swiss chocolate harvard case study

1. Swiss Chocolate
Challenge: SwissOne
Vs. Toblerone
Name: Riya Shah
Student Number: 155801210
Seneca E-mail: rshah91@myseneca.ca
Course: Strategic Marketing Management MKM805 ZTT
Professor: Rob Persiko
Date: 04th June, 2023

2. INTRODUCTION
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• Vernon Stuber established Cocoa Luxury SA under the SwissOne brand
with the intention of reviving the idea and history of traditional, premium
Swiss chocolate.
• SwissOne set itself apart from rivals by concentrating on the luxury market
segments and utilising more cacao and less sugar than rivals.
• Additionally, the business created a sustainable supply chain that was in
line with the Fairtrade Max Havelaar Foundation and offered cocoa growers
great working conditions and just compensation.
• The business can promote itself as a luxury brand that provides a
sustainable and artisanal alternative to mass-produced chocolates, luring
customers who value quality and morality above all else.

3. SITUATIONAL ANALYSIS
(5Cs)
3
COMPANY
• A well-known luxury
chocolate company,
Swiss One is renowned
for employing quality
ingredients, creating
cutting-edge flavours,
and demonstrating
exceptional
craftsmanship.
• It aims to give clients a
luxury and pleasurable
chocolate experience. It
has developed a strong
brand image and is
known for providing
exceptional chocolates.
CONTEXT
• Organic, sugar-free,
and healthier chocolate
varieties are in greater
demand as consumers
become more health
conscious.
• Additionally, there is a
rising demand for
distinctive flavours and
customised chocolate
experiences.
CUSTOMER
• From the market
research and customer
feedback that
SwissOne's target
customers are
discriminating people
who value luxury goods
and are prepared to
pay more for higher
quality.
• These clients admire
SwissOne chocolates'
artisanship, legacy, and
use of premium
ingredients.
COMPETITOR
• Significant rivals
include Godiva, Lindt &
Sprüngli, Toblerone,
and Neuhaus. These
rivals have a well-
known brand name and
a significant market
presence.
• The difficulty for
SwissOne is in
differentiating and
gaining a sizable
market share.
COLLABORATOR
• SwissOne works with
vendors of premium
dairy products, cocoa
beans, and other
components. To
guarantee that their
chocolates are widely
accessible, they also
collaborate with
distributors, merchants,
and online platforms.
• Collaborations with
upscale lodging
facilities, commercial
airlines, and gift stores
assist improve brand
accessibility and
visibility.

4. SITUATIONAL ANALYSIS
(PESTLE)
4
POLITICAL
• Regulations
governing food
safety, labelling, and
packaging can have
an impact on the
chocolate market.
• The price of raw
materials and
market accessibility
can also be
impacted by
changes in trade
policy, import/export
laws, and taxation.
ECONOMIC
• The demand for
upscale chocolates
can be affected by
economic variables
such disposable
income, consumer
purchasing habits,
inflation rates, and
exchange rates.
• Consumer spending
may decline during
economic
downturns, which
could have an
impact on the sales
of luxury goods like
Swiss One.
SOCIOCULTURAL
• The demand for
different kinds of
chocolate is
influenced by
consumer tastes,
cultural customs,
and lifestyle
decisions.
• Fair trade,
sustainable business
practises, and
ethical sourcing are
becoming more
popular, which may
influence consumer
attitudes and
purchasing choices.
TECHNOLOGICAL
• Manufacturing
process, packaging,
and logistical
innovations can
boost productivity
and cut costs.
• Swiss One has the
chance to interact
directly with
customers and
reach a larger
audience thanks to
digital marketing and
e-commerce
platforms..
ENVIRONMENTAL
• Consumers are
placing more and
more value on
utilising eco-friendly
packaging, obtaining
cocoa beans
sustainably, and
lowering their carbon
impact.
• The dedication of
Swiss One to
sustainable
practises can
improve the
company's
reputation and draw
in clients who care
about the
environment.
LEGAL
• Legal considerations
include rules
governing
employment,
intellectual property
rights, labelling
standards, and food
safety.
• For the sake of
brand reputation,
consumer trust, and
product quality,
compliance with
these rules is
essential.

5. “
- The fierce competition in the Swiss chocolate market places a premium on new
product development and differentiation.
- Cocoa bean suppliers can exert some influence by highlighting the value of
sustainable sourcing and preserving supplier. relationships.
- Consumers have a moderate amount of negotiating power, which encourages
businesses to provide distinctive and superior goods.
- New competitors face substantial entry barriers and must make sizable
investments in branding, distribution, and chocolate production know-how.
- The robust reputation of Swiss chocolate and the demand for high-quality
products are the main drivers of the industry's overall moderate profitability.
- By using a premium pricing strategy, SwissOne Chocolate stands out in a
market segment that values fine and expensive chocolate.
- A small number of dominant businesses, including Mars, Mondelez
International, Nestlé, Ferrero, and The Hershey Company, control a substantial
portion of the Swiss chocolate market.
- Due to their traditional workmanship and well-established reputation for
excellence, Swiss enterprises, such as Lindt & Sprüngli and other smaller
businesses, hold a sizable market share.
INSIGHTS

6. PROBLEM STATEMENT
How can SwissOne maintain its position as a premium brand and sustain its
profitability in the increasing competition and evolving consumer preferences in the
chocolate industry, which is impacting its market share and growth potential?
Competition is severe in the chocolate industry, where a large number of well-known firms and newcomers
are each offering a variety of goods and services. SwissOne needs to develop distinctive strategies to
distinguish out in this crowded industry in order to keep its clientele.
Consumer Preferences are Changing: There is an increasing demand for distinctive flavours, organic and
sustainable options, and individualised experiences when it comes to chocolate goods. SwissOne must
modify its offers to reflect these evolving demands in order to stay relevant and draw in new clients.
Threat of Substitutes: SwissOne's traditional chocolate offerings are in danger due to the availability of
substitute confectionery items, the rise of health-conscious tendencies, and growing knowledge of the
harmful consequences of excessive sugar consumption. The business must come up with creative solutions
to this problem in order to satisfy the needs of customers who are concerned about their health.
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JUSTIFICATION FOR THE PROBLEM
STATEMENT:

7. OBJECTIVES
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• Enhance Brand
Differentiation
• Expand Distribution
Channels
• Improve Cost Efficiency
Short term
objectives
• Sustainable Sourcing
Practices
• Consumer Engagement
and Loyalty
• Continuous Innovation
Long Term
Objectives
Customers
• Consider SwissOne to be a premium chocolate company that offers distinctive
and cutting-edge flavours.
• Praise SwissOne's chocolates for their great flavour and quality.
Employees
• Consider SwissOne as a fulfilling and rewarding workplace with room for
innovation and growth.
• Describe the company's dedication to the growth and well-being of its
employees favourably.
Retailers
• Consider SwissOne as a dependable partner who offers top-notch products
and competitive profit margins.
• Mention how trustworthy and efficient SwissOne's supply chain and customer
service are.
Suppliers
• Consider SwissOne as a trusted partner and long-term client who respects
ethical business conduct and sustainable sourcing methods.
• Speak well of the business's ethical and open approach to procuring
ingredients.
Competitors
• Consider SwissOne as a tenacious rival with a solid reputation for its brand
and cutting-edge products.
• Speak favourably of SwissOne's contributions to the sector and its capacity to
establish trends.
KEY STAKEHOLDERS

8. ALTERNATIVE
ALTERNATIVE RATIONALE EXPLANATION
Expanding Product Portfolio SwissOne can increase its customer base and set itself apart from rivals
by diversifying its product offering. The issue of substitutes is also
addressed by providing healthier options.
To adapt to shifting consumer expectations, release a variety of cutting-
edge chocolate products with unusual flavour combinations and organic
components.
Enchancing Customer Engagement Enhancing customer involvement strengthens SwissOne's market
position by fostering brand loyalty, encouraging repeat business, and
generating favourable word-of-mouth.
Utilise client information and preferences to develop targeted promotions,
recommendations, and loyalty programmes to implement a personalised
marketing strategy.
Strengthening the Distribution Channels SwissOne can expand its market reach and make its products easily
accessible to clients by expanding its distribution channels, which will
lead to an increase in sales.
Establish strategic alliances with upscale accommodations, specialty
shops, and gourmet food distributors to increase SwissOne's chocolates'
accessibility and exposure.
Collaboration and Promotion Limited Edition By utilising the Blue Ocean strategy, collaborations and limited edition
releases thrill customers, foster exclusivity, and set SwissOne apart from
rivals.
Create co-branded chocolate goods or marketing initiatives by
collaborating with well-known brands or influencers. This will raise brand
awareness and draw in new client demographics.
Embracing Sustainability Adopting sustainability not only appeals to consumers who care about
the environment, but it also strengthens SwissOne's brand reputation and
secures the supply chain's long-term stability.
Obtain cocoa from sustainable suppliers that have earned certification,
and make clear the company's dedication to ethical business practises.
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9. “
RECOMMENDATION :
ENHANCING
CUSTOMER
ENAGAGEMENT
•SwissOne seeks to improve consumer engagement, raise satisfaction, and encourage brand loyalty
by applying personalised marketing methods and interactive experiences.
Customer-Centric Approach
•By utilising consumer data to create tailored promotions, recommendations, and loyalty
programmes, SwissOne can set itself apart from the competition by developing a stronger
emotional connection with clients.
Competitive Advantage
•By encouraging pleased and involved consumers to produce positive word-of-mouth marketing,
luring new customers, and bolstering its market position for long-term success, SwissOne can
improve brand reputation and perception through customer involvement.
Increased Brand Reputation
•SwissOne may use consumer data, invest in technology, and develop individualised experiences
that can be scaled based on resources and market conditions by increasing customer engagement
through flexible and adaptable strategies across offline and online channels.
Adaptability and Feasibility
•By encouraging repeat purchases, brand advocacy, and new client acquisition, a customer
engagement focus helps SwissOne foster loyalty, recurring income, and long-term growth, all of
which are goals for the company's success in the chocolate sector.
Long-Term Growth Potential

10. COMPETITIVE ADVANTAGE USING VRIO FRAMEWORK
CORE COMPETENCY DESCRIPTION VALUE RARITY IMITABILITY ORGANIZATION COMPETITIVE
ADVANTAGE
Brand Reputation and
Recognition
SwissOne is known for its
premium chocolates and has
established a solid brand
reputation.
Yes
Sales are fueled by brand
reputation, which also
increases customer loyalty.
Yes
While other businesses may
have well-known brands,
SwissOne stands out due to its
reputation for fine chocolates.
No
Competitors might try to imitate SwissOne's
brand recognition, but doing so would be
challenging without constant quality and
satisfied customers.
Yes
SwissOne has continually produced
outstanding products and managed its
brand well, giving it a significant
competitive edge.
Yes
Product Innovation and
Development
SwissOne places a strong
emphasis on innovation and
consistently creates fresh and
distinctive chocolate flavours
and concoctions.
Yes
Product innovation draws
clients and keeps SwissOne
one step ahead of rivals.
Yes
SwissOne is one of the few
companies on the market that
focuses on unique flavours
and combinations.
Partial
Competitors may try to create new flavours, but
it will be difficult to match SwissOne's degree of
originality and invention.
Yes
SwissOne has a committed R&D staff
and an innovative culture that help it
maintain a competitive advantage.
Yes
Supplier Relationships and
Quality Control
SwissOne upholds strict
quality control procedures
and solid supplier
connections.
Yes
Strong supplier ties guarantee
a steady supply of premium
ingredients, which enhances
SwissOne's chocolates'
outstanding flavour.
Partial
Maintaining dependable
supplier ties is beneficial, but it
is possible for rivals to do the
same.
Partial
Comparable supplier partnerships can be
created by rivals, but effective planning and
dedication are needed to ensure strict quality
control methods.
Yes
SwissOne's focus on supplier
relationships and quality control helps it
offer superior products, which gives it a
competitive advantage.
Yes
Customer Service and
Satisfaction
SwissOne prioritises
providing great customer
service and aims to go above
and beyond for its clients.
Yes
Providing excellent customer
service boosts consumer
satisfaction, builds brand
loyalty, and encourages good
word-of-mouth advertising.
Yes
While providing excellent
customer service is a standard
company practise, SwissOne
stands out from rivals due to
its dedication to going above
and beyond.
Partial
Competitors may make investments to enhance
their customer service, but SwissOne has a
distinct advantage due to its longstanding
reputation.
Yes
SwissOne has put systems in place to
provide consistent and outstanding
customer experiences and places a
high value on customer service.
Yes
Distribution Network and Retail
Presence
SwissOne is well-represented
in high-end retail
establishments and has a
vast distribution network.
Yes
SwissOne can connect with a
huge consumer base and raise
brand awareness thanks to the
extensive distribution network.
Yes
Access to high-end retail
establishments is highly
uncommon and provides
SwissOne a competitive
advantage.
Partial
Rivals can expand their distribution networks,
but connecting with high-end shops may be
difficult.
Yes
SwissOne has successfully managed
its retail alliances and distribution
network, giving it a competitive edge in
terms of market reach.
Yes
Manufacturing Expertise and
Quality Assurance
SwissOne's manufacturing
know-how ensures that the
chocolate it produces is
always of the highest calibre.
Yes
Manufacturing knowledge
helps produce premium
chocolates that meet customer
expectations.
Yes
SwissOne's competence in
chocolate production is
uncommon, especially when it
comes to premium,
handcrafted goods.
Partial
Competitors may be able to manufacture
products, but it will be difficult to match
SwissOne's degree of fine craftsmanship and
quality.
Yes
To ensure consistency and perfection
in its chocolate products, SwissOne
has invested in creating and optimising
its manufacturing processes.
Yes
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11. INDUSTRY ATTRACTIVENESS
ANALYSIS – 6 FORCES FRAMEWORK
FORCES INTENSIT
Y
RATIONALE
Threat of New Entrants Medium Economies of scale, brand loyalty, and well-established distribution
channels are entry barriers in the chocolate sector that present difficulties
for newcomers.
Bargaining Power of Suppliers Medium The bargaining power of cocoa bean and ingredient suppliers in the
chocolate industry ranges from moderate to low, depending on the
availability and uniqueness of the ingredients.
Bargaining Power of Buyers High Large merchants have a lot of negotiating power in the chocolate sector
since they may set terms, demand discounts, and dictate where products
are placed.
Threat of Substitute Medium Alternative confectionery and healthier snack options pose a moderate
threat to the chocolate sector, but its distinctive appeal and indulgence
component offer some protection.
Competitive Rivalry High Intense competition, pricing competition, differentiation tactics, advertising
and promotion initiatives, and ongoing product innovation are characteristics
of the chocolate sector.
Industry Profitability Medium Effective competition management, price strategies, innovation, supply
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12. Thank you
Thanks to your commitment and strong work ethic, we
know next year will be even better than the last.
We look forward to working together.
Contoso
sales@contoso.com