Discuss about the Marketing And Innovation Strategies For A New Product Launch: WRIGLEY’S 5 GUM.
The current assignment focuses on the marketing and innovation strategies for a new product launch. In the current assignment, WRIGLEY’S 5 GUM had been taken into consideration. It had been launched in the USA market in the year 2007 with an aim of providing the customers with a healthy alternative. Wrigley’s is the world’s leading manufacturer of chocolate, chewing gums, mints and fruity confectionaries etc. It has its operations spread across 70 countries and is famous for manufacturing some of the known brands such as snicker’s, skittles, orbit etc (chiefmarketer.com 2018).
However, before the launch of a new product a number of steps needs to be undertaken which are analysis of the market trends, understanding of the customer choice or preferences. Therefore, taking some of these factors into consideration the marketing plan for a brand or a product could be developed.
The objective of the assignment is to-
WRIGLEY’S 5 GUM is the new chewing gum of 5 calories, a product of MARS WRIGLEY CONFECTIONERY, launched in 2007 in US market. This sugar free stick gum product is more than just a gum brand and manufactured to stimulate senses and give people a whole new experience. The name 5 on the product indicates stimulation of five senses (Wrigley.com. 2018).
For a product to receive success within the competitive market it is necessary to develop an idea regarding the customer trends. Some of the customer trends which were emergent during the launch year of the products were – going sugarless, healthy teeth etc. Therefore, based upon the current preference of the target customer segment the marketing plan was further developed. The chewing of gums had been found to be predominant within the teenagers. Hence, the young adults or the teenagers formed the target customer segment. In the order to evaluate the customer trends it necessary to understand the various factors guiding the purchase of a product. Some of the factors which make teenagers prefer chewing gum are the relaxation produced by the chewing gum; they help in controlling bad breath, help in avoiding snacking, clear nose and throat, as well as protect the teeth from decaying activities.
The chewing of the gum has been seen to reduce anxiety by normalising the balance of serotonin and dopamine in the brain. As mentioned by Nikolova and Inman (2015), the chewing activities have been seen to reduce the anxiety levels by decreasing the synthesis of cortisol. The stress relief occurs and instantly and has long term effects. The flavoured gum has been seen to cause arousal in the memory and learning centre of the brain helping in generating quick reaction. In the recent times, there is growing concern regarding the consumption of excess sugar rich diets. Reports have proved that excess consumption of sugar is associated with weight gain and digestive disorder. For example sugar rich diet has been seen to promote the development of conditions such as Gastroeosophagul Reflux disease (GERD) in people. Excessive comsumption of sugar have been seen to cause tooth decay alongside prevent bad breath; therefore, sugar free mint rich gums provide one with healthy alternative (livingwithgastroparesis.com 2018).
The Wrigley’s products have also been approved by the American dental association which mentioned that the chewing of the gum prevents tooth decay by controlling the formation of plagues. The chewing of the gum stimulates saliva secretion, which contains a number of digestive juices; hence aids the process of digestion. Additionally, as reported by teens who have been regularly consuming Wrigley’s gums, that is available in 15s in a single pack with a slim design. Hence, they are easy to be fitted inside the jeans as well as the long lasting smell makes them a hit among the target customer segment (chiefmarketer.com 2018). The long lasting smell stimulates all the five senses which further help one in relaxing further.
The ingredients of the product are Sorbitol, Glycerol, Gum Base, Natural and Artificial Flavors, Mannitol, Less than 2% of: Hydrogenated Starch Hydrolysate, Acesulfame K, Aspartame, and BHT (to Maintain Freshness) (Wrigley.com. 2018). This ingredient served the needs of the teenagers who were attracted to chewing gum. It also serves the needs of diabetics who are not supposed to take sugar (Sylvetsky and Rother 2016.). Sorbitol used in the gum has less affect on the blood sugar level. Sugar along with glycerol and mannitol adds to just 3 calories per serving. Gum base also gives smooth soft texture making it easier to chew and enjoy by reducing tackiness (Sato et al. 2010). Thus without sugar these ingredients creates tasting gum. These ingredients are also known to prevent tooth decay and freshen the breat due to flavours like mint. These ingredients with tasty favours and variety of colour stimulates all five senses of human body making it pleasure to eat gum and not just throw it away. For instance, Mannitol a low calorie sweetener, is fermented in large intestine to short chain fatty acids and gases that provides energy on absorption. These products are easily digestible. On the other hand Aspartame is also recognised by FDA as safe. The selling of gum product increases, when they are enlivened through dyes from natural sources. The presence of sugar alcohol is good for oral health as they are not metabolised by oral bacteria (Barkalow et al. 2014). Acesulfame K, is also FDA approved product used as artificial sweetener with zero calories. Similarly, Glycerol has the low glycemic index and retain proper moisture to make the gum flexible. It makes it easy for even people with denture to chew. Thus, these ingredients make the product edible by people of all ages (Sylvetsky and Rother 2016).
As consumer shift to healthier, natural and fresh food, Wrigley also moves to healthy food trends by innovation. It can be concluded from the above discussion that the ingredients of the products are well linked with the consumer trends. The variety of new flavours leads to line extension as entirely new product was created by slight modification to existing one while taking into considerations of the health needs of people (van buul and Brouns, 2015). Therefore, the new product launch is sure to increase demand and sales as it does not compromise on the texture, taste and health.These ingredients greatly match the health needs of teenagers, young and older adults while stimulating all five senses giving long lasting experience.
In order to launch a product it is necessary to access the data on market trends. In the year 2015, the global chewing gum market sales have amounted to 25.83 billion US dollars (Hansen and Grunow 2015). Wrigley’s is one of the most successful companies when it comes to sell of confectionaries. Most of the companies worldwide have gained their profits though merger and acquisitions where they are providing a platter full of diverse consumption items for the target customer segment. Wrigley’s continue to earn its profits from the sale of chewing gums alone. However as mentioned by Yu and Kim (2017), due to lack of diversity the investment professionals consider the company to be outright boring. The ability of Wrigley to produce consistently positive results and pay shareholders a dividend has earned it the reputation of one of the best run companies of America. It has seen exponential growth rate from 1980 onwards to 2016. However, very recently there has been a rise in the number of other similar market players such as the Trident gum which scores the second rank in the world for chewing gums and has annual revenue worth $1 billion (Rubera, et al. 2016). Hence, based upon these much emphasis needs to be place upon the product development in the current market for which a number of effective strategies and gimmicks needs to be developed.
The market trends could be further analysed with the help of ansoff’s growth matrix which could be further divided into a four different components such as market penetration strategy, product development strategy, and market development strategy and product diversification. The ansoff’s growth matrix helps in determining the possible growth strategies for the organization. The four parameters of ansoff’s matrix help in analysing the market trends by the collection of specific data sets.
Through the market penetration strategy a company or brand focuses on its existing group of customers and provides them with more convenient options based upon their preferences (Parsons et al. 2016). This is crucial to prevent the customers from purchasing products from the competitor groups. Complimentary offers such as provision of an extra packet of Wrigley chewing gums on purchase of two such packets (Liedtka 2015). As mentioned by Villaroel Ordenes et al. (2016), such intelligent pricing policy not only helps to recover the cost but also helps in attracting diverse and huge customer base.
The second stage is the product development stage where company focuses upon modifying or re-developing the existing product to meet the changing demands of the target customer segment. Therefore, the Wrigley’s aims to experiments with the flavours of the chewing gums which can appeal differently to different target group of customers.
The third stage is the stage of market development where the company aims to enter unexplored marketing niche by using effective pricing policy and promotional activities. The Wrigley’s uses some of the channels such as audio-video mode advertising and social media for the promotion of its new product 5 Gum at this stage. As mentioned by Lipizzi et al. (2015), using the properties of search engine optimization a product could be sold across wider customer base. It also helps in providing maximum exposure to a product by making the public informed of its different varieties and forms.
The diversification is the stage which involves both product and market development. It is the most vital stage and consists of the maximum market risks. As mentioned by Edwards (2015), the risks are compensated by high returns if investment.
The Boston consulting group (BCG) product portfolio matrix is used over here in order to develop a long term strategic plan for the organization. Additionally, the BCG matrix could be used to measures the market performance of a product. It helps in planning of growth opportunities for a business by reviewing its portfolio of products. The BCG matrix could be further divided into four quadrants which are-star, question mark, cash cow and dog. The question marks determine the products in high growth market with low market share. The question mark refers to the initial stage when the product is developing or yet to capture the market fully or completely. The star shows that both the growth market and market share are in high positions. The star is referred to be the best position and is signified by the rising stage of the product. Cash cows indicate that the products are in low growth market but the market share is high, whereas dogs display low positions with respect to both market growth and product share. As mentioned by Palia et al. (2014), at the cash cow stage the market growth rate is comparatively stagnant and offers little opportunity for the product to expand it niche. The dog corresponds to the dying out phase of the product. It is at this stage that the product seems to exist or generate any significant reaction within the target customer segment. The 5 gum here occupies the star position which is signified by a high growth and high market share. However, the changing market dynamics can question the survivability of the product of brand within the current market (Bitner et al. 2015). Hence, modification of the products at all stages is required to maintain high market standards.
The study here focuses upon the aspect of marketing and innovation of a product or brand within a current marketing niche. In the present study, the Wrigley’s enterprise produced 5 GUM had been taken into consideration. The changing view towards health had brought about a change within the customer and marketing trends such as production of sweetener for gums. The change in the customer demands have resulted in significant change in the marketing techniques of the Wrigley’s confectionaries. Though, some of the changes have been beneficial, the rest had failed to produce required and significant reactions in the target customer segment. Hence, focussing upon the objectives of market development the 5 GUM needs to re-enforce some of its advertising and marketing promotional strategies.
However, being a long stayed chewing gum brand in the market segment the Wrigley’s 5 Gum has its faithful lot of customers. However, with more and more emergence of similar market players such as trident gum there is increased competition to the survival of the brand in the current market. Hence, constant revaluation and modification of marketing strategies are required. This could be done by focussing more upon the changing customer demands which helps in designing of an effective marketing plan. Additionally, focussing much upon the advertisement and promotional strategies can also help in attracting the target customer segments. For example, the use of social media had gained importance in the current century and has wonder outreach. Therefore, using some of these advertising and marketing channels can help in attracting wide customer base along with developing sufficient awareness regarding the product.
References
Barkalow, D.G., Soto, M.A. and Reed, M.A., Wm Wrigley Jr Co, 2014. Non-crystallizing syrups containing sorbitol and their use in chewing gum. U.S. Patent 8,685,474.
Bitner, M.J., Patr?cio, L., Fisk, R.P. and Gustafsson, A., 2015. Journal of service research special issue on service design and innovation: developing new forms of value cocreation through service. Journal of Service Research, 18(1), p.3.
chiefmarketer.com 2018, chiefmarketer.com , Availanble at : https://www.chiefmarketer.com/wrigley-targets-teens-with-5-gum/ [Accessed on 29 April 2018]
Edwards, G.N., 2015. Market share, profitability and implications for strategy formulation, pp. 105-225.
Hansen, K.R.N. and Grunow, M., 2015. Planning operations before market launch for balancing time-to-market and risks in pharmaceutical supply chains. International Journal of Production Economics, 161, pp.129-139.
Liedtka, J., 2015. Perspective: Linking design thinking with innovation outcomes through cognitive bias reduction. Journal of Product Innovation Management, 32(6), pp.925-938.
Lipizzi, C., Iandoli, L. and Marquez, J.E.R., 2015. Extracting and evaluating conversational patterns in social media: A socio-semantic analysis of customers’ reactions to the launch of new products using Twitter streams. International Journal of Information Management, 35(4), pp.490-503.
livingwithgastroparesis.com 2018, livingwithgastroparesis.com, Available at : https://livingwithgastroparesis.com/chewing-gum-digestion/ [Accessed on 28 April 2018]
Menguc, B., Auh, S. and Yannopoulos, P., 2014. Customer and supplier involvement in design: The moderating role of incremental and radical innovation capability. Journal of Product Innovation Management, 31(2), pp.313-328.
Nikolova, H.D. and Inman, J.J., 2015. Healthy choic-e: the effect of simplified point-of-sale nutritional information on consumer food choice behavior. Journal of Marketing Research, 52(6), pp.817-835.
Norman, D.A. and Verganti, R., 2014. Incremental and radical innovation: Design research vs. technology and meaning change. Design issues, 30(1), pp.78-96.
Palia, A.P., De Ryck, J. and Mak, W.K., 2014. Interactive Online Strategic Market Planning With the Web-Based Boston Consulting Group (BCG) Matrix Graphics Package. Developments in Business Simulation and Experiential Learning, 29, pp.56-85
Parsons, E., Maclaran, P. and Chatzidakis, A., 2017. Contemporary issues in marketing and consumer behaviour. Routledge, pp.105-212.
Rubera, G., Chandrasekaran, D. and Ordanini, A., 2016. Open innovation, product portfolio innovativeness and firm performance: the dual role of new product development capabilities. Journal of the Academy of Marketing Science, 44(2), pp.166-184.
Sato, Y. and Nagaoka, Y., Nagaoka Co Ltd, 2010. Chewing gum base composition. U.S. Patent 7,820,213.
Sylvetsky, A.C. and Rother, K.I., 2016. Trends in the consumption of low-calorie sweeteners. Physiology & behavior, 164, pp.446-450.
Villaroel Ordenes, F., Ludwig, S., Grewal, D., de Ruyter, K. and Wetzels, M., 2016. Analyzing online reviews through the lens of speech act theory: implications for consumer sentiment analysis. Journal of Consumer Research, pp.25-33.
Wrigley.com. 2018. Wrigley.com.au : Ingredients. [online] Available at: https://www.wrigley.com/aunz/about-us/ingredients.aspx [Accessed 30 Apr. 2018].
Yu, U.J. and Kim, J., 2017. Comparisons of Financial Performance Measures of Global Sourcing and” Made-in-USA” Domestic Production Strategies.
Essay Writing Service Features
Our Experience
No matter how complex your assignment is, we can find the right professional for your specific task. Contact Essay is an essay writing company that hires only the smartest minds to help you with your projects. Our expertise allows us to provide students with high-quality academic writing, editing & proofreading services.
Free Features
Free revision policy
$10Free bibliography & reference
$8Free title page
$8Free formatting
$8How Our Essay Writing Service Works
First, you will need to complete an order form. It's not difficult but, in case there is anything you find not to be clear, you may always call us so that we can guide you through it. On the order form, you will need to include some basic information concerning your order: subject, topic, number of pages, etc. We also encourage our clients to upload any relevant information or sources that will help.
Complete the order form
Once we have all the information and instructions that we need, we select the most suitable writer for your assignment. While everything seems to be clear, the writer, who has complete knowledge of the subject, may need clarification from you. It is at that point that you would receive a call or email from us.
Writer’s assignment
As soon as the writer has finished, it will be delivered both to the website and to your email address so that you will not miss it. If your deadline is close at hand, we will place a call to you to make sure that you receive the paper on time.
Completing the order and download