Team Strategic Marketing Plan Final

BBQ Pringles

By: Michael Davis, Joshua Catchpole, and Hollie Couch

Baker College

Product Overview

Introduction

Pringles is an American potato chip snack company that was created in 1967 by Procter & Gamble and sold to the Kellogg's company in 2011 for $2.7 billion dollars (“Pringles”, 2019). Pringles currently owns approximately 9.6% of the potato chip snack market, which makes Pringles the second largest potato chip brand in the United States (Conway, 2019). According to Thrillist.com, the 26th most popular flavor of the chip brand is BBQ flavored, as people seem to love the tangy and sweet seasoning of the chips (Kryza, 2019). In 2012, the smoky and sweet potato chips hit the market, selling in grocery stores and gas stations across the nation (Kryza, 2019). Pringles has been having an issue with sales, market position, and market value in the last few years since the popular Lay’s potato chip brand has had a majority of the market share (Conway, 2019). However, Pringle's sales and popularity can nearly rival Lay’s potato chips when the company releases a limited-edition flavor or new logo for holiday seasons. Just in 2017, Pringles released a limited-edition Thanksgiving flavor to a few select stores across the nation which increased overall sales by an estimated 1.3% and sold out within a few hours after being released (Yu, 2017). With this in mind, sales and product awareness can be boosted again during the Halloween season because a spooky limited-edition Pringles logo along with a series of murder mystery advertisements would be a massive hit with fans of the holiday.

Problems The Marketing Plan Addresses

The marketing plan is to address the untapped market Pringles finds itself in during the Halloween holiday season. Pringles has been having an issue with sales, market position, and market value in the last few years since the popular Lay’s potato chip brand has had a majority of the market share (Conway, 2019). Sales of BBQ Pringles has been slowly decreasing over recent years, as more and more flavors of Pringles are coming out. In the past, sales for the smoky and sweet treat have accounted for nearly 25% of Pringle’s overall sales, yet in recent months, it has dropped to an estimated 15% of overall sales due to the spotlight on newer flavors (“Pringles”, 2019). BBQ Pringles are getting overshadowed by limited-edition flavors and international flavors. Creating a new Halloween themed logo and murder mystery advertisements will help boost consumer awareness and improve the sales of the delicious snack.

Goals of The Campaign

The goals of the campaign are to include a boost in sales of at least 2 percent, while hopefully retaining a small percentage of those purchasers as repeat customers for other Pringles products. The idea is that if people purchase this specific flavor of Pringle and like it, they will either continue to buy that product in the future or branch out and try other products sold by Pringles in the future based on their seasonal urge that led them to purchase a Pringle product for the first time. Furthermore, Pringles held a Thanksgiving campaign in 2017 which saw a boost in sales, the goal is to do a similar product to participate in the Halloween festivities to sell in select retailers nationwide to hopefully produce a boost in sales (“Pringles”, 2019). Doing so will bring more brand recognition because consumers like to see companies that are festive and active in the holiday season.

Marketing/Marketing Communications Objectives

The main objectives of this marketing plan are to increase product awareness, improve sales of the product during Halloween, and boost customer perception of the product and the company. Boosting perceptions towards the product is an important goal, as standing out amongst 124 other flavors of Pringles and other chip brands can be a difficult task (“Pringles”, 2019). So, we are focusing on creating and inspiring a Halloween feel to the product that will match all the people who love the Halloween season. A minor objective is to increase market awareness through marketing activities and promotions because some customers may not buy BBQ Pringles or any Pringles product normally, but they may impulse buy BBQ Pringles during the Halloween month when they see a spooky Pringles can that reminds them of the holiday season. Increasing market awareness will lead to higher sales and put the product in a more competitive position within the market since that awareness may take customers away from competitors and affect their market position.

Product Profile

Product Name & Brand

"Pringles is a brand of saddle-shaped potato crisps. The Pringles brand has had an interesting ride through history and is known for its unique can that Pringles chips come in" (“Pringles”, 2019). Pringles are known as one of the most common brands of Potato Chips bought in the United States in order to snack on. BBQ Pringles are a popular snack that many people enjoy eating because of its unique flavor, and shape. During the process of creating the BBQ Pringles the company focused on proving to their customers they could create a potato chip that wouldn't break on them. When the BBQ Pringles were first introduced to the market they were called "Pringles Newfangled Potato Chips" where they eventually turned into Pringles (“Pringles”, 2019). "After over nearly a decade from the start of its development, Pringles potato chips were released to the public in the year 1967 (“Pringles”, 2019). The product started small, being sold in limited regions until became sold countrywide in the United States by the mid-1970s" (“Pringles”, 2019). BBQ Pringles have been around for a very long time that is currently owned by Kellogg's where they acquired the product from Procter & Gamble on May 31, 2011 (“Pringles”, 2019). An interesting thing about the Pringles Brand is that they named their mascot Julius Pringle, you will see Julius on the cans of the product as their logo (“Pringles”, 2019). 

Product Classifications

BBQ Pringles is a convenience good or, otherwise classified as, potato and wheat-based snack food item (Arkell, 2015). The can is small enough to fit in any cabinet or on any countertop and the colored can catches the eye of any customer who walks by it in a store. When we look into the classifications of Pringles you will be surprised at how they are made. "Pringles may be one of the most sci-fi foods of our time. So thin, so homogenous, so regular-shaped that they can be stacked perfectly, these chips are truly the food of the future" (Arkell, 2015). Most potato chips are pieces of potato that are deep-fried in order to get that perfect crunch, but BBQ Pringles are made from rice, wheat, and corn making them not a potato chip (Arkell, 2015). Pringles are actually rolled out like thin cookie dough and cut into cookie-shaped pieces (Arkell, 2015). This makes the BBQ Pringles product so unique because they are created from a piece of dough. BBQ Pringles are not considered to be potato chips because of their low potato content.

Product Characteristics

"It has been suggested that the sound that Pringles makes is very deliberate; and that Pringles are mathematically made not only for stacking, but also for the cracking sound they can make" (“Pringles”, 2019). Pringles are known to have the common characteristics of giving their customers a unique crunch when they bite into them. Many people enjoy the sound the chip makes, which gives them the willingness to continue to eat them until the can is empty. The BBQ Pringles container is very unique, and they don't come in a bag like your normal potato chips. They are stacked in the can where consumers can grab one at a time. Some common ingredients that are included in the BBQ Potato chips are dried potatoes, vegetable oil, and rice flour (“Pringles”, 2019). Your basic BBQ Pringles container is going to hold about 16 crisps (28) grams of chips where it has around 150 calories per serving (“Pringles”, 2019). With over 100 flavors, Pringles believes that adding BBQ to the mix of their potato chip makes snacking that much better (Arkell, 2015).

Distribution/Place

BBQ pringles are sold in a number of stores across the United States, including Walmart, Amazon, Meijer, Speedway, Kroger, Trader Joe’s, Sam’s Club, Costco, Tesco, Asda, and VG’s (“Where To Buy Pringles”, 2019). The product is also sold in grocery store chains and gas stations around the world, in countries such as: Argentina, Finland, Belgium, Brazil, Canada, Chile, Colombia, Ireland, Turkey, South Africa, Switzerland, Italy, Korea, Mexico, Sweden, and Japan (“Where To Buy Pringles”, 2019). The product is often in the snack and chip isles in most stores; however, some stores do carry the product in other isles to ensure the weight capacity on the stock shelves is not reached and customers can clearly see the product. BBQ Pringles is mainly sold from business to business in most countries, as it is a product that is usually sold in stores rather than straight to consumers. So, the main distribution channel is from manufacturer to wholesaler or retailer then to consumers or other smaller online retailers. However, for bulk purchases of BBQ Pringles, a customer can contact a manufacturer instead of buying the product through a realtor.

Product Life Cycle Stage of Product

The BBQ chip from Pringles is in its maturity stage, as it is a staple flavor of chip offered through the company and has been around for a number of years. Due to the age of both Pringles itself, but that of the flavor as well, we would put the product solidly in the maturity stage. The sales for the BBQ Pringle flavor have varied over the years, but it has not dropped significantly in the last few years and is still a staple in the chip/snack food industry. If sales ever start declining significantly, then it would likely be moving into the next stage of the product life cycle, but for now, they sit comfortably in the maturity state.

The Company

Company Overview

            Pringle's current company slogan is, “Make every moment pop with a taste of the unexpected” and it has been their slogan for a number of years because it encapsulates everything Pringles is trying to convey to the market through their advertisements (“Pringles”, 2019). Its goal in the snack industry is to produce and sell uniquely flavored, stackable chips to consumers at an affordable price and to provide the snack market with an alternative product to the normal, and sometimes bland, potato chip snacks. The company sells its products in over 140 nations all across the globe, including: Argentina, Finland, Belgium, Brazil, Canada, Chile, Colombia, Ireland, Turkey, South Africa, Switzerland, Italy, Korea, Mexico, Sweden, and Japan (“Where To Buy Pringles”, 2019). Average sales for pringles is nearly $550 million per year, putting it third in yearly sales behind Lay’s and Wavy Lay’s chips at approximately $1.69 billion (Conway, 2018). In the United States, there are on average an estimated 32.1 million cans of Pringles eaten each month (Conway, 2019). Pringles currently owns approximately 9.6% of the potato chip snack market, which makes Pringles the second largest potato chip brand in the United States (Conway, 2018).

Company History

Pringles is an American potato chip snack company that was created in 1967 by Procter & Gamble and sold to the Kellogg's company in 2011 for $2.7 billion dollars (“Pringles”, 2019). "Pringles is a brand of saddle-shaped potato crisps. The Pringles brand has had an interesting ride through history and is known for its unique can that Pringles chips come in" (“Pringles”, 2019). Pringles are known as one of the most common brands of Potato Chips bought in the United States in order to snack on. During the process of creating Pringles the company focused on proving to their customers they could create a potato chip that wouldn't break on them (“Pringles”, 2019). When Pringles were first introduced to the market they were called "Pringles Newfangled Potato Chips" where they eventually turned into Pringles (“Pringles”, 2019). "After over nearly a decade from the start of its development, Pringles potato chips were released to the public in the year 1967 (“Pringles”, 2019). The product started small, being sold in limited regions until became sold countrywide in the United States by the mid-1970s" (“Pringles”, 2019).

Business Description

Pringles is an American potato chip snack company owned by Kellogg’s and competing within the snack food industry. The business produces potato chip snacks and snack accompaniments; however, the potato chips are only a small percentage of potato since they are made of a potato and wheat mixture. This sets them apart from the competition because of the different flavor, texture, and manufacturing process of the product. The company is one of the largest potato chip manufacturers in the world behind Lay's and Ruffles chip brands, but it is slowly gaining more market share each year and closing the distance between its competition thanks to the financing of Kellogg’s.

Corporate Vision/Mission

The corporate vision and mission of Pringles are encapsulated by their mission statement; “Pop, Play, Eat” (“Pringles”, 2019). Pringles is a fun and different way to enjoy eating chip-like snack foods. Their goals are to be profitable while providing the top tasting chip flavors to rival others in the market and secure their competitive edge. This vision is identical for all Kellogg’s products as they are a very predominant brand in the industry and will continue to hold much of the market share in many different grocer categories for years to come.

Keytop Management People By Department

Since the purchase of Pringles by Kellogg’s the company has been fully integrated into Kellogg’s command structure and thus, the chain of command for Kellogg’s are the decision makers behind Pringles. The keytop management people are as follows:

CEO- Steven Cahillane

CFO – Amit Banati

President, Middle East, Asia, and Africa – Amr Farghal

Global Supply Chain – Alistair Hirst

President – Chris Hood

Global Human Resources – Melissa Howell

President, Europe – David Lawlor

Chief Growth Office – Monica McGurk

President, Latin America – Maria Fernanda Mejia

CLO – Cary H. Pilnick

CIO – Lesley Salmon

The above information is taken from the Kellogg's website under the section Leadership Team (“Kellogg's Leadership Team”).

Location & Subsidiaries

Pringles are a popular product that is owned by the Kellogg Company, so the company has a few mixed factories that produce both Pringles and Kellogg’s products. Pringles currently operates in five different factories around the world. These plants are located in Jackson, Tennessee; Mechelen, Belgium; Johor Malaysia; Kutno, Poland and Fujian, China (“Pringles”, 2019). Pringles became a subsidiary company once Kellogg Company had purchased them. The Kellogg Company known as Kellogg's is a food manufacturing organization that is located in Battle Creek, Michigan. These products can be purchased at stores like Walmart, Kroger, Target, and Meijer.

Brands/Major Products/ Services

Pringles is a wheat-based stackable chip that offers many different flavors to their buyers. BBQ Pringles come in different forms. The product can be bought in a wavy form that gives the chip a different crunch. It can also be purchased on a lighter side with reduced-fat that allows healthier snackers’ to enjoy the product. The company also offers a variety of packs to its buyers where they can enjoy different flavors at once. Pringles understands that customers are going to reach out to the company with questions and concerns. The company provides customer service through phone and email. The website is set up with a contact us section that allows customers to contact them about general things, product concerns, and promotions.

Product Sales History

"Since acquiring Pringles in 2012 from Proctor & Gamble CO., parent company Kellogg's has seen its snack sales grow from $4.8 billion in 2011 to $6.5 billion in the 2014 fiscal year" (Lasane, 2016). The product sales history of Pringles has been growing consistently around the world where over two-thirds of the product are being sold outside of the United States. In 2017, Pringles had sold the 2nd most potato chips in the United States behind Lay's where they generated 549.7 million dollars (Conway, 2018). With Pringle's selling in over 140 countries, the product has had an amazing sales history and is on a good track to continue its success.

Current Marketing Objective

Pringle's marketing objectives are mainly to increase market share, improve product sales, increase brand recognition around the world, and differentiate itself from competitors further through marketing activities and a streamlined manufacturing process. However, overall the company is attempting to increase market share and sales because they want to better compete with other brands like Lays and Ruffles. Pringle's advertisements and marketing activities have increased in the last few months due to the approaching holidays, which means Pringles is using the holidays as a way to improve their position within the market by releasing Thanksgiving and Christmas inspired logos and chip flavors.

Company's Current Marketing Communications Strategy and Budget

The current promotional strategy of Pringles is to target young adults through a mix of public relations stunts, online marketing, traditional marketing activities, social media marketing, charity work, e-commerce, and strategic product releases. The product packaging matches the flavor of the can and changes for each new flavor so customers can easily identify what flavor a product is based on color. There are frequent coupons, discounts, in-store sales, and free samples in many stores and online, which helps increase sales and improves customer perceptions of the company. Public relations activities focus mainly on sponsored and charity events where the company promotes healthy eating and exercise to children all over the world.

The marketing communications strategy is to create advertisements and marketing activities that focus on how unique and delicious the product is. For instance, the company’s slogan, “Once you pop, you can’t stop”, has been the same for a number of years because it encapsulates the main message that Pringles is trying to get across to its customers. Public relations and sponsored events are also a part of the company’s marketing communications strategy because it helps them separate themselves from the ‘unhealthy’ and ‘fatty food’ opinions of many consumers. It shows consumers that the company does care about the health of its customers, which is something many snack food companies struggle with due to the health trends in the country currently. Furthermore, the company holds contests where consumers can submit new flavor ideas and the winner will become an actual flavor the company produces, the flavor may be a limited edition for a short time or a permanent flavor depending on the market's response to the new product. This helps the company create more loyal customers and improve the brand image of the business, as customers become more involved in the business and see a new flavor as ‘the people’s flavor choice’. Pringles budget for their marketing communications strategy and activities is nearly $100 million a year for their digital marketing, print promotions, and TV marketing (“Pringles Advertiser Profile”, 2019). The budget is mainly for promotions and advertisements, as the company has a separate budget of approximately $50 million for public relations and charity events (“Pringles Advertiser Profile”, 2019).

SWOT Analysis

Strengths	Weaknesses
·         Differentiation - pringles is considered a unique product in the market ·         The packaging is superior to many other chip brands, as it better protects the chips from breaking or going stale. ·         Strong Brand Recognition - easily recognizable logo and product packaging ·         Research & Development - constantly coming up with new and original chip flavors that people enjoy ·         Diverse Product Line - 100s of flavors and types of chips ·         Customer Experience - fun product packaging and mouth-sized chips	·         Large company - can lose focus or have conflicting marketing messages ·         Product positioning mainly focused on young adults ·         The cost structure for product manufacturing ·         Not considered a real potato chip ·         Product packaging does have some issues due to the measurements of the can versus the size of a person’s hand ·         Products not carried in every grocery or food-related retail store
Opportunities	Threats
·         Increasing demand for convenience and easy to eat food products ·         Increasing demand for Pringle’s flavors in the international snack foods market ·         Rising demand for chip accompaniments and new flavors ·         Growing demand for healthier snack options ·         Online websites and technological advancements mean it has become easier for a company to expand globally than it ever has in the past	·         Saturated Market - many competitors in the snack market ·         Easy market entry ·         Strong Competition - Pringles is only third in yearly sales ·         Technology advancements making products cheaper and more available ·         Changing importation and exportation laws/regulations ·         Increasing health and environmental consciousness ·         Economic changes in the global market

Review Of The Industry

The Industry Definition

"The Potato Chip Production industry produces a variety of potato chip products, such as plain, favored, baked, and low-sodium chips. The potato chip was invented in 1853 and has been America's number one snack food for more than 50 years" (“Potato Chip Production Industry in the US”, 2019). In the potato chip industry, organizations will often show the popularity of their product during super bowls. Over the past 5 years, the economy in the United States has been better, which has allowed consumer spending to increase in the Potato Chip industry. With healthier options being offered the Pringles product has become one of the most popular snacks bought. Pringles, which is owned by Kellogg Company holds one of the largest market shares in Potato Chip Production in the US. The industry has shown to have several positive trends as the total revenue in 2019 increased 10 billion dollars creating 17,783 new jobs (“Potato Chip Production Industry in the US”, 2019).

Development Of The Industry

"Potato chips currently represent a predominant part of the snack food and convenience food market in countries across the globe. Owing to their easy availability and cheaper prices even for the premium products, potato chips have become popular among all age groups" (“Global Potato Chips Market”, 2019).  Since potato chips had hit the market it was important for organizations to meet the changing consumer demand and innovate their products. Potato chip companies had to adopt new products that had different flavors, and ingredients in order to stay competitive in the potato chip market. With health issues increasing around the world these companies had to offer healthier alternatives like low-fat, and low-sodium potato chips.

Segments/ Shape of Industry

"Pringles offers around 34 different flavors in the US as a part of its marketing mix product portfolio. Further, the flavors are segmented in 7 categories: Favorites, Tortillas, Loud, Xtra, Lighter Side, Limited Edition, and Stix. These categories have been formed based on parameters such as calorie content, and similarity in taste" (“Pringles Marketing Mix Strategy”, 2019). The global potato chip market is often separated by taste and flavor. BBQ Pringles are successful in their market because they offer one of the best tasting BBQ flavors in the industry.  BBQ Pringles can be bought in supermarkets, convenience stores, and independent retailers.  These potato chips are bought all around the world, but in the United States and European regions, they are the most popular (“Pringles Marketing Mix Strategy”, 2019). Markets in India, China, and Russia are on the rise and are showing a good threat to the leading regions (“Pringles Marketing Mix Strategy”, 2019).

Marketplace

Current Market Condition: Growing, Level, Shrinking

            Pringles is a part of the Snack Chip/Food market, “The Snack Food segment includes salty and savory foods e.g. potato chips, extruded or expanded products such as Cheetos and Tortilla Chips, and nuts” (“Snack Food”, 2019). Currently, there are 14 major competitors in the snack food market, including Kellogg's Company, Nestle Inc., ConAgra Food Inc., Calbee, Inc., Frito Lay's, PepsiCo, Hormel Foods, Sargento Foods, Wise, Munchos, Popchips, Miss Vickie’s, Zapps, and J&J Snack Foods (“SNACK FOOD MARKET”, 2019). The market has a high level of competitiveness, as there is a low level of product differentiation, so companies have to compete at a higher level to sell products and gain market share. The snack chip market has gone through many changes over the years since it has been created, such as changing market leaders and snack trends. The market started small in the early 1930s when the first chips and Fritos were made by Lay’s Potato Chip Company (Erbland, 2015). Since the 1930s, the market has grown and reduced in size throughout the years. In the 1970s - 1980s the market did shrink due to external political and societal factors that impacted the market and consumer needs for the item reduced as other snack foods were introduced to the market (“SNACK FOOD MARKET”, 2019).

            In the early 2000s, the market increased dramatically due to higher wages and new independent competitors entering the national market (“SNACK FOOD MARKET”, 2019). In 2016, the market grew again because of consumer need for flavored chips and chip accompaniments, a more stable economy, and easier access to international markets (“SNACK FOOD MARKET”, 2019). This caused massive growth in the market and potato chip company profits, as consumers were buying nearly every new chip flavor and declaring their favorites for life. The years prior to 2017 have seen the most amount of growth, “As the economy has strengthened, discretionary income levels have climbed. In turn, renewed consumer spending has boosted sales of potato and tortilla chips, along with nuts and seeds… Overall, industry revenue has increased an annualized 1.7% to $46.9 billion over the five years to 2019” (“Snack Food Production Industry in the US”, 2019). The market is expected to continue growing in the next few years, “Revenue in the Snack Food segment amounts to $66,847m in 2019. The market is expected to grow annually by 2.8% (CAGR 2019-2023)” (“Snack Food”, 2019). The global snack food market is also expected to grow along with the United States domestic market, “The global market for snack food is expected to reach USD 762 billion by 2024, growing at a CAGR of 5.34%, during the forecast period, 2019-2024” (“SNACK FOOD MARKET”, 2019).

Changes In The Industry

            The snack food market has gone through many changes over the years due to various external and internal factors, such as company mergers and changing consumer needs. When the industry first started, the market was small with only a few competitors selling products and attempting to increase demand for snack foods. The industry was mainly focused on selling cheaper, fatty foods to consumers because it was considered unhealthy, once in a while type of snack. However, as the years went by consumer needs have changed the industry and market scope. Until 2016, snack foods with the most flavors were popular because consumers wanted more variety to choose from and had gotten tired of eating the same flavors (“SNACK FOOD MARKET”, 2019). After 2016, chip accompaniments were popular because consumers enjoyed dipping chips in different cheese sauces and trying new products (“SNACK FOOD MARKET”, 2019). In 2018, Millennials became the driving force of a healthy snack option movement to reduce childhood obesity rates and the high number of obesity-related deaths in the United States (“SNACK FOOD MARKET”, 2019). This trend is still going on in the U.S. and has been changing the snack industry for the last year because healthy and tasty snacks are selling more than the typical fatty and oily snacks. Products such as popcorn and tortilla chips have been the most popular snack as of late because they have a lower amount of oil and fat than traditional potato chips.

            Changes to the industry also involve company mergers and independent chip makers. The major changes to industry competition include Pringles being bought by Kellogg’s in 2012, Frito-Lay’s being bought by PepsiCo, Ruffles being created by Frito-Lay’s, and Wise entering the market as an independent distributor to the eastern part of the country (“SNACK FOOD MARKET”, 2019). Technology and distribution advancements have also changed the industry, as snacks can be marketed and sold directly to consumers without the need for third-party retail sellers. Companies such as Amazon allow Pringles or Wise to sell their products online for consumers to buy directly whether it is nationally or globally. This is a major change that has impacted competition, market size, market scope, marketing strategy, and the distribution process for many companies within the snack food industry. Furthermore, advancements in robot technology mean an increased production rate for many companies that choose to replace some human workers with robots. This is a major change that can impact competition and the distribution process for many companies within the snack food industry because they will have a lower human resource cost and a faster production rate.

            The increasing salaries and raising the minimum wage is an opportunity for the industry because, “Snack foods are considered discretionary items. Therefore, when per capita disposable income levels rise, consumers are able to purchase greater volumes of snacks or trade up to more expensive products. This boosts demand and pushes up industry revenue” (“Snack Food Production Industry in the US”, 2019). This trend is expected to continue in 2019 and even further as the economy changes each year, “Per capita disposable income is expected to increase in 2019, presenting a potential opportunity for the industry” (“Snack Food Production Industry in the US”, 2019).

Competitive Landscape

Direct Competitors

Pringle’s main direct competitors are:

Lays – Sells potato chips in different flavors and owns a majority of the market (highest level of competition)

Doritos – Sells potato chips in triangles with different flavors (high competition)

Ruffles – Sells potato chips with ridges (moderate to high competition)

Fritos – sells potato chips in small squares or twists (moderate to high competition)

Funyuns – Sells ring-shaped puffed chips (moderate to high competition)

Sun Chips – Sells multi-grain potato and wheat chips (moderate to high competition)

Cheetos – Sells puffed chips that come in different shapes and sizes (moderate to high competition)

Tostitos- A Mexican style tortilla chip made for dipping (moderate to high competition)

Veggie Straws – A veggie flavored, straw shaped, puffed chip (lower competition)

            These are all direct competitors due to them selling the same product as Pringle’s, chips and chip-like snacks. All chips fill slightly different purposes, which is how brands distinguish themselves. Due to the similar products being sold and how close the competition is, Pringles would likely combat and address each competitor very similar. Firstly, Pringles can address their space in the market by studying their biggest competitors, which we consider to be Lays and Doritos, who challenge them the most in the market. Lay’s and Doritos both have trouble coming up with and releasing new chip flavors while Pringles does not. Every other company and brand that is listed does not do holiday-themed logos or flavors, so Pringles already has an advantage over them in the market. Focusing on limited edition flavors for the holidays is the best way to address the direct competition in the Snack Food market, as no other company or brand produces holiday-themed chips and flavors. Pringles can also learn more about how these competitors transport their goods or even what their deals are with certain businesses, so they can negotiate their own deals to sell their products and gain an advantage over the competition. Examples of this include giving a company exclusive access to a new brand releasing a product or priority shipping when they run out of a product.

Indirect Competitors

            Since chips are a type of snack food, their indirect competitors would be other types of snack foods, such as:

Pop Secret Popcorn – popped corn kernels with different flavors (high competition)

Smart Pop Popcorn – popped corn kernels with different flavors (high competition)

Twizzlers – a sweet flavored, gummy stick (lower competition)

Sour Patch Kids – sour and sweet gummy candy (high competition)

Planters – Peanuts and other nut types/flavors (moderate to high competition)

Ritz- a dry and sweet baked snack (moderate competition)

Jack Links Jerky – dried cured meat stick (moderate to high competition)

Oreos – small stuffed chocolate and cream cookie (high competition)

            These are indirect competitors because they share the market with Pringles and wrestle for the same demographic of customers, but they do not make the same kind of product as Pringles. Many of these companies sell a different style of snack food, but it is a snack food none-the-less. Pringles could address these by keeping up their holiday promotions and themed flavors, as companies like Oreos and Ritz use the holiday theme in their packaging but not their product flavors. They could also investigate how these indirect competitors save money in their manufacturing or transportation process to learn better ways to manufacture or transport their own products nationally and globally. Pringles can also use the health food trends that are happening in the United States to its advantage and market the product as a healthier alternative to candy or sugary snack foods. Pringles are lower in calories than Oreos, lower in salt than Ritz and Planters, and lower in sugar than Sour Patch Kids. Parents that are buying snacks for their kids would prefer to buy Pringles over an unhealthier snack.

Consumer

Current Consumer Characteristics

Current consumers have a wide array of characteristics when it comes to making buying-decisions, as technology advancements have impacted how consumers can buy products and market changes have impacted buying behaviors. One characteristic of consumers is that they expect to be able to buy a product or service at any time of day because of online and mobile shopping trends (Bolen, 2019). Consumers are also in control of their shopping and buying experience because they are more willing to do research and look for product alternatives to get exactly what they want (Bolen, 2019). Current consumers do expect and appreciate a more personal experience, which could either include human interaction with customer service employees or personalized product recommendations on a company's website (Hausler, 2017).

Consumers are starting to trust word-of-mouth over brand image due to conflicting brand images and their low customer service or product quality rates (Hausler, 2017). Furthermore, consumers are becoming more involved with social media and sharing their experiences online, so businesses need to be aware of their current customer experience and find ways to improve it (Hausler, 2017). Due to fast shipping times and mobile shopping, consumers want products and services as soon as possible and would likely be disappointed by long wait times (Hausler, 2017). With how prevalent social media has become in many consumer’s lives, they are more likely to talk about their experiences online and recommend a brand where they had a positive experience and felt valued as a customer. With regards to Pringle’s, consumers are more likely to discuss limited-edition products online and share their favorite flavors.

Demographics

The current demographics of Pringles are consumers between the ages of 15-19, 24-30 and 50-64 because the snack appeals to younger and older adults who have the extra money to buy the product but don’t want the fat and oil that most snack chips have (“Pringles”, 2019). According to Info Scout, it is mainly African Americans and Caucasian consumers buying the product, while Asian and Hispanic Americans still buy the product but not as often (“Pringles”, 2019). The typical salary of a Pringle consumer varies between under $20,000, between $20,000-$30,000, and $80,000-$100,000 a year (“Pringles”, 2019). This statistic means the career and educational background of consumers varies as well because most university graduates have higher-paying jobs while consumers who are still in high school have lower-paying jobs. The buying habits of Pringles does not seem to greatly differ between consumers who have a college degree and consumers who did not go to college, as most consumers want a healthier or newer snack options instead of the same regular chip snacks (“Pringles”, 2019). A majority of consumers do have children, so that will contribute to the variation of consumer ages and salaries since many of them may be buying the snack for their young children (“Pringles”, 2019). There is also very little difference between the Pringle buying habits of males and females, as either parent is likely to buy the product for their child and young adults tend to buy similar snack items regardless of gender (“Pringles”, 2019). 

Psychographics

The psychographics of Pringle’s consumers varies the same way the demographics do, as values and buying habits vary based on age and gender. Consumers tend to prefer variety over price or quantity, as they like being able to buy one of a hundred different flavors of chips instead of only one of a few flavors (Meredith, 2019). Consumers find fulfillment in family, as consumers often have children and are two-income households (Meredith, 2019). Pringle’s consumers are loyal and will typically buy from the same brands or routinely buy the same product (Meredith, 2019). They buy Pringles as a part of weekly grocery shopping and during special occasions when limited-edition flavors are released. Consumers are concerned with health, so they appreciate the lower calories and fats in Pringles (Meredith, 2019). They are also concerned with saving money and keeping on track with a monthly budget, so the reasonable price of the product appeals to many consumers. Furthermore, consumers are also environmentally conscious and prefer buying from brands that have a reduced environmental impact, as Pringles packaging is better for the environment than many plastic bags.

Stakeholders

Pringles is owned by Kellogg's take a lot of corporate responsibility when it comes to engaging with stakeholders. "Across our value chain, we engage with a wide variety of stakeholders to inform our corporate responsibility work and advance our company's commitments" (“Kellogg’s”, 2019). 

Primary Stakeholders:

Employee's

Shareowners

Board of Directors 

Customers

Consumers 

Primary stakeholders have a direct impact on the company just as the company has a direct impact on them. If the company loses sales, then Kellogg's and its employees would be directly affected. The Board of directors is the most common form of stakeholders, as they make decisions and monitor the business to ensure the company is making a profit and performing in the best interest of other stakeholders. Kellogg's does an excellent job of engaging with their stakeholders, and they do it in a variety of different ways. Employees are important stakeholders because it allows Kellogg's to collect data from employee satisfaction surveys, education programs, volunteer experiences, and company meetings. These shareowners perform conference calls, regular financial reports, individual meetings, and investor relations website. Customers can take surveys, attend regular meetings, and be a part of partnership programs. Kellogg's provides great resources to show investors why they should invest, and how their actions play a vital role in business decisions. 

Secondary Stakeholders:

Government Leaders

Local Communities 

NGOs

Secondary stakeholders do not have a direct impact on the company; however, the company can impact them. For instance, Pringles factories create jobs that improve local communities and boost local markets. Kellogg understands that secondary stakeholders are important to their company although they don't have a direct relationship with the company. Kellogg's focuses on government leaders, local communities and NGOs. Government leaders are engaged with by offering them plant tours, conference attendances, and regular meetings through emails. Kellogg's also engages with its local community by sponsoring local events, disaster relief efforts, and partnering in community programs. Kellogg's promises to all primary and secondary stakeholders that they are out to make this world a better place by feeding people in need. 

Target Market

Proposed Primary Target Market

The primary target market of Pringles is both males and females below the age of 20, but older than 10. They do not generally have an income, and if they do it's quite low and their general occupation is being a student. The reason this is the main target market is that parents are much more willing to buy what their kids like, giving the children the purchasing power over them and stackable chips such as Pringles are neat and fit nicely in packed lunches or even lunches sold as schools. If kids are interested in a product, they will remind their parents of the product until they purchase it generally. Pringles as a product is not so overly expensive that parents give normal fiscal barriers to purchase for their children and chips are something parents can enjoy as well. There are over 22 million teenagers in the United States between the age of 15-19 years old and is considered an untapped market that, which we can take advantage of to better sell our product ("US Census Bureau"). Teens are more susceptible to brand loyalty when they believe that a company is marketing solely to them.

Proposed Secondary Target Market

The secondary market for Pringles is the parents of these said children or midrange aged adults in general. In the primary market we target both female and male teens alike, however, we will not market specifically away from gender, the focus will be on males age 25-35, as women, especially mothers, tend to be more health-conscious of what their children are eating. Whereas men and both teenage boys are girls are less health-conscious of their diet and what they are eating. This group will likely be far larger earners financially than teenagers, but also do not want to grossly overspend on groceries, especially snacks like Pringles. Keeping the product affordable, which is believe it currently is and marketing secondarily towards fathers and young men should result in a winning formula in the secondary target market.

. Research Development

Market Research Objectives

The objectives of our market research for this section is to analyze what effective ways we can introduce a holiday theme for our brand and what affect it will have on our customers while exploring if this opens new avenues for our business moving forward when promoting holiday themes along with our brand. We will also study how this will affect and change perceptions of our brand both in the market and from outsiders using analytic tools to determine whether or not to proceed forward (“Defining market research goals”, 2019). This will be done via observations of our target market through demographics, geographics, and psychographics.

Market Observations

Market observations are used to give us intel on how consumers act inside of a market when presented with things under natural conditions. You must consider and consult with marketing professionals to learn and understand how presenting information to the public will cause them to react or respond as the consequences of a bad marketing campaign can be dire. There any many ways to get this information, the first and most obvious is either survey-based, or interview-based finding out how customers you believe are in your niche or demographic will react to your plans. Others include online observations such as online comments on boards and social media and indirect observations such as studying data optioned elsewhere which you viewed but did not gather yourself.

We found that the global snack food market will grow by almost 5 and a half percent by 2024 (“SNACK FOOD MARKET”, 2019). The fastest-growing marketing being the Asia Pacific market and the largest market to hit being the European market (“SNACK FOOD MARKET”, 2019). The market itself is beginning to cement itself with ready to eat foods straight from the store as higher disposable incomes and less time at home to prepare meals becoming a norm requiring people to buy more snack foods and ready to go foods, such as Pringles, to include in their work lunches and other sorts of meals to supplement cooking something there (“SNACK FOOD MARKET”, 2019). This trend is likely to continue to grow in the coming years giving us even more opportunity to show growing markets such as the Asia Pacific one that we understand them and their market by releasing themed packaging detailing their region's cultural themes (“SNACK FOOD MARKET”, 2019). This can also be said for the European market as there are a vast number of languages to market to and having catchy phrases in that local language on packaging can be beneficial as well (“SNACK FOOD MARKET”, 2019). We find ourselves in the market segment of chip/salted snacks. This specific portion of the market is an area where many overseas markets do not snack on the same types of foods that we do, so allowing ourselves an opportunity to enter the market find what their customers are looking for in an American based chip product can also be side observations we do during this research (“SNACK FOOD MARKET”, 2019).

Online Survey Analysis

Using a medium such as twitter, Pringles could put out a survey. The survey format on twitter allows for 4 responses to be pre-determined. Recently, Pringles posed a few questions on twitter concerning what the users’ favorite flavor is and if they’d like to see it paired along with our next holiday packaging that was made from artists in local communities (“Pringles Twitter”, 2019). Twitter's survey algorithm allows for 4 options to be chosen from, Pringles used these options: Original, BBQ, Sour Cream and Onion, and Cheddar Cheese (“Pringles Twitter”, 2019).

Based on the responses received from their poll Pringles would likely choose the holiday packaging that would go with the winning flavor, it gives consumers the chance to feel involved in the corporate decision-making process at Pringles while using their most popular flavors they ensure the message will get out there that they’re using holiday packaging while promoting homegrown artists. By using their most popular flavors, they can assume that many will see their holiday packaging and then study that data after the fact to see if it had any effect on sales. The poll came out to be in favor of BBQ chips the numbers were: Original 29%, BBQ 33%, Sour Cream 24%, and Cheddar 14% (“Pringles Twitter”, 2019).

Precedent/Preceding Studies

Marketing Communications Strategies

Pringles has done an excellent job of interacting with its customers and proving to be successful with their marketing efforts. "At the beginning of the year, Pringles launched its #YouDontJustEatEm campaign. They started this campaign to engage and interact with their fans on social media, namely on Facebook, Instagram and Twitter" (Vijaykar, 2014). Pringles reached out to their buyers and asked them to post different kinds of pictures, videos, and tweets with the hashtag. This allowed Pringles to show how creative they can be, and how well they can engage with customer reactions. "Pringles has always focused on extensive advertising and marketing. The product packaging has been done based on the flavor of the chips which appeals to the consumers" (“Pringles Marketing Mix”, 2019). Pringles has had successful promotions by creating TV advertisements, outdoor advertisements, magazine ads, and celebrity endorsements. You will notice that Pringles have popular commercials throughout the Super Bowl, which is a popular sporting event that happens in the beginning of the year on Sunday. The product has been known to offer great coupons, price reductions, and special samples. Pringles also focuses on giving back to the community as they will sponsor many different charity events. These are effective tools in order for Pringles to put their products in front of their consumers. Today Pringle's marketing efforts have allowed them to offer consumers 29 different flavors that come in different snack sizes.  Pringles are disbursed worldwide allowing all potato chip lovers to enjoy their product.

Online Survey Analysis

Recently, Pringles has posted several short surveys on Twitter that ask consumers questions about their preferences and buying habits. Some questions include how often do you buy Pringles, what is your favorite flavor, do you like the holiday-themed packaging, do you prefer our packaging over plastic bags, how important is charity and giving back to your community, and whether consumers prefer short marketing campaigns or more involved marketing campaigns (“Pringles Twitter”, 2019). After reading through the surveys and polls it seems that consumers buy Pringles at least twice a week on average during grocery shopping, prefer BBQ or Cheddar Sour cream chips, enjoy the holiday-themed packaging and will buy the product more often during the holidays, they like the current cardboard packaging, think charity is very important, and prefer more involved marketing campaigns (“Pringles Twitter”, 2019). These results show that a long-term marketing campaign that involves charity or the holiday season will do well in the market. Furthermore, it seems that many consumers have simple taste preferences, so possibly combining a smoky BBQ with a cheddar Pringles chip may be something consumers will want. Product packaging also seems to be important because many consumers are becoming more environmentally conscious and would prefer Pringles biodegradable cardboard packaging to plastic bags that competitors use. Based on these results, we will create a month-long advertisement campaign that involves the Halloween season and a charity drive to help people in need during the winter season. The advertisements will get consumers involved in the business and appeal to consumers who want to give back to their community but don’t know how to.

Marketing Programs & Marketing Strategies

Advertising

The advertising plans and strategies for BBQ Pringles are rather simple, as we plan to use social media and online websites to promote the product and gain consumer attention. Utilizing Halloween as our focus of the advertisements, we will create 5 murder mystery advertisements that will be posted at different times of the month and lead to a discount or free product. This will inspire consumers to visit the company website, watch the advertisements, and follow along with our advertising campaign. The first ad will be a picture advertising on Twitter, letting consumers know about the mystery and chance of a prize for several people who solve the puzzle fastest. The second will be a short video advertisement on Instagram that details the characters of the murder mystery and how people can guess answers or solve the puzzle. The third ad will be a picture advertisement on Facebook, Twitter, Instagram, and the company website that shows the murder and the locations of each character in the game. The fourth and fifth advertisements will be short videos on Facebook, Twitter, Instagram, and the company website that shows clues, character movements, and the relationships between each character. Though, each advertising prior to the fourth and fifth ads also have small clues that consumers will have to search for. A murder mystery advertising campaign would help to increase product awareness, improve sales of the product during Halloween, and boost customer perception of the product and the company. This advertising plan would cost nearly $40,000-$60,000, as we would only have to pay for a graphic designer to create the advertisements and pay for someone to post them and respond to comments.

Sales Promotion: Consumer & Trade

After the murder mystery has been solved, BBQ Pringles will go on sale for a few days before Halloween at 25% off to appeal to consumers who want to save money just before they have to buy candy or costumes. Furthermore, coupons will be sent out to consumers in an email and in the mail to entice consumers to buy BBQ Pringles the next time they go grocery shopping. The sale will appeal to consumers who want to save money and want to buy their kid a healthier snack for Halloween. Furthermore, the sale will increase consumer involvement with the murder mystery event and charity drive. The coupons will also appeal to consumers who want to save money and get a deal on buying more than one can of BBQ Pringles.

The budget for merchandising and product displays in stores will increase, so the product will get sold faster and make room for the holiday-themed products. Furthermore, the contest to solve the murder mystery is a trade promotion because it focuses on moving products and mainly provides a benefit to the consumer who will save money on the products they buy. Increasing the budget for merchandising in stores will benefit the company by making more room for newer products and getting the product front and center in the consumer's face. The contest encompasses many aspects of trade promotion and a consumer promotion, as it benefits the company by getting the product name in the consumer space and giving consumers a discount on a product so they can save money.

Public Relations

During the Halloween season, Pringles would donate 30% of BBQ Pringles sales to homeless shelters in local store areas and to schools for children in need, so homeless people would have a warm place to sleep during the winter and children would have warm jackets, food, and school supplies. This would improve the public relations with the company, as customers would be donating to a charity and helping out people in need by buying the product. Consumers would think positively of the business and the product because we are giving back to our community and helping people who need it. Another way we will be utilizing public relations strategies is through online comments on social media platforms and building relationships with consumers. Selling the product and answering questions about the murder mystery event going on in October would also improve the relationship consumers have with the business, as they would be able to directly interact with the business. Consumers would see the business as responsible, generous, and customer-oriented when they buy a product to help donate to charity and see the company's responses to questions or comments online.

Personal Selling

Personal selling strategies will include using customer service representatives to promote product sales, the donation event, and the murder mystery event. When a customer has to use a helpline to discuss a problem or make a complaint, the representative will resolve the issue and use retention techniques to turn the customers experiences into a positive one. After the customer is happy their problem was resolved, the representative will discuss product sales, the donation event, and the murder mystery event. This will be a short conversation, as consumers do not like to be on the phone for a long length of time or feeling pressured into buying something they may not want. So, we will advise the customer service representatives to give a short presentation of the events and explain the benefits of joining in on the fun. Consumers will not feel pressured and will be more likely to donate or look for product sales in the future to save money. If the customer is not happy with how the customer service representative handled the promotion, then they can fill out the customer service survey to rate their experience and explain any issues. The survey will be emailed to customers after their phone call or chat-box conversation with a representative and will be used to make changes to the sales pitch and customer service policies.

Direct Marketing

Direct to consumer marketing strategies will include sending promotional emails to consumers explaining the October and charity donation events. This will directly market to consumers and ensure as many people as possible are aware of the events happening in October. The emails will have coupons for small discounts on the product and updates about how the donation event is going. Receiving coupons and updates about events means consumers would be more likely to go out and buy the product to donate to charity and use the coupons later on to save money. We will also use physical mail to directly market to consumers within a small radius of stores that carry BBQ Pringles, meaning mail will be sent to consumers who live between 15-20 miles from a grocery or retail store. This will directly market to consumers and ensure as many people as possible are aware of the events happening in October. The mail will only be sent once, so we can let consumers know about product sales, the donation event, and the murder mystery event that will all happen in October without overwhelming them with promotional materials. The cost of our direct marketing plan would be nearly $5,000-$10,000 to create the emails and letters then send them to the specified areas.

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