FREE ESSAY ON TIME OUT - PROJECT OF CADBURY IRELAND

TIME OUT - PROJECT OF CADBURY IRELAND

1.What criteria did Cadbury Ireland use in developing TimeOut? 
Cadbury's Ireland in determining criteria for developing TimeOut, looked at it's
strengths and competencies which it felt it had expertise or could gain competitive
advantage in. It identified three technologies, which would fall into this category.
I.Extrusion
2.Flake chocolate manufacture
3.Wafer making and baking
Cadbury's Ireland combined these three area's of excellence (i.e. core competencies) to
develop a product to fill the bridge-brand position, which would directly compete against
it's competitors of Twix and KitKat in the bar-biscuit market. Cadbury must also consider
another factor in developing TimeOut. This is Dairy Milk chocolate. Cadbury Dairy Milk
chocolate is made from fresh Irish milk and is used in all of Cadbury's products, as well
as being marketed separately under the Cadbury Dairy Milk brand.
But the most important criteria for developing TimeOut was the way in which Cadbury
defined market segments. Cadbury defines segments on the basis of how customers buy
rather than on how a product is made. This method of defining market segments allowed
Cadbury Ireland to identify a significant consumption pattern whereby the take-home
segment is increasing its share of the confectionery market. They also noticed an overlap
in the marketplace where brands which were traditionally seen as bars, were now spreading
out into the biscuit market. This criteria meant that Cadbury Ireland would have to
develop a product, which would sit into this bridge-brand position between the bar and
biscuit market, i.e. it would be equally satisfying to the confectionery market as a bar
in it's own right, and to the biscuit market as a snack at break time.
2.Which marketing mix variables were most important in positioning TimeOut?
The marketing mix variables also known as the 4 P's are product, pricing, packaging and
promotion. The most important marketing mix variable in the positioning of TimeOut were
product, packaging, and promotion. Given the power of retailers Cadbury had little
discretion in the determination of the price of TimeOut. Therefore the issue of pricing
was not that important in the positioning of TimeOut. In positioning TimeOut as a
bridge-brand product between the bar and biscuit market the most important marketing mix
variable was essentially the product. Cadbury Ireland needed to create a product which
would contain enough biscuit to satisfy the biscuit market, while containing enough
chocolate to equally satisfy the bar market. They achieved this through a technological
advance which allowed them to layer flake on to wafer. TimeOut consists of a flake
centre, sandwiched between two wafers and covered in dairy milk chocolate. In TimeOut,
Cadbury Ireland seemed to of found a unique mix of chocolate and biscuit to satisfy both
markets. Other considerations under product were the name and the wrapper layout. 
It was discovered that using a name indicating the timing and situation in which the bar
should be consumed greatly enhanced the customers understanding of what the product was
designed for. The name TimeOut effectively portrays the intentions of TimeOut to be a bar
taken at snack time. This idea was supported by the picture of a clock and a mug on the
wrapper, to again suggest usage at snack time. The colour scheme of the wrapper is also
interesting. 
The blue/red/yellow colour scheme makes TimeOut stand out in a market which is
predominantly uses darker colour schemes such as black/brown or gold. The lighter colour
scheme of TimeOut is more easily associated with light biscuity bars, referring to the
wafer parts in TimeOut, and also giving the image of TimeOut as a lighter, healthier bar.
TimeOuts packaging configuration was very important. If TimeOut only established
themselves in standard format first and then proceeded to expand into all the different
formats at a later date, they would not have made the required impact on the bridge
brand market. Therefore, they produced in a variety of formats from the outset, i.e.
standard, 5-pack, breakpack, and treat-size. This allowed them to meet the needs of the
numerous different user groups of the product.
On it's release TimeOuts positioning was supported by heavy advertising and promotion
campaigns. TV and radio advertising emphasised the TimeOut at any time theme, while
promotions such as giving a free TimeOut bar with every standard box of Lyons tea, the
largest selling brand of tea in Ireland, clearly marked TimeOuts desired positioning as a
beverage accompaniment. On the other hand, TimeOuts generous distribution of free
samples, both at in-store promotions and at street activities, showed it wanted to b
taken seriously as a bar in it's own right. Thus through the marketing mix variables of
product, packaging, and promotion TimeOut clearly positioned itself in the bridge-brand
position of the bar and biscuit market.
3.How did the positioning and marketing strategies of its main
competitor influence TimeOuts positioning?
The bridge-brand market is a very competitive market, and positioning is a very important
factor to success. TimeOuts positioning and the positioning of its main competitors is
best illustrated by the following positioning map.
Bar Market
Bridge-Brand Position Bar & Snack Market
Low Price High Price
Snack Market
Among TimeOuts main competitors in the bridge-brand market are Twix, KitKat, Cadbury
Snack and Jacobs Club Milk. As shown in the positioning map above Twix is positioned in
the bridge-brand market but is not as concentrated in the snack market
as some of the others. Twix is positioned on its good value-for-money, even though it's
price is about that of market par. It's positioning in the snack market is personified by
the slogan Whenever there's a snack gap. Twix fits. Twix's marketing strategy is backed
up by the heavy advertising it continues to receive. Another main competitor