This document provides information about developing a new chocolate spoon product for Ghirardelli Chocolate Company. It describes primary research conducted including observations at a Ghirardelli store, interviews with customers and managers, and an online survey. Key findings from the research indicate customers enjoy Ghirardelli's hot chocolate and mixing chocolate with other foods/drinks at home. The document then outlines plans for a chocolate spoon product, including flavors, packaging, pricing, distribution channels, and a promotion strategy.
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Table of Contents
Overview of The Company - Ghirardelli........................................................................................ 3
INTRODUCTION TO THE MARKET.................................................................................................. 3
New Product Decision.................................................................................................................... 4
Primary Research...........................................................................................................................5
Observations ...............................................................................................................................5
Personal Interview.......................................................................................................................6
Survey ........................................................................................................................................7
Current status of the product..........................................................................................................8
New Product Description................................................................................................................9
Target Audience ........................................................................................................................... 11
Current Target Audience...............................................................................................................11
New Product Target Audience ......................................................................................................11
Persona........................................................................................................................................12
Consumer Insights........................................................................................................................ 13
1. Brand Name .............................................................................................................................13
2. Innovation................................................................................................................................13
3. Price........................................................................................................................................13
4. Premium Brand .......................................................................................................................13
5. Easy to Prepare (Convenience).................................................................................................14
6. Flavors.....................................................................................................................................14
7. Desire.......................................................................................................................................14
The other consumerinsightisaboutdesire.Basedonourprimaryresearch,we have foundthatwhen
youprovide sample forthe customers,theywouldhave desire tobuyit.Furthermore,81% of people
like tomix chocolate withotherfood/drinks.If astore providesasample of chocolate beverage that
made by chocolate spoon, customers will likely to buy it and tryit at home.....................................14
8. Gift:.........................................................................................................................................15
Recommendation......................................................................................................................... 15
Bibliography.................................................................................................................................. 15
Appendix: A .................................................................................................................................. 17
Appendix : 2.................................................................................................................................. 20
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Overview of The Company – Ghirardelli
Centuries back Ghirardelli served as the Geno confectioner’s apprentice and showed a real
strong interest in the business basically originated from Italy. Between 1852 and 1895
Ghirardelli’s Chocolate Factory was located at around 4 different sites before it was took over by
the pioneer Woolen Milson the North Point Street, which now today is a Ghirardelli Square.
In 1960s the chocolate manufacturing operation was sold and transferred to San Leandro. A
group of San Franciscans feared that Ghirardelli might be demolished purchased the property.
They started establishing various shops and restaurant within the old factory, combining the
latest in retailing and fine cuisine with the flavor of old San Francisco. Soon the owners applied
and granted National Historic Register status, a move that endured the preservations of
Ghirardelli Square for future generations. (Ghriardelli Square and history)
In the history of the Ghirardelli Company it was acquired by various companies like in 1963 it
was bought by the Golden Grain Macaroni Company maker of Rice-A-Roni. Later Quaker oats
bought it in 1986 and then Lint and Sprungli from Switzerland acquired Ghirardelli Chocolate
Company in 1998 as a wholly owned subsidiary of it holding company. (Ghirardelli San
Francisco since 1852)
Ghirardelli consider itself as the first American company to understand and tap in to the power of
promotion. They are also among the few companies in America that controls the entire chocolate
making process from the bean to the bar. Also the company has made its image in the market
since centuries as the best high quality chocolates and a medium of gifting your loved ones.
(Ghirardelli San Francisco since 1852)
INTRODUCTION TO THE MARKET
Consumer demand for chocolate is on the rise in all around the world. Global chocolate market
was $83.2 billion in 2010 and based on the Chocolate Industry analysts conducted by M&M,
global chocolate market will grow to $98.3 billion in 2016. Regionally, The U.S. leads the
markets in North America with a market share of 86.3%. (M&M, 2011) Based on statista report,
Ghirardelli is one of the leading chocolate companies in the US with a market share of about
4.8%. (2015)
U.S. Chocolate Industry
The NCA reports that retail sales of chocolate products reached $18 billion in 2010. According
to NCA, annual sales have continued to increase from 3 to 4 percent per year. In 2010, the U.S.
exports of chocolate to worldwide markets were estimated to be over $1 billion. The undisputed
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leader for North American sales of chocolate products, the U.S. has a market share estimated at
over 86 percent.
Global Chocolate Market
Chocolate Industry analysts M&M predict the global chocolate market will experience annual
sales of $98.3 billion by 2016 -- the result of an annual growth rate approaching 3 percent.
Demand in Asia is a major source in the growth of sales, and is expected to rise to a 20 percent
share in the global market by 2016.
Cocoa Production
Chocolate is a by-product of the cocoa bean. Over 50 percent of the cocoa harvested annually
worldwide comes from West Africa. Most comes from Cote d'Ivoire -- Ivory Coast -- followed
by Ghana, Nigeria and Cameroon. Other significant producers include Indonesia, Brazil and
Ecuador.
Market Leaders
The largest manufacturers of chocolate in the world are annually ranked according to sales. The
International Cocoa Organization lists the top producer as Kraft Foods, Inc. with net sales of
nearly $20 million, followed by Mars, USA, Inc., and Nestle SA Switzerland.
New Product Decision
Product description “Chocolate spoon”
The new product for Ghirardelli is called “chocolate spoon.” The chocolate spoon will look like a
little square chocolate with spoon/stick on it. It will allow customers to have a more convenient
and easier experience when enjoying a hot chocolate beverage. Customers just need to heat up
any liquid that they want to mix with the chocolate and put the chocolate spoon into the
heated liquid. Then, it is all set up.
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The initial product will only provide three different flavors, which are dark chocolate, milk
chocolate, and caramel chocolate. The feature for this product will be five chocolate spoons in
one pack. Each pack either contains with the same flavor or a mix flavors, and the price will be
the same for every pack, which is $15 per pack.
The position for this product will be premium since this company provides premium chocolate
in the market. In addition, we are going to sell the product through grocery/pharmacy stores,
such as Safeway, Walgreens, CVS, etc., and the direct stores that Ghirardelli own.
Primary Research
For this project, we have used three important methods for
our primary research, such as observation, personal
interview, and survey, to gather the relevant information for
consumer insight.
Observations
The observation that we have done is in the Ghirardelli store, which is located at Fisherman’s
Wharf. The list below is the behavior from the customers that we have seen from the store:
Before ordering, customers discuss with each other. Most of the groups have at least one
opinion leader to give other people some relevant information.
Women make the final order decision more than men.
Most of the people there are tourists, including friends, families, and couples.
Most of the people ordered brownie chocolate sundaes and hot chocolate.
Customers prefer dining in more than take out.
After the meal, customers usually stay some time to see around what chocolate Ghirardelli
sells in store.
Not everyone makes a purchase after they have dessert in store.
Customers discuss about the dessert while they eat it.
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This observation leads us to come up with the idea for chocolate spoon. While observing, we
heard people wonder how to make those desserts and whether they could make them at home.
Personal Interview
Managerial Interview
In the Ghirardelli store, we had an interview with a manager for around 20 minuets. The list
below is the information that we have received from the manager.
Customers like to buy the largest mix flavor pack. It is the least expensive one.
Caramel is the flavor that people choose the most.
Almost everyone takes the sample when they walk into store.
Providing samples help them to see customer’s reaction to the chocolate and also encourage
customers to buy the flavor that they just tasted.
During the holiday season, the special package sells faster than other regular package design.
People ordered sundae and hot chocolate beverage the most.
Most people purchase something from the store after they have dessert there.
It is rare to see someone just walk in and leave without buying any chocolate.
The interview with the manager from Ghirardelli helps us understand that most of customers
consider the product’s value, including how much they are willing to pay for each product.
Customer Interview
To understand more about consumer insight, we have done other 2 interviews. One is with a
male and the other one is with a female. It helps us to understand the difference between male
and female.
The list below is from the interviews that we have done with both interviewees:
Both of the interviewees like to eat chocolate at least one time per day.
There is no limitation of eating chocolate for male interviewee because he does not care how
much calorie that he has per day, as long as he is not over eating chocolates.
There is some limitations of eating chocolate for female interviewee because she does not
want to get fat. Moreover, she does not do much exercise. It means she keeps her body in the
right shape by controlling the food that she eats per day.
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Interviewees are from different countries, but they do not have different value for buying
chocolates. Both of them like to buy the flavor that they like the most when they go to the
brand that they have never tried before.
Both of them are willing to try new things, including new products, new flavors, and so on.
The male interviewee does not buy chocolate from same brand. He compares the price
between different brands.
The female interviewee buy chocolate from certain brand that she likes. She does not care
that much about price, as long as it tastes good.
Both of them like to drink chocolate beverages.
From the personal interviews with two different people of different genders and nationalities, we
have found that in the chocolate category there is no differences on cultures, ethnic, or
nationality. However, gender differences might be only reason to make people have different
insight and different behavior. For example, in this interview, male interviewee does not have
brand loyalty, and he does not care how much chocolate he eats per day. Also, he tends to be a
price sensitive person. On the other hand, the female interviewee has brand loyalty, and she cares
about how much chocolate she eats per day. However, she is not a price sensitive person.
Survey
We created a survey by using Qualtrics survey software. The survey has launched online for a
week. The total number for people who completed this survey is 27 respondents. The age group
from the survey is from under 21 (4%), 22-31 (78%), 32-41 (11%), and 42-51 or above (7%).
Moreover, all of them know the brand Ghirardelli and have certain experiences with this brand,
such as having dessert at the store and buying or receiving the chocolate. The list below is the
result that we have found out from the survey:
More than half (52%) of respondents eat chocolate once per week.
Dark chocolate is the one that most respondents preferred. The second ranking is milk
chocolate.
Respondents choose Godiva more than Ghirardelli.
81% of respondents prefer to mix chocolate with other food, such as milk, bread, or cookies.
More than half of respondents do not have hot chocolate beverage from Ghirardelli.
More than half of respondents like to make chocolate beverage at home.
67% of respondents are willing to try chocolate spoon from Ghirardelli.
$15 is the price that respondents prefer the most for a pack of chocolate spoons.
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17 respondents like to mix chocolate with other food and are also willing to try new products
from Ghirardelli.
Females are more likely to try new products than males
The survey questions that we used are very simple, it took less than 3 minutes for 95% of
respondents to complete the survey. Even though the
questions are simple, we still gathered enough and relevant
information from this survey.
Current status of the product.
Product
Ghirardelli produces a wide range of chocolate products with different flavors. Their main
products are:
Chocolate Squares- This squares consist of different flavors and can be either purchase
individually or in premade packages.
Chocolate Bars- Large Bars of chocolates come in in smaller variety but are of the same
quality with different packaging pattern.
Backing Products- Include chocolate chips, Brownie mix, Baking chocolate and desert
sauces.
Hot Beverages- Including Hot chocolate, Frappes and
Mochas.
Pricing
Ghirardelli signature squares can be bought for just $1,
while the deluxe baskets starts from $200 onwards.
There is also some range of products between these
values with their bars usually retailing at around $4 and
their beverage around $5.The Hot chocolate beverage
starts with $4 and then an extra dollar for any extra topping.
Place
Ghirardelli has a couple of stores were they just sell chocolates while there are certain stores
were they also sell chocolates as well as they have a special café for the beverages and
deserts. Also the company has various tie ups with Wal-Mart, target, Safeway; Walgreens
etc. where they sell their huge amount of different package of chocolates. Ghirardelli Square
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near Fisherman’s Warf is the oldest and biggest store of Ghirardelli chocolates and the
cafeteria with many options.
Promotion
Ghirardelli make some promotion through television, websites social media such as
Facebook, snap chat etc. they also offer a trail chocolate in the store when anybody enters in
to the store every day.
Positioning
As per few of the researches and the various reports it is stated that Ghirardelli has been
positioned as the Americas Premium Chocolate Company. The people and Ghirardelli
employee also states that Ghirardelli is one is one if the high quality premium chocolate and
not the luxurious chocolates. Also it is not just famous for chocolates but also for the
beverages.
New Product Description
Product
The new product which planned to launch is the hot chocolate spoon. This product is an
innovative and relative product. We go to know that people love hot chocolate of Ghirardelli
and through our primary research we also came to know they like to mix chocolate with milk
and make it at home. We suggested that plan of chocolate spoon were it is just dipped in the
hot milk and the taste is the same like Ghirardelli Hot chocolate. This Product concept is very
new in the market and no big companies like Lint, Hershey’s etc. have tried this. This
Product will be available with 3 flavors dark chocolate, caramel and milk chocolate spoon. In
other outlet stores it would be available in 5 piece packages while in the Ghirardelli store the
customer can purchase individual pieces.
Price
The Price of each chocolate spoon is 3$ which is $1 less than the hot chocolate offered in the
café of Ghirardelli. The reason for keeping the price at 3$ is because they don’t need to come
to the cafe for the chocolate and on the other side we conducted a primary research and we
ask the potential customer that what price they would be accepting and willing to try this
product within the range 15 to 30$ for 5 pieces and we got the answer as 15$. Also it’s a new
product and the big brand is associated with it so this price is a suitable idea.
Place
The new product chocolate spoon will be available at all the Ghirardelli chocolate stores and
also the café. The other places are the souvenir stores, Wal-Mart, Costco, Target, Walgreens,
and Safeway etc.
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Promotion
This product is new in the market and nobody
knows about it so a high-end promotion would be
adopted.
Events:
Ghirardelli chocolates are always famous for the
event which they conduct every year so the
company would promote is new product in those
events. The events like chocolate day conducted
by the company for the chocolate companies is also a great medium to enter in the market
with much more awareness.
For example during the dark night chocolate hour the company created a special tasting of
new flavor chocolates and they had a great idea on what the people perceive but on the other
hand they also created a big sale. So the trial can be done during that time.
Social Media
A lot of target audience can be easily obtain online on the social media website like
Facebook, twitter, instagram, snap chat etc. people can post there experience and celebration
of the new product by the insta pic and various snap stories. This medium is more effective
because people trust other people rather than companies and also they can share their
experience, idea and opinions.
Tourism companies
Having known that the major target of the company is tourist it would be great if the
Ghirardelli tie up with hop on and Hop of company who have
various tourist bus all over the city. The tourism map of San
Francisco also includes Ghirardelli square so what the company can
do is give a spoon size small coupon to the tourist and ask them to
show at the Ghirardelli Square were they will be given a chocolate
spoon sample which they can try anytime.
Positioning
The chocolate spoon will be positioned as an innovative product,
which is new in the market with various features like the same taste,
easy to make, Convenience and also matching the standard of the
companies.
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Target Audience
Current Target Audience
As we know the company is well known for its premium chocolates it has a high number of
refined customers. The main customers are the adults and not
the children. The stores of the Ghirardelli are set up in a café
style atmosphere, which encourages the customer to cone and
spend some time.
Tourists- Ghirardelli as being the oldest company of
chocolates establishes in San Francisco is a tourist
attraction and a part of San Francisco gift. People know
about the company and its chocolate before they enter in
San Francisco.
Professionals: Due to the café style atmosphere and
beautiful ambience people like to have their meeting and
leisure time there.
Couples: the premium chocolates are a way of gesture of beautiful gifts to the loved ones.
The Ghirardelli company have various packaging for the different festivals and also for the
gifts like beautiful baskets.
New Product Target Audience
The target audience of the Ghirardelli Company would be the same. But with this concept of
Chocolate spoon the company will be also able to target on the convenience of people and that
would include more target people.
Demographics: The main target audience for the hot chocolate spoon would be the adults
who like to have beverages and don’t have time to stop by at the Ghirardelli square daily.
Also the tourist who are visiting to San Francisco and would like to take creative gift for
there loved ones.
Psychographics: People who prefer the high quality premium brand and like to have same
type of taste as they have in the Ghirardelli café. Also the people who would be most
connected with this product will be working people who don’t get time to make or cook.
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Geography: In the initial period we would like to set up this product only in the San
Francisco and then there would be expansion in the various cities and states. Also the
chocolate spoon will be accessible in all big super markets and all the stores of Ghirardelli
and also the souvenir stores.
Behavioral Characteristics: This is a very new product in San Francisco and very less
people are aware about this product, So due to this reason the main target audience would be
the Innovators who would like to try new products and also Loyal customers who have been
loyal to the company for a long period of time they would also like to try the new product
which is in the market.
Persona
Persona #1
- Jessica
- Age: 32
- Occupation: office worker, married, have two kids
- Income: 75,000
- Profile: Jessica is a workingwoman. She needs to prepare food for her husband and kids
every day. She feels that cooking or make snacks take lots of time from her. Her kids usually
need to have something to eat/drink when they get home, and all of them are chocolate lover.
Persona #2
- Michael
- Age: 28
- Occupation: office worker, single
- Income: 100,000
- Profile: Michael is a office worker, he is very busy at work every day. So, his busy life
makes him like to use convenient products, such as eating microwaved food. He likes
chocolate. It keeps his energy up and feels happy. Also, he drinks milk in the morning/before
go to sleep at least once a day. He likes to meet friend in café, and likes to choose chocolate
product as a gift for friends.
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Consumer Insights
1. Brand Name
Based on the survey that our team conducted, all the responders answered that they are familiar
with the Ghirardelli brand. Respondents were asked whether they have had any hot chocolate in
one of the Ghirardelli stores or not and, 48% of the respondents answered they had and they
stated that the hot chocolate they bought from the market which is Ghirardelli hot chocolate
powder tastes not as good as the one Ghirardelli serves in their store, so they noted that they
would love to try the new hot chocolate spoons since the spoon will look and taste consistent
everywhere.
2. Innovation
The hot chocolate spoon will be the same in stores and in the market, so people will not
experience unpleasant surprises when they purchase it. Ghirardelli is a premium and established
brand, so both the loyal customers and the new customers would like to try this new product.
Moreover, hot chocolate spoon is a perfect fit for the American culture as well, since people are
so busy with the work, they may not have time to go to store, they can buy hot chocolate spoon
from the markets and they can get the same taste as they would if they were having the spoon in
store. Based on the survey results, 69% of the people would like to try this new product.
3. Price
The hot chocolate at the Ghirardelli café is 4$ while the chocolate spoon will be 3$. This will be
on eof the reason which will motivate the customer to purchase the hot chocolate. Also at less
price they would be able to enjoy the same taste and same quality of hot chocolate at home with
a less price.
Ghirardelli has consumer who love the company because of its premium quality and standards,
which is the reason why people would be ready to pay the amount and try this new product. The
company in this prize is also offering 3 flavors, which is not a bad option. The 5 piece pack of
the chocolate spoon will cost around 15$ to the customers. Also in our primary research we ask
the respondents from 15$ to 30$ which price they would select in order to get these new product
of Ghirardelli and we got the reply that they would like to see
the product of 5 packages at 15$ and the same answer was
given by 70% of respondents which is really huge in number.
4. Premium Brand
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Ghirardelli Chocolate Company has a history of 160 years that itself is a big brand. People in
America know Ghirardelli as a premium quality chocolate company. People know about
Ghirardelli before even coming to San Francisco and they make sure they take these chocolates
as a gift for the people who are away.
As per the survey we took 25 respondents and all of them are aware about the company and its
chocolates. So because of the name there would be lot of people who are interested to taste this
new product and they know that the company would not compromise in there quality and
standards so this is also a perception which will lead to trial of the new product which is the Hot
chocolate Spoon.
5. Easy to Prepare (Convenience)
People like to have something easy to use or easy to make since their lives are very busy. Based
on the primary research, we have found that 54% of people like to eat chocolate once a week.
Also, most people are busy for their life, whether work or school. Therefore, the chocolate spoon
is a product that is easy to make.
To apply this consumer insight to the marketing plan, Ghirardelli could have made in store demo
or make short video to show people how easy and fast it is to prepare a chocolate beverage.
6. Flavors
Another consumer insight is about flavors. Based on our primary research, we have found that
42% of people like to eat dark chocolate, 35% of people like to eat milk chocolate, and 12% of
people like to eat white chocolate. From the observation and interview, caramel is the flavor that
most people purchase. It means that flavor diversity in Ghirardelli is important to attract people
to buy it.
To apply this consumer insight to the marketing plan, Ghirardelli could provide more special
flavors in holiday season, or let customers create their own chocolate spoon’s flavor.
7. Desire
The other consumer insight is about desire. Based on our primary research, we have found that
when you provide sample for the customers, they would have desire to buy it. Furthermore, 81%
of people like to mix chocolate with other food/drinks. If a store provides a sample of chocolate
beverage that made by chocolate spoon, customers will likely to buy it and try it at home.
15. 15
8. Gift:
A study has told that the people who purchase the Ghirardelli Products are not the actual
consumer of that product and so it is a symbol and prestige of gift and also a souvenir for the
tourist. The company makes sure they have beautiful packaging and themes for the holidays and
festivals. They have special San Francisco Trams for the tourist which is filled with chocolates
and this is how they differentiate from there other competitors.
So the same thing they can do for the Chocolate spoon and this will also be a special gift to the
people for the special events.
Recommendation
Having studied Ghirardelli`s current customers, their buying habits,
behaviors and their insights, me and my team highly recommend this
new product. The primary research that we conducted, gave us
information about our target market and position in the market and
also, the secondary research helped us to understand that this new
product would be unique in the market. Based on our findings, we
want to launch chocolate spoon product, in order to be unique in the
untappedmarket.
Bibliography
Ghirardelli. (2015). Ghirardelli San Francisco since 1852. (Ghirardelli Company) Retrieved
2015, from www.ghirardelli.com: http://www.ghirardelli.com/our-story
Ghirardelli. (2014). Ghriardelli Square and history. (Ghirardelli) Retrieved 2015, from
www.ghirardellisq.com: http://www.ghirardellisq.com/explore/history/
MarketandMarkets (M&M). ( May,4 2011) “Global Chocolate, Cocoa Beans, Lecithin, Sugar
and Vanilla Market by Market Share, Trade, Prices, Geography Trend and Forecasts (2011-
16. 16
2016)” Retrieved from http://www.candyindustry.com/articles/83849-global-chocolate-market-
worth-98-3-billion-by-2016
Market share of the leading chocolate companies in the United States in 2014. (2015). Retrieve
from http://www.statista.com/statistics/238794/market-share-of-the-leading-chocolate-
companies-in-the-us/
17. 17
Appendix: A
1. Do you know Ghirardelli?
o Yes
o No
2. What is your gender?
o Male
o Female
3. What is the best to describe your age?
o Under 21
o 22-31
o 32-41
o 42-51
o 52 and above
4. How often do you eat chocolate?
o Never
o Once or more per day
o Once in two days
o Once per week
o Twice per week
o More than 2 times a week
5. What kind of chocolate flavor you like the most?
o Dark chocolate
o Milk chocolate
o White chocolate
o With caramel
o With nuts
o With fruit
6. Which chocolate brand you like the most?
o Ghirardelli
o Godiva
o M&M’s
o Harshey’s
o Reese’s
18. 18
o Others, please name it _______________
7. Would you like to mix chocolate with other food/drink, such as milk, bread, cookies, and
so on?
o Yes
o No
8. Continue the previous question. If yes, what kind of food/drink would you like to mix
with chocolate?
o Milk
o Bread
o Cookies
o Others, please name it _______________
9. Have you ever had hot chocolate beverage from Ghirardelli?
o Yes
o No
10. Have you ever had hot chocolate beverage from other brands beside Ghirardelli?
o Yes, please name it one brand that you like the most. _______________
o No
11. How are you willing to pay for making own hot chocolate beverage at home? (1= not
willingness, 5=highly willingness)
12. Does anyone you know who likes to have self-made hot chocolate beverage at home?
o Yes
o No
19. 19
13. If there were a new product from Ghirardelli is called “chocolate spoon,” would you
interested in?
o Yes
o No
14. Continue the previous question, how much would you like to pay for a pack from $15 to
$25? (Each pack contain 5 chocolate spoons)
o __________________
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Appendix : 2
SWOT ANALYSIS
STRENGTHS OPPORTUNITIES WEAKNESSES THREATS
High brand recognition Hot chocolate market
has a similar potential
as the coffee market
Primarily focused on
the product, not the
experience
Competitors have
already have control
over the majority of the
hot beverage in the
market
Credibility of the brand Weather in San Fran is
‘cool’ for most of the
year
Mainly known with
chocolates and ice-
creams
Hot chocolate can be
hard to sell in summer
times
Appeals to both local
people and tourists
San Francisco
welcomes tourists all
of the time
Lack of marketing of
hot chocolate
Stores are in good
strategic location
Chocolate spoon is
unique in the market
Expertise in art of
chocolate making
High demand for hot
chocolate
Untapped market