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Kashi Frozen Pizza

Media Plan

MARS Advertising Agency

Rachel Williams Anna Folwell Sara Akhavan Michelle Ahn

Table of Contents

Executive Summary …3-5

Situation Analysis …6-34

Target Audience Analysis …7

Economic & Societal Trends …13

Brand Analysis …15

Competitive Analysis …25

S.W.O.T. Analysis …34

Media Objectives & Strategies …35-51

Target Audience & Media Mix …36

Reach, Frequency, & GRPs …42

Media Budget …43

Scheduling & Timing …48

Geography …50

Creative Brief …52-53

Appendix …54-60

About the Agency …59

Executive Summary

Our Mission Kashi is known as a brand trusted for quality ingredients, however, the brand has not yet captivated the target audience that Kashi products best serve; naturally confident, professional women. In this media plan, we are fusing Kashi’s belief in their ingredients with this Naturally Confident woman’s belief in herself and her decisions. Our big idea is to integrate Kashi’s awareness of health and well-being into our target audience’s core values. We are going to promote the Kashi brand and product by encouraging the lifestyles of our target audience and giving them outlets for their interests. We are going to grant focus to all parts of this woman’s day. With Kashi’s Thin Crust Pizza, we want to step in during dinner. By giving her a less artificial, equally convenient choice for a nutritious meal, we will ease her efforts to be healthy and happy at the end of a long, productive day. She may have yet to discover Kashi’s frozen pizza, but when she does, we know she will never look back. After all, who wants a bite-sized portion of air and chemicals for dinner when you could have pizza that fuels your lifeline—naturally? Situation Analysis: An Overview

Target Audience Our target audience is U.S. working women ages 24-54 who bear a passion for well-paying careers that allow them to demonstrate their creative capacity in the professional fields of arts, design, entertainment, sports, and media industries. They are active in their daily lives and spend their free time immersed in nature and related outdoor activities. Our audience enjoys adopting new ways of being healthy, such as engaging in daily physical activity and eating food that is natural, healthy, and full of flavor, without artificial preservatives or unknown ingredients! Our target woman can be described as “Naturally Confident,” and although she has the drive to preserve her health, she misses eating things like pizza! She may already be a devoted Kashi fan, or may have yet to discover the delicious natural benefits Kashi can offer – even in pizza!

Brand Analysis In our campaign, we will focus on Kashi frozen pizza’s all-natural ingredients as the pivotal point of differentiation among our competitors, described below. We will also place emphasis on the niche Kashi fills in our customers’ lifestyle, being a go-to brand for active professionals with an affinity toward nature and its ingredients. In our sponsored events and media usage, Kashi will demonstrate its commitment to improving the health of its consumers in all aspects of life through promoting a long-time guilty pleasure turned healthy: pizza.

Executive Summary

Competitive Analysis Our primary competitors include two mainstays in the frozen foods category catered towards health-conscious consumers, Lean Cuisine and Healthy Choice. While they both are very formidable competition, with big ad budgets and a well-established customer base, they lack the true “naturalness” that Kashi embodies. Lean Cuisine focuses more on calorie-counting than health, and Healthy Choice has very few meal options that are preservative-free.

That being said, Kashi has a lot of work to do in order to catch up with these two leading brands. At the moment, Kashi’s advertising is virtually non-existent in comparison to the amount the other two brands produce. If Kashi wants to stay in the game, they will need to build a greater brand presence in the frozen food category.

Our 4-Phase Media Campaign

Media Mix Our campaign takes shape in fours phases of advertising activity, including a variety of traditional and nontraditional media that can effectively reach Naturally Confident women. These media include 7K events, national TV, magazines, online interaction, direct mail, and several other nontraditional promotions.

Phase 1 (Local Impact and National Buzz) The campaign licks with two 7K races (on in Los Angeles, the other in New York City), introducing the product and awakening the Kashi spirit in high potential cities.

Phase 2 (National Launch) Riding on our Phase 1 publicity, the campaign will then go national, placing a national ad that integrates footage from the 7Ks on TV, in magazines, and on targeted websites.

Phase 3 (Combination: National & Spot) Next, we will launch a second national with a simpler, big idea-focused message that will run on TV and in magazines. In addition, we will market more heavily in certain high potential areas, hosting pizza give-aways at women’s gyms around the country.

Phase 4 (Loyalty Reinforcement) Our last phase will focus on retaining all of the customers that we obtained from the previous parts of the campaign. Using online components, direct mail, and nontraditional promotions, we will strengthen relations with our customers and keep Kashi in their thoughts.

The following media plan details Kashi’s current business situation and provides recommendations for their Thin Crust Pizza campaign. We hope you savor every word!

Situation Analysis

I. Target Audience Analysis II. Economic and Societal Trends

III. Brand Analysis IV. Competitive Analysis V. S.W.O.T. Analysis

This section includes all pertinent information regarding Kashi’s target audience, including our research, findings, consumer lifestyle trends, and other consumer insights. Primary Research1

On a mission to pinpoint our most marketable target audience, we conducted a research-based analysis to learn and gather insight about American Kashi consumers, their lifestyle and their consumption of frozen foods. Types of Research

Surveys We administered 30 surveys to achieve information regarding frozen foods and pizza consumption, purchasing behavior, and lifestyle (habits, attitudes, rituals, interests, etc.).

• How often do you consume frozen pizza? • How often do you consume frozen foods? • What brand(s) of frozen pizza or foods do you use? • What is your perceived image of the Kashi brand?

To develop a broad spectrum of insight, participants of the survey varied in demographic categories, including young men and women, unmarried and married, no kids and kids, collectively ranging in age from 30-55.

Interview of Retail Managers To gain background information on the stocking of and sales patterns of Kashi frozen pizza, MARS interviewed four retail and merchandise supervisors in key grocery stores (mentioned below) and heightened the understanding of product sales, distribution, turnover, and in-store competition of various types of pizzas and frozen foods sold.

Observations Covering a large local geographic area in Chapel Hill, NC and Durham, NC, we observed the consumer food shopping behavior and consumer decision-making process of over 50 shoppers in multiple grocery store settings. To gather observational data about Kashi’s market share, we additionally observed the distribution, shelving, and pricing of Kashi pizza and its competitors in key grocery stores: Whole Foods Market, Weaver Street Market, Harris Teeter and Target.

Target Audience Analysis

Results of Primary Research Thanks to our diverse group of participants, we discovered a set of patterns among similar consumers based on their survey response and reaction to Kashi.

Married women married with kids were not heavy Kashi frozen pizza consumers due to the lack of “kid-friendly” flavors, such as “plain” cheese and pepperoni. However, out of these women, those who identified as health-conscious admitted to occasionally purchasing Kashi pizza just to enjoy by themselves.

• “I really like Kashi frozen pizza for myself. The Margherita flavor is my favorite. I like the thin crust and the veggies. Health is important to me.”

• “It’s not kid-friendly - the flavors are too mature.

But I know it’s healthy. I’d buy a Kashi pizza about once a week.”

• “If I’m buying a frozen pizza, I’m only buying

DiGiorno. It’s all about familiarity. My husband and kids love it every time.”

Married couples, along with men and women who were in relationships, were not heavy Kashi frozen pizza consumers either, due to lack of flavors to satisfy both individuals and more importantly, the expensive price tag.

• “We buy frozen pizza about once a week – either Red Baron or Freschetta. It’s a lot cheaper. I know Kashi is organic and wholesome, but the brand is too full of itself.”

• “My wife and are both busy and health conscious. We

don’t eat pizza much, but when we do, we like to make it ourselves. My wife loves Kashi cereal, but I don’t think I’d share the pizza with her.”

• “We want something quick and easy, but Kashi’s pizza

isn’t flavorful enough.” After chewing stale after stale perception of Kashi frozen pizza by surveyed grocery shoppers, we finally discovered a fresh point of view behind a potential target audience.

Single women aged 25-54, with and without kids, either flourishing in their career or creating a new chapter in their life at a more mature age, openly shared their love for Kashi frozen pizza and identified themselves as heavy Kashi product users overall. These women shared Kashi’s passion to improve health through the use of natural ingredients.

• “I love Kashi! My normal pizza consumption is slim to none, but I love Kashi’s pizza. I buy the Mushroom Trio and Mediterranean flavors. I like that it’s all natural with no additives. I like to eat well – I have an active lifestyle.”

• “I buy Kashi frozen pizza a lot. I’m health conscious,

and luckily my teenage daughter is too. We love to eat it for dinner!”

• “I tried the pizza because I already eat Kashi

cereal all the time and love it. I think it’s delicious and love that it’s natural.”

Insight from Primary Research Driven, professional women see their health as an investment and exhibit the drive to preserve their health, but sometimes miss the indulgence of decadent foods such as pizza. Kashi frozen pizza fills this niche perfectly, as long as health-conscious consumers see that it’s a truly nutritious product. Secondary Research The primary research guided us to the right direction in segmenting a potential target audience for Kashi frozen pizza, but it left some holes that we wanted to fill with quantitative data. Types of Data

Demographic and Psychographic Data We reviewed demographic and psychographic data, including population sizes, consumer values, Kashi product consumption, and frozen pizza/frozen foods consumption.

Consumer Behavior Data We observed data regarding the purchase behavior of our target audience, noting the items they have purchased most frequently in the past year.

Cultural Lifestyle Analysis We analyzed research that integrated U.S. mass culture studies in popular magazines to learn about the culture and desires of our U.S. target audience. This involved reviewing the hobbies and activities of our target audience, ranked by importance. Media Use We analyzed our target audience’s use of various media vehicles, focusing those they used most frequently, including TV, magazine, and internet.

Results from Secondary Research Below is a summary of the main findings of our research, which directed our business model, creative strategy, and media plan. Findings were all based on high-ranking index numbers.

Our target audience is U.S. working women aged 25-54.2

Type Demographic Index

Kashi Cereal Primary AGE 25-34 128

AGE 35-44 141

AGE 45-54 117

WORKING WOMEN 115

Kashi consumers bear a passion for well-paying careers that allow them to demonstrate a creative capacity and execution-oriented character to the fullest. They work in the arts, design, entertainment, sports, and media industries. This passion translates into a healthy monetary value, ranging from $75,000 - $100,000+.2

Type Demographic Index

Kashi Cereal Primary

Arts Design Entertainment Sports and Media

213

HHI $100000+ 165

They are active in their daily lives and spend their free time immersed in nature-related outdoor activities during leisure or weekend hours. They enjoy activities such as hiking, camping, running, and bicycling. When not performing in the work environment, our target audience values free time as time to explore the great outdoors and connect with a natural environment.4

Self-improvement in all aspects of life is essential. Kashi consumers enjoy adopting new ways of being healthy such as engaging in daily physical activity and eating food that is natural, healthy, and full of flavor without artificial preservatives or unknown ingredients.4 Women Kashi consumers are constantly connected to media. They use the Internet to network with friends and follow information on subjects and activities of interest. They watch television regularly between work and social activities and are fans of watching programs regarding style, cooking, and health such as Style Network and Food Network. They flip through magazines such as Self and Cooking Light both gain inspiration and reaffirm their own choices in food, fashion, and healthy habits.3

Type Media Index

Kashi Cereal Primary Internet Quintiles[II] 139

Magazine Quintiles (II) 121

TV (Total) Quintiles 120

In total, there are 63,411,273 women in our target audience!4

The next page provides a more visual description of our target audience. After walking through “a day in the life,” we have named our target audience “Naturally Confident.”

Our Target Woman: “Naturally Confident” After pinpointing our target audience, we named them “Naturally Confident.”

A “Naturally Confident” woman is always in control of her situation.

Whether it’s in a sunrise yoga class, a steamy subway tunnel, a buzzing office, or on a weekend mountain retreat with her best friends, she exudes confidence in her appearance and behavior.

She always believes in herself and in her decisions. She knows what she likes, and she knows when she’s discovered it.

Not only does she work hard in her career, but also in every aspect of life. The Naturally Confident woman always has the drive to preserve her health. She may exist as a devoted Kashi fan, or has yet to discover the delicious natural benefits it offers – yes, even in pizza!

In order to gain more insight into the market Kashi will be entering, we researched economic and societal trends that may influence our target audience and product consumption. Trends in the average age of women getting married, the increasing number of women in the workforce, frozen food consumption, and the convenience of eating out successfully demonstrate the niche in the market developing for a product like Kashi Frozen Pizza. Marriage6 • Though 79% of women ages 25-44 have been

married before, 17% of women do not marry by age 35. Our target audience accommodates this single female demographic by providing a nutritious, convenient, in-home meal for one.

• The probability that women will marry by age 40 is

86%. By nurturing customer loyalty in single professional women, we will be influencing these same women to carry the Kashi brand values into their home culture if/when they do get married.

• In the latter half of the 20th century, there have been notable increases in the average

age of first marriage among Americans. This has created a large sector of the working population who are cooking for themselves, many of which care about their body’s health and well-being.

Frozen Food7 • Americans purchased almost 7 times the amount of frozen vegetables as frozen

pizza and Frozen Ready Meals combined in 2010. The market for selling frozen nutrition is wide open, aligning with our strategy to sell the convenience of nutrition without the unwanted chemicals, preservatives, and unnatural ingredients.

• If we can market Kashi Thin Crust Pizza as a cornucopia of frozen vegetables rather than simply a frozen pizza, we may hit a huge, virtually untapped market of people who want a convenient meal but also want to promote their health.

Economic & Societal Trends

Convenience8 • America has seen an increasing popularity of fast food and eating out over recent

years. This growing dependency on convenience foods may be due in part to the fact that more women are in the workforce.

In 1900, 21% of women were in the workforce. The typical woman spent 44 hours/week on meal preparation and cleanup. By 1950, 29% of women were in the workforce and weekly meal preparation time dropped to < 20 hours.

By 1999, 60% of women were in the workforce; 71% of married women with husbands and young children were working (versus 45% in 1975) and 27% of households with children were single-parent. 90% of households had microwaves, and < 10 hours/week were spent on food preparation.

Women in the Workforce9 • Further assessment of women in the workforce revealed the increasing purchasing

power of women in America, as well as their growing influence and representation in educational and professional settings. These statistics succinctly demonstrate how our target audience is not only growing, but their wallets more influential than ever (and the trend does not appear to be slowing down!)

Female consumers control 85% of purchase decisions and are responsible for $7 trillion of spending.

Increased access to higher education has allowed more women to go to college, thus increasing their ability to obtain high-level jobs. In 1940, women accounted for roughly 24% of all degrees earned. In 2009, this proportion increased to 60%!

This section analyzes the Kashi brand as a whole, particularly in respect to their Thin Crust Pizza product. The section includes information about their marketing objectives, brand culture, pricing, location of sale, promotional efforts, ad spending, media mix, and seasonality. Current Marketing Objectives10

In June of 2000, Kellogg’s acquired Kashi Company under their natural and functional foods division. In 2007, Kashi decided to venture into the frozen pizza category by introducing their new line of Kashi All Natural Pizzas. These whole grain pizzas generated approximately $36 million in national sales and Kashi plans to aggressively grow sales even further. In 2012, Kashi hopes to increase annual frozen pizza sales by 15% to $40 million while consistently portraying Kashi’s current brand culture. Kashi Brand Culture10

Kashi positions itself as a brand which uses all natural ingredients in order to create nutritious food that helps sustain a healthy life. The Kashi slogan,“7 Whole Grains on a Mission” lays a foundation of using a hearty mixture of seven whole grains and sesame, providing consumers with products that are full of protein, fiber, vitamins, minerals and carbohydrates, which are all essential to energy. With this energy, Kashi hopes that their customers will take an active role in improving Mother Earth’s health. Kashi supports sustainability by minimizing their impact throughout all of their processes including ingredient sourcing, product production, packaging, and distribution. Project SpArk, which stands for “sustaining the planet and retaining Kashiness”, has been one of Kashi’s main projects which focuses on making small green changes at the office resulting in large positive results.

Brand Analysis

The Product: Kashi Thin Crust Pizza “We’ve been busy in our Kashi kitchen. Now, we are excited to introduce our All Natural Frozen Pizzas - a naturally nutritious and delicious addition to our frozen food line. The pizza crust is made with our signature blend of Kashi Seven Whole Grains & Sesame® with flax seed and is stone-fired to bring out the natural flavors. Our pizzas are topped with real, wholesome ingredients - things like fire-roasted vegetables, tasty cheeses and all natural chicken. We take great care in combining these ingredients with flavorful sauces like our Tomato and Red Pepper Pesto.” –Kashi11

6 Fresh Flavors

o Four Cheese o Basil Pesto o Mediterranean o Margherita o Mushroom Trio & Spinach o Roasted Vegetables

Nutrition

We tried the Mediterranean!

Before After

Four Cheese Pizza12

Serving Size: 1/3 of the Pizza 260 Calories 8 grams of Total Fat 35 grams of Total Carbs 6 grams of Dietary Fiber 15 grams of Protein

Customer Perceptions

The Place: Geographic Information Key Market Areas The Kashi brand itself is prevalent mostly on the western and mid-western side of the United States. There are three cities in California that are in the top 10 cities with the highest BDIs, which is reasonable because California has a very diet centered perspective that includes fitness related activities. Then, there are cities such as Oregon, Montana, which are very “naturesque”. See the chart on the next page for a better view of our target markets!

“This is amazing pizza & not expensive! I added some fresh spinach on top, which gave it a little something more! Now it doesn’t feel like pizza will ruin my whole day of working out and eating right! THANKS KASHI!”

‐LifeChanges13 “Love the crust, the sauce, cheese, veggies…everything. The serving size is perfect for a snack, and when paired with another side of veggies or fruit, it’s awesome for lunch or dinner, too.”

‐Staceybee13

Table 1: Cities with high BDIs4

Distribution Kashi Thin Crust Pizza is nationally distributed throughout natural food stores and local grocery stores. Below are some examples of locations where Kashi Thin Crust Pizza can be found, as well as where in the store the product is displayed.

Natural food stores

Whole Foods is a natural and organic grocery store that only carries the “highest quality, least processed, most flavorful and natural foods possible.”14

Weaver Street Market is a “community owned cooperative grocery store, specializing in providing the best in local, organic, natural, and humanely raised foods.”15

DMA (City, State) BDI

Evansville, IN 186 Eureka, CA 124 Missoula, MT 121 Laredo, TX 120 Honolulu, HI 120 Bend, OR 118 Santa Barbara-Santa Maria-San Luis Obispo, CA

116

Miami-Ft. Lauderdale, FL 114 Albuquerque-Santa Fe, NM 114 San Diego, CA 113

Local grocery stores

Target Corporation is a mass retail store that carries an assortment of “unique products at affordable prices.”16

Harris Teeter, Inc is a chain of retail grocery stores who “take pride in offering the best quality and selection.”17

The Price Kashi pizza prices were in general more expensive than the other frozen pizzas that shelved around them. Kashi pizzas ranged from $3.69-$7.99 while other competitors ranged from $2.45-$3.69.

As you can see, Kashi is a little more expensive that its competitors (i.e. Lean Cuisine prices at 54 cents/oz while Kashi prices at 59 cents/oz), but this price premium reflects the higher quality of the product. With natural ingredients and hearty grains, Kashi prices reflect their value.

Distribution Center Kashi Price Competitor Price1

Whole Foods (Chapel Hill, NC) $7.99 Not sold here Harris Teeter (Chapel Hill, NC) $6.99 Lean Cuisine - $3.25

Healthy Choice - $3.69 Weaver St. (Carrboro, NC) $7.99 Not sold here Target (Durham, NC) $5.54 Lean Cuisine - $2.45

Healthy Choice - $3.25

The Promotion Kashi does many promotions through their website, social media and sponsorships.

Website10

Kashi’s website has a variety of different aspects which encourages Kashi customers to share their experiences with Kashi. The site has a separate tab for “Events” where many promotion events such as The Kashi Real Project, Make a Real Food Promise, and RecycleBank. RecycleBank allows Kashi to give coupons for their different products through recycling Kashi cartons. Social Media18

Kashi interacts with their customers on their social media sites and encourages healthy eating habits. For instance, on Facebook, Kashi shows how substituting a common snack such as chocolate pretzels with a Kashi granola bar makes a high nutrition difference. Also, Kashi has prizes for watching their Facebook page on the newsfeed.

Sponsorships10 Kashi sponsors events that are aligned with their mission to eat healthier and help the planet. As a result, Kashi teams up with various farmers’ markets which help build their all-natural image and beach clean-ups which support their efforts at sustainability.

Total Ad Spending5

Last year and this year, Kashi’s advertising spending has been approximately $31 million. However, this number has significantly decreased from two years ago advertising spending, which was $36 million, as seen below in Table A.

Table A: Kashi’s Decrease in Advertising Spending Year Current Year Last Year Two Years Ago Advertising Spending

$31,462,400 $31,348,400 $36,370,500

Difference +$114,000 -$5,022,100

Ad Spending within Kashi Products Kashi spends most of their advertising expenditures on either Various Cereal & Granola Bars ($12,690,000) or Various Food Products ($9,513,000) which is about 75% of their total ad spending. Kashi’s ad spending on their frozen pizza is around $197,000 which is less than 0.7% of their total ad spending.

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Ad Spending ($000)

The Media Mix Spot TV, Cable, and Consumer Magazines have dominated Kashi’s ad campaigns for the past three years as shown in the charts on the next page. These three media vehicles alone have contributed to an average of 90% of all advertising spending for the last three years. Individually, spending on Spot TV has increased 3%, on Cable has increased 23%, and on Consumer Magazines has decreased 18% in the past three years. Other vehicles that have decreased in share of ad spending include Net TV (-11%) and Syndication (-1%). However, Internet, a form of non-traditional media, has steadily been increasing to 6% this current year.5 Kashi Media Mix5

Looking at Kashi’s Media Mix as a whole, Kashi seems to pick vehicles that enable the brand to pick specific target markets. Spot TV and Cable are mediums that focus on certain audiences and Consumer Magazines provide niche markets.

Graph 1: Spot TV, Cable, and Consumer Magazines Dominates Kashi’s Media Mix

NET TV 0.32%

SPOT TV 14%

CABLE 43%

CONS MAG 36%

B-TO-B 1%

NEWSP 0.08% INTERNET

6%

Current Year Advertising Spending

NET TV 6%

SPOT TV 11%

CABLE 37%

SYND 1%

CONS MAG 44%

B-TO-B 0.30%

INTERNET 1%

Last Year Advertising Spending

Media Vehicle

Current Year Ad

Spending for Kashi ($000)

NET TV 102.1 SPOT TV 4442.1 CABLE 13385.6 SYND 0.0 CONS MAG 11412.8 B-TO-B 410.7 NEWSP 26.0 INTERNET 1683.1

Media Vehicle

Last Year Ad



Kashi Thin Crust Pizza Media Mix5

Kashi’s Thin Crust Pizza Media Mix is composed entirely of Internet spending. This approach is very different from their overall ad spending structure because the pizza media mix is entirely non-traditional advertising.

Graph 2: Internet Dominates Kashi’s Thin Crust Pizza Media Mix

NET TV 11%

SPOT TV 11%

CABLE 20%

SYND 2%

CONS MAG 54%

B-TO-B 1%

INTERNET 1%

Two Years Former Advertising Spending

Media Vehicle

Last Year Ad



Current Year Advertising Spending for Kashi Frozen Pizza

INTERNET 100%

Media Vehicle

Ad Spending for Kashi Pizza

($000) NET TV 0.0 SPOT TV 0.0 CABLE 0.0 SYND 0.0 CONS MAG 0.0 B-TO-B 0.0 NEWSP 0.0 INTERNET 197.3

Seasonality Kashi Pizza’s advertising spending is concentrated in the months August-October. From the data, there seems to be no apparent seasonality pattern.

Chart 1: Kashi Pizza Ad Spending focused in the months of August-October Brand Analysis Insights Based on the information gathered about Kashi as a brand and the role of the new frozen pizza, these are the key insights and challenges that we have discovered. Insights • The Kashi brand prides itself on being all natural and producing products that are

wholesome and nutritious. • The DMAs with the highest BDIs are concentrated in the West and Midwest. • Kashi has no specific promotions on their website, social media, or sponsorships

geared solely towards advertising their frozen pizza. • The only advertising medium Kashi has used to promote the frozen pizza is

Internet, which explains why the product is widely unknown. Challenges • Kashi frozen pizza is widely unknown product. • The word “frozen pizza” does not have a healthy connotation. • Kashi has only used Internet to advertise frozen pizza, and it is not one of the

mediums that the brand has largely used in the past. • Kashi does not have the expertise in the frozen food products section as they do in

their cereal/granola bar products.

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This section includes all pertinent information regarding Kashi’s competitors, including positioning, advertising expenditure, media mix, share of voice, share of market, and promotions.

Competitors Although one might expect that Kashi’s Thin Crust Pizza’s biggest competitors are other frozen pizza brands, we feel that Kashi’s main competitors are those who target similar audiences. For this reason, we consider our main competitors to be other healthy frozen entrée brands.

Kashi’s primary competitors are other healthy food producers who have expanded into the frozen pizza category, such as Lean Cuisine, Healthy Choice, and South Beach Diet. These companies’ pizza products are Kashi’s strongest competition because they have the most similar target audience, marketing to women who are looking for convenient, healthy entrees.

Kashi competes with the big names…who have big ad budgets Almost all of Kashi’s major competitors are national, well-known companies. There are not many regional and/or local companies that are in the frozen pizza business, and Kashi pizza targets customers are looking for the convenience of a frozen, healthy meal. Who aren’t we mentioning? We do not consider most of the dominant players in the frozen pizza category to be Kashi’s main competitors because they do not target the same audience. The “party-size” and “kid-friendly” pizzas (i.e. Totino’s, Red Baron, DiGiorno, etc.) do not focus on healthiness, natural ingredients, or savory fresh taste, and, for this reason, we do not consider them to be our main brands of comparison.

Competitive Analysis

14.15%

22.88% 62.11%

0.86%

Share of Voice (All Media Vehicles)

Healthy Choice

South Beach Diet Pizza

Lean Cuisine Frozen Pizza/Panini

Competitive Positioning Kashi sets itself apart with its natural, fresh ingredients and focus on whole-grains. Although its competitors have a similar target audience, they lack this “natural” quality that differentiates Kashi. Target Audiences Product Type Example Brands Audience/Positioning

Healthy frozen pizzas & entrees

Lean Cuisine South Beach Diet Weight Watchers Healthy Choice

• Women who are “dieters” • Managing caloric intake • Convenience • Want to be “healthy,” but not

necessarily “natural” – indifferent to processing/preservatives

Regular frozen pizzas

DiGiorno’s Tombstone Stouffer’s California Pizza Kitchen

• Convenience and ease • Good taste • Not worried about healthy/natural

ingredients

Kashi frozen pizza Kashi

• Health-conscious, but also conscious of food origins and processing

• Want no “unknowns” in their food • Less concerned with “dieting,” but

want fresh, real ingredients Share of Voice When calculating share of voice, we analyzed Kashi’s frozen pizza ad spending in comparison to the frozen pizza ad spending of its top three competitors: Healthy Choice, South Beach Diet, and Lean Cuisine. Total Media Mix5

First, we compared the brands’ spending across all media vehicles. Although Kashi spent nearly $200,000 on frozen pizza advertising this year, their spending accounted for only 0.86% of the category’s total ad spending. Lean Cuisine dominates the healthy frozen pizza category ad spending with over 62% share of voice. Healthy Choice and South Beach Diet are virtually tied for second, but Kashi barely competes.

3.31% 0.00%

54.03%

42.66%

Share of Voice (Internet)

Healthy Choice

South Beach Diet Pizza

Lean Cuisine Frozen Pizza/Panini

Kashi Pizza

40%

4% 15%

9%

30%

1% 1%

Competitors' Media Mix5

Net TV

Spot TV

Cable

Synd

Con Mag

Sun Mag

Internet

Internet Only5

Last year, Kashi did all of their pizza advertising on the Internet. For this reason, we analyzed Kashi’s share of voice on the Internet in comparison to its main competitors. Although Lean Cuisine still surpasses Kashi in share of voice on the internet, Kashi’s share of voice is much more impressive in this specific media vehicle. With a share of voice over 42%, Kashi blows South Beach Diet and Healthy Choice out of the water. Conclusion Although Kashi has a very low share of voice overall, it is not abnormally low considering the firm’s small ad budget and their recent entrance into the category. Kashi will definitely need to increase its share of voice if it wants to stay competitive. Competitor Media Mix Kashi’s competitors have a much more diverse media mix for their frozen pizza advertising in comparison to Kashi. While Kashi spends all of it’s pizza ad budget on Internet, its competitors spend only 1% of their pizza budget on Internet on average. Most of Kashi’s competitor’s ad budget is spent on net TV and consumer magazines, with sizeable portions being spent on cable and syndicated TV as well.

Competitor Seasonality5 Based on our analysis of the category’s advertising data, the frozen pizza category does not have much seasonality. However, companies with smaller ad budgets focus their spending in specific months while larger ad budgets spend more evenly year-round.

Key observations • Kashi spent all of it’s advertising budget in August, September, and October • Most category ad spending occurred between March and December • May, August, and September stood out as important ad spending months because

they accounted for > 10% of the total spending each

Conclusion Summer and autumn seem to be the most competitive advertising seasons.

Competitor Geography Category Development Indexes

Frozen pizza has the largest CDIs in the Midwest, Northeast, and Southeast. Top 10 CDIs4

*Other states with high CDIs included: KY, MO, KS, TX, and TN

DMA Name CDI Zanesville, OH 139 Parkersburg, WV 137 Otlumwa-Kirksville, IA-MO 136 North Platte, NE 134 Terre Haute, IN 134 Quincy-Hannibal-Keokuk, IL-MO-IA 133 Sioux City, IA 131 Bluefield-Beckley-Oak Hill, WV 131 Charleston-Huntington, WV 131 Mankato, MN 129

Brand Development Indexes

In comparison to the high CDIs in the Midwest and Southeast, Kashi has the largest BDIs in the West. Top 10 BDIs4

DMA Name BDI Evansville, IN 186 Eureka, CA 124 Missoula, MT 121 Laredo, TX 120 Honolulu, HI 120 Bend, OR 118 Santa Barbara-Santa Maria-San Luis, CA 116 Miami-Ft. Lauderdale, FL 114 Albuquerque-Santa Fe, NM 114 San Diego, CA 113

*Other states with high BDIs include: CO, NY, AK, AZ, NV, and ME Conclusion • The Midwest and Southeast have high market potential for frozen pizza, but the

West has high brand loyalty to Kashi. • Since most frozen pizza is not natural and does not target the same customers as

Kashi Thin Crust Pizza, BDIs are much more important to our campaign than CDIs. Competitor Promotions In order to gage the scale of Kashi’s promotional efforts, we compared them to two companies who target a similar audience and who we consider to be our biggest competitors: Lean Cuisine and Healthy Choice.

Lean Cuisine19 Lean Cuisine, launched in 1982 by Stouffer Inc., offers low-calorie portioned meals that are quick and easy to prepare by microwave or conventional oven (3). The brand has experienced long-term success in sales and inspired an entire new industry of single-dish frozen foods. Their recently refreshed tagline is “Be Culinary Chic,” which targets fashion-conscious women looking to lose weight, without having to see the word “diet” anywhere on the label. The Lean Cuisine product line includes three collections: Spa Collection, Market Collection, and Kashi’s most direct avenue of competition – the Culinary Collection. The Culinary Connection The Culinary Collection includes 65 varieties of frozen meals and features ten low-calorie frozen pizzas. Flavors range from Spinach & Mushroom Deep Dish, to Roasted Garlic Chicken Pizza-Wood Fire Style, to Pepperoni. It is clear that Lean Cuisine has created a variety of recipes to satisfy any female consumer’s palate and keep them coming back for more. However, consumers have yet to rate any one flavor online with 5 stars, with the Margherita pizza only receiving a 2 star rating from voters on the Lean Cuisine website. Advertising Lean Cuisine’s advertising is geared towards a similar demographic as ours: single women ages 30-55 who are on the go. TV ads feature colorful displays of women dressed in fashionable clothing holding prepared Lean Cuisine meals. While this target audience shares similarities to Kashi’s, there is a vital difference. Lean Cuisine is targeted specifically towards women who are dieting to lose weight and perhaps fit in this season’s hottest style dress. Kashi consumers, while they do “watch what they eat”, care about how natural the ingredients in their food are, not necessarily how many calories they add up to. While the Lean Cuisine consumer cares about where their food takes them (how much weight they can lose), the Kashi consumer cares about where the food is taken from (how natural the ingredients are).

Healthy Choice20 Created by ConAgra Foods in 1989, Healthy Choice represents a line of market products that addresses a need for healthy and nutritious frozen meals that are also satisfying in taste. The brand’s message to its consumers is that “you can enjoy a more healthful lifestyle without giving up the flavorful foods you love.” Products include frozen dinners and entrees, frozen novelties, microwavable soup, bread, and pasta sauce. Six frozen meal collections include Steaming Entrées, 100% Natural, Select Entrées, Café Steamers, Complete Meals, and Fresh Mixers. Healthy Choice features no frozen pizza in their portfolio, making their competition against Kashi’s frozen pizza more indirect. However, with a large focus on “meeting the ingredients,” Healthy Choice’s “100% Natural” collection of frozen meals, one of six collections under their frozen meals product category, serve as heavy competition to Kashi’s all-natural products. 100% All Natural Collection The 100% Natural collection of frozen meals are made with “wholesome ingredients that are free of artificial flavors, colors and preservatives” and made-to-prepare with a steam cooking film. All frozen meals but the Lobster Cheese Ravioli are vegetarian, which emphasizes to consumers Healthy Choice’s commitment to vegetables and other natural ingredients. The flavors have an adventurous side, like the Pumpkin Squash Ravioli, Portabella Marsala Pasta, and Asian Potstickers, catered to a more affluent audience of foodies compared to the recipes seen in Healthy Choice’s other five frozen meal collections, such as the Classic Meat Loaf in their Complete Meals collection.

Advertising Heatlhy Choice’s advertising is aimed at a very similar target audience as Kashi’s, including women 30-55 who are active and health-conscious (versus calorie-conscious like Lean Cuisine). TV ads cast popular celebrities and athletes with commercial value such as actresses Jane Lynch, Mindy Kaling, and professional surfer Bethany Hamilton enjoying a Healthy Choice meal. The women casted reflect the targeted Healthy Choice consumer: women who are not obsessed with counting calories in order to fit into this season’s hottest dress, but more focused on keeping overall good health. Unlike Kashi however, not all of Healthy Choice’s frozen meals are all-natural and free of preservatives (with the exception of the 100% Natural line), hindering the brand from reaching an audience who is on a mission to improve their health through eating natural ingredients. Online Presence Brand Social Media21

Kashi • Well-developed Facebook (123,000 likes), but nothing on the Facebook about their frozen pizza products

• No twitter, but people have tweeted about it Lean Cuisine • Well-developed Facebook (183,000 likes), but nothing on it about

their frozen pizza products, only entrees • Has 2 twitter accounts (One with 104 tweets and 262 followers,

another with 33 tweets and 734 followers) South Beach Diet • Does not utilize Facebook (undeveloped page with 149 likes)

• Very well-developed twitter (1,533 tweets and 7,429 followers) Healthy Choice • Well-developed Facebook (221,000 likes)

• Majority of page features interest-generation content on nutrition, product promotion, charity events, etc; heavy fan interaction

• Moderately updated Twitter with 6,281 followers and 2,207 tweets Brand Website Kashi22 • Frozen pizza and frozen entrees are not on the home page – have to

click on “Products” • Helpful, consumer-specific pages

o Natural Learning, Recipes, Lifestyle Tools • Online coupons, but none for frozen pizza • Well-developed, with earthy tones consistent with brand

Lean Cuisine23 • Frozen pizzas not on homepage • Very difficult to find the frozen pizzas in general • No visible coupons, but have a rewards program • Helpful, consumer-specific pages

o Track your meals/fitness, Ask a nutritionist • Well-developed with a colorful and lively vibe

South Beach Diet24 • Website focuses more on the diet itself • Only products features on the website are snack bars – not frozen

pizzas or entrees • Kraft web site does not have anything about the pizzas either

Healthy Choice25 • Visual animations of vegetables and natural ingredients • Simple “green” style interface • Access to menu of products and videos of sponsored celebrities • Only one online coupon, specifically for 100% Natural products

Brand Campaigns Kashi22 • “7 Whole Grains on a Mission”

• “The Real Project” – Donating to the real food deficit Lean Cuisine23 • Advertising their meals as “trendy”

o “Culinary Chic” o “Must-have dishes” o “What’s Hot Now”

• Lunch bag collection South Beach Diet24 • No recent campaigns known Health Choice25 • “Explore Uncharted Flavor”

• “Meet the Ingredients” • “A Hearty Alternative” • Celebrity endorsements (Jane Lynch, Bethany Hamilton, etc.)

Conclusion Food brands are not only becoming a part of consumers’ diets, but also their daily routines. In order to be successful, Kashi must be increasingly interactive with consumers in order to gain their feedback and loyalty. Key Competitive Challenges & Insights Based on the information collected about Kashi and its competitions, these are the key challenges and insights for success that we have formulated. Challenges • Getting consumers to perceive Kashi as a frozen pizza producer • Competing with more well-known frozen pizza and healthy frozen entrée brands • Getting consumers to believe that frozen pizza can be “healthy” Insights • No other frozen pizza/entrée brand has the “natural” edge that Kashi represents • If Kashi can successfully target consumers who want natural, healthy, convenient

meals, they will stand out because they are already very differentiated

This section discusses the strengths and weaknesses of Kashi’s business situation, as well as the opportunities for growth and threats to success that are present in the current market. Strengths • Kashi frozen pizza occupies center shelf, well-stocked space in many grocery stores.1 • Kashi users are loyal to the brand, and may be more likely to try Kashi pizza.2 • Kashi frozen pizza has a variety of mature flavors, well known for being created

from all-natural ingredients.22 • Kashi’s frozen pizza is the most “natural” of all its competitors and has the potential

to be considered the first “healthy pizza.”22 Weaknesses • Kashi was not one of the top frozen pizza brands in U.S. supermarkets in 2010.5 • Kashi's products are more expensive than their competitors’ products.1 • Kashi's “organic” taste turns many potential consumers away from Kashi products.1 • Kashi has a smaller ad budget than many of its competitors.5 Opportunities • Kashi frozen pizza's target audience of independent, adventurous women are

inherently more willing to try “something new.” • Campers, hikers, and women are interested in all-natural, known ingredients in their

activities as well as their food.3 • Outdoorsy, active women are influenced by product quality, especially regarding the

ingredients in and processing of their food. • Professional women have a large discretionary income.9 Threats • Kashi frozen pizza's target audience may already turn to other health-conscious

brands like Lean Cuisine or Healthy Choice for prepared meals.2 • Kashi spends the majority of their advertising money on the Internet and are not

reaching their target audience through other mediums.5 • Preparing their own food from natural ingredients may be more appealing to active

women than buying prepared food with “natural ingredients.” • Kashi products are not especially low-calorie, so weight-conscious women may

choose not to purchase them.

S.W.O.T. Analysis

Media Objectives &

Strategies

I. Target Audience & Media Mix

II. Reach, Frequency, & GRPs III. Media Budget IV. Scheduling & Timing

V. Geography

This section discusses the “big idea” of our campaign plan, gives a brief restatement of our target audience, and describes our 4-phase media plan in detail. The “Big Idea” Kashi is up against several large, well-established brands in the frozen entrees category that have big budgets and big reputations. However, Kashi has something that they do not: fresh, natural ingredients with no artificial add-ins or mystery processing methods. In order to differentiate themselves, Kashi must not only show consumers that they are more natural than their competitors, but also break through the clutter of the recent natural food buzz. Low-calorie frozen entrees are not necessarily as “healthy” as they advertise. With their products, preserving your figure comes with a lot of preservatives. Unlike them, Kashi does not sacrifice their fresh flavors or their food’s natural nourishment.

Kashi wants to preserve your health, not your ingredients. To show this, we want our campaign to bring consumers closer to their food’s roots than ever before. We think they will like what they find. Target Audience Objective To create awareness and preference for Kashi Thin Crust Pizza among our target audience of professional women ages 25-54. Strategy We chose this group because they are health-conscious and active throughout the day, they have a pretty large discretionary income, and they like to be organized and in control of their own lives. These women are “Naturally Confident,” and they do not want any “unknowns” in their food. Our target audience wants to know what they are putting in their body, and, with Kashi’s Thin Crust Pizza, they can ensure that it’s only the best.

Target Audience & Media Mix

Media Mix Objective To increase Kashi frozen pizza sales by 15%, utilizing the traditional and non-traditional media vehicles that our target audience interacts with most frequently, including national television, women’s’ magazines, online communities, and public events. Strategy Our campaign takes its shape in four phases of advertising activity. We will begin with two non-traditional events that take place on opposite ends of the country, creating both local impact and national buzz. Following these events, we will launch Kashi’s national campaign, introducing our new product to the entire nation and getting a widespread feel for where our message is resonating. While maintaining these broad awareness efforts, we will then focus extra attention on areas with high market potential. Lastly, our campaign will create lasting, communal ties with those who enjoyed their campaign experience in order to both strengthen and build upon Kashi’s current brand loyalty. The 4-Phase Campaign We want to start off Kashi’s campaign with a bang – however, we want to stay true to Kashi’s brand personality and connect with our target audience in a way that will resonate with them. To do this, Kashi will host two 7K events – 1K for each grain that Kashi proudly uses in its rich, natural foods. The events will take place in Santa Barbara, CA and New York City, two cities with large Kashi BDI’s and a heavy concentration of our target audience. Starting in March, we will promote the events in the 10 largest office buildings in close proximity to the event location, encouraging professional women to register individually or in teams with their coworkers, families, and friends. The event will also be publicized in local grocery stores, setting up tables with information, registration materials, and free Kashi pizza samples. Once they register, participants will be able to read health and exercise tips and track their preparation for the event online on the Kashi website. The actual events will take place in mid-April. At the end of the 7K, participants will get to meet some of the farmers that produce Kashi’s pure ingredients as they make pizzas to take home with them using a beautiful variety of fresh ingredients. The winner of the whole 7K will get to create their own pizza that will be recreated and sold in stores for a limited time. Local news stations and newspapers will be invited to cover the event for some free publicity, but Kashi will also take footage and interview participants. This footage will then be used in Phase 2.

After we’ve created local and national buzz, we want to take our rising awareness to the next level with a national TV advertisement that integrates footage from the 7K event and highlights the campaign’s big idea. This phase will also utilize women’s magazines and online components to enrich the nation’s introductory experience to Kashi frozen pizza. This national advertisement will run with high frequency in May only, but videos and stories from the event will always be available on Kashi’s website and Facebook page.

Riding the wave of our first national launch, we will create a second national advertisement series that more strongly emphasizes Kashi’s close relationship with its natural roots. While television, magazines, and online components will sustain the national audience’s captivation with our message, we will also reach out to specific local communities with non-traditional marketing events. These impactful touch-points will be a catalyst for consumers to go from trying the product to actually buying it. For the spot non-traditional marketing, Kashi will set up stations with information, online member registration materials, coupons, and free take-home frozen pizzas at places where older, active, professional women are likely to be. Some example locations are office gyms, women’s gyms like Curves, and exercise classes like Zumba and Jazzercise. Kashi will pick the first month’s locations based on areas with high BDIs and target audience concentration and advertise their progress. As the buzz spreads, people will be encouraged to suggest future locations for Kashi to come on their Facebook page. Kashi will then visit the suggested locations with the most “likes.” This interactive promotion will encourage likely customers to try the pizza and then purchase it on their own. The spot marketing events will run from June through October, and the national campaign will run on a pulsing schedule from June through September.

Now that we have created solid national awareness and captured the interest of multiple local markets, we want to nurture these initial relationships and help them form communities that will remain loyal to the brand and the product. Using online components, social media, direct mail pieces, and community gatherings, we will sustain continuous interaction with our customers and creatively show them how much Kashi cares.

Some of the promotions we will be running during Phase 4 include: • Kashi Kollector Rewards System

o The Kashi website and Facebook will have a point system that rewards its users for participating in their online community. Users will get points for joining the page, posting content, and giving feedback on other user’s posted content. As users rack up points, they will receive exclusive Kashi coupons and offers that go up in value as you gain more points!

• “Pizza Pump-Up” Challenge o Going along with the spot marketing at gyms that begins in Phase 3,

consumers will be encouraged to post the name of their gym on Kashi’s website and/or Facebook to encourage Kashi to come to their gym next. The suggested gyms with the most “likes” will receive a pizza give-away visit from Kashi!

• “Naturally Inspired” Challenge o Kashi will invite consumers to post pictures of something “natural” that

inspired them that day. Consumers will get points for posting and for “liking” or commenting on other posts. A photo-of-the-day will be chosen daily based on the number of “likes” it receives from other consumers.

• Natural Foods Trivia o Kashi will post weekly trivia questions on their website, Facebook, and

Twitter. Consumers who get the trivia questions right will win points for their Kashi Kollector Rewards.

• Community Philanthropy Events o Kashi will host philanthropy events a local farmer’s markets in areas with

high market potential and high brand loyalty. These events will be very interactive and community-based, like smaller-scale versions of the 7K.

• Direct Mail Coupons o Kashi will periodically send out direct mail coupons to customers who

have registered on the website or provided their information through other Kashi events (the 7K, grocery store sample tables, gym pizza give-away tables, etc.). These coupons will act as a warm reminder for customers to continue buying Kashi pizza during the winter months when Kashi’s national advertising campaign has ceased.

The Mesh: Target Audience & Media Mix When crafting our media plan, we kept our target audience in mind at all times. Below is some information that explains our thought process and shows how the media we chose for our campaign has a strong correlation to our audience’s behavior and preferences.

Media Choice Explanations Medium Why we chose it 7K Event o Target enjoys nature, social interaction, competition, & challenges6

o Works well with targeting groups of professional women National TV

o MRI data showed that customers who buy our competitors’ products watched more television than the average person.3 (See Table 1)

o People who live fitness lifestyles and/or are Kashi cereal users are more likely to be a light users of television, however, we took this into consideration when selecting our dayparts.3

o We took into consideration a professional women’s schedule when choosing our dayparts. We decided that our target would most likely watch television in the morning before her commute to work, have her television on when she came back from work while making dinner, watch a show or two on primetime, and maybe catch a late news excerpt before she heads to sleep. For this reason, we chose Early Morning, Early News, Early Fringe, Primetime, Late Fringe, and Late Night News.

o We also chose to advertise on specific channels that had high index numbers for our target audience. 3

Magazines o MRI data showed that the several groups that are relevant to our target audience are much more likely than the average person to read magazines frequently.3 These include: o Consumers who buy our competitors’ products o Consumers who have a high-fitness lifestyle o Primary Kashi cereal users

(See Table 2)

o Our campaign also chose magazines that had high index numbers for the above-listed groups.3 (See Table 3)

Internet o MRI data showed that the relevant groups mentioned above access the Internet frequently.3 (See Table 4)

o For traditional online media, we will feature our ads on targeted sites that our target audience frequents.

Direct Mail o Since our direct mail will be sent to consumers who have interacted with Kashi in the past and have provided their information, this media vehicle is very targeted to consumers with high potential for brand and product loyalty.

Tables3

Table 1: TV usage for different types of shoppers

Table 2: Magazine usage for different types of shoppers

Type Media Index

Healthy Choice/ Lean Cuisine Primary Users

Magazine Quintiles [I (Heavy)] 122

Fitness Lifestyle Magazine Quintiles (II) 121 Magazine Quintiles [I (Heavy)] 119

Kashi Cereal Primary Magazine Quintiles (II) 121 Magazine Quintiles [I (Heavy)] 115 Table 3: Indexes for chosen magazines

Magazine Type Index

Cooking Light (Magazine for Cuisine)

Healthy Choice/Lean Cuisine Primary Users

139

Fitness Lifestyle 207

Kashi Cereal Primary 225

Fitness (Magazine for Fitness)

Healthy Choice/Lean Cuisine Primary Users

180



Elle Healthy Choice/Lean Cuisine Primary Users

150

Type Media Index

Healthy Choice/Lean Cuisine Primary Users [Principal shoppers using Healthy Choice or Lean Cuisine as their primary or sole brand]

TV (Total) Quintiles[II]

122

TV (Primetime) Quintiles[III] 113 Fitness Lifestyle

[Principal shoppers who like/backpack/kyack/ rock climb/bike regularly (2-3x/month or more,

jogging at least 2-3x/wk)]

TV (Total) Quintiles[IV] 128

TV (Primetime) Quintiles[III] 109 Kashi Cereal Primary

[Principal shoppers who use Kashi cereal as their primary or sole brand]

TV (Total) Quintiles[IV]

104

(Magazine for Style/Fashion)



Table 4: Internet usage for different types of shoppers

Internet-Use 2x+/ Day Index Healthy Choice/Lean Cuisine Prime 127

Fitness Lifestyle 150 Kashi Cereal Primary 133

This section discusses our goals for reach, frequency, and GRPs throughout our campaign. Please be aware that these numbers only reflect our goals for traditional media. Objective To achieve a high reach of 85% and a high frequency of 6-8 in the beginning campaign months of May (GRPs-680) through June (GRPs-510), decreasing to a moderate reach of 70% and a frequency of 4 in July (GRPs-280), rising back up to a high reach of 80% with a frequency of 5 in August (GRPs-400) and finally winding down to a low reach of 65% and a low frequency of 3 in September (GRPs-195), in order to introduce the product to the nation and then captivate our targeted loyalists. Strategy Our campaign will utilize a pulsing strategy in order to maximize the use of our budget, minimize the amount of wear-out, and strategically capture our audience’s attention and loyalty. We decided to strive for a high reach in May and June because these are the two kickoff months for our two national TV advertisements. In order to obtain a high reach of 85% while maintaining a fairly high frequency, we are planning to use a lot of national

Reach, Frequency, & GRPs

television, which provides a wide coverage at a low cost per view. For a high frequency in both months, we will utilize magazine inserts, which have a long lifetime and are seen multiple times, and targeted Internet sites. In the following month of July, we are planning to decrease the reach and frequency but still utilize the same traditional media (national television, magazines, and Internet). In August, we will increase the reach by increasing our purchases of magazine inserts, Internet banners, and early morning television. In September, the last month in which we use traditional media, we will strive for a very low reach and low frequency because we do not want to cause wear-out.

This section discusses our budget for the media campaign and details how our budget will be used on a month-by-month breakdown. Please keep in mind that these numbers only reflect our traditional media use.27

Objective To effectively use our budget of $10,000,000 on mediums that will deliver our message to our target audience at crucial touch points in order to generate the greatest sales impact for Kashi’s Thin Crust Pizza. Strategy Based on our reach, frequency, and GRP goals and our pulsing scheduling strategy, we have allocated our budget proportionally throughout each month and medium, as shown in Table 5. Table 5: Budget Allocation

Month Total Cost % of Total Budget May $3,292,905 33% June $2,470,595 25% July $1,355,860 14% August $1,935,460 19% September $944,873 9%

Total Budget $9,999,693 100%

Media Budget

Although there are months where our predicted reach and frequencies do not meet our goals (Table 6), these results were calculated using Media Flight Plan and therefore only take our traditional media into account. Our campaign integrates a great amount of non-traditional promotions, which will bring our campaign results equal to or greater than our reach and frequency goals. Table 6: Difference between goals and estimates

Month

Reach Goal

Reach Estimate

Difference Frequency Goal

Frequency Estimate

Difference

May 85% 86.7% +1.7% 8 5 -3 June 85% 83.4% -1.6% 6 4.4 -1.6 July 70% 70.2% +0.2% 4 3.1 -0.9 August 80% 79.5% -0.5% 5 3.7 -1.3 September 65% 62.7% -2.3% 3 2.6 -0.4

Here is a breakdown of our budget usage over the specific months:

Reach: 86.7% Frequency: 5

Medium Coverage Unit GRPs CPM Total Cost Net TV-E Morning NATL :15 40 10.03 $181,895

Net TV-Early News NATL :15 70 13.84 $501,830

Net TV-Prime NATL :30 15 50.66 $393,600

Net TV-L Nite/L News NATL :15 20 15.51 $160,680

Net Cable-E Fringe NATL :15 104 7.98 $434,070

Net Cable-Prime NATL :30 19 39.57 $389,443

Net Cable-L Fringe NATL :15 75 8.83 $342,900

Natl Syndication NATL :15 40 17.72 $367,080

Magazines-Womens NATL FPG 4C 55 17.53 $426,807

Internet-Trgtd Sites NATL Banner 4 45.66 $94,600

Monthly Totals 438 14.51 $3,292,905

Net TV-E Morning

6% Net TV-Early News 15%

Net TV-Prime 12%

Net TV-L Nite/L News

5%

Net Cable-E Fringe

13%

Net Cable-Prime 12%

Net Cable-L Fringe

10%

Natl Syndication

11%

Magazines-Womens

13%

Internet-Trgtd Sites 3%

May Media Breakdown

Reach: 83.4% Frequency: 4.4



Net TV-Prime NATL :15 10 25.33 $131,200








Monthly Totals 371 12.84 $2,470,595




Net TV-Prime NATL :15 7 25.33 $65,600

Net TV-E Morning

9% Net TV-Early

News 19%

Net TV-Prime 5%


3% Net Cable-E

Fringe 17%

Net Cable-Prime

8%

Net Cable-L Fringe

11%

Natl Syndication

10%

Magazines-Womens

14%


June Media Breakdown

Net TV-E Morning

4% Net TV-Early News 15%

Net TV-Prime 5%


3%

Net Cable-E Fringe

24%

Net Cable-Prime

7%

Net Cable-L Fringe

13%

Natl Syndication

16%

Magazines-Womens

10%


July Media Breakdown








Monthly Totals 207 12.64 $1,355,860


Medium Covg. Unit GRPs CPM Total Cost Net TV-E Morning NATL :15 40 10.03 $207,880


Net TV-Prime NATL :15 10 25.33 $131,200








Monthly Totals 301 12.41 $1,935,460

Net TV-E Morning

11%

Net TV-Early News 17%

Net TV-Prime 7%


0.4% Net Cable-E Fringe

16%

Net Cable-Prime

5%

Net Cable-L Fringe

13%

Natl Syndication

11%

Magazines-Womens

14%

Internet-Trgtd Sites

6% August Media Breakdown


Medium Covg. Unit GRPs CPM Total Cost Net TV-E Morning NATL :15 10 10.03 $62,364


Net TV-Prime NATL :15 6 25.33 $65,600





Monthly Totals 134 13.53 $944,873 Keep in mind the following non-traditional promotions that we will be running throughout our campaign: March – April

• 7K Events

• Promotions in office buildings, grocery stores, etc. • Online interaction (tracking program & tips for 7K, teams discussions, etc.) • Free news coverage in locations of 7Ks

May – June • Online interaction (footage and interviews from event, etc.)

July – October • Online interaction (“Pizza Pump-Up Challenge,” Kashi Kollector Points, etc.) • Pizza Give-Aways at select gyms

Net TV-E Morning

7%

Net TV-Early News 23%

Net TV-Prime

7%

Net Cable-E Fringe

25%

Net Cable-Prime

5%

Natl Syndication

19%

Magazines-Womens

14%

September Media Breakdown

September – March

• Online interaction (“Naturally Inspired” Challenge, Natural Foods Trivia, Kashi Kollector Points, etc.)

• December: Direct Mail piece with coupon for Kashi pizzas, wishing returning customers a warm and healthy winter season.

• January: Direct Mail piece with coupon for Kashi pizzas, encouraging customers to make a New Year’s resolution to stay healthy with Kashi.

• April: Community Philanthropy Events at local farmer’s markets in select areas (high market potential and/or high brand loyalty).

This section discusses the timing of our media plan schedule. Please see the chart in the Appendix for a more detailed visual representation of our schedule. Objective To create a 12-month campaign that uses a pulsing strategy to (1) minimize wear-out, (2) keep consumers constantly engaged with community-wide events and interactive multi-media campaigns, (3) use information that is gathered throughout the campaign to influence future campaign initiatives, and (4) maintain contact with the faithful customer base we establish. Strategy Please see the Scheduling & Time Flow Chart28 and the Flow Chart of Total Costs29 in the Appendix to obtain a visual of how our campaign will flow. Why does our campaign begin in the spring? Our first promotional effort is an outdoor 7K event. Therefore, warm springtime weather will enhance the event’s atmosphere and encourage greater consumer participation.

Pizza consumption is highest in the summer. By creating a buzz in the spring, we will prepare our customers for our heavy, national summer campaign and spark interest at a vital time.

Scheduling & Timing

Why does our national campaign begin in May? Kashi’s 7K events take place in April. Since our first set of national ads will

contain footage, pictures, quotes, etc. from these events, it makes most since to release these ads while the buzz is still reverberating across the country.

Why does our first set of national ads only air for one month?

The first set of ads will share our local 7Ks with the whole nation. While this is a very integral part of our campaign, the message of these ads is very complex and will run with high frequency. In order to avoid wear-out, we wanted to make sure that these long, frequently running ads do not air for too long.

Since a good portion of our first ad set will talk about the 7Ks, these ads will not be able to focus on our big idea as much as we would like. For this reason, we will move forward to our next ad set fairly quickly so that we can better emphasize our big idea during the high-consumption summer months.

Why do we spend our entire traditional-media ad budget on the summer months?

Kashi’s competitors advertise most heavily during the summer months. In order to stay competitive, Kashi must have a strong advertising campaign during these months.5

Kashi’s campaign has a happy, active vibe, which ties in best with the summertime atmosphere.

We want to achieve a high reach and frequency early on in our campaign so that we can scope out which areas of the country have the most enthusiastic response to the campaign. These results will be used later one to target where we could like to focus our non-traditional spot promotions, online outreach, and direct mail distribution.

Why are we using the non-traditional media in the winter and following spring?

At this point in our campaign, we will have collected a great deal of consumer information. We want to use this information to keep in touch with our customers in order to (1) maintain relationships with established loyalists and (2) turn one-time users into new loyalists.

Our target audience is very active online, and several of our competitors have an established online presence already. In order to make Kashi a part of our customers’ lives, we want to create an interactive, online community that will help us sustain our brand loyalty relationship.

This section explains our campaign’s geographic strategy and provides data about certain locations relevant to our media plan. Objective To create national awareness for Kashi’s new product while focusing our efforts in specific markets that we expect to be especially receptive and enthusiastic of the Kashi brand and Thin Crust Pizza product. Strategy Our campaign begins with events held in two cities (Los Angeles, CA and New York City, NY) which were chosen based upon their high BDIs, large populations, and their reputations as well known cities. There are 275,956 women ages 25-54 in these two cities, and we believe that these locations are likely to have a higher percentage of professional women within the population than most other cities. See Table 7 for more information about these locations.4

We decided to do one of the 7K’s in California because there are 6 cities in California that are ranked in the top 20 highest BDIs for Kashi, with BDIs well over 100. New York was chosen based upon the city’s ability to give the 7K events a large amount of national publicity through news media. New England also had many high indexes in the MRI demographic data for Kashi primary cereal users and our competitor product users, as seen in Table 8.4 Table 7: Cities with high BDIs & Target Audience4

City, State BDI Population of Women 25-54

% of All Women 25-54

Los Angeles, CA 111 185,743 0.29% New York, NY 110 90,213 0.14%

Table 8: Demographic data for different types of shoppers4

Type Demographic Index Kashi Cereal Primary

[Principal shoppers who use Kashi cereal as their primary or sole brand]

NEW ENGLAND

186

Healthy Choice/Lean Cuisine Primary Users [Principal shoppers using Healthy Choice or Lean

Cuisine as their primary or sole brand]

NEW ENGLAND

112

Geography

After raising awareness for Kashi frozen pizza in both locations and benefiting from the publicity around the events, we plan to take our campaign to the national level, using traditional media such as television and magazines. After introducing the Kashi Thin Crust Pizza in heavy detail with high reach for several months, the campaign will slowly transition back to being more spot-oriented, using nontraditional media. Here are some DMA locations we may potentially target for our spot promotions based upon their BDIs and the number of women ages 25-54 who reside there:4

City, State BDI Population of Women

25-54 % of All

Women 25-54 Palm Springs, CA 111 627,859 0.99%

Laredo, TX 120 371,424 0.59% Tucson (Sierra Vista), AZ 107 391,303 0.62% Miami-Ft. Lauderdale, FL 114 88,074 0.14%

Evansville, IN 186 55,878 0.09% Distribution Kashi Thin Crust Pizza’s product distribution will be national from start to finish. We will continue to distribute the product through local natural groceries as well as local grocery stores (See Brand Analysis, section “Geography” for specific details).

Creative Brief

Objectives

1. Market Growth – Increase annual pizza sales by 15% to $40 million by 2013. 2. Consumer Awareness – Create a 20% increase in awareness for Kashi Thin Crust

Pizza, specifically among existing Kashi product consumers. 3. Increase Share of Voice – Expand Kashi’s share of voice among other natural

and/or health food brands on multiple media platforms by 20%. Project Strategy & Insight Frozen foods that cater towards health-conscious eaters are a mainstay of the natural foods and health category, which has increased with sales over $55 billion in the past decade. The “go green” trend has invaded all sectors of consumer products (especially food) and has created a platform for Kashi to account for approximately 10% of all food sales in the natural and organic category. However, frozen pizza sales are stagnant, due to the reputation of pizza as a type of food seen as an indulgence or a “no-no” for professional women who are seeking to attain an optimal level of naturalness in the foods they eat. These professional women are a prime target for Kashi pizza. Target Audience: The “Naturally Confident” A “Naturally Confident” woman is always in control of her situation. Whether it’s in a sunrise yoga class, a steamy subway tunnel, a buzzing office, or on a weekend mountain retreat with her best friends, she exudes confidence in her appearance and behavior. The Naturally Confident woman does not need a mask of make-up or a list of diet fads to boost her self-esteem in a competitive world. She always believes in herself and her decisions. She knows what she likes, and she knows when she’s discovered it. The Naturally Confident woman works hard towards health in all aspects of life, constantly evolving in both her external and internal environments. She may already be a loyal consumer of all-natural Kashi products or has simply yet to discover it. Key Consumer Insight: The Naturally Confident woman sees her health as an investment for the future. She has the drive to preserve her health, but misses the indulgence of decadent foods such as pizza. Consumer Challenge: Positioning a frozen pizza as something a health-conscious eater can enjoy guilt-free on a regular basis without undermining its high-quality nutrition. Single Most Important Message: “At last, I can eat pizza again – and it’s good for me!” Supporting Message: Preserve your health, not your ingredients. Call to Action: http://www.kashi.com/products/category/Pizza Tone: Fresh, Smart, Self-Affirming, Active Media Vehicles: Event sponsorships, Consumer magazines, TV, Online, etc. Budget: $10,000,000

Creative Brief

Appendix

1 MARS conducted interviews in Harris Teeter, Weaver St. Market, Whole Foods, and Target (Chapel Hill locations). Individual consumer responses were kept anonymous. 2 Data taken from Excel Spreadsheet labeled KashiCaseMRIDemos. Source: 2007 MRI Doublebase, Copyright 2007 MRI. 3 Data taken from Excel Spreadsheet labeled KashiCaseMRIMedia. Source: 2007 MRI Doublebase, Copyright 2007 MRI. 4 Data taken from Excel Spreadsheet labeled KashiCaseMktData. Source: 2007 MRI Doublebase, Copyright 2007 MRI. 5 Data taken from Excel Spreadsheet labeled KashiCaseCompetitive. Copyright 2008, TNS Media Intelligence. Copyright 2008, Magazine Publishers of America Inc. 6 Goodwin P, McGill B, Chandra A. "Who marries and when? Age at first marriage in the United States," 2002. NCHS data brief, no 19. Hyattsville, MD: National Center for Health Statistics. 2009. <http://www.cdc.gov/nchs/data/databriefs/db19.htm> 7 Pierce, J.J. "Recession Hits US Frozen Food Market; Slight Gains for Canada and Mexico." Frozen Foods in North America. QUICK FROZEN FOODS INTERNATIONAL. EW Williams Publications Company. January 2012. <http://www.qffintl.com/pdf/jan-2012/frozen-1.cfm> 8 French, Simone A., Mary Story, and Robert W. Jeffrey. “Environmental influences on eating and physical activity.” Annual Review of Public Health. Vol. 22: 309-355 (May 2001). <http://www.annualreviews.org/doi/full/10.1146/annurev.publhealth.22.1.309> 9 Quast, Lisa. "Causes And Consequences Of The Increasing Numbers Of Women In The Workforce." Forbes. 14 February 2011. <http://www.forbes.com/sites/lisaquast/2011/02/14/causes-and-consequences-of-the-increasing-numbers-of-women-in-the-workforce/> 10 “Meet Us,”Kashi.com, 2012, 13 April 2012 < http://www.kashi.com/meet_us>. 11 “Kashi Thin Crust Pizza,” Kashi.com, 2012, 13 April 2012 < http://www.kashi.com/products/category/Pizza>. 12 “Four Cheese,” Kashi.com, 2012, 13 April 2012 < http://www.kashi.com/products/kashi_thin_crust_pizza_four_cheese>.

Appendix

13 “Mediterranean,” Kashi.com, 2012, 13 April 2012 < http://www.kashi.com/products/kashi_thin_crust_pizzas_mediterranean>. 14 Whole Foods Market, 2012, 13 April 2012 < http://www.wholefoodsmarket.com>. 15 Weaver Street Market, 13 April 2012, < http://www.weaverstreetmarket.coop/>. 16 “Company Overview,” Target.com, 2012, 13 April 2012 < http://sites.target.com/site/en/company/page.jsp?contentId=WCMP04-030795>. 17 “About Us,” Harris Teeter, 2012, 13 April 2012 < http://www.harristeeter.com/about_us/about_us.aspx>. 18 “Kashi,” Facebook.com, 13 April 2012, 13 April 2012 < http://www.facebook.com/#!/kashi>. 19 < http://www.fundinguniverse.com/company-histories/Stouffer-Corp-company-History.html > 20 <http://www.conagrafoods.com/consumer/brands/getBrand.do?page=healthy_choice> 21 < www.facebook.com> ; < www.twitter.com> 22 < www.kashi.com> 23 < www.leancuisine.com> 24 < www.southbeachdiet.com> 25 < www.healthychoice.com> 26 Data taken from Excel Spreadsheet labeled KashiCaseLifestyleProdUsage. Source: 2007 MRI Doublebase, Copyright 2007 MRI. 27 Media Flight Plan calculations.

28 Scheduling & Timing Flow Chart

29 Flow Chart of Total Costs

MARS Advertising Agency

Our Name MARS gets its name from its creators: Michelle, Anna, Rachel and Sara. Each of us contributes equally to the agency’s vision and, although we are all out of this world, we are all on the same planet. Our imaginations are outside the stratosphere, but together we hit the ground running. Our Mission MARS’ mission is to recenter the focus of advertising to the communities we serve. Using our strong balance of creativity and business logic, we transform traditional advertising into a consumer-driven interactive continuum. Our Positioning MARS Advertising Agency is earth-shattering. With our celestial skillset and out-of-this-world vision, we are equipped to take giant leaps beyond the traditional advertising world. In our orbit, integrity aligns with confident creativity. We set the bar high, literally. But we are nothing without our “universe”- our client and target audience are the stars of our campaigns. See how bright you can shine. MARS, lightyears ahead.

About the Agency

Our Members

Meet Michelle, a junior from Chapel Hill pursuing a major in Business Administration as well as a minor in Advertising. Although she plays on UNC’s varsity golf team, Michelle is more than your average jock, and she would love to someday land a job at an advertising agency. Michelle is a strong strategic thinker, and complements our team with her expert excel skills. Something you wouldn’t guess about Michelle? She’s obsessed with peanut butter. Meet Anna, a senior from Winston-Salem pursuing a double major in Journalism and Communication Studies, as well as a minor in History. After spending the past two summers working as a Market Researcher for Fox Sports Network and BBC World Service, Anna hopes to work in Los Angeles when she graduates. With her perceptive mind and confident presentation skills, Anna’s strengths lie in her ability to solve problems visually and creatively. Something you wouldn’t guess about Anna? She drives a motorcycle and can also ride a unicycle!

Meet Rachel, a junior from Atlanta pursuing a major in Business Administration as well as minors in Advertising and Spanish. After studying abroad in Spain last summer, Rachel will be spending this summer interning with General Mills in Philadelphia, an experience she hopes will help her reach her goal of working in Brand Management. With her strong administrative skills and experience working with Prezi, Rachel is great at seeing the big picture and helping her teammates streamline the end product. Something you wouldn’t guess about Rachel? She grew up in Wisconsin, and she’s had a cornea transplant! Meet Sara, a junior from Charlotte pursuing a major in Advertising as well as a minor in Entrepreneurship. With parents from Spain and Iran, Sara is a cultured, independent spirit and cannot wait to start up her own small business - that is, after some post-graduation traveling. With her vibrant creative mind and execution-oriented work style, Sara brings innovative energy to our team. Something you wouldn’t guess about Sara? She loves cross-fit workouts and good tattoos (she has 2!).

Thank you for taking the time to read our Kashi Media Plan!

We hope you enjoyed reading it as

much as we enjoyed creating it.

-MARS

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