Upload
jacob-cook
View
58
Download
3
Embed Size (px)
Citation preview
Non-Dairy Milk, an Industry Analysis Industry History Globally, 16.9% of milk consumed by humans comes from species other than cattle. Non-cattle milk is linked more to territories than cow's milk: sheep in the Mediterranean basin, horse in Central Asia, yak in Himalayas, camel in desert regions. These links contribute to the building of dairy ecosystems including specific dairy species, traditional products, farmer know-how, landscape maintenance, cultural activities, market sectors and identity markers. According to the variability of milk composition, nutritional and medicinal properties (true or postulated) could be potentially an important added value for producers and dairy sector. Most of non-cattle milk production occurs in emerging or developing countries where population growth and protein demand are increasing. It is not necessary to adapt the western model for intensive dairy production (Holstein-soya-silage) - non-cattle dairy systems, whether intensive or not, appear to be a sustainable alternative to meet the increasing demand both in terms of quantity and quality.
Industry Size and Growth
The dairy alternative market in U.S. is expected to mark a growth of 13.2% between 2015 and 2018 based on the strength of diversification in market,” says Shivani Mishra, research analyst in the food & beverage domain for MarketsandMarkets. “In 2015, the U.S. market size of dairy alternatives is estimated to be worth $2.09 billion and is one of the largest markets in the North American food & beverage industry.” As far as the global market, it’s projected to reach about $19.5 Billion by 2020, growing about 15.5% from 2015 to 2020.
Only 15 businesses join the dairy alternative market. With Almond Milk being the people's’ favorite as of lately, the growth for this particular product makes the Sales Increase exponentially. Gains in dollar sales of all almond milks in the U.S., which increased more than 46 percent in the 12 months ended July 26. Almond milk is now an almost $738 million business, and the nutty drink has replaced soy as America’s preferred plant-based milk. Soy milk sales were only $341.1 million for that period, and have been declining for years. Recent Industry Advancements Advances in membrane technology, microbiological techniques and analytical testing help the dairy industry produce new products, improve processing efficiency and gain greater control over manufacturing processes. Government Regulations All non-dairy milk products must comply with all FDA regulations in Title 7 sec 210.10(m)(3). Standards must be met in terms of vitamins, calcium, protein, potassium, magnesium, and phosphorus to be considered a fluid milk substitute. Non-dairy milk must also meet all labeling requirements specified in the code of federal regulations (CFR) title 21. This indicates that all ingredients are to be recorded on the label by their specific name.
Sale growth of all Non-dairy Milks.
Channels of Distribution Non-dairy milk products are mostly sold in grocery stores but are sold in some drug stores such as Walgreens, which target more of the healthier food shoppers. Manufactures of non-dairy milk products typically sell their products directly to the retailer for resale to the consumer. Industry Segmentation Consumers often have drastically different views on the industry. Vegetarians tend to view the industry more positively then non-vegetarians. Vegetarians typically look more into how the non-dairy milk isn’t produced from cows but often from some type of plant or soybeans. They believe that they’re receiving more calcium, however studies indicate that it takes 25 grams of soy a day which is equivalent to four or five soy products. Non-vegetarians typically don't consume it as often because they don't see the loss of vitamins in soy milk to be worth losing. Also many consumers don’t prefer the taste or price of non-dairy milk. Dairy milk is sectioned at stores mainly by the percentage and comes in much larger sizes such as gallons and half-gallons etc. While non-dairy typically only comes in carton sizes and is sectioned by the more flavor options such as strawberry, vanilla and many others. Also dairy milk receives a much larger section of the floor space compared to the non-dairy milk. Consumer Demographics Gender Demographics:
Gender % of total population Index
Male 6.9% 95
Female 8.4% 105
Total 15.3% 100
Looking at consumption of non-dairy milk, from the 15.2% of the population that consume the product, women have a slight edge over men when it comes to the end user. Age Demographics:
Age % of total population Index
18 – 24 2.0% 101
25 – 34 2.6% 100
35 – 44 3.0% 113
45 – 54 3.0% 107
55 – 64 2.8% 110
65+ 2.0% 71
Total 15.3% 100
Analysis shows that the end user of non-dairy milk lean toward middle aged Americans. However, the demographics are close enough to consider most ages to be somewhat apart of the target market.
Income Demographics:
Household Income % of total population Index
Less than $25,000 2.7% 100
$25,000 – $49,999 3.3% 97
$50,000 – $74,999 3.0% 109
$75,000 – $99,999 2.3% 113
$100,000 – $149,000 2.2% 91
$150,000 – $ 250,000 1.4% 98
More than $250,000 0.4% 80
Total 15.3% 100
Analysis shows that household income plays a role in consumption. The non-dairy product is moderately more expensive than typical pasteurized dairy milk. However, those with moderate to upper moderate incomes set the base for end users. With upper class demographics, there is a sharp drop. Reseller Demographics Stores
Store Type # of Stores % of Total
Grocery Store 107,949 30.4
Drugstores 67,393 19
Convenience Stores 123,318 34.6
Mass Merchants 56,603 16
Total 355,263 100
Analysis shows that Grocery and Convenience stores have the most stores that sell non- dairy milk.
Size
Size in Sq. Ft. # of Stores % of Total
0- 2,499 80,556 27
2,500- 9,999 98,039 32.8
10,000- 39,999 56,747 19
40,000+ 63,218 21.2
Total 298,560 100
Analysis shows that most stores that sell non-dairy milk are approximately 0 to 9,999 square feet. By Sales
Sales in store # of Stores % of Total
< 1 million 83,569 27.8
1-2.5 million 101,193 33.6
2.5-5 million 49,936 16.8
5-10 million 27,013 9.0
>10 million 38,687 12.8
Total 300,398 100
Analysis shows that these stores have most of their sales from 1 to 2.5 million dollar, with sales from under 1 million not far behind.
By Geographic Location
Region States # of Stores
Midwest North Dakota, South Dakota, Nebraska, Kansas, Missouri, Illinois, Indiana, Ohio, Michigan, Wisconsin, Minnesota
58,362
Southeast Louisiana, Arkansas, Kentucky, Tennessee, Mississippi, Alabama, Georgia, West Virginia, Virginia, Maryland, South Carolina, North Carolina, Florida
95,410
Rocky Mountains
Montana, Idaho, Nevada, Utah, Colorado, Wyoming 10,459
Northwest Washington, Oregon, Alaska 8,812
Southwest Arizona, New Mexico, Oklahoma, Texas 33,870
Northeast Connecticut, Maine, Massachusetts, New Hampshire, New York, New Jersey, Rhode Island, Vermont, pennsylvania
48,676
The Southeast region has the largest amount of stores. The midwest and northeast are the regions that have the next highest amounts of stores, being a little more than half of the southeast.
Competitive Environment Silk Silk first began with an idea to start up a tofu company. Later they realized the importance of a plant-based diet. In Boulder, Colorado Silk had caught the eyes of many different people. In 1977 an investor pitched in $2,000 to help get their idea going. They tried all different types of products in a plant-based diet, even hot dogs. In 1978, their products hit the stores. Today, silk is one of the most recognized plant-based products. Branding Silk is branded as an all plant-based competitor. They take pride in adding no artificial colors or flavors into their products. Silk is branded as a dairy free product with no high fructose corn syrup. Positioning To the customer, Silk is a nondairy product that is plant-based. Silk is seen as a healthy choice to customers because they do not add artificial products into their products. Differentiation Silk differentiates their products by making products that have no artificial products in them. They also differentiate their products by offering a wide variety of nondairy and plant based products. Four P’s Product Silk offers many different plant based products. They offer soy milk, coconut milk, almond milk, and many more. The products from Silk are all plant based with no artificial products included. Place Silk is not sold in small convenient stores. It also is very rare to find a silk product at a drugstore, such as Walgreens. Silk is easily found in supermarkets and grocery stores. Price Like Silk’s competitors, Silk is priced higher than the dairy products and the products that are not all plant-based. Relative to their competition, Silk is priced lower. Silk prices average around $2.49. Silk has captured 20% of the market share. Promotion Silk offers many different coupons that are available that help get their name out. There are also few TV ads that have silk promotion in them. Also, once the product is bought, it is likely that there will be a coupon for your next purchase of the product.
Lactaid The son of a farmer noticed that some had a problem with the digestion of lactose. He decided to try and help and a few years later, in the 1970’s, he had come up with products to help these people. In the 1980’s and 1990’s is when Lactaid really started to take off. Lactaid is now in their fourth decade and still the top choice for customers. Branding Lactaid brands itself by being real dairy but with an extra enzyme called lactase that helps those who cannot digest lactose products. They put a strong emphasis on their products helping the digestion of lactose attracting the customers who are lactose intolerant. Positioning In the customer’s view, Lactaid is a dairy product. Although, unlike other dairy products, Lactaid has the enzyme lactase to help the digestion of lactose. Differentiation Lactaid uses the view of still being a dairy product but being able to be consumed by those with a lactose problem to differentiate themselves. They give the customers an option to still get the lactose but not have the problem of digesting it. Four P’s Product The products from Lactaid are seen as a dairy product that allows them to have a lactose intake if they are lactose intolerant. Lactaid is the number one supplier for those who are lactose intolerant. Lactaid also has medication you can take to help the digestion of lactose. Place Lactaid is sold in large supermarkets along with grocery stores. You may possibly see Lactaid at a drugstore, such as Walgreens, but most likely not. Lactaid is not found in gas stations or rest stops simply because they do not focus on selling larger food products. Price Lactaid is priced higher than regular dairy products. It is also priced slightly lower than their competitors’ prices due to the fact that it is the most known and people often turn to the familiar product to buy. Lactaid averages at $4.09. Lactaid holds 70% of the market share. Promotion Lactaid often has coupons to promote their products. Another way that Lactaid sometimes promotes their products are with commercials but this is not often. They promote to those who have trouble digesting lactose products.
Organic Valley Organic Valley started in January of 1988 by a handful of farmers in southwestern Wisconsin. They had a small poster inviting the areas farmers to join the current CEIEIO, George Siemon, for a meeting about the Coulee Region Organic Produce Pool. They began by growing organic vegetables then added the organic milk to their list. They have now become one of the most recognized organic milk companies. Branding Organic Valley trademarked their name so no one else could take it if they became well known. They state that organic is all they do and their mission is to promote regional farm diversity and economic stability by the means of organic agricultural methods. They only sell certified organic products. Positioning Organic Valley is positioned as a fully organic product. It is compared by customers to Lactaid and Silk. It is all natural and is priced relatively close to its competitors. Differentiation Organic Valley uses the all-natural and organic view to differentiate themselves from the other non-organic companies. They seek out to those who want organic based products and make sure their products are certified. They offer a wide variety of products, like low-fat. More than just milk. They offer cheese. Four P’s Product Organic Valley’s products are seen as reliable and to most, worth the extra cost than non-organic products. They continue to come out with new ideas to try to give their customers more tastes to try. Although they may not be the first choice of organic products they are decently known. Organic Valley also offers products such as cheese. Place Organic Valley’s products are sold in large supermarkets and other grocery stores. It is very unlikely that these products will be seen at a drugstore or gas station. They are not sold in gas stations or drug stores because those stores do not focus on food sales. Price The price of Organic Valley products is more than non-organic products and also a little more expensive than other organic or non-lactose products. The average price of Organic Valley milk is $5.35. Organic Valley has captured a small portion of the market share at 7%. Promotion There are not many coupons that are available for Organic Valley products. The customer more than likely has to buy the product in order to get a coupon for their next purchase. There are also not many advertisements for Organic Valley’s products.
Almond Breeze Almond Breeze was not very familiar until the 2000’s but has been around for over one hundred years. Blue Diamond Almond growers are the farmers who grow the almonds that are used to make the almond milk. Branding Almond Breeze has branded itself as all natural and nutritious. They have been branded as a milk that has been made with the customer in mind. They are also branded as a pure, smooth, and delicious blend. Positioning Almond Breeze is positioned in the customer’s mind as nutritious and a way for those with lactose intolerance to still enjoy milk. They are positioned as priced relative to the competition. Differentiation They differentiate their product as all nutritious and delicious. They also differentiate their product by stating that it is made with the customer in mind. Four P’s Product Almond Breeze’s products are all nature and nutritious. They are made for the customer. They were not well known at first but have now become big. Place Almond Breeze is not sold in drug stores or convenience stores. It is sold in supermarkets and grocery stores. The brand is not sold often enough to be put in drug stores or in convenience stores. Price Almond Breeze is priced higher than regular milk. Compared to the nutritious milk for those with a lactose intolerance it is priced relatively close. They average of a price of $3.99. Almond Breeze has the lowest market share compared to its competitors, standing at only .5%. The rest of the market share is distributed throughout the small competitors. Promotion Almond Breeze has some promotion but does not have huge advertisements. They have coupons available but usually only after you already purchase a product of theirs.
Strategic Marketing Plan Overall Marketing Objectives 3 Year Sales Forecast:
Now 2016 2017 2018
Sales $405 million $465.75 million (~15% growth)
$535.6 million (~15% growth)
$616 million (~15% growth)
Unit sales 180 million 207 million (~15% growth)
238 million (~15% growth)
273.7 million (~15% growth)
# of dealers/ stores
37,500 Grocers with 8.5 items 22,800 drug stores with 3 items
37,500 Grocers with 8.5 items 23,940 drug stores with 3 items (+5%)
37,500 Grocers with 8.5 items 24,778 drug stores with 3 items (+3.5%)
37,500 Grocers with 8.5 items 25,521 drug stores with 3 items (+3%)
Quantitative: With numbers sales jumping up 45% in 2015, we project the sales to increase each year for the next couple of years to grow at an increasing rate. From this, we will increase our distribution each year as well. Coming up with new blend. Sticking to the plan and increasing promotional techniques as well as advertising in social media to help spread the word about our new products and our existing products. Qualitative: Silk non-dairy milk products have improved everyday life for our consumers. Providing extra calcium and other minerals regular milk cannot compete with but also other companies. We want Silk to stay at the top and be most people’s favorite brand. We want our business to be known for its health conscious, innovative ways, while we also help out in the community as well. Cultural values are shifting in a way that is positive for our company, so you can count on our service and products will be satisfactory. Critical Issues 1. The government may implement new FDA regulations on non-dairy milk products. 2. Implementing a new formula change may cause a loss of current loyal customers that are accustomed to the original product. 3. A new major competitor enters the market place, or an existing competitor creates a new flavor. 4. Safety recall on food products involved in non-dairy milk products. 5. A recession in the near future may cause consumers to switch to a store brand in an attempt to save money. 6. The acceptance of new products by the consumers and retailers.
Volume Justification 1. Marketing spending will increase spending by 28.3% versus the yearly average growth or $78.3 million on push/pull marketing.
Push (18% or $14 million) This incorporates increasing our television and in store advertising. Thus attracting new
customers to try the product. This also allows implementing of in store samples in an attempt to attract non customers into purchasing the product offered.
Pull (82% or $64.3 million) Spending our budget here will ensure that our new social network advertising and contests are
working correctly. This allows for consumers to visually see the brand on a regular basis and participate in an interactive contest.
2. We plan to create and implement 3 new flavors into the market place. 3. We also plan on expanding our distribution to more drug stores because we believe that the greater majority of people that drink our product are concerned with their health and therefore shopping more in these type of stores. 4. Expand product shelf space so that our product is more visible to the consumer passing by. 5. The industry is expected to be growing 13.2% from 2015-2018. Overall Marketing Strategy
With Silk, we plan to increase our overall sales year by year. With our incoming sales, we plan to take 15% of our revenues and invest it back into the company with promotions and new product introductions. We plan to implement a new formula for our product to provide the best combination of healthy alternative and great taste. We also plan to introduce new products in the very near future, consisting of new blends, new coffee creamers, and new balanced milk alternatives that can offer more protein or calcium. In turn, a 15% revenue reinvestment will help us expect to grow 15%. Our tactics are to provide an 18% push marketing to introduce our new products and an 82% pull marketing tactic to bring in more of our target consumers.
We plan to be prepared for critical issues that may arise and plan accordingly. We also plan to alter our current branding to give it a more appropriate and appealing logo/image that is perceived by the consumers. We also plan to adjust the packaging to complement the logo.
What benefits our consumers is the ultimate health difference between our products and the traditional dairy milk. Our products offer lactose free options for those who are intolerant but ultimately, our products are for anyone who seeks health conscious alternatives. We seek out to pull in the target audience that seeks our product the most as well as bring in more women and older consumers by penetrating more chain drug stores.
Finally, we plan to strategize with our product and price to maximize profits and draw in more consumers. We seek out to benefit our retailers with more profit which can naturally push our product by the retailer. We also strive to offer promotion benefits for our consumers such as coupon offerings. Different forms of advertising will also reach out to our consumers and draw them into trying our product.
Branding Silk’s ultimate goal is not only to sell their soy and other natural food products, but to ultimately
incorporate their healthy foods by making it regularly part of the American diet. Silk’s mascot for their assorted almond milks portrays an almond and plant character. This character who has been featured in many of their television commercials conveys a natural and environmental message to the consumers.
However, this character only expresses promotion for the almond milks rather than the company’s entire product line. We suggest this character be replaced by a more universal character that can start a new advertising campaign for Silk to promote all of the assorted plant-based milk products.
The name Silk provides a mental image of smooth, velvety, and soft. The current logo and packaging provides contrary depictions to the consumers. We propose a minor adjustment to the logo and packaging to convey a most appropriate mental image to our name and to our products. Overall Positioning and Differentiation Here at Silk, we strive for customer satisfaction and product excellence. Silk milk is a great tasting milk that is delicious by itself and perfect to cook with. It is loaded with six grams of heart healthy soy protein. Save the cows, drink Silk milk.
Silk milk offers a variety of different kinds of non-dairy milk as well as different flavors of soy and nut milk. Silk is a great tasting milk that offers 50 percent more calcium than dairy milk and 10 calories less than dairy milk. They both have the same amount of fat per serving. It is packed with essential nutrients and is a source of complete protein. We plan to differentiate ourselves from the others by coming out with some new Silk products, like an extra protein soymilk and more blends.
Target Audience Summary Silk focuses its marketing efforts on satisfying the needs of vegans and vegetarians, lactose
intolerant, dairy intolerant people, and people who like the health benefits. We plan to sell to mainly women with a wide range from 35 to 64 and younger females 18 to 24 with an average income of $50,000 to $100,000. By narrowing our target audience to women between the ages of 18- 24 and 35 to 64 our customer satisfaction, sales, and production will all increase. These women are likely to purchase silk milk in a grocery or drug store.
To get the most profit we want to increase sales in grocery stores and drug stores as well as in the National and Regional regions of the United States. We plan to sell in more drug stores like, Walgreens and Rite Aid, to attract more women and older folks. We also plan to maintain the number of grocery stores that we currently are in. Market Spending Summary Most of the spending will come from a push/pull marketing strategy. This will make it a combined 15% of our sales, which is approximately $78.3 million (push 18% or $14 million, pull 82% or 64.3 million) we will try a couple of promotional ideas that are relatively inexpensive and also will in turn pay for themselves. We will try new products that will cost to reformulate, research and distribute, but with how the market is progressing we are sure the ventures for the new products will pay off themselves as well. The research is for better advertising, improving our quality of product and also providing better location for distribution. Total Pull strategies:
Pull Strategies Amount % of Pull Strategy Spending
Total television commercials $53,590,000 83.33%
Total magazine advertising $1,625,269 2.56%
Total online advertising $2,069,000 3.21%
Total couponing $7,015,000 10.90%
Total Push Strategies:
Push strategies Amount % of Push Strategy spending
Total trade allowance $13,380,000 95.7%
Total new distribution $601,920 4.3%
Objectives and Strategies Product Objectives:
Maintain production of high quality, great tasting and nutritious milk alternative to maximize customer satisfaction.
Introduce at least three new products to our market Product Strategies:
Change the formula to increase sales and bring in new customers Develop a Silk Extra Protein to attract new consumer segments Create new blend options and new milk sources for a variety of tastes to attract new consumers Track product performance vs competition with target audience
Product Plans:
Creating a new coconut and almond blend. Creating a new cashew and almond blend. Creating a new strawberry flavor within the coconut/almond and cashew/almond blends. Creating a new extra protein drink to also attract those who are looking for more protein in the
product. Keep track of what products are performing well and which products are not by monitoring the
sales of each product. Tracking which products are performing well from our competitors by doing taste testing on a
quarterly basis. Test new flavors vs competitors to make sure we meet or exceed taste performance.
Price Objectives:
Maximize silk profit for company Offer a good price and value for consumers Continue profitability of brand for retailers
Price Strategies:
Price products at a premium price in comparison to dairy milk but a competitive price in comparison to non-dairy
Offer retailers a customary profit margin for category Consider a price increase in 2017
Price Plans:
Each retailer that sells our product will get a customary profit margin in order to ensure they will continue to sell our products because they will have a 25 % incentive.
While the economy changes, considering a price increase in 2017 is a good idea. The price increase will be by 2-3%. Current customers will know that compared to dairy milk we are already premium priced and if retailers like our product enough the small price increase will not hurt.
Currently our products are priced at $2.99 to $3.29. With our price increase it will raise our price range to $3.24 to $3.54.
Wholesale/retailer cost will be $2.25 per carton.
Place Objectives: Expand average distribution from 8.5 items to 10 items per grocery store Expand distribution of drug stores with 3.5 items to 5 items and from 38% to 50% of drug stores
Place Strategies:
Contact stores and offer a retailer discount for adding more items to their stores Focus on national and regional drug store chains
Place Plans:
Go to the drug stores we are already in contact with and try to get more of their stores within the chains to add our products to their shelves. If the store already sells our products we will try to get them to add more of our products to their shelves.
Present new distribution offers to major key accounts in grocery and drug stores. Offer new distribution allowances - see promotion for details - for grocery and drug stores.
Promotion Objectives:
Increase awareness of the brand/benefits and new flavors by the target audience Maximize consumer trial and repeat purchases Maximize retailer merchandise support Meet or exceed sales objectives
Promotion Strategies:
Utilize more television ads to reach out to a broader audience Convey radio ads at strategic times and channels to maximize audience coverage Offer high value coupons to generate trial and low value “on-pack” coupons for repurchase Offer more trade allowances to get more support from retailers Offer new distribution to current retailers and new items into stores Internet marketing and advertising with websites, social media, banner ads and more
Promotion Plans:
Parents Magazine will be ran in January, April, July and October with a low value coupon of $0.50.
Parents Magazine will have a full page, 4 color. Parents Magazine will have a circulation of 2,217,318. Health After 50 will be ran February, May, August and November with a low value coupon of
$0.50. Health After 50 will have a full page, 4 color. Health After 50 will have a circulation of 2,497,640. Better Nutrition will be ran March, June, September and December with a low value coupon of
$0.50. Better Nutrition will have a full page, 4 color. Better Nutrition will have a circulation of 350,000. Promoting through Lifetime 5 days a week, 4 times a day for February-December with a low
value coupon of $0.50. Lifetime will be a branding commercial for February, March, April, November, and December. Lifetime will be a new products commercial for May, June, and July. Lifetime will be a trade deal promotion for August, September, and October.
Promoting through CNN 3 days a week, 1 time a day for February-October. Then 2 days a week, 1 time a day for November and December.
CNN will be a branding commercial for February, March, April, November and December. CNN will be a new products commercial for May, June and July. CNN will be a trade deal promotion for August, September and October. Promoting through TBS 3 days a week, 1 time a day for February-July. Then 2 days a week, 1
time a day August-December. TBS will be a branding commercial for February, March, April, November and December. TBS will be a new products commercial for May, June, and July. TBS will be a trade deal promotion for August, September and October. Online broadcasting through Facebook expecting 40,000,000 ad views per month. Facebook will have banner ads which costs $0.01 per ad view. Continual updates to Facebook page (free). Online broadcasting through YouTube expecting 365,000 ad views each month. YouTube will have banner ads and before video short ads which averages $0.30 per ad viewed Promoting through newspaper, which will be a nationwide promotion with a low value coupon
of $1. Website updates every quarter that will cost about $5,000.
Silk MARKETING SPENDING BUDGET Date: 2017
Jan Feb Mar April May June July Aug Sept Oct Nov Dec Total
PULL STRATEGIES
Television Commercials
Television Comm. Production Costs 250,000 250,000 250,000 250,000 1,000,000
Lifetime 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 22,000,000
Cable News Network 1,200,000 1,200,000 1,200,000 1,200,000 1,200,000 1,200,000 1,200,000 1,200,000 1,200,000 800,000 800,000 12,400,000
Turner Broadcasting System 1,200,000 1,200,000 1,200,000 1,200,000 1,200,000 1,200,000 800,000 800,000 800,000 800,000 800,000 11,200,000
Creative 37,500 660,000 660,000 697,500 660,000 660,000 697,500 600,000 600,000 637,500 540,000 540,000 6,990,000
TTL Television Commercials 287,500 5,060,000 5,060,000 5,347,500 5,060,000 5,060,000 5,347,500 4,600,000 4,600,000 4,887,500 4,140,000 4,140,000 53,590,000
Magazine Advertising
Production 25,000 25,000 50,000
Parents Magazine 215,400 215,400 215,400 215,400 861,600
Health After 50 197,295 197,295 197,295 197,295 789,180
Better Nutrition 19,630 19,630 19,630 58,890
Creative 36,060 29,594 2,945 32,310 29,595 2,945 36,060 29,595 2,945 32,310 29,595 2,945 266,899
Coupon Cost (50₵) 11,085 12,490 1,750 11,085 12,490 1,750 11,085 12,490 1,750 11,085 12,490 1,750 101,300
TTL Magazine Advertising 0 239,379 24,325 258,795 239,380 24,325 24,325 287,545 239,380 4,695 258,795 24,325 1,625,269
Online Advertising
Website 5,000 5,000 50,000 5,000 65,000
Facebook 40,000 40,000 40,000 40,000 40,000 40,000 40,000 40,000 40,000 40,000 40,000 40,000 480,000
YouTube 109,500 109,500 109,500 109,500 109,500 109,500 109,500 109,500 109,500 109,500 109,500 109,500 1,314,000
Creative 18,000 17,250 17,250 18,000 17,250 17,250 18,000 17,250 17,250 18,000 17,250 17,250 210,000
TTL Online Advertising 172,500 166,750 166,750 172,500 166,750 166,750 217,500 166,750 166,750 172,500 166,750 166,750 2,069,000
Couponing
Production 25,000 25,000 25,000 25,000
Space/insertion 500,000 500,000 500,000 500,000
Coupon Cost 1,000,000 1,000,000 1,000,000 1,000,000
Creative 228,750 228,750 228,750 228,750
TTL Couponing 0 1,753,750 0 0 1,753,750 0 0 1,753,750 0 0 1,753,750 0 7,015,000
TOTAL PULL STRATEGIES 460,000 7,219,879 5,251,075 5,778,795 7,219,880 5,251,075 5,589,325 6,808,045 5,006,130 5,064,695 6,319,295 4,331,075 64,299,269
PUSH STRATEGIES
Trade Allowance
Grocery Stores 3,105,000 3,105,000 3,105,000 3,105,000 12,420,000
Drug Stores 240,000 240,000 240,000 240,000 960,000
TTL Trade Allowance 0 3,345,000 0 0 3,345,000 0 0 3,345,000 0 0 3,345,000 0 13,380,000
New Distribution
New Products Distribution 300,960 300,960 601,920
TTL Mktg Program #5 0 0 0 0 0 300,960 300,960 0 0 0 0 0 601,920
TOTAL PUSH STRATEGIES 0 3,345,000 0 0 3,345,000 300,960 300,960 3,345,000 0 0 3,345,000 0 13,981,920
TOTAL MKTG SPENDING 460,000 7,219,879 5,251,075 5,778,795 7,219,880 5,251,075 5,589,325 6,808,045 5,006,130 5,064,695 6,319,295 4,331,075 78,281,189
SILK ADVERTISING AND PROMOTION CALENDAR
JAN '17 FEB '17 MAR '17 APR '17 MAY '17 JUNE '17 JULY '17 AUG '17 SEPT '17 OCT '17 NOV '17 DEC '17PULL MARKETING 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4
Television Commercials
Lifetime
(Ad. #1) Run 5 days/week 4 times/day (Ad. #2) Run 5 days/week 4 times/day (Ad. #3) Run 5 days/week 4 times/day (Ad. #4) Run 5 days/week 4x day
Branding Commercial New Products Commercial Trade Deals Promotion Branding Commercial
Cable News Network
(Ad. #1) Run 3 days/week 1 time/day (Ad. #2) Run 3 days/week 1 time/day (Ad. #3) Run 3 days/week 1 time/day (Ad. #4) Run 2 days/week 1x day
Branding Commercial New Products Commercial Trade Deals Promotion Branding Commercial
Turner Broadcasting System
(Ad. #1) Run 3 days/week 1 times/day (Ad. #2) Run 3 days/week 1 times/day (Ad. #3) Run 2 days/week 1 times/day (Ad. #4) Run 2 days/week 1x day
Branding Commercial New Products Commercial Trade Deals Promotion Branding Commercial
Magazine Advertising
Parents Magazine
Full Pg 4C w/ 50₵ Coupon Full Pg 4C w/ 50₵ Coupon Full Pg 4C w/ 50₵ Coupon Full Pg 4C w/ 50₵ Coupon
2,217,318 Circ 2,217,318 Circ 2,217,318 Circ 2,217,318 Circ
Health after 50
Full Pg 4C w/ 50₵ Coupon Full Pg 4C w/ 50₵ Coupon Full Pg 4C w/ 50₵ Coupon Full Pg 4C w/ 50₵ Coupon
2,497,640 Circ 2,497,640 Circ 2,497,640 Circ 2,497,640 Circ
Better Nutrition
Full Pg 4C w/ 50₵ Coupon Full Pg 4C w/ 50₵ Coupon Full Pg 4C w/ 50₵ Coupon Full Pg 4C w/
350,000 Circ 350,000 Circ 350,000 Circ 50₵ Coupon
Online Advertisng 350,000 Circ
Website
Updates Updates Updates Updates
Expected 40,000,000 ad views per month
YouTube
Expected 365,000 ad views per month
Couponing
2 Full Page ads with $1.00 coupon 2 Full Page ads with $1.00 coupon 2 Full Page ads with $1.00 coupon 2 Full Page ads with $1 coupon
50 Million Circ 50 Million Circ 50 Million Circ 50 Million Circ
PUSH MARKETING Full Page Insertion ad. Full Page Insertion ad. Full Page Insertion ad. Full Page Insertion ad.
Trade Allowance
15% or 33₵ off for TPR 15% or 33₵ off for TPR 15% or 33₵ off for TPR 15% or 33₵ off for TPR
Feature ad & Secondary Display Feature ad & Secondary Display Feature ad & Secondary Display Feature ad & Secondary Display
New Distribution
30% or 67.5₵ off for New item dist. & TPR
Feature ad & Secondary Display