Swiss Miss In-depth Brief:

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History:  Swiss Miss was created by a man by the name of Charles Sanna.  Sanna was a mechanical engineer who after WWII was over worked on his family’s dairy farm.  During the time of the Korean War the dairy farm made packets of powdered creamer for the U.S. military.  In order to keep up with demand the company create a vast quantity of supply, however in the late 1950s they had a surplus of powdered creamers left over.  In order for them to not to go to waste Sanna knew he had to do something with them, and he thought they would make a good ingredient for hot chocolate.  “I believed that it would make an excellent ingredient for a hot cup of cocoa,” he once said, according to the New York Times.  So, at his home in Menomonie, Wisconsin, Sanna got to experimenting with different ingredient combinations and used his kids as taste testers until he got to a perfect recipe.  When naming the product his brother decided to call it Brown Swiss after a breed of cows.  This product was primarily sold to airlines and restaurants, however many stopped buying it as customers would start to steal the packets for personal use.  This didn’t deter Sanna though as he saw this as an opportunity to sell his product at grocery stores.  After developing a new longer lasting recipe Sanna relaunched the product under the name of Swiss Miss and the hot chocolate hit store shelves in the year 1961.  In 1967 Beatrice Foods purchased the company and 23 years later in the year1990 Swiss Miss’s current company Conagra Foods purchased them.

 

Facts:  Swiss Miss is the first instant hot chocolate mix that could be made with hot water instead of milk.

According Smith of the Post, the polar explorer Will Steger packed enough Swiss Miss to make more than 2,000 cups of the stuff when he embarked on a dog-sled journey across Antarctica in 1989.

Swiss Miss Hot Cocoa continues to be a popular treat; Conagra estimates that it sells more than 50 million boxes every year, the Times’ Roberts reports.

The manufacturer says the mix can be incorporated into 44 recipes, ranging from chicken mole skillet to tropical ambrosia salad.

For more than 50 years, we've been creating our signature Swiss Miss blend in a real dairy in Menomonie, Wisconsin. We support the more than 80 local dairy farms that supply us with farm-fresh milk every day, and we package all of our products here in the USA.

 

Core Purpose:  Bring happiness to their customers through all their products.  They work to create a product that brings joy to people and remind them of the past and good times.  According to an article published in the Gazette newspaper from February 2, 1963 Swiss Miss reminded them of the “good old-fashion hot chocolate that grandma used to make.”  They also said that they thought “the chocolate flavor is reminiscent of delicious Swiss milk chocolate.”1  They also want to stay rooted in who they are by continuing to support the local community and staying a company that generations of family members want to work for.  So when you pour a cup of Swiss Miss, you're getting a Taste of Real in every wholesome sip.

 

Core Competencies:  Of the top 3 brands they are the only brand that produces hot chocolate as their main product.  Swiss Miss also has a strong brand reputation and history with being the first hot chocolate that you could mix with water.  Swiss Miss has been enjoyed by generation and remains a staple item in many families pantries.

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Strengths:  Large ever evolving product line.  Brand recognition and history.  Consumer perception of brand being wholesome and believing that the quality and taste of the product are good.

 

Weaknesses:  Although Swiss Miss has healthier products their products still are loaded with sugar and sugar is one of the first ingredients listed.  Competition from larger brands that produce a wider variety of products and different brands. Swiss Miss is only perceived

 as a treat to be enjoyed around winter and not an everyday all year drink.

 

Category:  Food and instant drink

 

Products:

• Classics

  • MILK CHOCOLATE (Rich and creamy Swiss Miss Milk Chocolate flavor hot cocoa mix.).  8ct, 30ct, 60ct

  • MILK CHOCOLATE WITH MARSHMALLOW (Delicious Swiss Miss hot cocoa mix with marshmallows.).  8ct, 30ct, 60ct

  • MARSHMALLOW LOVERS  (Swiss Miss Marshmallow Lovers has separate envelopes with 4.5 times the marshmallows of regular Swiss Miss hot cocoa mix with marshmallows.).  6 ct

  • MILK CHOCOLATE CANISTER  (The rich and creamy Swiss Miss hot cocoa mix you love in a canister.).  22.23 oz, 28.5 oz, 39.4 oz, 58.4 oz

  • MILK CHOCOLATE WITH MARSHMALLOW CANISTER  (Delicious Swiss Miss hot cocoa mix with marshmallows in a canister.).  21.59 oz, 28.5 oz, 39.4 oz

  • MARSHMALLOW MADNESS  (Swiss Miss hot cocoa mix with separate envelopes packed with fun colored marshmallows and no artificial sweeteners.)  6 ct

  • SWISS MISS VARIETY PACK  (Fans of both Milk Chocolate flavor and Marshmallow will be delighted with this doubly delicious variety pack of Swiss Miss hot cocoa mixes.).  8 ct

• Limited Edition

  • CANDY CANE  (The perfect blend of milk chocolate and candy cane flavor, topped with mini peppermint swirled marshmallows.).  6 ct

• Simply Cocoa

  • SIMPLY COCOA MILK CHOCOLATE  (Five simple ingredients combine to create an indulgent, silky-smooth cocoa that is simply delicious!).  8 ct

  • SIMPLY COCOA DARK CHOCOLATE  (Five simple ingredients combine to create an indulgent, silky-smooth dark chocolate cocoa that is simply delicious!). 8 ct

• Sensible Sweets

  • REDUCED CALORIE HOT COCOA MIX  (Enjoy the great taste of Swiss Miss hot cocoa mix with only 25 calories per serving.).  8 ct

  • NO SUGAR ADDED HOT COCOA MIX  (The rich and creamy Swiss Miss hot cocoa mix you love with no sugar added.).  8 ct

  • NO SUGAR ADDED HOT COCOA MIX CANISTER  (The rich and creamy Swiss Miss hot cocoa mix you love with no sugar added in a canister!).  13.8 oz

• Indulgent Collection

  • DARK CHOCOLATE SENSATION  (More cocoa than regular Swiss Miss Milk Chocolate hot cocoa mix for a uniquely rich and creamy dark chocolate taste.).  8 ct

  • CARAMEL DELIGHT  (Chocolaty cocoa and smooth caramel flavor combine to create a rich, indulgent taste that keeps you warm all season long.).  8 ct

  • RICH CHOCOLATE  (For a more indulgent chocolate experience, try Swiss Miss Rich Chocolate hot cocoa mix.).  8 ct

• Cafe Blends (NEW)7

  • CARAMEL MACCHIATO  (Flavored with creamy caramel and lightly roasted espresso, this mix contains 1/2 the caffeine as a cup of coffee*, making it a perfect afternoon pick-me-up.).  *When compared to an 8 oz. cup of brewed coffee. (6 Envelopes)

  • MOCHA  (Take in the distinctive taste of dark Dutch cocoa blended with smooth roasted espresso for a light coffee boost* you can make at home.).  *Contains 1/2 the caffeine as an 8 oz. cup of brewed coffee.  (6 Envelopes)

• Pudding

  • OLD FASHIONED TAPIOCA  (The great taste of Swiss Miss pudding with old fashioned tapioca.).  6 - 4 OZ PUDDING CUPS NET WT 24 OZ (1 LB 8 OZ)

  • CLASSIC BUTTERSCOTCH  (The great taste of Swiss Miss pudding in a butterscotch flavor.).  6 - 4 OZ PUDDING CUPS NET WT 24 OZ (1 LB 8 OZ)

  • CREAMY VANILLA  (The great taste of Swiss Miss pudding in a creamy vanilla flavor.).  6 - 4 OZ PUDDING CUPS NET WT 24 OZ (1 LB 8 OZ)

  • CREAMY MILK CHOCOLATE  (The great taste of Swiss Miss pudding in a creamy milk chocolate flavor.).  6 - 4 OZ PUDDING CUPS NET WT 24 OZ (1 LB 8 OZ)

  • CHOCOLATE VANILLA SWIRL  (The great taste of Swiss Miss chocolate and vanilla swirled together in one creamy cup.).  6 - 4 OZ PUDDING CUPS NET WT 24 OZ (1 LB 8 OZ)

  • TRIPLE CHOCOLATE DREAM  (The great taste of Swiss Miss pudding with even more chocolaty taste.).  6 - 4 OZ PUDDING CUPS NET WT 24 OZ (1 LB 8 OZ)

 

• Found on Amazon but not on Swiss Miss site

  • Swiss Miss Hot Cocoa, Single Serve Hot Cocoa K Cup Pods for Keurig Brewers, Milk Chocolate. (Amazon).  https://www.amazon.com/Swiss-Miss-Cocoa-K-Cups-Chocolate/dp/B00I13XWSU/ref=sr_1_4?keywords=swiss%2Bmiss&qid=1567145197&s=gateway&sr=8-4&th=1

  • Milk Chocolate Light Hot Cocoa K-Cups.   https://www.amazon.com/GMT6114-Chocolate-Light-Cocoa-K-Cups/dp/B01M59BZ0Z/ref=sr_1_11?keywords=swiss%2Bmiss&qid=1567145475&s=gateway&sr=8-11&th=1

  • Swiss Miss Reduced Calorie Hot Cocoa, single serve capsules for Keurig K-Cup pod brewers.  https://www.amazon.com/Swiss-Miss-Reduced-Calorie-capsules/dp/B07L5RWLQS/ref=pd_bxgy_325_img_3/133-6415571-3362429?_encoding=UTF8&pd_rd_i=B07L5RWLQS&pd_rd_r=8a47f64c-d61c-4619-8600-414f03081d52&pd_rd_w=vgzyT&pd_rd_wg=1rexa&pf_rd_p=a2006322-0bc0-4db9-a08e-d168c18ce6f0&pf_rd_r=0TMV76ZDJCK4QE1R7EZH&refRID=0TMV76ZDJCK4QE1R7EZH&th=1

  • Keurig, Swissmiss, Milk Hot Cocoa Chocolate, K-Cup packs.      https://www.amazon.com/Keurig-Swissmiss-Cocoa-Chocolate-48-Count/dp/B00XAD7XRC/ref=sr_1_24?keywords=swiss+miss&qid=1567145475&s=gateway&sr=8-24

  • Swiss Miss Peppermint Chocolate Hot Cocoa, Keurig K-Cups.   https://www.amazon.com/Swiss-Peppermint-Chocolate-Keurig-K-Cups/dp/B01NCAECG1/ref=sr_1_55?keywords=swiss+miss&qid=1567145822&s=gateway&sr=8-55

  • Swiss Miss Sensible Sweets Light Hot Cocoa K-Cups for Keurig K Cup Brewers.    https://www.amazon.com/32-Count-Sensible-Brewers-Packaging/dp/B01LYUPRCZ/ref=sr_1_77?keywords=swiss+miss&qid=1567145822&s=gateway&sr=8-77

  • Swiss Miss Chocolatier Series Dark Chocolate Gourmet Hot Cocoa Mix Bag.       https://www.amazon.com/Swiss-Miss-Chocolatier-Chocolate-Gourmet/dp/B071KFS8NH/ref=sr_1_88?keywords=swiss+miss&qid=1567145822&s=gateway&sr=8-88

  • Swiss Miss Chocolatier Series Double Chocolate Gourmet Hot Cocoa Mix.    https://www.amazon.com/Swiss-Miss-Chocolatier-Chocolate-Gourmet/dp/B0721T13P3/ref=sr_1_127?keywords=swiss+miss&qid=1567146080&s=gateway&sr=8-127

 

Category trends and issues:  As a result of these trends, revenue is forecast to increase at an annualized rate of 1.1% to $893.5 million over the five years to 2023.  IBISWorld expects consumers to become even more health conscious over the next five years.  Dark, organic, unprocessed and fair-trade cocoa and drinking chocolate are anticipated to be more popular. According to the CDC, dark chocolate has been shown to reduce the risk for heart disease and colon cancer. Industry producers are expected to create more dark chocolate products because they contain higher levels of cocoa, which is also rich in antioxidants. Additionally, producers will find methods of cutting the sugar content in their products.

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Consumers have become increasingly informed and concerned about the exploitative treatment of cocoa farmers in emerging markets, resulting in greater demand for fair-trade and organic cocoa and drinking chocolate. Thus, some cocoa and drinking chocolate producers will increasingly consider this aspect when sourcing inputs over the next five years.

 

Although demand for domestic cocoa and drinking chocolate will grow over the next five years, demand for foreign cocoa and drinking chocolate will fall, favoring local premium cocoa and drinking chocolate producers. Imports are expected to decrease at an annualized rate of 2.5% to $251.9 million over the five years to 2023. Furthermore, imports are expected to account for 23.4% of domestic demand in 2023, down from 27.0% in 2018. Additionally, the value of exports is expected to decline at an annualized rate of 1.3% to $67.4 million over the five years to 2023, despite an expected marginal depreciation of the US dollar. In 2023, exports are expected to generate 7.5% of industry revenue.

 

Cocoa industry trend:  According to PricewaterhouseCoopers (PwC), Africa accounts for 70.0% of global cocoa production, with Côte d'Ivoire alone accounting for 40.0% of global cocoa bean production.  Over the five years to 2024, the world price of cocoa is forecast to rise at an annualized rate of 1.3% to $2.41 per kilogram. The price of cocoa is generally higher in the summer months.  While health-consciousness is expected to generally curb demand for chocolate, consumers are increasingly interested in noted health benefits of high-quality dark chocolate. Thus, producers will likely shift some focus to providing higher quality goods, in turn raising raw cocoa prices.

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Sugar: Over the five years to 2024, the price of sugar is expected to increase an annualized 0.5%. Despite an increase in sugar production over the next five years, prices are expected to increase.

 

Competition:

Nestle SA, Market Share: 34.1%, Brand Names: Ovaltine, Nesquik, Nestle Hot cocoa mix

Switzerland-based multinational company and one of the largest food manufacturers in the world. The total powdered and liquid beverages segment accounted for 22.7% of the company’s total sales in 2017.

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Though Nestle primarily distributes powdered coffee in its powdered and liquid beverages segment, it is a major distributor of cocoa and drinking chocolate with a strong brand reputation. In recent years, Nestle has worked strenuously to increase its brand reputation through acts of sustainability and global service. Over the past decade, Nestle halved the amount of greenhouse emissions per ton of product. Furthermore, it engaged with cocoa farmers as part of its Nestle Cocoa Plan (NCP), whose goal is to ameliorate the lives of farmers in Nestle’s cocoa supply chain.

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Over the five years to 2018, Nestle’s industry-relevant revenue has slightly decreased at an annualized rate of 0.5% to $288.1 million. Nestle’s brand reputation has helped bolster its sales during the current period, particularly due to the growing consumer shift to more expensive organic and unsweetened products, which has negatively influenced the company. Additionally, the company’s strong brand awareness has maintained revenue, with many consumers still focused on cost savings and purchasing Nestle’s classic products.

 

Conagra Brands Inc., Market Share: 25.8%, Brand Names: Swiss Miss

Conagra participates in the Cocoa and Drinking Chocolate Production industry through its brand Swiss Miss, a subset of its grocery and snacks segment.

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Conagra's industry-relevant revenue is expected to decrease at an annualized rate of 2.4% in the five years to fiscal 2019 to total $217.9 million. Rising health concerns surrounding sugary beverages, including Swiss Miss, has negatively affected industry revenue during the period. In fact, Conagra's cocoa and drinking chocolate market share has decreased over the period despite Swiss Miss remaining a staple pantry item in many American homes. Changing health concerns and rising disposable incomes have allowed consumers to trade up to more premium and costly cocoa and hot chocolate beverages. Overall, these changes in consumer preferences have hurt many larger industry operators, including Conagra.

 

The Hershey Company, Market Share: 16.4%, Brand Names: Hershey's

The Hershey Company (Hershey’s) is the largest publicly-owned chocolate manufacturer in North America. 

Over the past five years, Hershey’s revenue growth has been somewhat volatile, partially as a result of increased internal competition. In July 2014, the company announced an 8.0% increase in the selling price of most of its chocolate products as the world price of cocoa increased 25.6% that year. While disposable incomes during the period increased, changing consumer preferences and health trends have negatively affected Hershey’s industry-relevant revenue. Demand for low-cost hot chocolate beverages has decreased, as consumers are increasingly opting for premium industry goods. As a result of these factors, Hershey’s US industry-specific revenue is estimated to decrease at an annualized rate of 3.8% to $138.1 million over the five years to 2018.

 

Lindt & Sprungli AG, Market Share: 3.2%, Ghirardelli

Based in Switzerland, Lindt & Sprungli AG (Lindt) is a world-renowned producer of premium chocolates. Ghirardelli produces its well-known chocolate squares as well as cocoa powders for hot chocolate. Ghirardelli has experienced strong growth over the five years to 2018, with its high-end products benefiting from growing consumer shifts toward higher-quality, healthier products. With a strong, growing brand known for quality, Ghirardelli has been able to expand its market in part by growing its retail presence. The brand has an existing partnership with the Walt Disney Company (Disney), which was broadened in 2013 with the opening of a Disney Ghirardelli location on Hollywood Boulevard in Los Angeles, in addition to the store in Disneyland in Anaheim, CA.

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Competitive Landscape:  Market Share Concentration in this industry is high.  The top four major players are expected to generate 79.5% of industry revenue in 2018. Industry concentration has steadily declined over the past five years as consumers demand more premium goods created by niche operators. As a result, the number of enterprises increased an annualized 2.8% over the five years to 2018, with more operators specializing in niche cocoa and drinking chocolate products. The top three producers offer low-cost hot chocolate, which has gradually declined in popularity following a growing health trend away from low-quality, sugary products. Additionally, improved disposable incomes, as a result of an improving economy, have allowed many consumers to switch their preferences to more expensive, healthier products. As a result, the market for low-end products has shrunk, hurting major players.

 

Internal competition

Companies that offer higher-quality products are better able to pass off rising input costs, as consumers already expect these goods to have a substantially higher price. Thus, price increases are less noticeable for higher-end products than they are for low-cost industry products.

Additionally, the quality and source of ingredients have become more important to consumers in recent years. In response to a growing demand for sustainable and ethical products, industry operators who implement supply-chain initiatives with an aim to increase the use of certified cocoa will have an advantage.  Strong brand recognition may often supersede other factors such as price or actual quality.

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External competition

As a beverage, hot chocolate competes with substitutes such as tea and coffee, which contain less sugar as a solitary beverage.  In addition to substitute products, imports are a form of external competition for the industry. Chocolate and cocoa imported from countries, such as Switzerland and the Netherlands, are perceived to be of higher quality. Finally, trade agreements also make it easier for countries to ship chocolate to the United States.

 

Over the five years to 2018, the number of industry participants increased at an annualized rate of 2.8% to 31 enterprises, heightening competition.

 

Cost Structure Benchmarks:

A company that makes and sells premium cocoa will have higher profit margins than one that produces generic low-cost hot chocolate.  The average industry profit margin, for operators in the Cocoa and Drinking Chocolate Production industry has decreased from 14.8% in 2013 to 12.5% in 2018, as the cost of inputs has increased. Profit has fluctuated widely over the past decade due to the volatility of raw material prices. In the five years to 2018, the world price of key inputs in the production of chocolate, which include cocoa and sugar, varied significantly. Over the five years to 2018, the world price of sugar increased an annualized 6.2%, while the world price of cocoa decreased an annualized 3.1%.

 

Purchases represent the largest expense category for Cocoa and Drinking Chocolate Production industry operators (51.8%).

 

Product Segmentation: 

Sweetened hot chocolate

This product segment accounts for the largest share of industry revenue because sweetened products are largely low-priced products that appeal to cost-conscious consumers. Moving forward, this segment is expected to decline as consumers are increasingly adopting healthier diets, threatening this product segment and the industry at large.

 

Unsweetened hot chocolate 

Unsweetened hot chocolate contains no sweetening additives and is typically associated with more expensive higher-end hot chocolate products. Industry operators are increasingly developing unsweetened hot chocolate product lines to cater to health trends. Over the five years to 2023, the unsweetened hot chocolate segment is expected to grow as rising disposable income enables consumers to adopt healthier hot chocolate alternatives.

 

The Economy:  Real (inflation-adjusted) GDP is projected to grow by 2.3 percent in 2019, supporting strong labor market conditions that feature low unemployment and rising wages. This year, real output is projected to exceed CBO’s estimate of its potential (maximum sustainable) level. After 2019, consumer spending and purchases of goods and services by federal, state, and local governments are projected to grow at a slower pace, and annual output growth is projected to slow—averaging 1.8 percent over the 2020–2023 period—as real output returns to its historical relationship with potential output. From 2024 to 2029, both output and potential output are projected to grow at an average pace of 1.8 percent per year, which is less than the long-term historical average. That slowdown occurs primarily because the labor force is expected to grow more slowly than it has in the past.

 

IBISWorld estimates, industry value added (IVA), a measure of the industry's contribution to the overall economy, is forecast to increase at an annualized rate of 0.1% over the 10 years to 2023. Comparatively, US GDP is anticipated to also rise at an annualized rate of 2.2% over the same period. IVA growth below the overall economy is a characteristic of a mature industry.

 

Industry Life Cycle:  The Cocoa and Drinking Chocolate Production industry is in the mature phase of its life cycle, as it experiences full market acceptance of its products.  Consumers wholeheartedly accept cocoa and drinking chocolate as a common food item domestically and internationally, making it highly unlikely for the industry to experience a growth spurt and enter the growth life cycle stage.  Additionally, because cocoa and drinking chocolate are so closely linked to American culture, it is unlikely that this industry will soon enter a declining life cycle stage.

 

Problem:  Health concerns are negatively impacting the industry as consumers are seeking healthier choices.  As consumers are becoming more aware of negative effects of sugar, they are being more health conscious and are seeking better choices.  Due to growing health concerns and increased disposable income consumers are opting for premium, organic, no artificially sweetened hot chocolates even though they cost more.

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 In response to a growing demand for sustainable and ethical products, industry operators who implement supply-chain initiatives with an aim to increase the use of certified cocoa will have an advantage.

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Additionally, hot cocoa and drinking chocolate products are often marketed as winter beverages and demand often peaks in the winter months.

 

Health consciousness:  Over the past five years, consumers have become more health conscious, cutting foods high in sugar, fat and calories out of their diet. To combat the unhealthy perception, producers have developed healthier cocoa and drinking chocolate products such as organic cocoa and lower sugar options. Additionally, hot cocoa and drinking chocolate products are often marketed as winter beverages and demand often peaks in the winter months.

 

Over the past five years, a large number of consumers adopted healthy eating trends and became more cautious about eating excessive amounts of sugar, the main ingredient in cocoa and drinking chocolate. This shift curbed industry demand and revenue, as consumers switched to healthier food options. In response, some cocoa and drinking chocolate producers developed new products with lower sugar and fat content, including specialty and high-end cocoa and drinking chocolate. These products have become increasingly popular as consumers’ disposable incomes grew, but continue to account for a relatively small portion of industry goods.

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The move to healthier chocolates can also be partly attributed to changes in regulation. In June 2015, the US Food and Drug Administration announced that trans-fat must be phased out of all food products by 2018. 

 

Research done on cocoa has brought health benefits to the attention of certain consumers, helping bolster revenue for the industry. Although most research is conducted on raw cocoa powder, the results have translated to greater industry demand. It is important to note that as the sugar and milk content in industry products increases, the health benefits of cocoa decreases. Additionally, health benefits are greater when cocoa is unprocessed, raw and organic. According to the American Association for the Advancement of Science, drinking hot cocoa can help increase oxygen and blood flow to the brain. In addition, cocoa has been cited as a good source of antioxidants, which can help prevent cancer, heart disease and physical signs of aging. Despite the reported health benefits of consuming cocoa, public perception remains that cocoa and drinking chocolate beverages is an indulgence.

 

The Importance:

Customer

As Swiss Miss has been around for over 50 years, they have built a strong brand reputation with their customers.  Customers know that Swiss Miss offers a quality product that reminds them of their childhood.  It is important for Swiss Miss to continue to succeed as they offer a wholesome product to their customer and remains a staple item for any pantry and winter night.

 

Community

Swiss Miss is important to the community as they proved many jobs located in the us and more specifically Menomonie, Wisconsin.  It is also important that Swiss Miss succeeds because they been a part of the community for years supporting local farms by using milk from 80 different dairies.

 

Company

It is important that the company continues to succeed not just because they provide many jobs but because of their history of having multiple generations working for Swiss Miss for years.  It is also important that they succeed because unlike their competitors Swiss Miss specializes in hot chocolate and doesn’t have many other produces under that brand to lean on.  This company also was Charles Sanna’s greatest achievement and a month before he died, he told the Wisconsin State Journal “It’s nice to know,” that you’ve done something that will carry on.”  This company not only meant a lot to him but also to his family who worked with him like his parents, brother and children.

 

Potential Goal:  To reinvigorate the Swiss Miss brand and position it as an affordable but high-end, wholesome brand.  We also want to convince customers that Swiss Miss is more than just a treat that should be enjoyed during the winter but instead something that can be enjoyed every day like people’s cups of coffee or tea.  Finally, we should introduce a few healthier choices to the Swiss Miss product line.

 

Five Year Plan:  With the hot chocolate industry fairly stable and the domestic market is projected to grow Swiss Miss should see an increase in sales over the next five years.  If the goals set are achieved than Swiss Miss should grow in popularity and be a strong competitor to the coffee and tea industry.  Also, with the brand update it should help to bring in new customers while still retaining the old ones, increasing their market share and taking some away from their biggest competitor Nestle.

 

Campaign Needs:  Package redesign to make it feel more upscale while also feeling classic and wholesome.  A way to represent it as not just a winter drink, rather an everyday drink that can rival coffee and tea.  We need to create look into creating product extensions for healthier and more premium choices.  Finally, we need to create advertising and an experience that evokes a warm feeling while also making Swiss Miss feel like a high-end drink.
 

Design History:  During the early 1960’s Swiss Miss introduced the “Swiss Misses” a swiss woman mascot for the product.  In the 1970’s Swiss Miss updated their mascot to a Claymation doll that they used on their packaging and for advertising in commercials.  The late 1980’s saw yet another update to their packaging where they removed the flowing on their boxes, modernized the logo design and replaced the Claymation doll with a picture of a real girl.  At some point during the late 1980’s and mid 2000’s Swiss Miss decided to stop using a girl on their packaging.  During the mid 2000’s Swiss Miss updated their design again to include a blue background shield with Swiss Miss and mountains inside of it.  This updated logo was designed with the intention of making Swiss Miss feel more like a premium brand.  That design didn’t stay long though as in 2010 they update the log again to make the shield more rounded.