A Marketing Plan

1. Quaker Chewy
2005 Marketing Plan
Jenna Baker
Kelly Bushnell
Stephanie S lli
St h i Sullivan
Teo Tertel

2. Situation Analysis
Nature of Industry
(Breakfast/Cereal)
Health and wellness trend throughout
industry
Positioning towards children
Convenience and portability important
Total new product introduction
increasing since 2002
i i i

3. Situation Analysis
Nature of Category
N t fC t
Customers looking for bar that’s
healthy and great tasting
Increased market segmentation
Convenience
Market to women
Dollar sales increasing

4. Situation Analysis
Environment
E i t
National Economy becomes stronger
Agriculture industry
Agriculture export surplus increased 28%
A i lt t l i d
from 2003
US Regulations require increased soil
conservation

5. Situation Analysis
Competition
C titi

6. Situation Analysis
Brand’s Current Situation
Current Position
Features of the
Chewy Granola
Bar

8. Situation Analysis
Current Users
C tU
People: 25-54
25 54
Women
Household income $50 000 and
H h ld i $50,000 d
above
Married with children 2-17
Home owners
Media

9. Nature Valley
(Quaker’s t
(Q k ’ top competitor)
tit )
Increasing sales and share in
industry
Distribution could be better
Healthy/Active Positioning
Big picture
Not industry leader
Most promising growth
Most promising market
pote t a
potential

10. Target Dollar Sales and Market
Share: 2005
Sh
2004 s
2004’s Dollar Sales: $111,365,500
Decreased 6.1%
Proposal for 2005
Goal: $126 250 000 in dollar sales
$126,250,000
13.37% increase from 2004
Market Share
1% increase from
7.6 % to 8.6%

11. Dollar Sales Using Current Growth Percentages
120,000,000
100,000,000
100 000 000
D o lla r S a le s
80,000,000
2004
60,000,000
2005
a
40,000,000
20,000,000
-
Quaker Kellogg's Nature Kellogg's General Private
Chewy Nutri Grain Valley Rice Mills Milk Label
Krispies and
Treats Cereal
Brands

12. Target Market
Primary
Demographic: Parents (Adults) 18 to 49,
HHI $50,000+, Child Age 2-17 yrs old
2 17
Psychographic: Parents seeking to
encourage a healthy lifestyle in
g y y
themselves and their children
Secondary
y
Child Age 2-17 yrs old
y
with active lifestyle

13. Strategies and Tactics
Product
Price
Promotion (activities and b d t)
P ti ( ti iti d budget)
Place

14. Strategies and Tactics
Product
P d t
Strongly associated with Quaker Oatmeal
gy Q
breakfast
Popular among children and women
Market leader in granola bars
Flavors:
Butterfinger
Chocolate chip
Peanut butter chocolate chip
S’mores
Variety pack
Changing conceptual
g g p
product image

15. Strategies and Tactics
Price
P i
10 cents increase for promoted: $
p $3.53
help support larger adv expenditures
Without risking turning away current customer
Less than average promoted price increase for
industry
8 cents increase for
non promoted: $4.73
non-promoted: $4 73
Lowest non-promoted
Maintain price advantage
p g

16. Base and Promoted Price by Brand
2004
Category
Quaker Chewy
nds
Nutri Grain Avg Non Promoted
Non-Promoted
Bran
Price Per Volume
Nature Valley
Avg Promoted Price
Rice Krispies Treats Per Volume
Milk N Cereal
Private Label
0 2 4 6 8
Dollars

17. Base and Promoted Price by Brand for 2004
7
6
5
Avg Promoted Price Per
D ollars
4 Volume
o
3 Avg N P
A Non-Promoted P i
t d Price
Per Volume
2
1
0
0 2 4 6

18. Ostrow Model
Part I: Marketing Factors That Affect Frequency
Established Brand -0.2
02
High Market Share -0.2
Dominant Brand -0.1
High Brand Loyalty -0.1
Long Purchase Cycle 0.2
Product Used Occasionally 0.2
Need to Beat Competition 0.2
Advertising to Older Consumers/ Children 0.2
Part II: Copy Factors That Affect Frequency
Simple Copy 0.1
Copy More Unique than Competition 0.1
Continuing Campaign 0.2
Product Sell Copy 0.1
Single Kind f Message
Si l Ki d of M 0.2
02
To Avoid Wear out: New Messages -0.2
Larger Ad Units -0.2
q y
Part III: Media Factors That Affect Frequency
Lower Ad Clutter 0.1
Compatibility Editorial -0.1
Attentiveness High -0.2
Few Media Used -0.2
Opportunities for Media Repetition -0.2
02
Sum of Factors Affecting Frequency -0.1
Estimated Frequency for Quaker's Media Plan 2.9

19. Strategies and Tactics
Place
Pl
Ostrow model suggests frequency of 2 9
2.9
Mature well known brand
More complex advertising message
National plan to optimize reach
Spot advertising
for North Central US
o o t Ce t a

20. Promotion
Advertising
Ad ti i
Increase in Advertising Expenditures
Major Brands by Ad Spending 2004
ns
25
Dolla in Million
20.2
20 2
20
15
8.97 8.83
10
ars
3.21
5 0.67
0 67
0
Kellogg's Kellogg's General Nature Quaker
Nutri Rice Mills Milk Valley Chewy
Grain Krispies N Cereal Granola Granola
Cereal Cereal Bars Bars Bars
Bars
Why $1 million?

21. Promotion
Media S
M di Scope
Outdoor Media
Internet
Magazine
M i
Television
Nontraditional Media

22. Promotion
Outdoor Media Channels
O td M di Ch l
Heavy viewers more likely to
y y
purchase
Promotes outdoor healthy lifestyle
Signage: features Quaker Chewy
Granola Bars as on-the-go snack

23. Promotion
Internet
I t t
Website has low popularity rating
Heavy internet users are 16% more
likely to purchase Quaker Chewy
Develop better website
User-friendly
Interactive games
Sweepstakes

24. Promotion
Magazine
M i
Magazine readers more likely to purchase
Quaker Chewy
Important to integrate Quaker Chewy
po ta t teg ate Qua e C e y
advertisements into magazines
Convince parents snack bars are healthy
p y
and beneficial to their children and them as
well

25. Promotion
Television
T l i i
2004 MRI data shows moderate to light
te e s o
television watchers are more likely to
atc e s a e o e e y
purchase Quaker Chewy
Use specific channels and times
p
Television allows specific targeting
Women:
Children:

26. Promotion
Non-
Non Traditional Media
N -T diti l M di
Sponsored Sporting Events
Soccer Tournaments
Little League games
Summer Camps
Key values
Health and active exercise

27. Promotion
Non-
Non Traditional Media
N -T diti l M di
Prize Point system
Points for products purchased
Incentives create win-win scenario
I ti t i i i
Users login and play for
discounts/promotions
di / i
Generates sales, brand recognition

28. Promotion
Non-
Non Traditional Media
N -T diti l M di
Marathons
Helps target women
Helps promote health and safety
In-store Promotions
Feature with price reduction 3 times a yr
F t ith i d ti ti
Display with no price
reduction d i
d ti during summer

29. % Dollars by Merchandising Condition 2004
30
25
% of Dollars
20 Disp Only
15 Feat Only
D
10 Price Red Only
5
0
in
iva lley
y
ry
l
al
ies
be
ew
ra
go
re
Va
La
G
isp
Ch
Ce
te
tri
Ca
te
Kr
re
N
er
Nu
tu
ce
ak
ilk
Na
Pr
Ri
M
Qu
Brands

30. Promotion
Media Timing
Quaker targets active lifestyles
Expenditures highest in summer, moderate in
fall and spring, and lightest in winter
p g, g

31. Quaker Seasonal Advertising Expenditures for
2004 and 2005
500,000
500 000
400,000
Dollars
300,000 2004
200,000 2005
100,000
0
Winter Spring Summer Fall
Season

32. Questions?
Thank You!