thorntons casr study

S     W     O     T

Q2. Strategies adopted by Roger Paffard

Paffard developed a strategy of diversification, products development and strong brand name. He also expands the channels of distributions to increase market.

Paffard sees expansion as route to success. Expanding its portfolio to include such products as ice cream, liqueurs or sauces is seen as the most likely means of generating future growth.

Thorntons widen their products to respond to customers demand; and discontinued some products that were not profitable.  A greater emphasis was made on snack and impulse buys strategy to attract a wider range of customer.

Thorntons developed mail order and café Thorntons as a response to the seasonal pattern demand.

Mr Paffard development strategies were as follow:

• Concentration on packaging
• Opening and developing better and larger stores
• Increasing rate and scope of product innovation
• Repackaging and relaunch of the classic range
• Add new Swiss, American and Australian range
• Design chocolate for one person
• Penetration of children segment by created different themes like Dinosaurs, Fossils and Dalmatians spots.
• Penetrate the male and teenager market by development new products such as T-shirt, underwear etc.

Strategies adopted by Peter Burton

Peter Burton adopted a strategy of refocusing: consolidation and strong brand. He wanted to put the emphasis on the marketing and advertisement campaign. He also improved the like-for-like store sales. He also changes the strategy of store concept by created new design into the existing stores. He slowed down the expansion of stores to a more manageable figure.

He maintains and grows the business relation with major customers such as Marks & Spencer and Boots. He also seeks new business with other non-supermarket retailers.

Mr Burton main strategic priorities were:

• Driving like-for-like sales and margin
• refocusing and reducing the strategic initiatives
• Reduction in the company's product range
• Greater emphasis on product and packaging
• Innovation in the future developments at the Café Thorntons format, the combined cafe/chocolate shop concept.
• Deliver shareholder value in the future
• Relaunch the Continental range (widely recognised for their superb quality at reasonable prices.)
• Minimising less viable low volume products
• Reducing the Thorntons product range
• Maintain and develop Thorntons new presence on the Web.
• Increase Joint venture
• Long term shareholder value
• Takeover of Rival brand

Q3 Recommended strategy for Thorntons.

• Thorntons should develop more their venture with Café Thorntons
• Opportunities in franchising and partnership (The success of the Birthdays joint venture should be taken for example)
• Redesign the three key organisational processes: stock fulfilment; range management and trading management.
• Focus more on the family market which is currently under represented.
• Develop the medium term benefit of shareholder value.
• Build up on the Organic Growth
• Improve financial growth: reduce debt, increase profits, increase sales, reduce costs to at least inflation rate 5%