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Pages 5 (1255 words)
Two products – chocolates and energy drinks are to be introduced in the UK market and the marketing strategy for these two products is presented below. Chocolates Background The UK confectionery market is poised for growth following change in the characteristics that can be associated with a highly competitive market.
All the major competitors in UK have introduced fair-trade chocolates with Cadbury’s selling 40m Fairtrade Dairy Milk bars (Wood, 2009). Sainsbury has also converted all own-label roast and ground-coffee to fair-trade as The FairTrade Foundation (2010) considers it important to create opportunities for workers and producers that received setback. SWOT Strengths Confectionery sector is recession-proof Consumers engage in impulse buying because of targeted advertisements Chocolates considered an affordable, harmless indulgence (Adwan, 2003). Weakness Rising obesity Rising prices Consolidation in the market Opportunity Sugar-free confectionery fetches better margin for retailers This can be introduced for mainstream buyers and not just for the diabetics or the obese population. Preference for fair-trade products is high as main competitors switching to fair-trade confectionery (The Fairtrade Foundation 2010). Fair-trade public procurement has strong public support in UK. Threats High cocoa price exerts pressure on profit margins Sugar-free products more expensive than standard products but gaining popularity Three main competitors with rising market share Analysis The opportunities and threats suggest that market for sugar-free confectionery is growing because of rising obesity. The company should focus on fair-trade and people would be willing to pay a premium price for it. ...
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