The Idea ShackKIAH

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TEAM MEMBERS

Sonja Bell Texas State Amy Brauckman Sam HoustonMichelle Castillo Texas A&MMichael Cousins TexasShawn Crumbly Sam HoustonKirbi Gayle Texas A&MMelissa Jarrett Texas A&MHeather Mella Sam HoustonSteffin Schoeppel Oklahoma StateSunday Trevino Texas A&M - KingsvilleKaty Winans LamarBen Wirtz Texas State

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TABLE OF CONTENTS

Executive SummarySituation Analysis

Marketing ObjectivesCreative

Budget/Media PlanEvaluation

Conclustion

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EXECUTIVE SUMMARY

To begin, we analyzed the situation of Fiesta’s current positioning. Through the competitor analysis, it was found that there is an available niche of customer experience in the market. After conducting the SWOT analysis we were able to de!ne the areas that needed the most help in targeting the market Fiesta wants to reach. The communication objective discussed an integrated marketing improves perceived brand position by creating new faces in the door, increase sales, and a different mix of product movement with a $4 million budget over one year. The marketing objective for Fiesta is suggested to capture the “Fiesta” factor of the company with the “Come see why we are celebrating” umbrella theme.The creative theme captures the English meaning of “Fiesta”, which is “party”, and used a variety of mediums to effectively market with the restrictive budget of $4 million dollars. Finally, the evaluation was created to describe what Fiesta can improve on and suggestions that could improve sales, traf!c, and a variety of demographics.

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SITUATION ANALYSIS

Challenge

Fiesta’s percieved brand position is they are only for the Mexicans and all our food comes from Mexico. The challenge is to convenience folks that we are a good food shopping choice. How can we present outselves as a store of their choice. We have changing neighborhoods and we need to change as well. Some areas we have and some we are in transition. How do we connect the pieces?

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SITUATION ANALYSISClient History

Since 1972, Fiesta Mart has succeeded in providing their customers with grocery goods and culturally distinct products. Fiesta caters mostly to the Hispanic culture of Texas but also provides merchandise for a multi-cultural clientele. Fiesta Mart stores are located in over 50 different neighborhoods in and around the major cities of Texas and offer its customers a unique shopping experience with independent vendors that sell a variety of goods in an open-market. Selling more than high quality meat, groceries, fresh produce & seafood departments, Fiesta offers a world-class delicatessen, beer & !ne wines and a variety of international and specialty foods and products. Fiesta takes pride by offering a variety of goods and services in a traditional buying atmosphere.

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Competitive Analysis

Fiesta Mart’s chief competitors include H.E. Butt Grocery Company, Randall’s Food Markets, Wal-Mart Stores Inc., The Kroger Co., and the Target Corporation. These grocery stores all fall under a family oriented value structure and carry a variety of fresh produce, dry goods, pharmacies, clothing, and household items. To the perception of the consumer, these retailers are blurred together due to the dif!cult objective these companies face trying to differentiate in the grocery store market due to similar products and prices. Analyzing Fiesta Mart’s competitors will enable the company to locate the unmet need in the market and !nd a successful niche in the grocery store market.

SITUATION ANALYSIS

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SITUATION ANALYSISCompetitor Summary

H-E-B: Founded in 1905, H-E-B is located in the southern part of Texas, Louisiana, and northern Mexico. There are approximately 310 stores, each serving upscale organic products and !ne foods. Mission Statement: H-E-B Partners stand together to build the greatest retailing company and each and every person counts. We promise great people, the best service, freshest produce, low prices, good value, a shopping experience that meet needs, and great products for today and tomorrow.

Randall’s:Founded in 1906, Randall’s originated in Houston, Texas. Currently, Randall’s expanded their locations throughout Texas, mainly in Houston, Austin, and Dallas/Fort Worth. Randall’s has 127 stores mainly located in wealthier neighborhoods to cater to more af"uent customers. Mission Statement: We are committed to giving back to the community, workplace diversity, and becoming an environmentally friendly company.

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Competitor Summary

Wal-Mart:Founded in 1962, Wal-mart is the #1 discount retailer as well as the #1 largest public corporation according to Fortune 500 in 2008. Wal-mart is the only competitor operating internationally with 8,159 stores. Wal-mart is located in North America, South America, Europe, and Asia. Some of Wal-mart’s direct competitors are Kmart, Target, and Costco. Mission Statement: Sam Walton envisioned selling a variety of general merchandise at “always low prices”. He wanted to save people money to help them live better.

SITUATION ANALYSIS

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Competitor Summary

Kroger:Founded in 1883, Kroger is the largest grocery store chain in the U.S. with 2,470 stores throughout the U.S. Kroger has several store formats including grocery stores and multi-department stores, convenience stores and mall jewelry stores. They operate under nearly two dozen banners throughout the U.S.Mission Statement: To be a leader in the distribution and merchandise of food, pharmacy, health, personal care items, seasonal merchandise, and related products and services. We want to build strong local ties and brand loyalty with customers.

SITUATION ANALYSIS

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Competitor Summary

Super Target:Founded in 1902 as the Dayton Dry Goods Company, Target created their Super Target line in 1995. Target is the #2 discount chain behind Wal-Mart. Target’s target market includes younger, educated, af"uent shoppers. Target carries upscale, fashion forward merchandise at low cost.Mission Statement: Make Target the preferred shopping destination for our guests by delivering outstanding value, continuous innovation, and an exceptional guest experience by consistently ful!lling our “Expect More. Pay less.”

SITUATION ANALYSIS

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Market Outlook

SITUATION ANALYSIS

The results of the Competitor Summary have strongly indicated that there is an open niche for a minority-targeted retailer, such as Fiesta Mart, to open up their target market to anyone who consumes food. The Hispanic catering theme of Fiesta’s operations already clearly differentiate them from competitors. In addition to this strong characteristic, if they appeal to more demographics such as Caucasian and African American, they will increase their sales, traf!c, and word of mouth throughout the American culture without having to heavily advertise. Fiesta Mart unfortunately cannot compete with promoting as an established “century old company” like H-E-B, Randall’s, Kroger, and Target. Neither can Fiesta Mart compete with Wal-Mart and Target’s modern distribution operation system and internationally recognized brand. As a result, Fiesta Mart should continue to capitalize on their Hispanic lifestyle by enticing different demographics through the offer of a zestful, cultural experience. Although it is hard to compete with established brands and low prices, Fiesta Mart can effectively offer a customer experience to emphasize and promote value to consumers.

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SITUATION ANALYSIS

Perceptual Map

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SITUATION ANALYSIS

SWOT

Strengths WeaknessesUnique product offering Perception of store

Low Price Lacks ScaleSize of the Hispanic market in Texas Unfavorable Layout

In-store Services Positioning unique products

Opportunities ThreatsUncreached customer segments Rivalry

Appearance and experience of store Competitive pricingIntegrated marketing campaign Misconception of consumer segments

Customer loyalty program

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Strengths

Unique product offering.Fiesta mart provides is a popular ethnic grocery chain catering to numerous cultures with products from all over the world. This creates a unique offering and a competitive advantage over more general retailers. It has a wide assortment and deep variety of products in categories ranging from produce, bakery, meat and seafood. It extends this to selling soft goods and leasing kiosks to outside vendors to bring in further retailing opportunities. This allows Fiesta to cater to various ethnic groups and diverse customer needs.

Low price advantage.A vital factor in grocery store purchasing decisions is product price. Fiesta competes with other main competitors in the area by having a low price advantage. This also attracts the target market. While having low prices it maintains quality goods providing value for customers.

SITUATION ANALYSIS

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Strengths

Size of the Hispanic market in Texas.Hispanics account for a large population in the Unites States with increasing saturation in Texas. Fiesta Mart has a high brand loyalty for these communities therefore growing numbers will continuously bene!t the company. This will help to stabilize sales in the future.

In store services.The store provides a one stop shop by offering not only products but also in store services. These include bill payment, money orders, and cashing checks. This compliments consumer’s busy schedules.

SITUATION ANALYSIS

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Weaknesses

Perception of store.There is negative perception in some segments of consumers due to poor aesthetics, unorganized layout, and lower value goods. This inhibits the company from reaching some consumers and expanding operations.

Lacks scale.Fiesta only operates about sixty locations lacking scale in comparison with its competitors. This makes lowering prices extremely competitive for a small company that does not achieve economies of scale. This concentration also prevents it from capitalizing on opportunity in other states.

SITUATION ANALYSIS

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Weaknesses

Unfavorable layout.The organization of kiosks upon entering the store is uninviting and interrupts the comfortable atmosphere. In some areas of the store are cramped such as front registers. Unstrategic placement of goods makes it dif!cult for customers to conveniently shop. The placement of non food items was intrusive to the overall shopping experience.

Positioning unique products.The company does not take advantage of its unique product offering and positioning this to potential customers. They provide special ethnic or cultural commodities such as a wide selection of imported beer and wine, rare meat selection, and international spices. These are not marketed to the best of the company’s ability.

SITUATION ANALYSIS

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Opportunities

Unreached customer segments.Despite an established target market there are customer segments that are unexplored and have potential for growth. Creating perceived value of the company in these consumers’ minds could be bene!cial. Fiesta must do a better job at communicating to this market by creating a message that will invite all varieties of customers.

Appearance and experience of store.Improving the atmosphere and aesthetics of the store to tailor to customers’ needs would create more favorable perceptions. The store itself is outdated, unorganized, and does not provide an overall experience.

SITUATION ANALYSIS

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Opportunities

Integrated marketing campaign.Fiesta lacks an overall integrated marketing campaign. Taking advantage of today’s technology to distribute advertising messages through a variety of media outlets can help boost sales and awareness. This could also attract new custom-ers and create loyalty for those who are already established shoppers. An inte-grated marketing campaign is vital for any company’s success.

Customer loyalty program.Some form of a customer loyalty program or card is a growing trend among gro-cery retailers. Not only does this provide customers with low price incentives, it also is a great tool for collecting customer information databases. This data can be very useful in analyzing customer segments and purchasing behavior.

SITUATION ANALYSIS

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Threats

Rivalry.One of the industry forces involves a threat of rivalry. With intense competition, it is hard to maintain competitive advantage or differentiate the company without immediate imitators. In the grocery industry there are so many competitors that it will always present a challenge in staying ahead.

Competitive pricing.Because price is one of the driving purchasing decisions for consumers it is an area that is continuously competitive. Major retailers strive to drive prices down in comparison to rivals often creating pressure to lower prices. This is dif!cult for Fiesta due to its small size and distribution.

SITUATION ANALYSIS

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Threats

Misconception by consumer segments.An ongoing threat is that customers will perceive the company negatively decreasing chances that they will shop there. Fiesta is typically viewed as a multi-cultural grocery store only suited for certain ethnicities. However, the company offers many everyday products for a diverse population. If the misconception is not resolved it will be dif!cult for the company to grow.

SITUATION ANALYSIS

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Target Market Analysis

The primary target consists of members of the upper middle class. According to the marketing case, they reside in Katy, Heights, South downtown, Shepherd at 23rd, and Montrose. This group’s average combined income is $55K. For purposes of this campaign, we will refer to them as “young accumulators”.

The secondary target consists of members of the lower middle class. This group’s average combined income is $35K. They reside in parts of Katy, South downtown, and Montrose. For purposes of this campaign, we will refer to them as the “midtown mix”. The “midtown mix” is constantly looking for ways to improve their lower middle class status.

SITUATION ANALYSIS

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MARKETING OBJECTIVE

To develop an integrated marketing campaign that reaches our target market and improves perceived brand position by creativing new faces in the door, increase sales, and a different mix of product movement with a $4 million budget over one year.

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CREATIVE

For the purposes of Fiesta, we chose to engage our target, the “young accumulators” and the “midtown mix”, with the Come see why we’re celebrating! campaign. Our billboards will convey a sense of mystery when constant commuters look up and see three successive advertisements for Fiesta grocery stores. The !rst billboard will feature a stuffed piñata and a catchy saying. The second billboard will feature a broken piñata and yet another catchy saying. And !nally, the third billboard will feature various items "owing from the break in the piñata and our tagline, Come see why we’re celebrating!

Aspects of Fiesta we are celebrating are as follows: location, low prices, and customer service. Each of our ads will convey a different element of what it means to celebrate at Fiesta supermarkets.

Implementation

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CREATIVE

Magazine advertisements will accomplish some of the same things billboards will, especially since one of the magazines we have chosen—Texas Monthly—is local. The target market will not only relate to the nature of the magazine, but also the ad. For example, one of our half-page ads features a young girl with an armful of oranges—Orange you glad you dropped by Fiesta? This billboard portrays a sense of family fun through healthy food choices and habits. Encouraging good eating habits is yet another reason for celebration.

In our 30-second television spot, two people are getting ready to go out to a “party” with friends. When more people walk in and see that our main characters are primping, they ask, “Where are you guys headed?” They reply, “We’re goin’ to the party!” Then, the two people get in the car, drive down the road, and end up at Fiesta. They came to see why we’re celebrating!

Implementation

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CREATIVE

Our interactive campaign will feature ads on the top social networking sites. The most popular sites and our ideas to incorporate ideas from the campaign are as follows: Microblogging: Twitter (Our bird tweets; do you? Follow us on Twitter for the latest in grocery shopping.)Bookmarking: Digg (Post suggestions for recipes on !estamart.com from your PC at work or at the of!ce)Video: Youtube (Fiesta shopper experiences) Photosharing: Flicker (Post pictures of favorite dishes for everyone to see; Can’t !nd the items you need by name? Take a picture of it and post it to the site!)Search: Google (Be able to search for a “party” aka Fiesta in your area, complete with weekly specials)Professional: Linked-In Purely social: Facebook (Even though Fiesta already has a Facebook page, we are con!dent that our campaign will increase friendship, especially when incentives such as coupons encourage our target market to add Fiesta, assuming they have their own Facebook page)

Implementation

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Finally, our direct mail package includes an invitation-style "yer that folds and unfolds much like the popular graduation announcements of today. Its unique fold will not only engage our target market, but also imprint the Fiesta brand in our target’s mind.

Implementation

CREATIVE

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CREATIVEPrint

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CREATIVEBillboard

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Billboard

CREATIVE

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Direct Mail

Come celebrate with....

place

stamp

here

CREATIVE

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Client Fiesta Title Fiesta = Party

Spot 30 sec. TV AD Job # 1234

! Page 1

Shot 1: Two professional women in bathroom prepare for the ‘party’

Music: Professional elevator music

Shot 2: Man enters and questions the whereabouts of the ‘party’

Shot 3: Women tell the intruder about the ‘party’

Music: Music is more upbeat

Shot 4: Women enter the vehicle ex-cited about the ‘party’

Shot 5: More excitement builds as women speed to ‘party’

SFX: Engine revving

Shot 6: Alas! The ‘party’ is at Fiesta - Come see why we’re celebrating!

Music fades

CREATIVE

Commercial

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Client Fiesta Title Fiesta = Party

Spot 30 sec. TV AD Job # 1234

! Page 1

Shot 1: Two professional women in bathroom prepare for the ‘party’

Music: Professional elevator music

Shot 2: Man enters and questions the whereabouts of the ‘party’

Shot 3: Women tell the intruder about the ‘party’

Music: Music is more upbeat

Shot 4: Women enter the vehicle ex-cited about the ‘party’

Shot 5: More excitement builds as women speed to ‘party’

SFX: Engine revving

Shot 6: Alas! The ‘party’ is at Fiesta - Come see why we’re celebrating!

Music fades

CREATIVE

Commercial

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BUDGET

All ads, television spots, and billboards are based on monthly !gures

Magazines:Good Housekeeping - $172, 238 per # page adTexas Monthly - $12875 per # page adRedbook - $149,000 per # page ad

TV Channels:Fox Sports Houston - $130,089 per 30-second spot

Interactive Advertising (Internet) - $30/month + $10/1000 impressions

Billboards - $700/per board

Direct Mail - $428,994 for production and circulation

Media Objectives

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EVALUATION

Our objective is to motivate shoppers in: Katy Heights, South downtown, Shepherd, and Montrose areas. Our goal is to provide upscale quality items to the higher income, Anglo, suburbanites. Fiesta Mart is known for developing their markets to accommodate their surrounding neighborhoods. Through the interviews conducted on and off site (at Fiesta Mart) we have determined that the overall target market would prefer basic changes such as better lighting, improved ambiance, and more organization throughout the store. The kiosks would cater to the needs of these upscale shoppers. Ideas include: Coffee Shop, Book store, Nail/Hair Salon, Professional Photography, a Health and Wellness center (vitamins), and a Movie Corner. Fiesta Mart would also bene!t by incorporating a “Customer Loyalty” card, which would be able to track sales and award frequent shoppers.

Commercial

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In conclusion, our campaign set out to emphasize three important aspects of Fiesta’s philosophy: location, low prices, and customer service.

The primary target, “young accumulators” are between the ages of 35 and 55. They live in urban middle class neighborhoods and have no problem collecting goods they !nd necessary. The secondary target, the “midtown mix” is also between the ages of 35 and 55. They live in lower class neighborhoods and are very conscious of what they purchase with their hard-earned money.

Our marketing objectives range from in-store redesign to Spanish-as-a-second-language strategies. We believe that a better layout and more English-speaking employees as well as displays would improve traf!c greatly.

CONCLUSION

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CONCLUSION

Our creative strategy is the perfect !t for our target market, seeing as they value each aspect of Fiesta’s philosophy—location, low prices, and customer service. Hopefully now, more people will Come see why we’re celebrating!

The evaluation has been tailored to test our strategies and prove the effectiveness of each one.