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Revealing opportunities to
strengthen & diversify
portfolio
Chocolate biscuits
Chocolate Biscuits Case Study 1
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
Background
Chocolate Biscuits Case Study 2
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
Project and sample
Chocolate Biscuits Case Study 3
Chocolate Biscuit Eaters
27% 12% 12% 23% 13% 13%
Buy
Cadbury
brands
Segmenting consumers on attitudes revealed…
A broad attitudinal split between “Indulgers” and Limiters”
BUT Cadbury brands only reaching 50% of chocolate biscuits consumers
BiscuitBarrels Chocoholics
Chocolate Avoiders Controllers Naturals
Experiment-alists
Indulgers Limiters
Chocolate Biscuits Case Study 4
Shorties
Digestives
Choc chip cookies
Wafers
Midler
Orange Creams
NO OVERLAP HIGH OVERLAP
Cadbury’s Brands
Looking at purchase behaviour revealed…
Many of the Cadbury‟s brands are competing with each other - both a strength and a weakness
Chocolate Biscuits Case Study 5
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 6
O/LABEL
COOKIES
PENGUIN/
KIT KATC.SNACKS
(BAG)
C.ANIMALS
C.SNACK
(BARS) C.CHOC
FINGERS
C.WAFERS
E.CLASSIC
CREAMS
C.CHOC
CHIP
COOKIES
CHOC HOB
NOBS
Tasty/ eat
anytime
Convenient
Out of home
Children
Hot drink
Treat/ “best”
Chocolate
How are the brands positioned?
Chocolate Biscuits Case Study 7
O/LABEL
COOKIES
PENGUIN/
KIT KATC.SNACKS
(BAG)
C.ANIMALS
C.SNACK
(BARS) C.CHOC
FINGERS
C.WAFERS
E.CLASSIC
CREAMS
C.CHOC
CHIP
COOKIES
CHOC HOB
NOBS
This led to the recognition of “Fortress Cadbury's”
“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
Chocolate Biscuits Case Study 8
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 9
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
Rank in
market
Rank for
Cadbury FingersReasons for Choice
For Cadbury Fingers… Communication focus needs to be on chocolate, treat/fun, children.
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 10
Fox’s Creams
Sector 2
Cookies
Penguin
Kit Kat
Sector 4
Sector 1
Sector 3
OL Cookies
Choc Hob Nob
C. Assortment
Cadbury Fingers
C. Animals
C. Snacks
C. Wafers
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
Chocolate Biscuits Case Study 11
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
Decisions taken following the research