UTZ POTATO CHIPS Integrated Marketing Communications Plan I 2012

WHY NOT LOVE UTZ

Christina Chung

Laura Cutone

Fabricio DiaSilva

Dejan Djordjevic

This campaign won’t beg the question why,

but instead show why not.

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1. Situational Analysis

2. Target Market

3. Communications Budget

4. Marketing Objectives

5. Marketing Strategies

6. Evaluation

AGENDA

1. Situational

Analysis

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In 1921, Bill Utz quit his full-time

job to perfect the potato chip.

▪ found in Hanover, PA – 1921

▪ employ 2,200+ workers with

annual sales of $400+ million

▪ snacks include pretzels, popcorn

▪ environmentally friendly

Today, run by 3rd generation family members and is the largest privately held snack company in the country.

COMPANY

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Manufacture and merchandise the best products

with commitment to customer satisfaction that is 2nd

to none

COMPANY GOAL:

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customers

dress like UTZ

Core audience identified as forty-something, high income, married women into Home & Celebrity News magazines

CUSTOMERS

▪ age: 43

▪ hhi: 81.2K

▪ 78% women

▪ 63% married

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COMPETITORS

▪ Lay’s Potato Chips

▪ Cape Cod Potato Chips

▪ Wise Potato Chips

▪ Doritos

A leader in the snack food market, UTZ produces 1 million pounds of potato chips a week

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The unbroken line of UTZ’s

family management is key to

success and almost 90+ years

of continuous growth.

▪ manufactured at 4 Hanover, PA

facilities

▪ sold in grocery, convenience,

warehouse, and other food

retail stores

COLLABORATORS

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▪ 33 distribution centers between

Maine & Georgia

▪ 800 salespeople and company

trucks deliver directly to stores

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In April 2011, UTZ acquired Zappe

Endeavors which included Zappe's

plants in Louisiana, California and

Pennsylvania thereby making UTZ

a national snack food

manufacturer overnight.

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CLIMATE

▪ by 2015, packaged snack sales expected to reach $77 billion

▪ 85% of U.S. households eat chips

▪ 81% prefer unadorned varieties

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Current potato chip trends.

▪ lighter and crispier

▪ palette pleasing flavors like hot

and spicy or salty and sweet

▪ olive oil and terra chips

▪ macrosnacks

TRENDS The potato chip market grew

22% during the economic

downturn.

Food technicians using computer programs to

design crunchier chips

Researchers working on potatoes with less sugar

content since sugar produces brown spots on chips.

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2.Target Market

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Health-conscious women (30-50) with children

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RESEARCH

▪ 85% women do family’s grocery shopping

▪ spend avg $44.43 per grocery

trip

▪ more engaged in top online

purchase categories women with

children

STRENGTHS

• Been in market for 90+ years with almost

continuous growth

• Commitment to quality and unbroken

line of family management key to success

• Potato chips command strong consumer

loyalty

WEAKNESSES

• Salty snack food industry highly

competitive

• Family-owned & operated may be

preventing UTZ towards next level steps

• Lack of distributors in Midwest & West so

low brand awareness in those regions

THREATS

• Consumers moving toward healthier

snack options like hummus, carrots

• Constant media scrutiny regarding

potato chips and weight gain

• Frito-Lays dominates the marketplace

for potato chips

OPPORTUNITIES

• Zappe Acquisition could provide new

distribution opportunities in West

• R&D to modify existing recipes and

create new health conscious

products

• Increase online sales of products

SWOT ANALYSIS

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3. Communications

Budget

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Current potato chip trends.

▪ not marketing many products

▪ relate dollar costs to focus on

few, specific objectives

▪ cannot compete with Lay’s

marketing dollars

OBJECTIVE

AND

TASK

METHOD

US consumers spend

significantly more on potato

chips than US government

does on energy R&D.

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WHY NOT GROW UTZ.

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UTZ promises health conscious

women the benefit of knowing our

potato chips use the same

dedication to fresh ingredients

today as we have since 1921

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4. Marketing

Objectives

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TO CENTRAL AND WESTERN PART OF US

BRAND AWARENESS IN THOSE REGIONS

CREATE

EXPAND

INCREASE WEBSITE TRAFFIC AND ONLINE SALES

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UTZ TODAY

▪ have UTZ distribution centers

continue moving westward

▪ Indianapolis & Houston

TO CENTRAL AND WESTERN PART OF US

EXPAND

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BRAND AWARENESS IN THOSE REGIONS

CREATE

▪ introduce, persuade, remind

▪ 3 fresh ingredients, since

1921

▪ continuous message

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INCREASE WEBSITE TRAFFIC AND ONLINE SALES

▪ utzsnacks.com/whynotutz

▪ microsite

▪ advertising will drive traffic

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5. Marketing

Strategies

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Advertising Media

Sales Promotion

Public Relations

Direct Response

E-Active

Alternative

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▪ widen reach designed around a

“Not UTZ” campaign

▪ campaign informs using emotional,

brand loyalty strategy

▪ promotion mix

Advertising

S

PR

M

DR

E

AL

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Media

▪ “Not UTZ” 4C FP campaigns in

national magazines

▪ geotargeting/psychographic

targeting

A

S

PR

DR

E

AL

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Sales

Promotion ▪ sampling at youth soccer events

▪ UTZ promo team sponsors

event in designated cities

▪ samplings occur at same time,

telling mom’s about UTZ &

contest

A

M

PR

DR

E

AL

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Public

Relations ▪ UTZ creative pictures contest

▪ winners voted on

utzsnacks.com/whynotutz

▪ 1st, 2nd and 3rd place prizes

include a Modern Family and

Disney prize package

A

M

S

DR

E

AL

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Direct

Response Direct Mail

▪ consumers and businesses

constantly informed

▪ sending coupons, links, online

catalogue and “useful” articles

A

M

S

PR

E

AL

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E-Active

Banner Advertising Online

▪ reinforce message from print

ads: healthy snacks for families

▪ target our key market segment

(women w/children) in our top

Midwest & West cities

A

M

S

PR

DR

AL

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E-Active Banner Advertising Web Sites

http://www.parenting.com/

http://www.parents.com/

http://www.womansday.com/

http://www.bizziemommy.com

http://www.workitmom.com

http://www.cafemom.com/

http://www.workingmother.com

A

M

S

PR

AL

DR

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Alternative Product Placement

▪ Mad Men (2008)

▪ increased brand awareness by

reaching 1.5 million live

viewers plus DVR & On Demand

A

M

S

PR

DR

E

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Alternative

Product Placement

▪ Modern Family (2012)

▪ goal: Increase brand awareness

▪ advantages:

▪ wide reach

▪ low per viewer cost

M

A

S

PR

DR

E

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Advertising Media

Sales Promotion

Public Relations

Direct Response

E-Active

Alternative

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6. Evaluation

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EVALUATION

METHODS

▪ sales

▪ message evaluation

▪ brand tracker

▪ online evaluation metrics

▪ behavioral evaluations

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Sales

M

BT

OM

BE ▪ measure online sales by

region

▪ compare sales numbers in

our target cities vs. the rest

of the Midwest and West

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Message Evaluation

Online Copytesting ▪ consumers assess the ad

▪ cost-effective

▪ immediate results

Results measure ▪ brand image and message

▪ persuasive power of the ad

▪ potential responses

▪ how memorable the ad and brand are

BT

OM

BE

S

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Brand Tracker ▪ two times per year

▪ consumers who represent

our target audience

▪ ask same questions each time

▪ results measure: ▪ perception of brand

▪ perception of message

▪ perception of Utz vs. competition

S

M

OM

BE

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Online Evaluation

Metrics Results measure

▪ website traffic

▪ visits via online banner

advertising

▪ participation in

online photo contest

S

M

BT

BE

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Behavioral Evaluations

Sales & Response Rates

▪ calls to campaign-specific toll-free number

▪ website visits & email inquiries in response to

campaigns

▪ redemption rates for campaign coupons/special

offers

S

M

BT

OM

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WHY NOT TRUST UTZ?

THE

END

49 Q?

UTZ POTATO CHIPS Integrated Marketing Communications Plan I 2012