Product Discussion: Is The Company's Product Existing?

Product Discuss The Companys Product Is It An Existing Product Or

Discuss the company’s product – is it an existing product or innovation? If it is an innovation talk, about the newness of your innovation (e.g., continuous vs. discontinuous). Identify the company’s product’s stage in the product life cycle. What type of shape does this particular product have (e.g., high-learning, low-learning, etc.)? Discuss how the stage and shape of this particular PLC may impact other components of the marketing mix (i.e., price, promotion, and placement). Discuss how you propose to modify the company’s product or service to meet and/or satisfy the needs and/or wants of the (new) target market. Discuss whether the company’s product/service is high in search, experience, and/or credence properties and why this matters for redeveloping the value proposition. How would you (not) use the current brand for redeveloping or designing the company’s product?

Paper For Above instruction

The company’s product under consideration is Tony’s Chocolonely, which is recognized both as an existing product and as a social innovation within the confectionery industry. Originally launched as a premium chocolate brand, Tony’s has positioned itself uniquely through its commitment to ethical sourcing, particularly aimed at eradicating child slavery and unfair labor practices in cocoa production. This dual positioning as a high-quality product and a social mission qualifies Tony’s as a product with innovative features that differentiate it from conventional chocolate brands.

The stage of Tony’s product in the product life cycle (PLC) is primarily in the growth phase. The company's expanding market reach and increasing consumer awareness about ethical sourcing reflect its movement along this stage. Its distinctive packaging, which features unequal chocolate bar divisions symbolizing industry profit disparities, resonates with consumers seeking transparency and social responsibility. The shape of this PLC exhibits characteristics of a high-learning product because consumers need to understand and appreciate the social mission embedded within the product to fully value it. This high-learning shape impacts the marketing mix by necessitating educational promotion strategies, premium pricing, and selective placement that reinforces its ethical image.

The stage and shape of Tony’s PLC influence its marketing mix components significantly. Given its growth phase and high-learning product nature, pricing strategies should emphasize perceived value rather than cost-based pricing, supporting a premium price point aligned with its ethical positioning. Promotional efforts must incorporate storytelling and transparency to educate consumers about the plight of cocoa farmers and child labor issues, fostering emotional engagement. Placement strategies should focus on channels that align with socially conscious consumers, such as specialty stores, organic markets, and online platforms, emphasizing exclusivity and ethical credentials.

To meet the needs of a broader target market, including American consumers and mainstream retail outlets, modifications to Tony’s product offerings are recommended. Introducing smaller, impulse-buy-sized bars (e.g., 1.8 oz) for convenience stores and gas stations enhances accessibility for new consumers who seek quick, socially responsible options. Improving product visibility through strategic placement next to checkout counters leverages impulse buying tendencies. Additionally, expanding flavor varieties and packaging options tailored to regional preferences can increase appeal and accessibility.

The product’s properties—whether high in search, experience, or credence—are primarily credence-based, as consumers often rely on brand reputation and ethical claims rather than direct experience or search before purchase. This nature emphasizes the importance of credible branding and transparent communication about sourcing practices. Maintaining and leveraging the current brand image, characterized by social responsibility and quality, is advantageous. However, it is crucial to reinforce the brand’s credibility through storytelling, certifications, and consistent messaging when redeveloping or positioning the product in new markets.

Pricing

Currently, Tony’s employs a premium pricing strategy reflective of its ethical sourcing practices and unique product positioning. The price for a typical 6.35 oz bar is about $5.49, notably higher than conventional brands like Hershey’s, which costs around $2.13 for a similar size. This strategy aligns with the brand’s value proposition, targeting consumers willing to pay more for ethically produced chocolate. To reposition the product for a broader U.S. target market, a careful pricing review is necessary. Introducing smaller, more affordable options priced slightly lower (e.g., $3.99 for a 1.8 oz bar) can support impulse buying and inclusivity without eroding the premium image. This approach can enhance market penetration while retaining premium perceptions.

Recommendations include maintaining the premium pricing for larger bars but adjusting the smaller bars’ prices to attract a wider demographic. A tiered pricing strategy supports consumers with different willingness to pay, reinforcing the product’s value-based positioning. Supporting this strategy involves emphasizing the social impact—consumers understand that their higher price contributes directly to fair wages and sustainable practices, which enhances brand loyalty and justifies the premium.

Place (Distribution)

Presently, Tony’s has limited distribution channels geographically concentrated mostly in the Netherlands and select U.S. locations, such as Oregon. The distribution intensity is relatively low, focusing on specialty and organic stores. For broader reach, especially in the highly competitive U.S. market, expanding distribution channels is essential. Modifications include increasing online sales platforms, placing small bars in convenience stores and gas stations close to checkouts, and collaborating with mainstream retailers such as Whole Foods, Target, and Walmart.

The company primarily acts as a producer selling through distributors, but shifting towards direct-to-consumer online channels can strengthen consumer engagement and brand loyalty. Enhancing online distribution with regional logistics can improve accessibility, especially in underserved areas like Alaska and Hawaii. This aligns with ongoing efforts to increase product visibility and impulse purchases at checkout counters, supporting broader market penetration and brand awareness.

Promotion

Promotion efforts should focus on educating consumers about the social mission behind Tony’s Chocolonely. Goals include increasing awareness about ethical cocoa sourcing, fostering emotional connection, and positioning the brand as both a high-quality and socially responsible product. Promotional messaging should aim to inform, persuade, and motivate consumers to choose Tony’s over less mission-driven brands. Content should highlight stories of cocoa farmers benefiting from Tony’s premium cocoa program, emphasizing transparency and impact.

For appeal, a combination of emotional and rational appeals is suggested, with slogans like “Sweet Power for Change” and storytelling that underscores social justice. Physical elements such as consistent use of brand colors (earth tones symbolizing sustainability), logo, and fonts should remain unified across media for brand recognition. Media choices include social media advertising (Instagram, Facebook, Twitter), influencer partnerships, and content marketing through blogs and videos explaining the brand’s mission.

Estimated costs for advertising campaigns are supported by media research, with digital ads, social influencer collaborations, and sponsored content forming the core budget. Visual samples of advertising include a video campaign showing farmers and workers behind the product, and print ads depicting the product alongside compelling social messages. A sales promotion could involve discounts for first-time online buyers or special bundles sold at store checkouts to stimulate impulse purchases. A publicity event, such as a sustainability fair or chocolate festival, would generate awareness and media coverage, reinforcing Tony’s social mission and ethical leadership.

Conclusion

In summary, Tony’s Chocolonely's innovative positioning as an ethically driven chocolate brand provides a solid foundation for market expansion. By adjusting its marketing mix—particularly through product modifications such as smaller sizes, strategic distribution enhancements, and targeted promotion—the brand can better meet the needs of the U.S. market. The focus on credence properties and transparent storytelling supports its value proposition. A strategic shift towards B2B collaborations and retail expansion, coupled with well-crafted social campaigns, will enable Tony’s to sustain growth, improve brand recognition, and reinforce its mission of social justice within the industry.

References

  • de Morre, C. (2019). Tony’s Chocolonely: A Mission to End Modern Slavery. Journal of Ethical Business, 12(3), 45-52.
  • tonyschocolonely.com. (2019). About Tony’s Mission. Retrieved from https://tonyschocolonely.com
  • Walmart.com. (2019). Chocolate Bar Prices. Retrieved from https://walmart.com
  • Huber, J. (2018). Organic and Ethical Chocolate Choices. Organic Food Magazine, 22(4), 15-18.
  • Mordor Intelligence. (2019). Chocolate Market: Industry Trends & Forecasts. Mordor Intelligence Reports.
  • LiveStrong.com. (2018). Top Organic Chocolate Brands in 2018. Retrieved from https://livestrong.com
  • Shopify. (2019). The Psychology of Impulse Buying. Shopify Retail Insights.
  • CreditCards.com. (2019). Impulse Purchases and Consumer Behavior. Retrieved from https://creditcards.com
  • de Morre, C. (2020). Strategic Marketing in Ethical Food Industries. Journal of Business Strategy, 41(2), 78-85.
  • Smith, A. (2021). Diversification and Market Penetration Strategies for Social Brands. Harvard Business Review, 99(7), 102-110.

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