See’s Candies vs. Ghiradelli Chcoolate

Life’s Little Luxury

Marketing 861: Consumer BehaviorPresented by: Spencer Jaffe & Natacha YarbroughDue: December 13, 2011

Introduction Overall US Chocolate market generates $10 billion in annual sales

Premium chocolate US market accounts for 12% of all sales (higher in Europe and Canada)

Premium chocolate is commonly referred to as “life’s little luxury.”

Key premium chocolate brands include Godiva, Ghirardelli, Lindt, See’s and Guylian

Ghirardelli Chocolate (Part 1) Founded in 1852 in San Francisco

Positioning: High Quality Chocolate

3% of Premium Chocolate Market– Ranks #1 supplier of premium chocolate

chips– Ranks #2 supplier of baking chocolate– Has 13% overall baking chocolate market

in US

Ghirardelli Chocolate (Part 2) Packaging

– Classy and consistent logo– Adjusts main color to allow for differentiation between flavors of a particular product line

Widespread Prominence – Major Discount Retailers (Target, Wal-Mart, Walgreens)

Online Presence – Facebook– YouTube Channel – Website

See’s Candies (Part 1)

Founded in 1921 in Los Angeles Sold to Berkshire Hathaway Inc.

in 1972 for $25MHas generated $1.3B in profits

over 30 yearsMotto: “Quality without

compromise.”

See’s Candies (Part 2) Packaging - Customization associated with holidays

Positioning - Quality products at affordable prices

Bulk discounts to consumers and businesses - Emphases on product value

Retail - US & Global

Online Presence - Facebook - LinkedIn - Website

Netnography ResearchGhirardelli Chocolate

• Facebook– 760,000 “Likes” – Open wall for Consumers Posts

• Nostalgia• Favorite Products• Recipe Sharing

– Advertisements for seasonal products

– Contests– Virtual Cooking Contests

See’s Candies

• Facebook– 470,000 “Likes”– See’s “controls” wall posts

– Advertisements• Product Promotions• Negative consumer feedback

posted under advertising threads

Interviews

PremiumNostalgia

ClassyConvenient Tradition

SeniorsvArIeTy

TouristSan Francisco

Overpriced

turtle Rabbit

Seal Dolphin

Holiday

GiftLion

Communications

Ghirardelli Chocolates• Consistent message of

“Quality”• “Leading Lady” Campaign• Signature Squares• Elegant Logo• Minimal Stores (more

online activity)

See’s Candies• Consistent message of “low

pricing”• Minimal Advertising• Bulk Pricing• Simple Logo• Many Stores/Locations

Recommendations for See’s

Stronger Online Presence

Create “Premium” Product Line

Strategic Ad Campaign for Holidays and Life Events

Increase Unit Sales

See’s Candies vs. Ghiradelli ChcoolateQ & A