Kashi Frozen Pizza

Advertising Campaign

Christina Nguyen, Deborah McDavis, Sabe Mundolil, Nicholas Nesmith, Jonathan Nevit

Table of Contents

Executive Summary

Situation Analysis

o Industry

o Competitors

o Target Audience

o Positioning Strategy

o SWOT Analysis

Marketing Objectives

Brand Promotion Objectives

Brand Promotion Strategies

Budget

Media Strategy

Recommendations

Appendix

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Executive Summary

Main Brand Communication Objectives

Stimulate trial usage Encourage brand switching Increase Brand Awareness

Target Audience

People living a healthy lifestyle and exercising regularly. Young professionals. Families with children between 12-17 Elderly

Brand Positioning Strategy

Kashi wants to be an easy meal for active people and families who are health conscious.

Message Strategy

Kashi encourages eating healthy and staying active, while still being able to eat great tasting food.

Proposed Budget

Our Budget is approximately $3.5 million spent in a variety of creative ways.

Main Media for our Campaign

Internet Attending and Sponsoring Healthy Events Celebrity Endorsements

Proposed Scheduling

Major Events Scheduled for May 28th and September 10th. Internet Ads will run all year but heavier ads months of August, September, and

October.

Geographic Strategies

San Francisco, Austin and other active cities that host health oriented events. Internet ads will target our nationwide audience.

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Situation Analysis

Healthy Frozen Pizza Industry

Kashi frozen pizza competes in the frozen pizza industry as well as healthy meal options. The total U.S. food industry sales exceed $540 billion each year. Natural and organic food industry sales exceed $55 billion annually, increasing 10% each year since early 1990’s. The frozen pizza industry has been around for a substantial time and remains strong. There are already a few “healthy” frozen pizza options on the market such as Freschetta and California Pizza Kitchen, who are amongst some the Kashi’s competitors. We know that Kashi’s cereal and breakfast options have done well, and are still in the process of building their brand image. Kashi’s Frozen Pizza share of market is now approximately 1%.

Competitors and Market Share

Brand Name Sales (in millions) Share of Market %DiGiorno 533.5 19.8Tombstone 283.1 10.5Red Barron 249.5 9.3Freschetta 190.4 7.1Totino’s Party Pizza 162.7 6.1Tony’s 152.8 5.7Stouffers 95.2 3.5Jack’s Original 93.1 3.5Celeste Pizza for One 66.8 2.5Private Label 185.3 6.9All Others 676.6 25.2*Data from mediaflightplan.com

Kashi’s main competitors are DiGiorno, Tombstone, Red Barron, and Freschetta, who combined hold nearly 50% of the frozen pizza market. In the healthy choice pizza options, Kashi’s primary competitors are Lean Cuisine and South Beach.

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Target AudiencePrimary

People who live or want to live a healthy and fit lifestyle Young professionals/working men and women with no children Families with children between ages 12-17 Elderly

Secondary

Women Homeowners

Kashi frozen pizza users are more health conscious and more aware of their food intake. Kashi would be viewed “as a healthy choice” as compared to common brands like Tombstone and Red Barron.

Currently DiGiorno, Tombstone, Red Baron, and CPK frozen pizzas are spending between $4 million and $35 million annually on advertising.

Positioning Strategies and Ad Media Used by Main Competitors

Celeste: For the busy on the go person.

California Pizza Kitchen: Elegant and Diverse in toppings Up-scale frozen pizza. Print advertising (including internet).

Freschetta: Fresh ingredients, they are trying to achieve quality, they are targeting those who are more concerned with taste over price. Print Media including B-to-B.

DiGiorno: Those who do not want to wait on a delivery guy to bring them a pizza, but want pizza (flavor that mimics the pizza chains). T.V., Print, and Internet media, focusing more on T.V..

Healthy Choice: Healthy, yet focusing on taste. Targets health conscious people not wanting to sacrifice taste. Mainly T.V. but some internet.

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Lean Cuisine: Health conscious, typically caters to women trying to lose weight, but not lose the flavor. Majority T.V., some print and some internet.

McCain Ellios: This pizza targets children.

Mr P's: On the go person and inexpensive.

Red Baron: Consumers who will pay more for better quality and taste; typically caters to men. All advertising is done via print media.

Stouffers: Targets a high class crowd, the high end version of microwavable pizzas. Majority of media is done on T.V. but some internet.

Tombstone: Print media only.

Tony’s: Inexpensive and caters to kids.

Totino’s: Targets families looking for a frozen pizza that is fast and inexpensive.

Differences in Product Usage across Geographic Markets

Kashi Pizza is distributed nationally throughout various retail stores and grocery outlets. Although advertising will happen everywhere, there are some key markets that will receive more attention than others. Not every market is the same and the key to ideally maximize efficient advertising is to promote a product in specific targets.

Populations that are more health conscious, more progressive and environmentally conscious.

o Kashi Pizza is a health conscious product, therefore advertising in markets that share similar elements and ideas of Kashi pizza would make more sense.

Population makeup and culture in difference cities o Kashi Pizza will be available in almost all major markets.o Less emphasis of advertising will be made in sectors that already have an

established following like Chicago with their deep dish style pizza and New York City.

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o Target locations with heavier product usage would be included in cities like Denver, San Francisco, Phoenix, Seattle, Los Angeles, Fort Lauderdale and Austin. These cities are notable because they tend to rank in America’s top 10 most healthy cities. We can see a drop off in product usage in cities that rank in the unhealthiest cities like Memphis, Houston, New Orleans, and Birmingham. These cities tend to go towards fast food and fried meals which don’t fall in Kashi’s product line.

o Positive correlation between healthier cities and Kashi consumers when highlighting product usage across geographic markets.

SWOT Analysis

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Strengths

Kashi uses all natural ingredients in their pizza; other companies don’t provide this.

Kashi has an established name in the all-natural food industry. Kashi is a healthy and all natural product.

Weaknesses

Kashi has not built as much brand recognition as other frozen pizza companies.

Kashi is not in the top ten sales of frozen pizza companies. Kashi is facing strong competitors with large customer bases.

Opportunities

Natural and organic food sales account for an estimated 10% of total food sales in the U.S.A today.

Natural and organic food industry sales are estimated to increase at least 10 % in the current year.

Kashi has only used the internet to market their frozen pizzas; Kashi can increase television and print ads.

Kashi already has a wide variety of products that it could use to market their pizza; Kashi could use include coupons in their current top selling products to encourage customers to try the frozen pizza.

Threats

Other healthy products like Lean Cuisine. Kashi has a smaller budget, and less money to spend on advertising than

other frozen pizza companies.

Marketing Objectives

Goal: increase sales 11% to $40 million

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o Kashi sales for 2010 were approximately $36 million. The category sales for 2010 were about $2.7 billion all together.

Budget: $3-5 million

Brand Promotion Objectives Increase brand awareness

Stimulate trail use

Encourage brand switching

Brand Promotion StrategiesOur primary strategy is to sponsor and be a part of Health and Fitness related events, as well as more “progressive” events primarily located in the California area, Florida, and cities with a high density in college students/young professionals. These events are to create brand awareness, encourage brand switching, and stimulate trial use. At these events Kashi will be providing samples of Kashi pizza and coupons, as well as informing consumers of the health benefits of choosing Kashi.

1. Sponsor and host 2 major 5k/10k walks/runs Kashi will incur all costs for these two events

i. San Francisco, California (target: everyone) ii. Austin, Texas (target: progressive people, college students, young

professionals)

2. Participate and help sponsor Health Related Events (Marathons, 5ks, 10ks) as well as Green/Progressive Events

Some events will include:i. Dallas, Texas: Inaugural Rock 'n' Roll Dallas 2010 9,251 (largest

inaugural Texas half-marathon) (target: everyone)

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ii. Seattle, Washington: Seattle Children’s Kids Marathon (target: children and parents)

iii. Los Angeles, California: Go Green Expo (target: everyone)iv. Winter Park, Florida: Run for the Trees (target: elders)

3. Have Jillian Michaels tweet about Kashi a few times on Twitter.com

Jillian Michaels is a well-known health and fitness expert This will create brand awareness and increase brand image

4. Print coupons on existing Kashi cereal products Kashi Brand is best known for its line of breakfast related food, such as

natural cereals, snacks, crackers, and frozen waffles. Kashi cereal would be the best option to promote this strategy because it is the best-selling Kashi product.

We feel that the Kashi’s umbrella branding campaign “Seven whole grains on a mission” should not be used for this brand extension. We feel that the campaign slogan should be kept to Kashi’s current products that are more breakfast and snack related. Frozen pizza is viewed more as a main meal and to extend the slogan to Kashi pizza would be excessive.

*Sample ads in the appendix

Budget

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Budget ~$3.5 million

Sponsored Events in San Francisco and Austin $1 million total

i. Print flyers and distribution

ii. Have local news channels advertise our main events over a time

span of a month during the morning and evening news

iii. Print in local newspaper

Participation in other events as secondary sponsors fee $1 million

Jillian Michael fee $100,000

Internet $1 million

i. Couponing blogs (mydallasmommy.com)

ii. Search engines (google, yahoo, bing)

iii. Health and fitness sites (fitness.com, shape.com,

healthandfitnessmag.com, womensheatlth.com)

According to mediaflightplan.com, Kashi currently has 1% SOM in the frozen pizza category. We are trying to double that, but we have taken into consideration that Kashi Frozen Pizza is still a new product with no brand equity, awareness, or image besides the fact that it is a Kashi brand. It is still in the testing phase; therefore we purposely chose not to use televised commercials at this moment. Our approach is more based on creating brand awareness.

The two hosted events have been broken down in Tables 1 & 2 in the Appendix.

We have allocated $1,000,000 towards participation in other events as a secondary sponsor.

As an incentive for potential partnership with Kashi Frozen Pizza, we will pay $100,000 to Jillian Michael to tweet positively about Kashi on Twitter.com a few times. Depending on how well that strategy goes, we will seek into working with Jillian Michael on a larger scale and fee for her.

Media Strategy11

We primarily want to stick with the use of internet. Kashi already focuses on this medium as its main source of advertisement, and we are expanding the budget to help produce new consumers (29% of total budget). These ads will run year round, and focus more in the fall.

Also we are using print media in the form of sponsoring health and fitness events. We will print fliers that will let our consumers not only know when and where the event is being held, but also more about our product. Along with this we are asking the local TV. stations to incorporate our even in their morning and evening news. Last but not least we will request an article in the local paper to be printed before the event (29% of total budget).

Tying into our sponsorship of an event, we hope to participate in several scheduled events to spread our name about (29% of total budget).

We also hope to use social media like “twitter”, using Jillian Michael to tweet about our product. If this is successful we will prolong our relationship with her in an attempt to make her the official spokesperson for Kashi Frozen Pizza (2.9% of total budget). These tweets will be spread out over the entire year.

Recommendations

Our recommendations for Kashi Frozen Pizza is to expand on its internet advertising foremost, while also sponsoring events within large local natural food customer bases in order to promote brand awareness, stimulate trial use, and encourage brand switching. We are targeting an audience who already consume healthy food and providing them with a better tasting alternative. Natural and organic food consumption is a new trend that is increasing 10% each year since early 1990’s. Most consumers in this market have not yet become brand loyal and are still deciding what food and brands fit into their lifestyle. We believe targeting this audience (families who have children between 12-17 years old, single working men and women, elderlies, and moderately active and progressive people) will rapidly expand our market share. Our campaign targets people who are eating healthy, exercising regularly, and parents who want their children to make healthy choices.

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Appendix

Table 1

Table 2

Internet Budget

Health and fitness WebsitesFitness.com $ 150,000.00Shape.com $ 135,000.00

Healthandfitnessmag.com $ 20,000.00Womenshealth.com $ 150,000.00

Sub-total $ 455,000.00Search Engines

Google $ 200,000.00Yahoo $ 150,000.00Bing $ 195,000.00

Sub-total $ 545,000.00Total $ 1,000,000.00

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Austin Event  Quantity  Cost per Unit TotalNumber of attendees 8,000

GiveawaysFood 10,000 $0.75 $7,500.00T-shirts, bags, water bottle 8,000 $30.00 $240,000.00entry fee 8,000 -$60.00 -$480,000.00Local Advertising $10,000.00 $10,000.00Cost of Event Set-up/staff $675,000.00 $675,000.00

Costs Subtotal $452,500.00San Francisco EventNumber of attendees

Giveaways 8,000Food 10,000 $0.75 $7,500.00T-shirts, bags, water bottle 8,000 $30.00 $240,000.00entry fee 8,000 -$60.00 -$480,000.00Local Advertising $10,000.00 $100,000.00Cost of Event Set-up/staff $750,000.00 $750,000.00

Costs Subtotal $617,500.00

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References

http://www.kashi.com

https://www.runraceresults.com/Secure/RaceResults.cfm?ID=RCLF2010

https://www.runraceresults.com/Secure/RaceResults.cfm?ID=RCLF2010

http://www.womenshealthmag.com

http://www.eatingwell.com

Kashi files in e-learning

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