Hill's Science Diet Media Plan Briefing

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April 22, 2014

HILL’S SCIENCE DIET DOG FOOD2014 MEDIA PLAN BRIEFING

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PLAN OVERVIEW

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PLAN OVERVIEW

For the June 2014 through May 2015 fiscal year our marketing objective is tor increase sales by 10 percent. To get this accomplished we have scheduled advertising over three different mediums; cable television, magazine and radio, spread evenly throughout each month. Special promotions are planned for August 2014, December 2014 and April 2015 to aid in the increase of sales over the fiscal year.

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TABLE OF CONTENTS

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TABLE OF CONTENTS• Plan Overview 2

• Table of Contents 5

• Situation Analysis 6

• SWOT Analysis 11

• Marketing Objectives 13

• Communications Objectives 15

• Media Strategy 17

• Media Parameters 19• Media Tactic 24

• Media Mix 40

• Scheduling 43

• Budgeting 44• Flowchart 46

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SITUATION ANALYSIS

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SITUATION ANALYSIS – COMPANY• Created in 1939

• Dr. Mark L. Morris Sr.

• Buddy – guide dog

• Burton Hill of Hill Packing Company

• 1976 bought by Colgate-Palmolive

• Grown at average annual rate of 1.9% to $1.2 billion

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SITUATION ANALYSIS – COMPETITION

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Hill's S

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$20,000,000.00

$40,000,000.00

$60,000,000.00

Competitive Spending Analysis

Source: 2012 CMR Data

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SITUATION ANALYSIS - COMPETITION

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SITUATION ANALYSIS – CUSTOMER • “Pet Parents”

• Women are normally pet parents

• Buy premium dog food

• 76% buy food formulated to dog’s lifestyle

• 69% buy food with added health benefits

• 51% buy food that addresses weight loss or maintenance

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SWOT

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SWOT

• More than 50 different Science Diet brand pet foods

• Global brand, sold in 80 different countries

• Bad reputation

• Dog food sales strong• Pets are considered family

members

• Pet food prices outpace human food prices

Helpful Harmful

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MARKETING OBJECTIVES

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MARKETING OBJECTIVE

For the June 2014 through May 2015 fiscal year the objective is to increase sales of Hill’s Science Diet dog food by 10% with a $30 million budget.

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COMMUNICATIONS OBJECTIVES

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COMMUNICATIONS OBJECTIVES

Reach: 75.8

Frequency: 3.0

Continuity: Active in markets throughout the entire fiscal year

Impact: Generate awareness of the product through the help of three promotions

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MEDIA STRATEGY

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MEDIA STRATEGY

Our overall media strategy is to build awareness of Hill’s Science Diet using national cable television, supported with radio, general interest magazines and promotions

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Target Audience, Timing, Budget, Geography

MEDIA PARAMETERS

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TARGET AUDIENCE

• Adults age 18-49

• Associates degree or higher

• Household Income $60k+

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TIMING• Even distribution of ads throughout June 2014-

May 2015 fiscal year

• Three promotional periods

• No seasonality involved

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BUDGET• $30 million

• Funds for consumer advertising media expenditures and promotions

• Production and talent expenses not included

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GEOGRAPHY• National campaign only

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MEDIA TACTICS

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MEDIA TACTICS – DOGGY BREAKFAST• Free meal for dog owners and

dogs

• Placard in front of Petco and advertising on web page

• Serve dogs samples of product

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MEDIA TACTICS – DOGGY BREAKFAST

• Budget - $250,000

• Begins August 2014

• CPM - $42.50

• Total Impressions – 5,882,352

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MEDIA TACTICS – QR CODEQR Codes will be placed near Hill’s Science Diet displays in Petsmart and Walmart. Upon scanning codes customers will be given a survey about their dog and a 20% off coupon to show cashier at checkout on day of purchase.

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MEDIA TACTICS – QR CODE• Budget - $250,000

• Begins December 2014

• CPM - $42.50

• Total Impressions – 5,882,352

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MEDIA TACTICS – SELFIE CONTEST• Pet parents will

post a selfie of their dog on Facebook

• “Likes” decide the winner

• Year supply of Hill’s Science Diet dog food

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MEDIA TACTICS – SELFIE CONTEST• Budget - $250,000

• Begins April 2015

• CPM - $42.50

• Total Impressions – 5,882,352

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MEDIA TACTICS – NET CABLE

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MEDIA TACTIC – NET CABLE

• National Geographic and ESPN on Primetime and Early Fringe

• Total Cost - $7,755,909

• 30 second spots

• 533,232,000 total impressions

• CPM - $14.55

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MEDIA TACTICS – MAGAZINES

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MEDIA TACTICS – PEOPLE MAGAZINE

• Adults 18-49: 61% comp.

• Attended/graduated college: 61% comp.

• $60,000+ HHI: 55% comp.

• Total Adults: 42,707,000

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MEDIA TACTICS- TIME MAGAZINE

• Median Age: 48

• Male/Female%: 55/45

• Att/Grad College: 12,357,000,000

• Median Income: $72,131

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MEDIA TACTICS – NATIONAL GEOGRAPHIC MAGAZINE

• Median age: 46.9 years

• Graduated college: index of 132

• Post graduate degree: index of 143

• Median HHI: $66,446

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MEDIA TACTIC – MAGAZINES• Total Cost - $15,648,768

• Full page, four color

• 1,096,934,400 total impressions

• CPM - $1.43

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MEDIA TACTICS – RADIO

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MEDIA TACTICS – RADIO • Total Cost - $5,839,368

• 60 second spots

• 1,797,753,600 total impressions

• CPM - $3.25

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MEDIA MIX

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MEDIA MIX – BUDGET

Cable-Primetime

Cable-Early Fringe

Radio-AM Drive

Radio-PM Drive

Magazines-General In-terest

Promotions

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MEDIA MIX – IMPRESSIONS

Magazines - General InterestCable - PrimetimeCable - Early FringeRadio - AM DriveRadio - PM DrivePromotions

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SCHEDULING

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BUDGET SUMMARY

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BUDGET SUMMARY CHARTMedia Budget Impressio

nsCPM Total %

Cable Early Fringe

$1,801,260 228,528,000 $7.88 6.01%

Cable Prime

$5,954,649 304,704,000 $19.54 19.85%

Radio-AM Drive

$3,468,168 1,005,523,200

$3.45 11.56%

Radio-PM Drive

$2,371,200 792,230,400 $2.99 7.91%

Magazines-General Interest

$15,648,768 1,096,934,400

$1.43 52.17%

Promotions $750,000 17,647,058 $42.50 2.5%

Totals 29,994,045 3,445,567,058

$8.71 100%

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FLOWCHART

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FLOWCHART