JIF

Choosy Moms Choose. . .

Consumer Segmentation and Market Analysis


I. Market Situation Analysis

Christine Schneider


History of Peanut Butter

1890

1903

1920

1923

1950

Anonymous St. Louis Doctor

developed peanut

“butter” for his patients

Ambrose Straub

patented a machine to

make peanut butter

Joesph Rosefield found the

proper combination of stabilizers

and sugar was

discovered

Rosefield prevented oil separation

Food and Drug Administration put regulation

on “Peanut Butter”


History of Company

1955

1958

1960

1972

2002

P&G purchased the W.T. Young Company

Jif was introduced by

P&G P&G launched “Choosy Moms

Chose Jif”

Kids raised on Jif

preferred a more

sophisticated taste

The J.M. Smucker Company

acquired Jif


Jif Peanut Butter Line

Creamy

To Go

Simply Creamy

Crunchy

Honey

Reduced Fat


Direct CompetitorsRosefield’s own brand of peanut butter

Trademark for peanut butter

Unilever Foods currently owns this brand

Rosefield licensed his invention to the Pond CompanyThe Pond Company created Peter Pan

ConAgra Foods currently owns this brand

The J.M. Smucker Company created organic to reach other target markets

Offers an unprocessed peanut taste


Indirect Competitors


I. Industry Sales, Current Newsworthy Items, Industry

ForecastSean Fitzgerald


Sweet Spreads Industry Break Down

50%38%

12%

0%

20%

40%

60%

80%

100%

Peanut and other nutbutters

Jellies, Jams andPreserves

Honey

Product

Ma

rke

t S

ha

re (

%)


Company Breakdown of Sweet Spread Industry

Company Market Share (%)

37% 23% 10% 6% 5% 19%

0%20%40%60%80%

100%

J.M.Smucker's

PrivateLabel

UnileverBestfoods

NorthAmerica

ConAgraInc.

WelchFoods Inc.

Other

Company

Mar

ket

Sh

are


Peanut Butter Industry

Peanut Butter Market Share by Company

40%21% 18% 13%

2% 6%

0%20%40%60%80%

100%

J.M.Smucker's

UnileverBestfoods

NorthAmerica

PrivateLabel

ConAgraInc.

Ferrero USAInc.

Other

Company

Ma

rke

t S

ha

re


Current Newsworthy Items

• “Win $25,000 College Scholarship Fund in Jif Peanut Butter Sandwich Contest”

• ConAgra Foods Inc. issues massive recall– Maker of Peter Pan peanut butter


Current Newsworthy Items

• Smucker’s enjoys tremendous fourth quarter growth– Attributed largely to Jif sales

• “NC County to Eliminate Peanut Products from Schools” – Peanut allergy concerns


Industry ForecastSweet Spreads

2007 Projected Industry Sales

877

653

207

851

634

201

0

200

400

600

800

1000

Peanut and other nutbutters

Jellies, Jams, andpreserves

Honey

Product

Sa

les

(m

illio

ns

of

$)

2006 Sales

2007 Sales Projections


Peanut Butter IndustrySales Projections

339

174 154108

1654

331

170 150105

1653

0

100

200

300

400

J.M.Smucker's

UnileverBestfoods

NorthAmerica

PrivateLabel

ConAgraInc.

FerreroUSA Inc.

Other

Company

Sal

es (

mill

ion

s o

f $)

2006 Sales

2007 Sales Projection


II. Consumer Market Segmentation

Kevin Mosher


Grade School Greta and Gary Jr.Grade School Greta and Gary Jr.


Grade School Greta and Gary Jr.Grade School Greta and Gary Jr.• Work: Chores around the house; paper route• Hobbies: Comic Books, pet turtle, video

games, Boy/Girl Scouts• Club membership: Boy or girl Scouts• Media: Reads comic books and watches TV

daily, mostly cartoons and sitcoms• Themselves: Just a kid that wants to have

fun and hang out with friends


Grade School Greta and Gary Jr.Grade School Greta and Gary Jr.• Age: 6-13• Personal Income: Under $10,000• Social Class: Lower-Middle; Middle-Middle;

Upper-Middle• Shopper Type: Just wants the peanut butter

that tastes best• Frequency of Use: Heavy• Benefits Sought: Wants great taste and variety.

Wants it on their sandwich.• Involvement: Medium


College Carl and CarolCollege Carl and Carol


College Carl and CarolCollege Carl and Carol• Themselves: Are pretty comfortable with themselves

and know what brands they like and do not like• Media: Internet, TV, popular magazines, school

newspaper• Work: Possible full-time job or part-time job in

between classes, full-time student• Hobbies: Parties, hanging out with friends, music,

intramural sports, collegiate sporting events, movies, concerts

• Club membership: Fraternity/sorority, service groups, academic clubs


College Carl and CarolCollege Carl and Carol

• Age:18-26

• Sex: Male; Female

• Frequency of Use: Heavy; Medium; Light

• Benefits Sought: Taste, fulfillment, quality

• Involvement: High


Start Up SteveStart Up Steve


Start Up SteveStart Up Steve• Themselves: Does not want to be viewed as a

failure in society• Products: Focuses on necessary items and specialty

items for sport• Family: Single, may have a young child from

previous relationship, enjoys extended family• Work: Works at the local factory• Hobbies: Camping, fishing, bingo, poker night, TV,

Fraternal Order of the Elk


Start Up SteveStart Up Steve• Age:28-45• Family Life Cycle: Single• Personal Income:$30,000-50,000• Social Class: Upper-Lower; Lower-Middle;

Middle-Middle• Frequency of Use: Medium• Brand Loyalty: Strong, Spurious• Benefits Sought: Wants something that tastes

good and is easy to make for him and his son.• Involvement: Low


Choosy Mom ChelseaChoosy Mom Chelsea



• Family: Very involved with her family, works hard to keep them happy

• Work: Stay at home mom• Hobbies: Working out, cooking, reading, soccer

practice, PTA meetings, Oprah, scout leader, book club, swimming, walking

• Themselves: Trying to be the best mom possible, wants to be a role model for her kids

• Products: Concerned mainly with food and cleaning supplies


Choosy Mom ChelseaChoosy Mom Chelsea• Age:30-50• Sex: Female• Family size:3+• Family Life Cycle: Full Nest I; Full Nest II• Personal Income: Under $10,000• Social Class: Middle-Middle to Lower-Upper• Frequency of Use: Medium• Brand Loyalty: Strong, Genuine• Benefits Sought: Convenient for kids lunches, quality • Involvement: Low


Retired Rick and RitaRetired Rick and Rita


Retired Rick and RitaRetired Rick and Rita• Work: Retired accountant and school teacher• Hobbies: Reading, Card playing, knitting, card

clubs, country club, television (sports)• Family: Several grown children with grand-

children• Home: Small condo or family house with spouse• Media: Newspaper, television and radio• Themselves: Somewhat self concerned,

interested in family• Products: Stick with what they know


Retired Rick and RitaRetired Rick and Rita• Age:65 and over• Family size:1-2• Family Life Cycle: Empty Nest III; the Retired Solitary

Survivor• Personal Income:$20,000-$80,000 (typically fixed)• Social Class: Lower-Middle to Middle-Upper• Frequency of Use: Medium; Light• Brand Loyalty : Medium, Genuine• Benefits Sought: Health, familiarity, ease of

consumption• Involvement: Low; Non-Involvement


III. Psychographic Segmentation, Prizm Cluster Profiles & Target

Market DiscoveryLindsey Noth


Actualizers

Self-Confident.Enjoy the “finer things.”Receptive to

new products and technologies. Skeptical of

advertising. Frequent readers of a wide variety of

magazines.

Fufilleds

Value knowledge. Little interest in image or prestige. Like educational and public affairs programming. Read

widely and often.

Achievers

Image-conscious. Relatively affluent. Attracted to

premium products. Average TV watchers.

Experiencers

Action-oriented. Follow fashion and fads. Spend

much of disposable income on socializing. Buy on impulse. Listen

to rock music.

Grade School Greta & Grade School Greta & Gary Jr.Gary Jr.

College Carl & CarolCollege Carl & Carol

Start-Up SteveStart-Up Steve


Retired Rick & RitaRetired Rick & Rita

High Resources

Principle Oriented Status Oriented Action Oriented

VALS 2™ NETWORK LIFE STYLE (PSYCHOGRAPHIC) SEGMENTATION


Believers

Traditional. Family Oriented. Buy American. Slow to change habits.

Look for bargains. Watch TV more than average.

Strivers

Image-conscious. Limited discretionary incomes, but

carry credit balances. Spend on clothing and

personal-care products. Prefer TV to reading.

Makers

Self-sufficient, hands on. Shop for comfort,

durability, value. Unimpressed by

luxuries. Read auto, home mechanics, fishing magazines.

Strugglers

Restricted consumption. Concerned with security and safety. Brand loyal. Trust advertising. Watch

TV often.

Low Resources

Grade School Greta & Grade School Greta & Gary Jr.Gary Jr.


Start-Up SteveStart-Up Steve




Prizm Cluster ProfilesQuintile 1 Quintile 2 Quintile 3 Quintile 4 Quintile 5

Blue Blood Estates God's Country The Cosmopolitans Simple Pleasures Young & Rustic

Winners Circle Suburban Sprawl Middleburg Managers Domestic Duos Mobility Blues

Urban Coast Mayberry-ville Traditional Times Close-in Couples Crossroads Villagers

Country Squires Young Digerati Young Influentials Sunset City Blues Family thrifts

Money & Brains Bohemian Mix Greenbelt Sport Heartlanders Bedrock America

Upper Crust Upward Bound Up-and-Comers Shotguns & Pickups Big City Blues

Big Fish, Small Pond Beltway Boomers Urban Achievers Suburban Pioneers Low-Rise Living

Movers and Shakers Kids & Cul-de-Sacs Boomtown Singles Multi-Culti Mosaic Golden Ponds

Second City Elite Fast-Track Families New Homesteaders Old glories Old Milltowns

Executive Suites American Dreams Big Sky Families American Classics Back Country Folks

Brite Lites, Little City New Empty Nests White Picket Fences Red, White & Blues Urban Elders

Home Sweet City Pools & Patios Blue-chip Blues New Beginnings Park Bench Seniors

Gray Power Kid Country USA Blue Highways City Roots

City Startups Hometown Retired


Blue-Chip BluesBlue-Chip Blues

• Mainstream Families• Middleburbs• Mid-Scale Younger Families• Suburban Homeowners• White collar, Blue collar, Services• High School• Visited a theme park, own a video

game system, Ford Focus


Young InfluencialsYoung Influencials

• Young Achievers• Middleburbs• Midscale Younger Singles• Suburban Renters• <35• White Collar, Mix• High School/college• Buy high end computers, buy rap music, GQ

Magazine, King of the Hill, Mazda 3


New BeginningsNew Beginnings

• Striving Singles• Inner Suburbs• Lower/Mid younger Mix• Suburbs• <35• White Collar, Blue Collar, Service• High School• Play games on the internet, read Star

Magazine, WWE, Jerry Springer TV, Kia Spectra


Fast-Track FamiliesFast-Track Families

• Young Accumulators• Landed Gentry• Upper-Mid Middle Age Families• Town Homeowners• 25-54• Professional, White Collar• High School/College• Own a Power Boat, belong to book clubs,

Country Living Magazine, Disney Channel, GMC Yukon


Gray PowerGray Power

• Conservative Classics• Middleburbs• Midscale Mature Singles/Couples• Suburban Homeowners• 65+• Professional, White Collar• High School/College• Go to museums, own a weekend home,

watch Live with Regis and Kelly, Mercury Sable


JIF

Skippy

Smucker’sPeter Pan

Product Positioning Map Quality High

Quality Low

Variety

Low

Variety

High


Consumer Benefit Segmentation

Popular Peanut Butter Spread Benefits Offered by Brand

Brand Taste Quality Price Health Benefits Variety

Jif 2 1 2 3 1

Skippy 1 2 3 2 2

Peter Pan 3 4 1 4 4

Smucker's 4 3 4 1 3


Consumer Benefit SegmentationPopular Peanut Butter Spreads Benefits Sought by

Market Segment

Market Segment Taste Quality PriceHealth

Benefits Variety

Grade School Greta & Gary Jr 1 3 5 4 2

College Carl & Carol 2 3 1 4 5

Start Up Steve 2 3 1 5 4

Choosy Mom Chelsea 2 1 5 3 4

Retired Rick & Rita 3 1 4 2 5


Target Market Discovery Grid

Benefits Sought by Target Market

Market Segment Taste Quality PriceHealth

Benefits Variety

Jif 2 1 2 3 1

Choosy Mom Chelsea 2 1 5 3 4


IV. Market Benefits and Market Size and Sales Potential

Benjamin Morgridge


The Benefit Chain Popular Peanut Butter Spreads

Choosy Mom ChelseaThe

ProductFunctional

BenefitPractical Benefit

Emotional Payoff

A good tasting food that I buy for my family

A high quality peanut butter I ate as a child; so I feel safe

giving my children

People will know I go all out for my family and

provide them the best quality

products

Buying Jif will enhance my self esteem and confirm

my belief that I am a good

mother


Market Segment Overlap Popular Peanut Butter Spreads

College Carl and

Carol

Grade School Greta

and Gary Jr.

Choosy Mom Chelsea

Start Up Steve

Retired Rick and

Rita


Peanut Butter Benefit Segmentation

Principle BenefitSought

Special Behavioral Characteristics

Life’sMotto

Life Style Characteristics

Great Taste

Expects a PB & J Sandwich in their school lunch

Active

“Life’s a garden, dig it.”

Grade School Greta & Gary Jr.Grade School Greta & Gary Jr.





Life’sMotto

PersonalityCharacteristics

Inexpensive

Wants a quick snack when there is not much time to cook

High Sociability

“Work hard, play hard.”






Life’sMotto


Inexpensive

Makes quick meals that the child will love

High Autonomy

“When life gives you lemons, make lemonade.”

Start Up SteveStart Up Steve





Life’sMotto


Enjoys the traditional peanut butter they had growing up

High Quality

Content

“Live each day like it’s your last”





DemographicStrengths


BrandsDisproportionately

Favored


Life Style Characteristics

Life’sMotto

Quality

Mothers, Families

Medium User

Jif, Skippy, Smucker’s

Family Oriented

Value-oriented

“Family first.”



Total Market (ages 18-80): 68,576,480 people

Size of each market segment for peanut butter:

Choosy Mom Chelsea Choosy Mom Chelsea 31%31%College Carl & Carol College Carl & Carol 17%17%Start Up SteveStart Up Steve 25%25%Retired Rick & Rita Retired Rick & Rita 27%27%

TOTAL 100%

Market Size and Sales Potential


Target Market: “Choosy Mom ChelseaChoosy Mom Chelsea” = 21,463,566 Brand: Jif Peanut Butter Non-Users: 15% = 3,219,535 Non-users of peanut butter

Heavy Users: 10% = 5,365,892

.30533 Jif Market Share (30.533%)x 1,663,426 Heavy User Totalx 42 Ounces consumed per monthx $.109 Price per ouncex 12 Months per year$91,381,970.74 Dollar sales per year



Medium Users: 49% = 8,585,426

.30533 Jif Market Share (30.533%)x 2,661,482 Medium User Totalx 24 Ounces consumed per monthx $.109 Price per ouncex 12 Months per year$83,549,242.94 Dollar sales per year Light Users: 29% = 4,292,713

.30533 Jif Market Share (30.533%)x 1,330,741 Light User Totalx 10 Ounces consumed per monthx $.109 Price per ouncex 12 Months per year$17,406,092.28 Dollar sales per year



Heavy Users: $ 91,381,970.74Medium Users: 83,549,242.94Light Users: 17,406,092.28

TOTAL $192,337,305.96

Sales Potential for Choosy Mom Chelsea


V. Consumer Decision Process Model

Dan Schaefer


VI. Consumer Problems and Solutions

Mike Rieker


Problems

• Marketer Dominated Stimuli

• Motivation and Involvement

• Attention


Motivation and Involvement

• Chelsea does not have any sense of excitement in buying Jif:– Among list of many other things– Not independently sought out– Purchase is a chore


Marketer Dominated Stimuli

• Chelsea does not find any stimulus to buy Jif:– Makes peanut butter a non-researched

item– The same commercial style has run for

years


Attention

• Chelsea knows “Choosy Moms Choose Jif” but she doesn’t know why– Only recognizes need when she is out– Makes her decision at the store– Subject only to what is presented to her in

the aisle


Solution?


Marketer Dominated Stimuli• Jif-mo-bile – Bring to schools

– Pros• “Taste-of-Mouth” promotion from kids

– Cons• Costly, hard to implement, resistance from

school



• End Cap Displays- Pair Jif with a jelly and sliced bread on the end of store aisles.– Pros

• Chelsea makes her decision before she gets a look at other options, additional display space

– Cons• Slightly costly, promotion based on contracts

with other companies.



• Aggressive ad campaign-Show Chelsea something new– Pros

• Never done before in peanut industry, tell the country of Jif’s success, and that Chelsea is buying the best.

– Cons• Competitor of Jif is Smucker’s, large advertising

cost


• Disney on the jar– Pros

• Appeals to children, may be at the store

– Cons• Not for all of Chelsea’s children, plus costly to

pair with Disney

Motivation and Involvement

JIF

Documents

Transcript of JIF