MKTG 556 A: Advertising and Promotion

Aspire Foods –
Integrated Marketing
Campaign
Wednesday, December 6, 2023
Felipe Sanchez and Jon Choi
Table of Contents
> Background
– Aspire Food Group
– EXO Inc.
– Snack Bar / Insect Protein Market
> Marketing Objective
> Segmentation, Targeting, Positioning
> Consumer Behavior
> Selling Idea
> Promotion Mix
> Measures of Success
Company Background:
ASPIRE FOOD GROUP
Aspire Food Group: History
> Founded in 2012
> Winner of $1M Hult
Prize in 2013
> Headquarters in
Austin, TX
> Production of Micro-
Livestock in Ghana
Aspire Food Group: Main Mission
> Apply technology and automation to farming
insects in order to solve food insecurity and
sustainability challenges around the world.
Aspire Food Group: Production Capacity
> 2,323m2 facility
> Annual Numbers
– 264 million crickets
– 15,875 Kg. of powder
> 0.06 g. per cricket
> Monthly Numbers
– 22 million crickets
– 1,323 Kg. of powder
Aspire Food Group: Products
> Cricket Powder
> Whole Roasted Cricket
– Various Flavors
> sour cream & onion, sea salt,
sriracha, etc.
> Granola Protein Bites (made
with Cricket Powder)
– Various flavors
> Maple cashew, nutty
chocolate chip, pumpkin
spice, etc.
Aspire Food Group: Product Differentiation
> Safer to consume
– Less likely to transmit zoonotic
diseases (e.g. mad-cow)
> Better animal welfare
> Lower resource impact
– 38x less land, 23x less water, and
12x less feed than beef
> 1,815x less greenhouse gases
– 2.5x more protein, 12x more
calcium, 2.7x more iron per gram
> Vertically integrated
Company Background:
EXO INC.
Exo Inc.: Products Sold
> Cricket Protein Bars
– $3 retail price
– $1.95 wholesale price
– $0.95 cost of goods sold
– $1 profit margin per bar
Exo Inc: Target Segment
> Values > US
– Clean ingredients > Millennial
– Ethical sourcing > CrossFit
– Transparent supply
chain > Paleo
> Athletic
Exo Inc: Channels
> E-Commerce
– Direct through website
– Through e-commerce
retailers
> Amazon
> Social Media
Main Competitors
Direct Competitors:
> US: Chapul
> Canada: Landish, Näak
> Europe: Eat Grub, Jimini’s
– Competition is not only
against protein snack
brands but also stablished
companies (Cliff)
Other Insect Products:
> Insect protein powder (Crik
Nutrition)
> Tortilla chips (Chirps Chips)
> Snack mixes (Don Bugito)
> Pasta (Bugsolutely)
> Snack bites (Seek)
Indirect Competitors:

> Traditional Protein Bars

> Plant-based Protein Products
Marketing Objective
> Increase awareness for the insect protein industry
> Increase acceptance for the industry
> Create a consistent marketing campaign
– Search engine optimization
– Advertisements on key social media properties
– Engagement with influencers/bloggers
– Attendance at conferences
Communications Effects Pyramid
Repurchase
/ Regular
> Main goal is awareness
and knowledge
Use (5%)

> To get millennials to

Trial (20%)

Preference (25%) learn about the insect

protein foods as an
alternative to
Liking (40%)

Knowledge/Comprehension (70%) traditional protein

sources, and to
Awareness (90%)
consider purchase
Hierarchy of Effects Model
> Cognitive stage
• Awareness – Increase awareness and
Cognitive • Knowledge
knowledge
> Affective stage
• Liking
Affective • Preference – Get demographic to
• Conviction
consider the product as
an alternative
Behavioral • Purchase
Snack/Protein/Nutrition Bar
Market Summary &
Segmentation
Insect Protein Market: Growth & TAM
> Growth > Total Addressable
– Projected to grow Market
about 28% annually – US Snack, Nutrition,
– $213M in sales in 2023 and Performance Bar
– $8B in sales by 2030 Market
> 37.6x growth in 7 – $7B in 2018, $7.7B by
years 2023
> 10% growth in 5 years
– Performance protein
bar retails for $3 avg.
Insect Protein Market: Opportunities
> Estimated 80% of the world’s people purposefully
eat insects
> Almost all of the world’s population unwittingly
eats insect parts in products such as peanut
butter, tomato sauce, and chocolate
> 40% of vegetarians/vegans are willing to try
insects
– Based on Aspire’s sampling events
Insect Protein Market: Competition
> Wholesale Farmers
– Entomo Farms (Canada)
> Brand Manufacturers
– Chapul (US)
– Landish (Canada)
– Naak (Canada)
– Eat Grub (UK)
– Jimini’s (France)
– Whole (Denmark)
Insect Protein Market: Consumers
> Choosing Snacks
– 67% of US consumers are driven by flavor
– 33% of US consumers are driven by price
– 30% of US consumers are driven by calories
– 27% of US consumers are driven by brand
– 27% of US consumers are driven by ingredients
– 26% of US consumers are driven by protein content
Insect Protein Market: Trends
> 66% of consumers wish for more healthy snack options
> 52% believe taste is more important than health when eating snacks
> 2/3 adults eat bars (169.3M / 254M in the US)
– Snack Bars (48% penetration)
– Nutrition Bars (40% penetration)
– Performance Bars (11% penetration)
> Majority of adult bar eaters are under the age of 45
> Men and women equally like to eat bars
– However, men make up a significantly larger share for performance bars
Insect Protein Market: Segment 1
> Sports Performance Crowd (Athletes)
– 4% of the market
– 5 bars / week
> Weekend Warriors
– 3% of the market
– 1-2 bars / week
> 1 of 20 can be persuaded to buy Exo bars regularly
Insect Protein Market: Segment 2
> Eco-conscious consumers
– Ethical vegetarians / flexitarians, etc.
– Looking to limit meat in their diets
– 5% of the market
– 3-5 bars / week
> 1 of 20 can be persuaded to buy Exo bars regularly
Insect Protein Market: Segment 3
> Outdoor enthusiasts / adventure seekers
– 21% of the total US population (68.7M / 327M)
– 1-2 bars / week
– Rock climbing, skiing, long-distance hiking, backcountry
hunting, kayaking, etc.
– Very brand loyal
– Large number of influencers
Insect Protein Market: Segment 4
> Children
– 10% of the total US population (32.7M / 327M)
– 5 bars / week
– Between ages 2-8
– 5% of the market
> 1 of 20 can be persuaded to buy Exo bars regularly
Insect Protein Market: Segment 5
> Consumers with Food Sensitivities / Allergies
– Cricket protein still incompatible with shellfish allergy
– Gluten / soy / nut / dairy-free
– Share ideas in online communities
– Brand-loyal
Insect Protein Market: Segment 6
> Millennials
– 24% of the total US population (78.5M / 327M)
> Larger than any other demographic in the US
> More in the workforce (expected disposable income of $1.4T
by 2020)
– 3-5 bars / week
– Eco-friendly
– More open to new experiences
– Enjoy innovative products
– Consume trendy foods
Targeting
Considerations
> Brand Loyalty
– Consumers with special dietary needs
– Catered to their needs
> Brand Reputation
– Transparent business practices and product reliability
> Image and Marketing
– Effective marketing that resonates with customer’s values
> Environmental Impact
– People, Planet and Profit
Targeting Strategy

4% of Highly interested in nutrition

Sports and Fitness
Enthusiasts the MS Physical activity is key
Consume 5 bars per week on avg

Disposable income
Millennials 24% of
Largest portion of the workforce
the US
Trend-savvy and health aware

Significant Open to try new foods

Children and
Families portion Parents are interested in healthy,
nutritious options for their kids
Positioning
Positioning by Attributes and Benefits
> Product positioning
– High-end premium nutrition source
– High protein, low impact
– Innovative approach for nutrition
> Brand positioning
– Benefits of cricket protein
– Educate consumers
Positioning Statement

“Exo offers millennials and families a range of flavorful,

nutritionally rich insect protein products, designed for
both taste and sustainability. Our innovative snacks,
known for their appealing presentation and delicious
flavors, cater to the health-conscious and eco-friendly
preferences of a new generation.”
Projected Annual Profits by Consumer Segment
> Assumptions for Math calculations:
o US Population: 327 million
o Profit per bar: $1.95 (wholesale price) - $0.95 (cost of
goods sold) = $1.00.
Top 3 sectors from a Revenue Standpoint
> Sports Performance and
Weekend Warriors
– 7% of the Population
– Segment size: 7% * 327M =22.9M
– Annual consumption: 22.9M
people * 3.25 bars/week * 52
weeks/year = 3.9B bars/year.
– Annual profit: 3.9B bars/year
* $1.00/bar = $3.9B
– 1 / 20 will purchase Exo bars
regularly = $3.9B / 20 =
$193.4M
> Eco-Conscious Consumers
– 5% of the Population
– Segment size: 5% * 327M =
16.4M people.
– Annual consumption: 16.4M
people * 5 bars/week * 52
weeks/year = 4.3B bars/year.
– Annual profit: 4.3B bars/year
* $1.00/bar = $4.3B / 20 =
$212.6M
Top 3 sectors from a Revenue Standpoint
> Outdoor Enthusiasts and
Adventure Seekers
– 21% of the Population
– Segment size: 21% * 327M = 68.7M
people.
– Annual consumption: 68.7M
people * 2 bars/week * 52
weeks/year = 7.1B bars/year.
– Annual profit: 7.1B bars/year
* $1.00/bar / 20 = $357.1M
> Children
– 10% of the Population
– Segment size: 10% * 327M = 32.7M
people.
– Annual consumption: 32.7M
people * 5 bars/week * 52
weeks/year = 8.5B bars/year.
– Annual profit: 8.5B bars/year *
$1.00/bar / 20 = $425.1M
Top 3 sectors from a Revenue Standpoint
> Consumers with Allergies
– No market share data from
this customer segment.
> Millennials
– 24% of the Population
– Segment size: 24% * 327M = 78.5M
people.
– Annual consumption: 78.5M
people * 5 bars/week * 52
weeks/year = 20.4B bars/year.
– Annual profit: 20.4B bars/year *
$1.00/bar / 20 = $1.02B
Top 3 segments from a Revenue Standpoint
> Millennials
– $1,020M
> Children
– $425.1M
> Outdoor Enthusiasts
– $357.1M
Target Segment: Millennials + Children
> Entry Market
– $1.445B initial consumers
> Total Market Potential
> $28.9B total addressable
market
> Ages 27–43
– born 1981-1996
– 30% had children under age
6 in 2019
> Concentrated marketing
Consumer Behavior
 Consumers’ definition of healthy food in the US
Consumers are looking for good sources of protein and nutrients
Share of respondents
0% 5% 10% 15% 20% 25% 30% 35% 40% 45%
Fresh 40%
37%
Good source of protein 33%
28%
Good source of nutrients (e.g., potassium, vitamin D) 28%
26%
Low Sodium 25%
25%
Minimal or no processing 23%
21%
Low in total fat 21%
21%
Limited or no artificial ingredients orpreservatives 20%
19%
Good source of healthy fats (e.g., monounsaturated or polyunsaturated fats) 18%

https://www-statista-com.offcampus.lib.washington.edu/statistics/1378207/consumers-definitions-of-healthy-food-in-the-us/
 Top Food Benefits US Consumers Seek
Digestive/gut health is particularly important to millennials
Energy/less fatigue Weight loss/weight management Digestive health/gut health
Heart/cardiovascular health Emotional/mental health Healthy aging
Muscle health/ strength and endurance

50%
45%
40%
Share of respondents

35%
30%
25%
20%
15%
10%
5%
0%
Gen Z Millennial Gen X Boomer

https://www-statista-com.offcampus.lib.washington.edu/statistics/1378962/benefits-consumers-seek-from-food-and-beverages-us-by-generation/
 Gluten-Free Dietary Restriction by Generation
Millennials have the highest percentage of gluten-free diet
16%
14%
14% 13%

12%
Share of respondents

10%
8%
8%

6%
4%
4%

2%

0%
Generation Z Millennial Generation X Baby Boomer

https://www-statista-com.offcampus.lib.washington.edu/forecasts/1329375/gluten-free-consumers-by-generation-us
 Post Covid in the United States
Change in reported healthy eating habits since the COVID-19
outbreak

https://www-statista-com.offcampus.lib.washington.edu/statistics/1378962/benefits-consumers-seek-from-food-and-beverages-us-by-generation/
 Millennials dominate the US adult population
> Millennials comprise
over 36% of the US
adult population

https://www.brookings.edu/wp-content/uploads/2016/06/Brookings_Winogradfinal.pdf
 Millennials are also very skeptical
> Compared to other
generations,
Millennials are less
trusting of what others
say
– Marketing campaigns
need to provide facts
and evidence

https://www.brookings.edu/wp-content/uploads/2016/06/Brookings_Winogradfinal.pdf
Consumer Persona: The McDonnell Family
The McDonnell Family

Bio
The McDonnell family of four lives in
Seattle, WA. Both parents work
remotely in tech. The children are 2 and
7, and have food allergies (soy /
gluten). The parents are conscious of
trying to instill healthy eating habits for
the family. The parents are both highly
educated (MBA from Foster) and care
deeply about leaving a habitable
environment for their children (climate
change / environmental impact).
Goals
- To create healthy eating habits at home
- Reduce the family’s overall carbon footprint
- Simple snacks for easy eating / clean-up
Frustrations
- Most snacks don’t meet dietary restrictions
- Soy allergy means reliance on meat for protein
- Children need portable snacks for school
Education

“Our children have food allergies so we Location: Bellevue, Washington Wealth

are extremely careful with what snacks Income: Middle-High ($600K household)
we buy and place in our homes. Media: Streaming (YouTube, Twitch, Involvement
Disney+), TV (HBO, HGTV)
Healthy eating is very important to us.” Magazines (GQ, Esquire, Vogue)
Notes: SoulCycle Members
ex-CrossFit Athletes
The selling idea
The selling idea

"Exo's campaign features family-friendly, visually

appealing insect protein bars, emphasizing their
delicious flavors and sustainable benefits, appealing to
both health-conscious and sporty parents and their
adventurous, taste-driven kids."
Reasons to believe
Rich in protein & essential vitamins makes them an ideal choice.
0% 5% 10% 15% 20% 25% 30% 35% 40% 45%
Energy/less fatigue 40%
39%
Healthy aging 34%
32%
Heart/cardiovascular health 30%
27%
Muscle health/strength and endurance 27%
25%
Immune function/immune health 25%
24%
Bone health 23%
21%
Lowering inflammation 20%
16%
Cancer protection/prevention 13%
Reasons to believe
Insect protein is a more sustainable and environmentally friendly
alternative to traditional protein sources.
Reasons to believe
The brand's commitment to health and the environment resonates with
consumers' desire to make responsible choices
Promotion Mix
Tagline
Product Line 1: Kids

“Tiny bites, big adventures”

Product Line 2: Young adults and millennials

“Train hard, snack smart”

Appeal: Rational or Emotional?
Rational appeal will be a better fit for the chosen segment
> Rational Appeal
– Feature
> More protein, calcium, and iron per gram than beef
> Benefits for your health and your planet
– Competitive advantage
> Less waste of water, land, and feed
> Extremely reduced greenhouse gas emission
> No allergy-related dietary restrictions
Execution
Testimonial, Comparison, and Demonstration.
> Testimonial
– Video ad on YouTube/Instagram/TikTok w/ user testimonials
> Comparison
– Print ad on GQ / Esquire / Vogue comparing Aspire/Exo
products with other snacks / protein sources
> Demonstration
– Guerrilla marketing at tech conferences to drive awareness
through blind tastings
Promotional Component
Meet the Millennials where they are
> Social Media and Digital Marketing
– Instagram, TikTok, YouTube
> Best channel to reach Millennials
> Utilize influencers for product endorsements and reviews
> Guerrilla Marketing
– Blind tastings at different events (e.g. tech conferences)
– Interactive installations at gyms, schools, sports events
Product Line 1
Delight in every bite! Exo bars – the fun, nutritious snack for
kids > Visual Design
– Vibrant and eye-catching
> Featuring the flavors
> Packaging
– Eco-friendly and biodegradable
– Easy to carry, easy to open
> Interactive
– QR code for games talking about
sustainability
Product Line 2
Go hard or go home. Exo bar fuels your day
> Visual Design
– Minimalist designs
> Featuring the protein content
> Packaging
– Eco-friendly and biodegradable
– Icons indicating gluten free, calorie
count, sugar level
> Brand name and logo
– To generate loyalty
Promotional Components
> Social Media targeting Young Millennials
– YouTube for millennial parents looking for healthy snacks for
their kids
– TikTok for young adults and athletes showing a fast-paced
lifestyle consuming Exo bars
> TV Ads
– Targeted mainly at kids who watch TV and Streaming content
– Featuring kids trying the new Exo bars for kids and enjoying
them
> Print Ads
– Magazine advertisements. Focus on health and fitness lifestyle
Social Media: Millennial parents

Parents browsing They discover Exo bars, Scene shifts to home, Delight in every bite
through supermarket intrigued by the where kids are trying logo
aisles, looking for packaging and the bars. Parents smile
healthy snacks nutritional content
Social Media: Athletes

The reel features One of the athletes This scene shows

Upbeat music the Call to action
quick cuts of takes one bar out
plays in the transformational
millennials of her pocket. She
background benefits she feels
working out at the starts eating.
gym,
Guerrilla Marketing

Sales representatives are promoting EXO products EXO marketing associates partner with real estate agents to provide samples of EXO
to attendees of a tech conference. products to open house visitors.
TV Ad
TV Ad focuses on marketing the snack bar line to children.

A 7 year old kindergartner is
seen walking to school holding
mommy’s hand.
During lunchtime, the
kindergartner is seen excited to
open her lunchbox
The lunchbox contains a banana,
orange juice, a corndog, and an
EXO snack bar (chocolate flavor)
that looks just like a chocolate
candy bar
The kindergartner munches on
the EXO snack bar and has a
giant smile on her face.
Background voice: EXO snack bar,
healthy has never tasted so good.
Measures of Success: Social Media
> Views
– How many viewed the
ads on each platform?
> Clicks
– How many clicked to
visit the website?
– How many people
followed the
influencer/brand
accounts?
Measures of Success: Print Ad
> Newsletter / Email
Sign-Up
– Ask how did you find out
about our brand?
> Selection of GQ /
Esquire / Vogue, etc.
> Purchases
– How many used the
unique coupon codes
included in the print ads?
Measures of Success: Guerrilla Marketing
> Visits / Sign-Ups
– How many visited the stalls?
– How many signed up for
the email list?
> QR Code
– How many visited the
website using the unique
QR code from the event?
> Purchases
– How many purchased using
unique coupon codes?
Thank you!

Q/A?