Keywords: chocolate industry pestle, chocolate industry competition
"Marketing is the process where how to write a good persuasive essay: learn in a couple ofminutes customer needs are anticipated and determined. Ways are found of meeting those wants at a price that consumers are ready to pay and that allows the business to create a profit"
For launching a new product we use PESTLE or SWOT strategies and let us Consider that we are launching a new chocolate product .
Factors that should be consider while launching a new product i.e
Political, Economic, Sociological, Technological, Legal and Environmental and the inquiries we should take under Consideration
What are the key political factors more likely to affect the chocolate industry?
What are the important monetary factors of chocolate industry?
What are the cultural facet of chocolate industry?
What are the technologies ?
What current and impending legislation may affect the industry?
What will be the environmental considerations?
Situational Research of chocolate sector and market tactics
To launch a new chocolate product we must analyze the function of the advertising function in a organization, we will follow through what may have happened in the advertising of a major latest chocolate bar and the main economical , political and technical factors that affects the chocolate industries.
1. Assessing the market
The market for chocolate bars is very competitive. There are a tiny number of large organizations in the industry – Mars, Cadbury, Nestlé and Suchard being the most well known. Lots of the brands available in the market have been in existence for a long time and have a higher amount of company loyalty. Openings for services therefore, are limited. There are lots of examples of products which may have been launched and have been withdrawn because they cannot sustain long-term sales achievement. Can you keep in mind the Prize Bar, Aztec and Junglies?
The market for several types of chocolate bar has changed in recent years. The development of the so – called ‘count-brand bar’ (shaped like Mars bars) became popular as persons ate chocolate on the run as opposed to seated in a room with a traditional bar of chocolate. Businesses had to react to these changes. Row tree (today owned by Nestlé) improved the condition of their Aero bar and Cadbury brought out a rival bar referred to as Wispa. Both of these were designed to exploit this growing market.
The market is still changing but using chocolate as a snack instead of sharing a bar between a family. Providing a chocolate bar as a present is still a growing part of that market.
The UK chocolate market is the biggest in every European market. People in britain consume more chocolate than any other Region in Europe.
"Mintel said the UK consumed 3.5 billion pounds ($5.6 billion) worth of chocolate in 2008, a lot more than any other European region, with only Germany, which has a lot more than 20 million more people, coming close at 3.4 billion pounds"
Some of the famous brands are
Cadbury Schweppes (http://www.cadburyschweppes.com/EN/Brands/)
In December 2009,the marketplace research company, revealed Cadbury’s chunk of the chocolate industry by value slipped 1.7 % to 29.8 % last month, the very first time that it provides fallen below 30 per cent all year. Market talk about of Mars, its major rival, slipped 0.6 % in the period.
Kraft, making Milka and Toblerone, improved its market share by 0.7 % to 5 %, while Nestlé elevated its share 1.2 per cent to 20.4 % of the market..
The market research firm approximated the British chocolate marketplace would be worthy of 4.4 billion pounds by 2013
2. Determining a gap in the market
Once the market has been analyzed, it might become clear that there is a gap on the market. This implies that, there is an identifiable customer need that’s not currently being met by a preexisting product. It could also be in which a rival may have a presence and where in fact the company concerned believes it could give a competitive alternative.
Market research, which in many cases is on-going, will have given the business enterprise some idea of the type of the market and the extent of the possible market. It might be that further research can be used to target particular market segments that the business enterprise feels will be the ones most likely to purchase the product and what it really is they want from the product. A lot of this will be utilized to inform the marketing mix.
3. Developing the product
Quite quite often businesses in this particular industry want to develop a ‘brand personality’. What this means is that they will want customers to associate something certain with the product. KitKat for example, is connected with a ‘break’, which makes it an ideal accompaniment to a glass of coffee or tea. The personality of the merchandise will maintain line with the market research and analysis carried out. The ingredients, the appearance of the product, its texture when eaten, its name and product packaging, and how it’ll be promoted will all end up being key factors that’ll be informed by the expansion of the brand individuality.
A very good example of this process is the development of Yorkie. Yorkie originated as a contribution to the count-line bar industry. It aimed to use the concept of a chunky chocolate bar however in a different format to allow it to be consumed on the go. The main element element to emphasise was the chunky nature of the chocolate,also to do that Rowntree developed its early marketing around the length of time it would last and it being an ideal accompaniment for extended journeys. The trucker photo stuck and offered the bar a ‘masculine’ individuality. In recent years, it has been exploited with a deliberate campaign suggesting that it’s so chunky it really is ‘not for girls for!
4. Product testing
Once these stages have died through, the product will probably need to be tested. People could be given choices of diverse names or different packaging prototypes to check out what client reaction are.
It could be that this type of problem provides been resolved at an earlier stage, in which particular case more substantial user testing could be used by virtue of a test-market. This can be a selected location of the united states where there’s a profile of users that is representative of the united states all together. Using test market segments gives relatively accurate opinions but can be much cheaper than a national launch, which might not start to see the product doing as well as anticipated.
Remember that to feed market, the capital investment has to be there to back again it up. If the test industry showed that the product was going to be very popular, the business would have to make sure that adequate capacity was available just before a national launch. You’ll certainly not want to have a product launched and persons not be capable of geting your hands on it!
Image: User testing is an important aspect of marketing strategy – it gives an excellent notion of the likely market response without incurring the expenses of a national release.
Media and marketing implementation
Most often than not but, It is very difficult to convince a person to buy a specific product if they don’t realize the product. We need to make a technique for marketing new merchandise in the market so that we can achieve our target. Without a bullet proof intend to attract customers, your time and efforts will most likely be inefficient. we ought to make sure that Businesses should focus what a customer desires and what he is looking in the product .so that we can make a long term successful customer relationship . This ensures that you desire a plane to learn customer more closely in a flexible method in order that whenever need we are able to change our product according to our customer’s perceptions and demand." Alternatively, your marketing scheme ought to be focused on identifying and interacting the great things about your business offers to its target market". You’ll then need to monitor and keep maintaining its effectiveness.
Advertising new products
Market part can be an essential factor for an effective online marketing strategy and if we’re able to recognized different market areas that allows a business to make fruitful and more efficient decisions in regards to advertising new quality items. This can be a lock pick and choose to understanding the different kind of needs of different types of customers. Once you have divide your market in various categorizes, you will then manage to formulate marketing activities which will make sure your targeted audience to learn about the products or services you are offering and why they need them within their lives. We are able to achieved this through the various kind of advertising, since consumer known’s what they need exactly want and encourage them,. You must have going to your targeted audience to feel just like that they need to need to acquire whatever it really is you are offering is the better product on the market. So that they buy our item and increase our sales
How to launch latest product and their strategies
Gigantic changes are going on on the planet and marketing approaches are no exemptions compared to that. Businesses should think beyond your box. Observe who is doing better and try to imitate them or even better, outwit them. It’ll greatly benefit your firm to do market research to be able to determine your potential industry and make adjustments to your current marketing strategy. This is mainly done to attract uninterested consumers to at least offer your business a try. Your new product start should make enough noises to make certain that it will stay in customer’s recollections and entice them to really try it. With the various media available today, you can increase your visibility by not really limiting your business to 1 media. You can turn your company round by doing a major manufacturer makeover. If there are not a lot of folks who are choosing your product or service,
then perhaps it’s because they literally usually do not see you. This is not a time when companies are permitted to sober down on marketing techniques, just since the economy is going down. After the economy gets back on track chances are, people won’t remember those that were not visible on the market during this time. You have to make your business children name so persons will remember you much time after this global recession has ended.
We can use Marketing mix (4p’s)strategy to launch our final product
Marketing Blend (4p’s ) Introduction
The marketing mix concepts are controllable variables that have to be properly managed and must meet the need of the described target group. All factors of the blend are connected and must support each other
Pricing mix Strategy
It is one of the most important the main marketing mix strategies. Prices is a mix which generates a earnings for an organization. The rest of the 3p’s strategies are the "output" for the business . We realize that it costs to produce and design something, promote a product and also to distribute it. Pricing is very complicated and must reflect" supply, demand relationship". Pricing a product too high or too low, could mean lack of sales for the organization. The following factors should be considered:
Objectives of the Company
Fixed and adjustable costs of the product
Target the group and their willingness to pay
Competition with leading organization
Proposed Positioning strategies
"An organization can adopt different types of pricing strategies. The pricing strategies derive from what g the target the organization has establish itself to archive
We can set a low price to your product to raise the market shares and revenue of the products is called penetrating pricing
When the business sets higher value of the product initally and drop down the price to make the product obtainable in the widerâ€¦â€¦â€¦â€¦..The targets is to skim earnings of market layer bye layer,this strategy is well-known within the games console industry
Competition Pricing . setting a price in comparison with competitions . a firm has three options, prices lower, prices the same or prices the higher
Product line pricing
Pricing different products within the same merchandise range at different price points. An example will be DVD recorders with cool features and different prices.The greater the features and the huge benefits obtained the greater the consumer will pay. The type of pricing discrimination assists the company in maximizing turnover and profits
The organization bundles a group of products at a reduced price , this pricing approach is favored by supermarkets
The vendor will consider the psychology of value and the positioning of price tag within the market place. The seller will therefore charge 99p rather than 1 pound or 199 $ instead of 200$
The cost set is large to reflect the exclusiveness of the merchandise . A good example of product using this strategy would be Harrods , first class airline services. Porsche etc
The company sells optional extras together with the product to maxmise within the car sidustry
The marketing mix consist of product, pricing, place and promotion strategies that a firm uses to greatly help them reach their objectives
The marketing min principels are controllable variable that have to be thoroughly managed and must meet up with the needs of the defined target group. All elements of the blend are connected and must support one another.
When a business introduces a product into a market,they need to ask themselves a number of questions:
Who is the product aimed at ?
What profit will they expect?
How do they intend to position the product within the market?
What differential benefit will the product offer over their competitors?
Philip Kotle suggested that a product ought to be viewed in three levels
Level 1:Core product . what’s the core profit your product offers?. Buyers who purchase a camera are buying more than just a surveillance camera they are purchasing memories.
Level 2: Actual production: all cameras capture recollections . the aim is to make sure that your potential buyers purchase your one particular. The strategy at this level www.testmyprep.com involves organizations branching , adding features and benefits to ensure that their merchandise offers a differential edge from their competitors
Level 3 : Argument item: What additional non-tangible benefits is it possible to offers?
Competition at the level is situated around after sales services, warranties, delivery . A retail departmental store that gives a free five time gurrantee on order of their tv set sets gives their clients the additional benefits of "reassurance " over five years if the purchase develop a fault.
Total production concept
When placing something within a market many elements and decision have to be taken into consideration. Included in these are:
Product- Will the designe be the feature for the business .
Product quality: Quality must consistent with other elements of the marketing mixture .A top quality product maybe reflected in the price
Branding: in principles of marketing , By Philip Kotler and gary Armstrong a company is defined as ‘ a name .term, sign symbol or a combination of the , that identifies the marketplace or seller of the product,
A brand must stick out and be recognizable, and really should help the company differentitate itself from its competitors
Product features: Additional features should increae the power offered to you r target market. The firm may decide to change additional for these further features.
The marketing mix ideas are controllable variables that have to be cautiously managed and must meet up with the needs of the described target group. All factors of the combine are linked and must support eachother.
Strategies of distribution ?
Two types of distribution strategies are available.
Indirect distribution includes distributing your product through the use of of an intermediary for example a manufacturing advertising to a wholesaler and to the retailer.
Direct distribution involves distributing direct from a manufacturing to the buyer. For example we are able to use direct selling like dell computers. To market the product right to its target customers will provide us more benefits. The advantage of immediate distribution is that it gives a manufacturing comprehensive control over their item.
Direct Distribution Indirect Distribution
Depending on the type of product being distributed there are three prevalent distribution strategies available
Intensive distribution: Used commonly to distribute reasonably priced or impulse purchase items For example Chocolates, carbonated drinks.
Exclusive Distribution: will involve limiting distribution to an individual outlet. The product is generally highly priced, and needs the intermediary to put much information in its sell.
A successful service or product means nothing unless the good thing about such a product or service can be communicated clearly to target market
An organization promotional combine can consist of:
Public relations: This involves developing positive romantic relationship with the business media public . The art of good general public relation in not only to acquire favorable publicity within the media , nonetheless it is also involves having the ability to handle successfully negative attention
Sales promotion : Frequently used to obtain a rise in sles short terms. Could involve using cash off coupons or special deals, loyality cards, coupons , Price promotions for instance BOGOF, point of product sales ,Packaging promotion or net coupons
Personal Selling: Someone to one selling is called personal selling. This may either be done face to face or we can use other press of direct selling like phone or internet
Direct Mail: is the sending of publicity materials to a known as person in a organization. The purpose of direct advertising is to creat one to one relationship with the business target market. Direct marketing will come in the sort of post, email, telephone calls and mail order. The business usually contracts a called person at the address.
Internet Marketing : The usage of the internet(www) for the advertising of product or companies. This may be the firm advertising and marketing via the utilization of banner ads, flash clips, or google kewords.
5. After all the analysis we can start our chocolate bar.
The significant sum of money is required to create a new product and this money can be larger to develop new merchandise, and the trust is that once we launched the product, the product will begin to start to get back a few of that investment.
At the first level, the product will need further expenditure to aid it and make sure that customers know about it. For chocolate bars, the trick is to get people trying it, but to follow that up by investing in it over and over and again for several years. Basically, repeat purchases are essential in a fast-moving consumer goods market.
During this early level, managing the cash flow of the merchandise will be important. This means balancing the returns of the merchandise from revenue with the on-heading costs of creation and marketing. If these get out of balance, the continuing future of the product will be referred to as into question and it might be worthwhile pulling the merchandise before any more costs happen to be incurred and ‘cutting your losses’.
To manage the launch and development of a product, therefore, marketing techniques will really arrive to the fore. It’ll be important to keep a close hyperlink with consumers to find out what they think and also to keep the brand within their horizon amongst your competition. Sometimes this might be something simple like getting the product displayed prominently in outlets so that impulse purchasers select your item or customers are attracted to your product at the trouble of rivals. This in turn will mean having sales persons with good human relationships with retailers.
Finally, maintaining income flows in the short term will also be dependant on the success of the advertising and promotional campaigns that are developed. Does the firm choose traditional TV ads along with advertising in journals and billboards or will it go for more guerrilla marketing ways to raise recognition? Should it own an online existence – many branded products have Web sites of their own, for example?