Hotel Chocolat Case Study Summary

288 Words2 Pages
A major increase in sales between 2000 and 2006 has made Hotel Chocolat’s competitors eager to find the key to the company’s success, leaving the founders to face the challenge of how to protect the business from plagiarism. Trademarking its name and all its products, although a widely-used defence mechanism, is not a satisfying solution here; with 30% of its products replaced by another annually in order to meet the demands of its customers and continuous product range expansions, it would become a burden, adding administrative costs and bureaucracy. Now a luxury provider, the company started in 1980s supplying mints, before moving to chocolate and, finally, rebranding in 2003 as Hotel Chocolat. With own cocoa plantation, 11 retail shops in popular tourist locations, a call centre and an online store, Hotel Chocolat is now reaching customers in the UK, USA and in Europe, with aspirations to become one of the world’s top chocolate brands. Despite these developments, Hotel Chocolat is not interested in offering department store concessions or own-label goods and wants to keep the number of its high street shops to the minimum in order to retain its premium brand image and uniqueness as well as keeping full control over staff training and storing conditions of its products. Its emphasis continues to be on high-quality ingredients, exquisite chocolate and meaningful engagement with customers. Although concerned about plagiarism, the company’s founder, Mr Angus Thirlwell, does not see the major chocolate brands as competitors; it is the high end sellers who offer packaged confectionary gifts that are a real threat. Yet, the Hotel Chocolat’s strength is its innovative approach and the company’s founder believes that it will keep them one step ahead of the

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