Abstract
This paper reviews the main marketing strategies applied by the European chocolate industry. It focuses on the role of country-of-origin, product diversification and scenarios, and provides a historical overview of the industry. This is followed by a discussion of the association between a brand and country-of-origin, before scrutinising the chocolate industry. The analysis of this study uses evidence gathered from the consumer chocolate ranking, company annual reports, consultant statistics, corporate websites and the newspaper archives. The analysis compares the marketing strategies of case studies selected; namely, Ferrero Rocher, Cadbury, Lindt and Sprüngli and Godiva. Moreover, emphasis is placed on the similarities and differences of these brands and other chocolate brands outside Europe. The study’s existing literature and analysis suggests that historical context and business history play important roles over time.
Highlights
A brand and a country-of-origin have a positive correlation, as they influence consumers’ brand evaluation, perceptions, purchasing behaviour and brand equity (Mohd Yasin et al 2007)
Ghirardelli Chocolate Company and Dove Chocolate are not listed in this study because the country-of-origin is not in Europe; Ghirardelli Chocolate Company was founded by an Italian-born Domingo Ghirardelli and created in San Francisco in 1852 (Ghirardelli Corporate Website 2016), while Dove Chocolate was created in Chicago by a Greek immigrant Leo Stefanos (Leib 1985)
The marketing strategies among European chocolate brands differs from other chocolate brands worldwide, from the United States (US), like Hershey and Dove Chocolate, the close competitors in top ten familiar and favourable chocolate brands, for example in pricing strategy which the prices of European chocolate brands in case studies are priced higher than the US chocolate brands
Summary
A brand and a country-of-origin have a positive correlation, as they influence consumers’ brand evaluation, perceptions, purchasing behaviour and brand equity (Mohd Yasin et al 2007). A number of studies emphasise the positive association of country-oforigin in marketing strategy for certain industries; for example, fashion and perfume (Bilkey and Nes 1982), luxury products and accessories (Godey et al 2012; Aiello et al 2009), cosmetics (Ramli 2015), automobile (Häubl 1996), chocolate (Camgöz and Ertem 2007; Ozretic-Dosen et al 2007), and alcoholic beverages (Lopes 2007). These studies can provide a better understanding in creating a favourable brand image. These positive and negative perceptions of brands and a particular industry or product may change over time due to innovation, technological advancements, personal lifestyle or the evolution of marketing strategies and techniques (Poh Chuin and Mohamad 2012), as well as changes in society and environment, founders philosophy, company mission and vision (Ramli 2017)
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