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Doritos Marketing Campaign

Marketing Management 341

Aros Mackey

on 4 April 2011

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Transcript of Doritos Marketing Campaign

OBJECTIVE Stimulate action OBJECTIVE Stimulate Action Marketing Management 341 Toreva Packard, Jon Dahlin, Mark Taylor, Aros Mackey, James Jones, Sara Wormell International Influence Remind customers about the brand and stimulate them to action, in order to increase the frequency of return customer purchases. Remind about Brand Once a purchase is made, a marketer can use promotion to help build a strong relationship that can lead to the purchaser becoming a loyal customer. For instance, many retail stores now ask for a customer’s email address so that follow-up emails containing additional product information or even an incentive to purchase other products from the retailer can be sent in order to strengthen the customer-marketer relationship.
-Reinforce brand image through promotions Overall Promotional Objective Remind customers about the brand and stimulate them to action, in order to increase the frequency of return customer purchases. Positioning Statement For all those who enjoy a crunch packed in a variety of flavors that will light up your taste buds our Doritos chip is the brand of choice to spice up any occasion. Target Customer -Primary shoppers in the home
-college students (Ages 18-24) Customer Opinion - Superbowl, cleaver advertising commercials, flavors, crumbs (the best part) Directed Opinion from Advertising - The product is superior to other brands in terms of flavor and overall product
- The product is a “must” at fun events such as parties, barbecues, and get-togethers
Purpose of the Advertising -Remember the witty and unique commercials when at the grocery store, so
customers will choose our brand over others
-Make purchases more frequently
-To always keep a bag on hand in their cupboard, or in the pantry
-There is always a reason for Doritos Tone of the Add -upbeat
-humorous Generated Ideas- "Doritos, making normal life spicier"

For all those who enjoy a crunch packed in a variety of flavors that will light up your taste buds our Doritos chip is the brand of choice to spice up any occasion. With this, we will be able to convey our positioning in different advertisements to show how Doritos will “spice up any occasion.”

Doritos make a normal life more fun. This is our message to increase the frequency people buy Doritos. Doritos are often bought for special occasions. Consumers getting the idea that Doritos can also be used to improve everyday life will increase their desire to purchase the product.

We think this idea has the potential to work in many different mediums. Visual mediums will generate more memorable impression with consumers, but strictly audio advertising has potential as well. Step Five: Propose a Media Plan Advertising For our promotional tools, we are going to use place based advertising to reach people outside of their home. The reason we chose place based advertising is because we feel that we will be able to reach more people in more places in a variety of different ways. . We want to remind customers about the brand and stimulate them to action in order to increase the frequency of return customer purchases. Sales Promotion The sales promotions that we feel best fits our advertising campaign are coupons and point-of-purchase displays. People are more likely purchase items that they haven’t in the past (i.e. new flavors) when they are offered a discount. We also think that our displays will draw shoppers’ attention to our particular product due to eye-catching in-store displays. Public Relations We chose to have our product appear in different forms of entertainment, known as product placement. We feel like this will send a more subtle message about the brand and its desirability than does marketer-controlled advertising. We also felt like because our target audience participates in a lot of television viewing, we will be able to get that subtle message across to many. Sponsorship For the type of product that we have, we felt like it was better to publicly associate our brand with an event that Doritos supports financially so that we can link the event to interests that our target audience may have. We also feel like it is important to influence brand awareness, attitudes, and feelings and sponsorship is an excellent median for that. For our target audience, any major sporting events, rock concert to an entertainment convention would reach our target audience effectively. Additional Media (Out-of-Home) We want to extend our advertising to additional media in the area of billboards or transit. It is important to have this additional media so that we reach those people that may not use the Internet of watch T.V. We think it will also be effective because people are often in transit at some point during the day, making ti possible to place brief eye catching advertisements along people’s travel routes. One characteristic of this out-of-home type of advertising is that it can result in high message frequency among people who often travel the same route past an outdoor board. We will have complete control over the location of our message as well as the size, site, and duration of the advertisement. Due to the fact that we need only a few words to convey our message, the outdoor medium is appropriate. Our objective for this ad is to sustain product awareness by reaching 40% of target customers 20 times a month.
Media Objectives: 1. Define the specific target audience you want to reach both demographically and psycho graphically.
The target audience that we want to reach demographically are primarily ages 18-24, but on a larger scale we would like to reach people up to 51 years old both male and female. We would also like to target people that are in families to create this larger target market. Our psycho-graphic segmentation will be to those people with the lifestyle that contains sports and have on the go lifestyles.

2. Reach Objective - What percent of the target audience do you want to reach in each four week period? Describe your reasoning.
The percentage of the target audience that we want to reach in each four week period is 92%. People age 18-plus watched 319 minutes of television a day, according to the Media Comparisons Study 2010 commissioned by the Television Bureau of Advertising. That figure more than doubles the time spent on the Internet (156.6 minutes), and dwarfs daily time spent engaging with radio (91.2 minutes), newspapers (26.4 minutes) and mobile (19.2). Other findings showed that television reaches nearly 90% of people 18-plus every day, better than the Internets 67.5%, radio's 60.6% and newspapers' 38.6%, and TV reaches over 80% of the general population. Taking these numbers into consideration, feel that the majority of people we reach will be through television, while a smaller percentage will be reached through out-of-home advertisements.

3. Frequency Objective - On average, how many times do you wish to reach your target in a four week period?
We wish to reach our target market eleven times in a four week period. We can do this by reaching our objective for out-of-home advertising of twenty times a month and reaching our target customers through television a possible eight times. This will make a total frequency of twenty-eight times. We think this is attainable especially with our out-of-home advertising because most people take the same route daily whether it be to work, taking the kids to school, or running errands. The out-of-home advertising will serve as a reminder and add to frequency while keeping the cost relatively lower, while the television add will be the main source to get through to the target audience. Media Strategy: The media mix we are using is television through a national ad campaign that uses a mix of network and cable channels and out-of-home advertising, more specifically billboards. The percentage of the advertising budget that will be used on T.V. is 80%. Although TV is more expensive, it bolsters the overall performance of our other media channel. The percentage of the advertising budget that will be used for the billboards is 20%. It is important to advertise on television because if a competitor increases advertising spending in a geographic region, it is important for Doritos to be able to reallocate its own media dollars to that area to blunt the attack. The Media Comparisons Study in 2010 commissioned by the Television Bureau of Advertising also shows that television is the best form of media to reach our target.
Media Scheduling Tactics: As indicated in the media plan graph below we are going to advertise in January and February due to the NBA regular season games, NFL playoffs and the Superbowl. We found it important to advertise in both the morning and midday to reach potential consumers that may be viewing these events all day. Also starting in the middle of January is American Idol broad casted through mid April. The playoffs will have the heaviest population of viewers while still reaching our target market. March brings March Madness which is the NCAA men's basketball tournament which extends to mid April. Starting in April are the NBA playoffs which is regarded as one of the top sporting events. This event goes all the way until mid June. Starting at the end of August is College Football extending through mid January. November and December brings regular season football that will create large gatherings with various age groups. Propose a Budget According to USA Today, Doritos is one of the top companies in terms of advertising budgets. That is why they can do big promotions like the super bowl. Large companies will spend anywhere between 50 and 100 million. Doritos budget will compete with other industries at $75 million. TV ads - 80%Billboards - 20%The reason for the large disparity in the percentages has to do with the disparity in costs. Television ads, especially on the networks that we wish to advertise, are significant. Among all types of media, television has the greatest ability to deliver audiences in mass, offering high reach because it can generate a huge number of impressions. Although television is costly, it is attractive because it serves up a big audience at a low cost per viewer. T.V. is one of the only kinds of media that can deliver sight, sound, and motion in a highly dramatic manner. The cost of a billboard is drastically less than television adds, but increases the frequency that consumers experience. Sales Promotion (Do both Consumer and Trade) Sales Promotion (Do both Consumer and Trade)

Consumer Sales Promotion:Our sales promotion consists of a tear-off, peel and use, instant saving bonus ticket that will be redeemed at the point of purchase for immediate savings. This is not considered an ordinary “coupon”, but will be called a “Bonus Savings Ticket”. The ticket will be designed after a game ticket.Since our target audience is ages 18-24, cut out coupons are not realistic. This age group will appreciate and use the instant savings. We feel they will actually use the peel-off bonus ticket and will help compel the consumer to buy Doritos.As it will be a considerable savings, the savings bonus will be on our regular size bags, available on all flavors. We could not financially justify using the “Bonus Savings Ticket” on the smaller snack size bags.The “Bonus Savings Ticket” offer will be an immediate savings of fifty-five cents. The size of the tear-off, peel and use ticket will be approximately 2” x 3”. The color will be a bright fluorescent color to catch the consumer’s eye. Our graphics design team will evaluate our different color bags and chose the best noticeable color. We want the ticket colors to be consistent on all bags and flavors.
Promotion of Consumer Sales Promotion: Trade Sales Promotion:

We will negotiate with the stores certain space that would be available for point of purchase displays. Our actual display will be a large metal basket filled with different flavor of chips. The size will be approximately 5.5’ x 5.5’ x 4’ deep. Because of the size, it will need to be placed near the register area. The basket will be re-stocked throughout the day with a variety of flavors. We feel that this will urge consumers to chose a new flavor to try to help promote some of our less popular or not as well known flavors. Heavy-duty cardboard signs will be attached to all sides of the metal basket. It will include the Doritos logo and will advertise the instant bonus savings. An elevated sign attached to the metal basket will give the display height and noticeable recognition. The elevated sign will present our big idea “Making Normal Life Spicier”. The sings will be two-sided for consumers to see from both directions.In addition to the point of purchase displays, promotional memorabilia will be sent to certain stores consisting of Doritos t-shirts and button pins with “Making Normal Life Spicier” will be handed out to employees to wear on their uniforms to help push the current promotions. Having the employees in the stores wearing our advertising should help give our promotional deals the extra push they need. The promotion will run consistent with our media advertising. We feel that our promotions will create a urgency for the retail stores and warehouses to increase their ordering volume. Public Relations: Publicity Doritos Brand Taking a Big Step ForwardApril 1, 2011Doritos has been around since 1964 and ever since then this brand has been growing little by little over the past fifty years. Until recently Doritos has not been so aggressive in their marketing campaign division until the competition started getting fierce. Due to the fact that the brand had not been making the same amount of revenue ever since the economy has gone south and most households have been cutting back on spending, so Doritos needed to make a drastic change. Ever since 1995 Doritos has been assertively advertising during the Super Bowl and visibly been sponsoring the World Cup, which has been a good step in marketing to a global spectrum but more needed to be done.With a new marketing team being brought together, they were able to work fast and came up with unique marketing tools to sell more products. With this new change only been done a few months ago the brand has seen a gigantic increase in sales, awareness, and accessibility. Only time can tell if this change will remain a positive one but executive of Doritos are very confident that by taking this next step it will give the brand such a constructive and optimistic future to come.I believe they will run this story because news about the economy has been such a huge topic in the news since the down fall in the marketing and people want to know how business are doing and they want to be informed in what is going on behind the scene of large fortune 400 companies. Even though this story is not a typical story that has a lot of the “juicy” details, it is still something that people want to know and be informed about. Doritos Helping to Youth to Spice up the WorldApril 2, 2011 Dallas, TXDid you think DORITOS brand just makes chips? No way. The DORITOS team is a strong advocate in the power of young people to speak out and change the world. DORITOS brand is continuing to use their bags to celebrate amazing young world changers and show that people like you can do something to spice up our world and make it a better place for everyone to live.DORITOS in conjunction with PespiCo has continued to be a proud sponsor of DoSomething.org. ‘DoSomething.org is one of the largest organizations in the U.S. that helps young people rock causes they care about. A driving force in creating a culture of volunteerism, DoSomething.org is on track to activate two million young people in 2011. By leveraging the web, television, mobile, and pop culture, DoSomething.org inspires, empowers and celebrates a generation of doers: teenagers who recognize the need to do something, believe in their ability to get it done, and then take action.’ (http://www.dosomething.org/about) DORITOS has been around since 1964 and has been growing little by little ever since. Their experience over the last 47 years has taught them how important young people are in creating a better world. DORITOS experience helps them to not only to continue to make better chips, but also make a better world. Each bag of DORITOS chips highlights an inspirational youth from around the world. Our hope is to inspire other youth to take up the challenge to do something to change the world. Find your passion and your spice for life and go out there and make things happen. DORITOS does more than just make chips; they help inspire people to create a better, ‘spicier’ world for people of all ages. So, the next time to you are inspiring you stomach with a bag of DORITOS , read the bag and find out what people just like you are doing to change the world. Be inspired and ask yourself, ‘Am I all that and a bag of chips?,’ then find out what inspires you and do something now. You could be the next inspirational story featured on your favorite bag of chips!
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