Situation Analysis Analysis Table of Contents Executive Summary Company Analysis Product Analysis Marketing Analysis Industry Overview Consumer Analysis Competitor Analysis Brand Equity

Eimear ArkinsAlise MurawskiAmanda Narverud

Travis RuppMadison WilliamsClaire Wright

Situation Analysis

Table of Contents

Executive Summary

Company Analysis

Product Analysis

Marketing Analysis

Industry Overview

Consumer Analysis

Competitor Analysis

Brand Equity and Positioning

SWOT Analysis

Recommendations

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Executive Summary

Our objective is to provide guidance and market advice for Newman’s Own. The following information focuses on Newman’s Own’s current positioning within the U.S. Seasoning & Dressing Manufacturing Industry. The planbook summarizes comprehensive secondary research, on the company and product, consumer data, and competition that can potentially influence future strategies of Newman’s Own.

Some of the key findings include: Newman’s Own’s value is derived from the value it gives to customers, through food, through giving, and through the authenticity of its brand even as it expands globally.

The US Seasoning and Dressing Manufacturing Industry is mature and concentrated. Salad dressing accounts for approximately 10 percent of the industry and this segment is expected to grow modestly over the next five years.

Millennial consumers are drawn to spicier flavors than older generations.

Millennials not only want to give back through their purchases, but expect a company to have a charitable component as well.

In order to stand out in the salad dressing market, brands must differentiate themselves through product innovation to avoid competing solely on price because many consumers think of sauces, dressings, and spices as commodities bought solely based on price.

To accomplish the objective of this analysis we have created a target profile, analyzed the brand essence of Newman’s Own, examined the current positioning, and conducted a SWOT analysis.

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Newman’s Own Founder: Paul Newman

Paul’s craft was acting, his passion was auto racing, his love was his family and friends. But his heart and soul were dedicated to helping make the world a better place. His commitment to philanthropy was clear — he used his influence, gave of his financial resources, and personally volunteered to advance humanitarian and social causes around the world.

While Paul Newman was a Hollywood star of extraordinary celebrity and a person recognized for exceptional commitment and leadership for philanthropy, he lived his life as an ordinary person. He liked to use the word “lucky,” to describe his success and fortune, and was concerned with helping those who were “not as lucky,” as himself. Self-effacing and down to earth, Newman was heavily involved in every aspect of the product creation process, including taste tests.

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The Story of Newman’s Own

On a winter’s day in 1980, Paul Newman and his friend A.E. Hotchner mixed an enormous vat of oil and vinegar salad dressing in Newman’s basement with a canoe paddle – parchment labels on elegant wine bottles, they gave it away to his neighbors as holiday gifts. The dressing was a success and formed into a small, boutique operation by 1982. The first batches of Newman’s Own were this same Oil and Vinegar Dressing. The first year of profits exceeded $300,000 and Paul Newman declared, “let’s give it all away to those who need it.”

Newman’s own has continued to donate 100 percent of after-tax profits to charity and continued Newman’s vision of “quality always trumps profits” and “if we make any money, we’ll give it all to charity.”

Today, Newman’s Own produces nearly 100 individual food products across 20 categories. Always great tasting, always top quality; just the way Newman insisted.

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Vision

Newman’s Own, Inc. carries on the legacy of Paul Newman not just through wholesome and tasty food, but also through philanthropy to the highest degree. The value inherent to Newman’s Own is how it makes others feel valued, through food and through giving.

Promise to Customers

Paul Newman would never put anything in his line of products he wouldn’t eat himself. He was a simple man with simple tastes and a huge hunger to give back to those he felt were less “lucky,” as he put it, than him. Newman’s Own delivers delicious salad dressing, and other products, while at the same time nourishing the soul through selfless giving.

Mission

Newman’s Own’s mission is to continue Paul Newman’s legacy by making great tasting high quality food and

donating all profits to charity.

Partnerships

Newman’s Own has strategic partnerships with McDonald’s, Costco Wholesale, and Trinchero Family Estates. Newman’s Own salad dressing is the only dressing served with McDonald’s premium salads nationwide since 2003. Flavors available include Ranch, Southwest Creamy Caesar, Low Fat Balsamic Vinaigrette, Low Fat Family Recipe Italian, and in some markets, French. Since 2002, Newman’s Own has partnered with Costco to market its Kirkland Signature Newman’s Own Grape Juice. Trincheo Family Estates helps Newman’s Own develop its line of fine wines.

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Newman’s Own Foundation was established in 2005 by Paul Newman to ensure that the company could give the money it had to those who needed it. It provides grants of various monetary sizes to organizations that fall in step with its own Foundation Values. Additionally, the first Hole In The Wall Gang Camp opened in 1988, and has since led to the creation of many more camps for children with life-threatening and terminal diseases where Paul Newman imagined they could “raise a little hell.”

Foundation Mission

Newman’s Own Foundation

Foundation Values

Common Purpose: We treasure the virtuous circle of Newman’s Own. Freedom to Dream: We are a creative and inclusive idea factory that can respond and adapt quickly. Trust & Respect: We trust and respect our colleagues. Quality: We execute with excellence and the highest level of transparency, ethics, and integrity. Serious Fun: We take our work seriously but not ourselves.

“Newman’s Own Foundation uses the power of giving to help transform lives and nourish the common good.”

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Foundation Operations

As the sole owner of Newman’s Own, Inc. (the Company) and all the licenses related to the food and beverage business, Newman’s Own Foundation, a 501(c)(3) charitable organization, receives all profits earned by the Company in the form of a dividend payment, and receives 100 percent of the royalties paid by the Company and other licensees. All profits and royalties received by Newman’s Own Foundation are used by the Foundation exclusively for charitable purposes to include support to other charities around the world and for Foundation managed charitable programs. When Paul Newman was alive, and up until 2005 when the Foundation began to operate as the sole owner of the Company and licenses, Paul personally donated 100 percent of the profits and royalties he earned to charity. He never took any compensation or other benefits from Newman’s Own. From 2005 to his passing on September 26, 2008, the contributions to charity continued from Paul and the Foundation. Together, as of the end of 2014, the total paid to charity by Paul Newman and the Newman’s Own Foundation was $429.3 million. Newman’s Own does not accept unsolicited grant applications or requests.

Foundation Focus Areas

In recent years, giving was concentrated in four Focus Areas where the Foundation believed it can have an impact:

1. Children with Life-Limiting Conditions These organizations enhance the quality of life for children with life-limiting medical conditions, or for whom the experience of childhood has been disrupted by circumstances beyond their control. SeriousFun Children’s Network, founded by Paul Newman, is a network of aforementioned camps for children with serious and life threatening diseases that benefits from the company. 2. Empowerment These organizations empower people to overcome extraordinary adverse circumstances, provide equal access to human rights and contribute to the development of a civil society. The Farmer Veteran Coalition, which both mobilizes veterans to help feed America and revitalizes agriculture, is included in this list, along with the Partnership with Native Americans to empower those living on isolated and remote, often resourceless, reservations, and the Safe Water Network, which provides safe water supplies to those in need.3. Nutrition These organizations implement model solutions to issues of hunger and nutrition for underserved communities. Edible Schoolyard New Orleans and Edible Schoolyard NYC is an example of a program benefitting from funding, which helps children build and maintain relationships with healthy food, the natural world, and their community. The Food Trust and the Food Corps are also similar organizations striving to give everyone access to healthy food and health information. 4. Encouraging Philanthropy These organizations promote the practice of philanthropy and some rely on philanthropic support to fulfill their missions. They include the Connecticut Council for Philanthropy, which is an association of grantmakers committed to promoting and supporting effective philanthropy, as well as Net Impact, a nonprofit that helps a new generation use their future careers to change the world.

Additionally, but not included in the Four Focus Areas, is the fact that Newman’s Own Foundation has a strong record of support for organizations that assist military personnel, veterans, and their families. From 2010-2015, more than $11 million was committed to military-focused nonprofits.

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Financials

Newman’s Own Foundation owns Newman’s Own, Inc and other holdings. According to Newman’s Own Foundation’s 2013 990-PF Federal Return of a Private Foundation, the Newman’s Own Foundation donated $23,414,000 in charitable grants to various non-profit recipients which fell into their four Focus Areas. The Foundation took in $37,906,184 in income in 2013 from its holdings. To date, Newman’s Own Foundation has donated over $400 million to charity.

Paul’s authenticity was undeniable, and his legacy continues, even years after his passing in 2008. For more than 30 years, quality trumps profit and Newman’s Own is led by a philanthropic mission to serve its charity stakeholders,

which inform the organization’s decisions and furthers its success.

“It’s not that the children say,

“Thanks for a wonderful time.”

It’s that they say,

“Thank you for changing my life.”

- Paul Newman

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Product Analysis

1982: Newman’s Own was founded with the slogan: “Shameless Exploitation in pursuit of the Common Good.”

1983: Pasta Sauce was introduced.

1984-1990: Lemonade and Microwave Popcorn were introduced.

1991: Bandito Salsa hit store shelves.

1997: By this year, Newman’s Own expanded to Australian, United Kingdom, Canadian, and New Zealand markets.

2005: Newman’s Own Foun-dation was founded by Paul Newman to “ensure that the company’s philanthrop-ic outreach would continue.”

2008: Paul Newman passed away.

2011: Frozen Skillet Meals hit store shelves.

2012: The SeriousFun Children’s Net-work was officially launched, bringing together 38 camps across the world that have served children since that first Hole in the Wall Gang Camp in 1988.

2015: Newman’s Own redesigned website, adding previously separate organic products to its product lineup, including Snacks, Candy, Cookies, and Pet Food.

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Product Categories

Newman’s Own offers 20 product categories ranging from salsa and popcorn to wine and dog food.

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Flavor of dressings

Newman’s Own has 27 different flavors of dressings.

The flavors are split up into three main categories: regular, lite and organic. Below are lists of some of the flavors available in each category.

Regular

Balsamic VinaigretteCaesar

Cranberry WalnutCreamy Balsamic

Lite

Lite Balsamic VinaigretteLite CaesarLite Italian

Organic

Organic Lite Balsamic VinaigretteOrganic Tuscan Italian

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Place of purchase

Newman’s Own dressing is offered at numerous retail locations throughout the United States including but not limited to these stores

Packaging

Paul Newman has appeared on every single bottle, and beginning in 2010, appeared dressed in a theme to match the dressing’s flavor. A short creative narrative is included on the back of the bottle, under ingredients and above nutritional info. The slogan “Shameless exploitation in pursuit of the Common Good,” was dropped in favor of “All Profits to Charity,” though it is still sometimes used in reference to the brand.

However, the only place that “All Profits to Charity,” is referenced on the bottle is on a paper wrapping around the cap, which is likely to be torn off or ripped in the process of opening the dressing. “Fine Foods Since February,” has stayed on the bottle to honor the same good humor with which Newman and Hotchner had that first year of bottling dressing. Further, Newman’s Own prides itself on short, easy-to-navigate ingredient lists.

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Paid Media

Past Print Advertising

Evidence of past advertising efforts was intermittent at best, and did not carry a solid campaign theme through any of the ads. Newman’s Own focuses very much on paid media and does not leverage owned media very well or earned media at all.

Adforum ads

Below are three examples of ad campagins Newman’s Own has paid for in recent years: “Salad Goes to Heaven” campaign, “Cross-Dressing” campaign, and the “Play Around” campaign.

All of these ads were found on Adforum.

Promotional Methods and Marketing

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Owned Media

The Newman’s Own website we began analyzing is different than the website now available, as a site redesign went live on Sept. 25, 2015. The consumer can now easily navigate through the six main categories: Food, Beverages, Recipes, Company, Charity and Pet Food.

Under the Food tab, the website provides a brief description of each salad dressing flavor, including the nutrition facts and ingredients list.

The Pet Food section was recently adopted with the 2015 redesign, as Pet Food was formerly the purview of Newman’s Own Organics, which was separate but under the company until 2014, when it became a full subsidiary of Newman’s Own, Inc again.

According to a 2001 Advertising Age article, Newman’s Own advertised in Martha Stewart Living and O, The Oprah Magazine; additional ads followed in later issues of Bon Appetit Magazine, Cooking Light, MORE Magazine People Magazine and Redbook Magazine.

Past Advertising Spending

Buzzfeed Brand Partnership

In May of 2015, the company partnered with Buzzfeed to release a series of articles, listicles and videos aimed at the core audience of the hit website, millennials aged 18-34 who are most active on mobile devices and apps. This partnership is proof that Newman’s Own is looking to target the younger generation of consumers, and is trying to leverage relevant paid media, even if that leverage isn’t always paying off.

Source: Redbooks.ocm

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Social Media

The only strong social media presence that Newman’s Own currently holds is its Facebook page. They post every couple of days and focus mainly on products and promotional activities. There is very little interaction with consumers on the Facebook page. 65,000 users have liked the page and “likes” on posts vary, from 11 to 599 “likes” on a promotional ad for their “Greens for Good” recipe contest. Consumers’ comments on the posts vary from none to mid-thirties and Newman’s Own infrequently responds to customer comments. A generic “please visit our customer service website” is given for any customer complaint.

Newman’s Own partners with other companies and public figures on Facebook. During the “Greens for Good” recipe contest, celebrity “Top Chef,” Hugh Acheson promotes Newman’s Own and the contest through his Facebook page.

Newman’s Own has a Twitter account with a mere 25 followers. The Newman’s Own Foundation Twitter has a strong showing, with frequent tweets, engagement, and retweets of relevant topics for its 1,255 followers.

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Public Relations

In terms of Newman’s Own’s public relations efforts, major campaigns include:

The “Lighten Up!” initiative in 2011, in which 36 products were declared “better for you,” with renewed promises of health and claims ranging from “light, low fat, reduced fat, fat free, reduced sugar,” to “good source of ALA Omega 3 or high fiber.”

The “Greens for Good” recipe contest

Newman’s Own provided support to PBS flagship station WGBH Boston and First Lady Michelle Obama in their work for the fourth annual Healthy Lunchtime Challenge & Kids “State Dinner,” in April 2015.

In 2012, Newman’s Own sent a combined 60,000 pounds of product to charities across the country in partnership with NBC’s “The Biggest Loser,” to Feeding America Food Banks.

Newman’s Own has partnered with Feeding America multiple times, and had donated 103 refrigerated trucks to food banks across the country in partnership with Ford Motor Company.

Finally, Newman’s Own has given prize money away in the USA Weekend Magazine Make a Difference Day awards to honor citizens for their grassroots volunteering efforts and leadership and has given $200,000 annually for the last two years to military veteran initiatives.

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Earned Media

Print and Online Articles

Newman’s Own has recently earned very negative media regarding one of Paul’s daughters, Nell, as she severed ties from Newman’s Own, Inc and the Newman’s Own Organics line she founded. A Vanity Fair article in the August 2015 issue details the rumored dissonance between Nell, Newman’s other children, company leadership and their father’s legacy and mission. Organics began as a division of Newman’s Own in 1993, and went independent of the parent company in 2001 under a limited-term license approved by Newman himself. This license expired in 2014, and Organics returned to a division under Newman’s Own. Nell parted ways with the company at the end of the license. She is prevented from discussion of the departure, but the Director of Communications for Newman’s Own, Jan Schaefer, calls the content of the article “baseless accusations and innuendos.” Nell is simply quoted as saying, “I don’t think this is what my dad would have wanted.”

Nell founded the Nell Newman Foundation in 2010, separate from the Newman’s Own Foundation, that has “the goal of carrying on her father’s legacy of charitable giving, coupled with her passion for the environment.” Because Newman’s Own is founded on the legacy and charity of Paul Newman, these disagreements, whether real or rumored, shine negative light on the company.

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Forum Activity

On a CookingLight Magazine forum that was last active in 2009, the entire thread was based on not being able to find the Southwestern Salad Dressing served at McDonald’s in stores. One user posted a quote from the website in 2006 that said because the Southwestern Dressing wasn’t formulated to be shelf-stable, it isn’t sold in stores. Balsamic Vinaigrette got rave reviews on the site. There is also a post about using the dressing for something other than a salad, and recipes for how to make homemade own Southwestern.

Did You Know?

Paul Newman’s Forever Stamp from the United States Postal Service was released on September 18, 2015. A Forever Stamp is special because it can be used even if USPS raises the price of postage.

The U.S. Postal Service and the members of the Citizens’ Stamp Advisory Committee (CSAC) have set certain basic criteria for determining the eligibility of subjects for commemoration on all U.S. stamps and stationery. The Postal Service honors men and women who have made extraordinary contributions to American society and culture.

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U.S. Seasoning & Dressing Manufacturing Industry

The seasoning and dressing manufacturing industry includes approximately 600 companies, with a combined annual revenue of about $18 billion. Those companies make spices, dry gravy mixes, seasoning mixes, salad dressings, sauces and natural extracts. The industry does not include companies that make tomato-based sauces (including pasta sauce, ketchup and salsa) or pourable gravies. Pourable salad dressings make up 10 percent of the seasoning and dressing manufacturing industry, and there are an estimated 63 companies in the salad dressing production industry specifically.

Industry Overview

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Competitive Landscape

The U.S. industry is concentrated: the top 50 companies account for more than 70 percent of industry revenue. It is dominated by KraftHeinz, Unilever and The Clorox Company, who account for more than half of the industry’s revenue.

These compete in a large global market and leverage their favorable economies of scale to churn out new dressing flavors and variations. The rest of the industry is comprised of smaller specialty dressing production firms. These companies tend to incorporate premium ingredients or nontraditional flavors to entice consumers.

Industry leaders compete for shelf space and customer mindshare. Smaller companies must have a truly compelling product and a willingness to pay for shelf space to be considered by wholesalers and retailers. Essentially, a company’s profitability in this industry must depend on its ability to differentiate its brands to avoid competing solely on price. Many consumers think of sauces, dressings and spices as commodities bought solely based on price.

What’s happening in the industry?

Leading Salad Dressing Brands in the IndustrySales of the leading shelf stable pourable salad dressing brands in the US in 2013:

Source: Statista

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Top Flavors

According to Statista, 47 percent of American households use ranch flavored prepared salad dressing the most. Created by Hidden Valley in the 1950s, Ranch has consistently proven to be the most popular dressing in the American dressing market.

Most Used Salad Dressing Flavors in U.S., Jan. 2013-March 2014

Source: Statista

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State of the Industry

The salad dressing production industry was one of the few industries to benefit from the economic downturn in 2008, according to an IBISWorld report. With price-conscious consumers shopping at their local supermarket rather than dining out, demand rose for home-use salad dressing. During this downturn, industry revenue showed its strongest gains, rising 5.4 percent on average during 2008 and 2009.

However, since the recession, sales of salad dressing have remained stagnant. The lack of salad dressing sales growth can be attributable to increasing competition from other food categories and a lack of product innovation. Salad dressing is constantly faced with competition from other food categories, such as sauces, dips, and spreads and thus struggles to remain relevant in a food arena that offers a range of competing salad-topping options. Salad dressing appears as a lackluster product with only one use.

Industry Forecast

The market is expected to grow modestly over the next five years owing to an expected rise in demand for convenient, ready-to-eat and nutritional food products. Mintel forecasts minimal 4 percent growth in salad dressing sales through 2019.

Since the employment outlook for Americans looks promising, per capita disposable income is anticipated to increase an annualized 2.4 percent over the five years to 2020. With greater disposable income per capita predicted over the next five years, consumers are expected to dine out at full-service and chain restaurants more frequently. These establishments purchase industry goods in large quantities. Herein lies an opportunity for salad dressing brands to partner with restaurants. But, in addition, as Americans become busier, they will turn to prepared, processed foods that are quick and easy to eat. This need for convenience coupled with an overarching health awareness is paving the way for an increase in salad kit sales and presents an opportunity for salad dressing brands to partner with manufacturers.

Challenges to the Industry

Dependence on consumer tastes Consumer tastes are unpredictable. Dietary trends and health fads come and go quickly and manufacturers often spend millions trying to capitalize on these trends.

Product safety concerns Public perception of the salad dressing industry can change dramatically when products are mishandled, mislabeled or contaminated. Companies often spend a lot of money trying to protect themselves by investing in legal services and customer service operations.

Infrequent buyingConsumers often only buy dressing only because a recipe calls for it and so it is not a weekly or even a monthly purchase for many consumers.

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Current Consumer:

The majority of Newman’s Own’s current consumers are males and females over the age of 40. These consumers generally think of Newman’s Own as a salad dressing brand and are not cross-purchasing other

brand products. A number of the brand’s current consumers are brand loyal because they have been directly impacted by the charitable giving of the company.

Consumer Analysis

Where in the grocery store are consumers finding salad dressing?

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How do current consumers use salad dressing?

70 percent of Newman’s Own’s current consumers use salad dressing in a tradi-tional way to top a salad compared with 52 percent of millennials. This fact speaks to the broadening consumer horizons regarding products and focusing on prod-uct development and marketing efforts to paint a picture of salad dressing as a multi-use product.

A Snapshot of the Millennial Consumer

Who are Millenials?

Newman’s Own would like to push sales among the younger generation. Millennials account for 25 percent of the population and are the most ethnically diverse generation in the United States. Millennials are less attached and more educated than other generations. According to a White House Report on Millennials, only 30 percent of 20-34 year olds were married in 2013, and 47 percent of this group had completed some form of higher education. It’s estimated that they will be spending $200 billion annually by 2017 and $10 trillion over their lifetimes as consumers in the U.S. alone.

Attitude toward food

This age group of people are self-declared foodies, a term used to describe someone who is passionate and enthusiastic about food. They value food that is fun, energizing, high quality, fresh, nutritious and affordable. Millennials have adventurous palates and brands that capture their interest in unique flavors will likely do well. Millennial consumers are interested in mixing and matching flavors, textures, and ingredients to customize their eating experience.

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Charitable Giving & Cause-Related Marketing

As a generation, Newman’s Own’s current consumers are only occasionally influenced by cause-related marketing; only 51 percent of Generation Xers and 33 percent of Baby Boomers are affected by such marketing. Although Millennials tend to have less expendable income than Baby Boomers, 62 percent of Millennials say they are frequently influenced by cause-related marketing. Millennials have a reputation for being more socially conscious than older generations. They are more likely to donate to charity when the action is done through purchasing a good because they are able to feel connected to a cause while still benefiting from the purchase. In fact, 42 percent of Millennials say buying “feel-good” products is very important, indicating a strong emotional expectation of purchases. These findings speak to the importance this generation places on attributes apart from price and quality when purchasing products. In keeping with their search for brand authenticity, Millennials will be most influenced by campaigns that seem authentic. 75 percent of Millennials believe that it is important to support companies that are charitable and they expect companies to give back to society in some way. In short, Millennials are looking for more than just a transaction: they want to associate with things that have a purpose.

Attitude toward brands

Millennials are trendsetters and tastemakers, and they are empowered, idealistic shoppers, beginning to establish long-term brand relationships. This demographic values transparency and authenticity, two core components in gaining their trust and brand loyalty. Multicultural consumer spending is having a tremendous impact on mainstream culture, according to Nielsen. They gravitate toward brands, products and activities that reinforce their multicultural roots and these behaviors are affecting the purchasing behavior of non-multicultural consumers, too.

Attitudes toward Food Manufacturers & Packaging

More than one third of Millennials do not trust large food manufacturers, so gaining their brand loyalty can be challenging. Along with this distrust is the belief of nearly two thirds of Millennials that some food companies try too hard to be genuine. So while connecting to this generation is important, brands must be authentic.

Packaging features are more important to Millennials than any other segment of the population. This may be related to perceived value of packaging that offers additional benefits. Packaging that offers added functionality may influence shoppers to feel like they’ve gotten their money’s worth.

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How do they grocery shop?

When asked what type of store tin which they prefer to shop, nearly 60 percent of Millennials cited traditional grocery stores and mass merchants. They like to shop by recipe and meal rather than a list and many of those who use lists admit to usually buying products that are not on their list. They also gravitate toward in-store promotions and are likely to make impulse purchases. Fact-finding is an everyday part of the purchase decision for Millennials. They use a variety of sources other than products labels when assessing nutrition and quality like friends, blogs and social media. According to the Edelman 8095 Study of Millennials, they are using four or more sources of information when deciding whether or not to purchase specific brands.

When do they go?

63 percent of millennials prefer to make frequent trips to the grocery store rather than one large trip, and one quarter of those in their mid-20s say that items they used to cook are purchased in the same day.

What do they buy?

Millennials are significantly more likely to indicate that single-serve packaging would influence them to purchase one product over another, especially those living in urban settings who may have more limited storage space.

Emotional components are expected in purchases, with 9 in 10 Millennials say that buying something that makes them feel good is at least somewhat important. According to a survey conducted by Elite Daily, more than double the millennials surveyed preferred quality over price when shopping, confirming the idea that millennials are closely observing product quality, by paying close attention to product characteristics.

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Cooking & Eating Habits

Aside from foods serving a function, 40 percent of Millennials say that the convenience of food is especially important to them. They exhibit a greater snacking frequency compared to older generations, and their on-the-go lifestyle demands a variety of foods in convenient formats. Their “snack throughout the day” mentality has supplanted any commitment to regular larger meals and so they demand foods that will tide them over and provide sustained energy. Millennials are 46 percent more likely than non-millennials to place importance on food that keeps them full and 37 percent more likely to place importance on food that keeps them energized.

Health Concerns

Despite studies showing that over a third of Millennials are considered obese, 60 percent of the 1000 Millennials surveyed by Y-Pulse and the Culinary Vision Panel appeared very nutritionally knowledgeable, citing the importance of monitoring caloric intake, protein, fat and sugar in their diets. In contrast to other generations, Millennials think of being healthy as a more complex idea than other generations. According to a Goldman Sachs report, 24 percent believe health is a combination of eating right and dedicating time to fitness versus 14 percent of Gen Xers and 12 percent of Boomers.

Millennials are more likely to be persuaded to choose one brand over another by all-natural and/or organic claims, and they see a value in buying these typically more expensive options. According to Mintel, 49 percent of Millennials say they would be most likely to buy a cooking sauce, marinade, dressing, or seasoning mix if it was all-natural. 37 percent said the term “organic” would persuade them to purchase as well; 33 percent said that the claim of no additives or preservatives would persuade them.

Millennials also appear more motivated by food safety concerns, with 29 percent indicating they purchase organic foods and beverages because the products have less risk of food safety issues. Many Millennial salad consumers, while recognizing the healthy, flavorful appeal of packaged salads, have reservations about the wholesomeness of certain salad kit ingredients, especially the dressings and toppings. There is a concern among this group as to how safe pre-cut and prepared salads are to eat.

According to Mintel, 54% of Millennials prefer

to cook at home.

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Media Consumption

Millennials are always connected to their technology devices and the wider digital world. A popular industry term for these constantly connected millennials is “digital natives,” who grew up with this technology and are unafraid of it. 87 percent of Millennials use between two and three technology devices.

To Millennials, traditional media is no longer getting the job done. While Millennials spend an average of 17 hours per week watching television on traditional and online mediums, less than 3 percent rely on advertising on television and in magazines for purchasing decisions. According to an Elite Daily report, more rely on the opinions of their family and friends when deciding whether or not to purchase a product. A third of those surveyed look at blogs to help them decide what to buy.

In terms of social media, 42 percent are most influenced by Facebook, followed by Instagram at 21 percent. And according to Ypulse, they’re all over Instagram, with 47 percent of 19-32 year-olds on the app. On average, Millennials share pictures of food on social media three times a week thanks to the “Instagram effect”: with new digital platforms, food is embraced as a vehicle for self-expression and storytelling. According to MediaPost, 44 percent of Millennials ages 21-24 have posted a photo of food or drinks they or someone else was having on social media, and 61 percent of the same group would rather have dinner at a new restaurant than buy a new pair of shoes. Further, because Millennials tend to pick up cooking ideas and tips from online and mobile media, brands can reach this group with strategies using these platforms, reports The Packer.

Even aside from posting pictures, Millennials are constantly “pinning” new recipes and racing to “check in” at a new restaurant as they turn the everyday act of eating into an event, part of the food story they are constantly creating and sharing.

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Neman’s Own’s target consumer is a male or female young millennial aged 18-29 who is interested in cooking and preparing ingredients, but doesn’t have a lot of time to do so. Happily unattached and climbing the ladder, this target wants to give back to their community in some way, but also doesn’t have the time to spare, or might not want to take too much time out of an already crowded week. They value convenience and ease, but aren’t lazy, and multi-use products will find a way into their grocery cart. And as for what else ends up in that shopping cart? It has to make them feel good; they want to like what they’re putting into their body, how it was made, and who it affects. Often these products have labels like “all-natural,” and “organic,” because this target is more swayed by those claims, and knows more than their predecessors about health and wellness. They first thing they’re likely to do when they begin cooking is take a picture to post on Instagram, or maybe they’ll record their adventures in the kitchen on Pinterest. This target consumer is very intrigued by other cultures, and uses cooking as a way to explore their foodie nature and enhance their adventurous palate.

Philanthropic Foodies

(Sal)Addressing Consumer Trends

Entice with Spice

Regardless of consumers’ ethnicity, demand for more exotic flavors is growing across the food industry. Consumers want bolder and spicier flavors in their sauces, spice mixes, and dressings. Market research has come to different conclusions about what’s behind the push for more exotic flavors: increasing affluence and a more ethnically diverse population have both been proposed.

Millennial consumers in particular are known to love hot and spicy foods and are more willing to be adventurous in their eating and cooking habits. This could be because Millennials represent the most ethnically diverse segment of the population and their desire for new and exciting flavors has paved the way for the reinvention of familiar foods. This interest has spurred product innovations and boosted demand for ethnic spices and sauces from salad dressing producers.

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Convenient Snack

Mintel research finds that healthy fruit and vegetables top the list of snacks eaten by millennial consumers. Additionally, a recent University of California study concludes that pairing vegetables with a moderate amount of fat helps the body absorb more nutrients. Marketing salad dressing as a finishing sauce or condiment presents an opportunity in the market, allowing dressing manufactures to target appetizers, sandwiches and other dishes apart from mere salads. Positioning salad dressing as suitable for dipping chips, topping popcorn, or pairing with fruit and vegetables could find success among Millennial snackers looking to enhance their small-bite experience. Small format, single-serving dressings, designed to pair with fresh snacks, would appeal to the target because it would meet their need for a convenient, portable snack and gives a little indulgence to the healthy eating occasion.

Engagement

Millennials want to be engaged on social media, whether it’s for a charitable cause, like the wildly successful ALS Ice Bucket Challenge, or for opportunities for expression of their inner foodie as they share their creations with their peers. According to Elite Daily, 62 percent of millennials are more likely to be brand loyal to a company that engages with them through social media. Opportunity exists to connect with consumers through efforts that go beyond products on store shelves, enabling them to be strong ambassadors for the brands they love. Customized or personal campaigns resonate with millennial consumers and can help build more meaningful relationships with brands. Additionally, Millennials value a seamless user experience across all digital platforms they encounter with a given brand. Not only do they want a consistent brand voice across all interactions, digital or otherwise, but they want brands to reach out to them to answer questions or spark conversation.

A Goldman Sachs report on Millennials suggests that 40 percent would like to co-create products with a brand, which has become a popular trend across the food industry. McDonald’s has been experimenting with a build-your-own-burger menu and it’s now bringing the “Create Your Taste” concept to some 2,000 locations. Pizza Hut launched a customizable pizza program and the new Taco Bell app gives consumers complete access to every Taco Bell ingredient to create what they want, when they want it.

How Newman’s Own is responding to the trends?

Newman’s Own does not have any ethnic flavors in its product line. Perhaps the closest salad dressing flavor they produce to something hot and spicy is the Zesty Italian. Dressings are sold in 8oz, 16oz or 24oz bottles. However, the company produces dressing pouches for its partnership with McDonald’s and perhaps should consider making these pouches available for individual sale. As millennials are generally considered adventurous in their eating habits and willing to try new flavors, the company could also consider selling the pouches in variety packs. Unfortunately, Newman’s Own does very little to engage with millennials on social media. Millennials are visually oriented and drawn to platforms like Instagram and Pinterest that allow them to visually depict their life and experiences. Newman’s Own is not active on either of these platforms.

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Competitor Analysis

Indirect Competitors

Go Greek!

Greek yogurt appeals to Millennial consumers because it satisfies three core needs: health, convenience and taste. It is high in protein and low in fat. Greek yogurt’s growth in the market has laid the foundation for interest in the healthy Greek lifestyle trend expanding across several supermarket product categories, including salad dressing. As millennials are driving the trend toward more frequent and healthier snacking, they are comfortable selecting desirable, healthier snack foods, such as greek yogurt. Greek yogurt is seen as something that is appropriate to eat at many times throughout the day. It can be equally positioned as a quick breakfast, an afternoon snack or a dessert.

Food experts assert that Greek yogurt provides a more nutritious base for homemade salad dressings and mayonnaise. Any ingredient that provides a creamy texture can often be replaced by more nutritious, higher-protein Greek yogurt. Greek yogurt is also making a mark on dips. For example, in 2013, yogurt brand Dannon extended its offerings into the dip segment with its Greek yogurt-based Oikos dips.

Numerous companies, including Kraft and Hidden Valley, have already developed salad dressing mixes that are mixed in with Greek yogurt and milk to create Greek yogurt dressing. Hidden Valley claims 75 percent fewer calories with its mix compared to its original ranch dressing. As for Newman’s Own, the brand launched Greek Nonfat Yogurt in 2014 to Boston test markets.

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The Rise of Fast Casual Dining

Fast casual restaurants do not offer full table service, but promise a higher quality of food with fewer frozen or processed ingredients than fast food restaurants. The segment has continued to grow rapidly, experiencing a 6.6 percent jump in same-store sales during the first quarter and industry leaders like Chipotle saw double digit sales increases this quarter.

Salads have recently joined the fast casual boom, joining the ranks of Chipotle and Pret a Manger. Fast casual restaurants appeal to younger generations, particularly Millennials, as they provide a quick, convenient meal option. Salad shops like SweetGreen and Chopped were earning more than $300 million in 2014, with some salad chains in the country experiencing double digit percentage growth in sales. But these fast casual options present a threat to store-bought salad dressing because as these salad shops expand, they contract their salad dressing production to private manufacturers. While a threat to traditional store-bought dressing sales, this could also be an opportunity for strategic partnerships for Newman’s Own.

Sweetgreen describes itself as a culinary lifestyle brand; a health fast food company that sells locally sourced salads, cold pressed juices and has a socially responsible image. It was founded in 2007 by three Millennials and it operates 29 stores on the East Coast and is expanding across the nation. The chain em bod ies a farm-to-table eth os, with loc al in gredi ents from nearby farms ap pear ing on menus along the East Coast. Sweetgreen does more than salad, too. They host a music festival, teach thousands of elementary school students about healthy food, and give employees green Converse sneakers after a year of service. It is in the process of expanding its mobile app, which to date, processes a quarter of all transactions.

Clearly catering to the adventurous palate of millennials, the menu features both the “Beets Don’t Kale My Vibe” and the “Rad Thai” salads, and its in-house, gluten free salad dressings include many exciting, exotic and bold flavors like spicy cashew dressing, lime cilantro jalapeno vinaigrette, carrot chili vinaigrette, miso sesame ginger vinaigrette, champagne vinaigrette and cucumber tahini yogurt.

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Salad Kits

Salad kits and packaged salads are on the rise as well. More than 70 percent of U.S. households consume bagged or packaged salads. These kits often include a dressing option, taking away from bottled dressing sales. Single-serve, ready-to-eat salad kit sales are up 26 percent from over a year ago. Sales of bagged salad and other ready-to-eat vegetables and fruits are estimated to rise from $5.5 billion in 2013 to $7 billion by 2018, However, research shows that 18-24 year olds and older consumers are less likely to buy packaged salads due to perceived lack of freshness.

Direct Competitors

Our comptetitors were chosen based on their sales numbers as of 2013 and their similarity to Newman’s Own in regards to charitable giving and cause-related marketing. They are ordered in decreasing market share as of 2013.

Hidden Valley represents the largest share of of the salad dressing category, comprising a 21 percent share in 2014. It is the “beloved original ranch brand,” and even uses trademarked phrase, “We made it first. We made it right.” HV has 18 flavors of Ranch: four light, one fat free, and one organic; 12 other flavors round out its product offering.

Keeping up with the trends

Hidden Valley has four spicy ranch dressings (Lite and Regular Fiesta Salsa Ranch, Spicy Ranch and Sriracha Ranch) Original Ranch and Original Lite Ranch in “on the go” packsHidden Valley produces salad kits which come with various flavors of salad dressing.Hidden Valley does not make any claims to organic or all-natural Ingredients.

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The Kraft Heinz Company is the third-largest food and beverage company in North America and the fifth-largest food and beverage company in the world, with eight $1 billion brands. In terms of dressing, “make something amazing,” is its slogan. Kraft has 7 categories of dressing: Ranch flavors, Italians and Vinaigrettes, Creamy Favorites, Light, Fat Free, and Artisan Flavors.

Keeping up with the trends

Kraft has a number of spicy flavors like Taco Bell Spicy Ranch, Taco Bell Southwest Ranch, Velveeta Cheesy Jalapeno Ranch, Peppercorn Ranch, Zesty Italian Vinaigrette, Mango Chipotle Dressing, Spicy Caesar, Sweet & Spicy Honey Mustard and Sweet & Spicy French Mustard. Kraft does not make any claims to all-natural or organic ingredients.

In early October 2013, Unilever sold its Wish-Bone salad dressing business to food company Pinnacle Foods Inc. Based in Kansas City, MO, the brand saw declines of 5 percent in sales over the period. Self-described as “America’s No. 1 Italian Salad Dressing,” Wish-Bone is a competitor for Newman’s Own in terms of Italian dressing. Wish-Bone’s most popular flavor is Italian, and tops its dressing flavor list at nine different Italian variations, with one light flavor and one fat free flavor. Vinaigrette makes up its second-biggest flavor category, similar to Newman’s Own (which has more vinaigrettes than creamy options), with six regular and three lite offerings.

Keeping up with trends

Wish-Bone has a Spicy Caesar, Sweet & Spicy Honey Mustard, and Sweet & Spicy French flavors. The company does not make any claims regarding all-natural or organic ingredients.

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“When Ken’s Steak House opened in 1941, no one expected the salad dressing to become the star,” is how a promotional video opens on the Ken’s website. With humble beginnings quite similar to Paul Newman’s basement operation, Ken’s, founded by Frank and Louise Crowley, grew from a curiosity about the great salad dressing from two restaurant patrons into a full-scale business. Now, Ken’s has three dressing product lines: Ken’s , Chef ’s Reserve, and Ken’s Light Options. Ken’s has 24 flavors in additions to 2 fat free options and 22 “lite” options. Its Chef ’s Reserve line includes 10 self-described “fancier” flavors like Italian with Garlic & Asiago Cheese. Finally, Ken’s Light Options, separate from Ken’s “lite” options, offers 10 flavors with less calories and more omega-3 fatty acids.

Keeping up with trends: Ken’s has no spicy flavors but does carry Zesty Italian, Southwestern Ranch and Peppercorn Ranch. Ken’s offers no organic products.

Annie’s Homegrown, owned by General Mills, is the most similar salad dressing competitor to Newman’s Own regarding a charitable company mission; from its website: “Our mission is to cultivate a healthier and happier world by spreading goodness through nourishing foods, honest words and conduct that is considerate and forever kind to the planet.” In terms of giving back to the community, Annie’s Homegrown “Grants for Gardens” program has helped build and has funded school garden programs across the U.S. since 2008, and its Sustainable Agriculture Program has provided student scholarships to support the next generation of sustainable farmers. Annie’s Homegrown also participates in community volunteer programs and donates to programs that connect people to homegrown food. Annie’s Homegrown’s most popular flavor is the “Goddess” flavor, which contains creamy tahini dressing, along with 17 organic dressings, eight regular, six light, and one fat free flavor.

Keeping up with trends: In keeping with market trends of spicy and exotic, Annie’s offers a Chili Lime Lite dressing flavor.Annie’s Homegrown also makes ingredient promises of zero artificial flavors, synthetic colors, synthetic preservatives, GMOs, growth hormones, or persistent pesticides. They only provide all-natural ingredients, a claim similar to one Newman’s Own makes but doesn’t advertise as frequently. Additionally, Annie’s has a “natural,” “certified organic,” and “non-GMO project verified,” line of dressings.

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As 83.2% of Millennials are Facebook users, here is an overview of the competitors’ Facebook usage and interaction.

Hidden Valley posts on Facebook periodically and most of its postings are recipe ideas. However, the company does have a couple of posts that showcase user’s recipes and creations. Recently it launched a “ranch-tastic” competition asking users to share their most “ranch-tastic” creations on the page by video or photo to be in with a chance of having their creations showcased on Hidden Valley’s website or social channels. The competition has received little response with only 9 likes and 2 comments. Visitors to the Facebook page post frequently. The comments include complaints about flavor and packaging, recipe reviews, queries about sponsorship and questions regarding the ingredients used. Hidden Valley responds periodically with a standardized response.

Wish-Bone is very active on facebook and posts recipes, videos, pictures and articles to its page. The page receives a lot of visitor traffic, lots of “likes” shares and comments and Wish-Bone responds to visitors’ queries, complaints and questions diligently in a very personal way.

Kraft has not been active on facebook since March and before then only posted sporadically and never responded to visitors’ posts.

Ken’s posts on Facebook almost daily. “Ken’s Pro-Tip” is a popular series of posts whereby the company provides useful tips about food preparation and cooking. Ken’s also posts recipes frequently and many of these have a high number of “likes” and “shares.” Recently Ken’s has started asking Trivia questions and the most recent of these has received 66 likes and 29 comments to date. The company responds to customers’ queries, praise and complaints in a personal manner, offering helpful advice and effective redress.

Although Annie’s facebook page is not specifically for dressing, the company posts a selection of videos, photographs, recipes and articles almost every day. The majority of its posts have received over 5000 likes and hundreds of shares. Annie’s diligently responds to the majority of visitors’ comments and posts with advice, gratitude, helpful tips and more. The company also rewards visitors to the page with promotional offers such as coupons.

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To “Philanthropic Foodies” who crave dynamic flavors and have a hunger to give back, Newman’s Own salad dressing delivers wholesome ingredients while nourishing the soul through selfless giving.

Rationale

Newman’s Own is valuable because of the value it gives to others. The value of its all-natural food and the selflessness of its charitable giving make it a company unlike any in the industry. Bringing people together through wholesome, delicious food and the spirit of giving back to those less fortunate are tenets woven through the very fabric of this company. Consumers like the legacy of Paul Newman, movie-star-turned-racecar-driver-turned-philanthropist; they like the taste of the products, and they like the way Newman’s Own takes an interest in its community, their community. The value inherent to Newman’s Own is how it makes others feel valued, through food and through giving.

Positioning

Currently Newman’s Own is not positioned strongly in the market. Market share is low, and the majority of Newman’s Own is bought by those 40 years old or older, and many young people do not have awareness of Paul Newman. Millennials might not have any idea that he was a dashing movie star, a reckless racecar driver, or a selfless philanthropist who took charity extremely seriously. In terms of product, the company isn’t very exciting or groundbreaking, and isn’t on the cusp of current trends. The company’s use of social media is minimal to none, advertising is misused, and its engagement with customers is lackluster, but aside from this, Newman’s Own has all of the ingredients for a successful pivot to Millennials.

Personality and Brand Essence

Built on the legacy of Paul Newman, Newman’s Own was established on bringing people together with wholesome food and charitable giving. The company is an authentic brand that has grown with its compassionate customers’ appetites. Customers have faith in the brand based on the impact the brand has made in their own lives and the lives of their beneficiaries. Newman’s Own has branded itself as a company that can make a difference, both in your dinner and your life.

Brand Equity and Positioning

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Communication Strategy

Messaging that emphasizes condiments’ role as an easy way to personalize dishes to suit the tastes of various people in the household should resonate with the largest percentage of category participants. Similarly positioning products as a helping hand to assist less-skilled home cooks to achieve the end results they desire should find strong appeal among this group. In contrast, developing more complex products that push experienced cooks beyond the edge may appeal to those looking to expand their repertoire in the home kitchen.

Competitor Positioning:

Newman’s Own does not have any spicy or bold flavors or convenient packaging, but does, compared to competitors, use simple wholesome ingredients and has the extreme selfless giving that other competitors lack.

Companies that were considered to be direct competitors with Newman’s Own were evaluated on size, charitable giving, and product innovation with regards to flavor and convenient packaging. Newman’s Own, in contrast to its competitors, makes up for a lack of product innovation by remaining true to Paul Newman’s charitable vision, as evidenced in the perceptual map. Operating in the same small town in Connecticut in which it was founded, with just 18 employees, Newman’s Own still manages to leverage itself on a national stage.

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SWOT Analysis

Strengths

Charity Newman’s Own differentiates itself through its charitable component. The company has continued Newman’s legacy by donating 100 percent of after-tax profits to charity. The company can ensure that the legacy will continue through the establishment of the Newman’s Own Foundation.

Authentic Story Newman’s Own Salad Dressing was created in a basement in Connecticut and grew into a small boutique operation when the company started in 1982. Since the founding of the company, Newman’s Own has stayed true to its home-grown roots. Newman’s Own, Inc. carries on the legacy of Paul Newman not just through wholesome and tasty food, but also through philanthropy to the highest degree. Newman’s Own has also remained true to its roots by maintaining the small business component with 18 employees.

Simple Ingredients Paul Newman would never put anything in his line of products he wouldn’t eat himself. He was a simple man with simple tastes. Newman’s Own has continued his legacy by providing wholesome products with simple, readable ingredient lists.

Fast Casual Dining

Product Innovation from Comepetitors

Greek Yogurt and Homemade Dressing

Infrequent Buying

In-House Dressing Partnership

Empower Millennials

Engage on visual platforms

Promote All-Natural/Organic

Advertising

Social Media Engagement

Communication of its Mission

Charity

Authentic Story

Simple Ingredients

Strengths Weaknesses

OpportunitiesThreats

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Opportunities

In-House Dressing Partnership With the rise of fast-casual salad shops that offer consumers personalization, convenience, variety and ease, Newman’s Own could consider partnering with one of these powerhouses, like Sweetgreen, just as it has partnered with McDonald’s and Costco Wholesale. Sweetgreen has a distinctive edge in the millennial market, and the exposure available by being the exclusive dressing of such an on-trend brand would be valuable to the Newman’s Own brand.

Empower Millennials via Charity and Social Movements Our research has shown that millennials are more than willing, and even expect, brands to give back to their communities. Additionally, when powered by the reach of social media, brands can connect and engage with millennials like never before.

Engage on Visual Platforms Millennials are not just on social media, but on visually-oriented social media, which provides Newman’s Own with an opportunity to exploit the gorgeous photos they have of their products online to entice Millennials. It’s not enough for Newman’s Own to step up their social media presence on traditional platforms like Facebook and Twitter; they need to command Instagram and Pinterest, too.

Promote All-Natural and Organic Qualities One phenomenal attribute of Newman’s Own that resonates with Millennials is the all-natural ingredients. Research has shown that millennials are drawn to all-natural and organic claims, and want to feel good about what they put into their bodies. By further promoting and emphasizing the brand’s attributes associated with healthy eating, Newman’s Own could achieve the top-of-mind-awareness it seeks with Millennials.

Weaknesses

Advertising Newman’s Own has previously relied heavily on sales without the support of mass advertising. The company does not emphasize advertising, only featuring ads in select magazines periodically over the years. While the company is non-profit, meaning it wants to conserve as much funding as possible, it would greatly benefit from advertising. Newman’s Own’s greatest competitors currently feature mass media campaigns, and it is greatly paying off for them.

Social Media Engagement Newman’s Own does very little to engage with its consumers on social media. The only platform it attempts to engage on, Facebook, only has 65,000 followers which pales in comparison to its competitors. Philanthropic Foodies spend a lot of time on visual platforms like Instagram and Pinterest. Newman’s Own has neither of these platforms which is a major disadvantage for the company and minimizes the chances of any social media engagement between Newman’s Own and its consumers.

Communication of their mission Paul Newman is unknown doesn’t appeal to younger generations. It has been seven years since the death of Newman’s Own founder Paul Newman. The new target market for Newman’s Own is less acquainted with Paul, creating a disconnect between the band and the consumer. When younger consumers purchase Newman’s Own they are often unaware of Paul and the relevance he had as both an actor and philanthropist.

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Threats

Fast-casual dining Fast casual restaurants are gaining appeal and approval with the target as they offer a quick, convenient, healthy meal option. However they present a threat to Newman’s Own because as these salad shops expand, they contract their salad dressing production to private manufacturers or make them in-house.

Product innovation from competitors Newman’s Own’s competitors are catering to target consumer trends by adding hot and spicy salad dressing flavors to their product line. Some competitors also sell salad dressing in single-serve formats and position their dressings as more than just salad toppings. They portray salad dressing as something that is versatile and the small portable packaging appeals to the target because it satisfies their need for a convenient snack.

Greek Yogurt & Homemade Dressings Greek yogurt satisfies three core target needs; health, convenience and taste. It is popular with the target because it seen as a versatile product, rich in protein hailed not only as a substitute for salad dressing and dips but also as a nutritious base for homemade salad dressings. It is also considered a snack that is equally appropriate to eat at any time throughout the day.

Infrequent buying Salad dressing is not a weekly or even monthly purchase for many target consumers. Consumers often only purchase it because a recipe calls for it. The idea that salad dressing serves only one purpose contributes to infrequent purchasing behavior.

Conclusion

As the Situation Analysis team for Newman’s Own, we have presented valuable information for the Seasoning & Dressing Manufacturing Industry, the Salad Dressing Industry and Newman’s Own as a brand. We have provided an in-depth analysis of the available information on the recommended target salad dressing consumer and have determined a segment of the market that offers great potential for Newman’s Own. The following are our recommendations for further strategy for Newman’s Own and areas that offer potential for future research that teams two and three can utilize for our final proposal for Newman’s Own.

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Recipe for Success

Position salad dressing as more than just salad dressing

Many consumers perceive salad dressing as a one-purpose condiment. Newman’s Own should consider positioning salad dressing as more than just a dressing and instead advertise it suitable for dipping chips, topping popcorn, or pairing with fruit and vegetables. Small format, single-serving dressings, designed to pair with snacks, would appeal to the target because it would meet their need for a convenient, portable snack and gives a little indulgence to the healthy eating occasion.

Engage with consumers

Newman’s Own does very little to engage with Millennials on social media. There is very little interaction with consumers on its Facebook page and in comparison to its competitors, the company has a very low number of followers. We recommend that Newman’s Own expand its following and interact with consumers more by responding to their comments, posting interesting articles, videos and pictures. The company should strive to maintain a two-way conversation with its users by encouraging them to reach out and post on the Newman’s Own page and to share the content that Newman’s Own posts. Millennials are visually oriented and drawn to platforms like Instagram and Pinterest that allow them to visually depict their lives and experiences. Newman’s Own is not active on either of these platforms and should consider expanding its online persona to include either or both of these platforms. ·

Continue to emphasize the charitable component

Although Newman’s Own gives 100 percent of its profits to charity, the company needs to boldly highlight their successful charitable component in their marketing. Our research found concrete evidence that millennials like to participate in charitable giving and even expect the companies they love to do the same. Newman’s Own’s “All profits to charity” tagline exemplifies just that, and the company needs to further impress the tagline into the minds of Millennials. The brand has the mission and the vision to empower Millennials when they do the simple task of purchasing salad dressing. Newman’s Own needs to position themselves as a helping hand for Millennials - a vehicle they can use to live out their desire to give back.

If Newman’s Own can effectively target and reach Philanthropic Foodies, the consumer will respond with brand loyalty and appreciation of the company’s mission.

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