Altoids

9 Pages Posted: 21 Oct 2008

See all articles by Mark E. Parry

Mark E. Parry

University of Missouri at Kansas City - Department of Organizational Leadership/Marketing

Melanie Jones

University of Virginia - Darden School of Business

Multiple version iconThere are 2 versions of this paper

Abstract

In 2000, Altoids was the best-selling powermint with sales of $107 million. Within two years, however, sales had declined to $90 million. In part, Altoids's difficulties reflected the success of Listerine PocketPaks breath strips, which had generated sales of over $110 million in less than a year. The success of PocketPaks raised an important line extension question for executives at Callard & Browser-Suchard (CB)(a division of Kraft foods): Should Altoids introduce its own version of breath strips? If so, how should Altoids strips be positioned? What media mix should CB use for the launch?

Excerpt

UVA-M-0705

ALTOIDS

In 2000 Altoids was the best-selling powermint, with sales of $ 107 million. Within two years, however, sales had declined to $ 90 million. In part, Altoids's difficulties reflected the success of Listerine PocketPaks breath strips, which had generated sales of over $ 110 million in less than a year. The success of PocketPacks raised an important line extension question for executives at Callard & Bowser-Suchard (CB), a division of Kraft foods. Should Altoids introduce its own version of breath strips? If so, how should Altoids strips be positioned? What media mix should CB use for the launch?

Powermints

In 2001 Americans spent $ 1 billion on breath-freshening products, including $ 510 million on sugarless gum, $ 311 million on breath mints and fresheners, $ 150 million on “portable oral care” (e.g., breath strips and teeth whiteners), and $ 29 million for breath sprays. Exhibit 1 lists the top ten breath-freshening products in 2001.

The second-largest category, breath mints and fresheners, had experienced substantial growth in the late 1990s. Much of this growth was driven by extra-strength mints known as powermints. In 1996 powermint sales totaled about $ 200 million. Two years later, category sales were $ 300 million, and in 2000 powermint sales reached $ 383 million. Some attributed this rapid growth to the perceived ability of powermints to provide “instant gratification” and “a burst of energy.” Others claimed that powermints delivered “mood-altering multisensory scents and tastes” that offered “a kindler, gentler form of high. It won't harm you, but it puts you into an altered state for a few seconds.”

. . .

Keywords: New products product launch brand strategy extensions consumer behavior

Suggested Citation

Parry, Mark E. and Jones, Melanie, Altoids. Darden Case No. UVA-M-0705. Available at SSRN: https://ssrn.com/abstract=910118

Mark E. Parry (Contact Author)

University of Missouri at Kansas City - Department of Organizational Leadership/Marketing ( email )

5110 Cherry St.
Kansas City, MO 64110
United States

Melanie Jones

University of Virginia - Darden School of Business

P.O. Box 6550
Charlottesville, VA 22906-6550
United States

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