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BELVITA INDULGENCE Jake Godgart, Emmeline Morehouse, Ian Karutz & Craig Angelson “Treat Yourself to Health”

BelVita Indulgence - Market Analysis and Recommendation

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Senior Marketing Strategy Capstone course: Mock consulting opportunity - Researched, assessed and recommended new product offering for Kraft BelVita Breakfast Biscuits by conducting industry, competitive, market segmentation, and product research and analysis to create detailed marketing plan and presentation

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Page 1: BelVita Indulgence - Market Analysis and Recommendation

BELVITA INDULGENCE

Jake Godgart, Emmeline Morehouse, Ian Karutz & Craig Angelson

“Treat Yourself to Health”

Page 2: BelVita Indulgence - Market Analysis and Recommendation

BACKGROUND

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Page 3: BelVita Indulgence - Market Analysis and Recommendation

Strengths • Brand Reputation

• Product Placement

• Distribution

• Financials

Opportunities • Acquisitions

• Healthy Products

• Social Media

• Reinvesting

• New & Emerging

Markets

Weaknesses • Dessert like Snacks

• Limited Focus

• Debt Ratio

Threats • Competition

• Slow Economy

• Substitutes

• Commodity Prices

• Habits

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SWOT Analysis – Nabisco Products

Page 4: BelVita Indulgence - Market Analysis and Recommendation

Nabisco Consumer Profiles

1.The Parent

2.The Person With “No Time”

3.The Healthy Eater

4.The Indulger

5.The Health Conscious Adult

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Page 5: BelVita Indulgence - Market Analysis and Recommendation

Original Concept

Mission

"New BelVita Breakfast Biscuits. Power up, People.

It's a new kind of Breakfast. With 18g of delicious

whole grain per serving and nutritious sustained

energy, new BelVita Breakfast Biscuits keep you

fueled up all morning long."

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Page 6: BelVita Indulgence - Market Analysis and Recommendation
Page 7: BelVita Indulgence - Market Analysis and Recommendation

BelVita Breakfast Biscuit

Fundamentally good product

o Strong results from the U.K.

Biscuit as a new concept

o Importance of Education

Great first response to health demand

Stronger commitment to health

Lacking specific targeted/consistent marketing

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Page 8: BelVita Indulgence - Market Analysis and Recommendation

Market Analysis

• Most Significant Groups

o Women

o Children

o Hispanics

• Who are the consumers of healthy foods?

o Age

o Gender

o Household Income

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Page 9: BelVita Indulgence - Market Analysis and Recommendation

6 Months

Total

Other

Nabisco Keebler

Men 94 78 102

Women 103 110 99

6 Months Total Other Nabisco Keebler

Magazine: Working Mother 116 *204 100

Magazine Types: Babies 115 *98 *155

TV Show Types: Daytime

Dramas 114 *121 *147

Cable Services: SOAPnet 112 145 *167

Magazines: Ladies' Home

Journal 111 160 *80

Web Sites: Shopzilla.com 111 145 *287

Women

Market Analysis

Page 10: BelVita Indulgence - Market Analysis and Recommendation

6 Months Total Other Nabisco Keebler

Web Sites: Univision 122 221 *31

Web Sites: Any Spanish Language Website 118 259 *51

Cable Services: Galavision 114 201 *54

Spanish Spoken at Home (most often or

other) 104 139 *106

Hispanics

6 Months Total Other Nabisco Keebler

Child age: 6-11 years 111 117 *95

Cable Services: PBS Kids Sprout 112 *115 *161

Magazines: National Geographic

Kids 111 *67 *205

Cable Services: Nickelodeon 110 122 *145

Children

Market Analysis

Page 11: BelVita Indulgence - Market Analysis and Recommendation

HHI $150,000+ 128

HHI $75,000-$149,000 111

HHI $60,000- $74,999 103

HHI $50,000- $59,999 92

HHI $40,000-$49,999 108

HHI $30,000-$39,999 89

HHI $20,000- $29,999 89

HHI <$20,000 78

Women 18-34 102

Women 18-49 110

Women 25-54 112

Age 18-24 56

Age 25-34 95

Age 35-44 110

Age 45-54 92

Age 55-64 113

Age 65+ 111

Healthy Food Consumers:

Looking at Dannon’s Activa

Page 12: BelVita Indulgence - Market Analysis and Recommendation

Proposed Target Market

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Women

Ages 45+

Household Income - $150K-160K

Page 13: BelVita Indulgence - Market Analysis and Recommendation

OUR SUGGESTION

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Page 14: BelVita Indulgence - Market Analysis and Recommendation

Our New Product – BelVita Indulgence

Same biscuits but with a drizzle of chocolate

• Infused with Vitamin D, Iron, and Calcium

• Fight osteoporosis, and anemia

Snack or breakfast food

• Heavy concentration on medical and health

characteristics

o Osteoporosis

• Very direct and targeted marketing

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Page 15: BelVita Indulgence - Market Analysis and Recommendation

PRODUCT

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Page 16: BelVita Indulgence - Market Analysis and Recommendation

• Introduce in Test Market January 2013

• Expand Q2 2013

• Launch National Q3 2013

• Target unserved demographics

• Shift focus of BelVita to health oriented

products for specific health related needs

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Objectives

Page 17: BelVita Indulgence - Market Analysis and Recommendation

County

• Test in Monroe County, NY (Determine market response)

3-6 Month

• Successful pilot product

• National Launch with PR blitz

• Endorsements, sponsorships and partnerships

National (with expectations of Global)

• Establish "good-for-you" rather than "better-for-you“

• Increase perception of Nabisco as health oriented

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Objectives

Page 18: BelVita Indulgence - Market Analysis and Recommendation

Primary

• Women 45+

• Prevent Osteoporosis

Secondary

• Working mothers 35-44

• Looking for a quick snack

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Target Indulgence Customers

Page 19: BelVita Indulgence - Market Analysis and Recommendation

Monroe County- Quick Facts

Population- 744,344

• Growth Rate- 1.2% (Over a 10 year period)

• More women (51.8%) than men (48.2%)

Ethnicity

• White -76.1%

• African American- 15.2%

• Hispanic- 7.3%

• Asian- 3.3%

• Reporting two or more ethnicities 2.6%

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Page 20: BelVita Indulgence - Market Analysis and Recommendation

• Cozy and Comfortable

• Prosperous Empty Nesters

• Exurbanites

• City Dimensions

• Rustbelt Traditions

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Monroe County – ESRI Profile

Page 21: BelVita Indulgence - Market Analysis and Recommendation

• Multi-Culti Mosaic

• Country Casual

• Pools and Patios

• Fast-Track Families

• City Roots

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Monroe County – Prizm Profile

Page 22: BelVita Indulgence - Market Analysis and Recommendation

Why Monroe County?

Population

• Broome and Onondaga Counties

Characteristics

Financially Comfortable

Media

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Page 23: BelVita Indulgence - Market Analysis and Recommendation

Product - Strategy

Appeal to older health conscious women

Fight Osteoporosis and anemia

Deliver health targeted snack that entices as a treat

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Page 24: BelVita Indulgence - Market Analysis and Recommendation

Product - Tactics

Biscuit fortified with higher concentrations of:

• Fiber

• Energy sustaining carbohydrates

• Iron

• Calcium

• Vitamin D

Targeted Packaging

• Show health benefits right at POS

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Page 25: BelVita Indulgence - Market Analysis and Recommendation

Placement - Strategy

Wide but conventional placement

Educate Customer at POS

Placement at both register and in isle

Placement with complementary goods

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Page 26: BelVita Indulgence - Market Analysis and Recommendation

Placement - Tactics

Grocery Stores and Convenience stores

• Displays for education

• Promotional coupons and pricing

Women's boutique stores

• Attractive and educational displays

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Page 27: BelVita Indulgence - Market Analysis and Recommendation

Promotion - Strategy

Promote BelVita line products

Promote awareness of health issues

Gain Influencer Awareness and Advocacy

Strategic Partnerships

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Page 28: BelVita Indulgence - Market Analysis and Recommendation

Promotion - Tactics

Education

Relationship with AARP

• Direct communication with target market

• Increased product credibility

Relationship with Strong Memorial Hospital

• Potential advocacy from doctors or nurses

• Not a medical product but health benefits

Use of local media outlets

• Social media not a main concern

• Higher demographic traffic locally Treat Yourself to Health!

Page 29: BelVita Indulgence - Market Analysis and Recommendation

Promotion – Mock Up Ad & Packaging

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Page 30: BelVita Indulgence - Market Analysis and Recommendation

Pricing - Strategy

Build Brand Awareness

Discounts and Packaging

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Page 31: BelVita Indulgence - Market Analysis and Recommendation

Pricing - Tactics

Buy-One-Get-One promotion

• Exposure to both products

Distribution of coupons through AARP

Distribution of coupons in local newspapers

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Page 32: BelVita Indulgence - Market Analysis and Recommendation

Start R&D

Start

Packaging

and

Marketing

Collateral

Start Talks with

Orthopedic

Professionals

Monroe

Product

Launch

Engage NOF

Partnership

with AARP

Ship Packaging

with NOF

Partnership

National

Product

Launch

Regional

Product

Launch

APRIL JUNE JAN APRIL JUNE

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Event Timeline

Page 33: BelVita Indulgence - Market Analysis and Recommendation

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Page 34: BelVita Indulgence - Market Analysis and Recommendation

QUESTIONS?

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