Marketing Plan Stouffer’s Healthy Pantry Meatloaf Prepared for: Steve Howell Marketing II, Section 1 July 14, 2013 Melissa Vos 6644595 Jordi Von Fielitz 4314225 Rachel Bender 3854494 Justin Ranger 3966736 Introduction White flour is a refined flour made by stripping the wheat kernel of most of its nutrients and chemically bleaching it to produce its white colour.1 In recent years, white flour has been linked to a number of serious medical conditions, including obesity, diabetes, chronic inflammation, arthritis, and digestive issues.2 Growing awareness of its health implications, as well as an increase in the occurrence of wheat sensitivity (including Celiac Disease), have led to a trend to consume less white flour. While many people associate it with baked goods, white flour is a common ingredient in many foods. Often used as a thickening or binding agent, it is present in many food products where consumers least expect it. For this reason, we have selected a less obvious product for repositioning, Stouffer’s Meatloaf frozen entrée. In 1922, the Stouffer family opened their first restaurant in Cleveland, Ohio.3 The business grew to include a chain of restaurants and, in response to customer requests, a frozen food division was launched in 1954.4 This division was purchased by Nestlé S.A. in 1973.5 Since that time, Nestlé has continued to offer a line of delicious, homestyle meals under the Stouffer’s brand name, including Chicken Potpie, Salisbury Steak, and Meatloaf. Stouffer’s Meatloaf entrée, served with mashed potatoes and gravy, offers classic comfort food at the touch of a button. However, its use of white flour makes it unsuitable for consumers who are wheat intolerant or those pursuing a healthier diet. Due to this, we propose that Nestlé create a new line of frozen entrées offering healthier versions of their The original Stouffer’s Meatloaf frozen entrée traditional homestyle favourites, starting with Stouffer’s Healthy Pantry Meatloaf. Stouffer’s Healthy Pantry Meatloaf will use only gluten-free ingredients and will include side dishes that increase the nutritional profile of the meal - roasted potatoes and mixed vegetables. These modifications will increase fibre, reduce sodium, and reduce saturated and trans fats, resulting in a healthier meal that is compatible with gluten-free diets and continues to offer the high quality, homestyle cooking Stouffer’s is known for. 1 Nestlé’s Strategic Focus and Plan Mission Nestlé’s mission is “to enhance the quality of consumers’ lives every day, everywhere by offering tastier and healthier food and beverage choices and encouraging a healthy lifestyle.”6 This mission is embodied in its value proposition, Good Food, Good Life. Goals Nestlé believes that by undertaking global nutrition, water, and rural development initiatives, it can build long-term value for its shareholders and for society.7 They call this Creating Shared Value. As part of these initiatives, Nestlé has a goal to “help consumers attain and maintain optimal nutrition, health, and wellness.”8 To that end, they have made several commitments regarding the nutritional profile of their products, including reducing salts, sugars, saturated fats and trans fats as well as encouraging consumption of whole grains and vegetables.9 Repositioning Stouffer’s Meatloaf as a healthier meal option is a step towards achieving Nestlé’s goal. In June 2013, Nestlé announced a USD 53 million investment toward research and development in frozen and chilled foods.10 This investment in their facility in Solon, Ohio, will help Nestlé “continue to develop innovative nutrition, health and wellness solutions” without compromising on taste.11 Competitive Advantage Nestlé is a worldwide leader in nutrition, health and wellness products. They have identified the following corporate competitive advantages: Unmatched product and brand portfolio; Unmatched research and development capability; Unmatched geographic presence; and People, culture, values, and attitude.12 The Stouffer’s brand is a leader in the evolving frozen food industry and offers a greater proportion of unique dishes than any of its competitors.13 Since the mid-1950s, it has built a loyal customer base by providing classic, homestyle dishes. Many customers have grown up with the 2 brand and trust it to provide satisfying and delicious meals. Its 100% satisfaction guarantee signals to new and old customers alike that they can count on consistent value from every meal. Stouffer’s was one of the first brands in the industry to advertise heavily, creating high brand awareness and building market share.14 Its attractive packaging demonstrates the product’s value, reinforcing a quality image and providing instant recognition for consumers.15 Stouffer’s brand loyalty and brand recognition combined with its unique line of quality products give the company a competitive advantage over other firms in the industry. Stouffer’s can sustain this competitive advantage by continuing to market high-quality, unique, and delicious meals. Situation Analysis Strengths The leading brand of homestyle frozen entrées with a unique selection of quality products Preservative free, 25% less sodium than original recipe Easy to prepare in the microwave or conventional oven, convenient for on-the-go meals A long standing, well-recognized brand name since 1954 Distinctive, highly recognizable packaging Use coupons to encourage purchase A money back, 100% Satisfaction Taste Guarantee Stouffer’s Rewards - collect points with each purchase of a Stouffer’s entrée which can Stouffer’s products are backed by a 100% satisfaction guarantee be redeemed for gift cards, electronics and other merchandise Owned by Nestlé, an internationally recognized brand, since 1973 Nestlé provides strong financial backing, supply chain networks, marketing, research and development, and a commitment to improving nutrition Efficient distribution - can find Stouffer’s at any local grocery store or frozen food aisle Informative website that is easy to navigate Stouffer’s is a leading brand in the frozen food industry, offering a variety of classic, homestyle frozen entrées, such as Macaroni and Cheese, Lasagna, Meatloaf, and Chicken Pot Pie. Most 3 Stouffer’s entrées are preservative free and many offer reduced sodium. These delicious and convenient meals can be easily prepared by busy people on-the-go. Commercially available since 1954, Stouffer’s has achieved high brand identity and loyalty. Its distinctive packaging is instantly recognizable in the freezer aisle of any grocery store. Frequent coupon offers, such as “Buy 5 and save $3”, encourage both new and loyal customers to purchase. A money back, 100% satisfaction taste guarantee gives consumers confidence that Stouffer’s stands behind its products. The Stouffer’s Rewards program allows consumers to collect points for every Stouffer’s product purchased, encouraging repeat purchases and brand loyalty. Points can be redeemed for gift cards, electronics, and other merchandise. Stouffer’s is owned by Nestlé, a global company with the financial, operational, and marketing resources necessary to support an international brand. Through its worldwide supply chain network, Nestlé provides efficient distribution of Stouffer’s products. Nestlé excels in research and development and is committed to improving consumer nutrition without compromising taste. Weaknesses Frozen entrées have a stigma of being unhealthy Cooked product may be visually unappealing and unappetizing Most meals contain white flour and are high in fat and sodium, limiting options for consumers with dietary restrictions Past recalls may have damaged consumer perceptions Lack of social media presence in Canada Although frozen entrées are convenient, some consumers perceive that they are unhealthy and poor quality and, therefore, do not purchase this product category. Further, when thawed or overcooked, the product may be visually unappealing, reducing repeat purchases. Additionally, Most Stouffer’s meals contain white flour and are high in fat and sodium, limiting options for consumers with dietary restrictions and narrowing the target market. In the past, Nestlé has had to recall Stouffer’s products several times.16 Although Nestlé is proactive and voluntarily recalls products as a precaution, demonstrating a strong commitment to consumer safety, these product recalls may have negatively impacted consumers’ perception of the brand. 4 Opportunities Busy pace of life means people are turning more to prepared meal options rather than cooking from scratch Aging population is looking for meals that are quick, nutritious, tasty, inexpensive and easy to prepare Consumers are becoming more health-conscious and looking for healthier meal options The factors people consider most when buying frozen dinners are (in order): sodium, fat, sugar, convenience, MSG, preservatives, portion size, and variety17; other factors considered include calories, wheat content, fibre, and lifestyle choices (e.g. organic, vegetarian) Real Talk forum on website has potential to create customer dialogue and receive direct feedback Frozen food is a growing industry. As life becomes more hectic, people are spending less time cooking for themselves and their families. Frozen entrées are becoming an increasingly popular option for quick and easy meals. As the population ages, older consumers dealing with health concerns, limited mobility, or fixed incomes require easy-to-prepare, nutritious meals. Widowed consumers who don’t want to cook a meal just for themselves are turning to prepared options instead. Health-conscious consumers are now looking for products that are low in sodium, MSG, fats, preservatives, and calories. Stouffer’s has an opportunity to provide healthier meal options to meet these changing demands while capitalizing on its core competence of providing unique, homestyle food. Threats Frozen foods are perceived as being less nutritious than fresh ingredients Increased incidence of wheat allergy and other medical or lifestyle diet restrictions current products are unsuitable for people requiring gluten-free, vegetarian, halal, kosher, or organic options Highly competitive industry - Weight Watchers Smart Ones, Michelina's, store brand meals, etc. 5 Increased competition from product substitutes - fresh prepared hot meals now available in many grocery stores Many consumers are pursuing a healthier lifestyle and perceive that frozen foods offer fewer nutritional benefits than fresh foods. Sales are further threatened by the increase in chronic diseases like diabetes and Celiac Disease. As the population becomes more diverse and wellinformed about health issues, more Canadian consumers are seeking halal, kosher, vegetarian, gluten-free, or organic meal options not currently widely available in frozen entrées. Frozen food is a highly competitive industry. Although Stouffer’s is a leading brand, they are threatened by other brand name competitors as well as private label products such as Compliments and President’s Choice. The increase in availability and variety of freshly prepared foods at grocery stores like Sobeys and Loblaws offers consumers additional options when purchasing prepared meals. Repositioning Plans As the preceding situation analysis demonstrates, today’s consumers are becoming more conscious of the health implications of the food they eat. It is necessary for Stouffer’s to reevaluate their line of frozen entrées and provide products that align with this trend toward healthier eating. In order to succeed, however, Stouffer’s must remain true to the competitive advantage the brand has been built upon while changing consumers’ perceptions of frozen entrées in general. Stouffer’s Healthy Pantry Meatloaf is gluten-free, lower in sodium and fats, and higher in fibre than the original recipe. It provides a healthier meal option suitable for people with a variety of dietary restrictions. The Stouffer’s name gives the new product instant brand recognition and credibility but the Healthy Pantry name and slightly altered packaging clearly indicate that it is a wiser choice for health-conscious consumers. Competing brands offering healthier frozen entrées typically offer lighter meals – for example, rice, chicken, and vegetables. The Healthy Pantry line of products, beginning with Meatloaf, is 6 well positioned against these competitors because it stays true to Stouffer’s key point of difference, which is that it provides classic, homestyle meals, now in a healthier format. Target Markets Profile Sarah, 36, was a stay-at-home mother of two - Josh, 7, and Rebecca, 5. Her husband, Billy, works full time as a Paediatrician. Now that both children are in school, Sarah has returned to work as Office Administrator at a dental clinic. She enjoys taking fitness classes at her local gym and attends swimming classes weekly. Her children are involved in soccer, ballet, and basketball and Josh receives weekly tutoring from Sylvan Learning. Sarah has always been concerned about providing healthy, nutritious meals for her family. However, now that she has returned to work, she has less time for grocery shopping, meal planning, and cooking. Their busy, on-the-go lifestyle has forced Sarah to look for more efficient ways to feed her family. Although she feels guilty about it, some nights she barely has time to heat up a frozen dinner for her kids before they have to leave for soccer practice or another activity. The family recently found out that Josh has developed an intolerance to white flour, forcing Sarah to be conscientious and innovative when feeding her family. She is struggling to find healthy options that can be prepared quickly for those nights when she just doesn’t have time to cook. Demographics 2 Restricted Rob 3 Sick/Single Sue 1 Busy Bess Men and women, aged 19 to 65 Married or single With or without children Men and women, all ages Married or single With or without children Men and women, all ages Married or single With or without children Geographic Canada (nationwide) Canada (nationwide) Canada (nationwide) Psychographics 1 Busy Bess Lead active lives – busy, on-the-go Value their health and keep abreast Behaviour Have little time to prepare nutritious meals, need food fast 7 2 Restricted Rob 3 Sick/Single Sue of current health trends May have made a lifestyle choice to improve their diet – e.g. consume less white flour, reduce sodium or fat intake Believe it is important to provide healthy meals for their families (if applicable) Lead active lives – busy, on-the-go Medical condition restricts what they or a family member can eat Health-conscious – have a heightened awareness of nutrition Medical condition or disability restricts ability to prepare food; OR Single or widowed, don’t want to cook an entire meal just for themselves Try to eat healthy foods but are limited by what is available to them Want to eat well even when they don’t have time to cook Looking for heartier, healthier meal options Looking for hearty meal options that comply with diet restrictions (e.g. gluten-free, low in fat, low in sodium) Have little time to prepare nutritious meals, need food fast Looking for hearty, healthy meal options that are easy to prepare Purchase frozen dinners often – looking for good taste and variety Stouffer’s has traditionally used an undifferentiated targeting strategy to target a broad group of consumers - those looking for convenient comfort food for themselves or their families. The introduction of Stouffer’s Healthy Pantry Meatloaf represents a multi-segment targeting strategy. This new line targets specific consumers within the broader original audience who may not have been willing or able to enjoy the original product. These will be consumers who are seeking convenient homestyle food with an improved nutritional profile that is compatible with certain dietary restrictions or preferences. Product Strategy Stouffer’s Healthy Pantry Meatloaf is a product line extension created by modifying an existing product and repositioning it as a healthier version of a traditional favourite. This new meatloaf dinner will be the first in the new Stouffer’s Healthy Pantry line of products. The Healthy Pantry name indicates that it is a healthier choice but still implies hearty, delicious, homestyle cooking. 8 Stouffer’s original meatloaf recipe has been altered to remove the white flour and to use only gluten-free ingredients (see Appendix A). The mashed potato side dish has been replaced with roasted potatoes and mixed vegetables, and the gravy has been eliminated in favour of a ketchup glaze. Inherent sodium content has been reduced and separate packets of salt and pepper have been included to allow consumers to season according to their tastes and dietary requirements. The new Healthy The new Stouffer’s Healthy Pantry Meatloaf frozen entrée Pantry Meatloaf is gluten-free, lower in sodium and fat, and higher in fibre than the original. The serving size remains the same at 263 grams. Frozen entrées are a consumer convenience product. Although a consumer may spend several moments in-store comparing available brands on the basis of variety, nutritional value, and price, very little time is spent on search activity. As such, it is important that the benefits of Stouffer’s Healthy Pantry Meatloaf are clearly visible on the packaging, enticing consumers to buy. To ensure brand recognition, packaging for the new Stouffer’s Healthy Pantry line will maintain elements of the original Stouffer’s package, such as the distinct orange colour and the logo. However, the new packaging will incorporate white space and lighter colours to differentiate it from Stouffer’s original line and to visually indicate to consumers that it is a healthier option (see Appendix B). The package will use persuasive labeling to highlight the product benefits as well as the 100% Satisfaction Guarantee and the Stouffer’s Rewards program common to all Stouffer’s products. The Stouffer’s brand name has been associated with frozen food since the 1950s. The new Stouffer’s Healthy Pantry line uses a family branding strategy, capitalizing on the history and recognition of the brand, which it shares with Stouffer’s other frozen meal solutions. Other products within the family brand include Stouffer’s Bistro and Stouffer’s Skillet Sensations. The key point of difference for Stouffer’s Healthy Pantry is that it provides a healthier, more nutritious version of the homestyle cooking for which Stouffer’s is famous. Other healthier frozen dinners offer lighter meal options, such as chicken, rice, and vegetables. Stouffer’s Healthy Pantry offers hearty comfort food that is made in a healthier way and is suitable for people with dietary restrictions. 9 Place Strategy Stouffer’s Healthy Pantry Meatloaf will continue to be offered at the same retail outlets as the original product – supermarkets, hypermarkets, and drugstores - with some variation on placement. Supermarkets In traditional grocery stores, it is important that Stouffer’s Healthy Pantry Meatloaf be placed in close proximity to other healthy frozen food options like Lean Cuisine or Smart Ones. As outlined in our Product Strategy, distinctive packaging and persuasive labelling will differentiate the new product from Stouffer’s original line of frozen entrées as well as demonstrate its benefits over competing brands. Using the new Healthy Pantry products, Stouffer’s will create a vertical or horizontal line between their traditional entrées and competing healthier options. This placement ensures that Stouffer’s Healthy Pantry benefits from the brand recognition of Stouffer’s original entrées on one side but is instantly visible to consumers who, by habit, skip straight to the competing healthier options. Appendix C, Figure 1 provides an example of an instore display where all of the healthier frozen meal options are grouped together. In this picture, it is evident that the retailer is placing products by benefit (i.e. all of the healthier options together) to make it easier for today’s time-starved consumer to find rather than grouping them by brand name. As an additional means of ensuring visibility of the new Healthy Pantry products, they will be placed in the Natural Foods section now present in many grocery stores. This secondary placement within the store will ensure that people who go directly to the Natural Foods section, looking for healthier options without shopping in other areas of the store, will see the new product, become aware of its benefits, and make a purchase. Hypermarkets Hypermarkets are large retail outlets, like Wal-Mart and Superstore, that combine a supermarket and a department store.18 The grocery section of these stores is very similar to that of a traditional grocery store, however there is often less floor space allotted to grocery items. As the Healthy Pantry product line expands, Stouffer’s will have to decide which original products and which of the new products to display at these locations. 10 As with traditional grocery stores, it is very important to create a visual line of distinction between Stouffer’s original and Healthy Pantry products. Appendix C, Figure 2, taken at a local Wal-Mart store, clearly shows that the healthier frozen entrées are placed together just as they were at the grocery store. Stouffer’s Healthy Pantry products will be placed to the left of these entrées, directly between them and the other Stouffer’s products. Drugstores Many drugstores, such as Pharma Plus and Shopper’s Drug Mart, now incorporate a limited grocery section in their stores. Space is at a premium in these mini grocery sections and, once the new line gains popularity and support, Healthy Pantry may be the only Stouffer’s entrées carried by these stores. Initially, however, both original and Healthy Pantry products will be displayed equally, helping the new products gain awareness and credibility through brand association. Once again, it is important to display the Healthy Pantry products with competing healthier meal options using the same setup and placement as the other larger retailers. The key difference between drugstores and the other retailers described is the limited variety and quantity of each entrée offered (see Appendix C, Figure 3). It is interesting to note the repetition in placement and layout that becomes evident from store to store. Clearly, retailers and producers have determined that, in order to effectively sell this product category, products must be organized, clearly differentiated and, most importantly, highly visible to consumers. Frozen entrées can be either an impulse buy or a regularly purchased item. Often, a consumer doesn’t think of buying these products until they are already in the store and realize that they will not have time to prepare a meal. In this case, clearly displaying the health and nutrition benefits of Stouffer’s Healthy Pantry Meatloaf will be key to enticing the consumer to buy this new product over other available products. Other consumers regularly purchase this product category and arrive with a specific entrée or brand in mind. If Stouffer’s Healthy Pantry Meatloaf is not clearly visible and does not immediately capture their attention, the likelihood of a sale will be greatly reduced. Again, clear lines that draw the eye to these new entrées are crucial. 11 Price Strategy Price Strategy Stouffer’s frozen entrées currently sell for between $2.99 and $3.49 per 263g package at most retail outlets, with the price dropping to $1.99 during a sale. Competing products, like Lean Cuisine or Smart Ones, are priced similarly. Stouffer’s Healthy Pantry Meatloaf will use a status quo pricing strategy, maintaining a price that is similar to the original and to competing brands. A price skimming strategy would price the product out of reach of some of its target consumers, resulting in lost sales and lost profit. A penetration pricing strategy would mean Stouffer’s was selling the new product for less than it could, again resulting in lost profit. A status quo pricing strategy places the new product at a price that target consumers are willing and able to pay for a frozen entrée, enticing them to try it and become repeat purchasers, resulting in maximized profit for Stouffer’s. Planned Price Promotions Stouffer’s Healthy Pantry Meatloaf will follow the same sale cycles as Stouffer’s original entrées, regularly going on sale for approximately $1.99 (depending on the retailer). This gives consumers an opportunity to try the new product at a discounted price. Once they have tried it, they will want to purchase it again, even at full retail value. In addition to regular sales, manufacturer coupons offering multiple-purchase discounts such as “Buy 2, Get 1 Free” will be available in-store and online, driving additional sales of the product. This coupon campaign will run until sales numbers reach a self-supporting level. In order to entice consumers to try the new product and also to engage them with the brand, Stouffer’s will offer a high-value coupon exclusively through social media. Consumers who “Like” Stouffer’s Canada on Facebook will be offered a coupon for a free Stouffer’s Healthy Pantry Meatloaf entrée, enabling them to try the new product at no risk. Once they have tried and enjoyed it, they will want to purchase it in the future. Pricing Tactics Stouffer’s will use quantity discounts, odd-even pricing, and single-price tactics to promote the new Stouffer’s Healthy Pantry Meatloaf. In addition to regular sales, Stouffer’s will periodically 12 work with retailers to offer quantity discounts, providing significant savings to consumers if they purchase multiple units. For example, Sobeys may advertise a quantity discount of “Buy 2 for $3” in their weekly flyer. The manufacturer coupons mentioned as a planned price promotion is another example of this pricing tactic. This tactic builds customer loyalty and boosts sales by encouraging the purchase of multiple units. Stouffer’s will use an odd-even pricing tactic, using odd-numbered prices to indicate to consumers that they are receiving a bargain. Suggested retail price for Stouffer’s Healthy Pantry Meatloaf will be $3.49 with a recommended sale price of $1.99. Although the difference between $3.50 and $3.49 is insignificant, psychologically the consumer feels that they are getting good value for their money. As a final pricing tactic, Stouffer’s will use a single price for its entire line of frozen entrées, including Stouffer’s Original, Stouffer’s Healthy Pantry, and Stouffer’s Bistro. This simplifies the purchase decision for consumers, taking price out of the equation and allowing them to make a selection based on their desired characteristics. This also ensures that there is no barrier preventing consumers from choosing the new Healthy Pantry entrée. Expected Future Pricing We anticipate that, over time, the health benefits of Stouffer’s Healthy Pantry entrées will become highly sought after. Key indicators of this type of demand will be a sustained spike in sales or a consumer-accepted price increase of a competitor’s similar offering. When this occurs, subtle changes to the packaging or ingredients will allow Stouffer’s to reintroduce the product line at a higher price. Although this is not the immediate objective, it is something that Stouffer’s should continue to monitor in order to ensure maximum revenue. Promotion Strategy Our recommended promotional mix for Stouffer’s Healthy Pantry Meatloaf includes advertising, public relations, social media, sales promotion, personal selling, and direct response (see Appendix D for timeline). Promotional efforts for the original Stouffer’s entrées will be largely reallocated to the new product line during its introductory stage. 13 Advertising Pioneering advertising for Stouffer’s Healthy Pantry Meatloaf will create awareness and stimulate interest in this new product. Our recommended advertising campaigns will incorporate several different advertising appeals: Emotional – playing on the nostalgia of a brand that many consumers grew up with as well as the emotional connection to the type of homestyle comfort food Stouffer’s is known for; Health – Stouffer’s Healthy Pantry Meatloaf provides health benefits (i.e. gluten-free) not currently available from any other major brand of frozen entrée; and Convenience – frozen entrées are quick and easy to prepare for those who lead busy lives. Advertisements will use a lifestyle executional style, demonstrating how well the product complements consumers’ busy lives. All advertisements will focus on the product’s unique selling proposition – that Stouffer’s Healthy Pantry Meatloaf provides a healthful version of classic homestyle dishes from a trusted brand. Ads will be designed to create awareness, interest, and demand for the new product by educating consumers about the health benefits it offers over other products. Our recommended media mix for Stouffer’s Healthy Pantry Meatloaf includes television, magazines, outdoor media, and the Internet, and is designed to maximize the campaign’s reach among Stouffer’s target audience. Where? Television Food Network National news stations (CBC, CTV) Pulsing media schedule Ads to run from January to June: continuous scheduling throughout the week (concentrated during the hours 7 – 10 AM and 7 – 10 PM) with flighted scheduling on Thursday and Friday, leading up to the weekend when many people do their grocery shopping Prevention, Taste of Home, store publications (e.g. Sobeys Inspired) Ads to include a cents-off coupon to encourage purchase When? Magazine Where? 14 When? Where? Outdoor Media When? Continuous media schedule Because magazines have a longer life span and because consumers need to see a message repeatedly to remember it, we recommend that ads repeat in each issue for the entire year Billboards Bus shelters and buses Seasonal media schedule January to March – beginning of the year when many people have made health-related resolutions September to December – school and extracurricular activities begin meaning families are busy with less time to cook, holiday time is always busy Where? Search engine paid placement ads for keywords like frozen dinner, gluten free, Celiac Disease, hypertension, etc. Banner ads on relevant websites like Food Network, grocery chains, etc. When? Continuous media schedule Search engine paid placement ads: January to December Banner ads: January to June Internet Public Relations Sponsorship: Beginning in June 2014, Stouffer’s will launch a public relations sponsorship campaign. During the campaign period, consumers who “Like” Stouffer’s on Facebook can vote for one of five health-related Canadian charities. Stouffer’s will donate a portion of the proceeds from each Stouffer’s Healthy Pantry Meatloaf entrée sold during the campaign to the charity that receives the most votes. The sponsorship campaign will be promoted on product packaging, in Healthy Pantry advertising, and on Stouffer’s website and Facebook page. In addition, each of the charities can promote the campaign on their website, encouraging consumers to buy the product and vote for that charity, resulting in additional promotion at no cost to Stouffer’s. Media Relations and Product Publicity: At various times throughout the year, Stouffer’s will distribute relevant news releases to garner publicity. Potential topics include the health benefits of the new product itself, advances in research and development at Nestlé’s frozen food research 15 facility, and the ways in which healthy eating choices (including Stouffer’s Healthy Pantry) can impact consumers’ lives. Social Media A social media campaign provides an exciting medium for Stouffer’s to engage its consumers and will include the company’s website, social networking sites, and media sharing sites. Stouffer’s website has an underutilized discussion forum which they call Real Talk. This forum provides an excellent opportunity to receive feedback from customers, helping to guide future promotions, product improvements, and new product development. Revitalizing this discussion forum will be easy and inexpensive. In addition to its website, Stouffer’s will launch a Canadian Facebook page. This page will be used to promote new products, conduct surveys, create dialogue with consumers, manage promotions, and promote healthy eating choices. Consumers who “Like” the Facebook page will be eligible to receive exclusive coupons, creating an incentive for people to connect with Stouffer’s. A Twitter presence will provide an additional way of informing target consumers of product developments and upcoming promotions. The popularity of media sharing sites, such as Instagram, offers Stouffer’s an additional venue to reach its target audience. Asking consumers to post pictures showing how much they love Stouffer’s Healthy Pantry Meatloaf, or demonstrating creative ways to use the product in a meal is a fun way to engage consumers and promote the product at the same time. Sales Promotion Consumer sales promotions will be used to create incentives for consumers to purchase Stouffer’s Healthy Pantry Meatloaf. Some sales promotions, including cents-off and free product coupons, have already been discussed. An example of a coupon encouraging the purchase of multiple units is shown in Appendix E. Additional sales promotions will include loyalty marketing programs, sampling, and point-of-purchase promotion. The Stouffer’s Rewards program is a loyalty marketing program that encourages consumers to continue buying Stouffer’s entrées. Like other Stouffer’s products, Stouffer’s Healthy Pantry Meatloaf will provide points which consumers can collect and redeem for merchandise. 16 Sampling offers consumers the opportunity to try a product risk-free. Stouffer’s Healthy Pantry Meatloaf will be sampled in grocery stores and at consumer food shows, allowing both new and loyal customers to taste the product. This will help change consumers’ perceptions of the product category as well as the product itself. Potential customers who believe frozen entrées are unappetizing may change their mind after having tasted it. Loyal customers who fear the healthier version may not taste as good as the original will have an opportunity to try it and decide. In both cases, sampling combined with a cents-off coupon will increase sales. Personal Selling Since Stouffer’s Healthy Pantry Meatloaf is the first in a new product line, it is important to persuade retailers to make space for it in their grocery freezers without removing the original product. Because of its unique health benefits, the Healthy Pantry line may also appeal to new retailers, such as health food stores, that have not previously carried Stouffer’s products. Stouffer’s will use a push strategy to “push” the product to the wholesaler, then on to the retailer, and finally to the consumer. Personal selling to grocery buyers, both in their workplace and at trade shows, is important to ensure the product receives maximum distribution. Direct Response We have already discussed a number of promotions that can also be considered direct response communication. Stouffer’s magazine advertising will include a cents-off coupon, asking readers to make a purchase. Internet banner ads will ask consumers to click through to the Stouffer’s website or Facebook page to find more information, download a coupon, or enter a promotion. These are all examples of direct response communication that will help create awareness of Stouffer’s Healthy Pantry Meatloaf and stimulate sales. Conclusion Stouffer’s has been a leading brand in the frozen food industry for over 50 years. By developing products that offer consistent appeal, quality, and good taste, Stouffer’s has developed a loyal customer base for their line of frozen entrées. Stouffer’s Healthy Pantry Meatloaf offers that same quality and value to consumers seeking healthier meal solutions that do not contain white flour. Those with dietary restrictions, digestive problems, allergies and/or weight issues will now 17 be able to enjoy the convenience of a frozen entrée, knowing that they have made a wise and nutritious choice that promotes their health and wellbeing. We expect that the introduction of Stouffer’s Healthy Pantry Meatloaf, using the product, place, price, and promotion strategies outlined in this report, will attract new customers to the Stouffer’s brand, expanding its loyal customer base and generating increased sales, revenue, and profit for the company. 18 Bibliography Nestlé S.A. “The Ten Principles of Business Operations.” The Nestlé Corporate Business Principles. Vevey: Nestlé S.A., 2010. 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Canadian Food Inspection Agency. “Consumer Advisory - Certain Stouffer’s Bistro brand pizza is being recalled due to a labelling issue.” Canadian Food Inspection Agency. http://www.inspection.gc.ca/aboutthe-cfia/newsroom/food-recalls-and-allergy-alerts/complete-listing/2011-0811/eng/1354026926773/1354026926789 (accessed July 14, 2014) Stouffer’s. “Real Talk.” Nestlé Canada. http://www.stouffers.ca/blog/post/2009/07/27/Health-factors-andfrozen-foods.aspx (accessed July 14, 2014) Wikipedia. “Hypermarket.” Wikipedia. https://en.wikipedia.org/wiki/Hypermarket (accessed July 14, 2014) Works Cited 1 Global Healing Center, “White Flour: How Healthy is it for You?” Global Healing Center, http://www.globalhealingcenter.com/nutrition/white-flour-toxins (accessed July 14, 2014) 2 Catherine Guthrie, “The Truth About Grains: Whole and Refined,” Experience Life, http://experiencelife.com/article/the-truth-about-refined-grains/ (accessed July 14, 2014) Nestlé S.A., “Stouffer’s,” Nestlé Global, http://www.nestle.com/brands/allbrands/stouffers (accessed July 14, 2014) 3 4 Nestlé S.A., “Stouffer’s,” Nestlé Global, http://www.nestle.com/brands/allbrands/stouffers (accessed July 14, 2014) 5 Nestlé S.A., “Key Dates,” Nestlé Global, http://www.nestle.com/aboutus/keydates (accessed July 14, 2014) 6 Nestlé S.A., “The Ten Principles of Business Operations,” The Nestlé Corporate Business Principles (2010): 6. 7 Nestlé S.A., “What is Creating Shared Value?” Nestlé Global, http://www.nestle.com/csv/what-is-csv (accessed July 14, 2014) 8 Nestlé S.A., “Managing Nutrition,” Nestlé Global, http://www.nestle.com/csv/nutrition/managingnutrition (accessed July 14, 2014) 9 Nestlé S.A., “Our Commitments,” Nestlé Global, http://www.nestle.com/csv/what-is-csv/commitments (accessed July 14, 2014) 10 Nestlé S.A., “New R&D investment will strengthen Nestlé’s expertise in frozen and chilled foods,” Nestlé Global, http://www.nestle.com/media/newsandfeatures/ptc-solon (accessed July 14, 2014) 11 Nestlé S.A., “New R&D investment will strengthen Nestlé’s expertise in frozen and chilled foods,” Nestlé Global, http://www.nestle.com/media/newsandfeatures/ptc-solon (accessed July 14, 2014) 12 Nestlé S.A., “Strategy – Nestlé Roadmap to Good Food, Good Life,” Nestlé Global, http://www.nestle.com/aboutus/strategy (accessed July 14, 2014) 13 Porter, Michael E., Competitive Advantage: Creating and Sustaining Superior Performance. (New York, NY: Simon & Schuster, 1985), 153. 14 Porter, Michael E., Competitive Advantage: Creating and Sustaining Superior Performance. (New York, NY: Simon & Schuster, 1985), 153. 15 Porter, Michael E., Competitive Advantage: Creating and Sustaining Superior Performance. (New York, NY: Simon & Schuster, 1985), 153. 16 Canadian Food Inspection Agency, “Consumer Advisory - Certain Stouffer’s Bistro brand pizza is being recalled due to a labelling issue,” Canadian Food Inspection Agency, http://www.inspection.gc.ca/about-the-cfia/newsroom/food-recalls-and-allergy-alerts/completelisting/2011-08-11/eng/1354026926773/1354026926789 (accessed July 14, 2014) 17 Stouffer’s, “Real Talk,” Nestlé Canada, http://www.stouffers.ca/blog/post/2009/07/27/Health-factorsand-frozen-foods.aspx (accessed July 14, 2014) 18 Wikipedia, “Hypermarket,” Wikipedia, https://en.wikipedia.org/wiki/Hypermarket (accessed July 14, 2014) Appendices APPENDICES Appendix A Ingredients WATER, POTATOES (CONTAIN SODIUM PHOSPHATE), GROUND BEEF, KETCHUP (TOMATO PASTE, WATER, CORN SYRUP, VINEGAR, SALT, SPICES, FLAVOUR, DEHYDRATED ONION, DEHYDRATED GARLIC, MUSTARD FLOUR), ONIONS, ROLLED OATS (CONTAIN BARLEY) – REPLACE WITH CERTIFIED GLUTEN FREE OATS, CHILI SAUCE (TOMATOES, CORN SYRUP, SUGAR, VINEGAR, RED PEPPERS SALT, DEHYDRATED ONION, DEHYDRATED GARLIC, PEPPERS, FLAVOUR), SOY OIL, MODIFIED CORN STARCH, MILK INGREDIENTS, TOMATO PASTE, WORCESTERSHIRE SAUCE (VINEGAR, MOLASSES, WATER, HIGH FRUCTOSE CORN SYRUP, SALT, ANCHOVIES, TAMARIND, SPICES, CELERY SEED, FLAVOUR, COLOUR, ONION POWDER, GARLIC POWDER), GREEN PEPPERS, TEXTURED SOY PROTEIN CONCENTRATE, AUTOLYZED YEAST EXTRACT, WHEAT FLOUR, SALT, POTASSIUM CHLORIDE, SOY SAUCE POWDER – REPLACE WITH GLUTEN FREE SOY SAUCE (SOYBEANS, WHEAT, SALT, MALTODEXTRIN), SUGAR, ONION POWDER, ARRAGEENAN, MODIFIED TAPIOCA STARCH, BROWN SUGAR SYRUP, COLOUR, GARLIC POWDER, LACTIC ACID, CALCIUM LACTATE, FLAVOUR (MALTODEXTRIN, SALT, AUTOLYZED YEAST EXTRACT, SOY SAUCE – REPLACE WITH GLUTEN FREE SOY SAUCE [WATER, SOYBEANS, WHEAT, SALT] BEEF EXTRACT, BEEF FAT, FLAVOUR, TAPIOCA DEXTRIN, DEXTROSE, SOY OIL, MILK INGREDIENTS, LACTIC ACID), SPICES Appendix B Product Packaging – Front Panel Appendix C Figure 1 – Frozen Food Display at a Supermarket Figure 2 – Frozen Food Display at a Hypermarket (Wal-Mart) Appendix C (continued) Figure 3 – Frozen Food Display at a Drugstore (Shopper’s Drugmart) Appendix D Promotion Schedule November 2013 Personal selling to wholesalers & retailers December 2013 Personal selling to wholesalers & retailers January 2014 Advertising – television and magazine Billboards & bus shelters Search engine paid placement ads Online banner ads Public Relations – media relations (news release) Social Media – free coupon to Facebook members Sales Promotion – cents-off and free product coupons, sampling February 2014 Advertising – television and magazine Billboards & bus shelters Search engine paid placement ads Online banner ads Social Media – free coupon to Facebook members Sales Promotion – cents-off and free product coupons, sampling March 2014 Advertising – television and magazine Billboards & bus shelters Search engine paid placement ads Online banner ads Social Media – Instagram promotion Sales Promotion – cents-off and free product coupons April 2014 Advertising – television and magazine Search engine paid placement ads Online banner ads Public Relations – media relations (news release) Sales Promotion – cents-off and free product coupons May 2014 Advertising – television and magazine Search engine paid placement ads Online banner ads June 2014 Advertising – television and magazine Search engine paid placement ads Online banner ads Public Relations - sponsorship July 2014 Advertising – magazine Search engine paid placement ads Public Relations – sponsorship, media relations (news release) Social Media – Instagram promotion August 2014 Advertising – magazine Search engine paid placement ads Public Relations - sponsorship September 2014 Advertising – magazine Billboards & bus shelters Search engine paid placement ads October 2014 Advertising – magazine Billboards & bus shelters Search engine paid placement ads Public Relations – media relations (news release) November 2014 Advertising – magazine Billboards & bus shelters Search engine paid placement ads December 2014 Advertising – magazine Billboards & bus shelters Search engine paid placement ads Appendix E Sample Promotional Coupon