Marketing. In my project, I am going to be looking at how Nestls Smarties are marketed. I will include my own research about the product marketing to get a good idea of how they market their product now.

WHSmiths – 36p        WHSmiths –        

Woolworths – 36p        Woolworths –        

Wilkinsons – 32p        Wilkinsons –

Co-op – 36p                                                     Co-op – 35p        

Local newsagents – 32p        Local newsagents – 30p

Price of Magic stars        Price of Chocolate buttons

Tesco –         Tesco –

Morrisons –        Morrisons –        

WHSmiths –        WHSmiths –        

Woolworths –         Woolworths –        

Wilkinsons –        Wilkinsons –

Co-op – 39p                                                     Co-op – 39p        

Local newsagents –38p        Local newsagents –36p

 

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Taste test

Smarties

Skittles

Magic Stars

Chocolate Buttons

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Trial Questionnaire

1. Gender?

1. ٱ Male
2. ٱ Female

2. How old are you?

1. ٱ 0-6
2. ٱ 7-11
3. ٱ 12-19
4. ٱ 20-30
5. ٱ 30-50
6. ٱ 50+

3. What is your occupation?

Please state__________________

4. How often do you buy Smarties?

1. ٱ Every day
2. ٱ Once a week
3. ٱ Once a month
4. ٱ Less than once a month
5. ٱ Never

5. How much does it usually cost?

1. ٱ 0-15p
2. ٱ 16-30p
3. ٱ 31p-35p
4. ٱ 36p+

6. How well do you think this is priced?

1. ٱ Very good
2. ٱ Good
3. ٱ Average
4. ٱ Poor
5. ٱ Very poor

7. What shop do you usually buy it from?

1. ٱ Supermarket
2. ٱ Newsagents
3. ٱ Petrol station
4. ٱ Convenience store
5. ٱ Other

Please state__________________

8. Which of the following children's sweets do you prefer?

1. ٱ Smarties
2. ٱ Skittles
3. ٱ Chocolate buttons
4. ٱ Milky way magic stars
5. ٱ Jelly babies
6. ٱ Other

  Please state__________________

9.          Can you describe what the Smarties packaging looks like?

Please state__________________

10.          Have you ever bought any of the following Smarties products?

1. ٱ Smarties Easter Eggs
2. ٱ Smarties Chocolate bars
3. ٱ Fruity Smarties
4. ٱ Christmas Giant tubes
5. ٱ Mini Smarties
6. ٱ Smarties cookies

11.          Can you think of any Smarties slogans?

Please state__________________

12.          What Smarties product would you most like to see next?

1. ٱ Smarties cake
2. ٱ Smarties cereal
3. ٱ Smarties T-Shirts
4. ٱ White chocolate Smarties
5. ٱ Other

Please state__________________

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Questionnaire

1. Gender?

1. ٱ Male
2. ٱ Female

2. How old are you?

1. ٱ 0-6
2. ٱ 7-11
3. ٱ 12-19
4. ٱ 20-30
5. ٱ 30-50
6. ٱ 50+

3. What is your occupation?

Please state__________________

4. How often do you buy Smarties?

1. ٱ Every day
2. ٱ Once a week
3. ٱ Once a month
4. ٱ Less than once a month
5. ٱ Never

5. How much does it usually cost?

1. ٱ 29p-31p
2. ٱ 32p-34p
3. ٱ 35p-37p
4. ٱ 38p+

6. How well do you think this is priced?

1. ٱ Very good
2. ٱ Good
3. ٱ Average
4. ٱ Poor
5. ٱ Very poor

7. What shop do you usually buy it from?

1. ٱ Supermarket
2. ٱ Newsagents
3. ٱ Petrol station
4. ٱ Convenience store
5. ٱ Vending machines
6. ٱ Other

Please state__________________

8. Which of the following children's sweets do you prefer?

1. ٱ Smarties
2. ٱ Skittles
3. ٱ Chocolate buttons
4. ٱ Milky way magic stars
5. ٱ Jelly babies
6. ٱ Other

Please state__________________

9.          Can you describe what the Smarties packaging looks like?

Please state__________________

10.          Have you ever bought any of the following Smarties products?

1. ٱ Smarties Easter Eggs
2. ٱ Smarties Chocolate bars
3. ٱ Fruity Smarties
4. ٱ Christmas Giant tubes
5. ٱ Mini Smarties
6. ٱ Smarties cookies
7. ٱ Smarties mini cakes
8. ٱ Smarties pop up ice creams

11.          Can you think of any Smarties slogans?

Please state__________________

12.          What Smarties product would you most like to see next?

1. ٱ Smarties cereal
2. ٱ Smarties T-Shirts
3. ٱ White chocolate Smarties
4. ٱ Other

Please state__________________

Explanation of questionnaire

Question 1 was asked to find out whether there were any links between their gender and their answers.

Question 2 was asked to find out whether there were links between the age of the person and their answers.

Question 3 attempted to find out the socio economic group of the sample.

Question 4 was asked to see how often the product is bought.

Question 5 was asked to find out where the product is mainly bought.

Question 6 was asked to find out whether people thought the prices were higher or lower than they actually are.

Question 7 was asked to find out what people thought about the prices.

Question 8 was asked to find out how the product compared to its competitors

Question 9 was asked to find out how well known the packaging is.

Question 10 was asked to find out how well the other Smarties products are doing

Question 11 was asked to find out if any of the advertising campaigns were memorable

Question 12 was asked to find out what else the consumers would want.

The sample I chose was children because I wanted to find out what the target market thought of the product and how well the marketing is reaching the target market.

I did a trial questionnaire to find out if there were any errors or misinterpreted questions. I had to change question 12 because I suggested Smarties cake bars as a new product and I found out that they are already an existing product. I also changed question 6 because some of the choices weren’t prices that would be charged I put some neutral questions at the beginning to ease into the questionnaire and I tried to make personal questions seem as normal as possible. I changed the order of half the Questionnaires because I think the order could influences the decision

Questionnaires aren’t entirely accurate you have to take into account telescoping error, which is when people remember events to have happened more recently than they did. You also have to take into account recall loss, which is when people completely forget that the event actually happened.

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Results of Questionnaire

95% of my sample were students with no jobs so they had a small amount of money to spend

Out of the people I asked, 76% buy Smarties less than once a month. Only 5% said they never buy Smarties and 20% buy Smarties once a month.

Everybody seems to know the price range of Smarties the one person who chose the 38p+ option bought his from a vending machine. This means the price is well known by the target market

85 % think that the pricing is average and 15% think it is poor. This is mainly the result expected when competitive pricing is used.

75% of the Smarties are bought in the local shops, 25% are bought in supermarkets and 1% are bought in vending machines.

The children's sweets are spread out quite even with Smarties towards the bottom end of the popularity.

90% of the people asked can describe the packaging. This shows that the brand is strong and people are very familiar with the packaging.

85% of people can’t remember any of Smarties slogans. Slogans can be useful at making a product stick in someone’s memory.

70% of People would like to see Smarties move into cereals and 30% want to see white chocolate Smarties. These are products Smarties might want to look at in the future.

Most of the Smarties products are doing well. Fruity Smarties the latest brand extension is doing the best maybe because it had a successful advertising campaign. The other products did not get much publicity so people did not know about them.

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Target market

Knowing your target market is essential information if you want to market your product well. When you know your target market you can market your product around them and it will reach them more effectively. The target market can be broken down into different sections and tells you about the majority of the consumers.

Geographic

This is all about where they live and includes information like the region, the climate and the population density. The target market for Smarties covers all the UK where the climate is cold and wet. The average rainfall is 1125mm per year and the average hours of sunshine per year is 1339.7.

Demographic

This is information about the person like their age, their gender, their ethnicity, their education, their income, their family status, and their socio-economic group. Smarties target market is primarily children who are both male and female. Because it is a children's product it doesn’t really target ethnicity, education, income, family status or socio-economic group for the reason that children tend not to buy things because of these factors.

Psychographic

This is to do with the lifestyle and attitudes of the target market. The target market for Smarties has a very active lifestyle where sweets are a luxurious product. Their attitude towards sweets is positive and they are not worried by the products affect on their health. It is well known that children eat sweets, they are loved so much by children that parents see them as a way to make them behave by bribing them with it.

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Product

Product life cycle 

Products go through a number of stages from introduction to decline. This is known as the product life cycle. It is often plotted on a graph like the one on the left.

Not all products go through all the stages; some go from introduction straight to decline.

Where a product is in the product life cycle affects how the product is marketed.

Introduction - The product is promoted to create awareness. If the product does not have many competitors, a skimming price strategy is used to get back money used on development.

Growth - This is where the product tries to develop brand. It focuses a lot on advertising and the product becomes more profitable

Maturity - Products that survived the other two stages usually spend most time in stage. The sales growth slows then stabilises. There is a lot of competition and products aim to differentiate themselves. The pricing becomes more competitive and the market becomes saturated.

Decline - this happens when a more advanced product is introduced or consumers’ tastes change. The focus is on cutting costs and reducing marketing spending.

I would say Smarties is in the maturity section of its’ product life cycle so the focus is on differentiation and brand extension.

When Smarties were introduced in 1937, they were first called chocolate beans they were soon changed and packaged into the familiar tubes we recognise and has been the most popular sweet in the children’s market for many years. Even though it is just a children’s product it is one of the main confectionary brands and has a very strong brand.

Most Smarties are eaten by children, so Nestle believes a large amount of the buying is done by parents and grandparents who see Smarties as attractive, well-packaged sweets and remember them from when they were children. The amount of Smarties sell suggests that they aren’t just bought for children.

Market Research

Research has been used in the past to improve the product. The blue Smarties were introduced as a trial and were successful now they are included in all packs. There was also research into the brown Smarties which used to be coffee flavoured but market research found out that the target market would prefer no flavouring to the coffee one.

Brand extension

Brand extension is using a brand name to launch a new or similar product. Smarties have been in the maturity stage of its’ product life cycle for a very long time so it has produced a number of brand extensions. In addition to the original Smarties, they now have Mini Smarties, Smarties cookies, Smarties mini cakes and Smarties pop up ice creams. They have also launched Smarties Chocolate bars and Fruity Smarties, which were made using tie-ups with Ritter Sport and Haribo.

USP

Smarties is a unique product, no other product is similar to it so the product itself is a USP. Other USPs are the lids which have letters on this allows the children to collect the letters and spell out their name or other words. Some letters are deliberately made in smaller quantities to increase purchase

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Promotion

Promoting the product influences people to buy. Promoting a product includes doing things like advertising, sales promotions and seasonal promotions. It is useful to maintain or increase sales.

Before starting any promotion the organisation should plot a break-even graph should be made and then they should find out the value of the customer to see if they are worth gaining.

Advertising

The aim of advertising is to get the consumer to want the product before they have seen it. Many companies think it is so important they get advertising agencies to develop their advertisements and spend huge amounts of money on them.

As Smarties are in the maturity stage and have an extremely strong brand, they don’t need to advertise a lot unless they are launching a new brand extension. Smarties have not had an advert for a very long time but many people still remember the slogan “only Smarties have the answer”. The most recent advertising campaign has been for the new product fruity Smarties to promote awareness of that and was very short.

Sponsorship

Smarties are involved in quite a bit of sponsorship. They sponsor the Smarties Book Prize which is an annual award given to children's books, the smash hits schools tour which is a competition were you could win a DJ to come to your school. They have also made a game in co-operation with smash hits. Rahul Patel, assistant brand manager for Smarties at Nestle, said: "The 'Supa Snooper' game aims to help build the credibility of Smarties among nine to eleven year-olds and, more specifically, of the Smarties bar with 10 to 15 year-olds, as well as to drive trial and repeat purchase of Smarties products. The popularity of the internet among this target audience makes it an important medium to use in the campaign." All these sponsorships have been chosen to meet the target market and are working well. It is partnered with other products and services that are associated with and will interest children

Seasonal promotions

Special occasions are often a good time for organisations to make some profit especially with gift products like chocolate. Nestlé know this and they bring out giant Smarties tubes at Christmas, they also have Smarties in the children's selection packs. At Easter, they bring out a Smarties Easter egg, which is one of the best selling Easter eggs. They bring out limited additions like the Smarties cool dudes and the Smarties greenies.

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Price

When pricing the product two main factors have to be considered. They are the amount of profit you want to get from it and how much the target market is willing to pay. Before launching a product market research is usually done to find out how much the target market is willing to pay, this helps to find out whether the product will be profitable.

The price survey that I conducted shows that the price strategy they have chosen to use is competitive pricing. They also use discrimination pricing in vending machines where they charge for convenience.

The reasons they are using this pricing strategy is because they are in the maturity stage of their product life cycle and the market is very competitive so they are trying to stay at the top by competing for the best price. Using this method will lower the profit but if you can’t beat your competitors on price you need to have something that your competitors don’t have and that is very hard in the confectionery market.

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Place

In order for the product to get to the consumer, it has to select a channel of distribution

A. Manufacturer--------------------------------------------------------------------->Consumer

B. Manufacturer--------------------------------------------->Retailer------------->Consumer

C. Manufacturer-------------------->Wholesaler---------------------------------->Consumer

D. Manufacturer--------------------->Wholesaler---------->Retailer------------>Consumer

Channel A is from the manufacturer to the consumer this is not commonly used with food and Smarties aren’t sold using this channel.

Channel B is from the manufacturer to the retailer to the consumer. This is often used with supermarkets.

Channel C is from the manufacturer to the wholesaler to the consumer and is not very common.

Channel D is from the manufacturer to the wholesaler to the retailer to the consumer and this is the most common channel that Smarties use.

Smarties are well placed in most shops they are either in the kids’ section at the bottom, which is where children look, or at the display trays on the counters. As most of the times buying chocolate is spontaneous it is found in most food stores but also in some other shops like WH Smiths.

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Packaging

The purpose of packaging is to protect the product and contain the product but it can also be used to give information and attract consumers. 

Brand name and logo

The brand name and the logo are very important in packaging it has to be a catchy name. If we try the product and like it, we will remember the name and usually buy it again. In a market where there are many similar products, the consumer would buy the one that it knows instead of the one it does not know. A product that is successful at branding builds up brand loyalty where the consumer becomes loyal to the product and buys it each time. All organisations want their product to become a household name like Hoover or Sony because when they do they become associated with quality. People are more likely to buy one of these products instead of a less well-known product.

The packaging for Smarties is instantly recognisable for its unique tube design, its bright colours and its bubble writing. This takes up the more than half of the packaging the rest of the packaging gives us information. There is an ingredients list, nutritional information, the customer services number and its copyright the best before date is printed on the lid. The packaging is made to open easily for little children with the lid.

Cans have merlin stickers

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SWOT Analysis

To use this swot analysis to help your marketing there is a SWOT matrix

Smarties should use their strong brand name, their good reputation and their USP to take advantage of the removal of trade barriers. They should use their strong brand name, their good reputation and their USP to defend against the competitors. They should overcome the unhealthy aspect of their product and focus more on showing off their strengths. They should finally have an advertising campaign and an argument for their product in case any competitors try to attack their product.

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Conclusion

A conclusion should

• stress the importance of the thesis statement,
• give the essay a sense of completeness, and
• leave a final impression on the reader.

My research shows that in the taste test the product looked attractive enough but did not get very good marks in taste and texture. The product is reaching their target market effectively by sponsoring the book prize and creating competitions and games in co-operation with Smash hits, a children's magazine. Smarties has been at the top of the children's sweet market for a long time and has stayed there by using successful brand extensions and researching consumer tastes to improve their product. It has been able to differentiate itself from other products by coming up with unique innovative ideas. I think they have made the right choice not to advertise too much because it is unnecessary and the seasonal promotions do very well in Christmas and Easter. The packaging is unique, it has been around for many years and has become very easily recognised. The Smarties brand has become a household name and is associated with quality. My questionnaire told me that Most of the Smarties marketing is successful except for the recent advertising because no-one remembers the slogans. I believe that Smarties marketing strategy has been successful but could still be improved.

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Recommendations

Product

I think that the existing product is well researched and very successful. Changing it would not be very popular but perhaps upgrading the quality of the chocolate. This would help because the taste test showed Smarties had the lowest marks for taste and texture I think that the product still has some more room for diversification into other areas. A Smarties cereal was quite popular in the questionnaire. It would have to be well researched into consumer tastes but would probably be quite successful if marketed well because children often choose the cereal.

Price

The price seems to be about right but the consumer weren’t entirely happy and some thought it was poor. I think that with the changes in quality the consumers would not care so much about the price.

Place

This part of the marketing is done well it is in all the right places. They could think about introducing the product into other countries.

Packaging

I think the packaging should be left looking the same because it is easy to open for children, very recognisable and part of the brand. I think it should be made out of recycled materials so it can show itself to be environmentally friendly and it will improve the overall image of the brand. They could also put information about the competition they are running and have a joke on the packaging.

Promotion

I think that the promotion is effective but they could work with a wider variety of organisations to make the product appeal to more people. There needs to be a catchy slogan, it could be printed on the packaging.

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Evaluation

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Criterion 1 (4 marks)

Setting of an aim appropriate to the investigation

Candidates should ensure that the aims of their investigation are clearly stated at the outset of

the work.

An explanation of the methodology to be used to achieve the aim should also be given, e.g. how

and where data will be collected, which aspects and techniques of Business Studies work are to

be used and how data will be presented.

Criterion 2 (11 marks)

Collection of information

Sufficient information should be presented to achieve the stated aims of the assignment.

Consideration should be given to both width and depth. In a marketing assignment based on the

4 Ps, it would clearly be inappropriate to only cover 3 Ps. When considering pricing, thought

should be given to the number of pricing strategies that should be included in the study. This

will depend on the business situation under investigation, with larger organisations often using a

variety of strategies.

When conducting primary research in the form of interviews or questionnaires, candidates

should collect enough information to allow reasoned analysis and recommendations to be made.

The number of questionnaires to be used cannot be prescribed, though clearly a candidate

should not suggest sweeping changes to a business based on the results from 10 interviews.

Candidates can jointly gather data in order to obtain a wider, and more meaningful database (as

used in the supported assignment). Subsequent analysis and evaluation must be on an

individual basis.

The guidance figures of 1250 words and five hours for the assignment should also be an ongoing

consideration. Candidates should not feel under pressure to produce volumes of

information in order to succeed at the higher mark levels. Concise and relevant information is

required, rather than, for example, large amounts of business produced literature.

Criterion 3 (7 marks)

Presentation of information

Business studies students should be able to communicate information in a variety of ways,

maintaining a clear, logical approach to their work.

There are a number of ways in which information can be effectively presented. Choice of

methods will be influenced by the context of the investigation, and may include the following:

Text The obvious choice for the majority of information which is being presented.

Maps When investigating location in any context, maps are essential. They may show the site

and the wider area surrounding the business. Annotation of maps to highlight the importance of

various features would also be beneficial.

Photographs These can be used to present a lot of information for which text may be

unsuitable, e.g. indicating competitors around a particular business, showing the layout of a

business. In all cases, suitable annotation should be used to indicate which aspects of the

assignment the photograph is presenting.

Graphs Graphs are clearly suitable for the presentation of numerical data. The style of graph

used should be chosen carefully, in order to ensure data is presented clearly. Computer

generated graphs are clear and precise, though hand drawn examples will not be penalised,

providing they display the relevant data clearly.

Charts and diagrams These can often show information more clearly than text. Organisation

charts and flow diagrams indicating a sequence of events can be used to good effect.

Business generated material This should be used sparingly. Including, for example, entire

sales brochures in an assignment should be avoided. Candidates should be encouraged to

carefully select parts of the material which illustrate the point they wish to make.

Criterion 4 (11 marks)

Use of business language, techniques and concepts

Candidates should use business language throughout their assignment, displaying understanding

and the ability to apply techniques and concepts in the context of the study.

The language used will be governed by the assignment title. For example, marketing based

work will require use of concepts such as the product life cycle, segmentation, market research

techniques, promotion methods etc. In all cases, candidates should ensure that the language,

techniques and concepts are applied to the business under investigation, and not simply

described.

Criterion 5 (12 marks)

Analysis and interpretation of data

Within an assignment, candidates should fully analyse the data collected, recognising the

importance of the results in the context of the study. When using graphs as part of the analysis,

candidates should not simply repeat in words that which the graph has already shown.

Figures, and percentages where appropriate, should be used to add clarity to the analysis.

Vague statements such as ‘a lot of people said…’ should be avoided.

The results of the analysis should provide the basis for the later recommendations in the

assignment.

Criterion 6 (11 marks)

Evaluation and recommendations

This section would normally appear at the end of an assignment, bringing together the data

collected and its analysis, in an organised and justified argument.

Figures should once again be used to add clarity to the work, and to give weight to the

recommendations being made. It is of little help to suggest that a business should reduce its

prices without offering evidence from the data which supports such a view.

Evaluation and recommendations should be balanced, taking into account the width of the

information collected, and not just a particular section which suits the writer.

Quality of Written Communication (4 marks)

Candidates should be made aware that their work will be given a mark based on the quality of

their written communication. The need for checks on the clarity of expression, spelling,

punctuation and grammar should be emphasised, especially where business terminology is used.

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8.3 MARKING CRITERIA FOR INTERNALLY ASSESSED WORK

Criterion 1 A clear aim appropriate to the investigation Max 4

A clear aim is stated, with appropriate

understanding of methodology to achieve the

aim.

3-4

An aim is stated with some appreciation of

methodology.

1-2

Criterion 2 Collection of Information Max 11

Detailed primary/secondary information showing

clear understanding of the aims. The information

is sufficient to pursue the investigation.

9-11

Information gathered is clearly relevant to the

investigation.

6-8

Information collected has relevance to the

investigation but is insufficient in some respects.

3-5

Some primary/secondary information has been

collected showing limited understanding of the

aim.

1-2

Criterion 3 Presentation of Information Max 7

Information is presented in an accurate, effective

and logical manner in relation to its nature and

the aims of the investigation.

7

Information is presented well but in some ways it

lacks accuracy, logic, effectiveness or relevance

to the investigation.

5-6

The information presented shows weaknesses in

accuracy and effectiveness.

3-4

The presentation is at times inappropriate but

there is evidence of attempts to present the data.

1-2

Criterion 4 Use of business language, techniques and

concepts

Max 11

Clear use and application of language, techniques

and concepts appropriate to the investigation.

9-11

Some gaps in use and application of language,

techniques or concepts or limited understanding

in some cases within an otherwise good

approach.

6-8

Language, techniques and concepts are not

always understood or applied to the

investigation.

3-5

Use and application of business language is

inappropriate and/or absent.

1-2

Criterion 5 Analysis and interpretation of information Max 12

Good organisation, interpretation and analysis of

the information in the light of the investigation,

the information collected and subject content.

10-12

The analysis or interpretation is good but

incomplete in the light of the investigation,

information collected and subject content.

7-9

There are significant weaknesses in the analysis

and interpretation but there is evidence of

understanding.

4-6

There is an attempt to organise and analyse the

data.

1-3

Criterion 6 Evaluation and recommendations Max 11

The work consistently shows evidence of

effective evaluation and reasoning in line with

the investigation.

9-11

Evaluation is good but incomplete or not in line

with the aims of the investigation.

6-8

The evaluation or reasoning is sufficient in some

respects but incomplete or inaccurate in others.

3-5

There is some evidence of evaluation or

reasoning in the work.

1-2

Quality of Written Communication Max 4

Ideas are expressed clearly, fluently, legibly

and in an appropriate way. There are few

errors in spelling, punctuation and grammar.

3-4

Straightforward ideas are expressed relatively

clearly, legibly and appropriately. There may

be some errors of spelling, punctuation and

grammar, but these do not obscure the meaning

of the answer.

1-2

Candidate fails to reach the threshold standard

in all respects.

0

TOTAL 60