1. Cynthia R. Griffis-Perkins
Annie's Homegrown
A PRESENTATION BY
Penny Bloom
Cynthia R. Griffis-Perkins
Ashley Metzel
Mike Plucinski
Jordan Sheckman
James Smith

2. S.W.O.T. ANALYSIS Strengths
Annie’s has a wide variety of pasta products
25% revenue increase in the past year and continues to see expansion in its retail distribution
Has emerged into an $11 million brand
Has initiated several community programs
Can be found in most major grocery and natural food stores
Rated “Best Mac & Cheese” by Men’s Health Magazine (June 2005)
New Annie’s Bunny Grahams will appeal to children
New gluten-free products

3. S.W.O.T. ANALYSIS Weaknesses
Specializes in only pasta and cracker products
Organic foods tend to be more expensive to the consumer
Many consider the artificial flavoring present in most food to be better tasting

4. S.W.O.T. ANALYSIS Opportunities
Second-largest macaroni and cheese brand
Has an ongoing relationship with PBS’s Arthur, on which they can expand
The organic food market is continuing to grow very rapidly
The chemicals present in processed foods is hardly a secret
Natural foods are being offered through many new outlets
The variety of natural foods available for consumption is expanding
The demand for natural foods is on the rise than organic

5. S.W.O.T. ANALYSIS
Threats
Companies like Hain-Celestial offer health food categories Annie’s does not
Kraft is still the number one selling macaroni and cheese brand in the United States
As the number of different organic food products multiplies, there is the risk of consumers feeling overwhelmed and confused about which products they choose
Though sales of natural foods don’t show signs of slowing down any time soon, there is always the risk that the trend could be a “fad,” and it may burst at any time without warning

6. Brand Challenge
Annie’s Homegrown currently has a consumer base consisting predominantly of families and college students. Both groups presently have interest in eating healthy and pursuing organic food options, but they do not specifically know the benefits of Annie’s products. Annie’s is trying to develop brand equity and decide toward which group to focus its marketing efforts.

7. Intro. Of Alternative Strategies
Alternative A
Target one of Annie’s largest consumer groups: working mothers
Pros
Increase sales
Build brand equity
Establish brand image to appeal to target market
Cons
Limiting target demographics
Increased costs for extensive advertising output

8. Intro. Of Alternative Strategies
Alternative B
Target the other largest consumer groups: college students
Pros
Opportunity for serious growth in an as of now untapped market
A group targeted to young adults may influence younger kids to choose the “cooler” brand
Cons
A revamping of brand image may alienate the previously targeted consumer group
An intense fluctuation of consumer loyalty; no telling how many may fall through the cracks

9. IMC Objectives Alternative A Alternative B
Increase repurchase rate by 60% before December 2006
Increase reach of ads by 35%
Generate more family-friendly image among 70% of current clientele
Alternative B
Increase awareness of college student by 60% before the end of Spring 2006 (Spring semester)
Reestablish positive attitude with 60% of previously targeted groups

10. Target Market Profile Alternative A Geographics
West Coast and the Northeast
Demographics
Mothers
Some college education
White
Age 23-42
Has children ages 2-14
Employed part-time or full-time
Combined annual income of at least $50,000
Psychographics
Reads the daily newspaper
Reads family magazines and/or health magazines
Computer/Internet literate
Health-conscious
Has strong family values
Willing to try new things
Cares for the environment
Is an impulsive buyer

11. Target Market Profile Alternative B Geographics Major college towns
Demographics
Male or female
Attends a college or university
White
Age 18-25
Spends at least $50 on groceries per week
Psychographics
Health-conscious
Values image
Cooks meals regularly
Reads magazines
Cares for the environment
Computer/Internet literate
Looking for new things

12. Brand Positioning Statement
Alternative A
To mothers that have children, ages 2 to 14, who worry about the diets of their family members but do not have enough time to make all-natural meals from scratch. Annie’s offers quick, easy and healthy meals that family members love at an affordable price. Eating Annie’s foods promotes a healthy lifestyle. The brand character is fun, beneficial and family oriented.
Alternative B
To college students, ages 18 to 25, who are interested in leading healthy and productive lifestyles with foods that are easy to fix and environment-friendly at an affordable price. Annie’s is the brand of macaroni and cheese that allows students to have a healthy diet with all-natural, environment-friendly foods that can be easily afforded on a student’s budget. The brand character is trendy and geared toward today’s young generation.

13. Selection of Best Strategy
ADrenaline has determined that Alternative A is the best strategy. We have concluded that targeting the working mother demographic would potentially generate the greatest increase in sales. This group has proven to be a successful target in the past, yet Annie’s has to date not extensively pursued it in media outside of simple magazine advertisements. With a refurbished ad campaign and newly shaped corporate image, this demographic stands to increase dramatically.

14. Creative Suggestions The Big Idea “Healthy in a Hurry”
This will be the new slogan for Annie’s Homegrown. This concept encapsulates the ideas we are trying to get across that Annie’s products are healthy, and also perfect for the working mother who does not have time to cook a meal from scratch.
An updated logo that appears both professional and appealing to children.

15. Creative Suggestions IMC Tools
Revamp the company Web site to a design more adult friendly. The new site would include recipes for family meals and options to buy Annie’s products online to save time for the busy working mother.
Relocate Annie’s meals that would appeal to families to the same shelf at the supermarket as regular pasta products, but also keep the other products in the organic food aisle. This will position Annie’s as a healthy alternative to regular pasta meals, and it will perhaps encourage those that buy the competitor’s brand to switch to Annie’s.
Institute point-of-purchase displays that emphasize the “Healthy in a Hurry” idea.

16. Creative Suggestions IMC Tools
Run a television commercial campaign geared toward busy mothers that explains Annie’s mission statement and commitment to all-natural ingredients. The commercials will ultimately show that feeding your kids Annie’s will encourage healthy eating habits in the future and foster in them a caring attitude toward the environment, an idea shadowed by the concept that Annie’s is quick and easy.
Run a magazine advertising campaign in popular magazines that mothers read including Parenting, Family Circle, Home & Garden and Redbook. This campaign with run in conjunction with the television ads and also emphasize “Healthy in a Hurry.”

17. The End