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Situation AnalysisTeam Taste the Touchdown

John Becker

Nikki Caldwell

Taylor Marie Esler

Breanne McCallop

Anthony Orso

James West

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Table of Contents OverviewIndustry AnalysisCompany AnalysisCompetitor AnalysisPerceptual MapConsumer AnalysisSWOTFindingsRecommendations

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OverviewThis book contains information about Skittles’ current position in the candy industry, as well as among other NFL sponsors. Our objective is to provide guidance to Skittles in its sponsorship of the NFL. This book will provide comprehensive secondary research about competitors, targeted consumers and the product’s past promotional efforts to help guide further research.

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Industry AnalysisSkittles candy falls within the confectionery industry. With the NFL sponsorship, the brand hopes to find a place in home-viewing occasions, which is dominated by snack foods. This industry analysis will first look at the place Skittles has in the confectionery industry and then at trends in the snacking industry.

Confectionery Industry OverviewThe U.S. confectionery industry is a healthy market. In 2014, the U.S. confectionery industry accounted for $33.6 billion in sales. Chocolate sales were $20.6 billion, non-chocolate sales were $10.3 billion and gum sales were $2.7 billion.The industry is projected to see a $6 billion increase in sales over the next five years.

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Within the confectionery industry, Skittles is part of the non-chocolate category, specifically the chewy candy segment. This analysis will focus on the chewy non-chocolate candy segment.

Basics of the Chewy SegmentThe chewy segment is the largest part of the non-chocolate category. The chewy segment reached sales of $2.9 billion in 2014. These sales were boosted by leading companies, including Mars, Mondelez and Hershey’s. New products from these companies, like Starburst Minis and Jolly Rancher Bites, increased segment growth.The chewy segment is also growing because of an increasing interest in gummy candy. Haribo gummy candy, as well as new products from existing brands outside of the chewy segment, such as Jolly Rancher, increased sales in the segment.

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The category continues to grow as consumers view candy as an affordable way to indulge. Chocolate candy prices have increased recently because of a rise in cocoa bean import prices. Non-chocolate candy can provide an inexpensive alternative to consumers discouraged by the price of chocolate.

It is important to be aware of the indulgent nature of the non-chocolate confectionery industry in marketing efforts. These efforts emphasize the affordability of its products, compared to more expensive and premium chocolate items.

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Market DriversNew product innovation in the chewy candy segment has led to growth. Traditional chewy candy brands like Skittles and Starbursts released new resealable packaging. Skittles annually introduces a new flavor and Starbursts released new unwrapped mini version of its candy, adding to the segment’s product array. Many non-chewy candy brands, such as Warheads, Hawaiian Punch, Lifesavers, Wonka Nerds and Sweetarts, have helped drive growth in the chewy segment with their own new chewy product offerings.

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The biggest market drivers are seasonal offerings. The category continues to see sales fluctuate seasonally, especially as consumers appear more willing to indulge during the holiday seasons. Confectionery sales increased during holiday seasons from 2013 to 2014.

Seasonal marketing drives sales for all types of candy in the category. The industry will need to focus more on non-traditional candy seasons, such as summer, to continue to grow.

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Summer is traditionally a slower season for category sales, but it could be a good time for confectioners to focus on healthy options within the non-chocolate confection category. Fruit-flavored and fruit-enhanced products may be promoted during this time, as can natural and reduced-sugar varieties.

With its NFL sponsorship, Skittles is in a unique position to take advantage of the slower sales season. NFL training camps begin as early as July 26th, and team news begins even earlier.

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Snacking TrendsTrends in healthy snacking also represent a challenge to the non-chocolate confectionery category. Obesity and a growing interest in health and wellness are threats to the category. The National Confectioners Association pointed to healthy snacks as a reason for flat candy sales during Halloween 2012, as some consumers opted for healthier alternatives to candy. Snack foods with strong nutritional profiles compete directly with non-chocolate candy.

97% of consumers claim to have eaten fruits and vegetables as a snack.

43% of consumers who eat non-chocolate confections believe candy is bad for their overall health.

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The category currently positions itself as an indulgence, but it is important to develop low or non-sugar options that reduce consumer guilt. Mars Inc. has already announced plans to remove all artificial colors from its food products as part of a commitment to meet evolving consumer preferences.

The category is in a position to drive opinions about health and suggest responsible consumption, rather than suffer from a lack of sales because of health concerns. Non-chocolate confections have an advantage over chocolate confections because of fruit flavoring, which portrays the candy as healthier. As interests in snacking and eating healthy continue to overlap, snack foods that do not supplement consumers’ diets could struggle to compete.

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Competing Snack SegmentsHome-viewing occasions often involved many types of snacks beyond candy. It is important that Skittles also look at the salty and sweet snack industry, which play a similar role in consumers’ diets as non-chocolate confections by offering between-meal indulgences.

44% of non-chocolate candy eaters report eating non-chocolate candy to satisfy a craving.

58% of salty snack consumers report purchasing salty snacks for the same reason.

Concerns over sugar are significant:

26% of non-chocolate candy buyers identify low sugar as an important factor in their purchases.

24% of non-chocolate candy buyers identify products made with real fruit juice as an important factor in their purchase.

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Additionally, certain salty snacks, especially nuts, benefit from the perception that nuts curb hunger. However, both salty snacks and non-chocolate candy suffer from general consumer perceptions that they are unhealthy. Now that potato chip manufacturers have begun to launch natural, high-fiber and vegetable-based varieties, it will be important for non-chocolate candy manufacturers to address consumer concerns about the nutritional content of its products.

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Company

Wrigley Jr. Company owns the Skittles brand. Mars Inc. bought Wrigley in 2008. Wrigley is recognized as a leader in confections, with numerous global brands and a wide range of products, including gum, mints, hard and chewy candies.

Mission Statement“To create simple pleasures to brighten everyone’s day.”

Company Vision“Wrigley is a company without boundaries; because that’s how we see the world.”

Purpose“Wrigley strives to find new ways for the world to enjoy Wrigley and continue to provide products

that make people happy.”

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Mars’ Five PrinciplesQuality The consumer is our boss, quality is our work and value for money is our goal.

Responsibility All associates are asked to take direct responsibility for results, to exercise initiative and judgment, and to make decisions as required. By recruiting ethical people well suited to do their jobs and trusting them, Mars can expect associates to be accountable for their own high standards.

Mutuality Mars Inc. believes the standard by which its business relationships should be measured is the degree to which mutual benefits are created. The actions of Mars Inc. should never be at the expense, economic or otherwise, of others with whom it works.

Efficiency Mars Inc.’s strength lies in its efficiency, which is its ability to organize all its assets – physical, financial and human – for maximum productivity.

Freedom Family ownership means freedom from shareholders and board decisions. The company’s freedom is maintained by profit.

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Core Values

Make A Difference For People

Seek New Opportunities

Produce High Quality Goods

Make A Difference For The Planet

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FinancialsMars Inc. is the seventh largest privately owned company, earning $33 billion in global revenue in 2012. Wm. Wrigley Jr. Company merged with Mars Inc. in 2008, in a transaction valued at more than $23 billion. More than 2 billion Skittles candies are produced on a daily basis. While exact sales numbers are unknown, Skittles’ sales performance inspires continued product innovation and marketing efforts.

Product InformationSkittles candy was first created in the U.K. in 1979 by an unknown confectioner. Since then, Wrigley purchased the brand and now sells Skittles globally in a variety of flavors and package sizes. In the U.S., there are six flavor varieties currently sold.

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Original Skittles were introduced in 1979. Skittles candies roll out across the U.S. in the original flavor combination of orange, lemon, lime, grape and strawberry in a rainbow. Skittles were imported at first, but the candies have been manufactured in the U.S. since 1982. The lime flavor was replaced with green apple in 2013.

Wildberry Skittles were introduced in 1989. Wildberry Skittles includes raspberry, melon berry, berry punch, wild cherry and strawberry flavored Skittles.

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Tropical Skittles were introduced in 1989. Topical Skittles includes banana, kiwi, mango, strawberry and passion fruit flavored candies.

Sour Skittles were introduced in 2000. Sour Skittles includes sour grape, sour green apple, sour lemon, sour lime and sour cherry flavored candies.

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Desserts were introduced in 2014. Skittles Desserts includes raspberry sorbet, key lime pie, blueberry tart, orange creme and strawberry milkshake flavored candies.

Orchards were introduced in 2015. Skittles Orchards includes a mix of fruit flavors that you could find in an Orchard, including the beloved lime.

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Skittles Packaging

Singles bags $1.10

Peg $1.98

Share Size $1.39

Laydown Bag $2.60

Box $0.98

Stand-up Bag $5.98

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Nutritional Information

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Past EndeavorsUnder Mars’ ownership, Skittles has introduced a new limited-time flavor variety each year. None of these new variations have gained permanent shelf space. However, we can assume that these variations positively affected sales because of Skittles’ continual commitment to releasing new flavors.

Orchards2015

Blenders2011

Riddles2012

Darkside2013

Crazy Cores2009

Desserts2014

Fizzl’d Fruits2010

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Current and Past Promotional EffortsSkittles is currently positioned as a fun, quirky brand. “Taste the Rainbow” has been a part of Skittles brand identity for more than a decade, but the quirky take on the slogan is more recent. In 2004, the “Experience the Rainbow” campaign relaunched as a more kooky campaign. The “Experience the Rainbow” campaign uses the slogan “_______ the rainbow, taste the rainbow,” accompanied by various unpredictable spots. In the campaign, there have been some mentions of the NFL, but there has yet to be a true dedication to affiliating Skittles with the league. Packaging has not featured official sponsorship logos, nor has Skittles mentioned its NFL sponsorship in TV spots. Skittles’ website has the most NFL-related content.

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At one point, Skittles created five different personas for each Skittles flavor. One of the personas was a super fan of the NFL named Eunice. Consumers were encouraged to challenge Euince in Madden ‘16 over Xbox Live.

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This year, Skittles has produced two nationally-viewed TV spots. “Contract the rainbow” shows a boy with “Skittles pox” interacting with a girl who can’t resist Skittles. The girl takes a Skittle without asking if the “Skittles pox” is contagious. “Rock the rainbow” aired during Super Bowl 50 and featured Steven Tyler and Skittles art. The ad was seen by approximately 111.9 million viewers. Skittles art is a craft that ad agency DDB found consumers were posting about on social media.

The Skittles art was also featured in a Snapchat ad, which allowed users to share a video of Skittles covering their face like an emoji.

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Skittles quirky position has helped it stand out among competitors and has generated buzz. “Rock the Rainbow” and “Contract the Rainbow” started a conversation on social media platforms like Twitter. However, the buzz was not overwhelmingly positive.

This does not necessarily mean consumers think negatively of Skittles, but they seem to agree that its advertising is worth talking about.

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Leading up to the Super Bowl, Skittles had NFL players Luke Kuechly and DeMarcus Ware go to local news stations as weathermen to promote a Skittles’ sweepstakes. The players predicted the gameday forecast and encouraged fans to “Root for the Rainbow.” A press release explained, “Skittles wants to give every football fan something to root for on Sunday so they’re offering the chance to “Root for The Rainbow” during the game. And, if a rainbow appears in San Francisco during the Super Bowl fans get a free pack of Skittles.” Consumers needed to follow Skittles on Twitter and to post a tweet including #SkittlesRainbow and #Contest before kickoff.

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POS PromotionPromotional displays we found leading up to the Superbowl did not prominently display Skittles. Other competing official sponsors had eye-catching displays at the front of the store. We did not find Skittles around these NFL displays or with sponsorship logos. In the candy aisle, Skittles were again not well displayed. In Valentine’s Day displays, Skittles were present but did not stand out among other candies. Large packs of Skittles were not prominently displayed in the store. Individual bags sold near the check-out also did not featured promotions.

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Brand AdvocatesMarshawn Lynch, former NFL running back for the Seattle Seahawks, is the most prominent brand advocate for Skittles. According to his mother, Delisa Lynch, Marshawn’s love for Skittles started at an early age.

“When Marshawn was 12 or 13, we’d go to his games, and I’d always have little candies in my purse,” Lynch’s mom said. “Before the game, I would say, ‘Here Marshawn, come and get your power pellets. I would give him a handful of Skittles and say, ‘Eat ’em up, baby. They’re going to make you run fast, and they’re going to make you play good.’”

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Lynch continued eating Skittles during games while playing at Cal Berkeley, and ultimately as a Seattle Seahawk. His obsession with Skittles sparked national attention in 2012 when he was seen eating Skittles on the sidelines. Recognizing his love for Skittles, fans showering Lynch with Skittles after a touchdown.

In 2014, Skittles made Lynch an official Skittles sponsor. When the Seahawks went to the Super Bowl, Skittles auctioned off a limited edition Seattle mix of Skittles to celebrate the Seahawks trip to the Superbowl. The proceeds went to the Fam 1st Family Foundation, a charity co-founded by Lynch. While these Skittles were not commercial sold, the packs show how Skittles could customize flavors and packaging for NFL fans.

Lynch retired at the beginning of 2016, a potential setback for Skittles. The company appears to be looking for new football players to promote the brand, such as Randall Cobb, DeMarcus Ware and Luke Kuechly.

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Sponsorship InformationSkittles became an official sponsor of the NFL in 2014, primarly because of Lynch. The National Football League Inc. owns and operates the most dominant football league in the United States and abroad. The company offers news, videos, teams, players, scores, schedules, stats and standings, as well as online services, such as game rewind, field pass, game pass and tools and widgets. It provides its services through online, radio, mobile and TV. It has operations in Canada, China, France, Japan, Mexico and the United Kingdom.

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Mission“To provide our fans, communities and partners the highest quality sports and entertainment in the world, and to do so in a way that is consistent with our values.”

Purpose“Every member of the NFL community embraces our unique leadership role in society, and assumes the trust, character, and responsibility that comes with that role.”

The NFL bring fans and communities from all walks of life together to celebrate a game that is constantly evolving, balancing the authenticity of tradition with the power of innovation.

FinancialsThe NFL made $13 billion in revenue in 2015. It generates revenue mostly through marketing sponsorships, licensing merchandise and by selling national broadcasting rights to the games. Sponsorship revenue grew about 8 percent to $1.15 billion in 2015. Commissioner Roger Goodell said in 2010 that he wants to triple the league’s revenue to $25 billion by 2027, a major possibility as the NFL invests more overseas.

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ValuesRespect Everyone matters. Everyone contributes.

Integrity The NFL always looks to make the right call. It demands accountability and expects fair play. The NFL says what it means, means what it says, and always follows through. It accepts responsibility when it get things wrong, and then works to make them right.

Responsibility As a team, The NFL supports one another. The NFL depends on one another. The NFL embraces its interdependence. The NFL humbly strives to make its teams, its players, its fans and its communities proud and better.

Resiliency Anything is possible. No matter how great the obstacles, the NFL overcomes adversity. The NFL turns losses into lessons. The NFL adapts to changing circumstances and leads in new contexts. The NFL embraces the greatest challenges and rises to meet them.

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Key TakeawaysMars Inc. is a strong company with many assets that can help Skittles become a top-of-mind, home-viewing occasion product.

Mars has the freedom as a private company to innovate and has been known to introduce new product variations. Skittles has a fun reputation and its current brand position sets them apart from the crowd.

The official sponsorship of the NFL is a great opportunity for Skittles. The NFL interacts with its consumers on multiple touch-points throughout the week, leading up to weekly home-viewing occasions where Skittles can interact with consumers. Skittles also has the historical association with Marshawn Lynch and his “power pellets” to build on.

By not committing to marketing with the NFL, Skittles is missing opportunities on POP displays, package design and the ability to format its existing campaign around the home-viewing experience.

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CompetitionOverview

There are two forms of competitors for Skittles: products in the non-chocolate chewy segment and products in the home-viewing occasion food category.

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Direct CompetitorsAccording to a Statista report, private labels (store brands and specialty brands) are leading the chewy candy segment in the United States, with $202.6 million. Skittles follows with $172.1 million. Falling right below Skittles, Starburst made $155 million and Sour Patch Kids made $94.2 million in sales. Because private labels are hard to pinpoint as competitors, this analysis will look at Starburst and Sour Patch Kids as competitiors, as well as Twizzlers, which Wrigley defined as a top competitor, and M&M’s, which is competition in the home-viewing occasion.

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Starburst is Skittles’ biggest competitor even though they are under the same parent company, Mars Inc. The company’s sales are estimated at about $18.5 billion. Its similarly fun approach to marketing and categorization within the non-chocolate chewy confectionary segment makes it a close competitor of Skittles. Starburst also has fewer calories and grams of sugar than Skittles, which appeals to the health-conscious consumer.

Starburst comes in Original, FaveReds, Tropical, Fruity Slushies and Superfruit. Like Skittles, Starburst are sold in small packages as well as a 41-ounce bag for sharing.

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Sour Patch Kids is a “sour then sweet” confectionery and a part of the non-chocolate chewy segment. Mondelez International Inc. owns Sour Patch Kids, which is behind Mars Inc. in sales.Mondelez International Inc. is currently markets to teen and young adults. In its ad campaign, the candies are animated and shown doing something bad, or “sour,” such as cut a child’s hair off, and then doing something “sweet,” such as giving that child a hug.

Sour Patch Kids is also sold in larger 1.9-pound bags for people to share or save for later.

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M&M’s is also produced by Mars Inc. The product has some traits similar to Skittles, such as its shape, size and variety of colors. Unlike Skittles, all the M&M’s in a pack taste the same, making them easier to customize by color becuase the color does not signify flavor. Although M&M’s are not a part of the non-chocolate chewy segment, the candy is still a large competitor within the NFL-viewing audience. M&M’s are commonly paired with salty snacks that sports fans crave. Chocolate sales topped the confectionery market in 2013.

M&M’s advertising features each colored M&M as a different persona. M&M’s are sold in individual packaging and larger packaging for sharing.

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Twizzlers is owned by the Hershey company, the third largest U.S. candy company. The company’s sales are estimated at about $7.4 billion. Twizzlers introduced Twizzlers Bites in 2014, imitating Starburst’s and Skittles’ bite-size quality.

Twizzlers Bites are available in Mixed Berry, Filled Fruity, Cherry and Black Licorice. Twizzlers are sold in 16 ounce bags, as well as in bulk of 105 individually-wrapped twizzlers for sharing.

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SkittlesManufacturer: Mars Inc.Number of Variations: 6Sugar: 46gCalories: 250 per servingTagline: Taste the Rainbow

M&MsManufacturer: Mars Inc.Number of Versions: 9Sugar: 30 gCalories: 240 per servingTagline: Melts in your mouth, not in your hand

TwizzlersManufacturer: The Hershey CompanyNumber of Versions: 4Sugar: 19gCalories: 140 per serving Tagline: The twist you can’t resist

StarburstsManufacturer: Mars Inc.Number of Versions: 5 Sugar: 22gCalories: 130 per servingTagline:Unexplainably Juicy

Sour Patch KidsManufacturer: Mondelez International Inc. Number of Versions: 9Sugar: 64gCalories: 150 per servingTagline: Sour, Sweet, Gone

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NFL Sponsorship Competitors Skittles also competes with other sponsors of the NFL for shelf space. NFL sponsors’ marketing campaigns can include NFL-related words and images that non-sponsors cannot include. Sponsored products are appealing to retailers who want to promote sales around the NFL season, especially the Super Bowl. Sponsorship can effect the product’s shelf placement and display in store.

Since NFL sponsorship impacts the attractiveness of a brand, snack foods and drinks that sponsor the NFL compete for premium shelf space in stores. Sponsors that fall under that category include Frito-Lays, Pepsi and Snickers.

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Frito–Lay is Skittles’ biggest competitor in home-viewing occasions. Most sports fans prefer salty snacks when viewing sports. Frito–Lay sells a variety of chips, dips, nuts, popcorn and other salted snacks. Frito–Lay and Pepsi merged into PepsiCo in 1965. It owns Doritos and Tostitos, Skittles’ two biggest competitors in terms of game-day food.

Both Doritos and Tostitos use NFL sponsorships to influence packaging and point-of-purchase displays. Both brands dominated NFL retail snacking displays, while Skittles was found in Valentine’s Day displays.

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Doritos leads the tortilla chip market with 32.2 percent market share. PepsiCo overall has 73.5 percent of chip sales. Doritos offers a wide variety of chips, similar to the many varieties Skittles offers. Doritos also targets Millennials with absurd and humorous content. The brand ispositioned to target millennial men who enjoy bold flavors. Doritos’ association with the NFL is strengthened by consumer-created advertisements it runs during the Super Bowl. For the last 10 years, Doritos has let consumers pitch commercial ideas for the Super Bowl, and Doritos airs three finalists commercials. Viewers then vote on the one they liked best. This encourages consumers to look for the commercials and to talk about them with others. The contest generated 238,770 twitter mentions during the Super Bowl.

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Tostitos is a party-focused food that has 18.8 percent of the tortilla chip market share. Fifty-four percent of consumers buy salty snacks when entertaining guests. The product is strongly associated with social gatherings. Tostitos is branded as a dipping chip that is easy to share, which promotes consumers to buy its dips as well. The brand has introduced recipes, branded party tips and created sweepstakes that appeal to the hosts of social gatherings. Tostitos is seen as a leading innovator in advertising, as it strays away from traditional TV spots. Instead, it focuses on social media platforms like Twitter and Pinterest. It has created conversations on social media about the brand by doing promotions like Tostitos “Party Like a Pro.”

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PepsiCo targets the same Millennial demographic as Skittles. PepsiCo appeals to a younger generation by using current popular athletes, artists and celebrities. Pepsi constantly updates its packaging to align with the release of upcoming media or events. Pepsi also sponsored the Super Bowl halftime show.

PepsiCo is not as big of a threat to Skittles because it offers a different value to consumers. It is considered competition because PepsiCo uses its sponsorship better. It takes valuable retail space and attention away from Skittles, while strengthening its association with the NFL home-viewing occasions.

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Snickers is also owned by Mars Inc. It has become synonymous with the NFL through the team packaging it offers. The campaign “You Aren’t You When You’re Hungry” started during the Super Bowl and featured a backyard football game, something NFL fans can easily relate to.

Snickers’ competitive advantage is the protein in peanuts that make it a filling snack. Although Snickers is associated with the NFL, it is meant for individual consumption. The nature of the product make it less likely to be a part of the home-viewing occasion. There are Snickers minis that are individually wrapped. However, Mars has not taken steps to show how Snickers minis could play a role in the home-viewing occasion.

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Perceptual MapThis perceptual map looks at the competitive landscape by comparing brands’ affiliation with the NFL and their sharing capabilities. Skittles is currently not as associated with the NFL as other brands that pay for the same premium for NFL sponsorship. It is also not considered a party food that you would set out and share. We believe the brand should aim to be more associated with the NFL rather than focusing on becoming a party food. We believe this is a realistic goal and that strategic marketing efforts can change consumers’ perception of Skittles’ affiliation with the NFL.

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Consumer

Skittles targets Millennials. This analysis will look at the food consumption trends Millennials are following as well as the way they shop for and partake in home-viewing occasions. Most importantly, it will look at when and how Millennials interact with the NFL and indulge in candy.

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Health Conscious ConsumersMore so than ever, consumers are becoming conscious of the nutritional value of the food they purchase. Consumers are now going to sugar-free, reduced-sugar or sugar-replacement foods, notably in the confectionery category.

“Over 90 percent of consumers who purchase sugar-free candy do so as part of a conscious drive towards a healthier lifestyle. Sugar-free candy is no longer niche, with one in five consumers purchasing

sugar-free candy in the last 12 months.”

-Alex Levine, Brand Communications manager at Russell Stover.

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Healthier snack food is more available in packaging, such as hummus and guacamole, making it more challenging to motivate consumers to buy large bags of candy. People may bring these foods to gameday parties instead of candy.

Millennials are one of the most health-conscious generations. Kids under the age of six consume the least amount of sugar, showing that Millennial parents are nutrition-conscious and attentive to food labels, particularly sugar content and calories. At the same time, Millennial households are more likely to have candy in their homes if they have children. Although young parents are more attentive to nutrition than others, candy is still considered a normal treat for parents and children.

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TargetingSkittles should target Millennials because they are the most likely to view the top five non-chocolate confectionery brands positively. In fact, 18- to 24-year-olds are 5-20 percent more likely view the top five brands positively than the average consumer. Their favorite brand is Starburst, but they also like Skittles and Jolly Ranchers significantly above average.

This target audience will be most open to promotions. Millennials love customized packaging because it caters to their strong sense of individuality. All age groups prefer chocolate candy over non-chocolate candy, but Millennials perfer chocolate by the smallest margin.

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Despite being health-conscious, Millennials are impulsive and seek rewards for hard work and stress. Millennials say the two main reasons they eat candy are to satisfy a craving and to treat themselves. NFL viewing parties can be opportunities for Millennial consumers to indulge. Also, Millennials outspend every generation in purchases for the Super Bowl, with an average of $170, compared to an overall average of $82.

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NFL FansFootball is America’s favorite sport. Three out of four Americans at least occasionally watch professional football. Sports fans are much more likely to watch games at home or at a friend’s house.

Most Super Bowl purchases are low-involvement foods, such as beer and chips. Skittles can also be considered a low-involvement purchase. In shopping, men are more price-conscious and women are more convenience-conscious. This is an opportunity for marketers to step in. Ninety-three percent of candy purchases from 18- to 24-year-olds occur at checkout, so placing engaging promotions near this area could be highly effective.

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Football Viewers’ Shopping HabitsSports fans often eat indulgent foods, such as salty snacks, meat appetizers and carryout foods. The foods that consumers flock toward are pizza, wings, beer, soda and salty snacks. 1.3 billion chicken wings are consumed on Super Bowl Sunday. Although sports fans prefer salty over sweet food, variety-seeking eating habits can still trigger candy sales.

“It’s a survival mechanism, if our ancestors didn’t opt for variety in their eating, then there would have been times during the year you wouldn’t get interested in eating because of what plants were

growing or what animals were around.”-Susan M. Kleiner, R.D., Ph.D., Consultant for USANA Health Sciences

This variety-seeking behavior leads consumers to desire sweet foods after salty food. Consumers may have filled up their “salty stomachs,” but if they haven’t filled their “sweet stomachs,” they may still feel hungry.

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Men aged 35+ are the most likely to engage in professional sports, whereas Millennials are the least engaged sports fans. However, Millennials make up the majority of the Super Fan category, which accounts for 19 percent of sports fans. Although Millennials may not represent a large amount of sports fans overall, those who are sports fans are dedicated, highly engaged and passionate.

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Fifty-six percent of sports fans are male, and 44 percent are female. It is crucial to target both genders. Although 18 to 34-year old women are the least likely to be sports fans, they are actually more engaged in sports activities and/or products than their male counterparts. Skittles should not neglect women in its marketing and promotional efforts.

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The Purchase CycleThe purchase cycle of the non-chocolate confectionery category is 49 days and has an annual average of 8.7 purchase occasions. Skittles falls within the non-chocolate chewy candy segment, which has a longer purchase cycle of 68 days. On average, there are 4.4 purchase occasions within the category. Skittles’ volume per purchase occasion is 0.8 pounds.

High buying occasions are around holidays. During Easter, Skittles has the longest purchase cycle compared to the other chewy confections.

Non-chocolate confectionary chewy

purchase cycle

Non-chocolate confectionary

purchase cycle

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Purchase Motivations and PredictorsConsumers spend more on sweets if they have a higher income. When consumers have more money, they are more likely to indulge and buy sweets.

Forty-forty percent of those who eat non-chocolate confections buy them in order to satisfy a craving, and 39 percent buy it to treat themselves. Also, many consumers eat non-chocolate confections as a way to reward themselves, which shows the indulgence aspect of the category.

Consumers are buying candy as a means to satisfy cravings and treat themselves. As a means of functional consumption, 38 percent eat non-chocolate confections to remove a bad taste in their mouths, and 27 percent eat it for snacking between meals. Within these functional consumption drivers, men are more likely to use non-chocolate confections for snacking, whereas women are more likely to eat these products to remove a bad taste in their mouths. Women may have a slightly different purpose for eating confections.

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Millennials are more likely to eat these products for a special occasion or celebration, as well as buying them to give as gifts to other people. They like to reward themselves and celebrate with candy.

Packaging also plays a role in the buying decision. Products that are specially packaged are likely to appeal to younger consumers. Also, larger packages appeal to millennials becuase the can be brought to social gatherings.

Millennials are 30% more likely to eat non-chocolate candy as a means to reward themselves.

Although candy is mostly a daily purchase, its popularity during special occasions and holidays shows that it can play a role in special events, including sports games. Ninety percent of American households have bought candy in the past 12 months, with purchases peaking during Halloween, Easter and Christmas. Ultimately, candy is largely an impulse purchase, so the health-conscious consumer may buy it when he or she impusively grabs something at the grocery store.

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The Consumer’s Relationship With The ProductCandy is considered an everyday product for U.S. consumers. This implies that consumers have little involvement in the purchase. While there are concerns about the nutritional content, consumers ultimately still want to indulge. The category continues to grow due to new product innovation that cater to consumption occasions and keep the category fresh and exciting.

In addition to these successes, there is opportunity to grow in-store retailing and seasonal offerings. Negative perceptions of the candy’s nutritional value doesn’t impact the consumer purchase behavior. Candy buying is more of an emotional decision. Consumers like the fresh and exciting aspect of candy, so they don’t get tired of it if there are new options and innovations.

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Younger generations are 23 percent more likely to eat non-chocolate confections because they are bored and 25 percent more likely to eat it to alleviate stress. Candy that involves any type of game may appeal to the younger consumers, because they are more likely to view non-chocolate confections as fun products.

Purchases are motivated by negative and positive emotions. Negative emotions can be stress and boredom. Some positive emotions associated with the purchase are fun and excitement.

Stress Boredom Fun Excitement

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SWOT Analysis

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Strengths

• Skittles has brand recognition and a fun reputation• Mars Inc. has a reputation for its innovative tactics and has the freedom to

experiment as a private company• Skittles is a low-price, low-involvement purchase• Skittles is an official NFL sponsor

Weaknesses

• The product is inherently high in sugar and lacks nutritional value• The product is not currently considered a party food• Current marketing efforts are not designed to associate the product with NFL

home-viewing occasions

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Opportunities

• The candy non-chocolate chewy segment is growing because of the rising cost of chocolate

• Consumers crave something sweet after they eat something salty• Product customization boosts consumer purchases• Millennials are willing to indulge and celebrate with candy• Millennials are super fans of the NFL• Candy purchases are often made for an occasion, and game days are occasions• There is no other top-of-mind “candy non-chocolate” brand associated with the

NFL

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Threats

• Consumers prefer salty over sweet treats at parties• There are other official NFL sponsors with strong associations to the home-viewing

occasion• Starburst and Twizzlers have products with similar attributes • Consumers want healthy foods, and healthy options are becoming more accessible

through low-involvement purchases• Brand advocate Marshawn Lynch retired

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Findings

• Purchases are motivated by occasions or holidays, snacking, indulgence or emotions.

• Themed packaging and displays will help drive sales.• Just because Millennials want to be healthy doesn’t mean they don’t indulge. • Candy is low-involvement and easy to share.• Other NFL sponsors are doing more with their sponsorships.• Skittle needs to use its NFL sponsorship to its advantage.• Millennials comprise the majority of the “Super Fan” category.• Millennials are also most receptive to candy promotions.• Women have a different but equally important role in sports viewing/fandom.• Innovation is driving sales in the chewy segment.

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Recommendations• Find out how Skittles can stick to its brand identity but direct its efforts at NFL, such as team

flavors.• Discover how consumers interact with NFL touchpoints and other professional media outlets.• Discover if men or women are more likely to be “Super Fans.”• Discover who is most likely to host viewing parties. • Dig in to Skittles role in home viewing occasion. Is it a sweet dessert after the salty traditional

foods?

Hypothesis• Millennial women who attend NFL watch parties are more likely to view it as an experience.

We believe Millennial men are more likely to host NFL watch parties because they are less likely to attend a game.

• We also believe Millennial women will be more likely to purchase Skittles and bring it to the watch party, especially if they are NFL or team-branded. Women purchase more sports-merchandise than men.

• We believe Skittles will be added to the shopping list, instead of replacing something already on the list.

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