TEAM 3

Zachary LeBlancCourtney KramerEmily MormileOlivia HillAllison Keaton

Spring 2016

POP

CRUNCH

CREATE

EXECUTIVE SUMMARYPringles has been a leading brand in the potato chip market for 50 years. Our research indicates that while potato chips are consumed by no one particular demographic, it is typically the mother of the household that makes most of the purchasing decisions. Our research also indicates that as purchasing power shifts to the millennial generation, we see millennial values reflected in how, why, when and where certain products are purchased.

This research led us to identify our target audience as the Millennial Generation. This generation, aged approximately 20 – 35 are educated, connected and much less conservative than previous generations. They value community while still retaining a sense of individuality, they appreciate value as opposed to cost, and prioritize being a good parent or partner over owning a home and having a large salary.

Our research supports the idea that while Pringles may not be recognized as the most practical, cost efficient or healthiest chip, one characteristic sets it apart from competitors – Personality! From Julius Pringle, the bow tied mascot, to the saddle shaped chips stacked inside their unconventional tube-shaped packaging, Pringles is a potato chip that is fun!

Our strategy: Use Pringles’ one-of-a-kind packaging to strengthen Pringle’s position as the “fun” and ”creative” brand of potato chip by offering consumers an experience that

transcends traditional snacking, in a way that caters to target consumer values.

This campaign will be conducted through a number of mediums, such as television ads, print ads and several accommodating social media platforms such as YouTube, Instagram and Facebook during the course of 7 months.

TABLE OF CONTENTS INDUSTRY ANALYSIS..1

CURRENT INDUSTRY TRENDS.. 2COMPETITIVE ANALYSIS.. 3

COMPETITOR MEDIA SPENDING.. 4COMPETITOR CONSUMER DEMOGRAPHIC.. 5

PRINGLES CONSUMERS.. 6PRINGLES AD SPENDING.. 7

PRINGLES PAST CAMPAIGNS.. 8SOCIAL MEDIA ANALYSIS.. 9

PAST SOCIAL MEDIA CAMPAIGNS.. 10SWOT ANALYSIS.. 11

OBJECTIVES.. 12MEDIA SCHEDULE.. 13MEDIA RATIONALE.. 14

MEDIA PLAN.. 15INSTAGRAM.. 16

COMMERCIAL STORY BOARD.. 17-18COMMERCIAL ADVERTISEMENT.. 19

COMMERCIAL VIEWER ANALYSIS.. 20PRINT ADVERTISEMENTS.. 21

BANNER ADVERTISEMENTS.. 22RETAIL DISPLAY ADVERTISEMENT.. 23

BUDGET BREAKDOWN.. 24ANALYSIS.. 25

1INDUSTRY ANALYSIS

• In 2015, US chip sales reached $13.6 billion, a 21% increase from 2010. Mintel forecasts that this market will grow another 17% to $15.8 billion by 2020.

Year $ Millions % Change

2016 (forecast)

14,086 +3.9

2017 (forecast)

14,590 +3.6

2018 (forecast)

15,062 +3.2

2019 (forecast)

15,487 +2.8

2020 (forecast)

15,797 +2.0

US Sales Forecast of Chips at Current Price

Mintel 2014

2CURRENT INDUSTRY TRENDS

• The tortilla chip segment grew faster than any other category segment. Sales were boosted by perceived positive health perceptions, as well as increased interest in international dips and innovations in flavor design.

• Buyer interest in dips such as salsa, guacamole and hummus are boosting competitor sales.

Mintel 2014

3COMPETITIVE ANALYSIS

●Estimated 9% market share●2015 Sales: $521 million●This well known ridged chip

comes in a number of flavors including Cheddar, Barbeque, Sour Cream, Original and more. Ruffles also sells a variety of dips to compliment its chip which helps to boost revenues.

●Estimated 28% market share●2015 Sales: $1.65 billion●The current market leader with over

a quarter of the market share, Lay’s offers a variety of products and flavors containing natural ingredients, including Baked Lay’s, Classic Lays, Wavy Lays, And Lays Stax - a Pringles lookalike.

Mintel 2014

4COMPETITOR 2014 MEDIA SPENDING

LAY’S RUFFLES

$729 K $63.1 M

Cable TV: 65.1%Magazines: 27.8%Spot TV: 0.8%US Internet – Display: 0.6% Span Lang Net TV: 3.9%Other: 1.8%

Spot TV: <.01%US Internet – Display: 74.7%US Internet – Search: 25.3%

2014 Advertising Red Books

5COMPETITION CONSUMER DEMOGRAPHIC

RUFFLES LAY’S 73% White72% Women63% Adults 18-4964% w/ Kids <17

74% White73% Women

59% Adults 25-54

58% w/ Kids 17

• These consumers are mostly married and have owned a home for at least 5 years.

• These competitors sell similar products and target the same consumer demographic as Pringles

2014 MRI Data

6WHO ARE PRINGLES CONSUMERS?Consumers in 2014:● 76.5 percent were white.● 74.5 percent were women.● 66 percent were adults between the age of 25 - 54.● 73.2 percent have at least one child aged 17 or

younger.

Household Income of Consumers● <$20,000: 15.8%● $20,000 - $29,999: 10.3%● $30,000 - $39,999: 10.1%● $60,000 - $74,999: 9.8%● $150,000<: 9.4%

Summary: Consumers in 2014 were mostly low to middle class mothers with at least one child. Children, in this case 17 or younger, have a strong influence on purchase decisions in the home, especially snack foods.

2014 MRI Data

7

• PRINGLES accounts for 5% of Kellogg’s overall media budget.

• PRINGLES’ 2014 media budget was $31 million.

PRINGLES AD SPENDING BREAKDOWN

Advertising Red Books 2014

8PRINGLES PAST CAMPAIGNS

• Singing Mr. Pringles (2000/2001): Last commercial campaign with a consistent theme across all ads before “You Don’t Just Eat ‘Em”

• Pringles Karaoke Prank (2015) : Viral video showing concert goers in Ibiza in what they think is a karaoke booth – It isn’t.

• Pringles Blindfold Ad (2015): Part of ongoing “You Don’t Just Eat ‘Em” Campaign

9SOCIAL MEDIA ANALYSIS

PRINGLES

LAYS

RUFFLES As of 02/2016

TWITTER: Encourages 2-way communication and fosters customer service.

FACEBOOK: Trivia, Promotions and both company & consumer photos.

INSTAGRAM: Creative photos and videos promoting the snack.

YOUTUBE: Fan made videos, celebrity endorsers and Pringles daily operations.

10

#YouDontJustEatEm: Campaign was launched across several social media platforms using the hashtag. The purpose of the campaign was to have consumers take photos of themselves doing something with the snack other than just eating.

#TheLastPringle: Multi platform campaign that begs consumers the question: What would you do with the last Pringle?

PAST SOCIAL MEDIA CAMPAIGNS

11SWOT ANALYSIS

STRENGTHS

WEAKNESSES

• Differentiates from competitors through unique packaging as well as the unique shape of the snack.

• Strong brand awareness and a strong social media presence.

• Made with more artificial / unhealthy ingredients than most competitors.

• Media budget significantly smaller than competitors.

• Distinctive packaging and shape has allowed the brand to differentiate itself from competitors on social media.

OPPORTUNITIES

• Lay’s dominates the potato chip market with 28% of the market’s brand share while sales grow annually.

• Retail display locations – Not located w/ chips

THREATS

OBJECTIVES

• To raise awareness of Pringles’ Pop, Crunch, Create campaign through the use of YouTube and Instagram.

• Achieve a total of at least 50,000 impressions and at least 1,000 views total on YouTube. (2% View Rate)

• Receive at least 5 examples of viewer feedback across all mediums. i.e. YouTube/ Instagram

comments, shares etc.

12

MEDIA SCHEDULE 13

MEDIA RATIONALEOur research lead us to believe that using this media plan, it would allow us to most effectively reach those consumers that we were most trying to have an impact on – Millennials and young parents.

The most important medium, and with the most significant impact on our budget, is television ads. We decided to broadcast our 90 second ad on 4 different networks (ABC, CBS, FOX and NBC). Amongst these networks, the highest frequency will be on ABC Family, as it has the largest likelihood of reaching parents as well as their children. Saturday Night Football, being a prime time spot, will also allow our ad to have an enormous number of impressions. The other 3 networks were decided on as a result of our budget in combination with our target market. Amongst these networks, during these times of year, feature some of the most popular television series among millennials including Big Bang Theory and Bob’s Burgers

Our print schedule was built around the idea that we would be targeting young mothers as well as women considering children in the future. Fashion magazines, home and gardening magazines etc. will receive a lot of impressions from our target. ESPN magazine was chosen to reinforce the impact that we expect to have on those who view our ad during Saturday Night Football and MLB Baseball

Our web strategy was based on the fact that web ads will account for a small portion of our budget. It costs very little to run a web campaign year round.

14

MEDIA PLANPAID:• Instagram• YouTube – Google Ad Words• Television

SHARED: • Instagram• YouTube• Facebook

Programmatic RTB will be used to purchase display ads from relevant websites including social media platforms like Facebook and Instagram. Given our large portion of our budget designated to television advertising, programmatic buying will save both time as well as money.

15

INSTAGRAM

9 Posts540 Followers

DIY posts to engage with interested consumers.

Several campaign print ads as well as a link to commercial.

Featured “shout outs” to Instagram users who have already made their own “can creations”

16

17STORY BOARD part I

STORY BOARD part 2 18

YOUTUBE ADVERTISEMENT 19

The Pop, Crunch, Create commercial conveys the message that consumers can create an experience; one that goes beyond snacking

YOUTUBE RESULTS

4/20 – 4/2529,850 Impressions736 Views2.5% Viewer Rate

In-Stream View Rate

In-Display View Rate30.27%

1.66%

AGE DEMOGRAPHIC35 – 44 (39%)25 – 34 (32%)18 – 24 (29%)

• 50/50 Split amongst genders• Highest Impressions amongst parents • Highest views from parents

INTERESTS1. Cooking Enthusiasts2. Music Lovers3. Social Media Enthusiasts

20

PRINT ADVERTISEMENTS 21

CREATION BANNER ADS

• Animated• Dynamic Ads• For both Web and Television

display

22

MOTHERS DAY BANNER

• Static• For Web Display Only

RETAIL DISPLAY AD

• This retail display ad will be used to capture consumers’ attention and encourage them to be part of the campaign upon purchase.

• Part of the strategy to combat Pringles poor in-store location.

23

BUDGET BREAKDOWNTELEVISION

Commercial Production: $1 MillionCommercial Broadcast: $7 Million

PRINT

Magazine Ads: $250 K

WEB

Commercial: $250 KBanner Display: $250 K

RETAIL DISPLAY

Production & Location: $250 - $500 K

24

ANALYSIS 25SOCIAL MEDIA

Instagram: • Instagram saw the most positive feedback and most feedback in

general.• Users that received shout outs were often responsive and acted as

influentials, directing more traffic to our page.• Instagram was most successful aspect of campaign, as it enabled

us to engage with the most users and receive the most feedback.

YouTube:• Nearly 30,000 impressions and 900 views overall means a huge

audience is being exposed.• Only one YouTube comment likely means that consumers may be

confused about message.• Low view count may be due to commercial length.

Sources • http://www.theguardian.com/business/2012/feb/15/kellogg-bu

ys-pringles-procter-gamble• http://www.redbooks.com.www.libproxy.wvu.edu/advertiser/KE

LLOGG_COMPANY/• https://www.pringles.com/us/home.html• http://academic.mintel.com/display/652258/?highlight#hit1• http://ureporter.mriplusonline.com/selectdemofromsearch.asp• http://ureporter.mriplusonline.com/selectdemofromsearch.asp• http://www.redbooks.com.www.libproxy.wvu.edu/advertiser/PE

PSICO_INCORPORATED/