| In business knowledge is power. When considering | | | | It was unanimous that the new product was a level |
| expanding your product line there is a lot of | | | | above DC's existing range and able to compete with |
| unknowns. It can be like trying to find your way in | | | | other mainstream confectionery items. Therefore it |
| the dark without a torch. Who will buy it? How many | | | | was recommended that DC introduce a new 'luxury' |
| potential customers are there? What product | | | | brand. The consultants designed a survey to test |
| features do customers want? How should the | | | | possible brand names and possible logo designs with a |
| product be positioned to appeal to these potential | | | | database of key influences made up of brand |
| customers? The questions are endless. Knowing, or | | | | specialists, FMCG brand managers and industry |
| at least having an insight to the answers will shed | | | | associates. It emerged from the survey that the |
| light on your journey from initial concept to the | | | | preferred brand name was 'Donovan Brothers'. The |
| marketplace and increase the products chance of | | | | research also aided in design aspects of the Donovan |
| success. Market research is the torch. | | | | Brothers brand. |
| The following is a short case study about Donovans | | | | In the competitive analysis it was apparent that the |
| Chocolates and how market research helped them | | | | market was segmented between mainstream |
| 'hit the mark' with their new chocolate bar. | | | | chocolate bars - Cadbury, Whittaker's, Lindt, etc; and |
| Donovans Chocolates (DC) is a relatively small | | | | organic chocolate bars - Green & Blacks, |
| chocolate manufacturer run by two brothers based in | | | | Dagoba, Scarborough Fair, etc. The new recipe was |
| Hamilton, New Zealand (NZ). Until recently DC had | | | | organic but after much analysis the consultants |
| only produced traditional chocolate and traditional | | | | recommended that the bar was not positioned as |
| chocolate covered confectionary. The brothers had | | | | organic. The organic customer base, although |
| been working on developing a new recipe. The new | | | | growing, was still very small and competitors |
| chocolate was made with only the bare ingredients | | | | consisted of a couple of large and a lot of small |
| necessary and didn't feature any of the additives and | | | | manufacturers. The mainstream chocolate bar |
| preservatives found in all other mainstream chocolate. | | | | customer base however was much larger. Going |
| Their recipe gave a 'true' chocolate taste which was | | | | after the mainstream customers would mean that |
| not altered by additives. The Donovan brothers knew | | | | Donovan Brothers would only need to secure a small |
| that they were on to a great product but they were | | | | share of the market to be successful. The |
| unsure of what the best strategy would be to take | | | | consultants recommended calling the bar 'Donovan |
| it to market. | | | | Brothers Pure Chocolate'. The word 'pure' is very |
| DC sought the services of a marketing consulting | | | | mainstream yet still appealed to people who are |
| firm to conduct research and formulate a marketing | | | | concerned about the content of their food. 'Pure' |
| strategy for their new bar. The first steps involved a | | | | would give Donovan Brothers a point of difference in |
| significant amount of competitive analysis around | | | | the chocolate bar marketplace as it would highlight |
| what confectionary bars are currently available in the | | | | that it has no additives or preservatives. Pure had |
| marketplace, both nationally and internationally, and | | | | been used successfully by other New Zealand |
| how they were positioned. This included pricing, bar | | | | products such as beer, water and most notably in |
| sizes, branding, packaging and product range. | | | | Tourism New Zealand's international marketing |
| Comparing this research against industry sales data | | | | campaign. This tourism link was important as it was |
| allowed the consultants to analyse which | | | | planned that the chocolate would be exported and |
| manufacturers were doing well and why they were | | | | also sold in duty free stores. |
| doing well. | | | | |