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Marketing Presentation


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Marketing Presentation

  1. 1. CHOCOMONSTERS An army of Chocomonsters ABC ltd
  3. 3. EXTERNAL ANALYSIS Innovation: Internet and web: • Games = Kinder, Nestle and Cadbury have interactive games for kids on their website • About us and ethics • Cooking and recipe's • Colourful websites • Social networking
  4. 4. EXTERNAL ANALYSIS Competitor Analysis: Nature of competition – Who are our main competitors? • • • • Mars – Key products = Milky way, Mars bar, Maltesers, Galaxy Cadbury – Key products = Dairy Milk, Flake and Twirl. Nestle – Key products = Milky bar, Kit Kat, Yorkie, Munchies, Crunch, Smarties. Ferroro – Key products = Kinder Eggs, Kinder beuno. Who are our indirect competitors? • • • • Haribo -Key products = Haribo starmix, Tangfastics, Supermix, Goldbears, Maom products. Rowntree - key products = Rowntree randoms, Fruit pastels, Jelly tots, Fruit gums. Swizzles Matlow – Key products = Drum sticks, Love hearts, Refreshers, Parma violets. Walkers – Key products = Walkers crisps, Sensations, Doritos, French Fries, Quavers, Monster munch.
  5. 5. EXTERNAL ANALYSIS Economic environment: • • • • • • • Confectionary traditionally recession proof Annual growth of confectionary market hovers around 5%. Volume in sales grew by only 0.9% Household disposable income has increased but so have the costs of living. Over the past 5 years inflation has remained above the Bank of England's target of 2% Unemployment increased in 2012 with 1.5 million claiming job seekers allowance UK confectionary market recorded a 14% increase in sales to reach £3.7billion • Forecast = • As the economy picks up so will sales - pushing up the confectionary market • Based on inflation hikes and pace of innovation Mintel expects value growth in confectionary market to reach £4.2 billion by 2017.
  6. 6. EXTERNAL ANALYSIS Demographic Environment: • Population has grown year on year since 2008. In 2011 there were 63.2million residents in the UK. • 25-34 year olds and 35-44 year olds are the two most likely groups to buy chocolate on impulse. The two biggest groups with children. • People aged 0 to 14 years old are expected to rise by 9% from to 12 million by 2033 Regulatory: • The Food Safety Act 1990(as amended). Enforces food safety provisions. • The General Food law Regulation 2002. Aims to protect consumers and establish their rights. • The Association of chocolate, biscuit and confectionary industries of the EU. And The Food and Drink federation.
  7. 7. EXTERNAL ANALYSIS Infrastructure: • • • • • Main sources of cocoa are West Africa, Latin America and South East Asia. Nestle, Mars and Mondelez control 40% of the global cocoa supply. Transport is usually provided by a 3rd party company. Advertising is also usually carried out by a 3rd party. Main media advertising expenditure on confectionary has increased by 3.6% to £100.8 million. • Expos and conventions are becoming more popular. Such as the Sweet and snacks expo and the International food and drink event. • Our main competitors have Facebook and Twitter
  8. 8. EXTERNAL ANALYSIS Partners: • Suppliers being abroad may present a challenge. • Toy manufactures. • 3rd party advertising agencies and logistical firms. Socio-Cultural Environment: • Constant changes in beliefs. CSR is much more important especially in food inudstries. • Mars have pledged to purchase their cocoa supply from sustainable sources by 2020. • Mondelez announced it would be investing $400 million into cocoa farming communities. • Nestle have made Kit Kats Fair Trade.
  9. 9. MARKET AND COMPETITOR ANALYSIS • Size and growth of the market and an analysis of our competition.
  10. 10. MARKET ANALYSIS Size and Growth of overall market: • UK chocolate confectionary market recorded a 14% increase in value sales between 2007 and 2012 to reach £3.7 million. • Rising prices have been the main driver of value growth, and chocolate has an ‘affordable treat’ status that is well placed to support future demand. • Mintel forecasts a value growth in the chocolate confectionary market of 15% • Sales of chocolate confectionary increased by approximately 5% between 2009 and 2010.
  11. 11. MARKET ANALYSIS Total UK retail volume of sales Total £m % Annual change Total M (kg) % Annual change 2006 3,190 Na 427 Na 2007 3,390 +5.9 427 0 2008 3,461 +1.8 428 +0.2 2009 3,554 +1.6 403 -5.8 2010 3,732 4.1 402 • Volume of sales is increasing in the chocolate confectionary market. Whereas the volume of products in Kilograms is actually decreasing. -0.2 Best and Worse case forecasts for UK value of chocolate confectionary Worse-Case (Forecast) £m % Annual change Best-Case (Forecast) £m % Annual change 2012 3,733 +2.2 3,733 +2.2 2013 3,652 -2.2 3,986 +6.8 2014 3,731 +2.2 4,108 +3.1 2015 3,826 +2.5 4,259 +3.7 2016 3,921 +2.5 4,418 +3.7 2017 4,013 +2.3 4,577 +3.6 • In the worst case scenario sales have a steady increase year of year at around 2.2% • In the best case scenario sales will increase year on year around 4%
  12. 12. MARKET ANALYSIS Cadbury: Market share = 34% Strengths: • Market leader in the UK and renowned worldwide • Easily distinctive from other brands • Positive perception surrounds the brand with strong consumer loyalty • Dairy Milk is the most consumed chocolate in the UK • Strong parent brand • Strong R&D and innovation • Wide product portfolio • Over 71,000 employees Weaknesses: • A few controversies surround the brand • A few instances of product recalling – dairy milk caramel Market Share 23% 34% Mars: Market share = 26% Strengths: • Globally recognised with a strong product portfolio • Around 70,000 employees • Strong customer loyalty • Strong financial power Weaknesses: • Protest from vegetarian people over use of animal rennet Nestle: Market share = 17% Strengths: • More than 140 years in the industry • Employee strength of around 328,000 • Wide product range • Own several popular brands like Boost, KitKat, Haagen-Dazs • CSR activities Weaknesses: • Limited market share Cadbury Mars Nestle 17% 26% Other
  13. 13. MARKET ANALYSIS Competitor Analysis Leading brans sales and shares in UK chocolate confectionary market 2013 Market Share % Sales £m Cadbury Dairy Milk (Mondelez) 13 495 Galaxy (Mars) 7 267 Maltesers (Mars) 4 155 KitKat (Nestle) 4 145 Mars Bar (Mars) 3 123 Snickers (Mars) 3 115 Thorntons (Thorntons) 3 108 Quality Street (Nestle) 3 97 Twirl (Mondelez) 3 95 Aero (Nestle) 2 94 Celebrations (Mars) 2 93 Wispa (Mondelez) 2 89 M&M’s (Mars) 2 75 Roses (Mondelez) 2 68 Milkybar (Nestle) 2 66 Own-label 5 196 Other 40 1,491 • Shows the spread of leading brands and how companies like Mars have several dominant brands. • Shows a large gap between Diary Milk and Galaxy
  14. 14. SWOT ANALYSIS • Strengths, weaknesses, opportunities and threats of the market
  15. 15. SWOT ANALYSIS OF THE MARKET Strengths • Wide variation in price - giving us more price discretion • UK is one of the major markets in terms of global per-capita consumption of chocolate confectionary • Seasonal occasions boost sales of chocolate in particular Easter and Christmas • Confectionary is very popular among children and this is likely to continue into the future Opportunities • Limited-edition products help generate sales • Promotional activity or new packaging can boost sales, especially when timed to coincide with specific seasonal occasions • Social networking has become increasingly popular. Weaknesses Threats • A large amount of investment is necessary by companies in order to retain a strong brand presence and encourage impulse purchases • Launching new products in the confectionary market can be financially risky as new brands have to compete with large preexisting brands with lots of power. • Market is subject to strict legislation as being part of the food industry • During the recession supermarkets began to introduce their own cheaper ranges • Rising input costs have increased retail prices threatening chocolates low-price indulgence image • In order to combat these prices consumers have reduced the size of their products but kept the same price – which is unpopular with consumers.
  16. 16. TARGET MARKET • Selection and justification of our target market
  17. 17. TARGET MARKET Target market profile: The consumer: • Our product is aimed at children aged 2-13 of both genders The buyer: • Children obviously don’t have purchasing power and therefore we target the adults to make the purchase on their behalf • Lifestyle = Parents who are looking to spend quality time with their children through activities such as baking cakes. Parents who are active on parenting networks and forums. • Media Habits = Parents who are active on social networks and modern media platforms such as YouTube to keep up with our promotions • Purchasing Habits = Parents who shop with their children and give the incentive of buying our chocolate to control their behaviour. Impulsive buyers. • Parents who want to play with their children in creative ways rather than just sitting in front of the TV. We want parents who are almost ‘big kids’ themselves but have enough responsibility to care about their health and safety.
  18. 18. TARGET MARKET Segmentation justification: Geographic: • UK is the 7th highest consumer of chocolate in the world • 660,900 tonnes are consumed a year • An average of 11kg per person per year • 3 bars a week • UK chocolate industry worth £3.96 billion (Mintel 2012) Demographic: • Population in the UK is 63 million and growing • Primary consumer of chocolate are the 25-54 year olds who consume 41.2% of the chocolate in the UK market. This age range is the most likely to have children to buy and share chocolate with
  19. 19. POSITIONING • The positioning of our product in comparison to our competition.
  20. 20. POSITIONING How are we differentiating? • Focus on building a community with our customers and involving them heavily in the brand. Constantly talking to customers at every possibility • Focus on innovation and creativity. • Using social and modern media to constantly express our innocent and innovative image such as creating animated cartoons of our characters and distributing it via websites such as YouTube and Facebook. • We don’t want consumers to just view our brand as chocolate sellers. We want to be seen as a caring, innocent and creative community to try and create loyalty and strong relationships Positioning maps:
  21. 21. MARKETING MIX • Elements of the marketing mix
  22. 22. MARKETING MIX Distribution channels: • Our main distribution channel will be through retailers. In particular supermarkets Producer Retailer Consumer • Sales of confectionary are dominated by the supermarkets. The products are best tailored to this environment such as the multipack formats • The total weekly expenditure of confectionary in large supermarkets is £34million and accounts for 61.8% of total expenditure compared to other outlets UK supermarket retailers by share of the total market (%) 2010 Tesco 30.7 ASDA 17 Sainsbury’s 16.4 Morrison's 12 Waitrose 4.1 Aldi 3.0 Lidl 2.4 Iceland 1.7 Somerfield 1.0 Others 11.7 • The top four supermarkets account for 76.1% of the market • We should look to sell through Tesco as they are the market leader and therefore would maximise our sales potential
  23. 23. MARKETING MIX Pricing • • • • • We would like to charge 59p Not the cheapest chocolate on the market so will create a small hint of exclusivity Cheap enough to not put off parents from a purchase Psychological pricing – slightly undercutting 60p sounds cheaper More price discretion due to general inelasticity of the chocolate market – which is a bonus because it is likely we will have to increase price in future due to rising input prices • From a marketing perspective our objective for setting this price is to improve our market share and build a reputation early in our life cycle by enticing customers in • General unit cost = 10p plus toy around 6p will mean around a 43p profit per unit • Possibility of multi-pack with 5 bags of chocolate for a price of £2.59. Saving the customer 50p. And gives us a profit of £2.15
  24. 24. MARKETING MIX Brand • • • • • ‘Chocomonsters’ - An army of Chocomonsters Bags of chocolate with fun sized monster shaped chocolate Inside packet comes a free monster toy from the Chocomonsters universe Start with 15 different monsters to collect and expand from there Everything is monster themed – Fun animations posted on social media and our website for kids to watch, interactive games for kids to play involving monsters • First competiton posted on our Twitter involves kids sending in their drawings of monsters and we can turn them into characters. This will spread word of mouth quickly and establish our brand with parents and shows our creative and interactive sides early • Heavily involved with community. Animations can be fan made or by students this will bring down costs but create a sense of community • Each packet will contain fun facts about different monsters from the Chocomonster universe
  25. 25. OBJECTIVE'S • Break-even by December 2014 • 2% market share value by December 2015 • 1,500 Twitter followers by December 2014 Evaluation mechanisms: • Measure finances to see if we have broke even by December 2014 • Market share evaluation to see if we have a 2% market share in value by December 2014 • Measure the Twitter follower count as a way of measuring brand awareness and loyalty • Customer feedback to see if they perceive the brand in the way we have outlined in the presentation
  26. 26. BUDGET Marketing budget 2014 Advertising: Website £20,000 Social media £45,000 Online advertising £100,000 TV advertising £200,000 Trade shows £50,000 In-store promotion £50,000 Print advertising £100,000 Market research: Customer feedback £25,000 Primary research £50,000 Secondary research £50,000 Administration: Office £100,000 Telephone £5,000 Necessities £3,000 Personnel Wages £300,000 Travel £25,000