Mars opens chocolate-themed hotel

Pop-up venue is the latest viral marketing campaign tailored to local tastes

Global confectionery firm Mars Inc has launched a new pop-up, chocolate-themed store in Shanghai, as part of a campaign to attract young trend-following consumers.

Dubbed the Dove Hotel, after the firm's most popular chocolate brand in China by market value, the store consists of four concept rooms featuring various chocolate flavors.

The firm says it has been designed around Dove's slogan of Pleasure makes you extraordinary, and features the chance for guests to craft DIY chocolate products, and taste desserts prepared by a Michelin-level chef.

Dove Hotel follows the similar Dove Choc Bar concept, which popped-up last September in Beijing's busy Sanlitun district. Over three weeks, the bar welcomed 30,000 visitors and reached 152 million people through social media.

According to the company, the marketing campaign is part of a push for young customers.

"Everything we are doing on this is to create the buzz that is in connection with the brand," said Thomas Delabriere, vice-president of Mars Wrigley Confectionery China. "We want to convey their own attitude and encourage young people to pursue their own pleasure."

The firm has also used celebrity influencers, such as three members of Rocket Girls 101, an 11-member pop group from the Chinese reality show Produce 101, as a way to exploit the potent power of social media.

"China is a top priority for Mars globally," Delabriere said. "Mars is committed in investing in China for the longer term and the investment will keep on good momentum.

"Mars will develop innovations among existing brands, creating in China, and for China."

According to Nielsen, Mars leads the chocolate market in China, with a 49 percent share in 2017 in terms of offline value, followed by Ferrero Group at 25.5 percent. In the year to July, Mars chocolate sales grew 3.7 percent year-on-year, while digital commerce saw 30.6 percent growth, according to AC Nielsen.

Delabriere said one of the firm's priorities in China is to go more premium, as Chinese consumers are becoming increasingly demanding and sophisticated. Dove says it will launch premium Valentines' Day gift packages, many of which can be personalized online.

Another focus for the firm is to incorporate local tastes. Following matcha green tea, strawberry and yogurt flavors, this year Dove produced durian and red velvet cake flavor products.

Delabriere said each new product undergoes about six to 12 months of research and development before it comes to the market. This includes traditional consumer surveys, analyzing big data, to better understand consumer tastes and innovate faster.

"It offers us more flexibility and enables us to respond quickly," he said.

Mars is also looking to improve its digitalization in China, and has worked with major digital giants including Alibaba Group Holding Ltd and Tencent Holdings Ltd. Online distribution channels have also offered them ways to provide personalized gift experiences at special occasions to attract younger consumers who shop online, Delabriere said.