Testify is a new brand of chocolate that has its headquarters in the US and is to be launched in the UK market. This has been considered due to its good performance in the US. Since it was established in the US market, it has recorded an encouraging performance. Despite the other brands of chocolates that are available in the market, the test company is optimistic that it will have a competitive advantage over them.
Testify is a new brand of chocolate that has just been introduced in the market. It has been manufactured with the latest technology after carrying out lengthy market research. The aim of coming up with the product was to satisfy the current health needs as well as leisure activities of the users. The company purposed to come up with a product that will not only have a good value for their clients’ money but also be able to provide for them the satisfaction that they need (Egan, 2007). Even though the market has been flooded with a wide variety of chocolates, this is a unique brand that only needs to be tested by the customers for them to develop loyalty. There are proper hygiene procedures that have been followed in coming up with the product to ensure that they meet current health needs. Every ingredient that has been used in the brand has passed the necessary tests of good measures. All this is in the effort of the company to ensure that there are no complaints associated with allergies or other health care complications (Smith & Taylor, 2004). The ingredients that have been used in the product as well as their nutrient component have been presented on the pack just to assure the customers of what they are consuming. However, the brand being new in the market, the company understands the need of employing extensive sales promotion techniques to ensure that it covers the wide field that it is intended to.
Test company has been in the market for some time but has not been involved in the manufacture of chocolates. It has been specialized in the production of other milk products and at the same time gauging the environment for the production of chocolates. Its milk products have been accepted in most cities of the United States and also neighboring countries. It has been due to this that the company felt comfortable to launch into the production of chocolates.
As it stands now, the product has captured a considerable share in the US market despite the tight competition it is facing from such similar brands. There is a lot of demand for chocolates in the UK market which has encouraged the company to launch its sales promotion there. A study that has also been carried out in the UK market reveals that people have also developed a liking for the other products of the company which will make it easier for the chocolates to penetrate.
There are currently not many barriers in the UK market that can hinder the launch of the product. The political environment is encouraging enough considering that their economic policies are favorable for import products. The only challenge that the marketers may b experienced with is the cultural aspect of the people. There is so much about culture in the UK which the marketers will have to put into consideration especially when they are meeting the people face to face. The necessary research has however been done and if correct procedures are followed then there will be no barriers.
The biggest competition to Testify chocolate is the Cadburys brands of chocolates and nestle. This is basically because of the length of time that they have been in the market and the international recognition that they have. As the company launches this product into the market, they are deeply aware of this challenge but yet determined to gain a share in the market. There is a lot of optimism by the company that once the customers have a taste of the chocolate, they will love it and come for more. The quality standards that have been used in coming up with the product are enough assurance that it will have a competitive advantage in the market.
The competitive landscape is wide considering that chocolates are widely accepted products. The company will not only need to fight competition in America but also in other nations (Varey, 2002). Research is still being carried out by the marketing experts of the company to find the possibilities of gaining the market. However, everything is being carried out strategically to ensure that the intended objective is achieved.
Competitor No1: Cadbury brand of chocolates
About Cadbury, The Cadbury Company which is the biggest competitor of testifying chocolates has been in the market for several decades now. The company was established at a time when chocolates had not been widely accepted in the market.
Segmentation As they caught up with a smaller market segment, the needs of the people changed abruptly as they started showing a love for the chocolates. This was also a time when the company had gained a monopoly in the market as few industries specialized in the manufacture of chocolates. Cadburys hence gained goodwill as it became the main brand for chocolates. The company managed to launch the product internationally as well as a venture in the production of a wide variety of the product. As other companies came into the market, it was not easy for them to catch up with Cadburys due to its popularity and acceptability. The company has been strategic in carrying out its sales promotion by targeting groups that were into the chocolates. Targeting; The American youth and children were the first target group as they comprised of the future and present generation. Chocolates were social snacks that could be taken at any time and anywhere which made them gain a lot of popularity. Cadburys was also packed in shiny packages that made them perfect gifts for kids especially during their birthdays.
Communication strategy; The brand mainly began as a beverage and later on developed into a milk chocolate bar. By the time the chocolate bar was introduced into the market, people were already excited about having a test of it. It was considered to be the most flexible means through which they would be refreshed (Ace, 2001).
Positioning; The chocolate bars started being sold in the street markets which boosted their sales even more. It was a shortcut that made people enjoy a bar of ready-made chocolate without necessarily having to personally prepare it. It is presented in attractive shiny packages, making them even more appealing to their clients. They are also advertised on billboards that make the passers-by desire to have a taste of the same.
Competitor No2: nestle
About nestle; Nestle is another chocolate brand company that will be a threat to the new brand. The company was established in the early 1900s and also gained a competitive advantage. It has been involved in the production of milk products and its quality is appreciated. The company has gone through a lot of changes that have made it stand strong in the market (Bowie & Buttle, 2004).
Segmentation; It is also an international product with most of its clients in the United States and Canada. Due to its long stay in the market, and with the rising new brands of chocolates, it has not been able to penetrate a wider market.
Positioning; Nestle has not captured the market in chocolate brands as Cadburys had. It has mainly been credited for the high quality of other milk products. It is hence with a lot of optimism that the new brand of chocolate will not be threatened much by the brand.
Targeting; just like Cadburys, nestle has also been targeting children and the youth. These are the largest chocolate consumers in the world with the age group ranging from 9 to 35.
Communication strategy; the communication strategy that has been used for nesting is through advertising and sales promotion. They have made good use of the print media as well as television advertisements. They have also had pamphlets that have been distributed to schools and colleges when carrying out their sales promotion campaigns.
Target market profile
Primary market; The primary market for testy chocolate is children and the youth. These are children between the age of 9 and fifteen and the youth between the age of 16 and 35. They are the people that are still so much excited about chocolates. Children bear the highest percentage of about sixty while the youth with the percentage of forty.
Secondary market; the secondary market will be composed of married couples and children below the age of nine years. Married couples choose to buy chocolates during specific seasons. Their percentage is hence 25 and that of the children below the age of nine is 15%.
The first market to capture will be the major cities of the UK and thereafter spread to other parts of the country. The company is aimed at marketing the products to the large masses of the UK. This is mainly because London is considered to be a representation of the whole country. It will also be a good starting point that will determine how the product will perform in other locations (Busch, et al. 2007). After launching the product in London, the product will be taken to other major cities of the country. The rate at which the product will gain popularity in selected cities will be the main determinant of how fast the company will move to other parts of the country. It is the desire of the company to first exhaust promoting the chocolate in a selected region before proceeding to the next.
The objective of the company in promoting the product is mainly to enable the masses to understand its nutritional value and also its popularity. The company does not doubt its quality due to the standards that have been maintained in its manufacture. There is however a need for people to know that the product exists and that they will not have to regret spending their money buying it. The company also wants to assure its consumers that the product came up as a result of extensive research that was carried out to ensure that the current market and consumer needs have been met. The product also comes in different forms and quantities that make it possible for different categories of people to obtain them.
The communication objective of the company is also to know how the product will be perceived in the market. As the product is moved to different states of the country, the marketers will watch out to find out if they are appreciating it or not. There are also some assumptions about the products that will be able to be clarified by the marketers even as they move around (Fill & Hughes, 2008). Consumers will be allowed to ask questions about the product and also seek clarifications. From the feedback that will be obtained, it will be easier for the company to know what needs to be done to the product to ensure that it covers a wider market.
Marketing communication strategy
Advertising is one of the strategies that will be used by the company to communicate to potential clients about the new product.
Advertising Objective; The aim of this is to guarantee them that what they are getting has been tested for quality.
Advertising strategy; The advertising strategy will however differ from location to location (Dahlén, et al. 2010). This is basically due to the different cultures in the target market. The advertising strategy that will be used in New York City will be different from that which will be adapted in countries outside America. The marketers who have done thorough research about the different cultural backgrounds of the target market have compiled a report that will be of great importance to the advertising team. The strategy of advertising will also depend on communication channels that may be preferred by the target consumers. Testify chocolate is mainly a confectionary that can be eaten by people of all ages and at all times.
Advertising tactic; The tactic that will be used in advertising will be to sharpen people’s appetite towards it. The advertisement will be designed in a way that will make chocolate and nonchocolate lovers desire to test the new brand (Hughes & Fill, 2007). It will have to convince them that it has a unique irresistible taste that also takes care of their health. Such advertisements will mostly be placed on billboards at junctions and other busy places.
Sales promotion will also be another awareness technique that will be used by the company to market the product.
Sales promotion Objective; In sales promotion, the main objective will be to make the product gain a competitive advantage in the market. This will be done through various demonstrations and also giving gifts and free samples.
Sales promotion Strategy; The strategy that will be used will be mainly to collaborate with other companies that deal in fast-moving consumer goods. Sachets of the new chocolate brand will be attached to them to ensure that they have a test of it (Pelsmacker, Geuens & Bergh, 2007).
Sales promotion Tactic; The Company will take advantage of the consumer goods that are loved and appreciated by the target groups. This will ensure that they have a compulsory taste of the new chocolate which may prompt them to change their chocolate preferences. Another sales promotion tactic that will be used will be to encourage the buyers to buy the chocolates in bulk. This will be done either by adding them an extra sachet for a certain quantity that they buy or introducing economy packs. After comparing the benefits of buying the chocolates in bulk and large quantities, most of them will prefer the option to save some money.
Public relation is a strategy that the company will employ to develop a relationship with its potential consumers.
Public relation Objective; The objective of public relations is mainly to attract and retain customers (Jain, 2008).
Public relation Strategy; The strategy that will be used in this procedure will be to directly meet with the public to tell them more about the new product. The company aims at ensuring that the public is educated on what is contained in the product to enhance their confidence. The public needs to be assured that the company had their health in their minds as they were coming up with the product. This will make them develop confidence knowing that it is not preserved or made with harmful chemicals that may be a threat to their health.
Public relation Tactic; The tactics that will be used in this procedure will be a demonstration of the hygienic measures that are taken in the manufacture and packing of the products (Copley, 2004). The company will produce a video clip to showcase some of the stages and processes that are used to come up with the product.
Sponsorship is another marketing communication strategy that will be utilized by the company in creating awareness of the project. Under this strategy, the company will be able to get more avenues of advertising its product.
Sponsorship Objective; The main objective of sponsorship is to make the product to be respected among the fans of a certain program. The company will liaise with some specific producers of programs that are loved by the target consumers. It will hence take advantage of all the commercial breaks in the program to advertise its products. The company mostly desires to sponsor certain educative programs that are aired on common television and radio stations (Yeshin, 1998). This will ensure that a wide variety of potential clients are captured to have a taste of the chocolate.
Sponsorship Strategy; The strategy that will be used is to make the participants in the program, especially if it is a drama series to use some of the chocolates and express a liking for them. In other nondrama programs, the company may have the opportunity to demonstrate and explain the uniqueness that is in the chocolate.
Sponsorship Tactic; The tactics used will ensure that the advertisement in the program is so catchy that it will create a curiosity within them to want to have a taste of the chocolate.
Planning and budget
|Print Media Campaign||1,500,000|
The company realizes that this will not be a cheap activity considering the wide market it desires to reach. It will require some substantial amount of money that the company has planned for. The funds have been allocated in terms of the channels and media that will be used in promoting the product as well as the audience that will be covered. The total cost that has been estimated for the entire project is around five million US dollars. The funds have been fairly distributed to cater for the TV campaigns, print media campaigns, sales promotion as well as sponsorships. Most of the amount will go towards print media and TV campaigns (Sheehan, 1999). This is due to the considerations that have been made after a market survey that suggest that they are the channels that are likely to reach a wider coverage. They have also been considered to be avenues that will market the product more compared to other sales promotion techniques. To ensure that both time and money are wisely spent, the company will come up with a timetable on how the events will be carried out. This includes the strategic places that they desire to put billboards, appropriate times for advertising on TV and radio (Ferrell & Hartline, 2008). The sales promotion staff that will assist in other coverage have also been identified and each one of them allocated an area in which to carry out the duty. This will assist in evaluating how successful the entire procedure has been.
|Channel||Timing||No of week||Total No||Price per each||Total Price|
The company desires that they make a selection that will have a good value on their money. The objective of employing all the sales promotion techniques is simply to ensure that the products are made known to the masses that will, in turn, develop a liking that will make them buy the chocolates. The company is therefore employing strategies that will assist in evaluating how successful the strategies used will be. The evaluation will be done based on how the products sell after employing the promotion strategy (Govoni, 2004). After carrying out a sales promotion at a specific location, the company will dispatch a certain known quantity of the chocolates to the market. After some time, an analysis will be carried out to determine how much quantity has been sold. The company will also involve distribution agents in carrying out a market survey of how the product is performing.
The international market will be considered after exhausting the promotion of the product in the US. The chocolate is an internationally accepted snack, it will not be difficult for the company to launch it. The only difference will be the kind of sales promotion strategies that will be used. The company will have to put into consideration the cultural perspective of the people and also look out for appropriate media to use to start it off. The company has considered the internet to be the best beginning point of its international sales promotion. The product will be advertised on some of the frequently visited sites by the target consumers to find out how they react to the same. It will be easier for the company to enumerate the location that is likely to accept the product faster by the feedback they get from the internet (Leitner, 2007). This will act as a guideline that will help them know how and when to launch the product. It will also be necessary for the company to adopt an internationally acceptable package that will ensure that the product maintains its quality and freshness. The company may choose to have distribution centers at strategic locations that will ensure that the customer that hears of the product gets a regular supply of the same. The company will first have to make good use of the already established distributors of confectionaries as they have a clear understanding of people’s tastes. Using the distributors, an international analysis will be able to effectively be carried out and hence giving the company a go-ahead to manufacture and market the products more in that particular location.
Testify chocolate is a new brand in the market that will have to go through extensive sales promotion to make it familiar to its target consumers. Despite the quality assurance that the company has towards the products, it is the sales promotion tactics that will be employed that will determine how it performs in the market. It is however with a lot of optimism that the market survey that has been carried out on the product and the sales promotion tactics that have been considered for the promotion will produce positive results (Jain, 2008). Apart from the strategies that have been mentioned above, the company is open to other strategies that may prove workable. Due to the changing market situation, the selected procedures may not necessarily be the best for the product. Through the analysis that will be carried out, it will be up to the company to consider whether the tactics will continue being used or not. The company will also be checking out the different forms of the products that the people will prefer. This will make them know how to diversify on its production to ensure that the needs of the clients are met. In gauging its performance in the market, it will grade its sales volume as compared to its major competitors which are Cadburys and nestle.
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