Ethels Chocolate Lounges: Back to the Future - Assignment Example

Ethel’s Chocolate Lounges – A case study analysis This is a report based on the case study “Ethel’s Chocolate Lounges: Back to the Future? Chocolate Lounges Taste Sweet Success”. The report addresses the various issues such as consumer buying decisions, factors that influence the consumers to spend time and money at the lounge, the motivation factor, and the appeal of the lounges. In order to do so, the report first briefs the case study. The history of chocolate houses goes back to the seventeenth century when only the elite members of the society enjoyed the chocolate houses. But the trend of the chocolate houses was on a decline in the recent past. This is supported by the fact that the chocolate industry in the US has witnessed lesser than 3 percent growth since the 2000. Ethel Mars has tried to reinvent the chocolate houses in the US with its Ethel’s chocolate lounges. The decision and the strategy are backed by the fact that chocolate sales have increased in upscale retail outlets. The first lounge was opened in Lincoln Park neighborhood of Chicago in 2005 and since then, many more lounges have opened. Ethel’s lounges have breathed fresh life into the declining chocolate industry through its innovativeness both in the quality of the product and marketing of the lounges. Ethel’s chocolate lounges are a new experience for the consumers. It is targeted at varied demographic consumers. For consumers this is some thing new that they would want try out and enjoy. Unlike other consumer buying decisions this does not demand critical and logical thinking from the customer. Consumer’s decision to try out Ethel’s chocolate lounge is not a strategic one and the outcome of the decision does not make a serious impact on their lives. The decision to go to chocolate lounge is an impulsive decision and not a strategic decision. Hence, consumers would be more than happy to try this new experience. Also both in terms of time and money, this is not an investment the consumers will have to worry about too much. The investment of time and money in the current scenario is for the purpose of pleasure. The consumers do not expect any returns of their investment in the chocolate lounges except for quality time with friends and loved ones, and good quality for the price that they are paying. Hence, the best consumer buying decision that suits or explain the buying decision of the consumer’s of Ethel’s lounges is minor new purchase. Minor new purchases are those where the products are priced at a low or moderate price, and the product is not of prime importance to the customer. Also such a buying decision does not require great information search (Sharma, 2009). The risk involved in a minor new purchase is also minimal. Minor new purchase can be best described as an “unfamiliar brand in a familiar product category” (Madaan, 2009). Hence, minor new purchase is the consumer buying decision that best explains the choice of the consumers to indulge at Ethel’s. Ethel’s Chocolate lounges are a new phenomenon in the industry and there are various factors that draw the customers towards the chocolate lounges. One of the main factors that attract the customer is the innovation that the company has implemented in the product itself. It offers a wide variety of chocolate products, with great quality and taste. The taste is fresh and appeals to the customers. Also the prices that the products are offered at are affordable by all consumers. The reasonable prices along with great quality and prices make it very attractive to the consumers and influence their decision making. The customer service another important factor that attracts the customer. The company has ensured that the customers enjoy their experience at chocolate lounges. Customer satisfaction is regarded very highly by the company and the management has ensured that everything is in place to make the customer’s experience an enjoyable one at the lounge. An example of Ethel’s initiative to ensure great customer service is the way its menus are designed. The products in the menu consist of an image of the product and description of it. This is to make sure that the customers know exactly what they are ordering and are not surprised by what they are get on delivery. To add to all the great quality chocolate products, hot and clod beverages are made available for the customers. Hence, these factors explain how the customer service is vital part of the lounge and how it attracts the customer. But the most important factor that motivates the customer is an opportunity to enjoy quality time with their friends and loved ones. The socialistic environment created by the lounge is the prime driver for the customers to indulge in Ethel’s lounge. The designing of the stores is such that it gives a classy look as well as a hip hop one. It is very relaxing for the consumers in the lounge and also it has a neighborhood vibe to it. Even the couches (stuffed pink) and the accent in the stores are giving a homely feel to the whole place. Hence, this is the most important factor that motivates the customers the most. The Ethel’s experience appeals to socialistic needs of its consumers the most. In today’s highly competitive world, people are finding it very difficult to enjoy quality time with their friends and loved ones. People crave for a place where they can enjoy with no hassles and tensions. Ethel’s lounges aims at making this possible for its consumers by creating a homely atmosphere for its consumers. The Ethel’s encourage people to socialize by allowing them to spend more time in the lounge socializing instead having them to leave as soon as they are done with their order. Hence, extended lounging is an attraction for the consumers to fulfill their socialistic needs. This report has successfully explained how Ethel’s Lounge has successfully contributed to the emergence of a new trend in the chocolate industry. It has identified various factors that contribute to the attractiveness of the lounge from the consumer’s view point. It also discusses what it the experience at Ethel’s tries to appeal to the most. References Madaan, K.V.S. (2009). Fundamentals of Retailing. Tata McGraw-Hill Sharma, K. (2009). Marketing Management: How to Create, Win & Dominate Markets. New Delhi: Global India Publications Read More