Kashi Case Study by Jodeci Richards

A CASE STUDY.

trifocus media group: Jodeci Richards Samantha Sargent Rachel Sather

TABLE OF CONTENTS Assignment Target Audience Media Mix Timing/Scheduling Media Budget Scope Situation Analysis Creative Strategy Media Objectives Media Strategies Flowchart Appendix

2 3 3 3 4 4 6 8 8 9 12 13

THE ASSIGNMENT Kashi’s chief marketing officer has named us as the advertising manager for the frozen pizza line, and she has set a very aggressive goal to grow frozen pizza sales by 15 percent to $40 million by end of next year. While 15 percent is a very aggressive number, the nutrition and health position is unique and makes the brand very appealing to those who buy into the Kashi culture. The CEO recognizes that growing Kashi’s share of the pizza business by 15% is a tall order, and that category expansion alone won’t do the job. She concedes that at least half of real growth must come out of the hide of Kashi’s main competitors. All creative executions will be consistent with Kashi’s current brand culture, thus emphasizing the seven whole grains, natural cheeses and other ingredients, and the Kashi healthy lifestyle. The CEO also emphasized that while growing the brand through advertising, you must also defend the franchise by concentrating ad dollars into a focused media mix. The idea is to try and dominate the media channels we advertise in, even if it’s only one or two media.

TARGET AUDIENCE We narrowed down our market to: • Women • 25-54 • Employed • HH income of $50,000-$100,00 • Includes all marital statuses • Parents • Living in the top 10 DMAs • In all types of home situations • Leading active /fitness lifestyles We’ve based these criteria on the following quantitative data points: • 53.2% of women bought frozen pizza in the last six months. (Index number: 104) • 58.5% of those surveyed ages 2534 bought frozen pizza in the last six months. (Index number: 114) • 58% of those surveyed ages 3544 bought frozen pizza in the last six months. (Index number: 113) • 53% of those surveyed ages 3544 bought frozen pizza in the last six months. (Index number: 103) • 64.6% of the given population was employed, and 54.4% of those employed bought frozen pizza in the last six months. • In total, 32.3% of the given popula-

tion makes $50,000-$100,00. • 40.9% of the given population was parents, while 61.1% (with an index number of 120) of those parents bought frozen pizza in the last six months.

MEDIA MIX

• Internet--We’re continuing our use of Internet because it’s an effective platform that reaches large amounts of people at one time. Since 94% of 18-29-year-olds, 89% of 30-49-yearolds, and 77% of 50-64-year-olds are on the Internet[5] we cannot avoid using it as one of our media.

Our media mix is a combination of spot cable, magazine, and Internet presence. Currently, our only platform is Internet, which we felt ignored a good segment of the population. According to statistics from 2011, 77.86% of Americans are have access to Internet[6], while 96.7% of American households have a television[7]. Our reasons for our media choices are as follows: • Spot Cable--As we said, more Americans have televisions than have access to the Internet. While our competitors are using television as one of their media, we’re the only ones who will be using spot cable, which may give us a lead on the competition. Additionally, “sixty-one percent of the U.S. population age 12+ subscribe to basic cable television service at home.”[8] • Magazine--We feel that magazines are a highly focused medium that can reach our specific target market. We also think that, because our competitors are heavily involved in this medium that we can’t afford to not advertise in magazines.

Kashi Internet banner.

TIMING/SCHEDULING As of current, Kashi is only advertising their pizza during August, September, and October. While August and September are the peak months for frozen pizza advertising, Kashi’s main competitors--Digiorno and Tombstone--advertise in February, March, April, May, and August. Therefore, Digiorno and Tombstone get more frequency and reach of their message. To compete, Kashi

must expand their media schedule to reflect a flighting schedule with more frequency in July, August, September, and October, and less frequency from November to June. Based on the healthy active lifestyles of Kashi’s target market, the campaign will launch mid-June with various Internet and in-store sales promotions, allowing the consumer to sample the product. July will begin with heavy spot cable advertisements to increase the awareness from the Internet and in-store promotions. July, August, September, and October will consist of more heavy women’s magazine, Internet, and spot cable ads. Because the Internet has been Kashi Pizza’s only domain, we need to continue using it, but increase the frequency and reach. The goal is to dominate the media channels Kashi currently uses while expanding.

MEDIA BUDGET Kashi Pizza will have a budget of $14.9 million. This budget will be allocated using the objective task method. $2,282,800 will be allotted to our national advertisements from July to October. Since our objective will be to continue to dominate the vehicles Kashi Pizza is currently advertising which is, Internet, more money would need to go toward making that goal a reality. Our competitors are spending 2,042,900 dollars on Internet alone! In our proposed budget we will spend $9,176,200 on Internet advertisements throughout the entire campaign.

With this drastic increase Kashi Pizza will dominate the Internet. We have allotted $4,147,848 to spot cable advertising. Our target market is women ages 25-54 who are employed and making between 50,000100,000+, who are either married or single parents, who are concerned about living a healthy and active lifestyle and in the top 10 designated marketing areas, therefore we want to target them specifically through our spot cable advertising.

SCOPE The Kashi brand has positioned their products as all natural, and they have trademarked the concept “Kashi Seven Whole Grains & Sesame®” which include whole oats, hard red winter wheat, rye, barley, long grain brown rice, buckwheat, and triticale.[11] Due to the brand’s all natural positioning and the fact that the Kashi brand is distributed nationally in retail stores including natural food stores and conventional grocery outlets, Kashi will commit to national advertising with heavy-up buys in

key spot markets. The United States has undergone a health craze in the last few years. Under this health craze, people in more urban/ metropolitan areas are purchasing more organic and natural foods. Organic food sales have grown by 17 to 20% a year for eight years straight compared to category sales of conventional food have grown only 2 to 3% per year. Also, organic products are available in over 20,000 natural food stores and 75% of conventional grocery stores. Food products labeled as “natural” are available in 99% of conventional grocery stores. Natural and organic food sales account for an estimated 10% of total food sales in the U.S.A today. This goes to show that organic is trending in this age of time and can be found nationally. Annual category sales for the frozen pizza category are around $2.7 billion and national sales for Kashi last year reached $36 million. This provides us reason to focus on national advertising since national sales are high, but to still focus on the regions that hold the greatest promise. With this information provided from the case

TOTAL BUDGET: $14.9 million NATIONAL (JULY-OCTOBER): $2,282,800 INTERNET: $9,176,200 SPOT CABLE: $4,147,848

DESIGNATED MARKETING AREAS & REGIONS. Top 10 DMA’s by Household, Estimated Category sales and Estimated Kashi Sales

study, we will implement heavy- up buys in the top ten DMA’s based off of households, estimated category sales for frozen pizza, and estimated Kashi sales. We have chosen these DMA’s from MRI’s information because they provide the most households to reach and they also hold the most potential sales for the category of frozen pizza and of the Kashi brand. We also found that these top ten DMA’s have the highest populations of our target market. Spreadsheet analysis indicates that the 5 regions that these DMA’s fall into Top 10 DMA’s by women ages’ 25- 54. scored above an 82 index for frozen pizza totals and above 74 for holding a fitness lifestyle. This information will help us to reach our target Audience in the most concentrated way. Our national advertising will be implemented through the Internet and women’s magazines, and our spot buys will be implemented through spot cable television.

The 5 regions of the top 10 DMAs by Frozen Pizza, Fitness Lifestyle, and Kashi Cereal Primary Indices.

SWOT ANALYSIS

FOUR Ps

STRENGTHS

PRODUCT:

Nutritional facts are better than competition brands Recognizable brand Sold in a variety of stores Appeals to the healthy lifestyle

WEAKNESSES Lack of variety of different crusts Higher price Lack of awareness concerning Kashi Pizza

OPPORTUNITIES Increasing public interest in natural and organic foods. Increasing public interest in health and fitness.

THREATS On bottom shelves at grocery stores The state of the Economy Domination of competing brands

The Kashi Company is a division of the Kellogg’s company, a $10.9 billion food company. The Kashi brand was established in October 1994. Total sales for all Kashi brands are estimated at $560 million. They have positioned their products as all natural, and they have trademarked the concept “Kashi Seven Whole Grains & Sesame®.” Those seven grains are whole oats, hard red winter wheat, rye, barley, long grain brown rice, buckwheat, and triticale - a hardy hybrid of wheat and rye. The Kashi brand is best known for its line of natural cereals, natural snacks, crackers, and frozen waffles, and has introduced their all-natural frozen pizzas in 2007. The tag line for the pizza is seen on their website and states, “pizza lovers rejoice: Roasted veggies, unique mushrooms, rich sauces, tasty cheeses, all on our 7 whole grain crust.” There are currently seven flavors including basil pesto, four cheese, barbeque chicken, margarita, Mediterranean, mushroom trio and spinach, and roasted vegetable. Each pizza is 3 serving sizes at 116g and is 250 calorie. Estimated sales are around 36 million.

PLACE:

The Kashi Pizza brand is distributed nationally in retail stores including both natural food stores as well as conventional grocery outlets. They are found in the frozen pizzas section of isles in these stores.

PRICE:

Products may be purchased and price can be seen on www.kashi.com. Their pizza range from 6.99$-7.99$. Prices can also depend on various in store promotions, for example bogo at Publix.

PROMOTION:

Kashi.com describes that the consumer can like their Facebook and will receive coupons and other promotional offerings. They have The Great Organic Giveaway on Facebook, which provides consumers with a chance to win 6 types of their cereals. They also have a Cultivate E- Newsletter that offers coupons. Special events that they have are The Kashi Real Project, which donates to help solve the Real Food Deficit, and the recycle to get rewards with Recyclebank. Points are gained towards a rewards program that allows consumers to receive coupons and other products and services.

GEOGRAPHY STRATEGY

Spending should be focused on Magazine, Internet, and Spot Cable Television. This spending should be focused on the top 10 DMAs. Kashi can maximize its advertising voice in both national and spot markets by allocating its budget to dominating these media vehicles. By having such a narrow focus, the message will resonate in the targets mind and has a greater opportunity of reaching sales. There is minimal waste coverage.

SHARE OF VOICE

CREATIVE STRATEGY COMMUNICATION OBJECTIVE

a. Increase awareness of Kashi Brand Pizza amongst women ages 25-54 who are employed and making between 50,000100,000+, who are either married or single parents, who are concerned about living a healthy and active lifestyle by the end of 2014 b. Increase trial purchase behavior of Kashi Brand Pizza amongst women ages 25-54 who are employed and making between 50,000-100,000+, who are either married or single parents, who are concerned about living a healthy and active lifestyle by the end of 2014

parents, who are concerned about living a healthy and active lifestyle reach their goal of being happy with their bodies inside and out so they can say they have got it going on!

PROMISE

a. The benefit women will receive from eating Kashi Pizza is a delicious, healthy, all natural meal that increases fills up their bellies and brightens their smiles

TONE

a. The tone of voice of our advertising is friendly, admirable, supportive, laudable and inspirational.

TAG LINE

a. Mom’s Got it Going On!

CREATIVE STRATEGY

a. Brand Position: Kashi has positioned its products as all natural, and they have trademarked the concept “Kashi Seven Whole Grains & Sesame®” for many of their products. The seven grains include whole oats, hard red winter wheat, rye, barley, long grain brown rice, buckwheat, and triticale - a hardy hybrid of wheat and rye.” b. We want to position Kashi Pizza as an alternative food choice that will help our target audience of women ages 25-54 who are employed and making between 50,000100,000+, who are either married or single

MEDIA OBJECTIVES TARGET AUDIENCE & MEDIA MIX

According to 2007 MRI Doublebase numbers, 73.3% of all adults surveyed were women and 53.2% (~27,064) of those women used frozen pizza in the last six months. Also, as of current, Kashi Fresh Pizza spends all of its money on Internet as its sole medium. This strategy isn’t completely unjustified, as 89% of adults 30-49[5]

use the Internet. However, we believe that by implementing a narrower target market, we can find a more accurate and appropriate use for our budget. Therefore, the target audience goal for this campaign is to increase Kashi frozen pizza sales by 15% among 25-54 year-old employed women primarily with children who lead active lifestyles. This campaign will saturate the newly segmented audience through: • • • •

Internet Magazine Spot cable television Guerilla event sales promotions

REACH & FREQUENCY

Achieve 79.5% reach within the first month of the campaign launching (315 GRPs) with an average 3.3 frequency (See Ostrow Model in Appendix). Reach will range from 31-79.5% throughout the whole campaign. Frequency will hit 4.0 during months that advertising is heavy, and bottom at 1.3 during off months. The non-traditional reach goal (Guerilla marketing) will be to gain 44% participation of women 25-49 to visit the Kashi Food Truck. Hard counts will be taken each day at each location.

GEOGRAPHY

The top ten DMA’s are targeted for our ‘Moms got it going on’ campaign for our use of women’s magazines and spot cable television. National advertising will be used

on the Internet. We will implement these DMAs for the locations of our food truck to travel around.

MEDIA BUDGET

Kashi has decided to designate a budget of $14.9 million for the new Kashi Pizza Mom’s got it going on campaign. This objective was based off of our strategy.

TIMING & SCHEDULING

During the campaign the advertising will be heavier in the months of July, August, September, and October since those are the prime advertising months for frozen pizza. The months of November, December, March and June will have less heavy advertising, while no advertisements will be shown during the months of January, February, April, and May. Kashi still wants to be relevant in the minds of the consumer therefore advertising throughout most of the year will be effective.

SALES PROMOTIONS

Our goal is to increase Kashi sales by 15% among active 25-54-year-old women primarily with children. We’ll achieve this goal through our Kashi Pizza truck guerilla event, email coupons, and coupons received via QR codes placed in our magazine advertisements.

MEDIA STRATEGIES TARGET AUDIENCE & MEDIA MIX We don’t seek to stray completely from Kashi Pizza’s current marketing strategies. However, we will expand these strategies to include more media and vehicles. We’ll continue Kashi’s Internet presence, but will expand to include: • An updated product Facebook page where we’ll o Announce any new pizza products o Post videos of the guerilla promotional events o Offer sales promotions • A Kashi Pinterest[1][2][3] account that will pin recipes and family dinner ideas, of which will include Kashi Pizza • Youtube[4] videos showcasing our guerilla promotional events, our commercials, and recipe videos • Email[4] sales promotions, e.g. coupons We’ll also launch a flighting eightmonth-long spot cable advertising campaign beginning mid-June 2013 on the following cable networks: • CMT • FitTV • MTV

• Lifetime • LMN • Food Network

• Style • VH1 Classic • OWN

• Oxygen • Bravo • TLC

The television advertisements will be centered on the central “Moms got it Going On” theme. We’ll be filming our guerilla marketing campaign—a Kashi Pizza food truck (see Nontraditional Media & Sales Promotion Strategies) delivering a tasty snack or dinner idea to playgrounds and after-school pickups—and using it as the primary basis for the advertisements. This campaign will be much like the “As Much Protein as an Egg” campaign that featured a man handing out samples of Kashi cereal from a giant egg in the park. We’ll create an eye-catching vehicle that people will fill comfortable and curious enough to approach. We’ll use footage of parents’ and kids reactions to Kashi Pizza, highlighting it as a healthy option for snacks and dinners. The commercial will end with a call to action for parents: “Buying Kashi Pizza makes you a mom who’s got it going on.” Lastly, we’ll include a magazine campaign that will potentially reach all of our target market. The ads will include a QR code that leads them to a coupon for Kashi Pizza. The print advertisements will be circulated during the same eight-month television campaign in the following vehicles: • Allure • American Baby • Baby Talk

• Better Homes & Gardens • Bridal Guide • Brides • Cooking Light • Cosmopolitan • Elle • Entertainment Weekly • Essence • Family Circle • Family Fun • Fit Pregnancy • Fitness • Glamour • Good Housekeeping • Health • House & Garden • In Style • In Touch Weekly • Ladies Home Journal • Lucky • Marie Claire • Martha Stewart Living • Modern Bride • Oprah Magazine • Parenting • Parents Magazine • People en Espanol • People • Redbook • Self • Shape • Traditional Home • Vanity Fair • Weight Watchers • Women’s Day • Women’s World • Working Mother

REACH & FREQUENCY

Traditional media of Women’s magazines and spot cable television will begin with 230 GRPs. Media weight will go towards Babies, Bridal, Health, Parenthood, Travel, Sports, Women’s Fashion, and Outdoo Recreation magazines. It will also contribute to CMT, FitTV, MTV, Style, Vh1 Classic, OWN, LMN, Food Network, Oxygen, Bravo, and TLC. Non-traditional media implemented on the Internet will have 85 GRPs and media weight will go towards Women’s lifestyle, special-interest sites, motherhood blogs, and social media sites of YouTube, Pinterest, and Facebook as well as emailing coupons.

GEOGRAPHY

MRI and CMR data combined with Kashi’s marketing database gave us insight for a spreadsheet evaluation of the top 10 DMAs. Market selections are predicted on households, households of our target audience of women ages 25-49, estimated category sales, and estimated Kashi sales. In rank order, the top 10 metros selected from the 213 DMAs provided are: New york, NY Las Angeles, CA Chicago, IL Philadelphia, PA San Francisco, CA

MEDIA BUDGET

Dallas, TX Boston, MA Washington, DC Atlanta, GA Houston, TX

We will use the objective task method

of budgeting to allot the 14.9 million dollars we have to our “Mom’s got it going on!” Kashi Pizza campaign. A total of 2,282,800 dollars will be allotted to our national vehicles of magazines and internet for the months of July, August, September, and October in an effort to continue to dominate the internet and broaden our media mix to magazines since our main competitors use magazines. A total of 3,736,800 dollars will be allotted to our spot vehicle of cable for the months of July, August, September, and October in an effort to continue to broaden our media mix to catch up to what our competitors are doing. Our national vehicles of magazines and internet will have a budget of 1,353,240 dollars for the months of November, December, March, and June in an effort to continue to stay in the minds of our target audience. Our spot vehicle of cable will have a budget of 411,048 dollars for the months of November, December, March, and June.

TIMING & SCHEDULING

Based on the healthy active lifestyles of Kashi’s target market the campaign will launch mid-June with various Internet(6 GRPS), spot cable (22 GRPS), magazine (6 GRPS) and in-store sales promotions allowing the consumer to sample the product. July will begin with heavy spot cable advertisements(200 GRPS) to increase the awareness from the internet and in-store promotions. July-October will continue the heavy spot cable advertisements (200

GRPS) and magazine ads (30 GRPS). The heaviest vehicle will be internet (85 GRPS). We are utilizing magazines since Kashi’s competitors are using magazines to advertise quite a bit. We chose to utilize spot cable because although our competitors are using net tv, spot tv, and cable there is an opening in spot cable which is a great avenue for Kashi to come in and dominate. We will continue the Internet advertisements and promotions since that is where all of Kashi’s ads are currently and the goal is to try to dominate the media channels Kashi currently advertises in while expanding.

ing QR codes in the magazine ads. Readers can scan the code and receive a Kashi Pizza coupon sent directly to their phones. They’ll be able to either choose between receiving a text promotional code or receiving a coupon via email.

SALES PROMOTIONS GUERILLA CAMPAIGN

We’ll bring a Kashi Pizza truck to schools, parks, and playgrounds in our 10 DMA’s. Three Kashi representatives will be on site: • Someone to cook the pizza • Another to bring passerby to the truck so they can try a slice of Kashi Pizza • And a third to hand the slices out We’ll be featuring 3 of the 7 Kashi Pizza choices, one of which will be the Four Cheese option for children. After people receive their slices, they’ll also receive coupons—redeemable at any grocery store— for Kashi Pizza.

MAGAZINE

Another promotional ploy will be featur-

FLOWCHART

THE APPENDIX 1. Duggan, Maeve, and Joanna Brenner. “The Demographics of Social Media Users — 2012.” Pew Internet. Pew Research Center, 14 Feb. 2013. Web. Apr. 2013. <http://www.pewinternet.org/~/media//Files/Reports/2013/PIP_SocialMediaUsers.pdf>. 2. Moth, David. “Stats: Who Uses Pinterest and Why Is It Important for Marketers?” Econsultancy. E-consultancy.com Limited, 21 Feb. 2013. Web. Apr. 2013. <http://econsultancy.com/us/ blog/62189-stats-who-uses-pinterest-and-why-is-it-important-formarketers>. 3. Rainie, Lee, Joanna Brenner, and Kristen Purcell. “Photos and Videos as Social Currency Online.” Pew Internet. Pew Research Center, 13 Sept. 2012. Web. 21 Apr. 2013. <http://pewinternet.org/ Reports/2012/Online-Pictures/Main-Findings.aspx>.

<http://www.arbitron.com/downloads/cabletvstudy.pdf>. 9. Morrison, Maureen. “New Data Shed Light on Women’s Internet Usage.” Advertising Age. Ad Age, 03 Aug. 2010. Web. 24 Apr. 2013. <http://adage.com/article/adagestat/data-research-women-sinternet-usage/145224/>. 10. Brenner, Joanna. “Pew Internet: Social Networking (full Detail).” Pew Internet: Pew Internet and American Life Project. Pew Research Center, 14 Feb. 2013. Web. 24 Apr. 2013. <http://pewinternet.org/Commentary/2012/March/ Pew-Internet-Social-Networking-full-detail.aspx>. 11. “Organic.” Kashi. Kashi Company, 2013. Web. 25 Apr. 2013. <http://www.kashi.com/>.

4. “What Internet Users Do Online.” Pew Internet. Pew Research Center, Dec. 2012. Web. 21 Apr. 2013. <http://pewinternet.org/ Trend-Data-(Adults)/Online-Activites-Total.aspx>. 5. “Who’s Online: Internet User Demographics.” Pew Internet. Pew Research Center, n.d. Web. Apr. 2013. <http://pewinternet.org/ Static-Pages/Trend-Data-(Adults)/Whos-Online.aspx>. 6. “Percentage of Individuals Using the Internet.” Chart. ITU.int. International Telecommunication Union, 2011. Web. Apr. 2013. <http://www.itu.int/en/ITU-D/Statistics/Pages/stat/default.aspx>. 7. Stelter, Brian. “Ownership of TV Sets Falls in U.S.” The New York Times 3 May 2011: n. pag. The New York Times. The New York Times Company, 3 May 2011. Web. Apr. 2013. <http://www. nytimes.com/2011/05/03/business/media/03television.html?_r=0>. 8. Edwards, Carol, and Diane Williams. The Arbitron Cable Television Study. Rep. no. 06-CAB-321. Arbitron, n.d. Web. Apr. 2013.