Pik-NikMarketing Plan

IntroductionSummary of Data Provided

Pik-Nik is an all-American snack that has been in the market for over 70 years now.

It is the No. 1 Potato stick brand in the USA.

It is the No. 1 worldwide exporter of Potato sticks.

Pik-Nik’s plant facilities are in San Jose, California

INTRODUCTION

Pik-Nik Available Locations

United States Canada Philippines Iceland Korea Latvia Taiwan Aruba Thailand Curacao Malaysia Bonaire Singapore Costa Rica India Kuwait China Saudi Arabia

PIK-NIK IN THE PHILIPPINES

Snack Foods Category◦ Industry

Potato based Corn based Flour based

◦ Sub-category: All Natural Extruded Processed

Pik-Nik is an all natural potato snacks, made using only fresh potatoes, pure vegetable oil and other seasonings.

100% no preservatives

Statement of the Problem

Goal: For Pik-Nik to be the No. 1 in the Imported Snack market in the Philippines.

Problem: How can we make Pik-Nik the top of mind choice for consumers in its target market without changing its product offering?◦ Low control over product since internationally

sourced

The Goal and The Problem

Market Research

Pik-Nik Pringles Frito-Lay Oishi

Digital Scan (In a Nutshell)

Pik-Nik◦ Has an International Website

No engagement Not updated

◦ No local Website◦ No Official Facebook Page◦ Has an inactive fan-generated Facebook Page

(3,345 fans)

Digital Brand Health Scan

Pik-Nik◦ No Official International or Local Twitter Page◦ No Youtube Channel◦ No Forums talking about Pik-Nik◦ Low SEO score in Google Search

Keywords: “Piknik; Pik-Nik”◦ Good local feedback thru social media (Facebook

& Twitter)

Digital Brand Health Scan

Pringles◦ Has an active international Website and Microsite

Good promotional activities User-Friendly Site

◦ Has 17,600,627 (As of Feb. 8, 2012) fans in its Official International Facebook Page

◦ Has a number of ACTIVE unofficial international Fan Pages (Total fans amount to approximately 2 million)

◦ Has 5,565 followers in its active international Twitter account

◦ Great Score in SEO Google Search Keyword “Pringles”

◦ Inactive International Youtube Channel (370 Subscribers)

Competitive Scan

Pringles◦ No local website◦ No local official Facebook page◦ No local fan-generated Facebook page◦ No local Twitter ◦ Great Positive Feedback from Social Media locally

and internationally.

Competitive Scan

Frito Lay

Competitive Scan

Frito Lay

Competitive Scan

Oishi◦ Has a local website◦ Has an active local Facebook fan page

Competitive Scan

Oishi

Competitive Scan

There is a big opportunity for Pik-Nik to grab market shares through the internet since local direct competitors of Pik-Nik have not yet started using online mediums to reach their target market.

Pringles might have a different approach now since it has been divested by P&G to Diamond Foods.

Only Frito Lay has had a successful viral campaign, but it was international.

Digital Scan Takeaways

30 respondents via Google Docs online survey Aged 19-27 respondents from various

backgrounds and occupations 13 male respondents, 17 female respondents

Survey

URL: http://bit.ly/Ae98tJ Who buys snacks in your place MOST OFTEN? Where do you buy your snacks the most? How often do you eat snacks? What are your top three choices of snacks to buy [in order of preference]?

(Brand Names) Why do you buy snacks? (Score with 1 as lowest and 5 as highest, scores can

be repeated) ◦ Tastiness◦ Low Price◦ Brand Name◦ Uniqueness (It is one of a kind)◦ Health Benefits]◦ For a specific occasion (Party, etc.)◦ Easy to bring around (Pocket size)

How often does "Person who buys your snacks" purchase snacks? What is your personal reason for buying/eating snacks? Explain if needed.

Survey Questions

Who buys snacks in your place MOST OFTEN? (Multiple Choice)◦ Many of the respondents buy snacks themselves (12 parents,

18 themselves) Where do you buy your snacks the most? (Multiple

Choice)◦ Top three are Supermarkets, Convenience Stores, and

Wholesale Stores (S&R, ShopWise, etc.) What are your top three choices of snacks to buy?

(Brand Names) ◦ Top three most chosen are Jack&Jill Products, Frito Lay

Products, and other indirect competitors (Fruits, Chocolates, etc.)

Survey Questions

Why do you buy snacks? (Score with 1 as lowest and 5 as highest, scores can be repeated)

Survey Results

What is your personal reason for buying/eating snacks? Explain if needed.◦ Common Responses (Most common to least common)

Comfort food, Stress Relief, Break/reward in between heavy/long tasks, To pass time/keep occupied

To pass hunger, Meal Replacement, Energy Boost Convenience, To save time (Instead of a full meal), On-the-

go comfort food Taste, Many Flavors

Survey Results

A great factor for consideration in buying junk food is taste, followed by price.

There is a great number who eat junk food as “comfort food” instead of just as a snack.

Survey Takeaways

No specific emotional or occasional association with Pik-Nik

Cannot be considered “real comfort food” by its consumers◦ Most common are Chocolates, Ice cream, and

cakes; Frito Lay products is the most associated “comfort food” among the imported snacks industry.

Most recognizable (and favorite) Flavor for Pik-Nik is its Ketchup Fries

Interviews

Wouldn’t buy Pik-Nik deliberately, but would eat it if it was there already.

Usually bought if “nagsawa” from other imported snack foods.

Pik-Nik’s packaging is large and is difficult to squeeze into one’s bag

Interviews

Users of the internet have a skewed demographic towards the younger (below 30) generation

The Philippines’s online market has a 50% penetration rate (approximately)◦ Pik-Nik’s target market (B and C SEC) consists of

approximately 40% of the Philippine population 90% of internet users are on Facebook Flash Game Development Costs are at

around 7,000Php – 50,000Php depending on complexity

Interviews

Competitive Analysis

SWOT Analysis (Pringles)

SWOT Analysis (Frito Lay)

SWOT Analysis (Oishi)

The competition of Pik-Nik all have an online presence, with Frito Lay having the most online presence and assets, and Oishi having the least.

Pik-Nik has almost no online presence, and no online assets, and is obviously missing out on this opportunity.

A great number of the individuals that Pik-Nik is targeting can easily be reached through this untapped medium.

Competitive Analysis Takeaways

Except for Oishi, the imported snacks market do not have a locally targeted online campaign.

The competition for flavor innovation is fierce.

Competitive Analysis Takeaways

Internal Analysis

Place◦ California Plant◦ Local Distributor◦ Traditional Modern Trade Channels◦ Some General Trade channels (School cafeterias)

Price◦ Premium Price due to its being an imported Snack◦ Less expensive than Frito Lay and Pringles, but

more expensive than Oishi and other local snacks.

Marketing Mix (4Ps Analysis)

Product

All natural potato snacks ◦Made from fresh potatoes, pure vegetable oil and other seasonings

◦100% no preservatives◦Ensures crisp, crunchy texture and a superb fresh fried potato taste.

◦Packed in re-sealable, foil-lined, “stay fresh” canisters to retain freshness

Product

Two years shelf life.Single Serve size is child safe with no metal rings or sharp metal edge on lid

Every medium and large size container comes with a reusable, plastic lid

Pik-Nik Categories: Unflavored

◦Original Shoestrings◦50% Less Salt Shoestrings◦Fabulous Fries

Pik-Nik Categories: Flavored

◦Ketchup Fries◦Cheddar Cheese Shoestrings◦Honey Mustard Shoestrings◦Hot! Shoestrings

Three Sizes

SMALL 1.5 oz (42 grams) - 1.75oz. (50 grams)

MEDIUM 3.75 oz ( 106 grams) – 4 oz. (113 grams)

LARGE 8.5 oz (241 grams)- 9oz (255 grams)

Sampling and Selling programs

Promotions

Events Sponsorships

Dispenser Programs - (Cinema Snack Bars) On-Premise Activation Programs Recipes on the website Holiday/ Hamper programs Cable TV exposure

Promotions

No differentiating factor No innovative factor except for “Pik-Nik

recipes” Inadequate efforts to sustain good business

OR obtain goal of becoming number 1.

4 P’s Takeaways

SWOT Analysis

Marketing Insights

The consumers of junk food are at various ages, but Pik-Nik chose to market to those aged 18-25. The characteristics I have obtained from my research survey has shown that they are mostly going through an emotional roller coaster at this point in their lives

Insights

These individuals are in the “twilight zone” of being the problems and care-freeness teenager and responsibilities of an adult. It is in these moments that these individuals make the first most important choices for their lives.

It is in these delicate moments that we need our friends the most for support, but only real friends stick with you thru good times and the bad. ◦ This is most true for high-schoolers choosing/entering

college, college students choosing their first job, or couples checking where they are headed towards, etc.

Insights

The Philippine environment’s online market is growing steadily, with its current penetration level at 50% of the population. This new channel is a good, cheap, and effective way to reach Pik-Nik’s target consumers.

Insights

“These periods of uncertainty in my young adult life are moments that will define me, and I want to know that I am making the right choices. I am going through so much in my life right now that this is the moment I need the most help, and it is only true friends that will stay with me through good times and the bad.”

The Consumer Insight

Target Marketing

Young & trendy 18 to 25 years old Gregarious Fun loving Adventurous Independent & dynamic Eating “on the move” Snacking for fun

The Target Market (OLD)

Young, emotionally “high”, teenagers, transitioning to the adult life (Aged 18-25)

Fun loving and yet care for the consequences of their actions to their future

Those individuals who are in the middle of their “soul-searching” through the choices they are about to make.

The Target Market (NEW)

Detailed Action Plan

To have 10,000 fans by the end of the year on Pik-Niks new facebook fan page.

To have associated the positioning of “Pik-Nik: The True Friend” beyond the promotional activity

Goals

Produce a flash game to be posted online (Facebook Fan Page), with an online scoring system and public leaderboards.◦ Tetris, with tiles as Pik-Nik strips◦ Weekly Winners obtain a 100Php Pik-Nik Gift

Certificate Utilize SEO and PPC to drive traffic to the

website Have a monthly photo uploading competition

where users “nominate” someone who needs a friend, and a little cheering up.

Action Plan