Thorntons

Topics: Marketing, Strategic management, New product development Pages: 33 (2263 words) Published: February 26, 2015
Marketing Strategy
Case Study
27.11.2014

Lisa Weber
Yichen Zhang
Yinpei Wang

Melis Yücel
Yoann Cordelet
Sheng Xue

Agenda
1. Company profile
2. Situational Analysis
3. Evaluating Strategic Options
4.

Marketing Audit

5.

Future Implementation

6.

Conclusion

7.

References

8.

Appendix

Company Profile

1

Company Profile

Summary
In general






A UK chocolate company
 Publicly owned  enterprise
Established by Joseph William  in 1911
3900 people are employed by the company
2013: 249 shops and 186 franchises

Turnover: £221 million 

2

Company Profile

Main Product Range
Chocolate boxes

Seasonal chocolate

Chocolate tablets

Bag of fine chocolate/
indulgences

3

Company Profile

Mission Statement

 Long history
 Finest quality
 Variety of chocolate types
 Thoughtful and exquisite gifts
4

Situational Analysis

5

Situational Analysis

Macro Level: Pest Analysis
Political

Economic

Social/cultural

Technological

•Conservative Party focus
on helping small
business; growing focus
on the health care
•Enjoying the free trading
zone of European Union

•Inflation continues to
threat the consumer
sales-spending; High
demand in China and
other developing
countries drive the high
price of chocolate.

•Widespread awareness
of the ill effect of sugar
•UK consumer have a
sweet tooth
•Brand knowledge and
loyalty in Chocolate
market
•Increasing adventurous
Consumer base
•68% consumers listed
Promotions is the Top
five influences according
to Food statistics
Pocketbook 2013

•Most people engage
with internet information
everyday

•Potential further growth
without policy restriction

•Less disposable income
affects the demand of
chocolate and sugar.

•Size down to reduce
calories.
•Demand for innovation,
fun, unusual
•Promotion still is the key
strategy to increase sale

More effective to carry
out social media
advertisements

+3

-3

+2

+4

Trend

Implication

Evaluation of
potential

Scale: from-5: very unlikely to +5 very likely

6

Situational Analysis

Micro level: Porter Five Forces
Factor
New entrants

Substitution

Buying Power

Supplier power

Overall intensity of
rivalry

Nature of Force

Implication for Thorntons

Evaluation

• High capital investment
• Knowledge, logistics,
• Strong brand loyalty

saturation(p.1 KN) of the market is
very high, unlikely that new entrants
will enter

-2

Fruit sweets, Haribo Tangfastics,
Rowntree’s Randoms, Wrigley
Skittels, Swizzels Matlow’s
Squashies

Maybe chosen because of Health
Advertising of Government

+3

Buyers see the different brands in
the shops (easy to compare and
switch), 2 diff. kinds of supply
channels (direct buyers in their
own stores and central buyers for
ex. walmart)

Central buyers can bargain the
prices quiet easily as thorntons is
not one of the 3 big players in the
market (4.4% market share).

+3

Unpredictable sugar prices, cocoa
will be more expensive due to
uncertainities in africa (Agribu,
p.39-40); Milk. Higher prices will
be expected (Agribu,p. 37)

Thorntons has not so much power,
only 4,4% of market share

0

New products, brighter colouring,
new marketing channels, more
efficiency

Intense competition, investments in
new technology (?)

+5

Scale: from-5: very unlikely to +5 very likely

7

Situational Analysis

Internal Analysis
Factor

Trend



Physical
resources







Effective partner HP supporting IT system;
Choose DHL as main transportation partner
Support World Cocoa Foundation (WCF);
Protect sustainability of cocoa supplier and
palm oil forest
Technology used to make recycling packing;
Sale waste for other use
Focus on seasonal product range (festival)
Own shops network





Training opportunity;
Survey (questionnaire)
Monthly...


References: •
Thorntons PLC. (2014). Austin: Dun and Bradstreet, Inc. Retrieved from
http://search.proquest.com/docview/230606289?accountid=10792

United kingdom agribusiness report - Q1 2014. (2014). (). London:
Business Monitor International. Retrieved from
http://search.proquest.com/docview/1467818222?accountid=10792
40
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