Sriracha: Developing the Media Plan

This activity is important because as a manager, you must be able to logically develop the optimal media plan. That plan should enable the manager to identify which portions of the market offer the greatest potential and how these segments would match the organizations strengths and weaknesses.

The goal of this activity is to demonstrate your ability to identify where and to whom to direct the media particularly when using a marketing research index.

Read the Sriracha case of the regional differences in condiments in the United States and answer the following questions about the process of developing the media plan.

Across the American marketplace, there are many condiments consumed regularly, including ketchup, mustard, and salsa. However, there are regional differences as to the extent to which consumers use various condiments. On the East Coast, there is very heavy consumption of Old Bay spicy seafood seasoning. Texas is a heavy consumption site for Rudys Barbeque Sauce, which is a clove-speckled gravy-style sauce used on a vast array of foods. While sriracha sauce is used across the nation, it is substantially more heavily consumed in California than anywhere else.

Sriracha sauce is originally a Thai product from the village of Sri Racha. It is a very hot, spicy condiment made from a paste of chili peppers, distilled vinegar, garlic, sugar, and salt. Sriracha sauce, which cannot be trademarked under that name because several competing families in Sri Racha make it, is eaten in soup, on eggs, and on burgers. It has become an integral ingredient in many other food products such as jams, lollipops, and cocktailseven sriracha-flavored potato chips. Sriracha sauce Rock brand, which is how the original and largest producer in the product category distinguishes itself, produces over 20 million bottles of the product annually.

As condiment processors develop a media plan for their respective IMCs, they need to consider several factors and evaluate different tools at their disposal. The first issue faced is to whom the brand should be promoted and which segment has the greatest market potential. Next, the brand managers and IMC coordinators must evaluate the internal and external factors influencing the media choices. Finally, the firm should assess the best locations geographically for the allocation of IMC expenditures. There are several well-developed tools and indices that can facilitate this last task.

Sriracha sauce Rock brand is going to employ an index to help determine in which regions to promote more or less heavily. Because the manager is seeking regions that are currently either very heavy or very light users of the product category, spicy sriracha pepper sauce, he is hoping to capture market share from all the competing brands. He is most likely to employ what method?

• a) Survey of Buying Power Index

• b) CDICategory Development Index

• c) BDIBrand Development Index

• d) GfK MRI Mediamark Research, Inc.

• e) Experian Simmons National Consumer Survey