CM317- Ruffles AdPlan-FINAL
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Transcript CM317- Ruffles AdPlan-FINAL
ADVERTISING PLAN
Yongyi Cai
Ami Chan
Michelle Choi
Zach Halperin
Ruffles is a potato chip brand that was introduced into the
market in 1958 after its acquisition by the Frito company
that later merged with H.W. Lay& Co. The chip with wider
crinkles is designed to create sturdier chips that can hold
more dip and do not break easily. [1]
MARKETING PROBLEM
Our Primary research indicates that consumers not only are unaware of the
variety of flavors Ruffles’ offers, but they also notice the brand’s lack of
social media presence and marketing initiatives. We believe that Ruffles’
insufficient advertising hinders its revenue growth.
MARKETING OBJECTIVE
The campaign objective is to expand Ruffle’s target audience and increase
brand awareness by promoting the new, bold flavors that appeal to men
while also emphasizing that Ruffles chips’ durability makes it the ideal
chip for on-the-go consumption.
SITUATION ANALYSIS: CATEGORY REVIEW
DEFINITION [2]
COMPETITION [3]
Potato chips are defined as a snack that provides
physical and mental satisfaction to consumers
who desire small portions of food during meals.
Following a growing tendency of all-day snacking
culture, potato chip producers innovate different
flavors, ingredients and packaging to fulfill
consumers’ needs.
First Competitor: Nuts
Second Competitor: Tortilla Chips
Potato chips remain the most popular but nuts and trail mix
have experienced a large growth.
The growth of the nuts and trail mix segment is 53% while the
growth of the potato chips segment is 34.8%. The competition
is growing among the categories [5]. (Shown in Fig.2)
STATUS
The category has a growing tendency since 2008
and is forecast to continue growing. From 2010 to
2013, the category has a $364 million increase in
growth [4]. (Shown in Fig.1)
Fig.2
Fig.1
SITUATION ANALYSIS: TRENDS AND IMPLICATIONS
TRENDS[6]
IMPLICATIONS
Increased awareness of
product cost
People want to spend less money on potato chips.
Increased need for premium
products
People want chips that come in sophisticated packaging
to entertain and impress their guests.
Increased health concern
People want to buy single-serving sizes in order to eat
potato chips in moderation.
Increased want for on-the-go
consumption
People want resealable packaging to increase the ease
of consumption.
Decreased consumption of
healthy options
Despite their desire to lead healthy lifestyles, more people purchase
regular versions of potato chips over baked and reduced fat options
because they see chips as an indulgence.
Increased substitution of
meals with snacks
People want food that is easily consumable on-the-go because they may
not have time to eat a full meal
SITUATION ANALYSIS: BRAND ASSESSMENT
PRODUCT[7]
The thick ridges of RUFFLES
provide various flavors of
sturdier and crunchier potato
chips that hold more dip. The
chips are also less prone to
breakage in the bag.
Original Chips
Crispy Fries
Deep Ridged
Oven Baked
Reduced Fat
Chips and ranches
PROMOTION
Vote For Ruffles® Next Flavor Fever[8]
•
•
Challenges fans to vote for their favorites
each day in an elimination bracket-style
tournament to win a lifetime supply of
ruffles. Ruffles increased incentive that
maximized the reach and engagement of
its campaign.
Creating bolder flavors to attract male
consumers.
PRICE
1.5oz: $1.09
Pricing is similar to Pringles but
cheaper than cape cod.
DISTRIBUTION (PLACE)
•
Supermarkets hold the biggest
market share of 43.8% for
potato chips and other retail
channels (supercenters,
convenience stores and
warehouse stores) take up
53.2%.[9]
One of the biggest growth drivers
is that convenience stores sell a
variety of grab-and-go options for
consumers.
• Drug Stores are estimated to
reach $866 million in 2013,
representing the smallest
market share at 4%.[10]
Strengths
•
•
•
Huge Market Share
Under the umbrella of Frito-Lay and PepsiCo
(comparative advantages in brand positioning)
Strong brand image of study chip texture that
avoid cracking inside of bags.
Opportunities
•
•
•
•
•
Weaknesses
•
•
•
Decreased sales and market share[11]
Lack of commercials and advertisements
Consumers are unaware of the hearty, bold
and grill-inspired flavors that cater to male
consumers.[12]
Situation Analysis:
SWOT Analysis
Promotions of flavors and new commercials
Millennials increased snacking
Trend: single-serve and “on the go” packaging
Creating more bold flavors that cater to male
consumers. [13]
People are using snack food as meal
replacement[14]
Threats
•
•
•
•
Higher nutritive value products
Competitive Pricing
Rising supermarket shelf fee
Trend: Increasing health concerns and diet
habits
SITUATION ANALYSIS: PRIMARY
COMPETITORS
RUFFLES
[15]
Cape Cod
2.8
PepsiCo, who owns Ruffles, leads the potato chip segment
with nearly 60% market share. Its sales increased nearly
3% from 2012-13.
Utz
3.7
Ruffles
10.2
PRINGLES[16]
Ruffles and
Primary
Competitors,
27.7
Kellogg Co., who owns Pringles, maintains 11.3% market
share due to its acquisition of Pringles from Procter &
Gamble in February 2012. Kellogg Co.’s sales increased to
4.4% in 2012.
Pringles
11
Others, 72.3
Market Share of
Potato Chips in 2013
Utz and Cape Cod[17]
Utz, Cape Cod and private-label products both declined
in sales, but their market share was minimally impacted.
BRAND:
RUFFLES
PRINGLES
UTZ
CAPE COD
PRICE PER 2.5 OZ. BAG
$1.49
$1.29
$1.58
$1.09
(at City Convenience stores)
COMPETITIVE ANALYSIS:
PRINGLES
“YOU DON’T JUST EAT
‘EM”[18]
CURRENT POSITIONING
MARKET SHARE[19]:
Pringles: 11%
vs.
Ruffles: 10.2%
To
people
who
lead
spontaneous lifestyles, Pringles
is a fun potato chip brand that
provides a variety of unique
flavors to enliven any event.
PRESENTED BENEFIT
Resealable packaging makes onthe-go consumption convenient.
STRATEGIES
Website promotions[20], uses social media platforms
such as Facebook to connect with “fans” build
brand relationship.
STRENGTHS AND WEAKNESSES COMPARED TO RUFFLES
[+] Had the highest increase in brand sales compared to its
competitors in 2013 476.1%.[21]
[+] More mass media advertising and promotions[22]
[+] Neatly packaged in tubes with a resealable plastic lid
convenient for people who want to eat on-the-go.
[+] Offers single-serving size options[23]
[+] Recognizable logo people associate the Pringles brand
with the cartoon that has a large mustache.
[+] Lower price than the ones of primary competitors.
[+] Less salt and grease compared to most potato chips.
[+] Stronger social media presence Approximately 10 times
the amount of people are “talking about” Pringles on Facebook
than are “talking about Ruffles (72,756[24] > 7,816[25]).
[-] Not ideal for social situations because of packaging
people need to take turns to eat the chips.
[-] The packaging makes it difficult to retrieve the chips at the
bottom of the container.
[-] Pringles break more easily than Ruffles’ chips
[=] Both Ruffles and Pringles have a wide range of unique
flavors.
COMPETITIVE ANALYSIS:
CAPE COD
“HOME OF RIDICULOUSLY GOOD CHIPS!”[26]
CURRENT POSITIONING
To health-conscious people who love
snacking, Cape Cod is the all-natural
potato chip brand that provides fresh
flavors with hand-stirred kettle-cooked
chips.
PRESENTED BENEFIT
Offering customers healthier, natural
chips made with little processing.
STRENGTHS AND WEAKNESSES COMPARED TO RUFFLES
[+] Viewed as a premium brand of kettle chips and the chips are cooked in
kettles.
[+] More emphasis on healthy, high quality ingredients (Hand-selected potato,
oil and salt)[27]
[+] Family oriented: use the name of a popular tourist attraction more
relaxed brand image
[+] Lower price more diverse consumer base (ex. Income)
[-] Less variety (only focus is kettle chips and there are limited flavor options
compared to Ruffles)
[-] Less market share
STRATEGIES
Facebook promotions for its fans.
Ruffles:
10.2%
Cape
Cod:
2.8%
COMPETITIVE ANALYSIS:
UTZ
“UTZ ARE BETTER THAN NUTS!”[28]
CURRENT POSITIONING
To people who love diverse options in
their snacking life, Utz is the potato
chip brand that provides consumers
non-GMO potato chips with a variety
of flavors.
PRESENTED BENEFIT
Consistently provides consumers with
a wide variety of premium products
that are hand-made and without
artificial additives.[31]
STRENGTHS AND WEAKNESSES COMPARED TO RUFFLES
[+] Have a variety of flavors and different lines which focus on different
customers. (ex. organic line, Grandma cooked line)[29]
[+] Family-owned company that has a long brand history since November
1921 that gained loyal consumer groups.
[-] Prices are relatively high (ex. 10o.z Original Ruffles: $3.89, Utz: $5.99)[30]
[-] Low consumer awareness (products marginalized in supermarket and not
common in vending machine)
[-] Packaging and website design are not attractive
[=] Ruffles and Utz both lack a wide variety of commercials and print ads
consumers have low awareness of their product diversity
STRATEGIES [32]
Utz frequently uses social media, such as Twitter
hastags, to build its relationship with customers.
Utz also uses product placement in TV shows
(Mad Men, Modern Family).
Ruffles:
10.2%
Utz:
3.7%
TARGET AUDIENCE: SECONDARY
RESEARCH OCCUPATIONS
DEMOGRAPHICS
[33]
AGE: Most users are either millennials between 18-24 years
old (125) or middle age people 45-54 years old. (121)
GENDER: Most consumers are Female aging 25- 54(112).
The difference between male and female usage is bigger
in Ruffles Light as females are more health conscious.
In order to diversify its market mix and attract more male
consumers, Ruffles changed their packages and launched
new products (new bold flavors) that target male consumers.
[2]
EDUCATION: Most users either graduated high school (115)
or are attending college (104)
ETHNICITY: A lot of users speak Spanish at home (121)
[34]
Most users are working in Natural Resources,
Construction(122) or sales and office
occupations.
PSYCHOGRAPHICS[35]
Lifestyle- Media Consumption:
MAGAZINES: Eating Well magazines (140),
Fitness (121), Game & Sportsman and WWE
Magazines (208).
INTERNET: They are also frequent browsers of
NBA.com (144), CBSSports (133) and Yahoo
en Espanol (171) websites.
TARGET AUDIENCE: PRIMARY
RESEARCH
ONLINE SURVEY: 15 questions, 55 respondents.
Results: The make up of the respondents were 55% female and 45% male.
54% of the survey takers said that they are unsatisfied with Ruffle’s nutrition values but most of the
people are very satisfied with its Taste, Texture and Price.
66% of the people indicate that they are not satisfied with the variety of flavors Ruffles offers.
42% of the survey takers usually purchase regular size (1.5oz) of potato chips.
Purchase Location
Preferred Chips Type
14%
Supermarket
30%
50%
12%
8%
Fig.1
Vending
Machine
DrugStores
Convenience
Store
* See Appendix A
Original
7%
Baked
26%
Most Important Quality
53%
Fig. 2
Reduced
Fat
Kettle
Cooked
Price
19% 19%
18%
Texture
21%
23%
Fig. 3
Variety of
Flavors
Packaging
FOCUS GROUPS: INTERVIEW RESULTS
One-On-One Interviews: 10 questions, 20 people in the focus group
Why do they CHOOSE Ruffles?
Sarah T, 19: “It’s signature ridges can hold a lot of dip.”
Kenny L, 25: “Ruffles has recently put out some really great and unique flavors.”
Brian L, 20:“ I like that Ruffles chips don’t crumble inside the bag and usually stay in big pieces.”
Why do they NOT CHOOSE Ruffles?
Matthew C, 19: “It’s original flavor is too salty, but I like their cheese flavor.”
Alfred C, 20: “I haven’t seen Ruffles commercials anywhere and they need to produce more
flavors.”
Annie H, 19: “I don’t like the packaging and I also try to
Interviewees’ main suggestions for Ruffles to do better:
1) Expanding the sales outlet in vending machines, especially within colleges.
2) Marketing the chip’s new flavors
CONSUMER INSIGHTS
After combining and analyzing our secondary research and primary research:
Even though people are health conscious, they would pick the original flavor over
Baked or Reduced fat because they see chips as an indulgence.
73% of consumers eat potato chips during social gatherings.
People are always on-the-go and snack throughout the day
23% of consumers are most concerned with the variety of flavors chip brands have
to offer while 66% of them think that Ruffles doesn’t have enough flavors.
Survey takers and interviewee suggest that:
“They need to change the packaging and add more chips in each bag.”
“Soften the chips’ texture a little”
PROBLEM TO BE SOLVED
Ruffles lacks an effective brand relationship with
consumers as they are unaware of the variety of
flavors Ruffles offers (they have 15 flavors of chips
and 4 flavors of dip).
KEY INSIGHT
The key insight we uncovered is that most male consumers
think that Ruffles’ flavors are ordinary, and do not know
Ruffles’ new bold flavors. So when they shop for potato
chips, they overlook Ruffles.
POSITIONING STATEMENT
To 18-37 year-old potato chip consumers,
Ruffles is the durable potato chip brand that
won’t crumble during your everyday
adventures.
ADVERTISING OBJECTIVE
Through our advertising campaign, we will focus on expanding Ruffles’ target audience
by increasing consumers awareness of the variety of new, bold flavors. Our use of
multimedia advertisement will also enhance Ruffles’ brand image and foster a stronger
brand relationship with potato chips consumers.
Emphasize how Ruffles’ family-sized bag option (which accounts for 80 % of their
sales) is perfect for social eating.
“ Ruffles won’t crumble” will be the recurring slogan on every campaign and
advertisement to emphasize Ruffles’ sturdy chips and how this enables people to
consume on-the-go.
Multimedia outlets include Television, Internet and Magazines.
We aim to increase our target audience by positioning Ruffles chips as the best option for onthe-go consumption and increase awareness of the new, bold flavors they have to offer the
market.
CREATIVE STRATEGY
WHO IS THE ADVERTISING
TALKING TO?
The advertising is talking to 18 to 37-year-old male and female potato
chip consumers. This group is most likely to purchase and indulge in
potato chips for on-the-go consumption.
WHAT SINGLE BENEFIT SHOULD
THE ADVERTISING PROMISE?
That Ruffles chips are unlikely to crumble inside the bag so they’re ideal
for on-the-go consumption.
WHY SHOULD THE CONSUMER
BELIEVE YOU?
Ruffles has the popular brand image of study chips that won’t crumble
inside the bags. It is also the second most successful brand in the potato
chip category.
WHAT DO YOU WANT THE
CONSUMER TO THINK AFTER
SEEING THE ADVERTISING?
WHAT DOES THE CONSUMER
THINK NOW?
Ruffles’ durable potato chips are consumers’ ideal option to satisfy
hunger on-the-go. Also, Ruffles chips’ wide array of flavors can satisfy
everyone making them the perfect snack for social gatherings.
The consumer only thinks of ridges when they hear Ruffles. They are not
aware of the wide range of flavors offered.
CREATIVE STRATEGY: BRAND
PERSONALITY
NEW SLOGAN
“Ruffles won’t Crumble”
NEW TARGET AUDIENCE
Potato chip consumers between 18-37 years old: men who want bold flavors and women who are less likely to purchase
unhealthy snacks such as potato chips. (Ad should empower women and make them feel like they can “handle” the bold flavors
too.)
BRAND PERSONALITY TRAITS
Versatile, fun, relatable, humorous, bold, adventurous and spontaneous.
CREATIVE GUIDELINES
The general tone of the commercials and campaigns will be modern, playful, bold and adventurous
Each commercial or video will end with the crunching of Ruffles chips and our slogan “ Ruffles won’t Crumble”.
The advertisements will highlight the durability of Ruffle’s chips and the wide variety of flavors.
VISIONS AND GOALS
Since we are targeting consumers between the age of 18- 37, our new campaign will be more relevant to
millennials and generation x who enjoy fun and humorous ads. The ads will feature a fun-loving tone that relates
to the fun, new flavors we are promoting. The slogan will be“ Ruffles won’t crumble,” as we demonstrate Ruffles
chips’ durability, which is perfect for on-the-go consumption, as well as the new flavors which are ideal for social
snacking.
MEDIA PLAN
WHEN
WHERE
Due to the growing tendency of American’s all-day
snacking culture, people are more likely to consume
potato chips at any time year-round. Our advertisements
will be placed on various media throughout the year.
However, we found that most potato chip consumers
heavily consume sport magazine and sport websites. So
will focus more on marketing efforts during the Spring
and Summer when the weather is nice and people are
looking to have fun outdoors.
MAGAZINE
Magazines allow us to target consumers’ interests and to
provide in-depth brand messages. Magazines also have a
long life span because they often occupy waiting rooms for
a long time, and are not as frequently published as
newspapers are.
Our print ads will be featured in the following magazines,
which appeal to the interests of potato chip consumers,
such as automobiles, family, and leisure activities.
Target Audiences[37]: Street Rodder (121), Four Wheeler
(119), All You (118), Autoweek (118), Ski (115), FamilyFun
(113), Saltwater Sportsman (113), Parenthood (106), and
Boating (106).
Our campaign is focused on reaching the 18-37
demographic. We chose magazines, internet and television
as our media vehicles to delivery our messages to our
target audience.[36]
TELEVISION
Most potato chips consumers have a relatively high media
consumption on television . However, our interview shows that
most of our interviewees said they hardly see Ruffle’s commercial
on television channels. Airing our Ruffles creative commercials
enables us to reach a large and diverse audience within our target
range. By effectively marketing Ruffle’s different flavors and unique
ridged chips, Ruffles is able to solve its market problem. Since our
target age range is more likely to partake in late night activities
such as watching sports game, late night talk shows or watching
primetime television with friends or family, we would like to air our
commercials primarily during the 8pm to12am time slot.
Target Audiences[38]: MTV Tr3s(204) Fox Soccer Channel (180) NBA
TV (150) MTV (154) Discover Fit & Health (143) ESPN Classic(131) #
The Hub (182) Vh1 (159) Centric (151)
MEDIA PLAN
INTERNET
Ruffles does not have a strong online presence (13,000 Twitter followers for Ruffles[39] compared to 92,800 thousand Twitter
followers for Pringles[40]).
Our ads will be featured on the following websites, which focus on various interests of potato chip consumers, such as sports,
discounts, and music.
MyPoints.com (119), ShopAtHome.com (113), Farmville (109), foxsports.com (110), Coupons.com (108), NASCAR.com
(108), Yellowpages.com (107), NBA.com (107), iVillage.com (106), and Ticketmaster.com (105)
#RufflesWon’tCrumble Cause-Marketing Campaign using Social Media
Our microsite will promote our cause-marketing campaign with the Make-A-Wish foundation, and feature stories of the children
who are staying strong during their battle against their illnesses. Our campaign will aim to raise money for the Make-A-Wish
foundation. Make-A-Wish grants the wishes of children diagnosed with life-threatening medical conditions in the United States,
and believes that doing so will be a life-changing experience for those children.[41]
Social Media Marketing is a fast and easy way to connect with the modern day consumer while being cost-efficient.
Every time someone tweets a picture of a bag of Ruffles chips with the hashtag #RufflesWontCrumble, Ruffles will donate a
portion of their sales to a child’s cancer hospital.
We support their belief that children should stay strong, and not crumble, during their battles against their illnesses. Therefore,
we want to join in Make-A-Wish’s mission to make the wishes of those children come true because the theme of staying strong
is consistent through our cause-marketing campaign.
Ad #1: T.V. Ad: A Day at the Beach
CREATIVE EXECUTION
Content:
Our premier television ad opens with a scene
of 3 guys and 2 girls, in summer attire, stocking a
car for a day trip to the beach. They are packing 3
big bags of Ruffles (one flavor is original, one
flavor is molten hot wings and one flavor is chili
cheese fries). The camera zooms in on the various
flavors of Ruffles and shows the crew putting the
bags of chips in the backseat. The scene then
shifts to the beach with the car driving on rugged
terrain. Then, we see our crew unpacking the car.
The chips are in prime condition and the crew
begins eating together while laughing and
throwing around a football. The commercial ends
with the Ruffles logo and a voice-over of “Ruffles
Won’t Crumble.”
Why This Ad Works: From Ruffles’ official
Facebook page: “Great friends, delicious
food, and plenty of time to kill: That’s Ruffles’
definition of a good time.”[42]
This stance complements our ad’s
image of friends enjoying time together
while eating Ruffles together.
2.
1.
3.
4.
5.
Intended Message:
Ruffles potato chips are perfect for social gatherings because of the
variety of flavors and family-sized bags. Their sturdy chips are so good for
on- the- go consumptions because they can easily survive a car ride
without breaking.
CREATIVE EXECUTION: Digital Ad
We will launch a social media campaign on Ruffles’ Twitter,
Facebook and Instagram accounts asking customers to post
interesting pictures of them eating Ruffles at different
occasions. The 10 posts that get the most shares and likes will
have a year of unlimited supply of Ruffles’ chips. It will also
introduce Ruffles’ cause-marketing effort for cancer patients. A
microsite of this campaign will also be created to allow
donations from consumers. At the end of the 3-month
campaign, Ruffles will donate $1 for each hashtag
(#RufflesWon’tCrumble) that consumers post. This will
significantly increase Ruffles’ social media presence by getting
#RufflesWon’tCrumble trending across online platforms while
increasing consumer awareness of the variety of flavors Ruffles
has to offer.
Ruffles chips’ packages
will also have stickers that
advertise the new social
media campaign
CREATIVE EXECUTION
Ad #3: Print Ad
Content
Our print ad will feature a torero holding up a Ruffles chip in front of an
angry bull. We hope that consumers who stumble upon our ads in
magazines will stop to look at the ad because of its humor. Obviously, a
Ruffles potato chip could not withstand the force of a bull but we think
readers would understand our overarching theme- that the chip is
durable. The use of our hashtag #RufflesWon’tCrumble below the ad
also serves to tie in our print ad with our social media campaign.
Intended Message
Ruffles potato chips are strong and durable. They will not
crumble as easily as traditional non-ridged chips.
INDEX
1
Snacks.com
2
Mintel 2014
3
Frito Lay’s Website
4
MRI+
5
Pringle’s Home page
6
Utz Official website
7
Thefind.com
8
Wish.org
9
Utz marketing strategy
10
Yahoo contributor network
11
Facebook accounts for the brands
12
Cape cod website
13
Wikipedia
14
Answers.com
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BIBLIOGRAPHY
"Interesting Facts About Pringles Potato Crisps that Will Make You Say "Yum!"." Yahoo Contributor Network. Web.
20 Apr. 2014.
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