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Scrummy Temptations Chocolate Marketing Analysis

By:   •  December 2, 2018  •  Case Study  •  661 Words (3 Pages)  •  10 Views

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Introduction

This paper will present an idea for a new brand of dark chocolate called Scrummy Temptations. The main point of differentiation for this product is the superior health benefits provided by 95% cocoa with innovative flavor induced by mint.

Consumer Trends

US consumers are looking for healthier and premium chocolate options as an acceptable indulgence for snack that can offer new twists on the familiar flavors. The Mintel 2018b & 2017b studies show that, of the number of US adults that buy chocolate as snack - 31% purchase exclusive dark chocolates, 30% are interested in the unique flavor, 24% prefer individually wrapped and15% prefer all natural ingredients. Consumer’s interest in the health benefits of dark chocolate, especially the high antioxidant content which protects against disease-causing agents and flavanols that helps in cancer prevention and improving heart health, has attracted the potential healthy eaters for good reasons. The Mintel 2018a survey shows that for individuals over 18 years, more than 40% are concerned about the high sugar intake from the chocolate and dark chocolate can be better appealing to them as a healthy alternative.

Industry Analysis

Chocolate confectionery in US is estimated to reach 21 billion US dollars in 2023 and this sales growth strongly suggests that the industry has a large and mature food category with nearly global penetration. Dark chocolate has become an important growth driver within confectionery as it is perceived to be better than milk chocolate (Passport, 2018d). The mere chocolate’s status as a desired indulgence with unique craving, gives it ample headroom for further growth as a premium product. Also the seasonal themes like Valentine’s and Halloween continue to drive sales growth rising up to 25% between 2012 and 2017 (Mintel 2018a), indicating that with the ageing population the consumers do not mind paying a little more to obtain superior quality chocolate.

Competitive Analysis

Hershey and Mars continue to hold the top two spots in chocolate confectionery in 2018 with 36.3% and 27.8% of the market share respectively. Ferrero’s recent addition of Nestlé’s US chocolate business has secured itself the third place with 5% of the market share and thereby pushing Lindt & Sprüngli to the next place with 3.6% of the market share (Passport 2018d). The most recent release of Twix dark chocolate in 2017 by Mars is an apt example for brands that are following the consumer demand for healthier and higher quality products. Apart from these dominating brands, a variety

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