Penny Bloom Cynthia R. Griffis-Perkins Ashley Metzel Mike Plucinski Jordan Sheckman James Smith A PRESENTATION BY
Strengths S.W.O.T. ANALYSIS Annies 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 Mens Health Magazine (June 2005) New Annies Bunny Grahams will appeal to children New gluten-free products
Weaknesses S.W.O.T. ANALYSIS 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
Opportunities S.W.O.T. ANALYSIS Second-largest macaroni and cheese brand Has an ongoing relationship with PBSs 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
Threats S.W.O.T. ANALYSIS Companies like Hain-Celestial offer health food categories Annies 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 dont 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
Brand Challenge Annies 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 Annies products. Annies is trying to develop brand equity and decide toward which group to focus its marketing efforts.
Alternative A Intro. Of Alternative Strategies Target one of Annies 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
Alternative B Intro. Of Alternative Strategies 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
IMC Objectives Alternative A 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
Alternative A Target Market Profile 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
Alternative B Target Market Profile 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
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. Annies offers quick, easy and healthy meals that family members love at an affordable price. Eating Annies 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. Annies 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 students budget. The brand character is trendy and geared toward todays young generation.
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 Annies 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.
The Big Idea Creative Suggestions Healthy in a Hurry This will be the new slogan for Annies Homegrown. This concept encapsulates the ideas we are trying to get across that Annies 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.
IMC Tools Creative Suggestions Revamp the company Web site to a design more adult friendly. The new site would include recipes for family meals and options to buy Annies products online to save time for the busy working mother. Relocate Annies 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 Annies as a healthy alternative to regular pasta meals, and it will perhaps encourage those that buy the competitors brand to switch to Annies. Institute point-of-purchase displays that emphasize the Healthy in a Hurry idea.
IMC Tools Creative Suggestions Run a television commercial campaign geared toward busy mothers that explains Annies mission statement and commitment to all-natural ingredients. The commercials will ultimately show that feeding your kids Annies 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 Annies 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.