Pricing Strategy
Chocolate Bliss’s flavored truffles’ pricing strategy is affected by competitor pricing. Since Ghirardelli Gourmet truffles are aimed at the same premium segment, price plays an important part in how the products are viewed. There are two purposes to a price – to represent the quality of the product adequately, and to create a sense of exclusivity for the purchasers (Lancaster & Massingham, 2017). As such, if the quality of Chocolate Bliss’s products is comparable to that of Ghirardelli, it is possible to match the price or increase it by a little margin, to present oneself as superior. Decreasing the price will not achieve results (customers can afford good products), while increasing it too much would alleviate Chocolate Bliss to another pricing bracket, which would not be desirable (Lancaster & Massingham, 2017).
Competitor Pricing
Ghirardelli’s current prices range between 8 and 50 USD for the majority of their products (“All chocolate,” 2021). The prices vary by the quantity of the product and its purpose, with many items offered for cooking purposes. Chocolate Bliss should aim to match some of their more high-end products in order to present themselves as premium products, while matching or exceeding quality (Lancaster & Massingham, 2017). The company should not attempt to drop the prices down, due to the risk of falling out of the premium segment.
Recent Changes to the Market Place
Recent changes to the market place have been largely in part due to COVID-19 restrictions, which limited the use of many traditional channels of distribution, such as clubs, gatherings, high-end concerts, conferences and the like (Cadby, 2021). Many shops have also been closed or severely limited due to the epidemic. As a result, many individuals are forced to stay at home, which affects purchasing behaviors.
Effects of Changes on the Target Market (Persona)
COVID-19 has a significant effect on the target market population. Namely, due to restrictions, many small businesses were forced to close or went bankrupt, significantly reducing the number of people that fit into the described persona (Cadby,2021). In addition, the amount of spare cash in middle-class and upper-middle class citizens dwindled significantly, further limiting their purchasing capabilities (Cadby, 2021). As such, the target market personas, which are women of 50 years of age, married, and owners of small businesses, has been significantly reduced in number and desire to spend money on sweets, such as Chocolate Bliss’s flavored truffles (Cadby, 2021). It would be prudent to expand the portfolio of potential customers to include men and women of other ages, due to the ubiquitousness of chocolate as a well-loved treat.
Potential Distribution Channel
Due to the limitations of standard distribution channels, Chocolate Bliss should review the potential of e-marketing and home deliveries in order to present their goods to potential customers (Lancaster & Massingham, 2017). Enabling individuals to purchase chocolate truffles from the comfort and safety of their homes would help avoid many of the restrictions imposed by COVID-19 (Cadby, 2021). It will allow the company to detach itself from the shops and distribution centers while fostering a close relationship with customers and ensure their loyalty for the future (Cadby, 2021). Similar relations can also be formed with businesses and organizations that were deemed essential, as there is a potential interest for purchasing goods to stock the few face-to-face meetings still being held.
References
All chocolate. (2021).Web.
Cadby, J. (2021). Can COVID-19 melt the craft chocolate industry?. Food Ethics, 6(2), 1-14.
Lancaster, G., & Massingham, L. (2017). Essentials of marketing management. Routledge.