Marcom Koko Krunch - tendo have been focusing on their twin product line strategy: Handheld Consoles PDF

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tendo have been focusing on their twin product line strategy: Handheld Consoles and Home Consoles. For example, Game Boy, Pokemon Mini, Nintendo DS, Nintendo 2DS and Nintendo 3DS are in the handheld consoles product line. As for their Home Consoles, it includes the Color TV Games, Super Nintendo Ent...

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MKTG 1266 Marketing Communication LF01 Lecturer: Miss Ong Chin Choo- Robinson LF01 - Group 16

Group Members Student Name

RMIT Student Number

Sean Tan Min Xuan

S3809586

Malcolm Wong Yew Weng

S3809731

Wong Hui Ying, Jessica

S3809721

Cheryl Low Si Ying

S3809256

Ching Jun Quan

S3833871

Loh Hui Yen

S3809237

1

Executive Summary

The purpose of this report serves to provide an IMC plan of our chosen product, Koko Krunch, one of the core products under the Nestlé. Before addressing the IMC plan; internal, situation and competitor analysis are conducted, and key strategic decisions are identified. There are steps taken to increase branding for Koko Krunch such as stabilising the company’s internal processes, researching on its SWOT analysis, practices and then through increasing promotional and advertising means to extend consumer reach. The goal would be to increase revenue by 10%, where funds would be reallocated to research and enhance product development. Having strong industry competitors like Post Select, Tesco and Kellogg’s, Koko Krunch has to differentiate itself from others by identifying the problems and opportunities the brand could take. One main problem would be its poor advertising and promotional status. By heightening exposure, Nestlé can leverage on this advantage to bring Koko Krunch into the consumer's evoked set. Having positioned themselves at a higher price but richer in health nutritional benefits, Koko Krunch needs to strongly establish the category need of consumers, so it is better able to improve its brand awareness, brand attitude and to find out what drives purchase intentions. One model the team has adopted is the behavioural sequence model (BSM), this allows for easier dissection of the brand personality to better suit our campaign target audience.

Koko Krunch’s aim is to increase market share by 10% through an increase in revenue by 15%. The estimated campaign budget is $1,551,305 in the time frame from September to February (6 months). The IMC plan includes a brilliant creative strategy and media strategy for Koko Krunch’s brand new advertisement. For your easy viewing, the strategy is dissected and implemented in the media plan. The other IMC activities include the development of the Official Nestlé Mobile Application, an Ecommerce platform and Google Responsive ads (Digital banners). This report also included a system for evaluation and control to ensure IMC campaigns are tracked by research, some measurements include data like comments, likes, sales. This report is concluded by the demonstration and solving of possible corrective action scenarios.

Table of Contents 1

Executive Summary

2

2

Current Situation Analysis

5

2.1

3

5

Background Research and Analysis

2.1.1

Background of Industry and Company

5

2.1.2

Macro Environmental Factors

5

2.1.3

Competitor Analysis

6

2.1.4

Consumer Behaviour Analysis

8

2.1.5

Brand Item Analysis

8

2.2

SWOT Analysis

2.3

Key Marketing Problem or Opportunity

Key Strategic Decisions

9 10 10

3.1

Marketing Objectives

10

3.2

Communication Objectives

11

3.2.1

Category Need

11

3.2.2

Brand Awareness

11

3.2.3 3.2.4

Brand Attitude Brand Purchase Intention

12 12

3.3

Positioning

13

3.4

Campaign Target Audience

13

3.5 3.6

Campaign Budget Brand Personality / Character

16 17

4

Integrated Communication Brief (Creative Brief)

17

5

Creative Strategy

18

5.1

Development of Creative Idea

5.2 Detailed Explanation and Mock-ups (Tangible Executions) across all Media 5.2.1 New Media 6

Media Strategy 6.1

Justification of Media and Media Vehicles Selected

18 18 23 23

6.1.1

Traditional Media

23

6.1.2

New Media

25

Media Objectives

28

6.2

6.3 Media Plan / Schedule & Social Media Content Calendar 7

18

Other IMC Activities / Elements / Tools 7.1

29 29

Selection, Integration & Detailed Explanation / Mock-ups of Other IMC Activities 29

8

Evaluation and Control 8.1 Outline Evaluation / Tracking Techniques 8.2 Demonstrate Possible Corrective Action Scenario

33 33 34

References

35

Appendices

41

2

Current Situation Analysis

2.1

Background Research and Analysis

2.1.1 Background of Industry and Company As one of the biggest brands of Fast-Moving Consumer Goods (FMCG) companies in the world, Nestlé has a very strong presence with regards to the food industries in the world. Initially, Nestlé used to only sell children’s cereal, but they have quickly diversified into chocolates, coffee, soup, yogurt, water and frozen food. Based on a research (Statista 2020), The breakfast cereal industry is growing in recent years with value sales expected to rise at 3% current value CAGR over 2020-2024 (Figure 1). In our IMC plan, we will be focusing on the breakfast cereals industries, in specific the Nestlé Koko Krunch cereals.

Figure 1: Revenue in the Breakfast Cereal Market (Statista, 2020) Started with the foundation of the Anglo-Swiss Condensed Milk Company, Nestlé has now developed into a nutrition, health and wellness company. Its product portfolio is segmented into seven main categories, offering products ranging from baby foods, chocolate and cereals to coffee, ice cream and other nutritional products. Along with its manufacturing facilities and various joint ventures, the company has business operations worldwide. Its dynamic presence has allowed Koko Krunch to gain exposure in several global countries (specifically) in Southeast and Middle-East Asia like Singapore, Malaysia, Japan and Bangladesh.

2.1.2 Macro Environmental Factors Social Cultural Factors: Due to the increasing standards of living and based on a research (Health Promotion board 2020), the Health Promotion Board have been actively promoting living a healthy lifestyle.

This has led Singaporeans to search for healthy and delicious food and snacks that could be included in their lifestyle and diet. Therefore, Nestlé Koko Krunch has appealed to the masses as it promotes itself as not only a healthy snack with vitamins and minerals, but a delicious snack as well. Technological Factor: The brand has decided to utilize newspapers and the Internet as its primary tools of advertising and sales promotion because both of them have a wider customer reach and can penetrate any area quite easily. Brand sends direct mail to users regarding any relevant information and offers. Based on our sources (Nestlé, 2020) Nestlé Koko Krunch are also Halal-certified therefore Muslims consumers are able to purchase it. Environmental Factor: Singapore has been trying very hard to encourage its people to practice recycling and saving the environment. This has garnered positive response from its people and people are starting to realize the environmental impact. Based on a research, millennials are more likely to spend on sustainable goods (Koh, 2018). Therefore, in response to this, Nestlé Koko Krunch has created the packaging that is made from recycled materials. Nestlé aims to make 100% of their packaging recycled by 2025 to prevent any of the packaging ending up as litter at landfill or in the oceans.

2.1.3 Competitor Analysis Direct Competitors Koko Krunch

Blueberry Morning

Coco Pops

Chocolate Crisp

Price

$5.65 per 330g

$5.58 per 383g

$6 per 400g

$6.45 per 500g

Company

Nestlé

ConAgra Brands

Kellogg Asia

Tesco

Product

Company

28.7%

21.3%

17.4%

2.2%

10.4%

21.3%

17.4%

2.2%

Children

Young Adults

Children

Children

Shares* Brand Shares** Target Market Distribution

Supermarkets Supermarkets such as such as Fairprice, Giant, Fairprice, Giant, and Sheng and Cold Siong Storage Online platforms such as Lazada and RedMart

Online platforms such as Lazada and RedMart

Supermarkets Supermarkets such as such as Fairprice, Giant, Fairprice, Giant, and Sheng and Sheng Siong Siong Online platforms such as Lazada and RedMart

Online platforms such as Lazada and RedMart

*Refer to Figure 2.1 *Refer to Figure 2.2

From this table, we can see that our direct competitors are Coco Pops as both the products target the same group of people, which is mainly young children.

Figure 2.1

Figure 2.2

Indirect Competitors: Other brands has launched a wide array of breakfast options such as cereal drinks, granola bars and cereal bars to cater to consumers’ convenience of having a quick breakfast fix.

2.1.4 Consumer Behaviour Analysis What

Recognition

Information

Evaluation of

Search

Alternatives

Purchase

(Healthy

Postpurchase Behaviour

cereals,

(Search online

(Comparing

Chocolate

for information,

competitors

(Consumer

flavour, suitable social media)

such as

will re-buy

for kids)

kellogs, POST

the

brands)

products, give good reviews about the product)

Who

Mainly children and teenagers between age 6-14 years old. Both male and female. People of all incomes are able to enjoy our products.

Where

Supermarket, convenience store, online platforms such as RedMart, Lazada.

When

Can be consumed at any point of the day, but we would recommend consuming it for breakfast.

How

Media Advertising -

Social media

-

Television ads

-

Public transport ads

Word of mouth

2.1.5 Brand Item Analysis Product

•

Koko Krunch is one of the most popular food item from Nestlé Breakfast cereal that has a rich chocolate taste Main ingredient used is whole grain Nutritional product packed with several vitamins and minerals

•

Has an intensive global distribution network

• • •

Place

• •

Price

• • •

Promotion

• • • •

2.2

Available at supermarkets: Fairprice, Giant, and Sheng Siong Available at online platforms: Lazada, RedMart and company website Costs $5.65 for a box of cereal (330g) Koko Krunch adopts a profit-oriented pricing policy to generate maximum profits Despite that, prices are still on par with its competitors Koko Krunch adopts an extensive marketing policy to promote its brand name and slogan Makes use of newspapers, the internet and direct marketing (mails) as primary tools of advertising and sales promotion for wider reach Ad campaigns are plastered on billboards at places with high human traffic Offers bundled packs with toys

SWOT Analysis

Strengths

• • • • •

Weaknesses

• •

Opportunities

• • •

Threats

• • •

Wide distribution channel Brands itself as a healthy snack Brand is well recognised. Nestlé Healthy Kids Programme - focus to provide nutrition education to adolescents Koko Krunch is awarded the Health Promotion Board (HPB) healthier choice logo Nestle has not been doing active marketing to reach out to its target audience. Relies on its older consumers instead of reaching out to new consumers Product is in line with the current trend of leading a healthy lifestyle. Government is also encouraging people to buy healthier snacks for consumption. Educate the consumers about the raw ingredients used to produce Koko Krunch There are many big brands selling breakfast cereals with very competitive prices. Price of raw ingredients is rising. Transportation charges have increased over the years.

2.3

Key Marketing Problem or Opportunity

Problem Due to the rapid growth of breakfast cereal brands, Koko Krunch is facing intense competition in the industry. Hence, it is challenging for the brand to differentiate themselves and prevent brand switching in the competitive environment. Besides, with numerous renowned brands and a diverse range of products owned by Nestlé, the brand has not been doing substantial advertising campaigns and promotional activities for Koko Krunch as compared to other product lines. The frequency and exposure of advertising campaigns to engage consumers are relatively low, therefore resulting in little to none brand recall of Koko Krunch for the product category among consumers. Opportunity According to Euromonitor International, there is an increasing demand for breakfast cereals in Singapore (Euromonitor, 2019). As the consumers in Singapore are getting more health conscious, Nestlé will emphasize on the benefits of consuming the healthier choice certified Koko Krunch through traditional and digital media advertising. Being a brand that consumers are highly aware of, Nestlé can leverage on this competitive advantage to engrave Koko Krunch into the minds of consumers whenever they think of breakfast cereals. With the heightened and high frequency exposure, this would be a good opportunity for Koko Krunch to expand outreach to a wider range of target audience.

3

Key Strategic Decisions

3.1

Marketing Objectives

Firstly, the main purpose for this campaign is to increase Koko Krunch’s brand share by 15%. Although the Nestlé company ranks first (28.5%) in the competitive landscape for breakfast cereals (Figure 2.1), this number is forecasted to decline in subsequent years. Moreover, despite the triumph of Nestlé, Koko Krunch as an individual brand is only achieving 10.3% of brand shares in the market (Figure 2.2). Hence, this marketing campaign is fixated on achieving top-of-mind-awareness (TOMA) for Koko Krunch while maintaining Nestlé's stance as the top company for breakfast cereals.

Secondly, Koko Krunch seeks to heighten brand loyalty amongst parents, the main decision maker for purchasing breakfast cereals. This can be measured through the computation of total repeated purchases which we aim to increase by 20% in small increments over the period of 18 months (12-month marketing plan and 6-month of post campaign period). Lastly, a plan to increase Nestlé's net profit margin for Singapore by 10% from SGD 467 million to SGD 515 million, given that every SGD 1 of sales contributes SGD 0.40 towards the net income. With the excess profits, we can then utilize it to fuel growth by acquiring new equipment or invest in technology and software to increase business efficiency.

3.2

Communication Objectives

3.2.1 Category Need Encouraging daily consumption of breakfast among children will not only ensure their energy and daily nutrients intake, but also allow them to perform daily tasks better, while reducing their risks of becoming obese. According to a systematic review of the benefits of breakfast cereal consumptions, (PeterWilliams, University of Wollongong, 2014) a study in the report shows that in 33,205 children and adolescents, it is calculated that, compared with low or children that does not consume breakfast cereals, high consumers had a lower mean BMI by 1.13 kg/m. Another research done to show if parents recognize the health risks of child obesity (Debra Etelson, Department of Pediatrics, New York Medical College, Valhalla, New York2012), 78% of parents would be “quite” or “extremely” concerned about excess weight vs. 76% about sunburns and 67% about too much television. With that understanding, the aim here is to convey knowledge to at least 80% of KoKo Krunch’s existing and new consumers so that they understand that by having KoKo Krunch as a cereal breakfast in the morning, not only does it help their children meet the daily energy intake they need but also understand the health benefits of consuming KoKo Krunch in the long run.

3.2.2 Brand Awareness Nestlé has strong brand awareness among consumers when it comes to breakfast cereal brands, and Koko Krunch itself retains top-of-mind among existing consumers, especially

millennials and children. Through this campaign, we hope to increase the brand recognition for Nestlé’s Koko Krunch by educating consumers of the health benefits of consuming this cereal by providing the main message - “providing essential nutrition while indulging in the delightful taste” in advertisements. Therefore, the aim is to increase and retain brand recognition and top-of-mind awareness in consumers’ minds among the competition by 25%.

3.2.3 Brand Attitude Storing reminder and assurance in consumer’s minds that Nestlé’s Koko Krunch, as a brand about key health benefits of the product increases brand image and hopes to portray that it's all about the consumers’ needs and preferences. By ensuring product consumption will support growth Koko Krunch is fulfilling the utilitarian needs of the consumers. To increase and influence consumer preference positively towards Koko Krunch through product differentiation, Koko Krunch to create a fun and exciting campaign that will also enhance the brand equity through a message-driven approach which will be further discussed later in the report.

3.2.4 Brand Purchase Intention The campaign will emphasize the message of getting Koko Krunch to be the kickstarter of their day and a source of energy for our main target audiences, children aged 4-12 years old through the communication channels. However, parents are the ones that have the purchasing power; hence we are going to use relatable events in their lives as it will stimulate feelings and changes in attitudes towards Koko Krunch. Through this campaign, we hope to influence consumers and create preference for Koko Krunch to be purchased more frequently and achieve a 10% increase in revenue, leading to 15% increase in brand market share.

3.3

Positioning

Figure 3: Positioning Map of Koko Krunch Against Direct Competitors Positioning describes how a brand is different from its competitors and where, or how, it sits in customer’s minds. Aside from Koko Krunch, there are a plethora of breakfast cereals available in the market. Some of which are present in the consumer’s evoked set. With the intention to establish Koko Krunch presence in the consumer's evoked set, Nestlé must position itself differently from its competitors. For Koko Krunch to establish their product firmly among the evoked set of products considered by most target consumers when making a purchase decision, it is essential to adve...