ICA 1-1: IN-CLASS ACTIVITY

Designing a Candy Bar1

Learning Objectives. To have students: (1) define a target market segment and
develop a simple marketing program for a product they are familiar with; (2) value the
practice of working in a team when engaging in the aforementioned aspects of the
marketing function; and (3) develop presentation skills they may need for later in the
course.

Nature of the Activity. To have students design a candy bar by specifying its
target market, marketing mix elements, and points of difference during the first class
meeting.

Estimated Class Time. 30 minutes.

Materials Needed.
 The Ghirardelli® Milk Chocolate with Caramel Squares bar from the
Instructor’s Survival Kit box.

 Samples of other candy bars that represent a variety of kinds (composition:

chocolate, caramel, peanuts, etc.; form: bar, drop, bundle, etc.;
sugar/nonsugar; etc.) sold in the U.S. and that students may be familiar with.
Purchase several of the following:

– Hershey’s: Milk Chocolate Bar, Kisses, Swoops, 1 Gram Sugar Carb Bar,
Sugar Free Chocolate Candy, Reese’s Pieces, etc.
– Mars: M&Ms, Snickers, Milky Way Bar, etc.
– Nestlé’s: Milk Chocolate Bar, Crunch Bar, Buncha Crunch, Butterfinger,
Baby Ruth, Skittles, etc.
– Other candy bars of interest.

To buy the Ghirardelli Milk Chocolate with Caramel Squares stand-up bag
(see
Slide 1-3), you will need to go to a local grocery store or mass merchandiser
(Wal-Mart or Target). Estimated cost: $3.25 per 5.32 ounce (~10 count). To
purchase one of the other candy options in bulk (Hershey’s Milk Chocolate
bar or Nestlé’s Crunch Bar), go to your local mass merchandiser (Wal-Mart or
Target) or warehouse club (Sam’s Club or Costco). Estimated cost: $15.00
per 36 count
(Sam’s Club).
1
The author wishes to thank (1) Ms. Jennifer Gebert, Associate Brand Manager at Ghirardelli Chocolate Company
for her assistance in the development of this ICA and (2) Dr. Richard Beltramini, who inspired this ICA when he
had him for a marketing principles course.
 Copies of the Designing a Candy Bar Handout.

 Easel with markers or black/white board markers/chalk for students to write

on/with.
Preparation Before Class. Follow the steps below:

1. Read pp. 12-13, 15 of Chapter 1.

2. Read, and if necessary, edit and print the CH01.doc Word file and the slides
from the CH01.ppt PowerPoint file for this ICA.

3. Get easels and markers of sufficient quantity for the number of student teams.

4. Make copies of the Designing a Candy Bar Handout for each student.

5. OPTIONAL: Bookmark the following websites on your classroom computer to

view a variety of candy bars from the top three U.S. candy marketers:

• Ghirardelli Chocolate: www.ghirardelli.com.

• Hershey’s: www.hersheys.com/products/chocolate.asp.
• Mars: http://www.mars.com/global/Who+We+Are/Who+We+Are.htm
• Nestlé: www.nestleusa.com/PubOurBrands/Overview.aspx.

Instructions. Follow the steps below to conduct this ICA:

1. Spend 1 minute and give the following mini-lecture about marketers and
their responsibilities:
“All of you purchase products and services every day, ranging from necessities,
such as food, clothing, and shelter, to discretionary items, such as candy,
music, and education. And marketers develop many of these products and
services with you specifically in mind—just look at the stores in and around
campus that cater to you!

To offer these products and services, marketers must first understand your
needs and wants. Then, they must:

• develop the features and benefits for the products and services that you
desire;
• charge a price that you are able and willing to pay;
• inform you that the product or service exists, where it can be purchased,
and perhaps offer you a small inducement to try it;
• make it available at locations where you are likely to buy it;
• ensure that it is superior to similar offerings available from competitors; and
• earn a profit for the organization.”
2. Spend 3 minutes and ask students the following questions about their
candy purchasing behavior:
 Question 1: How many of you buy candy? Why?
Answer: Students buy candy for a variety of reasons (taste, energy,
holiday, etc.).
Answer: Students will have bought candy from Ghirardelli, Hershey’s,
Mars, etc.
 Question 3: Have you tried any new candy within the past 1-3 months? If
so, what was it? Did you like it? How did you find out about it?
Answer: Most likely, students will have tried a new candy product.

3. Show Slide 1-3 and give the following mini-lecture to students.

“The Ghirardelli Chocolate Company has produced and marketed premium

chocolate products for over 150 years. These products include bars, hot
cocoa, and seasonal items in ‘a variety of delectable flavors.’ Recently,
Ghirardelli introduced a line of ‘Squares’ chocolates, one of the most popular
being the Ghirardelli Milk Chocolate with Caramel Squares.”

4. Show Slide 1-4 and pass out the Designing a Candy Bar Handout to
students.

5. Show Slide 1-5, play the TV ad, and spend 5 minutes asking students
the following questions about the ad using the handout as a guide:

“Ghirardelli recently launched the TV ad that you just saw to promote its
Ghirardelli Milk Chocolate with Caramel Squares. I’d like to ask you a few
questions about the ad:
a. Who is the target audience or market? Women.

b. What were the key features or benefits of the Ghirardelli Milk

Chocolate with Caramel Squares? Intense chocolate experience;
aroma; silky smooth texture; slow melting chocolate.

c. As shown earlier [go back to Slide 1-3, if necessary], what would you
charge for a bag of 10 of these ‘Squares’? Why do you think
Ghirardelli charges this price? The retail price is about $2.99-$3.50 for
a bag of 10 ‘Squares.’ Ghirardelli charges this price because it wants to
convey quality, prestige, etc.
 d. Why do you think Ghirardelli developed a TV ad for this product? To
reach women more effectively than other media (radio, newspapers,
magazines, Internet, etc.).

e. Where do you think consumers would buy this product? Grocery

stores, mass merchandisers (Wal-Mart, Target, etc.).

f. How is your candy bar different from those already on the market?
Unique shape, rich taste, high quality chocolate.”

6. Form students into 4-person teams.

“For the next 15 minutes, your team will design a candy bar based on your
personal experiences as candy bar consumers and your new role as potential
marketers. When designing your candy bar, be as creative as you can.
However, the candy bar you design must answer the following questions, as
shown in the handout:
a. Where and to whom will your candy bar be sold? The answer to this
question will specify the geographic location (U.S., Europe, etc.) and the
characteristics (age, gender, income, health-consciousness, etc.) of your
target market segments. Provide a rationale for the market segments you
select.

b. What is the product? The answer to this question will specify the
features, such as the ingredients, form, size, packaging, etc. and benefits
of the candy bar you think are important to consumers. Provide a
rationale for the product you create.

c. How much will consumers pay for it? The answer to this question will
specify the price paid for the quantity received by consumers. Provide a
rationale for the price you want to charge.

d. How will consumers find out about it? The answer to this question will
specify the advertising methods and message you will use to
communicate to consumers about the candy bar and the kinds of
inducements (coupons, samples, etc.) you will offer them to try it. Provide
a rationale for the promotions you want to use.

e. Where will consumers buy it? The answer to this question will specify
the types of retail outlets or “place” where consumers in your target market
are likely to buy the candy bar. Provide a rationale for the distribution
channels you want to use.

f. How is your candy bar different from those already on the market?
The answer to this question will specify the significant points of difference
of your candy bar. Provide a rationale for why your candy bar is superior
to those offered by the competition.”
7. Give the following instructions to complete this ICA:
“For the next 15 minutes, your team will design a candy bar based on your
personal experiences as candy bar consumers and your new role as potential
marketers. When designing your candy bar, be as creative as you can.
However, the candy bar you design must answer the following questions, as
shown in the handout:
a. Where and to whom will your candy bar be sold? The answer to this
question will specify the geographic location (U.S., Europe, etc.) and the
characteristics (age, gender, income, health-consciousness, etc.) of your
target market segments. Provide a rationale for the market segments you
select.

b. What is the product? The answer to this question will specify the
features, such as the ingredients, form, size, packaging, etc. and benefits
of the candy bar you think are important to consumers. Provide a
rationale for the product you create.

c. How much will consumers pay for it? The answer to this question will
specify the price paid for the quantity received by consumers. Provide a
rationale for the price you want to charge.

d. How will consumers find out about it? The answer to this question will
specify the advertising methods and message you will use to
communicate to consumers about the candy bar and the kinds of
inducements (coupons, samples, etc.) you will offer them to try it. Provide
a rationale for the promotions you want to use.

e. Where will consumers buy it? The answer to this question will specify
the types of retail outlets or “place” where consumers in your target market
are likely to buy the candy bar. Provide a rationale for the distribution
channels you want to use.

f. How is your candy bar different from those already on the market?
The answer to this question will specify the significant points of difference
of your candy bar. Provide a rationale for why your candy bar is superior
to those offered by the competition.”

8. When the 15-minute time is up, spend 5 minutes and have one student from
each team take a marker/chalk and go to the easel and/or black/white board
and write down their answers to the six questions asked in the Designing a
Candy Bar Handout.

9. Spend 5-10 minutes to discuss and compare the marketing programs that
the student team developed for their candy bars. Ask the following questions
of the entire class for discussion and probe their responses:
 a. Target market. Is it attractive enough (large, growing, etc.) to warrant the
expense of a marketing effort?

b. Product. What features/benefits are important to prospective customers?

Can they form the basis of a message that can be effectively
communicated?

c. Price. What is the price based on? Do you want to recover marketing
costs quickly by charging a higher price or do you want to achieve larger
sales earlier by charging a lower price?

d. Promotion. What relatively inexpensive actions could you use to inform

and induce prospective customers to try your product?

e. Place/Distribution. What traditional outlets? Will you sell your product

over the Internet? Why?

f. Points of difference. Does your product provide overall customer value?

Marketing Lessons. This ICA introduces students to the essential concepts of

marketing that marketing and product managers deal with on a daily basis. Students
should conclude that when developing a marketing program for a product, marketers
must: (a) select a set of market segments to target; (b) specify the marketing mix; and
(c) identify significant points of difference.

Websites. The candy marketers’ websites are: Ghirardelli: www.ghirardelli.com;

Hershey’s: www.hersheys.com; Mars: www.mars.com; and Nestlé: www.nestleusa.com.
 DESIGNING A CANDY BAR HANDOUT

MARKETING COUNTRY AND TO WHOM WILL IT BE SOLD?

PROGRAM AND (TARGET MARKET SEGMENTS)
POINTS OF
DIFFERENCE Country?______________________To Whom?____________________

What is it?
(Product)

Specify features,
benefits, form, size,
etc. and why

How much will

consumers pay for
it?
(Price)

Specify cost
and why

How will consumers

find out about it?
(Promotion)

Specify methods to
inform and generate
trial and why

Where will
consumers buy it?
(Place)

Specify types of
retailers and why

How is it different
from others?
(Points of
Difference)

Specify why it is
superior to the
competition
 8. When the 15-minute time is up, spend 5 minutes and have one student from
each team take a marker/chalk and go to the easel and/or black/white board
and write down their answers to the six questions asked in the Designing a
Candy Bar Handout.

9. Spend 5-10 minutes to discuss and compare the marketing programs that
the student team developed for their candy bars. Ask the following questions
of the entire class for discussion and probe their responses:

a. Target market. Is it attractive enough (large, growing, etc.) to warrant the

expense of a marketing effort?

b. Product. What features/benefits are important to prospective customers?

Can they form the basis of a message that can be effectively
communicated?

c. Price. What is the price based on? Do you want to recover marketing
costs quickly by charging a higher price or do you want to achieve larger
sales earlier by charging a lower price?

d. Promotion. What relatively inexpensive actions could you use to inform

and induce prospective customers to try your product?

e. Place/Distribution. What traditional outlets? Will you sell your product

over the Internet? Why?

f. Points of difference. Does your product provide overall customer value?

Marketing Lessons. This ICA introduces students to the essential concepts of

marketing that marketing and product managers deal with on a daily basis. Students
should conclude that when developing a marketing program for a product, marketers
must: (a) select a set of market segments to target; (b) specify the marketing mix; and
(c) identify significant points of difference.

Websites. The candy marketers’ websites are: Ghirardelli: www.ghirardelli.com;

Hershey’s: www.hersheys.com; Mars: www.mars.com; and Nestlé: www.nestleusa.com.