The Right Type of Product for Marabou Chocolates

Case Study – Marabou Chocolates
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February 17, 2021
Understanding the importance of pricing strategies with market conditions is crucial for any business. This is more particularly so for new businesses who are trying to compete with established products in a highly competitive market. In the case at hand, the author would focus on the case of the ‘Marabou’ chocolate to determine the correct pricing strategy that would allow for its success in the United States. This analysis would include the right type of product to be sold during its trial period in the state of California.
Target Consumer and Retail Price
In order to ensure competitiveness for the market conditions it would be best to sell a (1) Large Classic rectangular milk chocolate (Product 2) and a (2) medium square orange chocolate (Product 3).
On the one hand, the author believes that the company must initially test the Milk Chocolate for the initial market due to the preferences of the American consumer market as well as its proven popularity in its original market. First, it was shown that “Marabou’s famous milk chocolate (“Melkesjokolade”) variant is the original and still one of their most popular product variants”. Although Product #2, is not the ‘200 grams take home – square’ variant, it has the same color and flavor that Nordic consumers would surely recognize. Second, Milk Chocolate is said to be the variant that is most preferred by Americans. In one study conducted by Giacalone et al. (2014), the authors noted that flavor preference is one of the most important characteristics that needs to be determined when it comes to new product testing. The results of the Flavor study conducted is summarized in the table below (Table 1), thereby suggesting that such chocolate would have a wider consumer preference compared to others.
It must also be noted that even though there is another product that has a Milk Chocolate flavor (Product #1), the original and most famous chocolate product of the company (take-home square) is similar to the large rectangular bar, which is why it is preferred over the other.
Table SEQ Table \* ARABIC 1 - Mean Preferences for each...