Pepperidge Farm - TimTams Media Plan

Pepperidge Farm - TimTams
Media Plan
ADPR 3120
Skylar Russell, Teresa Saker, Taylor Fraser and Lindsay Van Pelt
Table of Contents
Executive Summary............................................................................................................................3
The Problem.........................................................................................................................................4
Situation Analysis..............................................................................................................................5
1
Target Research.................................................................................................................................5
Market Information..........................................................................................................................12
Creative and Media Background.....................................................................................................16
Media Mix..........................................................................................................................................16
Share of Voice....................................................................................................................................19
SWOT Analysis & Problem/Opportunities Identification.............................................................22
The Creative Brief.............................................................................................................................24
Marketing/Objectives........................................................................................................................25
The Solution.......................................................................................................................................26
Media Objectives...............................................................................................................................26
Reach, Frequency, and GRPs...........................................................................................................26
Media Mix...........................................................................................................................................27
Media Vehicle Mix.............................................................................................................................28
Scheduling...........................................................................................................................................32
Flowchart ...........................................................................................................................................34
Creative Strategy................................................................................................................................36
Budget Summary................................................................................................................................37
Evaluation............................................................................................................................................39
Cited Works.........................................................................................................................................42
Executive Plan Summary
Pepperidge Farms has been a growing company both in the United States and around
the world since the 1950’s. After being sold to the Campbell Soup Company and becoming a
part of Campbell’s Global Baking and Snacking Division, Pepperidge Farms is now part of a
company with $8 billion in annual revenues. They aspire to gain a younger demographic in the
2
United States to purchase their cookies while still maintaining their current consumers. TimTams
will be the product to attract this younger age bracket, since through demographic studies
TimTam cookies attracted a younger target group than any of their other cookies in the
Australian market. Pepperidge Farm is looking to launch a national campaign to introduce the
Australian TimTam cookie into the United States market, and they are looking to achieve an
overall brand growth of 12% with significant growth in all categories. The two main problem
facing Pepperidge Farms is that the younger demographic views Pepperidge Farms cookies as a
luxury treat, and that the TimTam cookies are a new product in the United States. Our media
plan will demonstrate how we will meet our advertising goal of bringing awareness to the brand
and to also change the perception of how Pepperidge Farms is viewed by the younger
demographic. It also will show how we plan to reach the marketing goals of a 12% increase in
growth by the end of 2014, and to increase sales to a younger demographic. We have set a
budget of 20 million based on past ad spending by the company, 4 million of which has been
allocated to six months of end cap displays.
Our Target Audience is 18-24. This age bracket is very social. They enjoy interactivity
and online engagement. Thus we have decided to focus our media vehicles mostly in internet and
non-traditional media such as YouTube ads, social media, banner ads, billboards and bus
displays. Magazines and television will also be used to maintain a higher reach and to maintain
current consumers. We will portray the TimTams as being a fun and delicious group snack item
by emphasizing the phenomenon of the “TimTam Slam” where both ends of the cookie are bit
off, making the treat a straw that one can drink hot beverages with (that is until it melts!). Humor
and images of young adults having fun will be seen through the campaign. Magazine inserts will
be the primary way of maintaining the current older demographic, specifically mothers who will
3
buy the cookies for their kids. End caps and shopping carts ads will help with point of purchase
reminders.
The timing of the media plan will be a pulsing schedule, which peaks during the three
top sales months of September, December and February. This occurs because of the back to
school season, the Christmas/holiday season, and Valentines Day. The months before these peak
sales months will also have higher reach, frequency and GRPs. Through this media strategy the
TimTam brand will become a household name, while also increasing overall Pepperidge Farm
awareness and growth.
The Problem
Pepperidge Farms aspires to gain a younger demographic in the United States to purchase their
cookies while still maintaining their current consumers. They are hopeful that TimTams will be
the product to attract this younger age bracket, since through demographic studies TimTam
cookies attracted a younger target group than any of their other cookies in the Australian market.
Pepperidge Farm is looking to launch a national campaign to introduce the Australian TimTam
cookie into the United States market. Pepperidge Farm is looking to achieve an overall brand
growth of 12% with significant growth in all categories. In order to boost performance in the
Baking and Snacking Division of Campbell, Pepperidge Farm is looking to work with
international experts to mass market TimTam, “Australia’s Favorite Cookie, in the United States.
Situation Analysis
Target Research
Demographic Analysis (from MRI data provided)
Pepperidge Farms aspires to gain a younger demographic to their cookies while still
maintaining it’s current consumers. TimTams will be the product to attract this younger age
4
bracket, since through demographic studies TimTam cookies attracted a younger target group
than any of their other cookies. According to the MRI data, Ages 18-34 have the highest
propensity to purchase enrobed cookie bars, which are much like TimTams.The index for 18-24
year olds is above average at 157, and the 25-34 age group is also above average at 128. The
Index scores continue to decrease as the age bracket moves to the older demographic. The index
for 18-25 year old who buy Pepperidge Farms cookie is 95, while the index for fudge covered
cookies is above average with 149, which proves that despite PF’s target audience not currently
buying TimTams, there is a market for chocolate covered cookies. Despite PF looking to focus
on a younger demographic, across the board they are above competitors in the 45-54 year old age
bracket for cookie sales.Though overall the 18-34 year old demographic has a high propensity to
purchase enrobed cookies, when looking specifically into Pepperidge Farm, this demographic
has below average purchasing patterns with the 18-24 demographic at 95 ,and the 25-34
demographic at an index of 83. While this data is not currently where it should be, the amount of
young purchasers specifically for enrobed cookies is encouraging when looking to enter
TimTams into the market.
When considering gender, women have a higher inclination of buying both TimTam
Cookies and Pepperidge Farm Cookies. Women’s index for enrobed cookies is 109 while the
men’s index was only 90. Pepperidge Farm is at a 113 index with women and with men it is a
very low 72. From this, it can be concluded that the media mix should market itself toward
women (who are the main purchasers of the product), with a focus on the younger demographic.
In terms of income, the higher the household income rises, the less likely they are to buy
fudge covered cookies; an index of 148 is seen with income <$10,000 and an index of 81 with
incomes of $750,000-999,999. However, the higher income of 100,000 is more likely to
5
purchase Pepperidge Farm cookies (index 142) while lower incomes do not. With all of this in
mind, targeting should keep in mind that if they want to take consumers away from competitors,
they have to market to lower income HH who like fudge or chocolate covered cookies.
Pepperidge farms does have a cheaper option for TimTam cookies than its competing brand of
Arnott’s TimTams (Arnott's Original vs Pepperidge Farm TimTams-video) which is a strength.
The Median income of those buying Pepperidge farms is 66,484. However, the median income
for fudge and chocolate covered cookies is lower (43747 and 47719 respectively).
Parents have a higher index than those who are single with an index of 120 for fudge
covered cookies and 127 for chocolate covered. Another indicator is the index for fudge covered
cookies with a very high index of 336 for HH with 5-7 children.
The Middle Atlantic (147) and new England Regions (154) have a noticeably higher
index than those in other regions. Farming, Fishing and Forestry occupations have the highest
index (236) for buying Pepperidge Farms Cookies
Psychographic Research
● When it comes to purchasers buying something that they want so much that they will buy
it on credit rather than wait, compared to the fudge, chocolate covered, and heavy cookies
categories Pepperidge farm is doing better by 9%, 14%, and 7% respectively.
● When purchasers are purchasing based on price they tend to lean slightly towards
Pepperidge farm by no more than 2% compared to fudge, chocolate covered, and heavy
cookies.
● Purchasers who are attracted to sites offering free shipping are more likely to lean
towards Pepperidge farm cookies rather than fudge, chocolate covered, and heavy
cookies
6
● While Pepperidge farm cookies is 4 % lower than fudge cookies when it comes to
purchasers who are spenders rather than savers, the brand’s index is relatively high at 123,
which is 6% and 13% higher than the chocolate covered and heavy cookies category
respectively.
● Purchasers who strongly agree that it is imperative sales people be knowledgeable about
the product they sell are more likely to purchase Pepperidge Farm than other cookie
categories, most of whom rank below the strong index percentage of 100.
● Purchasers who only use coupons for the brands they usually buy, are 7%, 4%, and 2%
more likely to lean towards purchasing Pepperidge Farm cookies than fudge, chocolate
covered, and heavy cookies. (Percentages are respectively listed)
● Purchasers who stick to brands they like are 5% more likely to purchase Pepperidge Farm
cookies
● When it comes to Purchasers paying more for products that are made by companies they
trust, Pepperidge Farm is 14% more likely to be the consumers cookie brand of choice
● Purchasers who are willing to pay more for products that are environmentally safe are
24% more likely to consume Pepperidge Farm
● Purchasers who are very interested in fine arts are 34% more likely to be consumers of
Pepperidge Farm
● Purchasers who typically drink wine with dinner are 42% more likely to be consumers of
the Pepperidge Farm cookie brand
● During a typical month, over 27% of shoppers will experiment with different brands.
Target Market- Adults 18-24
7
● Ages 18-24 have the highest propensity to purchase enrobed cookie bars, which are much
like TimTams, according to the MRI data. The index for 18-24 year olds was still above
the average at 157, while the 25-34 age group also had a high propensity to purchase with
an index of 128.
● Though overall the 18-24 year old demographic has a high propensity to purchase
enrobed cookies, when looking specifically into Pepperidge Farm, this demographic has
below average purchasing patterns with the 18-24 demographic at 95. While this data is
not currently where it should be, the amount of young purchasers specifically for enrobed
cookies is encouraging when looking to enter TimTams into the market.
● It is also necessary to keep in mind that while PF is looking to focus on a younger
demographic. Across the board they hold above competitors in propensity to consume by
45-54 year olds.Women also have an above average propensity to purchase enrobed
cookies with an index of 109 and, in particular, Pepperidge Farms has an index of 113
with women. In contrast men have an index of 90 when it comes to enrobed cookie bars
which is below average.
8
This Nielson Data graph shows how prevalent the internet has become to those in the United
States. Mobile apps have risen 120%, mobile web has increased 22%, and PC use has gone up
4%. This leads to a total of a 21% increase in total internet usage. Another important fact to gain
from this graph is that 17% of the time these users spend on the internet is on facebook. 20% of
their time on PCs and 30% of time on their phone is on a social networking site.This information
will drive us to center a large majority of advertising efforts to online media.
9
This chart displays the number of unique users that visit specific social media and social
publishing sites. It is evident that Facebook is the largest competitor when it comes to the most
unique visitors., but Google+ has grown by 80% and Pinterest by a massive 1047%, which
indicates a promising vehicle to advertise in. This is an insight that will be used in our Media
Strategy.The 2 charts below go even further to show where the 18-24 demographic spends most
of their time and also what genders prefer certain sites. Since the MRI data continuously showed
women to be the primary buyers of cookie goods, targeting sites with more women than men will
be part of our strategy.
10
Market Information
11
Industry Sales
Pepperidge Farms competes in an industry with a high amount of brand traffic. There are twenty
competitors that pose a strain for this brand, including Private Label, Nabisco, and Lofthouse
Foods. Sales are very much affected by seasonal sales, the peak months of which are September,
December and February. This occurs because of the beginning of school, the start of the holiday
season, and Valentine’s Day, all of which are high cookie consumption points. Last year 5.2
billion dollars were spent in the cookie category.
Category Competitors
The top competitors in the cookie category in terms of sales include Private Label, Nabisco
Chips Ahoy, Nabisco Oreo, Nabisco Double Stuffed Oreo, Lofthouse Foods, and Little Debbie.
Private Label
Private Label is Pepperidge Farm’s number one competitor when it comes to in sales revenue.
They pull in approximately $644,900,000 in dollar sales. That is $549,600,000 more in revenue
12
than Pepperidge Farm Nantucket and $552,800,000 more in revenue than Pepperidge Farm
Milano Cookie. Private Label dominates cookie sales, with double the revenue of the second top
competitor.
Nabisco Chips Ahoy
Nabisco Chips Ahoy also proves to be a top competitor of Pepperidge Farm with the second
highest dollar sells in the cookie brand industry. They pull in approximately $316,300,000 in
dollar sales. That is $221,000,000 more in revenue than Pepperidge Farm Nantucket and
$224,200,000 more in revenue than Pepperidge Farm Milano Cookie.
Nabisco Oreo
Nabisco Oreo is the third top competitor of Pepperidge Farm, pulling in $301,000,000 dollar
sales. That is $205,700,000 more in revenue than Pepperidge Farm Nantucket and $208,900,000
more in revenue than Pepperidge Farm Milano Cookie.
Nabisco Double Stuffed Oreo
Nabisco Double Stuffed Oreo is the fourth highest cookie brand when it comes to dollar sales,
pulling in $153,500,000 in revenue. That is $58,200,000 more in revenue than Pepperidge Farm
Nantucket and $61,400,000 more in revenue than Pepperidge Farm Milano Cookie.
Lofthouse Foods
Lofthouse Foods pulls in $134,800,000 in dollar sales. That is $39,500,000 more in revenue than
Pepperidge Farm Nantucket and $42,700,000 more in revenue than Pepperidge Farm Milano
Cookie.
Little Debbie
Little Debbie is the competitor directly in front of Pepperidge Farm Nantucket when it comes to
dollar sales. They pull in approximately $111,000,000 in revenue. That is $15,700,000 more in
13
revenue than Pepperidge Farm Nantucket and $18,900,000 more in revenue than Pepperidge
Farm Milano Cookie.
According to the Kantar competitive data, when it comes to advertising spending in the cookie
industry from 2010-2011, Keebler Foods Co. and Mondelez Intl. are Pepperidge Farm’s two top
competitors.
Mondelez Intl.
Mondelez Intl. spent $133,958,000 on advertising from 2010-2011, making them Pepperidge
Farm’s number one competitor when it comes to advertising spending. Mondelez Intl. spent
$106,532,100 more in advertising spending than Pepperidge Farm.
Keebler Foods Co.
Keebler Food Co. spent $29,051,200 on advertising from 2010-2011, making them the second
leader in advertising spending. Keebler Foods Co. spent $1,625,300 more in advertising
spending than Pepperidge Farm
14
Pepperidge Farms Sales
Milano Brand Sales totaled $92.1 million and is ranked 8th among the top ten cookie brands.
Sales
for other Pepperidge Farm cookie brands (excluding Milanos) reached an estimated $95.3
million. Leading to a total of 187.4 million dollars in revenue for Pepperidge Farms cookies.
The launching of the TimTam product to America is planned for next year and is expected to
bring in an additional 18 million in revenue for Pepperidge Farms.
Product Description
Pepperidge Farms has been a large competitor in the cookie business since the 1950’s, providing
fancy European style cookies, such as the Milano cookie, that have proved popular in the United
States. They carry nine types of cookies, and have had sales of 187.4 million this past year. Their
TimTams are layers of crisp cookie, with rich, creamy chocolate in between, and enrobed in
mouth-watering fudge. It is best known is Australia where it has been a popular item. It is also
known for a phenomenon called “TimTam Slam” where, when the TimTam’s ends are bitten off,
a straw-like orifice forms and can be used to drink hot beverages such as coffee. Despite the
consumer group for Pepperidge Farms cookies being on the lower end, the estimated
demographic for chocolate covered cookies is 6,220,000, which is a promising sector to bring in
new customers to the TimTam brand.
Creative and Media Background
Media Mix
2010 Pepperidge Farm Media Mix
PEPPERIDGE FARM ADVERTISING EXPENDITURE $(000)
15
TIME
PAREN
SUBSIDIAR
PERIO
T
Y
Campbell
Pepperidge
Soup Co.
Farm
TOTAL
CABLE
MAGS
TV
SUNDAY
US INT-
MAGS
DISPLAY
D
2010
12,225.90
598.9
9,989.1
1,456.40
181.60
0
PEPPERIDGE FARM MEDIA MIX
TIME
PAREN
SUBSIDIAR
PERIOD
T
Y
2010
Campbell
Pepperidge
Soup Co.
Farm
TOTAL
CABLE
MAGS
TV
100%
4.5%
81.7%
SUNDAY
US INT-
MAGS
DISPLAY
11.91%
1.49%
16
According to the Kantar Competitive data, in 2010, the greatest portion of Pepperidge Farm’s ad
spending is done in magazines (81.7%). The second leading spending is in sunday magazines
(11.91%), followed by cable television (4.5%) and US int. displays (1.49%).
2011 Pepperidge Farm Media Mix
PEPPERIDGE FARM ADVERTISING EXPENDITURE $(000)
TIME
PARENT
PERIOD
2011
SUBSIDIAR
TOTAL
Y
CABLE
MAGS
TV
Campbell
Pepperidge
Soup Co.
Farm
15,200
2,431.50
US INTDISPLAY
12,766.50
2.1
PEPPERIDGE FARM MEDIA MIX
TIME
PARENT
PERIOD
2011
SUBSIDIAR
TOTAL
Y
Campbell
Pepperidge
Soup Co.
Farm
CABLE
MAGS
TV
100%
16%
US INTDISPLAY
83.99%
0.01%
17
There were some changes made in Pepperidge Farm’s media mix the next year. In 2011, the
majority of their ad spending was still focused on magazines, however no money was spend on
sunday magazines. Cable television spending increased by 11.5%. Spending was still made on
US internet displays, however it was a miniscule amount in terms of overall ad spending.
2010-2011 Media Mix Analysis
Depicted in the charts and graphs on pages 14-16 are the media mixes for all Pepperidge Farm
cookie brands totaled in year 2010 and year 2011. It is important to note that for all Pepperidge
Farm products currently marketed in the United States, advertising expenditures were limited to
magazines, cable television, and US Int-Displays. This type of advertising expenditure across all
Pepperidge Farm brands is part of what has led Pepperidge Farm to achieve popularity amongst
their products with an older demographic, and consequently to fail in attracting a younger
demographic. This is important to note when trying to determine a solution.
Share of Voice
18
2010 Pepperidge Farm Share of Voice
According to the Kantar Competitive data, the total ad spending in 2010 amongst companies that
produce cookie products was $91,785,400. Three subsidiaries (Pepperidge Farm Inc., Keebler
Foods Co., and Mondelez Intl.) make up the majority, $87,732,500 (96%), of this ad spending.
The following two charts show Pepperidge Farm’s advertising expenditures and share of voice in
the media categories that they spent money on in comparison of their two biggest competitors in
ad spending, Keebler Foods Co. and Mondelez Intl., in the same media categories. In all nonlisted categories, Pepperidge Farm has $0 of advertising expenditures and therefor 0% share of
voice. This does not mean however, that Keebler Foods Co. and Mondelez Intl. did not have
advertising expenditures across other media.
ADVERTISING EXPENDITURES OF TOP 3 AD SPENDERS $(000)
SUBSIDIARY
TOTAL
CABLE
MAGS
TV
Pepperidge Farm
SUNDAY
US INT-
MAGS
DISPLAY
12,225.9
598.9
9,989.1
1,456.4
181.6
9,303
4,411.4
0
0
0
Mondelez Intl.
66,203.9
18,185.5
20,105.6
2,799
1,314.1
TOTAL CATEGORY
91,785.4
23,195.8
31,546.2
4,235.4
1,509.9
Inc.
Keebler Foods Co.
SHARE OF VOICE (TOP 3 AD SPENDERS)
SUBSIDIAR
TOTAL
Y
Pepperidge
CABLE
MAGS
TV
13.32
2.58
31.66
SUNDAY
US INT-
MAGS
DISPLAY
34.39
12.03
19
Farm Inc.
Keebler Foods
10.14
19.02
0
0
0
72.13
78.4
63.73
66.09
87.03
100
100
100
100
100
Co.
Mondelez Intl.
TOTAL
CATEGORY
As the chart above shows, Pepperidge farm had a 13.32% SOV in overall ad spending, second
only to Mondelez Intl. They had a 2.58% SOV in cable tv, a 31.66% SOV in magazines, a
34.39% SOV in Sunday magazines, and a 12.03% SOV in US Int-Display.
2011 Pepperidge Farm Share of Voice
In 2011, Pepperidge Farm Inc., Keebler Foods Co., and Mondelez Int. made up 92.3% of all ad
spending. Keebler Foods Co. moved into second place in overall ad spending, pushing
Pepperidge Farm into the third highest spot. The most obvious change in Pepperidge Farm’s
advertising expenditures is the exclusion of Sunday magazines. A significantly greater amount
was spent on cable TV advertising. The following two charts show Pepperidge Farm’s
advertising expenditures and share of voice in comparison to the other two leaders in ad
spending, Keebler and Mondelez, across Pepperidge Farm’s media mix.
ADVERTISING EXPENDITURES OF TOP 3 AD SPENDERS $(000)
SUBSIDIARY
Pepperidge Farm
TOTAL
15,200
CABLE TV
2,431.5
MAGS
12,766.5
US INT-DISPLAY
2.1
Inc.
20
Keebler Foods Co.
19,748.2
4,664.1
6,972.6
12.6
Mondelez Intl.
65,875.5
17,429.6
11,281.5
3,085.3
TOTAL
109,286.2
26,304.9
31,241.2
3,249.5
CATEGORY
SHARE OF VOICE (TOP 3 AD SPENDERS)
SUBSIDIARY
TOTAL
Pepperidge Farm
CABLE TV
MAGS
US INT-DISPLAY
13.9
9.2
40.9
0.06
Keebler Foods Co.
18.1
17.7
5
0.4
Mondelez Intl.
60.3
66.3
36.1
94.9
TOTAL
100
100
100
100
Inc.
CATEGORY
As the chart above shows, Pepperidge farm had a 13.9% SOV in overall ad spending, third to
Mondelez Intl. and Keebler Foods Co. They had a 9.2% SOV in cable tv, a 40.9% SOV in
magazines, a 34.39% SOV in Sunday magazines, and a 0.06% SOV in US Int-Display.
Pepperidge Farm’s SOV in overall spending, cable TV, and magazines all increased. Their SOV
in US Int-Display, however, decrease.
Share of Voice Analysis
It is important to look at Pepperidge Farm’s total advertising expenditures in comparison to the
the total advertising expenditures of their main competitors to determine where they stand as a
21
company when it comes to overall ad spending. As shown in the graphs and charts on pages 1820, Pepperidge Farm holds 0% SOV across all media excluding magazines, cable tv, and US intdisplays. Their competitors who have achieved success in marketing their brands to a younger
demographic, however, hold higher share of voice percentages across other forms of media.
SWOT Analysis & Problem/Opportunities Identification
Strengths:
● Pepperidge Farm has been around for 76 years and is now a part of Campbell, a 143 year
old company with $8 billion in annual revenues.
●
The sandwich cookies are popular with 47% of households.
● Within the Principle Shoppers, chocolate covered cookies have a high index of 137 for
the desired target market (18-24) while enrobed cookies are popular with that same
market with an index of 157.
●
TimTams have thrived in Australia with a “cult-like” status, especially among the
younger demographics.
Weaknesses:
● The index for those who buy Pepperidge Farm cookies in the younger demographic is
low
● The TimTam cookie is a new product in the United States.
●
Pepperidge Farm cookies are perceived as an expensive brand which is why an older
demographic is currently buying more than our target market (18-24).
● The evidence is in the index scores: the index for Pepperidge Farm consumers who are
45-54 is 125 whereas the index for those consumers who are 18-24 is 95.
Opportunities:
22
● Cookie sales stay relatively stable throughout the year.
●
Studies show that adults from 18- 44 enjoy trying new types, flavors and brands of
cookies and are a key category to the target market.
● Data from Snack World indicate that during a typical month, 27% of consumers are
willing to try a new brands.
● Social media sites such as Facebook are accessible to the target market; TimTam
currently has 21,277 likes on Facebook.
Threats:
● There are four major competitors that are above Pepperidge Farms in Sales (Private Label,
Nabisco, Lofthouse Foods, Little Debbie).
● Mondelez Intl., the top spender in advertising from 2010-2011, spent $106,532,100 more
in advertising than Pepperidge Farms.
● An increase in commodity materials, such as flour, may cause prices of the cookies to go
up and demand to go down.
The Creative Brief/Advertising Objectives
Key Fact
Pepperidge Farms is an established brand with over nine cookie types that desires to successfully
introduce their TimTam cookie to the U.S. Market.
Problem
The TimTam cookie is a new product in the U.S. and requires an increase in awareness.
Pepperidge Farms also has the stigma of being an expensive item which deters their desired
younger market from buying the product.
Objectives
23
-To increase awareness of the Time Tam brand in the United States
-To bring in a younger demographic to the Pepperidge Farms brand
-To change the image of Pepperidge Farms being too expensive for the younger consumer
-To increase Pepperidge Farms cookie sales by 12%
Target Market
The Target market includes all men and women from the ages of 18-24 years old in the United
States of America. This is an approximate group of 293,77,000.
Promise
To increase awareness of the TimTam Cookie in the United States, in particular to a young
demographic, while increasing overall cookie sales for Pepperidge Farms Brand.
Support
-Pepperidge Farms is a well-known cookie brand that performs well, they have a market share of
3.6%, with last year’s sales being 187.4 million, and the whole cookie category being 5.2 billion.
-Milano Cookie Sales alone massed 92.1 million in revenue last year.
-During a 6 month test in Tucson, Arizona, those stores with display end caps of Pepperidge
Farm Cookie (including TimTams), experiences a 6% sales increase
-During this same 6 month test, when ad spending was in action, Pepperidge Farms saw a double
digit sales increase with TimTam as top competitor.
-TimTam cookies were a success in Australia and New Zealand achieving, and also created
social media publicity.
Mandatories:
Brand Name
Logo
24
Company Website
Slogan
Marketing Objectives
-Pepperidge Farms expects a 12% rise in total sales from last year's cookie sales of 187.4 million.
-There is an expected 18 million in revenue for TimTam sales.
-Nine percent of consumer growth must come from competitors since the cookie category is not
expected to grow more than 3%.
- 25% brand recall for TimTam, and an increase in sales of 30% during peak seasons
(September, December, February) achieved by 4 million dollars in end cap displays in 70% of
the nation’s grocery stores.
- An increase of young consumers in the 18-24 age group
The Solution
Media Objectives
Reach, Frequency, and GRPs
National
Goals
Months
Reach
Freq
GRPs
July
10.0
1.0
25.0
August
20.0
3.0
30
25
September
80.0
6.0
400
October
40.0
2.0
20
November
50.0
3.0
40
December
80.0
6.0
400
January
50.0
3.0
40
February
80.0
6.0
400
March
40.0
2.0
20
April
40.0
3.0
25
May
30.0
3.0
15
June
30.0
3.0
15
National
376
Totals:
GRPs
Media Mix
TIME
SUBSIDIARY
BRAND
PERIO
TOTA
CABLE
L
TV
MAGS
NON-TRADITIONAL/
INTERNET
OUT OF HOME
D
2014
Pepperidge Farm
TimTam
100%
18.2
12.2
42.5
42.5
26
Media Vehicle Mix
Magazines
Magazines will be used in the campaign as a means to keep the current, older demographic. A
trend realized in our research was that a majority of Pepperidge Farm consumers are women.
Thus women’s magazines will be a specific vehicle used. Parenting and Childhood magazines,
such as Parenthood, American Baby, and Good Housekeeping will be used because of their high
circulation rate and popularity. This will help mothers see the TimTams and possibly buy it for
their kids lunch. General Interest Magazines will also be used to target those consumers who are
not just women and those who do not have a family. Examples would be Entertainment
Magazine and Readers Digest. Four color magazine inserts will be used consistently throughout
the campaign and have more during peak sales months.
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Television
Television is used in our advertising strategy due to the fact that it is still very much popular
among the target audience, 18-24 year olds. A television campaign that is used in conjunction
with other mediums, such as internet, increases the frequency with which the target market
comes in contact with the brand. In using this medium advertisements will run close before and
during peak seasons, November to February, since these are months when indulgence is higher
than usual due to the fact that they are considered holiday months. Advertisements that are
creatively, audibly, and visually appealing are to run on channels such as MTV (index of 231)
and stations with adult humor such as Family Guy. Adult Swim (271) and Comedy (161) have
indexes that exceed the baseline and reach out to a younger audience.
End Caps
Pepperidge Farms has already made a deal with 70% of both local and national supermarkets to
have Pepperidge Farms end caps up for the year; this takes up 4 million dollars of the ad
spending.
It will be used continuously during the 6 months of September through February so as to keep
awareness high during the peak sales months and the time in between. This is important for Tim
Tams because they are a new addition to the United States. The end caps increase exposure of
the product and encourage people to test the product. When endcaps were used during the trial
run, a 6 percent increase was seen compared to stores with no end caps. They will be placed in
the ice cream/cooler sections and also in the coffee/hot beverage section to encourage cross
promotion. People will go to buy ice cream or coffee and decide they want TimTams to go with
it once they see the end cap.
Internet
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We have decided to use Internet is a large part of our Media plan because internet is one of the
least expensive ways to reach younger consumers, who spend much of their time connecting on
the internet. Being in the demographic of 18-24 year old consumers, the importance cannot be
stressed enough that this is a crucial way to reach the target demographic. Specific websites that
will be the most beneficial are sites such as Facebook, Twitter, and Pinterest. Facebook is
important due to the number of unique visitors that are just in the United States. While
Facebook’s unique visitor count decreased by 4 percent, it still remains largely ahead of any
other internet sites. Twitter is also important because it allows us to get the message out in a
timely manner. Twitter has also seen an 80 percent increase in unique visitors, making it a
promising advertising area. Finally, Pinterest is the site with the most potential, having seen a
growth of 1047 percent, making it an area most promising to advertise in. It is also important due
to the fact that it allows the brand to connect the Tim Tam to the Tim Tam Slam phenomenon, as
well as provide the opportunity, through pictures, to show the consumer how to participate in the
Slam.
Banner ads on both targeted and sponsored sites will help build the recognizability. Despite a
low click through rate of 2.1 % for the whole internet, this does not take into account how many
times a consumer will see the ad and place the brand in their mind for later recollection. This is
why internet plays a big role during the months in between the peak sales months; it will
maintain awareness for those months when cookies are more readily bought. 71% of college
graduates have clicked on a banner ad in 2011, and 58% of those age 18-24 have clicked on a
banner ad in 2011. Interactivity with rich media banner ads will be used where the viewer can
choose to watch the TimTam slam funny video.
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Some of the TimTam Slam videos will be chosen by a contest. Consumers will submit their own
funny TimTam Slam videos via Facebook or Youtube with a chance to win a prize and also be
featured in the ads seen on the targeted and sponsored sites. Funny screen shots of these films,
and also pictures submitted by consumers will be put on Pinterest and Twitter (via Instagram) to
create even more social buzz. A few professionally done ads will also be produced with a budget
of
50,000. They will be placed on YouTube’s “In Stream” ad options where the first five seconds of
the ad are necessary but the consumer can choose to watch the full thirty seconds in they choose.
Opt-in advertising is preferable because the price is smaller and only interested consumers listen.
These ads will continue the theme of fun-loving young adults, enjoying the TimTam Slam.
Non-traditional
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Pepperidge Farm wishes for TimTams to bring a younger demographic, 18-24 year olds, into
their brand realm. In doing that it is important to have a nontraditional launch that appeals to the
demographic. Representatives will launch the brand on college campuses across the United
States with “Slam Parties” where attendees have the opportunity to taste the cookies, interact
with the brand and participate in the “Tim Tam Slam,” the phenomenon that made the Tim Tam
a legendary cookie. This launch provides a place for the target demographic to interact with the
brand and develop brand relationships.
While the “Slam Parties” at different campuses are a way for the target market to embrace the
brand there needs to be a reminder when the demographic enters the store. With this it is the plan
to place advertisements on grocery carts where consumers are reminded of the “Slam Parties” as
well as the great tasting flavor of the cookie. Ads will also be places on transit buses that are
running in the retail trade area of TimTam cookie, and billboards in high traffic areas, which will
generate a high reach. These advertisements will run during the peak months and the months
preceding it during September to February (excluding October).
Scheduling
A pulsing schedule is what we have chosen to aid The Pepperidge Farms TimTam launch. A
higher frequency in the ads will be seen during the September (back to school), December
holidays) and February (Valentine’s Day) months will ensure that consumers will see the ads
close to the time of purchase. In the months in between the three peak months, internet banners
on both targeted and sponsored sites, as well as magazine inserts, will be the primary way of
reaching the audience. Some spots on prime time cable and daytime cable will be used in months
prior to these peak months to build awareness before purchase. Magazines will be used
continuously throughout the campaign, including general interest and women’s magazines. On
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the three peak months, there is a higher concentration on television, including prime time cable,
early fringe and late fringe. This will help gain a higher reach, which is ideal for targeting those
who are about to go to the store and buy snacks. More television spots are seen in April to
maintain awareness through the non-peak season. The 6 months of end caps (agreed to be
retailers) will be used during the months of, September, October, November, December, January,
and February. Non-Traditional Mediums, including bus displays, shopping cart ads, and
billboards, will be used during the five months of September, November, December, January and
February to raise reach and frequency during the peak months.
We will focus most advertising efforts during the three months of September, January
and February. In September, the back to school season proves to be a time where a lot of cookies
are bought for school lunches. In December, the Christmas and other winter holidays make
cookie sales rise, especially with the many holiday parties going on. In February there is
Valentine’s Day which always has a high sale in chocolate and candy sales.
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Creative Strategy
1.To bring awareness to the TimTam brand in the United States
TimTam’s introduction as a national brand to the United States is the most important
aspect of the advertising plan, since from this brand launch the total sales are expected to rise 18
million during that year. Therefore, an emphasis will be on what the TimTam brand is, and the
benefits the consumer has to gain from the cookie. A focus on reach will be used continuously
throughout the campaign to maintain awareness, and high frequency will be used in the peak
months to make people have a higher recall before purchase.
2.To reach a younger target demographic by changing the perception of Pepperidge Farms as
an expensive brand.
We have noticed that an older demographic is buying Pepperidge Farm despite there
being a large index for 18-24 in the enrobed cookies category (157 out of the total sample) and in
the fudge covered cookies category (primary shoppers 149). The age group 45-54 purchases the
most Pepperidge Farm cookies and also the higher the Household income, the greater the index
for Pepperidge Farms. This lead us to believe it is the belief that this brand is considered a luxury
item rather than an ordinary purchase. Since it is desired that a younger demographic be
attracted to the brand, specifically through TimTam cookies, the Advertising campaign will
focus on the average young adult enjoying the delicious, fudge covered cookie. Specifically, the
concept of the “TimTam Slam” will be utilized to add humor and engagement with the brand.
We will make the “TimTam Slam” look like a fun group activity for young people to experiment
with, making it memorable and desirable to a younger audience. The TimTam will be seen as a
great dessert for a group gatherings, parties, and as a pairing with a hot beverage; no gathering is
complete without this fudge covered treat.
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The internet will be a primary way to target this demographic since 98% of this
demographic uses social media (TNW Network All Stories RSS. N.p.). Asking consumers to
submit funny “TimTam Slam” videos, the funniest winning a prize, will be a promotional tactic
that will engage the consumer and make the brand memorable. Pictures of these events will also
be posted on Pinterest and Twitter (via instagram), which will generate a lot of online traffic and
word of mouth awareness.
3. To maintain the current consumers of the Pepperidge Farm Brand
Despite the desire for a younger demographic, the current, older consumers will need reminder
advertising so that the brand stays in the top of their mind before purchase. Magazine ads in
parenting and food magazines, and ads in grocery shopping carts will be the primary way of
ensuring this. Since women are a primary candidate for buying Pepperidge Farm brands, inserts
in womens magazines will be used continuously for brand recall. The image portrayed in these
ads will be the mother, and perfect hostess, who impresses her guests with TimTam cookies and
a warm beverage (in the fall/winter months). TimTams make any gathering a special occasion.
Budget Summary
Non-
Cost (000)
% of Budget
Traditional:
Shopping Cart
635.4
6.6
Transit (Bus)
Display
635.4
6.6
Premiere Panel
Billboard
635.4
6.6
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End Caps
4000.0
24.8
Total:
7177.0
44.5
Banner-Targeted 2365.0
Sites
14.7
BannerSponsored Sites
2175.8
13.5
Keyword Search
473.0
2.9
YouTube Ad
1050.0
6.5
Total:
6063.8
37.6
General Interest
862.7
5.3
Womens
722.0
4.5
Total:
1584.7
9.8
Net TV-Daytime
126.8
0.8
Net TV Prime
362.6
2.2
Net CableDaytime
115.1
0.7
Net Cable-E
Fringe
91.9
0.6
Internet:
Magazines
Television
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Net Cable-Prime 1584.5
9.8
Net Cable- L
Fringe
69.9
0.4
Total:
2350.8
14.6
Budget Total:
16126.3
80.6
Contingency (left 3873.7
over funds)
24.02
Budget Goal
100
20000.0
Budget Evaluation
Our beginning budget was set to 20,000,000 based off of prior Pepperidge Farms ad spending.
For our budget, we stayed under this budget with $16,126,300.00, making our budgeting goals
successful. Pepperidge Farms made it clear that budget efficiency is crucial for this national
campaign, so we spent under budget and have left a contingency fund of $3,873,700.00 to be
used as seen fit for last minute buys and emergency response. The majority of the budget was
designated to internet then non-traditional advertising (includes outdoor and end caps) which has
very high reach. The other two mediums, magazines and television, are used less but have a high
reach. The most money is concentrated during the three peak months of September, December
and February, but the months right before these peak months have higher spending as well. The
least money is spent during the months in between the peak months.
Evaluation
Overall our estimated GRPs, reach and frequency when compared to the goals set is
successful for the budget given. For the non sales peak months frequency, reach and GRPs tend
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to be much lower than the goal, but the estimate cannot take into account exact internet activity
and consumer engagement. For example, in August (a non-peak month) there was a 16.7 reach
out of a goal of 20, a frequency of 1.1 out of a goal of 3, and GRPs are 19 out of a goal of 30.
This pattern of the goal and estimate not matching up completely is seen throughout the “Year at
a Glance”. The budget given is not large enough to sustain a continuous media plan that would
result in a high reach, frequency and GRPs through the whole year. We believe that this estimate
for the non-peak months is not as important as the results seen in the peak months.
During the Peak months of September, December and February, the goal of 80 reach was
set for all. The estimate reads that a higher number of 86 would be attained. A frequency goal of
6 was met by an estimate of 7.8 and the GRP goal of 600 was met by an estimate of 677. The
main reason why these numbers are so much higher than the rest of the non-peak months is
because of the addition of outdoor media, which has a high frequency, and also the addition of
extra television and magazines. The months that precede the peak months, and that also have the
addition of outdoor and non-traditional media also resulted in higher reach, frequency and GRPs.
For example, an average frequency of 7.9 was seen in the months of November, January, which
exceeds the goal of 6 set. We estimated the total GRPs to be 381 and ended up with a grand total
of 681, proving that despite not meeting certain frequency and reach goals in non-peak months,
that the total numbers show how effective our plan is.
What Media Flight Plan does not take into account is the reach that the end caps will
provide as a point of purchase reminder. The non-traditional media, including the YouTube ad,
bus displays, and shopping cart ads also are an aspect of our plan that will show great results in
providing awareness and reach but are not properly accounted for on the MFP program. We do
believe, however, that the plan that we set in place, of a pulsing schedule that peaks during the
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three top sales months, will be successful because of the way we broadened the media mix of
Pepperidge Farms from just Magazines, Int. Display, and cable television to include internet and
non-traditional media. This plan also stays under the budget of 20 million while also being
effective and maintaining marketing goals. These new mediums will reach more effectively the
target of a younger audience, while also maintaining the older, current consumers. TimTams will
become a well known cookie brand by the end of 2014 through this media plan.
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