Marketing Strategies and Programs – The “Big” Idea
Tostitos customers want reasons to celebrate and have fun in economically lean times. Loyal customers appreciate Tostitos because they are social and about connection. As the economy is changing, Tostitos are evolving to strengthen their fun and uplifting image. In addition, Tostitos are also the life of a football party and backyard barbeque. The majority of these customers purchase Tostitos between 5 and 10 times a year. There is a spike in sales in the first two months of the year, then around Memorial Day to Labor Day. Tostitos are a favorite among adults and families for their connection to celebrating life’s special occasions. From birthday parties to graduation parties, football parties to family movie night, Tostitos are the preferred choice. Millennial men and women are a trillion dollar industry and powerful consumers right now. Tostitos big idea is advertise to Millennial men and women during our financial slowdown periods; March and April 2014 and October, November, December 2014. Tostitos will advertise to its core family household consumers during the financially profitable time periods; January and February 2014 and May, June, and July 2014. Tostitos plans on reaching the Millennial audience, individuals born between 1980-2000 in a variety of ways. Today’s Millennials are smart, it takes more than just using digital media strategies to build your brand. Tostitos will launch a campaign which will inspired by our target audiences way of thinking, feeling and ultimately becoming inspired. Tostitos will advertise to its core consumer through Tostitos Fiesta Bowl, healthy living blogs, snack chats and or Google Hangouts.
Marketing Strategies and Programs – The Mission Statement Tostitos tortilla chips are made for celebrating life! Whether it’s football season, backyard barbecue time, or getting together with your best friends, Tostitos are the must-have chips. Combined with our salsas’ for the ultimate chip and delivery system. With their perfect shape, texture and wildly original flavors and all natural ingredients, Tostitos chips are a simple reminder the best is surprising simple.
Marketing Strategies and Programs – Financial Objectives
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Revenue objective – To increase sales of Tostitos by 10 % as measured by a profitability increase of 10 % of annual versus 2012’s revenue.
Annual Revenue Growth Percentage Profitability
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2010
2011
2012
$1.75 B
$1.8 B
$1.6 B
3%
2%
6%
$13.2 M
$14.3 M
$14.9 M
Profitability objective – To seek an increase in sales volume at a relatively low profit margin, in an attempt to obtain and establish a strong, long-term share of the market.
Marketing Strategies and Programs – Marketing Objectives 1. Objective – Increase Tostitos market perception as a healthy snack versus their competitors within 12 months. Measurement – What customer wants? What will the customer buy? Use econometric and frequent brand tracking to establish return on investments short term (6-12 months) and long term (more than 12 months). Metrics- Email open rates and click through rates, website visits and page views, content asset downloads, website completion and abandonment rates. 2. Objective – Increase cumulative sales of Millennial families by 15 % during the months of March and April 2014 and October, November, and December 2014. Measurement – What do Millennials think about Tostitos chips? Does Tostitos online content reach our target? Metric – Status updates through Facebook and Twitter. Page visits and engagement metrics such as time spent, utilizing web tracking analytics software. 3. Objective – Increase sales of core customers by 20 % during the months of January and February 2014 and May, June, and September 2014. Measurement – What does our consumer know about the Fiesta Bowl? Metric – Customer surveys, Google Analytics, pages views, and content asset downloads.
Marketing Strategies and Objectives – Target Market / Audience •
Target # 1 Core Consumers of Tostitos based on consumption.
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Objective - Increase Tostitos perception among our heavy customers as a healthy snack versus our competitors by increasing our volume of sales 10% for the financial year 20142015.
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Target Market - Tostitos are a product consumed by families with lifestyle backgrounds such as affluent suburban spreads, older bustling families, younger bustling families, small-scale families, and start-up families. Age- 35-54 years old Gender – Male and Female Income level - $75,000 - $149,000 + annually Marital Status – 65 % married, 15 % single, and 20 % divorced Family Size – Households with 5 + people Ethnic Background – Caucasian and Hispanic
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The Market Climate - Demographics, the aging population and changing ethnic mix, and bifurcating income are the trends shaping the way people eat. Today, people are snacking more often during the day, and they are looking for snacks that are more satisfying physically and healthier.
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Target Audience - Tostitos has a loyal customer base, which appreciates quality and taste. In addition, Tostitos in conjunction with Frito-Lay are a market-leader in the snack foods category. To establish our target audience, we must look at different psychographic information; Region – Midwest Interests – Volunteer work, enjoy reading the Sunday paper, enjoys domestic travel within the United States to Las Vegas, Southern California, and Boston. Hobbies – Gardening, swimming, reading, exercising, and watching sports. Values – quality food products, strong family dynamic, and use in-store coupons.
Marketing Strategies and Programs – Target Market / Audience
Attitude Behaviors – Spend at least $200 on grocery trips, preferred stores include Target, Wal-Mart. Prefer traditional bookstores such as Barnes and Noble. Enjoys professional sports events. Lifestyle – Visits a fast food establishment at least once every 30 days. Listens to talk radio and during 6 am to 12 pm hours. Watches primetime television from 7 pm to 11 pm. Magazines – Cosmopolitan, Life and Style, Better Homes and Gardens, and Sports Illustrated. Cross Promotional Items – Tostitos Salsas and Diet Pepsi
Value of Product, Price, Promotion, and Position Product – Tostitos customers’ perception of value depends on all aspects of the product, including non-price factors such as quality, healthfulness, and prestige. Price – Healthier chips cost more money to make. We must emphasize the overall message that healthier products cost more than due to extra measures Promotion – Tostitos are available throughout retailers in North America. Tapping into our targets preferred stores allows us to step up our in-store promotional displays and also ensures we have adequate stock available for our consumers. Position – Tostitos use all natural ingredients and are an industry leader in ensuring their products meet the needs of both consumers and FDA requirements. Tostitos is constantly working to reduce their carbon footprint by implementing innovative manufacturing practices.
Marketing Strategies and Programs – Target Market / Audience •
Target # 2 – Millennial Families
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Objective – Increase cumulative sales of Millennial families by 15 % during the months of March and April 2014 and October, November, and December 2014.
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Target Market Age – 25 – 38 years old Gender – Male and Female Income Level – $50,000 - $75,000 + annually Marital Status – Married Family Size – 3 to 6 + Ethnic Background – Caucasian and Hispanic
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The Market Climate – Focusing on Millennial families allows for expanded growth and increased sales, both short-term and long-term. Today, Millennial aged families are the highest growing population of consumers who are financially able to purchase items they want. Millennial families live in Cosmopolitan Centers, Affluent Suburban Spreads, and Comfortable Country.
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Target Audience – Millennial families appreciate value but they also value having the options to purchase what they want. Often, decision makers are men and women within the family, but they are influenced by what their children want. Today’s Millennial families are price conscious but have the income to explore other brands and are influenced by health conscious products. Region – Midwest Interests – Biking, Vacations, Sporting Events, Movie Theatres, Amusement Parks, and Online Shopping. Hobbies – Yoga, Running, and Reading Values – In-store coupons, quality ingredients in their food products, and brand loyalty.
Marketing Strategies and Programs – Target Market / Audience
Attitude Behaviors – Spend at least $150+ on grocery trips, preferred stores include Target, Wal-Mart, and Jewel. Lifestyle – Visit a fast food establishment at least once a month, prefers cable television programing History Channel & ESPN, usually watches television between 7 p.m. and 11 p.m., and listens to talk radio and contemporary radio stations between 6 a.m. and 12 p.m. Magazines – Cosmopolitan, People, and US Weekly Cross Promotional Items – Sabra Humus Dips and Freshetta Pizzas Value of Product, Price, Promotion, and Position Product – Millennial families are looking for a product that is convenient and comes in a variety of tastes and flavors. Price – Millennial families are willing to pay more for a product that is made of quality ingredients. Promotion – Tostitos are available at the retailers which Millennial families shop. Strengthening our in-store displays and offering manufacturer coupons will help bring Millennial families and Tostitos closer together. Position – Millennial families are looking for a product that gives back to the planet. Tostitos promotions displaying their reduced carbon footprint and in-store displays promoting health and an active lifestyle.
Marketing Strategies and Programs – Positioning / Value Positioning ___________________________________________________________________________
Target # 1 – Position Statement For tortilla chip lovers, Tostitos are made with all natural ingredients and zero trans fat to keep you healthy and active. We use only best ingredients to deliver our finely crafted chip-delivery system. That’s because we believe simple ingredients are essential to keeping our customers healthy and happy.
Target # 2 – Position Statement Tostitos: When you absolutely, positively need to celebrate all that life has to offer! Our Cantina chips are bold in taste, high on quality, and breathe life into any social occasion!
Target # 3 – Position Statement There is noting more important to us than satisfying our customers’ need for high quality, extremely taste snacks! Tostitos is leading the way into the future! We have modified our production methods, which has dramatically reduced our carbon footprint. We believe innovation is crucial to driving our business and keeping our customers and the planet happy!
Marketing Programs and Strategies – Key Strategies Strategy # 1 Target – Core Tostitos consumer based on consumption.
OBJECTIVE
Increase Tostitos perception among our heavy customers as a healthy snack versus our competitors by increasing our volume of sales 10% for the financial year 2014-2015.
GOALS
1. Raise brand awareness 2. Raise Brand Loyalty 3. Raise Customer Education of Tostitos health vs. competitors’
TACTICS
1. Print advertising January and February 2014 and May through September 2014. Full-page advertisements in Cosmopolitan, Better Homes & Gardens, and Sports Illustrated. 2. Enhance Tostitos web presence through social media sites Facebook, Twitter, and YouTube. 3. Display signs at point-of-purchase promoting Tostitos commitment to health and well being.
METRICS
1. Consumption metrics – How many people consumed Tostitos content measured as page views or downloads and subscribing to content. Google Analytics and social media site insights from Facebook, Twitter, and YouTube. 2. Qualitative metrics – how do Tostitos consumers feel about our product? Evaluate improved perception of Tostitos as a healthy snack product through positive customer satisfaction or market research surveys, social media comments, Facebook Likes, Twitter Tweets, and Online “Buzz”.
Marketing Programs and Strategies – Key Strategies Strategy # 2 Target – Millennial Families OBJECTIVE
Increase cumulative sales of Millennial families by 15 % during the months of March and April 2014 and October, November, and December 2014.
GOALS
1. Gain market share among Millennial families. 2. Increase sales of Tostitos during off peak sales months. 3. Tap further into Millennial families wants and needs via our online social media presence and campaigns.
TACTICS
1. Print advertising during the months of March, April, October, November, and December 2014 in Cosmopolitan, US Weekly, People, and Sports Illustrated. Full-page advertisements with $1.00 off manufacturer coupons. 2. Enhance web presence via Google Hangouts, Facebook, and Tostitos Snack Chats. 3. Run cable television commercials between 7 p.m. and 11 p.m. on History Channel and ESPN during the months of March, April, October, and December 2014.
METRICS
1. Consumption Metrics – How many people used $1.00 off manufacturer coupon? 2. Qualitative Metrics - Did people sign up for our Google Hangouts? Did sales of Tostitos increase during the months of March, April, October, and December 2014?
Marketing Programs and Strategies – Key Strategies Strategy # 3 Target – Core consumers of Tostitos
OBJECTIVE
Increase sales of core customers by 20 % during the months of January and February 2014 and May, June, and September 2014.
GOALS
1. Increase sales during of Tostitos during peak buying times by 20 %. 2. Increase Tostitos brand perception as a eco-friendly consumer product. 3. Strengthen sponsorship between Tostitos and Fiesta Bowl.
TACTICS
1. Advertise Tostitos Fiesta Bowl partnership in Sports Illustrated, People, and Cosmopolitan. Full-page advertisements during January, February, May, June, and September 2014. 2. In-store displays branding partnership between Fiesta Bowl and Tostitos during January, February, May, June, and September 2014 at retailers Target, Wal-Mart, and Jewel. 3. Create a brand persona aimed at our core consumer. The persona, both female and male, will be used throughout Tostitos Snack Chats, Facebook, and Google Hangouts.
METRICS
1. Consumption Metrics – How many people signed up for Tostitos Snack Chats and Google Hangouts? 2. Qualitative Metrics- Did sales increase over the time period? Did people like us on their Facebook page or Tweet about us on Twitter?
Marketing Strategies and Programs – Marketing Mix Implications Tostitos is in the maturity stage of the product lifecycle. Market shares are stable and rapid sales growth has slowed down. It is important to be proactive and come up with ways to extend the product lifecycle. This can be accomplished by; 1. Modifying the market – find new users for the product 2. Modifying the product – change a product feature to attract new users 3. Modifying the marketing mix – change of the marketing mix elements, for example price or the way the product is promoted Currently, Tostitos has a 13% share of sales in food, drug and mass merchant channels. Product / Service Tostitos sells tortilla chips and salsas to customers through retailers. In conjunction with Frito-Lay and PepsiCo, Tostitos focuses on selling a wide variety of tortilla chips to meet customer demands and wants. The rapid changing economical climate has caused prices to increase but Tostitos has found effective ways to offer its’ product to consumers at convenience prices. Tostitos are priced accordingly to other tortilla chips on the market. Through advertising, Tostitos has been able to advocate their reasoning for pricing their product. 1. Quality ingredients cost more 2. Research and development to reduce Tostitos carbon footprint costs money Tostitos has been successful in launching its’ products with bold, distinctive packaging. This helps the product stand out on the retail shelf and also offers consumers convenient ways to reseal Tostitos. At the end of the day, Tostitos is committed to focusing on providing their consumers with a quality product, which is easily accessible and can be incorporated into their daily lifestyle. Price Individual bags of Tostitos range from 9 oz. 13 oz., and 18 oz. sizes. Individual bags of Tostitos range in price from $2.99 to $4.99 a bag. Often, retailers will run promotional sales such as 2 for $5 deals.
Marketing Strategies and Programs – Marketing Mix Implications
Tostitos offers discounts and incentives to retailers who stock their product. This allows for the retailer to offer consumers special offers on Tostitos products. Place/ Customer Service Tostitos serves its customers in North America through indirect retailers. Tostitos uses retailers to sell their products throughout North America. Consumers may not purchase Tostitos directly from the manufacturer, they rely heavily on retail distribution channels. Tostitos relies on the Internet and their website site to give consumers knowledge about their product, information on where to buy Tostitos, and platforms to voice their opinions, concerns, and wants. In addition to providing outlets for customer feedback and service, Tostitos has taken great strides in their technical support capabilities. Relying on state of the IT-Infrastructures, Tostitos ensures their products are on the shelves of their retailers consistently. While Tostitos is an industry leader in product innovation, Tostitos focuses on providing their customer’s with convenience and a wide variety of product flavors and natural ingredients. Promotion Tostitos believes in sustainability by achieving overall customer satisfaction, loyalty, and attribute satisfaction. Tostitos operates in a highly competitive market, to succeed and grow they most focus their promotional efforts on sustainability and the evolution of healthy snacks. Tostitos strategy for communicating with their audience is print advertising, social media presence, and sponsorships with events such as The Fiesta Bowl, television advertising, and creating a brand persona, which is targeted at their market/ audience. •
Sales promotion – manufacturer coupons, special financing opportunities for out retailers, and contests through Tostitos Fiesta Bowl.
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Advertising – Print magazine advertising, in-store displays, radio and television commercials.
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Direct marketing – manufacturer coupons (Val Packs).
Marketing Strategies and Programs – Marketing Mix Implications
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Brand persona – focused on communicating directly with our core consumer and target audience.
Strategy # 1 Implications – 1. Print advertising January and February 2014 and May through September 2014. Full-page advertisements in Cosmopolitan, Better Homes & Gardens, and Sports Illustrated. 2. Enhance Tostitos web presence through social networking and partnerships with local markets NFL teams. 3. Display signs at point-of-purchase promoting Tostitos commitment to health and wellbeing. Product – Tostitos needs to focus on more than just convincing consumers to buy their product. Instead, we need to offer them a product they need and promote innovations and improvements in the products offered. Focusing the print advertising campaign on healthy, all natural ingredients. Enhancing our web presence through healthy snack chats and promoting our quality product on social networking sites. In addition, Tostitos must identify what makes them unique compared to their competitors. This can be achieved by highlighting Tostitos chips and salsas, which consumer reports indicate people prefer brands with matching products. Price – Tostitos will implement product line pricing. Since Tostitos come in a variety of flavors, whole grain, wheat, etc. Product line pricing will price different products within the same product range at difference price points. In our advertising efforts, we must emphasize why certain products cost more than others. Place – Tostitos needs to focus their marketing strategy on their commitment to health. Therefore, creating a marketing strategy that puts Tostitos in the same category as healthy snacks. Tostitos consumers need to have a positive image of their product. We must place targeted advertisements in print advertising and as well as commercial television advertisements.
Marketing Strategies and Programs – Marketing Mix Implications
Promotion – In order to rejuvenate Tostitos perception in the market, a change in the packaging or aesthetic changes should be implemented. Modifying the packaging, repositions the product in the eyes of the consumer. Strategy # 2 Implications – 1. Print advertising during the months of March, April, October, November, and December 2014 in Cosmopolitan, US Weekly, People, and Sports Illustrated. Full-page advertisements with $1.00 off manufacturer coupons. 2. Enhance web presence via Google Hangouts, Facebook, and Tostitos Snack Chats. 3. Run cable television commercials between 7 p.m. and 11 p.m. on History Channel and ESPN during the months of March, April, October, and December 2014. Product – Millennial consumers are attracted to products visually. In order to ensure our marketing strategy is worthwhile, Tostitos must have the right features, look good and work well into their daily lives. Price – In order to tap into the Millennial market, Millennials must purchase Tostitos in large enough quantities to produce a healthy profit. Positioning Tostitos as a healthy, fun snack chip will help increase Millennials perception of their value. Place- Tostitos utilizers various distributors in North America. We need to ensure stores are stocked with merchandise according to the months of certain advertising campaigns. In addition, each store should have the appropriate in-store marketing displays. Promotion – Tostitos plans on communicating with their customers on a personal level. Through enhancements via online marketing, Tostitos will be able to tap into their consumer’s emotional side.
Marketing Strategies and Programs – Marketing Mix Implications
Strategy # 3 Implications 1. Advertise Tostitos Fiesta Bowl partnership in Sports Illustrated, People, and Cosmopolitan. Full-page advertisements during January, February, May, June, and September 2014. 2. In-store displays branding partnership between Fiesta Bowl and Tostitos during January, February, May, June, and September 2014 at retailers Target, Wal-Mart, and Jewel. 3. Create a brand persona aimed at our core consumer. The persona, both female and male, will be integrated throughout Tostitos Snack Chats, Facebook, and Google Hangouts. Product – Tostitos is committed to their consumers and the planet. Ensuring Tostitos products feature eco-friendly packaging and healthy ingredients is key. Price – Consumers will value Tostitos and pay for them if they believe in the product. Focusing on sustainability and brand elasticity will ensure Tostitos are priced accordingly in the market. Place – Tostitos must ensure their products are on store shelves heavily during the advertising months listed above. In addition, Tostitos will partner retailers Target and Jewel to ensure in-store displays are at the front of stores during advertising months. Promotion – Creating a brand persona, both female and male, will help Tostitos tap into their customers needs and wants. A brand persona will also help Tostitos learn more about their consumers needs and wants. This is also a great way to provide customer service and feedback, while approaching consumers with a friendly persona.
Marketing Programs and Strategies – Marketing Programs and Tactics
Strategy # 1 Marketing Program Integrated advertising campaign Full-page print advertising in Cosmopolitan, Better Homes & Gardens, and Sports Illustrated In the following months: -
January 2014
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February 2014
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May 2014
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June 2014
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July 2014
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August 2014
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September 2014
Integrated online advertising campaign in conjunction with football and social media Online banner advertising in conjunction with Chicago Bears and Detroit Lions via Facebook, Twitter and YouTube during the months of January, February, and December 2014.
Display signs at point-of-purchase promoting Tostitos commitment to health and well being. During the months of January, February, May, June, July, August, and September display promotional signs featuring benefits and new packaging at retailers Target, Wal-Mart, and Jewel.
Marketing Strategies and Programs – Marketing Programs and Tactics
Strategy # 2 Integrated print advertising campaign Full-page advertisements with $1 off manufacturer coupons in Cosmopolitan, US Weekly, People, and Sports Illustrated during the months March, April, October, and December 2014. Electronic Marketing January through December 2014, enable Tostitos presence via Google Hangouts, Twitter, Facebook, and email blasts. January through December 2014, enable Tostitos Snack Chats via Tostitos.com. Television Advertising Run cable television commercials between 7 p.m. and 11 p.m. on History Channel and ESPN during the months of March, April, October, and December 2014.
Marketing Strategies and Programs – Marketing Programs and Tactics Strategy # 3 Integrated print advertising campaign Promote Tostitos Fiesta Bowl partnership in Sports Illustrated, People, and Cosmopolitan. Run fullpage ads during the months January, February, May, June, July, August, and September 2014. Promotional In-Store Advertising In-store displays branding partnership between Tostitos and Fiesta Bowl during January, February, September, November, and December 2014 at retailers Jewel, Target, and Wal-Mart. Tostitos Brand Persona Create a brand persona aimed at our core consumer. The persona, both female and male, will be used throughout Tostitos Snack Chats, Facebook, and Google Hangouts January through December 2014.
Marketing Strategies and Programs – Marketing Research Enabling market research strategies is an important part of measuring Tostitos marketing efforts. After spending time and money marketing to Tostitos target market segments, we must develop a series of research methods to measure customer engagement. The strategy behind Tostitos marketing campaign incorporates a series of elements, which today’s consumer, both young and old, value. •
Health and Well-being
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Brand elasticity
Managing our marketing efforts begins with internal and external marketing functions. •
Internal decision makers within Tostitos realize that profitable decisions emerge by from not only production or sales estimates, but from the ripple effect of information, which details areas such as personnel, finance, management, and accounting practices.
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External information is the development of alternative marketing strategies, which are evaluated by the consumer in reference to the marketing activity of company/ brand.
Market research is systematic and designed for a variety of reasons. Tostitos will deploy a series of research efforts, which are designed to help in evaluating the advertising/ marketing programs and in making decisions concerning it. 1. Know how many people are visiting Tostitos website and social networking sites. 2. Know what times of the day and days of the week people visit most often. 3. Know how long they stay on which pages of your site. 4. Know which pages they visit first. 5. Know how they found your site. 6. Did consumers use $ 1 off manufacturer coupons? To measure our effectiveness, Tostitos will consult with an outside firm that will measure their web analytics. In addition, through email marketing and sign-ups, Tostitos has compiled a database of users. Utilizing an outside firm, Tostitos will administer a survey, which will measure engagement between consumers and Tostitos.