ADVERTISING PLAN Yongyi Cai Ami Chan Michelle Choi Zach Halperin Ruffles is a potato chip brand that was introduced into the market in 1958 after its acquisition by the Frito company that later merged with H.W. Lay& Co. The chip with wider crinkles is designed to create sturdier chips that can hold more dip and do not break easily.  MARKETING PROBLEM Our Primary research indicates that consumers not only are unaware of the variety of flavors Ruffles’ offers, but they also notice the brand’s lack of social media presence and marketing initiatives. We believe that Ruffles’ insufficient advertising hinders its revenue growth. MARKETING OBJECTIVE The campaign objective is to expand Ruffle’s target audience and increase brand awareness by promoting the new, bold flavors that appeal to men while also emphasizing that Ruffles chips’ durability makes it the ideal chip for on-the-go consumption. SITUATION ANALYSIS: CATEGORY REVIEW DEFINITION  COMPETITION  Potato chips are defined as a snack that provides physical and mental satisfaction to consumers who desire small portions of food during meals. Following a growing tendency of all-day snacking culture, potato chip producers innovate different flavors, ingredients and packaging to fulfill consumers’ needs. First Competitor: Nuts Second Competitor: Tortilla Chips Potato chips remain the most popular but nuts and trail mix have experienced a large growth. The growth of the nuts and trail mix segment is 53% while the growth of the potato chips segment is 34.8%. The competition is growing among the categories . (Shown in Fig.2) STATUS The category has a growing tendency since 2008 and is forecast to continue growing. From 2010 to 2013, the category has a $364 million increase in growth . (Shown in Fig.1) Fig.2 Fig.1 SITUATION ANALYSIS: TRENDS AND IMPLICATIONS TRENDS IMPLICATIONS Increased awareness of product cost People want to spend less money on potato chips. Increased need for premium products People want chips that come in sophisticated packaging to entertain and impress their guests. Increased health concern People want to buy single-serving sizes in order to eat potato chips in moderation. Increased want for on-the-go consumption People want resealable packaging to increase the ease of consumption. Decreased consumption of healthy options Despite their desire to lead healthy lifestyles, more people purchase regular versions of potato chips over baked and reduced fat options because they see chips as an indulgence. Increased substitution of meals with snacks People want food that is easily consumable on-the-go because they may not have time to eat a full meal SITUATION ANALYSIS: BRAND ASSESSMENT PRODUCT The thick ridges of RUFFLES provide various flavors of sturdier and crunchier potato chips that hold more dip. The chips are also less prone to breakage in the bag. Original Chips Crispy Fries Deep Ridged Oven Baked Reduced Fat Chips and ranches PROMOTION Vote For Ruffles® Next Flavor Fever • • Challenges fans to vote for their favorites each day in an elimination bracket-style tournament to win a lifetime supply of ruffles. Ruffles increased incentive that maximized the reach and engagement of its campaign. Creating bolder flavors to attract male consumers. PRICE 1.5oz: $1.09 Pricing is similar to Pringles but cheaper than cape cod. DISTRIBUTION (PLACE) • Supermarkets hold the biggest market share of 43.8% for potato chips and other retail channels (supercenters, convenience stores and warehouse stores) take up 53.2%. One of the biggest growth drivers is that convenience stores sell a variety of grab-and-go options for consumers. • Drug Stores are estimated to reach $866 million in 2013, representing the smallest market share at 4%. Strengths • • • Huge Market Share Under the umbrella of Frito-Lay and PepsiCo (comparative advantages in brand positioning) Strong brand image of study chip texture that avoid cracking inside of bags. Opportunities • • • • • Weaknesses • • • Decreased sales and market share Lack of commercials and advertisements Consumers are unaware of the hearty, bold and grill-inspired flavors that cater to male consumers. Situation Analysis: SWOT Analysis Promotions of flavors and new commercials Millennials increased snacking Trend: single-serve and “on the go” packaging Creating more bold flavors that cater to male consumers.  People are using snack food as meal replacement Threats • • • • Higher nutritive value products Competitive Pricing Rising supermarket shelf fee Trend: Increasing health concerns and diet habits SITUATION ANALYSIS: PRIMARY COMPETITORS RUFFLES  Cape Cod 2.8 PepsiCo, who owns Ruffles, leads the potato chip segment with nearly 60% market share. Its sales increased nearly 3% from 2012-13. Utz 3.7 Ruffles 10.2 PRINGLES Ruffles and Primary Competitors, 27.7 Kellogg Co., who owns Pringles, maintains 11.3% market share due to its acquisition of Pringles from Procter & Gamble in February 2012. Kellogg Co.’s sales increased to 4.4% in 2012. Pringles 11 Others, 72.3 Market Share of Potato Chips in 2013 Utz and Cape Cod Utz, Cape Cod and private-label products both declined in sales, but their market share was minimally impacted. BRAND: RUFFLES PRINGLES UTZ CAPE COD PRICE PER 2.5 OZ. BAG $1.49 $1.29 $1.58 $1.09 (at City Convenience stores) COMPETITIVE ANALYSIS: PRINGLES “YOU DON’T JUST EAT ‘EM” CURRENT POSITIONING MARKET SHARE: Pringles: 11% vs. Ruffles: 10.2% To people who lead spontaneous lifestyles, Pringles is a fun potato chip brand that provides a variety of unique flavors to enliven any event. PRESENTED BENEFIT Resealable packaging makes onthe-go consumption convenient. STRATEGIES Website promotions, uses social media platforms such as Facebook to connect with “fans” build brand relationship. STRENGTHS AND WEAKNESSES COMPARED TO RUFFLES [+] Had the highest increase in brand sales compared to its competitors in 2013 476.1%. [+] More mass media advertising and promotions [+] Neatly packaged in tubes with a resealable plastic lid convenient for people who want to eat on-the-go. [+] Offers single-serving size options [+] Recognizable logo people associate the Pringles brand with the cartoon that has a large mustache. [+] Lower price than the ones of primary competitors. [+] Less salt and grease compared to most potato chips. [+] Stronger social media presence Approximately 10 times the amount of people are “talking about” Pringles on Facebook than are “talking about Ruffles (72,756 > 7,816). [-] Not ideal for social situations because of packaging people need to take turns to eat the chips. [-] The packaging makes it difficult to retrieve the chips at the bottom of the container. [-] Pringles break more easily than Ruffles’ chips [=] Both Ruffles and Pringles have a wide range of unique flavors. COMPETITIVE ANALYSIS: CAPE COD “HOME OF RIDICULOUSLY GOOD CHIPS!” CURRENT POSITIONING To health-conscious people who love snacking, Cape Cod is the all-natural potato chip brand that provides fresh flavors with hand-stirred kettle-cooked chips. PRESENTED BENEFIT Offering customers healthier, natural chips made with little processing. STRENGTHS AND WEAKNESSES COMPARED TO RUFFLES [+] Viewed as a premium brand of kettle chips and the chips are cooked in kettles. [+] More emphasis on healthy, high quality ingredients (Hand-selected potato, oil and salt) [+] Family oriented: use the name of a popular tourist attraction more relaxed brand image [+] Lower price more diverse consumer base (ex. Income) [-] Less variety (only focus is kettle chips and there are limited flavor options compared to Ruffles) [-] Less market share STRATEGIES Facebook promotions for its fans. Ruffles: 10.2% Cape Cod: 2.8% COMPETITIVE ANALYSIS: UTZ “UTZ ARE BETTER THAN NUTS!” CURRENT POSITIONING To people who love diverse options in their snacking life, Utz is the potato chip brand that provides consumers non-GMO potato chips with a variety of flavors. PRESENTED BENEFIT Consistently provides consumers with a wide variety of premium products that are hand-made and without artificial additives. STRENGTHS AND WEAKNESSES COMPARED TO RUFFLES [+] Have a variety of flavors and different lines which focus on different customers. (ex. organic line, Grandma cooked line) [+] Family-owned company that has a long brand history since November 1921 that gained loyal consumer groups. [-] Prices are relatively high (ex. 10o.z Original Ruffles: $3.89, Utz: $5.99) [-] Low consumer awareness (products marginalized in supermarket and not common in vending machine) [-] Packaging and website design are not attractive [=] Ruffles and Utz both lack a wide variety of commercials and print ads consumers have low awareness of their product diversity STRATEGIES  Utz frequently uses social media, such as Twitter hastags, to build its relationship with customers. Utz also uses product placement in TV shows (Mad Men, Modern Family). Ruffles: 10.2% Utz: 3.7% TARGET AUDIENCE: SECONDARY RESEARCH OCCUPATIONS DEMOGRAPHICS  AGE: Most users are either millennials between 18-24 years old (125) or middle age people 45-54 years old. (121) GENDER: Most consumers are Female aging 25- 54(112). The difference between male and female usage is bigger in Ruffles Light as females are more health conscious. In order to diversify its market mix and attract more male consumers, Ruffles changed their packages and launched new products (new bold flavors) that target male consumers.  EDUCATION: Most users either graduated high school (115) or are attending college (104) ETHNICITY: A lot of users speak Spanish at home (121)  Most users are working in Natural Resources, Construction(122) or sales and office occupations. PSYCHOGRAPHICS Lifestyle- Media Consumption: MAGAZINES: Eating Well magazines (140), Fitness (121), Game & Sportsman and WWE Magazines (208). INTERNET: They are also frequent browsers of NBA.com (144), CBSSports (133) and Yahoo en Espanol (171) websites. TARGET AUDIENCE: PRIMARY RESEARCH ONLINE SURVEY: 15 questions, 55 respondents. Results: The make up of the respondents were 55% female and 45% male. 54% of the survey takers said that they are unsatisfied with Ruffle’s nutrition values but most of the people are very satisfied with its Taste, Texture and Price. 66% of the people indicate that they are not satisfied with the variety of flavors Ruffles offers. 42% of the survey takers usually purchase regular size (1.5oz) of potato chips. Purchase Location Preferred Chips Type 14% Supermarket 30% 50% 12% 8% Fig.1 Vending Machine DrugStores Convenience Store * See Appendix A Original 7% Baked 26% Most Important Quality 53% Fig. 2 Reduced Fat Kettle Cooked Price 19% 19% 18% Texture 21% 23% Fig. 3 Variety of Flavors Packaging FOCUS GROUPS: INTERVIEW RESULTS One-On-One Interviews: 10 questions, 20 people in the focus group Why do they CHOOSE Ruffles? Sarah T, 19: “It’s signature ridges can hold a lot of dip.” Kenny L, 25: “Ruffles has recently put out some really great and unique flavors.” Brian L, 20:“ I like that Ruffles chips don’t crumble inside the bag and usually stay in big pieces.” Why do they NOT CHOOSE Ruffles? Matthew C, 19: “It’s original flavor is too salty, but I like their cheese flavor.” Alfred C, 20: “I haven’t seen Ruffles commercials anywhere and they need to produce more flavors.” Annie H, 19: “I don’t like the packaging and I also try to Interviewees’ main suggestions for Ruffles to do better: 1) Expanding the sales outlet in vending machines, especially within colleges. 2) Marketing the chip’s new flavors CONSUMER INSIGHTS After combining and analyzing our secondary research and primary research: Even though people are health conscious, they would pick the original flavor over Baked or Reduced fat because they see chips as an indulgence. 73% of consumers eat potato chips during social gatherings. People are always on-the-go and snack throughout the day 23% of consumers are most concerned with the variety of flavors chip brands have to offer while 66% of them think that Ruffles doesn’t have enough flavors. Survey takers and interviewee suggest that: “They need to change the packaging and add more chips in each bag.” “Soften the chips’ texture a little” PROBLEM TO BE SOLVED Ruffles lacks an effective brand relationship with consumers as they are unaware of the variety of flavors Ruffles offers (they have 15 flavors of chips and 4 flavors of dip). KEY INSIGHT The key insight we uncovered is that most male consumers think that Ruffles’ flavors are ordinary, and do not know Ruffles’ new bold flavors. So when they shop for potato chips, they overlook Ruffles. POSITIONING STATEMENT To 18-37 year-old potato chip consumers, Ruffles is the durable potato chip brand that won’t crumble during your everyday adventures. ADVERTISING OBJECTIVE Through our advertising campaign, we will focus on expanding Ruffles’ target audience by increasing consumers awareness of the variety of new, bold flavors. Our use of multimedia advertisement will also enhance Ruffles’ brand image and foster a stronger brand relationship with potato chips consumers. Emphasize how Ruffles’ family-sized bag option (which accounts for 80 % of their sales) is perfect for social eating. “ Ruffles won’t crumble” will be the recurring slogan on every campaign and advertisement to emphasize Ruffles’ sturdy chips and how this enables people to consume on-the-go. Multimedia outlets include Television, Internet and Magazines. We aim to increase our target audience by positioning Ruffles chips as the best option for onthe-go consumption and increase awareness of the new, bold flavors they have to offer the market. CREATIVE STRATEGY WHO IS THE ADVERTISING TALKING TO? The advertising is talking to 18 to 37-year-old male and female potato chip consumers. This group is most likely to purchase and indulge in potato chips for on-the-go consumption. WHAT SINGLE BENEFIT SHOULD THE ADVERTISING PROMISE? That Ruffles chips are unlikely to crumble inside the bag so they’re ideal for on-the-go consumption. WHY SHOULD THE CONSUMER BELIEVE YOU? Ruffles has the popular brand image of study chips that won’t crumble inside the bags. It is also the second most successful brand in the potato chip category. WHAT DO YOU WANT THE CONSUMER TO THINK AFTER SEEING THE ADVERTISING? WHAT DOES THE CONSUMER THINK NOW? Ruffles’ durable potato chips are consumers’ ideal option to satisfy hunger on-the-go. Also, Ruffles chips’ wide array of flavors can satisfy everyone making them the perfect snack for social gatherings. The consumer only thinks of ridges when they hear Ruffles. They are not aware of the wide range of flavors offered. CREATIVE STRATEGY: BRAND PERSONALITY NEW SLOGAN “Ruffles won’t Crumble” NEW TARGET AUDIENCE Potato chip consumers between 18-37 years old: men who want bold flavors and women who are less likely to purchase unhealthy snacks such as potato chips. (Ad should empower women and make them feel like they can “handle” the bold flavors too.) BRAND PERSONALITY TRAITS Versatile, fun, relatable, humorous, bold, adventurous and spontaneous. CREATIVE GUIDELINES The general tone of the commercials and campaigns will be modern, playful, bold and adventurous Each commercial or video will end with the crunching of Ruffles chips and our slogan “ Ruffles won’t Crumble”. The advertisements will highlight the durability of Ruffle’s chips and the wide variety of flavors. VISIONS AND GOALS Since we are targeting consumers between the age of 18- 37, our new campaign will be more relevant to millennials and generation x who enjoy fun and humorous ads. The ads will feature a fun-loving tone that relates to the fun, new flavors we are promoting. The slogan will be“ Ruffles won’t crumble,” as we demonstrate Ruffles chips’ durability, which is perfect for on-the-go consumption, as well as the new flavors which are ideal for social snacking. MEDIA PLAN WHEN WHERE Due to the growing tendency of American’s all-day snacking culture, people are more likely to consume potato chips at any time year-round. Our advertisements will be placed on various media throughout the year. However, we found that most potato chip consumers heavily consume sport magazine and sport websites. So will focus more on marketing efforts during the Spring and Summer when the weather is nice and people are looking to have fun outdoors. MAGAZINE Magazines allow us to target consumers’ interests and to provide in-depth brand messages. Magazines also have a long life span because they often occupy waiting rooms for a long time, and are not as frequently published as newspapers are. Our print ads will be featured in the following magazines, which appeal to the interests of potato chip consumers, such as automobiles, family, and leisure activities. Target Audiences: Street Rodder (121), Four Wheeler (119), All You (118), Autoweek (118), Ski (115), FamilyFun (113), Saltwater Sportsman (113), Parenthood (106), and Boating (106). Our campaign is focused on reaching the 18-37 demographic. We chose magazines, internet and television as our media vehicles to delivery our messages to our target audience. TELEVISION Most potato chips consumers have a relatively high media consumption on television . However, our interview shows that most of our interviewees said they hardly see Ruffle’s commercial on television channels. Airing our Ruffles creative commercials enables us to reach a large and diverse audience within our target range. By effectively marketing Ruffle’s different flavors and unique ridged chips, Ruffles is able to solve its market problem. Since our target age range is more likely to partake in late night activities such as watching sports game, late night talk shows or watching primetime television with friends or family, we would like to air our commercials primarily during the 8pm to12am time slot. Target Audiences: MTV Tr3s(204) Fox Soccer Channel (180) NBA TV (150) MTV (154) Discover Fit & Health (143) ESPN Classic(131) # The Hub (182) Vh1 (159) Centric (151) MEDIA PLAN INTERNET Ruffles does not have a strong online presence (13,000 Twitter followers for Ruffles compared to 92,800 thousand Twitter followers for Pringles). Our ads will be featured on the following websites, which focus on various interests of potato chip consumers, such as sports, discounts, and music. MyPoints.com (119), ShopAtHome.com (113), Farmville (109), foxsports.com (110), Coupons.com (108), NASCAR.com (108), Yellowpages.com (107), NBA.com (107), iVillage.com (106), and Ticketmaster.com (105) #RufflesWon’tCrumble Cause-Marketing Campaign using Social Media Our microsite will promote our cause-marketing campaign with the Make-A-Wish foundation, and feature stories of the children who are staying strong during their battle against their illnesses. Our campaign will aim to raise money for the Make-A-Wish foundation. Make-A-Wish grants the wishes of children diagnosed with life-threatening medical conditions in the United States, and believes that doing so will be a life-changing experience for those children. Social Media Marketing is a fast and easy way to connect with the modern day consumer while being cost-efficient. Every time someone tweets a picture of a bag of Ruffles chips with the hashtag #RufflesWontCrumble, Ruffles will donate a portion of their sales to a child’s cancer hospital. We support their belief that children should stay strong, and not crumble, during their battles against their illnesses. Therefore, we want to join in Make-A-Wish’s mission to make the wishes of those children come true because the theme of staying strong is consistent through our cause-marketing campaign. Ad #1: T.V. Ad: A Day at the Beach CREATIVE EXECUTION Content: Our premier television ad opens with a scene of 3 guys and 2 girls, in summer attire, stocking a car for a day trip to the beach. They are packing 3 big bags of Ruffles (one flavor is original, one flavor is molten hot wings and one flavor is chili cheese fries). The camera zooms in on the various flavors of Ruffles and shows the crew putting the bags of chips in the backseat. The scene then shifts to the beach with the car driving on rugged terrain. Then, we see our crew unpacking the car. The chips are in prime condition and the crew begins eating together while laughing and throwing around a football. The commercial ends with the Ruffles logo and a voice-over of “Ruffles Won’t Crumble.” Why This Ad Works: From Ruffles’ official Facebook page: “Great friends, delicious food, and plenty of time to kill: That’s Ruffles’ definition of a good time.” This stance complements our ad’s image of friends enjoying time together while eating Ruffles together. 2. 1. 3. 4. 5. Intended Message: Ruffles potato chips are perfect for social gatherings because of the variety of flavors and family-sized bags. Their sturdy chips are so good for on- the- go consumptions because they can easily survive a car ride without breaking. CREATIVE EXECUTION: Digital Ad We will launch a social media campaign on Ruffles’ Twitter, Facebook and Instagram accounts asking customers to post interesting pictures of them eating Ruffles at different occasions. The 10 posts that get the most shares and likes will have a year of unlimited supply of Ruffles’ chips. It will also introduce Ruffles’ cause-marketing effort for cancer patients. A microsite of this campaign will also be created to allow donations from consumers. At the end of the 3-month campaign, Ruffles will donate $1 for each hashtag (#RufflesWon’tCrumble) that consumers post. This will significantly increase Ruffles’ social media presence by getting #RufflesWon’tCrumble trending across online platforms while increasing consumer awareness of the variety of flavors Ruffles has to offer. Ruffles chips’ packages will also have stickers that advertise the new social media campaign CREATIVE EXECUTION Ad #3: Print Ad Content Our print ad will feature a torero holding up a Ruffles chip in front of an angry bull. We hope that consumers who stumble upon our ads in magazines will stop to look at the ad because of its humor. Obviously, a Ruffles potato chip could not withstand the force of a bull but we think readers would understand our overarching theme- that the chip is durable. The use of our hashtag #RufflesWon’tCrumble below the ad also serves to tie in our print ad with our social media campaign. Intended Message Ruffles potato chips are strong and durable. They will not crumble as easily as traditional non-ridged chips. 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