How Sweet

The Business Issue

Our client, a leading confectionery company, is a market leader in the sweets and lollies realm. The challenge was determining how to grow in a static category (in which one is already the undisputed leader) and launch new products without taking away from the company's well-established brands.

The Background

The company wanted to build share in the wider confectionery market by leveraging the presence of its current brands. It had innovative ideas and wanted to go outside traditional territory, but needed consumer assurance that these new products would not deviate from or dilute the value of current brands. The client had three potential concepts for launch into the Australian market. They looked to Research International for help in screening the concepts and volumetric testing.

The Solution

RI recruited consumers and screened the three concepts. Using MicroTest, a proprietary technique for forecasting sales volumes and identifying any product barriers, the team identified two potential lolly concepts that would be viable for the company, based on volumetric predictions.

The Business Value

Based on the research and insight that RI provided, the company learned that consumers would still buy their various brands even if they went outside their traditional "stomping grounds," with some new and different products. The volume estimates reassured the company's marketing team and gave them the confidence to move forward with the launch of two concepts. The first concept, under the company's flagship brand, was launched a few years back, with the second concept following recently. Both products remain big sellers in the confectionery category in Australia.