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Kashi

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Page 1: Kashi
Page 2: Kashi

Table of ContentsSection Page Number

Executive Summary . . . . . . . 2

Situation Analysis . . . . . . . 3-6

Marketing Goals . . . . . . . 7

Target Audience . . . . . . . 8-9

Media Objectives . . . . . . . 10

Creative . . . . . . . . 11-12

Media Strategy . . . . . . . . 13

Media Execution . . . . . . 14-18

Promotions and Non-Traditional Efforts . . . 19

Budget . . . . . . . - 20-21

Appendix . . . . . . . . . 22

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Kashi is a division of the food gi-ant Kellogg’s that specializes in all natural food. Kashi products such all natural cereal and granola bars have gained popularity over the last 25 years. Recently Kashi announced the introduction of a new line of all natural frozen pizza.

Until this point Kashi frozen pizza has received minimal advertising exposure. Last year under $200,000 was spent on advertising the pizza line, and all of that money was used for online advertising. Despite it’s lack of promotion, Kashi frozen pizza reached $36 million in sales for 2008.

Kashi Executives have decided that Kashi Frozen Pizza represents a good opportunity for the growth of their brand, and have decided to promote it more actively.

The goals of this marketing cam-paign are to increase Kashi’s pizza sales 15% to $40 million, Increase public awareness that Kashi makes a frozen pizza, and improve Kashi’s brand image.

We will significantly increase Kashi’s web presence and also launch a tele-vision and cable television campaign in the spot markets that represent the greatest potential for growth. Internet and spot television were chosen because of the ability they give to focus on our target audience.

Executive Summary

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Situation AnalysisKashi History

Kashi began as a small company in Southern California. With their blend of seven whole grains and sesame seeds, Kashi set out to change how people eat to live a healthy life and forge their way into the health food industry.

Kashi introduced their all natural food in 1984 with Kashi Pilaf. The response to Kashi Pilaf was not what the company hoped it would be. Refusing to give up, Kashi soon introduced all natural, who grain cereal which gained a better response and even gained publicity at the 1984 Olympics.

Kashi continued to introduce new cereal and other health foods such as granola bars, shakes, waffles, and frozen entrees.

In 2000, Kellogg’s announced they

would buy Kashi to gain more ground in the health food industry.

Not only has Kashi introduced new whole grain products, they also have gone on annual tours to teach people about their diets and encourage others to include whole grains to their diets and issuing challenges to people to change their life for better with Kashi.In April 2007, Kashi announced that frozen pizza would be added to their line of all natural, whole grain food products. Now Kashi has five different frozen pizzas and over 50 other products stalking grocery store shelves.

Kashi shows no signs of stopping 25 years later. They will continue to create new recipes for optimum taste and nutrition.

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Situation AnalysisCompetitive Analysis:

DiGiorno“It’s not delivery. It’s DiGiorno.”

DiGiorno’s parent company is KRAFT Foods Inc. it is seen as one of the biggest competitors for Kashi frozen pizza. DiGiorno offers many different varieties in toppings, crusts, and also sizes. It has been around for over ten years. It is currently the top spender in advertising. All of its focus in advertising is using television and the internet.

Tombstone “What do you want on your Tombstone?”

Tombstone’s parent company is also KRAFT Foods Inc. KRAFT does not place as much of a focus on tombstone. It is also on the low side of advertising

spending. Most of the focus in advertising is in spot television and magazines.

California Pizza Kitchen

CPK’s parent company is also KRAFT Foods Inc. CPK is well-known for its nationally famous restaurants. CPK offers a variety of choices of pizza toppings and crusts, but only comes in one size. CPK’s advertising focus is on magazines and the internet,

Amy’s Kitchen

Amy’s Kitchen is a family business and has been around for over 20 years. One of Amy’s unique selling points is that is made with organic ingredients and is a healthy choice of pizza. Many of its us-ers are those that are trying to stay

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Situation AnalysisCompetitive Analysis:

healthy or loose weight. Much of Amy’s advertising focus is mainly in magazines.

Red Baron: “The One for everyone”Red Barons’ parent company is Schwan Foods Co. Inc. Red Baron pizza comes in a variety of toppings and crusts, and sizes. Red baron’s media focus consists of spot television, but mainly magazines.

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Situation AnalysisStrengths:

• Kashi is a sub division of food giant Kellogg’s.• Kashi Already has some name recognition because of products that it has had on the market for several years.• Many organic shoppers are more loyal than others.

Weaknesses:

• The cost of Kashi is significantly higher than many other frozen pizza brands.• Kashi Pizza’s association with the gritty Kashi Cereal might be a deterrent for some consumers.• Kashi Frozen Pizza has had minimal advertising exposure and will need to be treated as a new product.

Opportunities:

• Sales in the natural/organic food category are expected to raise 10% in the next year.• Families with children are likely to be heavy consumers of frozen pizza.

• Since the frozen pizza segment is small then there is a lot of room for growth.

Threats:

• Competition from traditional pizza stores and frozen pizza companies that offer lower prices.• As recession drives consumers to cut cost, organic food sales will slow.

• Competition from all-natural and organic pizza companies.

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Marketing GoalsKashi’s goals are to increase sales by 15%. This will increase the sales to $40 million. With the organic food market growing 20% a year this seems plausible. The category sales for frozen pizza this year are forecasted to increase around 10%. Because of this, not only are we trying to get new customers that are converting to buying natural and organic food but we also are trying to persuade other frozen pizza consumers to switch over to Kashi so we can reach our target of 15%. We also want to increase awareness that Kashi has a pizza line since Kashi is generally associated with cereal.

Increase sales by 15%Increase sales to hit the $40 million national sales goal.Increase awareness that Kashi has frozen pizza.Maintain national coverage.Improve brand image of Kashi- from healthy (gritty) cerealFind new customers and converts from other frozen pizza brands.Make available across the countryHit reach of 75Hit frequency of 3.5

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Target AudienceThe target market for the new healthy frozen pizza should be young white families with children.

Indians are more likely to use frozen pizza, but there are not very many of them. If Hispanics consume pizza, they are likely to be heavy users, but they are significantly less brand loyal and there are fewer of them. White people consume a large amount of frozen pizza, and there are a lot of them. (Mediamark)

The Target age range is 25 - 49 Data from Mintel’s new report on pizza shows that younger people 18-34 are far more likely to consume all pizza products, with over 60% of them having consumed frozen pizza in the last 3 months.

We will target women because while women and men in the target age range are likely to consume frozen

pizza, women are slightly more likely to use frozen pizza products, and they are more health conscious, and they are also more likely to be the primary food purchaser. Women are also 30 - 40% more likely than men to have purchased a “healty frozen pizza” like lean cuisine or healthy choice. (Mediamark)

Mintel shows that larger families with children are also more likely to consume frozen pizza. 70% of children consume frozen pizza. The average consumption rate of frozen pizza for children is 4.5 times a month. According to Mintel, households with 3 or more people living in them are more likely to eat frozen pizza than those who live alone or with one other person. The convenience of frozen pizza appeals to larger families. Data shows that the larger the family is, the more likely they are to consume frozen pizza. (Mintel. Pizza, Jan 2009)

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People who have at least a high school diploma and/or some college education are more likely to be heavy users of frozen pizza products. Television is a good medium to advertise frozen pizza. Television viewers appear to be more likely to use frozen pizza overall, especially channels that appeal to families and young adult viewers. ABC Family, Music television, ect. (http://ureporter.mriplusonline.com/selectdemo.asp)

Summary:

• Age: 25-49• Gender: Female• Marital status: Married• Children: Yes• Race: White• Education: High school / Some College• Preferred Media: Television

Target Audience

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Media ObjectivesOur media objectives were established by utilizing the Ostrow Model to determine the reach and frequency.

We determined that Kashi Pizza requires moderate reach and high frequency. Kashi Pizza is a less established brand and is in the lower half of its category with strong competition, Kashi also has a low market share and Kashi will be advertised using a flighting schedule.

• Reach: 80% January. 75% April, June, August• Frequency 3.5%• GRP’s: 262.5• Budget: 8 percent of sales. 2,880,000.

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Creative BriefWho?

The target audience for Kashi frozen pizza is a young, married, Caucasian, couple in the 25-44 age demographic. They are both high school graduates and have completed at least some college. The Husband is a Professional occupation and they have a household income of $50,000 – $75,000. They have 2-4 children. The Primary audience will be the wife.

Why?

Research shows that Young people in the 25 - 49 age range are more likely to consume pizza products than other demographics. The presence of children in the home significantly increases the likelihood that a family will consume frozen pizza.

70% of children consume frozen pizza and the average consumption rate is 4.5 times a month. The convenience of frozen pizza is appealing to larger families; data shows that the larger a family is the more likely they are to eat frozen pizza. The focus will be primarily on the wife because, not only is she more likely to be the primary food purchaser, she is also significantly more likely to purchase “healthy” food products.

A Woman’s maternal instincts could also draw her to purchase Kashi. Women naturally have the desire to care for and protect their children and families; this includes seeing that they are healthy and fed nutritiously.

What?

Kashi all natural frozen pizza is made with Kashi’s signature blend of Seven Whole Grains & Sesame® with flax

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Creative Briefseed. The pizzas are topped with real, wholesome ingredients - things like fire-roasted vegetables, tasty cheeses and all natural chicken. Kashi® All Natural Original Crust Pizzas are a wholesome and convenient option, and are available in your local grocery store.

Position?

We will position Kashi frozen pizza as the all natural pizza that the whole family will enjoy.

Purpose?

We want to increase Kashi’s frozen pizza sales by attracting consumers from other brands and getting them to try a Kashi frozen pizza.

Tagline: “Kashi - Pizza for the Natural Family.”

Where?

The advertising will continue to run nationally on the internet, we will also be using television and cable in our spot markets. Television networks and channels will be chosen on several viewer characteristics; High frozen pizza users, users of “healthy” frozen products like healthy choice and lean cuisine, and users of other Kashi products. Within those categories we will target the channels that are likely to be viewed by our target audience.

What Style or Approach?

The Advertising should be targeted to the mother and oriented around the family. The advertising should communicate the health benefits of feeding you family natural food products, as well as the convenience and ease of serving Kashi frozen pizza for dinner.

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A combination of national and spot advertising will be used for our Kashi campaign. National advertising will continue with Kashi’s current internet advertising strategy. Most of our budget will be spent on spot television and spot cable advertising. This choice was made based on high CDI’s with room for the brand to grow in our spot markets.

We will be using a flighting schedule, advertising in January, April, June and August. This decision was made based on when Kashi’s competitors are advertising lightly, giving Kashi more voice in those months.

We chose our spot markets by choosing the high CDI and BDI’s and women age 25-49 in those areas with the highest EV percentages weighted at 1.5.

Media StrategyWe chose the top 20 markets which are: Indianapolis, IN, Ft. Wayne, IN, Lexington, KY, Charleston-Huntington, WV, Des Moines, IA, Flint, MI, Omaha, NE, Springfield, IL, Paducah, IL, Cedar Rapids, IA, Sioux Falls, SD, Wichita-Hutchinson, KS, Lincoln, NE, Davenport, IA-IL, Evansville, IN, Johnstown-Altoona, PA, Peoria-Bloomington, IL, Fargo-Valley City, ND, La Crosse-Eau Claire, WI, Amarillo, TX.

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According to MRI research, heavy frozen pizza consumers as well as consumers of Kashi watch television regularly therefore the traditional media used will be spot television and spot cable. We chose to advertise on television that Kashi cereal consumers watch as well as television with high index numbers of people who buy Healthy Choice and Lean Cuisine Pizza. These customers have potential to try Kashi Pizza as they already eat healthy frozen food and Kashi products. We will also advertise using spot television that heavy frozen pizza eaters watch because there is potential for these TV viewers to buy Kashi pizza.

Media Execution

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Spot TV programs:High Kashi cereal and Healthy/Choice/Lean Cuisine consumers

High frozen Pizza consumers

Media Execution

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Cable Networks:High Kashi cereal and Healthy/Choice/Lean Cuisine consumers

High frozen pizza consumers

Media Execution

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As well as television advertising we will continue to use internet advertising that Kashi has been using for national advertising. MRI data supports that Kashi cereal consumers have broadband or high speed internet and access the internet at least two times a day. We will use banner advertising and key word searches.

• weatherbug. com (index 123)• imdb.com (index 119)• iVillage.com (index 133)• moviefone.com (120)

Media Execution

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Media Execution

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For the non-traditional portion of our campaign we will use internet bloggers to focus in on our target audience. We will select blogs and bloggers that are popular with women in our demographic and encourage them to promote Kashi Frozen Pizza in their blogs. The bloggers who choose to participate, will be sent packages containing information on Kashi frozen Pizza, as well as coupons for free pizzas. The bloggers will be instructed that they may write whatever they wish about the product, positive or negative, so long as they try the product and write about it.

Promotional and Non-Traditional Media

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Budget

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BudgetThe budget for Kashi‘s frozen pizza campaign will be $2,880,000, 8% of the pervious years 36 million dollar sales total.

The average Profit margin for frozen pizza products is 32.2%. By setting aside 8% of sales for an advertising budget, Kashi is left with a profit margin of 24.2%.

Kashi is a brand that is not well, know outside of their current clientel and Kashi frozen pizza is a new product. Because of these factors it is necessary to spend a greater amount of money to launch the brand and the product.

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Appendix

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