Special K Snack Cracker Mock Campaign by Mari Hopkins

table of contents 5

The Executive Summary

Situation Analysis

Primary Research Survey Results

Primary Research Survey Cross Tabulations

Focus Group Research Findings

Secondary Research Findings

Consumer Profiles and Recommendations

Works Cited

Appendix

Chris Deitrick, Mari Hopkins, Quinn Ianniciello, Xiaoshan Li, Patrick Lipster, and Jacob Logar are seniors studying advertising in the Edward R. Murrow College of Communication at Washington State University. This test market project was first presented on March 10, 2011 for the Advertising 480 course taught by Professor Daniel Petek.

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1. situation analysis

Relevant Market (SIC) Code Kellogg’s new Special K crackers Standard Industrial Classification (SIC) code is 2052. Crackers are classified as a “manufactured food and kindred product,” which is specified by the first two numbers of the SIC code being 20. The next two numbers, 52, specify that is it is a “cookies

In this section

and crackers” product. The NAICS code is 311821. Crackers

6 The Market

like Kellogg’s are categorized as “Cookie and Cracker

13 Competitive Position

Manufacturing.”

LETS BEGIN

20 The Consumer 20 Distribution

Market Size and Growth Trends

22 Advertising History

The cracker industry is highly fragmented, with the “all

24 Sales Promotion

other” category as the leading majority in both sales and

27 Problems & Opportunities

growth. Kellogg’s Special K crackers are included within the “all other” segment of categories. The key trends in cracker products that have continued to gain momentum over

the past couple years are private label as well as consumer

THE MARKET

health awareness and perception products.

Definition

Cracker sales have increased from 2003 to 2008 by 12% to

There is a wide variety of cracker products offered in the marketplace. The different categories include saltine crackers, matzoh crackers, graham crackers, crackers with fillings, “all other” crackers, and breadsticks. This report highlights the United States market for the Special K

$3.9 billion. Marketers must maintain the healthy image of crackers to keep the positive growth of the market. According to Mintel, the United States crackers market declined 4% in inflation-adjusted prices from 2003-2008. (Mintel, Crackers, Market Forecast 2009)

product line extension that includes Special K Savory Herb, Special K Multi-Grain, and Special Italian Tomato & Herb. This will extend their current line including cereal, bars, cookies, pop-tarts, and waffles.

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There was a recovery in the cracker category from the 2004 dip in dollar sales due to the low-carb diet fad. The lowcarb diets such as Atkins diet are unfavorable of any food

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with high amounts of carbohydrates. One way cracker companies tried to combat these diets was to introduce

In millions of dollars

$3,264 $3,142

“whole grain” and low calorie crackers. This trend caught

According to Mintel, the “all other” crackers $3,036

on and started to recover the slight dip in sales. The main reason for the sales gains are a result from price increases.

The Market For Wheat & Cheese Type Crackers category is forecasted to reach 3.2 billion in

$2,968 $2,930

$2,927

2013, indicating a potential increase of a little

The cracker industry is involved with issues pertaining to

over 3 million, compared to estimated sales of

rising commodity prices, convenience, natural and organic,

“all other” crackers segment in 2008.

food safety, and cross-category competition. 2008

2009

2010

2011

2012

2013

Market Forecast Mintel estimated that the cracker category sales in FDMx

According to Mintel, the cracker category is better insulated in a poor economy since it has encouraged people to return to home dining.

$4,137

would reach just over $3.9 billion in 2008, indicating an increase of more than 4% since 2007 and an increase of

$4,041 $3,927

$3,900

$3,916

$3,959

Mintel forecasted total cracker sales to reach

12% since 2003. However, this reflects a 4% decline when

$4.1 billion by 2013, indicating a potential

accounting for inflation from 2003-2008. Mintel also

increase in sales of nearly 2 million when

forecasted a minor decline in cracker sales in 2009 based on

compared to estimates in 2008. However, when

the economic downturn which has led people to purchase cheaper alternatives such as private-label brands. According

2008

2009

2010

2011

2012

2013

economy since it has encouraged people to return to home dining. However, sales of crackers as a whole are under

$32,742

pressure from competing private label brands that offer

$31,920

lower prices.

$31,148

The rate of cracker consumption in terms of inflation-

snack foods which is forecasted to reach 32.742

$29,901 $29,450

billion by 2013. If forecasted correctly, the

adjusted dollars, pounds, or packages bought has declined

market for healthy snacks will see an increase

between 2003-2008 as rising food prices have led to

of nearly $3.3 billion in sales, or roughly 10%,

increased product prices. For instance, the average price paid per pound for the cracker category rose 13.5% from

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The Market For All Healthy Snack Foods Crackers are within the category of healthy

$30,485

adjusting prices for inflation this market may see a slight decline.

to Mintel, the cracker category is better insulated in a poor

[ REALITY CHECK ]

The Market For All Types Of Crackers

compared to sales in 2008. 2008

2009

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2012

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2005-2008 but the total cracker category sales only rose

with 40% (Mintel, Crackers, Market Forecast 2009). These

12%. This indicates that sales were driven primarily by

crackers are sold in a variety of different sizes and quantities

rising prices, while the amount of pounds sold actually

including; 8-ounce packages (Plus 4) and 90 calorie packs.

decreased. (Mintel, Crackers, Market Forecast 2009).

Some small level brands in this market have been targeting

health focused consumers in order to raise sales revenue.

These declines, however, haven’t been distributed evenly

The large scale brand’s market shares have focused on pro-

across all segments in the cracker category. Some of the

health positioning as well.

most successful new products in the snack industry are those with new tastes and textures. These new products

Distribution

have helped keep crackers in the mind of consumers

There is a wide variety of people that consume crackers

who are willing to try new products. In contrast, smaller

across the country. According to SMRB 2009, the two

segments such as saltines and graham crackers have

main regions that have the most cracker consumption are

suffered from a lack of innovation and marketing. As a

the geographic Region South (15.9%) and the geographic

result they’ve seen declines in both consumption and dollar

Region Southeast (23.1%). The other top geographic

sales (Mintel, Crackers, Market Forecast 2009).

Regions are East Central (13.6%), Southwest (11.5%), and

Mid-Atlantic (10.9%) (SMRB, 2009). The total number of

The “all other” crackers segment, which accounts for nearly

people that consumed crackers in their household across

three quarters of total category sales, has actually seen

the country is 80.4% of the total population (Mintel,

increases in consumption. According to Mintel, the “all

Crackers, Market Forecast 2009).

other” crackers segment has seen stronger sales growth than any other segment. Sales increased about 23% since 2003

Significant Trends

to nearly $3 billion, and segment growth just under 6% in

Health

2008.

Many companies have been focusing there efforts on the health benefits of crackers products. Several brands

Market Make-up

of cracker products have been gaining power by stating

There are several cracker segments including; “all other”,

the health benefits of their products on the packaging.

saltine, crackers with fillings, graham crackers, breadsticks,

Consumers have been more motivated to purchase the

and matzoh crackers. Out of these group segments, the “all

healthy options of products available in the recent years.

other” category of crackers has the largest market share

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Product Innovations

The growth of this industry has been driven by a steady stream of new product activity. New innovations including low-fat and low-salt content, natural and organic, whole grain, gluten free and overall convenience have led to the success of the “all other” crackers segment.

COMPETITIVE POSITION

For Special K Crackers to enter the heavily saturated snack foods market, a unique brand positioning strategy must be developed. The current cracker market is dominated by industry leaders such as Nabisco, Pepperidge Farm, and existing Kellogg’s brands.

Economy Mintel states that the declining economy has contributed to the rising unemployment rates throughout the United States. With this growing unemployment reaching 8.5% in March 2009, household budgets have become tighter and more efficient (Mintel, Healthy Snacking, Market Size and Forecast 2009).

The Special K Brand Special K has a legacy of providing products that are low fat and encourage weight-loss. Many consumers who eat Special K Products do so as part of the “Special K Challenge” where the product lines are used to lose six pounds in two weeks. The variety of breakfast foods, snack bars, beverages, and now crackers create a wholesome and

Sales The promotion for products to emphasize a “healthy” alternative to everyday snacking has continued to be a dominating strategy from many cracker brands. Dollar sales growth of 9% from 2006-2008 indicated that even though consumers may be more inclined to purchase higher-priced and healthier snacks, single-serve and portion controlled packaging may be cannibalizing existing sales as consumers eat less per serving. n

holistic diet (when combined with fresh fruits, vegetables, on-your-own dinners, and exercise) that help promote a healthy lifestyle. By capitalizing on the Special K brand name and consumer history with these new product lines, Kellogg’s will see continued success in this highly competitive industry.

Reaching The Consumer Special K is a household name for ready-to-eat fortified cereals, weight-loss products, and snack bars. The current lines of products are available in all types of supermarkets, club wholesalers, and grocery outlets nationwide. The cracker test market product is sold in attractive eight-ounce packages made of paperboard surrounding the bagged,

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11.4% All Other Crackers Shares <2% Each

shelf-stable product. Special K snack products, as well as competing cracker products, are found in the snack foods aisle, commonly located near the chips and cookies section as well.

14.2% Cheez-It

The test market product Special K Crackers are available in

4.2% Private Label

three savory varieties: Multi-Grain, Savory Herb, and Italian Tomato and Herb.

4.8% Townhouse 13.2%

Not Just The Major Players Competition continues to be driven in the cracker category

Wheat Thins

5.1% Club

from a growing number of private label and organic niche products distributed by small-scale producers and 8.8% Triscuits

supermarket chains.

13.1% Ritz

Annie’s Inc. Annie’s Homegrown Cheddar Bunnies, Bunny Grahams

12.3% Other

and other natural and organic kids’ crackers marketed

12.7% Goldfish

towards concerned parents and families.

Mary’s Gone Crackers — Selected brand sales and market share of “all other” crackers in the U.S., 2007 and 2008. — Mintel, based on Information Resources, Inc. InfoScan® Reviews™

Wheat-free, gluten-free organic baked goods and crackers geared towards consumers with gluten allergies.

Market Share As the cracker market currently stands, Kellogg’s products suffer from their overall small share in the

Blue Diamond Growers

industry when compared to other competitors. As shown in the chart above, the market leaders are

Blue Diamond Nut Thins, nut-based cracker products, and whole nuts and milk products designed for consumers looking at alternatives to wheat or dairy.

popular brands like Cheez-It (Sunshine) and Wheat Thins (Nabsico). Many niche, healthy, organic, and weight-loss branded style crackers fall in the above 11.4% of not listed brands, each with a market share of less than 2% each. Overall, Kellogg’s and Special K must drive increased effort into this test market product over the next year to adapt a better competitive position in the market.

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Stonewall Kitchen

Next Up in the Cracker Market

Specialty crackers including aged cheddar beer, Asiago

Along with the small-scale competition offered by private label and organic brands, several new

cheese, sea salt, blue cheese sesame seed, and many other

products may have the ability to draw sales away from the current stakeholders. Other brands like

flavors.

Proctor & Gamble, and PepsiCo/Frito Lay are jumping into the industry with “Stix” and cracker varieties of already successful chip products like Doritos and Fritos.

Wild Harvest

Below ↓

Leading supermarket chain Supervalu has extended its line

Proctor & Gamble

of organic brand products to include wheat thin crackers.

• Pringles “Stix” and cracker varieties

O Organics

PepsiCo/Frito Lay

Safeway’s successful house brand of organic products now

• Stacy’s Pita and Bagel Chips

includes several flavors of wheat crackers that are kosher

• Cracker varieties and snack mixes of Lays, Doritos, Fritos, Sun Chips, etc.

certified and are ideal for snacking.

• Rold-Gold Pretzel crackers n

Shelf schematics from a Rosauers store in the test market show the current distribution of cracker varieties across a 24’ sixshelf display.

Shelf Schematics: Rosauers, Spokane, WA. (February 11, 2011

Milton’s (8.3oz, 2/$5.00ea)

Milton’s (6.7oz, 2/$5.00)

Wheat Thins (8.5oz, $3.49)

Milton’s (8oz, 2/$5.00)

Wheat Thins (8.5oz, $3.49)

Milton’s (9oz, 2/$5.00)

Wheat Thins (8.5oz, $3.49)

Milton’s (8oz, 2/$5.00)

Western Family (8oz, $2.79)

Stoned Wheat Thins (10oz, $4.19)

Kraft Easy Cheese

Better Cheddars (12oz, $2.49)

Chicken in a Biskit (12oz, $3.49)

Wheat Thins (8.5oz, $3.49)

Wheat Thins (16oz, $4.79)

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Wheat Thins (8.5oz, $3.49)

12’

Wheatsworth (15oz, $4.49)

Wheat Thins (8oz, $3.79)

Wheat Thins Stix (8oz, $3.49)

Cheese Nips (11.75oz, $1.79)

Toasteds (8.5oz, $4.50)

Flip Sides (11.7oz, $2.49)

Wheatables (8.5oz, $3.99)

Kellogg’s Product

Triscuit (8.5oz, $3.49)

Ritz (8.5oz, $3.69)

Wheat Thins Toasted Chips (8.1oz, 2/$6.00)

Triscuit (8.5oz, $3.49)

Ritz (12.25oz, $3.59)

Ritz Toasted Chips (8.1oz, 2/$6.00)

Wheat Thins Toasted Chips (8.1oz, 2/$6.00)

Flip Sides (11.7oz, $2.49)

Club (13oz, $2.49)

Cheez-It (13.7oz, 2/$7.00)

Ritz Toasted Chips (8.1oz, 2/$6.00)

Flip Sides (11.7oz, $2.49)

Club (13oz, $2.49)

Cheez-It (13.7oz, 2/$7.00)

Ritz (12oz, $3.49)

Flip Sides (11.7oz, $2.49)

Ritz (1lb, $3.55)

Triscuit (8.5oz, $3.49)

Chicken in a Biskit (12oz, $3.49)

SocVeg. iables Thins (8.5oz, (8.5oz, $3.49) $3.49)

12’

Triscuit (16oz, $4.79)

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Ritz (12oz, $3.49)

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Town House

Toppers (11.7oz, $2.49)

AllBran (8.5oz, $3.49)

Kellogg’s Product

Cheez-It (13.7oz, $3.19)

Club (13oz, $2.49)

Cheez-It (13.7oz, 2/$7.00)

Goldfish (6.6oz, $2.99)

Club (13oz, $2.49)

Cheez-It (13.7oz, 2/$7.00)

Goldfish (6.6oz, $2.99)

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brand/product comparison chart

Serving Size (Crackers)

Calories

Total Fat

Cholesterol

Sodium

Total Carbohydrate

Protein

Vitamins/Minerals (DV)

120

0 mg

250 mg

23 g

Iron: 4%

120

0 mg

240 mg

22 g

Iron: 4%

120

0 mg

270 mg

22 g

Iron: 4%

140

0 mg

230 mg

22 g

Iron: 4%, Calcium: 2%

$0.26

120

4.5 g

0 mg

180 mg

19 g

Iron: 4%

$1.50

$0.09

1.5 g

0 mg

190 mg

11 g

Iron: 4%

16 oz

$3.99

$0.25

4.5 g

0 mg

135 mg

10 g

Iron: 2%, Calcium: 2%

8 oz

$3.00

$0.38

3.5 g

0 mg

140 mg

Iron: 4%, Calcium: 2%

Red Oval Farms (“Stoned Wheat Thins”)

10.6 oz

$3.29

$0.31

1.5 g

0 mg

210 mg

10 g

Iron: 4%

Wheatsworth (“Stone Ground”)

11.5 oz

$3.29

$0.29

3.5 g

0 mg

180 mg

10 g

Iron: 4%

Baked Naturals (“Wheat Crisps”)

7 oz

$3.49

$0.50

140

0 mg

240 mg

21 g

Iron: 6%, Calcium: 2%

Distincitive Crackers (“Harvest Wheat”)

7 oz

$3.49

$0.50

3.5 g

0 mg

125 mg

11 g

Iron: 4%

6.6 oz

$2.69

$0.41

140

< 5 mg

250 mg

20 g

Iron: 4%, Calcium 2%

Kashi (“Heart to Heart: Original”)

8 oz

$3.00

$0.38

120

3.5 g

0 mg

85 mg

22 g

Iron: 10%, A: 25%, C: 25%, B6: 25%, B12: 25%, E: 25%. Folic Acid: 25%

Kashi (“TLC Crackers: Original 7 Grain”)

9 oz

$3.00

$0.33

120

3.5 g

0 mg

160 mg

21 g

Iron: 4%

Kashi (“Party Crackers: Stoneground 7 Grain”)

6 oz

$3.99

$0.67

130

0 mg

140 mg

17 g

Iron: 4%, Calcium: 2%

All Bran Crackers (“Multi-Grain”)

10 oz

$2.75

$0.28

130

0 mg

270 mg

19 g

Iron: 4%

Keebler Club Crackers (“Original”)

16 oz

$3.50

$0.22

0 mg

125 mg

<1g

None

Keebler Wheatables (“Original Golden Wheat”)

10 oz

$2.50

$0.25

140

0 mg

200 mg

20 g

Iron: 4%

Carr’s (“Whole Wheat Crackers”)

7 oz

$3.50

$0.50

3.5 g

0 mg

100 mg

11 g

None

Package Size

Retail Price

Price Per Ounce

Special K Crackers (“Multigrain”)

8 oz

$3.79

$0.47

Special K Crackers (“Savory Herb”)

8 oz

$3.79

$0.47

Special K Crackers (“Italian Tomato & Herb”)

8 oz

$3.79

$0.47

Wheat Thins (“Original”)

10 oz

$2.50

$0.25

Triscuit (“Original”)

9.5 oz

$2.50

Premium Saltine (“Original”)

16 oz

Ritz (“Original”) Flavor Originals (“Sociables”)

Total Flavor Varieties

Test Market Product

Nabisco (Kraft Foods)

Pepperidge Farm (Campbell’s Soup Company)

Goldfish Crackers (“Original”)

Kellogg’s (Internal Competition)

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THE CONSUMER

The majority of the population is between the ages of 4564. The 45-64 segment that is married with no children living in the household, accounts for 18.7%. Following

The Spokane Designated Market Area According to The 2008 Lifestyle Market Analyst the total adult population of the Spokane, Washington designated market area is 817,728. The majority of the population is married, accounting for 56.1% of the total. The rest of the population consists of 22.5% single females and 21.4% single males (43.9% of the population is single). Based on this data we see that gender is relatively equal (women accounting for 1.1% more).

area is in the professional/technical field (24.4%) followed by those who are retired (17.5%) and blue collar workers (13.5%). The top education level attained is 1-3 years of college (34.7%). The six races/ethnicity’s reported in the Spokane, WA designated market area are White (86.4%), Hispanic (6.7%), Other (2.2%), American Indian (2.1%), Asian (1.7)%, and African American (1.0%).

and out of these households the median age is 49.8 years old. This median age makes sense considering most households fall within the age range of 45-54 years old (21.0%). The median household income is $40,738, with the majority of the population’s income making under $20,000 (22.5%). 68.9% of the total adult population owns their own homes, while 31.1% rent.

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population have children still living in their home. 10.3% report being married and having children under the age of 13.

For the most part there are two incomes for the married segment (32.3%), in comparison to 23.8% of married

with dual incomes, 20.0% have no children living in the household, 6.4% have children between the ages of 13-18, and 5.8% have children under 13 years of age.

Trends in Consumer Purchasing According to Mintel, the FDMx sales of all crackers increased 13% in 2005-2008. As a whole, Kraft Foods Inc. saw a 1.8% decline in sale from the end of March 2008 to the end of March 2009.In comparison, the Kellogg Co.

Within the entire population there are 413,684 households,

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no children in the household at 13.2%. 28.1% of the

couples relying on one income. Of the married households

The most popular occupation within this designated market

this segment is the single adults segment ages 45-64 with

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experienced a 5.8% increase in FDMx sales. Pepperidge Farm (Campbell Soup Co.) sales increased 11.8% within that year, and private labels increased 21.2% (Mintel, Healthy Snacking-US-June 2009).

Overall, consumers were seen to move toward healthier diets with data trends indicating more shoppers willing to pay higher prices for healthier snacks (Mintel, Healthy

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Snacking-US-June 2009). Women in particular have a more

on the taste by 81%. On the other hand, 70% of all

positive attitude toward dieting and health, while men

respondents agreed that they look to price as another

are more likely to take dietary action if specific illnesses or

contributing factor when buying a snack. Of the 314

ailments require them to do so (Mintel, Diet Trends-US-May

respondents surveyed, 61% said they would be willing to

2010).

try a new snack product if it had been recommended to them by someone they knew and 58% said they would

Cracker buyers tend to consistently purchase specific

try a new snack if it was a flavor they liked. Only 43% of

brands, maintaining their brand loyalty. Mintel reports

respondents indicated that a low price would be a factor in

two thirds of consumers re-purchase the same brand of

their consideration when buying a new snack. For the most

crackers. In addition, when a familiar brand comes out

part, consumers need to be able to try the product before

with a new product, they will be more likely to purchase.

they would be convinced to buy it.

Four out of five cracker eaters are willing to try new flavors and new types of crackers and about two thirds of Mintel’s

Consumer Profiles

respondents claimed familiarity to be very important. Six out of ten cracker buyers don’t decide the type of

Influenced Mothers

cracker they are buying until they are in the store (Mintel,

Based on secondary and primary research, parents

Crackers-US-February 2009).

(especially mothers) would be the ideal market for Special K Crackers. The overall age of this group ranges from

To support these ideas, qualitative information gathered

34-54. Demographic information from the 2008 Lifestyle

from a focus group shows that many shoppers tend to

Market Analyst shows there are slightly more women in

buy a product they already know and trust. Sampling the

the Spokane designated market area by 1.1%. Although the

product would increase the likelihood of a consumer to

majority of the population is married, 56.1%, 28.1% of the

purchase Special K Crackers. Also, many of the focus group

population have children living in the household, most of

participants agreed that they typically decide to buy snacks

whom are under 13 years of age. As a whole, parents are

(such as the Special K Snack Crackers) while in the store,

likely to eat the types of crackers that their children want

not beforehand.

and are highly influenced by their children while in the grocery store. Adults with children in the household tend

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Based on a survey administered online, the majority of

to look more at nutritional information when buying foods

consumers base their decision of buying a snack product

than adults without children in the household. Adults

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“Kids have considerable influence on the cracker category, not only in brand selection but also in increased cracker consumption by adults in households where kids are present.”

with two or more children in the household are even more

are obese or overweight. Based on this alarming fact, Mintel

likely to look to nutritional information when making

reports that the number of Americans “watching their

healthy decisions than adults with just one child in the

diet” increased since 2003 (28%) to 2009 (52%). The media

household (Mintel, Diet Trends-US-May 2010). Children

has drawn attention to the fact that obesity is a growing

eat approximately 2.48 snacks daily. Due to child obesity,

problem in the U.S. and 85% of individuals surveyed

parents have become more aware of the types of food their

concluded that crackers are a healthy snack (Mintel

children consume (Mintel, Kid’s Snacking-US-June 2010).

Crackers-US-February 2009). Overall, the Spokane market

Consumers in general are more likely to decide to buy

participate in recreational activities such as skiing, camping

snacks (such as crackers) while in the store. Adults with

and hiking (2008 Lifestyle Market Analyst). Additional

children in their household tend to try new types of

emphasis regarding the health benefits of Special K Crackers

crackers and new flavors of crackers more than adults

will help relate to consumers in the Spokane market that

— Mintel, Crackers-US-

without children in the household. Women are far more

lead an active and healthy lifestyle. Although the majority

February 2009, Advertising

likely than men to look for more healthy ways to snack,

of the population in the Spokane designated market

and Promotion.

showing more value toward whole grain and low calorie

area is between the ages of 45-64 (18.7%), according to

crackers. Also, they showed more interest in trying new

statistics and analysis from sources like Mintel, the younger

types and flavors of crackers (Mintel, Crackers-US-February

generation will be a significant consumer segment for

2009). The three flavors offered by Special K show variety

Special K crackers. As a whole, the young trendsetters are an

and the Special K brand itself appeals more to women than

untapped market that could be beneficial to market toward

men.

as Mintel indicates that they are moving toward healthy

“Four of the top six causes of death in the U.S. (as cited by the CDC) are strongly associated with lifestyle and diet: heart disease, cancer, stroke, and diabetes” — Mintel, Functional FoodsUS-August 2009, Market Drivers.

eating. Young Trendsetters

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This particular group of people are getting settled on their

Golden Seniors

own and range between ages 18-34 years old. Although

This is the older generation, ages 55-74 years old. This

a part of this market, people ages 18-24, found it hard to

particular age group is reported to see the largest growth

eat healthy, eating healthy has become more prevalent

between 2010 and 2015 (Mintel, Attitudes Toward Fiber

and the population is becoming more aware and educated

and Digestive Health-US-April 2010). To support this idea,

regarding healthy lifestyles (Mintel, Diet Trends-US-May

The 2008 Lifestyle Market Analyst reported the two largest

2010). In January 2010, The Journal of the American

demographics in the Spokane designated market area were

Medical Association reported that two thirds of Americans

married couples ages 45-64 (18.7%) and singles ages 45-

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Note

64 (13.2%). These people are older, so they are concerned

What Consumers Think

Although Mintel reported

about their diets for health reasons. 80% of individuals

Up to 85% of male and female respondents claimed that

minorities such as African

surveyed ages 55-64 use the nutritional information on

they considered crackers as a healthy snack (Mintel,

Americans and Hispanics

food packages to make healthy eating choices (Mintel, Diet

Crackers-US-February 2009). Mintel reported 79% of

to be more likely than

Trends-US-Mar 2010). The fiber in Special K Crackers can

women looked at nutritional information on the packaged

Caucasian groups to try

provide improved digestion along with certain ailments,

of food to help them make healthy eating choices. Of

healthier snacks (Mintel,

giving the longer, prosperous life they desire. Having a

all the women surveyed, 56% said they had a hard time

Healthy Snacking-US-June

fiber-deprived diet could put you at risk for GI diseases such

sticking to a diet. When males and females were compared,

2009), the population data

as IBS, Crohn’s Disease, Ulcerative Colitis, and Diverticular

females were more likely than males to limit the type of

of the Spokane designated

Disease as well as certain cancers (breast cancer, colon

food they ate as well as amount (32% males, 45% females).

market area in the 2007-

cancer, and colorectal cancer). Also, according to the

On the other hand, 42% of males were likely to eat

2008 Lifestyle Market

International Food Information Council Foundation’s Fiber

whatever they wanted and as much as they wanted, while

Analyst reported that

Fact Sheet diets high in fiber can reduce risks of coronary

only 32% of females said they did (Mintel, Diet Trends-US-

86.4% of the population

disease, cardiovascular disease and type 2 diabetes. Fiber

May 2010). This correlates with the idea that 17 Special K

is White (only 6.7%

can help their diets by making them feel fuller faster,

Crackers are 90 calories, so they can indulge.

Hispanic and 1.0% Black).

therefore encouraging less consumption and ultimately

Minorities would be an

weight-loss. These health conscious seniors will be more

After facilitating an 8 person focus group, we learned the

ideal market to target

likely to care about the health benefits that the Special K

consumer opinions on specific brands (Kraft Original

in a specific designated

Crackers have.

Triscuit, Special K Multi-Grain Cracker, Nabisco Original

market area with a higher

Wheat Thins, and Kashi TLC 7-Grain Crackers). Overall,

rate of integration. These

participants expressed their extreme dislike for the Triscuit

consumers have been

and agreed unanimously that Wheat Thins were the ideal

taken into consideration

cracker. The Special K brand reminded them of cereal,

and would be better to

this made them feel indifferent about the cracker brand

target on a national scale.

extension.

Based on a survey administered online, the majority of respondents believed that Wheat Thins would be the most healthy cracker when compared to Special K Crackers,

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as the top attributes when they selected health snacks, with

When looking at the various characteristics of crackers

“Most consumers know that they should include more whole grain in their diets, but many don’t, either because these products cost more or the taste is different from other, more indulgent varieties”

males at 80% and females at 87%. Other top attributions

with age as the consideration, “flavor” remains as the

— Tops VP of center store

include factors like ‘satisfies appetite’ (male 73%, female

predominant cracker attributes across age groups (18-24,

sales and marketing Cathy

82%), ‘previous experience’ (male 62%, female 62%), ‘low

90%; 25-34, 90%; 35-44, 91%; 45-54, 93%; 55-64, 95%; 65+,

Shifflett. (Progressive Grocer,

price’ (male 54%, female 56%), along with other points.

94%). Yet, as Mintel, Crackers-US - February 2009 indicates,

Grainy Picture)

These results indicate insignificant and dismissible gender

people age 65+ tend to have less interest to try something

differences. However, in terms of health factors like ‘low fat’

different (33%) than those who are age 25-34 (50%), 35-44

(male 49%, female 57%), ‘low calories’ (male 41%, female

(51%), and 55-64 (50%). Moreover, the factor “low price”

55%) and packages that have ‘small portions’ (male 24%,

is more important to people who are ages 18-24 (73%) and

female 34%), females tended to rate these factors much

25-34 (74%), than people who are age 35+. On the other

higher than males. On the other hand, reports based on

hand, people who are ages 65+ attuned to health factors of

age groups indicated that consumers age 55 and older cared

crackers, such as “overall healthfulness”(65+, 67%), “low

more about the level of cholesterol, sugar and fiber content.

fat” (58%), “low in salt”(60%) and “low calorie” (54%).

Triscuit and TLC 7-Grain crackers. This could be because

attitudes and motivations concerning health snacks.

of their brand loyalty or lack of knowledge of the various

Additionally, both genders heavily weighted decisions on

cracker brands.

the two factors ‘overall healthfulness’(male 57%, female 60%) and ‘no trans fat’ (male 57%, female 60%). Female

What Influences Consumers to Buy Healthy Snacks

respondents rated these factors moderately higher than male respondents. Clearly, crackers are purchased first on

When selecting brands, there are key points that influence

taste, then on important health factors. A cracker that

consumer purchasing decisions. According to Mintel’s

accomplishes both these criteria effectively would clearly be

report on “Consumer Attitudes and Motivations Toward

desirable among consumers.

Health Snacks”, both genders rated the factor “taste/flavor”

“Women are more likely to limit what they eat for general health and weight loss, while men do so for specific health concerns. Women have a more holistic view of health, while men have a more reactive one.”

Moreover, products with the trait “organic” tends to attract

at Least,” also gave many similar indications as the ‘health

more than people who are older, for instance, those who

snack’ report. The factor “taste/flavor” received the

are 65+ (16%).

respectively). This is consistent with the previous consumer

May 2010

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younger people who are ages 18-24 (29%) and 25-34 (31%)

highest rating from both male and female (90% and 94%

— Mintel, Diet Trends-US-

The Mintel report, “What Consumers Want…in a Cracker,

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All ages, whether they are male or female, believe that

In general, consumers are trying to integrate more

the first thing crackers should have is a good taste. There

nutritional value to their snacks. Ingredients that people

is then some distinction within other important factors.

used to overlook, such as omega-3, antioxidants, plant

Senior citizens do not desire new products as much as

sterols have become more popular than before. Cracker

the rest of the population. As would be expected, price

companies are also increasing their spending on such

influences purchasing decisions in the younger population.

investments (Mintel, Healthy Snacking-US-June 2009).

More women are interested in health related features than their male counterparts. The cracker industry is clearly diversified enough to offer several possible approaches to reach potential customers whether it be taste, health, or economy (Mintel, Crackers-US - February 2009).

Changes in Consumer Behavior The fact that most people consider crackers as a healthy snack has caused companies to tailor their products to the target audience perception. Gluten-free is one of many

“Most people’s diets fall well short of the recommended minimum three daily servings of whole grain products. The mean daily intake of foods made from whole grains was one serving in USDA’s 1996 Continuing Survey of Food Intake by Individuals. According to the survey, only 7 percent of Americans ate the recommended three or more servings of whole-grain foods a day” — Profiling Food Consumption In America, USDA

factors that consumers take into consideration. Until recently, some companies have been aiming to focus on niche groups of people who suffer from Celiac Disease, as well as those who have high health consciousness. Sales of gluten-free crackers are rising (Mintel, Crackers-US February 2009), although it is small.

Also, organic crackers have become another potential competitor in the cracker category. Roughly about 20% of cracker consumers admit that they consider organic as an important factor when they are making their purchase decisions (Mintel, Mintel, Crackers-US - February 2009).

Primary Research Survey Findings

SURVEY

An online survey was created using the site Qualtrics and administered online using email and social media sides such as Twitter and Facebook. There were 314 respondents in a 6 day period. There were 11 questions total; 5 focusing on consumer shopping behavior and snacking opinions, 1 question on media usage, and 5 demographic questions.

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300

What factors do you take into consideration when buying a snack?

Number of respondents who selected the option

254

16 42

45 95

12 42

9 35

182

snack buying decisions on the taste itself as

100

63 12

Other

How healthy it is

Texture

Taste

Nutritional info

Price

Brand

200

35 110 35 41

192

consumers rely heavily

126

135 126

150

183

When trying a new snack,

98 79

consumers rated the

What reasons help you decide to try a new snack product?

126

below all other factors.

texture of the product

104

166

well as the price. Besides the choice of “other,”

105

150

6 11

220

200

respondents base their

17 15 Number of respondents who selected the scale number

“Gluten-free” on the label

“Organic” on the label

“All natural” on the label

Number of ingredients

High protein

effect on those surveyed

Fiber enriched

Low fat

Low sodium

advertisements had little

Low carb

97 89

friends and family. Seeing

Low calorie

100

on the opinions of their

Rate how important you consider the above when determining a snack food to be “healthy.”

in comparison to the other considerations.

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Attractive packaging

I saw an advertisement

Recommendations from peers/family

It’s a good value; prodcut for price

It’s a healthy option or part of my diet

It’s natural or organic

It comes from a brand I recognize

It’s a flavor I like

Overall, when determining a snack to be “healthy,” the majority of respondents Low price

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250

Overall, the majority of

thought it was important for the products to be low calorie or low fat. Most of those surveyed felt that the product did not have to have “gluten-free” written on the label to be considered “healthy.”

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“Other” responses included:

Percent of respondents who selected the option

Fred Meyer (x10)

Other 14%

Trader Joe’s (x6) Co-Op Stores (4)

IGA 8%

Ralphs (x2)

Safeway 35%

Wheat Thins 36%

Kashi TLC 32%

Albertsons (x2)

Walmart 18% QFC 9%

Special K Crackers 12%

WinCo 12%

Percent of respondents who selected the option

Triscuit 18%

Roseauers (2%) Costco (4%)

Of the following retailers, where do you typically buy your groceries? The majority of respondents chose Safeway as their primary grocer, accounting for 34% of consumers surveyed. Although many individuals said Walmart was another place they would buy groceries, under the “other” respondents listed stores such as Fred Meyer and Trader Joe’s as possible stores to buy snacks from.

If you had to choose, which of the above four boxes of crackers would you pick for a healthy snack? Over one third of respondents indicated Wheat Thins as the healthiest snack when given the options above. Unfortunately, Special K ranked last with 13% of respondents considering it as the healthiest snack.

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Ranked Most Used

Answer

Internet Social Media Sites (like Facebook, Twitter, etc.)

MEAN: 1.80

Bar

Male

25%

Female

74%

Prefer not to disclose

Total

Internet Entertainment or Video Sites (like Hulu, YouTube, E!, etc.)

100%

MEAN: 3.37

Television (shows or movies you watch on your home TV)

Internet News or Informational Sites (like CNN, MSNBC, etc.)

MEAN: 3.44 MEAN: 3.74

79%

Age 25 - 34

Age 34 - 44

Age 45 - 54

Age 55 - 64

Age 64+

Radio Stations listened to in your car or on a stereo (like ZFUN 106.1, etc.)

MEAN: 4.96

Magazines Printed Magazines (like Self, Cosmopolitan, GQ, Men’s Health, etc.)

MEAN: 5.14

Answer

MEAN: 5.54

Ranked Least Used

Overall, respondents are more likely to use social media

86%

Asian American

African American

Pacific Islander

Native American

2% 4%

Total

100%

Answer

High School

GED

medium (other online sites were ranked highly among

consumers as well). Other than the internet, participants

Four Year Degree (In Progress)

consumed by those surveyed. Other Page → The demographic makeup of our primary research

Four Year Degree

25%

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42%

Total

The respondents were predominantly Caucasian.

Education

undergraduates in progress of their 4 year degree. Only 1% of all respondents had not graduated from high

100%

school. Answer

Bar

One

78%

Two

11%

Three

Four

Five

Six or more

Total

survey.

23%

Two Year Degree (In Progress)

media (newspapers and magazines) are least likely to be

females.

those surveyed were

Bar

Some High School

Two Year Degree

spent a lot of time watching television programs. Print

the respondents were

The majority of

Some College

sites such as Facebook and Twitter over any other type of

Almost two thirds of

Race

Bar

Other (Not Listed)

Rank the above types of media by dragging them in order of how often you use them. First being “Most” and seventh being “Least.”

Age

100%

Caucasian

Newspaper Daily or Sunday Printed Newspapers (likeThe Spokesman Review, etc.)

respondents were 18-34

Bar

Age 18 - 24

Total

Overall, most

years old. Answer

Gender

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100%

Children In Home Most respondents did not have any children under the age of 18 living in the household.

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Focus Group Findings

FOCUS GROUP

Participant A is a 21 year old White female currently in progress of finishing her degree as an undergraduate at Washington State University. She usually buys groceries from Walmart. Her main source of income is from student loans and working summer jobs. She is single and is active in clubs within her major and a part of a Greek affiliated chapter. She said she spends

To support the quantitative data acquired from research

the majority of her time watching television over using other mediums. Overall, she spends approximately 35 hours online weekly, 20 hours watching television, and 40 hours per week using social media resources. Her interests include shopping,

sites such as Mintel, we conducted an 8 person (4 males, 4

hanging out with her friends, and socializing on weekends.

females) focus group facilitated by Quinn Ianniciello and

Participant B is a 28 year old White female graduate student at Washington State University. She typically buys snacks and

Mari Hopkins and later transcribed by Mari Hopkins. The focus group took place on Wednesday, February 23, 2010

groceries from the local Safeway. She relies on her parents for money. She is single and involved with club sports on campus. She said she spends the most time on the internet as opposed to other mediums. She spends approximately 30 hours online weekly, 21 per week on television, and 25 hours of her time is spent on social media resources weekly. She is interested in outdoor activities in the warm weather, shopping, and sports.

at 5 p.m. in room 218 of the Communication Addition building on the Washington State University campus. The overall goal of the focus group was to understand consumer opinions on snack crackers as well as what factors drive

Participant C is a 31 year old African American male completing his degree at Washington State University. He shops at Safeway for his snacks and groceries. He is currently unemployed and relies on loans to pay for his current living situation as well as his education. He is currently in a relationship and plays sports on an intramural team. He said his main forms of media consumption are television and the internet. He spends approximately 25 hours a week online, 10 hours watching television weekly, and 10 hours per week using social media. His activities include spending time with his friends, fixing computer parts, and playing sports.

them to buy certain crackers.

Participant D is a 23 year old single African American and Native American mixed male. He is an undergraduate in progress

To begin the focus group they were presented 5 boxes for crackers: Kraft Triscuit (Original), Nabisco Wheat Thins (Original), Kashi 7-Grain TLC crackers, Special K Multi-

of his degree. He typically shops at Walmart for his snacks and groceries. He is an active member of a fraternity on campus. His main forms of media consumption are the internet and television. He spends approximately 25 hours online weekly, 10 hours per week watching television, and 15+ hours on social media resources weekly. His interests include sports, the “nightlife”, music, and traveling. Participant E is a 25 year old single White male. He completed some college and is self-employed. He usually buys his

Grain Crackers, and Special K Savory Herb Crackers.

groceries from Walmart. He said his main source of media consumption is the internet. He spends approximately 14-21 hours per week online, 7-14 hours weekly watching television, and 21+ hours per week on social media. His hobbies include

The group unanimously agreed that they would choose

snowboarding, wakeboarding, BMX, running, and lifting.

Wheat Thins as the ideal cracker and had no knowledge of

Participant F is a 24 year old single Asian American female. She is a college graduate with a degree in Human Development.

Special K crackers. All expressed their extreme dislike for

California. She said her main forms of media consumption are television and the internet. She spends approximately 20 per

Triscuit crackers based on previous experiences. After the

She usually buys her groceries and snacks from Walmart. She is an alumnae of a Greek affiliated chapter on a campus in week online, 10 hours weekly watching television, and 18 hours on social media resources every week. Her interests include sports and hanging out with her friends.

taste test of all the crackers, the participants, in general, Other Page →

were pleasantly surprised with the taste of the Special K

Profiles of all eight focus

Savory Herb crackers. The participants agreed they would

group participants, names

available in the store. Two drawbacks that the participants

details removed for

found about the Special K brand was the “diet” label and

anonymity at participant’s

packaging. Some of the respondents (males especially)

request.

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and snacks from Winco and Walmart. She said her main form of media consumption was the internet. She spends about 1520 hours per week online, 5 hours watching television weekly, and 10 hours per week on social media outlets. Her interests include athletics, family and friends.

be more likely to buy Special K crackers if samples were

and other identifying

Participant G is a single 19 year old White female. She is currently a hostess at a local restaurant. She buys her groceries

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Participant H is a 22 year old single White male. He is currently a senior at Washington State University. He typically buys groceries from Walmart. He relies on students loans as his current source of income. He is a part of the Pre-Law Society and said his main form of media consumption is the internet. He spends approximately 25 hours per week online, 14 hours watching television, and 12 hours weekly on social media outlets. His interests include snowboarding and socializing with friends.

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“I’m suspicious of any diet from a company, because it’s obvious that they just want you to spend more money on their product. I’m very suspicious of any corporate diet, like the Subway diet.”

Healthy

disliked the idea of company enforced diet plans and felt that the programs were only aimed toward women. Also, they were not partial to the packaging, out of all of the boxes the participants, all agreed that they like the design of the Triscuit box most. Although it was the least favorite cracker when it came to taste, the packaging was still the most appealing because it was, to quote a participant, “classy.” They felt that not only did the brand name Special K remind them of cereal, but the packaging did as well.

In the middle of the focus group, we had the participants — Focus Group Participant

fill out a perceptual map based on their opinions of the

H on the Special K diet

taste and healthfulness. All participants agreed that Wheat

Tastes Bad

Tastes Good

Thins tasted good, but were unhealthy. When rating Triscuit crackers the responses varied, most did not like the taste of Triscuit crackers, but felt that they were at least moderately healthy. The majority of the group did not like the taste of the Kashi TLC 7-Grain crackers, but knew it was a healthy snack product. Overall, when rating Special K crackers, they were spread across the perceptual map on taste but considered it consistently to be a healthy choice.

Unhealthy

Yet, as we discussed above, the Special K Savory Herb crackers gained favorable assessments after participants had Other Page →

sampled them.

Focus group results from the perceptual map,

After discussing the various cracker types and testing the

showing opinions on

crackers, we asked the respondents questions on their

health and tatse for four

media use habits. As a whole, all the respondents were

products including Special

heavy users of social media sites such as Facebook and

K Crackers.

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Twitter. They used the Internet for the majority of their

“Basically when I am doing anything but eating, showering, or out of the house, I am using the internet. And I watch TV early in the morning when I’m getting ready and late at night.”

leisure and information gathering endeavors. Only one person listened to the radio, and it was only for brief periods of time. Although print is always an ideal way to advertise, most users looked up articles online from their favorite newspapers. Popular magazines still seemed to resonate with the participants, but only when they had time. The Internet seemed to be a resource for them that replaced all other mediums, whether it was television, magazines, newspapers, or radio. They could access all of those mediums using interactive sites such as Pandora

— Focus Group Participant F

(personalized radio), Hulu (television), Netflix (movies and

on internet usage.

television), CNN.com (and other news sources instead of reading the newspapers), and so on.

Overall, we found that • The Special K brand brand reminds consumers of cereal, not crackers.

• The participants typically decide to buy snacks and crackers while in the store.

could see myself “Ibuying the Special K Savory Herb crackers now that I’ve tried them.

”

• Triscuit has the most appealing packaging, the Special K

— Focus Group Participant A after sampling the product

Snack Cracker box resembles the Special K Cereal.

• Consumers would be more likely to buy Special K Snack Crackers if they could try them before purchasing (instore sampling).

• Traditional media is now being accessed in online forms • All participants are heavy internet users, especially social media. n

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DISTRIBUTION

Three Step Chain

Four Step Chain

Five Step Chain

Six Step Chain

Kellogg’s

Retailer

Wholesaler

Broker

Shipper

Consumer

Retailer

Wholesaler

Broker

Consumer

Retailer

Wholesaler

Consumer

Retailer

Retail channels purchase cracker products from the manufacturer at wholesale, or 60% of the product’s total cost. These products are delivered in cases between 1-2 times every week through a variety of three to six step wholesale or Direct Store Delivery (DSD) vendor distribution channels.

Buying Patterns In order to gain further insight concerning consumer buying behavior, various retail managers from Spokane supermarkets were interviewed and asked which products were being purchased most frequently. The responses remained consistent with Mintel research as retailers stated top competitors such as Nabisco Wheat Thins, Ritz, Triscuit and Sunshine Cheez-It, to name a few, as consistent top movers in the cracker segment. According to Steve Mickelsen, Manager of a Spokane, WA Rosauers, Wheat Thins, for instance, were moving an average of 2 cases (24 boxes) per week over a 23 week period beginning in 9/27/10. Mickelson emphasized that the average case movement of top cracker competitors remains relatively Other Page →

Consumer

consistent at one to two cases per week at their retail

Kellogg’s employs four

location. The holiday season is a notable exception which

types of distribution

causes a temporary increase in average number sales by the

to move products like

case.

Special K Crackers, ranging from three steps to six.

— Emerald Insight. Adapted from Rosenbloom (1999).

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Retail Channels

product has a 13 week time frame to prove consistent

The sale of the cracker segment of snack foods has been

movement, otherwise the manufacturer will remove the

dominated by the supermarket channel which accounts

product from the shelf and replace it with another one.

for nearly 93% of sales. Cracker sales in supermarkets reached nearly $3.7 billion in 2008. Although Supermarkets

Attitudes From Retailers

dominate the sales for the cracker category they have

According to Jim Glenn, Coordinator of Rosauers shelf

seen increased competition from mass merchandisers,

schematics, most chains generate schematics based on

warehouses, drug stores, convenience stores and specialty

product movement and profit gain for the retailer. Rosauers

food stores. (Mintel, Retail Channels, February 2009). The

determines position based on how well the brokers and

wide variety of retail channels offers cracker companies

national brands support their marketing plan. Ultimately,

alternative value propositions that benefit both the cracker

Glenn emphasized that the brokers and brands that comply

companies and the retail channels. Mintel estimated that

with Rosauers’ marketing plans and objectives will receive

sales in these “other” retail channels reached $276 million

the best position on the shelf. Overall, retail channels will

in 2008 indicating an increase of 9% since 2007 and an

create a schematic with products that are moving and

increase of 46% since 2003. The competition, however, is

creating profit for the retailer.

minimal as 93% of sales remain in supermarket channels

Promotional Practices

such as Rosauers, Albertsons, Safeway and Yokes.

The promotions in retail channels remain relatively

Slotting Fees

consistent from one retailer to another. According to Vince

When crackers are placed on the shelves of retail stores

Ianniciello, Manager of an IGA grocery store, the typical

the product manufacturer is required to pay slotting fees

promotions include newspaper and on-pack coupons,

based on the position on the shelf and amount of space

weekly coupon books, end-cap displays, food sampling and

required to display their product. On average, slotting fees

discount pricing.

in the Northwest are $170 per product. Another factor

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that is taken into account by the retailer is how well the

Retail channels may employ a combination of common

manufacturer supports the marketing plans and objectives

promotions with their own unique promotional practices

of the retailer. The better the manufacturer supports the

to provide increased value propositions for product

marketing plan of the retailer, the more likely they are

manufacturers. For instance, Rosauers utilizes a variety

to receive a good position on the shelf. Ultimately, the

of promotional offers that include monthly “power buy”

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ADVERTISING HISTORY

Nabisco Ritz Ritz was the second most spending cracker in 2009 (LNA,

When looking to advertising history for the Special K Snack Crackers, several brands from several different industries come into play as potential competition. Understanding the advertising tactics of multiple industries will help the Special K brand stand on solid ground within the retail market. These various industries poised as competitors include, but are not limited to, crackers, diet programs, nuts and dried fruit, and nutrition/energy bars. All of these categories have potential threats to the Special K brand nestled into them. Outlining the advertising strategies will provide insight into potential market threats.

2009), advertising with the big idea of ‘Fun’. Since the beginning of their campaign in 2007, the big idea was centered around the phrase, “Open for Fun”. The Ritz website furthers this with the opening line ‘The Fun of Ritz.’ There is little emphasis on product features, in contrast to the next brand by the same parent company (Mintel, Crackers-US-February 2009). Rather than focusing on health benefits, Ritz leads with it’s unique taste and texture. In 2009, the brand spent $26,582,200 distributed across magazines along with network, spot, syndication,

Above ↑ Ritz packaging featuring the bold campaign headline.

and cable TV (LNA, 2009).

Nabisco Wheat Thins

Cracker Market Leaders According to the Leading National Advertisers report for 2009, $156,424,300 were spent on advertising the most popular cracker brands. Top advertising spenders within the cracker market include Ritz, Wheat Thins, Cheeze-It, Triscuit, and Goldfish (LNA, 2009). Three of these top five brands are owned by parent company Nabisco, a subsidiary of Kraft. The advertising within these brands mostly focus not on health but on taste, texture and eating experience. The advertising of crackers target everyone from children to adults and tend to be gender neutral (Mintel, Crackers-USFebruary 2009).

Wheat Thins is one of the top crackers to put an emphasis on health as part of their main advertising message. Both the name and the advertisements for Wheat Thins put

Below ↓

the emphasis on, you guessed it, wheat. Commercials for

Wheat Thins commercials

the product center around texture and taste. Ad messages

feature “viral” interventions.

encourage indulgence for adults whom do not want to consume empty calories but still want an enjoyable eating experience with a feeling of very natural energy. Their current campaign references social networking in order to approach real people for testimonials of the Wheat Thins brand (Mintel, Crackers-US-February 2009). Spending and media for this brand is significantly less than other major players with a 2009 spending of only $8,451,900 in only the TV medium (LNA, 2009).

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Above ↑ A Cheez-it commercial

Kellogg’s (Sunshine) Cheez-It

Weight-Loss Programs

Cheez-It is the top individual cracker brand in ad dollar

As the Special K brand blends snacking into an already

expenditure. Spending $34,500,300 in 2009, Cheez-It had

established diet plan experience, even more competitors

spending tactics that paralleled Ritz, but larger in scale

begin to arise. Organized diet plans such as Nutrisystem,

(LNA, 2009). The focus of the advertising for this brand

Weight Watchers and Jenny Craig have historically aimed

of the Kellogg’s family has been on a lot of real cheese

their business and advertising at predominantly women

flavor in every bite. Ads follow a common idea that can

looking to shed pounds with little inconvenience. Weight-

be most easily described as ‘extreme.’ While much of the

loss companies have decreased ad spending as a result

advertising spent on Cheez-it is marketed toward kids, it

of the recession, but are expected to return to normal

remains a prominent cracker for all ages (Mintel, Crackers-

spending and growth as the economy recovers (Mintel, Diet

US-February 2009). Mediums used are the same as the Ritz

Trends-US-May 2010).

Nutrisystem ads often

brand (LNA, 2009).

featuring the product.

Above ↑ feature “before and afters.”

Nutrisystem Pepperidge Farm Goldfish

Nutrisystem is not afraid to target a larger demographic

The product of Goldfish is an advertising strategy in

with it’s advertising. Celebrities have been enlisted to target

itself. A campaign started in 2005 features that personify

specifically mom’s and their men. This target audience

the different Goldfish flavors in a targeted approach

is older than other weight loss programs and also crosses

Below ↓

toward kids. A company press release describes the effort

gender more than the others. The company assumes the

A kids-oriented Goldfish

as “playful spirit, optimism, and genuine nature of the

tag-line of, “Smart, healthy weight loss with no guess

commerical.

Goldfish brand.” The campaign has taken place in a

work.” This language is meant to connect with an audience

fictional child’s bedroom since its inception. Mintel reports

that has been around the block a few times before (Mintel,

that the company did research and determined that

Diet Trends-US-May 2010). $251,896,600 Magazines

children associate this location with freedom and safety

Newspaper (local and national), all types of TV (LNA, 2009).

(Mintel, Crackers-US-February 2009). Ad dollars spent in 2009 on this Pepperidge Farm brand total $5,810,200 and

Weight Watchers

included magazines along with all types of TV (LNA, 2009).

The Weight Watchers brand is almost a year into a campaign that targets ‘regular people’ although they use every-girl turned celebrity Jennifer Hudson in part of their efforts. Previously, Weight Watchers’ TV and print included

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Above ↑ Weight Watchers ads featuring Jennifer Hudson.

an adorable orange monster that was meant to represent

Nuts and Dried Fruit

hunger. Will-power provided by Weight Watchers overcame

A few companies within the nuts and dried fruit industries

the tantalizing little ball of fluff but not the national

are large enough to carry out significant advertising

recession. Poor financial performance by the company

campaigns. The industries addresses health consciousness

compared to competitors resulted in the hiring of Hudson.

mostly in the adult male population. The lack of mention

Hudson is gaining presence under the Weigh Watchers

of weight loss is a natural attraction for men interested

name by being featured on the website and by doing

in living healthier. Recent years have seen increases in

blog posts for the company. An iPhone application along

the advertising budget for Kraft Food’s Planters brand.

with Facebook presence are all being used to target young

Expansion of healthy product line, along with new ad

women and minorities more so than other companies.

campaigns ride heavily on the iconic Mr. Peanut and

Ad spending for the Weight watchers brand in 2009 was

Above ↑

an attitude towards entertaining guests, with a bit more

New Planters ads feature a

a respectable second but still far behind Nutrisystem’s

sophistication than the Ritz approach. Traditional media

speaking “Mr. Peanut.”

spending (Mintel, Diet Trends-US-May 2010). $40,808,200

has been evident while the Planters brand has translated

was spent on magazines, newspaper, outdoor, and all TV

well to an online presence (Mintel, Nuts and Dried Fruit-

and radio (LNA, 2009).

US-January 2011). To get a better understanding of how competitive these industries are, contrast the $7,359,500 in

Jenny Craig

ad dollars spent by Planters compared to the cracker brands

Below ↓

Stars, especially within the Jenny Craig brand, are being

(LNA, 2009). n

Jenny Craig ads often

used to target older Americans (age 35+). The company

feature popular celebrities.

is also using male celebrities in an attempt to gain a male consumer base by ‘dispelling the notion that diets are for women...’(Mintel, Diet Trends-US-May 2010). $32,789,400 in advertising was spent by the Jenny Craig brand in the form of magazines, all types of television, and spot radio (LNA, 2009).

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leading snack brand advertising dollars spent in 2009

SALES PROMOTION

When examining competitor’s sales promotion tactics Brand /Product

Total Ad Dollars ($000)

Media

it is evident that there have been massive increases with

Kellogg’s Special K Crackers

9889.5

Network TV, Spot TV, Syndication, Cable TV, National Spot Radio

online promotions including discounts, virtual games,

Wheat Thins (Originals)

8451.9

Network TV, Spot TV, Syndication, Cable TV

sweepstakes, and applications for the iPhone. In order to

Triscuit (Originals)

12291.6

Magazines, Network TV, Spot TV, Syndication, Cable TV

Wheatables (Original 7 grain)

N/A

Kashi TLC Crackers

2575.1

All-Bran Various Food Products

N/A

Wheat Thins Flatbread: Crackers

3480.4

Wheat Thins Artisan Cheese Crackers: Crackers

5108

N/A

crackers it is important to take what the competition is

Magazines N/A

doing and surpass them.

Magazines Network TV, Spot TV, Syndication, Cable TV

Wheat Crisps: Crackers

1629.7

Magazines

Town House Toppers: Crackers

6303.3

Network TV, Spot TV, Syndication, Cable TV

Town House Flip Sides: Crackers

4496

Network TV, Spot TV, Syndication, Cable TV

Ritz Crackerfuls: Crackers

Nabisco Wheat Thins Nabisco’s web site provides information about how they ensure the same great taste with 11 grams of whole grain

6453.6

Magazines

Ritz Bits Sandwiches: Crackers

1246.8

Network TV, Spot TV, Cable TV

Ritz: Crackers

26582.2

Magazines, Network TV, Spot TV, Syndication, Cable TV

Pretzel Thins: Crackers

4231.1

Magazines

Nabisco: Various Crackers

624.6

Magazines

Lance: Crackers

4141.8

Newspaper, Cable TV

Kraft Macaroni & Cheese: Crackers

2688.5

Network TV, Spot TV, Syndication, Cable TV

Goldfish Graham Snacks: Crackers

2956.3

Magazines

Goldfish: Crackers

5810.2

Magazines, Network TV, Spot TV, Cable TV

Flavor Blasted Goldfish: Crackers

1515.8

Magazines, Cable TV

Club: Crackers

7963

without using high fructose corn syrup. Wheat Thins are promoted with an opportunity to enter codes from a Wheat Thins box for a chance to win a prize instantly. There are three types of social media sites that are specifically for Wheat Thins crackers. Facebook allows people to ‘Like’ their page so consumers can share their experiences and

Magazines

thoughts about the crackers. Twitter gives consumers the

Cheez-It Crackers: Crackers

34500.3

Magazines, Network TV, Spot TV, Syndication, Cable TV

Cheez-It: Regular & Low Fat Crackers

1957.4

Magazines

Baked Naturals Cheese Crisps: Crackers

1527.2

Magazines

Planters (Peanuts, Mixed Nuts)

7359.5

Outdoor, Network TV, Spot TV, Syndication, Cable TV

Wonderful (Pistachios)

10438.5

Network TV, Spot TV, Cable TV

Snyders of Hanover (Pretzels)

10046.6

Magazines, Outdoor, Spot TV, Cable TV

Blue Diamond (Almonds)

6645.9

Magazines, Spot TV, Network Radio

Weight Watchers

40808.2

Magazines, Sunday Magazines, Newspaper, Outdoor, Network TV, Spot TV, Syndication, Cable TV, Network Radio, Spot Radio

Nutrisystem Inc. Weight Loss Program

251896.6

Magazines, Sunday Magazines, Newspaper, National Newspaper, Network TV, Spot TV, Syndication, Cable TV

well as 2/$5.00 dollars deal. There is a bright red pop out

Jenny Craig

32789.4

Magazines, Network TV, Spot TV, Syndication, Cable TV, Spot Radio

promotion for Wheat Thins that show the product’s name

opportunity to share the ‘tweets’ from the crackers page

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to other’s in their network. There are special offers and announcements of new additions throughout this site. Wheat Thins has used YouTube to give instant access to

— PIB and Kantar Media. AD$ SUMMARY MULTI-MEDIA SERVICE. Magazine Publishers of America Inc, January to December 2009.

break out of the norm for sales promotion of Special K

2011

their “The Crunch is Calling” commercials. The in store sales promotions are discount deals of $3.49 per box as

and high resolution photos of the crackers.

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Nabisco Triscuit

can search through the sales promotions tab from brand to

Nabisco’s focus for promoting Triscuits revolves around

category. It offers an instant response for online discounts,

the idea of a sensual experience when eating the crackers.

sweepstakes, coupons, and free mail-in offers. The web site

Their slogan of “weave some goodness” has a welcoming

has a where to buy option for the consumer to enter their

atmosphere as the homepage opens to a group of mid-

zip code, city, state and see where the product is offered.

to-upper twenties people sitting around on the rooftop surrounded by plants enjoying the crackers with a glass

Kellogg’s (Sunshine) Cheez-it

of wine. Some techniques for promoting the cracker are

Kellogg’s has a promotion that is offered for their Cheez-it

iPhone specific by including a link for the Triscuit Small

cracker product. It is offered until November 30th 2011.

Plates application. This application includes 101 wine to

You can look inside the product box to see if you’ve won a

cracker pairings with 20 recipes to choose from. There is a

Kinect by Xbox 360. Cheez-it is the only Kellogg’s cracker

virtual online game that features the Triscuit Thin Crisps.

product that is currently offering a sweepstakes promotion.

The game allows the user to play with a robotic arm that

In order to receive any coupons from the online web site

picks up crackers and drops them into a bowl then suggests

you must register to get $1 dollar off coupons on select

some good options for a healthy snack. The company

products. The majority of these products do not pertain to

has also included a section that is strictly devoted to its

crackers. The in-store promotions are bright yellow square

Home Farming movement. This non-profit organization is

attachments that show the discounted prices for Kellogg’s

focused on building a home farming community program

Cheez-it crackers. n

that allows people to chat with one another about growing techniques and programs throughout the country. The in store sales promotions include discounted prices of $3.49 per box or a 2/$5.00 dollars deal.

Kellogg’s Wheatables and All-Bran Kellogg’s web site includes a lot of tabs at the bottom of the page that provide information regarding product information, recipes, promotions, coupons, and where to buy their products. There are currently no sales promotions or coupons available on the website for this product. You

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PROBLEM: MEET SOLUTION Strengths

Weaknesses

To drive our next steps and the creation of a media plan and creative pieces, we’ve summed up the following marketing challenges and strategies that the Special K Crackers brand must take.

• Special K brand name (implies health and overall recognition of the Special

What we know is wrong • Special K Crackers both suffer and succeed from the “Special K” brand name. On one hand, consumers recognize the name for the successful weight loss and diet program. On the other, consumers fear that the product tastes too much like a cereal, or “too healthy.”

• Many other Kellogg’s brands are direct competitors and have the potential to cannibalize sales and brand recognition

• Focus group participants disliked the provided packaging as it is currently shown on the test market product and thought it looked too much like the cereal variety, reducing the

K family of products)

• The test market product is in the strongest segment of all cracker sales (“All Other” type crackers)

• 17 crackers for 90 calories; value for consumers concerned with weight loss

• Flavor options rank high on taste testing

• Special K brand name (implies that it will taste like cereal)

• Bland packaging that rated low with focus group and survey participants

• Bland flavor that rated low with focus group participants in taste testing (“Multigrain” flavor only)

• Ingredients aren’t actually that healthy • Direct competition from internal Kellogg’s brands like Kashi and Club

desire to try the product

• Several new competitors to the market serve as a potential threat, from small private labels to manufacturers like Frito Lay that are developing new cracker products

Opportunities

Threats

What we can do to help • Increase in-store displays, promotions, end-cap advertising to drive impulse buys of all Special K branded products

• Taste testing to increase the likelihood of purchase, as discussed from participants during

• Mintel forecast of increased dollar sales in the cracker segment over the

Pepperidge Farm, and Sunshine that

coming years

control the market

• Increased interest in healthy snacking

focus group taste testing

• Increase promotion and advertising of flavored varieties, especially “Savory Herb” which rated well during focus group taste testing

• Increases in consumer spending on snack foods and other vices

• Increased efforts in product variety from Kellogg’s research and development teams

• Expanding Kellogg’s current advertising strategies to include new

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• Industry leaders like Nabisco,

and diverse media

• Potential new products from popular brand names like Lays, Fritos, (PepsiCo) and Pringles (Proctor & Gamble), as well as private label brands

• Rising cost of production

S.W.O.T. Analysis of the current Special K brand and cracker product

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2. test market city

income of $50,000+ per year. The next big demographic is the size of household. Spokane County has an average household size of 2.50 whereas the United States average household size is 2.59. The demographic of the recommended target audience for marital status is a significant comparison from Spokane County to the United States. The marital status of married citizens in Spokane County is 42.7% while the United States marital status of married citizens is 54.4%. The demographic statistics of the Spokane County population that has a bachelor’s degree or higher is 27.2% while the United States is 25.9%. The final demographic characteristic is percent

SPOKANE, WA

employed of which, Spokane County is 57.9%, whereas the percentage employed in the United States is 63.9%. n Spokane County

United States

The test market campaign within Spokane County is a great area because it is a good representation of the United States population. For Special K Crackers test market campaign,

United States Census Bureau data breaks

Basic Demographics

Why Spokane, Washington?

← To The Left

Females 35 to 54

26.7%

28.3%

Household Income of $50,000+

46.1%

41.9%

Average Household Size (Persons in House)

2.50

2.59

down the demographic information for Spokane County.

Employment Status Employed

57.9%

63.9%

Unemployed

5.2%

7.2%

White

88.3%

74.4%

Black or African American

2.1%

12.3%

American Indian

1.5%

0.8%

Asian

2.4%

4.4%

Pacific Islander

0.3%

0.14%

Latino/Hispanic

4.5%

15.1%

Two or More Races

4.1%

2.2%

Married

42.7%

50.3%

Divorced

16.8%

6.3%

Separated

1.8%

10.4%

← Source

Never Married

28.6%

2.2%

Selected Social Characteristics

the recommended target audience in Spokane County is representative of the overall United States population when comparing the demographic statistics. The target audience for Special K Crackers is set to be women ranging 35-54 years old. In the Spokane County this age range is 26.7% of the total population, and 28.3% of the United States

Race

population, which allows for strong market comparison. Relationship Status

Another significant comparison is with household income. 46.1% of the Spokane County population accounts for a household income of $50,000+ per year, as opposed to the United States where 41.9% account for a household

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in the United States: 2009.

Education Level High School Graduate

93%

80.4%

American Community

Bachelor’s Degree or Higher

28%

24.4%

Survey 1-Year Estimates.

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3. campaign objectives

1. Launch Campaign April 1st, 2011 The 12 month test market campaign will begin on April 1st, 2011. This will allow for immediate promotion and advertising of healthy snacking leading into summer. In addition, it will provide lead-time to establish brand

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THE PLAN

recognition for the holiday season when cracker demand is high.

ipsapero maiore labo. Nequo blaccuptiae pore volore, nisitae conseca borepro vidunditam reoptatios volorit adus a sinctusam, tet.

2. Target women ages 35-54 in Spokane DMA (Spokane % vs. U.S. %) The Spokane DMA is a very representative test market in comparison to the United States. The percentage of women ages 35-54 in the Spokane DMA (25.7%) is nearly identical to the percentage of women ages 35-54 in the United

1. Launch campaign April 1st, 2011

States (28.3%) reinforcing our target audience selection.

2. Target women ages 35-54 in the Spokane DMA

Furthermore, females are moving toward healthy snacking

3. Achieve product distribution in 60% of grocery stores in the

alternatives.

Spokane DMA

3. Achieve product distribution in 60% of stores in the Spokane DMA

4. Advertise product via television, radio, outdoor and internet advertising

There are 160 total supermarkets in the Spokane DMA. In order to achieve distribution and exposure to over 60%

5. Achieve 400 Gross Rating Points (GRPs) in the first 13 weeks of

of the total market, we selectively chose 6 retailers that

the campaign

comprise 80 Supermarkets throughout the Spokane DMA.

6. Maintain a consistent theme that reinforces the Special K brand

The retailers include; Albertson’s, Fred Meyer, Safeway, Supervalu, Rosauers and Yokes. The 80 supermarkets

and product packaging choices

combine to achieve a market share of 67.3%.

7. Maintain a budget not to exceed $132,387.84

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4. Advertise product via television, radio, outdoor and internet advertising

the well-known Special K brand. Furthermore, there are

We have selected four media choices to reach our consumer

already familiar with. Therefore, we will use a consistent

target market. These media include television, radio,

USP as well as brand imagery relevant to Special K

outdoor and internet advertising. These four media choices

throughout the campaign to establish strong product

were derived through consistent primary (online survey,

recognition among consumers. A consistent and coherent

focus group) and secondary research (SMRB, Mintel). Our

message that works with the existing Special K brand

research indicates high reach and frequency within each

will carry more weight than a single, alieniated product

of the media mentioned. In addition, the diversity of these

approach.

several other crackers in the market which consumers are

four mediums help reach our target market while being

A consistent and coherent message that works with the existing Special K brand will carry more weight than a single, alieniated product approach. [ REALITY CHECK ]

7. Maintain a budget of $132,387.84

cost-efficient, given our budget.

Our total sales forecast is projected to reach $220,646.4 (see

5. Achieve 400 Gross Rating Points in the first 13 weeks of the campaign

pg. XX). In order to maintain our budget we will use 60%

Since Special K Crackers are a test market product, it is

budget. With slotting fees costing $40,800, our remaining

imperative that we reach our target market quickly and

balance is $91,587.80. The remaining $91,587.80 will be

effectively. We must get our product into the hands of

allocated with 60% ($54,952.70) toward sales promotion

consumers as soon as possible. We will reach 400 GRPs

and 40% ($36,635.14) toward advertising expenditures

in the first 13 weeks of the campaign through the use

allowing us to remain within our total

of television, radio, outdoor billboard and internet

budget. n

of estimated total sales ($132,387.84) for the campaign

advertising. These advertisements, while effectively reaching our target market, will emphasize the presence of product promotions such as on-pack coupons, in-store sampling and print coupons.

6. Maintain a consistent theme that reinforces the Special K brand and product packaging choices Special K Crackers are a new and unknown product within

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4. trade distribution plan

Place of Distribution

Market Share

Supers Owned

Albertson’s Inc./Distribution Center

Portland, OR

12.4%

Fred Meyer Stores Inc./Dist Center

Puyallup, WA (4) Calakamas, OR (1)

7.3%

Safeway Inc/East Portland Div & Seattle Div

Clackamas, OR (1) Bellevue, WA (27)

21.3%

Supervalu (Trading Co.)

Spokane, WA

9.2%

URM Stores Inc. (Rosauers Supermarkets Inc.)

Spokane, WA

10.3%

URM Stores Inc. (Yokes Washington Foods Inc)

Spokane, WA

6.8%

67.3%

Out of 160 total supermarkets in the Spokane DMA, we have determined 80 total supermarkets that will sell Special K crackers. All these 80 stores combined make up a 67.3%

Totals

market share, which levels the product above 60%. For a successful execution of placing a new product on the shelves within the test market of Spokane Washington, it is imperative to have a presence in at least 60% of supermarkets. By breaking down the market share of supermarkets we can determine a stronger introduction of the new product to be successful in the Spokane market.

Source ↑

in the Spokane DMA. In alignment with our primary

Selected Social Characteristics

research, Safeway has the largest market share and will

in the United States: 2009.

be receiving a proportionate amount of product quantity and promotional dollars. By targeting the top supermarket

American Community Survey 1-Year Estimates.

chains, the distribution of Special K crackers has been simplified. In the promotions section, dollars spent will

Slotting Fees

reflect market share and the number of stores for each

In order to place Special K crackers on the shelves of

To put these three products on the shelves of these 80 stores, it will cost $40,800 for slotting fees.

The table above shows the top supermarket chains

chain. n

these six retailers it is necessary to pay slotting fees. The Northwest regions slotting fees average $170 per store. Slotting fees are measured by the amount of shelving space it takes to place the product on the store’s shelves, and the variety of flavors of the product. For Special K crackers three flavors, Multi-Grain, Savory Herb, and Italian Tomato

[ REALITY CHECK ]

& Herb to be placed on one retailers’ shelf would cost ($170.00 x 3 flavors = $510.00). To put these three products on the shelves of these 80 stores, it will cost $40,800 for slotting fees.

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5. sales forecast

6. target market recommendation

The first step in establishing our budget required

In order to determine our target market we analyzed the

calculating the sales forecast for Special K Crackers. In order

information collected from secondary research sources like

to calculate the sales forecast several key factors were taken

Simmons and Mintel. The information on demographic

into account including the products whole sale case cost

characteristics and lifestyle on the following pages also help

($33), the wholesale cost per box ($33 per case/12 boxes

narrow down a specific target market. To summarize, here is

= $2.75), average weekly case movement (2 per week),

a basic breakdown of the recommended target audience:

number of boxes per case (12), number of stores carrying the product (80), and total weeks in the calendar year (52).

Gender

Female

With all numbers known, we calculated the sales forecast

Age

35-54 Years Old

Marital Status

Presently Married

Employment Status

Employed Full-time

Education Level

High School or College Graduate

Children in Household

Household Income

$30,000+

Race

Caucasian (White)

Other

Health Concious, Active

using the following method:

ESTIMATED SALES FORECAST ($2.75 x 2(12) x 80 x 52 = $274,560.00 Depending on the success of the campaign and the acceptance of the product by consumers, an increase in product movement should be anticipated. Predicting the magnitude that product movement may increase is difficult and runs the risk of being severely inaccurate. For

In order to determine our target market we analyzed the

this reason we are playing off of conservative but realistic

information collected from secondary research sources like

numbers that are considered respectable for a new product

Simmons and Mintel. The information on demographic

launch in the cracker category.

characteristics and lifestyle on the following pages also help

WHY?

narrow down a specific target market.

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Why females?

Gender of people that eat crackers

Marital status of adults 35-54 years old that eat crackers

TOTALS

MALE

FEMALE

The cracker industry is highly fragmented and

Sample

20250

8841

11409

it is important to know exactly who is eating

'(000)

91940

36003.4

55936.7

Vertical

80.36%

75.78%

83.61%

Horizontal

100.00%

39.16%

60.84%

Index

100

104

Base

80.36%

31.47%

48.89%

crackers. This chart shows us who is more likely to eat crackers between males and females. The data at left states that there is a higher amount of women that consume crackers as opposed to males. Based on the high vertical percentage

(SMRB, 2008-2009)

Why presently married?

MARRIED

NOT MAR.

The majority of adults 35-54 years old are

Sample

5677

2021

presently married, accounting for 81.05%. They

'(000)

18924.8

15240.2

Vertical

81.05%

77.29%

Horizontal

55.39%

44.61%

Index

102

Base

43.94%

35.39%

(SMRB, 2008-2009)

have the highest index number of 102 and over 80% of adults presently married eat crackers. This is a good group to target. Following those who are married, 77.29% of adults 35-54 are not married and have an index number of 97.

and index number of 104, we can determine

Overall, those who are married would be the

that females are our main target gender.

ideal market to focus on for this age group.

Why employed full-time?

Age of females that eat crackers 35-39

40-44

45-49

50-54

Based on the data above, we can see that the

Sample

890

1055

1163

1257

majority of adults ages 35-54 are full-time

'(000)

4643.96

4826.06

4603.35

5265.82

Vertical

85.08%

83.44%

84.46%

78.43%

Horizontal

8.30%

8.63%

8.23%

9.41%

Index

102

100

101

Base

6.94%

7.21%

6.88%

7.87%

workers (working 30+ hours per week), just under double the non-employed population with 42.87%. Adults that are not employed have a higher vertical percentage (87.2%) than those who are employed (81%). Unfortunately,

(SMRB, 2008-2009)

Employment status of females age 35-54 that eat crackers EMPLOYED

UNEMP.

Sample

2316

1323

'(000)

11299

5459

Vertical

81%

87.20%

Horizontal

52.30%

58.90%

Index

106

101

Base

40.10%

50.60%

(SMRB, 2008-2009)

those people account for a small percentage of

Why 34-54 years old?

the population. Full-time employed adults had

The demographic of females that consume crackers is strong for the age range of 35-54 years old. These ages show the highest index numbers for the average of the United States. The chart shows

the highest index number of 106, but this still a relatively high vertical percentage.

that the highest vertical percentages are between these age ranges.

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Why high school or college graduates?

Education level of females age 35-54 that eat crackers

Household income of females 35-54 that eat crackers

Why income of $30,000+?

TOTALS

$30,000+

Adults ages 35-54 earning a household income

Sample

6665

3737

of $30,000 or more every year make up the

3801

'(000)

26124

14633

84.4%

84.1%

Vertical

78.10%

81.50%

Horizontal

54%

61.6%

Horizontal

100%

56%

index numbers. The main target audience has

Index

102

104

Index

100

104

graduated from a four-year college and has an

Base

44.9%

49.9%

Base

78.10%

43.70%

From the data to the right, female cracker consumers that graduated high school or college have the highest vertical percentages as well as

HIGH SCH.

4 YR COL.

Sample

1069

886

'(000)

5319

Vertical

(SMRB, 2008-2009)

index number of 104 with a vertical percentage

majority of the population with a vertical percentage of 81.5%. The index number for this income range at 104 shows that this age group earning $30,000 or more every year are more likely to eat crackers.

(SMRB, 2008-2009)

of 84.1%.

Race of people age 35-54 that eat crackers

Children in the household of people that eat crackers TOTALS

NONE

ONE

TWO

THREE

FOUR

FIVE

SIX

Sample

7698

11626

3075

3183

1476

581

173

'(000)

34165

59489.7

13344.2

12013.2

4568.03

1631.03

556.819

198.822

Vertical

79.33%

78.40%

81.39%

86.34%

87.74%

82.62%

80.92%

98.91%

Horizontal

100.00%

64.71%

14.51%

13.07%

4.97%

1.77%

0.61%

0.22%

Index

100

101

107

109

103

101

123

Base

79.33%

52.00%

11.66%

10.50%

3.99%

1.43%

0.49%

0.17%

TOTALS

WHITE

BLACK

ASIAN

OTHER

Sample

7698

6088

540

206

864

'(000)

34165

25871.9

4709.38

1195.24

2388.47

Vertical

79.33%

79.99%

81.46%

65.13%

76.88%

Horizontal

100.00%

75.73%

13.78%

3.50%

6.99%

Index

100

101

103

Base

79.33%

60.07%

10.93%

2.78%

5.55%

(SMRB, 2008-2009)

Why Caucasian?

Why one or more children in the household?

Based on the 2008 Lifestyle Market Analyst, 86.4% of the Spokane designated market area is White.

Based on the Simmons data above, blah blah blah. Parents are heavily influenced by their children

According to the Simmons data above, 75.10% of adults ages 35-54 in the United States are White.

when buying snack crackers. According to Mintel reports, parents are more likely to eat the same

Based on this data, we see that of the majority, 79.99% are likely to eat crackers. This is the second

type of cracker that their children do (Mintel, blah).

highest percentage, only African Americans eat more with 81.46%, yet only accounts for 13.42% of the population. The White population had an index number of 101, this shows relatively high cracker consumption.

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Target Markets Considered, But Not Recommended Through the secondary research we established two other target market recommendations to be considered but not recommended for focus.

The two audiences considered but not recommended are:

Females Age 18-24 The first age group of females considered were between 18-24 years old. According to Simmons and Mintel, this age group has become more health conscious through media focus on increasing obesity in the United States. Adults in this age group were a big consideration for a target market but did not represent large enough vertical percentages and index numbers to be the primary target market.

Adults Age 55+ A third target audience considered were ages 55+. We chose this age group because Mintel reports showed older generation were predicted to see the most growth in 20102015. Golden Seniors are worried about their diet for health reasons (such as certain diseases and cancers).

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7. media plan

Media Budget Allocation

Internet 6%

Media Objectives The overarching advertising goal for this product is to increase awareness among our designated target audience and drive increased purchases. Within the competitive

Out Of Home 26%

snack category, Special K Crackers will see success in

Television 36%

differentiating from its competitors by implementing comprehensive and solid media planning. Listed below are our key media objectives for a successful campaign:

•

Primarily target women between ages 35-54 with one or more children in the household.

•

Radio 32%

Allocate media budget to four recommended mediums: radio, television, internet and outdoor.

•

Make media purchase decisions based on cost efficiency, aiming to increase the awareness of this new product.

•

Achieve a GRP goal of at least 633 GRPs for every two months of advertising pulses.

•

Where are we advertising?

We chose to advertise Special K crackers on a pulsed

Other Page →

or flighted schedule, because we need to manage and

The media allocations for

allocate our media buying without exceeding the media

the proposed campaign.

budget.

popular brands like Cheez-It (Sunshine) and Wheat Thins (Nabsico). Many niche, healthy, organic,

market share of less than 2% each. Overall, Kellogg’s and Special K must drive increased effort into

budget breakdown, see

this test market product over the next year to adapt a better competitive position in the market.

page XX.

KELLOGG’S®

industry when compared to other competitors. As shown in the chart above, the market leaders are

and weight-loss branded style crackers fall in the above 11.4% of not listed brands, each with a

For a complete media

As the cracker market currently stands, Kellogg’s products suffer from their overall small share in the

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Television Prime Time: Age 35-54 Female and Children in Household 1+

Media Quintiles

Q1 (HIGHEST)

The four types of media that we recommend, based on the quintile data from Simmons Choice 3, are: (1) television, (2) radio, (3) outdoor, and (4) Internet.

Television Prime Time

Q3 (MIDDLE)

Q5 (LOWEST)

Total (000)

2,866

3,811

4,185

4,283

4,247

Female (000)

1,699

2,225

2,472

2,363

2,658

Vertical

14.8%

19.7%

21.6%

20.6%

23.2%

Horizontal

58.9%

59.1%

55.2%

62.6%

Index

100

106

(SMRB, 2008-2009)

56.1% of our target audience is moderate to heavy TV users. Although about 44% of our audience tends to not watch TV during prime time hours, more than half of our target audience

Radio Drive Time: Age 35-54 Female and Children in Household 1+

are moderate TV viewers. Incorporating the data from our online survey, about 56% of all respondents agreed that TV was another medium that they preferred to use. Both data strongly suggests that television, especially prime time is a good opportunity to reach our target audience. Television is a highly effective media in terms of its high reach and the unique feature that it can incorporate color, sound, and motions all at once. The supportive data from our research

Q1 (HIGHEST)

Q3 (MIDDLE)

Q5 (LOWEST)

Total (000)

4,217

4,298

4,283

3,435

3,180

Female (000)

2,298

2,349

2,724

2,251

1,824

Vertical

20.1%

20.5%

23.8%

19.7%

15.9%

Horizontal

54.8%

54.1%

55.5%

54.8%

52.3%

Index

108

111

along with our goal for maximizing reach and frequency, we have chosen television as our

(SMRB, 2008-2009)

primary medium in order to reach our target audience. Outdoor: Age 35-54 Female and Children in Household 1+

Radio Drive Time

Q1 (HIGHEST)

Approximately 40.6% of our target audience is represented in the two quintile charts above. This is compared with a total vertical percentage of 35.4% from radio drive time quintiles four and five. Although index numbers from women ages 35-54 who have one or more children in the household are lower than 100, radio is still strongly represented within our target audience that

Q3 (MIDDLE)

Q5 (LOWEST)

Total (000)

4,548

3,838

3,975

3,663

3,389

Female (000)

2,657

2,239

2,339

2,097

2,112

Vertical

23.2

19.6

20.4

18.3

18.5

Horizontal

58.4

58.3

58.8

57.2

62.3

Index

100

106

listen throughout the entire day. 24% of our target audience tends to listen to radio all day; even

(SMRB, 2008-2009)

though a similar percentage is in Quintile 5 at 20.0%. However, 41.3% of the target audience is more likely to use the radio all day, but more importantly; less of our target audience is unlikely

Internet Use Home/Work: Age 35-54 Female and Children in Household 1+ Q1 (HIGHEST)

to listen to the radio all day by 3.1%.

Outdoor According to the data from quintile one, 23.2% of our target audience is more likely to use outdoor medium. This is in comparison with just under 19% of mothers being less likely to use

Q3 (MIDDLE)

Q5 (LOWEST)

Total (000)

2,923

3,627

2,923

3,434

3,164

Female (000)

1,829

1,906

1,813

2,165

1,828

Vertical

16.0

16.7

15.8

18.9

16.0

Horizontal

62.6

52.5

61.8

63.0

57.8

Index

106

105

107

(SMRB, 2008-2009)

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Cost Efficiency Analysis

outdoor as their preferred medium. Up to about 43% of our target audience prefers to use the outdoor medium. This data supports our recommendation of choosing outdoor advertising as a

The following pages demonstrate the available types of media at different rates available for our

supplementary media.

campaign. The majority of these channels are within budget allowing us to develop a stronger

Internet Use Home/Work

and more effective advertising campaign.

According to the data from quintile one, 16.0% of our target audience is more likely to use the

Medium

Media Company

Size/Format/Show

Circulation/Rating/Reach/Females 35-54

Unit of Space/Cost

CPM Females 35-54

KXLY

Dancing with the Stars Monday 8pm10pm

25,000

30 Sec: $1,000

$40.00

KXLY

No Ordinary Family Tuesday 8pm-9pm

10,000

30 Sec: $500

$50.00

KXLY

Modern Family Wednesday 9pm-10pm

27,000

30 Sec: $800

$29.63

KXLY

Castle Monday 10pm-11pm

17,000

30 Sec: $700

$41.18

KXLY

Private Practice Thursday 10pm-11pm

19,000

30 Sec: $500

$26.32

KREM

How I Met Your Mother Monday 8pm-8:30pm

43,000

30 Sec: $1,500

$348.84

KREM

The Big Bang Theory Thursday 8pm-8:30pm

83,000

30 Sec: $2,200

$256.06

KREM

Rules of Engagement Thursday 8:30pm-9pm

46,000

30 Sec: $2,200

$271.60

data and research strongly suggest that the internet is an ideal medium that can reach our target

KHQ

Chuck Monday 8pm-9pm

86,000

30 Sec: $700

$81.40

audience.

KHQ

Biggest Loser Tuesday 8pm-10pm

139,000

30 Sec: $700

$50.36

KHQ

Community Thursday 8pm-9pm

69,000

30 Sec: $500

$72.46

KHQ

Minute To Win It Wednesday 8pm-9pm

49,000

30 Sec: $300

$61.22

internet at either home or work. Although the same percentage is also represented in the last quintile, the index number is lower than 100, whereas the index number from quintile 1 is 106.

Television

It clearly demonstrates that the performance of those who access the internet at home or work is better than those who are less likely.

Although the data from quintiles does not seem to be strong, we are also taking the data from our primary research and sources like Mintel into consideration. Based on our online survey, nearly 70% of respondents ranked internet social media sites, such as Facebook and Twitter, as the most frequently used media choice. Only 3.5 % of respondents said they were unlikely to use this type of media. Since more than half of those respondents were women, it suggests that women are very likely to access the internet.

Moreover, based on Mintel, Marketing to Women-US-July 2009, “Some 57% of women go online for health information, more so than turning to a conventional doctor, underscoring the potential that the internet has to be the primary tool for marketing health to women.” Our

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Medium

Media Company

Size/Format/Show

Circulation/Rating/Reach/Females 35-54

Unit of Space/Cost

CPM Females 35-54

KIXZ

Country / 6-10 am M-F

400

30 Sec: $23

30 Sec: $57.50

60 Sec: $30

60 Sec: $75

KIXZ

Country / 10am3pm M-F

400

30 Sec: $26 60 Sec: $35

30 Sec: $65 60 Sec: $87.50

KIXZ

Country / 3pm7pm M-F

400

30 Sec: $23 60 Sec: $30

30 Sec: $57.50 60 Sec: $75

KIXZ

Country / 6-10am Sa-Su

400

30 Sec: $15 60 Sec: $20

30 Sec: $37.50 60 Sec: $50

KIXZ

Country / 10am3pm Sa-Su

400

30 Sec: $15 60 Sec: $20

30 Sec: $37.50 60 Sec: $50

KCDA

Hot AC / 6-10 am M-F

500

30 Sec: $23 60 Sec: $30

30 Sec: $46 60 Sec: $60

KCDA

Hot AC / 10am3pm M-F

500

30 Sec: $26 60 Sec: $35

30 Sec: $52 60 Sec: $70

KCDA

Hot AC / 3pm7pm M-F

500

30 Sec: $23 60 Sec: $30

30 Sec: $46 60 Sec: $60

KCDA

Hot AC / 6-10am Sa-Su

500

30 Sec: $15 60 Sec: $20

30 Sec: $30 60 Sec: $40

KCDA

Hot AC / 10am3pm Sa-Su

500

30 Sec: $15 60 Sec: $20

30 Sec: $30 60 Sec: $40

KEZE

80s Rock / 6-10 am M-F

200

30 Sec: $35 60 Sec: $35

30 Sec: $87.50 (45-54 yr olds) 60 Sec: $87.50

KEZE

80s Rock / 10am3pm M-F

200

30 Sec: $30 60 Sec: $30

30 Sec: $75 (45-54 yr olds) 60 Sec: $75

KEZE

80s Rock / 3pm7pm M-F

200

30 Sec: $30 60 Sec: $30

30 Sec: $75 (45-54 yr olds) 60 Sec: $75

KEZE

80s Rock / 6-10am Sa-Su

200

30 Sec: $35 60 Sec: $35

30 Sec: $87.50 (45-54 yr olds) 60 Sec: $87.50

KEZE

80s Rock/10am3pm Sa-Su

200

30 Sec: $30 60 Sec: $30

30 Sec: $75 (45-54 yr olds) 60 Sec: $75

KZZU

Modern Hits / 6-10 am M-F

500

30 Sec: $75 60 Sec: $75

30 Sec: $150 60 Sec: $150

KZZU

Modern Hits / 10am-3pm M-F

500

30 Sec: $75 60 Sec: $75

30 Sec: $150 60 Sec: $150

KZZU

Modern Hits / 3pm-7pm M-F

500

30 Sec: $75 60 Sec: $75

30 Sec: $150 60 Sec: $150

KZZU

Modern Hits / 6-10am Sa-Su

500

30 Sec: $25 60 Sec: $25

30 Sec: $50 60 Sec: $50

KZZU

Modern Hits / 10am-3pm Sa-Su

500

30 Sec: $35 60 Sec: $35

30 Sec: $70 60 Sec: $70

Radio

Media Company

Size/Format/Show

Circulation/ Rating/Reach/ Females 35-54

Cost/Flight

CPM 18+

Lamar Advertising

Permanent Bulletin / 10'x30' / 6 Panels

348,000

Total 4 Week Net Rate = $6,000

$17.24

Lamar Advertising

Permanent Bulletin / 10'x30' / 12 Panels

696,000

Total 4 Week Net Rate = $10,800

$15.52

Media Company

Size/Format/Show

Circulation/ Rating/Reach/ Females 35-54

Cost/Flight

CPM Transit

Gateway Outdoor Advertising

Full Bus Wrap

Daily Effective Circulation (30,000) Reach 88.94%

Total 4 Week Showing / $2,900

$286.58

Gateway Outdoor Advertising

Back Attack Bus Wrap

Daily Effective Circulation (15,000) Reach 88.94%

Total 2 Month / 3 ($600) Showings Per Month / 6 Showings Total

$118.59

Media Company

Size/Format/Show

Circulation/ Rating/Reach/ Females 35-54

Cost/Flight

CPM

Facebook

Integetrated Cyber 48,620 people Ad / Social Media / Mo Ad

Total 3 Months / 1 Month Pulses

$2.30

Google Adwords

Integetrated Cyber Ad / Social Media Ad

Total 3 Months / 1 Month Pulses

$0.25

Out Of Home

KELLOGG’S®

S P E C I A L K ® C R A C K E R S T E S T M A R K E T C A M PA I G N

2011

Transit

Medium

Internet

462,677 people/ Mo

TURN BOOK CLOCKWISE

KELLOGG’S®

S P E C I A L K ® C R A C K E R S T E S T M A R K E T C A M PA I G N

2011

84 KELLOGG’S® | S P E C I A L K ® C R A C K E R S T E S T M A R K E T C A M PA I G N | 2011 KELLOGG’S® | S P E C I A L K ® C R A C K E R S T E S T M A R K E T C A M PA I G N | 2011

Total GRPs = 1289 Refer to Budget section for itimized media budget

Lamar Outdoor 10'x30' 6 Panels

Bus Back Attack (2) 4 Wk Showings Total 3 Showings at $600

Total (1) 4 wk Showing at $2,900

Out Of Home Full Bus Wrap 1 Bus

Internet Facebook $2.30 CPC

Audience: Women 35-54, HHLD Chld. 1+

Total GRPs = 609 Refer to Budget section for itimized media budget

Minute To Win It Wed 8-9pm $300/Spot

Biggest Loser Tu 8-9pm $700/spot

3/wk 39 GRPs

7/wk 64.4 GRPs

April 2 3

May 2 3

4/wk 25 GRPs

May 2 3

1/Mo 208 GRPs

X X X

2/wk 54 GRPs

4/wk 10 GRPs

4/wk 6 GRPs

1/Mo 208 GRPs

April 2 3

X 1/wk 82.4 GRPs

X 32.4X 1/wk GRPs

6/wknd 15 GRPs

Television Dancing with the Stars M 8-10pm X $1,000/spot

KZZU Modern Hits 6-10am M-F KZZU Modern Hits 3-7pm M-F $75/Spot KEZE 80s Rock 10am-3pm Sa-Su $30/Spot

Radio KCDA Hot AC 6-10am M-F KIXZ Country 6-10am M-F $23/Spot

Audience: Women 35-54, HHLD Chld. 1+

June 2 3

July 2 3

August 2 3 4

August 2 3 4 1

October 2 3 4

1/Mo 208 GRPs

September 1 2 3 4

1/wk 32.4 GRPs

October 2 3 4

1/Mo 208 GRPs

3/wk 11.7 GRPs

4/wk 92 GRPs

September 1 2 3 4

December 1 2 3 4 1

February 2 3 4

1/wk 23.2 GRPs

2/wk 26 GRPs

2/wk 26 GRPs 3/wk 39 GRPs

January 2 3 4

March 2 3 4

November 1 2 3 4

December 1 2 3 4

January 2 3 4

1/Mo 208 GRPs

February 2 3 4

1/Mo 208 GRPs

March 2 3 4

Media Flowchart (2)

November 1 2 3 4

Media Flowchart (1)

8. creative plan “MORE CRUNCH. LESS CRAVING.”

PHASE 1 “Introduction”

PHASE 2 “Family”

PHASE 3 “Resolutions”

A new snack from Special K

The newest, savory member of the Special K Family

The new snack with more to love and less to gain

:30 Television Spot (T1) :30 Radio Spot (R1) Painted Bulletin Full Bus Wrap Bus Back Attack Event/Promo Items

:30 Television Spot (T2) :30 Radio Spot (R2)

:30 Television Spot (T3) :30 Radio Spot (R3)

17 crackers with only 90 calories

KELLOGG’S®

S P E C I A L K ® C R A C K E R S T E S T M A R K E T C A M PA I G N

2011

KELLOGG’S®

S P E C I A L K ® C R A C K E R S T E S T M A R K E T C A M PA I G N

2011

TURN BOOK CLOCKWISE

KELLOGG’S®

S P E C I A L K ® C R A C K E R S T E S T M A R K E T C A M PA I G N

2011

KELLOGG’S®

S P E C I A L K ® C R A C K E R S T E S T M A R K E T C A M PA I G N

2011

90 KELLOGG’S® | S P E C I A L K ® C R A C K E R S T E S T M A R K E T C A M PA I G N | 2011 KELLOGG’S® | S P E C I A L K ® C R A C K E R S T E S T M A R K E T C A M PA I G N | 2011

New Special K® Crackers. 17 crackers, only 90 calories.

More Crunch. Less Craving. Special K® Snack Crackers Try the new snack from Special K® That won’t weigh you down!

STA BUS “FULL WRAP” MEDIUM: Out Of Home CLIENT: Kellogg’s Speical K Crackers UNIT OF SPACE: 479.25”x101.5” Per Side Live Area

More crunch. Less craving.

New Special K® Crackers. 17 crackers, only 90 calories.

More crunch. Less craving.

New Special K® Crackers. 17 crackers, only 90 calories.

Stop waiting. Start snacking.

NE W

STA BUS “BACK ATTACK” MEDIUM: Out Of Home CLIENT: Kellogg’s Speical K Crackers UNIT OF SPACE: 91”x85” Live Area

92 KELLOGG’S® | S P E C I A L K ® C R A C K E R S T E S T M A R K E T C A M PA I G N | 2011 KELLOGG’S® | S P E C I A L K ® C R A C K E R S T E S T M A R K E T C A M PA I G N | 2011

PAINTED BULLETIN (LAMAR OUTDOOR) MEDIUM: Out Of Home CLIENT: Kellogg’s Speical K Crackers UNIT OF SPACE: 10’x30’

EVENT DISPLAY BANNER AND REUSABLE BAG MEDIUM: Out Of Home/Promotional Items CLIENT: Kellogg’s Speical K Crackers UNIT OF SPACE: 10’x10’ Banner/Reusable Bag

30’

10’

SPOT 1R: “Crunch Time” MEDIUM: Radio CLIENT: Kellogg’s Speical K Crackers UNIT OF SPACE: 30 Seconds

SPOT 2R: “Back To School” MEDIUM: Radio CLIENT: Kellogg’s Speical K Crackers UNIT OF SPACE: 30 Seconds

[MUSIC IN AND UNDER: “GRAVEL” — ORBA SQUARA]

[FEMALE ANNOUNCER: YOUNGER WOMAN, CONSISTENT TALENT VOICE OVER CAMPAIGN]

“There’s a new time of your day today. A special time. Just for you.

“When back to school becomes crunch time, make sure you’re ready with a special snack full

It’s called crunch time… and this time, it’s a good thing!

of multigrain goodness for the whole family! Try Special K Crackers, the newest member of

You’re ready for new Special K Crackers! 17 crackers with only 90 calories! That’s more crunch,

the Special K family! 17 crackers with only 90 calories. That’s more crunch, and less craving all

and less craving! They’re the snack that has your back no matter what time of the day it is.

around! So find them in the cracker aisle, and look for a one dollar off coupon for new Special K

So find them in the cracker aisle, and look for a one dollar off coupon for new Special K Crackers

Crackers on some of your other favorite Special K products!

on some of your other favorite Special K products!

Some restrictions may apply, offer valid April 2011 through April 2012.

Visit Special K dot com to find out more.”

Visit Special K dot com to find out more.” [MUSIC UNDER AND OUT] [MUSIC UNDER AND OUT] ###

TURN BACK AROUND

###

KELLOGG’S®

S P E C I A L K ® C R A C K E R S T E S T M A R K E T C A M PA I G N

2011

KELLOGG’S®

S P E C I A L K ® C R A C K E R S T E S T M A R K E T C A M PA I G N

2011

SPOT 1T: “Crunch Time” MEDIUM: Television CLIENT: Kellogg’s Speical K Crackers UNIT OF SPACE: 30 Seconds

SPOT 3R: “Resolutions” MEDIUM: Radio CLIENT: Kellogg’s Speical K Crackers UNIT OF SPACE: 30 Seconds

VIDEO [MUSIC IN AND UNDER: “GRAVEL” — ORBA SQUARA]

[FEMALE ANNOUNCER: YOUNGER WOMAN, CONSISTENT TALENT VOICE OVER CAMPAIGN]

DIAGRAM

1. MS OF WOMAN SITTING AT DESK IN CUBICLE TYPING ON HER COMPUTER, BUSINESS SETTING.

AUDIO [SFX, IN AND UNDER: OFFICE NOISES, PHONES RINGING, HUSHED DIALOUGE]

“New Years resolutions can be hard to keep, so make sure you reward yourself the right way and try new Special K Crackers! With flavors like tasty multi-grain or savory herb, they’re 17 delicious crackers with only 90 calories! Get the snack with more crunch, and less craving! Find them in

2. CU OF WOMAN LOOKING STARTLED BY THE SOUND OF A LOUD CRUNCH

[SFX: LOUD CRUNCH]

the cracker aisle, and look for a one dollar off coupon for new Special K Crackers on some of your other favorite Special K products! 3. MS OF WOMAN RETURNING TO HER TYPING

Some restrictions may apply, offer valid April 2011 through April 2012. Visit Special K dot com to find out more.”

[MUSIC UNDER AND OUT] 4. SHE LOOKS STARTLED AGAIN. THE SOUND IS COMING FROM A DIFFERENT DIRECTION

###

5. OVER SHOULDER CU OF SCREEN AS SHE OPENS AN OFFICE INSTANT MESSAGE CHAT WINDOW ON HER

[SFX: LOUD CRUNCH]

[SFX: NEW INSTANT MESSAGE CHIME]

COMPUTER. WE SEE HER TYPE “what’s going on?” [SFX: LOUD CRUNCH] 6. CU OF HER FACE, LOOKING STARTLED BY THE SOUND AGAIN

KELLOGG’S®

S P E C I A L K ® C R A C K E R S T E S T M A R K E T C A M PA I G N

2011

KELLOGG’S®

S P E C I A L K ® C R A C K E R S T E S T M A R K E T C A M PA I G N

2011

SPOT 1T: “Crunch Time” CONTINUED MEDIUM: Television CLIENT: Kellogg’s Speical K Crackers UNIT OF SPACE: 30 Seconds VIDEO

DIAGRAM

7. CU OF INSTANT MESSAGE WINDOW ON COMPUTER SCREEN AGAIN. WE SEE A CO-WORKER REPLY: “look up :)”

AUDIO

VIDEO

DIAGRAM

AUDIO

13. ANIMATION SHOWING PRODUCT PACKAGE ON REFLECTIVE WHITE SURFACE. SUPERS INCLUDE: “17 Crackers, 90 Calories!”

FEMALE VOICE OVER: “Before lunchtime, now there’s crunch time! Time for new Special K Crackers!

14. ANIMATION CONTINUES

17 crackers with only 90

8. CUT TO MS OF WOMAN STANDING UP, CAMERA FOLLOWS HER UP PEEKING OVER THE CUBICLE WALL

SHOWING 17 CRACKERS STACKING UP, SUPER: “More crunch. Less Craving.” ENDS OUT FLOURISH.

calories. Now that’s more crunch, and less craving!

9. CUT TO LS OF CUBICLES IN OFFICE. VARIOUS HANDS POP UP OVER THE WALLS, ALL HOLDING BOXES OF SPECIAL K CRACKERS

15. ANIMATION FINISHES WITH THE SPECIAL K LOGO, SPINS OUT AND RETURNS TO SCENE

New Special K Crackers! Find them in the cracker aisle.”

10. CUT TO CU OF WOMAN IS SHE SITS BACK DOWN IN FRONT OF HER COMPUTER SCREEN, SIMILING

16. QUICK CUT TO LAST TWO-SECOND LS OF CUBICLE ROOM AGAIN. NOW EVERYONE IS EATING THEM!

[SFX: A WHOLE ROOMFUL OF CRUNCHING IS HEARD]

11. CUT TO MS FROM PERSPECTIVE OF WOMAN AS A CO-WORKER ROLLS INTO VIEW ON A CHAIR OUTSIDE CUBICLE, HOLDING A BOX

SPOT 1T: “Crunch Time” CONTINUED MEDIUM: Television CLIENT: Kellogg’s Speical K Crackers UNIT OF SPACE: 30 Seconds

[SFX: NEW INSTANT MESSAGE CHIME]

[SFX: CHAIR ROLLS IN] CO-WORKER: “Trust me, there’s plenty to

TO SHARE

share.”

12. TRANSITION AS WOMAN ROLLS BACK OUT OF VIEW TO MOTION ANIMATED SEQUENCE UNDER V.O.

[MUSIC IN AND UNDER: “GRAVEL” — ORBA SQUARA]

KELLOGG’S®

[MUSIC UNDER AND OUT: “GRAVEL” — ORBA SQUARA]

S P E C I A L K ® C R A C K E R S T E S T M A R K E T C A M PA I G N

2011

KELLOGG’S®

S P E C I A L K ® C R A C K E R S T E S T M A R K E T C A M PA I G N

2011

SPOT 2T: “Shopping” MEDIUM: Television CLIENT: Kellogg’s Speical K Crackers UNIT OF SPACE: 30 Seconds VIDEO

DIAGRAM

AUDIO

VIDEO

1. LS OPEN TO BORED LOOKING WOMAN PUSHING GROCERY CART DOWN AISLE WITH ROWDY KIDS

[TINNY GROCERY STORE MUSIC IN AND UNDER: “My Heart Will Go On” — Celine Dion]

6. CUT TO CU OF WOMAN, A SMILE APPEARING ON HER FACE AS SHE TURNS TO THE CRACKER AISLE

[GROCERY STORE MUSIC CUTS OUT QUICK AND IS REPLACED WITH IN AND UNDER: “GRAVEL” — ORBA SQUARA]

2. CUT TO MCU OF WOMAN

[MUSIC CUTS TO LATER

7. CUT TO LS OF CRACKER

FEMALE VOICE OVER:

PUSING CART, LOOKING UNHAPPY. CHILDREN YELLING

PART OF THE SONG, SHOWING PASSAGE OF TIME]

AISLE, RIGHT SIDE SHINING WITH NEW SPECIAL K CRACKERS IN FULL SUPPLY

“Finally, the tasty snack that’s just what you’ve been looking for! Try the newest savory member to the Special K family!

3. CUT TO MCU OF WOMAN PUSING CART, LOOKING UNHAPPY (SUBSEQUENT SHOTS ARE ALL OF WOMAN IN SAME PART OF FRAME, BACKROUND CHANGES WITH EACH CUT SHOWING HER KIDS CAUSING HAVOC IN DIFFERENT PARTS OF THE STORE)

[MUSIC CUTS TO LATER PART OF THE SONG, SHOWING PASSAGE OF TIME]

8. CUT TO CU OF WOMAN GRABBING A BOX OF SPECIAL K CRAKERS

[MUSIC CUTS TO LATER PART OF THE SONG, SHOWING PASSAGE OF TIME]

9. CUT TO MS OF WOMAN FROM BEHIND, TOSSING THE BOX INTO THE CART WHILE THE CHILDREN STOP CAUSING CHAOS AND LOOK

4. CUT TO BACKGROUND ACTIVITY IN THE BAKERY

[MUSIC CUTS TO LATER PART OF THE SONG, SHOWING PASSAGE OF TIME]

10. TRANSITION TO ANIMATION SEQUENCE WITH PRODUCT AND SUPER: “More crunch. Less craving” AND LOGO

FEMALE VOICE OVER: “From our family to yourS, new Special K Crackers! More crunch, less craving! Find them in the cracker aisle!”

[MUSIC CUTS TO LATER PART OF THE SONG, SHOWING PASSAGE OF TIME]

11.QUICK CUT TO LAST TWO SECOND LS OF AISLE, MOM FLYS BY END RIDING ON A CART NOW FULL OF BOXES, KIDS IN TOW

[SFX: CART FLYING BY, MOM SHOUTING WITH GLEE] [MUSIC UNDER AND OUT: “GRAVEL” — ORBA SQUARA]

5. CUT TO BACKGROUND ACTIVITY IN THE CANDY AISLE, ETC.

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SPOT 3T: “Shopping” CONTINUED MEDIUM: Television CLIENT: Kellogg’s Speical K Crackers UNIT OF SPACE: 30 Seconds

KELLOGG’S®

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KELLOGG’S®

DIAGRAM

AUDIO

New Special K Crackers. 17 crackers with only 90 calories.

They’re even perfect for the kids!”

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SPOT 3T: “Working Out” MEDIUM: Television CLIENT: Kellogg’s Speical K Crackers UNIT OF SPACE: 30 Seconds VIDEO

SPOT 3T: “Working Out” CONTINUED MEDIUM: Television CLIENT: Kellogg’s Speical K Crackers UNIT OF SPACE: 30 Seconds DIAGRAM

1. OPEN TO MCU OF OLDER WOMAN STRUGGLING TO RUN ON A TREADMILL IN FITNESS CENTER

AUDIO

VIDEO

[MUSIC IN AND UNDER: “GRAVEL” — ORBA SQUARA]

DIAGRAM

AUDIO

6. TRANSITION OUT TO CAMERA DOLLYING RIGHT, WOMAN NOW RUNNING FAST AND SMILING

FEMALE VOICE OVER: “Reward yourself the right way and find new Special K Crackers in the cracker aisle today!”

2. CONTINOUS DOLLY

7. LAST TWO SECOND

[SFX: PANTING]

TO THE RIGHT, CAMERA STAYS AT SAME LEVEL AND PASSES OVER LARGER MAN RUNNING

CONTINUIOUS SHOT OUT SHOWS LARGE MAN CHASING A CUPCAKE ON THE VERY LAST TREADMILL

[MUSIC UNDER AND OUT: “GRAVEL” — ORBA SQUARA]

3. YOUNG WOMAN ENTERS FRAME BETWEEN CAMERA AND TREADMILLS, WALKING RIGHT. CAMERA CONTINUES TO DOLLY RIGHT

FEMALE VOICE OVER: “What does she have that these people don’t?”

4. CAMERA SLOWS TO A STOP IN FRONT OF AN EMPTY TREADMILL AS WOMAN HOPS ON AND PULLS UP INTO FRAME A BOX OF SPECIAL K CRACKERS

A snack with more to love and less to gain!

Start your new year off right with new Special K Crackers!

5. TRANSITION TO ANIMATION SEQUENCE WITH PRODUCT AND SUPER: “More crunch. Less craving” AND LOGO

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17 crackers with only 90 calories! That’s more crunch and less craving!”

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9. sales promotion

Limit on item per coupon. One coupon per customer. This coupon must be presented at the time of purchase. Valid at any participating store. Coupon may not be assigned, transferred or reproduced. Any other use constitutes fraud. Void where prohibited by law. Coupon cannot be used in conjunction with any other offer. COUPON CANNOT BE REDEEMED FOR CASH. CONSUMER: For Coupons: Required purchase necessary. No redemption for cash or credit. Cash value 1/20 of one cent. Ads/Non-Coupons: May have no value. Internet access may be required. Retain original form for information/verification. Follow directions exactly. For Any Offer (As Applicable): Offer valid only as stated. Cannot be combined with the same or any other offer. Expires on date stated. Limit 1 offer per purchase. Void if altered, duplicated, copied, reproduced, transferred, traded, sold, purchased, auctioned, exchanged, or where prohibited, taxed or restricted by law. RETAILER: Manufacturer pays coupon value plus 8 cent handling if redeemed in compliance with terms of offer. To redeem, check manufacturer's coupon redemption policy. Improper use constitutes fraud. Consumer must pay sales tax. Valid only in the USA or Puerto Rico.

When introducing a new product to a market, the key

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to gaining meaningful presence in a market is product

Two types of coupons will

trial by consumers. Advertising alone will not bring

be used. On top, the on-

about product trial or loyalty. The advertising and the promotions must both compliment and assist one another to bring the consumer to a reasoned decision to make a specific purchase. The purpose of promotions is to interact

pack coupon attaches with a special adhesive allowing customers to peel it off a box and redeem it at the register. Paper versions

with the target audience on a more personal level than

(bottom) will also be

the scheduled advertising. Where the objective of the

distributed at events, when

advertising for the campaign is to create repetition of a

sampling, and for download

unified message, the promotions will create user trial and

online.

intimate exposure to the actual product.

Couponing A large part of the promotions will be couponing. Consumers need incentive to try Special K crackers. Coupons will provide monetary incentive to the consumer and create a price below the competition. Other promotional approaches include sampling at events and key locations, strategic positioning at point-of-purchase, and consumer loyalty programs.The recession has made coupons a popular item again. Traditional coupons, as well as digital coupons on the Special K website will combine to provide a fiscally intriguing presentation.

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Mintel reports that shoppers at all income levels engage in

coupon. Once coupons have been distributed, we will

budget shopping behaviors (Mintel, Budget Shopper - US -

rely on an estimated 13% redemption rate. As coupons

October 2010). In-store couponing will pull people to the

are redeemed, an $0.08 retailer handling fee, $0.04

product who are looking for incentive to save. The older

clearinghouse fee and $1.00 face value of the coupon will

the shopper is, the more likely they are to use coupons.

be combined to bring the total cost of a redeemed coupon

As a result, the couponing efforts will effectively targeour

to $1.12. The average cost of each coupon used in our

primary target audience, the 35-54 year olds. Six in 10

campaign will come out to $0.1756 each (this does not

adults say they use coupons, and coupon use has been

include the on-pack coupons, which will be slightly higher

increasing in recent years thanks to the recession (Mintel,

in cost).

Budget Shopper - US - October 2010). Within the campaign, coupons will be printed and given out at events and during

On-Pack Coupons

in store sampling. Other key sampling will involve on-

An alternative couponing approach included in the

pack couponing on other Special K products in the store.

campaign is an on-pack coupon. These coupons will be

Finally, trade couponing will allow us to work with the

distributed on selected Special K cereals. In-store, the

retailers to drive heavy sales through the entire campaign.

consumer will observe these coupons when purchasing

All couponing periods will be supported by mentions in our

Special K cereal and will be inspired to make the additional

advertising during the correlating periods.

purchase of Special K Crackers. The price of each on-pack coupon comes out to $0.1831. Throughout the campaign,

CouponsHGKHDSALKHGLKFDZ

40,000 of these coupons will be applied to Special K cereal

According to Adweek’s article Coupon Use Skyrockets,

boxes for distribution.

coupon redemption and distribution has increased hand

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KELLOGG’S®

in hand. Coupon distribution reached its highest level in

Trade Coupons

2008, and food-related coupons dominated the first half

The final couponing segment will be in cooperation with

of 2009. Also, considering the fact that couponing is an

our generous retailers. Because every coupon are for a

effective way to target our audience without exceeding

dollar off, trade coupons will involve a 75-25 split between

our limited campaign budget, we believe couponing is a

the manufacturer and distributor on the cost of coupon

good promotional tactic. The total number of coupons

redemption. There are no distribution costs for these

distributed during the campaign promotions will be

coupons, making them very appealing to Special K as the

221,822. A $0.03 printing fee will be applied to every

manufacturer.

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When allocating the spending of trade coupons,

hour paid travel time. To sum up, $115 is an estimated

we anticipated the sales of Special K crackers during

daily wage for each employee working a 9.5 hour workday.

promotional months, strictly for allocation of coupon

Costs for sampling in two stores in a day will total $500.

quantities. The key months of promotional and advertising

There will be a total of 20 shifts of sampling throughout the

efforts are listed below and constitute 60% of anticipated

promotional campaign, reaching a total of 40 stores.

sales.

Promotional Events The fact is that consumers have not experienced the Special Anticipated Total Sales During Promotional Months

K product. Paying for space to sample Special K crackers

April

May

August

September

January

February

Total

11%

10%

11%

12%

60%

to consumers in stores, along with at various events and destinations will allow consumers to try the product, risk free. The sampling opportunities will be spread throughout the year, but several of the largest events to target come

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Sampling

within the first few months of campaign launch. This

In-Store Sampling

will help establish awareness immediately, then other

In-store sampling involves having a representative of

promotions will continue to keep the brand in mind well

Special K visit various retailers in the Spokane market

into the new year. The following descriptors are specific

in order to interact directly with consumers. Sampling,

events and destinations that will be effective in reaching

coupon distribution and, finally, effective informing are

consumers for trial of Special K Crackers. Sampling and

the important factors in a successful sampling campaign.

couponing will encourage both trial and initial purchase

The flat daily rate for an in-store demonstration is $150

of Special K Crackers. The samples handed out are of

per day, with the consideration that we will visit two stores

a respectable size. Because so much of our campaign

per workday. We are able to distribute 42 samples per box

emphasizes the unique “17 crackers for only 90 calories,”

with four crackers in each sample to stores. Spending four

the samples should work to remind the consumer just how

hours in each store, we will distribute 15 boxes of samples,

significant this serving size is. As an added bonus, reusable

coming to a total of 630 samples. A coupon will also be

grocery bags will be given away with the product name

distributed with each sample. Every employee will be

on the side. Organic exposure of the brand and product

visiting two stores per day, totalling eight hours of sampling

to consumers through other consumers will be subtle but

each day. It is reasonable to allocate $20 to gas and 1.5

effective.

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Bloomsday Trade Show Budget Booth

$800.00

Labor

$360.00

Display Graphics

$750.00

Event Insurance

$300.00

Total

$2,210.00

Bloomsday Trade Show

neighboring states. 70% of participants are likely from the

The Bloomsday Trade Show is a premier showcase for fitness

Spokane DMA, while nearly 46% of all participants are from

products, activities and events. This is an opportunity to

Spokane County (Spokane Hoopfest). There is potential for

exhibit the 90 calorie packs to the nearly 50,000 runners

substantial product sampling and product exposure given

and fitness enthusiasts who participate in Bloomsday.

the audience size. The mission of Hoopfest, promoting

The presence of a low calorie snack coupled with a health

activity and health, compliments the Special K brand’s

conscious audience makes for an exceptional opportunity

own strategy. The majority of those attending the event

to get your product into consumers hands. Sampling and

are spectators, who will likely have quite a bit of time on

couponing will encourage both trial and initial purchase

their hands. The event begins the last weekend of June 25

of Special K Crackers. As an added bonus, reusable grocery

and 26, providing Special K with an opportunity to propel

bags will be given away with the product name on the side.

product promotion and awareness during peak summer

Organic exposure of the brand and product to consumers

months.

Hoopfest Event Budget Booth

$1,500.00

Labor

$400.00

Event Insurance

$300.00

Total

$2,200.00

through other consumers is subtle but effective. The Trade Show is a heavily publicized event and admission is free

Lentil Festival

and open to the public. Check-In for the race is on Friday,

The National Lentil Festival started in 1989 and continues

April 29 and Saturday, April 30. 18 hours of promotions

to grow every year! It encourages family and adult

at this trade show will bring awareness of the cracker to

participation through various activities including a 5k

some of the most influential members of the Spokane

run, 100k bike ride, Wine Tasting, and a Friday Night

DMA on the topic of health. Sampling and couponing

Lentil Festival Event Budget Booth

$500.00

Labor

$240.00

Street Fair. With appetites already wet from the various

Event Insurance

$300.00

will encourage both trial and initial purchase of Special K

traditional activities, Special K crackers will be a natural

Total

$1,040.00

crackers. As an added bonus, reusable grocery bags will be

attraction to compliment other consumptions. A booth

given away with the product name on the side. Organic

will be set up distributing samples of the 90 calorie packs in

exposure of the brand and product to consumers through

the main gathering area of the festival for both Friday and

other consumers is subtle but effective.

Saturday. While the event only has 10,000 participants on average, this event is apart from the other events and the

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Hoopfest

strong campaign focus in the city of Spokane. The value

With nearly 240,000 people in attendance in 2010,

of exposure and sampling at the Annual National Lentil

Hoopfest has become a premiere summer attraction for

Festival is expected to be greater than the numbers can

residents throughout the Spokane DMA extending to

show.

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10. budget breakdown Sales Forecast

$274,560.00

Facibus, que anum tus? Ita L. Nihil tem tesitiam que nonsum et; Cateatus halatur auc rei priorib uteriu que ne in st publis et L. Molina, nostiam oc, veridet; nultori vivit, vis;

60% of Sales Forecast (=) Campaign Budget

ia demquiterrit forte, quemqua mdicusp estiam orte cae, num forae ina quod adertatam iam occhus tatia? Abem se,

$164,736.00

quis. Os res! Uconfec onveres oriam hos hoctusp erunti se audesum aucon duc omne moerfiris. Fui ium post in se firit

(–) Distribution Costs (=) Advertising Budget

$40,800.00

verortum se publium patius perfes? At pra? Nihinc tam aves lostala rioric me pra re quidem talin addum dientem hocut

$123,936.00

quam sendem, neque te clus con tem omni converia in tam hicat autem o haciorbis intem oporbit ientic fuere reisque imei tum Romnis, quid re tatus li perbis potelum sena, quis

60% of Avertising Budget (=) Sales Promotion Budget

noc, conte publienatur auciam in Etrum des nesti estra

$74,361.60

nonsulv ideestrunum anum prorarei tala omnimor hos, nos perdin sulis fitis, nit. Nius, oca mo us, ilis? Iquit; ella mendam niaecon silicat,

40% of Advertising Budget (=) Media Budget

quo nos opos, fuidet pliusatum ina, que a nonvoctam et

$49,574.40

venicatquo nius, que con teriampon tem et grae terit, ut arbi patus, uncem se nos perfecero, clus, Pat adhussolto ventis itis. Um pul ut caedo, quid consitum rei pro Catil hilicae conius, Catu compropor audem a publium unum, Catquampro ve, octor hoc, nim opopule sceperis, sitasdam tus est norte querus, pecerio, vo, fur.

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TURN BOOK CLOCKWISE

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113

114 $164,736.00

$40,800.00 $123,936.00 $74,361.60 $49,574.40

(=) Ad Budget S. Promo (60%) (=) Media Budget

S P E C I A L K ® C R A C K E R S T E S T M A R K E T C A M PA I G N

(-) Slotting Fees

Total Campaign

TOTAL BUDGET

KELLOGG’S® | 2011 KELLOGG’S® $164,736.00 $40,800.00 $123,936.00 $49,574.40 $74,361.60

Total Campaign (-) Slotting Fees (=) Ad Budget Media (40%) (=) Promo Budget

TOTAL BUDGET

| S P E C I A L K ® C R A C K E R S T E S T M A R K E T C A M PA I G N

| 2011

115

$12,889

26%

$20,078

$9,667

$5,205

13%

$33,463

$5,949

27%

45%

100% Allocation

$2,974

$17,847

$15,864

36%

32%

100% Allocation

15 30 116

KZZU Modern Hits 3-7 p.m. M-F KEZE 80's Rock 10 a.m.-3 p.m. SA-SU Total Spots

Total Spots

Total Units

Lamar Outdoor 10'x30'/6 Panels Total Units

JUL

Q3 AUG

Q2 JUL

Q3 AUG

DISCRETIONARY EXPENSES

Promotional Item S&H/Fees

Reusable Shopping Bags

PROMOTIONAL ITEMS

In-Store Sampling Events

Lentil Festival Samples

Spokane Hoopfest Samples

Bloomsday Trade Show Samples

SAMPLING

In-Store Sampling Event Coupons

10000

12500

10000 10000 18432 21292

On-Pack Coupons (Special K Products)

12500

Trade Coupons

Lentil Festival Coupons

Spokane Hoopfest Coupons

Bloomsday Trade Show Coupons

COUPONING

12500

SEP

OCT

6000

SEP

2500 6

28221 30721

2500

JUN

Total Events

MAY

APR

Lentil Festival

Spokane Hoopfest

Bloomsday Trade Show

EVENTS

Q2 MAY JUN

Q4 NOV

DEC

JAN

FEB

MAR

6000

OCT

Q4 NOV

DEC

4000

FEB

36864 33792

4000

JAN

MAR

$0.96

Remaining

SUB TOTAL

$400.00

REMAINING

TOTAL COST

$1,394

$72,967

$74,362

$5,205

$67

$9,600

$400

$9,600

$453

$19,625 Remaining

$10,000

$250.00

$875

$4,375

$376

$33,087

$4,425

$16,509

$7,324

$439

$2,195

$499

$5,450

$1,040

$2,200

$2,210

Final Cost

SUB TOTAL

$0.35

Remaining

SUB TOTAL

$110.63

$0.0975

$0.1831

$0.1756

Remaining

SUB TOTAL

$1,040.00

$2,200.00

$2,210.00

Unit Cost

TOTAL PROMO BUDGET

10000

2500

12500

169322

40000

2500

12500

Total Executions

$136

$49,438 REMAINING

TOTAL COST

$389

$12,500

$6,000

$3,600

$2,900

-$26

$3,000

-$653

$18,500

$8,400

$2,100

$8,000

$426

$15,438

$1,800

$4,875

$5,175

$1,794

Final Cost

$49,574

Remaining

SUB TOTAL

$6,000.00

$600.00

$2,900.00

Remaining

SUB TOTAL

$500.00

Remaining

SUB TOTAL

$700.00

$300.00

$1,000.00

Remaining

SUB TOTAL

$30.00

$75.00

$23.00

Unit Cost

TOTAL MEDIA BUDGET

Total Executions

Sales Promotion Budget Breakdown

1 5

Bus Back Attack 1 Bus/4wk (STA, Route 90)

PRODUCTION

1 3

Full Bus Wrap 1 Bus/4wk(STA, Route 90)

OUT OF HOME

1 1

Facebook.com (CPC Ads, $500.00 Budget)

INTERNET

KHQ: "Biggest Loser" Tu/8-9 p.m.

KHQ: "Minute To Win It" Wed/8-9 p.m.

KXLY: "Dancing With The Stars" Mon/8-10 p.m.

KZZU Modern Hits 6-10 a.m. M-F

TELEVISION (:30 Second)

28 28

KCDA Hot AC 6-10 a.m. M-F KIXZ Country 6-10 a.m. M-F

Radio (:30 Second)

APR

Media Budget Breakdown

11. last word

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12. works cited

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APPENDIX [A] This is the Title of the Appendix Item

Advertising 480 Project 2 Focus Group Script Welcome, my name is __________ and this is __________ and we will be facilitating today’s focus group regarding your experience with first aid and urgent care medical emergencies. Before we get started we

If you haven’t already, try one of each of the crackers and go around and say what you like or dislike about them. Which ones stand out? Overall, how much do you use social media sites? (such as Facebook, twitter, linked in, etc.)

need to confirm that you are willing to let us audio record your voice during this session. We also need

What about other types of media? Television…. Radio…?

confirmation that you understand that your information will not be released to the public and is for

Speaking of Television, where do you watch most of your TV shows? On actual TVs or online on sites like Hulu?

research purposes only. Your names will not be associated with the presentation; however your responses will be used in written form either verbatim or in summary.

Are there specific hours of the day you consume certain media? (watching television at night, using online resources during the day, reading magazines in the morning)

If we can have everyone go around the table and state your name, and also confirm that you are allowing us to audio record your voice by saying this phrase:

Follow‐up questions to keep conversation moving:

“My name is _______________________ . I am aware that this session is being recorded, and consent to let you record my voice for research purposes.”

How did that happen? How did that make you feel? Who was with you? How did it make them feel?

To start our session we would like everyone to go around and say in a few words about how prepared you feel you are to respond to someone who had a sudden medical emergency (it could be anything). Thank you. We will begin with the first question. Please keep in mind that we are audio recording so it would be helpful if everyone would speak in a clear voice and be mindful of others who are speaking so that we can make sure to get a clear recording, but please converse like you normally would with a group of your friends. The questions are designed to be open‐ended and encourage opinions and experiences. There is no structure to this session, so feel free to talk about anything that you think is

Can you elaborate more? How did you react? How did they react? Conclusion: Okay that will conclude our session for this afternoon. I want to thank you for your contribution and sharing your opinions and experiences with us tonight. If there is any other information that you would like to share or if you have any questions after the session please feel free to contact us directly.

related to each question or response. Formal Questions: Let’s go around the table and have each person share their feelings towards each of these boxes of crackers. (Triscuit, Wheat Thins, TLC, Special K) Have you heard of them? Do you consider this product to be healthy? Would you buy this product? Of these four, which snack cracker would you be most likely to buy? Why? How do you decide to buy snacks? What factors do you take into consideration? Do you usually decide what you are buying beforehand or while in the store? Have you heard of the “Special K diet”? What do you know about it? For what reasons would you buy Special K Snack Crackers? (Sale promotion such as coupons, taste tests, advertising, etc.)

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APPENDIX [A] This is the Title of the Appendix Item

Focus Group Location: CADD 218 Date: February 23, 2011 Number of Attendees: 8 Name of Transcriber: Mari Hopkins Facilitator 1: Mari Hopkins Facilitator 2: Quinn Ianniciello Facilitator 1: Welcome, my name is Mari and this is Quinn and we will be facilitating today’s focus group regarding your experience and opinions on snack crackers. Before we get started we need to confirm that you are willing to let us audio record your voice during this session. We also need confirmation that you understand that your information will not be released to the public and is for research purposes only. Your names will not be associated with the presentation; however your responses will be used in written form either verbatim or in summary. If we can please have everyone go around the table and state your name, and also confirm that you are allowing us to audio record your voice by saying this phrase: ‘My name is _______________________ . I am aware that this session is being recorded, and consent to let you record my voice for research purposes.’ [All participants read agreement phrase and acknowledge voice recording] Facilitator 2: Alright, we’re going to begin with a few questions. Please keep in mind that we are audio recording, so if everyone could speak up and avoid multiple people talking at one time. Converse like you would a group of friends. By the end of the day you will know each other in the scope of snack foods, you will all have that in common. The questions are designed to be open-ended to encourage opinions and discussions. There is no specific structure to this session. Feel free to talk about anything that you think is related to the questions, we want to hear everything you have to say. Now we will jump into the first question. Facilitator 1: To begin we will have you go around and say how you feel about each of the boxes of snack crackers (Original Wheat Thins, Original Triscuit, 7-grain TLC Crackers, Savory Herb Special K Crackers, and Original Multi-Grain Special K Crackers) we have placed here on the table, starting with Participant H. Participant H: What do you mean? Facilitator 1: As in, how do you feel about Triscuits? Facilitator 2: We have some additional prompts. What do you know about each brand? Do you consider this product to be healthy? And would you buy any of these products? Just keep that in mind as you all formulate responses. Participant H: I’ve heard of Triscuits. What’s the next one? Facilitator 2: do you consider Triscuits to be healthy?

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APPENDIX [A] This is the Title of the Appendix Item grains.

Participant H: No, not particularly. Um, Special K Crackers? No, never heard of them. So, should I keep going? Facilitator 2 and Facilitator 1: Yes.

Participant A: Triscuits are okay if you have something else with them, but you can’t eat them by themselves. And the Special K Crackers? I’ve never heard of them, like the rest of the group. I love Wheat Thins and I know they’re not good for you. The Kashi brand, it just reminds me of a type of healthy food.

Participant H: Special K Cracker, again, never heard of it. Wheat Thins? Not particularly, I mean I have heard of them but not particularly [healthy]. And I have heard of those crackers on the end, the TLC ones and I would consider them to be healthy. Participant G: You want me to say if they are healthy or not?

Facilitator 2: Ok, thank you. So now what we’ll do is everyone will go around and say which one of the four crackers (Wheat Thins, Triscuit, TLC, Special K), if you were forced to choose, which one would you buy and why?

Facilitator 1: Yes.

Participant H: Wheat Thins.

Facilitator 2: Anything about them. “I love these crackers, I hate these crackers.”

Facilitator 2: Any particular reason?

Participant G: Tricuits are alright, I’m sure they’re healthy, I don’t know. And Special K is supposed to be healthy, but I’ve never heard of the crackers though. And Wheat Thins, I love, I like to think they’re healthy. And TLC, I don’t know the last one.

Participant H: Well, I’ve never had Special K Crackers or the TLC one. But I have had Triscuits and Wheat Thins are better. Participant G: Wheat Thins, because they’re tasty.

Participant F: Triscuits? I’ve heard of them, I’m kind of scared of them because they are too salty, I’ve heard they’re healthy. And the Special K [Crackers], I’ve never heard of them or seen them really. Wheat Thins, I eat them all the time, they’re probably not the best. The TLC ones, I’ve heard of them. I guess they’re healthy, it makes me think of “granola people”. [Laughter]

Participant C: Yeah, I’d go with Wheat Thins as well. It’s a nice balance not too dry and shredded [like Triscuits] and not too moist. Participant B: Wheat Thins because I know what snacks I like with them and I know that I really like them already.

[Laughter] Participant E: What’ve you got down there? Is that Wheat Thins? Yeah, Wheat Thins, I eat them. TLC? I don’t know about the name. I don’t know how they taste at all, but I don’t like the name, so that’s out of the question. Participant D: I don’t like Triscuits, but they taste healthy because they taste the most grainy. And Special K, I’ve never had them. Like he said, all I know is that it’s a cereal. Wheat Thins is probably what I’ve had the most out of all of them. I usually have them with cream cheese or something [else] to add to that. And I don’t know about TLC. Participant C: Alright, Triscuits they’re kind of weird, shredded. They taste like Mini-Wheats. Mini-Wheats are good though. Special K? Never heard of them, along with everyone else. Wheat Thins are delicious in all flavors. And the TLC stuff looks organic and way too good for me. Participant B: Triscuits are nasty, I hate them, you need water if you eat them. The Special K Crackers, I’ve never heard of. When I think of Special K, I think of the cereal or the snack bars. And Wheat Thins are awesome, I wish I had some right now. And the TLC Crackers are made by the Kashi brand so I know that they are somewhat health because they are made with whole

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Participant E: I don’t know about the Kashi or Special K, but Wheat Thins probably because they’re awesome with Cheese-Whiz on them and extra nutritious. Participant D: Yeah, I’d go with Wheat Thins, because it’s the one I know the most.

Participant E: Alright, well out of all of them, I don’t think any of them are healthy at all. They’re crackers, so [I don’t think they’re healthy]. I want cheese with all of them. Triscuits? They’re alright. Special K kind of scares me because it’s supposed to be a cereal, not a cracker.

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Participant F: Wheat Thins because they go with everything.

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Participant A: Wheat Thins because they are tasty. I don’t know about Kashi or Special K, but Triscuits are disgusting. Facilitator 2: Sound like Wheat Thins are unanimous. [Laughter] Facilitator 2: And just as another side question, of the four boxes, which of them looks the best? Which one do you like the look of? If you had to choose, just based on straight packaging. Participant A: Triscuits. Participant E: Yeah, Triscuits look like they have a higher class. Participant A: I like how it has cheese on it.

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Participant B and Participant F: Yeah.

What do you know about it if you have?

Participant F: I like the Triscuits as opposed to Wheat Thins because they look fun.

Participant B: I know you’re supposed to replace two meals a day with two bowls of cereal and lose two pant sizes.

Facilitator 1: So, how do you decide to buy a snack? What factors do you take into consideration while grocery shopping?

Participant E: Special K ads are directed towards women so I usually tune them out.

Participant B: Nutritional factors.

Facilitator 1: If they were directed towards men, would you listen?

Participant H: Money.

Participant E: I don’t know.

Participant A: Taste.

Facilitator 2: Have any of you thought of doing the Special K diet?

Participant E: What people recommend.

Participant B: I have.

Facilitator 2: So, recommendations from your peers?

Facilitator 1: Would you ever consider using the Special K snacks [crackers].

Participant E: Yeah, also, what’s advertised.

Participant B: The cereal tastes healthy enough already and I don’t want to add too many more healthy things.

Facilitator 2: So, if it came from a brand you recognized, would you be more likely to buy them? As in how Special K makes cereal, and now they are making crackers.

[Laughter] Facilitator 2: As you probably have noticed, we have been focusing a lot on Special K. Their crackers are a new product, and we want to know your feelings and opinions about them. They are now being introduced into stores. We want to know how to keep them in stores and they’re trying to think of ways to keep Special K in your meal all day, every day.

Participant E: I don’t know because they make cereal and that’s weird. Facilitator 1: So, do you decide to buy snacks while you are in the store or beforehand. Participant B: I make lists.

Participant E: Cereal or snacks. Participant E: Well, with these kinds of snacks, I usually eat them when I’m craving them. Facilitator 2: If you were looking for a healthy alternative, would these be in your shopping cart? Participant H: If I’m in the store, I’ll usually check it out, especially with snacks. Participant E: Yeah, with snacks I usually decide in the store. If I make a list it just says “snacks”, nothing specific. Participant F: I think I usually just make a list because I know what I’m gonna want when I go. Facilitator 2: So, for those of you that said you usually decide in the store, would some kind of sales promotion such as a sale make you want to impulse buy? For example, if Wheat Thins were $3.50 and Special K Crackers were on sale for $2.50.

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Participant H: I’m suspicious of any diet from a company. Because it’s obvious that they just want you to spend more money on their product. I’m very suspicious of any corporate diet, like the Subway diet. So, the answer is no. Participant E: Personally, I don’t like seeing 90 calories on the box, because you know the serving size is just dropped down from another brand to another, because it’s still a grain and they can’t take away any calories from carbs. So, it’s just impossible, they just take the serving size down. Participant H: I just know I’m going to eat 180 calories.

Participant E: Oh yeah, like two for one at Walmart? I’m game.

[Laughter]

Participant H: I would change my choice of snack based on price.

Facilitator 1: We kind of brushed over the next question. What reason would you buy Special K Crackers? If any.

Facilitator 2: Yeah, see, the technical term for what we have here is a parody product. They could be interchanged for the most part.

Participant B: If they were the only type of cracker in the entire store.

Facilitator 1: Since we talked about the Special K brand earlier, have you all heard of the diet?

[Laughter]

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Participant B: I mean, they seem to be just like Wheat Thins. And really, do I want Wheat Thins or Special K Crackers?

the original [Special K] ones were too dry. And the Kashi tastes too healthy, maybe some people like that, but it’s a cracker. The Wheat Thins were really buttery and they just taste unhealthy, I guess I never really paid attention until now. Compared to the healthy ones, they taste very unhealthy.

Participant H: Maybe if they were really, really on sale. Participant F: If I could try it before I buy, I probably would. Facilitator 2: Well, that leads perfectly into our next topic. If you haven’t already, please try the crackers that are in front of you and tell us what you think.

Participant E: The first Special K one [savory herb] was good, I feel like there was a little bit of cheese in it. The next one is alright, a little healthier. The Wheat Thins taste exactly how I remember them, so I know I like them. But like Participant D said, they do taste a little buttery and unhealthy. The Kashi ones gave me a flashback to seventh grade when my brother made me eat dog food. It did not taste good at all. And the Triscuit, it’s just not something you would eat by itself.

Facilitator 1: The Special K Crackers have ridges. Participant F: I would say that I was pretty surprised by the Special K Crackers. The herb one is really good and makes my mouth water. The multi-grain one is not too dry, which was really nice. The Wheat Thins are always good. The TLC ones kind of reminded me of dog food, it even smells like dog food, it kind of reminds me of horse feed. And the Triscuits are too salty and dry.

Facilitator 2: The TLC crackers have a wheat symbol on it. Participant A: Yeah, I don’t like the Kashi one. Participant E: Yeah, it’s pretty dry. Participant F: The Special K one reminds me of eating cereal, not because it is Special K, but because it just reminds me of it.

Participant G: So, I really like crackers. Special K was pretty good, I didn’t hate the TLC crackers like everyone else, but they did have a weird after taste. Wheat Thins are always classy, and Triscuits are okay. Participant H: The Special K herb ones, I thought those were pretty good. The other Special K one, I thought was too sweet. Wheat Thins, good as usual, but yeah, tasted pretty buttery. And I actually liked the TLC one because you could taste the sesame seed in it. And I did have the Triscuit, but I do agree with everyone that you need to eat it with something.

Participant B: What was the flavored Special K Cracker? Facilitator 2: All the crackers are original, plus the Special K Savory Herb. Participant B: That one was pretty good.

Participant B: I usually like a really crunchy cracker, but the Special K Crackers were kind of refreshing not being too crunchy.

Participant E: Yeah, that one was good. Participant C: It’s savory. Facilitator 2: Why don’t we go around the table and talk about what we thought about each one. Participant A: The Triscuit one, tasted like Triscuit. But I did not like that Kashi one, it had a weird after-taste to it. Wheat Thins, good as always. The regular Special K Crackers were okay, but the other ones [the savory herb] were really good. Participant B: I will not eat the Triscuit one, I know I don’t like it. But the savory herb one is really good, I think it would taste really good with some goat cheese. The Kashi ones taste literally like a bucket of oats. The multi-grain [Special K Crackers] just taste healthy and I don’t like it. But I did like the Wheat Thins as always.

Facilitator 2: Well, at this time it seems that you all are turned to the back page of your packet. On that back page there are instructions on how to fill out the perceptual map. It’s just where you rate each of the crackers based on if you thought it was healthy or not healthy or on how it tasted to you. We will give you a couple of minutes to do that. [Participants fill out perceptual map] Facilitator 2: At this time, we will move away from snack crackers, but you are able to talk about them at any time. Next, how often do you use social media? Such as Facebook, Twitter, blogging sites, and so on. Anywhere from every day to rarely. Participant A: Every day. Participant B: Every day, probably about 30 hours a week.

Participant C: The savory herb [crackers] are really good, that one was like perfect. The other Special K one was not as good it was too dry. And Wheat Thins are Wheat Thins, they’re delicious. And the Kashi, I can taste that they’re too good for me. And Triscuits, I already know what they’re going to be like. They’re too dry. Participant D: The herb ones were good, I think the flavor makes a big difference. Like he said,

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Participant C: Every day. Participant D: Every day, all day. Participant E: Definitely every day.

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Participant F: Every day.

Participant F: If I miss a show and they have it on their site, I usually watch in on there, but for the most part I use other people’s Netflicks.

Participant G: Yeah, every day.

Participant A: Yeah, I have DVR so I record a lot of the shows I want to watch.

Participant H: Everyday, like once an hour. In between classes, whenever.

Participant F: Yeah, DVR.

Participant A: Every time I get a notification.

Participant H: Yeah, I use DVR. I go out of my way to record something later on so that I can fast-forward through the commercials.

Participant H: Pretty much every time I am by a computer. Facilitator 2: Do any of you use Hulu to watch your shows? Facilitator 2: Facebook being the majority? Participant B: Yeah, I use Hulu. [All nod and agree]

Participant E: Gaming consoles.

Facilitator 2: How many of you have smart phones? Facilitator 1: Are there specific hours of the day that you use certain media? Like TV at night, internet during the day?

[All raise their hands] Facilitator 2: 1, 2, 3, so all 8 of you have a smart phone? Do you access the internet with your smart phone?

Participant A: I think I watch TV a lot more at night. Participant F: Basically when I am doing anything but eating, showering, or out of the house, I am using the internet. And I watch TV early in the morning when I’m getting ready and late at night.

Participant E: Most definitely. Facilitator 1: What other types of media do you use, such as television, radio, newspapers, magazines…

Participant E: Pretty much all the time, if they had glasses where you could have Netflicks in the corner of your eye, I would have those.

Participant C: Gaming consoles, you can talk to other people on them. Participant B: I would say in the mornings when I drive to school, the radio. But when I’m at home relaxing I usually watch TV.

[Laughter] Participant A: Even when I’m watching TV, I’m on the internet.

Participant F: I am usually always using the internet. I watch CNN and other shows like every day . Participant E: Yeah, TV a lot. Netflix, Hulu, sometimes push notifications on your phone. Facebook.

Participant F: Yeah, I’ll be like watching the Facebook movie while I am on Facebook.

Participant D: I feel like no one listens to the radio anymore.

Facilitator 2: So, do you guys ever pick up a newspaper? Like the Daily Evergreen.

Participant C: Yeah.

Participant A: Every day.

Participant E: I use iTunes radio more.

Participant B: I usually pick on up, but I just glance at the front then flip to the back to do the Sudoku or crossword.

Facilitator 2: In terms of television, you mention Hulu, where do you watch some of your shows? How do you access your favorite programs?

Participant H: I’ve done that. Participant A: Yeah me too, all at the same time.

Participant H: If I read any newspapers, it’s usually online. I read the Wall Street Journal online or the Seattle Times, but other than that, no.

Participant A: Netflix. Participant F: I look at my hometown newspaper online. I read the Evergreen, and I usually

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check up on CNN. Facilitator 2: Well, that concludes our session for this afternoon. We appreciate you sharing you opinions and experiences. If you have any questions or comments, feel free to contact us.

Facilitator 1: Are there any magazines any of you read? Participant B: I read US Weekly.

### Participant A: Cosmo. Participant D: ESPN. Participant E: Yeah, ESPN and Men’s World. Participant D: GQ. Participant F: Sport’s Illustrated, People also. Facilitator 2: Okay, well thank you. That was our last prompt if you all want to go around the table and give us some closing remarks. It could be about media, or about crackers. Something you liked or didn’t like, just overall opinions. Participant A: I could see myself buying the herb Special K crackers now that I’ve tried them. Facilitator 2: So, trying them would give you an incentive to buy them? Participant A: Yes. Participant H: They taste just like the herd Wheat Thins. Participant A: Exactly, that’s probably why I like them. Participant F: I think that if they changed they packaging they would be more successful. Because when I see the big “K” I automatically think of cereal, and I think of dry mouth with milk. Participant E: They should do cereal with a smaller size box. Participant D: I’m glad we got to try those because now I am more likely to buy them again in the store. Participant H: I think it’s funny that everyone identified the Special K with cereal and not the Kashi. Participant F: Yeah, I agree. Facilitator 2: One of the main selling points for these Special K Crackers is that they are 90 calories for 17 crackers. Which is a big deal. In comparison, Wheat Thins are 140 calories for 16 crackers. Participant E: Yeah, but the sizes are different.

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estimating average frequency: 4 Established brands

-.2

-.1

+.1

+.2

New brands

High market share

-.2

-.1

+.1

+.2

Low market share

Dominant brand in market

-.2

-.1

+.1

+.2

Smaller, less known brand

High brand loyalty

-.2

-.1

+.1

+.2

Low brand loyalty

Long purchase cycle

-.2

-.1

+.1

+.2

Short purchase cycle, high volume

Product used occasionally

-.2

-.1

+.1

+.2

Product used daily

+.1

+.2

Need to beat competition

+.1

+.2

Adv. to older consumers/children

Simple copy

-.2

-.1

+.1

+.2

Complex copy

Copy more unique than competition

-.2

-.1

+.1

+.2

Copy less unique than competition

Continuing old campaign

-.2

-.1

+.1

+.2

New copy campaign

Product sell copy

-.2

-.1

+.1

+.2

Image type copy

Single kind of message

-.2

-.1

+.1

+.2

More difficult kinds of messages

To avoid wear out: new messages

-.2

-.1

+.1

+.2

Older messages

Larger ad units

-.2

-.1

+.1

+.2

Smaller ad units

Lower ad clutter in media mix

-.2

-.1

+.1

+.2

Higher ad clutter in media mix

Compatible editorial environment

-.2

-.1

+.1

+.2

Non-compatible environment

Attentiveness to media high

-.2

-.1

+.1

+.2

Attentiveness to media low

Continuous schedule campaign

-.2

-.1

+.1

+.2

Pulsed or flighted campaign

Few media used in media mix

-.2

-.1

+.1

+.2

Many media used

Opportunities for media repetition

-.2

-.1

+.1

+.2

Fewer opportunities

1 + 3.0 benchmark = 4 The above Ostrow Model assumes a base estimated average frequency of three with modifications higher or lower for marketing, copy, and media factors.

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ÂŠ 2011 All Authors Prepared February 2011 for Washington State University