Marketing Analysis of HARIBO in UK

December        10

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Marketing Analysis of HARIBO in UK

Yuxin Fan; Kaili Zhang; Yuxin Qiu; Minghu Liu

Digital marketing & social network        S3MKT460_2015

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Contents

Introduction        2

European market analysis        2

PESTEL analysis of UK        6

SWOT Analysis        7

Strategic Recommendation        8

Segmentation        8

Targeting        9

Positioning        11

Marketing communication        12

Conclusion        17

Reference        19

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Introduction

Haribo is one of the most well-known brands in the confectionery industry especially in Europe market. Founded in 1920 in Bonn, Germany by Hans Riegel, the company has become one of the biggest manufacturer of gummy and jelly sweets in the world, with five factories in Germany and 13 throughout the rest of Europe, and sales offices in almost every country in Europe, as well as in the United States and Australia. Haribo has long focus on marketing to both adults and children. Its German catch phrase is "Haribo macht kinder froh / und Erwachsene ebenso," which translates as "Kids and grown-ups love it so / the happy world of Haribo."

The company came to the UK through the acquisition of a Yorkshire company called Dunhills. After acquiring a stake in that business in 1972, Haribo brand was introduced to the UK. Currently, Haribo is now leader in the U.K. gums and jellies market with sales of 550 tons a week and a turnover of £80 million. In order to keep pace with accelerating sales, Haribo opened new factory in Castleford, UK in 2015, thus, realizing the potential of producing in UK for the UK.

However, despite its large market share in UK, Haribo has felt the impact of the declining demand for sugar confectionery due to the new restrictions on advertising and growing concern over health. In this case study, we will analysis the external and internal environment of Haribo, and then give the relevant recommendations.

In first part, we will analyze the external environment of Haribo involving the position of confectionery sector in Europe market and in UK market. Then, by conducting a SWOT analyze, we will take a closer look at Haribo’s strengths and weakness, thus, providing strategy recommendations which need to be done in order to success on the UK market, the strategy recommendations will be divided into three stage process: segmentation, targeting and positioning. Finally, we will put forward some recommendations on marketing communication.

European market analysis

• The emergence of old-fashioned sweet shops both on the high street and online in European countries. Many sugar companies aim to capitalize on the nostalgia trend among adults for sweets from their childhood, as these offer the potential to provide comfort, reminding adults of the sweets of their youth.

• The growth of sugar confectionery sector in European market is slowing due to the rising dental health concerns. The sugar products face more consumers eating less. Consumers are willing to purchase more organic and nature snacks.

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Table 1：Leading countries for sugar confectionery in Western Europe by value, EUR€m, 2010-2020

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Source: Due to the lack of the latest statistics, we reorganize this chart ourselves by referring to the statistical charts in sugar confectionery of different countries from Euromonitor International

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