Cheeze its

• Cheez-It’s were first sold by the Green & Green

Company in Ohio, 1921.

• After the Wall Street Crash of 1929, The Green & Green Company was acquired by The Sunshine Biscuit Company, founded in 1902 as the Loose-Wiles Biscuit Company.

• The Keebler Company acquired Sunshine in 1996, and Keebler was in turn acquired by Kellogg in 2001. Cheez-It squares are still sold under the Sunshine label.

Brief History

Parents looking for a tasty snack for their children. Cheese lovers looking for a flavorful snack School kids looking for a

tasty snack during lunchtime.

College students Sporting event fans

Target Group Definition Demographics: --Women and men ages 21-45

--Children ages 7-12 --Teens ages 13-19

Psychographics: --Middle Class families with children

--Likely to try new products -- Quick and easy

Consumer Analysis

Expanding the Brand

Cheez-It offers one specific snack with dozens of variations.

Offers a snack that doesn’t need dip, or sauce to enhance the taste

Sold in most grocery stores

Offers smaller ―snack‖ sized boxes/bags for a snack on the go

Competitive Points of Differentiation

Different flavor to satisfy a variety of preferences.

A snack after a long day of work/school

A ―game day‖ snack

―Real cheese matters‖

Cheese Nips

Goldfish

Direct Competitors

Created in 1961 originally owned by Nabisco in 2001

Nabisco merged with Kraft and Cheese Nips were produced with Kraft cheese.

Now Cheese Nips is owned by MondelezInternational the umbrella company of Kraft.

Mind Of Consumer: Cheese Nips are coated in something similar to Cheetos dust, where it leaves orange droppings all over your fingers.

Figures cannot be released #CompanyPolicy

Cheese Nips

Created in 1962 when Margaret Rudkin discovers the

snack cracker on a trip to Switzerland and returns with the recipe.

Goldfish is owned by Pepperidge Farms and Cheddar is the is the highest selling flavor of goldfish in the US.

Mind of Consumers: Goldfish creates a orange clingy paste in your mouth.

From 2009 to 2010 sales have increased 9.5%

Goldfish

Wheat Thins

Triscuits

Saltine

Ritz

Indirect Competitors

Made in 1903 in Niagara Falls New York originally

owned by Nabisco. Now owned by MondelezInternational the umbrella company of Kraft.

Mind Of Consumer: Healthier Option made out of whole wheat wafers

From 2009 to 2010 sales have increased 1.4%

Triscuits

Introduced in 1934 by Nabisco. It conjured up

images of wealth by alluding to the posh Ritz-Carlton Hotel in New York, which elicited the promise of better times to come. This had great appeal to Americans during the Great Depression years.

Mind of Consumer: Everyone’s favorite cracker lightly salted and has great taste.

From 2009 to 2010 sales have decreased 12.8%

Ritz Crackers

Main Competitor

Kellogg Company was formed in 1906 as a company focused on ready-to-eat breakfast cereals.

Despite the death of W.K. Kellogg’ in 1951, Kellogg continued to expand, building plants in England, Australia, Latin America, and Asia.

Brand Analysis: Kellogg

Now, Kellogg is a leading producer of ―food innovations‖

World’s leading producer of cereals and one of the leading producers of snacks and frozen foods.

Company Statement: ―Our well-loved brands produced in 18 countries and

marketed in more than 180 countries include Cheez-It®, Coco Pops®, Corn Flakes®, Eggo®, Frosted Flakes®, Kashi®, Keebler®, Kellogg's®, Mini-Wheats®, Pop-Tarts®, Rice Krispies®, Special K®, and many more‖

(Kellogg Investor Relations)

Kellogg Continued

The Cracker category of Kellogg’s is currently a 122 million dollar category.

Yearly growth rate of almost 10%

According to Kellogg’s, a category trend is that the single serve cracker packs are driving their sales growth.

(Kellogg Convenience)

Brand Analysis Cheez-It

Currently, the three ounce single serve

packaging of Cheez-its is the most popular and is experiencing sales growth among all of the different flavors.

Additionally, Cheez-it has the highest distribution in the cracker category( 88.7 AVC).

According to Kellogg, this variety in serving sizes allows sellers to meet varying needs of customers.

(Kellogg Convenience)

Current Brand Position

―Choose the Cheese‖ interactive

publicity campaign

Asked user to choose between Asiago, Colby, or Romano for the next flavor of Cheez-Its.

According to Kellogg, ―A sample-pack giveaway and in-store sample-pack sales let consumers shape the future of the brand, and after38 million votes, the winning flavor—Cheez-It Colby— reached supermarket shelves nationwide‖

(Kellogg Investor Relations)

Recent Advertising Expenditures

Other advertising expenditures include campaigns such as the ―Real Cheese Matters‖ commercial campaign in which the company stressed one of the main competitive points of differentiation for Cheez – Its, which is that they allow their cheese to mature to provide the best taste offerings to consumers.

The campaign was able to increase ad support by 22 % to $33 million over the year of the campaign, according to Neilson findings.

―Real Cheese Matters‖

According to Kellogg’s Quarter4 2012 Earnings

Release, the US Snack category increased sales by 1.9%, reaching a quarter sales high of $865 (internal net sales MM) in quarter 3.

International growth (2012 full year)

Europe : -3.8%

Asia Pacific: 2.7%

Latin America : 6.7%

Recent Earnings

Among Kellogg products, at this point, Cheez-It is taking a back

seat to some of the other products which are being featured at the forefront.

Instead of focusing on diet and health, Cheez-Its takes the approach that it is made with real cheese. While as a company, Kellogg does offer diet food products, the specific Cheez-Its brand does not, which may be a drawback.

SWOT Analysis

While the weakness illustrated may impede on

Cheez-Its ability to garner new customers, a strength of the brand is that because it has been available for so long, it has very loyal consumers. Families who have been buying and consuming Cheez-Its for a longer period of time are more likely to continue to support the brand. A snack for any time of the year

Few competitors offer the same type of cheese snack.

Over the years the original recipe has stayed the same, tweaks have been made to create new tastes.

Brand Loyalty

Point-of-Sale Promotion and End-Cap Marketing

Social Media

Contests

Product Giveaways

Promotional Strategy

Sponsoring Up til’ Dawn

Promote at Food Markets and Student Union

Television Advertisements

Sponsor A College Bowl Game

Print/ Online Media

Social Media

Advertising Plan

Cheez-It is joining the Colleges and Universities

across the United States. According to several Universities in the northeast area:

Parking Fee: Complimentary

Cost for small Cheez-It bags: on average 400 students; $1.00 per bag= $400 per college

Producing t-shirts with Cheez-It logo: $5,000 per college

Up til’ Dawn

Promotion at food markets and student unions on

University campuses. There will also be a $1.00 off coupon. Prices based per University.

-Cost for $1.00 off coupons: $400

Cost to hand out snack bags at student unions= $250

Cost for sampling at food market= $50 (tray with Cheez-It)

Food Markets & Student Unions

Sponsoring a college bowl game will get our name

out there

People in attendance will get Cheese heads and instead of pop corn the audience will get Cheese Its.

The game will be televised and reaching the target audience and the audience will see Cheez-It commercials. This would also be a good time to have viewers Tweet or Instagram their ―I Snack Moments‖. - Sponsoring a bowl game will cost $1.4 billion.

Sponsor A College Bowl Game

Online media ads will be shown on Facebook, Hulu

and Pandora. Print advertisements will be People Magazine.

-Full Page in People- $324,400

-Facebook -Choose to pay only when people click (CPC) or see your ad (CPM)

-Hulu- Advertising on Hulu is currently sold on a CPM basis between $25-$30

-Pandora – $10,000

-YouTube – $375,000

Print/ Online Media

Start a Twitter with the handle @RealCheez-Its, to

build customer relationship and open the lines of communication with customers and allow them to give feedback on our products.

As part of our campaign we will have followers Tweet or Instagram pictures of them eating Cheez-Its as part of the ―I Snack Campaign‖.

Mobile Site http://clqs.us/p/PeLlHniS

Social Media & Mobile Site

Magazine Advertisements

Name Audience Reader Age

People Magazine 97% Females 31% under the age of 25

ESPN Magazine 80% Males 88% between 18 and 54

Name Audience Age

Pandora 1,371,488 Between the age of 18 and 65

YouTube 128.2 Million 67% between 18 and 34

Facebook 158,848,960 98% between 18 and 24

Internet Advertisements

Network Name Of Show Cost

NBC Sunday Night Football $545,000

FOX X-Factor $201,875

CBS How I Met Your Mother $187,653

ABC Dancing With The Stars $160,466

FOX Family Guy $239,866

NBC The Voice $239,866

MTV MTV $190,000

TV Advertising

Advertising Plan

People Magazine has an audience of 97% Females, the median age is 29.8 and 31% of its readers are under the age of 25.

ESPN Magazine has an audience of 80% males, the median age is 34 and 88% of readers are between the age of 18 and 54.

YouTube reaches 128.2 million people, 58% are male and 58% are female, and 67% are between the ages of 18 and 34.

Pandora Internet Radio reaches an audience between the age of 18 and 65.

MTV reaches 500,000 television viewers a day 64% of the viewers are between 18 and 34 years old, 56% are females and 44% are males.

Pandora Internet Radio

$10,000 YouTube

$375,000 Facebook

$1,000 Sunday Night Football

$545,000 MTV

$19,000 How I Met Your Mother

$187,653 The Voice

$239,866 Family Guy

$276,690 X-Factor

$201,875 Dancing With The Stars

$160,466

Contingency Fund $500,000

Advertising Plan

Hulu Ad

Pandora Ad

Hulu Ad

Pandora Ad

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