Submitted by: Submitted by helpmepass
Views: 493
Words: 1123
Pages: 5
Category: Business and Industry
Date Submitted: 04/12/2014 01:23 PM
Problem Statement
Apollo Foods, a global consumer packaged-goods firm, has obtained the rights to manufacture and market the well-known European chocolate company, Montreaux, in the United States. Andrea Torres is presented with the challenging situation of introducing a new product and obtaining presence in the lucrative market. The situation is intensified because a competitor is also extremely close to launching a very similar product into the market.
Torres must be confident in her decision to either further test the product, pursue test marketing in selected markets, launch the product nationally, or launch the product through a regional rollout plan. In addition to the decisions just mentioned, Torres must also be prepared to address the topics of a product name and channels of distribution. When evaluating the possible options, Torres must be confident that her ultimate decision will enable Apollo to meet its three year objectives (see exhibit 1).
Analysis
Consumers in the United States have begun to increase their awareness on fitness and health. Montreaux Chocolate USA sought this opportunity to introduce a dark chocolate with health benefits and a fruity twist. Montreaux was not the only company who sought to take advantage of the emerging health trend in the U.S., as many of its competitors were introducing new products as well. In an effort to launch a successful new product and capture greater market share, Apollo Foods partnered with consulting company BASES to complete research.
The BASES concept test revealed that the 5-ounce stand-up pouch (with chocolate squares) offered the greatest revenue potential when compared with the 3.5-ounce bar. Although chocolate being sold in anything greater than 3.5-ounces is expected to have the slowest growth (7.6%), snack size chocolate is expected to have the second highest (10.8%) of all seven product segments. The 5-ounce stand-up pouch reconfirmed that healthy messaging was perceived by...