crayola new business pitch

Wednesday, 21 August, 13

Diana . Carolyn . Maury


INDUSTRY REVIEW


REVENUECRAYOLA IS PRIVATELY OWNED WITH

$50-$80MIN SALES IN CANADA (2012)

Revenue Market Size Market Share Brand Share

SOURCE: INDUSTRY CANADA- CANADIAN COMPANY CAPABILITIES


THE WRITING INSTRUMENTS MARKET IS

$237MIN CANADA (2012)

MARKET SIZE


SOURCE: PASSPORT - WRITING INSTRUMENTS IN CANADA, EUROMONITOR INTERNATIONAL


MARKET SHAREIN WRITING INDUSTRY 15%

4%9%

11%

26%

36%

Newell RubbermaidBICCrayolaStaplesPentelOthers

1.COLOURING2.MARKERS3.PENCILS4.PENS5.WRITING ACCESSORIES6.WRITING INSTRUMENTS




27%9%

9%

11%

18%

26%

BICSharpieCrayolaPapermateStaplesOthers

BRAND SHARECRAYOLA OWNS THECOLOURING SEGMENT WITH

70%MARKET SHARE IN CANADA (2012)




INDUSTRY TRENDS

INDIRECT EFFECTS OF

TECHNOLOGY

CAUTIOUS CANADIAN

CONSUMERS

WRITING INSTRUMENT MARKET REACHED

MATURITY

1% GROWTH ($10M IN 5Y)


ARTISTIC

FUNCTIONAL

ADULTSCHILDREN

Success in this mature market is achieved by attaching additional value to the physical product


Sharpie Roseart Prismacolor

Competes on PriceCompetes on Quality

$10M$56M $6MCompetes on Quality


BRAND COMMUNICATIONS


1960’s -70’s 1980’s 1990’s 2000’s

“CRAYOLA CRAYONS, THEY WORK ON BRAINS NOT BATTERIES”

“CRAYOLA DRAWS YOU CLOSER”

“YOU DON’T JUST DRAW WITH THEM, YOU ROCK AND ROLL WITH THEM”

“THERE’S ONLY ONE CHILDHOOD AND ONLY ONE CRAYOLA ”


TODAY“CRAYOLA BELIEVES THAT WHAT IF IS THE GREATEST QUESTION IN THE WORLD”


CRAYOLA

Helping parents and educators raise creative...children who will grow to be inspired, original adults.

POSITIONING PERSONALITYCreative, Inspirational, Original and Trusting


WHY DDB?

CREATIVITYWednesday, 21 August, 13

BUSINESS PROBLEM


BUSINESS PROBLEM

THE BREAK-DOWN

SOURCES:*IBIS WORLDWIDE, 2012**STATISTICS CANADA, 2013

PROJECTED GLOBAL REVENUES FOR THE NEXT 5 YEARS*

MATURITY TECHNOLOGY RECESSION K-12


BUSINESS PROBLEM

LIFE SPAN

AWA

REN

ESS

CONSUMPTION

PURCHASE


BUSINESS PROBLEM

LIFE SPAN

AWA

REN

ESS

INCREASE CONSUMPTIONCONSUMPTION


BUSINESS PROBLEM

LIFE SPAN

AWA

REN

ESS

BONUS: GREATER TOP-OF-MIND AWARENESS THROUGHOUT LIFE

--> LOWER ACQUISITION COSTS


DDB’S CHALLENGE


HOW?BY BUILDING BRAND RELEVANCEWITH TEENS AND YOUNG ADULTSWITHOUT ALIENATING THE CURRENT TARGET (MOMS, EDUCATORS, KIDS)

SALES OF CRAYOLA PRODUCTS BYINCREASING THE LTV OF CRAYOLA CONSUMERS.


INSIGHTS


CURRENT ATTITUDES

ASSOCIATIONS TESTS

88 RESPONDENTS504 ASSOCIATIONS

CrayonsColours

Childhood/NostalgiaKids/Children

MarkersFun/Play

Art/Arts & CraftsColouring/Colouring Books

Grade School/PreSchool/KindergartenDraw/Drawing/DrawingsCreativity and Freedom

WaxPencil Crayons

RainbowsRestaurants

PaintPaper

Bright/VibrancePictures

The Crayon BoxCrayola DIY

Peeling WrapperCrayons up nose

School supplies/Back to SchoolFamily/Bonding Time

VarietySmell of Crayons

Children ArtToys

DistributionCracking/Breaking in Half

Eating CrayonsConstruction Paper

ScissorsDrawing on walls

ChalkCamp

Write/Writing MaterialPencils

The logoOil

Other

0 15 30 45 60SOURCE: PRIMARY RESEARCH 88 RESPONDENTS


LACK OF AWARENESS FOROTHER PRODUCTS

#1: “NO USE”

BARRIERS TO BRAND RELEVANCE

OtherPencils

ChalkScissorsConstruction Paper

PaperPaint

Pencil Crayons

Markers

Crayons

SOURCE: PRIMARY RESEARCH 88 RESPONDENTS AGES 18-24, 2013


Drawing on wallsEating Crayons

ToysChildren Art

School supplies/Back to School

Crayons up nose

Rainbows

Grade SchoolColouring

Kids/Children

Childhood/Nostalgia

Crayons

BARRIERS TO BRAND RELEVANCE

IT’S ALL IN THE PAST

#2: “FOR KIDS”



WHY DID YOU STOP USING CRAYONS?

2%3%3%3%4%

10%

12%

13% 17%

34%

88 RESPONDENTS107 REASONS

Moved on to markers/pencil crayons/otherOther priorities/interestsLack precisionSchool no longer required themGrew out of itmessyBad at drawingnot given them anymore at restaurants/planesnot coolno need

MORE COMPETITORS IN THIS SPACE



STRATEGY


OUR STRATEGIC SOLUTION

THE FRAME OF REFERENCEEDUCATE & OFFER NEW USAGE OCCASIONS TO MAKE CRAYOLA PRODUCTS RELEVANT TO AN OLDER DEMOGRAPHIC


ASSOCIATIONS TO LEVERAGE


Variety

Crayola DIY

Creativity & Freedom

Arts & CraftsFun/Play

Childhood/Nostalgia“CREATIVITY & FREEDOM”


CRAYOLA’S INNATE QUALITIESFLIPPING “NO” INTO “YES”

WASHABLE

AFFORDABLELUXURY

CONSISTENT QUALITY

EASILY ACCESSIBLE

LACK

PRECISION

MESSY NOT

PROFESSIONAL

FOR KIDS

FUNCTIONAL EMOTIONAL INNATE QUALITIES


IT’S OKAY TO MAKEMISTKES.CRAYOLA IS ALL ABOUTHAVING FUNAND UNLEASHING YOUR CREATIVITY.


OPPORTUNITY TO CURATE & AMPLIFY CONVERSATIONS FROM THE LONG-TAIL

ENTERTAINING

BEAUTIFUL USEFULPROFESSIONAL USES

NOSTALGIA + POP CULTURE

ACTIONABLE

SOURCES: HEY WHIPPLE, SQUEEZE THIS, 2013


OUR TARGET LOVES “FIRST”-NESS*

MILLENNIALS/GEN-C (15-35)**

30% OF CANADIAN POPULATION***NOSTALGIC, CREATIVE,

47% WANT BRANDS TO PROVIDE INSPIRATION FOR THINGS TO DO, MAKE, OR BUY.*

PARENTS OF THE FUTURESOURCES: TRENDWATCHING.COM**, STATISTICS CANADA 2013***, BAZAARVOICE.COM 2013*


0

15

30

45

60

30

54

39

46

32

CREATIVE VS. ARTISTIC

STRONGLY DISAGREE STRONGLY AGREE

0

15

30

45

60

16

23

35

15

2321

3




TACTICS + DDB FIT


#1. MICROSITEONLINE BRAND COMMUNITY

EDUCATE TO ENTERTAIN & TO DISPLAY MORE USAGE OCCASIONS

DRIVE SALES THROUGH BRAND ENGAGEMENT


#2. SOCIAL MEDIA CAMPAIGN

YOUTUBE BANNER TAKEOVERS

#TBT#THROWBACKTHURSDAY

BUZZFEED REWIND

63M mentions (2013)


#3. EVENT SPONSORSHIPFUN

GET MESSY

COLOURS

AGE APPROPRIATE


PHASE 1 PHASE 2

INTO THE FUTURE

MILLENNIALS/GEN-C

CRAYONS

FUEL CURRENT TARGET

BIGGER EXECUTIONS

ALL CRAYOLA PRODUCTS


THANK YOU


APPENDIX

DUAL TARGETED PRODUCTS DIY CRAFTS

CREATIVE + DIY VS ARTISTIC

CB ANALYSIS

DDB FIT

TESTED EFFECTIVENESS

WHY GEN C

MEET NAHHEEM


CRAYOLA DIY


WHY DOES THIS MATTER?

REACTIVE RESPONSE PROACTIVE RESPONSE

1.TECHNOLOGY*2.STATIONARY INDUSTRY*3.BIRTH RATE**4.RECESSION

INCREASE SALES BY BROADENING TARGET

(+ LOWER FUTURE ACQUISITION COSTS)

SOURCES:*IBIS WORLDWIDE, 2012**STATISTICS CANADA, 2013

PROJECTED GLOBAL REVENUES NEXT 5 YEARS*


0

15

30

45

60

18

3230

10

35

2

30

54

39

46

32

CREATIVE + DIY CRAFTS VS. ARTISTIC


0

15

30

45

60

16

23

35

15

2321

3


SOURCE: PRIMARY RESEARCH DIY 100 RESPONDENTS AGES 18-24, 2013


FINANCIAL FEASIBILITY: C/B ANALYSISCOST MIN MAX

MICROSITE $100,000 $150,000

BANNER TAKEOVER AND YOUTUBE

$80,000 $100,000

DIRECT MAIL PIECE AND 20 BLOGGERS FOR 3-4 WEEKS

$70,000 $100,000

COLOUR RUN SPONSORSHIP $10,000 $25,000

TOTAL $260,000 $375,000

MARKET SIZE ESTIMATE

TOTAL CANADIANS 34,480,000

CANADIAN INTERNET USERS (83%)* 28,618,400

MILLENNIAL INTERNET USERS IN CANADA (41% OF TOTAL)**

11,733,544

DIY-LOVING MILLENNIALS IN CANADA*** 9,386,835

TOTAL 9,386,835

SOURCE: *WORLD BANK, 2011, **EMARKETER 2010, ***PRIMARY RESEARCH


FINANCIAL FEASIBILITY: C/B ANALYSIS

SITUATION DIY-LOVING MILLENNIALS IN CANADA

REGULAR SM USERS

% REACH MAKES PURCHASE ONLINE/IN-STORE

PURCHASE VALUE BENEFIT

OPTIMISTIC 9,386,835 70% 20% 30% $20 $7,884,941.4

BASE 9,386,835 70% 10% 30% $20 $3,942,470.7

CONSERVATIVE 9,386,835 70% 5% 30% $20 $1,971,235.35

OPTIMISTIC 9,386,835 70% 20% 30% $10 $3,942,470.7

BASE 9,386,835 70% 10% 30% $10 $1,971,235.35

CONSERVATIVE 9,386,835 70% 5% 30% $10 $985,617.68

OPTIMISTIC 9,386,835 70% 20% 30% $5 $1,971,235.35

BASE 9,386,835 70% 10% 30% $5 $985,617.68

CONSERVATIVE 9,386,835 70% 5% 30% $5 $492,808.84

$260,000 - $375,000

SOURCES:*VISION CRITICAL, 2013, AVERAGE OF 3 SOCIAL NETWORKING SITES


TESTED EFFECTIVENESS OF IDEA

0

8

15

23

30

-5-4-3-2-10 1 2 3 4 5

014

13

2026

10

1000 0

8

15

23

30

1 2 3 4 5

711

1924

14

6

0

10

3029

51%



BRANDS PROMOTING DIVERSE USAGE OCCASIONS TO ATTRACT NEW TARGET


WHY DDB CANADA

“MICHAELS HAS INVESTED $20M IN QUEBEC STORES...THE QUEBEC PUBLIC IS A VERY CREATIVE CUSTOMER IN CRAFTS” (NEWS 1130)

PUSHING FOR GLOBAL EXPANSION.2013 NEW USA WEBSITE, 2014 ROLL OUT CANADA & MEXICO

SOURCES: WORLD BANK, 2013


WHY MILLENNIALS/GEN-C

82% OF CANADIAN TEENS AND YOUNG ADULTS INTERNET USERS ARE WILLING TO SHARE THEIR BRAND PREFERENCE ONLINE*

41% OF CANADIAN TEENS AND YOUNG ADULTS WRITE ONLINE POSITIVE REVIEWS** 91% OF PEOPLE HAVE GONE INTO A STORE BECAUSE OF AN ONLINE EXPERIENCE. (SOURCE: MARKETING LAND)***

SOURCES: *EDELMAN, "THE 8095 EXCHANGE: MILLENNIALS, THEIR ACTIONS SURROUNDING BRANDS, AND THE DYNAMICS OF REVERBERATION" CONDUCTED BY STRATEGYONE, OCT 14, 2010**EMARKETER**MARKETINGLAND, 2012


http://marketingland.com/survey-91-percent-have-gone-into-stores-because-of-online-promotion-28796

http://marketingland.com/survey-91-percent-have-gone-into-stores-because-of-online-promotion-28796

MEET NAHEEM


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