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This ad-campaign book describes a complete Repositioning process for the Skippy Peanut Butter Brand. "Skippy: Life's Best Complement in a Jar" Visit www.JThomasIMC.com today!
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We at Ignite know that in each individual lies a desire to connect. We connect to others, we connect to objects, and we connect to experiences. It is in this desire to connect that great relationships are sparked between brand and user. Through innovate solutions, we work to ignite the desire in consumers to connect to your brand.
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IGNITE has devised
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1933 – Skippy brand is first produced by Rosefield Packing Co.
1960 – Skippy television sponsorship. “Dennis the Menace”
1963 – Norman Rockwell illustrations created for Skippy
1977 – Production begins in the Little Rock, AR plant
1994 – Olympian Bonnie Blair becomes spokesperson
1996 – New formula announced
1998 – Yankees’ Derek Jeter introduced as spokesperson
2000 – Unilever acquires Bestfoods for $20.3B
2004 – Production begins on Skippy Snack Bars
2010 – The new Skippy is introduced
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IGNITE has devised an innovative and integrated campaign that will re-introduce Skippy as a pioneer
in the peanut butter market. By understanding our target market and the way they use peanut
butter, we will take Skippy from a commodity to product, to a highly
customized and highly differentiated staple of our consumer’s everyday
routine. Through a complete repositioning of the product, we are confident
that this integrated communications plan will make Skippy the first choice
of peanut butter for 18-34 year olds.
Objectives:•Increase awareness of Peanut Butter as a customized product•Increase preference for Skippy Peanut Butter over other non-customized brands•Develop an innovate, flexible, and sustainable creative strategy that can be used for future marketing communications
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Over the past several years many trends can be seen in the food and beverage industry as well as
in the marketplace as a whole. Three key insights include:
Customization: consumers no longer desire products developed for the mass market,
“me-tailing” is the new retailing. In every consumer category from electronics to
cosmetics to food and beverages, there is evidence of an increase in individualized products.
Price-Sensitivity: Current economic climate has decreased the amount of brand loyal
consumers in the marketplace. Consumers now base many purchase decisions,
especially on products with low perceived differences between brands, solely on price.
Nutraceuticals: As the lifestyles of consumers change, the vitamins, minerals and
supplements industry is increasing rapidly. Because of increasing demand for products
with specific health benefits sales in the nutraceuticals industry are expected to reach
$3.6 billion by 2013.
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Peanut Butter Market DemographicsDemographic analysis of peanut butter users in terms of age, income, and education demonstrates specific patterns that will prove useful in profiling our product’s target market. Analysis of the peanut butter market reveals that peanut butter users tend to be well educated and affluent. We have also identified a connection between the 18 to 34 year old segment and preference for all-natural peanut butter. We believe these insights could have a strong impact on future strategic decisions, and may present an opportunity to build competitive advantage in the market.
Demographic trends show a direct and measurable positive relationship between peanut butter consumption and income. On average, the higher a consumer’s annual household income the more likely they are to have consumed peanut butter in the past 6 months. 71% of consumers with an average income of less than $20,000 consumed peanut butter in the past 6 months while consumers with an income of $75,000 to $149,000 were the most likely to have consumed peanut butter, with an 80% likelihood. The same pattern is present in crunchy, creamy and all-natural peanut butter varieties.
The market also showed a direct positive relationship between education and peanut butter consumption. Consumers with less than a high school education were the least likely market segment to have consumed peanut butter in the past 6 months, with a likelihood of 68.8%. This percentage increased directly with each level of education. 77.3% of consumers who completed college had
consumed peanut butter in the past 6 months, a greater percentage than any other segment. This pattern was congruent in all varieties of peanut butter.
Vitamin and Supplement Market DemographicsWe have identified similar usage patterns in the vitamin and supplement industry through demographic trend analysis. The vitamin and supplement market exhibits a direct and positive relationship between vitamin and supplement usage, income and education. Vitamins and supplements share the very same correlation that peanut butter does with each level of education and income.
Trends show a direct and measurable positive relationship between vitamins and supplement usage and income level. The least likely segment to use vitamins and supplements were those with an annual income of less than $20,000. The most likely users have annual household income of greater than $150,000.
There is a similar measurable relationship between usage and education level. The least likely segment to have used vitamins or supplements in the past 6 months was those with less than a high school education, who exhibited a 39.7% likelihood. The most likely segment to have used vitamins or supplements was those with a graduate college plus education, who exhibited a 57.9% likelihood.
There is a clear relationship between the peanut butter and the vitamin and supplement markets. In both markets, usage
increases as the segment becomes more educated and earns a higher income. Highly educated individuals are 18% more likely to use vitamins and supplements , and 8.5% more likely to consume peanut butter. Affluent consumers are 12.1% more likely to use vitamins and supplements, and 9% more likely to consume peanut butter. These figures have prompted us to conduct further inquiry into specific vitamin and supplement product usage.
Performance, Health and Weight related Supplement DemographicsTo equate with performance related vitamins, we analyzed demographic trends related to Centrum Performance vitamins.
We analyzed demographic trends related to Centrum Weight Smart vitamin supplements in order to help illustrate the weight control supplement market. This market was more than twice as likely to be female. They were interested in TV networks such as the Food Network, Lifetime, ABC family and QVC. They had a high magazine readership in publications such as Reader’s Digest, Allure, In Style and Women’s World.
In order to get a picture of the market for overall health supplements, we analyzed the original Centrum product. The amount of male and female consumers was nearly equal for this product. TV interests for this market include ESPN, G4 network, CBS News. They were highly interested in Elle and reader’s Digest, and enjoyed traveling.
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Skippy is one of the most recognizable brands in the United States. Due to the intense competition that Skippy Peanut Butter
has had to face from both direct and indirect competition, this well-established company has been unable to obtain the product’s
true market potential. Since the Peanut Butter industry has not seen a major change in recent years, sales have been stagnant.
Direct Competition
Other major peanut butter brands: Jif, Peter Pan, Goober, Squirrel, generic
store brands.Other major peanut butter brands can often give the same satisfaction and benefits to consumers as Skippy. This is especially the case when consumers are not brand loyal. If all products are viewed as similar, there is no reason to choose a product except by price.
Indirect Competition
Similar in taste and consistency to peanut butter:
Cashew ButterAlthough it has different nutritional aspects than peanut butter, cashew butter is the closest tasting substitute that offers the most benefits to the consumer. This substitute provides mostly the same benefit to peanut butter, while also being acceptable to those that are allergic to peanuts.
Similar in function: Sunflower Butter, Almond Butter, Soy Nut
ButterProducts that are similar in function, but different in taste, to peanut butter have a small but dedicated following. Currently, most of the market that uses these goods are those consumers who are unable to consume peanut butter because of health reasons, or a distinct personal preference. Because of their unique nutritional offerings, products that are similar in function to peanut butter may soon be taking some of Skippy’s market share.
Non-traditional Competition
Other spreads:Humus, Guacamole, and Cream Cheese
There are a large amount of products that fit in this category. In this area of substitutes to peanut butter, most of these products cannot serve the direct same use, but very similar purposes. All of these products are mostly niche oriented and do not pose an immediate threat to the Skippy market share, as their main purpose is different.
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To better understand where Skippy is as a brand and where it can go, we examined the Strengths, Weaknesses, Opportunities and
Threats. Our findings will better help us establish a new positioning for Skippy in what is clearly a stagnant advertising market. It will
also define all necessary knowledge about the market to stay ahead of what the current direct competition is doing.
• Well known brand
• Top of the mind awareness in consumers
• Reputation for high quality products
• Easily accessible to consumers
o p p o r t u n i t i e s
•Many population segments go un-served by
current peanut butter brands
•Industry trends towards customization have not
yet been realized by this segment
• Homogenous industry allows for potential
differentiation
w e a k n e s s e s
• Lacks strong brand identity
• Doesn’t occupy unique position in the
marketplace
• Product has gone relatively unchanged since
its introduction in 1933
• Price-sensitive consumers
•Low barriers to imitation
•Consumers may reject changes in products
they are familiar with
•Government regulations
stre
ng
ths
th
re
at
s
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Our target audience is consumers ages 18 - 34 year olds who value customized products tailored to complement
their lifestyle needs.
Consumers in this demographic have be a part of the “meconomy” their entire life and have come to rely upon individualized products.
HEALTHTargeted to the consumer who want to add vital vitamins and minerals to their everyday routine.
ACTIVETargeted to consumers who need products to support their daily physically activities.
SLIMTargeted specifically to consumers who desire products that support their weight conscious lifestyle.
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For consumers who value customized products, S K I P P Y isthe only brand of PEANUT BUTTER tailored to complement their specific lifestyle needs.
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As we have stated, consumers are given few choices in
the peanut butter category. Each brand on the shelf has
the same product offerings therefore, consumers don’t
identify with these options as “the perfect peanut butter
for me.” The new positioning allows consumers to view
Skippy as a product that helps them in their daily
endeavors. Skippy is no longer just peanuts in a jar but
rather a complement to the unique lifestyle of each
consumer.
Because the new Skippy is a customized product, the
core “Skippy Classic” brand will no longer exist. As
consumers become aware that they deserve a
peanut butter that helps them achieve their desired
lifestyle, a generic “one size fits all” peanut butter
will become obsolete and no longer necessary in the
marketplace.
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Let’s face it: peanut butter ads have been as boring
and predictable as the product inside the jar for
decades. Whether it’s a mom making sandwiches for
school lunches or kids making a mess of the midday
snack, we know what’s coming next. These ads have
been relatively successful in maintaining market share
for the “Big 3” but ultimately they have alienated just
about everyone who’s not a child or a parent.
So the question is, how do we re-engage these
consumers?
In the new “Life’s Best Complement” campaign we
have given consumers a specific reason to reach for
Skippy. The ACTIVE, HEALTH , and SLIM formulations
complement their unique lifestyle.
We have chosen to play on the duality of
“complement” and “compliment” by allowing SKIPPY
to compliment the everyday achievements and
milestones of the user.
ObjectiveIntroduce the consumers to the notion that they deserve to chose the variety of peanut butter that best fits their needs.
TargetMales and females18-34 who desire customization and personalization in their everyday life.
Current Position“Fuel The Fun”- For kids who look to peanut butter for a fun and exciting snack.
Competitive FrameUnique, benefit-oriented formulation
Consumer PromiseThrough its customized varieties, skippy complements your lifestyle
EvidenceIn a category with little variety and differentiation between brands, consumers want a peanut butter that has specific benefits to help them achieve the lifestyle they desire.
VoiceLight-hearted, casual, complementary, humorous
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Take this compliment to Jamba Juice and we’ll
thank you with a FREE 16 oz
Skippy Smoothie.
CHOOSE YOUR COMPLEMENTActive, Health, or Slim
You look great today!-Skippy Slim
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Objective: Create awareness for the new Skippy brand within our target market of 18-34 year olds. Infiltrate multiple media outlets such as TV, magazine, outdoor advertisements, internet, and co-ops to reach this key demographic and gain brand awareness and ultimately brand preference.
Approach: Offensive
Who: People who are looking for customized products to fit their everyday lifestyle. Skippy provides the customization that the consumer is looking for in the peanut butter market.
What: Media targeted at the demographic of 18-34 year olds valuing customization.
When: Launch buzz period in November. One-year campaign /Continuous scheduling on multiple media outlets
Where: We are targeting the United States as a whole, while reaching our key demographic through the most used media outlets. In addition, we have a strong focus on social networking which the brand hasn’t used frequently in the past.
How: Obtain optimal levels of both reach and frequency through the following media outlets:
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OnlineBanner adsPodcasts, blogs, mobile, social networking
Traditional MediaTVMagazines
OutdoorBillboards/Mosaics
Specialized MediaCo-Op with Jamba JuiceConan O’Brien spotAthletic Events
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Buzz Period Introduction Dispersion Market SaturationMonth of Year 2010 November December January February March April May June July August September October
BUZZConan O'Brien
PodcastsBlogs/Video Blogs
MobileTwitter/Facebook
MAGAZINEWomen:
CosmopolitanSelf
Marie ClaireCooking Light
Good HousekeepingBetter Homes and Gardens
Men:Men's HealthMen's Journal
Sports Illustrated
OUTDOORBillboards
Building Mosaic
INTERNETBanner Ads:
ESPN/sports sitesWomen's Health Sites
Men's Health SitesNutrition SitesFitness Sites
Active lifestyle Sites
TVABC/NBC/CBS
MTV/E!ESPN/Sports Channels
Cooking ChannelsTalkshows: Ellen, Oprah
Nightly Local News
Co-OpJamba Juice
PRPictures of Athletes with Skippy
SlimActiveHealth
Combination
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We have compiled a marketing plan that targets consumers who favor customization and are more susceptible to trying new products that are geared toward their lifestyle. This marketing plan will prove beneficial because our target demographic is comprised of highly-connected individuals who value a product that benefits their unique lifestyle.
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OnlineBanner ads
Selection: Introduction-Dispersion-Market Saturation
Timeline: January –October
Rationale: Banner ads will begin running after the buzz period, the months of November and December. The public needs to be aware of the product before banner ads can be run. Banner ads do not create awareness, just further inform the public about the product.
Podcasts, blogs, mobile, social networkingSelection: Buzz Period
Timeline: November-December
Rationale: These different forms of networking will create awareness and bombard the public from all angles. This will create buzz and the public will seek out answers to understand the new product and gain comprehension.
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Traditional MediaTelevision
Selection: Buzz Period-Introduction-Dispersion-Market Saturation
Timeline: November-October
Rationale: Television reaches almost every home in America. To accurately reach our key demographic, Television would maximize awareness and reach consumers who may see alternate media outlets.
MagazinesSelection: Buzz Period-Introduction-Dispersion-Market Saturation
Timeline: November-October
Rationale: Magazine circulation is a popular form of casual reading. Through this outlet, we will be able to generate awareness and introduce the product to the market. Therefore, the consistent ads in a consumer’s weekly magazine will promote the product until the market is fully saturated.
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OutdoorBillboards/Mosaics
Selection: Buzz Period-Introduction-Dispersion-Market Saturation
Timeline: November-October
Rationale: Billboards and building mosaic are used to create awareness, but after the buzz period is over, they are still useful for recall throughout the process of the public learning and purchasing the product.
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SpecializedCo-op Jamba Juice
Selection: Introduction-Dispersion-Market Saturation
Timeline: January-October
Rationale: Co-ops promote the brand in a subtle yet identifiable way. When introducing the new Skippy, it is important to identify that the brand can be paired with other products used in consumer’s daily lives. As people become more aware of the product, they can begin to take action in using the product in various ways. Furthermore, paring with a brand that is already well-established and promotes the same core values as Skippy. Both brands promote a well-balanced life based on the individual customer’s needs.
Conan O’BrienSelection: Buzz Period
Timeline: November-December
Rationale: Conan O’Brien is moving his late night talk show to TBS. He has a large following of people and a large demographic will tune into his show the first week it airs. Conan will personally introduce the brand and new product and this will create buzz and awareness.
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Pictures of Athletes with SkippySelection: Introduction, Market Saturation
Timeline: January, February, August-October
Rationale: These pictures will go hand in hand with big sports games that are happening. January is when the Super Bowl occurs and has the largest audience on television. February is when March Madness starts. August through October is an overlap of Baseball Playoffs and Pro and College Football beginning their season.
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