Cheeze its

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Student project by Demur et al.

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Cheeze its

  1. 1. Brief History  • Cheez-It’s were first sold by the Green & Green Company in Ohio, 1921. • After the Wall Street Crash of 1929, The Green & Green Company was acquired by The Sunshine Biscuit Company, founded in 1902 as the LooseWiles Biscuit Company. • The Keebler Company acquired Sunshine in 1996, and Keebler was in turn acquired by Kellogg in 2001. Cheez-It squares are still sold under the Sunshine label.
  2. 2. Consumer Analysis   Parents looking for a tasty snack for their children.  Cheese lovers looking for a flavorful snack  School kids looking for a tasty snack during lunch time.  College students  Sporting event fans   Target Group Definition  --Children ages 7-12 --Teens ages 13-19     Demographics: --Women and men ages 21-45 Psychographics: --Middle Class families with children --Likely to try new products -- Quick and easy
  3. 3. Expanding the Brand   Cheez-It offers one specific snack with dozens of variations.  Offers a snack that doesn’t need dip, or sauce to enhance the taste  Sold in most grocery stores  Offers smaller ―snack‖ sized boxes/bags for a snack on the go
  4. 4. Competitive Points of Differentiation  of preferences.  Different flavor to satisfy a variety  A snack after a long day of work/school  A ―game day‖ snack  ―Real cheese matters‖
  5. 5. Direct Competitors   Cheese Nips  Goldfish
  6. 6. Cheese Nips   Created in 1961 originally owned by Nabisco in 2001 Nabisco merged with Kraft and Cheese Nips were produced with Kraft cheese.  Now Cheese Nips is owned by Mondelez International the umbrella company of Kraft.  Mind Of Consumer: Cheese Nips are coated in something similar to Cheetos dust, where it leaves orange droppings all over your fingers.  Figures cannot be released #CompanyPolicy
  7. 7. Goldfish   Created in 1962 when Margaret Rudkin discovers the snack cracker on a trip to Switzerland and returns with the recipe.  Goldfish is owned by Pepperidge Farms and Cheddar is the is the highest selling flavor of goldfish in the US.  Mind of Consumers: Goldfish creates a orange clingy paste in your mouth.  From 2009 to 2010 sales have increased 9.5%
  8. 8. Indirect Competitors   Wheat Thins  Triscuits  Saltine  Ritz
  9. 9. Triscuits   Made in 1903 in Niagara Falls New York originally owned by Nabisco. Now owned by Mondelez International the umbrella company of Kraft.  Mind Of Consumer: Healthier Option made out of whole wheat wafers  From 2009 to 2010 sales have increased 1.4%
  10. 10. Ritz Crackers   Introduced in 1934 by Nabisco. It conjured up images of wealth by alluding to the posh RitzCarlton Hotel in New York, which elicited the promise of better times to come. This had great appeal to Americans during the Great Depression years.  Mind of Consumer: Everyone’s favorite cracker lightly salted and has great taste.  From 2009 to 2010 sales have decreased 12.8%
  11. 11. Main Competitor 
  12. 12. Brand Analysis: Kellogg   Kellogg Company was formed in 1906 as a company focused on ready-to-eat breakfast cereals.  Despite the death of W.K. Kellogg’ in 1951, Kellogg continued to expand, building plants in England, Australia, Latin America, and Asia.
  13. 13. Kellogg Continued   Now, Kellogg is a leading producer of ―food innovations‖  World’s leading producer of cereals and one of the leading producers of snacks and frozen foods.  Company Statement:  ―Our well-loved brands produced in 18 countries and marketed in more than 180 countries include CheezIt®, Coco Pops®, Corn Flakes®, Eggo®, Frosted Flakes®, Kashi®, Keebler®, Kellogg's®, MiniWheats®, Pop-Tarts®, Rice Krispies®, Special K®, and many more‖ (Kellogg Investor Relations)
  14. 14. Brand Analysis Cheez-It  The Cracker category of Kellogg’s is currently a 122 million dollar category.  Yearly growth rate of almost 10%  According to Kellogg’s, a category trend is that the single serve cracker packs are driving their sales growth. (Kellogg Convenience)
  15. 15. Current Brand Position   Currently, the three ounce single serve packaging of Cheez-its is the most popular and is experiencing sales growth among all of the different flavors.  Additionally, Cheez-it has the highest distribution in the cracker category( 88.7 AVC).  According to Kellogg, this variety in serving sizes allows sellers to meet varying needs of customers. (Kellogg Convenience)
  16. 16. Recent Advertising Expenditures  ―Choose the Cheese‖ interactive publicity campaign  Asked user to choose between Asiago, Colby, or Romano for the next flavor of Cheez-Its.  According to Kellogg, ―A samplepack giveaway and in-store samplepack sales let consumers shape the future of the brand, and after38 million votes, the winning flavor— Cheez-It Colby— reached supermarket shelves nationwide‖ (Kellogg Investor Relations)
  17. 17. ―Real Cheese Matters‖   Other advertising expenditures include campaigns such as the ―Real Cheese Matters‖ commercial campaign in which the company stressed one of the main competitive points of differentiation for Cheez – Its, which is that they allow their cheese to mature to provide the best taste offerings to consumers.  The campaign was able to increase ad support by 22 % to $33 million over the year of the campaign, according to Neilson findings.
  18. 18. Recent Earnings   According to Kellogg’s Quarter4 2012 Earnings Release, the US Snack category increased sales by 1.9%, reaching a quarter sales high of $865 (internal net sales MM) in quarter 3.  International growth (2012 full year)  Europe : -3.8%  Asia Pacific: 2.7%  Latin America : 6.7%
  19. 19. SWOT Analysis   Among Kellogg products, at this point, Cheez-It is taking a back seat to some of the other products which are being featured at the forefront.  Instead of focusing on diet and health, Cheez-Its takes the approach that it is made with real cheese. While as a company, Kellogg does offer diet food products, the specific Cheez-Its brand does not, which may be a drawback.
  20. 20. Brand Loyalty   While the weakness illustrated may impede on Cheez-Its ability to garner new customers, a strength of the brand is that because it has been available for so long, it has very loyal consumers. Families who have been buying and consuming Cheez-Its for a longer period of time are more likely to continue to support the brand.  A snack for any time of the year  Few competitors offer the same type of cheese snack.  Over the years the original recipe has stayed the same, tweaks have been made to create new tastes.
  21. 21. Promotional Strategy   Point-of-Sale Promotion and End-Cap Marketing  Social Media  Contests  Product Giveaways
  22. 22. Advertising Plan   Sponsoring Up til’ Dawn  Promote at Food Markets and Student Union  Television Advertisements  Sponsor A College Bowl Game  Print/ Online Media  Social Media
  23. 23. Up til’ Dawn   Cheez-It is joining the Colleges and Universities across the United States. According to several Universities in the northeast area:  Parking Fee: Complimentary  Cost for small Cheez-It bags: on average 400 students; $1.00 per bag= $400 per college  Producing t-shirts with Cheez-It logo: $5,000 per college
  24. 24. Food Markets & Student Unions   Promotion at food markets and student unions on University campuses. There will also be a $1.00 off coupon. Prices based per University.  -Cost for $1.00 off coupons: $400  Cost to hand out snack bags at student unions= $250  Cost for sampling at food market= $50 (tray with Cheez-It)
  25. 25. Sponsor A College Bowl Game   Sponsoring a college bowl game will get our name out there  People in attendance will get Cheese heads and instead of pop corn the audience will get Cheese Its.  The game will be televised and reaching the target audience and the audience will see Cheez-It commercials. This would also be a good time to have viewers Tweet or Instagram their ―I Snack Moments‖.  - Sponsoring a bowl game will cost $1.4 billion.
  26. 26. Print/ Online Media   Online media ads will be shown on Facebook, Hulu and Pandora. Print advertisements will be People Magazine.  -Full Page in People- $324,400  -Facebook -Choose to pay only when people click (CPC) or see your ad (CPM)  -Hulu- Advertising on Hulu is currently sold on a CPM basis between $25-$30  -Pandora – $10,000  -YouTube – $375,000
  27. 27. Social Media & Mobile Site   Start a Twitter with the handle @RealCheez-Its, to build customer relationship and open the lines of communication with customers and allow them to give feedback on our products.  As part of our campaign we will have followers Tweet or Instagram pictures of them eating Cheez-Its as part of the ―I Snack Campaign‖.  Mobile Site http://clqs.us/p/PeLlHniS
  28. 28. Magazine Advertisements  Name Audience Reader Age People Magazine 97% Females 31% under the age of 25 ESPN Magazine 80% Males 88% between 18 and 54
  29. 29. Internet Advertisements  Name Audience Age Pandora 1,371,488 Between the age of 18 and 65 YouTube 128.2 Million 67% between 18 and 34 Facebook 158,848,960 98% between 18 and 24
  30. 30. TV Advertising  Network Name Of Show Cost NBC Sunday Night Football $545,000 FOX X-Factor $201,875 CBS How I Met Your Mother $187,653 ABC Dancing With The Stars $160,466 FOX Family Guy $239,866 NBC The Voice $239,866 MTV MTV $190,000
  31. 31. Advertising Plan   People Magazine has an audience of 97% Females, the median age is 29.8 and 31% of its readers are under the age of 25.  ESPN Magazine has an audience of 80% males, the median age is 34 and 88% of readers are between the age of 18 and 54.  YouTube reaches 128.2 million people, 58% are male and 58% are female, and 67% are between the ages of 18 and 34.  Pandora Internet Radio reaches an audience between the age of 18 and 65.  MTV reaches 500,000 television viewers a day 64% of the viewers are between 18 and 34 years old, 56% are females and 44% are males.
  32. 32. Advertising Plan             Pandora Internet Radio $10,000 YouTube $375,000 Facebook $1,000 Sunday Night Football $545,000 MTV $19,000 How I Met Your Mother $187,653 The Voice $239,866 Family Guy $276,690 X-Factor $201,875 Dancing With The Stars $160,466 Contingency Fund $500,000
  33. 33. Hulu Ad 
  34. 34. Pandora Ad 
  35. 35. Hulu Ad 
  36. 36. Pandora Ad 
  37. 37. Magazine Ad 
  38. 38. Magazine Ad 
  39. 39. Magazine Ad 
  40. 40. Magazine Ad 
  41. 41. Magazine Ad 
  42. 42. Magazine Ad 
  43. 43. Magazine Ad 
  44. 44. TV Commercial 
  45. 45. TV Commercial 
  46. 46. TV Commercial 
  47. 47. TV Commercial 

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