Xhulia snickers marketing PDF

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Snickers is a candy bar introduced by Mars, Inc. in 1930. At that time one snicker cost only five cents, while nowadays the price varies from one to two dollars. Snickers operates more than in 70 countries and it is estimated to have more than $2 billion annual profits. For years, Snickers has maintained a well-known reputation in the chocolate industry (Rector, 2014). In 2018, Snickers was considered the best-selling candy bar in the world (Lang, 2018). HISTORY OF SNICKERS Mars Company was founded by Frank and Ethel Mars in 1920, who firstly released in the market the Milky Way bar. In a short time, this candy bar became very popular in the US. After this tremendous success Frank and Ethel decided to open a new factory in Bakersfield, California. Snickers were firstly produced in this factory. THE STORY BEHIND THE NAME Snickers candy was named after Ethel’s favorite horse, which died before Snickers were introduced in the market. While in US this candy bar was named Snickers, in the UK and Ireland was called Marathon. The reason behind this decision was the fact that Mars were primarily targeting athletes. Mars presented the high-calorie candy bar as the ideal snack for athletes who needed lots of energy to keep up with their strict, challenging and demanding tasks. Only in 1990, Mars phased out Marathon and used the name Snickers internationally (Lang, 2018).

BRAND CONSIDERATIONS BRAND IDENTITY

BRAND VALUES

Snickers core message and identity is a masculine, yet good-humored “get some nuts” message with a current campaign tagline of “you’re not you when you’re hungry” reflecting the satisfaction and full-up feeling consumers have after eating Snickers.

Snickers core values lay within the product convenience, the satisfaction of hunger and the fun, easy-going, masculine connotations that offers.

BRAND PERSONALITY (Snickers Report, 2015) Snickers have always been involved with sporting events and have built a personality based on celebrity endorsements and sports cars – this personality includes characteristics such as trustworthy, popular and confident.

SWOT ANALYSIS STRENGTHS

WEAKNESSES

(Bhasin, 2019) 1. Strong Brand Name Snickers has managed to establish a solid reputation and build a strong brand image for itself over the decades. The name in itself is enough to sell and does not need any product introduction. 2. Attractive Packaging Snickers has created a strong brand awareness through its classic brown colored packaging with Snickers written in capital bold. 3. Great Taste Snickers is famous for its unique taste of caramel, peanuts dipped in milk chocolate which helps in keeping the customer attached to the product 4. Unique Selling Proposition Unlike other chocolate bars, Snickers have been able to establish itself as a food item needed when someone is hungry. This places the product very uniquely in people’s minds. 5. The sponsor of major events around the world Snickers have been a sponsor in major events all over the world like Olympics 1984, FIFA World Cup in the 90s, and many more. This has helped the brand in establishing Snickers as a popular brand name all over the world. 6. Nutrition Due to its advertising as well as content of the snickers bar, the product is known to be a good nutrition item especially for body builders and people who work out. 1. Considered as Unhealthy Snack Snickers is perceived as unhealthy because it contains high-calories that lead to a weight gain. 2. Limited Portfolio

The brand has very limited portfolio products which keep it at a high risk in today’s volatile market. 3. Peanut flavor is not popular in many markets Not all people are fans of peanut flavor, especially those who are allergic to peanuts. OPPORTUNITIES

THREATS

 Tapping New Markets Though the brand is widely available in more than 70 countries yet there is a huge opportunity available to further expand in the remaining more than 100 countries.  Organized distribution in growing cities They can focus on the product requirements in the growing smaller cities and have an organized distribution channel to be available in retail chains and small shops as necessary.  Strive for more variety and gift packages They should go for more varieties and innovative products in the chocolate space. Also, with growing demand, the gifting domain needs to be tackled to increase the market share. 1) Strong Competition There are strong competitors like Cadbury, Nestle, and much more available in the industry. All of these are always imposing a threat which demands a continuous innovation in products, advertising, and execution. 2) New Generation is health conscious Being a high-calorie product, the healthconscious population will never choose such a product. It becomes important to come up with a solution to this threat as soon as possible. 3) Ever increasing labor costs This is a constant problem for any manufacturing industry. The labor costs are increasing at a very fast pace which needs to be taken care of on a regular basis.

(Consumer Behaviour, 2012)

Marketing Mix PRODUCT Snickers is a popular chocolate brand available world over. Snickers falls into chocolate confectionery category, and it has ingredients such as nougat, peanuts, and caramel dipped in milk chocolate. Snickers promises satisfaction to the customers from hunger. It is a chocolate bar, but it is marketed as a snack bar. It has a wide range of product portfolio in its marketing mix with many variations ("Snickers Marketing Mix (4Ps) Strategy | MBA SkoolStudy.Learn.Share.", 2019).

PRODUCT PORTFOLIO Snickers More Choc

Snickers Munch

(Bhasin, 2019) Snickers More Caramel

Snickers More Nuts

Snickers 3X Nuts

Snickers 3X caramel

Snickers X-treme

Snickers Dark

Snickers Charged

Snickers the Lot

Snickers Fudge

Snickers Maximus

Snickers Almond

Snickers Peanut Butter

Snickers Peanut Butter Squared

Snickers 3X Chocolate

Snickers Almond Bar

Snickers Marathon Energy Bars

Cookies Snickers

Snickers Cruncher Bar

Snickers Ice Cream Cone

Snickers Ice cream Bar

Snickers Minis

Snickers Gold

The caloric value of:  25gms bar is 124Kcal  50gms is 248Kcal Some of its products are only sold in specific countries for example:  Snickers the Lot can be found only in Australia and New Zealand  Snickers Vegetarian was launched in India due to the needs of vegetarian chocolates in the Indian market ("Snickers Marketing Mix (4Ps) Strategy | MBA Skool-Study.Learn.Share.", 2019)

PRICE Brand Snickers has targeted people from the all-age group that belongs to middle, upper-middle and an upper-class section of society as its target customer. It is perceived as a health bar with nutritional values that promises great taste. PRICING STRATEGY The company has kept product prices within an Snickers offers $1 for 25gm bar and $2 for 50 acceptable range so that a person can easily gm bar, which is very nominal as per to the make a purchase. competitors. Affordable and pocket-friendly prices have contributed towards larger sales volume and have ultimately resulted in garnering better revenue figures. Snickers has adopted a mid-premium pricing policy for its high-end product like Snickers almond bar, Snickers More Caramel, X-treme, etc.

Among the various pricing strategy, they came up with price bundling strategy that offers buy four 50gms bar and get one free. They provide excellent margins to their big retailers such as Walmart, Tesco, Lidl, Big Bazaar, etc. so that retailers could also do price bundling. ("Snickers Marketing Mix (4Ps) Strategy | MBA Skool-Study.Learn.Share.", 2019)

(Bhasin, 2019) PLACE Snickers has a significant international presence in more than 70 countries like Canada, Italy, Portugal, Israel, Slovakia, Bosnia, Austria, Poland, Egypt, Romania, Germany, Latvia, Australia, New Zealand, Hungary, Norway, India and many more.

CHANNELS (Bhasin, 2019)

DISTRIBUTION STRATEGY Wholesalers & retailers Reaching consumers through:  grocery stores  vending machines  convenience stores  pharmacies  department stores  malls  airport stores  discount stores E-commerce websites A variety of Snickers product are available on Amazon, Flipkart, Paytm, eBay etc. Tier-1 suppliers  are those which sell to Mars directly

SUPPLIERS (Snickers Chocolate, 2013)

Diverse suppliers

Tier-2 suppliers  are companies that sell to Snickers' main suppliers

PROMOTION Snickers have created a high brand awareness with the help of some, mind-blowing commercials with a great sense of humor. Some of its popular taglines are “You’re not you when you are hungry”, “Not going anywhere for a while”, “Get some nuts and “It’s so satisfying”. Snickers has entered several sponsorship deals and became official sponsors of WWE’s WrestleMania, UEFA European Championship and FIFA World Cup. Snickers launched several innovative ads via electronic and print media in television, radio, newspapers, magazines and billboards. It has also taken help of social media platforms like YouTube and Facebook to launch its product campaigns (Bhasin, 2019).

ADVERTISING STRATEGY

Snickers has become famous for their innovative marketing and advertising strategies through which they attract many customers. The overall goal of each campaign was to grow value sales every year and to increase the reach of their message; Snickers has successfully showed that their products are fulfilling, nutritional and convenient, attributes leading the consumer to his desired state. 1995 campaign: “Not Going Anywhere For a 2007 Super Bowl Something Manly” While?” (Bujor, 2015) A series of advertisements which featured someone making a self-inflicted mistake, with the voice-over saying "Not going anywhere for a while? Grab a Snickers!".

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commercial:

“Do

(Clark, 2007) (Peters, n.d.) A commercial showed a pair of auto mechanics accidentally touching lips while sharing a Snickers bar. Realizing that they "accidentally kissed", they start to "do something manly".

Most of the advertisement were done in conjunction This advertisement had several versions where both with the National Football League, with whom men feeling disguised by the kiss start to do manly Snickers had a sponsorship deal at the time. actions, mostly in the form of injury. They are seen: 1. tearing out chest hair, 2. striking each other with a very large pipe wrench 3. drinking motor oil and windshield washer fluid. One memorable advertisement featured a member of Complaints were lodged against Snickers that the the grounds crew at Arrowhead Stadium painting the advertisements were homophobic. field for an upcoming Kansas City Chiefs game in hot, late-summer weather. After finishing one of the end This advertisement was highly criticized, and the zones, and visibly exhausted, one of the Chiefs players public response was negative. walks up to him and says the field looks great, "but who are the Chefs?", showing that despite all the hard Snickers sales went down. work the painter accidentally omitted the "i" in Chiefs. Message: Snickers satisfies hunger and is the ideal The company issued a statement that stating that: 1. This advertisement would stop running on source of energy for people with rigorous activities Target group: young male audience television and on the Web site 2. Their only goal was to capture the attention of Snickers core consumers 3. They did not intend to offend anyone

FOCUSING ON FAME

From 2007 to 2009, growth for Snickers was decreasing compared with other global chocolate brands, both in relative and absolute terms. Snickers was growing but losing market share. Projections showed that if it remained on the same trajectory, the brand would lose its position as the world’s leading chocolate bar. Therefore, the company conducted an analysis to identify the problems that Snickers was facing and what it should be done to improve this situation (Miller, 2016). Why Snickers was losing market share

What Snickers needed (Miller, 2016) Chocolate is an impulse category. At any given Snickers needed a communication platform to work with purchase moment, a consumer is presented with that would enable Snickers to build distinctive brand anything from ten to 100 brand options. assets across all touchpoints. If you want to be the brand that people reach for, you need to be immediately recognizable. Up until 2010, half of all people who bought a Based on this, Snickers needed to replace half of its Snickers bar during one year wouldn’t buy one the buyers every year just to break even next.

The reason behind the hiatus in people’s Snickersbuying habits wasn’t because they didn’t like the brand or had suddenly developed a peanut allergy; it was because they simply didn’t think of the brand or see it when they went into a store.

Snickers needed a communications platform that would be noticed, distinctive and drive salience for Snickers. Growth meant attracting new buyers and reminding those who may have taken a one-year break that it was time to have a Snickers bar again. Everyone already knew Snickers, so Snickers didn’t need simple brand awareness: Snickers needed fame. Millers stated that driving fame—in particular, getting more and more people talking about the brand—would deliver penetration growth and drive sales.

After conducting an analysis of Snickers’ historical penetration and market share data, the company realized that their campaigns did not reflect their analysis of how communication would grow the brand. What was Snickers doing wrong: 1. Snickers had eight different campaigns running around the world. None of these campaigns focused on what had made Snickers a strong competitor to begin with, which was that it was satisfying. Instead their focus tended to be more on what was considered “manly” (York, 2010). 2. Over time, Snickers had become too targeted—focusing exclusively on a young, male audience—and too niche in its appeal. Snickers needed to transform into an iconic US brand with wide appeal (Miller, 2016).

A CHANGE IN THE COMMUNICATION APPROACH OF SNICKERS The company decided that the most important influence in driving fame was to have universal meaning. Whether you are a celebrity working in film, TV or another industry, the key to success is ensuring that everyone can connect with you. This seemed particularly relevant for Snickers, given that just about everyone buys chocolate. Focusing on fame drove a fundamental shift in our communication approach: Where Snickers were

Where it needed to be

Niche

Populist

Young male insight

Universal human insight

Stories that appeal to young guy

Male camaraderie that everyone wants to be part of

Loved by a minority

Talked about by everyone

CAMPAIGN ANALYSIS: “YOU'RE NOT YOU WHEN YOU'RE HUNGRY” Snickers decided to collaborate with BBDO advertising agency to create a campaign that combined hunger satisfaction and the side effects of hunger. Through qualitative research, the agency confirmed that hunger satisfaction was both a key purchase motivator and brand attribute which Snickers could genuinely own. OBJECTIVES What Snickers will provide A universal story delivered through a flexible device that would appeal to both male and female, young and old.

MESSAGE

What it will do (Miller, 2016) This campaign will generate local fame, increase penetration and drive sales.

Message (Miller, 2016), (MacAusland & LaCour-Lewis, 2015), (Bujor, 2015) Snickers realized the “hangry” phenomenon that almost everyone experiences. The campaign focused on the “universal human truth” that people aren’t themselves when they’re hungry. And, when people aren’t themselves, it has a real impact on their ability to continue with their daily activities. “Symptoms” of hunger—lethargy, lack of energy, diva-like crankiness —became the challenges that munching a Snickers would solve. Whether you become cranky, weak or dopey, there are universal "symptoms" of hunger that can prevent a man from living up to the "male code." But you don’t have to be a guy to recognize them. Low blood sugar is no joke and Snickers, the substantial, nut-filled bar that has always been known for satisfying hunger, is the perfect antidote. Snickers wants to be the first thought the consumer has when they’ re hungry and on-the-go.

CONSUMER INSIGHT: Consumers view candy bars as unhealthy junk food that provides no sustenance other than a sweet treat. They don’t crave them when they’re hungry.

BRAND INSIGHT: (MacAusland & LaCour-Lewis, 2015) Snickers doesn’t want to be just a candy bar, it wants to cure your hunger and low blood sugar and make you feel like a normal person again.

PRODUCT POSITIONING STRATEGIES FUNCTIONAL:

SYMBOLIC:

Snickers’ positions use problem solving framework (you’re hungry, slow, tired and loopy, Snickers solves that problem), and a benefit framework (Snickers provides a key benefit to these people to feel normal and onthe-ball).

Belongingness and social meaningfulness: Snickers uses its functional positions to appeal to the male desire to belong to a pack and be socially accepted. When you are hungry, you jeopardize your social common sense and risk your status as a member of a male pack.

These positioning strategies are appropriate because the ideas and key insights can easily connect with virtually anybody, not just young-adult males. Most people live their lives with a need to be constantly

validated by the people around them, and hunger can affect one’s ability to be focused on these often subconscious values. MEDIA STRATEGY The campaign uses integrated marketing communications to reach maximum audience through traditional and contemporary media channels. The media channels used, along with the message, prove that Snickers wants consumers to think of them or buy their product when they’re out and about, and most importantly, hungry. Advertisements convey this message out-of-home, in public areas not just to create awareness, but to change their train of thought that snickers provides a key benefit to getting through your day. At home, the use of clever commercials is meant to change attitude using humor, which influences behavior and awareness. Snickers understands that the male audience reacts well to humor and is easily amused with the usage of overly dramatized messages, and thus will view the brand as a company that is fun, quirky, and witty, and memorable (MacAusland & LaCour-Lewis, 2015).

Media channels TELEVISION

Effectiveness The purpose of the TV ads is to create something so memorable, so that the product can get into the consumer’s long-term evoked set. TV is extremely useful in reaching the campaigns target audience: i.e. the super bowl. These ads are viewed in the home, often away from where Snickers are sold. This strategy is not as effective at changing behavior as it is attitude and perspective.

OUT-OF-HOME ADVERTISEMENTS

OOH advertisements are focused on marketing to consumers when they are “on the go” in public places, in transit, waiting, or in shopping. OOH advertising formats fall into three main categories: billboards, street furniture (such as benches, lamps, walls), and transit (bus stations, train stations, airports). OOH campaign triggers a behavioral response. These ads are a way to reach people and remind them that Snickers can satisfy their hunger.

PRINT ADVERTISEMENTS

Most exclusively used in magazines. These messages and graphics are useful because they can reach a guarantee...