erin baker’s marketing plan
TRANSCRIPT
ERIN BAKER’S MARKETING PLAN
PREPARING MARKETING PLAN FOR ERIN BAKER’S
Nathan Pic
▪ Zak Meyer
▪ Katheryn Conley
▪ Max Bohnson
▪ Nathan Wilson
▪ Mahmoud Alsaif
By
EXECUTIVE SUMMARY ▪ Started in 1994 by Erin Baker alone
▪ Currently has about 50 employees
▪ Produces two main products: The Original Breakfast Cookie and granola▪ Produces 6,500 breakfast cookies per day
▪ Made with no preservatives and last 105 days
▪ Produces 1,500 bags of granola per shift
▪ Main distributors located in the northwest, southwest, and midwest
▪ Uses non-traditional advertising such as social media
▪ Competitors are bars such as clif, and baked goods
Erin Baker Owner• Started by renting a 4-H kitchen at Whidbey Island Fairgrounds in 1994
•Started distributing cookies using a blue Schwinn
•Her dream was to reduce child obesity by 50% in the U.S. by promoting wholesome, nutritious ingredients
•The face of the company
Meet Erin Baker’s crew
OBJECTIVE: PREPARING MARKETING PLAN FOR BREAKFAST COOKIE
▪ Step 1: Collecting Data by conducting surveys
▪ Step 2: Analyzing The Data we collected
▪ Step 3: presenting the results brief eloquent way
STEP 1: COLLECTING DATA BY CONDUCTING SURVEYS
Katheryn Conley’s interviewing a household in Dodge Valley Mount Vernon WA 2/13/16 at 12:30 pm
Nathan Wilson interviewing a household in N. Forest St. Bellingham, WA 2/21/16 at 6:00 pm
Max Bohnson interviewing a household on Blaine Ave in Blaine WA, 98230 on 2-20-2016 at 4 PM
Zak Meyer interviewing a household on 16th Ave in Seattle, WA 2/26/16 at 5:00 pm
Mahmoud Alsaif Interviewing a household in High St, Bellingham, WA 2/22/16 at 6:00 pm
STEP 2: ANALYZING THE DATA WE COLLECTED &STEP 3: PRESENTING THE RESULTS BRIEF ELOQUENT WAY
▪ Breakfast cookie wishlist obtained by target customers
• how can the packaging be improved?
• What do people think of Erin Baker’s cookie package?
▪ Where would you prefer to purchase this product?
▪ Where do you learn about new products?
▪ Would you be more willing to buy a breakfast cookie if the price was discounted?
▪ How much would you be willing to pay for a breakfast cookie?
Per Box Per Small Cookie
▪ Average National Prices Price for 1 oz. energy barPrice for 1 oz. cookie
$0.21 $1.02
DATA ANALYSIS GRAPHS
HAVE YOU TRIED BREAKFAST COOKIE BEFORE?
Yes53%
No47%
TARGET MARKET
Yes No0%
20%
40%
60%
80%
100%
120%
Respondents Who Tried Erin Baker’s Breakfast Cookies Segmented By Education
Level
college graduatesome collegeHigh School/ GED
Yes No0%
20%
40%
60%
80%
100%
120%
Respondents Who Tried Erin Baker’s Breakfast Cookies Segmented By Avg. Yearly Income
$60,000-120000$30,000-60,000under $30,000
Yes No0%
20%
40%
60%
80%
100%
120%
Respondents Who Tried Erin Baker’s Breakfast Cookies Segmented By Gender
FemaleMale
HOW MANY HAVE TRIED A BREAKFAST COOKIE IN YOUR HOUSEHOLD ?
0 1 2 3 4 50
4
8
12
16
Series1
Number of household members
num
ber o
f hou
seho
lds
WHAT BRAND OF BREAKFAST COOKIE HAVE YOU TRIED?
Erin Bakers
Nature Valley
Barbara’s
Didn’t Know
0 3 6 9 12 15
HAVE YOU HEARD OF ERIN BAKER’S ?
Yes60%
No40%
HOW LONG ARE YOU WILLING TO WAIT UNTIL THE ORDER SHIPPED &HOW LONG WAIT TILL ORDER RECEIVED
0
1-2 days
3-7 days
7
1-2 weeks
0 4 8 12 16 20
How long wait till order receivedHow long wait till order shipped
ARE YOU INTERESTED IN RECEIVING UPDATES? IF SO ON WHICH PLATFORM?
no yes0
6
12
18
24
30
Interest in receiving updates
0 1 2 3 4 5
Yes, social media platform
ARE YOU WILLING TO CONTACT THE COMPANY IN CASE OF A PROBLEM? IF SO HOW?
Email Phone Social media In person0
2.25
4.5
6.75
9
11.25
Of the 19 respondents willing to contact the company. Preferred methode?
DEMOGRAPHICS
Gender Gender0
4.5
9
13.5
18
22.5Female Male
Under $30,000 $30,000-$60,000 $60,000-$120,0000
2.75
5.5
8.25
11
13.75Household Income
number of respondents
13%
57%
30%
Level of EducationHigh School/ GED Some College College Graduate
OUTREACH• Erin Baker’s donates 10,000 cookies per month to
children all over the United States who are in need of a healthier breakfast through the 1 million kids program.
• Social media
SUMMARY AND TARGET MARKET
PRODUCT
PROMOTION
PRICEPrice:Customers would be willing to pay as much as $1.50 per cookie and as much as $5.00 per box, with Erin Baker’s current prices at $0.73 to $0.97 per cookie and $5.75 per box they have already established very competitive prices in both the cookie, and energy bar markets. (We suggest that a price between $1 - $2)
DISTRIBUTION
TARGET MARKET▪ Based on our surveys, consumers would like to have a cookie that has the following
attributes:▪ Healthy and nutritious, low in sugar▪ Easy to grab-on-the-go▪ Readily available at retail outlets▪ Better taste or texture▪ Stronger retail presence
BRANDING
BRAND PRINCIPLE
“Erin Baker’s is dedicated to baking with simple, all natural, whole food ingredients for life on the go”(Erin Baker’s website)
BRAND RECOGNITION• According to the survey data, 60% said they recognized the Erin
Baker’s breakfast cookie brand.
• 40% did not recognize the Erin Baker’s brand.
yes no
BRAND PERSONALITY• Sincerity
• From humble beginnings• Wholesome• Community-oriented and giving
• Ruggedness• “For the athlete in all of us”(Erin Baker class)• Outdoorsy• For life on the go!
BRAND ASSOCIATION• Word of mouth publicity
• In-store advertisements
• Social media such as twitter, facebook
• High-quality, wholegrain, natural ingredients• Non-GMO commitment and no preservatives
• Expensive compared to competitor products, luxury good
• Local roots as small business in small city
BUDGET
During our visit to Erin Baker’s Wholesome Baked Goods on January 28th, 2016, we asked CEO Rob McCormack for details about the budget. Unfortunately he refused to share this with us, only stating it was “a lot”(Rob McCormack.
SWOT ANALYSIS
ERIN BAKER’S SWOT ANALYSIS
Strengths Weaknesses
Unique product carrying a strong customer loyalty with a recognizable brand name in areas of distribution.
The small size of the company and a new cutting edge manufacturing facility allow for flexibility in how the product is made and internal focus.
Fast turnover of product means limited storage capital investments and higher sales.
Large growing market for on-the-go breakfast food.
Strong corporate brand and culture including charitable aspects.
Small distribution because of the logistical problem of short shelf life
Not able to work with large national retailers (Target, Wal-Mart, Costco, etc.) combined with low national brand recognition constrains size.
Small budget to spend on national advertising An inelastic good with high cost to manufacture
cause small margins
Opportunities Threats Growth in millennial buying power Ingredients inline with millennial ideals Room to increase social media presence Become more transparent about ingredients and
all natural practices Partnership with a coffee distributor (Starbucks,
Tully’s, etc.)
Substitute products Price fluctuation from using higher quality
ingredients and Food safety and the threat of Recall
Cheaper generic or Imation products Decline in breakfast sales
STRENGTHSUnique product carrying a strong customer loyalty with a recognizable brand name in areas of distribution.
▪ The breakfast cookie is unique product with few direct matching competitors creating a niche market.
▪ Identifiable as health food brand▪ According to Mintel market research firm two thirds of survey respondents requested healthy breakfast items
(Russell, 2011).
Large growing market for on-the-go breakfast food
▪ The breakfast cookie is part of a new trend of people eating more breakfast, 2.6% rise in 2011 (Russell, 2011), with less time.
▪ The breakfast bar industry is currently a $1.6 billion dollar industry (Reyes, 2003).
▪ Estimated in 2011 31 million American’s didn’t eat breakfast (“31 million,” 2011).▪ Reasons given weren’t hungry or didn’t feel like eating or drinking they didn’t have time and were too busy
(“31 million,” 2011).
OPPORTUNITIESPartnership with a coffee distributor (Starbucks, Tully’s, etc.)
▪ Coffee main component of breakfast menu (Russell, 2011)
▪ Customers come back later in the day to buy substantial foods (Russell, 2011)
▪ Easy distribution in small quantities over a region.
▪ Gain brand recognition
▪ Starbucks food revenue increased 20% over last year. (Kell, 2016)
Room to increase social media presence
▪ Currently operate a twitter, Instagram (recently added), Facebook, blog, and website
▪ According to Duggan, Ellison, Lampe, Lenhart, Madden (2015) In 2014 people 18-29, 87% on Facebook, 53% Instagram, Pinterest 34%, Twitter 37%
▪ “A successful social media campaign will increase the exposure and awareness of a brand and create more buzz on social media sites, which will lead to a greater probability of a product being chosen by consumers.” (Liu & Lopez, 2014)▪ “For example, after the Coca-Cola Company initiated its “Share A Coke” social media campaign on Facebook in 2011, which gave
people the chance to order personalized Coke bottles through a Facebook app, the traffic on the Coke Facebook site increased by 870 %. This noteworthy social media campaign earned a total of more than 18 million media impressions and led to a 7 % increase in sales” (Moth, 2013)
WEAKNESSESNot able to work with large national retailers (Target, Wal-Mart, Costco, etc.) combined with low national brand recognition constrains size.
▪ Not working with major retailers such as Target and Wal-Mart
▪ Cannot achieve large-scale distribution that leads to nationwide brand recognition.
▪ Limits their growth and size.
Small budget to spend on national advertising
▪ Small marketing budget, less than a one million dollars (Reyes, 2003) a year limits their ability to do traditional national marketing plans.
▪ Unable to gain foothold in local and national retail stores. ▪ According to Grigsby-Toussaint, Moise, Greiger (2011) in a 2008 cross-sectional survey of 118 food stores
conducted in four Midwestern cities in the United States revealed 82% of food stores surveyed carried products marketed to kids via the internet or TV. 76.9% of those stores carried fruit and cereal bars marketed via the Internet and TV .
▪ Unable to build brand recognition and preference.
THREATSSubstitute products
▪ The breakfast bars easily substitute breakfast cookies.
▪ Cookies costing $1.67 are easily substitutes by cheaper brands with greater share of the breakfast bar market.
Price fluctuation from using higher quality ingredients and Food safety and the threat of Recall
▪ Using higher quality non-processed inputs causes prices to change depending on various environmental factors (weather, yield, production)▪ According to Boriss, Brunke and Kreith (2006) Plum production is highly variable…. Price fluctuation is
attributed to changed in production
▪ 2010 peanut recall saw Erin Baker’s lose $200,000 in 36 hours (Rubin, 2011)
▪ Average cost to recall for a food company is $10 million in direct cost (“Recall,” 2014)
▪ Brand damages and lost sales are the other costs of a recall (“Recall”, 2014)
CONCLUSION
CONCLUSIONWe recommend that Erin Baker…
Packaging: • Emphasize all of the healthy ingredients by clearly stating them on the package• Make compostable packages • Make Re-sealable package
Price:• Keep the price of the breakfast cookie in the $1 - $2 range• Bulk packages discounts
Promotion:• continue focusing on in-store advertising• Broad advertising campaign that is not directed towards one specific group
Target Market:• Focus Marketing effort towards…
• Males• College Graduates and people with a high school diploma or GED• People making and Average yearly income of over $30,000
Feedback:• Hotline for customer service • Quick response email service
RECOMMENDATION Distribution:
• Shorter time of delivery after cookies are ready• Focus more on distributing their cookies to retail and discount stores (like
grocery outlets, Cash & Carry, Winco…etc)
CITATIONS
2016 Wild Backpacker. (2016). Comparing Energy Bars. Retrieved February 28, 2016, from http://www.wildbackpacker.com/backpacking-food/articles/comparing-energy-bars/
31 million U.S. consumers skip break each day. (2011). Retrieved from The NPD Group: https://www.npd.com/wps/portal/npd/us/news/press-releases/pr_111011b/
The Best Supermarkets In The Country, As Ranked By 'Consumer Reports' Huffpost Taste. (2014, December 14). The Best Supermarkets In The Country, As Ranked By 'Consumer Reports' Huffpost Taste. Retrieved from TheHuffingtonPost.com: http://www.huffingtonpost.com/2012/04/02/best-supermarkets_n_1398053.html
Boriss, H., Brunke. H., & Kreith, M. (2006). Commodity profile: Plums, fresh market. Retrieved from Agricultural Resource Center, University of California-Davis: http://aic.ucdavis.edu/profiles/PlumsFresh-2006.pdf
Clif Bar and Company. (2014). Clif Bar Minis. Retrieved February 29, 2016, from http://www.clifbar.com
Duggan, M., Ellison, N. B., Lampe, C., Lenhart, A., & Madden, M. (2015, January 09). Demographics of Key Social Networking Platforms. Retrieved March 02, 2016, from http://www.pewinternet.org/2015/01/09/demographics-of-key-social-networking-platforms-2/#
Eat Natural case study. (2008). Eat Natural Case Study: Establishing a Brand in the Breakfast Cereal & Cereal Bar Markets, 1-10
Erin Baker's Wholesome Baked Goods. (2016). Erin Baker's. Retrieved February 28, 2016, from http://erinbakers.com
Global Breakfast Cereals Industry Profile. (2015). Breakfast Cereals Industry Profile: Global, 1-33.
Grigsby-Toussaint, D. S., Moise, I. K. and Geiger, S. D. (2011), Observations of Marketing on Food Packaging Targeted to Youth in Retail Food Stores. Obesity, 19: 1898–1900. doi: 10.1038/oby.2011.120RUSSELL, B. C. (2011). Wake up: TO BREAKFAST POTENTIAL. Specialty Coffee Retailer, 18(9), 24-26.
Hirschfield, M. (2007, December). Product of the Week: Erin Baker's Breakfast Cookie. Retrieved March 01, 2016, from http://www.motherearthliving.com/home-products/erin-bakers-breakfast-cookie.aspx
Hoffman, B. (2012, September 4). How 'Millennials' Are Changing Food as We Know It. Forbes. Retrieved January 28, 2016, from http://www.forbes.com/sites/bethhoffman/2012/09/04/how-millenials-are-changing-food-as-we-know-it/#420ccc35339d
Kell, J. (2016, January 22). The Surprising Reason Starbucks' Sales Jumped. Retrieved March 02, 2016, from http://fortune.com/2016/01/22/starbucks-food-sales-rising/
CITATIONS
KIND LLC. (2014). KND Breakfast Bars. Retrieved February 28, 2016, from http://www.kindsnacks.com/store/types/kind-breakfast-bars
Kurtz, D. L. (2014). Contemporary Marketing (17th ed.). Boston, Massachusetts: Cengage Learning. Liu, Y., & Lopez, R. A. (2014). The impact of social media conversations on consumer brand choices. Marketing Letters Mark Lett, 27(1), 1-13. Retrieved March 2, 2016.
McCormack, R. (2016, January 28). Erin Baker’s Marketing Class Tour. Speech presented at Marketing 380 Business Tour in Erin Baker's Wholesome Baked Goods, Bellingham.
Moth, D. (2013, August 5). 10 inspiring digital marketing campaigns from Coca-Cola. Retrieved March 02, 2016, from https://econsultancy.com/blog/63175-10-inspiring-digital-marketing-campaigns-from-coca-cola
“Recall Execution Effectiveness: Collaborative Approaches to Improving Consumer Safety and Confidence,” Deloitte on behalf of the Food Marketing Institute (“FMI”), the Grocery Manufacturers Association (“GMA”), and GS1 U.S., June 2010
Recall: The food industry’s biggest threat to profitability. (2012). Retrieved from Tyco Integrated security: https://www.tycois.com/wps/wcm/connect/ab4fd1f4-4aa2-45a3-a4f1-b91b36539e0f/LT1000-02FoodDefenseWP_Part2_hireresDigital.pdf?MOD=AJPERES
Redondo, M. R., . . . Rivas, T. (2009). Difference in the breakfast habits of overweight/obese and normal weight schoolchildren. Discrete Applied Mathematics,157(8), 1799-1805. Retrieved March 2, 2016.
Reyes, S. (2003). Baker's Seeks Oreo Status. Brandweek, 44(2), 8. Rubin, C. (2011, May 09). In the Business of Ignoring Diet Fads. Retrieved March 02, 2016, from http://www.inc.com/articles/201105/small-business-success-stories-erin-bakers-wholesome-baked-goods.html Snyder, B. (2016, February 25). Millennials Think Eating Cereal Is Way Too Difficult. Retrieved February 26, 2016, from http://fortune.com/2016/02/25/millennials-cereal-sales/