Creating a Brand Using the Low-Budget Route: Choco-Energy Essay

1. Introduction According to Mintel (2012), 49% of chocolate users stated that if the price of their favorite bar rises they would cut back on chocolate. In addition, 68% of 16-24-year-olds full-time students consider that everyday low price is one of the main factors that they would consider for a brand (Mintel, 2012). Furthermore, for those DEs and households are also the most likely groups to consider low prices as a main factor when choosing which chocolate brand to buy (Mintel, 2012). Therefore, creating a new identification brand using the low budget route in Pound City market will have a great profit space in the confectionery market. The report will base on Snickers Peanut Butter Brand to create a new identification brand. The detail explanation of new brand’s development process can be seen below, which including the new brand name, brand image, brand positioning and package design. 2. Overview of chocolate market Although there is a decreasing trend in the number of eating chocolate as the reasons of healthy eating, aging population and rising sugar prices, the chocolate market has grown slightly by 6% over 2006-2011 to ï ¿ ¡1.58 billion (Mintel, 2011). Mintel (2012) also noted that 89% of consumers continue to eat chocolate confectionery because of its position as an affordable treat. For those users chocolate as indulgent treats allow consumers to lift their mood and satisfy a sweet craving. Chocolate market is relatively fragmented with the presence of a larger number of smaller brands, such as Mars, Cadbury Trebor Bassett, Nestle, Haribo and Ferrero and some own-label offerings manufacturers (Mintel, 2011). This can be seen from Appendix 1 about the manufacturers’ shares in the UK chocolate confectionery market. It  shows that Kraft Foods (Cadbury), Mars, Nestle are the three leading brands in the UK confectionary market, which taking up 33%, 27% and 16% of market share respectively (Mintel, 2011). 3. Choosing brand in the chocolate market The researcher will base on Snickers brand Peanut Butter Squared to create a new identification brand with new brand name, brand image and package to compete with current range of manufacturers’ own brand. Snickers Peanut Butter Squared is one of the famous brands of Mars Company. Mars is a US-based globally operating food and drink conglomerate company. Its brands in the confectionery segment include Lockets, Skittles, Starburst and Tunes (Mintel, 2011). Mars Chocolate is one of the world’s leading chocolate manufacturers. Its iconic brands include M&M’S ®, SNICKERS ®, DOVE ®, GALAXY ®, MARS ®, MILKY WAY ® and TWIX ® (Mars Official website, 2012). 4 Brand analysis for Snickers Brand 4.1 Brand name of Snickers Brand According to Chernatony and McDonald (2003) noted that brand names are perceived by consumers as important information clues, which helps to reduce the need to engage in a detailed search for information. The name of Snickers was launched under the name Marathon chocolate in the 1990s as Mars Inc aimed at consolidating branding exercise by bringing all its corporations products under unified Mars branding and make its brand be recognized both locally and globally (Ezine @rticles, 2012). Now Snickers is one of the largest confectionary ‘single bar’ in the world and people will think of energy bar when they see the brand name of Snickers (Mars official website, 2012). 4.2 Brand development of Snickers The brand development for Snickers Brand Peanut Butter Squared both has from its average nutrition but also from its package. The calories of new Snickers Peanut Butter Squared is litter smaller than original Snickers from 1.78 oz and 250 calories, versus 2.07 oz and 280 calories for the original bar. Each of the squares are about 1.25 inches across, and 3/4 inch high (LaBau, 2010). In addition, the color of the packaging changes from brown to yellow. Inside of the package, there are two pieces of chocolate bar instead of one larger bar compared with original Snickers bar. This is a kind of brand extension based on Peanut Butter chocolate category. 4.3 Brand image of Snickers Chernatony, McDonald and Wallace (2011) stated that brand images enable consumers to form a mental vision of what and who brands stand for. Because consumers will select a brand by observing whether the images that brand convey match the needs, values and lifestyles of consumers. In the case of Snickers, Snickers focus on broadening its appeal from a largely ‘male’ base to include women and older consumers. The company pays much attention and invests heavily in maintaining and strengthening their brand image. One of the most effective and targeted marketing tools for the Snickers brand at its disposal is through sponsoring key sporting events to squarely position it as an energy booster, one of its slogan is ‘ the big eat when you are hungry’. With the effort by the Mars Company, now Snickers Bar creates its brand image as providing the fuel and energy for the body and mind (The Irish Times business, 2000). In addition, the Snickers brand represents one of the young generations’ wishes that they want to be recognized and accepted by friends around them. Therefore, they need replenish their energies to enjoy with their friends and not go behind them. 4.4 Brand personality of Snickers A brand should represent more than just utilitarian benefits but also give added values that satisfy social and psychological needs for consumers. Because intrinsic physical product with an aura, or personality will give consumers more greater confidence in choosing a brand (Riezebos, 2003). Snickers brand created its brand personality through launching celebrity endorsement campaign with words like, â€Å"Peanutopolis, Hungerectomy, Nougtocity, Substantialicious and Satisfectellent† on its outdoor billboard advertising campaign to attract the younger generation and to gain trust with popularity (The Irish Times business, 2000). 4.5 Brand value of Snickers SNICKERS Chocolate bar create its brand value by providing the fuel and  energy for the body and mind. With busy lifestyle recently and many families on the go, Snickers bar as a great-tasting snack that captures the essence of a portable snack brings consumers with great convenience and satisfies getting the most of each moment. ‘When you hungry, grab Snickers bar’ is great to reflect the brand value of Snickers. Nowadays, the brand value of Snickers brand can be seen from its overwhelming popularity, recognition as a top-quality product and the respect and admiration of consumers world-wide as a world leader in the snack food category (The Irish Times business, 2000). 4.6 Package strategy for Snickers Meyers and Lubliner (1998) illustrated that the package form can communicate images that influence consumer perception, appeal to the consumer’s emotions, and motivate desire for the product before the consumer ever reads the label or sees the actual product. In their opinion, the package is the product. In the case of Snickers Peanut Butter Squared Brand, the packaging is little flatter, shorter and wider than the standard Snickers package. The package outside for Snickers Brand Peanut Butter Squared with a golden yellow background and â€Å"Peanut Butter† clearly spelled out in big letters. Inside the package are two squares chocolate bar. All of those are 1.25 inches square and about 1.75 inches high. There’s a nice ripple on the top (CandyBlog, 2010). The detail explanation about its product description has been introduced in the brand development stage. Slogan–Snickers chocolate bar uses more than one slogan. The slogan for Snickers chocolate bar is â€Å"Hungry? Grab a Snickers!† â€Å"Don’t let hunger happen to you.† â€Å"Hungry? Why wait?† 5 Brand image transfer Chernatony and McDonald (2003) noted that â€Å"a successful brand is an identifiable product, service, person or place, augmented in such a way that the buyer or user perceives relevant, unique added values which match their needs most closely. And its success results from being able to sustain these added values in the face of competition†. In order to create a successful new identification brand, the marketers will transfer the image brand from Snickers by maintaining some good elements of Snickers brand and add some elements that Snickers brand needed to improve to compete with its  competitors. 5.1 Energy booster and Offer value Figure 5.1: Chocolate confectionary brand personality-macros image, January 2012 According to the figure above, Snickers have a wholesome reputation. This might attributable to its high peanut content as Mintel (2012) stated that Snickers is a particularly divisive brand, with the high peanut content likely to be a deterrent for a number of people. Therefore, for the new identification brand, maintaining the high peanut content will be a great element to offer added value for the consumers. In addition, positioning the new identification brand as an energy booster is also important as Snickers attracts lots of consumers with this position and this also one of the reasons why Snickers brand succeed. 5.2 Ethical brand Figure 5.3: Chocolate confectionary brand personality-macros image, January 2012 According to the figure above, ethical is to be a great element for the consumers to show the brand personality for a food product. According to Mintel, (2012), consumers pay much attention on ethical sourcing of food. The impact of ethical sourcing will become a great element to influence consumer confidence. In addition, brands which source their ingredients ethically especially for those with a premium orientation product, this would be a great element to identify their brand image (Mintel, 2012). Therefore, creating an ethical brand will also be great element for the marketer to create a new identification brand. 6 Creative choice/ Brand identification 6.1 New brand name The new brand name is CHOCO-ENERGY, which is easy for consumers to member the name and easily associated with the products. Meyers and Lubliner (1998) stated that a product’s brand name is responsible for creating memorability. It helps to build brand recognition and loyalty, as well as providing product information. For CHOCO-ENERGY, this could help to inform consumers’  that this is a chocolate brand. In addition, it also notes consumers that this brand focuses on energy booster. 6.2 New brand image Chernatony and McDonald (2003) stated that brand images enable consumers to form a mental vision of what and who brands stand for. Because consumers will select a brand by observing whether the images that brand convey match the needs, values and lifestyles of consumers. The brand image for CHOCO-ENERGY brand is to inform consumers that this brand is more than just another chocolate, â€Å"it as a reflection of a way of life, where people live with energy, joyful and healthy†. For the new identification brand, CHOCO-ENERGY would like to transfer a healthy and energy image for the consumers and let consumers to be treatwise for chocolate based on GDAs (Guideline Daily amounts). This new brand aims to inform consumers to be enjoyed as part of a healthy, active lifestyle. Because some of them might consider chocolate leads to obesity issues while eating limited chocolate can also provide benefits for one’s healthy because the elements contain in peanut butter and peanuts would benefits for consumers’ nutrition. Peanut butter and peanuts provide protein, vitamins B3 and E, magnesium, folate, dietary fiber, arginine, and high levels of the antioxidant p-coumaric acid. All of those elements would help consumers to protect against a high risk of cardiovascular disease (HubPages, 2012). 6.3 Brand positioning According to Aaker (2002), brand position is the part of the brand identity and value proposition that is to be actively communicated to the target audience and that demonstrates an advantage over competing brands (Aaker, 2002, pp176). The new identification brand will target on young teenagers and positioning on creating an everyday low price and importance of chocolate brand to British consumers. According to Mintel (2012), 15-24-year-olds stand out as the most important demographic in the chocolate and confectionery market, with the highest share of total users (91%) and also 44% of heavy users (Mintel, 2012). In addition, 68% of 16-24-year-olds full-time students consider that everyday low price as one of their main choice factors for a  chocolate brand (Mintel, 2012). Furthermore, there is a growing numbers in the population of the high usage 25-34-year-old age group as well as Abs and C2s look set to drive sales growth in the coming years (Mintel, 2012). Therefore, the new identification brand will target on users from 16-to-34 year olds and creating an everyday low price brand in the confectionery market to attract consumers’ attention. 6.4 Brand personality Aaker (2002) noted that a brand personality represents a functional benefits or attribute that may be relatively ineffective if it lacks a visual image established in the customer’s mind. Brand personality for the new identification brand is that CHOCO-ENERGY not just another chocolate bar that provide sweet craving or energy for the consumers but also a brand that value for money. Because according to Mintel (2012), chocolate suffers from a poor perception of value with only 28% of chocolate users think chocolate bars provide value for money. In addition, 65% of users consider that brands benefit from high trust as a main choice factor when they choose a chocolate brand. Therefore, improving perception of value and creating high trust for the new identification brand is emergent and significant. In addition, according to the brand image transfer part, energy booster and offer added-value are great element for the marketer to create the new brand. Therefore, this brand aims to create an everyday low price and importance chocolate brand for consumers not only value for money on price but also on product content. The product will maintain the value of Snickers brand that providing high nut content as the high peanut content likely to be a deterrent for a number of people (Mintel, 2012). 6.5 Package strategy for the new identification brand Trott (2012) stated that package is a powerful selling tool for a company to achieve a competitive advantage because for consumers the package is the product. Before consumers select a product, they will see the package at first. Through the shape of the package, the recognition of the brand, the color and the words, the graphic style and format they will have a fundamental image for the product (Meyers and Lubliner, 1998). In addition, the name, logo or symbol of the package are all unique, appropriate, and legally ownable for the company to communicate a positive and memorable image about the product (Meyers and Lubliner, 1998). These would help to provide product information and attributes to the customers. Therefore, it is critical for the company to pay much attention on the package design. Next the detail explanation about brand’s logo, color for the package, product identification (net weight copy, benefit statement, flavor or variety identification, size, nutritional information, ingredients, distributed place, attribute description) for the new identification brand can be seen below. 6.5.1 The brand logo The brand’s logo refers to a uniquely shaped signature, which can be based on the brand name in some kind of unique typographic format or a uniquely styled configuration of the corporate initials (Meyers and Lubliner, 1998). The consistent use of the logo is one of the reasons to make a powerful brand and also is the fundamental building blocks of brand identity (Carter, 1999). For the new identification brand, the marketer will use the brand name as the brand’s logo. The researcher will use a script logo because this type of logo provides an image of casualness, fun, movement and entertainment (Meyers and Lubliner, 1998). This is more related to the image of new identification brand that CHOCO-ENERGY is more than just another chocolate: â€Å"it as a reflection of a way of life, where people live with energy, joyful and healthy†. The slogan of the new identification brand is â€Å"CHOCO-ENERGY Eat health to be a part of active lifestyle†. 6.5.2 Package inside and outside The color for the packaging of the new identification brand outside will combine both brown and yellow. Because brown is deep color and often used for gourmet food and confections to communicate good taste, warmth, and appetite appeal. In addition, this color also helps to identify the color of the product inside the package (Meyers and Lubliner, 1998). For yellow color, it looks bright and tends to communicate relaxation and joy. Inside  the package four cup shaped chocolate. The surface of each chocolate has a heart-style image. 6.5.3 Product Identification Each CHOCO-ENERGY chocolate bar will contain 210 calories with a total fat content 14 gm. In addition, for its protein, sugar and sodium content will be 4gm, 19g and 130 mg respectively. The new identification brand will also contain nougat, caramel, peanuts. All of these elements will be covered in chocolate coating. Net weight copy for CHOCO-ENERGY is 42g. The benefit statement of this brand is to be treatwise based on guideline daily amount to be enjoyed as part of a healthy, active lifestyle. This brand pays much attention to balance the flavor of the product to avoid the product more sweet than salty. In addition, the product avoids making the peanut butter layer too waxy and to make the chocolate strangely flavourless. There will four pieces of chocolate cups in the package. The package will be flowrap bags. This would help to increase the product store duration because it’s easy for chocolate to melt at a high temperature. In addition, it helps to improve the product se curity. The detail nutritional information and ingredients can be seen from A3 poster. 7. Conclusion In this report, the rise of chocolate price and the increasing growing number of own-label of chocolate brand as great reasons to explain why creating a low budget route brand is effective in the chocolate and confectionery market. In addition, the detail explanation about the Snickers brand such as the brand image that Snickers Bar provide the fuel and energy for the body and mind with slogan that ‘the big eat when you are hungry’. Snickers brand positioning â€Å"from a largely ‘male’ base to include women and older consumers. Snickers brand personality through launching celebrity endorsement campaign with words like, â€Å"Peanutopolis, Hungerectomy, Nougtocity, Substantialicious and Satisfectellent† to give a fundamental knowledge about how to create a brand. Furthermore, the brand image transfer as a great part for the report to show what elements will remain or added from the Snickers brand to create the new identification brand. At last, the new identification brand, CHOCO-ENERGY brand was created with slogan that ‘CHOCO-ENERGY Eat health to be a part of active lifestyle’ to represent an image that CHOCO-ENERGY is not just another chocolate, â€Å"it as a reflection of a way of life, where people live with energy, joyful and healthy†. CHOCO-ENERGY positions on creating an everyday low price and importance of chocolate brand to British consumers. At the same time, elements for the package design also explained to show the new identification brand. 8. References AAKER, D.A. (2002) Building strong brands. 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