Skittles: An analysis of Skittles global positioning

1. Creating the Brand Experience
Skittles Case Study
August 23, 2005
SAATCHI & SAATCHI

2. Objectives
• Why and how did Skittles change its brand
positioning and creative strategies?
• What exactly did Skittles change?
• What is the roadmap for developing insightful and
impactful communications?

3. Skittles Background
• A European favorite, Skittles was launched in the
USA in 1981
• A bite-sized candy with a coated hard shell and
chewy center
• Competitive set: Fruit-flavored confectionaries,
primarily non-chocolate candy and gum

4. Confectionary Market Dynamics (USA)
• Non-chocolate candy sector value is $5.3B
– Chewy candy: $659MM for 2003, 1.4% YOY
– Gum: $309MM for 2003, (4.8%) YOY
• 427 new candy products were launched in 2004
• Per capita consumption of candy and chocolate
is 22.3lbs for 2003 vs 18.9lbs in 1984
• Mature and consolidating sector w/ increased
competition from other vertical “players”
Source: USDA; National Confectioners Association; Convenience Store News, 2005

5. Confectionary Trends
• Novelty
– Part candy, part toy
• Licensing and entertainment partnerships and tie-ins
• Transformers
– Candy changes into gum
• Extreme mints
– Liquid mint blasts and capsules
• Mash Ups
– Unorthodox flavor, texture, and taste combinations
Source: candyindustry.com, 2005

6. Make me Feel “It”
Intensity of Experience
Concoctions &
The Usual
Wizardry
Creativity
Sweeten Up
Not inclusive of broader competitive set eg, macrosnacks

8. “Taste the Rainbow”
A Functional Benefit Strategy
Pre 2005

9. Skittles: Product Truths
• Hard, shiny, colorful shells
• Fruit-inspired soft, chewy
center
• Round/disc-like
• Fruity and floral aromas
• Noisy and crunchy
• Signature “S” badge
Base Brand (Original Skittles), does not include line extensions

10. Taste Messaging…Simple but Limiting
• Skittles previous communications (pre 2005)
focused solely on taste and flavor messaging
– “Taste the Rainbow”
– Target: Gender Agnostic teens, ages 13-17 who
frequently consume macrosnacks
– User Benefit: Combination of fruity, tropical, and
colorful flavors; multi-sensory (hard & chewy) -
Rational
– Reason to Believe: Only Skittles brand is the
color of the rainbow

11. A Literal & Undifferentiated Positioning
Brand Message
“Taste the Rainbow”
Product Offering
Experience the different
hues, flavors of Skittles
Consumer Motivation
When I want a fruit-flavored candy

12. Only 1/2 of the Story
“Taste the Rainbow”
(Product)

13. Diagnosis
• Messaging taste and flavor in a commoditized and
undifferentiated category, where rational elements
are the “price of entry” is not a strategy
• Product has become king, trumping the actual
brand; once consumption is finished, the brand has
no extraneous role for the user
– No emotional dialogue or relationship with
user/audience

14. Implications
[Young] consumers value relationships with brands
that have a clear POV, stand for something, and are
different. Brands that do not strategically sound
brand promise, defined essence, and positioning,
run the risk of consumer disinterest
– Low awareness
– Infrequent consumption
– Ambiguous perceptions
– Negative equity measures (eg, regard,
recognition)
– Weak brand loyalty

15. “Believe the Rainbow. Taste the Rainbow.”
An Evolved Experiential Brand Strategy
2005

16. Skittles: Target (Lifestyle)
• 13-17year olds; sweet spot 16
• Full time students (junior to high
school)
• Responsibilities: Part time gig,
community service, familial duties
• Living life to the fullest (active)
• Social creatures powered by
positive energy
• Vibrant and dynamic personalities
• Multi-cultural/ethnic
• Self expressive and experimental
• “On the Go” but not sure how to
get “There” yet…
Source: LSI, 2005

17. Skittles: What/When is it for?
• Functional
– Gives me a boost
– Lets me focus
– Satisfies my indulgence
– Flavor rush
– Allows me to feel
• Emotional
– Makes me excited
– Brings out positivity
– Changes my perspective
– Makes me happy
– Engages all of my senses
– Affirms my good mood

18. The Solution
[Young] consumers value relationships with brands
that have a clear POV, stand for something “real”,
and are freshly different. The experience can be
greater than the product.
Develop natural product extensions that organically
create occasions/moments for the desired and
intended experience and/or solution to an unmet
need.

19. Skittles Smoothie Mix Skittles Bubble Gum Skittles: Original, Sour, Tropical,
“Blend the Rainbow” “Inflate the Rainbow” “Hear, See, Touch, Smell, Taste… the
Rainbow”
Multi-sensory Experience

20. Consumer
Brand Product
“As Real As It Gets”

21. FROM TO
CANDY EXPERIENCE
IRRELEVANT IRREVERENT
COLOR PASSION
EXPECTED UNPREDICTABLE
13-17 LIFESTYLE

22. To users ages 13-17, sweet spot 16, who use candy and macrosnacks, only Skittles delivers a
fruit-inspired multi-sensory experience to color your world…
Brand Essence EXPERIENCE
LIFE IN
COLOR
Emotional “LIVE W/IN
RAINBOW”
Functional “TASTE THE RAINBOW”
Assumed brand positioning and benefits

23. “Believe the Rainbow.”
(Brand)
The Skittles Experience
+
“Taste the Rainbow.”
(Product)

24. Results
• June 2005 sales have increased 10% (IRI)to approx.
$80MM for the 52 weeks ending July 10, 2005
• Unaided Awareness increased 3% (Ipsos-ASI)
• June 2005, Skittles.com had 318K visitors vs 11K for
the same period in 2004
Source: Adweek, August 8, 2005

25. Advantages of a Prescient Strategy
• Inspiration and development for revenue-building
brand extensions - both flavors and new products
• A Skittles differentiated brand in the non-chocolate
candy and gum sectors, and the MasterFoods/Mars
portfolio
• Resonation with the target audience - credible and
“future proof”