Group 5 - Montreaux Chocolate

 Apollo Foods, a California based, global consumer packaged goods powerhouse, offers portfolio of
brands, manufactured confectionary, biscuits, snacks and reported revenue of over $54.4 billion 2011.
Subsequently, acquired exclusive rights to manufacture and distribute Montreaux chocolate from
Montreaux chocolate S.A. (Switzerland)
 Apollo has been trying to establish itself in the US market but has not been able to establish itself but
sets following goals for its Subsidiary Montreaux chocolate USA:
 National Distribution for new Montreaux product line
 $115 million annual sales
 Be in top 25 in revenue (0.60% Market Share)
INTRODUCTION & About Case Study

BACKGROUND
THE BOOMING DEMAND FOR
HEALTHY CHOCOLATES
Based in years 2011-12, case shows that consumer’s focus on fitness and health had sharpened over the past 3 decades and there
was a shift in the consumer market toward healthy products like dark chocolate.
Chocolate was the most lucrative segment of confectionery market accounting for more than 50% of the markets total value.
The US Chocolate market was expected to grow at 2% through 2015.
To tap on this huge potential in Healthy Chocolate Segment, Apollo-Montreaux partnered with Nielsen BASES, a multifaceted
marketing consultancy, to quantitatively assess and optimize the new dark chocolate initiative.
After a rigorous product development process, the variant that stood out was 70% cocoa dark chocolate with Pomegranate.
Moreover, Apollo’s competitor is also working similar iterations of dark chocolate with fruit and the two products might in later
stage fight for aisle domination.
Consumer Competito Market
r
With fifteen months past since acquiring rights for Montreaux Chocolates and after
going through a sophisticated product development process, Apollo’s New Product
Development Director still finds herself in dilemma as to how should the brand
approach the American Market that shows positive characteristics towards Dark
Chocolates and expand the brand portfolio to increase market share in confectionery
segment.
THE KEY ISSUE

CONTRIBU
 Time Constraint and Risk of Competition
 Credibility Issues: Unfamiliarity of the Montreaux in the US

Market
TING
 Developing and deciding on the key ingredients of the product
(trade off between taste and health benefits) ISSUES
 Product Formulations, in regards to packaging and branding
With just Average Product attribute ratings and scope for better
forecasting by further product testing, Apollo’s management need to
decide what approach to take up in regards to launching a new
product in Dark Chocolates Segment in USA Markets.
Should the current product and branding be introduced to the market

or should product be refined and retested before introduction ?
Exhibit 4
DECISION PROBLEM SHOULD APOLLO GO ALL GUNS BLAZING WITH

MONTREAUX CHOCOLATES?
1. Should the product be further tested?
2. Should product be rolled out Region/Nation Wide in “as is” condition?
3. Should product be rolled out in selected markets?
GENERATING
ALTERNATIVES
CONSTRAINTS Alternative Return on
Investment
Change in
Customer
Time &
Competition
Preference
• Cost & Pricing
Nationwide roll out with
aggressive marketing strategy Favorable Less Favorable Favorable
• Profitability & Market Share
• Competition & Time Constraints Further Testing of the Product Less Favorable Favorable Less Favorable
• Consumer Preference
Roll-Out in Selected Markets Less Favorable Slightly Less Favorable
to observe Consumer Behavior Favorable
CONSTRAINTS &
ANALYSIS
PROPOSED
- Based on our analysis, Apollo should launch Montreaux dark
SOLUTION
chocolate in a nationwide roll out in “as is” condition and
consequently based on Voice Of Customers and Voice Of
Business keep trying iterations on the product over a period
of time.
- The brand should be named “Montreaux by Apollo” so that

American audiences have a brand familiarity and regions
with European citizens might bring about some boost in sales,
as we know America has a very robust international diversity.
- Apollo’s wide sales and distribution network that was

managed by Consumer Foods Group has the capability to
manage distribution and supply chain for the product.
- This will be a great opportunity of beating the competition

and make some strong market hold in the segment and
crossing hurdle rate.
Sales Volume Estimation for Year 2013 based on Exhibit 5
Assumptions: Average Product, Medium Support and
ACV
Sales Projections for
2014 & 2015
IN $MM YoY Sales Projections

80
70
60
50
40
30
20
10
0
2013 2014 2015
YoY Sales Projections

THANK
YOU

Group 5 - Montreaux Chocolate

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 Apollo Foods, a California based, global consumer packaged goods powerhouse, offers portfolio of

INTRODUCTION & About Case Study

THE KEY ISSUE

 Credibility Issues: Unfamiliarity of the Montreaux in the US

Should the current product and branding be introduced to the market

DECISION PROBLEM SHOULD APOLLO GO ALL GUNS BLAZING WITH

2. Should product be rolled out Region/Nation Wide in “as is” condition?

3. Should product be rolled out in selected markets?

- The brand should be named “Montreaux by Apollo” so that

- Apollo’s wide sales and distribution network that was

- This will be a great opportunity of beating the competition

IN $MM YoY Sales Projections

YoY Sales Projections

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