New Product Development (NPD)

NPD Checklist

  1. What insight is NPD based on
  2. What is the customer perceived value and fiscal value
  3. Is it a viable option in terms of manufacturing – what is the cost of doing this?
  4. Are we running a test of the New Product if so where, when, for how long (should this be tied in with a demographically specific pilot).
  5. Do the changes impact retailers view in terms of RPMS (return per metre shelf)
  6. Halo Effect

This section explores Dairy Milk – the product – this overlaps with our piece on competitive analysis and via research and actual surveys we can identify some key characteristics of the product and how it is decoded by the consumer.

Product Considerations

Cadbury Dairy Milk is the mother-brand for all the Cadbury range. There is the classic dairy milk block but beyond that you have a huge variety of dairy milk options i.e. caramel, fruit and nut etc.

The keynotes Confectionary report shows how gift / sharing chocolate (particularly with chocolate being consumed at home more) is a strong area of growth. In addition chocolate as a snack has a huge impact on sales particularly those positioned a points of purchase (on tills) ideal for those grabbing a quick lunch. This was re-iterated by our interview with Marks and Spencer in Southampton:

(https://www.dropbox.com/home#/Maria/Survey%20videos%20edited:name-sorter,1::24002057)

One of the key changes to consumer behaviour is there health and ethical considerations. With obesity in the UK a major concern consumers are very concious of unhealthy foods and the promotion of such foods (without due consideration to health risks) is frowned upon. Alongside this ethically sourced ingredients be it sustainable forestry through to communities harvesting cocoa receive fair wages. Cadbury has FairTrade status, but unlike the sister product – Green and Blacks, Dairy Milk is not organic. There is a fine line between improving the health and ethical considerations of dairy milk without re-creating Green and Blacks.  (Keynotes)

Premium brands like Lindtt are beginning to threaten Dairy Milk (see SWOT analysis for Dairy Milk), people are showing preference to high cocoa premium chocolate. One of the key differentiating factors is the size of the chocolate – the premium brand is much thinner. This initial observation led to an investigation into New Product Development.

Product Insights:

Reviewing Chocolate Thread 25.05.08
“I can only speak for myself, but for me it’s more the brand that initially draws me in than the packaging (although eye-catching wrappers are good!) For example, I’m more likely to try a new Cadbury bar than a no-name one, although I like to try anything new so that’s not much that doesn’t get taste tested by me! As for whether I’ll buy a bar again, it’s down to taste, but that said I do think it helps if a bar looks nice (the chocolate itself rather than the wrapper).” http://www.chocolatereview.co.uk/choctalk/index.php?topic=5330.0 (U/name: NatashaAllden. Password: chocolate)

Ciao – Cadbury Dairy Milk Review
“not as smooth” – http://www.ciao.co.uk/Cadbury_Dairy_Milk__Review_5640940

Ciao – Packaging Considerations
http://www.ciao.co.uk/Cadbury_Dairy_Milk__Review_5319049

ReviewCentre.com – Positive CDM Reviews
http://www.reviewcentre.com/reviews-all-55040.html#tabs-menu

dooyoo.com – CDM reviews; attitudinal vs. operational
http://www.dooyoo.co.uk/food/cadbury-dairy-milk-chocolate/reviews/

Chocablog – CDM Review (positive)
http://www.chocablog.com/reviews/cadbury-dairy-milk/New Product Development

Taking into consideration consumer demant, key market trends and current product status we agreed that as part of the pitch we integrate new product development. This includes the following proposals:

  • Sharing Box – chocolate is 50% thinner than Dairy Milk today – alluding to higher quality. Along with this a greater emphasis is placed on cocoa not milk again re-iterating the quality and removing the health concerns. The box is the same length and width but the depth is reduced (due to the thinner chocolate) – this ensures that we do not give off the impression that consumers are getting less chocolate (http://www.guardian.co.uk/business/2008/jun/19/cadburyschweppesbusiness.retail) but are getting a more refined chocolate. In addition the packaging is simplified reducing environmental concerns and giving Dairy Milk a clean new look.

  • Snack Bar – building on the consumer demand for snack chocolate we propose a small 4 square snack bar (in same style as sharing box – different design) that accomodates 8 thin slices. This gives the impression it is more for your money without being a thick chunky bar that raises health concerns, again this product design communicates quality. In the same way as the sharing box promotes the cocoa ingredient and fairtrade status so should this product. Importantly with the snack bar is its positioning at a point of purchase i.e. at a till, or/and incorporated into a lunchtime meal deal. (Consideration: CDM Snack – http://i146.photobucket.com/albums/r243/clever_dick/CadburyDMSOZ.jpg)
  • Novelty Chocolate – this is designed to promote dairy milk during seasonal periods and is ideal as small gifts. The package is simplified so a single chocolate is wrapped up into a shape determined by the season ie. father christmas or the easter bunny. Again the core communication of cocoa, fairtrade and thinner chocolate for quality inferences are integrated.

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