fruzies report

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Daniel Duffey Kelsey Gallagher Lisa Hoeynck Catherine Russell Yo Tam Yoon Spring 2012 University of Notre Dame Professor Moore Advertising + Promotion

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Report of fruzies advertising and promotion campaign including extensive background research.

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Daniel DuffeyKelsey GallagherLisa HoeynckCatherine RussellYo Tam Yoon

Spring 2012 University of Notre DameProfessor MooreAdvertising + Promotion

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Welcome, members of the board. Please enjoy

reading our proposal for fruzies, a new dried

fruit provided by Kelloggs Company. We are

confident that this product will be successful

and increase our bottom line. The following

report gives our reasons for this claim.

Sincerely,

Daniel Duffey Kelsey Gallagher

Lisa Hoeynck Catherine Russell

Yo Tam Yoon

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Table of ContentsOverview of Brand and Positioning Strategy.................................................................... 5

Promotional Situation Analysis............................................................................................ 8

Product Category Threats and Opportunities................................................... 8

Consumer Behavior Considerations..................................................................... 10

Company Background............................................................................................... 11

Competitive Analysis................................................................................................ 14

Target Market Specification................................................................................................... 27

Demographic Characteristics................................................................................. 27

Key Psychographic and Behavioral Characteristics......................................... 28

Size of Target Market................................................................................................. 29

Other Marketing Mix Considerations................................................................................ 30

Marketing Objectives.............................................................................................................. 31

Marketing Communications Program................................................................................ 32

Budget............................................................................................................................ 32

Advertising Program.................................................................................................. 34

Message Strategy......................................................................................... 34

Creative Strategy and Brief.......................................................... 34

Examples of Ads............................................................................. 52

Ad Evaluation.................................................................................. 35

Media Strategy.............................................................................................. 36

Key Media Problems..................................................................... 36

Media Chosen................................................................................. 37

Analysis of Media Plan................................................................. 40

Advertising and Promotion Flowchart..................................... 41

Sales Promotion Program.......................................................................... 43

Objectives........................................................................................ 43

Trade Promotion............................................................................. 44

Consumer Promotion.................................................................... 44

Examples of Sales Promotion Materials.................................. 61

Shopper Marketing and Point-of-Purchase Plan................... 46

Sponsorships................................................................................................. 46

Reference List............................................................................................................................ 48

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Overview of Brand and Positioning Strategy

Brand Description & Positioning

Our BrandOur product will be an all natural dried fruit snack product called ‘fruzies.’ Unlike other dried fruit products on the market, our prod-uct will have no added sugar or preserva-tives. As such, it can be viewed as a more convenient alternative to fresh fruit for busy consumers who are constantly on-the-go or unable to find certain types of fruits that are fresh in their local grocery store year-round. Our dried fruit will be packaged in small snack-size packages with a variety of flavor options including tropical (e.g. pineapple), strawberry, mixed berry (e.g. blueberries, raspberries), and other fruit combinations, including peaches, apples, and pears.

We have chosen Kellogg as our par-ent company. It is a successful, reputable, American company that does not currently package and distribute dried fruit of any kind. In deciding on a company, we also wanted to pick one that was socially minded and had the potential to aid communities if we were to position our brand as one that gives back to communities in need with each purchase.

The Opportunity Demand for fruit fell considerably in 2009 due to the financial crisis. Because fruit is not seen as an important part of a diet, it is one of the first to get cut out by consumers. After the economy improved in 2010, the demand for fruit also increased. As the economy re-covers, the demand for fruit will also increase, naturally raising the cost of organic fruit. Price

of fruit is predicted to increase by 2.1% until 2016.1 There is a conflict of interest here since consumer demand for fruit will only act as a catalyst to increase price. Our product will be able to close this hiatus between in the expectation that consumers have by offering fruits that may be able to supplement fresh fruit by offering the nutritional value at lower prices due to the absence of high transporta-tion costs. This will especially be significant since the world price of dry bulk shipping is predicted to increase until 2017 by 2.2%.2 The increased interest in eating healthy coupled with the predicted increase in fruit prices and transportation costs, dried fruit will be able to tackle both obstacles and fill the hiatus.

Competitive Frame of ReferenceOur frame of reference is the dried fruit cat-egory. The challenge of positioning ourselves simply as a snack is that we must compete against other snacks such as chips. Consider-ing that the Scientific American once pub-lished an article stating that cocaine was no more addictive than potato chips, it would be difficult for a healthy snack to compete against an addictive snack.3 On the other hand, if we draw our frame of reference as a type of fruit, then we will be comparing dried apples to fresh apples, raisins to fresh grapes, and peaches to dried halves: dried fruit just cannot compete against the fresh fruit. This is especially so if we consider the fact that the hydration process of fruit eliminates certain vitamins. As such, we must draw our frame of reference as being a dried fruit and invest

1 Price of Fruit. Rep. IBISWorld, 2011. IBISWorld Business Environment Report. Web. 13 Feb. 2012. <http://clients.ibisworld.com.proxy.library.nd.edu/bed/default.aspx?bedid=179>.

2 World price of dry bulk shipping. Rep. IBISWorld, 2012. IBISWorld Business Environment Report. Web. 13 Feb. 2012. <http://clients.ibisworld.com.proxy.library.nd.edu/bed/default.aspx?bedid=990030>

3 Szalavitz, Maia. “Can Eating Junk Food Really Be an Addiction?” Time Health. Time, 03 Apr. 2010. Web. 05 May 2012. <http://www.time.com/time/health/article/0,8599,1977604,00.html>.

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into raising consumer awareness about the benefits of dried fruit as a healthy snack that complements fresh fruit yet is still healthier than a fruit snack. This way, we will be able to draw on the benefits of fresh fruit while stay-ing away from direct comparison to them. We are competing against the sugary and sweet snacks, instead of the salty snacks. Within the dried fruit category, Ocean Spray Crasins and Sun Maid Raisins are our larg-est competitors based on their size and large market share. As mentioned, we are not trying to beat the fresh fruit segment, but instead focus on the on-the-go style of dried fruit. Our competitors are very focused on the healthy consumers who want to find a more natural snack throughout the day, and fruz-ies will also try to fit into the same segment. We want to beat this segment of fruit snacks and crisps as well, including brands such as Welch’s Fruit Snacks and Brother’s All Natu-ral Fruit Crisps. Although these are different from our product in terms of sugar content and crispy style, we still want to focus on the similar consumer segment who wants to give their family a healthier option for a small snack.

Points of ParityWe are all natural, with no sugar or sulfur additives in our product. Like other brands in our industry, we will offer a wide array of fruit options. We share the perception and fact that our brand is a healthy source for getting the recommended daily dosage of fruit. Like fresh fruits, our company’s dried fruits are practically devoid of fat, trans fats, saturated fat and cholesterol. Also, our brand has very

low sodium content, like fruits.

Points of DifferentiationOur point of differentiation is that we are health conscious so our consumers don’t have to worry about what they eat. Thus, we will beat our competitors on packaging, pric-ing, and branding. One problem that many consumers have when eating food is serving size; very rarely can people stick to the rec-ommended serving size. For example, people would be shocked if they knew that a serv-ing size for tostitos tortilla chips is an ounce, which is around 6 chips.4 Our product has a serving of dried fruit per bag so our consum-ers don’t have to worry about serving size. In addition, our packaging helps our consumers keep track of how many servings of fruit they have eaten that day so that they may eat the recommended serving of fruit per day. In ad-dition to portion control, Kellogg’s exclusive NutraREV technology allows fruzies to retain more nutrients and vitamins during the dehy-dration process, making our product healthier and more flavorful than its competitors with-out any added sugar or preservatives. Thus, portion size and more nutrients will give fruz-ies an edge on competitors as the healthiest dried fruit product on the market. Our product will also have a price and cost advantage over our competitors since we have access to NutraREV technology which allows us to produce our dried fruit at a lower cost and greater efficiency than any other competitor in the entire industry. Furthermore, energy costs for our machine are almost a third of the cost of freeze dried fruits, allowing us to price lower than our

4 Venuto, Tom. “Nutrition Label Lies & Loopholes: Serving Size Sleight of Hand.” HuffPost Healthy Living. TheHuffingtonPost.com, 23 Feb. 2010. Web. 05 May 2012. <http://www.huffingtonpost.com/tom-venuto/nutrition-label-lies-loop_b_473065.html>.

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competitors, which is a significant advantage in such a price sensitive product category.5 It is important to note, however, that although we plan to use creative packaging and brand-ing to attract new customers to the dried fruit category and to fruzies, we will use light weight and cost efficient materials to keep packaging costs low and therefore, continue to attract a lower price than our competitors. In addition to our lower price, we hope to differentiate fruzies by marketing it as a fruit alternative. Because fruit is hard to consume on-the-go because it can be sticky and often expires, we hope to emphasize the convenience fruzies provides to its customers through snack size packaging. Also, because most dried fruit products are not marketed specifically toward moms and their kids, we hope to differentiate ourselves by capitalizing on this market segment.

Reasons to Believe in fruzies’ Points of DifferentiationHealth conscious company that shows this through our product-- we care about the healthy consumer. We do this through our portion control. We plan to be a socially responsible company both internally with our dehydration process and throughout the com-munity. We don’t just sell dried fruit, we sell a healthier lifestyle. In addition, fruzies Nutra-REV dehydration process is faster and re-tains more nutrients and vitamins than other technology. Thus, this exclusive technological advantage will provide us with justification for our claim to be healthier than our competi-tion and it will allow us to price our product slightly below competitors’ offerings, which

will gain us a large advantage in the price-sensitive dried fruit category. Our Company mission is to promote healthy living in the busy lives of the modern family. As such, we don’t want to eliminate fresh fruit in our customers diets. We simply want to ensure that our customers are get-ting their necessary daily servings of fruit in a convenient and healthy way.

Brand Name and RationaleThe fruzies brand name melds both the fruit and easy aspects into one. Our company wanted a name that would be friendly and appeal to both moms and kids. Our tagline, “taking the frustration out of fruit” implies that our product is not only as healthy as fruit but also more convenient. As such, our brand name, ‘fruzies,’ is a combination of the words ‘fruit’ and ‘easy,’ allowing us to rely on the positive associations that these words elicit. Consequently,, our brand name alludes to the convenience and health benefits provided by our dried fruit in a fun, unique, and simple manner. Moreover, we chose to make our brand name plural, similar to Pringles, so that each individual piece of dried fruit could be called a ‘fruzie’ by consumers. By doing so, we hope to strengthen our brand associations of quick and healthy to each piece of dried fruit we offer. Finally, our name is short and has the potential to work well with various messaging.

5 Fact Sheet: Dehydration Technology for Food and Food Cultures.” EnWave Corporation. 2012. 12 February 2012 <http://www.enwave.net/media/downloads/nutraREV-Fact-Sheet.pdf>.

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Promotional Situation Analysis

Product Category Threats and Opportunities

Cultural: Healthy Consumer Lifestyle According to the Centers for Disease Control and Prevention (CDC), “In 2010, no state had a prevalence of obesity less than 20%”.6 As such, obesity is a very serious problem as further supported by the First Lady Michelle Obama who has made it one of her signature issues to fight childhood obesity. The Ameri-can Council of Exercise (ACE) released the “Top Fitness Trends for 2012” of which one is that fitness facilities will hire nutritionists in addition to other healthcare professionals and thus shift its emphasis from physical training to whole-life training.7 As such, there will be much interest acquiring a healthy lifestyle as supposed to an optimal workout. The Well-Being Index released by Gallup-Healthways indicates that there are already modest im-provements in the well-being of individuals in

the United States. This trend will be beneficial to our company since we will not have to cre-ate our own momentum to persuade consum-ers to eat more healthily.

Cultural Misunderstanding of Dried Fruit

The dehydration process of dried fruit will remove all the liquid content while preserving most of the nutrients inherent in the fruit except vitamins A and C that are destroyed during the heating process. As the fruit becomes smaller in size, the caloric content gets condensed into a smaller portion size. For example, a cup of apricots contains 74 calories while a cup of dried apricots contains 212 calories.8 This would not be a problem if consumers were literally compar-ing apples to apples since one raw apricot in fact has the same amount of calories as two dried halves.9 However, due to its smaller size, consumers are more prone to overeat without

6 “Obesity and Overweight for Professionals: Data and Statistics: U.S. Obesity Trends | DNPAO | CDC.” Centers for Disease Control and Prevention. 21 July 2011. Web. 12 Feb. 2012. <http://www.cdc.gov/obesity/data/trends.HTML>.

7 “Roadmap for the Future: ACE’s 2012 Fitness Trends to Watch.” Become an ACE-certified Personal Trainer and Maintain Your Personal Training Certification with the American Council on Exercise. Also Offering, Group Fitness Instructor, Lifestyle and Weight Management Coach and Advanced Health and Fitness Specialist Fitness Certifications. Web. 12 Feb. 2012. <http://www.acefitness.org/certifiednewsarticle/2033/roadmap-for-the-future-ace-s-2012-fitness-trends/>.

8 Ray, Claiborne C. “Q and A - How Does Dried Fruit Compare With Fresh Fruit in Nutritional Value? - Question - NYTimes.com.” The New York Times - Breaking News, World News & Multimedia. 1 July 2008. Web. 12 Feb. 2012. <http://www.nytimes.com/2008/07/01/science/01qna.html>.

9 Kane, E. E. “Is Dried Fruit Really A Healthy Snack?” Is Dried Fruit Really A Healthy Snack? | Lifescript.com. Lifescript, 17 Sept. 102007. Web. 12 Feb. 2012. <http://www.lifescript.com/diet-fitness/articles/i/is_dried_fruit_really_a_healthy_snack.aspx>.

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knowing that a portion of dried fruit is only a fourth of a cup.10 As a result, dried fruit is reg-ularly listed by articles as food to resist during diets because they are high in calorie as compared to their size and thus less filling.11 For those consumers who are not familiar as to why dried fruit is bad for diets, dried fruit may simply be categorized as a food that is merely high in sugar without much nutritional value. This lack of awareness is something our company will have to deal with.

Political: New Report Equates Dried Fruits and Fresh Fruits

Thirteen researchers collaborated on a paper entitled “Traditional Dried Fruits: Valuable Tools to Meet Dietary Recommen-dations for Fruit Intake” to suggest that food policy makers consider dried fruits as being equivalent to fresh fruits. The paper outlines the fact that the median intake of fruit for all age groups in the United States are consider-ably lower than the minimum recommended intake as shown below.12 Furthermore, the paper outlines the significant benefits of eat-ing dried fruit such as its high potassium and fiber content. If policy makers were to con-sider dried fruits as being equivalent to fresh fruit, we could expand operations to distrib-ute dried fruit to confectionaries and schools

at lower costs.13

Economic: Forecasted Rising Cost of Fruit

The price of fruit in the United States does not experience a lot of price volatil-ity since it is not directly correlated to fuel prices. As a result, the fluctuations in fruit prices are a direct representation of the sup-ply and demand of fruit. After the financial crisis in 2008, unemployment rates rose and disposable income decreased drastically. Because fresh fruit is seen as a luxury good, demand for fruit fell. However, the price of fruit will slowly increase with decreasing unemployment rates and increase in dispos-able income.14 Since fruit prices increase with increase in demand, dried fruit, if positioned correctly, could be seen as a cheaper yet equally healthy substitute.

10 Averkamp, Stephanie. “How Many Servings of Fruit Do I Need in a Day? | FitnessforWeightLoss.com.” Achieve Permanent Weight Loss | FitnessforWeightloss.com. Web. 12 Feb. 2012. <http://www.fitnessforweightloss.com/how-many-servings-of-fruit-do-i-need-in-a-day/>.

11 Chinyere, Kalvin C. “Weight Loss Strategies - Don’t Eat Bad Carbohydrates.” SG & Singapore Map - Singapura, Singapur, Singapore Information. Web. 12 Feb. 2012. <http://www.streetdirectory.com/travel_guide/46500/lose_weight/weight_loss_strategies___dont_eat_bad_carbohydrates.html>.

12 Rodgers, Anne Brown. Report of the Dietary Guidelines Advisory Committee on the Dietary Guidelines for Americans, 2010. Rep. Washington, DC: USDA, 2010. Print.

13 Aksoy, Uygun, Arianna Carughi, James Anderson, Mary Jo Feeney, Dan Gallaher, Andriana Kaliora, Vaios Karathanos, Shin-ichi Kayano, Jim Painter, Ron Prior, Praveen Vayallil, Gary Williamson, and Ted Wilson. Traditional Dried Fruits: Valuable Tools to Meet Dietary Recommendations for Fruit Intake. International Nut & Dried Fruit. Web. 13 Feb. 2012. <http://www.nutfruit.org/UserFiles/Image/pdf/link1_110504.pdf>.

14 Price of Fruit. Rep. IBISWorld, 2011. IBISWorld Business Environment Report. Web. 13 Feb. 2012. <http://clients.ibisworld.com.proxy.library.nd.edu/bed/default.aspx?bedid=179>.

Median Intakes (Cup

Equivalent)

Min. Recommended Intake (Cup

Equivalent) Adult Men 0.9 2.0

Adult Women 0.8 1.5 Adolescent Boys

0.8 2.0

Adolescent Girls

0.6 1.5

Boys 9-13 0.8 1.5 Girls 9-13 0.8 1.5  

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Technological: Innovation in Dehydra-tion Technology

The EnWave Corporation released the nutraREV in 2011, which “uses a combination of vacuum pressure and microwave energy to deliver a high-speed, low-temperature food dehydration process.” The company has signed an R&D agreement with Kellogg to measure the benefits of the new technol-ogy. In addition, the company has signed a Technology Evaluation & License Option with Ocean Spray Cranberries to test market products produced using the company’s technology. As such, the nutraREV has the technology to make the dehydration process of food cheaper and more effective. The intro-duction of this technology into the field would help reduce production costs associated with dehydrating fruit.

Consumer Behavior Considerations

With the new rise of health conscious shoppers and the ageing of the baby boom-ers, there is a high degree of overt information seeking for healthier and healthier products. As such, our company would benefit from this trend especially since dried fruit has estab-lished itself as being a healthy substitute to sweet snacks.

The duration of the decision process is fairly limited but typically based in longer-developed ideals and principles about health-conscious eating. Once we introduce the product, the decision will be a “new purchase situation,” but we are hoping to be successful enough to become a “repeat” purchase item. This will be a large factor in determining our success because IRI data shows that only 33% of purchases are repeat purchases.15 The decision process could be affected by effective product placement, but we are hop-ing to affect the decision maker earlier on, by effectively communicating the importance of healthy snack products and the extent to which our product fulfills such needs.

The buyer’s personal involvement with the purchase is very high. They are either highly involved for their own personal health preferences or highly involved for the care they have for the health of their loved ones, whether it be spouses or children. The buyer’s preference is likely also influenced by the convenience that the product will offer. Thus, it is important that we offer our product in ideal packaging to facilitate simplicity in

15 Marketing Fact IRI Data

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packing and transporting.The risk or uncertainty of negative

purchase income is very low. If the buyer does not like or enjoy the product, the loss of investment is very low. Most purchasers interested in sampling our product will try our product on a one-time basis and will not invest in larger purchases. In some cases, we can nearly eliminate the risk by offering samples of our product to the consumer.

Company Background. Fruzies chose Kellogg to be our parent

company because it is a well-known consum-er product good corporation with a reputation for quality and social responsibility. In addi-tion to Kellogg’s reputable company name, it does not currently have packaged dried fruit of any kind in among its product offerings. Thus, fruzies will not be competing directly with any other major Kellogg’s brands. Lastly, Kellogg’s is noted by Fortune 500 Magazine as one of the top 200 American companies in 2011 due to its sound financial position and growing profitability.16 Although there has recently experienced some high-profile criti-cism of Kellogg for its sugary children’s cereal brands, Kellogg is making great strides to combat its negative reputation among moms. In particular, Kellogg has helped found the Children’s Food & Beverage Advertising Initia-tive (CFBAI) under the umbrella of the Better Business Bureau. The mission of this CFBAI is to enhance trust among consumers by

16 Fortune 500 Top American Corporations.” CNN Money. Cable News Network. 2012. 4 February 2012 <http://money.cnn.com/magazines/fortune/fortune500/2011/snapshots/242.html>.

17 “Children’s Food and Beverage Advertising Initiative.” Council of Better Business Bureau. 2012. 10 February 2012 <http://www.bbb.org/us/childrens-food-and-beverage-advertising-initiative/>.

18 Bruell, Alexandra. “Kellogg Selects Weber Shandwick for its Brand Portfolio.” Advertising Age. 25 October 2011 <http://ad-age.com/article/news/kellogg-selects-weber-shandwick-brand-portfolio/230635/>.

19 “Offers & Promotions.” 2011. Kellogg Co. 10 February 2012 <www.kellogg.com>.

promoting healthy dietary choices and active lifestyles among children under the age of 12 and improving the mix of healthy food and beverage options for children.17 Because of Kellogg’s proactive approach to improving its corporate image and its newfound commit-ment to nutritional benefits of its products, we feel that Kellogg would be a good fit for fruzies.

Marketing skillsKellogg has a company history of iconic

brands that have strong awareness and cus-tomer loyalty. We hope to utilize Kellogg’s marketing channels, including their advertis-ing agency Leo Burnett and public relations firm Weber Shandwick, to market fruzies.18 In addition to advertising, Kellogg utilizes a va-riety of creative promotions in multiple chan-nels, including the Internet, mail-in offers, in-box giveaways, sweepstakes, and coupons, to promote their products in retail channels, thus demonstrating their strong retail rela-tionships.19 As fruzies develops, we also hope to use their knowledge and expertise in these areas to promote ourselves.

Production, management, financial, and R&D skills

Kellogg is a publicly-owned, multina-tional corporation that produces consumer product goods in the cereal, snack foods, and frozen goods categories. According to Forbes Magazine, Kellogg’s world renown brands and commitment to corporate responsibility

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have led the company to be voted one of the top five corporate brands, along with J&J and Google, for its excellence in ethics, product quality, and brand engagement.20 As a result of Kellogg’s management efforts to improve brand building and sustainable growth, Kel-logg was also voted one of the top five best corporate reputations among US companies by Forbes Magazine. These accolades show how Kellogg’s management and marketing efforts have led to consumer and media rec-ognition for superior performance. Kellogg’s management structure is broken down by product division (i.e. cereal, retail snacks, and specialty frozen channels) then further bro-ken down by products within each division.21 The company’s overall standard of qual-ity products and its devotion to promoting healthy lifestyles fits well with fruzies’ brand positioning strategy.22

In addition to its awards, Kellogg has a very strong financial outlook. After the financial crisis in 2009, Kellogg tightened its efficiency and cost structure, eventually ex-ceeding its goal of cost savings of $1 billion by 2011.23 Kellogg’s current average growth rate over the last five years (i.e. from 2006-2011) is +8% in net sales.24 In particular, Kellogg’s snack food category has seen 5% annual domestic growth in 2011 and is expected

to continue to rise. Because fruzies will be among Kellogg’s snack food offerings, such as fruit snacks, this projection bodes well for us. In addition to net sales, Kellogg’s gross profit in 2011 was $5.4 billion with a margin of 41.3%, which is a slight improvement from 2010’s gross profit of $5.3 billion (as a per-cent of net sales). Finally, Earnings Per Share, although currently neutral, were +2-4% in the past year, indicating moderate steady growth, which is significant and stable for the highly competitive package good industry.25

Along with its strong financial resources, Kellogg has continued to demonstrate a strong commitment to Research and De-velopment. The Kellogg Institute for Food and Nutrition commissioned $187 million to research in 2010 and roughly $180 million in 2008 and 2009.26 In particular, Kellogg’s R&D efforts focus on improving the health benefits of their products and discovering new product offerings that will fill gaps in consumer needs. Because we feel that fruzies will be both nutritious and reach unmet consumer needs, Kellogg’s is an ideal parent company for us. Also, as mentioned earlier, Kellogg signed an R&D agreement wtih EnWave Technology in 2011, the manufacture of NutraREV Technol-ogy, a revolutionary new way to dry fruit com-pared to conventional dehydration methods.

20 “Recognition.” 2011. Kellogg Co. 10 February 2012 <www.kellogg.com>.

21 “Leadership Team.” 2011. Kellogg Co. 11 February 2012 <www.kellogg.com>.

22 “Our Vision and Mission.” 2011. Kellogg Co. 11 February 2012 <www.kellogg.com>

23 “Financial Highlights.” 2010 Kellogg Annual Report. Updated 2011. 11 February 2012. <http://annualreport2010.kelloggcom-pany.com/>.

24 “Fortune 500 Top American Corporations.” CNN Money. Cable News Network. 2012. 4 February 2012 <http://money.cnn.com/magazines/fortune/fortune500/2011/snapshots/242.html>.

25 “Fourth Quarter and Full Year 2011 Financial Results.” Kellogg Company. 2 February 2011. <http://files.shareholder.com/downloads/K/1699683034x0x539148/c82161ec-862a-431a-aa50-876d86016b8b/K_PRINT_Q4_Earnings_1_Febru-ary_2012.pdf>.

26 2010 Kellogg Annual Report. Page 3.

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NutraREV Technology has the capabilties to dry virtually any fruit in minutes to hours compared to days in a cost and energy ef-ficient way. Although Kellogg has purchased its exclusive agreement to test NutraREV for 12 months, it has the option to purchase this technology at the end of the trial period.27 The unique features of NutraREV Technology will greatly help fruzies create a comparative advantage in the marketplace, allowing us to price our product below the competition, save time, reduce batch losses, and retain the flavor, taste, nutrients, and color of the fruit throughout the drying process. Therefore, Kellogg’s exclusive NutraREV technology will add credibility to our positioning strategy as a healthier dried fruit option and, hopefully, allow us to effectively capture price sensitive dried fruit market.

Funds to support an effective promotional program

According to Kellogg’s 2010 Annual Report, its total advertising expenditure for all brands was $1.1 billion, demonstrat-ing a strong commitment to build its brands through advertising and promotion.28 In addi-tion, Kellogg is the consumer product indus-try leader in advertising expenditure which proves its corporate belief that brand equity is built through a strong marketing communica-tion mix firmly founded on well-established advertising and promotion programs.29

How Kellog’s skills compares our competitors skills

Production fitKellogg’s cereals, such as Fruit Harvest

and fruit versions of Special K, utilize freeze-drying technology, which maintains the health and nutrition qualities of dried fruit in their products. In addition, Kellogg’s offers a variety of fruit snack options that contain fruit juices and concentrates but contain high levels of high fructose corn syrup and other sugar additives to enhance their flavor and taste.30 Because fruzies is an all-natural, healthy dried fruit product with no sugar add-ed, we hope to capitalize on the technology and production capabilities already in place at Kellogg’s plants by catering them to fit fruz-ies’ unique production needs. Furthermore, the unique production capabilities presented by Kellogg’s exclusive R&D agreement with EnWave Corporation for Nutra Wave could allow us to produce out dried fruit faster, cheaper, with less product and energy waste, and more flavor retention. Thus, Kellogg’s production capabilities greatly suit fruzies’ needs compared to major competitors, such as Dole, H.J. Heinz Company, General Mills, that do not have license to such technology. Thus, NutraREV will give fruzies a compara-tive advantage within the marketplace. The only major competitor that could be a poten-tial threat in this arena is Ocean Spray Cran-berries, Inc., who signed a license agreement with NutraREV for the technology to dry cran-

27 “NutraREV: Dehydration Technology for Discrete Food Pieces.” EnWave Corporation. 2012. 13 February 2012 <http://www.enwave.net/nutrarev.php>.

28 “Fourth Quarter and Full Year 2011 Financial Results.”

29 “Our Company.” “Our Brands.” 2011. Kellogg Co. 10 February 2012 <www.kellogg.com>.

30 “Our Brands.” 2011. Kellogg Co. 10 February 2012 <www.kellogg.com>.

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berries. Because Ocean Spray focuses mainly on cranberries and other berries, however, and does not expand to many other dried fruit varieties, this threat may be minimal.31

Marketing fit In the past year, Kellogg has expressed

that its overall goals have been to improve its brand building efforts through advertising and promotion. Unlike its industry com-petitors, Kellogg has focused its efforts in advertising, spending over $1 billion dollars on advertising in the last year alone. This advertising budget totals approximately 9% compared to its closest category competitor’s ad spend of 7%, allowing Kellogg to become the industry leader in ad spend and giving it a reasonable edge in brand awareness for new product entrants.32 Also, because dried fruit as a category is not heavily branded and is mainly geared toward healthy individuals who already seek organic products, we feel that Kellogg’s strong reputation for building iconic brands would be beneficial to differentiate our dried fruit in the marketplace. We want our dried fruit to have a high level of consumer awareness to our primary target of moms and our secondary target, kids. Also, we hope to build off of Kellogg’s established reputation and positive associations, such as its focus on quality and nutrition, that are well-known to its consumer base.

Channel accessAnother priority of Kellogg in the past

several years has been to enhance its sus-tainable growth by investing in its supply chain. Kellogg works with many major retail distribution channels, but has seen a signifi-cant trend toward consolidation in the retail grocery business in the past few years. As this trends continues, Kellogg maintains a pull strategy by producing nutritious, quality productions, which consumers desires and heavily advertising and promoting them to end-consumers. Consequently, as consolida-tion increases, major retail channels, restau-rants, and distributors will continue to work with Kellogg to satisfy the demand of loyal Kellogg’s customers. Kellogg’s largest retail customer, Wal-Mart, composes 21% of its US sales while no other single retail outlet owns more than 10% of its retail sales. Thus, al-though Kellogg plans to utilize a pull strategy in the future based on market consolidation trends, it still will focus on satisfying large channel customers such as Wal- Mart.33 Because Kellogg has such a forward-looking distribution strategy and does business in almost every large grocery retailer in the US, there is no clear channel advantage or current threat posed by its direct competitors in this arena.

Competitive Analysis

Present and future structure of industry competition:

The dried fruit industry is made up of eight different types of fruit: dates, dried

31 “NutraREV: Dehydration Technology for Discrete Food Pieces.” EnWave Corporation. 2012. 13 February 2012 <http://www.enwave.net/nutrarev.php>.

32 “Fourth Quarter and Full Year 2011 Financial Results.” Slide 9.

33 “Fourth Quarter and Full Year 2011 Financial Results.” Slide 9.

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Primary Competitors:

Secondary Competitor:

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apricots, dried cranberries, dried figs, dried fruit chips, dried plums, raisins, and other dried fruit. According to IRI data for dried fruit, there are approximately 40 different brands in this industry. They range from huge producers to private labels.34

This matters to our company because there are only a few competitors that have large market shares in the industry. Many of the brands in the industry have smaller shares of the market. If we can tap into the market and differentiate our fruit product and price, we will stand out among our competitors. Not only this, but we hopefully be able to induce switching among those consumers who are looking for healthy alternatives to junk food snacks or fresh fruit.

Current market shares and selective demand trends in the industry:

According to Mintel’s report on dried fruits from January 2011, SunMaid Growers had 25.6% share of market segment at the end of 2010. Sunsweet Growers is second with 14.7% of market share. OceanSpray Cranberries, Inc. has 12.9% of the market but their percent change from 2009-2010 is up by 16.8%, the largest change amongst all competitors by far. Private labels account for 20.4% of the market share, trailing closely behind SunMaid. Please refer to Exhibit A in the Appendix for more a table on dried fruit sales from the Mintel Report.

With regards to industry trends, raisins are clearly struggling for relevance as an array of other dried fruit establish footholds in the

market. Recent press coverage has mentioned the iron content of raisins, and additional opportunities exist to focus on boron. Raisins are one of the top sources of the mineral bo-ron, which is required to convert estrogen and vitamin D into their most active forms. Mes-sages that celebrate these nutritional powers can help reposition the raisin as a superfruit, especially among women whose health con-cerns align with the raisin’s benefits.35

In addition, private labels are utiliz-ing a broad stretch of shelf space to rotate new flavors and mixes into the market; value, especially for the premium iteration of private labels, offers consumers license to experiment with new varieties and flavors. It’s variety that adds allure to well-priced product lines. Cranberries, bananas, and apples are setting the new product pace in dried fruit.36

Three major competitors: Ocean Spray, Welch’s Fruit Snacks, and Sun-Maid Raisins

Minor competitor: Brother’s All Natural Fruit Crisps

Ocean Spray Positioning:

Ocean Spray Craisins are made with real fruit and good as a snack or in a recipe. They’re naturally fat-free and cholesterol-free.37 Ocean Spray also has a line of BerryFusions Fruit, including the new pomegranate vari-ety. It is being promoted to food processors for a number of applications, such as bakery, cereals, dairy, snacks, and confectionery, ac-

34 Dried Fruit. IRI. Total U.S. - All Outlets. Mid-Year 2007 Consumer Insights Builder

35 Nuts and Dried Fruit, US - January 2011. Brand Share. Mintel

36 Nuts and Dried Fruit, US - January 2011. Brand Share. Mintel

37 Original Dried Cranberries. http://www.oceanspray.com/Products/Dried-Fruit/Original-Dried-Cranberries

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cording to the June 2010 issue of Prepared Foods. The pomegranate offering is added to the current line of BerryFusions Fruit classics: strawberry, raspberry, cherry, blueberry, and mango.38

It is important to note that Ocean Spray voluntarily recalled their Craisins in Novem-ber 2011, after metal fragments were found in some of the packages.39 Also, as of February 2012, California Raisin farmers will be launch-ing an anti-craisin protest as concerns grow of Ocean Spray capturing their market share. A spokesperson said that, “A ‘moms’ focus group will be used. A portion of that video indicated the moms were at first enamored of the Craisins, and then became concerned when they learned of the added sweeten-ing.”40 This is definitely something we should be aware of as our company moves through our marketing process.

Financial, production & resources: The company distributes its products

in North America, the Caribbean, Central and South America, Africa, the Asia/Pacific, Europe, and the Middle East. Ocean Spray Cranberries, Inc. was founded in 1930 and is headquartered in Lakeville-Middleboro, Mas-sachusetts. It has manufacturing facilities in New Jersey, Washington, Wisconsin, Nevada, Texas, and Florida. The company also has fruit receiving stations, processing, and bot-tling plants in the United States and Canada.

Ocean Spray has about 2,000 employees.41 Of all manufacturers/brands, Ocean

Spray Craisins turned in the top performance in 2010 when it introduced the brand to Facebook. It was the only dried fruit brand to post share growth of more than one percent-age point.42 Ocean Spray sells its products through food retailers, foodservice providers, and food makers worldwide.

Marketing resources and skills: Ocean Spray’s focus on cranberries in

their craisins fits in well with current new dried fruit product introductions led by the cranberry, long considered beneficial to pro-moting urinary tract health and now praised for high antioxidant (“superfruit”) properties. Ocean Spray is the leading growth brand in dried fruit. It is also the top innovator. The brand posted a 16.8% increase in sales 2009-10. For its recent introductions, the company is infusing its Craisin dried cranberry with other superfruits, pomegranate juice being added in the newest variety.43

Current marketing and promotional programs:

Ocean Spray Craisins teamed up with Sizzler for the Great American Salad show-down. More than 1,800 people entered the Great American Salad Showdown. The top three recipes were selected based on taste, originality, appearance, clarity of preparation instructions and sustainability on the Salad

38 Nuts and Dried Fruit, US - January 2011. Competitive Context. Mintel

39 Aleccia, JoNel. Ocean Spray Craisins recalled because of metal fragments. http://vitals.msnbc.msn.com/_news/2011/11/26/904043-ocean-spray-craisins-recalled-because-of-metal-fragments

40 Pollock, Dennis. California raisin industry in marketing war with Ocean Spray Craisins. http://westernfarmpress.com/grapes/california-raisin-industry-marketing-war-ocean-spray-craisins

41 Ocean Spray Cranberries, Inc. Business and Company Resource Center.

42 Nuts and Dried Fruit, US - January 2011. Brand Share. Mintel

43 Nuts and Dried Fruit, US - January 2011. Brand Share. Mintel

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Bar. A panel of judges, including Chef Nona Sivley, Season Eight winner of reality TV show “Hell’s Kitchen” with Chef Gordon Ramsey picked the winner.44 Ocean Spray is utilizing celebrity endorsers for certain promotions. It is also joint venturing for the promotions, in this case, with Sizzler, Inc (a US-based restau-rant chain). Ocean Spray Craisins is position-ing itself as a dried fruit that is versatile and can be paired with other food offerings.

Arnold Worldwide took over the Ocean Spray account in 2004 and introduced the “Straight from the Bog” campaign which features two growers standing in a bog and reintroducing the cranberry – with its power-ful nutrients and uniquely delicious taste – to the world. The simple, beautiful iconography of farmers in a sea of red berries instantly telegraphs “good for you” and “from a good place.”45

Traditional media: According to the Dried Fruit Report

from AdSpender, Ocean Spray is spending $154,100 for advertising. About $143,000 of the total is being allocated towards maga-zines advertisements. Another 2,000 is being spent with Newspapers.46 TV spot allocation was not found on AdSpender, however we do know that the “Straight from the Bog” cam-paign utilizes TV spots. Their overall spending on traditional media is very low, most likely due to their strong brand equity.44 Marine Mom Wins Sizzler, Ocean Spray Craisins Dried Cranberries Salad Recipe Contest. Business Wire. http://www.busi-

nesswire.com/news/home/20111202005143/en/Marine-Mom-Wins-Sizzler

45 Arnold Worldwide. Ocean Spray Case Study. 2012. http://www.arn.com/creative/case-studies/ocean-spray-2012

46 Dried Fruit. Media Mix. AdSpender. December 1, 2010.

47 PepsiCo and Ocean Spray Announce Strategic Alliance in Latin America. Benzinga.com, Jan 17, 2012. Business and Company Resource Center.

48 Partnerships. Share Our Strength. http://www.oceanspray.com/Events---Promos/Partnerships.aspx

Other marketing communications: Ocean Spray and Pepsi Co have enjoyed

a successful business relationship in the U.S. since 2006.47 Also with regards to its part-nerships, Ocean Spray is sharing the bounty of its harvest by partnering with Share our Strength. Through its Families Feeding Fami-lies campaign, Ocean Spray and its grower-owners invite families across the country to join the fight to end childhood hunger in America by taking Share Our Strength’s® No Kid Hungry™ Pledge to end childhood hunger by 2015. According to their website, Ocean Spray says, “We’re proud to spearhead this initiative and invite families across the country to join our growers in the fight to end childhood hunger in America. Consumers are encouraged to join the fight online by pledg-ing to make a difference in their communities at www.nokidhungry.org/oceanspray.”48

Arnold Worldwide and Ocean Spray built life-size cranberry bogs in New York City, Chicago, Hollywood and at Gillette Sta-dium in Massachusetts, complete with “Bog Squads” handing out samples, recipe books and coupons. Over the years, celebrities have even waded into the bog at New York City’s Rockefeller Center. The Today Show’s Al Roker has reported live from the bog. Martha Stewart got into the bog to share Thanksgiv-ing dinner with 45 kids at a 50-foot-long kids’ table, hosted by Ocean Spray in partnership

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with Share Our Strength®. And Celebrity Chef Ming Tsai and 30 lucky guests donned wad-ers while he served up Ocean Spray “mock-tails” from a pop-up bar in the bog.49

Online Efforts:Of the $154,000 advertising budget,

$9,000 is being used towards Internet display advertising in the United States.50 On their website, Ocean Spray encourages consumers to ‘Meet their Growers’ of over 600 families in their heritage section of their website.

Ocean Spray has seen a high level of consumer engagement with the work that Arnold Worldwide has created for Ocean Spray. They did a complete redesign of the brand website, which was based on a com-prehensive digital strategy. They also have a large Facebook presence. Since the introduc-tion of the page in June 2010, Ocean Spray has welcomed more than 550,000 fans to its Facebook family. Boasting 365 days of con-tent via recipes, photos, polls, sweepstakes and couponing the cooperative has grown its fan base organically by engaging juice lovers through direct, compelling and meaningful content.51

Research told them that recipes were the number one reason users visited oceanspray.com. But the user experience was lacking.52 So, building on the popularity of Ocean Spray recipes, the website was transformed to feel more modern and bright, better con-nected with the social space, and well-suited to grow with the brand. Vibrant imagery

and enhanced navigational features help to showcase Ocean Spray’s signature recipes and welcome users to an enthusiastic online community. The site also offers a meaningful look into Ocean Spray’s products, history, and values, highlighting the importance of their heritage as a grower-owned cooperative.53 The brand team is trying to address the sim-plicity and deliciousness of the brand through visuals and ease of website navigation. The website also includes an ‘Events and Promos’ tab with coupons, links to social media such as Facebook, and partnerships.

Integration of marketing communica-tions across traditional and non-tradi-tional media:

The marketing communications seem to be cohesively integrating the brand message throughout the different advertis-ing channels. The “Straight from the Bog” campaign had magazine ads, tv spots, utilized celebrity endorsers, and created interactivity within certain cities with the life-size bogs. The craisins and juice-infused dried fruits are not only sold online and in stores, but the company gives recipes that include their product line.

Welch’s Fruit Snacks positioning: Welch’s Fruit Snacks are positioned as

healthy fruit snacks. They come in 10 varieties (Mixed Fruit, Berries ‘N Cherries, Strawberry, Fruit Punch, Island Fruits, Concord Grape, White Grape Peach, White Grape Raspberry

49 Arnold Worldwide.

50 Dried Fruit. Media Mix. AdSpender. December 1, 2010.

51 Weber Shandwick. Shorty Awards. “Best Overall Brand Presence on Facebook.” Feb. 2012. http://industry.shortyawards.com/category/facebook_brand/zH/ocean-spray-cranberries-inc

52 Arnold Worldwide.

53 Oceanspray.com

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and Reduced Sugar) and a range of package options including 2.25 oz. and 5 oz. bags, and .9 oz. They have 100% DV Vitamin C, 25% DV Vitamin A & E, they are fat free - Gluten Free, and contain no preservatives.54 Welch’s also has 80-calorie packs, so that customers get a portion-controlled treat they can feel good about.

Financial, production and resources: Welch’s mature status on store shelves

and within the marketplace has not been helpful as the recession has dented earnings. Sales dropped from $685 million to $658.7 million from 2008 to 2010.55 Cost-conscious consumers are looking for less expensive al-ternatives. The company responded to pricing pressures by expanding its product portfolio to 50% and 10% juice value-offerings, which helped to buoy sales volumes. This does not directly apply to our company, focusing on monitoring Welch’s fruit snacks. However, Welch’s is also focusing on streamlining op-erations to cut expenses and offset the head-winds of higher commodity costs, which is of interest to our company. The effort included reducing corporate headcount by more than 15% in 2010, and initiating modest layoffs along with a consolidation of its manufactur-ing and distribution activities in 2011.56

54 Welch’s Fruit Snacks. http://www.welchsfruitsnacks.com/product_snacks.html

55 Welch’s 2010 Annual Report. National Grape Cooperative Association, Inc. & Welch Foods Inc., A Cooperative. http://www.welchs.com/about-welchs

56 Welch Foods Inc. Hoover’s Company. Feb. 1, 2012. http://proquest.com.proxy.library.nd.edu/hooverscompany

57 Welch’s International. 2009 Annual Report. http://www.welchsinternational.com/resources/images_l/annualreport/Welch’s2009AnnualReport.pdf

58 Welch’s International. Welch’s Resources. Sales and Marketing. http://www.welchsinternational.com/resources/sales.shtml

59 Welch’s International. Welch’s Resources. Research and Development. http://www.welchsinternational.com/resources/ne-wrnd.shtml

60 Neck, Jeff. Welch’s Local-Sourcing Story Is Core to Its Outreach. AdAge. January 24, 2011. http://adage.com/article/cmo-interviews/welch-s-local-sourcing-marketing-story-helps-target-women/148362/

According to their 2009 Annual Report, Welch’s is located in Concord, Mas-sachusetts, has 1,134 employees and 1,176 family farmers. They have vineyards in Penn-sylvania, New York, Michigan, Ohio, Wash-ington State and Ontario, Canada.57

Marketing resources and skills:Welch’s has firmly established partner-

ships in China, Canada, Japan, Korea, and the U.K. and exploring partnerships in Mexico and Brazil. They are focusing on these strong partner relationships to success in emerging markets. About 90% of Hong Kong retail out-lets carry Welch’s products.58 Currently, they have licensing partners in Canada (Cadbury Schweppes) and Japan (Calpis), Korea (Nong Shim ) and a marketing ventures in the United Kingdom (Gerber Foods Ltd.) and China (Great Lakes). They export directly to Hong Kong, Korea, the Philippines, Singapore, the Caribbean, and Latin America.59

Welch’s utilizes local sourcing for their marketing efforts. People want to know where their food comes from. They’re really inter-ested in the idea of sourcing and food being grown, not manufactured, not being artificial and fake. Welch’s wants to tap into this and show how their company uses real farmers using a traditional media-mix plan.60

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Current marketing and promotional programs:

In accordance with local-sourcing, Welch’s fruit snacks’ advertising centers around their phrase, “We put the fruit in fruit snacks.” Launchpad media ran a successful video jingle contest on Facebook for Welch’s Fruit Snacks. Fans submitted a “jinglicious” video for the chance to win an iPad and $1,000.61

Traditional Media: According to Fruit Snack report from Ad-Spender, Welch’s is spending $111,900 with their fruit snacks. About $50,200 is going towards B-to-B advertising and $61,600 to-wards Internet advertising.62 Comparing these numbers to Welch’s drinks spending, spend-ing towards fruit snacks is significantly lower. In 2010, Welch’s spent a little over $5 million on fruit drink advertising, with all ad dollars allocated towards TV spots.63

Other marketing communications:Welch’s is utilizing many different

marketing techniques to make their products visible, including:

• Consumer promotion: strategic sam-pling and demo programs to encour-age consumers to try new products

• Incentive programs to motivate local sales and professionals

• Vending machines for instant cold refreshment with careful placement including remote locations

• Flighting schedules to assure consis-

tent awareness with local consumers• Event promotions focused on diverse

consumer groups; e.g. soccer tourna-ments, music concerts, pediatric and cardiology conventions and conferences, volleyball tournaments, scooter days, La Maze classes and more

• Sponsorships of local tournaments, such as the North East Grapepickers’ annual Tip-off Basketball Tourna-ment in North East, PA.64

Online Efforts: Welch’s is utilizing Facebook to market

exclusive offers to their fans. Their website shows news about their new flavor as well as a photo of a Bonnie & Clyde musical star promoting their fruit snacks. Their website is extremely colorful and easily to navigate, but appears a little dated. Welch’s appears to be using search and display advertising because of their appearance on search engines when typing in “fruit snacks.” Using these tech-niques, the brand team is trying to have the Welch’s name prevalent throughout the Inter-net as well as encouraging sales through its dominance under the search results section of the search engine (using Google.com as an example).

Integration of marketing communica-tions across traditional and non-tradi-tional media:

Our company believes that the market-ing communications for Welch’s fruit snacks

61 LaunchPad Media. http://www.launchpad.tv/news.html

62 Fruit Snacks. Media Mix. AdSpender. December 1, 2010.

63 “Advertising Spending.” 2010. Sugarydrinkfacts.org

64 “Welch’s: A new ingredient in the Grape Tip-off Tournament.” Company News. http://www.welchs.com/about-welchs/news/welchs-a-new-ingredient-in-the-grape-tip-off-tournament

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is not as heavily focused on the fruit snacks segment, but is highly concentrated on the juice drinks. Traditional media, especially TV spots concentrate on the ‘realness’ of the product, which is cohesive with the ‘We put the fruit in fruit snacks’ signature phrase. Welch’s has strong alliances and partnerships with regional partners in each country where products are sold,65 but does not appear to have big name sponsorships or endorsers.

Sun-Maid Raisins Positioning:

Sun-Maid Raisins are positioned as a healthy and tasty snack provided by family-run farms in California. They are seen as a very whole-some brand by using the historic Sun-Maid girl, who has represented the brand through-out the years as a healthy and strong female on the packaging of their products.66 Their raisin brand also comes in different varieties, including Golden Raisins, Jumbo Raisins, and Baking Raisins. They also come in different packaging sizes, such as 24 oz carton, 15 oz box, and small snack size. Sun-Maid repre-sents them as either a supplement to a recipe or as a snackk. One serving size can give you as much nutrition as a piece of fruit, and are considered a healthy “go everywhere” snack that is chewy and flavorful.67

Financial, production and other re-sources:

Sun-Maid is a cooperative that is oper-ated by family farmers who grow the prod-ucts within a hundred mile radius of the 65 Welch’s International. Welch’s Resources. Strategic Partnerships. http://www.welchsinternational.com/partners

66 Sun-Maid. About Sun-Maid. http://www.sunmaid.com/about-sun-maid.html

67 Sun-Maid. Products: Raisins. http://www.sunmaid.com/products-details/raisins.html

68 Sun-Maid. News. http://www.sunmaid.com/news.html

69 “Sun-Maid Girl Gets CGI Makeover.” Animation World Network News. http://www.awn.com/news/commercials/sun-maid-girl-gets-cgi-makeover

Great Central Valley of California. Their main facilities are located in Kingsburg, California, and they pride themselves as a company that has a historic growth yet can change with the technology of the times. They are constantly changing and adapting to differ-ent ways of production and harvesting, for example receiving a patent for the dried-on-the-vine method of raisin production in 1995. In terms of international business, Sun-Maid is in over sixty countries. As stated on the brand website, “More than a third of all our retail and industrial products are shipped to international markets.” The site also claims that Sun-Maid Raisins are the most preferred dried fruit ingredient of food manufacturers across the globe. In 2009, Sun-Maid reported an annual sales number of 300 million dollars for raisin sales alone.68

Marketing resources and skills:Sun-Maid is one of the leading brands

of dried fruits, based on the amount of time they have been in the market and the large awareness of the brand coupled with the positive and wholesome perception. These raisins have always been associated with the snacking industry. Sun-Maid has used this to leverage itself as a healthy option for the consumer. They are now using their products as a tool for baking, and are differentiating through yogurt coverings and types of grapes. These are allowing the brand to expand into different product markets and reach more consumers.69

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They have worked with number of com-panies in order to renew their campaign of the Sun Girl, including Synthespian Studios, who helped remake the Girl into the new and im-proved version after 90 years of similarity.70 They are also working through the Internet, TV and print in order to promote their mar-keting campaign behind the Sun-Girl.

Current marketing and promotional programs:

The campaign is still focused around the strong Sun-Girl, which was redesigned in 2006 as a computerized and dated version of the girl all consumer have seen on the red packaging. The company is now focusing on ways to stay on top of mind with the consum-er and focus on the health market, which is growing exponentially. The newest campaign, which launched in 2006, focused on the digitally animated Sun Girl, who promoted the raisins as “nothing but grapes and sunshine.”71 Their website and other media sources, such as their television ads, have been focused around the sweet and simple snack, with a home grown feel and a healthy benefit.

Traditional media:According to Ad$pender, Sun-Maid

spent 143.6 thousand dollars in advertise-ment within this past year. The main focus for the raisin brand seems to be in business-to-business advertising as well as Internet and

outdoor spending. Television was a focus over the past five years, but has recently come to a hold. Internet was given a total of 48.9 thou-sand of the budget, where 60.9 was allocated towards outdoor.72

Other marketing communications:Sun-Maid has recently partnered with

the movie Kung Fu Panda 2 in order to advertise and use QR codes to have consum-ers interact with their brand through mobile applications.73 This is their first step towards mobile promotions. This QR code is also linked with a sweepstakes, which will give the winner a trip to Zoo Atlanta.74

Online Efforts:Sun-Maid uses their website in order

to promote their products, share informa-tion about their company, and engage the consumer in different activities in order to gain awareness of their brands. The problem with the Sun-Maid Internet communication is that it is on multiple different sites, which are not connected to each other. The United States site (www.sunmaid.com) is separate from the international site (www.sun-maid.com) and this could create inconsistency in the brand and confuse consumers. Sun-Maid does in fact sell their products through their website, as well as sharing recipes using their brands. A Mintel report on Dried Fruits and Nuts states, “The Sun-Maid site’s Healthy Liv-

70 Gale Directory of Company Histories. Sun-Maid Growers of California. http://www.answers.com/topic/sun-maid-growers-of-california

71 “Grapes + Sunshine= Fountain of Youth, as Sun-Maid girl turns 90 and Launches New Television Ads.” Sun-Maid. News. http://www.sunmaid.com/sun-maid-press-release-march-13-2006.html

72 Ad$pender report. “Dried Fruits Final.”

73 “Sun-Maid partners with DreamWorks’ Kung Fu panda for QR code campaign.” Mobile Marketer. http://www.mobilemar-keter.com/cms/news/database-crm/9979.html

74 “Sun-Maid leverages QR codes for multichannel marketing.” RICG. http://www.ricg.com/marketing_articles/digital_market-ing/sun_maid_leverages_qr_codes_for_multichannel_marketing/

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ing pages promote only the general benefits of dried fruit, and indeed fruit and vegetable consumption overall. Specificity will deliver the uniqueness of image that raisins, and the segment-leading Sun-Maid brand, need to compete more effectively.”75 This shows the areas of the Internet use where the company could be behind trends and lose consumers.

Integration of marketing communica-tions across traditional and non-tradi-tional media:

The communication of the wholesome brand and the use of the well-known Sun Girl is spread across the marketing mix of Sun Maid. They have utilized their campaign through PR, television, and the Internet over the past few years. The use of Kung Fu Panda 2 coupled with their product has shown a focus on marketing towards children, which is a complement to their overall campaign. Our Company believes that Sun-Maid is a great example of how to have an integrated cam-paign targeted towards mothers and children.

Brother’s All Natural Fruit Crisps Positioning:

Brother’s All Natural Fruit Crisps are positioned as all-natural fruit snack that uses fruit from across the world to freeze dry and produce without any preservatives, sugars, or enhancers. They differentiate themselves by using the process of freeze drying their fruit, instead of either baking, dehydrating, or or sweetened drying.76 They are normally sold in individual packaging, and seen as a snack and healthy alternative to the usual chip or

sugar snack. They are placed in either vending machines, in grocery stores, or can be bought online. Brother’s promotes themselves as a convenient and healthy snack that is targeted towards all ages of snackers. Fruit Crisps con-tain no fat and sodium, and have a very low percentage of calories. They are also made in facilities that do not have any sort of wheat, soy, peanuts, etc. that will prevent consum-ers with food allergies to eat the crisps. They use the tagline, “The fruit, the whole fruit, and nothing but the fruit!” There are many flavors of the crisps, including Fuji Apple, Apple-Cin-namon, Banana, Strawberry-Banana, Asian Pear, White and/or Yellow Peach,Pineapple, Strawberry, Organic Strawberry, Mixed Berry (strawberry, raspberry, blueberry, and blackberry), and our latest addition Mandarin Orange.77

Financial, production and other resources:

Brother’s All Natural uses state of the art freeze drying equipment in order to get the best quality for their crisps. They place a lot of focus on the quality and safety of their production, making sure there is no ethical issues as well as issues regarding enhancers or ingredients that would cause am allergic reaction. Brother’s All Natural is very proudly ISO9001 certified, HACCP certified, CIQ in-spected and OHSMS8001 certified. They are located in Rochester, New York, but also have offices in North Carolina, China, and Equador. Brothers International is the parent company for this brand, which delivers fruit and juices to manufacturers throughout the world.78

75 Nuts and Dried Fruit, US - January 2011. Brand Share. Mintel

76 Brothers-All-Natural Fruit Crisps. http://www.brothersallnatural.com/brothers-all-natural-fruit-crisps/

77 Brother’s All Natural. Frequently Asked Questionss. http://www.brothersallnatural.com/faqs/

78 Brother’s All Natural. About. http://www.brothersallnatural.com/about/

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The parent company, Brothers Inter-national Food Corporation, produces many different products, mainly in the wine indus-try. They are also focused on fruit juices and fresh fruit products. Brothers International is very proud of their sub brand, which reported a 36% increase in their sales over a one year time period as of December 2011, breaking records for Cyber-Monday reportings.79

Marketing resources and skills:Brother’s All Natural is focusing on the

health benefits of their products and using this as the basis of their marketing campaign. Their packaging is bright and colorful, which could be because of their focus on mothers and children for their products. The individual packaging is similar to most chip and vending machine/lunch food snacks, which puts them into the category of healthy snack foods.

Current marketing and promotional programs:

All their funding for marketing seems to be going towards their “Eat Healthy America” campaign which is a PR based campaign that is focused on the healthy choices and portion sizes of American consumers. This campaign started in the summer of 2011, and is continu-ing through their marketing mix to this day. They are mainly focusing on their Internet marketing and promotions, but there seems to be no focus on traditional use of media (out of home, print, or TV).80

Traditional media:This information is not available under

the Ad$pender database, but it appears

that they spend little towards any traditional media.

Other marketing communications:Brother’s All Natural has utilized many

different types of marketing communica-tions in order to promote their brand over the past year. In November 2011, Fruit Crisps partnered with Veggie Tales to release the new movie, “Little Drummer Boy” in order to promote healthier snack options.81 This was launched in conjunction with the “Eat Healthier America” Campaign, to promote healthier options for snacks to all ages, espe-cially children in this situation. They are also using social media and Internet campaigns in order to increase their awareness.

Online Efforts:Brother’s All Natural has done a great

job with their marketing campaign on the Internet. On their internet site, www.brother-sallnatural.com, it is heavily focused on their ecommerce and easy and accessible ways to purchase their products. They also have different promotions and coupons online that are for the customers who are willing to buy their products easily online. They have a spe-cial membership program, which also gives more promotions and different benefits for their loyal customers. This creates more of an incentive for a loyal base and attracts word of mouth from these consumers. In December 2011, Brother’s issued a press release which states, “According to IBM Smarter Com-merce, a Web performance analytics firm for 500 of the largest retail websites, online sales during this year’s Cyber-Monday were up

79 “Brother’s All Natural Breaks Cyber-Monday Sales Record, as Online Sales Grew 36% Year-over-Year.” PRweb. http://www.prweb.com/releases/HealthySnacks/CyberMondaySale/prweb9005616.html

80 “Press Release Published June 14th, 2011.” Brother’s All Natural. News. http://www.brothersallnatural.com/news/

81 “Press Release Published November 16th, 2011.” Brother’s All Natural, News. http://www.brothersallnatural.com/news/

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18% over Cyber Monday 2010...Transactions were up by 33.94% indicating that the aver-age order value increased, as well. Additional-ly, Website visitor traffic was up 112% during that same time period, a sign that there are a growing number of online consumers looking for Healthy Snacks.”82

Brother’s All Natural also focuses on their Facebook page, and has used this as a recent way to attract more consumers to their website by having a contest for facebook users to design their Internet site. In 2010, a Facebook Focus Group was put together in order to create a more intimate relationship with their consumer base.83

Integration of marketing communica-tions across traditional and non-tradi-tional media:

Brother’s All Natural does not have a heavy focus on traditional media, because they are an Internet -based company. Our Company believes that Brother’s All Natural is successful in their Internet campaign, but does not seem to communicate through their traditional media and therefore does not have a sufficient campaign through all mediums.

Opportunity for other competitors:Our Company believes that there is an

opportunity for our dried fruit brand in this industry. Based on information in the Dried Fruit and Nuts Report from January 2011, dried fruit sales growth will increase at least 5% each year within the next five years.84 The health segment is constantly growing and the trends of a healthy lifestyle for a consumer are on the rise. While Ocean Spray

and Sun-Maid are leading companies in this industry, Our Company can find a new niche and differentiate ourselves through packag-ing, portion size, and price. Most of our com-petitors are focused on a similar campaign of a healthy lifestyle for their consumer, but we will also be able to give them a more afford-able option and a healthy portion size.

Anticipation of retaliatory moves:Our Company plans to focus on the por-

tion size and health benefits of our product. Although most of our competitors are focus-ing on their health benefits, we will plan to focus more specifically on the right portion size, and make an overall health effort for our consumers, who focus on their healthy lifestyle. Similar to Brother’s All Natural “Eat Healthy America” campaign, we will try to focus on the benefits of our products and the benefits of our production, but we will make more of an effort to have an integrated mix across all forms of media. Our competitors can try to focus on our portion size and try to use our plan of making the right choices.

We will use our parent company, Kel-logg, to help Our Brand in terms of chan-nel distribution and product placement in different geographic areas. Also, given Our Company’s resources with the production of our dried fruit, we will be able to decrease the price on our product and appeal to lower-cost consumers. This could cause a trend in our competitors in decreasing their price as well. Given their production costs, however, Our Company will be able to use this as a differen-tiating factor for a good amount of time.

82 “Press Release Published December 1st, 2011.” Brother’s All Natural. News. http://www.brothersallnatural.com/news/

83 “Brother’s All Natural Utilizes Facebook Fans in the Design of their New Website, Enhancing their Commitment for America to Eat Healthier.” PRweb. http://www.prweb.com/releases/2010/11/prweb4749054.html

84 Nuts and Dried Fruit, US - January 2011. Segment Performance. Mintel

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Target Market Specification

Demographic CharacteristicsOur target market is health conscious

mothers, loosely defined as women aged 25-4585 by Parenting magazine and consistent with MRI+ data.85 While we intend to target women in our marketing strategy, this is primarily because they will make the purchas-ing decisions with regard to food for their family. Men are also very likely to consumer our product and may influence the purchaser. Recent data shows that men are just as likely to consume dried fruit as women, but that the consumption styles vary greatly. “Male re-spondents are more inclined to eat dried fruit as an occasional or regular snack, and less as additions to most other foods. However, men exceed women in their consumption of dried fruit added to either cereal or yogurt. Female respondents are much more inclined to add dried fruit to salad.”87

Though the primary decision makers are health conscious mothers, they are often influenced by spouses, friends, and chil-dren when buying food products. Ways to influence the decision maker are via health-conscious husbands, health-conscious friends and workout buddies, and children who are attracted to the brand via advertising and positive brand experiences.

MRI+ data shows that our target market at minimum attended college or went on to

an even higher level of education.88 While much of our target market does not work full-time jobs, they are busy being full-time mothers or work a part-time job in addition to volunteering heavily in the community. Further MRI+ data tells us our target market is white, has lived in the same home for five or more years, watches the Food Network, and has at least on child in the 6 to 11 year old range.

Ethnicity also plays a factor in segment-ing our market. Research indicates that, “Asian and Pacific Islander respondents are enthusiastic snackers, consuming every type of snack in the survey at high rates. They are particularly strong in their consumption of nuts, dried fruit, and trail mix. Hispanic con-sumers eat dried fruit as a snack and when entertaining.”89 This will offer the opportunity for a secondary focus on Hispanic moms, while still defining our larger target market as moms in general. This secondary focus, however, will also allow us to concentrate on specific marketing methods in geographic re-gions where there are greater concentrations of Hispanic Americans.

Income will also be relevant to defining our target market. We avoid targeting lower-income consumers because “the lowest-income consumers are least able to afford comparatively expensive whole-food snacks.

85 Onderko, Patty. “Survey: What is the best age to have a baby?” Parenting. http://www.parenting.com/article/best-age-to-have-a-baby

86 United States. MRI+ Data-Dried Fruit-Last 6 Months Total. Fall 2010 Product: Household Product-Food Products. MRI+. Web. 20 Feb. 2012. <http://www.mriplus.com>.

87 Mintel, “Gender, Age, and Snacking Habits,” Mintel, “Consumption Often Connected to Helath, Sometimes to Demograph-ics,” http://academic.mintel.com.proxy.library.nd.edu/sinatra/oxygen_academic/search_results/show&/display/id=543035

88 United States. MRI+ Data-Dried Fruit-Last 6 Months Total. Fall 2010 Product: Household Product-Food Products. MRI+. Web. 20 Feb. 2012. <http://www.mriplus.com>.

89 Mintel, “Consumption Often Connected to Helath, Sometimes to Demographics,” http://academic.mintel.com.proxy.library.nd.edu/sinatra/oxygen_academic/search_results/show&/display/id=543035id=56

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This demographic consumes nuts, dried fruit, and trail mix at lower rates than less costly processed snack foods. In fact, they are less likely than more affluent respondents to report consuming most snack foods, prob-ably dedicating their food budget to regular meals instead.” Thus we will target mothers of middle to high-income families. Think car-pool moms and minivans. MRI+ data shows that our target market’s household income ranges between $75,000 and $150,000.90

Geographic location will help with the secondary focus on Hispanic consumers, but it will also help define our product category in various regions that have specific affinities for various types of fruits and flavors in general.

There are multiple audiences that need to be considered in the marketing of our new brand. Our primary target is middle to upper class mothers. However, while this is our tar-get market, we also intend to target children through advertisement and product packag-ing in order to influence the primary purchas-er. Though we do not intend to target men as much, we must also recognize them as po-tential influences or the primary purchasers decision process. Finally, we must consider the audience of our secondary focus, Hispanic mothers, which, once established, will provide a phenomenal opportunity for growth as the Hispanic demographic continues to grow in the United States.91

Key Psychographic and Behav-ioral Characteristics

There are many functional and psycho-logical considerations that drive consumer choice in this product area. Functionally, the product needs to be as effective as regular fruit in fulfilling one of the recommended five fruit servings per day. Though eight out of ten consumers perceive dried fruit as healthy, some consumers are confused by the level of healthiness of dried fruit, particularly with the fat content that is misperceived as un-healthy.92 Additionally, our product intends to capitalize on the opportunity to be more func-tional than standard fruit in packaging, trans-porting, and preserving. Psychologically, our product can drive consumer choice by being a healthy alternative to standard, processed snacks or as a supplement to consumers who find it difficult to achieve the recommended five servings of fruit a day.93

Being health-conscious, our target mar-ket is likely to place a priority on an overall, healthy lifestyle. Not only will they want our product because they place a premium on healthy food, they are likely to exercise frequently and encourage their children and spouses to live healthy as well.

Another characteristic that will af-fect consumer-purchasing behavior is price sensitivity. The consumer price sensitivity is fairly high in this market area. Marketing Fact IRI data shows that 57% of dried fruit sales

90 United States. MRI+ Data-Dried Fruit-Last 6 Months Total.

91 United States Government. http://www.census.gov/population/www/pop-profile/natproj.html

92 Mintel, “Shifting the Focus of Healthy Snacking.”

93 Mintel, “Consumption Often Connected to Helath, Sometimes to Demographics.”

94 Marketing Fact IRI data

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were made when there was some sort of deal, promotion, or coupon.94 This suggests higher price sensitivity because sales are drastically increased when the price is reduced. Also, lower-income consumers are considerably less likely to purchase whole food snacks that are comparatively expensive to cheap, processed snack foods. Furthermore, they are less likely than more affluent consum-ers to purchase any snack foods, “probably dedicating their food budget to regular meals instead.”

Finally, benefits sought will be a defining characteristic of our target market. Our core customer will appreciate our product for the health benefits it offers and for the conve-nience it provides compared to fresh fruit. More than eight in ten consumers consider dried fruit to be healthy and offering a con-venient packaging that offers portion-control and avoids mess will be beneficial to consum-ers.

Size of Target MarketAnalyzing MRI+ data on the current

dried fruit market and carefully studying the key demographic information such as gender, age, income, marital status, children’s ages, and race, we were able to estimate the size of our target market. Women represent 68.5% of the purchases of dried fruit in the last six months with 97,630,000 purchases of dried fruit. While all of these purchases clearly indicate an interest in dried fruit, they were not all made by people we would consider to be our core target. Further analysis of demographic information we associate with

our target market shows that our core target is much smaller. By analyzing the number of purchases made by people that are currently married, we learned that 72,701,000 pur-chasers were married. This number included men who purchased our product however, so a more accurate number for determining our target market would be 68.5% of mar-ried purchasers, which yielded 49,800,185 purchasers. Further analysis of MRI+ de-mographic information showed the relative consistency of this estimate. More than 50,000,000 purchasers fell in the appropri-ate range for age, household income, number of children, and were of white ethnicity. Thus, by analyzing MRI+ data and making decisions based on demographic information that we found to be most consistent with our target market, we estimated our most specific, core target to be roughly fifty million people.95

95 United States. MRI+ Data-Dried Fruit-Last 6 Months Total.

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Other Marketing Mix Considerations

Channels of Distribution During our first year in the market-

place, we chose to distribute fruzies through major grocery retailers in second-tier cities throughout the US. Such cities include Co-lumbus, Ohio, Pittsburgh, Pennsylvania, and San Diego, California, and other medium-size cities in the US and coincide with the cities in which we will run our advertising and promo-tional efforts. As we gain brand awareness and a strong customer base in these second-tier cities, we plan to expand our distribution and advertising efforts to larger cities in the future. Within the second-tier cities, fruz-ies will be available at large grocery retail-ers, such as Kroger, Giant Eagle, Wal-Mart, Target, etc. Because our parent company, Kellogg, has strong retail relationships with these retailers, we feel that they will be the best outlet for fruzies. By choosing retailers that already have strong ties to Kellogg, we will be able to better negotiate slotting fees, trade promotions, and shopper-marketing efforts for fruzies. In addition, these large retailers will allow us to efficiently reach our target market of moms, ages 25-45, because of their numerous locations within each city.

Pricing Strategy Because Kellogg’s exclusive NutraREV

technology dries fruit faster using less energy, fruzies is able to price itself below its main competitors: Ocean Spray, Welch’s, and other dried fruit brands. Using Wal-Mart’s pricing as a benchmark, we see that typical dried fruit and fruit snacks range from $5-8 dollars.96

Thus, in order to utilize the cost advantage provided by our dehydration technology, we will price fruzies at around $4.00 for a box of 8 portion-sized packages. This price will help us to capture more consumers in the price-sensitive dried fruit category, but still exact a considerable profit as well. In turn, fruzies’ pricing strategy will enhance our brand im-age of convenience and value. Although we consider our pricing to be a key differential advantage, we do not want to utilize price promotions in our communications strat-egy so as not to cheapen our brand image of superior nutrition and diminish our brand equity in the long term. Thus, we will use our website, packaging, and in-store promotions to highlight our pricing strategy, rather than our media advertising. By doing so, we will focus on our value proposition of convenience and nutrition in our communications program and allow our everyday low price to speak for itself at the point of purchase.

96 “Dried Fruit.” Wal-Mart Stores, Inc. 2012. 15 February 2012 <www.walmart.com>.

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Marketing Objectives

With our marketing strategy we hope to attain a specific sales volume and market share as well as establish our brand identity and gain awareness in our first year. Our specific goals are based on a careful analysis of the current dried fruit market, competitors, and brand ideologies.

Analysis of our competitors revealed that Ocean Spray, the smallest of our three main competitors, owned 11.3% of the mar-ket.97 We decided that in our first year, to cap-ture half of our smallest competitor’s market share would be an ambitious and acceptable goal. We thus set out sights on achieving 6% of the market share in our first year.

A 6% market share in a $363 million market98 would yield sales of $21.78 million in our first year. This revenue will be crucial to our success since we intend to market more than any of our competitors so as to gain at-tention and build awareness. High spending on various IMC tools will allow us to achieve our third goal of establishing our brand iden-tity and promoting awareness of our product.

97 Nuts and Dried Fruit, US - January 2011. Brand Share. Mintel.com

98 Ibid.

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Marketing Communications Program

BudgetIn order to establish our budget we

used a top-down approach and analyzed our competitor’s ad spending and sales. We cross-referenced Ad$pender and Mintel data to compare our main competitors’ advertis-ing-to-sales ratio. Sun Maid, Sunsweet, and Ocean Spray spent .5%, 2.7%, and 0.2% of their sales on advertising, respectively.99 We also considered each of our competitors’ mar-ket shares. The lowest market share of our three main competitors belonged to Ocean Spray at 11.3%.100 Based on the market shares of our competitors, we decided that earning 6% of market share in our first year was an acceptable goal. Consulting Ocean Spray’s ad spending to sales ratio, left us with a next-to-nothing advertising budget, so we decided to base our budget on Sunsweet, who used 2.7% of its sales budget of advertising spending.101 Assuming our 6% market share of a $363 million market, we projected our sales in year one to be $21.78 million and our advertising budget to be $588,000. We concluded that this budget was far too low, but still worked as a basis for establishing our budget. As a new product, we require a much more sub-stantial investment in advertising to better establish ourselves in the market.

While our competitors are well estab-lished in the market and can afford to rest on their laurels, we need to enter the market and establish our brand, voice, and place. As a new company, even doubling the 2.7% of our

competitors only gave us a budget of roughly $1.2 million. With our competitors leverag-ing their brand equity and spending so little on advertising, we decided that we could not ultimately base our budget on their ad spending. Furthermore, we considered that our competitors’ lack of advertising creates an opportunity for us to enter the market and dominate the message. We will be the only company communicating heavily because we cannot rely on non-existent brand equity, which will allow us a clean share of the voice. We eventually focused on our projected sales of $21.78 million and decided that while we did not want our total advertising and promo-tion budget to exceed this projection, we did want it to be large enough to truly establish ourselves in our first year. We concluded that a total budget of $19.5 million, while high, would be effective enough to help us achieve our goals.

Having established the total IMC budget at $19.5 million, we allocated the funds pro-portionately to advertising, consumer promo-tion, trade promotion, and a fourth “other” category for sponsorships and cause-related marketing. We assigned 37% of the budget, or $7.232 million for advertising, meaning that the bulk of our budget would go to adver-tisements. This is because we believe adver-tising to be the most crucial to our success. We need to establish to our customer what our product is and how it fits into our target market’s lifestyle before they even enter the store. The second most expensive category

99 Nuts and Dried Fruit, US - January 2011. Brand Share. Mintel.com

100 Ibid.

101 Nuts and Dried Fruit, US - January 2011. Brand Share. Mintel.com

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was 31%, or $6.045 million on consumer pro-motion. This category received the second most money because so many consumers make purchasing decisions in the store. We assigned 27% of the budget, or $5.265 mil-lion, for trade promotion to facilitate getting our product noticed in the store. The remain-ing 5%, roughly $1 million, was allocated for “other categories” of IMC communications to further advance our brand and product.

The launch year will be the most ex-pensive for our product. Without owning any market share, we must have an aggres-sive media plan and budget in order to gain people’s attention and establish market rel-evance. After the initial year budget of $19.5 million, the budget will decrease significantly as we look to grow market share, rather than enter the market.

Category $ Amount (In Millions) Percentage

Advertising $7.232 37%

Consumer Promotion $6.045 31%

Trade Promotion $5.265 27%

Other IMC Tools $1.000 5%

TOTAL $19.5 100%

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Advertising Program Message Strategy: R.O.I.

We want the prospect to try fruzies (de-sired action) as a convenient way to supple-ment fresh fruit to get their recommended 2-4 servings of fruit per day instead of pur-chasing sugary fruit snacks (replaced action). Through our advertising, we hope to raise awareness of our new dried fruit brand and to instill the belief in our prospective consumers that fruzies has comparable health benefits of fresh fruit.

Consumer Profile: Stephanie is the busy mom of three young kids - Robbie, Caitlyn, and Claire. During the week, Stephanie works part time as a CPA for a small lo-cal accountancy firm. All of her free time, however, is spent taking care of her family. Stephanie spends most mornings making her kids lunches, cleaning, and getting ready for work. A few times a week, Stephanie finds time to take a quick jog around the neighbor-hood before getting the kids up for school. After school, Stephanie juggles a variety of activities, including cooking, PTA meetings, helping her kids with homework, driving Robbie to soccer practice in her hybrid SUV, and leading Claire’s Girl Scout Troop. Be-cause Stephanie’s husband, Mike, works long hours in the city, most household tasks fall on her. As such, multi-tasking, schedules, lists, and organization help Stephanie handle her hectic daily schedule. Despite all of her many stresses, Stephanie is very hands-on with her kids and is idealistic about their health, edu-cation, and well-being. She health conscious but also shops on a budget, buying a mix of

regular and organic products. When I try fruzies (action) I will be able

to easily reach my 2-4 servings of fruit per day and gain all of the nutrients, vitamins, and health benefits of fruit (experience) because fruzies is conveniently packaged and propor-tioned in small, individual, to-go packs and uses NutraREV dehydration technology to maintain fruit’s nutrients in the drying process and (support).

Brand Personality: Healthy + Convenient

Message Strategy: Creative Brief Positioning: For the busy, health con-scious family, mom and kids, fruzies is a dried fruit brand which offers comparable health benefits to fresh fruit with the convenience of on-the-go packaging and without any of the added sugar in fruit snacks.

Target Audience: Our primary target market is comprised of health-conscious moms. Currently, our target audience is aware of the importance of fruit to a healthy diet, but they are skeptical of the ability to use dried fruit as a substitution for fresh fruit. The target audience is identified as 25-45 years old, middle to upper class, healthy, and highly-involved in their children’s lives. The Secondary target market is children who currently eat sugary fruit snacks, but whose snacking habits are largely determined by the purchasing decisions of their parents.

Task: Our task is to educate consumers. We want them to understand that dried fruit offers the same health benefits as fresh fruit and that our product offers the same conve-nient packaging as processed, sugary, fruit snacks.

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Promise: The promise of fruzies is health

and convenience. We offer a healthy, natural

alternative to fruit snacks while providing a

convenient packaging that fresh fruit does not

offer.

Support: The innovative dehydration pro-

cess used to create fruzies products does not

include any sugar additives and thus allows

fruzies to be as healthy as fresh fruit. Our

packaging will speak for itself by offering the

same level of convenience as fruit snacks. Brand Personality: The fruzies brand personality will embody healthiness and con-venience.

Examples of Ads: In appendix

Ad EvaluationOur company intends to measure the

effectiveness of our advertising. Our goals in assessing our fruzies campaign are to avoid costly mistakes, identify problem areas, eval-uate traditional and non-traditional strategies, increase the efficiency of advertising, and determine if our objectives (within 6 months of launch, reach 50% of moms ages 25-45 and achieve 30% awareness among moms & 20% awareness among children ages 9-12) have been achieved. We realize that measur-ing effectiveness is costly and time consum-ing, but we think that fruzies will benefit with this evaluation in the long-term.

We plan to measure a variety of different advertising components. During pretesting, we will measure the strength of our mes-sage and whether it is resonating with the consumers. We will use laboratory methods to do comprehension and reaction tests in focus groups. We want participants to freely

discuss the meanings they get from our ads, consider the relative advantages of alterna-tives, and suggest how we can improve the ads. Our company will also use portfolio tests conducted in a laboratory setting in order to see what information participants recall from ads after they are exposed to a portfolio of both control and test ads.

We also want to measure the individual contributions of various media as well as their synergistic effect. To do this, we will pretest in a field environment using dummy advertis-ing vehicles for measuring our print ads and pretest broadcast ads using theater tests.

Our company also wants to devote energy to posttests so that we can even bet-ter measure if our IMC is contributing to our marketing goals. We want to achieve aware-ness among moms and kids. To test this, we will use recognition and recall tests. If con-sumers can recognize our product and recall it, this will be one step in the right direction. We also want to make sure that recall is turn-ing into a “I would want to buy this product” feeling. It is not enough for our consumers to just recognize and recall the product. We will also test consumer interest in fruzies by posting a survey to our website that will co-incide with getting our consumer promotion premium.

Finally, we will evaluate our non-tradi-tional vehicles, such as social media, by tun-ing in to what the consumers are posting on our Facebook account. We can also measure how many ‘likes’ we are getting for our fan page. All in all, we want to create an open dialogue around our product and listen to our consumers wants and needs.

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Media Strategy

Key Media ProblemsBecause fruzies will be a new entrant

to the dried fruit category, it is vital that we quickly raise brand awareness of our product to our primary consumer target, moms, and our secondary target kids. Thus, since we are a new brand, fruzies has introductory needs of heavier advertising spending during its ini-tial launch period, in order to raise consumer awareness and encourage consumers to try our product. Consequently, the initial push created by advertising will help fruzies gain market share from its competitors.

One major media constraint that fruzies will encounter is the Federal Trade Commis-sion’s restrictions on advertising to children. The Children’s Advertising Review Unit (CARU) provides strict guidelines for food advertisers on how to advertise to children. CARU provides guidelines for package good products on deception, product presentation and claims, material disclosures and disclaim-ers, the blurring of advertising with editorial or program content, promotional contests and sweepstakes targeting children, sales pressures, and unsafe and inappropriate ad-vertising to children.102 As a brand that hopes to promote nutrition and positive values to consumers, it is essential that all fruzies’ ad-vertising that targets children strictly adheres to these guidelines in order to maintain our wholesome brand image. One way fruzies can adhere to CARU and CFBAI objectives is by placing an ad break between children’s programming and our commercials. By doing

so, we will not confuse children into thinking that our commerical is not part of their televi-sion show or other editorial content.

Because fruzies are a simple, on-the-go snack, they do not require a visual demon-stration of product use through television, although we do feel that television will not only enhance the humor in our creative ex-ecutions, but also help us achieve our large, national reach to moms more efficiently than other media vehicles. Due to the complexity of our product message, however, print media would be a great supplement to television because it will allow fruzies’ to fully explain its multiple brand messages of nutrition and convenience to be clearly. Because fruzies is a food item and a large part of our brand image comes from packaging design, visual media vehicles, such as television, print, out of home billboards, and online, will be more beneficial than radio in conveying the humor, youthfulness, and convenience of fruzies to consumers. In addition, because our creative utilizes humor to capture the attention of busy moms, television ads will most likely be the most memorable and require less fre-quency to raise brand awareness.

Because fruzies is a new lower priced packaged good, we feel that our advertis-ing will not be needed to notify consumers of sales promotions. Rather, we hope that fruzies’ advertising raises consumer aware-ness and then shopper marketing and in-store sales promotions and coupons, as well as retailer displays, will then drive consumers to try our product. Because dried fruit is a very price-sensitive product category, we

102 “NARC White Paper: Guidance for Food Advertising Self Regulation.” National Advertising Review Council. Council of Better Business Bureau. 2008. <http://www.narcpartners.org/reports/whitepaper.aspx>.

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feel that online announcements of premiums and samples will not only drive consumers to buy fruzies in the store, but also enhance the value of our product in consumers minds. We feel that too much focus on price promotions will cheapen our brand equity in the long term. As such, we willl focus on building our brand image through advertising, rather than using advertising to notify customers of price promotions.

Finally, because we hope to reach a national audience, cable television, print, and online will allow the greatest national reach compared to radio, out of home, or other local media. Moreover, because the market leader, Sun Maid, and runner up, Sun Sweet, have significant advertising spending in the dried fruit category, it is essential to gain national awareness for fruzies and spend 1.5 times more than such comparative competitors on advertising.

Media Objectives:1. Effectively reach 50% of our primary

target audience of moms, ages 25-45 with an optimal frequency at least 2 exposures to fruzies’ message by 6 months from fruzies launch date.

2. Achieve 30% awareness among our primary target audience of moms and 20% awareness of our secondary target of children ages 9-12 by 6 months from product launch.

3. Use a mix of traditional (i.e. television, print,and out of home) and nontraditional (i.e. online and mobile) media vehicles to commu-nicate our multidimensional brand message to our primary target of moms during the mornings before work and school and before

dinner, when busy working moms are most receptive to our message.

Media Chosen

TVTelevision allows interaction with the

consumer through sight and sound, using more senses and gives the advertisers more creative flexibility. It can also give a mood or emotion to the brand that could not necessar-ily be portrayed through a print or radio ad. For Fruzies, our tone of wholesomeness and helpfulness is given through our two differ-ent TV spots, one with children at the lunch table and one with a mother in the car on a busy day. Although TV is one of the more expensive mediums, the reach for TV is large, therefore it is the most cost effective way to reach this number of consumers. Our target market is a broad, national audience, and we hope to benefit from this cost effective way to reach most of our market.

Given the MRI+ data, it is apparent that using the TV medium would work well with our target market. Our company has decided to focus on a few specific channels, and spend our budget running two different na-tional spots. This is a new product, therefore we will have 30 second spots as opposed to 15 second spots to create more awareness through this medium. This will be very expen-sive and take up a large section of our budget. We would like to have placement within early news shows, while homemakers are making lunches for their children, therefore the prod-uct can be top of mind during this critical time for family food items. Networks such as NBC

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and ABC that have prominent early morning news shows will be used to host Fruzie TV spots. Also, within the last six months, around 42 million homemakers have watched The Food Network, making it a great channel to broadcast our TV spots throughout the year and a great channel to place our commercials in the future, when we have a larger budget. We will also try to buy media time on HGTV (Home and Garden Television), and TLC (The Learning Channel), considering the high volume of viewers that are a part of our target market. These spots will be placed in an af-ternoon or evening slot, based on our target’s largest viewing time.

TV spots targeted more towards chil-dren will also be considered. Fruzies hopes to focus on Saturday morning cartoon shows, such as Cartoon Network, as well as weekday offerings for after school hours. This will allow our commercials to reach a younger audience, and create awareness towards the child sub market of Fruzies.

PRINTMagazine advertising will also be a

significant part of our media budget. Maga-zines are considered the most specialized of all advertising media, and will be beneficial to our brand. Selectivity towards a specific target is very important because it increases the chances of reaching a specific target market, instead of others who are not neces-sarily interested in the brand, becoming more effective to the overall marketing plan. Print ads can also create a space to give consumers more information about the brand, as op-

posed to other mediums that only last a short amount of time. The life span of a magazine ad is much longer than most mediums be-cause it is a physical substance that is usually read over a few days and looked at multiple times, compared to the quick messages of TV and radio and the daily dispose of a newspa-per. Different from websites, this is a physical substance, granting the ‘pass along’ effect to other people.

Research states that a majority of our target market reads general editorial maga-zines, with 63,231,000 homemakers sub-scribed to this genre. Fruzies hopes to focus on specific magazines, such as Better Homes and Gardens and Good Housekeeping, which are targeted specifically towards mothers in our target market. Here, they will be able to learn more information about the brand and create awareness towards it. These two magazines are among the top which are read from our target market, therefore we believe this will be very successful.103 The information given here will be more comprehensive than other mediums, so we will try to run these within the first few months of release in order to have the information reach the consumers as soon as possible. A relationship with these magazines can also be beneficial towards our digital marketing, in regards to their websites, mobile applications, and emagazines.

OUT-OF-HOME: Billboard with 25 shows

The increased number of vehicles on the road throughout the years has made the use of billboards in the advertising industry more

103 MRI+ Data

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desirable. Considering our focus on Mothers who are

constantly on-the-go, this is a perfect way for Fruzies to increase awareness and spread our brand message while they are still in the car. The frequency of billboards is very high, with people viewing these multiple times based on placement and daily routes. If placed in a local area, then it could become a very familiar brand for our target. Billboards can share the brand name and show a specific brand image, and the reach is very high for those who constantly view the board. Fruzies has two different billboard designs that cor-relate with the TV commercials that will be aired throughout the year, to bring awareness to multiple mediums and to bring one another to top-of-mind when viewing the opposite medium.

ONLINEOur campaign will also have a website

that will be the flagship of our brand, con-sidering the high traffic of the internet and today’s technology usage. This is a great tool to provide continuous advertising, especially when our product is not in flight. Websites are generally successful when they create brand awareness, stimulate trial, create buzz, and help to gain consideration for our brand. The fruzies website will focus more on inter-acting with the customer and gaining a more personal relationship through games and applications, while increasing brand aware-ness and giving more information for our new brand. There will be two sections, one for Moms and children. The section dedicated to

Moms will have further details of the nutri-tional benefits, explain the process of our dried fruit production, and how to get your daily portions of fruit. It will also have a ‘Mom Schedulizer,’ helping our target organize her busy lifestyle. The children section will have more interaction with the brand characters, and have plenty of games to keep the children entertained while also promoting the brand. Kids will have the ability to make their own virtual fruzies world, where they can become friends with the brand characters and com-pete to reach the healthiest award.

Most of our touch points will lead our consumers to the website, giving them more ways to interact with fruzies and increase our brand image. A QR code on the fruzies packaging, along with the characters mouth-ing, “look at our website!” near our nutritional facts, will traffic buyers to interact with the website. Furthermore, commercials, print ads, billboards, and all social media will include our web address to attract people to the site. When a mobile application is in place, this will be linked to the website, and coincide with both the Schedulizer and virtual world.

Another benefit given from the web-site would be to hold contests and other consumer promotions. Contests can be held immediately after flighting periods end, which would stimulate interest and keep consum-ers coming back to the site. This could create buzz and add more brand presence to the internet world. Small contests such as high scores for games or ‘Most Creative Mom’ can bring interaction and recognition to the target. This can also relate to free sampling,

40

given to contest winners through the site.

Other:We have also chosen to have a pres-

ence in mobile. There is a potential for an app game for kids in the future. We also want to start establishing a social presence on Face-book and Twitter. We will havecontests on our Facebook page where winners can obtain free samples of our product.

Analysis of Media Plan:The target demographic for our media

plan will be working mothers between the ages of 25 to 34. In order to reach these women as effectively as possible, we will launch our traditional media plan in 25 of second tier cities from the list of top 50 cities most suitable working mothers released by Forbes in 2011.104 These cities were picked as the best for working mothers based on a plethora of criteria. For example, these cities all have excellent benefits for employees who have given birth or have adopted a child, have very low crime rates, low cost of living and high per pupil expenditure, and an increase in the number of female entrepreneurs. When determining which cities to use, we tried to focus on covering all geographic areas of the United States. The cities are listed in alpha-betical order:

104 http://www.forbes.com/sites/meghancasserly/2011/10/11/the-best-cities-for-working-mothers-2011/

Atlanta GA 

Baltimore MD 

Boston MA 

Buffalo NY 

Chicago IL 

Cincinnati OH 

Dallas TX 

Denver CO 

Hartford CT 

Indianapolis IN 

Kansas City KS 

Milwaukee WI 

Minneapolis MN 

Nashville TN 

Oklahoma City OK 

Phoenix AZ 

Pittsburgh, PA 

Portland OR 

Raleigh NC 

Richmond VA 

Salt Lake City, UT 

San Diego CA 

Seattle WA 

St. Louis MO 

Tampa FL 

 

41

42

Medium 

Jan 

Feb 

Mar Apr 

May Jun 

Jul 

Aug 

Sep 

Oct 

Nov Dec 

Total ('000) 

   

    

    

    

    

    

    

 

Media Plan 

    

    

    

    

    

    

Cost 

7,232 

Net

 TV‐E

 Morn

ing 

(Today S

how

)   

    

    

    

    

    

    

 

Magazi

nes

 ‐ W

om

ens 

(Good H

ouse

kee

ing, B

ette

Hom

es &

 Gard

ens) 

    

    

    

    

    

    

   

Outd

oor 

(2nd T

ier Tre

ndse

ttin

g C

itie

s)   

    

    

    

    

    

    

 

    

    

    

    

    

    

    

  

Consumer Promotion 

    

    

    

    

    

    

Cost 

6,045 

Sam

ple

s   

    

    

    

    

    

    

 

In‐S

tore

 Adver

tising 

    

    

    

    

    

    

   

Online Pro

motions 

    

    

    

    

    

    

   

   

    

    

    

    

    

    

 

Trade Promotion 

    

    

    

    

    

    

Cost 

5,265 

Slo

ttin

g F

ees 

    

`   

    

    

    

    

   

   

    

    

    

    

    

    

 

43

As shown in the flowchart, we hope to achieve 150 GRPs through Net TV-E Morn-ing, 120 GRPs through Women’s Magazines, and 3,780 GRPs through billboards. Our traditional campaign will cost $7.2 million per annum. We will employ a flighting plan due to three reasons: the first reason is due to budgetary constraints, the second reason is to concentrate our strength into targeting working mothers and children during back to school week, and the third is to prevent competition against fresh fruit when they are at a peak during the summer. As mentioned above, we realize that it is difficult for dried fruit to compete against fresh fruit and there-fore we will not launch our media plan during the summer.

We plan to start our advertising in August, when moms are starting to shop for back to school supplies and children are getting ready to attend school. Our heavy advertising will be during this month. We will continue to advertise until the end of October, right before the holiday season begins. We chose to do this because of the numerous school and extracurricular activities in the Fall. We will take away our traditional media from November-February because of the high focus on holiday shopping, which will create clutter and thus make our campaign less efficient. We will continue our media in the Spring from March-May, up until school lets out. Again, our heavy advertising will be in March. We will stop our plan in May because it will be too hard to compete against the many varieties of fresh fruit that are available during the summer season. During the off

seasons when we don’t have our media plan, we will attempt to keep consumer interest through online promotions.

Sales Promotion Program

Objectives:

Consumer Promotion Objectives:Our consumer promotions objectives

are to ultimately obtain trial and purchase of our brand. We want utilize samples, in-store advertising, and online premiums in order to have our consumers connect with our fruzies brand. We want to drive consumer switching from fruit snacks to our product. We believe that the consumer promotions will enhance our advertising efforts and be consistent with our overall IMC plan.

Trade Promotion Objectives: The objectives of our trade promo-

tions are to differentiate fruzies from other dried fruit products on the shelves, gain and maintain distribution in large grocery retail-ers, and to promote the superior health and nutritional benefits of fruzies. In order to best accomplish our IMC and trade promotion objectives, our trade promotions will coincide with our consumer promotions. By tieing trade and consumer promotions together during the months we are in flight, we will be able to create synergy among our IMC efforts and most effectively utilize our budget. As mentioned above, fruzies’ 27% of fruzies total IMC budget of $19.5 million will be al-located to trade promotion. In other words, of the $11.31 million dollar sales promotion budget (i.e. 58% of the total IMC budget),

44

approximately 47% will go to trade promo-tion. Because fruzies is a new brand, we felt that consumer promotions, such as in-store sampling, will be more beneficial to our sales than a heavy focus on trade promotions. As such, we maintained the standard allocation for trade promotion in the consumer pack-aged goods industry.

Trade Promotion AllocationIn order to gain retail distribution in

stores such as Kroger, Wal-Mart, and Target, we will devote 50% of our $5.265 million trade promotion budget to slotting fees. Each retailer charges slotting fees at their own discretion depending on the size and reach of the retailer, amount of shelf space needed, and new product failure risks, among other factors. Because slotting fees vary greatly and are not openly known within the market, it is essential for fruzies to allocate a substan-tial portion of its trade promotion budget to securing ideal shelf space. Furthermore, in order to reach fruzies primary target of moms and secondary target of kids, we have decided to place fruzies in both the dried fruit aisle and the fruit snack aisle, respectively. Fruzies’ bright, colorful packaging will attract the at-tention of mom’s in the dried fruit section of the grocery store and our point-of-purchase displays, featuring brand characters and col-orful signage, will catch the attention of chil-dren walking in the fruit snack aisle. Because we will be dividing our shelf space between two aisles, slotting fees are an vital part of our trade promotion strategy.

In addition to slotting fees, the other

50% of our trade promotion budget will be allocated to market development funds at key retailers, such as Wal-Mart, which have the largest consumer reach. By providing MDF to these retails, fruzies hopes to successfully ex-ecute a pull-strategy by passing through trade promotion dollars to its customers. Fruzies’ will allocate its marketing development funds proportionally, based on sales to retailers, and use these funds to enhance brand equity through customized-merchandising support programs and savings on inventory carrying costs. Furthermore, fruzies hopes to improve its relationships with retailers through the use of MDF.

Consumer Promotions Our consumer promotion focuses on

franchise building. We want to offer promo-tions that will enhance our brand equity more than just offering temporary price discounts, which would give us immediate sales but deflate our brand quality.

1. Samples:We will have our fruzies samples at our

sponsored events such as sports tourna-ments and back to school day. We wanted to do samples because our product has many health benefits and is all natural, so we think people might be skeptical of the taste. This will get them to like the brand and ultimately purchase it.

2. In-Store Advertising:Our in-store advertising ties in with our

samples because it revolves around an entire kiosk that will be placed in select grocery stores in our target cities. The samples will be

45

available at the counter. We will also have our brand mascots at various locations, handing out samples and getting the children excited about our brand. The identity is carried across from our print and TV ads, creating a uni-fied brand image. Since many moms bring their young children to the grocery store, we thought that in-store advertising would be a good way to reach both moms and children at once.

Also, since part of our creative strategy is to help our target audience understand why dried fruit offers the same health benefits as fresh fruit, we have decided to show our ad-vanced dehydration technique in store at the booth we have set up for samples. By doing this, we hope that the moms and kids will see the vibrant signage, engage with the product, learn the creation process, and ultimately buy the product.

3. Online Promotions with PremiumsWe want to drive moms and kids to our

website so that we can start to build up a loyal community that engages with our brand and product. On our home page, we will periodically offer premiums such as buy one case flavor, get extra samples of other flavors while supplies last. Because our moms are busy, we want to make the process as simple as possible. They will text a number in order to redeem their premiums. By doing this, we hope that it will regenerate interest in the product. We are using it as a substitution to our traditional advertising during the times we are not in flight.

4. Online Registration: We are also looking into having an In-

ternet registration on our website where we would send monthly updates of our sponsor-ships, new flavors, and small price premiums or discounts. This will be in the future once our brand is recognizable among our target consumers.

Examples of consumer promotions are located in the Appendix of this report.

Plan for implementation:Both the sampling and in-store adver-

tising will be launched when our advertising does, in August. We wanted them to have synergy with back to school shopping and events.

Our online premiums will be launched after our back to school events, especially during the times that we are not flighting (November-February). We want to make sure that our brand voice is still being heard by consumers. It is a way to supplement the huge advertising expense that would have been incurred if we continuously were in flight.

Dollar amounts allocated to each:We have allocated roughly $6,045,000

to consumer promotions, which is 31% of our overall advertising and promotion budget. So, the breakdown for each type of consumer promotion is roughly allocated to:

50% Samples: This will comprise the majority of our consumer promotions budget. If each fruzies bag approximately costs $4, and we have individual piece samples (taking into account that there are about 10-12 pieces in each individual product), then the cost per person for samples is about $0.40. We want

46

to include sampling in the top three grocery stores for our ~30 second tier cities. For 100 people sampling at each location, we will need to allocate about $36,000.

40% In-Store Advertising: We have allocated $2.418 million for our in-store advertising when we promote our samples. This will cover the costs of booth materials, MDF needed to have someone run the booth, and compensation for our brand mascots. We will also be using some of this budget for our point-of-purchase costs.

10% Online Promotions: We will be offering this premium for 4 months on our website (November-February). Since we are doing this for as long as supplies last, we have roughly allocated $600,000 for this offer. We might have money left over, depending upon how many consumers we get to visit our web-site during the particular time period.

Shopper Marketing and Point-of-Pur-chase Plan:

Our shopper marketing and point-of-purchase plan coincides with our consumer promotions that we are doing at our retail locations.

Objectives:Our two main objectives for this plan are

to promote our product on the shelves of the store near the fruit snacks and to draw atten-tion to the product and drive purchase.

Budget: The budget is factored in with our in-store advertising.

Materials we will use to promote fruzies at the point of purchase: We will need mate-rials to attach to the shelves next to our prod-

uct. These will be cardboard pieces that are attached to the shelves and easily removed.

Steps we will take to get the trade to use these materials: We will use our MDF funds to establish a relationship with the retailers in which we can place the point-of-purchase displays. We will also ensure the display is placed correctly by giving the retailer a small planogram and including a photo of an ex-ample display.

How the materials are designed to at-tract the consumer’s attention and interest: Since we are placing fruzies near the fruit snacks, in the dried fruits areas, we want the product to stick out so consumers know that these are not fruit snacks, but dried fruits that are even better than what is currently on the shelf. We will keep our signage in line with our other advertising materials and make sure it is colorful and inviting. Please refer to the Appendix for an example.

Sponsorships, Cause-Related Market-ing, Word-of Mouth Marketing:

Our company has allocated 1 million dollars towards miscellaneous marketing initiatives in our Integrated Marketing Com-munication plan. We have decided to use this towards event sponsorships in the future of our campaign. Sponsorships are a great way to get our brand message to our target audi-ence, especially for a new brand. By support-ing a specific event or program that is associ-ated with the target market, the consumer will be able to relate to our brand through this

47

non-forced recognition. The values and be-liefs that are behind these events will now be associated with fruzies, bringing in a deeper perception to the brand name.

Fruzies would like to sponsor a tour-nament with the American Youth Soccer Organization, a national youth soccer league that holds over 50,000 teams with around 650,000 young players.105 We feel this is a good fit for the brand because it targets both the active youth, and the mothers who are supporting their children. We plan to allocate 60% of our sponsorship-marketing budget towards these events, mostly towards the sampling and banner advertising placed at the tournaments. A fruzies character dressed in costume and playing with the children will support the sampling program. There will be a fruzies tent where the sampling will take place, with members of the sales representa-tives giving more information about the prod-uct (see creative). Additional banners, flyers, and miniature fruzies soccer balls will be placed throughout the tournament locations. This will gain the attention of the mothers and the children, which increases both reach and frequency.

The remaining 40% of our event sponsorship budget will be allocated to-wards ‘Back to School’ events at local middle schools. 50% of this event funding will go towards samples that will be passed out in the beginning of the day, in order to gain more awareness for mothers making lunches for their children, giving them a healthy option to but in the lunchbox. Back to school season

is the perfect time to reach out to our target, and will give them awareness of the brand for the rest of the school year. Characters and banners will also be on site for these events, and will help to reach the target segment. The placement needs to be in the front of school, where most caretakers are dropping their children off at school and see the brand activities, bringing it to the top-of-mind list of snacks to buy at the store that week.

105 American Youth Soccer Organization. About AYSO. http://www.ayso.org/AboutAYSO.aspx

48

Reference List

“1990s | Sun-Maid.” 1990s | Sun-Maid. Web. 06 Feb. 2012. <http://www.sunmaid.com/our-history/1990s.html>.

2010 Kellogg Annual Report. Page 3. <www.kellogg.com>.

“About AYSO.” American Youth Soccer Organization. Web. 11 Apr. 2012. <http://www.ayso.org/AboutAYSO.aspx>.

“About Sun-Maid | Sun-Maid.” About Sun-Maid | Sun-Maid. Web. 06 Feb. 2012. <http://www.sunmaid.com/about-sun-maid.html>.

“Brothers-All-Natural: About Brothers International Food Corporation and Brothers-All-Natural Brand.” Brothers-All-Natural Fruit Crisps Category. Web. 09 Feb. 2012. <http://www.brothersallnatural.com/about/>.

“Brothers-All-Natural® Breaks Cyber-Monday Sales Record, as Online Sales Grew over 36% Year-Over-Year.” PRweb. 1 Dec. 2011. Web. 06 May 2012. <http://www.prweb.com/releases/HealthySnacks/CyberMondaySale/prweb9005616.htm>.

“Brothers-All-Natural: Frequently Asked Questions (FAQ’s).” Brothers-All-Natural Fruit Crisps Category. Web. 09 Feb. 2012. <http://www.brothersallnatural.com/faqs/>.

“Brothers-All-Natural Fruit Crisps Category: Freeze-dried Fruit Crisps.” Brothers-All-Natural Fruit Crisps Category. Web. 09 Feb. 2012. <http://www.brothersallnatural.com/brothers-all-natural-fruit-crisps/>.

“Brothers-All-Natural Utilizes Facebook Fans in the Design of Their New Website, Enhanc-ing Their Commitment for America to Eat Healthier.” PRweb. 5 Nov. 2010. Web. 10 Feb. 2012. <http://www.prweb.com/releases/2010/11/prweb4749054.html>. Bruell, Alexandra. “Kellogg Selects Weber Shandwick for its Brand Portfolio.” Advertising Age. 25 October 2011 <http://adage.com/article/news/kellogg-selects-weber-shandwick-brand-portfolio/230635/>.

“Children’s Food and Beverage Advertising Initiative.” Council of Better Business Bureau. 2012. 10 February 2012 <http://www.bbb.org/us/childrens-food-and-beverage-advertising-initia-tive/>.

Desowitz, Bill. “Sun-Maid Girl Gets CGI Makeover.” AWN | Animation World Network. 14 Apr. 2006. Web. 06 Feb. 2012. <http://www.awn.com/news/sun-maid-girl-gets-cgi-makeover>.

Dried Fruit Final. Rep. no. 384433 Ad$pender Online. Ad$pender. Web. 31 Jan. 2012.

49

“Financial Highlights.” 2010 Kellogg Annual Report. Updated 2011. 11 February 2012. <http://annualreport2010.kelloggcompany.com/>.

“Fortune 500 Top American Corporations.” CNN Money. Cable News Network. 2012. 4 Feb-ruary 2012 <http://money.cnn.com/magazines/fortune/fortune500/2011/snapshots.html>.

“Fourth Quarter and Full Year 2011 Financial Results.” Slide 9. Kellogg Company. 2 Feburary 2011.<http://files.shareholder.com/downloads/K/1699683034x0x539148/c82161ec-862a-431a-aa50-876d86016b8b/K_PRINT_Q4_Earnings_1_February_2012.pdf>.

“Gale Directory of Company Histories: Sun-Maid Growers of California.” Answers.com. An-swers. Web. 06 Feb. 2012. <http://www.answers.com/topic/sun-maid-growers-of-california>.

“Leadership Team.” 2011. Kellogg Co. 11 February 2012 <www.kellogg.com>. Mintel, “Consumption Often Connected to Helath, Sometimes to Demographics,” http://aca-demic.mintel.com.proxy.library.nd.edu/sinatra/oxygen_academic/search_results/show&/dis-play/id=543035/display/id=561829/display/bookmark/item_id=561688&atom_id=7 Mintel, “Gender, Age, and Snacking Habits,” Mintel, “Consumption Often Connected to He-lath, Sometimes to Demographics,” http://academic.mintel.com.proxy.library.nd.edu/sinatra/oxygen_academic/search_results/show&/display/id=543035/display/id=561829/display/bookmark/item_id=561688&atom_id=7 Mintel, “Shifting the Focus of Healthy Snacking,” http://academic.mintel.com.proxy.library.nd.edu/sinatra/oxygen_academic/search_results/show&/display/id=543035/display/id=561829/display/bookmark/item_id=561688&atom_id=7

“NARC White Paper: Guidance for Food Advertising Self Regulation.” National Advertising Review Council. Council of Better Business Bureau. 2008. <http://www.narcpartners.org/re-ports/whitepaper.aspx>.

“NutraREV: Dehydration Technology for Discrete Food Pieces.” EnWave Corporation. 2012. 13 February 2012 <http://www.enwave.net/nutrarev.php>.

Nuts and Dried Fruit, US- January 2011. Rep. 2011. Mintel.com. Web.

Nuts and Dried Fruit, US - January 2011. Brand Share. Mintel.com. Web.“Offers and Promotions.” 2011. Kellogg Co. 11 February 2012 <www.kellogg.com>.

Onderko, Patty. “Survey: What is the best age to have a baby?” Parenting. http://www.parent-ing.com/article/best-age-to-have-a-baby

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“Our Brands.” 2011. Kellogg Co. 10 February 2012 <www.kellogg.com>.

“Our Company.” “Our Brands.” 2011. Kellogg Co. 10 February 2012 <www.kellogg.com>.

“Our Vision and Mission.” 2011. Kellogg Co. 11 February 2012 <www.kellogg.com>

“Press Release Published June 14th, 2011.” Brothers-All-Natural: News Regarding Brothers International Food Corporation and Brothers-All-Natural Brand. Web. 09 Feb. 2012. <http://www.brothersallnatural.com/news/>. “Press Release Published November 16th, 2011.” Brothers-All-Natural: News Regarding Broth-ers International Food Corporation and Brothers-All-Natural Brand. Web. 09 Feb. 2012. <http://www.brothersallnatural.com/news/>. “Press Release Published December 1st, 2011.” Brothers-All-Natural: News Regarding Brothers International Food Corporation and Brothers-All-Natural Brand. Web. 09 Feb. 2012. <http://www.brothersallnatural.com/news/>. “Recognition.” 2011. Kellogg Co. 11 February 2012 <www.kellogg.com>. “Raisins | Sun-Maid.” Raisins | Sun-Maid. Web. 06 Feb. 2012. <http://www.sunmaid.com/products-details/raisins.html>. “Sun-Maid Press Release March 13 2006 | Sun-Maid.” Sun-Maid Press Release March 13 2006 | Sun-Maid. Web. 06 Feb. 2012. <http://www.sunmaid.com/sun-maid-press-release-march-13-2006.html>. “Sun-Maid Leverages QR Codes for Multichannel Marketing.” RICG Marketing Company. 11 May 2011. Web. 08 Feb. 2012. <http://www.ricg.com/marketing_articles/digital_marketing/sun_maid_leverages_qr_codes_for_multichannel_marketing/>.

Tode, Chantal. “Sun-Maid Partners with DreamWorks’ Kung Fu Panda for QR Code Campaign.” Mobile Marketer. 19 May 2011. Web. 8 Feb. 2012. <http://www.mobilemarketer.com/cms/news/database-crm/9979.html>. United States. MRI+ Data-Dried Fruit-Last 6 Months Total. Fall 2010 Product: Household Product-Food Products. MRI+. Web. 20 Feb. 2012. <http://www.mriplus.com>.

United States Government. <http://www.census.gov/population/pop-profile/natproj.html>.

51

Appendix

Exhibit A:

Selected FDMx manufacturer and brand sales of dried fruit, 2009-10

Source: Nuts and Dried Fruit, US - January 2011. Brand Share. Mintel

52

examples of brand characters

pineapple parker strawberry sophia

53

package design

back:

front:

peel here peel here

one serving size of dried pineapple

with an advanced dehydration process, it has nutritional benefits equal to fruit!

peel here

one serving size of dried strawberries

peel here

one serving size of dried berries

peel here

with an advanced dehydration process, it has nutritional benefits equal to fruit!

with an advanced dehydration process, it has nutritional benefits equal to fruit!

one serving size of dried peaches

peel here

with an advanced dehydration process, it has nutritional benefits equal to fruit!

peel here peel here

Find more sweet stuff at fruzies.com!

Find more sweet stuff at fruzies.com!

54

package design

This vending, serve-yourself style packaging caters to moms as well as kids. Moms can grab a package and put it in a lunch box and kids can take one too. Each individual pack will contain a full serving of fruit. Since this does not require much space for packaging, we wanted the look to be simple, small, and skinny so that consum-ers can pour the fruit in their hand or pop them in their mouths.

Each box will have a different color for the differ-ent fruit. We will also have a ‘variety pack.’

drie

d pe

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drie

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drie

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55

billboard design

natu

ral

on-

the-

go

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d fru

itw

ww.

fruzie

s.com

natu

ral

on-

the-

go

drie

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ww.

fruzie

s.com

56

environment with billboard design 2

fruzie

s.com

drie

d fru

it

57

print

fruzies takes dried fruit to a whole new level. It uses an advanced dehydration process that does not add sugar. fruzies has all the nutritional benefits of fresh fruit, but it’s easier for you and your kids to eat while you’re out and about.

natural on-the-go dried fruitwww.fruzies.com

fruzies takes dried fruit to a whole new level. It uses an advanced dehydration process that does not add sugar. fruzies has all the nutritional benefits of fresh fruit, but it’s easier for you and your kids to eat while you’re out and about.

natural on-the-go dried fruitwww.fruzies.com

58

Commercial 1: Moms

4. Kid next to him peels open fruzie and hands him one

1. Grabbing lunch boxes from counters and hurrying out of house to bus

2. School bell rings for lunch

3. Kid opens lunch and sees a pine-apple and responds with weird look

5. Screen with package and tagline

dried pineapplenatural, contains no added sugars

Script:1. Children screaming throughout the house

Child 1: “Mom! I’m gonna be late for the bus!”2. Bell ringing while Child 1 sits down for lunch,

bustling of kids in the background3. While Child 1 gives look, more noise from kids

in the background4. (More background bustle) Child 2: “Here, try

on of these.”5. Voice-over: “Fruzies: taking the frustration out

of fruit. With its advanced NutraRev dehydra-tion process, it has nutritional benefits equal to fruit. It is an all natural dried fruit product that makes life easier and healthier. Same benefits as fruit, easier on your lifestyle.”

59

Commercial 2: Kids

4. Kid next to him peels open fruzie and hands him one

1. Grabbing lunch boxes from counters and hurrying out of house to bus

2. School bell rings for lunch

3. Kid opens lunch and sees a pine-apple and responds with weird look

5. Kids play with the pineapple and turn it into a character. Ends with, “have fun with fruit” with fruzies

dried pineapplenatural, contains no added sugars

Script:1. Children screaming throughout the house

Child 1: “Mom! I’m gonna be late for the bus!”2. Bell ringing while Child 1 sits down for lunch,

bustling of kids in the background3. While Child 1 gives look, more noise from

kids in the background4. (More background bustle) Child 2: “Here, try

on of these.”5. (Kids playing with fruit) as Voiceover says:

“Have fun with fruit” with fruzies snack!

60

Commercial 3: Moms

1. Mom pulls up to stoplight, kids are screaming

5. Scene continues and no mess, calm. Each kid is happy eating fruzie

2. She rolls her eyes while quickly washing and plucking strawberries

3. As she is preparing fruit, she tries to quiet kids

dried pineapple

natural, contains no added sugars

dried pineapple

natural, contains no added sugars

4. Chucks the strawberries behind her back and scene pauses. Voice says, “Take the frustration out of fruit with fruzies”

Script:1. Child 1: “Mom! Jessie’s hurt-

ing me!!!” Child 2: “ Mom we’re gonna’ be late!!!”

Baby: Screaming2. Child 1: “Tell him to stop

MOM!” Child 2: “Well I’m hungry and I’m gonna be late and you’re being mean!”

Baby: Screaming3. Mom: “Alright everyone calm

down I’m getting you fruit.” (Children still rustling in the back of the car)

4. Sound freezes5. Voice-over: “Take the frustra-

tion out of fruit, with Fruzies.”6. Children silent while package

lands in their lap. Child 1: “Wow. Um...thanks Mom.” Child 2: “Yummmmmm”

7. Voice-over: “Fruzies: taking the frustration out of fruit. With its advanced NutraRev dehydration process, it has nutritional benefits equal to fruit. It is an all natural dried fruit product that makes life easier and healthier. Same benefits as fruit, easier on your lifestyle.”

6. Package with product info

dried strawberrieswith an advanced dehydration process, it has nutritional benefits equal to fruit!

61

In-Store Advertising + Sampling

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62

for

mom

sfo

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