SlideShare une entreprise Scribd logo
1  sur  17
Télécharger pour lire hors ligne
The 4 th  “P”: Driving CPG Marketing Arnie Strub, mba Entrepreneur-in-Residence DeGroote School of Business [email_address] Office Hours: Thurs. 12.30-14.30 DSB227
CPG innovation is Marketing Driven New Brand Development: Product>Price>Promotion>Place Existing Brand Development:  Often driven by Distribution (Place) Place>Product>Price>Promotion
Strub's Business in Canada 70% R E T A I L <<< 30% Food Service >>>
The Retail Pickle Market Size: $120million (at retail) in Canada 90% Shelf Stable (SSP), 10% Refrigerated (ARP) Ontario Brand Leaders: #1 Bick's=45% share (all SSP),  #2 Strub's=7.5% share (all ARP) All Private Label 30% share
Who Eats Pickles?  (demographics) Show of Hands: Jar in Fridge?  Eat at Restaurant? Jars of pickles are mainly purchased by Households of 3 or more people, where the head of the HH is 35+ yrs old. 70% HH penetration in Canada Missing the younger audience at Retail.
Purchase Patterns  (behavioural) Average Purchase Frequency:  4x / year Sales are highly seasonal Two Peaks seasons:  May / June (BBQ) Nov / Dec (Holidays)
Sales Opportunities for Strub's Geographic Segmentation Increase Sales by increasing Distribution to regions of North America not yet serviced. Options: U.S.A. Quebec Canada West
Pros / Cons by Segment U.S.A.+: close, large market size, higher ARP% U.S.A. -: DSD, brand unknown, compn high Que +: close, known brand, good market size Que  -: low ARP%, DSD, compn high West +: known brand, WH delivery,  compn low, good market size West  -: far (shipping cost), low ARP%
Focus on  Canada West Segment Items to Manage: Wholesale Selling Price  (freight factors) Retail Price Point vs. Competition Internal Objectives: Maintain Profit Margins Keep Retail Price Reasonable
Target Wholesale Customers Safeway all western provinces Overwaitea BC and Alberta
Overwaitea Obstacles Best Selling 1L Jar Retail Price 25% TOO HIGH! Wholesale cost inflated due to  high cost of shipping. Bringing Price Down would make  Sales Efforts Unprofitable
Safeway Obstacles Best Selling 1L Jar TOO TALL Meat Dep't. Shelves stacked tighter Even so, Retail Price still too High Due to additional Freight costs
Distribution  (“P”lace)  Strategy Drives the Marketing Effort to Success ,[object Object],[object Object],[object Object]
Solution: Launch a New, Smaller Jar Size of the #1 Selling Flavour Profile ,[object Object],[object Object],[object Object],[object Object],[object Object]
Price per Unit is  STRONGER  than Price per Litre in the absence of direct comparisons $  3. 9  9  1L Jar  750mL Jar
Achieving Price Points is important in Driving Sales, especially with direct comaprisons 1.99  /  1.49 Still 50cent difference 1.49  /  .99 2L Bottle  1L Bottle Show of Hands to purchase 1L at these price points
Thank You Questions & Answer Session

Contenu connexe

En vedette (11)

Welcome To Keenan
Welcome To KeenanWelcome To Keenan
Welcome To Keenan
 
Final Two Ideas
Final Two IdeasFinal Two Ideas
Final Two Ideas
 
Uma nova era
Uma nova eraUma nova era
Uma nova era
 
Tendências e tecnologia
Tendências e tecnologiaTendências e tecnologia
Tendências e tecnologia
 
Duchy Originals Sustainable Journey
Duchy Originals Sustainable JourneyDuchy Originals Sustainable Journey
Duchy Originals Sustainable Journey
 
Tom de voz
Tom de vozTom de voz
Tom de voz
 
Sustainability And The Food Industry
Sustainability And The Food IndustrySustainability And The Food Industry
Sustainability And The Food Industry
 
Udazkena
UdazkenaUdazkena
Udazkena
 
Arratoiaren Lasterketa
Arratoiaren  LasterketaArratoiaren  Lasterketa
Arratoiaren Lasterketa
 
Bloga Aurkezten
Bloga AurkeztenBloga Aurkezten
Bloga Aurkezten
 
Nova Presentacio Rrll
Nova Presentacio RrllNova Presentacio Rrll
Nova Presentacio Rrll
 

Similaire à The Fourth &quot;P&quot; Driving CPG Marketing

iberry Final Report
iberry Final Reportiberry Final Report
iberry Final Reportglenferry
 
Reliance Baking Soda: Optimizing Promotional Spending (HBR Brief Case)
Reliance Baking Soda: Optimizing Promotional Spending (HBR Brief Case)Reliance Baking Soda: Optimizing Promotional Spending (HBR Brief Case)
Reliance Baking Soda: Optimizing Promotional Spending (HBR Brief Case)Siddharth Barjatya
 
Launching Krispy Natural: Cracking the Product Management Code
Launching Krispy Natural: Cracking the Product Management CodeLaunching Krispy Natural: Cracking the Product Management Code
Launching Krispy Natural: Cracking the Product Management CodeFarhan Hayat
 
Capstone board presentation mba ( michael toney , mike toney )
Capstone board presentation mba ( michael toney , mike toney )Capstone board presentation mba ( michael toney , mike toney )
Capstone board presentation mba ( michael toney , mike toney )Mike Toney, MBA
 
Patagonia Provisions presentation
Patagonia Provisions presentation Patagonia Provisions presentation
Patagonia Provisions presentation Jacqueline Trouveroy
 
Popularity of dairy food in international market (2)
Popularity of dairy food in international market (2)Popularity of dairy food in international market (2)
Popularity of dairy food in international market (2)smkaiser15
 
Launching Krispy Natural: Cracking the Product Management Code
Launching Krispy Natural: Cracking the Product Management CodeLaunching Krispy Natural: Cracking the Product Management Code
Launching Krispy Natural: Cracking the Product Management CodeSaurabh Singh
 
Launching Krispy Natural: Cracking the Product Management Code
Launching Krispy Natural: Cracking the Product Management CodeLaunching Krispy Natural: Cracking the Product Management Code
Launching Krispy Natural: Cracking the Product Management CodeKshitij Chaudhari
 
Higgins,Stephen_UniversalResume
Higgins,Stephen_UniversalResumeHiggins,Stephen_UniversalResume
Higgins,Stephen_UniversalResumeStephen Higgins
 
"Brunch a-go-go" UCBX New Product Development
"Brunch a-go-go" UCBX New Product Development"Brunch a-go-go" UCBX New Product Development
"Brunch a-go-go" UCBX New Product Developmenthbencheva
 
Natureview Farm - Harvard Case Study Analysis
Natureview Farm - Harvard Case Study AnalysisNatureview Farm - Harvard Case Study Analysis
Natureview Farm - Harvard Case Study AnalysisAkshay Pandey
 
Baskin Robbins Global Marketing
Baskin Robbins Global MarketingBaskin Robbins Global Marketing
Baskin Robbins Global Marketingmayankl jain
 

Similaire à The Fourth &quot;P&quot; Driving CPG Marketing (20)

Natureview Farm
Natureview FarmNatureview Farm
Natureview Farm
 
Tomato sherpa detailed deck
Tomato sherpa detailed deckTomato sherpa detailed deck
Tomato sherpa detailed deck
 
kRISPY Natural
kRISPY NaturalkRISPY Natural
kRISPY Natural
 
iberry Final Report
iberry Final Reportiberry Final Report
iberry Final Report
 
Reliance Baking Soda: Optimizing Promotional Spending (HBR Brief Case)
Reliance Baking Soda: Optimizing Promotional Spending (HBR Brief Case)Reliance Baking Soda: Optimizing Promotional Spending (HBR Brief Case)
Reliance Baking Soda: Optimizing Promotional Spending (HBR Brief Case)
 
Natureview farm
Natureview farmNatureview farm
Natureview farm
 
Krispy natural
Krispy naturalKrispy natural
Krispy natural
 
Launching Krispy Natural: Cracking the Product Management Code
Launching Krispy Natural: Cracking the Product Management CodeLaunching Krispy Natural: Cracking the Product Management Code
Launching Krispy Natural: Cracking the Product Management Code
 
Nature view
Nature viewNature view
Nature view
 
Capstone board presentation mba ( michael toney , mike toney )
Capstone board presentation mba ( michael toney , mike toney )Capstone board presentation mba ( michael toney , mike toney )
Capstone board presentation mba ( michael toney , mike toney )
 
Patagonia Provisions presentation
Patagonia Provisions presentation Patagonia Provisions presentation
Patagonia Provisions presentation
 
Popularity of dairy food in international market (2)
Popularity of dairy food in international market (2)Popularity of dairy food in international market (2)
Popularity of dairy food in international market (2)
 
Launching Krispy Natural: Cracking the Product Management Code
Launching Krispy Natural: Cracking the Product Management CodeLaunching Krispy Natural: Cracking the Product Management Code
Launching Krispy Natural: Cracking the Product Management Code
 
Launching Krispy Natural: Cracking the Product Management Code
Launching Krispy Natural: Cracking the Product Management CodeLaunching Krispy Natural: Cracking the Product Management Code
Launching Krispy Natural: Cracking the Product Management Code
 
Natureview
NatureviewNatureview
Natureview
 
Higgins,Stephen_UniversalResume
Higgins,Stephen_UniversalResumeHiggins,Stephen_UniversalResume
Higgins,Stephen_UniversalResume
 
Puglia 2015
Puglia 2015Puglia 2015
Puglia 2015
 
"Brunch a-go-go" UCBX New Product Development
"Brunch a-go-go" UCBX New Product Development"Brunch a-go-go" UCBX New Product Development
"Brunch a-go-go" UCBX New Product Development
 
Natureview Farm - Harvard Case Study Analysis
Natureview Farm - Harvard Case Study AnalysisNatureview Farm - Harvard Case Study Analysis
Natureview Farm - Harvard Case Study Analysis
 
Baskin Robbins Global Marketing
Baskin Robbins Global MarketingBaskin Robbins Global Marketing
Baskin Robbins Global Marketing
 

The Fourth &quot;P&quot; Driving CPG Marketing

  • 1. The 4 th “P”: Driving CPG Marketing Arnie Strub, mba Entrepreneur-in-Residence DeGroote School of Business [email_address] Office Hours: Thurs. 12.30-14.30 DSB227
  • 2. CPG innovation is Marketing Driven New Brand Development: Product>Price>Promotion>Place Existing Brand Development: Often driven by Distribution (Place) Place>Product>Price>Promotion
  • 3. Strub's Business in Canada 70% R E T A I L <<< 30% Food Service >>>
  • 4. The Retail Pickle Market Size: $120million (at retail) in Canada 90% Shelf Stable (SSP), 10% Refrigerated (ARP) Ontario Brand Leaders: #1 Bick's=45% share (all SSP), #2 Strub's=7.5% share (all ARP) All Private Label 30% share
  • 5. Who Eats Pickles? (demographics) Show of Hands: Jar in Fridge? Eat at Restaurant? Jars of pickles are mainly purchased by Households of 3 or more people, where the head of the HH is 35+ yrs old. 70% HH penetration in Canada Missing the younger audience at Retail.
  • 6. Purchase Patterns (behavioural) Average Purchase Frequency: 4x / year Sales are highly seasonal Two Peaks seasons: May / June (BBQ) Nov / Dec (Holidays)
  • 7. Sales Opportunities for Strub's Geographic Segmentation Increase Sales by increasing Distribution to regions of North America not yet serviced. Options: U.S.A. Quebec Canada West
  • 8. Pros / Cons by Segment U.S.A.+: close, large market size, higher ARP% U.S.A. -: DSD, brand unknown, compn high Que +: close, known brand, good market size Que -: low ARP%, DSD, compn high West +: known brand, WH delivery, compn low, good market size West -: far (shipping cost), low ARP%
  • 9. Focus on Canada West Segment Items to Manage: Wholesale Selling Price (freight factors) Retail Price Point vs. Competition Internal Objectives: Maintain Profit Margins Keep Retail Price Reasonable
  • 10. Target Wholesale Customers Safeway all western provinces Overwaitea BC and Alberta
  • 11. Overwaitea Obstacles Best Selling 1L Jar Retail Price 25% TOO HIGH! Wholesale cost inflated due to high cost of shipping. Bringing Price Down would make Sales Efforts Unprofitable
  • 12. Safeway Obstacles Best Selling 1L Jar TOO TALL Meat Dep't. Shelves stacked tighter Even so, Retail Price still too High Due to additional Freight costs
  • 13.
  • 14.
  • 15. Price per Unit is STRONGER than Price per Litre in the absence of direct comparisons $ 3. 9 9 1L Jar 750mL Jar
  • 16. Achieving Price Points is important in Driving Sales, especially with direct comaprisons 1.99 / 1.49 Still 50cent difference 1.49 / .99 2L Bottle 1L Bottle Show of Hands to purchase 1L at these price points
  • 17. Thank You Questions & Answer Session