INTRODUCTION :

Who has never eaten gummy bears or strawberry Tagada? Whatever our preference we have already eaten all the candy from Haribo.
Haribo has established itself as a reference point on the candy market with essential products: Pooh, Strawberry tagada, dragibus.
These products are on the market since 1986, and Haribo have becoming with them an important competitor.

Wehave decided to create a new candy, “The Splash”
Our product, The Splash

We want to create a new candy just for children. But, it is not a simply candy, it’s much more than that, this candy allows children to stay focused and be more effective in class.

Chocolates and candies are one of the best-loved foods everywhere in the world. These are one of life’s little pleasures. The attractivetastes and textures of chocolate and candies delight the senses of all ages.

SWOT:

Strength | Weakness |
-The notoriety of Haribo is very high so it’s more easy to launch a new product- Innovation politics (big investment in R) leader in innovation-Haribo answers to new needs (packaging, recipe) and to new way of consumption (individual, familial)-Haribo is present all around the world-22% of the market share In France-Self financing of the spending-Haribo’s product are recognize like quality product-Only 1 shareholder (total control)-Haribo is the leader on confectionery market-1st manufacturer of candies in France_Turnover:155 millions € | -Lutti is the leader on the adult confectionery market-Haribo has a traditional management (no market study: choice depend of the actuality,of the feeling of the manager) |
Opportunity | Threat |
– Consumption of candies in value and in volume is increasing (+ 4,3 % et + 2,8%)-Increase of the candies’ price more profit- 3,9kg of candies per person are consuming in France by year-Turnover of the market in 2005: €1,007 billion-The demand for natural candies increase-The market is very responsive to communication- No directcompetitor in this new market | -Weak consumption in France-Important competition (small organization/Kraft food/Cadbury/Kerry ingredients/Ferrero/ Chupa-Chups/Cemoi/Lutti…)-Copy of product by competitors-Innovation & communication are essential-Social changes: Rising obesity and consumers obsession with calories counting. Nutrition and healthier lifestyles -The loyalty of children are weak-Light drop ofthe market (-0,9%)-Aggressive price and promotion activity by competitors |

PESTEL Framework:

Economy
Growing market
Increase consumption
Impulse buying habit (80%)
-> Easy launch of innovative products
Politic
Management of snacking influence (government program)
Lobby on packaging (EU’s standards)
Fines
Legislation
-Disclaimer promoting healthy food:
www.mangerbouger.fr-Charter of Ethics: continue to provide quality candies
Strong regulation for the manufacturing process

Social
Urban lifestyle
Make a lot of activities
Looking for healthy products
High birth rate in France
Future consumers

Technology
Sweet with calorific value to compensate a snack with light sugar
Innovative packaging
Environment
Biodegradable
Recyclable packagingSweet Market
+
Haribo

Politic:

The politic environment leaves its mark on the sweet market with a lot of government programs. The emergence of the snacking phenomenon and the increase of persons in excess weight force the government to promote healthy food and well balanced diet. The packagings are now regulated with European norms and it forces sweet manufacturers to use the standards toavoid fines. The political environment is more and more regulated on the sweet market. That’s why the companies must respect the quality norms which re one of the key success factors during the manufacturing process.

Economy:

The sweet market is growing each year with a compound annual growth rate in the 2004-2009 period of 1.7%. The consumption is also more and more growing. The…