Alyssa Orozco Technology for Marketing Target Profile Tostitos Scoops Tortilla Chips
Key Segments According to the charts, Tostito’s main consumers are held in Affluent Suburban Spreads and Comfortable Country category with the behavioral lifestyle of Older Bustling Families. Comfortable country index at 127, a 27% more likely to buy Tostitos Scoops, while Older Bustling Families are 60% more likely to buy. With the percent total volume, 22% of Tostitos Scoops’ customers live in Comfortable country and 17.3% are older bustling families.
Product Category Tortilla chips index heavy on Younger and Older Bustling Families, similar to Tostitos Scoops.
Similar to Tostitos Scoops, Older Bustling Families have the highest percentage of consumers buying the product. In Plain Rural Living, it is slightly more preferred in the product category.
Competition
The top three competitors based on the percent penetration for Tostitos chips are On the Border(4%), Baked! Tostitos Scoops(3%), and Grande(3%). The top three competitors based on the demand index are Herrs (135), Juanitas (130), and Medallion (128).
Brands with Similar Consumers Herrs (Snacks : Tortilla Chips) Oz. *
% Pen 1%
Demand Index 135
Juanitas (Snacks : Tortilla Chips) Oz. **
1%
130
Medallion (Snacks : Tortilla Chips) Oz. *
1%
128
Grande (Snacks : Tortilla Chips) Oz.
3%
127
Herrs Dippers (Snacks : Tortilla Chips) Oz. *
1%
127
Baked! Tostitos Scoops! (Snacks : Tortilla Chips) Oz.
3%
126
Snyders Of Hanover (Snacks : Tortilla Chips) Oz.
2%
126
Old Dutch (Snacks : Tortilla Chips) Oz. *
1%
126
Baked! Doritos (Snacks : Tortilla Chips) Oz. *
1%
125
On The Border (Snacks : Tortilla Chips) Oz.
4%
124
The number one competitor for Tostitos Scoops is Grande, followed by On The Border. Grande has the highest index with higher percent penetration. 27% of consumers are more likely to buy Grande and 3% of their customers have bought the product at least once.
Competition Index Level
Based on each of the top competitors, their consumers have the same behavioral patters between families and either living in Affluent Suburban Spreads or Comfortable Country. For Grande, Older Bustling Families are 23% higher than Tostitos Scoops with an Index at 160. Even though Grande’s index for Comfortable Country’s is a little lower than Tostitos Scoops, they have higher indexes that reach over 100% in Affluent Suburban Spreads that consumers are more likely to buy Grande than Tostitos Scoops. Also, Grande has a greater demand in all the families compared to Tostitos Scoops.
Competition’s Core Customers
Based on the top competitor’s core customers, they all have the same pattern when looking at the total as they did in the demand index. With Grande’s highest percent total volume, they have the highest percent for Older Bustling Families at 19.8% which is greater than the percentage of Tostitos Scoops’ customers for that category. Where Comfortable Country and Older Bustling Families intersect, the key segments, Grande has 5.4% of its customers buying their product, while Tostitos Scoops has 4.1%.
Opportunities After comparing the top competitors, Grande is the brand that competes heavily with Tostitos Scoops by having more heavy consumers with families and at a higher index level. Tostitos has an opportunity to gain market share by targeting all the families to steal Grande’s customers and raise their index level and customers that live in Affluent Suburban Spreads.
Level of Important Demographic Criteria Tostitos Scoops Importance of Demographic Attributes Attributes Number of Persons Household Composition Household Income Number of Vehicles in Household Marital Status of Head of Household Age of Head of Household Age of Oldest Child Age and Presence of Children Occupation of Head of Household Race of Head of Household Housing Tenure Education of Head of Household
Tortilla Chips Product Category
Importance 66.4 65.3 52.2 42.1 36.5 26.2 21.0 20.6 14.7 9.4 8.1 2.0
When comparing the product and category, the number of persons in the household is the highest demographic to consider.
Competitor’s Level of Importance Below is a graph that shows the competition’s level of importance of the demographics. Highlighted are the top demographics to concentrate for each brand.
Based on these results, each brand has household income as a top demographic, same as Tostitos Scoops.
Tostitos Scoops Demographic Variables Based on the level of importance, Tostitos Scoops is able to find out more information about each of the top three demographics of the consumers. The top three are shown in red. Variables and Measures Demographic Variables Race of Head of Household White Black Hispanic Asian Other Number of Persons 1 Person 2 Persons 3 Persons 4 Persons 5+ Persons Household Income Under $10,000 $10,000 - $19,999 $20,000 - $29,999 $30,000 - $39,999 $40,000 - $49,999 $50,000 - $74,999 $75,000 - $99,999 $100,000 - $149,999 $150,000 or More Age of Head of Household Age 18 - 24 Age 25 - 34 Age 35 - 44 Age 45 - 54 Age 55 - 64 Age 65 - 74 Age 75 or More Age and Presence of Children Age < 6 Age 6 - 17 Age < 6 & 6 - 17 No Children Housing Tenure Own Rent
% Index Volume 75.1% 7.2% 11.9% 3.6% 2.1%
106 62 104 96 90
11.8% 33.9% 18.7% 19.3% 16.4%
45 104 111 139 153
4.4% 5.0% 7.0% 8.4% 9.9% 21.7% 16.1% 17.2% 10.3%
54 49 64 77 98 111 135 151 148
4.1% 16.1% 22.4% 26.8% 16.8% 8.8% 5.0%
91 102 120 127 93 75 49
7.5% 29.2% 10.8% 52.4%
87 146 144 82
72.8% 27.2%
110 81
The heavy consumers are married families with kids, have five or more number of people in the household, and have a higher level of income between $100,000-149,000.
Variables and Measures Demographic Variables Occupation of Head of Household Exec/Admin/Management Prof & Specialty Sales Technicians Administrative Support All Service Crafts & Precision Transportation & Material Moving Farm/Forest/Fishing No Civilian Employment Marital Status of Head of Household Single Married Divorced, Separated & Widowed Household Composition Married Family with kids Married Family without kids Female Head Only with kids Male Head Only with kids Multi-Person Household without kids 1 Person Household Number of Vehicles in Household No Vehicles 1 Vehicle 2 Vehicles 3 or More Vehicles
% Volume
Index
11.9% 14.8% 7.2% 6.4% 9.6% 14.6% 4.5% 0.4% 30.7%
135 112 114 92 112 124 113 112 77
12.3% 66.5% 21.2%
63 131 71
31.1% 33.8% 9.0% 2.2% 11.9% 12.1%
144 116 119 95 89 46
4.4% 22.5% 45.9% 27.3%
50 67 121 137
Grande For Grande, the key demographics are at least 4 people in a household, have an income of at least $75,000, the head of the household is between 35 and 44.
On The Border For On The Border, the key demographics are households that have at least 3 people, have an income of at least $75,000, and average customers that are the head of the household are between the ages of 18 to 64.
Baked! Tostitos Scoops For Baked! Tostitos Scoops, the key demographics are other races than the ones listed in the graph, the household income is at least $50,000, and are between the ages of 25 and 44.
Synders Of Hanover For Synders of Hanover, the key demographics include at least 3 people in the household and at least $50,000 income.
After looking at all the key demographics of each of the top competitors, the primary target would be families that have a householder at least the age of 25, have a household income of at least $50,000, and have children. Each of these brands in the category have similar consumer demographics and Tostitos has an opportunity to gain market share by following their competition or being ahead.
Targeting All Families The primary target will be families. After viewing the key demographics for Tostitos Scoops and its competition, their heavy consumers include children, a larger number of people in a household, and greater income. Even though Struggling Urban Cores do not have a great demand, there is still potential to reach those consumers.
47.1% Total Volume 36.2% HH 130 average Index
Targeting By Lifestyle When looking at Grande, they have a higher index and customers at Affluent Suburban Spreads and Comfortable Country. If Tostitos targets these areas, than they can gain market share to increase consumption. However, by targeting these areas, Tostitos will lose their core customers since the majority lie in the family categories.
43.8% Total Volume 35% HH 125 average index
Channel Summary Tostitos Scoops
Channel Summary Grocery Mass Merchandise Club All Other Drug
Total Volume % Volume per 100 HHs 63% 323.36 24% 123.12 6% 30.34 5% 24.19 2% 10.51
Grocery stores are the top channel of where Tostitos and Grande sell their products. This is a great advantage that Tostitos Scoops has over Grande since more customers are able to reach the product.
Grande
Geographic Areas Tostitos Scoops
Grande
Census Division East North Central
16.7%
108
East South Central
6.0%
96
Middle Atlantic
15.1%
115
Mountain
5.9%
84
New England
5.9%
122
Pacific
10.3%
69
South Atlantic
24.0%
120
West North Central
7.3%
104
West South Central
8.8%
77
For Tostitos Scoops, the top geographic area that use Tostitos Scoops is South Atlantic which is higher than Grande. For Grande, the top geographic area that use Grande is Middle Atlantic and New England which has an advantage over Tostitos Scoops, but shows that Tostitos Scoops should target this area to gain market share..
Targeting Families By Zip Code and Store Locations The majority of the top geographic locations are located in Illinois that have a high index for Tostitos Scoops.
Based on the graph above, Dollar Tree and General are the top stores that consumers will buy Tostitos Scoop. They are also found in Target, Walmart, and Kmart. In the midwest region, I would target the suburbs and make sure grocery stores around the main zip codes have Tostitos Scoops available.
*Data only available in the midwest region
Best Co-related Product The best related product to go along with tortilla chips are dips. Tostitos canned dip is the best choice because the canned dip is a complementary product of chips and this allows the brand to increase sales with another one of their products. Even though Tostitos does not index as high as Chi-Chis Snackers or Juanitas, the total measure and target measure are a lot higher.
All Families Total Consumption - Total Volume per 100 Total Measure Target Target Index HHs Dip - Canned Measure Chi-Chis Snackers (Snacks : Dip-Can) Oz. 8.94 14.83 166 16.62 26.49 159 ** Juanitas (Snacks : Dip-Can) Oz. *** Frito-Lay (Snacks : Dip-Can) Oz. 223.96 313.31 140 Lays (Snacks : Dip-Can) Oz. 119.84 167.00 139 Private Label (Snacks : Dip-Can) Oz. 79.06 104.89 133 On The Border (Snacks : Dip-Can) Oz. *** 8.79 11.72 133 TOTAL DIP - CANNED (SNACKS) OZ. 911.60 1205.91 132 Mission (Snacks : Dip-Can) Oz. * 23.15 30.60 132 Wise (Snacks : Dip-Can) Oz. *** 3.65 4.83 132 Ortega (Snacks : Dip-Can) Oz. *** 5.36 7.04 131 Yucatan (Snacks : Dip-Can) Oz. *** 3.56 4.64 130 Tostitos (Snacks : Dip-Can) Oz. 207.60 263.28 127 Pace (Snacks : Dip-Can) Oz. ** 9.31 11.72 126 Litehouse (Snacks : Dip-Can) Oz. ** 8.99 11.09 123 Old El Paso (Snacks : Dip-Can) Oz. *** 5.02 6.10 122 Fritos (Snacks : Dip-Can) Oz. ** 15.78 19.03 121 Utz (Snacks : Dip-Can) Oz. *** 6.97 8.24 118 Cheez Whiz (Snacks : Dip-Can) Oz. 74.83 81.51 109 Robert Rothschild Farm (Snacks : Dip-Can) 3.70 2.28 62 Oz. *** Product
Under Best Products, I chose to look at each categoryâ&#x20AC;&#x2122;s target total measure and the demand index of all families to see how many households are consuming and are more likely to buy the brand. The target Measure of Tostitos Scoops is 313.31 which means the consumers in all families are consuming 313.31 units per 100 households. The demand index is not as high as others, but Tostitos canned dip is being consumed to more households.
Other Categories Two other categories that would be best for cross promotions for families would be soft drinks and frozen pizza. Since Tostitos Scoops is a snack, they would not want to co-brand another type of snack for a chance to decrease their market share. Instead, the best way to show the target market what foods to complement with Tostitos Scoops is to incorporate a beverage and a quick meal with a snack. Based on the target measure and target index, some brands that will offer great potential would be Coca-Cola, Pepsi, Mountain Dew, Dr. Pepper, Digiorno, Totinos, and Tombstone.
Advertising in Magazines Based on the high targeted Index levels, I would advertise in teen magazines that have a heavy target index and entertainment magazines that have a higher target measure because I want to reach what the target is buying and demanding the most. Again, the target is families that have multiple number of person in the household with different ages, therefore there can be benefits to advertising in different magazines.
Top 10 Magazines to consider: 1. Tiger Beat 2. J14 3. Seventeen 4. Cosmopolitan 5. All You 6. Time Distribution 7. In Touch 8. Us Weekly 9. Ok! 10. Pop Star
Local Market Behavior in Media When looking at the Census Division, the majority of Tostitos Scoopsâ&#x20AC;&#x2122; consumers are held in the South Atlantic region, which is where I would want to look into what type of media families are interested in that region.
For newspapers and magazines, most of the local targets read newspapers that are within the state. For example, Florida, will have readers that read the Miami New Times. Also, it is reported that average consumers will read any daily newspaper. For Television, the channels that index above 100 are cable television networks such as ABC family, Disney Channel, Nickelodeon, MTV, and other family oriented channels. Other channels include Discovery Channel, ESPN, and the travel channel which can be from the holders. Shows that were listed included the Grammyâ&#x20AC;&#x2122;s and other award shows. For Radio, the higher indexes are from listeners that listen from 6am-noon and 3pm-7pm. In Florida, KHYI FM indexes higher at 111 in the morning and at129 in the afternoon. For the Internet, main search engines such as Google and Yahoo! are visited within the past month. More specific websites include Amazon, FOXNews, and Weather.com. When the consumers buy online, the higher indexes show that they mostly buy toys, clothing, music and other entertainment.
Local Market Behavior in Recreational Activities
The main activities that are done by Tostitos Scoopsâ&#x20AC;&#x2122; customers have an interest in Sports whether it is recreational activities such as bowling, but most prefer to watch National Football League or National Baseball League on television or buy tickets to a game. When traveling, the consumers to not index at a high level when traveling out of the country. Most of the grocery stores that South Atlantic shop at are at Walmart and are most likely to use in store coupons from magazines or the internet.
Best Media Platforms to Reach Target Market Overall, the best media platform to reach my target audience is through television. Most of the programs that are watched reach a wide audience and are family oriented. If children are watching a television program, most likely the householders will also watch the program. With television, advertising can be heard and seen to show that Tostitos Scoops great for a family get together. I would place advertisements on the main network or cable channels during the evening where families are most likely to watch television together.
Print advertising is another great opportunity to reach my target audience. By spreading the advertisements to teens, entertainment, and gossip magazines, it reaches a specific demographic. Also, with magazines, there are more readers per copy compared to a newspaper. With newspapers, I would include coupons and sales promotions for Radio would be a third choice to reach out to my target audience. Time slots to consider would be in the morning where the householders are on their way to and from work in the early 6-7am and in the afternoon at 4-5pm when more people are likely to be driving.