Skittles: Brand and Consumer Understanding
description
Transcript of Skittles: Brand and Consumer Understanding
Creating the Brand Experience
Skittles Case Study
SAATCHI & SAATCHI
August 23, 2005
Objectives
• Why and how did Skittles change its brandpositioning and creative strategies?
• What exactly did Skittles change?
• What is the roadmap for developing insightful andimpactful communications?
Skittles Background
• A European favorite, Skittles was launched in theUSA in 1981
• A bite-sized candy with a coated hard shell andchewy center
• Competitive set: Fruit-flavored confectionaries,primarily non-chocolate candy and gum
Confectionary Market Dynamics (USA)
• Non-chocolate candy sector value is $5.3B– Chewy candy: $659MM for 2003, 1.4% YOY– Gum: $309MM for 2003, (4.8%) YOY
• 427 new candy products were launched in 2004
• Per capita consumption of candy and chocolateis 22.3lbs for 2003 vs 18.9lbs in 1984
• Mature and consolidating sector w/ increasedcompetition from other vertical “players”
Source: USDA; National Confectioners Association; Convenience Store News, 2005
Confectionary Trends
• Novelty– Part candy, part toy
• Licensing and entertainment partnerships and tie-ins
• Transformers– Candy changes into gum
• Extreme mints– Liquid mint blasts and capsules
• Mash Ups– Unorthodox flavor, texture, and taste combinations
Source: candyindustry.com, 2005
Make me Feel “It”
Sweeten Up
Co
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Not inclusive of broader competitive set eg, macrosnacks
Inte
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Creativity
“Taste the Rainbow”
A Functional Benefit Strategy
Pre 2005
Skittles: Product Truths
• Hard, shiny, colorful shells• Fruit-inspired soft, chewy
center• Round/disc-like• Fruity and floral aromas• Noisy and crunchy• Signature “S” badge
Base Brand (Original Skittles), does not include line extensions
Taste Messaging…Simple but Limiting
• Skittles previous communications (pre 2005)focused solely on taste and flavor messaging– “Taste the Rainbow”
– Target: Gender Agnostic teens, ages 13-17 whofrequently consume macrosnacks
– User Benefit: Combination of fruity, tropical, andcolorful flavors; multi-sensory (hard & chewy) -Rational
– Reason to Believe: Only Skittles brand is thecolor of the rainbow
A Literal & Undifferentiated Positioning
“Taste the Rainbow”
Experience the differenthues, flavors of Skittles
When I want a fruit-flavored candyConsumer Motivation
Product Offering
Brand Message
(Product)
Only 1/2 of the Story
“Taste the Rainbow”
Diagnosis
• Messaging taste and flavor in a commoditized andundifferentiated category, where rational elementsare the “price of entry” is not a strategy
• Product has become king, trumping the actualbrand; once consumption is finished, the brand hasno extraneous role for the user– No emotional dialogue or relationship with
user/audience
Implications
[Young] consumers value relationships with brandsthat have a clear POV, stand for something, and aredifferent. Brands that do not strategically soundbrand promise, defined essence, and positioning,run the risk of consumer disinterest
– Low awareness– Infrequent consumption– Ambiguous perceptions– Negative equity measures (eg, regard,
recognition)– Weak brand loyalty
“Believe the Rainbow. Taste the Rainbow.”
An Evolved Experiential Brand Strategy
2005
Skittles: Target (Lifestyle)
• 13-17year olds; sweet spot 16• Full time students (junior to high
school)• Responsibilities: Part time gig,
community service, familial duties• Living life to the fullest (active)• Social creatures powered by
positive energy• Vibrant and dynamic personalities• Multi-cultural/ethnic• Self expressive and experimental• “On the Go” but not sure how to
get “There” yet…
Source: LSI, 2005
Skittles: What/When is it for?
• Functional– Gives me a boost– Lets me focus– Satisfies my indulgence– Flavor rush– Allows me to feel
• Emotional– Makes me excited– Brings out positivity– Changes my perspective– Makes me happy– Engages all of my senses– Affirms my good mood
The Solution
[Young] consumers value relationships with brandsthat have a clear POV, stand for something “real”,and are freshly different. The experience can begreater than the product.
Develop natural product extensions that organicallycreate occasions/moments for the desired andintended experience and/or solution to an unmetneed.
Skittles Smoothie Mix Skittles Bubble Gum Skittles: Original, Sour, Tropical,
“Blend the Rainbow” “Inflate the Rainbow” “Hear, See, Touch, Smell, Taste… theRainbow”
Multi-sensory Experience
Brand Product
Consumer
“As Real As It Gets”
FROM TO
CANDY EXPERIENCE
IRRELEVANT IRREVERENT
COLOR PASSION
EXPECTED UNPREDICTABLE
13-17 LIFESTYLE
EXPERIENCELIFE INCOLOR
“LIVE W/INRAINBOW”
“TASTE THE RAINBOW”Functional
Emotional
Brand Essence
To users ages 13-17, sweet spot 16, who use candy and macrosnacks, only Skittles delivers afruit-inspired multi-sensory experience to color your world…
Assumed brand positioning and benefits
(Product)“Taste the Rainbow.”
“Believe the Rainbow.”(Brand)
The Skittles Experience+
Results
• June 2005 sales have increased 10% (IRI)to approx.$80MM for the 52 weeks ending July 10, 2005
• Unaided Awareness increased 3% (Ipsos-ASI)
• June 2005, Skittles.com had 318K visitors vs 11K forthe same period in 2004
Source: Adweek, August 8, 2005
Advantages of a Prescient Strategy
• Inspiration and development for revenue-buildingbrand extensions - both flavors and new products
• A Skittles differentiated brand in the non-chocolatecandy and gum sectors, and the MasterFoods/Marsportfolio
• Resonation with the target audience - credible and“future proof”