crayola new business pitch
DESCRIPTION
Internship Project at DDB TorontoTRANSCRIPT
Wednesday, 21 August, 13
Wednesday, 21 August, 13
Diana . Carolyn . Maury
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Wednesday, 21 August, 13
INDUSTRY REVIEW
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REVENUECRAYOLA IS PRIVATELY OWNED WITH
$50-$80MIN SALES IN CANADA (2012)
Revenue Market Size Market Share Brand Share
SOURCE: INDUSTRY CANADA- CANADIAN COMPANY CAPABILITIES
Wednesday, 21 August, 13
THE WRITING INSTRUMENTS MARKET IS
$237MIN CANADA (2012)
MARKET SIZE
Revenue Market Size Market Share Brand Share
SOURCE: PASSPORT - WRITING INSTRUMENTS IN CANADA, EUROMONITOR INTERNATIONAL
Wednesday, 21 August, 13
MARKET SHAREIN WRITING INDUSTRY 15%
4%9%
11%
26%
36%
Newell RubbermaidBICCrayolaStaplesPentelOthers
1.COLOURING2.MARKERS3.PENCILS4.PENS5.WRITING ACCESSORIES6.WRITING INSTRUMENTS
Revenue Market Size Market Share Brand Share
SOURCE: PASSPORT - WRITING INSTRUMENTS IN CANADA, EUROMONITOR INTERNATIONAL
Wednesday, 21 August, 13
27%9%
9%
11%
18%
26%
BICSharpieCrayolaPapermateStaplesOthers
BRAND SHARECRAYOLA OWNS THECOLOURING SEGMENT WITH
70%MARKET SHARE IN CANADA (2012)
Revenue Market Size Market Share Brand Share
SOURCE: PASSPORT - WRITING INSTRUMENTS IN CANADA, EUROMONITOR INTERNATIONAL
Wednesday, 21 August, 13
INDUSTRY TRENDS
INDIRECT EFFECTS OF
TECHNOLOGY
CAUTIOUS CANADIAN
CONSUMERS
WRITING INSTRUMENT MARKET REACHED
MATURITY
1% GROWTH ($10M IN 5Y)
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ARTISTIC
FUNCTIONAL
ADULTSCHILDREN
Success in this mature market is achieved by attaching additional value to the physical product
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ARTISTIC
FUNCTIONAL
ADULTSCHILDREN
Success in this mature market is achieved by attaching additional value to the physical product
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Sharpie Roseart Prismacolor
Competes on PriceCompetes on Quality
$10M$56M $6MCompetes on Quality
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BRAND COMMUNICATIONS
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1960’s -70’s 1980’s 1990’s 2000’s
“CRAYOLA CRAYONS, THEY WORK ON BRAINS NOT BATTERIES”
“CRAYOLA DRAWS YOU CLOSER”
“YOU DON’T JUST DRAW WITH THEM, YOU ROCK AND ROLL WITH THEM”
“THERE’S ONLY ONE CHILDHOOD AND ONLY ONE CRAYOLA ”
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TODAY“CRAYOLA BELIEVES THAT WHAT IF IS THE GREATEST QUESTION IN THE WORLD”
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CRAYOLA
Helping parents and educators raise creative...children who will grow to be inspired, original adults.
POSITIONING PERSONALITYCreative, Inspirational, Original and Trusting
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WHY DDB?
CREATIVITYWednesday, 21 August, 13
WHY DDB?
CREATIVITYWednesday, 21 August, 13
BUSINESS PROBLEM
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BUSINESS PROBLEM
THE BREAK-DOWN
SOURCES:*IBIS WORLDWIDE, 2012**STATISTICS CANADA, 2013
PROJECTED GLOBAL REVENUES FOR THE NEXT 5 YEARS*
MATURITY TECHNOLOGY RECESSION K-12
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BUSINESS PROBLEM
LIFE SPAN
AWA
REN
ESS
CONSUMPTION
PURCHASE
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BUSINESS PROBLEM
LIFE SPAN
AWA
REN
ESS
INCREASE CONSUMPTIONCONSUMPTION
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BUSINESS PROBLEM
LIFE SPAN
AWA
REN
ESS
BONUS: GREATER TOP-OF-MIND AWARENESS THROUGHOUT LIFE
--> LOWER ACQUISITION COSTS
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DDB’S CHALLENGE
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HOW?BY BUILDING BRAND RELEVANCEWITH TEENS AND YOUNG ADULTSWITHOUT ALIENATING THE CURRENT TARGET (MOMS, EDUCATORS, KIDS)
SALES OF CRAYOLA PRODUCTS BYINCREASING THE LTV OF CRAYOLA CONSUMERS.
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INSIGHTS
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CURRENT ATTITUDES
ASSOCIATIONS TESTS
88 RESPONDENTS504 ASSOCIATIONS
CrayonsColours
Childhood/NostalgiaKids/Children
MarkersFun/Play
Art/Arts & CraftsColouring/Colouring Books
Grade School/PreSchool/KindergartenDraw/Drawing/DrawingsCreativity and Freedom
WaxPencil Crayons
RainbowsRestaurants
PaintPaper
Bright/VibrancePictures
The Crayon BoxCrayola DIY
Peeling WrapperCrayons up nose
School supplies/Back to SchoolFamily/Bonding Time
VarietySmell of Crayons
Children ArtToys
DistributionCracking/Breaking in Half
Eating CrayonsConstruction Paper
ScissorsDrawing on walls
ChalkCamp
Write/Writing MaterialPencils
The logoOil
Other
0 15 30 45 60SOURCE: PRIMARY RESEARCH 88 RESPONDENTS
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LACK OF AWARENESS FOROTHER PRODUCTS
#1: “NO USE”
BARRIERS TO BRAND RELEVANCE
OtherPencils
ChalkScissorsConstruction Paper
PaperPaint
Pencil Crayons
Markers
Crayons
SOURCE: PRIMARY RESEARCH 88 RESPONDENTS AGES 18-24, 2013
Wednesday, 21 August, 13
Drawing on wallsEating Crayons
ToysChildren Art
School supplies/Back to School
Crayons up nose
Rainbows
Grade SchoolColouring
Kids/Children
Childhood/Nostalgia
Crayons
BARRIERS TO BRAND RELEVANCE
IT’S ALL IN THE PAST
#2: “FOR KIDS”
SOURCE: PRIMARY RESEARCH 88 RESPONDENTS AGES 18-24, 2013
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WHY DID YOU STOP USING CRAYONS?
2%3%3%3%4%
10%
12%
13% 17%
34%
88 RESPONDENTS107 REASONS
Moved on to markers/pencil crayons/otherOther priorities/interestsLack precisionSchool no longer required themGrew out of itmessyBad at drawingnot given them anymore at restaurants/planesnot coolno need
MORE COMPETITORS IN THIS SPACE
SOURCE: PRIMARY RESEARCH 88 RESPONDENTS AGES 18-24, 2013
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STRATEGY
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OUR STRATEGIC SOLUTION
THE FRAME OF REFERENCEEDUCATE & OFFER NEW USAGE OCCASIONS TO MAKE CRAYOLA PRODUCTS RELEVANT TO AN OLDER DEMOGRAPHIC
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ASSOCIATIONS TO LEVERAGE
SOURCE: PRIMARY RESEARCH 88 RESPONDENTS AGES 18-24, 2013
Variety
Crayola DIY
Creativity & Freedom
Arts & CraftsFun/Play
Childhood/Nostalgia“CREATIVITY & FREEDOM”
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CRAYOLA’S INNATE QUALITIESFLIPPING “NO” INTO “YES”
WASHABLE
AFFORDABLELUXURY
CONSISTENT QUALITY
EASILY ACCESSIBLE
LACK
PRECISION
MESSY NOT
PROFESSIONAL
FOR KIDS
FUNCTIONAL EMOTIONAL INNATE QUALITIES
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IT’S OKAY TO MAKEMISTKES.CRAYOLA IS ALL ABOUTHAVING FUNAND UNLEASHING YOUR CREATIVITY.
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OPPORTUNITY TO CURATE & AMPLIFY CONVERSATIONS FROM THE LONG-TAIL
ENTERTAINING
BEAUTIFUL USEFULPROFESSIONAL USES
NOSTALGIA + POP CULTURE
ACTIONABLE
SOURCES: HEY WHIPPLE, SQUEEZE THIS, 2013
Wednesday, 21 August, 13
OUR TARGET LOVES “FIRST”-NESS*
MILLENNIALS/GEN-C (15-35)**
30% OF CANADIAN POPULATION***NOSTALGIC, CREATIVE,
47% WANT BRANDS TO PROVIDE INSPIRATION FOR THINGS TO DO, MAKE, OR BUY.*
PARENTS OF THE FUTURESOURCES: TRENDWATCHING.COM**, STATISTICS CANADA 2013***, BAZAARVOICE.COM 2013*
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0
15
30
45
60
30
54
39
46
32
CREATIVE VS. ARTISTIC
STRONGLY DISAGREE STRONGLY AGREE
0
15
30
45
60
16
23
35
15
2321
3
STRONGLY DISAGREE STRONGLY AGREE
SOURCE: PRIMARY RESEARCH 138 RESPONDENTS AGES 18-24, 2013
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TACTICS + DDB FIT
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#1. MICROSITEONLINE BRAND COMMUNITY
EDUCATE TO ENTERTAIN & TO DISPLAY MORE USAGE OCCASIONS
DRIVE SALES THROUGH BRAND ENGAGEMENT
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#2. SOCIAL MEDIA CAMPAIGN
YOUTUBE BANNER TAKEOVERS
#TBT#THROWBACKTHURSDAY
BUZZFEED REWIND
63M mentions (2013)
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#3. EVENT SPONSORSHIPFUN
GET MESSY
COLOURS
AGE APPROPRIATE
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PHASE 1 PHASE 2
INTO THE FUTURE
MILLENNIALS/GEN-C
CRAYONS
FUEL CURRENT TARGET
BIGGER EXECUTIONS
ALL CRAYOLA PRODUCTS
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THANK YOU
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APPENDIX
DUAL TARGETED PRODUCTS DIY CRAFTS
CREATIVE + DIY VS ARTISTIC
CB ANALYSIS
DDB FIT
TESTED EFFECTIVENESS
WHY GEN C
MEET NAHHEEM
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CRAYOLA DIY
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WHY DOES THIS MATTER?
REACTIVE RESPONSE PROACTIVE RESPONSE
1.TECHNOLOGY*2.STATIONARY INDUSTRY*3.BIRTH RATE**4.RECESSION
INCREASE SALES BY BROADENING TARGET
(+ LOWER FUTURE ACQUISITION COSTS)
SOURCES:*IBIS WORLDWIDE, 2012**STATISTICS CANADA, 2013
PROJECTED GLOBAL REVENUES NEXT 5 YEARS*
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0
15
30
45
60
18
3230
10
35
2
30
54
39
46
32
CREATIVE + DIY CRAFTS VS. ARTISTIC
STRONGLY DISAGREE STRONGLY AGREE
0
15
30
45
60
16
23
35
15
2321
3
STRONGLY DISAGREE STRONGLY AGREE
SOURCE: PRIMARY RESEARCH DIY 100 RESPONDENTS AGES 18-24, 2013
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FINANCIAL FEASIBILITY: C/B ANALYSISCOST MIN MAX
MICROSITE $100,000 $150,000
BANNER TAKEOVER AND YOUTUBE
$80,000 $100,000
DIRECT MAIL PIECE AND 20 BLOGGERS FOR 3-4 WEEKS
$70,000 $100,000
COLOUR RUN SPONSORSHIP $10,000 $25,000
TOTAL $260,000 $375,000
MARKET SIZE ESTIMATE
TOTAL CANADIANS 34,480,000
CANADIAN INTERNET USERS (83%)* 28,618,400
MILLENNIAL INTERNET USERS IN CANADA (41% OF TOTAL)**
11,733,544
DIY-LOVING MILLENNIALS IN CANADA*** 9,386,835
TOTAL 9,386,835
SOURCE: *WORLD BANK, 2011, **EMARKETER 2010, ***PRIMARY RESEARCH
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FINANCIAL FEASIBILITY: C/B ANALYSIS
SITUATION DIY-LOVING MILLENNIALS IN CANADA
REGULAR SM USERS
% REACH MAKES PURCHASE ONLINE/IN-STORE
PURCHASE VALUE BENEFIT
OPTIMISTIC 9,386,835 70% 20% 30% $20 $7,884,941.4
BASE 9,386,835 70% 10% 30% $20 $3,942,470.7
CONSERVATIVE 9,386,835 70% 5% 30% $20 $1,971,235.35
OPTIMISTIC 9,386,835 70% 20% 30% $10 $3,942,470.7
BASE 9,386,835 70% 10% 30% $10 $1,971,235.35
CONSERVATIVE 9,386,835 70% 5% 30% $10 $985,617.68
OPTIMISTIC 9,386,835 70% 20% 30% $5 $1,971,235.35
BASE 9,386,835 70% 10% 30% $5 $985,617.68
CONSERVATIVE 9,386,835 70% 5% 30% $5 $492,808.84
$260,000 - $375,000
SOURCES:*VISION CRITICAL, 2013, AVERAGE OF 3 SOCIAL NETWORKING SITES
Wednesday, 21 August, 13
TESTED EFFECTIVENESS OF IDEA
0
8
15
23
30
-5-4-3-2-10 1 2 3 4 5
014
13
2026
10
1000 0
8
15
23
30
1 2 3 4 5
711
1924
14
6
0
10
3029
51%
SOURCE: PRIMARY RESEARCH 75 RESPONDENTS AGES 18-24, 2013
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BRANDS PROMOTING DIVERSE USAGE OCCASIONS TO ATTRACT NEW TARGET
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WHY DDB CANADA
“MICHAELS HAS INVESTED $20M IN QUEBEC STORES...THE QUEBEC PUBLIC IS A VERY CREATIVE CUSTOMER IN CRAFTS” (NEWS 1130)
PUSHING FOR GLOBAL EXPANSION.2013 NEW USA WEBSITE, 2014 ROLL OUT CANADA & MEXICO
SOURCES: WORLD BANK, 2013
Wednesday, 21 August, 13
WHY MILLENNIALS/GEN-C
82% OF CANADIAN TEENS AND YOUNG ADULTS INTERNET USERS ARE WILLING TO SHARE THEIR BRAND PREFERENCE ONLINE*
41% OF CANADIAN TEENS AND YOUNG ADULTS WRITE ONLINE POSITIVE REVIEWS** 91% OF PEOPLE HAVE GONE INTO A STORE BECAUSE OF AN ONLINE EXPERIENCE. (SOURCE: MARKETING LAND)***
SOURCES: *EDELMAN, "THE 8095 EXCHANGE: MILLENNIALS, THEIR ACTIONS SURROUNDING BRANDS, AND THE DYNAMICS OF REVERBERATION" CONDUCTED BY STRATEGYONE, OCT 14, 2010**EMARKETER**MARKETINGLAND, 2012
Wednesday, 21 August, 13
MEET NAHEEM
Wednesday, 21 August, 13