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Pringles

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by

Isabelle Simmonds

on 19 October 2014

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Transcript of Pringles

Original with a twist
Did you know?
Did you know Pringles are sold in 140 countries? (Pringles 2014)

Did you know pringles generate US$1.4billion dollars in sales every year? (Pringles 2014)

That the first pringle was sold in October 1967? (Pringles 2014)
Chief Marketing Officer: Gabrielle Puskas
Social Media Manager: Isabelle Simmonds
Graphic Designer: Toni Hodkinson
SEO Specialist: Laura Tran
Lead Generator: Tiffany Fazon
SWOT Analysis
Strengths
Cost advantage with a global average price of $3.52(USD)
(HuMuch 2014)

Range of product flavours e.g. Salt and vinegar, sour cream and chives, original, chedder cheese

National and global exposure

Owned by Kelloggs, a leading snackbrand organisation. Listed #54 on the Forbes Global 2000 list for the most innovative companies of 2013. (Forbes 2014)

Proposed packaging will make it easier for customers to consume pringles
SWOT Analysis
Weaknesses
SWOT Analysis
Opportunities
Room for innovation e.g. change in packaging

Increased consumption of snack food products

27, 476, 762 on Faacebook, opportunity to increase interaction via social media

Consumers are seeking healthier food options and there is increasing pressure on organisation to produce healthier foods. Pringles could bring out a healthy snack range
SWOT Analysis
Threats
Increased competition from smiths and homebrand products e.g. STAX (Smiths)
PESTLE Analysis
Political
PESTLE Analysis
Economic
PESTLE Analysis

Increased substitudes e.g. chips, lollies and chocolate

Global economic downturn
Increase in health-conciousness reducing the demand for chips

The rising cost of labour in Australia

Lack of online presence

Out-dated packaging

Proposed packaging may increase the price
The Australian Government introduced the 'Australia: the healthiest country by 2020' in the Obesity Working Group (2009) is a report which proposes a number of national changes which, could impact on snack-food organisations, such as pringles. The document found in Obesity Working Group (2009) proposed:
To "review the taxation system to enable access to healthier food and active recreation'
To "provide disincentives for unhealthy food by considering increasing taxes for energy dense food"
"To reshape the food supply toward lower risk products and encourage physical activity'
"Provide subsidies for the transportation of fresh food in rural and remote areas"
The Australian government has also imposed a number of laws on organisations to limit their impact on the environment, this is discussed further in the environmental section of this PESTEL analysis
Increase in inflation at 3% in July 2014 which can prevent consumers from purchasing pringles (RBA: Australian economy snapshot 2014)
Economic growth 3.5% (on the rise). Means consumers are willing to spend money on wants and needs. (RBA: Australian economy snapshot 2014)
Interest rates have remained at 2.5% good for Pringles and consumer spending(RBA: Australian economy snapshot 2014)
Australias population is 23.3 million and growing at 1.7%. This is a positive for pringles as it means for customers. (RBA: Australian economy snapshot 2014)
PESTLE Analysis
PESTLE Analysis
Social
Kelloggs have a number of programs to give back to the communities in which it operates. Such programs include 'Planting Trees in Latin America', 'Beach Clean up in Puerto Rico' and 'Environmental education for kids in Linares, Mexico' (The Kellogg Company, 2012)
An increase in the popularity of snack food items
There has been social pressure on organisations such as pringles to produce healthier product options simply due to "25% of Australian adults (aged 18 and over) and 8% of children (aged 5-17) being obese in 2007-08" found in the The Australian Institute of Health and Welfare (2012).
Graded relationship between socioeconomic status and obesity
Technological
With the technological advancements and greater interaction on social media platforms Pringles must interact with customers through competitions, games etc
Kelloggs facilities have "looked for new ways to use new technologies to reduce energy use and greenhouse gas emissions" in 2012 found in The Kellogg Company (2012)
Environmental
There has been increasing pressure on companies, such as pringles to produce envirnmentally friendly packaging
Kelloggs have faced incresaing pressure to be more environmentally friendly. Their company outlined their efforts to be more environmentally friendly:
Kelloggs are working towards their goal of reducing energy use and greenhouse gas emissions "by 15-20% from 2005 to 2015" (The Kellogg Company, 2012).
Only 3% of Kelloggs overall waste ended up in landfil a recent report found. 69% was recycled and 28% became animal feed (The Kellogg Company, 2012).
Kelloggs have been working towards producing more sustainable packaging to all its products (The Kellogg Company, 2012).

Legal
Original with a
twist
To redesign the original Pringles packaging in order to make it easier for the consumer to reach the chips at the bottom of the pringles can
The new innovative design wil consist of a spring like feature at the bottom of the can that consumer can simply twist to evevlate the inside floor of the can and raise the chips to the top
Product
Price
Cost advantage with a global average price of $3.52(USD) (HuMuch 2014).
Little price increase for the added convience
Original with a
twist
Promotion
We will reach our target market through the use of social media, outdoor print media (such as banners), university and tafe publications (such as UTS vertigo) and the MX train newspaper.
Those advertisements will be similar to these (Advertolog, viewed 26 August 2014, <http://www.advertolog.com/.../sour-cream-onion-8334755/>, Flickr 2009, viewed August 26 2014, <https://www.flickr.com/photos/jedor/3729004757/>, Creative side 2009, viewed 26 August 2014, <http://creativeside.wordpress.com/.../once-you-pop-you.../>)
Original with a
twist
Place
Pringles are sold in over 140 countries worlwide and are avaliable all major supermarkets and convenience stores
Pringles are currently sold in a range of supermarkets such as those below.
The new Pringles with a twist however, will aim to be avaliable in these supermarkets and more.
Oblige with food safety Australia's food handling conditions



Comply with Food authority NSWs requirements





It is important that Pringles comply with these standards to ensure that the new Pringles with a twist product be successful without any legal ramifications.
Justification of product choice
Justification of product choice
Response to strong consumer demand for Pringles packaging improvment
Secondary research concluded consumers worldwide experienced the same issues with the Pringles can design
Facebook group with over a million likes hating the pringles packaging, see below:
Analysis of alternative design ideas has concluded that the Original design is best in terms of functionality, aesthetics and cost
We must innovate in order to uphold Kellogg's innovative reputation
The new product will give us a competitive advantage over competitors such as Lays and Oishi
Graph: Coles supermarket 2014, Potato chips, viewed 26 August 2014, <http://www.coles.com.au/>
References
Advertolog, n.a., viewed 26 August 2014, <http://www.advertolog.com/.../sour-cream-onion-8334755/>
Australia GDP Growth Rate, 2014, Trading economics, viewed 25 August 2014, <http://www.tradingeconomics.com/australia/gdp-growth>
Coles supermarket 2014, Potato chips, viewed 26 August 2014, <http://www.coles.com.au/>
Creative side 2009, viewed 26 August 2014, <http://creativeside.wordpress.com/.../once-you-pop-you.../>)
Flickr 2009, viewed August 26 2014, <https://www.flickr.com/photos/jedor/3729004757/>
Forbes 2014, Kellogs, viewed 20 August 2014 <http://www.forbes.com/companies/kellogg/>
HuMuch 2014, Pringles (original) Prices, viewed 20 August 2014 <http://www.humuch.com/prices/Pringles-Original/______/876>
Phillips, K. 2014, Pringles: When the packaging is the brand, viewed 23 August 2014, <http://www.brandstoke.com/2014/01/20/pringles-packaging-brand/>
Pringles 2014, Wikipedia, the free encyclopedia, [ONLINE], viewed 24th August 2014, <http://en.wikipedia.org/wiki/Pringles>
RBA: Australian Economy Snapshot, 2014, viewed 25 August 2014, <http://www.rba.gov.au/economy-snapshot/index.html>
The Australian Institute of Health and Welfare, 2012. Australia’s Health 2012. The Australian Institute of Health and Welfare (AIHW), viewed 25 August 2014, <http://www.aihw.gov.au/WorkArea/DownloadAsset.aspx?id=10737422169>
The Kellogg Company, 2012. Better Days, Brighter Tomorrows 2012 Corporate Responsibility Report, The Kellogg Company, viewed 26 August 2014, <http://www.kelloggcompany.com/content/dam/kelloggcompanyus/corporate_responsibility/pdf/2012/2012_Kelloggs_CRR.pdf>
The Obesity Working Group, 2009. Australia: the healthiest country by 2020. Commonwealth of Australia, viewed 24 August 2014, <http://www.health.gov.au/internet/preventativehealth/publishing.nsf/Content/E233F8695823F16CCA2574DD00818E64/$File/obesity-jul09.pdf>


















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