Skittles is a well-known, long-standing brand that has pleased consumers for generations. However, it is our contention that the name’s growth is stagnating, and needs to be revitalized based upon a core marketing goal: bring Skittles from simply a candy – something one consumes on a whim and forgets about – to a brand that engenders both value and feeling for consumers. With such a focus, the objective is to influence the seemingly minor consumer choice between confections in vending machines and on store shelves by linking a positive and pleasing emotion to the image of the brand. The intention is to achieve realistic, long-term financial goals, which will be controlled through measuring actual results against initial projections. The …show more content…
Further research on candy sales has yielded an adjusted 50-70% industry average range for retail profit margins, suggesting a manufacturer-to-distributor price of $0.18 to $0.30 per bag.3 The secret to profit is to make use of an intensive distribution, wherein Skittles are available in every store and vending machine possible. Since this is already the case, the only new distribution concerns that enter the marketing plan consist of seasonal products and Skittles vodka. Seasonal Skittles will be circulated through stores, as interchanging products in vending machines is significantly more difficult. However, “Absolut Rainbow” will rely on Absolut Vodka’s distribution network after product development. Distribution
Distribution for the brand is already exceptional; it is rare to see a vending machine or candy display without at least one variety of Skittles. The current method of distributing the product is a mixture of pull and push strategies. Retailers of candy demand Skittles because they know that consumers will purchase them often enough to move product and produce profit, while Wrigley actively offers the product to said retailers, using their already-present pull force to facilitate even wider distribution. The above analysis leads to the belief that changing the basic distribution strategy is unwise, yet
PetSmart is one of the largest specialty pet retailers of service and solutions for the lifetime of pets. More than 1008 stores are open in the United States and Canada that provide pet foods and supplies that are priced reasonably. PetSmart provides all types of services for pets including pet training, pet grooming, pet boarding and adoption services. In addition to providing impressive value PetSmart has the broadest, deepest product range in the industry, including thousands of products exclusive only to PetSmart. Every year PetSmart takes care of the grooming for hundreds of thousands of pets in what PetSmart calls its PetSmart Salons. These animals are groomed and pampered by stylist who have
Most buyers do not share the same palate, purchase the same quantities, or respond in the same manner to marketing efforts. Therefore, a concentrated Niche Marketing approach will work best to target our selected segment. Instead of pursuing a smaller share of a large market, Exotic Fruit Bars will target a large share of one focused niche. Through niche marketing, Exotic Fruit Bars can achieve strong market positioning by gathering thorough and detailed knowledge of the consumer needs in the niches it serves, and by acquiring a distinct reputation to differentiate Exotic Fruit Bars from it’s competitors.
Selective distribution, however, should never be abandoned because that is what keeps the price of their product from falling below a set value.
Retailers are highly selective as to the products they carry and consumers have many choices in the candy isle. We find that emphasizing high sell-through and attractive profit margins to the trade and high quality at an attractive value to the consumer is a winning strategy. Our diverse and highly recognizable brand portfolio remains popular across all trade channels. We have a range of offerings suitable for virtually every major consumer group. Our product line undergoes continual refinement in order to retain its appeal to ever-evolving preferences and life styles. The candy marketplace is highly competitive and we are vigilant in keeping our products contemporary even as they remain iconic. Halloween has long been our largest selling period with third quarter sales nearly double those of any other quarter in the year. We posted strong results in all major trade classes including grocery, mass merchandisers, warehouse clubs, dollar stores and drug chains. Especially popular at Halloween are our large bags of Child’s Play and other mixed candy assortments, which are offered in a variety of merchandising presentations. Our bagged goods have traditionally been limited to “lay down” format that is commonly found on retailer’s shelves. In addition to “lay down” bags, in 2009 we introduced a number of packs in a “vertical” format. These gusseted bags really
Consequently, this company can expand the fruit nectar production line to attract new consumers. The down-side to utilizing this structure is that the price at retail will be significantly higher than the other modes of distribution. However, since the target consumer is not sensitive to price and have high disposable incomes, this should not pose a systemic problem for this firm.
Cracker Jack is one of the most recognized consumer food brands in the United States. The brand possesses virtually universal awareness, holding steady at 97 percent among persons between the ages of 15 and 60. It also has an enviable 95 percent brand name awareness among heavy users of caramel popcorn. In spite of this gold mine, it is still regarded as traditional, stale, old fashioned, a product from a bygone era and less hip and less contemporary than its major rival, Crunch ‘n Munch. To add to this dilemma, the product diversification strategy that led to the development of several other versions such as Cracker Jack Fat Free, Butter Toffee, and Nutty Deluxe, in the hopes of
Hawaiian Punch is the top-selling fruit punch drink in the United States, contributing to the ninety-nine percent brand awareness among U.S. consumers. The product line in 2004 consisted of eleven flavors, with the original Fruit Juicy Red flavor being the most popular brand with a wide margin. A Hawaiian Punch light version of Fruit Juicy Red was recently introduced with sixty percent less sugar. At first, the traditional focus of Hawaiian Punch was centered towards children; however, the company now wants to refocus its positioning statement. Another brand consideration is the innovation of a new flavor into both finished goods and direct store delivery networks. The third concern is to address allowances relative to innovation in Hawaiian Punch finished goods and Direct Store Delivery (DSD) networks and to media advertising. Give the previous considerations; we have developed new marketing proposals for future marketing decisions.
According to Exhibit 5, from 1985-1989, Orange crushes’ market share decreased from 22% (1985) to 8% (1989), this data shows that prior to the entrance of Coca Cola’s Slice and Pepsi’s Minute Maid, Orange Crush had more of the market share which at the time, they were positioned toward groups between the ages of 13-40. Since 1985, Crush repositioned itself to target individuals between the ages of 12-17.
As a company with limited financial resources, Nantucket Nectars have been disadvantaged in their channels of distribution. They have not been able to distribute their products in the supermarket on a large scale. As can be seen from tables D and E, although most of the New Age beverages were sold in the supermarkets (55%), the proportion of Nantucket Nectars supermarket sales was only 1%. Nantucket Nectars distributed their products mainly through other channels like delis and educational institutions and is thus missing out on a large portion of the consumers pie This inevitably means that the company would be able to increase their revenue substantially if they were able to distribute their products in the
For supermarket and restaurant chains, the sale typically is made to the purchasing department/buying division of the retailer. These sales often involve a significant amount of field testing by the direct sales force, giving Tasteless a competitive advantage. Tasteless heavily advertises its products in trade magazines and attracts individual sales through advertising in media such as health care magazines. Individual clients include CEOs of Fortune 1000 companies, as well as individuals from coast-tocoast. Management’s objective is to establish Tasteless as the most recognized and respected tea brand in the U.S. market, eventually supplanting Lipton Tea as the market leader in tea brand recognition and tea sales in both the higher-end and lower-end tea markets. While Tasteless currently is experiencing some sharp growing pains, the good news is the growing interest in different types of non-traditional beverages, combined with increasingly health-conscious baby boomers and younger adults. These factors have tripled sales over the past five years ending December 31, 2008. At the same time, new local and regional competitors with a bevy of new products are offering fast delivery from local production centers and in some cases lower prices, challenging Tasteless for retail shelf space. Without this shelf space, especially in supermarkets, Tasteless’ tea products cannot be retailed on a volume basis. Tasteless has
To perform a break-even analysis, we have made the following assumptions: (a) retail margin= 60%, (b) the additional fixed cost of production per flavor, including advertising, bottling run and sundries, is $10 million and this is assumed to be an annual cost, except the bottling run, (c) a conservative estimate of percentage share of market figure is derived by multiplying the market segment percentages, as well as the age segment percentage for the category > 40 yrs. The percentage = 74% x 62% x 85% x 40% = 16%. We first determine the retail
There are a couple different themes that become very important when analyzing the Nestle Crunch Bar case. During the case, many research channels were used to find various themes and feelings residing within the consumer, conscious and subconscious. Between pages twelve and fourteen, multiple feelings/themes are presented. A couple of these have stuck out in comparison to the others, emotional comfort and enjoyment. These two themes seem to be present in the mind of the consumer through all of the consumer testing studies and also within the consumer throughout the entire purchasing experience.
Market volume for the confectionery industry is flat due to the changing trend in consumption driven by the changing age in distribution of the population. Growth is only driven by price increase at 10%. Distribution / availability and visibility are seen as important elements in influencing the sale due to the nature of its products, impulse items. In addition to this, the bargaining power of the retail trade has been shifting away from the suppliers (i.e. manufacturers like Adams) and is in favor of the
I’m an undergraduate student majoring in economy prepared the marketing plan for the purpose of learning and experience.
The last alternative would be to continue with what the company has already done and just produce many of the products. This choice would mean waiting in vain for another growth in the product’s life cycle. Ms. Jill could supply and distribute more, making the product very available. In case the other brands lack supplies, the consumers in grocer stores can conveniently choose the Snacks to Go products because of its availability.