Grow My Business - Alison Cowzer 'Bake it to Make it'

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3. PRODUCT
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“THE FUTURE DEPENDS ON
WHAT YOU DO TODAY”Mahatma Ghandi

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Customer loyalty is a strategic priority for many Irish businesses this year; that’s why An Post has launched a superb new resource, the Direct Debate. This portal will let you share your views on loyalty and put the best tools, case studies, and practical advice to work for your business. It’ll grow to become a one-stop shop for the strongest research, brilliant ‘how-to’ guides and fresh perspectives. And it’s all yours, for free. On the 1st May, we invited Paul Candon, the Marketing and Corporate Services Director of Topaz and Leanne Papaioannou, Managing Director of Chilli Pepper Marketing to share their Loyalty perspectives. From Leanne, attendees found out how to: • Win customers’ hearts and minds. • Optimise your loyalty strategy for real results. • Convert influential customers into brand advocates. Find out all you need to know about loyalty now at anpost.ie/directdebate.

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What’s happening in the Irish grocery market? Are we potentially at a tipping point in the Irish market? In a strong and vibrant grocery market, in the 12 weeks to the 16th of June 2019, the grocery market in the Republic of Ireland grew by 4.6% …so for all major grocery market retailers’ things are looking really healthy! For several years now we have experienced Aldi generating strong growth in the Irish market but what is amazing is that for the first time since Aldi arrived into the Irish market in 1999, now due to their significant scale and their growth over the 12 weeks period to the 16th of June 2019, the biggest growth in total sales value in the Irish grocery market was generated by Aldi who delivering €43 Mil. in additional sales relative to the same period in the prior year!

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SUMMARY From 2006 to 2010: • Sales of confectionery increased by 14% to £5.03bn. • Chocolate sales rose by 17%. • New product development (NPD) has been limited in recent years. Brands have produced their existing products in different formats, for example, as miniatures, or improved and modified the recipes of existing products. For example Nestlé and Cadbury used more organic and fair-trade ingredients. • The market value is predicted to rise as the input costs are raising (price of cocoa and sugar + added tax: VAT). • Even is the level of UK market penetration is increasing, the potential for growth is limited. • The confectionary industry reacted quickly to the economic downturn by meliorating the value proposition and the number of promotions and discounts in order to attract cash-strapped consumers = the industry is unscathed. CONTENT I MARKET DEFINITION 1. Market Size: 2. Market Trends: 3. UK Chocolate Confectionery Sector: 4. UK Sugar Confectionery sector: II INDUSTRY BACKGROUND 1. Employment 2. Distribution 3. Consumption 4. Key associations: III COMPETITORS 1. Brand strategy 2. Cadbury Ltd (Owned by Kraft since 2010) Brands selection: • Flake: http://www.youtube.com/watch?v=o72M-Z6qhJg • Green & Black’s: http://www.youtube.com/watch?v=up06rdUurg4&feature=related • Halls Soothers: http://www.tellyads.com/show_movie.php?filename=TA12342 • Wishes: http://www.cadburymakeawish.org/ • Wispa: http://vimeo.com/31499750 3. Kraft Foods UK Ltd Main Brands: • Milka • Terry’s Chocolate Orange 4. Mars/Wrigley Main Brands: • Bite-size: http://www.talkingretail.com/products/product-news/mars-launches-biggest-ever-bitesize-promotion • Galaxy: http://www.youtube.com/watch?v=Old1KN9qYuM • Wrigley Extra: http://www.youtube.com/watch?v=lRDfkAkQTEo 5. Nestle Brands selection: • Aero: http://www.youtube.com/watch?v=K0Gr0_taK-k • Polo: http://www2.cbsoutdoor.ie/Our-Media/Excite/Polo---Sucker-or-Cruncher/ • Rowntree: http://vimeo.com/23154594 IV SWOT 1. Strengths 2. Weakness 3. Opportunities 4. Threats V Buying Behaviour VI Future trends

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• Queen’s birthday and Euros boost sales at Waitrose • Iceland beats off competition from Aldi at ‘Frozen Food Industry Oscars’ • Poundland FY 2015/16: challenging year as discounter prepares for growth • Waitrose opens new Truro branch alongside Great Cornish Food Store • Tesco sells Dobbie Garden Centres for £217m • Convenience store numbers reach 'saturation' after surging 21% in five years • Warmer weather boosts retail expenditure in May • Holland & Barrett enjoys strong growth both home and abroad • Revlon to acquire Elizabeth Arden • Brexit threat has already hit UK ad spend, says IPG Magna forecast

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