Cool Blasts Chews Marketing Campaign

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Table of Contents

Introduction…………………………………………………………………………………….page 3 Situation Analysis………………………………………………………………………………page 4 Marketing Research…………………………………………………………………………….page 7 Product………………………………………………………………………………………….page 8 Promotion……………………………………………………………………………………….page 9 Sampling & Sponsorships………………………………………………………………………page 12 Distribution……………………………………………………………………………………...page 14 Sales Forecast…………………………………………………………………………………...page 15 Conclusion………………………………………………………………………………………page 16 Appendix………………………………………………………………………………………..page 17

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Intro: After becoming aware of the situation Hershey is encountering with Ice Breakers product line extension, we decided to clearly outline the goals, constraints and target market before beginning the endeavor. Our main goals when starting this task were to increase awareness, increase interest, and increase trial. It was imperative to keep in mind the constraints we had to be respectful of requirements such as completing the project within 12 months, staying within a million dollar budget, and implementing a selection of at least 3 flavors of the product. Our target market consists of 18-24 year olds for the initial launch and 18-34 years old after the launch. The problems presented conclude that there is no clear category for the new product consistent within the Ice Breakers brand umbrella. Listed below are the plans we have to create solutions to the problems and the extensive research we’ve conducted to come to these conclusions.

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Situation Analysis:

Strengths ● Ice Breakers Brand is well known and

liked ● Packaging

Weaknesses ● Categorization of Product ● Bad reviews on sites like Amazon ● Confusion of what product is ● Lack of promotion

Opportunities ● New category of product ● Increase awareness

Threats ● Competitors

○ Mentos ● Ignorance of what product is

Strengths: Cool Blasts has many strengths that help them stand out as a product. One big strength is the fact that Cool Blasts is an Ice Breakers product. Ice Breakers is a well known brand and is liked by many. From our survey we concluded that Ice Breakers was a popular brand in both the gum and mints category. The packaging is also a strength. The packaging is very different from how gum and mints are packaged but still uses the same color scheme as the Ice Breakers brand. Weaknesses: Cool Blasts biggest weakness is its categorization. People are very confused whether it is a gum or a mint. Many people have stated that when they purchased the product they were expecting it to be a gum. The labeling of the product was confusing to them and they were not expecting the gum/mint combination that Cool Blasts is. This goes along with many of the reviews we read on Amazon about the product. The biggest complaint was that people felt like they were misconceived about what the product actually was. Other people said that the flavor was so intense that it left a burning sensation in their mouth. When we conducted our focus group we found that many people had not tried the product or even heard of the product. Cool Blasts definitely needs to be promoted more and with that promotion it needs to be explained exactly what the product is. Opportunities: One opportunity Cool Blasts has is that it can be considered an entirely new category of product. If they can enter the market as an entirely new product they can gain a threshold in this new category and become a product namesake for this category. Threats: Cool Blasts biggest threat is its competition. One of their closest competitors is mentos. While mentos does not have the “gum” aspect of their product it is a chewy mint similar to Cool Blasts. Mentos name is very well known and customers are familiar with the product however, Mentos market share is declining. Competitor Analysis:

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Based on Cool Blast’s core breath freshening function, its competitions in confectionary industry can be divided into two main types, mints and gums. Even though Cool Blast generates an obvious separation from all the competitions because it’s a good mixture of both genres, it’s crucial to identify the strengths, weaknesses, market share, target customers of adjacent competitors to improve Cool Blast and outperform others. Below is a detailed competitors identification table:

Strengths Weaknesses Target Customers

Marketing Strategies

Listerine PocketPaks

Dissolve Instantly

Explode Violently

Adults 25-39 year-old

● Drive Trials ● Movie Ads

Trident 13 Original Flavors

Easily fading sweetness

18-34 year-old ● Combines Web marketing with traditional ways.

Orbit

Chewing gum

for whitening

teeth

Side effect of

long chewing

time

Children and

youth middle

and upper class

people

● Fortune and glory Marketing plan

Extra Tuck in slim

envelope

container

not meaningfully differentiated

Youth 16-25

year-old

● Romantic Stories Advertisment

● Youtube Vidoes

Mentos Unique Shape, Chewing Fresh Mint

Brittleness Short Storage Time

Younger Market12-20 Year-old

● Funny Commercials(Mr.Chimp)

Altoids Antique Package Design

Mint size too small ,

18-28 Year old ● College Competitions

● Integrated Marketing Plan

Tic Tac Fair Price

Lack of Online marketing Plans

18-34 Year-old (Attention-

● Low price Marketing in retail

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Gradually variational Flavor Invention

Addled Youth by Promoting Change Flavor while u’r eating )

stores ● Downsize Package

to reduce price

Value Potential Competitors That Cool Blast lacks direct sense of competitors increases the possibility of similar products following Cool Blast and entering the market in the future. In order to be fully prepared when highly identical forces emerge into the future market, Cool Blasts need to reinforce its status in the current market, stabilizes its existing customer base, nurtures positive brand reputation. Our campaign ideas dedicate to shape the Cool Blast Chew to a well-known and stable brand that will push similar newborn products to a dead alley.

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Market Research: The survey conducted was distributed online and had a total of seventeen questions, two of which were demographic based (Appendix 4). The questions encompassed preferences towards gum and mints, brands of each, and whether they consumed or purchased Ice Breakers products. This also included questions specifically about Cool Blasts which prompted responses on their experiences with the product such as trial and opinion. The sample size was approximately forty-nine, based on those who completed the entire survey, and a vast majority of the sample, forty out of the forty-nine participants, were female. The age ranged from nineteen to fifty-five, however 92% of the sample were between the ages of nineteen to twenty-four, or our target market. Data collected from the survey depict that almost all of the survey sample chew gum as well as consume mints, however 77.6% of them prefer gum, which conflicts with the overall trend of the declining use of gum. The most common reason given was that it lasts longer than mints and people enjoy the act of chewing something continuously. However for the 22.4% who did choose mints over gum, did so most notably because it dissolved before it lost its flavor. When given the top brands for in the gum market (Wrigley’s, Trident, Orbit, Stride, Ice Breakers, and Dentyne), the top three brands, given in ranked order, were Wrigley’s as the most preferred, followed by Orbit and Stride. Mint brands when given in the same context (Altoids, Tic Tac, Mentos, Life Savers, Ice Breakers, and Dentyne), and the top three brands came out as Altoids as the most preferred followed by Tic Tac and Ice Breakers. Although Ice Breakers only appeared in the preferred top three for the mint category, 42.9% of the sample purchases or consumes Ice Breakers products, and out of that grouping the majority purchases Ice Cubes. Despite Ice Breakers being preferred in the mint category, the most highly purchased and consumed product is its gum product. As for Cool Blasts, only 22.4% of the sample have purchased or consumed it, however of that percentage, almost all (90.9%) of the participants reported that they enjoyed it. They described the product as “cool”, “refreshing”, “surprising”, and “chewy”. For those who had not tried the product, the overwhelming majority stated that a free give away or it being easily accessible would induce trial. The focus group we conducted consisted of 7 people with one mediator. The questions asked followed a reverse-pyramid tactic by asking more general questions in the beginning and getting more specific and detailed as time went on and the participants became more comfortable speaking and divulging their opinions. The general questions in the beginning dealt with getting the participants opinions and uses of gums and mints. From there, the questions were more specific to Ice Breakers Cool Blast. The exact questions and responses can be viewed in Appendix 6. From the responses of the focus group, it is evident the participants had less than favorable responses to the new product, Ice Breakers Cool Blast. The participants were very

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confused when first trying the product. They liked the strong minty aftertaste of the product; however, the texture was a major problem for most. They liked the packaging for the most part and one of the commercials. From the focus group we can conclude that there are clear obstacles Ice Breakers Cool Blasts have to overcome if they intend on making this product line extension a success. Product: With the release of the Cool Blasts product, we believe that the product lacks in the packaging. The customer is first attracted to the packing of any product, and the current Cool Blasts packaging is unattractive with its dull colors and design. In order for the product to be more noticeable in the store aisles and displays, change must be made to the packaging design. Instead of the bland blue and green for the peppermint and spearmint, there has to be bolder color choices that will grab the eyes of consumers. As the package currently stands, the design and color choice have no immediate impact to the consumer. For example, if we look at another product with the Ice Breakers brand, such as Mints, the packaging colors are much more vibrant and lively to catch the attention of whoever walks past them. The bright blues, reds, and greens make me want to pick up the package to see what’s inside. This does not hold true for the Cool Blasts product. In addition to the packaging design, there has to be more options for the number of packs to purchase at a time. In comparison, gum products are often sold in three to nine packets per bundles so that consumers can buy in bulk to save money. We suggest a sale promotion of a multi-pack product of the Cool Blasts to persuade customers to try the new product at a discounted price when bought in bulk. The packaging also lacks in clarity as “Peppermint/Spearmint Chews” has a very vague connotation. As a consumer, it is hard to determine what exactly are “Chews” because of the multiple meanings behind the word. In other words, the consumer is given no clear distinction of if the product is candy, gum, mint, or all three. Unless you have read or heard about his product before, the consumer cannot clearly understand what the product is with a quick glance at the store. As such, there has to be better terminology on the packaging to describe these Cool Blasts as a gum/mint combo.

Altogether, there has to be a re-branding of the Cool Blasts product to ensure that customers are actually attracted to buying the product. With a new re-branding, the product will have a new image that grabs the attention of more customers to increase more awareness, interest, and sales. As a result, the product will take its right place on the store self to attract more customers to try the newest creation from Ice Breakers.

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Promotion: To promote the Ice Breakers Cool Blasts in a fresh, exciting, and differentiating manner, we recommend a strategy that includes 5 different marketing and advertising tactics including the following: · 2 Social Media Campaigns · Primetime Television 30-second Spot · Wallscape Advertisements · 2 Print Magazine Advertisements · Mini YouTube Series Social Media Campaigns In recent years, digital advertising and social media tactics has seen significant growth among large brands and has proven to be an effective medium for reaching large audiences. With the 18-34 age range that Ice Breakers works to target, we propose 2 campaigns based on seasonal activities and interests. Campaign 1 Details: · Launch in the beginning of the summer season (May 2016) · Will run for 60 days · Incorporate platforms including Instagram and Facebook · Use portion of social media budget for content creation, analytics, and boosted/sponsored posts The first proposed campaign will be titled “Ice Breakers: Keep Your Cool”. The main purpose of the campaign is to engage audiences with the brand and playing off of the idea of “cool” in terms of the summer season and as a descriptive adjective. Consumers will be encouraged to participate in the campaign by sharing with the brand via Instagram and Facebook how they “keep it cool” in the summer months both physically and socially. The terms and conditions will include rules that the submission must include the Cool Blast product and the hashtag: #keepinitcool. The winner of the contest will be chosen at the end of the 60 day period and the prize will include an all-expense paid trip to a vacation destination. The vacation prize is extra incentive to participate. Campaign 2 Details: · Launch in the beginning of the winter season (November 2016) · Will run for 30 days and conclude before the holiday season · Incorporate platforms including Instagram and Facebook · Use portion of social media budget for content creation, analytics, and boosted/sponsored posts The second proposed campaign will be titled “Chill Zone“ and will coincide with the winter season taking into account winter sports, holidays, and cold weather activities. The theme will match well with the characteristics of Cool Blasts themselves and the brand image. The

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campaign will ask consumers to submit photos of their winter adventures and their kind of winter “cool”. The logistics of the campaign will mimic the previous summer campaign with the use of the hashtag: #chillzone and the grand prize will be a free stay at a top ski resort in Aspen, Colorado. Mini YouTube Series Video series have continued to gain popularity among consumers on YouTube and various other social media platforms. To communicate the social factor involved with Ice Breakers Cool Blasts, we propose a mini video series that will consist of street interviews in which an Ice Breaker’s representative will ask individuals to share a pack of Cool Blasts. The task will promote a sense of community and the value of sharing and giving as the “new cool”. The series should combine comedy, emotion, and information in short video clips. The clips can also be re-used as content on various other social media platforms. In addition to the video task mentioned above, sampling and taste testing can also be included in video footage to introduce Cool Blasts as a truly new category. See appendix 3g for a basic visual of the YouTube layout and concept. Other considerations regarding digital tactics are continued analytics, consistent content management (in addition to specific campaigns), and budgeting for sponsored/boosted posts to increase visibility and audience. We propose 2 individual campaigns as supplemental support to the social media presence that Ice Breakers currently has or will continue to build throughout the extent of the 12-month period. There should be increased budgeting and content management put in place for Instagram. Instagram is currently one of the number one places for brand investment with an active 300 million user-base that matches the demographics and interests of the Ice Breakers Cool Blasts target market. Television 30-second Spot To continue to promote the Ice Breakers brand and product line extension, we recommend broadcast television as another mass medium. The overall theme of the spot will be “For you most important days, you deserve fresh breath on demand.” The commercial will contain production clips of a wedding day, a graduation day, and the day of the big interview to communicate that Cool Blasts have the ability to provide fresh breath at a level different from just a regular mint, but without the duration of chewing gum. After production of the spot, we recommend media placement on Fox with a primetime daypart to ensure a significant audience. See appendix 4 for data regarding this specific primetime audience. See appendix 3d for a basic visual proof the concepts for the commercial spot. Wallscape Advertisement A wallscape advertisement is most frequently a large banner or painting that scales the side of large buildings in large urban areas. We suggest using this tactic as a form of guerilla advertising in major cities across the U.S. Please refer to appendix 3c for an example of the proposed Ice Breakers wallscapes. The frost displayed in the visual is meant to cover the surrounding walls and sidewalks to create intrigue and curiosity.

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Magazine Advertisements After some basic research regarding the circulation and readership of top U.S. magazines, Cosmopolitan Magazine and Sports Illustrated Magazine were the most effective means of communication for targeting the ideal audience for the Ice Breakers brand. The proposed concepts for each ad target men and women individually with respect to the audience of the publication. For Cosmopolitan, the main target is women. For Sports Illustrated, the ad will be created to appeal to the male demographic 18-34. Each piece will be a full-page ad. It is recommended the Cosmopolitan Ad be placed in June 2016 and Sports Illustrated ad planned for September 2016 based on the nature of the messaging. See appendix 4 for data regarding each magazine and example ads for each specific publication.

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Sampling: In order to capture the attention of targeted consumers, sampling plays an important role in any marketing plan. Our survey results showed that out of the people who have tried Cool Blasts, most of them enjoyed chewing these mints. Respondents who have yet to try the product agreed to try them if they had the chance to sample Cool Blasts at no cost. Not only will free samples gain consumer attention, consumers may feel special when receiving a sample of Cool Blasts at no cost. With that being said, giving consumers the opportunity to sample Ice Breakers’ Cool Blasts will greatly benefit the brand as well as the business. Choosing the right locations and events for sampling these mints must be done carefully so as to target consumers between the ages of 18 and 34. In today’s society, many young adults focus on the social aspect of products. A group of friends does not simply decide to buy coffee for the sake of drinking the coffee. This group of friends plan on meeting at a coffee shop to “catch up” on their lives. Also, breath fresheners are always needed after finishing a meal or a cup of coffee, especially if one does not have access to a toothbrush and toothpaste. Offering samples of Cool Blasts at restaurants and coffee shops would be ideal. Consumers would enjoy having fresh breath after having dinner or coffee, especially if these consumers are at a social gathering. Additionally, samples of these Ice Breakers’ Cool Blasts would be beneficial to have at hotels. In most—if not all—hotels, a mint or a small chocolate can be found on the pillow of the bed. Guests feel like they are being cared for when they find this treat on their pillows. By placing Cool Blasts mints on guests’ pillows, consumers may feel a sense of comforting care, and may attribute this sensation to these mints. As in most grocery stores, samples can be found at the end of nearly every aisle. It would be beneficial to offer samples of the mints to consumers as they shop for their groceries. In doing so, the consumer may be motivated to purchase a package of Cool Blasts if they enjoyed the sample. Sponsorships: At nearly every event—and the end of most television shows—a list of sponsors can be found. For example, Giant Eagle sponsors the Pittsburgh Steelers. If Ice Breakers’ Cool Blasts sponsors an event or service, consumers will learn of the product. Since these consumers are attending—and thus supporting—the event, they will positively associate Cool Blasts with the event. This positive association may lead consumers to take interest in Cool Blasts. With that being said, sponsoring social events—for example, music festivals, concerts, and races (i.e. Tough Mudders, the Color Run, etc.), will increase consumer awareness of the product. Music festivals, such as Coachella, typically target the younger adults. By sponsoring music festivals and other social events, it is possible to interest consumers—between the ages of 18 and 24—Ice Breakers’ Cool Blasts may also benefit from sponsoring dating services, such as Coffee

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Meets Bagel, eHarmony, Match.com, and so on and so forth. Sponsoring dating services will reach our older target audience, which is consumers aged 25 to 34. In addition to sponsoring the aforementioned social events and services, using internet celebrities to advertise your product can reach a plethora of consumers. These internet celebrities, like Brittany Furlan and Brandon Calvillo, have a large following on social media platforms (i.e. Instagram, Facebook, Twitter, Vine, etc.). Sponsoring these stars to advertise Ice Breakers’ Cool Blasts will greatly benefit the brand and the company. Also, posting pictures of these Cool Blasts mints—or even of random, relatable pictures with creative taglines—will appear in people’s newsfeed, thus gaining their attention.

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Distribution: While it is clear that distribution will increase incrementally throughout stores and check out lanes when product cycles and store inventory permit, there is much to be said regarding how the product is placed on the shelves. One of the biggest problems encountered when researching and brainstorming the product, is the lack of clear visibility for the shopper. Therefore, the Cool Blast packs must be clearly marked in shelving displays that not only signal the newness of the product, but the unique categorization it encompasses of being neither a gum nor a mint. Therefore there are a series of recommendations regarding placement that would increase consumer notice and intrigue. Although the product is neither a gum or a mint, we recommend placing it within the candy aisle, near the gum and mints to help the consumer understand it as a breath freshening confectionary item. While it may be advantageous to place Cool Blast Chews among the other Ice Breakers products as to leverage the brand, it must stand out among the other products for it to be noticeable and induce trial. To do so, we recommend using a peg for larger multi packs with clear shelf talkers and brightly colored labeling or danglers to catch the consumer’s eye. It can hang among the gum packs as well as be placed among mints due to its unique product texture and consistency.

End caps will serve as an important way to showcase the product, as well as allow for a creative outlet for branding. This being said, we recommend power wings with a gravity feed, in essence, a large wire or cardboard sleeve where shoppers can pull packs of Cool Blasts out of the bottom. This display must be covered with the colors of the brand as well as the tag line, however the design of the labeling must not be too overwhelming or busy. The power wing can be used in all classes of trade as well as the pegs with danglers or shelf talkers. When the product hits the checkout lanes for last minute purchases, it important to include clips on the check lane wings, as well as placing it among the smaller shelves for clear visibility. We especially encourage the clips to differentiate Cool Blasts from Ice Breakers’ other products, as well as to include clear shelf talkers to point out the attributes and branding. All of these recommendations can be used across all classes of trade such as your convenience stores as well as your grocery and larger retailer accounts. The wing clips and power wings should be especially prevalent in convenience stores, and the pegs and shelf talkers will be most visible in larger chains such as Walmart.

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Sales Forecast: Taking the three years of given sales information, we extrapolated the dollar amounts to find per month totals. By doing this we assumed that the rate of the current sales were uniform, largely because the limited amount of time Cool Blasts Chews have been released and the lack of detailed information on specific buy deals. This process can be shown in Appendix 2b. We then used those per month amounts and used them to forecast the sales during our year long campaign. Because of the planned increase of distribution as well as the promotional and sampling aspects of the marketing plan, we assumed that forecasted sales would increase by 20% overall. Walmart, because it is the largest aspect of Ice Breaker’s sales, is projected to increase by 25% as Cool Blasts appears in checkout lines and other areas. As for the following years, we predict that sales will continue to increase due to heightened product awareness and constant company backing and support. Because the first year’s sales are forecasted to have a large growth spurt due to the newness of the confectionary product, the proceeding years will decrease in percentage increases. We forecast that the sales will decrease to a 15% leap in sales, and then to 10% in the third year and plateau at 7% for the fourth and fifth. The breakdown of sales can be seen in Appendix 2a.

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Conclusion: After the extensive research we conducted with focus groups, surveys, and analysis, we have found that the further success of Ice Breakers Cool Blasts depends on a newer product design, a mixture of social media, advertising, and promotional sampling, and a series of distribution means will increase the overall visibility and trial of the product.

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Appendix 1) Budget: a. Promotions Budget: Full-page Print Ad in Cosmopolitan: 268,515.00 Full-page Print Ad in Sports Illustrated: 429,000.00 Primetime TV Spot- Fox: 188,974.00 TV Commercial Production: 342,000.00 Wallscape Advertisement: 40,000.00 Social Media: 1,231,511.00 Sunday Newspaper Coupons: 500,000.00

Total: 3,000,000.00 b. Distribution Budget: Power Wings: 1,000,000.00 Lane Clips: 250,000,000.00 Shelf Talkers and Danglers: 750,000,000.00 Total: 2,000,000.00 c. Sampling: Coffee Shops and Restaurants: 500,000.00 Hotels: 250,000.00 Grocery Stores: 250,000.00 Total: 1,000,000.00 d. Sponsorships: Music Festivals and Concerts: 1,000,000.00 Dating Sites/Services: 250,000.00 Total: 1,250,000.00 e. Product Design: Package Coloring and Labeling: $500,000.00

2) Sales Forecast a.

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b.

3) Promotional Ads

a.

19

b.

c.

20

d.

e.

21

f.

g.

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4)Magazine Audience Data:

Cosmopolitan: Readers: 7,414,000

Readers per copy: 6.06

Demographic: Women 18-34 years of age

Sports Illustrated: Total Readers: 19,900,000

Readers 18-34: 7,800,000 (comparable to Cosmopolitan) #1 among all measured magazines in reaching educated men 18-34 years of age

Television Audience Data:

Fox Broadcast Network: Audience: 18-49 years of age

5) Survey Questions

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6). Focus Group Questions

● When do you chew gum?

○ After eating

○ After drinking

● Where do you get your gum?

○ Grocery store

○ Convenient store

● Why do you chew gum?

○ Dry Mouth

○ Breathe

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○ When you’re hungry

● Any places you like to get gum where it’s not sold?

○ Coffee shop

○ Restaurants

○ Library

● When do you eat mints?

○ When you want candy

○ During work shifts

○ Never

● Where do you buy mints?

○ Grocery stores

● Have you ever tried Cool Blasts chews?

● What would encourage you to try them?

○ A promotion?

○ Lower priced than other products

● Where would you like to receive a sample of this product?

○ College campuses

○ Restaurant cash register

● What do you think about the 3 flavors?

● What are your thoughts after trying the Cool Blasts?

○ Weird texture

○ Confused

○ After taste

● When would you use these?

○ Time constraint

○ Professional meeting

○ Food/drink related

○ Romantic situation

● What do you think about the current commercials?

● Would you recommend this?