EXECUTIVE SUMMARYQuaker Oats is on a mission to continue spreading Oat Goodness for another 100 years.To be able to accomplish our goals we will need to have a renewal of the company insideand out. We plan on having our focus for 2012 Market plan to push forcreativity, sustainability and growth. These goals can only be accomplished if all members ofmanagement and staff are productive, efficient and effective. Working together to enter anew phase in history for the company and maintaining a positive image, competitive edgeand overall growth. The main focus of our marketing goals for 2012 is to listen and connect with our consumers. Our objectives are to gain trust, become a resource and build long lasting relationships with our target market. To accomplish these goals we will put our marketing efforts into socialmedia and the online world. This will enable us to engage and listen to conversation, conduct research and share advertisement in an efficient and effective way.Together we can transform our company into a model corporate citizen and make relationships with consumers, other companies and adapt to the changing times.With GMO regulation pending and growing consumers concern over the quality of their food this is the perfect time to lead our industry into a more sustainable,healthy & environmentally aware way of conducting our business. With a renewed commitment to our mission and new approaches to our consumers we hope to engage all of our employee’s in our efforts to grow and evolve in 2012.
Company Goals Renewal Growth • Improv e on Overa ll operationa l • Long term grow th and profitability efficiency and effectiv eness.• Build and Expand nutrit ion business • Productiv ity Focus• Increase availability of macro snack • Simplifica tion of decisio n making • Creativity Focus • Efficiency of financia l manag ement • Maintain a good reputation Sustainability • Reach out & engage w ith consumersCreate a positive business environment • Incorpora te techno logy in all aspectsthough honesty, integ rity and fairness of company Responsible Corporate citizenship Improv e aspects of the w orld : • Build relationships w ith other • Environment business that focus on nutritio n • Economic • Social • Position company for future grow th
SALES Annual Industry $13 Billion 2012 GMO Sales Trends Annual growth of 4.9% GMO Free Foods went up 67 % & Annual Breakfast Cereal saw sales growth of $60.2 million Sales$7.7 Billion in market share Ibisworld.com Non GMO Project is growing andTrends partnering within the industry (Kashi) Thinking outside the box Forecast Healthy Foods & Drinks Demand will enable modest Time Saving products pushes Growth industry demands Consumers are on the go Market Share Quaker Foods North America (QFNA) Drop in 2011 - 1.9 shares as sales fell 4.5%. This drop can be related to the bad press received from the GMO Census Report contamination and loose of company http://bit.ly/MxSsxa approval
QUAKER OATS SALES650 “Net revenue declined 3 percent and640 volume declined 5 percent, reflecting general630620 Sales category trends. Operating profit declined 10 percent, primarily610 reflecting the benefit from an 2012 2011 inventory accounting change recorded in the prior year, which Quaker Oats Sales contributed 7 percentage points to $ 623 million as of 3/24/2012- United the decline.” States $ 640 million as of 3/19/2011- United States PepsiCo Website Earning Release 11% Difference http://bit.ly/NQD8ic 2011- Total Sales for Cold Cereal $ 410,410,900 O P E R AT I N G P R O F I T $87 Million -2012
QUAKER OATS SWOT Strengths Opportunity 130 in Business Entered Global Market 1 st to trademark Breakfast Cereal India’s a growing market 1 st to Advertise in National Healthier option versus Fast Food Magazine European Market - recently 1 st to introduce convenience banned GMO breakfast cereal Weakness Threat Controversial Image of “Healthy New Products Option” Consumers are more educated Cross Contamination of Products about products Lack of Sustainable or Fair trade False advertising Lack of Innovation Customer disapproval
ENVIRONMENT Technology Political Use technolog y to mak e operation s efficien t GMO are a key topic in the Marketing Commu n icatio n Tools current political arena. There Custo mer Service is anticipated change in GMO Offers renewal to co mp an y Labeling and distribution. 33 countries have banned Social Environment GMO’s. Approximately one in every seven people on Monsanto vs. 3000 Farmers http://bit.ly/OIMX05 Earth is using Facebook daily http://bit.ly/NEYC0v More than 250 million people access Facebook Industry through their mobile devices S t ro n g re p re s e n t a t i o n i n t h e More than 2.5 millio n websites have integra ted G re a t L a ke s R e g i o n . with Facebook I L , O H , M I re p re s e n t 2 1 % o f t h e i n d u s t r y. ( JeffBula s.co m )*** (This number is calcula ted by dividing the planet’s 6.94 billion inhabita nts C h i c a g o , D e t ro i t , C l e v e l a n d a n d M i l w a u ke e a re h o me t o by Facebook’s 900 millio n users) the leaders in this industry .
CONSUMER ANALYSIS “Americans are voting with their forks” Demographic: Age: 22-44(Women in this age are the most engaged age group on Facebook Page) CBS Report- 53 % said they do not want Primary: Women :Mothers, Students and to by GE Foods Young Professional MSNBC Report- 96% of respondents Secondary: Students, want Labels for GE Foods =40,000 People Young Professionals & Families • Research shows GMO Free Concerned About: Food conscious foods is up 67% in 2009 with Environment sales growth of $60.2 million Food taste http://bit.ly/MeKacA Food security Food safety • Organic Food customers Personal Health show interested in the Product Integrity same things Sustainability
TA R G E T P R O F I L E A LWAY S “ O N T H E29 YEAR OLD WOMEN GO” & LOOKING FOR“ K AT H Y ” C H I C A G O I L H E A LT H Y O P T I O N S Student ProfessionalEnjoys learning Has recently entered the & is always involved in workforce professional Looking to advance her development careerNight classes & Works full time SeminarsPurchase’s based Purchase based on on Health & Convenience and Health Convenience Mother Purchase based on Healthy options & Convenience On the Go Healthy for kids Easy to transport
Kellogg- Strengths phytosterols 42% of Global Market OpportunityDirect Strong Brand Global MarketCompetitor Recognition Kids MarketSWOT Convenience Mergers/ Distribution Weakness ThreatAnalysis Lack of Innovation FDA Lack of Sustainable or Label Restrictions Progressive Products Consumer Awareness No Organic or Fair Image-Bad Press Trade Cost Inflation Products contain plant Kashi – Indirect Competitor Commitment to Natural and Healthy products Partner of the GMO Free Project & Verified Young company with fast growth Bad press and customer disapproval
MARKET INTRODUCTION STRATEGY M a r ke t D e v e l o p me n t Diversity Healthy for you and the planet Diversify content and approach to consumers. P ro mo t i n g G M O F R E E F o o d s Offer educational, entertaining and engaging content. Modifications P ro mo t i n g e n v i ro n me n t a l re s p o n s i b i li t y Improve operations D i g i t a l M a r ke t i ng Alter campaign based on conversation O f f e r i n g c o mp re h e n s i ve re p o r t s o n & engagement p ro d u c t s & b e n e f i t Work within the company and P ro d u c t D e v e l o p me n t communicate with all departmentsThis product is in the decline stage of through out the campaign its life cycle.B a d P re s s a n d c o n s u me r d i s t r u s t h a s l e d t o this decline. G M O P r o j e c t Ve r i f i c a t i o n a l o n g w i t hpartnership can help to regain public trust. P ro d u c t i v i t y I n i t i a t i v e s t h a t w i l l b r i n g c o mp a n y o p p r i t n u t i e s t o s a v e c o s t C re a t i ve f o c u s t o d i s t i n g u i s h p ro d u c t f ro m c o mp e t i t o r s
MARKETING MIX Product- Distribution Offer GMO Free Tests to Midwest & Great Lakes consumers to maintain Region integrity Offer variety of flavors Chicago, Milwaukee Offer New On the Go option Detroit, Cleveland & St. Branding Louis Renew image of product as well Distribute in places where as commitment to GMO Free Foods target audience are spending Healthy & Convenience time including: Commitment to Grocery Stores, Health environment, social & economic responsibility Markets, Convenience Stores Packaging Office Centers New Design Recycled packaging University and College areas On the go option
PROMOTION Objective Fallow and align with Media Trends Using YouTube video & Vimeo to distribute Communicate with advertisement Consumers Start Blog Interact on social networks Increase use with ( i.e. Facebook, Twitter, Google+…) electronic communications PR-”Good Press” News Outlets Increase Digital Marketing ( i.e. Huffington Post & NYT) & Distribution Q u a ke r G o a l s : Renewal & connection Web s i te O n e - t o - o n e M a r ke t i n g Add descriptions to B u i l d i n g L o n g t e r m c o n n e c t i on pages & pictures Promote transparency & Authenticity Add new Interactive Open communication channels component Become a recourse Focus on mission Align Marketing with company mission Quality Reports and Renew image Test
Facebook YouTube Twitter Google+ Become a recourse Engagement ConversationCompany Giving Blog Recipes Brand Awareness Company News
Customer Service Goals I n crea sing O n l i n e C u s t o mer S erv i ce a n d I n t era ction Pro v ide a n s w ers t o p ro b l ems o n l i ne Beco me a rel i a ble a n d g a i n co n s u mers t ru s t Retentio n Listen & Respond to consumers ideas and needs Start Conversation & Engage Consumers Create a user centric experience Po l icy Provide Company Social Media Policy to all employ ee’s CUSTOMER Offer Rules, Tips & Ways to get involved with Social SERVICE Media Team Clear guidelines and rules for company accounts & ways to provide customer service via social media N eed s o f C o n s u mers Li s t en t o co n s u mers a n d f i t t h e n eed s O p en d i a l ogu e w i t h co n s u mers v i a s o ci a l med i a R es p o n ds t o n eed s q u i ckl y a n d ef f ect ively Pro v ide ex cel len t cu s t o mer s erv i ce t o a l l cu s t o mers R es p o n d q u i ckl y a n d ef f i ci ently t o cu s t o mer p ro b l ems
RECOMMENDATIONS T h e F u t u re o f t h e C o mp a n y D e p e n d s O n Lo n g Term its ability to change and evolve to fit the Ren ew ed co mmi t men t t o mi s s i o n & o f t i me s . Te c h n o l o g y h a s c h a n g e d t h e w a y r es p ons ibility an d s u s t ai nability. c o mp a n i e s o p e r a t e a n d c a n b e u s e d i n Reg ai ning p u b lic t r u s t an d co n s u mer ma n y w a y s t o e n h a n c e t h e q u a l i t y o f t h e s u p port t h r o ugh co mmu n i cation an d o p en nes s . Q u a ke r O a t s c o mp a n y. S h o rt Term C o n s u me r s h a v e c h a n g e d a n d c o mp a n i e s S t ar t t o u s e n ew ap p r o aches t o need to be able to adapt to new practices mar k et ing an d s o ci al med i a. a n d a p p ro a c h e s s u c h a s LI S TEN TO & co n n ect w i t h co n s u mer s. t r a n s p a re n c y, s u s t a i n a b il i t y a n d a u t h e n t i c i t y. Improvements Stop using GM ingredients completely Show consumers Quaker Oats Company Responsibility to the environment, health and society. “ORAGANIZATION & COMMUNICATION LEADS TO EVOLUTION”
SOURCES h t t p : / / w w w. i b i s w o r l d . c o m / i n d u s t r y / d e f a u l t . a s p x ? i n d i d = 2 2 6 & p a r t n e r i d = Va l u a t i o n R e s o u r c e s h t t p : / / s m p b f f 1 . d s d . c e n s u s . g o v / T h e D a t a We b _ H Ibisworld-Industry report otReport/servlet/HotReportEngineServlet?em ailname=ec@boc&filename=mfg3.hrml&2012 h t t p : / / w w w. b a k i n g b u s i n e s s . c o m / F e a t u r e s / M a r 0 2 0 2 0 9 2 4 5 7 . Va r. N A I C S 2 0 0 2 = 3 11 2 3 0 & f o r w a r k e t i n g % 2 0 Tr e n d s / 2 0 11 / 6 / G M O - d = 2 0 1 2 0 2 0 2 0 9 2 4 5 7 . Va r. N A I C S 2 0 0 2 free%20foods%20gaining%20ground.aspx?cc k=1 US Census-2002-2007 report Bakingbusiness.com article h t t p : / / w w w. p e p s i c o . c o m / D o w n l o a d / Q 1 _ 2 0 1 2 _ h t t p : / / w w w. t r e e h u g g e r. c o m / g r e e n - f o o d / g m o - Earnings_Press_Release.pdf bans-laws-and-labels-from-around-the- world.html P e p s i C o We b s i t e - E a r n i n g R e l e a s e Tr e e h u g g e r. c o m - G M O l e g a l F u t u r e file:///Users/yevgeniyagozenpud/Desktop/Pos t- Pepsi,%20Quaker%20Sales%20Experiencing %20a%20Morning%20Slump%20%7C%20New s%20-%20Advertising%20Age.webarchiveh t t p : / / w w w. o r g a n i c a u t h o r i t y. c o m / b l o g / o r g a n i c / 3 00000-farmers-seek-legal-protection-from- monsantos-gmo-seeds/ Competitor Chart- Breakfast Cereal Chart O rg a n i c A u t h o r i t y. c o m - M o n s a n t o l a w s u i t - 3000 Farmers vs. Monsanto