Marketing strategies of the mass-market chocolate industry Essay Example
Marketing strategies of the mass-market chocolate industry Essay Example

Marketing strategies of the mass-market chocolate industry Essay Example

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  • Pages: 5 (1334 words)
  • Published: March 19, 2018
  • Type: Case Study
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This report focuses on the detailed study of four brands: Catbird, Galaxy, Kit Kate, and Maltese. The UK mass-marker chocolate confectionery market is the largest in the European Union, and sales heavily rely on a strong marketing strategy. In this report, the segmentation, targeting, and positioning, consumer buyer behavior, promotion, pricing, product, and placement, social media strategies, and communication strategy of these four brands are investigated.

Moreover, this report provides critiques on the effectiveness of the marketing strategy for the four selected brands and offers recommendations on how they can further improve. Among the four brands studied, only Galaxy uses demographic segmentation by focusing on women. However, all four brands employ behavioral segmentation by targeting consumers looking for specific benefits from eating chocolate. Catbird targets creative individuals, Galaxy targets those seeking indulge

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nce, Kit Kate targets tired employees, and Maltese targets individuals in search of guilt-free chocolate.

Each brand positions itself differently: Catbird positions itself as a creative brand; Galaxy positions itself as a treat; Kit Kate positions itself as a break bar; and Maltese positions itself as a lighter way to enjoy chocolate. As an impulse purchase, the recognition of the need for chocolate is typically stimulated upon seeing the packaging, and information search is usually quick or omitted altogether. When consumers evaluate alternatives, positioning and brand resonance play a significant role.

Finally, the decision to purchase or not happens quickly. Catbird is the only brand that stays in touch with customers after they make a purchase by sharing recipes using Catbird products. All four brands use advertising, sales promotion, sponsorship, and social media to increase brand awareness. However, none of the promotional material includes

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pricing information because retail outlets determine their own prices. Mass-market chocolate bars are generally priced similarly and can be found near checkouts at supermarkets and off-license stores nationwide. All four brands engage with consumers through social networks, except for Galaxy and Maltese, which do not have Twitter accounts. Each brand uses social networks to reinforce their positioning strategy. Catbird uses it to promote creativity and audience participation, Galaxy uses it to remind women, and Maltese uses it to celebrate its 75th birthday. In conclusion, this report recommends that Catbird should develop a clear branding message since its advertisements are currently open to interpretation. Galaxy should continue to stay connected with customers post-purchase by providing recipes for irresistible chocolate desserts. Kit Kate should maintain a strong focus on all communication materials, and Maltese should explicitly communicate its original message of offering a lighter way to enjoy chocolate.The market value for this type of product increased by 6% in 2011, with a 1% growth in sales volume, indicating that more mass-market chocolate confections were purchased despite higher prices. Compared to other treats such as crisps and biscuits, chocolate confections have a competitive advantage as they are inexpensive, indulgent, and easy to carry. The focus of this report is on the mass-market chocolate confection sector, which is known for its effective advertisements and slogans. The report aims to investigate four brands in the UK market: Kit Kat (owned by Nestle), Cadbury (Kraft Foods), Galaxy, and Maltesers (both owned by Mars). It explores how each brand utilizes marketing tools and their impact on consumers, while also comparing the similarities and differences in marketing strategies within the industry. Additionally, the

report provides critiques and recommendations on relevant areas. The examination of promotional materials includes social media content, archived TV ads from Youth, outdoor advertisements, and packaging samples, with each brand's chosen media source reflecting their strategy.(See Appendices) This section discusses social media activity, television adverts, and outdoor adverts. On Page 5 of 34, the topic of segmentation, targeting, and positioning is addressed. In the mass-market chocolate industry, behavioral segmentation is the most common among the four types (Geographic, Demographic, Behavioral, and Cryptographic). Galaxy is the only brand identified in this report that explicitly uses demographic segmentation by targeting women. Catbird, Galaxy, Kit Kat, and Maltese primarily segment consumers based on the benefits they seek from eating chocolate, utilizing behavioral segmentation. Catbird specifically focuses on customer behaviors when purchasing pampered foods and does not find demographic segmentation necessary due to product variety and affordability. Catbird further categorizes its consumers into three types: take-home, on-the-go, and impulse consumers. Galaxy is interested in indulgence as a behavior and categorizes chocolate eaters as eat-to-indulge or eat-when-hungry. Maltese targets consumers who enjoy having fun with chocolate based on their advertisements.The TV commercials for Maltese effectively convey the brand's personality and generate interest in the product. The commercials showcase the enjoyment of Maltese with friends or alone, in various settings, and promise fun in every situation.

In the mass-market chocolate confection industry, there is an opportunity for differentiation among different brands. Catbird, Galaxy, Kit Kate, and Maltese each target a distinct market segment. Catbird appeals to creative individuals, Galaxy focuses exclusively on women, Kit Kate targets the working population, and Maltese is geared towards the "fun-loving" population.

To cater to the

different behaviors of indulging food buyers, Catbird offers their products in two sizes - block-sized bars and bite-sized bars. They also introduce interesting variations of their Catbird Dairy Milk line, such as Catbird Bliss, Crunchier, Wisps, and Double Decker.

Galaxy specifically targets women who seek little moments of pleasure. This can be seen in their advertisements, including the one described in Appendix 2.This advertisement showcases two middle-aged women participating in a Galaxy targeting strategy. Galaxy has formed partnerships with the Sex and the City movies, Taskmaster, and cinemas throughout England. Kit Kat targets the working population who always need a break. Their commercials feature a variety of employees, both in professional environments and as manual laborers, all with the consistent message of taking a break with Kit Kat.

Catbird positions itself as a creative brand appealing to adults by reminding them of their inner child. They present their advertisements in a storytelling manner to attract customers of all ages, though they may not be as recognized as their competitors like Kit Kat. Catbird has also aligned itself with patriotism for Great Britain during the London 2012 Olympics through various initiatives encouraging support for the nation's athletes (see Appendix 1).

Caduceus successfully catches public attention with its campaign, leading to increased sales of their products. Galaxy positions itself as a pleasurable treat, aiming to evoke positive associations when women think of their brand.Their current promotion, which offers customers a chance to win '1 million moments to treat yourself, reinforces their positioning strategy. In addition to a trip to Paris, customers can win a shopping experience, book vouchers, and more (Appendix 2.1). Kit Kate has successfully positioned itself in

the minds of consumers. They engage with fans through game polls, promotional videos, and announcing winning ticket numbers. Other brands like Maltese, Catbird, and Galaxy Bar also effectively use these tactics to inform the market about the benefits of their new products and where they can be purchased. Social media activities generate interest in the product and encourage future purchases (Solomon M, Marshall G, & Stuart E, 2008:413). Catbird reminds fans of their brand and encourages repeat purchases through daily tweets and status updates on Twitter and Backbone (Appendix 1.2). By developing relationships with their fans/customers, brands reduce the risk of losing them to competitors (Solomon M, Marshall G, & Stuart E, 2008:409). Through two-way communication on social media platforms, brands can listen to their customers' feedback and improve future marketing and communication initiatives.The active use of two-way communication by Catbird allows customers to engage with the brand and develop a deeper connection, thereby fostering brand loyalty. Social media objectives for various brands include informing people about their activities and encouraging participation. Galaxy aims to remind consumers about the irresistible nature of chocolate and their desire for a treat, while Kit Kat seeks to remind people to take a break. Maltese celebrates its 75th birthday. The communication strategy emphasizes the importance of focusing on the customer and providing them with information that becomes a part of their lives rather than a distraction. (Solomon M, Marshall G, & Stuart E, 2008:409)

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