3. “Low Prices, great rewards. Get yours at Kroger.”
#Krogering
Executive Summary
As the leading grocery store spending an $888 million on advertising can be
utilized from Digital Billboards, Ads on Hulu and YouTube. Reaching out to a
digital media audience, to start recruiting the Gen Zers and Millennials as
future conversions. By using our Facebook and other social media
platforms to set up advertisements, we are broadening our brand
awareness. We hope by seeking new advertising campaigns we can be the
#1 grocer in the United States and in the markets in which the brick-and-
mortar locations are available and work on expanding.
4. Promotional Mix
Budget
In 2020, Kroger spent $888 Million on advertising.
Media Channels
• Social Media advertising
• Streaming TV advertising
• Digital Billboard advertising
Social Media Advertising
With social media popularity on the rise, utilizing this advertisement
channel, we should see more leads by views. The average cost for this
form of advertisement was $6.78 CPM or cost per thousand. By having a
presence on Facebook, we plan to spend up to $560 a month on our ad
that will be shown on the website and app. We will also be spending the
same amount on Instagram for advertising on their app. To start with the
gen Zers started with brand recognition, we will spend $155 a month on
advertising.
Streaming TV Advertising
We will be advertising on Hulu and YouTube. The total startup costs for
advertising on Hulu is roughly $500 per campaign. The amount of
advertising time on YouTube is measured in CPM or cost per thousand and
that is about $10-$30 CPM. The length is roughly 15, 30 or 60 seconds and
the ad can be used on both platforms so all that we would need would be
5. production costs. Production costs are $2,000-$50,000 depending on the
quality of commercial we set to achieve. I believe that if we do a basic
commercial for brand awareness in our target areas, we may spend an
upwards of $10,000 at least with production and broadcasting.
Digital Billboard Advertising
The cost of digital billboard advertising is $1,200-$15,000 monthly. If we
use this method of advertising, we could place ads on all the digital
billboards in our target areas. We want to advertise to residential areas as
well as metroplexes. This will allow future customers to be exposed to the
brand across these areas. If we created an ad that just says #Krogering, for
example, we will pique the interests of millennials and gen Zers and they
will in turn use the handle across all social media platforms and learn what
our brand is all about. This will also set the algorithm in social media
platforms to show more of our ads in daily use to these leads.
6. Company Background
In 1883, in Cincinnati, Ohio, Kroger was founded and soon became incorporated in the
early 1900s. Run by Barney Kroger, who discovered he should have his bakery with the
meat and seafood to make shopper’s experiences more efficient. Through acquisitions
and mergers this company has become as large as it is today ranking #17 on the
Fortune 100 list published June 2021, (2020 Kroger Factbook, 2020). In 1973, they
introduced the first digital scanner for their stores.
The company’s mission statement states we're on a mission to end hunger in the
communities we call home and eliminate waste across our company by 2025, (Kroger,
2021). The company’s vision statement is to be a leader in the distribution and
merchandising of food, pharmacy, health and personal care items, seasonal
merchandise, and related products and services. Some of their core values are honesty,
integrity, respect for others, diversity, safety, and inclusion.
Financially the company is doing well. They are one of the largest retailers in the United
States and are ranked #17 on the Fortune 100 list. Total company annual sales totaled
$132.5 billion for fiscal year 2020, (2020 Kroger Factbook, 2020). During the second
quarter, they compared their sales from last year and saw a $1.2 million increase. Since
7. they sell fuel, a significant amount of income is coming from that. They also have their
own line of products that competes with the name brands that are out there. They also
were able to help with the COVID relief.
Their current target markets are people who need their services. Since they have now
acquired a Jeweler as a business partner, along with offering gas and their brand
products and groceries, they now have a new market of people that would be wanting
jewelry. They have competitive prices when it comes to gas, so they are also offering
rewards points for shoppers which brings in a new market of people. They say their
customers are put first and they show this every day.
Kroger has a presence in social media as well as TV commercials. They also care about
the community sharing with zero hunger/ zero waste. They have numerous
commercials on TV and appear to update their status regularly on social media
accounts. Found on Facebook is a couponing group for Kroger helping to further
advertise their brand. They have ads out in newspapers as well.
8. SWOT Analysis
Strengths
Excellent Customer Relations
Lead the grocery business by being the first
to have a scanning system
Has the most product offerings in the
business
Offers customer incentives for shopping
Weaknesses
Not as strong of a presence on social media
Opportunities
Take advantage of their incentives program
by offering more
Have a stronger presence in social media
campaigns
Have more TV commercials explaining our
gas rewards program for customers
Threats
Other retailers, such as Walmart
Pandemic still affecting some of the business
Smaller markets not being utilized
The economy not being as big as it once was
9. Target Audience
The target audience for Kroger is men and women ranging in age from 18-
100. This market encompasses all those who would benefit from the
shopping experience Kroger has to offer. These customers will not only
benefit from shopping at Kroger but will also create a new lifestyle with the
healthy options Kroger has. These customers will be located near brick-
and- mortar stores and will need to do their daily shopping at Kroger.
I selected this target audience because it covers all those who would
benefit from shopping at Kroger. Most of the customers shopping at Kroger
will be adults who have their own household and are needing to supply
their home with groceries. They also could benefit from utilizing the gas
points to fuel their vehicles. With the healthy options available, this could
reach a new market of customers that are concerned with health.
The audience would feel like Kroger makes their lives easier. By offering a
wide array of products, Kroger aims to be the top provider for their
customer’s needs. Healthy options focus on providing the customers who
are health conscious with a selection of goods to serve their needs. By
offering low prices, this appeals to the customers who are on a fixed
income to help them shop with ease. The gas station helps fuel the area
with gas for their cars and by giving the incentive of points for rewards such
as lower gas prices, this encourages people to shop at their stores.
10. Target Consumer Definition
This is Hannah. She is a businesswoman
that currently shops at Kroger. She is in her
30s and is very health conscious. She loves
that Kroger provides her with all the healthy
options she needs and loves the fact that
she can benefit from the points she earns to help her save money on gas.
Hannah was born in the United States and grew up with a very supportive middle-class
family. They have always been customers of Kroger and are happy to promote the
business in their everyday life. Hannah graduated from high school and went on to
excel in college. She earned a bachelor’s in business administration and loves the work
she does. She enjoys exercising regularly and eating healthy is her main objective.
Since Kroger has numerous healthy options available to her, Hannah enjoys her
shopping experience as well.
Hannah lives in Dallas, Texas and loves her city. She loves the fact that she can work in
the big city and has made a good life for herself here. She is now a middle-class citizen
herself and Kroger meets all her everyday needs. From earning gas points to picking
up prescriptions, she is thoroughly covered in any and everything she may need.
Hannah loves that Kroger has her covered all around and will continue to promote and
shop at their brand.
11. Goals, Objectives, and Strategies
Goal:
To create a stronger brand awareness in millennials and gen Zers.
Objective 1:
Increase brand recognition by 50% in 6 months.
• Place more ads on television
• Utilize signs and advertising space within markets that have stores
• Offer special discounts for college students
• Try advertising at colleges where Kroger has a presence
Objective 2:
Increase brand recognition by 75% in 12 months
• Utilizing all advertising spaces will help show who the brand is
• Promote wellness within new market customers and encourage
them to shop at Kroger
• Hold events to showcase discounts offered daily
12. Points-of-Parity
Tagline:
“Low prices, great rewards. Get yours at Kroger.”
Rejected:
Fresh, healthy everyday necessities at a great price just for you.
Get rewards for you and your family by shopping at Kroger.
Customer service at its finest and low prices to save your wallet.
We produce excellence. Shop at Kroger.
13. Creative Brief
What are we advertising?
We are advertising that we have great prices with rewards for gas by
shopping with Kroger. That we have fresh, healthy options for your
everyday needs.
Whom are we talking to?
We are reaching out to adults ranging in age from 18-100 to provide them
with everyday necessities from groceries to gas.
What do they currently think?
They currently know that we have competitive pricing with potential
discounts on gas prices by shopping with us.
What would we like them to think?
That we have the best prices in town and reward for shopping with us and
our customer service is the best there is.
What is the single most persuasive idea we can convey?
We are the top of the line when it comes to prices, customer service and
rewards.
Why should they believe it?
Because we prove it every day that we are open.
Are there any creative guidelines?
Just hold up to the stand that is Kroger and produce excellence.
14. Conclusion
IMC Communications, which I have learned in this course, is a very
research extensive course. The information is easily obtained thanks to the
internet and makes the research a little easier. However, you must make
sure you’re getting a website that’s credentials check out or come from a
reputable company.
For the Kroger campaign, I believe that these should be advertising
channels that should be investigated if it hasn’t already. Since social media
is blowing up, I would think that would be a great start and then grow from
there.
Digital Billboards are directed at all who may see them and most of the
viewers will be the demographic we are looking for. I think by utilizing this
we will appeal to the Millennials and Gen Zers. By sneakily putting
#Krogering only on billboards across the cities we have physical locations,
we can appeal to a younger market to start planting the seed that Kroger
cares and is for everyone no matter who they are. This hashtag goes in play
with our social media campaigns because that’s what Gen Z and Millennials
associate when seeing a hashtag #.
By advertising via streaming platforms such as YouTube and Hulu, we
could gain valuable knowledge about the viewers of our ads. See if our
efforts there are for lack of a better phrase, “pulling their weight in gold”.
Since we’re in the midst of the “cutting-the-cord” generation, more and
more cable subscribers are cancelling their subscriptions to utilize
streaming services such as Hulu and YouTube among others.
In conclusion, I don’t feel there is any reason for this to not be a feasible
and cost-efficient advertising plan. For most of the advertising costs to go
into the next generation, they could focus solely on social media. This will
start brand awareness in potential college students to recognize the brand
should it not be available in their hometown but suddenly is now easily
accessible. I believe this is the best way to remarket Kroger and focus on
the next gen more.
15.
16. Works Cited
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