3. ▪ Zak Meyer
▪ Katheryn Conley
▪ Max Bohnson
▪ Nathan Wilson
▪ Mahmoud Alsaif
By
4. EXECUTIVE SUMMARY
▪ Started in 1994 by Erin Baker alone
▪ Currently has about 50 employees
▪ Produces two main products: The Original Breakfast Cookie and granola
▪ Produces 6,500 breakfast cookies per day
▪ Made with no preservatives and last 105 days
▪ Produces 1,500 bags of granola per shift
▪ Main distributors located in the northwest, southwest, and midwest
▪ Uses non-traditional advertising such as social media
▪ Competitors are bars such as clif, and baked goods
5. Erin Baker Owner
• Started by renting a 4-H kitchen at Whidbey Island Fairgrounds in
1994
•Started distributing cookies using a blue Schwinn
•Her dream was to reduce child obesity by 50% in the U.S. by
promoting wholesome, nutritious ingredients
•The face of the company
7. OBJECTIVE: PREPARING MARKETING PLAN FOR
BREAKFAST COOKIE
▪ Step 1: Collecting Data by conducting surveys
▪ Step 2: Analyzing The Data we collected
▪ Step 3: presenting the results brief eloquent way
14. STEP 2: ANALYZING THE DATA WE COLLECTED &
STEP 3: PRESENTING THE RESULTS BRIEF ELOQUENT WAY
▪ Breakfast cookie wishlist obtained by target customers
15. • how can the packaging be improved?
• What do people think of Erin Baker’s cookie package?
23. TARGET MARKET
0%
20%
40%
60%
80%
100%
120%
Yes No
Respondents Who Tried Erin Baker’s
Breakfast Cookies Segmented By Education
Level
college graduate
some college
High School/ GED
0%
20%
40%
60%
80%
100%
120%
Yes No
Respondents Who Tried Erin Baker’s Breakfast
Cookies Segmented By Avg. Yearly Income
$60,000-120000
$30,000-60,000
under $30,000
0%
20%
40%
60%
80%
100%
120%
Yes No
Respondents Who Tried Erin Baker’s
Breakfast Cookies Segmented By Gender
Female
Male
24. HOW MANY HAVE TRIED A BREAKFAST COOKIE IN
YOUR HOUSEHOLD ?
0
4
8
12
16
0 1 2 3 4 5
numberofhouseholds
Number of household members
25. WHAT BRAND OF BREAKFAST COOKIE HAVE YOU TRIED?
0 3 6 9 12 15
Erin Bakers
Nature Valley
Barbara’s
Didn’t Know
27. HOW LONG ARE YOU WILLING TO WAIT UNTIL THE ORDER SHIPPED
&
HOW LONG WAIT TILL ORDER RECEIVED
0 4 8 12 16 20
0
1-2 days
3-7 days
7
1-2 weeks
How long wait till order shipped
How long wait till order received
28. ARE YOU INTERESTED IN RECEIVING UPDATES? IF
SO ON WHICH PLATFORM?
0
6
12
18
24
30
no yes
Interest in receiving updates
0 1 2 3 4 5
Facebook
Instagram
Twitter
Yes, social media platform
29. ARE YOU WILLING TO CONTACT THE COMPANY IN CASE OF A PROBLEM? IF SO HOW?
0
2.25
4.5
6.75
9
11.25
Email Phone Social media In person
Of the 19 respondents willing to contact the company. Preferred methode?
31. OUTREACH
• Erin Baker’s donates 10,000 cookies per month to
children all over the United States who are in need of a
healthier breakfast through the 1 million kids program.
• Social media
35. PRICE
Price:
Customers would be willing to pay as much as $1.50 per cookie
and as much as $5.00 per box, with Erin Baker’s current prices
at $0.73 to $0.97 per cookie and $5.75 per box they have
already established very competitive prices in both the cookie,
and energy bar markets.
(We suggest that a price between $1 - $2)
37. TARGET MARKET
▪ Based on our surveys, consumers would like to have a cookie that has the following
attributes:
▪ Healthy and nutritious, low in sugar
▪ Easy to grab-on-the-go
▪ Readily available at retail outlets
▪ Better taste or texture
▪ Stronger retail presence
39. BRAND PRINCIPLE
“Erin Baker’s is dedicated to baking with simple, all natural, whole food
ingredients for life on the go”(Erin Baker’s website)
40. BRAND RECOGNITION
• According to the survey data, 60% said they recognized the Erin
Baker’s breakfast cookie brand.
• 40% did not recognize the Erin Baker’s brand.
yes no
41. BRAND PERSONALITY
• Sincerity
• From humble beginnings
• Wholesome
• Community-oriented and giving
• Ruggedness
• “For the athlete in all of us”(Erin Baker class)
• Outdoorsy
• For life on the go!
42. BRAND ASSOCIATION
• Word of mouth publicity
• In-store advertisements
• Social media such as twitter, facebook
• High-quality, wholegrain, natural ingredients
• Non-GMO commitment and no preservatives
• Expensive compared to competitor products, luxury good
• Local roots as small business in small city
43. BUDGET
During our visit to Erin Baker’s Wholesome
Baked Goods on January 28th, 2016, we asked
CEO Rob McCormack for details about the
budget. Unfortunately he refused to share this
with us, only stating it was “a lot”(Rob
McCormack.
45. ERIN BAKER’S
SWOT
ANALYSIS
Strengths Weaknesses
Unique product carrying a strong customer
loyalty with a recognizable brand name in areas
of distribution.
The small size of the company and a new cutting
edge manufacturing facility allow for flexibility in
how the product is made and internal focus.
Fast turnover of product means limited storage
capital investments and higher sales.
Large growing market for on-the-go breakfast
food.
Strong corporate brand and culture including
charitable aspects.
Small distribution because of the logistical
problem of short shelf life
Not able to work with large national retailers
(Target, Wal-Mart, Costco, etc.) combined with low
national brand recognition constrains size.
Small budget to spend on national advertising
An inelastic good with high cost to manufacture
cause small margins
Opportunities Threats
Growth in millennial buying power
Ingredients inline with millennial ideals
Room to increase social media presence
Become more transparent about ingredients and
all natural practices
Partnership with a coffee distributor (Starbucks,
Tully’s, etc.)
Substitute products
Price fluctuation from using higher quality
ingredients and Food safety and the threat of
Recall
Cheaper generic or Imation products
Decline in breakfast sales
46. STRENGTHS
Unique product carrying a strong customer loyalty with a recognizable brand name in
areas of distribution.
▪ The breakfast cookie is unique product with few direct matching competitors creating a
niche market.
▪ Identifiable as health food brand
▪ According to Mintel market research firm two thirds of survey respondents requested healthy
breakfast items (Russell, 2011).
Large growing market for on-the-go breakfast food
▪ The breakfast cookie is part of a new trend of people eating more breakfast, 2.6% rise in
2011 (Russell, 2011), with less time.
▪ The breakfast bar industry is currently a $1.6 billion dollar industry (Reyes, 2003).
▪ Estimated in 2011 31 million American’s didn’t eat breakfast (“31 million,” 2011).
▪ Reasons given weren’t hungry or didn’t feel like eating or drinking they didn’t have time and
were too busy (“31 million,” 2011).
47. OPPORTUNITIES
Partnership with a coffee distributor (Starbucks, Tully’s, etc.)
▪ Coffee main component of breakfast menu (Russell, 2011)
▪ Customers come back later in the day to buy substantial foods (Russell, 2011)
▪ Easy distribution in small quantities over a region.
▪ Gain brand recognition
▪ Starbucks food revenue increased 20% over last year. (Kell, 2016)
Room to increase social media presence
▪ Currently operate a twitter, Instagram (recently added), Facebook, blog, and website
▪ According to Duggan, Ellison, Lampe, Lenhart, Madden (2015) In 2014 people 18-29, 87% on Facebook, 53% Instagram,
Pinterest 34%, Twitter 37%
▪ “A successful social media campaign will increase the exposure and awareness of a brand and create more buzz on social
media sites, which will lead to a greater probability of a product being chosen by consumers.” (Liu & Lopez, 2014)
▪ “For example, after the Coca-Cola Company initiated its “Share A Coke” social media campaign on Facebook in 2011, which gave
people the chance to order personalized Coke bottles through a Facebook app, the traffic on the Coke Facebook site increased by
870 %. This noteworthy social media campaign earned a total of more than 18 million media impressions and led to a 7 % increase in
sales” (Moth, 2013)
48. WEAKNESSES
Not able to work with large national retailers (Target, Wal-Mart, Costco, etc.) combined with low
national brand recognition constrains size.
▪ Not working with major retailers such as Target and Wal-Mart
▪ Cannot achieve large-scale distribution that leads to nationwide brand recognition.
▪ Limits their growth and size.
Small budget to spend on national advertising
▪ Small marketing budget, less than a one million dollars (Reyes, 2003) a year limits their ability to do
traditional national marketing plans.
▪ Unable to gain foothold in local and national retail stores.
▪ According to Grigsby-Toussaint, Moise, Greiger (2011) in a 2008 cross-sectional survey of 118 food stores
conducted in four Midwestern cities in the United States revealed 82% of food stores surveyed carried
products marketed to kids via the internet or TV. 76.9% of those stores carried fruit and cereal bars
marketed via the Internet and TV .
▪ Unable to build brand recognition and preference.
49. THREATS
Substitute products
▪ The breakfast bars easily substitute breakfast cookies.
▪ Cookies costing $1.67 are easily substitutes by cheaper brands with greater share of the
breakfast bar market.
Price fluctuation from using higher quality ingredients and Food safety and the threat of
Recall
▪ Using higher quality non-processed inputs causes prices to change depending on various
environmental factors (weather, yield, production)
▪ According to Boriss, Brunke and Kreith (2006) Plum production is highly variable…. Price
fluctuation is attributed to changed in production
▪ 2010 peanut recall saw Erin Baker’s lose $200,000 in 36 hours (Rubin, 2011)
▪ Average cost to recall for a food company is $10 million in direct cost (“Recall,” 2014)
▪ Brand damages and lost sales are the other costs of a recall (“Recall”, 2014)
51. CONCLUSION
We recommend that Erin Baker…
Packaging:
• Emphasize all of the healthy ingredients by clearly stating them on the package
• Make compostable packages
• Make Re-sealable package
Price:
• Keep the price of the breakfast cookie in the $1 - $2 range
• Bulk packages discounts
Promotion:
• continue focusing on in-store advertising
• Broad advertising campaign that is not directed towards one specific group
Target Market:
• Focus Marketing effort towards…
• Males
• College Graduates and people with a high school diploma or GED
• People making and Average yearly income of over $30,000
52. Feedback:
• Hotline for customer service
• Quick response email service
RECOMMENDATION
Distribution:
• Shorter time of delivery after cookies are ready
• Focus more on distributing their cookies to retail and discount stores (like
grocery outlets, Cash & Carry, Winco…etc)
53. CITATIONS
2016 Wild Backpacker. (2016). Comparing Energy Bars. Retrieved February 28, 2016, from
http://www.wildbackpacker.com/backpacking-food/articles/comparing-energy-bars/
31 million U.S. consumers skip break each day. (2011). Retrieved from The NPD Group:
https://www.npd.com/wps/portal/npd/us/news/press-releases/pr_111011b/
The Best Supermarkets In The Country, As Ranked By 'Consumer Reports' Huffpost Taste. (2014, December 14). The Best
Supermarkets In The Country, As Ranked By 'Consumer Reports' Huffpost Taste. Retrieved from TheHuffingtonPost.com:
http://www.huffingtonpost.com/2012/04/02/best-supermarkets_n_1398053.html
Boriss, H., Brunke. H., & Kreith, M. (2006). Commodity profile: Plums, fresh market. Retrieved from Agricultural Resource Center,
University of California-Davis: http://aic.ucdavis.edu/profiles/PlumsFresh-2006.pdf
Clif Bar and Company. (2014). Clif Bar Minis. Retrieved February 29, 2016, from http://www.clifbar.com
Duggan, M., Ellison, N. B., Lampe, C., Lenhart, A., & Madden, M. (2015, January 09). Demographics of Key Social Networking
Platforms. Retrieved March 02, 2016, from http://www.pewinternet.org/2015/01/09/demographics-of-key-social-networking-
platforms-2/#
Eat Natural case study. (2008). Eat Natural Case Study: Establishing a Brand in the Breakfast Cereal & Cereal Bar Markets, 1-10
Erin Baker's Wholesome Baked Goods. (2016). Erin Baker's. Retrieved February 28, 2016, from http://erinbakers.com
Global Breakfast Cereals Industry Profile. (2015). Breakfast Cereals Industry Profile: Global, 1-33.
Grigsby-Toussaint, D. S., Moise, I. K. and Geiger, S. D. (2011), Observations of Marketing on Food Packaging Targeted to Youth in
Retail Food Stores. Obesity, 19: 1898–1900. doi: 10.1038/oby.2011.120
RUSSELL, B. C. (2011). Wake up: TO BREAKFAST POTENTIAL. Specialty Coffee Retailer, 18(9), 24-26.
Hirschfield, M. (2007, December). Product of the Week: Erin Baker's Breakfast Cookie. Retrieved March 01, 2016, from
http://www.motherearthliving.com/home-products/erin-bakers-breakfast-cookie.aspx
Hoffman, B. (2012, September 4). How 'Millennials' Are Changing Food as We Know It. Forbes. Retrieved January 28, 2016, from
http://www.forbes.com/sites/bethhoffman/2012/09/04/how-millenials-are-changing-food-as-we-know-it/#420ccc35339d
Kell, J. (2016, January 22). The Surprising Reason Starbucks' Sales Jumped. Retrieved March 02, 2016, from
http://fortune.com/2016/01/22/starbucks-food-sales-rising/
54. CITATIONS
KIND LLC. (2014). KND Breakfast Bars. Retrieved February 28, 2016, from http://www.kindsnacks.com/store/types/kind-
breakfast-bars
Kurtz, D. L. (2014). Contemporary Marketing (17th ed.). Boston, Massachusetts: Cengage Learning.
Liu, Y., & Lopez, R. A. (2014). The impact of social media conversations on consumer brand choices. Marketing Letters Mark Lett,
27(1), 1-13. Retrieved March 2, 2016.
McCormack, R. (2016, January 28). Erin Baker’s Marketing Class Tour. Speech presented at Marketing 380 Business Tour in Erin
Baker's Wholesome Baked Goods, Bellingham.
Moth, D. (2013, August 5). 10 inspiring digital marketing campaigns from Coca-Cola. Retrieved March 02, 2016, from
https://econsultancy.com/blog/63175-10-inspiring-digital-marketing-campaigns-from-coca-cola
“Recall Execution Effectiveness: Collaborative Approaches to Improving Consumer Safety and Confidence,” Deloitte on behalf of
the Food Marketing Institute (“FMI”), the Grocery Manufacturers Association (“GMA”), and GS1 U.S., June 2010
Recall: The food industry’s biggest threat to profitability. (2012). Retrieved from Tyco Integrated security:
https://www.tycois.com/wps/wcm/connect/ab4fd1f4-4aa2-45a3-a4f1-b91b36539e0f/LT1000-
02FoodDefenseWP_Part2_hireresDigital.pdf?MOD=AJPERES
Redondo, M. R., . . . Rivas, T. (2009). Difference in the breakfast habits of overweight/obese and normal weight
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Reyes, S. (2003). Baker's Seeks Oreo Status. Brandweek, 44(2), 8.
Rubin, C. (2011, May 09). In the Business of Ignoring Diet Fads. Retrieved March 02, 2016, from
http://www.inc.com/articles/201105/small-business-success-stories-erin-bakers-wholesome-baked-goods.html
Snyder, B. (2016, February 25). Millennials Think Eating Cereal Is Way Too Difficult. Retrieved February 26, 2016, from
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