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grape
--nuts




         Life—Better with grape-nuts

                         Lauren Rahman
                            Nicole Mullet
                          Brandon Mead
Industry History
 • First Mass Produced Cereal
   – Dr. John Harvey Kellogg
   – 1906
   – Flakes
 • Consistent Growth and Expansion
 • Influx of Brands: 1997
   – Industry became extremely concentrated
   – 200 RTE cereals
Industry Key Features
 • Monopolistic Competition
   – Few Top Competitors
   – Wide Array of Brands
   – Aggressive Introduction of New Products
 • High Price-To-Cost Margin
 • Large Advertising-to-Sales Ratio
Competitors
 Health Cereal Category
 • Kellogg
   – Mini-Wheats
   – Raisin Bran
 • Special K
 • Kashi
 • General Mills
   – Fiber One
Grape-Nuts History
 • Created
   – 1898
   – Charles W. Post
 • Consistent Growth
 • Marketing
   IntroHealthy FamiliesNatural Cereal
   Euell Gibbons Will Rogers Jr.testimonials
Current Marketing
 •   Slogan: “That takes Grape-Nuts”
 •   Target Market
 •   Positioning
 •   Marketing Mix

 • Current Market Share: Less than 2%
Brand Problems
 •   Un-Popular Taste
 •   Less Healthy Than Some Alternatives
 •   Lack of Product Variety
 •   Outdated Image
Brand Users
 Two biggest general user profiles:
 • “Educated, affluent and upper middle class families
   in established suburbs and new suburbs/ ex-urban
   towns respectively.”

 • “Lower middle class to downscale, factory and farm
   workers in factory towns and mid-American
   agricultural communities respectively.”
 As stated in: (Northwestern 10)
Age: 35-44
             GN Users by Age
 25.0%




 20.0%


                               18-24
 15.0%                         25-34
                               35-44
                               45-54
 10.0%                         55-64
                               65+


  5.0%




  0.0%
Gender: 48% Adult Females
            GN Users by Gender
 60%




 50%




 40%
                                 Children

                                 Adult Males
 30%
                                 Adult Females


 20%




 10%




 0%
Income: 53% $35,000 or higher
             GN Users by Income
 60%



 50%



 40%
                                  $35+
                                  $25-34.9
 30%
                                  $15-24.9
 20%                              $15-

 10%



 0%
Users Decide Based on Health
 100

  90

  80

  70

  60                           High in Protein
  50                           High in Vitamins
                               Low in Fat
  40
                               Low in Calories
  30                           Low in Sugar
  20

  10

   0

        Users      Non-Users
User Psychographic Profile
 •   Health-Conscious
 •   Somewhat Trendy
 •   Independent/In Control
 •   Leaders
 •   Intelligent
 •   Outdoors
 •   Traditional/Family-Oriented
Consumer Decision Making
 • Morning Routine/Brand Loyalty
   – Our goal
 • Attitude/Beliefs in Popular Culture
   – Trend towards health-consciousness
 • Affordability
   – Increasing brand value
Analysis: Strengths & Weaknesses
 Strengths
 • Healthy
 • Tradition
 • Trustworthy
 Weaknesses
 • Flavor
 • Out-dated image
Analysis: Opportunities & Threats
 Opportunities
 • Product line expansion
 • Partnership with other food products
 • Trend towards health-conscious eating
 Threats
 • Tough competition
 • Wide variety of competitors
Our Campaign
Big Idea & Slogan
   Breakfast cereal that goes beyond the
   ordinary breakfast, doubling with many other
   foods and improving many life situations-
   making the consumer’s life better in many
   ways.

   Life-Better with Grape-Nuts.
Big Idea
 Approach: Cognitive
 • Impression and Communication
    – Relevant
    – Versatile
    – Beneficial
    – Healthy
 • Solves the Un-Popular Flavor Issue
 • Reaches Beyond Breakfast-Eaters
 • Appeals to Wise Mothers
 • Extendable
Positioning
   For women with families, Grape-Nuts is the
   breakfast cereal that provides versatility,
   health, and improved well-being to them and
   their family.
Target Market: Demographics
 •   Women: food purchase decision-makers
 •   25-45
 •   With Families
 •   Suburban to Rural
 •   Mid-High Income
Target Market: Psychographics
 •   Health-conscious
 •   Independent
 •   Leaders
 •   Active lifestyle (on the go)
 •   Practical
 •   Physically fit
 •   Outdoors
 •   Trendy
Campaign Goals: Short-Term (1 year)
 • Generate increased consumer interest and
   buying activity
 • Generate media attention
 • Popularize the Grape-Nuts message by
   creating shared experiences among
   consumers
 • Bring Grape-Nuts above 2.5% in market share
Campaign Goals: Long-Term (3+Years)
 • Create and sustain consumer loyalty
 • Change negative Grape-Nut brand perceptions
 • Bring Grape-Nuts above 3.0% in market share
Marketing Mix
 •   Television
 •   Website Ads
 •   Print
 •   YouTube
 •   Website
 •   Social Media
Website & Print Packages
 Initial Partnerships:
 • Every Day w/ Rachel Ray
 • Food Network
 • Good Housekeeping
 • Cooking Light
 • Vegetarian Times
Interactivity
  Website Ads  Videos  Social Media
  Print Ads  Website  Purchase
  Exposure  Engagement  Action
Website
Print Advertising
Public Relations
 • Event Marketing
   – Faux Food Vendor
 • Philanthropy
   – Riley Children’s Hospital
   – Help the Hungry
   – Live Strong
   – Big Brother Big Sister
Partnerships & Co-Branding
     • Yoplait
     • Breyers
     • Bisquik
Direct Marketing
 In-Store Samples
 • Recipes
 Direct Mailing
 • Recipe books and coupons
Measuring Effectiveness
 Specific
 • Redeemed Coupons
 • Per Click
 • Video Hits
 • Social Media Monitoring
 General
 • Sales
 • Measuring Market Share
grape
--nuts



  Future Plans

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Grape Nuts Marketing Campaign

  • 1. grape --nuts Life—Better with grape-nuts Lauren Rahman Nicole Mullet Brandon Mead
  • 2. Industry History • First Mass Produced Cereal – Dr. John Harvey Kellogg – 1906 – Flakes • Consistent Growth and Expansion • Influx of Brands: 1997 – Industry became extremely concentrated – 200 RTE cereals
  • 3. Industry Key Features • Monopolistic Competition – Few Top Competitors – Wide Array of Brands – Aggressive Introduction of New Products • High Price-To-Cost Margin • Large Advertising-to-Sales Ratio
  • 4. Competitors Health Cereal Category • Kellogg – Mini-Wheats – Raisin Bran • Special K • Kashi • General Mills – Fiber One
  • 5. Grape-Nuts History • Created – 1898 – Charles W. Post • Consistent Growth • Marketing IntroHealthy FamiliesNatural Cereal Euell Gibbons Will Rogers Jr.testimonials
  • 6. Current Marketing • Slogan: “That takes Grape-Nuts” • Target Market • Positioning • Marketing Mix • Current Market Share: Less than 2%
  • 7. Brand Problems • Un-Popular Taste • Less Healthy Than Some Alternatives • Lack of Product Variety • Outdated Image
  • 8. Brand Users Two biggest general user profiles: • “Educated, affluent and upper middle class families in established suburbs and new suburbs/ ex-urban towns respectively.” • “Lower middle class to downscale, factory and farm workers in factory towns and mid-American agricultural communities respectively.” As stated in: (Northwestern 10)
  • 9. Age: 35-44 GN Users by Age 25.0% 20.0% 18-24 15.0% 25-34 35-44 45-54 10.0% 55-64 65+ 5.0% 0.0%
  • 10. Gender: 48% Adult Females GN Users by Gender 60% 50% 40% Children Adult Males 30% Adult Females 20% 10% 0%
  • 11. Income: 53% $35,000 or higher GN Users by Income 60% 50% 40% $35+ $25-34.9 30% $15-24.9 20% $15- 10% 0%
  • 12. Users Decide Based on Health 100 90 80 70 60 High in Protein 50 High in Vitamins Low in Fat 40 Low in Calories 30 Low in Sugar 20 10 0 Users Non-Users
  • 13. User Psychographic Profile • Health-Conscious • Somewhat Trendy • Independent/In Control • Leaders • Intelligent • Outdoors • Traditional/Family-Oriented
  • 14. Consumer Decision Making • Morning Routine/Brand Loyalty – Our goal • Attitude/Beliefs in Popular Culture – Trend towards health-consciousness • Affordability – Increasing brand value
  • 15. Analysis: Strengths & Weaknesses Strengths • Healthy • Tradition • Trustworthy Weaknesses • Flavor • Out-dated image
  • 16. Analysis: Opportunities & Threats Opportunities • Product line expansion • Partnership with other food products • Trend towards health-conscious eating Threats • Tough competition • Wide variety of competitors
  • 18. Big Idea & Slogan Breakfast cereal that goes beyond the ordinary breakfast, doubling with many other foods and improving many life situations- making the consumer’s life better in many ways. Life-Better with Grape-Nuts.
  • 19. Big Idea Approach: Cognitive • Impression and Communication – Relevant – Versatile – Beneficial – Healthy • Solves the Un-Popular Flavor Issue • Reaches Beyond Breakfast-Eaters • Appeals to Wise Mothers • Extendable
  • 20. Positioning For women with families, Grape-Nuts is the breakfast cereal that provides versatility, health, and improved well-being to them and their family.
  • 21. Target Market: Demographics • Women: food purchase decision-makers • 25-45 • With Families • Suburban to Rural • Mid-High Income
  • 22. Target Market: Psychographics • Health-conscious • Independent • Leaders • Active lifestyle (on the go) • Practical • Physically fit • Outdoors • Trendy
  • 23. Campaign Goals: Short-Term (1 year) • Generate increased consumer interest and buying activity • Generate media attention • Popularize the Grape-Nuts message by creating shared experiences among consumers • Bring Grape-Nuts above 2.5% in market share
  • 24. Campaign Goals: Long-Term (3+Years) • Create and sustain consumer loyalty • Change negative Grape-Nut brand perceptions • Bring Grape-Nuts above 3.0% in market share
  • 25. Marketing Mix • Television • Website Ads • Print • YouTube • Website • Social Media
  • 26. Website & Print Packages Initial Partnerships: • Every Day w/ Rachel Ray • Food Network • Good Housekeeping • Cooking Light • Vegetarian Times
  • 27. Interactivity Website Ads  Videos  Social Media Print Ads  Website  Purchase Exposure  Engagement  Action
  • 30. Public Relations • Event Marketing – Faux Food Vendor • Philanthropy – Riley Children’s Hospital – Help the Hungry – Live Strong – Big Brother Big Sister
  • 31. Partnerships & Co-Branding • Yoplait • Breyers • Bisquik
  • 32. Direct Marketing In-Store Samples • Recipes Direct Mailing • Recipe books and coupons
  • 33. Measuring Effectiveness Specific • Redeemed Coupons • Per Click • Video Hits • Social Media Monitoring General • Sales • Measuring Market Share