Back to the Future? Chocolate Lounges Taste Sweet Success

The chocolate house dates back to seventeenth century London, when members of societys elite would gather in luxurious surroundings to relax and sip on hot chocolate. Later, Europeans expanded on that idea and developed solid chocolate treats that sold in upscale boutiques. Lacking the resources and economy of established continentals, bootstrapping American settlers pioneered the development of cheaper chocolate bars for the masses.

Centuries have passed, however, and the American palate has tired of the taste of mass-produced chocolate. The U.S. chocolate industry has experienced growth of less than 3 percent since the turn of the millennium, and the lack of industry innovation has left a bad taste in chocolate purveyors mouths, too. Enter Ethels Chocolate Lounges, named in honor of the matriarch of the Mars family, who founded the candy company with her husband Frank in 1911.

Now Ethel Marss name adorns the signs at the companys latest attempt to breathe fresh life into chocolate. Aware that chocolate sales at upscale retail outlets, like Godiva and Starbucks, grew by nearly 20 percent from 2002 to 2004, Mars opened Ethels Chocolate Lounge in the Lincoln Park neighborhood of Chicago in April 2005. More Ethels have opened since then, and the chic chocolate houses are Marss bet that well-heeled and sweet-toothed consumers will take to premium chocolate the same way that well-to-do coffee lovers flock to Starbucks for high-priced java.

Ethels Lounges are designed to coddle patrons in the lap of luxury, but Mars president John Haugh maintains that what makes Ethels special is that it offers approachable gourmet chocolate. In other words, you dont have to be a millionaire to enjoy the sweet taste of the good life.

Prices are not for everyones wallet, however. Truffles and Tea for Two, which features all 11 of Ethels truffles served on a silver platter, sells for $15. Chocolates and Cocoa for Two includes two cocoas and 10 pieces of chocolate for $18, and a box of 48 chocolates is $42. Five Collections offer over 50 individual chocolates that sell for between $0.90 and $1.50 a piece.

Supporting Haughs claim of approachability, the menus at Ethels feature icons and descriptions of the chocolates contents so that customers wont experience an unwanted filling surprise. A multitude of hot and cold beverages give visitors more reasons to extend their stays.

But its not just the chocolate that makes Ethels such a desirable destination. Advertising describes Ethels as a place for chocolate and chit-chat. Generously stuffed pink couches with brown accents combine upscale modern and traditional looks to give the stores a hip and classy feel. For those who dont immediately get it, a sign behind the counter reads, Chocolate is the new black. The stores appeal is their relaxing ambience and neighborhood vibethese shops encourage socializing and extended lounging. The effect is carefully planned like a modern American coffee house. Marss research revealed that even calorie-conscious consumers will splurge for the good stuff as long as a broader social experience comes with it.

Parallels to the Starbucks-led American coffee revival are obvious and inescapable. Confectionary industry insiders note that chocolate cafs are taking hold, and research confirms their belief. Datamonitor, a research firm specializing in trend identification, described chocolate as the new coffee on its list of the top ten trends to watch in 2006. The popularity of the Chocolate Bar in New York, billed as a candy store for grown-ups, and South Bend Chocolates ten chocolate cafs shows that the trend is for real. Even some Hersheys stores now offer seating for patrons.

Joan Steuer, president of Chocolate Marketing, claims that, for women, enjoying chocolate in a luxurious lounge is like taking a candle-lit bubble bath. She notes, too, that much of the appeal is that the experience is testimony to the persons upward mobility. Its a perfect way to cater to the American desire to have the best that money can buy.

1. Keeping the familiar Mars brand name attached to the new Ethels Chocolate Lounges allows marketers to take advantage of:

stimulus generalization

selective retention

stimulus discrimination

motivation

justification

2. The best way for Ethels Chocolate Lounges to influence ambivalent customers to purchase the companys products would be to

send postpurchase thank you letters.

offer guarantees.

display its product superiority in advertising.

reassure consumers that their product is just like other Mars products.

cater to a wide variety of consumers.

3. When an Ethels Chocolate Lounge first opens in a city, consumers probably use ________ when deciding to spend $42 on a box of chocolates.

a cognitive decision

routine response behavior

limited decision making

extensive decision making

specialty choicing

4. If a manager at Mars created a short brochure about the concept of Ethels Chocolate Boutiques and the products sold in the boutiques, it would be an example of

an internal information search.

nonmarketing-controlled information.

marketing-controlled information.

a prepurchase shopping tool.

an evoked set.

5. Katie is a college student in South Bend, Indiana. After classes, she decides to grab a snack before going back to her apartment. Before leaving campus, she can go to the cafeteria or a pretzel stand. Along her walk home are an Ethels and a Panera. Katie really wants a sandwich and a hot drink, so in all likelihood, her evoked set ________ contain ________.

will; the pretzel stand

will not; the cafeteria

will; Ethels

will; Panera

will not; Panera