Lucky # Slevin Abby Schaller Dan Smith Jared Simon Jennifer Sherman

 Kellogg Co. is hoping to steer consumers in the direction of products that are easier to produce at a cheaper production cost. ◦ -Corn Flakes ◦ -Rice Krispies Campbell Soup Co. is going to start a multimedia campaign to magnify its condensed soups at a bargain price. Kraft’s food is also stepping up its advertising for Kool-Aid and is marketing its products through commercials on the radio for the first time in 11 years.

 Kraft and Campbells’ goal is to show ways to make families get the best use of their dollar.  Another goal is to promote soup and grilled cheese sandwiches.  Coupons for Campbell’s soups and sandwiches made with Kraft Singles cheese will be available in newspapers nationwide.  “Wallet-friendly meal your family will love!”

 For many years, food makers have tried to increase profit margins.  Lower priced-high margin products are now being emphasized over high priced, “Premium” products.  The Milk Industry is launching advertisements emphasizing milks bargain value.  “A glass of milk only costs about a quarter…” is a new ad for the Got Milk campaigns

 This company has not advertised their Banquet-Style frozen dinners in more than a decade.  They are going to raise their price.41 in order to make a higher profit margin.  The dinners are raised to $1.50 from $1.09.  Healthy Choice dinners are double the price of ConAgra meals.  “So good for so little”

 Gas prices and heating bills are the cause of less trips to the supermarket.  Food companies have been purchasing cheaper ingredients and shrinking packages to increase their profit (giving us less for same price).  Price for food has risen 7.5% at a seasonally adjusted rate.  Consumers have taken the route of buying private label products for less.

 Some people don’t care about the price, they will still buy high quality food for a high price.  Companies such as Sara Lee and H.J. Heinz will continue to sell their products at the same price because their brands have always stood for good value.

 Campbell Soup will air TV, radio, and Internet ads to show its condensed soups as “cheap eats”  Last year, they emphasized the soups’ quality over quantity.  Their ad will show a lineup of five condensed soups, saying it is the “original dollar menu.”  This year they are selling higher quantities at one time at a more affordable cost (10 cans for $10)

 Kellogg is now working on search engine optimization, so when customers search words such as “cereal” and “deals”, or “value” Kellogg appears first.  On the Campbell website, they are now offering recipes for meals that cost under $10 using their products.

 In one Kraft commercial, they have showed how one bag of Kraft products can be spread into making five meals.  A TV commercial advertising Kool-Aid tells consumers that 4 pitchers of Kool-Aid costs the same as 2 liters of soda.

 Companies are going to make higher profits  People will get more quantity for their money  With the economy in a recession, it is more likely that consumers will spend money on high quantity products.

 With the use of lower quality ingredients, it may reduce the health of consumers.  Lower quality could lead to customer dissatisfaction.  Consumers concerned with nutrition may be turned off by the advertisements and be forced to buy different products.

 Large food corporations are pushing their consumers in the direction of low cost foods.  Quantity is now the direction advertisers are taking over quality and nutrition.  Companies whose products have been based on quality in the past, such as Banquet-Style meals, are now advertising on TV to get ahead of the competition.