Harvard Case - Toblerone Pricing at Airport Duty-Free Shops
"Toblerone Pricing at Airport Duty-Free Shops" Harvard business case study is written by Nirmalya Kumar, Lipika Bhattacharya. It deals with the challenges in the field of Marketing. The case study is 12 page(s) long and it was first published on : Jan 21, 2024
At Fern Fort University, we recommend Toblerone implement a multi-tiered pricing strategy at airport duty-free shops, leveraging product bundling and limited-edition offerings to enhance value perception and drive sales. This strategy will cater to diverse customer segments, optimize revenue generation, and strengthen Toblerone's brand positioning as a premium, travel-associated indulgence.
2. Background
The case study focuses on Toblerone, a Swiss chocolate brand facing challenges in its airport duty-free sales. Despite high brand recognition and a strong association with travel, Toblerone's sales were lagging behind competitors. The key protagonist is the Toblerone management team, tasked with developing a pricing strategy to boost sales and maintain brand value.
3. Analysis of the Case Study
To analyze the situation, we'll employ a framework combining SWOT analysis and Porter's Five Forces, focusing on the airport duty-free environment:
Strengths:
- Strong brand recognition: Toblerone enjoys high brand awareness and positive associations with travel and Switzerland.
- Unique product: The distinctive triangular shape and honey-and-nougat filling offer a unique selling proposition.
- Premium positioning: Toblerone is perceived as a high-quality, premium chocolate brand.
Weaknesses:
- Price sensitivity: Consumers are often price-conscious in duty-free shops.
- Limited product variety: Toblerone's product line lacks diversity compared to competitors.
- Lack of targeted marketing: Toblerone's marketing efforts aren't tailored to the airport duty-free environment.
Opportunities:
- Growing travel market: The global travel industry is experiencing steady growth, presenting a potential for increased sales.
- Digital marketing: Utilizing digital channels can reach a wider audience and personalize marketing messages.
- Product innovation: Introducing new flavors, sizes, and limited-edition products can attract new customers.
Threats:
- Competition: Toblerone faces intense competition from other chocolate brands in the duty-free market.
- Economic fluctuations: Global economic downturns can impact consumer spending and duty-free sales.
- Changing consumer preferences: Evolving consumer tastes and preferences could impact demand for Toblerone.
Porter's Five Forces:
- Threat of new entrants: High barriers to entry due to brand recognition and established distribution networks.
- Bargaining power of buyers: Moderate, as consumers have alternative choices but may be willing to pay a premium for Toblerone.
- Bargaining power of suppliers: Low, as Toblerone has access to various suppliers for raw materials.
- Threat of substitutes: High, as numerous other chocolate brands and confectionery options exist.
- Competitive rivalry: High, with intense competition from established brands and emerging players.
4. Recommendations
To address Toblerone's challenges and capitalize on opportunities, we recommend the following:
1. Multi-Tiered Pricing Strategy:
- Base Price: Maintain a competitive base price for standard Toblerone bars to cater to price-sensitive consumers.
- Premium Price: Offer larger sizes, special editions, and gift sets at a premium price to appeal to luxury-seeking travelers.
- Bundling: Create attractive bundles combining Toblerone with complementary products like Swiss coffee, wine, or travel accessories, offering value for money.
2. Targeted Marketing & Branding:
- Digital Marketing: Utilize targeted advertising on social media platforms like Instagram and Facebook to reach travelers and promote limited-edition offerings.
- Airport-Specific Promotions: Partner with airport retailers to offer exclusive discounts and promotions to travelers.
- Brand Storytelling: Leverage the brand's Swiss heritage and association with travel to create compelling narratives that resonate with consumers.
3. Product Innovation:
- Limited-Edition Flavors: Introduce seasonal or region-specific flavors, like 'Swiss Alps' or 'Mediterranean' Toblerone, to create excitement and exclusivity.
- Travel-Themed Packaging: Design unique packaging that reflects travel themes, such as iconic landmarks or travel destinations.
- Collaborations: Partner with other brands in the travel industry to create co-branded products.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core competencies and consistency with mission: The proposed strategy aligns with Toblerone's brand positioning as a premium, travel-associated indulgence.
- External customers and internal clients: The multi-tiered pricing strategy addresses the needs of both price-sensitive and luxury-seeking travelers, while the marketing and product innovation efforts aim to enhance customer experience.
- Competitors: By offering unique product bundles, limited-edition offerings, and targeted marketing, Toblerone can differentiate itself from competitors and attract a wider customer base.
- Attractiveness: The strategy is expected to increase revenue and profitability by leveraging pricing power, enhancing brand equity, and driving sales through product innovation and targeted marketing.
6. Conclusion
By implementing a multi-tiered pricing strategy, leveraging digital marketing and product innovation, and strengthening brand storytelling, Toblerone can effectively address its challenges in the airport duty-free market. This approach will enhance brand value, attract new customers, and drive revenue growth, solidifying Toblerone's position as a premium, travel-associated indulgence.
7. Discussion
Alternative options include:
- Price reduction: While this could attract price-sensitive consumers, it risks diluting brand value and eroding profit margins.
- Focus on existing product lines: This approach would limit growth potential and miss opportunities to attract new customers.
Key assumptions include:
- Consumers are willing to pay a premium for limited-edition products and unique bundles.
- Toblerone's marketing efforts will effectively reach target audiences.
- The travel market will continue to grow, providing opportunities for increased sales.
8. Next Steps
To implement the recommendations, Toblerone should:
- Develop a detailed pricing strategy: Define specific price points for different product tiers and bundles.
- Implement digital marketing campaigns: Launch targeted advertising campaigns on social media platforms.
- Collaborate with airport retailers: Negotiate exclusive promotions and product placement opportunities.
- Develop a product roadmap: Outline new product launches, limited-edition offerings, and packaging designs.
By taking these steps, Toblerone can effectively navigate the competitive airport duty-free market, enhance brand value, and drive sustainable growth.
Hire an expert to write custom solution for HBR Marketing case study - Toblerone Pricing at Airport Duty-Free Shops
more similar case solutions ...
Case Description
This case discusses Toblerone chocolates' pricing strategy at duty-free shops in international airports and entails 15-20 minutes of reading time. It analyses how the world-renowned Swiss chocolate brand Toblerone created a successful market strategy for duty-free shopping, and why it is considered one of the most iconic brands in duty-free stores worldwide. Central to the case is the assessment of Toblerone's variable pricing strategy across different airports, and whether duty-free prices are lower than local store prices. What is the rationale behind Toblerone's pricing strategy? Is duty-free shopping actually cheaper? Adding depth to the analysis, the case also evaluates the pricing strategy of other products such as duty-free favourites like alcohol brand Johnnie Walker and electronics brand Apple iPhone, providing valuable comparisons. The Teaching Note supplements the case by comparing Toblerone prices to Dairy Milk, fostering a more comprehensive discussion. The goal is to offer insights into Toblerone's strategic approach to pricing within the unique context of duty-free markets and to stimulate thoughtful discussion on its sustainability and effectiveness in meeting consumer expectations.
🎓 Struggling with term papers, essays, or Harvard case studies? Look no further! Fern Fort University offers top-quality, custom-written solutions tailored to your needs. Boost your grades and save time with expertly crafted content. Order now and experience academic excellence! 🌟📚 #MBA #HarvardCaseStudies #CustomEssays #AcademicSuccess #StudySmart Write my custom case study solution for Harvard HBR case - Toblerone Pricing at Airport Duty-Free Shops
Hire an expert to write custom solution for HBR Marketing case study - Toblerone Pricing at Airport Duty-Free Shops
Toblerone Pricing at Airport Duty-Free Shops FAQ
What are the qualifications of the writers handling the "Toblerone Pricing at Airport Duty-Free Shops" case study?
Our writers hold advanced degrees in their respective fields, including MBAs and PhDs from top universities. They have extensive experience in writing and analyzing complex case studies such as " Toblerone Pricing at Airport Duty-Free Shops ", ensuring high-quality, academically rigorous solutions.
How do you ensure confidentiality and security in handling client information?
We prioritize confidentiality by using secure data encryption, access controls, and strict privacy policies. Apart from an email, we don't collect any information from the client. So there is almost zero risk of breach at our end. Our financial transactions are done by Paypal on their website so all your information is very secure.
What is Fern Fort Univeristy's process for quality control and proofreading in case study solutions?
The Toblerone Pricing at Airport Duty-Free Shops case study solution undergoes a rigorous quality control process, including multiple rounds of proofreading and editing by experts. We ensure that the content is accurate, well-structured, and free from errors before delivery.
Where can I find free case studies solution for Harvard HBR Strategy Case Studies?
At Fern Fort University provides free case studies solutions for a variety of Harvard HBR case studies. The free solutions are written to build "Wikipedia of case studies on internet". Custom solution services are written based on specific requirements. If free solution helps you with your task then feel free to donate a cup of coffee.
I’m looking for Harvard Business Case Studies Solution for Toblerone Pricing at Airport Duty-Free Shops. Where can I get it?
You can find the case study solution of the HBR case study "Toblerone Pricing at Airport Duty-Free Shops" at Fern Fort University.
Can I Buy Case Study Solution for Toblerone Pricing at Airport Duty-Free Shops & Seek Case Study Help at Fern Fort University?
Yes, you can order your custom case study solution for the Harvard business case - "Toblerone Pricing at Airport Duty-Free Shops" at Fern Fort University. You can get a comprehensive solution tailored to your requirements.
Can I hire someone only to analyze my Toblerone Pricing at Airport Duty-Free Shops solution? I have written it, and I want an expert to go through it.
🎓 Struggling with term papers, essays, or Harvard case studies? Look no further! Fern Fort University offers top-quality, custom-written solutions tailored to your needs. Boost your grades and save time with expertly crafted content. Order now and experience academic excellence! 🌟📚 #MBA #HarvardCaseStudies #CustomEssays #AcademicSuccess #StudySmart Pay an expert to write my HBR study solution for the case study - Toblerone Pricing at Airport Duty-Free Shops
Where can I find a case analysis for Harvard Business School or HBR Cases?
You can find the case study solution of the HBR case study "Toblerone Pricing at Airport Duty-Free Shops" at Fern Fort University.
Which are some of the all-time best Harvard Review Case Studies?
Some of our all time favorite case studies are -
Can I Pay Someone To Solve My Case Study - "Toblerone Pricing at Airport Duty-Free Shops"?
Yes, you can pay experts at Fern Fort University to write a custom case study solution that meets all your professional and academic needs.
Do I have to upload case material for the case study Toblerone Pricing at Airport Duty-Free Shops to buy a custom case study solution?
We recommend to upload your case study because Harvard HBR case studies are updated regularly. So for custom solutions it helps to refer to the same document. The uploading of specific case materials for Toblerone Pricing at Airport Duty-Free Shops ensures that the custom solution is aligned precisely with your needs. This helps our experts to deliver the most accurate, latest, and relevant solution.
What is a Case Research Method? How can it be applied to the Toblerone Pricing at Airport Duty-Free Shops case study?
The Case Research Method involves in-depth analysis of a situation, identifying key issues, and proposing strategic solutions. For "Toblerone Pricing at Airport Duty-Free Shops" case study, this method would be applied by examining the case’s context, challenges, and opportunities to provide a robust solution that aligns with academic rigor.
"I’m Seeking Help with Case Studies,” How can Fern Fort University help me with my case study assignments?
Fern Fort University offers comprehensive case study solutions, including writing, analysis, and consulting services. Whether you need help with strategy formulation, problem-solving, or academic compliance, their experts are equipped to assist with your assignments.
Achieve academic excellence with Fern Fort University! 🌟 We offer custom essays, term papers, and Harvard HBR business case studies solutions crafted by top-tier experts. Experience tailored solutions, uncompromised quality, and timely delivery. Elevate your academic performance with our trusted and confidential services. Visit Fern Fort University today! #AcademicSuccess #CustomEssays #MBA #CaseStudies
How do you handle tight deadlines for case study solutions?
We are adept at managing tight deadlines by allocating sufficient resources and prioritizing urgent projects. Our team works efficiently without compromising quality, ensuring that even last-minute requests are delivered on time
What if I need revisions or edits after receiving the case study solution?
We offer free revisions to ensure complete client satisfaction. If any adjustments are needed, our team will work closely with you to refine the solution until it meets your expectations.
How do you ensure that the case study solution is plagiarism-free?
All our case study solutions are crafted from scratch and thoroughly checked using advanced plagiarism detection software. We guarantee 100% originality in every solution delivered
How do you handle references and citations in the case study solutions?
We follow strict academic standards for references and citations, ensuring that all sources are properly credited according to the required citation style (APA, MLA, Chicago, etc.).