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A Marketing Plan
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Quaker Chewy Quaker Chewy Quaker Chewy Quaker Chewy 2005 Marketing Plan2005 Marketing Plan
Jenna BakerJenna BakerKelly Bushnell
St h i S lliStephanie SullivanTeo Tertel
Situation AnalysisSituation AnalysisNature of Industry Nature of Industry (Breakfast/Cereal)(Breakfast/Cereal)
Health and wellness trend throughout industryindustryPositioning towards childrenConvenience and portability importantConvenience and portability importantTotal new product introductioni i i 2002increasing since 2002
Situation AnalysisSituation AnalysisN t f C tN t f C tNature of CategoryNature of Category
Customers looking for bar that’s healthy and great tastingIncreased market segmentation ConvenienceConvenienceMarket to womenDollar sales increasingDollar sales increasing
Situation AnalysisSituation AnalysisE i tE i tEnvironmentEnvironment
National Economy becomes strongerNational Economy becomes strongerAgriculture industry
A i lt t l i d 28% Agriculture export surplus increased 28% from 2003US Regulations require increased soil US Regulations require increased soil conservation
Situation AnalysisSituation AnalysisC titiC titiCompetitionCompetition
Situation AnalysisSituation AnalysisBrand’s Current SituationBrand’s Current Situation
Current Position
Features of the Chewy Granola BBar
Situation AnalysisSituation AnalysisC t UC t UCurrent UsersCurrent Users
People: 25-54People: 25 54WomenH h ld i $50 000 d Household income $50,000 and aboveMarried with children 2-17Home ownersMedia
Nature Valley Nature Valley (Q k ’ t tit )(Q k ’ t tit )(Quaker’s top competitor)(Quaker’s top competitor)
Increasing sales and share in Increasing sales and share in industryDistribution could be better Distribution could be better Healthy/Active PositioningBig picture Big picture
Not industry leaderMost promising growth Most promising growth Most promising market potential pote t a
Target Dollar Sales and Market Target Dollar Sales and Market Sh 2005Sh 2005Share: 2005Share: 2005
2004’s Dollar Sales: $111,365,5002004 s Dollar Sales: $111,365,500Decreased 6.1%
Proposal for 2005Goal: $126 250 000 in dollar salesGoal: $126,250,000 in dollar sales13.37% increase from 2004
Market ShareMarket Share1% increase from7.6 % to 8.6%7.6 % to 8.6%
Dollar Sales Using Current Growth Percentages
100 000 000120,000,000
s
60,000,00080,000,000
100,000,000
ar S
ales
20042005
-20,000,00040,000,000
Dol
la 2005
QuakerChewy
Kellogg'sNutri Grain
NatureValley
Kellogg'sRice
GeneralMills Milk
PrivateLabel
KrispiesTreats
andCereal
Brands
Target MarketTarget Market
Primary Primary Demographic: Parents (Adults) 18 to 49, HHI $50,000+, Child Age 2-17 yrs oldHHI $50,000+, Child Age 2 17 yrs oldPsychographic: Parents seeking to encourage a healthy lifestyle in g y ythemselves and their children
SecondaryyChild Age 2-17 yrs old with active lifestyley
Strategies and TacticsStrategies and TacticsStrategies and TacticsStrategies and Tactics
ProductProductPriceP ti ( ti iti d b d t)Promotion (activities and budget)Place
Strategies and TacticsStrategies and TacticsP d tP d tProductProduct
Strongly associated with Quaker Oatmeal g y QbreakfastPopular among children and womenMarket leader in granola barsMarket leader in granola barsFlavors:
ButterfingerButterfingerChocolate chipPeanut butter chocolate chipS’moresS’moresVariety pack
Changing conceptual g g pproduct image
Strategies and TacticsStrategies and TacticsP iP iPricePrice
10 cents increase for promoted: $3.53p $help support larger adv expendituresWithout risking turning away current customerLess than average promoted price increase for industry
8 cents increase for non-promoted: $4 73non promoted: $4.73
Lowest non-promotedMaintain price advantage p g
Base and Promoted Price by Brand 20042004
Category
Nutri Grain
Quaker Chewy
nds
AvgNonPromoted
Nature Valley
Nutri Grain
Bra
n Avg Non-PromotedPrice Per VolumeAvg Promoted Price
Milk N Cereal
Rice Krispies Treats Per Volume
0 2 4 6 8
Private Label
0 2 4 6 8
Dollars
Base and Promoted Price by Brand for 2004
7
5
6
3
4
5
olla
rs
Avg Promoted Price PerVolume
A N P t dP i
2
3Do Avg Non-Promoted Price
Per Volume
0
1
0 2 4 6
Part I: Marketing Factors That Affect FrequencyEstablished Brand 0 2
Ostrow Model
Established Brand -0.2High Market Share -0.2Dominant Brand -0.1High Brand Loyalty -0.1Long Purchase Cycle 0.2Product Used Occasionally 0.2Need to Beat Competition 0.2Advertising to Older Consumers/ Children 0.2
Part II: Copy Factors That Affect FrequencyPart II: Copy Factors That Affect FrequencySimple Copy 0.1Copy More Unique than Competition 0.1Continuing Campaign 0.2Product Sell Copy 0.1Si l Ki d f M 0 2Single Kind of Message 0.2To Avoid Wear out: New Messages -0.2Larger Ad Units -0.2
Part III: Media Factors That Affect Frequencyq yLower Ad Clutter 0.1Compatibility Editorial -0.1Attentiveness High -0.2Few Media Used -0.2Opportunities for Media Repetition 0 2Opportunities for Media Repetition -0.2
Sum of Factors Affecting Frequency -0.1Estimated Frequency for Quaker's Media Plan 2.9
Strategies and TacticsStrategies and TacticsPlPlPlacePlace
Ostrow model suggests frequency of 2 9Ostrow model suggests frequency of 2.9Mature well known brand More complex advertising messageMore complex advertising message
National plan to optimize reachNational plan to optimize reach
Spot advertisingfor North Central USo o t Ce t a US
PromotionPromotionAd ti iAd ti iAdvertisingAdvertising
Increase in Advertising Expenditures
Major Brands by Ad Spending 2004
20 225ns 20.2
8.97 8.833.21
0 675101520
ars
in M
illio
n
0.6705
Kellogg'sNutriGrain
Kellogg'sRice
Krispies
GeneralMills MilkN Cereal
NatureValley
Granola
QuakerChewy
Granola
Dol
la
CerealBars
Cereal Bars Bars Bars
Why $1 million?Why $1 million?
PromotionPromotionM di SM di SMedia ScopeMedia Scope
Outdoor MediaOutdoor MediaInternetM iMagazineTelevisionNontraditional Media
PromotionPromotionO td M di Ch lO td M di Ch lOutdoor Media ChannelsOutdoor Media Channels
Heavy viewers more likely to y ypurchase Promotes outdoor healthy lifestylePromotes outdoor healthy lifestyle
Signage: features Quaker Chewy Granola Bars as on-the-go snack Granola Bars as on-the-go snack
PromotionPromotionI t tI t tInternetInternet
Website has low popularity ratingWebsite has low popularity ratingHeavy internet users are 16% more likely to purchase Quaker Chewylikely to purchase Quaker ChewyDevelop better website
User-friendlyInteractive gamesSweepstakes
PromotionPromotionM iM iMagazineMagazine
Magazine readers more likely to purchase Magazine readers more likely to purchase Quaker ChewyImportant to integrate Quaker Chewy po ta t to teg ate Qua e C e yadvertisements into magazinesConvince parents snack bars are healthy p yand beneficial to their children and them as well
PromotionPromotionT l i iT l i iTelevisionTelevision
2004 MRI data shows moderate to light television watchers are more likely to te e s o atc e s a e o e e y topurchase Quaker Chewy
Use specific channels and timespTelevision allows specific targetingWomen:Women:
Children:Children:
PromotionPromotionNN T diti l M diT diti l M diNonNon--Traditional MediaTraditional Media
Sponsored Sporting EventsSponsored Sporting EventsSoccer TournamentsLittle League gamesLittle League gamesSummer Camps
Key values Key values Health and active exercise
PromotionPromotionNN T diti l M diT diti l M diNonNon--Traditional MediaTraditional Media
Prize Point systemPrize Point systemPoints for products purchased I ti t i i iIncentives create win-win scenario
Users login and play for di / idiscounts/promotionsGenerates sales, brand recognition
PromotionPromotionNN T diti l M diT diti l M diNonNon--Traditional MediaTraditional Media
MarathonsMarathonsHelps target womenHelps promote health and safetyHelps promote health and safety
In-store PromotionsF t ith i d ti 3 ti Feature with price reduction 3 times a yr Display with no price
d ti d i reduction during summer
% Dollars by Merchandising Condition 2004
25
30
15
20
25
Dol
lars
Disp OnlyFeat Only
5
10
15
% o
f D
Feat OnlyPrice Red Only
0
5
ory wy ain es eal
lley bel
Catego
ryQua
ker C
hewy
Nutri G
raiRice
Krispie
sMilk
N Cerea
Nature
Valley
Private
Labe
Q R M
Brands
PromotionPromotion
Quaker targets active lifestylesMedia TimingMedia Timing
Quaker targets active lifestylesExpenditures highest in summer, moderate in fall and spring, and lightest in winterp g, g
Quaker Seasonal Advertising Expenditures for2004 and 2005
500 000
400,000
500,000
200,000
300,000
Do
llars 2004
2005
0
100,000
0Winter Spring Summer Fall
SeasonSeason
Questions?Questions?Questions?Questions?
Thank You!Thank You!