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JIF

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This presentation was the culmination of a 3 month long team effort. It is the result of extensive research, discovery and creativity. It was presented in March of 2008, in Marketing Behaviors class.

This presentation was the culmination of a 3 month long team effort. It is the result of extensive research, discovery and creativity. It was presented in March of 2008, in Marketing Behaviors class.

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  • 1. Consumer Segmentation and Market Analysis
  • 2. I. Market Situation Analysis Christine Schneider
  • 3. History of Peanut Butter 1890 1903 1920 1923 1950 Anonymous St. Louis Doctor developed peanut “butter” for his patients Ambrose Straub patented a machine to make peanut butter Joesph Rosefield found the proper combination of stabilizers and sugar was discovered Rosefield prevented oil separation Food and Drug Administration put regulation on “Peanut Butter”
  • 4. History of Company 1955 1958 1960 1972 2002 P&G purchased the W.T. Young Company Jif was introduced by P&G P&G launched “Choosy Moms Chose Jif” Kids raised on Jif preferred a more sophisticated taste The J.M. Smucker Company acquired Jif
  • 5. Jif Peanut Butter Line Creamy To Go Simply Creamy Crunchy Honey Reduced Fat
  • 6. Direct Competitors Rosefield’s own brand of peanut butter Trademark for peanut butter Unilever Foods currently owns this brand Rosefield licensed his invention to the Pond Company The Pond Company created Peter Pan ConAgra Foods currently owns this brand The J.M. Smucker Company created organic to reach other target markets Offers an unprocessed peanut taste
  • 7. Indirect Competitors
  • 8. I. Industry Sales, Current Newsworthy Items, Industry Forecast Sean Fitzgerald
  • 9. Sweet Spreads
  • 10. Company Breakdown of Sweet Spread Industry
  • 11. Peanut Butter Industry
  • 12. Current Newsworthy Items <ul><li>“ Win $25,000 College Scholarship Fund in Jif Peanut Butter Sandwich Contest” </li></ul><ul><li>ConAgra Foods Inc. issues massive recall </li></ul><ul><ul><li>Maker of Peter Pan peanut butter </li></ul></ul>
  • 13. Current Newsworthy Items <ul><li>Smucker’s enjoys tremendous fourth quarter growth </li></ul><ul><ul><li>Attributed largely to Jif sales </li></ul></ul><ul><li>“ NC County to Eliminate Peanut Products from Schools” </li></ul><ul><ul><li>Peanut allergy concerns </li></ul></ul>
  • 14. Industry Forecast Sweet Spreads
  • 15. Peanut Butter Industry
  • 16. II. Consumer Market Segmentation Kevin Mosher
  • 17. Grade School Greta and Gary Jr.
  • 18. Grade School Greta and Gary Jr. <ul><li>Work: Chores around the house; paper route </li></ul><ul><li>Hobbies: Comic Books, pet turtle, video games, Boy/Girl Scouts </li></ul><ul><li>Club membership: Boy or girl Scouts </li></ul><ul><li>Media: Reads comic books and watches TV daily, mostly cartoons and sitcoms </li></ul><ul><li>Themselves: Just a kid that wants to have fun and hang out with friends </li></ul>
  • 19. Grade School Greta and Gary Jr. <ul><li>Age: 6-13 </li></ul><ul><li>Personal Income: Under $10,000 </li></ul><ul><li>Social Class: Lower-Middle; Middle-Middle; Upper-Middle </li></ul><ul><li>Shopper Type: Just wants the peanut butter that tastes best </li></ul><ul><li>Frequency of Use: Heavy </li></ul><ul><li>Benefits Sought: Wants great taste and variety. Wants it on their sandwich. </li></ul><ul><li>Involvement: Medium </li></ul>
  • 20. College Carl and Carol
  • 21. College Carl and Carol <ul><li>Themselves: Are pretty comfortable with themselves and know what brands they like and do not like </li></ul><ul><li>Media: Internet, TV, popular magazines, school newspaper </li></ul><ul><li>Work: Possible full-time job or part-time job in between classes, full-time student </li></ul><ul><li>Hobbies: Parties, hanging out with friends, music, intramural sports, collegiate sporting events, movies, concerts </li></ul><ul><li>Club membership: Fraternity/sorority, service groups, academic clubs </li></ul>
  • 22. College Carl and Carol <ul><li>Age: 18-26 </li></ul><ul><li>Sex: Male; Female </li></ul><ul><li>Frequency of Use: Heavy; Medium; Light </li></ul><ul><li>Benefits Sought: Taste, fulfillment, quality </li></ul><ul><li>Involvement: High </li></ul>
  • 23. Start Up Steve
  • 24. Start Up Steve <ul><li>Themselves: Does not want to be viewed as a failure in society </li></ul><ul><li>Products: Focuses on necessary items and specialty items for sport </li></ul><ul><li>Family: Single, may have a young child from previous relationship, enjoys extended family </li></ul><ul><li>Work: Works at the local factory </li></ul><ul><li>Hobbies: Camping, fishing, bingo, poker night, TV, Fraternal Order of the Elk </li></ul>
  • 25. Start Up Steve <ul><li>Age: 28-45 </li></ul><ul><li>Family Life Cycle: Single </li></ul><ul><li>Personal Income: $30,000-50,000 </li></ul><ul><li>Social Class: Upper-Lower; Lower-Middle; Middle-Middle </li></ul><ul><li>Frequency of Use: Medium </li></ul><ul><li>Brand Loyalty: Strong, Spurious </li></ul><ul><li>Benefits Sought: Wants something that tastes good and is easy to make for him and his son. </li></ul><ul><li>Involvement: Low </li></ul>
  • 26. Choosy Mom Chelsea
  • 27. Choosy Mom Chelsea <ul><li>Family: Very involved with her family, works hard to keep them happy </li></ul><ul><li>Work: Stay at home mom </li></ul><ul><li>Hobbies: Working out, cooking, reading, soccer practice, PTA meetings, Oprah, scout leader, book club, swimming, walking </li></ul><ul><li>Themselves: Trying to be the best mom possible, wants to be a role model for her kids </li></ul><ul><li>Products: Concerned mainly with food and cleaning supplies </li></ul>
  • 28. Choosy Mom Chelsea <ul><li>Age: 30-50 </li></ul><ul><li>Sex: Female </li></ul><ul><li>Family size: 3+ </li></ul><ul><li>Family Life Cycle: Full Nest I; Full Nest II </li></ul><ul><li>Personal Income: Under $10,000 </li></ul><ul><li>Social Class: Middle-Middle to Lower-Upper </li></ul><ul><li>Frequency of Use: Medium </li></ul><ul><li>Brand Loyalty: Strong, Genuine </li></ul><ul><li>Benefits Sought: Convenient for kids lunches, quality </li></ul><ul><li>Involvement: Low </li></ul>
  • 29. Retired Rick and Rita
  • 30. Retired Rick and Rita <ul><li>Work: Retired accountant and school teacher </li></ul><ul><li>Hobbies: Reading, Card playing, knitting, card clubs, country club, television (sports) </li></ul><ul><li>Family: Several grown children with grand-children </li></ul><ul><li>Home: Small condo or family house with spouse </li></ul><ul><li>Media: Newspaper, television and radio </li></ul><ul><li>Themselves: Somewhat self concerned, interested in family </li></ul><ul><li>Products: Stick with what they know </li></ul>
  • 31. Retired Rick and Rita <ul><li>Age: 65 and over </li></ul><ul><li>Family size: 1-2 </li></ul><ul><li>Family Life Cycle: Empty Nest III; the Retired Solitary Survivor </li></ul><ul><li>Personal Income: $20,000-$80,000 (typically fixed) </li></ul><ul><li>Social Class: Lower-Middle to Middle-Upper </li></ul><ul><li>Frequency of Use: Medium; Light </li></ul><ul><li>Brand Loyalty : Medium, Genuine </li></ul><ul><li>Benefits Sought: Health, familiarity, ease of consumption </li></ul><ul><li>Involvement: Low; Non-Involvement </li></ul>
  • 32. III. Psychographic Segmentation, Prizm Cluster Profiles &amp; Target Market Discovery Lindsey Noth
  • 33. Actualizers Self-Confident.Enjoy the “finer things.”Receptive to new products and technologies. Skeptical of advertising. Frequent readers of a wide variety of magazines. Fufilleds Value knowledge. Little interest in image or prestige. Like educational and public affairs programming. Read widely and often. Achievers Image-conscious. Relatively affluent. Attracted to premium products. Average TV watchers. Experiencers Action-oriented. Follow fashion and fads. Spend much of disposable income on socializing. Buy on impulse. Listen to rock music. Grade School Greta &amp; Gary Jr. College Carl &amp; Carol Start-Up Steve Choosy Mom Chelsea Retired Rick &amp; Rita High Resources Principle Oriented Status Oriented Action Oriented VALS 2™ NETWORK LIFE STYLE (PSYCHOGRAPHIC) SEGMENTATION
  • 34. Believers Traditional. Family Oriented. Buy American. Slow to change habits. Look for bargains. Watch TV more than average. Strivers Image-conscious. Limited discretionary incomes, but carry credit balances. Spend on clothing and personal-care products. Prefer TV to reading. Makers Self-sufficient, hands on. Shop for comfort, durability, value. Unimpressed by luxuries. Read auto, home mechanics, fishing magazines. Strugglers Restricted consumption. Concerned with security and safety. Brand loyal. Trust advertising. Watch TV often. Low Resources Grade School Greta &amp; Gary Jr. College Carl &amp; Carol Start-Up Steve Choosy Mom Chelsea Retired Rick &amp; Rita
  • 35. Prizm Cluster Profiles Quintile 1 Quintile 2 Quintile 3 Quintile 4 Quintile 5 Blue Blood Estates God&apos;s Country The Cosmopolitans Simple Pleasures Young &amp; Rustic Winners Circle Suburban Sprawl Middleburg Managers Domestic Duos Mobility Blues Urban Coast Mayberry-ville Traditional Times Close-in Couples Crossroads Villagers Country Squires Young Digerati Young Influentials Sunset City Blues Family thrifts Money &amp; Brains Bohemian Mix Greenbelt Sport Heartlanders Bedrock America Upper Crust Upward Bound Up-and-Comers Shotguns &amp; Pickups Big City Blues Big Fish, Small Pond Beltway Boomers Urban Achievers Suburban Pioneers Low-Rise Living Movers and Shakers Kids &amp; Cul-de-Sacs Boomtown Singles Multi-Culti Mosaic Golden Ponds Second City Elite Fast-Track Families New Homesteaders Old glories Old Milltowns Executive Suites American Dreams Big Sky Families American Classics Back Country Folks Brite Lites, Little City New Empty Nests White Picket Fences Red, White &amp; Blues Urban Elders Home Sweet City Pools &amp; Patios Blue-chip Blues New Beginnings Park Bench Seniors   Gray Power Kid Country USA Blue Highways City Roots City Startups Hometown Retired
  • 36. Blue-Chip Blues <ul><li>Mainstream Families </li></ul><ul><li>Middleburbs </li></ul><ul><li>Mid-Scale Younger Families </li></ul><ul><li>Suburban Homeowners </li></ul><ul><li>White collar, Blue collar, Services </li></ul><ul><li>High School </li></ul><ul><li>Visited a theme park, own a video game system, Ford Focus </li></ul>
  • 37. Young Influencials <ul><li>Young Achievers </li></ul><ul><li>Middleburbs </li></ul><ul><li>Midscale Younger Singles </li></ul><ul><li>Suburban Renters </li></ul><ul><li>&lt;35 </li></ul><ul><li>White Collar, Mix </li></ul><ul><li>High School/college </li></ul><ul><li>Buy high end computers, buy rap music, GQ Magazine, King of the Hill, Mazda 3 </li></ul>
  • 38. New Beginnings <ul><li>Striving Singles </li></ul><ul><li>Inner Suburbs </li></ul><ul><li>Lower/Mid younger Mix </li></ul><ul><li>Suburbs </li></ul><ul><li>&lt;35 </li></ul><ul><li>White Collar, Blue Collar, Service </li></ul><ul><li>High School </li></ul><ul><li>Play games on the internet, read Star Magazine, WWE, Jerry Springer TV, Kia Spectra </li></ul>
  • 39. Fast-Track Families <ul><li>Young Accumulators </li></ul><ul><li>Landed Gentry </li></ul><ul><li>Upper-Mid Middle Age Families </li></ul><ul><li>Town Homeowners </li></ul><ul><li>25-54 </li></ul><ul><li>Professional, White Collar </li></ul><ul><li>High School/College </li></ul><ul><li>Own a Power Boat, belong to book clubs, Country Living Magazine, Disney Channel, GMC Yukon </li></ul>
  • 40. Gray Power <ul><li>Conservative Classics </li></ul><ul><li>Middleburbs </li></ul><ul><li>Midscale Mature Singles/Couples </li></ul><ul><li>Suburban Homeowners </li></ul><ul><li>65+ </li></ul><ul><li>Professional, White Collar </li></ul><ul><li>High School/College </li></ul><ul><li>Go to museums, own a weekend home, watch Live with Regis and Kelly, Mercury Sable </li></ul>
  • 41. JIF Skippy Smucker’s Peter Pan Product Positioning Map Quality High Quality Low Variety Low Variety High
  • 42. Consumer Benefit Segmentation Popular Peanut Butter Spread Benefits Offered by Brand Brand Taste Quality Price Health Benefits Variety Jif 2 1 2 3 1 Skippy 1 2 3 2 2 Peter Pan 3 4 1 4 4 Smucker&apos;s 4 3 4 1 3
  • 43. Consumer Benefit Segmentation Popular Peanut Butter Spreads Benefits Sought by Market Segment Market Segment Taste Quality Price Health Benefits Variety Grade School Greta &amp; Gary Jr 1 3 5 4 2 College Carl &amp; Carol 2 3 1 4 5 Start Up Steve 2 3 1 5 4 Choosy Mom Chelsea 2 1 5 3 4 Retired Rick &amp; Rita 3 1 4 2 5
  • 44. Target Market Discovery Grid   Benefits Sought by Target Market Market Segment Taste Quality Price Health Benefits Variety Jif 2 1 2 3 1 Choosy Mom Chelsea 2 1 5 3 4
  • 45. IV. Market Benefits and Market Size and Sales Potential Benjamin Morgridge
  • 46. The Benefit Chain Popular Peanut Butter Spreads Choosy Mom Chelsea The Product Functional Benefit Practical Benefit Emotional Payoff A good tasting food that I buy for my family A high quality peanut butter I ate as a child; so I feel safe giving my children People will know I go all out for my family and provide them the best quality products Buying Jif will enhance my self esteem and confirm my belief that I am a good mother
  • 47. Market Segment Overlap Popular Peanut Butter Spreads College Carl and Carol Grade School Greta and Gary Jr. Choosy Mom Chelsea Start Up Steve Retired Rick and Rita
  • 48. Peanut Butter Benefit Segmentation Great Taste Expects a PB &amp; J Sandwich in their school lunch Active “ Life’s a garden, dig it.” Grade School Greta &amp; Gary Jr. Principle Benefit Sought Special Behavioral Characteristics Life’s Motto Life Style Characteristics
  • 49. Peanut Butter Benefit Segmentation Inexpensive Wants a quick snack when there is not much time to cook “ Work hard, play hard.” College Carl &amp; Carol Principle Benefit Sought Special Behavioral Characteristics Life’s Motto Personality Characteristics High Sociability
  • 50. Peanut Butter Benefit Segmentation Inexpensive “ When life gives you lemons, make lemonade.” Start Up Steve Principle Benefit Sought Special Behavioral Characteristics Life’s Motto Personality Characteristics Makes quick meals that the child will love High Autonomy
  • 51. Peanut Butter Benefit Segmentation Enjoys the traditional peanut butter they had growing up High Quality Content “ Live each day like it’s your last” Retired Rick &amp; Rita Principle Benefit Sought Special Behavioral Characteristics Life’s Motto Personality Characteristics
  • 52. Peanut Butter Benefit Segmentation Principle Benefit Sought Demographic Strengths Brands Disproportionately Favored Life Style Characteristics Quality Mothers, Families Medium User Jif, Skippy, Smucker’s Family Oriented Value-oriented “ Family first.” Choosy Mom Chelsea Special Behavioral Characteristics Personality Characteristics Life’s Motto
  • 53. Total Market (ages 18-80): 68,576,480 people Size of each market segment for peanut butter: Choosy Mom Chelsea 31% College Carl &amp; Carol 17% Start Up Steve 25% Retired Rick &amp; Rita 27% TOTAL 100% Market Size and Sales Potential
  • 54. Target Market : “ Choosy Mom Chelsea ” = 21,463,566 Brand : Jif Peanut Butter   Non-Users : 15% = 3,219,535 Non-users of peanut butter Heavy Users : 10% = 5,365,892 .30533 Jif Market Share (30.533%) x 1,663,426 Heavy User Total x 42 Ounces consumed per month x $.109 Price per ounce x 12 Months per year $91,381,970.74 Dollar sales per year   Market Size and Sales Potential
  • 55. Medium Users : 49% = 8,585,426 .30533 Jif Market Share (30.533%) x 2,661,482 Medium User Total x 24 Ounces consumed per month x $.109 Price per ounce x 12 Months per year $83,549,242.94 Dollar sales per year   Light Users : 29% = 4,292,713 .30533 Jif Market Share (30.533%) x 1,330,741 Light User Total x 10 Ounces consumed per month x $.109 Price per ounce x 12 Months per year $17,406,092.28 Dollar sales per year Market Size and Sales Potential
  • 56. Heavy Users: $ 91,381,970.74 Medium Users: 83,549,242.94 Light Users: 17,406,092.28 TOTAL $192,337,305.96 Sales Potential for Choosy Mom Chelsea
  • 57. V. Consumer Decision Process Model Dan Schaefer
  • 58. &nbsp;
  • 59. VI. Consumer Problems and Solutions Mike Rieker
  • 60. Problems <ul><li>Marketer Dominated Stimuli </li></ul><ul><li>Motivation and Involvement </li></ul><ul><li>Attention </li></ul>
  • 61. Motivation and Involvement <ul><li>Chelsea does not have any sense of excitement in buying Jif: </li></ul><ul><ul><li>Among list of many other things </li></ul></ul><ul><ul><li>Not independently sought out </li></ul></ul><ul><ul><li>Purchase is a chore </li></ul></ul>
  • 62. Marketer Dominated Stimuli <ul><li>Chelsea does not find any stimulus to buy Jif: </li></ul><ul><ul><li>Makes peanut butter a non-researched item </li></ul></ul><ul><ul><li>The same commercial style has run for years </li></ul></ul>
  • 63. Attention <ul><li>Chelsea knows “Choosy Moms Choose Jif” but she doesn’t know why </li></ul><ul><ul><li>Only recognizes need when she is out </li></ul></ul><ul><ul><li>Makes her decision at the store </li></ul></ul><ul><ul><li>Subject only to what is presented to her in the aisle </li></ul></ul>
  • 64. Solution?
  • 65. Marketer Dominated Stimuli <ul><li>Jif-mo-bile – Bring to schools </li></ul><ul><ul><li>Pros </li></ul></ul><ul><ul><ul><li>“ Taste-of-Mouth” promotion from kids </li></ul></ul></ul><ul><ul><li>Cons </li></ul></ul><ul><ul><ul><li>Costly, hard to implement, resistance from school </li></ul></ul></ul>
  • 66. Marketer Dominated Stimuli <ul><li>End Cap Displays- Pair Jif with a jelly and sliced bread on the end of store aisles. </li></ul><ul><ul><li>Pros </li></ul></ul><ul><ul><ul><li>Chelsea makes her decision before she gets a look at other options, additional display space </li></ul></ul></ul><ul><ul><li>Cons </li></ul></ul><ul><ul><ul><li>Slightly costly, promotion based on contracts with other companies. </li></ul></ul></ul>
  • 67. Marketer Dominated Stimuli <ul><li>Aggressive ad campaign-Show Chelsea something new </li></ul><ul><ul><li>Pros </li></ul></ul><ul><ul><ul><li>Never done before in peanut industry, tell the country of Jif’s success, and that Chelsea is buying the best. </li></ul></ul></ul><ul><ul><li>Cons </li></ul></ul><ul><ul><ul><li>Competitor of Jif is Smucker’s, large advertising cost </li></ul></ul></ul>
  • 68. <ul><li>Disney on the jar </li></ul><ul><ul><li>Pros </li></ul></ul><ul><ul><ul><li>Appeals to children, may be at the store </li></ul></ul></ul><ul><ul><li>Cons </li></ul></ul><ul><ul><ul><li>Not for all of Chelsea’s children, plus costly to pair with Disney </li></ul></ul></ul>Motivation and Involvement

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