The Marketing Challenge with Chewing Gum
Marketers for firms who sell chewing gum are facing a challenging task. U.S. sales of chewing gum have fallen 15 percent to $3.5 billion since 2009 and companies are looking for new product ideas to win over consumers. Hershey’s has high hopes for its new product Cool Blast Chews, which went on sale this month. Ice Breakers Cool Blast Chews, which dissolve in a burst of mint after about 10 chomps, straddle the market sweet spot between mints and gum. But competition is fierce, as startups and entrenched players alike rush out new flavors and packaging.
Other creative marketing ideas include the Wrigley Co. effort to get some traction with an Orbit gum pack designed to fit snugly into a car cupholder. In an attempt to attract health-conscious consumers, the industry is selling all-natural varieties, including Glee Gum’s aspartame-free product in recyclable pouches. Trident created a limited-edition pumpkin spice gum and Wrigley marketed a “dessert delights” line that has included such flavors as Root Beer Float and Peach Cobbler.
So far, the rush to re-invent gum hasn’t made much difference. Last year, Americans chewed gum 1.4 times a week on average, down 30 percent from 2009, according to NPD. Aging boomers are giving up the habit often because of concerns surrounding their dental work. Many millennials never developed a taste for gum, preferring more trendy savory snacks. Fewer Americans are smoking so there’s less demand for gum to cover tobacco breath.
There’s one bright spot internationally: China, where gum sales almost doubled to $3 billion from 2009 to 2014 and are projected to grow an average of 6 percent through 2018, according to Euromonitor. But the food companies can’t lose focus on the U.S., where they still generate a substantial portion of revenue.
In January, Wrigley released the first national Juicy Fruit television ads in 10 years. One features two young men in a locker room making rude noises with their armpits. The sophomoric humor is targeted towards teens and young adults, who are often considered the lifeblood of the industry. As consumer behavior changes, it is critical that chewing gum marketers find new ways to create, communicate and deliver value to their customers.
Source: Craig Giammona, “Hershey wants to get Americans Chewing.” Bloomberg Businessweek, April 8, 2015.
Discussion Questions:
1. What promotional strategies would you use to increase awareness and usage of chewing gum by younger consumers?
2. Which market segments would you recommend chewing gum marketers target?
