Marketing Design and Innovation: Wrigley
Wrigley is a well-known global brand dealing in wide range of confectionery products such as chewing gums, chewy and hard candies, mints, and lollipops. It is operating in nearly 50 countries and distributing its products in more than 180 countries. The company is based in Chicago, Illinois and was founded in 1891. Some of its brands i.e. Juicy Fruit, Wrigley’s Spearmint and Altoids have heritage of more than hundred years. Wrigley is famous for its innovative products that are introduced into its product line from time to time. Wrigley uses best ingredients and packaging materials for its products and the core principles on which it operates include quality, freedom, efficiency, responsibility and mutuality (Wrigley.com, 2017).
Late in 2014, Wrigley merged its Orbit and Extra brand but it launched Extra with new improved taste in 2015. As per the new market trends for health and taste, Extra is a new sugar-free gum available in single packs, multipacks and bottles introduced in more than five different tastes. The product is launched for Australian and New Zealand market. One of the best attributes of Wrigley’s product is innovation and the concern for consumer’s health. Wrigley continuously update the flavors of its Extra brand to please the palate of its valued customers.
UK confectionery market have been observed to have a high volume consumption and it stands as the sixth largest in terms of confectionery consumption. The confectionery market is driven by pleasure, convenience, drug replacement, snacking and innovation in products (Globaldata, 2016). Consumers are becoming health conscious due to the increasing issues like diabetes and obesity. Dentists are also increasing the awareness among people about oral health and the tooth related diseases such as plaque and saliva generation etc. dentists are making the consumers aware of the benefits of chewing. Due to the increased health consciousness, people are likely to take more products for treatment and prevention of such issues.
Wrigley has launched Extra and Extra Active in association with The Australian Dental Association (ADA), New Zealand Dental Association (NZDA) and the FDI World Dental Federation. According to Country Report Wrigley’s Extra marked the growth in 2016 because of its sugar-free and oral care features (Country Report, 2016). Now, Extra is involved in cause-related marketing and is making associations with the dental professional to educate the families about the significance of oral health. This brand contributed about one third of the percentage of total value shares of the Wrigley Company and is expected to continue to gain highest share because of its uncountable benefits (Country Report, 2016).
According to the Maslow hierarchy of needs theory, Wrigley’s product Extra attempts to satiate the physiological needs of an individual. Although it’s not basic necessity for life but oral health and refreshment are necessary for an individual and Extra` is capable of meeting these needs. It also satisfies the social needs of an individual because it boosts the confidence and reduces pressure and anxiety according to the research conducted by psychologists (Smith, 2012). Refreshing breath and sweet smell is necessary if an individual is attending a social gathering or event which is satiated by Extra i.e. to meet the love and belonging needs. People with high level of income usually buy Wrigley’s Extra which also satisfy esteem needs because it represents the status quo of the individuals consuming this brand. The self-actualization needs of an individual can be satiated by Extra because it gives a new touch to the lifestyle of an individual i.e. a refreshing breath and increased confidence.
Diffusion is defined as the process by which an innovation product is passed on to the members of a social system with the help of different channels over a specified time period. There are five types of people involved in the diffusion of innovation process i.e. innovators who are adventurous and are ready to the test the product as soon as possible; early adopters adopt the idea and are aware of the benefits associated with change; early majority adopts the idea before an average person does; late majority adopts the idea once a greater majority has tested it, and laggards are cynical to change and do not adopt the idea usually (Smith and Song, 2004).
Due to increased awareness among consumers about oral health, the percentage of people using Extra brand is increasing. Wrigley’s Extra has been rated 8.9 out of 10 by the consumers which means that they are early adopters who have adopted the product within a time span of two to three years (infoscout.co, 2017). The other reason for product adaptability is the range of tastes available i.e. the consumers consume different tastes of the products to please their palates. Consumers prefer products which are healthy and Extra is healthy in terms of oral care and it’s sugar-free as well. Extra is clinically proved by the professional dental associations and it also stimulates the saliva by 10 times.
It is very important to identify the needs of consumers and become aware of the market trends before launching a new product. Because the consumers are becoming increasingly health conscious, Wrigley has identified recent trends in the market and launched Extra into the market.
Customer’s needs change over the period of time due to the changing market trends and in the recent business environment, customer is considered as the king of a business. According to the Kano model, a product must be developed considering the basic needs of customers, performance needs and excitement needs i.e. basic needs are hygiene needs while excitement needs are delighting needs and these delight needs later one become basic needs and then customers need something new (Wang and Ji, 2010).
Wrigley’s Extra is a product that can satisfy the fun and pleasure needs along with the health needs of an individual. The hygiene needs of Wrigley’s Extra are the promotion of oral health, prevention of teeth caries, and plaque reduction etc. while the fun and pleasure attributes of Extra satisfy the delight needs. With the innovation of brand these delight needs will become the basic needs of an individual. The bottom line is that the product should have the attractive and must-be attributes that can fulfill the needs of customers for which they are using the product. These attributes of Extra are health and bacteria prevention ingredients.
During the product development, the anatomy of product is important to analyze in terms of the benefit it will offer (Blythe, 2017). The product anatomy is conducted to match the consumer trends with the product offered by a particular brand. The core product of Wrigley’s Extra is the oral health and its sugar free i.e. cleans food debris, neutralizes plaque acids, strengthens teeth, reduces dental caries, prevents tooth decay, and stains. The generic product of Wrigley’s Extra is that it’s available in wide range of flavors i.e. strawberry, peppermint, spearmint, white lemon lime, bubble mint, water melon, berry and orange cream etc. The expected product is that it stimulates saliva and refreshes individual’s breath. And the augmented product of Wrigley’s Extra is that it is available in different types of packaging i.e. 14 pieces and 10 pieces single pack, 28 and 42 pieces multipack, and 46 pieces bottle (Desfosse, 2017).
This product has delighted the palate of numerous customers which is reflected in the increased sales figure of Wrigley. A report showed that one third of Wrigley’s sales of 2016 were contributed by Extra (Country Report, 2016). It shows that people are continuously using the Wrigley’s Extra for their oral health.
The development of Wrigley’s Extra has shaped the overall gum market and has proved to be a market leader in 2016 by increasing the overall sales of Wrigley. The prime cause for increased value of Extra is its association with the professional dental associations and being a sugar-free chewing gum. The brand awareness is created by educating the families and general public through the use of creative and educative advertisements (Schultz, 2015).
According to statistics of 2015, the sugarless and breath fresheners has seen considerable increase in dollar and unit terms. The sales of Wrigley’s Extra increased to 9.3% from 8.6% a year ago. This is because consumers are adopting the more socially acceptable mint and refreshment gums for refreshing themselves. The sales of Wrigley Extra are expected to grow in the near future because the dental care specialists are positioning the oral care and sugar free gums as more important for the consumers to chew after and between the meals (CSP Daily News, 2015). It will be easy for Wrigley to retain its customers for Extra because of the cause-related marketing and its association with the professional dental associations. Due to the increased consciousness and awareness among the people about obesity, they are reducing more and more on the snacks and this is the best alternative that can be replaced for snacks. This trend of marketing is likely to increase the sales figure for Extra chewing gum. Another important marketing milestone of Extra is that it’s associated with the “Action for Children” charity donations from sales of Extra packs.
Business scorecard is the metric used for the purpose of aligning different strategies with the vision and mission of an organization. It undertakes the newly formed strategy of a particular business and transforms it into marching order on daily basis. A newly developed product can be seen from four perspectives according to the balanced scorecard. These four perspectives are learning and growth perspective, business process perspective, customer perspective and financial perspective (Violet and Josiah, 2011).
Learning and growth perspective: According to the recent statistics for Extra gum, it can be evaluated that the consumers percentage using this product is increased a certain extent during 2016 and is expected to grow further (Country Report, 2016). Although Extra gum was once merged with the Orbit brand of Wrigley but later on it was relaunched with improved taste and packaging that attracted a whole new lot of consumers and increased the market share by 71%. Customer are satisfied with Extra and Extra Active brand of Wrigley due to its string oral care positioning and sugar-free attribute.
Business process perspective: Extra gum was launched with new taste and packaging and it was brought back to the market due to its increased demand from the customers. Management has launched the product after conducting complete market research and clinical importance of the product. It is made with best possible ingredients i.e. real sugar and no artificial colors are added into it. The unit sales of Extra gum are increased from 8.6% to 9.3% that shows the efficient procurement and distribution capabilities of Wrigley’s Extra (CSP Daily News, 2015).
Customer perspective: Extra is available in different tastes, different packets size and is suitable for customers of any age. The product is best for chewing before and after the meals and is mainly targeting the oral care of children and aged people. It is the best replacement for the customers who want to quit smoking and it can also be used after smoking. Customers are satisfied about this product which is evident from the increased sales figure and the reviews of customers for this product (Wrigley.com, 2017).
Financial perspective: Extra gum has contributed one third of the total sales of Wrigley’s overall sales figure. The Country Report (2016) quotes that “The company is expected to edge up by around a third of a percentage point overall to reach close to 89% value share. The company’s share gain in 2016 will be solely due to its Extra brand, which alone will gain over a percentage point in the year and dominate sales with over 71%.” It means that the brand is also performing well in terms of finance.
The overall position and performance of Extra gum suggest that due to the oral care positioning and cause related production and marketing of the product, Extra will be put as an important element for the oral care regimes. The competitive advantage of the product is that it is available in different sizes, flavors, packets, is nutritional and perfect for all age users and is available in more than 180 countries.
Extra gum is one of the best products designed by Wrigley for oral care and is sugar-free which was once kicked out of the market due to the other brands offering same product. Based on the heritage of more than hundred years and the best quality, Extra reclaimed its leadership and innovative place in the market after its launch with new tastes and packaging. The innovation and leadership attributes of Wrigley are renowned in the market. The company should strive its best and keep an eye on the market to continuously upgrade the brand in terms of packaging and tastes so that it may not lose the market share.
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