3024959-marketing-product-.pdf

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EZPB

Marketing 300

Project

Team #7

Dave Bissinger

Tim Cahill

Jessica Clark

Meaghan Cleary

Steve Cullen

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Table of Contents:

Cover Page

1

Table of Content.

2

Executive Summary....

3-4

Industry Revenue.4-7

Product Profile...7-9

Statement of Marketing Objectives 9-

10

SWOT Analysis

.10-11

Market Segmentation/Target Market Strategy

12-14

Market-Product Grid

.14-15

Environmental Factors

15-18

Marketing Strategy

19

Conclusion

.20

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Recommendations

...21

Works Cited

..22

Executive Summary

Imagine the process of making a peanut butter and jelly

sandwich. Now reflect upon the thought of effortlessness that would

occur when not having to get out silverware, spreading the peanut

butter and jelly, and then putting the containers away. This notion is

tactfully accomplished by the company EZPB, who aims to give peanut

butter and jelly lovers an easier and faster way to making one. EZPB

offers consumers the same great experience and the same delightful

taste that you would get when using peanut butter and jelly out of the

jar. EZPB is peanut butter and jelly mixed together in the form of a

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cheese slice that can be peeled out of a wrapper and placed on the

bread without the use of silverware.

EZPB was first thought of by Steve Cullen when he was in grade

school. He always liked to make peanut butter and jelly sandwiches,

but would always make a mess. He knew there had to be an easier

way to make them and after serious thought, he wondered why peanut

butter slices couldnt be packaged like cheese slices. When he was in

fifth grade he presented his idea to the class. Unfortunately, his

teacher thought the idea was not worthy of the classes time. Its

always been a dream of his to create this product. When he was in

college, he discussed this idea with Tim Cahill, who had just told him a

story about a roommate that came home one night and decided to

attempt to make a peanut butter and jelly sandwich. Tim woke up the

next morning to find peanut butter all over his kitchen. After the two

talked about this, they developed a plan to create EZPB. Beginning in

1997, the two began their development of the product. From there,

the two teamed up with Jessica Clark, Meaghan Cleary, and Dave

Bissinger to create a new and innovative product.

What makes EZPB such an exciting product is the lack of effort

and time that it alludes to when making a peanut butter and jelly

sandwich. Without having to use utensils, it makes making a peanut

butter and jelly sandwich quicker and easier. It is also all-natural and

therefore a very healthy and energizing product. EZPB reaches out and

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helps all different types of people. Working mothers who dont have

time to make their childrens lunches, college students who might not

have a kitchen accessible, and cafeterias that need a faster way to sell

one of their most purchased items all benefit from this new product.

The mission of EZPB is to offer a high quality, healthy,

energizing, and easy alternative to the traditional peanut butter and

jelly sandwich. At a competitive price that satisfies customers, EZPB

will also establish a positive and efficient environment for all

employees.

Industry Profile

The peanut butter industry is not just measured by the

production of peanut butter; the market also includes any sort of

establishment that deals with the production of salted, roasted, or

canned nuts, nuts that are cooked or dried, or processing grain or

seeds. This market alone is a multi-billion dollar industry that is

comprised of more then 190 different companies and producers. It is

extremely large and the money is very promising due to the regularity

of the products use. The industry's revenue for 2007 was

approximately 7 billion US dollars, with an estimated gross profit of

55%. The importing market was valued at 163.1 million US dollars from

55 countries. The industry also exported 381.5 million US dollars worth

of merchandise to 117 countries. Adding import value and subtracting

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export value from the industry's shipment value, the total domestic

demand for the industry in 2007 was 6.8 billion US dollars.

Trends YearUnited

States

Number of

Establishments

2004 191

2005 192

2006 193

Employment

2004 11,228

2005 11,219

2006 11,363

Numeric Change

from Previous

Year

2005 -9

2006 144

Percent Change

from Previous

Year

2005 -.1%

2006 1.3%

Wages Year United States

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Total Payroll Wages

2004 $386,238,940

2005 $396,548,987

2006 $412,416,376

Average Annual Wage

2004 $34,400

2005 $35,346

2006 $36,296

Average Weekly Wage

2004 $662

2005 $680

2006 $698

The peanut butter industry is an important processed food

industry in the United States. Approximately fifty-three percent, of all

domestically produced peanuts, are used in the production of peanut

butter. In 1993, the per consumer consumption of peanut butter in the

United States reached a high of 3.3 pounds per year. In 1990, the top

three firms were Procter and Gamble Co., ConAgra, and CPC

International Inc. They manufactured the national brands of peanut

butter: Jif, Peter Pan, and Skippy. This accounted for 75 percent of the

market share. A 1996 survey, by Gallup Organization, found that 63

percent of the households buy the same brand of peanut butter every

time. Thus, there is brand loyalty in the peanut butter market.

However, by 1995, the share of the top three brands lowered to about

70 percent, where Jif, Peter Pan, and Skippy accounted for 31.6

percent, 19.6 percent and 20 percent of the market share. The rest of

the market is shared by fringe suppliers who produce generic, regional

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or store brand peanut butter. These regional brands have a production

capacity of 32 million pounds per year, and that national brands have

production capacity larger than that.

The competition in this market is very tight. These three

powerhouse companies in this market make it hard to penetrate with

out uniqueness to the product. Companies like Smuckers have come

up with interesting products like pre-jarred peanut butter and jelly

already together in the bottle for easier use and lower costs than

buying both products separately. They have also generated the idea of

Uncrustables, which are pre-packaged PB&J sandwiches with out

crusts that are kept frozen until eaten. Another company very similar

to ours is called P.B slices, which sells pre-packaged slices of just

peanut butter, much like the appearance of Kraft singles.

Product Profile

EZPB saw a need that was not yet met in the peanut butter and

jelly market. Todays world is based on speed and how fast we can

access a thing we need and thats what it delivers. With our product,

you can make yourself a peanut butter and jelly sandwich in less than

15 seconds if you desire. Also, we noticed that peanut butter and jelly

sandwiches tend to cause a big mess, so we altered the process to just

one slice placed on a piece of bread and ready to go. At EZPB, we took

a look at this advancing industry and decided to take a step in a

direction not yet taken by any other company. We saw that the whole

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process of making a peanut butter and jelly sandwich was really more

time consuming and messy then it needed to be. If making a regular

sandwich with the usual products, you can create nothing more than a

time consuming disarray of dirty silverware, dishes, and even yourself

in some cases. We found the need to create our product to reduce the

clutter, time, and cost of making old fashion regular peanut butter and

jelly sandwiches. So we came up with the pre-made peanut butter and

jelly slices that are not only delicious, but healthy as well. Our product

is more filling then P.B slices, fresher than Uncrustables, and not as

messy as the already jarred together PB & J.

Today our product is made from fresh peanuts shipped from

South America, and the jellies are made out of fresh fruits from the

best suppliers in the nation. EZPB supports local businesses and

suppliers for all of its flavors. We offer Chocolate, banana, apple,

raspberry, strawberry, marshmallow, and grape. We also manufacture

and sell our own peanut butter, which is something that no other

peanut butter companies do. We oversee every step in our production

to ensure the quality of our product. Our factories are located in San

Diego, Boston, and St. Louis. These locations in the east coast, west

coast, and midwest allow us to ship our product more efficiently and

permit us to keep up with the constant demand for EZPB. All of our

factories are up to the regulations standards of the United States

government and undergo inspections weekly.

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Each product comes in a pack of 20, 50, or 100. The 20 slice

pack sells for $4.99, the 50 for $7.99, and $14.99 for 100. EZPB is a

healthy treat for anyone of any age. Our all natural preservatives and

great quality of product make our slices taste fresh even months after

they have been prepared.

Nutritional facts- Per serving- serving size = 1 slice = 3tbs.

Serving Size 3 Tbsp. (53g)Calories 240

Calories from Fat 110

Amount/Serving %DV*

Total Fat 13gSaturated Fat 2.5gTrans Fat 0g

Cholesterol 0mgSodium 140mgTotal Carbohydrate24g

Dietary Fiber 2gSugars 21g

Protein 7gVitamin AVitamin CCalciumIron

19 %11 %

0 %6 %8 %8 %

0 %0 %2 %4 %

*Percent Daily Values (DV)are based on a 2,000 caloriediet.

Statement of Marketing Objectives

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EZPBs marketing strategy is to present the advantages of our

product in the billion dollar peanut butter and jelly industry, stressing

our points of difference: healthiness, convenience, low cost and great

taste. The array of options in flavors, packaging and nutritional value

we produce will target a wide market creating immediate awareness.

Below is a brief overview of our marketing strategy.

New Customers: By providing a focused assortment of new and

convenient options for consumers, EZPB will spark interest among

various segments in the peanut butter industry. 63%, of this billion

dollar industry, has been shown as brand loyal consumers. We hope to

break into the 37% who have not yet made a brand commitment, while

creating curiosity in the brand loyal consumer segment as well. By

stressing our points of difference, we will take brand loyal customers

from other companies. Also, by offering coupons, free samples, and

give--aways we will build customer loyalty and word of mouth.

New Markets: Within 2-3 years EZPB assortments will expand to

corporations who sell products in bulk to school cafeterias ranging from

elementary to college level. This is a fragmented, lucrative market

with considerable upside potential. We also plan to partner with health

food grocery stores to sell our product nation-wide. These stores

include Trader Joes and Whole Foods

New Products: Slices will be launched in a variety of flavors and

packaging alternatives. Some new flavors are peanut butter and

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chocolate, peanut butter and different flavored jelly, and marshmallow

fluff. As sale revenues increase, we will phase in even more varieties

using the consumers as our development team. We will also appeal to

children by making our slices into shapes, Disney characters, and

animals.

Product Placement: The nutritional appeal of our organic product

combined with unique packaging alternatives and traditional product

placement should appeal to retailers looking for new and innovative

placement opportunities (product section, snacks, cash wraps, etc.).

SWOT Analysis

You will find in Figure 1, critical internal and external factors describing

the marketing opportunities of the EZPB slices since the company

began.

Figure1. SWOT Analysis for EZPB

Internal Factors

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Strengths:- Executive team of EZPB has a

similar lifestyle from growingup in a fast paced and efficientenvironment as that of its

primary target markets.- Organic Peanuts and fresh fruit

provide for healthy eatinghabits with same great taste.

- EZPB has been able to createcuriosity among 3 dominatetarget markets

- Our ability to produce optionskeeps more consumer interestand needs met.

- Our new production technology

will enable us to mass produceproducts more efficiently andquickly than our competitors.

Weaknesses:- The more flavors we create,

the more production costs willincrease

- Creating shapes in the slices

for children will increase priceof production.- New technology and production

methods will necessitategreater training and back-upneeds.

External Factors

Opportunities:- Creating a healthy product

that provides options in flavorsand nutritional value willintrigue new consumers

- Healthy ingredients will allow

us to break into the dietconsumer.

- Being a new company willprovide us the chance toestablish excitement.

- Capacity to market ourproduct outside the sandwichindustry, and provide newideas, such as bananas withEZPB slices will be a realcompetitive advantage.

- Providing fun shapes that willinterest young children will benovel and exciting.

Threats:- Established competition coming

up with similar products usinghealthy and efficient as itspoints of difference as well.

- Large companies who have

brand loyal customers providingthe market with similarproducts.

- Switching brand loyalconsumers to a smaller andnewer company

- Rising material, production, andshipping costs for a new, yetdiversified company.

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Market Segmentation/Target Market Strategy

The trends in todays sandwich market are based around the idea

that it needs to be fast, convenient, and pleasing to all. Because of

this, recent studies have shown that sandwiches have become a

household dinner item for fast-paces, busy families. A study released

by the NPD Group, which researches consumer trends, says more than

one in nine dinners at home is a sandwich (Bleimes 1). Not only are

sandwiches served for dinner, but they are the main dishes in kids

lunch boxes. Peanut butter and jelly sandwiches have been a crowd

favorite since it was invented in the 1920s and the fact is still true

today. Eighty percent of moms and dads rely on peanut butter

sandwiches for their kids lunch boxes, finds a Harris Interactive poll of

2,066 adults (Moulton 1).

The sandwich market is confined to people who have the need

for a fast, convenient and tasty treat to keep them energized and

healthy. We found that the markets with the most need for this product

are busy college students, working parents, and cafeteria workers

trying to make mass amounts of sandwiches. We feel that these target

markets are similar because all have the same need. Therefore, we

grouped our buyers into one market- those who need speedy results.

EZPBs point of difference are that our products are faster,

cheaper, healthier and more convenient for customers. Its healthy,

energy boost allows customers to continue in their day effectively.

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While some products are very processed, EZPB is homemade and

therefore has better quality overall. It not only tastes better, but is

better for you. It uses organic peanut butter and real fruit jelly to

ensure the great taste and nutrition. Therefore, all products used to

make EZPB are all-natural. The product is also designed to entice

children with a variety of different shapes, such as Disney characters

and animals.

Working parents and busy mothers rarely have time to make

lunch for their children. By using our product, all they need to do is

take an EZPB out of the refrigerator and put it on a slice of bread. The

steps are so easy and it could cut 5-10 minutes from their morning to

take for themselves. The goal of the product is to make life easier on

parents and to satisfy the childrens need. The cost is a great deal less

than buying both jars and of peanut butter and jelly and is therefore

affordable to almost any familys income.

College students rarely have the time or energy to take out

peanut butter, jelly and bread and make a sandwich. This product is so

easy that they can make it on their way out the door to their classes,

sports, or any activities. It is also a healthy way for them to stay

energized and full through out the day. Many full-time students rarely

have time to grab lunch or dinner. Therefore, they can pack their own

lunches in a convenient and fast manner. The product is also

inexpensive and will fit well into a college students budget.

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Cafeterias are responsible for making mass amounts of food for

children everyday. They have a limited time to make the dish for the

day. By using EZPB, the cafeterias could cut their lunch preparation

time more than half. They will also be relieved to know that the

children are having a healthy and well-made product, instead of the

fries, burgers, chicken fingers, and pizza sold in most cafeterias. It is

also beneficial to cafeterias because it will save a great deal of money.

When cafeterias buy EZPB in bulk, they save more than 50%, than

buying jars of peanut butter and jelly.

The market segment is organized by the psychographic customer

characteristic. In other words, these three target markets have a

similar lifestyle. Each market has the need for a fast, convenient and

desirable product. This is what these markets are looking for. Because

they have the same lifestyles, these markets can be segmented in the

same way.

The product is grouped as a way to have a fast, tasty, and easy

lunch. College students can make the snack on the go, busy parents

can make a fast lunch for their children, and cafeterias can cut their

service time in half. However, it is also a quick way to eat breakfast.

Many can use the product in the morning by putting the slices on a

piece of toast, bagel or English muffin. The result is a fast, easy and

delicious snack that can be made on the go! Using EZPB, is also a great

way to serve dinner. Many college students need a quick dinner before

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or after school activities. Working moms may need to make an

immediate dinner for their children before sporting events, music

lessons, or before their homework. It is also a great way for cafeterias

to make a fast dinner for after school care children.

Market-Product Grid:

Products: EZPB Meals

Target Markets Breakfast Lunch Between Meals Dinner After

College Students 1 3 3 1 2

Working parents 3 3 1 0 0

Cafeterias 0 3 3 0 0

(0= No market, 1=Small market, 2=Medium market, 3=Large market)

The market size for each target market is extremely large. A

great deal of working families exists across the United States and will

definitely use this product to make their lives easier. Also, by selling

EZPB on college campuses, we will expand to a larger market. By

selling the product to cafeterias all over the country, we will hit a major

market. We also expect this product to take off once word of mouth

and customer satisfaction increases.

There is a great deal of competition out there, but we feel since

our product is less processed and healthier, that our product is

superior. We will continue to strive for new customers while also

maintaining our target markets. We will market to working mothers,

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on-campus students and public school boards. Our marketing

campaign consists of giving free giveaways and trials for families,

students, and cafeterias. We plan on having workers in super markets

giving away free samples. Therefore, parents will try our product and

buy it for their childrens lunches. For college students, we plan to have

free samples on college campuses. And also give them to school

cafeterias to try them on their customers and students. This will spread

word of mouth and make our product more successful. Through the

visual appeal commercials will be used to play on family networks to

entice kids and parents to buy the products.

Environmental factors

Societal: Peanut butter and jelly sandwiches continue to be a staple in

the American diet.Our new product idea was generated through our

own and others' experience with a common problem among our target

market; the mess and inconvenience of making peanut butter and jelly

sandwiches.College students, especially late at night, create messes

trying to use ingredients such as peanut butter and jelly. Young

children trying to help prepare their own food also face similar

problems their parents would like to avoid.

Economic:The economy is in a slump so people are more reluctant to

use their income on new products that may or may not provide a

benefit to them. Instead they may stick with tried-and-true

alternatives. This may present a marketing problem until our customer

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base is aware of our more convenient alternative.Our product is

relatively inexpensive compared to its alternatives; this could have a

positive sales impact.

Technological:The manufacture of peanut butter has remained

relatively unchanged, since 1922.More jelly manufacturers are starting

to use sugar alternatives for a healthier product, but since EZPB is

natural and organic we will use real fruit sugar instead of a substitute.

Competitive: Our competition would mainly be companies that

process peanut butter and jelly individually.The leading American

seller of peanut butter is Jif, made by the J.M. Smucker Company.J.M.

Smucker is also #1 in sales of jelly products.

Regulatory: We would have to abide by the FDA regulations regarding

food processing. Peanut butter: "Such seasoning and stabilizing

ingredients do not in the aggregate exceed 10 percent of the weight of

the finished food. To the ground peanuts, cut or chopped, shelled, and

roasted peanuts may be added. During processing, the oil content of

the peanut ingredient may be adjusted by the addition or subtraction

of peanut oil. The fat content of the finished food shall not exceed 55

percent when determined as prescribed in 'Official Methods of Analysis

of the Association of Official Analytical Chemists,' 13th Ed." This

basically means we must use 10% or less of seasonings and stabilizing

ingredients. This should not be a problem since our peanut butter is all-

natural.Jelly: "The mixture referred to in paragraph (a) of this section

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shall contain not less than 45 parts by weight of the fruit juice

ingredients as measured in accordance with paragraph (d)(2) of this

section to each 55 parts by weight of saccharine ingredient as

measured in accordance with paragraph (d)(4) of this section. " This

means the amount of sugar substitutes in our product may not exceed

55%. Once again, since our product is natural artificial sweeteners will

not be a problem.

Marketing strategy

Product Strategy: We will market EZPB as an alternative to peanut

butter and jelly. It is easier to prepare food and more convenient for

busy schedules. Our product is made using organic peanuts processed

with natural fruit jelly and cooled in order to keep its shape until

actually used. Flavors include banana, strawberry, grape, marshmallow

fluff and chocolate.

Price Strategy: Our price will be discounted compared to buying

peanut butter and jelly products individually. This is more cost effective

for consumers since this product combines two into one single product.

We will use a penetration pricing strategy because our product is not

well-known. We will keep our price low during early phases of our

product's life cycle in order to sell a higher volume and increase

interest in our product through word-of-mouth.

Pricing: $4.99 for 20 slices, $7.99 for 50 slices, and $14.99 for 100

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slices.

Promotion Strategy: We will market the product to our targeted

market segments, especially college students and mothers with young

children. Our promotional strategy will include free sample giveaways

in stores and on campuses in order to generate interest in purchasing

our product. We will also use our slogan "No mess, no stress" to make

consumers aware of the two major points of difference between our

product and our competitors. To generate interest among children,

EZPB will incorporate shapes from children's television programming

onto our product; for example, putting shapes of Disney characters

onto our slices.

Place Strategy: We will connect our manufacturing centers to large

family-oriented retailers such as grocery stores. To build interest

among college students, we will sell to retail outlets such as the

Marianist emporium on different campuses. We will also market to

health food stores such as Trader Joe.

Conclusion

The peanut butter and jelly sandwich is a world-wide treat that

has been around since the 1920s. For over 80 years now, there has

been the traditional way of eating the sandwich involving spreading

peanut butter and jelly on two pieces of bread. The sloppy way of

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making the sandwich is the most famous way, but it took time, made a

mess, and required a utensil of some sort. In the fast pace world that

we live in, there is a necessity for less time consumption and more

convenient products. EZPB is an easy, healthy, energizing, and high

quality alternative to the sandwich. EZPB plans to make a substantial

difference in the billion dollar peanut butter/jelly market. The product

gives all people an easier and healthier option while still satisfying

their desire for a delicious peanut butter and jelly sandwich. EZPB

makes a peanut butter and jelly sandwich more convenient for the on

the go world we live in today.

Recommendations

As a mom with 3 kids, life becomes so much simpler just by saving afew minutes everyday, its a healthy sandwich and my children canttell the difference! ~ Sandy Cohen, soccer mom

Never underestimate a 5th graders creative mind, what might seem

like a doubtful idea, could be the next billion dollar invention ~ Mrs.Drofnalb, 5th grade teacher

Ever since I started using EZPB, I have eliminated messes in thekitchen, and my diet has improved immensely! It is the perfect mealwhen I wake up five minutes before class and need a quick bite to eat~ Patrick Bateman, student at Ohio State University.

My kids always want to help out, but every time they made their ownsandwiches they would end up making a mess all over the kitchen.Now I just hand them the bread and a stack of EZPB and were both

happy! Cathy Smith, Model, mother of three children.

When I started my new diet, I thought I would have to give up one ofmy favorite foods peanut butter and jelly. It was just too high in sugarand fat. With EZPB, I can still enjoy my favorite snack without worryingabout gaining weight.-Marcus Halberstrand, Business Sales Assoc.

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Works Cited

Bleimes, Ashley. "Sandwiches: They'Re What's for Dinner." USA Today

os (2006): 8. Academic Search Complete. EBSCO. Roesch

Library, Dayton. 2 Apr. 2008.

Deodhar, Satish Y., and Stanley M. Fletcher. Degree of Competition in

the U.S. Peanut Butter Industry: a Dynamic Error Correction

Approach. University of Georgia. 1998. 1-24. 2 Apr. 2008

.

Moulton, Sarah. "PB&J with a Twist." Prevention 52.2 (2006): 52.

Academic Search Complete. EBSCO. Roesch Library, Dayton. 2

Apr. 2008.

Owen, Thomas. "When PB First Met J." Christian Science Monitor 90.90

(1998): 9. Academic Search Complete. EBSCO. Roesch Library,

Dayton. 2 Apr. 2008.

Roasted Nuts and Peanut Butter Manufacturing Industry in the U.S. and

Its Foreign Trade. Marketresearch.Com. Supplier Relations US,

LLC, 1997. 1-166. 2 Apr. 2008

.

Salaries and Wages Roasted Nut and Peanut Butter Manufacturing.

Market Research and Statistics. Canadian Industry Statistics,

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2004. 2 Apr. 2008

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