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Gerber Hispanic Multicultural
Marketing Plan
Prepared by: Jake Robida, Kim Bowser, Kristine Lequerique,
Olivia Wright, a...
1 Gerber Hispanic Multicultural Marketing Plan
Contents
Executive Summary....................................................
2 Gerber Hispanic Multicultural Marketing Plan
Executive Summary
Nestle and Gerber have been around a very long time and a...
3 Gerber Hispanic Multicultural Marketing Plan
in a restaurant, or at a baseball game with little or no additional prep wo...
4 Gerber Hispanic Multicultural Marketing Plan
History
Gerber and Nestle
Nestle and Gerber have been around for long enoug...
5 Gerber Hispanic Multicultural Marketing Plan
“use-by” dating system on jars, and plastic packaging. One of the more effe...
6 Gerber Hispanic Multicultural Marketing Plan
Strategic Focus
Mission
“At Nestlé, we work tirelessly to be recognized as ...
7 Gerber Hispanic Multicultural Marketing Plan
Tactic: Portray face of baby from Latino descent on label
Tactic: Depict La...
8 Gerber Hispanic Multicultural Marketing Plan
Environmental Analysis
Political
The baby food industry is an industry that...
9 Gerber Hispanic Multicultural Marketing Plan
The population of infants directly affects the baby food industry. The infa...
10 Gerber Hispanic Multicultural Marketing Plan
noting is that “this trend varied significantly across socioeconomic group...
11 Gerber Hispanic Multicultural Marketing Plan
firms that employ them. As noted in the article, “this trend has the poten...
12 Gerber Hispanic Multicultural Marketing Plan
Situation Analysis
SWOT Analysis
STRENGTHS
 Longevity of company
 Market...
13 Gerber Hispanic Multicultural Marketing Plan
competitors in this specific product line. The largest competitor is Goya ...
14 Gerber Hispanic Multicultural Marketing Plan
The website is structured in stages beginning with pregnancy to provide pr...
15 Gerber Hispanic Multicultural Marketing Plan
Secondary Research
Secondary Research
With the baby food industry being wo...
16 Gerber Hispanic Multicultural Marketing Plan
constitute a different language use; some generations prefer just Spanish ...
17 Gerber Hispanic Multicultural Marketing Plan
including sports in the new line it would insinuate that by eating Gerber ...
18 Gerber Hispanic Multicultural Marketing Plan
fulfilled the task of providing mothers with the resources to educate them...
19 Gerber Hispanic Multicultural Marketing Plan
Segmentation and Positioning Strategies
Segmentation Strategies
Businesses...
20 Gerber Hispanic Multicultural Marketing Plan
American foods. The highlighted areas of this matrix are the customers who...
21 Gerber Hispanic Multicultural Marketing Plan
From our kitchen to your kitchen, we cook with love, the best quality ingr...
22 Gerber Hispanic Multicultural Marketing Plan
Positioning Strategies
We are implementing a differentiated strategy and t...
23 Gerber Hispanic Multicultural Marketing Plan
eighty years old, they have easily demonstrated their commitment to qualit...
24 Gerber Hispanic Multicultural Marketing Plan
 Pork
 Beef
 Salsa
 Chilies
 Corn
 Beans
 Rice
 Root vegetables
 ...
25 Gerber Hispanic Multicultural Marketing Plan
As a company we want to stay competitive with our prices and have them ref...
26 Gerber Hispanic Multicultural Marketing Plan
Rico, South America, Cuba, the Dominican Republic, and other origins will ...
27 Gerber Hispanic Multicultural Marketing Plan
allow Latinos to have easier access to resources regarding their children....
28 Gerber Hispanic Multicultural Marketing Plan
associated with in the Latino community. Billboards, brochures and pamphle...
29 Gerber Hispanic Multicultural Marketing Plan
An important aspect of our promotional campaign will be to educate Hispani...
30 Gerber Hispanic Multicultural Marketing Plan
Evaluation and Control
As a group we have many goals for the launch of our...
31 Gerber Hispanic Multicultural Marketing Plan
information on people who have recently purchased our Latino baby food lin...
32 Gerber Hispanic Multicultural Marketing Plan
Bibliography
Beech-Nut; Goya. (2013). Beech-Nut. Retrieved September 23, 2...
33 Gerber Hispanic Multicultural Marketing Plan
Nolasco, S. (2013, November 19). Parents of Gerbers First Latina Baby Refl...
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Gerber plan

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Our team for my multicultural marketing class was asked to choose a company with a lack of diverse appeal in their product line and their marketing. We chose Gerber and opted to create a baby food line catered to the Hispanic community. As a team, we developed a marketing plan that proposed to include more depth in the cuisine choices that were more conducive to the Latino heritage.

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Transcript of "Gerber plan"

  1. 1. 0 Gerber Hispanic Multicultural Marketing Plan Prepared by: Jake Robida, Kim Bowser, Kristine Lequerique, Olivia Wright, and Taylor Pickering 12/4/2013 Gerber Product Company owned by Nestle Prepared for: Dr. Sally Baalbaki
  2. 2. 1 Gerber Hispanic Multicultural Marketing Plan Contents Executive Summary...................................................................................................................... 2 History............................................................................................................................................ 4 Gerber and Nestle.....................................................................................................................................4 Products....................................................................................................................................................4 Strategic Focus .............................................................................................................................. 6 Mission......................................................................................................................................................6 Gerber Goals, Objectives, and Tactics ......................................................................................................6 Environmental Analysis ............................................................................................................... 8 Political......................................................................................................................................................8 Economic...................................................................................................................................................8 Sociological ...............................................................................................................................................9 Technological ..........................................................................................................................................10 Situation Analysis........................................................................................................................ 12 SWOT Analysis.........................................................................................................................................12 Competitor Analysis................................................................................................................................12 Customer Analysis...................................................................................................................................13 Secondary Research.................................................................................................................... 15 Secondary Research................................................................................................................................15 Segmentation and Positioning Strategies.................................................................................. 19 Segmentation Strategies.........................................................................................................................19 Table 1- Target Matrix Table...................................................................................................................20 Figure 1- Perception Map Figure ............................................................................................................20 Positioning Strategies .............................................................................................................................22 Multicultural Marketing Program............................................................................................ 22 Product Strategy .....................................................................................................................................22 Price Strategy..........................................................................................................................................24 Distribution Strategy...............................................................................................................................25 Promotion Strategy.................................................................................................................................26 Evaluation and Control.............................................................................................................. 30 Bibliography................................................................................................................................ 32
  3. 3. 2 Gerber Hispanic Multicultural Marketing Plan Executive Summary Nestle and Gerber have been around a very long time and are staples in many households. Gerber has more than 200 products in over 80 countries globally. The Gerber Start Healthy, Stay Healthy Nutrition System was created when Gerber joined the Nestle Family to take advantage of the research, knowledge, and expertise of the both companies. Gerber offers a unique stage- based system with products, and feeding nutrition guidance to support healthy growth and development and encourage healthy eating from birth to four years old (Nestle, 2013). Gerber previously launched a line targeting Hispanics called “Latina Recetas,” literally translated as “Latin Recipes.” Unfortunately, Gerber learned the hard way that the targeting was all wrong to gain the Latin communities following and loyalty. We will explore improved ways to target Hispanics for our baby food line to ultimately gain this market by catering to their wants and needs. Many environmental factors are at work in the baby food industry. The industry is subject to FDA regulations in the United States and these regulations will continue to change as consumers and government decide what is important for the health of themselves and the Nation. The FDA helps ensure that the products given to our children are healthy and safe to consume. Economic downtimes may entice people to make their baby food at home to cut costs. These troubling times have also reduced birth rates because finances are currently so tight. The economy has experienced lower retirement rates and greater unemployment, outsourcing, and poverty rates creating an unstable atmosphere to bring children into. Gerber is very active in research and development of technology and innovation. Technological advancements such as embedded sensors and safety measures allow manufacturers like us to ensure the production of healthy and safe products to take lead amongst our competitors and be respected by the community. There are few strong competitors in the baby food industry today, including mainly Beech-Nut, who has partnered with Goya, a trusted brand in the Hispanic community. Another competitor, Stonyfield, offers organic yogurts and milks. Earth’s Best also offers organic baby food and is partnered with Sesame Street, allowing for increased awareness and brand visibility. Gerber’s target is busy parents who want the best for their children. Feeding their babies the well-known, trusted brand Gerber is a healthy and convenient option. We will show the Hispanic parents they can easily pack Gerber’s products in a diaper bag and feed their children on the go,
  4. 4. 3 Gerber Hispanic Multicultural Marketing Plan in a restaurant, or at a baseball game with little or no additional prep work needed. Their children are also getting all the nutrition they need to grow healthy and happy. Multicultural marketing requires knowing the target consumer. It is important to learn the nuances in targeting different multicultural groups and the Hispanic community has a few differences that need to be taken into account. Family is highly important in the Hispanic household, both immediate family and extended family. The Hispanic population is the fastest growing population in the United States (Rodriguez, 2013). Language is also an important factor to consider. Different generations require different language approaches. For example, although US born Hispanics prefer to be advertised to in English, they are not opposed to things that are advertised in Spanish. Gerber will focus on maintaining their original image and products with integrating Latino traditions values and language. It is important to Hispanic mothers to not lose touch with their culture and culinary roots since it is so evident in their culture (Sangha, 2013). Latino mothers prefer to be targeted similarly to the general population, Gerber will incorporate Hispanic and Spanish aspects into the product labeling with extreme caution to avoid segregating the Latino North American target market from the overall market. Educating Hispanic mothers on the importance of healthy foods for their babies is a key goal for Gerber. Spanish website options and telephone lines would succeed in bridging the widening gap between Gerber and Spanish speaking Hispanic mothers with the desire to provide their children with the best possible advantages. We will use a differentiated strategy and will be targeting two segments. One segment will target Hispanic mothers that require convenient, healthy options for on-the-go days. The other segment will position Gerber as the baby food that helps incorporate love and health into its food to create a balanced start to your baby’s life that will result in a long healthy life, all while introducing North American and Hispanic flavors to the baby. The new Hispanic flavors like, beef, pork, rice, and plantains will invite new consumers to join the rooted Gerber Family. Capitalizing on the Hispanic market and meeting their wants and needs will allow Gerber to grow more culturally diverse within our ever growing US population.
  5. 5. 4 Gerber Hispanic Multicultural Marketing Plan History Gerber and Nestle Nestle and Gerber have been around for long enough to be considered staples in the industry of supporting healthy growth and development of infants and toddlers. Nestle was first introduced by a pharmacist named Henri Nestle who investigated the often encountered predicament of a child unable to breastfeed. He developed a concoction for this baby to receive nourishment which led to the invention of the world’s first infant food and eventually the first infant food company; Farine Lactee Henri Nestle (Nestle, 2013). Gerber was founded in 1927 in Fremont, Michigan, by Daniel Frank Gerber and Dorothy Gerber, owners of the Fremont Canning Company, which produced canned fruits and vegetables. The couple began making hand strained solid foods in their own kitchen for their 7-month-old- daughter Sally. Eventually, Daniel and Dorothy began straining fruits and vegetables at their canning business, and many of the workers of the plant started to request foods for their own babies. Recognizing the potential business opportunity, Gerber began producing baby foods. By 1928, there were five products for sale; strained peas, prunes, carrots and spinach, and beef vegetable soup. After only six months, the foods were distributed nationwide (Nestle, 2013). The merger between Gerber Products Company and Sandoz Laboratories occurred in 1994, and two years later, Sandoz merged with CIBA-Geigy to form Novartis one of the largest pharmaceutical companies in the world. In 2007, Novartis sold Gerber to Nestle, based in Switzerland, for $5.5 billion. The large packaged food company was producing the Good Start infant formula in the U.S. and baby food in Europe when it acquired Gerber. Offering more than 200 products in over 80 countries and labeling in 16 languages, the Gerber brand has evolved to be a baby food giant globally, controlling 80 percent of the market in the United States (Nestle, 2013). Products Gerber attempted unsuccessfully to diversify themselves throughout the years by acquiring a freight carrier, a furniture manufacturer, toy lines, daycare lines, and baby accessories as extensions to the original baby food products they offer. However, they have succeeded in developments such as the tamper-evident packaging with the safety button caps, the
  6. 6. 5 Gerber Hispanic Multicultural Marketing Plan “use-by” dating system on jars, and plastic packaging. One of the more effective extensions is the line of life insurance products aimed at young families developed in 1967. Today, the Gerber Life Insurance Company is one of the largest purveyors of direct-marketed life insurance in the United States with more than two million policies and over $650 million in assets. They have also established a consumer help line to answer parent’s questions about baby care and nutrition (Nestle, 2013). Nestle and Gerber have committed to improving baby and child nutrition through innovation, backed by solid research. In 2002, they sponsored Feeding Infants and Toddlers Study (FITS), a groundbreaking study evaluating the eating patterns and nutrient intakes of 3,000 infants and toddlers. The study found may nutrition gaps in toddler’s diets and Gerber used the study findings to develop new products to fill these needs (Nestle, 2013). The Start Healthy, Stay Healthy Nutrition System was created when Gerber joined the Nestle Family to take advantage of the research, knowledge, and expertise of the both companies. This is an innovative approach to help choose the right nutrition for children based on their individual stage of development. Extensive product lines have been created, catering to a variety of demands including; Good Start, NatureSelect, Organic, and Graduates. Only Gerber offers a unique stage-based system with products, and feeding nutrition guidance to support healthy growth and development and encourage healthy eating from birth to four years old (Nestle, 2013).
  7. 7. 6 Gerber Hispanic Multicultural Marketing Plan Strategic Focus Mission “At Nestlé, we work tirelessly to be recognized as that trusted partner among parents and health care professionals in fostering healthy growth and development, and establishing healthy eating habits for children from birth to preschool” (Nestle, 2013). With the exponential population growth occurring in our nation being majority Latino, our desire is to capitalizes on this market by providing infant food options tailored to their wants and needs. Our strategy is to demonstrate that Gerber brings to the Latino community something that they cannot give their babies themselves, a scientific and research based baby food line rich in adequate amounts of several important nutrients that ultimately cater to the tastes and preferences that they are partial to. Maintaining Gerber’s Start Healthy, Stay Healthy Nutrition System partnered with the stage-based system, our new product types will be developed to target the till now neglected Latino communities in the United States. With Gerber’s successful presence in 80 countries they have proven their abilities to adapt current products to the culinary preferences many cultures desires. Now we will strive to integrate this strategy in our own nation. Babies tend to be categorized together as a whole, but with the launch of our new Gerber Latino line, we yearn to recognize and highlight the differences that individual cultures values when it comes to their children. Gerber Goals, Objectives, and Tactics Goal 1: Create Latino baby food line. Objective: Conduct market research to identify traditional Latino preferences Tactic: Identify frequently consumed traditional, ethnic foods Tactic: Introduce flavors, herbs, and spices used in traditional cooking Objective: Gain consumer input and recommendations Tactic: Collect secondary data on preferences in baby foods of Latinos Goal 2: Design product packaging for Latino line. Objective: Integrate visually appealing aesthetics Tactic: Use colors representative of Latino heritage
  8. 8. 7 Gerber Hispanic Multicultural Marketing Plan Tactic: Portray face of baby from Latino descent on label Tactic: Depict Latino infant engaging in intellectual or athletic activities on label Objective: Appropriate lingual translations Tactic: Appeal to multiple Latino dialects and heritages Goal 3: Gain Latino market share. Objective: Generate marketing campaign for Latino line Tactic: Post billboards outside of hospitals with heavy concentration of Latinos Tactic: Educate Latinos on new product concept with store and hospital brochures Objective: Increase awareness of Latino line through enacting promotional strategies Objective: Present promotional incentives Tactic: Direct mail, coupons and pop displays Goal 4: Construct brand identity that Latino market can support. Objective: Host promotional events within the Latino community Tactic: Involvement in young children events Objective: Sponsor Latino children oriented causes to promote social responsibility Tactic: Engage in cause related marketing Tactic: Align with nonprofit organizations
  9. 9. 8 Gerber Hispanic Multicultural Marketing Plan Environmental Analysis Political The baby food industry is an industry that is regulated by the FDA. The baby food industry is covered specifically under section 412 of the Federal Food, Drug, and Cosmetic Act. Through this act there are many different requirements that the baby food industry is supposed to abide by. There is currently a proposed rule in relation to the regulation of labeling and the addition of minimum and maximum levels of selenium (Registar, 2013). The FDA wants to have this added to the labeling. This was proposed in April of 2013.Through this proposed act they are propositioning that there is a minimum of 2.0 μg selenium/100 kcal for selenium and a 7.0 μg selenium/100 kcal as the maximum amount in infant formulas. Some of the regulations that are required by the FDA are that there is to be a list of every nutrient added and the respective weight. Companies have to have the results of quantitative tests to identify expiration date or shelf life. All records must be kept in regards to production and distribution, in case there are any discrepancies. The FDA also regulates that for any tests that are done on the food, all records related are to be kept. In July of 2013 there was a final act in regards to Indirect Food Additives: Adhesives and Components of Coatings. The Food and Drug Administration (FDA or we) is amending the food additive regulations to no longer provide for the use of Bisphenol A (BPA)-based epoxy resins as coatings in packaging for infant formula because these uses have been abandoned (GPO, 2013). Economic The current prices points for the baby food industry ranges from $4.32 for Gerber, to $3.00 for a 6 pack of Beech-Nut. These prices are higher compared to the past. From 2000 to 2008 the average price of a 16 oz. jar of baby food was around $2.00. The highest during that time was $2.15 and the lowest being $2.02. Gerber’s price has fluctuated from 2000 to 2008, the lowest being $2.18 and the highest being $2.30. Beech-Nut, a competitor, had the highest price of $1.93 and the lowest price of $1.63 from 2000 to 2008. Between 2000 and 2008, Gerber increased their market share from 71-72% to 73-80%. Beech-Nut’s market share decreased from 13% to 11-12%. Nature’s Goodness, declined from 13% market share to a mere 2%. Sales including baby yogurt only changed around 1% each year from 2000-2008 (Economics, 2009).
  10. 10. 9 Gerber Hispanic Multicultural Marketing Plan The population of infants directly affects the baby food industry. The infant population has increased by 9% from 2000-2008. Currently birth rates have been dropping for the past 5 years. About 22% of 18-34 year olds have said they have delayed having a baby due to economic conditions. Part of the reason for people having delayed having children is because 36% of people from 18-31 still live with their parents. In 2007 there was an average 69 births per 1000 women, as of 2012 there are only 63 births per 1000 women. The main decline in the birth rate is from women aging from 15 to 40, women over the age of 40 have had a 6% increase. There is no direct link between birth rates and the economy, only assumptions (Kurtz, 2013). The median income for families with children varies from state to state within the United States. However the average in 2011 was $58,000. This has gone down since 2008 where the average was $60,900. These are all families that have children under the age of 18 and children who still live in the household. According to the census 6.4% of the population have children under 5 who are living in their households (Census, 2013). Sociological Three sociological trends are noted including the increased investment in cultural districts, the lack of available jobs in the US, and the trend for workers to delay their retirement. First we look at cultural districts. According to Noonan, cultural districts are areas in cities and towns that are usually formally recognized and have high concentrations of cultural activities and institutions (2013). Observations have been noted that these areas have experienced an increase in attention and investment in the US with “significant positive effects of district formation on property values, employment, and income” (Noonan, 2013). As a contrast to the increased employment in these areas though, is the reality that jobs are generally harder to find these days. It is no secret that many companies are outsourcing their manufacturing, service, and other functions to nations other that the United States. It has long been a topic of hot debate. These lost jobs often lead to mass unemployment and furthering the levels of poverty in the US. As noted by Mark Condon, “Jobs may be the biggest factor confronting our country today” (2012). Furthering the issue of unemployment, there is also a trend to delay retirement. Levanon and Cheng have written that delaying when you retire is “one of the main trends in the labor market” (2011). In 2011, more than 20% of workers were above age 55 compared to 12% in the mid-1990s (Levanon & Cheng, 2011). An important point that is certainly worth
  11. 11. 10 Gerber Hispanic Multicultural Marketing Plan noting is that “this trend varied significantly across socioeconomic groups, industries, and occupations” (Levanon & Cheng, 2011). Blacks are more likely to retire (vs. delaying) than whites, and being Hispanic has little impact on the decision to retire. Playing a significant role, though, is the individual’s family structure. Also interesting for this trend is that “a higher level of education is correlated with a lower rate of retirement” (Levanon & Cheng, 2011). Geographic location of the individuals does not play a part in retirement decisions, while the industry the individual works in seems to have an effect on the decision whether or not to retire (Levanon & Cheng, 2011). In addition to sociological trends, technological considerations also need to be made. Technological As always, technology is constantly evolving. There are a plethora of fronts to consider when evaluating which trends are worth our attention and which are not. Some of the most notable are considered here. An article by Bughin, Chui and Manyika addresses ten technology trends worth paying attention to, however not all of them are relevant for the purposes of this result (2010). The first several that are listed though can be generally grouped into web-based communication and collaboration (Bughin, Chui, & Manyika, 2010). Including “communities of Web participants” for product and service development, marketing and support, “nonemployees [offering] their expertise in novel ways”, and “improved efficiency and effectiveness of knowledge workers” due to collaboration technologies, it is clear that the internet and the communications capabilities built in will only continue grow in importance (Bughin, Chui, & Manyika, 2010). If properly harnessed, these technologies may provide extreme power to companies of all types and sizes. Beyond connecting people with communications, technology is also providing new ways for the everyday hardware we use to be connected as well. Physical objects that can “absorb and transmit” information are becoming more and more common everyday as they are “embedded with sensors, actuators and communications capabilities” (Bughin, Chui, & Manyika, 2010). An important aspect to realize from all of this interconnectedness though is that the amount of data being transmitted and stored is growing practically exponentially. While intimidating, this data, if used intuitively and creatively, can result in extreme benefits to the
  12. 12. 11 Gerber Hispanic Multicultural Marketing Plan firms that employ them. As noted in the article, “this trend has the potential to drive a radical transformation in research, innovation, and marketing” (Chain Drug Review, 2011). Typically, companies have viewed their products as simply that, products. However, there is a trend toward “products” being offered as services instead. For instance a software package has typically been considered a product, but companies like Google have shown that offering an email program as a service instead of as a product may present new opportunities not seen before (Bughin, Chui, & Manyika, 2010). The same can also be seen with physical products such as bicycle or car sharing systems which are a service, not a product. This idea of offering a product as a service has given way to the “multisided business model” (Bughin, Chui, & Manyika, 2010). As mentioned in the last paragraph, Google is providing services to its customers even though it is generating its revenues from third party advertisers. This multisided business model is a trend that should not be expected to go away. Many of the world’s top companies currently have similar systems in place. While these trends have mostly focused on the business side of the coin, the consumer also needs to be considered, especially with regard to how they use technology. Consumers are constantly taking their technology with them. They are becoming increasingly savvy with their devices and as a result, “time-starved consumers [can] go online for information in minutes rather than spending an hour” (Chain Drug Review, 2011). Marketers must be aware of this growth in tech-savvy consumer bases and if they are careful, they “will be well positioned to satisfy today’s smarter consumer” (Chain Drug Review, 2011). It is important to recognize that the technology in the customer’s pocket is often the best way for a company to directly engage with the customer and therefore presents an opportunity worth considering heavily. Overall, technological trends are extremely important to marketers in all businesses today. These trends will continue to grow in importance and businesses need to be aware of the trends with regard to all areas of the company, the customer, and even the external environment. Companies that are able to stay on the leading edge will likely experience continued success.
  13. 13. 12 Gerber Hispanic Multicultural Marketing Plan Situation Analysis SWOT Analysis STRENGTHS  Longevity of company  Market share in US  Gerber baby campaign and multicultural faces  Brand recognition  Focus on healthy and organic foods  Market to multiple cultural identities  Recognize traditional tastes  Adapting to technologies by research and development  Product, concept, and packaging innovations  Gerber Life Grow-Up Plan  Start Healthy, Stay Healthy  Call Center  Complete line of baby food  Integrated marketing  Kosher and Organic Lines WEAKNESSES  Not extremely competitive internationally  Don’t offer wide range of flavors for multicultural consumers  Not successfully appealing to growing Latino community  Prepared baby foods, opposed to homemade  Available information not culture specific  Website lacks multicultural targeting  Lack of pregnancy products  No allergy specific foods  Little to no bilingual resources OPPORTUNITIES  North American parents consume 49 dozen jars per birth; Japanese 5 dozen, Taiwanese 4 dozen, Polish 1 dozen  Baby food myths that babies should only eat bland foods are being discovered  Adapting to technologies  Research and development  Market with babies engaging in Latino activities  Additional products, bottles, pacifiers, dishes, toys, clothing  Increased concentration in market share  Allergy specific/ Cultural specific lines THREATS  Competitions and Substitutes  Goya/ Beech-Nut  Earth’s Best  Heinz  Nature’s Goodness  Stonyfield  Homemade foods  Private labels  Potential mergers  Increased prices, decreased content  Latinos tend to home cook  Decreased economy/ birth rates Competitor Analysis Until recently baby food did not offer a wide array of flavors and options. The ethnic baby food market is just now emerging globally (Sangha, 2013). There are currently few
  14. 14. 13 Gerber Hispanic Multicultural Marketing Plan competitors in this specific product line. The largest competitor is Goya in partnership with Beech-Nut. Beech-Nut has been around since 1931. Goya started as a specialty distributor of Hispanic products in 1936. They have recently joined in a partnership to create Beech-Nut Goya and started to offer baby food that provides, “Authentic Hispanic flavors made especially for your baby” (Beech-Nut; Goya, 2013). They produce a product line made with all natural ingredients, and they’re offering new flavors such as Guava and Mango (Beech-Nut; Goya, 2013). Their website offers access in both English and Spanish for convenience to their market. Goya spends 60% of its marketing budget on targeting the U.S. Hispanic market and there marketing is all handled by one Hispanic operated agency (Wentz, 2013). Earth’s Best is a large producer of organic baby food. They were originally founded in 1985 and they are the first and only company to currently have a full line of organic baby food (Earth's Best, 2012). The Hain Celestial Group owns Earth’s Best that is headquartered in New York and is a leader in natural and organic food and products in the U.S. and Europe (The Hain Celestial Group, 2013). They have partnered with Sesame Street on an initiative to promote “Healthy Habits for Life” (Earth's Best, 2012). Stonyfield is another baby food company that offers organic options for babies (Stonyfield, 2011). They have been producing baby food since 1983. They are a US company that offers yogurts and drinkable yogurts and milks; they do not have other baby food options like Gerber and Beech-Nut Goya (Stonyfield, 2011). Customer Analysis Gerber’s “Start Healthy, Stay Healthy” tagline invites parents to enjoy all the benefits Gerber offers from birth to preschool-aged children (Nestle, 2013). Their website targets all ethnicities by featuring babies and children of different skin colors. Through Gerber’s website they are targeting English-speaking, literate people who are mainly women between ages roughly 20-35 that have internet access. The people that will use the website will be new parents, who do not have experience with baby nutrition and are seeking information on their products. Since you cannot purchase the products direct from their website, they are offering information on nutrition, development milestones, coupons, and the exhaustive list of the products tailored to their child’s age.
  15. 15. 14 Gerber Hispanic Multicultural Marketing Plan The website is structured in stages beginning with pregnancy to provide pregnant mothers advice on nutrition for mother and baby, tips on breastfeeding, and expectations throughout the pregnancy. This introduction is aimed at educating parents and building brand loyalty that will remain throughout their child’s growth. Gerber uses “Start Healthy, Stay Healthy” and “Gerber Generation” taglines on their website and in commercials to target new parents and their lack of knowledge of their baby’s nutritional needs from birth (TheNathanblast). These taglines illustrate the point that ensuring proper nutrition from a young age will ensure your child a healthy, happy future with the help of their complete line of products. This appeals to new parents because they are unsure of the child’s complete nutritional needs and are scared for the future health and wellness of their child. They want to be certain they provide their child every possible health advantage and Gerber offers that advantage. Gerber is also targeting busy parents because their products are ready-to-serve or require little preparation. Parents can easily pack the products in a diaper bag and feed the child on the go, in a restaurant, or at a baseball game with little or no additional prep work needed. The convenience and peace of mind that comes in knowing that their child is getting all the nutrition they need in Gerber’s trusted products fulfills parents’ emotional desire to support their child.
  16. 16. 15 Gerber Hispanic Multicultural Marketing Plan Secondary Research Secondary Research With the baby food industry being worth nearly $40 billion and growing, the aim to target Latinos is ideal due to their growth in North America. The Hispanic population is younger than the general population, is more family focused, and they account for one fourth of the births in the United States (Wentz, 2013). Having larger families on average than non-Hispanics families, Latinos purchase 15% more baby food than other races. Their wealth and disposable income has also skyrocketed and are expected to soon have immense purchasing power (Sangha, 2013). Studies have been conducted resulting that two thirds of the Hispanic population are not satisfied with their baby food options due to their lack of traditional ethnic offerings. Focusing on the Latino North American subculture, moving forward the goal is to approach this market delicately to ensure gaining their respect by not altering the current strategy completely but rather only slightly modifying the product in respects to aspects such as flavors. The three things to consider when targeting Hispanics are family, language and religion. Family is one of the biggest factors when it comes to targeting the Hispanic population. Most Hispanic households are a combination of immediate and extended family (Mueller, 2008). Part of Gerber’s image includes the family; they show this through their website and their ad campaigns. Although Gerber does currently advertise a bit in regards to including the whole family, it would be advantageous for them to include family more since it is so important to them. Family is so involved in all aspects of the Hispanic culture; it would be a mistake to not include them. The general Hispanic family household holds the mother responsible for the children and household chores, making it ideal to target the mother since she is most likely to be buying the food for her children. The Hispanic population is one of the fastest growing populations in the United States, which is why this is our target market. There is an estimated 53 million Hispanics within the United States. The United States also is the 2nd largest country of Hispanics (Rodriguez, 2013). When looking at how to target the Hispanic population we have to be mindful of the language. With many different generations coming into the United States when looking at the packaging and how we will position ourselves we have to think about language. Depending on what generation we are targeting, changes how we would market to them. The different generations
  17. 17. 16 Gerber Hispanic Multicultural Marketing Plan constitute a different language use; some generations prefer just Spanish while others prefer both Spanish and English. Usually those who are just immigrating into the United States prefer to be advertised to in Spanish. Spanish speaks more to the emotional aspect of a Hispanic person as opposed to English. Although US born Hispanics prefer to be advertised in English they are not opposed to things that are advertised in Spanish. Gerber and Nestle have previously attempted to breach this market roughly eight years ago with a line called “Recetas Latinas” featuring products such as ham and papaya sauce (Sangha, 2013). The acceptance from the Hispanic community was less than expected. The consensus was that Latina mothers didn’t need to be approached any differently than any other consumer but rather preferred to be provided options that include their cultural foods with wide eclectic flavors. Several sources indicated that the line should not have focused on ethnicity, but rather as their general campaign does focus on the consumer as a parent. Gerber has attempted to address these desires of the Latina mother by introducing such foods as guava and mango to satisfy these needs, but have much more room for growth in these lines (Sangha, 2013). English would be the language used when Gerber markets towards Hispanics. As it was pointed out earlier when Gerber came out with “Recetas Latinas” the response was not what Gerber had hoped for. It has also been shown that US born Hispanics prefer it when they are advertised to in English, if they are created properly and not offensive. Part of the reason “Recetas Latinas” was not accepted was because of the Spanish language used on the label. It is also very important to not stereotype when advertising and trying to appeal to Hispanics, often ideas are misconstrued and are inaccurate assumptions of the culture (Rodriguez, 2013). The previous line that Gerber released did have some stereotypes associated with it, such as assuming that Spanish would be the proper language to use. When targeting the Hispanic population we must take the key values of their culture into consideration. While targeting this sensitive Hispanic culture Gerber will focus on maintaining their original image and products with integrating Latino traditions values and language. Targeting traditions will include traditional Hispanic dishes, foods, spices, flavors, and packaging aspects. An interesting approach to values will revolve around integrating family and activities such as Hispanic influenced sports and music. Music and sports also play a large role in the Hispanic culture. A study showed that 73% of Hispanics enjoyed exercising or playing sports (Rodriguez, 2013). This statistic shows that it would be a good idea to include sports into the Gerber line. By
  18. 18. 17 Gerber Hispanic Multicultural Marketing Plan including sports in the new line it would insinuate that by eating Gerber your child will benefit by becoming healthy strong to play sports, and intelligent to enjoy the arts. It is important to these mothers to not lose touch with their culture and culinary roots since it is so evident in their culture. They tend to hold highly the value of making everything homemade from scratch to ensure healthy traditional baby foods and desire this in their baby food selections. Regarding healthy baby foods, it is important that their foods offer all natural ingredients and no artificial colors, flavors or preservatives. There is an apparent fear in these mothers that they are going to lose such values as their tradition and language (Sangha, 2013). It is important to these mothers too have foods that are indigenous to the Hispanic cultures accessible at a grocery store for their children. Where mango and papaya are not readily available, Gerber has the opportunity to capitalize on these foods and flavors and mass produce them making them easily accessible for mothers. To cater to these worries and past failures in this market, Gerber needs to subtlety steer away from distinct packaging or giving the foods a fresh name. Rather they will have to work to balance their marketing plan to gain the respect and loyalty of the Latino North American mothers of the United States. Relating to their culture, since Latino mothers prefer to be targeted similarly to the general population, Gerber will incorporate Hispanic and Spanish aspects into the product labeling with extreme caution so not to segregate the Latino North American target market from the overall market. In late 2012 it was announced that for the first time the Gerber baby would be a Latina. They found this baby via a Facebook competition and she will be seen in ad placements in 2013 (Nolasco, 2013). This is no doubt an attempt to target this market and raise awareness of the brand to Hispanic families. Gerber is striving to evolve an image around what would be deemed socially acceptable to the Hispanic community from what is in the product to what is on the packaging. Educating Hispanic mothers on the importance of healthy foods for their babies is a key goal for Gerber. They have strived to incorporate many tools for mothers to use on their website, links, studies and phone lines loaded with a plethora of materials. The information is open and available to the public, but not directly targeted to the Hispanic consumer. Spanish website options and telephone lines would succeed in bridging the widening gap between Gerber and Spanish speaking Hispanic mothers with the desire to provide their children with the best possible advantages. There is a demand for this outlet that has been overlooked. Gerber has
  19. 19. 18 Gerber Hispanic Multicultural Marketing Plan fulfilled the task of providing mothers with the resources to educate themselves on how to provide their children with healthy eating habits, but has failed to make this information widely accessible to ethnic cultures. It has become a general consensus that mothers tend to introduce items to their children that they are interested in in their adult life such as their favorite foods, activities, and language. Gerber will seek to include these aspects in and on their product to gain the attention of these mothers. Focusing on the Latino mother’s desires will better help Gerber to capture their attention and become a staple in the Hispanic baby food industry. The new product lines will have characteristics that will lean towards the Hispanic consumer while being mindful of their desire to be generalized with the mainstream United States consumer.
  20. 20. 19 Gerber Hispanic Multicultural Marketing Plan Segmentation and Positioning Strategies Segmentation Strategies Businesses and consumers alike have several options for purchasing baby food. Among those options are choices like made-from-scratch or homemade goods, grocery store purchases, and obtaining products in bulk from distributors or manufacturers. Gerber has been a mainstay in the baby food market for some time, and currently commands the highest percent market share. Despite that fact, there is still room for Gerber to grow. Baby food is obtained a few different ways. Some parents make the baby food at home by pureeing it, while others purchase the finished product from grocery stores. This provides an opportunity for Gerber to sway some of those parents to the convenience of purchasing packaged, easy-to-prepare foods that can also be healthy for their children. Among the groups who have the most potential for market growth are Hispanic Americans. Of all United States births, the Hispanic population accounts for one-fourth of them making this group a strong candidate for targeting of baby products (Wentz, 2013). Additionally, according to the US Census Bureau, nearly three-quarters of Hispanic family households have income of $25,000 or more, with 42% reporting $50,000 or more in total family income. Other evidence has also provided that Hispanics tend to be a health-conscious, family-focused group in which the mother is typically the primary caretaker for the family (Evercare, 2008). Because Gerber is already a highly recognized baby food provider, and they had a relatively illustrious attempt at targeting this group in the past, there may be further opportunity in this segment. When targeting the Hispanic market there are many different considerations to be made. For instance, Hispanics prefer to be marketed to using traditional marketing methods rather than having campaigns adapted for them. Despite this however, they also tend to have a strong desire to maintain a connection with their cultural heritage (Wentz, 2013). Characteristics like these will certainly make the segment more challenging to market to, but if done tactfully, Gerber stands to benefit from the market share they will obtain. In order to determine who in the Hispanic market would be best to target, a matrix is provided demonstrating the type of customer and how much time they spend preparing homemade culturally-relevant baby foods versus how much time they spend preparing North
  21. 21. 20 Gerber Hispanic Multicultural Marketing Plan American foods. The highlighted areas of this matrix are the customers whom it is recommended that Gerber tailor a marketing campaign toward. Table 1- Target Matrix Table Finally, the segmentation strategy recommendation for Gerber will be one that is differentiated. This type of strategy is due to the incorporation of traditional Hispanic type foods with the North American type foods of which Gerber already has the expertise to produce. Gerber’s existing business operations will enable them to provide an expanded offering of healthy, quick-to-prepare meals for Hispanics to provide for their babies. This strategy will likely involve a moderate push to educate the Hispanic consumer, especially new mothers, about the importance of healthy, well-balanced meals for growing babies, and the positive impact this type of diet can have on their children’s future. Figure 1- Perception Map Figure Elected Target Segment (Average daily % of time spent cooking homemade cultural food for baby) Low Medium High (Average daily % of time spent preparing North American foods) High I want my kids to be Americanized I want my kids to carry on some of our heritage in their North American life I want my kids to have the best of North America and our heritage together Medium We want to adapt to the North American culture most days I cook both types of meals equally I want my kids to mold North American life around our heritage Low I cook what is convenient in the moment Cooks mostly Hispanic foods to maintain tradition but sometimes it’s easier/faster to fix North American food. My kids should have strong dedication to our heritage
  22. 22. 21 Gerber Hispanic Multicultural Marketing Plan From our kitchen to your kitchen, we cook with love, the best quality ingredients, and the ingredients you cook with in your kitchen for your baby at the family table. We will position ourselves to the second segment as a matter of convenience for the “Cooks mostly Hispanic foods to maintain tradition but sometimes it’s easer/faster to fix American food” and “I cook both types of meals equally.” By positioning Gerber as the convenient way to bring North American and Hispanic flavors to your table easily, we will fulfill the segment’s need for quick traditional Hispanic food options for their baby. As with the other positioning, we will continue to boast how Gerber baby food incorporates love and health into its food to create a balanced start to your baby’s life that will result in a long healthy life and its quick and convenient to feed your baby.
  23. 23. 22 Gerber Hispanic Multicultural Marketing Plan Positioning Strategies We are implementing a differentiated strategy and targeting one segment that includes: “I want my kids to have the best of America and our heritage together” and “I want my kids to mold American life around our heritage,” as outlined in the Elected Target table. To this segment we will position Gerber as the baby food that helps incorporate love and health into its food to create a balanced start to your baby’s life that will result in a long healthy life. Gerber is already a very well-known, long standing brand for baby food, but by offering more variety with favorite foods cooked in Hispanic households we will be welcomed into the kitchen of the Hispanic families as they incorporate traditional and non-traditional flavors. Multicultural Marketing Program Product Strategy Regarding Gerber's product, focus will be on 2 of the 7 growing stages along with other aspects that may need to be adjusted. These areas include quality, brand name, sizes, warranties, returns, features, packaging, and product variety. Gerber currently highlights seven stages of growth for children including pregnancy, birth+, supported sitter, sitter, crawler, toddler, and toddler 2+ (Nestle, 2013). Child nutrition in the pregnancy and birth+ stages is accomplished primarily with breastfeeding and formula. The crawler, toddler, and toddler 2+ stages are where nutrition from table-food is more prominent (Nestle, 2013). For these reasons Gerber's focus should be on the sitter, and supported sitter stages of growth. This will provide an opportunity for Gerber to capture market share among Hispanics in the earliest possible stages before child nutrition migrates to more traditionally prepared foods. With regard to quality, brand name, product size availability, and warranties, it is recommended that Gerber continue with business-as-usual. The company previously made an attempt to target the Hispanic market in the United States with a campaign called "Recetas Latinas". This attempt was not as fruitful as desired though for several reasons. One very important determination was that Latina mothers had no desire to be targeted any differently than the rest of the population. A customized campaign was unnecessary as they simply wanted to be recognized as parents trying to provide for their families (Sangha, 2013). Because Gerber is over
  24. 24. 23 Gerber Hispanic Multicultural Marketing Plan eighty years old, they have easily demonstrated their commitment to quality. They are also a highly recognized brand name in the United States. Because Latina mothers do not want to be specifically targeted, it is recommended that no changes be made to the product sizes either. The company has clearly adapted well to past consumer demands and they have made adjustments when necessary. Beyond quality, brand name and size are the aspects of product features, packaging and variety. Hispanic families tend to spend more money on fresh food which they prepare homemade dishes from. They tend to hold highly the value of making their foods from scratch and it is often important to them that their food choices consist of all-natural ingredients free of artificial colors, flavors or preservatives. These are all features that need to be taken into consideration during development of the adapted product. Currently, the closest competitor in this segment is Beech-Nut Goya. Although a much smaller company, they actively produce "authentic Hispanic flavors" which are "made with natural ingredients." (Beech-Nut, 2013) Beyond composition of the product, packaging must also be addressed. In the previous campaign, part of the reason cited for Gerber's misstep was the prominence of Spanish on the labeling (Sangha, 2013). For this reason it is recommended that Gerber focus on a primarily English product label that follows the example of their existing products. Because of Latina mothers' desire to be targeted with the general public, there should be little alteration, if any, to the existing labeling. To appease customers who may prefer Spanish, it is recommended to augment the English label text with Spanish text in reduced-size font and heavily reduced prominence. This tactic should be used extremely cautiously and undergo heavy market testing prior to implementation. Finally, the most dramatic change in the product arena will be to the flavors offered for sale. Gerber's competitor, Beech-Nut Goya, currently offers 23 products that vary by type, recommended age-group, and flavor options. Some of these options include "Rice Cereal with Mango", "Guava", and "Banana Apple Plum". (Beech-Nut, 2013) After Gerber's failed attempt to effectively attract Hispanic customers, they learned that mothers tend to introduce their own interests to their children including things like language, activities, and favorite foods. For this reason, new product flavors should include more traditional Hispanic and Latino flavor offerings. Where appropriate, the following list of ingredients should be leveraged to create baby- food dishes that mimic Hispanic adult food choices (Advameg, 2013):
  25. 25. 24 Gerber Hispanic Multicultural Marketing Plan  Pork  Beef  Salsa  Chilies  Corn  Beans  Rice  Root vegetables  Chayote  Plantains  Guavas  Mangoes  Papayas  Passion Fruit  Prickly Pears Some possible flavors to consider include (Advameg, 2013):  Tamales  Empanadas  Nacatamales  Chuchitos  Humitas  Bolos  Flan (custard) In addition to product considerations, other areas of the marketing mix need to be addressed. These other areas include price, distribution, and promotion. Price Strategy Over time the price of baby food has evolved to adapt to the economy. According to a study done by the bureau of economics, the price of baby food has not changed much. Over time with inflation being considered, prices have stayed the same (Economics, 2009). From 2000 to 2008 the price varied only by a few cents. The lowest for a 16 oz. unit of baby food was $2.02; the highest was $2.15, with inflation once again being considered. The prices then varied from company to company, Gerber being a little on the higher end. From 2000 to 2008 the highest price for Gerber was $2.30 and the lowest was $2.18. The Supported Sitter category Gerber currently has a few different items which include cereals and first fruits. According to the Walmart websites these are currently only sold in stores and not available online. In the Sitter stage there are many different foods available. These include cereals and 2nd foods. For the Gerber 2nd foods, for both cereal and fruits a 4 pack goes for around $4.32, which is about $1.08 for one. For the Oatmeal single grain rice, a 2 pack is $4.94 (Walmart, 2013). In comparison Beech-Nut has a little bit lower prices. They have a 2 pack of cereal for $3.00. They have different packs of baby food ranging from a 5 pack to a 12 pack. Beech-Nut does not offer as wide of a variety as Gerber does.
  26. 26. 25 Gerber Hispanic Multicultural Marketing Plan As a company we want to stay competitive with our prices and have them reflect the quality of the new line. Even with the new line we plan on sticking to the 2 and 4 packs. We plan on keeping prices the same as they currently are for the Supported Sitter and Sitter lines. We want to have our prices reflect the value and prestige that our current line offers. We want to stick with even pricing instead of odd. We choose to do even pricing because it reflects quality as opposed to odd pricing which reflects value. We want to be known as a quality company more than anything. We want to stay with the current trends that the Sitter and Supported Sitter line currently reflect, hence why we are staying within the same price range. As a company we do not want the Hispanic population to feel targeted if we were to alter the price to be different from the current Sitter and Supported Sitter lines. By keeping the price the same it will also entice the consumer to try our new product line. We will keep offering our foods in the Sitter stage as 4 packs, we intend to keep selling these 4 packs for $4.32 and the 2 pack for $4.94. As the prices within the Sitter and Supported Sitter lines change, we will also change the price of the newly introduced line. The prices will change in response to the economy. We do not feel that we must lower prices or lower them in order to compete with Beech- Nut because we are the leader. Gerber is currently doing well with the current prices of the Sitter and Supported Sitter line. Being a higher price than other companies also shows the value and quality of our Sitter and Supported Sitter lines. We feel that by keeping prices the same as they currently are, it will help to launch our new line, which will target the Hispanic population. Distribution Strategy Gerber currently has a robust distribution strategy that covers the Hispanic market. Our focus will be to increase distribution relevant to our target market of mainly Hispanics from Mexico to ensure that our supply to Hispanic grocers meet the demand of these specific flavors of baby food. Our initial distribution efforts will be focused in the southwest, mainly Texas and California, as well as Colorado, Arizona and New Mexico. While we will focus primarily on Latinos of Mexican origin, we will do well to not neglect the other segments of the Hispanic population. Patrons from Central America, Puerto
  27. 27. 26 Gerber Hispanic Multicultural Marketing Plan Rico, South America, Cuba, the Dominican Republic, and other origins will be targeted similarly in highly concentrated areas. This will ensure that we are thoroughly covering the Latino population, but focus on Hispanics from Mexico, for they account for 66.8% of the United States Latino population. The fact that we are already in stores in the southwest helps with our distribution. We must then work on ensuring that our product is at the forefront of consumers’ minds when they’re shopping and work with our channel members to ensure that is the case. With that said we will replace some of our shelf space with our new product and create the following new strategies for our product roll out. As far as support for the channel members we will offer extra support during the product launch. Focusing on our education campaign we will support the channel members through cooperative programs such as point-of-purchase displays with bilingual introductions to the additional flavors along with the bilingual educational pamphlets. Manufacturers’ sales people will also support the initial roll out and education program. This will include our “Start Healthy, Stay Healthy” campaign and our re-introduction of this concept to the Hispanic market with their preferred flavors and products. To increase awareness and show that we care about these communities we will initially provide nutritionists at some locations to answer questions about introducing these new flavors early. The relationships with our retailers that service largely Hispanic populations will need to be the most prominent focus on our new product line. In order to obtain the buy-in of our channel members to promote our new products we will engage with them early to discuss our new product ideas and get their input on new products moving forward. They will not have full access to our new products prior to launch but we will incorporate their ideas and include them as test markets as we expand this product line to add new flavors. Promotion Strategy In order to successfully reach the Latino community, Gerber will alter their current marketing campaign and strategies through language, advertising placement, and educational and promotional materials. Revamping the ways that Hispanic women are exposed to Gerber will
  28. 28. 27 Gerber Hispanic Multicultural Marketing Plan allow Latinos to have easier access to resources regarding their children. We will start by satisfying their desire to be communicated to in their own language. Using Gerber’s current website and 24 hour nutrition expert advice call center line we will invest in a Spanish language website and bilingual experts to better interact with the Latino community. Having these materials available will allow Gerber to reach the Spanish only speaking Hispanic population that thus far had not been exposed to Gerber’s resources. Developing a website, articles, periodicals, or even blogs that cater to this population hungry for education would allow the Hispanic community to become more involved and loyal to the Gerber Company. Using both Spanish and English language, advertising efforts will be introduced into the market to target this population. Gerber will place advertisements on the radio, television, and billboards in areas that are heavily populated with Hispanic women. We expect that radio and television will be the most successful media exposure due to the fact that these are most widely used by this segment of society. These advertisements will create awareness of and drive traffic to these new additions of our Spanish language oriented resources. Our billboard efforts will kick off our promotion that revolves around our integration with hospitals and both pre and post pregnancy care facilities. Billboards will be strategically placed near these locations to best reach Hispanic women who have the need for Gerber products. An additional aspect that will be beneficial for Gerber to explore will be their involvement starting from birth. Hospitals and doctor’s offices are extremely important in the process of early childhood development. Integrating Gerber resources and products into this journey would offer them great exposure and benefit the Latino community. Hispanic women would no longer need to seek out the information that Gerber has to offer, because it would be presented to them throughout the pre and post birth experience. Having this immediate access with the support of professional advice would evoke a partnership enhancing the credibility of the Gerber Company. Resources would be available in a preferred language, no search for information would be necessary, and it would provide an opportunity for immediate feedback from professionals in the industry or contact information for the Gerber support systems. Including these constituents in the marketing campaign in Hospitals, doctor’s offices and in stores would continue to educate the audience and revamp the image that Gerber has been
  29. 29. 28 Gerber Hispanic Multicultural Marketing Plan associated with in the Latino community. Billboards, brochures and pamphlets targeted directly to this segment, as well as other forms of promotional incentive materials, will evoke a positive brand image for Gerber in the Latino community. Our efforts to integrate hospital and doctor’s offices for Hispanic exposure to Gerber are not only an attempt to advertise to this population, but also to effectively educate them as well. We will be placing Spanish language pamphlets and educational materials in maternity units and doctor’s offices that deal with child care to increase the Latino communities’ access to health and nutrition information revolving around their children. Gerber will engage in a head start by confronting this need for information as it emerges without having to wait until they get into the grocery stores to make this decision of what product is the smartest choice for them to purchase for the well-being of their child. We will also have these pamphlets available in the stores in point-of-purchase displays similarly, with the addition of exposing them to our Spanish website extension and bilingual call center for additional resources. Gerber has not explored completely or fully immersed themselves in the Latino community to date. They have contributed to the research and development of the infant stages of childhood tremendously, but have lacked in really reaching out to their consumers. When targeting such a community and family oriented culture, it is important for Gerber to be recognized as an industry that gives back to their customers. To solidify a real brand affinity with the Latino women, strides are necessary for Gerber to get involved in their cultural lifestyles. Being recognized as socially responsible through non-profit events and engaging in cause-related marketing is essential to the growth of Gerber in this culture. Hosting promotional events in cooperation with schools and daycares would be beneficial to better their image and gain the respect of the Latinos showing that Gerber has taken an interest in their livelihood. Engaging in their community will reaffirm the Hispanic population that even though Gerber failed to be successful during their initial launch of a Latino campaign, this time they have really listened to the consumer and taken into consideration what is desired by them in baby food and related products. Ideally this will be an effort towards community acceptance and respect by the Latino mothers of the United States.
  30. 30. 29 Gerber Hispanic Multicultural Marketing Plan An important aspect of our promotional campaign will be to educate Hispanic communities of the importance of healthy eating (not healthy diet, which can have negative connotations within the Latino community). We will educate them on the long-term benefits that healthy eating provides their growing children, for a lifetime with a healthy immune system, bones, and brain. Harvard University’s “Center on the Developing Child” reports the importance of, “adequate intake of both macronutrients (e.g., protein, carbohydrates, and fats) and micronutrients (e.g., vitamins and minerals) [as] particularly important in the early months and years of life when the body growth and brain development are more rapid than during any other period” (Harvard, 2013). Educating the Latino community of these important facts will build product loyalty along with a healthy and happy Latino community. We will also target the Latino community through the use of direct mail coupons. We will use the direct mail’s research services to find our target markets. Our coupons will announce Gerber’s new flavor offerings that Latino mothers will recognize from their native countries or their parents’ native countries. The coupons will be mailed with bilingual pamphlets educating our target market and drawing them to the bilingual website or bilingual call center to answer any questions they may have.
  31. 31. 30 Gerber Hispanic Multicultural Marketing Plan Evaluation and Control As a group we have many goals for the launch of our new Hispanic baby food line, we want to make sure all of our goals are met in a timely manner. Setting specific time oriented goals will allow us to efficiently track the progress of our new product line. We have four specific goals and objectives, by putting a time line on these goals, objectives, and tactics it will allow them to be more measurable. We have already met goal one which was to create the Latino baby food line. The next goal was to design packaging; we have accomplished this goal through identifying with, and catering to the Hispanic community’s desires and needs for a Latino baby food line that speaks to them like any other American parent. The third goal was to gain Latino market share which will be one of the harder goals to reach. By setting a yearly evaluation it will help to show the progress of our market share. The last goal we specifically had was to construct a brand identity that the Latino market can support. This last goal has many different components to become reachable. The total amount of time we will cater to evaluating this goal is over a year, but some of the specific components will have different time line evaluations. To become involved in the community we are hosting a certain amount of community events a month. By having a goal each month instead of over a longer time span we can specifically make sure that we are interacting with the Latino community. We also want to align with a non-profit organization in order to sponsor causes related to Latino children to promote social responsibility. With hopes of being aligned with more than one non-profit, we want to have at least one partner within three months of launching our new product line. To ensure our product is doing well within the market we plan to check monthly sales reports among all of our different distributors. Through this constant evaluation we can see where the product is thriving and where the product needs improvement. If the product is not selling well through a certain distributor we will look further into that specific distributor to see if we can identify and improve any areas of weakness. We will make a priority of ensuring that we are using our distributors strategically to our advantage. We would like to get specific feedback on the flavors that are being launched because our success depends on the acceptance of our consumers purchasing our products. To get
  32. 32. 31 Gerber Hispanic Multicultural Marketing Plan information on people who have recently purchased our Latino baby food line we will distribute surveys and conduct focus groups in order to get feedback on the new line. This will help us to see if the new products and flavors are appealing and desirable enough to satisfy the market. We will also use sales reports in order to see what flavors are selling better than others and eliminate products with low profitability. By evaluating our goals in a timely manner and looking at sales reports for areas of improvement, we can achieve maximum profitability with our new line. Our mission is to become a staple in the Hispanic community through the launch of our new Latino baby food line and ultimately achieve a successful multicultural brand extension. Gerber is fulfilling the demand for a product line that can assimilate the future Hispanic generations with the American culture while incorporating their traditions and heritage. We will work tirelessly to capitalize on this ever growing segment of our population and cater to their needs by fostering healthy growth and development for Latino infants across the United States.
  33. 33. 32 Gerber Hispanic Multicultural Marketing Plan Bibliography Beech-Nut; Goya. (2013). Beech-Nut. Retrieved September 23, 2013, from Beech-Nut/Goya: http://beechnut.com/Goya/ Bughin, J., Chui, M., & Manyika, J. (2010). Clouds, big data, and smart assets: Ten tech-enabled business trends to watch. McKinsey Quarterly(4), pp. 26-43. Census, U. (2013, June 27). State and County Quick Facts. Retrieved from United States Census Bureau: http://quickfacts.census.gov/qfd/states/00000.html Chain Drug Review. (2011, March 14). Consumers getting smarter. Chain Drug Review, 33(5), p. 31. Condon, M. (2012, December). When Work Disappears. Credit Union Magazine, 78(12), p. 44. Earth's Best. (2012). Earth's Best. Retrieved September 22, 2013, from Earth's Best Organic: http://www.earthsbest.com/about-earths-best Economics, B. o. (2009, April). The Evolution of the Baby Food Industry. Retrieved from http://www.ftc.gov/be/workpapers/wp297.pdf Evercare. (2008). Hispanic Family Caregiving in the U.S. Bethesda, MD: National Alliance for Caregiving. GPO. (2013, November 29). Retrieved from US Government Printing Office: http://www.ecfr.gov/cgi-bin/text- idx?c=ecfr&sid=6f92b77abfe77b7451ec064f075d70b8&rgn=div6&view=text&node=21: 2.0.1.1.6.3&idno=21 Kurtz, A. (2013, September 6). Baby bust: U.S. births at record low. Retrieved from CNN Money: http://money.cnn.com/2013/09/06/news/economy/birth-rate-low/index.html Levanon, G., & Cheng, B. (2011). U.S. Workers Delaying Retirement: Who and Why and Implications for Businesses. Business Economics, 46(4), 195-216. Nestle. (2013). About Us. Vevey: Société des Produits Nestlé S.A.
  34. 34. 33 Gerber Hispanic Multicultural Marketing Plan Nolasco, S. (2013, November 19). Parents of Gerbers First Latina Baby Reflect on Daughter. Retrieved October 20, 2013, from Fox News Latino: http://latino.foxnews.com/latino/lifestyle/2012/11/19/parents-gerbers-first-latina-baby- reflect-on-daughter/ Noonan, D. S. (2013, September 3). How US cultural districts reshape neighbourhoods. Cultural Trends, 22(3-4), 203-212. Registar, F. (2013, April 16). Retrieved from Infant Formula: The Addition of Minimum and Maximum Levels of Selenium to Infant Formula and Related Labeling Requirements: https://www.federalregister.gov/articles/2013/04/16/2013-08855/infant-formula-the- addition-of-minimum-and-maximum-levels-of-selenium-to-infant-formula-and-related Sangha, S. (2013, July 24). Latino Fox News. (Fox News Latino) Retrieved September 17, 2013, from Fox News: http://latino.foxnews.com/latino/lifestyle/2013/07/24/baby-food- industry-taps-into-growing-latino-market/ Stonyfield. (2011). Stonyfield. Retrieved September 17, 2013, from Stonyfield: http://www.stonyfield.com The Hain Celestial Group. (2013). Hain-Celestial. Retrieved September 26, 2013, from The Hain Celestial Group: http://www.hain-celestial.com Wentz, L. (2013, July 12). Adage. Retrieved September 20, 2013, from Adage: http://adage.com/article/hispanic-marketing/a-leader-changing-market-goya-enters-baby- food-aisle/243089/

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