Marketing Design and Innovation (PDF)

Running head: MARKETING DESIGN AND INNOVATION
Marketing Design and innovation
Name of the student
University name
Author’s note

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MARKETING DESIGN AND INNOVATION
Table of Contents
Introduction................................................................................................................................2
Objective....................................................................................................................................2
Part A-Consumer trend analysis.................................................................................................3
Part B- Ingredients in product....................................................................................................4
Part C-Assessment of data on market trends before product launch.........................................5
Part D- Market performance of the product...............................................................................7
Summary of the report...............................................................................................................8
References................................................................................................................................10

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Introduction
The current assignment focuses on the marketing and innovation strategies for a new
product launch. In the current assignment, WRIGLEY’S 5 GUM had been taken into
consideration. It had been launched in the USA market in the year 2007 with an aim of
providing the customers with a healthy alternative. Wrigley’s is the world’s leading
manufacturer of chocolate, chewing gums, mints and fruity confectionaries etc. It has its
operations spread across 70 countries and is famous for manufacturing some of the known
brands such as snicker’s, skittles, orbit etc (chiefmarketer.com 2018).
However, before the launch of a new product a number of steps needs to be
undertaken which are analysis of the market trends, understanding of the customer choice or
preferences. Therefore, taking some of these factors into consideration the marketing plan for
a brand or a product could be developed.
Objective
The objective of the assignment is to-
 investigate the consumer trends that might have prompted the launch of new
product WRIGLEY’S 5 GUM
 Assess the market performance of the WRIGLEY’S 5 GUM and draw
conclusion of its overall success
WRIGLEY’S 5 GUM is the new chewing gum of 5 calories, a product of MARS
WRIGLEY CONFECTIONERY, launched in 2007 in US market. This sugar free stick gum
product is more than just a gum brand and manufactured to stimulate senses and give people

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a whole new experience. The name 5 on the product indicates stimulation of five senses
(Wrigley.com. 2018).
Part A-Consumer trend analysis
For a product to receive success within the competitive market it is necessary to
develop an idea regarding the customer trends. Some of the customer trends which were
emergent during the launch year of the products were – going sugarless, healthy teeth etc.
Therefore, based upon the current preference of the target customer segment the marketing
plan was further developed. The chewing of gums had been found to be predominant within
the teenagers. Hence, the young adults or the teenagers formed the target customer segment.
In the order to evaluate the customer trends it necessary to understand the various factors
guiding the purchase of a product. Some of the factors which make teenagers prefer chewing
gum are the relaxation produced by the chewing gum; they help in controlling bad breath,
help in avoiding snacking, clear nose and throat, as well as protect the teeth from decaying
activities.
The chewing of the gum has been seen to reduce anxiety by normalising the balance
of serotonin and dopamine in the brain. As mentioned by Nikolova and Inman (2015), the
chewing activities have been seen to reduce the anxiety levels by decreasing the synthesis of
cortisol. The stress relief occurs and instantly and has long term effects. The flavoured gum
has been seen to cause arousal in the memory and learning centre of the brain helping in
generating quick reaction. In the recent times, there is growing concern regarding the
consumption of excess sugar rich diets. Reports have proved that excess consumption of
sugar is associated with weight gain and digestive disorder. For example sugar rich diet has
been seen to promote the development of conditions such as Gastroeosophagul Reflux
disease (GERD) in people. Excessive comsumption of sugar have been seen to cause tooth

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decay alongside prevent bad breath; therefore, sugar free mint rich gums provide one with
healthy alternative (livingwithgastroparesis.com 2018).
The Wrigley’s products have also been approved by the American dental association
which mentioned that the chewing of the gum prevents tooth decay by controlling the
formation of plagues. The chewing of the gum stimulates saliva secretion, which contains a
number of digestive juices; hence aids the process of digestion. Additionally, as reported by
teens who have been regularly consuming Wrigley’s gums, that is available in 15s in a single
pack with a slim design. Hence, they are easy to be fitted inside the jeans as well as the long
lasting smell makes them a hit among the target customer segment (chiefmarketer.com
2018). The long lasting smell stimulates all the five senses which further help one in relaxing
further.
Part B- Ingredients in product
The ingredients of the product are Sorbitol, Glycerol, Gum Base, Natural and Artificial
Flavors, Mannitol, Less than 2% of: Hydrogenated Starch Hydrolysate, Acesulfame K,
Aspartame, and BHT (to Maintain Freshness) (Wrigley.com. 2018). This ingredient served
the needs of the teenagers who were attracted to chewing gum. It also serves the needs of
diabetics who are not supposed to take sugar (Sylvetsky and Rother 2016.). Sorbitol used in
the gum has less affect on the blood sugar level. Sugar along with glycerol and mannitol adds
to just 3 calories per serving. Gum base also gives smooth soft texture making it easier to
chew and enjoy by reducing tackiness (Sato et al. 2010). Thus without sugar these
ingredients creates tasting gum. These ingredients are also known to prevent tooth decay and
freshen the breat due to flavours like mint. These ingredients with tasty favours and variety of
colour stimulates all five senses of human body making it pleasure to eat gum and not just
throw it away. For instance, Mannitol a low calorie sweetener, is fermented in large intestine

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to short chain fatty acids and gases that provides energy on absorption. These products are
easily digestible. On the other hand Aspartame is also recognised by FDA as safe. The
selling of gum product increases, when they are enlivened through dyes from natural sources.
The presence of sugar alcohol is good for oral health as they are not metabolised by oral
bacteria (Barkalow et al. 2014). Acesulfame K, is also FDA approved product used as
artificial sweetener with zero calories. Similarly, Glycerol has the low glycemic index and
retain proper moisture to make the gum flexible. It makes it easy for even people with
denture to chew. Thus, these ingredients make the product edible by people of all ages
(Sylvetsky and Rother 2016).
As consumer shift to healthier, natural and fresh food, Wrigley also moves to healthy
food trends by innovation. It can be concluded from the above discussion that the ingredients
of the products are well linked with the consumer trends. The variety of new flavours leads to
line extension as entirely new product was created by slight modification to existing one
while taking into considerations of the health needs of people (van buul and Brouns, 2015).
Therefore, the new product launch is sure to increase demand and sales as it does not
compromise on the texture, taste and health. These ingredients greatly match the health
needs of teenagers, young and older adults while stimulating all five senses giving long
lasting experience.
Part C-Assessment of data on market trends before product launch
In order to launch a product it is necessary to access the data on market trends. In the
year 2015, the global chewing gum market sales have amounted to 25.83 billion US dollars
(Hansen and Grunow 2015). Wrigley’s is one of the most successful companies when it
comes to sell of confectionaries. Most of the companies worldwide have gained their profits
though merger and acquisitions where they are providing a platter full of diverse

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consumption items for the target customer segment. Wrigley’s continue to earn its profits
from the sale of chewing gums alone. However as mentioned by Yu and Kim (2017), due to
lack of diversity the investment professionals consider the company to be outright boring.
The ability of Wrigley to produce consistently positive results and pay shareholders a
dividend has earned it the reputation of one of the best run companies of America. It has seen
exponential growth rate from 1980 onwards to 2016. However, very recently there has been a
rise in the number of other similar market players such as the Trident gum which scores the
second rank in the world for chewing gums and has annual revenue worth $1 billion (Rubera,
et al. 2016). Hence, based upon these much emphasis needs to be place upon the product
development in the current market for which a number of effective strategies and gimmicks
needs to be developed.
The market trends could be further analysed with the help of ansoff’s growth matrix
which could be further divided into a four different components such as market penetration
strategy, product development strategy, and market development strategy and product
diversification. The ansoff’s growth matrix helps in determining the possible growth
strategies for the organization. The four parameters of ansoff’s matrix help in analysing the
market trends by the collection of specific data sets.
Through the market penetration strategy a company or brand focuses on its existing
group of customers and provides them with more convenient options based upon their
preferences (Parsons et al. 2016). This is crucial to prevent the customers from purchasing
products from the competitor groups. Complimentary offers such as provision of an extra
packet of Wrigley chewing gums on purchase of two such packets (Liedtka 2015). As
mentioned by Villaroel Ordenes et al. (2016), such intelligent pricing policy not only helps
to recover the cost but also helps in attracting diverse and huge customer base.

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The second stage is the product development stage where company focuses upon
modifying or re-developing the existing product to meet the changing demands of the target
customer segment. Therefore, the Wrigley’s aims to experiments with the flavours of the
chewing gums which can appeal differently to different target group of customers.
The third stage is the stage of market development where the company aims to enter
unexplored marketing niche by using effective pricing policy and promotional activities. The
Wrigley’s uses some of the channels such as audio-video mode advertising and social media
for the promotion of its new product 5 Gum at this stage. As mentioned by Lipizzi et al.
(2015), using the properties of search engine optimization a product could be sold across
wider customer base. It also helps in providing maximum exposure to a product by making
the public informed of its different varieties and forms.
The diversification is the stage which involves both product and market development.
It is the most vital stage and consists of the maximum market risks. As mentioned by
Edwards (2015), the risks are compensated by high returns if investment.
Part D- Market performance of the product
The Boston consulting group (BCG) product portfolio matrix is used over here in
order to develop a long term strategic plan for the organization. Additionally, the BCG
matrix could be used to measures the market performance of a product. It helps in planning of
growth opportunities for a business by reviewing its portfolio of products. The BCG matrix
could be further divided into four quadrants which are-star, question mark, cash cow and dog.
The question marks determine the products in high growth market with low market share.
The question mark refers to the initial stage when the product is developing or yet to capture
the market fully or completely. The star shows that both the growth market and market share
are in high positions. The star is referred to be the best position and is signified by the rising

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stage of the product. Cash cows indicate that the products are in low growth market but the
market share is high, whereas dogs display low positions with respect to both market growth
and product share. As mentioned by Palia et al. (2014), at the cash cow stage the market
growth rate is comparatively stagnant and offers little opportunity for the product to expand it
niche. The dog corresponds to the dying out phase of the product. It is at this stage that the
product seems to exist or generate any significant reaction within the target customer
segment. The 5 gum here occupies the star position which is signified by a high growth and
high market share. However, the changing market dynamics can question the survivability of
the product of brand within the current market (Bitner et al. 2015). Hence, modification of
the products at all stages is required to maintain high market standards.
Summary of the report
The study here focuses upon the aspect of marketing and innovation of a product or
brand within a current marketing niche. In the present study, the Wrigley’s enterprise
produced 5 GUM had been taken into consideration. The changing view towards health had
brought about a change within the customer and marketing trends such as production of
sweetener for gums. The change in the customer demands have resulted in significant change
in the marketing techniques of the Wrigley’s confectionaries. Though, some of the changes
have been beneficial, the rest had failed to produce required and significant reactions in the
target customer segment. Hence, focussing upon the objectives of market development the 5
GUM needs to re-enforce some of its advertising and marketing promotional strategies.
However, being a long stayed chewing gum brand in the market segment the
Wrigley’s 5 Gum has its faithful lot of customers. However, with more and more emergence
of similar market players such as trident gum there is increased competition to the survival of
the brand in the current market. Hence, constant revaluation and modification of marketing

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strategies are required. This could be done by focussing more upon the changing customer
demands which helps in designing of an effective marketing plan. Additionally, focussing
much upon the advertisement and promotional strategies can also help in attracting the target
customer segments. For example, the use of social media had gained importance in the
current century and has wonder outreach. Therefore, using some of these advertising and
marketing channels can help in attracting wide customer base along with developing
sufficient awareness regarding the product.

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References
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Bitner, M.J., Patrıcio, L., Fisk, R.P. and Gustafsson, A., 2015. Journal of service research
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