Table of Contents
Executive Summary..Page 3
Situational
Analysis...Page 4
SWOT Analysis......Page 8
Marketing
Goals...Page 9
Target Audience.....Page 10
Media Usage...Page
11
Media Objectives...Page 12
CreativePage
13
Media Strategy.......Page 14
Media Execution.....Page
15
Promotions..Page
17
Budget..Page
18
Websites..Page
20
Appendix.....Page
21
Executive
Summary
Altoids has been third in the breath mint market for many years now.
Although their brand name is well known throughout the world, their new
goal is now to increase their sales by 20%. This will be done through adding
more emphasis onto the advertising budget and increasing the number of
media used. With an increase in advertising focus, it will be easier to take
market share from other companies because the Altoids name will be
spread through a media mix reaching the desired target audience of women
ages 35-54.
Our advertising team will run a pulsing campaign that will start in
January and end in December. The pulsing will be heavy in the first two
months of the year with 4 additional months being an average pulse and the
last 6 months being low months.
Situational Analysis
History
Altoids were first introduced in 1780 when Smith Kendon, founder of Smith & Co.,
developed
an exceptionally strong lozenge known as Altoids mints. The mints were originally
created
to
relieve
intestinal discomfort as well as bad breath.
Over the years Altoids changed ownership. The company Callard and Bowser bought out
Smith & Co. and was the first company to own Altoids. It wasnt until 1918 that Altoids became
in America. The lozenges were marketed as curiously strong and claimed to help rid
popular
in the stomach. Beginning in the 1920s, Altoids were sold in metal tins rather than the
poisons
cardboard
box they had been previously sold in. This really added to the peppermints charm.
Callard and Bowswer was then sold to Terrys of York in 1982, which was later taken over
by Kraft/Phillip Morris in 1993. In 2004 Wrigley of Chicago bought the Callard and Bowser brand
from Kraft for almost $1.5 billion. Wrigley has since been added to the Mars company, which was
in 1932. Today Altoids is the third most popular brand within the breath mint category.
formed
.
Situational
Analysis
Share of Market
Mars Inc.s
market share is nearly half
(47.4%) in the overall gum, mints, and breath fresheners
category. The company dominates in gum (54.7% sugarless, 67% regular) and mints (33.5%),
but takes third place in breath fresheners (18.5%), falling behind The Hershey Co. (39.5%) and
Ferrero USA Inc. (27%)
Situational Analysis
Situational
Analysis
Share
of Sales
Altoids
competition based on last years sales:
Ferrero USA Inc.s Tic Tac, which had the highest sales of $172 millions,
Hersheys Ice Breakers who was second in sales with $130 million.
Altoids was third in US sales with $97 million, and has a strong potential to catch up to
its competitors. Based on historical analysis, Altoids has been outspent by top
competitors in the past. For example, Ice Breakers has spent between $30-50MM per
year range, far exceeding Altoids spend.
Share of Spending
Altoids competition based on last years spending:
SWOT
Analysis
Strengths:
Established reputation
Iconic and unique packaging
Premium quality
High brand awareness
One of the most effective breath enhancers among its competitors
Weaknesses:
Many are unfamiliar with various flavors offered
Out-dated
Packaging is not easy to carry
Opportunities:
Money Savers: Last longer than normal mints
History in comfort: They were originally made to reduce stomach discomfort
Confidence: Fresh breath can always be a confidence booster
Threats:
Their competitors are constantly updating flavors, changing up their design, and keeping
up with modern advertising trends
The tin containers can leave dust on fingers
Altoids has had little digital presence in the past
Over 20 other brands of breath mints
Market Goals
As one of the top bad breath relievers in the nation, Altoids are now on the rise and
been estimated to increase by 55.2% by 2020 along with other breath fresheners alike
have
(Mintel).
In order to accomplish this estimated goal, we believe Altoids must increase their
distribution
in order to take second when it comes to Share of Market. This would bring their
share of market goal to 28% and their brand awareness goal to 45% rather than the 35% they
had last year. The share of spending goal has also been set to 16.9%. This percentage was
decided
by taking the total dollars spent in breath mints last year from all the different
competitors
and diving Altoids budget of 25,000,000 by that total.
Target
Audience
Altoids primary target audience reflects the companys ability to target a niche group within the
breath freshening mint market. Altoids current marketing strategies results in a target audience
of predominately
white women between the ages of 45-54. Listed below are the specific traits
and demographics
of women that are most likely to purchase Altoids with Mediamark Research
Index numbers and psychographics found from Mintel to support choosing of this target
audience.
Gender:
Women (Index:108)
Race:
Caucasian (Index: 100)
Age: 45-54 (Index: 115)
Occupation:
Professional and related occupations (Index: 117); Sales and office occupations
113)
(Index:
Location: Pacific-MKTG REGN (123) and South East (Index: 94)
Income:
$75,000- $150,000+ (Index: 139)
status: Married (Index:100)
Marital
Education: Post-Graduate (Index:124)
Children: 1 (Index:112) or 2 (Index: 103). Most likely between the ages of 6-17 (Index: 104)
10
Media Usage
Psychographics
Cable T.V: (Moderate)
Magazines:
(Heavy)
ABC Family (Index:109)
People:
(Index: 112)
CNN (Index: 108)
Vogue
(Index: 166)
Food Network (Index:108)
Fox News Channel: (Index: 105)
Internet:
(Heavy)
HBO: (Index: 101)
Priceline (Index:153)
IMBD (Index:145)
Radio: (Moderate Heavy) (Index: 111)
Urban: (Index: 117)
Broadcast
T.V.: (Moderate)
CHR: (Index: 112)
Awards-Specials
(Index: 128)
Game
Shows - PrimeTime (Index:136)
Outdoor: (Moderate Heavy) (Index: 114)
11
Media
Objectives
Based on the Ostrow Model (see appendix) and other research done for Altoids, the
suggested
reach and frequency that the company should put into place is much greater than
what it currently has.
The goal
is to use the pulsing method with a heavy to average pulse in November,
December, January, February, June, and September. These are the months of higher media
usage from our target audience.
These are the desired goals:
Reach Goals
National
Actual National Reach
Yearly:
Yearly: 65.0
78.0
Pulse: 83.0
Pulse: 70.0
National
Frequency
Goals
Actual National Frequency
Yearly: 3.0
Yearly: 2.5
Pulse: 3.5
Pulse: 3.0
Spot Reach
Goals
Actual Spot Reach
80.0
Yearly:
Yearly: 70.0
Pulse: 85.0
Pulse: 75.0
Spot Frequency
Goals
Actual Spot Frequency
Yearly:
Yearly: 3.0
2.5
Pulse: 3.0
Pulse: 3.5
12
Creative
Positioning
Statement: We will position Altoids as a powerful mint, that is the perfect go-to
in any life situation.
Tagline:
Power through life. (Life can be replaced with different words such as: interviews,
hangovers, first dates, late nights, etc.)
Reasoning:
Altoids are very powerful mints. They are so powerful that they can give you an
extra push
when dealing with any life situation. That is why we chose the tagline: Power
life. The word life can be interchanged with different words based on the kind of
through
advertisement
on display. For example, an ad for Altoids on the strip in Las Vegas will be
Power
through
hangovers. An advertisement near a college campus would read: Power
through
late
nights.
Implementing this idea would give the audience the knowledge that
anything can be accomplished as long as they have that little, red tin in their pocket.
13
Media
Strategy
The purpose of this campaign is to promote Altoids to women ages 35-54. We will due this
through pulsing. Through research we have found that our target audience likes to watch award shows.
This is one of our biggest focuses.
During the high months of January and February the target audience enjoys award shows such
as the Oscars, Emmys and Academy Awards. We find it important to advertise highly in January
leading to the award shows and also during the month of the award shows.
The average advertising months with be June, September, November and December. The
holidays are an important time to advertise due to the holidays and back to school in September. We
also chose June to be an average month to keep pulsing going throughout the year.
The low months will be March, April, May, July, August and October. In these months we will
still advertise. We will just keep it low so that then in the high months is creates a higher effect. We will
also keep website marketing high during the low months.
Spot Markets
1. Portland-Auburn, ME
2. New York, NY
3. Binghamton, NY
4. Macon, GA
5. Philadelphia, PA
6. Detroit, MI
7. Boston (Manchester), MA-NH
8. Savannah, GA
9. Pittsburgh, PA
10. Ft. Wayne, IN
14
Media
Execution
Women make up 56% of the base market for
Altoids. Since most of the budget will go
toward website
advertising, weve created a list
of websites
we would like to target, based off
of the total
population and the index number.
They are:
1. ABCnews.com: Population 13,958:
Index
144
2. Amazon.com:
91,445: 116
3. CNN.com:
29,385:135
4. eHow.com:
16,460: 120
5. HuffingtonPost.com:
24,271: 143
6. Travelocity.com: 14,900: 143
7. Wikipedia.org: 53,256: 126
8. Wsj.com:
11,981: 138
15
Media Execution
Cable has an index number of 103, meaning that 3% of homes
likely to be exposed to ads via Cable. Here are some
are more
of the top cable channels to advertise on, based off of their
population
and index numbers:
1. BET: Population 22,328: Index 126
2. Bravo: 29,401: 114
3. Cooking Channel: 27,737: 115
4. Lifetime: 38,507: 116
5. Oxygen: 18,242: 119
16
Promotions
the holiday season approaching, a big push to include Altoids as a stocking stuffer will
With
be made.
This will be the basis of the Christmas campaign.
Since
we desire Altoids to be bought consistently year-round and not just during the
holidays,
other
events will take place to promote the product, such as:
2.
3.
4.
5.
17
Budget
We
have set the 2017 budget to 25 million with a
plan to use a media mix that we believe will be highly
effective. Based on our research our target audience
uses the internet more than any other media. Due to
this fact, we have put 35% of our budget this year to
Internet/Websites.
Altoids
has had little digital presence in the past
and we believe
it is a key communication component for
success in the future. The other media methods will go
through a pulsing method throughout the year.
Broadcast TV and Magazines will be the second
highest form
of advertising at 25%. Since the target
audience is women we will be advertising mostly in
women's magazines, followed by general magazines
than mens
magazines. Broadcast TV is spent mostly
during nightly
news time for the working audience.
Cable TV at 10% and radio at 5% will be the tail
end of the advertising for Altoids. Simply to try to reach
more people.
18
Budget
19
Appendix
Established brands
High market share
Dominant brand
-.2
High loyalty brand
Long purchase cycle
Product used occasionally -.2
Simple copy
Copy more unique than comp.
Continuing [old] campaign
Product sell copy
-.2
Single kind of message
-.2
-.2
-.1
-.2
-.2
-.1
-.2
-.2
-.2
-.1
-.2
To avoid wear out: new messages -.2
Larger ad units
-.2
Ostrow Model
Marketing Factors That Affect Frequency
-.1
+.1
+.2
New brands
-.1
+.1
+.2
Low market share
+.1
+.2
Smaller, less known
-.1
+.1
+.2
Low brand loyalty
-.1
+.1
+.2
Short cycle, high volume
+.1
+.2
Product used daily
+.1
+.2
Need to beat competition
+.1
+.2
Adv. to older consumers/children
Copy Factors That Affect Frequency
-.1
+.1
+.2
Complex copy
-.1
+.1
+.2
Copy less unique than comp.
-.1
+.1
+.2
New copy campaign
+.1
+.2
Image type copy
-.1
+.1
+.2
More difficult kinds of messages
-.1
+.1
+.2
Older messages
-.1
+.1
+.2
Small ad units
20
Lower ad clutter in media mix
Compatible editorial environ.
Attentiveness (to media) high
Continuous schedule campaign
Few media used in media mix
Opport. for media repetition
-.2
-.2
-.2
-.2
-.2
-.2
Totals
Marketing Factors That Affect Frequency: 0
Copy Factors That Affect Frequency: -0.4
Media Factors That Affect Frequency: -0.1
0+-0.4+-0.1= 2.5 Frequency
70 x 2.5= 175 GRP
Appendix
21
Appendix
22
Appendix
23
Appendix
24
Appendix
25
Appendix
26
Appendix
27
Appendix
28
Appendix
29
Appendix
30
Tana Bolinger
Kathryn Hyer
Calli Sprenkle
Courtney Black
Emmaline Neubert
Ariel Vogan
31
32