Company’s Marketing Strategy And Recommendations For Advertisement Creation: Toblerone SWOT Analysis
SWOT analysis is a framework for identifying and analyzing an organization's strengths, weaknesses, opportunities and threats. These words make up the SWOT acronym. The primary goal of SWOT analysis is to increase awareness of the factors that go into making a business decision or establishing a business strategy. So let's research this topic in more detail in the "Company’s Marketing Strategy And Recommendations For Advertisement Creation: Toblerone SWOT Analysis" paper.
Market Profile
The confectionery market contains any dish or delicacy that is made with sweet ingredients, such as chocolates, candies and other various sugar-based products. An Allied Market Research report shows that the U. S confectionery market was valued at $184, 056 million in 2015 and is expected to reach $232, 085 million by 2025. While Statista denotes that within the U. S market, confectionery sales amounted to approximately 34. 9 billion dollars and is expected to increase by nearly 12% by 2020. The confectionary industry is based off three major products: chocolate, sugar (candies) and gum, the demand in the last decade for confectionary products has increased significantly, the two biggest manufactures in the business has been The Hersey Co. and Mars. Toblerone is currently owned and operated by Mondelez Inc. and is an iconic Switzerland brand for chocolate delicacy.
The chocolate is produced mainly in the heart of Switzerland (Bern) and prides itself on the history of the brand and it’s visual uniqueness. Mondelez Inc. has seen a decline in net revenue the past few years and like many competitors Mondelez has faced price hikes in two staple ingredients of chocolates, in the form of cocoa and milk. During 2017, Mondelez brought in a net revenue of 9. 8 billion dollars (U. S) while 1. 25 billion dollars (U. S) was spent on advertising. Mondelez share of the U. S confectionery market currently stands at 5. 2%, the two biggest competitors, Hershey Co. and Mars control the top market shares at 30. 6% and 23% respectively. According to BusinessWire, the confectionery industry is starting to trend to using chocolates in desserts; in addition, citrus flavors are being added to an array of chocolates to attract more customers. In order to get into the more health conscious consumer, ConfectioneryNews reports that vegetable and chocolate combinations are becoming increasingly more popular, where chocolate bars are now starting to contain vegetables as inspired additions to the ingredient mix. ConfectioneryNews also reports that healthier alternatives in the chocolate mix are being introduced in order to cut down sodium and sugar in the products.
Lastly, the way chocolate is being produced is a key decision making factor amongst potential buyers these days, true ethical and environmental costs matter to today’s consumer and a clean and clear label has never been more emphasized than before.
Company/Product Design
The unique selling proposition for Toblerone is its distinctive visual shape, it features an array of joined triangular prisms that is unique in the chocolate industry. The chocolate company has a rich history, starting with its name, TOBLERONE comes from the creators’ family name “Tobler” which is combined with the suffix “torrone” which is Italian for nougat. Theodor Tobler originated from the Swiss Alps a mountainous homeland which inevitably inspired the iconic shape of the chocolate. Toblerone is made from great ingredients within Switzerland including one of the most impactful ingredients that makes this chocolate brand so popular and irresistible, that is the almond nougat, the almond nougat is what gives Toblerone its unique taste and advantage over many of its other chocolate competitors. In 2012, Mondelez Inc. has multi-billion dollar brands such as Cadbury, Oreo and Milka Chocolate, along with those multi-billion dollar brands the company also owns a number of power brands, all these chocolate brands including Toblerone has amounted to a global net revenue of 35. 2 billion dollars (U. S). When looking at growth rates for the company, Mondelez Inc. is up 5. 41% from last year while the industry (Confectionery) is up 2. 78%. The expected revenue growth in 5 years for Mondelez Inc. is expected to be 20. 34%.
Current Advertising of Key Competitors
Hershey: The leading company in confectionery sales is Hershey, they pride themselves on having numerous different flavors and ingredient combinations when it comes to their chocolate. Advertisements are based off this. In addition, Hersey will use slogans such as “There’s a smile in every Hershey bar” or anything along the lines of being happier after purchasing/consuming the chocolate bar. They claim that the chocolate will make yourself and others around you happy in its presence, this is the basis of their advertisements and slogans. The advertisements for Hershey seem to try and build on an emotional connection with the consumer delivering advertisements that console and tie the customer in by means of empathy.
Mars: Mars is another leading company in the confectionery business, one of their very popular chocolate bars, Snickers, their slogan hasn’t changed for the past few years, letting many know that “You’re not you when you’re hungry. ”, the slogan is followed by “Snickers satisfies”. The advertisements have been known to include famous sport stars and actors/actresses to appeal to customers.
Lindt: A more luxurious chocolate one for consumers of higher household income and ones that prefer to treat themselves may turn to Lindt. The Lindt provides “excellence through indulgence” they pride themselves on high-quality chocolate for a higher price. Many consumers will put Toblerone somewhere between Lindt and the first 2 (Hersey and Mars).
Target Market Profile
Demographics: Toblerone actually targets groups of all ages even though it is shown that majority of their sales come from ages <33 years old. It has targeted middle to upper class people for its chocolate as it has brought a title of being a somewhat luxurious chocolate delicacy. Men and women with children are also targeted. There are no specific gender, education, ethnic groups or relationship statuses that Toblerone targets.
Psychographics: Chocolate lovers are the main targets here, consumers who want a comfort snack are also targets here. When customers are often at an aisle or checkout line, this is where Toblerone could also be purchased.
Geographical: There is no specific target for place, although Toblerone prides themselves on their Swiss heritage their chocolate is advertised and bought from all around the U. S. Toblerone may target areas where convenience/supermarket stores are heavily populated. Also places with medium to high average household income holds promise for a well-targeted group.
Behavioral: Chocolate sales tend to spike during holiday times, this is where customers are targeted during holidays such as Valentine’s Day, Easter, Mother’s Day, Christmas etc. Toblerone is often as a gift during these seasons.
Quantitative Advertising Objective or Goal of the Campaign
Since the target market for Toblerone is chocolate lovers, this advertising campaign focuses on connecting with those who indulge in chocolate. The goal of the campaign is also to convey the message that Toblerone is a chocolate brand that gratifies itself on the high quality ingredients and making of each chocolate bar. Their slogan is “Don’t you wish all triangles were made of Toblerone” this slogan tries to empathize with those who indulge in chocolate giving them a delicacy that cannot resist.
Positioning Strategy Statement
Toblerone positioning strategy statement promises a unique taste in a distinctive form. Toblerone creates fine chocolates that deeply root their Swiss heritage using delectable ingredients such as almond nougat to attract customers from near and far. The company invites customers to taste their fine triangular chocolates made from the finest ingredients making customers wish that they had more. Toblerone targets middle to upper class segment of society, and it promises that quality matches the price for the bar of chocolate each customer receives, the company based in Switzerland refuses to compromise its quality. With quality being an assurance, almost 98% of Toblerone chocolates are exported, making this chocolate brand one of the most influential chocolate bars of all time.
Creative Objectives
The primary objective is to persuade the audience to buy and consume the delectable chocolate of Toblerone. This objective is done by conveying the message that Toblerone is not just a convenience chocolate for comfort but also a luxurious chocolate that can be used in recipes such as a prestigious fondue. The addicting taste of the almond nougat and Swiss ingredients is communicated in the advertisement in the form of a slogan. “Not many people make it to Step 2”, this slogan challenges chocolate lovers who intend to make the fondue recipe to not consume the chocolate bar itself before completing the fondue recipe in its entirety. It also aims to show that it can be used to share amongst other people and create bonds/memories. The chocolate bar is so unique in shape that it gives customers also unique ways to indulge in their chocolate fantasies, you can make a fondue out of the bar or eat the chocolate bar before making the fondue, what you do with it is your choice that’s the message they are trying to convey. Toblerone uses a combination of pristine ingredients such as fine cocoa, milk, almond nougat and honey, the attention to detail for the high quality chocolate bar shows that one can have a blissful luxurious experience by making a fondue out of the chocolate itself, something that Hershey or Mars will never advertise or promote. The claim that Toblerone is so delicious and addictive is supported by the slogan “Not many people make it to Step 2”. In the ad, Toblerone aims to show that the chocolate can create memories and have people come together. Three pieces of fruit on three toothpicks and the bottom line in the recipe “makes 2 cups or 16 servings…” shows that Toblerone is a great and effective way of building relationships with one another through chocolate whether that’s breaking it up triangle by triangle or sharing a fondue.
Creative Strategy
This ad is a simple yet complex at the same time, a person can catch the ad at the glimpse of their eye to recognize the delectable fondue and the iconic wrapper of the Toblerone chocolate bar. Chocolate lovers and those who have a sweet tooth instantly can relate and desire a piece of the chocolate. Since this ad was placed in a food magazine, food-lovers, cooks, chefs, foodies etc. may be attracted to the recipe itself and realize that Toblerone can be used for more than just a comfort snack. It is a very appealing technique that is used. For those looking for something to share at a gathering, the three pieces of fruit and toothpicks gives insight to those people letting them know that Toblerone can be used in multiple unique situations. The cursive and simple font used in the slogan “Not many people make it to Step 2. ”, shows that the ad isn’t being bold or instructing you on anything. The ad campaign is simply letting you know of something. The focus on the fondue, slogan, recipe and Toblerone bar shows people the main attractiveness of the ad campaign. The colors used in the ad aren’t vibrant just very mellow and has a warm feeling to it, supporting the claim of it being a luxurious, high-quality chocolate something to spend your time indulging in. The tone of the ads should warm, sophisticated yet clear, not too much going on but enough to get the point across. They should evoke the feeling of relaxation, pleasure and comfort.
Creative Execution
I would add more than just three pieces of fruit in the ad to emphasize that Toblerone is made for sharing, it has a unique taste with a unique look for many different situations. Instead of placing the Toblerone bar in the bottom right, I would make it stand out a little more by enlarging it and putting it more center and to the left of the recipe, make the bar standout and show that the fondue came from the Toblerone. The recipe is very short and concise which makes it easy to read and execute, the font is the right type and right size, there’s not much I would change about that. When showing off the Toblerone bar itself, the distinct look of the chocolate bar inside the case makes it iconic and unique, so in order to present that I would show half off the bar “TOBLE” in the casing and the other half of the chocolate “RONE” itself ready to be broken up into separate triangles. This will show off its distinct shape and give the audience a choice do they want to make the fondue or simply eat the chocolate presented in front of them. The shape of the bar and its packaging is what makes it so distinct from other chocolate products, it’s what catches your eye in ads and in the aisles/checkout lines of supermarkets and convenience stores. The shape of the box gives it flexibility where the consumer can pack it to go during travel, have it right there and then, they have options since the bar will be hard to break/melt or crack due to the box casing. This is also why Toblerone can export their products safely due to the casing.
To reiterate, I would make the Toblerone bar the star of the advertisement by putting it more center towards the ad and showing off both the unique external and internal properties of the chocolate bar itself.
