Cadbury set out two objectives for the development of Fuse:
- To grow the market for chocolate confectionery
- To increase Cadbury's share of the snacking sector
The 'Fuse' concept was developed after market research identified the growth of snacking and a definite gap in the market for a more chocolatey snack. A number of ingredients were devised and tested following a survey which questioned consumers about their snacking habits and preferences. A research and development team was then asked to develop a number of product recipes which addressed the needs expressed by consumers.
Not all products successfully emerge from the product development phase. Research and development involves combining various ingredients to develop potential new products. Considerable development time was spent on Fuse, carefully engineering the ingredients in order to deliver the right balance of chocolate, food elements and texture. More than 250 ingredients were tried and tested in various combinations before the recipe was finalised.
Any new product in the snacking sector must establish points of difference from existing products within the market - thus creating a unique selling proposition (USP) i.e. a product with unique appeal which is not shared by any of its competitors. Whereas other confectionery snacking products focus primarily upon ingredients, with chocolate used only to coat the bar, the product developers decided to use Cadbury chocolate to ''fuse'' together a number of popular snacking ingredients such as raisins, peanuts, crisp cereal and fudge pieces.
Early consumer testing
As products are developed, they must be tested to ensure that consumers would be willing to buy them. As approximately 85% of all new products launched into the grocery and allied trade sectors fail in their first year, extensive research helps to reduce the risk of launching a new product into an already competitive market. Fuse went through two extensive 'in home placement' tests. The results of these tests were multiplied into repeat purchase and purchase frequency figures to allow Cadbury to anticipate the volume of bars required for the launch of Fuse and post-launch.
Pack design
Packaging enables a manufacturer to convey both the tangible and intangible attributes of a product. The packaging for Cadbury's new product sought to position it as a unique, exciting and delicious chocolate snack which would stand out from its competitors. It was important to emphasise the qualities and appeal of Fuse whilst at the same time reinforcing that it was a Cadbury brand.
The packaging achieved impact by using bright, fiery colours for the product name and contrasting them against the deep and instantly recognisable 'Cadbury purple', which communicated the manufacturer's heritage. The colours were also used in a gun powder style to suggest an explosive taste. The vibrancy of the design aimed to differentiate it from other products in the sector so that it would have an immediate point-of-sale impact both on-shelf and in store display units.
Three different packaging formats were developed in order to maximise the various multi-purchase opportunities available. The key pack size was the single bar, designed to entice trial and to encourage repeat purchase. The 'treat size' and the multi-packs were aimed at families.
Brand name
Like packaging, brand names play a critical role in the success of a product, by helping to create a product's 'personality'. The new product aimed to have broad appeal to 16-34 year olds, although it was primarily targeted at 16-24 year olds. The name Fuse was chosen to communicate the fusion of snacking ingredients. The logo was bright and fiery with a mock fuse - alight in several places - which aimed to give the new bar the quirky and humorous style which Cadbury sought to appeal to this younger target market.
Further consumer testing
Testing is vital throughout the entire product development process. It helps to provide valuable information that can be used to fine-tune the product and minimise many of the launch risks.
In research, Fuse scored higher for texture, 'interesting eat' and combination of ingredients, than its competitors and achieved the highest rating ever for a new Cadbury product - 82% of consumers rated Fuse as excellent or very good and 83% said they would buy it regularly.