ADVERTISING PLAN

MGT174 / BY03

Advertising Plan Outline

• PRODUCT KNOWLEDGE: ABOUT OUR YOGURT

– Product research: Nutrition Facts and Health benefits of Nourhealth Yogurt

• MISSION, VISION AND CORE VALUES

• MARKETING PRINCIPLES USED IN OUR YOGURT PRODUCT

– Marketing Plan

• Internal and External Analysis

– Marketing Tools/Mix

– Market Segments

– Market Position and Value Proposition

• ADVERTISING TECHNIQUES

– Packaging

– Advertising promotions used

– Advertising Plan

• Advertising Budget

• Media Used

• Structure of a Campaign Plan: Message Strategy and Media Strategy

• Advertising Strategies: INFORMATION, INFLUENCE, EMOTIONS & EXPOSURE

PRODUCT KNOWLEDGE

BASIC INFORMATION ABOUT YOGURT» Yogurt is a dairy product produced by bacterial fermentation of milk.» Bacteria used to make yogurt is known as yogurt cultures

• NUTRITION FACTS AND HEALTH BENEFITS– Yogurt is nutritionally rich in protein, calcium, vitamin B6, vitamin B12 and riboflavin. Riboflavin-help treats migraine.

– Vitamins B6 and B12 help our brain in performing its functions. It also helps the body to produce energy by the

process of metabolism.

– It has nutritional benefits beyond those of milk. Lactose-intolerant individuals can sometimes tolerate yogurt better

than other dairy products, because the lactose in the milk is converted to glucose and galactose, and partially

fermented.

– Ingestion of yogurt also resulted in fewer reports of diarrhea or flatulence than did a similar quantity of lactose

ingested in milk or a water solution.

• 50% reduction in the risk of developing high blood pressure among people eating 2-3 servings of low-fat

dairy a day (or more), compared with those without any intake. (Source: www.webmd.com)

• Scientifically tested. Nourhealth Yogurt, corrects the ph balance of the skin.

– When ingested, the yogurt has probiotics (good bacteria) that strengthens the immune system to

fight acne problems.

PRODUCT KNOWLEDGE

(Source: Jean Mayer U.S. Department of Agriculture Human Nutrition Research Center on Aging at Tufts University)

Our Claim: Yogurt cuts down body fats

• Organic Yogurt with active cultures help detoxify or clean the intestine. Making it

easier to absorb nutrients from the yogurt itself that eventually stimulating the

metabolism, helping the body system burn more fats.

http://voices.yahoo.com/yogurt-cure-serious-acne-1049885.html

Mission

“Nourhealth Yogurt is committed to creating a healthy nation who consistently serve the highest quality, cultured yogurts and provide outstanding service in a vibrant store atmosphere.”

Vision“Nourhealth Yogurt will be the most loved and respected yogurt company nationwide."

Core Values Compassion, fairness, honesty, responsibility, respect for others.

NOURHEALTH ORGANIZATIONAL VALUES

MARKETING PRINCIPLESAs part of the decision process, our objective is to introduce

and sell our Yogurt products. Given the stated internal and

external

INTERNAL ENVIRONMENT: 5M’s

1. Man: Applying the dvertising organizational structure in our group

• Marketing Manager: Gil Alfonso

• Advertising Manager: Ahmad Siraj

• Category Manager: Juan Paolo Caponpon

• Brand Manager: Matthew Gacutan

2. Machine: Advertising Equipment, inventories necessary to sustain operations– E.g. machines for fermentation of Milk products, and warehouse.

3. Materials: Packaging materials, promotion tools (e.g. Flyers)

4. Money: Investment Capital Total of P 5,000,000. In more expanded context, this is about the

advertising budget.

5. Minutes: The traffic pertaining to the strategic time the advertising agency will launch our

advertisement.

EXTERNAL ENVIRONMENT

PEST

– Politico-Legal: Criteria that we will consider in our advertising plan such as the freedom of

speech, Ad Board Ethics and Trade Practices.

– Economic: Economic instability will have direct impact in our advertising

• (I.e. change in advertising expenses.)

– Socio-Cultural: a market segment we are trying to target selling our Yogurt, especially

subsets such as consumer’s social status, culture, sub-culture and family life cycle.

– Technological: Yogurt is a very versatile food. Hence, we should establish product

development to provide other yogurt selections. (I.e. Yogurt that can be enjoyed on its

own, used as a dip, or mixed as a sauce or dressing, or Yogurt containing ingredients such

as fiber and omega 3 fatty acids)

SWOT

– Strength: Yogurt features healthy attributes that is essential towards human

health. Thus, there is always a market for yogurt.

– Weaknesses: n/a

– Opportunities: Yogurt is a very versatile food. It can be enjoyed on its own, used

as a dip, or mixed as a sauce or dressing. By choosing our target segments, we

have the opportunity to take advantage of specific yogurt demands that might

arise.

– Threats: Threat of substitute for yogurt and the threat of being a new entrant in

the market.

EXTERNAL ENVIRONMENT

5 FORCES

– Threat of Substitute: Unless a consumer is lactose-intolerant, they usually prefer

milk over yogurt.

– Threat of Entry and Competitive Rivalry: We are new entrant in the market; our firm

should immediately construct market stability to stand out over competitors.

– Bargaining Power of Consumers: for the sake of penetrating the market and creating

a brand identity, we are initially passive to consumer's bargaining power.

– Bargaining Power of Suppliers: We lessen the emphasis on this factor because this is

more on Operations’ standpoint and not in Marketing, particularly Advertising.

INTERNAL ENVIRONMENT

MARKETING TOOLS

“Right Product at the right price, at the right place and at the right time (advertising

traffic).”

Product: Nourhealth Yogurt

Marketing Mix Middle Class Working Class Class C

Pricing Strategy Premium Premium Premium

Placement

GloriettaSM Mall of AsiaFort High StreetAlabang Town Center

Robinson’s MalateAlong Makati AvePaseo de RoxasRufino st.TordesillasSalcedo St.

SM ManilaSMMegamallSM North EdsaSM PampangaSM MarilaoSM BacoorSM LipaSM Sta. RosaSM Calamba

Promotion Billboard, Radio Radio, Internet Radio, Internet, Post Ads

HYBRID MARKET SEGMENT FOR YOGURT PRODUCT

• Geographic by size: We are targeting consumers living in the urban areas like Makati, Taguig, Quezon City, Manila, Pasig,

Paranaque and Muntinlupa. We also include in our target market selected Sub-urban areas like Mandaluyong, , Caloocan,

and other major cities in Region III and IVA such as Angeles Pampanga, Marilao Bulacan, Bacoor Cavite, Lipa Batangas, Sta.

Rosa and Calamba Laguna.

• Demographic by age: 21 to 45 years old. The age segment is clustered into two: 21-30 or the Young professionals and 31 to

45 years old referred to as the executive/managerial stage.

• Demographic by income: P18k to P25k. Generally, the income bracket is consistent to occupation. Consumers receiving this

range of income are those who can avail yogurt regularly.

• Psychological by need motivation: Health needs. Young professionals are inclined to perform personal healthy activities

such as exercising plus, modifying their diet programs.

• Psychological by personality: Extrovert (always updated about the new and best products launched in the market. Yogurt is

a sophisticated, fast-moving product where people “on the trend” mostly catch this product.)

• Psychological by Perception: A consumer whose behavior to consumption is Low-risk (Buys freely. This is a type of

consumer who immediately tries new and appealing products.)

• Psychological by Attitude: A type of market segment where a consumer, has a positive attitude/outlook towards the

nutritional benefits of drinking yogurt.

• Psychographic by Lifestyle: Primarily our target consumers are those who live a healthy lifestyle. Second are those lives like

Couch potatoes; they do not exercise yet they compensate it by eating and drinking health-sensitive products including

yogurt.

• Socio-cultural by Social class: We cluster our target market into 3 social classes: A, B and upper middle class. Generally,

these three classes of consumers focus on their health. They surpassed the first, second and third hierarchy of needs

wherein they have job security and have plenty of personal belongings. Hence, they proceed to perform the self-esteem

need that requires being healthy.

• Socio-cultural by family life cycle: We are targeting consumers in a Bachelorhood stage to develop a marketing campaign.

This consumer who’s in the stage of bachelorhood is occupied with meeting, dating and mating. Thus, they have direct

intention of eating or drinking healthy products that’ll improve their physical appearance, making them attractive.

• Use-related, by Usage rate: Given those sets of segments, we are also targeting consumers who’ll drink yogurt frequently.

• Use-situation, by Time: Generally, Health-conscious people will drink yogurt during morning time. This is relevant for our

advertising plan.

• Use-situation, by Objective: A yogurt drinker usually drinks yogurt as part of their meal (breakfast).

Sample Profile

Living in Urban Area

Healthy lifestyle

Young professional

inclined to perform

personal healthy

activities

Extrovert

social class A

Bachelorhood stage“I drink yogurt frequently”Health-conscious“Yogurt is part of my meal “

Market Positioning Value Proposition:

”To busy professionals who are

seeking for a deliciously-nutritious

drink that complements their diet

program, Nourhealth Yogurt is a

cultured-health drink organically

containing billions of active

probiotics that stimulates the

immune system for fat burning and

faster digestion.”

ADVERTISING TECHNIQUESBudgeting

Broadsheet: Philippine Daily Inquirer

Why we choose this: Country’s most widely read and circulated newspaper.

Distribution: Nationwide

Readership: 2.7 M readers per day

Traffic/Day to advertise: Every Sunday (Base Rate P407/cm)

Frequency: We will advertise in newsprint twice a month.

Advertising Rate: Source http://www.inquirer.com.ph/pdf/pdi_display_rates.pdf

¼ page with Full Color P 87, 912

Add: 20% Position surcharges (FrontPage Lifestyle) 13, 187

Gross: P101, 989

Add: 12% VAT 12, 132

Total P114, 121

• 1 Month (P114, 121 x 2 times advertising) P228, 242

• 1 Quarter January to March 2013 (P114, 121 x 6 times) P684, 726

Magazine: Enrich Magazine

Why we choose this: Only P65 per copy, affordable for everyone and is very popular.

Distribution: Nationwide through Mercury Drugstore

Readership: 500,000+ readers monthly

Traffic/Month to advertise: Monthly

Frequency: Every first Sunday of the Month

Advertising Rate: Source httpwww.enrich.com.phadvertisingrates.html

½ page with Full Color P 33, 000

Add: Inside Covers P 75, 000

Subtotal P108, 000

12% VAT 12, 960

Monthly Total P 120, 960

X 1 year contract (January 2013 to January 2014) P1, 451, 520

Less: 5% Frequency Discounts 72, 576

Annual Adv. Rate for Enrich Magazine P1, 378, 944

Single Face Billboard: COCJIN RYMAR ADVERTISING (Rymar Cocjin Contact Person)

Advantage: Billboard availability + strategically located within our target market.

Billboard locations:

1. Edsa Guadalupe Bridge (South bound)

2. Makati Ave. cor. Jupiter St.

Frequency: Subscribed for 6 months (Launching on January to June 2013)

Advertising Expenses: source COCJIN RYMAR ADVERTISING and Volumetarp Proprietor

• At Edsa Guadalupe (46ft x 23ft)

Advertising Monthly Rate P390, 000

Add: 12% VAT P 46, 800

Billboard expenses (P14 x 1,058 sq ft) P14, 812

Subtotal P451, 612

• At Makati Ave (40ft x 40ft)

Advertising Monthly Rate P260, 000

Add: 12% VAT P 31,200

Billboard expenses (P14 x 1,600 sq ft) P22,400

Subtotal P313, 600

Total Monthly Billboard Expenses (P451, 612+ P313, 600) P 765, 212

Edsa Guadalupe Bridge

Makati Ave. corner Jupiter Street

Media Mix and Scheduling

Click Here

Total Advertising Expense

News Print: Philippine Daily Inquirer P228, 242

Magazine: Enrich Magazine P 120, 960

Single Face Billboard at Edsa Guadalupe Southbound P451, 612

Single Face Billboard at Makati Ave. corner Jupiter St. P313, 600

Total Advertising Expense P1, 114, 414

Conclusion

We were challenged by determining the advertising rates for radio and television.

• Presuming: We will advertise on radio;

1. Radio Station: Magic 89.9

2. When to Launch

1. January 2013 – Consumers has their own New Year’s resolution to start a healthy lifestyle

3. Times: 7 – 8am (Target audience usually tuned in these times before, during and after

doing an exercise) and 10 – 11am (Appealing to audience, they crave something for

their appetite.

Note: The figures in the MS Excel is a presumption.

Carl Dair’s Typography

Contrast of Size Bold text on Variant name

Contrast of weight Font Arial

Contrast of colour emphasis on tonal value

Contrast of structure “different volume, same voice”

Contrast of texture letter-distance approach

Contrast of direction all texts are arranged horizontally.

Packaging

MEDIA MIXElectronic

Radio (New)

Radio (Exposure)

Broadsheet

Electronic: Nourhealth Yogurt Website

Radio – related to Introductory stage

Aired at Magic 89.97:00am

Radio – related to Maturity stage

Aired at Magic 89.97:00am

TV ads Aired at GMA – Unang Hirit (6-9am)

ADVERTISING STRATEGIES

Information (Introductory)

1. Product– we will emphasize the product on advertising because it provides product

information and benefits.

– With guarantees (E.g. DOH, BFAD)

• Nourhealth Yogurt does not

only aids digestion, it also

treats acne problems.

• Strengthens the immune system

2. Price

– We will emphasize the price because the supply is abundant. (E.g. Milk

used for fermentation of Nourhealth Yogurt were imported from New

Zealand.

Influence (Growth)

1. Commitment: Large changes

BeforeAfter

Nourhealth Yogurt“Thanks to Nourhealth diet, it helps me lose weight in

two months” –Mr. Gacutan

3. Benefits– We will emphasize the benefits because it is new to the market.– It has long term benefits.

Function: Direct message through Packaging

Emotion (Maturity Stage)

1. Fear Threat likely (E.g. It prevents colon cancer, helps digestive system to function well, and nourishes your health. )

Nourhealth Yogurt consumer are less likely to have colon cancer.

Boost the immune system and helps the internal organs function well.

Exposure (Pre-decline Stage)

Trust - Through experience we came up with new variants ( flavors).

Thank you

Group II

Alfonso Jr., Gil

Caponpon, Juan Paolo

Gacutan, Matthew Efraim

Siraj, Ahmada