Patchi: A Global Chocolate Brand of Love & Celebration - Research Paper

Paper Type:  Research paper
Pages:  7
Wordcount:  1849 Words
Date:  2023-03-07


Patchi is a company that has its origin from the Middle East in Lebanon. Since its inception, Patchi has managed to expand to about five continents and is performing exemplary well in chocolate production. Patchi has managed to create a unique name and image after its origination in 1974 and has succeeded in establishing 130 branches worldwide ("Landing Page", 2019). Patchi is, therefore, a brand name that has developed its goodwill by associating love and celebrations to the unique idea of chocolate. This has helped in building the brand hence making people have a stronger attachment to the company's products. The association of chocolate to love and celebrations has created some space in the hearts of individuals hence making Patchi attract brand loyalty (Greenley, 2016). This has enabled Patchi to stand out as a producer of the best chocolate in the world. The idea of love and celebrations has not only resulted in the increased consumption of chocolate but also the creation of emotional attachments as well. This has, therefore, made Patchi not only to deal with chocolate but also in gifts that span across different occasions such as graduations, birthdays, weddings, newborn babies, and some other special events. Patchi outlets have the best hand-manufactured chocolate that has been made is a special way to bring forth a distinct sensation. This has, therefore, made the market segmentation for Pathi to be unique as compared to the segments of other regular chocolate (Greenley, 2016). Most people in the world consume chocolate merely because of the taste associated with it. But Patchi has emerged to be distinct in the chocolate market as it is associated with happiness, celebrations, presents, and love. It is worth noting that there are numerous produces of chocolate in the world, such as Cadbury and Nestle, that give a stronger competition to Patchi. The focus of this paper is, therefore, to investigate the marketing strategies adopted by the Patchi company.

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Product Life Cycle

Patchi chocolate, just like any other product, undergoes through the life cycle. Often the product life cycle consists of four distinct phases, namely introduction, growth, maturity, and decline (Grebitus & Bruhn, 2011). Research reveals that of all the four phases of the life cycle, Patchi chocolate has passed through an introduction and is currently at the growth stage.


At this stage, the idea of Patchi chocolate product was first developed, a market identified, and determination on how to manufacture the product was undertaken. The product's prototype was first created, tested, and pilot production was run as well as designing the packaging (Grebitus & Bruhn, 2011). Afterward, the company decided on how the product would be promoted to the target customers.


The introduction stage of Patchi's product was successful. This made it move to the second stage of the life cycle, the growth stage. This is the phase where most of the profits realized from sales of Patchi chocolate was seen. At this stage, the production quantity if the chocolate increased with low unit cost hence boosting the return (Grebitus & Bruhn, 2011). Furthermore, the marketing of Patchi chocolate became very crucial. Rather than just advertising to then initial target audience, the company focused on masses and development of loyalty to the brand. The company ensured that they won the customer loyalty, hence made it reap increasing profits at this stage. The graph below shows the product life cycle, and it clearly shows that at the growth stage, the company products are gradually registering an increase in sales with time as it continues to penetrate the market.

Figure SEQ Figure \* ARABIC 1:Product life cycle curve

SWOT Analysis for Patchi Company

The research conducted a SWOT analysis of the Patchi company to determine its future potential. This was done by finding out what the company does good in and what it needs to improve on both internally and externally. The main aim of the analysis was to enable the company to identify and plan for changes that may have negative impacts on its future operations.


Patchi Chocolate Matches Current Trends. The majority of common trends in the food industry began several years back and are continually increasing due to the rising demand for food. Most consumers are constantly looking for labels such as dairy-free, soy-free, and gluten-free (Grebitus & Bruhn, 2011). This means that the larger the number of labels, the more the numbers of potential buyers. Patchi chocolate has managed to meet this trend; it is manufactured in such a way that it is gluten-free, dairy-free, and soy-free. While competing companies are struggling with meeting the current trends, Patchi chocolate is already there.

Many Professionals Sustain the Industry. There are a large number of companies and individuals that help I sustaining Patchi's products in various ways. Some of them engage in the arrangements of conferences, testing, and educational events to help in spreading the culture of Patchi's products, chocolate (Greenley, 2016). Shows and festivals are organized all over the world to give the consumers the opportunity of tasting and hence introducing them to new chocolate products. Furthermore, there is a lot of researches that is conducted by professors on chocolate. This helps in informing the company of various improvements that are needed to adjust on hence making its products to satisfy its customers fully (Greenley, 2016). Moreover, online personalities and bloggers play a crucial role in spreading the research findings of chocolate. The company can there count on a large number of professionals who are dedicated to ensuring its success.

Consumers Are Passionate About Quality. There are a large number of foods that are considered of no nutrition at all. Some of such foods have not clear origin as well as ingredients used . These, therefore, bring forth the aspect of uncertainty on the quality of foods hence making consumers to move the opposite direction. Moreover, the emergence of diseases associated with poor quality foods has made consumers changes focus and look for high-quality foods. They, therefore, look into ingredients, manufacturers, and the traceable supply chain before they can commit to buying the foods (Grebitus & Bruhn, 2011). Patchi products stand a better position in meeting this demand. The flavorful chocolate, health benefits, luxury package, and good events associated with it convince consumers beyond any reasonable doubts.


Growing Competition. There are limited barriers to becoming a chocolate maker. Any person can buy some bags of cocoa beans and a conching machine and start manufacturing and selling chocolate. This has enabled many individuals to begin a career in chocolate and hence create a variety of alternatives in the market (Grebitus & Bruhn, 2011). Any person is, therefore, able to be a chocolate maker without going through the required steps. This thus creates completion in the market hence having the effect of lowering the selling price of chocolate and, consequently, the profit margin.

Insufficient Marketing Skills. Most chocolate distributor such are the retailers rely on outdated tools for promotion. They don't make use of social media to market the product. They rather sale to individuals who would like to buy their products as opposed to being selective considering their long-term goals as a brand (Greenley, 2016). In times when there are stiff competitions, even the retailer should be trying to promote their goods consistently both online and offline. Regrettably, retailers and wholesalers are letting the company behind.

Minimal Profit Margins. Chocolate making is expensive right from the beans. The cost of buying chocolate-making machines, the distribution costs, the cost of distribution, advertising, packaging, and payments of manufacturing experts is very high (Greenley, 2016). This makes the chocolate company remain with minimal profit. Since Patchi associates its chocolate products with love, celebration, and presents, it finds itself on many occasions giving out its products for free to customers hence making it realize minimal profits. The minimal profit margins that is realized for the sales of Patchi product is one of the weaknesses that can be associated with it.


Social Media. With the increasing impact of social media in the marketing field, Patchi Company may also make use of the opportunity to ensure that it leverages on the sales of its products locally and internationally (Greenley, 2016). If the company maintains a consistent online presence, it will boost its sales as well as the image. The company can start encroaching onto social media by taking smart photos of its products as well as its logo. It can also post more about its products and itself. This would help it to reach millions of people on social medial within the shortest time possible. This can have an overall effect on boosting customer satisfaction.

Mobile technology. The advancements of technology have resulted in the production of sophisticated phones. This has made it possible for individuals to shop and secure payments via phones. The company should take this opportunity to incorporate the usage of mobile up to enable interactions between its customers and the products (Greenley, 2016). For example, the company should come up with an e-commerce mobile-based app that helps its customers to get more information about its products as well as ordering and making payments remotely through mobile applications. This would make the company to have a stronger competitive advantage as well as increasing the profit and revenue for the brand.


Rising competition. Patchi Company has faced a lot of completion from the beverage industry as well as from first food brands that have no exclusive focus on beverages. Some of its competition are Cadbury and Nestle. The rivals are as well established in the beverage industry hence making it difficult for Patchi to enjoy any monopoly (Greenley, 2016). Moreover, due to the fact that making chocolate has no such barriers, many people have entered the chocolate-making industry. This has resulted in a variety of chocolate alternatives in the market. Such alternatives may result in lowering prices hence making the increase in its marketing expenditures.

Legal Constraints. Since food consumption may have severe consequences on human health, some various rules and regulations have to follow in the manufacturing the foods. This may consist of the standards and ethics that a company must follow to ensure that its end products safe for human consumption. Companies are, therefore, obliged to following such standards and rules. Compliance with such standards may be expensive in the long ran hence making the company experience an increased cost of production (Grebitus & Bruhn, 2011). Moreover, governments may come up with a regulation that is thorough and rigorous. The company may find it challenging to adhere to such rules hence lading it into fines and consequently assassinating its reputation.

Pricing Strategy

Penetration Pricing

Patchi employs a penetration pricing strategy for its products. It made use of this strategy at the introduction stage of its product life cycle (Grebitus & Bruhn, 2011). This is where it introduced the products into the market at relatively lower prices, then once it had commanded a significant portion of the market, it gradually increased the prices. The strategy has been beneficial to the company in luring and hence winning customer loyalty. Apart from offering products to customers at relatively lower prices, the company also provided offers and discounts to its customers intending to attract more customers....

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Patchi: A Global Chocolate Brand of Love & Celebration - Research Paper. (2023, Mar 07). Retrieved from

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