Marketing Design and Innovation: Wrigley's Double Mint Product Launch

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This essay examines the launch of Wrigley's Double Mint in India, analyzing the marketing design and innovation strategies employed by Mars Inc.'s subsidiary. It explores the purchasing power of the Indian population, applying Maslow's Hierarchy of Needs, the Diffusion of Innovation Model, and the Kano Model to understand consumer behavior. The report discusses how Wrigley's addressed physiological, safety, social, and esteem needs through its advertising campaigns and competitive pricing. It further analyzes how interpersonal communication and innovative market publicity contributed to the product's success. The essay concludes with recommendations for customer acquisition, promotion through brand ambassadors, and owning personal retail channels to enhance the brand's market presence in India.
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Running head: MARKETING DESIGN AND INNOVATION
Marketing Design and Innovation
Student’s Name
University Name
Author’s Name
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2MARKETING DESIGN AND INNOVATION
Table of Contents
1. Introduction............................................................................................................................3
1.1 Background of the Study..................................................................................................3
2. Argument................................................................................................................................3
2.1 Purchasing Power of the Indian population......................................................................4
2.2 Maslow’s Hierarchy of Needs..........................................................................................5
2.2 1 Physiological Needs...................................................................................................6
2.2.2 Safety Needs..............................................................................................................6
2.2.3 Social Needs..............................................................................................................6
2.2.4 Esteem Needs.............................................................................................................7
2.2.5 Self actualisation........................................................................................................7
2.3 Diffusion of Innovation Mode..........................................................................................7
2.4 Kano Model......................................................................................................................9
2.5 Analysis of Customer Trends.........................................................................................10
2.6 Innovation and Novelty..................................................................................................10
2.6.1 Product Anatomy.....................................................................................................11
2.7 Balanced Scorecard........................................................................................................12
3. Recommendations................................................................................................................13
3.1 Customer Acquisition through Word of Mouth.............................................................13
3.2 Promotion through Brand ambassadors..........................................................................13
3.3 Owning personal retail channels....................................................................................13
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3MARKETING DESIGN AND INNOVATION
4. Conclusion............................................................................................................................14
Reference List..........................................................................................................................15
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4MARKETING DESIGN AND INNOVATION
1. Introduction
Wrigley’s’ a subsidiary brand under Mars Inc. launched the product “Double Mint” in
India recently. The product is a mouth refresher. The launch of the product in India is
launched by the company after making a closely scrutinised study of the market
demographics. This is the first mouth refresher in pellets shape, launched in India that is
sugar free. The reason that prompted Wrigley’s to launch the product in this country have
been analysed in detail, in this report. The product is launched as a fundamental product that
is necessary for boosting confidence. This publicising strategy has been analysed in detail in
the course of this report. In the context of the launch of Double mint in India by Wrigley’s,
the major prospects of the yet enlarging confectionery industry of India have also been
analysed and reflected in this report.
1.1 Background of the Study
The report analyses the launch of “Double Mint” mouth freshener in India by
Wrigley’s. This product launch can be analysed as a steadfast endeavour of the company
Mars Inc. to step in to India. The subsidiary Wrigley’s has targeted India as one of the
potential and critical target market. Accordingly, “Double Mint” was launched in India on the
23rd of August in 2016. This study aims at analysing the subtle factors like Marketplace
demand, product benefits and Clear differentiation that Wrigley’s is going to introduce into
the mouth refreshing industry of India. Besides, the factors like product development as well
as commercialisation of the product are being studied in this report with special emphasis on
the market of mouth refreshing products densely crowded by the small and micro enterprises.
However, as a premium product brand, the advertising campaigns and the brand endorsement
done by Wrigley’s have placed them at strategically unique slot. Wrigley’s are in an attempt
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5MARKETING DESIGN AND INNOVATION
to transform the simple mouth freshening product Double Mint into a part of lifestyle of the
various sections of the Indians.
2. Argument
2.1 Purchasing Power of the Indian population
The purchasing power of the average lower middle class of Indian is generally low.
This is why, the launch of premium products in India is risk laden. However, the industry that
Wrigley’s is into, has a huge customer base. Hence, influenced from the views of Goldratt
(2017), it can opined that in spite of high competition, the product launch is competitively
risk free. The product failure proportion of premium products is 48%. On the contrary, the
chances of failure of low priced products in India is 72%.
Figure1: Comparison between prospects of various kind of consumables in India
(Source: Khajavi et al. 2015)
Majority of the Indian population, that is about 1.2 billion of the people are either
minor or having insufficient wages. Hence they have a mentality of curtly avoiding high end
the launch of
premium products
in India is risk laden
In spite of high
domestic competition,
the launch of low end
products is risk free
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6MARKETING DESIGN AND INNOVATION
products that pertains to foreign brands. This is why, Wrigley’s made this product,
customarily for the Indian market. The ingredients for the product are manufactured
indigenously in India by local enterprises that are franchised with the company. This makes
the company keep the price competitive and gain smooth market entry. However, as Kahn
(2014), opines, the purchasing capacity of the average Indian middle class have increased by
5 to 6 % within the last decade. This one of the major factors that influenced the marketers of
Wrigley’s in India to launch the product in the Indian market. Double Mint was supposed to
be launched in India by 2012. However, according to Morgan et al. (2015), the turbulent
economic disparity in the purchasing trends of the low priced products in India prompted the
marketers of the company to delay the launch of the product in the country. However stable
economic growth in the country since 2015 have assured Wrigley’s about the market
potential in the country.
2010 2012 2015 2018
0%
10%
20%
30%
40%
50%
60%
70%
80%
21% 19%
35%
30%32% 28%
41%
76%
Parity in Purchasing power of the Indians
average middle and lower class
Purcahsing of high end products Purchasing of low end products
Graph1: Parity in Purchasing power of the Indians average middle and lower
class
(Source: Stark, 2015)
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7MARKETING DESIGN AND INNOVATION
2.2 Maslow’s Hierarchy of Needs
Maslow’s Hierarchy of Needs puts forwards that the psychological needs of a
customer base are directly related with the purchasing trends of a customer base. The five
divisions of the hierarchy are:
2.2 1 Physiological Needs
Maslow held the opinion that instinctive impulses do not direct the purchasing spree
of humans for most of the time. It is the outcome of a monitored physiological requirement.
The marketers of food and beverage industry cam consider product marketing based on
addressing the physiological needs of the customer base. As per Fuller (2016), it is difficult to
address the low end consumable products as essential for the physiological needs of a person,
particularly in a LDC like India, where the purchasing parity is low. This is why, the
marketers of Wrigley’s India had decided to make the product give a luxurious look and feel
through various advertising campaigns and keeping the price competitive (Rs. 10 for each
pack) they made the customers feel that they could get hold of a luxurious product at
reasonable price. Besides that, other factors like promoting the necessity of a mouth
freshening product for the boosting of personality during interacting with people have created
physiological craze among the youth of the country to consume such products. Considering
that, youth population in India is about 75%, this has been a highly beneficial marketing
move by the campaigners of Wrigley’s India.
2.2.2 Safety Needs
The safety needs of the people of India is difficult to be tinkered by means of
marketing campaigns of the “Double Mint” product. However in another sense, the youth
consider it safe to consume the product before speaking in public spaces or during
interactional conversations.
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8MARKETING DESIGN AND INNOVATION
2.2.3 Social Needs
The advertising campaign of Wrigley’s “Double Mint” product includes a message
that while making a fresh start at relationships confidence of speech is very essential. This
campaign appropriately addressed the social needs of the Indian Youth and customers were
enticed to the idea. This directly affected the sales growth and by the middle of 2017. As
opined by Kettunen et al. (2015), the sales rate had increased by 28% of that in the previous
financial year. The ad campaign used a love song that highlighted the idea that new love can
happen by gifting a “Double Mint” pellets box to the partner. As such, the product became a
new sensation among the youth of India. “Double Mint” is a single mouth freshening product
whose market survey in India reveals that about 85% of the customers of the product are
youth below the age of 28.
2.2.4 Esteem Needs
The product was able to address esteem needs of the customer. Every customer have
the affinity for products of luxury brands, irrespective of income range. This product had
become a new sensation among many target customer groups. The competitive price made it
affordable also. An example can be cited. Brand awareness is the new marketing trend in
India (Lee et al. 2014). Customers prefer a pair of jeans of Levi’s over the same and similar
looking product of a local brand only because of the brand name and affordability (Cooper,
2018). Levi’s offers the average customers products at an affordable price range also. The
same happened with Wrigley’s also. In spite of high market competition, people began to
prefer the “Double Mint” due to the premium feel associated with consumption of the
product.
2.2.5 Self actualisation
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9MARKETING DESIGN AND INNOVATION
Being a mouth freshening product, “Double Mint” could not generate value of self-
actualisation for potential customer bases. However, the value generated by the product or the
advertising campaigns of the company commendably met the criteria of the Maslow’s
Hierarchy of needs.
2.3 Diffusion of Innovation Mode
The theory of the diffusion of innovations ponders over the rate at which new product ideas
are popularised among various cultures. In the context of this report, how interpersonal
communication led the way for the product becoming a market sensation would be analysed.
According to Thoumrungroje (2018), a central author or agency is instrumental in spreading
consciousness or engaging the customers with the values of the product in the definite
customer market. The theory also allows space for innovative market publicities. The
company had carried out a well conducted market survey analysing the demographic
customer trends in the Indian market for various types of confectionary and mouth freshening
products. The analysis made it evident that the customers of such products are generally
young Indians aged between 16 and 35.
According to the managing director of Wrigley’s India, the Double Mint product is an
intrinsic sales campaign of the global brand Mars Inc. of which Wrigley’s is a subsidiary. In
the market of Mint pellets of India, “Double Mint” is a flagship product that have subtly
endorsed values like freshness in everyday activities and the essence of long standing
relationships. In the society where the value of relationships is gradually depleting, the
campaign and value generated by Wrigley’s is something innovative (Ranjbar, Mansour &
Azami, 2015). Instead of focusing on the why people should have Double mint, the ad
campaign shows a beautiful journey of a boy and a neighbouring girl, who were separated by
distance. Latter in their lives they realise each other’s significance and also understand that
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10MARKETING DESIGN AND INNOVATION
small things like sharing love and joy hold lot of value in lives through the gifting of “Double
Mint” to the girl. Hence, instead of focusing on the idea of boosting the confidence or
refreshing the mood, the ad campaign focuses on a different theme which was successful in
gathering a large appeal among the masses of Indian youth. Besides that, the ad campaign
also spread the significance of a fresh start. The boy and the girl meet through a chance
encounter and their beautiful journey starts from the immediate sharing of a Double Mint.
Hence, it is evident that the marketing campaign of Wrigley’s helped to generate vales in the
society that in turn helped to foster sales growth for the product in the Indian market
(wrigley.com, 2018).
2.4 Kano Model
The Kano Model can be applied in the context of managing customers’ rate of
satisfaction. The Kano model emphasises that customer satisfaction and customer loyalty is
directly related to brand loyalty. According to the Kano Model, any organisation prior to the
launch of any absolutely now product in any big customer base, should be aware of the
business parameters on which success of the product launch rests. According to the views of
Thomson & Crocker (2015), one roadmap is to be ascertained where the performance drivers
that are associated with customer satisfaction should be particularly reflected in contrast to
those which are related to dissatisfaction of the customers. One important outcome of the
widespread demographic survey conducted in the Indian market prior to the launch of the
“Double Mint” product clearly identified the basic discriminatory factors behind the success
of the few confectionery brands in India. The Kano Model segregates products into three
categories, namely Must haves, Linear Features and Delighters. The product of Wrigley’s do
not fall into the category of “Must Haves.” One odd “Linear Feature” of the product is its low
price. Many of indigenous organisations had tried to enter the market of mouth fresheners
with high product promotions. However, they have not been able to sustain in the market
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11MARKETING DESIGN AND INNOVATION
with dominance (Walker, Decker & McClements, 2015). The reason is that similar products
are launched by local manufacturers within few days of the launch of any interesting and
appealing product in the highly competitive market of mouth fresheners and other low priced
confectionery products. The product launched by Wrigley’s would fall in the category of
“Delighters”. The glamorous publicity of the advertising campaigns and targeting the right
customer groups helped the company gain brand loyalty easily. Attractive packaging of the
products was another [positive factor that enticed the customers. Lastly, as opined by Junior
and Morand (2016), other product marketing offers like free gifts or chances of winning gifts
through lucky draw on buying the products aroused the interest of the buyers. These are the
approaches in which the company aimed to establish brand loyalty and establish their
customer base in India.
2.5 Analysis of Customer Trends
A spate of innovative products have encompassed the market of confectionery and
mouth fresheners in India. As informed by De Pelsmaeker et al. (2015), the industry have
seen the launch of new products by many big brands in the Indian market like Dabur, Perfetti
and so on. Still, these two potential players in the market have occupied only about 8% of the
market.at least 3200 small and SME brands are associated with the confectionary and mouth
freshening industry of the country. However, this industry is also moving into
premiumization. Another organisation that is popular with the customers of India is the
Cadbury Company. However, Cadbury is mainly associated with innovations in chocolate
products and not much into the mouth freshening sector.
Since 2013, the valuation of this industry started to increase. In 2014, the value of the
industry was Rs. 47,140.4 million (Hunter, O’callaghan & Califf, 2015). The greatest share of
the market of this industry since 2010 had been with Perfetti with most popular products in
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12MARKETING DESIGN AND INNOVATION
the market like Alpenliebe, Chlor-Mint and similar other products. Another 12 to 15% of the
share of the market lies in the hand of ITC India Ltd. However, major section of the industry
in India is still under competitive zone with major players like Ravalgaon Sugar Farm, Parle
India and Wrigley’s India attempting to emerge as the greatest exponent in the market. The
prospect for Wrigley’s is highest among the other competitors because the company has
much higher capital investment and product innovation than the others and the marketing
campaigns of the company are also more potential.
2.6 Innovation and Novelty
Yogesh Tiwari, the managing director of Wrigley’s for India has opined rightly that
the product market of mouth refreshing products in India is open to innovations. The gum
market of India is 1000 Crore Rupees. The main innovation of Double Mint is that Wrigley’s
uses original extracted flavours and there are varieties of the flavours of the product in India
(Beckley, Foley & Herzog, 2017). The first factor that attracted the brand to India is that
there are no major brands operating in the same industry, particularly foreign brands. The
company has also conducted successful product prototype testing for the Indian market that
have made the launch a success.
2.6.1 Product Anatomy
2.6.1.1 Core Product
At the core of the product “Double Mint” by Wrigley’s is the Gum Base made of
Arabic Gum. Corn Syrup and Glycerol (2%) and a blend of natural and artificial flavours.
The company uses 70% natural flavour extracts that helps to retain the taste of the products.
Since the percentage of natural flavours is high, BHT is mixed with the product (Kachouie &
Sedighadeli, 2015). Permitted level 1 colours are also mixed with the gum base. The versions
of Double Mint that are released in the Indian market are all vegan.
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13MARKETING DESIGN AND INNOVATION
2.6.1.2 The actual/real product
The product comes in the form of pellets, white in colour. Based on the favour the
colour of the gum also changes. The pellets have a glossy texture that gives it a premium
look.
2.6.1.3 The Augmented Production
The packaging of the product gives it the factor that gives it a very premium feel. The
marketers analysed that there are many similar products that com in plastic strips. Hence, in
order to make a difference, the company decided to fill the pellets in small pocket containers.
There are other similar5 looking products in the market also that have a premium look and
comes in similar containers. However, the price competitiveness of the product keep it ahead
of competition.
2.7 Balanced Scorecard
Objectives Goals Indicators Initiatives
Financial
Perspective
Establish new
customer base
in India and
gain highest
sales value
Cover 25%mof
the customer
base in India
Financial
Statements
Ensuring the
engagement of
the local
distributors who
have a prolific
knowledge of
the local retail
market
Customer’s
Perspective
Make the
product a
sensation
Multiply the
sales per
customer unit
Invoice returns
for every retail
Innovate
interesting offer
for the customer
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14MARKETING DESIGN AND INNOVATION
among the
customers
by 0.42. unit like attractive
packaging or
free gifts.
Perspective of
Internal
Process
Decentralise the
revenue sources
by setting up
alternative
market in India.
Decrease
operational
costs by setting
up the Indian
business sector.
Study of the
value of sales
percentage
every financial
year
Online sales
reporting
Learning as
well as Growth
Prospective
Gaining
sufficient
demographic
knowledge and
develop
marketing skills
to topple the
entrants
Have an
efficient and
skilled sales
team that can
endorse the
product in the
tough and
competitive
market of India.
Reports of
internal
proficiency
surveys
conducted
among the
company.
Starting the
endeavour of
recruitment and
employee
selection for the
Indian market
3. Recommendations
3.1 Customer Acquisition through Word of Mouth
The company should engage customers through Word of Mouth publicity of the
product. The product should be marketed through small temporary stalls, other than regular
retail outlets. This would let the customers become aware of the new product in the market.
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15MARKETING DESIGN AND INNOVATION
This is the most feasible way of gathering word of Mouth publicity for the product. WOM
campaigns have the potential to collect huge customer bases.
3.2 Promotion through Brand ambassadors
One important strategy that big brands use to give their products the premium
distinction is the promotion via the mouth of reputed celebrities. This helps in gathering
attention of the public easily.
3.3 Owning personal retail channels
Retail channels that are owned by the company should be closely linked with the local
distributors. The small retailers should be given incentives for making promotions of the
product and increasing sales.
4. Conclusion
Analysing the market prospect of the confectionery industry of India, it can opined
that innovative brand management is an integral part of a success product launch. The
exclusive advertisement campaign and the allurement to the youth section of the country gave
the product the necessary exposure. The innovativeness of the launch campaign helped the
company to place its product before two or three major competitors in the market. Besides,
analysing the sales growth of the product in India, it can be opined that the company achieved
loyalty in the Indian Market based on the factors like price competitiveness, large uptake of
the product by young generation of India and lastly the investment of large market capital.
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16MARKETING DESIGN AND INNOVATION
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17MARKETING DESIGN AND INNOVATION
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