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DiGiorno

DiGiorno. Team Incredible. Executive Summary. Nestle took over DiGiorno in 2010 DiGiorno has remained the top-seller of frozen pizza since Frozen pizza market has become cluttered, so DiGiorno needs to continue to hold the consumer’s interest. Industry Review.

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DiGiorno

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  1. DiGiorno Team Incredible

  2. Executive Summary • Nestle took over DiGiorno in 2010 • DiGiorno has remained the top-seller of frozen pizza since • Frozen pizza market has become cluttered, so DiGiorno needs to continue to hold the consumer’s interest

  3. Industry Review • Overall, Americans eat about 23 pounds of pizza per year • Restaurant, take out, or grocery store • Pizza sales are increasing at a rate of 10% annually • Growth: In 2005-2009, DiGiorno achieved a22% growth increase. • Mintelpredicts that it will continue to increase at about 4% annually during 2011- 2015. (Information from Mintel’s Pizza at Retail- US June 2011)

  4. Industry Review • Decline: In 2010, sales decreased by 1.1%. • Mintel expects a 0.3% decline for 15-24 year-olds between 2011-2016. • Results in an unfavorable future in younger demographics for pizza companies. • Changes: PerMintel’s custom consumer survey, two thirds (65%) of households with one child have eaten a frozen pizza in the last three months, compared to 72% of households with two or more children. • Families with more kids tend to be the drivers for pizza sales. (Information from Mintel’s Pizza at Retail- US June 2011)

  5. Industry Review Market Share DiGiorno 29.4% Red Barron 12.5% Tombstone 10.9% California Pizza Kitchen 6.1% Jack’s 5.7% • Trends : • The South and Northeast hold the largest percentage of adults who eat frozen pizza. • DiGiorno pizza and sides, such as: “Pizza & Wyngs” and “Pizza & Cookies” • Families with more than three kids show a far greater tendency to eat pizza that involves some kind of preparation (Simmons).

  6. Marketing Mix “New” DiGiorno options • Combination packages: • Pizza & Wyngz, Pizza & Cookies and Cheese Stuffed Crust • Large portioned pizzas with various toppings and crust types and flavors • Small single portion pizzas with various toppings and crust types and single pizza in a 200 calorie portion Price • Compared to competitors, DiGiorno’s prices are similar to other high quality frozen pizza options • Pizza & Wyngz, Pizza & Cookies and Cheese Stuffed Crust • Although DiGiorno seems like the highest priced pizza, it promotes the quality of delivery pizza in their frozen entreesSmallsingle portion pizzas with various toppings and crust types and single pizza in a 200 calorie portion • Supermarket/foodstore:14% increase with $3,360 in sales in 2010 • Super-centers/warehouse: 38% increase with $1,746 in sales in 2010 • Drug Stores: 50% increase with $50 million in sales in 2010 • Other: 50% decrease with $106 million in sales in 2010

  7. Consumer Analysis • Current frozen pizza heavy users tend to be parents of large families, single men and teenagers. • Heavy users are also teenagers,  young singles (particularly men) and children old enough to prepare their own meals. • Traditionalists: • Under the age of 55 • Not loyal to any one brand of frozen pizza. • They are less interested in innovations such as high-protein, international flavors or gender specific. • Most likely to indicate that compared to a year ago they are buying more pizza that is on sale and/or the best price. • They are most interested in an affordable, frozen or take out pizza that is made with common ingredients

  8. Target Audience Primary Target • Families with at least 5 or more persons in the household • Work full time (30+ hours) • $75,000+ income • These demographics are those who are already frequently purchasing DiGiorno. • DiGiorno will be an easy solution to create a family social meal. Secondary Target: • Males aged 18-24 • At minimum hold a high school diploma • At minimum work part time • DiGiorno is going to be their go-to social meal with friends. This age group is 20% above average  in terms of choosing frozen pizza.

  9. Consumer Media Habits • Newspapers: • Americans spent 26 minutes on average reading the newspaper per day in 2011. • It is a great source of reaching a wide variety of audiences. • Internet: • In 2010-2011, 77%  of 10,000 adults aged 18+ used the Internet more than an hour a week for something other than checking their emails. • Using keyword search optimization will keep DiGiorno at the top of the consumer’s mind while they search  “frozen pizza,” “frozen meals,” “pizza” or “easy dinner” for instance. • Television: • The average American spends four hours and 39 minutes watching television per day. (eMarketer)

  10. Uncontrollable Variables • Psychographics/Lifestyle: Public perception of frozen pizzas range from thinking the food is downscale, unhealthy and low • Seasonal Sales:DiGiorno’ssales do not fluctuate too intensely from season-to-season, but sales are best during the winter and back to school months. • Economy: The economy is in a transitioning phase, therefore this could reflect on sales of frozen-pizzas • Dependentonwhetherpeople will feel like splurging more, or if staying in is best for saving money. • Groups: Single women, older couples and middle to old people purchase DiGiorno frozen-pizzas less than other groups. • Regions: Sales for DiGiorno frozen-pizzas vary depending on region. There are many opportunities for growth.

  11. Objectives Marketing Objectives • DiGiorno’s ultimate goal: • Increase market share from 29.4% to 31.4% within 2012-2013. • This represents $723 million of total sales. • In doing so, coupon promotions will be incorporated once a month for either two for $2.00 and two for $1.50. Advertising Objectives • To reinforce the perception that DiGiorno is the highest quality of frozen pizza, “It’s not delivery, It’s DiGiorno.” • To encourage current users to make multiple purchases instead of single purchases. • To increaseawareness of how DiGiorno is the highest quality of frozen pizza for . • To remindcurrent users of brand loyalty, instead of attempting to attract the non-users.

  12. Media Objectives Continuity Pattern: Pulsing High months: Winter months, popular sporting months, back to school months (January, February , March and August) Low months: April, May, June, July, October, November and December Desired Reach and Frequency Levels High months: Reach: 94 Frequency: 13 Low months:Reach: 70 Frequency: 2

  13. Budget Allocation • High month allocation: $29,330,400 ($7,332,600 per month for 4 months)Winter months, popular sporting months, back to school months (January, February , March and August) • Low month allocation: $20,451,200 ($2,556,400 per month for 8 months)April, May, June, July, October, November and December

  14. Media Strategy • Television • Network • Budget: $9,215,600 Percent: 18.40 • Cable • Budget: $3,145,400 Percent: 6% • Spot • Budget: $2,091,600 Percent: 4% • Although the internet has become a new source to watch videos, television is still the most popular way to watch videos despite the growth of sites such as YouTube and Hulu (Mintel). • Advertising DiGiorno on television will be an appropriate medium because ads for staple versus luxury products are more accepted to viewers. This is especially important for our secondary target audience, since men have been found to be more open to television ads and more engaged with them. • If a single man sees our ad, he might be more receptive to the message

  15. Media Selections • Radio • Budget: $2,278,200 Percent: 4.60% • According to Arbitron radio market rankings for spring 2012, the top  markets for radio listeners in the South and East Central regions are: • Dallas-Ft. Worth,  Houston-Galveston,  Atlanta, Detroit, Miami-Ft. Lauderdale-Hollywood, Tampa-St. Petersburg-Clearwater, Charlotte-Gastonia-Rock Hill, San Antonio, Cincinnati and Cleveland. • Based on the ratings,  we have decided to use these areas to  advertise to our consumers. Since each market has different top genres, radio spot advertising will vary per DMA.   • Magazine • Budget:$2,243,400 Percent:4.50% • Consumers have to purchase magazines, so they are more likely to pay attention to content such as ads.(Mintel)

  16. Media Selections • Newspaper • Budget: $15,889,500 Percent: 31.89% • Print advertising has the next greatest reach after television most notably in RoI where almost half of all consumers pay attention to adverts in newspapers and magazine (Mintel). • 5% of consumers use the newspaper as a primary source when checking for sales ads and 41% check the newspaper regularly before shop. • Due to these facts, we decided to use newspapers, especially since a lot of subscribers obtain the newspaper for coupon and sales in general. • Internet • Budget: $4,067,800 Percent: 8% • We will target mother’s through social media because they are: • 5% use social media • 31% more likely than the general population to become a fan or follow a brand • 27% more likely to comment on others’ postings • 24% more likely to become a fan or follow a celebrity • 37% more likely to post photos33% more likely to post status updates • This will allow to have a strong position to be remembered, have more people follow the brand and eventually purchase the product

  17. Media Selections • Outdoor • Budget: $4,888,000 Percent: 9% • Billboards will serve as reminders for primary target and urge consumers to purchase product on the way home for dinner. • Outdoor has the highest reach and frequency. • 42% of respondents noticed ads last week • ¾ noticed billboards • 18-24 year olds are more likely to notice transportation ads • 25-54 are more likely to notice billboards • Direct Mail • Budget: $6,791,600 Percent: 13.6% • According to Ballantine Corp. stated that Direct Mail is still considered to be important in B2B marketing. Although it doesn’t hold the “flash” the latest social media trend, it still works.

  18. Team Incredible Thank you!

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