Marketing Analysis and Strategy for Crazy Chocolates in the US Market

This presentation provides a detailed analysis of the US chocolate market and outlines a marketing strategy for Crazy Chocolates, a new premium chocolate product. It includes market trends, customer preferences, segmentation, targeting, positioning, and the marketing mix. The presentation also highlights the opportunities and challenges in the market.

Principles of
marketing and
communications in
digital world
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Product Description: Crazy
Chocolates
▸ Crazy Chocolates is a new premium
chocolate product to be launched in the
market of USA.
▸ The brand will launch five types of
chocolates, namely milk chocolate, dark
chocolate, fruits and nuts, coffee and caramel
chocolate and chocolate wafers.
▸ It aims to compete with the premium
chocolate makers like Hershey’s, Ghirardelli,
Godiva and Dove.
▸ The chocolate bars and squares will have a
Crazy chocolates logo on it and will be
distributed through the prominent

Market Analysis for
Crazy Chocolates
3

Key Market Trends
▸ Premium and dark chocolates have a
strong growing trend.
▸ Innovative and unique products are more
popular and a surviving trend.
▸ Changing tastes of the global consumers
▸ Increasing exports and imports of the
chocolates have expanded the market
▸ Increasing demand for seasonal
chocolates
▸ Global supply chain
▸ Lower prices and increasing disposable

US Chocolate Market, by Product type
Figure 1: US Chocolate market, by product type, 2017
(Source: Mordorintelligence.com 2018)

Market Growth Forecast
Figure 2: US Chocolate market, by product, 2014-2025 (USD Billion)
(Source: Grandviewresearch.com 2018)

Key competitors in the US chocolate market
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Figure 3: Market share of the leading chocolate companies in the United
States in 2017
(Source: Statista.com 2018)

Customer Preferences
▸ Dark chocolates
▸ Chocolates containing fruits and nuts
▸ Organic chocolates
▸ Vegan chocolates
▸ New innovative flavors
▸ Chocolate based confectionaries

Issues and opportunities in the US Chocolate
Market
Issues
▸ Rising and fluctuating
prices of raw materials
▸ Global supply chain and
thereby increasing
uncertainty and irregularity
in supply
▸ Degrading quality of cocoa
beans
▸ Advancement of
technology for chocolate
production
▸ Growing demand for fusion
confectionary products,
like bakery items is
affecting the demand for
Opportunities
▸ Increasing demand from
growing population
▸ Innovative and unique
product with attractive
brand name, logo and
packaging
▸ Handmade and innovative
varieties
▸ Chocolate franchise shops
with a café set up, music,
and gift shop for attracting
customers
▸ Investing in types like
organic, vegan, dark and
chocolate with toys

Segmentation,
Targeting and
Positioning

Market Segmentation
▸ Demographic
segmentation for
Crazy Chocolates
includes:
▸ Age: 4 years and
above
▸ Gender: Male,
Female and others
▸ Income: Monthly
$500 and above
▸ Nationality: All
▸ Ethnicity: All
▸ Psychographic
segmentation for
Crazy Chocolates
includes:
▸ Health conscious
consumers
▸ Consumers
preferring organic
chocolates
▸ Consumers
preferring premium
chocolates

Targeting by Crazy Chocolates
▸ Crazy Chocolates will target the
following customer segments:
▸ People and children of all ages and
gender
▸ Consumers with a monthly income
of $500 and above
▸ Health conscious consumers
▸ Consumers preferring convenience
while shopping

Positioning by Crazy Chocolates
▸ The USP of Crazy Chocolates will
be:
▸ Nutritional value for all age groups
▸ Attractive packaging and logo
▸ Surprise shapes and sizes in each
different packets of the countlines
to attract the kids
▸ New flavors like coffee-caramel to
offer innovative chocolates

Marketing mix for
Crazy Chocolates

Product
▸ Standard chocolate bars of 1.55 ounce and
3.17 ounce will be manufactured in all the
categories.
▸ Square countlines will be manufactured in
the packets of 20 counts for the fruits and
nuts, coffee and caramel, and chocolate
wafers varieties.
▸ Colorful packets will be produced in every
Christmas.
▸ For the milk and dark chocolate, it will
produce packets of 20 units with different
shapes, which will be different in each

Price
▸ Lower than the standard price will be
maintained to capture the market.
▸ Crazy Chocolates will adopt the cost
leadership strategy for market entry.
▸ The 1.55 ounce bar of Crazy Chocolates
will be priced at .99 cents and the 3.17
ounce bar will be priced at $1.29.
▸ The countlines packets will be priced at
$2.29.

Promotional Strategy
▸ Print and Video Advertisements will be
launched in:
○ Social media
○ Television
○ Radio channels
○ Newspapers
○ Fliers
○ Hoardings and billboards
▸ Free gift
○ For the first month, each purchase of the chocolate will get a
free sticker of superheroes to attract the children
○ There will also be ‘Buy 2 Get 1 free’ offer for the first month.
▸ Direct sales
○ Sales person in the supermarkets and grocery stores will be
appointed to ask the customers to try out a sample
chocolate and inform them about the products.

Place (Channel or Distribution
Strategy)
▸ Supermarkets and grocery retail chain
stores
▸ Convenience stores within the cities
and around the highways

References
▸ Armstrong, G., Kotler, P., Harker, M. and Brennan, R., 2015. Marketing: an
introduction.
▸ Euromonitor.com, 2018. Chocolate Confectionery in the US. [online]
Euromonitor.com. Available at: https://www.euromonitor.com/chocolate-
confectionery-in-the-us/report [Accessed 18 Dec. 2018].
▸ Franchisehelp.com, 2018. Chocolate Industry Analysis 2018 - Cost & Trends.
[online] Franchisehelp.com. Available at:
https://www.franchisehelp.com/industry-reports/chocolate-industry-analysis-
2018-cost-trends/ [Accessed 18 Dec. 2018].
▸ Gengler, C.E. and Mulvey, M.S., 2017. Planning pre-launch positioning:
Segmentation via willingness-to-pay and means-end brand
differentiators. Journal of Brand Management, 24(3), pp.230-249.
▸ Grandviewresearch.com, 2018. North America Chocolate Market Share |
Industry Analysis Report, 2014-2025. [online] Grandviewresearch.com.
Available at: https://www.grandviewresearch.com/industry-analysis/north-
america-chocolate-market [Accessed 18 Dec. 2018].
▸ Huang, R. and Sarigöllü, E., 2014. How brand awareness relates to market
outcome, brand equity, and the marketing mix. In Fashion Branding and
Consumer Behaviors (pp. 113-132). Springer, New York, NY.
▸ Mordorintelligence.com, 2018. United States Chocolate Market | Growth |
Trends | Forecast (2018 - 2023). [online] Mordorintelligence.com. Available at:
https://www.mordorintelligence.com/industry-reports/united-states-chocolate-19

References (Contd.)
▸ Naprta, M., 2015. Discussing chocolate market trends. Agro FOOD Industry Hi
Tech, 26(1), pp.4-6.
▸ Pandi, S. and Watson, D., 2018. Transformational Change and the Implications of
Food Safety: A Case Study of a Greek Chocolate Manufacturer. Acta Scientific
Nutritional Health, 2(7), pp.16-24.
▸ Pyo, S., 2015. Integrating tourist market segmentation, targeting, and
positioning using association rules. Information Technology & Tourism, 15(3),
pp.253-281.
▸ Schlegelmilch, B.B., 2016. Segmenting Targeting and Positioning in Global
Markets. In Global Marketing Strategy(pp. 63-82). Springer, Cham.
▸ Statista.com, 2018. U.S. market share of chocolate companies, 2017. [online]
Statista.com. Available at: https://www.statista.com/statistics/238794/market-
share-of-the-leading-chocolate-companies-in-the-us/ [Accessed 18 Dec. 2018].
▸ Stead, M. and Hastings, G., 2018. Advertising in the social marketing mix:
getting the balance right. In Social Marketing(pp. 29-43). Psychology Press.
▸ Tanner, J. and Raymond, M., 2015. Principles of marketing. University of
Minnesota Libraries Publishing.
▸ Thompson, A., 2018. Report: U.S. chocolate market to surpass $20 billion by
2025. [online] Candyindustry.com. Available at:
https://www.candyindustry.com/articles/88102-report-us-chocolate-market-to-
surpass-20-billion-by-2025 [Accessed 18 Dec. 2018].
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