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Marketing Plan for the:
Cooking Channel
Presented by Kathleen Curtin and Jennifer Hoffmann
NYU Stern Langone Program
For Professor Michelle Greenwald: Advanced Marketing
Planning and Strategy, Spring 2010
_______________
Industry Overview/Trends
Major Players in Cable Television
2008 Revenues
$183 billion
$37.8 billion
$33 billion
$29.8 billion
$14.6 billion
$14 billion
$4.38 billion
$1 billion
$2 billion
Networks
Top 25 Cable Programming Networks
* National Cable and Telecommunications Association
Top 3 Reality Programs, Adults 18-49
Industry Trends
Cable winning over Broadband
• 1010 hours per year in 2007 vs 886 hours in 2003 (cable & satellite viewing)
• Same period: Broadcast TV fell from 729 to 676 hours
Ad supported cable networks held 56% share of primetime viewers, compared to
41.8% share for broadcast (2007) [p13 if we want more]
Networks actively seek out new talent
Food Network: 6% of audience is Hispanic
1.3 billion subscribers
•Satellite and VOD
services have shown
the largest subscriber
growth in recent history.
• 31 million subscribers
with video-on-demand
services
•Trend is migration
from basic to digital and
satellite.
* IBISWorld
Market Structure Chart
Cable Television
Movies Scripted
Dramas &
Sitcoms
News Family Lifestyle Documentary
Women’s
networks
Home
improvement
Music &
Celebrity
Cooking &
Travel
Men’s
networks
Sports
Nature
Lifetime
O!
We
TLC
DIY
HGTV
MTV
VH1
Bravo
Food
Network
Fine Living
Travel
Channel
Cooking
Channel
Spike
Outdoor
Channel
Discovery
Planet Green
Nat Geo
Industry Trends
Increasing competition due to increased desire for diverse programming that
reaches niche markets (amount of spending on programming has quadruled
since 1996)
Distributors also demanding more lifestyle, family and educational programming
0
5
10
15
20
25
1996 2001 2004 2007
Spending (in billions)
* IBISWorld, Spending on TV Programming
“The once quirky and
small-time food
entertainment field has
morphed into a big
business.”
– The Wall Street Journal, 6 Mar 2010
Industry Size & Growth Forcast
Total Cable Industry: $41.5 billion
$26.6 billion in ad revenue
-3
-2
-1
0
1
2
3
4
5
6
2006 2007 2008 2009 2010
Real Revenue Growth Rate
Real revenue
growth declining
for cable
industry
* IBISWorld, Revenue Growth Rate for the Cable Industry
Real industry revenue is forecast to
increase at a rate of 3.4% annually over
the next 5 years until 2014 (IBIS World)
• Expanded number of channels
• Continued shift to digital & satellite
• Increased demand for programming and
new channels
Advertising Revenues
Top national TV
advertisers:
• Beauty and household
• Auto
• Pharmaceuticals
• Telecom
(First Research, Industry Profile TV,
Cable ,Pay and Broadcast Networks
– 21 Dec 2009)
* National Cable and Telecommunications Association
National and regional advertising accounts for 45% of revenue
_______________
Key Competitors
Performance of Scripps and most
relevant competitors
Key Competitors Performance: Ratings
Food Network:
Possible comparison of ratings: NBC at 1.5, USA at 1.2 or 1.3; NBC average
season-to-date rating in 18-49 year olds is 2.6 through Feb 6
Lifetime: Big ratings decline; ended 2009 down 20% among viewers and 17%
among 18-49 year olds (vs. 2008)
History Channel: ended 2009 with ratings up 3% over 2008
2009, Daily Variety (28 Dec 2009)
Food Network total viewers grew 26%, same in adults 18-49
TLC grew 18% in total viewers and 13% in adults 18-49
Top three reality programs with adults 18-49: Deadliest Catch, Project Runway,
Top Chef
Other networks also up double digits in adults 18-49: BET, TruTV, Travel Channel,
Animal Planet, Lifetime Movie Network, Nat Geo, Versus and SoapNet
Scripps Networks
• Market share: 3.8%
• 4Q ad revenues rose 7% to $281 million, compared to Time Warner and Viacom
showing a 4% ad-sales drop for the same period (Broadcasting & Cable, 22 Feb
2010)
• Total TV ad revenue in 2009 for its cable networks: $1 billion
• Seeing advertisers shift to more specialty networks
• Rates running 20% higher than upfront
• Carriage fees: estimated to receive about $0.08 per subscriber/month for Food
Network and $0.13 per subscriber/month for HGTV; Scripps negotiated this up,
likely (Multichannel News, 10 Feb)
Food Network
“Way more than cooking” “A unique lifestyle network that strives to be way more than
cooking. The network is committed to exploring new and different ways to approach
food.”
Cast a wide net on the hobby of food – explore through:
• Travel
• Competition
• Pop culture
• Adventure
• Technique
Make cuisine accessible to the home cook
Pioneer in food programming – launched in 1993 &
Distributed to more than 96 million U.S. households
Ratings among 25-to-54 year olds has grown 54% since 2004* January: Food Network
ratings rose 28% to an average of 1.3 million viewers**
The Travel Channel
Entered 2009-10 upfront season:
• Increased upscale audience delivery 40%
year-on-year with adults 25-54 and 18-49
• Moved median age down 5 years to 45
• Reach, frequency and duration of viewing up
10% in primetime with 25-54 age bracket
95 million subscribers (Nielsen estimate, Aug.
2009)
Desire to grow the channel internationally and
improve positioning on the web
Touts unique perspectives on travel, website
“hub”, and mobile platform
Key Competitor: Discovery Comms
Properties include TLC, Animal Planet, Discovery
Health, etc (find all properties and include logos)
Market share: 5.3%
For first 9 months of fy2009, US networks revenue rose
4% to $1.6 billion
For fy2008, us networks revenue rose 10% to $2 billion,
ad revenue rose 9% to $975 million (ibisworld data)
TLC: BBQ Pitmasters – changing to competition format;
averaged 900,000 total viewers and posted double digit
increases for the network among male viewers during
first season (Multichannel News, 15 March 2010)
Discovery & TLC
TLC:
Focus on international expansion
“Female-driven” franchise
Discovery:
Empowers people to explore their world
Bravo NBC
“Delivers the best in food, fashion, beauty, design and
pop culture to the most engaged, upscale and
educated audience in cable” – bravo.com
Focus on upscale market, breakout stars and critical
acclaim for its shows
“On-air, online and on-the-go”
BBC America
“Pushes the boundaries” to deliver high quality, highly
addictive programming
For viewers who demand more
“Cool Britannia”
_______________
Smartest and Dumbest
Marketing Tactics
Historical view of best and worst
marketing examples
Smartest Marketing: Building Buzz
Smartest Marketing: Building Buzz
The Blair Witch Project was released on July 30,
1999
One of the most profitable films of all time – took
in $28.5m in its first week, on an initial budget of
$25k
Went on to gross $248m worldwide
Blair Witch website listed by Nielsen NetRatings
as the 45th
most visited location for the week
ending August 1 1999 – average visit of 16
minutes
Considered one of the first movies to be largely
marketed on the web
Source: e-strategy.com & wikipedia.org
Smartest Marketing: Building Buzz
During the Cannes Film Festival, filmmakers mounted small posters
styled to look like they were about real events:
Source: www.mischiefmarketing.com
Smartest Marketing: Building Buzz
Filmmakers built a site with an interactive timeline and back story to
create buzz with a compelling tale
Source: e-strategy.com
Smartest Marketing: Creative Tie-In
Smartest Marketing: Creative Tie-In
HBO series True Blood marketed its second
season 2009 through “fake ads” created in
conjunction with major consumer brands
Ads appeared online, but also in traditional
media like magazines and billboards
Second season opened as HBO’s most watched
program since The Sopranos finale
“A key element to the show is that vampires live
among us. We've extended that idea to cross over
and bend reality to target vampires with faux special
vampire products.“
-- Zach Enterlin, HBO's vice president, advertising and
promotions
"This is a very cool, sexy, powerful brand. It's
youthful and powerful and has attitude and strength.
That's really a great partner for a brand like ours."
-- Dino Bernacchi, Harley-Davidson's director,
advertising, promotions and entertainment Source: USA Today; variety.com
Smartest Marketing: Creative Tie-In
Smartest Marketing: Creative Tie-In
Source: creativity-online.com; Media Post online
Dumbest Marketing: Terrorism
Source: marketwatch.com; Daily Variety; boston.com
In Jan 2007, Cartoon Network plants devices
containing “magnetic lights” to promote its Adult
Swim show “Aqua Teen Hunger Force”, causing
a shutdown of major roadways and subway lines
in Boston, Mass.
Executive VP and general manager Jim
Samples resigns in early February in recognition
of the seriousness of the situation
Criminal charges are brought against men
involved in marketing campaign; they receive
community service
Turner Broadcasting pays $2m in compensation
for the negative impact of the campaign
Dumbest Marketing: Cutting Quality
Source: suite101.com; latimes.com
NBC’s rating slumps starts in 2004, after hits
“Friends” and “Frasier” went off the air
2008 TV season judged as “one of the worst
in memory,” with prime-time ratings down
12% for major networks NBC, ABC, CBS and
Fox
In early 2009, NBC ranks 4th
among major
networks in total viewers
NBC puts “The Jay Leno Show” in a prime-
time 10pm slot 5 nights a week – resulting in
low ratings, and damaged relationships with
talent, advertisers, and affiliates
Conan O’Brian leaves NBC with a $45m
payout and the network pulls Leno’s show
from the 10pm slot
Dumbest Marketing: Cutting Quality
Source: tvbythenumbers.com
Lessons Learned
 Innovative campaigns take advantage of new technology
 Traditional media still count – its not all about the web
 Be careful with “viral marketing”
 Content is still king – programming is most important
_______________
Marketing Strategies &
Vehicles
Tactics used by competitors
Marketing Strategies
Food Network:
Beyond food, to food and entertainment
Discovery Communications:
Discovery is more than the name of our company… it is our calling.
Empowers people to explore their world and satisfy their curiosity.
Travel Channel:
Bringing a destination to life in your home
BBC America:
An international treat; “Britishness” of their perspective on food, their country and
the US
(All from Multichannel News, 22 Feb 2010)
Live Events
Live Events
Food personalities charge as much as $250
per ticket for live cooking demonstrations
Food Network personalities participating in a
“Celebrity Chef Series” in Miami, with tickets
from $25 to $200
Top line talent may be paid as much as
$75,000 for a cooking demonstration at a
live event
- (The Wall Street Journal, 2 October 2009)
“It’s easily the most
lucrative part of what I do.”
- Anthony Bourdain of The
Travel Channel’s No
Reservations
Public Relations & Publicity
Gordon Ramsay of BBC America’s The F Word and
Ramsay’s Kitchen Nightmares on Letterman
Food Network’s Bobby Flay on CBS
Cookbooks & Magazines
Product Tie-Ins and Merchandising
Product Tie-Ins and Merchandising
Number of brands participating in
entertainment marketing campaigns was
50% higher in 2009 over 2008
Restaurants and fast-food companies
appeared in 13% of all programs in 2009
Packaged food brands more than doubled
their tie-in involvement
- (Entertainment Marketing Letter, 15 March 2010)
NOTE: Percentages based on total promotions reported in
Entertainment Marketing Letter, 2008-2009. * Percentage of all
programs that involve at least one consumer brand, as opposed to
programs solely between entertainment and media companies.
Product Tie-Ins and Merchandising
Giada for Target:
Perfect fit: Style and personality match the
Target brand core customer
Paula Deen for Smithfield Hams
http://www.youtube.com/watch?v
=HJfSF0S11Y4
Tom Colicchio for Diet Coke
http://www.youtube.com/watch?v
=q1aHcrjDDTs
Social Media & Mobile Apps
Advertising: Food Network
Alton Brown commercial
Iron Chef Commercial
Iron Chef
White House Commercial
Advertising: Competition Discovery Comm
Deadliest Catch 2010 Commercial
Mega Builders 2010
Commercial
Cake Boss Sesame Street Trailer
Cake Boss Commercial
Advertising: Competition Bravo
Top Chef
Commercial
Advertising: Competition Bravo
Advertising: Competition BBC
Kitchen Nightmares Commercial
BBC America promo
_______________
Market Research
Results from research
General Demographics
33%
59% 41%
77% digital
or satellite
subscribers
74% age 25-34
92% age 25-44
70%
45%
34%
8%
13%
How do you cook?
72% are frequent cooks (daily, or 2-3 times per week)
92% of frequent cooks
focus on weeknight
dinners
Nearly half focus on
special occasions and
party foods
Market Research: TV Viewing
82% watch on
weeknights
54% watch on
weekendsOnly 6% watch weekdays
53% watch pre-
recorded TV
74% watch
live TV
What kind of TV programs do you watch?
Thumbs up to scripted dramas, documentaries, and cooking
programs:
• 80% frequently or sometimes watch scripted dramas
• 73% frequently or sometimes watch documentaries
• 60% frequently or sometimes watch cooking programs
Reality TV and competition shows? Not so much:
• 61% rarely or never watch competition shows
• 55% rarely or never watch reality TV
What lifestyle networks do you watch?
Food Network ties
Bravo as the channel
that the largest number
of respondents watch
at least once a week
0 5 10 15 20 25 30 35
BBCAmerica
VH1
HGTV
Nat ional Geographic
The Travel Channel
TLC(The Learning Channel)
History Channel
Discovery Channel
The Food Network
Bravo
What do you think about Food Network?
Programming
“Its ok… not enough instructional programming.”
“Most of the Travel Channel shows I watch are those
related to food.”
“Programming quality has gone down hill.”
“Great programs, especially ones about travel and local
cuisines.”
“Prefer shows about the history of food. The challenge
shows feel too contrived.”
“Too much competition shows and not enough how-to.”
“No longer about cooking – its about competition and
travel!”
“I used to like it, however they started showing all that
cooking competition crap.”
“Can get repetitive.”
“Love chocolate competitions and cake bakers!”
“I’m an experienced cook – I want more complicated
recipes.”
“I like the cooking shows better than competitions.”
“Not very comfortable with the direction the
programming seems to be moving.”
“Wish that some of the actual cooking shows were on
later in the evening.”
General
“Educational when you need new ideas for meals.”
“One of my favorite channels!”
“One of my go-to channels.”
“Enjoy watching to relax in the evening.”
“Perfect for winding down.”
“Cannot live without it.”
Personalities
“Shoved Rachel Ray down our throats.”
“Alton Brown is awesome!”
“Nigella is HOT!”
“Rachel Ray has too many shows.”
“Bring back Batali!”
“Alton Brown rules!”
“Dumbed down the quality of its chefs.
Long on personality with too few
international chefs.”
“I wish they would try new chefs.”
“Very talented personalities.”
“Need more variety in the hosts.”
What cooking programs do you like?
Most liked:
Top Chef
Iron Chef America
Barefoot Contessa
Good Eats
Least liked:
30 Minute Meals
Hell’s Kitchen
Semi-Homemade-30 -20 -10 0 10 20 30 40
Cooking for Real
Last Restaurant Standing
Chopped!
Gordon Ramsay's F Word
Downhome with the Neelys
Semi-Homemade
Throwdown with Bobby Flay
Bizarre Foods with Andrew Zimmern
Everyday Italian
No Reservations
Hell's Kitchen
Diners, Drive-ins and Dives
Ramsay's Kitchen Nightmares
30 Minute Meals
Good Eats
Barefoot Contessa
Paula's Home Cooking
Iron Chef America
Top Chef
Like Dislike
Most
controversial:
Rachel Ray
50/50 Like-Dislike
What personalities do you like?
Most liked:
Anthony Bourdain
Paula Deen
Alton Brown
Emeril Lagasse
Giada de Laurentis
Least liked:
Rachel Ray
Sandra Lee
Gordon Ramsay
Paula Deen
-40 -30 -20 -10 0 10 20 30 40 50
Sunny Andersen
The Neelys
Andrew Zimmern
Nigella Lawson
Sandra Lee
Wolfgang Puck
Ina Garten
Guy Fieri
Jamie Oliver
Giada de Laurentis
Alton Brown
Gordon Ramsay
Bobby Flay
Emeril Lagasse
Anthony Bourdain
Paula Deen
Rachel Ray
Like Dislike
Lesser known personalities
Personality # “never heard
of”
Like/Dislike
Sunny Andersen 53 4 (12/3)
The Neelys 37 1.9 (21/11)
Sandra Lee 36 1 (16/16)
Nigella Lawson 35 5.4 (27/5)
Andrew Zimmern 33 3 (24/8)
Ina Garten 33 4.4 (35/8)
Alton Brown 29 11.3 (45/4)
Guy Fieri 29 4.5 (36/8)
Giada de Laurentis 26 4.3 (39/9)
Jamie Oliver 26 10 (40/4)
Anthony Bourdain 16 4.9 (49/10)
_______________
Perceptual Maps
Perceptual Map: Lifestyle Programming
younger/edgier
older/mainstream
entertainment education
Perceptual Map: Lifestyle Programming
younger/edgier
older/mainstream
escapism enrichment
_______________
Summary
Lessons Learned
Leverage Positive Brand – i.e. Brought to you
by experts in food programming
Differentiate with new talent, new
programming that appeals to your target
Match interests/needs of target audience:
local content, organic, travel focused
Learn from competition
Embrace new relevant technology
SWOT Analysis
STRENGTHS
• Powerful Brand
• Food Stars & Talent
• Proven Food Programming
• Audience Knowledge- Market Research
• Large Viewership to Cross Promote
• Established Distribution
OPPORTUNITIES THREATS
WEAKNESSES
• Lack of many new stars
• Lack of new programming
• Slightly Older & Middle America Fans
• Brand perception lacking cool, new buzz
• Need more powerful web presence
• Cable Category Growth
• Lifestyle Programming Growth
• Increase in Interest in Food & Cooking
• Well Liked & Unknown Talent
• Economic Influence- more people cooking
at home & return to traditional values
• Big Networks going after food category
• Other new ventures from competition
• People Still Prefer Scripted Dramas
• Web Usage & Web programming (alternative to
food programming)
• Distribution challenges (cablevision issue)
_______________
Marketing Plan
Business Objectives and Goals
Primary focus on awareness and viewership
Goals:
- Increase ratings to attract future advertising revenue
- Attract a younger and more affluent demographic in
comparison to the Food Network
- Define the brand as a distinct entity from the Food Network
- Establish a level of celebrity for Cooking Channel hosts and
stars
Target Audience
age group
College & Grad Students
18-34
Daytime downtime
New to cooking, or don’t
need to cook
Travel explorers
Highly mobile
Daytime downtime
Educated Professionals
25-44
Busy by choice
Frequent socializers
Business & pleasure travel
Highly mobile
No daytime-weekday watching
$$$
Educated Parents
35-44
Time-strapped
Family dinners
Vacations around the U.S.
Not permanent “stay-at-home”
Issues- and wellness-minded
Brand Positioning Statement
Students
To reach students age 25-34, Cooking Channel is the lifestyle network
that combines the best of food and entertainment which is good
because it introduces cooking and food culture in a youthful and
edgy/fashionable format.
Educated Professionals
To reach working professionals age 25-44, Cooking Channel is the
lifestyle network that connects you with food through cooking,
dining and travel which is good because it enriches your life with a
passionate knowledge of food.
Educated Parents
To reach parents age 34-44, Cooking Channel is the lifestyle network
that provides a fresh take on food programming which is good
because it helps the aspirational cook to nourish their families and
communities.
Product Line (Programming)
Documentary
Foodography with
Mo Rocca (on
Cooking Channel in
May)
Instruction
Brunch with Bobby
French Food at
Home
The Spice Goddess
Chinese Food
Made Easy
(all on Cooking
Channel in May)
Competition
Iron Chef America
Chopped
Throwdown
Travel/Reviews
No Reservations
Diners, Drive-ins,
and Dives
Reality
Ace of Cakes
Private Chefs of
Beverly Hills
Weekday Programming
Target Audience Programming
A.M. (9-12) Parents Cooking instruction
Day (12-4) Students Competition
Food Reality
Cooking instruction
P.M. (4-7) Parents; Students Competition
Food Reality
Cooking instruction
Prime (7-11) Educated professionals Cooking instruction
Travel & Reviews
Food Documentary
Late
(midnight+)
Educated professionals; Students Travel & Reviews
Competition
Food Documentary
Sources of Volume
% volume from… May 2010 – May 2011
New Users 60%
Competitors 35%
Outside of Category 15%
Current Users (Scripps
users)
40%
Current users will come from existing Scripps properties like the Food Network and
Travel Channel, most likely attracting audience members in the parents and
educated professionals targets.
New users are likely to be sourced from competitor networks that reach the parent
and educated professionals markets – TLC, Discovery, etc. – and from different
lifestyle networks that reach all markets, including students – MTV, Spike, VH1,
Lifetime, etc.
Channels of Distribution
Cooking Channel will be distributed in approximately 55 million
households, which is approximately 48% of the total U.S. television
households for the 2009-2010 season.^
http://blog.nielsen.com/nielsenwire/media_entertainment/1149-million-us-television-homes-estimated-for-2009-2010-season/
Biggest local TV markets (Nielsen):
Pricing: Cooking Channel will offer a
choice for new advertisers looking for
a lower point of entry to Scripps
properties like Food Network and The
Travel Channel, or for current
advertisers looking to expand their
reach.
Key Components & Seasonality
Advertising: TV, Print and Web
Public Relations: TV, Print and Web
Direct Marketing: Email newsletter
Social Media/Viral Marketing
Community Management
Mobile App
Event Marketing
Launch Party
Summer Festival
College Cook-off
Summer Fall Winter Spring
Increase in
travel
Grilling &
BBQ, Fourth
of July
Food
festivals
Back-to-
school,
need for
“quick
meals”
Halloween
Start of the
baking
season
All about
food:
Thanksgiving
Christmas
Hanukkah
New Year’s
Eve
Late winter:
Healthy
eating
V-Day
Fresh
produce
St. Patrick’s
Day
Easter
Mother’s
Day
Marketing Budget & Spending Split
Scripps Revenue: $1,367m (2009)
Ad revenues are 74% of this: $1,012m
FN is 33% of this: $334m
Cooking Channel will be distributed in 57% of the households that Food Network is,
so we can estimate advertising revenues will reach: $189m
If they spend 20% on marketing in the first year, the marketing budget should be:
$38.5 million Optimal Budget Allocation
TV
Print
Digital
Event
PR
Chart to right shows optimal
spending breakdown.
Actual spend is much lower, at
$18.5 million, due to house space
and free advertising on Scripps TV
networks and digital media
Actual Spending Split
73%
5%
19%
3%
Actual Budget Allocation
Print
Digital
Event
PR
Media Plan Rationale
• Utilize the most visual and interactive advertising
mediums- TV, Print & Digital
• Leverage the Scripps Network Media Platforms
• Reach core target of parents and educated
professionals with consistent advertising
presence post launch & heavy focus on the fall
and holiday seasons
• Engage a new student audience during the key
Back to School season
Media Plan Vehicles
• TV: House Ads on Scripps Network
• Digital: Scripps Networks Online Advertising, Mobile Application, Email
Newsletter and Social Media
• Print:
– Endemic Food Publications: Food & Wine, Bon Appetit, Food Network
Magazine, Everyday with Rachael Ray, Cooking with Paula Deen
– Lifestyle Publications: Martha Stewart Living, O Magazine, Parenting,
Family Circle, Allure
– Male & Student: Cigar Aficionado, Student University Magazines
Communications Strategy
The actual working tagline for Cooking Channel is “a channel by food people for food
people”. Our tagline is similar, focusing first on the key aspect and point of the
channel: cooking.
While the key message is focused on cooking, for advertising that reaches each
audience, we have variations on this theme – channel your inner chef, channel your
inner tourist, etc.
We also wanted to play on the word “channel” to promote a tech-forward position for
the network – access to shows on mobile devices, on-demand, etc. will be a key
component of our plan.
Communication Strategy: Advertising
Example
crunchy pigs’ ears at Aldea
garlic-crusted chicken for two at
Locanda Verde
spicy hot beef links dusted with
shallots at Char No. 4
salty fried sweetbreads and
cauliflower at Maialino
served up to you 24-7
channel your inner food critic
Direct Marketing Plan
• Focus on Digital Only
Email Marketing
• Primary Focus on
Scripps Network
Database
• Pre-Launch & Launch
invitation to sign up
• On-going weekly
newsletter
Internet Marketing Plan
• Goals: Drive Cooking Channel Brand
Awareness and Preference
– Increased Traffic to Cooking Channel website
– Increased engagement i.e. time spent,
comments posted, recipes downloaded etc.
– Video distribution of new programming to test
ideas & gain new loyal audience
– Increase fan following within social networks
Internet Marketing Plan
• Strategies:
– Search Engine Optimization
– Cross Promote website through Scripps Network
online platform links
– Call out website in TV promotions on Scripps Network
and in new shows on Cooking Channel
– Drive traffic through email newsletter sends and alerts
– Distribute videos through YouTube and Hulu with
links back to the Cooking Channel website
– Regular updates on Twitter & Facebook to build
community
Internet Marketing Plan:
Social Media/Viral Marketing
Goals:
• Pre-Launch Buzz Creation and Market
Research
– Teasers to generate excitement
– Announce Cooking Channel Concept
– Test ideas with target audience
– Introduce and test programming and stars
• On-going Engagement
Internet Marketing Plan: Social Media
Internet: Pre-Launch Buzz &
Introduction
Internet: Free Market Research
Internet: Introduce & Test Programming
Mobile App
Cooking Channel Restaurant and Food Review
Competition
- Downloadable app uses geo-tagging and integrates with
networks like Facebook, Twitter, Open Table and
FourSquare to track your “checking in” at various food, bar
and restaurant locations you visit
- Users receive credit for each review or “tip” you provide
- Winners from 20 U.S. cities get to appear on a Cooking
Channel special that reviews the best local picks in 20
cities
- App remains useful following competition as a source for
“foodie”-driven reviews
Benefits of App & Competition
- Creates an installed mobile user base for Cooking
Channel
- Promotes Cooking Channel using viral marketing
Public Relations Plan
Broadcast Promotion
• Promotions of new shows on targeted morning and daytime news shows – Today, Good Morning America
• Appearances by edgy Scripps stars on late night shows – for ex. Anthony Bourdain, Giada de Laurentis, Bobby Flay
Print and Web Promotion
• Leverage Cooking Channel celebrities in various events across the country, to generate awareness of Cooking
Channel and its programs
• Promote seasonal recipes from Cooking Channel programs at key points of year: Fourth of July; Labor Day; Back-to-
School; Fall Season; Halloween; Thanksgiving; Christmas; Hanukkah; New Year’s Eve; Healthy Recipes for New
Year’s Resolutions; Valentine’s Day; Easter; Passover; Cinco de Mayo
• Targets: Top 50 U.S. Newspapers; Key Food Blogs – Eater, Grub Street; Women’s Books & Travel Magazines
• Local news and radio for college cook-off (promotion of charitable donation)
Social Media Activities
• Daily update to Cooking Channel Facebook page and other social networks of dinner recipes or special occasion
recipes (full-time community manager)
Events
• Summer Festival in New York
• Launch Party at Chelsea Market
• College Cook-off Competition
PR: Broadcast Promotion
Show Target Audience Pitch Notes
Today, GMA, Fox &
Friends, Rachel
Ray, Bonnie Hunt
Show, The Ellen
Degeneres Show
Women, Parents Recipes for fresh,
summer produce
(Sunny Anderson,
etc.)
Summer slow news time
The Tonight Show,
David Letterman,
Colbert, The Daily
Show
Educated
Professionals,
College Students
Bad boy vacation
spots (Anthony
Bourdain, etc.)
Attract new target audiences
Key Print Magazines
Better Homes & Gardens
Good Housekeeping
Taste of Home
Southern Living
Martha Stewart Living
Real Simple
Cooking Light
Bon Appetit
Food & Wine
Woman's Day
Family Circle
Ladies Home Journal
O, The Oprah Magazine
Redbook
Travel and Leisure
Budget Travel
Conde Nast Traveler
Wine Spectator
Intermezzo
Everyday with Rachel Ray
Food Network Magazine
Food Blogs & Websites
Serious Eats
Delish.com
Chez Pim
Eater
Chocolate and Zucchini
Cooking with Amy
Example Editorial Calendars
Publication MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR
Food & Wine Grilling
issue
Chefs
issue
Thanks-
giving
Bars Healthy
Eating
Travel + Leisure Food &
Travel
issue
Taste of Home Mother’s
Day issue
Halloween Holiday and
Superbowl
Mardi Gras Issue
Real Simple Grilling
and
Wine
Valentine’s
Day,
Everyday
meal planning
Ladies Home
Journal
BBQ Hallow
een
treats
Everyday with
Rachel Ray
Grilling Thanks-
giving
Making
meals
lighter
Woman’s Day 15-Minute
Meals
Grilling Favorite
dishes
Money
saving
meals
Apples Thanks-
giving
Eating well,
downsized
desserts
Budget
friendly
recipes
Easter
feast
Summer Festival & Launch Party
Street Festival
• Free NY street festival on Ninth Avenue in Chelsea
• Features local NYC restaurant booths and special
appearances by Food Network alums and new Cooking
Channel stars
• Event culminates in Chelsea Market Launch Party for
Cooking Channel
Launch Party
• “Red Carpet” Launch Party at
Chelsea Market, home of the Food
Network.
• Invite list including Food Network
stars and new Cooking Channel
talent, plus NY-celebrities
College Cook-off Competition
Competition Outline
• To engage the student market, colleges and universities petition
for a college chili cook-off on their campus.
• 10-20 colleges selected from around the country
• Winning universities have a visit from a Cooking Channel star
who hosts the special series to be broadcast on Cooking Channel
• Winning associations (student groups, fraternities, sororities) get
a $20,000 donation to their philanthropy
• Promotion via local and college radio
Benefits
• Attract a new audience
• More exposure for Cooking Channel around country
Total Program Costs
Element Cost
TV Media Total $0 (in-house)
Digital Total $950,000 (partial in-house)
Print Media Total $13,414,567
Event Total $3,500,000
PR Total $600,000
TOTAL PROGRAM SPEND $18,464,567
TV and Digital Media Costs
Marketing Initiatives Rate Total
House Advertising
Scripps Network TV $0- In House Promotion $0- In House Promotion
Scripps Online $0- In House Promotion $0- In House Promotion
Direct Marketing Email
Newsletter $0- In House Promotion $0- In House Promotion
Food Network Magazine $0- In House Promotion $0- In House Promotion
Total House $ -
Digital Programs
Social Networking $0- In House Promotion $0- In House Promotion
Online Advertising $0- In House Promotion $0- In House Promotion
Direct Marketing Email
Newsletter $0- In House Promotion $0- In House Promotion
Mobile Application $ 100,000.00
Mobile Competition $ 750,000.00
SEO/Keyword Purchase $ 100,000.00
Total Digital/Online $ 950,000.00
Print Media Costs
Print Programs
Endemic Food Publications Full Page 12x Rate Number of runs
Food & Wine $ 75,700.00 12 $ 908,400.00
Bon Appetit $ 127,814.00 12 $ 1,533,768.00
Rachael Ray Magazine $ 135,000.00 12 $ 1,620,000.00
Paula Dean Magazine $ 51,180.00 12 $ 614,160.00
Lifestyle Publications
Martha Stewart Living $ 145,000.00 7 $ 1,015,000.00
Family Circle $ 254,600.00 7 $ 1,782,200.00
Parenting $ 127,905.00 7 $ 895,335.00
Women's Health $ 161,090.00 7 $ 1,127,630.00
Marie Claire $ 120,240.00 7 $ 841,680.00
Self $ 158,434.00 7 $ 1,109,038.00
Allure $ 125,135.00 7 $ 875,945.00
O Magazine $ 125,613.00 7 $ 879,291.00
Male & Student Publications
Cigar Afficianado $ 26,780.00 4 $ 107,120.00
Local Student Mags $ 1,750.00 60 $ 105,000.00
Total Print $ 13,414,567.00
Event & PR Costs
Community/Event
Programs
Summer Festival and
Launch Party $ 1,500,000.00
College Cook-off Competition and Special Series in partnership with MTV $ 2,000,000.00
Total
Community/Event $ 3,500,000.00
PR
PR Firm Costs for
Media Relations
$ 400,000.00
Full-Time Community
Manager (Facebook,
etc.)
$ 200,000.00
Total PR $ 600,000.00
Integrated Marketing Flowchart
Int. Marketing Flowchart (cont’d)
Market Research Plan
Issues to be Researched
- Attractiveness of Cooking Channel talent
- Areas of interest
- Viewing habits
- Cooking habits
- Awareness and opinion of Food Network
- Awareness and opinion of Cooking Channel
Timing & Cost
- On-going research through social network programs
- 4 runs: early May (pre-launch); August; January/February (just following
holidays); May 2011 (comparison against full year progress)
- Cost: approximately $150,000 - $200,000 ($37,500 - $50,000 per run)
Marketing Metrics
• Ratings
• Website traffic, time spent on website
• Mobile app downloads
• News/blog mentions of Cooking Channel
and talent
• Facebook/social media followers
Risks & Hedges
Risks
• Change in consumer taste
• Programming attractiveness
• Cannibalization/confusion
• Increased competition
• Weather for summer festival
and college cook-off
• Liability issues with colleges
• Budget cuts
Hedges
• Unique focus on food as a
network, not just a show
• Initial programming based on
existing international
successful shows
• Gives opportunity to test
programming online
• Structure of programming to
appeal to different audiences
at different times
• Alternative indoor locations
and/or tents for events
• Cut back on print spending in
less food-focused publications
Marketing Plan for the:
Cooking Channel
Presented by Kathleen Curtin and Jennifer Hoffmann
NYU Stern Langone Program
For Professor Michelle Greenwald: Advanced Marketing
Planning and Strategy, Spring 2010

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Cooking Channel Marketing Project

  • 1. Marketing Plan for the: Cooking Channel Presented by Kathleen Curtin and Jennifer Hoffmann NYU Stern Langone Program For Professor Michelle Greenwald: Advanced Marketing Planning and Strategy, Spring 2010
  • 3. Major Players in Cable Television 2008 Revenues $183 billion $37.8 billion $33 billion $29.8 billion $14.6 billion $14 billion $4.38 billion $1 billion $2 billion Networks
  • 4. Top 25 Cable Programming Networks * National Cable and Telecommunications Association
  • 5. Top 3 Reality Programs, Adults 18-49
  • 6. Industry Trends Cable winning over Broadband • 1010 hours per year in 2007 vs 886 hours in 2003 (cable & satellite viewing) • Same period: Broadcast TV fell from 729 to 676 hours Ad supported cable networks held 56% share of primetime viewers, compared to 41.8% share for broadcast (2007) [p13 if we want more] Networks actively seek out new talent Food Network: 6% of audience is Hispanic
  • 7. 1.3 billion subscribers •Satellite and VOD services have shown the largest subscriber growth in recent history. • 31 million subscribers with video-on-demand services •Trend is migration from basic to digital and satellite. * IBISWorld
  • 8. Market Structure Chart Cable Television Movies Scripted Dramas & Sitcoms News Family Lifestyle Documentary Women’s networks Home improvement Music & Celebrity Cooking & Travel Men’s networks Sports Nature Lifetime O! We TLC DIY HGTV MTV VH1 Bravo Food Network Fine Living Travel Channel Cooking Channel Spike Outdoor Channel Discovery Planet Green Nat Geo
  • 9. Industry Trends Increasing competition due to increased desire for diverse programming that reaches niche markets (amount of spending on programming has quadruled since 1996) Distributors also demanding more lifestyle, family and educational programming 0 5 10 15 20 25 1996 2001 2004 2007 Spending (in billions) * IBISWorld, Spending on TV Programming “The once quirky and small-time food entertainment field has morphed into a big business.” – The Wall Street Journal, 6 Mar 2010
  • 10. Industry Size & Growth Forcast Total Cable Industry: $41.5 billion $26.6 billion in ad revenue -3 -2 -1 0 1 2 3 4 5 6 2006 2007 2008 2009 2010 Real Revenue Growth Rate Real revenue growth declining for cable industry * IBISWorld, Revenue Growth Rate for the Cable Industry Real industry revenue is forecast to increase at a rate of 3.4% annually over the next 5 years until 2014 (IBIS World) • Expanded number of channels • Continued shift to digital & satellite • Increased demand for programming and new channels
  • 11. Advertising Revenues Top national TV advertisers: • Beauty and household • Auto • Pharmaceuticals • Telecom (First Research, Industry Profile TV, Cable ,Pay and Broadcast Networks – 21 Dec 2009) * National Cable and Telecommunications Association National and regional advertising accounts for 45% of revenue
  • 12. _______________ Key Competitors Performance of Scripps and most relevant competitors
  • 13. Key Competitors Performance: Ratings Food Network: Possible comparison of ratings: NBC at 1.5, USA at 1.2 or 1.3; NBC average season-to-date rating in 18-49 year olds is 2.6 through Feb 6 Lifetime: Big ratings decline; ended 2009 down 20% among viewers and 17% among 18-49 year olds (vs. 2008) History Channel: ended 2009 with ratings up 3% over 2008 2009, Daily Variety (28 Dec 2009) Food Network total viewers grew 26%, same in adults 18-49 TLC grew 18% in total viewers and 13% in adults 18-49 Top three reality programs with adults 18-49: Deadliest Catch, Project Runway, Top Chef Other networks also up double digits in adults 18-49: BET, TruTV, Travel Channel, Animal Planet, Lifetime Movie Network, Nat Geo, Versus and SoapNet
  • 14. Scripps Networks • Market share: 3.8% • 4Q ad revenues rose 7% to $281 million, compared to Time Warner and Viacom showing a 4% ad-sales drop for the same period (Broadcasting & Cable, 22 Feb 2010) • Total TV ad revenue in 2009 for its cable networks: $1 billion • Seeing advertisers shift to more specialty networks • Rates running 20% higher than upfront • Carriage fees: estimated to receive about $0.08 per subscriber/month for Food Network and $0.13 per subscriber/month for HGTV; Scripps negotiated this up, likely (Multichannel News, 10 Feb)
  • 15. Food Network “Way more than cooking” “A unique lifestyle network that strives to be way more than cooking. The network is committed to exploring new and different ways to approach food.” Cast a wide net on the hobby of food – explore through: • Travel • Competition • Pop culture • Adventure • Technique Make cuisine accessible to the home cook Pioneer in food programming – launched in 1993 & Distributed to more than 96 million U.S. households Ratings among 25-to-54 year olds has grown 54% since 2004* January: Food Network ratings rose 28% to an average of 1.3 million viewers**
  • 16. The Travel Channel Entered 2009-10 upfront season: • Increased upscale audience delivery 40% year-on-year with adults 25-54 and 18-49 • Moved median age down 5 years to 45 • Reach, frequency and duration of viewing up 10% in primetime with 25-54 age bracket 95 million subscribers (Nielsen estimate, Aug. 2009) Desire to grow the channel internationally and improve positioning on the web Touts unique perspectives on travel, website “hub”, and mobile platform
  • 17. Key Competitor: Discovery Comms Properties include TLC, Animal Planet, Discovery Health, etc (find all properties and include logos) Market share: 5.3% For first 9 months of fy2009, US networks revenue rose 4% to $1.6 billion For fy2008, us networks revenue rose 10% to $2 billion, ad revenue rose 9% to $975 million (ibisworld data) TLC: BBQ Pitmasters – changing to competition format; averaged 900,000 total viewers and posted double digit increases for the network among male viewers during first season (Multichannel News, 15 March 2010)
  • 18. Discovery & TLC TLC: Focus on international expansion “Female-driven” franchise Discovery: Empowers people to explore their world
  • 19. Bravo NBC “Delivers the best in food, fashion, beauty, design and pop culture to the most engaged, upscale and educated audience in cable” – bravo.com Focus on upscale market, breakout stars and critical acclaim for its shows “On-air, online and on-the-go”
  • 20. BBC America “Pushes the boundaries” to deliver high quality, highly addictive programming For viewers who demand more “Cool Britannia”
  • 21. _______________ Smartest and Dumbest Marketing Tactics Historical view of best and worst marketing examples
  • 23. Smartest Marketing: Building Buzz The Blair Witch Project was released on July 30, 1999 One of the most profitable films of all time – took in $28.5m in its first week, on an initial budget of $25k Went on to gross $248m worldwide Blair Witch website listed by Nielsen NetRatings as the 45th most visited location for the week ending August 1 1999 – average visit of 16 minutes Considered one of the first movies to be largely marketed on the web Source: e-strategy.com & wikipedia.org
  • 24. Smartest Marketing: Building Buzz During the Cannes Film Festival, filmmakers mounted small posters styled to look like they were about real events: Source: www.mischiefmarketing.com
  • 25. Smartest Marketing: Building Buzz Filmmakers built a site with an interactive timeline and back story to create buzz with a compelling tale Source: e-strategy.com
  • 27. Smartest Marketing: Creative Tie-In HBO series True Blood marketed its second season 2009 through “fake ads” created in conjunction with major consumer brands Ads appeared online, but also in traditional media like magazines and billboards Second season opened as HBO’s most watched program since The Sopranos finale “A key element to the show is that vampires live among us. We've extended that idea to cross over and bend reality to target vampires with faux special vampire products.“ -- Zach Enterlin, HBO's vice president, advertising and promotions "This is a very cool, sexy, powerful brand. It's youthful and powerful and has attitude and strength. That's really a great partner for a brand like ours." -- Dino Bernacchi, Harley-Davidson's director, advertising, promotions and entertainment Source: USA Today; variety.com
  • 29. Smartest Marketing: Creative Tie-In Source: creativity-online.com; Media Post online
  • 30. Dumbest Marketing: Terrorism Source: marketwatch.com; Daily Variety; boston.com In Jan 2007, Cartoon Network plants devices containing “magnetic lights” to promote its Adult Swim show “Aqua Teen Hunger Force”, causing a shutdown of major roadways and subway lines in Boston, Mass. Executive VP and general manager Jim Samples resigns in early February in recognition of the seriousness of the situation Criminal charges are brought against men involved in marketing campaign; they receive community service Turner Broadcasting pays $2m in compensation for the negative impact of the campaign
  • 31. Dumbest Marketing: Cutting Quality Source: suite101.com; latimes.com NBC’s rating slumps starts in 2004, after hits “Friends” and “Frasier” went off the air 2008 TV season judged as “one of the worst in memory,” with prime-time ratings down 12% for major networks NBC, ABC, CBS and Fox In early 2009, NBC ranks 4th among major networks in total viewers NBC puts “The Jay Leno Show” in a prime- time 10pm slot 5 nights a week – resulting in low ratings, and damaged relationships with talent, advertisers, and affiliates Conan O’Brian leaves NBC with a $45m payout and the network pulls Leno’s show from the 10pm slot
  • 32. Dumbest Marketing: Cutting Quality Source: tvbythenumbers.com
  • 33. Lessons Learned  Innovative campaigns take advantage of new technology  Traditional media still count – its not all about the web  Be careful with “viral marketing”  Content is still king – programming is most important
  • 35. Marketing Strategies Food Network: Beyond food, to food and entertainment Discovery Communications: Discovery is more than the name of our company… it is our calling. Empowers people to explore their world and satisfy their curiosity. Travel Channel: Bringing a destination to life in your home BBC America: An international treat; “Britishness” of their perspective on food, their country and the US (All from Multichannel News, 22 Feb 2010)
  • 37. Live Events Food personalities charge as much as $250 per ticket for live cooking demonstrations Food Network personalities participating in a “Celebrity Chef Series” in Miami, with tickets from $25 to $200 Top line talent may be paid as much as $75,000 for a cooking demonstration at a live event - (The Wall Street Journal, 2 October 2009) “It’s easily the most lucrative part of what I do.” - Anthony Bourdain of The Travel Channel’s No Reservations
  • 38. Public Relations & Publicity Gordon Ramsay of BBC America’s The F Word and Ramsay’s Kitchen Nightmares on Letterman Food Network’s Bobby Flay on CBS
  • 40. Product Tie-Ins and Merchandising
  • 41. Product Tie-Ins and Merchandising Number of brands participating in entertainment marketing campaigns was 50% higher in 2009 over 2008 Restaurants and fast-food companies appeared in 13% of all programs in 2009 Packaged food brands more than doubled their tie-in involvement - (Entertainment Marketing Letter, 15 March 2010) NOTE: Percentages based on total promotions reported in Entertainment Marketing Letter, 2008-2009. * Percentage of all programs that involve at least one consumer brand, as opposed to programs solely between entertainment and media companies.
  • 42. Product Tie-Ins and Merchandising Giada for Target: Perfect fit: Style and personality match the Target brand core customer Paula Deen for Smithfield Hams http://www.youtube.com/watch?v =HJfSF0S11Y4 Tom Colicchio for Diet Coke http://www.youtube.com/watch?v =q1aHcrjDDTs
  • 43. Social Media & Mobile Apps
  • 44. Advertising: Food Network Alton Brown commercial Iron Chef Commercial Iron Chef White House Commercial
  • 45. Advertising: Competition Discovery Comm Deadliest Catch 2010 Commercial Mega Builders 2010 Commercial Cake Boss Sesame Street Trailer Cake Boss Commercial
  • 48. Advertising: Competition BBC Kitchen Nightmares Commercial BBC America promo
  • 50. General Demographics 33% 59% 41% 77% digital or satellite subscribers 74% age 25-34 92% age 25-44 70% 45% 34% 8% 13%
  • 51. How do you cook? 72% are frequent cooks (daily, or 2-3 times per week) 92% of frequent cooks focus on weeknight dinners Nearly half focus on special occasions and party foods
  • 52. Market Research: TV Viewing 82% watch on weeknights 54% watch on weekendsOnly 6% watch weekdays 53% watch pre- recorded TV 74% watch live TV
  • 53. What kind of TV programs do you watch? Thumbs up to scripted dramas, documentaries, and cooking programs: • 80% frequently or sometimes watch scripted dramas • 73% frequently or sometimes watch documentaries • 60% frequently or sometimes watch cooking programs Reality TV and competition shows? Not so much: • 61% rarely or never watch competition shows • 55% rarely or never watch reality TV
  • 54. What lifestyle networks do you watch? Food Network ties Bravo as the channel that the largest number of respondents watch at least once a week 0 5 10 15 20 25 30 35 BBCAmerica VH1 HGTV Nat ional Geographic The Travel Channel TLC(The Learning Channel) History Channel Discovery Channel The Food Network Bravo
  • 55. What do you think about Food Network? Programming “Its ok… not enough instructional programming.” “Most of the Travel Channel shows I watch are those related to food.” “Programming quality has gone down hill.” “Great programs, especially ones about travel and local cuisines.” “Prefer shows about the history of food. The challenge shows feel too contrived.” “Too much competition shows and not enough how-to.” “No longer about cooking – its about competition and travel!” “I used to like it, however they started showing all that cooking competition crap.” “Can get repetitive.” “Love chocolate competitions and cake bakers!” “I’m an experienced cook – I want more complicated recipes.” “I like the cooking shows better than competitions.” “Not very comfortable with the direction the programming seems to be moving.” “Wish that some of the actual cooking shows were on later in the evening.” General “Educational when you need new ideas for meals.” “One of my favorite channels!” “One of my go-to channels.” “Enjoy watching to relax in the evening.” “Perfect for winding down.” “Cannot live without it.” Personalities “Shoved Rachel Ray down our throats.” “Alton Brown is awesome!” “Nigella is HOT!” “Rachel Ray has too many shows.” “Bring back Batali!” “Alton Brown rules!” “Dumbed down the quality of its chefs. Long on personality with too few international chefs.” “I wish they would try new chefs.” “Very talented personalities.” “Need more variety in the hosts.”
  • 56. What cooking programs do you like? Most liked: Top Chef Iron Chef America Barefoot Contessa Good Eats Least liked: 30 Minute Meals Hell’s Kitchen Semi-Homemade-30 -20 -10 0 10 20 30 40 Cooking for Real Last Restaurant Standing Chopped! Gordon Ramsay's F Word Downhome with the Neelys Semi-Homemade Throwdown with Bobby Flay Bizarre Foods with Andrew Zimmern Everyday Italian No Reservations Hell's Kitchen Diners, Drive-ins and Dives Ramsay's Kitchen Nightmares 30 Minute Meals Good Eats Barefoot Contessa Paula's Home Cooking Iron Chef America Top Chef Like Dislike
  • 57. Most controversial: Rachel Ray 50/50 Like-Dislike What personalities do you like? Most liked: Anthony Bourdain Paula Deen Alton Brown Emeril Lagasse Giada de Laurentis Least liked: Rachel Ray Sandra Lee Gordon Ramsay Paula Deen -40 -30 -20 -10 0 10 20 30 40 50 Sunny Andersen The Neelys Andrew Zimmern Nigella Lawson Sandra Lee Wolfgang Puck Ina Garten Guy Fieri Jamie Oliver Giada de Laurentis Alton Brown Gordon Ramsay Bobby Flay Emeril Lagasse Anthony Bourdain Paula Deen Rachel Ray Like Dislike
  • 58. Lesser known personalities Personality # “never heard of” Like/Dislike Sunny Andersen 53 4 (12/3) The Neelys 37 1.9 (21/11) Sandra Lee 36 1 (16/16) Nigella Lawson 35 5.4 (27/5) Andrew Zimmern 33 3 (24/8) Ina Garten 33 4.4 (35/8) Alton Brown 29 11.3 (45/4) Guy Fieri 29 4.5 (36/8) Giada de Laurentis 26 4.3 (39/9) Jamie Oliver 26 10 (40/4) Anthony Bourdain 16 4.9 (49/10)
  • 60. Perceptual Map: Lifestyle Programming younger/edgier older/mainstream entertainment education
  • 61. Perceptual Map: Lifestyle Programming younger/edgier older/mainstream escapism enrichment
  • 63. Lessons Learned Leverage Positive Brand – i.e. Brought to you by experts in food programming Differentiate with new talent, new programming that appeals to your target Match interests/needs of target audience: local content, organic, travel focused Learn from competition Embrace new relevant technology
  • 64. SWOT Analysis STRENGTHS • Powerful Brand • Food Stars & Talent • Proven Food Programming • Audience Knowledge- Market Research • Large Viewership to Cross Promote • Established Distribution OPPORTUNITIES THREATS WEAKNESSES • Lack of many new stars • Lack of new programming • Slightly Older & Middle America Fans • Brand perception lacking cool, new buzz • Need more powerful web presence • Cable Category Growth • Lifestyle Programming Growth • Increase in Interest in Food & Cooking • Well Liked & Unknown Talent • Economic Influence- more people cooking at home & return to traditional values • Big Networks going after food category • Other new ventures from competition • People Still Prefer Scripted Dramas • Web Usage & Web programming (alternative to food programming) • Distribution challenges (cablevision issue)
  • 66. Business Objectives and Goals Primary focus on awareness and viewership Goals: - Increase ratings to attract future advertising revenue - Attract a younger and more affluent demographic in comparison to the Food Network - Define the brand as a distinct entity from the Food Network - Establish a level of celebrity for Cooking Channel hosts and stars
  • 67. Target Audience age group College & Grad Students 18-34 Daytime downtime New to cooking, or don’t need to cook Travel explorers Highly mobile Daytime downtime Educated Professionals 25-44 Busy by choice Frequent socializers Business & pleasure travel Highly mobile No daytime-weekday watching $$$ Educated Parents 35-44 Time-strapped Family dinners Vacations around the U.S. Not permanent “stay-at-home” Issues- and wellness-minded
  • 68. Brand Positioning Statement Students To reach students age 25-34, Cooking Channel is the lifestyle network that combines the best of food and entertainment which is good because it introduces cooking and food culture in a youthful and edgy/fashionable format. Educated Professionals To reach working professionals age 25-44, Cooking Channel is the lifestyle network that connects you with food through cooking, dining and travel which is good because it enriches your life with a passionate knowledge of food. Educated Parents To reach parents age 34-44, Cooking Channel is the lifestyle network that provides a fresh take on food programming which is good because it helps the aspirational cook to nourish their families and communities.
  • 69. Product Line (Programming) Documentary Foodography with Mo Rocca (on Cooking Channel in May) Instruction Brunch with Bobby French Food at Home The Spice Goddess Chinese Food Made Easy (all on Cooking Channel in May) Competition Iron Chef America Chopped Throwdown Travel/Reviews No Reservations Diners, Drive-ins, and Dives Reality Ace of Cakes Private Chefs of Beverly Hills
  • 70. Weekday Programming Target Audience Programming A.M. (9-12) Parents Cooking instruction Day (12-4) Students Competition Food Reality Cooking instruction P.M. (4-7) Parents; Students Competition Food Reality Cooking instruction Prime (7-11) Educated professionals Cooking instruction Travel & Reviews Food Documentary Late (midnight+) Educated professionals; Students Travel & Reviews Competition Food Documentary
  • 71. Sources of Volume % volume from… May 2010 – May 2011 New Users 60% Competitors 35% Outside of Category 15% Current Users (Scripps users) 40% Current users will come from existing Scripps properties like the Food Network and Travel Channel, most likely attracting audience members in the parents and educated professionals targets. New users are likely to be sourced from competitor networks that reach the parent and educated professionals markets – TLC, Discovery, etc. – and from different lifestyle networks that reach all markets, including students – MTV, Spike, VH1, Lifetime, etc.
  • 72. Channels of Distribution Cooking Channel will be distributed in approximately 55 million households, which is approximately 48% of the total U.S. television households for the 2009-2010 season.^ http://blog.nielsen.com/nielsenwire/media_entertainment/1149-million-us-television-homes-estimated-for-2009-2010-season/ Biggest local TV markets (Nielsen): Pricing: Cooking Channel will offer a choice for new advertisers looking for a lower point of entry to Scripps properties like Food Network and The Travel Channel, or for current advertisers looking to expand their reach.
  • 73. Key Components & Seasonality Advertising: TV, Print and Web Public Relations: TV, Print and Web Direct Marketing: Email newsletter Social Media/Viral Marketing Community Management Mobile App Event Marketing Launch Party Summer Festival College Cook-off Summer Fall Winter Spring Increase in travel Grilling & BBQ, Fourth of July Food festivals Back-to- school, need for “quick meals” Halloween Start of the baking season All about food: Thanksgiving Christmas Hanukkah New Year’s Eve Late winter: Healthy eating V-Day Fresh produce St. Patrick’s Day Easter Mother’s Day
  • 74. Marketing Budget & Spending Split Scripps Revenue: $1,367m (2009) Ad revenues are 74% of this: $1,012m FN is 33% of this: $334m Cooking Channel will be distributed in 57% of the households that Food Network is, so we can estimate advertising revenues will reach: $189m If they spend 20% on marketing in the first year, the marketing budget should be: $38.5 million Optimal Budget Allocation TV Print Digital Event PR Chart to right shows optimal spending breakdown. Actual spend is much lower, at $18.5 million, due to house space and free advertising on Scripps TV networks and digital media
  • 75. Actual Spending Split 73% 5% 19% 3% Actual Budget Allocation Print Digital Event PR
  • 76. Media Plan Rationale • Utilize the most visual and interactive advertising mediums- TV, Print & Digital • Leverage the Scripps Network Media Platforms • Reach core target of parents and educated professionals with consistent advertising presence post launch & heavy focus on the fall and holiday seasons • Engage a new student audience during the key Back to School season
  • 77. Media Plan Vehicles • TV: House Ads on Scripps Network • Digital: Scripps Networks Online Advertising, Mobile Application, Email Newsletter and Social Media • Print: – Endemic Food Publications: Food & Wine, Bon Appetit, Food Network Magazine, Everyday with Rachael Ray, Cooking with Paula Deen – Lifestyle Publications: Martha Stewart Living, O Magazine, Parenting, Family Circle, Allure – Male & Student: Cigar Aficionado, Student University Magazines
  • 78. Communications Strategy The actual working tagline for Cooking Channel is “a channel by food people for food people”. Our tagline is similar, focusing first on the key aspect and point of the channel: cooking. While the key message is focused on cooking, for advertising that reaches each audience, we have variations on this theme – channel your inner chef, channel your inner tourist, etc. We also wanted to play on the word “channel” to promote a tech-forward position for the network – access to shows on mobile devices, on-demand, etc. will be a key component of our plan.
  • 79. Communication Strategy: Advertising Example crunchy pigs’ ears at Aldea garlic-crusted chicken for two at Locanda Verde spicy hot beef links dusted with shallots at Char No. 4 salty fried sweetbreads and cauliflower at Maialino served up to you 24-7 channel your inner food critic
  • 80. Direct Marketing Plan • Focus on Digital Only Email Marketing • Primary Focus on Scripps Network Database • Pre-Launch & Launch invitation to sign up • On-going weekly newsletter
  • 81. Internet Marketing Plan • Goals: Drive Cooking Channel Brand Awareness and Preference – Increased Traffic to Cooking Channel website – Increased engagement i.e. time spent, comments posted, recipes downloaded etc. – Video distribution of new programming to test ideas & gain new loyal audience – Increase fan following within social networks
  • 82. Internet Marketing Plan • Strategies: – Search Engine Optimization – Cross Promote website through Scripps Network online platform links – Call out website in TV promotions on Scripps Network and in new shows on Cooking Channel – Drive traffic through email newsletter sends and alerts – Distribute videos through YouTube and Hulu with links back to the Cooking Channel website – Regular updates on Twitter & Facebook to build community
  • 83. Internet Marketing Plan: Social Media/Viral Marketing Goals: • Pre-Launch Buzz Creation and Market Research – Teasers to generate excitement – Announce Cooking Channel Concept – Test ideas with target audience – Introduce and test programming and stars • On-going Engagement
  • 84. Internet Marketing Plan: Social Media
  • 85. Internet: Pre-Launch Buzz & Introduction
  • 87. Internet: Introduce & Test Programming
  • 88. Mobile App Cooking Channel Restaurant and Food Review Competition - Downloadable app uses geo-tagging and integrates with networks like Facebook, Twitter, Open Table and FourSquare to track your “checking in” at various food, bar and restaurant locations you visit - Users receive credit for each review or “tip” you provide - Winners from 20 U.S. cities get to appear on a Cooking Channel special that reviews the best local picks in 20 cities - App remains useful following competition as a source for “foodie”-driven reviews Benefits of App & Competition - Creates an installed mobile user base for Cooking Channel - Promotes Cooking Channel using viral marketing
  • 89. Public Relations Plan Broadcast Promotion • Promotions of new shows on targeted morning and daytime news shows – Today, Good Morning America • Appearances by edgy Scripps stars on late night shows – for ex. Anthony Bourdain, Giada de Laurentis, Bobby Flay Print and Web Promotion • Leverage Cooking Channel celebrities in various events across the country, to generate awareness of Cooking Channel and its programs • Promote seasonal recipes from Cooking Channel programs at key points of year: Fourth of July; Labor Day; Back-to- School; Fall Season; Halloween; Thanksgiving; Christmas; Hanukkah; New Year’s Eve; Healthy Recipes for New Year’s Resolutions; Valentine’s Day; Easter; Passover; Cinco de Mayo • Targets: Top 50 U.S. Newspapers; Key Food Blogs – Eater, Grub Street; Women’s Books & Travel Magazines • Local news and radio for college cook-off (promotion of charitable donation) Social Media Activities • Daily update to Cooking Channel Facebook page and other social networks of dinner recipes or special occasion recipes (full-time community manager) Events • Summer Festival in New York • Launch Party at Chelsea Market • College Cook-off Competition
  • 90. PR: Broadcast Promotion Show Target Audience Pitch Notes Today, GMA, Fox & Friends, Rachel Ray, Bonnie Hunt Show, The Ellen Degeneres Show Women, Parents Recipes for fresh, summer produce (Sunny Anderson, etc.) Summer slow news time The Tonight Show, David Letterman, Colbert, The Daily Show Educated Professionals, College Students Bad boy vacation spots (Anthony Bourdain, etc.) Attract new target audiences Key Print Magazines Better Homes & Gardens Good Housekeeping Taste of Home Southern Living Martha Stewart Living Real Simple Cooking Light Bon Appetit Food & Wine Woman's Day Family Circle Ladies Home Journal O, The Oprah Magazine Redbook Travel and Leisure Budget Travel Conde Nast Traveler Wine Spectator Intermezzo Everyday with Rachel Ray Food Network Magazine Food Blogs & Websites Serious Eats Delish.com Chez Pim Eater Chocolate and Zucchini Cooking with Amy
  • 91. Example Editorial Calendars Publication MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR Food & Wine Grilling issue Chefs issue Thanks- giving Bars Healthy Eating Travel + Leisure Food & Travel issue Taste of Home Mother’s Day issue Halloween Holiday and Superbowl Mardi Gras Issue Real Simple Grilling and Wine Valentine’s Day, Everyday meal planning Ladies Home Journal BBQ Hallow een treats Everyday with Rachel Ray Grilling Thanks- giving Making meals lighter Woman’s Day 15-Minute Meals Grilling Favorite dishes Money saving meals Apples Thanks- giving Eating well, downsized desserts Budget friendly recipes Easter feast
  • 92. Summer Festival & Launch Party Street Festival • Free NY street festival on Ninth Avenue in Chelsea • Features local NYC restaurant booths and special appearances by Food Network alums and new Cooking Channel stars • Event culminates in Chelsea Market Launch Party for Cooking Channel Launch Party • “Red Carpet” Launch Party at Chelsea Market, home of the Food Network. • Invite list including Food Network stars and new Cooking Channel talent, plus NY-celebrities
  • 93. College Cook-off Competition Competition Outline • To engage the student market, colleges and universities petition for a college chili cook-off on their campus. • 10-20 colleges selected from around the country • Winning universities have a visit from a Cooking Channel star who hosts the special series to be broadcast on Cooking Channel • Winning associations (student groups, fraternities, sororities) get a $20,000 donation to their philanthropy • Promotion via local and college radio Benefits • Attract a new audience • More exposure for Cooking Channel around country
  • 94. Total Program Costs Element Cost TV Media Total $0 (in-house) Digital Total $950,000 (partial in-house) Print Media Total $13,414,567 Event Total $3,500,000 PR Total $600,000 TOTAL PROGRAM SPEND $18,464,567
  • 95. TV and Digital Media Costs Marketing Initiatives Rate Total House Advertising Scripps Network TV $0- In House Promotion $0- In House Promotion Scripps Online $0- In House Promotion $0- In House Promotion Direct Marketing Email Newsletter $0- In House Promotion $0- In House Promotion Food Network Magazine $0- In House Promotion $0- In House Promotion Total House $ - Digital Programs Social Networking $0- In House Promotion $0- In House Promotion Online Advertising $0- In House Promotion $0- In House Promotion Direct Marketing Email Newsletter $0- In House Promotion $0- In House Promotion Mobile Application $ 100,000.00 Mobile Competition $ 750,000.00 SEO/Keyword Purchase $ 100,000.00 Total Digital/Online $ 950,000.00
  • 96. Print Media Costs Print Programs Endemic Food Publications Full Page 12x Rate Number of runs Food & Wine $ 75,700.00 12 $ 908,400.00 Bon Appetit $ 127,814.00 12 $ 1,533,768.00 Rachael Ray Magazine $ 135,000.00 12 $ 1,620,000.00 Paula Dean Magazine $ 51,180.00 12 $ 614,160.00 Lifestyle Publications Martha Stewart Living $ 145,000.00 7 $ 1,015,000.00 Family Circle $ 254,600.00 7 $ 1,782,200.00 Parenting $ 127,905.00 7 $ 895,335.00 Women's Health $ 161,090.00 7 $ 1,127,630.00 Marie Claire $ 120,240.00 7 $ 841,680.00 Self $ 158,434.00 7 $ 1,109,038.00 Allure $ 125,135.00 7 $ 875,945.00 O Magazine $ 125,613.00 7 $ 879,291.00 Male & Student Publications Cigar Afficianado $ 26,780.00 4 $ 107,120.00 Local Student Mags $ 1,750.00 60 $ 105,000.00 Total Print $ 13,414,567.00
  • 97. Event & PR Costs Community/Event Programs Summer Festival and Launch Party $ 1,500,000.00 College Cook-off Competition and Special Series in partnership with MTV $ 2,000,000.00 Total Community/Event $ 3,500,000.00 PR PR Firm Costs for Media Relations $ 400,000.00 Full-Time Community Manager (Facebook, etc.) $ 200,000.00 Total PR $ 600,000.00
  • 100. Market Research Plan Issues to be Researched - Attractiveness of Cooking Channel talent - Areas of interest - Viewing habits - Cooking habits - Awareness and opinion of Food Network - Awareness and opinion of Cooking Channel Timing & Cost - On-going research through social network programs - 4 runs: early May (pre-launch); August; January/February (just following holidays); May 2011 (comparison against full year progress) - Cost: approximately $150,000 - $200,000 ($37,500 - $50,000 per run)
  • 101. Marketing Metrics • Ratings • Website traffic, time spent on website • Mobile app downloads • News/blog mentions of Cooking Channel and talent • Facebook/social media followers
  • 102. Risks & Hedges Risks • Change in consumer taste • Programming attractiveness • Cannibalization/confusion • Increased competition • Weather for summer festival and college cook-off • Liability issues with colleges • Budget cuts Hedges • Unique focus on food as a network, not just a show • Initial programming based on existing international successful shows • Gives opportunity to test programming online • Structure of programming to appeal to different audiences at different times • Alternative indoor locations and/or tents for events • Cut back on print spending in less food-focused publications
  • 103. Marketing Plan for the: Cooking Channel Presented by Kathleen Curtin and Jennifer Hoffmann NYU Stern Langone Program For Professor Michelle Greenwald: Advanced Marketing Planning and Strategy, Spring 2010

Editor's Notes

  1. * freepress.net, Dow Jones Factiva
  2. Daily Variety, 28 Dec 2009
  3. *IBIS World, US Cable Networks Feb 2010, June 2009 data
  4. *IBIS World, US Cable Networks Feb 2010, June 2009 data
  5. - due to sluggish growth in 2010, with improvement for 2011 onward *IBIS World, US Cable Networks Feb 2010, June 2009 data *IBIS World, US Cable Networks Feb 2010, June 2009 data
  6. *IBIS World, US Cable Networks Feb 2010, June 2009 data
  7. Jon Steinlauf, senior VP of ad sales for Scripps Networks, says Scripps' auto business is already up 40% year-over-year, with Hyundai, Ford and BMW on-air. The sector is bouncing back as Toyota's rivals see an opportunity to take share by getting their messages on-air, Steinlauf says: “Automotive and retail are gaining momentum.” In the first half of 2009, Scripps bore the brunt of the recession as people stopped spending on housing products while automotive, financial-services and home-goods retailers cut back on ad spending. In the second half of the year, the lifestyle player saw a change in its ad category mix. Consumer packaged goods (CPGs) is now Scripps' No. 1 category of advertiser. “We have a new relationship with CPGs,” Steinlauf says. “They've been able to get on [air] in a big way, and we're likely to see that continue.” (B&C, 22 Feb)
  8. *(Multichannel News, 22 Feb 2010) **(Broadcasting & Cable, 22 Feb 2010)
  9. Travel Channel is the place for consumers to satisfy their urge to go, see and do. Through the engaging storytelling and unique perspectives of its on-air personalities, the Travel Channel creates travel content that inspires, entertains and taps into the human desire to experience new things, explore new places and engage with interesting people and cultures. It’s a condition known as the Travel Bug, and the Travel Channel encourages everyone to Catch It!
  10. Discovery Communications (Nasdaq: DISCA, DISCB, DISCK) is the world's number one nonfiction media company reaching more than 1.5 billion cumulative subscribers in over 180 countries.  Discovery empowers people to explore their world and satisfy their curiosity through 100-plus worldwide networks, led by Discovery Channel, TLC, Animal Planet, Science Channel, Investigation Discovery, Planet Green and HD Theater, as well as leading consumer and educational products and services, and a diversified portfolio of digital media services including HowStuffWorks.com.
  11. With more breakout stars and critically acclaimed original series than any other network on cable, Bravo's original programming — from hot cuisine to haute couture — delivers the best in food, fashion, beauty, design and pop culture to the most engaged, upscale and educated audience in cable.
  12. Including additional marketing and remixing following Artisan Entertainment’s purchase of the licensing rights, the final budget was estimated to be $500 - $750K (wikipedia.org)
  13. Digital Kitchen worked with HBO on the creative.
  14. http://www.splendad.com/ads/show/3542-Discovery-Channel-Deadliest-Catch-Season-6-Rise http://www.splendad.com/ads/show/3248-Discovery-Channel-Mega-Builders
  15. http://www.bravotv.com/watch-what-happens-live/videos/top-chef-fan-fave
  16. http://www.bravotv.com/watch-what-happens-live/videos/top-chef-fan-fave
  17. http://www.metacafe.com/watch/2614097/ramsays_kitchen_nightmares_trailer/
  18. To reach students age 25-34, Cooking Channel is the lifestyle network that combines the best of food and entertainment which is good because it introduces cooking and food culture in a youthful and edgy/fashionable format. To reach working professionals age 25-44, Cooking Channel is the lifestyle network that connects you with food through cooking, dining and travel which is good because it enriches your life with a passionate knowledge of food. To reach parents age 34-44, Cooking Channel is the lifestyle network that provides a fresh take on food programming which is good because it helps the aspirational cook to nourish their families and communities.