Agency Presentation Torey Cole Sarah Freeman Nicholas Morris Betsy Sparks
PREPARED CAKES AND PIES CATEGORY: BACKGROUND INFORMATION - The prepared cakes and pies category is increasing by 17.4% - Shelf stable cakes come in least popular ($1,334) while baked in stores cakes and pies bring in $5,000 - The majority of sales for this category is through supermarkets and grocery stores - Unfortunately, consumers report that they are reading nutritional labels for RTE cakes and pies more than they were a year ago - The Hostess brand is the most expensive of the prepared cakes and pies
Y&R Brand Valuator Positioning
LEADERSHIP NICHE MARKET/ UNREALIZED POTENTIAL MATURE BRAND STRENGTH
NEW ERODED UNDEFINED
BRAND STATURE
Ding Dongs
WHY ITS MATURE: 1. Firstly, out of the 8 people we had in our focus group, only 1 found it to be her favorite cake. Many others claimed it to be “too dry” or “too marshmallowy”. Other claimed its looks to simply look unappetizing. 2. The chart on The Emporia Gazette took 6 popular Hostess snacks and surveyed anyone who came across the page. When looking at the data, one can see that Ding Dongs appeal to roughly 18.3% of surveyors. This goes to show it’s got it’s landmark, being higher than products like Fruit Pies and Zingers, but not nearly as high as products in this survey like Twinkies which held 23% of surveyors. 3. When taking into account our parent’s comments in the interviews, Ding Dongs weren’t nearly as popular as Twinkies or Cup Cakes. This is because they weren’t introduced until 1967, according to the Hostess site. The primary piece we got out of the interviews was that they were well known, just not well eaten. 4. After going to several locations, it was evident that Ding Dongs were only really popular in larger stores in the bakery isles. Gas stations rarely had them, and convenience stores were give or take. 5. Finally, the Mintel Marketing Data helps to support our position as well. When observing the chart on page 3, which compares the U.S. sales of cakes and pies vs. cupcakes and brownies, vs. shelf-stable cakes in 2011-2012, one can see that Ding Dongs would obviously fall under the Shelf-Stable category. On this chart, that category is the lowest off the three. Therefore, in comparison to things like cupcakes, it is evident that Ding Dongs are eaten less, but still have a steady position on the chart. All of these points support why it is a mature product.
LEADERSHIP NICHE MARKET/ UNREALIZED POTENTIAL MATURE BRAND STRENGTH
NEW ERODED UNDEFINED BRAND STATURE
Ho Hos
WHY ITS MATURE: 1. For one, everybody in our Focus Group found Ho Hos to be just about average. One claimed it to be her “childhood dream”, but claimed “it’s just not the same” after eating it now. The rest of the group found it to be similar in nature to the Cup Cake and Ding Dong, but claimed it looked a lot more appealing. The group seemed to convey the attitude that it was simply another alternative to those cakes. 2. In terms of our research online, it came up about average again. Established, yet simply deemed as a prettier alternative. We got our data for this simply by using Facebook’s search engine. Entering each cake, we determined how many like each one had. What we saw supported our position perfectly. Cakes like Twinkies had upwards of 130,000 likes, while cakes like Ho Hos and Ding Dongs had roughly a few thousand likes. On the bottom, Snoballs had only a thousand or so likes. 3. When taking our mother’s interviews into account, it was evident again that Ho Hos were clearly a middle ground cake. One mom claimed them to be “a fancier version of a cupcake”, and that they were nothing too special. “Just something to keep kids coming back to try alternate cakes that have the exact same batter”. 4. Ho Hos, like Ding Dongs were rarely found in any convenience or gas stores, but were always in the Bakery and Bread isles. 5. When looking at Mintel’s Marketing Data, our decision is supported as well. One could simply look at the chart on page again to see this.
LEADERSHIP NI CHE MARKET/ UNREALIZED POTENTIAL BRAND STRENGTH
MATURE NEW ERODED UNDEFINED
BRAND STATURE
Cup Cakes
WHY ITS A LEADER: 1. 6/8 people in our Focus Group claimed that Cup Cakes were their “favorite” Hostess product. This was based off of a couple main components revolving around the look and feel of the product. One claimed that it was the most bakery-esque item out of the all the products, and another claimed the swirls on top sold them, as it looked “the most put together and clean”. 2. According to research gathered from The Seattle Times, Cup Cakes were the very first cake produced by Hostess. Therefore, it is obvious to see that this is the product that started Hostess Brands. Although the creation of the Twinkie was what essentially brought the company to fame. Many people still eat the Cup Cakes today, and associate with the original Hostess cake. 3. After the interviews with our parents, we were able to find out a deeper understanding for what Cup Cakes really were. According to Mrs. Morris, Cup Cakes were an essential part of the brand. “They weren’t simply a ‘treat’- a word associated with snacks such as Sno Balls, Twinkies, and Ho Hos. They were a necessary part of the lunch that completed the meal”. 4. When observing the locations of Cup Cakes within stores, we found that Cup Cakes are present in almost every location- from food stores, to gas stations, to convenience stores. This implies there evident popularity, and shows us they are frequently bought as a snack everywhere. 5. Finally, when observing Mintel’s Marketing Data, a chart on page 7 shows the popularity of Cup Cakes in comparison to Brownies, Shelf-
LEADERSHIP NICHE MARKET/ UNREALIZED POTENTIAL MATURE BRAND STRENGTH
NEW ERODED UNDEFINED BRAND STATURE
Sno balls
WHY ITS A NICHE PRODUCT: 1. Since Sno balls weren’t incorporated into our Focus group, we decided to survey 100 people in the Center for Community, during dining hours. We simply asked them if they found coconut to be appealing on desserts. Surprisingly, only 37 out of the 100 people we interviewed claimed they did. Thus, a niche market was created. 2. After looking at a demographic survey online by SodaHead.com, it was determined that out of all of the Hostess snacks, Sno balls appealed to roughly 9% of the population. This is a small amount, but according to data that I will present later on, it is not small enough to be eroding. 3. In the instance of Mrs. Morris, we will use her as the primary speaker when it came to Sno balls. During her interview, we discovered that Snoballs were her favorite Hostess snack as a kid. So much, that she rarely ate any of the others. This example right here supports our positioning perfectly. Not being a fan of chocolate, cake, or anything else, she was able to find her perfect nicheSnoballs. 4. According to our search for products at various locations, we found Sno balls to be at hardly any gas stations, but always at convenience stores or supermarkets. This is due to the fact that these are the best places to grab a snack for the road, or to stock up, which is when something as niche as a Sno ball could come into play. People go to convenience stores for a snack, which causes many convenience stores to “test market” strange and off-beat snacks. This could be the primary reason they are able to exist in these locations. Gas stations simply aren’t in the need for them. 5. Finally, according to the Mintel Marketing Research, page 1 shows an executive summary graph of where prepared pies and cakes are going to be in the future. The chart only goes one way- up. Therefore, it is safe to conclude that as long as prepared cakes are in business, Sno balls will go up with them,
LEADERSHIP NICHE MARKET/ UNREALIZED POTENTIAL MATURE BRAND STRENGTH
NEW ERODED
UNDEFINED BRAND STATURE
Twinkies
WHY ITS A LEADER: 1. During our focus group, Twinkies were the first cake to be put out. Everyone except for one person had had a Twinkie before, but everyone knew what they were. Some of the negative comments that came up about Twinkies was about the packaging. Many girls claimed it to look “disgusting” or “gross and full of residue”. One girl remarked that it should be packaged like the Ho Hos and Ding Dongs, with the white paper instead of clear wrapping. In terms of the taste, everyone thought it was “too spongy” or “”too sweet”. Many claim they used Twinkies to try them for strange combinations, such as deep frying or other experiments. 2. According to KitchenProject.com, Twinkies are the number one best selling Hostess product. They were created in the 1930s, and became popular in the 1950s due to the Howdy Doody show. Claiming to last forever, people were sold. They were also extremely cheap, and during the Great Depression, they were perfect at a nickel for a package for 2. 3. When talking to our parents, we discovered Twinkies to be well known and popular. They were claimed to be “an interesting part of bakery culture” and a revolutionary dessert”. 4. When searching for Twinkies, we had no problems. They were literally in every store we found, and were at locations from gas stations, to convenience stores, to supermarkets. This is a strong argument for our positioning, because the fact that they are everywhere heavily supports the fact that they are indeed very popular. 5. Finally, one other source helped us confirm that Twinkies should be in the leadership sub-quadrant. After visiting the restaurant, “The Fat Shack” on the Hill, in Boulder, Colorado, we were able to interview several of the employees to get the usage statistics on “fried twinkies”. Surprisingly, they’re quite popular, popular to be the only fried Hostess product. This supports our
LEADERSHIP NICHE MARKET/ UNREALIZED POTENTIAL MATURE BRAND STRENGTH
NEW ERODED UNDEFINED
BRAND STATURE
Zingers
WHY ITS ERODED: 1. Zingers were also not included in our focus group, so we determined another way to determine their reputation amongst our peers. Each person in our group asked 5 close friends what they thought of Zingers. As it turns out, many didn’t even know what they were upon first mentioning. Others claimed them to be the “lesser known” products of Hostess, that simply add variety to the brand name. 2. After doing research on them online, they were also rarely included in surveys asking what Hostess product was people’s favorite. The fact that they aren’t even mentioned should provide a clear message- they aren’t very popular. The thing that differentiates this from Snoballs, for example, is that fact that they are very similar to Ding Dongs and Cup Cakes. There’s no need for a niche market, because there’s nothing inherently special about them. 3. According to the interviews with our mothers, they rarely bought them for their kids. Maybe every once in awhile, but for the most part, they were simply shelf candy. 4. In terms of locations, we could not find them at convenience or gas stations. They were only at supermarkets, and at that, only at the popular supermarkets. 5. Finally, Mintel’s Marketing Research supports the Zingers positioning as well. In all of the charts, they would fall under the shelf-cake categories, which were almost always lesser bought products statistically.
Segmentation Pyramids
Childhood Memory, liked the taboo of loving something that isn’t good for you (Phone interview) Consumer needs: Evening dessert/snack (Mintel Report)
47% of the people surveyed ate an average of 6.5 products per month (Mintel)
Supermarkets/ages 18-24 (Mintel)
Ding Dongs
Childhood memory. A “special snack� (focus group) Special snack (sporadic, with certain family ie) Grandma or with friends (focus group)
47% of the people surveyed consumed about 6.5 products per month (Mintel) Consumed not on a regular basis (focus group)
Supermarkets/Ages 18-24
Ho Hos
Childhood memory (focus group)
Evening snack/dessert (mintel)
47% of the people surveyed consumed about 6.5 snack cakes per month (mintel)
supermarkets/18-24 (Mintel)
Cup Cakes
A favorite growing up. Fun treat! (Interviews with moms)
Evening snack/dessert (Mintel)
47% of the people surveyed consumed about 6.5 snack cakes per month(Mintel)
Supermarkets/ ages 18-24 (Mintel)
Sno balls
Iconic American snack: a classic; memories to times they consumed a fried twinkie
Evening snack/dessert(Mintel)
47% of the people surveyed consumed about 6.5 snack cakes per month (Mintel)
Young Male Adults/ “Bros� 18-24 (Time.com (Business & Money) google articles/mintel)
Twinkies
Non applicable because focus group members and our interviewees had nothing to say about this because they had never experience Evening snack/dessert (Mintel)
47% of the people surveyed consumed about 6.5 snack cakes per month
Supermarkets/ ages 18-24
Zingers
Analysis of Competitive Sets & Current Position within Competitive Set
Ding Dongs Competitive Set:
CHOCOLATE BELLS (TASTYKAKE)
CHOCOLATE BELLS (MRS. FRESHLEY’S)
DEVIL SQUARES (LITTLE DEBBIES)
COCOA CREMES (LITTLE DEBBIES)
Ding Dongs Current Position within Competitive Set: DING DONGS ARE IN CONSIDERATION SET….however not the leading brand: → Little Debbie’s Cocoa Cremes are considered more moist on Amazon reviews → Tastykake’s Chocolate Bells have more nutritional value (calories are 210 vs. 368 with less fat and less carbs) → Hostesses Ding Dongs are the best tasting of its competitive set but doesn’t have any health benefits → Not very popular of the hostess products (only one person in our focus group had eaten one before)
Ho Hos Competitive Set: STRAWBERRY SHORTCAKE ROLLS
SWISS ROLLS
BOSTON CREME ROLLS
BANANA PUDDING ROLLS
LITTLE DEBBIES
SWISS ROLLS
TASTYKAKE
SWISS ROLLS
SWISS ROLLS WITH REESE’S PEANUT BUTTER
MRS. FRESHLEY’S
HO HOS Current Position within Competitive Set: HO-HO’S ARE NOT IN THE CONSIDERATION SET OF THEIR COMPETITORS: → All of ho-ho’s competitors have better advantages of their products → Devil’s Food Creme Cakes have more cake to cream ratio making them more pleasing to the palate → Tastykake’s Swiss Rolls have low sodium and iron which make them more attractive to healthier eaters → Little Debbie’s Swiss Rolls are cheaper but don’t have any better of taste than Ho Hos → Our focus group said Ho Hos taste very processed and don’t have any flavor → People would like to see more cake and less cream which is why Devil’s Food Creme Cakes are more popular
Twinkies Competitive Set: CLOUD CAKES
LITTLE DEBBIES
BANANA TWINS
CHOCOLATE DREAMIES
DREAMIES
TASTYKAKE
DREAMIES
MRS. FRESHLEY’S
Twinkies Current Position within Competitive Set: TWINKIES ARE THE LEADER OF THEIR CONSIDERATION SET! → Most iconic hostess product → Our Interviewees all said Twinkies reminds them of their childhood → People were outraged when they stopped being sold (black market on eBay) →Nothing to substitute a Twinkie for--its competitors aren’t as sweet or indulgent → Tastykake’s Dreamies are stated to be less sweet and considered a “knockoff” of the Twinkies Hostess President said, “While imitation may indeed be the sincerest form of flattery, the Twinkie is like Elvis: many impersonators but only one king.”
Sno Balls Competitive Set: SNOW BALLS
SNOW BALLS
(MRS. FRESHLEY’S)
(TASTYKAKE)
Sno Balls Current Position within Competitive Set: SNO BALLS ARE IN TOP 3 OF CONSIDERATION SET! → consumers only have two other option besides Hostess’s Sno Balls → Not a very popular product of Hostess → No one in our focus group had eaten one → Only one of our interviewees had eaten them
Cup Cakes Competitive Set: LITTLE DEBBIES:
MRS. FRESHLEY’S:
TASTYKAKE:
SARA LEES:
Cup Cakes Current Position within Competitive Set: CUP CAKES ARE THE LEADER OF THEIR CONSIDERATION SET! → Favorite hostess product of our focus group → Focus group all said Cup Cakes were a childhood desert → Sara Lee’s Devils food Creme Cakes have a better bite hite but less cream → Little Debbie’s cupcakes are not as good (too much icing) according to a consumer amazon review → Tastykake’s cupcakes without the filling are not as enjoyable
Zingers Competitive Set: RASPBERRY DREAMIES
CHOCOLATE DREAMIES
MRS FRESHLEY’S DEVILS CREME
LITTLE DEBBIES LITTLE DEBBIES
MRS. FRESHLEY’S
Zingers ZingersCurrent CurrentPosition Position within withinCompetitive CompetitiveSet: Set: ZINGERS ARE NOT IN THEIR CONSIDERATION SET! ZINGERS ARE NOT IN THEIR CONSIDERATION SET! → Not differentiated between other brands → Not differentiated between other brands → Focus groups did not know what a Zinger was → Focus groups did not know what a Zinger was → Mothers in interview didn’t have experience with Zingers → Mothers in interview didn’t have experience with Zingers
Hostess’s Current Position within Competitive Set: → Hostess is the second leading brand in the consideration set within its competitive set (Mintel)
Brand Positioning Matrix Brand/Product Target Consumer
HOSTESS
LITTLE DEBBIES
TASTYKAKE
MS. FRESHLEY’S
Need State
18-24 COLLEGE KIDS
INDULGENT SNACK /GUILTY PLEASURE
5-16/ ACTIVE KIDS
LUNCH TIME SNACK /A TREAT AFTER SPORTS COMPETITIONS
50 & UP
INDULGENT SNACK
MIDDLE AGE
A SNACK THAT SATISFIES AS A MEAL
Competitive Set
Benefit
Reason Why
Brand Personality
LITTLE DEBBIES
PLEASURE/ HAPPINESS/ NOSTALGIA
RELIVE CHILDHOOD MEMORIES/ NEVER A BAD EXPERIENCE (VALUE BASED)
CLASSIC AMERICAN SNACK
HOSTESS
SUITS A KIDS LIFESTYLE
EASY TO TAKE ON THE GO/BAGGED LUNCHES (PERFORMANCED BASED)
SUITS A KIDS LIFESTYLE
MS. FRESHLEY’S
AFTER DINNER EXPERIENCE
EASY AT HOME DESERT (PERFORMANCED BASED)
SIMPLISTIC SOPHISTICATED DESERTS
TASTYKAKE
WIDE VARIETY/ SUBSTANTIAL SNACK
MORE SATISFYING THAN A SNACK (QUALITY BASED)
LOW QUALITY BAKERY FAVORITES
Perceptual Map High Popularity
Low Taste
High Taste
Low Popularity
Hostess Positioning (Within Stores)
Safeway
Cupcakes had been sold out which directly correlates to what we found in our focus group. (cupcakes were the overall most popular snack cake)
Safeway cont. By this image you can see that Safeway stores place the Hostess products are placed among the bread aisle.
The Hostess products had shelf space as well as their own personal Hostess product shelf
Safeway cont. On the way out of the store, there is an area of products packaged for single purchase. As you can see by the yellow tags, Safeway was having a 10 for $10 deal.
King Soopers
In King Soopers the prepared cakes and pies shelf space is placed by the dairy sections shoved off into the corner with poor visibility when roaming the aisles. Only two boxes of Hostess’s Ding Dongs were present while Little Debbie’s products had the most shelf space and the biggest presence. The rest of the hostess products were not sold out, but in fact not available or sold at the store.
Target
At target the prepared cakes and pies were placed in the bread and pastry aisle. Hostess had a lot of shelf space and a wide variety of their products available. The big boxes of twinkies, cupcakes, and ho ho’s were piled up seeming to not be selling while the smaller two pack snacks were almost sold out. Little Debbie, while they didn’t have as much of a selection the products they had out on the shelves were slim, showing people were buying those more than Hostesses.
University Market & Deli The Hostess products were found in the cookie section of the market. This store only sold Twinkies, Sno balls, Ho Hos, Chocolate Zingers, and Cupcakes. The Zingers and Cupcakes are in a Mrs. Freshley’s box, as if the store associate didnt notice a difference in the packaging or logos.
7/11 At 711, the Hostess Selection was far less than any other store. 711 sold Coffee Cakes, Donettes, Ding Dongs, Sno Balls, Ho Hos, Vanilla Cupcakes and Twinkies. The products were placed next to the coffee and fresh baked dessert products.
Johnson’s Corner At this famous truck stop, there was almost every variation of Hostess products, as well as many different competitors. It was an interesting gas station that contained it all.
Short-Stop The snacks were positioned under the coffee, so it was obvious that they are targeting coffee drinkers. They only had Twinkies and Donettes. It was surprisingly hard to find them.
Conclusions THE HOSTESS BRAND’S REPUTATION IS BETTER THAN THE PRODUCT ITSELF → Hostess products are NOT nutritious or healthy in any way → Hostess products are a classic American treat → Hostess cakes represents childhood memories for their users → While the products are not the best tasting, all of our interviewees say they have never had a bad experience eating a hostess product
Strengths MOST IMPORTANT: IT’S A CLASSIC AMERICAN SNACK → Nostalgia feeling: emotional benefit of these snacks being able to have a lasting impression on the memories of many people’s childhood (a snack classic) →On the go snacks: very portable and easy to eat when traveling from place to place →They have power to persuade people, and set trends
Weaknesses MOST IMPORTANT: No health benefits what-so-ever →According to our focus group, most of the products lacked flavor (They said that the Ho Hos and Ding Dongs had the same exact taste)
→The participants in our focus group also found many of the snack cakes “too sweet”
→They can’t be differentiated from similar products →”Artificial” taste (and poor “almost chemical” aftertaste)
→Going out of business reputation →Lack of advertising → Unappealing packaging (oily residue on clear packaging)
Our Recommendation →Stick to hostesses as a quick grab n go snack in the convenient two pre packaged products that you can take with you wherever you go →Don’t make the snack cakes “healthier”: - This is a snack that people like to indulge in (thats the main focus of hostess) - People eat this product as a treat and aren’t concerned about the nutritional aspects of the cakes We believe Hostess products should stay as they are and be targeted more as a snack people reach for when they want to indulge in a sweet treat. →Focus LESS on the fact that the product has made a “comeback” and more on the fact that this snack is a CLASSIC: - Hostess is the go to brand for an indulgent snack that is satisfying and sweet - Hostess has been around forever and is the brand people recognize when purchasing shelf stable cakes and pies →Broaden the target market to young parents to get the products for their children: - While young adults are the primary users of the product many kids like hostess products and will by them when away from parents - As a brand, hostess should position the product to appeal to younger mothers so they buy the cakes for their kids
Social Media A way to penetrate our market of young adults is to use social media → Hostess used the video app “Vine” during their “Sweetest Comeback” Campaign where they asked their consumers to make videos showing themselves preparing for the comeback. WELL… the products are back and its time to take action on….
Twitter- 50.7 followers, start hashtags:
#americanclassic #treatyoself #nostalgia
Instagram- Recommendation- Make an instagram to ask followers to post pictures of their favorite products (start with a contest to spark people’s attention)
Facebook - The Hostess Page has a little under 900,000 - Lets get it over 1 million! (RECOMMENDATION) If we hit 1 million likes we will release a new product!
Pinterest: fun ideas of how to incorporate hostess products to fun activities #projecttwinkies
Citations (APA) 1. Ding Dongs. (n.d.). Hostess. Retrieved February 27, 2014, from http://web.archive.org/web/20120919212719/http: //hostesscakes.com/products/ding-dongs 2. Parker, R. (n.d.). Michigan Ann Arbor Bay City Detroit Flint Grand Rapids Jackson Kalamazoo Lansing Muskegon Saginaw All Michigan. The Kalamazoo Gazette. Retrieved February 28, 2014, from http://www.mlive.com/news/kalamazoo/index. ssf/2012/11/poll_which_hostess_snack_cake.html 3. Press, A. (2012, January 11). Business / Technology. The Seattle Times. Retrieved February 27, 2014, from http: //seattletimes.com/html/businesstechnology/2017210885_apushostessbrandsbankruptcyfilingtimeline.html 4. The History of Twinkie. (n.d.). Food History. Retrieved February 28, 2014, from http://www.kitchenproject. com/history/twinkie.htm 5. What is your favorite Hostess snack that you are looking forward to when the new company starts production?. (n.d.). Emporia Gazette. Retrieved February 27, 2014, from http://www.emporiagazette.com/latest_news_and_features/poll_364245b0cd49-11e2-b96a-001a4bcf6878.html