Lucky # SlevinAbby Schaller

Dan Smith Jared Simon

Jennifer Sherman

Kellogg Co. is hoping to steer consumers in the direction of products that are easier to produce at a cheaper production cost. ◦ -Corn Flakes◦ -Rice Krispies

•Campbell Soup Co. is going to start a multimedia campaign to magnify its condensed soups at a bargain price.•Kraft’s food is also stepping up its advertising for Kool-Aid and is marketing its products through commercials on the radio for the first time in 11 years.

Kraft and Campbells’ goal is to show ways to make families get the best use of their dollar.

Another goal is to promote soup and grilled cheese sandwiches.

Coupons for Campbell’s soups and sandwiches made with Kraft Singles cheese will be available in newspapers nationwide.

“Wallet-friendly meal your family will love!”

For many years, food makers have tried to increase profit margins.

Lower priced-high margin products are now being emphasized over high priced, “Premium” products.

The Milk Industry is launching advertisements emphasizing milks bargain value.

“A glass of milk only costs about a quarter…” is a new ad for the Got Milk campaigns

This company has not advertised their Banquet-Style frozen dinners in more than a decade.

They are going to raise their price .41 in order to make a higher profit margin.

The dinners are raised to $1.50 from $1.09. Healthy Choice dinners are double the price

of ConAgra meals. “So good for so little”

Gas prices and heating bills are the cause of less trips to the supermarket.

Food companies have been purchasing cheaper ingredients and shrinking packages to increase their profit (giving us less for same price).

Price for food has risen 7.5% at a seasonally adjusted rate.

Consumers have taken the route of buying private label products for less.

Some people don’t care about the price, they will still buy high quality food for a high price.

Companies such as Sara Lee and H.J. Heinz will continue to sell their products at the same price because their brands have always stood for good value.

Campbell Soup will air TV, radio, and Internet ads to show its condensed soups as “cheap eats”

Last year, they emphasized the soups’ quality over quantity.

Their ad will show a lineup of five condensed soups, saying it is the “original dollar menu.”

This year they are selling higher quantities at one time at a more affordable cost (10 cans for $10)

Kellogg is now working on search engine optimization, so when customers search words such as “cereal” and “deals”, or “value” Kellogg appears first.

On the Campbell website, they are now offering recipes for meals that cost under $10 using their products.

In one Kraft commercial, they have showed how one bag of Kraft products can be spread into making five meals.

A TV commercial advertising Kool-Aid tells consumers that 4 pitchers of Kool-Aid costs the same as 2 liters of soda.

Companies are going to make higher profits

People will get more quantity for their money

With the economy in a recession, it is more likely that consumers will spend money on high quantity products.

With the use of lower quality ingredients, it may reduce the health of consumers.

Lower quality could lead to customer dissatisfaction.

Consumers concerned with nutrition may be turned off by the advertisements and be forced to buy different products.

Large food corporations are pushing their consumers in the direction of low cost foods.

Quantity is now the direction advertisers are taking over quality and nutrition.

Companies whose products have been based on quality in the past, such as Banquet-Style meals, are now advertising on TV to get ahead of the competition.