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Table of Contents: Executive Summary....................................Page 4 Situation Analysis......................................Page 5 Challenges and Opprotunities...............Page 34 The Recommended Test Market City....Page 36 Campaign Objectives...............................Page 38 Trade Distribution Plan...........................Page 41 Test Market Recommendation................Page 43 Media...........................................................Page 45 Cost Efficiency Analysis................Page 52 Media Flow Chart...........................Page 54 Creative.......................................................Page 62 Promotions.................................................Page 72 Budget Breakdown...................................Page 76 Citations......................................................Page 80 Appendix....................................................Page 82

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Executive Summary: Kellogg’s is excited to announce the launch of Special K Snack Crackers. The brand has been an extremely successful tool for weight loss management and helped create a positive image for women. The product is a wheat cracker designed to make snacking a healthy option. Special K Snack Crackers will be available in three exciting flavors: Multi-Grain, Savory Herb, and Italian Tomato & Herb.

Information was collected based on extensive primary and secondary research. Interviews with multiple store managers from a handful of test market supermarkets within the designated market area (DMA) helped us to conclude the trends of snack crackers and the direction they may be heading for the future. This valuable insight was critical to the understanding of the product. Sales promotions were monitored and inspired us when it came time to create promotions of our own. Secondary research consisted of Simmons Choices 3, Mintel, Spokane Chamber of Commerce, U.S. Industry Reports, and United States Department of Labor.

Spokane, Washington will be the test market city based on the population size of just over one million. This city represents roughly 0.36% of the entire United States population. Special K Snack Crackers will be sold 72 stores in the area, in hopes to gain ofgaining a higher frequency.

The target audience was based on researching the trends and activities of individuals who are more likely to eat snack crackers. After a closer look at different demographics, the chosen audience is women ages 45-64 that are married with a household income of $50,000-59,999. These women strive to eat healthier, but may need motivation in order to accomplish their goals.

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Situation Analysis: The Market: Definition of the Market: Snack foods are a part of our daily lives whether they are fruits and vegetables, or chips and dip. Snack crackers rated among the top snack foods according to a survey done in Mintel. Though 70% of the population eats snack crackers, only 28% report crackers as a healthy snack.1 The reflecting low number can be explained by the growing popularity of low-carb diets, but the percentage is expected to increase due to “better for you” brands such as Kashi TLC. Kellogg’s Special K Snack Crackers would be recognized within this healthy category because they have multi-grain ingredients while being a low-calorie option. In the current market, snack crackers are available in many flavors and are often seen in reduced fat versions for those watching their weight. 1

Mintel: Healthy Snacking, 2009

Market Forecast: Crackers are projected to continue to grow in sales forecasted up until 2013. With a projected 11% rise between 2009 and 2013, Kellogg’s can be confident they are entering the snack cracker market at an opportune time.1Having a steady increase between these years, the future beyond today can only be expected to grow. 1

Mintel: Crackers, 2009

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8oz

Market Composition: Coming in a variety of flavors, crackers are

16oz

10oz

easily one of the most versatile of snacks. Sweet and savory, reduced fat and flavor blasted, there is a cracker for every type of person. Sizes range from single serving 20g packs, all the way up to a 16oz family size

Significant Trends:

box. The majority of snack crackers range within 8-10oz-size boxs. Major competitors

With the economy in recession, saving money

include Nabisco, Campbell Soup Co., Keebler,

is on the minds of our consumers. Generic

and our own brand Kellogg’s.

store brand options are a viable opportunity for individuals who may be experiencing this economic downfall. Another trend is the targeting towards children where apperance and flavor are generally more important. Organic and all natural can also be seen as a new trend that has influenced the cracker industry. Overall, healthy eating habits are on the minds of many Americans, especially our targeted demographic of women ages 45-64. Nearly all brands come in a low-fat or reduced-fat option, as well as snack packs that only contain 100 calories making it easier for consumers to balance their diet and control how much they are eating.

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Competitive Position: Parity and Non-Parity Products: Special K Snack Crackers are a healthy, baked, whole grain snack cracker with only 90 calories for 17 crackers and it is in its own category with no direct parity products. Many non-parity products are sold that are of competitive value.

There are several brands of crackers that have healthy options, like reduced fat and whole wheat. Kraft foods has the highest cracker market share, therefore they are our greatest competitors. Kraft offers Nabisco’s Wheat Thins Whole Grain as a healthy cracker alternative. Kashi TLC is another central competitor, with a variety of whole grain and baked cracker variations1. Campbell Soup Company offers various healthy cracker options including Goldfish Crackers with whole grains and Pepperidge Farm Baked Naturals. 1

Mintel, Crackers

There are many other snack products that are leading competitors to not only Special K Snack Crackers, but the healthy cracker industry as well. Salty snacks are a large competitor of crackers, with potato chips holding an approximate 89% market share among popular snack foods.1 PepsiCo Incorporated possesses the highest sales with Frito-Lay, followed by Kraft Foods Inc. and ConAgra Foods Inc. Tortilla chips are the second highest rated salty food. Nuts are also among our competing snack foods with Kraft Planters being the most purchased. 1

Mintel: Crackers, 2009

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The sale of natural cheese as a healthy snack has steadily increased with sales of cheese blocks growing by 24%, slices by 104% and string cheese by 87% from 2003-08. Kraft’s Natural 2% Singles have boosted sales of cheese as a healthy alternative. Cereal is another competitive market as approximately $2.4 billion in total cereal sales for snackingpurposes. While Kellogg’s Special K Cereal attracts dieters and those looking to lose weight, more natural and organic cereals are purchased for snacking. Nutritious Living Antioxidant Indulgence Breakfast Cereal is low fat, provides whole grain, and defends the body against free radicals1. GranBiotics’ provides the probiotics culture found in yogurt which aids the digestive system. 1

Mintel: Healthy Snacking, 2009

Although cheese and cereal both provide individual benefits and healthy alternatives, it can be difficult for the consumer to gauge serving sizes and how many calories are consumed. Special K Snack Crackers provide low calories matched to a specific number of crackers to aid in healthy eating. Potato chips are the market segment’s leading competitor in sales but 71% of females said they would be interested in healthier versions of salty snacks, opening a window of opportunity for our line.

Product Line:

Special K Snack Crackers come in 8oz packages. 17 crackers in each box is the equivalent of 90 calories. The product comes in three flavors: Multi-Grain, Savory Herb, and Italian Tomato & Herb. They sell at a retail price of $3.79 for a box. These crackers contain a source of fiber and can help curve unhealthy cravings.

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Product Quality: Special K Snack Crackers are a premium product with great value. It is a good quality product because of its low calorie health benefits. It also comes in multiple flavors which gives it a competitive edge. Special K products offer a variety of special weight management options to help the user stay on track with their diet. Special K Snack Crackers are also suggested in the “Special K Challenge”. This weight loss program allows consumers to design a diet plan that fits best for their lifestyle. This further proves Special K’s quality and dedication to a healthy lifestyle. Special K Snack Crackers can be enjoyed in combination with other non-parity products such as cheese or fruit.

Distribution of Product: Special K products are distributed to consumers through multiple retail channels including supermarkets, mass merchandisers, drug stores, and warehouses. The product is sent to stores by brokers who then sell the products to the supplying retailers nationwide. The central channel Special K crackers uses to market its products are in supermarkets, as these are where the majority of healthy products are sold. Special K Crackers can be found with other leading competitive snack food crackers on the cracker and soup aisle. Cracker companies move their product into stores by shipping the product from warehouses to the suppliers.

Brand Shares or Per Capita Consumption: Kraft owns the majority of the cracker market share in the United States with 41.1%. Kellogg’s has the second highest market share with 25.4% of people. Campbell Soup’s company Pepperidge Farm has the third highest with 10.2%. 1 1

Mintel, Crackers, November 2009

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Dealers, Distributors and Brokers: Crackers are sold through a large number of retail channels such as supermarkets, convenience stores, drug stores, and gas stations. With a large variety of store availability, crackers are a popular food item for snacking, road trips, and parties, hence the availability of crackers often goes beyond the traditional grocery store.

Slotting Fees: To distribute products in stores, a slotting allowance is required. This allows distributors to secure shelf space for new products. The slotting allowance is based on the number of items, stores and placements in a store. The current average of slotting allowance in the Northwest is $170 per item per store. 1 1

AIMS Sales and Marketing Services, Chicago’s Report

For distributing crackers in a store, Kellogg’s has their own vendor and driver who comes in and does the ordering and restocking for supermarkets. Companies commonly slot at the end of store aisles to help differentiate themselves from other cracker brands. Crackers are also often displayed near other snack foods and beverages in their respective aisles or at snack food displays at the front of the store.

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Kelly Allen, the Pullman store manager of Walmart, explained that crackers are a high volume product especially during popular holidays and events during the year. These include any time before or around large sporting events like the Superbowl or major holidays like the 4th of July, Thanksgiving, and Christmas. The last projected price of cracker sales in supermarkets was just over 3.5 million in 2007.1 1

Mintel: Crackers 2009

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Shelf Schematics: Safeway, East Mission Avenue Spokane, Washington The following information was taken from a Safeway store on East Mission Avenue in Spokane, Washington. This is a great sample of the average cracker section from our DMA. Each shelf was just over one foot with a total of six rows, making the total height of the shelf just over seven feet. The total length of the cracker section was approximately 20 feet long. The following chart includes the layout of this section including brand, flavors, and prices.

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The Consumer: Size of the Consumer Market:

The Consumer market for crackers is ranked second in snack foodconsumption. Of all adults 18 and older, 84 % consume crackers compared to other snack food options. Women ages 45-64 are the key consumers of crackers and the primary target market reporting that healthy eating is very important. Cracker consumption varies between men and women. According to Mintel, 70% of females choose crackers for a snack food compared to only 66% of males.1 1

Mintel: Crackers 2009

Purchasing Habits and Usage:

The most important characteristic consumers are looking for in crackers is taste. 92% of all consumers agree that the flavor of the cracker itself is most important, regardless of the nutrition facts. The second deciding factor for choosing crackers is a flavor that goes with other food or toppings, with 79 % of consumers deciding on which crackers to purchase based off this characteristic. Although flavor comes in as a strong characteristic for people choosing crackers, 85% of both males and females agree that crackers are a healthy snack compared to other snack foods.1 1

Mintel: Crackers 2009

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Definition of the Test Market: While the highest income level is $75,000, the smartest income demographic to target is $50,00059,999 because it has a high correlation with people who eat crackers. The market is health cautious and aware of what they eat and the snack choices they choose.1 1

Mintel: Crackers 2009

Attitudes and Knowledge: While new products have to gain familiarity, having a popular brand name helps give new products a leg up on new product entries and provides assurance of quality to consumers. The attitudes of females towards health and diet are women being highly concerned. The top three responses towards health and diet were that they consider their diet to be very healthy, they think and take into consideration the calories in what they eat, and they like to know the ingredients before they buy a product.1 1

Mintel: Crackers 2009

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Attitudes of Consumer:

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Advertising History:

Market Share: Cracker category sales for all snack cracker brand competitors reached $3.9 billion in the year 2009. Of those sales, Nabisco dominated 41.1% of all sales, Keebler controlled 25.4% of all sales, and Pepperidge Farm held 10.2% of all sales; together the three brands shared 76.7% of the total snack cracker market share in 2009. National advertising for snack cracker products by leading brands was distributed almost excusilvely through magazine and television advertising campaigns in the year 2009. The leading national brands of snack cracker products spent $110,444,200 on their campaigns during the year 2009.

Comparable Advertising Dollars: The industry is dominated by five main competitors; Keebler’s Cheez-It, Nabisco’s Wheat Thins, Ritz, Triscuit, and Pepperidge Farm’s Goldfish. The information gathered through Ad $ Summary 2009 data provides Special K Snack crackers with a guideline of what the Special K brand can expect to spend on advertisng in the near future. In 2009, Cheez-It spent the most out of all brands at $36,547,800 on advertising. Ritz spent the second highest at $34,282,600. Wheat Thins spent a total of $17,039,900 while Triscuit spent slightly less at $12,291,600. Goldfish spent the least advertising dollars at $10,282,300.

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Snack Cracker Competitors:

Outside of the cracker aisle, snack crackers compete most directly with salty snacks, specifically potato chips, tortilla chips, and peanuts. To gain a better understanding of what Special K Snack crackers’ alloted advertising budget should be, data from the leading national brands of potato chips, tortilla chips and peanuts was collected. The top three competing brands of snack cracker competitors are Lays Potato Chips, Tostitos Tortilla Chips, and Planters Peanuts. All three of these brands generate higher sales than Special K Snack Cracker comparable products like Nabisco’s Wheat Thins. Special K’s category of comparable snack foods comes in fifth in the overall “snack foods” market share, right behind popcorn in fourth. Potato chips and tortilla chips alone account for for ’$2.8 billion and $2.1 billion in sales of the overall cracker category. In 2009, Lays Potato Chips spent a total of $23,658,900 on advertising for the year. Tostitos brand spent an even higher $26,958,000 on advertising, and Planters peanuts spent a much smaller $8,248,000 on advertising.

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Brand Sales:

The following graph corresponds to the information found in the table, showing the percent market share of competing snack food brands. The graph displays the five leading national snack food manufacturers that make up 84.3% of snack food industry sales.1 1

Ad $ Summary, 2009

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Advertising Budgets:

Cheez-It:

The Cheez-It brand spent an overwhelming 94% of their advertising budget on classic Cheez-Its. Of the $34,500,300 that was spent on the classic crackers, 50% of the budget was spent specifically on Network TV commercials. Just like other competing brands, almost all advertising dollars were spent on TV commercials, however, Cheez-It also spent 17% of their budget on magazine advertisments. This is similar to Goldfish and Ritz. It should also be noted that the Cheez-It brand had the highest overall advertising budget at $36,547,800.00, out of all major “cracker� competitors in the segment.1 1 Ad $ Summary, 2009

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Goldfish:

As indicated by the table, Goldfish spent over half of their advertising budget on the classic Goldfish crackers. Unlike other competitors such as Ritz, Wheat Thins, and Triscuits, Goldfish spent a substantial 44% of their advertising dollars for the classic crackers on magazine advertisments. However, just like the other brands their highest advertising dollars were spent for television, specifically 54%.1 1

Ad $ Summary, 2009

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Wheat Thins:

Just like Triscuits and Ritz, the majority of Wheat Thins advertising budget in 2009 was dedicated to specifically just the Wheat Thins Plain Crackers. Wheat Thins only spent money on television advertisments, using Network TV, Spot TV, Syndication, and Cable TV. Over half of the overall budget was spent on Network TV, while Cable TV came in at a close second with 38% of the total budget.1 1

Ad $ Summary, 2009

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Ritz:

Ritz brand spends most of their advertising dollars on crackers, and only a fraction on “Crackfuls” and “Ritz Bits”. Of the $26,582,200.00 spent on advertising for Ritz Crackers in 2009, about 44% was dedicated to Network TV commercials. This is similar to Triscuit’s budget breakdown. The second highest advertising dollars were spent on Cable TV at 26%, and a notable 20% of the budget was spent on magazine advertising in 2009. Ritz also had the second highest advertising budget at $34,282,600.00 out of all major “cracker” competitors.1 1

Ad $ Summary, 2009

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Triscuit:

In the U.S., Triscuit spends most of its advertising budget on television commercials, similar to other competitors. Most of their dollars go toward Network TV commercial spots, at $5,843,600.00, which is 47% of their total spending. Similarly to Wheat Thin’s advertising, Triscuit’s second highest advertising dollars are spent on Cable TV at 36%.1 1

Ad $ Summary, 2009

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Planters:

Just as with the other five cracker brands, Planters Nut brand spends 44% of their advertising money promoting their generic nuts (almonds, peanuts, cashews,etc.). In comparison to other snack cracker competitors, Planters spends the majority of their “regular nuts� budget on television advertisements, particularly Network TV and Cable TV.1 1

Ad $ Summary, 2009

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Lays:

Like all of the competing brands that were compared, Lays spends most of their advertising dollars, 89%, on promoting their classic or “regular” potato chips. The “various” other chips that may have more exotic flavors did not get anywhere near the advertising exposure as the classic flavored chips. This is parallel to budgets of every other competitve snack brand besides Tostitos. One noted exception with Lays advertising is that about half of their budget was spent on magazine advertisements for their classic potato chips. Lays spent much more money advertising in magazines, a relatively small advertising medium, in contrast to other comparable brands.1 1

Ad $ Summary, 2009

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Tostitos:

Unlike any of the other snack brand competitors, Tostitos brand tortilla chips spent the majority of their advertising dollars in 2009 on the “Scoops” division of their tortilla chips. In fact, the Scoops budget succeded 73% of the total dollars spent, while about 10% of their total budget was used on advertising regular “classic” tortilla chips. Similar to the other comparable snack brands, the majority of the Tostitos “Scoops” tortilla chips advertising dollars were spent on Television commercials, particularly Network TV commercials at 56% and cable TV at 43%.1 1

Ad $ Summary, 2009

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Sales Promotion: Competitors of Special K crackers use various promotion strategies to gain brand loyalty and capture the attention of consumers. Cheez-it, Ritz, Triscuit, Wheat Thins and Goldfish are five companies using promotion to sell crackers in this competitive market.

Cheez-It is the top competitor in the cracker industry and has used dozens of promotions in the past to secure this position. Kellogg’s current widespread product effort is teaming up with Microsoft for the Kellogg’s KINECT Xbox 360 promotion1. Kellogg’s specially marks the inside of the Cheez-It package to enter for a chance to win a free KINECT Xbox through their website. This promotion is targeted toward the male demographic. Currently Cheez-it is using social media to offer free samples of flavors

Another past promotion that was successful for Cheez-It was an in-store promotion joint with TV Guide that ran in 2008. Kroger Stores nationwide featured end-cap displays containing Cheez-it crackers and copies of the February 11, 2008 issue of TV Guide1. Also incorporated was NASCAR®, a Cheez-it sponsor, that provided a collectible holographic advertisement printed on the front and the back of the issue2. Customers who purchased a copy of the magazine, received a coupon for a free

on their facebook page and a sweepstakes to win a box of Cheez-its. year’s supply of free product. 1

“Cheez-Its Teams with TV Guide” Feb 2008

This partnership targeted the TV Guide readership and fans of NASCAR® as well as CheezIt consumers all in one promotion. This also helped strengthen the tie between the Sunshine cracker brand and family entertainment. 1 “Cheez-it Teams with Tv Guide” Feb 2008. 2 “Cheez-it Teams with Tv Guide” Feb 2008.

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Ritz also had an “Open for Fun” campaign

Ritz crackers claims that it is the official

coinciding with the sweepstakes that included

cracker of NASCAR®, and in 2008, Kraft ran a

television, print and radio advertising

promotion campaign to offer consumers the “Race

partnered with NASCAR®1. Jim Low, Senior

to Win a Ride” Sweepstakes. Kraft’s partnership

Brand Manager, Ritz crackers said,

with Roush Fenway Racing and Ford Racing Technology gave five lucky winners a trip to the NASCAR® Sprint Cup Series Championship Weekend at the Homestead-Miami Speedway. Along with this was also the opportunity to meet professional drivers and a chance to win a 2009 Ford Racing Mustang V6 sports car1. Kraft promoted the sweepstakes by specially marking packages of Ritz crackers which featured

“As the official cracker of NASCAR®, Ritz is thrilled to give race fans the chance to be right there in the heart of action with this sweepstake and bring fun to everyone through on-pack memorabilia.” Ritz is currently doing a Facebook promotion

a limited-edition cut out car. To aid in this limited

called “The Ritz Recipe Challenge”. By using

edition offer, Ritz crackers had lobby displays and

spokesperson Guy Fieri, and the incentive at a

combo cars in more than 12,000 retailers nationwide consisting of inflatable Ritz cars and

chance to win $20,000, this promotion generates

racing graphics. The Ritz cracker NASCAR® show

user content through social media2.

car appeared at

1 2

multiple retailers throughout the year to further brand awareness and boost sales. 1

“New Promotion” January 2008.

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“New Promotion” January 2008 “Promotions” 2011.


Triscuit has teamed up with Urban Farming, a non-profit organization in an effort to promote their product and encourage the growth of home farming. Kraft has planted seed packages in 4 million boxes of Triscuit crackers along with instructions on how to get started. Urban Farming has helped Kraft create a home farming website with information about growing vegetables at home, a crop guide, community forums and other resources for a healthier lifestyle1. The promotional website is also a social media outlet, allowing users to share photos, stories and tips to help with their environmental efforts2. Triscuit states its overall pledge is to create 50 community-based home farms during the 2010 year. This campaign shows Kraft’s concern over economic and environmental causes, targeting a market that is equally concerned and wants to help. 1

“Promotional Planting” July 2010

2

“Triscuit’s Campaign To Seed The Home Farming Movement” March 2010.

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Wheat Thins has been very successful with their on-the-road campaign of the “Crunch is Calling”. This campaign uses the social media outlet “Twitter” to find user’s posts relating to Wheat Thins, and then surprising the user with a large shipment of free product. Since last year, more than 1,300 boxes of Wheat Thins have been sent to unsuspecting fans who discussed the product on Facebook or Twitter1. The videos of these surprise greetings have been posted on Youtube and have generated over 1.2 million views. This campaign gives social media users an incentive for free product and has thousands of people using social media channels every month to post about Wheat Thins. This is free publicity for Wheat Thins and has successfully boosted their sales revenue. 1

“The Crunch is Calling” January 2011

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Pepperidge Farm’s Goldfish crackers are highly reliant on their website and social media outlets to promote and instigate brand loyalty. Their website is mainly target towards children as it has a “Team Xtreme Gear Sweepstakes” available only to children ages 6-13 years of age1. Goldfish partners with Team Xtreme, which encourages children to play sports and be active. The website also provides a variety of goldfish games, interactive videos, activities for children and a parental control option. By building brand loyalty at a young age, Goldfish promotion strategy targets children who will, in turn, convince their parents to purchase the product. 1

“Goldfish Fun” March 2011

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Challenges and Opportunities: Challenges: Pricey, but worth it:

So much to choose from:

Saving money and getting a good

It can be confusing when a consumer

deal is always something that is on a

walk into a grocery store and is

shopper’s mind. With the amount of

overwhelmed by the endless brand

snack crackers per pound starting to

decisions available to them. New

decline, the price is rising. Price is a

health crazes have been quite

major factor when choosing snacks.

popular, expanding the types of

Consumers will purchase brands

healthy snacks a consumer could

offering coupons or discounts at

purchase. The overpowering nature

certain times causing them to not

of the cracker aisle is an expansive

become brand loyal to a specific

market with numerous options.

cracker product. The retail price of

Potential purchases can conflict with

Kellogg’s Special K Snack Crack-

different brands, flavors and

ers is higher than other competing

healthier options.1

brands in the snack segment.1

1 Mintel: Crackers, 2009

1 Mintel: Crackers, 2009

Kellogg’s makes crackers?: When consumers think of the Kellogg’s brand, they think of their dominating brand share in the cereal market. Consumers do not associate Kellogg’s or Special K as a cracker manufacturer, making if difficult for consumers to gain awareness. With five major brands in the cracker market, Keebler’s Cheez-It, Nabisco’s Wheat Thins, Ritz, Triscuit and Pepperidge Farm’s Goldfish, it makes it a challenging market to enter. Promotion and brand awareness will be key in introducing Kellogg’s as a brand that not only produces cereal, but produces snack crackers.1 1 Mintel: Food Service Snacking options, 2010

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Opportunities:

A cracker a day, keeps the doctor away:

Crackers healthier than most chips:

With new health trends constantly appearing

Companies position crackers as healthier snacks

in the media, the desire to live healthy and stay

compared to chips. The connected trends of

thin is a growing concern. There are few cracker

health and wellness lead to an increase of baked

companies that pride themselves in offering low

snack products sales flavored with natural

calorie content and aiding in weight management. ingredients such as garlic, onion, pepper and Special K Snack Crackers are supplemented in the tomatoes. Crackers are already viewed as a “Special K Challenge�. This weight management

healthier option than salty snacks such as potato

program offers consumers an opportunity to use

chips but are not considered healthier than

Special K Snack Crackers, along with other

non-parity products such as yogurt or nuts

Special K products, to lose weight. The desire to

Within the healthy snack market, reduced fat, salt

stay healthy is a growing concern and Special K

and calories is increasingly more important to the

Snack Crackers have a healthy advantage over

average consumer.1

cracker competitors and other salty snack foods.1 1 Mintel: Crackers, 2009

1

Mintel: Healthy Snacking, 2009

All the right flavors: All cracker companies develop new flavors because flavor and satisfying the appetite of the consumer will influence market share. The flavoring cracker eating experience can be the most important elements to draw strengths from other snack eaters. Women purchasing habits are based on higher preference for good flavor and texture. While products associated with weight management can be initially tried, a company establishes product loyalty by great taste accompanied with healthy benefits. 1 1 Mintel: Crackers, 2009

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The Recommended Test Market City: Spokane DMA Map:

The above map is a display of the Spokane Designated Market Area. The Spokane DMA not only covers the city of Spokane, but also outlying counties in the states of Washington, Idaho, Montana, and Oregon as well as parts of British Columbia, Canada.

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Selecting the city of Spokane is perfect for test marketing new Special K Snack Crackers. This decision was bason on how closely its demographic data corresponds to the United States population as a whole. For instance, Special K crackers’ current target audience is females ages 4564, which make up 25.5% of the total United States population with 26.2% in the Spokane Designated Market Area. Spokane is the second largest city in the state of Washington with a DMA population of one million residents. This represents .36% of the total U.S. population. The city of Spokane, Washington also contains about 0.5% of total supermarkets in the United States at 160 store locations. In addition, the Spokane DMA has relatively limited media spillover into nondistribution markets. This is an advantage as it allows for accurate CPM numbers when comparing CPM data with the rest of the country. Spokane is featured on six of the seven top test market lists developed by prestigious research firms. Overall the size of the market in Spokane provides an accurate judgment of how Special K Snack Crackers will be received when sold nationally.1 1

U.S. Census Bureau- American Survey, 05-09 This chart shows how the gender, age, income, and marital status demographics of the Spokane DMA parallel those of the United States as a whole. Specifically, the gender demographics for Spokane and the United States only differ by 0.06% for males and 0.07% for females. The target demographic of married couples in Spokane is only 1.6% away from the national average of 50.3% married couples. Furthermore, the Spokane DMA and United States demographics are exactly the same for household incomes of $10,000 to $14,999. The chart clearly demonstrates how similar the Spokane DMA is to the rest of the country’s demographics, with no demographic of Spokane being any more than 10% away from the national average.

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Campaign Objectives: 1. 2. 3. 4.

Launch Special K Snack Crackers campaign on March 15th 2011. Target women ages 45-64 in the Spokane, WA DMA. Reach 60% of all commodity volume in Spokane supermarkets DMA. Position Special K Snack Crackers as a healthy alternative to traditional snack crackers and other healthy snack options. 5. Create awareness of healthy snacking with cohesive advertisements and promotional events. 6. Maintain a campaign budget of $126,230.40.

Launch Campaign March 15th, 2011 The campaign will be launched March 1st, 2011 in order to create awareness of Special K Snack Crackers’ participation in the Spokane Women’s Show on Friday April 15-17th and Bloomsday on Friday April 29th-30th. This campaign will make use of a flighting strategy by spending the most important advertising and promotional dollars immediately before the Women’s Show; the first major event that will bring significant awareness to the product. In addition, three different forms of couponing will be used. Specifically, a coupon will be presented to customers when they visit the Special K Snack Cracker booths at the Spokane Women’s Show and the Bloomsday Trade Show; while a separate coupon will be offered on the boxes of Special K Snack Crackers in stores. Three different advertising mediums will also be used to initiate product awareness to the target audience of Special K Snack Crackers that include radio, television and outdoor.

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Target Audience Special K Snack Crackers will be targeted to married women with no children, ages 45-64. These women live with their husbands and have a household income of at least $50,000-$59,000 a year. Women exclusively were chosen as the target consumer because not only are they more likely to consume snack crackers than men, but that they are more likely to be health conscious than men. This target audience was chosen because of primary research confirmed that targeting women in their 40’s and 50’s is best since they are not yet brand loyal. By the time these women are in their 60’s, they will be brand loyal to specific products, and not open to trying new Special K Snack Crackers. Women with no children in the household were chosen because Simmons Market Research showed that households with only two people were more likely to consume snack crackers.1 1

Mintel: Crackers, 2009

Reach To guarantee a successful launch of Special K Snack Crackers, Kellogg’s needs to reach 60% of all commodity volume in the local Spokane grocery stores. This figure ensures that the product will be seen by most people in the target audience.1 1

Simmons, Choices 3

Position Special K Snack Crackers are positioned as a healthy snacking alternative to other popular snack foods. Compared to TLC crackers, Wheat Thins, and Triscuits for example, Special K Snack Crackers offer a higher quantity serving size for much fewer calories. In today’s world, people, and more so women, are concerned with maintaining a healthy weight and figure. On-the-go it is often hard to find “healthy” foods to eat in between large meals. For these reasons, the target demographic will view Special K Snack Crackers as a perfect solution for maintaining their weight without having to go hungry.

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Create Awareness Using the Spokane Women’s Show and the Bloomsday Trade Show as opening promotional outlets, thousands of people who come to each event will be exposed to Special K Snack Crackers by taking home a free sample, along with a coupon to try other flavors of Special K Snack Crackers. Specifically, during Bloomsday, when customers visit the Special K Snack Crackers booth, they will receive a coupon for $0.50 off the purchase of their next box of Special K Snack Crackers. At the Spokane Women’s Show, customers who visit the booth will receive a coupon for $1.00 off their next purchase of Special K Snack Crackers. Lastly, coupons will be presented on the actual boxes of Special K Snack Crackers in stores. Customers will receive a coupon for “Buy 2 boxes of Special K Snack Crackers and get $1.00 off your next box”. The coupons placed on the box will run from September 2011-October 2011 and January-February 2012. By providing consumers with a free sample and coupons for more Special K Snack Crackers, first-time trial purchases will be generated and evolve into routine, “brand-loyal” purchases by consumers. Advertisements will be placed where our target audience is most likely to be exposed to them. Television advertisements will be during early morning shows between the hours of 6-10am, and during the evenings when the target audience is home from work from 9-11pm, Mondays through Fridays. Radio spots will occur from 6-10am in the morning every Monday through Friday when they are driving to work, and finally outside on billboards, where they will be exposed while driving to and from work, as well as when out driving during their leisure time. Additional advertising will happen through the Special K Snack Crackers Facebook page, where consumers will be able to write feedback about the crackers and find new coupons and other promotional events happening for the crackers.

Maintain Budget The budget will be maintained by only advertising in media outlets that our target audience frequently uses. Money will be distributed into advertising and promotional venues. $50,492.16 of the budget will be used on media advertisements, with $36,720.00 in distribution costs. An additional 75,738.24 will be spent on promotional costs. Ultimately a total budget of $126,230.40 will be sustained throughout the length of the entire campaign.

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Trade Distribution Plan: To release three flavors of Special K Snack Crackers, the products will be on the shelves of over 60% of grocery stores in the Spokane Designated Market Area (DMA). We selected six retailers with 62% of all commodity volume in 72 stores in the DMA to carry the products.

Slotting Fees: The average slotting allowance is $170 in the Northwest. The slotting allowance multiplied by three flavors of Special K crackers ($170 X 3) is equal to $510 for each store. This number multiplied by 72 stores is $36,720, the total slotting allowance cost.

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Sales Forecast: The projected sales for Special K Snack Crackers Test Market Campaign is $247,104. To calculate this figure, one must calculate the wholesale case price ($33). Take this figure and multiply by 52 weeks in the year, and multiply again by the 72 stores in the Spokane DMA. Finally, take this number and multiply by two cases sold per week per store to get the projected sales number. Two cases per week is below the average amount of cases sold compared to other cracker brands. This is justifiable in that it is a new product and will not have a competitive level of sales until product awareness has increased.

Projected Sales:

$33 wholesale case price * 52 weeks * 72 stores * 2 cases weekly sales =

$247,104 projected sales

Advertising Budget in Spokane DMA:

($247,104 projected sales - $36,720 distribution costs) * 60%=

$126,230.40 The advertising budget is $126,230.40 which is 60% of projected sales minus the distribution costs ($36,720).

Profit:

($247,104 projected sales- $36,720 distribution costs) * 40% = $84,153.60- $906.43 over Advertising Budget= $83,247.17 Estimated Media Budget (40% of campaign budget)- $50,492.16 Estimated Sales Promotions Budget (60% of campaign budget)- $75,738.24

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Target Market Recommendation: Primary Research confirms that a majority of cracker eaters are women, as opposed to men who are not inclined to eat crackers. With this knowledge from primary and secondary resources, Special K Snack Crackers will advertise their products to women only.1 Women ages 45-64 were chosen as the primary target market due to the findings in the research conducted. Women in this age group have relatively high populations and high index numbers in comparison with other age demographics of females. The high index number confirms that women in the targeted age group are already consuming crackers as a snack food. Primary research shows that married women were chosen over women of other marital status options due to higher index numbers. Research also shows that this primary target market would have a household income of $50,000-$59,999 and have graduated high school.2 1 Mintel: Crackers, 2009 2 Simmons

Healthy Holly Holly is thy type of woman who looks at the nutrition facts on the side of the box in the grocery store. She likes to plan healthy meals for her and her husband, but finds that she has little time or motivation to actually do the cooking. Though Holly considers her diet to be healthy, she usually is not the first to try new foods and counts her calories in the foods she does eat. Her healthy lifestyle is shared with her husband and she is not afraid to try new diets. Overall, Healthy Holly is a health conscious woman who tries hard to maintain her healthy lifestyle but still needing the push and motivation to continue on this path.

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Secondary Target Market:

Our secondary target markets that were considered but not recommended are women ages 35-44 with a household income of $40,000 to $44,999. Primary research shows that these women are married with two children and have attended some college in the past.

Savvy Sarah Savvy Sarah is a younger version of Healthy Holly in many aspects. She is conscious of her calorie intake but does not completely restrict her eating habits. She enjoys living a healthy lifestyle but does not eat healthy or exercise on a daily basis. She snacks regularly on healthy items but also allows herself to indulge occasionally on high calorie sweets. Savvy Sarah does not always have the money or the time to cook healthy meals with fresh and expensive ingredients. This target demographic enjoys feeling good on the inside and cares about her outer appearance and staying in shape. Calories do not rule her life as she enjoys sampling foods she knows are unhealthy. Savvy Sarah considers herself a generally healthy person who is not afraid to order dessert.

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Media:

Media Objectives:

1. Use radio, television, and billboard advertisements along with the promotional events; Bloomsday, The Women’s Show and Coupons, to create line extension awareness of Special K Snack Crackers among women 45-64. 2. Declare Special K Snack Crackers as a delicious alternative to regular snack crackers, offering a much larger serving size for fewer calories than most other snack foods in general. 3. Effectively use the media budget of $50,492,000.16 to advertise through radio, television, and outdoor billboards, while successfully achieving 300 GRP’s over a period of 13 weeks. 4. The promotional events at the Bloomsda Trade Show, The Women’s Show and Coupons presented on the Special K crackers box between the months of September – October and January-February, will generate product trial of Special K crackers in all three flavors. 5. Use the flighting advertising strategy throughout the entire campaign to continually create awareness and spark interest for the product among target consumers.

Media Rationale: In order for the Special K Snack Crackers advertising campaign to be as effective as possible, many different media vehicles were researched and considered. Ultimately, three main media outlets were used to best reach the target demographic. Women ages 45-64 do not spend a substantially large amount of time on the internet. Instead, 67% women in the target demographic use television viewing as their main source of entertainment. In addition to television, the quintile data from Simmons Market Research shows that radio is a primary way to reach the target audience with an index number of 106 in quintile #1. Outdoor billboard advertising was chosen because Simmons Market Research showed a high correspondence of outdoor advertisements being viewed by female cracker eaters, aged 45-64. Using these media outlets along with promotional appearances in community events like the Spokane Women’s Show and the Bloomsday Trade Show, Special K Snack Crackers will effectively reach both their primary and secondary target consumers during several points throughout the day.1 1

Simmons, Choices 3

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Rationale: Mintel and Simmons were extremely helpful when conducting secondary research for this test market campaign. By using these resources, the target audience for Special K Crackers was pinpointed.

With an index number of 104 and a higher population than the male demographic in the United States, women would be a good place to start targeting for information. According to this Simmons data, they are more likely to consume snack products in their households. Mintel data on gender and cracker consumption in 2008 confirms our findings as 70% of females choose crackers for a snack food compared to only 66% of males.1 1

Simmons Choices 3

The highest population in the demographic of people in the United States who enjoy eating snack foods is in the category of “graduated high school�. This also has the highest index number of all education levels at 105.1 1

Simmons Choices 3

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Even though there is a higher total population and highest index number in the age group of 65+1, targeting this age group would not be ideal as Mintel suggests that healthy food brands should approach the senior market by building loyalty with consumers in their fifties as they are first discovering healthier snack alternatives. According to Mintel studies on cracker consumption, the age group consuming the highest number of crackers and snack foods is 45-54, with 89%. The age group of 35-44 comes in a close second with 87% of the population in 2008. The age group of 65+ had only an 80% consumption rate, the lowest in the data set. Choosing the age demographics of 45-54 and ages 55-64 with an index number of 102 ensures reaching more people with relatively high index numbers. The age group of 45-54 was questionable as it has a lower index number but the population is very high and targeting people in their fifties is suggested for continued brand loyalty in the future.

1

Mintel; Senior Purchasing Desicions, May 2010

Adults who consume snack foods such as crackers or grahams are more likely to be married compared to other marital status options, as seen by index number of 104 and a population of 46,298.1 1

Simmons Choices 3

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The best income level to target with advertising are households that make $50,000-$59,999 a year. Even though and income of $75K+ has the highest population, the index number does not correlate well. An income level of $50K-$59,999 has the third highest population and second highest index number making it a good indicator for a target audience proposition.

The average household size of people in the United States who consume snack foods is two people. A two person household also has the highest population and a high index number of 101. A four person household has the highest index number of 106, but also has a lower population compared to other household size choices.1 1

Simmons Choices 3

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Internet:

Internet usage and the target audience does not correlate well in all quintiles. For this reason, online advertising will be a secondary source of advertising for this campaign as the data is not as strong as other media usage patterns for the specific target audience.1 1

Simmons, Choices 3

Radio:

Radio is a primary way to reach the target audience along side television. With an index number of 106 in quintile I, this tells us there is a very strong correlation between listening to the radio and eating snack foods if you are a female.1 1

Simmons, Choices 3

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Outdoor:

This table of outdoor advertising quintiles is something to consider. There are very strong numbers for the first four quintiles making this a secondary advertising source along with the internet. This could also possibly be a primary source for advertising as the budget allows for it.

Television :

According to this quintile table, television is an acceptable way to target women who consume snack foods. In this case, the highest quintiles have roughly the biggest populations as well as the largest index numbers.1 1

Simmons Choices 3

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Primetime TV is a great way to reach the suggested target audience. The first three quintiles in this chart have the highest index numbers for the entire category and it mirrors the TV All Day table perfectly.1 1

Simmons, Choices 3

Media Considered but Not Chosen: Print:

According to Simmons information, females in this target audience read the Sunday newspaper more so than the daily print. With index numbers of 104 and 102, this would be considered an addequate way to target females in the age group of 35-64 who consume snack crackers. Although this is a strong media, it is more expensive and the other mediums have stronger correlations with our target audience. 1 1

Simmons Choices 3

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Cost Efficiency Analysis:

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Cost Efficiency Analysis Continued:

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Media Flow Chart:

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Creative:

Creative Objectives:

Special K Snack Crackers allows consumers a healthy food to eat in between meals without loading up on calories. Modern Science now advises that people eat frequent small meals throughout the day to keep their metabolism strong; Special K Snack Crackers enables consumers to do this without going hungry while also maintaining their weight. The Special K brand itself promotes a wholesome lifestyle through active living and healthy eating. The creative objective of this campaign is to position Special K Snack Crackers as the solution for women to not feel guilty while snacking in between meals. Women ages 45-64 who are slightly more health conscious will be targeted because they will see the benefit of a low calorie cracker with a much larger serving size than comparable products in the segment. Special K Snack Crackers will be positioned as a healthy alternative to both parity and non-parity products alike and will be advertised in direct competition with general snack foods both nutritious and not. Positioning the product this way allows the target consumer to notice the differentiating factors of Special K Snack Crackers compared to other foods found on the same shelf in the supermarket. The cracker advertisements in this campaign will present both the low calorie content as well as the large serving size available to consumers who enjoy healthy snacking. In essence, Special K Snack Crackers deliver consumers the satisfying taste they want without having to worry about calorie content.

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Creative Brief: Client: Kellogg’s Product: Special K Snack Crackers Launch Date: March 15, 2011 Target Market: Women ages 45-64 What are we selling? Why are we here? Special K Snack Crackers are a healthy cracker that allows you to have more per serving than the leading brand without the cost of calories. Women can snack with ease and fulfillment with these snack crackers. Who are we talking to? This campaign is targeting women ages 45-64 that have a high consumption rate for crackers. They have graduated high school and have a household income of $50,000-$59,999. These women are married and are generally health conscious when it comes to the consumption of snack foods. Though they like to think they have a balanced diet, they have little time to prepare or eat healthy. Why? What is the most significant change we can create, as an objective? OR What obstacle are we trying to overcome? Special K Snack Crackers are perfect for the on-thego woman. They are a convenient cracker that can be easily packed up and handy when you are out and about. Women can overcome their fear of over-snacking because you are getting more for fewer calories when comparing to our competing brand.

How? What can propel this change as a strategy? What are we trying to say? What is the most important thing we need to say? Kellogg’s Special K Snack Crackers are a convincing reason to snack healthy and be filled up without the excess of calories. These crackers will fit into our target demographic easily because of their willingness to make a change to their diet to become more healthy. What makes this believable? What are the key insights? -90 calories for 17 crackers -3 delicious flavors; Multi-Grain, Sun-Dried Tomato Basil, and Savory Herb -A healthy snack for weight management -Options are plentiful for snacking and are easily paired with dips and cheeses What do we need to keep in mind? What are the mandatories? -Kellogg’s logo must be displayed on all advertisements -Special K Snack Cracker box will be in all print ads as well as TV commercials -Facebook logo to be visible on all ads and coupons. -Nutritional benefits of Special K Snack Crackers -Three different flavor options to tailor to different tastes -Larger serving sizes than the leading competition Campaign Preposition “You deserve more.”

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Radio Spot #1: Spring/Summer Radio Spot Client: Kelloggs Medium: Morning Drive Time and Afternoon Drive Time Unit of Space: 30 seconds Target Audience: Women 45-65 Tammy: “What a great work out. You are an awesome yoga teacher!” Yoga Instructor: “Namaste. I love having a strong body and a strong mind.” Tammy: “I always get so hungry after classes, what do you eat after you teach?” Yoga Instructor: “Why Special K Snack Crackers of course.” Tammy: “Special K Snack Crackers? What are those?” Yoga Instructor: “They’re new and taste great! And with 17 crackers for only 90 calories, I can fill up and not ruin my work out.” Tammy: “So that’s your secret!” Yoga Instructor: “Here, try one.” Tammy: “Mmm Namaste!” Instructor: “Only 90 calories in 17 crackers. Celebrate your weight with new Special K Snack Crackers. You deserve more.” Before Bloomsday: “Come try Special K Snack Cracker flavors like Savory Herb and Sundried Tomato Basil for FREE at the Bloomsday Trade Show April 29th. Only 90 calories in 17 crackers. Celebrate your weight with new Special K Snack Crackers. You deserve more.” After Bloomsday: “Eating healthy now includes tasty flavors like Savory Herb and Sundried Tomato Basil. Only 90 calories in 17 crackers. Celebrate your weight with new Special K Snack Crackers. You deserve more.”

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Radio Spot #2:

Holiday Radio Spot: Client: Kelloggs Medium: Morning Drive Time and Afternoon Drive Time Unit of Space: 30 seconds Target Audience: Women 45-64 (MUSIC: JINGLE BELLS IN AND UNDER) (SFX: Pencil scribbling on paper) Susan: “Dear Santa. My stomach is feeling not so good this holiday season. In between all the Christmas parties, with candy canes and eggnog, my body is craving a healthy snack! This year, I’m asking for a box of new Special K Snack Crackers. With 17 crackers for only 90 calories, my stomach can take a break and I can enjoy the holidays. Thanks Santa! Sincerely, Susan.” Announcer: “Give yourself the gift of a healthy break this holiday season. Try new Special K Snack Crackers, 17 crackers for only 90 calories. Special K Snack Crackers, You deserve more.” (MUSIC: OUT)

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Outdoor:

This Special K Snack Crackers billboard will be on display during the spring and summer months. The billboard shows a woman during a work out on a run in the beautiful outdoors. The headline reads, “Replenish yourself with some healthy satisfaction.” This billboard shows that Special K Snack Crackers are a healthy snack that won’t spoil a work out. Special K Snack Crackers are represented as an addition to a healthy lifestyle and targeted towards those who make fitness a part of their daily lives. This advertisement shows potential consumers just how easy Special K Snack Crackers will fit into their daily routine and leave their bodies feeling healthy and replenished.

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The Special K Snack Crackers holiday billboard will be on display in the month of December. This billboard shows common yet unhealthy holiday treats that are high in calories and fat. Finding healthy options around the holiday season can be stressful. The solution to this problem is provided in this advertisement with Special K Snack Crackers. This advertisment reassures the consumer to “relax� by showing them they can enjoy Special K Snack Crackers and avoid high calorie temptations. Weight gain is a common occurence around the holiday season, so this message will be relatable and well received by our target market.

Where to find the Billboards.

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Television: Spot #1:

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Spot #2:

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Promotions: Promotions is a vital part of any campaign to launch a new product so that it is received well by the target audience. Promotions allow a company to test a product among the target demographic for short periods of time; usually at large community events. In order to initiate Special K Snack Crackers successfully, promotional methods include coupon distribution, free samples and booths at the Spokane Women’s Show and the Bloomsday Trade Show in Spokane, Washington.

Coupons:

Coupons will be placed on Special K Snack Crackers boxes throughout the months of September, October, January, and February. These coupons will allow a consumer to receive “$1.00 off the next box of Special K Snack Crackers” after buying two boxes of the product. Coupons will also be vital at the two trade shows that Special K will be participating in during the campaign. At the Women’s Trade Show, participants will receive a coupon for “$1.00 off” their next purchase of Special K Snack Crackers. Likewise, at the Bloomsday Trade Show, visitors will be given a coupon for “$0.50 off” their next purchase of Special K Snack Crackers. The combination of all three of these coupons will create brand awareness which will lead to product trial.

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Bloomsday: The Bloomsday Trade Show on April 29th and 30th is an annual event that coincides with the Lilac Bloomsday Run. Both the trade show and run attract nearly 50,000 runners and fitness enthusiasts with free admission for the general public into the trade show. Women have steadily increased as the majority gender at the event since 1986. Women now make up 60% of the attendees at Bloomsday according to data from 2010. At the Special K Snack Cracker booth, samples of the product will be distributed to interested patrons. Included with the cracker samples will be a “$0.50 off” coupon to increase the target audiences incentive to purchase their first box of Special K Snack Crackers. The Trade Show is made up of a variety of vendors, all with different products, and will be an effective way to introduce Special K Snack Crackers as a healthy snack product amongst many already established healthy-living brands attending the Trade Show. A 10’ x 10’ booth at Bloomsday costs $750.00 with a $50.00 fee for sampling food or drink items throughout the Trade Show.

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The Spokane Women’s Show : The Spokane Women’s Show, which is held from Friday April 15-17th 2011 is an annual trade show coinciding with Susan G. Komen For the Cure. This event showcases women’s interests in general which include but is not limited to; cooking, weight loss, fashion and music. Combined, the walk and the Women’s trade show attract more than 18,000 people. Held at the Spokane Convention Center, the trade show will allow Special K Snack Crackers to reach the target market of slightly more health conscious people as healthy lifestyles is one of the main interests at the event. The show is owned by the Providence Women’s Health Center and while it is partnered with Susan G. Komen For the Cure, Special K will not be sponsoring or affiliating with this particular event in any way as not to compete with seasoned brands such as Yoplait Yogurt. However, Susan G. Komen For the Cure participants receive a $2.00 discount on their admission to the Women’s Trade Show and this is why the Special K Snack Cracker campaign can include the walk participants in the expected audience turnout. A fee for a 10’ x 10’ skirted booth, a 6’ skirted table and two chairs will cost $450.00 for all three days of the trade show. To further bring in interested visitors and establish brand awareness, Special K Snack Crackers will post a website link on the Spokane Women’s Show Exhibitor page that will last for six months. At the Special K Snack Crackers booth, samples will be distributed along with coupons for “$1.00 off their next purchase of Special K Snack Crackers.” The booth in total will cost Special K Snack Crackers $23,202.90 which includes all booth supplies as well as sampling and coupon costs for the full three days. This trade show is filled with a variety of product distribution and vendors and is a budget friendly and effective way to sample Special K Snack Crackers in the Spokane market.

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Social Media :

Special K’s Facebook page will be up year round, utilizing the free networking it offers to connect with our consumers. The Facebook page keeps the brand up-to-date with modern communication and entertainment styles. The page will be updated as necessary and statuses will notify the page’s followers with weight management tips as well as the most effective ways to burn calories throughout the day.

Also on the page is a link to find coupons that Special K is currently offering and this is a place

Special K Snack Crackers will utilize couponing techniques in the future after this initial campaign.

Facebook allows the Special K brand to not only connect through the web, but also through

social media such as smart phone applications. These applications promote events such as the “Special K Challenge”, a two-week challenge inspiring people to reach their weight loss goals while also consuming Special K Products.

Special K also promotes humanitarian efforts while allowing consumers to be interactive with

the brand. By texting or sharing a picture of your breakfast, Kellogg’s will help share breakfasts with kids who need them the most. Interaction is also available in the “discussion” section of the Facebook page as it lets consumers talk to people with similar healthy lifestyles and goals about Special K products and promotions.

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Budget Breakdown: Projected Sales: $247,104 Profit: $83,247.17 Campaign Budget: $127,136.83

Distribution costs: $36,720

Estimated Media Budget: $50,492.16

Radio Budget: $16,224.00 Television Budget: $16,800.00 Outdoor Budget: $18,000.00

Estimated Promotions Budget: $75,738.24

Spokane Womens Show and Race for the Cure: $23,202.90 Bloomsday Budget: $36,874.09 On-the-Box Coupons Budget: $16,035.84

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Itemized Media and Promotional Budget: 1ST QUARTER: MARCH-MAY Radio KEYF Day Part Mon.-Fri. 6am-10am $30 per :30 sec. spot with 160 spots= $4,800 KQNT Day Part Mon.-Fri. 6am-10am $26 per :30 sec. spot with 80 spots= $2,080 KXLY Day Part Mon.-Fri. 6am-10am $23 per :30 sec. spot with 80 spots= $1,840 Television KSKN News at 10pm Day Part Primetime 9pm-11pm Mon.-Fri. $200.00 per :30 sec. spot with 20 spots= $4,000 KXLY-Regis and Kelly Day Part Mon. and Fri. 9-10am $90.00 per :30 sec. spot with 8 spots= $720.00 KXLY- The View Day Part Mon. and Fri. 10-11am $110.00 per :30 sec. spot with 8 spots= $880.00

Outdoor

Billboard Permanent Bulletin 1 4-week showing- $6,000 Promotional Spokane Women’s Show and Race for the Cure •Entry Fee: $500.00 •Food Handler Fee: $20.00 •Sampling Supplies: $2,439.45 •Coupons: $19,440 •Event Workers: $303.45 •Misc. and Signage: $500.00 •Total: $23,202.90 Bloomsday Booth and Samples •Entry Fee: $800.00 •Food Handler Fee: $20.00 •Sampling Supplies: $5,933.30 •Coupons: $29,000 •Event Workers:$320.79 •Misc. and Signage: $500.00 •Total: $36,574.09 Media Spending: $20,320 Promotional Spending: $59,776.99 Total Spending 1st quarter: $80,096.99

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2ND QUARTER: JUNE-AUGUST Radio KEYF Day Part Mon.-Fri. 6am-10am $30 per :30 sec. spot with 160 spots= $4,800 KQNT Day Part Mon.-Fri. 6am-10am $26 per :30 sec. spot with 80 spots= $2,080 KXLY Day Part Mon.-Fri. 6am-10am $23 per :30 sec. spot with 80 spots= $1,840 Television KSKN News at 10pm Day Part Primetime 9pm-11pm Mon.-Fri. $200.00 per :30 sec. spot with 20 spots= $4,000 KXLY-Regis and Kelly Day Part Mon. and Fri. 9-10am $90.00 per :30 sec. spot with 8 spots= $720.00 KXLY- The View Day Part Mon. and Fri. 10-11am $110.00 per :30 sec. spot with 8 spots= $880.00 Outdoor Billboard Permanent Bulletin 1 4-week showing- $6,000 Media Spending:$20,320 Promotional Spending: $0.00 Total Spending 2nd Quarter: $20,320

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3RD QUARTER: SEPTEMBER-OCTOBER Radio KEYF

Day Part Mon.-Fri. 6am-10am $30 per :30 sec. spot with 120 spots= $3,600 Promotional

On-the-Box Coupons

8 weeks at $1,002.24 per week = $8,017.92 Media Spending: $3,600

Promotional Spending: $8,017.92

Total Spending 3rd Quarter: $11,617.92 4TH QUARTER: DECEMBER-FEBRUARY Radio KEYF

Day Part Mon.-Fri. 6am-10am $30 per :30 sec. spot with 160 spots= $4,800 KQNT

Day Part Mon.-Fri. 6am-10am $26 per :30 sec. spot with 80 spots= $2,080 KXLY

Day Part Mon.-Fri. 6am-10am $23 per :30 sec. spot with 80 spots= $1,840 Television

KSKN News at 10pm

Day Part Primetime 9pm-11pm Mon.-Fri. $200.00 per :30 sec. spot with 20 spots= $4,000 KXLY-Regis and Kelly

Day Part Mon. and Fri. 9-10am $90.00 per :30 sec. spot with 8 spots= $720.00 KXLY- The View

Day Part Mon. and Fri. 10-11am $110.00 per :30 sec. spot with 8 spots= $880.00 Outdoor

Billboard Permanent Bulletin 1 4-week showing- $6,000

Media Spending:$20,320.00

Promotional

Promotional Spending: $8,017.92

On-the-Box Coupons

Total Spending 4th Quarter: $20,320.00

8 weeks at $1,002.24 per week = $8,017.92

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Citations:

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Appendix: Special K Test Market Questions- Asked to Supermarket Managers 1. How many cases are sold per week on average? How much in each case?

Wheat thins-

Goldfish-

Ritz-

Cheez-Its-

2. Which brands sell the most? 3. What are the major competing products in the snack food category? (ex: nuts, popcorn, chips. etc. Brands?) 4. What types of promotions are common for these products? 5. Which brands frequently place themselves outside the cracker isle? (end cap displays, etc.) 6. What are the most common questions customers ask about snack crackers? 7. Any other information that would be useful?

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Outlaw Media Andrea Gansz, Ashton Steele, Danielle LaClair, Jillian Ranney, Meagan Houck, Sam Boettcher, Titus Lam

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Special K  

Target Market Campaign

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