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Kraft Mac & Cheese Integrated Marketing Communications Plan COMM 211: Principles of Advertising The Kraft Heinz Company Kraft Mac & Cheese Client’s Angels Tyler Hughes, Melissa Messler, Briana Mcnulty 08/12/2016 1

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Page 1: Kraft Mac & Cheese Integrated Marketing Communications ...tylershughes.com/wp...ClientsAngelsIMCPitchDeck1.pdf · Kraft Mac & Cheese Integrated Marketing Communications Plan ... 6

Kraft Mac & Cheese Integrated Marketing Communications Plan

COMM 211: Principles of Advertising The Kraft Heinz Company Kraft Mac & Cheese

Client’s Angels Tyler Hughes, Melissa Messler, Briana Mcnulty

08/12/2016

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Page Number Content

3 Agency Philosophy 4 Executive Summary 6 Review of Marketing Plan 10 Company Snapshot 12 Description 13 SWOT Analysis 16 Key Benefits 19 Competitive Review 22 Programs 24 Marketing Goals 25 IMC Objectives and Strategies 30 Creative Recommendations 33 Creative Executions 47 Media Recommendations 50 Media Flowchart 51 Budget Breakdown 52 IMC Recommendations 55 Campaign Flowchart 56 Measurement and Evaluation 59 Budget Summary 60 Conclusion 62 Appendices 64 References

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Client’s Angels brings together three unique individuals, all from various backgrounds, who have joined together to work for you: our client. At Client’s Angels, we want to give you the most professional, seamless experience possible. We understand that there are numerous agencies that are vying to sign a new client to their roster, but we find that these agencies do not offer the unique stance that we offer. We’re not afraid of words like “digital” or “social”: We’re not afraid to tackle a brand’s digital and social media issues, which is why we take the time to pay attention to analytics, website traffic, and creating quality digital and social media content. We’re creative and always think quickly on our feet: While we make sure to pay attention to metrics and data, we also find balance in delivering creative content. We deliver professional writing and art samples to clientele, but we also ensure that our unique, edgy, and fun creative elements are stamped and integrated into our work. We take the word “communications” seriously: There’s no issue that we won’t tackle because we are prepared to actually communicate with our clients. Whether it’s researching the client’s background extensively to address problems quickly, taking the time to draft written proposals and campaigns, or familiarizing ourselves with our client’s needs, we want our clients to know that consistent communication and always meeting their needs in a dedicated and timely manner are our top priorities. We take pride and ownership in delivering this experience to our clientele because this is what distinguishes us against our agency peers. We’re not saints, we’re even better and we’re here to give our client what they deserve: a professional walk in the clouds.

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Kraft Mac & Cheese is a packaged, dry macaroni and cheese mix produced by the Kraft Heinz company. In production for over 75 years, the product has been a staple to the Kraft brand and has taken on various incarnations over the years to serve Kraft’s target audience. In early 2016, Kraft introduced an ingredient shift to its popular macaroni and cheese product, replacing artificial coloring with natural ingredients such as turmeric, annatto, and paprika. Hesitant to announce the addition of the new natural ingredients to the product because of fears that consumers perception of the product would be changed , 1

Kraft did minimal coverage and announcements of the product renovation. Kraft would later announce that the renovation was the “world’s largest blind taste test,” as consumers were not aware that the product had fundamentally changed. Client’s Angels understands that Kraft had much success later in 2015 and early in 2016 with the launch of the ingredient shift. Their main goal in implementing this strategy was making sure that consumers weren’t overtly aware of the shift, as to not make impressions on the brand and shift consumers’ psychology that the product had lost its brand equity. We want to build off of this success, but we also think that it is time that consumers embrace the ingredient change, otherwise, Kraft macaroni and cheese may continue to be seen as a “junk food” brand and the product may follow the leading trend of declining boxed prepared meal sales. Our major target audiences for this campaign includes women, ages 25­35, who are mothers and who want to utilize Kraft macaroni and cheese for family dinners. These mothers want to give their children meals that they prefer, but also meals that hold

1 Bariso, Justin. “How Kraft Used Psychology to Make Its Mac and Cheese Go Viral.” Inc.com. Web. 21 Mar. 2016.

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healthy patterns in them as well. We want to reach older consumers because they have the power to actually buy the product. Also in the target audience are millennials and “free­from” consumers, who want “free­from” products , products free of artificial flavors 2

and colorings, chemical preservatives, and GMOs. To this target audience, we want to consistently communicate that the the new, re­branded Kraft macaroni and cheese is well suited for their purchase because it is steadily leaning into a “free­form” product. The objectives for this campaign include increasing 2016 net sales of Kraft macaroni and cheese of 80 million units by 5% by the end of the fourth quarter of 2016, increasing brand sales of $6.9 billion by 5%, and increasing the position of the brand in the food and beverage industry from number 5, to number 2. This campaign also seeks to raise awareness amongst the targeted audience on social media of the product’s natural ingredients and the brand’s shift into the natural and organic food sector by 50%. These objectives will be achieved through an effective integrated marketing communications plan, including creative television and digital advertisements, a public relations campaign, social media tactics, direct mail and marketing to the target audience, and use of coupons, in­store events, and sweepstakes to boost sales. Through the combination of these promotional elements, Client’s Angels believes that this campaign will create measurable and repeated success for Kraft macaroni and cheese, which will be evaluated near the end of the fourth business quarter of 2016. In conclusion, Client’s Angels offers Kraft a unique way to raise awareness of the use of natural ingredients in its macaroni and cheese. We also want to present Kraft with the opportunity to position itself as a dominant competitor in the natural and organic food sector through one of its popular and signature products. With a budget of $665,632, a set timeframe, and a commitment to success that only Client’s Angels can offer, we invite you to #noticethenatural and offer your consumers the thing that they want most: a tasty macaroni and cheese that is good for them. 2 Gelski, Jeff. "Mac and Cheese Moves to Forefront of 'free­from' Trend." Food and Beverage News, Trends, Ingredient Technologies and Commodity Markets Analysis . 24 May 2016. Web. 10 Aug. 2016.

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Industry background:

Over the decades, Kraft has saw its brand grow and new product lines of different flavors and pasta shapes have been introduced to its portfolio. Kraft Macaroni and cheese is currently perceived as an inexpensive, easy­to­make comfort food, with high value and convenience.

The Mac and Cheese Dinner was originally marketed as Kraft Dinner with the slogan “a meal for four in nine minutes for an everyday price of 19 cents.” It was later renamed to Kraft Macaroni & Cheese. The product has always been promoted toward children encouraging them to ask their parents for “The Blue Box.”

Company Overview + Growth:

Kraft Foods Group, Inc. is one of the largest consumer packaged food and beverage companies in North America and worldwide. Kraft Foods Group and H.J. Heinz Company announced that they would merge into The Kraft Heinz Company, becoming the third largest food and beverage company in North America. In 2014, Kraft gained a stock appreciation of approximately 38% after the merger announcement. The biggest revenue streams of Kraft are from the cheese and refrigerated meals segments. Kraft Foods North America generates 73 percent of revenues for the company.

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Current trends/developments affecting the promotion program: A recent trend in the food industry has seen a change in preferences amongst

the millennial generation. According to the latest survey from Mintel, there is a rising health awareness among consumers and this is causing them to purchase healthier organic food options. On the other hand, millennial consumers are also starting to buy more convenient, faster to make, food, and packaged foods have increased since 2015. Higher convenience foods will drive the prices of packaged food up in the years to come, which overall is a good sign for companies such as Kraft.

Macro­environment factors and issues:

Demographic ­

Kraft Macaroni & Cheese is preferred by higher income consumers ($100k­125k) and Caucasians who tend to be lower middle age (35­44). These consumers are more likely to be female and have children. 3

Economic ­

Interest rate: According to an article of the Business Wire, 2010, “Food companies continue to seek acquisitions and organic growth to boost their overall growth rates. Debt reduction is not likely except for Kraft and Ralcorp Holdings, Inc., since both companies increased leverage materially for acquisitions in 2010.”

Level of inflation: As a food, bakeries, and biscuits producer Kraft is very sensible to the rate of raw material, corn, milk, flour, eggs.

Employment levels: According to Ellen Simon, 2006, when Kraft Foods bought Nabisco, 25% department was laid off on the same day in 2004. They expected to save $1.5 billion in annual costs by 2017 because of this.

Exchange rate: Adapted from what Timothy McLevish (Chief Financial Officer) said in the Earning conference call in November 2010, Kraft Foods has a very complex portfolio of currencies, which explains why they are less impacted by just a decline in the value of the dollar or an appreciation of the dollar because they have a lot of input costs.

3 "Kraft Macaroni & Cheese Consumer Insights and Demographics | InfoScout.co." Infoscout.co. N.p., n.d. Web. 27 July 2016.

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Political ­

The stability of the political environment: According to K. Blanchard, 2009, the decrease in the company's results is due to foreign currencies, it could also be linked to the inflation and soaring of raw material and petroleum.

Local taxation: Every state in the United States has different taxation and in some there are low rate of taxation.

Government involved: Irene Rosenfeld, Chairwoman and CEO of Mondelēz, declared in an interview with David Lieberman in 2010, 'I don't think there's any indication that having the government involved will necessarily make that a more effective process or have the desired outcome. There's ample evidence that we can in fact work together in a productive way, and that's a more effective way to address the issue.' This answer illustrates that the government is neither apart from the policies of the company nor influencing strategies.

Social welfare policies: According to the Right vision news, 2010, 'People for the Ethical Treatment of Animals has been buying shares for seven years and now owns a piece of at least 80 companies, including Kraft Foods. It hopes to influence their animal welfare policies on such things as how chickens are slaughtered or buying pork from suppliers that keep pregnant sows in small crates.' That means Kraft should take social policies into consideration as it appears to be relevant in people’s mind and consumer behaviour.

Legal ­

Legal protections: Due to an Equal Employment Opportunity Commission's affair in which Kraft was sued, the company 'has agreed to train managers on laws prohibiting age discrimination.' (Reuters, 2002)

Consumer laws, right to consumers' products, components: According to Anna May Kinney, 2008, 'During September 2000, Kraft Foods Inc. scrambled to recall taco shells made from StarLink corn, a type of genetically modified corn unapproved for human consumption'. Consumers have the right to know what they are eating and the right to choose foods with GMOs or non­GMOs.

Sociocultural­

Lifestyle trends: The issues of obesity, healthcare, and preference of organic products, all play a key role in how the product is viewed. According to Kristopher J. Blanchard, 2009, the rate of obesity in North American boys increased from 11% in 1980's to over 30% in 1990's. This trend can either represent a weakness for Kraft macaroni and

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cheese if it is viewed as an unhealthy product, or an opportunity that the brand can mount if it seeks to transition into natural and organic food markets.

Consumerism popular attitude: Kraft’s interest as a brand is following consumers' habits and adapting their products to meet the demands and lifestyles of their consumers.

Environmental ­

Environmental issues: Jonathan Horrell, Corporate Affairs Director of Kraft, put forward Kraft's implication in environmental issue across the cycle journey, which "highlights the fact that [Kraft is] taking a more active attitude towards environmental issues." 4

Ecological: Kraft is gradually adapting a sustainable attitude and strategy by focusing on the raw materials used in its macaroni and cheese production, methods of production, transportation of the finished product to grocery stores, and the recycling of packaging.

Waste disposal: Kraft Foods' manufacturing plants are making substantial headway towards sustainability goals.

4 "Market Position and Strategy for KRAFT FOODS INC." UKEssays. N.p., 23 Mar. 2015. Web. 26 July 2016.

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Place in industry (size, growth, image)

Kraft is developing new and creative ways to attract consumers by introducing new methods of sales promotion, new products and new ingredients to their famous macaroni and cheese dinners. The company employs 117,000 and still growing. Their sales are around $34.7 billion (2000 pro forma) and the brand is valued at $9 billion. According to Forbes, Kraft Foods is #62 in the world’s most valuable brands list. The 5

macaroni and cheese dinners are the most famous of Kraft's products and it has a great impact on the company. The company’s current product list shows at least 50 macaroni and cheese varieties sold in stores, including 18 different flavors that come in the classic blue box. Recently Kraft’s macaroni and cheese dinners’ image has improved as the brand has removed artificial preservatives, flavorings, and dyes from the product.

Sales History When Kraft announced in April 2015 that it was removing artificial flavors, dyes, and preservatives from its mac and cheese, the company sold 80 million boxes when the product with the new ingredients was introduced in January 2016. 6

5 Tuttle, Brad. "5 Amazing Facts About Kraft Macaroni and Cheese and Heinz Ketchup." Time. Time, 26 Mar. 2015. Web. 26 July 2016. 6 "Kraft Macaroni & Cheese: A History." Tribunedigital­chicagotribune. N.p., 14 Aug. 2015. Web. 27 July 2016.

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Target markets Kraft’s target audience for its macaroni and cheese product include millennials, economically­strapped consumers, consumers who are interactive with technology, and those who focus on nutritional value and well­being when shopping. Middle Income consumers make up about 51.1% of the product’s target audience. Millennials represent 26% of the U.S population currently, and one can see that it is their influence that is creating a cultural shift toward emphasis on healthy, quality of life and “real food.” These millennials exhibit a shopping behavior that can be described as more planned and full of purpose. 7

Corporate Strategy As a brand, Kraft focuses on three “C’s” in its strategy in response to changes in markets. Consumers: Kraft pays attention to the change in consumers’ income, background, demographics, and values. Kraft is creating new food products and providing new flavors in accordance to the demands from the Hispanic population and millennial generation, both of which have more potential to increase the company’s sales and profits. Customers: Having unique price packs are essential for Kraft to gain more of the market shares in both traditional and nontraditional channels. Kraft will continue focusing on promotion programs to increase the volumes. Communication: Kraft bases its strategy on the change of the market and consumers’ demands. This allows Kraft to focus on how to improve its efficiency and whether changes made previously were effective by using data measuring tools. Kraft believes that it is important to hear customers’ thoughts, this is why they want to communicate through digital and data­ready mediums such as social media. This is useful because it reflects the market’s response to any change the company has made in its products and strategy. 8

7 "Frozen Foods Consultative Group." Nature 162.4118 (1948): 522. Kraft Foods Group. Cagny Conference, 18 Feb. 2014. Web. 27 July 2016. 8 https://tippie.uiowa.edu/krause/spring2015/krft_sp15.pdf

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Market share, sales, growth Within its grocery segment, where most consumers buy the mac & cheese dinners, Kraft is the second leading company, behind Conagra Foods Inc., with 17.14% market share. Krafts sales are about $6.9 billion and currently increasing. Kraft’s market is always changing and this is why the company has to capture profitable growth by evolving their playbook: reinventing marketing, extending innovation to renovation, building brand ubiquity across retail channels, providing total cost management and reinvesting 50 cents of every $ of cost savings back into brands and people. By evolving these, Kraft has managed to grow and has opportunity for growth. The graph below demonstrates the grocery sales trends for 2015 and shows how boxed prep dinners are gradually declining, giving us the opportunity to strategically develop the Kraft brand and their macaroni and cheese products.

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Strengths ­ Strong manufacturing and distribution ability: Kraft has 34 manufacturing and processing facilities in the U.S. and 2 in Canada. The company also operates 36 distribution centers in the U.S. and 3 in Canada. Each of these distribution centers includes facilities for storing refrigerated, dry, and frozen goods. This strong manufacturing and distribution network allows Kraft to supply fresh and high quality food and beverages to its customers. Nutritional Value­ The nutritional value of Kraft macaroni and cheese is similar to its largest competitor in the organic and natural food sector, Annie’s. They have similar numbers of calories, protein, sodium, and fiber, while Annie’s apparently has more saturated fat. This works in favor of the Kraft macaroni and cheese product because if consumers wanted to compare both products, they would have no basis to call the product unhealthier than its competitor. 9

Established brand­ Kraft has dominated the food and beverage industry for over 75 years. Because of this, its brand equity is very high with consumers. More so, when the Kraft­Heinz merger took place it also came associated with a cost­saving plan, aiming for an annual reduction in $1.5 billion by the end of 2017. After the merger, Kraft’s market in North America, will have higher economies of scales, meaning that they will save costs by increasing the level of production. This will bring forward a lot of positive influence for Kraft’s credit rating as well as brand loyalty, since North America is Kraft’s main market.

9 Foster, Kim. "Why You Should Never Make Box Macaroni & Cheese Again: A Manifesto ­ Imperfect Parent." Imperfect Parent . 2008. Web. 10 Aug. 2016.

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Ease of production­ Kraft macaroni and cheese is arguably an easy product for families and those who are “on the go” to use. Six simple steps allow anyone to make a box of the classic product, which includes boiling water, cooking pasta, and combining the ingredients all available in the box to create a simple but classic meal. Weaknesses ­ Cash Reserve Concern: Kraft recorded a sharp drop in free cash flow from $4,379 million in 2013 to $608 million in 2014, which raised a cash reserve concern. Although Kraft increased its dividend payout in 2014, investors still will doubt whether Kraft can have a good liquidation in the future to avoid credit degrading and to ensure the ability to afford cost of debt and dividend payments. Product Recalls: In March 2015, Kraft recalled 6.5 million cases of its cheese product which were thought to contain metal; in May through June of 2014, Kraft recalled 1.2 million boxes of the macaroni and cheese product which were not properly stored and thought to cause illness. In October 2013, Kraft recalled 735 thousand varieties of its cheese products which were thought to spoil before expiration date. By having Kraft being involved in all these recall issues it might lower consumers’ satisfaction and give Kraft a bad reputation, as well as increase its expenses. Nutritional Value and brand image­ Kraft macaroni and cheese has been seen by many as a “junk food” product, a product that has no nutritional value and is unhealthy. This has severely impacted the entirety of the brand itself as consumers, especially “free­form” consumers, feel less likely to buy a product that has no nutritional or healthy benefits. Even with the inclusion of natural ingredients into the product, the brand still faces criticism that macaroni and cheese isn’t healthy for consumption. 10

Opportunities ­ Market Expansion: As Kraft continues to advertise the natural ingredients in its macaroni and cheese product, it may have the opportunity to develop and establish itself in a new market that the brand has yet to dominate, the organic and natural foods market. “Better­for­you” Options: In North America increasing demand for healthy foods is a great opportunity for Kraft as it can create into “better­for­you” options. Kraft has already invested significant research into healthier products and has changed its ingredients

10 Tascarella, Patty. "Kraft Heinz Hoping New Mac & Cheese Recipe Means More Sales, Market Share." Widgets RSS . 08 Apr. 2016. Web. 10 Aug. 2016.

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from processed to a more healthier recipe (removed artificial flavors, dyes, and preservatives). Threats ­ Rising price of commodities: In the past few years the price of dairy products, meat, coffee, and beans has gone up, which are all part of Kraft’s top 5 revenue producing product categories. Because of this, Kraft has raised its prices across 45% of its product portfolio, this has made Kraft’s market share decrease in a few product categories, but the most affected ones are the cheese and meat categories. 11

Agricultural practices­ As a brand, Kraft could face major backlash if their agricultural practices and relationships with produce farms, dairy partners, or workers is not positive or if their practices with these entities are not transparent with their consumers. More than ever, food brands are finding more opposition with consumers when they are not transparent with their agricultural or production practices with consumers. Kraft must mitigate this by making this information readily available to their stakeholders.

11 https://tippie.uiowa.edu/krause/spring2015/krft_sp15.pdf

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There are many benefits that the Kraft Mac & Cheese Dinners bring to the market and to its target audience, these benefits are the following:

Easy to make comfort food Inexpensive Convenient Healthy (removed artificial flavors, dyes, and preservatives) Minimal ingredients needed

Brand Image Kraft macaroni & cheese has been one of the most iconic American meals, with both children and parents recognizing the brand for almost 80 years. Kraft macaroni & cheese has outstanding brand equity among its consumers in its current market of packaged comfort food. Its current move towards “better for you” products is in line with health­conscious consumer trends. Currently Kraft is trying to change their brand image from an unhealthy, packaged comfort food to healthy, organic convenient meals. 12

Positioning Kraft’s has focused on carefully leveraging the consumers changing tastes and lifestyles to strengthen its products. Kraft’s management team saw that there is a high growth in the healthy packaged food business. Their assessment revealed that due to changing lifestyles, demographics, single parent families, and two working parents that the healthy packaged food segment presented a big opportunity for their business. 13

12 Baertlein, Lisa. "Kraft Challenged by Healthier Macaroni and Cheese Brands."Reuters. Thomson Reuters, 30 Mar. 2014. Web. 05 Aug. 2016. 13 Magwood, Johnny D., Dr. "Kraft Foods Inc. – Marketing and Managing the Customer Relationship ." Customer Think. N.p., 27 June 2015. Web. 05 Aug. 2016.

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Kraft is now focusing on positioning its brands and products to a healthier market. To do this the company is doing the following:

Reducing calories and nutrients to limit Beneficial substances, food groups and nutrients to encourage Simpler ingredient lines Farm to consumer

Client’s Angels Positioning Statement “Kraft macaroni and cheese is using all natural ingredients in its recipe because we

know that giving natural ingredients and a healthy option to your family, your friends,

and your “on the go” is just as important as having a meal that is tasty, popular, and that

has been on your shelf since you were a kid who was “on the go.”

Perceptual Map The graph below shows that Kraft is perceived as possessing high quality compared to competing brands, which means that people are willing to pay growing prices for Kraft products such as their macaroni and cheese. 14

14http://image.slidesharecdn.com/kraftanalysis­141213215920­conversion­gate01/95/kraft­analysis­13­638.jpg?cb=1418508053

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Category Development Index (CDI) CDI = (54%/37%) X 100 = 146 This was calculated by taking the percentage of mac and cheese total sales in the boxed prep dinners market and dividing it by the percentage of total U.S. population in the same market and then multiplied all of it by 100. An index number higher than 100 means that the product category’s sales in the market is high, but not to an extreme. The CDI of 146 for mac and cheese in the boxed prep dinner market shows that the boxed macaroni and cheese has a strong presence in the market. Brand Development Index (BDI) BDI = (78%/37%) X 100 = 211 This was calculated by taking the percentage of Kraft mac and cheese total sales in the boxed prep dinners market and dividing it by the percentage of total U.S. population in the same market and then multiplied all of it by 100. An index number higher than 100 means more market potential exists and there is high potential for kraft mac and cheese development. Analysis of CDI and BDI Both CDI and BDI have an index number higher than 100, this means that the boxed prep dinners market has a high market share and a good market potential. This market usually represents good sales potential for both the product category (mac and cheese) and the brand (Kraft mac and cheese).

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Direct and Indirect Competitors Direct: Smaller brands made with more natural ingredients are becoming the main competitor. Similar food and beverage companies have been trying to keep up with the consumer health trend in order to stay on top. Annie’s INC Annie’s is a Berkeley California­based maker of natural and organic pastas, meals and snacks. Annie’s Inc is a key rival in Kraft’s success because of the natural and organic foods they provide for consumers. Annie’s was once sold only at specialty retailers like Whole Foods but is now available at Wal­mart stores Inc, Kroger Co, and other mass­ market grocers. Annie’s pasta section includes mac and cheese, deluxe mac and cheese, microwavable mac, canned meals, and pasta meals. Trader Joe’s Trader Joe’s is a privately held American chain of specialty grocery stores. Trader Joe’s organic pasta shells are made with all natural ingredients, making them a huge competitor. Amy’s Amy’s Kitchen is a family owned, privately held company that manufactures organic and non­GMO convenience and frozen foods making them a key rival with the consumer health trend. WhiteWave Foods The WhiteWave Foods company, a consumer packaged food and beverage company, manufactures, markets, distributes, and sells branded plant­based foods and beverages, dairy products, and organic salads. This company is the No. 1 U.S dairy purveyor by sales and It’s new mac and cheese is already sold by natural and

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mainstream growers, making them a huge competitor with the new health trend. The company sells its products to grocery stores, mass merchandisers, club stores, convenience stores, and health food stores. Indirect: Campbell Soup Company The Campbell Soup Company, also known as Campbell’s is an American producer of canned soups and related products. Campbell’s products are sold in 120 countries around the world, making them an indirect competitor when it comes to choosing quick and convenient foods. Campbell makes many simple snacks and beverages that are very well known. They are also jumping on the health trend with new organic products and natural ingredients. Current advertising, sales promotion, public relations, and direct marketing Advertising/Public Relations

The reformulated Kraft mac and cheese was meant to be kept a secret from the public because Kraft was worried that if it made too big a deal about using a different formula, customers would perceive a change in flavor that wasn’t really there. Now that the silence is over Kraft has released a major marketing campaign with the theme: “It’s changed. But it hasn’t.” The campaign includes broadcast and online commercials featuring former SportsCenter and late­night t.v. host Craig Kilborne, along with the hashtag #didntnotice. Other advertisements include print advertisements in 15

publications such as People, Entertainment Weekly, and Better Homes & Gardens, as well as the one day Pandora takeover. Sales Promotion Tactics such as giveaways with branded prizes rewarded active online customers. In order to introduce the ingredient change, Kraft has been giving away t­shirts and over­sized macaroni­ inspired body pillows to customers via social media while using the hashtag #didntnotice. They also offer 200 dollar cash rebates or free microwave­and­dishwasher safe bowls with a purchase of Kraft Mac & Cheese in order to get consumers excited about buying their products.

15 Bariso, Justin. “How Kraft Used Psychology to Make Its Mac and Cheese Go Viral.” Inc.com. Web. 21 Mar. 2016.

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Direct Marketing Kraft uses its Facebook page to run a promotion with an attached email element which invites users to try a free sample in exchange for providing their email address. This provided the company with a list of already brand­engaged, product ­familiar consumers to market to. Kraft uses social media to drive email acquisition in hopes of receiving new customers.

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Message Strategies Key Messages to Target Audience

1. Kraft macaroni and cheese is transitioning to using all natural ingredients in its recipe and structure. 2. Kraft sold 80 million units of macaroni and cheese in 2016 without the major target audience being aware that the product had incorporated natural ingredients into its recipe. 3. Kraft is choosing to focus on using natural ingredients in its macaroni and cheese because it is a signature of the brand and it is a product that people have grown up with and one that people are choosing to introduce to their families.

Key Priority Issues

1. Kraft macaroni and cheese is viewed as a “junk food” brand, one that consumers may feel is a “guilty treat.” This perception of the brand harms it as consumers, especially parents with buying power and millennials who want “free­from” products, will be less likely to buy the product if it continues to be associated as a junk food or low quality meal. 2. Low awareness level of the incorporation of natural ingredients into the product, as well as low awareness of brand shift to the natural and organic sector. 3. Lack of appropriate media coverage of ingredient shift. 4. Decreasing boxed prepared dinners presence in grocery stores across the nation down by 8%.

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Buyer Analysis Our target audience focuses on parents, specifically mothers’ ages 24­35 that have the buying power. This includes middle­income families that are influenced by their children. Moms want quick, easy and convenient choices for their children so we want to focus on the families that are on the go. We also want to focus on millennials that want “free from” products, or food and beverages that are free of items such as artificial flavors, colors, and chemical preservatives. 16

16 Gelski, Jeff. "Mac and Cheese Moves to Forefront of 'free­from' Trend." Food and Beverage News, Trends, Ingredient Technologies and Commodity Markets Analysis . 24 May 2016. Web. 10 Aug. 2016.

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Marketing goals of this campaign should be measurable, specific, and quantifiable. The main marketing objectives of this campaign is to increase early 2016 net sales of 80 17

million units by 5% by the end of the fourth quarter of 2016 and increase brand sales of $6.9 billion by 5% by the end of the fourth quarter of 2016 as well. 18

A budget for this campaign is rooted in the objective and task method, a buildup approach that defines the communication and marketing objectives and determines the specific strategies and tasks needed to attain them. Client’s Angels will estimate the costs associated with performance of these strategies and tasks.

Sales volume After introducing the ingredient change, Kraft macaroni and cheese sales

increased to 80 million units according to the company. Client’s Angels commends this. However, now that we want the ingredient shift to be more easily recognized, we argue that with our IMC plan, we want to increase sales volume, reasonably, by 5% over the fourth quarter of 2016, which will see a sales increase of 4 million.

Increase brand position in the food and beverage world from number 5 to number 2. 19

In regards to developing a solid marketing strategy for Kraft macaroni and cheese with an emphasis on raising awareness about the brand’s incorporation of natural ingredients to the product, as well as establishing a competitive advantage in the natural and organic food and drink market, key messaging and positioning should be utilized to take advantage of effective marketing to the target audience.

17 "Sales of Kraft's Mac and Cheese Hit 80M After Ingredient Change." ­ Honolulu, Hawaii News and Weather . 21 Mar. 2016. Web. 10 Aug. 2016 18 Forbes . Forbes Magazine, n.d. Web. 10 Aug. 2016. 19 "A Platform for Performance." The Kraft Heinz Company . Web. 10 Aug. 2016.

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Client’s Angels understands that Kraft is a dominating brand in the food and beverage industry. Our main mission in working with Kraft is complementing and elaborating on this fact of the brand that people have grown up with and have grown to love and incorporate into their homes. Our main strategy in working with Kraft is developing a consistent identity and messaging for the brand that will separate it from the “junk food” world that millennial consumers often stick the macaroni and cheese product to, and building the product identity to be able to credibly compete with organic and natural food brands that also offer macaroni and cheese as their primary product. Implementing this IMC plan will not only increase the sales of the brand, but it will also allow the brand to reach new target audiences and consumers and become a dominating and authoritative force in the organic and natural food market. Looking into the mission statement of the brand, one can see that it is structured around the brand’s performance, with nutrition being the last concept mentioned to the consumer. Client’s Angels’ wants to shift this statement so that health and nutrition are prioritized in the mission statement and less emphasis is placed on the brand’s desire to amp itself up, choosing instead to place more interest and focus on the consumer. Current Mission Statement The brand’s current mission statement states that it is a “globally trusted producer of delicious foods, the Kraft Heinz company provides high quality, great taste and nutrition for all eating occasions whether at home, in restaurants or on the go.” 20

20 http://www.kraftmacandcheese.com/

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Client’s Angels Mission Statement The Kraft Heinz company is a beloved and performance driven brand, housing the favorite products that frequent your cupboards, such as our popular macaroni and cheese. While we put a high emphasis on our position in the food and beverage industry, the most important facet of our company is providing healthy and tasty food to people all around the world and offering experiences rooted in childlike joy in homes, restaurants, and on the go. Establishing a vision statement for Kraft that announces its long­term focus on quality nutrition, natural ingredients, health, and leaning into the organic food sector is important to Client’s Angels because doing so relates to the IMC strategy that will allow Kraft and its macaroni and cheese product to be viewed as healthy and preferable to consumers. Client’s Angels Vision Statement Kraft’s vision is to be viewed as a brand that is prefered by consumers because of the nutritional value, natural ingredients, and transparency that it offers in the products that it produces. Kraft will continue to be transparent on the use of natural ingredients to the products that our consumers know and love and will continue to be an established brand that the consumer can trust to deliver tasty and natural foods. Awareness Objectives Through the use of advertising, make 50% of the target audience of consumers on the product’s social media platforms aware of the new recipe, including the three principal natural ingredients, by the end of the fourth business quarter 2016. Liking Objectives Increase social media engagement (the number of likes, followers, retweets, reblogs, mentions, etc.) by 10% on the product’s social media platforms, placing emphasis on Facebook and Twitter. This will be accomplished by the end of the fourth quarter of 2016. Position Objectives Increase the brand’s position as number 5 in the food and beverage global industry, to number 2 by the end of the fourth business quarter of 2016.

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Marketing Communications Strategies and Tactics Strategy­ Develop a public relations campaign for Kraft macaroni and cheese. Tactics

­ Create a physical and digital newsletter for internal and external stakeholders of the brand, informing them of the product shift and giving them updates to the natural ingredient integration of the Kraft macaroni and cheese recipe.

­ Develop an effective crisis communication plan in response to negative feedback online, in­stores, or in various media, product recalls, product contamination, etc. The main idea of this crisis communication plan sees a “top­down” approach. Urgent claims and events affecting the entire brand shall be immediately addressed by the CEO of the brand. Avoiding a “no comment” pattern and being as transparent as possible to the public will build effective public relations. Negative online feedback will always be addressed by the social media management team to avoid a social media crisis. These communications shall be friendly, informative, and brief.

­ Write press releases informing external stakeholders of ingredient shifts. ­ Establish effective media relations with international, national, and local news

outlets. Strategy­ Develop an online and social media marketing campaign for Kraft macaroni and cheese. Tactics

­ Implement effective SEO tied to the product’s primary website page to include SEO terms such as “natural,” “organic,” “healthy,” and the names of the natural ingredients used in the product recipe. That way, even those not included in the target audience will pull up Kraft macaroni and cheese when they search for other products, or other competing brands, on SERPs.

­ Integrate a new hashtag theme into all existing social media platforms that focuses on building awareness of natural ingredient shift.

­ Engage with consumers through all social media platforms, responding to feedback and criticism professionally but promptly.

­ Increase website traffic by adding links of the principle website into social media content posts. Users will be inclined to click on the links and be directed to the main website to learn more about the product.

­ Recommending consumers post user­generated content in the form of creative videos discussing why they enjoy the natural ingredients Kraft is using in its macaroni and cheese. Each video should show the user enjoying the product, being appropriate, and using the following campaign hashtag: #noticethenatural

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­ Incorporate television ads of the campaign onto digital and social media platforms.

­ Create a Youtube series on the product’s Youtube channel that features the making of the product with the natural ingredients listed and showcase unique ways people can incorporate Kraft mac and cheese into healthier meals and lifestyles.

Strategy­ Develop an identity for Kraft macaroni and cheese that positions it as a product that uses natural and organic ingredients and is a dominant force in that market against its competitors. Tactics ­ Re­establishing packaging to incorporate “natural” colors such as cardboard brown and green with minimal use of traditional blue, red, and white colors. This will reflect the brand’s stance of using natural products while using the former brand colors rather minimally will remind consumers that the product is still the same Kraft macaroni and cheese that they know and love, just using wholesome and natural ingredients. ­ Create television and internet advertisements that raise awareness about the ingredient shift and the natural position that the brand is taking, while also implementing competitive advertising and mentioning competing brands that operate in the organic macaroni and cheese sector. ­Create an event hosted at grocery stores across the nation entitled “Notice the Natural” (#noticethenatural), that involves raising awareness of the new ingredients used in Kraft macaroni and cheese to consumers and having them blind taste the new product that contains natural ingredients, with the older product and an organic macaroni and cheese competing product. After the taste test, should a preference be selected, the consumer will learn that the macaroni they tried was the newest version of Kraft macaroni and cheese, reinforcing that while the change did not change the structure of the product, they are having a product that is better for them. ­Seek out testimonials from nutritionists, cow farmers, farmers who grow the wheat for the pasta, and developments where natural flavors are grown, and use these testimonials in advertisements across traditional and digital media. These testimonial advertisements will be as transparent as possible to consumers, informing them of how the macaroni and cheese is made with the help from credible agricultural sources. Strategy­ Develop a sales promotion campaign for Kraft macaroni and cheese and position the brand from number 5 in the global food and beverage industry to number 2. Tactics

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­Encourage retailers and grocery chains across the nation to commit to carrying redesigned boxes of the product featuring natural ingredients by brandishing early 2016 sales of the reformed product. ­Encourage promotions in stores that tie in with seasonal events. Since this campaign seeks to run near the end of the fourth business quarter of 2016, the brand could utilize promotions of the product that tie into themes around and capitalize off of football, Thanksgiving, Christmas, and winter break for students who will all need a healthy, nourishing bowl of macaroni and cheese during the colder months and those months where celebration and food meet. ­Send out coupons to target audience for them to buy the innovated product at a lower price to establish brand and product loyalty.

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Copy Platform/Creative Brief

Ad subject: Kraft macaroni and cheese Key fact: Kraft macaroni and cheese is viewed as a “junk” food and the recent ingredient shift to address this has some consumers that the product isn’t the same. Ad problem: Many consumers are not aware of the natural ingredients used in Kraft macaroni and cheese or the direction that the brand is moving towards in the natural and organic food sector. Product characteristics:

Uses natural ingredients No artificial colors Same flavor, but healthier Can be enjoyed with family or on the go Rooted in childhood tradition and healthier to eat than before.

Advertising objectives:Through the use of advertising, make 50% of the target audience of consumers on the product’s social media platforms aware of the new recipe, including the three principal natural ingredients, by the end of the fourth business quarter 2016. Target market: Target market includes parents, specifically mothers with buying power who are interested in knowing what ingredients are in the food that they are feeding to their children. They are females, 24­35. Also included in this audience are “free­from” consumers, those who want products free from artificial ingredients and colors. Competition: Organic macaroni and cheese brands such as Annie’s, Amy’s, Trader Joe’s branded macaroni and cheese, and White Wave Foods.

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1. Why are we advertising?­ Primary goal in advertising is to drive the new Kraft macaroni and cheese recipe as the new direction for the brand and position the product as a credible competitor in the organic and health food industry.

2. What’s the consumer problem that we’re trying to address?­ Kraft macaroni and cheese isn’t healthy to eat, even with its alleged natural ingredients. Kraft doesn’t taste the same as it once did. Comfort food isn’t good for you, therefore Kraft isn’t good for you.

3. Who are we talking to? ­ Our target audience includes parents, specifically mothers with buying power who are interested in knowing what ingredients are in the food that they are feeding to their children. They are females, 24­35. Also included in this audience are “free­from” consumers, those who want products free from artificial ingredients and colors. These consumers are rooted in the millennial generation, they grew up with Kraft products, but now they are placing heavy emphasis on their health and lifestyle choices. These consumers use interactive and digital media to engage with brands online so their feedback is crucial to the evaluation of the campaign.

4. Consumer Insights? Thoughts on the product are currently mixed. Reviews from Amazon show that critical comments are geared at the fact that the recipe of the product has changed and that it doesn’t taste the same. Other critical comments regard the nutritional value of the product. Positive comments on the product involve the flavor and texture of the product and that it has been a family favorite for years.

5. What does our consumer think now?­ Many consumers think that Kraft macaroni and cheese is an unhealthy product, while others want the product to stay exactly as it is because the former structure of the product was something that they had grown familiar with since childhood.

6. What do we want the consumer to think/feel/do? We want consumers to think the following: “I like the new Kraft recipe, I couldn’t tell the difference between this one and the older one. The new ingredients don’t make me feel as guilty eating mac and cheese, the meal I loved eating when I was a kid. I’m definitely going to have another bowl.” We want them to eat Kraft and not feel guilty about it because the recipe is natural and therefore buy more.

7. What should we tell them?: Kraft Mac and Cheese wants you to #noticethenatural, both in its new natural and organic ingredients and in its guilt­free taste that will let you go back to a time when being a kid was a lot less about reading over boxes and food labels and more about enjoying “cheesey goodness.”

8. Why should they believe us?­ Kraft has sold over 80 million units of the product featuring the new natural ingredients. Aside from leave a huge impression in the

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food and beverage sector with its natural mac and cheese, the mass number of units sold shows that consumers must have liked it enough, and kept liking it, to commit to purchase.

9. Brand Positioning statement­ “Kraft macaroni and cheese is using all natural ingredients in its recipe because we know that giving natural ingredients and a healthy option to your family, your friends, and your “on the go” is just as important as having a meal that is tasty, popular, and that has been on your shelf since you were a kid who was “on the go.”

10.Tone and Manner­ Credible, but not too serious. Relaxed and willing to incorporate a bit of warmth and humor. Genuine, authoritative, and knowledgeable.

11.Media Options­ The campaign will take advantage of implementing traditional broadcast advertising in television ads, digital ads on the product’s main website, social media content and posts, and direct mail in the form of promotions and coupons for the product.

12.Mandatories ­ New campaign hashtag, new campaign colors of “organic” brown and green.

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Print Ads

This ad re­establishes the blue and yellow color used by Kraft into more “natural” colors such as the dark green used in the background. Green is usually used to remind consumers that the product has natural ingredients and that it is healthy, but at the same time we use the Kraft logo to remind consumers that the product is still the same Kraft macaroni and cheese. The tagline ‘A treat can be healthy too!’ is to show consumers that it's a delicious treat but that doesn't mean it is considered junk food. The hashtag #noticethenatural is used to let customers know that ingredients have changed and the mac and cheese dinners now uses natural ingredients. Finally, the image chosen is to show the deliciousness and creaminess of the mac and cheese provided by Kraft.

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With this second print ad we wanted to raise awareness about the ingredient shift and the natural position that the brand is now taking. This can be seen because of the green field background with farm cows. This ad is comical, relevant and true to the mac and cheese brand. The cows and green field was chosen to give the feel of a more natural product being provided by only the best and natural ingredients. The image of the mac and cheese on a fork works because it is showing the consumer that the mac and cheese ingredients come from farms and cows. We decided to use the same tagline and hashtag as well as the logo for the same reasons discussed in the first print ad.

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TV Script Date: August 4, 2016 Company: Kraft Heinz TRT: 30 seconds Title: Kraft Macaroni and Cheese, “This Is.”

VIDEO AUDIO

­A pan overview of green, verdant acres of land, fresh soil and sunlight beaming all around. ­CUT TO a field of golden wheat, blowing in the wind, sun­kissed. ­CUT TO two female cows, white as snow, being milked by older farmhands in their 50’s. The short clip places emphasis on the two cows, staring off directly into the camera, while the farmhands are shielded by shadow or huge straw or rancher hats. ­CUT TO a pair of tanned hands, digging into a huge bag of spices, turmeric, annatto, and paprika. As the hands mill through the spices, the camera places emphasis on their movement and colors. ­CUT to three factory workers, all in their later ages, preferably 50’s, wearing baby bluish uniforms, headgear, and gloves, talking to each other, directly looking at

V.O of a young woman, preferably in her 30’s. Her tone is gentle, relaxed, and credible. ­This is the farm where the Kraft macaroni and cheese you know and love grows from. ­This is the wheat, growing taller every day, used to make the macaroni in Kraft mac and cheese. ­These are the cows that produce the natural cheeses used in Kraft macaroni and cheese. ­These are the natural spices, turmeric, annatto, and paprika, all used to naturally color Kraft macaroni and cheese. ­This Bob, JoAnne, and Mary, who have a fun time working to put all of these natural ingredients into one

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one another, laughing as they work, as if they were just done hearing a joke. ­TIGHT ON of the redesigned Kraft macaroni and cheese box, its structure is still the same, but the color of the box is a cardboard brown hue, with minimal elements of green. The logo of the brand remains the same, as does the type, with colors of red, white, and blue. ­CUT TO a family eating dinner in their kitchen, passing Kraft macaroni and cheese to one another, laughing, talking about their day. ­CUT TO a young male, 18­24, wearing glasses, studying in his college dorm, eating a bowl of Kraft macaroni and cheese, while gazing at his computer screen at a desk, doing homework. ­CUT TO a mother and daughter in a grocery store in an aisle where Kraft macaroni and cheese is positioned. The daughter, aged 3­7, points to something high in the aisle that she can’t reach. The mother grabs a box of Kraft macaroni and cheese and glances over it but appears to be impressed with the natural ingredients she sees on the Nutrition Facts label. She passes the redesigned box to her daughter’s hands, with a TIGHT ON the box and Kraft logo. The daughter then smiles and places it in her toy shopping cart. ­PULL BACK to see the mother and

magical box. ­TIGHT ON shot of newly designed Kraft macaroni and cheese box. ­This is enjoyment of each other’s company. ­This is where things get a little bit easier. ­This is where it all begins.

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daughter walking out of the aisle. The Kraft logo appears on the screen with the type head with the hashtag #NOTICETHENATURAL

­Kraft macaroni and cheese. Notice the natural.

Sample television advertisement script for the Kraft macaroni and cheese #noticethenatural campaign.

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Commercial Storyboard

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Public Relations Press Release FOR IMMEDIATE RELEASE Media Contacts: Client’s Angels Loyola University Chicago [email protected]

Kraft Macaroni and Cheese To Become Natural and Organic Food Brand

Food Brand Giant To Head Into New Direction; Offers Full Transparency Among Consumers

CHICAGO, August 4, 2016— Food brand giant Kraft Macaroni and Cheese is planning to renovate its brand by entering into a new market: the natural and organic food industry. Kraft announced that it would be pushing into the market near the end of 2016, with the help of advertising agency, Client’s Angels. “We are excited to branch into a new market, while also serving our principle consumers,” said Kraft Senior Vice President of Marketing, Chris Kempczinki. “Kraft understands that our consumers want to enjoy the Kraft macaroni and cheese that they’ve known and love, but they also want to know where their food is coming from, what is in it, and how it will better serve their lifestyles. We definitely think this is the right decision.” The new push was initiated in late 2015, when Kraft introduced natural ingredients to replace its artificial coloring, all the while without letting consumers overtly know as to not change perception of the brand. Currently, Kraft tapped Chicago based advertising agency, Client’s Angels, in an effort to spread the news to the majority of its consumers through advertisements and promotional efforts and let them know that the ingredient change is only the beginning of Kraft’s plan to launch into the organic food sector through an integrated marketing campaign entitled #noticethenatural. Kraft hopes to acquire repeated success through the implementation of new ads that will raise consumers’ awareness of the brand’s decision to lean on natural ingredients in its macaroni and cheese. In early 2016, 80 million units of the natural Kraft macaroni

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and cheese were sold. Through the help of Client’s Angels, Kraft hopes to sell 5% more units of the product, which includes a redesigned look for the box and accompanying digital and social media advertisements. “Kraft believes that Client’s Angels will do an exceptional job in launching us into this new direction and market,” said Kempczinki. “We believe that not only will consumers love our macaroni and cheese, as they always have, but we’ll leave our signature mark on the organic food market.” To learn more about Kraft macaroni and cheese, please visit: http://www.kraftmacandcheese.com/ About Kraft Foods Group Kraft Foods Group is one of North America's largest consumer packaged food and beverage companies, with annual revenues of more than $18 billion. The company's iconic brands include Kraft , Capri Sun , JELL­O , Kool­Aid , Lunchables , Maxwell House , Oscar Mayer , Philadelphia , Planters and Velveeta. Kraft's 22,000 employees in the U.S. and Canada have a passion for making the foods and beverages people love. Kraft is a member of the Standard & Poor's 500 and the NASDAQ­100 indices. For more information about Kraft, visit www.kraftfoodsgroup.com and www.facebook.com/kraft. Sample press release for Kraft macaroni and cheese.

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Social Media Samples

Sample Facebook post for Kraft macaroni and cheese #noticethenatural campaign. This post was generated from prankmenot.com

Sample Facebook post for Kraft macaroni and cheese #noticethenatural campaign. This post was generated from prankmenot.com

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Sample Twitter post for Kraft macaroni and cheese #noticethenatural campaign. This post was generated from prankmenot.com

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Redesigned Box

Rough and primary visual draft for redesigned box. Notice the colors are predominately an “organic” brown and green, with an emphasis on the natural spices and ingredients found in the renovated product. This can be subbed for any image that places emphasis on natural ingredients.

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IMC Strategy Through the use of television advertisements that will be broadcast on network and cable television stations, social media updates and content creation, direct mail, digital monitoring on the product’s website, the creation of stylized print ads, and placing an emphasis on creating unique promotions, retail experiences, and coupons to push sales, this campaign will raise awareness of Kraft’s mission to guide the brand into the organic and natural food market and create a unified, consistent approach in all media forms to share with consumers that the shift is credible, transparent, and constructed as a response to what they want out of Kraft macaroni and cheese. Media Mix Recommendations and Rationale Client’s Angels understands that due to the timeframe of the campaign operating throughout the fourth business quarter of 2016, the types of media and media vehicles being used for the campaign need to be able to reach Kraft’s targeted audience with minimal waste coverage, as well as through a cost­effective and responsible way. Scheduling Pattern Because the brand and product are already a dominant force in the food and beverage industry, we argue that the pulsing method should be utilized. We don’t want the target audience to get worn out from the messaging that we create, but we do want to raise awareness of the direction that the brand is shifting towards. More so, because the product is rooted in the food and beverage industry, Client’s Angels has determined that there may be more opportune times for the promotional scheduling of the product to be amped up. Since the campaign will be operating during the fourth business quarter of 2016, advertising will be consistent throughout the four months, but will be heavily disseminated throughout November and December, when holidays such as

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Thanksgiving and Christmas see consumers traveling to grocery stores more often to buy food for family meals. Macaroni and cheese is a staple food for these holidays and as such, the product should be promoted frequently during these holiday times. Client’s Angels understands that Kraft has been serving its consumers for over 75 years. The brand is prominent and established in the food and beverage industry. Because of this, Client’s Angels recommends that Kraft pay more attention to the frequency of their messaging as opposed to the reach of their message. While it is important to reach as many people as possible within the target audience, the brand is not a new brand so it does not need a very high level of reach, since most consumers know of Kraft macaroni and cheese. Frequency objectives Client’s Angels wants the target audience to be aware of the ingredient shift in the macaroni and cheese product that they are consuming. If they are aware of this shift, Kraft stands a better chance of being a credible, strong competing force in the organic and natural food market. In order for consumers to be aware of the shift, the message of the shift needs to be viewed multiple times over the timeframe of the campaign. Our frequency objective is to produce one principle television advertisement that is shown throughout the fourth business quarter of 2016, amped up during holidays, reaching 30% of the intended target audience through 11 exposures through regular circulation on network and cable television channels. We know that our target audience interacts with television, but we also know that many millennials are using their mobile and internet devices to interact with brands. Client’s Angels also intends to raise awareness through digital and online mediums, which is why a lower percentage needs to be reached via television broadcast channels. For the print advertisements that Client’s Angels has crafted, we understand that placing these ads in newspapers, magazines, and other publications will result in high coverage of the message that we have crafted, more so these print ads can be accompanied by coupons for the product and wearout will be avoided because the consumer will be in control of the amount of exposure as a reader. To mitigate issues of clutter and short life of messages in prints, we’ve crafted the objective to reach at least 20% of our target audience through print ads through the fourth business quarter of 2016. Committing to a frequency of having a print ad in a publication every two months over the four month period, Kraft will find success in having the awareness of the ingredient shift raised. Selective partnerships with culinary magazines, as well as popular publications, will ensure that we reach the correct target audience, while

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strategic positioning of print ads in any publications before they are ran will solve the constant issue of clutter. In regards to the digital and social media channels we will use to raise awareness of the product and brand shift, our objective is to reach 50% of the target audience through these platforms over the fourth business quarter of 2016 through creative and streamlined digital content and advertisements, with similar spikes occurring during the holiday season as well. These objectives can be evaluated to measure their effectiveness through two ways: online surveys that provide questions related to awareness on the product’s social media platforms, and direct polls available to consumers via representatives in grocery stores across the nation during the end of the fourth quarter of 2016. Incentives, in the form of discounted rates or free samples on the product, will be given to consumers in grocery stores for taking the time to complete a brief poll regarding if they are more aware of the product and brand shift via the advertisements on television Cost­per­thousand (CPM) Because we intend to use digital and social media to advertise and promote the new healthy and natural Kraft mac and cheese, cost­per­thousand proves to be needed in this campaign. The digital/social media aspect of our budget is calculated through CPM. For this campaign we are using Facebook, Twitter, Youtube and Instagram. Our goal is to get 4,000 impressions (when an ad is fetched from its source) per day for each social media medium. The following are our calculations: Facebook: the average CPM for the food and beverage industry is $0.66, which means that we will pay $0.66 for every 1,000 impressions of the ad. We want 4,000 impressions per day, so we calculate: 4 X $0.66 = $2.64 per day X 30 = $79.2 per month X 4 = $316.80 for the four months of the campaign. Twitter: the average CPM for a promoted tweet is $6.32, so we calculate: 4 X $6.32 = $25.28 per day X 30 = $758.4 per month X 4 = $3,033.6 for the four months of the campaign. Youtube: the average CPM for placing a video ad on youtube is $7.60, so we calculate: 4 X $7.60 = $30.4 per day X 30 = $912 per month X 4 = $3,648 for the four months of the campaign. Instagram: the average CPM for ads on instagram is $6.58, so we calculate: 4 X $6.58 = $26.32 per day X 30 = $789.6 per month X 4 = $3,158.4 for the four months of the campaign.

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This flowchart displays all of the recommended media activities that Clients Angels suggests to Kraft Mac and Cheese in the fourth business quarter of 2016.

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The table above shows the total cost for each medium used in the IMC campaign for Kraft’s mac and cheese dinner. Each cost was calculated with real numbers (explained in the justification column), which led to the total budget for the campaign being $665,632.

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Advertising Recommendations Objective: Our principle objective for the advertising sector of the IMC plan is to raise awareness of the brand’s natural ingredient shift by 50% and uphold the brand’s image as popular but healthy. Audience: The audience affected by this objective includes consumers of the product and millennials within the target group. Timing: Divided based on the type of advertising. Broadcast ads will run from September through November, print ads in magazines from October to November, and print ads in newspapers divided to run in September and December. Tools/Media: television, print in newspapers, and magazines. Budget: $472,475 Rationale: National commercial that will run in two TV stations = Food network (chopped: 9pm) $84,475 and NBC (Sunday Night Football: 8pm) $350,000. Print ad in national magazines on a full page (7.45w x 9.3h) in color, running monthly for two months is $20,000 and a print ad that run in weekly news publications for two months, covering three columns in width and is five inches long (15 column inches) in color is $18,000. Digital/Social Media Recommendations Objective: Engage with 90% of the product’s Facebook and Twitter followers while also increasing social media followings by 10%. Raise awareness of the brand’s ingredient shift and increase direct traffic to the principle website by 10%. Increase social media engagements (follows, “likes,” reblogs, etc.) by 10%. Audience: Followers of the brand on its social media platforms and the ideal target audience that has not engaged with the brand currently on its social media. Timing: Ongoing over the fourth quarter of 2016.

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Tools/Media: The product’s Facebook, Twitter, Youtube, and Instagram platforms. Budget: $10,157 Rationale: Calculated by using Cost­per­thousand (pay a certain amount for every 1,000 impressions of the ad) and our goal is to get 4,000 impressions per day for each social media medium. Public Relations Recommendations Objective: The primary objective for the public relations sector of this IMC plan is to inform stakeholders, in depth, of the natural ingredients found in the product and the reasoning behind the ingredient shift. Doing so will occur through established media relations, as information will be disseminated through these channels. We intend to see a 15% rise in discussions in the media (press releases, articles, news coverage) regarding the ingredient shift over the the course of the fourth quarter of 2016. Audience: Stakeholders who are already invested in the brand and shareholders who are invested in the product. Timing: Early in the campaign, preferably from September through the end of October. The ideal timing of this objective coincides with the implementation and execution of the advertising objectives. Tools/Media: Coverage through major and international news media, local and city outlets, articles in national newspapers, articles in business and economic publications. Budget: $20,000 Rationale: We are going to hire a PR agency to take care of the coverage and public releases of the campaign. It costs $10,000/month to hire a PR agency so we calculated $10,000 x 2 months.

Sales Promotion Recommendations Objective: By using the marketing mix tools (place, promotion, product, and price), an objective will be established to increase sales by 5% by the end of the fourth quarter of 2016. Audience: Millennials, parents, “free­from” consumers, and others that fall within the target audience. Timing: The objective will be implemented and executed over the end of the fourth business quarter of 2016. Coupons should be distributed from October to December, direct mail will be implemented from November to December, and sweepstakes will occur over October. Tools: coupons, direct mail, and sweepstakes. Budget: $33,000 Rationale: The coupons will cost $12,000 calculated for customers to save $0.50 from original kraft mac and cheese box price, the direct mail costs $15,000 because each mail costs $1.50

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and we want to send it to 10,000 households. Lastly, the sweepstakes will be $6,000 and will be used for giveaways and contests during one month of the campaign. Direct Marketing Recommendations Objective: This objective not only seeks to maintain a direct connection with the target audience and raising brand advocates for the new ingredient shift by 15%, but also seeks to gain an increase in direct website visits by 10% over the fourth quarter of 2016. Audience: The target audience determined by the campaign. Timing: Ongoing, but specifically measured during the remainder of 2016. Tools: Direct mail and physical and digital outreach to consumers in stores and online. Budget: $130,000 Rationale: The physical outreach to consumers will be in stores specifically in grocery carts advertising, which costs $1,000 per month for one store. We calculated 30 stores around the Country for 4 months. The digital outreach is $10,000 to hire a professional for website redesign and development.

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The campaign flowchart lists all of the activities and events that will occur for the four month period of the campaign. On the left are the major activities/events and on the right there are specifics of each, such as TV stations, magazine and newspaper names, etc.

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Recap of Campaign Objectives

1. Increase early 2016 sales of 80 million units by 5% by the end of the fourth quarter of 2016.

2. Increase brand sales from 6.9 billion by 5% by the end of the fourth quarter of 2016.

3. Make 50% of the target audience of consumers on the product’s social media platforms aware of the new recipe, including the three principal natural ingredients, by the end of 2016.

4. Increase the position of the brand in the global food and beverage industry from 5 to 2.

5. Increase the number of likes and followers by 10% on the product’s social media platforms, placing emphasis on Facebook and Twitter. This will be accomplished by the end of the fourth quarter of 2016.

6. Increase the percentage of direct website traffic by 10% by the end of the fourth quarter of 2016.

7. Increase monthly media coverage of new ingredient recipe and brand direction for Kraft macaroni and cheese by 15%.

8. Engage with 90% of the product’s social media followers on Facebook, Twitter, Instagram, and Youtube.

Quantifiable Evaluation In this IMC campaign, measurable objectives were important to Client’s Angels, as we knew that our measurable objectives would allow Kraft to evaluate the work that we’ve accomplished for their macaroni and cheese product. The first and second objectives of this campaign are easy to evaluate, as the number of units sold of the new product can

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be monitored and the sales of the Kraft brand can be tracked, specifically the amount of money that is generated from the selling of the macaroni and cheese product, which numbers can be pulled from grocery stores, restaurants, convenience stores, and monthly reports. Data of the number of units sold and the amount of money generated from sales should be reported every three to six months, preferably all data in relation to the number of sales should be collected before the end of the fourth quarter of 2016 to show results. Once data is generated, Client’s Angels suggest that Kraft use their sales metrics to determine their position in the global food and beverage industry to determine if they have risen from their spot as number 5 to number 2 by the end of 2016. Awareness Level Evaluation The awareness level objectives of this campaign can be evaluated through survey polls. To reduce the cost of issuing surveys, Client’s Angels recommends that the brand issue these surveys on their social media platforms for free, primarily through polls on Facebook and Twitter. Through this medium, the number of Facebook and Twitter followers can be established and through the use of these polls, their knowledge of the product’s ingredients can be tested to determine if consumers are aware of the natural ingredients being used in the product. To measure those consumers who do not frequently use social media, Client’s Angels suggests that direct mail surveys be implemented and used to supplement social media polls. Through this medium, consumers will be sent surveys to their homes or places of work, as well as through email, and will be able to answer questions of awareness at their discretion. Not only is this another affordable method for the brand to use, but Client’s Angels, in an attempt to mitigate low response rates and follow up times, suggests that Kraft utilize concise questions, simple instructions, reduce perceived costs of return mail, use branded stationery to increase credibility and trust, as well as increasing the reward for filling out the response (be it in the form of an additional coupon for the product or interesting questions). Media Coverage Evaluation Through the use of web analytics tools such as Google Alerts, Kraft will be able to track extensive coverage in the form of articles, blog entries, and social media posts regarding the product shift into the organic food sector. In terms of print media and articles in newspapers and journals, Kraft will be able to evaluate increased media coverage by clipping articles from online, and in national and international newspapers. Tracking and clipping will also be utilized through video clips from national and international media coverage on news programs and talk shows.

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Online Evaluation Through the use of Google Analytics, Kraft will be able to see how much traffic and interaction is being directed towards the product’s main website. Also, the Google Analytics tool will be able to determine the number of users being referred to the website through the product’s social media platforms. Data on direct website traffic should be displayed right before the end of the fourth business quarter of 2016 to measure online objectives. In terms of tracking the increase of “likes” and followers of the brand product and engagement with consumers on social media platforms, this can be done daily by the Kraft team. Client’s Angels recommends monitoring the number of preferences that the brand receives every day on its social media platforms. Be it in the form of likes on Facebook, mentions and reblogs on Twitter, likes on Instagram, and shares from Youtube, these should be consistently monitored and compared near the end of the fourth quarter of 2016. Content should be updated consistently on the product’s social media pages, either in the form of digital content in the form of advertisements on Facebook, recipe and informational advertisements on Youtube, or photos of the product on Instagram.

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The budget for this IMC plan was determined by setting objectives. After our objectives were set we looked at what tasks were required in order to meet our overall objectives and with those tasks in mind we estimated what it would cost to complete each task. The budget includes all expenses in regards to the following media: television, print ads (newspapers and magazines), Digital/social media (Facebook, Twitter, Youtube, Instagram), Public Relations, Sales Promotion (coupons, direct mail, sweepstakes) and Direct Marketing (physical and digital outreach). Kraft’s Mac and Cheese Dinner 2016 marketing communications budget is $665,632. A detailed budget breakdown can be found in page 51 of this report.

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Kraft macaroni and cheese has been a staple in the American pantry for over 75 years. Kraft’s mission in delivering quality ingredients to its consumers resulted in, as Kraft would claim, “the world’s largest blind taste test” in early 2016 when the brand quietly pushed macaroni and cheese boxes with new, natural ingredients onto grocery shelves across the nation. Kraft’s reasoning behind the hushed push intended to not change perceptions of taste and preference on the product. However, Kraft’s goal of making a natural product for an audience that demands natural and satisfying food is in vain if consumers are not aware of the positive changes that Kraft has made to its popular product, as well as the direction the brand is shifting towards as a whole. Lack of appropriate media coverage on the ingredient shift, negative brand image of the product as a “junk food,” lack of awareness of the natural ingredients used in the product by consumers, and decreasing sales of boxed prepared foods that could potentially affect the brand in the future are all pertinent issues that the brand faces. This IMC provides Kraft with the most effective objectives, strategies, and tactics to best address these problems. Guided by a set budget of $665,632, the main objectives, strategies, and supporting tactics of this campaign are ensured to offer success. The marketing goals of this campaign seek to increase sales from 80 million units by 5%, raise overall brand sales of $6.9 billion by 5%, and see that the position of the brand in the food and beverage world rises from 5 to 2. Communication objectives are established to support these marketing goals include helping consumers become aware of the brand and product shift to using natural ingredients by 50% and seeing that the product’s social media platforms increase the number of followers, reblogs, retweets, and “likes” by 10%, all over the course of the fourth business quarter of 2016.

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With the strategies in mind to create a transparent and strong public relations campaign, digital and social media initiatives, credible yet creative advertising, and a sales promotion plan that will help increase sales and build awareness amongst consumers, Client’s Angels believes that this is the most effective IMC campaign for Kraft. Implementing this plan will allow Kraft to continue to be a dominant brand in the food and beverage market, with a higher position than it once had. More so, the plan will allow Kraft to focus on its top priority: its consumers. By engaging with consumers online, giving consumers the natural ingredients that they want to see in the foods that they eat, and making them aware of their moves as a brand, Kraft will be able to be seen as a credible and transparent brand in the food and beverage industry and will be able to strongly compete with competitors in the natural and organic market that it can possibly dominate, all through the use of one of its most key, popular products. Client’s Angels openly welcomes Kraft as a partner on their journey into launching into a prospective market and continuing to give their consumers what they want the most: a healthy and tasty meal.

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Competitor Advertisements

A side by side print advertisement comparison regarding Kraft’s older advertisements focusing on its ingredient shift and its top competitor in the natural and organic food market, Annie’s Mac & Cheese. Notice Annie’s emphasis on “real” ingredients and how it distinguishes itself as a brand and product from Kraft’s earlier advertisements.

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Sample Survey for Target Audience

This sample survey can be used, modified, or developed for Kraft’s evaluation of how aware its consumers are of its ingredient and brand shift at the conclusion of this campaign. This survey can be distributed online, through social media, or directly to consumers.

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"A Platform for Performance." The Kraft Heinz Company . Web. 10 Aug. 2016. "Annual Reports." The Kraft Heinz Company. Web. 10 Aug. 2016. Baertlein, Lisa. "Kraft Challenged by Healthier Macaroni and Cheese Brands." Reuters. Thomson Reuters, 30 Mar. 2014. Web. 05 Aug. 2016. Bariso, Justin. “How Kraft Used Psychology to Make Its Mac and Cheese Go Viral.” Inc.com. Web. 21 Mar. 2016. Bazilian, Emma. "CPG, Food: Kraft Macaroni & Cheese SVP Chris Kempczinski." AdWeek . Web. 27 Oct. 2011. Forbes . Forbes Magazine, n.d. Web. 10 Aug. 2016. Foster, Kim. "Why You Should Never Make Box Macaroni & Cheese Again: A Manifesto ­ Imperfect Parent." Imperfect Parent . 2008. Web. 10 Aug. 2016. "Frozen Foods Consultative Group." Nature 162.4118 (1948): 522. Kraft Foods Group. Cagny Conference, 18 Feb. 2014. Web. 27 July 2016. Gelski, Jeff. "Mac and Cheese Moves to Forefront of 'free­from' Trend." Food and Beverage News, Trends, Ingredient Technologies and Commodity Markets Analysis . 24 May 2016. Web. 10 Aug. 2016. http://image.slidesharecdn.com/kraftanalysis­141213215920­conversion­gate01/95/kraft­analysis­13­638.jpg?cb=1418508053

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https://tippie.uiowa.edu/krause/spring2015/krft_sp15.pdf Kim, Susanna. "Sales of Kraft's Mac and Cheese Hit 80M After Ingredient Change, Customers 'Didn't Notice' Company Says." ABC News . ABC News Network, 21 Mar. 2016. Web. 10 Aug. 2016. http://www.kraftmacandcheese.com/ "Kraft Macaroni & Cheese Consumer Insights and Demographics | InfoScout.co." Infoscout.co. N.p., n.d. Web. 27 July 2016. "Kraft Macaroni & Cheese: A History." Tribunedigital­chicagotribune. N.p., 14 Aug. 2015. Web. 27 July 2016. Magwood, Johnny D., Dr. "Kraft Foods Inc. – Marketing and Managing the Customer Relationship ." Customer Think. N.p., 27 June 2015. Web. 05 Aug. 2016. "Market Position and Strategy for KRAFT FOODS INC." UKEssays. N.p., 23 Mar. 2015. Web. 26 July 2016. "Organic Market Analysis." Home . Web. 10 Aug. 2016. "Sales of Kraft's Mac and Cheese Hit 80M After Ingredient Change." ­ Honolulu, Hawaii News and Weather . 21 Mar. 2016. Web. 10 Aug. 2016. Tascarella, Patty. "Kraft Heinz Hoping New Mac & Cheese Recipe Means More Sales, Market Share." Widgets RSS . 08 Apr. 2016. Web. 10 Aug. 2016. Tuttle, Brad. "5 Amazing Facts About Kraft Macaroni and Cheese and Heinz Ketchup." Time. Time, 26 Mar. 2015. Web. 26 July 2016. Wohl, Jessica. "Kraft Heinz Plans To Boost Working Media by $50 Million." Advertising Age CMO Strategy RSS . N.p., 26 Feb. 2016. Web. 10 Aug. 2016.

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