Table of Contents Introduction............................................................................................................... 1 Marketing Objective .................................................................................................. 1 Situation Analysis ...................................................................................................... 2 Stakeholders...............................................................................................................................................................2 SWOT Analysis ..........................................................................................................................................................2 Competitive Analysis..............................................................................................................................................4 Communications Objectives....................................................................................... 5 Target Audience......................................................................................................... 5 Positioning Strategy ................................................................................................... 6 Marketing Mix ........................................................................................................... 7 Past Promotions......................................................................................................... 8 Marketing Communications Tools.............................................................................. 8 Message Design ....................................................................................................... 11 Campaign Theme .................................................................................................................................................. 11 Strategies for Stakeholders............................................................................................................................... 12 Message Design for Communications Tools.............................................................................................. 12 Message Delivery..................................................................................................... 15 Evaluation................................................................................................................ 18 Budget Allocation .................................................................................................... 19 Conclusion ............................................................................................................... 20 Page 1 Introduction Fusion Marketing is composed of a diverse group of first‐year marketing students. As requested by professors Geoffrey Bird and Matthew Rockall, Fusion Marketing has been given the task of coordinating an Integrated Marketing Communications campaign for a product that is available nationwide and is celebrating an anniversary. This report focuses on an IMC campaign for Kraft Singles who is celebrating their 45th Anniversary. Kraft Foods is the second largest confectionery, food and beverage corporation in the world next to Nestle (Wikipedia, 2010). Canadian born James Lewis Kraft founded Kraft Foods in Chicago in 1903. Through many large mergers and key acquisitions, Kraft has grown to operate eleven $1 billion brands and over seventy brands worth over $100 million in equity (Kraft Foods, 2010). Kraft Foods Inc. introduced Kraft Singles in 1965 (MLive.com, 2009). These individually packaged processed cheese slices have been a staple in many households across Canada for decades. For years they have been the number one selling processed cheese slice in North America (Nuke Search, 2009). The anniversary provides Kraft Singles slices with an opportunity to regain the lost market share, which has occurred due to consumer brand switching and product category departure. This IMC campaign will create awareness of the anniversary and will follow the creative theme ”Some things never change”, referring to the different eras and many years that consumers have enjoyed Kraft Singles. To communicate this effectively, Fusion Marketing has developed marketing and communications objectives. The vehicles in which to deliver these messages are outlined in the report, accompanied with an overview of the strengths and weaknesses for each. A detailed situation analysis, message design, media schedule, and budget allocation have been offered to better explain each step in this IMC plan. Marketing Objective By targeting mothers aged 25 to 44, the sales volume will be increased by five percent from last year’s net profit of $380,000,000 to $399,000,000 for the 12‐ month period starting May 2010 to April 2011 using a budget of $5,000,000. Page 1 Situation Analysis Stakeholders Kraft Foods stakeholders consist of: • Board of Directors • Shareholders • Suppliers and retailers • Customers. • Employees Shareholders and customers make up the largest portion of stakeholders for Kraft. With solid management practices and rich human capital, Kraft has been able to satisfy the needs of hundreds of thousands of shareholders. Kraft has been positioned as a world leader in the food and beverage industry. These loyal consumers are often repeat buyers and have shown brand loyalty going back decades. SWOT Analysis Strengths Kraft is the largest confectionery, food, and beverage corporation in North America and the second largest in the world (Kraft Foods, 2010). Their size allows them to diversify operations and offer their products globally through their many distribution networks in over 160 countries worldwide. Another strength is their legion of loyal, repeat customers. This is a great strength because it shows that Kraft has great brand equity and strong brand awareness. With their rich history dating back over 100 years, Kraft has positioned themselves as a reliable and well‐managed company. This satisfies the needs of the stakeholders and proves that they are financially healthy. Kraft continues to maintain a positive brand image in the market place. In the past 25 years they have managed to raise 770 million dollars in cash and food. In addition, they have created programs to help the lifestyles of North American children (Kraft Promotions, 2010). Kraft holds an extended product breadth and depth. This enables them to cover an extensive target market and offer products to a wide range of customers. Another strength for Kraft has been their continuous marketing campaigns and their strong focus on research and development. This allows Kraft to create new products frequently, and aggressively advertise them. Page 2 Weaknesses Kraft has been accused of false advertisements in the past. Kraft falsely represented Kraft Singles for containing as much calcium as a five‐ounce glass of milk (Google News, 2009). This has compromised their brand image. Kraft has had difficulty launching new brands. Most of their growth has been dependant on acquisitions and mergers. This demonstrates their dependency on the success of other companies. Food recalls are another weakness that has hindered the company’s brand equity. In June of 2008 there were 12,553 cases of Mixed Berry Crunch Cereal that contained nuts that were not declared. This is a serious health issue that can cause severe medical complications and even death. In March of 2009 they had to issue a recall on pistachio nuts that contained salmonella (Datamonitor, 2009). Opportunities The international market poses a great opportunity for Kraft to continue diversifying operations (WikiSwot, 2009). With the increase in globalization, Kraft can uphold their position as a global leader in the food industry. More acquisitions and mergers are another opportunity for Kraft to continue growing. Their strategy has been proven due to their inherent success of past acquisitions and mergers. There is potential for new product categories. Kraft’s size creates the opportunity to increase product breadth and product depth. Threats A significant threat is the potential for unsafe food practices. This can lead to an outbreak of disease and in the worst case, death. This can have devastating consequences and can damage a company’s reputation. Recently, 22 people died nationwide from eating Maple Foods Inc. products that contained the listeriosis strain (Times Colonists, 2009). The current economic downturn is a threat to Kraft, especially for the premium priced products. This could change the habits of loyal customers and force them to search for cheaper alternatives. In the midst of a global recession they are also faced with higher production and food costs. This is a threat because it may put Kraft in the position to raise their prices and again steer away their loyal customer base. Fierce competition is another threat. Fast growing companies such as Heinz and ConAgra Foods threaten to take more of the market share away from Kraft. This forces Kraft to constantly be looking for new ideas and new products. Page 3 Current trends are leaning toward healthier food products such as organically grown foods. This poses a threat to Kraft since most of their food products are processed. While Kraft does hold the large majority of the market share for processed cheese, the category itself has been declining over the previous years with 6,181,000 tonnes sold in 2008 and only 5,987,000 tonnes sold in 2009 (Datamonitor, 2009). This has the potential to severely threaten Kraft’s current product lines and may force them to consider this trend in future endeavors Competitive Analysis Table 1 compares the various brands competing in the “processed cheese slice” market (Based on “Original” Thick Cheddar (per slice)). Black “No Name” Laughing Cow Diamond Cheese Slices Cheese Slices Kraft Singles Cheese Slices Varieties 3 4 3 6 Price $.31 $.21 $.27 $.31 Calories 90 90 85 80 Calcium 15% 10% 15% 15% Protein 5 g 5 g 4 g 5 g Table 1 – Competitor Comparison Kraft offers the most variety of cheese slices on the market. They are sold under three separate names; Kraft Singles, Cracker Barrel cheese slices and Velveeta slices. Their “Kraft Singles” line is the most popular, with six varieties, “Cracker Barrel cheese slices” with two varieties and “Velveeta slices” with two varieties. Kraft Singles offer the least amount of calories per slice when compared to its competitors and continues to be the most preferred processed cheese slice in Canada (Kraft Foods, 2010). Kraft Singles held 54.2 percent of the processed cheese market share in 2007. (See Appendix 14 for processed cheese market share.) Kraft Singles’ competitors are evenly matched. “Black Diamond” offers good quality slices at the same price as Kraft; however, they do not offer as many varieties. “No Name” brand slices do not have as much to offer nutritionally, or have as many varieties, but they are less expensive. “Laughing Cow” slices are similar to Kraft, but their downfall is a lack of variety. Kraft Foods’ number one competitor is ConAgra Foods. ConAgra Foods’ annual net income for the year 2009 was $978 million and $12.7 billion in net sales. Their common stock price at the year‐end was $18.59. ConAgra Foods currently employs 26,500 workers throughout Canada and the United States. Part of their success and ability to compete against Kraft Foods is their solid reputation of corporate social responsibility. Page 4 Communications Objectives This campaign’s main communication objective is to increase repurchasing of Kraft Singles slices by five percent among the target audience consisting of Canadian mothers between the ages of 25 and 44 living in suburban areas. In order to effectively reach the objective of repurchase, the campaign will go through the following stages of the communication effects pyramid from May 2010 to April 2011 (see Appendix 3). Awareness: Advertisements will convey to ninety percent of the target audience the message that it is Kraft Singles’ 45th anniversary. Knowledge: Sixty percent of the target audience will understand that the Kraft brand has been a reliable and memorable part of their childhood. This message will be conveyed through emotional appeal and inherent drama in the advertisements involving outdoor advertising, print, radio and television. Liking: Thirty percent of the target audience will be convinced that Kraft Singles are a compassionate and generous brand within the processed cheese category. Through sweepstakes and charitable public relations, their brand image will become more favorable. Preference: The campaign will stimulate brand preference for Kraft Singles by encouraging brand switching and brand‐retrial purchase among 15 percent of the target audience. These consumers will prefer Kraft Singles to the competition, due in part to social media such as Facebook as well as Mommy blogs. Trial: To stimulate brand trial among ten percent of the target audience, point of purchase coupons will be offered as incentives for new category users and brand switchers. Repurchase: All previous steps will aid in achieving the communications objective to maintain regular purchasing patterns of Kraft Singles among five percent of the target audience. Direct mail will be used to encourage brand loyalty. The effectiveness of the campaign will be measured through various posttests (see Evaluation). Target Audience Demographic: Kraft Singles slices have traditionally targeted mothers as consumers because they are the main purchasers of processed cheese slices (Kraft, 2009). Page 5 This campaign will continue to target Canadian mothers with young children because of their strong brand loyalty to Kraft (The Integer Group, 2009). According to Statistics Canada, the average age of mothers giving birth in 2006 was 29.3 years old; therefore, mothers aged 25 ‐ 44 will be targeted, who will likely have children aged four to thirteen. In 2006, there were 3.9 million mothers in Canada with children under the age of 18 residing in their home (Stats Canada, 2009). Kraft will target mothers who are category and non‐category users, brand switchers and brand re‐trial purchasers. Geographic: The campaign will target mothers who reside in Canadian suburbs rather than the largest urban cities. The municipalities on the outskirts of the large cities have seen significant population growth according to Stats Canada (2009). Kraft Singles recently launched an American campaign, which targeted smaller town American families, asking them “What’s the single best town in America?” One of the communications objectives of this campaign was to increase brand switching among heavy users of the product category for processed cheese. This campaign saw a great success with sales of Kraft Singles increasing by five percent between September ‘09 and January ’10, matching the communication objective of the 45th Anniversary campaign (Wong, Elaine, 2010). Psychographic: One of the main threats to the product category of processed cheese is that it is less nutritional than other cheese. Consumer values are consistently following the health conscious trend. However, individuals living in cities value nutrition and health significantly more than those residing outside the cities (Urban Toronto, 2006). Therefore, mothers from surrounding suburbs will be more likely to buy processed foods. The target audience has become increasingly busy, with an average of 209 minutes per workday spent with family in 2005 compared to 248 minutes on average in 1986 (Stats Canada, 2009). This shift in lifestyle can be attributed to an increase of mothers in the workforce and changes in household norms. Therefore, the target audience will benefit from the convenience of Kraft Singles slices. Positioning Strategy The positioning strategy for Kraft Singles Slices IMC campaign will be central positioning. Kraft held 54.2 percent of the North American market share for processed cheese in 2007 (Dorfman, Brad, 2007). Because Kraft has been a consistent market share leader in the processed cheese category, it can claim on the most salient benefits such as high reliability and trust which is among the most important concerns for mother consumers (Fortner, Laura, 2010). Kraft has a strong brand image. In fact, it is one of the highest selling cheese brands globally and the top retail value cheese brand in Canada (Datamonitor, 2009). Page 6 Kraft maintains a premium image in the marketplace; for example, a study has shown that while US consumers believe price to be the most important attribute regarding grocery purchases, Kraft is among the least likely to be traded in for cheaper brands (The Integer Group, 2009). Therefore, the positioning strategy will rely heavily on Kraft’s brand image within the marketplace. The campaign will use reminder advertising to promote the idea that Kraft Singles slices have been an integral part of the target audience’s journey growing up. Marketing Mix Product Kraft Singles was the first processed cheese product on the market. Compared to imitation cheese slices made mostly with vegetable oil and water, each quarter‐ ounce slice of Kraft Singles contains the protein and calcium equal to approximately five ounces of milk. Kraft Singles have been Canada's best selling processed cheese slices since they were first introduced 45 years ago (Kraft, 2010). Price The price varies according to the different sizes of Kraft Singles packaging. They are sold in packages of: 8, 12, 16, 24 and 48 slices. With online sales growing exponentially in the past 10 years, they now offer bulk discounts between ten to 45 percent off. (Kraft, 2010) Kraft Singles are one of the most expensive brands of processed cheese. However, compared to the competition, they have the lowest calorie count. In addition, Kraft Singles provide a wider variety for consumers to choose from. It has been priced based on the value of the product as perceived by consumers. Based on the different types of consumers and distributors, Kraft provides multiple choices for payment and shipping. Compared to similar processed cheese brands such as Black Diamond, Laughing Cow and other supermarket brand cheese, Kraft Singles has a strong price advantage to hold and control the processed cheese market (Kraft, 2010). Place Almost every Canadian supermarket and retail store sells Kraft Singles cheese slices. Kraft has business affiliations with many school cafeterias and food courts around the country to provide them with Kraft Singles slices. (Kraft Canada Inc, 2010). There are approximately 45 warehouses in Canada that provide 30,000 tonnes of cheese to the North American market. Strong inventory management has had a Page 7 positive influence on the sales of Kraft Singles and has helped increase the confidence of Kraft's stakeholders. (Kraft Canada Inc, 2010) Kraft utilizes the online service to handle the large volume of orders nationwide. Their distribution network is so advanced that an order placed online can be delivered to the consumer within 36 hours. Past Promotions In 2007, Kraft held the “Have a Happy Sandwich” contest. It invited people to create their own ten to fifteen second interpretation of a Kraft Singles “Have A Happy Sandwich” commercial. The winner received $50,000 and had their video brought to life as a national commercial. Kraft was using a creative strategy to get customers involved into the commercial making process, which increased the brand awareness (Kraft Foods, 2010). In 2008, Kraft made a series of commercials to emphasize that Kraft is not only a healthy product, but inexpensive as well. At that time, the world economy was down, so Kraft was making great efforts to change their brand image. In 2009, Kraft collaborated with Disney to promote Kraft Singles. By buying Kraft Singles, customer got the chance to get a free song, a video, and an exclusive poster from the “Jonas Brothers” (Disney, 2009). Marketing Communications Tools LEAD TOOLS Advertising is the lead marketing communications tool, which incorporates television, print, radio and outdoor advertising. Some media objectives of advertising are to promote brand awareness, category need and a positive brand attitude among the target audience through sufficient campaign exposure. This communication tool will increase awareness among 90 percent of the target audience that it is Kraft Singles Slices 45th Anniversary. It provides the campaign with the greatest reach and coverage among mothers aged 25 ‐ 44. From a creative standpoint, advertising is the most effective media tool to execute the intended emotional response from the target audience. Advertising will allow Kraft to zero in on certain television and radio channels, which mothers will likely tune in to. Page 8 Strengths: • Various advertising media provides widespread access to the target audience • Helps increase awareness among 90 percent of the target audience which meets the communication objectives. • Increases knowledge and enhances the perception for a favourable brand attitude to 60 percent of the target audience. Weaknesses: • Advertising is a costly medium. • It is difficult to measure whether or not the target audience has received the message (selective attention/retention). • Clutter and noise can lead to a misinterpretation of message. The second lead communications tool is promotional activities, which includes sweepstakes and point of purchase coupons. According to a survey conducted by the Retail Advertising and Marketing Association (2009), companies providing promotions and discounts have a large influence on consumer mothers. Promotional activities will prompt brand trial and re‐trial purchase as well as brand switching among the target audience. With the instability of today’s economy, consumer trends have shifted towards comparison‐shopping. Because Kraft Singles are more expensive than many competitors, they will need to offer promotions as incentives for trial. A study done by The Integer Group in 2009 concluded that approximately 80 percent of consumers seek products that are on sale and shoppers older than 35 are likely to use point‐of‐purchase coupons (The Integer Group, 2009). Strengths: • Helps to achieve the communication objective of a 10 percent increase in brand trial. • Creates a buzz and stimulates word of mouth amongst mothers, which is very important for this specific target audience (Fortner, Laura, 2010). • Helps match the communications objective of increasing liking by 30 percent. Weaknesses: • Over‐exposure could lead to inefficiency (wasted coverage). • Is a costly means of communication. SUPPORTING TOOLS To support the campaign, Kraft will use E­marketing through Facebook, Mommy blogs and the Kraft website. Page 9 There is a high use of social networks and mobile “texting” and web browsing among this target audience (Fortner, Laura, 2009). Women with children at home are 60.3 percent more likely to use Facebook than average adults. Furthermore, mothers with young children are likely to surf the Internet in search of deals (Retail Advertising and Marketing Association, 2009). A study released by BabyCenter in 2009 found that the number of mothers who use social media had jumped 462 percent since 2006, proving that mothers are becoming more technologically savvy and offering E‐marketers a massive opportunity. E‐marketing will meet the communications objective of a 15 percent increase in preference (Retail Advertising and Marketing Association, 2009). Strengths: • Sixty‐three percent of mothers use the internet (SoftPedia,2009). • E‐marketing is cost effective. • It is convenient for mothers. • There are no boundaries geographically. • The scheduling is flexible. • There are tracking capabilities available through online website trackers. Weaknesses: • It is easy for mothers to discard the message. • Technical difficulties may impede on internet marketing efforts. • Messages may get lost or overlooked amongst other ads. Another supporting communications tool for Kraft Singles Slices is Public Relations. This method will help to attain the communications objective of achieving a 30 percent increase of brand liking among the target audience. In today’s market place, there are many brands competing for consumers, so being able to find brands which mothers can trust is very important to them (Fortner, Laura, 2010). Strengths: • Public relations helps increase the liking of the company and the brand. • Can build good rapport with traditional non users. • It is a useful means of damage control. Weaknesses: • It must be direct and avoid misleading the public. • The brand could possibly be lost or forgotten within the communications process due to noise. • It is difficult to measure whether or not the target audience has received the message (selective attention/retention). Page 10 The final supporting tool will be Direct Mail where Kraft will communicate their appreciation to their customers. This will increase brand loyalty among the target audience and help to attain the communications objective of repurchase among five percent of the target audience. Mother consumers value companies who make them feel part of that brand (Fortner, Laura, 2010). By communicating through Direct mail, mothers will realize that they are an integral component of the company. Strengths: • There are tracking capabilities through subscriptions for Kraft’s “What’s Cooking” magazine. • Feedback capabilities are possible through surveys and/or questionnaires. • The accessibility of mail allows for scheduling flexibility. Weaknesses: • Can be intrusive for a busy mother. • Can be easily discarded or overlooked amidst other flyers or ads. • High frequency can be costly for the company. Message Design Campaign Theme Forty‐five years ago, Kraft Singles cheese slices were introduced as the convenient, calcium filled, cheese snack perfect for any classic grilled cheese sandwich at any occasion. As styles change, trends develop and inventions change the way people think about the food industry, the classic grilled cheese sandwich has been significantly timeless throughout the years of the target audiences’ lives. Using emotional appeal through nostalgia, the campaign theme for Kraft Singles’ 45th anniversary is: “Some Things Never Change”, with the French translation “Quelques choses ne changes jamais”. To increase repurchase of the product among the target audience, memories of mothers childhoods will remind them that this classic product should be purchased once again for their children. In order to convey this emotional message to consumers, the campaign will feature characters, who can be depicted through the IMC campaign growing up through the 1960’s to 2000’s, enjoying Kraft Singles grilled cheese that remains the same while they continue to change, as well as the atmosphere and setting. Page 11 Strategies for Stakeholders Customers – Customers will be reached through advertisements and promotional activities as lead tools, with supporting tools of public relations, E‐marketing and direct mail. Suppliers and Retailers – Suppliers and retailers will be informed well ahead of time in order to be able to gain an understanding of the campaign and enhance their performance during the campaign through a detailed e‐mail. Employees – Employees will be given an informative lecture regarding the campaign so they are familiar with concepts during the course of their work. Board of Directors – The board of directors will be the first to hear and approve of the campaign through a detailed e‐mail and will assist in the implementation process. Shareholders – Shareholders will be informed of the campaign prior to its launch through a detailed memo. Message Design for Communications Tools Advertisements The print advertisements for the “Some Things Never Change” campaign will be featured in the channels seen below. Print: Magazines In the selected magazines (see Media/Message Delivery), the print advertisements will consist of one page with a character from each era from the 1960’s through 2010. The ads will be in black and white and have settings corresponding to the era, along with the character in his appropriate attire. The mother will have clothing based on the era. However, the grilled cheese will remain unchanged to draw attention and to depict through the image that while everything changes around the character, the grilled cheese does not, keeping the theme in mind. The logo will be featured in color, as well as a call to action to the website for the integrated promotion. Print: Bus Stop and Skytrain The target audience is frequent public transportation users. (Lamar, 2010). The bus stop advertisements will feature one version from the print sequence (1960’s version, 1970’s version etc.). At the selected sky train stops, the same idea of the print sequence will apply to four skytrain advertisement panels in a row, each with its respective version to tell the story in the few short minutes waiting for their train. Television The selected television channels (see Media/Message Delivery) will bring life to the print advertisements through the use of inherent drama. As seen on the story‐ board (see Appendix 9) the 30‐second commercial begins with a child eating a grilled cheese sandwich prepared by his mother. Page 12 As with the print ads, the grilled cheese remains in color while the story begins in black and white and gradually becomes colorful by the end. The commercial follows the character throughout his life with Kraft Singles, ending with him serving his own daughter the classic snack. The end of the commercial features the tagline “Some Things Never Change” and a call to action. This commercial will also include information on the sweepstakes in the first phase, and details on the public relations charity involvement in the third phase of the campaign. Radio The selected radio stations (See Media/Message Delivery) will consist of a short radio spot that will feature a mother’s voice reciting a story of her life, and how Kraft Singles has been one factor that has not changed while the rest have. The radio advertisement will be in English in all provinces except for Quebec, which will be in French (See Budget). (See Appendix 6 for Radio Scripts). Promotion Along with implementing the “Some Things Never Change” campaign, the promotional activity to celebrate Kraft’s 45th anniversary will be launched while keeping integrated with the overall theme. “Some Things Never Change” Sweepstakes The campaign will feature incentives for the target audience to purchase the product, thus accomplishing the marketing objective to increase sales by five percent. An integrated sweepstakes promotional activity allows consumers to get involved with a contest that both mothers and children will be excited about. The “Some Things Never Change” sweepstakes allows consumers to enter into in a contest to win a family trip to Disneyland by being the first to collect and mail in all five Kraft Singles Decades Cards. In each package of Kraft Singles, there will be a card with a photo depicting a certain year and a related image (see Appendix 8). When a consumer collects all five and mails them in on the collection sheet distributed at grocery stores where Kraft Singles are sold, they will enter a draw to win the trip for their family. This gets children excited about the card collection and trip, while the parents benefit from the savings. The deadline will be December first 2010, and the winner will be randomly selected. Second and third place prizes will be awarded as well, some of which are a new car and kitchen set (See Budget for details). “Some Things Never Change” Point of Purchase Discounts During phase three of the campaign (from January 2011 until April 2011), point of purchase discounts of 20 cents will be allowed to celebrate the 45th anniversary of Kraft Singles. This is expected to generate large profits during the sweepstakes prior to this activity. While the sweepstakes draws in monetary profit, the point of purchase discount allows Kraft Singles to capture potential favorable brand switchers. All grocery stores and retailers will be informed of this well in advance. Page 13 Public Relations Public relations will be covered through charity work with Osteoporosis Canada. This will generate a positive brand image during the designated month within the yearlong campaign. “Some Things Never Change…But You Can Make One.” C.S.R. Plan Through Corporate Social Responsibility, Kraft’s Campaign will work with Osteoporosis Canada to celebrate their anniversary during the month of March 2011. For years, Kraft Singles has been featuring the benefits of milk and calcium in their slices, relating perfectly to Osteoporosis. Kraft will donate $500,000 from packages sold to this charity as a way to give back. This will be heavily featured through the campaign as “making a change” in the lives of an osteoporosis patient. At the end of the month, media will cover Kraft Singles as they donate the large cheque to Osteoporosis Canada, increasing liking towards the brand by 30 percent to meet the communications objective. E­Marketing The E‐marketing aspect of the campaign will utilize the Kraft Singles website as well as social media tools. Kraft Singles Website The website, with the address www.Kraftsingles.com/anniversary, will have all the information about Kraft Singles as a product, the history behind it through the years and of course details about the campaign. This will include how to send in your sweepstakes decade cards, information on the charity, and a creative layout relating to the characters from the campaign. For a screen shot, see Appendix 4. Social Media Kraft Singles will set up a free monitored Facebook profile for the “Some Things Never Change” anniversary campaign. This high traffic website will allow Kraft to post information directly about the company, sweepstakes and other aspects of the campaign to increase awareness to those members of the target audience who are active Facebook users. Direct Marketing Candidates who submit their entry to the Kraft Single’s “Some Things Never Change” Sweepstakes will receive a letter or e‐mail sent to their corresponding address with a free subscription to ‘What’s Cooking?’. This not only satisfies those customers who did not win through thank you letters, but also increases Kraft’s customer database for future direct marketing endeavors. Page 14 Message Pretesting The messages will be pretested with focus groups consisting of members of the target audience living in select cities in Canada. The locations selected are situated in close proximity to large Canadian cities. They are as follows: • Outside Vancouver (Langley) • Outside Edmonton • Outside Montreal (Gatineau) (Drumheller) • Outside Toronto (Sudbury). • Outside Regina (Saskatoon) These locations were chosen because the target audience resides in suburban areas as opposed to central metropolitan cities. This pre‐testing will take place three months before the launch of the campaign to make necessary changes if concerns or any form of disliking become issues. Kraft can also discern from the pretests which regions will be more favorable towards the “Some Things Never Change” campaign and what aspects are not received well with consumers. The cost of pre‐ testing can be found in the Budget. Message Delivery Contact points, message sources, and specific vehicles are key variables in delivering the right message in a marketing promotions plan. Each variable relies on another to support them in making each other symmetrical. Television Media vehicles used in this campaign will include: • The Food Network­ A 39.3 percent share of all moms’ that watch top cable networks regularly tune into the Food Network (Marketingcharts, 2009; Watershed, 2009)Kraft commercials will be aired once a day for a 12‐week period of time at 5pm. • Slice Network‐ The Slice Network is the premier television station catered specifically to women. Being so, a great deal of the target audience for this campaign will be exposed to the television ads. The Slice Network will host one Kraft Singles ad spot daily at 7pm throughout the 12‐week television advertising campaign. • CTV‐ Commercials will be aired once a day at 6pm during one of the most widely viewed news broadcasts in Canada for 12 weeks. The source of these television spots will indirectly be Kraft Foods. The “Some Things Never Change” television campaign will generate memories of times past in the eye of the specific target audience, which in turn will produce a positive brand and media image. Contact points will include home and office viewing. Page 15 Radio QMFM, a Vancouver based radio station, as well as similar stations throughout Canada have been selected for the specific vehicle to deliver the message to the target audience. Contact points for this advertising medium will be at home, in the car, or in a shopping mall at 8am or 5pm. Selecting these times will ensure maximum amount of target market listeners during morning and evening commute. A voice will act as the source, and will directly deliver the message, which will in turn promote a cognitive and emotional response, which reinforces brand attitude and leads to purchase intent from the target audience. Outdoor Advertising The Skytrain, Skytrain stations, and billboards are the outdoor media vehicles that were also chosen to lead this campaign. Contact points will include Skytrain indoor/outdoor, and bus shelters. Selecting this medium of advertisement will expose the campaign to countless amounts of people within the target audience. Promotion will be heavier at and around stations of the average income demographic using researched geographic statistics. The source of each ad is Kraft who will indirectly deliver the message with a short tag line as well as humor. This will trigger a short emotional response connecting the target audience to the brand. Print Media Vehicles, and contact points to support the print campaign are as follows: Chatelaine – This Consumer based woman’s magazine has a total average circulation of 586,136 readers per issue across Canada (George E. Belch, 2008) This long life span medium has been proven to be one that is retained by a consumer for further reference or even passed on to another consumer. Taking space in a magazine of this prestige will also boost media image within the target market. Contact points will include households, magazine stands, and doctors/dentist offices. Ad space will be purchased for six issues during the Kraft 45 Year anniversary campaign. What’s Cooking – Kraft has its own magazine to promote and display their own products while also supplying people with great recipes to use with their products. Contact points will include households and point of purchase sales. Kraft Singles will be promoted in What’s Cooking throughout the 45th anniversary campaign. Much like the Outdoor Advertising, the source will be Kraft. The message will also be given indirectly with a short tag line and humor, which will trigger a short emotional response connecting the target audience to the brand. Sweepstakes The contact point for sweepstakes segment of the marketing campaign will take place at the point of purchase. Page 16 Kraft Singles packages will act as the media vehicle for this portion of the campaign, and a sweepstakes card will act as the source which will directly deliver the message to the target audience. A cognitive and emotional response will be generated through this segment of the campaign. Point of Purchase Coupon With 84 percent of shoppers seeing brand name products as more expensive (Boomer, 2009; Watershed, 2009)offering a discount to try a product that a consumer would not normally purchase is an effective strategy. The target market has also proven to be the most coupon hungry demographic. As the consumer walks by the dairy section, he/she will notice a coupon directly connected to the Kraft Singles display. The display will act as the contact point while the coupon will act as the media vehicle to directly deliver the message from Kraft of instant savings to the consumer. A cognitive response is created, as the consumer assesses the pros and cons of purchasing Kraft Singles as opposed to the other leading brand. Although Kraft Singles may be the most expensive, this coupon will give people the chance to enjoy Kraft Singles at a price that is now similar to the competition. Direct Marketing Kraft’s monthly magazine “What’s Cooking” will be the vehicle of multiple messages directed at the target audience. Kraft will act as the source to directly outline multiple messages surrounding the campaign such as sweepstakes information, Kraft’s plans for the future, and information on how Kraft is helping to fight osteoporosis. The consumers’ mailbox, as well as inside households will act as the contact point for this vehicle. It will produce a number of different responses including emotional and cognitive towards these messages. E­Marketing Contact points will include any point where online viewing is possible including home, phone, work and Internet kiosks. The Vehicles chosen for this segment of the campaign are as follows: Facebook ‐ With over 400 million active users as of February 2010, more than 20 million people becoming fans of pages per day, and having the average user a fan of at least 13 pages (Hepburn, 2010). Facebook is at the pinnacle of social media for this campaign. A fan Page will outline the company profile, campaign, sweepstakes, and charity work. Kraft will be the source, and will directly deliver the message. Both cognitive and emotional responses will be produced towards the 45th anniversary campaign. Twitter ‐ Twitter has also proven itself to be a viable vehicle for marketing. With usage jumping over 740 percent from 2008‐2009 (Phillips, 2010), and 64 percent Page 17 of its users over the age of 35 (Buzz, Age Distribution On Social Networks, 2010) this vehicle fits snug within the target audience. Updates will be sourced directly from Kraft alerting users of sweepstakes proceedings and general information on Kraft Singles. Kraftcanada.com ‐ Using this vehicle as a base, Kraft acts as the source and is able to directly deliver the message to a consumer for the 45th anniversary campaign. Mommy Blogs – 44 percent of “Tech Savvy” mothers use social media for word‐of‐ mouth recommendations on brands and products. In addition to the previous statistic, 73 percent feel they find trustworthy information about products and services through online niche communities such as parenting, and family blogs. (Watershed, 2009) www.dooce.com and www.coolmompicks.com were selected as the specific vehicles of the message due to the overall nature and traffic of the sites. Dooce.com outlines facts and helpful hints on parenting, while coolmompicks.com gives mothers insight on new products, as well as offering coupons for avid sponsors. Kraft will act as the source of the message on the banners ads and will indirectly deliver the message though coupons offered. Both cognitive and emotional responses will be triggered through this method of advertising. Evaluation To measure whether the communications objectives were met, print ads and broadcast commercials will be evaluated. Print ad posttests ‐ The print ads will be tested heavily using the recognition method. The impact of the ads will be assessed in each magazine across the time the ads are published using the “Starch Ad Readership Report”. This report will allow us to see on average how many readers remember seeing the ads, and how many readers can identify the brand. Broadcast commercial posttests ‐ The most beneficial information to the company will come from tracking studies. This will measure consumer’s awareness of the brand, and more importantly their attitudes towards the brand. To do this, various interviews and surveys will be done with different sample sizes of consumers every quarter. To measure whether the marketing objectives were met, sales will be evaluated. Sales ‐ In addition to evaluating how much sales have gone up from last year, single­source tracking studies will be conducted. This allows the company to see how beneficial the campaign and the money spent on the budget were through sales. Page 18 Budget Allocation (For further budget breakdown refer to the Appendix.) Communication Tools Advertisement Television: Production Food Network Slice CTV Total Television Schedule Radio: Production (English and French) QMFM (13 Similar Stations) Total Radio Outdoor: Production Transit Total Outdoor 1 17 Weeks 15 Weeks 17 Weeks $250,000 $700,000 $600,000 $700,000 $2,250,000 1 1/D 5D/29W $1,400 $522,000 $523,400 1 29 Weeks $1,400 $193,213 $194,613 1 7 Months 12 Months $1,400 $343,000 $0 $344,400 17 Weeks 18 Weeks $25,000 $770,000 $100,000 $895,000 Print: Production Chatelaine What's Cooking Total Print Sales Promotion Production Point of Purchase (30% redeem rate) Sweep Stakes Total Sale Promotion Direct Marketing What's Cooking Subscriptions Total Direct Marketing E­Marketing Production Kraftfood.com Mommy Blogs Social Media Total E‐Marketing 1 Month $0 $0 1 12 Months 12 Weeks 12 Months Public Relations Cost $20,000 $0 $2,132 $0 $22,132 Corporate Social Responsibility Total Public Relations 1 Month $500,000 $500,000 Testing & Miscellaneous Costs Grand Total Allocated Budget $100,000 $4,807,413 $5,000,000 Under ‐$192,587 Page 19 Conclusion Kraft Singles are undoubtedly one of Canada’s most timeless snacks, shown by their market share through their 45 years of activity in the industry. The “Some Things Never Change” anniversary campaign will match perfectly the marketing and communications objectives to reiterate the timelessness of the product to the target audience and thus instigate repurchase. The course of their lifetime in the industry has allowed Kraft Singles to develop many stakeholders who will benefit greatly from the celebration of this anniversary. With a budget of five million dollars, certain amounts of money will be allocated to each communication tool. Through the lead tool of advertisements, the message will have an emotional appeal on the audience and effectively reach them based on research of their viewing habits. The promotion will attract favorable brand switchers and therefore satisfy a large range of consumers to the brand based on the “back to school” season in which the promotion will begin. The sweepstakes promotion also enables Kraft Singles to develop a larger database of information to use in the direct mail field of their company. Through public relations, brand image will increase for the better and indirectly relate to Kraft Singles past positioning strategy by working with Osteoporosis Canada, a condition related to calcium, which Kraft Singles heavily featured for the past 45 years. The “Some Things Never Change” campaign will in fact make a large‐scale change to Kraft Foods and certainly Kraft Singles as a product. 45 years later, Kraft Singles is still a household name for cheese slices despite opposition and increasing competition in the field. Through a campaign that celebrates a long term achievement by giving back, increases participation of consumers, and generates sales and liking, Kraft Singles will prove to be the timeless snack it has always been for years to come…because some things never change. Page 20