This week's Marketing Magazine has confirmed my suspicion by saying that Dairy Milk has lost market share to arch-rival Galaxy. TNS in the article claim that Dairy Milk had posted growth below the market rate of 2% and Galaxy has grown 12% year on year.
'Jan Jesenovec, confectionery analyst at TNS, said that Dairy Milk's loss of share may be due to a lack of NPD. 'Advertising will not significantly increase your sales,' he added. 'It simply reinforces the positions of big brands.'
Dairy Milk and Galaxy use very different marketing strategies, and Galaxy attributed its strong performance to its unique positioning, which targets women in 'indulgent moments'. The brand has also been boosted by several high-profile partnership deals, including ties with the Sex and the City movie and the British Book awards.
The TNS analysis only answers part of the question. The other two parts of the answer are: 1) if you are going to create spectacular ads, also create spectacular experiences that add to your audiences life, such as branded content, branded applications and utilities, and promotions - DO, Not just Say; and 2) put the conversion mechanics in place. There is no point chatting-up a potential date if you are not going to ask him or her out on the date.
These are interesting times for the advertising business.
More Cadburys sales and graph analysis here