Class: MKTG 5001 - Marketing Management & Strategy
Lecturer: Dennis Paris
Prompt: Choose a large, publicly-traded company with a marketing problem that’s being covered in the media.
Company/Brand: Kraft Heinz - Smart Ones
EDIT: 9/1/20 - Fox School of Business @ Temple University connected with the Smart Ones branding team at Kraft Heinz, collected information from our professor, Dennis Paris, and a few of my group-mates to publish this write-up on the project.
[NOTE: if you don’t want to read the whole story, scroll down to the phase implementation section.]
Fifteen weeks ago, I waltzed into a classroom, sat down in the front row by the window, and waited. As people walked in, I realized I knew no one’s name except for Amanda, a girl I met at orientation who took a seat in the row behind me, Jordan (we endearingly call her “Jojo”) whom I paired up with in our Monday advertising class for an interviewing exercise, Alyssa, who sat behind me in the aforementioned Monday class, and the other Alyssa whose sharp-as-a-knife eyeliner I complimented at orientation. Oh, and the professor—Dennis.
I had met most of the other people in class at orientation or our advertising class as well, but could not remember their names. I was happy to see that our class had three men—the program most of us were in only had one man, Gary, and he sat directly behind me. Clearly, this class was a mixed box of crayons.
The groans from this mixed box of crayons was comical—it was as if we had never left undergrad. We had homework due that day—by 6pm, our class’ start time. The homework was simple, though (once we understood what exactly Dennis was asking for): choose a publicly-traded company with a marketing problem that’s being covered in the media. Take that company and write a two-page, double spaced paper on who they are and what their problem is.
When Dennis came in, he gave his intro monologue, warned us about his excessive talking and then recited the prompt. He then asked us to break ourselves up into groups of five. Jojo, Alyssa and I spun around in our chairs, looked at each other, then at Amanda and Gary and almost in unison, said “Hi, group!” We laughed at ourselves and reminded each other of our names. We created a group text thread and called it Marketing Project Group, which later was changed to The Smart Ones. Little did we know we’d become lifelong friends during this adventure.
The groups were then numbered (we were 1) and asked to go up to the board closest to us and write our team number with the list of companies we researched.
Every group in the room had at least one person research Uber except ours. We had Nintendo, L Brands, Ford, Fitbit and Kraft Heinz. Dennis walked to each list and crossed out ones he didn’t want to see, as they’ve been done several times in other projects. When he was done crossing things out, we were left with Fitbit, Kraft Heinz and L Brands.
After giving our personal speeches within our groups as to why we chose what we chose (minus Nintendo and Ford), we chose Kraft Heinz. We felt that their marketing issue would be an easy one to address and work with since both Kraft and Heinz were two insanely huge household names.
Boy were we wrong.
As a company, Kraft Heinz is considered a house of brands — that is it’s an umbrella with a massive portfolio of sub-brands underneath. Throughout the first few weeks of the semester, we ran into hurdles with such a massive brand while trying to complete both individual and team assignments directly related to our project. Eventually, through the suggestion of our professor, we narrowed it down to one of Kraft Heinz’s sub-brands: Smart Ones.
Why Smart Ones? Well, Kraft Heinz’s portfolio of brands includes very little variety and quantity when it comes to health(ier) food options. In all of our research, most analysts and reporters pointed at the fact that Kraft Heinz is not keeping up with competition or trends and is neglecting to advertise or take advantage of opportunities that will most likely keep Kraft Heinz up near the top. Instead, they continue to try and perfect their flagship ketchup and macaroni and cheese products. Our quantitative and qualitative results had consumers complaining that frozen meals taste horrible, are loaded with sodium and aren’t worth the money. Our goal was to prove those ideas wrong through specific strategic implications.
Cover page for our midterm report.
For our midterm, we were told that Word (.doc) is the format of choice. So, we grabbed all of our results, extracted the data and insights we needed, peppered in some research findings from secondary sources and gave our presentation. You can read and SEE it here.
We scored a 98/100 on it, losing a point for having too many primary segments (oops!) and another for not visually connecting our implementations to our research (basically, we didn’t have enough charts/graphs/maps). However, Dennis was quite impressed with the visual presentation of our report, citing that it’s very professional and easy to look at!
The cover page is the cherry on top. The idea was to make it look like the current Smart Ones boxes, with little things changed to include important information like our names, the course info and the number of results our initial survey gathered (670 complete responses). We made sure to add the Kraft Heinz logo at the bottom to remind everyone who our original company was.
Soon after the midterm was over, though, we needed to reconvene and begin working on the final. Sounds crazy, but when you only have seven weeks to create a full marketing plan complete with projections and forecasts, you make sure you use every bit of it!
In those seven weeks, magic happened. Of course, we needed some help from our friends, Caffeine and Determination, but we were able to do it. We also helped each other get through everything—tears, sweat, swearing, thoughts of dropping out. It was like a really corny graduate school telenovela.
We conducted another survey to see what people would think about our strategic implementations. We didn’t push as hard this time, so we only pulled in a fraction of the responses as last time, but we still exceeded the minimum and had a lot of good data to go through. We found what people liked and didn’t and what they expect from the things they buy. We also got insight on which of our ideas people would be interested in, and from that we began building the structure for our implementations.
But something stuck in my head from the midterm. Dennis wanted visual connections. Even though I know he meant more perceptual maps, bar graphs, pie charts, wire graphs, etc. I wanted to take it a step further. As a graphic designer, I needed to use my skill and make this the best project I could for my team. Of course, the main way to do that is to, you know, actually do the work and get the meat onto the bones. But what’s a dog without its fur? Or, in this case, a frozen meal without its box?
Visual. A word that stuck with me that whole second half of the semester. In our notes, we wrote “More perceptual maps”. I was leaving that to Gary—he seemed to like making them. But I suggested we design the box we’re talking about. This way, we can not only talk about the re-categorization of the meals, but we can show it. People will better understand the concept with things they can see that are being described aloud or in the reading.
It didn’t stop at boxes. I designed coupons for our on-the-box promotions and handouts during the in-store sampling events we proposed. Posters were designed, window clings were produced and we even thought about printing the cooking instructions on the plastic film for the variety packs people would love. No box? No problem! Thankfully, I was able to make this happen while chipping in ideas for my group mates to mull over and enhance with their own. We were a force to be reckoned with in this project and we knew it.
Each category of frozen meal was granted their own identity using colors and imagery. Smart Ones was already doing that, but using cuisine as their model. Truth is—no one cares that the meal is Italian-inspired. They care if it’s good for you and tastes good—something our new boxes would help identify.
Between all of our texts, group calls and individual working time, my guess is that we spent no less than 80 hours on this project on the second half of the semester. It sounds crazy, but here’s a little math to back that up: each of our calls together were no less than three to four hours. We had no less than two of these calls a week and no more than three. That means we spent anywhere between six and twelve hours each week working on it. Multiply that by seven and you get 42 to 84 hours put in. But remember— this doesn’t include our group texts and individual working time.
By myself, I probably put in no less than 50 hours (and $150 in ink and other supplies) to design, finalize, print, and assemble these prototypes, as well as do my portion of the research, paper, Powerpoint and help any of my group-mates with whatever they needed. This was an important project (not just because it was for school), but because we wanted to continue to blow it out of the water.
We were—we are—very proud of the final products—the report included. Dennis and his academic pal, Sean (from Housing—long story), quite enjoyed our display and honestly? So did we. There was an attempt (a nice one, too, thank you Dennis!) to get someone, anyone, from Kraft Heinz to come to our presentation. However, they declined to respond to Dennis’ emails and he jokingly told us they were one email away from filing a formal complaint with the university. (Please don’t.) I guess they were too busy counting their new ketchup packets and tasting their Mac and Cheese sauce to be bothered.
All of our hard work and long hours paid off: we presented without a hitch (well, we sped through the presentation because we only had 15 minutes for 21 slides) and people loved our physical elements! (Well, some people in the class looked annoyed with us, too, but that’s OK.) The next day we received our grades - 91% for the written report and 100% for the presentation. We felt great—a weight off of our shoulders and pride beaming through us all.
If you’d like to take a look at our final report, click here. If you want to browse our Powerpoint presentation, click here. Below I’ll go through the phases of implementation, the meat of the presentation! Portions of the paper for each section will be included. Each photo below can be enlarged for viewing pleasure and will appear in a lightbox format.
The cover slide of our presentation is projected onto the screen.
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Phases of Implementation
Phase 1: On-the-box Coupons
The first part of our brand re-design is an event that leads up to the launch of what we call the “Smarter Box campaign”. In this initial campaign, coupons will be placed on current Smart Ones boxes, allowing customers to save money on the meals. Each coupon will also serve as a counter for us to see which meals do best and which meals may need improvisation or discontinuation in the future. Each coupon placed will be of a specific color that relates to that meal’s new categorization as mentioned above.
The coupon that will appear on current Smart Ones boxes to kick off the Smarter campaign.
Leading up to the launch of the Smarter Box campaign, coupons will be placed on current Smart Ones boxes. These coupons will begin in July 2020 and continue through November.
Our initial run of 50 cent coupons will be 40,000 units, totaling ls 10,000 coupons for each of our 4 future product lines. We will launch these coupons at 50 Acme, Weis and ShopRite stores in the Philadelphia Metropolitan Area. Each store will receive 800 coupons over the course of the July-November timeframe. Based on sales figures after the first 3 months of the tactic, we can evaluate if we need to supply more coupons to our retailers and make necessary adjustments to inventory for the Smarter Box launch set for January 2021.
Smart Ones single-serving and variety pack boxes
Phase 2: Smarter Box & Variety Pack Launch
With the Smarter Box launch, customers will see redesigned packaging for the meals, straying far away from the traditional red swoop at the top to a box that fully embraces a color chosen for each new categorization. The current categories, divided by cuisine, are as follows: American (blue), Italian (green), Mexican (orange, and Asian (purple). Our proposed divisions are: Low-Calorie Creations (light blue), Vegetarian Delights (green), Protein Packers (golden-yellow), and Healthy Hearts (red). By following this new grouping, we open the door for not only Smart Ones, but Kraft Heinz, to rethink their offerings and give them a chance to hop on the health trend bandwagon.
An idea we had that doesn’t seem to exist with Smart Ones, let alone the key competitors we researched (Healthy Choice, Lean Cuisine, and Amy’s), is variety packs. Not to be confused with multipacks, which do exist in small quantities in very few retail spaces, variety packs, first offered in three-meal boxes, will make it easier for consumers to try different varieties of Smart Ones meals while still keeping within budget. Smart Ones meals are lower on the pricing scale, beating out its competitors in product cost across the board at most points of sale.
Included in the variety boxes are trays that have the cooking instructions printed on the film, keeping in mind that boxes may be larger than usual to fit in the freezers, so purchasers may remove them for a better fit and/or to bring to work/school/wherever for easy transport.
Cooking instructions are printed on the tray film
Should the variety packs prove to be successful (qualitative research we conducted showed people would be interested in buying variety packs), there will be launches of new ones that may mix categories to create a specific flavor profile (“Smarter Day”) and include five meals (“Smarter Week”) rather than three.
Starting in December 2020, in accordance with the holiday season and the New Year, we will launch the Smarter Box campaign. We will initially launch the rebrand in all 50 grocery stores we previously offered coupons in during Phase 1 of the campaign, and in 25 Target and 25 Walmart stores in the Philadelphia Area.
Also In December, each store carrying the new Smart Ones boxes will receive signage and promotional items to accompany the new product look, these include freezer clings, highlighting the new product packaging.
All 100 stores will receive an inventory of Smarter Boxes based on the sales of products sold in the preliminary coupon campaign. The launch of the campaign will be measured and monitored during the December-February launch campaign, through coupon tracking validation and sampling booth coupons.
Phase 3: In-Store Sampling
The last stretch of our local test market launch is to indulge in some in-store sampling. Tables will be set up in select stores during 18 weekend days over three months to promote the brand in all its colorful glory. Our research showed that the negative perception of frozen meals in general is that they taste horrible (in addition to being bad for you). By offering samples, we hope to change consumers’ minds on the flavor as well as give them an opportunity to see what Smart Ones now offers.
In addition to a free snack, store patrons will be given a coupon that’s good for $0.50 ($1.00 for variety packs) off any variety of a Smart Ones frozen meal in the category that was sampled that day. For example, if a Heart Healthy meal option was sampled, the coupons that day will be valid for savings on a Heart Healthy meal.
At the tables, with the coupons, will be posters (see below) designed specifically to match the box in color with witty sayings to capture attention and to allow people to begin making correlations.
Our final market test phase is in-store sampling of Smart Ones healthy alternatives. The goal of this phase is to engage customers, gain customer loyalty, and eliminate the stereotype in customers’ minds of the product tasting unpleasant. We hope that the in-person customer engagement will build rapport with our target audience and educate them on the products we offer and their ingredients, especially our new healthy product line.
This tactic is easily replicated for seasonal promotions after the launch of the initial Smarter Box New Year campaign. For example, during back-to-school season, promotional coupons and messaging can be focused on busy school schedules and dinner planning.
These sampling booths will be highly branded based on which meals the sampler is serving. We will create posters, accompanying collateral for each line of Smart Ones sampled, so that each interaction at our sampling booths are in line with the Smarter Box campaign.
Parallel to the aforementioned events, the manufacturer’s coupons will be run and distributed by the demonstrators at the sampling tables. Each set of coupons correlate with the proposed meal categories and will be good for those specific categories, allowing us to obtain a victory with this tactic. The coupons will also allow us to track sales that are directly influenced by the sampling event.
Phase 4: Nationwide Launch
When the GPA (Greater Philadelphia Area) test launch proves to be successful, Smart Ones will then prepare to go into a full, nationwide launch of the rebrand.
Upon success of the previous phases in the Philadelphia area, we will commence phase 4, a nationwide launch of the Smarter Box and variety pack campaign. The same processes used in phases 1–3 will be employed, essentially rolling out the rebrand. The goal for this final phase is to have a net worth of $50 million in sales (annual) and a stronger brand awareness for Smart Ones’. This will hopefully encourage Kraft Heinz to keep up with the competition.
The goal of $50 million annually was inspired by Lean Cuisine and how they, through a package redesign and successful campaigning, were able to pull in $58 million in one year. That article can be read here. Though $58 million would be better, we understand that because Smart Ones sits so low on the chain right now, aiming too high might be foolish and unattainable. Our primary goal is to create brand awareness, encourage customers to engage with the brand through trial and savings and let the product do the rest of the work.
Eventually, there will be other forms of advertisement, such as commercials and web ads (below) that bring users to a redesigned Eat Your Best website that focuses mainly on Smart Ones (but will not drop SmartMade or Indulgence from its lineup) where they can download a coupon for mobile display or printing.
Ad placed on FoodNetwork.com
Strategically placed ad on AllRecipes.com—good for those who give up on finding a recipe or think they’re too complicated. (Convenience.)
Ad placed on YouTube, visible when users watch videos related to food or lifestyle. (Shown: Grace Booth//Grackle, UK YouTuber)
All in all, although this semester with the project was trying, and sleep was a much appreciated treat when it was all over, it was very rewarding. Not only did all of us do well on the project and in the class, but we all bonded, became close and still talk without skipping a beat despite the class being over for one whole week already. In fact, we’re discussing what our group thread should be for next semester, as we’re all in the same two classes. The hope is that we get to work together again in some capacity; though if we don’t, at least we know we have each other to rant, rave and get opinions. Oh, and to go out and get fries from European Republic and sit outside of the Museum of the American Revolution after class at 10pm, eating said fries and shooting the wind.
Jokingly, we talk about opening a marketing agency together. Who knows—maybe it’ll be an integral part in my business partner’s and my plan in the future.
I do need to say something about Dennis in this post. Although there were times where we didn’t agree with Dennis in his practice or ideas, we all came to a consensus that he’s a great guy, full of opinions, assistance and nothing but best wishes for his students. He knows the work is hard, but he expects the class to work harder—which is what we tried to do. So Dennis, if you happen to be reading this, and made it this far, thank you.
P.S. They’re not quizzes. They’re tests. (lol) •