5 Gum Fact Book

5 Gum Fact Book Alyssa Orozco and Jose Reyes - May 14, 2015

5 GUM - BRAND REVIEW

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Table of Contents Industry Overview

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Consumer Profile

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Competition

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Orbit

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Trident

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Stride

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5 Gum

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Strategic Planning

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Recommended Next Steps

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Creative Brief

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5 GUM - BRAND REVIEW

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Industry Overview CPG (Consumer Package Good) Sugarless Gum | Chewing Gum

Market Share of Top Sugarless Gum Brands Revenue 2012 Orbit

% Market Share 2013 $187.2 Orbit

Trident

16.7%

$145 Trident

14.8%

$124.1 Wrigley’s Extra

11.5%

Wrigley’s 5

$92.1 Wrigley's Eclipse

6.7%

Wrigley's Ecilpse

$91.6 Wrigley's 5

5.8%

Wrigley’s 5 Gum is the 5th leading brand in the sugarless gum category in 2014 based on revenue.

Stride

$52.8 Stride

Market Share of Top Sugarless/Sugarfree Gum Makers

Trident Layers

$49.6 Dentyne Ice

Wrigley’s

2012

4%

3.9%

2013

Wrigley

54.3% Wrigley

Mondelez

38.4% Mondelez

55.9% 36%

Perfetti Van Mella

4.7% Perfetti Van Mella

4.1%

The Hershey Co.

2.4% The Hershey Co.

3.7%

Other

0.3%

Gale Business Insights: Essentials

Key Players Orbit, Trident, and Extra are the top three leading brands amongst the Chewing Gum and Sugarless Gum category in 2013 and 2014. Orbit and Trident remain the top two brands in the category from 2012-2014. Other gum brands to consider, Wrigley’s Eclipse, Stride, and Dentyne.

5 GUM - BRAND REVIEW

Trident White

3.5%

Ice Breakers Ice

3.4%

Trident Layers

33.1%

Other

26.6%

Gale Business Insights: Essentials

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Distribution: Gum is mainly sold in mass merchandise stores and convenience stores.

Specialty flavors can be founds at specific locations.

Regionally: Throughout the four regions, consumers are pretty similar in buying sugarless gum in the United States. Buying gum throughout the region is average.

Pricing: One pack averages $1-$2. Packs of three averages $3-$5.

Census Region: North East Census Region: South Census Region: Midwest

Seasonality: Gum is sold year-round.

Certain brands may focus on different seasons that is shown in advertising.

99 101 99

Census Region: West

100

Census Divison: Mountain

117

2012 Aug (Spectra)

Trends Political: • Gum that is used for medical purposes.

• Nicotine gum

Social: • Gum contains high fructose corn syurp, aspartame, acesulfame K, and soy lecithin. Sugarer gum isn’t any better and contains same ingredients. Sugarless gum should promote health benefits • The gum and mints market is hard up for innovation, and people just don’t seem to be that excited when companies come up with yet one more name for “mint.”

• People are not excited to buy gum anymore, mint sales are up 20% within the past 5 year.

Economical: • A recent Rabobank report, “A Nation of Suckers,” noted that the $4-billion U.S. gum market fell 10 percent in sales and 20 percent in volume during the past five years.

• Chewing gum sales increases in markets such as Latin

Technology: • Cars have holders specifically to hold packs of gum • New experiments with innovative flavors • Resealable gum bags • Create natural ingredients • “To stimulate sales, chewing gum manufacturers are taking great care in selecting their raw materials and also are innovating in new concepts and in new products.”

America and Asia Pacific while decreases in areas such as Europe and USA,” she says.

candyindustry.com

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Consumer Profile Demographics Below is a comparison between very heavy, heavy, and just above average users based on indexes. The heaviest users come from Married families with four or more people living in the household with kids. The head of household is between 35-54 years old with a total of $100,000 income within the entire house.

Age Head of Household 35 - 44

127

Income $50,000 - $74,999

111

Age Head of Household 45 - 54

123

Income $75,000 - $99,999

125

Married Family with kids

145

3 Person Households

110

Income $100,000 - $149,999

142

Married Family without kids

105

4 Person Households

145

Income $150,000 or More

135

Female Head Only with kids

127

5+ Person Households

152

Male Head Only with kids

106

Census Divison Mountain

Household Composition

117

Psychographics   In the category of Sugarfree Chewing Gum, the heaviest users are older bustling families living in affluent suburban spreads. There are also high users in small scale families living in mid-upscale city and surrounds. 5 gum has the opportunity with families with children because the brand connects well with teens with its positioning and touchpoint.

In the area highlighted in blue, there is an opportunity to target established and empty next couples for the overall gum category.

Since the index numbers are almost at 100 (average) for young transitionals, 5 gum has the opportunity to target that segment because they appeal to the younger audience compared to its competitors.

(Spectra 2012)

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Competition Orbit

Market Share Revenue 2012 Orbit

$187.2 mil

% Market Share 2013 Orbit

Revenue 2014

Distribution: Gum is mainly sold in mass merchandise stores and convenience stores.

16.7% $456.7 mil

Pricing: 0.97 cents individual ~$2-$3 value pack Seasonality: Gum is sold year-round.

Regionally: Consumers index heavier in the Mid Atlantic and the Mountain Region.

Census Divison Mid Atlantic

120

Census Divison Mountain

126

Issues: Taste, flavor does not last as long, and people believe gum is not good for oral health which causes a decline in segments.

Opportunities: More variety in packaging and flavors, more shelf space new emerging markets cities and retail chains, focus on orbit being a healthy low calorie alternative from junk food.

Positioning: Orbit is the gum that provides the benefits of chewing by whitening your teeth and freshening your breath.

“You love to chew sugar-free gum for lots of reasons – it tastes great, it freshens your breath, and, simply put, its fun. And that’s just the beginning. Since the 1930s, Wrigley has been researching the oral health benefits of chewing gum. It is proven that incorporating sugar-free gum into your daily routine can help protect your teeth brush clean feeling.”

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*Consumers index heavy in this segments.

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Trident Market Share: Trident has around 29% market share in the global gum market. Its market share has been relatively stable for Revenue 2012 Sales 2014 % Market Share 2013 the past couple of years so we don’t expect $145 $441.5 14.8% the company to eat up its rivals’ market share significantly. Even if the company is not able to gain market share, there will be sufficient revenue addition for the company as we expect the global gum market to grow at an annual rate of 4.5% for the next few years.

Trident Market Share

Distribution: Gum is mainly sold in mass merchandise stores and convenience stores.

Pricing: 97cents Census Divison Pacific Seasonality: Gum is sold year-round.

Census Divison Mountain Regionally: Consumers index heavier in the mountain and Pacific region.

125 146

Issues: Trident has kept it’s basic and traditional image. Trident’s biggest threat is Orbit, the leading brand in sugarless gum that focuses using gum for health benefits.

Opportunities: Seasonal flavors, the unwrapped gum, gum toothpaste, more partnerships with dentist offices.

Line Extensions: Trident Layers, Trident Vitality Positioning Statement: Trident is the first gum brand to introduce sugarless gum in 1964. Trident is the longer lasting dental health gum that cleans and protects teeth.

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Stride Distribution: Gum is mainly sold in mass merchandise stores and convenience Revenue 2012 Sales 2014 % Market Share 2013 stores.

Pricing: 1.99-$4.99 $52.8 na Stride 4% Seasonality: Gum is sold year-round.

Regionally: Stride gum is sold throughout the US and is pretty average. It is sold heavier in Mid-Upscale Cities and Surrounds and consumers are heavier in the Middle Atlantic region.

Stride Market Share

Stride Issues: They are currently going through a rebranding and partnership with Sour Patch kids that they must focus on since this gives them a different position that only attracts teens and preteens.

Opportunities: Stride is currently trying to compete with 5 Gum by targeting preteens, teens, and young adults. They are experimenting with integrated campaigns that are very digital heavy and create new extensions by partnering with brands that attract young adults. The tone of their online advertising appears to be similar to Dollar Shave Club.

Recent Partnerships: Stride and Sour Patch Kids, Stride and Shawn White.

Line Extensions: Stride ID targets young adults to express their creativity.

Positioning Statement: Stride is the brand for teen millennials because the new mad intense flavors allows you to do what you want.

Spectra (2012) www.candyindustry.com

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Customer Segmentation Artists at Heart This group is based on millennials that know they have a sense of creativity or are willing to explore their creativity. Stride has the flavors for them to experiment with such as Stride ID and Sour Patch Kids. This group ranges from the age of 16-34 and heavier with females.

Innovative Adults This group ranges form 25-45 years old who likes the traditional mint flavor of the gum but are not afraid to tap into crazy flavors that Stride has to offer. They may work in the creative or sales field in an office setting.

MRI 2013

Customer Journey

Touch Points - High to Low Social Media Facebook Twitter YouTube Snapchat Sponsorships - Major League Gaming, The Switch Mobile App Game - Gumulon Partnerships - Sour Patch Kids

100

75

Stride has a great interactive brand presence online. They are easily recognizable which makes it easy in the consumer decision process. However, with their current rebranding and Mad Intense Campaign, this can strength the relationship and brand advocacy in the lone run.

50 Traditional Advertising TV OOH Magazines/Print WOM Online Digital Banner Ads Retail Grocery Stores Gas Stations Convenience Stores Online Purchasing New Packaging

25

0 Discovery

5 GUM - BRAND REVIEW

Consideration

Decision

Relationship

Advocate

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5 Gum Market Share: Revenue 2012 Wrigley’s 5

$92.1 mil

Sales 2014 $123.3 mil

% Market Share 2013 Wrigley's Eclipse

6.7%

Distribution: Gum is mainly sold in mass merchandise stores and convenience stores.

Pricing: Pricing: Individual: $1.29Packs of 3: $2.99 Seasonality: Gum is sold year-round.

Regionally: The most users are concentrated in the West with 19% more likely to buy 5 Gum Census Division

Index

Mountain

119

East North Central

108

South Atlantic

102

Census Region: West

123

5 Gum issues: Declining trends in buying gum and political trends claim that the ingredients are not good to consume.

Opportunities: Partnerships with energy drinks, continuing line extensions and using guerrilla marketing to promote the flavors.

Positioning: 5 gum is the choice for the young explorers because it is the gum that stimulates your senses and it is better than Orbit, Trident, and Stride because the five senses allows you to experience the flavor immediately like facing the five initial seconds of a life changing event.

How to connect with an “Explorer” Teens and young adults are explorers always on a quest to collect new experiences. For them, the only thing better than a new experience is sharing that experience with friends. They connect with each other by telling the story of their experiences so they can gain social capital with their peers.

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Customer Segmentation

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Strategic Planning Strengths: • 5 Gum is Wrigley’s brand that is able to connect to their consumers on an emotional level compared to their other brands.

• They appeal to younger audiences • The brand has experiential marketing in their advertising • Social media and website is very interactive

Opportunities: • They have the opportunity to partner with other brands with similar messaging.

• They can create new flavors • They can create variety packs or mystery flavor

Weaknesses: • Certain flavors of gum are only available at certain locations • Not as cheap compared to the two leading brands • Not many people are aware of their new or variety of flavors

Threats: • Tablet forms of gum means declining sales of stick gum.

• Not a strong presence in the impulse section of stores • Other competitors brand themselves as cleaning teeth, the purpose of chewing gum

Brand Mission: 5 gum is a groundbreaking sugar-free gum that delivers a unique chewing experience. To empower creativity that drives you forward to new places, new occasions to create simple pleasures to brighten everyone’s day.

Perceptual Map

Taste/Variety of Flavors

It is predicted that Trident has an opportunity to reach above the line due to its increase in line extensions. However, it still has the health perception.

Emotional Attachment

It is predicted that Stride will soon be a top competitor of 5 gum because they have increased their lines extensions and they are targeting younger consumers.

Dental/Health Purposes It is predicted that Orbit will continue to have the perception of health benefits and mint flavors even though they are building fruity line extensions.

Perception of one main flavor 5 GUM - BRAND REVIEW

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Recommended Next Steps Short Term Goals: -Increase awareness of the different flavors -Partner with XYIENCE - Create guerrilla marketing to increase awareness of new flavors

Long Term Goals: -Increase market share to compete with Orbit and Trident -Create the new brand extensions

Three Strategies Brand Extentions Coffee flavored Gum

Partnership with Xyience Energy Drink • Performance based energy drink • People who live an active lifestyle • Sugar free and zero calories

This provides an opportunity for 5 gum to provide another experience for their consumers by inhancing the “Adrenaline Junkie’s” adventure. This will benefit XYience because that are not a well known brand and they have the same tone and target as 5Gum.

Experiential Marketing to increase awareness of new flavors

-pop up simulations of 5 gum -sponsor concerts/events and hand out packs of new gum flavors

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Creative Brief Background: 5 Gum is the 5th leading Sugarless Chewing Gum that is manufactured by the Wrigley Company.

Objectives: Increase awareness of the different flavors of 5 Gum.

Target Audience: Males and females 15-28 years old that are in their teens and young adults. They are adventurous, young explorers, that like to try new and exciting things. They have the spirit to try everything that world has to offer and live life to the fullest.

Consumer Insight/Culture Fuel: The explorers buy the different flavors when they see the flavor in the moment at point of purchase. We want every explorer to have the opportunity to experience our flavors so the brand advocates can experience it fully again.

Messaging: 5 Gum is the beginning of the start of you experience in 5 seconds.

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