TEST MARKET CAMPAIGN {Planters Peanut Butter}

TEST MARKET CAMPAIGN {planters peanut butter}

MEGAN BARTA KENSEY BURDICK CHELSEY FAGGIANO YISHA LIU MOLLY MCCUE RYAN MYERS JUSTIN RUANE MEGAN SANDERS table of contents

6 Situation Analysis 46 Recommended Test Market City 48 Campaign Objectives 50 Trade Distribution Plan 52 Sales Forecast 53 Target Market Recommendation 58 Media 66 Creative 46 Sales Promotions 48 Budget 50 Bibliography 52 Appendix

executive summary

Peanut butter is one of the most versatile staple products used in America. People cook with it, snack on it, spread it, and eat it with a spoon. With so many uses, peanut butter varieties have increased significantly since the product was first introduced in 1904.

The following plan is specifically designed to maximize awareness of the new Planters Peanut Butter in Spokane, Washington. The Planters brand, well known among consumers, will be introducing an entirely new product to the competitive peanut butter market. The product will hit the shelves of Spokane supermarkets on January 1, 2012 and includes two varieties: creamy and crunchy.

The target audience for the test market campaign has been derived through extensive primary and secondary research. A variety of select media and promotional efforts will be used throughout the test market campaign. Each of which will separate Planters from competitors, and place it high in the mind of consumers for quality peanut butter. Use of advertising and sales promotions throughout our cohesive, year-long campaign will achieve initial campaign goals and drive Planters Peanut Butter into the shopping carts of consumers.

TEST MARKET CAMPAIGN | planters peanut butter situation analysis In this section: 6 The Market 10 Competitive Position 26 The Consumer 15 Distributors 15 Advertising History 15 Sales Promotion 15 Problem: Meet Solution

1. The Market DEFINITION There are a wide variety of peanut butter products in the market place today. There are more products in today’s market due primarily to the fact that individuals are seeking healthier and more “fit” lifestyles, leaving companies almost forced to market healthier options. These different options include the creamy, chunky, extra chunky, reduced fat, all natural, organic, to-go packets, unsalted, peanut butter & jelly combinations, and many more. This report includes information and highlights in the United States market for the Planters product line extension. Planters will be introducing Planters Crunchy and Planters Chunky peanut butter, which will extend the current line of products that include a variety of nuts, seeds, mixes, bars, baking and cooking ingredients.

TEST MARKET CAMPAIGN | planters peanut butter RELEVANT MARKET (SIC) CODE consumers are becoming more aware of the economic value private label products offer. Planters new peanut butter’s Standard Industrial Classification According to Mintel, dollar sales of peanut (SIC) code is 2099. Peanut butter is classified as a “manufactured butter were estimated to have grown 27% from 2005- and kindred product”, which is specified by the first two numbers 2010, however this growth comes primarily from price of the SIC code, “20”. The next two numbers, “99”, specify even increases in 2008 as opposed to sheer volume sales, which further, which inform that Planters peanut butter are a “food were estimated to increase in 2010. In 2009, peanut preparation” item. The NAICS code is 311911. Peanut butters butter sales reached $1.06 billion in the United States. like Planters are classified as “Peanut Butter Manufacturing”. Due to a salmonella contamination in 2007-2008, MARKET SIZE & GROWTH TRENDS ConAgra Food Inc.’s Peter Pan Peanut Butter was pulled off of shelves for 6 months, resulting in a 20% decrease in sales in The peanut butter industry is dominated primarily by three FDMx. Peter Pan consumers were forced to test new brands, Jif, Skippy, different brands: Jif, Skippy, and Peter Pan. These three brands resulting in sales growths for other brands of about 4%. combined for a 52.6% market share in 2010 (Mintel, Savory and Peter Pan From 2009-2010, Peter Pan saw a 7.0% decrease in sales, and, and Sweet Spreads. “Brand Share.” US, 2010). This does not combined for according to Mintel, lost share to strong retail brands while include options such as the reduced fat, natural, or organic a 52.6% market consumers sought out replacement product at value prices products that these brands offer. Private label brands make (Mintel, Savory and Sweet Spreads. “Brand Share”. US. 2010). share in 2010. up another 20.2% of the market share, with companies such A notable growth trend outside of the three major as Wal-Mart and Safeway introducing brands of peanut butter segment leaders was from 2009-2010 where “other” brands into the market. Mintel, a marketing research company, collectively grew 22.1% in market share. This was caused describes peanut butter as a segment within the “Savory and by consumer’s exploration to trying new brands from the Sweet Spreads” market, along with other items such as butter, previous year. Factors such as price, flavor, and curiosity all honey, jams, jellies, preservatives and margarine. The key played a role in this trend. However, whether or not consumers trends in peanut butter products is that private label products stick with these products after trial still remains uncertain. have seen an increase in sales over the past couple of years, as

TEST MARKET CAMPAIGN | planters peanut butter MARKET FORECAST MARKET MAKE-UP Mintel estimated that the peanut butter sales in FDMx would reach $1.1 billion Several segments make up the peanut butter market including: “all other”, in 2010, indicating a 5.8% increase since 2009 and $240 million since 2005. creamy, crunchy, extra crunchy, all natural, reduced fat, to-go packets, and many With peanut butter being a product within the “Savory and Sweet Spreads” more. Out of these segments, the “creamy” segment has the largest market share, market, Mintel expects an annual growth of 2.5% between 2011-2015, at which when combined amongst the top three brands (Jif, Skippy, and Peter Pan) has current prices. After adjusting for inflation over this period of time, Mintel a 52.6% market share (Mintel. Savory and Sweet Spreads. “Brand Share”. US. 2010). expects the “Savory and Sweet Spreads” market to top sales of $6.7 billion in Peanut butters are sold in a variety of sizes and quantities, depending 2015 (Mintel, Savory and Sweet Spreads. “Market Size and Forecast”. US. 2010). on the brand. Conventional sizes include 16.3 oz and 28 oz., while some The rate of savory and sweet spread consumption, including peanut companies offer 80-calorie packs, and others offer 4 pound jars. According to butter, has matured for the most part. There is relatively little room for Mintel, single-serve and portion-controlled packaging may be cannibalizing growth, however, enticing consumers to trade up in price, use a wider variety existing sales within the market. Consumers are eating less per serving, of products, or increase frequency of usage for brands within the market. which lengthens the replacement cycle. However, single-serve portions Sales have remained somewhat flat, or slightly declining, with the are new within the market and must be monitored to observe trends. exception of an 8% sales jump in 2008, which was due to bad weather According to the U.S. Labor Department, the price per pound and an increased diversion of farmland for bio-fuel crops production. of creamy peanut butter cost $2.05 in August of 2011. When broken These factors caused food prices in the U.S. to spike in 2008, which down into ounces, peanut butters cost is $0.13 an ounce. However, prices resulted in the 8% growth for the savory and sweet spreads market clearly vary greatly depending on geographic region, time of year, and (Mintel, Savory and Sweet Spreads. “Market Size and Forecast”. US. 2010). place where the product is sold (U.S. Labor Department. U.S. Retail Food, Peanut butter is also considered a product within the “Healthy Energy Prices by Product for August. “Creamy Peanut Butter”. US. 2011). Snacking” market with new products such as fat free, natural, and organic peanut butters being introduced to consumers. According to Mintel, the DISTRIBUTION healthy snack foods market grew by 17% from 2003-2008, creating a market There is a great variety in people that purchase and consume peanut butter of $29.5 billion (Mintel, Healthy Snacking. “Executive Summary”. US. 2010). in the U.S. According to SMRB, or Simmons, a consumer research database, the two main US regions with the most peanut butter consumption are the geographic census region South (37%) and the other geographic census region Midwest (22.7%). The other two geographic census regions used in this database are West (22.5%) and Northeast (17.8%). The total number of people that 8 consumed peanut butter in their household is 90.7% of the total U.S. population.

TEST MARKET CAMPAIGN | planters peanut butter SIGNIFICANT TRENDS

Switch to “Other” Brands Consumers Interest Household Size and Usage A few segment leaders have dominated in Private Label According to Mintel, one-person the peanut butter market for most of Many retailers, such as Safeway households are less likely to use savory the markets history; however, there and Wal-Mart, have began offering and sweet spreads than are larger has been recent growth outside of upscale and organic/natural peanut households. One-person households these leaders. “Other” brands grew butters with an effort to entice that eat peanut butter are 7% lower collectively by 22.1% during 2009-2010, consumers to try their brand when than households of any other size. 92% according to Mintel. Consumers have they are forced to trade down from of households with two or more people shown recently to have an inclination the more expensive branded products. eat peanut butter, while only 85% of Mintel expects to try new things and less-familiar one-person households do (Mintel. brands (Mintel. Savory and Sweet Savory and Sweet Spreads. “Market an annual Spreads. “Brand Share”. US. 2010). Drivers”. US. 2010). Mintel attributes growth of 2.5% this gap to the fact that singles may between eat out or on the go more often, rather 2011-2015, at than cooking meals for themselves. current prices.

FDMx Sales & Forecast of Peanut Butter and other nut butters 2005-15 Peanut Butter Consumption 1500 94% 93% 92% 92% 92% 92% 1000 90%

1 person 88% 2 people

$ millions 500 86%

Percent 85% 3 people 84% 0 4 people 82% 5 or more people 2005 2006 2008 2009

2007 80% 1 person 2 people 3 people 4 people 5 or more people 2010 (est.) 2011 (est.) 2012 (est.) 2013 (est.) 2014 (est.) 2015 (est.)

Sales at current prices 9 Source: Mintel/based on SymphonyIRI Group InfoScan Reviews

TEST MARKET CAMPAIGN | planters peanut butter 2. Competitive Position

Peanut Butter Brand Share

13% J.M. Smucker Co. 39% Unilever 20% ConAgra Foods Inc. Private Label

8% Other 20%

Unilever J.M. Smucker Co. ConAgra Food Inc. 3% 1% 2% 2% 4% 4% Jif 9% 4% 7% Smucker's 11% Goober Skippy 7% Simply Jif Skippy Super Chunk Peter Pan Laura Scudder's Skippy Natural Peter Pan Smart Choice Adams 80% 77% Other Jif To Go Other 89% 10

TEST MARKET CAMPAIGN | planters peanut butter PRIVATE LABEL SECONDARY COMPETITION The private labels that Planter’s Peanut Butter will Secondary competitors of Planter’s Peanut Butter include compete against with the selected target market include: almond butter varieties, Nutella, and other nut butters and spreads. Another secondary competitor is Goobers Safeway Select PB & J (produced by Smucker’s). Goobers is a product that includes jelly and peanut butter within the same jar.

Safeway Organics

Great Value

Western Family

Kroger’s

TEST MARKET CAMPAIGN | planters peanut butter Serving Size Retail Price Per Total Flavor Jar Size (Table- Calories Price Ounce Varieties spoons)

Test Market Product Planters Peanut Butter (Creamy) 16.3 oz $1.98 $0.12 2 180 Planters Peanut Butter (Crunchy) 16.3 oz $1.98 $0.12 2 180 2 Planters Peanut Butter (Creamy) 28 oz $3.38 $0.12 2 180 Planters Peanut Butter (Crunchy) 28 oz $3.38 $0.12 2 180

J.M. Smucker Co. Jif (Creamy) 18 oz $3.29 $0.18 2 190 Jif (Crunchy) 18 oz $3.29 $0.18 2 190 Jif To Go (Creamy) Pack of 8 $2.69 $0.22 1 cup 250 1.5 oz cups Simply Jif (Creamy) 17.3 oz $4.79 $0.27 2 6 190 Jif Natural (Creamy) 18 oz $3.75 $0.21 2 190 Jif Reduced Fat (Creamy) 18 oz $3.75 $0.21 2 190

Adams (Creamy) 16 oz $3.29 $0.18 2 200 Adams (Crunchy) 16 oz $3.29 $0.18 2 200 Adams Unsalted (Creamy) 16 oz $3.29 $0.18 2 210 6 Adams Unsalted (Crunchy) 16 oz $3.29 $0.18 2 210 Adams No-Stir (Creamy) 16 oz $3.29 $0.18 2 210 Adams No-Stir (Crunchy) 16 oz $3.29 $0.18 2 210 12

TEST MARKET CAMPAIGN | planters peanut butter Total Total Total Fat Sodium Carbohy- Protein Vitamins/Minerals (DV) Sugar drates

Test Market Product Planters Peanut Butter (Creamy) 16.3 oz $1.98 $0.12 2 180 15 g 3 g 150 mg 8 g 8 g Planters Peanut Butter (Crunchy) 16.3 oz $1.98 $0.12 2 180 15 g 3 g 150 mg 8 g 8 g 2 Iron: 4% Planters Peanut Butter (Creamy) 28 oz $3.38 $0.12 2 180 15 g 3 g 150 mg 8 g 8 g Planters Peanut Butter (Crunchy) 28 oz $3.38 $0.12 2 180 15 g 3 g 150 mg 8 g 8 g

J.M. Smucker Co. Jif (Creamy) 18 oz $3.29 $0.18 2 190 16 g 3 g 150 mg 7 g 7 g E: 15%, Iron: 4%, Riboflavin: 2%, Jif (Crunchy) 18 oz $3.29 $0.18 2 190 16 g 3 g 130 mg 7 g 7 g Niacin: 20%, Jif To Go (Creamy) Pack of 8 4 g Iron: 4%, Riboflavin: 4%, E: 20%, $2.69 $0.22 1 cup 250 22g 200 mg 9 g 9 g 1.5 oz cups Niacin: 25% Simply Jif (Creamy) E: 15%, Iron: 4%, Riboflavin: 2%, 17.3 oz $4.79 $0.27 2 16 g 2 g 65 mg 6 g 8 g 6 190 Niacin: 20%, Calcium: 2%, Iron: 4%, Riboflavin: 2%, Jif Natural (Creamy) 16 g 3 g 80 mg 8 g 7 g 18 oz $3.75 $0.21 2 190 Niacin 20% Jif Reduced Fat (Creamy) Iron: 4%, Niacin: 25%, B6: 6%, Folic 18 oz $3.75 $0.21 2 190 12 g 4 g 250 mg 15 g 8 g Acid: 6%, Magnesium: 15%, Zinc: 6%, Copper 10% Adams (Creamy) 16 oz $3.29 $0.18 2 200 16 g 1 g 105 mg 6 g 7 g Iron: 2% Adams (Crunchy) 16 oz $3.29 $0.18 2 200 16 g 1 g 90 mg 6 g 7 g Adams Unsalted (Creamy) 16 oz $3.29 $0.18 2 210 16 g 1 g 0 mg 6 g 7 g 6 Iron: 2% Adams Unsalted (Crunchy) 16 oz $3.29 $0.18 2 210 16 g 1 g 0 mg 6 g 7 g Adams No-Stir (Creamy) 16 oz $3.29 $0.18 2 210 17 g 1 g 160 mg 6 g 7 g Iron: 2%, E: 10%, Riboflavin: 2%, Adams No-Stir (Crunchy) 16 oz $3.29 $0.18 2 210 17 g 1 g 130 mg 6 g 7 g Niacin: 20%

*These brands’ prices were taken from a Wal-Mart Super Center. All other brand 13 prices were taken from Safeway. TEST MARKET CAMPAIGN | planters peanut butter Serving Size Retail Price Per Total Flavor Jar Size (Table- Calories Price Ounce Varieties spoons)

ConAgra Peter Pan (Creamy) 16.3 oz $2.08 $0.13 2 210 Peter Pan (Crunchy) 16.3 oz $2.08 $0.13 3 2 200 Peter Pan Whipped (Creamy) 16.3 oz $2.12 0$.13 2 150

Safeway Private Label Select (Creamy) 18 oz $2.89 $0.16 2 180 Select (Crunchy) 18 oz $2.89 $0.16 2 180 Select Reduced Fat (Creamy) 18 oz $2.89 $0.16 2 180 6 Select Reduced Fat (Crunchy) 18 oz $2.89 $0.16 2 180 Organics (Creamy) 18 oz $3.59 $0.20 2 200 Organics (Crunchy) 18 oz $3.59 $0.20 2 200

Unilever Skippy (Creamy) 16.3 oz $3.69 $0.23 2 190 Skippy (Crunchy) 16.3 oz $3.69 $0.23 2 190 Skippy Natural (Creamy) 15 oz $3.69 $0.23 2 190 Skippy Natural (Crunchy) 15 oz $3.69 $0.23 7 2 190 Skippy Reduced Fat (Creamy) 16.3 oz $3.69 $0.23 2 180 Skippy Reduced Fat (Crunchy) 16.3 oz $3.69 $0.23 2 180 Skippy Roasted Nut (Creamy) 16.3 oz $3.69 $0.23 2 190

Smart Balance Smart Balance (Creamy) 16 oz $4.29 $0.27 2 190 2 Smart Balance (Crunchy) 16 oz $4.29 $0.27 2 190 14

TEST MARKET CAMPAIGN | planters peanut butter Total Total Total Fat Sodium Carbohy- Protein Vitamins/Minerals (DV) Sugar drates

17 g 3 g 140 mg 6 g 8 g 16 g 3 g 110 mg 6 g 8 g Iron: 2%, Magnesium: 10% 12 g 2 g 105 mg 5 g 6 g

15 g 3 g 140 mg 8 g 7 g Calcium: 2%. Iron 4% 15 g 3 g 110 mg 8 g 7 g 12 g 2 g 110 mg 8 g 7 g Iron: 2% 12 g 2 g 110 mg 8 g 7 g 16 g 2 g 120 mg 6 g 8 g Iron: 4% 16 g 2 g 120 mg 6 g 8 g

16 g 3 g 150 mg 7 g 7 g Iron: 4%, E: 10%, 16 g 3 g 125 mg 7 g 7 g Niacin: 20% 16 g 3 g 150 mg 6 g 7 g Iron: 4%, E: 10%, 17 g 3 g 125 mg 6 g 7 g Niacin: 20% 12 g 4 g 170 mg 15 g 7 g Iron: 4%, Niacin: 25%, Folic Acid: 8%, 12 g 4 g 160 mg 15 g 7 g Magnesium: 15%, Zinc: 6% 16 g 3 g 125 mg 7 g 7 g Iron: 4%, E: 10%, Niacin: 20%

16 g 3 g 145 mg 6 g 7 g E: 105, Iron: 4%, Thiamin: 8%, Niacin: 16 g 3 g 145 mg 6 g 7 g 20%, Folate: 10% *These brands’ prices were taken from a Wal-Mart Super Center. All other brand prices were taken from Safeway. 15

TEST MARKET CAMPAIGN | planters peanut butter shelf schematic

The following Shelf Schematic was pulled from Safeway in Pullman, WA (a store within the test

market). As you can see, the front runners for shelf space included Jif, Skippy, and Safeway’s

private label peanut butters Organics and Select. In the majority of the other distribution

stores, the shelf space proved to be similar. Jif and Skippy were usually front runners, followed

closely by a private label peanut butter.

As shown by the chart, Peter Pan Peanut Butter is not distributed by Safeway. For comparative

purposes, we investigated several stores within our distribution plan that did carry Peter Pan.

In these stores, the shelf space for that particular brand proved to be minimal (less than a foot

in length).

This particular schematic only includes shelf space that contained peanut butter, or peanut

spreads. It should be noted that there was an additional shelf above the top shelf in the chart.

This shelf featured honey, other nut butters and spreads.

TEST MARKET CAMPAIGN | planters peanut butter IM Adams Mara Jif Healthy Natha Pumpkin (36 oz, $6.15) Nutella Hazelnut Spread (28oz, $4.79) (15 oz, Almond Butter Sunflower Sunflower (26 oz, $3.99) Seed Butter $5.49) Butter

Adams Organics Mara Open Nature Simply Jif Natha Goober PB& J (17.3 oz, (36 oz, $6.15) (16 oz, $3.29) Roasted (18 oz, $3.69) (26 oz, $3.99) (18 oz, $3.59) Tahini $4.79) Skippy (Regular & Natural) Smart Jif Adams No- Stir Organics (No-Stir) Mara Natha (16.3 oz, $3.69) Balance (40 oz, (16 oz, $3.29) (16 oz, $3.29) (12 oz, $7.19) (15oz, $3.69) (16 oz, $4.29) $6.49) Skippy (Reduced Fat & Honey Select (Regular & Reduced Fat) Jif (Natural & Reduced Fat) Roasted Nut) (18 oz, $2.89) (17.3 oz, $4.79) (16.3 oz, $3.69)

Skippy Select (28 oz, $3.95) Jif (28 oz, $3.95) (40 oz, $6.49)

Select Jif Skippy (18 oz, $2.89) (40 oz, $7.39) (40 oz, $6.49)

Skippy Select Adams (No-Stir) Jif (Regular & To-Go) (64 oz, $10.39) (64 oz, $6.49) (80 oz, $12.29) ( 2 pack of 40 oz, $11.99) (To-Go: 8 pack of 1.5 oz cups, $2.69)

Length: 9’, Height: 6’, Depth: 20” 17

TEST MARKET CAMPAIGN | planters peanut butter JIF

Product Summary: The brand Jif is owned by the J.M. Smucker Company, under the parent company Procter & Gamble. Since the early 1980s, Jif has been the leader in market shares for peanut butter. With the slogan “Choosy Moms and Dads Choose Jif,” Jif has established a strong demographic among parents. Within the Cook’s Illustrated taste test, Jif’s original creamy variety placed second behind Skippy for top creamy peanut butter brand. Within the same taste test however, Jif proved to be the favorite for sauté sauce, and was also a front runner for baking. Consumers shared similar opinions of Jif with Skippy, commenting on it’s dark, roasted flavor and versatility with cooking and baking. Jif currently offers 11 varieties.

Appearance: The original creamy and crunchy Jif jars display simple and bold graphics. Both contain the signature red, blue and green stripes with the bold ‘Jif’ brand name on top. Like Skippy, Jif’s package also displays an illustration of peanuts. A standout graphic on the jar says, “#1 Choice of Choosy Moms”, reinforcing the strong connection within the parent demographic. Each variation has a different colored lid (i.e. the Extra Crunchy jar lid is blue). Within the natural variations, Jif also employs tones that are more natural. The portable cups of ‘Jif To Go’ resemble pudding packs with the cardboard packaging surrounding individual cups. A pretzel being dipped into one of the cups is featured on the package, emphasizing the use peanut butter as a snacking food.

TEST MARKET CAMPAIGN | planters peanut butter ADAMS

Product Summary: Adams Natural Peanut Butter is also owned by the J.M. Smucker company. Their natural peanut butter line is made with 99% peanut, while their Organic line is USDA certified organic and contains no artificial flavors, colors or preservatives. As a whole, all Adams’ varieties have no added sugar, and have 0 grams of trans fatty acids.. Most of Adams’ varieties are oil based, and are considered by many to exemplify the ‘old fashioned’ style of peanut butter. Due to their all-natural formula, Adams peanut butter is popular among active adults that are involved heavily with athletic training. Within consumer reviews, many people commented on Adams being a healthier option, but also the extra effort of stirring an refrigerating the jar.

Appearance: Adams peanut butter exemplifies the ‘old fashioned’ style of peanut butter with their packaging. It is one of the few peanut butters that still comes in a glass jar with metal lid. Adams’ jar colors are similar to Jif, with a heavy use of yellows, reds, blues and greens. The brand name is featured on the package in an old-fashioned font with the text “100% Natural” displayed below. The organic varieties use more green on their packaging than the other varieties. The text “Organic” replaces the “100% Natural” text on the original varieties. The no-stir varieties contain more white on the package, and replace “100% Natural” with “No-Stir.”

TEST MARKET CAMPAIGN | planters peanut butter LAURA SCUDDER’S

Product Summary: Laura Scudder’s is another peanut butter brand under the J.M. Smucker Company, under Procter & Gamble. Besides sharing the same parent companies, Adams and Laura Scudder’s have several similarities. These include web site layout, slogan (“Naturally Powered by You”), and a target of active adults. Like Adams, Laura Scudder’s also has 0 grams of trans fatty acids. In addition, all Laura Scudder’s peanut butter is Kosher certified and are certified USDA Organic. Similar to Adams, Laura Scudder’s consumers need to refrigerate and stir the peanut butter.

Appearance: The Laura Scudder’s varieties use blues, greens, yellows and reds for the majority of their packaging. These colors are much richer and more natural than the palates present on Jif or Adams packaging. Every variety features an illustration of a peanut, with the brand name in a feminine cursive font. All varieties except organic and no-stir feature a banner that says either “All Natural” or, “Natural Style.” The organic variety features a circular seal that verifies the USDA organic certification. On the no-stir packaging, a banner proclaiming “No-Stir” replaces the “All Natural/Natural Style” banner on the original varieties.

TEST MARKET CAMPAIGN | planters peanut butter PETER PAN

Product Summary: Peter Pan peanut butter is owned under the ConAgra food Company. They are recognized by many as an older, more established peanut butter brand. Their current target is green or eco-friendly families. Their web site clearly establishes this target with pictures of children interacting with nature, as well as links about being ‘green’. Recently, Peter Pan introduced a more environmentally friendly jar that uses 9-12% less plastic. While most consumer reviews of the product were positive, Peter Pan has received little attention recently from professional critics.

Appearance: Peter Pan peanut butter jars feature the Disney character Peter Pan on each jar flying above the brand name. The font used for brand name is also the same font used for the Disney Peter Pan movie. This establishes the appeal to kids, who may then push their parents to buy the product. Yellows, reds and greens dominate the packaging for each variety. Unlike many of the other competing brands, Peter Pan does not feature an illustration of peanut butter or peanuts on its jar.

TEST MARKET CAMPAIGN | planters peanut butter JUSTIN’S

Product Summary: Justin’s Nut Butter produces a peanut butter line as well as several other nut butter varieties. The peanut butter (excluding Justin’s honey peanut butter varieties) is dairy free, gluten free, kosher, and requires no refrigeration after opening. All of their products are either all organic, partially organic, or all natural. Justin’s comes in 80-calorie packets, squeeze packs, as well as the usual jar.

Appearance: Justin’s packaging stands out on the shelf in a simple white label dawning the brand name with an illustrated unshelled peanut. The font used for the brand name is a handwritten cursive. On organic varieties, a small USDA certified seal appears on the label. On the honey and chocolate peanut butter varieties, the unshelled peanut illustration features a drop of the added sweeteners partially covering the peanut.

TEST MARKET CAMPAIGN | planters peanut butter SMART BALANCE

Product Summary: Smart Balance produces a number of healthy alternative products including milk, butter spreads, cooking sprays, and of course, peanut butter. Smart Balance peanut butter is gluten free, dairy free and vegan. No refrigeration is necessary for Smart Balance peanut butter, but stirring is recommended as some oil may separate during storage time. Consumer reviews of the product highlight the peanut butter being vegan, as well as the lack of hydrogenated oil. Their target is health conscious older adults. Their web site contains health tips and recipes to help promote and sustain this target.

Appearance: The packaging for Smart Balance peanut butter is comprised of greens and yellows, busy and text heavy. Similar to other brands, the label features an illustrated peanut. Some of the sub headings on the label include “Great Taste!”, and “Rich Roast.” These sub headings help encourage new weary buyers that although the product is healthy, it still tastes good.

TEST MARKET CAMPAIGN | planters peanut butter SMUCKER’S

Product Summary: Like Adams and Laura Scudder’s, Smucker’s peanut butter is also owned by the J.M. Smucker Company. They offer two lines of peanut butters: all natural and organic (both of which are USDA certified). When compared to other all-natural peanut butters, Smucker’s has been ranked high in several professional taste tests. Among consumer reviews, many remarked on the healthy qualities of both lines and the minimal stirring required after opening (however, many recommended refrigeration). As a whole, Smucker’s is a well-known brand and appeals to many. Their peanut butter is marketed toward health conscious families and parents.

Appearance: The packaging for Smucker’s peanut butter relies much more on deep natural tones like browns, tans, yellows, and reds. For variety differentiation, small banners of green and blue are also used. The jar for both lines is glass with metal tops (similar to Adams and Laura Scudder’s). Like many of the other competing brands, they also feature an illustrated peanut on the jars.

TEST MARKET CAMPAIGN | planters peanut butter SKIPPY

Product Summary: Skippy is a peanut butter brand under the parent company Unilever. Skippy has a slogan specifically targeting children, solidifying its popularity among a younger demographic (children). In a taste test done by the magazine Cook’s Illustrated, the original creamy Skippy has claimed the top creamy peanut butter brand in 2001, 2006 and 2011. Skippy has also proven popular among consumers, with many reviews stating the ‘great taste’ and versatility of the brand (from baking to snacking). Including the original creamy and ‘Super Chunk’ varieties, Skippy currently offers nine varieties.

Appearance: In a professional Bright blues, yellows, and oranges are seen throughout the original Skippy line. Graphic sunbeams highlight each of these jars as well. taste test, Accompanying the brand name and slogan on the jar are illustrations of peanuts and peanut butter. The slogan “Fuel the Fun” appears in uneven blocked capital text at the top of the center of the label. This slogan appears the largest on the original creamy variety. Other Skippy’s original varieties highlight different qualities in large block letters. The ‘Reduced Fat’ variety is emphasized in the title. Within the ‘Natural’ creamy variety varieties, Skippy utilizes a different jar shape with a more natural color palate. The original ‘Fuel the Fun’ slogan is replaced with ‘No earned 1st need to Stir!’ on two of the three natural varieties. The word ‘Natural’ is highlighted on all three jars in a flowing and organic font. place.

TEST MARKET CAMPAIGN | planters peanut butter 3. The Consumer

The Big Picture According to the 2010 SRDS Market Profile Report, the total adult population of the Spokane, WA designated market area (DMA) is 847,594. The population is made up of 49.8% males and 50.2% females, which illustrates that gender is nearly equal in the DMA. The majority of the population is married, accounting for 53% of the total. Of those who have never married, Females make up 12.4% of the population and males, 15.4%. The population within the Occupations & Education Levels Spokane The most popular occupation in the DMA is among the professional and technical field (25%), followed by those who are retired (17.3%), blue collar workers (13.5%), and homemakers (13.4%).* The highest attained education DMA is split levels are high school graduate, GED (29%) followed by some college, no degree (26%). Nearly a quarter (23.7%) almost equally of the population has attained a bachelor’s degree or higher. The six races/ethnicities within the Spokane DMA are between men White (88.2%), Hispanic (7.5%), Other (3.5%), American Indian (2.3%), Asian (1.6%) and African American (1.2%). and women. Household Information There are 428,954 households in the Spokane DMA, and out of these households the median age is 37 years old. For the most part, there are two main age segments in the Spokane DMA. The largest portion of the population is between the age groups of 45-54 (13.8%) and 25-34 (13.7%). It is also important to note that of this population, 67.3% are family households. The median household income is $45,004, and a quarter of total households make under $25,000 (26.2%).

*Indicated by 2009 SRDS Market Profile Report 26

TEST MARKET CAMPAIGN | planters peanut butter Trends in Consumer Purchasing & Behavior

Sales The Future According to Mintel, volume sales of peanut and other Overall, consumers were seen to move to more affordable, nut butters has been falling or flat since 2005, with store brands when their budget was tight. In savory volume sales in 2009 2% lower than they were in 2005. and sweet sales during 2009-10, private label accounted However, the FDMx sales of peanut butter have been for 26.7% share, a significantly higher share than the growing, even as volume sales remain flat. This is due in typical 10% to 20% seen in other food and beverage part to a 2008 jump in food prices created by rising raw sections. This indicates that brand loyalty is low in savory materials costs, not necessarily an increase in demand. and sweet spreads, especially when budget is tight.

In both savory and sweet spread segments, there are Peanut butter consumers are making more conscious manufacturers building and maintaining brands. Overall, the purchasing decisions as their grocery budgets shrink. Mintel spreads segment slipped 2.1% from 2009-10, with all but one reports that supermarket sales declined 1.4% during 2008-10. of the leading manufacturers and private label reporting down As consumers continue to watch spending and cook at home, sales. Unilever, the top seller of sweet and savory spreads, mass merchandise outlets for typical grocery purchases have experienced a 4% overall decrease in sales from June 2009 to been more embraced than the traditional supermarkets. June 2010. ConAgra was also down, experiencing a dismal Consumer purchasing decisions and cooking patterns change, 10.6% drop in sales. In contrast, J.M. Smucker experienced and in recent years that has been the case because of the recession. a 2.6% increase, being the only leading manufacturer to do so. (Mintel, Savory and Sweet Spreads. US, 2010). . According to Mintel, consumer interest in natural and organic continues to grow. However, price points of these products are often prohibitive. From June 2009 to June 2010, sales of sweet and savory spreads in the natural channel grew 18.7% in natural foods supermarkets. 27

TEST MARKET CAMPAIGN | planters peanut butter Effects of the Recession Product Importance Despite strong organic performance in the market, For Americans, peanut butter is an economical and efficient conventional product sales (natural, non-organic) product to feed a family with, and to cook with as well. To grew three times faster than organic. This is due in support these ideas, qualitative information gathered from part by shoppers cutting costs during the recession a focus group shows that shoppers tend to buy a product by trading down from organic to natural items they are familiar with and trust. Sampling the product also (Mintel, Savory and Sweet Spreads. US, 2010). increases the likelihood of a consumer to purchase Planters Peanut Butter. Many of the focus group participants also The 6.5 billion market for savory and sweet spreads agreed that they buy the peanut butter they grew up with. is mature with opportunities for growth, limited to enticing consumers to trade up in price, to use a wider Based on a survey administered online, the majority of variety of products, or to increase frequency of usage. consumers base their decision of buying peanut butter segments in the Spokane DMA. The largest portion on taste (54%) and texture (30%). Furthermore, since of the population is between the age groups of 45-54 55% of respondents said sampling promotions influence (13.8%) and 25-34 (13.7%). It is also important to note their purchasing decisions, consumers may need to that of this population, 67.3% are family households. try a product before they would be convinced to buy it. The median household income is $45,004, and a quarter of total households make under $25,000 (26.2%).

28 *Indicated by 2009 SRDS Market Profile Report

TEST MARKET CAMPAIGN | planters peanut butter Consumer Profiles

YOUNG NUT-DULTS proportion of respondents’ time spent online, with 74% of students having visited ADULTS 18-24 a social networking site in the last week. Students within this age regard fun as a priority and the majority spends their money on entertainment, eating out, and bars This market makes up 10.7% of the Spokane DMA. Nationally, 59.4% of 18-24 year and night clubs. Hanging out with their friends is the most popular weekly activity. olds are employed either part time or full time. Also, 18-24 year olds make up 54.1% of all full time students. This demographic is disproportionately single, with 78.2% These full time students are more inwardly than worldly concerned, and the top responding that they are not married. When surveyed about grocery shopping worries noted among respondents are having enough money to do what they want, expenditures, 62% responded that they spend between $81-$150 per week, and 89.3% their own financial situation, and their job and employment prospects. Many are stated that their household eats peanut butter. This market is a high consumer of also worried about weight and health issues more than non-students. Lunch and peanut butter, with 50.3% of respondents stating that they have eaten between 1-2 jars dinner are the most frequently eaten meals among these students. It is important in the last 30 days. Of those who eat peanut butter, 73.8% eat creamy most often, and to note that students in this market are notorious for being resistant to traditional they are 97% more likely to have eaten 3 jars in the last 30 days (Simmons Choices 3). marketing efforts, and it has even been cited that they shut down completely once they feel like they’re being marketed to. However, 56% shop for coupons. A large portion of the Young NUT-dults are made up of college students, or Innovative and interactive marketing and promotion techniques are the best way U-NUT-versities. These students are aged 18-24, a population that represents to reach this target audience (Mintel, Marketing to College Students. US, 2011). approximately 10.7% of the population in the Spokane DMA. Furthermore, there are over 70,000 students attending 18 universities in this DMA. This market is comfortable with discretionary spending, with 73% of them owning a debit/ ATM card. Some students in this market do have part time work, but in general these students to not pay their own bills and are still dependent on their family for financial support. These students live in either dormitories or off-campus houses and apartments, and spend the most time sleeping, in school or work, and participating in online activities. Social networking sites make up a significant

TEST MARKET CAMPAIGN | planters peanut butter NUT-TURING MOTHERS MOTHERS 35-54 This market consists of married mothers between the ages of 35 and 54. These mothers have achieved a college education, and are employed, providing a dual income in their household from them and their husbands. The families’ make $75,000 per year, giving these households more spending power (Mintel, Marketing to Moms. US, 2011). They are growing increasingly concerned with health and nutrition, especially in regards to their children, and almost always read the nutrition labels on foods. Michelle Obama’s “Let’s Move” initiative will likely have a great influence on these mothers’ ideas about healthy eating habits for their kids. However, when asked what they are most concerned with in regard to their children, safety was the top of respondents list, even above nutrition.

Mothers define being a “good mom” as someone who keeps her children safe, protects her family’s emotional health, disciplines her children, and focuses on her family’s nutritional and physical health. Also, these mothers often put these child and family priorities before her own personal priorities such as working on their appearance or being actively involved in hobbies or activities. Time spent with their children is also growing for these mothers, and they often focus on getting their children involved with healthy and educational activities. This includes the time spent sitting down and having dinner together as a family.

TEST MARKET CAMPAIGN | planters peanut butter to make up the largest growth of fiber consumption between 2010-2015 (Mintel, Attitudes Toward Fiber and Digestive Health. US, 2010). This demographic WELL-AGED NUTS finds health specific support, and claims of “no” or “low” (for example, “fat free” SENIORS 55-74 or “low sodium”) on packaging are extremely influential. However, although seniors are more likely to look for low fat, sugar, cholesterol and high fiber foods, The 55-74 age demographic is the most rapidly growing population in the United taste is still of the utmost importance (Mintel, Healthy Snacking. US, 2009). States. In addition, the number of people over 65 years of age and in the work force will increase 19.7% by 2014. Seniors within this market live with a spouse or partner and make joint purchase decisions. They have a higher income due to joint income and working until later in life. This demographic is extremely likely to look for brand names when making purchase decisions because they trust the dependability of known brands. They also place a strong priority on product or quality of service, and price points are less effective in marketing toward this group. The key value proposition to emphasize for this market is value of the product. This market spends a majority of its discretionary spending on dining out rather than entertainment activities such as going to the movies, with 40% of respondents answering that dining out is how they spend their money. The channel that seniors most associate with coupons is supermarkets. Although this market does watch its overall expenses, they do not follow a specific budget, and occasionally they are likely to make spontaneous or spur of the moment purchases (Mintel, Senior Purchasing Decisions. US, 2010).

Health is a major concern for this market. Many gastrointestinal and other diseases become more prevalent with age. Fiber is seen as important because it helps with many of these diseases and improves overall well-being. These seniors are projected 31

TEST MARKET CAMPAIGN | planters peanut butter Primary Research Findings Online Survey An online survey was created using the site Qualtrics and administered using e-mail and social media sites such as Twitter and Facebook. There were 234 respondents in a five day period. There were 12 questions total; five focusing on consumer shopping behavior and peanut butter preferences, one on media usage, and six demographic questions. The following pages detail the results.

45.00% 38.66% 40.00%

35.00% 30.67% 30.00% Shopping Behavior 25.00% Promotional The least popular promotion chosen 20.00% Influences 13.45% by respondents was dominantly 15.00% 9.66% contests/sweepstakes. Respondents 10.00% 7.14% 5.00% said that contests had practically 0.42% 0.00% no influence on their purchase BOGO Samples Coupons Price Bonus Packs Contests matching decision. Most popular was buy one get one discounts and samples.

Packaging The most important factors to respondents are taste and texture. Texture

They see these factors as very Extremely Important Nutrition Product important and extremely important Very important Factors when making a purchase decision. Taste Neither Important not Unimportant Very Unimportant Brand Not at all important

Price

32 0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00%

TEST MARKET CAMPAIGN | planters peanut butter 60% 54%

50%

40% Brand Preference

30% 28% Peanut Butter Habits Jif ranked highest with brand loyalty, 20% 17% with a little over half of respondents

10% saying they would chose to buy Jif over

0% 1% the four other brands. Adams ranked 0% second with about ⅓ of respondents. Jif Adams Skippy Peter Pan Planters

35% Respondents most commonly eat 30% 30% peanut butter 2-3 times a week. 24% Peanut Butter 25% 20% Consumption 16% 15% 12% About half of respondents said they 10% 8% 10% would not be willing to branch off and 5% 0% 0% try a new brand. While about ⅓ said Daily 2-3 Times a Once a 2-3 Times a Once a Less than I do not they would consider the new purchase. Week Week Month Month Once a eat Month peanut butter

60%

49% 50%

40% Trying a New 34% Product 30%

20% 13% 10% 4% 0% 33 Very Likely Likely Unlikely Very Likely

TEST MARKET CAMPAIGN | planters peanut butter Media Newspaper 3% The most popular media outlet, not surprisingly, was the Internet Radio 3%

for social media sites ranking at Magazines 4% 7. In second was the Internet for Television 19% entertainment and video sties with Internet-social media sites 63% a 7 rank. After these two there is no one single stand out media outlet. Internet-news or informational sites 20%

Internet-entertainment or video sites 37%

0% 10% 20% 30% 40% 50% 60% 70%

Demographics 100% 89% 90% Race 80% 70% The majority of our survey 60% participants were White. 50% 40% 30% 20% 10% 0% 1% 3% 0% 3% 3% 0% White Black Hispanic Asian Native Pacific Other American Islander Age

The majority of respondents were in 90% 81% 80% the 18-24 year old age group. 70% 60% 50% 40% 30% 20% 7% 10% 6% 3% 3% 34 0% 18-24 25-34 35-44 45-54 55+

TEST MARKET CAMPAIGN | planters peanut butter 60%

51% Demographics 50% Continued

40%

31% Education 30% Half of our respondents have taken 20% some college courses, and about ⅓

10% 9% actually received a 4 year degree. 5% 4% 0% 0% Less than High High school Some college 2 year degree 4 year degree Masters Degree school Diploma/GED or higher

90% 82% 80% 70% 60% 50% Marital Status 40% The majority of respondents have 30% 20% also never been married before. 12% 10% 3% 1% 1% 0% 0% 0% Single, never Married Married with Divorced Seperated Widowed Living with married without children partner children

90% 85% 80% 70% 60% Household Size 50% 40% Almost all of our respondents do not 30% have any children. 20% 10% 4% 6% 4% 0% 0% 35 0 1 2 3 4+ TEST MARKET CAMPAIGN | planters peanut butter Focus Group

To support the quantitative data acquired from research sites such as Mintel, we conducted a six person (four females, two males) focus group facilitated by Molly McCue and later transcribed by Megan Barta. The focus group took place Thursday, September 29, 2011 at 5:30 p.m. in the media services room of the Holland-Terrell Library on the Washington State University campus. The overall goal of the focus group was to understand opinions on peanut butter, as well as what factors drive them to buy certain brands.

“It’s kind of To begin the focus group, participants were presented five jars of peanut butter: Jif, Skippy, intuitive... they Planters, Peter Pan, and Adams. make good The majority of the group (four of the six) chose Jif quickly as the most preferred brand, followed by Adams and peanuts so “whatever’s the cheapest.” None of the participants knew Planters as a peanut butter. All expressed their dislike they’re going for both the looks and history of the Peter Pan brand, with one of the participants citing the salmonella scare of 2007. to make good The group was divided for a dislike of Adams brand; three participants claimed that stirring oil was a deal breaker. peanut butter.” -Focus Group Participants unanimously agreed that Planters Peanut Butter must be good, since it was from a trusted brand they had history with. The design of the Planters label also appealed to Participant A participants, since it had a “classic” look and didn’t look “dated” like the Peter Pan packaging.

After the blind taste test of all five brands, the participants, in general, were surprised by how different the peanut butters tasted. After unveiling each peanut butter they sampled, two of the participants that had strongly preferred Jif claimed it was “too salty” and listed it as their least favorite during the blind test. None of the participants selected Jif as their favorite peanut butter. Both of the male participants chose Planters as their favorite when blindfolded, and one participant chose Peter Pan as their favorite.

The two men who chose Planters as their top peanut butter said they would most likely purchase it next time they go to the store. They also said that after trying the brand, they would recommend it to friends and family. 36

TEST MARKET CAMPAIGN | planters peanut butter Overall, we found that:

• The Planters brand is trusted for quality nuts and uses a classic label on the peanut butter jar.

• The participants typically buy the peanut butter they are familiar with or grew up on.

• Consumers are less likely to try something new if it is not on sale or recommended from someone they know.

• Peter Pan had the least appealing packaging, while Jif and Planters had simple, more classic looks.

• Consumers would be more likely to buy Planters Peanut Butter if they could try it before purchasing.

• Although consumers are loyal to a brand, it is not due to the taste of the brand, but to the familiarity and routine of purchasing it. 37

TEST MARKET CAMPAIGN | planters peanut butter 4. Distribution

Retail Channels by 1.4%, and there is an increase of 4.3% in sales by other retailers. Sales remain in supermarket channels such Sales in the savory and sweet spreads have been dominated as Rosauers, Albertson’s, Safeway, Yokes, Fred Meyer, by the super market channels with nearly 70% of sales. Super 1 Foods, Walmart, WinCo and Trading Co. Stores. Savory and sweet spreads sales in supermarkets reached nearly 4.4 million in 2010. Although the sales has dominated for this category, there has been increased competition from other retailers such as mass merchandisers and drug Promotional Practices stores (Mintel, Savory and Sweet Spreads “Retail Channels The promotions are relatively consistent from one - Other Retailers” US, 2010). Mintel estimates that overall retailer to another. According to Jeff Whittle, Assistant savory and sweet spread sales are down in supermarkets Store Manager of a Spokane Yoke’s grocery store, by 1.4%, and there is an increase of 4.3% in sales by other typical promotions include weekly advertisements, retailers. Sales remain in supermarket channels such month-long savings guides, in-store promotions, food as Rosauers, Albertson’s, Safeway, Yokes, Fred Meyer, sampling, on-pack coupons and end-cap displays. Super 1 Foods, Walmart, WinCo and Trading Co. Stores. Given that Yokes is not a national chain, Whittle says they have the flexibility when it comes to in-store promotions Slotting Fees and oftentimes play by their own rules. They employ specific promotional tactics such as ‘Fresh Fridays’, a one- Sales in the savory and sweet spreads have been dominated day sale only. Whittle mentioned that national chains by the super market channels with nearly 70% of sales. have gone away from this specific promotion as of late, Savory and sweet spreads sales in supermarkets reached but Yoke’s finds it to be a success, bringing a significant nearly 4.4 million in 2010. Although the sales has dominated amount of customers in to the store. According to Whittle, for this category, there has been increased competition it is the promotions and price reductions that drive sales. from other retailers such as mass merchandisers and drug stores (Mintel, Savory and Sweet Spreads “Retail Channels - Other Retailers” US, 2010). Mintel estimates that overall 38 savory and sweet spread sales are down in supermarkets

TEST MARKET CAMPAIGN | planters peanut butter Four Step Chain

Planters

Wholesaler

Retailer

Consumer 39

TEST MARKET CAMPAIGN | planters peanut butter 5. Advertising History

During 2007-09 there was a massive recall of peanut butter. Products made with peanut butter were also negatively affected and many brands, including those that were not even involved in the recall. In 2009, there were 714 cases of salmonella in 46 states (Peanut Corporation of America) (PCA) and according to the Centers for Disease Control and Prevention (CDC) Even though no major U.S. brands of peanut butter were involved in the recall, the downstream effects were devastating for everyone, including the recall of baked goods, snack crackers, and granola bars. The recall weighed heavily on consumers’ minds, with some consumers avoiding peanut butter completely. The PCA recall followed a large-scale recall of Peter Pan peanut butter (ConAgra Foods) in 2007-2008 for salmonella contamination, further reinforcing consumer suspicion of peanut butter products.

Market leaders The four major market leaders are Jif, Adams, Skippy and Peter Pan. Although J.M. Smucker Co. owns both Jif and Adams Peanut Butter, consumers have very different perceptions of these brands, due to the vast difference of health benefits and organic appeal.

The economic downturn has not driven brand-loyal consumers to private label peanut and other nut butters as a coping strategy, though it may be driving them to purchase more at Walmart. Private label sales of peanut and other nut butters fell from 2007-09, while volume sales of peanut and other nut butters have been falling or flat since 2005-09. At least some of the declines in volume sales can be attributed to migration to Walmart, except for 20% growth in dollar sales. Volume sales have fallen, indicating that the average price per unit is rising.

TEST MARKET CAMPAIGN | planters peanut butter Jif Peter Pan Since the beginning of Jif’s advertising campaigns, the focus has been on Mothers— Peter Pan’s advertisements focus on the smooth and creamy peanut butter taste the as seen by its famous tagline “choosy moms choose Jif.” Jif peanut butter in single- whole family can enjoy. In 2007, Disney’s animated character Peter Pan was announced serve packaging continues to contribute positively toward sales. The “Jif To Go” to become the mascot for the brand. In 2009, other animated characters from generated $8 million in sales and grew 5.8% during 2009-10. The portability, 1953’s animated film version of Peter Pan appeared in a new advertising campaign. portion control and ease of use fit an important role as consumers continue to live on-the-go lifestyles. Jif spent $30,916,600 on total advertising in 2009. When Peter Pan peanut butter was pulled from the shelf for nearly six months in Mainly focused on the normal Jif peanut butter, with $23,700,700 ad dollars. Jif 2007-08 due to salmonella contamination, sales fell 20%. ConAgra Foods slowly distributed most of their ad dollars in Network TV, Cable TV, and syndication. reintroduced its Peter Pan branded products in 2008, but the manufacturer continues to report down sales and slightly sliding market share. Peter Pan was back on the Skippy shelves in mid-2008 and generated $83 million in sales during 2008-09. However, Skippy is one of the most consuming peanut butter brands nationally. The brand sales took a 7% dip during 2009-10. To reintroduce Peter Pan back in the market, placed heavy emphasis on its wholesome and healthful nature; a kid-friendly, health- ConAgra spent $984,000 ad dollars in 2009 predominantly on newspaper ads. conscious image impressed the audience profoundly. The Skippy web site also features a “Kid’s Corner” section with games and crafts that make the Skippy peanut more Private Label attractive. The most famous celebrity spokesperson, Annette Funicello, served as head Private label new innovations nearly tripled their market share from 2005-09. peanut butter pusher with a multitude of TV commercials in the 1980s. Skippy peanut The difficult economy coupled with higher-quality products and much improved butter spent $648,000 ad dollars in 2009, predominantly on newspaper print ads. private label perception allowed retailers to seriously grow their own brands and extend product lines far beyond national-brand equivalents and value offerings. Adams Adams peanut butter is unique, because of its glass container, taste and ingredients. The brand focused on both men and women who like organic and natural foods. The position Adams takes is “Quality 100%” natural peanut butter for your money. The brand clearly advertises quality as more important than quantity. Adams take aim at health conscious people and strives to be advertised as the most natural peanut butter on the market.

TEST MARKET CAMPAIGN | planters peanut butter 6. Sales Promotion

When analyzing the competitor’s sales promotion strategies, it appears that there have been a massive increase with online promotions. These promotions include various discounts, sweepstakes, and contests. In order to stand out amongst competitors, it is important for Planters Peanut Butter to take what the competition is doing and better our promotion ideas and surpass them.

Jif Jif’s web site provides information about how committed they are to offering quality products to bring families together. Continuing with the slogan “Choosy Moms Choose Jif,” their web site lists recipes and tips mothers may use when feeding their families. The web site also promotes the eight other varieties of Jif.

Contests are also used as a sales promotion. Jif’s current contest, the “Most Creative Peanut Butter Sandwich” competition, ends on November 23, 2011. The Grand Prize Winner of the best Jif sandwich recipe receives a $25,000 college fund, $10,000 for educational products and one Jif Peanut Butter gift basket. Another recent contest Jif promoted is the “That’s Why I Choose Jif” essay contest. The winner of this will fly to New York and take part in the judging process for the “Most Creative Peanut Butter Sandwich” contest mentioned earlier.

Besides contests, Jif also has a presence on social media sites including Facebook. Users are able “like” their Facebook page, share experiences and photos with the Jif brand, and watch previous Jif commercials. The Facebook page is also a platform to share recipes and snack ideas others have discovered while using Jif Peanut Butter.

Jif in-store promotions include end-cap displays around peanut butter and baking aisles. The price of the jar, however, typically remains at the steady price of $4.79 for the most purchased 28oz jar.

TEST MARKET CAMPAIGN | planters peanut butter Skippy well as a sign up list for activities sponsored by Adams. Skippy targets the majority of their promotions to Various links get users involved with fitness activities, kids and youth. The “Fuel the Fun” slogan, as seen on and other races sponsored by Adams Peanut Butter. their web site, initiates a fun environment for kids. On their site, Skippy features a “Kids Corner” that Peter Pan provides games, fun facts and craft ideas for kids. ConAgra Foods has taken a sustainable approach to promotions by emphasizing Peter Pan’s minimized

Skippy also promotes their nine peanut butter spreads ecological footprint. This includes the earth-friendly online. Social media sites, including Facebook and peanut butter jar that Peter Pan is packaged in. Twitter, keep consumers updated about Skippy news and promotions. Both sites share recipes and Peter Pan uses Facebook to promote recipes and insure conversations between Skippy and its followers. consumers of the safety and quality of their peanuts. In response to the 2007 salmonella recall, Peter Pan

Skippy’s recent in-store promotions include on- promotes a ‘going green’ message on their web site. pack coupons for other Unilever products. If a consumer purchased a jar of Skippy, they would get In August 2011, the brand worked with Feeding America a dollar off on Helmann’s or Best Food’s mayonnaise. to promote charitable giving with Peter Pan Peanut Butter. Consumers could send in a UPC code from any ConAgra Adams product and a monetary donation would be made. Adams Peanut Butter promotes their brand often through Facebook. Besides online promotions, Adams sponsors marathons including the Portland Half and the Divas Half in Colorado. At these events they hand out sample packs and grab bags for participants at the end of the race. The bags contain recipes and coupons to use with Adams.

On Adams’ web site, the theme of how to be active and live a healthy lifestyle dominates the page . Their site includes 43 an interactive quiz to determine a fitness personality, as

TEST MARKET CAMPAIGN | planters peanut butter 7. SWOT Analysis

What we know is wrong...

• Planters, as a brand, is a well-known household name and consumers recognize the brand for a variety of nuts, not specifically peanut butter.

• The peanut butter market is dominated by four major brands such as Jif, Skippy, Adams and Peter Pan. What we can do to help...

• Focus group participants had a hard time distinguishing • Focus group participants approved of the current different brands when a taste test was conducted. Planters peanut butter packaging, calling it classic and recognizable.

• Considering brand awareness is already high, we can create a campaign focusing on product awareness.

• Increase promotions, in-store displays, etc., to drive impulse buys of Planters products.

TEST MARKET CAMPAIGN | planters peanut butter STRENGTHS

• Planters as a brand name is strong and recognizable WEAKNESSES - Brand History • Small market share of peanut butter. - Packaging • Limited to 2 varieties, creamy & crunchy. - Already an association with peanuts & nuts

• Mr. Peanut. • “[If they] make good nuts, they make good peanut butter”, Focus Group Participant A. • Classic, simple package design that rate high with focus group participants.

THREATS

OPPORTUNITIES • Market leaders such as Jif, Skippy, & Adams. • Private labels such as Western Family & Great Value. • Mintel estimates annual growth of 2.5% a year from • Rise in peanut allergies (according to Mintel) 2011-2015 with sales topping $7.3 billion in 2015. • Brown Baggers -Consumers on a budget • Health Benefits • Economic Downturn - Consumers seeking affordable options • Peanut butter is found in major grocery chains, and is easy for consumers to find. 45

TEST MARKET CAMPAIGN | planters peanut butter test market city

Spokane From its metropolitan heart in Spokane, the Spokane designated market area (DMA) serves as the economic hub for the Inland Northwest and Northern Idaho. Spokane is Washington’s second-largest city, the third-largest city in the Pacific Northwest, and the largest city between Minneapolis and Seattle.

Age & Gender The Spokane Designated Market Area (DMA) is representative of the United States population, making it an ideal test market city for Planters Peanut Butter. We defined the target audience for Planters Peanut Butter to be men and women ages 18-24. In the Spokane DMA, men and women ages 18-24 account for 10.7% of the total population, which is highly comparable to the United States population, accounting for 10% of the nation’s population (U.S. Census Bureau, 2010 American Community Survey). Household Income & Size Other than age, household income is a strong comparison between Spokane County and the rest of the United States. About 44.3% of the entire population of Spokane County has a household income of $50,000 or more per year, whereas 50% the United States population has an average household income of $50,000 or more (U.S. Census Bureau, 2010 American Community Survey). The average household size for Spokane County is 2.50, while the average household size in the United States is 2.63.

TEST MARKET CAMPAIGN | planters peanut butter Marital Status & Education Spokane County has relatively the same amount of married couples as does the United States (Spokane County: 51.6%; United States: 51%). However, Spokane County has a slightly higher divorce rate of 12.5%, whereas the United States has a divorce rate of 10.9%.

Based on statistics provided by the 2010 U.S. Census, 28.4% of Spokane County has attained their Bachelor’s degree or higher, while 28.1% of the United States has attained their Bachelor’s degree or higher.

Employment Finally, 56.1% of Spokane County is employed, while 57% of the United States is listed as employed. The unemployment rate in Spokane County is listed as slightly higher than the United States average (Spokane County: 11.2%; United States: 10.8%). All of these statistics show a strong market comparison between Spokane County and the United States, which will be beneficial to our overall test market campaign and how this product will fare throughout the entire nation.

TEST MARKET CAMPAIGN | planters peanut butter campaign objectives

1.) Launch Campaign January 1st, 2012 The 12 month test market campaign will begin on January 1, 2012. This date will allow for immediate promotion and advertising of peanut butter leading into the summer months. Also, it will provide an adequate amount of time for word of mouth to spread interest of the product. Doing so before and during the summer months will establish a brand recognition before peanut butter demand is high, and also when our campaign efforts are highest.

The 84 2.) Target adults ages 18-24 in the Spokane DMA supermarkets The Spokane DMA is a highly representative test market in comparison to the United States. The percentage of adults, both men and women, ages 18-24 in the Spokane DMA (10.7%) is nearly identical to the percentage of adults in the United States (10%), combine to which reinforces our target audience selection. Other than the comparison of population of adults in the Spokane DMA, factors achieve a such as household income, marital status, and education level strongly correlated with the United States. market share of 69.7% 3.)Achieve product distribution in at least 60% of stores in the Spokane DMA There are over 160 total supermarkets in the Spokane DMA. In order to achieve distribution and exposure in at least 60% of the total market in the Spokane DMA, we chose nine retailers that comprise 84 supermarkets throughout the DMA. The retailers include: Albertson’s, Fred Meyer, Rosauers, Safeway, Super 1 Food, Trading Company, Wal-Mart, WinCo, and Yoke’s. The 84 supermarkets combine to achieve a market share of 69.7%.

4.)Advertise product via television, transit, and internet We have selected three media outlets to reach our consumer target market. These media include television, transit, and Internet. These three media choices were derived through extensive secondary research (SMRB, Mintel). Our research indicates high reach within each of the media we chose. Also, the diversity of these three mediums helps reach our target market in the most effective and cost efficient manner, given our budget.

TEST MARKET CAMPAIGN | planters peanut butter 5.) Achieve a maximum level of Gross Rating Points (GRPs) in the Summer/Fall of our campaign given our budget Since Planters Peanut Butter is a test market product, it is crucial that we reach our target audience immediately and effectively. We must introduce our product to the market and increase awareness among our target audience within the first 2 months of our campaign. Internet advertising along with viral videos, a contest, heavy to medium television campaigns, as well as other promotional efforts, will effectively reach our target audience during these months. Heavier advertising pulses will take place beginning in August, with blasts of television and transit advertisements in the Spokane DMA. These heavy advertisement blasts will last each month until the test market campaign ends in December. The initial 2 months of the campaign will engage the target audience, which will assist in the success of promotional attempts such as our Peanut Butter and Jelly Club, viral videos, QR code coupons, and a contest involving viral video submissions. For a more 6.) Maintain a consistent theme that reinforces the Planters brand and product packaging choices detailed Planters Peanut Butter is a new and unfamiliar product within the prestigious and familiar Planters brand. Also, there are breakdown of several other brands of peanut butter that are very established within the peanut butter market that consumers are already the budget, see familiar with and loyal to. Given the fact that Planters is already such an established brand, we will use a consistent Unique page 78. Selling Proposition (USP) as well as brand imagery relevant to the Planters brand throughout the campaign to establish strong product recognition among consumers. A consistent and coherent message with the history of the brand will be successful for the introduction of the product into the market compared to a single and newly crafted product approach.

7.)Maintain a budget of $121,596.72 Our total sales forecast is projected to reach $225,179.14. In order to maintain our budget we will use 60% of estimated total sales ($135,107.47) for the campaign budget. With slotting fees costing $28,560, our remaining balance is $93,008.16. The remaining $93,008.16 will be allocated with 83% ($77,030) toward advertising expenditures and 17% ($15,693.97) toward sales promotion, allowing us to remain within our total budget. Given these figures, there is a left over amount of 0.3% ($312.75) from our original budget.

TEST MARKET CAMPAIGN | planters peanut butter trade distribution plan

The city of Spokane, Washington contains 160 supermarkets. By breaking down the market share of supermarkets, we can establish a stronger presence in the Spokane market. In order to ensure a successful launch, Planters Peanut Butter will need to reach at least 60% of the target market in Spokane. The product will be placed in nine supermarket chains: Albertson’s, Fred Meyer, Rosauers, Safeway, Super 1 Food, Trading Company, Wal-Mart, WinCo, and Yoke’s. Together, these stores have a combined reach of 69.7% of the total target market.

Slotting Fees 84 stores x $340 Slotting fees are immediate payments required by retailers that manufacturers pay in order to secure space for their product = $28,560 on store shelves. Slotting fees help to pay costs of updating scanner data, discounting or loss of merchandise and physically in Slotting Fees stocking the shelves with the new product. Any additional product will initially cost the retailers.

Slotting fees for the Northwest Region are $170 per store. For the two types of peanut butter Planters will provide, creamy and crunchy, it will cost $170 (x2) to place two types of Planters Peanut Butter into each individual supermarket, totalling $340 per supermarket. In order to shelve both types in all 9 stores selected in the Spokane area, $28,560 will be spent on slotting fees.

TEST MARKET CAMPAIGN | planters peanut butter Place of Distribution Market Share Supers Owned Albertson’s Inc/ Distribution Portland, OR (13) 12.4% 13 Center Fred Meyer Stores Inc./ Puyallup, WA (4) 5.7% 4 Distribution Center Source: Safeway Inc. Seattle Division Bellevue, WA (27) 20.7% 27 SRDS Lifestyle Supervalu (Trading Co.) Spokane, WA 8.2% 10 URM Stores Inc. Market Analyst Spokane, WA 10.3% 14 (Rosauers Supermarkets Inc.) 2008 URM Stores Inc. Spokane, WA 6.8% 9 (Yokes Washington Foods Inc.) URM Stores Inc. Spokane, WA 3.4% 4 (Super 1 Foods) Wal -Mart Supercenter Dist. Corinne, UT (3) 3.7% 3 Center Totals 71.2% 84

This table shows the supermarkets in the Spokane DMA that will be distributed to. According to our primary research, end-cap displays and other in-store promotions for peanut butter were fairly uncommon. Instead, our campaign utilizes out of store promotion tactics, online coupons, and a viral video contest.

TEST MARKET CAMPAIGN | planters peanut butter sales forecast

Before we could determine a budget, our group first calculated the sales forecast for Planters Peanut Butter 16.3 oz jars. To calculate the sales forecast, several factors were taken into account. The wholesale case price ($21.48), number of jars in a case (12), average weekly case movement (2.4), number of weeks in the test market (52), and number of total stores in which the product will be sold (84) are all essential components. After collecting the data, the following calculation was done to obtain the sales forecast:

84 stores x 2.4 cases/wk/store x 52 weeks x $21.48 case price = $225,179.136

Having interviewed several store managers at various grocery chains, it was found that the average movement is 2 cases of Planters Peanut Butter per week. Although peanut butter sales increase during certain periods of time (e.g. the beginning of the school year) predicting the amount by which sales increase could lead to inaccurate data and an erroneous sales forecast. This is a conservative estimate of sales, but supplemented with the success of the campaign and the acceptance of the product by consumers, an increase in sales is anticipated.

TEST MARKET CAMPAIGN | planters peanut butter target market recommendation

In order to determine our target market we analyzed the information collected from the secondary research source Simmons Choices 3 and Mintel . The information for demographic characteristics and lifestyle on the following pages help narrow down a specific target market . To summarize, here is a breakdown of our recommended target audience:

Gender Male & Female

Age 18-24

Marital Status Single

Employment Status Part Time & Full Time

Education Level High School to College Graduates

Children in Household 0

Household Income > $15,000

Race Caucasian (White)

TEST MARKET CAMPAIGN | planters peanut butter Why 18-24?

The age group 18-24 makes up 10.7% of the Spokane designated market area. Although this is a small portion of the overall DMA population, we decided it would be best to promote our brand in this smaller market than be overwhelmed in a larger market. 62% of this age group spends between $81-$150 per week, and 89.3% stated that their household eats peanut butter. Also, 50.3% of respondents stated that they have eaten between 1-2 jars of peanut butter in the last month, and they are 97% more likely than other age groups to have eaten more than 3 jars in the last month. This reinforces our decision to target 18-24 year olds, because they spend a large amount on groceries, and almost all of them consume peanut butter at a high consumption rate.

Another main reason this age group was chosen was based on the competition: Jif, Skippy, and Peter Pan. None of these brands specifically target this age group, they all target mothers and children. The 18-24 age segment is an untapped market, providing a great opportunity to achieve success.

TEST MARKET CAMPAIGN | planters peanut butter Why full time college students?

College students are comfortable with discretionary spending, and 73% of them own a debit/ATM card. Also, a majority of college students use social media sites, with 74% of them having visited a social media site in the last week. This provides a unique opportunity to connect with this market through non traditional marketing efforts. Also, 56% shop with coupons (Mintel, Marketing to College Students. US, 2011).

Why single?

This demographic is largely single with 78.2% responding that they are not married. Because they are young adults, they are still transitioning into college and post-college careers. This age group is predominantly single and embrace their independence (Mintel, Marketing to College Students. US, 2011).

TEST MARKET CAMPAIGN | planters peanut butter Why Caucasian?

Within the Spokane DMA, 89.2% of the population is white. On an national scale, the majority of 18-24 year olds and college students of the same age are white (Mintel, Marketing to College Students. US, 2011). This race is the most representated in our DMA, and in colleges around the United States.

Why part/full time employed?

Of 18-24 year olds, 59.4% are employed either part time or full time. Having an income allows this age group to take part in discretionary spending (Mintel, Marketing to College Students. US, 2011).

TEST MARKET CAMPAIGN | planters peanut butter Target Markets Considered, But Not Recommended

Mothers, 35-54 GTN Agency considered mothers age 25-34 but do not recommend targeting them due to the amount of establishment they already have with other peanut butter brands. Jif, the leading peanut butter brand in the market, uses the slogan “Choosy Moms Choose Jif,” and is very well known among this demographic. GTN Agency believes it is best to choose a demographic that has yet to be significantly targeted by other peanut butters in the marketplace, rather than fight for an audience already loyal to an established brand.

Seniors, 55-74 “There is We considered the senior demographic, age 55-74, but do not recommend them as our main target audience. Although this a unique group has high spending power, a rapid growth rate, and a high income, they do not buy enough groceries and are very health opportunity to conscious. This market spends the majority of their discretionary spending on dining out. About 40% of respondents said that target younger dining out is how they spend their money. (Mintel, Senior Purchasing Decisions. US, 2010). Health is also a major concern with adults in the this older demographic. Because Planters is not differentiated by health benefits from other peanut butters, this demographic would be more difficult to create a connection with. peanut butter industry.”

TEST MARKET CAMPAIGN | planters peanut butter media plan

Media Budget Allocation

24% Transit 37% For complete Television budget Internet breakdown, see page 78 39%

Media Rationale In order to effectively implement the Planters Peanut Butter campaign, a variety of media vehicles were researched and considered. Both men and women aged 18-24 use social networking sites at least 4.6 hours a week. After examining all potential media options; Internet, television, and outdoor advertising were found to be more effective among those aged 18-24. With this unique combination of media and promotional events, Planters Peanut Butter will reach our target market. 58

TEST MARKET CAMPAIGN | planters peanut butter Media Quintiles Television Television was chosen due to the high number of heavy to moderate users within our target market, 40.66%. Quintile data showed the percent of heavy to moderate television users increases to 49.2% for full time college students age 18-24. The same pattern occurs for prime time television and early and late fringe television with a 10% and 5.8% (respectively) increase in usage between all 18-24 year olds compared to full time students of the same age group.

Television All Day: 18-24 Quintile 1 (Highest) Quintile 2 (2nd Highest) Quintile 3 (Middle) Total (000) 23,902 22,127 22,299 18-24 (000) 579 1,110 1,117 Vertical 2.42% 5.02% 5.01% Horizontal 8.46% 16.20% 16% Index 41 84 84

Television All Day: 18-24 Full Time College Students Quintile 1 (Highest) Quintile 2 (2nd Highest) Quintile 3 (Middle) Total (000) 23,902 22,127 22,299 18-24 (000) 247 177 244 Vertical 1.03% 0.80% 1.10% Horizontal 18.20% 13.00% 18% Index 87 67 93

TEST MARKET CAMPAIGN | planters peanut butter Television Prime Time: 18-24 Quintile 1 (Highest) Quintile 2 (2nd Highest) Quintile 3 (Middle) Total (000) 23,855 21,993 21,462 18-24 (000) 484 965 1,300 Vertical 2.03% 4.39% 6.06% Horizontal 7.07% 14.10% 19% Index 34 73 101

Television Prime Time: 18-24 Full Time College Students Quintile 1 (Highest) Quintile 2 (2nd Highest) Quintile 3 (Middle) Total (000) 23,855 21,993 21,462 18-24 (000) 192 242 263 Source: Vertical 0.80% 1.10% 1.22% Horizontal 14.10% 17.80% 19% SMRB Index 68 93 103 2009 HHLD Television Early & Late Fringe: 18-24 Quintile 1 (Highest) Quintile 2 (2nd Highest) Quintile 3 (Middle) Total (000) 24,076 21,747 22,351 18-24 (000) 817 897 1,168 Vertical 3.39% 4.18% 5.23% Horizontal 11.90% 13.10% 17% Index 57 70 87

Television Early & Late Fringe: 18-24 Full Time College Student Quintile 1 (Highest) Quintile 2 (2nd Highest) Quintile 3 (Middle) Total (000) 24,076 21,747 22,351 18-24 (000) 233 252 161 Vertical 0.97% 1.17% 0.72% Horizontal 17.20% 18.60% 12% Index 82 99 61 60

TEST MARKET CAMPAIGN | planters peanut butter Outdoor Out of Home advertising was chosen because of cost efficiency as well as total number of impressions the advertisements accumulate. According to quintile data, over 50% of 18-24 year olds, both student and non students, are either moderate to heavy users of Out of Home media.

Outdoor: 18-24 Quintile 1 (Highest) Quintile 2 (2nd Highest) Quintile 3 (Middle) Total (000) 21,790 22,132 23,822 18-24 (000) 834 1,352 1,279 Vertical 3.83% 6.11% 5.37% Horizontal 12.20% 19.80% 18.7% Index 64 102 90

Outdoor: 18-24 Full Time College Students Quintile 1 (Highest) Quintile 2 (2nd Highest) Quintile 3 (Middle) Total (000) 21,790 22,132 23,822 18-24 (000) 223 242 236 Vertical 1.02% 1.09% 0.99% Horizontal 16.50% 17.90% 17.4% Index 86 92 84

TEST MARKET CAMPAIGN | planters peanut butter Internet According to Mintel, men and women aged 18-24 are frequent users of the Internet. A Mintel on media usage found that 82% of those aged 18-24 use social media sites regularly (Mintel, Media Usage. US, 2010). Specific website usage data shows that this particular segment spends time online using social media, online shopping and managing online photography.

Internet at Home: 18-24 38% of 18-24 Quintile 1 (Highest) Quintile 2 (2nd Highest) Quintile 3 (Middle) Total (000) 21,790 22,132 23,822 year olds 18-24 (000) 834 1,352 1,279 claim Internet is Vertical 3.83% 6.11% 5.37% Horizontal 12.20% 19.80% 18.7% main source of Index 64 102 90 entertainment (Mintel, Media Internet at Home: 18-24 Full Time College Students Quintile 1 (Highest) Quintile 2 (2nd Highest) Quintile 3 (Middle) Usage. US, Total (000) 21,790 22,132 23,822 2010). 18-24 (000) 223 242 236 Vertical 1.02% 1.09% 0.99% Horizontal 16.50% 17.90% 17.4% Index 86 92 84

TEST MARKET CAMPAIGN | planters peanut butter Media Flow Chart

TEST MARKET CAMPAIGN | planters peanut butter Cost Efficiency Analysis

Medium Media Company Program Cost/Flight Circulation/Rating/Reach CPP/CPM, Adults 18-34 Internet Integrated Cyber Ad/Social Total 3 Months/ 2 Month Facebook.com Media Ad Pulses 117,660 .58 cents per click Integrated Cyber Ad/Social Total 3 Months/ 2 Month Google Ad Words Media Ad Pulses 685000 .25 cents per click Out of Home Permanent Bulletin/10'x30'/6 Lamar Advertising Panels $6,000 25 $2.46 Permanent Lamar Advertising Bulletin/10'x30'/12 Panels $10,800 50 $15.52 Transit Media Company Size/Format/Show Circulation/Rating/Reach Cost/Flight (4 Weeks) CPM Transit Ooh Media Full Bus Wrap (Size Varies) 60000 $2,900 $20.69 Ooh Media King Kong/30'X144' 30000 $800 $37.50 Ooh Media Back Attack Bus Wrap/ 9'x9' 20000 $600 $33.30 64 Ooh Media Queen/30'X108' OR 30'X88' 5000 $250 $20

TEST MARKET CAMPAIGN | planters peanut butter Media Considered, But Not Recommended

Several other media vehicles were considered for the Planters Peanut Butter campaign but were not chosen as a result of target market behaviors and a cost efficiency analysis.

Although The Mintel article “Marketing to College Students” cited that college students are known for their resilience to traditional media (Mintel, Marketing to College Students. US, 2011). Furthermore, the “Media Usage” article shows that 18-24 year olds only spend 13.4 hours per week listening to music or radio, yet spend 16.5 hours per week watching television. Exposure to television is higher among this age group than radio. Therefore, radio would not have been a wise investment for this particular target audience (Mintel, Media Usage. US, 2010).

Advertising in newspapers and magazines was considered but not chosen due to the declining readership among our target audience. Research on Mintel showed that readership of newspapers and magazines is significantly less than Internet usage among our target age group of 18-24. Only 47% and 56% read newspapers or magazines respectively, compared to 73% who read or browse websites on a PC (Mintel, Media Usage. US, 2010). Therefore, using Internet to reach this target market is much more effective than using print advertisements in newspapers or magazines.

TEST MARKET CAMPAIGN | planters peanut butter creative plan

To effectively reach our target audience, we developed our overall campaign around the slogan “Experience Matters...Just ask Planters.” This slogan references Planters’ long history with peanuts, and emphasizes the importance of experience. This slogan focuses on the Unique Selling Proposition (USP) Planters has against the other peanut butter market leaders. For over 100 years, people have eaten Planters peanuts-- unlike the competition’s peanuts. By taking the ‘experienced’ approach, the slogan conveys this brand expertise to the consumer, and pushes this trust with Planters to also be applied to their peanut butter varieties.

Visuals Yellow and

blue traditional The visual approach taken in each ad relies heavily on the appeal of vintage and retro items to our demographic. Because colors will be Planters is considered an iconic brand, our campaign will feature retro designs. The colors will remain the traditional Planters used, but made blue and yellow to emphasize the familiarity of the brand. A bright yellow sunburst appears on the majority of the visual more eye- displays to draw the viewer’s eye in, as well as add to the retro pop-art aesthetic. Mr. Peanut is vital to Planters’ success. For catching with a nearly 100 years, this icon has been the key to differentiate Planters from other Peanut brands. yellow sunburst and large Mr. Peanut. Facebook Advertisements

To promote Planters Peanut Butter to the targeted demographic of 18-24 year olds, we decided to use advertisements on the largest social media site, Facebook. With over 800 million users, this site will be an ideal platform to release our two different ads.

Both of the Facebook advertisements feature bold text in a vintage font, “Planters Peanut Butter.” The body copy starts with, “It’s Peanut Butter Jelly Time!” -- a reference to a popular viral video that was picked up by the television show Family Guy in 2006. Since the viral video now has 16 million views, and Family Guy is one of the highest rated shows with 18-24 year olds, 66 this hook in our ad copy resonates strongly with our audience.

TEST MARKET CAMPAIGN | planters peanut butter The first advertisement will promote the “Experience Matters” contest held by Planters, starting in January 2012. This ad will “Peanut Butter introduce the peanut butter and link to the Planters Facebook page, where users can ‘like’ Planters and see contest rules and Jelly Time” instructions. By promoting this first ad on Facebook, we will engage users with Planters and reach the target demographic originated with a about the contest. The second banner advertisement will emphasize Planters Peanut Butter as a new, innovative product flash animation, to the market. This ad will run at the beginning of August all through December. When clicked, it will link directly to later referenced the Planters microsite, which promotes the $.75 off coupons and features customer-submitted videos from the Experience Matters contest. in a Family Guy episode in 2006. -Know Your Meme, 2010 Television Commercials

Our television spots reinforce Planters’ experience with quality peanuts. To connect this message with young adults, we featured people in real life situations that require a substantial amount of experience in order to complete the task at hand. These situations are drastically different when there is no experience involved. Once the absurd lack of experience is obvious in our commercials, Planters Peanut Butter ends the scene reiterating the importance of experience and cites the 100 years of quality nuts.

Transit Advertisements

To further promote Planters Peanut Butter, we’ll advertise the retro yellow and blue Mr. Peanut on “queen” sized bus advertisements. This will keep the product in the path of consumers traveling on the street. Our slogan “Experience Matters... Just Ask Planters” will also be featured on the buses, accompanied by Mr. Peanut. We believe that the bright colors and retro Mr. Peanut will attract the attention of our targeted demographic, adults 18-24 years old.

TEST MARKET CAMPAIGN | planters peanut butter STA BUS QUEEN perienc matter; SIDE DISPLAY: jus as Planter. MEDIUM: Out of Home CLIENT: Planters Peanut Butter

UNIT OF SPACE: 30’x 108’

perienc matter; jus as Planter.

TEST MARKET CAMPAIGN | planters peanut butter FACEBOOK: MEDIUM: Internet CLIENT: Planters Peanut Butter

TURN BOOK TO VIEW NEXT SECTION.

TEST MARKET CAMPAIGN | planters peanut butter )

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TEST MARKET CAMPAIGN | planters peanut butter

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TEST MARKET CAMPAIGN | planters peanut butter

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TEST MARKET CAMPAIGN | planters peanut butter sales promotion

Overview The key to gaining a meaningful presence within a market with a new product is to create trial by consumers. Trial cannot be created solely by advertising. Rather, advertising and various promotions must be used cohesively. An effective use of both of these will first create product awareness, followed by trial. Advertising will be used to create initial awareness by repeating a unified message about Planters Peanut Butter. Promotions will then be implemented to interact with the target audience and create product trial by our consumers. After having tried the product, consumers will consider Planters Peanut Butter when they go to make a purchase decision. Repurchases will follow.

Promotional Events: Promotional Tactics:

Hoopfest Coupons Peanut Putter Jelly Time Microsite Experience Matters Contest QR Codes

TEST MARKET CAMPAIGN | planters peanut butter Promotion Events Although consumers are familiar with Planters nuts, Planters Peanut Butter is a new product in the peanut butter market. Sponsoring various events throughout the Spokane Designated Market Area will allow consumers to become more aware of Planters Peanut Butter. The following are specific events that will be effective in reaching the demographic projected for Planters Peanut Butter. Sponsoring a PB& J Club for schools within the Spokane DMA will not only bring awareness, but will act as a sampling tool. Planters Peanut Butter will also be sponsoring Hoopfest in Spokane, Washington- -the biggest three-on-three basketball tournament in the nation. This event will not only remind consumers of the brand, but continue to encourage purchasing decisions during the slower months of our campaign. Planters will also feature viral videos which contestants submit to enter in to win an iPad2, by sending in a video that shows their unique expertise. These contests will catch the attention of the intended target audience, by exposing consumers to Planters Peanut Butter. This will create brand awareness, because Planters is sponsoring the contest. With sponsoring these events throughout the year, Planters Peanut Butter will continue to stay in the minds of consumers in hopes to establish brand loyalty. Hoopfest With nearly 250,000 people in attendance in 2011, and steadily increasing each year, Spokane Hoopfest has become a premiere summer attraction for residents throughout the Spokane DMA and the nation. The majority of participants are from Spokane and surrounding areas. By sponsoring this event, there will be a substantial amount of Planters exposure. Our official sponsorship package includes our logo on backboards, logo on ticket stubs, and a range of other advertisements included throughout the event. The event is on the weekend of June 30th through July 1st. Hoopfest will provide Planters Peanut Butter an opportunity to propel product promotion and awareness during the summer months, when we will have a loll in other advertising outlets. 74

TEST MARKET CAMPAIGN | planters peanut butter Peanut Butter Jelly Time The Planters PB&J Time will be used as a sampling tactic for Planters Peanut Butter to gain awareness throughout the different college campuses within the Spokane DMA. It will also act as a social event for students on each campus. This event will be held at the beginning and the end of each school semester, falling under the months of January, May- June, August- September and December. Students are able to take part and enjoy a Planters PB& J sandwich from 11-2 p.m. on various campus sites, promoted by canvas banners. With each sandwich, students will be given a napkin with a QR code printed onto it. This will direct them to the Planters micro-site for additional coupons. The targeted demographic will be able to enjoy Planters Peanut Butter first hand. This will influence their future purchasing behavior and buying decisions. The Planters PB&J Club will have the potential to reach about 32,725 students.

Totals

6 events per school 18 Total Events 12,000 Sandwiches 12,000 Napkins 500 Jars of Peanut Butter 267 Jars of Jelly 1334 Loaves of Bread 6 Display Banners *See page 80 for Budget Breakdown 75

TEST MARKET CAMPAIGN | planters peanut butter “Experience Matters” Contest Planters has grown their own peanuts for over one hundred years. They are considered experts at making peanuts, therefore they are experts at making peanut butter. Planters would like to continue this quality by inviting consumers to share their expertise through a viral video contest. Contest videos will be used to keep Planters Peanut Butter exposed year round. Similar to a talent show, consumers will send in a video of their own special unique skill, that they consider themselves to be an expert at beginning in January. The top two contestants, selected from the Peanut Panel (Planters staff), will receive an iPad2 at the end of the contest in June. This contest gives consumers a fun, yet active way to stay in touch with the Planters brand. Consumers can participate in this contest by scanning the QR codes from previous PB&J clubs, which leads them to the micro-site of Planters. Consumers can also be linked to the micro-site through Facebook banners. On the Planters website, there will be detailed instructions on For official how to participate in the contest. After numerous participants send in videos, Planters will select contestant’s videos to promote contest the new Planters Peanut Butter, giving the top two winners of the contest a brand new iPad2. By Planters associating themselves rules, see the to every day experts, it builds a connection between consumers and brand. This positive association will have influence on future purchasing decisions. Appendix page 92.

TEST MARKET CAMPAIGN | planters peanut butter Coupons The coupons that will be offered to consumers and will be available online. Through a hyperlink on the new Planters’ micro site, visitors will be able to access and print the coupons, which are valued at $0.75 off a 16.3 ounce jar of creamy or crunchy Planters Peanut Butter. This hyperlink will be available beginning in August 2012. Facebook advertisements and QR codes on napkins at Peanut Butter Jelly Time events will raise awareness of the availability of these coupons. These coupons will be valid through December 31, 2012.

A hyperlink on Planters’ microsite allows visitors to access and print 75¢ OFF Planters peanut butter Creamy or Crunchy Peanut Butter coupons. O er Valid Through 12/31/12

TEST MARKET CAMPAIGN | planters peanut butter budget breakdown

Budget Total Sales Forecast $225,179.14 60% Sales Forecast (=) Campaign Budget $135,107.47 17% (-) Distribution Costs $28,560 Media (=) Advertising Budget $93,008.16 Promotions 83% of Advertising Budget (=) Media Budget $77,030

83% 17% of Advertising Budget (=) Sales Promotion Budget $15,693.97 Remaining Amount $312.75

Our budget techniques required that we allocate 60% of the total sales forecast toward the campaign budget. Once the budget was established, we accounted for distribution costs. With the remaining budget, we aimed to attain the maximum frequency possible, while creating product trial with consumers. We first focused on interactive promotional strategies, (contest videos, Peanut Butter Jelly Clubs, event sponsorships and coupons) to keep costs low while increasing product trial and interaction with the brand.

We allocated the remaining money left over from promotions to advertising expenditures in Internet, television, and out of home media. These media were used to create more awareness about our promotions, as well as Planters’ emerging product. All three media were scheduled to compli- ment the promotions and achieve the maximum GRPs among our target market. 78

TEST MARKET CAMPAIGN | planters peanut butter $225,179.14

$135,107.47 $28,560 $93,008.16

$77,030

$15,693.97 $312.75

TEST MARKET CAMPAIGN | planters peanut butter Peanut Butter Jelly Time Breakdown

Servings per Cost per Food/Product Amount Total Cost Container Unit Planters Peanut 24 500 $3.38 $1,690 Butter (28oz) Western Family Strawberry Jam 45 267 $3.99 $1,066 (32oz) Western Family 9 sandwiches 1334 $1 $1,334 Bread $300/6 Display Banners - 6 $300 banners Napkins - 12000 $0.06/napkin $720 Total $5,110

TEST MARKET CAMPAIGN | planters peanut butter bibliography

“Adams Peanut Butter” Web. 26 Sept. 2011. .

Arbitron. Radio Market Report. (Spring 2011).

Bloomberg. U.S. Labor Department, 15 Sept. 2011. Web. 26 Sept. 2011. .

Experian Simmons. (2009). NCS/NHCS: FALL 2009 ADULT FULL YEAR (NOV 08 - DEC 09 - HHLD. Experian Simmons Choices 3.

Hellmich, Nanci. “Who makes the best peanut butter?” USATODAY.com, Web. 26 Sept. 2011. .

“Jif” Home. Web. 26 Sept. 2011. .

“Justin’s Nut Butter Organic Honey Peanut Butter 10 Count Squeeze Packs,” 1.15 Ounce Boxes (Pack of 3): Amazon.com: Grocery & Gourmet Food.” Amazon.com: Online Shopping for Electronics, Apparel, Computers, Books, DVDs & more. N.p., n.d. Web. 27 Sept. 2011. .

“Justins Nut Butter - Products - Nut Butters.” Justins Nut Butter - Home. Web. 27 Sept. 2011. .

Mintel International Group Limited. (2010, June). Family Purchases: Kids as Influences. Retrieved from Mintel International Group Limited Web site: http://academic.mintel.com.

TEST MARKET CAMPAIGN | planters peanut butter Mintel International Group Limited. (2009, June). Healthy Snacking. Retrieved from Mintel International Group Limited Web site: http://academic.mintel.com.

Mintel International Group Limited. (2011, July). Marketing to College Students. Retrieved from Mintel International Group Limited Web site: http://academic.mintel.com.

Mintel International Group Limited. (2010, September). Media Usage. Retrieved from Mintel International Group Limited Web site: http://academic.mintel.com.

Mintel International Group Limited. (2010, September). Savory and Sweet Spreads. Retrieved from Mintel International Group Limited Web site: http://academic.mintel.com.

Neff, Jack. “P&G SELLS JIF, CRISCO TO SMUCKER.” AdvertisingAge. 10 Oct. 2001. Web. .

“Peanut Butter Jelly Time History” Know Your Meme, 2010. .

“Peanut Fun Facts - National Peanut Board.” National Peanut Board - Home Page. N.p., n.d. Web. 21 Oct. 2011. .

Sebany, Mike. “U.S. Retail Food, Energy Prices by Product for August.”

“Skippy.” Skippy. N.p., n.d. Web. 26 Sept. 2011. .

TEST MARKET CAMPAIGN | planters peanut butter “Smart Balance Rich Roast Creamy Peanut Butter.” Smart Balance. Web. 27 Sept. 2011. .

“Smucker’s Natural Chunky - 16 oz Glass Jar: Amazon.com, Web. 27 Sept. 2011. .

“Smucker’s.” Web. 27 Sept. 2011. .

SRDS. “Spokane, WA.” The Lifestyle Market Analyst. EXPERIAN Marketing Solutions, 2010. Web.

U.S. Census Bureau, 2010 American Community Survey, .

Washington State Employment Security Department. U.S. Bureau of Labor Statistics. (2011 Quarter 1).

York, Emily B. “Peanut-Butter Sales Volume Drops 13% in Four Weeks.” AdvertisingAge. 10 Mar. 2009. Web. .

TEST MARKET CAMPAIGN | planters peanut butter APPENDIX Primary Research Survey

Hello! We are an advertising agency from the Murrow College of Communication at Washington State University. We are currently conducting a survey and would very much appreciate your participation in this survey. This information will help our advertising team complete our test market research project. The survey will take about 5 minutes to complete. Some of these questions are personal, however all of the given information will be strictly confidential and will not be shown to other persons. Participation in this survey is voluntary and you may choose to skip any questions. We appreciate your input as your views and opinions are very important.

Do you agree to take this survey? Answer Response Frequency % Yes 250 100% Total 250 100%

1. Please rank the influence of the following promotions on your purchasing decisions. (1=most influential, 6=least influential) Response Answer 1 2 3 4 5 6 Frequency Buy one get one 92 84 43 11 8 0 238 discounts (BOGO) Samples 73 24 35 47 41 18 238 Coupons 32 59 65 46 27 9 238 Price 23 11 30 66 79 29 238 Matching Bonus 17 58 60 48 35 20 238 Packs Contests 1 2 5 20 48 162 238 84

TEST MARKET CAMPAIGN | planters peanut butter 2. What factors do you take into consideration when purchasing peanut butter? Neither Not at all Very Important Very Extremely Response Question Mean Important Unimportant nor Important Important Frequency Unimportant Packaging 48 69 89 30 2 238 2.45 Texture 3 7 41 116 71 238 4.03 Nutrition 11 25 77 77 48 238 3.53 Taste 1 2 12 94 129 238 4.46 Brand 12 17 64 97 48 238 3.64 Price 13 14 60 113 38 238 3.63

3. Out of the following five peanut butter brands, which would you be most likely to purchase? Answer Response % Jif 128 54% Adams 66 28% Skippy 41 17% Peter Pan 1 0% Planters 2 1% Total 238 100%

4. How often do you eat peanut butter? Answer Response % Daily 28 12% 2-3 Times 71 30% a Week Once a 58 24% Week 2-3 Times 39 16% a Month Once a 18 8% Month 85

TEST MARKET CAMPAIGN | planters peanut butter 5. How likely are you to buy a new brand of peanut butter? 8. What is the highest level of education you completed? Response Answer Response % Answer % Frequency Less than Very High 0 0% 9 4% Likely school Likely 82 34% High Unlikely 117 49% school 11 5% Very Un- 30 13% Diploma/ likely GED Total 238 100% Some col- 119 51% lege 6. Please indicate your gender. 2 year 21 9% Answer Response % degree Male 81 35% 4 year 73 31% Female 153 65% degree Total 234 100% Masters Degree or 10 4% 7. Please indicate which age group you fit in. higher Answer Response % Total 234 100% 18-24 190 81% 25-34 14 6% 9. What is your current marital status? 35-44 6 3% Answer Response % 45-54 17 7% Single, never 191 82% 55+ 7 3% married Total 234 100% Married without 3 1% children Married with 29 12% children Divorced 3 1% Seperated 1 0% Widowed 1 0% Living with 86 partner 6 3% Total 234 100% TEST MARKET CAMPAIGN | planters peanut butter 10. What factors do you take into consideration when purchasing peanut butter? Answer Response % 0 198 85% 1 10 4% 2 15 6% 3 10 4% 4+ 1 0% Total 234 100%

11. On a scale from 1-7, how often do you use the following media? (1=least often, 7=most often) Response Question 1 2 3 4 5 6 7 Frequency Internet- entertainment or 4 10 13 22 45 55 86 235 video sites Internet- news or informa- 6 23 19 30 55 56 46 235 tional sites Internet- social media 7 3 3 13 20 41 148 235 sites Television 20 17 18 30 44 62 44 235 Magazines 30 49 56 45 29 17 9 235 Radio 51 47 42 40 31 16 8 235 Newspaper 60 52 41 41 24 11 6 235

12 . Which race/ethnicity best describes you? Answer Response % White 209 89% Black 1 0% Hispanic 2 1% Asian 8 3% Native 87 1 0% American TEST MARKET CAMPAIGN | planters peanut butter Focus Group

Facilitator: Hi, I am Molly and I will be facilitating this focus group, but first we Participant D: And that’s hard to come back from too. need your consent to video tape this conversation. (Verbal consent from all).We are going to be talking about peanut butter today. First of all, of these five brands Participant E: And this one (Planter’s) just reminds me of nuts. I don’t think it was (Jif, Skippy, Planters, Adams, Peter Pan), is there anything that stands out to you? Is peanut butter because of the Mr. Peanut guy. there anything you associate with one brand rather than another? Participant B: Yeah, I think of just peanuts, not peanut butter. Participant D: Well two of them I buy. Facilitator: If you all were purchasing any one of these, which would you buy at the Participant F: The Jif stands out to me. But Adams also does just because it’s my grocery store? We will go around the circle and answer. favorite. Participant A: Probably Planters Participant D: I grew up on Jif, and my mom used to buy the Adams peanut butter. Participant B: Jif Facilitator: Do you buy the same brands now? The brands your mom bought? Participant C: it depends on price. I prefer Adams but I would buy Jif if it was cheaper. Participant D: I don’t buy Adams because all I remember with that is the oil that sits at the top. Participant D: Between Skippy and Jif it depends what is on sale. I also like that Skippy makes a low fat peanut butter. That’s the one I like. All Participants: Yeah. Facilitator: Do you think that the low fat tastes better? Or does it taste different? Participant E: And you have to stir it pretty well. The same? Participant D: No, I haven’t really done a comparison, but to me it is just as good Facilitator: So do you have anything negative to say about any of these brands of as the regular peanut butter. I just feel better because it’s low fat. I used to have peanut butter? problems with my skin associated with peanut butter. And so maybe its that the low fat peanut butter gives me a safe feeling. I don’t feel like I’ll wake up with a pimple Participant A: I don’t like this one (Peter Pan), it’s too red. in the morning.

Participant D: Well, wasn’t the Peter Pan one, didn’t it have a problem recently? Participant E: So don’t buy Adams! Wasn’t that one in the news? Participant D: No, exactly that’s a reason why I didn’t like the Adams label when I Participant C: Oh, really? was growing up because it makes your skin oily.

Participant A: It is kind of weird looking. Facilitator: How about for you?

Participant D: There was a recall. It had salmonella. Participant E: I think I would go either Jif or Skippy. But I buy the store brand if it’s on sale. I really can’t tell the difference. So I get whatever is the cheapest. I don’t Facilitator: Definitely not a good association for peanut butter. usually eat peanut butter that much.

Participant D: No. Participant F: If I’m going to Costco I get the Jif.

Participant E: No. Facilitator: The big one?

TEST MARKET CAMPAIGN | planters peanut butter Participant F: Yes, but otherwise I like the Adams. But it’s like they said, it depends Facilitator: When you’re baking, does your choice of peanut butter change? where I’m going to buy it from. Like at Costco, Adams is pretty cheap. But I feel like it is more expensive. Participant C: Well, I usually buy Adams for sandwiches and stuff, but I get a different brand like Jif or whatever is cheapest for baking because it doesn’t matter that much. Facilitator: Would any of you say you’re loyal to a particular brand. Is there a brand that you always buy? Facilitator: Do any of you pair things with peanut butter? Like for instance, we have apples here, do you guys dip any food in peanut butter or eat peanut butter with any Participant D: I’m not willing to go to Peter Pan only because of that recall. When I snacks? was growing up Peter Pan was one of the options. It has been a peanut butter label for a long time. Participant F: Celery.

Participant C: It looks a little out-dated. Participant A: I don’t do that.

Facilitator: Yeah, what about you guys, do you have any preferences? Participant C: I eat a lot of apples and peanut butter.

Participant B: I always buy Jif. It’s not that I have a preference, I just know it. Participant F: Adams peanut butter and cheddar cheese.

Facilitator: And is Jif kind of what you grew up eating? Facilitator: Are you spreading the peanut butter on the cheddar cheese?

Participant B: Yeah. Participant F: Oh yes, spreading. Tillamook cheddar cheese. And peanut butter chocolate. Participant A: I’m not sure. Buying peanut butter isn’t like, one of the big aspects of my life. I just bought Skippy a few weeks ago, just because it was cheap. Facilitator: And that was our next question, do any of you like peanut butter chocolate ice cream? Or just ice cream in general? Facilitator: Alright. And if you’re buying peanut butter at the grocery store, what are you buying it for? Are you making sandwiches, are you baking? What are you Participant E: No, no. It’s too sweet. using it for? Participant F: Oh but what about Ferdinand’s? Participant D: Exclusively sandwiches. Participant D: Yeah, I agree it’s too sweet. Facilitator: Just sandwiches, so is that plain peanut butter sandwiches? Facilitator: How about the look of all these peanut butter containers? The jars and Participant D: Peanut butter and jelly and that’s it. I don’t do anything but peanut the packaging—what do you notice and what do you like or dislike? butter and jelly. Participant E: The Peter Pan peanut butter seems dated. Participant F: I’ll put peanut butter on pancakes. Participant C: Yeah, it looks like it came off the shelf from the 80s or 90s. Or from Participant D: Oh yeah! Or waffles. Waffles with peanut butter. someone’s old pantry. Participant D: It reminds me of my mom’s house. Participant C: I bake a lot with peanut butter. Participant E: Yeah, yeah. Facilitator: And what do you make when you’re baking? Cookies? Participant D: My mom refused to buy Peter Pan, but I don’t remember why. She Participant C: Yeah, primarily cookies. just refused. 89

TEST MARKET CAMPAIGN | planters peanut butter Participant F: I think it was really expensive though, back then. Participant F: Yeah, Planters is new right?

Participant D: Maybe that’s why I grew up on Jif, because it was less expensive. Facilitator: Yes, the peanut butter is brand new.

Facilitator: How about Planters? Does anything about this packaging stand out to Participant A: The Planters jar is taller. Your knife can only fit so far so you get you? peanut butter on your hand from the rim of the jar. And then it just gets messy.

Participant D: Just that it’s Mr. Peanut. Participant E: Well not with peanut butter, but with mayonnaise they change the shape of the jar a lot. Participant B: It’s classy. Participant A: They need a peanut butter spread. A knife just isn’t big enough Participant A: Yeah, it’s pretty classy. because you have to keep putting it back in the jar to get more peanut butter.

Participant F: Yeah, it’s a classic design. Participant C: Yeah, like what if they had a squeeze thing that would spread it?

Participant C: I think the Planters is really basic. All the other ones are really busy, Participant B: Something you have to press to get it out. there’s a lot going on. Facilitator: So yes, Planters is brand new, it just entered into the market. So that is Participant D: Adams reminds me of the circus. The font looks like something from what we are going to talk about now. If you were shopping for peanut butter at the a circus. grocery store, do you think Planters would be in your cart?

Participant A: I don’t like Adams. I don’t like how it looks. Just the visual appeal. Participant F: If they had a smaller jar, yes.

Facilitator: Also, Adams is the only glass container. So do you have any preference Facilitator: So you think the jar is too big? what container your peanut butter comes in? Participant F: For me, yeah. It would be too big. I don’t have kids at home anymore. Participant D: I find myself feeling guilty about throwing away a Skippy or Jif jar just because it’s plastic. Participant B: I wouldn’t want to try a big container. Because if I didn’t like it there would be so much waste. Facilitator: Would you be interested in a package that is more eco-friendly? Participant C: I would be worried about the ingredients. My roommate is allergic to Participant D: Oh, definitely. a lot of things so that’s why we mainly get Adams—because it’s natural and only has two ingredients. Salt and peanuts. Participant C: Yes. Facilitator: So if it had a lot of things in it you would be less interested? Participant A: Not me really. My carbon footprint is way up here (holds hand above his head). Participant C: Yeah, definitely.

Facilitator: Ok, well now we are going to talk about Planters more specifically. A Participant A: If someone told me about Planters, I might try it. Or if it was on sale few of you mentioned that you are familiar with Planters peanuts, and that is sort or cheaper than the others on the shelf. I wouldn’t just buy it. of what you associate with the brand, so is there anything you want to talk about Planters? Participant F: My kids grew up on Jif. And my daughter, she says no way to Adams. She would see it and say “no way.” And that was when she was 17. Well they grew Participant D: Well, isn’t it new? up with their dad, and their dad’s side was the same. Their dad and I grew up when you had to stir up the Adams and pretty much keep it in the refrigerator so it didn’t 90

TEST MARKET CAMPAIGN | planters peanut butter separate. And then it was hard to stir. So whatever he told them, that’s what they Participant F: the color is a lot darker think that is, so they won’t even taste it. Participant D: it looks like real peanuts in it Facilitator: Great, so we are now going to do a taste test with these five peanut butters. These are in no particular order. The peanut butter jars on the table do Participant C: yeah, I can see pieces of peanut not correspond with the Dixie cups with the peanut butter servings in them. You all have five cups in front of you labeled A-E. We will start with E and work our Participant A: Eh, it just doesn’t do it for me way down to A. Participant E: It tastes pretty salty. Participant D: It’s not very sweet. Facilitator: Great, now let’s move on to A! Participant C: Very sticky Participant C: wow, this one’s really sweet Participant A: It’ stuck to the roof of my mouth Participant D: I like it Participant F: But it’s very nutty Participant B: It doesn’t taste really peanut-y Participant B: It’s a bad consistency Participant A: It’s alright

Participant E: It’s really grainy Facilitator: Now let’s go around and please answer what your favorite and least favorite peanut butters were. Facilitator: Ok so now we are going to move on to D Participant C: Wow, it’s very salty Participant A: Favorite was A (Planters), least favorite was E (Adams).

Participant’s B,E,F: yeah it’s really salty Participant B: Favorite was A (Planters), least favorite was E (Adams).

Participant B: it’s a better consistency than the first one Participant C: Favorite was E (Adams), least favorite was C (Planters)

Participant C: it tastes more fake, I don’t like this one that much Participant D: Favorite was A (Peter Pan), least favorite was E (Adams)

Participant E: I kind of like it Participant E: Favorite was D (Skippy), least favorite was B (Jif)

Facilitator: Great, now that we’ve talked about D, we’re going to move on to C! Participant F: Favorite was E (Adams), least favorite was B (Jif)

Participant B: this has a good taste Revealing: Facilitator: These are the corresponding peanut butters with the letters Participant E: it’s less salty A: Peter Pan Participant D: it’s really thick B: Jif C: Planters Participant F: it has a lighter color D: Skippy E: Adams Participant C: I can’t really taste it Facilitator: Was anybody surprised? Participant D: oh yeah, it’s good on apples Participant B: Yeah, Planter’s was my favorite and I was surprised because I Facilitator: What do you think of B? thought I knew my peanut butter better than that. 91

TEST MARKET CAMPAIGN | planters peanut butter Participant A: I’m surprised too. But it’s kind of intuitive. They make good peanuts, “Experience Matters” so they’ll make good peanut butter. Contest Rules Participant F: Yeah, I am surprised too, I thought I really liked Jif. “Show Planters what YOU are an Expert at” Participant E: Yeah, I thought I liked Jif, too. Objective Participant D: Wow, I am very surprised. I liked the taste of the Peter Pan but I would never buy it. Increase Planters Peanut Butter sales activity when the product is not per- forming up to sales/profit goals or when a dash of excitement is in order to Facilitator: Participant B, you liked Planters the best, would you now consider buying it since you’ve tried it? motivate sales. Invite the consumer to show us their special skills, whatever that may be. Participant B: Yes, I’d consider it. If I need peanut butter I’ll probably buy it.

Facilitator: Well, this wraps up our focus group for the evening. Does anyone have Prize any closing remarks? Anything else about any of these peanut butters? Two 1st place winners will each receive a new iPad2. Participant C: Well, I see a lot of ads for Jif on TV. Winners will be selected based on how impressive their unique skill is. Participant D and F: Oh yeah, just Jif though. Rules and Regulations Facilitator: Alright, thanks for your responses everyone. You’ve been very helpful. Explicit content prohibited, including, but not limited to: Nudity Cursing Harming others Drugs and alcohol

Consideration for Entry Anybody can enter, there are no limitations. Have a unique skill set that shows off you’re expertise in that field. Degree of difficulty will be taken into consideration. Winners will be notified.

Guidelines for Contestants All entries will become property of the sponsor once they are submitted. All contest decisions are final. 92 The contest will run for 5 months.

TEST MARKET CAMPAIGN | planters peanut butter 93

TEST MARKET CAMPAIGN | planters peanut butter 94

TEST MARKET CAMPAIGN | planters peanut butter