Market Won Quaker True Delights Presentation


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Marketing plan done at University of LaVerne, winning the group challenge

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Market Won Quaker True Delights Presentation

  1. 1. <ul><li>Marketing Plan for Quaker True Delights </li></ul>
  2. 2. <ul><li>Market Won was formed on the basis of ethical professionalism aimed at responsibly representing our client’s goals and objectives. </li></ul><ul><li>Our goal is to provide effective strategies to the customer leading to successful marketing of products. </li></ul><ul><li>This will be accomplished utilizing intelligent methods of research applied with experience and creativity providing a service of unmatched value. </li></ul>
  3. 3. <ul><li>Increase Market Share </li></ul><ul><li>Overtake Competition </li></ul><ul><li>Increase Sales by 23% </li></ul><ul><li>To own the Term Gourmet Granola Bar </li></ul>
  4. 4. <ul><li>Age Gender </li></ul><ul><li> 25 25-45 46-65  65 Female Male </li></ul><ul><li>  Do you trust the Quaker brand? Would you eat a granola bar instead of a candy bar? </li></ul><ul><li>Yes No Yes No </li></ul><ul><li>Do you eat granola bars? Why do you buy a certain product? (circle all that apply) </li></ul><ul><li>Yes No Price Taste Value Nutritional Value </li></ul><ul><li>When? (circle all that apply) Of above, what’s the most important reason? </li></ul><ul><li>At Home At Work Price Taste Value Nutritional Value </li></ul><ul><li>At Play Traveling </li></ul><ul><li>Other </li></ul><ul><li>What is your current brand? </li></ul><ul><li>General Mills Kellogg Nature Valley Quaker Other </li></ul><ul><li>  </li></ul><ul><li>Did you enjoy your “True Delight” enough to purchase? Yes No </li></ul><ul><li>  Did you like it better than your usual brand? Yes No </li></ul><ul><li>  Would you pay a little more for a ‘true delight’? Yes No </li></ul><ul><li>  </li></ul>
  5. 5. <ul><li>Preliminary Quantitative Analysis </li></ul><ul><ul><li>Surveyed: 146 men, women, and children </li></ul></ul><ul><ul><li>Victor Valley of the County of San Bernardino, CA </li></ul></ul><ul><ul><li>Ages 12 – 65+ </li></ul></ul>
  6. 6. <ul><li>When do you eat granola bars? </li></ul><ul><ul><li>Home consumption, 76% </li></ul></ul><ul><ul><li>While at play, 36% </li></ul></ul><ul><ul><li>While at work, 74% </li></ul></ul><ul><ul><li>While traveling, 62% </li></ul></ul><ul><li>Working Women on the go, ages 25 - 65 </li></ul>
  7. 7. <ul><li>Do you enjoy it over your usual brand? </li></ul><ul><ul><li>53% Overall responded YES </li></ul></ul><ul><ul><li>Target Market </li></ul></ul><ul><ul><ul><li>Women 25 – 45, 71% </li></ul></ul></ul><ul><ul><ul><li>46 – 65, 68% </li></ul></ul></ul>
  8. 8. <ul><li>Would you choose a granola bar over a candy bar? </li></ul><ul><li>- Overall 77% </li></ul><ul><li>- Target Market 86% </li></ul>
  9. 9. <ul><li>Would you pay more for True Delights? </li></ul><ul><ul><li>Overall 45% </li></ul></ul><ul><ul><li>Target Market 75% </li></ul></ul>
  10. 10. <ul><li>Qualifying Dimensions, Preliminary Customer Types </li></ul><ul><ul><li>Working Women Age 25 – 45 </li></ul></ul><ul><ul><li>Working Women Age 46 – 65 </li></ul></ul>
  11. 11. <ul><li>Granola Bar Market (2008) </li></ul><ul><ul><li>General Mills – Industry leader, 38% market share </li></ul></ul><ul><ul><li>Quaker Oats – 31% </li></ul></ul><ul><ul><li>Kellogg’s – 11% market share </li></ul></ul><ul><ul><li>McKee Foods -4% </li></ul></ul><ul><ul><li>Private – 9% </li></ul></ul><ul><ul><li>Other – 7% </li></ul></ul><ul><li>Prospective Competitors </li></ul><ul><ul><li>All other current granola/snack bar manufacturers </li></ul></ul><ul><ul><li>New companies </li></ul></ul><ul><ul><li>Healthy category </li></ul></ul>
  12. 13. <ul><li>Market Structure </li></ul><ul><ul><li>Many varieties offered, multiple ingredients </li></ul></ul><ul><ul><li>Transformation </li></ul></ul><ul><ul><li>Niche markets </li></ul></ul><ul><ul><li>Market entry </li></ul></ul><ul><li>Monopolistic </li></ul><ul><ul><li>Top two companies hold 69% of market share </li></ul></ul><ul><ul><li>Compete filling specific demands </li></ul></ul><ul><ul><li>Niche market pricing </li></ul></ul>
  13. 14. <ul><li>Competitive Barriers </li></ul><ul><ul><li>Customer Loyalty </li></ul></ul><ul><ul><li>Brand Recognition </li></ul></ul><ul><ul><li>International Market Sales </li></ul></ul>
  14. 15. <ul><ul><li>PepsiCo’s Profit Margin 53%, Annual Income $43 Billion </li></ul></ul><ul><ul><li>General Mills’ Profit Margin 32%, Annual Income $14 Billion </li></ul></ul><ul><ul><li>Kellogg's Profit Margin 42%, Annual Income $13 Billion </li></ul></ul><ul><ul><li>PepsiCo’s Foreign Sales Market At 48% </li></ul></ul><ul><ul><li>Purchasing Power/Distribution </li></ul></ul>
  15. 16. <ul><li>Quaker Man Has Been Branding Icon For Over Century </li></ul><ul><li>Quaker Has A Long Line Of Firsts </li></ul><ul><li>Continuing The Legacy, We Will Present The True Delights Granola Bars As THE Gourmet Granola Bar </li></ul>
  16. 17. <ul><li>Strengths </li></ul><ul><ul><li>PepsiCo Provides Access To Worldwide Resources </li></ul></ul><ul><ul><li>“ Super Grain” Qualities Of The Whole Grain Oat </li></ul></ul><ul><ul><li>Well Recognized Branding </li></ul></ul><ul><ul><li>Market Strength </li></ul></ul>
  17. 18. <ul><li>Weakness </li></ul><ul><ul><li>Mass Re-Branding In 2009 For PepsiCo </li></ul></ul><ul><ul><li>Consolidation Of Quaker Under One Focus </li></ul></ul><ul><li>Opportunities </li></ul><ul><ul><li>Establish New Product/Market </li></ul></ul><ul><ul><li>Reposition Quaker To Lead The Granola Bar Market </li></ul></ul><ul><ul><li>Expand Into Foreign Markets </li></ul></ul><ul><ul><li>Gourmet Category </li></ul></ul>
  18. 19. <ul><li>Threats </li></ul><ul><ul><li>Concentrated In North America </li></ul></ul><ul><ul><ul><li>U.S., Canada, and Mexico </li></ul></ul></ul><ul><ul><ul><li>70% of revenues generated in this region </li></ul></ul></ul><ul><ul><li>Economic Recession Bring Uncertainty </li></ul></ul><ul><ul><li>Competition From General Mills And Kellogg </li></ul></ul><ul><ul><ul><li>Similar strategies </li></ul></ul></ul><ul><ul><li>Me Too’s </li></ul></ul>
  19. 20. <ul><li>Further Quantitative Research </li></ul><ul><ul><li>More comprehensive quantitative analysis in multiple areas of the United States </li></ul></ul><ul><ul><ul><li>Victor Valley – median household income $64,000 </li></ul></ul></ul><ul><ul><ul><li>Median household income over $100,000 </li></ul></ul></ul><ul><ul><li>- More precisely define the age range of target market </li></ul></ul>
  20. 21. <ul><li>Further Quantitative Research </li></ul><ul><ul><li>At least 1,000 people from each age and gender bracket from each geographic region selected </li></ul></ul><ul><ul><li>Include income ranges </li></ul></ul><ul><ul><li>Include price points to determine break point </li></ul></ul>
  21. 22. <ul><li>Qualitative Analysis To Conduct </li></ul><ul><ul><li>Focus groups including our target market and others determined as viable by our research </li></ul></ul><ul><ul><li>This would allow us to create a profile of potential consumers including such aspects as income, hobbies, daily lives, and habits. </li></ul></ul>
  22. 23. <ul><li>Qualitative Analysis To Conduct </li></ul><ul><ul><li>Critique the product for comments and improvements </li></ul></ul><ul><ul><ul><li>Likes and Dislikes of product </li></ul></ul></ul><ul><ul><li>Upon completion we will provide the correct marketing mix needed to achieve profitable sales of “True Delights” gourmet granola bars </li></ul></ul>
  23. 25. <ul><li>Product </li></ul><ul><ul><li>Gourmet Granola Bars </li></ul></ul><ul><ul><li>Quaker to “own” the term Gourmet Granola Bar </li></ul></ul><ul><ul><li>Packaging stands out </li></ul></ul><ul><ul><li>Premium Ingredients </li></ul></ul><ul><ul><li>Increased Consumer Value </li></ul></ul>
  24. 26. <ul><li>Place </li></ul><ul><ul><li>Selective Upper-End Grocery Chains and Retail Outlets </li></ul></ul><ul><ul><li>Granola/Snack Bar Aisle </li></ul></ul><ul><ul><li>Eye level of target market </li></ul></ul><ul><ul><li>Individual Bar Sales </li></ul></ul><ul><ul><li>Granola bar preference </li></ul></ul><ul><ul><li>Facilitate Impulse shopping </li></ul></ul>
  25. 27. <ul><li>Promotion </li></ul><ul><ul><li>Inform of True Delights </li></ul></ul><ul><ul><li>Persuade Purchasing </li></ul></ul><ul><ul><li>Reinforce Quaker Branding </li></ul></ul><ul><ul><li>Promotion Blend </li></ul></ul><ul><ul><ul><li>Advertising </li></ul></ul></ul><ul><ul><ul><li>Sales Promotion </li></ul></ul></ul><ul><ul><ul><li>Direct Sales </li></ul></ul></ul><ul><ul><ul><li>Keyword search acquisition </li></ul></ul></ul>
  26. 28. <ul><li>Price </li></ul><ul><ul><li>Substitution Threats, Price Selection, Value </li></ul></ul><ul><ul><li>True Delights Consumer </li></ul></ul><ul><ul><ul><li>Willing to pay more for quality </li></ul></ul></ul><ul><ul><ul><li>Willing to pay more for prestige </li></ul></ul></ul><ul><ul><ul><li>Willing to pay our price – elasticity </li></ul></ul></ul>
  27. 29. <ul><li>Recommendations & Objectives </li></ul><ul><ul><li>True Delights the standard in Gourmet granola bars </li></ul></ul><ul><ul><li>Increase Quaker’s granola bar market share </li></ul></ul><ul><ul><ul><li>Overtake General Mills </li></ul></ul></ul><ul><ul><li>“ What’s Your True Delights?” Campaign </li></ul></ul><ul><ul><li>Reinforce Quaker Branding, “Go Humans go” </li></ul></ul>
  28. 30. <ul><li>Recommendations & Objectives </li></ul><ul><ul><li>Tactical Campaign </li></ul></ul><ul><ul><ul><li>Market Exposure: Television and Print </li></ul></ul></ul><ul><ul><li>Check stand point of purchase sales </li></ul></ul>
  29. 31. <ul><li>Print Advertising </li></ul><ul><ul><li>Full page, four-color ads </li></ul></ul><ul><ul><li>3 consecutive months, July 2009 – Sept 2009 </li></ul></ul><ul><ul><li>Magazines </li></ul></ul><ul><ul><ul><li>Women’s Day - 55% of their readers are between the ages of 25-54, with a median age of 50 </li></ul></ul></ul><ul><ul><ul><li>Women’s Health - 83% of their readers are between the ages of 18-49, with a median age of 36 </li></ul></ul></ul><ul><ul><ul><li>Fitness - 46% of their readers are between the ages of 18-34, with a median age of 37 </li></ul></ul></ul><ul><ul><li>Reader & Circulation Statistics </li></ul></ul>
  30. 32. <ul><li>Television Advertising </li></ul><ul><ul><li>DirecTV, 22 million subscribers, best consumer value </li></ul></ul><ul><ul><li>“ Women’s” Programming Cluster </li></ul></ul><ul><ul><ul><li>2 – 3 week ad blast </li></ul></ul></ul><ul><ul><ul><li>150 spots per 2 week period </li></ul></ul></ul><ul><ul><ul><li>$100,000 per week </li></ul></ul></ul><ul><ul><li>Secondary “Kids” Programming cluster </li></ul></ul><ul><ul><ul><li>Parental Program Monitoring </li></ul></ul></ul><ul><ul><ul><li>Similar costs as “Women’s” cluster </li></ul></ul></ul>
  31. 33. <ul><li>Print advertising </li></ul><ul><ul><li>Ad Costs </li></ul></ul><ul><ul><ul><li>Women’s Day: $252,390 </li></ul></ul></ul><ul><ul><ul><li>Women’s Health: $138,075 </li></ul></ul></ul><ul><ul><ul><li>Fitness: $138,200 </li></ul></ul></ul><ul><ul><ul><li>Total Cost: $528,665 </li></ul></ul></ul>
  32. 34. <ul><li>Planned Budget Costs </li></ul><ul><ul><li>Television: $600,000 </li></ul></ul><ul><ul><li>Commercial Production: $75,000 </li></ul></ul><ul><ul><li>Print: $528,665 </li></ul></ul><ul><ul><ul><li>Production: $17,000 </li></ul></ul></ul><ul><ul><li>Market Won Costs: $210,000 </li></ul></ul><ul><ul><ul><li>Based on estimates for 3 completed months service </li></ul></ul></ul><ul><ul><li>Total Costs: $1,430,665 </li></ul></ul>
  33. 35. <ul><li>Estimated Return on Investment </li></ul><ul><ul><li>Based on PepsiCo’s Current Financial Status </li></ul></ul><ul><ul><ul><li>Quarter Ending March 31, 2009 </li></ul></ul></ul><ul><ul><ul><li>PepsiCo: 19.1% </li></ul></ul></ul><ul><ul><ul><li>PepsiCo: 5 year average – 21.2% </li></ul></ul></ul><ul><ul><li>Estimated Quaker ROI of 23% </li></ul></ul>
  34. 36. <ul><li>Television Commercial </li></ul>
  35. 37. <ul><li>Increase market share to reposition Quaker to lead $883 million industry </li></ul><ul><li>Market product so that target market wants to indulge in the experience </li></ul><ul><li>Own the term gourmet granola bars </li></ul>