- FRITO LAY CANADA 2009 MARS APPRENTICE CHALLENGE BACKGROUND INFO
The Miss Vickie’s story begins in 1986, on a small farm just outside of Allison, Ontario. A caring, country mom,
Vickie was looking for ‘simple’ snack alternatives to feed her children. She produced a batch of ‘kettle’ potato
chips on her stove and her family loved them. The rest, as they say, is history. She quickly began producing
them for friends, extended family & local community. With their encouragement and support, she then expanded
her business to include retail. Less than 10 years after making her first batch in her country kitchen, Canada’s
largest snack food company (Frito-Lay) bought the Miss Vickie’s brand.
Despite being owned by Frito Lay, Miss Vickie’s continues to maintain a completely separate and unique
identity. As a brand, we strive to remain true to the original Miss Vickie’s promise. From a product perspective,
Miss Vickie’s potato chips are kettle cooked with old-fashioned care. They are made with hand-selected
potatoes and sliced with precision for the perfect crunch. From a marketing perspective, we go to great lengths
to separate Miss Vickie’s from the balance of the Frito Lay portfolio. She retains her own consumer relations
hotline, and Frito Lay is not mentioned on the packaging or brand website (www.missvickies.ca).
In Canada, Miss Vickie’s has grown to become the third largest Potato Chip brand (after Lay’s and Ruffles).
FACTS ABOUT MISS VICKIE’S
Business Metrics
• Kettle Potato Chips represent 9.8% of the total Potato Chip category, and are growing at roughly +15%
year over year. FYI, the other Potato Chips segments are ‘flat’, and ‘ridged/rippled’
• Miss Vickie’s has a dominant market share of the Kettle Potato Chip segment (~60%)
• Despite dominant share, Miss Vickie’s is only consumed in 22% of Canadian Households, while Kettle
Potato Chips are consumed in 37% of households!
• Miss Vickie’s is a ‘premium’ potato chip, hence we do not typically price discount her
• The vast majority of Miss Vickie’s growth in the past 5 years has been driven by flavour expansion
(introducing new flavours of chips), which has resulted in increased shelf-space for the brand.
• However, recent innovation has struggled. Miss Vickie’s Unsalted, Miss Vickie’s Roasted Red Pepper
Grill, and Miss Vickie’s Vintage Cheddar & Red Onion have all failed to attract strong repeat purchase.
• Innovation has been limited to flavour extensions
• Core flavour sales performance remains strong (Original, Sea Salt & Malt, Sweet Chili & Sour Cream)
• Miss Vickie’s are significantly overdeveloped as a ‘lunch time’ accompaniment vs. other snack foods
• Excellent distribution a part of Frito Lay’s direct-to-store delivery system
Consumer Metrics and Regard
• Top of Mind awareness is low for Miss Vickie’s – in other words, when asked to name a Salty Snack,
only 9% of Canadians mention Miss Vickie’s
• However, conversion from awareness to trial is EXTREMELY strong for Miss Vickie’s, at 77%!
• While Miss Vickie’s does not stand out in the minds of consumers, there are a few interesting things to
point out:
o Consumers believe that her chips are ‘high quality’
o Consumers believe that her chips are ‘natural’
o Consumers believe that ‘there are no substitutes’ for her chips
o Consumers believe that her chips are ‘worth paying more for’, but don’t think that they are ‘good
value’ – an interesting dilemma!
• Growing % of total sales bought on deal, despite the fact that we do not typically price discount!
• Blind taste test results indicate that Control Label product is of similar quality to Miss Vickie’s
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Key Competitive Highlights
• Miss Vickie’s competes in the Potato Chip category
• Other competitors are beginning to fight aggressively in order to grow their share of the Kettle segment,
including: Old Dutch, Kettle Cooked, and Control Label.
• The US has launched a Lay’s Kettle product to appeal to price sensitive Kettle Potato Chip consumers.
This is not currently an option for Canada to pursue.
CURRENT STRATEGY
Current brand vision
To be the premium authentic snack food
Current Strategic objective:
Drive household penetration amongst Baby Boomer households.
The vast majority of Miss Vickie’s growth over the past 5 years has been driven by innovation and space
expansion gains for the brand.
From a marketing perspective, we are constantly challenged to grow Miss Vickie’s in a way that is consistent
with the brand’s heritage. Our President challenges the brand team to consider the following question when
evaluating any potential Miss Vickie’s marketing programs: “What would Miss Vickie do?” As a result, we often
reject the types of programs that have proven successful for the balance of our portfolio. While Lay’s, Doritos,
and Tostitos rely heavily on traditional mass media vehicles (Television, Radio, Print, etc…) to drive brand
equity and awareness, Miss Vickie’s has not followed a similar path. Furthermore, Lay’s, Doritos, and Tostitos
partner with massive properties (NHL, Feature Films, SuperBowl, etc…) to drive in-store displays and consumer
pull. Miss Vickie’s does not have a national partnership deal. Two times a year, she uses in-store coupons to
drive temporary display and trial.
Current Product Guardrails:
• No Trans Fat
• No MSG
• No artificial flavours or colours
• Kosher
WHO ARE WE GOING TO TALK TO?
DEMOGRAPHIC: Boomers 40-59,HH Income $75K+
PSYCHOGRAPHIC: “Premium Snackers” who are trading up & seeking heightened, new experiences in foods.
These are consumers who no longer have children in the home. While they once felt ‘bound’ by their familial
responsibilities, they now feel ‘liberated’. They are looking for food companies that can help them to ‘maintain
their quality of life as they age through providing ‘mindful choices’.
CURRENT ON-TARGET CONSUMER TRENDS
1) Proactive – Boomers seek to mindfully control their lives through positive nutrition & behaviours
2) Discernment – Boomers seek to mindfully enjoy the finer things in life and experiences that are worth
slowing down for
3) Real – Boomers seek to mindfully shed the complexities of modern life and look for authentic, simple
and natural experiences
CHALLENGE
With growth on the brand beginning to level off, competition within the Kettle Potato Chip category intensifying,
and an innovation strategy that is no sufficient to drive growth, Miss Vickie’s marketing strategy needs to be
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refreshed. Your challenge is to develop a new, strategic 360 marketing program that will revitalize the brand –
while never forgetting the critical ‘What would Miss Vickie do?’ lense.
Please consider how to build ‘sustainability’ into the Miss Vickie’s marketing program. 1) The environment is a
major concern for Boomers. 2) No other brand within the Frito-Lay portfolio is aligned with an environmental
cause. 3) It is very consistent with Miss Vickie’s brand vision.
WHAT DOES SUCCESS LOOK LIKE?
• Strong year over year sales growth, exceed sales targets and outpace Kettle category growth
• Drive strong brand equity scores and fanatic brand loyalty amongst the core boomer demographic
• Double household penetration from 22% to 44% of Canadian households
MANDATORIES
How would you address the following three items to make Miss Vickie’s an Iconic brand amongst the Boomer
demographic?
The plan must consider the following aspects
1) Communication Platform: How should Miss Vickie’s communicate with her consumers? Develop and
support a communication platform ie. Should she use the internet? Should use social media? Should
she develop a ‘Country Fair’ tour?
2) Innovation: How can Miss Vickie’s innovate beyond flavour expansion?
3) Program Support: Where should Miss Vickie’s be spending her money? See considerations below.
Considerations:
a. Packaging
b. Consumer promotions
c. In-Store activation
d. Partnerships
e. Grass roots initiatives
f. Media Mix (Radio, Print, Out of Home, etc…)
g. Public Relations
BUDGET
$1.5 Million
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