Hybrid Strategy
As for Vosges chocolates sold in other retail stores, the demographics and lifestyle of the store’s patrons are key factors in the movement and sales of the product. Given the broad range of its product line and the holes in the chocolate market, Vosges can use a hybrid strategy and “pick off” the very high-end “niche” space with its truffles and $300 Bamboo Boxes by continuing to sell in retailers like Bergdorf Goodman. But their most substantial opportunities lie in the huge marketspace gap between Godiva and drug store chocolates. This mid-range affordable luxury area is already evidenced by the success of their top-selling $7.50 milk chocolate bar infused with Applewood-Smoked Bacon. Vosges needs to continue to develop similar types of products to capture the affordable luxury mid-range chocolate, and partner with appropriate channels like Whole Foods. This will dramatically raise the brand awareness, and more importantly, make the brand more accessible to a large variety of consumers. This is where Vosges’ greatest growth opportunity lies, and less so than with ultra high-end products.

Be A Wider Ranging Affordable Luxury
Katrina Markoff’s goal for Vosges Haut-Chocolat to be an affordable luxury like Marc Jacob’s apparel brand is appropriate, smart, and obtainable. Wisely, she initially based her product line on out-flanking high-end chocolates like Godiva. This strategy raises awareness in this marketspace, but not with mainstream consumers. To become a more widely-known brand and to grow substantially beyond its $12 million in revenue for 2007, Vosges should develop a wider ranging product line for the gap between high-end chocolates and drug store chocolates. This will not dilute its brand, but enhance its equity and reach. Vosges should leverage the wide reach of appropriate retailers like Whole Foods to dramatically increase volume, sales, and profitability. There are very few players with high brand awareness in this space now – can you even name one? And, are they national? Vosges can own two spaces simultaneously, and use both to enhance and leverage the other. By pursuing this hybrid strategy, Vosges would become even more well-known than Marc Jacob’s in clothing – and possibly develop a loyal customer base like Starbucks. This space owning strategy is an excellent fit for Vosges to build its niche and broaden its appeal. And for a chocolatier – how sweet it is!