Montreaux

Chocolate USA
Are Americans ready for
healthy dark chocolate ?

Made by- Group 6

Sahil Ratan – 281154, Sankalp Rastogi – 281155
Sanya Sethi – 281156, Saumya Prasoon – 281157
Shivam Mishra – 281158, Shrestha Misra - 281159
 • Montreaux Chocolate, a well-known Swiss
brand for long has been interested to enter
the U.S. market.
• Apollo was keen to expand its portfolio
and confectionery was the key growing
sector.
About the • In 2011, Apollo Foods' division Consumer
case foods group (CFG) purchased the rights to
distribute Montreaux Chocolate in the U.S.
• Andrea Torres was the director of the new
product department (NPD) and was
responsible for the product launch.
Company's background
• Apollo foods, a Los Angeles, California based, global consumer
packaged-goods powerhouse.
• It had a wide portfolio of brands, manufactured confectionery, biscuits,
snacks, beverages, cheese and convenient meals distributing it to over
170 countries.
• 2011 revenue for Apollo foods was $54.4 billion with net income of
$3.5 Billion.
• CFG contributed $9.1 billion in revenue with $1.26 billion in net
income.
• Apollo launched more than 70 new products over the last 3 years.
Goals of Apollo Foods

NATIONAL DISTRIBUTION $115 MILLION IN ANNUAL BE IN THE TOP 25 IN

OF MONTREAUX PRODUCT SALES. TERMS OF REVENUE.
LINES.
The Chocolate Confectionery Market
• Chocolate is made by crushing and refining cocoa beans where Dark chocolates contain cocoa beans ranging
from 55% - 70%
• Chocolate tends to be most lucrative segment of the global confectionery accounting 52.6% of total value.
• In 2011, Europe and US captured the largest share of market i.e. 45.2% and 33.9 % respectively.
• US confectionery market recorded total revenue of $35.648 billion with annual compound growth rate
of 2.8% between 2007 - 2011.
• US chocolate market was led by Lancaster company followed by Fishers with market share of 34.8% and
34.4%

Leading trends of US market are:

• Dark chocolate sales getting benefited due to antioxidants present in it which lowers cholesterol, provides
cardiovascular benefits and the low calorie reduces the Fats.
• Premium chocolates moving to mainstream with new labeling with terminology.
Consumer Behavior
• In confectionery market, adults consume chocolate by 92%, who ate 7-
8 pieces per month.
• Chocolate consumption market can be segregated by gender, age and
household income group.
• Women prefer chocolate more than men(94% versus 90%).
• 45-64 age group had the highest level of consumption and high
income group prefer box chocolate.
• Montreaux chocolate USA “loyalists” were female, aged 45-64
representing the section of elite society
 Consumer motivation for chocolate
purchase
• Women associated chocolate with positive experience such as personal
reward and mood enhancement.
• Men were more focused on price and would respond positively to practical
characteristics like energy boosters, affordable, convenient etc.
• Women perceived a greater distinction between premium and non-premium
chocolate.
• Over two-thirds of premium chocolate eaters believed it was healthier.
• Close to 40% of adults preferred mini and snack sizes.
 New Product Development at Montreaux
• The NDP Group’s charter was to achieve national distribution of Montreaux
Chocolate USA and build a business by developing new product line.
• With wide focus on health and wellness, Torres accepted NDP’s recommendation
to explore the growing dark chocolate category.
• Montreaux decided to partner with Nielson BASES to quantitatively assess and
optimize the new dark chocolate initiative.
• BASES’s extensive innovation experience had identified 12 key things for new
product success factors.
• BASES would help Montreaux hone in on the new product opportunity and
strategy by lining with Montreaux health and wellness plan, strong consumer
viability and delivering financial potential
 BASES
Idea Screening Test
• BASES offers low-cost way to
quickly prioritize new product ideas
merit for development, based on
performance on 4 factors:

 Distinct Proposition
 Attention Catching
 Need/Desire
 Advantage

From this screening test Montreaux

narrowed 12 ideas of strongest potential,
many of which incorporated dark
chocolate with fruit.
 Bases Concept Testing
• Test to identify early optimization opportunities and price
estimates prior to product development.
• A group of 200 consumers were asked to evaluate each concept.
• It identifies 5 dark chocolate with fruit concepts.
• With Blueberry, pomegranate and cranberry were among the top
flavors.
• NPD gave development priority to two dark chocolates
fruit concepts: two chocolates with 90% cocoa and others with
70%.
• The group listed chocolate with 90% cocoa was bitter.
• Apart from flavors their focus was also on the product size: small
portions in
5.0 Oz pouch or 3.5 Oz candy bar.
Second Bases Concept Testing
• Diagonostic information found out 5 Oz stand-up pouch
had greatest revenue potential.
• Through internet survey, respondents were selected and send
product samples and were asked their experience.
• NPD tried several tests to find the sales forecasts including
One-year volume forecast to analyze the
impact of adjustments of product size, price, quality of cocoa
and also to find the profitability and sales volume.
• Results stated 23% respondents would definitely buy the product
which was unsettling for the team.
RECOMMENDA • Sell under Montreaux's Name
• Develop taste based on local preferences to cater to US
TIONS consumers.
• Position the chocolate as a healthy product
• Rollout the product regionally.
Thank You!