Theo Chocolate Case
Theo Chocolate has to make a decision now that it approaches profitability. It has had success in building a loyal customer base in the Pacific Northwest and with developing a unique brand as the only U.S.-based organic, Fair Trade bean-to-bar chocolate makerbut the company still had yet to turn a profit by 2009??. The most immediate concern for Theo is determining whether to stay true to its social responsibility roots or make strategic compromises to achieve profitability? (Zacharakis et al., 2020).
Without abandoning the companys core values, the first step to address this issue, therefore, would require some refinement of the company's approach to segmentation, targeting, positioning, and messaging. Theo should maintain its core focus on eco-conscious consumers but it should also try to expand into adjacent market segments that share an affinity for organic and premium products. Theo has targeted customers under 40 who are socially conscious and educated, but expanding its reach to include health-conscious middle-aged consumers and families could broaden its customer basewithout diluting its brand identity?.
Positioning Theo as a high-quality, ethical alternative to mass-market chocolates is the key here. The marketing team should focus on communicating the intrinsic value of Theos sustainable practices and high-quality ingredients. It should emphasize taste and ethics.
For the 4Ps:
1. Product: Maintain and innovate in product lines like the 3400 Phinney and Origin collections, which offer bold flavors and high cocoa content?.
2. Price: Continue positioning the premium price point as reflective of Theos ethical commitments and artisanal quality, but introduce smaller, lower-cost options to attract a broader customer base.
3. Promotion: Leverage partnerships, such as with Jane Goodall, and expand on digital marketing efforts via social media and influencer campaigns?.
4. Place: Increase distribution channels by partnering with larger retailers beyond the Pacific Northwest, and focusing on organic and health-food chains across the U.S.?.
References
Zacharakis, A., Corbett, A. C., & Bygrave, W. D. (2020). Entrepreneurship (5th ed.). John
Wiley & Sons.
