I have been asked by Managing director of Elite Chocolates to investigate launching a new product on to the market in the form of a low fat chocolate bar. I will intend to do using tasks which include Primary and Secondary research. I have done several researches which are listed and explained below. Research Undertaken The first piece of Primary Research (this is the fundamental data that has been gathered for a specific purpose through direct investigation such as; observation and survey) that I undertook was to look at the live marketing campaign of the film Santa Clause.
From the research it was possible to see that the creator of the film targeted at specific customers there was a lot of advertising used to promote the Santa Clause 3 and to let people know about the film. From that research I also found out the different ways of advertising for example: on TV, billboards, posters, word of mouth, local newspaper etc. Another Primary Research was that we surveyed 796 people on their chocolate purchasing habits. Our questionnaire aim was to find out fundamental facts such as: How many people buy chocolates bars regularly? How much would you expect to pay for a low fat chocolate?
Why do you eat low fat chocolate? And etc. Using the research I also found out most people didn’t’ prefer low fat chocolate. We also asked our sample Personal information such as age range, gender and whether or not hey like buying chocolate. My research showed that 612 people from 698 eat chocolate. Nearly than half of the people were 11-16 years old which could be our target age group. The most preferred pricing was 31p to 40p as it was preferred by 127 people. The pricing could be using for Elite chocolate because most people are willing to pay and it is affordable price according to the consumers.
In addition to this w also looked into how different retailer sold low fat chocolate bars. My research included a small, medium and a large size supermarket. M research showed that nearly all the supermarkets had McVities product which show that they have a big share in the market. In terms of pricing the cheapest low fat bar was also sold were McVities. I also research our current competitors (existing products on the market) products, we found out the flavours, type of packaging, size of bars and selling prices etc. Furthermore, we carried out Taste survey to check how popular certain flavours, filling and textures were.
The tasting survey was out of more than 110 people, in the survey they were tasting different low fat bars to see which one are the most or least popular. For the taste the most popular was McVities Go Ahead Plain Yoghurt Breaks as people voted 14. The most popular texture was Go Ahead Apple Bakes as most of the people scored it 8 and above. The most famous flavour was McVities Go Ahead Caramel Crunch Bars with 25 and McVites Go Ahead Plain Yoghurt Breaks. Overall the most popular was McVities Go Ahead Plan Yoghurt Breaks. From the Tasting survey we established that the least favourite was Ryvita Cherry Goodness Bar.
We also looked briefly into a product launch from this we conclude an extensive strategy of promotion is needed to get the product established and selling. The most successful low fat as was Mc-Vities Go Ahead Caramel Crunch Bars and the least successful low fat bar was Chocolate Ryvita Cherry Goodness Bar. We have discovered from conducting the questionnaire that a lot of people do eat chocolate however in proportion few people eat low fat chocolate, women were more likely to eat low fat bars on a regular basis than men so our target Market is women.
The most popular flavours were Apple Bakes and Caramel. Also with the help of the questionnaire we found out that consumers were most likely to pay only up to 50p per bar. We discovered that supermarkets such as Tesco sold a larger variety of low fat products, but wee most likely to only sell in multi-pack: small retailers such as newsagent were very unlikely to sell any low fat chocolates as most considered them to be aimed t niche market.
I also found out that retailer such as chemist and health shops stocked low fat bars but only he widely promoted ones as the owners of the business believe had these type of products makes higher profit, these retailer makes higher profits because the demand for new products is high and retailers charge a high price furthermore, the retailer buy products in multi pack and sells it in single pack which makes more profit. Recommendations I have taken into account all my primary researches and I believe that the product should be launched into the market.
The new product Elite chocolate should use the 4p’s effectively which are product, price, promotion and place they are also called the Marketing Mix. It will have to sell its product in the right place; breaking into supermarket is very difficult, as large retailers are reluctant to new products. Elite Chocolates bet chances of success are selling in Gyms, Leisure centre, news agents and chemists and in heavily polluted areas; the reason they are successful is because people want to improve health and prevent eating high in fat products and Elite chocolate is low fat.
The chocolate bar must b priced reasonably, it must not be expensive, and in my opinion the best pricing would be Penetration Pricing; Elite Chocolate can break through other competitors and get share in the Market. Alternatively they could use the pricing form 31p to 41p as most people are able to pay the price. The company could also use destroyer pricing in the market as it will eliminate competitor and leave the market wide open.
The low fat chocolate bar need to be low fat, taste good, the flavour should be similar to mint as most people preferred it and filling should be caramel or nut as this was the most popular and people liked it. There should be an extensive promotion campaign; the bet way would be offering free samples with women or men magazines this will inform more people about the product and give people the taste of the product. Soon it should be introduced in bigger supermarkets as it will attract more customers and new customers ill be informed about the customers.
The low fat chocolate market is very competitive; with one mistake a company can lose a lot of money. In the market there are other successful products and other company’s has a bi share of the market. Elite chocolate need to be careful when making decisions. I believe it is in the company’s best interest to launch a new product as our research and planning shows that we can succeed. The research shows that there is a place for a better product and competitive price. Following the above recommendations will enable the product to be liked and preferred b people and the company will succeed.