Hill's Science Diet Media Plan Briefing
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Hill's Science Diet Media Plan Briefing
- 1. April 22, 2014 HILL’S SCIENCE DIET DOG FOOD 2014 MEDIA PLAN BRIEFING 1
- 3. PLAN OVERVIEW For the June 2014 through May 2015 fiscal year our marketing objective is tor increase sales by 10 percent. To get this accomplished we have scheduled advertising over three different mediums; cable television, magazine and radio, spread evenly throughout each month. Special promotions are planned for August 2014, December 2014 and April 2015 to aid in the increase of sales over the fiscal year. 3
- 5. TABLE OF CONTENTS • Plan Overview 2 • Table of Contents 5 • Situation Analysis 6 • SWOT Analysis 11 • Marketing Objectives 13 • Communications Objectives 15 • Media Strategy 17 • Media Parameters 19 • Media Tactic 24 • Media Mix 40 • Scheduling 43 • Budgeting 44 • Flowchart 46 5
- 7. SITUATION ANALYSIS – COMPANY • Created in 1939 • Dr. Mark L. Morris Sr. • Buddy – guide dog • Burton Hill of Hill Packing Company • 1976 bought by Colgate-Palmolive • Grown at average annual rate of 1.9% to $1.2 billion 7
- 8. SITUATION ANALYSIS – COMPETITION $- $10,000,000.00 $20,000,000.00 $30,000,000.00 $40,000,000.00 $50,000,000.00 $60,000,000.00 $70,000,000.00 Competitive Spending Analysis Source: 2012 CMR Data 8
- 9. SITUATION ANALYSIS - COMPETITION 9
- 10. SITUATION ANALYSIS – CUSTOMER • “Pet Parents” • Women are normally pet parents • Buy premium dog food • 76% buy food formulated to dog’s lifestyle • 69% buy food with added health benefits • 51% buy food that addresses weight loss or maintenance 10
- 11. SWOT 11
- 12. SWOT • More than 50 different Science Diet brand pet foods • Global brand, sold in 80 different countries • Bad reputation • Dog food sales strong • Pets are considered family members • Pet food prices outpace human food prices 12 Helpful Harmful ExternalInternal
- 14. MARKETING OBJECTIVE For the June 2014 through May 2015 fiscal year the objective is to increase sales of Hill’s Science Diet dog food by 10% with a $30 million budget. 14
- 16. COMMUNICATIONS OBJECTIVES Reach: 75.8 Frequency: 3.0 Continuity: Active in markets throughout the entire fiscal year Impact: Generate awareness of the product through the help of three promotions 16
- 18. MEDIA STRATEGY Our overall media strategy is to build awareness of Hill’s Science Diet using national cable television, supported with radio, general interest magazines and promotions 18
- 19. Target Audience, Timing, Budget, Geography MEDIA PARAMETERS 19
- 20. TARGET AUDIENCE • Adults age 18-49 • Associates degree or higher • Household Income $60k+ 20
- 21. TIMING • Even distribution of ads throughout June 2014-May 2015 fiscal year • Three promotional periods • No seasonality involved 21
- 22. BUDGET • $30 million • Funds for consumer advertising media expenditures and promotions • Production and talent expenses not included 22
- 23. GEOGRAPHY • National campaign only 23
- 24. 24 MEDIA TACTICS
- 25. MEDIA TACTICS – DOGGY BREAKFAST • Free meal for dog owners and dogs • Placard in front of Petco and advertising on web page • Serve dogs samples of product 25
- 26. MEDIA TACTICS – DOGGY BREAKFAST • Budget - $250,000 • Begins August 2014 • CPM - $42.50 • Total Impressions – 5,882,352 26
- 27. MEDIA TACTICS – QR CODE QR Codes will be placed near Hill’s Science Diet displays in Petsmart and Walmart. Upon scanning codes customers will be given a survey about their dog and a 20% off coupon to show cashier at checkout on day of purchase. 27
- 28. MEDIA TACTICS – QR CODE • Budget - $250,000 • Begins December 2014 • CPM - $42.50 • Total Impressions – 5,882,352 28
- 29. MEDIA TACTICS – SELFIE CONTEST • Pet parents will post a selfie of their dog on Facebook • “Likes” decide the winner • Year supply of Hill’s Science Diet dog food 29
- 30. MEDIA TACTICS – SELFIE CONTEST • Budget - $250,000 • Begins April 2015 • CPM - $42.50 • Total Impressions – 5,882,352 30
- 31. 31 MEDIA TACTICS – NET CABLE
- 32. MEDIA TACTIC – NET CABLE • National Geographic and ESPN on Primetime and Early Fringe • Total Cost - $7,755,909 • 30 second spots • 533,232,000 total impressions • CPM - $14.55 32
- 33. 33 MEDIA TACTICS – MAGAZINES
- 34. MEDIA TACTICS – PEOPLE MAGAZINE • Adults 18-49: 61% comp. • Attended/graduated college: 61% comp. • $60,000+ HHI: 55% comp. • Total Adults: 42,707,000 34
- 35. MEDIA TACTICS- TIME MAGAZINE • Median Age: 48 • Male/Female%: 55/45 • Att/Grad College: 12,357,000,000 • Median Income: $72,131 35
- 36. MEDIA TACTICS – NATIONAL GEOGRAPHIC MAGAZINE • Median age: 46.9 years • Graduated college: index of 132 • Post graduate degree: index of 143 • Median HHI: $66,446 36
- 37. MEDIA TACTIC – MAGAZINES • Total Cost - $15,648,768 • Full page, four color • 1,096,934,400 total impressions • CPM - $1.43 37
- 38. 38 MEDIA TACTICS – RADIO
- 39. MEDIA TACTICS – RADIO • Total Cost - $5,839,368 • 60 second spots • 1,797,753,600 total impressions • CPM - $3.25 39
- 40. MEDIA MIX 40
- 41. MEDIA MIX – BUDGET Cable-Primetime Cable-Early Fringe Radio-AM Drive Radio-PM Drive Magazines-General Interest Promotions 41
- 42. MEDIA MIX – IMPRESSIONS Magazines - General Interest Cable - Primetime Cable - Early Fringe Radio - AM Drive Radio - PM Drive Promotions 42
- 43. SCHEDULING 43
- 45. BUDGET SUMMARY CHART Media Budget Impressions CPM Total % Cable Early Fringe $1,801,260 228,528,000 $7.88 6.01% Cable Prime $5,954,649 304,704,000 $19.54 19.85% Radio-AM Drive $3,468,168 1,005,523,200 $3.45 11.56% Radio-PM Drive $2,371,200 792,230,400 $2.99 7.91% Magazines- General Interest $15,648,768 1,096,934,400 $1.43 52.17% Promotions $750,000 17,647,058 $42.50 2.5% Totals 29,994,045 3,445,567,058 $8.71 100% 45
- 46. FLOWCHART 46
- 47. FLOWCHART 47
Editor's Notes
- 1939 was the year that Veterinarian Dr. Mark L. Morris Sr. began the journey to creating the first therapeutic dog food. His theory was tested on Buddy, one of America’s fist seeing eye dogs who had kidney problems. In the 1940s it was difficult to grow a business, packing, distributing and canning issues led to Dr. Morris getting into contact with Burton Hill. Instead of shipping dog food in glass jars, Hill canned and shipped the food. This partnership let Morris spend more time in the lab while Hill took care of the distributing. The name grew into the brand that we know today. IN 1976 Colgate-Palmolive bought out Hill’s Pet Nutrition and under the new ownership the companies revenue has continued to grow at an average annual rate of 1.9% a year to a $1.2 billion company.
- The top 5 competitors that Hill’s Science Diet has in the dog food world are Purina, Blue Buffalo, Iams, Cesar and Eukanuba. Purina spent about 6 times more than Hill’s Science Diet with their total expenditures in 2012 of $60,684,900. Blue Buffalo spent a little over three times as much as Hill’s with their total expenditures at $34,369,800. Iams spent $28,550,400 while Cesar’s spent $ $23,053,100 and Eukanuba spent $11,842,300. Hill’s Science Diet total media expenditures for 2012 were $10,565,100.
- Even though the overall pet food consumption is driven by pet ownership, household income, product prices and nutritional concerns there are new arising factors in purchasing pet food. There is a growing trend for pet consumers to see themselves as “pet parents”
- Helpful, Internal: With more than 50 different Science Diet brand pet foods being sold in 80 different countries this draws to a conclusion that the brand will be more successful. Harmful, Internal: When people post bad reviews on a company’s website it can be extremely harmful to their reputation causing sales to decrease. Helpful, External: Dog food sales being a strong point in the market right now definitely helps out Hill’s Science Diet. When pet owners see their pets as more than just pets and more like family members they are more likely to spend more money on the food the pets consume. Harmful, External: Pet food prices outpace human food prices. Even though pet owners will spend more money on their pets food, price isn’t totally out of context when it comes to deciding what kind of food to buy their pets.
- For the June 2014-May 2015 fiscal year I have accomplished a reach of 75.8 and a frequency of 3.0. Since dog food needs to be bought all year round I have chosen to stay active in all of my chosen markets throughout the entire fiscal year. With the help of my three promotional tactics I hope to increase the overall sales of Hill’s Science Diet dog food by ten 10 percent.
- With researching in the Simmons reports I have decided that the target audience for the June 2014-May 2015 will be A1849, with an education level of having an Associates Degree or higher and a household income of $60,000 or more.
- Every media is scheduled to run monthly starting in June 204 and running through May 2015. The first promotion is scheduled for August 2014, second is scheduled for December 2014 and the final promotion is scheduled for April 2015.
- The overall budget for the June 2014-May 2015 fiscal year is $30,000,000. All of the funds are for consumer advertising media expenditures and promotions are included in this budget. Yet, production and talent expenses are not included. Basically, all of the $30,000,000 is for consumer media, except for the $750,000 that is taken out for the three promotions throughout the year.
- For the June 2014-May 2015 fiscal year media plan we have decided to run only a national campaign.
- Hosting community events shows your dedication to the area and it will increase sales. Invite dog owners to bring their dogs. Advertise with a placard in front of Petco and on Hill’s Science Diet’s Webpage. Serve the dogs samples of HSD food based on their age (since HSD has approximately 30 different formulations for puppies, adult, mature and senior dogs). While the dogs are sampling the product provide the “pet parent” with doughnuts, bagels and coffee. Ask them if they would like to sign up for the HSD newsletter to receive a free bag of dog food catered to their dog.
- To calculate total impressions you divide the budget ($250,000) by the CPM ($42.50) and then multiply by 1,000 to get the total impressions of 5,882,352
- According to the Simmons report Hill’s Science Diet customers are 8% (108 index) more likely to make a purchase while inside a department or discount store. Placing QR Codes near the displays give the customer an opportunity to scan and participate in the survey while looking over the product. After the survey, the customer will be given a 20% off coupon for that day only to be used on Hill’s Science Diet dog food that caters to their dog. In 2012, advertisers spent a small amount of advertising revenue on mobile media and are seeking to connect with more mobile users. The QR Code promotion ties in directly with that.
- To calculate total impressions you divide the budget ($250,000) by the CPM ($42.50) and then multiply by 1,000 to get the total impressions of 5,882,352
- Starting in April 2015 people who “like” Hill’s Science Diet on Facebook will be give an opportunity to win an entire year of Hill’s Science Diet dog food for free. The pet parents will post a selfie of their dog in the Facebook album “Selfies for Spring”. The deadline to enter is April 6, 2015. After the deadline voting will be opened to the public and whichever dog selfie has the most likes by April 30, 2015 will win the years supply of Hill’s Science Diet dog food.
- To calculate total impressions you divide the budget ($250,000) by the CPM ($42.50) and then multiply by 1,000 to get the total impressions of 5,882,352
- The Simmons report shows a vertical % of 87.7% for TV Prime Time with an index of 111 and for TV Early Fringe a vertical% of 69% and 107 index. I decided to run on those dayparts on Animal Planet and ESPN. I chose Animal Planet because of it’s high index of 138, meaning that people are 38% more likely to reach a Hill’s Science Diet consumer. While ESPN had an index of 132 resulting in 32% more of a chance to reach HSD consumers.
- To calculate CPM divide $7,755,909 (budget) by 533,232,000 (impressions) and multiple 1000 to reach the conclusion that CPM for all Net Cable TV purchased is $14.55
- By looking at the Simmons report of Hill’s Science Diet users and Magazines I chose to buy in People, Time and National Geographic because of their high index and vertical percentage numbers.
- Based on the media kit information provided by people.com, I believe that People is a good choice based on the percentages for our target audience.
- Based on the media kit information provided by time.com, I believe that Time Magazine would be a good choice based on the similarities from our target audience and their readership.
- Based on the media kit provided by nationalgeographic.com, I believe that National Geographic Magazine would be a good choice based on the similarities from our target audience and their readership.
- To calculate CPM divide $15,648,768 (budget) by 1,096,934,400 (impressions) and multiple 1000 to reach the conclusion that CPM for all Magazine purchased is $1.43
- By looking at the Simmons report of Hill’s Science Diet users and radio day parts I chose to buy in AM Drive and PM Drive because of their high index and vertical percentage number. With our target audience I also chose to run AM and PM drive time only because of the education level. Most people with high levels of education are driving to and from work between these hours and I believe we would be able to reach them through this medium.
- To calculate CPM divide $5,839,368 (budget) by 1,797,753,600 (impressions) and multiple 1000 to reach the conclusion that CPM for all Net Cable TV purchased is $3.25
- The total budget for the June 2014-May 2015 fiscal year is $29,994,045. The budget for Cable-Primetime is $5,954,649. For Cable-Early Fringe the budget is $1,801,260. The Magazine-General Interest budget is $15,648,768. The two different radio day parts we have chosen’s budget are as follows: Radio-AM Drive - $3,468,168 and Radio PM-Drive $2,371,200. The final make-up of the budget is Promotions, coming in at $750,000.
- There are 3,445,567,058 total impressions that we have been able to produce through this media plan. The breakdown of the 6 different mediums are as follows: Magazines – 1,096,934,400, Cable-Primetime – 304,704,000, Cable-Early Fringe – 228,528,000, Radio-AM Drive – 1,005,523,200, Radio-PM Drive – 792,230,400, Promotions – 17,647,058.