Marketing Plan By: Mr.

Sniffles

Summary of Data Provided

Pik-Nik is an all-American snack that has been in the market for over 70 years now. It is the No. 1 Potato stick brand in the USA. It is the No. 1 worldwide exporter of Potato sticks. Pik-Niks plant facilities are in San Jose, California

United States Philippines Korea Taiwan Thailand Malaysia Singapore India China

Canada Iceland Latvia Aruba Curacao Bonaire Costa Rica Kuwait Saudi Arabia

Snack Foods Category Industry Potato based, Corn based, Flour based Sub-category: All Natural, Extruded , Processed Pik-Nik all natural potato snacks, made using only fresh potatoes, pure vegetable oil and other seasonings. 100% no preservatives

Young & trendy 18 to 25 years old Gregarious Fun loving Adventurous Independent & dynamic Eating on the move Snacking for fun

Goal: For Pik-Nik to be the No. 1 in the Imported Snack market in the Philippines. Problem: How can we make Pik-Nik the top of mind choice for consumers in its target market without changing its product offering?
Low control over product since internationally sourced

Pik-Nik has almost no online presence, and no online assets, and is obviously missing out on this opportunity. A great number of the individuals that PikNik is targeting can easily be reached through this untapped medium. Pik-Nik is the only one who can position itself as a healthy snack

The competition of Pik-Nik all have an online presence, with Frito Lay having the most online presence and assets, and Oishi having the least. Except for Oishi, the imported snacks market do not have a locally targeted online campaign. The competition for flavor innovation is fierce

Since Pik-Nik has been getting double digit growth rates for its sales, consumers are switching to Pik-Nik as compared to other snacks. (Global Growth rate 5%) Almost all sales made for the snack food industry are still in supermarkets, convenience stores, and other independent retailers.

Pik-Nik Pringles Frito-Lay Oishi

Pik-Nik
Has an International Website
No engagement Not updated

No local Website No Official Facebook Page Has an inactive fan-generated Facebook Page (3,345 fans)

Pik-Nik
No Official International or Local Twitter Page No Youtube Channel No Forums talking about Pik-Nik Low SEO score in Google Search
Keywords: Piknik; Pik-Nik

Good local feedback thru social media (Facebook & Twitter)

Pringles

Has an active international Website and Microsite Good promotional activities User-Friendly Site Has 17,600,627 (As of Feb. 8, 2012) fans in its Official International Facebook Page Has a number of ACTIVE unofficial international Fan Pages (Total fans amount to approximately 2 million) Has 5,565 followers in its active international Twitter account Great Score in SEO Google Search

Inactive International Youtube Channel (370 Subscribers)

Keyword Pringles

Pringles
No local website No local official Facebook page No local fan-generated Facebook page No local Twitter Great Positive Feedback from Social Media locally and internationally.

Frito Lay
Has active international Websites for many brands
Cheetos, Lays, Doritos, Tostitos, etc.

Has 17,600,627 (As of Feb. 8, 2012) fans in its Official International Facebook Page Has a number of ACTIVE unofficial international Fan Pages (Total fans amount to approximately 2 million) Has 5,565 followers in its active international Twitter account Great Score in SEO Google Search
Keyword: Pringles

Inactive International Youtube Channel (370 Subscribers)

Frito Lay
No local website No local official Facebook page No local Twitter Great Positive Feedback from Social Media locally and internationally.

Oishi
Has Has Has Has Has Has a local website an active local Facebook fan page no Twitter account moderate Social Media Presence an international youtube channel low SEO rankings in google

Keywords: Oishi

There is a big opportunity for Pik-Nik to grab market shares through the internet since local direct competitors of Pik-Nik have not yet started using online mediums to reach their target market. Pringles might have a different approach now since it has been divested by P&G to Diamond Foods. Only Frito Lay has had a successful viral campaign, but it was international.

30 respondents via Google Docs online survey Aged 17-27 respondents from various backgrounds and occupations 13 male respondents, 17 female respondents

URL: http://bit.ly/Ae98tJ Who buys snacks in your place MOST OFTEN? Where do you buy your snacks the most? How often do you eat snacks? What are your top three choices of snacks to buy [in order of preference]? (Brand Names) Why do you buy snacks? (Score with 1 as lowest and 5 as highest, scores can be repeated)
Tastiness Low Price Brand Name Uniqueness (It is one of a kind) Health Benefits] For a specific occasion (Party, etc.) Easy to bring around (Pocket size)

How often does "Person who buys your snacks" purchase snacks? What is your personal reason for buying/eating snacks? Explain if needed.

Where do you buy your snacks the most? (Multiple Choice)

Top three are Supermarkets, Convenience Stores, and Wholesale Stores (S&R, ShopWise, etc.)
30 25 20 15 10 5 0 Supermarket Conv Wholesale Canteen Specialty Store Sari-Sari

What are your top three choices of snacks to buy? (Brand Names)
Top three most chosen are Jack&Jill Products, Frito Lay Products, and other indirect competitors (Fruits, Chocolates, etc.)

Sales

Who buys snacks in your place MOST OFTEN? (Multiple Choice)

Many of the respondents buy snacks themselves (12 parents, 18 themselves)

Themselves Parents

Why do you buy snacks? (Score with 1 as lowest and 5 as highest, scores can be repeated)

What is your personal reason for buying/eating snacks? Explain if needed.

Common Responses (Most common to least common)
Comfort food, Stress Relief, Break/reward in between heavy/long tasks, To pass time/keep occupied To pass hunger, Meal Replacement, Energy Boost Convenience, To save time (Instead of a full meal), On-thego comfort food Taste, Many Flavors

A great factor for consideration in buying junk food is taste, followed by price. There is a great number who eat junk food as comfort food instead of just as a snack.

No specific emotional or occasional association with Pik-Nik Cannot be considered real comfort food by its consumers
Chocolates, Ice cream, and cakes; Frito Lay products is the most associated comfort food among the imported snacks industry.

Most recognizable (and favorite) Flavor for Pik-Nik is its Ketchup Fries Not really seen as a healthier potato chip snack

Wouldnt buy Pik-Nik deliberately, but would eat it if it was there already. Usually bought if nagsawa from other imported snack foods. Pik-Niks packaging is large and is difficult to squeeze into ones bag and consider it junky Many people are annoyed with the lid of the small Pik-Nik since it is not an effective resealer.

Users of the internet have a skewed demographic towards the younger (below 30) generation The Philippiness online market has a 50% penetration rate (approximately) 90% of internet users are on Facebook Flash Game Development Costs are at around 7,000Php 50,000Php depending on complexity
Pik-Niks target market (B and C SEC) consists of approximately 40% of the Philippine population

Place
California Manufacturing Plant Local Distributor Traditional Modern Trade Channels (Malls, Dept. Stores, etc.) Some General Trade channels (School cafeterias)

Premium Price due to its being an imported Snack

Similar pricing with Frito Lay and Pringles, but more expensive than Oishi and other local snacks.

Doritos @ 40Php Lays @ 80Php Pik-Nik (M) @ 80Php Pringles @ 97Php

Oishi Potato Fried @ 15Php Oishi Kirei @ 21 Php Jack&Jill Piattos @ 32Php Pik-Nik (S) @ 35Php

 All

Made from fresh potatoes, pure vegetable oil and other seasonings 100% no preservatives Ensures crisp, crunchy texture and a superb fresh fried potato taste. Packed in re-sealable, foil-lined, stay fresh canisters to retain freshness

natural potato snacks

 Two

years shelf life. Single Serve size is child safe with no metal rings or sharp metal edge on lid Every medium and large size container comes with a reusable, plastic lid

Unflavored

Original Shoestrings 50% Less Salt Shoestrings Fabulous Fries

Flavored

Ketchup Fries Cheddar Cheese Shoestrings Honey Mustard Shoestrings Hot! Shoestrings

SMALL 1.5 oz (42 grams) - 1.75oz. (50 grams) MEDIUM 3.75 oz ( 106 grams) 4 oz. (113 grams) LARGE 8.5 oz (241 grams)- 9oz (255 grams)

Sampling and Selling programs

Events Sponsorships

Dispenser Programs - (Cinema Snack Bars) On-Premise Activation Programs Recipes on the website Holiday/ Hamper programs Cable TV exposure

No differentiating factor No innovative factor except for Pik-Nik recipes Inadequate efforts to sustain good business OR obtain goal of becoming number 1.

Pik-Nik has only a few hit flavors, and is not as aggressive with their flavor innovation as compared to other companies. Pik-Nik needs to develop new strengths to be able to obtain more shares from its competitors

The consumers of junk food are of various ages. Pik-Nik chose to market to those aged 18-25. The characteristics I have obtained from my research survey has shown that:
they are mostly going through an emotional roller coaster at this point in their lives do not value healthy eating as much as other age groups

Said individuals are in the twilight zone of being the wild and care-free teenager, and a responsible adult. It is in these moments that these individuals make the first most important choices for their lives. It is in these delicate moments that we need our friends the most for support, but only real friends stick with you thru good times and the bad.
Ex: high-schoolers choosing/entering college, college students choosing their first job, couples checking where they are headed towards, etc.

Communicating Healthy is problematic for Pik-Nik since it is still considered a junk food and there is little value added to it being from all natural potatoes and 100% no preservatives. Other brands have an emotional connection with the product
Frito Lay=Comfort Food

The Philippine environments online market is growing steadily, with its current penetration level at 50% of the population. This new channel is a good, cheap, and effective way to reach Pik-Niks target consumers.

These periods of uncertainty in my young adult life are moments that will define me, and I want to know that I am making the right choices. This is the moment I need the most help, and it is only true friends that will stay with me through good times and the bad, and actually be able to give me good advise to push me in the right direction.

Since most snacks are very unhealthy, they are not able to position themselves like PikNik. Using the healthy and all-natural asset of the Pik-Nik brand will be the factor that makes Pik-Nik The friend that wont lead you astray

Young, emotionally high, teenagers, and Yuppies transitioning to the adult life (Aged 16-27) Fun loving and yet care for the consequences of their actions to their future Those individuals who are in the middle of their soul-searching through the choices they are about to make.

To have at least 20,000 fans by the end of the year on Pik-Niks new facebook fan page.
Based off of other local fan pages with approx. 20,000 fans in approx. 2-3 years.

To have associated the positioning of Pik-Nik as the Friend you can count on beyond the promotional activity. To have increased Pik-Niks market share

Produce a flash game to be posted online (Facebook Fan Page), with an online scoring system and public leaderboards.
Tetris, with tiles as Pik-Nik strips Weekly Winners obtain a 100Php Pik-Nik Gift Certificate

Utilize PPC and Word of Mouth to drive traffic to the Facebook site Have a photo uploading competition where users nominate someone who needs a friend, and a little cheering up

The Facebook Fan Page

Daily topic to engage consumers Informs consumers of Pik-Nik promotions and events Increase awareness and positioning of the brand

Estimated Cost
Customized Pictures (5,000Php) Pay Per Click Ads (200,000Php for 4 months)

Weekly campaign (4 months)

Pik-Tris (Pik-Nik Tetris)
Posted online as a Facebook App Score based on Time How fast can you consume 50 tetris lines Scores reset every week Prize of 100Php (Pik-Nik Gift Certificate) goes to the top 10 players for the week

Estimated Cost
Game Development (10,000-25,000Php) Gift Certificates (12,000Php)

Main campaign (From Month 3 to Month 8)

Online Contest
Share your story: If your friend has a problem, and you believe that he needs a Pik-Nik friend to cheer him up, post your story online, and get a chance to win 100,000Php and a special prize to help your friend in his/her current problem! Photo and story-writing contest Part of judging criteria are: Number of Facebook Likes (Minimum of 50)
Pik-Nik Merchandise bought (Minimum of 20)

5 winners

Estimated Costs
Prizes (700,000-1,000,000Php)

Main campaign Promotions - ATL (TV Ads)

30sec short video ad Advertise the online site and the contest Showcase the message Walang iwanan!
to be uploaded in Youtube

Estimated Cost

Studio 23, TV 5

Show how good friends stick out for each other Show how eating Pik-Nik will not lead to bad consequences (Healthy)

Production (200,000Php) TV ad placement(2 million Php for2 months)

Main campaign Promotions - ATL (Print Ads)

Advertise the online site and the contest Cosmopolitan, Mens Health, Womens Health

Estimated Cost
Production (50,000Php) Print placement(300,000Php for 2 month ads)

Main campaign Post event

Video ads of the winners and their prizes To be posted on Youtube Only The story and how Pik-Nik helped them Attempt to create buzz via viral marketing Estimated Cost Production (100,000-200,000Php)

Establish an emotional connection with the consumers Establish Pik-Niks online presence and be able to connect with the consumers more. Drive sales up and become number one in the premium imported snack foods market.