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IMC Gardenburger
Case AnalysisSuman Saha
14/245
Analyses of current marketing plan
• Grass roots movements• Cultural creatives• Specialty foods
IMC for mainstreamMeat aisle slotting
Placement and position
Food Network week (Veg Week)Branding, advertising, PRFood Network Commercials
Gardenburger prize giveaway must register onlineCRM, Promotion, Advertising
Creative recipe contestCoupons, direct mail, web advertsCRM, Promotion, Advertising
PSA on cost reductionProduction and will run for free in PSA slotsPosition, PR
Frozen meals on the goNew packaging
package, placement, position
Proposed Growth Strategy
• Brand the Veggie Patty Category• Leverage the brand into new channels (retail
70% penetration, 6 SKUs)• Support expansion with advertising and
promotion• Strengthen leadership position in current
channels (food service, club stores, natural food stores)
• Develop and introduce new products
YES: Branding the Veggie Patty Category
• Category doesn’t have a “name” yet• Gardenburger marketing has focused on
association with veggie patty, not ALL meat alternatives
• In better position than competitors: self-descriptive name– Worthington Foods: MorningStar name means
nothing and has way too many associations– Harvest Burgers are Pillsbury: different associations– Boca Burger has no name associations
YES: Leverage Brand into New Channels
• Need to Cross the Chasm from “cultural creatives” to “health modifiers”… and they buy in grocery stores– Target: women aged 25-54, looking for convenience, taste,
and healthy alternatives to balance diet– Differentiation: taste, quality ingredients, convenience
• To increase brand awareness, product must have widespread availability
• Capitalize on mainstream “Health” movement• Worked at Quaker: granola, oatmeal, waffles, Gatorade• Veggies are mainstream, Soy is not—better fit
YES: Support Extension With Ads & Promo
• Necessary to increase brand awareness– Health modifiers less informed than “cultural
creatives”– Word of mouth won’t suffice– Mainstream = increased competition
• Trade promotion necessary to get shelf space and move consumers up the hierarchy of effects to trial
• MorningStar advertising at 10X, must respond– $11MM to $1.5MM, $14MM to $3.8MM
YES: Strengthen Leadership Position in Current Channels
• Position in club stores is necessary for mainstream availability
• Position in natural food stores is critical for association with “health” to maintain credibility
• Position in food service channel will drive brand awareness
YES: Develop and Introduce New Products
• Differentiation based on flavor and taste needs to be supported
• Brand loyalty developed through introduction of variety
• Should leverage brand awareness, perception of “quality”, and health-movement
• “Mainstream” tastes change over time
NO: Branding the Veggie Patty Category
• Just changed name to Gardenburger in ‘97• Not 1st to market or market leader in a
competitive space (23% to 46% share)– May generate primary demand that buys from
MorningStar– Will be Super Expensive
• Different naming conventions in food service versus retail
• Will limit future product extensions
NO: Leverage Brand into New Channels
• 6 SKUs are arbitrary and confusing to customers who don’t know the brand yet– Testing to identify top “flavors” per city– Should limit expansion to NE, SW, and NW…not Midwest or
SE• Distribution expansion will be expensive– Requires massive resources– No current relationships with national distributors: will take
time• Expanding distribution without differentiation is
ineffective
NO: Support Extension With Ads & Promo
• Expansion needs to be targeted• Can’t compete with MorningStar spend– Competition may drive additional spend and
drive profit from entire industry• Without brand awareness, category growth
benefits market leader
NO: Strengthen Leadership Position in Current Channels
• Position in health food stores isn’t necessary, as cultural creatives won’t buy “mainstream” products
• Position in food service channel needs to be targeted and use same naming conventions to avoid diluting brand awareness
NO: Develop and Introduce New Products
• “Gardenburger” name limits possible brand extension
• Extensions could dilute association with “veggie burger,” not meat-alternative
• Additional SKUs will confuse customers
Market Analysis
8%
54%13%
25%Gardenburger
Mornignstar Farm
Others
Boca Burger
Target Group
• Demographics:• Adults aged 25 – 54 (focus on women)• College-educated• Household incomes of at least $50,000
• Psychographics• Women: Cultural Creatives and saviors of the environment.• Who frequently, but only intermittently, demonstrate behavior
characterized as 'healthy eating/active lifestyle.‘• Firmly committed vegetarians, quasi-vegetarians, 'true believers,'
and• the 'involuntary healthfuls’.
Advertising Strategy
• Television, print, OOH, PR, price promotions during peak holidays.
• The campaign centering on the slogan "Eat Positive" and stressed Gardenburger as "all-natural, healthy and environmentally friendly.”
Consumer Insights • Why vegetarian/meat alternatives?
– Health impact of the vegetarian lifestyle: Improved nutrition Information about the benefits of avoiding animal products is being spread more effectively, with more coherent and compelling messaging, which has led to improved nutrition habits.Weight loss vegetarian diet—including the use of substitutes for meat, cheese, and other animal products—offers an effective way to maintain a healthy weight.
–Social and lifestyle factors: Concern for the lives of animals Many individuals consider the killing and subsequent eating or other use (e.g., fashioning of leather products) of animal products to be unethical, unnecessary, or cruel.Convenience Processed vegetarian foods offer faster, simpler preparation and prolonged shelf-life compared to their animal product counterparts. Garden burgers, for example, cook in approximately half the time as a beef-based hamburger. 20% of vegetarians cited ease of preparation as one of their primary reasons for choosing a vegetarian diet.
Consumer Insights
• Why vegetarian/meat alternatives?–Environmental impact:
The production of meat and animal products to meet consumer demand places a growing burden on the natural environment. Two thirds (65%) of U.S. vegetarians and vegans choose to be so in order to be healthier, compared to those listing religion (13%) or allergies (10%) as a main reason.
Various mediums of Advertisement• Internet– We can target how we want: minimal waste– Cost efficient
• An episode of a television show that airs initially as an Internet download or stream.- Product integration - Sense of affiliation
• Games – funny games with related to natural food • Video ads placed on video platforms• Create buzz about the game and Gardenburgers in general
through various blogs to create evangelists and a potential WOM.
Strategies• Growth Strategy
– Brand the veggie patty category– Leverage the brand into new channels (achieve a min. of 70%
penetration for six SKU¡¦s)– Support expansion with advertising and promotion– Strengthen leadership position in current channels (food service, club
store, grocery)– Develop & introduce new products
• Product Strategy: Focus efforts primarily on veggie patty category rather than meat alternatives.
• Distribution Strategy: Aggressively expand distribution into the mainstream retail grocery channel.
• Sales Strategy: Leverage the original Gardenburger veggie patty and its flavor variants to position its product with the trade as the number one veggie patty in each of the food service, natural food store and club store channels in order to become the number one veggie patty in the mainstream retail grocery channel.
Strategies• Marketing Strategy– Build awareness of the category and the brand.– Position the brand as healthy, good tasting and
convenient.– Target the brand to the health modifier segment.
• Pricing Strategy: Slightly higher price than the competition due to company's perception that their product is premium