Michelle George, Canadian Marketing Director for Kettle Brand chips, was sitting in her home office staring blankly at her computer monitor. She had just completed a zoom meeting with her boss in the United States and received some surprising news. The organization has decided that they want to invest in driving the brand in the Canadian marketplace, and they are giving her $1 million dollars to be spent on marketing initiatives in the upcoming year, with the marketing objective of reaching a 3% dollar market share (RSP). Michelle has only 2 weeks to come back with a recommendation for marketing promotion plan that will achieve this goal by the end of 2020. Industry Trends: In 2020, the Savoury Snacks category grew by +9% versus the previous year, with the total category reaching sales of $5.4 billion dollars (see figure 1). All segments within the Savoury Snacks category experienced growth in 2020, which is expected to continue to 2025 (see figure 2). The company that clearly leads the category is Frito-Lay Canada, with a 37% dollar market share. The rest of the market is highly fragmented. The top brand in the category is Lay's with a 13% share of market, while the remaining competitors trail far behind. Doritos is the nearest competitor with a 4.8% share of market (see Figure 3). (Euromonitor International, 2020) March of 2020 was the beginning of a series of lockdown across many areas in Canada as a result of the COVID-19 pandemic, which saw over 600,000 Canadians infected, and over 16,000 deaths. It was certainly dark time in history, and it had a significant effect on everyday lives of individuals. People were limiting their trips to retail outlets, travelling far less than usual in their car, making many more purchases online for home or curbside delivery, and spending much more time in their home with their immediate family. As a result, impulse sales during COVID-19 slowed significantly; Savoury Snacks were challenged as a result of the reduction in impulse purchases typically made due to convenience when waiting to pay at points of sale, or a desire for portable consumption such as at gas and convenience stores. However, the demand for savoury snacks at home surged, as Canadians spend more time indulging at home. As people spend more time indoors streaming movies, videos and gaming, it is very common to consume a snack. Many people view snacks as a form of "comfort food"; they offer some comfort and indulgence in stressful times. (Euromonitor International, 2020) 2 Savoury snacks that offer consumers healthier options are set to register strong growth, largely due to perceptions of the superior naturalness and higher nutritional value of these products. Canadians continue to be increasingly health-focused and are paying closer attention to the foods that they eat. This trend has driven growth in the nuts/seeds/trail mixes segment, but also for products that are corn based (tortilla chips) or vegetable based. Nuts, seeds and tortilla chips also are well aligned with emerging trends towards Keto-friendly diets. There is also an increasing interest in vegan and vegetarian diets and lifestyles in Canada. (Euromonitor International, 2020) On Oct 17th, 2018, cannabis and cannabis-infused edibles became legal in Canada for recreational use. With this legalization came an increased demand for savoury snacks resulting from cannabis consumption, as a result of a distinct side effect of consuming cannabis creating "the munchies". (Euromonitor International, 2020) More than 85% of Canadians purchase products/services that have a less degrading impact on the environment and human health. However, people are not willing to pay a premium for these types of products, as 43% believe that "green" products and services are the new normal, "a required expectation." Canadian consumers aged 45 and older significantly more likely than younger adults aged 18-44 to purchase green products because it is better for the environment (59 per cent versus 38 per cent). Meanwhile, millennials are more motivated by health benefits than those aged 35+. (SCA, 2015) Company Background: Cameron Healy, the founder of Kettle Foods, started the company by selling natural foods from a van way back in 1978 in Oregan USA. His original vision—great taste with real, less processed foods, to fuse the natural with the savory, to create a great tasting, wholesome product everyone would fall in love with—continues to be the company's mission even today. (Kettle Brand, 2019) The company culture at Kettle is a special one: it is about real people who care about what they do. Each Kettle worker puts time and attention into their products, and they believe you can taste the difference in their products. (Kettle Brand, 2019) In 1982, Kettle Foods perfected it's very first bags of Kettle Brand® potato chips. Their philosophy is "to use only the freshest, all-natural ingredients to create intensely flavored, wonderfully crave-able potato chips you can feel good about eating." (Kettle Brand, 2019) In March 2018, Campbell Soup Company purchased Kettle Foods. 3 Kettle Brand Chips: "Great taste, Naturally." Currently, there are over 25 flavours of Kettle Brand chips available and they are sold in Grocery, Mass Merchandise, Club, and Gas & Convenience channels across Canada. The Kettle Brand line includes many flavours and varieties including: Krinkle Cut, Organic, 40% Less Fat, Unsalted, Non-GMO Verified and Kettle Brand Baked Potato Chips. There is a flavour and variety to suit everyone's taste. (Kettle Brand, 2019) When interviewed in a recent media report, a brand manager for Kettle Brand chips was quoted as saying: "When you open a bag of Kettle Brand potato chips, you know you're getting the best tasting, natural chips made with real ingredients by real people. We craft authentic taste experiences using only the most natural, real food ingredients, the finest potatoes, best oils and craft cooking methods." The brand also prides itself on it's environmentally sustainable business practices, starting with the fact that 100% of the excess vegetable oil that is used in the production of their chips is converted into biodiesel which is then used for fueling vehicles and emits 74% less CO2 than petroleum diesel fuel. They are also continually exploring ways to reduce their carbon footprint of their facilities. In addition, in 2019, they launched an initiative that sees them using 43% less packaging than years prior, and have also joined forces with the Pollinator Partnership, a non-profit organization that is dedicated to promoting pollinator health through education, conservation and research. Finally, Kettle Brand also prides itself on being a good corporate citizen, with employees donating their time at local area non-profit organizations, donating chips for fundraising events, and giving more than 55,000 pounds of potatoes to local hunger relief agencies. (Kettle Brand, 2019) The Marketing Opportunity: Michelle recognizes that there is a tremendous opportunity to grow Kettle Brand chips in Canada, and is excited to have been given the money to promote her brand. With that said, she also knows that it is a very competitive category with strong competitors who spend heavily on advertising and promotion. She is going to need to be very strategic in order to get the most out of the investment and reach the 3% market share target. Traditional advertising options, like TV, Print, and Radio, will not be an option. Her mind is swirling with questions: • Should she concentrate her promotional plan on a specific sku/skus, or should she use the dollars to support the entire Kettle Brand portfolio of products? • Should she approach a specific trade partner and execute a focused program at retail, or should she promote the brand across all channels and partners? • Should she concentrate her promotional plan on a specific geographic region(s) in Canada, or should it be a national campaign? • What target audience should she focus on for this campaign? Should she try to drive consumption with existing users, or try to drive trial amongst non-customers? • What product benefit(s) should she focus on in her campaign messaging? Michelle knows she is going to need the help of her advertising agency. She picks up the phone right away - they are going to need to move fast.

Question

Analysis of Your Brand AND THREE primary Competing Brands

i)Current Product Offering (this includes services), Pricing and Distribution

ii)Current Target Market & Positioning

iii)Current Advertising, Promotion, Digital & Social Media activities

a)What is their tagline?

b)What media do they use?

c)What benefits do they focus on?

d)What is their call-to-action?

e)How do they interact with consumers?

f)Examples of current advertising

Answer rating: 100% (QA)

1 There are the following product offerings of Kettle Foods and its competitors i Kettle Foods Kettle crinkle cut Kettle potato chips Jalapeno Kettle potato chips Sea salt vinegar Competitors ii Lays ... View the full answer