honey nut cheerios 1
TRANSCRIPT
Honey Nut Cheerios
Bryan GriffithProfessor Kornblau
Media Planning
Introduced by General Mills Cereal Company in
1979. This is the second variation from Original
Cheerios, it is sweeter than the original, with a honey and almond flavor.
Honey Nut Cheerios is the number one brand in the cold cereal industry!
Honey Nut Cheerios History
Strengths Weaknesses
Opportunities Threats
SWOT Analysis
Strengths
Certified by the American
Heart Association
12 Vitamins and minerals
Weaknesses
Uses natural flavoring instead of real nuts
Contains allergens
Internal Strengthens and Weaknesses
Opportunitie
s
Growing Hispanic and
African American markets.
Higher want to better quality
and more nutritious food
Threats
-Post-Kellogg's
-Recent water droughts causing decrease supply of wheat.
External Opportunities and Threats
Competitive Analysis
Honey Nut
Cheerios
Honey Bunches of Oats
Regular Cheerios
Froasted Flakes
0100200300400 336.3 302.1 287.9 252.2
Revenue
Revenue
0
45.22 4.69 4.47 3.91
Market Share
Market Share
Source: Sosland Publishing Corporate Profiles- Milling & Baking News Supplements, October 11, p. 18 from SymphonyIRI Group Inc.
White, African American or Hispanic families with
four or more people in the family. (Hispanic Index: 135, Black Index: 142, Family with 4+: 137+)
Most preferred for ages 18-44 but most likely includes younger kids since the more kids a family has the more likely they will buy Honey Nut Cheerios (Index: 119-128)
The highest index for the age of a child in the household was ages 6-11 years. (Index: 185)
The more children the higher the index (1=152, 2=134, 3=153, 4=159, 5=158…)
Target Audience: Demographics
DEMOGRAPHICS DATA
47.1652.84
GENDER
MALEFEMALE
13.18
19.1
23.39
20.64
10.54
13.15
AGE
18-2425-3435-4445-5455-6465+
Demographics: Race
Honey
Nut
Che
erio
s
Honey
Bun
ches
of O
ats
Cheer
ios
Fros
ted
Flak
es0
100
200
300
WhiteBlackAsianHispanic
Race
WhiteBlackAsianHispanic
Demographics: Hispanic
Cuban
Mex
ican
Puer
to R
ican
Other
020406080
100120140160
84
142 135 140
PercentageIndex
People & Children in Home
1
2
3
4
5
6
7
8+
Children IndexPeople Index
un-der 2 yrs
2-5 yrs
6-11 yrs
12-17 yrs
0
40
80
120
160
200
Index
Index
Shopping Behavior:
Buyers are people who prefer to buy things that friends or neighbors approve of. (Index: 125)
Enjoy shopping with children (Index: 116) Child has significant impact on brands parent(s)
choose. (Index: 149) Social Interaction
Other people say these buyer’s enthusiasm is contagious. (Index: 117)
Other people copy what they do and they are very social people. (Meeting new people and trying new things) (Index range: 119-129)
Target Audience: Psychographics
Marketing Objectives
1
• Increase market share by 10% (Market share is at 5.22%) in the next 18 months.
2
• Maintain number one position and Increase sales by 5% over the next 6 months.
Media Objectives
• Have a yearly average of 100 GRPs per week.
Reach & Frequency
• While maintaining an advertising budget around 74,000,000, create a national awareness campaign using TV and internet.
Share of View (Ad expenditures)
Company Company Ad
SpendingBrand Brand Ad
Spending
General Mills 246.0 M Honey Nut Cheerios
74.7 M
Kellogg 162.3 M Mini-Wheats 53.9M
Post 13.8 M Pebbles 13.6 M
General Mills 246.0 M Cheerios 34.8 M
Kellogg 162.3 M Frosted Flakes 40.6 M
Top Cereal Advertising Spending
73.7
49.9
29
19
12.69.8
7.97.12.1 0.1
Ad Spending in MillionsHoney Nut Cheerios
Cheerios
Cinnamon Toast Cruch
Chex
Lucky Charms
Reese's Puff
Trix
Cocoa Puffs
Cookie Crisp
Kix
General Mills Ad Spending by Brand
Geographic Regions
0
20
40
60
80
100
120
CDIBDI
Focus more advertising expenses
Top 14 DMA’s
DMA CDI BDIATLANTA 103 117BOSTON 98 77CHICAGO 97 111CLEVELAND 101 92DALLAS 104 115DETROIT 100 93HOUSTON 102 94LOS ANGELES 100 127MIAMI 97 81NEW YORK 94 99PHILADELPHIA 101 128SAN ANTONIO 102 146SAN FRANCISCO 89 59WASHINGTON DC 96 95
High CDI, Low BDI
• CDI=98• BDI=77• Great opportunity to focus more advertising dollars
Boston
• CDI=101• BDI=92• Focus more advertising dollars
Cleveland
• CDI=102• BDI=94• Focus more advertising dollarsHouston
Maintain advertising
expenditures
Chicago
Los Angeles
Philadelphia
San Antonio
Atlanta
Dallas
High CDI, High BDI
These markets have been doing great in the category and for our brand. We will continue putting a lot of advertising in these areas.
San
Fran
cisco
Washington DC New York
Low CDI & BDI
These DMI’s have a low CDI and BDI which means that we will focus less of our advertising expenses in these areas. But because the CDIs are close to the average we will still focus on these areas
Media Classes
TV
Internet
Radio
The top media classes that I decided to choose are TV, Internet, and radio.
I will focus more advertising expenses for TV then for Internet and TV.
Media vehicle selection will be influenced by whether or not they are viewed by children.
0
100
200
Index
Index
Top TV Vehicles
Top Network TV Choices
Index over 150
Adult Swim
Cartoon Network
Disney
Disney XD Fuse
MV2
Nickelodeon
Teen Nick
**TV shows are centered around children programming
Network Daypart 2th/4th
Qts CPP100 GRP 1st/3rd
Qrts CPP100 GRP
Adult Swim Prime $24,200 $2,420,000
$15,500 $1,550,000
Cartoon Network
Prime $24,200 $2,420,000
$15,500 $1,550,000
Disney Prime $24,200 $2,420,000
$15,500 $1,550,000
Disney XD Prime $24,200 $2,420,000
$15,500 $1,550,000
FUSE Late Night
$19,400 $1,940,000
$16,800 $1,680,000
MTV 2 Late Night
$19,400 $1,940,000
$16,800 $1,680,000
Nickelodeon
Prime $24,200 $2,420,000
$15,500 $1,550,000
Teen Nick Prime $24,200 $2,420,000
$15,500 $1,550,000
Network TV Cost Estimates
Website Advertising
Website IndexABC.COM 114ABOUT.COM 110AMAZON.COM 106ASK.COM 129CWTV.COM 177DISNEY.COM 145GAMESPOT.COM 150ITUNES.COM 135MOVIEFONE.COM 149MYSPACE.COM 147TWITTER.COM 143UFC.COM 166YOUTUBE.COM 130
MySpace ROS= $3.50 cost per thousand
3.50 x 1,000= $3,500 $3,500 x 100= $350,000 (For 100 GRPs)
YouTube=$5.00 CPM$5.00 x 1,000= $5,000$5,000 x 100= $500,000 (For 100 GRPs)
ESPN brand= $22.00 CPM$22.00 x 1,000= $22,000$22,000 x 100= $2,200,000
(For 100 GRPs)*Used this CPM because my target are high users of sport websites
Times Index CPPSAT - SUN 7PM - MID 137
$46,000
MON - SUN 7PM - MID 125 $46,000
MON - FRI MID - 6AM 125 $46,000
MON - FRI 7PM - MID 124 $46,000
SAT - SUN MID - 6AM 121 $46,000
MON - SUN MID - 6AM 117 $46,000
SAT - SUN 3PM - 7PM 117 $46,000
Top Radio Times
Final Media Choices
TV
Cartoon Network
Disney
Disney XD
Nickelodeon
Internet
MySpace (Regular and
Music)
YouTube
Radio
A(25-54)
Percentage of Ad spending
94.2
1.25 4.87
Percentage of Ad Spending
TVInternet Radio
TV:$69,720,000
Internet: $924,000
Radio: $3,600,000
Total:$74,000,000
First Quarter Flow Chart
Honey Nut Cheerios January February March
31 7 14 21 28 4 11 18 26 4 11 18 25TV
Prime Time Cartoon Network Disney Disney XD
Nickelodean Internet
MySpace.com
YouTube.com
MySpace Music
Facebook.com Radio A(25-54)
First Quarter GRP & Price
Cartoon Network
• 300 GRP• $4,650,00
0
Disney
• 300 GRP• $4,650,00
0
Disney XD
• 300 GRP• $4,650,00
0
Nickelodeon
• 300 GRP• $4,650,00
0
MySpace
• 1200 GRP• $42,000
YouTube
• 1200 GRP• $60,000
MySpace Music
• 1200 GRP• $45,000
• 1200 GRP• $84,000
Total: $18,831,000
Second Quarter Flow Chart
Honey Nut Cheerios April May June
1 8 15 22 29 6 13 20 27 3 10 17 24TV
Prime Time
Cartoon Network Disney Disney XD
Nickelodean Internet
MySpace.com
YouTube.com MySpace Music
Facebook.com Radio A(25-54)
Second Quarter GRP & Price
Cartoon Network
• 200 GRP• $4,840,00
0
Disney
• 200 GRP• $4,840,00
0
Disney XD
• 1200 GRP• $4,840,00
0
Nickelodeon
• 200 GRP• $4,840,00
0
MySpace
• 1200 GRP• $42,000
YouTube
• 1200 GRP• $60,000
MySpace Music
• 1200 GRP• $45,000
• 1200 GRP• $84,000
Radio
• 200 GRP• $1,800,00
0
Total: $21,391,000
Third Quarter Flow Chart
Honey Nut Cheerios July August September
30 1 15 22 29 5 12 19 26 2 9 16 23
TV
Prime Time
Cartoon Network
Disney
Disney XD
Nickelodean
Internet
MySpace.com
YouTube.com
MySpace Music
Facebook.com
Radio
A(25-54)
Third Quarter GRP & Price
Cartoon Network
• 200 GRP• $3,100,00
0
Disney
• 200 GRP• $3,100,00
0
Disney XD
• 1200 GRP• $3,100,00
0
Nickelodeon
• 200 GRP• $3,100,00
0
MySpace
• 1200 GRP• $42,000
YouTube
• 1200 GRP• $60,000
MySpace Music
• 1200 GRP• $45,000
• 1200 GRP• $84,000
Radio
• 100 GRP• $900,000
Total: $13,531,000
Fourth Quarter Flow Chart
Honey Nut Cheerios October November December
30 7 14 21 28 4 11 18 25 2 9 16 23TV Prime Time Cartoon Network Disney Disney XD Nickelodean Internet MySpace.com YouTube.com MySpace Music Facebook.com Radio A(25-54)
Fourth Quarter GRP & Price
Cartoon Network
• 200 GRP• $4,840,00
0
Disney
• 200 GRP• $4,840,00
0
Disney XD
• 1200 GRP• $4,840,00
0
Nickelodeon
• 200 GRP• $4,840,00
0
MySpace
• 1200 GRP• $42,000
YouTube
• 1200 GRP• $60,000
MySpace Music
• 1200 GRP• $45,000
• 1200 GRP• $84,000
Radio
• 100 GRP• $900,000
Total: $20,491,000
TV Schedule Rationale
Flighting (4 weeks on then four weeks off) to keep HNC fresh in the minds of audience
No TV ads for months where children have vacation because they are likely to sleep in and miss breakfast
Focus on networks that are children oriented because kids and adults with kids are more likely to eat HNC
Internet Schedule Rationale
Focus on sites where children and adults with
children visit
Continuous strategy,
advertising all year round
Make up for months with
no TV
Radio Schedule Rationale
Concentrates on summer months for
lack of TV ads
Also last week of Dec for Christmas and New
Years resolutions
Keep HNC in the mind of consumers
Sosland Publishing Corporate Profiles- Milling & Baking News
Supplements, October 11, p. 18 from SymphonyIRI Group Inc.
Experian Simmons. (2010). Spring 2010 National Household Consumer Survey adult survey 12-month [Data file]. Retrieved from http://oneview.experian.com
"Honey Nut Cheerios®." Cheerios. N.p., n.d. Web. 04 Oct. 2012. <http://www.cheerios.com/Products/Honey-Nut-Cheerios?nicam1=Paid_Search>.
http://adage.com/article/news/general-mills-sees-sales-rise-media-spending-boost/143216/
Works Cited