Your SlideShare is downloading. ×
Nestle Purina Fiesta Marketing Plan (Revised)
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×

Introducing the official SlideShare app

Stunning, full-screen experience for iPhone and Android

Text the download link to your phone

Standard text messaging rates apply

Nestle Purina Fiesta Marketing Plan (Revised)

3,136
views

Published on

MKGT 5000 Marketing …

MKGT 5000 Marketing
1 December 2011


0 Comments
1 Like
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total Views
3,136
On Slideshare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
97
Comments
0
Likes
1
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1.     Marketing Plan: Nestle Purina Beneful Fiesta Fran Morales-Neufeld Professor Drew Stevens MKGT 5000 Marketing 1 December 2011   M o r a l e s -­‐ N e u f e l d   Page  1    
  • 2. Table of Contents Marketing Plan: Nestle Purina Beneful Fiesta .................................................................... 1 Executive Summary .................................................................................................................... 3 Current Market Situation (Market Description) ......................................................................... 4 Target Market Selection: 4Gs .................................................................................................... 6 PEST Analysis ............................................................................................................................ 7 Market Mix: 4Ps ....................................................................................................................... 10 Situation Analysis (SWOT) ...................................................................................................... 13 Competition............................................................................................................................... 13 Marketing Strategy.................................................................................................................... 15 Objectives ................................................................................................................................. 15 Promotional Strategy ................................................................................................................ 16 Budget .......................................................................................................................................... i Appendix ...................................................................................................................................... i   M o r a l e s -­‐ N e u f e l d   Page  2    
  • 3.     Executive Summary Nestle Purina PetCare is a multimillion dollar global company headquartered in St. Louis. The company’s key focus is on health and nutrition for pets. Nestlé Purina PetCare Company’s goal is to lead with fresh, innovative approaches to making the lives of dogs and cats better through constantly exploring new trends and ideas that define the future of pet care and of Nestlé Purina (“Nestlé Purina PetCare: Creating Shared Value”). One of 40 Nestle Purina brands offered in the United States, Purina Beneful Dry Dog Food has created a new Healthy Fiesta blend that targets U.S. Hispanics and their Latino dog. Healthy Fiesta provides balanced nutrition to help keep your dog happy and healthy. Healthy Fiesta is made with wholesome ingredients like omega-rich nutrition accented with avocado, real chicken rich in protein, rice that’s packed with carbohydrates for energy, antioxidants, carrots and tomatoes for vision support and immune system support (Beneful.com). In response to the growing Hispanic demographic here in the U.S., Nestle Purina PetCare Company introduced the Spanish-sounding brand to target this market segment in September with the commercial dubbed “Pool Party” but after making several attempts to reach out to the overall Hispanic demographic the reception to the brand fell flat. Nestle Purina wants to re-adapt the Healthy Fiesta brand’s attributes in a culturally relevant manner to reach the market segment at an emotional and intellectual level (Bauza & Associates). Healthy Fiesta wants man’s best friend to share similar traits to its owner. We will research local environments, cultures, and any details specific to each subgroup to capture the tonality and expression — in other words — language that speaks to this audience. The company will re-launch the Healthy Fiesta brand in January 2012 to appeal to the Latino dog. For our 2012 Healthy Fiesta marketing plan, we will test the product’s success and   M o r a l e s -­‐ N e u f e l d   Page  3    
  • 4. message targeting individual demographics — Caribbean and Latin American communities — in the New York Tri-State area. We want to transcreate our message to creatively adapt marketing, sales, and advertising collateral in the target language. What is the benefit of catering to the market? v Hispanics now account for the largest minority in the U.S. While Hispanics are distinct from the majority, they are diverse within as well — meaning they are not homogenous — in other words, there are many markets to target within the Hispanic population. v Hispanic buying power is expected to rise to over $1 trillion by 2010, representing 9.2 percent of the entire U.S.’ buying power. v U.S. Hispanics overall prefer bilingual signage and appreciate culture-based marketing. Current Marketing Situation (Situation Analysis) According the New York City Department of Health and Mental Hygiene, Hispanics are more likely than whites or blacks to own dogs. Hispanics are also drawn to canines that strongly identify with their personalities. From spunky Chihuahuas in Spanish Harlem to tough Rottweilers and mix breeds in the South Bronx, these furry companions provide safety, security and friendship (Saulny, Susan “New York’s Top Dog? It Depends on the Zip Code”). Dogs who live in the city and live with Hispanic families are often socialized really well. They like their owners, are aware of whom they are — they are streetwise, spunky, intelligent, and bilingual.   M o r a l e s -­‐ N e u f e l d   Page  4    
  • 5.     Nestle Purina PetCare company launched the Healthy Fiesta brand this September to appeal to the Latino dog. While this was a good first attempt at targeting and appealing to the Hispanic market, its aim was too broad and as a result the response fell flat. The “Pool Party” commercial, which included Puerto Rican leading man, Eddie Matos hugging it out and doing a pool dive with his four-legged best friend, was not embraced by the Hispanic community. The viral campaign also did not have legs to become a success with a disappointing 150 views — of that 25 viewers “liked” the commercial (click here to see YouTube video). In other words, the commercial was not enough to make Hispanics want to rush out and buy a bag for their family perrito. Thus in order to provide customer value, we must identify who is our target market. Through extensive market research we found that there are subgroups within the Hispanic segment and that they — Hispanics — are generally hard working and family oriented. Hispanics are very diverse and congregate in different pockets throughout the U.S. New York has a very high concentration of U.S. Hispanics, approximately 17.6 percent of the nearly 19.3 million people with the Bronx being by far the most Hispanic borough (2010 U.S. Census, Quick Facts). Thus to monitor the success of the Healthy Fiesta brand, we’ve chosen New York as a sample region to test the campaign before it goes national. As part of Purina Beneful Dry Dog food developed by Nestle Purina PetCare Co., Healthy Fiesta provides balanced nutrition to help keep the New York dog happy and healthy. Dog owners want their canines to eat what they eat. The Healthy Fiesta blend provides the product with a Latino twist that includes wholesome ingredients like real chicken, rice, carrots, and tomatoes with hints of avocado (Beneful.com).   M o r a l e s -­‐ N e u f e l d   Page  5    
  • 6. As a test market, the company will strategically distribute the Healthy Fiesta products to highly concentrated urban areas where Hispanics reside. The following Market Description specifies the market, product performance, competition, and distribution in this test market. Market Description Target Market Selection: To sample the success of the brand, Healthy Fiesta will be marketed and distributed to the Tri-State Area, specifically the boroughs of New York. The Healthy Fiesta product will be available in accessible bodegas and mega stores such as Pathmark, Shop Rite, Wal-Mart, and Target Stores where there are high concentrated number of Hispanics in the following geographic areas: • Manhattan • Bronx • Queens • Staten Island • Long Island • Brooklyn In keeping with Nestle Purina PetCare Co. mission to improve the lives of dogs through quality nutrition and care, Healthy Fiesta maintains its core philosophies including but not limited to the following: • Promoting responsible pet care • Humane education • Community involvement   M o r a l e s -­‐ N e u f e l d   Page  6    
  • 7.     • Positive bond between people and their pets Nestle Purina’s key focus is to build and maintain trust with its consumers and stakeholders. With its credible reputation, it continues to work to earn that trust providing that expertise in nutrition and quality brands. This marketing campaign aims to build that trust with Hispanics in the Tri-state region. There are several factors, including environmental forces outside marketing that affect the marketing management’s ability to build and maintain the successful relationship with this consumer base (Armstrong, Gary and Kotler Philip 66). From a micro-environmental perspective, the company must adapt to the changing marketing segments to appeal to the wants and needs of this booming demographic. In 2010 the U.S. Census reported that Hispanics were the dominant consumer group in the U.S. and their growth has impacted political landscape, retail business and every day lifestyles nationwide. Communication, recognition, and identity are the main ingredients for retaining and maintaining the relationship with Hispanics. But connecting with Hispanics is complex. Cultural factors, such as language and length of time in the U.S. as well as local and every day factors such as shopping at grocery stores or the roads traveled to get to work are just some of the necessary details that impact marketing strategy. This means its suppliers, marketing intermediaries, etc. have to do their part in keeping this consumer segment happy, fulfilling their wants and needs as pet owners. From a macro-environmental perspective, there are larger societal forces that affect the microenvironment of this group, such as demographic, economic, society, technology, politics, and cultural forces (Armstrong, Gary and Kotler Philip 67). The following PEST analysis lists these factors.   M o r a l e s -­‐ N e u f e l d   Page  7    
  • 8. • Political: Laws, government agencies, and pressure groups that influence and limit various organizations and individuals in a society (Armstrong, Gary and Kotler Philip 83). There are no limitations in these subgroups as majority of these Hispanics are U.S. born and have assimilated to the American culture and norms. • Environment: Large portion of these subgroups live in urban city apartment complexes and are heavily dependent on subway transportation. Communities in which they inhabit are tightly knit communities where bilingual messages are constant. In most cases Spanish-language is mostly dominant. New York is in a top-tier market, which means higher cost for ads, however there are multiple opportunities for a wider reach. • Societal: Communities in the Tri-State region embrace ethnic heritage and American culture. These communities have also converged with other ethnic groups creating a melting pot. These groups mixed together with Hispanic ethnic groups have retained and value important ethnic and cultural differences (Armstrong, Gary and Kotler Philip 76). Overall, the U.S.’ Hispanic population has grown 1.5 percent every five years and is now approximately 51 million people, or 15 percent of the population. As the Hispanic population continues to grow it will drive new community trends. For instance in the Tri- State region, retail stores, bodegas, grocery stores have tailored their message and look to appeal to the citys Hispanic communities using colorful window displays and images recognizable to Hispanics. A new study from the University of California titled Assimilation Tomorrow, demographers tracking the waves of immigrants from the 1990s based on those who came before found that foreign-born residents are integrating into mainstream American society at a rate that will see them achieve “great success” by 2030. For instance the number of Hispanics who speak English well is estimated to rise   M o r a l e s -­‐ N e u f e l d   Page  8    
  • 9.     from 57.5 percent to 70.3 percent. This means we can alter Healthy Fiesta brand in bilingual messages (Grey, Liana "Growing Hispanic Population Driving New Community Trends”). • Technological: In the digital arena, Hispanics represent both a fast growing population and a group that has embraced online video, mobile phones, tablets, and a number of other newer technologies faster than the general population (Winslow, George “NBC Plans Latino-Targeted Site”). A recent study conducted by the research firm Horowitz Associates, shows that about two thirds of all Hispanics or 66 percent view TV programming at least once a week on a computer, laptop or handheld device, a much higher rate than the 54 percent of the overall population or 47 percent of whites (Winslow, George “NBC Plans Latino-Targeted Site”). The study also found that Hispanics are digitally savvy, embracing the constant ever changing technology. For instance, the study found that 22 percent of Hispanics said they were more likely to weekly stream TV programming over a tablet — compared to 10 percent for whites or 13 percent for the general population. The study also found that 23 percent of Hispanics also stream and receive information and news through the use of cell phones compared to 16 percent for whites and 18 percent for the population as a whole (Winslow, George “NBC Plans Latino-Targeted Site”). Demographic Healthy Fiesta will create customer value and achieve profitable customer relationships properly marketing to U.S. Hispanics, particularly of Puerto Rican, Dominican, Cuban, and Latin American descent. The marketing campaign will appeal to predominantly second and third generations.   M o r a l e s -­‐ N e u f e l d   Page  9    
  • 10. • Age: 21-45 (Millenials and Gen Xer’s) • Gender: Male and Female • Family size: The Brand does not cater to any particular family size. • Family life Cycle: Brand does not cater to particular life cycle. • Income: $45,000 + • Occupation: Does not specifically target occupation. • Education: College-Educated • Religion: Hispanics are predominantly Christian • Race/Ethnicity: Hispanic o Nationality: Puerto Rican, Dominican, Cuban, Latin American Psychographics The Healthy Fiesta campaign will target this segment various ways included but not limited to social class, lifestyle, and personality characteristics, specifically middle class Hispanic urbanites that love city life. Nuyoricans and other Hispanic subgroups that live in the city are edgy and not afraid to take chances, always trying to reach the American dream. These city-goers love their dog in different ways. From walking their dog on the streets, to playing in the city park, this dog lives the lifestyle of its owner. It’s no surprise as Hispanics consider their pets part of the familia. Behavioral Being part of the family, Hispanics generally like to feed the dog well, or rather products that identify with their cultural heritage. They expect their furry companions to live a long and healthy life thus their food needs to also provide that longevity.   M o r a l e s -­‐ N e u f e l d   Page  10    
  • 11.     Marketing Mix: Four P’s The Healthy Fiesta brand has fine-tuned its tactical marketing tools — product, price, place, and promotion — to help produce a positive response from this target market. Product: Beneful Healthy Fiesta Dog Food (Made in U.S.) • 31.1 lb. bag; 7 lb. bag; 15.5 lb. bag; 3.5 lb. bag Price: • $5.99-$23.00 Product Details: • Healthy Fiesta provides balanced nutrition to help keep your dog happy and healthy, made with wholesome ingredients including festive accents of avocado and tomato. • Protein-rich nutrition, with real chicken, helps build strong muscles. • Wholesome rice, packed with carbohydrates for energy. • Antioxidant-rich nutrition, accented with carrots and tomatoes, helps support vision and a healthy immune system. • Omega-rich nutrition, accented with avocado, helps promote healthy skin and a shiny coat. Place: • Bodegas, Wal-Mart, Target, Price Rite etc., in urban areas where Hispanics generally congregate.   M o r a l e s -­‐ N e u f e l d   Page  11    
  • 12. Promotion: • Quality Initiatives: o Telemundo NYC Partnership o Community outreach through NYC Humane Society • Product Integration and 360 Marketing through the use of o Media: § 30-second ads to air during high rotation of novelas and morning shows in Spanish- language networks Univision and Telemundo. • Promotion: Concurso de La Mejor Mascota (to be aired during Telemundo’s morning show Levantate) o Social Media: Microsite on Telemundo details the benefits of the Healthy Fiesta brand. Web banners on main Telemundo website page will connect to Healthy Beneful website and the microsite. Microsite will include an interactive game, Disfrace tu Mascota where viewers can submit pictures of their mascotas — pets — and alter their image to make them look like their owners i.e. pearls on dog for instance. Viewers must fill out information so pictures can then be emailed to them. Home address requirement helps to send out coupons to viewers who submit information. o Traditional Media: Print and TV   M o r a l e s -­‐ N e u f e l d   Page  12    
  • 13.     § Cesar Millan will be the new face of Healthy Fiesta for 2012. In addition to co-creating and starring in “Dog Whisperer” on the National Geographic Channel, Millan has also co-authored three best selling books. His true claim to fame is his talent for handling dogs — specifically mix breeds. Aside from the generic commercials, Healthy Fiesta will also include 30-second vignettes where Millan will teach viewers to apply techniques for training and rehabilitation of their own dogs. Commercials and vignettes will include opening and closing logo placement. Print ads will be included in local NY Spanish- language newspapers and will include information to draw viewers to the website and microsite. o Earned media: Strategic Press Releases will spin positive stories about the campaign and its promotional contests. The image of Millan as spokesperson will also build brand awareness and add credibility. In partnership with Telemundo NYC, the campaign, specifically the announcement of Millan as spokesperson will garner coverage from Telemundo’s national variety show, Al Rojo Vivo. Situation Analysis The following is an overall evaluation of the Healthy Fiesta brand’s overall Strengths, Weaknesses, Opportunities, and Threats. The analysis will also provide details of the brand’s competitors and how the brand can differentiate itself. • Strengths   M o r a l e s -­‐ N e u f e l d   Page  13    
  • 14. o Product re-launch will receive attention o Healthy Fiesta contains real and natural nutrients for all lifestyle changes o Flavors identify with Hispanic heritage and dogs like taste o Cost is competitive • Weaknesses o First launch of product to target market failed to be innovative o Hasn’t built reputation like company brand o Brand loyalty is not strong o Brand image and presence not established o Reach was far too broad and did not identify, or speak to market segment § For example “Pool Party” commercial failed to connect with Hispanic consumer base • Opportunities o Promotional activities will garner attention and trust from market segment o Establish new identity that speaks to market segment o Cesar Milan new face of brand for 2012 will connect with second-third generation urban Hispanics o Use of social media will further reach target market • Threats o Persuading pet owners to switch dog food may be difficult o Many dog food competitors already identify their product as “great tasting” and “healthy” o Economic slowdown   M o r a l e s -­‐ N e u f e l d   Page  14    
  • 15.     Competition There are two competitors that stand out in this region: • Eukanuba o Market Position: Eukanuba aims to keep pets fit. o Strategies for product quality: Packaging for natural and fortified pet foods using graphics that highlight health benefits. o Pricing: $9-$52 o Distribution: PetCo and Petsmart Stores o Promotion: To differentiate their pet foods, treats and supplements from the growing ranks of competitors, Eukanuba pet food marketers are using distinctive package graphics that convey nutritional and natural qualities. • Pedigree o Market Position: Every dog deserves leading nutrition. In reality the corn- based kibble uses limited amount of meat and chicken by-products meals as its main sources of animal protein. o Strategies for product quality: Pedigree’s traditional advertising is recognizable to consumers. o Pricing: $9-$21 o Distribution: PetCo, Petsmart, Wal-Mart, Target o Promotion: High rotation of commercials solidifies retention and builds on ROI.     M o r a l e s -­‐ N e u f e l d   Page  15    
  • 16. Marketing Strategy: The goal of Healthy Fiesta is building on customer acquisition and retention of the brand to increase ROI. • Objectives: To increase Hispanic brand awareness by 10 percent and purchase power by double digits (Armstrong, Gary and Kotler Philip 76). • Promotional Strategy o Develop promotional campaign El Amor de tu Mascota. o Cesar Milan will be the face of Healthy Fiesta and this promotional campaign in 2012. Milan’s image can easily market to English and Spanish markets. o Healthy Fiesta commercials will include real people with their pets in the New York boroughs that speak to various cultural and urban identities. § Tactic: Commercials to be aired on Telemundo and Univision with Telemundo obtaining main promotional efforts. § Commercials need to portray real identities of people in test region. § Cesar Milan vignettes that offer advise on dog training with opening and closing logo placements. o Social media campaign will launch in same time frame as traditional media campaign. § Telemundo to provide Microsite for Healthy Fiesta in Spanish § To include web banners that also lead to main Healthy Fiesta website. § 15-second commercial teasers to promote Microsite and its function. § El Concurso Del Mejor Mascota: Part of web campaign, where viewers submit photos and videos of their dogs and explain why their dog is the   M o r a l e s -­‐ N e u f e l d   Page  16    
  • 17.     best pet. Will be advertised and promoted in Telemundo morning show Levantate. § Microsite to include an interactive game, Disfrace tu Mascota where viewers can submit pictures of their mascotas and alter their image to make them look like their owners. Viewers must submit information so to obtain access to pictures. o Cause-related marketing: The brand will partner with the New York Humane Society to create a dog parade and promote pet adoption. The partnership will promote social responsibility and build a positive image for Healthy Fiesta. For every bag of dog food purchased, the company will donate $5 to the New York Humane Society. This will be backed by a large budget and marketing activities to promote event (Armstrong, Gary and Kotler Philip 87). o Outdoor advertising: Healthy Fiesta will hold presence in New York interstate highways in specific areas of New York including Bronx, Harlem, Queens, Staten Island, Long Island and Brooklyn. Posters in bodegas will also be included. o Product, pricing and place: Already at competitive price, Healthy Fiesta will be sold in bodegas and stores in urban areas where Hispanics are highly concentrated included but not limited to Wal-Mart, Target, and Price Rite, etc. Budget (See Gantt Chart in Appendix I.)   M o r a l e s -­‐ N e u f e l d   Page  17    
  • 18. Controls To evaluate the results of the marketing strategies, the Healthy Fiesta marketing team will implement marketing controls to measure the success of the brand in the test region (Armstrong, Gary and Kotler Philip 58). o Return on Investment (ROI) is the net return from a marketing investment divided by the costs of the marketing investment (Armstrong, Gary and Kotler, Philip 59). This control measures the profits generated by investments in marketing activities. o Marketing dashboards are meaningful sets of marketing performance measures that monitors strategic marketing performance (Armstrong, Gary and Kotler Philip 59). This customer-centered measure of marketing helps to view the impact such as customer acquisition, customer retention, customer lifetime value, and customer equity. o E-newsletters (retention of emails) o Google Analytics: to view number of viewers who visit the website and Microsite.   o Establish Rewards program to include Newsletters and coupons Conclusion In keeping with Nestlé Purina PetCare Company’s mission, Healthy Fiestas goal is to lead with fresh and innovative ideas to make the lives of dogs through exploring new trends that define the future of pet care and of Nestlé Purina. Healthy Fiesta provides balanced nutrition to help keep the consumers perrito happy and healthy. The 2012 Healthy Fiesta marketing plan will be implemented in the Tri-State region to test the success of the new marketing campaign.   M o r a l e s -­‐ N e u f e l d   Page  18    
  • 19.       i. FiscalYear Jan012 Begins: Marketing*Budget Nestle)Purina)Petcare)Company:)Beneful)Fiesta)Budget Monthly Jan012 Feb012 Mar012 Apr012 May012 Jun012 Jul012 Aug012 Sep012 Oct012 Nov012 Dec012 Average Total Overview Appendix   BudgetTotal 341,821 204,737 181,835 179,221 175,382 102,500 102,500 174,500 112,500 102,500 102,500 87,500 155,625 1,867,496 Personnel(5) Salaries,)wages 17,500 17,500 17,500 17,500 17,500 17,500 17,500 17,500 17,500 17,500 17,500 17,500 17,500 210,000 PersonnelTotal 17,500 17,500 17,500 17,500 17,500 17,500 17,500 17,500 17,500 17,500 17,500 17,500 17,500 210,000 MarketResearch Firm)Research)Fees 8,000 7,000 8,000 6,000 7,000 5,000 6,833 41,000 Web)Research 5,000 3,000 4,000 2,000 1,000 3,000 15,000 Independent) 3,500 4,000 2,000 2,500 1,000 2,600 13,000 Research MarketResearch 16,500 14,000 14,000 10,500 9,000 0 0 0 0 0 0 5,000 5,750 69,000 Total Communications Branding 50,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 22,500 270,000 Promotions 100,000 50,000 50,000 50,000 50,000 50,000 58,333 350,000 Television/)   Newsprint) 100,000 50,000 30,000 30,000 30,000 30,000 30,000 50,000 40,000 30,000 30,000 10,000 38,333 460,000 Advertising Web)Advertising 20,000 14,514 10,561 13,170 12,478 10,000 10,000 12,000 10,000 10,000 10,000 10,000 11,894 142,723 Direct)marketing 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 300,000 Communications 295,000 159,514 135,561 138,170 137,478 85,000 85,000 157,000 95,000 85,000 85,000 65,000 126,894 1,522,723 Total Hispanic communities in the test region and build on brand awareness. M o r a l e s -­‐ N e u f e l d     to ensure consumer loyalty, increasing POI and ROI in urban areas where products are to be sold. Through Healthy Fiestas promotional mix, the brands message will help to further reach Through consistent research, Healthy Fiesta will identify and speak to its target market, helping Page  19