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New product development - Wrigey's Vita-gum

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Business Proposal - Vita-gum 1. Introduction Wrigley's is a leading manufacturer of chewing gum and other confectionery products, which was originally founded in Chicago by William Wrigley Jr. in April 1989. In 2007, Wrigley was the world's largest gum company, with a '63% of global market share'. (Marketline, 2009). The company has become a global leading super force with 'operations in more than 40 countries and distributes it world-famous brands in more than 180 countries' (Wrigley.com, 2010). Sales figures for last year in 2009 'totalled just under �189 million' (Fame, 2010). Wrigley sells 12 different brands within the United Kingdom, all well known to the industry. Wrigley has over 100 years experience in selling chewing gum and excellent facilities for which to assist the launch of Vita-gum. Wrigley's employs '548 employees in the UK' (Fame, 2010), for whom many are employed in Wrigley's UK factory located in Plymouth. This factory will provide a superb basis to aid the distribution of vita-gum throughout the UK market and important retail outlets. Wrigley's major UK competitors include the confectionary giants Cadbury's, as well as Super Mouth Limited and Peppersmith chewing gum. Cadbury's caused most controversy after they entered the UK chewing gum market early in 2007 by launching their liquid centred 'Trident Gum'. As a result 'Cadbury's achieved a 15% share of the UK market just 10 weeks after launch' (Times online, 2007). More worryingly for Wrigley was the fact 'Tridents sales reached �33 million by June 2008' (Mintel, 2009). Until the arrival of Trident, Wrigley, a family-controlled company based in Chicago, 'had a 98 per cent of the British market' (Times online, 2007). Despite the competition Wrigley remained upbeat with sales figures of just under '�199 million during 2008'. (Fame, 2010). This also demonstrates the extreme loyalty of customers showing they were still willing to purchase Wrigley branded products even with increased competition within the gum market. ...read more.


Figure 3: Bar graph showing the appealing features of chewing gum 2007 based on 1000 adults aged 16+. Source: Mintel (2007) The table also shows that 7% of people also chew gum for functional benefits e.g. vitamins. Even though this statistic is low its still represents a positive correlation in the sense that no chewing gum such as vita gum has been tried and tested before. However through Wrigley's, Vita-gum will draw a positive association to consumers and this percentage has the potential to rapidly rise. Vita-gum appeals to the consumer's psychographic interests - people who are intent on carrying out a healthy lifestyle. For this reason healthier people target adequate vitamin intake to maintain their health fitness. Moreover, this would be an ideal product to sell to these sorts of customers as they can pocket this product and chew the gum at their own accord as they are likely to be on the move a lot. 4. Brand positioning Vita-gum is a unique brand and is a designed differently to other brands competing in the same market, which will allow customers' to perceive something completely different, namely through product differentiation. 'Product differentiation seeks to increase the value of the product or service on offer to the consumer' (Hooley et al, 2004 p.375). The brand offered is different from other brands; it offers that extra quality in value. In view of the customer's mind the packaging colour will be different to other competing brands in the same market. The product will also deliver better functional needs in terms of health benefits to the consumer as opposed to other chewing gum brands in the market. Perceptual mapping provides an excellent illustrating of how competitors and branded products are competing in the same market. 'Perceptual mapping represents a geometric comparison of how competing products are perceived' (Sinclair and Stalling, 1990 pg.58). Figure 4 below shows how other competitors are fairing in the market, but also show how some Wrigley's own brands are performing based on the price of gum and the quality perceived in terms of functional use to the customer. ...read more.


The Vita-gum advert will operate on ITV1 between the hours of 7pm and 11pm as these target markets are more likely to watch television during this period. Furthermore, posters will also act as another function for promoting this product to the customer. The picture will incorporate an image what is shown within the advert. This will be constructed as an image of David Beckham holding Vita-gum. Again this should draw the attention of customer's to the product as they will know straight away who the person on the poster is. Vita-gum will also be representative in health magazines for both young men and women. Again this will pinpoint its focus on the functional and rational appeals it offers to the reader, mainly targeting people who adopt a healthy lifestyle. Vita-gum will also give the opportunity for customers to view the product online. The website will be printed in writing in the various mediums mentioned allowing people to have a more detailed look at the product and what it offers to them. The campaign intensity will cover a period of 2-3 months. This should provide enough time for the delivery of the product's rational and emotional appeals to the customers. Results of the intensive campaign will include monitoring the number of sales once the advert has been first shown to the public. The website will also act as a form of monitoring results- numbers will be monitored to see how many people visit the website. On entering the website customers will briefly have to select their age category, what their occupation is and what their interests are in order to analyse if the target markets specified are being targeted appropriately. In conclusion Vita gum is definitely in line for a push into the gum market. Based on market research and customer preference this type of product would be well suited to the public. Moreover, Wrigley's is one of the leading gum company's therefore its recognition in the market is attractive to consumers. With Wrigley's own new innovative brand Vita-gum consumers will draw a positive association to the product knowing it's of top quality. ...read more.

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