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Case Study – Bumble Bee Tuna!
Agenda
• Background
• The Situation – Circa 1993
• The Value Drivers
• The Plan of Action
• The Results – Circa 1998
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Background!
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Some Brands!
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The Tuna Wars of the 1990s!
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The Situation – Circa 1993!
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Time Machine – 1993!
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Segmentation – Key Target Segments!
• Women 18-49 years old
• Healthy eaters
• Children 10-17 years old
• Tuna preferences vary by region o Bumble Bee in New York City, Boston, Philadelphia, Miami o Chicken of the Sea in Minnesota, Wisconsin, Kansas, Okla. o StarKist in Midwest, Mid-Atlantic, South, California
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Marketing Research and Analysis!
• Tuna consumption decline coming from heavy users o i.e., frequency of usage declining
• Only StarKist commanding any price premium o And only then in certain markets
• Bumble Bee key factors o Gross margin and profit driven by Whitemeat (63%) and
convenience items (76%) o While #3 market share in Total Tuna, Bumble Bee had the #1
market share in Whitemeat Tuna o Bumble Bee recent winner of product quality test based on
product quality improvements; • Until then, no statistically significant difference found between
the Big 3 tuna brands
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Positioning – Crucial Words in Tuna!
• “Taste” o Issues: All tuna brands emphasizing the same attribute:
• “Sorry Charlie...only good-tasting tuna gets to be StarKist” • “Yum-Yum Bumble Bee, Bumble Bee tuna...” • “What’s the best tuna, Chicken of the Sea”
• “Convenient” o Issues: Tuna losing ground on this attribute due to:
• The increasing number of women in the workforce • Reduction in leisure time across key target segments
• “Healthy” o Issues: Tuna losing ground on this attribute due to:
• Concerns with tuna tuna served with mayonnaise, mercury in tuna
• “Fun” o Issues: Drop in in tuna consumption among children
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Perceptions!
• Tuna category turning into a commodity o Less than 20% believe that “1 brand is best”
• Overall tuna brand awareness low and declining o No brand with Awareness above 50%
• Bumble Bee brand awareness in last place o (70%) lower than Chicken of the Sea o (75%) lower than StarKist
• Bumble Bee brand image (favorability) in last place o (40%) lower than Chicken of the Sea o (50%) lower than StarKist
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The Value Drivers!
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Value Drivers!
0123456789
Importance
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Value Drivers – With Brand Overlay!
0123456789
Importance
Bumble Bee
StarKist
Chicken of the Sea
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Value Drivers – Desired Movements!
0123456789
Importance
Bumble Bee
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The Plan of Action!
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The Overall Goal – Reposition Bumble Bee!
o Reposition as “Premium” – Create & Own a New Word o America’s Favorite Albacore!
• Marketing’s Law of Leadership (#1) and Law of Category (#2)*
o “Albacore” vs. “Whitemeat” • “Albacore” sounds more sophisticated and prestigious than “Whitemeat”
o New Packaging • More fun, active, modern, sophisticated
*The 22 Immutable Laws of Marketing, Ries and Trout
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The 4 P’s – Product Goal!
• Product – Become leader in convenience and health
o New Product: Ready-To-Eat Tuna Salad lunch kit o New Product: Diet Low Salt tuna o Focus on more convenient sizes (single-serve, family)
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The 4 P’s – Place (Distribution) Goal!
• Place – Increase distribution of high-margin products
o Gain distribution of new products o Increase distribution of convenience sizes across the U.S. o Broaden distribution outside of the U.S.
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The 4 P’s – Promotion Goal!
• Promotion – Appeal to children with targeted marketing
o Co-promotion with Warner Bros.’ Free Willy movie release o Sponsor of the Scripps-Howard’s National Spelling Bee o Created fun and interactive “world-wide” website...in 1996!
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The Results – Circa 1998!
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Advertising Awareness – Aided and Unaided!
0%
10%
20%
30%
40%
50%
60%
70%
1983 1988 1993 1998
Bumble Bee
StarKist
Chicken of the Sea
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Favorability Ratings – Top 3-Box Rating!
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
1983 1988 1993 1998
Bumble Bee
StarKist
Chicken of the Sea
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Tuna Consumption – Among Children!
0%
5%
10%
15%
20%
25%
30%
35%
40%
1983 1988 1993 1998
Tuna Consumption Among 10-17 Years Old
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Frequency of Tuna Use – As a Percent!
0
5
10
15
20
25
30
35
40
45
50
1991 1992 1993 1998
Once a Week +
Once Every 2-3 Wks
Once a Month
Less Than Once a Month
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Reduced Dependence on Few Markets!
0%
10%
20%
30%
40%
50%
60%
70%
80%
1988 1993 1998
Market Share -- Top 10 Markets
Market Share -- All Other Markets
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Highest Ever Market Share – Whitemeat!
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
1983 1988 1993 1998
Bumble Bee Whitemeat Market Share
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0%
5%
10%
15%
20%
25%
30%
1983 1988 1993 1998
Bumble Bee Convenience Items Market Share
Highest Ever Market Share – Convenience Items!
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Highest Ever Profit – Total Tuna!
$0
$10
$20
$30
$40
$50
$60
1983 1988 1993 1998
Bumble Bee Total Gross Margin (in M)
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Next Up...The Cable Wars!
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Next Up...UM Overview and Work-In-Progress!