CRAYOLA DIY Strategy Targets Millennials

Diana . Carolyn . Maury
Wednesday, 21 August, 13

INDUSTRY REVIEW

REVENUE
CRAYOLA IS PRIVATELY OWNED WITH
$50-$80MIN SALES IN CANADA (2012)
Revenue Market Size Market Share Brand Share
SOURCE: INDUSTRY CANADA- CANADIAN COMPANY CAPABILITIES

THE WRITING INSTRUMENTS MARKET IS
$237MIN CANADA (2012)
MARKET SIZE
SOURCE: PASSPORT - WRITING INSTRUMENTS IN CANADA, EUROMONITOR INTERNATIONAL

MARKET SHARE
IN WRITING INDUSTRY 15%
4%
9%
11%
26%
36%
Newell Rubbermaid
BIC
Crayola
Staples
Pentel
Others
1.COLOURING
2.MARKERS
3.PENCILS
4.PENS
5.WRITING ACCESSORIES
6.WRITING INSTRUMENTS

27%9%
9%
11%
18%
26%
BIC
Sharpie
Crayola
Papermate
Staples
Others
BRAND SHARE
CRAYOLA OWNS THE
COLOURING SEGMENT WITH
70%MARKET SHARE IN CANADA (2012)

INDUSTRY TRENDS
INDIRECT
EFFECTS OF
TECHNOLOGY
CAUTIOUS
CANADIAN
CONSUMERS
WRITING INSTRUMENT
MARKET REACHED
MATURITY
1% GROWTH ($10M IN 5Y)

ARTISTIC
FUNCTIONAL
ADULTSCHILDREN
Success in this mature
market is achieved by
attaching additional value
to the physical product

Sharpie Roseart Prismacolor
Competes on PriceCompetes on Quality
$10M$56M $6M
Competes on Quality

BRAND
COMMUNICATIONS

1960’s -70’s 1980’s 1990’s 2000’s
“CRAYOLA
CRAYONS,
THEY WORK
ON BRAINS
NOT
BATTERIES”
“CRAYOLA
DRAWS YOU
CLOSER”
“YOU DON’T
JUST DRAW
WITH THEM,
YOU ROCK
AND ROLL
WITH THEM”
“THERE’S
ONLY ONE
CHILDHOOD
AND ONLY
ONE
CRAYOLA ”

TODAY
“CRAYOLA
BELIEVES THAT
WHAT IF IS THE
GREATEST
QUESTION IN THE
WORLD”

CRAYOLA
Helping parents and
educators raise
creative...children who
will grow to be
inspired, original
adults.
POSITIONING PERSONALITY
Creative,
Inspirational,
Original and
Trusting

WHY DDB?
CREATIVITYWednesday, 21 August, 13

BUSINESS PROBLEM

BUSINESS PROBLEM
THE BREAK-DOWN
SOURCES:
*IBIS WORLDWIDE, 2012
**STATISTICS CANADA, 2013
PROJECTED
GLOBAL REVENUES
FOR THE NEXT 5
YEARS*
MATURITY TECHNOLOGY RECESSION K-12

BUSINESS PROBLEM
LIFE SPAN
AWARENESS
CONSUMPTION
PURCHASE

BUSINESS PROBLEM
LIFE SPAN
AWARENESS
INCREASE
CONSUMPTIONCONSUMPTION

BUSINESS PROBLEM
LIFE SPAN
AWARENESS
BONUS: GREATER TOP-OF-MIND
AWARENESS THROUGHOUT LIFE
--> LOWER ACQUISITION COSTS

DDB’S CHALLENGE

HOW?
BY BUILDING BRAND RELEVANCE
WITH TEENS AND YOUNG ADULTS
WITHOUT ALIENATING THE CURRENT TARGET
(MOMS, EDUCATORS, KIDS)
SALES OF CRAYOLA PRODUCTS BY
INCREASING THE LTV OF CRAYOLA CONSUMERS.

INSIGHTS

CURRENT ATTITUDES
ASSOCIATIONS
TESTS
88 RESPONDENTS
504 ASSOCIATIONS
Crayons
Colours
Childhood/Nostalgia
Kids/Children
Markers
Fun/Play
Art/Arts & Crafts
Colouring/Colouring Books
Grade School/PreSchool/Kindergarten
Draw/Drawing/Drawings
Creativity and Freedom
Wax
Pencil Crayons
Rainbows
Restaurants
Paint
Paper
Bright/Vibrance
Pictures
The Crayon Box
Crayola DIY
Peeling Wrapper
Crayons up nose
School supplies/Back to School
Family/Bonding Time
Variety
Smell of Crayons
Children Art
Toys
Distribution
Cracking/Breaking in Half
Eating Crayons
Construction Paper
Scissors
Drawing on walls
Chalk
Camp
Write/Writing Material
Pencils
The logo
Oil
Other
0 15 30 45 60SOURCE: PRIMARY RESEARCH 88 RESPONDENTS

LACK OF
AWARENESS FOR
OTHER PRODUCTS
#1: “NO USE”
BARRIERS TO BRAND
RELEVANCE
Other
Pencils
Chalk
ScissorsConstruction Paper
Paper
Paint
Pencil Crayons
Markers
Crayons
SOURCE: PRIMARY RESEARCH 88 RESPONDENTS AGES 18-24, 2013

Drawing on walls
Eating Crayons
Toys
Children Art
School supplies/Back to School
Crayons up nose
Rainbows
Grade School
Colouring
Kids/Children
Childhood/Nostalgia
Crayons
BARRIERS TO BRAND
RELEVANCE
IT’S ALL IN THE
PAST
#2: “FOR KIDS”

WHY DID YOU STOP
USING CRAYONS?
2%
3%3%
3%
4%
10%
12%
13% 17%
34%
88 RESPONDENTS
107 REASONS
Moved on to markers/pencil crayons/other
Other priorities/interests
Lack precision
School no longer required them
Grew out of it
messy
Bad at drawing
not given them anymore at restaurants/planes
not cool
no need
MORE
COMPETITORS
IN THIS SPACE

STRATEGY

OUR STRATEGIC SOLUTION
THE FRAME OF REFERENCE
EDUCATE & OFFER NEW USAGE OCCASIONS TO
MAKE CRAYOLA PRODUCTS RELEVANT TO AN
OLDER DEMOGRAPHIC

ASSOCIATIONS TO
LEVERAGE
Variety
Crayola DIY
Creativity & Freedom
Arts & Crafts
Fun/Play
Childhood/Nostalgia
“CREATIVITY
& FREEDOM”

CRAYOLA’S INNATE QUALITIES
FLIPPING “NO” INTO “YES”
WASHABLE
AFFORDABLE
LUXURY
CONSISTENT
QUALITY
EASILY
ACCESSIBLE
LACK
PRECISION
MESSY NOT
PROFESSIONAL
FOR
KIDS
FUNCTIONAL EMOTIONAL INNATE QUALITIES

IT’S OKAY TO MAKE
MISTKES.
CRAYOLA IS ALL ABOUT
HAVING FUN
AND UNLEASHING YOUR
CREATIVITY.

OPPORTUNITY TO CURATE &
AMPLIFY CONVERSATIONS FROM
THE LONG-TAIL
ENTERTAINING
BEAUTIFUL USEFUL
PROFESSIONAL
USES
NOSTALGIA +
POP CULTURE
ACTIONABLE
SOURCES: HEY WHIPPLE, SQUEEZE THIS, 2013

OUR TARGET LOVES “FIRST”-NESS*
MILLENNIALS/GEN-C (15-35)**
30% OF CANADIAN
POPULATION***
NOSTALGIC, CREATIVE,
47% WANT BRANDS TO PROVIDE INSPIRATION FOR
THINGS TO DO, MAKE, OR BUY.*
PARENTS OF THE FUTURE
SOURCES: TRENDWATCHING.COM**, STATISTICS CANADA 2013***,
BAZAARVOICE.COM 2013*

0
15
30
45
60
30
54
39
4
6
32
CREATIVE VS. ARTISTIC
STRONGLY DISAGREE STRONGLY AGREE
0
15
30
45
60
16
23
35
15
23
21
3

TACTICS + DDB FIT

#1. MICROSITE
ONLINE BRAND
COMMUNITY
EDUCATE TO ENTERTAIN
& TO DISPLAY MORE
USAGE OCCASIONS
DRIVE SALES THROUGH
BRAND ENGAGEMENT

#2. SOCIAL MEDIA CAMPAIGN
YOUTUBE BANNER
TAKEOVERS
#TBT
#THROWBACKTHURSDAY
BUZZFEED
REWIND
63M mentions (2013)

#3. EVENT SPONSORSHIP
FUN
GET
MESSY
COLOURS
AGE APPROPRIATE

PHASE 1 PHASE 2
INTO THE FUTURE
MILLENNIALS/
GEN-C
CRAYONS
FUEL CURRENT
TARGET
BIGGER EXECUTIONS
ALL CRAYOLA
PRODUCTS

THANK YOU

APPENDIX
DUAL TARGETED PRODUCTS DIY CRAFTS
CREATIVE + DIY VS ARTISTIC
CB ANALYSIS
DDB FIT
TESTED EFFECTIVENESS
WHY GEN C
MEET NAHHEEM

CRAYOLA DIY

WHY DOES THIS MATTER?
REACTIVE RESPONSE PROACTIVE RESPONSE
1.TECHNOLOGY*
2.STATIONARY INDUSTRY*
3.BIRTH RATE**
4.RECESSION
INCREASE SALES BY
BROADENING TARGET
(+ LOWER FUTURE
ACQUISITION COSTS)
SOURCES:
*IBIS WORLDWIDE, 2012
**STATISTICS CANADA, 2013
PROJECTED GLOBAL REVENUES NEXT 5 YEARS*

0
15
30
45
60
18
32
30
10
3
5
2
30
54
39
4
6
32
CREATIVE + DIY CRAFTS VS. ARTISTIC
0
15
30
45
60
16
23
35
15
23
21
3
SOURCE: PRIMARY RESEARCH DIY 100 RESPONDENTS AGES 18-24, 2013

FINANCIAL FEASIBILITY: C/B ANALYSIS
COST MIN MAX
MICROSITE $100,000 $150,000
BANNER
TAKEOVER AND
YOUTUBE
$80,000 $100,000
DIRECT MAIL
PIECE AND 20
BLOGGERS FOR
3-4 WEEKS
$70,000 $100,000
COLOUR RUN
SPONSORSHIP
$10,000 $25,000
TOTAL $260,000 $375,000
MARKET SIZE ESTIMATE
TOTAL CANADIANS 34,480,000
CANADIAN INTERNET
USERS (83%)*
28,618,400
MILLENNIAL INTERNET
USERS IN CANADA (41%
OF TOTAL)**
11,733,544
DIY-LOVING MILLENNIALS
IN CANADA***
9,386,835
TOTAL 9,386,835
SOURCE: *WORLD BANK, 2011, **EMARKETER 2010, ***PRIMARY RESEARCH

FINANCIAL FEASIBILITY: C/B ANALYSIS
SITUATION DIY-LOVING
MILLENNIALS IN
CANADA
REGULAR SM
USERS
% REACH MAKES PURCHASE
ONLINE/IN-STORE
PURCHASE VALUE BENEFIT
OPTIMISTIC 9,386,835 70% 20% 30% $20 $7,884,941.4
BASE 9,386,835 70% 10% 30% $20 $3,942,470.7
CONSERVATIVE 9,386,835 70% 5% 30% $20 $1,971,235.35
OPTIMISTIC 9,386,835 70% 20% 30% $10 $3,942,470.7
BASE 9,386,835 70% 10% 30% $10 $1,971,235.35
CONSERVATIVE 9,386,835 70% 5% 30% $10 $985,617.68
OPTIMISTIC 9,386,835 70% 20% 30% $5 $1,971,235.35
BASE 9,386,835 70% 10% 30% $5 $985,617.68
CONSERVATIVE 9,386,835 70% 5% 30% $5 $492,808.84
$260,000 - $375,000
SOURCES:
*VISION CRITICAL, 2013, AVERAGE OF 3 SOCIAL NETWORKING SITES

TESTED EFFECTIVENESS OF IDEA
0
8
15
23
30
-5-4-3-2-10 1 2 3 4 5
01
4
13
20
26
10
1000
0
8
15
23
30
1 2 3 4 5
7
11
19
24
14
6
0
10
3029
51%

BRANDS PROMOTING DIVERSE USAGE
OCCASIONS TO ATTRACT NEW TARGET

WHY DDB CANADA
“MICHAELS HAS INVESTED $20M IN QUEBEC
STORES...THE QUEBEC PUBLIC IS A VERY
CREATIVE CUSTOMER IN CRAFTS” (NEWS
1130)
PUSHING FOR
GLOBAL
EXPANSION.
2013 NEW
USA
WEBSITE,
2014 ROLL
OUT CANADA
& MEXICO
SOURCES: WORLD BANK, 2013

WHY MILLENNIALS/GEN-C
82%OF CANADIAN TEENS AND YOUNG ADULTS
INTERNET USERS ARE WILLING TO SHARE THEIR BRAND
PREFERENCE ONLINE*
41%OF CANADIAN TEENS AND YOUNG ADULTS WRITE
ONLINE POSITIVE REVIEWS**
91%OF PEOPLE HAVE GONE INTO A STORE BECAUSE OF
AN ONLINE EXPERIENCE. (SOURCE: MARKETING LAND)***
SOURCES: *EDELMAN, "THE 8095 EXCHANGE: MILLENNIALS, THEIR ACTIONS SURROUNDING BRANDS, AND THE DYNAMICS OF
REVERBERATION" CONDUCTED BY STRATEGYONE, OCT 14, 2010
**EMARKETER
**MARKETINGLAND, 2012

MEET NAHEEM

CRAYOLA DIY Strategy Targets Millennials

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