Thorntons' Strategy over the Years
Introduction
A number of factors have contributed to the success and problems faced by Thorntons up until 2003. Over the years, the company seems to have lost focus on its original strategy based on product differentiation and spread itself too thin in pursuit of multiple objectives. It is clear that the values on which Thorntons was originally founded were the principal reasons for the company’s initial success in Britain. From the very beginning, a combination of the quality ingredients that Thorntons had used and the manufacturing expertise it had developed for its core products were the key reasons for its success. Indeed, upon originally launching itself in the United Kingdom’s confection industry, Thorntons succeeded in positioning itself as a chocolate specialist and offered a wide range of products (positioned as “top of the line” in the competitive boxed-chocolate market and therefore appealing to a certain market segment). Additionally, one of the company’s competitive advantages came from the freshness and consistency of its hand-made products; these two characteristics were essential to Thorntons’ initial success in positioning itself as a purveyor of specialty chocolate which was of exceptional quality.
In regard to sales, the company’s strategic selling process (through company-owned shops) contributed to this good image and helped Thorntons to position itself as a high class chocolate manufacturer and retailer. Indeed, the advantages of having company owned shops are great, as it is possible to develop relationships with customers and implement loyalty programs. Moreover, by selling through its own retail shops, Thorntons could carefully guard proprietary knowledge such as its top-secret, bestselling recipes. As Thorntons set high standards for its products and employees, operations could be monitored easily and sales progress of chocolate could be tracked. This ability to rely less on franchised stores proved to be efficient, as it was later
A number of factors have contributed to the success and problems faced by Thorntons up until 2003. Over the years, the company seems to have lost focus on its original strategy based on product differentiation and spread itself too thin in pursuit of multiple objectives. It is clear that the values on which Thorntons was originally founded were the principal reasons for the company’s initial success in Britain. From the very beginning, a combination of the quality ingredients that Thorntons had used and the manufacturing expertise it had developed for its core products were the key reasons for its success. Indeed, upon originally launching itself in the United Kingdom’s confection industry, Thorntons succeeded in positioning itself as a chocolate specialist and offered a wide range of products (positioned as “top of the line” in the competitive boxed-chocolate market and therefore appealing to a certain market segment). Additionally, one of the company’s competitive advantages came from the freshness and consistency of its hand-made products; these two characteristics were essential to Thorntons’ initial success in positioning itself as a purveyor of specialty chocolate which was of exceptional quality.
In regard to sales, the company’s strategic selling process (through company-owned shops) contributed to this good image and helped Thorntons to position itself as a high class chocolate manufacturer and retailer. Indeed, the advantages of having company owned shops are great, as it is possible to develop relationships with customers and implement loyalty programs. Moreover, by selling through its own retail shops, Thorntons could carefully guard proprietary knowledge such as its top-secret, bestselling recipes. As Thorntons set high standards for its products and employees, operations could be monitored easily and sales progress of chocolate could be tracked. This ability to rely less on franchised stores proved to be efficient, as it was later