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Woods 1 Wonder Bread Introduction According to Hostess Brand Website, Wonder Bread is one of the bread names for bakery products owned by Hostess Brand. Hostess Brands is among the nation’s largest and best-known providers of fresh-baked bread and sweet goods in the US with annual sales of $2.5 billion (est.). Our 20,000 employees operate 36 Bakeries nationwide; and approximately 6,000 delivery routes, 600 Distribution Centers, and 600+ Bakery Retail Outlets.” Hostess says that their products contribute to a balanced American lifestyle. They claim that they “embrace manufacturing practices that contribute to a safe environment and are firmly committed to creating a more sustainable future by shrinking [their] carbon footprint, eliminating waste, and preserving resources. [They] want to develop products that are fresh, great tasting and high quality is our goal.The profitability of the Wonder depends on efficient operations, effective marketing, and a strong sales force. Today the market requires companies to be green oriented and be socially responsible. According to Hostess Brands, starting from 1996, it has been improving its formal commitment to sustainability It is characterized by five guiding principles: reduce, remove, reuse, recycle, and report (Hostess Brand Website). To help their consumers to make informed and healthy choices, the nutritional labeling on the products are clearly stated (Wonder Bread website). The Marketing Mix The marketing mix refers to the four P’s, product, price, place, and promotion. These four elements are the crucial activities that a marketing firm can control to influence their customers and respond to potential opportunities. The goal of firm’s is to create a product that offers some type of benefit or value to the consumer. The brand name Wonder bread offers three general types of products, Wonder White, Wonder Wheat, and Wonder Buns. Within these three categories, there are various types of white, wheat and buns available for the consumer. The value provided to the customer is quality, nutritional bread that consumers can trust in. In August 2009, Wonder reformulated its Classic bread varieties to include more nutritional value to change their image. Years ago, the packaging was simple white with the colorful Wonder logo. Now, the packaging is always clear, so that consumers can see the bread inside the packaging, and it has a colorful Wonder logo; each different type of bread has a specific title color, for example Classic White appears in red. The next element is price, or, everything the buyer gives up in exchange for the product. The price must be decided by marketers carefully to meet potential buyer’s beliefs and is all about capturing value for the customer. In regards to pricing strategy, Wonder bread is affordable bread available for all consumers and in comparison to other breads such as Pepperidge Farms and Nature’s Own, is fairly less expensive. Because the manufacturer does not suggest a retail price, retailers are able to price the product which allows for price flexibility. Place represents all the activities necessary to get the Wonder bread to the right customer when that consumer wants it. Place is about delivering the value to customers. Hostess, owner of

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Page 1: Wonder Bread - · PDF fileWoods 2 Wonder bread, produces products that are distributed through a direct store delivery system of 6,000 routes serving 50,000 customers throughout the

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Wonder Bread

Introduction

According to Hostess Brand Website, “Wonder Bread is one of the bread names for

bakery products owned by Hostess Brand. Hostess Brands is among the nation’s largest and

best-known providers of fresh-baked bread and sweet goods in the US with annual sales of $2.5

billion (est.). Our 20,000 employees operate 36 Bakeries nationwide; and approximately 6,000

delivery routes, 600 Distribution Centers, and 600+ Bakery Retail Outlets.”

Hostess says that their products contribute to a balanced American lifestyle. They claim

that they “embrace manufacturing practices that contribute to a safe environment and are firmly

committed to creating a more sustainable future by shrinking [their] carbon footprint, eliminating

waste, and preserving resources. [They] want to develop products that are fresh, great tasting

and high quality is our goal.”

The profitability of the Wonder depends on efficient operations, effective marketing, and a

strong sales force. Today the market requires companies to be green oriented and be socially

responsible. According to Hostess Brands, starting from 1996, it has been improving its formal

commitment to sustainability It is characterized by five guiding principles: reduce, remove, reuse,

recycle, and report (Hostess Brand Website). To help their consumers to make informed and

healthy choices, the nutritional labeling on the products are clearly stated (Wonder Bread

website).

The Marketing Mix

The marketing mix refers to the four P’s, product, price, place, and promotion. These four

elements are the crucial activities that a marketing firm can control to influence their customers

and respond to potential opportunities.

The goal of firm’s is to create a product that offers some type of benefit or value to the

consumer. The brand name Wonder bread offers three general types of products, Wonder White,

Wonder Wheat, and Wonder Buns. Within these three categories, there are various types of

white, wheat and buns available for the consumer. The value provided to the customer is quality,

nutritional bread that consumers can trust in. In August 2009, Wonder reformulated its Classic

bread varieties to include more nutritional value to change their image. Years ago, the packaging

was simple white with the colorful Wonder logo. Now, the packaging is always clear, so that

consumers can see the bread inside the packaging, and it has a colorful Wonder logo; each

different type of bread has a specific title color, for example Classic White appears in red.

The next element is price, or, everything the buyer gives up in exchange for the product.

The price must be decided by marketers carefully to meet potential buyer’s beliefs and is all about

capturing value for the customer. In regards to pricing strategy, Wonder bread is affordable bread

available for all consumers and in comparison to other breads such as Pepperidge Farms and

Nature’s Own, is fairly less expensive. Because the manufacturer does not suggest a retail price,

retailers are able to price the product which allows for price flexibility.

Place represents all the activities necessary to get the Wonder bread to the right customer

when that consumer wants it. Place is about delivering the value to customers. Hostess, owner of

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Wonder bread, produces products that are distributed through a direct store delivery system of

6,000 routes serving 50,000 customers throughout the United States (Hostess Brand Website).

The majority of the bread is sold through mass merchandisers and supermarkets such as Publix,

Winn Dixie, Walmart, Target, HEB, Kroger’s and many more.

Part of the success of Wonder brand bread is promotion; the purpose of promotion is to

communicate the value of the product to the consumer. Wonder’s strategy for promoting is “at

level”. This means that Wonder likes to make their bread available to every type of consumer.

Based on their advertisements, it seems that it is targeted more towards families and children

because it claims to “build strong bodies in 12 ways” (Hostess Brand Website). Wonder bread

also recently launched its first national campaign titled “Always Wonder” to remind moms that

that the new Smartwhite bread offers great nutritional value for their children (Wolff). It should

be noted that even the best products will go unsold if marketers cannot communicate or promote

their value to customer (Wolff).

Consumer Behavior Process

The consumer decision process is an important process which determines what product the

consumer will purchase. This process ultimately answers the question as to why people buy

products or services. There are five steps in this process.

The decision process begins when the consumer recognizes that we or she has an

unsatisfied need, in this case, a need for bread, and decides they would like to satisfy this need-

this is called need recognition. Bread serves as both a functional and psychological need because

the act of eating bread is to solve the problem of hunger, therefore functional, but that hunger

could also be satisfied by eating something else, so it is also psychological.

A consumer will then search for info about the options that he or she has to satisfy that

need. Because buying bread has a relatively low risk and is inexpensive, most consumers will not

spend that much time researching what type of bread to buy. Bread generally has no financial,

psychological, or social risks so little or no research may be conducted besides simply looking at

the different brands offered on the shelves and comparing promotions on different brands of

bread. This step is called the search for information.

After recognizing problem and exploring their options, a consumer will review the choices

and evaluate the attractiveness of buying one type of bread over another, in other words, the

evaluation of alternates. Consumers will look at the evaluative criteria, such as price, ingredients,

reputation, taste, and nutrition facts, to help make their decision. To do this, consumers can look

at Wonder bread packaging in the store, check the nutrition facts and compare ingredients to other

alternatives such as Nature’s Own, Publix brand, and Sara Lee.

Purchase and consumption is the next step consumers will take in this process. They will

proceed to purchase the loaf of Wonder bread and later consume the product when they get home.

Postpurchase is the behavior of the consumer after purchasing and consuming their good or

service, in this case, Wonder bread. Marketers will hope that the consumers are satisfied with the

bread because it has met their expectations. They hope that consumers surpass postpurchase

cognitive dissonance to establish customer loyalty and solidify a relationship with their customer.

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Factors Influencing the Consumer Decision Process

There are many factors that can influence purchase decisions, including psychological,

situational, and social factors, and are also influenced by the marketing mix. Psychological

factors that can affect a consumer’s purchase of Wonder bread would be physiological motives

such as hunger, attitudes towards the advertisement of the brand, perception based on Wonder

bread’s packaging, color, and taste, and lifestyle. For example, the consumers who are more

health conscious will purchase a brand of bread that has a reputation for being healthy. In most

recent years, Wonder bread has recognized a shift away from plain white bread to bread that has

more nutritious value, in response, they have begun to sell white bread called Smartwhite which

has the same nutritional value as wheat bread. Additionally, they have changed Wonder Classic

White to contain the same amount of calcium as would provide an 8oz glass of milk and a

significant source of vitamin D (Hostess Brand Website). Social factors such as family’s

purchase decisions, reference groups, and culture will also affect a consumer’s purchase of

Wonder bread. For example, an individual who lives in Miami, Florida and was raised in a

Hispanic family might be more prone to buying Bimbo bread instead of Wonder bread compared

with an individual who was raised in an all-American family living in the suburbs of Dallas,

Texas. Purchase situations such as shopping at Whole Foods instead of Publix, and shopping

situations such as store atmosphere, salespeople, crowding, promotions, packaging, and the

temporal state of the consumer are all purchase situations which will consequently affect purchase

decisions. If a specific grocer is particularly crowded one day, the consumer may decide to leave

and shop at another grocer which does not carry Wonder bread. If there is a promotion going on

for Nature’s Own wheat bread, the customer may decide to purchase Nature’s Own Wheat Bread

that day instead of Wonder bread Wheat Bread.

Needs / Wants

Bread is generally considered to satisfy a physiological need: hungry. Sliced bread helps

people, especially working mothers, to save time for preparing their children’s meals. And

Wonder Bread is the first bakery company that provided sliced bread.

However, the company has been focusing to make people “want” Wonder Bread. In other

words, by providing a vast gamma of different types of bread and by emphasizing their superior

qualities Wonder Bread has been trying to elevate the need for white bread to a want. For

instance, one does not need, but he or she wants the Texas toast because of its extreme softness

that competitors do not offer.

A new national trend is the preference for healthier food, so even the basic aliments like

bread are interesting by this change in consumers’ preference, as our survey revealed too. Thus,

one of the new marketers ‘objective is to make clear to the public that their brand name fulfills

these requirements. In particular, given that a large part of the target market for Wonder Bread is

constituted by children the matter is even more significant. To respond to the increasing demand

for healthier food Wonder Bread fulfills the following nutrition principles: their bread contains

zero grams of trans fat, as defined by FDA guidelines. They are actively working towards

lowering sodium levels in our products. All new breads will be introduced to the market with

reduced sodium level. For example, our Nature's Pride line of bread is made with lower sodium

and 100% all natural ingredients. We have also launched Wonder Smartwhite with one-third less

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sodium than standard white bread.

The 100% whole-grain alternative is meant to "deliver all the goodness and health benefits

of whole grain without sacrificing the benefits of white bread," says Jacques Roizen, chief

marketing officer for breadmaker Interstate Brands. "It still has the taste and texture of white

bread but the benefits of whole grain (Weise). Moreover, given the new increasing demand for

European bread ( see Table 3), in particular Italian one, Wonder Bread responded by introducing

its own Italian bread.

To meet mothers’ concern about their children’s nutrition, since October 2010, Wonder

Classic and Wonder Classic Sandwich provide the same amount of calcium in two slices as an

eight ounce glass of milk. Moreover, they are good sources of vitamin D, which helps the body

absorb calcium better.

Competitive Analysis

Every company in the bread industry has its own strategic marketing plan. These

companies add and project value to their products through the benefits, price, promotional offers,

and packaging they offer. Companies create a product and try and appeal to consumer needs

through their products. In the bread industry, companies produce different varieties of breads in

order to provide different benefits and satisfy the diverse needs of consumers. For example,

breads may vary in taste, texture, and nutritional benefits.

Considering that the demand is driven by population growth, consumer tastes, and health

considerations, to maintain its market position and a sustainable completive advantage, the

company should be able to adapt as more quickly as possible to new market conditions and new

consumers’ preferences. “Several factors have been suggested to explain recent changes in

bakery product consumption. The three most important are increasing convenience/quick

preparation time in the marketing of foods, the prevalence of fad diets that stress the avoidance

of carbohydrate rich foods, and the detection of acrylamide, a potentially cancer causing

substance in baked and fried foods.” (Industry & Trade Summary-Bakery Products).

Wonder Bread has a variety of types of breads with varying nutritional benefits. Wonder

bread has three main categories of breads; white breads, wheat breads, and wonder buns.

However, white bread is the only category that is predominant in the Miami market. Under the

white bread category there are nine different products. Once again only three products are

predominant in the Miami market; smart white, classic white and whole grain white. Smart

white is described as having essential vitamins and minerals. Two slices of smart white bread

have the same calcium as an 8 ounce glass of milk and has 33% less sodium than regular white

bread. Classic white too has the same calcium as an 8 ounce glass of milk and has essential

vitamins and minerals. Whole grain white has eight essential vitamins and nutrition as well as

the calcium but is also a good source of fiber.

Marketers project these benefits through their packaging. The fierce competition in the

bread industry is most apparent in the way they package their bread. Companies display and

promote through their packaging. They package and display their products horizontally or

vertically. A vertical display requires bread with a specific texture that refrains the loaf from lop

siding and falling over. The benefit of a vertical display is that they allow a larger surface area to

be displayed to the consumer. Marketers take advantage of this surface area by including

nutritional facts such as grain types, protein per serving, calories, etc. A horizontal display

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allows a company to accommodate more slices of bread in the packaging without the concern of

the loaf falling over.

Wonder bread packages and displays their bread horizontally. Their packaging is very

similar to that of Nature’s Own. Aside from the packaging similarity, their location in the aisles

tends to be side by side. This may confuse customers by them not being able to distinguish

between Wonder bread and Nature’s Own. However, for those customers that are able to

distinguish it shows them that there is a clear substitution for either brand. This same style of

competition is seen amongst other companies as well. For example this competition is seen

amongst Dandee and Sunbeam. They both carry the products, Old Fashioned and GIANT.

They’re packaging is almost identical and their location is side by side on the aisle.

Wonder bread’s main competitor is Nature’s Own, but they also have other competitors

that aren’t necessarily in the white bread market; for example, Nature’s Pride, Dandee, Sunbeam,

Arnold, and Pepper Ridge Farm. These competitors mainly compete with one another. Their

competition is apparent through their packaging. Nature’s Own competes with Nature’s Pride.

Although Nature’s Own packaging is similar to that of Wonder Bread when it comes to white

breads; for multi-grain breads, the packaging of Nature’s Own and Nature’s Pride is almost

identical. They both incorporate a vertical packaging.

The packaging along with the benefits being promoted must be captured in a single

enticing price. This price is crucial in the perception of the brand. If the price is too high you

may dissuade consumers from purchasing your bread if they don’t agree that the benefits are

truly worth the price. If the price is too low consumers may question the quality of the bread.

Companies also entice consumers through promotion and promotional offers. They attempt to

inform, persuade, remind, and influence the opinions of consumers.

On average Wonder bread’s price varied from $2.95 to $2.97. Its competitor, Nature’s

Own had a price of $3.29 for a similar white bread. Nature’s Own however did have a

promotional offer that Wonder bread did not. Nature’s Own had two loafs for $5.00. Although

Wonder bread does have a better price for a single loaf, it must implement some promotional

offers in order to stay competitive and attract some of Nature’s Owns customers.

With regards to competition nationally, Hostess ranks fourth among the top ten

competitors that sell bread and related products. Their sales for a 52 week year in 2010 were

$577,166,400

Segmentation Strategy

Establishing the segmentation strategy is the first step in the segmentation process. It

involves clearly articulating the vision of the company’s marketing strategy. This strategy must

be consistent with the company’s mission and objectives as well as its strengths, weaknesses,

opportunities, and threats. Wonder Bread’s segmentation strategy has had to change and evolve

throughout the years. They began their product by segmenting to families since they were the

creators of sliced bread. They would segment their product based on consumer preferences such

as nutrition, taste, texture, and size. Today they feel as if they have lost some young consumers,

so they see this as an opportunity. They have launched an apple application that allows you to

design your own sandwich with your own Wonder bread. In fact, considering the huge role

played in today market by iPhone and related applications Wonder® Bread decided to go mobile

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by launching of the first iPhone application for creating sandwiches and calculating calories. On

February 2010, "Wonder-izer"™ application entered the market.

The Sandwich "Wonder-izer"™ application is a free app for the iPhone and iTouch “that

enables consumers to create unique sandwich combinations from a list of more than 120

ingredients – from cheddar cheese to cucumbers and sprouts to salami – while calculating the

sandwich’s nutrition values in real time with each added ingredient.” (Wonder Bread website)

To reach the majority of customers and even new consumers the Sandwich Wonder-izer is also

available online at www.wonderbread.com.

Sandwiches created with the Sandwich Wonder-izer app can be named and shared with friends

via websites such as Facebook and Twitter. In addition to creating new sandwiches, the

Sandwich Wonder-izer app also offers a menu of inventive and enjoyable pre-made sandwich

recipes ranging from the hearty "Wonder-full Reuben" to the diet friendly "Waistline Watcher".

"As our culture becomes increasingly mobile, The Sandwich Wonder-izer app is a fun and

engaging tool that families can use to learn about making healthy food choices while creating

delicious, nutritious sandwiches," said Stephany Verstraete, Vice President of Marketing for

Wonder Bread. (Wonder Bread website)

Another important step in the segmentation process is selecting your target market. The

company’s ability to pursue a certain target market is crucial in the selection process. A

company wants to choose a target market they feel that they will be able to reach and cater to. In

order to correctly select the right target market, a SWOT (strengths, weaknesses, opportunities,

and threats) analysis is done to the target market as well as the company. There are four basic

targeting strategies used; undifferentiated targeting strategy, differentiated targeting strategy,

concentrated targeting strategy, and micromarketing. Wonder Bread utilizes a differentiated

targeting strategy. This strategy allows them to develop different product for different market

segmentations they want to reach.

Target Market

Throughout Wonder bread’s history they have seen opportunities to target new market

segments. They began their segmenting by targeting to families that are conscientious of their

children’s health. The first campaign they launched was the “build strong bodies campaign”. As

people began to become more conscientious of calorie intake, Wonder bread decided to target to

this segment as well. They launched their Wonder light bread that has fewer calories than

normal bread. As time progressed Wonder bread was no longer as popular amongst the younger

generation, so they recently began to target this segment as well. Their marketing for this

generation was extremely innovative. They starred Wonder bread in the hit comedy, Talladega

Nights as well as launching the Apple application.

Positioning Strategy

The final step in the segmentation process is the positioning strategy. This step involves

defining the marketing mix variables so that the company’s target customers can clearly

distinguish the functions and benefits of your product versus that of competing products. For 90

years, Wonder Bread has identified as “the soft, delicious, and nutritious bread families love”.

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Packaging information and design

Packaging is an important tool to capture consumers’ attention. That is why packaging

should be “Simple, effective, practical, and with full brand identity” (Thompson), it should

facilitate the buying decision process. Furthermore, the effects of packaging design are not to be

underestimated even for a bread loaf.

Throughout the company’s history, one of the most important innovations in the

packaging design is the adoption of transparent material (see figures 1 and 2). In fact, it is more

attractive or is it more trustful a loaf of bread in a closed opaque bag or bread in a transparent

packaging? With the new design, the consumer is able to see the bread and check the softness

and the freshness, i.e. she is more confident in buying it.

Furthermore, to reposition its product line and update its current market, back in 2008,

the company renewed the design of the packaging. The design company in charge is Willoughby

Design.The new design gives consistency to the line that presents different types of bread (see

Figure 3).

Wonder Bread provides clear nutritional labeling on all our products to help consumers

make informed and healthy choices. Moreover, to respond to people’s concern about freshness,

Wonder Bread reports on every package a “Sell by Date" emphasizing also that Wonder Bread

sells five days per week (wonder bread website). The classic white bread packaging has been

contemporized to respond to the new taste of a new generation of kids and their mothers by

emphasizing on the package the presence of vitamin, mineral and folic acid content. Moreover,

Additional new packaging has been created for Wonder Classic Sandwich Bread and new

Wonder Whole Grain White Bread and Wonder White Bread Fans 100% Whole Grain Bread; in

particular, the packaging reflects “today’s more health-conscious, educated consumer who wants

the uncompromising taste and softness of the original Wonder Bread along with the health

benefits of whole grains.” (Minnini)

As our survey revealed, consumers do not want spend too much time looking for the

different characteristics of the diverse bread. They should be clearly visible and consultable.

Thus, highlighting with colors or shapes the main characteristic or what diversifies a loaf of

bread form the other is an important feature that our bags show.

For example, when the company launched “Wonder Smartwhite” it was clear from the

front of the packaging that the new white bread had the same amount of fiber as 100%

wholewheat bread, that it provides 5g of fiber per serving, in addition to the calcium equal to an

8oz glass of milk in two slices, as well as a good source of nine vitamins and minerals. It also has

33% less sodium than regular white bread and a total of 50 calories per slice. (Prepared Foods).

The related motto “Nutrition you want, taste you love” is functional to remember consumers that

the deliciousness and the quality of the bread is not changed, but now the same bread the love is

even more nutritious and healthier.

After conducting the survey in Publix grocer, the discovery was made that consumers

would prefer that Wonder changes the packaging so that they can freeze the product. Other

competing brands offer this option and it would be to Wonder’s advantage to make this change.

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Market Strategy and Sales

Wonder Bread is clearly an established brand of bread and has been for many years.

Since it’s creation in 1921 it has been selling fairly well up to present day. However, among

consumers that purchase bread, according to our questionnaire and comments said by them while

taking the survey, most buyers are now focusing on bread with a health benefit included, as

previously emphasized. For instance, the brand Nature’s Own has varieties of their brand that

include 8-grain bread and wheat bread whereas Wonder Bread has been mostly white bread for

90 years. That being said, Wonder Bread needs to improve or change their marketing strategy

drastically if they want to survive in the competitive environment.

Wonder Bread needs to first identify their problem, which is their brand not selling as

well as competitor brands. An article on NY Daily News stated that wheat bread sales have

surpassed white bread sales (NY Daily News). To improve Wonder Bread’s marketing strategy, I

suggest that they first address their problem, which is the bread not selling as well as competitor

brands. The only logical conclusion would be to adapt to the increase in consumers that are

concerned with their health and adopt production of bread with a health benefit such as including

no high fructose corn syrup or including grains in their bread.

On the other hand, at this point in the companies’ lifetime, Wonder Bread appears to be

surviving off of their loyal, older consumers. One interviewee appeared to be in his mid 50’s

and said he had “been buying wonder bread since he was a kid.” If this is the case, and Wonder

Bread does not have a growing loyal consumer base, the company’s problem has now shifted to

their target market, which is currently everyone – baby boomers in particular.

Wonder Bread now needs to find a new or alter their previous target market to fix their

problem of marketing to an expiring generation. Wonder Bread needs change their target market

to young, health-conscious individuals and develop a relationship with them. This can be

achieved through a change in product, price, place, promotion, or a combination of all four of

these marketing mix elements.

In this situation, Wonder Bread needs to slightly change their product. The place will

remain the same and the price and promotion will change with respect to the product. For

instance, with the rise in health-conscious consumers, white bread is no longer the preferred

bread. The ingredients in white bread are detrimental in a consumer’s decision when buying

bread – there is not a sufficient amount of fiber. Based on questionnaires, 8-grain and whole-

wheat bread are healthier. Next, Wonder Bread price will have to increase their prices due to an

increase in input factors of the bread. This new price will most likely rival Nature’s Own and

Nature’s Pride. Finally, their promotion and packaging will change from white bread and a

white package to the desired type of bread and possibly a different package. This seemingly

small, yet huge change in Wonder Bread’s product will greatly increase their competitive edge in

the bread market. The new front that Wonder Bread will undertake will promote a healthy

lifestyle and encourage consumers to buy the Wonder Bread brand once again.

Unfortunately, it is disappointing to see the Wonder Bread Company closing bakeries and

production plants. A simple Google search revealed the declining business that Wonder Bread

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has been going through. For example, it just closed a bakery in Queens (Hirshon) as well as

eight other factories since its bankruptcy in 2004.

Figure 1

Old packaging

Figure 2

New Packaging

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Figure 3

Wonder Bread offers a great variety of breads

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Figure 4

Whole Grain White Bread

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Table 1

Bread Statics 2010

Top 10 Fresh Bread Vendors

(for 52 weeks ending August 8, 2010)

Source: Milling & Baking News, Febraury 23, 2010, p.31

Statistics obtained from Information Resources

from scanner data from supermarkets only (does not include Wal-Mart)

Vendor Dollar Sales

George Weston, Inc. $622,482,100

Flowers Foods Bakeries Group $613,509,700

Sara Lee Bakery $585,316,700

Hostess Brands, Inc. $577,166,400

Bimbo Bakeries USA $461,243,200

Pepperidge Farm $430,882,500

Stroehmann Bakeries, Inc. $141,036,000

La Brea $101,585,600

United States Bakeries $90,732,970

Private Label $1,783,348,000

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Table 2

Top 10 Fresh Bread Vendors

(for 52 weeks ending January 24, 2010)

Total fresh bread sales - $6,530,498,000

Vendor Dollar Sales Unit Sales

George Weston, Inc. $606,543,300 220,481,300

Flowers Foods Bakeries $603,667,900 256,180,600

Sara Lee Bakery $597,500,900 234,272,900

Hostess Brands, Inc. $571,514,200 237,662,000

Bimbo Bakeries $491,081,900 158,600,30

Pepperidge Farm $436,695,900 131,134,100

Stroehman Bakeries,

Inc. $145,494,000 65,668,550

La Brea $103,148,200 32,723,540

United States Bakeries $87,658,720 37,137,930

Private Label $1,809,627,000 1,216,086,000

Source: Milling & Baking News, Febraury 23, 2010, p.31

Statistics obtained from Information Resources

from scanner data from supermarkets only (does not include Wal-Mart)

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Figure 5

U.S. imports of bakery products from the EU, by selected product types, 1998-2002

Cookie and cracker products

Bread, pastry, and cake products ($milions)

350

300

250

200

150

100

50

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1998 1999 2000 2001

2002 Source: Compiled from official statistics of the U.S. Department of Commerce

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Appendix A

Questionnaire

Help us!

Please take 2 minutes to complete this brief survey.

Your response will be confidential, and they will not be used for any purpose other than the

research.

1. How long have you been buying Wonder Bread?

Less than a year

From 1 to 3 years

I have never bought it

2. When you buy bread do you consider other brands?

Many others

1 or 2 other brands

Only Wonder Bread

3. Please, list all the brands of breads that you have ever purchased.

-

-

-

4. How much time are you willing to spend buying bread?

…………………………………………………………………………………………….

* Some questions are taken from

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Appendix A

5. When do you buy bread which aspects do you consider?

………………………………………………………………………………………………..

6. By which degree do sales and special offers affect your buying decision?

Low - 0 1 2 3 4 5 - high

7. Please, score Wonder Bread in the following aspects.

Very bad bad mediocre good very good I don’t know

Quality

Price

Design

Size

Accessibility

8. What is your general level of satisfaction with Wonder Bread?

Very satisfied Satisfied Unsatisfied Very Unsatisfied

9. Would you recommend Wonder Bread to a fried?

Certainly

With reservations

Never

10. Are there any suggestions that you would like to give us?

…………………………………………………………………………………………….

…………………………………………………………………………………………….

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Works Cited Page

Bread Statistics 2010. https://www.aibonline.org/resources/statistics/2010bread.htm. 3

October 2011.

Mininni, Ted .Revitalizing, Rejuvenating and Reformulating a Struggling Brand.

http://www.brandchannel.com/papers_review.asp?sp_id=1240. September 29, 2011.

“Classic Wonder Bread bag gets a new take”. Packaging Digest; Jun2009, Vol. 46 Issue 6, p9-9,

1/5p. Business Source Premier. 29 September 2011.

Hostess Brands official website. http://www.hostessbrands.com/Home.aspx. 29

September 2011.

Weise, Elizabeth. USA Today. 6/29/2005 11:15 PM -- 29 September 2011

http://www.usatoday.com/news/nation/2005-06-29-wonderbread_x.htm?csp=34.

Prepared Foods; May2010, Vol. 179 Issue 5, p41-41, 1/4p.Business Source Premier. 29

September 2011.

Thompson, Jared . The Importance of Packaging Design for a Successful Marketing

Campaign. August 10th, 2010. -- http://www.designjuices.co.uk/2010/08/packagingdesign-

successful-marketing-campaign--- 29 September 2011

US International Trade Commission. Washington. USITC Publication. September 2003

.http://www.usitc.gov/publications/332/pub3635.pdf

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Popsop Team .”New packaging and logo for Wonder Bread”. 7 April 2009.

Popsop.com. 29 Sempetber 2009 .( http://popsop.com/8237)

“Before and After: Wonder Bread”. The dieline.

http://www.thedieline.com/blog/2009/4/22/before-after-wonder-bread.html). 3 October 2011.

Wolff, Michael. "Adweek | The Voice of Media". Brandweek.com.

http://www.brandweek.com/bw/content_display/news-and

features/direct/e3ie9fc421daf51cf821dbc883ee4e9975c. 10 October 2011.