Business 2000
THE PRODUCT
LAUNCH OF DREAM
SIXTH
The Consumer Decision
Making Process
Interest
The Importance of Strong
Confectionery Brands.
Strong brands are very important in the chocolate confectionery
market. Almost 80% of chocolate purchases are made on impulse.
Buyers generally decide quickly which confectionery product to buy
with almost half of purchase decisions made within 10 seconds of
arriving at the confectionery fixture in the store.
The importance of developing strong confectionery brands is
therefore clear, with consumers using brands and packaging to
recognise products quickly and reduce perceived risks when
purchasing a newly launched brand.
Chocolate confectioners recognise the importance of this and spend
more on advertising than any other food category.The result of all this
advertising and marketing activity is that the chocolate confectionery
category is full of strong brands.
Alternatives
Market estimates value the total Irish chocolate market at about
375 million of which the white chocolate market segment is currently
valued at 12 million, almost 3% of the total chocolate market. This
clearly represented an area for future growth.
With proven levels of confectionery consumption, and growth
opportunity in white chocolate, Cadbury’s identified a gap in the Irish
market for a new white chocolate brand. Previously, white chocolate was
targeted only at the kids market. The success of the previous launch in
2000 of Cadburys Snowflake, a white chocolate bar covered in milk
chocolate would set the scene for a successful introduction of a
mainstream white chocolate brand. Cadbury saw a further opportunity to
create an extremely strong brand, the Cadbury Dream bar, an adult
market thus capitalising on the growing appeal for white chocolate and
develop a new product category.
Focus of
Cadbury
Marketing
to attract
Impulse
purchasing
Having universal appeal, Irish consumers purchase and eat
confectionery on a regular basis. Chocolate confectionery is very much
a part of everyday life in Ireland. We have the third highest per capita
consumption of chocolate in the world at approximately 10 kg of
chocolate per annum and spend over 100 per person.
Selection
Recipe and Texture
Purchase
Post-Purchase
Female Market for White Chocolate
Market research also shows that women purchase almost two-thirds of
all confectionery but eat just over half of what they buy themselves, as
they are the gatekeepers when making purchasing decisions for the rest
of the family. By targeting the gatekeeper with a new product the chances
of a successful launch is increased.
Gatekeeper
Irish Confectionery
Consumption Trends
Purchase
Consumer
Disposal
Purchaser
Within the female market, research shows an increasing preference
for white chocolate. The white chocolate market is considered to offer
significant potential for growth especially within the impulse segment.
In Ireland, the size of the white chocolate market
has increased significantly. Increased impulse
buying, driven by consumption by children,
and innovation in the market has seen its
size increase by 50% since Cadbury’s
launched Snowflake onto the market
place in 2000. Up to 2000 the white
chocolate market was primarily a kids
markets. Innovation has further grown
this market with the launch of the adult
chocolate such as Snowflake.The launch of
Cadbury’s Dream is expected to further
develop this segment of the Irish market.
Business 2000
sixth
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Linking Development and
Market Research
The technical development of Cadbury’s Dream took
place over four years and involved extensive use of
consumer feedback. For a chocolate bar market
research in the form of consumer testing will
impact on the product’s recipe, texture,
shape, format, size and packaging. It is
important to get all these elements
correct when launching a product.
Awareness
A WHITE OPPORUNITY - ADULT WHITE CHOCOLATE
edition
Market research carried out among
chocolate consumers found that
consumers associated a unique intimacy
with white chocolate. Popularity of the
product in market testing was attributed to
several key features including flavour, sweetness, a
creamy aftertaste and a melt-in-your-mouth texture.
These identified features would later be incorporated into
the product’s brand image and advertising.
Selecting a Brand Name
The name for the new product was chosen following extensive market
research in New Zealand. This included consumer focus groups where
groups of consumers were brought together to provide feedback on a
range of potential names for the new bar. Research found that the name
‘Dream’ represented the characteristics that Cadbury’s wanted to reflect
in the brand’s personality so that it would appeal to the target market –
women in the 25 years to 34 years category.
A product’s brand personality is a description of its characteristics in
relation to the target market for the product. It assists marketers to
develop suitable advertising and promotional campaigns for the product.
In the case of Cadbury’s Dream the key elements of its brand
personality were designed so that they would appeal to female
consumers seeking style, confidence, sophistication and selfassuredness in their lifestyles. Their research also found that it would
make the product stand out.
Female
Stylish
Self Assured
Confident
Cadbury’s
Dream
Sophisticated
Brand Personality
Figure: Cadbury’s Dream Brand Personality
Shape, Format & Size
Consumers also had preferences for squared block chocolate formats as
they are convenient bite sizes. This shape has proven to deliver a good
taste experience.
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Packaging
The packaging for Cadbury’s Dream was also determined by consumer
research and influenced by the Cadbury’s Dream brand personality. It was
designed to fit with the product’s image of being soft and indulgent and
had a particular appeal among the female target market. Indeed the
selected colours on the packaging of a combination of blue and white
were used for their attractiveness, as reflecting indulgence to the female
purchaser.
Research found that the final packaging showed the new product to be a
modern and quality chocolate bar that was different enough to catch the
consumer’s eye on a shelf. The variety of the products offered for the
launch phase were the standard 45 gramme bar, shell egg, impulse egg, 100
gramme and 200 gramme bars. As well as the standard offering seasonal
offerings e.g. Easter were also planned.
Ensuring Consistency
with the Umbrella Brand
For Cadbury’s it is important that its traditional image is retained, as there
are benefits for the new products to be associated with Cadbury’s and
built upon the brand values that have been developed over 70 years
(Cadbury’s brand has been in existence since 1824). Research shows that
colour recognition of purple is strongly associated with Cadbury’s and that
the Cadbury’s logo having the highest recognition of any logo among
popular consumer brands. This is part of a ‘Choose Cadbury’s’ marketing
strategy using the established ‘glass and a half ’ corporate purple and
flowing script that has become synonymous with Cadbury.
Launching Dream in
Ireland
Cadbury’s Dream was launched to the Irish market in February 2002. It
represented the outcome of intensive process by Cadbury Ireland
marketing team, and the beginning of a period of intensive advertising and
promotional activities to ensure that the product would have an
immediate impact in the market place.
Because the product had been launched in other markets before Ireland,
Cadbury Ireland could learn from research carried out and marketing
experiences in these countries.
Market research results
This market research included a range of sessions
where consumers were invited to taste the new
product and provide feedback to the marketing
team on their views of the product. Feedback
described Dream as having a better chocolate
taste, creamy, not as sweet, better texture and
more natural taste than other white chocolate. In
general findings indicated to the new product
would be a success. Findings included:
◗
◗
◗
77% of females said they preferred
Cadbury’s Dream to a leading brand in the
white chocolate category.
56% of consumers said they would buy
Cadbury’s Dream as well as their current
purchase.
79% said Cadbury’s Dream packaging was
eye-catching and stood out from the rest.
The research also found that white chocolate
buyers were more likely to spend more on
chocolate and likely to buy blocks of chocolate
more frequently.
By getting an understanding of consumer
intentions and attitudes toward a product the
Cadbury’s marketing team could get a better
understanding of Irish consumer’s decisionmaking processes.This information would be used
by Cadbury to convert a consumer who has an
awareness of the brand to move down the steps
to actual purchase.
From the outset the primary marketing objective for the launch of
Cadbury’s Dream was to build high awareness quickly for the brand and
get visibility for the launch of the product. To launch Cadbury’s Dream in
Ireland Cadbur y’s provided heavy marketing suppor t, with both
above and below-the-line launch activity. Above-the-line marketing
includes outdoor or TV advertising
while below-the-line marketing
includes promotional and sampling
activities.
Advertising to
Reflect Brand
Personality
The advertising theme for the
Cadbury’s Dream product launch
was ‘All in a Cadbury’s Dream’.
The advertising strategy was
developed around the brand
personality of the product and
sought to appeal to female
chocolate consumers in particular,
their tastes and desired lifestyles.
This theme incorporated the
characteristics of indulgence and
luxury associated with the
product. TV advertising ran across
all the main channels. This was
supported by a widespread
outdoor campaign on billboards in
prominent places and at train
stations.
Trial and Sampling Programmes
Product trial and sampling programmes were run both before and after
the launch. An extensive sampling programme was used before and during
the launch to generate awareness and trial. Miniature bars were used to
drive trial and establish the taste of Dream with consumers. A nation-wide
on-street sampling campaign also took place using the ‘Cadbury’s Dream
Team’ promotional staff. Dream was offered as free samples with
Cadbury’s Drinking Chocolate and Cadbury’s Roses Top Box cartons, and
free samples were given away on the cover of VIP Magazine, a popular
magazine with a large Irish female audience.
GLOSSARY
Gatekeepers: These are buyers of products who control the
flow of information as well as making the purchasing decision.
Market segment: A part of the market which has its own
distinct customer profile and buyer characteristics such that, for
marketing purposes, it can be targeted separately from other
segments of the market.
Conclusion
For Cadbury, innovation remains one of the key elements to the
company’s success with new brands catering for changing tastes and
lifestyles. Identifying these changes in taste and lifestyle and matching these
with quality products with strong brand values will mean that new product
development will continue to be an integral part of the Cadbury’s business
strategy.
There will also be further development of the Cadbury’s Dream range.
Already this has seen Cadbury’s Dream varieties introduced into other
market segments including the gift and take home segments. Speaking at
the launch of the new bar, Michael Smith, Marketing Director, commented:
“Cadbury’s Dream is an exciting new edition to our white
chocolate portfolio and marks a further commitment by Cadbury’s
to this market.As leaders in the white chocolate market for adults,
we plan to drive further market growth through the introduction
of a complete cross category range.”
Take home confectionery is generally purchased in a supermarket
for later consumption in and out of the home. Here consumers
make more rational decisions and consider the price of the product,
the value they place in the brand, and quantity purchased.
tasks and activities
1.
Explain the benefits of consumer testing during the
product development process? For a chocolate bar what
aspects should be examined in during this testing?
2.
Define the following terms:
(a) Brand personality
(b) Above-the-line marketing
(c) Focus group
3.
What is a consumer decision making process? How do
you think marketers use this to ensure a product is
successful?
4.
Outline the objectives of a product launch marketing
strategy.
5.
Identify three branded chocolate products for each of the
following market segments – impulse, take home and gift.
6.
Explain the difference between the roles of gatekeeper,
purchaser and consumer in the decision making process.
The gift segment of the market contains products that are
purchased for everyday gift occasions such as Valentines Day,
birthdays and Christmas. The core drivers in making a purchasing
decision in this segment are "need a token of appreciation", "need a
romantic gesture" and "need to celebrate a special occasion".
Impulse purchases are typically products bought for immediate
consumption.The core drivers for this type of purchase are indulgent
and immediate consumer needs such as "need filling up", "need a light
snack", "feel like indulging" and "need some energy".
The impulse market accounts for 50% of total chocolate sales and 80%
of these sales are bought on an impulse basis in the UK and Ireland.
Research has found that growth in the impulse market is driven by
changes in lifestyles that are affecting the way we eat and an increase
in demand for convenience. Snacking has become a part of everyday
life and chocolate has become a unique impulse category because it is
eaten throughout the day rather than specifically at meal times. The
peak times for confectionery eating are late morning "elevenses", late
afternoon, after school and during the evening.
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While every effort has been made to ensure the accuracy of information contained in this case study, no liability shall attach to either The Irish Times Ltd. or Woodgrange Technologies Ltd. for any errors or omissions in this case study.
Business 2000
sixth
edition
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