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Strategic Marketing for The UK confectionery market - Term Paper Example
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. The UK confectionery market is poised for growth following change in the characteristics that can be associated with a highly competitive market…
Confectionery sector is recession-proof
Consumers engage in impulse buying because of targeted advertisements
Chocolates considered an affordable, harmless indulgence (Adwan, 2003).
Consolidation in the market
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.
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
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. Accordingly the marketing strategy should be as follows. ...