Emily Massaro, Tyra Mazzer
Situation Analysis History
In 1980, Steve Bernard switched over from selling auto parts to selling potato chips. He bought a storefront in Hyannis, Massachusetts and took knowledge he had gleaned from a week long course in potato chip making in Pennsylvania and created Cape Cod Potato Chips. Bernard maintained an atypical approach to potato chips, by cooking the batches in kettles rather than frying them in oil. This resulted in a chip that had significantly more crunch than its competitors. Initially, the company struggled to turn a profit, but when summer came around business began to pick up thanks to the tourist-popular location. In 1985, the company was bought by Anheuser-Busch, and operated under the Eagle Snack division as part of Busch’s desire to balance its beer with snacks. By the end of the next year, 80,000 bags of chips were being sold on a daily basis all along the East Coast. In 1996, Bernard bought the company back and three years later, the company was purchased again by Lance Inc., as sales were reaching around $30 million annually. Cape Cod Potato Chips continue to dominate the market in terms of kettlecooked chips, and offer over 18 varieties including waffle cut, 40% reduced fact and chef ’s recipe. In addition, the self-guided factory tours house over 250,000 visitors to Cape Cod each year, earning a reputation as the largest tourist attraction in the area.
Competitors
Frito Lay provides a wide variety of brands ranging from Doritos to Santitas to Sabra Hummus. The primary potato chip competitor however is Lay’s, which have been described as “America’s Favorite Snack” for nearly 75 years, resting on top of the chip industry. Lay’s offers a wide variety of unique flavors such as Garden Tomato Basil, Chile Limon and Jalapeno. They also come in different varieties including kettle cooked, original, baked, popped, wavy and stax. The Lay’s website stresses that all chips contain only 3 ingredients- grade A potatoes, better oils (such as sunflower, canola oil, providing less saturated fat) and salt and also goes through the process of actually making the chips. They have a strong social media presence with over 6 million likes on facebook, and posts tailored specifically to current trends and events (Halloween, throwback Thursday). They also have twitter and Youtube pages. Ruffles is another brand included under the parent company Frito Lay. Ruffles offers unique flavors similar to those of Lay’s, including Loaded Bacon, Jalapeno Ranch and Tangy Honey mustard. Ruffles also offers MAX, crispy, light, reduced fat and baked varieties. They do not have their own website, and the information contained on the Lay’s page emphasizes the flavors, the famous ridges and displays the nutrition facts. Their social media presence is significantly smaller than that of Lay’s, with only about 800,000 likes however they are active with relevant posts and updates (World Series, NFL). Ruffles currently holds the number 2 spot for leading potato chip brands. Kettle Brand chips are less recognized than those of Frito Lay, but offer a wide selection of flavors including Honey Dijon, Spicy Thai and Cheddar Beer in Krinkle Cut, reduced fat, baked and organic varieties. They have a strong website, which outlines nutrition facts for each flavor as well as company information that stresses using non-GMO ingredients, no trans fats, no artificial colors and no artificial flavors. They also stress that the chips are produced in small batches, and that they had humble beginnings, much like Cape Cod Chips. Consumers can also gain access to beer pairing guides, recipes and flavor match activities. Their facebook presence has about 600,000 likes, and posts regularly highlighting the different flavors.
SWOT
Strengths— •• Cape Cod Potato Chips offers a reduced fat product •• Cape Cod Potato Chips are made of all-natural ingredients •• Cape Cod Potato Chips offer a unique product—the waffle cut chip •• The Cape Cod Potato Chip factory is one of the area’s top tourist destinations, with over 250,000 visitors annually •• Cape Cod Potato Chips are manufactured by Snyder-Lance, the second largest snack maker in the United States Weaknesses— •• Based on primary research, the Cape Cod Potato Chips brand was only recalled by those who had visited Cape Cod before •• Cape Cod Potato Chips does not offer any unique flavors •• Cape Cod Potato Chips is not one of the top brands in the industry (Lay’s, Lay’s Natural, Ruffles, Wavy Lay’s) •• Cape Cod Potato Chips’ does not have a strong social media presence or a thoughtful social media strategy •• Cape Cod Potato Chips are more expensive than competing brands Opportunities— •• Within the US Snack Market, potato chips are #1 •• Within the US Snack Market, potato chips rose from 6.5% of the market in 2005 to 9.1% of the market in 2010 •• (BMC Information Services) •• 46% of consumers view snacks as an important part of a healthy eating plan throughout the day •• (BMC Information Services) •• Cape Cod Potato Chips are sold in 45 states and 5 European markets Threats— •• Kettle Brand Potato Chips have branded themselves as the “kettle cooked” chip •• Cape Cod, MA’s primarily attracts tourists in the summer with few in the other months which may hurt Cape Cod • Cape Cod Potato Chips’ has an extremely strong connection to Cape Cod, MA, which could potentially neglect consumers who have not been
Industry
Potato chips are considered an American staple, an addition to any barbecue, get-together or social event. In 2003, potato chips celebrated their 150th birthday, with retail sales reaching over $6 billion per year and employees exceeding 650,000 people. Despite their popularity, there have been many concerns raised about the use of vegetable oils, and the presence of trans fats and excessive sodium, creating adverse health effects. A recent study found that potato chip consumption was a primary factor in weight gain, having more of an effect than soft drinks. Because of this, many companies have invested in researching and developing healthier chip varieties as an addition to their line.
Objective
To increase recognition of the brand for consumers who have not been to Cape Cod, MA. We want to position Cape Cod Potato Chips as possessing the qualities that match the target audience’s lifestyle.
Research Methods Objectives •• Evaluate the strength of Cape Cod Potato Chip’s connection with Cape Cod, MA. •• Measure consumer’s awareness of the brand. •• Explore what makes Cape Cod Potato Chips unique from other brands in the industry
Primary Through a survey, we found the following insights: •• 100% of respondents that had never visited Cape Cod were also unable to recall Cape Cod Potato Chips as a brand. •• When asked about brands they would associate with Cape Cod, MA, Cape Cod Potato Chips was the most recalled brand, but only by respondents who had been to Cape Cod, MA before. •• When asked about what words or images they associated with Cape Cod, MA, a vast majority of respondents replied with beach-related imagery, i.e. “beach,” “ocean,” “sailing,” etc. •• When asked about what words or images they associated with Cape Cod, MA, about half of respondents responded with “relaxing” or with words that would fit under a similar schema, i.e. “peaceful” or “sunset.”
Secondary
Based on research from MRI+ Mediamark Reporter and Forbes.com, our target audience: •• Hold jobs in professional and related occupations as well as management, business and financial operations. •• Are heavy consumers of magazines, including magazines related to traveling such as Travel + Leisure and USA Airways Magazine; magazines related to their occupations, including The Economist and Entrepreneur; and magazines related to coastal lifestyles and recreation including Boating and Coastal Living •• Are heavy users of the Internet, going on sites that are related to furthering their careers, such as monster.com and CareerBuilder.com as well as sites related to travel, including Expedia.com and Tripadvisor.com •• Are most comfortable when they can relate to concepts, strategies and ideas on their own. •• Always tries to maintain a work-life balance, in that they work hard and play hard.
Target Market Profiles Demographics
Our target audience is men and women between the ages 25-40. Many of them are driven by their professional goals, and have yet to get married or start families. Our audience is not price conscious when it comes to everyday purchases, such as groceries.
Psychographics
Our target audience is made up of young professionals, many of which are aspiring to hold high positions in management, business and other financial occupations. They consume media based on their professional goals as well as their interests in traveling for recreational purposes. As their salary increases, our target audience is interested in spending more money on “luxury� items, whether it be everyday purchases or one-time vacations.
A single serving bag of Cape Cod Potato Chips can cost up to $2.00 more than a similarly sized bag of another national brand’s potato chips. Cape Cod Original Potato Chips are made from just three all-natural ingredients—potatoes, canola oil and salt. Primary research showed that 100% of respondents that had never visited Cape Cod were also unable to recall Cape Cod Potato Chips as a brand. Cape Cod Potato Chips come in varieties aside from kettle cooked, which include waffle cut, 40% reduced fat, and Chef’s Recipe. Within the US snack market, potato chips rose from 6.5% of the market in 2005 to 9.1% in 2010.
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Current Logo Campaign Tagline: “Go for the good stuff.” Call to Action: “Find Cape Cod at your local supermarket.”
Executional Mandatories
The tone of these advertisements is both confident and celebratory, discussing the chip’s high quality and its benefit to the consumer. There is also humor involved in the visual’s connection to the copy of the advertisements.
The Tone
Cape Cod Potato Chips are the right snack choice, with just three all-natural ingredients and a unique Cape Cod kettle crunch.
Promise
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Supporting Evidence
Demographics: • Young professionals, ages 25-40 • Driven by professional goals • Yearly income of about $75,000 • Not yet married or starting families Psychographics • Interested in travel and recreation • Consume media based on both professional goals and other interests • Not price conscious • Spend money on “luxury” items, whether it be everyday purchases or one-time vacations
Target Audience
We aim to increase recognition of the brand for consumers who have not been to Cape Cod, MA while still maintaining the geographic connection. We also hope to position Cape Cod Potato Chips as a quality snack choice.
Role of Campaign
In a saturated market, Cape Cod Potato Chips stand apart from their competitors. With a kettle-cooked approach that creates a big crunch, and humble beginnings from Hyannis, MA, Cape Cod Potato Chips have a different approach than most well known potato chip brands and provide snackers with a number of different varieties of chip to match any taste, occasion or lifestyle.
Background
Creative Brief
Campaign Strategy
Big Idea Cape Cod Potato Chips are the right snack choice, with just three all-natural ingredients and a unique Cape Cod kettle crunch.
Fowl Play
Most fast food options contain over 40 different ingredients. Next time you snack, skip the pyrophosphates and silicoaluminates and reach for a bag of Cape Cod Potato Chips. You’ll be happier than a seagull with a french fry to learn that Cape Cod uses just three ingredients- hand selected potatoes, canola oil and salt- in each and every batch of kettle cooked potato chips. Now that’s something that’s easy to digest.
Gull-ibl
e
Many brands will claim to offer the most satisfying snack. But wouldn’t you be more satisfied to know that your snack of choice is made from just three all-natural ingredients? Or that it’s slow-cooked in small batches to pack a unique kettle crunch? Forget all of the grease-laden promises and choose Cape Cod Potato Chips. You’ll be happier than a seagull with an abandoned picnic lunch. Try our Reduced Fat option, baked to remove excess oil and reduce fat naturally.
Go for the good stuff
Go for the good stuff Find Cape Cod at your local supermarket.
Most fast food options contain over 40 different ingredients. Next time you snack, skip the pyrophosphates and silicoaluminates and reach for a bag of Cape Cod Potato Chips. You’ll be happier than a seagull with a french fry to learn that Cape Cod uses just three ingredients: hand selected potatoes, canola oil and salt in each and every batch of kettle cooked potato chips. Now that’s something that’s easy to digest.
Find Cape Cod at your local supermarket.
Many brands will claim to offer the most satisfying snack. But wouldn’t you be more satisfied to know that your snack of choice is made from just three all-natural ingredients? Or that it’s slow-cooked in small batches to pack a unique kettle crunch? Forget all of the grease-laden promises and choose Cape Cod Potato Chips. You’ll be happier than a seagull with an abandoned picnic lunch. Try our Reduced Fat option, baked to remove excess oil and reduce fat naturally.
birdb rain
Nobody wants to eat something that’s been sitting out under a heat lamp for hours. Every time you open a bag of Cape Cod Potato Chips, you know you’ll be guaranteed freshness. The three-ingredient combination of hand selected potatoes, canola oil and salt is cooked one small batch at a time and then sealed to preserve the flavor. You’ll know you’ve made the right decision when you pop open a bag and experience the Cape Cod crunch. Don’t let your lunch weigh you down.
Go for the good stuff
Find Cape Cod at your local supermarket.
Nobody wants to eat something that’s been sitting out under a heat lamp for hours. Every time you open a bag of Cape Cod Potato Chips, you know you’ll be guaranteed freshness. The three-ingredient combination of hand selected potatoes, canola oil and salt is cooked one small batch at a time and then sealed to preserve the flavor. You’ll know you’ve made the right decision when you pop open a bag and experience the Cape Cod crunch. Don’t let your lunch weigh you down.