Chiffon Insights

AssignmentTeam 2 Amanda Thompson, Taylor Sullivan, Ben Lorick,

Melanie Lloyd and Katharine Duckworth

Objective

● Chiffon is struggling to identify who their margarine should target and needs to find the right way to support the brand.

● Pinnacle Foods Brand Manager believes that Chiffon has “upside” potential and began testing sweetened and unsweetened versions. ○ He wants a recommendation on how to proceed with supporting Chiffon

margarine.

● Our objective is to solve this problem by identifying Chiffon Margarine’s target audience, and repositioning the brand in a way that attracts this target audience.

Chiffon History

● Chiffon margarine had great success in the

1970s and 1980s as one of the leading

brands of margarine

● During the 1970s and 80s, it was known as

the “spread of choice”

● Chiffon had award-winning

advertisements with its TV commercial

executions of “Mother Nature”

● After the 1980s, it became a

trade-supported brand and stopped

advertising.

A Little History

What’s the Problem?

The Problem● Since the 1980’s, Chiffon has had no marketing or advertising (around 40

years)

● Pinnacle Foods has recently acquired Chiffon since it is a venerable old brand

that is in need of restaging

● The current brand manager developed two different types of flavored

margarine and does not know who to market to.

○ The brand manager couldn’t decide if Chiffon should target the current

category consumer (not willing to pay more money, impulsive buyer,

obese), or branch out to those who are not yet category consumers.

SWOT Analysis

SWOT

● Owned by a large brand (Pinnacle Foods) ● Successful in the past with advertising● No dairy or animal products are used to create margarine

● Many different owners● Has had no marketing or advertising in the past 40 years● Small market share

● Margarine category represents $861.5 million in revenue in the past year● Vegan lifestyle and organic lifestyles are important to many consumers● Flavored margarines and butters are wanted by consumers

● Category deteriorated into general commodity ● Frequent users of margarine are not willing to pay a higher price ● Large private-label percentage of sales

Direct Competition

Direct Competition

● Private-Label Brand Margarines● I Can’t Believe It’s Not Butter● Shedd’s Country Crock● Blue Bonnet● Parkay

Blue Bonnet is the only competitor that is vegan and does not have preservatives.

Target Audience

Case Study Target Audience: Frequent User of Margarine

● Optimal frequent user of margarine demographics (according to

case study)○ Housewife, Aged 25-54, married and had two children

● Small percentage of the market is that demographic

● Consumers are not willing to pay more for margarine

● The frequent margarine user is overweight or obese

● They do not like spicy foods ○ According to researchers, liking spicy foods is an indicator that they are willing to try

new items.

Recommended Target AudienceTarget Audience

● Women 18-34Target Segment

● Busy Belongers

Key Characteristics:

● Desires to be healthy

● Live busy lifestyles

● College enrolled/college grad

● Wants to be connected with family and friends

● Eager to try new things

● Household Income= $100,000+

Meet Janet● Janet is a 29 year old caucasian woman

from Austin, Texas ● Janet starts off her day early in the

morning to get ready for work● After work, Janet comes home to take

her dog, Rodney on his daily 2 mile run in order to burn calories calories and give her dog exercise as well

● At dinner, she cooks for her husband, Carl, as soon as he is home from work

● Janet ensures her dinners are healthy and delicious

● While Janet and Carl enjoy their dinner, they discuss each other's day and get ready for tomorrow’s routine

Primary Business

Primary Business

● The Challenge○ Establishing brand identity in a highly saturated market that is driven by

price

● The Opportunity○ Product Differentiation

■ All-natural alternatives to butter and other cooking spreads.

■ Different flavored margarines

Key Insight

People want a natural, quick, and delicious option to enhance their food.

Primary Research Suggestion

● Observation

○ Ask shoppers why they choose butter over

margarine.

○ Watch consumers buying patterns of butter or

margarine.

Positioning

Positioning Statement

To….Consumers who prefer finding healthy alternatives to commonly used cooking ingredients

Healthier alternative to butter

Can be used to enhance flavor while remaining all natural and guilt-free, allowing consumers to stay in control of their health

According to the Packaged Goods Case study Chiffon Margarine:

● Uses natural ingredients● Allows users to use less sugar than other

sweeteners in their cooking● Fared very well in taste tests

That’s because...

That...

Chiffon margarine is the...

The Big Idea

Chiffon: The ultimate butter alternative for healthier, tastier eating.

CreativeBrief

Creative Brief

Our Suggestion

● Target health-conscious women 18-34 with household incomes of

$100,000+

● Position Chiffon as the more natural and healthy option compared

to butter.

● Chiffon will be the ultimate butter alternative for healthier and

tastier eating.

Questions?