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Skinny Cow - Winning @ Brands class

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The last big group presentation we gave (design and most of the slide work was mine)... I might take this down but meanwhile I\'m proud of it!

The last big group presentation we gave (design and most of the slide work was mine)... I might take this down but meanwhile I\'m proud of it!

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Skinny Cow - Winning @ Brands class Presentation Transcript

  • 1. Julie Hubert Josée Moreton Nicholas Mejia Restrepo Lakshmi Sharma Sabina Yun Tang
  • 2. Brand Re-Launch: A New Definition • Brand promise • Features, attributes, perception • Brand molecule • Brand valuation Brand Re-Launch: A Fresh Execution • Product design and packaging • Marketing plan • Metrics of success • Brand molecule • Brand valuation Brand Extension: The “Skinny Shake” • Product design and packaging • Features, attributes, perception • Target consumer • Competitive landscape • Marketing plan • Metrics of success • Brand molecule • Brand valuation
  • 3. Brand promise Features, attributes, perception Brand molecule Brand valuation
  • 4. Skinny Cow lets you lighten up your day – in calories and in mood! With dairy treats that are “rich in taste, low in fat,” Skinny Cow offers women a healthy yet delicious alternative with a cheeky personality.
  • 5. Frozen desserts Healthy For trendy, Features Attributes Perceptions health- Calorie-controlled Delicious conscious 98% fat free Fun women with a Low sugar sweet tooth Premium Rich and creamy Delicious “Tastes like the indulgence real thing” Premium quality Nutritionist Fun product endorsement Nutritious ingredients Allergen free
  • 6. Youthful Rich taste Variety of flavours Delicious Feminine Premium Healthy Fun Low calorie, fat, sugar Nutritional benefits Fruit flavours
  • 7. Youthful Fun-loving, outgoing Premium ingredients personality Small portions Delicious Feminine Premium Healthy Fun Cheeky, humourous communication style Feminine colour scheme Eye-catching Low-fat frozen dessert packaging
  • 8. Paris Hilton (UK) Condensed Weight Watchers Quik Milk Breast cancer Oprah awareness (US) Dreyer’s Nestlé Cow mascot Hot chocolate Ice cream (UK) bar Skinny Women’s Cow Health Ice cream Low-fat Magazine (AUS) cone Chocolate Ice cream Milk (US) sandwich Dean’s Dairy Mini-tubs (UK) Breyer’s Chapman
  • 9. Skinny Cow Brand Valuation - Pre-Brand Refresh Brand Valuation - Status Quo 2007 2008 2009 2010 2011 2012 2013 Discounted SC volume Litres - 1% market share) 3 681 000 3 736 215 3 792 258 3 849 142 3 906 879 3 981 000 4 040 715 Price Premium over Private Label per LT $0.2014 $0.2014 $0.2014 $0.2014 $0.2014 $0.2014 $0.2014 $741 355 $752 476 $763 763 $775 219 $786 848 $801 776 $813 802 Marketing investment $500 000 $500 000 $500 000 $500 000 $500 000 $500 000 $500 000 Premium over PL (Before taxes) $241 355 $252 476 $263 763 $275 219 $286 848 $301 776 $313 802 Premim over PL (After taxes 30%) 184 634 192 654 200 793 211 243 219 662 Discounted cash flow (7.5%) 171 753 166 709 161 631 158 179 153 007 $2 928 821 2 040 096 Brand Value: Price Premium Method $811 279 Brand Value: Discounted Cash Flow Method $2 851 374 Key Assumptions:  Market Pricing and Premium Calculations SC has 1% of total ice-cream market  Retail price Price/ml Costs of SC and PL are equal  SC Pricing 7 x 100ml $6.99 $0.0100 SC currently invests 500K/y in marketing  Breyers 6 x 100ml $6.99 $0.0117 Average store prices  Private Label 6 x 85ml $4.99 $0.0098 Discount rate 7.5%, taxes 30%  Premium over PL today ml $0.0002 Premium over PL today Litres $0.2014
  • 10. Design and packaging Timeline and budget Product line Metrics of success Distribution Brand molecule Communication Brand valuation
  • 11. New colour scheme Design & Packaging Logo revamp “Single” portions 500ml mini-tubs
  • 12. • dark chocolate • cookies 'n' cream raspberry rave • chocolate 'n' peanut • apple toffee twist butter • chocolate mint mania • strawberry shortcake • pistachio panache • mint • French vanilla bliss Mini-tubs Sandwiches Shelf Fun Fruit visibility flavours content
  • 13. Widen Availability Super- Food Gym Convenience markets services freezers stores
  • 14. Advertising, Partnerships, Online Promotions Sponsorships Community • Increased • Canadian • Influential presence nutritionists female bloggers • Sampling • Curves gyms • Social network programs “nexuses” • Women’s health (Cowmobile, issues (breast • Website workplace cancer redesign contests) awareness) • Interactive contest
  • 15. Summer • May launch (ice cream season!) 2009 • Outdoor events Budget Product development $500,000 In-store POS $100,000 Advertising $2,000,000 Promotions $500,000 Partnerships and sponsorships $500,000 Total $3,600,000
  • 16. Awareness Trial Market Share • On par with • 39.2% (up • 2.25% of US market from total ice (67% of 19.6%), cream consumer based on segment survey consumer (Litres) respondents surveys versus 32% currently) * In target age/gender group, over five years
  • 17. Weight Watchers Oprah Condensed Quik (US) Milk Canadian Paris Hilton nutritionists (UK) Dreyer’s Nestlé Women’s Cow Health mascot Magazine Hot chocolate Ice cream Skinny (UK) bar Curves Cow Ice cream gym Breast cancer Low-fat cone Chocolate awareness Ice cream Mini-tubs Milk (US) Dean’s Dairy sandwich Breyer’s Chapman
  • 18. Skinny Cow Brand Valuation - Post-Brand Refresh 2009 2010 2011 2012 2013 Discounted Brand Valuation - Brand Refresh Skinny Cow sales Litres 4 740 323 5 773 713 6 837 039 7 962 000 9 091 609 New Price Premium over Private Label per LT $1.866 $1.866 $1.866 $1.866 $1.866 $8 843 955 $10 771 937 $12 755 769 $14 854 594 $16 962 090 Marketing investment $3 600 000 $3 600 000 $3 600 000 $3 600 000 $3 600 000 Premium over PL (Before taxes) $5 243 955 $7 171 937 $9 155 769 $11 254 594 $13 362 090 Premim over PL (After taxes 30%) $3 670 769 $5 020 356 $6 409 038 $7 878 216 $9 353 463 Discounted cash flow (7.5%) 3 414 668 4 344 278 5 159 023 5 899 212 6 515 235 $124 712 837 86 869 803 Brand Value: Price Premium Method $25 332 417 Brand Value: Discounted Cash Flow Method $112 202 220 Key Assumptions:  Market Pricing and Premium Calculations Retail price Price/ml Brand relaunch will achieve +0.25  SC Pricing 7 x 100ml $6.99 $0.0100 market share of TL market Breyers 6 x 100ml $6.99 $0.0117 annually New SC Pricing 6 x 100ml $6.99 $0.0117 Private Label 6 x 85ml $4.99 $0.0098 Costs of SC and PL are equal  Premium over PL today ml $0.0002 Average store prices Premium over PL today Litres $0.2014  Premium over PL ml Brand Revamp $0.002 Discount rate 7.5%, taxes 30%  Premium over PL Litres Brand Revamp $1.866
  • 19. Products and positioning Marketing Plan Features, attributes, Metrics of Success perceptions Brand molecule Target customer Brand valuation Competitive landscape
  • 20. What Is It? • Ready-to-drink fruit flavoured milk shake What Size? • 300ml bottles • Single and 6-pack (2x3) How Much? • Premium pricing Wild berry blush • $1.99 individual Strawberry peach sass • $10.99 6-pack Mango orange medley Where To Find It? Banana tropical blast French vanilla bliss • Same distribution channels Chocolate mint mania as Skinny Cow ice cream • In grab-and-go milk beverages section
  • 21. Frozen desserts For trendy, Healthy Features Attributes Perceptions health-conscious Calorie-controlled Delicious women with a 98% fat free sweet tooth Fun Low sugar For women on Premium the go Rich and creamy Convenient Delicious “Tastes like the indulgence real thing” Premium quality Nutritionist endorsement Fun product Nutritious ingredients Allergen free Fruit- and Features milk-based shake Portable bottle
  • 22. Health conscious women (18-45) • want to treat themselves • have a sweet tooth • have a sense of humour • are concerned about their well-being • are attracted to healthy products • have a busy lifestyle
  • 23. In the Dairy case: Flavoured milks • Nestle/Hershey’s branded • chocolate milks Nutrition 24 • In the Yogurt case: Adult “bio” yogurt drinks • DanActive, Astro BioBest • smoothie Kids yogurt drinks • Yop • In the fresh juice case: Bolthouse Farms - Juices & • Smoothies
  • 24. Rebrand Extension Novelty Ice-creams Ready-to-drink Smoothies and Milkshakes * Healthiness based on calories, nutritious ingredients and sugar content per ml
  • 25. Media Point of Sale Sponsorships Promotions • TV • In-store • Run for the • “Find the advertising demos Cure Skinny Cow” contest • Women’s • Point of sale • International magazines displays Women’s Day • Interactive website and • Billboards • Tennis online viral (Montreal, Canada campaign Toronto) (women) • Summer sampling program
  • 26. Marketing Plan Objectives:  Awareness and trial  Marketing Plan Activities:  Media   TV Advertising (3 flights, specialized networks) $ 1 200 000  Magazines $ 200 000  Billboards (Montreal, Toronto) $ 200 000 Promotion   Launch Contest: Find the Skinny Cow $ 150 000  Interactive website and viral online campaign $ 150 000 In-store Activities   Demos $ 200 000  In-store POS $ 150 000 Out-of-store Activities   Sponsorships/Associations  Run for the cure  International women’s day  Tennis Canada/women  Summer sampling $250 000 TOTAL $2 500 000
  • 27. Activities SEPT OCT NOV DEC JAN FEB MARCH APRIL MAY JUNE JULY AUG PRODUCT SC Shakes Launch ADVERTISING TV advertising campaign Billboards Magazine Advertising PROMOTION Consumer Contest Web CONSUMER In-sotre POS In-Store demos Out-of-store sampling
  • 28. Market Awareness Trial Share • 40% • 20% • 1% of total (based on (based on bottled consumer consumer milk shake surveys) surveys) segment (Litres) * In target age/gender group, over five years
  • 29. Weight Watchers Oprah Condensed Quik (US) Milk Canadian Paris Hilton nutritionists (UK) Dreyer’s Nestlé Women’s Cow Health mascot Magazine Hot chocolate Ice cream Skinny (UK) bar Curves Cow Ice cream gym Breast cancer Low-fat cone Chocolate awareness Ice cream Mini-tubs Milk (US) Dean’s Dairy sandwich Skinny Breyer’s shake Chapman Women’s tennis “Find the Skinny Cow”
  • 30. Skinny Cow Brand Valuation - Post-Brand Extension Brand Valuation - Brand Extension 2009 2010 2011 2012 2013 Discounted Skinny Shake volumes LT 2 500 000 2 875 000 3 306 250 3 802 188 4 372 516 Price Premium over Private Label per LT $2.653 $2.653 $2.653 $2.653 $2.653 $6 633 333 $7 628 333 $8 772 583 $10 088 471 $11 601 741 Marketing investment $2 500 000 $2 500 000 $2 500 000 $2 500 000 $2 500 000 Premium over PL (Before taxes) $4 133 333 $5 128 333 $6 272 583 $7 588 471 $9 101 741 Premim over PL (After taxes 30%) $2 893 333 $3 589 833 $4 390 808 $5 311 930 $6 371 219 Discounted cash flow (7.5%) 2 691 473 3 106 400 3 534 428 3 977 576 4 437 928 $84 949 587 59 172 368 Brand Extension Value: Price Premium Method $17 747 804 Brand Extension Value: Discounted Cash Flow Method $76 920 172 TOTAL Brand Value: Price Premium Method $43 080 221 TOTAL Brand Value: Discounted Cash Flow Method $189 122 392 Key Assumptions:  Skinny Cow shake will achieve 1%  share of total market with growth of 0.25% annually Costs of SC and PL are equal  Average store prices  Discount rate 7.5%, taxes 30% 
  • 31. Thanks for listening!
  • 32. Nestlé product line Consumer survey results Skinny Cow Canadian distribution Canadian ice cream market US ice cream market
  • 33. Speciality Premium Regular Healthy • For kids (Dibs, • Haagen-Dazs • Nestlé • Skinny Cow Drumsticks) • Nestlé Gelato • Sorbet, frozen • Candy bar yoghurt • Real Dairy extensions • Real Dairy (Aero, Rolo, • Del Monte Mack, Smarties)
  • 34. n=55 (Canadians) Which one would you be more likely to buy, and why?  18 16 4 14 12 8 10 3 8 2 13 6 7 4 6 6 2 2 2 1 1 0 Trust Expect it Prefer Lower Lower fat Healthier brand to taste packaging calories name better Breyers Nestle Skinny Cow
  • 35. Rate the importance of the following on your purchase decision for packaged ice-cream: Do not look for Diet or Diet or Healthy Healthy choices in ice-cream 1= Not important at all 5= Very Important 3.30 3.29 Price 4.65 4.54 Taste 3.30 3.14 Brand 3.89 2.50 Healthy* 3.41 2.63 All-natural* 3.59 1.98 Low calorie* 3.57 1.88 Low fat* 3.25 1.94 Low sugar* 3.16 2.83 No artificial sweetener *Statistically significant difference between groups
  • 36. Have you heard of Skinny Cow ice cream? Response Response Frequency Count Answer Options 67.9% 38 No 12.5% 7 Yes, but I have not tried it 19.6% 11 Yes, and I have tried it What brands of packaged ice cream do you normally purchase? Check all that apply. Response Response Frequency Count Answer Options 36.4% 20 Ben & Jerry's 52.7% 29 Breyers 21.8% 12 Chapman's 3.6% 2 Del Monte 3.6% 2 Dreyer's 7.3% 4 Healthy Choice 54.5% 30 Häagen-Dazs 38.2% 21 Nestle 29.1% 16 Parlour 10.9% 6 Skinny Cow 20.0% 11 Store brand answered question 55
  • 37. Response 1 2 3 4 5 Count 6 10 14 20 6 56 Do you like the logo? (1 = Hate it , 5 = Love it) Do you feel it is an appropriate logo for diet ice- cream? 6 3 15 18 13 55 (1 = No, not at all, 5 = Yes, totally) Do you feel it is an appropriate logo for healthy ice- 9 15 13 12 6 55 cream? (1 = No, not at all, 5 = Yes, totally) Why I like/dislike the logo: “It seems like it's pushing being skinny a bit too “It's cute and much vs. being healthy” original” “I think it's an insult to overweight people. and it makes me not want to “I do like the logo. I eat ice cream” think it communicates “The logo is straight forward, but the cow is a bit a clear message: low creepy, since I'm used to seeing cute, plump cows, fat ice-cream” when they are used in advertising”
  • 38. • ONTARIO Weston CANADA Produce A&P/The Barn Buy Low Your Bamburgh Canada Independent Bruno's Safeway Grocer Dominion Federated and Zehrs Food Basics Calgary Co-op Zellers Foodtown IGA - British Fortinos Columbia Galati Market • QUEBEC Overwaitea / Fresh Save On Axep Galati Bros. Real Canadian Bonichoix Hy & Zels Superstore IGA IGA Shoppers Drug Intermarche Knechtels Mart Pharmaprix Foodland Sobeys Provigo Kwikway • ATLANTIC Sobeys Loblaws CANADA Super C Mike Dean's Maxi Loblaws Co-op Atlantic No Frills Membres Real Atlantic Price Chopper Acheteurs Superstore Pusateri's Loblaws Sobeys Sobeys Metro Super Value Super C Wal-Mart Valumart Zellers Wal-Mart • WESTERN
  • 39. Skinny Cow <1%
  • 40. Top Frozen Dessert Brands, 2007 ($ mil.) Share Weight Watchers $37.78 7.02% Nestle Drumstick 33.01 6.13 Klondike 29.17 5.42 The Skinny Cow 25.63 4.76 Private label 73.23 13.60 Other 339.50 63.07 Brands are ranked by sales at supermarkets, drug stores and mass merchandisers (excluding Wal-Mart) for the 12 weeks ended November 4, 2007. Source: Refrigerated & Frozen Foods Retailer, Dec. 2007, p. S81 from Information Resources Inc.