Lily O’Brien’s: Thinking Inside the Box

Three strategic developments were under consideration by the company. The first one contemplated the relaunch of chocolate bags for impulse purchases, a decision that would position the company in a large and growing category competing for shelf space with major brands like Mars, Cadbury and Nestle. An alternative option was to strengthen the company’s standing in the boxed chocolate market, its traditional field, where its premium position offered higher potential growth at higher margins and where market share was still only around 5%. A third option represented a more radical brand diversification by offering retail channels a line of chilled desserts that were sold successfully to several airlines and food service partners.