Iams Media Plan


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I recently graduated from Penn State University with a degree in Advertising and a minor in Business. I completed a semester long media plan for Iam's brand dry dog food. I completed the media plan and presentation with a group of three other students during the Fall semester of my senior year.

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Iams Media Plan

  2. 2. TABLE OF CONTENTS I. Executive Summary 3 II. Situation Analysis 4- 27 III. Creative Strategy 28-31 IV. Promotional Strategy 32-35 V. Media Objectives, Rationales, and Stategies 36-46 VI. Appendix 47-51 2
  3. 3. Executive Summary The purpose of this media plan is to promote Iam’s Dry Dog Food using both offensive and defensive strategy. The Iam’s brand has been distributing premium dog food since 1946. Currently Iams products are distributed throughout 70 countries worldwide, and still continue to grow. They currently hold the number two position in the dog food market with 11% market share. By developing a family-oriented campaign for Iams, we were able to define a target audience. The target audience includes adults ranging in ages 18-54, focusing in on families that own at least one dog. We predominantly targeted the whole country with special emphasis on the South and West regions due to the amount of dog ownership. They tend to be active and often engage in sports. They are above average impulse shoppers, who tend to be brand loyal. The year-long Iams campaign stresses the idea of healthy food for your dog. By keeping the Iams brand current position of healthy food products for pets, our campaign hopes to receive the support of brand loyal Iams customers as well as exhibit a clear message to dog owners around the nation. The overall message endorses the pet being considered a part of the family by getting the same sufficient nutrition as their owners. The campaign will attract our target audience of 18-54 year olds who participate in lots of social and outdoor activities. The promotional strategies within our campaign are aimed to attract social, active and energetic consumers who tend to be impulse buyers. Both promotions created are positioned to not only raise the sale of Iam’s products but, also help consumers in their aid for convenience. “Double Your Deal” is a regional promotion that will debut in September of 2007 and will remain valid until October. This promotion will give people who shop in retail stores throughout the nation, a chance to receive two 4 lb. bags of Iams dry dog food for the price of one 4 lb. bag of equal or lesser value. Our second regional promotion, “Two Good” is a chance for Iam’s customers to win a trip to Orlando, Florida. Any customer who purchases a bag of Iams has a chance to enter and win the grand prize to Florida, along with many other prizes such as an Apple I-Book computer or, an I-pod Nano. “Two Good” will start in February 2008 and end in March. The media plan is focused mainly on a national level but has some spot markets located in specific areas to help support both our offensive and defensive strategies. The primary medium that we chose to use was television with an emphasis on sports TV programs. The months with the heaviest advertising in our plan are September, October, February, and March. This is mainly because we have our promotions fall during those months. Our baseline numbers per month are a frequency of 3, a reach level of 70, and a total of 210 GRP’s. With such a large target audience and a strategically thought out media plan we plan to achieve the best numbers with the least amount of money. 3
  4. 4. Situation Analysis 1. Current Marketing Factors Iams Brand History In 1946 Paul Iams founded the Iams Company. In 1950 he came up with his first premium dog food, Iams 999. Paul Iams created The Iams Company in Dayton Ohio in 1956. Iams Plus was an improvement of the brand created in 1961 and referred to as the pet food industry’s first complete diet because of its lack of additives. Iams distributed this product through dog breeders, kennels, and veterinarians using word of mouth to spread the high quality of the product. The 1970’s held many strategic changes with help from a new and promising manager named Clay Mathile. Costs were increasing in the dog food industry, but Iams refused to use cheaper ingredients and risk losing their unique brand. In 1973, Iams was selling at a loss, which threatened the company but gave Mathile an opportunity to buy 50 percent share of the company. Mathile bought a quarter-page ad in Dog World magazine and promoted the product at dog shows. By 1975, the company was no longer in the red and distribution increased worldwide. By 1979 sales doubled twice after Mathile changed the dog food’s appearance to appear like the more traditional pellet-shaped dog food. The Iams Company soon outgrew its Dayton headquarters and built a new plant in Lewisburg, Ohio. With a new brand, national distribution, growing facilities, and skyrocketing sales, the company was doing very well. In 1981, Paul Iams retired and sold his half of the company to Clay Mathile and his wife. Iams became more efficient with newly hired managers and the creation of a board of directors. Sales by 1982 had grown to at least $10 million as the whole pet food market was experiencing great power. With a rising general interest in health food, more consumers were turning to better quality food for their pets. Iams continued to sell through veterinarians and breeders with sales growing quickly in the 1980s. Clay Mathile's growth strategy inspired the company’s expansion in manufacturing capacity. Iams updated its plants and built a new factory in Aurora, Nebraska in the 1980s. The annual production capacity doubled between 1985 and 1989 with Iams extending their sales overseas as well. In 1988 the company launched its first mass-market advertising, spending an estimated $8 million on its campaign. By 1990, the company's annual sales were estimated at $210 million and profits were growing at 25 percent. Consumers paid more for Iams premium quality and their profits were increasing. 4
  5. 5. Tom McLeod became the company’s new president in 1990, as many new premium brands entered the market. With Iams’ success being copied, the company had to increase its awareness. They began to contact consumers through direct mail, and attempted to reach them with public service ads. In 1993 Iams advertised in newspapers with the slogan, quot;If you're in the market for the best pet food, get out of the supermarket!quot; The ads listed area pet stores where Iams brand pet foods were sold but competing directly with supermarket brands was not easy. The following year, Iams launched a direct-mail campaign to build brand loyalty and contact new pet owners. Using a personal approach generated an overwhelming response and accumulated an essential database of concerned and loving pet owners. In 1996 the company changed its target slightly. Iams buyers were typically high- income families usually with purebred animals. The new campaign tried to reach the millions of pet owners that adopted animals from shelters. Iams sponsored a Pet Adoptathon, which attracted 700 participating animal shelters and aired public service ads concentrating on the joys of having a pet. They used with flyers and samples, but the ads themselves were not intended to sell the pet food. By 1996, Iams's sales were estimated to stand at more than $300 million. By 1997, Iams started construction on its first overseas plant. The plant, located near the Netherlands, was to manufacture Iams from raw materials gathered in Europe, cutting the company's import costs, and speeding up delivery of European orders. The company remained privately held, financing its growth through its profits. In September 1999, The Procter & Gamble Company (P&G) acquired Iams and joined P&G’s Health Care global business unit. Iams sales have been rising rapidly for a century. The lower-priced brands, although threatening, had not yet hurt the company thanks to loyal customers, an expanding base of U.S. pet owners, and potential markets abroad. Iams seemed to have created and maintained the formula for success. How Iams Differs From Competition For many years, Iams has differentiated itself from competitors by producing quot;nutritionally completequot; pet foods with heavy reliance on animal protein, instead of the grain proteins found in many of its competitors' products, giving Iams the edge. Iams gained its reputation with the founder’s unique blend of healthy nutrients in 1946. By the end of the 1970’s, Iams changed the look of the dog food to appear more appetizing to dog owners as well as their pets. In 1994, Iams added omega-3 to the dog food and emphasized its importance in their Smart Puppy brand for brain development. Today, the dry adult dog foods contain complete nutrition, with more chicken, egg and fish than the leading competitors (Iams.com). Iams brand contains high quality ingredients to help dogs live a healthy life. Iams dry dog foods are prepared for dogs in three age groups puppy, adult and mature adult. 5
  6. 6. Owners with puppies can chose recipes from the Smart Puppy Formula with small and large breed choices. Adult dog owners can choose recipes such as weight control, chunks and mini chunks, lamb meat and rice formula, large breed formula and an adult small and toy formula. Mature dog owners have their own special blend called Active Maturity. Along with their recipes, Iams competes for a larger chunk of the market by differentiating their products and revitalizing their brand. As the pet food market has become saturated with new products for nutrition and convenience demands, Iams works to stay ahead by distinguishing their brands packaging to emphasize the main qualities of Iams such as healthy diets, less free time and consumer preference for one stop shopping (Iams.com). In 2000, Procter & Gamble distributed its premium Iams brand to 25,000 new retail outlets. Moving the premium brand to mass distribution strengthened the consumer’s reliance on retail stores and convenience in one stop shopping. Since their move, Iams dry dog food went up 8 percent in dollar sales and 5.6 percent in unit sales. Iams currently holds the No. 1 spot in food, drug and mass, excluding Wal-Mart, according to Information Resources Inc. data. Market Size The market forecast for US retail sales of pet food shows a steady increase, likely due to the increase in pet ownerships. Currently, 62% of US households own a pet according to figures from the National Pet Owners Survey conducted by the American Pet Products Manufacturers Association, Inc. In 2008, the US pet food market is forecast to reach $17 billion in value, representing a compounded annual growth rate of 3.7% from 2004 (umassd.edu). Brand’s Current Sales, Market Share, Awareness, Goals Iams brand dry dog food currently accounts for $1.4 billion dollars and a volume of 166 million (ACNielsen). Since Iams was bought in by Proctor & Gamble in 1999, it claims to be the # 1 pet food brand in the U.S., with around 11% market share (pg.com). In 1985, Iams was about $50 million in sales with 200 plus employees in three major locations. At the end of 2001, its sales were over $800 million with more than 2,000 employees worldwide. Iams is seeing record sales because of its entry into the mass market (iams.com). Procter & Gamble LLC required a nation wide, in-store vehicle and brand communication solution to increase awareness and promote the recent addition of the 'Iams-Good for life' brand of pet foods (www.talonch.com). This method of communication helped pump the company's growth. The basis for the promotion was to enhance and inform dog and cat owners of the variety of health benefits tied into each of the two segments of the brand. 6
  7. 7. The Iams program was a success, fitting right into the time frame and budget. The promotion as a whole produced awareness, increased sales and communicated the core benefits and commitment of the Iams brand to the consumer. The resulting benefits of this promotion allowed the Iams brand to maintain a segregated position in retail allowing for ease of SKU identification and overall brand presence. In 2006, Iams teamed with 1,900 animal shelters to find loving homes for more than 328,000 orphaned pets. They distributed 100,000 Iams Adoption kits and were able to publicize the Iams brand at the same time. Since the program was launched, it has facilitated the adoption of more than 1,000,000 dogs and cats while promoting their brand at the same time. Iams Product Life Cycle When Proctor and Gamble acquired Iams in 1999, they took was best known as a premium pet food and transformed it into a fast growing sub-category and springboard for new products and services (www.prtm.com). P&G took the existing success formula and used their superior distribution capabilities to increase Iams presence in retail outlets by 50 percent. The company then emphasized its innovation efforts on creating dog foods that would lengthen the pet’s lifetime. Focusing on health benefits, P&G transformed the brand into one that addresses customers’ fears about their pet’s well being. P&G’s strategy saw powerful results with a new and growing health-conscious dog food subcategory. In addition, P&G now has credible options to expand offerings under the Iams brand to include health services and insurance for pets. P&G did more than simply move pet food up the lifecycle maturity curve. Management understood the lifecycle position of the pet food market and figured out how to best reframe the product and explore other early lifecycle opportunities (www.prtm.com). Geographic Breakdown The Iams Company sells two brands, Iams dog and cat foods, and Eukanuba. Iams has manufacturing facilities in Lewisburg, Ohio; Aurora, Nebraska; Henderson, North Carolina; and a plant for its international division in Coevorden, the Netherlands. The company distributes its pet foods in more than 70 countries worldwide. Iams also maintains a pet research center in Lewisburg, Ohio, where veterinarians, chemists, and nutritionists study dog and cat diets on laboratory animals raised as pets. Occupying a booming segment of the pet food market, Iams in the late 1990s was one of the fastest growing pet food companies in the world. Today, the pet food industry is experiencing changes as the overall demand for pets has increased. The number of pets per person is alarming with 377.8 millions pets versus 300 million people as of fall 2006. 7
  8. 8. Level of Consumer Involvement The Iams Company is planning to significantly increase its ties to animal shelters across the country with a new national grassroots campaign starting in May (Strategy Magazine 2007) This year, a P&G spokesperson Joyce Law says they are putting all of their effort behind the campaign. Nationally, the campaign will drive pet adoption with a specially designed website, and with POP on retail shelves that promotes the brand's partnership with the CFHS. Adopters will get an Iams Starter Kit, including food, coupons and information about pet insurance. For every adoption, Iams will donate four pounds of food to that shelter. quot;Building the relationships with the shelters in the local communities is a really important grassroots effort,quot; Law says. But rest assured it's also a means to inject a more personal, warm and fuzzy glow into the Iams brand. quot;We're promoting the equity of the brand through the program,quot; she says. With consumer trends resembling becoming less passive and more active, the Iams Company as a part of P&G has begun weaving themselves into viral communities, blogs and other new ways to interact online. 2. Advertising/Creative history Brands positioning history Ever since the company first opened in 1946, IAMS has been advancing their formula to give animals a complete diet. In 1961 Iams Plus was formulated by the company and was considered to be the pet food industry's first complete diet since it did not require any extra additives. The pet food was only distributed through breeders, veterinarians and kennels and throughout the 1960’s it was only being distributed in five Midwestern states. In 1970, Paul Iams was introduced to Clay Mathile who had previously worked for the Campbell’s soup company. Mathile took the initiative to start a marking campaign for Iams. In 1975, Mathile was promoting the Iams products through dog shows as well as taking a step further to published a quarter page ad in Dog World magazine. The 1980’s were a big booming period for the Iams Company. While Iams began to manufacture new products such as cat food and puppy food, the company made a conscious decision to increase their advertising strategy by distributing education pamphlets about their products. Circulation of the Iams products started to flourish over- seas by the mid-1980’s. This lead the company to spend an estimated $8 million to launch its first mass-marketing campaign to further promote their name. 8
  9. 9. The 1990’s brought some competition with new brands of dog and cat food entering the market. New company president Tom McLeod realized that with all the new competitors, Iams would have to step up their advertising strategy. As a result, Iams began to contact customers through direct mail as well as reaching them through public service advertisements. The company realized that it was becoming difficult to only sell their products through veterinarians and breeders. Iams came up with a campaign that swayed customers by offering a free bag of Iams or Eukanuba in exchange for an empty bag of a supermarket brand cat or dog food using the slogan, “If you're in the market for the best pet food, get out of the supermarket!quot; In 1994 Iams started to contact potential new customers by launching a direct-mail campaign. The campaign-distributed newsletters that were personally addressed to the pet itself informing customers about dog and cat nutrition. Addressing the newsletters to the pet itself ensured customers that Iams was a company that thought of the pet as a family member. The campaigns lead to an anticipated brand loyalty amongst its customers as well as earning the company with a successful response. Iams was seeing that their customers were generally individuals that came from upper middle class families. In order to generate a larger fan base, the company decided to launch a new campaign in 1996. Iams sponsored a Pet Adoptathon, which was aimed to commemorate pet ownership. The Adoptathon featured about 700 animal shelters across the United States and Canada. The promotion gave Iams a huge marketing potential and a large amount of publicity. In the spring of 2000, the drastic decision was made to start distributing Iams products in grocery stores nationwide. The company needed to strategically market their product to not only inform their customers of this decision but to try and bring in new potential consumers as well. The angle on the campaign was to endorse the benefits of their pet’s diet in which only Iams products would be able to provide. The company decided to advertise in certain media outlooks that would ensure them that they would be able to reach their target audience. With a budget of no more then $20 million, Iams was being advertised on network television, pet magazines and pet editorials. Advertising was also done within grocery stores by using in-store displays as well as in-bag coupons. In more recent years, Iams has been known to use taglines such as Iams. Good for life; Good for Today. Good for Life. The tagline goes right along the Iams Company mission to “enhance the well-being of dogs and cats by providing world- class quality food.” 9
  10. 10. Brand differentiation The Iams Company was always in some way unique whether it was through their distribution or formulation of products. In the 1960’s Paul Iam’s created a formula that exampled a pet’s complete diet. Iams Plus was a new kind of pet food that was high in protein but yet low in hurtful minerals. At the time, Iams was the only pet foods that made this quality available. They knew that just like humans, pets need a substantial diet to keep them healthy and growing. In the 1970’s, Iams was not generating income as they would have hoped for. This of course was due to stand against switching to lower-cost ingredients. Iams did not want to risk their reputation nor product by making the switch so the company decided to stick with the higher-cost ingredients despite the fact that they were losing a substantial amount of income. Loyal customers would realize that the Iams brand was trustworthy and devoted to producing a well-made product. Up until March 2000, Iams was a brand that only sold its products exclusively through breeders, veterinarians and kennels. Being sold exclusively gave the brand a more prestigious outlook to many of its customers. However, this soon changed when Iams was bought by powerhouse company Procter & Gamble. P&G claimed that through their research 70% of consumers do not shop for pet food in specialty stores. On March 2nd, Iams products were being places on the shelves of more than 25,000 grocery stores across the United States. In July of 2002, the Iams Company came out with a product that would enable pet owners to travel effortlessly with their dog or cat. Travel Meals was the first of its kind. This simple creation was an affordable and yet healthy resolution to pet travel. It features either Iams dog or cat food that also comes along with a plastic container that can be converted into a water bowl. As Creative Weekly states, “The food and water are both stored in sealed bags that maintain freshness and prevent leakage.” If food and water wasn’t enough, the product also contains a special scoop bag for one’s dog and a disposable litter box for cats, complete with liter. What types of advertising/promotions have been used? Since the 1970’s, the Iams Company has used various types of advertising strategies from educational pamphlets to direct mailing. However, more recently Iams has been a sponsor to a pet adoption drive that has been held for the past six years. Iams Home 4 the Holidays is an endeavor to give homes to around 350,000 dogs and cats around the holiday season. When the adoption drive first began back in 2000, only 14 shelters helped with the collaboration. Today, about 2,000 animal shelters help out the cause. To help encourage individuals to adopt, the Iams Company offers a free adoption kit, pet food and guide to pet care. 10
  11. 11. In April 2004, Iams sponsored a pet makeover contest titled, “Iams Stronger, Shinier, and Healthier Pet Makeover”. The contest was a part of the company’s “See the Difference” campaign, which helped to show pet owners the benefits of using Iams products. TLC’s Trading Spaces star Hilhi Santo Tomas also pitched in by going on a promotional media tour with her dog Pluto. The grand prizewinner received a trip for two (including their pet) to Miami Beach’s Lowes Hotel along with a lifetime supply of Iams pet food. The brand’s media mix In 2005, pet food companies spent a total of $575,500,000 on media advertising. Network television came out on top with a total of $149,400,000 spent with magazine advertising ($142,600,000) coming in second and Internet advertising ($119,500,000) in third. Benefits the brand promises, offers, delivers The Iams Company has stated that their products are able to “enhance the well- being of dogs and cats by providing world-class quality food.” With that said, Iams pet food provides the necessary ingredients to nourish the heart, liver, kidneys, and skin to one’s pet. The vitamin-rich fish oils that are in their products support to maintain a healthy shiny coat. Iams provides premium brands of dog and cat food. This in itself will benefit one’s pet because of the simple elements that are used to create their products. Essentially, better ingredients means better digestibility so pets do not need to consume as much food. The pet will feel full for a longer period of time, which will ultimately benefit the owner as well since they do not have to worry about consistently feeding their pet. Current perception, awareness, attitudes Research indicates that customers were generally happy with their Iam’s dog food. Through the website, epinions.com, the overall consensus amongst consumers was that Iams pet food did indeed improve their pet’s coats; health and most importantly their pets enjoyed the taste. The biggest complaint these specific customers claimed that the products were a bit pricey. Other than customer’s perceptions about the Iams products, the PETA organization has been investigating the pet food company since 2002 claiming that Iams has been undergoing cruel animal testing on dogs and cats. PETA claims that under their investigation they found, “dogs gone crazy from intense confinement to barren steel cages and cement cells, dogs left piled on a filthy paint-chipped floor after having chunks of muscle hacked from their thighs; dogs surgically debarked; horribly sick dogs and cats languishing in their cages, neglected and left to suffer with no veterinary care.” 11
  12. 12. Allegedly, reports claim that Iams had lied to PETA when confronted about this problem. The Iams Company agreed to develop better living conditions for the animals, yet failed to do so. Since the investigation, Iams officials claim that they have removed the animals from their laboratory but have refused to let anyone from PETA come in to inspect. PETA still argues that Iams continues to conduct animal testing on rabbits, ferrets, and other animals for cosmetic testing. When consumers asked why PETA was targeting Iams specifically the company responded, “Iams claims to be a leader in the pet food industry. We’re asking the company to act like one. As a major food producer, its pioneering choice to end laboratory testing on animals would serve as an example of progress in the industry and would begin a truly “new and improved” era in pet food, not just a minor change at the animals’ expense.” Iams responded to PETA’s claims by teaming up with the ASPCA. In October of 2004 the ASPCA released a statement under their website stating that they have joined forces with Iams to work on improving of the lives of dogs and cats in hopes to ensure the company takes good care of the animals that are used in their nutritional studies. 3. Dog Food Industry leaders In the United States today there are over 175 pet food manufacturers, bringing in constant total revenue of around $12 billion annually. There being only six different categories of pet food available to purchase, dry dog food is the market leader carrying above the rest with a share of 58.5%. Listed below are the few top dry dog food competitors in the pet food industry today. (http://www.ita.doc.gov/td/ocg/petfood_overview04.pdf) U.S. Sales for Dry Dog Food in U.S. $ Billions Dog Food Brands 2002 Sales 2003 Estimated Purina $3.8 $3.7 Iams $1.5 $1.6 Hill’s $1.4 $1.5 Pedigree $1.4 $1.4 Ol’ Roy $1.2 $1.3 Kibbles ‘N Bits $1.0 $0.9 Nutro $0.5 $0.5 All Other Brands $1.7 $1.7 Total $12.3 $12.5 12
  13. 13. Dry Dog Food Market Share 14% 30% 4% All Others Nutro Purina 7% Kibbles 'N Bits Ol' Roy 10% Iams Pedigree 12% Hill's 11% 12% Purina The Nestle Purina Company is currently ranked as number one in selling dry dog food and number one in the overall dog food industry as well. While holding approximately 30% of the market share of all dog food, Purina has continued to remain on top throughout the years and be able to bring in a total of 10.1 billion in revenue, making it the largest manufacturer. In just 2002, Purina alone brought in a total of $3.8 billion in total sales. Purina is known globally for showing their true passionate and committed love to all animals, striving to make their lives better in every way possible. Not only does Purina strive to make dogs lives better but also wants to help make them healthier too. With having many different dry dog food brands available from age of puppies to adult senior dogs, Purina provides total nutrition in their targeted nutritional formulas to ensure good health than you can see in your dog during any and all stages of life. Brand names of Purina dry dog food include: Puppy Chow, Purina ONE, Purina Pro Plan, Purina Hi Pro, Purina Dog Chow and Purina Beneful. Advertising and promoting of Purina pet products is mainly done via Internet, network television and in specialized consumer magazines. The majority of the Purina television commercials are aimed at a healthier approach promoting more of their healthier dog foods such as Purina Pro Plan. Their now current campaign with Purina Pro Plan is “Dogs can enjoy up to two extra years of healthy life.” 13
  14. 14. Purina is also doing larger promotions on their Purina ONE brand of dry dog food. They are currently advertising to owners and their pets to take the Purina 30-day challenge, which is feeding your dog only Purina brand dog food and seeing if you notice a difference in your dog in just one month’s time. They believe you will and have posted scorecards to help you keep on track and actual testimonials online of dogs and their owners that have previously taken the Purina Challenge. In just one year’s time, Purina spends around $108,000,000 on advertising. Purina takes pride in supporting and representing itself in their annual Purina National Dog Show, Purina Pets for People, The Purina Incredible Dog Challenge, over 150 other national canine parent club organizations, competitions and being actively involved in the community environment. Over $20 million has already been donated from Purina organizations, to help further fund canine research, animal welfare organizations, breed rescues, place pets in homes and other educational canine programs. (http://www.purina.com/company/index.aspx) (http://www.purina.co.uk/index.asp?frame=/brands.asp&brandId=17) Hill’s Hill’s Pet Nutrition currently hit sales and recorded revenue at $1.4 billion at the end of its fiscal year in 2002, ranking the company as second in the dry dog food industry, tying along side Proctor & Gamble’s The Iams Company, which had sales of around $1.5 billion. Hill’s also currently holds a solid 12% of the market share, along with The Iams Company holding another 12% and Purina with 30%, all three holding a combined total of a 54% share of the entire market industry. Colgate-Palmolive, which is the company that markets Hill’s brands; known globally for its popular dry dog food brands such as Prescription Diet, Natures Best and Science Diet. Hill’s Prescription Diet brand however is only sold through veterinarians, breeders, and authorized pet-supply retailers, while other Hill’s brands are available to purchase at local pet stores and retailers. The Prescription Diet brand was also the first pet food designed to help dogs with kidney disease. Hill’s main objective is to provide the best pet nutrition in the world, which will overall help enrich and lengthen the special relationship and bond that you and your pet share. Hill’s takes on extra concern for you and your pet’s health needs. They are constantly researching new ways to improve their products and try to create new ones to ensure that your pet lives a longer and healthier life. 14
  15. 15. Hill’s Pet Nutrition also takes great part in being highly involved in Animal Welfare. Hill’s only supports and conducts research under strict rules that no animal be harmed for whatever reason. Their quality scientific research and compassion and love for animals remain and have the same guidelines, to help improve pet’s lives making them healthier. (http://www.hillspet.com) (http://www.answers.com/topic/hill-s-pet-nutrition-inc) Pedigree At Mars Inc. it’s a name globally known to be a high quality and trustworthy family business making it the largest “small family business” in the world. Their brand name Pedigree holds a market share of 11% in the dry dog food market. Pedigree brought in a total of around $1.4 billion sales as well in the end of 2002. Pedigree strives to provide dogs with a full balanced diet of vitamins, minerals, essential fatty acids, fiber and protein. They want dogs to be the best he can be with Pedigree. Pedigree dry dog food helps make it more convenient for the consumer at home but also helps fight and stop the accumulation of dental tartar and plaque with each bite a dog takes. All these ingredients can be found in each of Pedigree’s different yet unique brands of dry dog food which are specifically made for every aged dog from puppy, adult, senior and even overweight, such as: For puppies: Pedigree Puppy; For Adults: Chicken, Rice & Vegetables, Small Breed, Large Breed, Pedigree Complete Nutrition, Lamb & Rice, Pedigree Performance, Weight Loss and Weight Maintenance; For Senior Dogs: Pedigree Healthy Maturity; For Overweight Dogs: Weight Loss and Weight Maintenance. Pedigree wants to be as highly active in the pet’s environment as possible. That is why they are supporting the Katrina fund to help with pets and owners in need from Hurricane Katrina. Already since Katrina, Pedigree has donated over 400 tons of food to pets in need and to the American Humane Society Association in Florida, Alabama, Mississippi and Louisiana, helping the animals and urging you to help them too. Pedigree is also highly active in the Adopt A Pet Foundation. Television commercials are aired to promote their campaign of Pedigree Adoption Drive. With each bag of Pedigree dry dog food sold they will donate a portion to the Adopt A Pet Fund. Their campaign and slogan has an emotional selling proposition (E.S.P.) to the viewers/pet owners with showing sad, homeless and sheltered dogs with saying “Dogs Rule” and “Help Us, Help Them.” 15
  16. 16. Pedigree promotes newsletters to all Pedigree pets owners free online, on simply how to get some extra advice and tips on quality care your dog deserves. They offer a pet first aid section to inform consumers on important information that could be helpful for any pet in case of a real emergency. Pedigree also offers certain dog food specials and promotes printable coupons for percentages off any consumer’s next purchase of Pedigree dog food online, only redeemable throughout a limited time however. (http://www.pedigree.com/dogproducts/dry.asp) Ol’ Roy Ol’ Roy is currently listed as fifth in the dry dog food market. Ol’ Roy is the only pet food name brand of Wal-Mart stores, making it the single largest dog food brand ever. Wal-Mart has made the brand Ol’ Roy into a national known brand with a market share of 10% in the industry, making it one of the top competitors with annually bringing in $1.2 billion in total sales per year, as noted in 2002. The brand name Ol’ Roy only does advertising and promoting through Wal- Mart stores. It has never been featured in its own television commercial or campaign, only solely being advertised and promoted through Wal-Mart. Still the brand is seen as a national brand name and Wal-Mart giving it a slight, higher advantage with their everyday low prices versus the more expensive competitors of dry dog food in the market. (http://en.wikipedia.org/wiki/Ol%27_Roy) Kibbles ‘N Bits Part of Del Monte Foods Company, Kibbles ‘N Bits has over $1.0 billion in sales annually since 2002. They currently hold 7% of the overall market share in dry dog food. Kibbles ‘N Bits strives to make dogs happy and healthy with each and every nutritious bite they take of the product. Kibbles ‘N Bits is unique like few other dry dog food brands because their company Del Monte makes food for not only pets but people too. They feel dogs should be able to enjoy and have the great taste in their food as people have and enjoy it as well. That is why Kibbles ‘N Bits offer the most original dry dog food flavors such as: Kibbles ‘N Bits Burgers ‘N Cheeez, Kibbles ‘N Bits Brushing Bites, Kibbles ‘N Bits Golden Years, Kibbles ‘N Bits Homestyle, Kibbles ‘N Bits Original, Kibbles ‘N Bits Mini Bits, Kibble ‘N Bits Beefy Bits and Kibble ‘N Bits Balanced Bites. Kibbles ‘N Bits is proud to say and show that all of their dog food meets all AAFCO standards for complete and balanced nutrition and that it is boldly pasted on every single one of their dog food packages. They also post a healthy feeding guide on their company websites to ensure you are properly giving your dog the total nutrition he deserves. 16
  17. 17. Currently Kibbles ‘N Bits is advertising their new campaign “More Taste. More Joy.” and promoting their newer flavors of Kibbles ‘N Bits Brushing Bites and Kibbles ‘N Bits Golden Years dry dog food via network television commercials and internet sources. (http://www.kibblesnbits.com/) Nutro The private company of Nutro Products Inc. holds a solid 4% of the market share in the industry making them one of the top competitors. Nutro Products Inc. reached their annual sales of $0.5 billion at the end of their fiscal year in 2002. Nutro understands that dog’s aren’t just owner’s companions, but part of their family too and make their goal to keep them healthy throughout each and every life stage. Nutro has been in business for over 75 years and are constantly striving to provide dog’s with better ingredients, better nutrition and better health, no matter what the cost. Brand names for Nutro Products Inc. include: Natural Choice Dog, Max Dog and Ultra Dog all ranging from puppy to adult sized food. Nutro uses only the best quality and 100% natural ingredients for all furry friends. They are one of the few companies that make special use of cranberries in their products to help maintain urinary tract health. Nutro loves animals and wants them to be 100% healthy and take these matters very seriously in their company, so serious in fact to sue other top dog food competitor Iams. Nutro is accusing Iams of false advertising and both lowing nutritional value and serving size in order to lower their overall prices. Nutro found that when conducting independent studies on Iams brand products the ingredients reacted with the animals in such a way, making them lose weight rapidly. Fast enough that all studies had to be stopped, for it was getting dangerous for the animals. Nutro filed a legal lawsuit against Iams and has promoted and informed all of their current customers through their website and newspapers to support them in the filing against Iams. Nutro currently promotes a frequent buyer program on their website, for if consumer’s buy any 10 products for their pet’s they will receive one free and will also be sent $20 in valuable coupons along with a frequent buyer card at their home address. Nutro also gives away a free year’s supply of dog food to one lucky owner and their pet by simply going online and registering and filling out a simple survey about the company and personal purchasing habits. The winner is randomly chosen via Internet. Nutro hosts and holds an annual National Dog Show, the Nutro Cup, open for any dog to participate, however the cup is not hosted in the United States only in Russia. (http://www.answers.com/topic/nutro-products-inc) (http://www.nutroproducts.com/) (http://www.uncaged.co.uk/news/2002/asa2.htm) 17
  18. 18. Other Competitors The rest of the top 50 top dry dog food companies make up the remaining 14% market share in the industry. Most of the companies hold only less than 1% market share however. Just a few of the names are as follows: Active Life Pet Products, Canine Cookie Company, Land O’ Lakes/Farmland Feed, PetGuard and Diamond Pet food. These companies rarely are heard of and/or purchased, but still somehow remain in the top 50 companies of the overall 175 in the industry. All of these brands combined bring in total revenue of around $1.7 billion in sales annually. 4. Target Audience The following information is taken from Choices 3 Viewer: Cross tabulation Report. Survey: NCS Fall 2002 Adults Full Year (Jan02-Sept02) – POP. Target: Total Sample, Sample: 20,024, Weighted: 205,671 (000). Key: This part is for the tables shown below to have a better understanding of the headings. Population = The total amount of people within the group Prefer Iams = The amount of people within that population that prefer Iams Percentage = The people that prefer Iams (within the group) divided by the population (within the group) and then the answer is multiplied by 100. Index = The percentage of people that prefer Iams divided by the percentage of all people that prefer Iams. This is important because it shows if the group has a higher percentage of people that prefer Iams. Important Information Total population- 205,671,000 Percentage of all people that prefer Iams- 3.13% 18
  19. 19. The target audience for Iams is broken down into the following sections: Demographics: • Sex- Males may have a slightly higher percentage of people that prefer Iams than females, but both sexes are important parts of the target audience. o Male ! Total Population • 98,634,000 ! Prefer Iams packaged dry dog food • 3,107,000 ! Percentage of all males who prefer Iams • 3.15% ! Index • 101 o Female ! Total Population • 107,036,000 ! Prefer Iams • 3,328,000 ! Percentage of all females who prefer Iams • 3.11% ! Index • 99 • Age- The age of the target audience ranges from 18-64. Below are the age groups with the highest index numbers of those who prefer Iams. o 18-21 ! Population • 16,055,000 ! Prefer Iams • 668,000 ! Percentage • 4.16% ! Index • 133 o 22-24 ! Population • 10,955,000 ! Prefer Iams • 489,000 ! Percentage • 4.47% ! Index • 143 19
  20. 20. o 40-44 ! Population • 24,468,000 ! Prefer Iams • 922,000 ! Percentage • 3.77% ! Index • 120 o 45-49 ! Population • 18,996,000 ! Prefer Iams • 726,000 ! Percentage • 3.82% ! Index • 122 o 50-54 ! Population • 18,823,000 ! Prefer Iams • 681,000 ! Percentage • 3.62% ! Index • 116 o 55-59 ! Population • 12,509,000 ! Prefer Iams • 410,000 ! Percentage • 3.28% ! Index • 105 o 60-64 ! Population • 11,415,000 ! Prefer Iams • 466,000 ! Percentage • 4.08% ! Index • 130 20
  21. 21. • Race- Out off all races, Caucasian is the only race to have the index numbers high enough to be targeted. o White ! Population • 171,460,000 ! Prefer Iams • 6,153,000 ! Percentage • 3.59% ! Index • 115 • Education o Completed college or more ! Population • 48,499,000 ! Prefer Iams • 1,904,000 ! Percentage • 3.93% ! Index • 125 • Employment Status- It seems as though working people overall have a good percentage of people that buy Iams. This does make sense because you need some form of income to own a dog. o Full Time Job ! Population • 106,451,000 ! Prefer Iams • 3,899,000 ! Percentage • 3.66% ! Index • 117 o Part Time Job ! Population • 27,717,000 ! Prefer Iams • 899,000 ! Percentage • 3.24% ! Index • 104 • Marital Status- Married people are more likely than single people to purchase Iams dry dog food. 21
  22. 22. o Married ! Population • 117,611,000 ! Prefer Iams • 4,109,000 ! Percentage • 3.49% ! Index • 112 • Household Income in Dollars- Those with incomes of $60,000 or higher are more likely than those with incomes less than $60,000 to purchase Iams dry dog food. Those grouped under a $60,000 household income have indexes too low to consider. o 60,000-74,999 ! Population • 22,540,000 ! Prefer Iams • 837,000 ! Percentage • 3.71% ! Index • 119 o 75,000-99,999 ! Population • 28,316,000 ! Prefer Iams • 1,571,000 ! Percentage • 5.55% ! Index • 177 o 100,000-149,999 ! Population • 29,774,000 ! Prefer Iams • 1,216,000 ! Percentage • 4.08% ! Index • 131 o 150,000-249,999 ! Population • 13,872,000 ! Prefer Iams • 751,000 22
  23. 23. ! Percentage • 5.42% ! Index • 173 o 250,000 or more ! Population • 4,299,000 ! Prefer Iams • 198,000 ! Percentage • 4.61% ! Index • 147 Geographics: • Census Regions- Although the South and the Northeast are important parts of the country for the target audience, the amount of people that live in those parts of the U.S. both do not have as high of a percentage of people that favor Iams compared to the West and Midwest. The west has the highest index of all regions. o Midwest ! Population • 49,503,000 ! Prefer Iams • 1,669,000 ! Percentage • 3.37% ! Index • 108 o West ! Population • 41,533,000 ! Prefer Iams • 1,890,000 ! Percentage • 4.55% ! Index • 145 Media Usage: • Quintiles (Highest Usage)- All of the media types have a good percentage of people that favor Iams. The largest percentage by far is under the Outdoor category, which has a percentage of 4.07. o Magazine ! Population 23
  24. 24. • 40,230,000 ! Prefer Iams • 1,383,000 ! Percentage • 3.44% ! Index • 110 Newspaper (Weekdays and Sunday) o ! Population • 32,358,000 ! Prefer Iams • 1,179,000 ! Percentage • 3.64% ! Index • 116 Radio All Day o ! Population • 45,596,000 ! Prefer Iams • 1,583,000 ! Percentage • 3.47% ! Index • 111 TV All Day o ! Population • 41,383,000 ! Prefer Iams • 1,363,000 ! Percentage • 3.29% ! Index • 105 Yellow Pages o ! Population • 45,119,000 ! Prefer Iams • 1,509,000 ! Percentage • 3.35% ! Index • 107 Outdoor o ! Population 24
  25. 25. • 37,289,000 ! Prefer Iams • 1,518,000 ! Percentage • 4.07% ! Index • 130 Psychographics: This section is very important when it comes to the target audience. There are many different categories to help determine the psychographics of the target audience so a few important ones are listed here. In general the people in the target audience are intelligent and are happy with their lives. They are mostly up to date with technology and research the products that they buy. • Psychographic Scales o Informed Consumers ! Population • 53,426,000 ! Prefer Iams • 1,751,000 ! Percentage • 3.28% ! Index • 105 • Opinions/Attitudes o Internet changed how I shopped for products ! Population • 13,142,000 ! Prefer Iams • 686,000 ! Percentage • 5.22% ! Index • 167 o Internet is my prime source of entertainment ! Population • 6,518,000 ! Prefer Iams • 220,000 ! Percentage • 3.38% ! Index • 108 o Packaging for products should be recyclable ! Population • 57,862,000 25
  26. 26. !Prefer Iams • 1,964,000 ! Percentage • 3.39% ! Index • 108 • Shopping Behavior o Usually Read Info On Label of Product ! Population • 86,472,000 ! Prefer Iams • 2,803,000 ! Percentage • 3.24% ! Index • 104 o My kids have a significant impact on the products I buy ! Population • 45,152,000 ! Prefer Iams • 1,571,000 ! Percentage • 3.48% ! Index • 111 Profile of Target Audience: The general profile of the target audience is Males and Females ages 18-64. They are typically white and are very family orientated. This target audience also predominantly makes a good amount of money and lives comfortably. They seem to be involved with all media types and primarily like comedy in media. The majority of Iams purchasers commute to work, which increases their susceptibility to outdoor advertising. Also, they are intelligent do to the fact that most have graduated college or more. The target audience gives the impression that they look into the products that they are buying and have knowledge of the products they are purchasing. To conclude, the majority of Iams users live in the Western-Midwestern parts of the United States. 5. Timing/Purchase Cycle • Time of the day o Purchasers of Iams dry dog food tend to shop most from 7:00 AM-9:00 AM and from 1:00 PM-6:00 PM 26
  27. 27. • Days of the Week o They also prefer to shop on Sundays, Tuesdays, Fridays, and Saturdays. • Another important note is that Purina purchasers tend to shop more with their families. Source (Simmons Choices 3: NCS Fall 2001 Full Year POP) Purchase Cycle For the most part, dry dog food is purchased on a regular basis. Depending on the bag size, purchases of dog food can range from monthly to bimonthly (Mediamark Research). The recommended serving size of dry dog food is based on age and weight of the animal. Because dog food is served in a consistent and regimented manner, sales of the food remain steady year-round and do not vary according to seasons. According to Mediamark Research Inc., dog ownership has a high concentration in the West Central, Southeast, Southwest, and Pacific regions of the United States. Heaviest Advertising and Promotion Period Promoting a product such as pet food typically does not see a significant change in advertising through out the year. However, Iams advertising is more heavily promoted during big events such as dog shows. Iams spokesman, Kurt Iverson says that, “dog shows are an important place for us to be.” Promoting their products during dog shows such as the Eukanuba National Championship not only endorses their brand at the show, but is also an opportunity for the company to advertise throughout the televised event. Iverson also points out the importance of online promotion. He states that, “You can just do more online than you can with a TV commercial.” # Miller, Alex. quot;Market Focus: Calling All Pets.quot; OMMA. Apr. 2005. < 4J:publications.mediapost.com/index.cfm%3Ffuseaction%3DArticles.showArticl e%26art_aid%3D28777+puppy+bowl+advertising+iams&hl=en&ct=clnk&cd=1 &gl=us>. Sales/Usage peak In 2004 Iams was losing sales, so they loaded 3,000 truck loads in the midwest to increase distribution of their product in over 25,000 mass retail outlets to try and peak/increase sales. By increasing their distribution, nearly overnight their sales we’re doubled. Also by unleashing new food brands of Iams within the increased distribution aimed at lengthening pets’ lives, weight loss, antioxidants and blends and tartar fighting; people bought Iams right and left, increasing sales drastically worldwide up to $1.6 billion the highest yet. (http://www.timeinc.net/fortune/conferences/innovation2006/images/fortunearticles/p_an d_g.pdf) 27
  28. 28. Creative Strategy Creative Problem In the past, Iams has developed as well as damaged its own brand identity. For many years, Iams has been praised for world-class quality food products that provide proper nutrition and promote healthy lifestyles for pets. The Iams Company is world renowned and distinguished for their specialty foods and recipes, but recent recalls on their dog food products have caused public distress. The recalls and resulting doubts have led consumers to question the Iams brand. Iams also faces a problem with targeting their wide variety of users and age groups around the nation in the process of choosing media vehicles and advertisements intended to attract as the most people with the smallest amount of money. This creative strategy attempts to reiterate the quality of Iams dry dog food in order to increase sales while attracting as much of our target audience as possible to keep the Iams brand fresh in their minds. Advertising Objective The objective of this creative campaign is to forecast and create a better future for the Iams Company. The campaign strategy aims to promote the benefits of healthy eating for dogs and therefore attract consumers to buy Iams for their petss. A second objective aims to enhance the Iams image and rebuild brand loyalty with proper ad placement and appeal. Positioning Statement Iams is currently positioned to reassure pet owners that all its non-recalled foods are safe. While working with the same mentality, this campaign stresses the most important characteristic of their brand identity, healthy food products for pets. In reiterating Iams distinguished position, we will aspire to regain the support of brand loyal customers while displaying a clear message to dog owners around the nation. By reinforcing this position as a high-end, veterinary-recommended food, we aspire to create a positive picture of the Iams Company through creative advertisements and powerful messages. Tone/Theme line/Slogan The tone of this campaign will be simply displayed and understood. The advertisements are clear cut and insinuate a humorous connotation which can be easily understood by our target audience ages 18-54. The overall theme promotes dogs being considered part of the family in receiving the same adequate nutrition as humans. The campaign will aim to attract our 18-54 year old audience who actively participate in outdoor and social activities and ultimately aspire to provide a healthy and nutritious lifestyle for their families. 28
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  32. 32. Promotions The Iams Company promotions are targeting the 18-54 year-old age group around the nation but specifically in locations in the South and West. The promotional strategies intend to attract our social, active and energetic consumers who tend to be impulse buyers. Our researched demographics and psychographics have found the characteristics of our target audience to buy products without much thought other than convenience. Both of the promotions created for this campaign are conveniently positioned and executed for consumers while posing a lot of potential for Iam’s sales to rise as a result. The promotions are estimated to cost around five million dollars which is very likely to account for more than enough needed to promote the Iams brand and its loyalty to consumers. “Double Your Deal” The regional promotion, “Double You Deal” will premiere in September of 2007 and will remain valid until October. The strategy distributes an in-store promotion around the nation in our regional spot markets. This promotion will give people who shop in retail stores throughout the nation, a chance to receive two 4 lb. bags of Iams dry dog food for the price of one 4 lb. bag of equal or lesser value. The promotion will be displayed in the pet food isle of retail stores and will be executed on a peel-off coupon. The convenient peel off display will allow our convenience seeking, impulse buyers to quickly get in and out of the pet food isle while saving money at the same time. “Two Good” The second regional promotion will begin in February of 2008 and remain valid until March. This promotion targets our entire target audience ages 18-54 who have been found to own at least one dog and therefore they are the ones most likely to buy the food for their pets. The promotion will be executed on each bag of Iams dry dog food, displaying a different number/letter combination code on each bag. Directions on the bag will instruct consumers to type their personal code into a website displayed at www.iams.com. In satisfying our consumers, winners will know if they won immediately upon entering their code. This promotion allows every customer that buys a bag of Iams dry dog food to have a chance at winning a grand prize along with chances to win many other prizes, complimentary of The Iams Company. The grand prize includes a five day four night family vacation all expense paid trip to an Orlando park of choice. The winner gets to treat their family to a fun filled vacation including air fare, hotel accommodations and spending cash. This promotion intends to attract impulse buyers with an incentive to choose Iams dry dog food simply for the promotion displayed on the front of the dog food bag. 32
  33. 33. Along with the grand prize, Iams will give away various other prizes to consumers who take advantage of their personal code on the bag. Two Apple I-book computers will be given to two lucky winners rewarding them with this high-tech piece of technology will benefit our active and energetic audience with more a convenient and light weight laptop and high speed internet. Six other lucky winners will receive a conveniently light weight i-pod nano in a color of their personal choice which benefits our once again active and energetic audience who enjoy working out and exercising outdoors. Ten other winners will receive free Iams dry dog food for two months of their choice which benefits our consumers in conveniently delivering the food to their homes, saving them time and money to enjoy however they please. 33
  34. 34. “Double Your Deal” Promotion 34
  35. 35. “Too Good” Promotion 35
  36. 36. Media Objectives, Rationales & Strategies Target Audience Objective: The objective of this year –long Iams campaign is to reach adults ranging in ages18-54 who own at least one dog with strong emphasis on family oriented activities. Our goal is to target Iams users across the country with special importance on the South and West regions by building brand loyalty as well as generating new customers. Demographic Profile: • Males and Females 18-54 years of age, mostly with families • Owners of at least one dog • Live within the United States, specifically the South and West regions Psychographic Profile: • Very active; prefer to exercise and play sports often • Above average impulse shoppers and tend to be brand loyal • Risk takers, optimists, and prefer to enjoy life • Enjoy all types of concert events and are very sociable • Occasionally like to entertain within their home • Receptive to advertising, and involved in most media types • Travel up to 40 miles per week by car, truck or van for various different reasons Strategy: Both offensive and defensive strategies will be used to proficiently reach our target audience. While some of the selection of our target audience is defensive, we are taking a more offensive strategy by focusing on people that do not prefer Iams. This campaign will follow a flighting media throughout the year by scheduling no advertising in the months of December and April. 36
  37. 37. Rationale: Dog owners are heavy populated within the South and West regions of the United States. Both males and females are dog owners with 18-54 year olds making up the large quantity of the dog food purchasing market. Through research generated by Simmons data, we discovered that our target audience relies largely on television to keep them informed. Index numbers indicated that they are most likely to watch television during the sweeps months of February, May, July and November. Big television sports such as college football, basketball as well as NFL, NBA and Major League Baseball are heavily watched by our target audience. Cable channels such as MTV, Disney, Animal Planet and the Cartoon Network also are likely to be watched. Individuals within our target audience enjoy reading Men’s and Women’s magazines. Some favorites include; Vogue, ESPN, and Sports Illustrated. Radio is listened to by our target audience mainly during the morning (6:00am-10am) and evening (7pm-12am) drives. Ostrow Model Part I: Marketing Factors that Affect Frequency Established Brand? -.2 High Market Share? -.1 Dominant Brand? -.1 High Brand Loyalty? -.1 Long Purchase Cycle? -.2 Product Used Occasionally? +.2 Need to Beat Competition? +.2 -.3 Part II: Copy Factors that Affect Frequency Simple Copy? -.1 Copy More Unique than Competition? +.1 Continuing Campaign? +.1 Products Sell Copy? +.1 Single Kind of Message? -.1 To Avoid Wear out: New Messages? -.1 Larger Ad Units? -.1 -.2 Part III: Media Factors that Affect Frequency Lower Ad Clutter? +.2 Compatible Editorial? +.1 Attentiveness High? +.1 Continuous Advertising? +.1 Few Media Used? +.2 Opportunities for Media Repetition? -.2 +.5 37
  38. 38. Results -.3 -.2 +.5 0 + 3.0 = 3 Target Reach for each month is 3 REACH/FREQUENCY/GRP GOALS From the Ostrow Model, our base frequency is 3.0. Since Iams is already an established brand and we are using a predominantly offensive strategy, therefore we chose a moderate reach of 70 for the baseline of each month. With this data a minimum of 210 GRP’s are needed per month. Goals By Month: July: 75 Reach and 3 Frequency – 225 GRP’s (National) August: 75 Reach and 3 Frequency – 225 GRP’s (National) September: 85 Reach and 4 Frequency – 340 GRP’s (National); 90 Reach and 5 Frequency – 110 GRP’s (Spot Markets) October: 85 Reach and 4 Frequency – 340 GRP’s (National); 90 Reach and 5 Frequency – 110 GRP’s (Spot Markets) November: 80 Reach and 3 Frequency – 240 GRP’s (National) December: No Advertising this month January: 75 Reach and 3 Frequency – 225 GRP’s (National) February: 85 Reach and 4 Frequency – 340 GRP’s (National); 90 Reach and 5 Frequency – 110 GRP’s (Spot Markets) March: 85 Reach and 4 Frequency – 340 GRP’s (National); 90 Reach and 5 Frequency – 110 GRP’s (Spot Markets) April: No Advertising this month May: 75 Reach and 3 Frequency – 225 GRP’s (National) June: 75 Reach and 3 Frequency – 225 GRP’s (National) 38
  39. 39. GEOGRAPHY Spot markets: A majority of the advertising budget went to national advertising. This was done mainly to persuade those who do not necessarily prefer Iams across the whole country to purchase more Iams dry dog food. As seen above there are several spot markets we chose to advertise in. The ones in blue are states with high densities of dog owners that do not prefer Iams and the states in red consist of heavy Iams users. We targeted the states with heavy Iams users to support our defensive strategies to retain those who prefer Iams. The top cities targeted in the red states consisted of: Los Angeles San Diego Seattle The top cities targeted in the blue states consisted of: Dallas Baltimore Atlanta Detroit 39
  40. 40. CHART A: shows the amount of spending on national and spot advertising National/Spot Spending 11% National, $48 million Spot, $6 Million 89% As shown above the $48 million went to National Advertising making up 89% of the total Budget. Spot advertising ended up at $6 million, which comes to 11% of the total budget. Again, we felt that it was necessary advertise just enough in the spot markets to keep Iams customers and to add some extra advertising on the markets with high dog ownership. Media Plan Schedule and Budgeting Media Plan Schedule: Iams dry dog food is a product bought daily and does not have a significant drop or rise at certain times of the year. Therefore, we chose to advertise throughout most of the year using a flighting media plan. The main focus of our media plan is our promotions so during those months we advertised the heaviest both nationally and in spot markets. 40
  41. 41. CHART B: the monthly GRP levels of our campaign year Monthly GRP's (National and Spot Markets) 600 500 400 GRP's Spot 300 National 200 100 0 J ASOND J FMAMJ Months July-June (2007-2008) July – August: During the months of July and August we chose to start off our media plan by advertising just enough to keep the Iams brand name out in the open and to introduce the slightly new creative message to the public nationally. During these months we chose to advertise the most on cable television, morning drive radio, and mens/womens magazines. These were emphasized because our target audience uses these mediums the most during this time of year (Simmons). September – October: September and October are two of the months advertised on heavily because our first promotion runs during them. We chose to advertise both nationally and in our spot markets during the promotional months. Through our research in Simmons we found that 41
  42. 42. our target audience watches all types of sports programs, with a heavy emphasis on Football and Basketball (both pro and college). Due to the start of the NFL season and the end of the MLB year, we decided to advertise the most on Sports TV programs. Also, during our promotional months we will use outdoor advertising as a medium to draw more awareness from our spot markets. This will create a huge awareness for our coupon promotion. Since our target audience generally shops on impulse than the coupons will help to further influence people to purchase Iams dry dog food. November: November follows our promotional months and we feel it is still necessary to advertise during this month, but not as much as the previous promotional months. Again we chose to advertise the most on Sports TV programs and also on Cable television due to the increased TV viewing in the winter months (Simmons). January: During January we decided not to advertise too heavily but to focus most of the advertising money budget on sports again due to the NFL playoffs. Also, our next promotion is during the following months, so we need the money to advertise heavily. February – March: During February and March we are going to run our second promotion. This promotion has Iams purchasers type in a code on the internet to see if they will win a variety of different prizes. We feel that this is an excellent way to get users to go to our site on the internet, which basically gives us the ability to further advertise to them on our website. Also the Superbowl and NCAA March Madness are during these months so we will heavily advertise on Sports TV programs. Also, during these promotional months we will use outdoor advertising as a medium to draw more awareness from our spot markets. May – June: Through May and June we decided to advertise moderately again, but enough to keep the Iams brand name in our Target Audience’s mind. Also, our target audience is less receptive to most media types during this time of the year so we felt it was necessary to advertise less. December and April: We decided not to advertise in these months primarily because they follow our large promotional months. We feel that advertising in these months was unnecessary after months with such heavy advertising and we needed to save money. Also, December is a month were people focus more on the holidays and other types of products besides dog food. 42
  43. 43. CHART C: shows the advertising expenditures of each month Monthly Spending (National and Spot Markets) 10000 8000 $(000) 6000 Spot Markets 4000 National 2000 0 JASONDJFMAMJ Months July - June (2007 - 2008) Most of our budget was used in September, October, February, and March. Again, this is because our promotions ran during these months and we advertised in our spot markets. Media Used Television: A majority of our budget allocated will be spent on television, both nationally and in spot markets. Nationally we are advertising through cable television during times on early fringe, primetime, and late fringe. We will be advertising during all months, and focus on those during promotions and during the four Sweeps Months of February, May, July, and November. In the spot markets in the South and West advertising will be mainly focused during the primetime hours. Overall we chose this form of media because our target audience likes to be highly entertained with comedy shows, reality shows, family oriented and children shows, and sports programs. Big TV sports programs are the most watched by our audience so we will advertise mainly during college and NFL football games, college and NBA basketball games, college and Major League baseball games, etc. We will also be advertising on channels such as: Animal Planet, Cartoon Network, MTV, and Disney. 43
  44. 44. Radio: Nationally we are advertising for radio every month except for April and December. We advertised mainly during the morning and evening drives because we found that was the main times our audience was tuned in. In our spot markets we targeted specific radio stations in the South and West due to our target audience traveling a lot in those areas. Magazines: Both Men’s and Women’s Magazines are very popular with our target audience. We discovered that they love to read and like to always be entertained, making reading one of many entertainment purposes. We used more of our budget towards men’s magazines however, because we found the audience slightly prefers men’s magazines versus women’s and also due to larger index numbers. We will be advertising in a few of the following men’s magazines such as: Men’s Health, ESPN, and Sports Illustrated. A few of the women’s magazines we will use for advertising are: Vogue and Working Mother. Outdoor: During our major months of September, October, February, and March we will be nationally as well as spotting in the South and West, advertising via Outdoor billboards. We feel this will catch our target audience because are heavy drivers. This will also be good for high exposure. Internet: We will be using the smallest portion of our budget towards Internet advertising. The Internet will mainly be tied in with our two promotional ideas for the trip to Orlando, Florida and the Iams coupons. While both promotions will be running, our target audience will be able to voluntarily log-on to the internet and through our Iams website and enter the promotional codes to see if they have won. As stated this will be completely voluntarily so the advertising will basically be free. 44
  45. 45. CHART D: the GRP’s received by each media type. Net TV-Sports GRP's by Media Type Net Cable-E Fringe Net Cable Prime 600 Net Cable-L Fringe Net Radio-Morn. Drive 500 Net Radio Daytime 400 Net Radio-Eve. Drive GRP's 300 Magazines Mens Magazines Womens 200 Spot TV-Prime 100 Spot Radio-Morn Drive 0 Spot Radio-Daytime Spot Radio-Eve Drive CHART E: shows the GRP’s of Spot and National Advertising National/Spot GRP's 485 National Spot Markets 3282 45
  46. 46. Overall Budgeting Our overall budget was $60 million. $5 million went towards our promotions (Creation and Execution) and $55 million went to advertising throughout the year. CHART F: shows the money spent on National and Spot Advertising Area Amount of Money Spent National Only $48,053,100 Spot Only $5,790,100 Total $53,843,200 CHART G: shows the amount of money spent on each media type Media Amount of Money Spent Net TV-Sports $17,056,500 Net Cable-Early Fringe $3,490,600 Net Cable-Prime $8,579,600 Net Cable-Late Fringe $3,766,600 Net Radio-Morning Drive $1,764900 Net Radio-Daytime $100,300 Net Radio- Evening Drive $1,406,800 Magazine- Men $7,227,600 Magazine- Women $4,310,200 Spot TV-Prime $1,520,500 Spot Radio-Morning Drive $441,800 Spot Radio-Daytime $197,000 Spot Radio- Evening Drive $395,300 Total $53,843,200 With a leftover budget of $1,156,800 we can use that towards our promotions for more prizes, or add on some last minute spots on certain mediums. We exceeded all of our goals and will use what is left over wisely. Gross Impressions: Total Target Audience(18-52, males/females) = 148,000,000 Total GRP’s = 3,767 Total Gross Impressions = 5,575,160,000 46
  47. 47. Media Flow Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Total Chart Medium Net TV-Sports 35 32 65 70 50 55 55 70 35 40 GRPs: 507 $(000) 1,177.5 1,076.5 2,186.7 2,354.9 1,682.1 1,850.3 1,850.3 2,354.9 1,177.5 1,345.7 Cost: 17,056.5 Net Cable-E 40 45 55 55 25 30 50 55 50 40 GRPs: 445 Fringe $(000) 313.8 353.0 431.4 431.4 196.1 235.3 392.2 431.4 392.2 313.8 Cost: 3,490.6 Net Cable-Prime 45 45 45 50 35 35 50 45 45 45 GRPs: 440 $(000) 877.5 877.5 877.5 975.0 682.5 682.5 975.0 877.5 877.5 877.5 Cost: 8,579.6 Net Cable-L 50 50 50 55 45 40 55 55 50 40 GRPs: 490 Fringe $(000) 384.4 384.4 384.4 422.8 345.9 307.5 422.8 422.8 384.4 307.5 Cost: 3,766.6 Net Radio- 35 50 60 55 40 30 60 55 30 30 GRPs: 445 Morning Drive $(000) 138.8 198.3 238.0 218.1 158.6 119.0 238.0 218.1 119.0 119.0 Cost: 1,764.9 Net Radio- 25 GRPs: 25 Daytime $(000) 100.3 Cost: 100.3 Net Radio- 35 35 55 50 30 30 55 50 30 30 GRPs: 400 Evening Drive $(000) 123.1 123.1 193.4 175.9 105.5 105.5 193.4 175.9 105.5 105.5 Cost: 1,406.8 Magazines-Mens 25 25 50 40 20 15 45 45 20 15 GRPs: 300 $(000) 602.3 602.3 1,204.6 963.7 481.8 361.4 1,084.1 1,084.1 481.8 361.4 Cost: 7,227.6 Magazines- 15 15 45 35 15 10 40 40 15 GRPs: 230 Womens $(000) 281.1 281.1 843.3 655.9 281.1 187.4 749.6 749.6 281.1 Cost: 4,310.2 Internet-Trgtd Yes Yes Yes Yes GRPs: 4 Sites Imps/Mo $(000) 87.5 87.5 87.5 87.5 Cost: 350.0 Spot TV-Prime 20 30 40 10 GRPs: 100 $(000) 304.1 456.2 608.2 152.1 Cost: 1,520.5 Spot Radio- 40 40 35 35 GRPs: 150 Morning Drive $(000) 117.8 117.8 103.1 103.1 Cost: 441.8 Spot Radio- 25 20 20 20 GRPs: 85 Daytime $(000) 58.0 46.4 46.4 46.4 Cost: 197.0 Spot Radio- 40 40 35 35 GRPs: 150 Evening Drive $(000) 105.4 105.4 92.2 92.2 Cost: 395.3 Outdoor 1327 1327 1327 1327 GRPs: 5308 $(000) 808.9 808.9 808.9 808.9 Cost: 3,235.6 National Only 280 297 425 410 285 245 410 415 275 240 GRPs: 3,282 Area* 3,898.3 3,896.1 6,359.3 6,197.7 4,034.0 3,848.8 5,992.9 6,401.8 3,906.4 3,517.7 Cost: 48,053.1 GRPs 79.7 80.7 87.4 86.5 80.4 75.7 86.9 86.9 78.8 74.7 $(000) 3.5 3.7 4.9 4.7 3.5 3.2 4.7 4.8 3.5 3.2 Reach Avg. Freq. Spot Only 125 130 130 100 GRPs: 485 Area* GRPs 1,394.2 1,534.6 1,658.8 1,202.6 Cost: 5,790.1 $(000) 52.6 55.6 57.8 45.5 Reach 2.4 2.3 2.2 2.2 47 Avg. Freq. National+Spot*
  48. 48. Year at a Glance Reach Avg Freq GRPs $(000) Goal Est. Goal Est. Goal Est. Diff. Goal Est. Diff. 75.0 79.7 3.0 3.5 225.0 280.0 55.0 3,910.0 3,898.3 11.6 July 75.0 80.7 3.0 3.7 225.0 297.0 72.0 3,910.0 3,896.1 13.8 August September 90.0 91.8 5.0 6.0 450.0 550.0 100.0 7,819.9 7,753.4 66.5 90.0 91.6 5.0 5.9 450.0 540.0 90.0 7,819.9 7,732.3 87.6 October November 80.0 80.4 3.0 3.5 240.0 285.0 45.0 4,170.6 4,034.0 136.6 December 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 75.0 75.7 3.0 3.2 225.0 245.0 20.0 3,910.0 3,848.8 61.1 January February 90.0 92.0 5.0 5.9 450.0 540.0 90.0 7,819.9 7,651.6 168.3 90.0 90.9 5.0 5.7 450.0 515.0 65.0 7,819.9 7,604.4 215.5 March 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 April 75.0 78.8 3.0 3.5 225.0 275.0 50.0 3,910.0 3,906.4 3.5 May 75.0 74.7 3.0 3.2 225.0 240.0 15.0 3,910.0 3,517.7 392.2 June TOTAL 3,165.03,767.0 -602.0 55,000.053,843.2 1,156.8 National Contingency $(000) 0.0 Spot Contingency $(000) 0.0 Goals Summary Est. National Plan Reach Freq. GRPs Share $(000) July 75.0 3.0 225.0 7.1 3,910.0 August 75.0 3.0 225.0 7.1 3,910.0 September 85.0 4.0 340.0 10.7 5,908.4 October 85.0 4.0 340.0 10.7 5,908.4 November 80.0 3.0 240.0 7.6 4,170.6 December 0.0 0.0 0.0 0.0 0.0 January 75.0 3.0 225.0 7.1 3,910.0 February 85.0 4.0 340.0 10.7 5,908.4 March 85.0 4.0 340.0 10.7 5,908.4 April 0.0 0.0 0.0 0.0 0.0 May 75.0 3.0 225.0 7.1 3,910.0 June 75.0 3.0 225.0 7.1 3,910.0 48
  49. 49. National Media 2,725.086.1 47,353.9 National 0.0 Contingency Total National 47,353.9 Spot Plan Reach Freq. GRPs * Share Est. $(000) July 0.0 0.0 0.0 0.0 0.0 August 0.0 0.0 0.0 0.0 0.0 September 90.0 5.0 110.0 3.5 1,911.5 October 90.0 5.0 110.0 3.5 1,911.5 November 0.0 0.0 0.0 0.0 0.0 December 0.0 0.0 0.0 0.0 0.0 January 0.0 0.0 0.0 0.0 0.0 February 90.0 5.0 110.0 3.5 1,911.5 March 90.0 5.0 110.0 3.5 1,911.5 April 0.0 0.0 0.0 0.0 0.0 May 0.0 0.0 0.0 0.0 0.0 June 0.0 0.0 0.0 0.0 0.0 Spot Media 440.0 13.9 7,646.1 Spot Contingency 0.0 Total Spot 7,646.1 Total Plan 55,000.0 49
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  51. 51. quot;Iams Research: ASPCA Statement on the Relationship Between Iams and the ASPCA.quot; ASPCA. 12 Oct. 2004. <http://www.aspca.org/site/PageServer?pagename=about_iams_statement>. quot;Overview of the Dog and Cat Food Industry.quot; Petfood Overview. June 2004. <http://www.ita.doc.gov/td/ocg/petfood_overview04.pdf>. quot;Our Company.quot; Purina. Mar. 2007. <http://www.purina.com/company/index.aspx>. quot;Purina Brands.quot; Purina. <http://www.purina.co.uk/index.asp?frame=/brands.asp&brandId=17>. quot;The Leaders in Pet Nutrition and Innovation.quot; Hill's. 2007. <http://www.hillspet.com/zSkin_2/index.jsp?FOLDER%3C%3Efolder_id=14084743 95181164&bmUID=1173154101535&bmLocale=en_GB>. quot;Hill's Pet Nutrition, Inc.quot; Hill's. 2007. <http://www.answers.com/topic/hill-s-pet- nutrition-inc>. quot;Dry.quot; Pedigree. 2007. <http://www.pedigree.com/dogproducts/dry.asp>. quot;List of Wal-Mart Brands.quot; Ol' Roy. 29 Apr. 2007. <http://en.wikipedia.org/wiki/Ol%27_Roy>. Kibbles 'N Bits. 2007. <http://www.kibblesnbits.com>. quot;Nutro Products, Inc.quot; Nutro Products. 2007. <http://www.answers.com/topic/nutro- products-inc>. Nutro. 2007. <http://www.nutroproducts.com/>. quot;Iams Under Fire of False Advertising Again.quot; Uncaged. <http://www.uncaged.co.uk/news/2002/asa2.htm>. Choices 3, Simmons Database(2002), Full Year Population 51