British market for chocolate - Essay Example

British Market For Chocolate British s' Current and Desire Understanding of Chocolates The international as well as the national brand owners of chocolates in Britain are hugely concerned with tailoring their brands for local markets; and to meet the customer needs and desires. The customers in Britain market have a hard time describing their needs and desires regarding their choice and understanding for chocolate. They also assume certain limitations to exist within their choice. And there is just an imagination and desirable understanding to meet their needs by various chocolate brands. But various brands say that they've formulated the chocolate to suit the palate of British public which is more used to milk chocolates. And now the consumers are being awakened and even desire for what the dark chocolates can offer in terms of taste. A common straw poll suggests that, "Cadbury's has succeeded in its aim." Sara Jayne Stanes, Chairman of the Academy of Chocolate also agrees that overcoming the British palate of sweet and milk chocolate is a challenge and says, "98% of the population has grown up on chocolate confectionery with loads of sugar and not much cocoa." (1) Chocolate customers in Britain have started understanding of too much vegetable fat and sugar content in chocolates. Also various manufacturers in other European countries have always been scathing of British chocolates for containing too little cocoa and too much vegetable fat. And the consumption is also slowing down as health and diet concerns are impacting sales. According to a market analyst Datamonitor the customers now desire for low or "sugar free and low carbohydrate products" and now the pace of growth in chocolate consumption is slated down. And the major players in the field - "Cadbury Schweppes, Masterfoods and Nestle" have increasingly launched new low carbohydrate and sugar free products. (2) Customers of chocolate in Britain used to consider it as one of the "gulity pleasures". But now it is no more considered so. They have the understanding of buying the most ethical chocolates now without much harm to their health. "Green & Black" can be considered as one of the "most ethical" chocolates taken over by Cadbury. Others in the line and preferred ones today are Malagasy, Booja-Booja etc. (3) Now one of three British consumers (36%) want chocolates with health benefits and have understood the heath related issues connected to chocolate consumption. As per the European Consumer Survey conducted by Barry Callebaut - 'Predict Fast - Growing Demand for Healthy Chocolate', "38% consumers want chocolate with naturally reduced sugar". They also believe that chocolates can have positive psychological and physical influences on their well being - "6% of British consumers think it to be good for the memory", "23% think these boosts the morale and vitalises(20%) you", "15% think it is good for memory" and 7% consumers think that "it is good for the heart and the cardiovascular system." (4) Brand or Product Positioning of Chocolates in British Market In today's market, brands and their positioning has become the major issue. Brands are now increasingly thought to be powerful weapons to attract consumers and to make them loyal customers. Recently conducted survey by U.K's Centre for Brand Analysis (CBA) in July, 2008 proved a great flight of Green & Black brand and the drop down of many others as Mars which "fell out of the top 100, dropping 117 places to 175". Cadbury slid from 10th position to 19th whereas Lindt and Thornton's both rose up with Thornton's moving to 18th position. And it has been concluded by CBA that the brands which want to remain fighting in the field of chocolate should firmly possess the most valuable asset - the dark chocolate, but fairly sweet and of low sugar for British consumers. Mintel, the analyst stated that, "even though people are still cutting back on the amount of chocolate they eat, sales in the two years to 2007 saw no less than 10 percent increase in value." (5) Today although the chocolate aficionados are purchasing less but when they do make a choice they opt for more premium brands. The fair-trade brands are the only ones witnessing demands from consumers. 'Galaxy chocolates' was the first title sponsor of the British Book Awards in 2007 which clearly mirrors its popularity there. British are Eouope's one of the biggest chocolate consumers as they eat away about 10 kilos of chocolate annually followed by Germany and France consuming 8.3 and 5.8 kilos respectively. (6) International brands are working great here while the local as well as regional brands of chocolates are still keen to expand to national level. Also most of the chocolate companies are switching towards dark chocolates to be in trend of the times. Hershey's has done it, Woolworths has done it and now Cadbury's is doing it too. A brand manager for Deeply Dark of Cadbury's said that, "the recipe for Bournville Classic was the ideal dark chocolate 100 years ago and it still has a strong group who love the taste and have grown up with it." He further comments upon saving and up-positioning of brands that, "What we're doing is trying to keep the brand that the English public love but try to take it with us into the next century and the next revolution of dark chocolate." (7) The manufacturers of every field have become increasingly sophisticated in their branding strategies and have developed emotional identities for their products relating to customers' desires and meeting a premium price point. And the most dominant in the British chocolate market are Cadbury Schweppes, Masterfoods and Nestle. Whereas the market leaders of the chocolate bars taking about 44% of sales are Kit Kat, Twix and Mars Bar. The Nestle brand manager is of the view that the chocolate market has become commoditised and the manufacturers are fetching sales by discounted offers or other schemes. He says, "There's a need for a third choice, a quality mainstream." (8) Notes: (1) Reuben. Anthony. Business Reporter, BBC News. Monday. April 16, 2007. (2) Food and Drink Europe. Slow Down for Chocolate Sales in Number One EU Markey. January 3, 2005. (3) Vaughan. Adam. Guardian. UK. September28, 2007. (4) Highlights U.K. Newswire Europe Limited. 2008. (5) Lindsey. Partos. Ethical and Premium Brands Lock in Customer Awareness for Chocolate Makers. July 22, 2008. (6) Food Navigator. Cargill Bolsters EU Chocolate Position on New German Deal. June 2, 2005. (7) Reuben. Anthony. Business Reporter, BBC News. Monday. April 16, 2007. (8) Rosie Murray-West. Nestle takes a Swipe at British Chocolate. August 15, 2002. Sources: 1. Confectionery News. Lindsey. Partos. Ethical and Premium Brands Lock in Customer Awareness for Chocolate Makers. July 22, 2008. November 10, 2008. 2. Food Navigator. Cargill Bolsters EU Chocolate Position on New German Deal. June 2, 2005. November 10, 2008. 3. Mass-market Chocolate Goes Upmarket. Reuben. Anthony. Business Reporter, BBC News. Monday. April 16, 2007. November 10, 2008. 4. Food and Drink Europe. Slow Down for Chocolate Sales in Number One EU Markey. January 3, 2005. November 10, 2008. < http://www.foodanddrinkeurope.com/Consumer-Trends/Slow-down-for-chocolate-sales-in-number-one-EU-market> 5. Rosie Murray-West. Nestle takes a Swipe at British Chocolate. August 15, 2002. November 10, 2008. 6. Lindsey. Partos. Ethical and Premium Brands Lock in Customer Awareness for Chocolate Makers. July 22, 2008. November 10, 2008. 7. Highlights U.K. Newswire Europe Limited. 2008. Read More