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University of Michigan Dearborn_Full Written Case
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2. Ice Breakers Cool Blasts Chewable Mints
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Contents
Executive Summary......................................................................................................................................3
Overview.......................................................................................................................................................4
Target Market...............................................................................................................................................5
Primary Research .........................................................................................................................................6
Ethnographies...........................................................................................................................................6
Surveys......................................................................................................................................................6
Focus Groups ............................................................................................................................................8
Segments ......................................................................................................................................................9
Targeting.....................................................................................................................................................10
Positioning..................................................................................................................................................10
Value Propositions .................................................................................................................................11
Product .......................................................................................................................................................11
Price ............................................................................................................................................................12
Place............................................................................................................................................................12
Promotions.................................................................................................................................................13
Cool Blasts Coffee Promotion ................................................................................................................13
Cool Blasts Pizza Promotion...................................................................................................................14
Cool Blasts Text Book Promotion ..........................................................................................................14
Timeline of Events......................................................................................................................................15
Financials ....................................................................................................................................................16
Appendix.....................................................................................................................................................18
Picture 1: Checkout at Supermarket......................................................................................................18
Picture 2: Candy Aisle at Supermarket..................................................................................................19
Picture 3: Current Package.....................................................................................................................20
Picture 4: Cool Blast Circles....................................................................................................................20
Picture 5: Recommended Packaging .....................................................................................................21
Document 1: Spearmint Survey.............................................................................................................22
Document 2: Peppermint Survey...........................................................................................................23
Document 3: Focus Group Conversation Questions .............................................................................24
Statistics 1: Correlation..........................................................................................................................25
Statistics 2: Confidence – Purchase Linear Regression .........................................................................26
3. Ice Breakers Cool Blasts Chewable Mints
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Financials 1: Manufacturing Cost Estimates..............................................................................................27
Financials 2: Cool Blasts Pizza Promotion..................................................................................................28
Financials 2: Cool Blasts Coffee Promotion...............................................................................................30
Financials 3: Cool Blasts School Promotion...............................................................................................31
Financial 4: Projected Unit Sales for 2015-2020 with Weight in Millions of Dollars ...............................32
4. Ice Breakers Cool Blasts Chewable Mints
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Executive Summary
Our recommendations for Ice Breakers Cool Blast Chews come as the result of months
of research and product testing with a diverse group of consumers. We used their feedback to
draft several iterations of marketing strategies, each one subtly changing and tweaking the
various aspects of the product, promotion, and placement. These changes lead us naturally to
two large and well defined segments within the target market. These segments have unique
and challenging struggles associated with how we could position Cool Blasts to best appeal to
them. However the recommendations that our local chapter of the AMA made will yield a much
larger consumer base, long-lasting strategic partnerships, and increasing fiscal returns for the
next five years.
5. Ice Breakers Cool Blasts Chewable Mints
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Overview
Ice Breakers Cool Blast Chews are presently sold as a “chew” and are designed to
provide immediate freshness and then dissolve. Thus preventing the user from needing to find
a place to dispose of the chew. Hershey’s considers this to be a selling point and a key feature.
Their strategy reflects that this is a new experience, one that is unique and desirable. Our local
AMA chapter conducted primary and secondary market research to gain an understanding of
consumer perceptions of Ice Breakers Cool Blast
Chews.
Our goals were to understand how the
target consumers viewed the product, how they
classified it, what benefits they perceived it having,
and how much they enjoyed the product. We began
by trying to understand the competitive landscape
of the candy, mint and gum industry. Our team
visited various stores and markets to try and
understand where the Cool Blasts were placed, how
much they sold for, and what they were competing
against. In Picture 1 to the left, we found the
product next to chewable candy, other mints gums,
and other Ice Breakers products. This was in the
check out aisle at a local supermarket. Both flavors
were displayed next to each other.
Next we went to a different chain
supermarket to see how Cool Blasts were displayed.
On the bottom left is a picture we took of the
product for sale in the candy aisle. This time only
the peppermint flavor was being sold. In picture 2,
Cool Blasts are surrounded exclusively by gums,
whereas in picture one, there were candies and
mints.
This gave us an understanding about how
the product is currently positioned in stores and
markets. We visited various other stores in different
categories to better understand how Cool Blasts
were placed within the stores, and at what price.
This understanding was critical for continuing with
our research.
With a firm understanding of the price of the
product at various outlets, we moved forward,
trying to understand the strengths and weaknesses
of the product. To these ends, we conducted three
ethnographies. These involved two people each.
Neither had consumed Cool Blasts before. One of
Picture 1: Checkout at Supermarket
Picture 2: Candy Aisle at Supermarket
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them was a member of our AMA chapter who was familiar with the case. The other, was
someone who was not familiar with the case. On two occasions, they were a friend of the
member, and in the last instance, the other person was a family member. The participants
would talk about what they thought of the product in relation to other candies, gums and
mints. Then they would try it, and discuss their opinions. The AMA member would be taking
notes on their discussion.
These three brief ethnographies provided the foundation of our research, giving us a
very cursory understanding of how consumers perceive Cool Blasts. From there we distributed
about 100 surveys, and conducted three focus groups with a total of eleven people. Their
feedback, and the analysis we did was the basis of our targeting and positioning. Below is a
summary of the strengths, weaknesses, opportunities, and threats that we concluded Cool
Blasts has, based on research.
Strengths Opportunities
Well recognized brand
Immediate effect
Potent/ strong
Sugar free
Immediate freshness
Refreshing
Clears sinuses
Making it longer lasting
More flavors
It is a new product
Changing consumer preferences
Weaknesses Threats
Can be overwhelming
Not a lot of awareness
Weird/misleading texture
Misleading package
High price
Dissolves
Short lasting
Bland/boring package
Competition from other products
Competitive market environment
Alternatives
Potential cannibalization of other Ice
Breakers product sales
These beliefs about the market are what helped us understand the main problem facing
Cool Blasts. We believe that the way the product is currently positioned, as a chew, puts
consumers in the wrong mindset when they try the products. We know that if consumers have
the right set of expectations, they will enjoy just about any product. But the way the packaging
looks, the phrasing in the advertisements, the texture of the chew, none of it makes the target
market ready for the experience that is Cool Blast.
Target Market
We had been working from the beginning with the assumption that our core group of
consumers would be the Young Millennials. The Ice Breakers Cool Blast Case defined Young
7. Ice Breakers Cool Blasts Chewable Mints
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Millennials loosely as single or couples who are 18 – 24 years old, ethnically diverse, who are
concerned with their appearance, use scented deodorant multiple times a day, brush their
teeth 3-4 times daily who frequently socialize. However, we knew we could further segment
this market. We limited ourselves to asking the 18 – 24 year olds within our circles. All of the
primary research we conducted was based off of a convenient samples of college students at
our university.
Primary Research
Our AMA team spent a considerable amount of time creating surveys and focus groups,
collecting participants and analyzing the results. With our target market in mind, we needed to
have a basic understanding of their perceptions so that we could know what questions to ask
on the survey and in the focus groups.
Ethnographies
At the beginning of the project, a small group of us took some samples and went to a
friend or family member. We only had one question in mind while conducting these
ethnographies. “What do we think of this product?” We made a point to have someone within
our chapter of the AMA and someone else who have never tried it before. We were aware that
Cool Blasts provided a unique sensation, and we wanted to experience it the same way an
outsider would. We did this three times with two different people each time. All six of the
people put the sample in their mouths and began chewing it. The participants who had never
had it before were shocked that it dissolved. The AMA members were a little less surprised,
they knew that Cool Blasts did that, but had no idea what the chew dissolving would feel like.
The participants described an immediate and powerful freshness. One of them stated that “…it
was like opening my mouth on a really cold and windy day.” The sensation was too strong for
one of the participants who was in pain for a few minutes until the sensation dwindled.
Other participants remarked that it cleared their sinuses, and they were better able to
breathe through their nose for a short period. The biggest take away from this was that for
those consumers who were unprepared, there was a greater chance of them not enjoying the
product. These findings alerted us to some of the questions we should ask on the survey,
moving forwards.
Surveys
With some insights in mind from the ethnographies, we began to design a short
questionnaire that would be distributed on campus to as many students as possible. We
distributed two different versions of the questionnaire, one with the spearmint sample pack,
and one with the peppermint sample pack. We distributed about 100 surveys, and received 98
back. The questionnaires are attached in the appendix as Document 1, and Document 2. We
asked two demographical questions so we could understand who was taking the survey. It is
followed by a picture of the full product, and then a question about how familiar the
respondents were with the Cool Blasts. The survey then instructed the respondent to consume
the sample package that was stapled to the survey. After consuming it, they were asked their
8. Ice Breakers Cool Blasts Chewable Mints
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initial impressions
about the product. That
open-ended question
was followed by a brief
matrix scale question
asking how the
respondent felt about a
short series of items.
The last question was
asking at what price the
consumer would be
willing to purchase the
product.
The graph to the
left shows the matrix
questions. After
consuming the product,
respondents were asked if their breath felt immediately more fresh. More than 80% of the
respondents agreed that their breath felt immediately more fresh, but only half agreed that
they felt more confident. Respondents could not seem to make up their minds over whether
they felt that Cool Blasts lasted long enough before dissolving. Less than half of the consumers
agreed that they would be willing to purchase it, however many of the respondents said that
they would be willing to pay around $2.00 to $3.00 for the product. This told us that for those
consumers who were enjoyed the product enough to try and buy it, the price they were seeking
was similar to the price Cool Blasts is sold for.
When we looked at how familiar the respondents were with the product, we were
expecting to see that those who were more familiar with Cool Blasts would be the ones who
liked it. Oddly we did not see any relationship
between those who were familiar with the
product, and those who agree to the variables
on the left. Roughly half of the people who
agreed that their breath felt immediately
more fresh were unfamiliar with the product
before trying it. This told us that the product was something that people either liked, or they
did not like.
We decided to dig a little deeper into the factors that might contribute the respondents’
willingness to purchase the product. We ran several correlations with different factors to see if
any had an impact on the willingness to purchase. We discovered that there was a strong
positive correlation between willingness to purchase and confidence (Appendix Statistics 1).
Correlation shows whether two or more factors appear to be related, to see whether the
factors were related, we ran a simple linear regression. This showed us that consumers who felt
like Cool Blasts made them more confidant were more likely to be willing to purchase
(Appendix, Statistics 2).
Agreed with… Unfamiliar Familiar
Immediate Freshness 46% 54%
Confidence 48% 52%
Favorable Duration 44% 56%
Willingness to Purchase 54% 46%
84%
49%
39%
35%
10%
37%
21% 21%
6%
14%
40% 44%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Immediate
Freshness
Confidence Favorable
Duration
Willingness to
Purchase
Agree Neutral Disagree
Survey Responses to Scale Questions
9. Ice Breakers Cool Blasts Chewable Mints
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When we asked the respondents to try the product, and then to immediately describe
what they felt it was most similar to, we received a variety of results. The word cloud below
shows what the
respondents felt Cool Blasts
were most similar to. The
larger the word, the more
people used that term.
Words like gum, and mint
were the most commonly
used. However many
people believed that Cool
Blasts were similar to pillow
mints, and other dissolving
treats. One thing that was
surprising, was how many
respondents indicated that when the Cool Blasts began to dissolve, it reminded them of
toothpaste.
From all the research we had done thus far, we had a good idea of the issues we hoped
to address with a focus group.
Focus Groups
We wanted to have a well-rounded understanding of the consumers. We had some
good quantitative and qualitative research from the surveys and ethnographies, but we wanted
to conduct a few focus groups. We believed that seeing the consumers interact with the
product in a structured environment would be beneficial to our understanding of the benefits it
provided, as well as how it was perceived.
We again took a convenient sample of our classmates. We held three focus groups with
a total of eleven people. There were two at the first one, five at the second, and four at the last
one. They were all held in the same room, with the same facilitator asking the same questions.
Each of the focus groups was recorded on video, and by note takers. At the beginning of the
focus group, we gave the participants
garlicy pizza, candy, and soda pop.
During following discussion, we would
give the participants the Cool Blasts. The
goal was to initiate conversation
between participants about their
perceptions of Cool Blasts, and hear them discuss issues of price, usage, packaging, and their
preferences regarding it.
From the surveys, we learned that when Cool Blasts began to dissolve, it had the
consistency of toothpaste. We thought this might be an area that could present interesting
promotional ideas. To test this, many of the early conversation focused on oral hygiene. We
wanted to know what role mints, gums, chews, and strips played in the daily oral hygiene care
of the focus group participants (Appendix, Document 3). Many of them considered mints and
Cool Blasts is most similar to…
Focus Group Goals
Test effectiveness of Cool Blasts
Initiate conversation about product perceptions
Encourage discussion surrounding 4Ps
Understand link to oral hygiene routines
10. Ice Breakers Cool Blasts Chewable Mints
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strips to be vital to their routines. These were things that were carried in purses, or stored in
cars. One of the participants told us that:
“At the beginning of the school year, I make it a point to stock up on gum. I create a
stash and always have some on me.”
She made a point to state that having a lot of gum was a convenience, but that going out to
purchase gum was a hassle, and an inconvenience. Quite a few of the other participants had
similar mentalities towards convenience. They generally fell into two categories based on the
time that they used the product. Early Morning Masters, participants who said they could see
themselves using the product in the morning after breakfast and coffee. The second group
indicated they could see themselves using the product between just after lunch, and just after
dinner. We called them Mid-Day Dynamos, who would have one to two pieces after a fast, and
usually smelly lunch or dinner. One of the participants who fell into the second category told us
that:
“[Cool Blasts] almost seem like they are too strong. I would want to have one with plenty
of time to spare before a meeting, in case everything smells like Peppermint.”
One of the traits of Mid-Day Dynamos was their tendency try to space out the chew. When
given another sample, one of them tried to not chew Cool Blasts, he described it as a “…much
more gradual and relaxed experience”. The rapid dissolving and strong power of the chew were
comments we had heard before. At each stage in the research, we had people tell us that Cool
Blasts were too strong, or that it dissolved too quickly, and that it dissolving caused it to have a
weird texture. One of the respondents from the survey, when asked what Cool Blasts reminded
them of, said that it reminded them of …
“Pepto bismol, but minty. [And that] It disturbed me, when it started dissolving.”
Many others described the texture mismatch as unappealing. Cool Blasts has the texture of a
gum, the way it feels on the hand and tongue, both reminded the participants of chewing gum.
However, the way it dissolved reminded them of a mint. From the focus groups, surveys, and
ethnographies, we had gained a well-rounded and in-depth understanding of the target market,
and were able to split it into two broad segments. We had gathered some valuable feedback on
ways to promote, and chances to improve.
Segments
Early Morning Masters Mid-Day Dynamos
Bad Breath activities concentrated in the
mornings
Awake between 6:00AM and 7:00AM
Drink 2-3 cups of coffee before noon
Usually have no or light breakfast
Frequently exercise in the morning
Consumes one piece of Cool Blast
Usually part - full time college student
Bad Breath activities concentrated in the
afternoons
Typically work in the afternoon
More prone to drink energy drinks
Usually order lunch or dinner
Frequently out late at night
Consumes one to two pieces of Cool Blast
Usually part - full time college student
11. Ice Breakers Cool Blasts Chewable Mints
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Targeting
We developed one unique way to target each of the two segments within the Young
Millennial group, and several broad ways to target the whole Young Millennial group.
Early Morning Masters Mid-Day Dynamos
For targeting these consumers, we plan to
partner with select a coffee chain. Our
goal is for Ice Breakers Cool Blasts to be
the product of choice for eliminating
coffee breath. This is ideal as the products
speed and power are ideal for quick
situations. The Early Morning Masters
frequently purchase coffee at chains. It
would increase trial and awareness of the
Cool Blasts, and these coffee chains could
even double as a source of sales, and not
just samples.
For targeting these consumers, we plan to
partner with a select pizza chain. Our goal is
for Ice Breakers Cool Blasts to be the product
of choice for eliminating after lunch/dinner
odors. This is ideal as the product is easily
shareable, and the unique makeup of the
product allows it to be chewed, or to dissolve
slowly. That way the consumers can have
slow release, or immediate release. This
would be beneficial for the pizza chains
because they could employ cross promotions
with Ice Breakers.
There are various other ways we plan to target the Young Millennials that involve other
strategic partnerships, but those rely more heavily on manipulating the various aspects of
promotional pricing, aspects of the product, methods of promotion, and locations for
distribution. When we look at the segment, and our methods for targeting them with the
benefits that they desire, we have a unique value proposition for each segment.
Positioning
Based on the research we conducted, we believe that Ice Breakers should position itself
as a chewable mint. This is more in-line with what the market desires. About half of our survey
respondents indicated they would not be willing to
purchase the product. This could be for any
number of reasons, however the research from the
focus groups led us to believe that a large
percentage of consumers dislike the texture, and
the dissolving. There is a mismatch between what
Cool Blasts do – dissolve – and the way they look –
like gum – and this is a big reason why many
consumers would not be willing to purchase the
product.
During the focus group, we asked people
what they thought of the package, and someone said something about the phrasing of the text
on the package.
“When I think of a chew, I think of something that you chew for a really long time. These
are gone after like two chews.”
Picture 3: Current Package
12. Ice Breakers Cool Blasts Chewable Mints
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Her words resonated with the feelings of many others that we have talked to, and we
have incorporated those thoughts into our value propositions.
Value Propositions
Early Morning Masters Mid-Day Dynamos
For Early Morning Masters who do not
want coffee breath, Ice Breakers Cool Blasts
are the Chewable Mint that deliver quick,
powerful odor elimination.
For Mid-Day Dynamos who do not want
lunch/dinner breath, Ice Breakers Cool
Blasts are the Chewable Mint that deliver
quick, powerful odor elimination.
Both of these value propositions highlight the same benefit: A powerful flavor that
completely eliminates the previous flavors with an immediate effect. This is unique to Cool
Blasts, and different from other Ice Breakers products. This benefit has the added ability to be
delivered in two different way, by chewing and by letting the chewable mint dissolve. Ice
Breakers Cubes are supposed to be chewed. Ice Breakers Mints are supposed to dissolve. Cool
Blasts has two options that both work. Chewing appeals to the Early Morning Masters who
desire a more immediate effect, and a more gradual dissolve appeals to the Mid-Day Dynamos.
These value propositions are the reason for why we recommend the product changes that we
do.
Product
The product has many aspects. The chewable mint, and the package are the two that we
are recommending changes to.
We believe that calling Cool Blasts a “Chewable Mint” is the first step in putting
consumers in the right mindset for trying the product.
During one of the focus groups one the participants
did not try the sample at the same time as the other
participants. It was everyone’s first time having the
product, and they were all shocked at what it was
like. The one who did not consume the sample, after
hearing about it, refused to have the sample. She did
not think that the experience that was described to
her would be a good one. The other three
participants were confused by the texture. In that
group, everyone chewed. If the chewable mint were
in a circular shape, like to the left, it would put the
consumers in more of a “mint”, “slow dissolve”
mindset. While consumers who want immediate
relief can still chew, like they do with hard mints. Slow dissolve should be the mindset the
consumer has when trying the product for the first time. We thought about ways to make the
texture feel less like gum. One of the ways we thought to do this was to put a hard, but thin
Picture 4: Cool Blast Circles
13. Ice Breakers Cool Blasts Chewable Mints
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sugar-free coating on the outside of the chewable mint. However participants felt this would be
too much like other gums. Therefore we recommend leaving the texture alone, but changing
the shape from a square to a circle.
The Cool Blasts packaging has been something that we have struggled with. We initially
perceived it as uninteresting. We did not feel like it would stick out on store shelves. However,
the target market reacted favorably to it. We left the packaging alone for the most part,
although we did incorporate
the new circular design of the
product. We also changed the
term “chews” to “chewable
mints” to better indicate to
the consumer that this is a
product that they can chew or
let dissolve.
Price
The ideal price for consumers who were willing to buy Cool Blasts was between $2.00
and $3.00. The consumers recognize the Ice Breakers name, and associate it with a powerful
and effective, but costly product. The consumers discussed that $3.00 was a great deal to pay
for 24 chewable mints, but acknowledged that it would be worth it considering the immediate
effect of the product, and the well-known brand name.
The only pricing changes we considered were tied to increasing awareness and trial. We
wanted to do promotional pricing surrounding a pizza chain, a coffee chain, and a book
distributor.
Place
When it came time to decide where to distribute Cool Blasts, we knew where we could
find it, and where our target market said they would purchase it. The current distribution works
fine, we just want to add three methods of distribution into the “Other” category. Currently
Cool Blasts is sold in supermarkets, drug stores, convenience stores, dollar stores, mass
merchandisers, and a few miscellaneous stores. These distribution channels nicely penetrate
all markets and have the potential to reach every consumer group, however to best reach the
Young Millennials, specifically the Early Morning Masers, and the Mid-Day Dynamos, we are
proposing three additions.
Picture 5: Recommended Packaging
14. Ice Breakers Cool Blasts Chewable Mints
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Early Morning Masters Mid-Day Dynamos
We recommend that Ice Breakers partner
with at least one coffee chain, preferably a
national chain. The coffee chain would sell
the 24 packs of Cool Blasts. These packs
would be the normal price. Then there
would be a special promotion. When the
consumer buys a large cup of coffee, they
get the 24 pack for free. The message would
be something like “Your fast acting, coffee
cleansing solution – Cool Blasts”. This would
have the benefit of targeting the Early
Morning Masters directly as they care about
their breath, and frequently visit coffee
shops. This promotion would only last for
September 29, 2016, which is national
coffee day.
We recommend that Ice Breakers partner
with at least one pizza chain, preferably a
national chain. For a limited time period,
the coffee chain would include a 24 pack of
Cool Blasts with the purchase of a large
pizza. The message would be something
like “Your fast acting, on-the-go after meal
breath solution – Cool Blasts”. This
promotion would affect everyone who
purchases the prerequisite items during the
time period. Pizza is a very common college
student lunch and dinner item, so this
strategic partnership would reach the
Young Millennials. This promotion would
run all throughout the month of October
2016.
We recommend one other special promotional partnership. Brick and mortar stores that sell
college text books. These stores are frequently on college campuses. We are proposing a short
term, potentially reoccurring partnership with the company that owns these stores. They would
package Cool Blasts with the books and sell the books with the chewable mints as a free extra.
These stores usually sell other convenience items, so they would likely become the place of
purchase for Cool Blasts if the consumer likes them.
Promotions
To promote all of this, we recommend the use of a wide variety of different mediums.
That range from TV ads, to radio ads, to ads in YouTube channels and on Netflix.
Cool Blasts Coffee Promotion
The Cool Blasts coffee promotion should be advertised on radio talk shows that Young
Millennials frequently listen to. These adverts would consist of a 30 second skit between a
young man with a cup of coffee and bad breath, and his boss refusing to talk to him because of
the bad breath. It would end with the announcer proclaiming that “This does not need to
happen anymore. For a limited time only get a free pack of Ice Breakers Cool Blasts Chewable
Mints with your purchase of a large coffee on national coffee day, September 29, 2016”. These
adverts would air in the mornings for the whole month of September 2016. We chose
September because it is the typical back-to-school month. Also September 29, 2016 is national
coffee day.
The radio ads would be aired in tandem with a series of YouTube adverts that would be
displayed on channels that are popular with the Young Millennials. These ads would consist of a
video version of the radio skit. Except in this skit, the young man with the coffee in hand stands
15. Ice Breakers Cool Blasts Chewable Mints
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at the door to his boss’s office. The young man with the coffee asks to speak to the boss about
something. The boss responds by saying “Sure, we can talk, just shut the door”. The young man
would then enter the room, and begin to close the door behind him. The boss would get
become visibly confused and a little agitated. He quickly stands up and tells the young man that
he meant for him to stand outside of his office with the door shut, and to have a conversation
through the door. This was due to the young man’s coffee breath. There would be an
announcer, like in the radio ad who would say the same thing: “This does not need to happen
anymore. For a limited time only get a free pack of Ice Breakers Cool Blasts Chewable Mints
with your purchase of a large coffee on national coffee day, September 29, 2016”. This ad will
run for the whole month of September 2016.
The goal of this promotion is to attract young millennials who drink coffee to the Cool
Blasts product by offering an easy and quick way to eliminate their coffee breath.
There will also be a short ad in the two months prior alerting consumers about national
coffee day, and Ice Breaker’s involvement.
Cool Blasts Pizza Promotion
The Cool Blasts Pizza promotion should be advertised on the Netflix and Hulu, on shows
that are popular with Young Millennials. The advertisement will be a short 30 second video
showing a diverse group of young people having fun. There are pizza boxes and drinks scattered
around the room. One of the young people starts to tell a joke, but one of his friends cuts him
off because of his bad breath. The interrupting person says “Dude, the pizza came with a pack
of those new Ice Breakers Cool Blasts Chewable Mints. You should really have one. You can
chew them quick, or let them dissolve.” Then the young man has one, chews it, and goes on to
tell his joke. There would also be an accompanying YouTube ad that shows the same scenario.
These two ads would run for the whole month of October 2016 for national pizza month.
The goal of this promotion is to attract young millennials who eat pizza to the Cool Blast
product by offering a quick or slow way to remove their after lunch/dinner bad breath.
There will also be a short add during the two months before. It will remind people that
October is national pizza month, and that to celebrate, Ice Breakers is giving a free pack of its
Cool Blasts to anyone who buys a large pizza from their partner brand.
The goal of this ad is to make people aware of the upcoming promotion.
Cool Blasts Text Book Promotion
The Cool Blasts Text Book promotion should be done in two parts. During July, and
August of 2016, Cool Blasts should be advertised as “An essential part of the back to school
package”. There will be a TV ad during this time that show several different people purchasing
pens, notebooks, binders, etc. and big packs of Ice Breakers Cool Blast Chewable Mints. The
commercial centers on the cashier woman. After seeing several of these people, she asks one of
them why they are buying Cool Blasts. The person says that they are the only item like it, that
“they give you an option as to how you want to use them. If I am in a hurry, I can chew it, if I
want a more prolonged experience, I can let it dissolve. I always have some on me and in my
car. Just in case.” The ad ends by saying that that Cool Blasts are found where all back-to-school
supplies are, and for the months of August and September, you get a free 24 pack with your
16. Ice Breakers Cool Blasts Chewable Mints
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textbooks. The same ad will also be played on Netflix and Hulu during shows that Young
Millennials watch.
The goal of this ad is to show consumers that Cool Blasts are a necessary and important
part of their back-to-school shopping.
During the months of October through November, there will be a second ad that shows
a high school age student. They are seen having breakfast then giving a presentation, having
lunch and then talking to teachers and students. After breakfast and lunch, each time, the
student had a Cool Blasts. There is an announcer who says that “Everything is easier when you
know you have cool breath”.
This ad reminds consumers that Cool Blasts are a vital part of the school routine.
Timeline of Events
The following is a tentative timeline of the promotional events that we have
recommended.
July 2016
Cool Blasts School Supplies Promotion
August 2016
Cool Blast Text Book Promotion
Cool Blast Coffee Pre-Promotion
September 2016
Cool Blasts Text Book Promotion
Cool Blasts Coffee Promotion
Cool Blasts Pizza Pre-Promotion
October 2016
Cool Blasts School Confidence Promotion
Cool Blasts Pizza Promotion
November 2016
Cool Blasts School Confidence Promotion
17. Ice Breakers Cool Blasts Chewable Mints
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Financials
The pie chart and table to
the left show the percentage of the
$10 million budget that each of the
three ad campaigns uses. The coffee
ad and promotional campaign used
approximately $5.1 million. The
pizza ad campaign used
approximately $3.2 million, and the
school ad campaign used $1.2
million leaving less than $500,000
remaining.
We came to these numbers
by estimating a unit cost per
package of chewable mints. From
there we looked at the number of
large coffees drank per day, the
number of large pizzas bought per
day, and the number of college
students who purchase textbooks.
We used numbers from 2013 to
approximate. From there we
calculated the costs of the product
that would be given for free during
the ad campaign. We also factored
in the cost of producing
advertisements.
For the sales forecast, we looked at the 2015 sales numbers. Through our promotional
recommendations, about 10 million customers will have the chance to try Cool Blasts, either
with their coffee, or pizza, or as a bonus with their textbooks. The percentage of participants
from the survey who were willing to purchase was 35%. We used that number to estimate that
Cool Blasts will sell in 2016, %107 of their 2015 numbers. In 2015 there were $8.8 million worth
of sales. Based on our projections for 2016, Ice Breakers will sell $9.5 million (Appendix:
Financials 4).
We see sales of Cool Blasts trending upwards over the next five years, but getting level
as it approaches the year 2020. We looked at the categories for sales by revenue. Other was the
lowest category, however the sales gathered through the coffee shops, and college book stores
are a boon to that. Now the other category is a fairly substantial part of the cash flow. Our
model does not account for the likely increase in the Wal-Mart and Target sectors.
Percentage Allocation of $10 Million Budget
Coffee Ad & Promotional Campaign 52%
Pizza Ad & Promotional Campaign 33%
School Ad & Promotional Campaign 12%
Remaining Budget 3%
52%
33%
12%
3%
18. Ice Breakers Cool Blasts Chewable Mints
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Projected Unit Sales in Millions of Dollars for 2015-2020
We feel that the above recommendations are the logical outcome from the research
conducted, the analysis performed, and the consumers witnessed. Our decision to promote the
choice aspect of Cool Blasts was the direct result of observing consumers struggle in confusion
between the texture, telling them to chew, and the package telling them it is a mint. Defining
Cool Blasts as a Chewable Mint will without a doubt put the consumers in the proper frame of
mind. One that tells them it is alright to chew the product, but that letting it dissolve naturally
over time is also an option. All of our recommendations to the product, packaging, and
promotion cater to this, and those changes are reflected in the advertisements. As long as our
assumptions hold true, then the end result of giving several million packages away for free will
be yielded with increasing fiscal returns, a more loyal consumer base, and better strategic
partnerships.
$8.89
$9.49
$10.57
$10.85 $10.93 $10.93
$-
$2
$4
$6
$8
$10
$12
2015 2016 2017 2018 2019 2020
MillionsofDollars
19. Ice Breakers Cool Blasts Chewable Mints
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Appendix
The following are all the documents, pictures, and spreadsheets that we used while designing this case.
Picture 1: Checkout at Supermarket
25. Ice Breakers Cool Blasts Chewable Mints
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Document 3: Focus Group Conversation Questions
1. I wanted to know about how important oral hygiene is in your daily routines.
2. What sorts of things do you do?
Brushing, how frequently?
Floss?
Mints?
3. What is your opinion of mints, gum, breath strips and other items used for fresh breath?
4. How familiar are you with Ice Breakers Cool Blast Chews?
5. What do you think of it?
Good or Bad, Weird or Interesting?
Why?
(Samples)
6. How does it feel?
7. What do you think about it while using it?
8. Does it remind you of anything?
9. What is it most similar to?
10. How powerful is it?
11. When could you see yourself using this?
(Give containers)
12. What do you think of the packaging?
13. What do you think about price?
26. Ice Breakers Cool Blasts Chewable Mints
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Statistics 1: Correlation
Correlations
ReFamiliar
ReImmediate
Freshness ReConfidence
ReProduct
Length RePurchase
ReFamiliar Pearson
Correlation 1 .087 -.028 -.080 .004
Sig. (2-tailed)
.587 .860 .620 .979
N 41 41 41 41 41
ReImmediate
Freshness
Pearson
Correlation .087 1 .174 .059 .063
Sig. (2-tailed)
.587 .087 .568 .536
N 41 98 98 97 98
ReConfidence Pearson
Correlation -.028 .174 1 .086 .422**
Sig. (2-tailed)
.860 .087 .401 .000
N 41 98 98 97 98
ReProduct
Length
Pearson
Correlation -.080 .059 .086 1 .182
Sig. (2-tailed)
.620 .568 .401 .075
N 41 97 97 97 97
RePurchase Pearson
Correlation .004 .063 .422**
.182 1
Sig. (2-tailed)
.979 .536 .000 .075
N 41 98 98 97 98
**. Correlation is significant at the 0.01 level (2-tailed).
27. Ice Breakers Cool Blasts Chewable Mints
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Statistics 2: Confidence – Purchase Linear Regression
Confidence - Purchase Regression
Variables Entered/Removeda
Model
Variables
Entered
Variables
Removed Method
1 RePurchaseb
Enter
a. Dependent Variable: ReConfidence
b. All requested variables entered.
Model Summary
Model R R Square
Adjusted
R
Square
Std. Error of
the Estimate
1 .422a
.178 .170 .65547
a. Predictors: (Constant), RePurchase
ANOVAa
Model
Sum of
Squares df
Mean
Square F Sig.
1 Regression 8.958 1 8.958 20.850 .000b
Residual 41.246 96 .430
Total 50.204 97
a. Dependent Variable: ReConfidence
b. Predictors: (Constant), RePurchase
Coefficientsa
Model
Unstandardized
Coefficients
Standardized
Coefficients
t Sig.B
Std.
Error Beta
1 (Constant) 1.693 .158 10.722 .000
RePurchase .343 .075 .422 4.566 .000
a. Dependent Variable: ReConfidence
28. Ice Breakers Cool Blasts Chewable Mints
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Financials 1: Manufacturing Cost Estimates
Cost to
make
$
0.53
This is the estimated cost to produce Cool Blasts derived from an
aggregate MSRP, and factoring for the different allowances that
members of the supply chain receive.
Ice Breakers allowance25% This is an estimated markup on the Cool Blasts to the wholesaler.
Price to
wholesaler
$
0.70
This is the estimated price that the wholesaler pays for 1 unit of
Cool Blasts.
Allowance
to
wholesaler 30%
This is the estimated markup that the wholesaler places on Cool
Blasts. Industry standard is 20% to 30%.
Price to
retailer
$
1.00 This is the estimated price that retailers pay for Cool Blasts.
Allowance
to retailer 50%
This is the estimated percentage that retailers receive. Industry
standard 33% to 50%.
MSRP
$
2.00 This is an aggregate price taken from various different sources.
Budget
$
10,000,000 The total budget of 10 Million dollars.
Totally
Possible
Quantity 19,047,619
The highest possible units Ice Breakers could give away
for free.
29. Ice Breakers Cool Blasts Chewable Mints
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Financials 2: Cool Blasts Pizza Promotion
Yearly Pizza
Consumption 3,000,000,000
The approximate number of pizzas
consumed per year in the United States.
Monthly Pizza
Consumption 250,000,000
This is the monthly number of pizzas
consumed per year in the United States
for all pizza companies.
http://www.statisticbrain.com/pizza-
statistics/
Monthly Large Pizzas Sold By Chain
Nationally 2013
Pizza Hut 19,912,500 Dollar value of Pizza Market
$
37,375,108,000
Domino's 11,712,500 Pizza Hut's Market Share 15.93%
Papa John's 8,162,500 Domino's Market Share 9.37%
Little Caesars 5,625,000 Papa John's Market Share 6.53%
% of all pizzas
that are large 50% Little Caesars's Market Share 4.50%
Independent Stores' Market Share 40.33%
Other Chain's Market Share 23.34%
http://www.pmq.com/December-2013/Pizza-Power-The-
2014-Pizza-Power-
Report/index.php?cparticle=1&siarticle=0#artanc
Cost of Cool Blasts Given away with
Pizza
We are assuming that very few people will buy more pizza
because they get a free pack of Cool Blasts with it.
% increase in
pizza sales due
to giveaway 1%
We are also assuming that every single
person gets a single free pack of Cool
Blasts with any size pizza.
Pizza Hut $ 10,558,603.13
Domino's $ 6,210,553.13
Papa John's $ 4,328,165.63
Little Caesars $ 2,982,656.25
30. Ice Breakers Cool Blasts Chewable Mints
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Cost to make
the commercial
2008: 30 sec
national
commercial $ 342,000.00
http://smallbusiness.chron.com/much-
television-advertising-really-cost-
58718.html
during
popular show $ 475,000.00
2014: midrange
commercial cost $ 150,000.00
http://www.danielmallfilms.com/how-
much-does-a-tv-commercial-really-cost/
Total Costs for Cool Blast Pizza
Promotion
Pre-Promotion
Ad $ 150,000.00
Promotional Ad $ 150,000.00
Little Caesars $ 2,982,656.25
We are assuming a partnership with only
one pizza company. Whichever one has a
target market most similar to ours.
TOTAL FOR
PIZZA
PROMOTION $ 3,282,656.25
REMAINING
BUDGET $ 6,717,343.75
31. Ice Breakers Cool Blasts Chewable Mints
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Financials 2: Cool Blasts Coffee Promotion
Daily cups of coffee in US 382,000,000
https://sdsublog.wordpress.com/2013/12/12/ho
w-much-coffee-does-america-drink/
% coffee sales in US 33%
Number of daily coffee
sales 126,060,000
Cups of Coffee per day by store 2013
Starbucks 46,264,020 Starbucks's Market Share 36.7%
Dunkin Donuts 31,010,760 Dunkin Brand's Market Share 24.6%
% of cups were large 30% Other Brand's Market Share 38.7%
http://scholar.harvard.edu/files/nithingeereddy/
files/starbucks_case_analysis.pdf
Cost of Free Cool Blasts with each large cup for 1
day
Starbucks $ 7,286,583.15
Dunkin Donuts $ 4,884,194.70
Total Costs for Cool Blasts Coffee Promotion
Pre-Promotion Ad $ 150,000.00
Promotional Ad $ 150,000.00
Dunkin Donuts $ 4,884,194.70
TOTAL FOR COFFEE
PROMOTION $ 5,184,194.70
REMAINING BUDGET $ 1,533,149.05
32. Ice Breakers Cool Blasts Chewable Mints
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Financials 3: Cool Blasts School Promotion
Number of College Students in US in
2013 12,200,000
http://nces.ed.gov/fastfacts/display.asp
?id=372
% of classes requiring textbooks 75%
% of students buying textbooks 35%
http://www.usnews.com/news/articles/
2014/01/28/report-high-textbook-
prices-have-college-students-struggling
% of students buying textbooks from
campus stores 45%
Number of college books bought
from campus stores 1,441,125
Total Cost of School Promotion
Cost of 1 Free Cool Blasts per
student for college books $ 756,590.63
Supplies Promotional Ad $ 150,000.00
Text Book Promotional Ad $ 150,000.00
Confidence Promotional Ad $ 150,000.00
TOTAL COST OF SCHOOL
PROMOTION $ 1,206,590.63
REMAINIG BUDGET $ 326,558.43