Dairy Milk lags market as Galaxy steals share
LONDON - Cadbury's flagship Dairy Milk brand has lost market share to arch-rival Galaxy.
According to the annual Biggest Brands survey compiled exclusively for Marketing by TNS, Dairy Milk lost share in the take-home confectionery sector, posting growth below the 2% market rate to reach a sales value of about £200m. By contrast, Galaxy grew 12% year on year to about £80m.
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Jan Jesenovec, confectionery analyst at TNS, said that Dairy Milk's loss of share may be due to a lack of NPD. 'Advertising will not significantly increase your sales,' he added. 'It simply reinforces the positions of big brands.'
Dairy Milk and Galaxy use very different marketing strategies, and Galaxy attributed its strong performance to its unique positioning, which targets women in 'indulgent moments'. The brand has also been boosted by several high-profile partnership deals, including ties with the Sex and the City movie and the British Book awards.
The majority of the brands surveyed experienced value growth due to price inflation. The take-home confectionery market as a whole grew 6% year on year to reach £2.48bn, and nine of the top 10 brands in the market increased their sales year on year.
This week, Cadbury shifted its global ad account out of Publicis and into Saat-chi & Saatchi Fallon group. A spokesman denied there had been a lack of innovation, adding that its latest data showed growth.
Chocolate market
- Cadbury increased market-ing spend for Dairy Milk by 197% from August 2007 to July 2008, compared with the same period a year earlier.
- Galaxy grew 12% year on year to reach a value of between £75m and £80m, while Maltesers grew 8% to between £70m and £75m.
Source: Nielsen, TNS/Marketing Magazine Biggest Brands 2008
See the full 2008 Biggest Brands report online:
Biggest brands: Top 50 grocery brands by sales 2008
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Comments
John Bunyard - 23/09/2008
Hold on a minute. We've been hearing for months what a triumph Gorilla is for the new wave of agency creativity – yet now we're told the only thing that's moved is the account. Shurely shome mishtake?
Louise Kennedy - 23/09/2008
Lack of new product development - more fruit-only chocolate, nuts are horrible! The new cranberry and granola and apricot crunch? - That was my doing writing to their research and development department, er, yeah, it really was!
Jeremy Lee - 23/09/2008
No mistake - while Gorilla might have tickled the fancy of the creative community, this does not translate into business success.
Antony P - 23/09/2008
If you follow this link, you'll get a different take from the early days of the ad. Contradictory data? Or perhaps it's simply the sales "blip" from a spectacular ad versus the effectiveness of a comprehensive and relevant marketing plan? http://www.warc.com/News/TopNews.asp?ID=22670&Origin=WARCNewsEmail
A DIAZ - 23/09/2008
Article in Campaign next week 'Fallon - the new Lowe'?
George Nimeh - 23/09/2008
"Jan Jesenovec, confectionery analyst at TNS, told Brand Republic that "Advertising will not significantly increase your sales. It simply reinforces the positions of big brands." There you have it folks: Advertising doesn't increase sales. Does anyone else think this is a complete load of rubbish? Philadelphia retailing tycoon John Wanamaker once said, "I know that half of my advertising doesn't work. The problem is, I don't know which half." I'd say Cadbury should know which half ain't working. http://www.i-boy.com/weblog/2008/09/cadbury-channels-john-wanamaker.html
John Bunyard - 23/09/2008
Niall Fitzgerald \(ex-Unilever boss) said we have to update that to '90% isn't working, but we don't know which 90%'. It does work if you know what you're doing - the question is, how many do?
Mackenziehead - 24/09/2008
Don't think the ad idea is to "blame" for poor performance. They've had salmonella in the chocolate and as pointed out above, Galaxy has been sharper on NPD Also as the smaller challenger brand, it's easier for Galaxy to score some growth points Question is this. How bad might the Cadbury's numbers have looked without the Gorilla?