QUESTIONS 1. Explain in which era of marketing that Awake Chocolate currently resides. Describe some ways...

  

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QUESTIONS 1. Explain in which era of marketing that Awake Chocolate currently resides. Describe some ways in which the company can move beyond the current stage into the next era of marketing. A Delicious Way to Get Energy In February 2013, the founders of Awake Chocolate faced the scrutiny of the Dragon's Den. One pointed question from former Dragon Kevin O'Leary concerned cash flow in the anticipated first year of business for their new product. One of the founders, Adam Deremo, stated that the company would likely be in the red in the first year because, as he stated, "... we need to make an investment in marketing." It is clear that Awake Chocolate appreciates and understands the importance of marketing for the company's success. This running case will look at how a group of former big-company executives made the shift from drinking coffees in boardrooms to making chocolate energy products destined to replace those boardroom coffees. When asked how Awake Chocolate came to be, Deremo stated that he along with cofounders Matt Schnarr and Dan Tzotzis were focused on one thing: understanding the customer. He noted that the idea for Awake Chocolate "... came complexly from a place of consumer insight." Adam was referring to the focus on understanding customer need before actually designing or making a product. This initial focus on what customers want before making what you want is an important lesson for anyone starting their own business. Too often would-be entrepreneurs are focused on a solution to a problem that either does not exist or has not been proven by asking the most important part of any successful business-the customer. The belief that created the foundation of Awake Chocolate was that consumers were searching to solve a problem: they could not find a pleasing way to consume products that provided them with energy. Adam noted that the unmet need was: "The ability to get energy in a way that tasted good." All of Awake's founders had experience with consumer products before starting the company. Most notably, experience working at Kraft and Pepsi allowed the founders of Awake to see what was happening in marketplace. Adam Deremo noted during his time at Pepsico that consumer tastes were impacting product choices by consumer product companies: "Competitors of Pepsi in granola bar space had added functional ingredients to bars." Companies began to realize that products that provided a notable energy boost were not that appealing, and there was opportunity for companies to add energy-based ingredients to other products. And a fundamental need in the food and drink space is, of course, taste. It would seem that customers seeking energy products were having to make sacrifices in order to get that burst. Adam observed: "The number one consumer objection to energy drinks was taste. Same problem that coffee had." So the idea for Awake Chocolate arose from a consumer dislike. The founders of Awake chose the vehicle of chocolate to deliver something that was normally presented to consumer in forms other than food. The result was Awake Chocolate, a North American success story in the food and energy product markets. By focusing on customer needs before anything else, the founders were able to create a novel product to meet those needs and create, as Adam Deremo said, "energy benefit in a food product." QUESTIONS 1. Explain in which era of marketing that Awake Chocolate currently resides. Describe some ways in which the company can move beyond the current stage into the next era of marketing. QUESTIONS 1. Explain in which era of marketing that Awake Chocolate currently resides. Describe some ways in which the company can move beyond the current stage into the next era of marketing. A Delicious Way to Get Energy In February 2013, the founders of Awake Chocolate faced the scrutiny of the Dragon's Den. One pointed question from former Dragon Kevin O'Leary concerned cash flow in the anticipated first year of business for their new product. One of the founders, Adam Deremo, stated that the company would likely be in the red in the first year because, as he stated, "... we need to make an investment in marketing." It is clear that Awake Chocolate appreciates and understands the importance of marketing for the company's success. This running case will look at how a group of former big-company executives made the shift from drinking coffees in boardrooms to making chocolate energy products destined to replace those boardroom coffees. When asked how Awake Chocolate came to be, Deremo stated that he along with cofounders Matt Schnarr and Dan Tzotzis were focused on one thing: understanding the customer. He noted that the idea for Awake Chocolate "... came complexly from a place of consumer insight." Adam was referring to the focus on understanding customer need before actually designing or making a product. This initial focus on what customers want before making what you want is an important lesson for anyone starting their own business. Too often would-be entrepreneurs are focused on a solution to a problem that either does not exist or has not been proven by asking the most important part of any successful business-the customer. The belief that created the foundation of Awake Chocolate was that consumers were searching to solve a problem: they could not find a pleasing way to consume products that provided them with energy. Adam noted that the unmet need was: "The ability to get energy in a way that tasted good." All of Awake's founders had experience with consumer products before starting the company. Most notably, experience working at Kraft and Pepsi allowed the founders of Awake to see what was happening in marketplace. Adam Deremo noted during his time at Pepsico that consumer tastes were impacting product choices by consumer product companies: "Competitors of Pepsi in granola bar space had added functional ingredients to bars." Companies began to realize that products that provided a notable energy boost were not that appealing, and there was opportunity for companies to add energy-based ingredients to other products. And a fundamental need in the food and drink space is, of course, taste. It would seem that customers seeking energy products were having to make sacrifices in order to get that burst. Adam observed: "The number one consumer objection to energy drinks was taste. Same problem that coffee had." So the idea for Awake Chocolate arose from a consumer dislike. The founders of Awake chose the vehicle of chocolate to deliver something that was normally presented to consumer in forms other than food. The result was Awake Chocolate, a North American success story in the food and energy product markets. By focusing on customer needs before anything else, the founders were able to create a novel product to meet those needs and create, as Adam Deremo said, "energy benefit in a food product." QUESTIONS 1. Explain in which era of marketing that Awake Chocolate currently resides. Describe some ways in which the company can move beyond the current stage into the next era of marketing.

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