Pick a company (Thorntons) of your choice answer two question - Essay Example

Running Head: Thorton’s marketing Thorton’s marketing Inserts His/Her Inserts Grade Inserts 14 October 2012 1) Critically analyze the company’s (Thornton’s) marketing activities and results over the last 3 years? Describe the different environmental forces (micro/macro) that can affect the introduction and sale of the company’s products/services? (300 words)Thorntons was once a premium chocolate brand in UK and was considered among one of the luxury brands. However, in the recent years, Thornton’s has lost the position that it once had.

This is partly because of the changing competitor landscape and greatly because Thorntons failed to innovate. In terms of marketing activities, Thortons has failed to develop a strong positioning in the minds of the consumers. While it was previously characterized as a luxury brand, it is quickly loosing the perception given the recent economic conditions and the increasingly saturated market. Thorntons has thus failed to develop an edge over the competition despite being a well known brand. Thornton’s has been badly affected by the recent financial downturn.

This is because of the increasing price of the raw materials that impacts the price of the already expensive product. Also the consumers are left with low purchasing power given the recent recession. This is probably one reason behind the decrease in sales. The company is also impacted by change in consumer perception regarding sugar products including chocolate. With the increase in health and diet conscious public, Thorntons is negatively impacted, especially because Thorntons most important customers, which as women, are changing their attitude towards buying chocolate.

Even under all this negative turn of events, Thorntons may still be able to succeed given its perception in the minds of the customers as a premium chocolate brand (Clark). Also the UK confectionary market provides a pleasant picture for chocolate makers since it is a growing market with the highest market share taken by chocolate products (Datamonitor, 15)The competition for Thorntons has also increased as chocolates such as Hotel Chocolat and Lindt take on a more aggressive stance. Thorntons, with the increase in competition, did not manage to improve upon its products.

Thorntons failed to innovate with more brands and different taste (Richardson). 2) How did the Thorntons choose to respond to those environmental changes? (200 words)In the recent years, Thorntons has decided to move to selling its more commercial products in super-markets (Thorntons PLC, 2). Even though Thorntons has its own retail shop, it has moved on to sell in supermarkets where customers are given a choice of different chocolates. Given that Thorntons is a premium chocolate brand, this move may not have been ideal since it impacts the positioning of the brand in the minds of the customers.

Thorntons has also decided to change its focus from generating high profits through seasonal sales. For this, the company aims to sell chocolate during off-season times by developing birthday gift packages, thank you gift packages etc (BBC). This could be a good strategy given the fact that chocolates are usually given as gift items and the fact that people would prefer giving Thorntons chocolates as gifts since they are positioned as a premium chocolate brand. Also Thorntons has developed an online presence through its own website.

As the online world is becoming more proactive, Thornton’s decided to move on to the new platform. This may be a good move for developing a presence of the brand in the online world and to promote the brand but actual sales of the brand through online channels may be limited given the fact that chocolates are perishable items. However, Thortons may be able to bank on this medium of selling using the right promotional tactics.Work CitedBBC, Thortons set to close up to 180 shops, 2011, Retrieved from http://www.bbc.co.

uk/news/business-13939089, WebClark, Andrew, Thorntons: why the chocolate-maker has gone into meltdown, The Guardian, 2011, Retrieved from http://www.guardian.co.uk/business/2011/may/08/thorntons-chocolate-brand-goes-stale http://www.guardian.co.uk/business/2011/may/08/thorntons-chocolate-brand-goes-stale, WebData Monitor, Confectionary in the United Kingdom, 2011, Retrieved from http://www.datamonitor.com/store/Product/confectionery_in_the_united_kingdom?productid=A1F8E99A-DEC0-42FE-BA57-D8A9E925FCEF, WebRichardson, Tim, Where did Thornton go wrong, The Guardian, Retrieved from http://www.guardian.co.

uk/commentisfree/2011/jun/29/where-did-thorntons-chocolate-go-wrong, WebThornton’s PLC, Celebrating 100 Years and Planning for Our Future: Interim Report, 2012, Retrieved from http://investors.thorntons.co.uk/download/pdf/interim-report-2012.pdf, Web