Exhibit 33 Eu Consumption Op Confectionery Kg Per Capita

NETHER

EU

I

fmAlNTO

i UK G

GREESE I

XLGGUM

DENMARK

germanyy

FRANCE

LANDS

ITALY

SPAIN

I'ORTl'GAI, AVERAGE

Chocolate

B.3

8.3

2.4

7.ü

7.2

5.9

5.2

6.ü

1,3

2.3

ü.5

4.B

Biscuits

17.9

13.ü

17.9

5.2

5.5

3.1

6.5

2.B

5.9

5.2

4.6

6.6

Ice cream

B.ü

7.1

5.3

9.B

9.1

7.B

4.7

4.5

6.1

3.B

1.B

6.ü

Total

34.2

2B.4

25.6

22.ü

21.B

16.B

16.4

13.3

13.3

11.3

6.9

17.4

SourgE: Irish Consumer Market Handbook: A guidebook for marketing managers, ed. M. V. Lamb Inn (Dublin: Marketing Society of Ireland, 1993), adapted from European Marketing Data and Statistics:, 27th tv.ln (London-. Euromonitor, 1992).

SourgE: Irish Consumer Market Handbook: A guidebook for marketing managers, ed. M. V. Lamb Inn (Dublin: Marketing Society of Ireland, 1993), adapted from European Marketing Data and Statistics:, 27th tv.ln (London-. Euromonitor, 1992).

cloek (suggesting that any time is suitable for TimeOut) and a mug (which reinforced the beverage break accompaniment role).

The new brand needed a strong visual identity system to reinforce the other positioning elements. Hence the use of bold primary colours on the packaging to attract attention and create competitive distinction. The two main colours used were blue, considered the main identity colour, and red, which is used to write the brand name. The brand name is surrounded by yellow; this blue/red/yellow association is the colour scheme most easily associated with light biscuity bars. Blue also has a symbolic connotation and is considered as a peaceful and restful colour. The choice of colour is interesting because the market is dominated by darker brand colours such as black/brown (Mars) and gold (Twix).

Pricing

Consumer knowledge of price in the snack market, given its habitual nature, is high. However, the standard-size chocolate bars are only slightly differentiated in terms of price. Given the power of retailers, the producer often has little discretion in the determination of price. TimeOut was launched at a priee of 28p, while a standard bar was priced at 30p.

Packaging Configuration

Packaging was particularly important in positioning TimeOut as a bridge brand.

Most brands establish themselves in standard format initially and then expand to different formats. TimeOut, however, was required to meet the needs of a number of groups and so came in a variety of formats from the start:

• Standard. The standard product to be sold in newsagents, workplace restaurants and coffee shops. The format is two full-size fingers in a flow wrapper. In newsagents or supermarkets, TimeOut is placed with other Cadbury brands.

t 5-pack. The five-pack format was five TimeOut fingers in a convenience pack to allow the product to be bought in bulk from supermarkets. It is positioned with the multipacks for other confectionery products.

• Breakpack. The breakpack consisted of six shorter twin-finger packs individually wrapped. This is also sold in supermarkets and is intended for the home snaek market. In supermarkets the breakpack would be put on shelf space with the biscuit range.

t Treat-size. The treat-size format is intended to meet the demands of the children's treat/party market. The treat-size format was 14 full-size, individually wrapped TimeOut fingers. These are mainly distributed through supermarkets. The shelf position for the treat size is with the treat and fun-size formats of other confectionery1 products.

Advertising and Promotion

At its initial launch in early 1992 TimeOut was supported by a complete range of advertising and promotion. Heavy TV and radio advertising emphasized the 'TimeOut at any time' theme. Promotions included balloon releases at several centres around the country, a variety of street activities involving a national radio station and using branded characters, and participation at the annual St Patrick's Day parade in Dublin. Free samples were generously distributed at street activities and during in-store promotions. TimeOut has also made effective and large-scale use of poster advertising,

TimeOut used both family brand promotions and brand alliance promotions in its initial positioning. An example of the family brand promotions was one with

Lyons tea, the largest selling brand of tea in Ireland. The promotion gave customers a free bar of TimeOut with every standard box of tea. This achieved two goals. First, given the market share of Lyons, it faeilitated trial of the product. Secondly, it was an opportunity to nail down the position of TimeOut as a beverage accompaniment. The overall promotional message was one of a new, friendly, modern, fun and young, beverage-break accompaniment that was suitable for use at any time.

The Success of TimeOut

Six to eight months after the launch of TimeOut, a national trade maga/ine eompleted a brand evaluation (Checkout, July-August 1993). Primary research eompieted by an independent research company highlighted some extraordinary results.

User Profile

The user profile of the brand demonstrated a widespread acceptance. The vast majority of adults and all children had used the brand at some stage since ite introduction (see Exhibit 3.4). Women, a prime market for chocolate consumption, represented over 60 per cent of TimeOut consumers. Users were drawn from all areas of Ireland, but were particularly strong in urban areas. This user profile was assisted by a high conversion ratio for both adults and children (see Exhibit 3.5).

EXHIBIT 3.4 BRAND ACCEPTANCE AMONG ADULTS AND CHILDREN (%)

ADULTS

CHILDREN

(15 YEARS +)

(11-14 YEARS)

Ever used

68

97

Used once/twice

23

13

Occasional user

22

41

Regular user

14

43

SOURCE: Lansdownu Market Research.

EXHIBIT 3.5 GADBURY'S TIMEOUT CONVERSION RATIO (%)

adults

CHILDREN

(15 YEARS +)

(11-14 VBARS)

Aware

86

100

Awareness to trial

69

97

Trial to repeat user

61

87

Lost con -sum ens

7

1

SOURCE: Lansdowne Market Research.

SOURCE: Lansdowne Market Research.

Attitudes Towards the Brand

As might be expected, given the high levels of trial achieved for the brand, consumer attitudes towards the brand were very positive (see Exhibit 3.6). This is particularly evidenced by the positive appeal that the brand had for both adults and children. Among the target group of 11—25-year-olds there was virtually nu criticism of the brand. This sort of consumer support should allow TimeOut to build on its initial success even after its large-scale media support is reduced.

Overview Case Three: Cadbwy's TimeOut

EXHIBIT 3.6 CADBURY'S TIMEOUT BRAND APPEAL (%}

ADULTS CHILDREN

Positive 66 86

Neutral 27 14

Negative 7 1

QUESTIONS

1. What criteria did Gadbury Ireland use in developing TimeOut?

2. What role did they play in the positioning strategy of TimeOut?

3. What are the risks of the 'bridge-brand' position?

4. Which marketing-mix variables were most important in positioning TimeOut?

5. How did the positioning and marketing strategies of its main competitor influence TimeOut's positioning?

6. What are the cultural factors that account for the success of TimeOut? Could TimeOut be successful in other European countries?

A hamburger by any other name costs twice, as much.'

EVAN ESAU (MODERN MARKETER)

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