Montreaux Chocolate aims to introduce a new line of premium dark chocolates in the US market. After generating 45 initial ideas and screening them down to 12 fruit-based concepts, they developed 4 refined dark chocolate concepts containing 70% cocoa with flavors like blueberry, pomegranate, and cranberry. These would be offered in a 3.5 oz candy bar and 5 oz stand-up pouch, priced at $4.49, and distributed through supermarkets, drug stores, and convenience stores nationwide. Market research with 200 consumers on each concept was positive, and Apollo's large size, growing market share, and focus on health positions them well to successfully launch this new product line.

1. Case Study-
Montreaux Chocolate
USA: Are Americas
Ready for a Healthy
Dark Chocolate

2. COMPANY BACKGROUND
company Apollo Foods
Location Los Angeles, California, USA
Industry Food
Products Confectionary,
Biscuits,
Snacks,
Cheese,
Beverages,
Convenient meats
Division 4 divisions, 1 of it is Consumer Foods
Group (CFG)
Distributor 170 countries world wide
Market share Second place in US chocolate market
Year 2011 Revenue- $54.4 Billion
Net Income- $3.5 Billion

3. CHALLENGES
• To Introduce a new Product
• Product Name-Apollo or Montreaux
• Positioning
• Channels of Distribution
• Packaging
• Being pioneers at chocolate making

4. DEMANDING GOALS
• National Distribution
• $115 million annual sales
• Be in top 25 in revenue (0.60% Market Share)

5. SEGMENTING
• Mass market
• Premium market
• Affordable luxury
• Upscale premium
• Super premium
TARGETING
• AGE: 45-64
• USA
• GENDER: Men and women (57% Females and
43% Males are daily chocolate eaters)
• INCOME: $50,000+
• College-educated, Married with children
POSITIONING
• BENEFIT: Reduce chances of high cholesterol
and provide cardio-vascular benefits.
• POP: Dark Chocolate in Chocolate segment
• POD: 70% cocoa with additional natural fruit
ingredients.

6. INDUSTRY FACTS
• Apollo held a 15.4% share in U.S.
• Confectionery markets, making it second highest
in market share after Fisher’s in 2011
• Such big market shares would imply stronger
associations of Apollo with that of its
confectioneries

7. CONSUMER BEHAVIOR
• Women preferred chocolates more than men (94%
vs 90%)
• High income earners preferred boxed chocolates
• Confection eating adult age group was noticed to
be 45-64
• They preferred premium and speciality chocolates
• As they grew older they preferred dark chocolates
• Montreaux brand had loyalists, women of age 45-
64 representing a section of elite society

9. INCORPORATING NEW PRODUCT
DEVELOPMENT
1. IDEA GENERATION:
– Introducing dark chocolates in U.S
– 45 ideas that all parties agreed for further
testing.
2. IDEA SCREENING:
– Narrowed down initial 45 ideas to 12, many of
which incorporated dark chocolate with fruit.

10. 3. CONCEPT DEVELOPMENT AND TESTING:
– Each idea was developed into a full concept via
the addition of concept images, messaging,
varieties and prices.
– 200 consumers per concept were asked to
evaluate and to provide feedback.
– 5 concepts were finalized and further
developed and the team confirmed that
blueberry, pomegranate and cranberry should
be among the top flavours.

11. 4. MARKETING STRATEGY DEVELOPMENT:
(Marketing mix )
– PRODUCT:
• High quality
• Good taste
• Comes in varieties (flavours include pomegranate,
cranberry, blueberry)
• 3.5-ounce candy bar and 5-ounce stand-up pouch
• 70% cocoa
– PRICE:
• Each 5-ounce pack is priced $4.49

12. – PLACE:
• USA
• Distribution channels:
– Super centers
– Supermarkets
– Drug stores
–Convenience stores
5. BUSINESS ANALYSIS:

13. 6. PRODUCT DEVELOPMENT:
– NPD developed 4 refined 70% cocoa dark
chocolate with fruit concepts
– Packaging/size : 3.5 oz. bar Vs. squares in a 5
oz. stand up pouch
7. TEST MARKETING:
– Participants were shown headline descriptions
and were given samples of the four products

14. TO LAUNCH OR NOT??
• These goals are achievable by Apollo as it has a
revenue of $54.4 billion in 2011
• They are 2nd in the Global market with a share of
15.4%
• The global confectionary market has been on a
rise with 2.8% growth rate between 2007 to 2011
• The revenue for chocolates in this confectionary
market has increased 30% from 2007 to 2010

15. • The US chocolate market is expected to grow at 2% by
2015
• The target audience of these chocolate was set to be
people from the age group of 45-64.In USA the
population in this category is approximately 27%(2011)
• Apollo in the past 3 years has innovated 70 new products
and all have been successful, there is a strong brand value
that Apollo carries with it which would be beneficial
• Consumers in US focus on fitness and health , Apollo
have an upper hand in launching the Montreaux dark
chocolate as it is low in calorie and as it has more of
cocoa content.

16. Thank You
By:-
Kavya
Harshitha
Goutham
Vivek
Bheemendra