"Success Case Study: Magnum Chocolates - Leveraging reputation to create a promising brand extension", is part of the author's Successes and Failures research. It examines the details of and reasons behind the success of Magnum Chocolates in the UK, a new range of premium chocolates from popular ice cream brand Magnum . It delivers the critical "what?", "why?", and "so what?" analysis to teach you crucial lessons that increase your chances of launching successful products.
Magnum is well-known for its ice cream range but has chosen to release a premium line of chocolates. This makes sense since the confectionery market in the UK registered a CAGR of 2.2% during 2010-15, and this is forecast to grow, with a CAGR of 2.6% predicted during 2015-20, creating strong opportunities for Magnum. Within the confectionery market, the largest segment in terms of overall volume is chocolate, accounting for a 68.2% share in 2016. Using its recognition as a fashionable brand, Magnum has succeeded in the chocolate market.
- Examine various methods of brand extension, and remember that the extension must make sense to both consumers and the brand.
- Aspirational lifestyle brands are important for consumers, and companies understanding what these mean to consumers is essential before moving into international markets.
- Above all, quality claims must be substantiated in categories where premiumness and indulgence are important, such as chocolate.
Reasons to buy
- Use the author’s selection of successful and failed product launches and marketing campaigns from across the globe to inspire innovation.
- Reduce the risk of failure by learning from brands/products that have under-performed: failed innovation can severely impact profit and reputation.
- Understand the relevant consumer trends and attitudes that drive and support innovation success so you can tap into what is really impacting the industry.
- Gain a broader appreciation of the fast-moving consumer goods industry by gaining insights from both within and outside of your sector.
- Access valuable strategic take-outs to help direct future decision-making and inform new product development.