Montreaux Chocolate Harvard Case Solution & Analysis

Analysis of the opportunities Montreaux Chocolate based on current test market results

To continue with the opportunities Montreaux Chocolate would have, the industry analysis must be evaluated. The chocolate industry enjoyed the growth around 19% from fiscal year 2007 to 2012 and growth was possible because of the chocolate demand. This demand was attributed from the change in the taste. On the other hand it was projected that the chocolate industry would grow 15% from 2012 to 2017. Furthermore, a research was conducted for the prediction of the future demand that shows that, demand for Cocoa would increase 30% and this demand would surpasses the supply that would lead towards an increase in the price of Chocolate.

The exhibit given in the case, lists the trial purchase that incorporates the probability of the consumer that would definitely buy the chocolate from Montreaux and this is around 23% and those who has the tendency to buy, but not definite about it is around 40% this study incorporate and resulted after surveying the 120 households of the USA. The maximum unit that would be repurchased by the single household is 4, that have the tendency to repurchase is around 28%, which is lower, 33% which is moderate and 38% that is a high quality chocolate. The trail rate resulted from the calculation is around 30.4%.

The all commodity value or ACV is the distribution of the chocolate in showing the dollar percentage amount of the volume that is sold already in the market. The all commodity products is ranged between 60%, 65% and 79% that represents the low, medium and high volume of sales. The retail margin on sales in around 35% that is given to the retail stores. The total trial household is around 3.3 million US dollars. The total repeat purchase order in terms of the US dollar is around 24.36 million.

Further analysis was made on consumer awareness with respect to each product category, and this awareness survey incorporates that Montreaux Chocolate would gain the lower support of around 14%, on medium it would gain 17% support from customers and high level Montreaux would gain support from customer around 20%. This support incorporates the all commodity volume and would result in total purchases that would be around 24.36 million this purchase would be made on the retail price of %4. 49. The sales value would be around 115 million US dollars that incorporate in the sales volume of around 74.8 million US dollars.

In accordance with the above analysis, Montreaux should go for the launch of this new product at national level as all the tests were showing the accurate results. The further testing of the product must not be continued and Montreaux has to go with the same product testing. It is because, further testing is required more expenses and it would also consume the time. The existing testing is already showing the positive results.................

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