SWISSONE VS. TOBLERONE ENTIRE CASE STUDY

1. SWISS CHOCOLATE CHALLENGE:
SWISSONE VS. TOBLERONE CASE
Name: Macban Lopes
Date: 4th February 2024

2. INTRODUCTION
Cocoa Luxury SA, founded by Vernon Stuber, presents the SwissOne brand to revive the tradition of premium
Swiss chocolate. Setting itself apart, SwissOne focuses on the luxury market, boasting higher cacao and lower
sugar content than competitors.
The company champions a sustainable supply chain aligned with the Fairtrade Max Havelaar Foundation,
ensuring fair compensation and excellent working conditions for cocoa growers.
SwissOne's product line includes three 100g chocolate bars: SwissOne Milk (48% cacao), SwissOne Nougatine
(48% cacao with honey and almonds), and SwissOne Dark (70% cacao).
Key differentiators for SwissOne are its emphasis on high cacao, absence of artificial additives, premium
ingredients, and commitment to sustainability.
Positioning itself as a luxury brand, SwissOne appeals to customers valuing quality and ethics, offering an
artisanal alternative to mass-produced chocolates.

3. SITUATIONAL ANALYSIS (5Cs)
COMPANY CONTEXT CUSTOMER COMPETITOR COLLABORATOR
Renowned luxury chocolate
brand, Swiss One, is
celebrated for its use of
quality ingredients,
innovative flavors, and
exceptional craftsmanship.
The company is dedicated to
providing clients with a
luxurious and delightful
chocolate experience,
building a strong brand
image based on the delivery
of exceptional chocolates.
The increasing demand
for organic, sugar-free,
and healthier chocolate
options reflects a
growing consumer
focus on health.
Simultaneously, there is
a rising interest in
unique flavors and
personalized chocolate
experiences.
SwissOne's research
identifies its target
customers as discerning
individuals who value
luxury goods and are
willing to pay a premium
for higher quality. These
customers appreciate
SwissOne's commitment
to craftsmanship,
heritage, and the use of
premium ingredients.
Facing competition
from established
brands like Godiva,
Lindt & Sprüngli,
Toblerone, and
Neuhaus, SwissOne
aims to differentiate
itself and capture a
significant market
share in the luxury
chocolate segment.
SwissOne collaborates with
premium dairy product
suppliers, cocoa bean
producers, and other
partners to ensure the
quality of their chocolates.
Additionally, partnerships
with distributors, merchants,
and online platforms
enhance accessibility.
Collaborations with upscale
lodging facilities, commercial
airlines, and gift stores
further contribute to brand
visibility and accessibility.

4. Political:
Regulations on food safety, labeling, and
packaging, as well as changes in trade
policies and taxation, can influence the
chocolate market's dynamics.
Economic:
Economic variables such as disposable
income, consumer purchasing habits,
inflation rates, and exchange rates play a
pivotal role in shaping the demand for
upscale chocolates. Economic downturns
may affect the sales of luxury goods like
Swiss One.
Sociocultural:
Consumer preferences for chocolate are
influenced by tastes, cultural customs, and
lifestyle choices. The rising popularity of
fair trade and sustainable practices can
impact consumer attitudes and purchasing
decisions.
Technological:
Innovations in manufacturing processes,
packaging, and logistics can improve
productivity and reduce costs. Swiss One
can leverage digital marketing and e-
commerce platforms to engage directly
with customers and expand its reach.
Legal:
Adherence to regulations related to
employment, intellectual property,
labeling, and food safety is crucial for
maintaining brand reputation, consumer
trust, and ensuring product quality.
Environmental:
Growing consumer emphasis on eco-
friendly packaging, sustainable sourcing of
cocoa beans, and carbon footprint
reduction is influencing the chocolate
industry. Swiss One's commitment to
sustainable practices can enhance its
reputation and attract environmentally
conscious clients.
SITUATIONAL ANALYSIS (PESTLE)
Refer appendix:

5. Market Concentration Competitive Landscape Consumer Preferences: Sourcing and
Sustainability:
Market Dynamics and
Challenges:
Regulatory
Environment:
The global chocolate industry is
mature, with key players such as
Mars, Ferrero, Mondelez
International, Nestlé, and The
Hershey Company dominating about
30% of the market share.
In Switzerland, the chocolate market
is also concentrated, with major
players like Lindt & Sprüngli, Nestlé,
Mars, Ferrero, Mondelez
International, and The Hershey
Company holding over half of the
market share.
SwissOne competes in a market
where multinational companies
dominate, and artisanal chocolate
represents only about 5% of the Swiss
chocolate market.
SwissOne positions itself
as an artisanal and
premium chocolate
brand, focusing on
quality, sustainability,
and traditional Swiss
chocolate values
It differentiates itself
through its commitment
to using more cacao,
less sugar, and
sustainable sourcing. Its
unique product shape
and commitment to
ethical practices
contribute to its
distinctiveness.
Swiss consumers, who
are the primary target for
SwissOne, demand
quality, transparency,
and sustainable practices
in chocolate products.
Taste remains a key
factor in chocolate
purchase decisions, with
a preference for milk and
dark chocolate.
Fairtrade certification
positively impacts brand
image, and consumers
are willing to pay more
for products with such
labels.
SwissOne has established
a sustainable supply
chain aligned with the
Fairtrade Max Havelaar
Foundation, providing
cacao farmers with fair
wages and excellent
working conditions.
The company uses
biodegradable packaging,
reflecting its
commitment to
sustainability.
The chocolate industry is
vulnerable to price
volatility, sourcing risks,
and ethical concerns
related to cacao bean
production.
Consumer preferences
are shifting towards dark
chocolate due to health
considerations,
presenting an
opportunity for
SwissOne, which offers a
Dark chocolate variant
with 70% cacao.
Switzerland, not part
of the EU but a
member of EFTA, has
stringent regulations
regarding the quality
and safety of
imported cacao.
Swiss consumers also
value additional
certifications like
Fairtrade and
organic.
In summary, SwissOne navigates a competitive landscape by emphasizing quality, sustainability,
and unique product offerings, aligning with evolving consumer preferences and regulatory standards.
ANALYSIS AND INSIGHTS FROM PRICING & MARKET SHARE

6. In the face of rising competition and shifting consumer preferences within the chocolate industry, SwissOne is
confronted with the challenge of preserving its status as a premium brand and ensuring sustained profitability.
The evolving market dynamics and changing consumer tastes are impacting the company's market share and
growth prospects, prompting the need for strategic initiatives to secure its position in the industry.
PROBLEM STATEMENT
Intense Competition: The chocolate industry is fiercely competitive, with numerous established and new players vying
for consumer attention. SwissOne must formulate distinct strategies to stand out in this crowded market and retain its
customer base.
Changing Consumer Preferences: Evolving consumer preferences include a growing demand for unique flavors, organic
and sustainable options, and personalized chocolate experiences. SwissOne needs to adapt its offerings to align with
these changing preferences, ensuring relevance and attracting new customers.
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..
JUSTIFICATION FOR THE PROBLEM STATEMENT

7. INSIGHTS
Intense competition within the
Swiss chocolate market
emphasizes the importance of
innovative product development
and differentiation.
Cocoa bean suppliers can
influence the market by
emphasizing the importance of
sustainable sourcing and
maintaining strong supplier
relationships.
Consumers wield a moderate
level of negotiating power,
prompting businesses to offer
unique and superior products.
New entrants face significant
barriers to entry, requiring
substantial investments in
branding, distribution, and
chocolate production expertise.
The industry's moderate
profitability is primarily driven
by the strong reputation of
Swiss chocolate and the demand
for high-quality products.
SwissOne Chocolate
distinguishes itself in a segment
that values fine and expensive
chocolate by employing a
premium pricing strategy.
A few major players, including
Mars, Mondelez International,
Nestlé, Ferrero, and The
Hershey Company, dominate a
significant portion of the Swiss
chocolate market.
Swiss enterprises like Lindt &
Sprüngli, along with smaller
businesses, command a
considerable market share due
to their traditional
craftsmanship and well-
established reputation.

8. Short-Term Objectives Long-Term Objectives
- Strengthen Brand Distinction
- Broaden Distribution Networks
- Enhance Operational Cost Efficiency
- Implement Sustainable Sourcing Practices
- Foster Consumer Engagement and Loyalty
- Foster a Culture of Continuous Innovation
OBJECTIVES

9. ALTERNATIVES IDENTIFICATION, EXPLANATION & RATIONALE
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.
ENHANCING CUSTOMER ENGAGEMENT
Enhancing customer involvement strengthens SwissOne's
market position by fostering brand loyalty, encouraging
repeat business, and generating favourable word-of-mouth
Utilize client information and preferences to develop
targeted promotions, recommendations, and loyalty
programmes to implement a personalized 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 environmentbut 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.

10. RECOMMENDATIONS & IMPACT
Customer-Centric Approach
SwissOne seeks to improve consumer engagement, raise satisfaction, and encourage brand
loyalty by applying personalised marketing methods and interactive experiences.
Competitive Advantage
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.
Increased Brand Reputation
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,
Swiss One can improve brand reputation and perception through customer involvement.
Adaptability and Feasibility
Long-Term Growth Potential
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.
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.

11. INDUSTRY ATTRACTIVENESS ANALYSIS
6 FORCES FRAMEWORK
FORCES INTENSITY 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 chain
efficiency, and brand distinctiveness are necessary for the chocolate industry to thrive
and maintain a competitive edge in the market.

12. APPENDICES

13. DETAILED SITUATIONAL ANALYSIS (PESTLE)
POLITICAL ECONOMIC SOCIOCULTURAL TECHNOLOGICAL LEGAL ENVIRONMENTAL
• The chocolate market
can be affected by
regulations pertaining to
food safety, labeling,
and packaging.
• Changes in trade
policy, import/export
laws, and taxation can
impact the price of raw
materials and market
accessibility.
• Economic variables
such as disposable
income, consumer
purchasing habits,
inflation rates, and
exchange rates can
influence the demand
for upscale chocolates.
• During economic
downturns, consumer
spending may decrease,
potentially impacting
the sales of luxury
goods like Swiss One.
• Consumer preferences
for various types of
chocolate are shaped by
factors like tastes,
cultural customs, and
lifestyle choices.
• The increasing
popularity of fair trade,
sustainable business
practices, and ethical
sourcing may influence
consumer attitudes and
purchasing decisions.
• Innovations in
manufacturing
processes, packaging,
and logistics can
enhance productivity
and reduce costs.
• Swiss One engage
directly with customers
and expand its reach
through digital
marketing and e-
commerce platforms.
•Legal considerations
encompass regulations
related to employment,
intellectual property
rights, labeling
standards, and food
safety.
• Adherence to these
regulations is crucial for
upholding brand
reputation, consumer
trust, and ensuring
product quality.
• Growing consumer
emphasis on eco-
friendly packaging,
sustainable sourcing of
cocoa beans, and
carbon footprint
reduction is impacting
the chocolate industry.
• Swiss One's
commitment to
sustainable practices
can enhance the
company's reputation
and attract clients who
prioritize environmental
considerations.

14. CORE COMPETENCY DESCRIPTION VALUE RARITY IMITABILITY ORGANIZATION
COMPETATIVE
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
10
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
COMPETITIVE ADVANTAGE USING VRIO FRAMEWORK

15. THANK YOU