Ethel's Chocolate Lounges Case Analysis: Ethel's Chocolate Lounges

Case Analysis: Ethel's Chocolate Lounges: Back to the Future?

Creating a highly unique, differentiated and memorable dining experience is at the center of the launch of Ethel's Chocolate Lounges in initial cities with further expansions planned in the future. The goal of this analysis is to analyze consumer buying decisions pertaining to Ethel's Chocolate Lounges and an assessment of the factors affecting consumers to choose to spent time and money there. An analysis of the consumer motivations that are most likely to be an effective catalyst for driving additional business are also explored in this analysis.

The Consumer Buying Decision Process to Visit and Spend At Ethel's Chocolates

Dining of all forms, from fast food through high-end dessert and coffee shops all share a common attribute of offering a unique experience first, with pricing often being used as a strong communicator of differentiation and value. What Ethel's Chocolate Lounges are selling is the opportunity to have a unique experience. The experience encompasses high-end desserts and beverages that can be shared with friends, making the experience even more memorable and fun. Ethel's is relying on all aspects of the experience, from the smell of the beverages and chocolates to the experience of being in a high-end establishment with a focus on service. Differentiating on experiences over just product, price or promotion can deliver higher levels of profitability and greater customer loyalty at the same time (Pine,...

Ethel's is concentrating on this aspect of the experience, combining their market position with an aspirational and reward-driven message to further motivate customers to invite their friends to an Ethel's Chocolate Lounge (Carter, Young, Rutledge, Armstrong, 2006). As the case mentions, Mars must tread lightly on this positioning as the economic conditions in the United States continue to be recessionary and filled with uncertainly. Ethel's needs to be careful to not appear so extravagant that they are seen as a frivolous luxury despite how unique, valuable and aspirational the experience has the potential of being. The emphasis on how sensory the experience is, from the smells, tasted, ambience, service and quality all need to be reinforced for consumers to see Ethel's Chocolate Lounges as a chance to relax and not as a waste of time and money. With many family budgets under attack from inflation and little if any raises over the last five years for millions of Americans, it could become a hard sell very quickly if they don't position it well. The best possible positioning is to concentrate on how unique, sensory- and service-rich experience, concentrating on how it could become a highly personalized, aspirational purchase with friends or on one's own (Pine, Gilmore, 2008).
Analyzing Factors That Influence Consumer Spending at Ethel's

The value of the experience itself, not just the chocolates, drinks or shops' decorations and atmosphere mean the most to consumers. For Mars to capitalize on this most important factor of experiential marketing, they…