Theo Chocolates in North America

This article discusses the strategies used by Theo Chocolates to establish itself in North America and capture the market. It explores the success and challenges of supporting farmers and increasing perceived value of chocolate. The article also provides evidence of success and alternative solutions.

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Contents
INTRODUCTION:..........................................................................................................................3
STRATEGIES FOR THEO CHOCOLATE IN NORTH AMERICAN MARKET:......................3
CONCLUSION:..............................................................................................................................5
REFERENCES................................................................................................................................6

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INTRODUCTION:
Theo Chocolate serves as a chocolatier in Washington, United States. This chocolatier is the
first certified cocoa producer in America. The business used many marketing strategies to gain a
competitive edge and enhance the market. Theo Chocolate is famous for its quality products and
reasonable prices, and it has catered an excellent place in customer's hearts as it is involved in
many kinds of social services. Theo Chocolate has the equation that “Without having
amazing products, nothing else matters”.
STRATEGIES FOR THEO CHOCOLATE IN NORTH AMERICAN
MARKET:
Theo Chocolate has covered a massive market in many countries, and it wants to establish itself
in North America. This company has catered the market using many strategies. The tag line
given by Whinney says “cultivation and support of sustainable livelihoods for people” of
WBR with Theo Chocolates suggests that it believes in the sustainability ("Consumer
Sustainability Perceptions In Cocoa And Chocolate Production", 2018).
Some of the main strategies that Theo Chocolates used are:
 Train, educate and provide resources to farmers for producing quality cocoa, to make
chocolate out of cocoa.
 Less pricing is offered.
 Variety of product line.
 Donations
 Food Shows

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 Special events
 Educational tours for potential people (Butcher & Wilson, 2014).
Best Suited Solution: As per the evidence are given in the case study, Theo Chocolates best-
suited solution from the above-given strategies for capturing the market is ‘SUPPORTING
FARMERS’. Theo has always supported its farmers by providing proper tools and techniques
for producing the best quality cocoa. Theo educated the farmers in knowing the best
fermentation process so that they may yield the best quality and should get the best prices of
their products. This includes the Pricing Policy of the Theo chocolates also, and for this, they
have presented their pricing grid to their customers, exporters, suppliers to make them know
about its pricing detailed information. Theo Chocolates have always tied to the prices that offer
good quality and that the customers are willing to pay.
Theo has always supported its farmers, and through this, it has captured a good market in the
places it is producing and selling. Theo has gained people's interest as they wanted to pay for a
good quality cocoa bean and that is what Theo is doing.
Evidence of Success:
1. Theo has Created Market Attention: Theo has created market attention through its
strategy of Supporting Farmers by is pricing policy; it can also very easily capture the
market area of North America.
2. Suitability: Theo quality premiums are substantially higher than the world market
price, and exceed the premiums for organic and fair-trade cocoa by more than 6 x.
Significant price premiums based on quality provide a real incentive for farmers (Theo
Chocolate, 2013).

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Alternative Solution: Apart from the above-given solution, there is one more solution that could
be used to develop the market in the North American region. As per the evidence of the case
study the other option that Theo Chocolates are successful using is “Increased the Perceived
Value of Chocolate”. The company offered a tour of its factory in just $7 fee, this one hour tour
offered the visitors to know about the history of the company, farming techniques to get the best
cocoa and ecology and politics of Chocolates and they informed visitors about the social and
environmental issues related to the making of the chocolates.
Evidence of Success:
1. Increased Customer Base: the people who visited the factory also get a chance to taste
the sample of the chocolates. Hence, it also gives an opportunity to the chocolate
company to increase its customers. If the people take the tour of the company they can
surely know more about the company and getting to taste the products will increase in the
customers.
This solution is not the best because it may have some challenges: Theo Chocolates has
captured the market in many countries with their touring strategy. It has proved that making
people visit their factory enhances their market share, but it is not necessary that it could create
the same market pace in North America. Therefore, it would be a challenge for the Theo
Chocolate Company.
CONCLUSION:
It is now evident that with the help of its previous strategies Theo Chocolates can easily cater to
a good and attractive market area in North America. As already they capture a good market place

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in many countries, they can also obtain a huge market in North America by creating market
attention through its increased perceived value strategy and the supporting farmer’s strategy.
REFERENCES
Butcher, A., & Wilson, P. (2014). Theo Chocolate—Doing Well By Doing Good. Journal Of
Case Studies, 32(1), 19-36.
Consumer Sustainability Perceptions In Cocoa And Chocolate Production. (2018). Chocolate
Consumer Survey, 1-10. Retrieved from
https://cocoa-alliance.org/wp-content/uploads/2018/12/FCA-Consumer-Survey-May-
2018.pdf