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1.1 INTRODUCTION
Established markets generate intense competition during which new and innovative marketing strategies are required and new and existing products are developed. As a market develops, consumers become more experienced and discerning and look for more benefits from the products they choose. Although some organisations' products may appear unchanged at this developed stage of a market, the more successful businesses re-work existing brands and continue to develop new ones to meet changing consumer needs. The development of strong brands has always been a feature of the confectionery market.
marketing of a wide range of beverage and confectionery brands sold to consumers of all ages. Cadbury Schweppes employs over 40,000 people worldwide. The Group's strategy is to increase profitability, brand strength and volume on a global basis in its two business streams, beverages and confectionery, through a combination of internal growth, targeted acquisitions and joint ventures. In the beverages business, Cadbury Schweppes is currently No 3 in global soft drinks, where it licenses its brands to bottling partners in 92 countries and has its own or joint venture bottling operations in a further 14 countries. In the confectionery business, Cadbury Schweppes is the world's fourth largest supplier of chocolate and sugar confectionery. The Group has manufacturing plants in 25 countries and sales in a further 165. Cadbury Limited is Cadbury Schweppes' UK confectionery operation and it is responsible for the production of all of Cadbury's best-known UK brands.
Confectionery 4.9bn (chocolate sector 3.4bn) Biscuits 1.7bn Snacks 1.2bn Crisps 1.1bn Ice Cream 0.8bn.
Snacking is said to reflect the fast pace and busy lifestyle of many people in the 1990s. It is fast, convenient, easy and mess-free. The key snack consumers, 16-34 year olds, represent 37 per cent of all snack buyers.
to have more 'foody' values and often contain ingredients such as cereal, wafer, biscuits, peanuts and fruit to break up the chocolate delivery. Cadbury's philosophy is to continue as a driving force in the confectionery market, and thus constantly analyse its offerings for consumers. The core objective of Cadbury's innovation programme is to generate incremental volume for the company and achieve the vision of market leadership in every segment in which it operates. The role of innovation is critical as it allows Cadbury to develop ahead of its competitors in those areas of the market which are new or growing.
to grow the market for chocolate confectionery to increase Cadbury's share of the snacking sector.
The 'Fuse' concept was developed after market research identified the growth of snacking and a definite gap in the market for a more chocolatey snack. A number of ingredients were devised and tested following a survey which questioned consumers about their snacking habits and preferences. A research and development team was then asked to develop a number of product recipes which addressed the needs expressed by consumers. Not all products successfully emerge from the product development phase. Research and development involves combining various ingredients to develop potential new products. Considerable development time was spent on Fuse, carefully engineering the ingredients in order to deliver the right balance of chocolate, food elements and texture. More than 250 ingredients were tried and tested in various combinations before the recipe was finalised. Any new product in the snacking sector must establish points of difference from existing products within the market - thus creating a unique selling proposition (USP) i.e. a product with unique appeal which is not shared by any of its competitors. Whereas other confectionery snacking products ingredients, with chocolate used only to coat developers decided to use Cadbury's chocolate number of popular snacking ingredients such as cereal and fudge pieces. focus primarily upon the bar, the product to 'Fuse' together a raisins, peanuts, crisp
figures to allow Cadbury to anticipate the volume of bars required for the launch of Fuse and post-launch.
To communicate the dynamic and slightly wacky 'personality' of the new product and create interest at point-of-purchase (i.e. in store). To bring the brand name to life by communicating the fusion of Cadbury's chocolate with the snacking ingredients.
Pack Design Packaging enables a manufacturer to convey both the tangible and intangible attributes of a product. The packaging for Cadbury's new product sought to position it as a unique, exciting and delicious chocolate snack which would stand out from its competitors. It was important to emphasise the qualities and appeal of Fuse whilst at the same time reinforcing that it was a Cadbury brand. The packaging achieved impact by using bright, fiery colours for the product name and contrasting them against the deep and instantly recognisable 'Cadbury purple' which communicated the manufacturer's heritage. The colours were also used in a gun powder style to suggest an explosive taste. The vibrancy of the design aimed to differentiate it from other products in the sector so that it would have an immediate point-ofsale impact both on-shelf and in store display units. Three different packaging formats were developed in order to maximise the various multi-purchase opportunities available. The key pack size was the single bar, designed to entice trial and to encourage repeat purchase. The 'treat size' and the multi-packs were aimed at families. Brand name Like packaging, brand names play a critical role in the success of a product, by helping to create a product's 'personality'. The new product aimed to have broad appeal to 16-34 year olds, although it was primarily targeted at 16-24 year olds. The name Fuse was chosen to communicate the fusion of snacking ingredients. The logo was bright and fiery with a mock fuse - alight in
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several places - which aimed to give the new bar the quirky and humorous style which Cadbury sought to appeal to this younger target market.
Secrecy had to be paramount! Marketers who had identified the gap in the market had to work closely with individuals from research and development as well as other external agencies.
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Manufacturing operations, in conjunction with marketing and finance, had to evaluate a new factory investment for Board approval.
Having a catchy 'look' for a new launch helps to make consumers notice the product. Cadbury and its trade customers managed the first availability of Fuse around one day, Tuesday 24th September, aptly christened 'Fuseday'. This involved tight management of stock distribution, with more than 40 million bars being moved from Cadbury depots into the trade only a few days prior to the launch date. Press releases were tailored to specific audiences. In each case, a strict embargo was imposed to ensure that the impact of Fuseday was not diluted. The only exceptions were briefings with The Grocer, and Marketing (trade publications) and The Daily Telegraph, which reviewed the product in its business pages. Public relations (PR) support was substantial. It told the story of Fuse, explained that it had taken five years to develop, involved an investment of 10 million, the development of a new plant at Somerdale near Bristol and 4 million in advertising costs. The TV campaign and PR campaign were so successful that Cadbury was under pressure to meet repeat orders post-launch!
It had also contributed significantly to Cadbury's growth in 1996. The launch had exceeded expectations, with consumers buying 70 million Fuse bars within the first three months of its launch. Cadbury's competitors reacted to the success of Fuse by increasing their own new product activity.
1.12 CONCLUSION
This case study has examined Cadbury's ability to use innovation in a developed and crowded market-place. There were three clear elements in this process:
the use of consumer research to identify a significant market opportunity product research consumer testing and development combined with extensive
Snacking remains the big opportunity to expand the chocolate market even further. As Fuse moves through the growth phases of its product lifecycle, the next stage is to move it into the 'super brand' league. As it does so, the key requirement will be to maintain the product's momentum by continuing to develop innovative approaches to marketing it to consumers.
2. BIBLIOGAPHY WEB:
http://businesscasestudies.co.uk/cadbury-schweppes/launching-a-
new-product-into-a-developed-market/conclusion.htm ON 17 10 -2012)
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ARTICLE
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Understanding and Managing International Product Launch: A Comparison between Developed and Emerging Markets by Yikuan Lee, Bou-Wen Lin, Yim-Yu Wong, Roger J. Calantone published online: 13 OCT 2011 The Product Managers Desk Reference; Steven Haines; 2008 Digital Strategies for Powerful Corporate Communications; Courtney Barnes, et al.; 2009 Launch: How to Quickly Propel Your Business Above the Competition; Michael Stelzner; 2011
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