Case Hist Presentation

STRATEGIC LEADERSHIP:IDENTIFYING

NEW PLATFORMSTO INCREASE

REVENUE AND PROFITS

Bob Fitzgerald

INDEX BY CATEGORY

Food/Beverage • Snack Nuts: Flavor House Products • Foodservice Trade: Coca-Cola • Beverage Merchandising: Coca-Cola • Confections: Brach’s • RTE Cereal: General Foods Post Cereals • Instant Breakfast/Breakfast Bars: Carnation • Frozen Seafood: Van de Kamp’s HBA • Shampoo: Johnson & Johnson

INDEX BY CATEGORY

Lifestyle • Cameras/Film: Polaroid • Consumer Papers: HammerMill • Digital Photography: Jet Print Photo • Crafting: Invent It! Automotive Aftermarket • Intelligent Parts: Coni-Seal Promotions/Sponsorships • Liberty Bowl Football Classic: AutoZone • NASCAR: AutoZone • Christmas Promotion: Polaroid/Delta Airlines • Summer Cup Promotion: Coca-Cola/MTV

CASE HISTORIES• Flavor House Products• Johnson’s Baby Shampoo• Polaroid Sun Camera and 600 Speed Film• Polaroid Christmas Promotion With Delta Airlines• Coca-Cola Foodservice Trade Marketing• Coca-Cola Beverage Merchandising At Foodservice Retail Outlets• Coca-Cola Summer Cup Promotion With MTV• International Paper HammerMill Paper• International Paper Jet Print Photo• International Paper Invent It!• Brach’s Gummi Candy Corn• Carnation Instant Breakfast and Breakfast Bars• Van de Kamp’s Frozen Seafood• General Foods/Post Cereals Grape Nuts Flakes• AutoZone Sports Marketing• Coni-Seal IntelligentParts

Flavor House Products, Inc.

Flavor House Products

• SITUATION / EXISTING PLATFORM– Flavor House had enjoyed consistent sales growth,

however, attainment of profit objectives had beeninconsistent

– Peanut products yielded only small profits, sometimes losses

• Peanuts were a required part of the “full line requirement”to gain and maintain distribution at retail accounts,certainly not a “discretionary” item

• Peanuts were 40% of Flavor House sales


• NEW PLATFORM– Developed new, higher margin, “added value” peanut items

• Party Mix (peanuts + sesame sticks + pretzels + reusable container)• Double Roasted, Honey Roasted Peanuts (preferred Vs. Eagle, Planters)• Mug ‘O Nuts (packaged in reusable beer mug with licensed sports logos)

– Improved margins on total product line• Nitrogen Flushed packaging process enabled plastic jars (Vs. glass) and composite

cans (Vs. tins)• Significantly reduced shipping weights• Environmentally friendly (e.g., PET plastic)• Consumer friendly (lighter weight, non-breakable)

• Christmas Gift Packs (2 or 3 cans in a decorative gift box)• Bag line (entrée to single serve snacking and baking nut segments)• Export sales• Opportunistic buying strategy, especially for cashews and mixed nuts


• RESULTS– Sales increased 57%, from $47 million to $74 million– Achieved record net income of $3 million (4.3% net sales)

in year prior to sale of company– Sold Flavor House for 10x return on equity investment

Johnson’s Baby Shampoo

Johnson & JohnsonBaby Shampoo

• SITUATION / EXISTING PLATFORM– Narrow target audience niche of infants and mothers

of infants– Brand relegated to shelf position in infant section of

F/D/M stores– Advertising restricted to “baby books” and other

magazines with concentrations of new/expectantmothers

– Research indicated “no more tears” formula providing“baby gentleness” attribute resonated with other HHmembers


• NEW PLATFORM– Segmentation strategy targeted four new demographic platforms:

adult women, teenage girls, adult men, and women 50+– Same core attribute (baby gentleness), leveraged differently to

each target group, promised highly meaningful and relevantbenefits specific to each…

• Adult women: soft, shiny, bouncy hair• Teenage girls: won’t cause split ends like harsher shampoos• Adult men: frequent shampooing from active lifestyles won’t hurt hair• Women 50+: helps brittle, damaged hair look healthy

– Media strategy reflecting media habits of each demo– Dual distribution at retail (adult HBA and infant sections)


• RESULTS– Replaced P&G’s Head & Shoulders as the

#1 brand in the total shampoo category– Segmentation strategy featured as a Harvard

Business School case history

Polaroid Sun Camera&

600 Speed Film

Polaroid Sun Camerasand 600 Speed Film

• SITUATION / EXISTING PLATFORM– Instant imaging enabled immediate sharing of

photos, making these moments more enjoyable.This differentiated brand from other photographysystems.

– Original camera models achieved broaddistribution but were plagued by quicklydeclining film burn because of…

• Toy-like perception• Picture quality lacked sharpness• Usage occasions primarily limited to indoor

special events


• NEW PLATFORM– Sun Camera

• Black body design resembling hi-tech electronics• User friendly, advanced features including auto flash and auto

focus– 600 high speed film, in combination with advanced camera

electronics, created a “Light Management System” for clear,sharp pictures

– Television advertising with star presenters Jim Garner andMariette Hartley

• Reinforced Polaroid core value of instantly sharing the momentover again

• Promised “a piece of the sun” with every exposure to properly lightevery photo indoors and outside

– Magazine advertising emphasized the engineering details ofthe “Light Management System”


• RESULTS– Clearer, sharper photos, inside and outside– Significantly increased film burn– $500+ million total sales– TV campaign awarded “Campaign of the

Year” by Advertising Age

Polaroid Christmas PromotionWith

Delta Airlines

POLAROIDCHRISTMAS PROMOTION

WITH DELTA AIRLINES

• National Promotion Strategy– Offer: With qualifying purchase of Polaroid camera or

film, get a free companion ticket with purchase of oneticket on Delta Airlines

– Network television advertising featuring Polaroid starpresenters, Jim Garner and Mariette Hartley

– POS counter cards with tear-off coupons at retail– Tie-in advertising with retailers


WITH DELTA AIRLINES• Polaroid “win”

– Provided significant added value to consumers atminimal incremental cost

• Consumer added value > purchase price of camera or film• Secured Delta tickets in exchange for production cost of

one custom TV spot (celebrity talent already undercontract) and reallocation of small share of previouslybudgeted brand image holiday television plan

– Leveraged peak sales seasonality of gift giving, holidayseason

– Increased holiday sales 12% Vs. prior year


WITH DELTA AIRLINES• Delta Airlines “win”

– Leveraged award winning Polaroid advertising and starpresenters to increase Delta brand awareness

– Financial commitment limited mostly to using undercapacity seats

Coca-ColaFoodservice Trade

Marketing


Marketing

• SITUATION / EXISTING PLATFORM– CCUSA had a differentiating sales story based on…

• Syndicated and proprietary data documenting it hadleadership (#1) brands in the most popular soft drinkflavor categories…over 20 million drinkers a dayconsuming Coke brands at U.S. Fountain outlets

• Superior fountain dispenser technology• Outstanding service programs

– But long term contract negotiations were still beinginfluenced too much by pricing despite thedifferentiation of Coke’s brand leadership andtechnology/service programs

– Meanwhile, PepsiCo was expanding ownership in,and share of sales from, Quick Service Restaurants


Marketing

• NEW PLATFORM– Changed the competitive playing field with an aggressive

trade advertising and sales collateral campaign,“Commitment…Not Competition”

– Leveraged proprietary and syndicated data to documentleadership position of Coca-Cola Classic, Diet Coke, andSprite in the sugar cola, diet cola, and lemon lime categoriesin Fountain outlets

– Utilized data from PepsiCo Annual Report to demonstratePepsiCo was competing for the total restaurant sales andprofits of the same foodservice operators it was sellingfountain drinks to


Marketing

• RESULTS– Burger King account went to Coca-Cola– Pepsi Fountain new account growth stymied– Factor in PepsiCo divesting restaurant system into Yum

brands

Coca-Cola Foodservice Trade Marketing

Coca-Cola Foodservice Trade Marketing

Coca-ColaBeverage Merchandising

AtFoodservice Retail Outlets


At FoodserviceRetail Outlets

• SITUATION / EXISTING PLATFORM– Primary consumer messaging media for CCUSA

Fountain was in-store merchandising– Since allocation of space to CCUSA was obviously

secondary to the foodservice account brand,merchandising space was limited

– So, how could CCUSA increase the merchandisingspace available and the message impact for itsmultiple strategies?…

• By point of purchase (drive-thru, carry out, eat-in)• By daypart (breakfast, lunch, dinner, snacks)• Oz. per transaction (large cup merchandising)• Purchase incidence (combination meal merchandising)



• NEW PLATFORM– New locations to place CCUSA signage without decreasing space

available to host foodservice account brand• Drive Thru: menu boards, light posts, driveways• Inside: windows, counters, ceilings, cash registers, crew

– New merchandising “hardware”• Drive Thru: menu board extenders, free-standing banner stands, and

light post banner fixtures• Inside: counter cards, ceiling danglers, cash register flags, employee

buttons, window static clings, “Coke & Ice” directional signs(convenience stores) and static clings

– “Coke &” Campaign “software”• Mnemonic design element which standardized POS/collateral within a

common campaign theme and design treatment



• RESULTS– Contributed to 12% annual revenue growth

New Merchandising “Hardware”

“Coke &” Campaign “Software”

Coca-ColaSummer Cup Promotion

With MTV

COCA-COLASUMMER CUP PROMOTION

WITH MTV

• National Promotion Strategy– Offer: Peel-off game coupon with purchase of 32 oz

game cups at fountain outlets provided consumers withchance to win prizes instantly or major prizes announcedlive on MTV

– Television advertising produced by MTV featuringcomedian Rob Schneider

– POS produced by Coca-Cola featured at foodserviceretail outlets

– Prizes supplied by co-sponsors (Pontiac, Panasonic,American Airlines) in exchange for sponsorship credits onMTV advertising/programming and Coca-Cola retail POS


WITH MTV

• Coca-Cola “win”– Leverage peak beverage sales summer seasonality– Promote sales of large size cups– Increase share of youth market by leveraging MTV

image and audience franchise– Cost of major event limited to POS and game cup

production– Increased same period sales 8% vs. prior year


WITH MTV

• MTV “win”– Expand viewership of youth target market by

leveraging…• youth summer traffic at foodservice outlets• Coca-Cola brand image


WITH MTV

• Co-Sponsor Prize Suppliers “win”– Increase awareness against youth target market– Leverage hip image of MTV– Association with prestige of #1 global brand, Coca-Cola

International PaperHAMMERMILL


• SITUATION / EXISTING PLATFORM– Home & Office Paper Division lost $40 million net income– Sales heavily weighted (90%) in favor of low margin,

commodity paper (copy paper)– Traditional category practice was to merchandise papers

according to type of printer used (e.g., copy machine, inkjetprinter, laser printer)

– Research indicated consumer was confused “in a field ofreams” about how to shop the section

– Research also revealed the “aspirational” SOHO (smalloffice / home office) target audience was willing to spendmore for better results if they better understood the selectioncriteria


• NEW PLATFORM– New line of papers designed to maximize performance based on

intended use Vs. type of printer used• E.g., “Presentations & Proposals” vs. commodity copy paper

– Primary packaging emphasis on intended use application;secondary emphasis on printer used

– Tested new planogram with Staples re-setting the HammerMillarea of the section according to intended use

– Educational point-of-sale– Media plan utilized TV, print, direct mail, direct response TV,

loyalty magazine, and vertical industry magazines


• RESULTS– HammerMill value added sales increased

$41 million– Contributed to improved margin mix for The

Home and Office Paper Division• Total Value Added sales increased from

$82 million to $165 million• Total Net Income improved from $40 million

loss to +$10 million profit

HAMERMILL BRAND STEWARDAS REPORTED IN

OFFICE PRODUCTS INTERNATIONAL, JUNE 2001

International PaperJET PRINT PHOTO


• SITUATION / EXISTING PLATFORM– Research projected that digital photography

would replace traditional film process as mostpopular format [and it did]!

– First to market companies (HP, Kodak)introduced specialty paper for printing digitalexposures on home PC but only offered onestandard paper grade (“Premium”)


• NEW PLATFORM– Developed products for new platform of digital vs. film

photography– Borrowed learnings from HammerMill research regarding

appeal of customized papers by intended use applicationand developed papers for four different uses

• Proofing• Multi-Project --> “good”• Premium --> “better”• Professional --> “best”

– Media campaign utilized TV, vertical print (PC andphotography enthusiast) and high end print targetingaffluent, early adopter males


• RESULTS– $18 million sales– Gross profit margins by item

ranging from 25% to 45% Vs.average copy paper marginsof 12%

International PaperINVENT IT!


• SITUATION / EXISTING PLATFORM– PC printers were viewed exclusively as

equipment to print “papers”– Crafting industry was experiencing rapid

growth


• NEW PLATFORM– Positioned PC printers as equipment that could produce “media”,

not just 8 1/2” x 11” “papers”, with new output including…• Greeting cards• Invitations• Calendars• Scrap Books• Banners

– Advertising included vertical print (PC and crafting enthusiast) andwomen’s magazines targeting gatekeeper mothers

– Dedicated website and loyalty magazine to communicate variety ofcrafting activities

– Sampling program with The Learning Company (software) tolaunch retail distribution


• RESULTS– $10 million sales– Gross profit margins by item ranging

from 30% to 45% vs. average copypaper margins of 12%

Brach’sGummi Candy Corn

Brach’s

• SITUATION / EXISTING PLATFORM– 36% of Brach’s sales from seasonal items– Halloween represented 44% of Brach’s seasonal sales– Candy Corn

• Iconic shape representative of Halloween candy• Brach’s was segment leader with 77% share• But candy corn category only had 11% HH penetration and 2%

growth Vs. YAG• Candy Corn is a “Candy Dish” item appealing to adults (adults =

90% of Brach’s; 10% of Category)• But “Trick or Treat” represented 90% Category sales and only

10% Brach’s– Gummi candy

• YAG Category Halloween sales of only $8 million but 47% growth• Unlike candy corn, enjoys significant year long sales (15% growth vs.

YAG on full year basis)• Appeals to kids• “Trick or Treat” item

Brach’s

• NEW PLATFORM– Combine iconic shape of candy corn

with taste and texture of gummi candy =“Gummi Candy Corn”

– Package in 60-count “Treat Packs” forHalloween “Trick or Treating”

Brach’s

• RESULTS– Highly successful trade sell-in for Halloween ‘08– Intended to:

• Leverage and grow Brach’s leadership andequity in candy corn

• Support extension of Brach’s consumer franchiseto younger audiences

• Grow Brach’s share of “Trick of Treat” sales• Leverage popularity and growth trend of gummi

candy

Carnation Instant Breakfastand Breakfast Bars


• SITUATION / EXISTING PLATFORM– Brands originally launched with convenient breakfast

nutrition positioning– Uniqueness of positioning challenged over time by

other “portable” food items, e.g., granola bars, whichalso provided more appealing taste

– Research indicated “flavor boredom” was becomingan increasingly significant dislike among users

– While Carnation enjoyed a dominant segment sharein the 70% range, sales were steadily declining


• NEW PLATFORM– Repositioned both brands by switching primary

benefit emphasis from convenient nutrition tovariety of great tastes

– Line extended both brands with new, moreenticing flavors

– Developed new packaging and advertising tocommunicate the excitement of new flavors andoverall taste satisfaction


• RESULTS– Modest sales growth replaced

years of declining sales

Van de Kamp’sFrozen Seafood


• SITUATION / EXISTING PLATFORM– Research indicated significant dislikes of frozen

seafood among non users and also infrequent users• Soggy texture• Bland taste

– Dislikes were obstacles to growing sales from a kidfinger food niche to a broader franchise as an adult /all family entree


• NEW PLATFORM– Developed two new formulations

• “Batter Dipped Fillets” provided crunchytexture in new shape/cut (fillets) morecommensurate with entrees than prevailingplatform (fish sticks)

• “Zesty Italian Seasoned” line leveragedlearning from review of menus from Italian andSeafood restaurants which had a largepercentage of seafood entrees linked to Italianrecipes using zesty spices and sauces


• RESULTS– Van de Kamp’s grew to #3 national brand

from regional, west coast beginnings

General Foods/Post CerealsGrape Nuts Flakes


• SITUATION / EXISTING PLATFORM– Flagship product, Grape Nuts, developed unique

positioning based on “natural goodness” productformulation and celebrity endorsement by EuellGibbons

– Research indicted hard texture of Grape Nutskernels narrowed brand appeal to mostly men


• NEW PLATFORM– Grape Nuts Flakes featured a “flake” formulation

with a softer texture for greater appeal to women– Grape Nuts Flakes fortified with supplemental

nutrients (e.g., iron) appealing to specific needs ofwomen

– Continued to leverage “natural goodness”heritage of flagship but used campaign featuring“today’s modern woman” vignettes Vs. flagship’scelebrity personality

– Media mix for line extension targeted femaleoriented media and programs


• RESULTS– Achieved test market objectives

and expanded distribution

AUTOZONE SPORTSMARKETING

• AUTOZONE LIBERTY BOWL FOOTBALL CLASSICACTIVATION STRATEGY– Generate media impressions

• Sponsorship television package with ESPN national coverage• Indirect media (e.g., sponsor name mentions)• On-site (stadium merchandising)

– Headquarters community leadership– Customer entertainment– Store manager recognition– Spot market promotional tie-ins (Memphis, two competing teams’

home markets)

• NASCAR AUTOZONE ELITE DIVISIONACTIVATION STRATEGY– National Promotions

• Coca-Cola• NASCAR Day

– Promotion tie-ins with track operators (racediscounts at AZO stores)

– AutoZone Commercial Sales Contest– AutoZone Commercial Customer entertainment– Bounce-back coupons distributed at track– Generate media impressions

• On-site (stadium merchandising)• Sponsorship cable television package• Indirect media (e.g., sponsor name mentions)

– Store appearances / tie-in promotions

• Results– Autozone sports marketing program

generated incremental sales of over$20 million

Coni-SealIntelligentParts

• SITUATION / EXISTING PLATFORM– Coni-Seal product line heritage

• Value Brand perception and pricing• Lower margins typical of a commodity product sold

mostly as customers’ private labels

• NEW PLATFORM– Develop new, proprietary, premium brand

• Differentiate with added value features improving on OE• Provide higher margins vs. current Coni-Seal brand

– Positioning• “The Installer Friendly” brand which improves on OE by providing “smart

solutions” to installers so they can “work smart” and provide “smart maintenance”to an educated vehicle owner

– Benefits:• Allow installers to “Do A Better Job Faster” to reduce lift time and comebacks• Longer car life, better road performance and safety for the owner

• RESULTS– Developed comprehensive launch plan including

• Installer research, internal brainstorming, product concepts• Logo, tagline, package design• Business and marketing plans

Package Design

Thank you!

• I am interested in– Full time general manager or senior

marketing positions– Part time consulting

• Please contact me at– Business Cel: 732-552-5582– [email protected]– [email protected]

Documents

Case Hist Presentation