Table of Contents

Executive Summary

Situation Analysis 1

ANALYSIS OF MARKETING OBJECTIVES 1 COMPETITION 2 COMPETITIVE ADVANTAGE 3 BRAND PERCEPTUAL MAP 4 BRAND HISTORY 5 TARGET AUDIENCE 6-8 MEDIA MIX 8-12

Media Objectives, Strategies And Rationales 13

TARGET AUDIENCE 13 TARGET MEDIA MIX 15-24

NATIONAL MEDIA RATIONALES NETWORK RADIO WOMEN’S MAGAZINE INTERNET: SOCIAL MEDIA INTERNET: TARGETED SITES

SPOT MEDIA RATIONALES 22 SPOT CABLE SPOT RADIO OUTDOOR

REACH/FREQUENCY 25 MEDIA BUDGET 27 GEOGRAPHIC 30 SCHEDULING/TIMING 32 SALES PROMOTION 34

Media Flight Plan

GOAL SHEET FLOWCHART YEARLY SUMMARY

Appendix

Executive Summary

Background TimTam has long been Australia’s favorite cookie. Since acquiring the brand from down- under in 2009, Pepperidge Farm has failed to stay afloat in the cookie category. Dominated by fun and popular brands like Oreo, Pepperidge Farm hopes the TimTam brand launch can add some value to the perception of the company and ultimately drive brand sales.

Objectives Through the brand release, Pepperidge hopes to achieve 12% overall growth for its parent Campbell Company and $18 million in sales from the TimTam line alone. Considering the cookie’s unique product positioning – foreign allure, indulgent taste, cult-like community – an opportunistic target audience has been identified for the media plan.

Target Audience The media plan will broadly target hardworking, on the go women aged 25-49. These women like to try new things, their friends would describe them as dignified and sophisticated, and they most likely live within a close distance to a major US city.

Media Budget An $18 million budget has been split roughly 70%-30% between national and spot media. Spot marketing will take place in 7 opportunistic markets across the northern half of the US that represent over 16.4% of the total US population.

Campaign Details The campaign will run from August to April, avoiding summer months when category spending is cluttered and attaining share of voice is challenging. Reach and frequency will gradually build up from a low of 65/2.5 in August up until the holiday season, when R/F reach 90/5.0 in December and January.

Media Mix With the launch of a new brand comes a new media strategy. In an effort to strike up conversation about TimTam, heavy spending on banner ads and targeted websites and paid social media will make Internet advertising a cornerstone of the media mix. Magazines and network radio will support on a national scale. Spot market media spend will include radio, transit/urban outdoor and two months of spot cable during the holiday push.

Sales Promotions TimTam will invite consumers to submit their best TimTam creation for a chance to go “Home for the Holidays” with three friends: an all expense paid trip to Australia for a week in December. A tri-city sampling promotion will seek to stimulate trial of TimTam biscuits among those who may not yet know of their deliciousness. Social media will act as a multiplier for both sales promotions and outdoor executions.

! Situational Analysis

Analysis of Marking Objectives: 4P’s Product Pepperidge Farm is introducing a new product line of indulgent chocolate biscuits into the US market. Two layers of chocolate malted biscuit, a light chocolate crème filling and an outer coat of chocolate make up a TimTam, a ready-to-eat cookie that carries cult-like status in Australia and New Zealand (Newell, 2013). TimTam will be added to a strong line of Pepperidge Farm cookies to boost performance in the Baking and Snacking Division of Campbell’s International, the parent company.

Place The TimTam brand was made available at Target stores in a limited number of major metro markets, but Pepperidge Farm aims to roll the cookies out on a national scale. Pepperidge Farm distributes its products in all major national and regional grocery stores, including cookies ranging from Milano to Chessmen, and soon, TimTam.

Price During the limited Target store release in 2009-2010, one 7oz. package of TimTam cost $3.39, aligned with average cookie package costs like OREO ($2.99-$3.99). Target frequently sold TimTam for the price of $2.50 on sale or offered other price promotions. However, standard cookies like OREO come with 30 cookies (439g) and TimTam only come with 11 biscuits (200g). Because of this price-quantity relationship, the brand’s foreign reputation, and the Pepperidge Farm labeling, TimTam will be perceived as a more premium snack cookie.

Promotion The most recent promotional effort from Pepperidge Farm regarding TimTam was via Facebook in the winter of 2012. The TimTam Cookies page (US) has 21,630 likes and has outdated contest and coupon promotions from the limited release in Target stores. One effort included a printable $1-off coupon in December of 2010 as a holiday push (Livesey, 2010).

Pepperidge Farm also collaborated with Gail Simmons, a judge on Bravo’s show Top Chef, when TimTam first launched in 2009. As a promotional event, Gail opened the first case of cookies in New York City and shared them with fans. During the introductory launch, consumers and TimTam fanatics were encouraged to share their thoughts via photos and videos on www.ILoveTimTamCookies.com. One lucky winner was selected each month and received a TimTam-themed party pack from Pepperidge Farm. Social media buzz was a centerpiece to the campaign during NYC sampling events and Australian-themed restaurants and bars leading into the holiday season (Pepperidge Farm, 2009).

! 1 Competition

Category Analysis: Cookies and Crackers Of the $23.5 billion Cookie, Cracker and Pasta Production Industry in the US (NAICS Code: 31182), 26.6% of products can be classified as cookies. This industry has experienced an annual growth rate of 1.8% over the last five years and is forecasted to grow by 2.3% in 2014 (Cohen, 2013). Despite the industry growth, cookie consumption has decreased in recent years due to growing health concerns and awareness of high sugar intake. Within the massive cookie industry, the TimTam brand falls into several categories: Ready-To-Eat, Premium Cookies, and Fudge-Covered. Direct competitors within the industry are few, but there are several indirect competitors in both the cookie and candy categories.

Major Players The cookie and cracker industry is highly competitive with more than 300 legitimate players. The top 50 of these companies accounted for 90% of industry revenues (Gale Group), with Kraft Foods (now Mondelez International, Inc.) accounting for nearly 40% alone with flagship brands OREO and Chips Ahoy! (Frank, 2013). While these companies produce an extensive range of cookie products, Pepperidge Farm is more focused on the Premium Cookie segment with over 40% market share as defined by Mintel reports (Frank, 2013).

Leading Companies – Cookies and Cookie Bars in the US (Frank, 2013) Parent Company Brands Cookies 2012 Market Share Kraft Foods Nabisco OREO, Chips Ahoy! 37.4% Kellogg Company Keebler Keebler, Famous Amos 11.7% Campbell Soup Co. Pepperidge Farm Milano, Chessmen 5.0%

Standard Cookies Premium Cookies

Original Single Stuff! LU Le Petit Écolier! Nabisco! Nabisco! $544.4 million in 2012" $14.9 million in 2012"

Chips Ahoy!! Gamesa Marias! Nabisco! PepsiCo! $520.3 million in 2012! $10.1 million in 2012!

Fudge Stripes! Nonni's Biscotti! Keebler! Nonni's Food Company $64.4 million in 2012! $12.5 million in 2012!

! 2 Premium cookie brands offer higher quality ingredients and typically taste better than standard cookies. This segment has experienced a decline in sales over the past six years (8% total), presenting an opportunity for new and exciting products (like TimTam) to grab consumers’ attention. While Pepperidge Farm has a strong position in this segment, there is ample opportunity for growth outside of the Milano line, which holds 11.7% market share (Frank, 2013). Parents and adults are much more likely to consume premium cookies than children, who often opt for popular favorite OREO and Keebler brands.

Other Indirect Competitors • KitKat (Nestlé) – Although considered a candy bar, KitKat has the same chocolate/biscuit combination as TimTam. • Mallomars (Nabisco) – Chocolate coated marshmallow treats that have been around for 100 years. • Stella D’oro (Brynwood Partners) – Fairly popular breakfast/coffee treats, often consumed with a warm drink, competes with TimTam in this area.

Competitive Advantage While competition is fierce within the ready-to-eat cookie market, TimTam has several brand and product advantages among its competition. • Passionate brand fanatics – TimTam is more than just a cookie brand for its passionate group of Australian fans. Arnott’s TimTam page has over 173k likes and tons of commentary • Unique product usage – This passionate group of TimTam fanatics have discovered several unique ways of eating a TimTam unlike any other cookie. o The TimTam Slam – Extremely popular method. The process involves biting off opposite ends of the TimTam and drinking a hot liquid (usually coffee or cocoa) through the cookie, melting the inside layer of chocolaty goodness. Tons of videos on YouTube demonstrating the process, consumers are absolutely crazy about it. o The Nibble entails eating the outside layer of chocolate first. o The Twist involves twisting the biscuit away from the chocolate.

• Foreign allure – Americans who have either traveled abroad or who have met Australians or New Zealanders have probably heard the TimTam name before. The cookie carries somewhat of a mysterious yet legendary perception among Americans who have never tried it before, but know of the cookie’s die hard fanatics. Those who aspire to be more cultured and who like to buy foreign goods will jump at the opportunity to try an imported treat.

! 3 Brand Perceptual Map: Price vs. Sophistication

More Sophisticated

Less Expensive More Expensive

Less Sophisticated

TimTam Positioning Considering the factors of price and sophistication, there is room in the market for TimTam to gain unique positioning. While in terms of value per pack, TimTam would be considered on the more expensive side (see Price on pg. 1), it garners a more sophisticated perception. Because of the brands imported connotations, along with the practice of consuming TimTam with coffee or hot drinks, pushed the biscuit towards an older crowd. Unlike Keebler and Chips Ahoy!, TimTam is less appropriate for kids and has an implied level of indulgence only an adult could recognize. Brands like LU Petit Écolier, while highly sophisticated, can cost upwards of $4.50 per pack with a smaller sized biscuit than TimTam. Cookies marketed with as an affordable indulgence can help consumers achieve a slice of luxury while remaining within their budgets (Frank, 2013).

! 4 Brand History Pepperidge Farm is a commercial bakery founded by Margaret Rudkin in 1937. Rudkin began baking goods for her son who was allergic to most commercially processed foods. Her bread was first sold in a local grocery store in Norwalk, Connecticut and popularity forced the company to move into a factory in 1940.

Rudkin expanded the Pepperidge Farm product mix to cookies, frozen pastry items, and later on the Goldfish snack. Her inspiration for the products came from her experiences from traveling abroad. The company was then sold to Campbell Soup Company in 1961 in which she became the first woman to serve on the board. Today, Pepperidge farm has a strong 75-year heritage and is part of Campbell’s Global Baking and Snacking Division.

In terms of TimTam, originally made by Arnott’s that is a sister company of Pepperidge Farm, has been produced in Australia since 1964. It is the number one chocolate biscuit in Australia with 1 in every 2 households in Australia containing a packet of TimTams and 35 million packs are sold each year in Australia (About us). There is a cult-like following for the cookie in Australia and New Zealand but has also gained popularity with foreigners who visit the country. TimTam’s cultural identity makes the brand a good fit for the assortment of distinctive cookies that Pepperidge Farm already sells.

Product Life Cycle

!

On a national scale TimTam would fall under the introduction phase of the product life cycle due to its recent introduction in the US market. However, given that they were initially introduced in 2008 and that there is a small following, it can also be considered very early in the growth stage of the product life cycle.

! 5 Target Audience

Demographics Primary Target Secondary Target Gender Female Age 25-49 25-34 Race Predominantly White with a high usage among Black County Size County size A Education High school Graduate College Graduate Income >$30,000 >$50,000 Marital Status Any Single Employment Mostly Professional/Technical, Office and Administrative Generally busy, on-the-go media consumer, live near a Lifestyle metropolitan area, independent, socially active, knowledgeable, refined taste, doesn’t mind indulging from time to time

The demographic info above was chosen based on analysis of a wide range of indexes on Simmons, MRI+, and Mintel (see Appendix). Research shows that TimTam is perceived by consumers as an indulgence, treat, or reward; therefore well received by an audience who is generally busy and lives an on-the-go lifestyle.

Higher consumption of cookies: 28% of all Black adults consumed 16 or more packages in the last 30 days with an average across all races of 16%. While white represents a larger market, the black demographic consumes more cookies per person (Frank, 2013).

! 6 Psychographics and Product Usage: • “Any Agree” to the following: Primary Target Secondary Target I enjoy eating foreign foods 110 121 Money is the best measure of success 106 146 I like to try new things no one else has 112 116 I like the idea of traveling abroad 136 126 Refined, gracious, sophisticated, dignified 124 132 Work Centered Scale: 93 156 5 = Far Above Average 16 or more packages of cookies of ready to 102 128 eat cookies in last 30 days Indices exclude education, income & employment filters to maintain sample size (SIMMONS)

• Women 25-44, White or Black, County size A have the following brand summary indices for Ready-to-Eat Cookies (SIMMONS): o Keebler: 106 o Nabisco: 110 o Pepperidge Farm: 128 • Snack Food Report (Lyons, 2013) o 34% of consumers like to eat snacks that add excitement to the daily diet o 54% of consumers consider snacks an important part of social occasions • Mintel Consumer Index o “I would like see more indulgent cookies” ! Ages 25-34: 65% (highest) ! Ages 35-44: 61%

Geography

General cookie sales according to MRI+ all show average indices around 100 across all regions (Northeast, South Midwest, West). When specifically focusing on Pepperidge Farm Distinctives, the Northeast index highest with 129 and the West index the lowest with 72. One likely reason for this shift in index is the impact of winter and cold weather and the combination of cookies and warm drinks. The chart below outlines the top 30 markets and index ratings that represent category and brand consumption.

No. Opportunity Market CDI BDI 1 New York-Northern New Jersey-Long Island, NY-NJ-PA 235 210 2 Los Angeles-Long Beach- Santa Ana, CA 96 132 3 Chicago-Joliet-Naperville, IL-IN-WI 156 98 4 Dallas-Fort Worth-Arlington, TX 104 39 5 Philadelphia-Camden-Wilmington, PA- NJ-DE 143 195 6 Houston-Sugar Land-Baytown, TX 101 98 7 Washington-Arlington-Alexandria, DC-VA-MD-WV 89 200 8 Miami-Fort Lauderdale-Pompono Beach, FL 41 116

! 7 9 Atlanta-Sandy Springs-Marietta, GA 91 86 10 Boston-Cambridge-Quincy, MA-NH 80 162 11 San Francisco-Oakland-Fremont, CA 114 181 12 Detroit-Warren-Livonia, MI 87 80 13 Riverside-San Bernardino-Ontario, CA 102 107 14 Phoenix-Mesa-Glendale, AZ 178 98 15 Seattle-Tacoma-Bellevue, WA 119 66 16 Minneapolis-St. Paul-Bloomington, MN-WI 72 39 17 San Diego-Carlsbad-San Marcos, CA 225 124 18 St. Louis, MO-IL 129 71 19 Tampa-St. Petersburg-Clearwater, FL 72 40 20 Baltimore-Towson, MD 129 71 21 Denver-Aurora-Broomfield, CO 152 84 22 Pittsburgh, PA 142 78 23 Portland-Vancouver-Hillsboro, OR-WA 161 122 24 Sacramento-Arden-Arcade-Roseville, CA 117 88 25 San Antonio-New Braunfels, TX 327 157 26 Orlando-Kissimmee-Sanford, FL 108 113 27 Cincinnati-Middletown, OH-KY-IN 106 105 28 Cleveland-Elyria-Mentor, OH 112 83 29 Kansas City, MO-KS 135 101 30 Las Vegas-Paradise, NV 155 117 ***See Appendix for full CDI/BDI calculations from population and category percentages.

CDIs and BDIs were calculated through the use of census information, category spending, and brand spending. There are multiple markets that show high CDIs but low BDIs, giving a good indication to where Pepperidge Farm can allocate further advertising to gain brand awareness in particular markets.

Purchase Cycle/Seasonality Cookie sales in terms of the category see an increase of 20% during the three key months of September, December, and February. The seasonal spikes correlate with back-to- school, Christmas holidays, and Valentine’s Day. The remainder nine months of the year indicates stable sales (Newell 2013, p.5)

With regard to the purchasing cycle, it is a fairly rapid one. For the time it takes for a consumer to become aware of the product, consider alternative, make a decision and decide whether or not they are satisfied is not very long. Cookies in general are not necessarily weekly purchases, often bought on impulse while walking down the grocery store aisle.

Media Mix The media mix can be segmented in several relevant ways for the TimTam launch: by the broad product category, by advertising expenditure of major players, and by the primary and secondary targets outlined above. Each method of analysis presents different media

! 8 opportunities and challenges, and a holistic view of all three provides insight for the ultimate choice of media.

General Cookie Consumer Media Usage Quintile I (Heavy) II IV V (Light) Total TV 107 104 90 96 Primetime TV 114 97 97 94 Magazines 117 98 96 93 Newspapers 103 102 94 95 Radio 106 100 103 96 Internet 101 100 99 95 Outdoor 100 96 103 102 Indices (from MRI+) are averages across five groups of cookie shoppers (see Appendix).

The indices for general consumers are a mean of five segments: consumers of Enrobed Cookie Bars, Pepperidge Farm cookies, Fudge Cookies, Chocolate Covered Cookies, and Heavy Cookies. All of these characteristics apply to the TimTam brand and therefore give a snapshot of what media future TimTam consumers will typically view. While Television and Magazines lead the way, the media usage is flat overall. It is difficult to make any broad generalizations about media usage without any indices over 120.

Target Media Usage Primary Target Secondary Target Quintiles (Heavy) I II I II Radio Drive Time 127 118 141 74 Radio All Day 119 105 144 82 TV Prime Time 97 97 108* 56* TV Early/Late 93 74 77* 69* Outdoor 110 107 84 98* Internet at Home 135 113 149 116* Internet at Work 165 147 87** 77** Newspapers last 30 days? “Yes”: 96 “Yes”: 85 Magazines last 30 days? “Yes”: 106 “Yes”: 88 *use with caution, smaller than ideal sample size. All indices from SIMMONS A cross tabulation of media usage versus the primary and secondary targets (demographics outlined on page 6) provide greater focus. • Both target segments index high for radio all day and drive time. • Unlike all general cookie consumers, the primary target segment is below average

! 9 for television viewing. • Internet is by far the most frequented medium with indices well above average.

Before settling on media decisions, it is essential to have a firm understanding of where the competition rests in terms of advertising expenditure. Total category spending is segmented by major brands and mediums in the tables below (Kantar Media):

Competitive Spending 2010 2011 2-Year Sum By Major Brands $(000) Percent $(000) Percent $(000) Percent Oreo 22,611.9 24.64% 20,466.5 18.73% 43,078.4 21.43% Keebler Various 7,845.6 8.55% 9,067.8 8.30% 16,913.4 8.41% Oreo Fudge Creams 5,209.6 5.68% 10,062.1 9.21% 15,271.7 7.59% Oreo Cakesters 12,755.3 13.90% 216.6 0.20% 12,971.9 6.45% Chips Ahoy! 8,434.9 9.19% 3,695.0 3.38% 12,129.9 6.23% Fudge Shoppe 1,185.2 1.29% 9,288.9 8.50% 10,474.1 5.21% Oreo Double Stuf 5,654.4 6.16% 1,680.9 1.54% 7,335.3 3.65% Milano 4,664.5 5.08% 1,624.3 1.49% 6,288.8 3.13%

Share of Voice (SOV) across all media among category leaders (marketing spend): • OREO’s domination of marketing spend may seem like too much, but in 2012 these efforts paid off as the brand saw an increase in sales of more than 7% and increased its leading market share to 14.5% (Frank, 2013). • Pepperidge Farm’s Milano line held a 3.13% share of advertising spend over the two year period, which was the smallest budget among major brands like OREO, Chips Ahoy! and Fudge Shoppe. • Although Pepperidge Farm could not keep up with competing brands in 2010- 2011, this presents an opportunity for growth in share of voice. The months of November – January are significantly lower than the monthly average with most brands operating under the assumption that cookies will sell during the holidays no matter what. This may be an opportunity for TimTam to gain launch awareness.

Opportunity: Category Ad Spending by Month Month 2010 2011 Average January 2.48% 2.61% 2.54% November 1.49% 1.77% 1.63% December 0.27% 0.43% 0.35% All Other Months Average 4.60% 5.50% 5.05%

• One interesting observation (not in the table above) is the $14,852,800 marketing launch budget for Newton Fruit Thins, which hit the market in 2011. This budget garnered a 7.39% SOV just five months from May-October 2011.

! 10

Competitive Spending 2010 2011 2-Year Sum By Medium $(000) Percent $(000) Percent $(000) Percent Magazines 31,546.2 34.37% 31,241.2 28.59% 62,787.4 31.32% Cable TV 23,195.8 25.27% 26,304.9 24.07% 49,500.7 23.91% Network TV 18,214.8 19.84% 25,980.4 23.77% 44,195.2 21.34% Internet Display 1,509.9 1.65% 3,249.5 2.97% 4,759.4 2.30% Spot TV 2,835.6 3.09% 1,853.6 1.70% 4,689.2 2.26% National Spot Radio 316.3 0.34% 1403.7 1.28% 1,720.0 0.83% Newspapers 72.4 0.08% 34.3 0.03% 106.7 0.05% Local Radio 6.1 0.01% 27.7 0.03% 33.8 0.02% Outdoor 5.0 0.01% 15.4 0.01% 20.4 0.01%

Budget spending by medium indicated an emphasis on visual imagery (Kantar Media): • The category spend almost a third of the average budget on magazine advertising. • Nabisco (Mondelez International) brands like OREO and Chips Ahoy held a staggering 80.8% of Network television advertising in 2011 (approximately $21 of $26 million category total). o The stronghold of these brands on television advertising has pushed smaller brands with smaller media budgets into other mediums. o With 40.9% share-of-voice of magazine spending, Pepperidge Farm actually exceeded the cookie giant Nabisco (36.1%). • One clear area for improvement for Pepperidge Farm is in Internet display. Milano was the only Pepperidge Farm brand advertised online in 2011 with a puny 0.06% SOV. Brands like OREO dominated display advertising and even more so in social media.

"#$!%&'()!"*'+,-!./0.!(&123#$4!&2!&*&546*'22'27!3&89&'72!! :2!+:3'&(!8$4'&!;:5!,#$!3::<'$’+!=>>,#!?'5,#4&)@!

! 11 Social Media Presence by Brand (Frank, 2013)

Social media presence indicates potential for further engagement with consumers. • Pepperidge Farm has lowest share of voice on social media along with lowest total mentions for top sites. • Despite low share of voice and mentions, Pepperidge Farm has a respectable number of likes on Facebook along with a strong Kred Influence score due to high Twitter activity. • Data indicates that consumers are engaging with the brand but there is much room for improvement to become more relevant online. • This situation is identified as an opportunity for Pepperidge Farm to gain potential consumers through the use of social media.

! 12 Media Objectives, Strategies and Rationales

Target Audience Objective: Introduce the TimTam brand to modern, cultured women age 25-49 with the goal of spurring trial sales and making the Pepperidge Farm brand more competitive overall.

Demographics Primary Target Secondary Target Gender Female Age 25-49 25-34 County Size County size A Education High school Graduate College Graduate Income >$30,000 >$50,000 Marital Status Any Single Employment Mostly Professional/Technical, Office and Administrative Generally busy, on-the-go media consumer, live near a Lifestyle metropolitan area, independent, socially active, regular user of public transportation

Lifestyle Statements vs. Target Audience SIMMONS Index Primary: 142 I like to change brands often for the sake of variety/novelty Secondary: 133 Primary: 110 I enjoy eating foreign foods Secondary: 121 Primary: 112 I like to try new things no one else has Secondary: 116 Primary: 136 I like the idea of traveling abroad Secondary: 126 Primary: 125 Refined, gracious, sophisticated, dignified Secondary: 132 Primary: 106 Money is the best measure of success Secondary: 146 16 or more packages of cookies of ready to eat cookies in last Primary: 128 30 days Secondary: 102 Primary: 123 I want to get to the top of my career Secondary: 163 Primary: 121 I often read ads in magazines out of curiosity Secondary: 108 Primary: 216 User of public transportation Secondary: 149 Primary: 141 Socializing between 8PM-12AM Secondary: 125* Primary: 93 Work Centered Scale: 5= Far Above Average Secondary: 156

! 13 Target Persona:

Cassandra Johnson is a 29-year-old single woman living in White Plains, New York with her roommates Sarah and Lauren. After graduating from Boston University, she moved to New York City with her roommate from university. After a few years of living in the Lower East Side, she decided to move out of New York City as she found herself being distracted and too expensive. She moved to White Plains with some school friends and commutes back into the city to work using the Metro North Railroad.

She is employed at a Public Relations firm in New York City representing artists and musicians making $58,000 a year and is striving for a promotion that will earn her a decent raise. In between traveling with her clients and working in the office, she often finds herself spending her free time hanging out with her friends and exploring new parts of New York City. Cassandra and her friends are usually trying out new restaurants, cafes, and bars all over the city.

Cassandra is a fairly health conscious person, she regularly goes to the gym with her friends and eats well. She taught herself how to cook while living in Boston during her undergraduate years and has gained a passion and interest in cooking. However, she does believe in treating herself with something indulgent every now and then. She doesn’t like eating mass quantities of snacks, because she would much rather have a couple pieces of something sweet and rich and really enjoying the treat rather than eating tons of junk. In the future, Cassandra sees herself settling down but is still driven to move forward in her career. She misses living in the city and is working hard to earn the raise so she can afford to live comfortably in the city.

Rationale – Target Audience:

An initial cross tabulation of SIMMONS demographic, psychographic, and cookie consumption data resulted in two target audiences. While the primary audience is more broad, the secondary target is more detailed in psychographic segmentation. Considering the features of TimTam that differentiate it from competition – foreign roots, cult-like following, indulgent texture – this demographic/psychographic focus makes sense for several reasons:

• Busy, aspirational young women can find solace in the indulgence of a TimTam at the end of the day. A simple Oreo or Chips Ahoy! crumbly cookie simply does not satisfy like a TimTam. • More cultured and urbanite consumers can better appreciate the international prestige of Australia’s favorite biscuit. Although doused in chocolate and loaded with sugar, TimTam is perceived to be more sophisticated than basic American-style cookies like Fudge Shoppe. • Members of these target audiences tend to be more open to trying new things, living new experiences, and are therefore prime targets for a new product launch. Because many Americans have not heard of the brand or had a TimTam before, attracting brand ambassadors early in the launch is ideal for Pepperidge Farm. • A focus on members of County Size A will allow for a media plan that is effective in spot media spending, a large number of the target will be reached.

! 14 Target Media Mix Objective: Use a balanced blend of new and traditional media to reach a modern target: Internet display and women’s magazines, supported by transit ads and drive time radio in 7 spot markets.

Strategy: The target audience is constantly on the go, and therefore TimTam advertising requires a media plan that will allow them to be reached accordingly. Many media selections are focused on the modern commuter, and all selections are portable media, a decision made clear by the absence of television (almost) completely. Additional spot budget in 7 markets aims to boost winter sales of Pepperidge Farm with holiday themed campaigns (and sales promotions), with R/F levels as high as 90/5.0 among women 25-49.

Because the TimTam launch will introduce the brand to Americans who have never tasted the cookie, spurring trial is an extra consideration threaded throughout the media mix objectives.

Media Mix Strategy: 7 Media Types, 7 Spot Markets ! National Media Raise general awareness of brand launch with targeted reach While women 25-34 are more likely to live in a city, the older half Network Radio: of the target is likely commuting into work from the suburbs or the town over. Morning and evening radio will aim to raise general Drive Time awareness of the TimTam release and influence top-of-mind purchase during the weekly evening trip to the grocery store. Not only is the target very receptive to magazine advertising, but Print: print ads with wisely-written copy can speak to the emotional Women’s appeal of indulging in a TimTam at the end of a long day. Sexy, Magazines high quality, color ads will describe the decadence and luxury that the target feels she deserves. Pepperidge Farm is well behind its competitors in terms of internet Internet: presence and social media share-of-voice. Paid social media promotions will not only raise awareness of the brand in the US, Paid Social Media but allow a community of TimTam fanatics to start an organic conversation about the brand launch. Well-placed internet advertising will allow target consumers to Internet: actively discover the TimTam brand for themselves. By running Targeted Sites copy in digital format, banner ads will also coincide with ongoing social media efforts and contribute to word of mouth sharing. ! ! ! !

! 15 Build on national plan with increased frequency and extra Spot Media attention to sales promotions 30-second television commercials in 7 spot markets will cross- promote the “TimTam Home for the Holidays”, a fan contest with Spot TV: a chance to win an all-expense paid trip to Australia, the homeland of the beloved biscuit treat. Along with spot radio, targeted cable Cable commercials will aim to connect TimTam with a cultured, sophisticated target psychographic on appropriate cable programming. Similar to the national radio strategy, spot commercials during Spot Radio: drive time will aim to add frequency by reaching daily commuters. Entertaining and Australian-inspired radio spots will aim to give a Drive Time fading Pepperidge Farm brand a spark in spot markets with comparatively low BDIs. Transit advertisements on buses, taxis and out-of-home fixtures Outdoor: will aim to reach the target on the go. Starting in September and Transit / Urban throughout the gloomy winter, outdoor ads will remind the target that indulgence in just a 20-minute subway ride away.

Rationale – Overview of Media Usage

Target Media Usage Primary Target Secondary Target Quintiles (Heavy) I II I II Radio Drive Time 127 118 141 74 Radio All Day 119 105 144 82 TV Prime Time 97 97 108* 56* TV Early/Late 93 74 77* 69* Outdoor 110 107 84 98* Internet at Home 135 113 149 116* Internet at Work 165 147 87** 77** Newspapers last 30 days? “Yes”: 96 “Yes”: 85 Magazines last 30 days? “Yes”: 106 “Yes”: 88 *use with caution, smaller than ideal sample size. All indices from SIMMONS

! 16 National Media Rationales

Note: SIMMONS Indices for Primary and Secondary Targets exclude Income, Education and Employment filters in order to get workable sample. Discussed as necessary in specific rationales. Primary + Food indices include “Any Agree: I like to try out new food products” Primary + Top 50 DMA means an geographic filter was added to analysis (for spot rationales)

Rationale – Network Radio: Morning & Evening Drive Times

Target Audience Relationship with Radio SIMMONS Index Primary: 116 Attitudes (Media) - Any Agree: I Listen To The Radio Every Day Secondary: 106 Attitudes (Media) - Any Agree: Primary: 110 When In The Car, I Always Listen To The Radio Secondary: 95 Attitudes (Media) - Any Agree: Primary: 110 Radio Is My Main Source of Entertainment Secondary: 108 Attitudes (Media) - Any Agree: Primary: 119 I Remember Advertised Products When I Am Shopping Secondary: 118 Radio Listening – Cumulative Audience: Primary: 117 M-F Combined Drive Time Secondary: 101 Radio Listening – Cumulative Audience: Primary: 124 3PM – 7PM (Evening) Secondary: 110 Radio Listening – Cumulative Audience: Primary: 122 7PM – Midnight (Late Evening) Secondary: 142

Additional support for media decision: • 4/6 respondents on Personal Media Network grids indicated that they listened to traditional radio on a weekday. • Consumer aperture: Both target audience groups have an above average index for agreeing with “I remember advertised products when I am shopping” (119, 118). Therefore, TimTam radio advertisements present an opportunity to reach consumers on their way to the store after a long day at work. • Seasonal spikes in network radio GRPs occur in the colder months of December and January when traveling in a car is most necessary.

Network Radio: Recommendations SIMMONS Index Primary: 163 Radio Format – Alternative – Cumulative Audience Total Primary + Food: 163 Secondary: 271* Primary: 245 Radio Format – HOT AC – Cumulative Audience Total Primary + Food: 281 Secondary: 197* Primary: 211 Radio Format – Urban AC – Cumulative Audience Total Primary + Food: 216 Secondary: 273**

! 17 Recommendations explained: • As a tasty biscuit treat covered in chocolate, the TimTam is appealing to a wide mainstream audience. Therefore, a mainstream taste in music will allow for greater reach. • Because both primary and secondary target audiences reside in county size A, there is a greater likelihood of living close to a major city. The Urban AC format will appeal to this audience as popular music culture and tastes permeates out from urban areas.

Rationale – Print: Women’s Magazines

Target Audience Relationship with Magazines SIMMONS Index Primary: 144 Attitudes (Media) - Any Agree: I Cannot Resist Buying Magazines Secondary: 133* Primary: 130 Attitudes (Media) - Any Agree: I Enjoy Reading Ads in Magazines Secondary: 108 Attitudes (Media) - Any Agree: Primary: 121 I Often Read Ads in Magazines Just Out of Curiosity Secondary: 108 Primary: 174 Publication Types – Gross Readers: Women’s Secondary: 148 Publication Types – Gross Readers: Primary: 272 Women’s Fashion, Beauty & Grooming Secondary: 283 Primary: 169 Publication Types – Gross Readers: Entertainment Secondary: 189 Primary: 107 Magazine Involvement: 5 – Far Above Average Secondary: 157

Additional support for media decision: • Magazine advertisements garner high attention levels as compared to other forms of media. Well written copy can both engage readers and introduce the TimTam brand for those who have never heard of the biscuit before. • Creative opportunities to engage with the target individually: Because of the brand positioning of TimTam as an indulgent treat at the end of the day, advertisements can speak directly to the target, claiming to understand she has had a long day and could use a reward. • With the remainder of the national media budget going to fleeting ad mediums (radio, internet), magazine spending will add permanence for TimTam due to a long shelf life. • 3/6 respondents on Personal Media Network grids indicated that they read a magazine during the weekend.

Women’s Magazines: Recommendations SIMMONS Index Primary: 320 Magazines – Read/Look Into Last 6 Months: Glamour Primary + Food: 417 Secondary: 299

! 18 Primary: 272 Magazines – Average Issue Audience: Allure Primary + Food: 322 Secondary: 450* Primary: 259 Magazines – Read/Look Into Last 6 Months: Elle Primary + Food: 336 Secondary: 419* Primary: 239 Magazines – Read/Look Into Last 6 Months: US Weekly Primary + Food: 250 Secondary: 324

Recommendations explained: • In order to narrow in on a select group of magazine recommendations, the “I like to try new foods” filter was applied. • Allure magazine is a trust leader in the beauty magazine segment, including announcing annual “Best of Beauty” award winners on Allure.com. Because the secondary target audience has a high magazine involvement index, advertising in Allure’s pages presents an opportunity for TimTam to reach a younger, engaged audience. The luxury and indulgence of TimTam biscuits can be creatively displayed, aligning the perception of the brand with implied image aspirations of the reader.

Rationale – Internet: Social Media

• 100% (6/6) respondents on Personal Media Network grids indicated that they used social media during both weekdays and weekends. • According to a Mintel report on Social Networking (Hulkower, 2013): o 38% of adults 25-34 ‘any agree’ – “I like to follow my favorite brands or companies or social networking websites” o 87% of adults 25-34 follow companies or brands on social networks 80% of adults 35-44 follow companies or brands on social networks o “I try to avoid interacting with brands as much as possible on social networking sites” – adults 25-34 (21%) and adults 35-44 (19%) are well below the average (25%) that agreed with this statement. ! This finding shows that the target audience age group is receptive to having legitimate interaction on social media with brands like TimTam and Pepperidge Farm. • Percentage of Twitter users by age group (Centris data via SRDS): o 18% are ages 25-34 o 22% are ages 35-44 • Competitors in the social media sphere, most notably Oreo, are overshadowing the Pepperidge Farm brand (refer to the situational analysis for a social media SOV breakdown).

! 19 Social Media: Recommendations SIMMONS Index Primary: 152 Web Sites Used/Visited Last 30 Days: LinkedIn.com Secondary: 81** Primary: 133 Web Sites Used/Visited Last 30 Days: Twitter.com Secondary: 364* Primary: 151 Web Sites Used/Visited Last 30 Days: Facebook.com Secondary: 173

Recommendations explained: • Facebook is a fantastic opportunity for Pepperidge Farm to raise awareness among the primary demographic in a relatively low cost way. Posts can be targeted and boosted based on budget restrictions and scheduling, adding flexibility into the media plan. • Twitter will be used to generate buzz among the younger half of the target through quirky interaction with fans and the “TimTam Home for the Holidays” promotion. Both long-time loyalists and new fans will produce thousands of earned impressions through retweets and mentions. • While radio, magazine and outdoor all have rigid publication schedules, social media will enable TimTam to have a consistent voice in the marketplace and to fill gaps in a highly seasonal media plan.

Rationale – Internet: Targeted Sites (Banner Ads)

Target Audience Relationship with Internet SIMMONS Index Internet Activity Scale: Primary: 142 5 = Far Above Average Secondary: 147 Primary: 142 Banner Ads – Do You Click?: Very Often Secondary: 260** Primary: 178 Banner Ads – Do You Click?: Often Secondary: 277**

Targeted Sites: Recommendations SIMMONS Index Primary: 154 Web Sites Used/Visited Last 30 Days: Travelocity.com Primary + Food: 141* Secondary: 120** Primary: 164 Web Sites Used/Visited Last 30 Days: Expedia.com Primary + Food: 126 Secondary: 128** Primary: 181 Web Sites Used/Visited Last 30 Days: FoodNetwork.com Primary + Food: 202 Secondary: 166** Primary: 443 Web Sites Used/Visited Last 30 Days: EVite.com Primary + Food: 474 Secondary: 361**

! 20 Recommendations explained: • Web sites like Travelocity and Expedia have a direct link to a more cultured target audience, one who has likely traveled overseas and maybe even had a TimTam before. Americans who are passionate about the biscuit but unaware of the US launch will jump for joy as they book their plane tickets: more space in their suitcase for clothing and less space reserved for smuggling TimTams home. • Placing banner ads on the foodnetwork.com presents an opportunity to boost sales through recipes that include TimTam cookies. Visitors to the web site are likely looking for cooking tips or recipes, and a delicious chocolate TimTam dessert banner is a way to both raise awareness and drive sales. • Both primary and secondary targets indexed higher for Internet media usage than any other medium. Category competitors like Oreo have proved that online engagement can in fact drive real results, and Pepperidge Farm is in dire need of catching up.

! 21 Spot Media Rationales

Rationale – Television: Spot Cable • The target audiences are fond of cable versus network television programming: Any agree to “If I couldn’t have cable, I wouldn’t watch television” (SIMMONS): o Primary Target: Index of 113 o Secondary Target: Index of 123 • Overall television usage was very flat among the target segments, resulting in just two months of spot cable as the only television choices for the media plan. The 30-second spots will be used to position TimTam in consumers’ minds as the holidays draw near, families gather together and cookies are put out on the counter. In terms of creative, spots could tell viewers how to “treat themselves to something nice” for the holiday season, aligning with concept of indulgence • Whether or not the viewer is social media-savvy or not, or even in the target audience, moving picture and copy will aim to raise overall brand awareness among 16.3% of all American household audiences.

Spot Cable Television: Network Recommendations SIMMONS Index Primary: 156 Cable – Viewed in Last 7 Days: Oxygen Primary + Food: 157 Secondary: 118* Primary: 178 Cable – Viewed in Last 7 Days: E! Entertainment Primary + Food: 200 Secondary: 189* Primary: 159 Cable – Viewed in Last 7 Days: Bravo Primary + Food: 169 Secondary: 209 Primary: 156 Cable – Viewed in Last 7 Days: BET Secondary: 371* Primary: 154 Cable – Viewed in Last 7 Days: TLC Primary + Food: 159 Secondary: 192

Spot Cable Television: Program Recommendations SIMMONS Index Primary: 252 Cable – Viewed in Last 7 Days: Primary + Food: 255 Real Housewives of New Jersey (Bravo) Secondary: 489* Primary: 215 Cable – Viewed in Last 7 Days: Primary + Food: 220 Keeping Up With The Kardashians (E!) Secondary: 341* Primary: 193 Cable – Viewed in Last 7 Days: Primary + Food: 157 Cake Boss (TLC) Secondary: 310*

! 22 Recommendations Details: • Less-than-classy or “guilty pleasure” cable programming can be used to align TimTam with indulgence. • Cake Boss (TLC) is an obvious recommendation, as viewers who enjoy desserts and cakes will drool over a moving picture of a TimTam biscuit. • These programs have strong indices, particularly with the inclusion of “I like to try new foods” agreement. The characters of the show are constantly dining and indulging in alcohol and desserts, setting the stage for a mouth-watering TimTam advertisement.

Rationale – Spot Radio: Morning & Evening Drive Times

Please refer to the SIMMONS quantitative indices for media attitudes towards radio and other national support for radio media selection. Most statements, if not all, are applicable to spot radio ad well. Recommendations are the same as network formats despite the inclusion of top 50 DMAs in indices calculations (see below).

Spot Radio: Recommendations SIMMONS Index Primary: 163 Radio Format – Alternative – Cumulative Audience Total Primary + Top 50 DMA: 165 Primary: 245 Radio Format – HOT AC – Cumulative Audience Total Primary + Top 50 DMA: 248 Primary: 211 Radio Format – Urban AC – Cumulative Audience Total Primary + Top 50 DMA: 209

Rationale – Outdoor: Transit & Urban Out-of-Home

Target Audience Relationship with Outdoor & Transit SIMMONS Index Attitudes (Media) - Any Agree: Primary: 143 I Often Notice Advertisements At Bus Stops Secondary: 175 Primary: 155 Attitudes (Media) - Any Agree: I Often Notice The Ads On Trains Secondary: 158 Primary: 138 Attitudes (Media) - Any Agree: I Often Notice The Ads On Buses Secondary: 155 Primary: 152 Attitudes (Media) - Any Agree: I Often Notice The Ads On Taxis Secondary: 179 Primary: 187 Ad Reception – Buses – Attention Paid: A Lot Secondary: 327* Primary: 165 Ad Reception – Subway Trains or Platforms – Attention Paid: A Lot Secondary: 238*

Outdoor: Recommendations Showing Cost Bus Stop Shelters 25 $9,440 Taxis 25 $23,500

! 23 Recommendations explained: • Bus shelter cost estimates are for the NY-NJ metro area (AR James Media Inc. via SRDS) • Taxi advertising rates are for Washington D.C. metro area (Pure Advertising LLC via SRDS) • The target audience is likely commuting to and from work five days a week. Those who live in cities will use public transit several times a day, and are often idly waiting around from the bus or watching taxis whiz by them on the street corner. These formats provide an opportunity to grab the target’s attention and announce the TimTam product launch loud and clear starting in September.

! 24 Reach/Frequency Objective: Given the introduction of the TimTam brand in the United States, media spending will aim to emphasize reach overall (65.0 to 90) and boost both reach and frequency during key winter months. Combined national and spot will peak at 90/5 in December and January.

Goals Estimated Month Reach Frequency Reach Frequency August 65.0 2.5 68.7 2.4 September 75.0 3.5 80.0* 3.0* October 80.0 4.0 83.5* 3.5* November 85.0 4.0 84.6* 3.7* December 90.0 5.0 89.7* 4.7* January 90.0 5.0 89.7* 4.7* February 85.0 4.0 84.5* 3.7* March 65.0 2.5 75.5* 2.7* April 65.0 2.5 69.3 2.3 May 0.0 0.0 0.0 0.0 June 0.0 0.0 0.0 0.0 July 0.0 0.0 0.0 0.0 * = months with 25 showing of outdoor, NOT included in Estimated R/F calculations.

Ostrow Model To determine the effective frequency for the campaign, the Ostrow Model was utilized:

Marketing Factors That Affect Effective Frequency Established Brands -.2 -.1 +.1 +.2 New Brands High Market Share -.2 -.1 +.1 +.2 Low Market Share Dominant Brand in Market -.2 -.1 +.1 +.2 Smaller, less well-known brands High Brand Loyalty -.2 -.1 +.1 +.2 Low Brand Loyalty Short purchase cycle Long Purchase Cycle -.2 -.1 +.1 +.2 (high volume segments) Product used occasionally -.2 -.1 +.1 +.2 Product used daily +.1 +.2 Needed to beat competition Advertising to older consumers, or +.1 +.2 children

Copy Factors that Affect Effective Frequency Simple copy -.2 -.1 +.1 +.2 Complex copy Copy more unusual than Copy less unusual than -.2 -.1 +.1 +.2 competition competition Continuing campaign -.2 -.1 +.1 +.2 New copy campaign Product sell copy -.2 -.1 +.1 +.2 Image type copy

! 25 Single kind of message -.2 -.1 +.1 +.2 More different kinds of messages To avoid wearout: New -.2 -.1 +.1 +.2 Older messages messages Larger ad units -.2 -.1 +.1 +.2 Small ad units

Media Factors That Affect Effective Frequency Lower ad clutter -.2 -.1 +.1 +.2 High ad clutter Compatible editorial -.2 -.1 +.1 +.2 Incompatible environment environment Attentiveness high -.2 -.1 +.1 +.2 Attentiveness low Continuous advertising -.2 -.1 +.1 +.2 Pulsed or flighted advertising Few media used -.2 -.1 +.1 +.2 Many media used Opportunities for media -.2 -.1 +.1 +.2 Fewer opportunities repetition

Effective Frequency for TimTam: 3.0 +.1 = 3.1

! 26 Media Budget Objective: 72.5% of the media budget will be spent in national media with an emphasis on Internet, and the remaining 27.5% will be spent in 7 high-opportunity spot markets.

Notes: • No media budget will be spent during May, June or July • No spot media will be purchased during August or April, the ramp up periods • All national media types run from August to April with the exception of network radio which ends in February. • Spot Cable will only run in December and January • Sales Promotions will take place in November and December as peak R/F months.

National Media $ Amount National % Cumulative % Net Radio – Morning Drive $1,081,700 8.3% 6.0% Net Radio – Evening Drive 728,500 5.5% 4.0% Magazines – Women’s 3,546,300 27.2% 19.7% Internet – Paid Social Media 3,090,000 23.7% 17.2% Internet – Targeted Sites 4,320,000 33.1% 24.0% “TimTam Home for the Holidays” 40,000 0.3% 0.2% National Contingency 250,000 1.9% 1.4% National Total $13,056,500 100.0% 72.5% ! Spot Media $ Amount Spot % Cumulative % Spot Cable $484,300 9.8 2.7% Spot Radio-Morning Drive $1,106,800 22.5 6.2% Spot Radio-Evening Drive $701,500 14.2 3.9% Outdoor $2,427,600 49.3 13.5% Sampling Promotion $100,000 2.0 0.6% Spot Contingency $107,200 2.2 0.6% Spot Total $4,927,400 100.0% 27.5% ! Gross Total $17,983,900 ! Rationale for Media Budget: With a new brand launch comes new media spending habits. Pepperidge Farm has been losing the advertising war among cookie manufacturers in recent years. With more than 50% of the national budget going to internet advertising and social media, TimTam can launch the brand back into the spotlight in a digital age.

The majority of the budget will go to obtaining a base reach across the nation to introduce consumers to the TimTam brand and induce trial. The remaining 27.5% of the budget will be allocated to some of the most opportunistic markets in the country. In all the markets but one (Washington D.C.), Pepperidge Farm has a tremendous opportunity to

! 27 regain market share in high volume cities. Through strong outdoor transit placements, the considerable spot budget will seek to compliment broader social media efforts to grow buzz over beloved TimTams in major cities and beyond. While Internet budget and presence will maintain the Pepperidge Farm name in the conversation consistently, spot heavy-up months like December and January will aim to push sales volume.

TimTam should use this budget split to follow the lead of category leader Oreo, who has realized tremendous success through the combination of social, print and guerilla advertising. TimTam has an extremely passionate brand following back home in Australia and should try to recreate the community in the US.

Spot Budget Breakdown by Market: The 7 spot markets below represent 45,259,863 Americans, led by New York and Chicago which rank first and third in city population size respectively. % of Total No. Spot Markets Population % Allocated Spot Pop New York-Northern New Jersey- 1 18,897,109 41.8% $2,057,311.02 Long Island, NY-NJ-PA 3 Chicago-Joliet-Naperville, IL-IN-WI 9,461,105 20.9% $1,030,021.87 Washington-Arlington-Alexandria, 7 5,582,170 12.3% $607,725.76 DC-VA-MD-WV 15 Seattle-Tacoma-Bellevue, WA 3,439,809 7.6% $374,488.87 18 St. Louis, MO-IL 2,812,896 6.2% $306,237.42 20 Baltimore-Towson, MD 2,710,489 6.0% $295,088.46 22 Pittsburgh, PA 2,356,285 5.2% $256,526.60 Total 45,259,863 100.0% $4,927,400.00

Demographic ranking information from the BUDDY database indicate a large number of target audience members are located in these markets as well. Washington bumped up from 7th in the census rankings to 5th in the concentration rankings of females aged 25-34.

Rank CBSA Name Population, Females Aged 25 to 34 Years 1 New York-Newark-Jersey City, NY-NJ-PA 1,453,541 3 Chicago-Naperville-Elgin, IL-IN-WI 700,528 5 Washington-Arlington-Alexandria, DC-VA-MD- 471,804 WV 14 Seattle-Tacoma-Bellevue, WA 272,901 19 Baltimore-Columbia-Towson, MD 193,627 20 St. Louis, MO-IL 191,456 31 Pittsburgh, PA 140,894 Source: Buddy Demographic Database via 4A’s (www.aaaa.org)

! 28

• Rationale for omitting summer months of May-July o Because of the high chocolate content in TimTam biscuits, summer months are not ideal for consumption due to melting. Furthermore, as discussed throughout, TimTam cookies pair nicely with a warm drink and therefore are better fit for cold winter months. o As shown in greater length in the Schedule/Timing rationale, category advertising spending is very high in the summer months. Rather than try to fight the goliath Mondelez Co. to get TimTam noticed, Pepperidge Farms should just cut losses and save media spend for the holiday push.

! 29 Geography Objective: TimTam will run a national campaign with spot-heavy up in 7 markets based on CDI-BDI ratio, high population of our target, seasonality, its urban environment, and is a top-30 market by population.

The 7 selected spot markets represent 16.34% of the total US population: Seattle, Pittsburgh, St. Louis, Chicago, Baltimore, Washington D.C., and New York.

Geography plays a crucial role since our target is located in a specific type of environment. Those who have an on-the-go lifestyle with professional careers are most likely living in or near an urban area. Alongside a national campaign, particular spot market advertising will help gain brand awareness in an industry that is already mature with household brand names. The chosen spot markets are also areas with cold winters and notably seasonality. TimTam is an indulgent treat often enjoyed with a hot beverage, something that is associated with cold weather and seasonal changes, presenting an opportunity to boost consumption and sales in these markets.

Because TimTam and Pepperidge Farm are underdogs in a competitive marketplace, an offensive strategy should be adopted in order to compete with major players of the industry such as Oreo or Chips Ahoy!. Given that the industry is in its mature stage (Frank 2013), an offensive strategy that raises brand awareness in the correct market is crucial in the success of reaching objectives.

! 30 Rationale

The TimTam national campaign will target our audience throughout the nation however the spot-heavy up campaigns will target our audience where they are most populated. CDI and BDI were calculated using US Census data along side category and brand spending. The particular markets chosen also show higher CDIs than BDIs (with the exception of Washington D.C.), which indicates an opportunity for an offensive strategy in order to create more brand awareness. Washington D.C. indicates extremely high brand presence and is therefore a market well-suited for introducing a new product under a trusted brand name umbrella.

The following chart of CDI/BDI indices was compiled using both US Census Data and category and brand sales. Strategy for Pepperidge Farm in relation to competitive spending is suggested in broad cases.

No. Spot Markets CDI BDI Strategy 1 New York-Northern New Jersey-Long Try to edge out tight 234 210 Island, NY-NJ-PA competition 3 Chicago-Joliet-Naperville, IL-IN-WI 156 98 Room for growth 7 Washington-Arlington-Alexandria, Protect key market, retain 89 200 DC-VA-MD-WV loyalty, defensive 15 Room for brand growth, Seattle-Tacoma-Bellevue, WA 119 66 run promotions here 18 St. Louis, MO-IL 129 71 Try to steal market share 20 Baltimore-Towson, MD 129 71 Try to steal market share 22 Aggressively go after Pittsburgh, PA 142 78 market share

SIMMONS information also shows both primary and secondary targets with high indices in the Top 50 Designated Marketing Areas. All the chosen markets for spot advertising are in the Top 50 Designated Marketing areas, including three that are in the top 10.

Additionally, the some of the specific spot markets chosen are major international tourist attractions. Chinese and Brazilian tourists spend an average of $6,000 per visit with an increase of 274% in Chinese tourists between 2012 and 2016 (Faries, 2013). The United States being the second most visited nation in the world by foreigners means that the buying power of tourists increases every year (World Tourism Barometer 2011). The familiarity of TimTam is potentially higher with tourists as is important to be in markets that tourists will be in.

! 31 Scheduling/Timing Objective: Highest reach/frequency levels reached during winter months, specifically December and January. No media purchased for 3 summer months (May- July). All mediums (except Spot Cable) gradually ramp up towards the holiday season push and then decline as spring begins.

Strategy:

To take advantage of market, TimTam will advertise heavily in the holiday season to maximize reach towards the audience when cookie sales are the highest. The campaign will run continuously from August to April, varying in focus in and out of peak seasons. Since TimTam is associated with hot beverages due to the “Slam” eating method, it is appropriate to have heavy presence in months that are colder. This is also the reason TimTam will not be advertised during the warmer months of May, June, and July. However, the advertising begins in September to correlate with back to school season when cookie purchases increase (Newell 2013, p.5)

Rationale:

Currently, the category sees low advertising spending in the months of November, December, and January. Assuming that the major players in the industry such as Nabisco and Keebler already assume that these months are months of high sales regardless of advertising, they do not engage in the same amount of advertising as TimTam. Figures below show that there is significantly less spending during these months (Kantar Media).

Opportunity: Category Ad Spending by Month Month 2010 2011 Average January 2.48% 2.61% 2.54% November 1.49% 1.77% 1.63% December 0.27% 0.43% 0.35% All Other Months Average 4.60% 5.50% 5.05%

TimTam being an underdog can use this time to trigger branding by advertising during times of high sales. As it is difficult to compete with the major players during their times of major advertising, TimTam’s scheduling will occur heavily in times when other brands are absent as seen in the graph below (Kantar Media and Media Flight Plan).

! 32

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By having presence when other brands do not, this allows for increase in share of voice and the ability to capture the market when cookie sales are typically above average. In addition,!"#$%&!'(%!&#)!'&*!$#(%!+,-%+*!)#!.+'&!)/%!.0(1/'2%!#3!1##-,%2!#(!-&#"! "/')!1##-,%2!)/%*!",++!40*!4%3#(%!)/%*!%&)%(!)/%!2)#(%!56('&-!789:;,1')%2! )/')!1##-,%!40*,&?!1'&!4%!'&!,$.0+2%!.0(1/'2%!3#(!"#$'&!56('&-!789:;@! /,?/+,?/),&?!)/%!A'+0%!#3!'!+'(?%(!BCD!>0(,&?!",&)%(!1#&20$.),#&!$#&)/2!$%>,0$!$,F!,2!4(#'>+*!.#()'4+%@!,)!,&1(%'2%2!)/%!1/'&1%2! 3#(!'!.%(2#&!)#!4%!%F.#2%>!)#!)/%!'>A%(),2,&?!"/%&!)/%*!'(%!%,)/%(!#&!)/%!"'*!)#!)/%! ?(#1%(,%2!#(!"/%&!)/%*!'(%!%A%&!,&!)/%!2)#(%!,)2%+3

! 33 Sales Promotion Objective Nationwide social media contest will span the months of November- December with the aim of generating social media buzz alongside TimTam holiday campaign efforts (biggest spend of the year). Sampling promotions in 3 spot markets are designed to stimulate trial use.

“TimTam Home for the Holidays”

Utilizing social media budget, TimTam will plan, promote, and conduct a contest that will ask TimTam fans to submit their most creative use of the chocolaty treat. Whether it is a new recipe, method of eating a TimTam, or even a combination of both, consumers will be invited to share their creation for a chance to win an all-inclusive trip to Australia for an entire week. The winner of the “TimTam Home for the Holidays”, along with three friends, will be flown expense-free to the home of the TimTam to explore the many attractions Australia has to offer.

The promotion will begin in November by creating social media buzz online leading up to the holiday season. It will act in conjunction with the spot cable advertisement airing in December. It will be a chance to win a holiday gift for yourself.

The idea behind this promotion is to give insight into the origin of TimTam and revealing the foreign allure that the product has. In addition, it will enlighten consumers on the cult following TimTam has with the different methods of eating one and the love it has from those who have enjoyed them for decades.

The cost for this particular promotion includes the production of a promotional video and the expenses for the winning trip. The promotional video will solely be released online through social media in order to cut costs and potentially create a viral buzz while increasing sales.

Estimated “TimTam Home for the Holidays” Promotion Cost Flight $2,500 x 4 winners = $10,000 Lodging $1,000 x 7 days = $7,000 Stipend for FUN $1,500 x 4 winners = $6,000 Video Production $10,000 Estimated Cost $33,000 Allocated Budget $40,000 Travel costs based on Orbitz and video production estimated through Hinge Marketing

Sampling Promotion

The simplest way for someone to try a new product is through free product sampling. An engaging way to provide free sampling is through a sales team in three of our spot markets during the holiday season. When the weather is cold and Christmas time is

! 34 around the corner, a free sample of a TimTam and hot chocolate can only make ones day better.

The three markets chosen for this promotion is New York, Chicago, and Seattle. In these markets, there will be a team representing TimTam handing out free samples along with other promotional items such as flyers and shirts in busy metropolitan areas. The team will introduce new comers to the “Slam” and hopefully help these consumers on what treat to bring to their next holiday party.

The teams will be placed in the areas with highest human traffic listed below. City Area/Street/Landmark New York City Grand Central, Midtown, Times Square, Soho, Yankee Stadium Chicago Michigan Avenue, the Bean, State Street, corner of Clark/ Broadway Seattle Pike Place Market, Space Needle, Safeco Field Answers based on Skyscraper.com

The idea behind this promotion is to engage with the product in a casual setting that gives a little educational aspect on how to enjoy a TimTam. Next time they are around the product, the consumer will share this knowledge with friends or family and spread the name of the product.

The costs related to this method is staffing the team, buying promotional goods, and paying for any license or fee to have on site promotional events.

Costs Shirts $11.15 x 3,000 shirts = $33,450 Flyers $0.06 x 9,000 flyers = $540 Wages $10.00 x 6 hours x 7 days x 30 sales associates = $12,600 Rental/Licensing $10,000 x 3 markets = $30,000 Total Estimated Cost $76,590 Allocated Budget $100,000 Shirts based on Zazzle.com, flyers based on Uprinting.com, wages based on Glassdoor.com

Rationale

Promotion is one of the few ways that a consumer or potential consumer can engage with the brand on a personal level. Whether it is through a homemade video or sampling the product on the way to work on a cold day, promotions allow the consumer to experience the product in a different scene.

The timing for these promotions are crucial as they are during peak selling seasons (Newell 2013, p.5) as well as during the heaviest activity in terms of media for the campaign. It relates back well with the target market and the buying behavior of general cookie consumers (Frank 2013) given the psychographics of our target audience and the holiday season.

! 35 Works Cited

About us. (n.d.). Retrieved December 7, 2013, from Arnott's Australia website: http://www.arnotts.com.au/our-products/products.aspx

ARNOTT’S CELEBRATES ITS TRULY, MADLY TIM TAM FANS. (n.d.). News Boost. Retrieved December 7, 2013, from http://www.newsboost.com/newsroom/campbell-arnotts/arnott-s-celebrates-its- truly-madly-tim-tam-fans

Arnott's Original Chocolate Biscuits. (2013). Cost Plus World Market. Retrieved December 5, 2013, from http://www.worldmarket.com/product/arnott's+original+chocolate+biscuits.do ! Average Wages for Sales Associates. (n.d.). Retrieved December 7, 2013, from Glassdoor website: http://www.glassdoor.com/Salaries/sales-associate- salarySRCH_KO0,15.htm ! "#$%!&'!"#()%*+!,-+.+/+!!""#$%+!0#%12#3#.!4#5#67#1!89!:;<=9!'1&6! ! >%%?@AABBB+(CC)1#+5&6A7#()%*D?1&.)5%$A7#$%D&'D7#()%*!

Busiest areas of US cities. (n.d.). Retrieved December 7, 2013, from Skyscraper City website: http://www.skyscrapercity.com/showthread.php?t=947480

CBSA Areas Ranked by: Population, Females Aged 25 to 34 Years. (n.d.). Retrieved December 7, 2013, from AAAA website: http://easidemographics.com/cgi-bin/rank.exe

Club Card Flyers. (n.d.). Retrieved December 7, 2013, from Uprinting website: http://www.uprinting.com/club-card-flyers.html

Cookies and Crackers. (2012). In L. M. Pearce (Ed.), Encyclopedia of American Industries. Detroit: Gale. Retrieved from ! http://bi.galegroup.com/essentials/article/GALE|RN2501400022/92ff4d4d1bdfebc a2a4f0ada25680673?u=nysl_ce_syr

Frank, J. (2013, March). Cookies and Cookie Bars - US. Retrieved from http://academic.mintel.com/

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! Tim Tam Media Plan Flowchart: August - July Target Demo: All Women ages 25-49 Medium Aug Sep Oct Nov Dec Jan Net Radio-Morning Drive 40 30 30 30 50 50 $(000) 163.3 122.5 122.5 122.5 204.1 204.1 Net Radio-Evening Drive 40 30 30 30 45 45 $(000) 114.3 85.7 85.7 85.7 128.6 128.6 Magazines-Womens 50 60 70 70 85 85 $(000) 281.4 337.7 394.0 394.0 478.5 478.5 Paid Social Media 12 30 30 40 40 40 $(000) 120.0 300.0 300.0 400.0 400.0 400.0 Internet-Trgtd Sites 20 37 50 55 60 60 $(000) 200.0 370.0 500.0 550.0 600.0 600.0 Spot Cable 50 50 $(000) 242.2 242.2 Spot Radio-Morning Drive 25 45 45 50 50 $(000) 98.8 177.9 177.9 197.7 197.7 Spot Radio-Evening Drive 25 40 45 45 45 $(000) 66.2 105.9 119.1 119.1 119.1 Outdoor - Transit / Urban 636 636 636 636 636 $(000) 346.8 346.8 346.8 346.8 346.8 National Only Area GRPS 162 186 209 224 279 279 $(000) 879 1215.9 1402.2 1552.2 1811.1 1811.1 Reach 68.7 74.1 76.9 78.3 82.3 82.3 Avg. Freq. 2.4 2.5 2.7 2.9 3.4 3.4 Spot Only Area GRPS 49 84 89 145 145 $(000) 511.8 630.6 643.8 905.7 905.7 Reach 26.5 34.4 35.3 54.7 54.7 Avg. Freq. 1.9 2.5 2.6 2.7 2.7 Spot + National GRPS 162 236 294 314 424 424 $(000) 879 1727.7 2032.8 2196 2716.8 2716.8 Reach 68.7 80 83.5 84.6 89.7 89.7 Avg. Freq. 2.4 3.0 3.5 3.7 4.7 4.7 Tim Tam Media Plan Flowchart: August - July Target Demo: All Women ages 25-49 Feb Mar Apr May Jun Jul Total Across 35 GRPS: 265 142.9 COST: 1081.7 35 GRPS: 255 100.0 COST: 728.5 70 70 70 GRPS: 630 394.0 394.0 394.0 COST: 3546.3 35 40 42 GRPS: 309 350.0 400.0 420.0 COST: 3090.0 50 50 50 GRPS: 432 500.0 500.0 500.0 COST: 4320.0 GRPS: 100 COST: 484.3 45 20 GRPS: 280 177.9 79.1 COST: 1106.8 45 20 GRPS: 265 119.1 52.9 COST: 701.5 636 636 GRPS: 4450 346.8 346.8 COST: 2427.6

224 159 161 GRPS: 1890 1486.9 1294 1314 Cost: 12766.5 78.2 69 69.3 2.9 2.3 2.3

89 40 GRPS: 644 643.8 478.8 Cost: 4720.2 35.3 23.4 2.6 1.7

314 199 161 GRPS: 2535 2130.7 1772.8 1314 Cost: 17486.7 84.5 75.5 69.3 3.7 2.7 2.3 Goal Sheet National Plan National Plan Reach Freq GRPs %Share Est $(000) August 65 2.5 162.5 6 1048.6 September 75 2.5 187.5 6.9 1209.9 October 70 3 210 7.7 1355.1 November 75 3 225 8.3 1451.8 December 80 3.5 280 10.3 1806.7 January 80 3.5 280 10.3 1806.7 February 75 3 225 8.3 1451.8 March 65 2.5 162.5 6 1048.6 April 65 2.5 162.5 6 1048.6 May 0 0 0 0 0 June 0 0 0 0 0 July 0 0 0 0 0 ------National Media 1895 69.9 12227.8 National Contingency 250 Total National $$ 12477.8

Spot Plan Spot Plan Reach Freq GRPs %Share Est $(000) August 65 2.5 162.5 0 0 September 75 3.5 262.5 2.8 483.9 October 80 4 320 4.1 709.8 November 85 4 340 4.2 742.1 December 90 5 450 6.3 1096.9 January 90 5 450 6.3 1096.9 February 85 4 340 4.2 742.1 March 75 3 225 2.3 403.3 April 65 2.5 162.5 0 0 May 0 0 0 0 0 June 0 0 0 0 0 July 0 0 0 0 0 ------Spot Media 818 30.1 5275 Spot Contingency 107.2 Total Spot $$ 5382.2 Total Plan 17860 Year At a Glance Reach Avg Freq GRPS $(000) Goal Est Goal Est Goal Est Balance Goal Est Balance August 65 68.7 2.5 2.4 163 162 0 1048.6 879 169.5 September 75 80 3.5 3 263 237 25 1693.8 1727.7 -33.9 October 80 83.5 4 3.5 320 295 25 2064.8 2032.8 32.1 November 85 84.6 4 3.7 340 315 25 2193.9 2196 -2.1 December 90 89.7 5 4.7 450 425 25 2903.7 2716.8 186.8 January 90 89.7 5 4.7 450 425 25 2903.7 2716.8 186.8 February 85 84.5 4 3.7 340 315 25 2193.9 2130.7 63.2 March 75 75.5 3 2.7 225 200 25 1451.8 1772.8 -321 April 65 69.3 2.5 2.3 163 162 0 1048.6 1314 -265.5 May 0 0 0 0 0 0 0 0 0 0 June 0 0 0 0 0 0 0 0 0 0 July 0 0 0 0 0 0 0 0 0 0 Total 2712.5 2536 0 17502.8 17486.7 16.1 National Contingency $(000): 250 Spot Contingency $(000): 107 Frequency Distribution National Spot Combined F F+ F F+ F F+ 0 31 100 76.6 100 24.5 100 1 26.5 69 14 23.4 23.8 75.5 2 18.7 42.6 5.3 9.4 19.5 51.6 3 11.3 23.8 2.3 4.1 13.4 32.1 4 6.2 12.5 1 1.8 8.3 18.7 5 3.2 6.3 0.5 0.8 4.8 10.4 6 1.6 3.1 0.2 0.3 2.7 5.6 7 0.8 1.5 0.1 0.1 1.4 3 8 0.4 0.7 0 0.1 0.8 1.5 9 0.2 0.3 0 0 0.4 0.8 10 0.1 0.2 0 0 0.2 0.4 11 0 0.1 0 0 0.1 0.2 12 0 0 0 0 0 0.1 13 0 0 0 0 0 0 14 0 0 0 0 0 0 15 0 0 0 0 0 0 16 0 0 0 0 0 0 17 0 0 0 0 0 0 18 0 0 0 0 0 0 19 0 0 0 0 0 0 20 0 0 0 0 0 0 Gross Rating Points 160 40 200 Reach 69 23.4 75.5 Average Frequency 2.3 1.7 2.7 Market List Market Name Rank %US St. Louis, MO 21 1.1 Seattle-Tacoma, WA 14 1.58 New York, NY 1 6.54 Pittsburgh, PA 22 1.03 Washington, DC 9 2.05 Chicago, IL 3 3.07 Baltimore, MD 24 0.97

7 Markets Chosen, covering 16.34% of US households.