Fiber One: Eat Smart, Feel Great

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Tasked with rebranding a current product that was not being marketed as effectively as possible

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Current Campaigny Cardboard No. Delicious Yes. y Ads focused primarily on older women y Doesn t taste like fiber

SWOT AnalysisStrengths Weaknesses Opportunities Threats TrendsMultiple product branches Website Cardboard theme Narrow target market Increasing awareness of dietary needs More people trying to live healthy lifestyles Other popular high fiber products Social stigma around high fiber products Increased health awareness Interactivity in marketing

Objectivesy Expand target market to Fit Consumers y Engage consumer through interactive components y Rebrand Fiber One image to emphasize health y Increase brand awareness

Target MarketFiber One Mostly Women 40-50 More Affluent College Educated Interested in Health Fit Consumer Even Gender Split Under 50: 23 % aged 18-29 41% aged 30-49

Co-Brand with Smartwatery Coupon Promotion- $1.00 0ff any Fiber One product y Placed on Smartwater bottles y Improve awareness of Fiber One brand within the fit consumer market

Co-Brand with SmartwaterPlacement Bottles of Smartwater Budget $120,000 Metrics Scanner Data

Print Ad

Print AdPlacement Women s Health Fitness Parent Magazine Budget Primary: $2,949,870 (18 placements per year) Plus Secondary: $6,169,560 (36 placements per year) Metrics Website Analytics Unaided and Aided Recall Tests Magazine Coverage

Website Splash Pagey 6 Question Quizy Demographics y Fitness Level y Most Stressful Meal

y Outcomesy Fiber Facts y Recipes y Recommended Products

Website Splash PagePlacement Fiberone.com/ fitfiber Budget $10,000 etrics Website Hits

Event Sponsorship: Start! Heart WalkIt's more than a program. It's a movement.y American Heart Association s premiere event for raising funds to save lives from heart disease and stroke y Promote physical activity and heart-healthy living y Walk more. Eat better. Live a longer, healthier life.

Event Sponsorship: Start! Heart Walky Nearly 350 Events, Nationwide y Over 1 million walkers participate y Major Cities

Event Sponsorship: Start! Heart WalkLocation 350 walks across the nation Budget ~ $1 million Metrics Registration

Fiber One Girl Scout Cookiey Special Edition CookieCobranded with Fiber One y Nearly 70% Proceeds retained by Girl Scouts USA y 200 Million Boxes sold annually

Fiber One Girl Scout CookiePlacement Nationwide Budget R&D-$220,000 Production-$290,000 Metrics Order Information

Timeline

AppendixTarget MarketDemographics Psychographics Consumption Constellation Budget Distribution

Splash PageQuiz Budget

Component Objectives Smartwater Co-brandCoupon Budget

Current Advertising Spending Total Budget

Print AdPlacements Recent Magazine Schedule

Event Sponsorship Girl Scout Cookie

Target Market DemographicsFiber Oney 90% Women y 85% Married y Within 40s or 50s y 61% Attended/Graduated College y 65.4% Employed y Income over $65,000 y Have children under 18

Fit Consumery 52% Women y 72% Married y 64% under 50 y 37.4% Graduated College y Income over $75,000 y Have children under 18

Target Market PsychographicsFiber Oney Body conscious but aspiring to make a change y Busy lifestyles: Balancing work and family y Primary grocery shoppers y Light excersize incorporated into daily routine y Conservative values

Fit Consumery Health conscious- high priority and spend time managing it y Busy lifestyles: less time with family and more time individually y Rarely get sick y Looking good is key value y Liberal values

Target Market Consumption ConstellationFiber Oney Weight Watchers approved itemsy Jell-O y Stevia y Smart Ones frozen meals

Fit Consumery Organic food y Health productsy Kashi y Smart Balance y Lean Cuisine

y Athletic attire y Home-exercise equipment y Pain relievers

y Gym memberships or equipment y Athletic attire

Component ObjectivesCo-Brand: SmartwaterExpand market Brand awareness Rebrand image

rint d

Brand awareness Rebrand image

Girl Scouts: Fiber One Cookie Event Sponsorship: merican Heart ssociation Website: How does fiber fit in your life?

Brand awareness

Expand target market Brand awareness Engage consumer

Engaging consumer

Smartwater Co-Brand Detaily Effectiveness measured by:y Coupon Efficiency Ratioy Incremental Purchases / Total Purchases

y Aided and Unaided Recall in Coupon Areas

y Other Co-Brand Optionsy Joint Ad Campaigny Use of Smartwater s Celebrity Endorsers

y Event Co-Sponsorshipsy Breast Cancer Walk (Expand Smartwater to Fiber One Market) y Large Marathons (Expand Fiber One to Smartwater Market)

Co-Brand Coupon BudgetFace Value of Coupon: $1 Number of Coupons: 8,000,000 % of coupons to be redeemed: 5% % of coupons used that would be incremental: 50% Printing and distribution costs: $.01 per coupon Processing costs: $.10 per redeemed coupony $8,000,000 WORTH OF COUPONSy y y y 8,000,000 x 5% = 400,000 COUPON REDEEMED 400,000 x 50% = 200,000 COUPON INCREMENTAL 8,000,000 COUPONS/ 1000 COUPONS = 8000 x $10 = $80,000 COST FOR COUPONS 400,000 REDEEMED COUPONS x $0.10 = $40,000

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GENERAL COSTS REDEEMED TOTAL COSTS

$80,000 $40,000 $120,000

Event Sponsorship Detaily Targets adults (both male and female) 35-54, workers y Promotes Physical Activity y Target market is busy, therefore less active, don t have time to exercise y Start! Promotes 30 minutes a day of walking to extend life and become healthier

Girl Scout Cookie Detaily Plausible due to question on Girl Scouts Website:y Q: Who Selects the Cookie Varieties? y A: Licensed bakers can offer up to 8 varieties of Girl Scout Cookes; only 3 types are mandatory: Thin Mints, Do-si-dos, and Trefoils. The National Girl Scout Organization reviews and approves all varieties proposed by the bakers. Any of the five optional cookies can be changed every year. Each bakery names its own cookies, so Girl Scout Cookies that are quite similar may have different names. Suggestions for new cookies are welcome, but the national Girl Scout organization can make no promise to use them.

Girl Scout Cookie Distributiony200 million boxes of Girl Scout Cookies are sold in the U.S. every year. Girl Scout Cookies represent five of the top fifteen varieties of cookies sold in the U.S. annually, Several goals of the Girl Scouts are: y Encouraging girls' healthy living and promoting girl-positive media images; skills in sports, natural recreation Cohesive with our target market, specifically moms & dads who may have daughters in Girl Scouts or may have friends, gym buddies, or coworkers with daughters in girl scouts. (parents bring those order forms everywhere!) Girl scouts promote healthy living, outdoor activities, and skills in sports for girls, which is why we believe our Fit Consumer will be associated with or be willing to support girl scouts through cookie purchases.70% proceeds retained by Girl Scouts USA after the producers and bakers are paid.

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Gives our fit consumers a more healthy indulgence, guilt free, can still enjoy girl scout cookies (taste, nostalgia, etc.) without drastically sabotaging their diets. Also can support their kids or their friends kids and enjoy a comparatively beneficial cookie to the usual Thin Mints or Samoas. Plus limited availability may incite purchases and help our consumers justify their purchase. By associating Fiber One with the tradition and reputation of Girl Scout cookies, we will be able to generate brand awareness and get Fiber One products into the consideration set of more consumers. Nearly 2.4 million girl scouts means nearly 2.4 million little marketers and 2.4 individual distributors even if only 10% (1 out of 10)of Girl Scouts sell a box of Fiber One Girl Scout Cookies, that s still 240,000 boxes sold! Fit consumers generally resist trying new things but Girl Scout cookies are nostalgic, charitable, and historic, and being associated with GSC may help Fiber One get a figurative foot in the door.

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Girl Scout Cookie Budgety Contact and commission ABC bakers or Little Brownie Bakers to develop a recipe in cooperation with Fiber One, that can deliver 35% of the DV of fiber in a twocookie serving size. R&D costs: http://annualreport2009.kelloggcompany.com/fh-10K.html Kellogg s spent 179 mil on new product R&D in 2007 and launched over 40 new products globally, meaning if distributed evenly is nearly $4.5 million invested in the development of each product. Estimate that a product developed for 3 months with exhaustive distribution and only available through direct order or purchase (no online sales, etc.) will cost no more than a few hundred thousand dollars. If the ordinary Kellogg s products are expected to have an estimated five-year life span, only $895,000 are spent per year of expected product lifespan. Girl Scout cookies are only available 3 months out of the year (girlscoutshcc.org), so we can estimate 25% of this cost, or about $220,000. According to girlscouts.org, 30% of cookie proceeds are returned to the baker to cover their costs. This is about $1.20/box. If we can project sales of 240,000 boxes (because we are hoping 10% of scouts sell a box), production costs will be around $288,000 total y

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Splash Page Quiz Detaily Questions1: Gender 2: Age 3: Weight 4: How many children Age of youngest y 5: Fitness level y 6: Most stressful meal y y y y

y Rec d Productsy Smartwater y More Children/Youngery Bars y Toaster pastries y Muffins

y Fitness Levely Low y Medium y High

Splash Page Budget

Primary Print Ad Placementsy Women s Health Magazine y Fitness Magaziney y y y 11 Million Audience 92% Female 65% Aged 18-49 $169, 145 for full-page y y y y 7 Million Audience 74% Female 66% Aged 18-44 $148,000 for full-page

y Parent Magaziney y y y 15.3 Million Audience 82.3% Female 88.5% Aged 18-49 $174,500 for full-page

Secondary Print Ad Placementsy O, The Oprah Magaziney y y y 15.6 Million Audience 88% Female 60.7% Aged 18-49 $153,745 for full-page y Entertainment Weeklyy y y y

10.8 Million Audience 59% Female 76% Aged 18-49 $160,470 for full-page

y Cosmopolitan Magaziney y y y 18.3 Million Audience 86.2 % Female 86.2% Aged 18-49 $222,400 for full-page

Current Magazine ScheduleProduct Fiber One Yogurt Fiber One Yogurt Fiber One Yogurt Fiber One Yogurt Magazine Weight Watchers Weight Watchers Weight Watchers Weight Watchers Date Jan 01, 2010 Mar 01, 2010 Jul 01, 2010 Sept 01, 2010 Page # 39 49 29 55

Current Advertising SpendingNetwork TV Cable TV Spanish Language TV Syndication Magazines Internet Total

$3,995,300 $14,258,900 $10,996,800 $807,800 $439,000 $306,500 $33,504,300

Total Campaign BudgetSmartwater Co-Brand Print Ad Splash Page Event Sponsorship Girl Scout Cookie Total

$120,00 $2,949,870 $10,000 $1,000,000 $510,000 $4,589,870