Launching a new product into a developed market A Cadbury Schweppes case study
Page 2: Background to the confectionery market
Per capita confectionery consumption in the UK is among the highest in the world, exceeded only by Ireland and Denmark. Chocolate confectionery accounts for around 70of sales value in the UK market, with sales of sweets (sugar confectionery) at around 30 per cent.
Historically, the chocolate confectionery market has been characterised by the dominance of a number of well established brands, such as Cadbury's Dairy Milk, Mars Bar and Kit Kat. Although some brands enjoy a rich heritage, the key need in a busy and developed market sector is innovation, not just of existing brands but also in the development of completely new brands.
Brand-led innovation is a vital component in the growth of this market as it enables organisations to build competitive advantage. Over recent years, competitors in the chocolate market have made significant investments in new product development. Indeed, over 15 per cent of volume sales in the last ten years have been generated by new products. For Cadbury, this figure is even higher, at 20 per cent with new brand launches such as Wispa Gold and Time Out.
This case study focuses on the launch of Cadbury's Fuse. In the face of strong competition from well-known brands in an already busy market sector, the launch of Fuse represented a significant investment in a new brand.
Cadbury Schweppes | Launching a new product into a developed market