imc 613 - brand audit

IMC 613: Plum Organics Brand Audit

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IMC 613 Plum Organics Brand Audit

Stephanie Heikkila Holman

11/30/2016


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TABLE OF CONTENTS

EXECUTIVE SUMMARY ..............................................................................................3

RECOMMENDATION FOR BRAND AUDIT .................................................................3

THE INDUSTRY............................................................................................................4

BRAND INVENTORY...................................................................................................5

Product Line ..........................................................................................................6

Sales and Distribution ...........................................................................................7

Branding and Marketing........................................................................................7

COMPETITION .........................................................................................................12

Gerber..................................................................................................................12

Beech-Nut............................................................................................................13

BRAND EXPLORATORY.............................................................................................15

Brand Position .....................................................................................................15

Target Market......................................................................................................15

Consumer Research..............................................................................................17

Consumer Perception...........................................................................................19

Consumer Based Brand Equity.............................................................................20

BRAND HEALTH........................................................................................................22

RECOMMENDATIONS..............................................................................................22

Reach Parents with New Media...........................................................................22

Promote Plum Organics’ B-Corp Status................................................................23

APPENDIX .........................................................................................................25

REFERENCES.............................................................................................................26


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EXECUTIVE SUMMARY After steady declines during the rescission the baby food industry is once again growing

and with it a new desire from parents to provide their children with cleaner, less processed foods.

Plum Organics in the matter of a decade has positioned itself as a major player in the baby food

market; the company has acquired 7.2% of the current market share as of 2015 (Watson, 2015).

However, competition from more experience household name brands Gerber and Beech-Nut is

also growing as they continue to grow their own organic product lines. By examining both

primary and secondary research, marketing tactics, consumer perception, and brand elements this

audit reccomneds that by building on and raising the awareness of Plum Organics’ brand image

as an organic-only environmentally and socially conscious brand, the company can expand their

reach and build loyalty among their target market while gaining an lead in consumer engagement

over the competition.

RECOMMENDATION FOR BRAND AUDIT Plum Organics has grown since its introduction into the baby food market in 2007. In

2015 the company’s sales grew 44.5% and acquired 7.2% of the United States’ baby food market

share (Watson, 2015). To continue the brand’s success in the growing baby food market Plum

Organics should evaluate its brand equity through a brand audit. A brand audit will examine the

strength of the brand’s image and products from both internal and external sources and as well as

determine if there are areas of improvement or potential growth and expansion. This can include

and evaluation of the brands physical elements such as logos and packaging, consistency of

message and visuals across products, and perception of the brand by consumers. (Keller, 2013, p.

265-267). Through a brand audit Plum Organics can discover ways to strengthen its brand to go


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up against major competitors and increase its market share, as well as up-and-coming small

private brands.

THE INDUSTRY

During the recession baby food makers took a hit in sales as more as more parents sought

to save money by making their own pureed foods. Parents were also becoming more aware and

concerned about what was going into their babies’ food, seeking organic and less processed

ingredients (Gagliardi, 2014). As the economy improves and parents return to the work force the

need and want for convenient pre-made baby foods and snacks has returned. The desire to have

healthy, more natural and organic selections has stayed a priority throughout the recession to

today. MarketWatch reports:

By 2020, the organic prepared baby food segment is expected to dominate the market by

accounting for a market share of almost 76%. The growing parental concern about the

safety of foods consumed by their children is the driving force behind the increasing

popularity of organic prepared baby food. Besides, these ready-to-mix and eat products

combine health and convenience and appeal to working mothers. Organic prepared foods

are available in jars and are sometimes frozen, depending on the ingredients

(MarketWatch, 2016).

To reach their parental target markets, baby food companies are continuing to focus on

traditional forms of media, such as television and magazines, to market their products. In 2015

alone, a reported $77 million was spent on television and print ads promoting baby and toddler

foods (Norton, 2016).


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As the want for organic baby and toddler food grows so does the competition. Plum

Organics is currently facing competition from well-known and established brands such as Gerber

and Beech-Nut who have expanded their classic baby food products lines to include organic

choices, and newer brands like Stonyfield Organic as well as private labels such as Happy Baby

and Ella’s (Statistic, 2016).

Figure 1, Unit sales of leading baby food and snack brands of the United States in 2016 (Statistic, 2016).

BRAND INVENTORYA brand inventory provides “a current comprehensive profile of how all the products and

services sold by a company are marketed and branded” (Keller, 2013, p 266). Brand inventories

allows a brand to examine all tactics and products they are currently engaged in and promoting

for possible improvement based on audit findings.


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PRODUCT LINE

Plum Organics was born in 2007 out of the baby food market’s need to provide organic

and convenient meals and snacks for the growing number of parents who were seeking clean and

healthy alternative to classic baby food without having to make it themselves. The products are

all organic; containing a variety of fruits, vegetables, grains, and protein ingredients. The meals,

snacks, boxed single serve meals, and re-sealable freezer bags (Plum Organics, n.d.).

Baby Meals/Snacks Toddler Meals/Snacks Kid Meals/Snacks

Organic Formula Mighty 4® Blends Mashups®

JUST® Veggies (4+ months) Mighty Snack Bars™ Jammy Sammy®

JUST® Fruits (4+ months) Mighty Veggie® Shredz®

Eat your colors® Mighty Dinos™ Frozen Bites

Grow Well® (6+ months) Mighty Squares ™

Second Blends (6+ months) Mighty Sticks®

Super Puffs® Mighty Mealtime™

Little Yums® Teensy Fruits®

Stage 3 Meals (6+ months) Super Smoothie

Hello Meals™


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SALES AND DISTRIBUTION

Plum Organics was bought by the publically traded Campbell Soup Company in 2013. At

the time Plum Organics was the “No. 2 brand of organic baby food in the United States” and the

“No. 4 baby food brand overall,” generating $93 million in sales by the end of 2012. (Campbell

Soup Company, 2013). Though now under the Campbell Soup Company umbrella, Plum

Organics is run as a standalone company. The acquisition of Plum Organics allowed Campbell

Soup Company to further diversify its brands by entering into the growing field of organic baby

nutrition, while also providing the channels necessary for Plum Organics to expand its

distribution in North America (Choi, 2013). Plum Organics is now available in major retailers

such as Whole Foods, Walmart, Target, Walgreens, Kroger, Harris Teeter and Toys R’ US and in

Canada at stores Loblaws, London Drugs and Sobey’s (Plum Organics, n.d.b).

BRANDING AND MARKETING

Logo and Packaging

The Plum Organics logo has stayed consistent since its inception while the packaging has

had an update since joining the Campbell’s Soup Company. To keep consistent and still be

recognizable to consumers Plum Organics has kept the logo on far left hand corner as well as

keeping a white background to accentuate the color on the packaging of the packages’ food

source.


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Figure 1: Image of Original Packaging Figure 2: Image of Current Packaging

Today plastic squeezable baby food and snack packaging is common place, but it was Plum

Organics that initiated this dramatic switch from the baby food jar. Founder Neil Grimmer states

about their baby and kids product packaging that:

“Plum pioneered the squeezable pouch format in the US baby food market, Consumers

have rapidly adopted the pouch and parents have come to trust Plum to nourish their

babies. Our Plum moms have asked for healthy snacks for school-age children, so we've

anchored the Plum Kids line around Mashups, a kid-friendly squeezable pouch snack. At

Plum, we believe that kids will make healthy choices if they are exposed to great tasting

food they can actually get excited about. We designed the Plum Kids line with playful

packaging, interactive food formats, fun product names, and kid-craveable ingredients, all

without compromising our highest nutritional standards” (Plum Organics, 2012).

B-Corp Status

One of the strongest brand assets Plum Organics has is its B-Corp status. B-Corps

(Benefit Corporations) “are for-profit companies certified by the nonprofit B Lab to meet


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rigorous standards of social and environmental performance, accountability, and transparency,”

bcorporation.net states that “B Corp is to business what Fair Trade certification is to coffee or

USDA Organic certification is to milk” (B Corporation, n.d.).

Plum Organics is the only B-Corp currently traded under a public company, and the only

baby food with the status. The brand’s focus is on promoting environmental and social

responsibility while also making a profit. The company’s B-Corp commitments are as followed:

Environment: Use 100% recycled paperboard; Have an active end of life recycling

program for pouch caps; >75% of office supplies from recycled/sustainable materials;

100% of GHG emissions from corporate headquarters are offset by certified carbon

credits.

Employees: >80% of health insurance premiums paid for individuals and families;

Supplemental benefits include dental insurance, short-term disability, long term-

disability, domestic partner benefits, adoption assistance and a health and wellness

program; lowest paid hourly workers receive >50% above the living wage

Community: Through The Full Effect®, Plum has donated over 8.6 million organic

meals & snacks to children in need; >25% of management are women and/or ethnic

minorities; Offer paid time off for volunteering

Consumers: All of our products are certified USDA Organic (B Corporation, n.d.b).

First Campaign

Plum Organics has been around for nearly a decade but the company has just in the past

year released its first marketing campaign: Parenting Unfiltered:


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Parenting Unfiltered - Plum Organics

The company has up until 2015 advertised through word of mouth via social media and instore

campaigns, Neil Grimmer states that “When we first launched seven years ago, our marketing

strategy was super scrappy, focused solely on grassroots, word of mouth and PR” (Oster, 2015).

The Parenting Unfiltered campaign seeks to speak to consumers the idea that parents aren’t

perfect but we’re doing our best. That message is one that reverberates with today’s parents who

often find them stuck in the middle of “mommy-wars,” trying (and failing) to portray themselves

as perfect and having it all together. The authenticity of the message seeks to build a trust with

consumers and also draw a correlation with the “unfiltered” ingredients of the products. Grimmer

says about the campaign that “Parenting Unfiltered came very naturally to us.” He added, “The

ultimate goal is to be thought of by our consumers as a trusted source and friend, so when they’re

in the baby-food aisle and it comes time to make that purchasing decision, Plum is that friendly

face on the shelf” (Oster, 2015).

https://www.youtube.com/watch?v=3PB_SdRWIS4


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The campaign also features a website, www.parentingunfiltered.com that features

encouraging videos, pictures, and articles from parents who have found themselves in “not so

perfect” yet real situations while navigating through parenthood.

Dear Mom Who Has Missed A Milestone, Or Two

The website seeks to get parents to start talking about their “unfiltered” experiences on social

media, stating: “This is parenting. It’s about taking a chance, living unscripted, admitting

uncertainty along the way. It’s complex, but that’s the best part. Why put a filter on it?”

(Parenting Unfiltered, 2015).

https://www.youtube.com/watch?v=lhISIKogYBc


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COMPETITION

Gerber

Owned by Nestle, Gerber’s strength is its household name status and the fact that it is the

market share leader when it comes to baby food. “According to Packaged Facts, Nestle/Gerber,

Abbott Laboratories, and Mead Johnson Nutrition control nearly 90% of the baby food category.

Gerber is dominant in prepared baby food, while Abbott and Mead are dominant in infant

formula” Gerber is a global force in baby food, a 2006 case study on the brand states: “The

company has continued to grow into the leading baby food global corporation that has nearly 190

food products; is labeled in 16 languages; is distributed to 80 different countries; and has

maintained one of the world's largest privet research facilities dedicated to infant nutrition”

(Dacha, 2006). Gerber classic, organic, and all natural products include:

Formula

Baby Cereal (oat and rice)

Gerber First Foods (single fruit and vegetable purees)

Gerber Second Foods (combination ingredients purees)


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Gerber Third Foods (more complex ingredient combinations, textures and meat)

Yogurt snacks

Snacks

Toddler meals and sides (Gerber, n.d.).

Negatives for Gerber include their currently small line (yet growing) of organic products

(Gerber, n.d.). With more demand for organic food for children, Gerber could fall behind in the

organic baby food market.

Beech-Nut

The second biggest competitor Plum Organics faces is Beech-Nut, another established

brand that in 2009 held 13% of the baby food market share (Federal Trade Commission, 2009).

Unlike Gerber, Beech-Nut took the information about the wants and needs of consumers coming

out of the recession and completely rebranded and overhauled their processing process of their


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line of baby food products. “After years of decline in the baby food category, Beech-Nut

Nutrition realized that moms trusted food they prepared in their own kitchens more than the

“watered down” and “processed” food they were getting from leading brands. To address those

concerns the company recently launched a completely new line of 100% natural products

inspired by the creativity of millennial moms” (Ellett, 2014). The brand’s strength lies within the

rebuilding of its brand image. Beech-Nut moved to glass jars that showed off the bright colors of

the unprocessed foods and even committed to a more environmentally conscious way of

producing and packaging its products (Beech-Nut, n.d.). Beech-Nut is now appealing to modern

parents who seek healthy non processed foods from foods with a socially conscious mission,

stating “This is not baby food, this is real food for babies” (Beech-Nut, n.d.).

Though it began in the 1930s in America, Beech-Nut is now a subsidiary of Hero AG of

Lenzburg of Switzerland, and is available in the global market (ODW Logistics, n.d.). Like

Gerber, Beech-Nut offers a classic line, a natural line, and an organic line featuring:

Cereals (oat, rice, multigrain, and quinoa)

Stage one (single fruit and vegetable)

Stage two (combination ingredients)

Stage three (complex ingredient combination, new textures and meat)

Stage four (yogurt blends) (Beech-Nut, n.d).

BRAND EXPLORATORY


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A brand exploratory is “research directed to understanding what consumers think and feel

about the brand and act toward it in order to better understand sources of brand equity as well as

any possible barriers” (Keller, 2013, p 267). Through Plum Organics’ brand exploratory, data on

consumer perceptions on not only of the brand but what the brand hopes to represent (organic

food, social and environmentally sustainability) will also be obtained to better determine if

current marketing and branding strategies are in line with public perception or if they could be

built upon to better represent the needs and wants of the target demographic – modern mothers.

Brand Position

To modern mothers Plum Organics prepared organic baby, toddler, kid meals and snacks

offers a wide variety of palate-expanding healthy choices that are packaged with convenience in

mind. Modern mothers return to Plum Organics time and time again because of the company’s

commitment to provide the best in non-gmo traditional and unique organic food for their children

while also committing to participating and promoting positive social causes and environmentally

sustainable practices. The Plum Organics brand is known for being a caring and conscious brand

founded by parents to provide the best possible nutrition for young children.

Target Market

Modern Mothers

Women and mothers are the most influential when it comes to purchasing household and

grocery items. Lauren Drell of Mashable states that “Mothers are the gateway to sales — women

make 85% of purchasing decisions in a household, and often that women is a mom. She's not just

buying for herself; she's also buying for the baby, the toddler, the teenager and for the entire


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soccer team” (2011). Because mothers are overwhelmingly the ones who decide what their

children eat, it is important to take into account the modern mother’s demographics, and general

psyche so brands can best communicate with the group of potential or returning consumers.

When it comes to modern mothers, The Pew Research Center has found that today’s mothers

are increasingly older, with 14% being 35 or older, and mothers are also increasingly un-married

at time of their children’s birth as attitudes about marriage continue to change. Most mothers of

newborns have some sort of higher education with this number increasing for mothers over 35.

Finally, 87% of mothers stated they had their first child because of “The joy of having children”

(Pew Research Center, 2010).

In the case of working mothers and how they perceive their schedules and happiness the

Pew Research Center reports that:

Working mothers often feel the pull of their competing roles in the office and at

home.

24% of the public reports always being rushed, fully 40% of working mothers

with children under age 18 say they always feel rushed, and another 52% say they

sometimes feel rushed.

Mothers who do not work (26%) and working fathers (25%) are much less likely

to always feel rushed.

Stay-at-home moms are about as likely to feel stressed (82%) as are working

moms (86%) but both are significantly more stressed than are working fathers

(74%). Still, while working mothers may face a more chaotic life, they are no less

happy than other parents.

Both 36% of working moms and stay-at-home moms — as well as roughly the

same number of working fathers (38%) — report being very happy with their

lives. And working moms are also just as likely to be very satisfied with their


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family life as moms who do not work (78% of working moms vs. 75% of at-home

moms).

One group that is less happy, however, are single mothers with children under age

18. Only 27% of this group say they are very happy, and just 63% are very

satisfied with their family life (Pew Research Center, 2009).

Consumer Research

A short survey of West Virginia University graduate students sought to form a stronger

idea of perceptions about organic foods as well as motivations for purchasing organic over non

organic, especially when it came feeding their families (see Appendix for a survey questions).

Results

12 graduate students responded to the survey. Of them, 67% of responders felt organic

food was healthier, 42% thought it was safer, while 16% felt organic food had no more health

benefits than non-organic. 58% view organic food as the more expensive choice, however, 42%

of responders said they would buy higher quality food for their children over themselves.

Overwhelmingly, all responders stated they are more willing to buy from a brand that is socially

or environmentally conscious.

Responders’ Motive Highlights

When asked their reasoning for why or why they would not pick higher quality food for

their children responders had the following to say:

“I would select a higher quality food for my child as I would want to be positive they were eating nourishing foods. I would eat the less healthy option.”


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“I always have control over what I eat. A child may be in the care of another parent, another caregiver, or school who likely would not be feeding them them healthier food. Also, children are growing and developing and what they are consuming effects physical and mental growth and health.”

“I do not have children now, but for the convenience of my family, I don't think I would buy them food that is different from what I would buy for myself.”

When asked why or why not they would be more willing to buy from socially or environmentally

conscious brand, responders stated:

“Personally, I've always been very interested when it comes to brands that have close ties to cause related organizations. I believe that being socially responsible and conscious is extremely important when it comes to business, and I believe people should be more willing to support those brands.”

“The world is a better place when we help and love one another”

“I would buy from a brand with a social mission behind their product. I like to see my money being invested in a company that wants to do something in return for others.”

Based on the results of the survey, Plum Organics has an edge in the market as their products, in

being organic, are perceived to be healthier and safer and parents are willing to buy “higher

quality” foods for their children’s benefit. Plum organics also has an edge as a B-Corp company

who is committed to positive social and environmental causes as consumers want to purchase

products they feel are making a positive impact on the world. All this being said, Plum Organics

does have to consider the collective thought that organic food is more expensive, which may lead

consumers to purchase competitor foods if on a tighter budget.


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Consumer Perception

To evaluate consumer perception about the Plum Organic brand externally, conversations

between consumers and the brand on social media was observed. In the past two weeks there

have been little if any negative comments on the Plum Organics’ Facebook or Twitter pages.

Furthermore, the conversation are of praise for new and staple products. Parents also often use

the platforms to upload pictures of their children enjoying Plum Organic products (Facebook,

2016). Among present consumers Plum Organics base seems to grow loyal followers who take

the time to post about their children’s experiences with the brand on a daily basis, thus become

brand evangelists themselves through their social media pages.

Figure 1 Consumer Facebook Comment


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Figure 2 Consumer Twitter Tweet

Figure 3 Praise from Consumers to the Brand

Consumer Based Brand Equity

Consumer Based Brand Equity is defined as “the differential effect that brand knowledge

has on consumer response to the marketing of that brand” (Keller, 2013, p 41). Through just the


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brand elements, the customer is introduced to the brand image Plum Organics is attempting to

project. Through the previously mentioned survey the brand can attest that the name itself, “Plum

Organics” in including the word “organic,” already creates the consumer perception of

healthiness and safer eating choices.

Furthermore, the logo design uses both blue and green. Blue is “perceived as trustworthy,

dependable” while green “connotes health, freshness and serenity” (Williams, 2007). The use of

type that seems more “loose” also adds to the image of being organic and natural. The leaf

outside the P also circles back to the fact that the food is made of natural less processed

ingredients. Just by viewing the logo, consumers can gain a great deal of knowledge about what

the brand is trying to represent when it comes to their product.

Though the company has just recently moved from solely marketing by word of mouth,

having these initial elements that both clearly state and allude to what Plum Organics is offering

to consumers will help create a greater brand awareness in the grocery food aisle as well in

future marketing endeavors moving forward.


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BRAND HEALTH

Plum Organics is a brand with a small loyal following that is set to become a bigger

player in the baby food market now that it has been purchased by the Campbell Soup Company.

The brand’s commitment and mission to be both socially and environmentally conscious while

still making a profit sets itself apart from its competitors, but they are not currently promoting

that fact effectively enough to give them a real edge. There are still some hurtles to becoming a

true competitor to Gerber and Beech-Nut. Plum Organics still lacks in overall brand awareness

and has a smaller reach due to its lack of traditional marketing over the years. With being bought

Plum Organics distribution is becoming wider and the ability to work with seasoned food sales

and marketing staff should lead to greater brand awareness through new and traditional

marketing outlets.

RECOMMENDATIONS

Reach Parents with New Media

As stated earlier in the audit, $77 million was spent on television and print ads in 2015

promoting baby and toddler foods (Norton, 2016). Plum Organics is new to traditional marketing

and needs to reach out to new parents through those mediums, however, Plum Organics needs to

position itself as the future of baby food and in doing that must take up digital marketing as well

to increase their brand awareness and reach while separating itself from the older brands such as

Gerber and Beech-Nut.


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Plum Organics is currently underusing its social media outlets and producing very little in

video on a regular basis. Videos get more shares on social media, and recently Facebook Live

videos that are recorded live but then archived to your page are extremely popular. Syndacast, a

leading digital performance marketing company, predicts 74% of all internet traffic in 2017 will

be video (Mawhinney, 2016). Plum Organics needs to utilize the video as a storytelling media to

reach parents and promote their brand and products.

Tactics

Find humorous “spokesmoms” to star in loosely scripted (for authenticity) online videos

featuring entertaining cooking, baby and child “hacks”, crafts, child safety subjects, mom

confessions, events, community outreach, and children. The activities and subjects when

appropriate should feature natural and organic elements to stay in line with the brand

image.

Outcomes

Expand reach among modern parents through social media sharing

Build brand awareness

Build consumer relationships and promote engagement on social media

Promote Plum Organics’ B-Corp Status.

Looking at Plum Organics current packaging or marketing campaign, there is no mention

of the company’s B-Corp status. This is a disservice to the brand because it is currently 1) the


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only B-Corp company that is publically traded (under Campbell Soup) and 2) companies that are

seen as socially and/or environmentally conscious are viewed upon favorably among millennials,

a group who have or are on the verge of starting their own families. Nielson states: “Despite the

fact that Millennials are coming of age in one of the most difficult economic climates in the past

100 years, they continue to be most willing to pay extra for sustainable offerings—almost three-

out-of-four respondents (73%) in the latest findings, up from approximately half in 2014”

(Nielson, 2015).

Tactics

Design new packaging to feature the B-Corp logo and also with a blurb on the back of

packaging summarizing Plum Organics’ commitment to their favored social causes and

environmentally stability.

Promote and inform consumers about what the B-Corp status means and Plum Organics

specific commitments to the community, employees, and environment in their marketing

campaigns.

Outcomes

Build brand awareness

Make the Plum Organics brand image synonymous with positive socially and

environmental pursuits and change.

Build a loyal base of customers and brand advocates


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APPENDIX

Demographic Questions - Only answer these if you feel comfortable giving the information:

Are you a parent? y/n

How many children do you have?

o 1

o 2

o 3

o 4 or more

Questions

What is your perception of organic food? (select all that apply)

o It is healthier

o It is safer

o It has no more health benefits than non-organic foods

o It is more expensive

o It is less expensive

o Other:

Do you or would you pick what you considered a “higher quality” selection of food for your children over what you would pick for yourself? y/n

o Why or why not?

Are you more willing to buy from a brand that also has a socially and/or environmentally conscious mission? y/n

o Why or why not?


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B Corporation. (n.d.). What are B Corps? Retrieved from https://www.bcorporation.net/what-

are-b-corps

B Corporation. (n.d.b). Plum Organics. Retrieved from

https://www.bcorporation.net/community/plum-organicsBeech-Nut. (n.d.). Our Values. Retrieved from http://www.beechnut.com/our-values/

Campbell Soup Company. (2013, June 13). Campbell Completes Acquisition of Plum Organics.

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newsArticle&id=1829771

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http://www.marketwatch.com/story/organic-baby-food-market---1151-cagr-to-2020-driven-by-emea-2016-07-07-4203226


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Norton, A. (2016, November 1). Big money spent marketing unhealthy baby, toddler foods.

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baby-toddler-foods/

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