Competitor Analysis

Competitor Analysis Checklist:

  1. Analysis of Competitors : Who are they; What threat to they pose; What is their profile; What are their objectives; What are their strategies; what are strengths & weaknesses. (http://www.tutor2u.net/business/strategy/competitor_analysis.htm)
  2. What is the theory driven out of this analysis (data to value concept) and how are we implementing this. (i.e. Milka is a big threat but people think CDM is tastier – promote this attribute)
  3. Identify the ‘noise’ likely to interfere, how does our campaign differentiate and stand out from the noise

Cadbury’s has a strong global presence (Euromonitor International):

UK’s Chocolate Market

More than a third of UK consumers buy chocolate bars or blocks at least once a week, with almost half (48%) purchasing these products on impulse. Chocolate is also assuming increasing significance during social occasions, since up to 70% of consumption is now believed to occur in the company of other people.

In terms of segmentation, countlines represent the largest sector within the total market, accounting for almost 40% of sales by volume. Almost 45% of all countlines are purchased on impulse, which highlights their strong position within the snacking market. Boxed chocolates and assortments account for an additional 23% of overall market value, falling to 17% for moulded bars and blocks and 14% for bagged selflines.

Milk chocolate has long been the UK’s preferred variety, and accounts for over 90% of total market value.

Major brands which have been extended over the last 18 months or so have included Kit Kat, Dairy Milk, Milkybar, Bournville and Terrys Chocolate Orange.

Three main competitors:

  • Kraft’s Milka – brought our Cadbury’s in February 2010, already had their equivalent of Dairy Milk in place – Milka
  • Mars Galaxy – a direct competitor to Dairy Milk in terms of price and quality
  • Premium Chocolate – eating into Dairy Milk market share (Lindt)

Milka, Kraft Food

Kraft brought our Cadbury’s in February 2010 and in so doing brought their Dairy Milk equivalent, Milka into the UK market. With concerns internally that Milka will cannabalise Dairy Milk sales it raises concerns over the take-over (which is being investigated) as Kraft has already renegated and closed one UK factory to the expense of UK jobs. This does not hold favour with UK consumer and raises serious concerns for the future of Cadbury.


Galaxy (UK, Middle East, Africa)/Dove (United States, Germany, the Netherlands, Canada, France, Australia, China, and Greece), Mars Group

Mars is a formidable premium chocolate with Galaxy/Dove tablets that grew its global share by 0.3 ppt in 2008, to 5.3% and maintained its ranking as the third largest tablets label in the world (WARC study 2009). The company’s portfolio is weak in higher-margin, premium-priced products, thus Mars is missing out on growth opportunities offered by trends, such as ethical, fairtrade and other premium trends.
Strategy:
The Mars strategy includes expansion via smaller-scale buyouts focused on niche products such as producers of premium/organic and fair trade chocolate such as CocoaVia, “all the benefit of chocolate without calories.
Of Mars‘s packaged food interests, snack bars, albeit off a small base, is predicted to strongly grow over the 2009-2014 period, at a
Off Small Base but Dynamic Growth in Snack Bars:
CAGR of over 2%. Mars Held a share of over 1% in snack bars in 2008, to rank 12th in the world.The reformulation of its Mars and Snickers chocolate bars to reduce saturated fat content adds a unique edge to its products in the otherwise saturated confectionery market and the initiative should be rolled out to the wider portfolio.
Main Product:
Introduced in 1956, bought buy Mars in 1986. In 2007, Galaxy chocolate was rated number twenty-six out of the “Top One Hundred Grocery Brands” by “Checkout Magazine”. Cambridge Foodfacts conducted a consumer taste test in late December of 2007, and a Galaxy chocolate product won the very top place. In fact, according to the consumers, it was perfect. Out of fifty possible points that rated taste, texture, and overall quality, the Galaxy chocolate product scored a fifty.

Since 2010, Galaxy chocolate is now “Rainforest Alliance, Certified”.

Current Galaxy Advertising:
Engagement for the protection of the Rainforest
“Galaxy taste good and does good”
Dove chocolate ads:
Dove is a silk scarf of chocolate. Dove targets premium customers.
Viral video on Facebook:
Claudia Winkleman loves to read in bed with a hot mug of tea and a bar of Galaxy chocolate! Where is your favourite place to indulge in a little me-time and read a good book? Claudia Anne I. Winkleman, is an English television presenter, radio personality and journalist.


Lindt, Lindt & Sprüngli

Lindt is the number 11 global confectionery brand, with a share of almost 1%. Lindt is a Premium brand chocolate targeting upper-mass market segment
Lindt has outperformed larger rivals such as Hershey, Mars and Nestlé, benefiting from its luxury standing compared with the largely mass focus of its competitors. Rising demand for premium and healthier dark chocolates has been a key growth driver in regional chocolate confectionery.(WARC study 2009)
Strategy:
Lindt does not engage in traditional advertising measures, for no tarnishing its brand’s premium image through mass-market exposure.
Lindt’s brand strategy utilises a central core brand: a coherent design aesthetic.
Main Product:
Excellence is a core brand in terms of innovation, with is leading the company’s efforts to tap into rising demand for dark chocolate, as well as for single source cocoa beans.


Current Advertising campaign:
What is at the center of your dreams?
Lindor Truffles is providing consumers with the opportunity to turn their dreams into a reality by offering chances to win sweet indulgent prizes or the ultimate dream prize of $5,000 towards fulfilling these dreams
Lindt Boutiques and Cafés

Food and Drink Federation

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