Chocolate El Rey Report

  Chocolates EI ReyCase Report Submitted by  Lalitha GunnamGrace FangOct 15 th , 20151Is Jorge Redmond dream of making Venezuelan cocoa beans and chocolate world famousrealistic and achievable why? Jorge Redmond’s dream of making Venezuelan cocoa beans and chocolate world famouscan be realistic and achievable with proper brand positioning, large market demand and effectivemarketing programs Firstly, Redmond could position Chocolates El Rey in a way that differentiatefrom other chocolates, such as its single-srcin premium cocoa ingredient, combined taste andspecial aroma Also, the existing brand image in the global market with increased international salescreated a better opportunity for Chocolates EI Rey to reinforce its unique and high quality brandimageSecondly, the chocolate industry is a huge industry that entails a large market potential thatVenezuela could penetrate to It is not only about the finished chocolate to retail market, but also asraw material to food services, beverages, and industrial In 1995, EI Rey opened a new plant whichproduced more chocolate types to satisfy more customers with diverse demands Moreover, in orderfor Redmond to fulfill his ambition, he should understand the value that Venezuelan cocoa beanshad for Chocolate EI Rey and the value that chocolate had for the consumers, which was seen asdecadent, possessing a sensuality and seductiveness Thirdly, Redmond had successfully pitched EI Rey chocolates to top chefs and restaurantsall over the world while expanding into the international food service markets Redmond invited topchefs and writers of gourmet magazines to visit “Cacao Route”, witnessing how cocoa was planted,  harvested and processed, as well as EI Rey’s plant, where chocolate was produced from thebeginning to the end These visits not only sell EI Rey chocolate but also Venezuela, a country withan exquisite cocoa bean production In addition, EI Rey held annual tastings at international foodfair to demonstrate its high quality and to increase brand awarenessHowever, Jorge should also consider the unstable political conditions and high inflation ratein Venezuela and try to control the negative impacts on his chocolate business 2What are the pros and cons of using country-of-srcin as part of his branding strategy?Pros: • Venezuela has ideal combination of temperature, soil, and rainfall for cultivating cocoa, and itsentire cocoa production was either “Criollo” or “Trinitario” which were both considered to bepremium cocoa beans • Venezuela cocoa beans not only have high quality, but also have a more unique and combinedflavor and a flowery aroma, which other cocoa beans don’t have This can be a great point inadvertising to increase positive brand awareness • The variety and country of srcin of cocoa beans is very important to the flavor of finishedchocolate Some premium brands also began to advertise the type or srcin of the cocoa beansused in their production • Chocolate EI Ray was the only chocolate producer who used only single-srcin beans of thefinest qualities available This is an great opportunity to apply a hungry marketing strategy,which allows the company to achieve control of supply and demand while maintaining a highcommodity price and profit purpose Cons:   • Venezuela’s cocoa production only accounts for 05% of world production, which means vey