Discovering the Secret Behind Snickers' Popularity in Australia
Discuss about the Business Analysis of Snickers Hungerithm.
Snickers Hungerithm, from the parent company Mars has won the bronze Effie award in Australia which has gained huge popularity especially after its famous advertising campaign Hungerithm. The Australians have brought the concept of snickers chocolate bar as a potent solution for hunger, as the advertisement explicitly makes it clear. What has accounted for Snickers’ popularity in Australia is the well-reputed act surrounded with the chocolate bar helpful for reducing stress and hunger. Snickers media campaign of hungerithm has witnessed a massive 1740% proliferation of social traffic accompanied by a 67% increase of the sales rate proving them one of the best advertisements (Hudson et al 2015). The hungerithm is responsible for assessing the prevalent mood of the internet which helps in the adjustment of its price. In a nutshell if the prediction of mood verges on the contemptuous side, the price would tend to get cheaper. Hungerithm is responsible for fathoming around 14,000 social posts in a single day. What makes Snickers a breakthrough company is the fact that it has already started planning strategies to introduce the feature outside Commonwealth. Their advertisement campaign have been held responsible for adequately conveying the idea that hunger can have a huge impact on a person’s mood. The performance of Snickers have been exceptional with their media campaigns and tag lines that have promoted to their sales. In its operation Snickers have adopte to technology and innovation that have achieved improvement in cacao yields and establishment of 17 cocoa development centers (Brennan, Nguyen and Parker 2017). In its operation it has also strove to eradicate Greenhouse Gas emissions and sustainable packaging. As a result of their operations and advertising strategies, the sales rate of Snickers have increased by 15.9% gaining entry to 58-58 new markets.
Best selling Candy Bar- snickers has already gained the position of best-selling candy bar which has further gained a better market penetration with the usage of social media campaign. Apart from being rich in tastes, unlike many chocolate it is to be the healthy alternative as it mentally manipulates the consumers to consume the bars in steep hunger (Bowen 2015).
Strong Brand Image- Snickers’ brand image centers round its reputation of a healthy substitute with the ingredients such as nougat, nuts and caramels therefore it is on a pedestal higher than being a simple candy bar. It has maintained a consistent quality is being the most innovative and tasty candy bar of all times.
Exploring Snickers' Strengths, Weaknesses, Opportunities, and Threats (SWOT Analysis)
Healthy Ingredients- its ingredients have given it a good market position especially more so because of the changing market trends that focus more on health and cholesterol before buying any product. Snickers is rich in vitamin and calcium that positions it in a strong competitive advantage than the other products.
Loyal Customer Base- over the entire world it has built a loyal customer base with a market share of 7.7% and a rating of 9.4% (Bowen 2015). The customer is largely fitness-oriented. it strives to engage with the customers on an emotional level identifying with the their mood. Many consumers have downloaded the coupon into their smartphones to get hold of snickers at a reduced price.
Lack of product differentiation- the healthy ingredients that snickers use are easily imitable along with the fact there are number of chocolate bars in the market with the same marketing strategy of being healthy for instance Mounds, PayDay and Cherry Ripe. It can subsequently lead to a loss of product value and sale in the market.
Lack of cultural Acceptance- snickers can face barriers in many new markets that view consumption of nuts profane. Snickers has developed no strategy to address this immediate threat that can ultimately lead to its expulsion from a number of markets.
Market Penetration- Snickers has target number of new market with its brand available in more than forty countries (Mete, Davies and Whelan 2018). It can also expand its market by better advertising strategies and introduction of new flavors.
Variety of Flavors- it can introduce a variety of flavors in order to gain better distribution in market.
Easily Replaceable-owing to the fact that it has huge competition from Nestle and Cadbury, it can be considered as a threat. Other brands can easily imitate Snickers parading on the nutritional aspects of the chocolate bar.
Labor Costs- the labor costs in the manufacturing industry can be responsible for stunting the revenue growth.
Political- Snickers come from the parent company Mars which has received ample amount of criticisms in Australia due to its sourcing chocolate from the African countries. Politicians claims that Mars has failed to adopt a sustainable technique in using cocoa. Mars and Snickers both can be avoided by many due to its American origin.
Economic- The soaring price of its ingredients like cocoa and nuts can be threatening as well as other factors like infestation.
Unleashing the Opportunities for Snickers to Expand Its Market Penetration and Introduce New Flavors
Social- some of the hindering social factors for Mars in the industry is the ethical questions that consumers are posing. However, snickers has continued to sale at a growing rate since it targets the young adults, children and professionals as grabbing something nutritious on their way.
Technology- Snickers’ growth rate has been increased due to the technological advancements that Mars has adopted that can produce more yields at a shorter span of time. Legal- Legal factors in Australia like the banning of chocolate bars in order to reduce the ever-increasing health issues like cholesterol, fat and diabetes. These legal health warnings can have a potential impact on the growth rate of Snickers. Food safety and Regulations have imposed a number of policies on the rampant sale and consumptions of chocolate bar.
Environmental- Snickers’ packaging and manufacturing amounts to a huge pile up of waste and although Mars has taken a number of strategies to reduce landfill by 90% it is still a threatening factor for Snickers (Mete, Davies and Whelan 2018). The amount of plastic produced has also fetched the attention of environmentalists. CSR activities can help in an increased sale and awareness of Snickers.
- Without product innovation snickers can get easily swept by strong competition from the rival companies like Hershey’s (Mete, Davies and Whelan 2018).
- It can lose its favor amongst overtly health conscious people due to the recent legal changes and laws in Australia
- The rising labor costs can increase the expenses of the parent company of snickers, Mars and decrease the productivity rate unless and until it switches to cheaper technological alternatives.
- Snickers has immense opportunities due to its status as a nutritional health bar filled with nuts that has created a reputation amongst consumers of all age for satisfying hunger. Owing to this factor it has gained new market penetration (Zhang 2015).
- Mars has achieved a global market since it has adopted more sustainable ways of conducting the business like sparing attention to its plastic waste or combustion.
- Snickers has the best advertising strategies especially Hungerithumm that had previously managed to forge a real-life connection with the product that had kept everyone’s attention glued to the simplicity of the nutritional health bar. It naturally increased the sales growth to 67% in Australia (Vanwesenbeeck, Ponnet, and Walrave 2017).
- Social media has given Mars especially Snickers a huge platform to the young vibrant generation. Snickers had always made it a point to use innovative strategies to engage with their customers in an unique manner as well as capture consumers’ attention for a longer span of time, sometime for a month at a stretch. This “cracked sense of humor” that the brand has infused has and can work in favor (Zhang 2015).
- Concerning its issue with the nutrition status of health effects of a Snickers’ bar, it can generate more popularity within the mass with careful segmentation. It can start with the younger generation by sponsoring social events at schools, likewise can do the same for the middle aged generation by focusing on supermarkets and malls.
- Mars can start thinking about coming up with new variety of products high on quality and nutritional value to accept the stiff competition that has plagued the market. They can do so by introducing chocolate flavored business high on proteins.
- Creating a platform for consumer to consumer interaction regarding the product experience, their advertising campaign or the benefits of chocolate bars on health. This would foster in the creation of a loyal community base for Snickers and Mars can achieve brand advocacy in this manner. The phenomenon will give the company the opportunity to build a huge customer following that would nourish them to sustain in the market (Vanwesenbeeck, Ponnet, and Walrave 2017).
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