Clif Bar Media Buying Project By: Jena Moore
Company Overview Clif Bar is a privately held company that produces and sells healthy energy bars and other nutritious food options. The company offers four distinct lines of products: Clif bars, Luna bars, Builder’s bar and Clif kids. Clif Bar is certified organic, meaning 70% of ingredients are derived from a natural source.
The company positions themselves as a company that has 5 aspirations: Sustain our planet, community, business, people and brands.
SWOT Strengths
-Private company -Organic Certified -Cause Related Company -Mainstream Distribution
Threats
-Smaller, local nutrition bar companies -Public companies offering organic options -Companies expanding products lines
Weaknesses
-Private Company -Narrow Product Expansion
Opportunities
-Expansion of product offerings -Growth of company due to rise in consumer preference for ‘healthy options’ -Partnering with cause related events
Competitors And Revenue Top three competitors include: Nestle, General Mills, Mondelez International Inc. Clif Bar is one of the only private label companies to go against large conglomerate companies. Revenue is currently: $1.1 billion
The company employs approximately: 243 people.
Marketing Goal Clif Bar’s objective is to: increase prominence of brand and sales. The company has an USP (unique selling point) of being certified organic. The company offers nutritious, energy-boosting bars derived from natural ingredients. Targeted marketing towards athletic audiences will be used in order to increase sales. The additional revenue from sales will help Clif Bar expand their market share in the energy/nutrition bar category.
Target Audience Men and women from ages 18-49. Adults with an income of $75,000 and up. Adults with an occupation in the professional field of management, business, sales and/or financial operations.
Target audience is likely to be Caucasian and living in the southern/western part of the US.
On an Average Day.. 5 AM-Wake up and begin day with a morning workout 6:30 AM-Prepare for work while enjoying the news 7:45 AM-Leave for work and tune into favorite radio channels 9 AM-Buy coffee, check daily news, social media, email 12:30 PM-Have lunch outside or take short walk around the block 5:30 PM-Leave the office and head to the grocery store to grab ingredients for a new dinner recipe 7 PM-Cook dinner while listening to the evening news 8-11 PM-Relax by watching favorite shows
Media Objective The media objective is to: increase frequency and reach of brand by targeting audiences identified by MRI+ database. This will be achieved by using different vehicles of national media mediums. There is a total media spending budget of $10 million. The success of increasing frequency and reach will aid in the success of the overall marketing goal for the company.
Media Strategies In order to achieve reach and frequency, two strategies will be implemented. o First Strategy: Generate reach.
o Second Strategy: Create frequency.
o Reach will be achieved in the beginning the campaign through TV. It will also be continued throughout the entire campaign because several media.
o The addition of several other media vehicles will be included to achieve frequency. The vehicles include magazine, radio, social media and outdoor space.
o TV is a valuable media vehicle because it involves sight, sound and motion. TV is more likely to resonate with consumers and generate a greater audience.
o The start of Second Strategy will begin when the TV strategy is nearing it’s end. It will be longer because the goal is to insure the consumers are impacted by the advertisement and can recall the brand.
Geography and Seasonality The campaign will run continually throughout the year. There will be small bursts of increased advertising from April-August due to running season (5-k, marathon, half marathon). The running season is a key sales period for nutritional bars. The campaign will have an emphasis in the western/southern part of the US.
Media Mix-Strategy One: TV Beginning on January 1, there will be a 3 week advertisement run on national TV during prime time hours. The advertisement will appear in cable channels such as: ESPN, E!, and CNBC. It will also appear on broadcast networks such as: ABC, NBC and Fox. These channels are the most watched networks by targeted audience. Data shows the target audience has high prime time/news consumption.
TV Cont. On the last week of the Prime Time run, the next part of the TV strategy will be implemented.
Beginning on the third week of January, there will be a 6 week advertisement run during Early News hours. The advertisement will appear on major broadcast networks such as: Fox, NBC and ABC.
These networks are identified as a regular source of news for the target audience.
TV Cont. Total beginning budget=$10 million; Used=$0. For Prime Time Hours: CPP=$25,300.* Total number of weeks=3; desired GRPs per week=45. Total GRPs per Campaign: 45 (X) 3= 135 Final Budget Cost: 45 (X) $25,300= $3,415,500 For Early News Hours: Single GRP costs $7,700.* Total Number of weeks=6; Desired GRPs per week=25. Total GRPs per Campaign: 25 (X) 6= 150 Final Budget Cost: 150 (X) $7,700= $1,155,000 *Numbers are not based on real GRP cost
NUMBERS, TERMS and FORMULAS GRP (Gross Rating Points) Formula: Reach (X) Frequency of Network/show CPP (Cost Per Point): Price of single GRP Average amount of GRPs per week of TV: 25-50 Standard Ratio for effective TV campaign: 180 Total GRPs per 13 weeks
Total GRPs per Campaign Formula: GRP rate per week (X) Total # of weeks Final Budget Formula: Total GRPs (X) CPP
TV Cont. ď‚š In total, the TV media strategy will include 250 GRPs per 8 weeks. The cost will be $4,570,500. ď‚š The strategy will achieve reach because TV attracts the largest audience of any media medium. It will also achieve frequency because of the high amount of GRPs per total weeks.
Media Mix-Strategy Two: Magazine Beginning in March, advertisements will run in three different magazines: Runner’s World, Men’s Health and Shape. The timing of magazine placements coincides with race training season for running. For Runner’s World, the advertisement will run 6 consecutive months on a half page in 4 color. This magazine was chosen because it appeals to both men and women and matches the target audience demographics. The magazine was also chosen because it is one of the most read magazines for the group. The average six month circulation is 676,824 people. (92,755 X 6=556,530)
Magazine Cont. For Men’s Health, the advertisement will run 5 consecutive months on a half page in 4 color.
The magazine was chosen because it is the highest rated media vehicle among the target audience. The magazine also has a high circulation of 1,884,156 per 6 months. (127,455 X 5=637,275)
Magazine Cont. ď‚š For Shape, the advertisement will run 5 consecutive months on a half page in 4 color. ď‚š The magazine was chosen because it is popular with the target. It was also chosen because it relates to women. The average 6 month circulation is 1,614,641. (119,661 X 5=598,305)
Media Mix-Strategy Two: Radio Network radio was chosen due to it’s high frequency among viewers. Radio was rated as a major media source for the target audience.
The advertisement would run on network radio outlets for a total of 8 weeks. Network radio stations include: Sports, Special events, News.
Radio Cont. The same formula for TV is used to calculate budget and total GRPs. For Network Radio: CPP=$8,500.* Total Number of Weeks=8; Desired GRPs per week=50.
Total GRPs per Campaign: 50 (X) 8= 400 Final Budget Cost: 400 (X) 8,500= $3,400,000
NUMBERS, TERMS and FORMULAS GRP (Gross Rating Points) Formula: Reach (X) Frequency of Network/show CPP (Cost Per Point): Price of single GRP Average amount of GRPs per week of TV: 25-50 Standard Ratio for effective TV campaign: 180 Total GRPs per 13 weeks Total GRPs per Campaign Formula: GRP rate per week (X) Total # of weeks
*Numbers are not based on real GRP cost
Final Budget Formula: Total GRPs (X) CPP
Media Mix-Strategy Two: Social Media Social media was chosen to broaden the reach and frequency of the campaign. The target audience identified internet as a main source of their information. A unique Social Media campaign will be created in order to drive traffic and revenue to Clif Bar’s site. The campaign will include an interactive aspect (I.E. Game or Question) and a coupon to appeal to consumers. It will appear on sites such as Huffington Post, Gmail, Living Social, NYTimes and Pandora (Indicated as heavily consumed by target). The total impressions will be 9 million 4 hundred thousand and the total cost will be $94,000.
CPM=$10; Desired Impressions=9 million 4 hundred (10 X 9,400,000)/1000=$94,000
Media Mix-Strategy Two: Outdoor Outdoor was chosen in order to address geography. There is a larger population of the target audience living in the southern and western region of the US. Due to this distribution, the outdoor advertisement will be primarily in the south and western parts of the US. The type of media will be bulletins. The Coverage will be the general market; however, 75 percent of the advertisements will run in the south and west regions. The other 25 percent will be distributed evenly throughout larger US cities. The total amount of units will be 12 and the total cost will be $142,740.
Cost per 12 National units=$142,740
Total Budget Breakdown o Beginning Budget: $10 Million TV: $4,570,500 Magazine: $1,792,110 Radio: $3,400,000 Social Media: $94,000 Outdoor: $142,740
o Total Use of Budget: $9,999,350 o Final Leftover Budget: $650
Yearly Advertising Flowchart
Yearly Chart Cont.
Enlarged TRP/Cost
Increased Months of Advertising