The Relevance and Reality of Branding by Jeff Swystun
Ucon presentation.key
1. Presentation to
Chock full o’Nuts & Hills Bros.
2010 Promotion Recommendations
2. 2010 Brand Planning
• Brief overview of primary MZB coffee brands relative
to their product life cycles
• Recommendation on the best way forward in terms of
the best strategies and tactics for the brands
3. 2010 Brand Planning
Marketing Mix Considerations: Product Life Cycle
Canned coffee is considered to be a mature product category
Product Life Cycle Stages
Introduction Growth Maturity Decline
Sales Low Sales Rapidly Rising Sales Leveling Sales Declining Sales
Customers Innovators Early Adopters Middle Majority Laggards
Competitors Few Growing Numbers Stable Numbers Declining Numbers
Chock full o’Nuts
Hills Bros. Coffee
Maxwell House
Folgers
Source: P. Doyle, “The Realities of Product Life Cycles” Quarterly Review of Marketing
4. 2010 Brand Planning
Canned Coffee: Share of Requirements
Share of requirements for MZB brands is as much as half that
of leading competitors.
60
Folgers - 55% 45
Maxwell House - 46%
Chock full o’Nuts - 33%
Hills Bros. - 27% 30
15
0
Share of Requirements
5. Brand Loyalty and Switching
Brand loyalty among canned coffee buyers
Competitive Loyal Brand Loyal
CFON
Hills
Maxwell House
Folgers
6. Brand Loyalty and Switching
Brand loyalty among canned coffee buyers
Competitive Loyal Brand Switchers Brand Loyal
CFON
Hills
Maxwell House
Folgers
7. Brand Loyalty and Switching
Brand loyalty among canned coffee buyers
Competitive Loyal Brand Switchers Brand Loyal
CFON
Hills
Maxwell House
Folgers
80%+ of canned coffee buyers are brand switchers
8. 2010 Brand Planning
Marketing Mix Considerations: Product Life Cycle
Products in a mature category typically employ a marketing
mix that includes equal measures of advertising and
promotion Product Life Cycle Stages
Introduction Growth Maturity Decline
Maximize Profit/
Marketing Create Product Maximize Market Reduce
Defend Market
Objectives Awareness & Trial Share Expenditures
Share
Marketing
High High Moderate Low
Expenditures
Build awareness Build Awareness & Stress Brand Reduce to Level
Advertising among early Trial in Mass Differences Needed to Retain
adopters Market (more coffee, steel) Hardcore Loyals
Reduce to Take Increase to Reduce to Level
Sales Strong Support to Advantage of Encourage Brand Needed to Retain
Promotion Drive Trial Heavy Consumer Switching Hardcore Loyals
Demand
Source: P. Kotler, “Marketing Management”, Kellogg School of Business, Northwestern University
9. 2010 Brand Planning
Recommended Brand Objective
• Defend/maintain share of canned coffee purchases
Recommended Brand Strategy
• Increase rate of sale among current MZB purchasers
10. 2010 Brand Planning
Marketing Mix Strategy Considerations
– Advertising works to drive awareness and perception
– Promotions work to drive actions
– A combination of advertising and promotions can provide
the brands a complete, well-rounded marketing plan that
would serve to achieve brand objectives
11. Marketing Mix
Key Recommendation:
Balanced Marketing Plan
Advertising + Consumer Promotion
Rationale:
• Addresses current purchasers (increase rate of sale)
• Drives consumer perception and action
• Provides tangible incentive at the point of purchase
70% of purchase decisions made at point of purchase
12. 2010 Brand Planning
Tactical Considerations
In a world of limited resources, building a marketing plan that starts
with the package and works out from there takes advantage of the
70% of consumer decisions being made at point of purchase.
13. 2010 Brand Planning
Tactical Considerations
Media
Shelf Store • FSIs
• Shelf Talkers • Circulars • Magazines
• Tear Pads • Demos • Newspapers
• Channel Strips • Shippers • Radio
• Racks • Window Banners • TV
• Coupon dispensers • Internet
• Aisle Vision
• NAM ShelfTalk • Outdoor
• Insignia PoPs • In-store Radio
• Direct Mail
• Vestcom • Kiosks
• Event Marketing
In a world of limited resources, building a marketing plan that starts
with the package and works out from there takes advantage of the
70% of consumer decisions being made at point of purchase.
14. 2010 Brand Planning
Tactical Considerations
Package Media
• In-Pack Bounce Shelf Store • FSIs
Back Coupons • Shelf Talkers • Circulars • Magazines
• In-pack Instant • Tear Pads • Demos • Newspapers
Win game • Channel Strips • Shippers • Radio
• Racks • Window Banners • TV
• In-pack premiums • Coupon dispensers
• Aisle Vision • Internet
• In-pack SLO offer • NAM ShelfTalk • Outdoor
• Insignia PoPs • In-store Radio
• Limited edition • Kiosks • Direct Mail
labels • Vestcom
• Event Marketing
In a world of limited resources, building a marketing plan that starts
with the package and works out from there takes advantage of the
70% of consumer decisions being made at point of purchase.
15. 2010 Brand Planning
Tactical Considerations
– In-pack Bounce-back coupons provide a highly practical
and efficient method of increasing rate of sale with
current purchasers of the brand
– MJB In-back Bounce-back Coupons: Winter 2008
Strong Redemption Rates:
- “Save $1.00 off Two” 6.92%
- “Save $0.75 off Two” 6.76%
- “Save $0.55 off Two” 4.22%
Extremely Efficient on a Cost/Unit Moved:
- “Save $1.00 off Two” $0.68
- “Save $0.75 off Two” $0.55
- “Save $0.55 off Two” $0.52
vs.
- FSI “Save $0.55” $0.96
(See addendum for detail)
16. 2010 Brand Planning
Discussion
– Strategy
– Tactics
– Next Steps
Mike Allen • 203-515-1267 • mike@spotlightmktg.com