2. 2
TABLE OF CONTENTS
EXECUTIVE SUMMARY……………………………………………...……..3
SITUATION ANALYSIS……………………………………………..….4-27
The Market……….……………………………...…...…...………...…….4-7
Competitive Position…………………………………………....………8-15
The Consumer………………………………...………………….……15-18
Dealers/Distributors/Brokers……….……..……………..……………19-20
Advertising History………………………….……………...……..……20-24
Sales Promotion…………………………...……………………..……24-25
Challenges and Opportunities……..…………………………………………26-27
RECOMMENDED TEST MARKET………………..……..…………28-29
CAMPAIGN OBJECTIVES……………………………………….....……30
TRADE DISTRIBUTION PLAN…………………………..………………30
SALES FORECAST………………………………………….……………31
TARGET MARKET RECOMMENDATION…………...……………32-37
MEDIA PLAN…………………………………………………...………38-43
CREATIVE………………………………………………………………44-54
SALES PROMOTION…………………………………………………55-59
BUDGET……………………………………………………………...…60-61
BIBLIOGRAPHY……………………………………………………..…62-63
3. 3
EXECUTIVE SUMMARY
The Spokane Designated Market Area is where we recommend launching a
test marketing campaign for Brightside Morning Snacks. Our recommended
target audience is females 21-39 with an income of $50,000 or more with a
college education. These females are family-oriented with a modern and
active lifestyle.
Consumers are snacking more than ever for a myriad of reason, which leads
to higher participation in the snack and cereal bar category. In this category of
cereal and snack bars, the top trends are health, product innovation,
packaging, and snack culture. The research from Mintel and Simmons shows
that the pricing of cereal bars and satisfying hunger are top reasons
consumers tend to buy bars. As people’s lives become busier and individuals
tend toward more chaotic lifestyles and schedules, they tend to buy more
snack bars as meal replacements or in-between meal sustenance.
Several store managers revealed that shelf-placement of cereal bars depends
on sales and/or brand participation with store marketing plans. Managers as
well as Mintel Research also revealed that bars tend to sell more when
schools are in session, especially the beginning and end months of the school
year. During these busy times, sales promotions are at their peak to capitalize
on this trend. While advertising we chose to use a flighting schedule, using ads
during August and then again in June, with other placements scattered
between.
The advertising goal is to reach 400 gross rating points in the first 90 days of
the campaign. Our creative campaign will consist of radio, TV and outdoor
advertisements.
Our creative statement is, “Be Bold. Be Brave. Be Bright.” Our advertisements
will feature families, children, and mothers since research shows that most of
our target are women with children.
4. 4
SITUATION ANALYSIS
The Market
Definition
The convenient packaging of bars is greatly valued in today’s on-the-go
society. Within the bar marketplace are cereal, snack, breakfast, and granola
bars. The following report details the market for Pepperidge Farm Brightside
Morning Snacks, offered in cranberry, cinnamon brown sugar and blueberry
flavors.
Relevant Market (SIC) Codes
The Standard Industrial Classification (SIC) code for Pepperidge Farm’s new
Brightside Morning Snacks bar is 2065. The first two numbers of the SIC code,
20, categorize breakfast bars as “food and kindred products”. The last two
numbers, 65, indicate that breakfast bars fall under the “candy and other
confectionary products” category. Brightside Morning Snacks’ NAICS code is
311340. Cereal bars similar to Brightside bars are classified as, “nonchocolate
confectionary manufacturing” products.
Market Size and Growth Trends
Growth within the bar market is slow, with sales decreasing slightly in the
breakfast, cereal, and snack bar category and increasing in the granola bar
category. According to Mintel research, cereal and snack bar sales saw a
general 7% increase of from 2007 to 2012, reaching $3.7 billion. However,
when adjusted for inflation, there was a 3% loss (Mintel, Cereal Bars and
Snack Bars. “Market Size and Forecast.” US, 2013).
Despite suffering sales, societal trends promise growth within the category.
The category’s overall convenience, health attributes, America’s growing snack
culture, and innovative packaging opportunities create an atmosphere ideal for
sales growth amongst products such as Brightside Morning Snacks.
5. 5
Market Forecast
At a 50% confidence interval, Mintel predicts that the cereal bars and snack
bars category will grow by 13% between 2012 and 2017. The best-case
scenario for this category falls within the 95% confidence interval, which
estimates a 25%
increase in sales to
$4.6 billion. This
category’s worst-case
scenario, also within
the 95% confidence
interval, predicts a
1.8% increase in
2017, bringing sales to
$3.8 billion (Mintel,
Cereal Bars and
Snack Bars.
“Executive Summary.”
US, 2013).
Market Make-Up
There is a large gap within the market between granola bar sales and cereal
bar sales. An increased market lead of granola bars over cereal bars between
2010-2012 led to granola bars having the greatest market share, making up
58.9% of the 2012 market (Mintel, Cereal Bars and Snack Bars. “Executive
Summary.” US, 2013).
Products within this category are sold in boxes containing individual packages.
Mintel research indicates that convenient and portable packaging is important
to 54% of respondents due to more frequent snacking and a wider variety of
snacking occasions and locations (Mintel, Food Packaging and Trends.
“Innovations and Innovators.” US, 2014).
6. 6
Distribution
Mintel detailed that 79% of the total US population consume cereal and snack
bars (Mintel, Cereal and Snack Bars. “Infographic Overview.” US, 2013).
Regional category distribution data, gathered from Simmons Market Research
Bureau (SMRB) software, indicates that the geographic region of primary
cereal bar consumption is the Midwest region with 19.7% of the region’s
population consuming cereal bars most often as a nutritional snack
(Index=117). Additional regions include South (15.9%), West (16.5%), and
Northeast (15.8%) (SMRB, 2009).
Significant Trends
Health
Weight has continued to be an issue throughout America. As people become
more health conscious in order to combat this problem, an interest in healthy
snacking has also increased. Mintel reported that, out of 1,995 respondents
age 18+, 65% of ‘very important’ and ‘somewhat important’ responses were
“healthy”. Health is even more relevant when it comes to meal replacement
snacks such as Brightside Morning Snacks. When consumers choose to
substitute a typical breakfast with a morning snack, they will more likely opt for
a healthy snack (Mintel, Healthy Snacking. “Executive Summary.” US, 2012).
Product Innovation
Product and brand differentiation within the market has begun to diminish as
the amount of similar products with parallel attributes increases (Mintel, Snack
and Nutrition Bars. “Issues and Insights.” US, 2014). Sales growth will occur as
a result of product innovation by focusing on promoting both fundamental and
applied benefits, ranging from “energizing” to “money-saving”. Promotional
goals should focus on boosting claims in order to divert consumer attention
“away from competing brands, private label offerings, and bar and snack
offerings in competing categories” (Mintel, Cereal Bars and Snack Bars.
“Executive Summary.” US, 2013). In doing so, the unclear line between market
segments will begin to redefine itself.
7. 7
Snack Culture
With 94% of adults snacking once per day and 50% snacking 2-3 times per
day, there is no doubt that snacking will continue to be an important activity for
food and drink companies to cater to. An indication of increased snacking
between 2014 and 2015 among millennials suggests that snack culture will not
only continue, but that it will grow, as well (Mintel, Snacking Motivations and
Attitudes. “Executive Summary.” US, 2015). The possibility of a decrease in
snacking would primarily come from an increased awareness of the weight-
related health issues in America. However, Mintel’s report on Experian
Simmons’ data observing American’s snacking behavior indicates that, despite
amplified media coverage about the country’s obesity problem, there was little
change in behavior between 2007-2011 (Mintel, Healthy Snacking. “Executive
Summary.” US, 2012).
Packaging
The A.D.D.-stricken, on-the-go society that is America today has a strong
impact on people’s eating habits. Whether or not a snack is packaged
conveniently greatly influences the sales success of that product. There is
room for growth with regard to this attribute as illustrated by the 33% of 1,888
respondents who indicated that there are not enough snacks offered in
convenient, individual, and re-sealable packaging. The functional snackers that
are millennials stresses the importance of convenience as maintaining focus
throughout the day is a top priority when it comes to choice of snack (Mintel,
Snacking Motivations and Attitudes. “Executive Summary.” US, 2015).
Further insight into snacking behavior indicates that a combined 49% of 1,979
respondents typically eat snacks either while driving or while on-the-go (Mintel,
Healthy Snacking. “Executive Summary.” US, 2012). Additionally, convenient
packaging saves consumers’ time, which 34% of 1,368 respondents indicated
as a reason for eating cereal and snack bars (Mintel, Cereal Bars and Snack
Bars. “Executive Summary.” US, 2013).
8. 8
Competitive Position
Product Quality
Mintel research shows that cereal/snack bars are perceived in a generally
positive light by consumers. In their research, Mintel surveyed 1,368 people
age 18 and above across many age ranges. In their research they found
multiple key findings for the current state of cereal/snack bars (Mintel, Cereal
Bars and Snack Bars. “Attitudes Toward Cereal/Snack Bars.” US, 2013).
One finding indicates that consumers like the taste of cereal/snack bars. This
was consistent amongst every demographic. Overall, 86% of those
participating in the survey agreed with the statement “I like the taste of
cereal/snack bars”. When looking at gender, percentage of those that like the
taste was nearly the same, with 87% of males and 86% of females liking the
taste. Again when examining the question based on different age groups the
results hold. At least 83% of each age range said they liked the taste. Adults
between the ages of 35 and 54 liked the taste the most (89% agreed with the
statement), while Senior Citizens (age 65 and older) liked the taste the least
(83% agreed with the statement (Mintel, Cereal Bars and Snack Bars.
“Attitudes Toward Cereal/Snack Bars.” US, 2013).
Another finding indicates that consumers generally consider cereal and snack
bars to be healthy. Based on all responses from participants of the survey,
74% agreed with the statement “Cereal and snack bars are a healthy snack”.
There wasn’t a difference of opinions between genders on the stance of
cereal/snack bars’ health status, as both at least 74% of both demographics
agreed with the statement. However, when looking at the participants’ thoughts
on cereal/snack bars’ health status across different age groups, some
discrepancy appears. All age groups below the age of 55 had higher
percentages of agreeing with the statement than the overall average of 74%.
Despite the younger age groups’ majority opinion that cereal/snack bars are
healthy, participants age 55 and older were in less agreement. Only 65% of
both the age groups of 55-64 and 65 and older agreed that the cereal/snack
bars are a healthy snack.
9. 9
Highlighting the health benefits of Brightside Mornings Snacks could help sales
with an older audience (Mintel, Cereal Bars and Snack Bars. “Attitudes Toward
Cereal/Snack Bars.” US, 2013).
A finding from the research that was less positive was cereal/snack bars
effect on hunger. One question in the survey asked the participants to agree or
disagree with the statement “When I eat them, I feel satisfied (full) for hours”
(them referencing the cereal/snack bars). The response showed the
participants were split on their agreement with the statement. 52% of the
participants agreed with the statement. Across most age groups, more
participants agreed with the statement than did not. However, the majority of
participants in the age groups of 18-24 and 65 and older disagreed with the
statement (Mintel, Cereal Bars and Snack Bars. “Attitudes Toward
Cereal/Snack Bars.” US, 2013).
Pricing, Sizes Available and Product Features
According to the research conducted by Mintel, consumers think that the
pricing for cereal/snack bars is fair. Mintel asked participants in their survey to
agree or disagree with the statement “Cereal and snack bars are an
inexpensive way to satisfy my hunger.” Overall, 69% of participants agreed
with the statement. Those between the ages of 18 to 24 agreed with the
statement at a much higher rate. 79% of participants in that age group agreed
with the statement. It is important to make note of this discrepancy and
emphasize that Brightside Morning Snacks are an inexpensive way to satisfy
hunger, especially towards the young adult audience (Mintel, Cereal Bars and
Snack Bars. “Attitudes Toward Cereal/SnackBars.” US, 2013).
10. 10
Nutritional Competitive Analysis
*Brightside has more calories and more fat than other bars listed.
*Of the bars compared, a single serving of Brightside is the largest at 45g.
*Brightside bars are on the high end of the sugar scale.
*Of the bars compared, Brightside has more protein per serving at 5g.
11. 11
Packaging Competitive Analysis
Product Bar Count
Package
Size
Retail
Price
Price Per
Ounce
Flavor
Varieties
Kellogg
Nutri-Grain Bars 8 10.4 oz $2.68 $0.26 7
Special K Chewy 6 5.28 oz $2.78 $0.53 4
Rice Krispies Treat 8 6.2 oz $2.00 $0.32 1
Special K Fruit Crisps
10 (2 per
pouch) 4.4 oz $2.78 $0.63 2
Special K Pastry Crisps
10 (2 per
pouch) 4.4 oz $2.78 $0.63 3
General Mills Inc.
Blueberry Muffin 5 8 oz $4.71 $0.59
Chocolate Chip Cookie
Dough 5 8 oz $5.28 $0.66
Apple Pie 5 8 oz $5.68 $0.71
Chocolate Chip Cherry
Torte 5 8 oz $4.58 $0.57
Lucky Charms Treats 6 5.1 oz $2.50 $0.49 1
Golden Graham Treats 6 6.36 oz $2.50 $0.39 1
PepsiCo Inc.
Quaker Oatmeal To Go 6 12.6 oz $2.73 $0.22 3
BRIGHTSIDE 5 8 oz $3.99 $0.50 3
12. 12
Shelf Placement
By comparing shelf placement among stores, it is easy to see who our major
competitors are and where they stand. We compared Pullman Dissmore’s IGA
to Pullman Walmart.
Key players by space allotment in both stores:
1. Nature Valley
2. Fiber One
3. Quaker
4. Nutri-Grain
5. Special K
6. Kashi
7. Store Brands
Other brands mixed in the shelf space at Walmart included Kind, Life Choice,
Larabars, and Nature’s Bakery fig bars; Dissmore’s included Jif, Annie’s and
Bakery on Main.
14. 14
Market Share
In the cereal/snack bar industry, Kellogg’s is the clear leader in terms of sales.
Of the over $1.1-billion industry, Kellogg’s makes up 61% of the market share
with sales of $733,100,000.00. These sales are made up of many different
products such as Nutri-Grain Bars, Special K Bars, Rice Krispy Treats, and
more. The three listed are the leading products from Kellogg’s, together
making up 77% of Kellogg’s cereal/snack bar sales (Mintel, Cereal Bars and
Snack Bars. “Brand Share—Breakfast/Cereal/Snack Bars.” US, 2013).
Kellogg
61%
General
Mills
Inc.
10%
Kra5
Foods
Inc.
3%
PepsiCo
Inc.
3%
Other
15%
Private
Label
8%
CEREAL/SNACK
BAR
MARKET
SHARE
Nutri
Grain
Bars
29%
Special
K
Bar
24%
Rice
Krispies
Treats
24%
Special
K
Fruit
Crisps
12%
Special
K
Pastry
Crisps
5%
Other
6%
KELLOGG
MARKET
SHARE
15. 15
Trends
A growing trend in the United States is that of snacking. People are constantly
on the move, which often gets in the way with eating. According to Mintel’s
research on the Reasons for Eating Cereal/Snack Bars, 75% of those that eat
cereal/snack bars eat them as a snack in between meals (Mintel, Cereal Bars
and Snack Bars. “Reasons for Eating Cereal/Snack Bars.” US, 2013).
Awareness of this growing trend is important when positioning the product.
Additionally, according to Innova Market Insights, a top food and beverage
trend of 2015 is the decline of formal mealtimes (Boothroyd, “Top ten food
trends for 2015, Innova Market Insights”). This is another indicator that
cereal/snack bars will see an increase in sales. Prepared Foods, a trade
magazine devoted to processed and packaged foods and beverages predicts
that the market for snack bars will move close to $8-billion by 2019 (“U.S.
Nutritional and Cereal Bar Trends”).
The Consumer
U.S. Consumers
The U.S. as a whole has over 115.2 million households with 79% of them
consuming cereal bars or snack bars (Mintel, Cereal Bars and Snack Bars,
2013). That means about 91,008,000 individual households in the U.S. are
consumers of the category.
Households
Around 66% of U.S. households are family households and 34% are nonfamily
households. The average household size is 2.6 people and 33% of households
have one or more people under 18 years old (Census.gov).
Between 2004 and 2014, the number of households using cereal bars
increased 50% and the number consuming specifically chewy granola
increased 33%. Altogether, around 44% of adults used cereal or granola bars
in 2014. So, using U.S. population estimates, there were approximately
108.028,770 individual adult consumers of the category that year. Those most
likely to be consumers in the category are women, young consumers,
16. 16
consumers from larger households, and households with children (Mintel,
Cereal Bars and Snack Bars US, 2013).
Consumption and age
Personal consumption correlates to age with younger individuals (18-24) being
more likely to eat cereal/snack bars. As age goes up, consumption goes down
for this category.
Young Consumers
An important group is those even younger than 18, with some 93% of parents
with children 12-17 indicating that someone in their household consumes in the
category.
Consumer Income
Households with higher incomes are more likely to buy snack and nutrition
bars. A 2014 Mintel report shows that households earning $100,000 to
$149,900 consume the most bars. However, the tie between consumption of
17. 17
cereal and snack bars and income is not very strong. Even in challenging
financial times, consumers still see the category as affordable.
Households with Children
Households with children are more likely to consume in the category as
parents bring snacks into the home that aid in active lifestyles. In a Mintel
study, 89% of respondents with children in the house said someone in the
home consumes some type of bar while a lesser 72% of households without
kids say the same. The presence of children drives consumption in the
category, as well as attitudes about the products (Mintel, Cereal Bars and
Snack Bars US, March 2013). Respondents with children in the Mintel study
were more likely to be interested in variety of flavor and added health benefits
to suit their own needs as well as their children’s.
Non-Consumer Attitudes
A Mintel study showed that only 27% of people who do not eat cereal or snack
bars said there was any concrete reason they don’t participate in the category
(Mintel, Cereal Bars and Snack Bars US, 2013). Therefore, this may indicate
that most who don’t eat from the category just don’t really think about it and
could therefore be swayed to become users through stronger promotion and
advertising of the products.
Those who did indicate a specific reason for nonparticipation showed trends
within gender groups. Men are more likely to say that price is a reason for not
consuming bars, while women say health concerns lead them to the same
conclusion.
Snacking Consumers
Consumers are snacking more than ever and are looking for products to
satisfy during the in-between meal times (Mintel, Cereal Bars and Snack Bars
US, 2013). An interview that our agency conducted with a 28-year-old mother
of three, said she buys bars to give her children in the car so that she does not
have to spend money on fast food while out and about in-between meals she
makes at home.
18. 18
Minority Consumers
Hispanics are more likely to consume products in the category than non-
Hispanics. Simmons data shows that respondents of Hispanic/Latino origin
index at 142 for eating granola most often as a snack and 126 for cereal
bars.
Asians are more likely to consume the category as a meal replacement than
as a snack. They are interested in the category’s role as a time and money
saver and energy booster.
Black consumers are significantly more likely than average to be interested in
nutritional benefits of snack and cereal bars. These consumers look for bars
with fiber, protein, vitamins, and nutrients (Mintel, Cereal and Snack Bars US,
March 2013).
19. 19
Dealers/Distributors/Brokers
Top Sellers
Upon conducting interviews with store managers, we discovered the top three
selling bars are Quaker Chewy, Fiber One, and Nature Valley. According to a
Dissmore’s manager, Fiber One bars sell between 15-18 cases a week and
Nature Valley sells 8-10 cases a week.
Back to School Sales
As we continued to interview the managers, each of them said the most sales
they have in the category are at the beginning of school years and at the end
of school year, especially in Pullman. Dissmore’s manager did state they tend
to do more promotions at the beginning of the school year when students
come back to school; the Spokane markets agreed.
Product Positioning on the Shelf by Store
We discovered from the Rosauers manager that if national brands comply with
the Rosauers marketing plan, they will receive better shelf placement.
Dissmore’s, however, shelves in correlation to product sales. Safeway and
Wal-Mart stores are corporately controlled so that every store has the same
shelf-positioning and promotions at all times.
Promotional Practices
The stores we contacted said they utilize coupons most frequently. For
example, Fiber One is the main driver for sorority moms because they receive
10% off coupons. Dissmore’s makes coupons available in-store for their
customers. Other coupons go out to the community on a weekly basis. Nature
Valley, specifically, sends coupons out every third week to locals.
Promotional practices are very effective, according to the store manager at
Wal-Mart. Some of the main promotions he noted that are currently going on
are:
• Nature Valley for $3.42 (a savings of $0.36)
• Fiber One for $3.59 (a savings of $0.40)
20. 20
• Other notable brands like Special K and Nutri-Grain were not running any
promotions at the time of this report.
Safeway has promotional activities that vary week-to-week. The store also
has their club card program, “Just for U”, where consumers can go online and
load coupons for promotional goods.
The main trend that appears most prominent overall for the product category,
is the school year and timed promotions. Students or parents of students will
be more likely to purchase before and during the school year. Another trend
that is used is coupons or deal variations. Some stores will change their
promotional practices on a week-to-week basis or send out coupons on
scheduled plans, as well as brands. Most will use DSD (direct store delivery) for
their products. Stores with club cards, like Safeway’s “Just for U” program,
engage with consumers online to download coupons for more in-store savings.
Placement of brands and goods on shelves for smaller stores, like Dissmores,
is determined by price whereas other larger stores, like Wal-Mart and Safeway,
will only put products where corporate instructs to place them.
Advertising History
Advertising Expenditures
The majority of the advertisements are being placed in magazines, network
television, spot television, syndicated television, and cable television. Most
goes into Cable Television, with a total of over $22 million spent in 2013. This
tells us that, with a smaller advertising budget like we have, it may not be
entirely feasible to advertise in Cable Television. Looking at other mediums to
advertise in, the least used here is the category of Spot Television. This may
be a good opportunity if we want to advertise directly to those in the Spokane
DMA.
When looking at the examples of competitor advertisements, print advertising
seems to be a popular choice. This may be because, with print
21. 21
advertisements, the public has the opportunity to see the message more than
one time.
*Numbers in thousands [000] of dollars
Advertising Copy Analysis
Kellogg’s Nutri-Grain Bars
Medium Magazine
Network
TV Spot
TV Syndication Cable
TV
Total
Kelloggs
Nutri-‐
grain
Bar $2,100.6
$0.0
$0.0
$0.0
$0.0
$2,100.6
Nature
Valley
Granola
Bar $0.0
$1,518.5
$9,010.3
$1,566.4
$10,851.5
$22,946.8
Quaker
Oats
Granola
Bar $50.1
$1,800.7
$262.2
$2,664.6
$3,643.9
$8,421.5
Kelloggs
Special
K
Bar $0.0
$1,210.5
$28.1
$1,044.0
$1,857.3
$4,139.8
Kelloggs
Nutri-‐
grain
Fruit
Crunch
Bar $4,861.6
$5,009.8
$57.2
$3,051.2
$5,916.6
$18,896.4
22. 22
This box of Nutri-Grain bars details the healthy benefits that consumers gain
from the purchase and consumption of the product. The focus on the box,
“Now! MORE of the WHOLE GRAINS Your Body Needs,” tells consumers that
Kellogg’s introduced a new feature to the bar that is a necessity for living a
healthy life. Additionally, the box says “MADE WITH REAL FRUIT.” This infers
that consumers of the product are interested in eating a cereal bar that
contains natural ingredients.
From this print advertisement, Kellogg’s is showing that the typical breakfast
food goes straight to your hips and rear. The woman herself is not overweight,
but, after eating two cinnamon rolls, she can be seen as having a large behind.
The woman that ate the two breakfast croissants appears to have love
handles. This message attempted to show that choosing an unhealthy
breakfast option will lead to adverse effects on the body.
23. 23
The copy in these advertisements reads, “Respect yourself in the morning”.
This leads consumers to believe that they are doing themselves an injustice by
eating these high-fat, high-calorie breakfast options. It infers that by eating a
Kellogg’s Nutri-Grain bar, consumers are more likely to have higher self-
respect and feel better about themselves by avoiding unhealthy breakfast
cereal bars.
One other thing to note about these two advertisements is that, since the
model appears to be 20 to 30 years old, Kellogg’s is likely targeting females in
the same age-range.
General Mills
TV advertisement – 2002 Honey Nut Cheerios Milk n' Cereal B
The main focus of this General Mills Milk and Cereal Bar television
advertisement is on how readily available and convenient it is to consume their
product. While a younger brother has time to sit down and enjoy the same
general mills cereal in bowl form, the older brother is on-the-run and is unable
to sit down for breakfast. He stresses the convenience that he has for
consuming his cereal in bar form. The voice-over tells about how the bar is
convenient as well, and that it has all of the same nutritional value as a bowl
of cereal.
24. 24
From this commercial, I can tell that they are advertising to youth, children
under the age of 18. They are focusing on kids that are busy, but still want to
enjoy the taste of cereal. The advertisement states that the bars have similar
nutritional value to a regular bowl of cereal, which I see as a statement to the
kids’ parents, as they will likely be the ones to purchase the product.
Sales Promotion
Sales promotions allow products to be cheaper and more appealing to
customers. There are in store promotions as well as promotions online. After
talking to managers at three major grocery stores we quickly understood just
how important promotions are. Every manager agreed promotions seem to be
most effective in the fall. We also noticed how much control corporate offices
have over stores like Wal-Mart and Safeway when it comes to offering
promotions and discount prices. After looking at the promotions going on for
breakfast bars and breakfast snacks it is apparent the promotions as well as
the benefits are strikingly similar. It is strongly encouraged that Pepperidge
Farms have promotions that not only stand out and catch the attention of the
consumer but also change the consumer’s buying habits.
Fiber One Bars
Fiber One has a promotion on their website called the Fiber One Challenge.
This promotion challenges their existing consumers as well as new consumers
to try Fiber One Cereal for a week and see if you personally feel better when
the week is over. This challenge allows Fiber One to share with their website
visitors why they will feel better by eating their product and attempt to help
people stay on track with their healthy diets. Fiber One then allows you to tell
your story and how Fiber One products have impacted your life. Social media is
also used in Fiber One’s promotion plan. Facebook, Twitter, Pinterest, and
Instagram are all used to communicate promotions to their audience. Fiber
One bars were on sale for $2.48 with a Safeway Club Card and $3.59 at
Dissmores, allowing the consumer to save 40 cents.
25. 25
Special K Bars
Promotions for Special K are communicated through their own social media
accounts such as Facebook and Twitter. Special K currently has a competition
on their website where specially marked boxes of Special K bars have a
coupon for a free 60-day personalized fitness program with Daily Burn. If won,
the consumer gets to have their own personal coach and gets to choose the
work out that best fits their needs. This promotion ends on 09/30/16. Another
promotion they have online is to be able to win up to $100 by receiving a
game piece in specially marked packages of Kellogg’s cereal, including
Special K. In store promotions include Special K Bars being sold for 2 for $6
with a Safeway Club Card.
Nature Valley Bars
Nature Valley bar coupons go out every 3rd
week distributed by Dissmores.
Promotions in store included discounts such as Nature valley on sale for $3.42
saving you 36 cents. This promotional discount expires on October 2nd
.
Website promotions for Nature Valley included printable coupons to save 50
cents. They also encouraged visitors to follow Nature Valley on Twitter and
Facebook for regular updates on coupons. Nature Valley’s club price was
$2.48 instead of the original price of $3.49. At Dissmore’s the Nature Valley
promotion allowed consumers to save 36 cents.
26. 26
Challenges and Opportunities
A possible challenge that we may face when advertising is the possibility of
being overshadowed by competition. Many other companies have significant
advertising budgets and have the ability to purchase many advertising spots in
multiple forms of media. With our smaller advertising budget, we may struggle
to find footing in a medium that is consumed by our target audience and is not
cluttered with competition.
Additionally, there are many other competitors in the same market that we are
entering. This may prove to be a challenge when we are trying to find footing
with unique advertisements, as differentiation between products may not be
easily noticed by the target audience. When thinking of the creative copy, it
will be important to stress or emphasize the unique characteristics of our
product in order to better facilitate the recognition of why Brightside breakfast
bars are the best option for the target audience to choose.
An opportunity that we have with the Brightside breakfast bars is that there are
some mediums that are not utilized at all by competition. This means that we
have the chance to capitalize on these less-used mediums to reach our target
audience in less cluttered place. Being able to be the only breakfast bar
advertisement in newspapers and radio could be something to take note of.
This is, however, reliant on the percentage of those in the target audience that
consume this form of media. It would not be efficient of us to advertise in
newspapers and radio if the target audience doesn’t tune-in to these mediums
frequently.
Further Challenges and Opportunities to note:
1. PROBLEM: In a Mintel report from 2013, 32% of people say they do not
consumer snack or cereal bars.
OPPORTUNITY: Most who do not participate in the category indicate no
real deterrent (Only 27% of nonparticipants indicated a specific reason
for not using) and therefore there is opportunity to grow an even larger
customer base.
27. 27
2. OPPORTUNITY: Consumers are snacking more than ever.
CONCLUSION: nurture this trend—promote product as a snack option for
the hungry consumer.
3. PROBLEM: Mintel reports that people may be challenged to find uses for
the cereal/snack bar category
CONCLUSION: Show consumers in our advertisements specific uses for
the “in-between times.”
4. OPPORTUNITY: 86% of consumers of the category like the taste of the
products and three quarters consider them a healthy snack (MINTEL).
CONCLUSION: Marketing messages should prioritize discussion of taste
and product positioning should prioritize health factor.
5. OPPORTUNITY: A strength in the category is that only a third of
consumers view products as being too processed (MINTEL).
CONCLUSION: We may increase consumption among this group through
promoting wholeness and health.
6. PROBLEM: More than half of consumers think that store brands are just
as good as name brands
CONCLUSION: Fill consumers with confidence that they don’t need to
trade down to store brands to save money; promote brand as affordable.
7. OPPORTUNITY: Hispanics are more likely than non-Hispanics to
consume products in the category. The Hispanic population is rapidly
expanding in the U.S. They are more likely to consume granola bars
especially (MINTEL) (U.S. Census Bureau).
CONCLUSION: Make Hispanics a niche target since there are signs for
potential future growth. When advertising to these consumers, focus on
health of the product. Hispanics are significantly more likely to eat these
products for weight loss, weight maintenance, metabolism, and blood
sugar (MINTEL).
28. 28
RECOMMENDED TEST MARKET
Spokane, WA
We
recommend
the
Spokane
Designated
Market
Area
(DMA)
for
the
Brightside
test
market
campaign.
This
DMA
is
among
the
top
25
of
“America’s
Best
Test
Markets,”
according
to
top
research
firms.
For
our
campaign,
it
is
important
that
we
have
a
test
market
that
reflects
the
nation
in
age
levels,
income,
and
retail
sales
buying
habits.
Spokane
DMA
meets
all
three
criteria:
ü Spokane
age
groups
in
our
target
recommendation
(21-‐39)
are
close
to
the
national
Index:
Age
Count
%
Comp
Index
Age
21
&
Over
824,445
72.32
100
Age
21-‐24
71,489
6.27
112
Age
24-‐34
140,940
12.36
94
Age
35-‐44
127,833
11.21
88
(SRDS
–
“Market
Profiles:
Demographic
Overview”)
ü Average
Spokane
Household
income
is
similar
to
U.S.
income:
Spokane
DMA
Est.
Avg.
Household
Income
National
Avg.
Household
Income
$58,914
$51,939
(SRDS)(U.S.
Census
Bureau)
ü Spokane
is
on
the
Top
100
list
for
total
U.S.
Retail
Sales:
Area
($000)
Rank
Spokane,
WA
$6,837,372
98
(Survey
of
Buying
Power
and
Media
Markets)
Size and Attributes of the Spokane DMA
29. 29
Spokane DMA Characteristics
The 2014 estimate for the Spokane Designated Market Area is 1,139,926
(SRDS). The population in this market has been trending upwards since at
least 2000 and is projected to reach 1,181,283 by 2019.
There are approximately 452,933 households in this DMA. Most of them
(293,075) are family households. Almost 50% of households are married-
couples with no children. The second largest group are married couples with
their own kids (almost 30%). Nearly 10% have a female householder with
children (SRDS).
Most households have 2 people in this area with 36.44% falling into the
category. This market is 12% more likely than the national average to have 2
people in a household at an index of 112. Next up is 1-person households with
28.05% of this area having just 1 person in the residence. The third most
prominent are 3-person households, which comprise about 14.61% of all
households in the DMA. The percentages go down from here as household
size increases (SRDS).
Almost 90% of residents are white, but the area also has a very high index
(234) of American Indian and Alaska Natives. This group only makes up about
2.3% of the area, but it is 134% above the nationwide average. The DMA is
below nationwide average on the number of black or African Americans,
Asians, Hispanic and Latinos, Puerto Ricans, and Cubans.
The majority of people 16-years-old and above are White Collar workers in this
area, almost 60% of them in fact. About half of the remaining 40% are Blue
Collar workers and the other half are Service and Farm workers.
Most workers (185,208) in this DMA travel less than 15 minutes to work and
170,735 travel no more than 29 minutes. The 2014 estimated average travel
time to work here is 22.41 minutes.
30. 30
CAMPAIGN OBJECTIVES
o Introduce a new product into the product category in the form of
Pepperidge Farms Brightside Morning Snack bars on August 1, 2016.
o Target women, 21-39 years old in the Spokane DMA.
o Achieve 400 gross rating points (GRPs) in the first 13 weeks
o Maintain 31 gross rating points (GRPs) per week
o Achieve at least a 50% All Commodity Value (ACV) across chains and
independents
o Do not exceed budget of $91,221.94.
o Present Brightside Morning Snacks as a seamless addition or
replacement within target’s diet.
o Purchases encourages by couponing, sampling and spots placed across
TV, radio, and other outdoor or social media.
TRADE DISTRIBUTION PLAN
Within the Spokane DMA we plan to distribute to Albertsons, Safeway,
Rosauers, Wal-Mart, Fred Meyer, Yokes and Winco, making up 54% ACV for
chains and 45.8% ACV for independents.
31. 31
SALES FORECAST
We
determined
the
projected
sales
for
the
test
market
by
factoring
in
the
total
number
of
stores
involved
in
the
test
market,
the
wholesale
cost
per
case
to
the
retailers,
the
average
weekly
case
movement
among
all
the
stores,
and
the
length
of
the
test
market
campaign.
(71
stores)
x
($20.59)
x
(2)
x
(52
weeks)
=
$152,036.56
projected
sales
forecast
From
this
number
we
calculate
the
projected
wholesale
sales
by
multiplying
our
projected
sales
by
.542
for
our
54.3%
ACV
in
chain
stores
and
by
.458
for
our
45.8%
ACV
in
independent
stores.
$152,036.56
x
.542
=
$82,403.81
Projected
Whole
Sales
in
chain
stores
$152,036.56
x
.458
=
$69,632.74
Projected
Whole
Sales
in
independent
stores
We
then
calculate
the
cost
of
placing
the
product
in
all
71
stores
across
the
DMA.
Since
we
are
launching
a
new
product
with
3
flavors,
each
product
will
cost
$170
to
place
for
13
weeks.
71
stores
x
$170
slotting
fees
x
3
flavors
=
$36,210
Slotting
Fees
We
allocated
roughly
90%
of
our
remaining
total
budget
to
our
media
costs
on
radio,
television
and
outdoor
advertising.
$55,011.44
x
.9
(90%)
=
$49,750.00
for
media
costs
We
left
ourselves
a
sizable
amount
in
order
to
advertise
our
product
using
radio,
TV
and
outdoor
mediums
that
are
appropriate
for
our
target.
The
remaining
budget
was
used
for
an
in-‐
store
sampling
session
in
26
stores
on
the
same
day.
This
will
cost
an
estimated
$4,838.22.
Remaining
Budget
32. 32
TARGET MARKET RECOMMENDATION
Target audience was identified based on extensive consumer and market
research utilizing secondary research. Data collected from the situational
analysis, Mintel, Simmons and Lifestyle Analyst was used to select the target
audience. Consumer behavior related o the product category is cross-
referenced with the following demographics: gender, age, race, marital status,
family size, income and education level. The following consumer behaviors
such as consumption of cereal bars, frequency of consumption with regards to
brand and psychographics were evaluated.
Primary Target Audience
Age 21-39
Gender Female
Income 50,000+
Education
Level
College+
Other Family oriented; Active/Semi-Active Lifestyle; “Modern” Moms;
Educated; Open to New Thing in Diet & Life; “Snackers”
The first series of tables (cereal consumption with simple demographic
information) supports the idea of the recommended target audience, who
consume cereal bars the most. The primary target group consists of females,
21-39, with a college education. They are family oriented, health conscience
and live active-semi active lifestyles. These women are in careers that earn
them an average income of $50,000 to $99,999.
Although we have one primary target market, we also identified married or
never married women with children as a main focus for the product. When
observing the data collected, it is observed that both married women and head
of the household women both have high vertical percentages and indexes for
consumption behavior for the cereal bar product.
33. 33
Gender Total (000) Horizontal % Vertical % Index
Male 6,563 13.8% 34.0% 82
Female 12,754 19.1% 66.0% 113
Figure 1: Shows that females are higher consumers of cereal bars most often
as they are over indexing by 13%, in comparison to males, under indexing by
12%.
Females
Aged
Total (000) Horizontal % Vertical % Index
18 118 16.5 .61 97
19 82 24 .42 142
20 103 24.6 .53 145
21 77 13.9 .40 83
22-24 350 19.9 1.81 118
25-29 1,656 29.9 8.57 177
30-34 1,837 23.9 9.51 141
35-39 985 18.1 5.10 107
40-44 1,250 21.6 6.47 128
45-49 1,408 25.8 7.29 153
21-39 4,906 18.4% 100% 138
Figure 2: Shows that the ages 25-34 within our target are those that are most
likely to consume cereal bars most often. Overall, our 21-39 target are over
indexing by 38%.
Highest Education: Females Aged 21-39
Education Total (000) Horizontal % Vertical % Index
High School with
Degree
4,957 29.1% 23.6% 158
Graduate School
with Degree
2,442 21.2% 11.6% 116
Graduated
College or more
8,216 25.7% 39.1% 140
Figure 3: Indicates that our target is educated at a high level. Will have their
high school diploma going on to college and more and even some with
graduate school degrees.
34. 34
Race: Nutritional Snack Granola, Fruit, etc.: Nutritional Snack Types Most
Often: Cereal Bars
Race Total (000) Horizontal % Vertical % Index
White 14,809 16.5% 76.7% 98
Black/African
American
2,265 16.7% 11.7% 99
Asian or Pacific
Islander
763 19.1% 3.95% 113
Some Other Race 1,480 20.5% 7.66% 121
Not White or
Black
2,243 20.0% 11.6% 118
Figure 4: Shows that overall, whites and black/African Americans are slightly
under indexing and other racial groups registering above index.
Marital Status: Nutritional Snack Granola, Fruit, etc.: Nutritional Snack Types
Most Often: Cereal Bars
Marital Status Total (000) Horizontal % Vertical % Index
Married 10,426 18.8% 50.7% 105
Widowed 1,215 10.4% 5.91% 58
Divorced 2,871 16.6% 14.0% 92
Separated 557 16.4% 2.71% 91
Never Married 5,497 20.6% 26.0% 115
Figure 5: Indicates that those who consumer cereal bars most often are likely
to be either married (index: 105) or never married (index: 115)
Family Size: Nutritional Snack Granola, Fruit, etc.: Nutritional Snack Types Most
Often: Cereal Bars
Family Size Total (000) Horizontal % Vertical % Index
Any Kids 12,280 20.3% 59.7% 113
No Kids 7,885 15.7% 38.3% 87
Figure 6: Indicated that families with children consume cereal bars most often
with a vertical percentage of 59.7% and index of 113.
Female headed house: Nutritional Snack Granola, Fruit, etc.: Nutritional Snack
Types Most Often: Cereal Bars
35. 35
Parent Total (000) Horizontal % Vertical % Index
Any Kids 6,294 20.8% 32.6% 123
No Kids 3,531 14.4% 18.3% 86
Figure 7: Shows that households headed by females with children are more
likely to consume cereal bars most often. Relates back to figure 5 seeing that
never married people registered an index of 115
Income: Nutritional Snack Granola, Fruit, etc.: Nutritional Snack Types Most
Often: Cereal Bars
Income Total (000) Horizontal % Vertical % Index
$35,000-49,999 1,927 11.9% 9.97% 71
$50,000-
$74,999
3,644 17.9% 18.9% 106
$75,000-
$99,999
3,568 25.8% 18.5% 153
$100,000-
$149,000
2,358 17.4% 12.2% 103
Figure 8: Shows that overall, the consumers of cereal bars most often are
earning between $50,000 to $99,999.
Female 21-39 Income: Nutritional Snack Granola, Fruit, etc.: Nutritional Snack
Types Most Often: Cereal Bars
Income Total (000) Horizontal % Vertical % Index
$35,000-49,999 88 2.30% 7.59% 54
$50,000-
$74,999
981 4.81% 20.0% 112
$75,000-
$99,999
1,077 7.78% 21.9% 182
$100,000-
$149,000
660 4.86% 13.4% 113
Figure 9: Shows that looking deeper, that females aged 21 to 39 who eat
nutritional snack bars, cereal bars, most often are earning over $50,000, with
the main consumers falling between $50,000 and $99,999. Which is reflected
in the overall population.
36. 36
Attitudes/Opinions on Diet & Health: Female aged 21-39
Statement Total (000) Horizontal % Vertical % Index
I will pay anything
when it comes to
my health
1,288 17.3% 33.8% 94
I consider my diet
to be very healthy
1,290 15.2% 33.4% 83
I think of the
calories in what I
eat
7,283 20.2% 34.6% 110
I make sure I
exercise regularly
1,293 17.3% 34.7% 94
I don’t have time
to prepare/eat
healthy meals
1,191 18.7% 37.8% 102
I like to know
about ingredients
before I buy food
1,515 16.9% 41.5% 92
I’ll try any new diet 2,631 21.0% 12.5% 114
I work at eating a
well balanced diet
1,953 18.7% 59.0% 102
I try to eat
healthier food
these days
13,614 18.2% 64.8% 99
I’m usually the
first to try a new
health food
4,142 23.9% 19.7% 130
Figure 10: Indicates females 21-39 like to try any new diet and will usually be
the first to try new healthy foods.
Attitudes/Opinions on Food: Female aged 21-39
Statement Total (000) Horizontal % Vertical % Index
I try to include
fiber in my diet
13,365 17.4% 63.6% 95
I often snack
between
between meals
15,443 21.1% 73.5% 115
37. 37
I normally count
calories in the
foods I eat
5,792 23.3% 27.6% 127
Natural value is
most important
in the foods I
eat
9,244 17.3% 44.0% 94
I like to try out
new food
products
11,986 20.5% 57.0% 112
I eat several
small meals
during the day
9,158 21.1% 43.6% 115
Figure 11: Shows that females 21-39 are snacking between meals and will try
new products (index: 112) while eating several small meals during the day
(index: 115)
Female 21-39 Nutritional Snack Granola, Fruit, etc.: Nutritional Snack Types
Most Often
Type Total (000) Horizontal % Vertical % Index
Cereal Bars 4,906 25.4% 23.3% 138
Chewy
Granola
5,864 28.5% 27.9% 155
Fruit 4,345 25.2% 20.7% 137
Granola 4,180 24.9% 19.9% 136
Other 840 16.2% 4.0% 88
Figure 12: Shows that in our target audience, females 21-39, are consuming
chewy granola bars (index: 155) most often with cereal bars (our product)
coming in second in consumption preferences most often (index: 138).
38. 38
MEDIA
Media Objectives
o Create awareness within our target audience of women 21-39
o Goal to reach 400 Gross Rating Point`s in 90 days
o Stay within the media budget, with using mediums of radio, TV, and
outdoor
Key Terms
o Target Audience: those who we wish to advertise to; the group most
likely to be influenced by the advertising messages.
o Index: A rational number telling of how likely people in a group are to
behave, have attitudes of, or believe in a certain action (i.e. people 50+
Index=100, people 21-35 Index=200. Those 21-35 are twice as likely to
fall into that group).
o Rating: the percentage of people watching a specific program at a
specific time.
o Gross Rating Points (GRPs): The total amount of rating points that are
purchased for advertising.
Target Audience (TA)
Our media will be targeting women between the ages of 21 to 39, with an
income of $50,000-$100,000, that live in the Spokane Designated Market
Area.
Size of Target Audience
About 50.3% of the population of Spokane are women. The total amount of
women is 101,362, with 36,150 women in our target age of 21-39 years old.
Reach Needed
Our goal is to acquire 400 Gross Rating Points within the first 90 days. To
accomplish this, we will need to buy about 31 GRPs per week for the first 13
weeks of our advertising campaign.
39. 39
Media Consumption
The top media channels consumed by our target audience are radio, television
and outdoor.
Radio:
Women in our target audience tend to listen to the radio the most during late
afternoon hours, between 3pm and 7pm. Also, of women in our target market,
34.2% listen to the radio during the weekends and late afternoons (Index=135).
(Simmons)
(Simmons)
Television:
Most women in our target audience have children, and as a result, 20.3% of
those in our target audience have a 204 Index for watching Disney Channel.
(Simmons)
Additionally, Simmons data show that those in our target audience have high
viewership of MTV (19.7% of TA, Index=189), TLC (27.9%, Index=149), the
Food Network (26.6% of TA, Index=128), ABC (20.1% of TA, Index=133), TBS
40. 40
(28.7% of TA, Index=124), Nickelodeon (16.0% of TA, Index=203) and
Entertainment TV (20.1% of TA, Index=189).
So, now that we knew what our target might be watching, we needed to learn
when. The Simmons database showed that nearly a quarter of our target
audience were 9% more likely than average to watch television between the
hours of 10:00a.m. and 1:00p.m.
(Simmons)
Outdoor Advertisements:
In order to reach our target audience effectively while also staying within the
parameters of the budget, we recommend the utilization of posters, a form of
outdoor advertisement.
Of those that pay a lot of attention to billboards, 22.2% fall in our target
audience group, and index at a high 121.
Posters:
(Simmons)
Media Scheduling/Frequency
Our media plan will focus on using a flighting schedule to reach our target
audience. The information we gathered during primary research at Walmart
and Dissmore’s shows that the highest amount of breakfast bars is sold at the
beginning and the end of the school years. Therefore, we recommend
spending the majority of the budget in the months of August through November
as well as April through June.
44. 44
CREATIVE
In order to spark awareness for Brightside Morning Snacks, we developed a
campaign that focuses on the product’s unique features. When compared
against the competition already in stores, Brightside Morning Snacks was
superior to these competing products in the nutritional categories of protein
and fiber. After some research into nutritional components and their effects
on the body, we discovered that both protein and fiber lead to the sensation
commonly referred to as “being full”.
To express this advantage over our competitors, we chose to base our
campaign around the slogan “Don’t let hunger hold you back!” This slogan
emphasizes the products unique selling proposition of containing high protein
and fiber allowing the consumer to stay full for longer. In addition, we found
that our target audience lives a fast-paced and busy lifestyle.
Therefore, we wanted to stress the product’s ability to let our consumers focus
on the important things in there lives such as family and work, instead of
constantly thinking of their next meal. We also added the phrase, “Be bold. Be
brave. Be bright” to our campaign. This phrase embodies the end goal of
anyone who eats Brightside Morning Snacks, which is the ability to achieve
what you want to achieve with out hunger getting in the way.
Creative Brief
What are we selling? Why are we here?
Brightside Morning Snacks are a breakfast snack that satisfies hunger with out
sacrificing essential nutrients. The soft baked granola and 16 grams of whole
grain per serving make this product an excellent option for fiber. A variety of
flavors allow the consumers to pick between multiple sweet and delicious
options. In addition to the benefits of the snack itself, it also comes in a tray
allowing your snack to be mess free.
45. 45
Who are we talking to?
Our target audience for our campaign is females 21-39. These women are
mothers who are in need of convenient snacks to get their children through the
difficult hours between meals. Whether handling a chaotic morning before
dropping the kids of at school, or simply satisfying hunger while at the office,
Brightside Morning Snacks will be able to accommodate all snacking needs. As
a demographic that is concerned with their health and including fiber in their
diet, reaching for Brightside Morning Snacks is not only a viable option, but the
best option for them.
Why? What is the most significant change we can create, as an
objective? OR What obstacle are we trying to over come?
The overall perception of snack bars is that while they are tasty and
convenient, they are not filling. Because Brightside Morning Snacks are high in
protein and complex carbohydrates, these snacks are made to keep their
consumers full for longer in between meals without sacrificing taste and
convenience.
How? What can propel this change as a strategy? What are we
trying to say? What is the most important thing we need to say?
With our consumers eating Brightside Morning Snacks between meals, not only
is their hunger being diminished, but they are saving time and effort at the
same time. This extra time and effort can be used for more important things
such as spending time with family, working hard for a promotion, or some much
deserved “me” time.
What makes this believable? What are the key insights?
Healthy foods are constantly becoming more prevalent in peoples lives. With
the media constantly reminding the general public of the consequences of
unhealthy behavior, eating quality foods is a trend that is here to stay.
For a target audience that is constantly competing in the working world to
better themselves while juggling starting a family and the struggles that come
with it, there is never enough time in the day. Anything that makes the day a
little bit easier is welcomed greatly.
46. 46
What do we need to keep in mind? What are mandatories?
We need to emphasize that the optimistic qualities of the product. By eating
Brightside Morning Snacks you’ll start your morning with a smile on your face
and keep it.
Campaign Proposition
Brightside Morning Snacks keep you full without sacrificing taste or
convenience.
Gap Maps
Calories vs. Protein Positioning
47. 47
Fiber vs. Protein Positioning
Number of Flavors vs. Mess-Free
55. 55
Sales PROMOTION
Objectives
1. Generate product trial
2. Increase product/brand awareness
3. Encourage repeat purchase
Tactics
1. Trade Coupons: On-Pack
2. Trade Coupons: In-Pack
3. Sampling
Trade Coupons
Trade coupons are effective when helping increase short-term sales and
typically have a higher usage rate when compared to manufacturer coupons.
Using trade coupons will help us generate product trial, which will help us
achieve objective 1. Trade coupons can also increase sales after the
promotion ends (“slippage”).
We considered putting coupons in newspapers, but research shows that in-
pack and on-pack coupons have a 6 to 10 times higher redemption rate.
Trade coupons will also help us reach Objective 3 because they are able to
convert triers to regular users and can reach a large number of prospects
quickly.
56. 56
On-Pack Coupons
To reach objective 1 and increase trial, we recommend using on-pack coupons
at the very start of the campaign. Starting August 1st
, 2015, boxes should
include $1.00-off on-pack coupons. This will coincide with a heavy-up time on
our pulsing media schedule that extends from August 2016 to October 2016.
Since this is a new product, we need our price-off to be on the high-end at
$1.00 in order to be perceived as a true value to customers, especially since
we have a smaller market share.
We will put an on-pack coupon on every box put out during the first 3 months,
so an estimated 13,632 coupons total. These coupons will be valid from
August 1, 2016 to November 30, 2016. Having a short, four-month expiration
date can create a sense of urgency and aid in generating trial. We believe
having in-store coupons will increase sales greatly, considering 70-80% of
decisions are made in the store.
In-Pack Coupons
We recommend using in-pack coupons as a tactic to reach Objective 3 of
encouraging repeat purchase. We will push out these couponed packages
during the final 3 months of our campaign to encourage those who
participated in trial to keep on buying Brightside after the campaign ends.
The in-pack coupon should look the same as the on-pack coupon, but is valid
from May 1, 2017 to September 30, 2017.
57. 57
Sampling
We recommend sampling out Brightside Morning Snacks through in-store
demonstrations at specific stores in our test market in order to reach
Objective 2 of creating brand awareness, as well as generating product trial.
Sampling is sometimes the only way to convert people, and with such a
saturated market, it may be the best way to cut through the clutter.
Furthermore, with sampling we can be selective and generate quick reactions
from our target.
Since demos can be expensive, we recommend being very strategic about the
day and time of the sampling. Since our campaign is capitalizing on parents
getting children ready for back-to-school time, demos should take place the
weekend before school starts. This will make parents aware of the brand
during a time when they are searching for the next great snack to satisfy their
kids.
The first day of school for the Spokane School District in 2016 is September
5th
. Therefore, our demo should be scheduled for the Saturday leading up to
the school start date. We advise that a sampling demonstration be held in 26
stores in the Spokane DMA on September 3rd
.
Some stores do not allow for in-store sampling, which is why we will not be
able to demo in all 71 stores in our test market. Rosauers, Yokes and Walmart
said they do in-store demonstrations, so we will sample in those specific 26
stores.
Sampling is the most direct way to get consumers to try the product and see
for themselves what Brightside Morning Snacks have to offer. We believe this
Saturday event leading up to the first day of school will be an effective
strategy in reaching Objectives 1 and 2 and will allow us to reach many
mothers in our selected target audience. The majority of our money for sales
promotion ought to be spent here because it is of the utmost importance that
we get our target to try the product—sampling can guarantee this goal.
58. 58
PROMOTIONAL BUDGET
On-Pack Coupons
We recommend distributing 13,632 coupons offering $1 off the purchase of
Brightside Morning Snacks.
Distributing 13,632 coupons with a 3.4% response rate gives us 463.488
coupons redeemed.
Reimbursement to store 463.488 x $1.00 = $463.49
Retailer handling fee 463.488 x $0.08 = $37.08
Clearing house fee 463.488 x $0.04 = $18.54
Total $519.11
Sampling
We recommend sampling in 26 stores, including Wal-Mart, Rosauers & Yokes.
Store fee $150
Stores 26
Days 1
Total $3,900
In-Pack Coupons
We recommend distributing 13,632 coupons offering $1 off the purchase of
Brightside Morning Snacks. Distributing 13,632 coupons with a 3.4% response
rate gives us 463.488 coupons redeemed.
Reimbursement to store 463.488 x $1.00 = $463.49
Retailer handling fee 463.488 x $0.08 = $37.08
Clearing house fee 463.488 x $0.04 = $18.54
Total $519.11
60. 60
BUDGET
Total
Budget
Item
Cost
Total
Budget
for
Product
$152,036.56
Advertising
Budget
(60%
of
total
cost)
$91,221.94
Estimated
Slotting
Fees
(for
3
Flavors
for
71
Stores)
$36,210
Remaining
budget
(Sampling,
Promotions,
etc.
after
Slotting
Fees
$55,011.94
Sales
Promotions
Item
Cost/Amount
On-‐Pack
Coupons
Reimbursement
to
Store
$463.49
Retailer
Handling
Fee
$37.08
Production
Cost
$0.00
Clearing
House
Fee
$18.54
Total
$519.11
In-‐Store
Sampling
Store
Fees
$150.00
Stores
26.00
Days
1
Total
$3,900.00
Itemized
Budget
Media
Costs
Media
Individual
Cost
Units
Weekly
Cost
Campaign
Cost
Television
NICK-‐TV
Sa-‐Su
9am-‐7pm
$25.00
50
$1,250.00
$8,750.00
KREM
2
News
@
5PM-‐Sat
$105.00
10
$1,050.00
$10,500.00
Radio
KXLY
FM
$50.00
15
$750.00
$8,250.00
KZZU
FM
$50.00
10
$500.00
$2,500.00
KEZE
FM
$25.00
10
$250.00
$4,750.00
Outdoor
10
Posters
$7,500.00
1
$7,500.00
$15,000.00
Totals
$11,300.00
$49,750.00
61. 61
In-‐Pack
Coupons
Reimbursement
to
Store
$463.49
Retailer
Handling
Fee
$37.08
Production
Cost
$0.00
Clearing
House
Fee
$18.54
Total
$519.11
Sales
Promotion
Total
4,938.22
Total
Costs
Remaining
Budget
$55,011.44
Total
Media
Cost
$49,750.00
Total
Promotion
Cost
$4,838.12
Total
Cost
$54,588.12
Remaining
Budget
$423.32
62. 62
BIBLIOGRAPHY
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coupons/
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