IP Project 2014 - Jelly Belly Research Report. Contents Page. Page 2 – Jelly Belly History. Page 4 – Consumers. Page 5 – Secondary Market Research. Page 8 – Competitors. Page 9 – Questionnaire. Page 13 – Jelly Belly Focus Groups. Page 20 – SWOT Analysis. Page 23 – References. 1 IP Project 2014 - Jelly Belly Research Report. 1. Jelly Belly History: 1.1. About : (1) o A Family business created in 1869 o Jelly Belly was started by two brothers who emigrated to America from Germany o The name Jelly Belly was inspired by the rhyme with Leadbelly, a 1920s blues singer. o The company was born, and is still currently based in, Los Angeles o The first eight Jelly Belly flavours - Very Cherry, Lemon, Cream Soda, Tangerine, Green Apple, Root Beer, Grape and Liquorice are still some of the most popular flavours made to this day. o More exciting flavours like Chocolate Pudding and Buttered Popcorn were introduced soon after. o Revenue: $190 million in 2012 o Employees: 725 o The company is produces more than 37 million pounds (17,000 tons) of candy annually o There are currently 50 "official flavours" of Jelly Belly and taking account of the full range; there are actually 90 different flavours to choose from at any one time. o In 1967 Jelly Belly managed to catch the attention of the Governor of California, Ronald Reagan. Throughout his time in office, the Governor ate jelly beans and ultimately wrote that famous letter saying "we can hardly start a meeting or make a decision without passing around the jar of jelly beans." o Blueberry flavour was created specifically for Ronald Reagan’s presidential inauguration. And remains incredibly popular. o Jelly Belly were the first jelly bean in outer space. o Jelly Belly is now a global favourite snack. It is the world's number one gourmet jelly bean. o Easter is the most popular time of year to eat Jelly Belly – Christmas is the second most popular. o Jelly Belly also sells candles and air fresheners as part of its product line. 1.2. Trivia: (2) o The number of Jelly Belly beans eaten this year would circle the Earth 5.5 times. o There are 1,680 Jelly beans produced per second (that’s as long as a blue whale). 2 o There are 362,880 pounds of jelly beans produced per day (that’s as much as 24 elephants). o 14 billion Jelly Belly beans eaten this year. o There are 5 billion Jelly Belly beans sold at Easter. o Favourite flavours by region: o America: Very Cherry. o Asia: Lemon Lime. o Australia: Bubble Gum. o Europe: Tutti-Fruitti. o Middle East: Berry Blue. o It takes 7-21 days to make a jelly bean. o There are 74 other products in the Jelly Belly range – including other sweets and chocolate. o Jelly Belly are gluten free, peanut free, dairy free, fat free and vegetarian friendly. 1.3. Advertising: o Not widely advertised in Europe. o Print and television campaigns aired in America tend to show off the wide variety of available flavours. o Slogan of “Get real. Get Jelly Belly” – emphasis on the company’s use of natural ingredients. o The advertising is quite positive and ‘kooky’ helping to mirror the brand values. It appeals to families and children, with bright colours and fun fonts. o A large part of their advertising comes from their Jelly Belly artwork – where artists recreate portraits of famous paintings using only jelly beans. It is a craze enjoyed all over the world. 3 2. Consumers: 2.1. Profile: Jelly Belly's primary target audience is ABC1 adults aged 25+. However age isn't set in stone as much, but it’s more about lifestyle. Their target audience like the nicer things in life – they’d rather pay more for a better product than feel that they’re getting a bargain on an inferior product. They tend to buy brands, but they’re not brand victims – they just appreciate the best. They are opinion formers, they love social media, and they like being in the know and they love to travel and the challenge of trying new things. Life is for living, enjoying, tasting. They are well-off with good jobs and a comfortable life. Their ideal consumer is a woman who has an affluent lifestyle, they enjoy confectionery and whenever they pass into a store they specifically chose the product that they know is full of flavour and is best for them, they don't always buy brands and don't stick to one particular brand such as Cadburys they pick what they feel like and usually that will be sweet and a mixture. She is a social leader in her friend group and has a large influence on the groups actions. She is very fashionable and has a high disposable income, lives in the city and has natural coloured hair. She enjoys life as it comes and doesn't think too much about the future apart from sustainability within the environment, she isn't vegetarian but she cares for the environment and animals. She has friends all over the world as she likes to travel on holidays with her friends so she has various connections and talks a lot via social media rather than texting. She is glued to her phone and isn't able to leave the house without it. She has a very comfortable life and enjoys every opportunity. 2.2. ABC1: National Readership Survey (NRS) demographic categories Social Grade A Social Status upper middle class B middle class C1 lower middle class Occupation higher managerial, administrative or professional intermediate managerial, administrative or professional supervisory or clerical, junior managerial, administrative or professional From the National Readership Survey above, it's suggested that Jelly Belly are targeting lower and upper middle class in western social groups. Their occupations range from 4 higher managerial to administrative job roles that are very demanding. This means that would have less time to 'shop around' for what they were after and would know exactly what they needed and wanted even before entering the store. ABC1 consumers are likely to be ready to pay more for products compared to the people in the lower social grade. ABC1 consumers are suggested to have been strongly influencing when it comes to purchasing food for occasions such as social gatherings, as they are more likely to be the hosts. This trend is not just based on higher affluence but also on other factors such as a greater awareness of health issues and ethical concerns relating to food. When looking further into spending habits online shopping has been a very strong pushing force for increased spending on premium food products such as Jelly Belly in comparison to its rivals. This suggests that they are likely to buy brands that are seen as luxury rather than just a food brand. But recently trends show that because of the economic crisis, manufacturers and retailers would find it harder to charge a premium on top of the already inflated basic food prices as the ABC1 consumers would not really be willing to pay more. (3) {See Appendix 1} 3. Secondary Market Research: “Although chocolate confectionery accounts for more than two-thirds of the total confectionery market by value, sugar confectionery grew at a faster pace than the major sector for the second consecutive year. Gums and jellies, especially sour variants, are increasingly popular. Moreover, an influx in sharing formats and themed products have further boosted sales in the sector. Fruit sweets are the largest subsector in the sugar confectionery sector and experienced the highest growth of all subcategories in the total market.” 3.1. Confectionary Market Size (Total Market): (4) o Between 2008 and 2012, the confectionery market in the UK grew year-onyear. o Its value rose by 15.8% to £5.51bn. o However, the growth rate fluctuated over the time period. It accelerated in both 2010 and 2011, but slowed substantially in 2012. o Accelerated growth is primarily down to price inflation, although confectionery is undeniably popular in the UK. o In spite of rising production costs, falling disposable incomes and campaigns emphasising the importance of a healthy diet as part of a balanced lifestyle, the confectionery industry continues to increase in value. o This defiance is largely due to the fact that even under strained finances and dieting plans, consumers still enjoy treating themselves to both chocolate and sweets. Table 3.1. The Total UK Market for Confectionery by Value by Sector at Current Prices (£m at R.S.P) 2008-2012: 5 2008 2009 2010 2011 2012 Chocolate Confectionary Sugar Confectionary 3,461 3.554 3,732 4,001 4,065 1,293 1,278 1,297 1,407 1,440 TOTAL 4,754 4,832 5,029 5,408 5,505 % Change year-on-year - 1.6 4.1 7.5 1.8 R.S.P — retail selling prices (4) 3.2. UK Confectionary Market: o The subcategory includes some of Britain’s favourite confectionery, such as M&M’S, Snickers, Maltesers and Kit Kats. o The fruit sweets subsector is currently the fastest‑ growing segment in the confectionery industry. o Premium chocolates are also faring well as consumers spend time at home with loved ones and are sharing and gifting confectionery. o The market niche created by the demand for premium variants as consumers treat themselves to affordable luxuries. o Since the recession started, bitesize products in both single-serve and sharing formats have established themselves in the confectionery market and now account for 9.5% of confectionery sales, as reported on 25th May 2012. o Over the past year, novelties have also gained importance in the market. They add excitement by bringing a fun factor through shapes, not only during holidays, but also during sports and royal events, in addition to everyday life. o The rise in novelties reflects the focus of innovation in the confectionery industry in the UK. The market is mature and saturated with products. Brands are well‑ established and consumers tend to be loyal to them. o To maintain dynamism in the market, manufacturers are introducing new versions of existing confectionery, which consumers are eager to try. o In addition, over the past 12 months, there has been an influx in smaller formats. This is one of the most important trends in the confectionery market for multiple reasons. o Consumers are making packed lunches to save money and eating on-the-go due to their hectic lifestyles. (4) 3.3. Sugar and Chocolate Confectionary Data: o In 2012, the confectionery market grew by 1.8%. o On 15th December 2012, The Grocer reported that sugar confectionery volume sales fell by 1.3% in 2012, while volume growth for chocolate confectionery was relatively flat, rising by 1.4%. o In addition, according to another article by The Grocer that was published on 9th June 2012, there was an increase in promotional activity in the chocolate market, with the number of deals up from 6,152 to 7,191, meaning that the typical saving has raised from 26.9% to 29.1%. 6 o Confectionery manufacturers are operating in tough market conditions; still, the industry remains resilient. o In 2011 and 2012, the sugar confectionery sector grew at a faster pace than that of chocolate confectionery. o The mints subsector is the sole product category to have experienced a decline in value over the course of the year. (4) Figure 3.3. The Total UK Market for Confectionery by Value by Sector at Current Prices (£m at R.S.P) 2008-2012: This gives you an idea of the size and scale of the market in the UK. R.S.P — retail selling prices (4) 7 4. Jelly Belly Competitors 4.1. Competitors in Europe: o Top 5 European confectionary brands 1st Nestle. 2nd Ferrero Group. 3rd Perfetti Van Melle. 4th Haribo. 5th Lindt and Sprungli. 4.2. Nestle: o Multinational food and beverage company founded in 1866 in Switzerland. o Its products are baby food, bottled water, breakfast cereals, coffee, confectionery, dairy products, ice cream, pet foods, and snacks. o Largest Food Company in the world measured by revenues. o Known as the worlds leading nutrition, health and Wellness Company. (5) 4.3. Ferrero Group: o An Italian manufacturer of chocolate and other confectionery products such as Ferrero Rocher, Pocket Coffee, Mon Chéri, Giotto, Confetteria Raffaello coconut cream candy, Hanuta chocolate hazelnut-filled wafers, the Kinder line of products, as well as the Tic Tac breath mints. o Founded by confectioner Pietro Ferrero in 1946 in Italy. o In 2011 they introduced a line of frozen products called ‘Gran Soleil’. (6) 4.4. Perfetti Van Melle: o Italian global manufacturer of confectionery and gum founded in 2001. o The third largest confectionery manufacturer in the world after Mondelēz International (owners of Cadbury) and Mars, Incorporated (owners of Wrigley). o Distributes products in over 130 countries. (7) 4.5. Haribo: o German confectionery company, founded in 1920 by Johannes. o Created the first gummy candy in 1922. o Has over 37 different products in the UK. o 9 different products in U.S.A. (8) 4.6. Lindt and Sprungli: o Luxury Swiss chocolate and confectionery company founded in 1845. o Known for its ‘gold bunny’ during seasonal periods such as Christmas and Easter, 2 pink bunnies for valentines. o Main product is a type of chocolate produced by lindor, which is characterized by a hard chocolate shell and a smooth chocolate filling. o Sells a variety of ‘block chocolate’ that incorporates different flavours. (9) 8 4.7. UK’s Top 10 Product list: (10) o Starmix. o Tangtastics. o Super mix. o Chamallows. o Goldbears. o Jelly babies. o Strawbs. o Wine Gums. o Pontefract Cakes. o Sour Cherries. 4.8. America’s Top 10 Product list: (11) o Gold-Bears. o Happy Cola. o Twin cherries. o Peaches. o Sour S’ghetti. o Raspberries. o Smurfs. o Frogs. o Juicy Gold bears. o Rattle Snakes 5. Primary Research: 5.1 Questionnaire: o Question 1: How often do you buy branded confectionary? From this question it is clear that the bulk of our respondents purchase branded confectionary fairly regularly. This is great news for Jelly Belly as it means their potential consumers may purchase their brand on a frequent basis. o Question 2: What kind of confectionary do you buy? Question 2 poses a potential problem for Jelly Belly, as over half our 9 respondents prefer to spend their money on chocolate rather than sweets. This suggests that Jelly Belly’s advertising would need to address this problem. o Question 3: What is your favourite branded confectionary? This question suggests that Cadbury’s is potentially one of Jelly Belly’s biggest competitors out of the choices given. This is a threat as Cadbury’s is a massively popular and well-known brand. Despite this Jelly Belly is a big brand in its own right. o Question 4: Does the price ever effect your choice of confectionary? 61% of the respondent said that yes, price does influence their buying decision in terms of confectionary. Jelly Belly’s advertising will have to persuade consumers that their product is worth them parting with their money. o Question 5: If yes to question 4, why? In general, most respondents said prices effects their purchase habits as many of our respondents are students. The bulk of people suggested that they only buy confectionary when it’s on offer. Many respondents also said if there was an unbranded version of the same product, they would go for the cheaper on as 10 they believe, in terms of confectionary, that they taste similar. A common theme throughout the answers was that people don’t want to pay a lot for sweets, as they could be spending the money on more ‘useful’ items. In summary, it is suggested by most respondents that if it is a good deal they are likely to purchase. When looking at each respondent’s answers, it is apparent that the ages 55+ respondents aren’t bothered by price. o Question 6: Have you ever heard of Jelly Belly? 72% of respondents said that they have heard of Jelly Belly. This is good news as Jelly Belly can focus on selling the product through their advertising rather than focusing on brand awareness. o Question 7: Have you ever seen any Jelly Belly advertising? Almost every respondent has never seen any Jelly Belly advertising. This may be because it is an American Brand; as most of our respondents are British, and there is little JB advertising in the UK this could be the reason why the percentage is so high. These results do show however that Jelly Belly may need to do some advertising in more countries. o Question 8: If YES to question 7, where and what was it? Since 90% of respondents had never seen JB advertising, there are very few answers. People who have seen some advertising said they had seen it on TV, online and in sweet shops. 11 o Question 9: Do you see JB as a fashionable/luxury brand or just a food brand? o Surprisingly, over half of respondents said they see JB as just a food brand. This is a surprise as Jelly Belly is a fairly pricey confectionary choice. o Question 10: Would you rather see JB advertising via social media, traditional media or ambient media? These results are fairly close, however social media is the most popular choice. This is not surprising as social media has become so popular in recent years; almost everyone uses it. This is great for Jelly Belly as social media is with people all the time, e.g. via smartphones, therefore they can potentially advertise to consumers all the time. o Question 11: What is your gender? This question tells us that the bulk of our respondents are female. o Question 12: How old are you? From this we can see most of our respondents are aged between 19 - 24. Q 12 o Question 13: What is your nationality? This shows us that 84% of respondents are British. 5.2. Jelly Belly Focus Groups: Focus Group One Focus Group Leaders: Katherine Sellwood, Jasmine Barton & Sara Burton. Date: 19th February 2014. Time: 16:00. Group Notes: Seven people showed up and they were aged between 19 and 25. Logo Test The first topic was taking about logos and what logos they recognised, our research found that everyone recognised the Jelly Belly, Cadburys, Haribo, Rowntree’s and Mars 13 but aside from one didn't recognise the Naturals logo of confectionery. One person didn't recognise the Nestle logo. We then asked if they were to walk into a shop, which of these brands were they more likely to buy and why; they responded with Haribo and Cadbury because they knew that when they bought them, they knew how it would taste and they are more likely to enjoy them. When asking what the focus group thought about Jelly Belly, the predominant response was "Quality" they see that Jelly Belly is the top of the league for Jelly beans. However they often chose the other products as they were looking for “quantity” rather than “quality”; this could be due to them being students therefore they do not have as much spare money to use for treats like Jelly Belly. Jelly Belly Advertisement We then went on to ask what they thought of current and previous TV advertising campaigns and found that with the “Get real. Get Jelly Belly.” James said that he didn't like the feel of it, it was too short and that they couldn’t recognise what it was trying to reflect. It was also said they didn't like the American accent as it seemed condescending. The second TV ad we showed was “Share the love”, we received comments that it was great for kids with the use of colour and excitement, but personally they didn't like it and they felt it wasn't for them, the accent comment came up again and they liked it because there was more of a story instead of a plain message. The third was the “Snowman” advert; they found it boring and plain without any excitement but found it was the best of the three. The strap line didn't reflect what 14 was happening and therefore made it more confusing. Overall it didn't make them want to go out and buy the product as it felt more like a gift opportunity. Jelly Belly Print Campaigns We then asked them about their print campaigns; we found that with the first reflection of fruit print they thought it was clever, straight to the point and quirky. It wasn't too complicated. On the other hand, with the lollipop poster they found that it involved too much thinking for them to work out; some found this good and some found this too much (advertising students preferred it!) The watermelon print was seen as "cute" but James didn't understand it, to them it more looked like pizza so the art direction wasn't too successful. Although, with the older Easter style print we found that they preferred the clear nicer message of simplicity rather than complicated witty print. Taste Test Finally we went into the taste test; we gave them a choice between ASDA's own brand vs. Jelly Belly's jelly beans and we found that out of the group of 7, 4 people enjoyed the Jelly Belly the most because "it was crunchy, juicy, variety of flavours, brighter", "a lot more appealing to the eye, taste nicer and because they are more colourful", "brighter, more attractive, stronger, more pleasant taste" and "better flavour." Alongside with the three group leaders, we also enjoyed Jelly belly more because of the burst of flavour in comparison than ADSA, along with the larger variety of flavours with the option to purchase flavours individually. However James didn’t like a Yellow Jelly Belly bean, which he said “ruined tasting it for him”. But when he tried a few beans at the same time, he loved the taste of all of the vibrant flavours together and made a comment about having small "shot" doses of jelly belly to get all flavours together, combining them, and not individually. In terms of the ASDA’s own brand; with the 3 who favoured it - no body made the point of writing why – so we assume that they didn’t feel too strongly enough to make a comment. 15 Focus Group Two Focus Group Leaders: Eleanor Potter, Lauren Chamberlain, Suzie Lemos Date: 20th February 2014 Time: 09:00 Notes: 6 people showed up, who were aged 19 and 20 and 23 – 50 years. Logo Test: The first section was showing arrange of different brand logos to see what the focus group recognised. Jelly Belly, Cadbury’s, Haribo, Rowntree’s and Mars were recognised instantly; people had to think about Nestle before saying what it was but only 1 person identified The Natural Confectionary brand but others had seen the logo but couldn’t say what it was. After identifying the brands, we ask the focus group what would may them repeatedly buy these brands – the taste, texture, packaging, the name? One member of the focus group spoke about the different tastes between of vegetation Haribo and normal Haribo; the texture was rubbery and put them off Haribo after trying them. Cadbury’s was said to be a recognisable brand that they associated with purple, making it an identifiable brand to buy all the time. All members said the same about Mars. The Natural Confectionary brand was seen as a healthy sweet brand because of the ‘Natural’ in the title and the no artificial colourings stamp on it – making more people want to buy that particular brand. 16 Jelly Belly was associated with an ‘artificial look’ yet ‘quality confectionary’ which is less appetising; it was seen as ‘a treat rather than an everyday sweet’. 2/3 of the focus group said that they knew of the Jelly Belly brand but never see it in shops, other than ‘one-off’ American Candy shops. Said to be more of an American brand rather than British, as it isn’t seen as often over here. Members of the focus group said that they wouldn’t buy jellybeans if they had a varied choice of sweets. Jelly Belly TV Advertisements: Firstly, we asked if any of the focus group had seen or heard of anything TV advertising campaigns of Jelly Belly. No one had seen or heard of any recent or past Jelly Belly TV advertising, they referred to it as being an America brand. The first of the three TV advertisements, no one had ever seen but Louise Woodruff and Charlotte Keyworth both said that the American accent felt daunting because the American and British cultures are so different; making it seem very pressurising. The Jelly belly TV Advert was: “Get Real. Get Jelly Belly.” In the second advertisement “Share the Love” the strong American accent comment came up again, making it daunting but they felt that the message came across a lot clearer than the one before because it was more enjoyable to watch and understand what Jelly Belly is about. In the third, TV advert “Snowman”; they found it exciting because it was Christmas orientated and said that this would be appropriate for Jelly belly because they see it as a brand that you would give as a gift – not just buy for yourself. All members said that didn’t have the craving desire to go out and buy the brand straight away. Jelly Belly Print Advertisements: The print advertisements were favoured over the TV adverts because they were clearer to understand and they had a ‘straight to the point’ message appose to the over daunting American accent TV adverts. The first print advert “Get Real. Get Jelly Belly.” was said first glance to be boring but after looking at it for a few minutes they saw the mirrored fruit at the bottom of each Jelly Belly. All members said that this was an effect campaign but it took to long to see what the message was trying to say about Jelly Belly but still preferred it to the TV adverts. The watermelon advert “All that in a Belly.” was the favourite out of the print adverts as they said it was unusual but creative to how the message came across as the consumer. At first glance, 2 members thought that it was a pizza but quickly changed their minds because properly looking; this makes it an unsuccessful advert because the art direction didn’t capture what Jelly Belly wanted. The “Lollipop” and “Easter” advert were seen as boring, unsatisfying and confusing to understand because they didn’t make the members want to go and buy Jelly Belly like 17 an advertisement should. The “Lollipop” advert they didn’t understand at all. The “Easter” advert was seen as childish and un-promotional towards Easter. Taste Test: Finally we did the Taste test; we used Tesco’s own brand jelly beans vs. Jelly Belly’s jelly beans. When they took part in the taste test we made everyone close their eyes so the test was fair to both brands. We find out that 2 members favoured Jelly Belly over the Tesco’s own brand because they were “better tasting, the taste would last in your mouth longer and they could guess the fruity flavours”. Jelly Belly, was a more appealing product but they associated it with a “very artificial-looking product because of its shiny coating” but they said the “brighter colours, made them a lot more attracted to the product”. Louise Brewer favoured the Tesco’s own brand over the Jelly Belly because they were “more reasonable and nicer favours” she also preferred the texture of the product over the Jelly Belly’s were to “crunchy”. In terms of aesthetics, Tesco’s own brand didn’t have the same eye catching attention that the Jelly Belly jelly beans did but they said they would still buy the product because of the difference in the price range. Packaging: Jelly Belly’s jelly bean packaging was favoured over Tesco’s own brands because they like the idea that they can identify which jelly bean is what flavour and they referred to it as an “old-school way of buying sweets” making them think of their childhood and why they picked them. 18 Tesco’s own brand was seen as a “traditional packaging” but they could see why it stood out as the green was attractive to them as consumers but the idea of how you buy Jelly Belly and the way you picked them, appealing to them a lot more than just buying a plan old packet of jelly beans. Conclusion of Focus Groups: Overall, Jelly Belly seemed to be the better quality and tastier brand that the two focus groups preferred, compared to ASDA’s and Tesco’s own brand of jelly beans. We found that Jelly Belly’s advertising, both TV and print weren’t recognised and were found to daunting, especially with the strong American accent in TV. The print advertisements art direction didn’t come across clear enough to the group for them to want to go out and buy them as both group found it hard to understand and got confused. As for the taste testing, both groups agreed that Jelly Belly had the “better quality and taste” because they were “Juicy, longer lasting taste and bursting with flavour” but all said that they would rather have Jelly Belly as a gift than just a regular, everyday treat. 19 6. SWOT Analysis: STRENGTHS: o 6.1. “Taste Quality”: As seen in the feedback from our focus groups, Jelly Belly is recognised as a quality brand with being preferred by the majority and was described with words/phrases such as; “crunchy”, “juicy”, “more attractive”, “better flavour” and a “more pleasant taste”. o 6.2. Variety of Flavours: They have 50 official flavours giving the audience a wide variety to choose from, this allows Jelly Belly to appeal to a wide target audience with everyone having different preferences and tastes. They also vary this “official 50” by dropping and adding new flavours, some of these come from employees at Jelly Belly but they also take suggestions from consumers as well. However they also have a “feature flavours” which are 10 flavours that are always in the official 50 flavours. They include: Lemon lime. Cappuccino. Very Cherry. Orange Juice. Strawberry Jam. Sizzling Cinnamon. Top Banana. Blueberry. Juicy Pear. Green Apple. o 6.3. Range of Products: Firstly, the fact that you are able to purchase flavours individually or pick a selection of your own; enables people to pick their favourites and avoid flavours which they don’t like creating a personalised selection for the customer. They also have a selection of assorted flavours such as: 20 Assorted Flavours (the most popular flavours). Sour Mix. Fruit Bowl Mix. Tropical Mix. Smoothie Mix. Ice Cream Parlour Mix. They also have “Sports Beans” selections, that are packed with the nutrients needed to “blast your way through any athletic endeavour”, which include: Orange. Raspberry. Lemon Lime. 20 Fruit Punch. Assorted Flavours. Extreme Cherry. Extreme Watermelon. They also have a “No Added Sugar” assortment bag for people looking for a healthier option. Jelly Belly don't just do confectionery, they have more products such as: Scented Candles (of the Jelly Belly flavours). Scented Phone Cases. Scented Laptop Sleeve. Earphones. Mini Speakers. Car Air Fresheners. Toiletry Sets. Lip Balm. Mugs. Gift Cards. Petite Bean Machine/Jelly Bean Dispensers. Uno Game. Key Rings. Money Tins. And more. With this number and range of products they are appealing to a large audience on different levels rather than just for sweets. WEAKNESSES: o 6.4. Price: The price being on the higher end of the confectionary market means that they use a premium pricing strategy; this isn’t very effective with the recent economy as everyone is trying to save money whether they are upper or lower class. This was also mentioned during the focus groups as a reason why they chose their competitors over Jelly Belly, as they were looking for a larger quantity for the price rather than quality. However they still recognised Jelly Belly as a quality brand. o 6.5. Stocklists: Jelly Belly cannot be purchased in all stores although it states on their website that, “Jelly Belly jelly beans can be purchased at most Waitrose, Sainsbury, Tesco and Morrison outlets.” Along with this they include a store finder which allows you to put your postcode in and search for the closest stores to you that sell Jelly Belly. 21 OPPORTUNITIES: o 6.6. Developing even more flavours: Jelly Belly can constantly develop more flavours for the jelly beans which they can test on the customers, these are also known as the “Rookie Flavours” on their website. This will keep the flavours lively and the customers interested in their products. o 6.7. Expanding for Jelly Belly to be sold in more countries: Currently Jelly Belly are sold in 55 countries around the world, this leaves a lot more countries such as Turkey and Finland which could be potential customers to the Jelly Belly Company. THREATS: o 6.8. Competitors: In the confectionary market there are many competitors so Jelly Belly would not just be keeping up with other companies that manufacture jelly beans but also all other sweets and chocolate companies. o 6.9. Recession: With the current economic state, coming out of a recession, people are trying to save money where they can whether they are upper or lower class. This means that they will not have as much spare money to spend on premium treats like Jelly Belly when they could purchase a cheaper alternative. THREATS INTO OPPORTUNITIES: In terms of competitors, Jelly Belly can look at their competitors advertisement methods and examine what is being successful and what could be improved. They can then apply this information to their own advertising methods. 22 7. References: 1. 2. 3. 4. www. jellybelly-uk.com [Viewed: 18/02/2014] www. jellybelly.com [Viewed: 18/02/2014] http://www.abc1demographic.co.uk/ [Viewed: 19/02/2014] https://www.keynote.co.uk/marketintelligence/view/product/10790/confectionery?utm_source=kn.reports.brows e 5. (http://www.nestle.co.uk/aboutus) 6. (http://www.ferrero.com) 7. (http://www.perfettivanmelle.com/about_history_vanmelle.htm) (http://www.euromonitor.com/perfetti-van-melle-group-in-packagedfood/report) 8. (http://haribo.bg/en/) 9. (http://www.lindt.com/swf/eng/chocolate-gift/) 10. https://www.haribo.com/enGB/products/haribo.html) 11. (https://www.haribo.com/enUS/products/haribo.html) 8. Appendix 1: When looking into the countries such as Turkey and Finland that Jelly Belly are looking to expand too; we found that "Allaboutturkey" there are some basic target audience figures: 2.4. Age structure: o Total population: male 38,473,360 (50.2%) - female 38,194,504 (49,8%) (as of January 2014) 0-14 years: 24,6% , total of 18,849,814 (male 9,691,297; female 9,187,285) (January 2014) 15-64 years: 67.7% , total of 51,926,356 (male 23,655,657; female 23,288,033) (January 2014) 65 years and over: 7.7% , total of 5,891,694 (male 2,150,103; female 2,850,072) (January 2014) o Median age: Total 30.4 years (male: 29,8 years; female: 31 years). More than half of the population is under the median age (as of January 2014) o Population growth rate: 1.37% in 2013 (1.45% in 2010 & 2,11% in 1927) Under 15 years: 1.05 male(s)/female 15-64 years: 1.01 male(s)/female 65 years and over: 0.75 male(s)/female 2.5. Communications: o Mobile GSM Phones: 113 million as of February 2011 (63,9 million in June 2008). 23 o Radio broadcast stations: 36 National, 102 Regional, 955 Local, a total of 1,093 (2005) o Radios: 19.4 million (1997 est.) o Television broadcast stations: 24 National, 17 Regional, 218 Local, a total of 259 (2005) o Internet hosts: 16.874.100 in 2009 (355,215 in 2004). o Internet users: Approximately 35 million in 2013 (20 million in 2008, 8.5 million in 2005, 5.5 million in 2003) These figures suggest that the Turkish society consists of mainly 25 - 30 which falls into Jelly Belly's ideal target audience, and this number is set to increase by 1.37% which means that turkeys consumer market is successful and is unlikely to crumble with the recent recession. This age range has a large disposable income with unemployment being low which means they would be able to enjoy the better things in life. 2.6. Confectionary market in terms of consumers: When looking specifically into the confectionary market for turkey market reports suggested that the market for Confectionery in Turkey increased between 2002-2007, growing at an average annual rate of 2.7%. The leading company in the market in 2007 was Ulker Group. The second-largest player was Cadbury Schweppes plc with Tayas Gida in third place. 2.7. Finland Confectionary Target Audience According to Statistics Finland's statistics on population structure, nearly every tenth of the persons aged 25 to 34 living permanently in Finland at the end of 2012 were of foreign origin. In the Greater Helsinki region, the corresponding proportion at the end of 2012 was nearly one-fifth. o Population (2013 est.): 5,266,114 (growth rate: 0.06%); Looking into Finland, their average and highest percentage of society is between 25 34 and those are suggested to be the most affluent and well paid especially with a large proportion of those being involved in the arts. However Finland's growth is exceptionally lower than Turkey's and it suggests that there isn't much room to be able to penetrate the market at a suitable rate for Jelly Belly. 2.8. Consumers' own and Finland's economy: In November, 33 per cent of consumers believed that Finland’s economic situation would improve in the coming twelve months, while 26 per cent of them thought that the country’s economy would deteriorate. Twelve months earlier the corresponding proportions were 21 and 38 per cent. In all, 25 per cent of consumers believed in November that their own economy would improve and 13 per cent of them feared it would worsen over the year. Consumers' expectations concerning their own and Finland's economy in 12 months' time 24 25