EZPB Marketing 300 Project Team #7 Dave Bissinger Tim Cahill Jessica Clark Meaghan Cleary Steve Cullen 1
Nov 12, 2014
EZPB
Marketing 300
Project
Team #7
Dave Bissinger
Tim Cahill
Jessica Clark
Meaghan Cleary
Steve Cullen
Table of Contents:
1
Cover Page………………………………………………………………………………
1
Table of
Content……………………………………………………………………….2
Executive Summary…..
……………………………………………………………..3-4
Industry Revenue………………………………………………………………….4-7
Product Profile…………………………………………………………….………..7-9
Statement of Marketing Objectives……… ……………………………………9-
10
SWOT
Analysis…………………………………………………………………………………
…………….10-11
Market Segmentation/Target Market
Strategy…………………………………………………12-14
Market-Product
Grid……………………………………………………………………………………….
14-15
Environmental
Factors……………………………………………………………………………………
15-18
2
Marketing
Strategy…………………………………………………………………………………
………19
Conclusion………………………………………………………………………………
…………………….20
Recommendations……………………………………………………………………
………………………...21
Works
Cited………………………………………………………………………………………
………………..22
Executive Summary
Imagine the process of making a peanut butter and jelly
sandwich. Now reflect upon the thought of effortlessness that would
occur when not having to get out silverware, spreading the peanut
butter and jelly, and then putting the containers away. This notion is
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tactfully accomplished by the company EZPB, who aims to give peanut
butter and jelly lovers an easier and faster way to making one. EZPB
offers consumers the same great experience and the same delightful
taste that you would get when using peanut butter and jelly out of the
jar. EZPB is peanut butter and jelly mixed together in the form of a
cheese slice that can be peeled out of a wrapper and placed on the
bread without the use of silverware.
EZPB was first thought of by Steve Cullen when he was in grade
school. He always liked to make peanut butter and jelly sandwiches,
but would always make a mess. He knew there had to be an easier
way to make them and after serious thought, he wondered why peanut
butter slices couldn’t be packaged like cheese slices. When he was in
fifth grade he presented his idea to the class. Unfortunately, his
teacher thought the idea was not worthy of the classes time. It’s
always been a dream of his to create this product. When he was in
college, he discussed this idea with Tim Cahill, who had just told him a
story about a roommate that came home one night and decided to
attempt to make a peanut butter and jelly sandwich. Tim woke up the
next morning to find peanut butter all over his kitchen. After the two
talked about this, they developed a plan to create EZPB. Beginning in
1997, the two began their development of the product. From there,
the two teamed up with Jessica Clark, Meaghan Cleary, and Dave
Bissinger to create a new and innovative product.
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What makes EZPB such an exciting product is the lack of effort
and time that it alludes to when making a peanut butter and jelly
sandwich. Without having to use utensils, it makes making a peanut
butter and jelly sandwich quicker and easier. It is also all-natural and
therefore a very healthy and energizing product. EZPB reaches out and
helps all different types of people. Working mothers who don’t have
time to make their children’s lunches, college students who might not
have a kitchen accessible, and cafeterias that need a faster way to sell
one of their most purchased items all benefit from this new product.
The mission of EZPB is to offer a high quality, healthy,
energizing, and easy alternative to the traditional peanut butter and
jelly sandwich. At a competitive price that satisfies customers, EZPB
will also establish a positive and efficient environment for all
employees.
Industry Profile
The peanut butter industry is not just measured by the
production of peanut butter; the market also includes any sort of
establishment that deals with the production of salted, roasted, or
canned nuts, nuts that are cooked or dried, or processing grain or
seeds. This market alone is a multi-billion dollar industry that is
comprised of more then 190 different companies and producers. It is
extremely large and the money is very promising due to the regularity
of the products use. The industry's revenue for 2007 was
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approximately 7 billion US dollars, with an estimated gross profit of
55%. The importing market was valued at 163.1 million US dollars from
55 countries. The industry also exported 381.5 million US dollars worth
of merchandise to 117 countries. Adding import value and subtracting
export value from the industry's shipment value, the total domestic
demand for the industry in 2007 was 6.8 billion US dollars.
Trends YearUnited
States
Number of
Establishments
2004 191
2005 192
2006 193
Employment
2004 11,228
2005 11,219
2006 11,363
Numeric Change
from Previous
Year
2005 -9
2006 144
6
Percent Change
from Previous
Year
2005 -.1%
2006 1.3%
Wages Year United States
Total Payroll Wages
2004 $386,238,940
2005 $396,548,987
2006 $412,416,376
Average Annual Wage
2004 $34,400
2005 $35,346
2006 $36,296
Average Weekly Wage
2004 $662
2005 $680
2006 $698
The peanut butter industry is an important processed food
industry in the United States. Approximately fifty-three percent, of all
domestically produced peanuts, are used in the production of peanut
butter. In 1993, the per consumer consumption of peanut butter in the
United States reached a high of 3.3 pounds per year. In 1990, the top
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three firms were Procter and Gamble Co., ConAgra, and CPC
International Inc. They manufactured the national brands of peanut
butter: Jif, Peter Pan, and Skippy. This accounted for 75 percent of the
market share. A 1996 survey, by Gallup Organization, found that 63
percent of the households buy the same brand of peanut butter every
time. Thus, there is brand loyalty in the peanut butter market.
However, by 1995, the share of the top three brands lowered to about
70 percent, where Jif, Peter Pan, and Skippy accounted for 31.6
percent, 19.6 percent and 20 percent of the market share. The rest of
the market is shared by fringe suppliers who produce generic, regional
or store brand peanut butter. These regional brands have a production
capacity of 32 million pounds per year, and that national brands have
production capacity larger than that.
The competition in this market is very tight. These three
powerhouse companies in this market make it hard to penetrate with
out uniqueness to the product. Companies like Smuckers have come
up with interesting products like pre-jarred peanut butter and jelly
already together in the bottle for easier use and lower costs than
buying both products separately. They have also generated the idea of
“Uncrustables”, which are pre-packaged PB&J sandwiches with out
crusts that are kept frozen until eaten. Another company very similar
to ours is called P.B slices, which sells pre-packaged slices of just
peanut butter, much like the appearance of Kraft singles.
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Product Profile
EZPB saw a need that was not yet met in the peanut butter and
jelly market. Today’s world is based on speed and how fast we can
access a thing we need and that’s what it delivers. With our product,
you can make yourself a peanut butter and jelly sandwich in less than
15 seconds if you desire. Also, we noticed that peanut butter and jelly
sandwiches tend to cause a big mess, so we altered the process to just
one slice placed on a piece of bread and ready to go. At EZPB, we took
a look at this advancing industry and decided to take a step in a
direction not yet taken by any other company. We saw that the whole
process of making a peanut butter and jelly sandwich was really more
time consuming and messy then it needed to be. If making a regular
sandwich with the usual products, you can create nothing more than a
time consuming disarray of dirty silverware, dishes, and even yourself
in some cases. We found the need to create our product to reduce the
clutter, time, and cost of making old fashion regular peanut butter and
jelly sandwiches. So we came up with the pre-made peanut butter and
jelly slices that are not only delicious, but healthy as well. Our product
is more filling then P.B slices, fresher than “Uncrustables”, and not as
messy as the already jarred together PB & J.
Today our product is made from fresh peanuts shipped from
South America, and the jellies are made out of fresh fruits from the
best suppliers in the nation. EZPB supports local businesses and
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suppliers for all of its flavors. We offer Chocolate, banana, apple,
raspberry, strawberry, marshmallow, and grape. We also manufacture
and sell our own peanut butter, which is something that no other
peanut butter companies do. We oversee every step in our production
to ensure the quality of our product. Our factories are located in San
Diego, Boston, and St. Louis. These locations in the east coast, west
coast, and midwest allow us to ship our product more efficiently and
permit us to keep up with the constant demand for EZPB. All of our
factories are up to the regulations standards of the United States
government and undergo inspections weekly.
Each product comes in a pack of 20, 50, or 100. The 20 slice
pack sells for $4.99, the 50 for $7.99, and $14.99 for 100. EZPB is a
healthy treat for anyone of any age. Our all natural preservatives and
great quality of product make our slices taste fresh even months after
they have been prepared.
Nutritional facts- Per serving- serving size = 1 slice = 3tbs.
Serving Size 3 Tbsp. (53g)Calories 240 Calories from Fat 110
Amount/Serving %DV *
Total Fat 13g Saturated Fat 2.5g Trans Fat 0gCholesterol 0mgSodium 140mgTotal Carbohydrate
19 %11 %
0 %6 %8 %
10
24g Dietary Fiber 2g Sugars 21gProtein 7gVitamin AVitamin CCalciumIron
8 %
0 %0 %2 %4 %
*Percent Daily Values (DV) are based on a 2,000 calorie diet.
Statement of Marketing Objectives
EZPB’s marketing strategy is to present the advantages of our
product in the billion dollar peanut butter and jelly industry, stressing
our points of difference: healthiness, convenience, low cost and great
taste. The array of options in flavors, packaging and nutritional value
we produce will target a wide market creating immediate awareness.
Below is a brief overview of our marketing strategy.
New Customers: By providing a focused assortment of new and
convenient options for consumers, EZPB will spark interest among
various segments in the peanut butter industry. 63%, of this billion
dollar industry, has been shown as brand loyal consumers. We hope to
break into the 37% who have not yet made a brand commitment, while
creating curiosity in the brand loyal consumer segment as well. By
stressing our points of difference, we will take brand loyal customers
from other companies. Also, by offering coupons, free samples, and
give--away’s we will build customer loyalty and word of mouth.
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New Markets: Within 2-3 years EZPB assortments will expand to
corporations who sell products in bulk to school cafeterias ranging
from elementary to college level. This is a fragmented, lucrative
market with considerable upside potential. We also plan to partner with
health food grocery stores to sell our product nation-wide. These stores
include Trader Joes and Whole Foods
New Products: Slices will be launched in a variety of flavors and
packaging alternatives. Some new flavors are peanut butter and
chocolate, peanut butter and different flavored jelly, and marshmallow
fluff. As sale revenues increase, we will phase in even more varieties
using the consumers as our development team. We will also appeal to
children by making our slices into shapes, Disney characters, and
animals.
Product Placement: The nutritional appeal of our organic product
combined with unique packaging alternatives and traditional product
placement should appeal to retailers looking for new and innovative
placement opportunities (product section, snacks, cash wraps, etc.).
SWOT Analysis
You will find in Figure 1, critical internal and external factors describing
the marketing opportunities of the EZPB slices since the company
began.
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Figure1. SWOT Analysis for EZPB
Internal Factors
Strengths: - Executive team of EZPB has a
similar lifestyle from growing up in a fast paced and efficient environment as that of its primary target markets.
- Organic Peanuts and fresh fruit provide for healthy eating habits with same great taste.
- EZPB has been able to create curiosity among 3 dominate target markets
- Our ability to produce options keeps more consumer interest and needs met.
- Our new production technology will enable us to mass produce products more efficiently and quickly than our competitors.
Weaknesses:- The more flavors we create,
the more production costs will increase
- Creating shapes in the slices for children will increase price of production.
- New technology and production methods will necessitate greater training and back-up needs.
External Factors
Opportunities:- Creating a healthy product
that provides options in flavors and nutritional value will intrigue new consumers
- Healthy ingredients will allow us to break into the diet consumer.
- Being a new company will
Threats:- Established competition coming
up with similar products using healthy and efficient as its points of difference as well.
- Large companies who have brand loyal customers providing the market with similar products.
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provide us the chance to establish excitement.
- Capacity to market our product outside the sandwich industry, and provide new ideas, such as bananas with EZPB slices will be a real competitive advantage.
- Providing fun shapes that will interest young children will be novel and exciting.
- Switching brand loyal consumers to a smaller and newer company
- Rising material, production, and shipping costs for a new, yet diversified company.
Market Segmentation/Target Market Strategy
The trends in today’s sandwich market are based around the
idea that it needs to be fast, convenient, and pleasing to all. Because
of this, recent studies have shown that sandwiches have become a
household dinner item for fast-paces, busy families. “A study released
by the NPD Group, which researches consumer trends, says more than
one in nine dinners at home is a sandwich” (Bleimes 1). Not only are
sandwiches served for dinner, but they are the main dishes in kids’
lunch boxes. Peanut butter and jelly sandwiches have been a crowd
favorite since it was invented in the 1920s and the fact is still true
today. “Eighty percent of moms and dads rely on peanut butter
sandwiches for their kids’ lunch boxes, finds a Harris Interactive poll of
2,066 adults” (Moulton 1).
The sandwich market is confined to people who have the need
for a fast, convenient and tasty treat to keep them energized and
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healthy. We found that the markets with the most need for this product
are busy college students, working parents, and cafeteria workers
trying to make mass amounts of sandwiches. We feel that these target
markets are similar because all have the same need. Therefore, we
grouped our buyers into one market- those who need speedy results.
EZPB‘s point of difference are that our products are faster,
cheaper, healthier and more convenient for customers. It’s healthy,
energy boost allows customers to continue in their day effectively.
While some products are very processed, EZPB is homemade and
therefore has better quality overall. It not only tastes better, but is
better for you. It uses organic peanut butter and real fruit jelly to
ensure the great taste and nutrition. Therefore, all products used to
make EZPB are all-natural. The product is also designed to entice
children with a variety of different shapes, such as Disney characters
and animals.
Working parents and busy mothers rarely have time to make
lunch for their children. By using our product, all they need to do is
take an EZPB out of the refrigerator and put it on a slice of bread. The
steps are so easy and it could cut 5-10 minutes from their morning to
take for themselves. The goal of the product is to make life easier on
parents and to satisfy the children’s need. The cost is a great deal less
than buying both jars and of peanut butter and jelly and is therefore
affordable to almost any family’s income.
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College students rarely have the time or energy to take out
peanut butter, jelly and bread and make a sandwich. This product is so
easy that they can make it on their way out the door to their classes,
sports, or any activities. It is also a healthy way for them to stay
energized and full through out the day. Many full-time students rarely
have time to grab lunch or dinner. Therefore, they can pack their own
lunches in a convenient and fast manner. The product is also
inexpensive and will fit well into a college student’s budget.
Cafeterias are responsible for making mass amounts of food for
children everyday. They have a limited time to make the dish for the
day. By using EZPB, the cafeterias could cut their lunch preparation
time more than half. They will also be relieved to know that the
children are having a healthy and well-made product, instead of the
fries, burgers, chicken fingers, and pizza sold in most cafeterias. It is
also beneficial to cafeterias because it will save a great deal of money.
When cafeterias buy EZPB in bulk, they save more than 50%, than
buying jars of peanut butter and jelly.
The market segment is organized by the psychographic
customer characteristic. In other words, these three target markets
have a similar lifestyle. Each market has the need for a fast,
convenient and desirable product. This is what these markets are
looking for. Because they have the same lifestyles, these markets can
be segmented in the same way.
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The product is grouped as a way to have a fast, tasty, and easy
lunch. College students can make the snack on the go, busy parents
can make a fast lunch for their children, and cafeterias can cut their
service time in half. However, it is also a quick way to eat breakfast.
Many can use the product in the morning by putting the slices on a
piece of toast, bagel or English muffin. The result is a fast, easy and
delicious snack that can be made on the go! Using EZPB, is also a
great way to serve dinner. Many college students need a quick dinner
before or after school activities. Working moms may need to make an
immediate dinner for their children before sporting events, music
lessons, or before their homework. It is also a great way for cafeterias
to make a fast dinner for after school care children.
Market-Product Grid:
Products: EZPB Meals
Target Markets Breakfast Lunch Between Meals Dinner After
College Students 1 3 3 1 2
Working parents 3 3 1 0 0
Cafeterias 0 3 3 0 0
(0= No market, 1=Small market, 2=Medium market, 3=Large market)
The market size for each target market is extremely large. A
great deal of working families exists across the United States and will
definitely use this product to make their lives easier. Also, by selling
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EZPB on college campuses, we will expand to a larger market. By
selling the product to cafeterias all over the country, we will hit a major
market. We also expect this product to take off once word of mouth
and customer satisfaction increases.
There is a great deal of competition out there, but we feel since
our product is less processed and healthier, that our product is
superior. We will continue to strive for new customers while also
maintaining our target markets. We will market to working mothers,
on-campus students and public school boards. Our marketing
campaign consists of giving free giveaways and trials for families,
students, and cafeterias. We plan on having workers in super markets
giving away free samples. Therefore, parents will try our product and
buy it for their children’s lunches. For college students, we plan to
have free samples on college campuses. And also give them to school
cafeterias to try them on their customers and students. This will spread
word of mouth and make our product more successful. Through the
visual appeal commercials will be used to play on family networks to
entice kids and parents to buy the products.
Environmental factors
Societal: Peanut butter and jelly sandwiches continue to be a staple in
the American diet. Our new product idea was generated through our
own and others' experience with a common problem among our target
market; the mess and inconvenience of making peanut butter and jelly
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sandwiches. College students, especially late at night, create messes
trying to use ingredients such as peanut butter and jelly. Young
children trying to help prepare their own food also face similar
problems their parents would like to avoid.
Economic: The economy is in a slump so people are more reluctant to
use their income on new products that may or may not provide a
benefit to them. Instead they may stick with tried-and-true
alternatives. This may present a marketing problem until our customer
base is aware of our more convenient alternative. Our product is
relatively inexpensive compared to its alternatives; this could have a
positive sales impact.
Technological: The manufacture of peanut butter has remained
relatively unchanged, since 1922. More jelly manufacturers are
starting to use sugar alternatives for a healthier product, but since
EZPB is natural and organic we will use real fruit sugar instead of a
substitute.
Competitive: Our competition would mainly be companies that
process peanut butter and jelly individually. The leading American
seller of peanut butter is Jif, made by the J.M. Smucker Company. J.M.
Smucker is also #1 in sales of jelly products.
Regulatory: We would have to abide by the FDA regulations
regarding food processing. Peanut butter: "Such seasoning and
stabilizing ingredients do not in the aggregate exceed 10 percent of
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the weight of the finished food. To the ground peanuts, cut or chopped,
shelled, and roasted peanuts may be added. During processing, the oil
content of the peanut ingredient may be adjusted by the addition or
subtraction of peanut oil. The fat content of the finished food shall not
exceed 55 percent when determined as prescribed in 'Official Methods
of Analysis of the Association of Official Analytical Chemists,' 13th Ed."
This basically means we must use 10% or less of seasonings and
stabilizing ingredients. This should not be a problem since our peanut
butter is all-natural. Jelly: "The mixture referred to in paragraph (a) of
this section shall contain not less than 45 parts by weight of the fruit
juice ingredients as measured in accordance with paragraph (d)(2) of
this section to each 55 parts by weight of saccharine ingredient as
measured in accordance with paragraph (d)(4) of this section. " This
means the amount of sugar substitutes in our product may not exceed
55%. Once again, since our product is natural artificial sweeteners will
not be a problem.
Marketing strategy
Product Strategy: We will market EZPB as an alternative to peanut
butter and jelly. It is easier to prepare food and more convenient for
busy schedules. Our product is made using organic peanuts processed
with natural fruit jelly and cooled in order to keep its shape until
actually used. Flavors include banana, strawberry, grape, marshmallow
fluff and chocolate.
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Price Strategy: Our price will be discounted compared to buying
peanut butter and jelly products individually. This is more cost
effective for consumers since this product combines two into one
single product. We will use a penetration pricing strategy because our
product is not well-known. We will keep our price low during early
phases of our product's life cycle in order to sell a higher volume and
increase interest in our product through word-of-mouth.
Pricing: $4.99 for 20 slices, $7.99 for 50 slices, and $14.99 for 100
slices.
Promotion Strategy: We will market the product to our targeted
market segments, especially college students and mothers with young
children. Our promotional strategy will include free sample giveaways
in stores and on campuses in order to generate interest in purchasing
our product. We will also use our slogan "No mess, no stress" to make
consumers aware of the two major points of difference between our
product and our competitors. To generate interest among children,
EZPB will incorporate shapes from children's television programming
onto our product; for example, putting shapes of Disney characters
onto our slices.
Place Strategy: We will connect our manufacturing centers to large
family-oriented retailers such as grocery stores. To build interest
among college students, we will sell to retail outlets such as the
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Marianist emporium on different campuses. We will also market to
health food stores such as Trader Joe.
Conclusion
The peanut butter and jelly sandwich is a world-wide treat that
has been around since the 1920’s. For over 80 years now, there has
been the traditional way of eating the sandwich involving spreading
peanut butter and jelly on two pieces of bread. The sloppy way of
making the sandwich is the most famous way, but it took time, made a
mess, and required a utensil of some sort. In the fast pace world that
we live in, there is a necessity for less time consumption and more
convenient products. EZPB is an easy, healthy, energizing, and high
quality alternative to the sandwich. EZPB plans to make a substantial
difference in the billion dollar peanut butter/jelly market. The product
gives all people an easier and healthier option while still satisfying
their desire for a delicious peanut butter and jelly sandwich. EZPB
makes a peanut butter and jelly sandwich more convenient for the on
the go world we live in today.
Recommendations
“As a mom with 3 kids, life becomes so much simpler just by saving a few minutes everyday, it’s a healthy sandwich and my children can’t tell the difference!” ~ Sandy Cohen, soccer mom
“Never underestimate a 5th graders creative mind, what might seem like a doubtful idea, could be the next billion dollar invention” ~ Mrs. Drofnalb, 5th grade teacher
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“Ever since I started using EZPB, I have eliminated messes in the kitchen, and my diet has improved immensely! It is the perfect meal when I wake up five minutes before class and need a quick bite to eat” ~ Patrick Bateman, student at Ohio State University.
“My kids always want to help out, but every time they made their own sandwiches they would end up making a mess all over the kitchen. Now I just hand them the bread and a stack of EZPB and we’re both happy!” –Cathy Smith, Model, mother of three children.
“When I started my new diet, I thought I would have to give up one of my favorite foods – peanut butter and jelly. It was just too high in sugar and fat. With EZPB, I can still enjoy my favorite snack without worrying about gaining weight.”-Marcus Halberstrand, Business Sales Assoc.
Works Cited
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Approach. University of Georgia. 1998. 1-24. 2 Apr. 2008
<http://www.agecon.uga.edu/publications/fs98-01.pdf>.
Moulton, Sarah. "PB&J with a Twist." Prevention 52.2 (2006): 52.
Academic Search Complete. EBSCO. Roesch Library, Dayton. 2
Apr. 2008.
Owen, Thomas. "When PB First Met J." Christian Science Monitor 90.90
(1998): 9. Academic Search Complete. EBSCO. Roesch Library,
Dayton. 2 Apr. 2008.
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Roasted Nuts and Peanut Butter Manufacturing Industry in the U.S. and
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11911wa
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