Are Americans ready for healthy dark

chocolates:
MONTREAUX CHOCOLATE USA
Group 4
Alok A Jahagirdar
Ankur Chugh
Rohan Gupta
Rohit Deo Shrinet
Shiven Kalelkar
Vivek Agarwal

IIM Calcutta

THE SITUATION

Apollo acquires rights to Montreaux for

America on June 2011
Consumer Food Group (CFG), a
subsidiary, forms Montreaux USA
Andrea Torres, director of new
development, is faced with multiple
decisions

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DILEMMAS
The Brand name puzzle
Rollout Dilemma
Facility confusion: To buy or not to buy
Next Steps

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IDEAL CORPORATE TARGETS

National distribution of Montreaux

product line
$115 million in annual sales by 2015
0.60% market share

Top 25 in revenue

Acceptable hurdle rate of $30MM

Needed for full national rollout

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BRANDING
1. Apollo Foods: is a credible name in confectionery
business in USA but it never sold chocolates. For
customers It will be challenging to associate Apollo with
chocolate.
2. Montreaux: No Brand building for Apollo.
3. Healthy Cravings: an altogether new brand name.

The packaging should display key product

messages and be eye catching for the consumer
Use Apollopouch
Reusable
brandtoasallow
a point
portion
of parity.
control and using for later.
Use of brightly
Attribute
Healthcolored
benefitsfruit colors to signify different flavors
Go with pouch/bag-provided
Incorporating
Swiss heritage with
for chocolates
market trends.
,

BRANDING
Apollo healthy cravings

A swiss montreaux product

Rollout Dilemma
Options

Cons

Pros

Bases II testing is extremely

time and resources consuming.
Recommend Risk of possible competitor
Low Risk;
further testing entering the market.
More insight before launch.
Select test
Market

Signal for competitors to move

quickly.

Regional
Rollout

There is no city which is

complete representative of US
consumer population for this
product.

National
Rollout

High Risk - Higher Capital

Investment.

They don't have to invest in the

production facility. They can use
existing set up (R&D) to launch.
Less potential of damage to brand
equity;
Lower scale so risk associated with
the rollout is less.
Quick move to market;
Maximum benefit from innovative
offering; First mover advantage
Market capture; Counter the
competition; Strategic sense.
8

In-house Production v/s

Imports
1.

Our suggestion In-House Production Facility

2.

Easy to scale up production.

3.

Absence of in-house production in U.S could necessitate

setting up a production facility overseas, such as in
Europe.

4.

Can avoid additional costs which would be incurred in

imports .

CALCULATING PROJECTIONS - METHODOLOGY

Calculated possible sales scenarios using

methodology formulas

Market-adjusted trial rates, repeat volume, etc.

In total there are 27 Possible Scenarios
Determined sales volumes for above scenario

Combination of three factors

Awareness type

ACV type

Marketing campaign effectiveness

Market reach effectiveness

Product quality

Repeat rate of consumer

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Results

Best case scenario v/s worst case scenario -$42.39 Mn

v/s $22.35 Mn. Exhibit 5 Purchase volume estimate
using Bases II testing.
The hurdle rate of $ 30 Million is met , but the corporate
goals are overly aggressive .

11

Existing Positioning Map

12

Suggestions to Reach Corporate Targets

The segmentation of the Market can be improved by dividing the market in to
following segments :
Healthy eating
Gifting
Taste requirement
The company can increase its sales by targeting additional segments such by
focusing on the needs of men:
Looking at developing a product which is affordable and convenient and packaged into
smaller sized packs of 0.25 to 0.6 oz.
Additionally, company should look at Affordable premium opportunity to provide
higher quality product to mass market.

13

SUMMARY

Market goals

Acquire manufacturing capabilities

Montreaux USA marketing plan

Resegment and target

Product specifications

Nielsens 12 Success Factors

Accomplished national rollout

Pouch
70% Premium Cocoa

Introducing Apollo
Healthy Cravings Filled
with happiness and good
health

American credibility and Swiss heritage

Sub-brand of Apollo
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