quaker chewey marketing plan
DESCRIPTION
A Marketing PlanTRANSCRIPT
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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
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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
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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
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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
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Situation AnalysisSituation AnalysisC titiC titiCompetitionCompetition
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Situation AnalysisSituation AnalysisBrand’s Current SituationBrand’s Current Situation
Current Position
Features of the Chewy Granola BBar
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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
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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
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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%
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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
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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
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Strategies and TacticsStrategies and TacticsStrategies and TacticsStrategies and Tactics
ProductProductPriceP ti ( ti iti d b d t)Promotion (activities and budget)Place
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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
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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
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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
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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
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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
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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
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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?
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PromotionPromotionM di SM di SMedia ScopeMedia Scope
Outdoor MediaOutdoor MediaInternetM iMagazineTelevisionNontraditional Media
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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
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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
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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
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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:
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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
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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
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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
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% 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
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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
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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
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Questions?Questions?Questions?Questions?
Thank You!Thank You!