AMERICAN MARKETING ASSOCIATION 2015 – 2016 COLLEGIATE CASE COMPETITION

   

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EXECUTIVE SUMMARY  This   report   provides   an   introspective   and   in-­‐depth   analysis   and  evaluation  of   Ice  Breakers   Cool   Blasts  Chews.  The  methodology  of  this  report  consisted  of  a  holistic  dissection  of  Cool  Blasts’  current  market  condition,  including  competitive  and  macro  situation  analysis.  A  product  review  and  multi-­‐channel,  four-­‐quarter   promotional   plan   was   composed   using   analyses   of   both   primary   and   secondary   research  findings.    Ice  Breakers  Cool  Blasts  Chews’  strengths,  weaknesses,  and  potential  market  influences  were  compiled  via  extensive  product  and  market  analysis,  highlighting  both  the  successes  and  potential  issues  that  have  occurred   in  the  market  since  the  April  2015  product   launch.  Primary  research  was  performed   in  three  distinct   methods   in   order   to   gain   a   holistic   consumer   perspective   about   the   Candy,   Mint,   and   Gum  (CMG)  market  and  to  delve  into  the  product’s  valuable  offerings  and  underperforming  traits.      Additionally,  this  report  details  the  ways  in  which  Ice  Breakers  Cool  Blasts  Chews  will  be  able  to  utilize  its  blue  ocean  position  and  unique  product  characteristics   to  become  a  permanent  market   influence  and  build   authentic   rapport   with   consumers.   Proven   to   be   a   polarizing   product,   Cool   Blasts   are   received  favorably  about  as  often  as  they  are  received  negatively.  The  product’s  early  struggles  include  customer  uncertainty  regarding  what  the  product  is  and  what  it  can  be  used  for.  This  uncertainty  is  partially  due  to  non-­‐descript,  vague  packaging  on  top  of  a  marketing  campaign  that   identifies  the  negative  qualities  of  gum  more  so  than  the  positive  qualities  of  its  own  product.      Targeting  young  millennials,  Ice  Breakers  Cool  Blasts  Chews  enjoy  only  a  24%  recognition  rate  among  the  18-­‐24  year  old  demographic.  Using  situational  research,  it  was  found  that  these  consumer  groups,  often  students  or  green  professionals,  are  constantly  on  the  go  and  extremely  conscious  of  their  oral  hygiene.  Cool  Blasts,  a  fast-­‐dissolving,  intense  breath-­‐freshener,  provides  value  to  these  millennials  who  are  living  fast-­‐paced,  social   lifestyles  filled  with  nearly  constant  face-­‐to-­‐face   interaction.  With  this  new  “fast  and  intense”  branding  strategy,  Cool  Blasts  can  be  easier  identified  as  a  go-­‐to  product  that  freshens  breath,  especially  when  there  is  no  time  for  traditional  gum  or  mints.      Ice  Breakers  aims  to  drive  product  recognition,  trial,  and  sales  growth  in  this  burgeoning  product.  With  a  total  marketing  expense  of  $7.5  million  and  sales  projections  north  of  $80  million  for  the  April  2016  –  March  2017  operating  year,  the  plan  below  effectively  answers  the  growth  needs  for   Ice  Breakers  Cool  Blasts  while  maintaining  a  marketing  budget  that   fits  within  the  Hershey  Company’s   lean-­‐yet-­‐effective  marketing   strategy.  By  employing  a   four-­‐quarter  promotion   strategy   involving  a  packaging   redesign,  a  digital  marketing   overhaul,   creative   product   solutions   in   the   everyday  world,   and   the   introduction   of  programs   for  Public  Relations   and  Corporate   Social  Responsibility,   Ice  Breakers  Cool  Blasts  Chews   can  ascend   heavy   market   competition   to   become   a   permanent   breath-­‐freshening   authority   in   the   CMG  space.                      

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TABLE OF CONTENTS  

EXECUTIVE  SUMMARY             1  TABLE  OF  CONTENTS               2  SITUATION  ANALYSIS               3     5C  ANALYSIS               3       Company             3       Customer             3       Competitor             4       Collaborator             6       Climate             6     S.W.O.T.  ANALYSIS             7       Strengths             7       Weaknesses             7       Opportunities             7       Threats             8  MARKET  RESEARCH               8     MAN  ON  THE  STREET  REVIEWS         8     SURVEY               9     FOCUS  GROUP               9  TARGET  MARKET               10     PRIMARY  MARKET             10     SECONDARY  MARKET             10     CONSUMER  PROFILES             10  POSITIONING                 11  MARKETING  STRATEGY               12     PRODUCT               12     PRICE                 12     PROMOTION               12     PLACE                   13  GOALS  AND  OBJECTIVES             14  INTEGRATED  MARKETING  COMMUNICATIONS  &  BUDGET       14     THEME                 14     ACTION  PLANS             14  MEASUREMENT  AND  EVALUATION           19  CONCLUSION                 20  WORK  CITED                 21  APPENDICES                 23    

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SITUATION ANALYSIS

5C  ANALYSIS  

Company  

The   Hershey   Company   is   the   leading   North   American   manufacturer   of   quality   chocolate   and   non-­‐chocolate  confectionary  and  chocolate-­‐related  grocery  products.  Hershey’s   is  also  a   leader   in   the  gum  and  mint  category  with  its  BREATH  SAVERS  and  Ice  Breakers  brands.  The  Ice  Breakers  brand  has  been  a  part  of  Hershey’s  gum  and  mint  Portfolio  since  2000.1  Ice  Breakers  are  known  to  be  a  part  of  a  fun-­‐loving  brand   that   provides   a   mouth-­‐freshening   lift,   each   Ice   Breakers   product   containing   their   signature  revitalizing  flavor  crystals.    Recent  news  developments  paint  an  optimistic  picture  for  Hershey’s  future.  Hershey’s  was  recognized  as  a  Top  10  company  and  place   to  work  by  millennials   in   the  Youth  100  VoxBurner  Report  and  the  2015  Millennial  Career  Survey  by  the  National  Society  of  High  School  Scholars  (NSHSS).  The  company  ranked  No.4   out   of   100   companies   and  No.1   in   the   “Grocery   and   Snacks”   category   in   the  VoxBurner  Report.  Hershey  also  ranked  No.20  out  of  the  “Top  200  Preferred  Companies”  in  2015  by  students  aged  19  to  25  across  the  nation.2  Globoforce,  a  leader  in  social  recognition,  named  Hershey  the  winner  of  its  Innovator  Award   to   recognize   the   effective   implementation   of   various   employee   and   consumer   recognition  initiatives,  such  as  the  Smile  Sampler,  and  Hershey’s  continual  incorporation  of  new  and  effective  ideas.3  Hershey’s   announced   that   its   Ice   Breakers   brand   is   now   available   with   Amazon   Dash   Button,   an  innovative   way   for   consumers   to   easily   re-­‐order   their   favorite   products.4   Ice   Breakers   is   currently  Hershey’s   second   best-­‐selling   brand   on   Amazon.   Analysts   seem   optimistic   about   the   addition   of   Ice  Breakers  Cool  Blasts  Chews  to  the  Ice  Breakers  product  family.  One  analyst  noted  that  its  success  could  mean  serious  problems  for  the  already-­‐declining  gum  industry.5      In  2012,  The  Hershey  Company  opened  a  new  production  facility  in  Hershey,  PA,  nicknamed  the  “world’s  most   technologically   advanced   chocolate  making   facility.”   The   facility   features   an   updated   IT   system,  new  high-­‐speed  production   lines,   and   a   real   time  diagnostics   system.   The  Hershey  Company  places   a  large   emphasis   on   logistics,   employee   facilities,   and   computer-­‐controlled  manufacturing   processes   in  order   to   reduce   costs   and   maximize   output.   The   nearly   110   year-­‐old   company   is   always   seeking   to  modernize  and  upgrade  their  global  supply  chain,  as  well  as  reduce  environmental  impact  as  part  of  its  “Project  Next  Century”  initiative.6    As  of  the  end  of  2014,  Hershey’s  Net  Sales  stood  at  $7.4  billion,  a  30%  increase  from  its  2010  sales.   In  addition  to  its  rollout  of  Ice  Breakers  Cool  Blasts,  The  Hershey  Company  expanded  its  offerings  in  many  of   its  other  product  lines  in  2014,   including  Brookside  Crunchy  Clusters,  Reese’s  Spreads,  Kit  Kat  White  Minis,  and  Hershey’s  Caramels.    Growth  in  2014  was  projected  between  5.5%  and  7.5%.7    

Customer  

As  sales  of  the  mint  and  gum  markets  stall,   the  desire  for  a  breath  freshening  product  that  stimulates  consumers  mentally  and  emotionally  is   increasing.  In  order  of  highest  importance  to  lowest,  reasoning  behind  purchasing  breath  freshening  products  are  hygiene,  convenience,  and  experience  related.    With  ages   18-­‐24   and   25-­‐34   being   the   majority   markets   consuming   gum   and   mints,   millennials   and   young  adults  currently  dominate  the  breath  freshening  market.    

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Consuming  healthy  and  natural  products  are  common   interests   shared  by   today’s  young  adults.  More  than   half   of   millennials   who   purchase   gum,   mints,   or   breath   fresheners   are   concerned   about   sugar,  artificial   ingredients,   and   too  many   ingredients.  Many   people   have   become   aware   that   Xylitol   is   very  poisonous  to  pets,  and  other   ingredients   in  gum  that  have  been  a  possible  suspect   linked  to  cancer  or  various  health  issues.  This  revelation  could  have  partially  contributed  to  the  decline  in  gum  sales.    

Competitor  

Though  Ice  Breakers  Cool  Blasts  Chews  claim  to  have  no  direct  competitors,  there  are  still  many  indirect  competitors  in  the  CMG  competitive  arena.  Outlined  below  are  the  top  competitors  in  both  the  gum  and  mint  spaces.    Trident  (Cadbury)  Trident  was  the  highest  selling  gum  brand  in  2013  with  $657.3  million.  Trident  focuses  on  the  health  and  dental-­‐conscious  working  professionals  segment  of  the  gum  market.  Trident  backs  up  its  claims  of  dental  health  with  an  approval   from  the  American  Dental  Association  (ADA).  Trident   is  also  sugar-­‐free,  which  aligns  with  its  positioning  as  a  healthier  gum  choice.  Trident’s  recent  ad  slogan  “Keep  your  co-­‐workers  close  and  your  Trident  closer”  reinforces  its  focus  on  the  business  professionals  segment.  Trident,  like  its  target   market,   is   beginning   to   embrace   new   social   media   trends   with   a   heightened   presence   on  Facebook  and  Twitter.  They  post  new  slogans  and  ads  though  their  social  media  to  connect  with  their  base   audience.   Trident   is   also   differentiating   itself   from   competitors   with   a   community   outreach  program.  During  the  week  of  September  20th-­‐26th  Trident  donated  5  cents  for  every  pack  purchased,  up  to  $250,000,  to  “Smiles  Across  America,”  an  oral-­‐disease  prevention  charity  for  uninsured  children.8        Orbit  (Wrigley)  Orbit  was  the  second  highest  selling  gum  brand   in  2013  with  $551.1  million   in  sales.  Orbit  has  a  more  focused   market   concentration   on   the   dental-­‐conscious   market   segment,   focusing   on   post-­‐meal   oral  health  with  its  original  product  line  and  teeth-­‐whitening  with  its  Orbit  White  product  line.  A  secondary  market   Orbit   also   focuses   on   is   the   busy  working   professionals.   Orbit   was   the   first   gum   brand   to   be  approved  by  the  ADA,  bolstering  its  position  as  a  better  choice  for  dental  health.  Orbit  is  also  a  “sugar-­‐free”   choice.   They   also   place   a   focus   on   chewing   Orbit   after   you   eat   to   “clean   your   teeth”   as   if   you  brushed.  This  position  puts  an  emphasis  on  the  busy  working  professional  who  does  not  have  a   lot  of  extra  time  or  location  available  to  brush  after  an  office  lunch.  Orbit  has  a  presence  in  the  social  media  market,  updating  their  profiles  multiple  times  per  week.  They  also  had  a  celebrity  sponsor,  Prince  Royce,  during  the  Video  Music  Awards.9    Extra  (Wrigley)  Extra   ended   2013   as   the   third-­‐highest   selling   gum  brand  with   $488.7  million   in   sales.    Extra   positions  itself  different  then  the  top  selling  gum  brands,  as  they  focus  on  the  experiential  side  of  chewing  gum,  boasting   its   longevity  as  well  as  promoting  off-­‐the-­‐wall   flavors  as   food  substitutes   for  diet  and  health-­‐conscious  consumers.  Extra  tries  to  position   itself   in  people’s  minds  as  a  replacement  for  a  snack,  and  often   reiterate   in   its   advertisements   the   sentiment   that   its   flavor   is   the  most   enduring.   They   further  reinforce  this  message  with  its  simple  slogan:  “Longer-­‐lasting  Gum.”  Extra  is  also  accepted  by  the  ADA,  though  it  is  not  focused  on  the  dental  conscious-­‐market  like  its  competitors.10        Life  Savers  (Wrigley)  Life  Savers  products  consist  of  gummies,  mints,  and  hard  candies.  Life  Savers  are  recognized  easily  by  its  iconic  life-­‐preserver  shape.  Mint  flavor  names  are  fashioned  in  their  brand’s  image:  Wint  O’  Green,  Pep  

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O’  Mint,  Spear  O’  Mint,  etc.  Each  hard  candy  is  packaged  either  in  a  small  clear  bag  within  a  large  count  share-­‐sized  bag,  individually  rolled,  or  in  a  car  holder-­‐sized  carrying  cup.      Featured   on   the   Life   Savers   website,   consumers   can   see   Life   Savers   “100   years   of   Sharing”.   This  marketing   includes   a   timeline   with   historical   writings   of   time   segments   ranging   from   1912   to  2012.    Lifesavers  mints  are  aiming  to  attract  the  25-­‐34  year  old  age  groups  with  this  ad  campaign.    Other  Life   Saver   advertisements   market   it's   flavored   candies,   rather   than   its   mint   products.    With   this,  Lifesavers  main  target  audience  is  11-­‐17  year  olds.    Within  the  sale  of  plain  mints,  Lifesavers  have  a  total  market  share  of  32.6%  in  2015.11        Mentos  (Perfetti  Van  Melle)  Beginning   in   Europe   under   the   corporation   now   called   Perfetti   Van  Melle,  Mentos   has   been   around  since  1950,  though  a  Mentos  sales  office  did  not  open  in  the  United  States  until  1975.  In  1990,  Mentos  released  its  ‘Freshmaker’  campaign  which  led  to  booming  sales.  Many  different  fruit  and  mint  flavors  are  available  such  as  Spearmint,  Strawberry,  and  Green  Apple   in   the  original  Mentos  mints.  The  company  now  also  sells  a  variety  of  gums  such  as  Fresh  Mint,  White  (with  teeth  whitening  properties),  and  Cotton  Candy.   Today,   Mentos   targets   15-­‐24   year   olds   who   identify   with   the   fresh,   hip   attitude   portrayed  through  online  digital  campaigns.   Its  new  campaign  slogan   is  “stay  fresh”  suggesting  users  stay  cool   in  uncomfortable   situations.  Mentos  has  performed  well  under  Perfetti  Van  Melle,  holding  29.3%  of   the  market  share  for  mints  in  2014.12    Listerine  Pocketpaks  Oral  Care  Strips  (Johnson  &  Johnson)    Packaged   in   a   convenient,   thumb-­‐sized   plastic   container,   Listerine   Pocketpaks   contain   thin   and  dissolvable  breath  strips.  Each  package  comes  with  24  breathstrips  and  is  featured  in  a  variety  of  mint  flavors.  Listerine  also  claims  that  its  breathstrips  kill  99%  of  bad  breath  germs.  Pocketpaks  are  found  in  the  oral  care  aisle  and  near  the  checkout  counter.    

Listerine  has  used  the  slogan  “No  bottle,  know  good  breath”  in  its  Pocketpaks  print  advertisements.  The  brand   makes   the   blue   strips   the   focal   point   while   adding   its   Pocketpaks   to   fill   up   what   looks   like   a  Listerine  Mouthwash  bottle.    

It  is  evident  that  Listerine  is  playing  off  of  its  other  mouth  care  products.  Not  only  do  the  Pocketpaks  not  have   its   own   website,   but   limited   information   is   noted   on   the   Listerine   website.   Among   different  varieties   of   breath   fresheners,   Listerine   Pocketpaks   sales   of   $47.1  million   are   only   around   one-­‐fourth  that   of   the   leading  mint   brand.    Listerine   is   currently   trying   to   appeal   to   the   younger   18-­‐24   year   old  demographic  while  not  excluding  the  25-­‐34  year  old  loyalists  who  regularly  consume  its  product.13    Tic  Tac  (Ferrero)  Tic  Tac  focuses  on  the  taste,  breath-­‐freshening  power,  and  healthiness  of  its  product.  Its  primary  target  is  business  professionals,  though  it  has  a  wide  variety  of  flavors  and  themed  packaging  that  can  appeal  to  different  ages  and  social  groups  as  well.  Tic  Tac  promises  fresh  breath  in   less  than  two  calories  and  with  no   sugar.   Tic   Tac  positions   itself   as   a  healthier,  quicker  alternative   to  mints.   The   clear  packaging  helps  indicate  the  flavor  by  letting  consumers  see  the  color  of  the  product.  Tic  Tac  advertisements  often  encourage   consumers   to   share   their   Tic   Tacs   with   others.   Tic   Tac   heavily   utilizes   slogans   and  advertisements  on  social  media  to  connect  with  its  target  market.14  

   

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Altoids  (Wrigley)  Altoids   are   a   product   of   the  Wrigley   Company.   The  Wrigley   Company   started   in   1780   and   served   a  medicinal  purpose  to  relieve  stomach  pains.  Originally,  Altoids  were  packaged  in  cardboard  boxes,  but  changed  to  the  metal  tins  in  the  1920s.  In  the  1920s,  the  brand  decided  to  go  with  the  “curiously  strong  mints”  campaign  to  further  intensify  the  claim  that  it  relieves  stomach  pain.  Known  as  “curiously  strong  mints,”  Altoids   rivals   Ice   Breakers   Cool   Blasts  with   the   intense   and   long   lasting   flavor   the  mints   emit.  However,  these  mints  take  a  while  to  dissolve.  There  are  a  variety  of  flavors  of  Altoids  mints  as  well  as  sugar-­‐free   options   and   different   packaging   for   convenience.   Altoids   has   a   strong   brand   image   which  makes  it  easily  identifiable.  Currently,  Altoids  Peppermint  is  the  number  one  mint  in  the  United  States.15  

Collaborator  

Currently,  Ice  Breakers  products  can  be  found  in  national  big  box  retailers  such  as  Target  and  Walmart,  convenience  stores,  supermarkets,  and  drug  stores.  Cool  Blasts  Chews  often  are  purchased  as   impulse  buys  at  checkout  from  these  various  retailers.  More  collaborations  should  be  done  with  these  stores  to  give  Cool  Blasts  Chews  prime  placement  in  planograms.  Distribution  sales  and  percentages  can  be  found  in  Appendix  A.    Hershey  generally  steers  away  from  hiring  celebrities  to  endorse  products,  and  this  same  pattern  should  be  continued  with  Ice  Breakers  Cool  Blasts  Chews.  Hiring  celebrities  would  not  be  an  effective  strategy  in  marketing   this  product  because  advertising  Cool  Blasts   should   focus  on   real   situations   that   the   target  market  consumers  would  encounter.      Recognizing  that  sampling  is  an  important  factor  of  the  success  of  Cool  Blasts,  the  campaigns  at  concerts  frequented   by   millennials   such   as   Nicki   Minaj,   5   Seconds   of   Summer,   and   Wiz   Khalifa   should   be  continued   and   extended   to  more   concerts.   Partnerships  with   sampling   at   college   bookstores   through  Amazon  student  ambassadors  should  also  be  continued.  

Climate  

Overall,  the  legal  climate  of  Ice  Breakers  Cool  Blasts  Chews  is  relatively  stable  at  the  moment.  The  only  legal  issues  that  the  Ice  Breakers  brand  is  challenged  with  is  a  class-­‐action  lawsuit  filed  against  Hershey  in   June   2015   for   using   misleading   packaging   for   Ice   Breakers   Ice   Cubes   Sugar-­‐Free   Gum,   claiming   it  contains   “nonfunctional   slack-­‐fill.”   The   lawsuit  named  eight  different   flavors  of   Ice  Breakers   Ice  Cubes  Gum   that   allegedly   violate   the   Federal   Food   Drug   &   Cosmetic   Act,   which   prohibits   businesses   from  misbranding  food.  The  plaintiffs  claim  in  the  lawsuit  “the  volume  of  the  products  contained…  ...makes  it  appear   as   if   (customers)   are   buying   more   than   what   is   actually   being   sold.”   The   dispute   about   the  product  is  that  it  makes  consumers  believe  they  are  buying  more  than  they  actually  are.16      The   ingredients   in  Cool  Blasts  may  concern  a  few  legalities.  Noncarcinogenic  carbohydrate  sweeteners  (sweeteners  that  have  been  found  not  to  cause  dental  cavities)  are  the  main  ingredients  listed  for  Cool  Blasts,  which  include  the  sugar  alcohols  xylitol,  mannitol,  and  maltitol.  According  to  the  Food  and  Drug  Administration,   these  sweeteners  are  allowed  to  replace  dietary  sugars.   If  Cool  Blasts  were  to  make  a  health  claim  about  how  these  sweeteners  do  not  promote  cavities  then  it  would  have  to  follow  specific  guidelines,   but   the   packaging   could   make   a   statement   such   as   “does   not   promote   tooth   decay.”17  Additionally,   because   the   product   contains   natural   and   artificial   flavors,   it   must   be   stated   in   a   place  where  “the  ordinary  person  would  read  it.”18    

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There   are   currently   no   regulations   in   place   that   require   food   packaging   to   include   choking   hazards,  although  some  companies  do  it  voluntarily.19  Lastly,  the  ingredient  xylitol  could  pose  future  legal  threats  to   the  company  as   it   is  produced  by  “hydrogenating”  xylose.  Hydrogenated  foods  are  known  to  cause  several  debilitating  disease  such  as  cancer.  According  to  VCA  Animal  Hospitals,  “xylitol  is  extremely  toxic  to  dogs.”20  Although  these  are  not  current  legal  issues,  future  legal  threats  should  be  noted.      The   “green   trend”  will   have   an   effect   with   regards   to   packaging   and   sourcing   ingredients.   In   today’s  economy,  being  efficient  is  a  premium  for  businesses  that  are  looking  to  cut  costs  and  excess  packaging  waste.  

S.W.O.T.  ANALYSIS  

Strengths    

Ice  Breakers  Cool  Blasts  utilize  an  innovative  blue  ocean  strategy  and  heavy  promotional  backing  to  aid  in  the  product’s  success.  Using  technology  that  allows  Cool  Blasts  to  dissolve,  Ice  Breakers  has  created  a  unique   product   category   -­‐   the   first   breath-­‐freshening   “chew.”   This   factor   accentuates   Cool   Blasts’  creativity   and   makes   the   product   stand   out   amongst   other   CMG   products.   The   technology   of   the  product  also  reinforces  its  usefulness.  The  dissolving  agents  allow  for  a  chew  that  does  not  need  to  be  thrown  out  after  use,  thus  decreasing  user  inconvenience.  Primary  research  found  the  product  is  useful  in  situations  where  there  is  a  necessity  for  quick  breath  freshening.  The  intensity  of  Cool  Blasts  and  its  variety   of   fresh-­‐tasting   mint   flavors   also   enhances   consumer   preference   for   the   product.   Lastly,   Ice  Breakers   brand   recognition   and   loyal   following   ensure   repeat   purchase   from   consumers.   The  distribution   and   sales   of   Ice  Breakers   parent   company,   The  Hershey  Company,   places  Cool  Blasts   in   a  wide  array  of  stores  across  the  United  States.    

Weaknesses  

With   a   new   product   like   Cool   Blasts,   there   can   be   both   hidden   and   obvious   weaknesses.   While   Ice  Breakers  are  commonly  known  for  their  high-­‐intensity  products,  Cool  Blasts  have  been  noted  to  cause  discomfort   due   to   its   strong  mint   flavor.   This   issue   arises   especially   after   the   consumer   drinks   a   cool  beverage  and  a  stinging  mint  sensation  continues   in   the  consumer’s  mouth.  Held   in  a   rectangular  box  with   a   sliding   drawer,   the   packaging   -­‐   while   more   streamlined   than   other   Ice   Breakers   products   -­‐   is  slightly  chunkier  compared  to  some  other  gum  and  mint  packages.  Consumers  who  purchase  an  entire  pack  over  trying  a  sample  pack  have  complained  about  the  tendency  of  the  product  to  shift  and  rattle  in  the  packaging.  The  pull-­‐out  tray,  though  sleek,  may  also  cause  an  issue  when  opened  the  wrong  way  as  the   chews   can   easily   fall   out   when   held   upside   down.   Since   Cool   Blasts   Chews   are   a   new   type   of  experience,   the   product   requires   explanation.   An   unclear   understanding   of   what   the   product   is   may  cause  possible  consumers  to  overlook  Cool  Blasts  and  continue  to  choose  other  gum  or  mint  products.    

Opportunities  

The   first   opportunity   is   given   in   the   competitive   landscape:   “Ice   Breakers   Cool   Blasts   Chews   face   no  competitors,”   at   least   in   a   direct   sense.   The  only   competitors   come   in   the   form  of   substitutions.   This  provides   an   opportunity   for   Cool   Blasts   Chews   to   claim   an   entire   new   position   and   segment   in  consumers’  minds.   Second,   the   target  market   of   young  millennials,   aged   18-­‐24,   are  more   concerned  than   other   segments   with   their   appearance   and   hygiene,   brushing   their   teeth   “four   times   daily   on  average”.   Breath   freshener   sales   are   expected   to   increase   more   than   25%   between   2015   and   2020.  Primary   research   found   consumers  would  use  Cool  Blasts  Chews  at   times  when   they   could  not  brush  their  teeth  due  to  inadequate  access  to  materials  or  time  to  do  so.  Lastly,  young  millennials,  as  well  as  

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the  secondary  market  -­‐  older  millennials  aged  25-­‐34,  are  emerging  or  established  young  professionals.  They  are  generally  single  or  dating,  and  they  are  in  college  or  have  recently  graduated.  This  means  they  are   constantly  meeting   new  people.  Whether   interviewing,   networking,   contributing   to   a  meeting,   or  going   on   a   date,   they   are   regularly   in   situations   that   limit   the   appropriateness   of   gum   chewing   or  “popping”  a  mint.  It  is  often  not  ideal  to  chew  gum  or  consume  mints  because  of  time  constraints,  and  additionally  for  gum,  the  issue  of  disposal.    

Threats  

Due   to   the   lack  of  direct  competitors,   consumers   struggle   to   identify,  quantify,  or   find  “jobs”   for  Cool  Blasts  Chews  as  a  product.  Consumers  tend  to  describe  the  product  as  a  mint  more  frequently  than  as  a  gum,  when   they   first   test   the  product.   Consumers  have  expressed   concern  over   the  possibility  of   the  packaging   sliding  open  or   being  opened  upside  down,   and   the  Chews   falling  out.   The  package  design  features  darker,  matte  tones,  which  is  a  departure  from  other   Ice  Breakers  products.  The  concern  over  the   darker   features   is   that   it   will   not   stand   out   on   a   crowded   shelf   that   heavily   relies   on   impulse  purchases,  and  it  may  not  be  easily  identifiable  with  other  Ice  Breakers  products.  The  packaging  is  more  streamlined,   but   this   just   follows   the   trend   of   many   gum   and   mint   products   next   to   Cool   Blasts   on  displays.  Cool  Blasts  are  not  easily  recognizable  as  an  Ice  Breakers  product,  especially  when  moved  away  from  the  rest  of  the  Ice  Breakers  product  line.  Lastly,  the  product  has  a  very  utilitarian  feel;  it  is  one  that  would  be  purchased  strictly  for  need,  not  typically  because  they  are  enjoyed.  This  could  make  it  difficult  to  encourage  trial  in  many  mint  and  gum  purchasers  due  to  the  fact  that  many  of  the  CMG  products  are  positioned  on  experience  and  enjoyment,  rather  than  usage.  Early  results  from  Cool  Blasts’  launch  have  shown   issues   among   some  consumers  with   texture  and  discomfort.   Though   there  are   as  many,   if   not  more,  positive  receptions  to  the  product  than  negative,  the  idea  of  the  product  may  be  more  attractive  than  its  implementation.  With  consumer  choice,  it  is  also  important  to  note  that  the  overall  CMG  market  sales   are  declining,   leading  a  new  product   like  Cool  Blasts   to  not   sell   as  well   as   it  would  have   in  past  years.    

MARKET RESEARCH

Multiple   methodologies   were   utilized   to   gather   topic-­‐relevant   data   and   information   about   how  consumers  interact  with  the  CMG  market,  Ice  Breakers  brand,  and  Ice  Breakers  Cool  Blasts  product.  Over  100  individual  spot  interviews,  dubbed  “Man  on  the  Street  Reviews,”  were  conducted  to  probe  the  mint  and  gum  habits  of  millennials  and  to  gather  their  initial  reactions  and  feedback  after  trying  a  sample  of  the  product.  A  survey  open  to  every  demographic  was  conducted  to  gather  brand  recognition  data  and  customers  attitudes   toward  mints,  gum,   Ice  Breakers  brand,  and  Cool  Blasts  Chews.  Finally,   two   focus  groups   were   conducted   with   panels   made   up   of   young   millennials   to   delve   into   the   strengths   and  weaknesses   of   the   Ice   Breakers   Cool   Blasts   Chews   product   and   uncover   possible   “jobs”   the   product  could  be  used  for.  Below  are  some  of  the  most  relevant  findings  from  the  data  collected.    

MAN  ON  THE  STREET  REVIEWS  

Flavor  and  Texture  The  initial  reactions  from  the  Man  on  the  Street  reviews  were  fairly  polarized,  mainly  due  to  Cool  Blasts’  intensity  and  novel  texture.  Many  respondents  felt  that  the  dissolving  nature  of  the  product  felt  weird  or  unnatural,  found  that  the  product  stuck  to  their  teeth,  or  expressed  that  the  experience  did  not  last  as   long   as   they   would   have   hoped   or   expected.   Others   enjoyed   the   texture,   claiming   the   dissolving  sensation  was  a  pleasant  or  at  least  interesting  experience.  The  intensity  of  the  mint’s  flavor  was  cited  in  virtually  every  interview,  commonly  described  as  “cool,”  “strong,”  “powerful,”  and  “fresh.”  While  some  

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were  thrilled  with  a  product  that  was  so  effective  at  bringing  an  intense  cooling  sensation,  others  found  it  was  too  strong  for  their   liking.  Typically,  those  who  preferred  gum  to  mints  were  more  likely  to  find  the  product  unsatisfying  than  those  who  preferred  mints.      Habits  Related  to  Use  Most  of  the  respondents  indicated  they  preferred  gum  to  mints,  and  liked  to  chew  gum  to  keep  busy  or  curb  hunger.  These  respondents  were  often  the  ones  criticizing   the  relatively  short   length  of   time  the  product   spent   in   their  mouth  before  dissolving.  However,   those   that   preferred  mints   to   gum  or   used  both   for  different  purposes  were  more   likely   to  point  out   the  value   in   the   short  dissolve   time   -­‐   citing  meetings  and  face-­‐to-­‐face  interactions  as  situations  in  which  the  product  would  be  useful.    

SURVEY  

Recognition  Ice  Breakers  was  a   recognized  gum  and  mint  brand  name  by  91%  of   survey   respondents,  behind  only  Trident  (93%)  and  Orbit  (92%).  Additionally,   Ice  Breakers  was  chosen  by  almost  33%  of  respondents  as  their   favorite  mint   brand,   handily   beating   runner-­‐ups   Tic   Tac   (23%)   and   Altoids   (19%).   However,   in   a  question   which   showed   an   image   of   each   Ice   Breakers   product’s   packaging,   Cool   Blasts   Chews  recognition  was  below  26%.  This   figure   is  even   lower   (24%)   for  millennial   consumers  between  18  and  24:   Cool   Blasts’   target   market.   Adversely,   Ice   Breakers   Mints   were   recognized   by   nearly   95%   of  respondents.      CMG  Perceptions  Some  of   the  questions  asked   in   the  survey  aimed  to  gather   respondents’  perceptions  of   the  mint  and  gum  segments,  as  well  as   the   Ice  Breakers  brand.   Interestingly,  consumers  believe  gum  and  mints  are  marketed   and   intended   for   vastly   different   age   groups.   When   asked   which   age   group   gum   is   most  associated  with  (in  their  opinion),  56%  claimed  it  was  consumers  age  12  -­‐  17,  and  25%  claimed  it  was  18  -­‐   24   year   olds.   Combined,   81%   of   respondents   believed   gum   chewers   were   under   25   years   old.  Contrastingly,   the   response  on   the  age  group  most  associated  with  mints  varied  greatly,  with   five  age  groups  (all  between  18  and  55+)  receiving  12%  or  more  of  the  vote  tally.    Important  Attributes  Another  way  consumer  perception  of  gum  and  mints  diverged  were  the  preferred  attribute  factors  for  each  product.  When  asked  for  the  most  important  attributes  when  chewing  gum,  respondents  -­‐allowed  to  select  up   to   three  choices   -­‐  overwhelmingly  chose   longevity   (83%)  and   flavor   (82%)  over  any  other  choices,  including  intensity  (32%)  and  price  (29%).  Again,  mints  were  more  greatly  varied  -­‐  five  choices  received  24%  or  more  of  responses.  The  top  two  choices  consisted  of  flavor  (85%)  and  intensity  (52%).  Longevity  was  nearly  half  as   important   in  the  mint  category  as   it  was  in  the  gum  category,  with  a  44%  response.  Shape/size  and  price  tied  with  24%  of  respondents  placing  those  traits  in  their  top  3.    

FOCUS  GROUP  

Two  panels  of  16  total  millennials  with  ages  ranging  from  18  -­‐  24  were  gathered  for  one-­‐hour-­‐long  focus  groups,   discussing   their  mint   and   gum   preferences   and   giving   their   opinions   about   Ice   Breakers   as   a  brand  and  feedback  about  Cool  Blast  Chews.  Almost  all  respondents  preferred  gum  over  mints,  although  few   respondents   had   adverse   feelings   toward   mints.   Most   respondents   both   chewed   gum   and  consumed  mints,  with  one  exception  for  both  gum  and  mints.  Most  respondents  preferred  gum  for  one  of  its  main  qualities,  long  lasting  flavor.  Other  reasons  participants  cited  for  chewing  gum  were  to  stay  busy  or  use  it  as  a  replacement  or  alternative  to  a  snack.  Most  agreed  that  buying  gum  was  more  of  an  

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impulse  buy,  not  something  that  had  a  good  deal  of  thought  put  into  it.  Respondents  were  most  likely  to  buy   at   convenience   or   drug   stores.   One   of   the  most   important   needs   brought   up   was   a   package   or  container   that  will   stay   closed.  When   focus   group  members  were   shown   the   package  of   Ice   Breakers  Cool   Blasts,   they   connotate   the   name  with   strong   flavor   and   long   lasting.   After   participants   tried   the  product,  most  said  that  it  seemed  like  a  gum  then  disappeared.  Some  participants  noted  the  very  strong  concentration   of   mint.   Finally,   when   participants   were   asked   how   they   would   use   it,   a   majority  responded  with  scenarios  involving  face-­‐to-­‐face  scenarios  such  as  before  a  date,  interview,  or  meeting.  

TARGET MARKET

PRIMARY  MARKET  

Ice   Breakers   has   identified   the   primary  market   for  Cool   Blasts   as   young  millennials,   aged   18-­‐24.   The  current   advertisements   and   sales   promotions   target   ethnically   diverse   consumers   that   are   typically  college  students  and  young  professionals,   living  a  social   lifestyle,  and  are  a  mix  of  singles  and  couples.  These  consumers  are  often  early  adopters  or  influencers  for  new  products.    

SECONDARY  MARKET  

Based  upon  primary  research,  the  secondary  market  Ice  Breakers  Cool  Blasts  Chews  should  be  targeted  towards   is   the  older  half  of   the  millennial  market,   those  aged  25-­‐34.  The   target  consumer  either   lives  alone  or  with  a   significant  other  and  has  no  kids,   living  a   fairly   social   lifestyle.   The  primary  difference  between  these  older  millennials  and  the  younger  ones  are  their  daily  experiences  and  roles   in  society.  The   older   millennial   is   frequently   out   of   college   and   is   entering   or   establishing   themselves   in   the  professional  world.  They  are  still  out  dating  and  networking  like  the  younger  millennial,  however,  they  are  also  more  likely  to  be  starting  families  or  settling  down,  which  could  result  in  less  disposable  income,  even  though  their  average  household  income  is  higher.  

CONSUMER  PROFILES  

The  two  target  market  profiles  above  have  been  broken  down  into  a  mix  of  five  top  consumer  profiles  below.   These  profiles   are   related   to  or   in   line  with   consumer  profiles  built   by  Nielsen’s   segmentation  application,  PRIZM.    

1. Up-­‐and-­‐Coming   Young   Influentials21   (UCYIs),   an   overlap   of   PRIZM’s   “Up-­‐and-­‐Comers”   and  “Young  Influentials”  capture  the  center  overlapping  section  of  the  two  identified  target  markets.    UCYIs  show  many  of  the  qualities  of  the  target  profile  formerly  known  as  yuppies.  They  typically  live   in   apartments,   are   surrounded   by   convenience   stores,   college   bars,   and   casual   dining  restaurants,  and  look  to  balance  school  or  work  with  a  social  life  in  any  way  they  can.  They  are  typically  from  upper-­‐middle  class  families,  and  live  in  second-­‐tier  cities,  meaning  that  they  have  slightly  more  disposable  income  as  their  cost  of  living  is  potentially  lower  than  some  their  city-­‐dwelling  counterparts.  They   look   to  get   the  most  out  of   their   lives  before  being  confined   to  a  desk,  while  simultaneously  pursuing  that  desk  job  that  will  give  them  financial  security  for  years  to  come.  

2. City  Startups22  are  slightly  younger  than  most  of  the  UCYIs  mentioned  before,  capturing  more  of  the   18-­‐24   age   range.   They,   like   UCYIs   have   settled   in   inexpensive   apartment   living   spaces,  surrounded   by   college   bars,   cafes,   clubs,   and   laundromats   that   all   cater   to   the  “twentysomething”   lifestyle.   This   segment,   one   of   the   youngest   consumer   groups,   covers   the  majority   of   college   students   in   the   United   States,   containing   as   much   as   ten   times   as   many  

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college  students  as  the  national  average.  Despite  their  low  disposable  income  due  to  the  entry-­‐level   or   internship   status   of   their   careers,   they   spend   more   money   on   impulse   and   leisure  purchases  than  the  average  consumer,  perhaps  because  they  have  not  yet  taken  on  many  of  the  responsibilities  of  their  older  counterparts.  

3. Urban  Achievers23  often   located   in  the  same  metropolitan  areas  as  UCYIs,  are  a  highly  diverse  group.  They  are  considered  the  “first  stop”  for  many  immigrants  from  Europe,  Asia,  and  South  America.   The   group   is   centered   in   many   port   cities,   which   are   frequently   considered   to   be  second-­‐tier  to  many  of  the  nation’s  city  centers,  creating  the  overlap  with  UCYIs.  They  tend  to  live  in  slightly  lower  income  areas,  and  frequent  the  same  convenience  stores,  drug  stores,  and  supermarkets   on   a   regular   basis   as   they   become   familiar   and   comfortable  with   them.   As   the  majority   of   these   consumers   are   new   to   the   area   they   are   willing   and   eager   to   adopt   new  products,   and   open   up   new   ethnic   demographic   targets   that   companies  may   never   consider.  Their  amount  of  disposable  income  varies  with  the  circumstances  of  their  arrival  to  the  United  States;  however,  many  fall  into  the  middle  class  income  bracket.    

4. Boomtown  Singles24  are  similar  to  the  City  Startups,  living  in  fast-­‐growing  satellite  cities  in  small  apartments   amongst   bustling   bars,   laundromats,   and   convenience   stores.   They   are   single   and  are  always  willing  to  try  new  things.  They  are  working  class  individuals  who  spend  their  leisure  time  and  disposable   income  wisely,  pursuing  active  social   lifestyles  between  working   for  small  start-­‐ups,  up-­‐and-­‐coming  young  companies,  non-­‐profits,  or  their  entry  level  job.  

5. Brite  Lites  Li’l  Cities25  are  the  upper  echelon  of  the  target  markets,  comprised  of  affluent  older  millennials.   They   feature   Double   Income   No   Kids   couples,   meaning   they   have   considerable  disposable  income.  They  live  in  smaller  metropolitan  areas,  frequently  in  downtown  high  rises,  condos,  and   lofts,  or  are  preparing  to  make  the  move  to  suburbia.  They  are  college  educated,  hold  well  paying  professional   jobs   in   larger  cities,  and   fill   their  homes  with  the   latest   fads  and  technology.  They  are  influencers  and  early  adopters,  which  will  help  to  bridge  the  gap  between  the  target  markets  and  the  consumers  outside  the  scope  of  these  target  profiles.  

POSITIONING

Ice  Breakers  Cool  Blasts  Chews  are  perceived  by  consumers  as  a  cross  between  a  mint  and  a  gum,  yet  are  positioned  by   Ice  Breakers  as  something  that   is  neither.  The  Cool  Blasts  combine  the  strong  flavor  intensity  typical  of  Ice  Breakers  mint  products  with  a  revolutionary  new  quick-­‐dissolving  effect.  Fast  and  Intense   are   traits   often   used   to   describe   the   bustling,   on-­‐the-­‐go   lifestyles   typical   of   high-­‐achieving  millennial  individuals.  The  intensity  and  consistency  of  the  mint  lends  itself  to  be  used  for  quick  breath-­‐enhancement,  meaning   the   product   ranks   high   on   a   utilitarian   scale   in   a   CMG  market   crowded  with  hedonistic,   experience-­‐focused   products.   A   full   perceptual   map   of   the   CMG   market   is   attached   in  Appendix  B.    An   issue   with   the   current   product   positioning   is   that   customers   are   unsure   about   what   exactly   the  product  is.   In  focus  group  testing,  respondents  were  correct  in  placing  that  the  product  would  be  fast-­‐acting  and  a  “blast”  of  minty  flavor,  mainly  due  to  the  name  of  the  product.  However,  beyond  those  two  modifiers,   participants   in   the   focus   groups   and  man  on   the   street   interviews  were  often  miffed   as   to  what  the  product  experience  would  entail.  Common  questions  asked  included:  “Is  this  a  gum?,”  “Is  this  a  mint?,”  “Do  I  chew  it  or  suck  on  it?,”  and  “Is  it  supposed  to  be  dissolving?”  Though  these  questions  were  answered  after  trying  the  product,  uncertainty  about  a  product’s  features  may  be  a  barrier  to  trial  when  consumers  are  not  being  given  a  free  sample.  Therefore,  both  the  packaging  and  the  promotional  efforts  should  seek  to  better  represent  the  product  uses  and  features.  

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MARKETING STRATEGY

PRODUCT  

Ice  Breakers  Cool  Blasts  Chews  matches  its  innovative  product  with  a  new,  sleek,  slide-­‐out  package.  The  packaging   allows   consumers   to  use   the  product   in   an  efficient   and   concealed  way   to   get   that   “whole  new   cool”   feeling.   The   rectangular   size   and   shape   of   the   product   also   allows   for   easy   storage   of   the  intense  cooling  chews.    While   the   packaging   design   itself   compliments   the   product   well,   the   labeling   design   could   add   and  modify  features  to  better  represent  this  powerful  product.   Ice  Breakers  products  are  widely  successful  as  a  family  product  line  so  the  company  name  should  be  more  prominent.  Cool  Blasts  are  a  new  product  that  consumers  may  be  wary  of;  if  they  see  clearly  that  it  is  an  Ice  Breakers  product  they  could  be  more  trusting  and  better  open  to  trial.  With  the  Ice  Breakers  logo  expanding,  some  superfluous  space  will  be  filled.    The   graphics   on   the   packaging   could   further   entice   consumers   to   be   interested   in   the   Chews   by  attempting  to  represent  the  cooling,   intense  features  of  the  product.  The  label  states  that  the  product  contains  Cooling  Crystals  but  does  not  display  them  well   in  the  non-­‐descript,  matte  wrap  of  plastic.   In  typical  layouts  for  point-­‐of-­‐sale  impulse  displays,  many  of  the  products  feature  bright  and  eye-­‐catching  colors.  By  moving  from  a  mix  of  blues  and  white,  to  a  black  base  color,  white  lettering,  and  lighter  blue  tones  that  match  the  rest  of  the   Ice  Breakers  product  mix,  Cool  Blasts  can  both  stand  out  on  the  shelf  and  convey  some  of   their  basic  product  benefits   to  better   inform  the  consumer.  Black  signifies  higher  perceived   value,   blue   shades   signify   professionalism   and   reliability,   and   white   lettering   signifies  cleanliness  and  freshness.  Additionally,  realigning  the  design  elements  on  the  front  face  of  the  packaging  will  make  the  product  look  less  cluttered  and  more  visually  appealing  to  customers.  Adding  “dissolving”  as  a  modifier  to  “peppermint,”  “spearmint,”  or  “wintermint  chews”  could  better  communicate  the  the  nature  of  the  product  and  reduce  confusion  or  uncertainty  about  Cool  Blasts.  A  rudimentary  label  design  example  can  be  found  in  Appendix  C.  

PRICE  

Pricing   fluctuates  depending  on  where  Cool  Blasts   are  purchased   regionally,  and  what   type  of   retailer  they  are  purchased  from.  The  price  point  hovers  close  to  $2.00  in  grocery  stores  and  supermarkets  like  Walmart  and  Target.  In  convenience  stores,  where  the  product  is  most  frequently  purchased,  Cool  Blasts  can  sell   for  up  to  $2.50.   Ice  Breakers  Cool  Blasts  Chews  are  not  considerably  more  expensive  than  any  other  Ice  Breakers  products,  in  fact  it  is  actually  cheaper  than  the  Ice  Breakers  Ice  Cubes  Gum  currently  on  the  market.  However,   if  displays   like  the  one  shown   in  Appendix  D  are  any   indication,   Ice  Breakers  are   typically   the   most   expensive   brand   of   gum   or   mint   offered.   Hershey’s   has   positioned   their   Ice  Breakers  brand  as  a  premium  product,  however,  the  price  difference  when  compared  to  other  brands  is  not   surprising.   This   reflects   in   our   primary   research   as   well,   where   we   found   that   consumers   who  analyzed   a   standard  Cool   Blasts   package   generally   expected   them   to   cost   close   to   $2.00.  While   price  should  not  be  a  deterrent  for  anyone  who  is  already  willing  to  pay  for  Ice  Breakers  products,  it  may  be  a  factor  for  others.  As  per  Hershey’s  request,  no  permanent  alterations  will  be  made  to  price.  

PROMOTION  

The  most   recognized   promotional   tool   is   the   national   TV   commercial   where   young   adults   are   shown  trying   the   product   for   the   first   time,   which   emphasizes   Cool   Blasts   Chews   as   a   new   and   innovative  product.     Although   the   television   spot   has   resulted   in   positive   feedback   and   trial,   efforts   in   digital  

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marketing  have  not  had  the  same  success.  A  digital  “If  Your  Gum  Doesn’t  Dissolve…”  campaign  featured  on   Hulu,   Youtube,   and   other   websites   popular   with   millennials   sparked   extreme   annoyance   from  consumers   –   specifically   claiming   that   the   gum-­‐smacking   sounds   are   severely   unsettling.   While   the  intent  of  the  ad  was  to  demonstrate  the  negative  impact  that  chewing  gum  can  have  on  one’s  social  life,  thus  illustrating  a  potential  benefit  in  using  Cool  Blasts  instead,  the  ad  has  actually  done  its  job  too  well.  Instead  inspiring  an  aversion  to  gum,  the  annoying  gum-­‐smacking  sounds  are  being  associated  with  Cool  Blasts.   The   Ice   Breakers   FaceBook   page   has   become   inundated   with   negative   posts   and   complaints  about  the  ads,  many  of  which  Ice  Breakers  has  responded  to.  Therefore,  this  ad  may  be  contributing  to  consumers   developing   a   negative   association   with   the   Cool   Blasts   product.The   content   of   these   ads  should   keep   the   same   humorous   aspects   and   continue   relating   to   situations   which  millennials   often  face,  but  should  change  the  focus  from  gum-­‐smacking  to  other  inconvenient  factors  such  as  getting  gum  stuck  to  the  bottom  of  a  shoe.      Other   digital   marketing   partnerships   with   online   platforms   such   as   College   Humor,   BuzzFeed,   and  Thrillist   should  be  continued  and  exemplified   through   further  efforts.  A  social  media  campaign  should  also  occur  on  other  platforms  such  as  Instagram,  Facebook,  and  Pinterest  that  puts  an  emphasis  on  the  fast  and  intenseness  of  Ice  Breakers  Cool  Blasts  Chews.    Further   promotional   strategies   should   include   giveaways   and   sport   event  marketing   tactics   that   also  relate  to  the  coolness  of  Cool  Blasts  Chews.  These  giveaways  and  events  should  be  publicized  through  print   ads,   billboards,   and   social   media.   An   email   should   be   sent   out   to   fans   and   those   entered   in  giveaways  monthly  to  remind  consumers  about  promotions  and  events.    As   is   the   case  with  many   new   and   innovative   products,   Ice   Breakers   Cool   Blasts  Chews   often   require  both  explanation  and  visual  demonstration  to  be  understood.  For  this  reason,  radio  promotions  would  not   adequately   communicate   the   benefits   of   the   product,   especially   when   compared   to   other   CMG  products.   Radio   promotions   work   most   effectively   as   reminders   about   products,   and   describing   the  product’s  experience  with  words  is  a  hard,  especially  since  Ice  Breakers  is  more  certain  about  what  Cool  Blasts   are   not   (gum  or  mint)   than  what   it   actually   is.     Additionally,  millennials   are   not   engaging  with  traditional   print   mediums,   due   to   their   need   for   authentic   appeals,   and   their   upward   trending  consumption  of  digital  news  sources  such  as  online  magazines,  blogs,  or  social  media  postings.          Providing  consumers  the  chance  to  try   Ice  Breakers  Cool  Blasts  Chews  will  encourage  future  purchases  of  the  product.  As  a  result,  free  samples  should  be  given  out  in  locations  frequented  by  millennials  and  young   adults   such   as   malls   and   college   campuses.   Giveaways   advertised   at   these   locations   will  encourage  consumers  to  sample  the  Cool  Blasts  Chews.  

PLACE  

Currently,   Ice   Breakers   Cool   Blasts   Chews   distribution   is   limited   to   select   local   and   national   grocery  retailer  locations,  dollar  stores,  convenience  stores,  and  drug  stores  such  as  Walgreens  and  CVS.  In  these  stores,  Cool  Blasts  and  other  Ice  Breakers  products  are  primarily  found  near  points-­‐of-­‐sale  with  other  of  the  impulse  buy  products.  Unfortunately,  not  much  about  store  planogram  placement  can  be  changed,  as   many   of   the   planograms   that   stores   utilize   are   either   determined   by   the   store   itself,   or   are  outsourced  to  third  party  businesses.   Ice  Breakers  should  consult  with   individual  retailer  companies  to  determine   if   Ice  Breakers  can  utilize  endcap  displays  more  frequently  to  promote  Cool  Blasts,  or  could  have  stand-­‐alone  displays.  

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GOALS AND OBJECTIVES

MARKETING  GOALS  

● Increase  awareness  of  the  Ice  Breakers  Cool  Blasts  Chews  products  in  the  target  markets  ● Increase  trial  in  consumers  aged  18-­‐34  ● Establish  a  presence  on  Instagram  and  Twitter  for  the  Ice  Breakers  Brand  ● Create  brand  equity  for  Cool  Blasts  as  an  emergency  breath-­‐freshener  through  implementation  

of  new  social  media  presence  on  Twitter  and  Instagram  ● Create  and  nurture  meaningful  and  authentic  connections  with  the  target  markets  

MARKETING  OBJECTIVES  

 ● Devote   first   quarter   of   promotion   strategy   to   driving   awareness.   Achieve   60%   product  

recognition  among  millennials,  a  150%  increase  from  the  primary  research  figure  of  24%.    ● Devote  middle   two  quarters  of  promotion   strategy   to   increasing   trial.  Achieve   sales   figures  of  

$15  million  in  final  quarter  of  2016  and  $20  million  in  the  first  quarter  of  2017    ● Devote   the   final   quarter   of   promotion   strategy   to   fostering   lasting   brand   connections   with  

consumers,   donating   up   to   $500,000   for   Corporate   Social   Responsibility   measures,   achieving  “viral”   status   (3  million   +   views)   on   the   filming   of   a   public   relations     event,   and   achieve   20+  personal  touch  points  per  day  with  customers  via  social  media.    

INTEGRATED MARKETING COMMUNICATIONS & BUDGET  

CAMPAIGN  THEME  

The   theme   of   the   campaign   will   center   on   the   two  most   identifiable   and   redeeming   qualities   of   Ice  Breakers  Cool  Blasts  Chews  -­‐  its  fast-­‐acting  nature  and  intense  mint  flavor.  The  “fast  and  intense”  theme  will  be  supplemental  to  the  existing  slogan:  “A  Breakthrough  in  Cool.”  This  tandem  of  taglines  will  not  only  allows  consumers  to  identify  that  Cool  Blasts  are  a  new  and  unique  product,  but  also  gives  insight  into  the  features  of  the  product.    In   alignment  with   the   goals   of   increasing   brand   awareness,   driving   first   time   trial   rates,   and   creating  brand  connections  among  consumers,   Ice  Breakers  should  divide   its  promotional  campaigns   into  three  timeline   segments.   A   mix   of   traditional   in-­‐home   and   out-­‐of-­‐home   advertising,   sales   promotion,  sponsorship,  and  partnership  opportunities  will  be  used.  Ultimately,  target  customers  will  be  drawn  to  Ice  Breakers  Cool  Blasts  as  a  product  to  fit  their  on-­‐the-­‐go  and  fast-­‐paced  lifestyle.  

ACTION  PLANS  

1. National  Hockey  League  Franchise  Partnerships  Ice   Breakers   Cool   Blasts   Chews   should   partner   with   three   National   Hockey   League   (NHL)   franchises  during   the  NHL   playoffs.   The   targeted   franchises   should   align  with   the   consumer   profiles   and   have   a  competitive  chance  to  advance  to  the  NHL  playoffs.  Potential  franchises  include  the  Los  Angeles  Kings,  the   Chicago   Blackhawks,   and   the   Tampa   Bay   Lightning.   Advertising   and   promotional   sponsorship  packages  will  vary  from  franchise  to  franchise  but  may  include  opportunities  such  as  digital  advertising  banners,   board   sponsors   (the   wall   around   the   rink),   fan   zone   sponsorships,   and/or   video   board  advertising  spots  during  period  breaks.  Should  sponsorship  deals  not  be  able  to  be  reached  for  just  the  

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playoffs,  this  entire  plan  could  be  shifted  to  kick  off  the  regular  season  in  September  of  2017,  and  run  for  the  same  three  to  four  month  time  frame.    The  NHL   is   a  more  affordable  partner   than  other  professional   sports   leagues,   yet   still   reaches   a   large  consumer   base.   The   television   networks   that   carried   the   2014  NHL   playoffs   reported   a   combined   for  1.445  million  views,  which  made  it  the  second  most  watched  playoffs  since  200626.  Another  deal  that  Ice  Breakers  can  make  with  the  NHL   is  sample  giveaways  at  each  partner  team’s  first  two  home  games   in  each  round  of  the  playoffs  they  advance  to.  The  giveaway  will  be  Cool  Blasts  samples.  The  samples  will  be  given  to  the  first  10,000  fans  that  enter  the  arenas.  The  minimum  reach  for  the  giveaway  would  be  60,00027   and   the  maximum  would  be  160,00028   fans   given   samples  depending  on  how   far   each   team  makes  it  into  the  playoffs  based  off  of  the  10,000  samples  for  each  partner  team.  This  giveaway  is  aimed  at   boosting   first   time   trial   numbers   exponentially.   A   budget   of   $2,000,000   is   recommended   for   this  promotion,  with  the  costs  being  allocated  as  needed  to  each  franchise.29  Budgeted  funds  would  be  split  between   sampling   and   a   mix   of   the   in-­‐arena   promotions   listed   above.   Each   partnership   will   require  different   cost   allocation   depending   on   individual   franchise’s   rates.   The   giveaway   samples  will   roughly  cost   $0.50   per   sample   so   the   cost  would   be   between   $30,000   and   $80,000   depending   on   how  many  samples  are  given  away.  The  partnerships  will  run  from  April  to  July,  the  time  span  of  the  NHL  playoffs.      

2. Hockey  Highlight  Segments  In  an  extension  of  the  association  of  Cool  Blasts  and  the  NHL,  Ice  Breakers  should  pursue  a  contract  to  sponsor   a   hockey   segment   on   ESPN’s   shows   SportsCenter   and   SportsCenter  @   Night.   This   would   be  similar   in   sponsorship   to   the   way   that   certain   passes   are   sponsored   occasionally   as   “Delivery   of   the  Game”   in   connection   with   a   pizza   chain,   or   the   Coors   Light   “Cold   Hard   Facts”   featured   daily   on  SportsCenter.  The  promotion  title  should  cover  both  the  excitement  of   the  highlight  and  connect   to  a  benefit  of  the  product.  Potential  promotions  could  be  similar  to  a  highlight  that  features  the  “Fast  and  Intense   Play   of   the   Game”   or   “Cool   Play   of   the   Game”   for   a   breakaway   goal   or   2-­‐on-­‐1   goal.   In   the  commercial   break   immediately   following   the   segment,   the   current   Ice   Breakers   commercial   featuring  the  young  millennials  would  run.  This  will  further  reinforce  the  product,  reach  a  wider  demographic,  and  ultimately  save  on  costs,  because  there  is  no  need  to  create  a  new  television  commercial.    ESPN   does   not   release   specific   costs   of   different   advertising   packages   unless   it   has   granted   prior  authorization.   Budget   planning   is   modeled   after   the   costs   to   advertise   on   similar   national   television  spots,  and  for  sponsorship  spots  in  other  mediums.  Budgeting  $1,500,000  should  cover  the  purchasing  of  the  segment  sponsorship  for  the  length  of  the  NHL  playoffs,  from  April  until  July,  and  the  purchasing  of  the  television  advertising  spots.    

3. Convenience  Store  Coffee  Sleeves  Sales  Promotion  Primary   research   has   shown   that   Ice   Breakers   Cool   Blasts  Chews  would  most   often   be   used   by   busy  millennials  who  wish   to   freshen   their   breath   quickly.  Often,   on-­‐the-­‐go   young   professionals   grab   their  morning   caffeine   at   a   convenience   store   on   their  way   into   their  workplace.  Most  morning   beverages  consist  of  hot  coffee  or  refrigerated  energy  drinks,  either  of  which  can  be  uncomfortable  to  hold  bare-­‐handed.  That  is  why  convenience  stores  provide  cardboard  drink  holder  sleeves,  known  as  zarfs.      Ice  Breakers  can  utilize  these  often  plain-­‐brown  zarfs  to  interact  with  their  target  consumer:  those  who  are   pressed   for   time   and   on-­‐the-­‐go.   Because   zarfs   are   most   often   used   for   coffee,   a   fast,   breath-­‐freshening   call   to   action   fits  well.   Coffee   drinkers   often   need   a   breath-­‐freshening   solution   after   their  morning  cup,  especially  when  heading   into  an  office  or  a  classroom.  Partnering  with  high-­‐end  regional  convenience   stores   renowned   for   their   coffee,   such   as  Wawa   and   Sheetz   on   the   East   Coast,   Kroger’s  

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Brands   and  QuikTrip   in   the  Midwest,   and  Raceway  on   the  West   Coast,   as  well   as  metro/train   station  coffee  stands  in  urban  centers,30  Ice  Breakers  could  provide  promotional  coffee  sleeves  at  no  charge  to  the   retailer.   Those  who  purchase   a   coffee   can   get   $.75  off   a   pack   of   Ice  Breakers   Cool   Blasts   using   a  barcode  on  the  sleeve.      Custom-­‐printed  coffee  cup  sleeves  can  be  produced   in  bulk  past  100,000  units   for  approximately  $.03  per  sleeve.  Printing  40  million  sleeves  would  tally  around  $1,200,000.  Stores  could  coordinate  with   Ice  Breakers   to   provide   promotional   signage   on   store   windows   and   gas   pumps.   Ice   Breakers   Cool   Blasts  Chews  coffee  cup  sleeve  promotion  could  also  be  mentioned   in  any  radio  ads  run  by  the  convenience  store   chains.   This   promotion   would   run   during   the   final   quarter   of   2016,   when   temperatures   are  dropping,  stores  are  marketing  fall  coffee  flavors,  and  consumers  are  buying  more  coffee.      

4. Digital  and  Social  Media  Marketing  Ice  Breakers  Cool  Blasts  Chews  should  use  a  heavy  mix  of  digital  banner  advertising,  content  creation,  and  consumer  interaction  to  drive  awareness  and  improve  brand  equity  and  authenticity  with  the  target  consumers.   The   first   step   in   establishing   a   better   online   presence   is   the   creation   of   additional   social  media  profiles  on  Twitter  and  Instagram,  which  are  two  of  the  most  popular  social  networking  sites  for  millennials.31    Ice  Breakers  can  post  content  from  these  profiles  to  promote  its  entire  product  line,  from  Mints  to  Cool  Blasts  Chews.  These  profiles  will  also  serve  as  a  touchpoint  with  consumers,  offering  the  brand   the   chance   to   get   feedback   and   promote   Cool   Blasts   Chews’   benefits.   Hashtags   such   as   to  #NeedToDissolve   will   be   useful   in   responding   to   user   posts   about   awkward   encounters,   such   as  situations   that   someone   would   want   to   remove   themselves   from.   The   #NeedToDissolve   campaign   is  meant   to   drive   direct   customer   interaction   with   the   brand,   and   is   formatted   to   be   a  more   personal  version  Southwest  Airlines’  “Wanna  Get  Away?”  promotions.  For  original  content,  #LifeInTheBlastLane  would   incorporate   storyscaping   into   examples   of   quick   situations   in  which  Cool   Blasts   could   be   used.  Lastly,  Ice  Breakers  can  utilize  all  of  its  social  channels  to  spread  awareness  about  its  other  promotions  such   as   the   “Cool   Summer”   Sweepstakes,   the   “Winter  Wonderland”   events,   and   the   #SaveTheShoes  campaign  during  their  respective  campaign  dates.   Ice  Breakers  should  also  create  a  series  of  digital  banner  ads  to  appear  on  current  partner  websites  like  College   Humor   and   Thrillist,   as   well   as   expanding   to   other   sites   that   correlate   to   the   rest   of   the  suggested  promotions  such  as  ESPN’s  websites.  These  banners  should  creatively  and  subtly  display  the  product  benefits,  such  as  moving  quickly  across  the  top  of  the  screen  or  dissolving  away  when  visitors  click  to  remove  them.  Rudimentary  examples  of  dissolving  banner  ads  can  be  found  in  Appendix  F1  and  F2. Ice  Breakers  should  continue  to  generate  sponsored  content  posts  through  Buzzfeed  and  partner  with  Buzzfeed   Video   to   film   and   promote   the   “Winter   Wonderland”   public   relations   campaign   and   its  #SaveTheShoes  campaign.  Buzzfeed  has  already  created  “listicle”  content  for  Cool  Blasts,  and  its  reach  is  exponentially   larger   than   any   of   Ice   Breakers’   other   social   platforms.   Ice   Breakers   promoting   the  Buzzfeed  created  content  across  all  of  its  platforms  will  also  drive  traffic  and  impressions. The  combined  budget   for  all  digital  and  social  media  marketing  efforts  totals  approximately  $980,000.  Creation  and  control  of  the  additional  platforms  should  be  of  relatively  no  cost.  The  global  CPM  rate  for  banner   ad   views   is   $1.30/1000   views32,   and   for   sponsored   content   on   social  media   the   range   is   from  $.20-­‐$.30/1000  views  depending  on  the  platform.  Each  platform  has  its  own  special  segmentation  tools  to   ensure   the   proper   audience   is   seeing   the   message,   but   require   a   minimum   investment,   usually  around   $200,000.   Investing   $300,000   into   each   of   Facebook,   Twitter,   and   Instagram,   $10,000   into  

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content   creation,   and   $50,000   to   increase   ad   banner   placements.   Lastly,   sponsored   content   for  Buzzfeed’s  entire  audience   is  estimated  at  $20,000  (this  cost   is  stated  as  well  with  the  #SaveTheShoes  campaign).  These  plans  will  kick  off  in  April  2017,  and  the  will  last  as  long  as  the  recommended  budget  allows  based  off  of  CPM.

5. Summer  Sweepstakes  Consumers  can  enter  a  “Cool  Summer”  sweepstakes  when  purchasing   Ice  Breakers  Cool  Blasts  Chews.  With  each  purchase  they  are  given  an  entry  code  to  enter  on  the  Ice  Breakers  website.  Entering  the  code  enters  the  customer  to  win  a  “cool,  fast,  and  intense”  vacation  package,  consisting  of  up  to  $10,000  of  new   adventures.   Travel   locations   should   capture   these   qualities.   Customers   will   also   have   a   “no  purchase   necessary”   option   in   which   they   can   mail-­‐in   their   entry   to   Hershey’s.   Customers   are   also  entered  to  win  a  series  of  other,  smaller  “cool  prizes”  such  as  one  of  100  $100  gas  cards  to  one  of  the  partner  convenience  stores,  a  four  pack  of  tickets  to  the  Stanley  Cup  Finals,  a  skydive  trip  for  two,  or  50  Amazon  Prime  Student  memberships.  The  additional  grand  prize  vacation  trip  would  bring  the  total  cost  to  $27,650.  This  special  promotion  will  be   introduced   in  April  2016,  and  winners  will  be  announced   in  June  2016,  in  line  with  the  quarter-­‐by-­‐quarter  campaign  approach.    

The  overall  cost  for  the  giveaways  would  be  $27,850.  The  first  $10,000  will  be  allocated  to  the  vacation  giveaway,33   the   next   $10,000   will   be   allocated   to   the   100   $100   gas   cards,   $5,000   allocated   for   the  Stanley   Cup   playoff   tickets   based   off   approximate   retail   value   from   201434,   $2,450   will   go   to   the   50  Amazon  Student  memberships  which  cost  $49  each,35  and  the  final  $400  will  cover  the  skydiving  trip  for  two  which  costs  roughly  $200  per  person.36  

6. Winter  Wonderland  Public  Relations  Event  Ice  Breakers  would  work  with  a  company,  such  as  “Sno-­‐Mobile”,  “Atlanta  Special  FX”,  or  “Florida  Snow  Services”,  to  sponsor  a  “Winter  Wonderland”  for  local  Boys  &  Girls  clubs  located  in  areas  that  do  not  get  snow,   such   as   Los  Angeles,  New  Orleans,   Phoenix,  Houston,   and  Miami.   Companies   such   as   the   ones  mentioned  above  provide  the  resources  for  “Snow  Parties”  in  various  locations  across  the  United  States.  A  “Winter  Wonderland”  campaign  would  reflect  the  essence  of  the  Cool  Blasts  product,  as  it  would  bring  a   “quick   cool”   in   the   form   of   a  mini   blizzard,   similar   to   the   way   Cool   Blasts   delivers   a   quick   cool   to  consumers  with  its  dissolving  Chews.  The  preparation  of  the  events  would  be  filmed  and  turned  into  a  viral  video  to  demonstrate  how  quickly  a  warm  area  was  transformed  into  a  Winter  Wonderland  with  a  “fast  and  intense”  blizzard.  The  process  could  be  edited  together  with  interviews  featuring  children  and  millennial-­‐age  volunteers  who  have  never  seen  snow  and  scenes  of  children  playing  in  and  enjoying  the  snow.   This   potentially   viral   video   could   be   shared   online   via   Hershey’s   YouTube   channel   and   the   Ice  Breakers  Facebook  page.    This  campaign  would  serve  as  a  Public  Relations  event  for  the  Cool  Blasts  product,  and  Ice  Breakers  as  a  whole,   helping   to   generate   positive   associations   with   the   product.   It   could   also   serve   as   a  means   to  educate  consumers  on  what  Cool  Blasts  Chews  are  and  how  they  work.  The  events  would  occur  during  the   first   quarter   of   2017,   in   January   and   February   -­‐   avoiding   holiday   noise   and   perhaps   showing   the  bright  side  of  snow  to  many  people  in  the  north  who  would  be  sick  of  the  cold  weather  by  this  point  in  

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the  winter.  The  campaign  would  be  run  over  the  course  of  several  weeks,  Ice  Breakers  bringing  a  blizzard  to  a  new  city  each  week,  and  cutting  one  conglomerative  video  from  all  of  the  events  combined.    This  event  would  cost  approximately  of  $6,000  per  city.37  For  five  cities,  this  would  total  $30,000.  This  includes  the  cost  for  the  snow,  delivery  and  labor  for  getting  the  snowfall  location  set  up,  as  well  as  for  the  filming  of  the  events  and  the  transportation  of  the  film  crew.      

7. Dissolving  Digital  Billboards  Ice  Breakers  Cool  Blasts  Chews  will   be   featured  on  digital   billboards   in  mid-­‐size   to  major  metro  areas  that  feature  concentrations  of  the   identified  consumer  profiles  such  as  Austin,  TX,  Philadelphia,  PA,  or  Chicago,   IL.   The  billboards  will   be   strategically   placed   along  busy  highways   entering   the   city   to   target  young  consumers  in  fast-­‐paced  and  close  contact  settings,  such  as  young  working  professionals.  The  ad  will  be  shown   in  Cool  Blasts  signature  colors  of  black,  white,  and  blue  but  will  also  have  a  crystallized  look.   The   crystallized   design   will   be   to   imply   the   intense   mint   flavor   of   the   Chews.   The   tagline   “A  Breakthrough   in   Cool”  will   also   be   featured.   A   unique   feature   of   the   billboard  will   imitate   the   Chews  exclusive  dissolving   attribute.   The  digital   billboard  will   attract   interest   and   attention  by   looking   like   it  dissolves  away  and  ultimately  shows  a  still  of  what  is  behind  the  billboard.    

A  digital  billboard   in  Chicago  makes  an  average  of  99,700   impressions  per  week  and  costs  $5,000  per  week   for   rotating   ten   second   spots   shared  with   six  other  advertisers.   The  ad  would   run   from  April   to  June  of  2016  to  drive  awareness  and  trial  of  the  product.  These  billboards  should  be  placed  in  nine  more  mid  to  large  sized  metropolitan  areas.  The  budget  for  three  months  in  all  ten  cities  would  be  $600,000  and  garner  an  approximate  11,900,000   impressions.38   If   the   first   run   from  April  2016  -­‐   June  of  2016   is  successful,  a  second  set  of  billboards  could  be  planned  to  close  out  the  campaign  from  December  2016  -­‐  March  2017.    

8. Corporate  Social  Responsibility  -­‐  #SaveTheShoes  Ice   Breakers   Cool   Blasts   innovate   how   consumers   freshen   their   breath   by   providing   many   of   the  attributes   of   gum,   but  without   the   awkwardness   and   inconvenience   of   its   disposal.  Cool   Blasts   could  capitalize  on  the  fact  that  their  product  will  never  cause  the  common  headache  of  stepping  in  gum.  To  increase   awareness   and   drive   trial,   an   article   will   be   posted   on   Buzzfeed   called   #SaveTheShoes.   This  article  will  highlight  unfortunate,  yet  humorous  moments  when  a  wad  of  gum  left  a  person's  foot  stuck  to  the  sidewalk.  Ice  Breakers  Cool  Blasts  is  sponsoring  the  article  as  an  alternative  breath  freshener  and  a  solution  to  #SaveTheShoes.      This   campaign   will   also   enhance   the   company’s   corporate   social   responsibility.   The   #SaveTheShoes  article  will  have  a  charitable  component  by  partnering  with  TOMS.  TOMS  helps  donate  shoes  to  children  in  need  all  over   the  world,  and   Ice  Breakers  Cool  Blasts  would  help  by  donating  a  pair  of   shoes  every  time  the  article  was  shared,  up  to  a  maximum  donation  cost  of  $500,000.  The  cost  for  Buzzfeed  to  help  design   any   articles   and   supplemental   video   materials,   and   publish   them   will   cost   approximately  $20,000.39   This   campaign  would  be   spread,  promoted,   and   shared   in   conjunction  with   the  DIgital   and  Social  Media  Marketing   budget   outlined   above.   The  promotion  would   be   launched   in  August   2016   in  conjunction  with  back  to  school  promotions  when  shoes  sales  tend  to  spike,  and  it  would  run  until  the  $500,000  donation  benchmark  is  matched.  

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 9. Iditarod  Trail  Sled  Dog  Race  Sponsorship  

The   Iditarod   Trail   Sled   Dog   Race   in   Alaska   is   a   fast   and   intense   race   that   is   held   on   an   annual   basis.  According  to  the  sponsorship  page  on  the  Iditarod  website  it  is  “a  one  of  a  kind  event  that  thrills  millions  of   race   fans   around   the   world   each   and   every   March.”   The   race   offers   four   types   of   sponsorships:  Principal   Partners,   Lead   Dog   Partners,   Team   Dog   Partners,   and   Wheel   Dog   Partners.   The   current  sponsors   for   the   race   have   been   sponsors   for   an   average   of   almost   17   years,   so   the   space   may   be  difficult   to   break   into.   However,   the   race   is   accepting   new   sponsorship   requests   on   its   website.   All  sponsors  are  scrolled  through  in  a  side  of  the  page  banner  box,  on  each  tab  of  the  Iditarod  website.  Each  race  is  viewed  on  television  in  certain  markets,  as  well  as  live  feeds  being  run  on  the  website.    Ice  Breakers  should  make  a  goal  to  be  a  sponsor  in  March  2017  race,  but  signing  on  a  sponsor  as  early  in  2016  as  possible  would  garner  almost  one  full  year  on  the  Iditarod’s  website.  While  a  sponsorship  quote  has   not   yet   been   received   from   the   Iditarod   sponsorship   representative,   a   budget   of   $15,000   should  cover   most   of   the   sponsorship   options   available   after   analyzing   the   size   and   scope   of   other   race  sponsors.    Lastly,   a   final   cost   of   $20,000  will   be   allocated   to   package   label   redesign.   The   total   costs   of   all   plans  above  equals  a  grand  total  of  $7,492,850,  coming  in  around  $2.5  million  under  the  allotted  $10,000,000.  A  total  budget  breakdown  and  timeline  for  all  marketing  plans  can  be  found  in  Appendix  E.  

MEASUREMENT AND EVALUATION  Sales  Forecasts  rely  heavily  on  three  traits:  historical  performance,  future  promotions,  and  performance  buzz.  In  its  first  three  months  of  its  product  launch  in  the  US,  Ice  Breakers  Cool  Blasts  Chews  saw  sales  of  nearly   $9,000,000.   According   to   The   Hershey   Company’s   2014   annual   report,   breath-­‐freshening  products  are  anticipating  growth  of  nearly  26%  over  the  next  five  years,  an  increase  of  more  than  5%  per  year   on   average.   Cool   Blasts   are   also   a   new   product,   and   in   the   first   six   months   of   their   existence  amassed  a  brand  recognition  figure  of  26%.  It  is  expected  this  recognition  will  only  rise  before  the  start  of  the  promotional  campaign  in  April  2016.  Assuming  brand  recognition  increases  by  only  half  as  much  as  it  did  over  the  first  6  months,  Cool  Blast’s  brand  awareness  will  be  around  39%  by  April  2016.      As  Cool  Blasts’  awareness  increases  with  new  promotions,  so  should  its  quarterly  sales.  In  April  2016,  it  is   estimated   that   brand   recognition  will   reach   39%,   and   by  March   2017,   the   objective   of   60%   brand  recognition  should  be  met.  Sales  growth  should  mirror   that  of  brand  awareness  growth.  With  a  150%  growth  in  awareness  from  October  2015  to  March  2017,  sales  should  reach  close  to  $23  million  by  the  final  quarter  of   the  marketing   campaign.   It   is   also  necessary   to   take   into  account  promotional  pricing  effects   on   the   sales   numbers.   The   coffee   sleeve   promotion,   set   to   run   for   three  months   in   the   final  quarter  of  2016,  will  take  $.75  off  of  the  sales  price  of  all  Cool  Blasts  sales   involving  the  purchase  of  a  coffee  at  the  participating  locations.  If  20%  of  those  who  receive  a  coffee  sleeve  with  the  promotion  act  upon   it,   about   800,000   Ice   Breakers   Cool   Blasts   Chews   packages   will   see   a   price   reduction   of   $.75,  meaning  the  promotion  would  result  in  $600,000  in  missed  sales;  however,  the  promotion  is  meant  to  do   its   part   in   driving   trial,   and   anywhere   over   50%   of   the   sales   from   this   promotion  would   not   have  occurred  without  the  discount.  Using  conservative   figures,   the  promotion  realizes  at   least  $700,000   in  additional  sales  (Avg  price  of  $2.50  at  convenience  stores  minus  $.75  =  ($1.75  sale  price)  multiplied  by  50%  of  sales  (400,000)  =  $700,000).  This  results  in  a  net  sales  increase  of  $100,000  from  the  promotion,  in  addition  to  driving  trial  and  potential  repeat  customers.    

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 Compiling   this   sales   data,   quarterly   projections   for   the   duration   of   the   marketing   campaign   are   as  follows:    $8.9  million  April  -­‐  July  2015  *1.5  growth  with  increased  recognition      $13.35  million    Q4  (January-­‐March  2016)  *1.86  growth  due  to  promotions  $24.83  million  Q8  (January  -­‐  March  2017)    (24.83  -­‐  13.35)                        4  =  average  of  $2.87  million  sales  growth  per  quarter  Q1:  $16,220,000   Q2:  $19,090,000   Q3:  $21,960,000   Q4:  $24,830,000    Total  sales  during  promotion  period:  $82,100,000  

CONCLUSION  By   recognizing   its   existing   shortcomings,   valuable   traits,   and   market   climate,     Ice   Breakers   can  implement  more  effective  ways  to  create  awareness  and  increase  trial  for  its  Cool  Blast  Chews.  With  the  target   marketing   being   18-­‐24   year   olds,   having   a   “fast   and   intense”   campaign   mirrors   the   value   Ice  Breakers  Cool  Blasts  brings   to  consumers   looking   for   fresh  breath   in  a   time  crunch.  Extensive  primary  research  methods  uncovered  the  polarizing  effect  the   intense  flavor  and  dissolving  texture  had  on  the  test   market,   but   found   that   those   who   enjoyed   the   product’s   attributes   would   be   receptive   to   the  unique  combination  and   selling  points  of   the  product.  By   creating  a   strong   social  media  presence,   Ice  Breakers  will   reach   its   target  market   without   needing   to   break   the   bank   on   expensive   and   outdated  traditional  marketing  platforms  such  as  radio,  print,  and  exhaustive  television  coverage.  Sporting  events  and  even  marketing  should  attract  a   lot  of  millennials  with  repeated  exposure.  With  a  wide  variety  of  events   and  promotions   that   fully   immerse   the   target  market   in   the  benefits  of   the  brand,  Cool  Blasts  should  see  exponential  increases  in  reach,  trial,  and  sales  numbers.                

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WORKS CITED  1.  "ICE  BREAKERS  |  The  History  of  Ice  Breakers."  Hersheys.com.  N.p.,  n.d.  Web.  06  Dec.  2015.  2.   "Hershey   Ranked   A   Top   10   Brand   For  Millennials   By   VoxBurner."  VendingMarketWatch.   N.p.,   n.d.  

Web.  09  Dec.  2015.  3.   "The  Hershey  Company  Receives  Globoforce's   Innovator  Award   for  Model-­‐Setting   Launch  of  Global  

Employee  Recognition  Program."  Yahoo  Finance.  N.p.,  n.d.  Web.  09  Dec.  2015.    4.  ICE  BREAKERS:  Amazon  Dash  Now  Available."  The  Hershey  Company.  N.p.,  n.d.  Web.  09  Dec.  2015.    5.  "Hershey's  Fresh  Breath  Chews  May  Dissolve  Gum  Sales  Further."  ConfectioneryNews.com.  N.p.,  n.d.  

Web.  09  Dec.  2015.  6.   "Hershey   Unveils   World’s   Most   Modern   Chocolate   Plant   in   Birthplace   of   the   Hershey’s®   Milk  

Chocolate   Bar."   Hershey   Unveils   World’s   Most   Modern   Chocolate   Plant   in   Birthplace   of   the  Hershey’s®  Milk  Chocolate  Bar.  N.p.,  n.d.  Web.  09  Dec.  2015.    

7.  The  Hershey  Company  (2014)  Form  10-­‐K.  Retrieved  from  SEC  8.  "TridentGum:  Home."  Home.  N.p.,  n.d.  Web.  09  Dec.  2015.  9.  "Orbit®  Gum."  Wrigley.com.  N.p.,  n.d.  Web.  09  Dec.  2015.    10.  "Extra®  Gum."  Wrigley.com.  N.p.,  n.d.  Web.  09  Dec.  2015.    11.  “LifeSavers.”  Wrigley.com.  N.P.’  Web.  08  Dec.  2015.  12.  "Welcome  to  Mentos:  About."  Welcome  to  Mentos.  N.p.,  n.d.  Web.  09  Dec.  2015.    13.  "LISTERINE  POCKETSTRIPS®  Oral  Care  Strips."  LISTERINE®.  N.p.,  n.d.  Web.  09  Dec.  2015.    14.  "Tic  Tac:  About."  Home.  N.p.,  n.d.  Web.  09  Dec.  2015.    15.  "Altoids®  HOME."  Wrigley.com.  N.p.,  n.d.  Web.  09  Dec.  2015.                                                16.   "Hershey   Sued  over  Packaging  of   Its   Ice  Breakers  Gum  Brand."  LegalNewsLine.  N.p.,   n.d.  Web.   09  

Dec.  2015.    17.  "CFR  -­‐  Code  of  Federal  Regulations  Title  21."  AccessData.FDA.  N.p.,  n.d.  Web.  09  Dec.  2015.    18.  "ECFR  —  Code  of  Federal  Regulations."  ECFR.  N.p.,  n.d.  Web.  09  Dec.  2015.    19.  "Choking  Prevention  for  Children."  Health.gov.  N.p.,  n.d.  Web.  09  Dec.  2015.    20.  Axe,  Josh.  "Xylitol  Side  Effects:  Safe  or  Dangerous."  Dr  Axe.  N.p.,  03  Nov.  2014.  Web.  09  Dec.  2015.        21."MyBestSegments:  Up-­‐and-­‐coming  Young  Influentials."  Claritas/PRIZM.  N.p.,  n.d.  Web.  5  Dec.  2015.                              22.  "MyBestSegments:  City  Startups."  Claritas/PRIZM.  N.p.,  n.d.  Web.  5  Dec.  2015.                      23.  "MyBestSegments:  Young  Achievers."  Claritas/PRIZM.  N.p.,  n.d.  Web.  5  Dec.  2015.                  24.  "MyBestSegments:  Boomtown  Singles."  Claritas/PRIZM.  N.p.,  n.d.  Web.  5  Dec.  2015.                      25.  "MyBestSegments:  Bright  Lights,  Lil’  City"  Claritas/PRIZM.  N.p.,  n.d.  Web.  5  Dec.  2015.                26.     "2014   Stanley   Cup   Playoffs   Are   Second   Most-­‐Watched   Since   2006."   TV   By   The   Numbers   by  

Zap2itcom.  N.p.,  16  June  2014.  Web.  09  Dec.  2015.    27.  3  Teams  X  2  Home  games  each  =  6  X  10,000  samples  =  60,000  (barring  no  team  makes  it  past  first  

round)  28.  3  teams  X  2  Home  Games  =  6  X10,000  samples  =60,000  X  2  rounds  =  120,000  +  40,000  (only  2  teams  

in  the  finals)=  160,000  29.    "NHL  Advertising."  Emerging-­‐advertising-­‐media  -­‐.  N.p.,  n.d.  Web.  09  Dec.  2015.    30.  "Top  101  Convenience  Stores."  CSPnet.  N.p.,  n.d.  Web.  09  Dec.  2015.    

31.  "Facebook,  Instagram,  Snapchat  Most  Popular  Networks  Among  Millennial  Teens  [Report]."  Social  Media  Today.  N.p.,  12  Aug.  2015.  Web.  09  Dec.  2015.  32.  "Facebook  Ads."  Facebook  for  Business.  N.p.,  n.d.  Web.  09  Dec.  2015.  

33.  Allocated  to  travel  and  lodging  expenses  34.  Allocated  to  travel,  lodge  and  game  tickets  35.  "Amazon  Prime  Membership."  Amazon.com.  N.p.,  n.d.  Web.  04  Dec.  2015.    36.  "Prices."  Tandem  Skydiving  Prices.  N.p.,  n.d.  Web.  09  Dec.  2015.    

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37.  "Florida  Snow  Machine  Rentals  -­‐  Real  Snow  and  Fake  Snow."  Floridasnowmachine.  N.p.,  n.d.  Web.  09  Dec.  2015.  

38.  "Digital  Billboards."  Lamar.com/Chicago.  N.p.,  n.d.  Web.  4  Dec.  2015.          39.        "BuzzFeed  Nails  the  'Listicle';  What  Happens  Next?"  WSJ.  N.p.,  n.d.  Web.  09  Dec.  2015.                                                                        

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APPENDICES  APPENDIX  A      

"Icebreaker's"  Cool  Blast  Sales  Channels  -­‐  April  2015  to  July  2015  Type  of  Store       Sales      Convenience  Stores       $            5,187,548   58%  Supermarkets       $            1,572,468   18%  Drug  Store       $                    820,506   9%  Target       $                    716,470   8%  Wal-­‐Mart       $                    409,037   5%  Dollar  Stores       $                    155,769   2%  Other       $                        32,271   <1%                      Total       $            8,894,069                    

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 APPENDIX  B  -­‐  POSITION  MAP    

                 

Utilitarian

Hedonistic

High Low Intensity  

Ice Breakers  

Listerine Breath

Altoids  

5 Gum  

Ment

Mentos

Extra Gum  

Tic-Tac  

Trident Gum  

Orbit Gum  

Ice

Ice

Ice Breakers

Ice

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 APPENDIX  C  -­‐  PACKAGING  REDESIGN  

       

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APPENDIX  D1  -­‐  EXAMPLE  PLANOGRAM  -­‐  NO  COOL  BLASTS    

       

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APPENDIX  D2  -­‐  EXAMPLE  PLANOGRAM  -­‐  WITH  COOL  BLASTS    

       

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 APPENDIX  E  -­‐  FULL  PROMOTION  TABLE    

Action  Plan   Budget   Timeline  

NHL  Franchise  Partnerships   $2,000,000   April  2016  -­‐  July  2016  or    September  2016  -­‐  December  2016  

Hockey  Highlight  Segments   $1,500,000   April  2016  -­‐  July  2016  

Coffee   Sleeves   Sales  Promotion  

$1,200,000   October  2016  -­‐  December  2016  

Digital  and  Social  Media   $27,850   Kick  off  April  2016  

Summer  Sweepstakes   $30,000   April  2016  -­‐  June  2016  

Winter  Wonderland   $980,000   January  2017  -­‐  February  2017  

Billboards   $1,200,000   First:  April  2016  -­‐  June  2016,    Second:   December   2016   -­‐   March  2017  

#SaveTheShoes   $520,000   August  2016  

Iditarod  Sponsorship   $15,000   March  2017  

Package  Label  Redesign   $20,000   April  2016  

TOTAL   $7,492,850   April  2016  –  March  2017  

       

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APPENDIX  F1  -­‐  DIGITAL  ADVERTISEMENTS:  DISSOLVING  BANNER  1                  

 APPENDIX  F2  -­‐  DIGITAL  ADVERTISEMENTS:  DISSOLVING  BANNER  2    

 

 

 

 

         

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 APPENDIX  G  -­‐  SELECT  SURVEY  RESULTS    

 

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