Professional Documents
Culture Documents
Kraft Mac & Cheese Integrated Marketing Communications Plan
COMM 211: Principles of Advertising
The Kraft Heinz Company Kraft Mac & Cheese
Client’s Angels
Tyler Hughes, Melissa Messler, Briana Mcnulty
08/12/2016
1
Page Number Content
3 Agency Philosophy
4 Executive Summary
6 Review of Marketing Plan
10 Company Snapshot
12 Description
13 SWOT Analysis
16 Key Benefits
19 Competitive Review
22 Programs
24 Marketing Goals
25 IMC Objectives and Strategies
30 Creative Recommendations
33 Creative Executions
47 Media Recommendations
50 Media Flowchart
51 Budget Breakdown
52 IMC Recommendations
55 Campaign Flowchart
56 Measurement and Evaluation
59 Budget Summary
60 Conclusion
62 Appendices
64 References
2
Client’s Angels brings together three unique individuals, all from various backgrounds,
who have joined together to work for you: our client. At Client’s Angels, we want to give
you the most professional, seamless experience possible. We understand that there are
numerous agencies that are vying to sign a new client to their roster, but we find that
these agencies do not offer the unique stance that we offer.
We’re not afraid of words like “digital” or “social”: We’re not afraid to tackle a
brand’s digital and social media issues, which is why we take the time to pay attention
to analytics, website traffic, and creating quality digital and social media content.
We’re creative and always think quickly on our feet: While we make sure to pay
attention to metrics and data, we also find balance in delivering creative content. We
deliver professional writing and art samples to clientele, but we also ensure that our
unique, edgy, and fun creative elements are stamped and integrated into our work.
We take the word “communications” seriously: There’s no issue that we won’t
tackle because we are prepared to actually communicate with our clients. Whether it’s
researching the client’s background extensively to address problems quickly, taking the
time to draft written proposals and campaigns, or familiarizing ourselves with our client’s
needs, we want our clients to know that consistent communication and always meeting
their needs in a dedicated and timely manner are our top priorities.
We take pride and ownership in delivering this experience to our clientele because this
is what distinguishes us against our agency peers. We’re not saints, we’re even better
and we’re here to give our client what they deserve: a professional walk in the clouds.
3
Kraft Mac & Cheese is a packaged, dry macaroni and cheese mix produced by the Kraft
Heinz company. In production for over 75 years, the product has been a staple to the
Kraft brand and has taken on various incarnations over the years to serve Kraft’s target
audience.
In early 2016, Kraft introduced an ingredient shift to its popular macaroni and cheese
product, replacing artificial coloring with natural ingredients such as turmeric, annatto,
and paprika. Hesitant to announce the addition of the new natural ingredients to the
product because of fears that consumers perception of the product would be changed1,
Kraft did minimal coverage and announcements of the product renovation. Kraft would
later announce that the renovation was the “world’s largest blind taste test,” as
consumers were not aware that the product had fundamentally changed.
Client’s Angels understands that Kraft had much success later in 2015 and early in
2016 with the launch of the ingredient shift. Their main goal in implementing this
strategy was making sure that consumers weren’t overtly aware of the shift, as to not
make impressions on the brand and shift consumers’ psychology that the product had
lost its brand equity. We want to build off of this success, but we also think that it is time
that consumers embrace the ingredient change, otherwise, Kraft macaroni and cheese
may continue to be seen as a “junk food” brand and the product may follow the leading
trend of declining boxed prepared meal sales.
Our major target audiences for this campaign includes women, ages 2535, who are
mothers and who want to utilize Kraft macaroni and cheese for family dinners. These
mothers want to give their children meals that they prefer, but also meals that hold
1
Bariso, Justin. “How Kraft Used Psychology to Make Its Mac and Cheese Go Viral.” Inc.com. Web. 21 Mar.
2016.
4
healthy patterns in them as well. We want to reach older consumers because they have
the power to actually buy the product. Also in the target audience are millennials and
“freefrom” consumers, who want “freefrom” products2, products free of artificial flavors
and colorings, chemical preservatives, and GMOs. To this target audience, we want to
consistently communicate that the the new, rebranded Kraft macaroni and cheese is
well suited for their purchase because it is steadily leaning into a “freeform” product.
The objectives for this campaign include increasing 2016 net sales of Kraft macaroni
and cheese of 80 million units by 5% by the end of the fourth quarter of 2016, increasing
brand sales of $6.9 billion by 5%, and increasing the position of the brand in the food
and beverage industry from number 5, to number 2. This campaign also seeks to raise
awareness amongst the targeted audience on social media of the product’s natural
ingredients and the brand’s shift into the natural and organic food sector by 50%.
These objectives will be achieved through an effective integrated marketing
communications plan, including creative television and digital advertisements, a public
relations campaign, social media tactics, direct mail and marketing to the target
audience, and use of coupons, instore events, and sweepstakes to boost sales.
Through the combination of these promotional elements, Client’s Angels believes that
this campaign will create measurable and repeated success for Kraft macaroni and
cheese, which will be evaluated near the end of the fourth business quarter of 2016.
In conclusion, Client’s Angels offers Kraft a unique way to raise awareness of the use of
natural ingredients in its macaroni and cheese. We also want to present Kraft with the
opportunity to position itself as a dominant competitor in the natural and organic food
sector through one of its popular and signature products. With a budget of $665,632, a
set timeframe, and a commitment to success that only Client’s Angels can offer, we
invite you to #noticethenatural and offer your consumers the thing that they want most:
a tasty macaroni and cheese that is good for them.
2
Gelski, Jeff. "Mac and Cheese Moves to Forefront of 'freefrom' Trend." Food and Beverage News,
Trends, Ingredient Technologies and Commodity Markets Analysis. 24 May 2016. Web. 10 Aug. 2016.
5
Industry background:
Over the decades, Kraft has saw its brand grow and new product lines of
different flavors and pasta shapes have been introduced to its portfolio. Kraft Macaroni
and cheese is currently perceived as an inexpensive, easytomake comfort food, with
high value and convenience.
The Mac and Cheese Dinner was originally marketed as Kraft Dinner with the
slogan “a meal for four in nine minutes for an everyday price of 19 cents.” It was later
renamed to Kraft Macaroni & Cheese. The product has always been promoted toward
children encouraging them to ask their parents for “The Blue Box.”
Company Overview + Growth:
Kraft Foods Group, Inc. is one of the largest consumer packaged food and
beverage companies in North America and worldwide. Kraft Foods Group and H.J.
Heinz Company announced that they would merge into The Kraft Heinz Company,
becoming the third largest food and beverage company in North America. In 2014, Kraft
gained a stock appreciation of approximately 38% after the merger announcement. The
biggest revenue streams of Kraft are from the cheese and refrigerated meals segments.
Kraft Foods North America generates 73 percent of revenues for the company.
6
Current trends/developments affecting the promotion program:
A recent trend in the food industry has seen a change in preferences amongst
the millennial generation. According to the latest survey from Mintel, there is a rising
health awareness among consumers and this is causing them to purchase healthier
organic food options. On the other hand, millennial consumers are also starting to buy
more convenient, faster to make, food, and packaged foods have increased since 2015.
Higher convenience foods will drive the prices of packaged food up in the years to
come, which overall is a good sign for companies such as Kraft.
Macroenvironment factors and issues:
Demographic
Kraft Macaroni & Cheese is preferred by higher income consumers ($100k125k) and
Caucasians who tend to be lower middle age (3544). These consumers are more likely
to be female and have children.3
Economic
Interest rate: According to an article of the Business Wire, 2010, “Food companies
continue to seek acquisitions and organic growth to boost their overall growth rates.
Debt reduction is not likely except for Kraft and Ralcorp Holdings, Inc., since both
companies increased leverage materially for acquisitions in 2010.”
Level of inflation: As a food, bakeries, and biscuits producer Kraft is very sensible to the
rate of raw material, corn, milk, flour, eggs.
Employment levels: According to Ellen Simon, 2006, when Kraft Foods bought Nabisco,
25% department was laid off on the same day in 2004. They expected to save $1.5
billion in annual costs by 2017 because of this.
Exchange rate: Adapted from what Timothy McLevish (Chief Financial Officer) said in
the Earning conference call in November 2010, Kraft Foods has a very complex
portfolio of currencies, which explains why they are less impacted by just a decline in
the value of the dollar or an appreciation of the dollar because they have a lot of input
costs.
"Kraft Macaroni & Cheese Consumer Insights and Demographics | InfoScout.co." Infoscout.co.
3
N.p., n.d. Web. 27 July 2016.
7
Political
The stability of the political environment: According to K. Blanchard, 2009, the decrease
in the company's results is due to foreign currencies, it could also be linked to the
inflation and soaring of raw material and petroleum.
Local taxation: Every state in the United States has different taxation and in some there
are low rate of taxation.
Government involved: Irene Rosenfeld, Chairwoman and CEO of Mondelēz, declared in
an interview with David Lieberman in 2010, 'I don't think there's any indication that
having the government involved will necessarily make that a more effective process or
have the desired outcome. There's ample evidence that we can in fact work together in
a productive way, and that's a more effective way to address the issue.' This answer
illustrates that the government is neither apart from the policies of the company nor
influencing strategies.
Social welfare policies: According to the Right vision news, 2010, 'People for the Ethical
Treatment of Animals has been buying shares for seven years and now owns a piece of
at least 80 companies, including Kraft Foods. It hopes to influence their animal welfare
policies on such things as how chickens are slaughtered or buying pork from suppliers
that keep pregnant sows in small crates.' That means Kraft should take social policies
into consideration as it appears to be relevant in people’s mind and consumer
behaviour.
Legal
Legal protections: Due to an Equal Employment Opportunity Commission's affair in
which Kraft was sued, the company 'has agreed to train managers on laws prohibiting
age discrimination.' (Reuters, 2002)
Consumer laws, right to consumers' products, components: According to Anna May
Kinney, 2008, 'During September 2000, Kraft Foods Inc. scrambled to recall taco shells
made from StarLink corn, a type of genetically modified corn unapproved for human
consumption'. Consumers have the right to know what they are eating and the right to
choose foods with GMOs or nonGMOs.
Sociocultural
Lifestyle trends: The issues of obesity, healthcare, and preference of organic products,
all play a key role in how the product is viewed. According to Kristopher J. Blanchard,
2009, the rate of obesity in North American boys increased from 11% in 1980's to over
30% in 1990's. This trend can either represent a weakness for Kraft macaroni and
8
cheese if it is viewed as an unhealthy product, or an opportunity that the brand can
mount if it seeks to transition into natural and organic food markets.
Consumerism popular attitude: Kraft’s interest as a brand is following consumers'
habits and adapting their products to meet the demands and lifestyles of their
consumers.
Environmental
Environmental issues: Jonathan Horrell, Corporate Affairs Director of Kraft, put forward
Kraft's implication in environmental issue across the cycle journey, which "highlights the
fact that [Kraft is] taking a more active attitude towards environmental issues."4
Ecological: Kraft is gradually adapting a sustainable attitude and strategy by focusing
on the raw materials used in its macaroni and cheese production, methods of
production, transportation of the finished product to grocery stores, and the recycling of
packaging.
Waste disposal: Kraft Foods' manufacturing plants are making substantial headway
towards sustainability goals.
4
"Market Position and Strategy for KRAFT FOODS INC." UKEssays. N.p., 23 Mar. 2015. Web. 26
July 2016.
9
Place in industry (size, growth, image)
Kraft is developing new and creative ways to attract consumers by introducing
new methods of sales promotion, new products and new ingredients to their famous
macaroni and cheese dinners. The company employs 117,000 and still growing. Their
sales are around $34.7 billion (2000 pro forma) and the brand is valued at $9 billion.
According to Forbes, Kraft Foods is #62 in the world’s most valuable brands list.5 The
macaroni and cheese dinners are the most famous of Kraft's products and it has a great
impact on the company. The company’s current product list shows at least 50 macaroni
and cheese varieties sold in stores, including 18 different flavors that come in the
classic blue box. Recently Kraft’s macaroni and cheese dinners’ image has improved
as the brand has removed artificial preservatives, flavorings, and dyes from the product.
Sales History
When Kraft announced in April 2015 that it was removing artificial flavors, dyes, and
preservatives from its mac and cheese, the company sold 80 million boxes when the
product with the new ingredients was introduced in January 2016.6
5
Tuttle, Brad. "5 Amazing Facts About Kraft Macaroni and Cheese and Heinz Ketchup." Time. Time,
26 Mar. 2015. Web. 26 July 2016.
6
"Kraft Macaroni & Cheese: A History." Tribunedigitalchicagotribune. N.p., 14 Aug. 2015. Web. 27
July 2016.
10
Target markets
Kraft’s target audience for its macaroni and cheese product include millennials,
economicallystrapped consumers, consumers who are interactive with technology, and
those who focus on nutritional value and wellbeing when shopping. Middle Income
consumers make up about 51.1% of the product’s target audience. Millennials represent
26% of the U.S population currently, and one can see that it is their influence that is
creating a cultural shift toward emphasis on healthy, quality of life and “real food.” These
millennials exhibit a shopping behavior that can be described as more planned and full
of purpose.7
Corporate Strategy
As a brand, Kraft focuses on three “C’s” in its strategy in response to changes in
markets.
Consumers: Kraft pays attention to the change in consumers’ income, background,
demographics, and values. Kraft is creating new food products and providing new
flavors in accordance to the demands from the Hispanic population and millennial
generation, both of which have more potential to increase the company’s sales and
profits.
Customers: Having unique price packs are essential for Kraft to gain more of the market
shares in both traditional and nontraditional channels. Kraft will continue focusing on
promotion programs to increase the volumes.
Communication: Kraft bases its strategy on the change of the market and consumers’
demands. This allows Kraft to focus on how to improve its efficiency and whether
changes made previously were effective by using data measuring tools. Kraft believes
that it is important to hear customers’ thoughts, this is why they want to communicate
through digital and dataready mediums such as social media. This is useful because it
reflects the market’s response to any change the company has made in its products and
strategy.8
7
"Frozen Foods Consultative Group." Nature 162.4118 (1948): 522. Kraft Foods Group. Cagny
Conference, 18 Feb. 2014. Web. 27 July 2016.
8
h ttps://tippie.uiowa.edu/krause/spring2015/krft_sp15.pdf
11
Market share, sales, growth
Within its grocery segment, where most consumers buy the mac & cheese dinners,
Kraft is the second leading company, behind Conagra Foods Inc., with 17.14% market
share. Krafts sales are about $6.9 billion and currently increasing. Kraft’s market is
always changing and this is why the company has to capture profitable growth by
evolving their playbook: reinventing marketing, extending innovation to renovation,
building brand ubiquity across retail channels, providing total cost management and
reinvesting 50 cents of every $ of cost savings back into brands and people. By evolving
these, Kraft has managed to grow and has opportunity for growth.
The graph below demonstrates the grocery sales trends for 2015 and shows how boxed
prep dinners are gradually declining, giving us the opportunity to strategically develop
the Kraft brand and their macaroni and cheese products.
12
Strengths
Strong manufacturing and distribution ability: Kraft has 34 manufacturing and
processing facilities in the U.S. and 2 in Canada. The company also operates 36
distribution centers in the U.S. and 3 in Canada. Each of these distribution centers
includes facilities for storing refrigerated, dry, and frozen goods. This strong
manufacturing and distribution network allows Kraft to supply fresh and high quality food
and beverages to its customers.
Nutritional Value The nutritional value of Kraft macaroni and cheese is similar to its
largest competitor in the organic and natural food sector, Annie’s. They have similar
numbers of calories, protein, sodium, and fiber, while Annie’s apparently has more
saturated fat. This works in favor of the Kraft macaroni and cheese product because if
consumers wanted to compare both products, they would have no basis to call the
product unhealthier than its competitor.9
Established brand Kraft has dominated the food and beverage industry for over 75
years. Because of this, its brand equity is very high with consumers. More so, when the
KraftHeinz merger took place it also came associated with a costsaving plan, aiming
for an annual reduction in $1.5 billion by the end of 2017. After the merger, Kraft’s
market in North America, will have higher economies of scales, meaning that they will
save costs by increasing the level of production. This will bring forward a lot of positive
influence for Kraft’s credit rating as well as brand loyalty, since North America is Kraft’s
main market.
9
Foster, Kim. "Why You Should Never Make Box Macaroni & Cheese Again: A Manifesto Imperfect
Parent." Imperfect Parent. 2008. Web. 10 Aug. 2016.
13
Ease of production Kraft macaroni and cheese is arguably an easy product for families
and those who are “on the go” to use. Six simple steps allow anyone to make a box of
the classic product, which includes boiling water, cooking pasta, and combining the
ingredients all available in the box to create a simple but classic meal.
Weaknesses
Cash Reserve Concern: Kraft recorded a sharp drop in free cash flow from $4,379
million in 2013 to $608 million in 2014, which raised a cash reserve concern. Although
Kraft increased its dividend payout in 2014, investors still will doubt whether Kraft can
have a good liquidation in the future to avoid credit degrading and to ensure the ability
to afford cost of debt and dividend payments.
Product Recalls: In March 2015, Kraft recalled 6.5 million cases of its cheese product
which were thought to contain metal; in May through June of 2014, Kraft recalled 1.2
million boxes of the macaroni and cheese product which were not properly stored and
thought to cause illness. In October 2013, Kraft recalled 735 thousand varieties of its
cheese products which were thought to spoil before expiration date. By having Kraft
being involved in all these recall issues it might lower consumers’ satisfaction and give
Kraft a bad reputation, as well as increase its expenses.
Nutritional Value and brand image Kraft macaroni and cheese has been seen by many
as a “junk food” product, a product that has no nutritional value and is unhealthy. This
has severely impacted the entirety of the brand itself as consumers, especially
“freeform” consumers, feel less likely to buy a product that has no nutritional or healthy
benefits. Even with the inclusion of natural ingredients into the product, the brand still
faces criticism that macaroni and cheese isn’t healthy for consumption. 10
Opportunities
Market Expansion: As Kraft continues to advertise the natural ingredients in its
macaroni and cheese product, it may have the opportunity to develop and establish
itself in a new market that the brand has yet to dominate, the organic and natural foods
market.
“Betterforyou” Options: In North America increasing demand for healthy foods is a
great opportunity for Kraft as it can create into “betterforyou” options. Kraft has already
invested significant research into healthier products and has changed its ingredients
10
Tascarella, Patty. "Kraft Heinz Hoping New Mac & Cheese Recipe Means More Sales, Market Share."
Widgets RSS. 08 Apr. 2016. Web. 10 Aug. 2016.
14
from processed to a more healthier recipe (removed artificial flavors, dyes, and
preservatives).
Threats
Rising price of commodities: In the past few years the price of dairy products, meat,
coffee, and beans has gone up, which are all part of Kraft’s top 5 revenue producing
product categories. Because of this, Kraft has raised its prices across 45% of its product
portfolio, this has made Kraft’s market share decrease in a few product categories, but
the most affected ones are the cheese and meat categories.11
Agricultural practices As a brand, Kraft could face major backlash if their agricultural
practices and relationships with produce farms, dairy partners, or workers is not positive
or if their practices with these entities are not transparent with their consumers. More
than ever, food brands are finding more opposition with consumers when they are not
transparent with their agricultural or production practices with consumers. Kraft must
mitigate this by making this information readily available to their stakeholders.
11
https://tippie.uiowa.edu/krause/spring2015/krft_sp15.pdf
15
There are many benefits that the Kraft Mac & Cheese Dinners bring to the market and
to its target audience, these benefits are the following:
● Easy to make comfort food
● Inexpensive
● Convenient
● Healthy (removed artificial flavors, dyes, and preservatives)
● Minimal ingredients needed
Brand Image
Kraft macaroni & cheese has been one of the most iconic American meals, with both
children and parents recognizing the brand for almost 80 years. Kraft macaroni &
cheese has outstanding brand equity among its consumers in its current market of
packaged comfort food. Its current move towards “better for you” products is in line with
healthconscious consumer trends. Currently Kraft is trying to change their brand image
from an unhealthy, packaged comfort food to healthy, organic convenient meals. 12
Positioning
Kraft’s has focused on carefully leveraging the consumers changing tastes and lifestyles
to strengthen its products. Kraft’s management team saw that there is a high growth in
the healthy packaged food business. Their assessment revealed that due to changing
lifestyles, demographics, single parent families, and two working parents that the
healthy packaged food segment presented a big opportunity for their business.13
12
Baertlein, Lisa. "Kraft Challenged by Healthier Macaroni and Cheese Brands."Reuters. Thomson
Reuters, 30 Mar. 2014. Web. 05 Aug. 2016.
13
Magwood, Johnny D., Dr. "Kraft Foods Inc. – Marketing and Managing the Customer Relationship
." Customer Think. N.p., 27 June 2015. Web. 05 Aug. 2016.
16
Kraft is now focusing on positioning its brands and products to a healthier market. To do
this the company is doing the following:
● Reducing calories and nutrients to limit
● Beneficial substances, food groups and nutrients to encourage
● Simpler ingredient lines
● Farm to consumer
Client’s Angels Positioning Statement
“Kraft macaroni and cheese is using all natural ingredients in its recipe because we
know that giving natural ingredients and a healthy option to your family, your friends,
and your “on the go” is just as important as having a meal that is tasty, popular, and that
has been on your shelf since you were a kid who was “on the go.”
Perceptual Map
The graph below shows that Kraft is perceived as possessing high quality compared to
competing brands, which means that people are willing to pay growing prices for Kraft
products such as their macaroni and cheese.14
14
http://image.slidesharecdn.com/kraftanalysis141213215920conversiongate01/95/kraftanalysis
13638.jpg?cb=1418508053
17
Category Development Index (CDI)
CDI = (54%/37%) X 100 = 146
This was calculated by taking the percentage of mac and cheese total sales in the
boxed prep dinners market and dividing it by the percentage of total U.S. population in
the same market and then multiplied all of it by 100.
An index number higher than 100 means that the product category’s sales in the market
is high, but not to an extreme. The CDI of 146 for mac and cheese in the boxed prep
dinner market shows that the boxed macaroni and cheese has a strong presence in the
market.
Brand Development Index (BDI)
BDI = (78%/37%) X 100 = 211
This was calculated by taking the percentage of Kraft mac and cheese total sales in the
boxed prep dinners market and dividing it by the percentage of total U.S. population in
the same market and then multiplied all of it by 100.
An index number higher than 100 means more market potential exists and there is high
potential for kraft mac and cheese development.
Analysis of CDI and BDI
Both CDI and BDI have an index number higher than 100, this means that the boxed
prep dinners market has a high market share and a good market potential. This market
usually represents good sales potential for both the product category (mac and cheese)
and the brand (Kraft mac and cheese).
18
Direct and Indirect Competitors
Direct: Smaller brands made with more natural ingredients are becoming the main
competitor. Similar food and beverage companies have been trying to keep up with the
consumer health trend in order to stay on top.
Annie’s INC
Annie’s is a Berkeley Californiabased maker of natural and organic pastas, meals and
snacks. Annie’s Inc is a key rival in Kraft’s success because of the natural and organic
foods they provide for consumers. Annie’s was once sold only at specialty retailers like
Whole Foods but is now available at Walmart stores Inc, Kroger Co, and other mass
market grocers. Annie’s pasta section includes mac and cheese, deluxe mac and
cheese, microwavable mac, canned meals, and pasta meals.
Trader Joe’s
Trader Joe’s is a privately held American chain of specialty grocery stores. Trader Joe’s
organic pasta shells are made with all natural ingredients, making them a huge
competitor.
Amy’s
Amy’s Kitchen is a family owned, privately held company that manufactures organic and
nonGMO convenience and frozen foods making them a key rival with the consumer
health trend.
WhiteWave Foods
The WhiteWave Foods company, a consumer packaged food and beverage company,
manufactures, markets, distributes, and sells branded plantbased foods and
beverages, dairy products, and organic salads. This company is the No. 1 U.S dairy
purveyor by sales and It’s new mac and cheese is already sold by natural and
19
mainstream growers, making them a huge competitor with the new health trend. The
company sells its products to grocery stores, mass merchandisers, club stores,
convenience stores, and health food stores.
Indirect:
Campbell Soup Company
The Campbell Soup Company, also known as Campbell’s is an American producer of
canned soups and related products. Campbell’s products are sold in 120 countries
around the world, making them an indirect competitor when it comes to choosing quick
and convenient foods. Campbell makes many simple snacks and beverages that are
very well known. They are also jumping on the health trend with new organic products
and natural ingredients.
Current advertising, sales promotion, public relations, and direct
marketing
Advertising/Public Relations
The reformulated Kraft mac and cheese was meant to be kept a secret from the public
because Kraft was worried that if it made too big a deal about using a different formula,
customers would perceive a change in flavor that wasn’t really there. Now that the
silence is over Kraft has released a major marketing campaign with the theme: “It’s
changed. But it hasn’t.” The campaign includes broadcast and online commercials
featuring former SportsCenter and latenight t.v. host Craig Kilborne, along with the
hashtag #didntnotice.15 Other advertisements include print advertisements in
publications such as People, Entertainment Weekly, and Better Homes & Gardens, as
well as the one day Pandora takeover.
Sales Promotion
Tactics such as giveaways with branded prizes rewarded active online customers. In
order to introduce the ingredient change, Kraft has been giving away tshirts and
oversized macaroni inspired body pillows to customers via social media while using
the hashtag #didntnotice. They also offer 200 dollar cash rebates or free
microwaveanddishwasher safe bowls with a purchase of Kraft Mac & Cheese in order
to get consumers excited about buying their products.
Bariso, Justin. “How Kraft Used Psychology to Make Its Mac and Cheese Go Viral.” Inc.com. Web. 21
15
Mar. 2016.
20
Direct Marketing
Kraft uses its Facebook page to run a promotion with an attached email element which
invites users to try a free sample in exchange for providing their email address. This
provided the company with a list of already brandengaged, product familiar consumers
to market to. Kraft uses social media to drive email acquisition in hopes of receiving new
customers.
21
Message Strategies
Key Messages to Target Audience
1. Kraft macaroni and cheese is transitioning to using all natural ingredients in its recipe
and structure.
2. Kraft sold 80 million units of macaroni and cheese in 2016 without the major target
audience being aware that the product had incorporated natural ingredients into its
recipe.
3. Kraft is choosing to focus on using natural ingredients in its macaroni and cheese
because it is a signature of the brand and it is a product that people have grown up with
and one that people are choosing to introduce to their families.
Key Priority Issues
1. Kraft macaroni and cheese is viewed as a “junk food” brand, one that consumers may
feel is a “guilty treat.” This perception of the brand harms it as consumers, especially
parents with buying power and millennials who want “freefrom” products, will be less
likely to buy the product if it continues to be associated as a junk food or low quality
meal.
2. Low awareness level of the incorporation of natural ingredients into the product, as
well as low awareness of brand shift to the natural and organic sector.
3. Lack of appropriate media coverage of ingredient shift.
4. Decreasing boxed prepared dinners presence in grocery stores across the nation
down by 8%.
22
Buyer Analysis
Our target audience focuses on parents, specifically mothers’ ages 2435 that have the
buying power. This includes middleincome families that are influenced by their children.
Moms want quick, easy and convenient choices for their children so we want to focus
on the families that are on the go. We also want to focus on millennials that want “free
from” products, or food and beverages that are free of items such as artificial flavors,
colors, and chemical preservatives. 16
Gelski, Jeff. "Mac and Cheese Moves to Forefront of 'freefrom' Trend." Food and Beverage News,
16
Trends, Ingredient Technologies and Commodity Markets Analysis. 24 May 2016. Web. 10 Aug. 2016.
23
Marketing goals of this campaign should be measurable, specific, and quantifiable. The
main marketing objectives of this campaign is to increase early 2016 net sales of 8017
million units by 5% by the end of the fourth quarter of 2016 and increase brand sales of
$6.9 billion by 5% by the end of the fourth quarter of 2016 as well.18
● A budget for this campaign is rooted in the objective and task method, a buildup
approach that defines the communication and marketing objectives and
determines the specific strategies and tasks needed to attain them. Client’s
Angels will estimate the costs associated with performance of these strategies
and tasks.
Sales volume
● After introducing the ingredient change, Kraft macaroni and cheese sales
increased to 80 million units according to the company. Client’s Angels
commends this. However, now that we want the ingredient shift to be more easily
recognized, we argue that with our IMC plan, we want to increase sales volume,
reasonably, by 5% over the fourth quarter of 2016, which will see a sales
increase of 4 million.
● Increase brand position in the food and beverage world from number 5 to number
2. 19
In regards to developing a solid marketing strategy for Kraft macaroni and cheese with
an emphasis on raising awareness about the brand’s incorporation of natural
ingredients to the product, as well as establishing a competitive advantage in the natural
and organic food and drink market, key messaging and positioning should be utilized to
take advantage of effective marketing to the target audience.
17
"Sales of Kraft's Mac and Cheese Hit 80M After Ingredient Change." Honolulu, Hawaii News and
Weather. 21 Mar. 2016. Web. 10 Aug. 2016
18
Forbes. Forbes Magazine, n.d. Web. 10 Aug. 2016.
19
"A Platform for Performance." The Kraft Heinz Company. Web. 10 Aug. 2016.
24
Client’s Angels understands that Kraft is a dominating brand in the food and beverage
industry. Our main mission in working with Kraft is complementing and elaborating on
this fact of the brand that people have grown up with and have grown to love and
incorporate into their homes. Our main strategy in working with Kraft is developing a
consistent identity and messaging for the brand that will separate it from the “junk food”
world that millennial consumers often stick the macaroni and cheese product to, and
building the product identity to be able to credibly compete with organic and natural food
brands that also offer macaroni and cheese as their primary product. Implementing this
IMC plan will not only increase the sales of the brand, but it will also allow the brand to
reach new target audiences and consumers and become a dominating and authoritative
force in the organic and natural food market.
Looking into the mission statement of the brand, one can see that it is structured around
the brand’s performance, with nutrition being the last concept mentioned to the
consumer. Client’s Angels’ wants to shift this statement so that health and nutrition are
prioritized in the mission statement and less emphasis is placed on the brand’s desire to
amp itself up, choosing instead to place more interest and focus on the consumer.
Current Mission Statement
The brand’s current mission statement states that it is a “globally trusted producer of
delicious foods, the Kraft Heinz company provides high quality, great taste and nutrition
for all eating occasions whether at home, in restaurants or on the go.” 20
20
http://www.kraftmacandcheese.com/
25
Client’s Angels Mission Statement
The Kraft Heinz company is a beloved and performance driven brand, housing the
favorite products that frequent your cupboards, such as our popular macaroni and
cheese. While we put a high emphasis on our position in the food and beverage
industry, the most important facet of our company is providing healthy and tasty food to
people all around the world and offering experiences rooted in childlike joy in homes,
restaurants, and on the go.
Establishing a vision statement for Kraft that announces its longterm focus on quality
nutrition, natural ingredients, health, and leaning into the organic food sector is
important to Client’s Angels because doing so relates to the IMC strategy that will allow
Kraft and its macaroni and cheese product to be viewed as healthy and preferable to
consumers.
Client’s Angels Vision Statement
Kraft’s vision is to be viewed as a brand that is prefered by consumers because of the
nutritional value, natural ingredients, and transparency that it offers in the products that
it produces. Kraft will continue to be transparent on the use of natural ingredients to the
products that our consumers know and love and will continue to be an established
brand that the consumer can trust to deliver tasty and natural foods.
Awareness Objectives
Through the use of advertising, make 50% of the target audience of consumers on the
product’s social media platforms aware of the new recipe, including the three principal
natural ingredients, by the end of the fourth business quarter 2016.
Liking Objectives
Increase social media engagement (the number of likes, followers, retweets, reblogs,
mentions, etc.) by 10% on the product’s social media platforms, placing emphasis on
Facebook and Twitter. This will be accomplished by the end of the fourth quarter of
2016.
Position Objectives
Increase the brand’s position as number 5 in the food and beverage global industry, to
number 2 by the end of the fourth business quarter of 2016.
26
Marketing Communications Strategies and Tactics
Strategy Develop a public relations campaign for Kraft macaroni and cheese.
Tactics
Create a physical and digital newsletter for internal and external stakeholders of
the brand, informing them of the product shift and giving them updates to the
natural ingredient integration of the Kraft macaroni and cheese recipe.
Develop an effective crisis communication plan in response to negative feedback
online, instores, or in various media, product recalls, product contamination, etc.
The main idea of this crisis communication plan sees a “topdown” approach.
Urgent claims and events affecting the entire brand shall be immediately
addressed by the CEO of the brand. Avoiding a “no comment” pattern and being
as transparent as possible to the public will build effective public relations.
Negative online feedback will always be addressed by the social media
management team to avoid a social media crisis. These communications shall be
friendly, informative, and brief.
Write press releases informing external stakeholders of ingredient shifts.
Establish effective media relations with international, national, and local news
outlets.
Strategy Develop an online and social media marketing campaign for Kraft macaroni
and cheese.
Tactics
Implement effective SEO tied to the product’s primary website page to include
SEO terms such as “natural,” “organic,” “healthy,” and the names of the natural
ingredients used in the product recipe. That way, even those not included in the
target audience will pull up Kraft macaroni and cheese when they search for
other products, or other competing brands, on SERPs.
Integrate a new hashtag theme into all existing social media platforms that
focuses on building awareness of natural ingredient shift.
Engage with consumers through all social media platforms, responding to
feedback and criticism professionally but promptly.
Increase website traffic by adding links of the principle website into social media
content posts. Users will be inclined to click on the links and be directed to the
main website to learn more about the product.
Recommending consumers post usergenerated content in the form of creative
videos discussing why they enjoy the natural ingredients Kraft is using in its
macaroni and cheese. Each video should show the user enjoying the product,
being appropriate, and using the following campaign hashtag: #noticethenatural
27
Incorporate television ads of the campaign onto digital and social media
platforms.
Create a Youtube series on the product’s Youtube channel that features the
making of the product with the natural ingredients listed and showcase unique
ways people can incorporate Kraft mac and cheese into healthier meals and
lifestyles.
Strategy Develop an identity for Kraft macaroni and cheese that positions it as a
product that uses natural and organic ingredients and is a dominant force in that market
against its competitors.
Tactics
Reestablishing packaging to incorporate “natural” colors such as cardboard brown
and green with minimal use of traditional blue, red, and white colors. This will reflect the
brand’s stance of using natural products while using the former brand colors rather
minimally will remind consumers that the product is still the same Kraft macaroni and
cheese that they know and love, just using wholesome and natural ingredients.
Create television and internet advertisements that raise awareness about the
ingredient shift and the natural position that the brand is taking, while also implementing
competitive advertising and mentioning competing brands that operate in the organic
macaroni and cheese sector.
Create an event hosted at grocery stores across the nation entitled “Notice the Natural”
(#noticethenatural), that involves raising awareness of the new ingredients used in Kraft
macaroni and cheese to consumers and having them blind taste the new product that
contains natural ingredients, with the older product and an organic macaroni and
cheese competing product. After the taste test, should a preference be selected, the
consumer will learn that the macaroni they tried was the newest version of Kraft
macaroni and cheese, reinforcing that while the change did not change the structure of
the product, they are having a product that is better for them.
Seek out testimonials from nutritionists, cow farmers, farmers who grow the wheat for
the pasta, and developments where natural flavors are grown, and use these
testimonials in advertisements across traditional and digital media. These testimonial
advertisements will be as transparent as possible to consumers, informing them of how
the macaroni and cheese is made with the help from credible agricultural sources.
Strategy Develop a sales promotion campaign for Kraft macaroni and cheese and
position the brand from number 5 in the global food and beverage industry to number 2.
Tactics
28
Encourage retailers and grocery chains across the nation to commit to carrying
redesigned boxes of the product featuring natural ingredients by brandishing early 2016
sales of the reformed product.
Encourage promotions in stores that tie in with seasonal events. Since this campaign
seeks to run near the end of the fourth business quarter of 2016, the brand could utilize
promotions of the product that tie into themes around and capitalize off of football,
Thanksgiving, Christmas, and winter break for students who will all need a healthy,
nourishing bowl of macaroni and cheese during the colder months and those months
where celebration and food meet.
Send out coupons to target audience for them to buy the innovated product at a lower
price to establish brand and product loyalty.
29
Copy Platform/Creative Brief
Ad subject: Kraft macaroni and cheese
Key fact: Kraft macaroni and cheese is viewed as a “junk” food and the recent
ingredient shift to address this has some consumers that the product isn’t the same.
Ad problem: Many consumers are not aware of the natural ingredients used in Kraft
macaroni and cheese or the direction that the brand is moving towards in the natural
and organic food sector.
Product characteristics:
● Uses natural ingredients
● No artificial colors
● Same flavor, but healthier
● Can be enjoyed with family or on the go
● Rooted in childhood tradition and healthier to eat than before.
Advertising objectives:Through the use of advertising, make 50% of the target
audience of consumers on the product’s social media platforms aware of the new
recipe, including the three principal natural ingredients, by the end of the fourth
business quarter 2016.
Target market: Target market includes parents, specifically mothers with buying power
who are interested in knowing what ingredients are in the food that they are feeding to
their children. They are females, 2435. Also included in this audience are “freefrom”
consumers, those who want products free from artificial ingredients and colors.
Competition: Organic macaroni and cheese brands such as Annie’s, Amy’s, Trader
Joe’s branded macaroni and cheese, and White Wave Foods.
30
1. Why are we advertising? Primary goal in advertising is to drive the new Kraft
macaroni and cheese recipe as the new direction for the brand and position the
product as a credible competitor in the organic and health food industry.
2. What’s the consumer problem that we’re trying to address? Kraft macaroni and
cheese isn’t healthy to eat, even with its alleged natural ingredients. Kraft doesn’t
taste the same as it once did. Comfort food isn’t good for you, therefore Kraft isn’t
good for you.
3. Who are we talking to? Our target audience includes parents, specifically
mothers with buying power who are interested in knowing what ingredients are in
the food that they are feeding to their children. They are females, 2435. Also
included in this audience are “freefrom” consumers, those who want products
free from artificial ingredients and colors. These consumers are rooted in the
millennial generation, they grew up with Kraft products, but now they are placing
heavy emphasis on their health and lifestyle choices. These consumers use
interactive and digital media to engage with brands online so their feedback is
crucial to the evaluation of the campaign.
4. Consumer Insights? Thoughts on the product are currently mixed. Reviews from
Amazon show that critical comments are geared at the fact that the recipe of the
product has changed and that it doesn’t taste the same. Other critical comments
regard the nutritional value of the product. Positive comments on the product
involve the flavor and texture of the product and that it has been a family favorite
for years.
5. What does our consumer think now? Many consumers think that Kraft macaroni
and cheese is an unhealthy product, while others want the product to stay exactly
as it is because the former structure of the product was something that they had
grown familiar with since childhood.
6. What do we want the consumer to think/feel/do? We want consumers to think
the following: “I like the new Kraft recipe, I couldn’t tell the difference between
this one and the older one. The new ingredients don’t make me feel as guilty
eating mac and cheese, the meal I loved eating when I was a kid. I’m definitely
going to have another bowl.” We want them to eat Kraft and not feel guilty about
it because the recipe is natural and therefore buy more.
7. What should we tell them?: Kraft Mac and Cheese wants you to
#noticethenatural, both in its new natural and organic ingredients and in its
guiltfree taste that will let you go back to a time when being a kid was a lot less
about reading over boxes and food labels and more about enjoying “cheesey
goodness.”
8. Why should they believe us? Kraft has sold over 80 million units of the product
featuring the new natural ingredients. Aside from leave a huge impression in the
31
food and beverage sector with its natural mac and cheese, the mass number of
units sold shows that consumers must have liked it enough, and kept liking it, to
commit to purchase.
9. Brand Positioning statement “Kraft macaroni and cheese is using all natural
ingredients in its recipe because we know that giving natural ingredients and a
healthy option to your family, your friends, and your “on the go” is just as
important as having a meal that is tasty, popular, and that has been on your shelf
since you were a kid who was “on the go.”
10. Tone and Manner Credible, but not too serious. Relaxed and willing to
incorporate a bit of warmth and humor. Genuine, authoritative, and
knowledgeable.
11. Media Options The campaign will take advantage of implementing traditional
broadcast advertising in television ads, digital ads on the product’s main website,
social media content and posts, and direct mail in the form of promotions and
coupons for the product.
12. Mandatories New campaign hashtag, new campaign colors of “organic” brown
and green.
32
Print Ads
This ad reestablishes the blue and yellow color used by Kraft into more “natural” colors such as
the dark green used in the background. Green is usually used to remind consumers that the
product has natural ingredients and that it is healthy, but at the same time we use the Kraft logo
to remind consumers that the product is still the same Kraft macaroni and cheese. The tagline
‘A treat can be healthy too!’ is to show consumers that it's a delicious treat but that doesn't mean
it is considered junk food. The hashtag #noticethenatural is used to let customers know that
ingredients have changed and the mac and cheese dinners now uses natural ingredients.
Finally, the image chosen is to show the deliciousness and creaminess of the mac and cheese
provided by Kraft.
33
With this second print ad we wanted to raise awareness about the ingredient shift and the
natural position that the brand is now taking. This can be seen because of the green field
background with farm cows. This ad is comical, relevant and true to the mac and cheese brand.
The cows and green field was chosen to give the feel of a more natural product being provided
by only the best and natural ingredients. The image of the mac and cheese on a fork works
because it is showing the consumer that the mac and cheese ingredients come from farms and
cows. We decided to use the same tagline and hashtag as well as the logo for the same
reasons discussed in the first print ad.
34
TV Script
Date: August 4, 2016
Company: Kraft Heinz
TRT: 30 seconds
Title: Kraft Macaroni and Cheese, “This Is.”
VIDEO AUDIO
V.O of a young woman, preferably in
her 30’s. Her tone is gentle, relaxed,
and credible.
A pan overview of green, verdant acres This is the farm where the Kraft
of land, fresh soil and sunlight beaming macaroni and cheese you know and
all around. love grows from.
CUT TO a field of golden wheat, blowing This is the wheat, growing taller every
in the wind, sunkissed. day, used to make the macaroni in Kraft
mac and cheese.
CUT TO two female cows, white as
snow, being milked by older farmhands
in their 50’s. The short clip places These are the cows that produce the
emphasis on the two cows, staring off natural cheeses used in Kraft macaroni
directly into the camera, while the and cheese.
farmhands are shielded by shadow or
huge straw or rancher hats.
CUT TO a pair of tanned hands, digging These are the natural spices, turmeric,
into a huge bag of spices, turmeric, annatto, and paprika, all used to
annatto, and paprika. As the hands mill naturally color Kraft macaroni and
through the spices, the camera places cheese.
emphasis on their movement and colors.
CUT to three factory workers, all in their
later ages, preferably 50’s, wearing baby This Bob, JoAnne, and Mary, who
bluish uniforms, headgear, and gloves, have a fun time working to put all of
talking to each other, directly looking at these natural ingredients into one
35
one another, laughing as they work, as if magical box.
they were just done hearing a joke.
TIGHT ON of the redesigned Kraft
macaroni and cheese box, its structure is
still the same, but the color of the box is
a cardboard brown hue, with minimal TIGHT ON shot of newly designed
elements of green. The logo of the brand Kraft macaroni and cheese box.
remains the same, as does the type, with
colors of red, white, and blue.
CUT TO a family eating dinner in their
kitchen, passing Kraft macaroni and
cheese to one another, laughing, talking
about their day.
This is enjoyment of each other’s
CUT TO a young male, 1824, wearing company.
glasses, studying in his college dorm,
eating a bowl of Kraft macaroni and
cheese, while gazing at his computer
screen at a desk, doing homework. This is where things get a little bit
easier.
CUT TO a mother and daughter in a
grocery store in an aisle where Kraft
macaroni and cheese is positioned. The
daughter, aged 37, points to something
high in the aisle that she can’t reach. The
mother grabs a box of Kraft macaroni This is where it all begins.
and cheese and glances over it but
appears to be impressed with the natural
ingredients she sees on the Nutrition
Facts label. She passes the redesigned
box to her daughter’s hands, with a
TIGHT ON the box and Kraft logo. The
daughter then smiles and places it in her
toy shopping cart.
PULL BACK to see the mother and
36
daughter walking out of the aisle. The
Kraft logo appears on the screen with the
type head with the hashtag
#NOTICETHENATURAL
Kraft macaroni and cheese. Notice the
natural.
Sample television advertisement script for the Kraft macaroni and cheese
#noticethenatural campaign.
37
Commercial Storyboard
38
39
40
41
Public Relations Press Release
FOR IMMEDIATE RELEASE
Media Contacts:
Client’s Angels
Loyola University Chicago
clientsangels@luc.edu
Kraft Macaroni and Cheese To Become Natural and Organic Food Brand
Food Brand Giant To Head Into New Direction; Offers Full Transparency Among
Consumers
CHICAGO, August 4, 2016— Food brand giant Kraft Macaroni and Cheese is planning
to renovate its brand by entering into a new market: the natural and organic food
industry. Kraft announced that it would be pushing into the market near the end of 2016,
with the help of advertising agency, Client’s Angels.
“We are excited to branch into a new market, while also serving our principle
consumers,” said Kraft Senior Vice President of Marketing, Chris Kempczinki. “Kraft
understands that our consumers want to enjoy the Kraft macaroni and cheese that
they’ve known and love, but they also want to know where their food is coming from,
what is in it, and how it will better serve their lifestyles. We definitely think this is the
right decision.”
The new push was initiated in late 2015, when Kraft introduced natural ingredients to
replace its artificial coloring, all the while without letting consumers overtly know as to
not change perception of the brand. Currently, Kraft tapped Chicago based advertising
agency, Client’s Angels, in an effort to spread the news to the majority of its consumers
through advertisements and promotional efforts and let them know that the ingredient
change is only the beginning of Kraft’s plan to launch into the organic food sector
through an integrated marketing campaign entitled #noticethenatural.
Kraft hopes to acquire repeated success through the implementation of new ads that
will raise consumers’ awareness of the brand’s decision to lean on natural ingredients in
its macaroni and cheese. In early 2016, 80 million units of the natural Kraft macaroni
42
and cheese were sold. Through the help of Client’s Angels, Kraft hopes to sell 5% more
units of the product, which includes a redesigned look for the box and accompanying
digital and social media advertisements.
“Kraft believes that Client’s Angels will do an exceptional job in launching us into this
new direction and market,” said Kempczinki. “We believe that not only will consumers
love our macaroni and cheese, as they always have, but we’ll leave our signature mark
on the organic food market.”
To learn more about Kraft macaroni and cheese, please visit:
http://www.kraftmacandcheese.com/
About Kraft Foods Group
Kraft Foods Group is one of North America's largest consumer packaged food and
beverage companies, with annual revenues of more than $18 billion. The company's
iconic brands include Kraft, Capri Sun, JELLO, KoolAid, Lunchables, Maxwell House,
Oscar Mayer, Philadelphia, Planters and Velveeta. Kraft's 22,000 employees in the
U.S. and Canada have a passion for making the foods and beverages people love.
Kraft is a member of the Standard & Poor's 500 and the NASDAQ100 indices. For
more information about Kraft, visit www.kraftfoodsgroup.com and
www.facebook.com/kraft.
Sample press release for Kraft macaroni and cheese.
43
Social Media Samples
Sample Facebook post for Kraft macaroni and cheese #noticethenatural campaign. This
post was generated from prankmenot.com
Sample Facebook post for Kraft macaroni and cheese #noticethenatural campaign. This
post was generated from prankmenot.com
44
Sample Twitter post for Kraft macaroni and cheese #noticethenatural campaign. This
post was generated from prankmenot.com
45
Redesigned Box
Rough and primary visual draft for redesigned box. Notice the colors are predominately
an “organic” brown and green, with an emphasis on the natural spices and ingredients
found in the renovated product. This can be subbed for any image that places emphasis
on natural ingredients.
46
IMC Strategy
Through the use of television advertisements that will be broadcast on network and
cable television stations, social media updates and content creation, direct mail, digital
monitoring on the product’s website, the creation of stylized print ads, and placing an
emphasis on creating unique promotions, retail experiences, and coupons to push
sales, this campaign will raise awareness of Kraft’s mission to guide the brand into the
organic and natural food market and create a unified, consistent approach in all media
forms to share with consumers that the shift is credible, transparent, and constructed as
a response to what they want out of Kraft macaroni and cheese.
Media Mix Recommendations and Rationale
Client’s Angels understands that due to the timeframe of the campaign operating
throughout the fourth business quarter of 2016, the types of media and media vehicles
being used for the campaign need to be able to reach Kraft’s targeted audience with
minimal waste coverage, as well as through a costeffective and responsible way.
Scheduling Pattern
Because the brand and product are already a dominant force in the food and beverage
industry, we argue that the pulsing method should be utilized. We don’t want the target
audience to get worn out from the messaging that we create, but we do want to raise
awareness of the direction that the brand is shifting towards. More so, because the
product is rooted in the food and beverage industry, Client’s Angels has determined that
there may be more opportune times for the promotional scheduling of the product to be
amped up. Since the campaign will be operating during the fourth business quarter of
2016, advertising will be consistent throughout the four months, but will be heavily
disseminated throughout November and December, when holidays such as
47
Thanksgiving and Christmas see consumers traveling to grocery stores more often to
buy food for family meals. Macaroni and cheese is a staple food for these holidays and
as such, the product should be promoted frequently during these holiday times.
Client’s Angels understands that Kraft has been serving its consumers for over 75
years. The brand is prominent and established in the food and beverage industry.
Because of this, Client’s Angels recommends that Kraft pay more attention to the
frequency of their messaging as opposed to the reach of their message. While it is
important to reach as many people as possible within the target audience, the brand is
not a new brand so it does not need a very high level of reach, since most consumers
know of Kraft macaroni and cheese.
Frequency objectives
Client’s Angels wants the target audience to be aware of the ingredient shift in the
macaroni and cheese product that they are consuming. If they are aware of this shift,
Kraft stands a better chance of being a credible, strong competing force in the organic
and natural food market. In order for consumers to be aware of the shift, the message of
the shift needs to be viewed multiple times over the timeframe of the campaign.
Our frequency objective is to produce one principle television advertisement that is
shown throughout the fourth business quarter of 2016, amped up during holidays,
reaching 30% of the intended target audience through 11 exposures through regular
circulation on network and cable television channels. We know that our target audience
interacts with television, but we also know that many millennials are using their mobile
and internet devices to interact with brands. Client’s Angels also intends to raise
awareness through digital and online mediums, which is why a lower percentage needs
to be reached via television broadcast channels.
For the print advertisements that Client’s Angels has crafted, we understand that
placing these ads in newspapers, magazines, and other publications will result in high
coverage of the message that we have crafted, more so these print ads can be
accompanied by coupons for the product and wearout will be avoided because the
consumer will be in control of the amount of exposure as a reader. To mitigate issues of
clutter and short life of messages in prints, we’ve crafted the objective to reach at least
20% of our target audience through print ads through the fourth business quarter of
2016. Committing to a frequency of having a print ad in a publication every two months
over the four month period, Kraft will find success in having the awareness of the
ingredient shift raised. Selective partnerships with culinary magazines, as well as
popular publications, will ensure that we reach the correct target audience, while
48
strategic positioning of print ads in any publications before they are ran will solve the
constant issue of clutter.
In regards to the digital and social media channels we will use to raise awareness of the
product and brand shift, our objective is to reach 50% of the target audience through
these platforms over the fourth business quarter of 2016 through creative and
streamlined digital content and advertisements, with similar spikes occurring during the
holiday season as well.
These objectives can be evaluated to measure their effectiveness through two ways:
online surveys that provide questions related to awareness on the product’s social
media platforms, and direct polls available to consumers via representatives in grocery
stores across the nation during the end of the fourth quarter of 2016. Incentives, in the
form of discounted rates or free samples on the product, will be given to consumers in
grocery stores for taking the time to complete a brief poll regarding if they are more
aware of the product and brand shift via the advertisements on television
Costperthousand (CPM)
Because we intend to use digital and social media to advertise and promote the new
healthy and natural Kraft mac and cheese, costperthousand proves to be needed in
this campaign. The digital/social media aspect of our budget is calculated through CPM.
For this campaign we are using Facebook, Twitter, Youtube and Instagram. Our goal is
to get 4,000 impressions (when an ad is fetched from its source) per day for each social
media medium. The following are our calculations:
Facebook: the average CPM for the food and beverage industry is $0.66, which means that we
will pay $0.66 for every 1,000 impressions of the ad. We want 4,000 impressions per day, so we
calculate: 4 X $0.66 = $2.64 per day X 30 = $79.2 per month X 4 = $316.80 for the four months
of the campaign.
Twitter: the average CPM for a promoted tweet is $6.32, so we calculate: 4 X $6.32 = $25.28
per day X 30 = $758.4 per month X 4 = $3,033.6 for the four months of the campaign.
Youtube: the average CPM for placing a video ad on youtube is $7.60, so we calculate: 4 X
$7.60 = $30.4 per day X 30 = $912 per month X 4 = $3,648 for the four months of the campaign.
Instagram: the average CPM for ads on instagram is $6.58, so we calculate: 4 X $6.58 =
$26.32 per day X 30 = $789.6 per month X 4 = $3,158.4 for the four months of the campaign.
49
This flowchart displays all of the recommended media activities that Clients Angels
suggests to Kraft Mac and Cheese in the fourth business quarter of 2016.
50
The table above shows the total cost for each medium used in the IMC campaign for
Kraft’s mac and cheese dinner. Each cost was calculated with real numbers (explained
in the justification column), which led to the total budget for the campaign being
$665,632.
51
Advertising Recommendations
Objective: Our principle objective for the advertising sector of the IMC plan is to raise
awareness of the brand’s natural ingredient shift by 50% and uphold the brand’s image
as popular but healthy.
Audience: The audience affected by this objective includes consumers of the product
and millennials within the target group.
Timing: Divided based on the type of advertising. Broadcast ads will run from
September through November, print ads in magazines from October to November, and
print ads in newspapers divided to run in September and December.
Tools/Media: television, print in newspapers, and magazines.
Budget: $472,475
Rationale: National commercial that will run in two TV stations = Food network
(chopped: 9pm) $84,475 and NBC (Sunday Night Football: 8pm) $350,000. Print ad in
national magazines on a full page (7.45w x 9.3h) in color, running monthly for two
months is $20,000 and a print ad that run in weekly news publications for two months,
covering three columns in width and is five inches long (15 column inches) in color is
$18,000.
Digital/Social Media Recommendations
Objective: Engage with 90% of the product’s Facebook and Twitter followers while also
increasing social media followings by 10%.
Raise awareness of the brand’s ingredient shift and increase direct traffic to the
principle website by 10%.
Increase social media engagements (follows, “likes,” reblogs, etc.) by 10%.
Audience: Followers of the brand on its social media platforms and the ideal target
audience that has not engaged with the brand currently on its social media.
Timing: Ongoing over the fourth quarter of 2016.
52
Tools/Media: The product’s Facebook, Twitter, Youtube, and Instagram platforms.
Budget: $10,157
Rationale: Calculated by using Costperthousand (pay a certain amount for every 1,000
impressions of the ad) and our goal is to get 4,000 impressions per day for each social media
medium.
Public Relations Recommendations
Objective: The primary objective for the public relations sector of this IMC plan is to
inform stakeholders, in depth, of the natural ingredients found in the product and the
reasoning behind the ingredient shift. Doing so will occur through established media
relations, as information will be disseminated through these channels. We intend to see
a 15% rise in discussions in the media (press releases, articles, news coverage)
regarding the ingredient shift over the the course of the fourth quarter of 2016.
Audience: Stakeholders who are already invested in the brand and shareholders who
are invested in the product.
Timing: Early in the campaign, preferably from September through the end of October.
The ideal timing of this objective coincides with the implementation and execution of the
advertising objectives.
Tools/Media: Coverage through major and international news media, local and city
outlets, articles in national newspapers, articles in business and economic publications.
Budget: $20,000
Rationale: We are going to hire a PR agency to take care of the coverage and public releases of
the campaign. It costs $10,000/month to hire a PR agency so we calculated $10,000 x 2
months.
Sales Promotion Recommendations
Objective: By using the marketing mix tools (place, promotion, product, and price), an
objective will be established to increase sales by 5% by the end of the fourth quarter of
2016.
Audience: Millennials, parents, “freefrom” consumers, and others that fall within the
target audience.
Timing: The objective will be implemented and executed over the end of the fourth
business quarter of 2016. Coupons should be distributed from October to December,
direct mail will be implemented from November to December, and sweepstakes will
occur over October.
Tools: coupons, direct mail, and sweepstakes.
Budget: $33,000
Rationale: The coupons will cost $12,000 calculated for customers to save $0.50 from original
kraft mac and cheese box price, the direct mail costs $15,000 because each mail costs $1.50
53
and we want to send it to 10,000 households. Lastly, the sweepstakes will be $6,000 and will be
used for giveaways and contests during one month of the campaign.
Direct Marketing Recommendations
Objective: This objective not only seeks to maintain a direct connection with the target
audience and raising brand advocates for the new ingredient shift by 15%, but also
seeks to gain an increase in direct website visits by 10% over the fourth quarter of 2016.
Audience: The target audience determined by the campaign.
Timing: Ongoing, but specifically measured during the remainder of 2016.
Tools: Direct mail and physical and digital outreach to consumers in stores and online.
Budget: $130,000
Rationale: The physical outreach to consumers will be in stores specifically in grocery carts
advertising, which costs $1,000 per month for one store. We calculated 30 stores around the
Country for 4 months. The digital outreach is $10,000 to hire a professional for website redesign
and development.
54
The campaign flowchart lists all of the activities and events that will occur for the four
month period of the campaign. On the left are the major activities/events and on the
right there are specifics of each, such as TV stations, magazine and newspaper names,
etc.
55
Recap of Campaign Objectives
1. Increase early 2016 sales of 80 million units by 5% by the end of the fourth
quarter of 2016.
2. Increase brand sales from 6.9 billion by 5% by the end of the fourth quarter of
2016.
3. Make 50% of the target audience of consumers on the product’s social media
platforms aware of the new recipe, including the three principal natural
ingredients, by the end of 2016.
4. Increase the position of the brand in the global food and beverage industry from
5 to 2.
5. Increase the number of likes and followers by 10% on the product’s social media
platforms, placing emphasis on Facebook and Twitter. This will be accomplished
by the end of the fourth quarter of 2016.
6. Increase the percentage of direct website traffic by 10% by the end of the fourth
quarter of 2016.
7. Increase monthly media coverage of new ingredient recipe and brand direction
for Kraft macaroni and cheese by 15%.
8. Engage with 90% of the product’s social media followers on Facebook, Twitter,
Instagram, and Youtube.
Quantifiable Evaluation
In this IMC campaign, measurable objectives were important to Client’s Angels, as we
knew that our measurable objectives would allow Kraft to evaluate the work that we’ve
accomplished for their macaroni and cheese product. The first and second objectives of
this campaign are easy to evaluate, as the number of units sold of the new product can
56
be monitored and the sales of the Kraft brand can be tracked, specifically the amount of
money that is generated from the selling of the macaroni and cheese product, which
numbers can be pulled from grocery stores, restaurants, convenience stores, and
monthly reports. Data of the number of units sold and the amount of money generated
from sales should be reported every three to six months, preferably all data in relation to
the number of sales should be collected before the end of the fourth quarter of 2016 to
show results. Once data is generated, Client’s Angels suggest that Kraft use their sales
metrics to determine their position in the global food and beverage industry to determine
if they have risen from their spot as number 5 to number 2 by the end of 2016.
Awareness Level Evaluation
The awareness level objectives of this campaign can be evaluated through survey polls.
To reduce the cost of issuing surveys, Client’s Angels recommends that the brand issue
these surveys on their social media platforms for free, primarily through polls on
Facebook and Twitter. Through this medium, the number of Facebook and Twitter
followers can be established and through the use of these polls, their knowledge of the
product’s ingredients can be tested to determine if consumers are aware of the natural
ingredients being used in the product. To measure those consumers who do not
frequently use social media, Client’s Angels suggests that direct mail surveys be
implemented and used to supplement social media polls. Through this medium,
consumers will be sent surveys to their homes or places of work, as well as through
email, and will be able to answer questions of awareness at their discretion. Not only is
this another affordable method for the brand to use, but Client’s Angels, in an attempt to
mitigate low response rates and follow up times, suggests that Kraft utilize concise
questions, simple instructions, reduce perceived costs of return mail, use branded
stationery to increase credibility and trust, as well as increasing the reward for filling out
the response (be it in the form of an additional coupon for the product or interesting
questions).
Media Coverage Evaluation
Through the use of web analytics tools such as Google Alerts, Kraft will be able to track
extensive coverage in the form of articles, blog entries, and social media posts
regarding the product shift into the organic food sector.
In terms of print media and articles in newspapers and journals, Kraft will be able to
evaluate increased media coverage by clipping articles from online, and in national and
international newspapers. Tracking and clipping will also be utilized through video clips
from national and international media coverage on news programs and talk shows.
57
Online Evaluation
Through the use of Google Analytics, Kraft will be able to see how much traffic and
interaction is being directed towards the product’s main website. Also, the Google
Analytics tool will be able to determine the number of users being referred to the
website through the product’s social media platforms. Data on direct website traffic
should be displayed right before the end of the fourth business quarter of 2016 to
measure online objectives.
In terms of tracking the increase of “likes” and followers of the brand product and
engagement with consumers on social media platforms, this can be done daily by the
Kraft team. Client’s Angels recommends monitoring the number of preferences that the
brand receives every day on its social media platforms. Be it in the form of likes on
Facebook, mentions and reblogs on Twitter, likes on Instagram, and shares from
Youtube, these should be consistently monitored and compared near the end of the
fourth quarter of 2016. Content should be updated consistently on the product’s social
media pages, either in the form of digital content in the form of advertisements on
Facebook, recipe and informational advertisements on Youtube, or photos of the
product on Instagram.
58
The budget for this IMC plan was determined by setting objectives. After our objectives
were set we looked at what tasks were required in order to meet our overall objectives
and with those tasks in mind we estimated what it would cost to complete each task.
The budget includes all expenses in regards to the following media: television, print ads
(newspapers and magazines), Digital/social media (Facebook, Twitter, Youtube,
Instagram), Public Relations, Sales Promotion (coupons, direct mail, sweepstakes) and
Direct Marketing (physical and digital outreach).
Kraft’s Mac and Cheese Dinner 2016 marketing communications budget is $665,632. A
detailed budget breakdown can be found in page 51 of this report.
59
Kraft macaroni and cheese has been a staple in the American pantry for over 75 years.
Kraft’s mission in delivering quality ingredients to its consumers resulted in, as Kraft
would claim, “the world’s largest blind taste test” in early 2016 when the brand quietly
pushed macaroni and cheese boxes with new, natural ingredients onto grocery shelves
across the nation. Kraft’s reasoning behind the hushed push intended to not change
perceptions of taste and preference on the product. However, Kraft’s goal of making a
natural product for an audience that demands natural and satisfying food is in vain if
consumers are not aware of the positive changes that Kraft has made to its popular
product, as well as the direction the brand is shifting towards as a whole.
Lack of appropriate media coverage on the ingredient shift, negative brand image of the
product as a “junk food,” lack of awareness of the natural ingredients used in the
product by consumers, and decreasing sales of boxed prepared foods that could
potentially affect the brand in the future are all pertinent issues that the brand faces.
This IMC provides Kraft with the most effective objectives, strategies, and tactics to best
address these problems.
Guided by a set budget of $665,632, the main objectives, strategies, and supporting
tactics of this campaign are ensured to offer success. The marketing goals of this
campaign seek to increase sales from 80 million units by 5%, raise overall brand sales
of $6.9 billion by 5%, and see that the position of the brand in the food and beverage
world rises from 5 to 2. Communication objectives are established to support these
marketing goals include helping consumers become aware of the brand and product
shift to using natural ingredients by 50% and seeing that the product’s social media
platforms increase the number of followers, reblogs, retweets, and “likes” by 10%, all
over the course of the fourth business quarter of 2016.
60
With the strategies in mind to create a transparent and strong public relations campaign,
digital and social media initiatives, credible yet creative advertising, and a sales
promotion plan that will help increase sales and build awareness amongst consumers,
Client’s Angels believes that this is the most effective IMC campaign for Kraft.
Implementing this plan will allow Kraft to continue to be a dominant brand in the food
and beverage market, with a higher position than it once had. More so, the plan will
allow Kraft to focus on its top priority: its consumers. By engaging with consumers
online, giving consumers the natural ingredients that they want to see in the foods that
they eat, and making them aware of their moves as a brand, Kraft will be able to be
seen as a credible and transparent brand in the food and beverage industry and will be
able to strongly compete with competitors in the natural and organic market that it can
possibly dominate, all through the use of one of its most key, popular products.
Client’s Angels openly welcomes Kraft as a partner on their journey into launching into a
prospective market and continuing to give their consumers what they want the most: a
healthy and tasty meal.
61
Competitor Advertisements
A side by side print advertisement comparison regarding Kraft’s older advertisements
focusing on its ingredient shift and its top competitor in the natural and organic food
market, Annie’s Mac & Cheese. Notice Annie’s emphasis on “real” ingredients and how
it distinguishes itself as a brand and product from Kraft’s earlier advertisements.
62
Sample Survey for Target Audience
This sample survey can be used, modified, or developed for Kraft’s evaluation of how
aware its consumers are of its ingredient and brand shift at the conclusion of this
campaign. This survey can be distributed online, through social media, or directly to
consumers.
63
"A Platform for Performance." The Kraft Heinz Company. Web. 10 Aug. 2016.
"Annual Reports." The Kraft Heinz Company. Web. 10 Aug. 2016.
Baertlein, Lisa. "Kraft Challenged by Healthier Macaroni and Cheese Brands."Reuters.
Thomson Reuters, 30 Mar. 2014. Web. 05 Aug. 2016.
Bariso, Justin. “How Kraft Used Psychology to Make Its Mac and Cheese Go Viral.”
Inc.com. Web. 21 Mar. 2016.
Bazilian, Emma. "CPG, Food: Kraft Macaroni & Cheese SVP Chris Kempczinski."
AdWeek. Web. 27 Oct. 2011.
Forbes. Forbes Magazine, n.d. Web. 10 Aug. 2016.
Foster, Kim. "Why You Should Never Make Box Macaroni & Cheese Again: A Manifesto
Imperfect Parent." Imperfect Parent. 2008. Web. 10 Aug. 2016.
"Frozen Foods Consultative Group." Nature 162.4118 (1948): 522. Kraft Foods Group.
Cagny Conference, 18 Feb. 2014. Web. 27 July 2016.
Gelski, Jeff. "Mac and Cheese Moves to Forefront of 'freefrom' Trend." Food and
Beverage News, Trends, Ingredient Technologies and Commodity Markets Analysis. 24
May 2016. Web. 10 Aug. 2016.
http://image.slidesharecdn.com/kraftanalysis141213215920conversiongate01/95/kraft
analysis13638.jpg?cb=1418508053
64
https://tippie.uiowa.edu/krause/spring2015/krft_sp15.pdf
Kim, Susanna. "Sales of Kraft's Mac and Cheese Hit 80M After Ingredient Change,
Customers 'Didn't Notice' Company Says." ABC News. ABC News Network, 21 Mar.
2016. Web. 10 Aug. 2016.
http://www.kraftmacandcheese.com/
"Kraft Macaroni & Cheese Consumer Insights and Demographics | InfoScout.co."
Infoscout.co. N.p., n.d. Web. 27 July 2016.
"Kraft Macaroni & Cheese: A History." Tribunedigitalchicagotribune. N.p., 14 Aug.
2015. Web. 27 July 2016.
Magwood, Johnny D., Dr. "Kraft Foods Inc. – Marketing and Managing the Customer
Relationship ." Customer Think. N.p., 27 June 2015. Web. 05 Aug. 2016.
"Market Position and Strategy for KRAFT FOODS INC." UKEssays. N.p., 23 Mar. 2015.
Web. 26 July 2016.
"Organic Market Analysis." Home. Web. 10 Aug. 2016.
"Sales of Kraft's Mac and Cheese Hit 80M After Ingredient Change." Honolulu, Hawaii
News and Weather. 21 Mar. 2016. Web. 10 Aug. 2016.
Tascarella, Patty. "Kraft Heinz Hoping New Mac & Cheese Recipe Means More Sales,
Market Share." Widgets RSS. 08 Apr. 2016. Web. 10 Aug. 2016.
Tuttle, Brad. "5 Amazing Facts About Kraft Macaroni and Cheese and Heinz Ketchup."
Time. Time, 26 Mar. 2015. Web. 26 July 2016.
Wohl, Jessica. "Kraft Heinz Plans To Boost Working Media by $50 Million." Advertising
Age CMO Strategy RSS. N.p., 26 Feb. 2016. Web. 10 Aug. 2016.
65