grape--nuts

Lauren RahmanNicole Mullet

Brandon Mead

Life—Better with grape-nuts

Industry History

• First Mass Produced Cereal

– Dr. John Harvey Kellogg

– 1906

– Flakes

• Consistent Growth and Expansion

• Influx of Brands: 1997

– Industry became extremely concentrated

– 200 RTE cereals

Industry Key Features

• Monopolistic Competition

– Few Top Competitors

– Wide Array of Brands

– Aggressive Introduction of New Products

• High Price-To-Cost Margin

• Large Advertising-to-Sales Ratio

Competitors

Health Cereal Category

• Kellogg

– Mini-Wheats

– Raisin Bran

• Special K

• Kashi

• General Mills

– Fiber One

Grape-Nuts History

• Created

– 1898

– Charles W. Post

• Consistent Growth

• Marketing

IntroHealthy FamiliesNatural Cereal

Euell GibbonsWill Rogers Jr.testimonials

Current Marketing

• Slogan: “That takes Grape-Nuts”

• Target Market

• Positioning

• Marketing Mix

• Current Market Share: Less than 2%

Brand Problems

• Un-Popular Taste

• Less Healthy Than Some Alternatives

• Lack of Product Variety

• Outdated Image

Brand Users

Two biggest general user profiles:

• “Educated, affluent and upper middle class families in established suburbs and new suburbs/ ex-urban towns respectively.”

• “Lower middle class to downscale, factory and farm workers in factory towns and mid-American agricultural communities respectively.”

As stated in: (Northwestern 10)

Age: 35-44

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

GN Users by Age

18-24

25-34

35-44

45-54

55-64

65+

Gender: 48% Adult Females

0%

10%

20%

30%

40%

50%

60%

GN Users by Gender

Children

Adult Males

Adult Females

Income: 53% $35,000 or higher

0%

10%

20%

30%

40%

50%

60%

GN Users by Income

$35+

$25-34.9

$15-24.9

$15-

Users Decide Based on Health

0

10

20

30

40

50

60

70

80

90

100

Users Non-Users

High in Protein

High in Vitamins

Low in Fat

Low in Calories

Low in Sugar

User Psychographic Profile

• Health-Conscious

• Somewhat Trendy

• Independent/In Control

• Leaders

• Intelligent

• Outdoors

• Traditional/Family-Oriented

Consumer Decision Making

• Morning Routine/Brand Loyalty

– Our goal

• Attitude/Beliefs in Popular Culture

– Trend towards health-consciousness

• Affordability

– Increasing brand value

Analysis: Strengths & WeaknessesStrengths

• Healthy

• Tradition

• Trustworthy

Weaknesses

• Flavor

• Out-dated image

Analysis: Opportunities & Threats

Opportunities

• Product line expansion

• Partnership with other food products

• Trend towards health-conscious eating

Threats

• Tough competition

• Wide variety of competitors

Our Campaign

Breakfast cereal that goes beyond the ordinary breakfast, doubling with many other foods and improving many life situations-making the consumer’s life better in many ways.

Life-Better with Grape-Nuts.

Big Idea & Slogan

Approach: Cognitive

• Impression and Communication

– Relevant

– Versatile

– Beneficial

– Healthy

• Solves the Un-Popular Flavor Issue

• Reaches Beyond Breakfast-Eaters

• Appeals to Wise Mothers

• Extendable

Big Idea

For women with families, Grape-Nuts is the breakfast cereal that provides versatility, health, and improved well-being to them and their family.

Positioning

• Women: food purchase decision-makers

• 25-45

• With Families

• Suburban to Rural

• Mid-High Income

Target Market: Demographics

• Health-conscious

• Independent

• Leaders

• Active lifestyle (on the go)

• Practical

• Physically fit

• Outdoors

• Trendy

Target Market: Psychographics

• Generate increased consumer interest and buying activity

• Generate media attention

• Popularize the Grape-Nuts message by creating shared experiences among consumers

• Bring Grape-Nuts above 2.5% in market share

Campaign Goals: Short-Term (1 year)

• Create and sustain consumer loyalty

• Change negative Grape-Nut brand perceptions

• Bring Grape-Nuts above 3.0% in market share

Campaign Goals: Long-Term (3+Years)

• Television

• Website Ads

• Print

• YouTube

• Website

• Social Media

Marketing Mix

Initial Partnerships:

• Every Day w/ Rachel Ray

• Food Network

• Good Housekeeping

• Cooking Light

• Vegetarian Times

Website & Print Packages

Website Ads Videos Social Media

Print Ads Website Purchase

Exposure Engagement Action

Interactivity

Website

Print Advertising

• Event Marketing

– Faux Food Vendor

• Philanthropy

– Riley Children’s Hospital

– Help the Hungry

– Live Strong

– Big Brother Big Sister

Public Relations

• Yoplait

• Breyers

• Bisquik

Partnerships & Co-Branding

In-Store Samples

• Recipes

Direct Mailing

• Recipe books and coupons

Direct Marketing

Specific

• Redeemed Coupons

• Per Click

• Video Hits

• Social Media Monitoring

General

• Sales

• Measuring Market Share

Measuring Effectiveness

Future Plans

grape--nuts