Cinnamon Toast CrunchAdvertising Plan

Ben Knoebl

Brit Vezina

Grace Chang

Jessie Li

Michelle Lawrence

Situation Analysis: the Category• The United States breakfast cereals category sales have remained relatively flat from 2008-13, due

in part to a lack of innovation and brands that have grown stale in a highly saturated market. From 2008-13, category sales at current prices increased just 1%. However, when accounting for inflation, sales dropped 7%, reaching $11.5 billion in 2013.1

• Ready-to-eat cereals is the largest segment of the breakfast cereals market in the United States, accounting for 88.6% of the market's total value.2

• Kellogg Company is the leading player in the United States breakfast cereals market, generating a 29.7% share of the market's value. General Mills accounts for 28%.3

• The US breakfast cereals market is concentrated with the top four players accounting for 80% of the total market value.4

• Supermarkets / hypermarkets form the leading distribution channel in the United States breakfast cereals market, accounting for a 84.8% share of the total market's value.5

• Potential for substitutes for breakfast cereal is moderate. Substitutes could include traditional breakfast foods (like pancakes, eggs), but breakfast cereals boast nutritional values with fiber and vitamins, and are usually eaten with milk, so that means calcium. They are quicker and easier to prepare.

• Consumers already are using cereals for meals beyond breakfast. One-third eat cereal as a snack, while 14% either enjoy cereal as part, or instead, of dinner. Additionally, 86% agree cereal can be eaten at any time of the day, all according to Mintel’s consumer research. Companies must acknowledge the changing consumption environment and tailor their offerings accordingly.6

• More than one third, 36%, of adults agree cereal is a good dessert item, according to Mintel’s research. Cereal innovations that feature dessert flavors will be well-received by adults and children alike, and will appeal to diverse eating occasions.

• “Manufacturers should continue to develop products that meet consumer demand for wholesome and portable offerings in an effort to revitalize stagnant cereal sales. A new focus on adults, following decades of appealing to younger consumers, is now needed to revitalize the category.” – Amanda Topper, Food Analyst

Here’s what people said most when asked how they feel about cereal:

Situation Analysis: the Category

• The cereal aisle is commonly geared toward children, with bright colors and characters on the boxes, and rows of merchandise down to the floor.

• Children generally become more excited and involved in the grocery shopping process when in the cereal aisle than they are in other aisles.

• Adults, of course have the final say concerning what gets purchased. When asked what factors they consider most when purchasing cereal, most cited taste, value, and nutrition.

• This graphic (right) illustrates what people said most when asked what factors influence their cereal purchasing decisions:7

Situation Analysis: the Competition

• Based on the percentage of the share and the amount (in millions) that the cereal brand contributes to the overarching market share, these cereals have generated more revenue than Cinnamon Toast Crunch8

o Kellogg Co.: Frosted Flakes

o General Mills: Honey Nut Cheerios and Cheerios

o Post Holding Inc.: Honey Bunches of Oats

• These four cereals have a strong brand image that target a wide range of consumers9

o Frosted Flakes: Tony the Tiger

▪ Advertisements that target both young children and families

o Honey Nut Cheerios and Cheerios: Buzz Bee

▪ Infants to adults who have cholesterol issues

o Honey Bunches of Oats: The Smile Squad

▪ Diverse range of consumers

• Based on the cereals that households with one or more children consume, Cinnamon Toast Crunch came in at 7th place10

o Cereals like Cheerios, Honey Nut Cheerios, Kellogg’s Frosted Flakes, and Kellogg’s Fruit Loops were consumed more than Cinnamon Toast Crunch

• While Fruit Loops and Honey Bunches of Oats outperform Cinnamon Toast Crunch based on different criteria, Cheerios, Honey Nut Cheerios, and Frosted Flakes consistently outperform and generate more revenue than Cinnamon Toast Crunch.

Situation Analysis: the Competition

Situation Analysis: Consumer / Culture• About 91% of US households consume cold breakfast cereals. Even though this number is very high, the breakfast cereal industry saw sales decline by 1% each year

during the past decade.11

• There are three main reasons for this decline:12

o Change in breakfast habit - Fewer and fewer people sit down for their breakfast. Especially Millennials rather grab a nutritious yogurt or buy sandwiches for their first meal of the day. There is a general trend departing from the traditional 3-meals-a-day pattern towards various small snacks distributed over the entire day. People don’t want to spend time for long sumptuous meals anymore. Faster is better.

o Health issues - A traditional American breakfast was set to give you enough power so you can sustain through the day. For this reason it contained heavy foods such as pancakes or sausages. Since breakfast habits changed and people became more health conscious they started to eat less cold breakfast cereals and turned more towards healthy alternatives such as yogurt or fruits, or hot cereal. Find out more about this trend on the next page.

o Birth-rate decline - In 2012 about 28,9% of all US households included children. In 2002 this number was still up to 32,7%. While 49% of adults eat breakfast cereals on a regular basis, breakfast cereals are still considered a meal for families with children. Just now the industry starts to better target adults in order to fight the decline.

• These reasons have affected the industry in various ways:13

o Introduction of breakfast shakes - Following the trend that people want to spend less time for their breakfast, so called “breakfast shakes” have evolved. They are a mixture of cereals and dairy and can be consumed on the go.

o Adjustment of nutritional values - During the past decade sugar and sodium levels have been decreased while fiber levels have been increased in various breakfast cereals. See more on the next page.

o New cereals for adults - In order to better reach adults, many cereal manufacturers have started to introduce new breakfast cereals targeted towards adults only. Example: Kellogg’s Raisin Bran Omega 3

The consumers favorite cereal is not always the one they buy most. The consumers tend to make purchase decisions with more emphasis on price and nutrition, even though they do not pick their favorites that way.

Situation Analysis: Consumer / Culture• Health Trends

o During the past decade cereal manufacturers have responded to the trend of a healthier lifestyle. They have adjusted the amount of various ingredients. The USDA National Nutrient Database for Standard Reference conducted a research on the nation’s largest cereal manufacturers: Kellogg and General Mills.14

o The research yielded the following outcomes:▪ Sugar: Decline from 27,5 g (per 100g) to 24,8 g (change from 2005 to 2011)▪ Sodium: Decline from 0,51 g (per 100g) to 0,43 g (change from 2005 to 2011)▪ Fiber: Increase from 7,1 g (per 100g) to 9,4g (change from 2005 to 2011)

o Sugar has been the villain for a long time, sodium is of concern because it raises the chance of heart diseases and fiber is embraced for its “filling” features.

o Besides this change in the actual products, cereal manufacturers have also adjusted their advertising, especially when it comes to children. The general trend is to send out messages that say “good for you” rather than the traditional “fun for you”.

• Eating Trends15

o While cereals are still mostly eaten during breakfast (89%) more and more people consume them as a snack (33%). Some consumers eat cereals as a substitute for their lunch. This makes the increased amount of fiber especially important since consumers have claimed they would eat more cereal if they felt satied for a longer time.

o A very new trend is eating cereals as a dessert, which could be very interesting for sweeter cereals such as Cinnamon Toast Crunch. Currently only 7% consume cereals as a dessert but the trend is growing. The newly emerged baking-trend aids this section. More and more people create cakes and muffins with their favorite candy in it. Just now even famous baking platforms such as “No Bake Makery” have started to use cereals in their recipes.

• Recent issue that may influent Cinnamon Toast Cruncho In July 2013, first lady Michelle Obama denounced ads that use cartoon characters to push junk food, including snacks, soft drinks, sugary

cereals and fast. She also appealed to limit ads targeting children.21

Situation Analysis: the Company • Cinnamon Toast Crunch is a cereal brand belongs to General Mills, one of the world’s largest

food companies. General Mills is the second largest company in terms of the market share of breakfast cereals.16

• The brand was first produced in 1984. The cereal consists of small squares or rectangles of wheat and rice covered with cinnamon and sugar.17

• The Market Share of Cinnamon Toast Crunch ranked the 3rd among General Mills cereals brands, and Cinnamon Toast Crunch is among the leading cold cereals companies in US.18

• The brand targets on both kids and young adults now. It’s for everyone who is a kid at heart.

o For kids: It’s a sweet-taste breakfast cereals that helps them grow up strong.

o For young adults: It’s a mid-night snack, and an ingredient for dessert bake. It matches their love on sweet food.

• The image of Cinnamon Toast Crunch in consumers’ minds can be:

o Nutritional: It’s whole-grain, fortified with vitamins and minerals, and is considered to be a good source of calcium.

o Snacks: It’s claimed as the “official midnight cereal” on social media, young adults stay up late at night, eat them in bed and share the photos to Facebook.

o Dessert: Cinnamon Toast Crunch provides and shares dessert or bake recipes that contain the cereal as an ingredient. The General Mills also using the Hello, Cereal Lovers Website and social network accounts to encourage cereal consumption on multiple fronts.

o Unhealthy: Cinnamon Toast Crunch is known as whole-grain, but still unhealthy product. It ranked at the 4th place among Cereals with the poorest nutrition ratings that are advertised to kids in a report published in 2009.

According to MRI+, women like CTC, while men don’t. Adults from 18-54 consume CTC. People with higher HHI, consume CTC more. What the consumer thinks first when Cinnamon Toast Crunch is mentioned:

Situation Analysis: the Company

• According to our questionnaire research, the words that considered most by respondents when Cinnamon Toast Crunch is mentioned are cinnamon, taste, sugar, etc. It indicates that Cinnamon Toast Crunch has impressed consumers with good sweet taste.

• On the other hand, according to our survey, for people who don’t buy Cinnamon Toast Crunch, they feel it’s unhealthy, which may be caused by the sweet taste.

How often do you eat Cinnamon Toast Crunch? If you don’t buy Cinnamon Toast Crunch, what’s the reason?

Situation Analysis: Communication Current ad agency: McCann Erickson New York22

-ME NYC is putting more “efforts in social media to reflect the rapidly growing interest among marketers in reaching consumers through platforms like Facebook, Pinterest, Tumblr, Twitter and blogs”

•CTC communication targets 18-24 year olds23 •[After comments were found in social media about the brand from “millennial males” who ate it at night — rather than from the target audience of mothers buying it as breakfast for their children — “we created some posts for Facebook and Twitter that got a lot of engagement,” she said, featuring cheeky comments like “Good in bed” and “Spoon with me.”]

•Mascots are animated cereal pieces (Cinnamon Toast Crunch Crazy Squares) •Starting from 1987 Cinnamon Toast Crunch was using three animated bakers as the mascots. •current tagline: “Crave Those Crazy Squares”•Crazy Square characters are now used across all advertising platforms•older adults have a negative perception of the Crazy Squares, considering them to be cannibalistic; the younger target market reacts favorably to the Crazy Squares. •on social media, CTC has embraced the cannibalistic inquiries “It also makes you a lot like our crazy little cannibalistic squares who love the taste so much they can't help but eat each other. So seriously irresistible they crave that amazing taste of Cinnamon Toast Crunch. Do you crave them, too?” 24

•Television Commercials•currently only using Crazy Square characters in all commercials •targeting teens to early 20s •link to all commercials

•Packaging26

•the only medium that does not use the Crazy Squares; traditional baker icon used instead•marketing to moms instead of 18-24 year olds?•front of box mentions “whole wheat” and only “130 calories”; but these attributes aren’t played up as much as they should be •packaging disrupts consistency of Crazy Square ad campaign

Situation analysis: Communication • Relies heavily on images for its social media content.

• Holds a lower online SOV, generating 15% of cereal discussion among the analyzed brands.25

• Facebook: involves fans in content creation, using fan-submitted content for its pictures - marketed to 20’s to early 30’s; primarily recipe suggestions, fan recipe creations

• Twitter: does not have a high number of followers, ranking last on the microblogging platform in a Mintel analysis of cereal brands - marketed to teenage males - tweets from point of view of a Crazy Square

• Instagram: only averages 40 to 50 ‘likes’ per post - has only obtained 700+ followers since its Instagram launch in August 2012

SWOT Analysis

Strengths Weaknesses

Nutrition: whole grain first ingredient, only 130 calories per serving and 7 grams of sugar

Popular tasteUnder a strong parent company that manages

a variety of brandsStrong brand awareness (almost 30 years)

Appropriate as breakfast, snack, baking ingredient or dessert

No artificial colors or candy inside as opposed to other cereals

Largely thought of as a children’s cerealWebsite even states “hey kids, this is

advertising”Games

High in sugarConsidered to be unhealthy despite being a

good source of calciumCompeting against a strong brand in the same

companyThe “cereal eats cereal” campaign is confusing

Low SOV on social media

Opportunities Threats

Market to an older demographicEmphasize the nutritional value

Redo the website to a more neutral toneWork with the other brands under General

Mills to incorporate Cinnamon Toast Crunch into something other than breakfast (snack,

dessert)Play on the “for everyone who is a kid at heart”

2014 will be the 30th anniversaryNew eating pattern, away from 3 meals a day

Misguided impressions of nutritionKellogg’s and Post Co.Other breakfast foods

Focus on hunger and fighting childhood obesity

Social denounces on advertisements target on children

Trend towards more nutritious breakfastNew eating pattern, away from 3 meals a day

Target Audienceo Women, 25-34 27, 28

o Young professionals and young professional mothers

o Urban, fast-paced environment

o Concerned with nutrition and fitness

o Likes to treat herself occasionally

o Fun-loving, family oriented

o Middle class

o Busy

Target Audience--Primary ResearchQualitative Research

• Research Universe: Within target audience: Professional women ages 25-34

• Research Objective: Deeply understand lifestyle and consuming habit of target audience; understand target audience opinion and consuming motivation on CTC.

• Research Method: Face-to-face in-depth interview

• Sample: 5 available samples within target audience

Qualitative Research Findings29, 30

Lifestyle

• How busy are you in the morning?

o Most of the respondents we interviewed are busy or very busy in the morning. Using the business scale: 1-lazy to 10-crazy busy, most of them feel they are busy, while 1 respondent feel she’s very busy.

• How often do you eat breakfast? Fast breakfast, or sit-down breakfast? Why?

o Most of our respondents eat breakfast everyday, they usually eat a fast, on-the-go breakfast due to the limited time.

o There is also a respondent sit down to eat breakfast everyday, which is because she enjoys breakfast and needs time to fully wake up.

o The food they eat includes, cooked or boiled eggs, bread,cereal, etc.

• Where do your kids eat breakfast, at home or school? What do they eat. (If they have kids)

o Only one of our respondents has kid. Her kid usually eats the same as adults, and eats in car.

• How do you maintain a healthy lifestyle?

o All of our respondents mentioned they do regular exercise to keep a healthy lifestyle.

o However, when they cannot make doing it, they pay more attention to the food they eat: they avoid sugar, soda and alcohol. They try to eat more vegetables and less meat. Some of them cook for themselves and pay attention to nutrition forms of the food they buy.

o Some of them also make sure to get enough sleep and avoid smoking.

Qualitative Research Findings31

Consuming Habit

• What type of breakfast do you eat?

o Our interviewees’ type of breakfast very much reflects their lifestyle. They usually don’t have much time to prepare a big breakfast in the morning so essentially all of them include cereal at least a couple of times a week. They think it’s quick, healthy and filling. Some also go for fruits, toasts or eggs. Health plays an important role and no one of our respondents has a traditional American breakfast that would involve bacon, pancakes or similar. Some responded that they would occasionally buy a quick breakfast on the go but even then it’s usually a healthy sandwich or salad.

• What is your go-to snack?

o The responses for the go-to snack were similar to the previous question. Again the respondents are often concerned about the health value of what they eat. Almost everyone mentioned to eat fruits as their go-to snack, cereal or cereal bars. Some like to treat themselves with cookies or crackers but they try to keep the consumption to a minimum. The main reason for a snack is to get a quick energy boost. It shouldn’t count as a full meal.

o The following is a collection of the provided answers: Fruit, Cereal, Cereal Bars, Bread, Yogurt, Cookies, Crackers

Opinion of CTC

• Key words that come to mind about CTC?

o Most commonly, the target thinks of sugar, sweetness, and childhood. They remember CTC as a cereal coated in sugar. Some also mentioned happiness, comfort, satisfaction. They cited the crispiness and pleasantly recall the taste.

• Who do you think CTC is for?

o All of the women interviewed think that CTC is for children, They conclude that children like sweets. Some women don’t feel that anyone should eat it because they don’t think it has nutritional value. Also, the packaging seems childlike to them. The swirls of sugar on the cereal and the box make them think it is appealing to kids’ sweetooths. The women mentioned that the box is colorful and cartoon like (compared to Special K or Kashi), and the commercials with the squares that eat themselves are funny to children.

• What convince you to eat CTC?

o In general, the target would consider eating CTC if it was healthy and nutritious. Other factors included snacking with friends, or being inebriated. Some said they would eat CTC if it did not contain artificial flavors, and had whole grain, and if the commercials appealed to them.

• What do you think of “crazy squares” and “baker” of CTC?

o Some women in the target group remember the baker fondly, but the majority of them do not remeber him, or have any opinion about him. They are generally amused by the crazy squares, but some feel that it is a ploy to target children with advertising.

Qualitative Research Findings32

Key Insight• The problem to be solved is that consumers think Cinnamon

Toast Crunch is:

o Unhealthy

o Too sugary and artificial

o Aimed at children because nutrition is not a factor to them

• The key consumer insight we uncovered is that consumers want a quick and healthy breakfast.

o Often eat on the go or spend a small amount of time at home

o Concerned with healthy eating/lifestyle

Brand Vision Statement

Core Identity

• Brand Soul:

o A great-tasting sweet cereal you look forward to enjoying.

• Brand Values

o The kid at heart: childhoodo Funo Tasteo Qualityo Nutrition

• Point of Difference

o CTC is a mixture of cereal and sweet treat. It can be enjoyed as a nutritious breakfast or as a healthy sweet treat during the day. CTC is versatile, tasty and healthier than most other sweet cereals.

Extended Identity

• Personality

o CTC is a fun, energetic young man who cheers for you and likes to celebrate. CTC rides a scooter and will get to his friends any time. He has a wild and zany side but also a wholesome jolly side. He is so good to you that you sometimes fear he’s bad for you, and he hasn’t yet told you otherwise.

• Brand Positioning

o The nutritious, tasty treat

Consumer Relationship

• Functional Benefits

o Whole grainso Only 130 calories and 7 grams of sugar per serving

• Emotional Benefits

o Indulgenceo Treato Nostalgia

• Consumer/Brand Relationship

o Quirky friend that will always be with you.

ObjectiveAdvertising will convince

professional women ages 25-34 that Cinnamon Toast Crunch provides a quick and nutritious breakfast. Support will be CTC is whole grain, increased fiber, and reduced sugar and sodium content.

Tone will be mature, casual, and fast-paced.

Creative BriefClient: Cinnamon Toast Crunch

Project: CTC Ad Plan

Job #: 116114128330B

Date: December 10, 2013

Business Challenge: Consumers currently think that Cinnamon Toast Crunch is an unhealthy cereal.

Communication Objectives: To convince the target consumer that Cinnamon Toast Crunch makes a fast and healthy breakfast.

Brand Essence:

Rational- high in fiber, whole grain, 130 calories, 7 grams of sugar, doesn’t need to be cooked, tastes good dry

Emotional- indulgence, treat, nostalgia

Target Audience: Professional women ages 25-34

Key Insight: Target wants breakfast that can be consumed quickly with little preparation. They care about nutrition, but don’t have time to cook in the mornings.

Creative BriefThe Big Idea: Convince young professional women that Cinnamon Toast Crunch is the right breakfast

for them because it’s quick and nutritious.

Motivating Support Point: CTC is whole grain, increased fiber, and reduced sugar and sodium content

Current Response: People often don’t buy Cinnamon Toast Crunch because they think of it as a sugary and unhealthy cereal.

Desired Response: Cinnamon Toast Crunch is a quick and nutritious cereal, suitable for our target audience.

Executional Considerations: The tone of the ads will be mature, casual and fast-paced.

Input: AS CIG Creative Media Client Approval__________ Briefing Date December 10, 2013

Media PlanMedium Optimal Time Vehicles

Internet Weekdays: 2pm-6pm Pandora, Gmail, Hotmail, Disney.com

Radio Weekdays: 6am - 10am, 3pm - 7pm

Weekends: 3pm - 7pm

Soft rock stations, Radio Disney, Top 40s stations, Contemporary Hit Radio

Magazines September-May(Academic year)

Fit Pregnancy, Allure, American Baby, Women’s Health

Rationale: Our target consumers are heavy users of internet, radio, and magazines, therefore we will concentrate our campaign in those media. The above are the most popular vehicles for our target, according to MRI. Primary and secondary research indicated that our consumers use the internet most often during the workday, and the radio during their commute. During the school year, women are more likely to need a fast breakfast for children in the household, so we will reserve the print budget for those times. 34

Media Rationale - High Index NumbersFemales, 25-34:

o Internet▪ Hotmail/Windows Live, Gmail▪ Pandora.com▪ Disney.com▪ IMDB▪ Univision.com (Espanol)▪ Amazon/Ebay

o Radio▪ Weekdays: 6:00 am - 10:00 am + 3:00 pm - 7:00 pm▪ Weekends: 3:00 pm - 7:00 pm

o Magazines▪ American Baby, Baby Talk, Fit Pregnancy, Family Fun▪ Allure, Cosmopolitan, OK!▪ Bridal Guide

o TV▪ mostly light tv watchers, but when they do watch, these are the

channels:▪ adult swim▪ bravo▪ comedy central▪ centric▪ E! 35

Females 25-34, with children two in household:

o Internet

▪ Disney.com

▪ pbs.org

▪ Yahoo! Answers

▪ Univision.com (Espanol)

o Radio

▪ Weekday 6:00am-10:00am

▪ Weekday 3:00pm-7:00pm

o Magazines

▪ American Baby, Baby Talk, Fit Pregnancy

▪ Parenting, Parents, Scholastic Parent & Child, Bonnier Parenting Group

▪ National Geographic Kids

o Television

▪ Very light watchers

▪ Nick Jr., Galavision, Nickelodeon, Disney XD, Cartoon Network, PBS Kids, Nick at Nite, Disney Channel, Teen Nick36

Media Rationale - High Index Numbers

Advertising Execution● Tagline: Lighten Your Day the Cinnamon Way

○ Social Media: Application■ Partnership with Foursquare for a GEO-fenced feature

that recognizes when the consumer is inside the grocery store or other relevant places. Services include in-store navigation, nutrition information for cereals, grocery list tools, and healthy choice incentives.

○ Radio: Dialogue○ Magazine: Print Advertisement

■ In a women’s magazines○ Internet: Google Calendar Add-on

■ This add-on can calculate and record users’ daily calorie intake. By simply entering the name of the food, users can get an automatic calorie calculation and a chart of their calorie records.

Endnotes [1] Mintel. “Breakfast Cereals-US-August 2013”

[2] Ibid.

[3] Ibid.

[4] Ibid.

[5] Ibid.

[6] Ibid.

[7] Survey conducted by group.

[8] “Breakfast Cereals-US-August 2013”

[9] Cheerios. Frosted Flakes. Honey Bunches of Oats

[10] “Breakfast Cereals-US-August 2013”

[11] Ibid.

[12] Robin G. Thomas et al.

[13] Elaine Watson

[14] Thomas et al.

[15] Watson

[16] General Mills

[17] Ibid.

[18] “Breakfast Cereals-US-August 2013”

[19] Cinnamon Toast Crunch

[20] “Breakfast Cereals-US-August 2013”

[21] Matea Gold

[22] Stuart Elliott

[23] Ibid.

[24] Cinnamon Toast Crunch Facebook

[25] Andrew Newman

[26] Cinnamon Toast Crunch

[27] MRI+ Media “Demographics”

[28] MRI+ Product “Household Products”

[29] Lawrence, et al.

[30] Ibid.

[31] Ibid.

[32] Ibid.

[33] Survey interviews conducted by group.

[34] “Demographics”

[35] Ibid.

[36] Ibid.

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