Strategic Marketing

Milena Yorgova – 22142248

Liliana Militaru – 22138790
Georgiana Eliza Hutu - 22145117

Introduction
This presentation aims to develop a strategic marketing plan for entering
a new market, especially how Hotel Chocolat will expand its
international presence in France. Different elements of the marketing
mix and what is the best approach to the market situation will be
discussed. Moreover, the presentation provides a CBBE model to
explain how the company can build a strong brand image. Various
methods of marketing communication are analysed in order to reach the
audience. In addition, ways to measure success will be reviewed as well
as ways for future improvements.
 Hotel Chocolat is a British company
founded in 2004 by Angus Thirlwell and
Peter Harris. It is the only British
chocolatier to grow cocoa on its own
plantation. The company produces luxury
chocolate products selling them via 130
own physical shops in the UK, US, Japan
and online. Hotel Chocolat developed the
world’s first single-côte chocolate bar. In
2012 the company opened the first
boutique Boucan hotel where luxury,
chocolate and wellbeing come together.
Hotel Chocolat also created a medical
centre for a cocoa growing society in
Ghana which provides healthcare to more
than 5000 people (Hotel Chocolat, 2021).

Marketing mix - Adaptation

and Standardisation

Standardisation is a specific
framework of standards that ensures
that all processes related with a
product creation are the same
worldwide. This process assures the
same product could be sold across
international markets without
 Hotel Chocolat -
Standardisation strategy
Hotel Chocolat keeps high standards in
terms of using premium-style cocoa,
quality ingredients, packing,
sustainability and ethics. By
implementing a Standardisation
strategy, the company treats the whole
world as one market and one product
can meet the needs of people
everywhere. Although the product range
may vary to meet local tastes, the basic
recipes and the store vision are the
same.

Hotel Chocolat – 7P’s

Product Each product has an authentic recipe and a unique vision

Price The company follows a premium pricing strategy

Place 130 own physical shops in the UK, US, Japan, and own website

Promotion An omnichannel strategy – online platforms, social media, email campaigns, offline
promotion via real events, print advert, TV commercials, billboards, etc.

People All chocolate products are handmade. Also, the human factor has great power in the
marketing process.

Process Well-developed manufacturing process and the final products reach the audience
through digital platforms, delivery or in the physical stores.
 European Premium Chocolate Market
is a moderately consolidated market
and France dominates. The France
premium chocolate market is
growing at a rate of 8.84% CAGR
(Compound annual growth rate) in
the period 2016-2026. At the same
time, EU chocolate market is highly
competitive, with the presence of
leading players such as Ferrero,
Lindt, Mondelez International
(Mordor Intelligence, 2021).

CBBE Model
Customer's attitude directly
affects brand's success. Customer-
based brand equity model has
been introduced by Kevin Keller
and helps businesses build a
strong brand identity. The four
levels allow marketers understand
what can motivate customers to
buy. In this way, the company can
recognize and take advantage of
opportunities, as well as deal with
threats (Kotler & Keller, 2012).
 • Brand Identity. Hotel Chocolat is the leading UK
premium chocolate company, making innovative and
accessible luxury chocolates (Hotel Chocolat, 2021).
• Brand Performance. Key product ranges involve over
120 chocolate flavours, gift sets, cocoa-based beauty,
cocoa-infused alcohols, etc. All products meet the Public
Hotel Health England targets to control sugar levels in chocolate
(Hotel Chocolat, 2020). Moreover, the company extends
Chocolat – dietary luxury, vegan and gluten free products. Currently,
Hotel Chocolat products are already available in John
CBBE model Lewis shops. Likewise, the brand has started partnerships
with Waitrose and other ‘poshest’ of supermarkets. In this
way, Hotel Chocolat can maintain a high-end offering by
selling a small range of core products at a similar price
point as their own stores (Bottaro, 2020).
• Consumer Responses. The brand
has a good reputation in regard to
the product quality, design,
packaging, service, etc.
• Consumer-Brand Relationship.
Hotel Chocolat reaches its audience
through retails, digital platforms,
subscription options, and premium
partners. Developing new types of
subscriptions facilitates the regular
receipt of Hotel Chocolat products.
The company also offers VIP.ME
reward card shame for its loyal
customers (Hotel Chocolat, 2021).

IMC - marketing communication methods

• Advertising
Each advertising campaign of Hotel Chocolat has
a different goal, but at the same time they work
together to increase the sales. For instance, the
busy transport hubs, shop windows, magazines
are great options for promoting the brand. Email
marketing is another valuable method of
communication and business advertising used by
Hotel Chocolat. The target audience can directly
receive relevant information about the brand for
attractive offers, news, promotions and more. The
company can use all these types of advertising
when it enters the market in France.
 IMC - marketing communication methods
• Digital marketing.
Currently, Hotel Chocolat has own website
(www.hotelchocolat.com) and blog
(www.hotelchocolat.com/uk/blog). They provide
information about the products, pictures, purchase
options as well as links to other social media platforms
where the company interacts with the audience.
Another effective marketing approach is providing a
Virtual Tasting Experience. Hotel Chocolat provides
this option for its customers, who can order and taste
the products in the comfort of the own home. During
this interactive chocolate tasting, organized by a live
chocolate expert, consumers will learn all about the
world of chocolate

IMC - marketing communication methods

Sales promotions
Attractive offers and discounts are a great way to gather new customers,
as well as to gain brand popularity. Lower prices mean affordability and
incentive for more purchases. Moreover, this is a way to give more
worth to the consumers and at the same time helps selling excess
products (Clow & Baack, 2013). Sales promotions may be good
approach for cost leadership strategy. However, excessive price
discounting trains buyers to focus on the low price as the source of
value with a particular product. And then, it will be difficult to get them
to pay regular price for the same product.
In terms of Hotel Chocolat, as a high-end brand, sales promotions can
alienate the brand customers because they have a perception of luxury,
quality and exclusiveness. In other words, conducting regular sales can
undermine this perception and destruct the brand reputation.
 Measurement of success
• Market share
This is the percentage of the total revenue or sales
in a market that makes up the company's business.
Market share shows how successful the business
is over competitors and the effectiveness of
marketing, advertising, and new product
development.
Hotel Chocolat delivered revenue growth of 21%
to £165 million while pre-tax profit increased
from £2.4 million to £10.1 million. The rapid
digital growth offsets retail disruption during the
pandemic (Crux, 2021). The first TV campaign
for the Velvetiser in-home hot chocolate system
led to a 42% upside from current share price
levels. Moreover, with the introduction of ‘Gentle
Farming Charter’, Hotel Chocolat increases its
commitment to becoming the world’s most

Measurement of success
• ROI
It is a ratio that compares the
profit or loss on an investment to
its cost. This is a marketing tool
for measuring the probability of
getting a return from an
investment. This is easy to
calculate, but it does not take into
account the retention period of an
investment, which can be a
disadvantage when assessing
investment alternatives (Richter,
2012).
 Strategic marketing is that part of the
business responsible for staying
ahead of the competition and
generate profit. Moreover, it helps
business use minimum resources
with maximum productivity.
Strategic marketing involves
Conclusion segmenting the market and
understanding its current functional
value. Thus, the company can easily
enter new markets and find the right
basis for its products. In addition, by
prioritising and studying the
audience, the company can connect
with the right demographic and
generates more customers.

References
● Bottaro, G. (2020) Hotel Chocolat to boost international expansion in 2020.
Available at: https://www.proactiveinvestors.co.uk. Accessed – 28/11/2021.
● Clow, K. & Baack, D. (2013) Integrated Advertising, Promotions and Marketing
Communications. (Global edition), 6th Edition. Harlow: Pearson.
● Crux, J. (2021). Hotel Chocolat beats expectations on web sales surge. Available
at: https://www.sharesmagazine.co.uk. Accessed – 03/01/2022.
● Farris, P. (2017) Key Marketing Metrics: The 50+ Metrics Every Manager Needs
to Know. Pearson, 2017.
● Gaille, L (2020). 17 Biggest Advantages and Disadvantages of Advertising.
Available at: https://vittana.org. Accessed – 05/01/2022.
● Hotel Chocolat (2021). Results and Reports. Available at:
https://www.hotelchocolat.com/uk. Accessed – 28/11/2021.
● Hotel Chocolat (2020). Annual report and accounts 2020. Available at:
https://www.hotelchocolat.com/on/demandware.static. Accessed – 15/12/2021.
● Richter, T (2012). International Marketing Mix Management: Theoretical