Reflection Paper - Theo Chocolate

Reflection Paper - Theo Chocolate

1) Going forward, should Theo compromise the principles on which it built its reputation and value proposition?

The most efficient way to build awareness is to increase online sale, which will increase market exposure. In addition, corporate sales and partnership will generate much needed awareness in these sector that will compliment online campaign. Theo will position itself as a company that values their customers both online and in their retail shops. A new easy to use and interactive website will be introduced to establish the new and improved Theo chocolate line. The brand values of Theo Chocolate are being eco-friendly and socially responsible. Theo Chocolate built its image by producing organic, Fair Trade, bean-to-bar chocolate. Theo Chocolate is the first company which is using the main organic,  having fair trade and bear to bar chocolate factory in us. Theo is fair trade certified by the IMO, a Swiss-based independent international agency that claims to inspect, certify and guarantee quality assurance for a wide variety of “eco-friendly” consumer products. They are willing to pay a premium for a product that doesn’t damage the environment, that is healthy to eat and that is just in dealings with farmers, farm workers and workers along the production/supply chain. Theo chocolate workers believed in the fair trade mission of the company. Theo chocolate’s states that its “fair Trade” practices include:

Pure ingredients that are grown sustainably. They source the ingredients locally. Preferring to partnering with  growers by ensuring them to give living wages and access of education for their family. Respecting to their employees and suppliers. Using green energy sources to power the factory.If Theo compromise these factors, it will reduce brand value and reveal its consequences will be a general loss. That is why Theo must protect these factors.

2) Where do you think the opportunities for growth for the company lie? How do you analyze the options? Which would you choose?

For the success of company’s lies on his segmentation, as they target the young, well educated and socially conscious population. The company should not only considered into niche market as it is not profitable but it has also target mainstream and the profit ratio will  go high. Secondly is the seasonal nature of chocolate. Large competitors shifted to high margin health based chocolate products by acquiring other organic chocolate producers. Another thing they can do is expand their distribution channels in the US or they can expand in international markets like Starbucks, and the price can be lowered with the bigger market where they can produce more. I would like to make a decision to make the brand a mainstream brand with a new brand under Theo chocolate company.

3) What should be the objectives of the Theo brand over the next five years? Based upon your choice above, how should Debra Music manage the brand? To what extent should CSR principles drive the brand message? What marketing and sales tactics should she employ to achieve these objectives?

a. What should be the objectives for the Theo consumer brand over the next five years?

In my opinion, Theo should stay in the market niche of expensive organic chocolate. For that it should focus on its PODs which are high quality ingredients, fair trade, business sustainability and environmental protection The target audience defined it the case is very interested in all this issues the company address. However in my opinion, the company does not communicate that values as it can do. Company should increase awareness of the brand focusing on the values they deliver. The first objective should be increasing awareness and more aggressşve value communicating. Also they can try to deal directly  with customers via their own chocolate shops. Differentiating itself from competitors by fair trade and bean to bar chocolate is very important to Theo’s long term success. Therefore, Theo should continue to raise its customer brand awareness and develop new markets to drive production and sales over the next five years

b. Based upon your choice above, how should Debra Music manage the consumer brand? What marketing and sales tactics should she employ to achieve these objectives?

In order to manage the consumer brand, Debra should focus more and more on the company's core principles of the USP, which gives the best value and meets its needs.She should expand the distribution and the availability of her product. Generally Theo used sales very successfully in the Seattle factory. (store sales accounted for about 40% of Theo’s total revenues.) Theo should open up Debra music to other major US retail stores to build brand awareness and develop new markets. Cities like New York and Chicago used Seattle as a model. Debra music was VP sales and marketing, which could produce flavors with wine or alcohol to appeal to the consumer, as well as manage the consumer brands by developing the product. Emphasizing more on health benefits of product in market can also provide them lead. Beside this she can also improve the consumer brand by improving; taste, variety, price, unique flavors, availability, health benefits, packaging, melting temperature, brand image, package size.

c. Should Debra Music attempt to build a B2B brand? How should she go about doing this?

She should, due to the great potential of the chocolate market in the US, Debra music should try to concentrate to create a b2b brand that can generate huge revenue for the company. At the same time, it can cooperate with other companies and retailers; This is entirely b2b and can increase deployment and usability. Theo brand is not as well known as making "a" class brokers attractive to open new markets in the Midwest, southwest and south; For this reason, Theo has a good strategy to build a b2b brand to open up new sales channels, like supermarkets and big chain stores. A strong b2b brand will boost Theo's sales and revenue. It's good for Theo company, especially when Theo factory is not working at full capacity.

As to how Ms. Music can go about creating a b2b brand, creating a strong brand b2c is the first step and will help to achieve the ultimate goal of creating a b2b brand. Some other strategies such as co-branding or private labeling with supermarkets should also be considered.

d. What are the challenges Theo might face in managing brands in both B2C and B2B spaces?Challenges that Theo faces when managing both b2c and b2b brands are already raising the number of more requests, less work, and poor staff in the future. More demand can lead to more raw material input, higher cost in production, lower operating capital supply.

Both b2b and b2c are important, but building a b2b brand is quite different than creating a b2c brand. The B2b brand mainly focuses on services, marketing and b2c branding while managing products while focusing on channels. But the most important thing is to focus on consumers' needs and desires.