ADV 411 - EXAMPLE

Gardenburger Inc.
Situation Analysis, SWOT Analysis
and
Marketing Strategy
Section 1 - Situation Analysis
1.0 Internal Conditions

1.1A Current Mission (Kellogg’s)

Our Purpose: Nourishing families so they can flourish and thrive.

We are a company of promise and possibilities. Each day represents a fresh

opportunity to share Our Vision, live Our Purpose.

By being mindful and committed to these ideals, we uphold our founder’s

dedication to people and their well-being. And we promote an environment
where we can push beyond boundaries and across borders to create foods and
brands that help to fuel the best in everyone everywhere.

It is this belief that brings us together and sets us apart.

1.1B Current Vision (Kellogg’s)

Our Vision: To enrich and delight the world through foods and brands that
matter.

1.2 Current Strategies

Current Growth Strategy

1. Brand the veggie patty category

2. Leverage the brand into new channels (achieve a min. of 70% penetration
for six SKU’s)
3. Support expansion with advertising and promotion
4. Strengthen leadership position in current channels (food service, club store,
grocery)
5. Develop & introduce new products

Current Marketing Strategy

1. Build awareness of the category and the brand.

2. Position the brand as healthy, great tasting and convenient.
3. Target the brand to the ‘health modifier’ segment.

Current Product Strategy: Focus efforts primarily on veggie patty category rather
than meat alternatives.

Current Pricing Strategy: Slightly higher price than the competition due to
company’s perception that their product was better quality and tasted better.

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 Current Distribution Strategy: Aggressively expand distribution into the
mainstream retail grocery channel.

Current Sales Strategy: Leverage the original Gardenburger veggie patty and its
flavour variants to position its product with the trade as the number one meat
replacement and side dish patty in each of the food service, natural food store,
mainstream grocery retail, and club stores.

Current Spending Effort

1. Focused primarily on print ads in food service trade publications, trade

shows, off-invoice promotions with distributors, in-store sampling and radio
advertising to consumers.
2. Planned to increase budget in 1998 particularly in national television and
print media.

1.3 Brand Strength and Performance

 Gardenburger has steadily grown in sales over the years; from $13M in 1993 to
$39M in 1996
 Distribution is low in the US - 30,000 food service outlets, 10,000 retail outlets,
and over 4,000 natural food stores. However, brand share is high in these retail
categories.
 Currently holds 21% of the meat alternatives market which is second to
Morningstar’s share of 42%.

1.4 Sources of Added Value and SCA

 Uses only natural ingredients.

 Distinctive competency in vegetarian recipes that taste great.

1.5 Resources – human, capital, technological, financial

 CEO, Lyle Hubbard: reputation for increasing distribution of healthy products in

grocery outlets.
 Substantial distribution in health food stores and restaurants.
 Gardenburger has limited financial resources for advertising & promotional
efforts. Their cost structure puts them at a disadvantage vs. their competitors.

1.6 Organizational Structure and Values

 Initially founded in 1981 by restaurant entrepreneur & chef, Paul Wenner.

 Has maintained small organizational structure.
 Sticks to the original recipe and expands product lines from it.
 Hubbard is leading company away from its initial vision into a more mainstream
vision. He is also a ‘meat lover’ and may not share the sensitivities of the

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 vegetarian and healthy food consumers. This direction presents a significantly
higher degree of risk than the company is used to.

Conclusions: Gardenburger is a small company with limited resources. This condition will have a
significant negative impact on the ability of the firm to execute Hubbard’s new strategy.
Gardenburger also does not have the capital or human resources in place to execute the
strategy, particularly the sales force required to achieve the listings required in national grocery
chains.

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2.0 Consumer Conditions

2.1 Market Segmentation

Consumers are currently split into three major segments; ‘Health Modifiers’, ‘Cultural
Creatives’, and ‘Vegetarians’.

All segments appear to present healthy growth prospects over the next few years.
However, the ‘Health Modifiers’ present the largest absolute volume opportunity and it
appears that though per capita usage is moderate now, it will continue to grow.

The promotional tactics most likely to be successful vary greatly by each segment. This
does not present a problem for other brands since they are targeting only one segment.
However, it does present a problem for Gardenburger since they must address the
‘Cultural Creatives’ who currently represent the bulk of their business. Already
Gardenburger has changed its package to be more ‘slick’ which is exactly what the
‘Cultural Creatives’ dislike. Gardenburger’s existing personality appears to appeal to the
sensitivities of the ‘Cultural Creatives’ segment.

2.2 Key Motivators

There are several motivators operating in the category of vegetable patties and related
products. These motivators vary depending on the consumer segment:

Vegetarians: Primary motivation was to avoid all meat products due to value/belief
system. These consumers displayed a high degree of involvement.

Cultural Creatives: Primary motivation was self-actualization and self-expression. These

users also displayed an elevated level of involvement due to the relationship of the
products with the importance of the motivational hierarchy.

Health Modifiers: Primary motivation is to eat foods that fulfilled a healthy lifestyle.
Consumers looked for decreased fat, cholesterol, calories, salt, artificial ingredients and
hormones. Their degree of involvement was less than in the other two segments, but it
still presented a higher level of involvement than for regular grocery shoppers.

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 Vegetarians Cultural Creatives Health Modifiers
Growth Segment is growing. Likely to grow with baby Increasing as health
boomer bubble. concerns is increase.
Usage Heavy users Medium users Medium to light users
Segment Size 16.2 to 17.9 million 50 million 67.6 to 96.5 million
Characteristics  Loyal and enthusiastic;  Seriously concerned  Healthy lifestyle
generated word of with self-actualization. consumers.
mouth  Liked the exotic and  More mainstream
recommendations. enjoyed latest ideas. than the other two
 Three quarters sought  Read labels carefully. segments.
cooking classes, two  More likely to  Watched their fat and
thirds were interested volunteer and be cholesterol intake.
in group visits to activists.  Strived for a balanced
restaurants, and  Slightly better eating plan and/or 2
majority wanted educated. or 3 meatless meals a
nutrition info to help  60/40 female/male. week.
them become or  More likely to be baby  More women than
remain vegetarian. boomers. men.
 Target for any ‘healthy  Spanned age
lifestyle’ retailer boundaries.
Evaluative Health properties. Novelty and  Decreased
Criteria Availability. uniqueness. cholesterol, fat,
Taste. Easy to integrate into calorie and salt levels.
Convenience. creative meals.  Avoidance of artificial
Adventurousness of ingredients and
ingredients. hormones.
 Wanted the taste of
meat.
Promotion More likely to respond  Building relationships. Mass media.
Imperative to demonstrations,  Provide cooking ideas.
samples, preparation  Value honesty,
information, and authenticity and
prepared meals. trustworthiness.

2.3 What the Consumer Buys

Core Product: The core product is a substitute for meat. It is a dynamically continuous
innovation which has responded to an increasing need for healthier food. The features
that meet this growing need are the use of vegetable ingredients to provide protein and
carbohydrates and to minimize fats, cholesterol and additives. The early majority is now
purchasing the core product. Minor change in behaviour is required to switch to these
meatless products.

Each brand offers several products that differ with respect to ingredients and whether
the product is designed deliver a meat like taste. Some products contain soy which
offers additional health benefits.

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 Brand Preferences: Gardenburger offers a set of benefits more likely to appeal to the
‘cultural creatives’ while the other three brands address the ‘tastes like meat’ benefit.

Brand Benefit differentiation/SCA: Value added by benefit:

Gardenburger  Own, distinct flavor, taste and texture A more interesting taste
“superior” to soy or tofu based burgers experience that is healthier
 Low fat. than meat.
 Major ingredients more discernible.
Harvest  Simulate the taste and texture of real meat. A healthy meat replacement
Burger  Contain no animal products. that tastes like meat.
 Protein replacement.
 No cholesterol, saturated fat, reduced fat,
animal fat.
Boca Burger  The great taste of a hamburger with no A great tasting hamburger that
meat. contains no meat.
Conclusions: Preference appears to be driven by segment needs. Adjusting Gardenburger’s
benefit set could result in alienation of their current core of loyal users.

2.4. Where Consumers Buy

Currently consumers can buy meat substitutes at specialty food stores, healthy menu
restaurants, smaller grocery chains, and into the mainstream grocery channel.
Gardenburger’s strengths are in the secondary and tertiary channels. This is consistent
with their segment strength among the ‘cultural creatives’.

Intermediary AFFORDANCES
Description Consumer Manufacturer
Primary: Mainstream  Accessibility  Intensive
grocery chains  Selection distribution
 Convenience  Displays and in-
store sampling
and promotions.
Secondary: 10,000 Retail  More  Making
outlets such as knowledgeable information
grocery & sales staff. available.
specialty stores;  Supports the
4,000 natural food ‘specialness’ of
stores more natural
foods.
Tertiary: 30,000 Food  Opportunity to  Ability to sample
service outlets try new foods. many consumers.
(restaurants)

2.5 Consumer Purchase Decision Process

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 A. Problem Recognition

Non-Meat Eaters Meat Eaters

Actual State: Not many meat alternatives They want an alternative to
that taste good and are meat that is healthier for
convenient. them.
Ideal State: Being able to buy a great To find a healthy alternative
tasting and convenient meat for their diet not based on
alternative. meat.
Life Changing? The problem is not life This can create a lifestyle
changing. They are simply change. The consumer may
looking for a new product reduce or eliminate the
that tastes great. amount of meat in their diet
from this product experience.
Distance Between The actual state and the ideal state are not far from each
the Actual State other. However, there is enough space to create discomfort.
and Ideal State
Level of Consumers have a limited level of involvement, but it is higher
Involvement than for most grocery packaged foods.
Sources of Nutrition labels would be the most common source of
Information information. They may also search online or ask dieticians
and friends and family

B. Information Search

Sources of Nutrition labels would be the most common source of

Information information. They may also search online or ask dieticians
and friends and family
Extent of Search The extent of the search would not be very extensive.
Risk There is a very low risk involved. The product is not very
expensive and does not have to be purchased in large
quantities.

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 C. Evaluation of Alternatives
Decision Criteria 1. Health benefits.
2. Taste.
3. Ingredients.
4. Price.
Complexity of These criteria present a more complicated set of decision
Decision Rules rules. Balancing these criteria presents a more complex
problem than many other consumer packaged foods
decisions.
Evoked Set Morningstar, Gardenburger, Harvest Burger, Boca Burger.

D. AD. Actual Purchase

Influencing Factors Packaging: Ingredients and taste appeal.

at Point of POS Material: Benefits and taste appeal; coupons for
Purchase trial, sampling.
Pricing and displays.
E. Post Purchase Behaviour

Repeat Purchase If taste is delivered along with health benefits,

consumer will likely re-purchase. May refer brand to
friends (brand ambassador status).
No Repeat Likely will not repurchase if taste is not satisfactory.
Purchase
Cognitive Cost/risk associated with purchase is low so dissonance
Dissonance is not a factor.

Conclusions: The Consumer Purchase Decision can be influenced by two main promises: great
taste and nutritional benefits. There are several points in the process where it would be
advantageous to intervene:

i. Problem Recognition: Build awareness that they can achieve their Ideal State
with Gardenburger.
ii. Information Search: Providing nutritional information and taste promise.
iii. Evaluation of alternatives: Provide a simplified evaluation process to the
consumer.
iv. Actual Purchase: Arrange sampling in-store; high value coupons; in-store Point
of Purchase (POP) material that highlights the dual promise of great taste and
nutrition.

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v. Post-Purchase Behaviour: Create communication vehicles encouraging brand
ambassadorship.

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3.0 Competitive Conditions

3.1 Competitive Map

The following Competitive Map places the brands in relation to their current position
within the three main segments of consumers; vegetarians, cultural creatives and health
modifiers. Gardenburger’s three main competitors were more likely to compete in the
health modifier segment. They were all positioned as a meat substitute. Gardenburger
was a vegetable product that didn’t base its taste on being just like a ‘real hamburger’.
This has led to the assumption that it had appeal to vegetarians and health modifiers in
addition to its strength in the cultural creatives segment.

Vegetari Cultural Health Modifier

an Creative

Gardenburger
Vegetarian

Morningstar

Harvest
Boca Burger

Burger
Meat Eater

Meat Products
Lower Cholesterol and Fat

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 There is a risk that major food manufacturers will become interested in the category
should the four main competitors, Gardenburger, Harvest Burger, Morningstar and Boca
increase their success in attracting larger numbers of consumers.

3.2 Competitive Health Measures and Strategies

Morningstar Farms has approximately double the sales of Gardenburger. Morningstar,

Harvest Burger and Boca are positioned as meaty tasting, leaving Gardenburger alone
concentrating on the ‘cultural creative’ segment of consumers. Advertising expenditures
show Morningstar spending over three times what Gardenburger spends.

Morningstar Gardenburger Harvest Burgers Boca Burgers

Brand health $35.8M in sales, $18.3M in sales, $13.7M in sales, $7.6M in sales, 9%
measures 42% MS- down 21% MS- down 16% MS MS
from 46% from 23%
Resources/SCA Market leader. Limited resources. Green giant name. Endorsements
Excellent Pillsbury national
vegetable oriented distribution
recipes and network.
processes.
Segmentation Concentration Changing Concentration Concentration
Strategy strategy focusing concentration strategy focusing strategy focusing
on ‘health strategy from on ‘health on ‘health
modifier’ segment ‘cultural creatives’ modifier’ segment modifier’ segment
with meat- to ‘health with meat- with meat-
substitute modifiers’. substitute substitute
marketing mix. marketing mix. marketing mix.
Positioning “The world’s “Healthy, great “An all-vegetable “A new take on
largest company tasting, and protein product the classic
dedicated solely to convenient” that yields a American burger,
producing and bountiful crop of with the same
marketing taste and serves as great burger taste”
meatless and a welcome
other healthful substitute for
branded food ground beef”
product”
Product Designed to Core veggie patty All vegetable Patties are pre-
simulate the taste has its own unique protein product cooked, can be
& texture of real flavor; 130 designed to pan fried,
meat, but does calories, 3 grams simulate the taste microwaved, or
not contain animal of fat. Uses fresh, of meat. grilled.
products. “common” Contains little or
ingredients. No no fat &
Frozen & canned focus on cholesterol, with
meat alternatives duplicating flavour fiber, protein, and
of meat. complex carbs

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 Price Slightly higher At market pricing. At market pricing.
price than
competitors;
reflects premium
image
Place Mainstream Limited Mainstream Natural foods &
grocery. mainstream grocery. mainstream
grocery stores and grocery outlets
club stores.
Excellent in
restaurants
natural food
stores.
Promotions Spends $14M on Print, POP, TV spots using Does not advertise
advertising. sampling, comparison heavily; relies on
couponing, etc.- strategies (vs. real PR & word of
spent $3M in 1997 meat) mouth- seeding on
talk shows
Target Health & natural Health Modifier Mainstream cooks Vegetarians
Consumer foods consumers; consumer- looking to use
vegetarians & mainstream, as more convenient,
semi-vegetarians 80% of current low-fat foods
users aren’t
vegetarian

Conclusions: The category is in the growth stage of the PLC, and is operating under
competitive conditions of an oligopoly. This would imply that Gardenburger will have to
focus primarily on differentiating their brand and their branded products and introducing
line extensions. They must strengthen their points of differentiation.

They should also focus on maintaining exceptional relationships with the trade, as product
placement, shelf spacing, and sales/trade promotion are Critical Success Factors under these
conditions. This will require a significant increase in promotional spending which will require
a significant investment is resources the company does not currently possess.

3.3 Attractiveness of Industry

Intensity of Rivalry

The intensity of rivalry is less than the average we would expect in a consumer-
packaged food products category. This is because the category is relatively small and
that it is in the growth stage of the PLC. Competitive marketing objectives revolve
around differentiation. Additionally, there are a relatively few number of competitors
and no one has really established a strong Sustainable Competitive Advantage.

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 The size of the category has not yet attracted the large food manufacturers in terms of
launching new entries. However, this may change with the agreement Midland Daniels
has entered with Pillsbury.

Threat of Substitutes

There is probably a higher threat of substitutes for veggie burgers than for real
hamburgers. The key motivator in the category is to eat healthier rather than eat a
burger. Therefore, any other vegetarian food could be a substitute.

Threat of New Entrants

If the category continues to grow, the threat of major manufacturers entering the
category are quite high. Already Pillsbury has shown an interest.

Power of Buyers

Retailers: Independent natural food stores and small chains exert the power of
refusing to carry the brand. But they are small and not organized so any individual
store would present a very limited problem if they did not list the brand.

Chain grocery stores, on the other hand, exert a high degree of power over the
brand. Refusal of one of the major chains would put any brand at a significant
disadvantage.

Consumers: Consumers exert little power over Gardenburger and their competitors.
They are not organized and are not concentrated.

Power of Suppliers

There are many sources for ingredients so suppliers exert little power.

Conclusions: The conditions above indicate the industry is moderately attractive, in its current
state. The one condition of concern is the attractiveness of the category to new entrants. If the
Category grows rapidly, new entrants from the major food companies will likely be launched.
Pillsbury has already been interested enough to enter into an agreement with Morningstar. If
this happens, financial resource availability for advertising and sales promotion will become a
critical issue. Gross margins will be reduced for all category participants in such a scenario.

4.0 STEEPLE Analysis

 Sociocultural:

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 o Trends suggest that healthy, active lifestyles are on the upswing; and mothers
want to bring better foods to the table for their families. Aging baby boomers
and demographic shifts may be a key source behind growing health concerns. A
side effect of this health trend may be the influence of healthier eating and
living habits amongst generation Y’s.
o More and more doctors are recommending that patients cut back on
cholesterol, fat, and sodium intake
o Time is becoming a more and more valuable commodity in everyday life.

 Technological: Consumers are concerned about developments in genetically modified

foods.
 Economic: Slowing economy could work in favour of meat substitutes.
 Environmental: The use of pesticides and bug species could be an issue when using
grains, oats, and vegetables.
 Political: No political issues.
 Legal: Brands must meet criteria related to the use of claims such as 100% organic, no
additives or preservatives, pure, nutritional content, etc.

Conclusions: The macro environmental conditions appear to support the long-term interest of
consumers in meat substitutes. This indicates that this is not a ‘trendy’ category, but one that is
here to stay.

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Section 2 – SWOT Analysis
The key issues identified in the Situation Analysis have been identified and are portrayed in the
SWOT below. The SWOT provides us with critical information for developing successful brand
strategies. The most successful strategies for growth are those that use one of your brand’s
strengths and use it to take advantage of one of the external opportunities which have been
identified. A bigger opportunity will provide higher sales. A more substantial strength will increase
the odds of success.

SWOT for Gardenburger

Strengths Opportunities

 Hubbard was an aggressive marketer successful at building
fledgling businesses.
 Good distribution in specialty and health food stores and
restaurants.
 If tried, there was a high adoption rate.
 On menu at over 30,000 food service outlets.
 Great tasting low-fat product.
 Provides enhanced daily intake of vegetables.
 More than just a meat substitute; it provides a positive
change in diet.
 Brand personality that appeals to the sensitivities of the
‘cultural creatives’.
 Sustainable Competitive Advantage – not meant to taste like
meat.
 Market for healthy foods predicted to continue growing.
 Over 100 million American shoppers are watching their
fat intake.
 Retail availability for health oriented products has
increased substantially.
 51% of shoppers have made changes in their diets due to
health reasons.
 90% of shoppers practiced some level of health-
motivated shopping behaviour.
 26% of adult shoppers were ‘Cultural Creatives’ who
tended to be innovators and early adopters.
 Cooking is a recognized activity that contributes to
several levels of Maslow’s Hierarchy of Needs:
 Love and belongingness.
 Esteem.
 Self-actualization.
 Aesthetics.

Weaknesses Threats

 Narrowly focused company against a specific product
category.
 Limited distribution.
 Small privately-owned company with few capital, human or
financial resources.
 Doesn’t simulate the taste of beef.
 Little presence in the ‘meat alternatives’ sub-segment.
 Underdeveloped in mid-west and south-east.
 Low level of advertising vs. competition.
 Launch of veggie patties by Morningstar into the
refrigerated section.
 Launch of new lines by Morningstar.
 Soy products have many benefits.
 Harvest Burger positioned as an all-vegetable substitute
for meat.
 Morningstar products simulate meat.
 Green Giant name and distribution system.
 Morningstar is spending over 3 times more than
Gardenburger on advertising.
 Mainstream retail channels will demand high trade
promotion support expenditures which will threaten the
profitability of the category.
 Consumers are still reluctant to try healthy products due
to taste concerns.

Strategy Matrix for Gardenburger

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 Strength/Opportunity Matching Strength/Threat Matching

S: Good distribution in specialty and health food stores S: More than just a meat substitute; it provides a
and restaurants. O: Market for healthy foods predicted positive change in diet. T: All Morningstar products
to continue growing. were designed to simulate meat.

S: On menu at over 30,000 food service outlets. S: If
tried, there was a high adoption rate. O: 90% of
shoppers practiced some level of health-motivated
shopping behaviour.
S: Great tasting low-fat product. O: Over 100 million
American shoppers are watching their fat intake.
S: Brand personality appeals to sensitivities of the
‘cultural creatives’. T: Consumers are still reluctant to
try healthy products due to taste concerns.
S: Sustainable Competitive Advantage – not meant to
taste like meat. T: All Morningstar products were
designed to simulate meat.

S: More than just a meat substitute; it provides a

positive change in diet. O: 51% of shoppers have made
changes in their diets due to health reasons.

S: Brand personality appeals to the ‘cultural creatives’.

S: Not meant to taste like meat. O: 26% of adult
shoppers were ‘Cultural Creatives’. O: Cooking
contributes to several levels of Maslow’s Hierarchy of
Needs.

Weakness/Opportunity Matching Weakness/Threat Matching

W: Narrowly focused company against a single product
category. O: 90% of shoppers practiced some level of
health-motivated shopping behaviour.
W: Small privately-owned company: few capital,
human, financial resources. O: Retail availability for
health oriented products has increased substantially.
W: Low level of advertising and promotional support vs.
competition. O: Market for healthy foods predicted to
continue growing.
W: Limited distribution. T: Launch of veggie patties by
Morningstar into the refrigerated section.
W: Narrowly focused company against a single product
category. T: Launch of new lines by Morningstar.
W: Limited distribution. T: Pillsbury has lent Green
Giant name and distribution system to Harvest Burger.
W: Limited financial resources.
T: Morningstar is spending over 3 times more than
Gardenburger on advertising.
T: Mainstream retail channels will demand high trade
promotion support expenditures which will threaten
the profitability of the category.

In the above table, we have matched strengths with opportunities, weaknesses with opportunities,
strengths with threats and weaknesses with threats. In terms of selecting the most advantageous
matchings we should consider the following guidelines:

Each of the matchings has been developed into a Strategy Statement for a different Strategy Alternative.

Below are what represent the most viable Strength/Opportunity Strategy Alternatives:

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Matching Strategy Alternative
S: Good distribution in specialty and health food stores We recommend that the brand expand its distribution in
and restaurants. O: Market for healthy foods predicted to health food stores and restaurants.
continue growing.

S: On menu at over 30,000 food service outlets. S: If tried, We recommend that we focus on our restaurant partners’
there was a high adoption rate. O: 90% of shoppers role in sampling our product.
practiced some level of health-motivated shopping
behaviour.

S: Great tasting low-fat product. O: Over 100 million We recommend that the brand focus on the low-fat
American shoppers are watching their fat intake. attribute of the brand.

S: More than just a meat substitute; it provides a positive We recommend that we build the Garden Burger brand from
change in diet. O: 51% of shoppers have made changes in a niche product to a mass-market national brand.
their diets due to health reasons.

S: Brand personality appeals to the ‘cultural creatives’. S: We recommend that we intensify our focus on our existing
Not meant to taste like meat. O: 26% of adult shoppers franchise of cultural creatives.
were ‘Cultural Creatives’. O: Cooking contributes to
several levels of Maslow’s Hierarchy of Needs.

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Section 3 – Marketing Strategy
Recommendation: The recommended Strategy Alternative for Gardenburger is to intensify our focus
on the 'Cultural Creatives' segment of consumers.

Rationale: Recent research has shown that cooking as a hobby does have the potential to satisfy needs
ranging across Maslow's Hierarchy of Needs. This finding suggests that cooking as a hobby improves, at
least to a certain extent, the person's wellbeing 1.

Gardenburger’s Brand Heartland currently is strongest within the ‘Cultural Creatives’ segment. The
appeal of the brand to this segment is that it allows them to add new dishes to their repertoire of
recipes. This segment, often referred to as the ‘Foodies’ is currently growing and is expected to continue
to grow as the Foodies age and control more of the shopping dollars spent on groceries.

1.0 Marketi ng Goals and Objecti ves

1.1 Goals

 Become the ‘side dish’ of choice among the ‘Cultural Creatives’.

 Become part of the regular repertoire of unique ingredients.
 Develop the most intimate and trusting relationship with ‘Cultural Creatives’ of any brand of
vegetarian patty.

1.2 SMART Objectives

 Increase sales in the first year by 5% (from 18.3 million to 19.2 million)
 Increase brand share by 5% in the first year (from 21% to 26%).
 Increase brand awareness among the ‘Cultural Creatives’ by 15% in the first year (from 50 to
55%)
 Increase audience usage of and interaction with Gardenburger’s website, mobile site and
co-creator blogs by 25% in the first year.
 Increase recipe usage among the ‘Heartland’ consumers by 25% in the current year.

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2.0 Marketi ng Strategy

2.1 Source of Business

The focus on Cultural Creatives leads to the following Sources of Business for Gardenburger:

i. Current Users: Protect our heartland.

ii. New Users:

a. Attract Cultural Creatives who have not tried Gardenburger.
b. Attract Cultural Creative who are entering the ‘meat substitute’ category.
c. Attract users of other ‘recipe enhancement’ products.

Rationale:

The ‘Cultural Creatives’ account for approximately 26% of the category. The importance of
these ‘foodies’ is expected to grow as this is a growing phenomenon ‘Generation X’
consumers. As these Gen-Xers see increase in income and become ‘gentrified’, it is likely
their interest in cooking as an outlet for their creativity will increase.

‘Cultural Creatives’ are already using ‘recipe enhancement’ products. These can be spices,
trendy vegetable and leafy greens such as kale, and other additives such as balsamic
vinegar.

‘Cultural Creatives’ are experiencing an awakening to the use of ‘meatless’ recipes.

2.2 Target Market

The heavy users of the Gardenburger product tend to be higher income and have a higher
educational level than average. They are looking for new food experiences. This group
resists the mainstream, and they do not mind spending a little more on a product that better
suits their unique tastes. They are seeking a product that is unlike others and has the
potential to add variety to their cooking.

Demographics

 Females aged 25 – 49 who are the primary meal planners. However, there is a growing
trend of men taking active part in the ‘cultural cooking’ experience.
 College and university education.
 Higher family income.
 More likely to be from Generation X (born between 1965 and 1984) and early
Generation Y (1984 +).
 Cities 200,000+.
 Young children and no children households.
 Managers, professionals, white collar.

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Psychographics

 strong desire for self-actualization

 like the exotic and enjoy new ideas
 read labels carefully
 more likely to volunteer and be activists
 prefer cultural cuisine and new flavours and ingredients in menu items when eating at
restaurants
 resist the mainstream food choices
 seldom eat traditional fast food
 tend to do at least some of their regular grocery shopping at specialty shops
 care more than the average about their personal health and the environment

Needs Fulfilled

Their need for self-esteem and self-actualization comes from career success, gentrification, and
cultural experimentation; in travel, friends, associations and cooking.

Consumer Behaviour

 Consumers are more involved in their food choices than the average consumer.
 They tend to read the nutrition information on the package before buying and compare
labels before buying.
 These consumers tend to avoid artificial ingredients and hormones in their food.
 They try to buy ‘fresh’ and ‘local’ produce when possible.
 Their weekly shopping budget is higher than average due to the items they buy and
their frequent trips to specialty food stores such as WFMI.

Consumer Profile/Persona Summary (Complete Persona in Appendix)

The Female ‘Cultural Creatives’ target consumer can be thought of as a cross between Nigella
Lawson, Julia Dimon from the TV show 'World Travels', and Juliana Margulies, star of the Good
Wife.

She enjoys going out to new restaurants that serve a variety of world dishes and organic menu
items. She is contemporary in her music selections, goes to her yoga classes regularly, preferring
HBO, AMC and Showtime to traditional Network TV, and watches TV related to world travel and
cooking.

She travels internationally for vacations, preferring Europe and Asia to North America and the
Caribbean.

The Male ‘Cultural Creative’ (fill in details).

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2.3 Positioning

Positioning Strategy

Primary Connection: Gardenburger is currently connected to ‘Cultural Creatives’ who relate

best to the following product characteristics: Natural, New Recipes and New Ingredients.

Secondary Connection Characteristics:

 Self Esteem.
 Try new things.
 Innovative.

Unlike all the other patties, Gardenburger is unique thus having the most potential to create
and transform recipes. The brand that is in touch with the ‘Cultural Creatives’ and cares about
the things that are important to this group, unlike the other competitors who ignore their
need to be creative in their cooking.

Positioning Statement

To the ‘Cultural Creatives’, Gardenburger is a unique vegetable patty that allows

you to be more creative in your cooking.

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