Montreaux Chocolate USA:

Are Americans Ready for Healthy Dark

Chocolate ?

Group -7

Vivek Kumar Pandey-143115

Akash Jain- 143120
Ishan Kumar- 143073
Mahima Harwani- 143086
Rutba Mufti- 143093
Sakshi Jain- 143094
 Company Background
Company Name Apollo Foods
Location Los Angeles, California ,USA
Industry FMCG
Product Confectionery, Biscuits, Snacks, Beverages, Cheese,
Convenient Meals etc.
Company Divisions 4 Divisions
Network Distribution Network to 170 Countries
Market Share 2nd in Confectionery Share
Revenue & Income In 2011: In 2011 (CFG Division):
Total Revenue- $54.4 billion Revenue- $19.1 billion
Net Income- $3.5 billion Income- $1.26 billion
TIMELINE..

2011 2015

Acquisition between Set-up of Managing efficient Forecasting Sales

Apollo Foods Manufacturing Unit Workforce and Set-up
& Objectives
Montreaux Chocolate
 OBJECTIVES

National Distribution of the New Montreaux Product Line

$ 115 Million in Annual Sales

To be in Top 25 in the Revenue

 Chocolate Confectionary Market
Chocolat
e
Dar At least 55% cocoa
k
Milk Max. 50% cocoa

GLOBAL CHOCOLATE MARKET

52.6% Share
Largest Share
33.9% Share
45.2% Share
 US CHOCOLATE MARKET

$17.6 billion

Global leaders
15.
20.00% 16.8%
4%
15.00% 9.1%
10.00%
5.00%
0.00%
Fishers Apollo Cornelius S.A.
% share
 US Market share
34.90% Top Four Categories
34.80% Category Size Revenue Growth
34.70% Bar/Bag/Box 3.5 oz+ $7,149 million 7.6% from 2009-2011
34.60%
Seasonal -- $4,407 million 9.9%

34.50%
Bar/Bag/Box <=3.5oz $3,479 18.5%
Snack Size <=0.6 oz $2,522 million 10.8%
34.40%

34.30%

34.20%
Lancaster Co. Fishers

US Market share
 Channel Of Distribution
Segmentation
Distribution Channel Percentage
Premium Grocery 15.8%
20%
Mass Market Convenience Stores 11.7%
80% Drug Stores 9.0%
Wal-Mart 8.8%

Premium Mass Market

Premium Type Percentage

Gourmet 16.8%
Premium Upscale 2.2%
Super Premium 0.7%
Trends
Customer Attitudes and Usage

Montreux loyalists
included 45-64 aged
92% of confectionary women who are
eating population • Educated
preferred chocolate • Married
• Wealthy
• Health concerned
 Motivational Factors

Women Men
1. Mood 1. Energy
enhancement
booster
2. Improved
cardiovascular 2. Quick
fitness 3. Easy
3. Lower blood 4. Convenient
pressure
5. Affordable
 NEW PRODUCT DEVELOPMENT AT MONTREAUX

TO ASSESS
NIELSEN‘S AND OPTIMIZE
MONTREAUX BASES THE DARK
CHOCOLATE
INITIATIVE

Strategy in line Strong consumer Strong financial

with Apollo viability potential
 INCORPORATING NEW DEVELOPMENT
PRODUCT
Idea screening
• This insight was based on four factors
• Distinct proposition
• Attention catching
• Need/desire
• Advantage
Result
Narrowed down initial 45 ideas to 12.
Bases Snapshot Concept Test
• Early optimization process
• Rough size of the particle

Result
• Identified dark chocolate with fruit concepts.
• 70% preferred over 90% concentration.
 Second BASES Snapshot Concept BASES II Testing

• Contacting consumers via a proprietary Internet survey

• NPD developed 4 refined 70% cocoa dark chocolate with panel to gauge trial interest among a representative
fruit concepts sample
• Packaging/size : 3.5 oz. bar Vs. squares in a 5 oz. stand • BASES volume forecasting model data from free sample
up pouch and feedback
• RESULT • Result
• 5-ounce stand-up pouch with healthy positioning to offer 23% definitely buy
the greatest revenue potential 40% probably buy
• Taste was a strong secondary message – prioritize healthy
positioning
 SWOT ANALYSIS
• WEAKNESS
• STRENGTH
1.Enjoyed the second
position globally in the
confectionery business 1.Inexperience in
2. Brand awareness and chocolate business
strong reputation in US launch
market 2. Credibility of Montreux
3. Incredible sales force 3. No final decision
and marketing expertise

1. Great potential in dark

chocolate market
2. Consumption of dark
chocolate becoming a lifestyle
3.Premium chocolates moving
into traditional channels
( supermarkets, mass
merchandisers)
• OPPORTUNITY
1. Fierce competition –
Fisher’s, Lancaster's etc
2. Unfamiliarity of the
European brand in US
market
• THREATS
To Launch Or Not ?
• These goals are achievable by Apollo as it
had a revenue of $54.4 billion in 2011
• They were 2nd in the global market with a
share of 15.4%
• The revenue for chocolates in this
confectionary market has increased 30%
from 2007 to 2010
• Consumers in US were focusing more on
health and fitness
• Apollo in the past 3 years has innovated 70
new products and all have been successful
Attribute ratings for the 5 oz. stand up pouch with healthy
messaging concept -

Product Attribute % of agree or

strongly agree
Would be better for me than other chocolates 87
Would be high quality 85
Would taste great 84

Would come in varieties I like 78

Would be a great way to indulge in myself 74
On the basis of the
survey, it was suitable
Would be good for any time of day 61
to go with both sizes.
Would taste better than other dark chocolates 54
Would be good for everyday use 42 • 5 oz. with healthy
Would be all natural snack option 38 positioning.
Would be a good value 33 • 3.5 oz. with taste
message
 Recommendations
• Product name
- Montreaux
- Apollo
- Healthy cravings
• Whether to conduct further test or not
- Might spend more than $3 million
- Would take an year to obtain results
- Might lose to other competitors
THANK YOU..