• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Cadbury s marketing objectives for the development of Fuse.

Extracts from this document...


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. Cadbury set out two objectives for the development of Fuse: 1. To grow the market for chocolate confectionery 2. 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. ...read more.


Market research is a process designed to link managers to consumers through information. It is used to identify opportunities and make better informed decisions about products which have future market potential. Market research has revealed that snacks play more of a functional role than one of pure indulgence. Research also shows that successful snack brands in the confectionery category tend 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 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 several places - which aimed to give the new bar the quirky and humorous style which Cadbury sought to appeal to this younger target market. ...read more.


One way of evaluating the effectiveness of advertising and promotional campaigns is to ask market research volunteers to identify advertisements using prompts in a recall test. The Fuse launch had created massive awareness of the new brand, achieving greater prompted awareness than the celebrated Wispa launch. Within just one week of the launch, a record 40 million Fuse bars were sold into the trade and within eight weeks of sale, Cadbury Fuse was the UK's favourite confectionery line, outselling both Mars Bar and Kit Kat by 20% and capturing an astonishing 6.5% of hand-held confectionery product sales. 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. 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: 1. the use of consumer research to identify a significant market opportunity; 2. product research and development combined with extensive consumer testing; 3. Massive trade and consumer hype generated by a national launch. Snacking remains the big opportunity to expand the chocolate market even further. As Fuse moves through the growth phases of its product life-cycle, 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. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our University Degree Marketing section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related University Degree Marketing essays

  1. Chapter Notes on Marketing Management by Philip Kotler 10th Edition

    awareness * Market share and consumer base - high market share companies require less advertising expenditure as a percent of sales. * Competition and clutter * Advertising frequency - number of repetitions needed * Product substitutability - commodity class need heavy advertising.

  2. A PEST analysis for Cadbury Dairy Milk.

    This is one of the most difficult, yet important marketing activities. In simple terms physical distribution involves getting a product from A to B Logistics has a very important role to play in the process of distribution. This is because they start off the process and plan it from beginning to end.

  1. Kit Kat Case Study - 'Kit Kat: Have a break…'

    With the chocolate biscuit market having grown by 20% in the past five years company's are now more than ever having to be continually in touch with customer needs and wants and with Kit Kat's main brand strategy believing in offering consumers value for money this puts them in good stead for the future.

  2. Marketing plan for New Zealand Dairy Food (NZDF) launch of a squeezable yoghurt product.

    (Grocers review, 2004). In the future more flavour of yoghurt products will be developed. Moreover, the existing packaging of yoghurt products cannot meet all of consumers need. Later on, more packaging style will be developed. * The substitutes of yoghurt products can be ice cream, cheese, and other dessert products.

  1. Managerial objectives and the Pricing Strategies

    Determining the right price to sell all of the production profitably and to leave no unsatisfied customers - that is to say, customers who wanted to buy at that price - is like trying to balance a set of kitchen scales - too much weight on either side will cause the scales to tilt.

  2. Introduction to Marketing - Using Sony/Sony Ericsson as an example.

    Analysis of the Type of Customer Supporting what was said earlier a disadvantage of Sony utilising previous records/feedback of what customers felt about the products that they purchased is that there may not be a sufficient amount of ground covered in terms of information about each customer such as how much they earn and their buying habits on products.

  1. United Cereal: Lora Brills Eurobrand Challenge

    Moreover the EU has loosen its regulation of labeling, advertising, and general marketing practices, which also represent some opportunities for UC in the European market. On the other hand, some major threats are facing UC in the European market. In 2003, Kellogg, the toughest competitor, has already introduced Special K

  2. Kudler Fine Foods Product Launch

    Markets have become too competitive to focus on the customer alone without considering other successful marketing avenues (Kotler & Keller, 2007, Pg. 155). The competition in France consists of four gourmet grocery stores in Paris known as les grandes epiceries.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work