Launching a new product into a developed market A Cadbury Schweppes case study
Page 6: Product development
Cadbury set out two objectives for the development of Fuse:
to grow the market for chocolate confectionery
to increase Cadbury's share of the snacking sector.
The 'Fuse' concept was developed after market research identified the growth of snacking and a definite gap in the market for a more chocolatey snack. A number of ingredients were devised and tested following a survey which questioned consumers about their snacking habits and preferences.
A research and development team was then asked to develop a number of product recipes which addressed the needs expressed by consumers. Not all products successfully emerge from the product development phase.
Research and development involves combining various ingredients to develop potential new products. Considerable development time was spent on Fuse, carefully engineering the ingredients in order to deliver the right balance of chocolate, food elements and texture. More than 250 ingredients were tried and tested in various combinations before the recipe was finalised.
Any new product in the snacking sector must establish points of difference from existing products within the market - thus creating a unique selling proposition (USP) i.e. a product with unique appeal which is not shared by any of its competitors.
Whereas other confectionery snacking products focus primarily upon ingredients, with chocolate used only to coat the bar, the product developers decided to use Cadbury's chocolate to 'Fuse' together a number of popular snacking ingredients such as raisins, peanuts, crisp cereal and fudge pieces.
Cadbury Schweppes | Launching a new product into a developed market