Project 5Project 5

JOMC 172 • Spring 2005JOMC 172 • Spring 2005

Sun-MaidSun-Maid®® International International The #1 Brand of The #1 Brand of Raisins WorldwideRaisins Worldwide Consistently unsurpassed superior quality.Consistently unsurpassed superior quality. The Global Leader In: The Global Leader In:

Market Share Market Share Distribution Distribution Volume Volume Consumer Recognition Consumer Recognition Consumer Confidence Consumer Confidence

Exported to more than 50 countries around the world.Exported to more than 50 countries around the world. Industry leader in environmentally-friendly packaging innovations Industry leader in environmentally-friendly packaging innovations

with a wide variety of package sizes and languages. with a wide variety of package sizes and languages. Strong network of brokers and distributors to meet customer needs Strong network of brokers and distributors to meet customer needs

quickly and professionally.quickly and professionally. Professional staffs of technical support and new product development Professional staffs of technical support and new product development

personnel.personnel.SOURCE:

SunMaid.com

America’s Favorite RaisinAmerica’s Favorite Raisin61% Share!61% Share!

#1 in Natural Raisins#1 in Natural Raisins

Six out of every Six out of every ten raisin packages ten raisin packages sold each day are sold each day are Sun-Maid raisins.Sun-Maid raisins.

SOURCE: IRI U.S. Food Markets 24 weeks ending April 20, 2004.

All Other12%

Total Private Label27%

Sun-Maid61%

Yogurt Raisins - 35% ShareYogurt Raisins - 35% Share Fastest growing segment of the raisin category.Fastest growing segment of the raisin category.

SOURCE: IRI U.S. Food Markets 24 weeks ending April 20, 2004.

Sun-Maid35%

All Other26%

Mariani24%

Del Monte15%

Dried FruitDried Fruit

Category Category leader with leader with 50% share.50% share.

Used as Used as snacks and snacks and in recipes.in recipes.

New products drive new customers to the New products drive new customers to the dried fruit section of supermarkets.dried fruit section of supermarkets.

Healthy Nutrition Healthy Nutrition for Children & Adultsfor Children & Adults

Percent Sales by MonthPercent Sales by Month(Sun-Maid brand - all products)(Sun-Maid brand - all products)

AugustAugust 6.86.8 FebruaryFebruary 6.46.4

SeptemberSeptember 11.611.6 MarchMarch 6.56.5

OctoberOctober 19.619.6 AprilApril 5.05.0

NovemberNovember 12.112.1 MayMay 2.62.6

DecemberDecember 13.513.5 JuneJune 1.71.7

JanuaryJanuary 12.512.5 JulyJuly 1.71.7

Seasonality IssuesSeasonality Issues Year-round sales as snack items and recipe ingredients.Year-round sales as snack items and recipe ingredients. Lower sales in summer months due to ready availability Lower sales in summer months due to ready availability

of fresh fruit.of fresh fruit. Aug-Sept sales are heavily snack related, particularly for Aug-Sept sales are heavily snack related, particularly for

children.children. October sales are particularly high for Mini-Snack October sales are particularly high for Mini-Snack

packages for Halloween.packages for Halloween. Nov-Jan sales reflect increased use for cooking as well as Nov-Jan sales reflect increased use for cooking as well as

snacks.snacks. Feb-May sales are heavily snack related for adults, Feb-May sales are heavily snack related for adults,

particularly those interested in healthier eating, dieting, particularly those interested in healthier eating, dieting, or active lifestyle.or active lifestyle.

Marketing Objectives Marketing Objectives 2005-20062005-2006Maintain market leadership in raisin and Maintain market leadership in raisin and

dried fruit categories:dried fruit categories:- Increase market share for raisins from - Increase market share for raisins from

61% to 65% nationally.61% to 65% nationally.- Increase market share for yogurt raisins - Increase market share for yogurt raisins

from 35% to 45% nationally.from 35% to 45% nationally.- Increase market share for dried fruit from - Increase market share for dried fruit from

50% to 53%.50% to 53%.

Marketing StrategiesMarketing Strategies2005-20062005-2006 Use an integrated communications and Use an integrated communications and

merchandising plan to increase market share by merchandising plan to increase market share by building brand awareness, driving trial and repeat building brand awareness, driving trial and repeat purchases throughout the year:purchases throughout the year:

- aggressive consumer sales promotions- aggressive consumer sales promotions- cents-off coupons & bonus packs- cents-off coupons & bonus packs- free recipes & recipe booklets- free recipes & recipe booklets

- award-winning national consumer advertising- award-winning national consumer advertising- Supporting promotions- Supporting promotions- During non-promotional periods as well- During non-promotional periods as well

- effective merchandising, including POS and - effective merchandising, including POS and display materialsdisplay materials

Advertising CreativeAdvertising Creative

““Natural Snack” theme targets multiple Natural Snack” theme targets multiple segmentssegments

- Mothers with children (Raisins, Yogurt - Mothers with children (Raisins, Yogurt Raisins).Raisins).

- Homemakers who cook, particularly for - Homemakers who cook, particularly for holidays (Golden Raisins, Cherries).holidays (Golden Raisins, Cherries).

- Fitness/Health/Nutrition-minded (Raisins, - Fitness/Health/Nutrition-minded (Raisins, Dried Fruit).Dried Fruit).

Recommended Promotional StrategyRecommended Promotional Strategy1-3 month promotional period1-3 month promotional period

Trade promotion of merchandising and POS Trade promotion of merchandising and POS materials for retailers before promotional period.materials for retailers before promotional period.

National distribution of coupons at beginning of National distribution of coupons at beginning of promotion.promotion.

National advertising support throughout National advertising support throughout promotional period.promotional period.

On-pack coupons to encourage second purchase.On-pack coupons to encourage second purchase. Recipes on packaging; on-line recipe booklet Recipes on packaging; on-line recipe booklet

offer.offer.

Your AssignmentYour Assignment Develop a U.S. consumer media plan consistent Develop a U.S. consumer media plan consistent

with achieving the marketing objectives of Sun-with achieving the marketing objectives of Sun-Maid.Maid.

- Time period: August 2005 - July 2006.- Time period: August 2005 - July 2006.- Budget: $7,300,000. (Includes purchase of - Budget: $7,300,000. (Includes purchase of

time/space for sales promotions as well as time/space for sales promotions as well as advertising.)advertising.)

- Deadline: noon, Tuesday, May 3 in Carroll Hall - Deadline: noon, Tuesday, May 3 in Carroll Hall room 233. LATE PROJECTS WILL NOT BE room 233. LATE PROJECTS WILL NOT BE ACCEPTED!ACCEPTED!

Special RequirementsSpecial RequirementsSales PromotionsSales Promotions

You may schedule a maximum of 4 promotional You may schedule a maximum of 4 promotional periods throughout the year.periods throughout the year.

A promotional period can last a minimum of 4 A promotional period can last a minimum of 4 weeks / maximum of 2 months. (You may have weeks / maximum of 2 months. (You may have one, but only one, promotional period of 3 months one, but only one, promotional period of 3 months if you wish.)if you wish.)

A maximum of 25% of the budget may be used to A maximum of 25% of the budget may be used to deliver coupons. (There is no media cost for on-deliver coupons. (There is no media cost for on-pack coupons.)pack coupons.)

Assume that trade promotional activities are a Assume that trade promotional activities are a separate budget item and will be coordinated with separate budget item and will be coordinated with your plan.your plan.

Additional RequirementsAdditional Requirements

Your presentation deck may have a Your presentation deck may have a maximummaximum of five pages, including the of five pages, including the cover page.cover page.

You You mustmust include a detailed flow chart. include a detailed flow chart.If you use magazines, you must specify If you use magazines, you must specify

vehicles (using costs from MRI+). For vehicles (using costs from MRI+). For other media, you do not need to specify other media, you do not need to specify vehicles.vehicles.

Research / Cost InformationResearch / Cost InformationMRIMRICPP (Use Project 4 National & Spot CPP (Use Project 4 National & Spot

Media Costs)Media Costs)FSI Cost/Distribution (Valassis) FSI Cost/Distribution (Valassis)

$7.00 CPM (full-page)$7.00 CPM (full-page) $5.25 CPM (1/2 page)$5.25 CPM (1/2 page) Up to 59% HH reachUp to 59% HH reach

Reach Tables (Use Project 4 National & Reach Tables (Use Project 4 National & Spot Media Reach Tables)Spot Media Reach Tables)

Honor CodeHonor CodeThis is a take-home, This is a take-home, individualindividual project. project.Honor code is in full effect.Honor code is in full effect.

It is a violation of the Honor CodeIt is a violation of the Honor Codeto discuss this projectto discuss this projectwith another student.with another student.

Questions about the project should be Questions about the project should be addressed to the instructor via email.addressed to the instructor via email.