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ENGL 419 Chapter Notes -Aeration

Course Code
ENGL 419
Padma Patil

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Montreaux Chocolate Case Study
Thursday, September 18, 2014
11:20 AM
Apollo has 4 branches, one of which is CFG (Confectionary Food Group).
Montreaux wants to have a relationship with Apollo So it can break into the US market.
oCFG bought the rights to Montreaux and Montreaux wants to use this in order to
accomplish their market breakthrough.
oCFG pulled in $19.1 billion in revenue in 2011, about 1/3 of Apollo's total net
David Raymond is head of Montreaux Chocolate USA, but our focus Is on Andrea -
On December 10, Andrea is going to present how the American launch is going to take
David wants Montreaux Chocolate to be nationwide and pull in abut .6% market share;
be in the top 25 sellers of chocolate.
Andrea has a few things she needs to focus on to achieve her goals:
oMarket segments
oProduct segments
Summary of confectionary market in the US
Premium chocolate breaking into mass market
Dark chocolate's flavanols antioxidant benefits highly regarded
Lower calorie options such as aeration and low-cap booming
Bigger, economic, sharable pouches more popular
Shareability, portion control, saving for later clearly labeled
Increased prices due to increased commodity costs
94.4% of the chocolate market is made up of 4 of the 7 segments:
1. Bar/bag/box > 3.5 oz.
2. Seasonal
3. Bar/bag/box < 3.5 oz.
4. Snack size
Confectionary market $37B growth of 2.8% from 2007-2011
Chocolate market $17B growth of 1.9% since 2010
Lancaster leads while Fisher's is a good market competitor. Apollo is in confectionary but
not in chocolate per se, but seeing as chocolate is HALF The confectionary market, Apollo
wants to get up to Fisher's level.
Consumer Attitudes
92% of confectionary-consuming adults in 2012 ate chocolate
8 pieces per month of chocolate was the average consumption - needs clarification
Females are 94% likely to eat chocolate vs. males at 90%
45-64 age range is more likely to eat chocolate
Higher income households go for boxed usually
As one ages, the likelihood of purchasing dark chocolate increases
Sale chocolate, especially premium, will attract older consumers
Women buy chocolate as a reward for themselves
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