Hotel
Chocolat
IMC critical evaluation
Company
background
Hotel Chocolat founded in 2004 is one of the British
best known cocoa growers and chocolatiers with manufacturing facility in
Huntingdon, Cambridgeshire. The retailer has more than 70 stores located in the
UK, internationally in the US (Boston and New York); and also Netherlands,
Denmark; and from 2010 also in the Middle East (Kuwait, Dubai, Bahrain). In
addition, it has got concession with John Lewis. Interesting idea is creating hotel Boucan in
St Lucia, West Indies in 2011- Rabot Estate. The luxurious hotel presents
unique interiors together with its cocoa restaurant and exteriors including
cocoa plantation. In addition, it also provides Cocoa Juvenate Spa (cacao
manicure, pedicure, massages, cacao facial etc.) and offers cocoa beauty
products. The company established new cocoa restaurant Rabot 1745 in September
2013 in London where the menu brings contemporary recipes consisting of extraordinary
ingredients combining sweet and salted tastes all together on one plate. The
fact that the company Hotel chocolat grows their own cocoa plantation makes it
different than other retailers offering chocolate products.
Hotel Chocolat is trying to attract non-price
sensitive upper-class customers, in other words, self-motivated,
individualistic group which is attracted by the products’ quality and design
before considering the price. The top quality is the indulgence driven by a
real experience for the consumers. Through the excellent direct selling and
product sampling at the stores, it is unlikely to leave without purchasing some
sweet treats. The brands offered by the retailer are Hotel Chocolat (stores),
Rabot (cocoa restaurants), and Roast + Conch (Cocoa cafes). Hotel Chocolat puts
special emphasis on luxury and vintage look of the product offerings (e.g. packaging)
as well as graphic design of their communication drivers used (e.g.
e-newsletters, catalogues or website). The goods are available to purchase
online and in Hotel Chocolat stores. The store interior and its design play a
big role, and their vision has been recognised by the retail week interior
awards ‘Best in Europe’ at one of their Roast+ Conch stores in Covent Garden. Apart
from that, Hotal Chocolat has been also awarded as well as one of the UK’s
‘CoolBrands’, ‘Great taste awards & the Academy of Chocolate Awards’ in
2009 and number 1spot in ‘Sunday times fast track 100’ (ranking fastest growing
private companies in the UK).
Internet/social
networking strategy
In today economic climate and particularly in this
competitive market where the company operates, it is very important to combine
both online and offline communication tools efficiently and cost-effectively. As
number of smart phone users radically increase every year, the CEO of Hotel
Chocolat Angus Thrilwell wants to be recognisable and attention-grabbing on
high street as well as in digital space.
Hotel Chocolat established partnership with the internet
marketing agency called Ambergreen in 2008 for 3 years. The strategy was
focused on Pay Per Click (PPC), choosing relevant adcopy and search engine
optimization (SEO) while complementing offline communication tools (e.g. direct
mail). The strategy helped Hotel Chocolat to decrease expenses costs by 19.5%
and rise in clicks by 16% (increase of 24% in revenue) and increased number of
visitors to the website (natural search went up by 53%).
More recently, the
company started to develop new fresh ideas within direct marketing and digital
space. The current internet strategy is partnership with Red Technology which
helps businesses to grow digitally (e.g. e-commerce, affiliates creation).
Hotel Chocolat created a global digital platform and the idea was to create
integration of its physical stores with their official website. One of the
growth drivers in direct marketing is technology. It is cost-effective and
provides retailer with customer data analysis. Customer can experience the same
attention and customer service anywhere (on move, in-store or at home) as well
as find all brands offered by the company under the one single domain. The
website is linked with Google Maps, Click and collect (at any store), fast
delivery with Shutl rapid fulfilment services (London-based tech company
matching online retailer with daytime local courier within 90 minutes), online
reservation at the restaurant or hotel, e-catalogue with focus on graphic
design (also option to request free printed version by post), gifting services
configuration (creating customer’s own gifting bag). Hotel Chocolat has also
detailed information about air partners and flights to St Lucia from different
destinations available on the website. In terms of direct response marketing,
consumer behaviour is controlled through feedback channels and reviews available
on the website. Customers are able to create their own account, rank the
products and write comments or suggestions. After subscribing in store or on
the website, customer receives special offers and info about sales promotion
every week.
Hotel Chocolat is very active on Pinterest (1264
followers), Instagram (1850 followers), Twitter (23 966), Facebook (72 387
fans), Linkedin, Google+ (mainly video uploads with various content- cocoa
recipes, launching new products by CEO, viral marketing ads) and vimeo.
|
|
(Source: https://vimeo.com/61209733, http://uk.westfield.com/stratfordcity/news-and-events/hotel-chocolat)
Hotel Chocolat tries to go viral!
The internet is the mirror of our everyday life,
therefore companies’ online communication strategies are reflection of offline
communication activities. On basis of that, many companies are trying to create
viral marketing strategies with a goal to entertain and get a huge amount of
attention fast (e.g. Lynx with augmented reality ad at Victoria Station or
T-Mobile dance at Liverpool street station). Hotel Chocolat has recently
created an idea of viral marketing in Westfield Shopping centre in London placing
a huge Christmas box with the sign ‘Pull the ribbon to unwrap me’. After pulling
the ribbon by random people in the shopping centre, Hotel Chocolat surprised
with music show and professional dancers.
.jpg)
(http://www.youtube.com/watch?v=M9UXRGOyvF0). The
video was posted on the 3rd December and already got more than 13
000 viewers.
Another example is creating film Beau Bunny that was
promoting Easter by, again, product sampling on high streets in all towns the
company operates. With his very current, elegant outfit, the promotional idea
matches company’s brand. The video is presenting all European market shares- capturing
Amsterdam, Copenhagen and London mainly. (https://vimeo.com/61209733)
Sales
promotion strategy
One of the company’s special approaches within the
customer engagement and product development strategy is Hotel Chocolat tasting
club.
The chief executive as well as innovative
entrepreneur of Hotel Chocolat Angus Thrillwell established his own ‘chocolate
bond’ in 2010 for 3 years. The bond was approved by Financial Services
Authority to grow his business more internationally. The CEO approached 100 000
members of the tasting club who had a certain deadline for applying. The
customers were actually the investors, and the idea came from them wanting to
be partners working closer with Hotel Chocolat. There were 2 types of
investments- £2000 (gross annual return- 6.72%) and £4000 (gross annual return-
7.29%). The returns were paid twice a week in chocolates delivery. The 3-year
investment program covered £3.7m. The bond scheme attracted the media- e.g.
retail week, telegraph, independent, CNN, realbusiness.co.uk, BBC news. (http://www.telegraph.co.uk/finance/businessclub/7887060/Hotel-Chocolat-closes-chocolate-bond-with-3.7m-fundraising.html)
How the membership for Chocolat tasting club works?
Members can decide whether or not to continue with
tasting after receiving the first introductory selection for £9.95. The
selections of the most recent recipes are made every month, but there are no
obligations as customers can also join tasting club every 8 or 12 weeks, and
that means they’re able to cancel an order at any time as well as change the
selection types. The benefits for being a member are the following: membership
pack including certificate for direct feedback and ranking products; exclusive
vouchers and offers available for only tasting club members; and welcome gift
(chocolate slab) as well as 5% off all online and in-store purchases (these
don’t include John Lewis purchases) and an access to 50% off on an exclusive
selection on the official website. Under the Hotel Chocolat competition every
month, members can win free selections of chocolate, but most importantly
holidays at Bounce Hotel Chocolat luxurious hotel in St Lucia.
|
|
·
|
|
CEO of Hotel Chocolate, Tasting Club
The company is focused on retention programme- tasting
club. The overall sales promotion strategy is all about free gift issued after
spending certain amount of money. The sales promotion strategy is therefore
oriented on long-term customer engagement- tasting club membership, and the
main short term oriented sales promotion strategy is linked to regular
updates within the main periods:
Mother’s day and Father’s day, Halloween, Valentine’s Day, Easter and
Christmas.
However, the best benefits are the ones available
for members of the tasting club.
Sponsorship
strategy
Hotel Chocolat had recently sponsored the big
fashion event ‘Cardiff fashion week’ in Cardiff, United Kingdom. This is
certainly very relevant fit between the two parties (Hotel Chocolat as well as
Cardiff fashion week event) in terms of targeting and positioning brands. The
fashion is in other words business of creating and selling new trends,
therefore the event reflects the ‘fancy’ image that has been established by
Hotel Chocolat’s innovative business strategies.
Sponsorship
is not considered to be measurable tool, therefore is under the above the line
communication tools. Every company’s vision when developing sponsorship
strategies is linked to establishing media coverage opportunities- mainly in
terms of publicity. Successful sponsorship should attract not just only media
owners but also influencers (e.g. bloggers).
This event is therefore considered to be absolutely
perfect chance for Hotel Chocolat to increase awareness of its business, and it
means that it is actually still possible to determine whether the sponsorship
worked well. The retailer was providing the guests with chocolate samples
before every catwalk show at the event.
The highlight of the Cardiff fashion week was its
final event, The Cardiff Retail Awards, which ranked companies through
assessing their marketing strategies, customer service, corporate social
responsibility and training policies. Hotel Chocolat was awarded as the best in
providing customer service. In addition to this, Hotel Chocolat invested into the right event in
terms of its brand and target audience (non-price sensitive customers).
Conclusion
As the bond was created to expand the business, this
might be the reason why the company doesn’t invest money into the advertising
and broadcast, but invests most into product development and digital growth. Regarding
its business expansion, the awards such as ‘fastest growing retailer’, and from
my own experience, it seems successful. 
