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Cheestrings Diagnosis

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by

Ali Mahmood

on 11 February 2013

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Transcript of Cheestrings Diagnosis

Cheestrings Kids Cheese Snack Market Value: £305.6m, growing at 3% YOY

Key UK players: Cheestrings, Dairylea, Chedds, Babybel

Dairy Maniacs, Primula Pods

Target: Kids aged 6+, Mums, Families

Consumption Behavior: Lunchboxes, Casual snacks, On-the-go, cooking Snapshot The Cheese Market The cheese market is worth £2.5b, growing at 6% YOY

Cheese consumption has increased 1.7% over the past year and has recorded a 8.4% increase over the past ten years

Strong activity from established brands has contributed to growing visibility and greater segmentation

Cathedral City voted in top 20 brands for 2012 Issues in the Market Rising cost of raw materials - especially milk

Consumer spending is expected to be tight for families due to government benefit cuts, high cost of living and rising taxes

Parents need convincing and assurances products are healthy for their kids

High pressure to reduce fats and salt content

FSA guidelines pressure to be clearer and transparent with advertising communications and product ingredients

Brands heavily relying on promotions and deals

Key Players Launched in July 2011 (Back to school period)

An extension of Cathedral City (most popular branded cheddar)

Claims: 100% Cheddar, Natural, No preservatives

Target: Kids aged 6+, Mums

Range: Cheese and Toasties, Nibbles and Bricks

Distribution: All major retailers Strong heritage (60 years)

Hit by criticism of ambiguous marketing and slogan: ''Packed with good stuff''

Relaunched in 2010, reducing from 12 to 7 ingredients

New Claim: All natural ingredients

Target: Repositioned more seriously for mums

Range: Triangles, strip cheese, dunkers, slices and spread

Distribution: All major retailers Reasons to believe Mums are under pressure to find healthy and convenient ways to fill lunchboxes

Snacking is a crucial part of kids eating habits

Cheese can also be seen as an indulgent treat

The cheese market is worth £2.5b, growing at 6% YOY

Cheese ticks boxes

- Rich in calcium (Good for teeth and bones)
- Vitamins help avoid illnesses
- Natural ingredients
- Now low in salt Target: Kids aged 6+, Mums

Claims: Rich in Calcium, Vitamin D, All natural, 1 glass of milk

Range: Original, Twisted, Spaghetti

Distribution: All major retailers and independents Cheestrings Mum Attack
Packaging improves with new Mr. Strings and sharper colours. Outterpack appeals to mums, innerpacks to children
- Rich in calcium claim made on pack

New TVC focusing on Cheestrings = 1 glass of milk, Calcium


Good food made fun. Packaging and website filled with trivia, games, collectables Cheestrings Answers... Diversity Promotion Teamed up with ''Britain's Got Talent'' winners

Instant Win Mechanic

''Money-can't-buy'' chance to win tickets to events and street dancing master-classes with the group New TVC for Spaghetti NPD Emphasizing on ''Calcium''

Appealed to a wider audience

Memorable and catchy tune Teenagers Mums Adults Kids Marketing Initiatives Mr Strings meets the minions Despicable Me 2 Movie promotion Follows the hugely successful Despicable Me animated film grossing over $540m worldwide

Releases in Summer 2013, just in time for ''back to school''

Minions resemble cheese and look like cousins of Mr.Strings

Strong positive association with fun, laughter and truly capturing the imagination of kids and families alike Despicable Me 2 movie tie-in
Offer chances to win 3D cinema tickets

Facebook engagement through Despicable Me's UK page

Create new URL with both Cheestrings characters and Minions, offering games, tv spots and exclusive content 2for1 offers for a day out in the theme park
Win 50 Annual Merlin Premium Passes

Resonates with the target audience

Kids will associate a fun day out with the brand

Promote by adding mention on TVC and solid visibility in-store through packaging

Mentions on Facebook, Twitter and Website Thorpe Park Promotion Recent Marketing Diversity Promotion Teamed up with Britains got talent winners

Instant win mechanic

Money can't buy chance to win tickets to events and street dancing master classes with the group New TVC for Spaghetti NPD Emphasizing on ''Calcium''

Appealed to a wide audience

Memorable and catchy tune Launched in Summer 2011 (Back to school period)

Launched by First Milk under the brand name: Dairy Maniacs

Claims: 100% real cheddar, Dairy goodness

Target: Kids 5+

Range: Cheddar Stix

Distribution: Most major retailers Brand Overview

Started in 1972, became public in 1986

World leader in food ingredients and flavours serving the food and beverage industry. Worth €3.7b

Leading supplier of branded foods in the UK and Ireland. Worth €1.7b

Key consumer brands:
- Meat: Walls, Richmond, Mattessons
- Dairy: Low Low, Cheestrings
Introduced in 1996

Brand Vision: ''To be loved by kids and mums and to be in every lunchbox’’

2001: Reached €25m in value sales

2004: Expanded to Europe, starting with France where it was renamed ‘’Ficello’’

2007: Smokey bacon and Pizza flavours dropped

2008: Mr Strings is redisigned and health benefits are clearer on packs. Sales increase +9% to £55.6m

2010: Cheestrings shots (launched a year earlier) become suspended when Cheestrings Spaghetti is introduced. NPD expected to add incremental sales

2012: Cheestrings is in growth with 30%+ market share while also maintaining a healthy reputation Despicable Me 2 Website Digital In-Store Promos Jan Feb Mar Apr May Jun July Aug Sept Oct Nov Dec TV In-Store 2for1 tickets to Thorpe Park +Chance to win 50 Annual Merlin Premium passes Movie tickets Competition Online Enhancement Facebook Page Extension Launch 5 months TV Advertising PR+ Digital Promotion Chance to win a rock star video shoot
+iPods Be a Rock Star Kerry Foods Overview £3.5m 29% 30% 14% 7% 6% 16%
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