Analysis of Chewing Gum Market in the UK - Essay Example

?Analysis of the Chewing Gum Market in United Kingdom Introduction –Chewing gum Chewing gum is a product which defines mass consumerism. It has become an essential part of the people residing in the UK and other parts of the world. It has become an integral part of a person’s lifestyle and culture. It has entered the market with ferocity. The appeal of chewing gum has attracted consumers of developed and developing countries (Redclift, 2004, p. 02). It has come a long way from being just a personal treat; it is regarded as the “Medical confectionery” in the UK (Redclift, 2004, p. 02). History of Chewing gum In the late twentieth century, chewing gum was exported to the United States of America (USA) from south eastern region of Mexico, known as Yucatan Peninsula. Mexico’s relationship with the USA developed tremendously in relations with the chewing gum market. Apart from modernity and consumer culture, chewing gum also boosts a person’s sporty appearance. Most of the sportsmen were spotted chewing gum during matches, which became a popular concept among teenagers and youth (Redclift, 2004, p. 05). Market of chewing gum in United Kingdom (UK) The market for confectionery in the UK is huge. The per capita consumption of confectionery is 15 kg annually. The chocolate confectionery segment has a market share of 65 % (Gibson and Williams, 2000, p. 265). The sugar free chewing gums are a rage in the UK. Sales of sugar free chewing gums doubled during the period 1993 to 1998. Currently, the market share of sugar free chewing gums is 73 % (Gibson and Williams, 2000, p. 266). The major reasons of increased sales of chewing gum were due to health factors, it was considered healthy for dental reasons and nasal congestion. The Chewing gum market has made interesting developments gradually. Initially, chewing gums were sold in some basic flavours like mint, vanilla and strawberry. Chewing gum has seen some major modifications. Vitamin and mineral enriched sugar confectionery items are being sold in the UK markets like hot cake (Gibson and Williams, 2000, p. 266). The target market of sugar free confectioneries is the diabetic patients. Sucrose filled confectioneries are being replaced with fructose ones (Gibson and Williams, 2000, p. 266). The following chewing gum brands are popular in the UK market: 1) "Big Red" (Wrigley UK ) 2) Big Babol (Perfetti Van Melle ) 3) Trident Halls and Dentyne (Cadbury Schweppes) Market leaders of chewing gum market- Wrigley’s and Cadbury Schweppes The market leaders of the chewing gum market in the UK are Wrigley’s and Cadbury Schweppes (Plunkett, 2008, p. 21). Wrigley’s is a subsidiary company owned by the US company “MARS” it was founded in the year 1891 by William Wrigley Junior (McNamara and Brozyna, 2008, p. 125). Initially, the sales of chewing gum skyrocketed, but in the late 2005 there was a stiff competition from Cadbury Schweppes, who invested heavily in their chewing brands “Trident and Dentyne” (McNamara and Brozyna, 2008, p. 125). Wrigley’s had dominated the chewing gum market for more than 100 years, but the drastic slide in its sales due to increased competiveness from Cadbury Schweppes made them aware of consumers’ changing taste and preferences. Wrigley revamped its marketing strategy and introduced a variety of chewing gums which were tasty and healthy at the same time (McNamara and Brozyna, 2008, p. 126). Wrigley’s continues to devise new marketing strategy. Recently, it has filed a patent to launch a chewing gum that has the effects of mouth wash and the target market would be consumers of all ages (Nieburg, 2013).Wrigley’s has also appointed hollywood actor Antonio Banderas as their brand ambassador (Reynolds, 2013). Key Factors of the External Environment of Chewing Gum Market in UK Economic Factors –The chewing gum market has not been affected due to the recession. This is mainly due to the low price of chewing gums. The consumers have not compromised on their healthy lifestyle. The increase in sales of Cadbury diary milk chocolates and Trident chewing gums has proved this piece of news to be true. Cadbury Schweppes claimed to have a 30% rise in profits in the year 2009 (Kollewe, 2009). Social Factors-Chewing gum has been banned in countries like Singapore. However, in the UK, it has become a part of lifestyle for individuals. Chewing gum not only defines the personality but also has health benefits. In Mexico, novelty toys filled with chewing gums are sold (Redclift, 2004, p. 13). Launch of Wonka chewing gum in UK market The chewing gum market is not only booming but also a preferable market for a novice investor. The low price and easily availability of the product has made it a symbol of mass consumerism. The chewing gum that is to be launched should be targeted to consumers of all age, especially teenagers. The flavors of the chewing gums should range from basic to exotic. Introduction of unique flavors like Avocado, Bamboo, and Sugarcane etc., would incite the potential consumers and may even suit the taste buds of the consumers. The name of the brand would be unique, which can be related well with the mass consumers.”Wonka “chewing gum would be easily associated with the consumers as the name is derived from the famous fiction story named “Charlie and the Chocolate Factory”, where chewing gum was labeled as the most marvelous discovery. Apart from that it has to focus on the basic four P’s of marketing strategy. The four P’s of marketing for this chewing gum would be: References Gibson, G.R., and Williams, C.M., 2000. Functional Foods: Concept to Product. Cambridge: Woodhead Publishing. Kollewe, J., 2009. Dairy Milk Sales Help Cadbury Defy the Recession, [online] Available at :< http://www.guardian.co.uk/business/2009/feb/25/cadbury-chocolate-dairy-milk-treats> [Accessed 21 February 2013]. McNamara., A.J., and Brozyna, M.A., 2008. Contrarian Ripple Trading: A Low-Risk Strategy to Profiting from Short-Term Stock Trades. New Jersey: John Wiley & Sons. Nieburg, O., 2013. Wrigley Files Mouthwash-Style Gum Patent for Bad Breath, [online] Available at :< http://www.confectionerynews.com/Manufacturers/Wrigley-files-mouthwash-style-gum-patent-for-bad-breath> [Accessed 21 February 2013]. Plunkett, J. W., 2008. Plunketts Food Industry Almanac 2008: The Only Comprehensive Guide to Food Companies and Trends. Texas: Plunkett Research. Redclift, M., 2004. Chewing Gum: The Fortunes of Taste. London: Routledge. Reynolds, J., 2013. Wrigley Recruits Antonio Banderas as First Global Ambassador, [online] Available at :< http://www.marketingmagazine.co.uk/news/1169529/Wrigley-recruits-Antonio-Banderas-first-global-ambassador/> [Accessed 21 February 2013]. Read More