Thorntons case study: enhancing sales in chocolate retail

Introduction

This report on Thorntons forms part of Datamonitor's case studies series, which explores business practices across a variety of disciplines and business sectors. It focuses on how the UK chocolate retailer has successfully turned its business around, from the slump of 2006 to sales growth in 2007.

Scope

Highlights

Reasons to Purchase

Gain insight into the methods used by important industry players to give them a competitive edge Identify specific areas for operational improvements Capitalize on the knowledge of experienced companies when entering a new niche or market

DATAMONITOR VIEW 1
CATALYST 1
SUMMARY 1
ANALYSIS 2
Thorntons has made important organizational and strategic changes in recent times 2
Poor results in 2006 lead to management changes 2
The new management has increased its marketing drive to revive consumer interest in the brand 2
Thorntons is expected to enhance its international business with more manufacturing facilities overseas 3
Thorntons achieves rise in Q3 sales after 2006 slump 3
Shift in consumer shopping behavior leads to change in sales push 4
Thorntons modernizes its existing stores and prepares for more store openings 4
Revamps online operations allowing for increased ability to personalize products 4
Thorntons increases its grocery store lines after successful Tesco trial 5
The changing consumer landscape - primarily influenced by health and premiumization - is heavily influencing chocolate product launches 5
Specialty/premium chocolates provide a strong platform for Thorntons 5
Thorntons actively targets the health, premium and responsibility trends with single origin and organic variants 6
Thorntons' merchandizing has been assisted by enhancing its non-chocolate production through licensing deals 7
APPENDIX 8
Case study series 8
Methodology 8
Secondary sources 8
Further reading 8
Ask the analyst 8
List of Tables
Table 1: Thorntons has updated its chocolate selection to have more premium characteristics 6
List of Figures
Figure 1: Thorntons' publicity stunt for Easter 2007 helped boost company sales 3
Figure 2: Thorntons Direct has been updated to allow consumers to personalize their gifts 4