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2015 – 2016 American Marketing Association
Collegiate Case Competition
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TABLE OF CONTENTS EXECUTIVE SUMMARY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
SITUATION ANALYSIS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 - 8
Company Background . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Product Background . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 - 5
Competitive Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
SWOT Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 - 8
MARKET RESEARCH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 - 11
Focus Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 - 9
Survey . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Taste Test . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
OBJECTIVES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 - 16
Marketing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Financial . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Target Market . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 - 13
Positioning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 - 16
MARKETING TACTICS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 - 19
Integrated Marketing Communication Plan . . . . . . . . . . . . . . . . . . 17 - 19
Pricing Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
Distribution Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
MEASUREMENT and EVALUATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 - 21
APPENDIX A: Focus Group Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
APPENDIX B: Survey Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 - 28
APPENDIX C: Taste Test Data . . . . . . . . . . . . . . . . . . . . . . . . . . 29 - 30
APPENDIX D: Timeline and Budget . . . . . . . . . . . . . . . . . . . . . . . 31 - 32
APPENDIX E: Sales Forecast . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
APPENDIX F: References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
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EXECUTIVE SUMMARY
Hitting the market in April of 2015, Ice Breakers Cool Blasts Chews, by The Hershey Company is an unparalleled alternative for fresh breath. With the current decline in demand for gum, Cool Blasts Chews offer convenience, instantaneity, and effectiveness. Being a product unlike any other on the market, multiple above-the-line advertising tactics will be used to drive awareness, interest, and trial. The plan focuses on the sheer uniqueness of the product, driving consumer engagement and awareness to prompt sales. Targeted demographics for Ice Breaker Cool Blasts Chews include the 18-24 year old and the 29-34 year old segments, young adults and business professionals. With consumer preferences shifting away from gum, Cool Blasts Chews have momentous potential being the only product of its kind in the market. Furthermore, primary and secondary research was conducted and analyzed in regards to current consumer preferences and trends towards mints, gum, and the new Cool Blasts Chews. This comprehensive marketing plan works to competitively position Cool Blasts Chews within the marketplace to obtain a 7% to 8% increase in net sales after one year. Essentially, Cool Blasts Chews are entirely capable of becoming a market leader in the breath freshening category.
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SITUATION ANALYSIS
Company Background Established in 1900, The Hershey Company has stood the test of time and emerged as North America’s leading manufacturer of chocolate and non-chocolate candies. Notably, Hershey is a part of the $80 billion snacking industry with 41% of sales attributed to the “candy, gum, and mint” (CMG) marketplace (AMA Case, n.d.). In 2015, Hershey’s held more CGM market share than its key competitors, Mars and Wrigley. With top-brands such as Hershey, Reese’s, Kit-Kat, Jolly Rancher, and Ice Breakers, the Hershey Company is a major player in today’s marketplace.
Acquired by The Hershey Company in 2000, Ice Breakers is the company’s flagship gum and mint subsidiary (AMA Case, n.d.). Over the past 15 years, Ice Breakers products have captured consumers with their experience-enhancing “cooling crystals” and sugar-free composition. These traits, along with their well-developed product lines—Ice Breakers Mints, Duos, Sours, Frost, and Ice Cubes (gum)—and over fifteen different flavor offerings make the brand appealing to a wide range of consumers. This well-developed portfolio coupled with the strong brand name has made Ice Breakers a market leader in mint production and also paved the way for new innovations such as Cool Blasts Chews.
Product Background
A combination of price hikes, exhausted flavor options, advertising budget reductions, and consumer lifestyle changes have all driven gum sales down more than 11% in recent years (D’Costa, 2015). More interestingly, market forecasters predict gum sales to drop another 11% by 2019 (D’Costa, 2015). This decline opened the doors for Ice Breakers to intrigue and acquire this lost demand with a new product different from gum and different from mints. In April 2015, Ice Breakers released an unparalleled alternative for freshening breath—Cool Blasts Chews. This product not only meets the current consumer demands of convenience, instantaneity, and effectiveness, but it also creates a competitive advantage with its unique discretion. Unlike present gum and mint offerings, Cool Blasts Chews dissolve within a few chews and avoids the unattractive noises, visibility, and inconvenience of endurance and disposal found in traditional gum and mints. However, Cool Blasts Chews provide the same,
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long-lasting flavor intensity as (if not more than) its industry counterparts. Notably, these qualities differentiate Hershey’s from the market leader, Mars, and the other market participants. Competitive Analysis Throughout the past five years, Hershey’s has positively increased revenues 1-10%—even when the industry exhibited decline. In fact, in 2012, 2013, and 2015 the Candy Production industry saw negative growth but Hershey’s grew revenues 9.3%, 6.3%, and 1.9% respectively (D’Costa, 2015). The five-year outlook of the Candy Production industry indicates improvement due to growing consolidation and innovation by major players and the rising disposable incomes and the expanding youth population to drive sales. While gum sales may see a significant decrease, the industry as a whole will adapt and endure the changing times. Moreover, the “candy, mint, and gum” (CMG) market is the largest segment of the $80 billion U.S. snacking market with 41% share (AMA Case, n.d.). Divided into two segments—chocolate and sweets and refreshment—Ice Breakers falls under the sweets and refreshments category along with Jolly Ranchers, Twizzlers, and Bubble Yum. Notably, the Hershey Company leads the CMG market at 25% market share followed by Mars at 16% (AMA Case, n.d.). With that, Ice Breakers leads the mint mini-market at 41%, which is nearly twice the market share of the second largest mint producer, Ferrero Mint and their feature brand, Tic Tacs (AMA Case, n.d.). While Ice Breakers holds the majority of market share in the mint industry, this Ice Breakers Cool Blasts Chews is in a breath refreshment category of its own, making it imperative to promote awareness, interest and trial of the product.
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Ice Breakers SWOT Analysis
Strengths
• Effectively freshens breath • Contains trade mark Ice
Breakers “cooling crystals” • Offered in two highly appealing
flavor options • Does not require the need to
dispose of the product once applied
• Novel product-new subcategory of refreshment
• Innovative and unique packaging
• Sugar Free product • Strong parent company:
Hershey’s • Recognizable brand: Ice
Breakers
Opportunities
• Declining gum sales lead to strong opportunity for new product introduction
• Market leader • Possibility for introducing new
flavor options • Large target market • Strong relationships with
retailers and wholesalers
Weaknesses
• Undesirable texture of the product
• Lack of product awareness • Environmental concerns for the
thick plastic packaging • Container difficult to use while
multitasking
Threats
• Competitors making a similar product
• Highly saturated market for breath freshening products
• Limited shelf space • The need for product
clarification: neither a gum or mint
Internal Analysis
Ice Breakers Cool Blasts Chews are the newest addition to the Hershey’s product portfolio. Notably, Cools Blasts Chews are supported by the strong, recognizable brands of both Ice Breakers and The Hershey Company. Ice Breakers has launched several successful campaigns in the past, thus, Cool Blasts Chews can utilize this well-known brand name to their advantage. This strong brand identification allows for enhanced consumer perception of a trusted breath freshening product.
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Strategically, Cool Blasts Chews combine the most favorable breath freshening qualities of gum and mint products to form an innovative hybrid. Cool Blasts Chews are designed to dissolve in seconds, leaving consumers with a powerful, long-lasting taste. Similar to a mint design, there is no need to dispose of the product once consumed—an attractive attribute to the busy lifestyle consumers seeking convenience. Furthermore, Cool Blasts Chews are currently offered in two highly popular, refreshing flavors options consisting of Peppermint and Spearmint and then the soon-to-be released Wintergreen flavor in December 2015. The sugar-free aspect is held to be an important element in purchasing decisions as it aligns with the values of health-conscious consumer. Curiously, the packaging of the Cool Blasts Chews is perceived as both a strength and weakness to the product. The differentiated product design allows Cool Blasts to stand out in the highly competitive gum and mint market and millennial consumers may be drawn to the sleek, sliding package design. However, the pullout tray has already posed to be an issue for consumers when opening with the wrong side facing up and with the tray being difficult to open; both of which have caused the product to unexpectedly fall out. Additionally, the container of Cool Blasts Chews is a composed of a Polypropylene plastic (PP), meaning that it is recyclable according to the Environmental Protection Agency standards (“U.S. EPA,” 2015). While it’s beneficial to the environment to offer a product in a recyclable container, it’s unlikely that consumers will observe the recycling symbol because it is partially covered by the plastic wrap and in turn, will not recycle the Cool Blasts Chews package. External Analysis
Without a doubt, Ice Breakers Cool Blasts Chews have momentous potential being the only product of its kind in a major market. For example, as consumer preferences shift away from gum, Cool Blasts are then supported by the non-gum qualities of the product. Therefore, Cool Blasts Chews are granted the potential to pick up on the losing demand from gum sales (which has been evident in recent years). Not to mention, the product currently offers two (soon-to-be three) flavors. This minimal flavor offering translates to tremendous opportunity for new flavor options such as cinnamon or a fruity-mint (similar to Ice Breakers Duos). Moreover, in a market as saturated and competitive as the CGM, threats are inevitable. Perhaps the biggest threat is the market itself. The CGM market is well established and already offers a variety of flavored breath fresheners. It’s also a convenience product market, meaning that consumers don’t put as much thought into purchases compared to a more expensive product. Essentially, interest and trial of Cool Blasts Chews is further challenged due to these market characteristics that make penetration difficult. Secondly, while Ice Breakers Cool Blasts Chews are presently the only gum-mint hybrid in the CGM market that is not to say other
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companies (especially Mars) will not develop a similar product in the future. As Cool Blasts Chews gain popularity, so will the appeal to compete with such a profitable product. Lastly, because this product is one-of-a-kind it imposes an additional challenge to penetration—explaining what it exactly is. Consequently, with the lack of comparisons, the best way to describe Cool Blasts Chews is as “not a gum, not a mint” but both. Fortunately, Ice Breakers has already adopted this message in their promotional campaigns, but it is critical this message is streamlined in every promotional message to prevent confusion among potential consumers.
MARKET RESEARCH
In an effort to better understand the trends and key characteristics of the chewable mint segment, primary research was conducted through three different vehicles. The first conducted was a focus group, the second, a survey, and the third, a taste testing.
Focus Group Two focus groups were conducted in a controlled classroom as a moderator led an open discussion structured by questions that engaged participants. The first group consisted of 11 subjects and the second group consisted of nine subjects resulting in an overall population of 20. The age range of these students fell between 18-28 years; an age range that falls within the targeted 18-34 year old millennial segment. The main objective of this focus group was to open up a conversation between subjects to gain insights as to how Ice Breakers is perceived by this age group, in addition to touching on any perceived strengths and weaknesses. The moderator presented ten questions that stimulated open dialogue amongst the subjects—providing moderators and auditors with qualitative data. After reviewing the recorded session, several key takeaways were revealed. The first discovery was an extreme lack of product awareness; 85% of participants have never heard of Cool Blasts Chews. The second revelation was 90% of participants preferred gum over mints. The third major takeaway from the focus group was that the participants primarily consume gum or mints out of habit, to focus, or to enjoy after a meal to freshen breath. The staggering percentage of participants unaware of Ice Breakers Cool Blasts Chews accentuates the need for a new market strategy focused on enhancing advertising and promoting the key features of the Cool Blasts Chews.
When participants were asked to share their perceptions of the Ice Breakers Cool Blasts Chews’ packaging, there was unanimous dislike. Participants commented
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that they liked the creative idea behind the sliding package, however they believed it was too complex for such a simple product. With respect to the design of the package, consumers are required to open the packaging lying flat and right-side up and must look at the entire package to ensure it will not open it upside down. Many participants commented that they would be unable to reach into their backpack to quickly grab one out during class, and would also be unable to get one while driving without becoming distracted. Overall, most participants feared they would slide open the package upside down causing the dissolvable chews to fall out. Additionally, the focus group remarked the amount of plastic used to contain the product seemed excessive. On the other hand, they agreed this type of package would be advantageous to use as a storage container for future use. Lastly, the size of the package was referred to as “bulky.” Cool Blasts Chews may not be a product consumers can easily keep in their pockets along with other accessories and still feel comfortable. When participants were asked to rate how they rate the packaging on a scale from one to ten, (1 being dislike), the average rating was 6.5.
Another revelation in regards to packaging was that while the packaging has a new creative design, it may not stand out in an aisle. The participants discussed how the rectangular container would easily blend in amongst the plethora of square or rectangular packages. Additionally, the blue and white wrapping is nearly identical to almost all other gum and mint brands. As a whole, the participants felt the product may blend in with other products within the segment.
Another conclusion was gained from the question posed to the group: “Have you ever tried an Ice Breakers product before?” Curiously, all of participants were aware of the brand Ice Breakers and had consumed an Ice Breakers gum or mint product. None of the participants presented negative opinions towards Ice Breakers (in fact, some stated that it was their favorite brand). Additionally, 100% of participants recalled the Ice Breakers mint “to share” circular container. All expressed their liking towards this particular product as well as packaging design. Essentially, through conducting a focus group, an understanding was gained on participants’ awareness of and attitudes toward the Ice Breakers brand and familiarity with new products.
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Survey
With an abundance of qualitative information collected from the focus group, an online survey was administered to support findings with quantitative data. The objective of this survey was to uncover consumer’s feelings on gum and mint flavor and packaging preferences, brand loyalty, and purchasing habits. The survey was created and distributed to college-aged students and family members resulting in a response rate of 17.8%, (98 respondents in total). The demographics of the respondents are as follows: 22% of respondents were male and 78% female, 17.39% of respondents fell between the ages of 16 and 19, 33.70% were aged 20-21, 11.95% were 22-23, and 36.96% were 24 and older. Please refer to Appendix B for survey data figures. In order to uncover the target market’s feelings on gum and mint flavor preference, the survey directly asked, “Which flavor do you prefer most?” The results exhibited ‘Wintergreen’ (40.63%) and ‘Spearmint’ (38.54%) as the two most desired flavor options. ‘Peppermint’ ranked third with 16.67%, while ‘Cinnamon’ and ‘Fruit’ tied at 2.08%. There was an overwhelming preference of mint flavor over fruit, which shows Cool Blasts Chews are meeting target consumer needs by offering these flavors options. Several questions were asked with ambition to obtain a greater understanding of consumer purchasing trends. The results disclosed the most important factors in determining which mint or gum product to purchase as flavor followed by price, brand, convenience and accessibility, sugar-free, and environmentally friendly (percentage results shown in Appendix B). When asked which brand of gum the participant was most likely to purchase, a large gap was found between Wrigley’s Extra and Ice Breakers. In fact, 31.25% of participants prefer Extra gum products versus 5.21%, which prefer Ice Breakers gum. However, Ice Breakers was the most preferred mint brand, with a share of 45.36%. Life Savers was the runner up with 24.74%. Ice Breakers can use these findings to their advantage, as the new dissolvable Cool Blasts Chews resemble a mint. In regards to packaging, the results displayed the most effective tactic in persuading customer purchases to be store placement (58.76%) and then packaging color (45.36%). These two percentages emphasize how placement in the store and color of the package are what Ice Breakers needs to prioritize. Cool Blasts Chews would bode well placed in checkout lines, beginning of isles, or even placed throughout the store. Additionally, the blue packaging must be accentuated to further differentiate from similar competing products. With a new, bolder label, Cool Blasts can gain a competitive advantage through differentiation.
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Taste Test With the previous research completed, an in-depth analysis of mint products, involving taste preferences was conducted. A total of 31 participants were divided into three groups. Each participant was given three different breath freshening products, consisting of Ice Breakers Cool Blasts Chews, Mentos Chewy Mint Candy and Breathsavers (shown in Appendix B). To best maintain consistency, all products were of ‘Peppermint’ flavor. A questionnaire containing a series of open-ended questions was distributed to each participant for tracking their thoughts and opinions. The survey received 31 completed responses. The first part of the questionnaire asked participants to record what they liked and disliked about each product. More specifically, participants were asked to rank the products, (with one being the best and three being the worst). They were also asked to record their responses to six different questions after sampling each product. These questions included the following:
• “What was your first reaction when trying this product?” • “What three words would you use to describe this product?” • “Do you think you would purchase this product?” • “If not, what would you change in
order for you to purchase it?”
Overall, participants thoroughly enjoyed the immediate freshness that Cool Blasts Chews offered. They also appreciated the “coolness” of the product (nine participants mentioned this phrase after sampling the product). Eleven participants reported enjoying the flavor of the Cool Blasts Chews. Perhaps one of the most interesting taste test findings was that 10 participants liked how fast the product dissolved and nine participants disliked the fast dissolving factor. Additional comments depicting the product in a negative light included “it was too strong,” “it was painful,” and “bad texture.” The most common words to describe the participants’ first reactions were related to the strength of the product’s flavor such as “minty, cold, and intense.” In Appendix B, the levels of satisfaction among various attributes can be reviewed. Overall, 54.8% of participants reported they would purchase the product. With the given data, Ice Breakers should consider focusing efforts on reformulating the product to a flavor fractionally less “intense.” Notably, many participants complained the product was so intense that consumption was almost painful. Cool Blasts Chews are incredibly unique and not something the participants have ever tried before. As a result, moving forward it is imperative to position the product using definitive terms to clarify the characteristics that differentiate Ice Breakers Cool Blasts Chews.
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OBJECTIVES
Marketing It is the goal of the integrated marketing plan to generate interest, awareness and trial of Ice Breakers Cool Blasts Chews. The marketing plan must identify the most appropriate markets equipped with the highest intent to purchase the Cool Blasts Chews. The plan was developed through thorough exploration of the designated target markets, positioning, and strategy efforts. The strategy must accurately and efficiently differentiate Cool Blasts Chews in a highly saturated breath freshening category. Ice Breakers must accentuate the special features of this hybrid, dissolvable product and for heightened success; Ice Breakers must utilize effective promotional mediums to strengthen brand exposure and favorability. Financial
• Strengthen sales as well as allotted retail space for Ice Breakers by growing the presence of the brand through the introduction of Ice Breakers Cool Blasts Chews.
• Successfully penetrate the market with the new breath freshening product subcategory known as “chews.”
• Promote goodwill in communities nationwide while promoted Ice Breakers Cool Blasts Chews.
• Recover and improve declining sales forecast estimates for The Hershey Company.
Target Market
Millennials, or individuals born between 1980 and the mid-2000s are the largest, most diverse generation in the U.S. today (“15 Economic Factors,” 2014). Millennials are characteristically interested in technological advances, free expression, people they can relate to, making connections, and value in their purchases (Hyder, 2014). The Ice Breakers brand already effectively sells to the Millennial Generation, ages 18-34. With that said, Ice Breaker Cool Blasts should continue being marketed to the product’s original target market of 18-24 year olds, and then additionally to the higher-earning millennials of 29-34 years old to maximize the sales of their new product offering. Furthermore, sales of Ice Breakers Cool Blasts will be driven by actively engaging target consumers on the platforms most effective for millennials ranging from digital to social media to in-store samples. Essentially, by appealing to the millennial values of connection, expression, and value in the marketing campaigns, this product will resonate well with consumers when entering the market.
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The target consumer’s psychographic traits include high sociability, concern about what others think of them, and are classified as “trendsetters” or “influencers.” These characteristics will prove quintessential when supporting word-of-mouth marketing and influencing (followers) to purchase Ice Breakers’ new product, Cool Blasts Chews. With consideration to the secondary target consumer, the typical business professional in the 29 to 37 year old age group is likely to have a hectic schedule filled with meetings, interviews, work-related events, and countless social gatherings. This consumer values convenience, style, and effectiveness. However, this consumer also does not regularly consume Ice Breakers products. It’s imperative to heavily market to this consumer to show them perfect fit it has in their busy lifestyle. The biggest challenge will be reaching the consumer. Once the consumer has tried and enjoyed the product, the consumer’s steady income and demand for a product as such will drive steady sales for Ice Breakers Cool Blasts. Positioning
Positioning of Cool Blasts Chews must synthesize differentiation and effective reach of the target market. Both targeted age segments must be considered when developing an effective positioning strategy. The Ice Breakers’ creative plan takes into consideration specific preferences and stimulants associated with each segment. Ice Breakers currently operates under a strong, recognizable brand name and therefore, already has a strong consumer following. The Ice Breakers brand and trademark ‘cooling crystals’ are emphasized, ensuring quality consistency. It should require little persuasion for loyal Ice Breakers customers to trial the new Cool Blasts Chews. While continuing to maintain the loyal customer base, Ice Breakers must also position the strategy to gain a new consumer following. The highly innovative, differentiated essence of the Cool Blasts Chews will spark interest in previously unattained consumers. Cool Blasts Chews are positioned as being neither a gum nor a mint. To divert uncertainty, both the packaging and advertising message must provide clarification. The positioning strategy will highlight the convenience of the rapidly dissolving Cool Blasts Chews. Fundamentally, Cool Blasts freshen breath in a fraction of the time needed when consuming other competing products. The creative campaign will depict various situational examples of when speedy breath freshening is necessary. While a spokesperson can be helpful in establishing an identity for a new product, it does not seem fitting for Ice Breakers Cool Blasts Chews. Rather than highlighting celebrity support, the strategy suggests the use of an ordinary actor who emulates the life of a typical consumer. This will position Cool Blasts in a highly relatable manner to induce familiarity with the target consumer.
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Strategy Ice Breakers has hit the market with their “most innovative product yet” (“AMA Case,” n.d.). Ice Breakers Cool Blasts Chews are breaking the industry standards with a whole new way to freshen breath. Cool Blasts are a truly innovative product within the highly saturated breath freshening category. As the Cool Blasts Chews tagline states “Not a gum. Not a mint. A breakthrough in cool” (“Our Story,” n.d.). While it is important to address the newness of the product, we must also maintain the core competencies of both parent brands. The strategy of this new product offering will continue to encompass both The Hershey Company and Ice Breakers’ core values and quality product assurance. Under these two strong, well-known brand names, the Cool Blasts Chews will efficiently penetrate the market. However, since the product is neither a gum nor a mint, consumers may be left with some uncertainty of what the Cool Blasts Chews actually are. The effectiveness of the advertising campaign is a crucial aspect to the overall marketing strategy. The advertisements must be done in a way that incorporates entertainment with easily understandable content. Ice Breakers has already released several short commercial advertisements that introduce the Cool Blasts Chews’ benefits and qualities. The ads lay out the differences between the Cool Blasts and other normalized gum products.
The Ice Breakers Cool Blasts Chews packaging is one of the many facets differentiating it from competing products. The sleek, sliding tray design allows for total visual and aesthetic access to the dissolvable chews. While maintaining the plastic tray design, it is suggested that Ice Breakers re-vamp their current label to command more attention on a shelf amongst other gums and mints. A label redesign was conducted in response to the focus group findings. Suggested changes consist of coloring, wording and overall label design. The signature blue and green color palette will remain as the primary color to the central explosion coupled with black lowlights. Adding black to the label illustrates a higher contrast, and an overall stronger visual with the more dynamic exploding feature. Additionally, altering the text on the packaging to read “24 Dissolvable Chews” allows for greater product clarification. The word ‘dissolvable’ informs the consumer that Cool Blasts are not a typical gum product, creating interest.
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Advertising via television commercials has proven great success through past campaigns. Ice Breakers will develop three situational based commercials depicting day-to-day experiences held by the current Millennial Generation. The suggested situational settings include at work, on a date, and the first day of college. Varying by setting, a lead male actor will demonstrate situations where it would be socially awkward to have bad breath. This instills a sense of familiarity and fear within viewers, urging them to be prepared in situations such as the ones being presented. With Cool Blasts Chews, consumers will never be unprepared to combat bad breath. The first of the three-part commercial saga will kick off the campaign in April through May of 2016. The “Time Is Money” commercial features the male lead as he has just been informed of an important business meeting. It's the CEO accompanied by the firm’s three first-year sales representatives, all-fighting to have their proposal not only heard, but also chosen. There are several options on the conference table before the presentations start: mints, gum, and Ice Breakers Cool Blasts Chews. Suddenly the CEO asks for any of the reps to provide a proposal, but unfortunately the gum chewer doesn't have anywhere to spit out their gum and the mint sucker cannot produce a word. Fortunately, the lead male representative has chosen the Cool Blasts Chews, presenting flawlessly, as the CEO applause's his bravery. The second commercial, “Fresh Breath 101” focuses on campus “syllabus week,” following the male lead through his first day of classes. The commercial will begin airing mid-way through the month of July 2016 until the end of August. “Have an Ice Breaker before your icebreakers!” Syllabus week is characterized by meeting an array of new classmates while participating in ice-breaking activities for what seems like 17th time that week. Traditionally, it is do-or-die so one of the only things you have under control is your breath. Pop in an Ice Breakers Cool Blasts Chew so you're not that annoying gum chomper, popper, or snapper and please avoid being the mint sucking mute. You can win syllabus week! The third and final commercial in the saga, “Dream Girl” will begin playing in January through February 2017. The male lead is seen walking through the mall with a friend, snacking on his jumbo garlic pretzel. When all of a sudden, a beautiful woman catches his eye. The male lead turns to his friend and says he must meet her. His friend is instantly hit with the powerful garlic breath, and replies, “not with that breath you aren’t.” He comes to the rescue as he conveniently had with him a pack of Cool Blasts Chews. The male lead continues on to score a date for Valentine’s Day. “Cool Blasts Chews, the difference between a ‘yes’ and a ‘no.’” A focal point for the Ice Breakers’ strategy is inducing trial within the consumer base. Inducing trial can be done using several strategies, however, the most effective has proven to be sampling. Sampling allows for consumers to try small
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amounts of the product without incurring a cost. More or less, taste testing is essential for consumers to fully grasp what makes Cool Blasts Chews different. Promotional sampling will be implemented through Target retail stores across the United States. Since the introduction of Cool Blasts Chews, Target has reflected an impressive $716,470 in sales (“AMA Case,” n.d.). Target has 1,799 retail stores throughout the nation, with over 1.2 million daily visitors (“Target Stats,” 2015). Of those visitors, 29% fall within the age range of both suggested target markets. Target is perceived by consumers to offer high-quality products as well as customer service. During the month of June in 2016, Ice Breakers will distribute an estimated 1,300 product samples to each U.S. Target location. These specified product samples would contain two Cool Blasts Chews within small, flexible packaging. The samples Indicated in the ‘Marketing Budget’ (Appendix D), Ice Breakers will allocate $245,000 towards product sampling. The month of June was selected due to the heightened amount of free time experienced by our target market of 18-24 year olds. The combination of busy consumer traffic and high quality product offerings makes Target an attractive sampling outlet. As part of the strategy design, Ice Breakers Cool Blasts Chews will sponsor the Special Olympics by allocating $1 million towards sponsoring three Polar Bear Plunge events. Sponsoring Polar Bear Plunge is consistent with the buzzwords associated with Ice Breakers Cool Blasts Chews, as learned from the taste test results. Most importantly, concept of The Polar Bear Plunge, breaking ice and jumping into freezing waters, correlates seamlessly with the Ice Breakers’ brand name. The three major event locations will take place in Chicago, Illinois; Madison, Wisconsin; and Annapolis, Maryland. Although registration isn’t required for the event, last year, over 50,000 individuals participated in just the Chicago, Illinois Polar Bear Plunge alone (“2014 Annual Report,” 2014). Characteristically, the Polar Bear Plunge events take place in early January. Promotional efforts to encourage followers to donate and participate will begin during the month of October 2016. At the event, Ice Breakers’ booth space will provide promotional giveaways and samples of the Ice Breakers Cool Blasts Chews. The promotional items will consist of towels and gloves, featuring the Ice Breakers Cool Blasts Chews’ logo. In addition, the booth will provide free peppermint hot chocolate to participants taking part in the Plunge. Event sponsorship of a highly supported Special Olympics event is a lucrative form of advocacy advertising. This sponsorship will provide positive publicity, strengthening of the overall image and consumer perception of the Ice Breakers brand.
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MARKETING TACTICS
Integrated Marketing Communication Plan
In order to effectively reach to the 18-24 and 29-34 age groups, it’s necessary to utilize a wide range of marketing tactics. Some key advertising approaches for the millennial generation are as follows:
• Social media advertisements and campaigns • Search engine marketing • Television advertisements • Internet radio spots • Promotional pricing and coupons
The implementation of these strategies allows for more direct and efficient marketing and additionally promotes for heightened engagement and interaction with the target consumer. Furthermore, these advertising segments provide greater opportunity to emphasize on product clarification, situational examples, flavor offerings, and even the packaging design. Needless to say, informational advertisements are the first installment of in the promotional campaign. Notably, these ads are already in use and will continue to be used through the end of April 2016, as this product requires consistent demonstration and clarification being an unprecedented product. As these ads continue to run across the various channels, the target consumer will receive greater and greater exposure and familiarity. The second segment of the advertising campaign will launch in July through August 2016. (Appendix D), showcasing advertisements that exemplify a specific life situation. In particular, these advertisements will show three different situations that highlight the advantages Ice Breakers Cool Blasts Chews has over traditional gum or mint products. To ensure consistency, these advertisements will follow one male actor throughout three typical scenarios: the first day of college, a first date, and a work presentation. Depicting situations that are highly relatable to members of both the 18-24 and 29-34 age groups allows those exposed to the ad to identify with the product and the brand. These situational advertisements will run on two-month intervals and the specific breakdown can be found in the promotional campaign timeline (Appendix D). In addition, these advertisements will be delivered primarily through television, YouTube, and other social media platforms such as Facebook. As previously stated, these advertisements are currently running on television and then Hershey’s YouTube channel (which is shared on other online media outlets). Maximizing the reach of these advertisements will be imperative to the overall success of the campaigns. While the ads differ in context, the implementation will remain seamless. Ice Breakers will run the informational and situational
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advertisements across all outlets: television, search engines, Internet radio, and social media including Facebook, Twitter, and Instagram. Not surprisingly, Facebook is a highly prioritized advertising medium for this campaign. Ice Breakers currently has 1,115,124 “likes” on their “verified” Facebook page. Notably, Pew Research reports that approximately 87% of millennials engage on Facebook (Duggan et. al., 2015). Moreover, this data establishes Facebook as a viable resource for advertising and reaching millennial consumers. Furthermore, Facebook allows advertisers to select either a “daily budget” or “lifetime budget.” Both budgets are advised to use the cost-per-click (CPC) method of costing to ensure that only those who directly engage with the ad subtract from the total budget. Most importantly, the budget amount is at full discretion to the brand and will not be exceeded. Twitter additionally offers advertising in the forms of promoted tweets, promoted accounts, and promoted trends. Promoted tweets come at an estimated cost of $0.50-$4.00 per engagement--clicking, replying, “retweeting”, and “favoriting”. It is beneficial for Ice Breakers to promote engagement and following of their brand throughout various peaks in the advertising campaign. This added exposure would drive the brand and product to generate awareness, interest, and trial of Ice Breakers Cool Blasts Chews. Moreover, YouTube is another great platform to reach Ice Breakers’ target consumer. The advertising costs on YouTube are based on an exceptionally cost effective, pay-per-view basis. Most importantly, if the viewer skips the advertisement before 30 seconds (or the end) there is no cost to the advertiser. In the event the advertisement is viewed to its entirety, the advertiser is charged $0.10-$0.30. YouTube also allows advertisers to specifically target viewers based on age, gender, location, interests and other characteristics. It is suggested that Ice Breakers Cool Blasts Chews continues to use the current “Not a Gum, Not a Mint” animated campaign videos during the 15 to 30 second time allotments on YouTube. The second implementation of advertisements, the situational focus, will follow the same strategy as the informational advertisements. Continuing to pinpoint the target consumer demographic through the same avenues will install continuity in the promotional campaign. In turn, this directed media approach allows Ice Breakers to reach current consumers of Cool Blasts Chews, as well as those who have yet to experience the product. Closely tied into both the informational and situational advertisements will be the communication of flavors. Expressing the flavor offerings to the consumer increases the overall knowledge of the product, which is critical for a new product such as Cool Blasts Chews. Currently, Ice Breakers offers Peppermint, Spearmint, and Wintergreen (coming in December 2015) in the Cool Blasts product line. Ice Breakers brand characteristically offers a variety of product
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flavors and thus, expanding the Cool Blasts Chews product line to include more flavors would align Cool Blasts better with the brand. In addition, further diversification of the flavor profile would attract distinctive and experimental consumers that value unique flavors. To better target these consumers, a fruity-mint flavor (similar to Ice Breakers Duos) will be released after the product’s one-year anniversary in May of 2016. As the weather shifts towards the summer months, the desire for a refreshing fruity mint will rise, making this an opportunistic time to launch a fun, fruity flavor for Cool Blasts Chews. Pricing Plan
Individual packages of Ice Breakers Cool Blasts Chews are typically sold through various retail outlets. Retail pricing for one package of Cool Blasts chews ranges from approximately $1.97-$2.79/package. Individual retailers have the ability to allocate varying discounts off the suggested retail price at their own discretion. The only pricing change to be experienced will be during various promotional periods. Though it is an innovative product being advertised as “Not a gum, not a mint,” Ice Breakers Cool Blasts Chews are shelved alongside chewing gum and mint products. While the Cool Blasts are not directly competing with another product, the product is offered in similar quantities to competitors’ mint products and priced in comparison. Distribution Plan
It is essential that the distribution plan for Ice Breakers Cool Blasts Chews is parallel with the overall marketing strategy. The current distribution channels for the Ice Breakers brand include retailers and wholesalers such as gas stations, as well as grocery, convenience and warehouse stores. Some specific examples include Wal-Mart, Target, Kmart, Kroger, Supervalu, CVS, Walgreens, Costco, Sam’s Club and Dollar General. In 2014, 41% of Ice Breakers retail sales were sourced from mass merchandisers and 23% from convenience stores. The venues from these distribution channels will continue to produce the majority of the revenue earned from the product but new channels with be added as the product gains market share and has greater exposure in the next 12 months. Some of these additional channels may include school stores, vending machines, and cafes. Through expanding the utilization of specialty channels (which was <1% in 2014), the Cool Blasts Chews can gain repeating customers while increasing brand loyalty because there are less mint and gum competitors in small, more local shops. By focusing distribution efforts on areas that will help the
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product gain exposure and increase its customer base, increased revenues will be generated.
MEASUREMENT AND EVALUATION
After the implementation of the IMC plan, a crucial next step will be to accurately determine the reach, efficiency, and overall effectiveness of the various marketing segments. To measure the campaign's success, all of these specific avenues will be used by through specialized metrics. These metrics will include recall testing, sales analysis, and social media analytics. Above The Line Through focusing all IMC efforts on above the line tactics, the Ice Breakers Cool Blasts Chews will have the potential to reach a larger audience and gain more brand recognition. The first metric of recall testing will be broken down into two groups. The first group will endure aided recall tests and the second group, unaided recall testing. To determine the reach of the TV commercials to be aired, Ice Breakers will contact the appropriate television networks that are airing the commercials to ascertain the number of viewers throughout the duration of the campaign. The testing will be implemented by calling a randomly generated list of individuals and asking if they watch any of the television networks that air Ice Breakers Cool Blasts Chews commercials. If the individual states “yes,” the caller will then ask what commercials they have seen on those networks within the past month. If the respondent's answer includes Cool Blasts Chews, the commercials would have successfully increased awareness of the new product. If the respondent's answer did not include Cool Blast Chews, the caller would ask if the respondent has heard or seen any recent advertisements for Cool Blast Chews. If the individual answers “yes” the advertisement strategy was still successful. Further inquiries would then be made in regards to which advertisements they have seen and enjoyed. Calculating a careful analysis of sales prior to implementation and after implementation of the marketing plan will ensure accurate measures of the effectiveness of the promotional efforts. First, the company will calculate their break-even analysis to set the bar to where the brand needs to be performing to cover production costs. Next, forecasting sales without the implementation of the marketing plan will be done. This allows the company to gain insight as to where their revenues stand without any additional costs in advertising. Following these sales projections, the marketing team is advised to calculate the break-even analysis and sales projections that take into account the added marketing costs as well as the forecasted increase in revenue. A conservative estimate of 10% increase in revenue can be used as a benchmark when looking at increase after implementation. After calculating both sets of figures for pre and post-
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implementation, Ice Breakers is encouraged to execute the marketing plan as described. Upon completion of all advertising efforts, Ice Breakers can access their financial records for the year and make direct comparisons between both projections, with and without implementation, evaluating the effectiveness of the installments. The integral part of the IMC focusing on social media is unique in respects to measurement. The majority of social media platforms provide analytic tools built in, allowing for companies to seamlessly track advertising performance without having learning a completely foreign interface. Moreover, Ice Breakers will be using Facebook, Twitter, and YouTube, platforms that have analytics functions as an added option under available to all users. An abundance of data can be collected through using these built in analytics functions, but it will be imperative that Ice Breakers focus on the key indicators of effectiveness. Primarily, since the focus of advertising on social media is to spread awareness of Ice Breakers Cool Blasts Chews and not to drive viewers to the company website, KPI’s such as conversion rate and length of time on website will be foregone. Instead, KPI’s such as reach, engagement, and impressions will be the most important areas to focus on. When viewing the ad as it exists in the mobile news feeds, desktop newsfeeds, or the right column of the desktop, creators and page managers are able to view KPI’s of reach, engagement, and impressions directly attached to the advertisement. The same holds true for when viewing the unprompted posts, the only difference is that the location will be slimmed down to the news feed portion only (Facebook, 2015). For a more in depth analysis of these KPI’s, as well as others, the company can access the added service allotted to Facebook Business Manager users. This service is known as Facebook Ads Manager. Both services mentioned are free, however, costing does occur only when the advertisements are ran and clicked on, primarily done through CPC method. Viewing the Ads Manager allows the company see what days are performing the highest, weekly spending, and other viable information to assess the ad campaign. Data found in the Ads Manager can be directly exported into documents, which can in turn be shared to the members of the marketing team, showing what has performed well and what needs to be improved on (“Ads Manager Basics,” 2015). 3-Year Sales Forecast
Over the first 3 months of being on the market, Cool Blasts Chews acquired $8,894,069 in sales (AMA Case, n.d.). The Cool Blasts campaign is expected to increase sales substantially in the first year by approximately 7%-8%. After the first year, sales are expected to fluctuate. Growth for the remainder of 2015 is expected to stay within the company’s long-term target of 8%. Sales are projected to fluctuate over the next three years as spikes in promotions vary.
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Appendix A: Focus Group Data
Exhibit 1
Exhibit 2
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Appendix B: Survey Data
Exhibit 3
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Exhibit 4
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Exhibit 5
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Exhibit 6
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Exhibit 7
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Exhibit 8
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Appendix C: Taste Test Data
Exhibit 9
Product One
Mentos Chewy Mint Candy
Product Two
Ice Breakers Cool Blasts Chews
Product Three
BreathSavers
Exhibit 10
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Exhibit 11
Exhibit 12
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Appendix D: Timeline and Budget
April 2016 – March 2017 Timeline
April 2016
• Anniversary of Cool Blasts Chews introduction • Air first produced “Time Is Money” commercial to
generate rejuvenated excitement for the Cool Blasts • 30 second commercials to be aired on TV
May 2016
• Continue to run the “Time Is Money” commercial • Continue to strengthen social media presence by
maintaining engagement through various social media platforms
June 2016
• Run promotional sampling in Target retail stores,
two chews per sample packet to induce trial throughout all U.S. Target Stores
July 2016
• Begin “Fresh Breath 101” commercial airing half
way through the month. • Promote commercial on both television and social
networking sites.
August 2016
• Continue to promote “Fresh Breath 101”
commercial during prime back-to-school shopping
September 2016
• Continue to promote school themed commercial
during prime back-to-school shopping
October 2016
• Announce sponsorship of the “Polar Plunge”
November 2016
• Boost encouragement for donations of the various
local “Polar Plunge” events
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December 2016
• Social media push for Ice Breakers Cool Blasts
Chews as ‘stocking stuffers’, and New Years kiss
January 2017
• Sponsorship of the “Polar Plunge” • Air first “Dream Girl” commercial in preparation for
Valentine’s Day • 30 second commercials to be aired on TV
February 2017
• Continue airing the “Dream Girl” commercial • Promotions on social networking sites to encourage
effective breath freshening during special dates
March 2017
• Promote social media interaction. Ask social media users where they are “cooling off” during spring break
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Appendix E: Sales Forecast
2015
$8,894,069.00
2016 Q1 Q2 Q3 Q4
2.00% 3.00% 4.00% 5.00% $9,071,950.38 $916,891.07 $924,831.76 $9,338,772.45
2017 Q1 Q2 Q3 Q4
6.00% 6.25% 6.50% 6.75% $9,899,098.80 $10,493,044.72 $11,175,092.63 $11,929,411.38
2018
Q1 Q2 Q3 Q4 7.00% 7.25% 7.50% 8.00%
$12,764,470.18 $13,689,894.27 $14,716,636.34 $15,893,967.25
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Appendix F: References
AMA Case. (n.d.). 2015-2016 American Marketing Association collegiate case competition. American Marketing Association.
D’Costa, V. (October 2015). Candy production in the US. IBISWorld.
Retrieved from http://clients1.ibisworld.com/reports/us/industry/default.aspx?entid=234
Duggan, M., Ellison, N. B., Lampe, C., Lenhart, A., Madden, M., Rainie, L.,
& Smith, A. (January 2015). Social media update 2014. Pew Research Center. Retrieved from http://www.pewinternet.org/files/2015/01/PI_SocialMediaUpdate2014_pdf.pdf
Facebook. (August 2015). Ads manager basics. Facebook. Retrieved from https://www.facebook.com/business/help/415745401805534
Hershey’s. (n.d.). Our story. Hershey’s. Retrieved from
http://www.hersheys.com/icebreakers/our-story.aspx Hyder, S. (March 2014). Here’s what you need to know about millennials.
Forbes. Retrieved from http://forbes.com
Joseph P. Kennedy Foundation. (2014). 2014 annual report. Special Olympics Illinois. Retrieved from http://www.soill.org/wp-content/uploads/2013/04/2014-Annual- Report.pdf
Target. (n.d.). Corporate fact sheet. Target. Retrieved from http://pressroom.target.com/corporate
Target Media Network (2015). Target stats. Target Media Network. Retrieved from
https://targetmedianetwork.target.com/meetOurGuests#target-stats The Hershey Company. (October 2014). Hershey announces third-quarter results. The
Hershey Company. Retrieved from https://www.thehersheycompany.com/newsroom/news-release.aspx?id=1982852
The Hershey Company. (March 2015). The Hershey Company proxy statement and 2014
annual report to stockholders. The Hershey Company. Retrieved from https://www.thehersheycompany.com/pdfs/2014_Annual%20_Report.pdf
The White House. (October 2014). 15 economic facts about millennials. The
White House. Retrieved from http://whitehouse.gov U.S. EPA. (November 2015). How do I recycle? Common recyclables.
United States Environmental Protection Agency. Retrieved from http://www.epa.gov/recycle/how-do-i-recycle-common-recyclables
