Main strategies to develop a brand for a chocolate factory

in Brussels Belgium 2012

Susana Paredes

ICHEC Brussels Management School, September 2012

The objectives1. Identify and prioritize strategies to develop a

strong brand for the company2. Define customer’s profile: origin, occupation and

reason to visit Brussels3. Recognize customer’s motivations to visit the shop4. Learned about the media preference among

customers 5. Identify customer’s perception of the shop and

service

How to achieve the objectives?

Identification of customer’s profile & perception of the brand

Market research

Strategic analysis

Investigation of competitive environment and company offer

Determination of distinctive competences

Develop strategies

Consumer Market Research Results

• Tourists coming from France, Spain, USA, Germany, the UK and the Netherlands.

• Found Chocopolis by chance, while they were wandering around the city looking for Belgian chocolates

• Main source of information is internet• What they liked most of Chocopolis: chocolate

and service

SWOT Matrix ChocopolisINTERNAL FACTORS STRENGHTS WEAKNESSES

1. Central location of shop, dow ntow n Brussels nextto main touristic attactions

1. Small new company w ith 6 years in the market

2. Factory and shop located at same facility, notransportation or freezing involved 2. Limited distribution points: 2 boutiques in Brussels

3. Tradition of handmade production 3. No branding strategy

4. Online sales available 4. Actions oriented to sales rather to marketing

5. Quality product made of 100% cocoa butter 5. High debt level due to recent investment

6. Friendly and costumer oriented sales staff 6. Company has no w ebsite

EXTERNAL FACTORS 7. Building frontage is not attractive

OPPORTUNITIES1. Consumer more conscious w ith personal f inance affectsbrand loyalty

2. Seven million tourists visit Belgium every year

3. Internet leading source of information for tourists

4. Sustainability important driver in consumer purchasingdecisions

5. Emerging countries attractiveness due to increasingmiddle class disposable income and low chocolateconsumption rate per capita

6. Customization has become a leading trend inmanufacturing

THREATS1. Cocoa products w ith up to 5% of vegetal fats are considered chocolate leveling the quality of the product

2. Potential saturation of chocolate market in Western Europe and the US

3. Four companies dominate the industrial chocolate supply in Belgium4. Leading companies in the sector are multinationals w ith several years in the market

5. Competitors have developed strong brands

6. Competitors have multiple distribution channels

SO1. Special live demonstrations for tourists contacted by tour operators in their home country (S1,S6,O2)2. Target emerging eastern european countries using new distribution channels (S5, O5)3. Build brand identity based on distinctive competence (S3, O1)4.Offer customer to order online chocolate bars tailored to their own taste (S3, S4, O6)

WO1. Develop company website ( 03, W6)2. Use online marketing to build up brand awareness (O3, W3,W4)3. Renew building's frontage and exterior displays (O2,W8)4. Find commercial partners to enter eastern european markets (O5,W2)

ST1. Promote online sales in Asia and Eastern European countries (S4, T6, T2)2. Create a communication program to teach costumers about the meaning of 100% cocoa products (S3,S5, T1)

WT1. Use alternative promotional channels to engage consumers (W2,T6)2. Target niches not attended by the competitors with customized products (W3, W4,T2)3. Open a shop in Bruges (W2, T6)

Chocopolis Distinctive Competences• Preserves Belgian tradition of

handmade chocolates• High quality product• Personalized service• Taste matches for the

discerning international palate

Brand Identity Proposal

Brand Image Brand Identity Brand Position

Great flavor, beautiful shop and excellent service.

Not the biggest worldwide chocolatier, but the true Belgian flavor.

Belgian handmade chocolate, synonym of craft and quality, for the discerning international palate.

Target Market

PrimaryTourists

Consumers

Secondary• Tourists from Latin America an Eastern Europe• Retail investors • Companies • Special occasion consumers

Strategies1. Organized in two groups:

short term priory 3 years, long term 5 years

2. Oriented to target emerging markets, use alternative promotional channels and develop closer relationship with customers.

3. Tend to match internal resources to external factors

Conclusions1. Branding has become key issue to determine Chocopolis

future.2. Customers’ profile: internet savvy tourists, from France,

Spain, USA, Germany, the Netherlands and UK, whose most appreciated characteristics in a chocolate are taste, price and service.

3. Chocopolis customers’ arrived to the boutique by chance thus the need to work actions to call their attention.

4. Brand image, brand identity and brand positioning harmony.

5. Distinctive competence of Chocopolis will lead branding strategies.

6. Manage strengths to target emerging markets, use alternative promotional channels and engage consumers at a personal level.

7. Match internal resources and skills to external factors, converting weaknesses and threats into opportunities to determine permanency in the market.

Recommendations

1. Innovation2. Brand proposal economic evaluation3. Strategies could be used as framework4. Corporate analysis to develop long term

strategic plan5. Keep regular market consumer market

research6. Detailed reports for Chocopolis management

to engage

THANK YOU