situational analysis
DESCRIPTION
Strategic planning for future progress for Wrigley's Juicy FruitTRANSCRIPT
Elizabeth PagorekDeveloping a Market PlanJuicy Fruit Analysis
Market Analysis.
Industry
Juicy Fruit is a flavor of chewing gum made by Wm. Wrigley Jr. Company, which is a
manufacturer of sugar chewing gum and other confectionery industry. This 100-
year-old company, which goes by Wrigley’s, has been producing confectionary
products since 1891. Chewing gum has been around since the early 1800s and
consistently changes through the years. The best part about chewing gum is you can
find it in any convenience-shopping store around the corner. In 2002, the Wm.
Wrigley Jr. Company generated net sales of $2.7 billion, which is a 14.4% increase
from 2001. In 2012, Wrigley’s brand value was worth $4.4 billion dollars.
(Market Share Reporter-United States Confectionary)
History
The Wrigley Company introduced Juicy Fruit in 1893 and gain popularity in 1946.
The increase was after World War II with Wrigley’s “Remember this Wrapper”
advertisement campaign, which was for the troops. The gum consisted of sugar,
gum base, corn syrup, natural sweeteners, and more. Juicy Fruit is one of the oldest
brands in the Wrigley family; it is the number one fruit gum brand in the Unites
States for children. Wrigley is the world’s leading manufacturer of chewing and
bubble gum. Juicy Fruit is sold across the globe within Canada, Germany, Thailand,
Malaysia, China, and Hong Kong. Wrigley’s leading market position and brand
name facilitate strong product recognition, customer loyalty and a significant edge
over its competitors.
Situational Analysis.
Market Definition
According to Datamonitor, the market for gum confectionery includes any flavored
gum, which is chewed but not swallowed. This includes both sugarized and sugar-
free gum, as well as medicated gum with dental or breath-freshening benefits. Since
peaking in 2009, U.S. gum sales have fallen 11 percent to $3.71 billion last year,
according to market researcher Euromonitor International.
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Product
Juicy Fruit is the oldest brand in the Wrigley family, introduced in 1893. It is a
flavor of sugary chewing gum. The confectionary is a one-of-a-kind type flavor that
satisfies a craving for something sweet. Juicy Fruit can be bought as the Original or
sugar free. The product comes in an array of flavors; they are Original, Sweet Fruit,
Groovy Fruity, Juicy Tropical, and Sweet Riddle.
The brand comes in a variety of packaging to fit each consumer’s need. The
packaging consists of a slim pack, 5-stick pack, Big-E-Pak bottles, and 18-ct Split
pack. With all that said, Juicy Fruit has had tremendous brand attributes for over
100 years; Fun, outgoing yet weird, but unique in flavor, Juicy, yellow.
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Price
Wrigley’s Juicy Fruit chewing gum comes in an array of flavors that all vary in size.
As each of the size differs so does the price. Juicy Fruit can be purchased for a $1.00
all the way to $15. A buying rate is a number of items purchased during the time
period covered by the selected date source usually by the buyer. As shown on
Nielson Spectra, Juicy Fruit’s product diagnostics’ compared to all other brands
(127.29) has a buying rate at 60.35 or 47%.
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Place
Juicy Fruit products can be bought in numerous places. The brands top channels
that purchase Juicy Fruit are groceries, mass merchandisers, drug stores, and others.
Nielson Spectra, shown below, shows the top channel summary with total volume.
Examples
Grocery Stores: Jewel Osco, Dominic’s, Whole Foods, etc.
Mass Merchandisers: Wal*Mart, Target, etc.
Drug Stores: CVS Pharmacy, Walgreens,
All Others: Gas stations, online, local shops, train stop shops
Wrigley’s Juicy Fruit in 2010 had a market share of 11% at food stores, drug stores,
and mass merchandisers. Doublemint had 18.3%, Spearmint had 8.9%, and Big Red
had only 7% of the market shares (Market Share Reporter by Business Essentials)
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Promotions
In 2011, Wrigley Juicy Fruit created a promotion, that was a campaign called “Serenading
Unicorn”. The strategy is from left field, with a unicorn puppet, literally singing popular
songs with several celebrity performers.
Like “Gangsta’s Paradise” by Coolio ft. L.V.
showing audiences the “Sweet Life”
consumers can have when chewing Juicy
Fruit, “Gotta have sweet”.
In 2012, Wrigley Juicy Fruit came out
with a mobile app, called “Sweet Talk”.
Engaging a fun application where
consumers choose from numerous
“mouths” along with hilarious quotes.
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A unique new take on a way to take and share pictures!
Trends
Forbes.com stated six trends that will shape consumer’s behavior this year, one of
the trends was named, “Escape”. Escape from a world of grown up responsibilities,
bills, children, mortgage, jobs, insurance, etc. We are seeing an increase to let go, let
loose, have fun, and indulge in childlike freedom or sheer hedonistic joy! Having
responsibility is the duty or obligation to act. Taking responsibility is acknowledging
and accepting the choices you have made, the actions you have taken, and the
results they have led to. This trend needs to be portrayed within the new campaign
to the hopeful segments a younger demographic of the cosmopolitan centers,
suburban, and the comfortable country. Audiences should feel like its okay to let go
of responsibilities every once in awhile. You should always take time for yourself.
(http://www.forbes.com/sites/onmarketing/2014/02/04/six-trends-that-will-shape-consumer-
behavior-this-year/)
Customers
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The chart below shows that Juicy Fruit was not the highest bought brand out of the
top competitors. The brand is slowly rising throughout the years at about the rate
of 2%-5%. Their shares move up about the same rate as all the other brands.
Chart of Retail SharesBrands 2009 2010 2011 2012
Juicy Fruit 10.8% 11% Estimated 21.8%Double Mint 16.3% 18.3% Estimated 34.1%Spearmint 8.4% 8.9% Estimated 10.8%
Other 22.8% 21.2% Estimated Estimated
Out of all the consumers who chew gum almost a fourth of the people chew
Wrigley’s Juicy Fruit, which again is shown on products’ diagnostic.
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The average buying rate for Juicy Fruit
consumers is 60.35 compared to the total
category of 127.29, which is 47% of the
almost half of entire category.
Nielson Spectra also shows that younger bustling families, which consists of two
adults and six or more children like to buy Wrigley Juicy Fruit. These candidates
mostly reside within the segment plain rural living, with an index of 230.
Information also shows on Spectra that 27% of the total consumption, by customers
that have children ages 6-17 years old.
Buying Rate
Juicy Fruit
Category
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Demographics
Juicy Fruit consumption varies between households. The most important
demographic attributes are household composition, race of head of household, and
household income.
-Household composition was a high index of 197 being a female head only with kids.
8.1% of Juicy Fruit users are considered to be moderate blue-collar towns.
-7.2% of users are from a struggling background living
-5.9% of users are moderate country living
-30.2 % of Juicy Fruit Head of households had some sort of college education.
-The highest of household incomes of Juicy Fruit users are between $20,000-29,000
-A high index of ages 6-17 years old.
-67% of Juicy Fruit users were white, while black consumers had an index of 146.
-20% of Juicy Fruit consumers reside in South Atlantic and 18% are from East North
Central
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Needs
Physical Need: Chewing gum after eating a meal, is a way to increase salivary flow.
This is a way to wash away the acids, which are produced when bacteria found in
plaque break down foods. Acid on teeth can break down the tooth enamel, which
can cause tooth decay.
Sociological Need: It has been established
in society that chewing gum makes you
cool, relaxed, easy-going, and having more
of a
desirable
impression. Social experiments have been done
with this notion, consumers also see it in Hollywood
movies, like the film, “Clueless”. Popular characters
are always viewed aimlessly chewing gum like
second nature.
Psychological Need: Chewing gum is an effective tool. It is said that the act of
chewing gum wakes us up. Allowing consumers to be focused on the tasks at hand.
Gum allows you to concentrate on tests or important projects. Chewing gum helps
to exceed expectations and enhance goals while achieving better breath.
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Prospects
Wrigley Juicy Fruit shows potential for having a higher markets with cosmopolitan
centers, suburban, and the comfortable country and mostly with a younger
demographic. When you look at the chart below, there is indication that this
statement is true. There is a relatively high index with bustling young families,
sitting at 131, 130, and 143. Campaigns reaching these segments could result in
growth to the brand’s revenue.
Juicy Fruit product life cycle shows
that there was a high point of
maturity and a steady decline
phase. Juicy Fruit can change their
status quo with the new
demographic to start the
introduction process of their
product life cycle.
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S.W.O.T.
Juicy Fruit Analysis
Strength: Juicy Fruit is a widely known brand name and successful industry, quality
products with great taste and packaging, easily accessible, unique flavor, and
promoted for fun and health.
Weakness: Rival brands are more acknowledge, a negative image on gum in
general, gum sales have dropped 11%, branding is low.
Opportunities: Future developments in new demographic segments, better and
more varieties of packaging with flavors, untapped markets.
Threats: Top competitors: Doublemint, Spearmint, and Big Red chewing gums
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Competition
The chart above shows Juicy Fruit’s million dollar sales in 2013, along with the
brands three top competitors, Doublemint, Spearmint, and Big Red chewing gum.
There are numerous companies and brands of chewing gum. The three top
competitors of Wrigley Juicy Fruit are: Big Red, Doublemint, and Spearmint chewing
Wm Wrigley Jr. Company
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After reviewing Juicy Fruit’s product snapshot, from Nielson Spectra, I have realized that
the main competitors are within the company, Wrigley’s. They are Juicy Fruit’s top
competitors because the three have high indexes and high volumes for consumer’s total
consumption. The most important competitor would have be Wrigley’s Doublemint,
because according to the chart, that brand shows the highest percentage on indices and
volume for customers.
Chewing Gum Strengths Weaknesses
Doublemint Well known brand, variety
of packaging, sugar and
sugar free brand
One flavor, little promotion,
quickly loses flavor
Spearmint Classic taste, well known
brand
One flavor, few packaging
options
Big Red Bold taste, variety package
options, fresh breath
One flavor, little promotion
P.E.S.T. Analysis.
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Political: Huge influences on many businesses practices are federal rules and
regulations. Political realms, legislature, have a final say what is released to the
market. Chewing gum is one of the most closely regulated food products in the
world. The safety of chewing gum ingredients is scientifically supported and
accepted under international regulations and standards. These standards are set for
society to be protected and prevented from future health hazards.
Economic: High interest rates generally are perceived as not great for the stock
market, but an early stage of interest rate means the stock market tends to do well.
As consumer products continue to raise prices, like chewing gum, the cost of living
will also continues to increase in time! As long as the company wants to be
successful, prices will progress to increase as the always-changing economy grows.
Sociocultural Factor: Average men and women Americans spend a numerous
amount of their time at work or careers. The average employed person is now on
the job an additional 163 hours, that is one month of a year! Almost three out of
every four respondents said they work more than the presumed normal 40 hours
per week (Salary.com). As long as there are workaholics to set standards the reality
is it forces others to meet the needs of a culture. These people have an expected
lifespan time of about 84 years old. Over the years this group income increase, as
well as responsibilities in life. Most people like an easy escape from such a period.
Technology: Wrigley Juicy Fruit has already step foot within the technology era in
order to compete with outside competitors. The recent campaign of, “Sweet Talk”
the phone application, ended up with high and numerous ratings. With knowledge
of that field, the opportunities to market specific content to specific area are endless.
The option of communicating with many consumers in order to better the product
for a market that likes to design their needs.
Growth & Opportunity
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Juicy Fruit total consumption resides mostly in the “plain rural living” segment.
When observing Juicy Fruits total consumption by indices, which are compared to
the brand’s top three competitors, it would beneficial for Juicy Fruit to gain market
shares across numerous segments. Patterns by the top competitors show more
consumption rates for many segments within small scale, younger bustling, and
older bustling families (these categories have six or more children present). By
using certain trends on new demographics, Juicy Fruit could appeal to new markets
and raise brand awareness and sales.
Top left: Juicy Fruit Top right: Big Red
Bottom left: Doublemint Bottom right: Spearmint
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Target Audience
Juicy Fruit has an opportunity to gain brand awareness and trial in a new segment
with average volume and indices. The new demographic target will be small, young,
bustling families with children in cosmopolitan centers and suburban areas. The
channels can consist of groceries, mass merchandisers, and a new area clubs, like
Costco and Sam’s Club.
Platform
In order to gain a path of growing cost, Juicy Fruit needs to extract the characteristic
of a joy of living. Which is the ability to approach life in a positive way, living each
moment to the fullest with hope and a sense of humor. Even if it is just for a short
minute with a piece of Juicy Fruit many options. With gained brand recognition and
the extra new push, Juicy Fruit revenue will increase.
Key Message
Juicy Fruit is the oldest brand, has the most attributes, variety of sizes, more flavors,
and sugarless options than the other Wrigley Brands. By developing knowledge of
the products competitors, outcomes are learning good decisions for Wrigley’s Juicy
Fruit as a brand. As all the previous information is absorbed, Juicy Fruit is displayed
a hopeful game plan. Juicy Fruit has an opportunity to market to small, young, and
bustling families with children present in cosmopolitan centers and suburban areas.
By competing in similar segments, with Juicy Fruit top competitors, the brand can
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