Group project for International Marketing course at Graduate School of Management SPbU
Strategy
Let's look at different elements of the strategy implemented by "Bolthouse farms" in USA market.
First of all, what do we know about carrots? They are:
- salubrious
- rich with beta-carotene
- rich with potassium
- positively influence eyesight
...- "SO WHAT? "
Practically, all this information does not have an impact on American's consumption patterns.
At the same time, carrots is one of the most favorite vegetables of Americans. So, we can conclude that problem lies not in the lack of sympathy toward the product, but somewhere else. Where? Researchers have discovered that carrots were associated only with the notion "healthy", when fast-food was strongly stuck to "funny". And "fun" always won over "healthy"! So problem was in a consumer's perception.
So, under the given circumstances, how to enhance the carrots sales volume? How to make people love carrots even more if they already love it very much?
Researchers have turned to the kitchens and fridges to find out what was the "hottest (most popular among family members) place in the fridge".
So those areas where all the tasty stuff - snacks, cookies, beverages etc. is usually located were in a big favor. And carrots were usually at the bottom in a boxes where children don't look when they're hungry, and which are used by parents only when they cook. Researches called it "vegetarian death box". So, until carrots will be there, dirty and raw, there is no way consumption patterns to be changed.
So №1 job is to drag out the carrots from the death box. How?
First, use all the characteristics that beneficially distinguish carrots from the rest of the vegetables. Carrots have:
- interesting cone shape
- funny color
- it crunches!
So, it is perfect for snacks! And with all the healthy benefits it gives, we can easily win the competition in the market of quick snacks. The goal: to undertake "carrot jump" - make all country nosh with carrots.
All the characteristics above gave us a clue to target audience: we chose kids and early teenagers. Indeed, color, crunch, cool shape - everything these guys like. Moreover, this audience have inclination to eat the fast-food and not to spend much time for the meal.
Problem. No brand. Carrots are no fun, just boring vegetable. No brand, no emotions. No fun. We had to get emotions! Through getting the brand.
Baby carrots branding.
If we are moving to the market of snacks, we should prepare to compete with other snacks. How? Take all the instruments that fast food implementing and use it for our own goals.
Ex.: Cheetos, Doritos
Package: futuristic design, hideous cartoon characters, graphic rubbish etc. pic
Merchandising: move from vegetables shelves and put carrot snacks together with other snacks. Also, there were vending machines placed at schools and colleges.
Today it is crucially important to use marketing communication tools such as SMM and mobile apps. Bolthouse exploited it mostly to entertain the audience, deliver FUN. The Xtreme Xranch Kart video game powered completely by carrots crunch has been launched. Together with the mobile app.
And, the last, the choice of media campaign. Same logic: futuristic video games, hideous characters etc.
The strategy turned out to be very successful. It provoked vibrant public reaction and boosted the sales.*
Now we should look at this strategy in terms of applicability for the Russian market. Should it be somehow adjusted? Should we target kids? In States kids and teens are more independent, have more pocket money, receive driving license earlier.. Are there any other differences we need to take in a consideration?
* Crispin Porter + Bogusky for Bolthouse farms - Eat 'em like junk food <http://thisisnotadvertising.wordpress.com/2012/01/09/crispin-porter-bogusky-for-bolthouse-farms-eat-em-like-junk-food/>
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4 comments:
Dear "Baby Carrots" team, thank you for very interesting posts! I do like idea targeting children, because junk food is a real problem for modern society and especially for young generation, which is dependable on all this tasty, but totally unhealthy stuff. Moreover, choosing children as main consumers may solve perception issues, because I'm not sure that I would pay much for carrot snack, but if it concerns children, many parents will be ready to replace junk food with something cool and healthy for their children. Of course, it's my personal opinion, but still carrots are treated as something very common and acceptable in Russia . In this case will you focus your promotion on parents (because they pay) or children (because they consume)? Don't you want to choose a funny cartoon character to be associated with your brand (as we discussed during the lectures, it's a popular advertising approach in Russia)? Where will you sell "Baby carrots"? Do you want to place vending machines in schools and universities?
Actually our primary target group are still young independent people who seek for healthy snack options as we described previously. The kids snack is a recent idea that we will probably use as a possible future development. But we are glad that you like it. About focusing - we would actually have to focus on both parents and children. We need to persuade the children that they want it and threfore they will ask their parents to buy it for them. ¨But also we have to convince parents that it is healthy and the best option for the snacks for their children. To draw children´s attention we can use their favorite cartoon heroes as you suggested. We could include small figures, stickers or cards to every pack so children could collect them and exchange it with friends (I used to love that when I was a kid!!) ...What do you think?
Good work! Actually I agree with your idea of targeting children as a secondary customer group directly or through their parents. Parents are always concerned about healthy food for their children and they will be interested that their children will eat babycarrots instead of junk food, the accent of healthiness should be made to attract them. As for russian children, they have enough pocket money in general to buy junk food, so it's possible to make them switch to shakedowns. Of course, I agree that it's necessary to create special package with little bonuses to attract their attention.
Daria and Alena, thank you!
It's a great question - eventually, what is our target group?In States Bolthouse farms have decided to target kids. We've been analyzing Russian market in order to choose the best segment and understand whether children could turn to our paramount target. We suppose there are substantial differences between these Russian and American segments. Kids in Russia are less independent, more stuck to parent's guiding. Moreover, they either eat at home the meal their parents have cooked or they are fed at school's cafes. The latter usually includes full value main dish which satisfies hunger just fine. So in Russia this segment is quite isolated and should be reached indirectly (through parents).
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