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Justin Ryan Thomas; Repositioning Skippy Peanut Butter: Ad Campaign Book

Sep 13, 2014

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This ad-campaign book describes a complete Repositioning process for the Skippy Peanut Butter Brand.

"Skippy: Life's Best Complement in a Jar"

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Page 1: Justin Ryan Thomas; Repositioning Skippy Peanut Butter: Ad Campaign Book

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Page 2: Justin Ryan Thomas; Repositioning Skippy Peanut Butter: Ad Campaign Book

We at Ignite know that in each individual lies a desire to connect. We connect to others, we connect to objects, and we connect to experiences. It is in this desire to connect that great relationships are sparked between brand and user. Through innovate solutions, we work to ignite the desire in consumers to connect to your brand.

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Page 3: Justin Ryan Thomas; Repositioning Skippy Peanut Butter: Ad Campaign Book

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Page 4: Justin Ryan Thomas; Repositioning Skippy Peanut Butter: Ad Campaign Book

IGNITE has devised

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Page 5: Justin Ryan Thomas; Repositioning Skippy Peanut Butter: Ad Campaign Book

1933 – Skippy brand is first produced by Rosefield Packing Co.

1960 – Skippy television sponsorship. “Dennis the Menace”

1963 – Norman Rockwell illustrations created for Skippy

1977 – Production begins in the Little Rock, AR plant

1994 – Olympian Bonnie Blair becomes spokesperson

1996 – New formula announced

1998 – Yankees’ Derek Jeter introduced as spokesperson

2000 – Unilever acquires Bestfoods for $20.3B

2004 – Production begins on Skippy Snack Bars

2010 – The new Skippy is introduced

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Page 6: Justin Ryan Thomas; Repositioning Skippy Peanut Butter: Ad Campaign Book

IGNITE has devised an innovative and integrated campaign that will re-introduce Skippy as a pioneer

in the peanut butter market. By understanding our target market and the way they use peanut

butter, we will take Skippy from a commodity to product, to a highly

customized and highly differentiated staple of our consumer’s everyday

routine. Through a complete repositioning of the product, we are confident

that this integrated communications plan will make Skippy the first choice

of peanut butter for 18-34 year olds.

Objectives:•Increase awareness of Peanut Butter as a customized product•Increase preference for Skippy Peanut Butter over other non-customized brands•Develop an innovate, flexible, and sustainable creative strategy that can be used for future marketing communications

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Page 7: Justin Ryan Thomas; Repositioning Skippy Peanut Butter: Ad Campaign Book

Over the past several years many trends can be seen in the food and beverage industry as well as

in the marketplace as a whole. Three key insights include:

Customization: consumers no longer desire products developed for the mass market,

“me-tailing” is the new retailing. In every consumer category from electronics to

cosmetics to food and beverages, there is evidence of an increase in individualized products.

Price-Sensitivity: Current economic climate has decreased the amount of brand loyal

consumers in the marketplace. Consumers now base many purchase decisions,

especially on products with low perceived differences between brands, solely on price.

Nutraceuticals: As the lifestyles of consumers change, the vitamins, minerals and

supplements industry is increasing rapidly. Because of increasing demand for products

with specific health benefits sales in the nutraceuticals industry are expected to reach

$3.6 billion by 2013.

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Page 8: Justin Ryan Thomas; Repositioning Skippy Peanut Butter: Ad Campaign Book

Peanut Butter Market DemographicsDemographic analysis of peanut butter users in terms of age, income, and education demonstrates specific patterns that will prove useful in profiling our product’s target market. Analysis of the peanut butter market reveals that peanut butter users tend to be well educated and affluent. We have also identified a connection between the 18 to 34 year old segment and preference for all-natural peanut butter. We believe these insights could have a strong impact on future strategic decisions, and may present an opportunity to build competitive advantage in the market.

Demographic trends show a direct and measurable positive relationship between peanut butter consumption and income. On average, the higher a consumer’s annual household income the more likely they are to have consumed peanut butter in the past 6 months. 71% of consumers with an average income of less than $20,000 consumed peanut butter in the past 6 months while consumers with an income of $75,000 to $149,000 were the most likely to have consumed peanut butter, with an 80% likelihood. The same pattern is present in crunchy, creamy and all-natural peanut butter varieties.

The market also showed a direct positive relationship between education and peanut butter consumption. Consumers with less than a high school education were the least likely market segment to have consumed peanut butter in the past 6 months, with a likelihood of 68.8%. This percentage increased directly with each level of education. 77.3% of consumers who completed college had

consumed peanut butter in the past 6 months, a greater percentage than any other segment. This pattern was congruent in all varieties of peanut butter.

Vitamin and Supplement Market DemographicsWe have identified similar usage patterns in the vitamin and supplement industry through demographic trend analysis. The vitamin and supplement market exhibits a direct and positive relationship between vitamin and supplement usage, income and education. Vitamins and supplements share the very same correlation that peanut butter does with each level of education and income.

Trends show a direct and measurable positive relationship between vitamins and supplement usage and income level. The least likely segment to use vitamins and supplements were those with an annual income of less than $20,000. The most likely users have annual household income of greater than $150,000.

There is a similar measurable relationship between usage and education level. The least likely segment to have used vitamins or supplements in the past 6 months was those with less than a high school education, who exhibited a 39.7% likelihood. The most likely segment to have used vitamins or supplements was those with a graduate college plus education, who exhibited a 57.9% likelihood.

There is a clear relationship between the peanut butter and the vitamin and supplement markets. In both markets, usage

increases as the segment becomes more educated and earns a higher income. Highly educated individuals are 18% more likely to use vitamins and supplements , and 8.5% more likely to consume peanut butter. Affluent consumers are 12.1% more likely to use vitamins and supplements, and 9% more likely to consume peanut butter. These figures have prompted us to conduct further inquiry into specific vitamin and supplement product usage.

Performance, Health and Weight related Supplement DemographicsTo equate with performance related vitamins, we analyzed demographic trends related to Centrum Performance vitamins.

We analyzed demographic trends related to Centrum Weight Smart vitamin supplements in order to help illustrate the weight control supplement market. This market was more than twice as likely to be female. They were interested in TV networks such as the Food Network, Lifetime, ABC family and QVC. They had a high magazine readership in publications such as Reader’s Digest, Allure, In Style and Women’s World.

In order to get a picture of the market for overall health supplements, we analyzed the original Centrum product. The amount of male and female consumers was nearly equal for this product. TV interests for this market include ESPN, G4 network, CBS News. They were highly interested in Elle and reader’s Digest, and enjoyed traveling.

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Page 9: Justin Ryan Thomas; Repositioning Skippy Peanut Butter: Ad Campaign Book

Skippy is one of the most recognizable brands in the United States. Due to the intense competition that Skippy Peanut Butter

has had to face from both direct and indirect competition, this well-established company has been unable to obtain the product’s

true market potential. Since the Peanut Butter industry has not seen a major change in recent years, sales have been stagnant.

Direct Competition

Other major peanut butter brands: Jif, Peter Pan, Goober, Squirrel, generic

store brands.Other major peanut butter brands can often give the same satisfaction and benefits to consumers as Skippy. This is especially the case when consumers are not brand loyal. If all products are viewed as similar, there is no reason to choose a product except by price.

Indirect Competition

Similar in taste and consistency to peanut butter:

Cashew ButterAlthough it has different nutritional aspects than peanut butter, cashew butter is the closest tasting substitute that offers the most benefits to the consumer. This substitute provides mostly the same benefit to peanut butter, while also being acceptable to those that are allergic to peanuts.

Similar in function: Sunflower Butter, Almond Butter, Soy Nut

ButterProducts that are similar in function, but different in taste, to peanut butter have a small but dedicated following. Currently, most of the market that uses these goods are those consumers who are unable to consume peanut butter because of health reasons, or a distinct personal preference. Because of their unique nutritional offerings, products that are similar in function to peanut butter may soon be taking some of Skippy’s market share.

Non-traditional Competition

Other spreads:Humus, Guacamole, and Cream Cheese

There are a large amount of products that fit in this category. In this area of substitutes to peanut butter, most of these products cannot serve the direct same use, but very similar purposes. All of these products are mostly niche oriented and do not pose an immediate threat to the Skippy market share, as their main purpose is different.

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Page 10: Justin Ryan Thomas; Repositioning Skippy Peanut Butter: Ad Campaign Book

To better understand where Skippy is as a brand and where it can go, we examined the Strengths, Weaknesses, Opportunities and

Threats. Our findings will better help us establish a new positioning for Skippy in what is clearly a stagnant advertising market. It will

also define all necessary knowledge about the market to stay ahead of what the current direct competition is doing.

• Well known brand

• Top of the mind awareness in consumers

• Reputation for high quality products

• Easily accessible to consumers

o p p o r t u n i t i e s

•Many population segments go un-served by

current peanut butter brands

•Industry trends towards customization have not

yet been realized by this segment

• Homogenous industry allows for potential

differentiation

w e a k n e s s e s

• Lacks strong brand identity

• Doesn’t occupy unique position in the

marketplace

• Product has gone relatively unchanged since

its introduction in 1933

• Price-sensitive consumers

•Low barriers to imitation

•Consumers may reject changes in products

they are familiar with

•Government regulations

stre

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ths

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at

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Page 11: Justin Ryan Thomas; Repositioning Skippy Peanut Butter: Ad Campaign Book

Our target audience is consumers ages 18 - 34 year olds who value customized products tailored to complement

their lifestyle needs.

Consumers in this demographic have be a part of the “meconomy” their entire life and have come to rely upon individualized products.

HEALTHTargeted to the consumer who want to add vital vitamins and minerals to their everyday routine.

ACTIVETargeted to consumers who need products to support their daily physically activities.

SLIMTargeted specifically to consumers who desire products that support their weight conscious lifestyle.

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Page 12: Justin Ryan Thomas; Repositioning Skippy Peanut Butter: Ad Campaign Book

For consumers who value customized products, S K I P P Y isthe only brand of PEANUT BUTTER tailored to complement their specific lifestyle needs.

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As we have stated, consumers are given few choices in

the peanut butter category. Each brand on the shelf has

the same product offerings therefore, consumers don’t

identify with these options as “the perfect peanut butter

for me.” The new positioning allows consumers to view

Skippy as a product that helps them in their daily

endeavors. Skippy is no longer just peanuts in a jar but

rather a complement to the unique lifestyle of each

consumer.

Because the new Skippy is a customized product, the

core “Skippy Classic” brand will no longer exist. As

consumers become aware that they deserve a

peanut butter that helps them achieve their desired

lifestyle, a generic “one size fits all” peanut butter

will become obsolete and no longer necessary in the

marketplace.

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Page 13: Justin Ryan Thomas; Repositioning Skippy Peanut Butter: Ad Campaign Book

Let’s face it: peanut butter ads have been as boring

and predictable as the product inside the jar for

decades. Whether it’s a mom making sandwiches for

school lunches or kids making a mess of the midday

snack, we know what’s coming next. These ads have

been relatively successful in maintaining market share

for the “Big 3” but ultimately they have alienated just

about everyone who’s not a child or a parent.

So the question is, how do we re-engage these

consumers?

In the new “Life’s Best Complement” campaign we

have given consumers a specific reason to reach for

Skippy. The ACTIVE, HEALTH , and SLIM formulations

complement their unique lifestyle.

We have chosen to play on the duality of

“complement” and “compliment” by allowing SKIPPY

to compliment the everyday achievements and

milestones of the user.

ObjectiveIntroduce the consumers to the notion that they deserve to chose the variety of peanut butter that best fits their needs.

TargetMales and females18-34 who desire customization and personalization in their everyday life.

Current Position“Fuel The Fun”- For kids who look to peanut butter for a fun and exciting snack.

Competitive FrameUnique, benefit-oriented formulation

Consumer PromiseThrough its customized varieties, skippy complements your lifestyle

EvidenceIn a category with little variety and differentiation between brands, consumers want a peanut butter that has specific benefits to help them achieve the lifestyle they desire.

VoiceLight-hearted, casual, complementary, humorous

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Take this compliment to Jamba Juice and we’ll

thank you with a FREE 16 oz

Skippy Smoothie.

CHOOSE YOUR COMPLEMENTActive, Health, or Slim

You look great today!-Skippy Slim

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Page 22: Justin Ryan Thomas; Repositioning Skippy Peanut Butter: Ad Campaign Book

Objective: Create awareness for the new Skippy brand within our target market of 18-34 year olds. Infiltrate multiple media outlets such as TV, magazine, outdoor advertisements, internet, and co-ops to reach this key demographic and gain brand awareness and ultimately brand preference.

Approach: Offensive

Who: People who are looking for customized products to fit their everyday lifestyle. Skippy provides the customization that the consumer is looking for in the peanut butter market.

What: Media targeted at the demographic of 18-34 year olds valuing customization.

When: Launch buzz period in November. One-year campaign /Continuous scheduling on multiple media outlets

Where: We are targeting the United States as a whole, while reaching our key demographic through the most used media outlets. In addition, we have a strong focus on social networking which the brand hasn’t used frequently in the past.

How: Obtain optimal levels of both reach and frequency through the following media outlets:

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OnlineBanner adsPodcasts, blogs, mobile, social networking

Traditional MediaTVMagazines

OutdoorBillboards/Mosaics

Specialized MediaCo-Op with Jamba JuiceConan O’Brien spotAthletic Events

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Page 23: Justin Ryan Thomas; Repositioning Skippy Peanut Butter: Ad Campaign Book

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Buzz Period Introduction Dispersion Market SaturationMonth of Year 2010 November December January February March April May June July August September October

BUZZConan O'Brien

PodcastsBlogs/Video Blogs

MobileTwitter/Facebook

MAGAZINEWomen:

CosmopolitanSelf

Marie ClaireCooking Light

Good HousekeepingBetter Homes and Gardens

Men:Men's HealthMen's Journal

Sports Illustrated

OUTDOORBillboards

Building Mosaic

INTERNETBanner Ads:

ESPN/sports sitesWomen's Health Sites

Men's Health SitesNutrition SitesFitness Sites

Active lifestyle Sites

TVABC/NBC/CBS

MTV/E!ESPN/Sports Channels

Cooking ChannelsTalkshows: Ellen, Oprah

Nightly Local News

Co-OpJamba Juice

PRPictures of Athletes with Skippy

SlimActiveHealth

Combination

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Page 24: Justin Ryan Thomas; Repositioning Skippy Peanut Butter: Ad Campaign Book

We have compiled a marketing plan that targets consumers who favor customization and are more susceptible to trying new products that are geared toward their lifestyle. This marketing plan will prove beneficial because our target demographic is comprised of highly-connected individuals who value a product that benefits their unique lifestyle.

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OnlineBanner ads

Selection: Introduction-Dispersion-Market Saturation

Timeline: January –October

Rationale: Banner ads will begin running after the buzz period, the months of November and December. The public needs to be aware of the product before banner ads can be run. Banner ads do not create awareness, just further inform the public about the product.

Podcasts, blogs, mobile, social networkingSelection: Buzz Period

Timeline: November-December

Rationale: These different forms of networking will create awareness and bombard the public from all angles. This will create buzz and the public will seek out answers to understand the new product and gain comprehension.

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Page 25: Justin Ryan Thomas; Repositioning Skippy Peanut Butter: Ad Campaign Book

Traditional MediaTelevision

Selection: Buzz Period-Introduction-Dispersion-Market Saturation

Timeline: November-October

Rationale: Television reaches almost every home in America. To accurately reach our key demographic, Television would maximize awareness and reach consumers who may see alternate media outlets.

MagazinesSelection: Buzz Period-Introduction-Dispersion-Market Saturation

Timeline: November-October

Rationale: Magazine circulation is a popular form of casual reading. Through this outlet, we will be able to generate awareness and introduce the product to the market. Therefore, the consistent ads in a consumer’s weekly magazine will promote the product until the market is fully saturated.

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OutdoorBillboards/Mosaics

Selection: Buzz Period-Introduction-Dispersion-Market Saturation

Timeline: November-October

Rationale: Billboards and building mosaic are used to create awareness, but after the buzz period is over, they are still useful for recall throughout the process of the public learning and purchasing the product.

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Page 26: Justin Ryan Thomas; Repositioning Skippy Peanut Butter: Ad Campaign Book

SpecializedCo-op Jamba Juice

Selection: Introduction-Dispersion-Market Saturation

Timeline: January-October

Rationale: Co-ops promote the brand in a subtle yet identifiable way. When introducing the new Skippy, it is important to identify that the brand can be paired with other products used in consumer’s daily lives. As people become more aware of the product, they can begin to take action in using the product in various ways. Furthermore, paring with a brand that is already well-established and promotes the same core values as Skippy. Both brands promote a well-balanced life based on the individual customer’s needs.

Conan O’BrienSelection: Buzz Period

Timeline: November-December

Rationale: Conan O’Brien is moving his late night talk show to TBS. He has a large following of people and a large demographic will tune into his show the first week it airs. Conan will personally introduce the brand and new product and this will create buzz and awareness.

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Pictures of Athletes with SkippySelection: Introduction, Market Saturation

Timeline: January, February, August-October

Rationale: These pictures will go hand in hand with big sports games that are happening. January is when the Super Bowl occurs and has the largest audience on television. February is when March Madness starts. August through October is an overlap of Baseball Playoffs and Pro and College Football beginning their season.

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