Chocolate is among the few product categories that we can group under the umbrella “recession proof”.
During the Greek financial crisis, from 2008 till now, very few FMCGs remained without significant sales losses in modern trade. And chocolate is definitely among them, says Konstantinos Kontopoulos, Marketing Manager Mars Hellas.
Marketing management did its homework too, says Konstantinos.
Brought-in innovation in several ways and beyond launching new products, like the multiplication of the points of sale within shops, as well as new places, taking the category to new consumption occasions. Advertising/media support remained consistent and strong, although in under crisis Greece, at least till the end of 2012, most advertising categories reduced significantly their activities. But not chocolate. If you look at the television summary, all brands together, activity on TV covers all the relatively cold months of the year. The 2015 campaigns went as follows:
Trying to go deeper into the role chocolates play for people and especially in difficult times, we turned for expert opinion to Mrs. Mitsi Georgaki, the head of EXPLORER Research, who has investigated the subject in many occasions:
Chocolate is the ‘Taste of Joy’ the natural ‘Pump-Dose of Joy’ and therefore at times of economic crisis, or as in WW2, its importance is even bigger.
Chocolate has great taste that offers pleasure and enjoyment. Its effects on physiology have been and still are subjects of many Researches. One main finding is that chocolate contains substances with psychostimulant properties, affecting functions of the brain associated with mood and behavior. When eating chocolate, endorphins are released, which are natural opioids that have analgesic properties and improve mood.
Moreover, chocolate consumption is associated with childhood and its tenderness, carefreeness, love, hug, joy, even reward.
Throughout our lives we ‘learn’ to connect chocolate with positive feelings or situations. Our family, our friends, our environment and also media and advertisements, which communicate to us in various ways that chocolate is associated with intense pleasure, with love, with romance, with acceptance, with tenderness, with happiness, with a great –plethoric positive experience/ Most recent testimony on Greek TV, the series Mr. SELFRIDGE on ERT 2.
Thus, in a period of economic crisis that people have fewer ‘sources of joy’, they turn on small joys, on everyday pleasures and chocolate constitutes an obvious and easy option for immediate and natural ‘Dose of Joy’
The Mathematical approach: If you go back to Milton’s Magazine No 2 on our blog www.mediarisk.gr , on pages 6-8 you will see how Factor Analysis works.
In the case of Chocolate, we discovered a factor that we have not seen before having positive correlation with any other consumption element: Unemployment!!!
This is a fact that could raise also ethical issues. “Are we taking advantage of difficulties people are in?”
No we are not. We just say that mathematics/ Factor Analysis can unearth the “drivers of sales”, whichever these drivers are. And we can also work vice versa. Understanding the importance of chocolate in easing peoples’ pain, we can spell the word and encourage the distribution of chocolate to those in need.
So yes, at this moment of time and at this market, unemployment is mathematically positively correlated with increased chocolate consumption! The same way probably that WWII was connected again with chocolate consumption, as seen in literature and in numerous war films.
This is an opportunity to say that with the backing of the largest international center that deals with mathematical modeling, MEDIARISK offers marketers and top management, a sound analysis of “sources of business”. How much is current advertising contributing to your sales? How much is Promo? How much price cuts? Etc. So management can take educated decisions on what to expect, when deciding on how to split resources and if for example a 15% price cut has almost the same effects with a 35% cut or not.
A characteristic table:
A few things we learned here about “Key Business Drivers”:
a. Importance of the underlying Trends: Timing was favorable for marketing investment in chocolate. b. Adjustment of tone & language was a must in order to capitalize on trends c. Promo delivered nicely, but needed to be hand in hand with the media effort.
Then we also learned a few more things that allow the separation of direct influencers to the business from indirect.
Coming to marketing appropriations, all the analysis represented on the table, didn’t surpass 4 digits in cost and is able to generate the multiple in additional sales, as we have seen times and again.
To learn more on how to apply the analysis on your own business, contact Milton Papadakis at milton.pap@gmail.com or at (+30) 210 6101240, to check what are the drivers TODAY in YOUR Business.