This presentation was the culmination of a 3 month long team effort. It is the result of extensive research, discovery and creativity. It was presented in March of 2008, in Marketing Behaviors class.
3. History of Peanut Butter 1890 1903 1920 1923 1950 Anonymous St. Louis Doctor developed peanut “butter” for his patients Ambrose Straub patented a machine to make peanut butter Joesph Rosefield found the proper combination of stabilizers and sugar was discovered Rosefield prevented oil separation Food and Drug Administration put regulation on “Peanut Butter”
4. History of Company 1955 1958 1960 1972 2002 P&G purchased the W.T. Young Company Jif was introduced by P&G P&G launched “Choosy Moms Chose Jif” Kids raised on Jif preferred a more sophisticated taste The J.M. Smucker Company acquired Jif
5. Jif Peanut Butter Line Creamy To Go Simply Creamy Crunchy Honey Reduced Fat
6. Direct Competitors Rosefield’s own brand of peanut butter Trademark for peanut butter Unilever Foods currently owns this brand Rosefield licensed his invention to the Pond Company The Pond Company created Peter Pan ConAgra Foods currently owns this brand The J.M. Smucker Company created organic to reach other target markets Offers an unprocessed peanut taste
33. Actualizers Self-Confident.Enjoy the “finer things.”Receptive to new products and technologies. Skeptical of advertising. Frequent readers of a wide variety of magazines. Fufilleds Value knowledge. Little interest in image or prestige. Like educational and public affairs programming. Read widely and often. Achievers Image-conscious. Relatively affluent. Attracted to premium products. Average TV watchers. Experiencers Action-oriented. Follow fashion and fads. Spend much of disposable income on socializing. Buy on impulse. Listen to rock music. Grade School Greta & Gary Jr. College Carl & Carol Start-Up Steve Choosy Mom Chelsea Retired Rick & Rita High Resources Principle Oriented Status Oriented Action Oriented VALS 2™ NETWORK LIFE STYLE (PSYCHOGRAPHIC) SEGMENTATION
34. Believers Traditional. Family Oriented. Buy American. Slow to change habits. Look for bargains. Watch TV more than average. Strivers Image-conscious. Limited discretionary incomes, but carry credit balances. Spend on clothing and personal-care products. Prefer TV to reading. Makers Self-sufficient, hands on. Shop for comfort, durability, value. Unimpressed by luxuries. Read auto, home mechanics, fishing magazines. Strugglers Restricted consumption. Concerned with security and safety. Brand loyal. Trust advertising. Watch TV often. Low Resources Grade School Greta & Gary Jr. College Carl & Carol Start-Up Steve Choosy Mom Chelsea Retired Rick & Rita
35. Prizm Cluster Profiles Quintile 1 Quintile 2 Quintile 3 Quintile 4 Quintile 5 Blue Blood Estates God's Country The Cosmopolitans Simple Pleasures Young & Rustic Winners Circle Suburban Sprawl Middleburg Managers Domestic Duos Mobility Blues Urban Coast Mayberry-ville Traditional Times Close-in Couples Crossroads Villagers Country Squires Young Digerati Young Influentials Sunset City Blues Family thrifts Money & Brains Bohemian Mix Greenbelt Sport Heartlanders Bedrock America Upper Crust Upward Bound Up-and-Comers Shotguns & Pickups Big City Blues Big Fish, Small Pond Beltway Boomers Urban Achievers Suburban Pioneers Low-Rise Living Movers and Shakers Kids & Cul-de-Sacs Boomtown Singles Multi-Culti Mosaic Golden Ponds Second City Elite Fast-Track Families New Homesteaders Old glories Old Milltowns Executive Suites American Dreams Big Sky Families American Classics Back Country Folks Brite Lites, Little City New Empty Nests White Picket Fences Red, White & Blues Urban Elders Home Sweet City Pools & Patios Blue-chip Blues New Beginnings Park Bench Seniors Gray Power Kid Country USA Blue Highways City Roots City Startups Hometown Retired
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41. JIF Skippy Smucker’s Peter Pan Product Positioning Map Quality High Quality Low Variety Low Variety High
42. Consumer Benefit Segmentation Popular Peanut Butter Spread Benefits Offered by Brand Brand Taste Quality Price Health Benefits Variety Jif 2 1 2 3 1 Skippy 1 2 3 2 2 Peter Pan 3 4 1 4 4 Smucker's 4 3 4 1 3
43. Consumer Benefit Segmentation Popular Peanut Butter Spreads Benefits Sought by Market Segment Market Segment Taste Quality Price Health Benefits Variety Grade School Greta & Gary Jr 1 3 5 4 2 College Carl & Carol 2 3 1 4 5 Start Up Steve 2 3 1 5 4 Choosy Mom Chelsea 2 1 5 3 4 Retired Rick & Rita 3 1 4 2 5
46. The Benefit Chain Popular Peanut Butter Spreads Choosy Mom Chelsea The Product Functional Benefit Practical Benefit Emotional Payoff A good tasting food that I buy for my family A high quality peanut butter I ate as a child; so I feel safe giving my children People will know I go all out for my family and provide them the best quality products Buying Jif will enhance my self esteem and confirm my belief that I am a good mother
47. Market Segment Overlap Popular Peanut Butter Spreads College Carl and Carol Grade School Greta and Gary Jr. Choosy Mom Chelsea Start Up Steve Retired Rick and Rita
48. Peanut Butter Benefit Segmentation Great Taste Expects a PB & J Sandwich in their school lunch Active “ Life’s a garden, dig it.” Grade School Greta & Gary Jr. Principle Benefit Sought Special Behavioral Characteristics Life’s Motto Life Style Characteristics
49. Peanut Butter Benefit Segmentation Inexpensive Wants a quick snack when there is not much time to cook “ Work hard, play hard.” College Carl & Carol Principle Benefit Sought Special Behavioral Characteristics Life’s Motto Personality Characteristics High Sociability
50. Peanut Butter Benefit Segmentation Inexpensive “ When life gives you lemons, make lemonade.” Start Up Steve Principle Benefit Sought Special Behavioral Characteristics Life’s Motto Personality Characteristics Makes quick meals that the child will love High Autonomy
51. Peanut Butter Benefit Segmentation Enjoys the traditional peanut butter they had growing up High Quality Content “ Live each day like it’s your last” Retired Rick & Rita Principle Benefit Sought Special Behavioral Characteristics Life’s Motto Personality Characteristics
52. Peanut Butter Benefit Segmentation Principle Benefit Sought Demographic Strengths Brands Disproportionately Favored Life Style Characteristics Quality Mothers, Families Medium User Jif, Skippy, Smucker’s Family Oriented Value-oriented “ Family first.” Choosy Mom Chelsea Special Behavioral Characteristics Personality Characteristics Life’s Motto
53. Total Market (ages 18-80): 68,576,480 people Size of each market segment for peanut butter: Choosy Mom Chelsea 31% College Carl & Carol 17% Start Up Steve 25% Retired Rick & Rita 27% TOTAL 100% Market Size and Sales Potential
54. Target Market : “ Choosy Mom Chelsea ” = 21,463,566 Brand : Jif Peanut Butter Non-Users : 15% = 3,219,535 Non-users of peanut butter Heavy Users : 10% = 5,365,892 .30533 Jif Market Share (30.533%) x 1,663,426 Heavy User Total x 42 Ounces consumed per month x $.109 Price per ounce x 12 Months per year $91,381,970.74 Dollar sales per year Market Size and Sales Potential
55. Medium Users : 49% = 8,585,426 .30533 Jif Market Share (30.533%) x 2,661,482 Medium User Total x 24 Ounces consumed per month x $.109 Price per ounce x 12 Months per year $83,549,242.94 Dollar sales per year Light Users : 29% = 4,292,713 .30533 Jif Market Share (30.533%) x 1,330,741 Light User Total x 10 Ounces consumed per month x $.109 Price per ounce x 12 Months per year $17,406,092.28 Dollar sales per year Market Size and Sales Potential
56. Heavy Users: $ 91,381,970.74 Medium Users: 83,549,242.94 Light Users: 17,406,092.28 TOTAL $192,337,305.96 Sales Potential for Choosy Mom Chelsea
