This Montreaux Chocolate USA: Are Americans Ready for Healthy Dark Chocolate?

case
study discusses the move of Montreaux USA to create a product specifically for U.S.
chocolate consumers. The case focuses on the problems faced by the company and the
solution it undertook to resolve these problems.

JOHN A. QUELCH AND DIANE BADAME

HARVARD BUSINESS REVIEW (914501-PDF-ENG)
AUGUST 05, 2013

Case questions answered:

What were the problems faced by Montreaux Chocolate USA in positioning, sizing, and
packaging its products?
Should the company build upon its European brand equity or more directly tailor to
American consumers?
The company needs to decide on size packaging. Should it market its products in
smaller squares for the portion control or as a 3.5-ounce candy bar?
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Montreaux Chocolate USA: Are Americans Ready for Healthy Dark Chocolate? Case
Answers
Executive Summary – “Montreaux Chocolate USA: Are Americans Ready for Healthy Dark
Chocolate?” Case Study
Traditionally, chocolate is seen as a guilty pleasure enjoyed by many as a sweet,
milky treat. Produced by refining cocoa beans, the popularity of dark chocolate has
consequently gained momentum due to this need for healthier alternatives. For the
Consumer Foods Group (CFG) of Apollo Foods, a global consumer packaged goods
company, acquiring the Swiss Montreaux Chocolate Company has proved to be an
advantageous merger as the chocolate segment of the global confectionery market is
quite profitable.

Sharing 52% of the market’s total value, the U.S. chocolate market has an
anticipated 2% annual growth rate through 2015 in the United States. While the
acquisition is deemed as a mutually rewarding relationship for both parties in
relation to their own business goals, the push to launch a new product is at the
forefront of the mergers’ objectives for the next three years.

Situation Analysis
Introduction
Consumer Food Growth (CFG), an American company, has purchased the right to
distribute Montreaux’s European chocolate production in the USA to increase its
market share. Andrea Torres was the director of new product development, and David
Raymond was the divisional manager of Montreaux Chocolate company.

Raymond has been known for his aggressive selling concept, and he is committed to
set aggressive sales forecasts. Apollo grabs the market opportunity by acquiring
Montreaux Chocolate USA.

Company Objectives
National distribution of new product lines.
$115 million in sales.
Be in the top 25 in the revenue (0.60% market share)
Problem statement
What were the problems faced by Montreaux Chocolate USA in positioning, sizing, and
packaging its products?
Should the company build upon its European brand equity or more directly tailor to
American consumers?
The company needs to decide on size packaging. Should it market its products in
smaller squares for the portion control or as a 3.5-ounce candy bar?
Target Market
Supported by the data provided in the case, the suggested primary target market for
the Montreaux Chocolate’s new product line is the “everyday sophisticated” or
“bliss consumers.” These individuals are typically health-conscious consumers ages
45-64 who earn an income of $50,000+ and are college-educated and married with
children.