• 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

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.

Middle

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.

Conclusion

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. History and current position of Cadbury.

    Moreover, as Food and Drink Europe (2003) pointed out that individual companies were also quick to reassure consumers that they would remove - or in some cases, had already removed - trans-fats from their products, or at least make it clear on the label.

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

    the market share goal * Determine the percentage of the market that should be reached by advertising * Determine the percentage of aware prospects that should be persuaded to try the brand * Determine the advertising impressions per 1 percent trial rate.

  1. Evaluate the marketing strategy of Cadbury's Fuse Bar making recommendations on how they may ...

    The target audience can be split up into segments. Customer segments The market segments are categories where people are spilt depending on the needs and wants of the consumer. Examples could be: * Age * Gender * Income * Where they live * Hobbies * Minority/Ethnic/Religious groups * Socio-economic groups

  2. Cadburys has many famous chocolate products which it has a variety of advertising campaigns ...

    about their product by using media such as TV advertising and price, how much their product is selling for and what type of people can afford them. These p's are important because they decide whether or not the product is successful or not.

  1. promotional objectives- Cadbury's

    Cadbury's Dairy Milk objectives is to sell chocolate bars. In order to achieve their objective they need to complete all necessary task. Objectives are set to be as challenges and targets, Cadbury's objective may be that to take over there competitors Nestle, Snickers, Kit Kat they cannot take over these

  2. Should Cadbury launch a cereal?

    CTB is the market leader in both the sugar and chocolate confectionary market. Also a great bonus is that CTB already has contacts with multiples so it may be easier to convince them to stock the products. Market share This is relevant because I can see how much of the

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

    Introduction: Snacking is a common occurrence in today's society. With a large range of products being offered with different marketing strategies behind each one, competition is fierce in a continually rising market. Nestle Kit Kat that has been around since 1935 and has been Nestle Rowntree's biggest brand since the 1950's with other Rowntree brands being Polo, Rowntree's Fruit Pastilles and many others.

  2. Marketing a new snack in Vietnam.

    For instance, Pringles set the high price for its products due to its quality and tasty flavors. Poca will consider cutting some incurred cost and keeping the same quality as Pringles to set a lower price. Actually, Pringles sells at 12,000 VND for a small 43g tube, while Poca costs

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