Who among us has not tasted a lollipop from the famous global company Chupa Chups? Strawberry, vanilla, caramel, cola, yogurt ... so many flavors offered by Chupa Chups, affording us delectable pleasure.
We will briefly present the company Chupa Chups, as this topic is already well developed in the record that has been proposed in support of this study. Nevertheless, it seems useful to recall that the company Chupa Chups is a company of Spanish origin (more precisely, it was conceived in Villamayor as the new incarnation of the former jam company called Granja Asturias). The founder is Enric Bernat, who started this company with the idea of making candy that would not stain the consumer's hands ("a sweet ball on a fork").
The company was founded in Asturias in 1958 and therefore it must be said that the company Chupa Chups is the creator of the iconic lollipop of the candy world! Although the company now offers various confectionery products, the lollipop remains the flagship product of the firm, with a well developed strategy revolving around this product.
Therefore, this study will be based primarily on the strategy adopted by Chupa Chups. The company offers other products such as SMINT, a minty candy, and even a fragrance range named "Love Trap". Chupa Chups is the world leader in the market for lollipops, in 2005, it commanded 70% (more precisely 73.7%) market share in France with 4 billion lollipops sold in over 150 countries!
Moreover, this lollipop is estimated to be used by 92% of the consumers aged between 6-35 years. This success is largely due to its strategy of innovation and differentiation, which will continue in 2006 with the expansion of its range of sugarless products. This study will be divided into two major parts, each with its theme and its problems.
The first part deals with the retrospective strategy of Chupa Chups to become the market leader in lollipops. The first major problem of this part is as follows:
Therefore, we can examine the strategy actually implemented by Chupa Chups to ensure that it remains the leader in its market, and remain on the top in the competitive confectionery market.
To address this problem, we shall undertake a strategic analysis of Chupa Chups in general, followed by Strategic Business Area (SBA) of the company.
Following an in-depth analysis of the strategic management of the company, we can offer solutions to revive the flagging sales of the company (a sharp decline in sales between 2001 and 2004).
What are the strategies and marketing resources in place to re-launch the company and to ensure a similar success with the Cremossa, the current leader of sugarless lollipops?
To address this problem, we will examine the company's marketing plan, which will identify, among other objectives, that which should be followed logically from the action plan, i.e., the actions to be implemented to achieve these goals.
There arises no question of analyzing the company strategy without analyzing the various SBAs. Therefore, the strategic segmentation will be followed by the BCG matrix, Porter's model and finally the McKinsey analysis.
Tags: strategic analysis of Chupa Chups, Granja Asturias, McKinsey analysis
[...] Strategic analysis of each of the activities of Chupa Chups In this part, we will analyze each of the SBAs of Chupa Chups. It should be remembered that this study focuses on the SBA of Chupa Chups relating to its line of lollypops. These SBAs are three in number and include “traditional” SBA, “whimsical” or “fanciful” SBA and “dietary” SBA. (cf.I. A.) Nevertheless, it is best to recall the protocol SWOT and what it means as this protocol will be followed for the 3 SBAs. [...]
[...] To address this problem, we shall undertake a strategic analysis of Chupa Chups in general, followed by Strategic Business Area (SBA) of the company. Following an in-depth analysis of the strategic management of the company, we can offer solutions to revive the flagging sales of the company sharp decline in sales between 2001 and 2004). What are the strategies and marketing resources in place to re-launch the company and to ensure a similar success with the Cremossa, the current leader of sugarless lollipops? [...]
[...] For example, a Carambar can certainly replace a Chupa Chups in the mind of the consumer, but let us not forget that Chupa Chups can also replace a Carambar. Our strategy is therefore to reflect this power as well as the weakness due to substitution. We will now study Haribo: The 2 nd largest competitor of Chupa Chups, Haribo is also the second largest brand in the market behind Cadbury Confectionery. Haribo is extreme popular, and while all its products are not necessarily known to the general public, some such as strawberries or Tagada Dragibus are as popular as the Chupa Chups lollipop. [...]
[...] Market analysis of the competitors of Chupa Chups and the competitive position of the brand: The market has already been established, which is why, we only need only to focus on the most threatening competitors of Chupa Chups here. Also, Chupa Chups has many competitors, and analysis of all of them does not seem legitimate. Indeed, only three competitors (or groups of competitors) seem present a real threat to Chupa Chups according to the first part of this study. Therefore we will analyze competitors Cadbury, Haribo and some other private brands (MDD) here. [...]
[...] Our range of gifts is called the Chupa Chups Cremosa dessert flavors. More details: This lollipop, the Cremosa Dessert flavor, will be made without sugar, and with fat, to meet the requirements of Dietetics. In addition, the flavors that will be used to flavor these lollipops will be natural flavors, to counter potential criticism from the organic market, which also seems to be growing. The recipe of Cremosa will be respected, and these lollipops will be filled with cream. In addition, we will seek to create an original taste to differentiate ourselves from competitors, as well as our traditional pacifiers, to avoid confusion in the minds of consumers. [...]
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