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Ideal Brand Plan

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Workshop to help brand leaders write brand plans that everyone in the organization can follow. Case Study, using fictional “Gray’s Cookies” brand to complete a Brand Plan, which is the final stage of our overall Beloved Brands planning process.

Published in: Marketing

Ideal Brand Plan

  1. 1. We make brands stronger. We make brand leaders smarter. Case Study, using fictional “Gray’s Cookies” brand to complete a Brand Plan laying out the vision, goals, strategies, financials and tactics. Brand Plan Format
  2. 2. We make brands stronger. We make brand leaders smarter. Define the Brand Think Strategically Big Idea At Beloved Brands, we use a branding approach Vision Analysis Key Issues Strategies Execution • Advertising • In-Store • Innovation • Consumers • Category • Channels • Competitors • Brand Values, Goals • Experience Brand Plan Create Brand Plans Inspire creative execution Analyze performance Sm art Creative Ideas
  3. 3. We make brands stronger. We make brand leaders smarter. 2 4 31 Strategic questions to help frame the key issues 5 Drivers and inhibitors currently facing brand. Risks and opportunities for future. Deep dive review looks at every potential area of the brand • Market: Macro view, economic indicators, consumer behavior, technology, political • Consumer: Target, buying habits, trends, consumer enemies, key insights • Channels: growth channels, major customers, available tools and programs • Competitors: Performance, positioning, innovation, pricing, distribution, perceptions. • Brand: Funnel, reputation, tracking results, pricing, distribution, financial analysis. Drivers Inhibitors Factors of strength or inertia that accelerate your brand’s growth. Weaknesses or friction slows brand down, leak to fixi Opportunities Threats Changing consumer needs, technologies, channels, legal, Competitor launch, trade barriers, customer preference. What is the core strength your brand can win on? How engaged are consumers? What is your current competitive position? How tightly connected is your consumer to your brand? What is the current business situation your brand faces? 3 1 5 4 We make brands stronger. We make brand leaders smarter. 1. Where could we be? 2. Where are we? 3. Why are we here? 4. How can we get there? 5. What do we need to do? Before getting started on your Brand Plan, map out your strategic thinking by asking 5 simple strategic questions Vision/Purpose/Goals Situation Analysis Key Issues Strategies Execute & Measure Questions to ask Planning elements 1 2 3 4 5 6 Use “where are we” questions to uncover answers that frame the overall brand plan. Lay out elements of the Brand Plan, on one page and in a formal presentation Brand Plan 2 The Annual “Brand Plan On a Page” Analysis Issues and Strategies Executional Plans P&L forecast • Sales $30,385 • Gross Margin $17,148 • GM % 56% • Marketing Budget $8,850 • Contribution Margin $6,949 • CM% 23% Drivers • Taste drives a high conversion of Trial to Purchase • Strong Listings in Food Channels • Exceptional brand health scores among Early Adopters. Highly Beloved Brand among niche. Inhibitors • Low familiar yet to turn our sales into loyalty • Awareness held back due to weak Advertising • Low distribution at specialty stores. Poor coverage. • Low Purchase Frequency even among most loyal. Threats • Launch of Mainstream cookie brands (Pepperidge Farms and Nabisco). • De-listing 2 weakest skus weaken in-store presence • Legal Challenge to tastes claims Opportunities • R&D has 5 new flavors in development. • Sales Broker create gains at Specialty Stores • Explore social media to convert loyal following. Key Issues 1. What’s the priority choice for growth: find new users or drive usage frequency among loyalists? 2. Where should the investment/resources focus and deployment be to drive our awareness and share needs for Gray’s? 3. How will we defend Gray’s against the proposed Q1 2014 ‘healthy cookie’ launches from Pepperidge Farms and Nabisco? Strategies 1. Continue to attract new users to Gray’s 2. Focus investment on driving awareness and trial with new consumers and building a presence at retail. 3. Build defense plan against new entrants that defends with consumers and at store level. Goals • Increase penetration from 10% to 12%, specifically up from 15% to 20% with the core target. Monitor usage frequency among the most loyal to ensure it stays steady. • Increase awareness from 33% to 42%, specifically up from 45% to 50% within the core target. Drive trial from 15% to 20%. Focus for sales is to close distribution gaps going from 62% to 72%. • Hold dollar share during competitive launches and continue to grow 11% post launch gaining up to 1.2% share. Target zero losses at shelf. Advertising • Use awareness to drive trial of the new Grays. Target “Proactive Preventers”. Suburban working women, 35-40.Main Message of “great tasting cookie without the guilt, so you can stay in control of your health”. Media includes 15 second TV, specialty health magazines, event signage, digital and social media Sampling • Drive trial with In-store sampling at grocery, Costco, health food stores and event sampling at fitness, yoga, women’s networking, new moms. Distribution • Support Q4 retail blitz with message focused on holding shelf space during the competitive launches. Q2 specialty blitz to grow distribution at key specialty stores. Innovation • Launch two new flavours in Q4/15 & Q4/16. Explore new diet claims, motivating and own- able. Competitive Defense Plan • Pre Launch sales blitz to shore up all distribution gaps. At launch, heavy merchandising, locking up key ad dates, BOGO. TV, print, coupons, in-store sampling. • Use sales story that any new “healthy” cookies should displace under-performing and declining unhealthy cookies. Brand Vision: To be the first ‘healthy cookie’ to generate the craving, popularity and sales of a mainstream cookie. $100 Million brand by 2020. Forecast Analysis Brand Vision Strategies Execution Key Issues Goals 1 5 4 3 2 6 5 Leading the Brand Planning process
  4. 4. Case Study: Gray’s Cookies Gray’s Cookies is based on a 40-year-old family recipe that had been used for years in a local coffee shop in Stowe Vermont. Gray’s was a local favorite and even among tourists, famous for it’s Chocolate Chip and Peanut Butter flavors. No one realized it was also a healthy treat—low fat, low calories. With the growing health trend in the 1990’s, the Gray family decided to capitalize and launched Gray’s on a regional basis in New England and received moderate success. In 2005, one of Boston’s internationally known diet experts came out with a glowing review of Gray’s. Other dieticians backed Gray’s. The brand was now receiving national attention and demand. Robert Gray, grandson of the original founder took Gray’s national. Using the regional sales results, Gray’s was able to gain a national listing at Whole Foods in 2006. Other food retailers took notice and Gray’s secured listings at Safeway, Super-Valu, Kroger, Tops and A&P. Gray has a strong listing base at food, but limited in other channels. Gray’s launched one new product every second year, with Oatmeal in 2007, Peanut Butter in 2009 and Cranberry in 2011. Only Peanut Butter is meeting current sales thresholds. Gray’s success came from “proactive preventers” consumers, who claim to work out 3+ times per week and ‘read labels before eating’. Gray’s is loved among the very tight niche, but has yet to be embraced by mainstream consumers. The brand’s awareness is soft, trial is fair, and conversion to purchase is very strong because of the taste. Gray’s recently conducted a blind taste study shows Gray’s is as good as the market leaders. On top of that, watching what Special K was doing, they did a study that showed if you used Gray’s as a Desert replacement, consumers could lose 5lbs over 12 weeks. The current customer value proposition is targeting Healthy Proactive Preventers. Arguably, Gray’s is a beloved brand already among that niche target. Where else can they go, in order to get a broader mainstream audience? Main benefit is balance of taste and health. Emotional connection is the guilt-free zone; allowing consumers to cheat, yet stay in control of their diet. Reason to believe is one backing up of the taste and the other the health. Natural ingredient is a bit of a throw away re-enforcement, maybe for the packaging. The big question for Gray’s is how do you gain a broader audience for Gray’s? Or do we try to get current users to use more. How do we use Advertising to drive more awareness? What role does gaining a broader distribution play? And while there’s been mixed success using innovation, what’s the plan going forward?
  5. 5. 2017 Brand Plan This is an example of an Ideal Brand Plan presentation to follow as a potential format or tips at each part of the plan.
  6. 6. Brand Plan Brand Vision To be the first ‘healthy cookie’ to generate the craving, popularity and sales of a mainstream cookie. Make Gray’s a $100 Million brand by 2025. 2017 Goals Goals 2017 2018 Comments Sales $27.5M $30.38M 11% growth rate Share 0.8% 1.2% New triple chocolate 0.5% share Distribution 62% 72% Increase coming mainly from fixing specialty. Awareness 33% 42% Below norm, 80% among niche, < 20% overall Purchase 10% 12% Brand promise & sampling helps drive trial. Repeat 4% 5% High quality Taste converts high repeat Vision and Goals
  7. 7. Brand Plan Sales Projection Forecast for 2016 $27,354 Current LE for the year. Forecasted Gains Comments Added Awareness $6,565 New consumers become aware of Grays Higher Trial Rate 2,000 Using awareness and sampling to drive trial Wal-Mart listing 340 New food listing C store Listing 200 Based on success of last year's test New Innovation 1,500 Two new flavours in Q3 Forecasted Declines Two New Launches 4,500 Ipsos predicted impact on Gray's Lost spring displays 630 Cancelled displays to pay for defense plan Discontinued flavors 430 Cutting two worst performers Net Forecast for 2017 $30,385 Expected gain for 2017 will be +11% growth.
  8. 8. Brand Plan Profit Projections 2015 2016 2017 $ g% $ g% $ g% Comments Net Sales 21,978 44% 27,354 24% 30,385 11% With 2 competitors launching, growth will slow to +11% Cost of Goods Sold 10,333 40% 12,606 22% 13,237 5% New plant production has given lower cost of goods. Gross Margin 11,645 49% 14,748 27% 17,148 16% Gross margins continue to make efficiency gains. GM % 53% 54% 56% R&D 346 3% 352 2% 360 2% Holding steady R&D flavor innovation budget. Marketing Budget 5,528 22% 7,962 44% 8,850 11% Spending up in line with the sales forecast. Ad Merchandisers 568 22% 855 51% 850 -1% TV 1200 42% 900 -25% 1200 33% Increased budget as part of defense plan On Line 233 3% 480 106% 900 88% Staying competitive with shift to on line. Print 1355 22% 1050 -86% 1000 -100% Continued use of specialty health magazines PR 59 15% 77 31% 200 160% Sampling 500 4% 1200 140% 1400 17% Sampling is part of the mix to drive trial. Defense Plan. Sponsorship 100 33% 500 400% 0 -100% Research 200 55% 300 50% 500 67% Added tracking of two competitive launches. Packaging 133 66% 100 -25% 50 -50% Display 430 44% 1300 202% 1400 8% Lock up displays during the competitive launches. Trade 750 1200 60% 1350 13% Increased trade spend to stay competitive. Other SG&A 2,000 22% 289 -86% 989 242% Contribution Income 3,771 22% 6,145 63% 6,949 13% Gains coming from production efficiencies. CI % 17% 22% 23%
  9. 9. Brand Plan Business Review summary • Consumer: New consumers attracted to Gray’s “guilt free” positioning, but conversion to loyalty is due to the great taste. • Category: As America’s eating habits are changing the cookie category is shrinking, while the good-for-you segment thrives. • Channels: Gray’s has many distribution gaps, but needs to be mindful of choices, to maintain investment in driving consumer demand. • Competitors: Grays has an opportunity to dominate the good for you competitors before traditional brands enter segment. • Brand: Growth has come from product quality, but new “guilt free” position will connect deeper and fuel demand It is time to transition Gray’s from a product-led brand into an idea-led brand by connecting with consumers by owning the idea of “guilt free” snacking, rather than just selling a great tasting cookie. Begin to dominate and lead the “good for you” cookie segment. Themes each section from the review Major Brand Challenge
  10. 10. Brand Plan Drivers 1. Gray’s great taste drives a high conversion of Trial to Purchase (65% vs. norm of 50%). 2. Strong Listings has driven strong distribution in Food Channels (95%) 3. Exceptional brand health scores among Early Adopters (“Proactive Preventers”) making it a highly Beloved Brand among the niche. Inhibitors 1. Brand Funnel scores show that we are still a niche player (low familiar), but have yet to turn our sales into strong following (low loyalty) 2. Awareness among mainstream target (20%) held back due to weak Advertising scores. Low Attention scores and Brand Link scores. 3. Low distribution at specialty stores at only 16%. Poor sales coverage. 4. Low Purchase Frequency (2.2 boxes per year vs. norm of 7.3) even among the most loyal early adopters. Gray’s Cookies Drivers and Inhibitors
  11. 11. Brand Plan Risks • Mainstream cookie brands could enter the ‘health’ segment through R&D or Acquisition. Rumors that Pepperidge Farms will launch in Q1 2014, and Nabisco Q3 2014. • De-listing of our 2 weakest skus (Oatmeal and Cranberry) because of POS thresholds, could weaken our in-store presence down to 3 skus. • Legal Challenge to “tastes as good as your favorite cookie”. Opportunities • R&D has 5 new flavors in development. Could launch Peanut Butter in Q4 of 2013 (top 15% in testing), Chocolate Chunks in Q2 of 2014 (top 50%) • Specialty Sales Broker could specifically target Specialty Stores, which are in high growth mode (+15% per year) • Explore social media options as a vehicle for converting strong loyal following into a more mainstream mass appeal. Gray’s Cookies Risks and Opportunities
  12. 12. Brand Plan Key Issues and Strategies What’s the priority for growth: driving new users or driving frequency among current users? How do we fix the distribution gaps to add to Gray’s momentum? 1 2 How will we defend Gray’s against the proposed Q1 2014 ‘healthy cookie’ launch from Nabisco? 3 Key Issues Strategies Continue to dominate healthy cookie segment, owning “great tasting lowest calorie” claims pointing out Nabisco’s 30% higher calories to help maintain Gray’s loyal fan base. Gain new “proactive preventers” by advertising Gray’s “stay in control” positioning, moving consumers from consideration to trial and drive Gray’s market share Fix Gray’s distribution gaps at Drug and mass with a sales force blitz to continue Gray’s momentum to drive Gray’s market share.
  13. 13. Brand Plan Gain new “proactive preventers” by advertising Gray’s “stay in control” positioning, moving consumers from consideration to trial and drive Gray’s market share Strategy #1 Goals: • Increase penetration from 10% to 12%, specifically up from 15% to 20% with the core target. Monitor usage frequency among the most loyal to ensure it stays steady. Tactical Program: • Ensure all programs target the “Proactive Preventer” target, who is 35-40 female, who work out 3x a week. • Use “guilt free treat” message across advertising, packaging, in-store and events, which has tested as the most motivating and own-able message for Gray’s. • Recommend a balanced consumer marketing mix of advertising to drive positioning and sampling to drive trial. More details are outlined on the next strategy. Watch out: • At this point, we believe the product taste and consumer habits around healthy eating can help drive frequency of use.
  14. 14. Brand Plan Fix Gray’s distribution gaps at Drug and Mass investing in a sales force blitz to continue Gray’s momentum and drive Gray’s market share. Strategy #2 Goal: • Increase awareness from 33% to 42%, specifically up from 45% to 50% within the core target. Drive trial from 15% to 20%. Focus for sales is to close distribution gaps going from 62% to 72%. Tactical Program: 1. Mass TV Advertising and specialty Health Magazines helps to drive awareness in the most efficient manner, focused on appointment and specialty TV. 2. Increase amount of digital, using Facebook, Pinterest and Instagram to catch young moms. Build social media network of core loyal users. 3. In store and even sampling to re-enforce trial. Use in-store sampling to secure end aisle displays. 4. Sales Team to secure added distribution at Specialty stores. 5. R&D should focus on driving annual innovation to create an optimized portfolio mix. Watch outs: • Trying to do too many activities overloads the team, watch the working/non-working marketing spend.
  15. 15. Brand Plan Continue to dominate healthy cookie segment by owning “great tasting” and “lowest calorie” claims pointing out Nabisco’s weakness with 60% higher calories to help maintain Gray’s strong and loyal fan base. Strategy #3 Goal: • Hold dollar share during competitive launches and continue to grow 11% post launch gaining up to 1.2% share. Target zero losses at shelf. Tactical Program: 1. Pre-launch (Q4) sales team to shore up all distribution gaps. Leverage category data to close deals. At launch defense plan (Q1) includes heavy merchandising, locking up key ad dates and BOGO. 2. Marketing support (Q1) includes 15s TV ads and high frequency magazine 1/3 page ads to muddy airwaves, coupons and in-store sampling. 3. Use sales story that any new “healthy” cookies should displace under-performing and declining unhealthy cookies. Watch outs: • Stay aware of exact timing to ensure focused defense plan lines up. Cannot lose our shelf space. Hold $2 Million contingency defense plan for Q2/Q3 timing, depending on performance of the competitive launches.
  16. 16. Brand Plan Brand Communications Plan Execution Plan Strategy: • Use awareness to drive trial of the new Grays Cookies as “The Healthy Choice to Snacking” brand positioning. Increase penetration from 10% to 12%, specifically up from 15% to 20% with the core target. Target Market: • “Proactive Preventers”. Suburban working women, 35-40, who do whatever it takes to stay healthy. Main Benefit: • Guilt free cookie that tastes so good that you can stay in control of your health. Support Points: • In blind taste tests, Gray’s matched the leaders on taste, but only 100 calories and 3g of net carbs. • In a 12-week study, consumers using Gray’s once a night as a desert were able to lose 5-10 pounds. Big Idea: • Grays are the best tasting yet guilt free pleasure. What do we want consumers to think, do or feel? Desired Response: • Try Grays to see if they like the great taste. Media Options • Main creative will be TV 15-second spot, with specialty health magazines, event signage and in-store sampling. Want to carry the idea into digital, social media and a microsite.
  17. 17. Brand Plan Advertising & Communications Plan • Leverage Gray’s positioning around “guilt free pleasure”, which scored very high in positioning concept testing. The key is to build a creative that can showcase the 12 week study that shows you can lose 5 pounds. To (Target) • Healthy proactive preventers who want to do more for their health, working moms, who are 35-40 years old. Gray’s is the (Category) Tasty healthy cookie option That is the (Benefit) • Guilt free cookie that tastes so good that you can stay in control of your health That’s because (Support Points) • In blind taste tests, Gray’s matched the leaders on taste, but only 100 calories and 3g of net carbs. • In a 12-week study, consumers using Gray’s once a night as a desert were able to lose 5-10 pounds. Execution Plan
  18. 18. Brand Plan Gray’s Creative Brief Brief Part A 1. Why Are We Advertising Drive trial of the new Grays Cookies as “The Healthy Choice to Snacking” brand positioning. 2. What’s the Consumer Problem We are Addressing I’m always watching what I eat. And then BAM, I see a cookie and I’m done. As much as I look after myself, I still like to sneak a cookie now and then. 3. Who are you talking to? “Proactive Preventers”. Suburban working women, 35-40, who are willing to do whatever it takes to stay healthy. They run, workout and eat right. For many, Food can be a bit of a stress-reliever and escape even for people who watch what they eat. 4. Consumer Insights • “I have tremendous will-power. I work out 3x a week, watch what I eat and maintain my figure. But we all have weaknesses and cookies are mine. I just wish they were less bad for you” • “I read labels of everything I eat. I stick to 1500 calories per day, and will find my own ways to achieve that balance. If I eat a 400 calorie cookie, it may mean giving something up.” 5. What does our consumer think now? I’ve never heard of Grays Cookies. But I’d likely need to try it and see if I like it. If it really does taste that good, it’s something I might consider as a snack. 6. What do you want your consumer to think/feel/do? (Desired Response) We want them to try Grays and see if they like the great taste. Brief Part B 7. What should we tell them? (Stimulus: benefit) With Grays Cookies you can still have a great tasting cookie without the guilt, so you can stay in control of your health. 8. Why should they believe us? In blind taste tests, Grays Cookies matched the market leaders on taste, but only has 100 calories and 2g of fat. In a 12 week study, consumers using Grays once a night as a desert were able to lose 5lbs. 9. Brand Positioning Statement For “Proactive Preventers”, Women 30-45, Grays Cookies are the best tasting yet guilt-free pleasure so you can stay in control of your healthy lifestyle. That’s because Grays combines the great taste in a low fat and calorie sensible cookie. In blind taste tests, Grays Cookies matched the market leaders on taste, but only has 100 calories and 2g of fat. In a 12 week study, consumers using Grays once a night as a desert were able to lose 5lbs. 10. Tone and Manner Successful, Motivated, Reliable, In Control, Natural. 11. Media Options Main creative will be in specialty health magazines, event OOH signage and in-store. Want to carry the idea into digital, social media and a microsite. 12. Mandatories The line: “best tasting yet guilt-free pleasure” is on the packaging. 25% of Print must carry the Whole Foods logo as part of our listing agreement and include the Legal disclaimer on the taste test and the 12 week study. Advertising & Communications Plan Execution Plan
  19. 19. Brand Plan Brand Sampling Plan Execution Plan Strategy: • Use in-store and event sampling to drive trial of the new Grays Cookies as “The Healthy Choice to Snacking” brand positioning. Increase penetration from 10% to 12%, specifically up from 15% to 20% with core target. Target Market: • “Proactive Preventers”. Suburban working women, 35-40, who do whatever it takes to stay healthy. Main Benefit: • Guilt free cookie that tastes so good that you can stay in control of your health. Support Points: • In blind taste tests, Gray’s matched the leaders on taste, but only 100 calories and 3g of net carbs. • In a 12-week study, consumers using Gray’s once a night as a desert were able to lose 5-10 pounds. Big Idea: • Grays are the best tasting yet guilt free pleasure. What do we want consumers to think, do or feel? Desired Response: • Try Grays to see if they like the great taste. Location Options • In-store sampling: grocery, Costco, health food stores. Event Sampling: Fitness Shows, Yoga events, Women’s networking and new Mom groups.
  20. 20. Brand Plan Category Management Plan Strategy: • Gain added distribution points at specialty stores. Hold shelf space at grocery, health stores during the competitive launches. Focus on increasing distribution from 62% to 72%. Target Market: • “Proactive Preventers”. Suburban working women, 35-40, who do whatever it takes to stay healthy. Main Benefit: • Guilt free cookie that tastes so good that you can stay in control of your health. Support Points: • In blind taste tests, Gray’s matched the leaders on taste, but only 100 calories and 3g of net carbs. • In a 12-week study, consumers using Gray’s once a night as a desert were able to lose 5-10 pounds. Big Idea: • Grays are the best tasting yet guilt free pleasure. What do we want people to think, do or feel? Desired Response: • Try Grays to see if they like the great taste. Programs: • Support Q4 retail blitz with message focused on holding shelf space during the competitive launches. Q2 specialty blitz to grow distribution at key specialty stores. Execution Plan
  21. 21. Brand Plan In-Store Plan Execution Plan Strategy and Tactics: • Leverage key results, planogram recommendations and in-store specialty store merchandising team to build displays, manage shelf sets. • Drive fair share of shelf, merchandising and leverage in-store sampling events for added distribution and display. • Use sales blitz team to increase distribution at specialty stores, while holding shelf space at grocery, health stores during the competitive launches. Focus on increasing distribution from 62% to 72%. Target Market: • “Proactive Preventers”. Suburban working women, 35-40, who do whatever it takes to stay healthy. Main Benefit: • Guilt free cookie that tastes so good that you can stay in control of your health. Big Idea: • Grays are the best tasting yet guilt free pleasure. What do we want consumers to think, do or feel? Desired Response: • Try Grays to see if they like the great taste. Programs • Q2 specialty blitz to grow distribution at key specialty stores. • Support Q4 retail blitz with message focused on holding shelf space during the competitive launches. • Gain displays for back-to-school promotional lunch program.
  22. 22. Brand Plan Innovation Plan Execution Plan Strategy: • Leverage stage gate process to gain approvals and consumer acceptance. Continually launch new flavors, expanding the Gray’s line up. Leverage 2 new innovations to build the Gray’s line up around key flavor trends among our “proactive preventer” target. Target Market: • ‘Proactive- preventers’, suburban working women, 35-40, who do whatever it takes to stay healthy. Main Benefit: • Guilt free cookie that tastes so good that you can stay in control of your health. Support Points: • In blind taste tests, Gray’s matched the leaders on taste, but only 100 calories and 3g of net carbs. • In a 12-week study, consumers using Gray’s once a night as a desert were able to lose 5-10 pounds. Big Idea: • Grays are the best tasting yet guilt free pleasure. Internal Beacon: • Healthy doesn’t have to taste bad. We need to make healthy, low carb cookies that never settles on taste. Continue to push the taste profile to ensure we are as good as the non-healthy cookies. Programs: • Launch Lemon Poppyseed in 2017, Lemon in 2018. Explore new formats and diet claims motivating to target and own-able for Gray’s.
  23. 23. Brand Plan Competitive Defense Plan Strategy: • Build defense plan against new entrant that defends with consumers and at store level. Hold dollar share during launch and continue to grow 11% post launch gaining up to 1.2% share. Target zero losses at shelf. Target: • Current heavy users of Gray’s, so we can hold on to them during the first few months of the launch. Leverage the excitement of two new launches to gain new users. “Proactive Preventers”. Suburban working women, 35-40, who do whatever it takes to stay healthy. Big Idea: • Grays are the best tasting yet guilt free pleasure Desired Response: • Try Grays to see if they like the great taste. Program: • Pre-launch (Q4) the sales team to shore up all distribution gaps. Leverage category data to close deals. • At launch defense plan (Q1) includes heavy merchandising, locking up key ad dates and Buy-One-Get- Ones (BOGOs). • Marketing support (Q1) includes 15s TV ads and high frequency magazine 1/3 page ads to muddy airwaves, couponing and in-store sampling. • Use sales story that any new “healthy” cookies should displace under-performing and declining unhealthy cookies. Execution Plan
  24. 24. Brand Plan Plan Calendar Activities J F M A M J J A S O N D TV Adv. (15 sec) Print in Health Magazines (full page) Digital Ads Social Media Hits PR in health Magazines In-store Sampling Event Sampling Retail Blitz Special Store Blitz In store BOGO Display Program FSI Couponing Programs Communications Sampling In store Coupons
  25. 25. Brand Plan Marketing Budget Breakout Activities 2014 2015 2016 Comments Merchandisers Artwork 68 55 50 Merchandising went up significantly in 2015, we are expecting it to hold through 2016. Signage 200 300 300 Fees 300 500 500 TV Advertising Production 350 0 350 We make a new TV spot every 2 years, needs re-fresh behind new message for 2016 Talent 50 50 50 Media 800 850 800 TV media holding at 800, as we shift some spend to on line. Print Production 155 200 150 Major part of plan. Decline is more that we are shifting to on line version of same magazines. Talent 100 100 100 Media 1100 850 750 On Line Production 50 100 100 Talent 15 20 80 Media 100 260 520 On line continues to grow as we look to online to target Healthy Proactive Preventers Social Media 20 100 200 Using social media to connect to our most loyal users and creating a following for Gray’s. Sampling Sample costs 100 300 350 Supplier 100 100 125 Both events and retailer sampling shown to drive a high conversion of trial to usage and Event Costs 100 400 425 becoming a Loyal user. This will be a major part of our defense plan to tie up sampling events Retailer Costs 200 400 500 In Q1 to thwart the competitive launch. Research Tracking 100 150 250 Significant increase due to tracking of two new competitors plus ensuring Gray’s is healthy. Testing 100 150 250 Other Marketing Packaging 133 100 50 Sponsorship 100 500 0 Sponsorship did not pay out so it was cut to fund increases in sampling and on line. PR costs 59 77 200 Display Artwork 80 150 150 Display up significantly Signage 200 350 400 Fees 150 700 850 Trade Marketing Coop/Display 750 1200 1350 MARKETING BUDGET 5480 7962 8850 Increased in line with sales growth. Contingency defense spend.
  26. 26. Gray’s Cookies Plan on a Page Analysis Issues and Strategies Executional Tactics P&L forecast • Sales $30,385 • Gross Margin $17,148 • GM % 56% • Marketing Budget $8,850 • Contribution Margin $6,949 • CM% 23% Drivers • Taste drives a high conversion of Trial to Purchase • Strong Listings in Food Channels • Exceptional brand health scores among Early Adopters. Highly Beloved Brand among niche. Inhibitors • Low familiar yet to turn our sales into loyalty • Awareness held back due to weak Advertising • Low distribution at specialty stores. Poor coverage. • Low Purchase Frequency even among most loyal. Risks • Launch of Mainstream cookie brands (Pepperidge Farms and Nabisco). • De-listing 2 weakest skus weaken in-store presence • Legal Challenge to tastes claims Opportunities • R&D has 5 new flavors in development. • Sales Broker to create gains at Specialty Stores • Explore social media to convert loyal following. Key Issues 1. What’s the priority choice for growth: find new users or drive usage frequency among loyalists? 2. Where should the investment/resources focus and deployment be to drive our awareness and share needs for Gray’s? 3. How will we defend Gray’s against the proposed Q1 2014 ‘healthy cookie’ launches from Pepperidge Farms and Nabisco? Strategies 1. Continue to attract new users to Gray’s 2. Focus investment on driving awareness and trial with new consumers and building a presence at retail. 3. Build defense plan against new entrants that defends with consumers and at store level. Goals • Increase penetration from 10% to 12%, specifically up from 15% to 20% with the core target. Monitor usage frequency among the most loyal to ensure it stays steady. • Increase awareness from 33% to 42%, specifically up from 45% to 50% within the core target. Drive trial from 15% to 20%. Focus for sales is to close distribution gaps going from 62% to 72%. • Hold dollar share during competitive launches and continue to grow 11% post launch gaining up to 1.2% share. Target zero losses at shelf. Advertising • Use awareness to drive trial of the new Grays. Target “Proactive Preventers”. Suburban working women, 35-40.Main Message of “great tasting cookie without the guilt, so you can stay in control of your health”. Media includes 15 second TV, specialty health magazines, event signage, digital and social media Sampling • Drive trial with In-store sampling at grocery, Costco, health food stores and event sampling at fitness, yoga, women’s networking, new moms. Distribution • Support Q4 retail blitz with message focused on holding shelf space during the competitive launches. Q2 specialty blitz to grow distribution at key specialty stores. Innovation • Launch two new flavours in Q4/15 & Q4/16. Explore new diet claims, motivating and ownable. Competitive Defense Plan • Pre Launch sales blitz to shore up all distribution gaps. At launch, heavy merchandising, locking up key ad dates and BOGO. TV, Magazine, couponing and in-store sampling. • Use sales story that any new “healthy” cookies should displace under-performing and declining unhealthy cookies. Brand Vision: To be the first ‘healthy cookie’ to generate the craving, popularity and sales of a mainstream cookie. Make Gray’s a $100 Million brand by 2020.
  27. 27. The 5-Year Brand Strategy Roadmap Promise: Experience:Innovation Purchase MomentStory: Vision: Purpose: Values: The Big Idea: Grays are the best tasting yet guilt free pleasure Build community of Brand Lovers Explore entering new food categories Leader of healthy cookie cement Become alternative to mainstream cookies To be the first ‘healthy cookie’ to generate the craving, popularity and sales of a mainstream cookie. We believe that healthy does not have to taste bad. We make healthy, low carb cookies that never settles on taste, and helps people stay in control of their health. Consumer first, great taste, healthy, natural ingredients, fast-to-market, family owned. Goals: Issues: Strategies Tactics $100 Million brand by 2020, become a mainstream brand, increase usage, longer term penetration gains. 1. How do we tighten the bond with our most loyal brand lovers? 2. How do we balance driving penetration and usage frequency? 3. How will we defend Gray’s leadership position in the Healthy Cookie segment? 4. How do we leverage “guilt free” idea across new food categories Take control of your weight by replacing your favorite snack with Grays. Real life stories that show women living “All the pleasure. None of the guilt.” We never sacrifice on taste, you won’t have to sacrifice your cookie. Interrupt purchase routine to set up Grays as the better alternative. We hope your weight loss results empowers you to stay in control. • Social Media to connect brand lovers • Surprise and delight program to most loyal • Explore geographic expansion • Drive penetration using advertising & nutritionist PR • Continue to attract new users to Gray’s • New flavor launches to replicate mainstream • Dominate shelf in every channel • Attack all competitive entries • Leverage influence of brand lovers • Build “guilt free” idea • Innovation focused on new segments • Early trial with brand lovers
  28. 28. Brand Plan Brand Vision • To be the first ‘healthy cookie’ to generate the craving, popularity and sales of a mainstream cookie. Make Gray’s a $100 Million brand by 2020. Strategies 1. Continue to attract new users to Gray’s 2. Focus investment on driving awareness and trial with new consumers and building a presence at retail. 3. Build defense plan against new entrants that defends with consumers and at store level. Objectives for 2016 1. Continue to gain new users for Gray’s, driving trial from 15% to 20% and household penetration from 10% to 12%. 2. Hold Gray’s share during the two competitive launches and show 11% sales growth. 3. Increase Gray’s distribution from 61% to 72%, while increasing the footprint of “healthy cookies” at the shelf. Gray’s Cookies Plan Summary
  29. 29. Appendix to the Plan
  30. 30. Brand Plan Brand Health and Wealth Internal Health: Divided team on whether to go after new users or drive frequency among core users. Advertising programs has not created awareness. Channel strength has not reached beyond Food. Innovation has not been consistent. External Health: Gray’s is a beloved brand among a core niche (“Preventers”) but relatively indifferent and unknown among broader audience. Even among loyalists, frequency is very weak. Gray’s is a special treat rather than a usual brand. Internal Wealth: Gray’s has a unique recipe. With marketing investment, profit margins have fallen from 12% to 9%, without seeing the growth ROI from the programs. Debate on whether Gray’s should focus on channel growth vs. marketing led programs. External Wealth: Gray’s has a strong growth rate at +20% CAGR. Sales of $25Million with a 48% gross margins, above category norm of 42%. Gray’s has achieved a 3.3% share at grocery but only 0.4% in the other channels. Internal Brand Wealth External Brand Health
  31. 31. Brand Plan Summary Analysis Drivers Inhibitors • Taste drives a high conversion of Trial to Purchase (65% vs. norm of 50%). • Strong Listings has driven strong Distribution in Food Channels (95%) • Exceptional brand health scores among Early Adopters (“Proactive Preventers”) making it a highly Beloved Brand among the niche. • Awareness among mainstream target (20%) held back due to weak Advertising scores. Low Attention scores and Brand Link scores. • Low distribution at specialty stores at only 16%. Poor sales coverage. • Low Purchase Frequency (2.2 boxes/yr vs. 7.3 norm) even among most loyal early adopters. Opportunities Threats • R&D has 5 new flavors in development. Could launch Peanut Butter in Q4 of 2013 (top 15% in testing), Chocolate Chunks in Q2 of 2014 (top 50%) • Sales broker could specifically target specialty stores, which are in high growth (+15%/year) • Explore social media to convert strong loyal following into more mainstream mass appeal • Mainstream cookie brands could enter the ‘health’ segment through R&D or Acquisition. Rumors that Pepperidge Farms will launch in Q1 2014, and Nabisco Q3 2014. • De-listing of our 2 weakest skus (Oatmeal and Cranberry) because of POS thresholds, could weaken our in-store presence down to 3 skus. • Legal Challenge to “tastes as good as your favorite cookie”.
  32. 32. Brand Plan Taste drives a high conversion of Trial to Purchase (65% vs. norm of 50%). • In a blind taste test, Gray’s performed equal to the consumer’s regular cookie. When Consumers found out it was a low fat, low calorie option, they said they would make it their regular cookie. • In the market, Gray’s has a very high conversion to purchase beating the norm (65% to 50%) and considerably higher than the other two ‘healthy’ cookies (Dad’s and Sarah’s) • Gray’s taste helps drive a high repeat %, beating norm 40% to 25%. Conversion % to Purchase Repeat % Continue to look to opportunities to drive trial, because of the high conversion to purchase. Driver #1
  33. 33. Brand Plan • In the food channels, Gray’s has 90% distribution compared to 60% to Dad’s, our nearest ‘healthy’ cookie competitor. • However, Gray’s has an over-reliance on the Food channel, with 73% of the business coming from the Food channel, compared with 40% of Dad’s, who have a much more balanced distribution. The category norm is 38%. Strong Listings has driven strong Distribution in Food Channels (90%) Gray's Dad's Food Distribution Share of Business from Food Need to maintain strength at Food, even while looking at new distribution points. Driver #2
  34. 34. Brand Plan Exceptional brand health scores among Early Adopters (“Proactive Preventers”) make it highly beloved brand among niche. Preventers Overall Norm • Gray’s is very healthy among “Preventers” with strong awareness at 80% and all related Brand Funnel scores significantly above norm. However, that strength has not carried over to the overall market, where Gray’s is significantly under-developed in the overall market. Brand Funnel Scores Preventers vs. Overall Explore ways to leverage Love from Preventers, as early adopters, to influence the rest of the market. Driver #3
  35. 35. Brand Plan Brand Funnel scores show niche player (low familiar), but have yet to turn our sales into strong following (low loyalty) • Skinny Brand Funnel shows a lot of gaps, pointing to the lack of marketing success in generating awareness, • Year 6, Gray’s still has very low Brand Awareness (33% vs. 60% norm). • Poor Ad tracking shows low Attention (30% vs. norm of 50%) and poor Brand Link ratio (.32 vs. . 55 norm) Both ends of funnel need fixing. Need to choose between either building awareness or driving loyalty. Inhibitor #1
  36. 36. Brand Plan • While Gray’s is exceptionally strong in Food, it is equally weak in the Specialty channels, with only 16% distribution compared to Dad’s at 72%. • In Specialty, Gray’s focuses on national listings but there are very few national accounts. Dad’s uses 210 part time merchandisers to reach the Specialty channel. Low distribution at specialty stores at only 16%. Poor sales coverage. Explore options to reach the specialty market, which could add incremental sales volume. Inhibitor #2

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