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HUBS (2015/16) eSubmission - Standard i
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HUBS (2015/16) eSubmission - Standard ii
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HUBS (2015/16) eSubmission - Standard 1
How to conduct a marketing campaign when bringing a
healthy crisp product to the UK market
Contents
 Introduction 3
 Aims and objectives 4
 The product 4
 The Pricing strategy 7
 How to promote the product 8
 Conclusions and recommendations 11
 Appendix 12
 Bibliography 16
Introduction
In the twentieth century potato chip sales have continued their steady rise in the UK, but since
2013 potato chip sales have hit a plateau, see figure 1.4. This is largely because of rising health
concerns and attitudes to obesity in the western world including diet-related illnesses,
cardiovascular disease, diabetes and several types of cancer, Thunstrom & Nordstrom (2012).
These have very much become a focus to many people’s lives and particular unhealthy foods
have gained a negative reputation because of this. Many public and private institutions have
made efforts to promote a healthy lifestyle through the use of information campaigns, food
labelling and tax reforms. Crisps often contain high rates of fat and calories and when eaten
regularly can lead to weight gain: with a third of British children eating crisps daily, 43% of
adults also doing so, and nearly a fifth of children having two bags or more, obesity has become
a real issue and tie with crisps, a New England Journal of Medicine study found that the daily
consumption of an ounce of crisps can lead to weight gain of 1.69 pounds over four years,
Macleod (2013), Ramsden (2013), Guardian.co.uk (2010). Crisps also contain a high level of
salt; this can lead to a high blood pressure which is found to lead to an increased chance of heart
attacks, heart failure and sudden cardiac death, Mayoclinic.org (2014), Sugarman (2009), Colia
(n/a). High cholesterol can be a problem due to the high amounts of fat, saturated fat and
transfats; this is because of the oils used when cooking crisps and the cooking process itself.
Having high cholesterol can lead to coronary heart disease, strokes, peripheral arterial disease,
heart attacks and narrowing of the arteries, see figure 1.6 Nhs.uk (2015), Colia (N/A). Other
health issues such as type 2 diabetes, certain cancers and dental hygiene problems are being
linked to fatty foods like crisps too. Over time, salt, sugar and fat contents in crisps have
dropped, but because they are still fried in fat, calories till remain high, Guardian.co.uk (2010).
Because of these rising issues and awareness from adults for their health and their children’s
many new and existing players in the market have created healthier versions of crisps, North
(2015) that reduce or eradicate ingredients such as salt and fats, use different oils for cooking and
different cooking methods and have increased quantities of fibre with the use of more rice,
wholegrain and wheat ingredients. Examples of these include Walkers Sunbites, which have had
much recent success, also Food Should Taste Good, Tyrell’s and Kettle vegetable crisps, and
finally fruit crisps. The sub-market is still fairly young, but many products have good success for
example since its marketing campaign Sunbites has had annual sales increases of up to 26%,
Mintel (2016), this project aims to design a marketing campaign for a new healthy crisp that
addresses many modern health concerns and provides nutrition too. Much consumer research has
been done into finding out if people are willing to try and move to purchasing healthier crisps,
HUBS (2015/16) eSubmission - Standard 2
and has proved positive regarding the healthier crisp market for example a Mintel (2014) report
showed that almost a third of consumers would move to an apple or pear based crisp, Maxwell
(2015). Reports suggest that much of the UK potato crisp growth has come from healthier
products; this is also evident through the growing players in the market.
Aims and objectives
The main aim of this paper is to produce a strategy for a marketing campaign for bringing a new
healthy crisp product to market. It will be aimed at the ‘Potato Chips Group UK’ and aims to
provide a guideline in how to conduct a marketing campaign for any of the Crisp companies that
are part of this group. Whilst healthy crisps do already exist, this paper will look at what
successes there has been, the different types of healthy crisp and create a whole design that
covers most elements of a marketing campaign. Crisps will be focused on to a large extent but
much of the design and research is relevant to popcorn, nut s and other similar savoury products.
This design aims to be a guideline and be relevant to all different manufacturers in the market
and so be changed and fitted accordingly to whichever particular company decides to use it. The
product designed aims to be one that counters to a certain extent the issues raised in the
introduction as well as provide health benefits too.
The strategy aims to include the pre-launch and introductory stage of the product life cycle. The
design will mainly cover how to design the product, introductory pricing strategies and how to
promote it, but will also touch on issues such as what market research needs to be done.
To produce the strategy effectively, many different sources will be used: these will include
healthy eating, market and product reports, literary texts and journal and web articles as well as
relevant news stories and case studies. The use of marketing theory combined with up to date
reports highlighting successes in the market will help to provide as accurate a design as possible.
Market information and case studies will be predominantly from UK sources as to keep it as
relevant as possible for the Potato Chips Group UK.
The Product
This section will look to provide a guideline on how best to produce the desired crisp that
combats to a certain extent the health issues and provide health benefits too. The ingredients, the
process of cooking and the packaging will all be designed to meet the marketing objectives, and
give guidelines on how to design a bag that shows off the products benefits, healthy, tasty and
being a premium product.
Baker (1999) explains the stages of designing a product as:
 Strategy
 Idea generation
 Screening
 Concept development
 Business analysis
 Product development
 Test marketing
 Commercialization
A well performed design process will help the crisps final aesthetic and ergonomic properties,
thus increasing value and perceived value, Brassington & Pettitt (2013). At the rate the market is
HUBS (2015/16) eSubmission - Standard 3
growing it is important to be innovative with design and contents as to stand out over the current
and successful market players and being more than just a ‘healthy crisp’.
As discussed in the introduction there are many health issues with most brands of crisp. The
things that need to be addressed include reducing and removing the amount of:
 Salt
 Fat, saturated fat, unsaturated fat, polyunsaturated fat and transfats
 Calories
 Artificial flavours, colours and preservatives
 MSG
The product can look to increase:
 Levels of wholegrain
 Fruit/vegetable/rice quantities
Other things that can be considered are:
 Nationality of potatoes
 Which cooking oil is used
 Cooking method
 Vegetarian/vegan/ gluten free/ kosher/ halal
 Organic
It won’ be possible to meet all of this criteria but creating a product that satisfies as many as
possible will help with the overall value of the product.
Crisps are most commonly made from potatoes, but recently there has been large growth in the
use of other core ingredients such as vegetables for example Kale, Cassava, pea, and bean, fruit
crisps including apple and pear, as well as the use of multigrain or whole grains and rice: these
typically are low in fat and calories as well as increase the fibre content healthyeconomist.com
(2011), North (2015), also see figure 1.1. Successes of these kinds of products include Walkers
Sunbites, Tyrell’s vegetable crisp range, Scrubby’s, Walkers Pops and Food Should Taste So
Good multigrain tortillas, PepsiCo (2011), UK.Iherb (2016), Mintel (2016), North (2015), Steele
& Hermiston (2015). The nationality of the core ingredient is something that companies such as
Walkers and Tyrell’s have given attention to; though not one of the main thoughts of the
customer when purchasing a product, locality of ingredients, if promoted effectively, can affect a
customers buying decision to a certain extent. When making this decision of where to buy the
core ingredient from, it’s important to know the costs of each, but overall to promote this product
British or Irish produce should be used as to further solidify the product as a premium one. In
conclusion the core ingredient very much depends on each individual company’s marketing
objectives, how relevant the product is to the brand and what technology is currently owned or
readily available.
Another main factor to address is the way the crisp is cooked. Crisps that are baked rather than
fried will reduce saturated fat contents by around 70% as claimed by Walker’s and Tyrell’s.
Popped crisps are also a viable option of cooking; using micro pellets of potato and rice seasoned
with oil and cooked under a high pressure and temperature. Brands from companies like Walkers
and Kellogg’s using this method have seen sales skyrocket with support from promotional
campaigns advertising the fact that they have 50% less fat than ordinary potato crisps, Bamford
(2014), Walkers.co.uk (2016). I would recommend the baking method because even though
alternatives have had similar success, keeping the crisp itself familiar to the customer allows to
appeal to a larger target audience, but once again this choice depends on marketing objectives
and how niche you want the product to be.
HUBS (2015/16) eSubmission - Standard 4
The use of oil for seasoning will help to season the product, but in production you must choose
the best oil that optimises taste while keeping down fat and saturated fat levels, all while still
keeping enough to make sure there is little reaction with oxygen during the cooking process,
Leech (2015). Wallkers.co.uk claims their use of rapeseed and sunseed blend has meant a 75%
lower rate of saturated fat, but Leech (2015) explain how industrial vegetable oils lead to high
amounts of polyunsaturated fatty acids. Leech (2015) and Wich (2015) recommend coconut,
olive or avocado oils, as these keep polyunsaturated lower and reduce additives, but are higher in
saturated fats. There is much less competition with that use these oils and only from small
players in the market. Once again the marketing objectives may well play a part in this decision
but if possible it is worth experiment and conducting thorough primary research to find the
optimal seasoning.
As discussed in the introduction, high levels of salt consumed over a sustained period of time can
lead to a high blood pressure. With crisps often containing a high amount for example Walkers
ready salted having 0.46g of salt per pack which is 8% of an adult’s daily intake. Walkers
Sunbites have a much lower rate of 0.17g, which is only 3% of an adults recommended intake.
The trade-off often with salt is that more salt improves taste (as it is flavouring) up until a certain
point and being is increasingly unhealthy, also improving the health benefits and taste will
increase the willingness to pay, Thunstrom & Nordstrom (2012). Typically consumers rank taste
over nutritional content and is the most important factor when making decision regarding food,
Lennernas et al. (1997) & Glanz et al (1998), PepsiCo (2016). The salt in crisps can simply be
reduced by lowering the salt usage, or changing the type of salt, for example sea salt (with lower
sodium levels) during the salting stage of production. The salt content must be low enough to
attract the target market and be promotable but the taste must be significantly good, this can be
best discovered through primary market research, for a 25-40g pack levels of 0.15g and 0.3g is
an acceptable level.
A wide range of flavours keeps the target audience interested and loyal as well as targets a larger
potential customer size; further additions to the product mix width will help this throughout the
product life cycle, Brassington & Pettitt (2013), Bradley (2003). As discussed before, there is an
importance in this market of customer retention and attraction, offering a wide array of flavours
can help to attract and keep customers. While this is important during the launch,
Learnmarketing.net (n/a) explains how it makes it harder to manage the brand and makes it
harder to specialise. In the cooking process, consideration must be taken when using flavourings,
not using artificial flavourings will help the brand image and using the right flavourings can keep
the saturated fat content down, Goodtoknow (2015). For the introductory stage of the product
life cycle I thus propose the launch product to contain between 3 and 5 flavours, with a ready
salted or equivalent flavour as a must, as it is consistently on of the most popular and
recognisable flavour of crisp, also cheese and onion and salt and vinegar or equivalents are often
as popular and must also be strongly considered, Jordan (2014).
The design of the product is essential to adding perceived value and communicating effectively
the brand and the products strengths, and with healthy labelling in demand Thunstrom &
Nordstrom (2012), this is especially important. The packet itself must match the colour schemes
and be consistent with all promotions for the product. The colours and design must promote the
health benefits of the product and the crisp itself must look different from the standard yellow
fried, oily, fatty potato chip, for colour scheme see promotion, see also figure 1.8 for examples.
For whatever health benefits are found after producing the crisp, can be presented on the packet
on the front and/or back, though you must be careful as not to overwhelm the customer. Many
products in the market often just stick to their most prevalent healthy grabber, it must also be
clear by the design of the packaging that this is a premium product and so reflects the product
inside and the price you are paying for it; this can be done through the use of more artistic fonts,
HUBS (2015/16) eSubmission - Standard 5
more innovative packaging materials, effective imagery and textures, catchy and informative
tagline again see figure 1.8: primary research can be conducted to provide opinions about the
packaging. Henley (2010) explains how sharing bags have grown in recent years and now
account for 29% of the market. I don’t believe this is a viable option though because
thegrocer.co.uk (2014) explains how many who use share bags eat them by themselves,
furthermore the levels of fat, calories etc. will rise as the packaging size increases thus
contradicting and making it more difficult to communicate any health improvements. Thus I
propose sticking to the normal 25g to 40g standard size; this will also help as customers are
familiar with the concept. The product should be sold in single and multipack versions. Single
packs will improve new customer rates through ease of purchase and impulse buying, as well as
being seen as more of a one-off treat, while the multipack will increase customer retention with
the intention of customers sticking with the brand, for example buying the product every week as
part of a weekly shop. Tyrell’s claims they have had success with their vegetable crisps, without
advertising and has come through package design and media press alone, North (2015), see
figure 1.9 for packet, as well as Sunbites gaining success with packaging redesign that had time
to take effect before the promotional campaign started, 2012.effectivedesign.org.uk (2011).
Because of the quality and pricing strategy adopted this product will sit central but more towards
the premium product end of the Kotlers Price/Quality matrix see figure 1.7. In conclusion for
production I propose:
 Thorough primary research to find the right balance between health benefits and taste
 Thorough primary research to find the relationship between willingness to pay and the
increase in taste and health benefit
 Addressing of the marketing objectives
 Packaging that communicates health benefits and the brand
The Pricing strategy
Choosing the correct pricing strategy and the exact price depends on a lot of factors such as the
competition, the costs involved, marketing objectives, corporate policy and the laws and
regulations, Bradley (2003), Armstrong & Kottler (2000). This section aims to choose the most
appropriate strategy during the introductory phase of the Product life cycle and explain why it is
appropriate for a healthy premium crisp. Bradley (2003) explains the three approaches to price
are the cost, the customer and the competition; in the introductory stage competitor oriented
pricing stages are the most important though cost and customer oriented issues must still be
considered, Blythe (2005).
Many of the existing products in the healthy crisp market have a low new customer rate, but a
very high retained customer rate for example Sunbites, PepsiCo (2011). This suggests that not
enough, or the correct pricing and promotional strategies are being employed to attract
customers, yet consumers feel the taste is satisfactory and customers believe in the product.
Because of this a penetrative pricing strategy would seem very viable as to undercut the
competition and so attract as many customers as possible to try the product before the
competition has time to react. Unfortunately for this premium product specifically there are
many issues with penetration pricing. Brassington & Pettitt (2013) explain that a side effect of
low-price promotions can see competitors follow and match the price, Blythe (2005) explains
how if competitors react quickly enough there could be the possibility of a price war which
favours no one but the customer. The more important issue is that “The price reflects value”,
Bradley (2003), Baker and Bass (2003); this rule often runs true and with the proposed product
HUBS (2015/16) eSubmission - Standard 6
being a premium one, it is important to retain that image through its price. A multiplying factor
of this is that consumers get used to paying a lower price from the promotion and shift focus
away from quality and towards the price, Cooper (2011), Cuthbertson (2006).
Thus in conclusion, I propose a price skimming strategy. While attracting new customers has
been an issue for similar products and needs to be addressed, I believe this will be done through
effective promotional techniques and communication of the products quality and
ingredients/health benefits. Having an original high price will mean customers won’t be shocked
as the price will not change much as the product moves through the product life cycle. Because
of the issue of things like price wars, Blythe (2005) concludes it is often safer to compete on
things like quality. It is against EU law for the manufacturer to force retailers to price at a certain
rate but recommended retail prices can be given in which many retailers selling crisps will be
happy to oblige. This pricing strategy allows for discounts to be easily made in the future too
when appropriate. Each flavour must remain the same price as to avoid confusion and keep
consistency. With crisps price elasticity of demand being fairly high costs must not be too high
as it will lower demand significantly because of the sheer volume of competition and customer
resistance to trying new healthy products, Akbay & Jones (2006).
How to promote the product
As discussed in price the way to attract customers in this campaign will be through promotion.
This section will aim to understand who the target market are, create suggestions for how best to
promote the product to the target market and what avenues will be used to do this. The section
will comment on relevant theory and case studies from within and outside the market and
attempt to cater to most promotional budgets. As discussed before attracting new customers has
been difficult in the market and so promotion alongside effective packaging will be a large driver
for success.
Armstrong and Kottler (2000) explain the elements of the promotional mix; these include
advertising, personal selling, sales promotion and public relations. I will aim to provide
suggestions on what are the best tools for each and most relevant to the market and a vague
guideline what each tool should produce. Whether to use a ‘Push’ or ‘Pull’ promotional mix
strategy will very much depend on the size of the manufacturer, a higher budget for the
promotional campaign and the strong relationship with retailers and wholesalers would suggest a
pull strategy, yet a push for the opposite situation. A mix of both will be used but it is important
to find out whether the marketing objective is to focus on consumers or retailers and wholesalers
to get the product sold, Armstrong and Kottler (2000), Magloff (n/a).
Knowing the target market is essential to choosing and designing the media you want to use for
the promotional campaign, Marketing-made-simple.com (n/a). The target market will differ
slightly depending on exactly how the product is designed and how much it is on the healthy
and/or premium side. Figure 1.1 shows that 21% eat wholegrain snacks/crisps, 20% eat
vegetable crisps and 8% eat fruit crisps, Mintel (2016): it is important to understand exactly who
these consumers are and so create a promotional strategy that is tailored to them. The report also
shows many demographics have little difference including gender consumption and with
different areas of the UK. The most notable demographics I found were that under 35’s are much
bigger consumers than those above 35. Also those in full-time employment have a much higher
tendency to pay for the more premium and healthier snacks. While I suggest targeting these
demographics, there are still significant quantities of over 35’s and non-full-time employed
potential consumers that must not be ignored. Furthermore while only around 20% of consumers
eat healthier crisps, only 8% of the UK citizens surveyed didn’t eat crisps and so while those
interested in healthy crisps need to be targeted there is still a potential to attract a wide array of
HUBS (2015/16) eSubmission - Standard 7
consumers. In conclusion I believe a product more on the taste side than the healthy one is more
mass market and vice versa. Secondly the Mintel reports were done on consumers, not customers
and typically the most popular shopper is the mother in a family; this target market should be
considered heavily but must not be too explicit as there is still a large enough potential male
customers that who do the shopping. Targeting parents will help to increase the number of under
18 year old consumers. Unhealthy products cannot legally be promoted to children, Mangelburg
(1990), and with health concerns being lower down in their priorities for purchasing decisions,
targeting parents can have the whole family purchasing the product. TV adverts ideally should be
presented later in the day so that there is a larger reach to parents and the employed. The other
potential customers that should be marketed are those already buying healthier snacks, see
above, and also healthy products. Creating a superior or innovative product and if promoted
effectively can attract this market.
Armstrong & Kottler (2000) explain the importance of selecting media depending on your target
market. When selecting the media, you want to maximize reach, frequency, impact and the
opportunity to see (OTS), Brassington & Pettitt (2013). For a more mass market product I
believe TV and cinema advertising can be useful: while the reach is ever decreasing, it is also
becoming cheaper and remains an effective way to appeal to the masses, Brassington & Pettitt
(2013), Armstrong & Kottler (2000), it is also a great way to present imagery that addresses the
message and provide information too. But not all campaigns will have such a budget or may be
more niche market, in this situation campaigns need to appeal to the target market: to interest
those in the healthy eating demographic previously mentioned, relevant specific magazines or
TV channels can be utilized that have much higher percentage interaction of reach and a higher
OTS, Armstrong & Kottler (2000). These could include ‘GoodFood’ or ‘Food Network UK’.
Magazines are available online and in paper copy, promotion can be positioned here. Brassington
& Pettitt (2013) explain how the OTS in a magazine is seen on average around 3 times.
Examples of these include: thegreatbritshfoodmagazine.com, healthy-magazin.co.uk or
healthyfood.co.uk just to name a few of a large quantity available on the internet. Subscription
magazines include BBC Good Food, Healthy food, Veggie, Olive, Delicious, again just to name
a few, WHSmith (2016). An innovative product needs to be coupled with promotion that
supports it, Bradley (2003).
To create not just a high quality advert, one must understand the advertising objectives and the
exact message and information you want to present. I believe for this particular product, the
focus of the message should be on:
 Health benefits
 Taste
Thunstrom & Nordstrom (2012) explain how these are some of the most important
purchasing decisions as well as matching the products main selling points. The message
should also include:
 Being a premium product
 The ingredients
 What the Unique Selling Point is
The advert needs to be consistent with the packaging, themes and any other kind of promotion as
to keep the product and the brand recognisable when it customers come to actual purchase.
Walkers Sunbites TV advert, Campaignlive.co.uk (2014), very much focuses on the product
being a great tasting product in a very bland and ‘Cardboard tasting’ healthy snacks market, with
a final mention of the product being multigrain. The theme of the advert was very much about
everyday life and less so about the ingredients and health benefits, as it is very much the
consumer attitude that any snack containing whole/multi grain, wholemeal etc. is healthy,
Wholegrainscouncil.org (2013) and so the taste took centre stage. Sunbites have had large
HUBS (2015/16) eSubmission - Standard 8
success since their marketing campaign in 2011 and have seen sales climb each year and have
now released a wider product range, PepsiCo (2011), Pepsi.co.uk (2016),
2012.effectivedesign.org.uk (2011). This focus on taste also coincides with the Sunbites change
in packaging from one less about the health benefits and more about the taste found with their
primary research, see figure 2.1. From this I believe the balance between emphasizing taste and
healthy/ ingredient contents lies simply with how good the product tastes or is healthy; Sunbites
are more on the tasty side than vegetable crisps but aren’t as healthy, the target market differs
depending on which has priority with a tastier product being more mass market and vice versa.
‘Food Should Taste Good’s product is very much an even mix of taste and health an accordingly
has split their focus evenly.
Sales promotions can be very advantageous to promote a product especially during the
introductory stage of the product life cycle. Examples can include competitions, point of
purchase displays, demonstrations and loyalty incentives. Walkers have had numerous
competitions over the years whether it is a simple ‘enter with a chance to win’ or voting on a
particular flavour to be chosen as a permanent flavour. Walker’s ‘Do us a flavour’ increased the
rate of people seeing a Walker’s ad from 17% to 27%, word of mouth exposure from 6% to 10%,
and got over a million people involved, with 4.3 million visits to walkers.co.uk,
marketingsociety.com (2011), digitaltraingacademy.com (n/a). Stalls or free samples stalls may
not be the best way to gain a large reach but can be useful for more niche market products and
are very good at providing more than just imagery, if the product has sufficient quality, it can get
consumers involved, while also increasing word of mouth; with the rise of social media this can
be further enhanced, Small Business UK (2014). Finding an appropriate food festival such as
Challengers Food festival or Autumn Home and Food fair, will help to delve deeper into the
potential target market of those looking for healthy products and innovative foods, whereas free
sample stalls in town centres can help to reach a wider range of demographics if intended. Using
social media is an effective way to further reach the target market through many different
channels and with many different uses of media, it is also a useful way to interact with
consumers, all at a very low price, Weiczner (2015), Phillips (2015).
Enhanceing public relations can help to get the product and the brand talked about and increases
its public and corporate image, Armstrong & Kottler (2000). This is especially important when
marketing a premium product and will help to promote its positive health benefits. Transparency
can be improved by engaging with stakeholders, working with NGO’s, think tanks and others in
the food industry, PepsiCo (2011), as well as getting involved with schemes such as
‘Change4Life’. Press releases and PR events can also help. Working with the media for example
when Lamborghini gave journalists the opportunity to test their new vehicle, Armstrng & Kottler
(2000) or Food Should Taste Good crisps had their product new range promoted on ‘Ellen’, a
popular US chat show, https://www.youtube.com/watch?v=oBFbrwoYPm8. Other example can
include raising money for charity through collections or innovative schemes that often relate to
the product or brands message, Leigh (2016), McFarlin (n/a). Performing these kinds of schemes
can often be a more effective way than straight up advertising if the budget won’t stretch too far,
Armstrong & Kottler (2000).
In conclusion I believe the most imperative factor to consider is the promotional budget, as this
will decide exactly what forms of promotion are possible. The other things to consider and
perform well must include:
 Is the product niche or mass market
 Who is the exact target market
 Be innovative with promotion
 Use primary research and early sales figures to understand which promotion and
branding is working best
HUBS (2015/16) eSubmission - Standard 9
 Communicate the message and information
Conclusions and Recommendations
The success of the campaign will depend on effective implementation of all parts of the strategy
but the marketing campaigns most important issues to tackle are:
 Always understand what budget and timeframe is available for each stage
 Thorough and frequent primary research about the crisp, the packaging, adverts and the
brand
 Spending time deciding whether to create a mass or niche product so as to implement
promotional strategy appropriately
 Understand your target market
 Spending time planning each stage and sticking to the marketing objectives
 Create an innovative promotional scheme that appeals to the target market
 Create an effective message that supports the product and the brand that is consistent
throughout packaging and promotion
 A skimming strategy that supports a premium product
 Create a product that is healthy but must also be tasty, with multiple flavours, while
adding perceived value too
 Make sure the product stands out in the market with a modern and interesting unique
selling point that is supported by promotion
 Create a product that meets legal standards, for example the FSA salt targets
 Choose and find the best retailers and wholesalers
 Make sure the product is completely finished before the pricing and promotional stage
It is also important to constantly take note of
 Where the product is in the product life cycle
 Levels of sales to determine what is a success
 Market changes
 What the competition is executing
 Customer attitudes
 New technologies
There has been much growth in this segment of the crisp market; there have been many new
entrants from new businesses and larger manufacturers integrating and bringing their own new
products and so it is becoming increasingly important to perform all of the issues above with
time, care and with whatever budget is available. It is further important to try to maintain sales
growth as many existing players such as ‘Snack-A-Jack’ have been hit very hard by rising
competition, North (2015), bringing out more flavours, adding more promotion and
understanding the market can help to do this. After Sunbites’ success they have expanded into
crackers with dip and pitta bakes, North (2015), walker.co.uk (2016). It is finally important to
note that if the campaign fails first time it is important to learn and if possible have a re-launch:
Walkers Sunbites did this and where much more successful after a second campaign seeing sales
rise 26% in just the first four months, PepsiCo (2011).
This study aimed to provide a guideline for a marketing campaign, this study can be heavily
supported with each section researched in more detail: there is much more that can be done in the
creation of the product, including a list of ingredients, how exactly to produce the product and
how to test the product. Extremely little research was done about where to sell the product too.
The promotional guideline depends very much on the product; if a certain product is created, a
specific promotional campaign can be created that matches the product and that uses the
HUBS (2015/16) eSubmission - Standard 10
suggestions given in this study while designing in detail each stage and type of promotion that
takes place. Results of actual primary research can also be done and presented with exactly how
the production and promotion progressed through planning and all the way to the final testing
stage. This study was aimed to be designed for crisps manufacturers in the UK market, but much
of the content can be used for other similar products or can be adapted to other western foreign
markets.
Appendix
Figure 1.1
Consumer Usage – Crisps and Crisp-Style Snacks
Usage of crisps and crisp-style snacks, by type, October 2015
"Thinking about crisps and crisp-style snacks, which of the following, if any, have you eaten in
the last 3 months (excluding those eaten at a sandwich shop, pub or other foodservice outlets)?"
Base: 2,000 internet users aged 16+
Source:Lightspeed GMI/Mintel
Figure 1.2
Attitudes towards Crisps/Crisp-Style Snacks
Attitudes towards crisps/crisp-style snacks, October 2015
"To what extent do you agree or disagree with the following statements?"
Base: 1,835 internet users aged 16+ who have eaten crisps/crisp-style snacks
S~52614
92
78
48
45
39
21
20
17
14
8
8
Any crisps/crisp style snacks (Net)
Standard potato crisps (eg Walkers, McCoy's)
Other types of crisp-style snacks (eg Pringles,
Twiglets, Wotsits, Monster Munch, Hula Hoops)
Tortilla chips (eg Doritos)
Pan-fried/hand-cooked potato crisps (eg Kettle
Chips, Tyrrells)
Healthy/wholegrain crisps/snacks (eg SunBites)
Any fruit and veg crisps (Net)
Vegetable crisps (eg root vegetable crisps, cassava
crisps)
Popped potato snacks (eg Popchips)
Fruit crisps (eg Tyrrells apple crisps)
I have not eaten any crisps or crisp style snacks in
the last 3 months
%
HUBS (2015/16) eSubmission - Standard 11
Figure 1.3
Attributes Worth Paying More For, When Buying Crisps/Crisp-Style Snacks
Attributes worth paying more for, when buying crisps/crisp-style snacks, October 2015
"Thinking about buying crisps/crisp-style snacks which, if any, of the following, that may or may
not be currently available, would you consider paying more for?”
Base:1,697 internet users aged 16+ who have bought crisps/crisp-style snacks in the last three
months
Source:Lightspeed GMI/Mintel
Figure 1.4
Segment Performance – Crisps
Forecast of UK sales of crisps, by value, 2010-20
Source: based on IRI/Mintel
34
37
37
40
42
45
47
66
68
72
82
61
51
23
35
35
28
28
24
26
23
14
5
12
39
25
23
27
25
9
6
5
4
Smaller brands (eg Tyrells, Kettle Chips) support their
local economy
'Cracker crisps' (eg from Ritz, Jacob's) are healthier than
standard crisps
A sandwich isn't the same without crisps on the side
I would prefer to eat more nutritious snacks to crisps (eg
dried fruit)
I'd rather cut down on the amount of crisps I eat than
switch to a healthier version (eg low-fat)
I would be interested in superfood vegetable crisps (eg
kale crisps)
Own-brand crisps taste just as good as branded
I like to try new crisp/crisp style snack products
I would be interested in crisps made using healthier
cooking oils (eg olive oil, coconut oil etc)
It's important to have flavours that the whole family enjoys
Eating crisps is fine as an occasional treat
%
Any agree Neither agree nor disagree Any disagree
35
34
32
30
24
21
21
15
14
9
1
23
All-natural ingredients
Supports British farmers
Hand-cooked
High-quality ingredients (eg extra virgin olive oil, truffles)
Adventurous flavour
Re-sealable packaging (eg has ziplock)
Limited/special edition
Made by a brand with a long heritage
Made by a regional producer (eg Mackie's of Scotland)
Not mass-produced
Other
None of these
%
HUBS (2015/16) eSubmission - Standard 12
Figure 1.6
Figure 1.6
http://www.theguardian.com/lifeandstyle/2010/sep/01/crisps-british
Figure 1.7
http://www.smartinsights.com/marketing-planning/marketing-models/pricing-quality-model/
(£m)
1,340
Best case (£m)
1,693
Worst case (£m)
1,209
Mintel forecast (£m)
1,451
600
800
1,000
1,200
1,400
1,600
1,800
2,000
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Marketvalue(£m)
95%
Confidence intervals
90%
70%
50%Actual Forecast
Est.
0
HUBS (2015/16) eSubmission - Standard 13
Figure 1.8
Healthy crisp packet designs
Figure 1.9
https://www.tyrrellscrisps.co.uk/crisps/beetroot-parsnip-carrot-with-sea-salt
x
HUBS (2015/16) eSubmission - Standard 14
Figure 2.1
http://2012.effectivedesign.org.uk/pdf/2012/silver/4.1.19.pdf
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201307927 Independent study...

  • 1. HUBS (2015/16) eSubmission - Standard i BUSINESS SCHOOL COURSEWORK FEEDBACK SHEET STANDARD SUBMISSION Student No: 201307927 Date: 10/05/16 Module Code: 44242 Module Name: INDEPENDENT STUDY Word Count: 5446 Ass Title: INDEPENDENT STUDY Strengths exhibited in the assignment: Areas of weakness in the assignment: Additional comments: First Assessor’s Initials: Date: Indicative Mark: Second Assessor’s Initials: Date: (Subject to Module Board Agreement) (Before any penalty is applied) The declaration on the next page must be read and understood. Attaching this cover sheet to work submitted electronically is taken to be the equivalent of submitting a signed copy of the form. Please read the declaration carefully and query with your Programme or Module Leader if you do not understand its meaning.
  • 2. HUBS (2015/16) eSubmission - Standard ii Plagiarism Declaration I declare that the work that I am submitting for assessment contains no section copied in whole or in part from any other source unless it is explicitly identified by means of quotation marks. I declare that I have also acknowledged such quotations by providing detailed references in an approved format. I understand that either or both unidentified and unreferenced copying constitute plagiarism, which is one of a number of very serious offences under the University’s Code of Practice on the Use of Unfair Means - see F8 - Regulations on the use of Unfair Means, in Section F, of the University’s Quality Handbook; http://www2.hull.ac.uk/administration/cdte/quality_standards/quality_handbook/section_f.aspx I declare that the work I am submitting is entirely my own. Additionally, I confirm that I have been advised of the “Ethical Procedures for Research” of the Business School (information on the ethical procedures is available in your Programme Handbook) and that I have followed these guidelines and the code of conduct for research ethics in the empirical work of this assignment (if any). NB. Start your assignment ON THE NEXT PAGE.
  • 3. HUBS (2015/16) eSubmission - Standard 1 How to conduct a marketing campaign when bringing a healthy crisp product to the UK market Contents  Introduction 3  Aims and objectives 4  The product 4  The Pricing strategy 7  How to promote the product 8  Conclusions and recommendations 11  Appendix 12  Bibliography 16 Introduction In the twentieth century potato chip sales have continued their steady rise in the UK, but since 2013 potato chip sales have hit a plateau, see figure 1.4. This is largely because of rising health concerns and attitudes to obesity in the western world including diet-related illnesses, cardiovascular disease, diabetes and several types of cancer, Thunstrom & Nordstrom (2012). These have very much become a focus to many people’s lives and particular unhealthy foods have gained a negative reputation because of this. Many public and private institutions have made efforts to promote a healthy lifestyle through the use of information campaigns, food labelling and tax reforms. Crisps often contain high rates of fat and calories and when eaten regularly can lead to weight gain: with a third of British children eating crisps daily, 43% of adults also doing so, and nearly a fifth of children having two bags or more, obesity has become a real issue and tie with crisps, a New England Journal of Medicine study found that the daily consumption of an ounce of crisps can lead to weight gain of 1.69 pounds over four years, Macleod (2013), Ramsden (2013), Guardian.co.uk (2010). Crisps also contain a high level of salt; this can lead to a high blood pressure which is found to lead to an increased chance of heart attacks, heart failure and sudden cardiac death, Mayoclinic.org (2014), Sugarman (2009), Colia (n/a). High cholesterol can be a problem due to the high amounts of fat, saturated fat and transfats; this is because of the oils used when cooking crisps and the cooking process itself. Having high cholesterol can lead to coronary heart disease, strokes, peripheral arterial disease, heart attacks and narrowing of the arteries, see figure 1.6 Nhs.uk (2015), Colia (N/A). Other health issues such as type 2 diabetes, certain cancers and dental hygiene problems are being linked to fatty foods like crisps too. Over time, salt, sugar and fat contents in crisps have dropped, but because they are still fried in fat, calories till remain high, Guardian.co.uk (2010). Because of these rising issues and awareness from adults for their health and their children’s many new and existing players in the market have created healthier versions of crisps, North (2015) that reduce or eradicate ingredients such as salt and fats, use different oils for cooking and different cooking methods and have increased quantities of fibre with the use of more rice, wholegrain and wheat ingredients. Examples of these include Walkers Sunbites, which have had much recent success, also Food Should Taste Good, Tyrell’s and Kettle vegetable crisps, and finally fruit crisps. The sub-market is still fairly young, but many products have good success for example since its marketing campaign Sunbites has had annual sales increases of up to 26%, Mintel (2016), this project aims to design a marketing campaign for a new healthy crisp that addresses many modern health concerns and provides nutrition too. Much consumer research has been done into finding out if people are willing to try and move to purchasing healthier crisps,
  • 4. HUBS (2015/16) eSubmission - Standard 2 and has proved positive regarding the healthier crisp market for example a Mintel (2014) report showed that almost a third of consumers would move to an apple or pear based crisp, Maxwell (2015). Reports suggest that much of the UK potato crisp growth has come from healthier products; this is also evident through the growing players in the market. Aims and objectives The main aim of this paper is to produce a strategy for a marketing campaign for bringing a new healthy crisp product to market. It will be aimed at the ‘Potato Chips Group UK’ and aims to provide a guideline in how to conduct a marketing campaign for any of the Crisp companies that are part of this group. Whilst healthy crisps do already exist, this paper will look at what successes there has been, the different types of healthy crisp and create a whole design that covers most elements of a marketing campaign. Crisps will be focused on to a large extent but much of the design and research is relevant to popcorn, nut s and other similar savoury products. This design aims to be a guideline and be relevant to all different manufacturers in the market and so be changed and fitted accordingly to whichever particular company decides to use it. The product designed aims to be one that counters to a certain extent the issues raised in the introduction as well as provide health benefits too. The strategy aims to include the pre-launch and introductory stage of the product life cycle. The design will mainly cover how to design the product, introductory pricing strategies and how to promote it, but will also touch on issues such as what market research needs to be done. To produce the strategy effectively, many different sources will be used: these will include healthy eating, market and product reports, literary texts and journal and web articles as well as relevant news stories and case studies. The use of marketing theory combined with up to date reports highlighting successes in the market will help to provide as accurate a design as possible. Market information and case studies will be predominantly from UK sources as to keep it as relevant as possible for the Potato Chips Group UK. The Product This section will look to provide a guideline on how best to produce the desired crisp that combats to a certain extent the health issues and provide health benefits too. The ingredients, the process of cooking and the packaging will all be designed to meet the marketing objectives, and give guidelines on how to design a bag that shows off the products benefits, healthy, tasty and being a premium product. Baker (1999) explains the stages of designing a product as:  Strategy  Idea generation  Screening  Concept development  Business analysis  Product development  Test marketing  Commercialization A well performed design process will help the crisps final aesthetic and ergonomic properties, thus increasing value and perceived value, Brassington & Pettitt (2013). At the rate the market is
  • 5. HUBS (2015/16) eSubmission - Standard 3 growing it is important to be innovative with design and contents as to stand out over the current and successful market players and being more than just a ‘healthy crisp’. As discussed in the introduction there are many health issues with most brands of crisp. The things that need to be addressed include reducing and removing the amount of:  Salt  Fat, saturated fat, unsaturated fat, polyunsaturated fat and transfats  Calories  Artificial flavours, colours and preservatives  MSG The product can look to increase:  Levels of wholegrain  Fruit/vegetable/rice quantities Other things that can be considered are:  Nationality of potatoes  Which cooking oil is used  Cooking method  Vegetarian/vegan/ gluten free/ kosher/ halal  Organic It won’ be possible to meet all of this criteria but creating a product that satisfies as many as possible will help with the overall value of the product. Crisps are most commonly made from potatoes, but recently there has been large growth in the use of other core ingredients such as vegetables for example Kale, Cassava, pea, and bean, fruit crisps including apple and pear, as well as the use of multigrain or whole grains and rice: these typically are low in fat and calories as well as increase the fibre content healthyeconomist.com (2011), North (2015), also see figure 1.1. Successes of these kinds of products include Walkers Sunbites, Tyrell’s vegetable crisp range, Scrubby’s, Walkers Pops and Food Should Taste So Good multigrain tortillas, PepsiCo (2011), UK.Iherb (2016), Mintel (2016), North (2015), Steele & Hermiston (2015). The nationality of the core ingredient is something that companies such as Walkers and Tyrell’s have given attention to; though not one of the main thoughts of the customer when purchasing a product, locality of ingredients, if promoted effectively, can affect a customers buying decision to a certain extent. When making this decision of where to buy the core ingredient from, it’s important to know the costs of each, but overall to promote this product British or Irish produce should be used as to further solidify the product as a premium one. In conclusion the core ingredient very much depends on each individual company’s marketing objectives, how relevant the product is to the brand and what technology is currently owned or readily available. Another main factor to address is the way the crisp is cooked. Crisps that are baked rather than fried will reduce saturated fat contents by around 70% as claimed by Walker’s and Tyrell’s. Popped crisps are also a viable option of cooking; using micro pellets of potato and rice seasoned with oil and cooked under a high pressure and temperature. Brands from companies like Walkers and Kellogg’s using this method have seen sales skyrocket with support from promotional campaigns advertising the fact that they have 50% less fat than ordinary potato crisps, Bamford (2014), Walkers.co.uk (2016). I would recommend the baking method because even though alternatives have had similar success, keeping the crisp itself familiar to the customer allows to appeal to a larger target audience, but once again this choice depends on marketing objectives and how niche you want the product to be.
  • 6. HUBS (2015/16) eSubmission - Standard 4 The use of oil for seasoning will help to season the product, but in production you must choose the best oil that optimises taste while keeping down fat and saturated fat levels, all while still keeping enough to make sure there is little reaction with oxygen during the cooking process, Leech (2015). Wallkers.co.uk claims their use of rapeseed and sunseed blend has meant a 75% lower rate of saturated fat, but Leech (2015) explain how industrial vegetable oils lead to high amounts of polyunsaturated fatty acids. Leech (2015) and Wich (2015) recommend coconut, olive or avocado oils, as these keep polyunsaturated lower and reduce additives, but are higher in saturated fats. There is much less competition with that use these oils and only from small players in the market. Once again the marketing objectives may well play a part in this decision but if possible it is worth experiment and conducting thorough primary research to find the optimal seasoning. As discussed in the introduction, high levels of salt consumed over a sustained period of time can lead to a high blood pressure. With crisps often containing a high amount for example Walkers ready salted having 0.46g of salt per pack which is 8% of an adult’s daily intake. Walkers Sunbites have a much lower rate of 0.17g, which is only 3% of an adults recommended intake. The trade-off often with salt is that more salt improves taste (as it is flavouring) up until a certain point and being is increasingly unhealthy, also improving the health benefits and taste will increase the willingness to pay, Thunstrom & Nordstrom (2012). Typically consumers rank taste over nutritional content and is the most important factor when making decision regarding food, Lennernas et al. (1997) & Glanz et al (1998), PepsiCo (2016). The salt in crisps can simply be reduced by lowering the salt usage, or changing the type of salt, for example sea salt (with lower sodium levels) during the salting stage of production. The salt content must be low enough to attract the target market and be promotable but the taste must be significantly good, this can be best discovered through primary market research, for a 25-40g pack levels of 0.15g and 0.3g is an acceptable level. A wide range of flavours keeps the target audience interested and loyal as well as targets a larger potential customer size; further additions to the product mix width will help this throughout the product life cycle, Brassington & Pettitt (2013), Bradley (2003). As discussed before, there is an importance in this market of customer retention and attraction, offering a wide array of flavours can help to attract and keep customers. While this is important during the launch, Learnmarketing.net (n/a) explains how it makes it harder to manage the brand and makes it harder to specialise. In the cooking process, consideration must be taken when using flavourings, not using artificial flavourings will help the brand image and using the right flavourings can keep the saturated fat content down, Goodtoknow (2015). For the introductory stage of the product life cycle I thus propose the launch product to contain between 3 and 5 flavours, with a ready salted or equivalent flavour as a must, as it is consistently on of the most popular and recognisable flavour of crisp, also cheese and onion and salt and vinegar or equivalents are often as popular and must also be strongly considered, Jordan (2014). The design of the product is essential to adding perceived value and communicating effectively the brand and the products strengths, and with healthy labelling in demand Thunstrom & Nordstrom (2012), this is especially important. The packet itself must match the colour schemes and be consistent with all promotions for the product. The colours and design must promote the health benefits of the product and the crisp itself must look different from the standard yellow fried, oily, fatty potato chip, for colour scheme see promotion, see also figure 1.8 for examples. For whatever health benefits are found after producing the crisp, can be presented on the packet on the front and/or back, though you must be careful as not to overwhelm the customer. Many products in the market often just stick to their most prevalent healthy grabber, it must also be clear by the design of the packaging that this is a premium product and so reflects the product inside and the price you are paying for it; this can be done through the use of more artistic fonts,
  • 7. HUBS (2015/16) eSubmission - Standard 5 more innovative packaging materials, effective imagery and textures, catchy and informative tagline again see figure 1.8: primary research can be conducted to provide opinions about the packaging. Henley (2010) explains how sharing bags have grown in recent years and now account for 29% of the market. I don’t believe this is a viable option though because thegrocer.co.uk (2014) explains how many who use share bags eat them by themselves, furthermore the levels of fat, calories etc. will rise as the packaging size increases thus contradicting and making it more difficult to communicate any health improvements. Thus I propose sticking to the normal 25g to 40g standard size; this will also help as customers are familiar with the concept. The product should be sold in single and multipack versions. Single packs will improve new customer rates through ease of purchase and impulse buying, as well as being seen as more of a one-off treat, while the multipack will increase customer retention with the intention of customers sticking with the brand, for example buying the product every week as part of a weekly shop. Tyrell’s claims they have had success with their vegetable crisps, without advertising and has come through package design and media press alone, North (2015), see figure 1.9 for packet, as well as Sunbites gaining success with packaging redesign that had time to take effect before the promotional campaign started, 2012.effectivedesign.org.uk (2011). Because of the quality and pricing strategy adopted this product will sit central but more towards the premium product end of the Kotlers Price/Quality matrix see figure 1.7. In conclusion for production I propose:  Thorough primary research to find the right balance between health benefits and taste  Thorough primary research to find the relationship between willingness to pay and the increase in taste and health benefit  Addressing of the marketing objectives  Packaging that communicates health benefits and the brand The Pricing strategy Choosing the correct pricing strategy and the exact price depends on a lot of factors such as the competition, the costs involved, marketing objectives, corporate policy and the laws and regulations, Bradley (2003), Armstrong & Kottler (2000). This section aims to choose the most appropriate strategy during the introductory phase of the Product life cycle and explain why it is appropriate for a healthy premium crisp. Bradley (2003) explains the three approaches to price are the cost, the customer and the competition; in the introductory stage competitor oriented pricing stages are the most important though cost and customer oriented issues must still be considered, Blythe (2005). Many of the existing products in the healthy crisp market have a low new customer rate, but a very high retained customer rate for example Sunbites, PepsiCo (2011). This suggests that not enough, or the correct pricing and promotional strategies are being employed to attract customers, yet consumers feel the taste is satisfactory and customers believe in the product. Because of this a penetrative pricing strategy would seem very viable as to undercut the competition and so attract as many customers as possible to try the product before the competition has time to react. Unfortunately for this premium product specifically there are many issues with penetration pricing. Brassington & Pettitt (2013) explain that a side effect of low-price promotions can see competitors follow and match the price, Blythe (2005) explains how if competitors react quickly enough there could be the possibility of a price war which favours no one but the customer. The more important issue is that “The price reflects value”, Bradley (2003), Baker and Bass (2003); this rule often runs true and with the proposed product
  • 8. HUBS (2015/16) eSubmission - Standard 6 being a premium one, it is important to retain that image through its price. A multiplying factor of this is that consumers get used to paying a lower price from the promotion and shift focus away from quality and towards the price, Cooper (2011), Cuthbertson (2006). Thus in conclusion, I propose a price skimming strategy. While attracting new customers has been an issue for similar products and needs to be addressed, I believe this will be done through effective promotional techniques and communication of the products quality and ingredients/health benefits. Having an original high price will mean customers won’t be shocked as the price will not change much as the product moves through the product life cycle. Because of the issue of things like price wars, Blythe (2005) concludes it is often safer to compete on things like quality. It is against EU law for the manufacturer to force retailers to price at a certain rate but recommended retail prices can be given in which many retailers selling crisps will be happy to oblige. This pricing strategy allows for discounts to be easily made in the future too when appropriate. Each flavour must remain the same price as to avoid confusion and keep consistency. With crisps price elasticity of demand being fairly high costs must not be too high as it will lower demand significantly because of the sheer volume of competition and customer resistance to trying new healthy products, Akbay & Jones (2006). How to promote the product As discussed in price the way to attract customers in this campaign will be through promotion. This section will aim to understand who the target market are, create suggestions for how best to promote the product to the target market and what avenues will be used to do this. The section will comment on relevant theory and case studies from within and outside the market and attempt to cater to most promotional budgets. As discussed before attracting new customers has been difficult in the market and so promotion alongside effective packaging will be a large driver for success. Armstrong and Kottler (2000) explain the elements of the promotional mix; these include advertising, personal selling, sales promotion and public relations. I will aim to provide suggestions on what are the best tools for each and most relevant to the market and a vague guideline what each tool should produce. Whether to use a ‘Push’ or ‘Pull’ promotional mix strategy will very much depend on the size of the manufacturer, a higher budget for the promotional campaign and the strong relationship with retailers and wholesalers would suggest a pull strategy, yet a push for the opposite situation. A mix of both will be used but it is important to find out whether the marketing objective is to focus on consumers or retailers and wholesalers to get the product sold, Armstrong and Kottler (2000), Magloff (n/a). Knowing the target market is essential to choosing and designing the media you want to use for the promotional campaign, Marketing-made-simple.com (n/a). The target market will differ slightly depending on exactly how the product is designed and how much it is on the healthy and/or premium side. Figure 1.1 shows that 21% eat wholegrain snacks/crisps, 20% eat vegetable crisps and 8% eat fruit crisps, Mintel (2016): it is important to understand exactly who these consumers are and so create a promotional strategy that is tailored to them. The report also shows many demographics have little difference including gender consumption and with different areas of the UK. The most notable demographics I found were that under 35’s are much bigger consumers than those above 35. Also those in full-time employment have a much higher tendency to pay for the more premium and healthier snacks. While I suggest targeting these demographics, there are still significant quantities of over 35’s and non-full-time employed potential consumers that must not be ignored. Furthermore while only around 20% of consumers eat healthier crisps, only 8% of the UK citizens surveyed didn’t eat crisps and so while those interested in healthy crisps need to be targeted there is still a potential to attract a wide array of
  • 9. HUBS (2015/16) eSubmission - Standard 7 consumers. In conclusion I believe a product more on the taste side than the healthy one is more mass market and vice versa. Secondly the Mintel reports were done on consumers, not customers and typically the most popular shopper is the mother in a family; this target market should be considered heavily but must not be too explicit as there is still a large enough potential male customers that who do the shopping. Targeting parents will help to increase the number of under 18 year old consumers. Unhealthy products cannot legally be promoted to children, Mangelburg (1990), and with health concerns being lower down in their priorities for purchasing decisions, targeting parents can have the whole family purchasing the product. TV adverts ideally should be presented later in the day so that there is a larger reach to parents and the employed. The other potential customers that should be marketed are those already buying healthier snacks, see above, and also healthy products. Creating a superior or innovative product and if promoted effectively can attract this market. Armstrong & Kottler (2000) explain the importance of selecting media depending on your target market. When selecting the media, you want to maximize reach, frequency, impact and the opportunity to see (OTS), Brassington & Pettitt (2013). For a more mass market product I believe TV and cinema advertising can be useful: while the reach is ever decreasing, it is also becoming cheaper and remains an effective way to appeal to the masses, Brassington & Pettitt (2013), Armstrong & Kottler (2000), it is also a great way to present imagery that addresses the message and provide information too. But not all campaigns will have such a budget or may be more niche market, in this situation campaigns need to appeal to the target market: to interest those in the healthy eating demographic previously mentioned, relevant specific magazines or TV channels can be utilized that have much higher percentage interaction of reach and a higher OTS, Armstrong & Kottler (2000). These could include ‘GoodFood’ or ‘Food Network UK’. Magazines are available online and in paper copy, promotion can be positioned here. Brassington & Pettitt (2013) explain how the OTS in a magazine is seen on average around 3 times. Examples of these include: thegreatbritshfoodmagazine.com, healthy-magazin.co.uk or healthyfood.co.uk just to name a few of a large quantity available on the internet. Subscription magazines include BBC Good Food, Healthy food, Veggie, Olive, Delicious, again just to name a few, WHSmith (2016). An innovative product needs to be coupled with promotion that supports it, Bradley (2003). To create not just a high quality advert, one must understand the advertising objectives and the exact message and information you want to present. I believe for this particular product, the focus of the message should be on:  Health benefits  Taste Thunstrom & Nordstrom (2012) explain how these are some of the most important purchasing decisions as well as matching the products main selling points. The message should also include:  Being a premium product  The ingredients  What the Unique Selling Point is The advert needs to be consistent with the packaging, themes and any other kind of promotion as to keep the product and the brand recognisable when it customers come to actual purchase. Walkers Sunbites TV advert, Campaignlive.co.uk (2014), very much focuses on the product being a great tasting product in a very bland and ‘Cardboard tasting’ healthy snacks market, with a final mention of the product being multigrain. The theme of the advert was very much about everyday life and less so about the ingredients and health benefits, as it is very much the consumer attitude that any snack containing whole/multi grain, wholemeal etc. is healthy, Wholegrainscouncil.org (2013) and so the taste took centre stage. Sunbites have had large
  • 10. HUBS (2015/16) eSubmission - Standard 8 success since their marketing campaign in 2011 and have seen sales climb each year and have now released a wider product range, PepsiCo (2011), Pepsi.co.uk (2016), 2012.effectivedesign.org.uk (2011). This focus on taste also coincides with the Sunbites change in packaging from one less about the health benefits and more about the taste found with their primary research, see figure 2.1. From this I believe the balance between emphasizing taste and healthy/ ingredient contents lies simply with how good the product tastes or is healthy; Sunbites are more on the tasty side than vegetable crisps but aren’t as healthy, the target market differs depending on which has priority with a tastier product being more mass market and vice versa. ‘Food Should Taste Good’s product is very much an even mix of taste and health an accordingly has split their focus evenly. Sales promotions can be very advantageous to promote a product especially during the introductory stage of the product life cycle. Examples can include competitions, point of purchase displays, demonstrations and loyalty incentives. Walkers have had numerous competitions over the years whether it is a simple ‘enter with a chance to win’ or voting on a particular flavour to be chosen as a permanent flavour. Walker’s ‘Do us a flavour’ increased the rate of people seeing a Walker’s ad from 17% to 27%, word of mouth exposure from 6% to 10%, and got over a million people involved, with 4.3 million visits to walkers.co.uk, marketingsociety.com (2011), digitaltraingacademy.com (n/a). Stalls or free samples stalls may not be the best way to gain a large reach but can be useful for more niche market products and are very good at providing more than just imagery, if the product has sufficient quality, it can get consumers involved, while also increasing word of mouth; with the rise of social media this can be further enhanced, Small Business UK (2014). Finding an appropriate food festival such as Challengers Food festival or Autumn Home and Food fair, will help to delve deeper into the potential target market of those looking for healthy products and innovative foods, whereas free sample stalls in town centres can help to reach a wider range of demographics if intended. Using social media is an effective way to further reach the target market through many different channels and with many different uses of media, it is also a useful way to interact with consumers, all at a very low price, Weiczner (2015), Phillips (2015). Enhanceing public relations can help to get the product and the brand talked about and increases its public and corporate image, Armstrong & Kottler (2000). This is especially important when marketing a premium product and will help to promote its positive health benefits. Transparency can be improved by engaging with stakeholders, working with NGO’s, think tanks and others in the food industry, PepsiCo (2011), as well as getting involved with schemes such as ‘Change4Life’. Press releases and PR events can also help. Working with the media for example when Lamborghini gave journalists the opportunity to test their new vehicle, Armstrng & Kottler (2000) or Food Should Taste Good crisps had their product new range promoted on ‘Ellen’, a popular US chat show, https://www.youtube.com/watch?v=oBFbrwoYPm8. Other example can include raising money for charity through collections or innovative schemes that often relate to the product or brands message, Leigh (2016), McFarlin (n/a). Performing these kinds of schemes can often be a more effective way than straight up advertising if the budget won’t stretch too far, Armstrong & Kottler (2000). In conclusion I believe the most imperative factor to consider is the promotional budget, as this will decide exactly what forms of promotion are possible. The other things to consider and perform well must include:  Is the product niche or mass market  Who is the exact target market  Be innovative with promotion  Use primary research and early sales figures to understand which promotion and branding is working best
  • 11. HUBS (2015/16) eSubmission - Standard 9  Communicate the message and information Conclusions and Recommendations The success of the campaign will depend on effective implementation of all parts of the strategy but the marketing campaigns most important issues to tackle are:  Always understand what budget and timeframe is available for each stage  Thorough and frequent primary research about the crisp, the packaging, adverts and the brand  Spending time deciding whether to create a mass or niche product so as to implement promotional strategy appropriately  Understand your target market  Spending time planning each stage and sticking to the marketing objectives  Create an innovative promotional scheme that appeals to the target market  Create an effective message that supports the product and the brand that is consistent throughout packaging and promotion  A skimming strategy that supports a premium product  Create a product that is healthy but must also be tasty, with multiple flavours, while adding perceived value too  Make sure the product stands out in the market with a modern and interesting unique selling point that is supported by promotion  Create a product that meets legal standards, for example the FSA salt targets  Choose and find the best retailers and wholesalers  Make sure the product is completely finished before the pricing and promotional stage It is also important to constantly take note of  Where the product is in the product life cycle  Levels of sales to determine what is a success  Market changes  What the competition is executing  Customer attitudes  New technologies There has been much growth in this segment of the crisp market; there have been many new entrants from new businesses and larger manufacturers integrating and bringing their own new products and so it is becoming increasingly important to perform all of the issues above with time, care and with whatever budget is available. It is further important to try to maintain sales growth as many existing players such as ‘Snack-A-Jack’ have been hit very hard by rising competition, North (2015), bringing out more flavours, adding more promotion and understanding the market can help to do this. After Sunbites’ success they have expanded into crackers with dip and pitta bakes, North (2015), walker.co.uk (2016). It is finally important to note that if the campaign fails first time it is important to learn and if possible have a re-launch: Walkers Sunbites did this and where much more successful after a second campaign seeing sales rise 26% in just the first four months, PepsiCo (2011). This study aimed to provide a guideline for a marketing campaign, this study can be heavily supported with each section researched in more detail: there is much more that can be done in the creation of the product, including a list of ingredients, how exactly to produce the product and how to test the product. Extremely little research was done about where to sell the product too. The promotional guideline depends very much on the product; if a certain product is created, a specific promotional campaign can be created that matches the product and that uses the
  • 12. HUBS (2015/16) eSubmission - Standard 10 suggestions given in this study while designing in detail each stage and type of promotion that takes place. Results of actual primary research can also be done and presented with exactly how the production and promotion progressed through planning and all the way to the final testing stage. This study was aimed to be designed for crisps manufacturers in the UK market, but much of the content can be used for other similar products or can be adapted to other western foreign markets. Appendix Figure 1.1 Consumer Usage – Crisps and Crisp-Style Snacks Usage of crisps and crisp-style snacks, by type, October 2015 "Thinking about crisps and crisp-style snacks, which of the following, if any, have you eaten in the last 3 months (excluding those eaten at a sandwich shop, pub or other foodservice outlets)?" Base: 2,000 internet users aged 16+ Source:Lightspeed GMI/Mintel Figure 1.2 Attitudes towards Crisps/Crisp-Style Snacks Attitudes towards crisps/crisp-style snacks, October 2015 "To what extent do you agree or disagree with the following statements?" Base: 1,835 internet users aged 16+ who have eaten crisps/crisp-style snacks S~52614 92 78 48 45 39 21 20 17 14 8 8 Any crisps/crisp style snacks (Net) Standard potato crisps (eg Walkers, McCoy's) Other types of crisp-style snacks (eg Pringles, Twiglets, Wotsits, Monster Munch, Hula Hoops) Tortilla chips (eg Doritos) Pan-fried/hand-cooked potato crisps (eg Kettle Chips, Tyrrells) Healthy/wholegrain crisps/snacks (eg SunBites) Any fruit and veg crisps (Net) Vegetable crisps (eg root vegetable crisps, cassava crisps) Popped potato snacks (eg Popchips) Fruit crisps (eg Tyrrells apple crisps) I have not eaten any crisps or crisp style snacks in the last 3 months %
  • 13. HUBS (2015/16) eSubmission - Standard 11 Figure 1.3 Attributes Worth Paying More For, When Buying Crisps/Crisp-Style Snacks Attributes worth paying more for, when buying crisps/crisp-style snacks, October 2015 "Thinking about buying crisps/crisp-style snacks which, if any, of the following, that may or may not be currently available, would you consider paying more for?” Base:1,697 internet users aged 16+ who have bought crisps/crisp-style snacks in the last three months Source:Lightspeed GMI/Mintel Figure 1.4 Segment Performance – Crisps Forecast of UK sales of crisps, by value, 2010-20 Source: based on IRI/Mintel 34 37 37 40 42 45 47 66 68 72 82 61 51 23 35 35 28 28 24 26 23 14 5 12 39 25 23 27 25 9 6 5 4 Smaller brands (eg Tyrells, Kettle Chips) support their local economy 'Cracker crisps' (eg from Ritz, Jacob's) are healthier than standard crisps A sandwich isn't the same without crisps on the side I would prefer to eat more nutritious snacks to crisps (eg dried fruit) I'd rather cut down on the amount of crisps I eat than switch to a healthier version (eg low-fat) I would be interested in superfood vegetable crisps (eg kale crisps) Own-brand crisps taste just as good as branded I like to try new crisp/crisp style snack products I would be interested in crisps made using healthier cooking oils (eg olive oil, coconut oil etc) It's important to have flavours that the whole family enjoys Eating crisps is fine as an occasional treat % Any agree Neither agree nor disagree Any disagree 35 34 32 30 24 21 21 15 14 9 1 23 All-natural ingredients Supports British farmers Hand-cooked High-quality ingredients (eg extra virgin olive oil, truffles) Adventurous flavour Re-sealable packaging (eg has ziplock) Limited/special edition Made by a brand with a long heritage Made by a regional producer (eg Mackie's of Scotland) Not mass-produced Other None of these %
  • 14. HUBS (2015/16) eSubmission - Standard 12 Figure 1.6 Figure 1.6 http://www.theguardian.com/lifeandstyle/2010/sep/01/crisps-british Figure 1.7 http://www.smartinsights.com/marketing-planning/marketing-models/pricing-quality-model/ (£m) 1,340 Best case (£m) 1,693 Worst case (£m) 1,209 Mintel forecast (£m) 1,451 600 800 1,000 1,200 1,400 1,600 1,800 2,000 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Marketvalue(£m) 95% Confidence intervals 90% 70% 50%Actual Forecast Est. 0
  • 15. HUBS (2015/16) eSubmission - Standard 13 Figure 1.8 Healthy crisp packet designs Figure 1.9 https://www.tyrrellscrisps.co.uk/crisps/beetroot-parsnip-carrot-with-sea-salt x
  • 16. HUBS (2015/16) eSubmission - Standard 14 Figure 2.1 http://2012.effectivedesign.org.uk/pdf/2012/silver/4.1.19.pdf Bibliography 2012.effectivedesign.org.uk. (2011). Sunbites executive summary. [online] Available at: http://2012.effectivedesign.org.uk/pdf/2012/silver/4.1.19.pdf [Accessed 6 May 2016]. A Live Commercial for Food Should Taste Good. (2014). [video] the ellen degeneres show. Akbay, C. and Jones, E. (2006). Demand elasticities and price-cost margin ratios for grocery products in different socioeconomic groups. Department of Agricultural Economics, University of Sutcu Imam, Kahramanmaras, Turkey. Armstrong, G. and Kotler, P. (2000). Marketing. Upper Saddle River, NJ: Prentice Hall. Baker, M. (1999). The marketing book. 4th ed. Oxford: Butterworth-Heinemann. Baker, S. and Bass, M. (2003). New consumer marketing. Chichester, West Sussex, England: John Wiley & Sons.
  • 17. HUBS (2015/16) eSubmission - Standard 15 Bamford, (2014). Walkers launches range of air-popped snacks. [online] TheGrocer.co.uk. Available at: http://www.thegrocer.co.uk/walkers-launches- range-of-air-popped-snacks/353805.article Blythe, J. (2005). Essentials of marketing. 3rd ed. New York: FT/Prentice Hall. Bradley, F. (2003). Strategic marketing. Chicester, West Sussex, England: J. Wiley. Brassington, F. and Pettitt, S. (2013). Essentials of marketing. 3rd ed. Harlow, England: Prentice Hall Financial Times, an imprint of Pearson Education. Campaignlive.co.uk. (2014). Walkers Sunbites "cardboard Jane" by Abbott Mead Vickers BBDO. [online] Available at: http://www.campaignlive.co.uk/article/walkers-sunbites-cardboard-jane-abbott- mead-vickers-bbdo/1230498 Chintapalli, P. and Hazra, J. (2015). Pricing and inventory management during new product introduction when shortage creates hype. Naval Research Logistics (NRL), 62(4), pp.304-320. Colia, B. (n.d.). What Are the Negative Effects of Chips?. http://healthyeating.sfgate.com/negative-effects-chips-2980.html. Digitaltrainingacademy.com. (n.d.). Digital marketing case study - Food case study: Walkers ‘Do Us a Flavour’ gets web buzzing about crisps - Digital Training Academy. [online] Available at: http://www.digitaltrainingacademy.com/casestudies/2015/02/food_case_study_w alkers_do_us_a_flavour_gets_web_buzzing_about_crisps.php goodtoknow.co.uk. (2015). Mini Cheddars: 5/10 - Crisps: The best and worst revealed. [online] Available at: http://www.goodtoknow.co.uk/wellbeing/galleries/34210/crisps-best-and- worst/10 Hanlon, A. (2013). The Pricing - Quality Model - Smart Insights Digital Marketing Advice. [online] Smart Insights. Available at: http://www.smartinsights.com/marketing-planning/marketing-models/pricing- quality-model/ Henley, J. (2010). Crisps: a very British habit. [online] the Guardian. Available at: http://www.theguardian.com/lifeandstyle/2010/sep/01/crisps-british [Accessed 24 Apr. 2016].
  • 18. HUBS (2015/16) eSubmission - Standard 16 Hermiston, S. and Steele, L. (2015). Veggie or potato chips: Which are healthier?. [online] British Columbia. Available at: http://bc.ctvnews.ca/veggie-or-potato- chips-which-are-healthier-1.2273342 Jordan, W. (2014). YouGov | Generation Ready Salted?. [online] YouGov: What the world thinks. Available at: https://yougov.co.uk/news/2014/08/30/generation- ready-salted/ Learnmarketing.net. (n.d.). Product Mix and Objectives: Product Lines, Product Width and Product Stretching. [online] Available at: http://www.learnmarketing.net/productobjectives.htm Leech, j. (2015). What is The Healthiest Oil For Deep Frying? The Crispy Truth. [online] Authority Nutrition. Available at: https://authoritynutrition.com/healthiest-oil-for-deep-frying/ Leigh, R. (2016). Top 10 PR and marketing stunts and campaigns of April 2016 | PR Examples. [online] Prexamples.com. Available at: http://prexamples.com/2016/05/top-10-pr-and-marketing-stunts-and-campaigns- of-april-2016/ MacLeod, H. (2013). YouGov | 1/3 of children eat crisps daily. [online] YouGov: What the world thinks. Available at: https://yougov.co.uk/news/2013/03/27/13- children-eat-crisps-daily/ Magloff, L. (n.d.). Push & Pull Promotional Strategy. [online] Smallbusiness.chron.com. Available at: http://smallbusiness.chron.com/push-pull- promotional-strategy-10972.html Mangleburg, T. (1990). Children's Influence in Purchase Decisions: a Review and Critique by Tamara F. Mangleburg. [online] Acrwebsite.org. Available at: http://www.acrwebsite.org/volumes/7108/volumes/v17/NA-17 Marketing-made-simple.com. (n.d.). Marketing strategy. [online] Available at: http://marketing-made-simple.com/articles/promotional-strategy.htm marketingsociety.com. (2011). 2011: Walkers, Creating Loyal Relationships - Case Study -. [online] Available at: https://www.marketingsociety.com/the- library/2011-walkers-creating-loyal-relationships-case-study Mayoclinic.org. (2014). High blood pressure dangers: Hypertension's effects on the body - Mayo Clinic. [online] Available at: http://www.mayoclinic.org/diseases- conditions/high-blood-pressure/in-depth/high-blood-pressure/art-20045868
  • 19. HUBS (2015/16) eSubmission - Standard 17 McFarlin, K. (n.d.). Examples of Public Relations Campaigns. [online] Smallbusiness.chron.com. Available at: http://smallbusiness.chron.com/examples- public-relations-campaigns-10110.html Nhs.uk. (2015). High cholesterol - NHS Choices. [online] Available at: http://www.nhs.uk/Conditions/Cholesterol/Pages/Introduction.aspx North, A. (2015). Healthier crisps sales boom. [online] Thegrocer.co.uk. Available at: http://www.thegrocer.co.uk/reports/digital-features/snack-report-2015/healthier- crisps-sales-boom/512792.article PepsiCo. (2011). [online] Available at: http://www.pepsico.co.uk/asset/download/1042.pdf [Accessed 29 Apr. 2016]. Pepsico.co.uk. (2016). New Walkers Sunbites packaging highlights great taste | PepsiCo UK. [online] Available at: http://www.pepsico.co.uk/our-company/trade- information/trade-media-centre/trade-news/walkers-sunbites-packaging-redesign Phillips, J. (2015). Best Practices for Governing Social Media Content. international journal of management, 49(5). Price, A. (2016). Crisps,savoury snacks and nuts, UK january 2016. [online] Mintel. Available at: http://file:///C:/Users/George%20Thompson/Downloads/Crisps,%20Savoury%20 Snacks%20and%20Nuts%20-%20UK%20-%20January%202016%20- %20Infographic%20Overview.pdf Ramsden, J. (2013). The crisps are all right | James Ramsden. [online] the Guardian. Available at: http://www.theguardian.com/commentisfree/2013/mar/28/crisps- pack-a-day Retail Week. (2011). Can suppliers dictate retail prices?. [online] Available at: http://www.retail-week.com/analysis/retail-surgery/can-suppliers-dictate-retail- prices/5028502.fullarticle Small Business UK. (2014). Seven benefits of giving out free samples. [online] Available at: http://www.smallbusiness.co.uk/running-a-business/finding-and- selling-to-customers/2453977/seven-benefits-of-giving-out-free-samples.thtml Sugarman, S. (2009). Salt, high blood pressure, and performance-based regulation. Regulation & Governance, 3(1), pp.84-102. Suttle, r. (n.d.). New Product Pricing Strategy. [online] Smallbusiness.chron.com. Available at: http://smallbusiness.chron.com/new-product-pricing-strategy- 2782.html
  • 20. HUBS (2015/16) eSubmission - Standard 18 Swan, B. (2016). Home. [online] Sunbites.co.uk. Available at: http://www.sunbites.co.uk/ Tayto.com. (2005). How are crisps made?. [online] Available at: http://www.tayto.com/~taytogro/tayto/images/stories/downloads/secondaryInfoPa ck.pdf Thegrocer.co.uk. (2014). Revealed: one in four binge on chocolate sharing bags. [online] Available at: http://www.thegrocer.co.uk/reports/digital- features/confectionery-report-2014/revealed-one-in-four-binge-on-chocolate- sharing-bags/369836.article The Healthy Home Economist. (2011). Baked Chips as Bad or Worse Than Fried | The Healthy Home Economist. [online] Available at: http://www.thehealthyhomeeconomist.com/baked-chips-as-bad-or-worse-than-fried/ Thunstrom, l. and Nordstrom, J. (2012). The Importance of Taste for Food Demand and the Experienced Taste Effect of Healthy Labels* - An experiment on potato chips and bread. [online] Available at: http://www.handelsradet.nu/wp- content/uploads/2016/01/2012-The-importance-of-taste-for-food-demand-and- the-expected-taste-effect-of-healthy-HUIwp68.pdf Tyrrells Potato Chips. (n.d.). Tyrrells Potato Chips — Beetroot, Parsnip & Carrot Crisps with a pinch of Sea Salt. [online] Available at: https://www.tyrrellscrisps.co.uk/crisps/beetroot-parsnip-carrot-with-sea-salt Uk.iherb.com. (2016). Food Should Taste Good, All Natural Tortilla Chips, Multigrain, 5.5 oz (156 g). [online] Available at: http://uk.iherb.com/Food- Should-Taste-Good-All-Natural-Tortilla-Chips-Multigrain-5-5-oz-156-g/46189 Walkers.co.uk. (2016). Walkers Pops Crisps | Walkers UK. [online] Available at: https://www.walkers.co.uk/crisps-range/pops Walkers.co.uk. (2016). Walkers Ready Salted Crisps | Walkers UK. [online] Available at: https://www.walkers.co.uk/crisps-range/walkers-crisps/ready-salted Weiczner, J. (2015). Trading on Tweets. fortune, 172. Wholegrainscouncil.org. (2013). Whole Grain Statistics | The Whole Grains Council. [online] Available at: http://wholegrainscouncil.org/newsroom/whole-grain- statistics WHSmith. (2016). Food and Drink - Magazines. [online] Available at: http://www.whsmith.co.uk/dept/magazines-food-and-drink-09x00010
  • 21. HUBS (2015/16) eSubmission - Standard 19 Wich, D. (2015). Potato chips with the best oils and minimal additives - Toxinless. [online] Toxinless.com. Available at: http://www.toxinless.com/potato-chips ww.gov.uk. (2013). Family food 2013. [online] Available at: https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/38 5694/familyfood-2013report-11dec14.pdf