5 C ANALYSIS: WONKA CANDY

COMPANY: WONKA

Product line.-  Candy

·         Laffy Taffy

·         Gummies

·         Pixy Stix

·         Gobstopper

·         Runts

·         Fun Dip

·         Mix-ups

·         Bottle Caps

·         Spree

·         Nerds

·         Chocolate

·         Sweet Trats

·         Shockers

·         Kazooles

Technology and experience.- Wonka Candy belongs to Nestlé, a company that has the last technologies and specific scientists that work on each area of production to bring the latest innovations and the best quality. Wonka has existed since 1953, and was some years later added to Nestlé, gaining many years of experience in the candy making industry.

Image in the market.- This brand has one of the most innovative, creative and fun images in the market. Wonka takes a lot of care of its marketing strategies, makes tempting promotions and has a lot of interaction with the consumers. Besides they are delicious, colorful candy. 

Culture.-  “Feed your imagination” (slogan). Wonka is dedicated to the art of producing fun, innovative, high quality confections for candy lovers of all ages.

Goals.- It belongs to Nestlé, whose slogan is “Good food, good life” and their goals are to enhance people throughout life with good food and beverages. Their goals are to be recognized as the world’s leader in nutrition, health and wellness, trusted by stalk holders and to be the reference for financial performance in its industry.

 

COLLABORATORS

Distributors.- As part of Nestlé, Wonka exists worldwide and divides in zones for its distribution, Europe, America and Asia/Australia/Africa, they use a globally managed business. Wonka is specially owned by Nestlé USA Inc. and the distribution is worldwide.

Suppliers.- Nestlé suppliers code establishes non-negotiable minimum standards required all over the world and vary depending on the main providing countries which are:  Bulgaria, China, Croatia, Czech Republic, England, France, Germany, Italy, Hungary, Japan, Poland, Portugal, Russia; Serbia, Spain, Tahiti, Turkey and Uzbekistan.

Alliances.- Wonka Candy depends on a very big, worldwide enterprise with no alliances, but many branches all over the world.

 

CUSTUMERS

Market growth.- Nestlé is all over the world and sells products for a very wide market in Europe, America, Asia, Australia and Africa, it has sectors as Nestlé water, Nutrition and other food and beverages. Wonka Candy´s market is in many countries where Nestlé is, but specially in North America.

Market segments.- Nestlé has several brands and market sections. Wonka is part of the chocolate and confectionary category, whose greater expansion is in North America. Directed mainly to children, but also to all the candy lovers, with high or average acquisitive power, mostly in the USA.

Benefits that the costumer is seeking, tangible and intangible.- In food, customers look for quality and sfety, and that’s what Nestlé provides and its main priority. They can immediately respond to any customers inquiry, question or concern. Wonka focuses on teens and children who want good flavor, quality and attractiveness.

Motivation behind the purchase, value drivers and benefits vs cost.- Nestlé keeps on investing in R and D, behind every products a team of designers, nutritionists and scientists are. Due to the high quality of the products offered, and that they are generally exported, Wonka candy tend to be expressive, but they offer in exchange, benefits such as safety, nutrition, taste, texture and convenience.

Decisions making unit.-  The main heads in Nestlé are Peter Brabeck and Paul Burke, and over the world distribution officers specialize in the close decision making, the responsible for Wonka is Nestlé USA, branch of “Other food and beverages” of Nestlé.

Retail channel.- Wonka candy are specially consumed in the US and Canada, where they can be find in every store. In other countries such as Mexico, these candy can be bought in transnational stores as Walmart or big franchises as OXXO or 7 ELEVEN.

Costumer information source.- Costumers can read the website and contacts number in every label, apart from the facebook website. In North America there are ads everywhere too.

Buying proces.-  There is not a very careful comparison it is more as an impulse of buying it.

Frequency of purchase.- They can be purchased in any time of the  year and very frequently, every time anyone wants some candy.

Quantity purchased.- the quantity is generally one of the products offered at a time.

Trends.- Children of all times have liked candy, people in general, and Wonka is always innovating and being creative, so they don’t depend much on trends. Maybe new trends rise, but children will always like colorful candy, that changes with the years and adapts to new fashions.

 

COMPETITION

 

Actual or potential.- Mars Candy is the strongest competitor, it provides all kinds of candy of good quality in different prices, very famous in the USA.

Direct and indirect.- Mars represent the direct competition, Hershey´s, speaking about chocolate, Jolly Ranchers and Zachary candy. Indirect are ice-creams as Hollanda and Blue Bell, juices as Minute Maid, chips as Pringles or sweet bread and cookies as Twinkies and Oreo.

Positioning.- Wonka is in the USA candy favorite list, in the number 46 out of 100, its not that bad. In the rest of the world they unfortunately are much less wanted due to the fact of exportation.

Market shares.- It doesn’t have a big share in the candy market, since it is only very famous in north America, and not even in the top 20. The consumer are mainly children and teens, a great part of the population, but only a few have a high acquisitive power.

SWOT of competitors.- Mars S: it is a very company, with variety and very high quality.

W: prices are not low in most of the cases.

O: if somebody can’t afford the expensive mars candy, they can have a cheaper candy of the same company. People loves their high quality.

T: many other companies offer different candy at lower prices.

Hershey´s S: very high quality chocolate.

W: they only offer chocolate, have a limited market.

O: a lot of people likes chocolate, and this one in very good.

T: they have a lot of good competition and limited market.

Vero S: they have a wide market and are cheap.

W: not very high quality, and exist only in Latin America.

O: accessible for all.

T: there are much better quality products and this competitors exist worldwide, there are bigger brands.

 

CLIMATE

Macro-environmental factors.

Political and regulatory environment, policies and regulations: From USA Nestlé, they don’t have many exporting problems since the US has great commerce treaties with almost every country in the world as the Mexican-American TLC. But many other countries with which the US doesn’t have good relations don’t accept tax free products, or countries whose economy would let this candies to be bought. Wonka candy accomplishes all of the WHO regulations as all the Nestlé ´products, and most of the countries ´s internal regulations.

Economic environmental business.- The inflation rate and the taxes change frequently, but relating to candy, there are not so drastic changes as to impact a brand´s market. Producing only for North America keeps it sort of protected from taxes and sudden inflation. But if global economies are affected, candy is not a first necessity, and so many people wouldn’t buy them and less if they are expensive.

Societies trends and fashions.- World´s fashions tend to be toward innovative and creative, and that´s what Wonka is, and anyways if a new candy arrives to the market, it will have an impact. Everybody always likes candy.

Technological environment.- Technology constantly evolves but that´s not a problem for Wonka, since it belongs to a rich. Innovative enterprise and its main organ is in the richest country in the world with a great technological power. Nestlé and Wonka are always seeking for new technologies to be applied on their products.

 

 

 

 

National Confectioners Asociation. (2012). Recoverd on September 10th 2012, de http://www.candyusa.com/

Nestlé. (2012). Nestlé. Recovered on SEptember 10th, 2012, de http://www.nestle.com.mx/