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Orange Juice Stimulus Plan Presented to the Florida Citrus Commission January 21, 2009 Florida Orange-Juice Availability, Movement and Inventory 3 Florida Orange-Juice Availability, Movement and Inventory Changes Necessary to Reduce Expected Carry-out 3

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orange juice stimulus plan

Orange Juice Stimulus Plan

Presented to the Florida Citrus CommissionJanuary 21, 2009

slide3

Florida Orange-Juice Availability, Movement and Inventory

Changes Necessary to Reduce Expected Carry-out

3

slide8

Top 3 NFC – Price per Gallon

*Regular Price = Non-Promo Price. Promo Price = Price with All Promos (including TPR).

Source: Nielsen Homescan (Walmart) and Scanning Data (Grocery) through 12/20/08.

slide9

Top 3 Recon – Price per Gallon

*Regular Price = Non-Promo Price. Promo Price = Price with All Promos (including TPR).

Source: Nielsen Homescan (Walmart) and Scanning Data (Grocery) through 12/20/08.

slide10

Private Label Recon – Price per Gallon

*Regular Price = Non-Promo Price. Promo Price = Price with All Promos (including TPR).

Source: Nielsen Homescan (Walmart) and Scanning Data (Grocery) through 12/20/08.

trend report consumer awareness attitudes regarding orange juice pricing

Trend Report: Consumer Awareness/Attitudes Regarding Orange Juice Pricing

Presented to the Florida Citrus Commission

January 21, 2009

background
Background
  • Research Objective
    • FDOC Staff/Agencies implemented research study to
      • Measure economic affect on purchase behavior
      • Gauge value perception of orange juice
background15
Background
  • Methodology
    • National quantitative
    • Via Opinion Dynamics
    • Sample (N) = 500
    • Timing – Dec 08/Jan 09
awareness of price changes
Awareness of Price Changes
  • Awareness of Food Prices
    • 90% of respondents noticed an increase in food prices at grocery
  • Awareness of Citrus Prices
    • Aided, only 47% of respondents noticed an increase in orange juice prices
awareness of price changes18
Awareness of Price Changes
  • Awareness of Food Prices
    • 90% of respondents noticed an increase in food prices at grocery
  • Awareness of Citrus Prices
    • Aided, only 47% of respondents noticed an increase in orange juice prices
  • Key Takeaways
    • Consumer perception of orange juice prices may be affected by overall food increases
impact of price changes
Impact of Price Changes
  • Behavioral Changes
    • The 47% who noticed an increase in the price of orange juice are taking steps to deal with it
impact of price changes20
Impact of Price Changes
  • Behavioral Changes
    • The 47% who noticed an increase in the price of orange juice are taking steps to deal with it
      • I am looking for store deals/promotions 27%
      • I am buying store brands 16%
      • I am buying less orange juice 14%
      • I am shopping at super centers 10%
impact of price changes21
Impact of Price Changes
  • Behavioral Changes
    • The 47% who have noticed an increase in the price of OJ are taking steps to deal with it
      • I am looking for store deals/promotions 27%
      • I am buying store brands 16%
      • I am buying less orange juice 14%
      • I am shopping at super centers 10%
  • Key Takeaways
    • Sustaining promotional activity is critical
    • Retailers and consumers alike have a renewed focus on private label
impact on purchase intent
Impact on Purchase Intent
  • Impact of economy on orange juice purchase
    • 69% report no change
      • Maintaining buying rate
impact on purchase intent23
Impact on Purchase Intent
  • Impact of economy on orange juice purchase
    • 69% report no change
      • Maintaining buying rate
  • Key reasons for continuing to buy orange juice
    • Nutritious and healthy beverage 38%
    • One simple thing to stay healthy 19%
    • Refreshing 10%
    • Good for quick energy 02%
impact on purchase intent24
Impact on Purchase Intent

57%

  • Impact of economy on orange juice purchase
    • 69% report no change
      • Maintaining buying rate
  • Key reasons for continuing to buy orange juice
    • Nutritious and healthy beverage 38%
    • One simple thing to stay healthy 19%
    • Refreshing 10%
    • Good for quick energy 02%
  • Top two drivers are key elements of the DOC message strategy
perceived value
Perceived Value
  • Which one of the following beverages do you feel is the best value for the money?
    • Orange juice noted as the best value for the money
    • Apple followed orange juice
    • Cranberry and Grape were third and fourth, respectively
next steps
Next Steps

Continue to track actual/perceived impact of price and the economic environment on consumer buying behavior

Leverage integrated marketing programs to underscore the value of OJ

slide28

Run Origami Optimizer

How should an additional $5m be invested?What will it pay back to growers?

2008-09 base grower benefit is $46.8m

2008-09 base spend is $12.9m

2008-09 base demand generated is 80m SSEG

2008-09 base BCR is 3.6

slide29

Set Constraints

Stimulus spend level +$5m vs. 2008-09 base

Allocate stimulus spend to maximize grower impact

slide30

Return to Optimizer Home

Constrain non-TV spending increases to reflect strategic fit and limits on scale

slide31

Result: +39% spend, +26% demand and +27% grower impact

Run Optimizer

Expand to see optimal allocation

slide32

$5m stimulus generates grower benefit of $12.4m… BCR is 2.49

Stimulus generates demand of 21m SSEG

Optimal allocation of $5m stimulus

slide33

Orange Juice Stimulus Plan Program Recommendation

“The most successful people are those who are good at Plan B." James Yorke

Domestic Marketing Team

slide34

Current Orange Juice Marketing Programs

08-09 Media & Program Budget$14,015,726

orange juice stimulus plan35
Orange Juice Stimulus Plan

Objective

Accelerate orange juice movement to relieve excess inventory

Priorities

Immediate focus on April – September

Television

Restore April/May/June

Strengthen July/August/September

Increase presence at retail

Flexibility

‘Back end’ of the plan

Approximately $2 million

Budget

Approximately $7,000,000

considerations
Considerations

ShelfVision

ShelfTalk

Shelf TakeOne

Freezer ShelfTalk

FloorTalk

Carts

Cinema

Television

Public Relations

FSI

Sunday magazines

Parade, American Profile

Coupons

Walmart.com

Walmart TV

In store radio

LifeClinic

Brochures

PR/retail joint programs

Online

television
Television

AMJ

Commit additional $2,785,124

Incremental/Total TRPs: 465/813

New Reach & Frequency: 80%/10.2x

JAS

Commit additional $765,000

Incremental/New Total TRPs: 145/848

Reach & Frequency: 80%/10.6x

Near historic levels

Real stimulus, weights not scene since 04-05

National buy

walmart television targeted retail
Walmart TelevisionTargeted Retail

All WMSC stores – 2450

Nielsen monitored

2 flights – March and August

Spring holidays

Back to school

12-15 flatscreen televisions per store

Dairy/Produce

One hour loop

5 - :30s or 10 - :15s

Modify current spot. Use Selleck voiceover.

Impressions: 71 million/month

walmart com targeted retail
Walmart.comTargeted Retail

Lots of traffic

35/40 million visitors/month

April - September

AMJ

Banner ads over entire site

Product page content (integrate with key messages)

JAS

Banner ads

Product page content

Video

Walmart Wire – Push email newsletter

9,000,000 distribution

Custom content

in store radio targeted retail
In Store RadioTargeted Retail

2 flights – March and August

Spring holidays

Back to school

11,000 stores

A&P, Pathmark, Kroger, Safeway, Winn Dixie, Meijer, Albertsons, Ingles, SweetBay, Wegmanns, Shoprite, etc.

Expands retailer reach

2 – :30s per hour

Selleck voiceover

Impressions: 720 million/month

lifeclinic targeted retail
LifeClinicTargeted Retail

Blood pressure machines

Tested and proven

WMSC test v control = +28% lift

4 flights – April thru August

6,400 stores

All WMSC, all current FDOC call list

Secondary location in pharmacy

Custom message

Panel plus take ones with orange juice message

Refresh look and messages

Complements FDOC brochures in dairy/refrigerated areas

orange juice brochures targeted retail
Orange Juice BrochuresTargeted Retail

4 flights – April thru August

Complements blood pressure machines in pharmacy

Custom messages

Cold & flu, heart health, general health

Refresh look and messages

Target 6,400 stores

All WMSC, all current FDOC call list

slide44

Stimulus Flowchart Incremental Orange Juice Programs

Incremental Spend - $7,059,283 New Program Budget - $21,075,009

next steps46
Next Steps
  • Complete message testing
    • Identify top performing health and wellness copy points using all elements of the marketing mix
      • Importance, believability and motivation
      • Results in January 2009
      • Script development in February 2009