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Iams Media Plan

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I recently graduated from Penn State University with a degree in Advertising and a minor in Business. I completed a semester long media plan for Iam's brand dry dog food. I completed the media plan and presentation with a group of three other students during the Fall semester of my senior year.
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  • 1. IAMS MEDIA PLAN
  • 2. TABLE OF CONTENTS I. Executive Summary 3 II. Situation Analysis 4- 27 III. Creative Strategy 28-31 IV. Promotional Strategy 32-35 V. Media Objectives, Rationales, and Stategies 36-46 VI. Appendix 47-51 2
  • 3. Executive Summary The purpose of this media plan is to promote Iam’s Dry Dog Food using both offensive and defensive strategy. The Iam’s brand has been distributing premium dog food since 1946. Currently Iams products are distributed throughout 70 countries worldwide, and still continue to grow. They currently hold the number two position in the dog food market with 11% market share. By developing a family-oriented campaign for Iams, we were able to define a target audience. The target audience includes adults ranging in ages 18-54, focusing in on families that own at least one dog. We predominantly targeted the whole country with special emphasis on the South and West regions due to the amount of dog ownership. They tend to be active and often engage in sports. They are above average impulse shoppers, who tend to be brand loyal. The year-long Iams campaign stresses the idea of healthy food for your dog. By keeping the Iams brand current position of healthy food products for pets, our campaign hopes to receive the support of brand loyal Iams customers as well as exhibit a clear message to dog owners around the nation. The overall message endorses the pet being considered a part of the family by getting the same sufficient nutrition as their owners. The campaign will attract our target audience of 18-54 year olds who participate in lots of social and outdoor activities. The promotional strategies within our campaign are aimed to attract social, active and energetic consumers who tend to be impulse buyers. Both promotions created are positioned to not only raise the sale of Iam’s products but, also help consumers in their aid for convenience. “Double Your Deal” is a regional promotion that will debut in September of 2007 and will remain valid until October. This promotion will give people who shop in retail stores throughout the nation, a chance to receive two 4 lb. bags of Iams dry dog food for the price of one 4 lb. bag of equal or lesser value. Our second regional promotion, “Two Good” is a chance for Iam’s customers to win a trip to Orlando, Florida. Any customer who purchases a bag of Iams has a chance to enter and win the grand prize to Florida, along with many other prizes such as an Apple I-Book computer or, an I-pod Nano. “Two Good” will start in February 2008 and end in March. The media plan is focused mainly on a national level but has some spot markets located in specific areas to help support both our offensive and defensive strategies. The primary medium that we chose to use was television with an emphasis on sports TV programs. The months with the heaviest advertising in our plan are September, October, February, and March. This is mainly because we have our promotions fall during those months. Our baseline numbers per month are a frequency of 3, a reach level of 70, and a total of 210 GRP’s. With such a large target audience and a strategically thought out media plan we plan to achieve the best numbers with the least amount of money. 3
  • 4. Situation Analysis 1. Current Marketing Factors Iams Brand History In 1946 Paul Iams founded the Iams Company. In 1950 he came up with his first premium dog food, Iams 999. Paul Iams created The Iams Company in Dayton Ohio in 1956. Iams Plus was an improvement of the brand created in 1961 and referred to as the pet food industry’s first complete diet because of its lack of additives. Iams distributed this product through dog breeders, kennels, and veterinarians using word of mouth to spread the high quality of the product. The 1970’s held many strategic changes with help from a new and promising manager named Clay Mathile. Costs were increasing in the dog food industry, but Iams refused to use cheaper ingredients and risk losing their unique brand. In 1973, Iams was selling at a loss, which threatened the company but gave Mathile an opportunity to buy 50 percent share of the company. Mathile bought a quarter-page ad in Dog World magazine and promoted the product at dog shows. By 1975, the company was no longer in the red and distribution increased worldwide. By 1979 sales doubled twice after Mathile changed the dog food’s appearance to appear like the more traditional pellet-shaped dog food. The Iams Company soon outgrew its Dayton headquarters and built a new plant in Lewisburg, Ohio. With a new brand, national distribution, growing facilities, and skyrocketing sales, the company was doing very well. In 1981, Paul Iams retired and sold his half of the company to Clay Mathile and his wife. Iams became more efficient with newly hired managers and the creation of a board of directors. Sales by 1982 had grown to at least $10 million as the whole pet food market was experiencing great power. With a rising general interest in health food, more consumers were turning to better quality food for their pets. Iams continued to sell through veterinarians and breeders with sales growing quickly in the 1980s. Clay Mathile's growth strategy inspired the company’s expansion in manufacturing capacity. Iams updated its plants and built a new factory in Aurora, Nebraska in the 1980s. The annual production capacity doubled between 1985 and 1989 with Iams extending their sales overseas as well. In 1988 the company launched its first mass-market advertising, spending an estimated $8 million on its campaign. By 1990, the company's annual sales were estimated at $210 million and profits were growing at 25 percent. Consumers paid more for Iams premium quality and their profits were increasing. 4
  • 5. Tom McLeod became the company’s new president in 1990, as many new premium brands entered the market. With Iams’ success being copied, the company had to increase its awareness. They began to contact consumers through direct mail, and attempted to reach them with public service ads. In 1993 Iams advertised in newspapers with the slogan, quot;If you're in the market for the best pet food, get out of the supermarket!quot; The ads listed area pet stores where Iams brand pet foods were sold but competing directly with supermarket brands was not easy. The following year, Iams launched a direct-mail campaign to build brand loyalty and contact new pet owners. Using a personal approach generated an overwhelming response and accumulated an essential database of concerned and loving pet owners. In 1996 the company changed its target slightly. Iams buyers were typically high- income families usually with purebred animals. The new campaign tried to reach the millions of pet owners that adopted animals from shelters. Iams sponsored a Pet Adoptathon, which attracted 700 participating animal shelters and aired public service ads concentrating on the joys of having a pet. They used with flyers and samples, but the ads themselves were not intended to sell the pet food. By 1996, Iams's sales were estimated to stand at more than $300 million. By 1997, Iams started construction on its first overseas plant. The plant, located near the Netherlands, was to manufacture Iams from raw materials gathered in Europe, cutting the company's import costs, and speeding up delivery of European orders. The company remained privately held, financing its growth through its profits. In September 1999, The Procter & Gamble Company (P&G) acquired Iams and joined P&G’s Health Care global business unit. Iams sales have been rising rapidly for a century. The lower-priced brands, although threatening, had not yet hurt the company thanks to loyal customers, an expanding base of U.S. pet owners, and potential markets abroad. Iams seemed to have created and maintained the formula for success. How Iams Differs From Competition For many years, Iams has differentiated itself from competitors by producing quot;nutritionally completequot; pet foods with heavy reliance on animal protein, instead of the grain proteins found in many of its competitors' products, giving Iams the edge. Iams gained its reputation with the founder’s unique blend of healthy nutrients in 1946. By the end of the 1970’s, Iams changed the look of the dog food to appear more appetizing to dog owners as well as their pets. In 1994, Iams added omega-3 to the dog food and emphasized its importance in their Smart Puppy brand for brain development. Today, the dry adult dog foods contain complete nutrition, with more chicken, egg and fish than the leading competitors (Iams.com). Iams brand contains high quality ingredients to help dogs live a healthy life. Iams dry dog foods are prepared for dogs in three age groups puppy, adult and mature adult. 5
  • 6. Owners with puppies can chose recipes from the Smart Puppy Formula with small and large breed choices. Adult dog owners can choose recipes such as weight control, chunks and mini chunks, lamb meat and rice formula, large breed formula and an adult small and toy formula. Mature dog owners have their own special blend called Active Maturity. Along with their recipes, Iams competes for a larger chunk of the market by differentiating their products and revitalizing their brand. As the pet food market has become saturated with new products for nutrition and convenience demands, Iams works to stay ahead by distinguishing their brands packaging to emphasize the main qualities of Iams such as healthy diets, less free time and consumer preference for one stop shopping (Iams.com). In 2000, Procter & Gamble distributed its premium Iams brand to 25,000 new retail outlets. Moving the premium brand to mass distribution strengthened the consumer’s reliance on retail stores and convenience in one stop shopping. Since their move, Iams dry dog food went up 8 percent in dollar sales and 5.6 percent in unit sales. Iams currently holds the No. 1 spot in food, drug and mass, excluding Wal-Mart, according to Information Resources Inc. data. Market Size The market forecast for US retail sales of pet food shows a steady increase, likely due to the increase in pet ownerships. Currently, 62% of US households own a pet according to figures from the National Pet Owners Survey conducted by the American Pet Products Manufacturers Association, Inc. In 2008, the US pet food market is forecast to reach $17 billion in value, representing a compounded annual growth rate of 3.7% from 2004 (umassd.edu). Brand’s Current Sales, Market Share, Awareness, Goals Iams brand dry dog food currently accounts for $1.4 billion dollars and a volume of 166 million (ACNielsen). Since Iams was bought in by Proctor & Gamble in 1999, it claims to be the # 1 pet food brand in the U.S., with around 11% market share (pg.com). In 1985, Iams was about $50 million in sales with 200 plus employees in three major locations. At the end of 2001, its sales were over $800 million with more than 2,000 employees worldwide. Iams is seeing record sales because of its entry into the mass market (iams.com). Procter & Gamble LLC required a nation wide, in-store vehicle and brand communication solution to increase awareness and promote the recent addition of the 'Iams-Good for life' brand of pet foods (www.talonch.com). This method of communication helped pump the company's growth. The basis for the promotion was to enhance and inform dog and cat owners of the variety of health benefits tied into each of the two segments of the brand. 6
  • 7. The Iams program was a success, fitting right into the time frame and budget. The promotion as a whole produced awareness, increased sales and communicated the core benefits and commitment of the Iams brand to the consumer. The resulting benefits of this promotion allowed the Iams brand to maintain a segregated position in retail allowing for ease of SKU identification and overall brand presence. In 2006, Iams teamed with 1,900 animal shelters to find loving homes for more than 328,000 orphaned pets. They distributed 100,000 Iams Adoption kits and were able to publicize the Iams brand at the same time. Since the program was launched, it has facilitated the adoption of more than 1,000,000 dogs and cats while promoting their brand at the same time. Iams Product Life Cycle When Proctor and Gamble acquired Iams in 1999, they took was best known as a premium pet food and transformed it into a fast growing sub-category and springboard for new products and services (www.prtm.com). P&G took the existing success formula and used their superior distribution capabilities to increase Iams presence in retail outlets by 50 percent. The company then emphasized its innovation efforts on creating dog foods that would lengthen the pet’s lifetime. Focusing on health benefits, P&G transformed the brand into one that addresses customers’ fears about their pet’s well being. P&G’s strategy saw powerful results with a new and growing health-conscious dog food subcategory. In addition, P&G now has credible options to expand offerings under the Iams brand to include health services and insurance for pets. P&G did more than simply move pet food up the lifecycle maturity curve. Management understood the lifecycle position of the pet food market and figured out how to best reframe the product and explore other early lifecycle opportunities (www.prtm.com). Geographic Breakdown The Iams Company sells two brands, Iams dog and cat foods, and Eukanuba. Iams has manufacturing facilities in Lewisburg, Ohio; Aurora, Nebraska; Henderson, North Carolina; and a plant for its international division in Coevorden, the Netherlands. The company distributes its pet foods in more than 70 countries worldwide. Iams also maintains a pet research center in Lewisburg, Ohio, where veterinarians, chemists, and nutritionists study dog and cat diets on laboratory animals raised as pets. Occupying a booming segment of the pet food market, Iams in the late 1990s was one of the fastest growing pet food companies in the world. Today, the pet food industry is experiencing changes as the overall demand for pets has increased. The number of pets per person is alarming with 377.8 millions pets versus 300 million people as of fall 2006. 7
  • 8. Level of Consumer Involvement The Iams Company is planning to significantly increase its ties to animal shelters across the country with a new national grassroots campaign starting in May (Strategy Magazine 2007) This year, a P&G spokesperson Joyce Law says they are putting all of their effort behind the campaign. Nationally, the campaign will drive pet adoption with a specially designed website, and with POP on retail shelves that promotes the brand's partnership with the CFHS. Adopters will get an Iams Starter Kit, including food, coupons and information about pet insurance. For every adoption, Iams will donate four pounds of food to that shelter. quot;Building the relationships with the shelters in the local communities is a really important grassroots effort,quot; Law says. But rest assured it's also a means to inject a more personal, warm and fuzzy glow into the Iams brand. quot;We're promoting the equity of the brand through the program,quot; she says. With consumer trends resembling becoming less passive and more active, the Iams Company as a part of P&G has begun weaving themselves into viral communities, blogs and other new ways to interact online. 2. Advertising/Creative history Brands positioning history Ever since the company first opened in 1946, IAMS has been advancing their formula to give animals a complete diet. In 1961 Iams Plus was formulated by the company and was considered to be the pet food industry's first complete diet since it did not require any extra additives. The pet food was only distributed through breeders, veterinarians and kennels and throughout the 1960’s it was only being distributed in five Midwestern states. In 1970, Paul Iams was introduced to Clay Mathile who had previously worked for the Campbell’s soup company. Mathile took the initiative to start a marking campaign for Iams. In 1975, Mathile was promoting the Iams products through dog shows as well as taking a step further to published a quarter page ad in Dog World magazine. The 1980’s were a big booming period for the Iams Company. While Iams began to manufacture new products such as cat food and puppy food, the company made a conscious decision to increase their advertising strategy by distributing education pamphlets about their products. Circulation of the Iams products started to flourish over- seas by the mid-1980’s. This lead the company to spend an estimated $8 million to launch its first mass-marketing campaign to further promote their name. 8
  • 9. The 1990’s brought some competition with new brands of dog and cat food entering the market. New company president Tom McLeod realized that with all the new competitors, Iams would have to step up their advertising strategy. As a result, Iams began to contact customers through direct mail as well as reaching them through public service advertisements. The company realized that it was becoming difficult to only sell their products through veterinarians and breeders. Iams came up with a campaign that swayed customers by offering a free bag of Iams or Eukanuba in exchange for an empty bag of a supermarket brand cat or dog food using the slogan, “If you're in the market for the best pet food, get out of the supermarket!quot; In 1994 Iams started to contact potential new customers by launching a direct-mail campaign. The campaign-distributed newsletters that were personally addressed to the pet itself informing customers about dog and cat nutrition. Addressing the newsletters to the pet itself ensured customers that Iams was a company that thought of the pet as a family member. The campaigns lead to an anticipated brand loyalty amongst its customers as well as earning the company with a successful response. Iams was seeing that their customers were generally individuals that came from upper middle class families. In order to generate a larger fan base, the company decided to launch a new campaign in 1996. Iams sponsored a Pet Adoptathon, which was aimed to commemorate pet ownership. The Adoptathon featured about 700 animal shelters across the United States and Canada. The promotion gave Iams a huge marketing potential and a large amount of publicity. In the spring of 2000, the drastic decision was made to start distributing Iams products in grocery stores nationwide. The company needed to strategically market their product to not only inform their customers of this decision but to try and bring in new potential consumers as well. The angle on the campaign was to endorse the benefits of their pet’s diet in which only Iams products would be able to provide. The company decided to advertise in certain media outlooks that would ensure them that they would be able to reach their target audience. With a budget of no more then $20 million, Iams was being advertised on network television, pet magazines and pet editorials. Advertising was also done within grocery stores by using in-store displays as well as in-bag coupons. In more recent years, Iams has been known to use taglines such as Iams. Good for life; Good for Today. Good for Life. The tagline goes right along the Iams Company mission to “enhance the well-being of dogs and cats by providing world- class quality food.” 9
  • 10. Brand differentiation The Iams Company was always in some way unique whether it was through their distribution or formulation of products. In the 1960’s Paul Iam’s created a formula that exampled a pet’s complete diet. Iams Plus was a new kind of pet food that was high in protein but yet low in hurtful minerals. At the time, Iams was the only pe
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