Revealing opportunities to strengthen & diversify portfolio Chocolate biscuits Background For Cadbury‟s Biscuits, there was a need to understand their category in more detail and evaluate ways forward for growth. Specifically, the business objectives were to: Understand why recent product launches and range extensions had not been successful Establish a clear picture of the structure of the market Investigate how best to promote their key brands Determine ways to increase their share of the market This was translated into research objectives of: Describe current purchase behaviour Ascertain competitive brands to Cadbury portfolio Identify key strengths and weaknesses of their brands and how best to exploit Quantify and profile consumer segments to target Model opportunities to increase share in the market Chocolate Biscuits Case Study 1 Project and sample Utilised TNS OptimaTM approach, with a 25-minute quantitative questionnaire Interviewed 1000 main grocery buyers in the UK, who had bought and eaten chocolate biscuits in the past month Questionnaire covered: Market behaviour/purchase Ranking of brands purchased Reasons for choice Attitudes to the category and personal values Chocolate Biscuits Case Study 2 Segmenting consumers on attitudes revealed… A broad attitudinal split between “Indulgers” and Limiters” BUT Cadbury brands only reaching 50% of chocolate biscuits consumers Chocolate Biscuit Eaters Indulgers Limiters Experimentalists Biscuit Barrels Chocoholics Chocolate Avoiders Controllers Naturals 27% 12% 12% 23% 13% 13% Buy Cadbury brands Chocolate Biscuits Case Study 3 Looking at purchase behaviour revealed… Many of the Cadbury‟s brands are competing with each other - both a strength and a weakness Cadbury’s Brands Shorties Digestives Choc chip cookies Wafers Midler Orange Creams NO OVERLAP HIGH OVERLAP Chocolate Biscuits Case Study 4 So knowing about consumer attitudes and their behaviour has revealed… The majority of consumers tend to buy brands from within the same sector Competition between Cadbury brands is high which is a strength but also a weakness since Cadbury brands lack presence in the rest of market Chocolate Biscuits Case Study 5 How are the brands positioned? Tasty/ eat anytime E.CLASSIC CREAMS O/LABEL COOKIES Hot drink CHOC HOB NOBS C.CHOC CHIP COOKIES C.WAFERS Convenient PENGUIN/ KIT KAT Out of home C.SNACKS (BAG) Treat/ “best” C.SNACK (BARS) C.CHOC FINGERS C.ANIMALS Chocolate Children Chocolate Biscuits Case Study 6 This led to the recognition of “Fortress Cadbury's” O/LABEL COOKIES E.CLASSIC CREAMS “Fortress Cadbury‟s” was viewed as a strength – and hence to be defended But also a weakness in terms of lack of presence in other (bigger) sectors of the market … and raised the question of how to best to attack CHOC HOB NOBS C.CHOC CHIP COOKIES C.WAFERS PENGUIN/ KIT KAT C.SNACKS (BAG) C.SNACK (BARS) C.CHOC FINGERS C.ANIMALS Chocolate Biscuits Case Study 7 And now knowing about consumer attitudes, their behaviour and Cadbury brands positioning… Cadbury brands core values are: Best chocolate Expensive but worth it Name I trust Special occasions/visitors Gift/attractive pack Like myself/children like BUT: There is little differentiation between Cadbury‟s brands Limited representation of the total chocolate biscuit market Immediate next steps: Identify the key strengths to communicate for its leading brand - Cadbury Fingers Create a plan to develop other parts of the market for Cadburys – re-positioning or new brand? Chocolate Biscuits Case Study 8 For Cadbury Fingers… Communication focus needs to be on chocolate, treat/fun, children. Reasons for Choice Rank in market Rank for Cadbury Fingers Like the chocolate 2 1 Nice treat 6 4 Children like them 12 2 Special occasions 19 7 Cheers you up 22 13 Expensive but worth it 23 21 Make I trust 24 15 Best Chocolate 30 14 What did they do? Developed new packaging and advertising based on fun, family and children Highest awareness levels post advertising Sales +15% in period post advertising Chocolate Biscuits Case Study 9 Further opportunities to increase share … Four key brand opportunities identified: Simulation indicated Sector 4 offered largest volume potential Development of Sector 2 indicated little cannibalisation from existing brands Sector 4 OL Cookies Fox’s Creams Choc Hob Nob Cookies C. Assortment Sector 1 Sector 2 Penguin Kit Kat C. Wafers C. Snacks Cadbury Fingers C. Animals Sector 3 Chocolate Biscuits Case Study 10 Decisions taken following the research Acquired brand and production facility to compete in the „Cookies‟ Sector (Sector 4 opportunity): And subsequently developed new products Acquired production facility to supply Own Label products to compete with Penguin, Kit Kat (Sector 2 opportunity) Identified clear positioning for key brand Cadbury Fingers in the UK “Optima™ was able to show us the true nature of the market and explain why new product launches had been cannibalising our existing range. The analysis then identified opportunities for new products and acquisitions which have now been exploited successfully, which helped us grow from an £85m company turnover to £250m ”. Tony Camp, International Marketing Director, Cadbury Biscuits Chocolate Biscuits Case Study 11