Wedgewood Nougat: Challenges in a niche premium brand expansion

Abstract

Subject area of the teaching case: This teaching case is well suited for short courses focussed on brand equity or marketing. It explores the following themes: Premium brand equity: managing the brand in different markets, and the process involved in finding the right partners who care about the brand. Market entry and penetration: strategies for growing in a market, testing a new market, and identifying the right products for a specific market. Product expansion: the considerations that need to be made when a company is expanding its brand into new markets. Student level: This teaching case is specifically aimed at postgraduate students completing a management diploma or a professional development course. Brief overview of the teaching case: This case is about a premium confectionery brand Wedgewood. The company started in KwaZulu-Natal, South Africa in 1999, with founder Gilly Walters’ handcrafted nougat aimed at a high-income target market. The retail product went on to be sold in stores nationwide. The company has since diversified its product range and tested markets both locally and abroad, with varying levels of success. In early 2020, Paul Walters, CEO, is considering options for the company. While his brother, Jon Walters, head of production and product development, is keen to increase global exports, Paul is less sure. The brand has been developed over the years and the product line expanded to consist of nougat, energy bars, and biscuits. While considering international markets, Paul must keep tabs on how to align the various brands in the process, and limit any potential damage to the brand equity to a minimum. With the company poised for exponential growth entering new international markets, Paul must consider the best expansion strategy. With business growth will they be able to maintain the core values of the business and the brand? Wedgewood will also need to think about staffing resources that would be required should they take on a massive international expansion. Expected learning outcomes: To analyse how a small family-owned business is able to achieve sustainable growth and expand its footprint To evaluate which business model creates the best platform for the expansion of a premium niche brand To create a branding strategy for international brand expansion