Presentation to




  Chock full o’Nuts & Hills Bros.
2010 Promotion Recommendations
2010 Brand Planning


    • Brief overview of primary MZB coffee brands relative
    to their product life cycles

    • R...
2010 Brand Planning

Marketing Mix Considerations: Product Life Cycle
Canned coffee is considered to be a mature product c...
2010 Brand Planning

Canned Coffee: Share of Requirements
 Share of requirements for MZB brands is as much as half that
 o...
Brand Loyalty and Switching

Brand loyalty among canned coffee buyers

  Competitive Loyal                        Brand Lo...
Brand Loyalty and Switching

Brand loyalty among canned coffee buyers

  Competitive Loyal            Brand Switchers     ...
Brand Loyalty and Switching

Brand loyalty among canned coffee buyers

  Competitive Loyal            Brand Switchers     ...
2010 Brand Planning
Marketing Mix Considerations: Product Life Cycle
Products in a mature category typically employ a mark...
2010 Brand Planning

 Recommended Brand Objective

 • Defend/maintain share of canned coffee purchases
 Recommended Brand ...
2010 Brand Planning

  Marketing Mix Strategy Considerations
  – Advertising works to drive awareness and perception

  – ...
Marketing Mix
 Key Recommendation:

             Balanced Marketing Plan
        Advertising + Consumer Promotion


 Ratio...
2010 Brand Planning

                                 Tactical Considerations




In a world of limited resources, buildin...
2010 Brand Planning

                                 Tactical Considerations



                                         ...
2010 Brand Planning

                                      Tactical Considerations



Package                             ...
2010 Brand Planning
Tactical Considerations
– In-pack Bounce-back coupons provide a highly practical
 and efficient method...
2010 Brand Planning

  Discussion
  – Strategy

  – Tactics

  – Next Steps




    Mike Allen • 203-515-1267 • mike@spotl...
Addendum
MJB In-Pack Bounce-Back Coupon
– Shipped as blind in-pack Winter 2008
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  • Ucon presentation.key

    1. 1. Presentation to Chock full o’Nuts & Hills Bros. 2010 Promotion Recommendations
    2. 2. 2010 Brand Planning • Brief overview of primary MZB coffee brands relative to their product life cycles • Recommendation on the best way forward in terms of the best strategies and tactics for the brands
    3. 3. 2010 Brand Planning Marketing Mix Considerations: Product Life Cycle Canned coffee is considered to be a mature product category Product Life Cycle Stages Introduction Growth Maturity Decline Sales Low Sales Rapidly Rising Sales Leveling Sales Declining Sales Customers Innovators Early Adopters Middle Majority Laggards Competitors Few Growing Numbers Stable Numbers Declining Numbers Chock full o’Nuts Hills Bros. Coffee Maxwell House Folgers Source: P. Doyle, “The Realities of Product Life Cycles” Quarterly Review of Marketing
    4. 4. 2010 Brand Planning Canned Coffee: Share of Requirements Share of requirements for MZB brands is as much as half that of leading competitors. 60 Folgers - 55% 45 Maxwell House - 46% Chock full o’Nuts - 33% Hills Bros. - 27% 30 15 0 Share of Requirements
    5. 5. Brand Loyalty and Switching Brand loyalty among canned coffee buyers Competitive Loyal Brand Loyal CFON Hills Maxwell House Folgers
    6. 6. Brand Loyalty and Switching Brand loyalty among canned coffee buyers Competitive Loyal Brand Switchers Brand Loyal CFON Hills Maxwell House Folgers
    7. 7. Brand Loyalty and Switching Brand loyalty among canned coffee buyers Competitive Loyal Brand Switchers Brand Loyal CFON Hills Maxwell House Folgers 80%+ of canned coffee buyers are brand switchers
    8. 8. 2010 Brand Planning Marketing Mix Considerations: Product Life Cycle Products in a mature category typically employ a marketing mix that includes equal measures of advertising and promotion Product Life Cycle Stages Introduction Growth Maturity Decline Maximize Profit/ Marketing Create Product Maximize Market Reduce Defend Market Objectives Awareness & Trial Share Expenditures Share Marketing High High Moderate Low Expenditures Build awareness Build Awareness & Stress Brand Reduce to Level Advertising among early Trial in Mass Differences Needed to Retain adopters Market (more coffee, steel) Hardcore Loyals Reduce to Take Increase to Reduce to Level Sales Strong Support to Advantage of Encourage Brand Needed to Retain Promotion Drive Trial Heavy Consumer Switching Hardcore Loyals Demand Source: P. Kotler, “Marketing Management”, Kellogg School of Business, Northwestern University
    9. 9. 2010 Brand Planning Recommended Brand Objective • Defend/maintain share of canned coffee purchases Recommended Brand Strategy • Increase rate of sale among current MZB purchasers
    10. 10. 2010 Brand Planning Marketing Mix Strategy Considerations – Advertising works to drive awareness and perception – Promotions work to drive actions – A combination of advertising and promotions can provide the brands a complete, well-rounded marketing plan that would serve to achieve brand objectives
    11. 11. Marketing Mix Key Recommendation: Balanced Marketing Plan Advertising + Consumer Promotion Rationale: • Addresses current purchasers (increase rate of sale) • Drives consumer perception and action • Provides tangible incentive at the point of purchase 70% of purchase decisions made at point of purchase
    12. 12. 2010 Brand Planning Tactical Considerations In a world of limited resources, building a marketing plan that starts with the package and works out from there takes advantage of the 70% of consumer decisions being made at point of purchase.
    13. 13. 2010 Brand Planning Tactical Considerations Media Shelf Store • FSIs • Shelf Talkers • Circulars • Magazines • Tear Pads • Demos • Newspapers • Channel Strips • Shippers • Radio • Racks • Window Banners • TV • Coupon dispensers • Internet • Aisle Vision • NAM ShelfTalk • Outdoor • Insignia PoPs • In-store Radio • Direct Mail • Vestcom • Kiosks • Event Marketing In a world of limited resources, building a marketing plan that starts with the package and works out from there takes advantage of the 70% of consumer decisions being made at point of purchase.
    14. 14. 2010 Brand Planning Tactical Considerations Package Media • In-Pack Bounce Shelf Store • FSIs Back Coupons • Shelf Talkers • Circulars • Magazines • In-pack Instant • Tear Pads • Demos • Newspapers Win game • Channel Strips • Shippers • Radio • Racks • Window Banners • TV • In-pack premiums • Coupon dispensers • Aisle Vision • Internet • In-pack SLO offer • NAM ShelfTalk • Outdoor • Insignia PoPs • In-store Radio • Limited edition • Kiosks • Direct Mail labels • Vestcom • Event Marketing In a world of limited resources, building a marketing plan that starts with the package and works out from there takes advantage of the 70% of consumer decisions being made at point of purchase.
    15. 15. 2010 Brand Planning Tactical Considerations – In-pack Bounce-back coupons provide a highly practical and efficient method of increasing rate of sale with current purchasers of the brand – MJB In-back Bounce-back Coupons: Winter 2008 Strong Redemption Rates: - “Save $1.00 off Two” 6.92% - “Save $0.75 off Two” 6.76% - “Save $0.55 off Two” 4.22% Extremely Efficient on a Cost/Unit Moved: - “Save $1.00 off Two” $0.68 - “Save $0.75 off Two” $0.55 - “Save $0.55 off Two” $0.52 vs. - FSI “Save $0.55” $0.96 (See addendum for detail)
    16. 16. 2010 Brand Planning Discussion – Strategy – Tactics – Next Steps Mike Allen • 203-515-1267 • mike@spotlightmktg.com
    17. 17. Addendum MJB In-Pack Bounce-Back Coupon – Shipped as blind in-pack Winter 2008

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