grape---nuts

Marketing Campaign
Lauren Rahman Nicole Mullet Brandon Mead

Life - Better with grape---nuts.

ii

| Tablit di Cintensts

Table of Contents
Industry Background Grape-Nuts Background Consumer Analysis Our Proposal Marketing Campaign

Ready-to-Eat Cereal Industry

Ready-to-eat cereal, as a breakfast option, has maintained a long-standing, dependable history. Grape Nuts cereal maintains market share in this industry. In order to gain better understanding of the industry Grape Nuts belongs to, we examined the most important characteristics of the industry and further explored the aspects that most directly influence Grape Nuts market share and future marketing endeavors. Characteristics we will focus on include: Classic example of concentration of differentiated products (monopolistic competition) Few top competitors Wide array of brands Aggressive introduction of new products High price-to-cost margin Large advertising-to-sales ratio History The first cold, ready-to-eat cereal was produced by James Caleb Jackson in 1863. The first mass produced RTE cereal was introduced by Dr. John Harvey Kellogg in 1906 when he founded his Kellogg Company, now known simply as Kelloggs. The market continued expansion as RTE cereal gained popularity and more companies came onto the scene. Charles William Post established Post Cereal Company. Quaker Oats joined the RTE cereal market after beginning with warm oatmeal. Later on, General Mills, originally a flour milling company, and the National Biscuit Company, now Nabisco, entered the market. New cereal introduction grew. Rice Krispies were introduced in 1929 by Kellogg, and Cheerios arrived on store shelves in 1941. The first registered cereal trademark was the Quaker Oats man in 1877. Cereal advertising has often followed suit, using mascots and characters in their advertising to consumers. Keeping pace, the RTE cereal industry has consistently produced profits according to economic conditions and advertising expenditures, being affected by economic difficulties as a normal good and a necessity. The industry has shown steady and continued growth, with a huge shift occurring in 1997 when the industry became extremely concentrated. Source: (Aviv Nevo 2-7) Monopolistic Competition The RTE Cereal industry is a classic example of a highly concentrated market of differentiated products. The top three companies (Kellogg, General Mills, and Post) control much of the industry, and there are six top manufacturers that are most involved in the market. The biggest characteristic of the industry is the huge array of differentiated brands from the top manufacturers. In addition, the number of products being introduced is high and has been steadily increasing.

Enicaper ficaed susta nondin is es nonim et dolore

The numbers: 200 RTE cereal brands, not including negligible brands 3 leading manufacturers 6 top manufacturers 5% top cereal market share (Kelloggs Corn Flakes and General Mills Cheerios) Less than 0.1% market share for the 100th brand Source: (Aviv Nevo 1-5)

to-sales ratio is about 13 percenthigh compared to 2 to 4 percent in other food industries. This means that cereal manufacturers spend a high amount in advertising in order to increase sales, but receive less than 10 times the cost of advertising in sales. This means that aggressive and costeffective advertising must be pursued.

Grape-Nuts Background
Creation
In 1898, Charles W. Post introduced GrapeNuts cereal, believed to be named after the grape sugar that formed during the baking process, and nuts because of its nutty flavor.

Price-to-Cost Margin
RTE cereal has a high price-to-cost margin. There is a large difference between price of the good and the competitive selling price. Research has shown that this is due to high competition and low elasticity. The actual gross margin of price over cost of production is large compared with other food industries. It equals 64.4 percent, whereas other industries have a gross margin of 26.5 percent. Pricing in this industry is non-collusive, but rather is determined by competitive advantage through advertising. Firms seek to create perceived value through advertising pushes, especially for new products, which are aggressively introduced.

Brand Market Share and Advertising

Grape Nuts has experienced many upand-down changes in market share using many campaigns to try to reach equilibrium growth. The following is a timeline of Grape-Nuts market share and advertising campaigns: Under 2% - 1897 The brand grew steadily through coupon promotion and typical brand introduction and advertising strategy. Grape-Nuts is primarily touted as a health foodgood for digestion and red blood cells.

Advertising-to-Sales Ratio
In the RTE cereal industry, the advertising-

LOREM IPSUM

Under 2% - 1900 Customers are rewarded cash for writing letter testimonials of the health benefits they receive from Grape-Nuts. 2.2% - 1960s Advertising promoted Grape-Nuts as the cereal that fills you up not out. The franchise grew consistently as brand users were portrayed in active pursuits such as horseback riding and tennis. 2.7% - 1966-1970 For four years Post aired extremely popular 30-second commercials during prime time programming of popular television shows. One commercial featured the Burke family, a mother and daughter who are confused for one another because Mrs. Burke eats Grape-Nuts to stay slim and healthy like her daughter. Other spots featured a tennis-playing mother-daughter duo from the Foley family. Spin-of parodies were featured in MAD Magazine and Playboy. The campaign featuring real people became part of American pop culture. 3.2% -- 1970s Euell Gibbons, recognized expert on the outdoors and natural foods, became the Grape-Nuts spokesperson. The Grape-Nuts slogan was the back to nature cereal, and the brand was featured in natural settings touting its holistic vitamins and minerals. 2.9% -- 1976 Gibbons died and Grape-Nuts was left without a spokesperson. Instead Post aired commercials with candids of user trying Grape-Nuts for the first time.

3.3% -- 1979 Will Rogers Jr., politician, actor, writer and political commentator, became spokesperson for Grape-Nuts. During this time, it was known as the simple cereal. 3.2% -- Mid-1980s Market share declined rapidly as respect for nature diminished in effectiveness as a way to market cereal. A nameless wilderness man was used as the spokesperson, firmly placing the cereal on 2.4% -- 1986 TV commercials began airing featuring consumers describing their mornings with Grape-Nuts. Aimed at increasing the ability to relate to consumers, these spots slowed the decline of the cereal. Approx. 2.2% -- 1987 A new strategy called Little Nugget halted market decline for a year by touting Grape-Nuts texture and taste benefits, but the decline resumed. Approx. 2.3% -- 1990-93 A campaign called Try it for a Week challenged consumers to try Grape-Nuts for a week and record the health benefits. The slogan was Helps keep you going strong all morning long. This succeeded in growing the brand, but was only successful in doing so for three years. Under 2% -- 1994 A new campaign began which showed the purity of Grape-Nuts and portrayed users in relaxed settings. Popularity continued to decline until market share was under 2%.

Enicaper ficaed susta nondin is es nonim et dolore

Under 2% -- 2009 Post tried a brazen ad campaign aimed at men. Various men are featured doing rugged, strength-defying activities and the slogan is a play on words saying That takes Grape-Nut. Post also introduced vintage packaging to celebrate the 100th birthday of the cereal. Grape-Nuts market share continues to stay below 2%. Sources: (Pollard1) (Northwestern 10)

Brand Profile
Grape Nuts is a healthy cereal that is made of natural whole grain and barley. Its number one claim is to be a healthy cereal so it is included in the category of health food/ cereals. It contains a high volume of fiber with 7 grams per serving and 33 grams of whole grain per serving. This nutritional feature is the most prominent health advantage to eating Grape Nuts.

Brand Problems
In order of importance: Product Taste There is not much of a taste and customers complain that in needs more a flavor because it is too bland. Other competing cereals contain fruit or other ingredients to give the cereal better flavor, which is what Grape Nuts needs to satisfy customers with a tastier cereal. Less Healthy Than Other Brands Too many calories for the healthy cereal

category. Special K as a leading competitor of Grape Nuts has only has 120 calories per cup which is substantially less than Grape Nuts. Lacking in other vitamins and minerals compared to other health cereal brands. Product Variety Does not have a large variety of different types of cereal as competitors do. GrapeNuts only have granola, flakes, and trail mix crunch and has been around for over one hundred years; whereas Special K has varieties with many different fruits and nuts and has been around for half as long as Grape Nuts. Grape Nuts also only makes cerealno granola bars or healthy smoothies like Special K. A big reason for the decline of Grape Nuts is because of the low variety of flavors and types of products that it provides. Customers will eventually lose interest and their incentive to continue buying a certain brand if it never refreshes its product. Outdated Image Because of Grape-Nuts long history, the brand also carries with it an outdate image. When consumers feel that a product is too traditional or outdated, they do not feel it is relevant to their lives.

Branding Strategy
The branding strategy for Grape Nuts has always been to portray a healthy cereal that is made of whole grains, such as wheat and barley. The focus is to attract people who are concerned about their well-being, sugar intake, and food to fat

LOREM IPSUM

content. The health benefit is the main idea Post concentrates on communicating to consumers.

Marketing Mix Strategy

Consists almost entirely of: Billboards Promotional Coupons Internet Banner Ads Television Print Ads Grape-Nuts has begun to use some less traditional approaches of increases product awareness. An episode on Season 5 of the apprentice was dedicated to introducing Grape-Nuts Trail Mix Crunch cereal through designing a billboard advertisement. This 1 hour episode boosted the cereal to #2 of all post cereals and boosted sales by 114%.

Current Positioning Strategy

The most recent branding strategy has been to portray a tough and rugged cereal that transmits energy and strength to male users. The medium used has been internet ads on sites such as MSN. Current Brand Slogan: That takes GrapeNuts

Past & Current Target Market

Past: Grape-Nuts past target market was adults ranging from 35-44. This age group was researched to be the highest purchaser of the Grape Nuts cereal at 23%, as well as the highest purchaser of all ready-to-eat cold cereals at 21%. It was also found that households with an income of thirty-five thousand and over had a 53% chance of purchasing the Great Nut brand. Current: The last ad campaign in 2009 was targeted to 35-44 year old men. It was geared to evoke a humorous response. It was aimed at the desire of the male consumer to be perceived as strong, tough, and impressive.

Budget: Brand, Competitors, Industry

Brand In 1994, Grape-Nuts advertising came to a standstill. Until recently, Post did not invest very much of their marketing dollars into redeeming the brand that was the staple to their foundation almost 100 years ago. In 2009, the brand received an allocation of funds for the That takes Grape-Nuts campaign, but there are no specific figures available. There is still not a very large allocation of funds for brand advertising. Competitors One Grape-Nuts competitor, Kellogg, increased advertising dollars within the

Enicaper ficaed susta nondin is es nonim et dolore

entire organization by 4% (Annual Report 2010). Historically, cereal manufacturers like Kellogg have found it helpful to increase advertising spending in tough economic times. During the Great Depression, Kellogg increased advertising spending by double, taking over the number 1 position in the industry where they have been ever since. Industry A vast majority of marketing dollars for the RTE cereal industry is geared towards young kids, whereas Grape-Nuts is traditionally not a brand marketed to youth. The RTE cereal industry has historically spent a large amount on advertising. This is a necessity because of the high advertising to sales ratio and fierce competition.

BreakfastEatersbyAge
90% 80% 70% 1834 60% 3544 50% 4554 40% 5564 30% 65+ 20% 10% 0%

MostPopularBreakfastFoods
35% 30% 25% 20% 15% 10% 5% ColdCereal Bacon&Eggs HotCereal Eggs Toast

Outside Forces
Social/Cultural Influences Grape-Nuts is outdated in the mind of consumers, there are so many other alternatives of health cereals that are far more appealing and advertised. Consumers are searching for more. Grape-Nuts have the smallest box. It is overlooked in the aisle packed with competitors products.

0%

ColdCerealConsumersbyGender
40% 35% 30% 25% Men 20% Women 15% 10% 5% 0%

LOREM IPSUM

No fame backing the cereal. Grape-Nuts in the past persuaded big names to advertise and promote the all natural cereal. This has not happened in years, and is taking the cereal out of the spotlight. Economic Influences Rising input cost are pushing the price of Grape-Nut Cereal per box high enough that consumers are uninterested Grape-Nuts price point is too high to be competitive with the generic brands, which are thriving. At an average of $3.12 a box, Grape-Nuts is one of the more expensive cereals. It less expensive than Kashi brand, but GrapeNuts boxes are about half the size.

iar with is what they will buy. Morning Routine Humans are creatures of habit. They develop a taste for what they are used to, typically buying out of developed habit, especially in a low-cost category like RTE breakfast cereal. Cultural Factors Attitudes and beliefs in popular culture tend to shape buyer decision-making. The current trend in food has been towards healthy, all-natural foods that will help the consumer lose weight. The media has a large impact on consumers, which is a positive factor because our advertising campaign takes advantage of that fact. Price Key Desired Benefits Satisfaction: Consumers want something that will satisfy hunger and specific flavor cravings. Health: Consumers want something that will make them feel good feel healthy and well-nourished. Mental satisfaction: Consumers want to feel proud of their purchase decisions, avoiding buyers remorse. Financially wise: Consumers want to feel good about how much money was spent, getting more bang for their buck. Grape-Nuts can deliver this because they are not a premium priced product. Within the specific category of health cereals, our cereal is average in cost and we will increase the savings through the

Current Situation
In summary, Posts Grape nuts are becoming an afterthought. The once popular cereal is hovering around 1% market share, and making post a minor $80 million per year (Wall Street Journal). Post is currently lacking effort to creatively market the product. Grape-Nuts is a brand desperately searching for a way to revitalize its image in the eye of the consumer.

Industry Consumers
Category Decision Making
Comfortable Choice/Brand Loyalty Consumers buy what they are comfortable with. Brand loyalty is a large factor in RTE cereal buying. What the customer is famil-

Endox

increased value perception created with our proposed marketing plan.

Brand Perceptions
Users: Post Grape-Nuts are healthy for you. Its a good way to start off the day. Post has been around a long time so I can trust them. The cereal is not the most flavorful, but its healthy so Im willing to sacrifice. Im willing to pay the price because the health benefits and the trustworthiness of the brand is worth it to me. Nonusers: Post Grape-nuts do not taste good and I can find healthy cereals that taste better. The brand is outdated; and therefore, is not the best I can find. I can find better cereal for the same price or less.

Decision Making Features

Flavor: While consumers are more discerning towards healthiness, they are also more discerning towards flavor times have changed, modern progress means they expect more. They want healthier foods, but they are not willing to sacrifice flavor. Healthy: Cereal consumers are interested in having a healthy food to eat for breakfast, starting their whole day off right. Low Cost: Many consumers are interested in low-cost options including families on a budget, single people who want to save, and poor college students who cant spend much money on cereal, especially in the current economy.

Brand Users Profile

Profile of Brand Users by Demographics Adults ages 35-44 Employed High school education, at least Established households, often with children Suburban to rural areas Two biggest general user profiles: Educated, affluent and upper middle class families in established suburbs and new suburbs/ ex-urban towns respectively. Lower middle class to downscale, factory and farm workers in factory towns and

Competitors
In the minds of consumers, based on personal interviews, the top ten brand competitors to Post Grape-Nuts, in order of dominance are: 1. Kashi 2. Special K 3. Fiber One 4. Kelloggs Frosted Mini Wheats 5. Generic Grape-Nuts/granola 6. Raisin Bran Source: Personal Survey

LOREM IPSUM

mid-American agricultural communities respectively. As stated in: (Northwestern 10) All information in this section: (Northwestern University 10)

GNUsersbyAge
25.0%

20.0%

1824 2534 3544 4554 5564 65+

15.0%

10.0%

5.0%

Profile of Brand User by Psychographics

0.0%

GNUsersbyGender
60%

Health-conscious: Grape-Nut users are more interested in choosing health con- 50% scious brands, but they are not neces40% sarily health food fanatics. 30% Somewhat Trendy: While trendy, 20% Grape-Nut users still do not desire to be 10% involved in trends that are too new or uncomfortablenothing too extreme. 0% Independent/controlling: Grape-Nut users are motivated and want to con- 60% trol their own life. 50% Leaders: Users typically want control 40% of situations and to lead activities they 30% are involved in. 20% Intelligent: Generally intelligent indi- 10% viduals, Grape-Nut users put thought 0% into their decisions. Outdoors: Grape-Nut users are active and 45% enjoy the natural environments. 40% Traditional/Family: Grape-Nut users are 35% 30% interested in their family-centered life25% style and often fall in line with traditional 20% 15% values.
10% 5% 0%

Children AdultMales AdultFemales

GNUsersbyIncome

$35+ $2534.9 $1524.9 $15

GNUsersbyEducation
GraduatedCollege AttendedCollege GraduatedHighSchool Didn'tGraduateHigh School

10 | Endox

Nutritional Decision-Mak ing by Users and NonUsers

In general, users tend to base decisionmaking slightly more heavily on nutritional factors. All information in this section: (Northwestern University 10)

DecisionMakingFactorsbyUsersandNon Users
100 80 60 40 20 0

HighinProtein HighinVitamins LowinFat LowinCalories LowinSugar

Users NonUsers

Key Issue
We want to communicate to consumers that Grape-Nuts is a healthy, versatile product that is still relevant to their lives more relevant than the competitors.

Our Proposal
SWOT Analysis
Strengths Healthy Tradition Trustworthy Weaknesses Flavor Out-dated image Opportunities Product line expansion Partnership with other food products Trend towards health-conscious eating Threats Tough competition Wide variety of competitors

Campaign Objectives
Short-term (1 year): Generate increased consumer interest and buying activity Generate media attention Popularize the Grape-Nuts message by creating shared experiences among consumers Bring Grape-Nuts above 2.5% in market share Long-term (3+ years): Create and sustain consumer loyalty Change negative Grape-Nut brand perceptions Bring Grape-Nuts above 3.0% in market share

LOREM IPSUM

| 11

Proposed Target Market

Our proposed target market is based on research information regarding current users of Grape-Nuts and perceptions of the brand. Demographics Women: food purchasing decision-makers 25-45: highest percentage of Grape-Nut users fall in this age range With families: higher consumption and create generational patterns Suburban to rural: GN users are predominantly from this type of geographical area Mid-high income: over 50% of GN users earned over $35, 000/year At least high school education: Most GN users have high school education or greater and are likely to be in our target income bracket Psychographics This physcographic target market is based on the psychographic information on Grape-Nut users. Health-conscious Independent Leaders Active lifestyle (on the go) Practical Physically fit Outdoors Trendy

Big Idea
Our campaign will feature Grape-Nuts as a breakfast cereal that goes beyond the ordinary breakfast and doubles in many food recipes and life situationsmaking the consumers life better in many ways.

Cognitive
We are taking the cognitive route by showing the consumer how it makes sense for them to purchase Grape-Nuts: the cereal is healthy, versatile, and improves your wellbeing.

Impression and Communica tion

We will communicate to the consumer through varies means of media and the impression we will is leave is the GrapeNuts is a brand relevant to their everyday life. It is versatile in the ways it can benefit the consumer and their family. It will increase the health and general well-being of anyone who consumes the product on a regular basis. Grape-Nuts has the ability to make many parts of the consumers life better.

Solving the Un-Popular Flavor Issue

This approach will overcome the flavor issue since re-inventing the actual product is not a consideration. Grape-Nuts combined with another food product increases its

12 | Endox

usability in the lives of consumers. Regardless of the current breakfast habits of consumers, versatile Grape-Nuts that are combined with many different meals become relevant by enhancing the nutrition, flavor, and texture of many meals.

Reaching Beyond BreakfastEaters

Only By combining Grape-Nuts in delectable recipes, we reach even farther beyond the ready-to-eat cereal industry. This overcomes issues with competition between cereal brands and allows further penetration in the marketplace.

we can build upon it instead. Yes, the product has been around a long time. Yes, it has been unpopular for a long time. But we will offer consumers the same product in a different waycombined with other foods. Reading consumer reviews we have found that even those who are not fans of Grape-Nuts by themselves enjoy them paired is other foods. Our strategy is to not only get the consumer to see it as a breakfast cereal but also a complimentary good to various items.

Marketing Campaign
Slogan
LifeBetter with Grape Nuts

Appealing to Wise Mothers

Our strategy gives mothers a way to sneak the nutritious Grape-Nuts into the food their children will eatkids who would not typically ask for Grape-Nuts in the cereal aisle.

Touch Points
Our touch points are the contact points between us and the consumer. These are the ways we will touch consumers to really influence their perceptions and beliefs. Advertising: Our first point of contact between our product and the consumer will be in our advertising. Our image and message will be strictly controlled by our proposed marketing campaign. Purchasing: Our first point of direct contact with the consumer is at the grocery store when they make a purchase. We are aware of price points within the industry, which indicate that Grape-Nuts is an average priced cereal in the health cereal category. We will increase the value of the product through our advertising in order to

Re-Positioning

For women with families, Grape-Nuts is the breakfast cereal that provides versatility, health, and improved well-being to them and their family. Grape-Nuts is in dire need of a re-positioning strategy. The brand cannot continue a positive existence without a re-invention of its image. The feasibility of the plan we suggest is within reach. It will be a difficult process since the Grape-Nuts image is so deeply rooted in things of the past, and much negativity, but because we are not debating the previous Grape-Nuts image

LOREM IPSUM

| 13

increase consumer after-purchase satisfaction. Consumption: At the point of consumption, we have the greatest impact on the consumers opinion and emotions towards Grape-Nuts. This is one reason why our campaign is centered upon the way in which Grape-Nuts is consumed. When consumers follow our suggestions for food pairings and recipes they will find GrapeNuts to be deliciously versatile and very practical. After-effects: After continued consumption, we want the consumer to experience the benefits of our product. Grape-Nuts caters well to this aspect of our consumer relations because the healthy-improving qualities of the cereal will leave the consumer more energized, more fit, and with a feeling of health and vitality.

Marketing Mix
TV Commercials: 10 Target market: Women are often actively involved in television programming. It is an activity that often unites the entire family. Television reaches everyone. Persuasive: In video format, arguments have the flexibility to become even more persuasive. Tradition: TV commercials are the traditional form of cereal industry marketing; therefore holding a place of authority in the realm of marketing media choices. Selectivity: Airing can be targeted to specific programming slotsallowing for targeted distribution. Creativity: Commercials allow for creativity through the use of special effects, characters, etc. Shared experience: Commercials create a shared experience in popular culture, though they are not as sharable as online mediums.

Packaging Change
In 2009, Post created a vintage package for Grape-Nuts to celebrate the 100th anniversary of the cereal. However, as part of our re-positioning campaign we need to modify the image of the product to make it more relatable to todays customer and our target market. We would commission the design of new packaging with these ideals in mind Modernize Portray versatility Aesthetically appealing

14 | Endox

YouTube: 9 Inexpensive: YouTube advertising is comparably inexpensive. Easily producible: YouTube videos are easily produced and could be open up to customer creation to save even more money and make the consumer involved in the Relatable: YouTube videos are increasingly a shared experience in popular culture which creates buzz and common knowledge conversations about the latest video. Versatile: Consumers from many different media outlets can be re-directed to YouTube videos to widen the scope of the shared consumer experience. Wide audience: The audience of YouTube videos is extremely large and has the ability to expand exponentially as videos are blogged and shared on Facebook or Twitter. Target market: Mothers are increasingly active in online trends, including the latest YouTube videos. Website: 9 Target market: Everyone uses the internet. Mothers utilize resources on cooking websites, which allows us to directly tailor our target market. Versatile: Website advertising can be used to allow a number of different kinds of interaction. Budget-friendly: Web advertising can be tailored to specific budget needspay-perclick and extends into free forms of advertising (YouTube, Twitter, Facebook).

Expandable: Web ads are easily expandable into other online outlets, making the experience much more engaging for the consumer. Facebook: 8 Target market: Increasingly, mothers are finding their way to Facebook. Shared experience: Facebook is a shared experience which earns much time from consumers and often unites popular culture. Blogs: 8 Target market: Mothers are becoming more and more active on blogs, often using them to keep family and friends updated. Versatility: Blogs can be synced in with other social media outlets and touch on many different topics that can impact or promote the Grape-Nuts brandnews, opinion, food, family. Magazine: 7 Target market: Mothers often receive magazine on topics they are interested in. We can target cooking and lifestyle magazine where subscribers are asking to receive information on products offering the benefits we are offering. Expensive: Magazine advertising can be relatively expensive. Twitter: 7 Target market: The target market is not yet extremely active on Twitter; however, this trend will likely change, making Twitter a usable possibility for the future.

LOREM IPSUM

| 15

Twitter marketing includes managing any products online presence and image. This will include monitoring discussion of the product. Activity must be defensive as well as offensive. In-person sample testing: 8 Target market: Mothers who are grocery shopping Reach: Narrow, but it will hit the desired target market, and affects the immediate buyer. Radio: 7 Target market: Mothers often listen to the radio while in the car. Reach: A well-produced radio ad has the ability to reach a large number of consumers in a short amount of time. Sponsorships (athletes, fundraisers, community events): 6 Target market: Women are interested in what is going on around them and are often socially active in their community. Fundraising and community events would be the most effective. Reach: Unfortunately, the type of sponsorship that would reach the largest number of people (athletics) has no impact on our target market. The cash outlay in comparison with the sales benefit is not high enough to make this marketing vehicle worth it. Logos on cars: 4 Expensive: Purchasing a fleet of cars, and retrofitting to advertise the product Drawback: too broad of advertising, and

outside the environment it would be effective. Billboards: 4 Target Market: While moms do drive and often see billboards, the likelihood they will be persuaded into an action through a billboard is slim due to time lapse between exposure and action. Image: Billboard advertising is not often associated with cereal. To use technology so heavily in the rest of our campaign then revert to a more traditional, dated advertising vehicle would case confusion of our message. E-mail: 3 Spam: Internet users are growing increasingly annoyed at e-mail advertising. Video links: We could direct to recipe videos, but the likelihood is high that the message will simply be deleted and relays frustration to the Grape-Nuts brand image for that consumer. Mailings: 2 High advertising-to-sales ratio: Cereal advertising typically leads to less comparable gain than other food industries. Expensive mailings are not cost effective. Spontaneous purchase decision: Cereal is often a spontaneous purchase decision based upon recalled advertising while in the grocery store. Shoppers likely forget to bring special offers they received in the mail with them. Target market: mothers receive extensive amounts of mail and often throw away junk mail without even opening.

16 | Endox

Newspapers: 1-2 Target market: While mothers do read the newspaper, they are not engaged in newspaper advertising to enough of an extent to make this a viable marketing vehicle. Uncertain future: Communication and news is moving online, making the future of newspapers uncertain.

Television Commercial: Opening Vehicle

Kid: Mom, I dont wanna eat the broccoli. Mom: Alright, but if you eat half of it, Ill let you have a cookie. Kid (with excitement): Okay! Kid eats a couple pieces of broccoli then grabs the cookie Mom hands him and runs out the door. Narrator: What Billy doesnt know if that cookie was made with Grape-Nuts cereal, making it the healthiest cookie hell ever eat. Mom stands looking out the window watching Billy devouring his cookie and has a smug and satisfied look on her face. Narrator: Grape-Nuts cereal made Billys cookie better. What else can it do? Go to betterwithgrapenuts.com. Voice-over: LifeBetter with GrapeNuts.

Marketing Allocation Budget

Television: 40% Print: 20% Website: 10% YouTube: 10% Public Relations: 10% Social Media: 5% Other: 5%

MarketingBudget
Television Print Website

Website Advertisement

This website advertisement would be a banner YouTube or sidebar ad placed on PublicRelations sites dedicated to recipes and cooking, frequented by Other mothers. When its clicked on, the ad will lead directly SocialMedia to a video on a video-hosting

LOREM IPSUM

| 17

site such as Youtube.com or Vimeo.com. The video will feature a chef making a dinner recipe with Grape-Nuts cereal as an ingredient and end with a special offer code to redeem for a percentage off a box of the cereal. The websites we choose: Every Day w/ Rachel Ray, Food Network, Good Housekeeping, Cooking Light, Vegetarian Times, are all cooking magazines as well as websites. This type of vehicle was chosen because it attracts our target audience and those using these websites are searching for new recipes. Ad Image: Juicy, appealing meatloaf on a garnished plate Ad Copy: Tired of the same thing for dinner every night? Theres one thing that can make your meals tastier, healthier and more interestingGrape-Nuts cereal. To find out how you can trick your family into eating healthier click here. LifeBetter with Grape-Nuts.

Blogs- Are meant for researching customer reviews and maintaining brand image.

Website
In order to fully integrate all of our internet marketing, we will have a specific campaign website. it will be hosted at the URL betterwithgrapenuts.com and it will be featured with all our advertisements. It will give consumers numerous examples of the ways in which our brand can enhance their lives. This will tie together all our internet efforts,porviding users a landing spot for further interactivity.

Social Media
Facebook- Side panel advertising will stimulate curiosity in the product. Also we will establish our own account or fan page. This will be an effective way to reach our consumer and gauge our customer base. Twitter- Twitter will act as a real time update for those interested in what GrapeNuts is doing. There will be updates about events, and new product lines.

18 | Endox

life both through recipes, weight loss, and health.

Magazine Advertisement
Through advertising partnerships with cooking magazines that also have websites, we will save advertising dollars and reach both online and print readership and beyond.

Public Relations
Faux Hot Dog Vendor We will bring a hot dog vendor cart, complete with a shouting hot dog seller to events such as state fairs, festivals, community sports events, and eventually high-visibility places such as the Today Show. We will film with a hidden camera as customers approach to get a hot dog, are offered free food, and are given food made with Grape-Nuts cereal. The camera will catch their surprised then pleased reaction as they try the product. We will feed these videos into our social media network and create even more media buzz. Philanthropy We will advertise a 4 day event, in which Grape-nuts will give 20% of all sales to the following foundations: Riley Childrens Hospital Help the Hungry Live Strong Big Brother Big Sister These causes improve the Grape-Nuts

LOREM IPSUM

| 19

image and appeal to our target demographic. It shows that Grape-Nuts does its part to feed the hungry (Help the Hungry), improve health (Riley Hospital and Live Strong), and improve lives (Big Brother Big Sister). This endeavor will also gain media attention. Event Sponsorship The U.S. Open in Flushing Meadows, NY would be an event Grape-Nuts would like to be involved with. This event last for two weeks, and there are thousands of spectators as well as detailed media coverage. It is a family environment, with families watching and in attendance. It would be inexpensive to have a Grape-Nuts kiosk with samples present. It is a fun event for families who are interested in seeking an active lifestyle. The U.S. Open embodies the spirit of Grape-Nuts.

Bisquik As a baking products company, Bisquik would provide an excellent co-branding opportunity. Many recipes can be created, written and distributed which require both Grape-Nuts and Bisquik.

Sponsorships
Sponsorships will be giving the three areas below. We feel that they properly portray a positive image. An image that Grape-Nuts is happy to support, and form an alliance with. Breast Cancer Awareness Cooking shows Female tennis players

Direct Marketing
Store samples Grape Nuts will be direct marketed by actually going to retail stores where the product is sold. At the retail store we will hand samples out for customers to try. Instead of having just plain Grape-Nuts, we will have Peanut Butter Bars made that include Grape Nuts. The recipe for these Peanut Butter Bars are advertised and explained on the side of a Grape-Nuts box and also online. People will be able to experience for themselves how good Grape Nuts taste in peanut butter bars. Customers will also realize that Grape Nuts can make unhealthy desserts to be healthier but still taste delicious.

Partnerships & Co-Branding

Yoplait Due to the ease and natural compatibility of yogurt with Grape-Nuts cereal, Yoplait, or a similar brand, is the most optimum company to co-brand with. We want end consumers to see Grape-Nuts not only as a cereal but as a complimentary good. Breyers As an ice-cream cream company that specializes in unique blends and all natural ingredients, Breyers would make a natural partnership with Grape-Nuts. Our cereal pairs well with ice cream.

20 | Endox

On the sample table, there will also be a small recipe tablet that includes other top Grape Nuts recipes. The recipe tablet will encourage customers to by Grape Nuts to try the recipes out for themselves. Direct Mailing Mailing is a direct marketing tool that would be appropriate to use for Grape Nuts, but would only constitute a small part of our efforts. The mailing could be the recipe book and coupons which include all the health benefits that Grape Nuts provide.

purchase, which means that consumers do not put enough thought into it to make a loyalty program effective.

Measuring Effectiveness
Specific Specific measures will be possible through promotional campaigns. When coupons are redeemed, we can track how effective particular promotions or advertisements are. For internet advertising we can track number of clicks per ad with details such as audience, website, time of day etc. For social media, we can track Grape-Nut mentions through internet monitoring, watching to find what avenues are most effective. For our YouTube videos, we can count hits. General More general measurements will come from sales information. In the long run, we will know how effective our campaign is through measures of market share among Grape-Nuts and competitors.

Promotional Campaign
Recipe contest- Cooking conventions will have Grape-Nuts cooking contest. The rules are, there are no rules, but all recipes must contain Grape-Nuts. The winner will receive a $1000 grand prize. Value Packs- Grape-Nuts and Grape-Nuts Train Mix Crunch will be packaged together and introduced to the super market. It will sell for $4.99, but have a value of $6.24 saving the consumer money. It also gives them the opportunity to try the different cereals Grape-Nuts offer.

Loyalty Program
Grape-Nuts will focus on lowering the price per box down to a competitive rate stimulating buyers to be loyal to the brand. There will be no specific loyalty program. These programs can be effective, but often expire at inopportune times, frustrating the consumer. Additionally, cereal purchasing is a necessary, often spontaneous

LOREM IPSUM

| 21

Company Name, 123 Everywhere Ave. City, ST 00000 555 5555555, fax 555 5555555 www.adobe.com