FMCG brand owner Stuart Alexander has vowed to increase marketing spend on its recently acquired Chupa Chups brand, on the back of a decline in sales over the past decade.
The company was appointed as the Australian distributor of the lollipop brand, which is owned by Perfetti Van Melle, earlier in the year. Previously, brand management and distribution was handled by Cadbury for 11 years.
In the 12 months to November 2010, the Chupa Chups brand had no main media spend under Cadbury, according to Nielsen. However, Stuart Alexander's head of confectionary marketing Paddy Bryans told AdNews that the company planned to invest up to $2 million annually into the Chupa Chups brand.
He also said Stuart Alexander wants to increase Chupa Chups grocery market share of 55% to 60% over the next three years.
"The brand has experienced declines in the past ten years," Bryans said. "People all know the brand well, but they don't seem to be buying it as much anymore. This is linked largely with an increase in competitors, such as Starburst Sucks.
"Cadbury is a large company dealing mainly in chocolate, so perhaps there wasn't a great brand fit. The Chupa Chups brand was a small fish in a very big pond. The brand will be given greater importance at Stuart Alexander. We'll be making big efforts to raise its profile, and we'll be spending more on above-the-line marketing."
The marketing strategy in 2011 will involve increasing the brand's visibility in store, rolling out new products and flavours, and increasing focus on above-the-line advertising.
Bryans said that creative work for the brand will still be handled by Chupa Chups global agency BBH, but he conceded that Stuart Alexander might consider appointing a local advertising agency as the brand moves forward. He said this probably would not happen until 2013.
Chupa Chups' digital and experiential agency Taboo will continue to handle below the line marketing, while media buying will be handled by Stuart Alexander's media agency Razor.
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