1.Which of the strategies discussed in this chapter are these companies using? 2.What competitive advantages does the successful execution of their strategies produce for these businesses? 3.What are the risks associated with these companies’ strategies? Jarques Torres Chocolate
1.“Bean to bar” operation; retail surrounded by a working chocolate factory 2.Customers can watch the process of making chocolate covered pretzels from raw cacao (Visible factory) 3.Coating conveyor belt
4.Able to command premium price
5.The differentiation has created a “chocolate nirvana” for customers (Benefit) 6.Provide other intangible benefits such as prestige, luxury gift that cost from $72. 7.Unique store entrance ( Statue of Quetzlcoatl, Aztec cacao god) Competitive advantage
1.Product Uniqueness: Handcrafted from scratch using premium ingredients. “An Exquisite Product
As Jacques says, “It’s all real.” He makes a promise that all Jacques Torres Chocolate products are hand-crafted with premium ingredients, most of which are made from scratch – from the marzipan and the marshmallows to the peanut butter and the cookie dough. Each confection is a celebration of chocolate in its purest sense and never contains preservatives, additives, extracts, oils, or essences. Jacques’ repertoire of confections includes bon-bons, hot chocolate, chocolate-covered snacks (almonds, cornflakes, pretzels, cheerios, gingerettes, marshmallows, espresso beans, graham crackers, macadamia nuts, raisins, malt balls) bark, chocolate bars, ice cream, and more.” Link: https://www.mrchocolate.com/news/about/history/ 2.Service: Customer service online order Tel: (718) 875-1269 3.Pricing: Premium price -> Prestige
4.The way they sell: Online order, sampling of icecream, cookies etc allowed. http://www.yelp.com.sg/biz/jacques-torres-chocolate-brooklyn 5.Values they are committed to: ?
-Customers not seeing the differentiation as important
-Is it sustainable?
-Imitations from rivals?
-Overcharging of price, way above competitors
Xan Confections; http://www.xanconfections.com/
-Market Segment: Health-conscious Women
-Nutritional information as a selling point for their chocolates, eg. Folic acid: prevent birth defects, DHA, omega 3 fatty acid that enhances brain development -Heart healthy & Brain boosting, rather than just making you fat. -Herbs used for anti-inflammatory properties
1.Folic acid: Prevent birth defects
2.DHA (Omega-3 fatty acid): Enhance brain development
3.Heart healthy (Cocoheart)
4.Brain boosting (Cocobrain)
5.Antioxidant-rich chasteberry and bilberry + Herbs used for centuries that have anti-inflammatory properties (CocoPMS) Risk
-Risk targeting a large enough market for profit
-Danger of larger competitors entering the market
-Lose its distraction and get away from its core market by branching into other areas