Crayola New Business Pitch
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Crayola New Business Pitch

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Internship Project at DDB Toronto

Internship Project at DDB Toronto

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Crayola New Business Pitch Crayola New Business Pitch Presentation Transcript

  • Wednesday, 21 August, 13
  • Wednesday, 21 August, 13
  • Diana . Carolyn . Maury Wednesday, 21 August, 13
  • Wednesday, 21 August, 13
  • INDUSTRY REVIEW Wednesday, 21 August, 13
  • REVENUE CRAYOLA IS PRIVATELY OWNED WITH $50-$80MIN SALES IN CANADA (2012) Revenue Market Size Market Share Brand Share SOURCE: INDUSTRY CANADA- CANADIAN COMPANY CAPABILITIES Wednesday, 21 August, 13
  • THE WRITING INSTRUMENTS MARKET IS $237MIN CANADA (2012) MARKET SIZE Revenue Market Size Market Share Brand Share SOURCE: PASSPORT - WRITING INSTRUMENTS IN CANADA, EUROMONITOR INTERNATIONAL Wednesday, 21 August, 13
  • MARKET SHARE IN WRITING INDUSTRY 15% 4% 9% 11% 26% 36% Newell Rubbermaid BIC Crayola Staples Pentel Others 1.COLOURING 2.MARKERS 3.PENCILS 4.PENS 5.WRITING ACCESSORIES 6.WRITING INSTRUMENTS Revenue Market Size Market Share Brand Share SOURCE: PASSPORT - WRITING INSTRUMENTS IN CANADA, EUROMONITOR INTERNATIONAL Wednesday, 21 August, 13
  • 27%9% 9% 11% 18% 26% BIC Sharpie Crayola Papermate Staples Others BRAND SHARE CRAYOLA OWNS THE COLOURING SEGMENT WITH 70%MARKET SHARE IN CANADA (2012) Revenue Market Size Market Share Brand Share SOURCE: PASSPORT - WRITING INSTRUMENTS IN CANADA, EUROMONITOR INTERNATIONAL Wednesday, 21 August, 13
  • INDUSTRY TRENDS INDIRECT EFFECTS OF TECHNOLOGY CAUTIOUS CANADIAN CONSUMERS WRITING INSTRUMENT MARKET REACHED MATURITY 1% GROWTH ($10M IN 5Y) Wednesday, 21 August, 13
  • ARTISTIC FUNCTIONAL ADULTSCHILDREN Success in this mature market is achieved by attaching additional value to the physical product Wednesday, 21 August, 13
  • ARTISTIC FUNCTIONAL ADULTSCHILDREN Success in this mature market is achieved by attaching additional value to the physical product Wednesday, 21 August, 13
  • Sharpie Roseart Prismacolor Competes on PriceCompetes on Quality $10M$56M $6M Competes on Quality Wednesday, 21 August, 13
  • BRAND COMMUNICATIONS Wednesday, 21 August, 13
  • 1960’s -70’s 1980’s 1990’s 2000’s “CRAYOLA CRAYONS, THEY WORK ON BRAINS NOT BATTERIES” “CRAYOLA DRAWS YOU CLOSER” “YOU DON’T JUST DRAW WITH THEM, YOU ROCK AND ROLL WITH THEM” “THERE’S ONLY ONE CHILDHOOD AND ONLY ONE CRAYOLA ” Wednesday, 21 August, 13
  • TODAY “CRAYOLA BELIEVES THAT WHAT IF IS THE GREATEST QUESTION IN THE WORLD” Wednesday, 21 August, 13
  • CRAYOLA Helping parents and educators raise creative...children who will grow to be inspired, original adults. POSITIONING PERSONALITY Creative, Inspirational, Original and Trusting Wednesday, 21 August, 13
  • WHY DDB? CREATIVITYWednesday, 21 August, 13
  • WHY DDB? CREATIVITYWednesday, 21 August, 13
  • BUSINESS PROBLEM Wednesday, 21 August, 13
  • BUSINESS PROBLEM THE BREAK-DOWN SOURCES: *IBIS WORLDWIDE, 2012 **STATISTICS CANADA, 2013 PROJECTED GLOBAL REVENUES FOR THE NEXT 5 YEARS* MATURITY TECHNOLOGY RECESSION K-12 Wednesday, 21 August, 13
  • BUSINESS PROBLEM LIFE SPAN AWARENESS CONSUMPTION PURCHASE Wednesday, 21 August, 13
  • BUSINESS PROBLEM LIFE SPAN AWARENESS INCREASE CONSUMPTIONCONSUMPTION Wednesday, 21 August, 13
  • BUSINESS PROBLEM LIFE SPAN AWARENESS BONUS: GREATER TOP-OF-MIND AWARENESS THROUGHOUT LIFE --> LOWER ACQUISITION COSTS Wednesday, 21 August, 13
  • DDB’S CHALLENGE Wednesday, 21 August, 13
  • HOW? BY BUILDING BRAND RELEVANCE WITH TEENS AND YOUNG ADULTS WITHOUT ALIENATING THE CURRENT TARGET (MOMS, EDUCATORS, KIDS) SALES OF CRAYOLA PRODUCTS BY INCREASING THE LTV OF CRAYOLA CONSUMERS. Wednesday, 21 August, 13
  • INSIGHTS Wednesday, 21 August, 13
  • CURRENT ATTITUDES ASSOCIATIONS TESTS 88 RESPONDENTS 504 ASSOCIATIONS Crayons Colours Childhood/Nostalgia Kids/Children Markers Fun/Play Art/Arts & Crafts Colouring/Colouring Books Grade School/PreSchool/Kindergarten Draw/Drawing/Drawings Creativity and Freedom Wax Pencil Crayons Rainbows Restaurants Paint Paper Bright/Vibrance Pictures The Crayon Box Crayola DIY Peeling Wrapper Crayons up nose School supplies/Back to School Family/Bonding Time Variety Smell of Crayons Children Art Toys Distribution Cracking/Breaking in Half Eating Crayons Construction Paper Scissors Drawing on walls Chalk Camp Write/Writing Material Pencils The logo Oil Other 0 15 30 45 60SOURCE: PRIMARY RESEARCH 88 RESPONDENTS Wednesday, 21 August, 13
  • LACK OF AWARENESS FOR OTHER PRODUCTS #1: “NO USE” BARRIERS TO BRAND RELEVANCE Other Pencils Chalk ScissorsConstruction Paper Paper Paint Pencil Crayons Markers Crayons SOURCE: PRIMARY RESEARCH 88 RESPONDENTS AGES 18-24, 2013 Wednesday, 21 August, 13
  • Drawing on walls Eating Crayons Toys Children Art School supplies/Back to School Crayons up nose Rainbows Grade School Colouring Kids/Children Childhood/Nostalgia Crayons BARRIERS TO BRAND RELEVANCE IT’S ALL IN THE PAST #2: “FOR KIDS” SOURCE: PRIMARY RESEARCH 88 RESPONDENTS AGES 18-24, 2013 Wednesday, 21 August, 13
  • WHY DID YOU STOP USING CRAYONS? 2% 3%3% 3% 4% 10% 12% 13% 17% 34% 88 RESPONDENTS 107 REASONS Moved on to markers/pencil crayons/other Other priorities/interests Lack precision School no longer required them Grew out of it messy Bad at drawing not given them anymore at restaurants/planes not cool no need MORE COMPETITORS IN THIS SPACE SOURCE: PRIMARY RESEARCH 88 RESPONDENTS AGES 18-24, 2013 Wednesday, 21 August, 13
  • STRATEGY Wednesday, 21 August, 13
  • OUR STRATEGIC SOLUTION THE FRAME OF REFERENCE EDUCATE & OFFER NEW USAGE OCCASIONS TO MAKE CRAYOLA PRODUCTS RELEVANT TO AN OLDER DEMOGRAPHIC Wednesday, 21 August, 13
  • ASSOCIATIONS TO LEVERAGE SOURCE: PRIMARY RESEARCH 88 RESPONDENTS AGES 18-24, 2013 Variety Crayola DIY Creativity & Freedom Arts & Crafts Fun/Play Childhood/Nostalgia “CREATIVITY & FREEDOM” Wednesday, 21 August, 13
  • CRAYOLA’S INNATE QUALITIES FLIPPING “NO” INTO “YES” WASHABLE AFFORDABLE LUXURY CONSISTENT QUALITY EASILY ACCESSIBLE LACK PRECISION MESSY NOT PROFESSIONAL FOR KIDS FUNCTIONAL EMOTIONAL INNATE QUALITIES Wednesday, 21 August, 13
  • IT’S OKAY TO MAKE MISTKES. CRAYOLA IS ALL ABOUT HAVING FUN AND UNLEASHING YOUR CREATIVITY. Wednesday, 21 August, 13
  • OPPORTUNITY TO CURATE & AMPLIFY CONVERSATIONS FROM THE LONG-TAIL ENTERTAINING BEAUTIFUL USEFUL PROFESSIONAL USES NOSTALGIA + POP CULTURE ACTIONABLE SOURCES: HEY WHIPPLE, SQUEEZE THIS, 2013 Wednesday, 21 August, 13
  • OUR TARGET LOVES “FIRST”-NESS* MILLENNIALS/GEN-C (15-35)** 30% OF CANADIAN POPULATION*** NOSTALGIC, CREATIVE, 47% WANT BRANDS TO PROVIDE INSPIRATION FOR THINGS TO DO, MAKE, OR BUY.* PARENTS OF THE FUTURE SOURCES: TRENDWATCHING.COM**, STATISTICS CANADA 2013***, BAZAARVOICE.COM 2013* Wednesday, 21 August, 13
  • 0 15 30 45 60 30 54 39 4 6 32 CREATIVE VS. ARTISTIC STRONGLY DISAGREE STRONGLY AGREE 0 15 30 45 60 16 23 35 15 23 21 3 STRONGLY DISAGREE STRONGLY AGREE SOURCE: PRIMARY RESEARCH 138 RESPONDENTS AGES 18-24, 2013 Wednesday, 21 August, 13
  • TACTICS + DDB FIT Wednesday, 21 August, 13
  • #1. MICROSITE ONLINE BRAND COMMUNITY EDUCATE TO ENTERTAIN & TO DISPLAY MORE USAGE OCCASIONS DRIVE SALES THROUGH BRAND ENGAGEMENT Wednesday, 21 August, 13
  • #2. SOCIAL MEDIA CAMPAIGN YOUTUBE BANNER TAKEOVERS #TBT #THROWBACKTHURSDAY BUZZFEED REWIND 63M mentions (2013) Wednesday, 21 August, 13
  • #3. EVENT SPONSORSHIP FUN GET MESSY COLOURS AGE APPROPRIATE Wednesday, 21 August, 13
  • PHASE 1 PHASE 2 INTO THE FUTURE MILLENNIALS/ GEN-C CRAYONS FUEL CURRENT TARGET BIGGER EXECUTIONS ALL CRAYOLA PRODUCTS Wednesday, 21 August, 13
  • THANK YOU Wednesday, 21 August, 13
  • APPENDIX DUAL TARGETED PRODUCTS DIY CRAFTS CREATIVE + DIY VS ARTISTIC CB ANALYSIS DDB FIT TESTED EFFECTIVENESS WHY GEN C MEET NAHHEEM Wednesday, 21 August, 13
  • CRAYOLA DIY Wednesday, 21 August, 13
  • WHY DOES THIS MATTER? REACTIVE RESPONSE PROACTIVE RESPONSE 1.TECHNOLOGY* 2.STATIONARY INDUSTRY* 3.BIRTH RATE** 4.RECESSION INCREASE SALES BY BROADENING TARGET (+ LOWER FUTURE ACQUISITION COSTS) SOURCES: *IBIS WORLDWIDE, 2012 **STATISTICS CANADA, 2013 PROJECTED GLOBAL REVENUES NEXT 5 YEARS* Wednesday, 21 August, 13
  • 0 15 30 45 60 18 32 30 10 3 5 2 30 54 39 4 6 32 CREATIVE + DIY CRAFTS VS. ARTISTIC STRONGLY DISAGREE STRONGLY AGREE 0 15 30 45 60 16 23 35 15 23 21 3 STRONGLY DISAGREE STRONGLY AGREE SOURCE: PRIMARY RESEARCH DIY 100 RESPONDENTS AGES 18-24, 2013 Wednesday, 21 August, 13
  • FINANCIAL FEASIBILITY: C/B ANALYSIS COST MIN MAX MICROSITE $100,000 $150,000 BANNER TAKEOVER AND YOUTUBE $80,000 $100,000 DIRECT MAIL PIECE AND 20 BLOGGERS FOR 3-4 WEEKS $70,000 $100,000 COLOUR RUN SPONSORSHIP $10,000 $25,000 TOTAL $260,000 $375,000 MARKET SIZE ESTIMATE TOTAL CANADIANS 34,480,000 CANADIAN INTERNET USERS (83%)* 28,618,400 MILLENNIAL INTERNET USERS IN CANADA (41% OF TOTAL)** 11,733,544 DIY-LOVING MILLENNIALS IN CANADA*** 9,386,835 TOTAL 9,386,835 SOURCE: *WORLD BANK, 2011, **EMARKETER 2010, ***PRIMARY RESEARCH Wednesday, 21 August, 13
  • FINANCIAL FEASIBILITY: C/B ANALYSIS SITUATION DIY-LOVING MILLENNIALS IN CANADA REGULAR SM USERS % REACH MAKES PURCHASE ONLINE/IN-STORE PURCHASE VALUE BENEFIT OPTIMISTIC 9,386,835 70% 20% 30% $20 $7,884,941.4 BASE 9,386,835 70% 10% 30% $20 $3,942,470.7 CONSERVATIVE 9,386,835 70% 5% 30% $20 $1,971,235.35 OPTIMISTIC 9,386,835 70% 20% 30% $10 $3,942,470.7 BASE 9,386,835 70% 10% 30% $10 $1,971,235.35 CONSERVATIVE 9,386,835 70% 5% 30% $10 $985,617.68 OPTIMISTIC 9,386,835 70% 20% 30% $5 $1,971,235.35 BASE 9,386,835 70% 10% 30% $5 $985,617.68 CONSERVATIVE 9,386,835 70% 5% 30% $5 $492,808.84 $260,000 - $375,000 SOURCES: *VISION CRITICAL, 2013, AVERAGE OF 3 SOCIAL NETWORKING SITES Wednesday, 21 August, 13
  • TESTED EFFECTIVENESS OF IDEA 0 8 15 23 30 -5-4-3-2-10 1 2 3 4 5 01 4 13 20 26 10 1000 0 8 15 23 30 1 2 3 4 5 7 11 19 24 14 6 0 10 3029 51% SOURCE: PRIMARY RESEARCH 75 RESPONDENTS AGES 18-24, 2013 Wednesday, 21 August, 13
  • BRANDS PROMOTING DIVERSE USAGE OCCASIONS TO ATTRACT NEW TARGET Wednesday, 21 August, 13
  • WHY DDB CANADA “MICHAELS HAS INVESTED $20M IN QUEBEC STORES...THE QUEBEC PUBLIC IS A VERY CREATIVE CUSTOMER IN CRAFTS” (NEWS 1130) PUSHING FOR GLOBAL EXPANSION. 2013 NEW USA WEBSITE, 2014 ROLL OUT CANADA & MEXICO SOURCES: WORLD BANK, 2013 Wednesday, 21 August, 13
  • WHY MILLENNIALS/GEN-C 82%OF CANADIAN TEENS AND YOUNG ADULTS INTERNET USERS ARE WILLING TO SHARE THEIR BRAND PREFERENCE ONLINE* 41%OF CANADIAN TEENS AND YOUNG ADULTS WRITE ONLINE POSITIVE REVIEWS** 91%OF PEOPLE HAVE GONE INTO A STORE BECAUSE OF AN ONLINE EXPERIENCE. (SOURCE: MARKETING LAND)*** SOURCES: *EDELMAN, "THE 8095 EXCHANGE: MILLENNIALS, THEIR ACTIONS SURROUNDING BRANDS, AND THE DYNAMICS OF REVERBERATION" CONDUCTED BY STRATEGYONE, OCT 14, 2010 **EMARKETER **MARKETINGLAND, 2012 Wednesday, 21 August, 13
  • MEET NAHEEM Wednesday, 21 August, 13