Penny BloomCynthia R. Griffis-

PerkinsAshley MetzelMike Plucinski

Jordan SheckmanJames Smith

A PRESENTATION BY

Strengths

S.W.O.T. ANALYSIS

•Annie’s has a wide variety of pasta products

•25% revenue increase in the past year and continues to see expansion in its retail distribution

•Has emerged into an $11 million brand

•Has initiated several community programs

•Can be found in most major grocery and natural food stores

•Rated “Best Mac & Cheese” by Men’s Health Magazine (June 2005)

•New Annie’s Bunny Grahams will appeal to children

•New gluten-free products

Weaknesses

S.W.O.T. ANALYSIS

•Specializes in only pasta and cracker products

•Organic foods tend to be more expensive to the consumer

•Many consider the artificial flavoring present in most food to be better tasting

Opportunities

S.W.O.T. ANALYSIS

•Second-largest macaroni and cheese brand

•Has an ongoing relationship with PBS’s Arthur, on which they can expand

•The organic food market is continuing to grow very rapidly

•The chemicals present in processed foods is hardly a secret

•Natural foods are being offered through many new outlets

•The variety of natural foods available for consumption is expanding

•The demand for natural foods is on the rise than organic

Threats

S.W.O.T. ANALYSIS

•Companies like Hain-Celestial offer health food categories Annie’s does not

•Kraft is still the number one selling macaroni and cheese brand in the United States

•As the number of different organic food products multiplies, there is the risk of consumers feeling overwhelmed and confused about which products they choose

•Though sales of natural foods don’t show signs of slowing down any time soon, there is always the risk that the trend could be a “fad,” and it may burst at any time without warning

Brand Challenge

Annie’s Homegrown currently has a consumer base consisting predominantly of families and college students. Both groups presently have interest in eating healthy and pursuing organic food options, but they do not specifically know the benefits of Annie’s products. Annie’s is trying to develop brand equity and decide toward which group to focus its marketing efforts.

Alternative A

Intro. Of Alternative Strategies

Target one of Annie’s largest consumer groups: working mothers

ProsIncrease salesBuild brand equityEstablish brand image to appeal to target market

ConsLimiting target demographicsIncreased costs for extensive advertising output

Alternative B

Intro. Of Alternative Strategies

Target the other largest consumer groups: college students

ProsOpportunity for serious growth in an as of now untapped marketA group targeted to young adults may influence younger kids to choose the “cooler” brand

ConsA revamping of brand image may alienate the previously targeted consumer groupAn intense fluctuation of consumer loyalty; no telling how many may fall through the cracks

IMC Objectives

Alternative A•Increase repurchase rate by 60% before December 2006

•Increase reach of ads by 35%

•Generate more family-friendly image among 70% of current clientele

Alternative B•Increase awareness of college student by 60% before the end of Spring 2006 (Spring semester)

•Reestablish positive attitude with 60% of previously targeted groups

Alternative A

Target Market Profile

Geographics

•West Coast and the Northeast

Demographics

•Mothers

•Some college education

•White

•Age 23-42

•Has children ages 2-14

•Employed part-time or full-time

•Combined annual income of at least $50,000

Psychographics

•Reads the daily newspaper

•Reads family magazines and/or health magazines

•Computer/Internet literate

•Health-conscious

•Has strong family values

•Willing to try new things

•Cares for the environment

•Is an impulsive buyer

Alternative B

Target Market Profile

Geographics

•Major college towns

Demographics

•Male or female

•Attends a college or university

•White

•Age 18-25

•Spends at least $50 on groceries per week

Psychographics

•Health-conscious

•Values image

•Cooks meals regularly

•Reads magazines

•Cares for the environment

•Computer/Internet literate

•Looking for new things

Brand Positioning Statement

Alternative A

To mothers that have children, ages 2 to 14, who worry about the diets of their family members but do not have enough time to make all-natural meals from scratch. Annie’s offers quick, easy and healthy meals that family members love at an affordable price. Eating Annie’s foods promotes a healthy lifestyle. The brand character is fun, beneficial and family oriented.

Alternative B

To college students, ages 18 to 25, who are interested in leading healthy and productive lifestyles with foods that are easy to fix and environment-friendly at an affordable price. Annie’s is the brand of macaroni and cheese that allows students to have a healthy diet with all-natural, environment-friendly foods that can be easily afforded on a student’s budget. The brand character is trendy and geared toward today’s young generation.

Selection of Best Strategy

ADrenaline has determined that Alternative A is the best strategy. We have concluded that targeting the working mother demographic would potentially generate the greatest increase in sales. This group has proven to be a successful target in the past, yet Annie’s has to date not extensively pursued it in media outside of simple magazine advertisements. With a refurbished ad campaign and newly shaped corporate image, this demographic stands to increase dramatically.

The Big Idea

Creative Suggestions

•“Healthy in a Hurry”

This will be the new slogan for Annie’s Homegrown. This concept encapsulates the ideas we are trying to get across that Annie’s products are healthy, and also perfect for the working mother who does not have time to cook a meal from scratch.

•An updated logo that appears both professional and appealing to children.

IMC Tools

Creative Suggestions

•Revamp the company Web site to a design more adult friendly. The new site would include recipes for family meals and options to buy Annie’s products online to save time for the busy working mother.

•Relocate Annie’s meals that would appeal to families to the same shelf at the supermarket as regular pasta products, but also keep the other products in the organic food aisle. This will position Annie’s as a healthy alternative to regular pasta meals, and it will perhaps encourage those that buy the competitor’s brand to switch to Annie’s.

•Institute point-of-purchase displays that emphasize the “Healthy in a Hurry” idea.

IMC Tools

Creative Suggestions

•Run a television commercial campaign geared toward busy mothers that explains Annie’s mission statement and commitment to all-natural ingredients. The commercials will ultimately show that feeding your kids Annie’s will encourage healthy eating habits in the future and foster in them a caring attitude toward the environment, an idea shadowed by the concept that Annie’s is quick and easy.

•Run a magazine advertising campaign in popular magazines that mothers read including Parenting, Family Circle, Home & Garden and Redbook. This campaign with run in conjunction with the television ads and also emphasize “Healthy in a Hurry.”