Kraft Foods Template ppt by lovemacromastia

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									  Kraft Foods
  at Walmart


 Partnering with
Walmart to Build
   Kraft Brands

    March, 2009
Customer Marketing Best Practices

    1. Collaboration and retailer understanding
        Strong collaboration between manufacturer and retailer ensures that the needs of both
        are met and results in mutually beneficial and actionable programs
    2. Meeting retailers goals and initiatives
        The most successful programs leverage manufacturer and retailer equities and assets,
        address the retailer‟s key initiatives, and deliver on the retailer‟s marketing priorities.
    3. Retailer differentiation and added value
        Retailer-specific solutions strengthen shopper loyalty by creating value for the retailer and
        shoppers. Manufacturers can help the retailer better understand shoppers‟ needs by
        sharing and applying research and insights from their respective categories.
    4. Retailer specific solutions based on shopper insights
        The most relevant solutions come from understanding how demographic and lifestyle
        trends and the changing needs and attitudes of consumers effect shopping behavior.
    5. Effective in-store execution and measurement
        Developing a cross-functional team and working closely with marketing and operations
        helps ensure flawless execution. Formalizing objectives and setting evaluation metrics for
        measuring program performance is essential for evaluation and evolution.

2
Walmart‟s Marketing Programs are Based
on 3 Beliefs:

1. Save Money, Live Better is a key principle from Sam Walton
   that is relevant today


2. “Brand Aspirationals” are the core growth consumer

         Looking for good brands at great prices

3. Food & Beverage is a key growth opportunity




3
Understanding the Grocery Opportunity

• Food and beverage is a key conversion opportunity for Walmart,
  as it brings in more shoppers with greater frequency, and
  attracts a greater share of their spending than other
  merchandise categories

• Walmart is experiencing success in the current economic
  downturn, as consumers spend more of their food dollars at
  Walmart Supercenter

• The key to sustaining this success is to develop solutions-based
  programs to meet shopper needs




4
 Leading with Food & Beverage

• Food is a frequent destination category that can be leveraged to drive
  cross-box shopping
• Compared to other merchandise categories offered at WMSC, Food &
  Beverage brings in more shoppers, with greater frequency and attracts
  a greater share of Walmart spending

                            Share of   Share of   Share of
                            Shoppers    Trips     Dollars    Trips / HH
      Food & Beverage         94%        80%        62%          22%

      General Merchandise     87%        35%        13%          10%

      Health & Beauty         86%        40%        13%          12%

      Non-food                87%        44%        13%          13%




 5
Following Grocery Division Principles

• Price Image
– Value
– Prominent displays with clear pricing signage
• Provide solutions delivering consistent platforms that meet shoppers‟
needs
– Meal Solutions
– Health & Wellness
– Seasonal
• Align with In-Store Presentation
• Advertising focused on affordability and “saving people money in the
shopping basket”
• Clarity of Offering
– “Good, Better, Best” in ranges
    • SKU rationalization helps shoppers navigate through the store (average shopper spends
       21 minutes in WMSC)
– Aligned with solution
• Seasonal Opportunity
– Consistency in packaging (i.e. Halloween)
– Blocks of products with common price points



6
Developing Successful Marketing
Programs



                                                                        Concept
                                                    Program              Testing      Refined
Foundational    Platform     In-depth Research      Concept              Among        Program    Execution
  Insights     Development                          Ideation              WM          Elements
                                                                        Shoppers




                             Walmart Touch Points Integrated Throughout The Process




 7
 Focusing on Shopper Segments with the
 Greatest Growth Potential
• Common thread among key shopper segments at Walmart is that they are all
  value driven – best opportunity for mutual growth is with Brand Aspirationals

      Price Value Shoppers               Brand Aspirationals             Price Sensitive Affluents
     • Younger, family households       • Mature households, only 1/3   • Mature, empty-nester HHs
     • Many unemployed and/or             have kids at home             • Educated, affluent, employed
       homemakers                       • Less affluent and educated




          Lifestyle & Attitudes               Lifestyle & Attitudes            Lifestyle & Attitudes
  • Traditional values, family a top   • Brand-conscious, they seek     • Time-constrained, never have
    priority                             brand name products              enough time
  • Live paycheck to paycheck,             – Trust brands for quality   • Pride themselves on being „smart
    many have experienced                  – Simplifies shopping          shoppers‟, getting the best deal
    financial crises                   • Not loyal to any retailer        whatever it takes
  • First to cut back when times       • Shop wherever they need to,    • Social and community-involved
    are tough                            to get desired brands within   • Focused on financial security
                                         budget


 8
 Meeting Walmart Shoppers‟ Needs

• Walmart Shoppers are concerned about the economy and are changing
their behaviors accordingly
    – Preparing more food at home - cooking and eating at home, eating
       leftovers, brown-bagging
    – Staying home more - entertaining at home more now vs. going out

• Walmart Shoppers have some key needs that have been around for a
while, and there is new news on each:
    – Convenience: Needs expanding as consumers adapt to economic
      hardship, but time pressures still present
    – Quality: Staying at home more, entertaining at home demands
      quality brands and experiences
    – Health & Wellness: Shoppers seek to achieve health & wellness
      goals within constrained budgets

• Walmart Shopper Segments are all value-driven, for different reasons
   – Shopper Marketing programs must meet the unique needs of each
     segment by offering value to help build loyalty

 9
Shoppers Say Walmart is Ideally Suited
to Provide Solutions
             “They stand for convenience and low price and this is just
             the next logical evolutionary step in their growth.”


              “They are really geared towards
              families and making things easy …
              you come here and everything
              you need is in one spot.”



                                     “Because you depend on Walmart for convenience and
                                     you need their help … I need these ideas.”




          “People are coming to shop in bulk … meal ideas would give
          more people a reason to come to Walmart …”


10
 Walmart Shoppers Need Convenient Meal
 Solutions
                                                        My Ideal Meal Solution Has …
                                                                                                                           Ideal
                                                                                                                            Meal
                  My Challenges …                                                                                         Solution
                                                      Creative          Quick &   Simple,                                 Program
                                                        Meal          Convenient   Easy
Limited Time to Shop, Prep and Cook                    Ideas           Shopping Preparation

 “People get home, and don’t want to spend 3
                                                      If I see an idea, I am likely to buy
  hours cooking. I need ideas requiring just a few         the ingredients and try it
  ingredients.”

                                                       I like it when stores offer quick,
Need Creative Ideas                                              easy meal ideas

 “I’m tired of eating the same old boring thing …
  my kids say, Mom, can we eat something
  different?”                                        Always looking for easy meal ideas



Lack Cooking Skills
                                                      I'd like great-tasting, low effort,
 “You don’t think about making a kabob because it             "homemade" meals

  seems such a fancy, big presentation, but they
                                                             Q: How strongly do you agree or disagree …? (Top 3 box %- 1-10 scale)
  look so easy to put together …”


 11
Walmart Shoppers are Concerned About
the Economy
• Walmart Shoppers are adjusting their behaviors in tough economic times
• Compared to other consumers, WMSC shoppers are more likely to…
     – Say their financial situation has “gotten worse” in the last year
     – Be “extremely concerned” about the economy

                                                       •Overall
     “Within the past 3 months how has your              90% have cut back on non-essentials
                                                         49% stick to a budget
               spending changed?”
                                                       •At Home
                                                         59% use AC/heat less
                                                         4% have moved to a less expensive home
 Spending More                         Cutting         •Dining
 or                                   Back On            86% eat at home more
 No Change       28%                                     42% eat at less expensive restaurants
                                      Spending
                                                       •Leisure
                          72%                            38% entertain at home more vs. go out
                                                         32% have stopped taking vacations
                                                         25% rent movies vs. go to the theatre

                                                       •Driving
                                                         9% have sold their car/bought more fuel-
                                                         efficient car
                                                         5% are carpooling
12
Walmart Shoppers Are Finding Ways to
Make Meals More Affordable
 • Making meals more affordable by sourcing food at home is a key
   strategy for stretching budgets
                                                           ”We're eating out less so
                                                            we can afford to buy
     Among WMSC Shoppers…                                   groceries.”

     74%   say they have avoided going out to eat and                                  ” Packing lunches for school
                                                                                        and work has saved us a lot of
           ordering in carry out food over the past                                     money. Also, making meals
           three months*                                                                from scratch enables us to save
                                                                                        more.”
     65%   look for recipes that fill up the family for
           less

     81%   say they are making meals that provide
           leftovers                                              ” I tend to make foods
                                                                   that are good as
                                                                   leftovers, spaghetti,
     68%   are brown-bagging lunch                                 things like that... in
                                                                   larger quantities.”
     76%   limit the purchase of non-meal food items
           (e.g., vending, c-store, movie theatre, etc.)




13
Walmart Shoppers Seek Ideas While In-
and Out-of-Store
• In keeping with their value-consciousness, Walmart Shoppers are
  significantly more likely to review sale items in a store circular or ad
         In-Store                  Out-of-Store               Both In & Out-of-Store
     71% look at store       90% of WMSC Shoppers look        67% are planning meals
     circulars in-store to   at store circulars received by   around what‟s on sale
     plan shopping trip      mail or in newspapers*

                             74% are spending time
     63% look in the store   thinking through meals/
     for affordable          menus before shopping
     solutions to meal
     planning
                             63% look for recipes on-line*

                             53% look at store circular
                             deals on-line

                             58% look on-line for
                             manufacturer coupons or
                             other deals*




14
Meal Solutions Opportunity at Walmart

• Help Shoppers “Save Money, Live Better” by providing AFFORDABLE
  solutions focused on convenience, quality and health & wellness from
  Kraft and Walmart

• Identify shopper centric marketing platforms that enable Kraft to most
  effectively leverage portfolio depth and breadth, creating volume
  growth for both Kraft and Walmart

• Build a program to fully meet consumers‟ needs by analyzing category
  interactions across the store and bringing different categories together
  for one stop shopping

• Enhance Walmart‟s positioning as a solutions resource with a complete
  meal solutions destination that delivers relevant food ideas and
  ingredients in a convenient format




15
  Kraft‟s Meal Solution Equities Bring
  Important Advantages
   • Vast portfolio of popular American brands, breadth of product portfolio enables
     full meal solutions (beverages, sides, desserts, etc.)
                                                         Kraft        Walmart

                                                                                                     63%
Helps me prepare meals that my family likes                                        43%

          Helps me make meal preparation and                                                         62%

                             planning simple                     30%

                                                                                                60%
             Has meal ideas for people like me                         34%

                                                                                               59%
                    Provides simple meal ideas          22%

                                                                                               58%
            Gives me ideas for complete meals                       31%

         Helps me lead a healthy and balanced                                             56%
                                      lifestyle               27%

                                                                                         54%
             Gives me creative ideas for meals           24%

       Is a leader for providing meal and recipe                             39%
                                           ideas         24%



  16
Kraft Brings Strong Meal Solutions
Expertise and Assets

Kraft Kitchens
• Customized, consumer-tested food ideas, including
  relevant BFY ideas
• Superb culinary expertise from full-time experts:
     – Lever latest food trends and knowledge of food AFH
• New, consumer-endorsed food idea communication
  strategy


Marketing Assets
• Customized content in Food & Family magazine
• Digital content on Walmart.com




17
“Simple Mealtime Ideas” by Kraft


• As part of a 2008 CSI, Kraft partnered with Walmart to execute
  a Simple Mealtime Ideas program in Walmart Supercenters
• Walmart‟s positioning as a solutions resource was enhanced with
  a complete meal solutions destination that delivered relevant
  food ideas and ingredients in a convenient format
• The promotion was executed July 15th – September 2nd, 2008
  and effectively drove significant incremental volume for both
  Kraft and Walmart
• Simple Mealtime Ideas was featured in the Seasonal Aisle in
  1,700 Walmart Supercenters
• The program included 51 Kraft brands and nearly 200 SKUs
• Products were grouped by breakfast, lunch, dinner, and snacks




18
Simple Mealtime Ideas Program Overview

• Walmart‟s Seasonal Aisle was transformed into a destination
  area for shoppers to find simple, easy, affordable, and delicious
  mealtime ideas using their favorite Kraft brands

• Mealtime ideas aligned with consumer needs across breakfast,
  lunch, dinner and snacking occasions

• Merchandising layout provided clarity of offerings across meal
  occasions

• In-aisle signage featured Kraft food photography to entice
  shoppers

• An integrated 360°communication plan included multiple touch
  points to provide strong consistent messaging across tactics




19
The Simple Mealtime Ideas Seasonal Aisle




20
Simple Mealtime Ideas
Integrated
Communication Plan
                                                                                        Print Ads
                                     Sampling Events
                         PR




        walmart.com                                                               Tab

                                 Simple Mealtime Ideas Aisle




                                                                                   In-Store TV Spots

                                                                            #MEALS Recipes
     Email Blasts
                                                               Recipe Booklets

                360° marketing programs are important as Walmart Shoppers
21                 seek ideas for meeting needs both in and out-of-store
Simple Mealtime Ideas Effectively
Reached Walmart Shoppers

     • Although they may come into WMSC with ideas and lists, Walmart
     Shoppers seek solutions while they are in the store
        – Solutions included products and easy, compelling ideas
     • Shoppers navigate using signage and products in tandem
        – Overhead signage helped direct shoppers when viewing from across
          aisles, or from front or back of store
        – Looked to endcaps to get an idea of what was in the aisle
     • Product selection is key to compelling solutions
        – Popular, high-penetration products drew shoppers in
        – Products best „fit‟ with theme
        – Mix of complementary items rounded out assortment against theme and
          could highlight lower-penetration products
     • Clear communication is critical in busy store environment
        – Clear, consistent, compelling messages delivered across touch points
        – Marketing collateral used to support theme and drive key behaviors –
          e.g. recipe cards to serve as shopping list



22
Orchestrated Interaction of Key Elements
to Achieve Success




23
Simple Mealtime Ideas Summary

     • This is an example of a promotion recognized by Walmart. It‟s a unique
     collaborative effort that was carried out flawlessly, and on a scale and
     scope that neither company had attempted: the “Simple Mealtime Ideas”
     event. Quick. Convenient. Affordable
     • The inspiration for this in-store experience started with consumers‟
     needs
     • The display conveniently brought our products together with engaging
     photography and delicious recipes to get people cooking
     • Easy meal ideas helped families plan breakfast, lunch, dinner or snacks
     • Simple Mealtime Ideas was featured in stores across the country for
     seven weeks, in total, 66,000 displays each featuring 190 products
     • That‟s the equivalent of 176 miles of four-foot displays




24
Customer Marketing Best Practices

     1. Collaboration and retailer understanding
         Strong collaboration between manufacturer and retailer ensures that the needs of both
         are met and results in mutually beneficial and actionable programs
     2. Meeting retailers goals and initiatives
         The most successful programs leverage manufacturer and retailer equities and assets,
         address the retailer‟s key initiatives, and deliver on the retailer‟s marketing priorities.
     3. Retailer differentiation and added value
         Retailer-specific solutions strengthen shopper loyalty by creating value for the retailer and
         shoppers. Manufacturers can help the retailer better understand shoppers‟ needs by
         sharing and applying research and insights from their respective categories.
     4. Retailer specific solutions based on shopper insights
         The most relevant solutions come from understanding how demographic and lifestyle
         trends and the changing needs and attitudes of consumers effect shopping behavior.
     5. Effective in-store execution and measurement
         Developing a cross-functional team and working closely with marketing and operations
         helps ensure flawless execution. Formalizing objectives and setting evaluation metrics for
         measuring program performance is essential for evaluation and evolution.

25

								
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