Creating Effective Marketing Plans Georgetown CCPE Marketing Program

Creating Effective Marketing Plans Georgetown CCPE Marketing Program Fall 2009 CCPE MP Fall 09 C 1

CCPE MP Fall 09 C 2

Kingsford SWOT S W Strong brand Superior actual and perceived performance Reducing price premium disadvantage Dominant and increasing share Strong promotional and in-store activity Clorox resources Low advertising spend O T Royal Oak wasting away Extend season Much reduced total outdoor grilling category growth Charcoal sub-category losing out to gas CCPE MP Fall 09 C 3

Key Issues n n Not growing as fast as Clorox needs Strong brand with distinct competitive benefit Market trends unfavorable Competition within sub-category has reduced CCPE MP Fall 09 C 4

Outdoor Grilling Market Map Quality Kingsford Instant Functionality Convenience No hassle Royal Oak Charcoal Territory Gas Territory Experience Emotion Food/Taste Fun/Family Confidence CCPE MP Fall 09 C Kingsford Regular Private Label 5 Economy Ritual

Objectives n Strategic intent ¡ To be the authentic All-American BBQ experience ¡ ¡ ¡ What – the best charcoal for taste Where – outside, home, events When - family, friends, holidays, sports Who – grilling enthusiasts, male, h-o-hs Why – togetherness, taste, ritual CCPE MP Fall 09 C 6

Draft brand positioning n Insight ¡ n Only charcoal enables the full, authentic, best bbq experience Market ¡ n n ¡ ¡ n Outdoor grilling n Enthusiastic outdoor grillers Male heads of family households CCPE MP Fall 09 C Best quality, brand leader Values/Personality ¡ n Best taste, full experience Reasons why ¡ Target ¡ Benefits American, family, traditional bbq rituals DISCRIMINATOR ¡ Only Kingsford delivers the complete and best 7 bbq experience

Program for the Day n Assignments n Part 3 - ‘Defining the Strategy’ CCPE MP Fall 09 C 8

Planning n n n Deciding where we’re going Determining how we’ll get there Agreeing the specific actions we need to take CCPE MP Fall 09 C 9

Marketing Planning n Objective setting ¡ n Strategy definition ¡ n What do we want to achieve? How do we intend to achieve it? Action planning ¡ How will we make it happen? CCPE MP Fall 09 C 10

The Marketing Planning Process Situation Analysis Customers, Company, Competitors, Collaborators, Context (5 C’s) S Objective Setting T Target Market Selection Market Segmentation P Positioning Strategy Definition Marketing Mix (4 P’s) Product/Service Pricing Place/Channels CCPE MP Fall 09 C Promotion 11

Marketing Strategy n n What will be our value proposition? How will we charge for it? How will it be available? How will we communicate it? CCPE MP Fall 09 C 12

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Insight n ‘Seeing below the surface’ n ‘Understanding hidden truths’ CCPE MP Fall 09 C 14

‘A fresh, discerning, penetrating fact that inspires ideas and action’ CCPE MP Fall 09 C 15

n………but ALWAYS obvious in hindsight! CCPE MP Fall 09 C 16

n Dove – soap leaves skin feeling dry and tight CCPE MP Fall 09 C 17

n Breyers Ice Cream – people believe natural unadulterated ingredients taste better CCPE MP Fall 09 C 18

Watches can be a fashion item as well as a means of telling the time CCPE MP Fall 09 C 19

Heinz Ketchup n Consumers think that if a ketchup is thick, it has lots of tomatoes in it. CCPE MP Fall 09 C 20

Sources of Insight n The numbers CCPE MP Fall 09 C 21

Beer taste perception unbranded Pabst Bud Miller Lite Guinness Colt 45 Coors CCPE MP Fall 09 C 22

Beer taste perception branded Colt 45 Pabst Coors Guinness Miller Lite Bud CCPE MP Fall 09 C 23

Sources of Insight n n The numbers Trends CCPE MP Fall 09 C 24

Mega Global Trends n Informality ¡ n Intensity ¡ n Health & Vitality, Mind-body-spirit, Social responsibility Global Interdependence ¡ n Physical stimulation, Cynicism requiring escapism Wellbeing Quest ¡ n Blurring of boundaries World citizen, interconnectedness Simplification ¡ Overinformation, vulnerability, simple choices CCPE MP Fall 09 C 25

Mega Global Trends (2) n Nostalgia ¡ n Premium Reward Culture ¡ n Rejection of formulaic, own destiny, individual as nucleus, reinvention and rejuvenation Affinity Communities ¡ n ‘I deserve’, compensatory behavior, mainstream premium Individuality ¡ n Romanticizing the past, familiarity and security, authenticity and realness Multi-identification, virtual working and living, lifestyle clusters Technology Commodity ¡ CCPE MP Fall 09 C Everyday integration, gaming, on-line communities 26

Sources of Insight n n n The numbers Trends Immersion or ethnographic research CCPE MP Fall 09 C 27

Ethnography n Immersion or ethnographic research ¡ Work ¡ Play ¡ Events ¡ Relationships ¡ Passions CCPE MP Fall 09 C 28

Sources of Insight n n The numbers Trends Immersion or ethnographic research Experts and opinion leaders CCPE MP Fall 09 C 29

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Sources of Insight – where to find it n n n The numbers Trends Immersion or ethnographic research Experts and opinion leaders Consumer/Customer Generators CCPE MP Fall 09 C 31

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Insightful Marketing Managers… n n Read a different newspaper every day Listen to their target audience’s favorite station Build priority time to get out of the office Check out new things while out visiting n n Read the same newspaper every day Listen to their own favorite radio station in the morning Spend most of the day in meetings Always get people to come to them CCPE MP Fall 09 C 33

n n n Read research reports avidly and attend debriefs religiously Meet consumers face to face regularly Watch consumers’ behavior intently while out doing their own shopping n Skim the executive summary and occasionally show up to meetings n Bury themselves in their own lifestyle n Never shop themselves CCPE MP Fall 09 C 34

n n n Routinely use their own and competitor products Get their agencies to provide them with currents ads from all media Live a life outside the office n Rarely use their own products n Rarely watch commercial TV n Take their work home with them CCPE MP Fall 09 C 35

Consumer understanding does not come from buying a research report. The report will give you information, but it won't give you understanding. In the same way as if someone had your CV and a photo of you, they would know quite a lot about you - but they wouldn't know you as a person. * To get a feel for what is really important to consumers means talking to them, not just reading about them. • It means giving time to - and spending money on understanding the entire consumer experience into which the purchase of our brand fits. • And it means making sure that the working environment, CCPE MP Fall 09 C 36 indeed the whole work-culture, revolves around the consumer.

. Successful marketeers not only understand their consumers, they also respect and empathise with them - however big a gap may lie between their consumers' attitudes and lifestyles and their own. And they seek to understand not only their current mass consumers, but also those at the leading edge of their target group, in order to anticipate future trends (and perhaps even influence them). CCPE MP Fall 09 C 37

n n Having better insights faster than your competitor is fundamental to moving any business forward Insights can come from anywhere, but they usually need a provocation CCPE MP Fall 09 C 38

Marketing Strategy CCPE MP Fall 09 C 39

Winning Strategic Ideas n. Doing it better n. Doing it different CCPE MP Fall 09 C 40

Winning Strategic Ideas n. Doing it better CCPE MP Fall 09 C 41

Winning Strategic Ideas n. Doing ¡Move it different on the price curve CCPE MP Fall 09 C 42

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Winning Strategic Ideas n. Doing it different ¡Re-segment CCPE MP Fall 09 C 44

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Winning Strategic Ideas n. Doing it different ¡Change the rules CCPE MP Fall 09 C 46

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Winning Strategic Ideas n. Doing it different ¡Focus CCPE MP Fall 09 C 48

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Competitive Strategies n Market Leader Strategies ¡ Expand Total Market ¡ Defend Market Share n Market Challenger Strategies n Niche Strategies

Marketing Strategy n The principles and thrusts we will use to achieve our marketing objectives CCPE MP Fall 09 C 51

Marketing Strategy n n What will be our value proposition? How will we charge for it? How will it be available? How will we communicate it? CCPE MP Fall 09 C 52

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Marketing Strategy n Product ¡ n Price ¡ n What and how will we charge for it? Place ¡ n What will be our value proposition? Where, when and how will it be available? Promotion ¡ How will we communicate and incentivize its purchase? CCPE MP Fall 09 C 54

Marketing Strategy n Product ¡ What will be our value proposition? CCPE MP Fall 09 C 55

Product n. Service CCPE MP Fall 09 C 56

Product CCPE MP Fall 09 C 57

n n Selection experience Buying experience Usage experience After-sales experience CCPE MP Fall 09 C 58

n n n Vacations, hotels Services Retail Durable goods Consumer goods CCPE MP Fall 09 C 59

n n n n Performance Features Reliability Durability Serviceability Style and Design Emotional Associations Cost CCPE MP Fall 09 C 60

Marketing Strategy n Price – in principle ¡ What will we charge for it? ¡ How will we structure our pricing? CCPE MP Fall 09 C 61

Marketing Strategy n Place – in principle ¡ Where, when and how will it be available? CCPE MP Fall 09 C 62

Marketing Strategy n Promotion – in principle ¡ How will we communicate our value proposition ¡ ¡ How will we incentivize the transaction? CCPE MP Fall 09 C 63

Principles of Marketing Communication CCPE MP Fall 09 C 64

Principles of Marketing Communication n Message Strategy ¡ n Media Strategy ¡ n What is to be communicated and to Whom Where and When – is it to be communicated Creative Strategy ¡ How – is the message to be expressed CCPE MP Fall 09 C 65

Message Strategy – What? n n n Launch new product or service? Build penetration? Build purchase frequency? Build volume consumption? Beat off competitors? Expand the market? CCPE MP Fall 09 C 66

Message Strategy -To Whom? CCPE MP Fall 09 C 67

Message Strategy n What are your Priorities! CCPE MP Fall 09 C 68

Less is more! n ‘The language of strategy is priorities’ CCPE MP Fall 09 C 69

What’s the idea? CCPE MP Fall 09 C 70

Pepsi UK Snackfoods Strategy n n n Focus on Walkers and make it a mega-brand by owning the category benefit – irresistible taste Invest in Walkers potato chip quality to achieve a noticeable difference, support a premium price, and reinvest the margin in advertising support Cut the portfolio to create focus and take out complexity cost Create category news – specifically launch Doritos and build a new mainstream corn chips segment targeted at teens Build a stronger sales force and win the in-store war Upgrade the marketing team CCPE MP Fall 09 C 71

Study Assignment for w/c 10/19 n n n Build on the positioning objective you have defined to develop a summary marketing strategy. In so doing, be mindful of the concepts we have discussed today. Do this within one page: note the Pepsi Snackfoods example. But be sure that it addresses each of the 4 Ps. Email all this to me by 10/21 and be ready to discuss in class on 10/22 CCPE MP Fall 09 C 72