Marketing Plan

By: Mr. Sniffles

Summary of Data Provided

Pik-Nik is an all-American snack that has been in the market for over 70 years now.

It is the No. 1 Potato stick brand in the USA.

It is the No. 1 worldwide exporter of Potato sticks.

Pik-Nik’s plant facilities are in San Jose, California

United States Canada

Philippines Iceland

Korea Latvia

Taiwan Aruba

Thailand Curacao

Malaysia Bonaire

Singapore Costa Rica

India Kuwait

China Saudi Arabia

Snack Foods Category

◦ Industry

Potato based, Corn based, Flour based

◦ Sub-category:

All Natural, Extruded , Processed

Pik-Nik

◦ all natural potato snacks, made using only fresh potatoes, pure vegetable oil and other seasonings.

◦ 100% no preservatives

Young & trendy 18 to 25 years old

Gregarious

Fun loving

Adventurous

Independent & dynamic

Eating “on the move”

Snacking for fun

Goal: For Pik-Nik to be the No. 1 in the Imported Snack market in the Philippines.

Problem: How can we make Pik-Nik the top of mind choice for consumers in its target market without changing its product offering? ◦ Low control over product since internationally

sourced

Pik-Nik has almost no online presence, and no online assets, and is obviously missing out on this opportunity.

A great number of the individuals that Pik-Nik is targeting can easily be reached through this untapped medium.

Pik-Nik is the only one who can position itself as a healthy snack

The competition of Pik-Nik all have an online presence, with Frito Lay having the most online presence and assets, and Oishi having the least.

Except for Oishi, the imported snacks market do not have a locally targeted online campaign.

The competition for flavor innovation is fierce

Since Pik-Nik has been getting double digit growth rates for its sales, consumers are switching to Pik-Nik as compared to other snacks. (Global Growth rate 5%)

Almost all sales made for the snack food industry are still in supermarkets, convenience stores, and other independent retailers.

Pik-Nik

Pringles

Frito-Lay

Oishi

Pik-Nik ◦ Has an International Website

No engagement

Not updated

◦ No local Website

◦ No Official Facebook Page

◦ Has an inactive fan-generated Facebook Page (3,345 fans)

Pik-Nik ◦ No Official International or Local Twitter Page

◦ No Youtube Channel

◦ No Forums talking about Pik-Nik

◦ Low SEO score in Google Search

Keywords: “Piknik; Pik-Nik”

◦ Good local feedback thru social media (Facebook & Twitter)

Pringles ◦ Has an active international Website and Microsite

Good promotional activities

User-Friendly Site ◦ Has 17,600,627 (As of Feb. 8, 2012) fans in its Official

International Facebook Page ◦ Has a number of ACTIVE unofficial international Fan

Pages (Total fans amount to approximately 2 million) ◦ Has 5,565 followers in its active international Twitter

account ◦ Great Score in SEO Google Search Keyword “Pringles”

◦ Inactive International Youtube Channel (370 Subscribers)

Pringles ◦ No local website

◦ No local official Facebook page

◦ No local fan-generated Facebook page

◦ No local Twitter

◦ Great Positive Feedback from Social Media locally and internationally.

Frito Lay ◦ Has active international Websites for many brands

Cheetos, Lays, Doritos, Tostitos, etc.

◦ Has 17,600,627 (As of Feb. 8, 2012) fans in its Official International Facebook Page

◦ Has a number of ACTIVE unofficial international Fan Pages (Total fans amount to approximately 2 million)

◦ Has 5,565 followers in its active international Twitter account

◦ Great Score in SEO Google Search

Keyword: “Pringles”

◦ Inactive International Youtube Channel (370 Subscribers)

Frito Lay ◦ No local website

◦ No local official Facebook page

◦ No local Twitter

◦ Great Positive Feedback from Social Media locally and internationally.

Oishi ◦ Has a local website

◦ Has an active local Facebook fan page

◦ Has no Twitter account

◦ Has moderate Social Media Presence

◦ Has an international youtube channel

◦ Has low SEO rankings in google

Keywords: “Oishi”

There is a big opportunity for Pik-Nik to grab market shares through the internet since local direct competitors of Pik-Nik have not yet started using online mediums to reach their target market.

Pringles might have a different approach now since it has been divested by P&G to Diamond Foods.

Only Frito Lay has had a successful viral campaign, but it was international.

30 respondents via Google Docs online survey

Aged 17-27 respondents from various

backgrounds and occupations

13 male respondents, 17 female respondents

URL: http://bit.ly/Ae98tJ

Who buys snacks in your place MOST OFTEN?

Where do you buy your snacks the most?

How often do you eat snacks?

What are your top three choices of snacks to buy [in order of preference]? (Brand Names)

Why do you buy snacks? (Score with 1 as lowest and 5 as highest, scores can be repeated) ◦ Tastiness ◦ Low Price ◦ Brand Name ◦ Uniqueness (It is one of a kind)

◦ Health Benefits] ◦ For a specific occasion (Party, etc.) ◦ Easy to bring around (Pocket size)

How often does "Person who buys your snacks" purchase snacks?

What is your personal reason for buying/eating snacks? Explain if needed.

Where do you buy your snacks the most?

(Multiple Choice) ◦ Top three are Supermarkets, Convenience Stores, and

Wholesale Stores (S&R, ShopWise, etc.)

0

5

10

15

20

25

30

Supermarket Conv Wholesale Canteen Specialty Store Sari-Sari

What are your top three choices of snacks to buy?

(Brand Names) ◦ Top three most chosen are Jack&Jill Products, Frito Lay

Products, and other indirect competitors (Fruits,

Chocolates, etc.)

Who buys snacks in

your place MOST

OFTEN? (Multiple

Choice) ◦ Many of the respondents

buy snacks themselves

(12 parents, 18

themselves)

Sales

Themselves

Parents

Why do you buy snacks? (Score with 1 as lowest and 5 as highest,

scores can be repeated)

What is your personal reason for buying/eating

snacks? Explain if needed. ◦ Common Responses (Most common to least common)

Comfort food, Stress Relief, Break/reward in between

heavy/long tasks, To pass time/keep occupied

To pass hunger, Meal Replacement, Energy Boost

Convenience, To save time (Instead of a full meal), On-the-

go comfort food

Taste, Many Flavors

A great factor for consideration in buying junk food is taste, followed by price.

There is a great number who eat junk food as “comfort food” instead of just as a snack.

No specific emotional or occasional association with Pik-Nik

Cannot be considered “real comfort food” by its consumers ◦ Chocolates, Ice cream, and cakes; ◦ Frito Lay products is the most associated “comfort

food” among the imported snacks industry.

Most recognizable (and favorite) Flavor for Pik-Nik is its Ketchup Fries

Not really seen as a healthier potato chip snack

Wouldn’t buy Pik-Nik deliberately, but would eat it if it was there already.

Usually bought if “nagsawa” from other imported snack foods.

Pik-Nik’s packaging is large and is difficult to squeeze into one’s bag and consider it junky

Many people are annoyed with the lid of the small Pik-Nik since it is not an effective resealer.

Users of the internet have a skewed demographic towards the younger (below 30) generation

The Philippines’s online market has a 50% penetration rate (approximately) ◦ Pik-Nik’s target market (B and C SEC) consists of

approximately 40% of the Philippine population

90% of internet users are on Facebook Flash Game Development Costs are at around

7,000Php – 50,000Php depending on complexity

Place ◦ California Manufacturing Plant

◦ Local Distributor

◦ Traditional Modern Trade Channels (Malls, Dept. Stores, etc.)

◦ Some General Trade channels (School cafeterias)

Premium Price due to its being an imported Snack ◦ Similar pricing with Frito Lay and Pringles, but more

expensive than Oishi and other local snacks.

Doritos @ 40Php

Lays @ 80Php

Pik-Nik (M) @ 80Php

Pringles @ 97Php

Oishi Potato Fried @ 15Php

Oishi Kirei @ 21 Php

Jack&Jill Piattos @ 32Php

Pik-Nik (S) @ 35Php

All natural potato snacks ◦ Made from fresh potatoes, pure vegetable oil and other seasonings

◦ 100% no preservatives ◦ Ensures crisp, crunchy texture and a superb fresh fried potato taste.

◦ Packed in re-sealable, foil-lined, “stay fresh” canisters to retain freshness

Two years shelf life. Single Serve size is child safe with no metal rings or sharp metal edge on lid

Every medium and large size container comes with a reusable, plastic lid

Unflavored ◦ Original Shoestrings

◦ 50% Less Salt Shoestrings

◦ Fabulous Fries

Flavored ◦ Ketchup Fries

◦ Cheddar Cheese Shoestrings

◦ Honey Mustard Shoestrings

◦ Hot! Shoestrings

SMALL

1.5 oz (42 grams) - 1.75oz. (50 grams)

MEDIUM

3.75 oz ( 106 grams) – 4 oz. (113 grams)

LARGE

8.5 oz (241 grams)- 9oz (255 grams)

Sampling and Selling programs Events Sponsorships

Dispenser Programs - (Cinema Snack Bars)

On-Premise Activation Programs

Recipes on the website

Holiday/ Hamper programs

Cable TV exposure

No differentiating factor

No innovative factor except for “Pik-Nik recipes”

Inadequate efforts to sustain good business OR obtain goal of becoming number 1.

Pik-Nik has only a few “hit” flavors, and is not as aggressive with their flavor innovation as compared to other companies.

Pik-Nik needs to develop new strengths to be able to obtain more shares from its competitors

The consumers of junk food are of various ages.

Pik-Nik chose to market to those aged 18-25. The

characteristics I have obtained from my research

survey has shown that: ◦ they are mostly going through an emotional roller coaster

at this point in their lives

◦ do not value “healthy eating” as much as other age

groups

Said individuals are in the “twilight zone” of being

the wild and care-free teenager, and a responsible

adult. It is in these moments that these individuals

make the first most important choices for their

lives.

It is in these delicate moments that we need our

friends the most for support, but only real friends

stick with you thru good times and the bad. ◦ Ex: high-schoolers choosing/entering college, college

students choosing their first job, couples checking where

they are headed towards, etc.

Communicating “Healthy” is problematic for Pik-Nik since it is still considered a “junk food” and there is little value added to it being from all natural potatoes and 100% no preservatives.

Other brands have an emotional connection with the product ◦ Frito Lay=Comfort Food

The Philippine environment’s online market is growing steadily, with its current penetration level at 50% of the population. This new channel is a good, cheap, and effective way to reach Pik-Nik’s target consumers.

“These periods of uncertainty in my young adult life are moments that will define me, and I want to know that I am making the right choices. This is the moment I need the most help, and it is only true friends that will stay with me through good times and the bad, and actually be able to give me good advise to push me in the right direction.”

Since most snacks are very unhealthy, they are not able to position themselves like Pik-Nik.

Using the healthy and all-natural asset of the Pik-Nik brand will be the factor that makes Pik-Nik “The friend that won’t lead you astray”

Young, emotionally “high”, teenagers, and Yuppies transitioning to the adult life (Aged 16-27)

Fun loving and yet care for the consequences of their actions to their future

Those individuals who are in the middle of their “soul-searching” through the choices they are about to make.

To have at least 20,000 fans by the end of the year on Pik-Nik’s new facebook fan page. ◦ Based off of other local fan pages with approx.

20,000 fans in approx. 2-3 years.

To have associated the positioning of Pik-Nik as the “Friend you can count on” beyond the promotional activity.

To have increased Pik-Nik’s market share

Produce a flash game to be posted online (Facebook Fan Page), with an online scoring system and public leaderboards. ◦ Tetris, with tiles as Pik-Nik strips ◦ Weekly Winners obtain a 100Php Pik-Nik Gift

Certificate

Utilize PPC and Word of Mouth to drive traffic to the Facebook site

Have a photo uploading competition where users “nominate” someone who needs a friend, and a little cheering up

The Facebook Fan Page ◦ Daily topic to engage consumers

◦ Informs consumers of Pik-Nik promotions and events

◦ Increase awareness and positioning of the brand

Estimated Cost ◦ Customized Pictures (5,000Php)

◦ Pay Per Click Ads (200,000Php for 4 months)

Weekly campaign (4 months) ◦ Pik-Tris (Pik-Nik Tetris)

Posted online as a Facebook App

Score based on Time

How fast can you “consume” 50 tetris lines

Scores reset every week

Prize of 100Php (Pik-Nik Gift Certificate) goes to the top 10 players for the week

◦ Estimated Cost

Game Development (10,000-25,000Php)

Gift Certificates (12,000Php)

Main campaign (From Month 3 to Month 8) ◦ Online Contest

Share your story: If your friend has a problem, and you believe that he needs a Pik-Nik friend to cheer him up, post your story online, and get a chance to win 100,000Php and a special prize to help your friend in his/her current problem!

Photo and story-writing contest

Part of judging criteria are:

Number of Facebook Likes (Minimum of 50)

Pik-Nik Merchandise bought (Minimum of 20)

5 winners

Estimated Costs ◦ Prizes (700,000-1,000,000Php)

Main campaign Promotions - ATL (TV Ads) ◦ 30sec short video ad to be uploaded in Youtube

◦ Advertise the online site and the contest ◦ Showcase the message “Walang iwanan!” Show how good friends stick out for each other

Show how eating Pik-Nik will not lead to bad consequences (Healthy)

◦ Studio 23, TV 5

Estimated Cost ◦ Production (200,000Php) ◦ TV ad placement(2 million Php for2 months)

Main campaign Promotions - ATL (Print Ads) ◦ Advertise the online site and the contest

◦ Cosmopolitan, Men’s Health, Women’s Health

Estimated Cost ◦ Production (50,000Php)

◦ Print placement(300,000Php for 2 month ads)

Main campaign Post event ◦ Video ads of the winners and their prizes

To be posted on Youtube Only

The story and how Pik-Nik helped them

◦ Attempt to create buzz via viral marketing

◦ Estimated Cost

Production (100,000-200,000Php)

Establish an emotional connection with the consumers

Establish Pik-Nik’s online presence and be able to connect with the consumers more.

Drive sales up and become number one in the premium imported snack foods market.