BMGT450

Prof. Bob fiddler

I. EXECUTIVE SUMMARY

Cracker Jack, one of America’s most iconic brands, has been in a steady decline for the

past 10 years, with stagnant sales and growth within the snack food industry. Although Cracker

Jack is the market leader of caramel flavored popcorn, the brand has been suffering due to a lack

innovation for advertising. In recent years, the only new Cracker Jack advertisements were for a

new product line called “Cracker Jack’d” which put a new twist on the traditional flavor of

Cracker Jack. With a relatively stable and unprofitable target market, Cracker Jack has allowed

itself to remain in the decline stage of the product life cycle. Unfortunately, the lack of inclusion

on PepsiCo’s annual report further claims Cracker Jack’s dire need to innovate its marketing

strategy before the brand disappears for good.

Our marketing objective for Cracker Jack is to increase annual sales from $33 million to

$38 million by reaching 15% of a new market in the next three years. We will accomplish this

goal by repositioning the iconic brand from African American women to Millennials, with a

specific focus on those who utilize social media (roughly 66 million). Since Millennials are a

high consumer of convenience goods, specifically snack foods, we believe it is appropriate to

revive Cracker Jack with the up and coming members of the working class. We will reach these

Millennials through social media advertising as well as sampling so they may not only try

Cracker Jack but engage with the brand.

We will be implementing a new advertising campaign across an assortment of social

media platforms including Facebook, Instagram, and BuzzFeed. Backed by our “Legends Never

Die” campaign, consumers will learn the rich, iconic history of Cracker Jack while embracing

“the legend within” through each purchase. Through strategic partnerships with local retailers in

urban cities, we will be able to see a positive increase in awareness and consumption of Cracker

Jack. We intend to utilize television and spotify ads as to reach all members of the Millennial

demographic.

At the end of year one, Cracker Jack should see a $1 million increase in their ROI alone.

Net sales should increase by 15% to $38 million due to our reposition and intensified distribution

across the United States. We firmly believe that embracing the legend inside each Millennial will

create a call for action to purchase and consume Cracker Jack. The pride of America’s favorite

snack will return to glory, one Millennial at a time.

II. SITUATION ANALYSIS

Currently Frito­Lay is doing very little advertising for Cracker Jack, thus sales are

presumably stagnant. For the past three years PepsiCo has not included Cracker Jack in its

annual report – thus it can be concluded that Cracker Jack is neither gaining nor losing

significant revenue. Cracker Jack has been given small advertising budgets in the past few years

– in 2012 there was no advertising budget and in 2013 Cracker Jack was only allotted $62,000.

(Newman). There have been a few attempts at advertising Cracker Jack in recent months. During

summer 2014 Cracker Jack had a summer­long “The Surprise Inside” campaign which focused

on encouraging families to do small acts of kindness for each other. Most notably, this past

November in the annual Macy’s Thanksgiving Day Parade in New York City Cracker Jack

created a float that celebrated the brand’s connection to baseball.

Cracker Jack’s most direct competitors are two brands of pre­popped, sweetened

popcorn: Crunch n Munch and Poppycock. Crunch n Munch and Poppycock provide similar

products to Cracker Jack – caramel­sweetened popcorn. The two competitors, both of which are

owned by Conagra, also do little to no advertising for their products. Because of this lack of

advertising we can also assume that Crunch n Munch and Poppycock have stable enough sales.

Although Cracker Jack and its competitors are not doing very much advertising, the

popcorn market has been growing. Currently, popcorn accounts for 9.2% of snacks sold (MRI+

MediaMark), but the popcorn industry is growing. We are targeting Millennials because of their

high rates of social media and their high rates of snacking. Millennials are the most likely people

to purchase snacks (Mintel). Millennial men are more likely to purchase salty snacks while

Millennial women are more like to purchase snacks in general (Mintel). This proves that

Millennials are the ultimate snackers – they value convenient, quick, tasty, snacks that provide a

good value. We believe this affinity for snacking could align well with our product.

Cracker Jack, in comparison to Crunch n Munch and Poppycock, is a much older, iconic

snack. Cracker Jack has a strong association with baseball and a deep history behind it. Crunch n

Munch and Poppycock are parity products that lack the history and backstory that makes Cracker

Jack an iconic brand. In the popcorn snack industry Cracker Jack has 24% of the market share,

whereas Crunch n Munch and Poppycock control 21% and 16%, respectively (MRI+

MediaMark). Cracker Jack controls more of the market than its competitors, but there is still

definitely room for growth.

Our marketing plan is multi­faceted. Among Millennials, Cracker Jack has a high recall

rate, but low intent­to­purchase. We seek to stimulate trial use to get the product into the hands

of our target market, and then change their brand perceptions. Cracker Jack has a strong

relationship with baseball, thus many people associate our product with memories of sports,

family outings, and connections with people. These are good memories, but they are not

necessarily inspirational enough to push consumers to buy the product. We want Millennials to

recognize the deep, iconic history behind Cracker Jack. We want to emphasize to them that our

product is much more than an old snack, but rather it is a legendary snack with a deep history.

Cracker Jack is a legend in its own right, and if someone eats it they have the chance to be a part

of the legend as well.

III. OBJECTIVES

Marketing Objective ­ Increase annual Cracker Jack sales from $33 million to $38 million

by reaching 15% of newly positioned target market over the next three years.

Currently, Cracker Jack’s primary consumers are African American women between the

ages of 45 and 54. Their current income is under $20,000 due to their low income occupation as

a result of minimal schooling. These women are single with two children living in suburban /

rural communities in the Southern region of the United States. We are choosing to stray away

from this current market because the brand is now past maturity and in the decline stage of the

product life cycle. That showed us that Cracker Jack had two options for business: continue on

their downwards trend or reposition to a new market to re­invigorate the brand itself. Over the

past 5 years, PepsiCo has withheld Cracker Jack expenses and revenues from their Annual

Report, meaning the brand has had insignificant impact on the entire company.

As of 2009, Cracker Jack was the market leader of Caramel Popcorn snacks with 24%

market share. We believe with their iconic brand and well established presence as an American

snack (reference “Take Me Out to the Ballgame”) will serve instrumentally for repositioning to

our new target market: Millennials. When analyzing Mintel on salty snack consumption, we saw

that consumers between the ages of 25­44 are the most likely to purchase and consume salty

snacks, specifically men. Specifically, the younger demographic of consumers (18­24) are the

most likely to purchase snacks when provided at convenience stores, which is where Cracker

Jack tends to be distributed. As a result, we have switched our target market to Millennials

between the ages of 18­34, with a majority of focus on males because men are more likely to

consume salty snacks than women (Mintel).

By transitioning our target market from African American women to Millennials, we

believe Cracker Jack will be able to increase sales revenue by $5 million, a little over 15% from

its current sales trend. Reaching a brand new set of consumers will allow Cracker Jack to

re­create its iconic advertising in a modern twist in order to engage younger generations with the

brand. We are confident its current sales will not be cannibalized by its repositioning in year one

because African American women in low income households will still find the product at their

local convenience stores to buy.

IMC Objective 1 ­ Reposition the brand to Millennials ages 18­34 that utilize social media to

increase sales by 15% over one year.

Through our research, we have found that consumers between the ages of 18­24 are most

likely to snack throughout the day and Millennials aged 18­34 are most likely to snack while on

the go (Mintel). Since Cracker Jack itself is individually packaged and highly portable, we see

the product as the perfect snack to complement the lifestyle of Millennials. The Mintel report

also indicates that Millennials place the highest importance on getting the most value for their

money when making purchase decisions. Since Cracker Jack is a low­priced snack that satisfies

hunger as well as two different kinds of cravings (sweet and salty), it has the opportunity to be

the product that gives Millennials the most value for their purchases.

IMC Objective 2 ­ Stimulate trial use to achieve 10% of Millennials, who use social media, in

year one.

According to a Mintel report, 89% of consumers engage with some type of social media

platform. This correlates to roughly 66.13 million Millennials between the ages of 18 and 34 in

the United States. As a result, Cracker Jack has the opportunity to reach over 66 million people

by properly incentivizing trial use via social media advertisements, as aforementioned. It is our

goal to first engage with consumers through social media platforms to create a positive brand

image of Cracker Jack. Through this strategy, we are confident consumers will have a new desire

to try Cracker Jack when exposed in the vast assortment of retailers we will be distributing to.

IMC Objective 3 ­ Convert 15% of one time buyers into repeat purchases during year one.

As we stimulate trial use we also want to encourage our customers to continue to

purchase Cracker Jack. A recent study stated the top reasons why consumers engage with

companies after purchase were because of discount offers, 67%, and contests / giveaways, 41%

(Staff). As a result. we want to incentivize a repeat purchase by giving away a coupon with every

sample. The customer will hopefully sample Cracker Jack and then want to use the coupon to

buy their own box. If the customer enjoyed their purchase enough, then hopefully the next time

they went to the grocery store they would be willing to pay full price for the product. This

technique, the shaping method, is a way to encourage repeat purchases. We want to build our

loyal customer­base utilizing this approach. In addition to the coupon we are also hosting a

sweepstakes with a chance to win a trip to Disney World. We believe this trip embodies what

Cracker Jack stands for and is a compelling prize that would attract many repeat buyers.

IV. STRATEGIES & PLANS

Repositioning Cracker Jack towards Millennials will not be an easy feat. Frito­Lay must

allow for a creative execution that not only stimulates interest but creates a positive atmosphere

around the brand. Our new consumers are energetic members of society that are hard working in

their day to day life. They are extremely tech savvy and enjoy sharing multiple aspects of their

daily lives online to their friends and family to establish a sense of connectivity with one another.

These consumers, as members of the Single I demographic, are egocentric, purchasing products

that give them the most “bang for your buck” because brand value is of high importance.

Nevertheless, in order to reach these consumers with physical products, we must increase the

distribution breadth of Cracker Jack. As of today, it is only sold in small convenience stores

across the United States, accumulating to its low sales. If the product can be placed with strategic

partners, such as Giant or Safeway with national chains, then Cracker Jack can get the facetime it

deserves and the convenience for Millenials to locate and consume.

As a result, we conceived the “Legends Never Die” campaign to bring Cracker Jack back

to the land of economic prosperity. Inspired from the movie The Sandlot, “Legends Never Die”

focuses on the iconic history of Cracker Jack and its individual implication for customers. In the

film, Babe Ruth explained to young Benny Rodriguez “Remember kid there’s heroes and

legends. Heroes get remembered but legends never die”. Although Babe Ruth was inspiring the

young protagonist to take a leap of faith to retrieve a historic piece of baseball history, the

message can still resonate today with Cracker Jack. Being a “hero” now means someone (or

something) has a few minutes of fame with everyone raving about it. However, if he or she do

something so bold, so daring to be considered a legend, then he or she would never truly die

because their story would forever live on. That is exactly the type of brand resonation Cracker

Jack has and can utilize as an iconic snack in America. As heard in the song “Take Me Out to the

Ballgame”, Cracker Jack has been a part of our culture for 118 years and it was not by accident.

It took hard work and determination by its founders to create this one of a kind snack for people

of all ages to eat and enjoy. Nowadays, many have forgotten or have yet to try this tasty treat

because it has laid dormant for so many years. Well, Cracker Jack’s days in the dark are over; the

time to embrace the legend within is now.

The marketing direction of “Legends Never Die” is one that encompasses both the iconic

history of the brand and the self actualization of every consumer of the product. First, we aim to

bring back the iconic box that Cracker Jack used to be sold in to re­spark the recognition of the

brand. Currently, Cracker Jack is sold in cellophane bags that blend in with other snack food

options at major retailers. This has been detrimental to the snack because Frito­Lay essentially

took their “ace off the mound” by having their one visual differential taken away. With the

vintage yet modern packaging (see appendix 3A), we believe Cracker Jack will be able to

capture the attention of American Millennials. With traditional red, white and blue seen across

the packaging, consumers will feel a sense of American pride buying Cracker Jacks, which is a

key factor in making purchases according to a recent study.

The main driver of this campaign will be the emotional effect the brand has on its end

consumer. When people think of the word “legendary” icons like Babe Ruth, George

Washington and even Barney Stinson (How I Met Your Mother) come to mind. Yet, would

anyone think of themselves as legendary? At first no because members of society tend to be

modest about their own accomplishments. However, when somebody buys a box of Cracker

Jack, it is more than just a snack to satisfy their hunger. It is an iconic piece of history that will

never die. Its tradition of 118 years speaks for itself inside the heart and soul of every American

who buys one. For our Millennials, who are focused on their upcoming careers and legacies in

society, what better way to leave a mark than to become a legend?

IMC Objective 1

In order to reposition Cracker Jack to Millennials that use social media, we aim to first

reach 25% of new target market with advertising brand message over one year, with an average

frequency of 10. Since Millennials are not currently loyal users of Cracker Jack, we need to

reach out to them based on the platforms in which they frequent the most. By distributing brand

advertising messages over these platforms, we will familiarize Millennials with our brand and

ultimately purchase our product over those of our competitors.

We plan on employing network television advertising in six four­week session over the

course of a year at a level of 2100 Gross Rating Points (GRPs). This number is derived from the

rationale that six four­week sessions of advertisements are about 168 days and we want to reach

25% of the target market over a year. The television advertisement will convey the fact that the

protagonist of the story ultimately chooses Cracker Jack, which is portrayed as the legendary

snack, over the baseball, the “hero” of American sports (see Appendix 3I). We want to show that

Cracker Jack is a brand that will withstand time and will not be bound by its current associations.

In addition to television advertisements, we will be working with Buzzfeed as well as

Spotify for sponsored posts and online radio advertisements, respectively. The Buzzfeed posts

will be distributed through the Buzzfeed website on a bi­weekly basis over the course of a year.

The tone of these posts will be engaging and more lighthearted than the television advertisement.

We want these posts to be understood and related to immediately so our target audiences will be

willing to share with their peers at the click of a finger. An example of such post will be, “12

Things (Almost) as Legendary as Cracker Jack” featuring relevant characters such as Barney

Stinson from the hit television show How I Met Your Mother(see Appendix 3F). The jargon and

writing style will also be complementary to the way Millennials behave online. The purpose of

employing Buzzfeed content is to make Cracker Jack more relevant to Millennials encourage

them to build a long­term relationship with our brand. Similarly, Spotify advertisements will be

in audio form which will run for 30 seconds every 15 minutes over the course of a year. There

will also be a pop­up display advertisement that shows up when the audio advertisement is

playing so users will be less likely to ignore our brand message (see Appendix 3G). The message

in both audio and visual advertisements will emphasize the major role that the legendary snack

of Cracker Jack has played in America’s history, and will continue to be a huge part of it because

“Legends Never Die.” Both advertisements will end with an invitation to the audience to be a

part of the legend by claiming their very own box of Cracker Jack (see Appendix 3H).

IMC Objective 2

To stimulate trial use with its new consumers, Crack Jack must first obtain a reach of

75% of Millennials over one year with a frequency of 7 per week. Through proper utilization of

social media platforms such as Facebook, Twitter, and Instagram, Cracker Jack will see a higher

engagement with their target market. As a result, we believe Cracker Jack will observe an

increase in Millennials purchasing their product, the end result of our campaign. To achieve this

goal, we recommend Cracker Jack generates consistent social media posts each week for the

course of one year to successfully engage with Millennials. By posting five times per week for

an entire year, Cracker Jack will not only create a new buzz around the brand online but provide

interesting content for users to read and comment on, giving the company the publicity it desires

with its consumer. This will eventually lead to a positive association with our brand because

according to a Mintel report, Millennials tend to positively view and purchase from companies

that post “relevant and interesting content” online. These social media posts will reach an

average of 5,000 people per day via Facebook, both from uploaded content and shared articles

(see appendix 3F).

To physically impact trial use, Cracker Jack must set up point of purchase displays in

strategic retailers across the United States. Since Millennials tend to inhabit in metropolitan

areas, both major and secondary cities, the sampling locations must be accessible to them. At

each location, there will be a POP table set up with a representative from Cracker Jack that will

be distributing free samples of the product to eager customers while also providing information

about upcoming promotions, including our sweepstakes (see following IMC Objective and

Strategy). In addition to the free samples, which we expect 25% of daily shoppers to stop and

sample, representatives will be handing out coupons (see appendix 3C) to purchase a box of

Cracker Jack for 25% off. This will eventually lead into the shaping method (explained in IMC

Objective 3) for repeat purchase. This strategy is primarily focused on the consumer’s cognitive

and conative attitudes for purchasing products. Since these Millennials will be attempting to

satisfy a need (hunger), they will be looking for a convenience product that is affordable and

tasty (Mintel). Cracker Jack not only fits both of these requirements but offers a unique

experience with every purchase, allowing consumers to become a part of the legend with this

iconic brand.

IMC Objective 3

In order to convert one time users into repeat purchases, we aim engage customers

through post­purchase advertising. Through consumer engagement via social media, Cracker

Jack can encourage users to review the product in real time, which gives the brand the

opportunity to utilize their customer service initiative, an aspect highly valued by consumers. We

plan on engaging consumers even further by establishing a new Cracker Jack Sweepstakes

through social media platforms that were previously mentioned. According to a recent study,

consumers are 41% more likely to engage in repeat purchases when a contest or sweepstakes is

involved (Gooin). Currently, Cracker Jack is running a “Grand Slam Sweepstakes” in which

users are instantly entered to win a trip for a family of four to the 2015 World Series while 525

second place winners receive $10 Walmart gift cards. To participate in the Cracker Jack

Sweepstakes, customers will first take a special code they receive from their box of Cracker Jack

and fill out an online entry form found on the Cracker Jack Facebook page. This allows Cracker

Jack to boost their online social media presence while offering a high incentive for consumers to

purchase their product. The grand prize of this contest will be a three­day trip for a family of four

to Disney World, whom Frito­Lay has had a partnership with since 2002 (The Walt Disney

Company). In order to be more inclusive in the sweepstakes, 100 runner up contestants will

receive $25 pre­paid Visa gift cards. This sweepstakes will allow Cracker Jack to show that it is

more than just a snack, but instead is a legendary experience that our consumers would want to

be a part of.

V. BUDGET

To successfully implement our “Legends Never Die” campaign alongside the product

repositioning, Cracker Jack will need $1,460,480 from the marketing budget. 48% of our

proposed costs accumulated from our first objective which was the repositioning of Cracker Jack

to Millennials. As displayed in appendix 5A, our social media posts will accumulate about

$300,000 in expenses while the production of our video advertisement will cost roughly

$400,000. 50% of our budget can be expensed to our second objective focused around sampling

for new customers in retail stores. Finally, our post purchase focus, mainly the Cracker Jack

sweepstakes, will cost only $23,000, making it the cheapest and most feasible objective.

With our goal of 15% increase in total sales for year one, we will be making a profit of

nearly $3 million from sales and marketing expenditures alone. Our return on investment is

expected to increase by $1 million at the end of year one, showing promise for our “Legends

Never Die” campaign. With a positive increase in ROI as well as net profit of $3 million in sales

alone, we firmly believe this is the turnaround Cracker Jack needs to become a major snack food

competitor again. In addition, this will further increase Cracker Jack’s brand dominance of

caramel coated popcorn from 24% to 27% (IBIS).

VI. EVALUATION

Our campaign focuses on extending our reach and influencing brand perceptions with the

intention of raising sales. There are many key performance indicators that could convey the

success of our efforts, however some are definitely more indicative of success than others. The

key performance indicators are as follows:

Revenue Growth Rate

Customer Retention Rate

Market Growth Rate

Market Share

Conversion Rate

We have chosen key performance indicators that better describe our marketing and IMC

goals. Many of our chosen key performance indicators are related to growth and customer

retention.

Revenue growth rate is an obvious key performance indicator to follow, because our

ultimate goal is to increase sales. We will note any revenue growth in terms of dollars and as a

percentage of total revenue. This is a fairly basic metric that we would be able to track with very

little manipulation of financial statements necessary.

The second key performance indicator we want to measure is customer retention rate.

One of our goals is to increase the number of repeat buyers. By calculating customer retention

rate we would be able to see which customers continue to return to buy more Cracker Jack

versus those who only purchase our product once. Knowing how to measure customer retention

rate could be tricky, but we could mitigate some of the uncertainty with a rewards program or by

recollecting the coupons handed out from sampling (the coupons could be made valid only after

the sampling day.

We would also like to keep track of market growth rate and market share. As we

mentioned before, the popcorn industry is growing. While we would love to see more customers

purchase Cracker Jack, we also need to be aware of external factors outside of our control. If we

see our market share grow, we also need to make sure the growth is not only related to industry

growth. We would mainly keep track of these two metrics towards the end of the year when

economists deliver their growth projections.

The last key performance indicator we would monitor is conversion rate. Since we are

going to market Cracker Jack fairly heavily online and on the television, we would want to

convert people from their normal snack to our legendary snack. Our mobile/ and online

advertising would be a great way to catch people while they are on the go and encourage them to

go buy a box of Cracker Jack. Conversion rate would be one of the hardest metrics to measure.

We would most likely have to work harder to collect more detailed answers in order to measure

conversion rate.

Key performance indicators are important to monitor. In terms of our campaign we

heavily focused on growing sales and increasing our number of repeat purchasers. We would, of

course, measure standard key performance indicators (such as production rates) in the process of

conducting business and preparing financial statements. However, the key performance

indicators that are more indicative of our campaign’s success would be slightly different from

standard metrics so we would have to pay particular attention to them.

X. APPENDIX 1. Revised Media Strategy Executive Summary The aim of this media strategy is to offer new programs to increase Cracker Jack sales. Currently, Cracker Jack has a high relative market share of caramelized popped corn snacks but has no marketing to generate new business. Our goal is to reposition Cracker Jack to Millennials because the current target market of African American women aged 45-54 is stagnant, contributing to the decline stage the brand is currently in. As a result, we saw two options: change up the positioning or watch one of America’s most iconic brands vanish within the next 50 years. We believe through increased social media presence, Cracker Jack can engage with loyal customers in order to build stronger relationships between the brand and its consumers. This will ultimately lead to a 3% increase in total market share with 10% of the target market purchasing Cracker Jack. The Facts What is the marketing objective? Measurable marketing goal over x time period. (Example: Increase gross sales 5% year-to-year in year 1, vs, last year’s 2% increase.) Increase total number of Cracker Jack consumers by reaching 15% of newly positioned target market, millennials, over the next 3 years. (For year 1, we expect to reach 10% of millennials) Currently, Cracker Jack’s primary consumer are African American women between the ages of 45 and 54. Their current income is under $20,000 due to their low income occupation as a result of minimal schooling. These women are single with two children living in suburban / rural communities in the Southern region of the United States. We are choosing to stray away from this current market because the brand is now past maturity and in the decline stage of the product life cycle. That showed us that Cracker Jack had two options for business: continue on their downwards trend or reposition to a new market to re-invigorate the brand itself. Over the past 5 years, Pepsi-Co has withheld Cracker Jack expenses and revenues from their Annual Report, meaning the brand has had insignificant impact on the entire company. As of 2009, Cracker Jack was the market leader of Caramel Popcorn snacks (see table below) with 24% market share. We believe with their iconic brand and well established presence as an American snack (reference “Take Me Out to the Ballgame”) will serve instrumentally for repositioning to our new target market: Millennials. When analyzing Mintel on salty snack consumption, we saw that consumers between the ages of 25-44 are the most likely to purchase and consume salty snacks, specifically men. Specifically, the younger demographic of consumers (18-24) are the most likely to purchase snacks when provided at convenience stores, which is where Cracker Jack tends to be distributed. As a result, we have switched our target market to Millennials between the ages of 18-34, with a majority of focus on males because men are more likely to consumer salty snacks than women (Mintel). The Competition

Please fill out the table to the best of your ability. PLEASE, INCLUDE YOUR OWN BRAND IN THE TABLE.

Competitor Market Share

Share of

Voice

What’s in the Media Mix

What’s Noteworthy

Cracker Jack

24% 0 Social Media No advertising budget in 2012, in 2013 ad budget was only $62,000, 37% reach on social media

Crunch N Munch

21% 0 No Advertising

In 2004, the NY Yankees replaced Cracker Jack with Crunch n Munch, but public outcry forced them to switch back to Cracker Jack. Rapper Mike Jones has a song called “Crunch n Munch”. No social media presence.

Poppycock 16% 0 No social media presence. Target Markets What are your target markets? How large are they?

Targets Size of Target Markets (000)

Millennials (Ages 18 - 35) 74.3 Million

Millennials that Use Social Media (89%) 66.1 Million

Geography Are there any geographic considerations that could affect your strategy. Currently, Cracker Jack is heavily consumed in the Southern region of the United States, which correlates to their distribution system being heavily focused on that portion of the country. Seasonality Are there any seasonal considerations that could affect your strategy? Although data for Cracker Jack is scarce, we know a strong correlation between Cracker Jack sales and the months in which it is consumed follows the Major League Baseball schedule (April-October). Since Cracker Jack has a strong association with baseball, we believe there will be lower sales when baseball is NOT in season aka November-March (primarily the winter season). However, we believe with the repositioning of the brand, we can have consumers enjoying Cracker Jacks at all times of the year. IMC & Media Objectives & Strategies IMC Objective #1: (Example: Increase unaided awareness of brand from 20% to 30% among target x in year 1.)

Challenges What specific challenges do you face to achieve your marketing IMC objective?

• Repositioning to a brand new market and demographic is extremely risky • Targeting millennials on social media will be hit or miss. Our content must be creative

yet engaging without “spamming” our potential consumer • Cost of reaching and gaining the desired number of followers will be high. The frequency

of posts and payment of strategic ads to our demographic will have long term pay-offs but high short expenses.

Media Objective #1: Reach 25% of new target market with advertising brand message over one year, with average frequency of 10. Rationale for Objective: How does this objective help you reach the IMC objective? In order to reposition the brand to our new target market that are not currently loyal users of Cracker Jack, we need to reach out to them based on the platforms in which they frequent the most. Through advertising our brand message of the course of one year, we aim to familiarize millennials with our brand and ultimately purchase our product over those of our competitors. Media Strategy #1: Employ network television advertising in 6 4-week sessions across the course of the year at a level of 2100 GRPs.

• 6 4-week sessions of advertisements are about 6 months, 168 days; we want to reach 25% of our target market over 1 year, 12.5% over 6 months, so 168 x 25 = 2100

Media Strategy #2: Employ the following social media advertising: - Buzzfeed Sponsored posts - Spotify Advertisement Approximate Media Cost: TV advertising: Media cost for video production - $150,000 IMC Objective #2: Stimulate trial use to achieve 10% of Millennials, who use social media, in year 1 (6.61 million) Challenges What specific challenges do you face to achieve your marketing IMC objective?

• There are many popcorn snacks/snack alternatives already in grocery stores • Stores may be unwilling provide samples (lack of space, lack of labor) • Cracker Jack is mainly sold in convenient stores, gas station stores, drug stores

Media Objective #1: Obtain a reach of 75% of millennials over 1 year with a frequency of 7 per week over the following social media platforms: Facebook, Twitter, and Instagram. Rationale for Objective: We are aiming to create top-of-mind awareness within our new target market, millennials. We are going to start by engaging with millennials through online platforms in which they frequent the most. We are implementing in-store sampling to further our reach in our new target market. If consumers are in stores and are able to engage with Cracker Jack in person, then they will be more likely to try the snack. Media Strategy #1: Generate 5 social media posts per week over the course of 1 year to engage with millennials. Posting 5 out of 7 days a week will give Cracker Jack the opportunity to engage with their target consumers comfortably throughout the year. We believe these posts will vary in detail and content so that it is not solely product or brand based. As a result, consumers will begin to learn about Cracker Jack as a company as well as see how Cracker Jack fits into their everyday lives, a secondary goal we have while reaching our new consumers. Approximate Media Cost: Facebook: $275 / week ~ $14,300

• Promoted Post = $5 per 1000 page views o 1 post should reach 5,000 people → $25 per post o $125 per week

• Sidebar Ad = $1 per click o Budget $100 / week

• Sponsored Story = $.50 per click o Budget $50 / week

Media Objective #2 Increase in-store purchases with point-of-purchase displays. Rationale for Objective: Displays separate the product from the sea of competitor products, make Cracker Jack stand out and seem more appealing. Impulse buyers may be attracted and will buy on a whim. Media Strategy #1: Set-up Point of Purchase Displays strategically across United States catering near metropolitan areas where millennials tend to inhabit. Approximate Media Cost: Cost for Trade Promotion = $364,340

• Cost for representatives = $364,000

• $70 per day in 10 stores across 20 states for 26 weeks • $70 = $10.00 hourly wage for representative, working 7 hours • Sampling will be on Friday, Saturday, and Sunday

o Based on Time Use Institute report, these three days are busiest for grocery shopping, meaning higher probability our target consumers will be shopping

• Distribution cost = $340 o $1.70 x 200 o $1.70 manufacturer price (manufacturer price = 10% of wholesale price) o wholesale price = $17 for box of 24 packets o 200 = 10 stores x 20 states

Price for Cracker Jack Samples = $8,840 • Based on manufacturer price = 10% of wholesale price = .1($17) = $1.70 • Bags used per day in each store = 24 • Each box of 24 costs $17

IMC Objective #3: Convert 15% of one time buyers into repeat purchases during year 1. Challenges What specific challenges do you face to achieve your marketing IMC objective?

• Some consumers might not like the taste of Cracker Jack and will not want to repurchase • Distribution of product is not widespread, making it harder for Millennials to actually go

out and locate product itself Media Objective #1: (Example: Reach 40% of target market x with advertising brand message over one year, with average frequency of 10+.) Rationale for Objective: How does this objective help you reach the IMC objective? Media Strategy #1: What media will you use to achieve the objective and how? (Example: Employ network television advertising in 6 4-week flights across the course of the year at a level of 350 GRPs. Sample programs: “Real Housewives of College Park,” CSI: College Park.” Approximate Media Cost: Media Objective #2 Inspire repeat sales through post-purchase advertising. Rationale for Objective: In order to convert one time users into a repeat purchase, Cracker Jack must engage in post-purchase advertising and conversation with their consumers. Through consumer engagement via social media, Cracker Jack can prompt customers to review the product in real time. This gives Cracker Jack the opportunity to utilize their customer service initiatives, an aspect highly valued by consumers. According to a recent study, consumers are 41% more likely to engage in repeat

purchases when a contest or sweepstakes is involved. Therefore, we suggest a similar approach for the media strategy. Media Strategy #1: Establish a new Cracker Jack Sweepstakes through online platforms. Customers will take a special code they receive from their box of Cracker Jack and fill out an online entry form found on the Cracker Jack Facebook page. This allows Cracker Jack to boost their online, social media presence while offering a high incentive for consumers to purchase their product. The grand prize of this contest will be a 3 day trip for 4 to Disney World. The idea behind this objective is Cracker Jack stands for more than a snack: it represents the connections and relationships consumers have with one another and the snack. What better place in the world to highlight family relationships that at the “Happiest Place on Earth”: Disney World. 100 runner up contestants will receive $25.00 prepaid Visa gift cards. Currently, Cracker Jack is running a “Grand Slam Sweepstakes” where you are instantly entered to win a trip for 4 to the 2015 World Series while 525 second place winners receive $10 Walmart gift cards. Note: there will be an additional way to sign up for the sweepstakes however our goal is to follow in footsteps of Coca-Cola and Pepsi who used “Specially Marked Codes” under the cap to enter a sweepstakes. Anyone who has the code may enter to win. Approximate Media Cost: Contest Prize = $7,000

• Disney Trip (Airfare, Hotel, Food included) = $4,500 • Visa Gift Cards = $2,500

o $25 x 100 = $2,500 Media Cost = $10,000 (Facebook sponsored posts and sidebar ads)

Recap Total planned media spending: Approximately $1.21 million Approximate share of voice: 0% currently How does that compare to LY? Only $63,000 spent on marketing in 2013 Reach and Frequency (Traditional Media)

Target Reach Frequency

Millennials using Social Media 75% 7+

Engagement (New Media)

Target # Engaged What media

Millennials on Social Media 350,000 Facebook, Twitter

Briefly describe your use of each of these media types: Media Type Description Media

Cost (x000)

% of total

Media

Rationale

TV Air 30 second advertisement of Cracker Jack’s repositioning

400 70% of Millennials said TV advertisements are the most influential marketing forms they see in regards to purchasing products.

Radio We will utilize spotify ads to engage with our new target m

100

Print

Outdoor

Internet Display

Internet Search

Social Media Facebook, Twitter, BuzzFeed

353 A method of personally engaging with the customer online, good for changing brand perceptions and initiating a connection (ex: follow, like, etc.)

Content Marketing (video, etc.)

Sales Promotion Cracker Jack Sweepstakes to Disney World with 100 runner ups

9.5

The second most popular way to inspire repeat purchase for consumers is through the offer of a contest / sweepstakes. Knowing this, Cracker Jack will create a Disney World get a way for 4 people based on signing up through their website and engaging with social media pages.

Point-of-Purchase

Sampling, Cracker Jack

373.18

Allowing our new target market to have opportunity to try our

representatives product and hopefully inspire them to purchase a box with redeemable coupon.

Events/Ambient Media

Other

2. Revised Creative Brief CREATIVE BRIEF Project Team (# and Name) Date

Team #2 - BTY Consulting 12/03/2014 Brand What is the name of the brand? PepsiCo/Frito-Lay Product/Service What is the product called? Cracker Jack What does it do?

• Caramel-coated popcorn and salted peanuts snack. • Function: Snack Food • Weight: 200 grams • Cost: $1/box • There is a prize inside the box, currently a paper envelope that can be folded to reveal a

face. The prize functions as a “pencil topper” (the consumer would hang it off a pencil). • Many consumers are disgruntled that the prizes are no longer as “fun” as they used to

be. Before there were tiny figurines and toys, but now the prizes are just paper. Marketing problem communication must help solve

• What is the marketing (sales, mkt. share) purpose for the communication? • Get Millennials to try, purchase, and repurchase Cracker Jack. • Reach 10% of target market in 1 year. • Increase market share of caramel popcorn by 3% in 1 year.

Form What form(s) will this communication take—print, radio, TV, etc.

1. Social Media Content (Facebook, BuzzFeed) 2. Video (TV) 3. Radio Advertisement (Online Radio, Spotify)

Target Audience: To whom is/are the communication(s) directed?

• Millennials, especially those on social media. • 89% of Millennials are active on social media. Millennials are also the most frequent

consumers of snack foods. Men are more likely to purchase salty snack foods, but women are more likely to purchase snacks in general. Millennials purchase snacks that are inexpensive, convenient, have unique tastes, and are a good value.

Communication Objective What can the communication(s) accomplish to help solve the marketing problem?

• Raise awareness • Increase pool of potential buyers • Increase first-time users • Encourage repeat purchasers

Competitive Environment: • Direct Competitors: Poppycock, Crunch n Munch • Indirect Competitors: Orville Redenbacher, Act II, other pop-at-home brands, snacks in

general (pretzels, chips) • Messages:

o Poppycock: “gourmet popcorn snack” o Crunch n Munch: “munchably sweet”

• Competitors have done no advertising in recent years • Competitors have similar popcorn flavors -- caramel popcorn has many parities.

Point of Difference How exactly is the product/service better than others, from the customer’s viewpoint? We are focusing on how the product has a long, iconic history. Cracker Jack is over 100 years old and is heavily associated with baseball, the ultimate American sport. Cracker Jack is a legendary snack, and if people consume Cracker Jack they will become a part of the legend as well. Key Insight Is there one important piece of information or idea about how the brand connects with the customer that will make this/these communication(s) successful?

• Many customers connect the brand with baseball/sports/family events (good memories). The product has a high, generally positive recall.

• The prize inside adds a generally fun and exciting moment every time someone opens a box of Cracker Jack.

• Our target market, Millennials, is constantly on social media and their Smartphones. Millennials value old, “vintage” things because they view them as novelties. There is a deep sense of nostalgia amongst Millennials that we can potentially exploit (ex: #UOxLisaFrank, Nickelodeon “The 90’s are All That” programming block, Pepsi Throwback).

Positioning Claim Complete: To (target customer), (client’s product/service) is the (competitive frame) that delivers (benefits). To Millennials, Cracker Jack is something they are aware of but may have never tries. Millennials know that Cracker Jack exists and it is an old snack, but they are unaware of the long, iconic history behind it. Millennials may associate Cracker Jack with baseball, family, and connection -- positive memories. Cracker Jack is the snack that can make Millennials feel like they are taking part in a grand history if they eat it. Support What specific facts and perceptions support the positioning claim? Prioritize as key messages.

• Mintel Report: popcorn represents the second most popular segment among consumers 18-37; our target demographic (18-33) is included in this age range

• popcorn represented 9.2% of category sales in 2012; total U.S. retail dollar sales grew by 20% 2007-2012

• Social Media

o Millennials spend about 18 hours a day on social media o Millennials check their smartphones on an average of 45 times a day to be active

on social media o Social media are the most dominant way Millennials discover content online

(with Facebook being the most prominent) o Millennials are more willing to interact with brands on social media if offers,

deals and discounts are available • TV

o 70% of Millenials said TV ads are most influential in perceiving/valuing a particular brand

o TV ads are the least likely to be ignored by Millennials § only 25% of total population do so

o Result? Traditional advertising is still effective today and shall continue to do so for foreseeable future

o 117.4 million households in US own a television • Radio (Spotify)

o 40,000,000 people use Spotify, only 10,000,000 (25%) are paid users who would not see/hear any advertisements

o The average Spotify user spends 164 minutes per day listening to music (~2.73 hours)

o 2/3 shares on Spotify extend through different social media platforms. People are sharing their Spotify content on Facebook, Twitter, and Tumblr, proving that Spotify users are connected via social media.

o There is a positive association between music and brand associations. Conclusions:

• SOCIAL MEDIA is an effective way to reach Millennials o Millennials spend a lot of time on social media on their Smartphones.

• The POPCORN MARKET has a lot of growth potential. • POPCORN is a popular snack amongst Millennials. • Despite the Millennial’s affinity for social media, TV AND TRADITIONAL

ADVERTISING are still effective. Communication Tone/Personality What tone/look should the communication(s) have to be effective? What personality? The communication should have a classic feel that portrays Cracker Jack as a “blast from the past” and an interesting, classic snack. The designs should not feel antiquated. The product should be portrayed as iconic. Cracker Jack is a legendary snack. Consumer Action What can we expect the target customer to think/do if the communication(s) are successful? If our communications are successful customers will view Cracker Jack as a “legendary” snack, and they will want to consume it in order to be a part of the legend as well. Measurement How will we know if the communication(s) is/are successful? Any objective measurements?

• Social media measures (Facebook likes, shares, number of views, etc.) • Increases in revenue, sales, production, etc.

• The number of people who have tried sampling in our stores. Through the social media measures especially we will be able to get an idea of who our new followers are -- age, gender, other demographics. If we are successful, our new followers will be Millennials. Related Communication What communication has been done in this or other media for this product/service?

• There is a Cracker Jack Facebook page with minimal content and a small following (117,837 likes).

• PepsiCo also debuted a new Cracker Jack float in this year’s Macy’s Thanksgiving Day Parade, focusing on the “surprise inside” and retro themes.

Executional Mandatories Specs, logos, tag lines, colors, phone numbers, email addresses, web site addresses, etc.

• Visuals: red, white, blue, Sailor Jack logo, same typeface for logo • Nutrition: cannot change recipe, same serving sizes, same amount of product per package • Misc.: same labels (phone numbers, website, etc.)

3. Creative 3A: Box Re-Design (Mock-Up)

3B: Coupon

3C: Facebook Post

3D: Twitter Post

3E: Instagram Post

3F: BuzzFeed Post

3G: Spotfiy Ad – Visual

3H: Spotify Ad – Copy Client: PepsiCo/Frito-Lay Product: Cracker Jack Title: Be a Legend Length: 15 seconds Writer: Isabel Tzeng Medium: Radio/Online/Spotify

MUSIC: MUSIC BEGINS. IT IS DRAMATIC, BUT FAIRLY QUIET. ANTICIPATION BUILDS FOR 3 SECONDS.

NARRATOR: Few things live beyond a century. The centennial is an unbelievable feat for

most. Those who have reached this landmark are the greats – they have survived, and

they have triumphed.

SOUND: DRAMATIC PAUSE, THEN MUSIC SPEEDS UP – BASEBALL MUSIC BEGINS

NARRATOR: Cracker Jack has played the field for 118 years and counting. Join the greats and

be a part of the legend – pick up your box of Cracker Jack today.

3I: Television Ad Storyboard

4. MediaMark Data

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Images Used in Storyboard

https://freetheegg.files.wordpress.com/2011/02/cracker_jack_box.gif http://drivethenation.com/wp-content/uploads/2013/06/Wrigley-Field-baseball1.png http://www.foodappreciator.com/wp-content/uploads/2013/09/Tokyo-Dome-Baseball-1-e1380449519450.jpg http://muskegostormbaseball.org/wp-content/uploads/baseball.jpg http://1.bp.blogspot.com/-E8Xc11P9Dj4/Ub-Ze4BLm3I/AAAAAAAAJdQ/cYk9553ZfU8/s1600/iphone+pics+025.jpg http://cbshartford.files.wordpress.com/2011/07/53228901.jpg http://www.d41.org/teachers/uploads/hshumate/poetrywebquest_5-11/media/crack.png http://www.boston.com/community/photos/raw/Local_Baseball_Game.jpg http://www.disneyfoodblog.com/wp-content/uploads/2012/04/cracker-jack-inside.jpg