Essay details:

  • Subject area(s): Marketing
  • Price: Free download
  • Published on: 14th September 2019
  • File format: Text
  • Number of pages: 2

Text preview of this essay:

This page is a preview - download the full version of this essay above.

Executive summary:

Chocolate confectionery market needs a new and innovative perspective.nWith all the on going media focus on health concerns about excessive sugar consumption, potential global cocoa shortage, political debates regarding junk food advertising restrictions, there should have been an idea so revolutionary that it could not be refused. With the new chocolate bar KALYPSO, the world must come to a change. The new product came to change the market for good through the two varieties of dark and sugar free chocolate bars, environmental friendly and recycling packaging, and with an elegant and heavenly taste; made out of only natural ingredients. Thus having most of the criteria needed, there would not be any other produt on the market that could face this product.

Part A.

For the past couple of years, the volume of chocolate sales had remained static. Even though part of the consumers had limited their amount of chocolate eaten, the resilience of the chocolate confectionery market is based on two most noticeable features, being affordable and permissive treat. Value sales increased by 2% to£4,2 billion, in some measure is by cause of increases, but also to trading up to more premium chocolate.

For the past years, there have been some concerns about chocolate relating to sugar through media, by cause that low sugar had turned to be more important that low fat in terms of healthy food.

Due to the high demand towards a more balanced diet regarding chocolate as a treat, it had some impact over chocolate sales because of people being concerned with the sugar intake and health problems associated with being overweight.

Over the next five years, it has been argued that the elder population, ages over 55, will increase by 10%, meaning 1.9 million more people. This statistics give out a hard task for the chocolate confectionery market; because just 24% of the elderly population eat chocolate 4 or more times a wee, in comparison with 40% of the 16-14-year-olds.

The leading brand in the chocolate confectionery market is Cadbury Dairy Milk with a 16%, closely followed by Galaxy with an 8%, right around the corner are Maltersers and Kitkat with a 4%, and last but not least Twirl, M&M's, Snickers Whispa and the Mars Bar with a 3%, and other brands with a 37%.

The sales  for Cadbury Diary Milk had been visibly standing out to the other Mondelēz brands. Brands such as M&M's and Kinder were also observed to have a strong growing. With the most trusted reputation, and being the  most appealing and negative brand, Cadbury Diary Milk had been seen as the most successful brand with a long history in the market. along with it comes Galaxy, even though being a bit behind, their strong feature is their positioning and its' reputation of being indulgent.

The statistics show that 9 out of 10 people tend to eat confectionery chocolate, and 54% of people do so more than once a week. Even with the growing heath concerned about sugar, the frequency of eating chocolate has not virtually changed much since 2015. Younger consumers and women are more prone to eating chocolate more frequently than other groups.

Six out of ten people have state that they only buy chocolate to treat oneself, but also to pos ones' mood (24%) or to give obtain an energy boost (16%). Furthermore, the following most common reason to buying chocolate is closely linked to having a good time, and that is for an evening at home, sharing with the family (35%). when speaking of chocolate as a gift, people have the tendency to spend more money, in comparison when buying for themselves. On the other had, the only facto that would be taken into consideration when spending more money for chocolate when buying fore oneself, would be new, exciting and unusual flavours.

Although people are concerned about sugar regarding health problems, it has been argued that small amounts of chocolate daily are more than welcomed then talking about a balanced diet. Thus, being considered the healthiest chocolate, dark chocolate had shown boosted sales.

The micro-environment



Due to the habitually high demand, confectionery chocolate became extremely popular

The wide range of available products, formats and price points makes the market more appealing to the customer

Brand awareness is extremely well developed intros market, with many leading brands benefiting form brand loyalty

The four main consumption occasions are in the mid-morning, after lunch, mid-afternoon, and after dinner

Other for being a treat, chocolate has the use of baking at home

Along the year, there are many occasions in which customers take into consideration purchasing confectionery chocolate, such as Christman, Easter and so on


The UK confectionery market is a rough patch even between sectors and subsectors, but also between snack foods, biscuits, cakes, and ice creams

As a consequence to competitiveness, the main reason for reduced profitability are huge investments into new product development, in-store promotions, and also marketing, in order to remain competitive

Even though global cocoa and sugar prices had been expansive for the past years, manufactures are still depending on them

New product developments are not only expensive, but they are also not giving any guarantees or assurance that the product will be successful

Due to health concerns about consumption of sugar, volume sales have been repressed in the recent days, but there had been no change in the demand for confectionery


The new innovation for this market are the sharing bags and they are starting grow popularity

New favorable circumstances  are starting to appear regarding UK's confectionery exports overseas

Due to the limited editions, the seasonal themed products seem more appealing to the customers, thus having the tendency to purchase more in that period of time

There is also rise in the new product development due to the high demand of fun and exciting flavoured confectionery

There is also a high request for confectionery that is aimed to be made out of natural ingredients

In the recent days, people had been purchasing dark chocolate rather than other forms of confectionery chocolate because of its' healthy reputation


UK had raised health concerns about chocolate confectionery, threatening the demand

There is a global deficiency in quantity of cocoa as a result of high demand and consumption around the world

Due to globalization, the ambition of British confectionery manufacturers is diminished

As a result of the obesity crisis, marketing restrictions could become rigorously stringent

The macro-environment



Thus given the fact that half of the Britons are overweight or obese, in terms of body mass index, it is one of the government concern, a priority to improve public health. One means to achieving this goal is to introduce a sugar tax, but such an approach seems unlikely. Moreover, another mean would be banning the junk food advertising to children to reduce obesity among children.


Due to being a very competitive marketplace, two trends had flourished: the need of manufacturers to exploit globalization when at the same time maintaining domestic dominance. In 2005, there was a long disputed concern about child slavery in the Ivory Coast, and apparently many firms had appeared too be complies to it, including Nestlé, ADM and Cargill.


The primordial social concern is the obesity in the UK, affecting the confectionery market since is believed to be just another part of the wider junk food category, even the root cause of the problem. With the help of social media, more and more people became concerned about the health issues regarding sugar, and many costumers replaced saturated fats as the primary health problem in 2014. The main goal was to raise awareness about sugar consumption, the cause of obesity, diabetes, and tooth decay, among with many other health issues.


From this point of view, there are two main aspects that were taken into consideration: the power of manufacturers and technology. While manufacturers of confectionery machinery use the help of the technology to improve the efficiency and performance. Technology had been taking steps forward on almost every aspect, such as packaging, coffee machines, pathogen testing systems, and filling patterns of heat-resistant chocolate.

Part B.

The Marketing Strategy

The consumer segmentation is divided into three main categories, each of them containing other subcategories. From a Behavioural point of view, the benefits are healthier treats, te purchase occasion would be a special occasion or a gift, the purchase behaviours are innovators and also brand loyalty, the usage is light, due to its' limited edition, media behaviour. From a Psychographic point of view, it classed as a sophisticated treat in terms of lifestyle, and its' personality is extrovert. The Profile of the product aimed to ages from 25 to 44, both male and female, young singles, fitting in the skilled working class with a high income, and geographically speaking, aimed the urban people of E.U.

The marketing mix strategy will focus on the existing customers segment, but also try to attract new ones. It will also encourage healthy eating, recycling. The new chocolate will be named KALYPSO and will be made out of natural ingredients, pure cocoa, and one will be sugar free and one will be dark. I made my decisions based on the SWOT Analysis, that shown that a great opportunity would be inventing a chocolate made out of natural ingredients. Thus, one of the main weaknesses in chocolate confectionary is regarding the health issues, this product will be one sugar free and one dark. Furthermore, this product will stand out among others due to its' packaging design: the colour will be a bright purple, meaning that is meant to keep the tradition, but also attract the eye of the customer; and it will also be recycling, meaning socially responsible. This product will be seasonal, it will only be able to purchase on special occasions such as: Academy Awards, Billboards, VMA's, Grammy's, Music Media Awards, and so on.

From a branding point of view, the core benefit will be the high demand for a treat that would intrigue the customers by its' revolutionary taste, followed by the actual product, being high quality, with novelty features, and stylish packaging. Furthermore, the augmented product, the additional bundle of benefits that are added to the product are: the guarantee that the product will have a huge impact through the people aged between 25 and 44 due to all the features that come with it.

Unusually for the market, the population aged between 15-24 are projected to be finished in number by almost 400,000 by following years. As a consequence, the main target would be the 25-44-years-olds, as they are believed to grow in number. It's believed that the population of ages 0-14 to have a subsequent increase of 734,000 over the next 5 years, that the chocolate confectionery could benefit from.

There are two types of chocolate that have been standing out, the chocolate bars and the books of chocolate, which are eaten by 2 out of 3 people who eat chocolate. Blocks were the only ones out of the confectionery chocolate market which had increased infiltration between 2015 and 2016. On the other hand, opposed to all other types of chocolate, women are more prone to eating chocolate bars, with a 4% more than men.

When talking about targeting and positioning, the main aim ages that this product has are between 25-44.Due to the fact that Cadbury had the leading product of the chocolate confectionery market, the Diary Milk, with a leading percent of 16%, followed by Galaxy with a visible lower percent of 8%, the new product would e a great success given the fact that it gives the consumer the  opportunity to choose between the dark chocolate and the sugar free one. Furthermore, the new product would directly compete with the other products that are sugar free, but will stand out through its' luxurious packaging, and through the fact that it is a limited edition, only found in some reasons of the year. The product will be positioned in the mix of Luxury and Quality, due to its' fine and natural ingredients, healthy and recycling concernes, but also to its' revolutionary appearance and taste.

The price will be proportional with what the product has to offer, even though the rest of the chocolate that Cadbury sales are low priced, the new product will be a bit pricy due to its' positioning in the chocolate confectionery market, being a luxury treat.

Advertising is an important aspect in a products' life, meaning it has to encourage the customers to purchase by going trough the stages of awareness, interest, desire and action. Through marketing strategy and positioning, was aimed some part of the population that has to be intrigued by the product. For that to happen, the product will be advertised through billboards, in-store and TV commercials, radio and also through social media. Social media plays an important role in advertising, as so it will be advertised by public figures that have huge impact on the people browsing the internet. The main public figure will be David Beckham because he has an impact on the people of ages 25-44, males and females, and because of hes' success through out his years in the spotlight.

The things that were shown to attract the eye of the in-store customer when purchasing chocolate were the new flavours, 46%, and the novelty products. Removing chocolate confectionery from the store check-outs had some impact on impulse sales, having to find other ways of advertising, such as prominent in-store displays in other parts of the stores. Eventhough most buyers see chocolate as a treat, it is highly influenced by price, 56% of buyers purchase chocolate at a reduced price after a seasonal event, and other 37% from discounts.

When talking about promotion, since the chocolate will be a luxurious product, there will be prize promotions, meaning each and every time the season comes, depending on the upcoming event, there will be 10 tickets hidden in 10 chocolate bars for 10 lucky people to benefit of them. Additionally, the confectionery chocolate market exists as follows: 41.7% in convenience stores, 22.1% in supermarkets/ hypermarkets, 12% in drugstores, 7% in specialised retailers and so on. Based on this percentages, this product will only be sold only in malls, drugstores, most popular convenience stores, duty frees.

The five main forces driving competition are the buyers power, degree of loyalty, new entrants, substitutes and supplier power. The buyer power plays an important role, due to the presence of differentiation and brand loyalty among customers, retailers need to respond to the customers demand. The buyers power is perceived as moderate as a result of the diversified retailers in terms of the products they stock, not being reliant of the sales of chocolate confectionery products.On the other hand, the main ingredients that the chocolate confectionery market needs are sugar, cocoa beans, and other derivates such as cocoa butter, cocoa liquour, and cocoa powder. Resulting that suppliers are cocoa farmers, producers of various other raw ingredients and companies providing raw materials for packaging and not only. Companies that buy the raw products do not have many control over prices, they use other techniques to reduce the impact of price in their own margins. Thus, the supplier power is moderate.

The progress will be monotorised through social media such as Facebook, Twitter, Instagram and so on. Furthermore, another way of tracking the chocolates' rise and ranking is through surveys done online and in-store. The reward of marketing planning, the use of marketing metrics, are for profitability, the new product will be 80% successful and profitable, will sale 91% of its' stocks, will rise 78% awareness of the environment, share of 73%, customer satisfaction of 82% and distribution of 69%.

...(download the rest of the essay above)

About this essay:

This essay was submitted to us by a student in order to help you with your studies.

If you use part of this page in your own work, you need to provide a citation, as follows:

Essay Sauce, . Available from:< > [Accessed 30.05.20].