created’by:clinton’cunningham,’jessy’davis,’ryan’ … ·...
TRANSCRIPT
M K T 3 9 0 : P r o m o t i o n a l M a n a g e m e n t a n d I m p l e m e n t a t i o n
Created By: Clinton Cunningham, Jessy Davis, Ryan Fletcher, Marissa Schroeder, and SeHee Han
Spring 12
08 Fall
This proposal includes the marketing objectives; target market, communication objectives, marketing communication mix, and budget break down to suggest how Birds Eye could implement a promotional campaign to incorporate new media techniques.
Executive Summary
Birds Eye has been able to handle successful traditional media over the years,
but the media consumption habits are changing. New innovations including
expansion of the Internet, smart phones, tablets, and a huge shift into the digital age
has not only changed the way the world works, but also how audiences are receiving
their media messages. This proposal includes the marketing objectives; target
market, communication objectives, marketing communication mix, and budget
break down to suggest how Birds Eye could implement a promotional campaign to
incorporate new media techniques.
Marketing Objectives
The marketing objectives that were created were; increase Birds Eye sales by
a minimum of 10 percent by May 1, 2013 increase Birds Eye awareness among
women 55-‐64 by 10 percent by May 1, 2013, and increase Birds Eye awareness
among men 35-‐44 by 10 percent by May 1, 2013.
Target Market
Two target markets were established in objectives to reached the most
segmented type of audience that would most likely receive the message and
purchase the product. The primary target market consists of Birds Eye’s focus is;
white American women, married with children, between the ages of 55 and 64 that
have a postgraduate degree and a professional occupation who reside in the
Northeastern Region of the US, maintain a household income of $75,000-‐ $149,999.
These consumers are looking for a quality convenient product that they can utilize
on a daily basis. In order to reach a maximum audience, a secondary market of
African American men, divorced with children, between the ages of 35 and 44 with a
management/business occupation who reside in the southern region of the US and
maintain a household income of $50,000-‐$59,999 was added to the mix.
Communication Objectives
The communication objectives for this proposal is to create an on-‐going
awareness of Birds Eye as “the” quality brand and the many product lines that they
offer to our target market as well as the rest of the consumer base.
Marketing Communication Mix
We have advised Birds Eye to heavy up in the Northeastern and Southern
market regions of the United States while focusing on our media advisements. We
chose media that is preferred by the target markets such as the Food Network,
Cooking Channel, for television. We will also be implementing our sales promotional
campaign through coupons, punch cards, and interactive displays and sampling.
Budget Breakdown
The total budget that is proposed is $15,000,000. The largest percentage
budget allocation is 89% in traditional media. The percentage of budget spent was
allocated to: National budget -‐TV 14.7%, Radio 43%, Magazine 1.1%, Internet
19.5%, Print 6%, Sampling .5%. The Flighting Schedule-‐ we are going to heavy up in
March, April, November, and December with our traditional media. Our sales
promotion represents about 11.7% will run along with the traditional media to help
support continues top-‐of-‐the-‐mind awareness.
Table of Contents
Executive Summary ................................................................................................................ 2 Marketing Objectives ....................................................................................................................... 2 Target Market .................................................................................................................................... 2 Communication Objectives ............................................................................................................ 3 Marketing Communication Mix .................................................................................................... 3 Budget Breakdown ........................................................................................................................... 3
Situation Analysis .................................................................................................................... 5 Client Overview ................................................................................................................................. 5 Client’s Current Creative Strategy ............................................................................................... 6 Industry ................................................................................................................................................ 6 Competitive Assessment ................................................................................................................. 8 Target Market .................................................................................................................................... 9
Marketing Strategy ................................................................................................................... 10 Marketing and Communication Objectives ........................................................................... 10 Positioning ....................................................................................................................................... 11 Detailed Budget .............................................................................................................................. 11 Evaluation Procedure ................................................................................................................... 12
Promotion Strategy .............................................................................................................. 12 Internet Strategy ............................................................................................................................ 12 Sales Promotion Objective .......................................................................................................... 14 Sales Promotion Strategy ............................................................................................................ 15 Traditional Media Objectives ..................................................................................................... 17 Traditional Media Plan and Scheduling ................................................................................. 19 Media Units ..................................................................................................................................................... 23 Rationale .......................................................................................................................................................... 23
Appendixes .............................................................................................................................. 24 Flow Chart ........................................................................................................................................ 24 Media Efficiencies .......................................................................................................................... 25 Primary Research Instrument ................................................................................................... 28 Reference List .................................................................................................................................. 28
Situation Analysis
The situation analysis that was conducted to prepare the brief that was
developed into a campaign included the client overview, the client’s current creative
strategy, the frozen food industry, a competitive assessment, and target markets
that will maximize the greatest amount of dollars spent.
Client Overview
Pinnacle Foods Group attained Birds Eye in November of 2009, the estimated
purchase price was about $1.3 billion dollars and Birds Eye alone has earned around
$930 million in total sales. The Blackstone Group owns Birds Eye ’s parent company
Pinnacle and its products can be found in about 80% of homes in the United States
(Capital). This purchase was made possible by new debt financing and contributions
from The Blackstone Group (Capital). Birds Eye marketing mix contains their
product lines of Birds Eye Pure &, Birds Eye Pure & Simple Blends, Birds Eye Sauced
& Seasoned vegetable lines which is what we are concentrating our focus in. Birds
Eye’s product line currently contains six different product lines, the vegetable line
we are specializing in, Birds Eye Steamfresh vegetables, Birds Eye Voila! complete
frozen dinner line, Birds Eye C & W vegetable line, Birds Eye McKenzie’s ‘Chub Corn’
and ‘Southern Vegetables’ line, and lastly, Birds Eye Freshlike vegetable line. Birds
Eye mains a reasonable price schedule for all of their products that works into their
competitive advantage against their competitors. Birds Eye products place where
they can be purchased includes major retailers such as Wal-‐Mart and Target along
with larger chain grocery stores like super markets, down to regional grocery
stores, and even local stores. Birds Eye products can also be found in convenience
and necessity stores. Birds Eye current promotion strategy is explained below in
their current creative strategy paragraph.
Client’s Current Creative Strategy
Interactive website integrated with Facebook and opt-‐in email subscription,
social media profiles of Facebook (344,000 likes), Twitter (28 followers), Raven
Tools internet marketing platform, promotion with U.S Department of Agriculture,
“Share the Wonder” grant program, editorial content on Facebook and website, live
cooking demos, television, and radio spots are all a component of Birds Eye’s
current creative strategy.
Industry
Birds Eye is ranked around tenth in comparison to all other competitors in
the industry. It is our assessment that potential opportunity could be to revamp how
these products are marketed at consumers and possibly even take the organic route.
Threats include other brands already moving into these areas and there is
possibility of losing rank if Birds Eye does not keep up with the competition. The
market for these products is growing and this is a very lucrative time to be in the
frozen foods industry. The frozen food market consists of fish, seafood, meat
products, potato products, vegetable, fruit, pizza, ready meals, bakery products and
desserts. According to the industry profile done by Datamonitor in 2011, the US
frozen food market’s value grew 2.4% in 2010. Furthermore, the US frozen food
market’s value is supposed to increase 13.1% by 2015. The US has experienced
growth in the frozen food industry but it only represents 16.3% of the total global
market value. The current state of the frozen food industry in the US is quite well,
and has room to grow and prosper in the coming years.
Supermarkets and hypermarkets are the leading distribution channel in the
United States in the frozen food market. Their buying power is high in the frozen
food industry because retailers can purchase large quantities and then negotiate
prices with the manufacturers. Datamonitor (2011) states, “retailers are unlikely to
be swayed by brand loyalty, but they will have to stock brand preferred by
consumers.” This can lead to the assumption that current lead manufactures can
easily be defused if other less prominent manufactures attract the consumer. The
frozen food industry is largely driven by consumer demand.
The Progressive Grocer states that the “vendors like ConAgra, Nestle and
Birds Eye are supplying frozen foods to drug and dollar chains.” The new outlet for
frozen food products is being seen as a good addition to traditional outlets. The drug
and dollar store allow manufactures to target consumer they have not previously
been reaching.
For the frozen food industry to maintain its high standards it must meet the
United States Department of Agriculture Food and Safety and Inspection Service
guidelines. Their mission statement states, they are “responsible for ensuring that
the nation’s commercial supply of meat, poultry, and egg products are safe,
wholesome, and correctly labeled and packaged.” Furthermore, the frozen food
industry must follow guidelines as presented by the American Frozen Food
Institute. AFFI states they are a “national trade association representing all aspects
of the frozen food industry supply chain, from manufacturers to distributors to
supplier to packagers.” The USDA and AFFI work as a twofold system to ensure
frozen food safety.
Competitive Assessment
The main competitors for the Birds Eye brand are Nestle, ConAgra Foods, The
Schwann Food Co., and Oscar Meyer. Nestle is the leader out of all competitors as
they are the largest Food/Nutrition company. ConAgra Foods is American based and
specializes in frozen/packaged foods and caters to the needs of many restaurants
and food service businesses. Schwann Food Co., specializes in frozen foods but takes
it to the next level by selling out of food delivery trucks. They also sell their products
out of catalogs and mailings. Oscar Meyer that is owned by Kraft Foods, and mainly
markets packaged meats and refrigerated goods. They are considered a competitor
on the basis of looking at refrigerated/frozen meals. Recent trends include a
moment towards organic products, ‘green’ packaging, and a more general
awareness for carbon footprint and sustainable approach to food industry.
Information collected and produced by Datamonitor
Target Market
A primary and secondary target audience was composed based on 2010 MRI
data using the highest index numbers to categorize two markets that the promotion
strategy is aiming to reach. The primary target audience is women, post graduate
degree, ages 55-‐64, professional occupation, HH $75,000-‐$149,999, currently reside
in north east region, currently married, children between 12-‐17, white, home value
$200,000-‐ $499,000. The secondary target audience consists of men, attended
college, ages 35-‐44, management/business occupation, HH $50,000-‐$59,999,
currently resides in south region, divorced, children under 12 Months, owns home,
African American race.
Marketing Strategy
As a whole, our group will use promotional tactics to revamp Birds Eye’s marketing
strategies. Our marketing strategy consists of the use of an extensive internet
strategy that expand social media networks and branches into mobile territory
along with a personal selling and sales promotion approach.
Marketing and Communication Objectives
The marketing and communication objects is to increase Birds Eye’s overall
revenue and in turn increase Birds Eye’s over all product awareness. The following
objective will help us do so:
1. Increase Birds Eye’s sales by 10 percent by May 1, 2013.
2. Increase Birds Eye’s awareness among women 55-‐64 by 10 percent by
May 1, 2013.
3. Increase Birds Eye’s awareness among men 35-‐44 by 10 percent by May
1, 2013.
Communication Objectives
The communication objects that are being strived for is creating an affluent and
superior quality image for Birds Eye’s frozen food products to the target market.
Positioning
Bird’s Eye sets itself apart from other frozen food brands because of the
brands overall marketing strategy to reach affluent individuals. The frozen food
business is meant for the upper class customer who wishes to serve restaurant style
meals at home. Bird’s eye is not just another frozen food but a fine dining meal for
families and friends. It is important for the consumer to recognize that Birds Eye
provides affordable nutritional frozen vegetables. The frozen food’s price and
general marketing strategy places it above all other frozen foods. Other frozen food
brands are meant for ease and convenience. Birds Eye provides easy meals, but that
are also made from premium flash-‐frozen veggies to ensure the maximum nutrients
in each bite. Birds Eye’s products place themselves above all other frozen food
brands because of their nutritional value, taste, and over all high standards for
superior quality.
Detailed Budget
Evaluation Procedure
In terms of measuring how Birds Eye can measure how their objectives can
be met, we can look at several variables that we have focused on in our project. The
first indication of measurement would be the amount of increased sales for the
specific promoted Birds Eye products. Other ways to measure objectives being met
would be to; analyze the amount of new followers on Social Media platforms during
the time of promotions, Twitter was a large part of what we felt that Birds Eye
needed to utilize more therefore by monitoring increased followers and their
location would satisfy that portion of measurement. The collector’s card we
included would also be easily measured by tracking the amount of consumers that
participated in this promotion. Nielson ratings could also prove beneficial in terms
of measuring advertisements that were included in the Birds Eye media budget.
Promotion Strategy
The promotion strategy will consists of a strong Internet strategy, sales promotion
strategy, traditional media objectives and scheduling, and a traditional media plan.
Internet Strategy
The Internet strategy proposed composes a social media and mobile
approach. Birds Eye is doing fairly well in the Facebook market; they currently have
344,000 likes and engage their audience pretty frequently and relevantly. One of
the tools that was noticed was the marketing platform, Raven Tools, which
composes everything online related together and analyzes social media metrics,
Google analytics, SEO optimization, and everything else digital. Birds Eye does not
have a Twitter base at all, their official account, @BirdsEyeVeg has not even tweeted
yet, does not follow anyone, and only has 28 followers. Having a strong Facebook
page is essential to the business, but Birds Eye is missing out on potential market
share and a more affluent audience that uses Twitter and our recommendation is
that they structure part of what they are currently doing on Facebook over to
Twitter. Send out timely messages, recipes, promotions, coupons, anything to
engage and interact with their audience. Since Twitter is a micro-‐blogging site, all
traffic will be directed back to the website page that lists locations where to
purchase Birds Eye. The next platform that can be expanded onto is Pinterest.
Pinterest is an online pin board that is very commonly used for recipes. More and
more retail establishments like Target are highlighting products in specials as well
so cooperative advertising with online retailers is a strategy that should be
implemented as well. Birds Eye should create a Pinterest profile with a very simple
username, even same as Twitter to maintain transparency across multiple social
media networks. The profile will show ‘pins’ of recipes that lead back to Birds Eye
website location page because the main objective is to increase sales, sending traffic
almost to direct purchase is more beneficial then anything else. Pinterest will
contain recipes, retail advertising cooperation highlights, individual products, and
re-‐pins from users using Birds Eye products. Part of the social media strategy will be
to go through and find influential people to follow both on Twitter and Pinterest.
With the growing digital age also comes the expansion of the Internet, which
is being led to more smartphones and mobile devices being used as an essential part
of daily life. The proposal to cover mobile would include creating an iPad, iPhone,
and Android application and a profiles on the mobile social network, Instagram. The
application would be a more user-‐friendly version of the website, but contain
recipes, photos, links to other social media sites, promotions, coupons, and location
of products. The Instagram profiles would contain the biography that would be a
brief description of company and include other social media profiles. The Instagram
account will contain only pictures, as it is an all pictures platform and contain
pictures of recipes, chefs, individual products, users with product, and anything else
Birds Eye related. There will also be the strategy to go through and follow influential
people and users that use product. Strengthening the social media strategy will help
increase sales that traditional media may miss by reaching a more affluent crowd
and general population together.
Sales Promotion Objective
In order to promote an increase in sales of Birds Eye brand frozen vegetables
by 30 percent among the target audience along the course of the yearlong campaign,
our agency is instituting a 12 month promotional campaign which will be
complementing and supporting our internet and traditional media strategies as
well. Our agency will be promoting Birds eye company’s sales by means of “possible
product change”, time-‐sensitive product punch cards, and product sampling
throughout the target audiences.
Sales Promotion Strategy
We will have 20% off coupons attached to all of Birdseye’s frozen vegetable
products during the first four months of the promotional year in order to create a
sense of urgency among loyal customers to “stock up”. Among the copy listed on the
coupons, mention of possible product alternation or elimination will be in bold to
increase the “stock up” effect among consumers while product development is going
on all throughout the company. By revealing the possible product change to the
consumers, the company receives the benefit of the loyal customers increased
purchases, while rewarding the customers for their product faithfulness by giving
them a better bang for their buck to help improve the business to customer
relationship. Along with the 20% off coupons, we will be purchasing floor print
advertisements to place among the aisles where much of Birdseye’s products are in
order to grow awareness and draw attention to the promotional program.
For the second phase of our promotional activities, our agency is
implementing and promoting time-‐sensitive punch cards that will last for the
months during the months of May, June, July, and August. These time-‐sensitive
punch cards will require the customers to purchase ten Birdseye products valued
over four dollars in the course of the four months mentioned above in order to
receive a mailed-‐in coupon that the customer will receive after sending in their
punch card, proof of purchase by example of the ten products UPC barcodes, into the
company within the four month period. This promotional activity plays on the
customers need to finish something or complete it once started, making a game out
of it which reaps rewards for the customer, and has been proven by many studies in
the last two decades. This method encourages new and previous customers to
purchase more of Birdseye’s products with the possibility of the customer failing to
return or full fill the requirements which in turn saves the company money by
relying on the fact that people simply forget or never get around to doing it.
For the third phase, or the remaining four months of the campaign, we will be
implementing product testing and sampling all across the target audience to heavy
up on the thanksgiving and other “big food” holidays. The cost savings involved in
this will come from the company’s use of near-‐expiration products for the sampling
to prevent dumping of the soon-‐to-‐be wasted food. This will attract customers and
potential customers by raising awareness throughout the prime “big food” months
across the United States. Some of the sampling will be of the basic products and
some of the sampling will be Birdseye’s products mixed and made into some of the
classic “big food holiday” or gathering dishes. Birdseye’s managers will distribute
the samplings and employees that volunteer to once again promote a positive
relationship between the customers and the company, which will be a major form of
cost savings.
Traditional Media Plan and Scheduling
We selected Pulsing schedule for ‘Bird’s eye’. We believe seasonal approach
can make ‘Bird’s eye’s sale maximize of efficiency but advertising need to be
continue. Consumer’s selection of food is not same with selection of clothes. It has
more sensitive caution. We need to give consumer credibility and trust. That is the
reason why we selected Pulsing schedule. We will emphasize advertising on March
to beginning of April (Easter), June to July (Independent Day), November
(Thanksgiving Day) and December (Christmas and New Year), especially heavy up
on November and December. Sales of food will increase for consumer’s family
events or other events. Below varying media will adjust on our marketing
Similar with Daytime TV, but cable is cheaper than net TV and we can select the
specific group.
Media Vehicles
The media vehicles that we used were network television, cable television, radio,
and the Internet. Highlighted below are specific things within the MRI data that
reflected our target market’s interests and where we would concentrate our focus.
Media Units
Rationale
The decisions of media rationale were based solely on data obtained from
MRI and our own personal assessment of how our media vehicles will effectively
reach our target audience. In terms of Television channels such as “The Cooking
Channel”, “Style”, and “QVC” all had the highest index numbers out of all Television
channels all having index numbers above 120 which means these channels are 20%
more likely to reach our target audience. Specific types of programming that is ideal
for our target include golf, entertainment specials, news specials and, especially
daytime talk! These television shows also matched the age range and demographic
measurements that would be appropriate. The market we have selected for radio
the best times are weekday nights from 8:00am to 10:00am with programming such
as talk radio. The index for this time schedule of radio is 4% more likely to reach our
selected market than other times on the radio schedule. Magazines of choice for the
market would be prints such as “The Chicago Tribune”, “Coastal Living”, and
especially in Sunday issues of newspapers like the “Chicago Tribune”. The
magazines appeared to be the most heavily used by the target market.
Appendixes
Flow Chart
Primary Research Instrument
The primary research that was conducted featured an observation strategy
of simply observing an overview of who was currently purchasing Birds Eye product
to compare it to a perception of who we thought was purchasing and when the
secondary research was conducted of heavily influenced MRI data, Datamonitor
statistics, and overall research that was sought out, we found that the original
perception was a little off, and the rest of the campaign was tailored to the strong
secondary research results.
Reference List
Facenda, Vanessa L. "The Frozen Food Frontier." Progressive Grocer 83.11 (2004): 42-45. Business Source Premier. Web. 26 Apr. 2012.
"Frozen Food Industry Profile: United States." Frozen Food Industry Profile: United States (2011): 1. Business Source Premier. Web. 26 Apr. 2012. United States Department of Agriculture. USDA: Food and Safety and Inspection Service. USDA, 2012. Web. 24 Apr. 2012. <http://www.fsis.usda.gov/About_FSIS/index.asp>. Pinnacle Foods LLC. Birds Eye. Pinnacle Foods, 2012. Web. 12 Apr. 2012. <http://www.birdseye.com/>.