Carnation Instant Breakfast
2007 Marketing Plan
Alex Andujar
Table of Contents
Executive Summary
Company Background
Product Overview
Competitive Analysis
SWOT Analysis
Market Research
Marketing Strategy
Creative Plan
Television Storyboards
Print Ad
Subway Ad
College Newspaper Ad
Website Layout
Promotions
Media Plan
Marketing Communications Flowchart
Total Budget Recap
Evaluation
1
2
3
4
6
7
13
13
15
17
18
19
20
21
22
23
24
25
Executive Summary
Creative Objectives Include:
In a push to re-brand itself as a nutrition company, Nestle
is pumping marketing dollars into its top nutrition division
products, one of which is Carnation Instant Breakfast. The
brand team at CIB has proposed changing its current
marketing strategy from targeting Women 35-54 to Adults
18-34. However, in order to test this new strategy, it has
been proposed to use Boston, MA as a test market before
rolling it out nationally. The budget is set at $3 million.
-
Through primary and secondary research was conducted
and determined that:
The media plan for the campaign includes TV spots,
Magazine ads, Subway ads on MBTA trains and stations,
and College Newspaper ads with coupons. Promotional
activity includes campus sampling, downtown sampling,
and contracts with local smoothie shops.
- CIB has a brand awareness in Boston of 55% amongst
A18-34, but only 40% of whom have actually tried it.
- CIB brand is a gender neutral
- Majority of the target skips breakfast
- People have the perception that CIB is “old”
- Large amount of people feel that they their lives are busy
and hectic
The analysis showed that an advertising campaign would
have to highlight the taste and function of CIB as oppose
to the specific nutritional elements. The ads would be
gender neutral and would need to reach the target when
they are in the breakfast “frame of mind”. The target
market consists of college students and young
professionals. Therefore, TV ads included people from this
age range. Also, advertising will reach them on college
campuses and during their morning commute into the city.
Lastly, the website will be refreshed to include younger
people and relevant content.
Increase brand awareness of CIB amongst A18-34
in the Boston market.
Show/demonstrate practical use of CIB
Convey benefits of CIB (nutritional + saving time)
Create “appetitive appeal” by featuring the already
mixed liquid being poured into and swallowed from
a clear glass
Encourage trial of CIB
The marketing campaign will span throughout all of 2007
and will pulse from month to month so that CIB will be
visible but not become stale and repetitive.
The total campaign will come under budget at $2.8
million.
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Company Background
Nestle Nutrition
With roots in Vevey, Switzerland, Nestle is
the #1 food company in the world in
terms sales. In 2005, Nestle USA
generated $8.1 billion in sales. Nestle USA has also been
ranked #2 in Most Admired U.S. Consumer Food Products
Company. On average, Nestle USA spends $550 million on
U.S. advertising.
As of March of 2005, Nestle USA has made nutrition a top
priority. Nestle launched a standalone nutrition business in
the U.S. Nestle Nutrition that will focus on aggressively
growing PowerBar, Carnation Instant Breakfast and Good
Start infant-formula brands.
Nestle’s portfolio of properties include categories such as
confectionary, beverage, coffee, nutrition, infant formula, pet
food, ice cream, water, and frozen meals.
''The nutrition game is one Nestle wants to play in, even if they're in the
first inning,'' said Prudential Securities analyst John McMillin. The creation
of the new business, he said, ''reflects that (Mr.) Brabeck has made
health and nutrition a global priority because he feels that one of Nestle's
competitive strengths is research and development, and he's looking for
brands like PowerBar to expand even further in the years ahead.''
Hopefully, Mr. McMillin said, ''there is the innovation in the pipeline to
make it work.''
Excerpt from Advertising Age 3/21/05:
To further its nutrition push, Nestle recently acquired Jenny
Craig for $600 million. Also, in response to consumer
demand, Nestle is in the process of removing transfatty acids
from its foods. Nestlé USA products with "0" transfats include
Nestlé Coffee-Mate and Stouffer's Lean Cuisine.
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In 2003, Nestle itroduced a low-carb formula of
Carnation Instant Breakfast, which increased total sales
by 2%. Nestle was poised to take advantage of the lowcarb trend and keep the Carnation Instant Breakfast
brand relevant despite high awareness among baby
boomers.
Product Overview
Originally launched in 1965, Carnation
Instant Breakfast created a brand new
product category of consumer products
in the marketplace, establishing
The trend toward grand-and-go breakfast products.
Carnation Instant Breakfast provides approximately 220-250
calories and 21 essential vitamins and minerals. It has 25%
of the daily value of B vitamins (Thiamin, Riboflavin, Niacin,
B6, B12), 25% daily value of protein, and 50% daily value of
calcium.
Regular
Formula
Carnation Instant Breakfast is priced between $4.00 and
$6.00 a unit. It comes in a powder-mix form as well as
ready-to-drink form. The flavor offerings include Chocolate,
Vanilla, Strawberry, and just recently launched, Dark
Chocolate.
Low-carb
Formula
For the past several years, Carnation Instant Breakfast
has concentrated its marketing toward the Women 35-54
with a household income of $55,000+ and with children
in the household. Ads focussed the energy boost
element of CIB and spoke to women with busy and
hectic lifestyles and needed that “morning fuel” to start
the day. The tag-lin on 2005 creative was “Serious
Morning Fuel.”
Carnation Instant Breakfast is distributed in supermarkets,
wholesale clubs, and convenience stores throughout the
United States.
Marketing Carnation Instant Breakfast
2005 National Advertising - $8MM
In an effort to dust off the Carnation Instant Breakfast brand
for a more contemporary consumer, Nestle, in 2000,
repositioned the line with a $10 million national TV campaign,
a reformulation of the powdered varieties and a distribution
drive that offers retailers account-specific marketing
programs in exchange for taking on new units.
- TV (Early Morning, Syndication,
Cable)
- Print (Women Service
publications)
- Radio (Network + Endorsement
Radio)
- Online (WebMD, iVillage, Tickle)
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Competitive Market Share
Cereal/Breakfast
Bars
19%
Meal-Replacement
Shakes
16%
Carnation Instant
Breakfast
1%
Drinkable
Yogurt/Smoothies
64%
$7.5 Billion Market
Percentages are of Category Market Share
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Competitive Media Spending
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SWOT Analysis
Strengths
Weaknesses
1. Nestle’s strong brand equity
2. CIB is established brand
3. Product is convenient and
quick
4. Nestle’s mission to support
nutrition brands
5. Low-carb offerings
1. Weak distribution
2. Poor shelf positioning
3. Poor sales relative to past
performance
4. Nestle’s image of candy and
sugar
5. Inconsistent Brand
positioning
Opportunities
Threats
1. Boston has large pop. of
college Students and young
professionals
2. Competitive mealreplacement shakes (Ensure,
Boost) are perceived for
elderly
3. Potential contracts with
smoothie shops
1. Abundance of breakfast
replacement options
2. Quaker and Kellogg’s own
the breakfast image
3. Quaker uses its sales as
negotiation leverage with
supermarkets for shelf
positioning
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Methodology:
Market Research
Questionnaires were administered to 300 people (N = 300) in
the Boston metro area during October 2, 2006 and October
15, 2006.
Secondary Research
•
96% of Americans believe consuming a nutritious breakfast is an
important part of a healthy lifestyle
•
25% say they eat breakfast only three out of five weekdays
•
38% say they tend to eat breakfast on-the-fly -- at work or
school, while commuting or running errands, and almost the same
percentage
•
47% say that when they skip breakfast, it's because they do not
have enough time or feel that it is too inconvenient
•
Consumers are interested in portable, convenient, healthy meal
alternatives and snacks
The survey consisted of the following variables: age, gender,
income, education, employment status, breakfast
consumption habits, breakfast brand preferences, brand
awareness, attitude to brand, and purchase intents.
Breakfast consumption habits were measured by questions
that asked how often respondents ate breakfast in the
morning and what types of breakfast items they consume.
Brand awareness was measured with questions that asked if
they have ever heard of CIB and how they heard about it.
Attitudes to brand was measured using a multiple choice
question as well as attitude scales. The question simply
asked those who have heard about CIB to rate if they like it
or dislike it.
Source: KRC Research on behalf of America's Breakfast Council (ABC)
Primary Research
Carnation Instant Breakfast in interested in redirecting its
marketing commutations from W35-54 to A18-34. The
purpose of primary research is gauge CIB’s current brand
equity amongst this demographic as well as identify the
attitudes and values of the segment in order to construct a
comprehensive advertising campaign.
The attitude scales contained adjectives that best describe
their feelings toward CIB, such as Nutrition vs. Unhealthy,
All-natural vs. Artificial, Young vs. Old, etc. Personal
perception characteristics measured how respondents viewed
breakfast and how they view their lifestyle. Respondents
were given statements and were asked to select from a scale
of agree to disagree.
Research Goals:
- Identify products currently used (if used) as breakfast
replacements
- Discover attitudes toward breakfast
- Measure CIB brand awareness
- Measure current perception of CIB Brand Image
- Measure lifestyle characteristics
Purchase intent was measured with four scales that
respondents had to agree or disagree with. Statements
included likeliness to purchase, likeliness to recommend to
friends, if CIB is a good breakfast option, and if CIB would
make their lives easier.
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Survey Pg 1
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Survey Pg 2
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Survey Pg 3
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Breakfast Items Consumed Regularly
Results
Cereal
With the use descriptive statistics and crosstabs, results
show that 55% of respondents were female and 45% were
male. The mean age was 26 years old.
Eggs
Yogurt
Pancakes/Waffles
The largest share of respondents (34%) selected that they
have breakfast less than 1x a week.
Muffins
Bagels
Oatmeal
How often do you eat Breakfast?
Other
Breakfast Bars
Everyday
8%
Breakfast Shakes
0
>1/week
34%
5-6/week
9%
3-4/week
21%
1-2/week
28%
When asked what breakfast items they regularly consume,
Cereal had the most responses. Breakfast shakes were the
lowest with only 60 responses. Of those who selected
breakfast shakes, 65% were female and 35% were male.
50
100
150
200
250
300
In terms of brand usage, Quaker Oats Breakfast Bars had the
most responses. Second, came Kellogg’s Cereal Bars. Only 18%
Respondents chose Carnation Instant Breakfast.
With regards to Brand awareness, 55% of respondents have
heard of Carnation Instant Breakfast.
When asked how they know about CIB, the majority respondents
stated that their mother introduced the product to them.
40% of those respondents that have heard of CIB said they have
tried the product
When asked how they feel about CIB, the top 2 box response was
70%.
Therefore, 70% of those who have heard about CIB like it.
However, only 40% have actually tried it.
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A pilot-test of the survey was conducted with 70 people.
Using confirmatory factor analyses, the following scale
reliabilities were determined.
Attitude Toward Brand
Cronbach’s Alpha
Attitude to Breakfast
Attitude to Brand
Purchase Intent
.75
.79
.80
Results showed significant zero-order correlations with the
Purchase Intent dependent variable.
Age
= Mean Score
Had a significant positive relationship with Attitude to Brand
(p= .004)
When asked to scale adjectives to describe Carnation Instant
breakfast, respondents’ mean scores showed a skew toward
“Convenient”, “Flavorful”, “Useful, “Satisfying”, and
“Nutritious.” “Dull”, “Old”, and “Artificial” had a low mean
score skew on the scale. Therefore, challenges for the brand
is to combat the perception of being dull, old, and artificial.
Income
When asked to agree or disagree to statements about their
personal perception about their lives and breakfast,
respondents responded as follows:
Had a significant positive relationship with Purchase Intent
(p= .003)
Prefer to have breakfast everyday.
Top 2: 70%
Believe that breakfast is an important meal to have.
Top 2: 62%
Don’t have enough to time in the morning to have breakfast.
Top 2: 51%
Had a significant positive relationship with Attitude to brand
(p= .001)
Attitude to Brand
Gender
Did NOT have a significant relationship with Attitude to Brand nor
Purchase Intent
(p=.07)
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Marketing Strategy
Creative Plan
The task at hand is to make the Carnation Instant Breakfast
brand relevant to the A18-34 demographic. Marketing
communications must speak directly to this market and
demonstrate the practical uses of the product.
Objectives:
1.
2.
3.
4.
Boston will be used as a test market before a national
campaign is later rolled out. The 18-34 market accounts for
23% of the Boston DMA. It includes college students and
young professionals. Creative executions will either feature
persons of this age group or will appeal to their sensibilities
visually and communicatively.
5.
Increase brand awareness of CIB amongst A18-34 in
the Boston market.
Show/demonstrate practical use of CIB
Convey benefits of CIB (nutritional + saving time)
Create “appetitive appeal” by featuring the already
mixed liquid being poured into and swallowed from a
clear glass
Encourage trial of CIB
“Breakfast Done Fast” Campaign
The over-arching themes behind the “Breakfast Done Fast”
campaign is practical, fast, and delicious. All creative will
show CIB as an appetizing and functional tool in starting the
day. All communications will contain the tag line: “Breakfast
Done Fast!”, which solidifies the speed element of the
product. As there are several other “on-the-go” breakfast
replacement products in the marketplace, some arguably
faster than CIB, it is important to hit home that CIB is both
fast and tasty. Although the product contains numerous
vitamins and minerals as well as other health benefits, ads
will stress foremost the speed and tastiness of the product.
The nutritional benefits will be placed in body copy, but will
not overshadow the central theme. Trial use is important
for this campaign; therefore bogging down the consumer
with statistics and nutritional information may be
counterproductive. The primary goal is to create an appetite
appeal for the product, convey its function in the busy
everyday life of an 18-34 year old, and then to explain the
health aspects of the product.
A common thread in the marketing communications will be
simplicity and speed. This theme will be seen in all creative
concepts and promotional activity.
Advertising and Promotions will be strategically placed in
media and locations that the A18-34 segment frequents. A $3
million dollar budget has been set for the Boston test.
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see later the packaging at the store. Lastly, the ad will have
vivid colors will be saturated to make the glass appear
supernatural and will draw the eye to ad. The background
color will be blue to convey the peace and relaxation one
feels when consuming CIB. Since the target market generally
feels their lives are busy and hectic, the ad will be a
welcomed break from their day of frustration. The ad will
have the same “Breakfast Done Fast” tag-line as the TV
commercial. The body copy will include the nutritional
elements of CIB and will end with “Just the thing to save you
time and energize you throughout your busy day.”
Television Commercials - “Morning Race”
Two :30 TV commercials will be produced, both using the
same them and story structure. One will feature a young
male professional, the other a young female college student.
In both ads, a main character will be sleeping quietly and
peacefully as soft relaxing music plays in the background.
Suddenly the alarm clock sounds, loud and irritating. The
main character wakes up spastically and reacts in a comical
manner. The male will throw the clock against the wall and
the female will fall out of bed. The rest of the commercial is
filled with fast cuts of the main character getting ready.
After they are dressed they prepare some Carnation Instant
Breakfast. Suddenly, the music winds down to a more calm
drone as the character slowly drinks the CIB, enjoying every
second of it. Once they finish, the music jumps back to fast
and they bold out the door. The tagline is then shown and a
voice-over says “Carnation Instant Breakfast. It’s breakfast
done fast.”
Subway Ad – “Calmly Pouring”
The subway metro ad will have the same creative concept. It
will vary only in size and position of the glass. Otherwise, the
same elements from the print ad will be used.
College Newspaper Ad – “Coupon Offer”
The campus newspaper ad will be half-page color (depending
on the publication) and will have the same body copy and
tag-line will be consistent with the print and subway ad. The
purpose of the coupon is to encourage trial by students and
get the product into their dorms or apartments. Although
CIB is not a recent launch, the goal is similar to that of the
diffusion of innovation, in which it is advantageous to create
a snowball effect. In addition, as more students try the
product, it will generate word-of-mouth amongst their social
circles.
Print Ad – “Calmly Pouring”
As stated before, the approach of this ad campaign will
require a low level of involvement from the consumer.
Therefore, according to the Elaboration Likelihood Model, a
heuristic or syncretic approach is necessary as oppose to a
systemic or analytical approach. The full-page print ad will
show a clear glass with chocolate flavored CIB being poured
into it. It will create appetite appeal and will show the
product to be calm and smooth. Seeing the ad will both
relax the viewer as well as generate a craving. Looking at
the ad will almost be hedonistic. The Carnation Instant
Breakfast brand will be tiled and morphed into the
background. Similar to Pavlov’s Dog experiment, viewers
of the ad will become conditioned to crave CIB when they
Carnation Instant Breakfast Website Refresh
The homepage for CIB will be refreshed with images of
persons 18-34. Also, the content will reflect the interests and
hobbies of the younger demographic. For example, studying
for graduate school and how nutrition plays a role.
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: 30 TV Commercial 1 – “Morning Race: Male”
1
[A young man is quietly asleep]
Music: Calm, relaxing melody
4
[Cuts to his watch, then to him fastening a
tie, then adjusting his cuffs]
3
2
[His alarm sounds]
Music: Shifts to frantic chaotic music
[He slams the alarm clock against the wall]
5
[Cuts to him in the shower while brushing
his, then cuts to him frantically putting
clothes on]
6
Music: Winds down to a slow drone
[The man pours a glass of CIB and drinks
it slowly with his eyes closed]
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Music: Speeds back up to chaotic
[The man races out the door]
VO: “Carnation Instant Breakfast. It’s
breakfast done fast.”
: 30 TV Commercial 2 – “Morning Race: Female”
1
[A young woman is quietly asleep]
Music: Calm, relaxing melody
4
[Cuts to her frantically getting dressed]
2
3
[Her alarm rings and she falls hard onto
the ground]
Music: Shifts to frantic chaotic music
[Cuts to her in the shower, then cuts to
her doing her nails]
6
5
Music: Winds down to a slow drone
[The woman pours a glass of CIB and
drinks it slowly with her eyes closed]
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Music: Speeds back up to chaotic
[The young woman races out the door]
VO: “Carnation Instant Breakfast. It’s
breakfast done fast.”
Print Advertising
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Subway Advertising
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College Newspaper Advertising
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Website Refresh
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Promotions
Street Team Sampling
Campus Samplings
Targeting young professionals, street teams will be hired
to give out samples in the morning to people exiting public
transit stops/stations within the downtown area. The goal
is to get CIB in the hands of those heading to office and to
those in need for a breakfast. This accomplishes two
things.
Sampling teams will be hired to distribute sample packs of
Carnation Instant Breakfast on college campuses
throughout the Boston area. This is will be done once in
2007 during early October. This date was chosen for two
reasons.
1)
2)
It occurs in conjunction with the college newspaper
ad, further pushing students to try the product and
gain high visibility on campuses.
This is a period after move-in time, in which other
solicitors, such as credit card, soda, music, and
condom companies saturate the campuses. During
October, it will be less busy and will allow the
sampling teams to work within less noise and clutter.
1) Encourages trial of CIB by young professionals.
2) Gets CIB packaging into the office place, which will
generate word-of-mouth amongst coworkers.
Contracts with Smoothie Shops
Contracts will be secured with local smoothie shops in order to
have Carnation Instant Breakfast promoted as an option. CIB
is often times used to create nutritional breakfast smoothies by
consumers. By securing this promotion, CIB can gain more
visibility in the Boston Market and can benefit from an increase
of SKU purchases.
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Media Plan
Objectives:
Deliver integrated local advertising campaign to the target
Adults 18-34 target audience at appropriate times and
locations.
Maximize reach and frequency with available media budget
as efficiently and effectively as possible across the selected
media.
Magazines
Allows for targeting. Magazines that index high amongst A1834 will be used. In addition, local magazines and magazines
with regional capabilities will be selected.
Subway/Metro Ads
Ads placed within MBTA subway cars and stations will reach
morning commuters and young professionals. In addition, it is
A captive audience as people waiting inside or outside of trains
have limited options in terms of things to look out. This will
allow riders time to look and examine the creative of the ad.
Local Spot Television
Television enables a prestige factor to the brand. In addition,
competition has historically spent significant dollars in
television (2006: $57 million to-date). Consistent use of local
TV will establish a base of local exposure and reach a
balance of men and women.
Early Morning: Consumers are in the morning mindset and
are more responsive to breakfast messaging. Furthermore,
the creative concept will be most relevant to them during this
time period.
Primetime: High ratings period amongst target audience.
Reinforces prestige status for brand.
Adult Cable: Allows for strategic targeting with the multitude
of cable channel offerings. In addition, relatively
inexpensive.
Flighting Strategy
A pulsing strategy will be implemented. Advertising will be on
for a duration of time and will be interrupted with a hiatus in
order to prevent becoming stale and obnoxious. Total
advertising will be spread throughout the fiscal year. TV and
magazine spending will be frequent. Campus newspaper
advertising will occur once during Spring semester and once
during Fall semester. Outdoor will occur during two months
(one in the spring and one in the fall) in conjunction with TV
advertising.
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Total Budget Recap
Online
0%
Promotions
0%
Advertising
Production Costs
11%
OOH
4%
Newspaper
0%
Magazine
21%
Television
64%
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Evaluation/Post-test
Surveys
Surveys will be administered in the same fashion as the
pre-test. It will measure: Brand Awareness, Attitude to
Brand, and Purchase Intent, using the same questions and
scales. From the results, we will be able to measure the
change in the variables from the marketing campaign. If
the results show a sufficient change, then a nation-wide
roll-out of the marketing campaign will commence.
Coupon redemption
Each coupon will be electronically traced using the barcode
on it. When a retailer scans it, the data will be sent to
Nestle, in which we will tabulate how many coupons were
redeemed and in what parts of the city.
Website traffic
Monitoring traffic of www.carnationinstantbreakfast.com
will show if there is a dramatic increase in hits. In
addition, we will monitor what links are being clicked on
and whether or not the new refreshed content keeps A1834 on the site longer.
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