DiGiorno - krvorobyova

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Team Incredible
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Nestle took over DiGiorno in 2010
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DiGiorno has remained the top-seller of frozen pizza since
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Frozen pizza market has become cluttered, so DiGiorno
needs to continue to hold the consumer’s interest
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Overall, Americans eat about 23 pounds of pizza per year

Restaurant, take out, or grocery store

Pizza sales are increasing at a rate of 10% annually
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Growth: In 2005-2009, DiGiorno achieved a22% growth
increase.
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Mintel predicts that it will continue to increase at about 4%
annually during 2011- 2015.
(Information from Mintel’s Pizza at Retail- US June 2011)
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Decline: In 2010, sales decreased by 1.1%.
Mintel expects a 0.3% decline for 15-24 year-olds between
2011-2016.
 Results in an unfavorable future in younger demographics for
pizza companies.
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Changes: Per Mintel’s custom consumer survey, two thirds
(65%) of households with one child have eaten a frozen
pizza in the last three months, compared to 72% of
households with two or more children.
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Families with more kids tend to be the drivers for pizza
sales.
(Information from Mintel’s Pizza at Retail- US June 2011)
Market Share
DiGiorno
Red Barron
Tombstone
California Pizza Kitchen
Jack’s
29.4%
12.5%
10.9%
6.1%
5.7%
Trends :
• The South and Northeast hold the largest percentage of adults who
eat frozen pizza.
• DiGiorno pizza and sides, such as: “Pizza & Wyngs” and “Pizza &
Cookies”
• Families with more than three kids show a far greater tendency to
eat pizza that involves some kind of preparation (Simmons).
“New” DiGiorno options
 Combination packages:

Pizza & Wyngz, Pizza & Cookies and Cheese Stuffed Crust
Large portioned pizzas with various toppings and crust types and flavors
 Small single portion pizzas with various toppings and crust types and
single pizza in a 200 calorie portion
Price
 Compared to competitors, DiGiorno’s prices are similar to other high
quality frozen pizza options

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Pizza & Wyngz, Pizza & Cookies and Cheese Stuffed Crust
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Although DiGiorno seems like the highest priced pizza, it promotes the
quality of delivery pizza in their frozen entreesSmall single portion pizzas
with various toppings and crust types and single pizza in a 200 calorie
portion
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Supermarket/foodstore:14% increase with $3,360 in sales in 2010
Super-centers/warehouse: 38% increase with $1,746 in sales in 2010
Drug Stores: 50% increase with $50 million in sales in 2010
Other: 50% decrease with $106 million in sales in 2010
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Current frozen pizza heavy users tend to be parents of
large families, single men and teenagers.
Heavy users are also teenagers, young singles (particularly
men) and children old enough to prepare their own meals.
Traditionalists:
Under the age of 55
 Not loyal to any one brand of frozen pizza.
 They are less interested in innovations such as high-protein,
international flavors or gender specific.
 Most likely to indicate that compared to a year ago they are
buying more pizza that is on sale and/or the best price.


They are most interested in an affordable, frozen or take out pizza
that is made with common ingredients
Primary Target
 Families with at least 5 or more persons in the household
 Work full time (30+ hours)
 $75,000+ income
 These demographics are those who are already frequently
purchasing DiGiorno.
 DiGiorno will be an easy solution to create a family social
meal.
Secondary Target:
 Males aged 18-24
 At minimum hold a high school diploma
 At minimum work part time
 DiGiorno is going to be their go-to social meal with friends.
This age group is 20% above average in terms of choosing
frozen pizza.
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Newspapers:
Americans spent 26 minutes on average reading the newspaper
per day in 2011.
 It is a great source of reaching a wide variety of audiences.
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Internet:
In 2010-2011, 77% of 10,000 adults aged 18+ used the Internet
more than an hour a week for something other than checking
their emails.
 Using keyword search optimization will keep DiGiorno at the
top of the consumer’s mind while they search “frozen
pizza,” “frozen meals,” “pizza” or “easy dinner” for
instance.

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Television:

The average American spends four hours and 39 minutes
watching television per day. (eMarketer)
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Psychographics/Lifestyle: Public perception of frozen
pizzas range from thinking the food is downscale,
unhealthy and low
Seasonal Sales: DiGiorno’s sales do not fluctuate too
intensely from season-to-season, but sales are best during
the winter and back to school months.
Economy: The economy is in a transitioning phase,
therefore this could reflect on sales of frozen-pizzas
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Dependent on whether people will feel like splurging more, or
if staying in is best for saving money.
Groups: Single women, older couples and middle to old
people purchase DiGiorno frozen-pizzas less than other
groups.
Regions: Sales for DiGiorno frozen-pizzas vary depending
on region. There are many opportunities for growth.
Marketing Objectives
 DiGiorno’s ultimate goal:

Increase market share from 29.4% to 31.4% within 2012-2013.
This represents $723 million of total sales.
 In doing so, coupon promotions will be incorporated once a
month for either two for $2.00 and two for $1.50.
Advertising Objectives
 To reinforce the perception that DiGiorno is the highest quality
of frozen pizza, “It’s not delivery, It’s DiGiorno.”
 To encourage current users to make multiple purchases instead
of single purchases.
 To increase awareness of how DiGiorno is the highest quality
of frozen pizza for .
 To remind current users of brand loyalty, instead of attempting
to attract the non-users.
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Desired Reach and Frequency
Levels
High months:
Reach: 94
Frequency: 13
Low months:
Reach: 70
Frequency: 2
Continuity Pattern:
Pulsing
High months: Winter
months, popular sporting
months, back to school
months (January,
February , March and
August)
Low months: April, May,
June, July, October,
November and December
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High month allocation:
$29,330,400
($7,332,600 per month
for 4 months)Winter
months, popular
sporting months, back
to school months
(January, February ,
March and August)
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Low month allocation:
$20,451,200
($2,556,400 per month
for 8 months)April,
May, June, July,
October, November and
December
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Television
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Network
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Budget: $3,145,400
Percent: 6%
Spot
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Percent: 18.40
Cable
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Budget: $9,215,600
Budget: $2,091,600
Percent: 4%
Although the internet has become a new source to watch videos,
television is still the most popular way to watch videos despite
the growth of sites such as YouTube and Hulu (Mintel).
Advertising DiGiorno on television will be an appropriate medium
because ads for staple versus luxury products are more accepted
to viewers. This is especially important for our secondary target
audience, since men have been found to be more open to
television ads and more engaged with them.
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If a single man sees our ad, he might be more receptive to the
message
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Radio
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Budget: $2,278,200
Percent: 4.60%
According to Arbitron radio market rankings for spring 2012,
the top markets for radio listeners in the South and East
Central regions are:
Dallas-Ft. Worth, Houston-Galveston, Atlanta, Detroit, Miami-Ft.
Lauderdale-Hollywood, Tampa-St. Petersburg-Clearwater,
Charlotte-Gastonia-Rock Hill, San Antonio, Cincinnati and
Cleveland.
Based on the ratings, we have decided to use these areas
to advertise to our consumers. Since each market has different
top genres, radio spot advertising will vary per DMA.
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Magazine
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Budget:$2,243,400
Percent:4.50%
Consumers have to purchase magazines, so they are more
likely to pay attention to content such as ads.(Mintel)
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Newspaper
Budget: $15,889,500
Percent: 31.89%
Print advertising has the next greatest reach after television most notably in
RoI where almost half of all consumers pay attention to adverts in newspapers
and magazine (Mintel).
5% of consumers use the newspaper as a primary source when checking for
sales ads and 41% check the newspaper regularly before shop.
Due to these facts, we decided to use newspapers, especially since a lot of
subscribers obtain the newspaper for coupon and sales in general.
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Internet
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Budget: $4,067,800
Percent: 8%
We will target mother’s through social media because they are:
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5% use social media
31% more likely than the general population to become a fan or follow a brand
27% more likely to comment on others’ postings
24% more likely to become a fan or follow a celebrity
37% more likely to post photos33% more likely to post status updates
This will allow to have a strong position to be remembered, have more people
follow the brand and eventually purchase the product
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Outdoor
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Budget: $4,888,000
Percent: 9%
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Billboards will serve as reminders for primary target and urge
consumers to purchase product on the way home for dinner.
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Outdoor has the highest reach and frequency.
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42% of respondents noticed ads last week
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¾ noticed billboards
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18-24 year olds are more likely to notice transportation ads
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25-54 are more likely to notice billboards
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Direct Mail
 Budget: $6,791,600
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Percent: 13.6%
According to Ballantine Corp. stated that Direct Mail is still
considered to be important in B2B marketing. Although it doesn’t
hold the “flash” the latest social media trend, it still works.
Thank you!
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