January 2008. By Ramon Diaz Bernardo, Professor of Marketing at IE Business School.Many think the success of the original lollipop company, Chupa Chups, is because they were the first to put a sweet on a stick. But the real key to this success story is good marketing.
The success of Chupa Chups is, as almost always, the consequence of various concurrent factors. Therefore, it is not easy to identify one single reason why Chupa Chups is today a large enterprise. Searching for the common denominator of these factors, I consider it reasonable to say that the key to the success of Chupa Chups lies in the fact that they have been very good at marketing.
Why does the key lie in marketing? Because, in my opinion, the companyÂ´s success can be summarised by examining how it has very efficiently managed for famous Ps of marketing: product, pricing, promotion and placement.
When we speak about product in marketing, we referred to something tangible, i.e. the product itself (in this case, a sweet on a stick) and to something intangible, i.e. the brand name. The product designed by Bernat in the 1950s was undoubtedly an innovation in the sweet world, but what I consider to be the radical innovation was the development of the brand name associated with the product. Bernat was a visionary when he realised that a somewhat undifferentiated product such as a sweet could be given a brand name and differentiated.Details