Chocolates El Ray Business Case Review

2121 words 9 pages
Chocolates El Rey Case
Chocolates El Rey, a medium sized Venezuelan chocolate company, produces top-quality chocolate made with single-origin Venezuelan cocoa beans. Jorge Redmond, the CEO of Chocolates El Rey, called a meeting with senior management in late November 2006 to discuss the company’s growth strategy. El Rey can accomplish this task through many ways; growing the United States industrial market using its own brand name, relocating their plants to low-income countries, or to scale up the retail segment in the United States by using multi-origin cocoa bean chocolate. Each of these viable alternatives to expand El Rey have positive and negative side effects. El Rey has come a long way since its founding in 1929; yet, the
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This would make it easier for El Rey to expand and also help to solve the problem of using the limited resources of Venezuela. El Rey also needs to create a marketing department, which will help them set up and develop an effective marketing strategy. A major chocolate competitor of El Rey, Nestlé has allocated resources through marketing their products to increase consumer awareness. El Rey is currently in the premium chocolate market, which is a limited market in terms of consumption. In the United States chocolate is consumed by 78% of the population, with only 14% of the consumption being premium chocolates. They should target their marketing plan towards the majority of chocolate consumers, non-premium chocolates in the Unites States. Senior management must decide how to implement these means in order to become a competitive retailer in the United States chocolate market. Many alternatives can be chosen to limit the problems El Rey has encountered to fortify Redmond’s vision, “to build a world-renowned business spanning cocoa production to the marketing of chocolate.”
Some alternatives for expansion can be accomplished by creating a greater focus on the food service sector in Venezuela, followed by expanding into other Latin American countries, and ultimately the United States. El Rey controls 70% of the food services market


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