Hotel Chocolat - Marketing Strategy & Communication Plan by Miriam Rodriguez Juarez

USA Marketing Strategy & Communication Plan

Miriam Rodriguez-Juarez N0709570 Word Count: 3298

Contents

Ethics Clause 1 Introduction 2 Methodology 3 Brand Story 5-15 Key Events Engaged Ethics First Attempt in USA market Income Statement Product Offering

External Business Review 16-37 UK/USA Chocolatier Competitors UK/USA Premium Gifting Competitors The Consumer UK/USA Pen Portrait Chocolate Confectionary Market PEST Analysis Ansoff Matrix Macro Trends Micro Trends

Internal Business Review 38-46 Brand Platform SWOT Analysis Primary Research Brand Ambassador Social Media presence

USA Entry Strategy 47-55 Marketing Mix - the Eight Pâ&#x20AC;&#x2122;s USA Concessions Marketing Campaigns

Bibliography, References, Illustrations

Ethics Clause I confirm that this work has gained ethical approval and that I have faithfully observed the terms of the approval in the conduct of this project. Â Signed: Date: / /

Introduction The objectives of this report is to develop a marketing and communication plan for Hotel Chocolat, that will give an in-depth exploration into the challenges and opportunities the brand face in strengthening its position within the UK market and maximising its potential to enter (re-enter in this case) the USA.

Methodology Research Focus: Brand perception of UK consumers. (Using primary research) Results analysis using marketing models PEST/SWOT/Ansoff Matrix/8Pâ&#x20AC;&#x2122;s providing insight into optimisation of the UK market and USA marketing plan. Primary Quantitative/Qualitative Methods: Online survey (137 respondents, aged 18+) In store observations. Secondary Research Methods: Online (J Waltor Thompson Intelligence, Mintel Financial Times and Wall Street Journal) and literature research. There will be a wide range of both primary and secondary research evaluating key themes within the chosen trend. Qualitative primary research was undertaken in the form of a survey. The research was strengthened through visits to the Hotel Chocolat store in Nottingham and York making the primary findings robust. This can be seen as a key strength of the qualitative research, meaning that the findings were reliable and current to the brand within this report. As supported by Creswell who points out the â&#x20AC;&#x153;Standard of validity and reliability are important in qualitative researchâ&#x20AC;? (Creswell, 2014). One limitation of this research was that the primary research survey was only conducted by people in the UK, therefore having a limited wider public insight.

Brand Story Hotel Chocolat were at the start of a revolution in British chocolate, when they opened their first store in 2004 in London. Curated by two entrepreneurs, Angus Thirwell and Peter Harris, whom were on a mission to make chocolate exciting once again. They have three key values, which is what they based the business on:

MISSION - VISION - ESSENCE Originality We’re constantly striving to be fresh, creative and innovative, and always one surprising step ahead. Authenticity Chocolate starts at the roots of the cacao tree. So we got stuck in. Ethics You work too hard for bad chocolate. They work too hard for cheap cocoa. We’ve been raising the bar for cocoa-growing since 2002.

(Chocolat, 2017)

Key Events 1993 Started selling chocolates online. 1998 The Chocolate Tasting Club is created 2004 First store opens. 2010 First café opens in London. 2012 Boucan hotel opened on St Lucia plantation. Voted UK’s most advocated British brand. 2014 The School of Chocolat opens in Covent Garden. Copenhagen opens two new stores 2015 First cookbook ‘A New Way of Cooking with Chocolate’ launch.

Engaged Ethics St. Lucia has real poverty in the agricultural sector; our main effort therefore, is to lead a renaissance of cocoa-growing amongst our neighbours. This renaissance will regenerate cocoa-growing in St. Lucia and we will create a sustainable market for chocolate made from these beans. Local cocoa-growers will once again have a secure income and feel confident enough to breathe new life into their farms through investment. Hotel Chocolat Cacao-Growers Programme of Engaged Ethics (HCCAPEE) All cocoa farmers in St Lucia are eligible to join this free programme, and membership is intended for individual cocoa-growing farmers only. In this way, the cocoa farmer reaps the full benefit of his labour, bypassing middle men who often add no value whatsoever to the sale process, and exploit the smallest, and poorest growers.

Fair Trade Fair Trade is now the most recognisable emblem of trading fairly and has helped raise consumersâ&#x20AC;&#x2122; awareness of the problems faced by farmers in developing countries. On the farmersâ&#x20AC;&#x2122; side, the movement provides a safety net that guarantees a minimum price for their produce. A fair price that allows them to cover costs and make a living that not only protects farmers from volatile commodity markets, but also from unscrupulous buyers. Our products differentiate themselves by exploring the subtle nuances of origin, quality and variety of the cocoa bean. So, using Fair Trade cocoa would severely compromise our aim of creating high quality chocolate.

(Chocolat, 2017)

Boucan by Hotel Chocolat opened in 2012. Cocoa plantation in Saint Lucia.

Hotel Chocolat Data

Income Statement Year on year Hotel Chocolat Group PLC grew revenues 12.36% from 81.07m to 91.09m. In addition the company has reduced the cost of goods sold as a percent of sales, selling, general and administrative expenses as a percent of sales and interest paid as a percent of sales. These improvements contributed to 99.48% net income growth from 2.05m to 4.08m.

(Financial Times, 2017)

First attempt in entering the USA market Hotel Chocolat have already entered the USA market, however unfortunately it was not successful. Store locations in Boston and Long Island, New York had to close their doors. Although whilst open they traded well, the cost of shipping to the stores made them uneconomical to retain for long. 70% of the Boucan Hotel visitors in St Lucia are Americans. Which gives insight to a remaining high interest in the company’s overall brand message. “All chocolates are not created equal.We’ll stop at nothing to make the best chocolates on the planet” - Hotel Chocolat

(Lawson, 2015)

Product Offering

Dietary

Type

Gifting

Beauty

Alcohol Free Dairy Free Diabetics Gluten Free Low Carb Low Sugar Nut Free Organic Vegans Vegetarians Wheat Free

Bean to bar Boozy Caramel Cocoa Gin Coffee Dark Fruity Marzipan Milk Mint Nut Patisserie Praline Supermilk Truffles White

Anniversary Birthday Christening Congratulations Dinner Party Engagement Get Well Soon Good Luck Graduation Housewarming New Baby Teachers Thank you Retirement Sorry Sympathy Wedding

Candles Bath Oil Body Butter Body Scrub Body Wash Eau de Parfum Shower Créme

Hotel Chocolat sell a wide range of product within their offering of different core ranges. The ‘classic’ products are the options within their premium ‘gifting’ range, ‘Birthday’s’, ‘New Baby’, to ‘Thank You’. One of their USP’s is their product range within the ‘dietary’ offering. By having these ranges, Hotel Chocolat are able to access a wider consumer. Although their products are of high value, their consumers respect and appreciate the unique offering and craftsmaship that is put into the process of making Hotel Chocolat’s finest chocolates.

External Business Review

UK Competitors – Premium Chocolatiers (primary)

Hotel Chocolat have a vast range of core competitors within the chocolate market, but also in the ‘premium chocolatier’ market. Although their USP (unique selling point) is it’s extensive offering in premium chocolate, it’s reputable recognition in the mass market is slim. Charbonnel et Walker and Lindt, both offer premium product that has a wider accessibility to the same target market as Hotel Chocolat. Although the brand is continuing to open more stand-alone stores within the UK. By only having presence in one department store in the UK (John Lewis), their wider accessibility and availability is minimal.

Expensive

Unavailable/ Recognisable

Availabilty/ Recognisable

Inexpensive

UK Competitors – Premium Gifting (secondary)

Hotel Chocolat’s extended product offering, means that not only premium chocolatiers are their primary competitors. They also have secondary opponents in the ‘premium gifting’ market. Companies such as Jo Malone London and The White Company, both offer premium gifting to the same target market. Products by Hotel Chocolat range from candles, bath oils, body wash to Eau de Parfum, all products that are available from their competitors. Due to Hotel Chocolat having minimal presence within UK department stores, their availability is slim.

Expensive

Unavailable/ Recognisable

Availability/ Recognisable

Inexpensive

USA Competitors – Premium Chocolatiers The USA’s premium chocolatier market is not so different that of the British. Two of the key contenders in the USA department store selection (Barney’s New York & Nordstrom), are Charbonnel et Walker and Mast Brothers. Both widely known to the UK market, and can both be found in the department store, Liberty’s London. Each of the 10 brands selected, all have key points in common.The style of their packaging is of premium quality and high-end and their price ranges resonate that of Hotel Chocolat’s. 1. Mast Brothers 2. Charbonnel Et Walker 3. Sugarfina 4.Vosges 5. Loli & Pops 6. Jaques Torres 7. Filka Chocolate 8. The Toffe Box 9. Droga Chocolates 10. Freds Charbonnel et Walker & Mast Brothers can both be found in the department store Liberty’s London. Accessible to the same demographic and target market as both Nordstrom and Barneys New York.

USA Competitors â&#x20AC;&#x201C; Premium Gifting Hotel Chocolat has fewer premium gifting competitors in the USA market. One example is Olive and Cocoa, who specialise in unique, design driven gift crates and floral arrangements. They provide free gift packaging with every product as well as pricing the gifts to accommodate for a variety of budgets, whilst still providing a premium luxurious experience.

1. Aesop 2. Kiehlâ&#x20AC;&#x2122;s 3. Olive & Cocoa 4. Philosophy 5. Bath & Body Works

The Consumer Hotel Chocolat’s consumer are affluent, working class adults, in their 30’s whom have the freedom in spending money on themselves with gifts such as premium chocolate. They appreciate quality over quantity and respect good design. On the other hand, the younger generation from 18-25 enjoy eating ‘standard’ chocolate that is more convenient to purchase (e.g. supermarkets, convenience stores). Hotel Chocolat in the eyes of this demographic have the perception that it’s too expensive and a waste of money for a product such as chocolate.

The UK Consumer Male/Female

A Hotel Chocolat consumer is someone who enjoys and appreciates the little sensations in life. When it comes to special occasions, they want to make it memorable and exciting for all by providing luxury chocolate to share that will spark up conversation. Living a busy lifestyle, they are constantly on the go with work and family commitments, so winding down is important to them. Whether that is through practicing yoga or sitting down at home with a magazine and a glass of wine, they a mindful about the balance in their lifestyle.

The USA Consumer Male/Female

The living â&#x20AC;&#x2DC;on-the-goâ&#x20AC;&#x2122; lifestyle is one that they cannot seem to escape a Hotel Chocolat consumer. Whilst enjoying their work life is important, finding a balance between work and social is something that requires effort. When it comes to shopping they prefer to have everything in one place such as department stores, that caters their needs. Having the luxury of parks around the city, exercise is something that is not taken for granted. They appreciate the little luxuries in life, so they know when to treat themselves, especially when it comes to enriching, luxury chocolate.

Chocolate Confectionary Market Shopping Behavior: 44% - ‘I’m prompted to buy chocolate when I see new flavors in-store.’ 43% - ‘Novelty products encourage me to buy chocolate’ 26% - ‘I’m more likely to buy chocolate if the store has it by the checkouts’ Quality and discovery drives shoppers to specialists – Specialist food and drink shoppers visit specialists because:

43% - They stock higher quality produce than other shops 35% - They offer products that cant be found in other shops 30% - Consumers support independent shops Top Reasons to buy chocolate: 59% - Treat oneself. 35% - An evening at home. 28% - Share with others. Consumers will pay more for chocolate if its: 44% - A ‘premium’ brand 30% - From a specialist chocolate store 29% - Hand-crafted/hand-made 29% - In ‘premium/luxury packaging’

(Mintel, 2017) (Caines, 2016)

Chocolate Confectionary Market

Consumers are prepared to pay/spend more when buying chocolate as a gift than when they are buying it for themselves.

A strong financial incentive therefore exists for companies to tap into the lucrative gifting market.

The majority of people think itâ&#x20AC;&#x2122;s ok to eat small amounts of chocolate every day as part of a balanced diet. An increased emphasis can be placed on eating similar amounts of more premium or luxury products as a daily treat.

Premium chocolate brands have a strong advantage in this area, but it is beneficial for all chocolate manufacturers to have a luxury offering to capture higher levels of spend.

Brands should continue to push â&#x20AC;&#x2DC;me timeâ&#x20AC;&#x2122; and the eating of chocolate(s) to treat yourself or lift your mood. Marketing campaigns for chocolate brands could put a greater emphasis on showing people enjoying themselves eating chocolate together in different situations.

The introduction of new flavours and novelty products is important for maintaining interest in and engagements with chocolate confectionary brands and tapping into impulsive shopping behaviour. Chocolate competes against a number of other treat foods, but has maintained its strong appeal in the self-treating context.

A large number of retailers have taken the decision to remove chocolate confectionary from the checkouts, which means brands need to increase the visibility of chocolate in other parts of the store. Almost a third say they visit a specialist to support independent stores, but it is important not to rely too heavily on goodwill. Quality is vital for any specialist but to stand out they have to offer something that can not be found elsewhere. Constantly introducing new and exciting products encourages repeat visits and demonstrates expertise in a product area.

(Caines, 2016)

UK PEST Analysis POLITICAL After Brexit, exiting the EU offers ‘unrivalled opportunity’ to halt staggering food price inflation. The USA is Britain’s top export destination and the UK’s second-largest trading partner. There is $588bn of US investment in the United Kingdom whilst the UK had invested up to 2014 some $449 billion into the American economy. ECONOMICAL Over the past eight years, the economy has grown at an average rate of 1%. Much of the blame for this quirk has been placed on difficulties the Commerce Department has faced adjusting the GDP figures for seasonal swings in an evolving economy. Consumer spending grew at just a 0.3% annual rate -- its slowest showing since the fourth quarter of 2009. With incomes rising, consumers will probably spend more, though rising inflation is eroding their gains. (Wall Street Journal, 2017) SOCIAL Consumer behaviour spending habits are constantly changing, prioritising price whilst shopping has become key. Consumers are looking to convenience stores to purchase, where there has been an increase of 38% between (2005-2014) and is expected to grow a further 11% over the next five years. TECHNOLOGICAL There has been a rise with brand followers who are watching streamed videos, suggesting that they are happy to connect with brands online on a daily basis and are keen to watch live streams in general across all social platforms. 56% of consumers would watch a specific advert in exchange for a discount on a product/service. Empowering the user to make online adverts more relevant to the consumers is key to boosting engagement. (Mintel, 2017)

Ansoff Matrix Exisiting

Product

New

Market

Exisiting

Market Penetration

New

Product Development - Broaden range of annual holiday gifting confectionary (Halloween, 4th of July, Thanks Giving, Superbowl Sunday, St Patricks day)

- Create online/offline campaigns with a brand ambassador to increase exposure of the brand/product to exisiting and potenital new consumers

Market Development

Diversification - Develop wider range of gifting product offering. More home-spa related products to link with their St Lucia Hotel

- Develop a presence of concessionâ&#x20AC;&#x2122;s within department stores in the USA market - Incorporate online/offline marketing campaigns to promote new locations (Potential brand ambassador) - Introduce seasonal gifting products in the concession product offering

Hotel Chocolat will benefit by incorporating, Market Development into their strategy. This provides the company a chance to incorporate their core seasonal premium gifting product into the USA market. Incorporating online/offline campaigns alongside a brand ambassador, will generate fast interest to the USA consumers. With potential in reaching out to future new customers.

MACRO TRENDS HEALTHY LIVING

SHOPPING BEHAVIOURS

A high proportion of people who check on-pack nutritional details further indicates the level of concerns over sugar.

In the USA, within supermarkets the system ‘scanit’ has been in use. Consumer can use their mobile devices to scan and pay for their product as they go around.

Consumers are open to a range of sugar alternatives, with anything with a vaguely natural association especially favoured

Department store Nordstrom is issuing mobile devices that workers on the sales floor can use to scour the company’s inventory for a garment in a size a customer is requesting. The shopper pays on the spot, with no need to locate and wait at a cash register.

While there is no-size-fits-all option suitable for all product categories, consumer openness gives companies wide scope to experiment with different substitute ingredients to find the one best suited to their requirements.

MACRO TRENDS FAIR-TRADE & ETHICS

DEPARTMENT STORES

Whilst many ethical products carry a certification mark they often fail to explain why they are more expensive and where in the supply chain the extra money goes. Explaining to shoppers in a more transparent way how much of their money goes to the producer, where practicable, offers one way to build trust.

Department store sales grew at only 1% during 2015, the worst performance since the recession hit. The main reason was due to the continuing decline at M&S, whose nonfood sales were included. Fortnum & Mason, Selfridges, House of Fraser and John Lewis all had great performances.

Consumers are willing to pay more for food products bearing on-pack ethical certification. The consumers expect food products to meet adequate ethical standards having to pay more for them. For higher priced products that bear on-pack ethical certification, explaining why the product is worth paying more for is key.

Department store concessions are designed with the busy worker in mind who prefer flexibility. They help to gauge consumer interest and provide a testing ground for brands that are not in a traditional stand alone retail space. (Mintel, 2017)

Many major chocolate confectionary brands use Fairtrade Foundation certified cocoa and many leading grocers offer 100% fair-tradecertified bananas. Cost remains a key barrier for many to buying into certain ethical food & drink products, such as organic & fair trade. (JWT, Intelligence. 2017) (Ford, 2017)

MICRO TRENDS

PACKAGING

SPECIALIST RETAILING

Specialist food and drink shoppers visit specialists because: Quality is vital for any specialist but to stand out they have to offer something that canâ&#x20AC;&#x2122;t be food elsewhere.

Constantly introducing new and exciting products encourages repeat visits and demonstrates expertise in a product area.

43% - They stock higher quality produce than other shops 35% - They offer products that cant be found in other shops 30% - Consumers support independent shops

Consumer perceptions on food specialistâ&#x20AC;&#x2122;s vs supermarkets indicate that consumers trust the quality of goods within specialists alongside the knowledge that staff have. An advantage is that there is a wider range of goods within specialists meaning that there is more success in the consumers finding something to purchase. (Slide, 2017)

MICRO TRENDS SOCIAL MEDIA

ORGANIC FOOD

Marketing campaigns on social media platforms such as YouTube, generate a large public interest. Social media is an exciting and innovative way to generate dialogue with consumers.

The total organic food and drink market increased value at retail level by 10.1% in 2005. Since then the organic food market in the USA has increased, retail sales in 2010 totalling $26.6 billion (significant increase from $6.1 billion, from 10 years ago.

Affiliate programs, used by online retailers are gaining new ground for online bloggers, as they expand to more platforms such as Instagram, Facebook and Twitter. Commission generatingmarketing is a mechanism that is one the most common. by bringing shoppers directly to the product. Nordstrom department store have an affiliate program that works with several thousands of bloggers and social media personalities.

The USA consumer, once buying mainly organic produce has signaled to retailers and downstream suppliers a strong interest in a wide range of organic produce, including milk. (Clifford, 2017)

Internal Business Review

Brand Platform

We believe that our customers associate our band withâ&#x20AC;¦

TANTALIZING LUXURIOUS DELICIOUS SOOTHING AROMATIC SENSUAL CLASSIC RICH ARTISAN CREATIVE

TASTEFUL

DESIRABLE ENJOYABLE IRRESISTIBLE

TEMPTATION 39

SWOT Analysis of Hotel Chocolat Strengths

Weaknesses

Opportunities

Threats

Vast variety of innovative and creative product offering; on top of seasonal trends

Minimal advertising online/offline

Create offline/online campaigns

Large range of competitors

Expensive product pricing

Celebrity endorsements

Only 1 international store (Copenhagen)

Wide range of services; brick & mortar stores, cafes, restaurants, hotel

Only sold in 1 UK concession; small recognition

Create presence in larger department stores; potential collaborations with other brands

Easily overlooked due to pricing

Loyal customer base; tasting club

With Hotel Chocolat’s wide range of high-quality product offering and services, there is potential to widen its presence within the ‘premium gifting’ sector. Expanding its reach within concession stores in the UK would be the next step. Liberty London and Selfridges would be strong candidates, as the target consumer of these department stores understand the higher value product offering. Each of these above components are equally as important, to creating success and eventually further improve the brand. However, ranking the SWOT in usefulness and attractiveness for the company’s progression; a combination of both the weaknesses and opportunities are most relevant. If both these areas gain development leading to success, it will only diminish the potential threats and further reinforce the company’s strengths.

Primary Research Findings

55% are aware that Hotel Chocolat offer products that are not chocolate. Demonstrating that there is high need in promoting and marketing their range of luxury ‘beauty’ gifts. An overall 64% are willing to spend up to £20 when it comes to purchasing chocolate as a luxury gift. This is an advantage for Hotel Chocolat, although from the survey the brand was described most as ‘expensive’, people are still willing to pay, even up to £30+ (4%) when it comes down to gifting.

(Typeform, 2017.)

Primary Research findings When asked how to describe Hotel Chocolat in one word, here is what people saidâ&#x20AC;Ś

Posh Good Expensive Quality Style Luxury Tasty High-Quality Up-Market Innovative Luxurious Delicious Indulgent Unique Sophisticated

Rich Varied Special Elegant Decadent Quirky Classy Original Exquisite Authentic Chic Personalised Lowkey High-End Gifting

Premium Experimental Presentable Overpriced Cocoa Swirl Yummy Exclusive Romantic British Sleek Choice Prestige Smooth

Overall consumer perception of Hotel Chocolat is that itâ&#x20AC;&#x2122;s EXPENSIVE. 52 mentioned.

(Typeform, 2017.)

Hotel Chocolat Nottingham

Hotel Chocolat York

Potential Brand Ambassador: Pierce Brosnan

Quintessentially British Internationally recognizable Classic, smooth, sensual Target market appropriate Exudes trust and admiration

Celebrity endorsement is crucial, as the chosen person will reinforce the brands image and position within the market. Considering the following criteriaâ&#x20AC;&#x2122;s; appeal, notice, influence, trust, endorsement, trendsetting, aspiration and awareness, Pierce Brosnan for Hotel Chocolat would be the suitable choice.

Social Media Presence

Hotel Chocolat have a clear consistency of their brand message throughout their social media platforms. Instagram, Facebook and Twitter all mention how they are a ‘British Cocoa Grower’, ‘Chocolatier, hotelier and Restaurateur’. They keep their online presence simple, clean and crisp whilst staying interactive and engaging with their followers.

USA Market Entry Strategy

Reasons why British brands excel Geography: The countryâ&#x20AC;&#x2122;s proximity (UK) to the rest of the western Europe means that most retailers already have experience in expanding abroad. Either through international shipping, localised websites or a physical presence. Consumer Maturity: The sophistication of the UK consumers matches that of the US shoppers. In the USA there is a great deal of admiration for British heritage and lifestyle brands. The US has historically been an extremely challenging country to conquer in retail, due to its size and diverse culture. The US is still the most desirable expansion market. Many British brands still retain a great deal of cachet to global consumers.

(Hygenic.com)

THE MARKETING MIX THE EIGHT Pâ&#x20AC;&#x2122;s

PRODUCT Continuing Hotel Chocolatâ&#x20AC;&#x2122;s consistency with their premium offering in giftingchocolates is critical. By firstly introducing holiday seasonal gifting options that caters to the USA demographic, will gain the company respect from the consumers, from having acknowledged and catered to their requirements and needs.

PRICE Hotel Chocolat offer premium gifting products with a relatively high price point. To continue their reputation in being a premium quintessential brand, continuation in keeping their premium indulgences and expensive taste, their prices must remain the same once launched into the USA market.

PROMOTION Through the use of a brand ambassador; promotion of Hotel Chocolat will be accelerated within the USA market. Using the suggested ambassador, Pierce Brosnan whom is internationally recognised and engages with the affluent target market of the brand. Incorporating both online and offline marketing campaigns (alongside the brand ambassador), promoting the openings of both concessions in the USA. The use of leaflets, flyers and sponsored advertisements on social media will lead to its official launch, with a continuation in promoting their seasonal holiday gifting products.

Key annual seasonal holidays that will be included in Hotel Chocolatâ&#x20AC;&#x2122;s product offering, that are specific to the USA market are: Memorial Day Independence Day (4th of July) Labour Day Halloween Thanksgiving Day

PLACEMENT

PEOPLE

PROCESS

Introducing Hotel Chocolat into the USA market using concessions as the intermediary gives the brand a stable ground for their entry strategy.

Hotel Chocolat’s staff are the pride and joy of the company. Their extensive brand and product knowledge is what makes them unique. Launching into the USA market, the staff play an important role in representing the brand, whilst reaching out to new consumers and being ‘story-tellers’ of Hotel Chocolat’s message and product offering.

Developing Hotel Chocolat’s presence with minimal risks, they will export their developed seasonal products (catering to the USA holidays), using department stores; Nordstrom and Barneys New York as the intermediary

For the concession choices; Nordstrom and Barneys New York are best suited to the Hotel Chocolat’s consumer. Being present within these concession stores, will gain further interest from current consumers who already purchase products from the company’s website, alongside the potential to generate new customers who shop with within the concessions.

At the same time, the staff must gain an extensive insight and confidence into the USA holidays to understand the consumer’s needs. All must remain with keeping the brand’s quintessentially british heritage at heart.

PHYSICAL

POSITIONING

Representation of the brands message and British heritage led to its success within the UK market. Factors that have all contributed to its continual success are; the premium innovative product offering, advertising, signage, store layouts, packaging and even the staff uniform.

Hotel Chocolatâ&#x20AC;&#x2122;s positioning in the USA market will resonate with the brands core values. Remaining to be known as an innovative brand, exploring and being creative with the craftmaship of chocolate. Offering not only premium products, but also premium memorable services within their concessions.

These factors have helped Hotel Chocolat stand apart from their competitors. Incoporating these into the USA market, will give the brand the confidence in being successful.

The objective is to gain further consumer trust from their current customers and acquire new footfall, whilst not losing sight of the brand.

USA CONCESSIONâ&#x20AC;&#x2122;S

NORDSTROM & BARNEYS NEW YORK Both established premium department stores currently sell premium gifting chocolate. Exporting Hotel Chocolat’s product into one or both of the department stores, using this platform as an intermediary would be the ideal strategy in entering the USA market. With knowledge that consumers who purchase from the two department stores are not going to be turned off by the price point of the product. Luxury chocolate is not something new, for either Nordstrom or Barneys New York. The level of offering, especially for ‘gifting chocolate’ is something that the consumers already buy into it. Making a presence within at least one out of the two options gives Hotel Chocolat a new start in increasing their brand awareness in the USA market. Introducing concessions into the USA market, gives an opportunity for Hotel Chocolat to celebrate and take on board the American cultural and festivities. Annual holidays such as, Halloween, Thanksgiving, 4th of July, Valentine’s Day, Christmas, Easter and the Super Bowl Sunday open a new avenue in which Hotel Chocolat can create premium gifting chocolate, suited to each key holiday.

Marketing Campaigns Creating both online and offline marketing campaigns, to help promote the openings of the concessions, will generate an instant interest, gaining recognition within the USA market at a faster rate. With the help of a suitable brand ambassador, the brand message will gain a wider reach of the Hotel Chocolatâ&#x20AC;&#x2122;s consumer, by not only engaging with the brands existing consumers in the USA who purchase the product from online, but potential new customers. Booklets and leaflets can promote seasonal chocolate options, celebrating the USAâ&#x20AC;&#x2122;s holidayâ&#x20AC;&#x2122;s (gifting/nongifting). Using store representatives to engage with the public and hand out flyers promoting the brand near the location of each Barneys New York and Nordstrom will increase the footfall.

References

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