Introducing a European chocolate brand into the highly competitive United States chocolate market poses a myriad of challenges and marketing issues that require meticulous planning and strategic implementation. In the case of Montreaux Chocolate, the new territory must be carefully navigated and the brand must effectively communicate its offerings to resonate with American consumers. One crucial aspect of this endeavor is the essential task of identifying specific consumer segments and demographics within the US market to tailor marketing efforts accordingly. By understanding the diverse preferences and behaviors of different consumer groups, Montreaux Chocolate can create targeted positioning statements that speak directly to the unique needs and desires of each segment. This process is paramount in selecting the final target consumer who will form the core customer base for the brand. Careful consideration must also be given to product packaging and design, ensuring that it not only appeals to the chosen consumer segments but also aligns with their respective demographics. The visual aesthetics and messaging of the packaging play a significant role in capturing the attention and interest of consumers amidst a sea of competing products. Furthermore, the journey of Montreaux Chocolate's entry into the US market extends to store design and product placement in retailers. Thoughtful deliberation on how the brand will be showcased in retail environments is vital, as it directly impacts visibility, accessibility, and overall consumer experience. Hence, every aspect of this ambitious venture demands meticulous attention and a deep understanding of the intricacies involved in successfully bridging European sophistication with American tastes and preferences.

Why did Apollo Foods want to bring Montreaux into the U.S. Chocolates market?

The Consumer Foods Group (CFG) of Apollo foods had purchased the rights to operate and sell Montreaux’s European chocolate products in the U.S. in attempt to increase its market share and gain a larger number of exclusive or higher-end market segments. 

Let’s discuss the key challenges and marketing issues that Andrea Torres must address at this time. Why do you feel these issues and challenges are key to the success of the new product line?

Andrea Torres, the director of the new product development at Montreaux Chocolate USA, must carefully decide if she should recommend to the board that Montreaux Chocolate USA do further product testing, launch in selected test markets, stage a regional rollout, or launch nationally. On top of this decision, she must present her recommendation to her division manager, David Raymond, as well as the board, all of which expect her to have a high level of confidence in her decision that considers the fact that the sales forecasts were very aggressive (very high). Since her division manager had so heavily committed to these high sales forecasts and Torres needs to be confident about her decision, the only way to be confident in this situation is to have highly accurate research and feasible application. Additionally, the alternate approaches may lead to competitors somehow acquiring the products, testing it, and forming a counter-attack or enabling them to capitalize on the opportunity to get a head start on developing the market. This is a concern because Montreaux Chocolate USA is aware of competitors who have developed and tested a dark chocolate with fruit concept product and who are not far from introducing it to the market. 

The case outlines two major consumer segments that are or might become interested in Montreaux Chocolate. What are these two segments? What are the demographic (age, gender, income, etc.) and psychographic (attitudes, motivations, lifestyles, usage intentions, etc.) markers of these two groups?

Two consumer segments that were highlighted by Montreaux Chocolate USA were men and women aged 45-64. These two consumer segments were covered in the Consumer Attitudes and Usage section as well as the What Motivated Consumers to Purchase Chocolate? section. The following is for the years 2010 to 2011 which is roughly when the case took place.

Given the demographic and psychographic markers of the two groups, which of the four product concepts, if any, would you recommend to each group? Why? If you do not recommend any of the 4 product concepts, what alternative product might you recommend for the segment?

Women: The 5 oz bag of squares (with fruit if possible) is best for women because of their focus on health and wellness while still wanting to be satisfied by the taste of the chocolate and an appropriate hint of fruit. The smaller sized pieces of chocolate will help in portion control according to the research conducted in the Second BASES Snapshot Concept Test. Additionally they found that “the 5-ounce stand-up pouch with healthy positioning to offer the greatest revenue potential” (Quelch and Badame, 7). This option may actually be the single best option from a business perspective because of its revenue potential and the possibility that men may not consider the bag-form a deal-breaker. 

Men: It is riskier, but men may prefer the simple design and lower price of the 3.5 oz bar of the 70% cocoa dark chocolate because of their tendency to prefer quick and easy satisfaction for a good deal or lower price. Additionally, although the research conducted found that most people prefer the 70% cocoa, the 90% may be more desirable for men who seek a small package that can deliver a boost of caffeine or energy with the enjoyable chocolate and fruit flavor. Additionally, it is possible that men may respond positively to a secondary message that mentions the health benefits of dark chocolate. 

Now that you've chosen a product concept and have an understanding of the two key consumer segments, write a positioning statement for each consumer segment.

Women:

For health-conscious ladies seeking to treat themselves while benefiting from the health characteristics of dark chocolate, Montreaux’s is the brand of premium chocolate that will let let you enjoy the wonderful flavor of chocolate while rejuvenating your body because of its health-inducing 70% cocoa composition and bits of fruit.

Men:

For the men seeking a healthier boost of caffeine for a great price, Montreaux’s is the brand of premium chocolate that will make you perform at your highest level because of its 70-90% cocoa level and refreshing hints of fruit. 

Which of the two segments would you ultimately choose to target? Why?

Targeting women as the consumer segment would be wisest because the research found that they recognize the value of the products that Montreaux is offering as well as the fact that they responded the best to the packaging and its respective health-related positioning statement. The research found that women “perceived a greater distinction between premium and non-premium chocolate than did men and identified premium chocolate as a personal luxury that offered better taste and greater flavor variety” (Quelch and Badame, 4). This ensures that most women view the product positively and do not think the prices are too high. In other words, they see the value the premium dark chocolate that Montreaux offers. This view that most women hold essentially means that, more often than not, there is one less boundary to overcome compared to other groups that may immediately dismiss the products once they become aware of their prices, which they may see as too high. Furthermore, this consumer segment is the best option because the research conducted found that the 5-ounce stand-up bag held the greatest revenue potential because of its portion control capabilities and health-related position. This approach to entering the market should ultimately offer the best results because of the high-quality research conducted and the interpretation and application of its findings. 

For the segment you chose to target, what are 3 product packaging, placement, or store design choices you would make to support your positioning at a perceptual level? Why?

Package Design/Appearance:

Having a dark color scheme (black and purple, black and burgundy, dark brown and purple, etc) with a pop of color when displaying the type of fruit contained in the chocolate bites would be a great idea for packaging design. As mentioned, this could be a black package to instill a sophisticated and luxurious feeling with rich, chocolate-colored accents around the package. For the front-side label, it could then show a detailed picture of shavings of dark chocolate on top of or surrounding a fresh piece of the fruit (that the chocolate is contains) on top of a luxurious matte-finished wooden table or cutting board to help instill a warm and comforting feeling. The font used on the packaging should be simple. elegant, and legible from a distance of at least 8 feet. It should be consistent with the sophisticated and luxurious design of the package, as well as the overall color scheme.

Store Design & Placement:

The placement of the 5-ounce bags of dark chocolate with fruit bites should preferably be at eye level or above (but no lower than 3 feet above the ground), in the chocolates or candy aisle to be consistent with the luxurious and sophisticated package design and branding. This will also ensure that the brand can be found easily and consistently. Alternatively, they could possibly be placed in aisle endcaps that have an elegant appearance (in order to stand out) with hints of off-white, black and dark red or burgundy, or purple. These endcaps should also say visibly “Montreaux Chocolate” on the top and sides so the endcap displays are visible from far away, and should be consistent with font, branding, etc. The endcaps should be made of quality and sturdy materials, not be more than 6 feet tall, and not be too large of a footprint. The endcap displays shouldn’t have an overwhelming number of packages placed on it, in order to make it the products approachable, not-overwhelming with options, but yet sophisticated and of a high quality.