Honey Nut Cheerios

Bryan GriffithProfessor Kornblau

Media Planning

Introduced by General Mills Cereal Company in

1979. This is the second variation from Original

Cheerios, it is sweeter than the original, with a honey and almond flavor.

Honey Nut Cheerios is the number one brand in the cold cereal industry!

Honey Nut Cheerios History

Strengths Weaknesses

Opportunities Threats

SWOT Analysis

Strengths

Certified by the American

Heart Association

12 Vitamins and minerals

Weaknesses

Uses natural flavoring instead of real nuts

Contains allergens

Internal Strengthens and Weaknesses

Opportunitie

s

Growing Hispanic and

African American markets.

Higher want to better quality

and more nutritious food

Threats

-Post-Kellogg's

-Recent water droughts causing decrease supply of wheat.

External Opportunities and Threats

Competitive Analysis

Honey Nut

Cheerios

Honey Bunches of Oats

Regular Cheerios

Froasted Flakes

0100200300400 336.3 302.1 287.9 252.2

Revenue

Revenue

0

45.22 4.69 4.47 3.91

Market Share

Market Share

Source: Sosland Publishing Corporate Profiles- Milling & Baking News Supplements, October 11, p. 18 from SymphonyIRI Group Inc.

White, African American or Hispanic families with

four or more people in the family. (Hispanic Index: 135, Black Index: 142, Family with 4+: 137+)

Most preferred for ages 18-44 but most likely includes younger kids since the more kids a family has the more likely they will buy Honey Nut Cheerios (Index: 119-128)

The highest index for the age of a child in the household was ages 6-11 years. (Index: 185)

The more children the higher the index (1=152, 2=134, 3=153, 4=159, 5=158…)

Target Audience: Demographics

DEMOGRAPHICS DATA

47.1652.84

GENDER

MALEFEMALE

13.18

19.1

23.39

20.64

10.54

13.15

AGE

18-2425-3435-4445-5455-6465+

Demographics: Race

Honey

Nut

Che

erio

s

Honey

Bun

ches

of O

ats

Cheer

ios

Fros

ted

Flak

es0

100

200

300

WhiteBlackAsianHispanic

Race

WhiteBlackAsianHispanic

Demographics: Hispanic

Cuban

Mex

ican

Puer

to R

ican

Other

020406080

100120140160

84

142 135 140

PercentageIndex

People & Children in Home

1

2

3

4

5

6

7

8+

Children IndexPeople Index

un-der 2 yrs

2-5 yrs

6-11 yrs

12-17 yrs

0

40

80

120

160

200

Index

Index

Shopping Behavior:

Buyers are people who prefer to buy things that friends or neighbors approve of. (Index: 125)

Enjoy shopping with children (Index: 116) Child has significant impact on brands parent(s)

choose. (Index: 149) Social Interaction

Other people say these buyer’s enthusiasm is contagious. (Index: 117)

Other people copy what they do and they are very social people. (Meeting new people and trying new things) (Index range: 119-129)

Target Audience: Psychographics

Marketing Objectives

1

• Increase market share by 10% (Market share is at 5.22%) in the next 18 months.

2

• Maintain number one position and Increase sales by 5% over the next 6 months.

Media Objectives

• Have a yearly average of 100 GRPs per week.

Reach & Frequency

• While maintaining an advertising budget around 74,000,000, create a national awareness campaign using TV and internet.

Share of View (Ad expenditures)

Company Company Ad

SpendingBrand Brand Ad

Spending

General Mills 246.0 M Honey Nut Cheerios

74.7 M

Kellogg 162.3 M Mini-Wheats 53.9M

Post 13.8 M Pebbles 13.6 M

General Mills 246.0 M Cheerios 34.8 M

Kellogg 162.3 M Frosted Flakes 40.6 M

Top Cereal Advertising Spending

73.7

49.9

29

19

12.69.8

7.97.12.1 0.1

Ad Spending in MillionsHoney Nut Cheerios

Cheerios

Cinnamon Toast Cruch

Chex

Lucky Charms

Reese's Puff

Trix

Cocoa Puffs

Cookie Crisp

Kix

General Mills Ad Spending by Brand

Geographic Regions

0

20

40

60

80

100

120

CDIBDI

Focus more advertising expenses

Top 14 DMA’s

DMA CDI BDIATLANTA 103 117BOSTON 98 77CHICAGO 97 111CLEVELAND 101 92DALLAS 104 115DETROIT 100 93HOUSTON 102 94LOS ANGELES 100 127MIAMI 97 81NEW YORK 94 99PHILADELPHIA 101 128SAN ANTONIO 102 146SAN FRANCISCO 89 59WASHINGTON DC 96 95

High CDI, Low BDI

• CDI=98• BDI=77• Great opportunity to focus more advertising dollars

Boston

• CDI=101• BDI=92• Focus more advertising dollars

Cleveland

• CDI=102• BDI=94• Focus more advertising dollarsHouston

Maintain advertising

expenditures

Chicago

Los Angeles

Philadelphia

San Antonio

Atlanta

Dallas

High CDI, High BDI

These markets have been doing great in the category and for our brand. We will continue putting a lot of advertising in these areas.

San

Fran

cisco

Washington DC New York

Low CDI & BDI

These DMI’s have a low CDI and BDI which means that we will focus less of our advertising expenses in these areas. But because the CDIs are close to the average we will still focus on these areas

Media Classes

TV

Internet

Radio

The top media classes that I decided to choose are TV, Internet, and radio.

I will focus more advertising expenses for TV then for Internet and TV.

Media vehicle selection will be influenced by whether or not they are viewed by children.

0

100

200

Index

Index

Top TV Vehicles

Top Network TV Choices

Index over 150

Adult Swim

Cartoon Network

Disney

Disney XD Fuse

MV2

Nickelodeon

Teen Nick

**TV shows are centered around children programming

Network Daypart 2th/4th

Qts CPP100 GRP 1st/3rd

Qrts CPP100 GRP

Adult Swim Prime $24,200 $2,420,000

$15,500 $1,550,000

Cartoon Network

Prime $24,200 $2,420,000

$15,500 $1,550,000

Disney Prime $24,200 $2,420,000

$15,500 $1,550,000

Disney XD Prime $24,200 $2,420,000

$15,500 $1,550,000

FUSE Late Night

$19,400 $1,940,000

$16,800 $1,680,000

MTV 2 Late Night

$19,400 $1,940,000

$16,800 $1,680,000

Nickelodeon

Prime $24,200 $2,420,000

$15,500 $1,550,000

Teen Nick Prime $24,200 $2,420,000

$15,500 $1,550,000

Network TV Cost Estimates

Website Advertising

Website IndexABC.COM 114ABOUT.COM 110AMAZON.COM 106ASK.COM 129CWTV.COM 177DISNEY.COM 145GAMESPOT.COM 150ITUNES.COM 135MOVIEFONE.COM 149MYSPACE.COM 147TWITTER.COM 143UFC.COM 166YOUTUBE.COM 130

MySpace ROS= $3.50 cost per thousand

3.50 x 1,000= $3,500 $3,500 x 100= $350,000 (For 100 GRPs)

YouTube=$5.00 CPM$5.00 x 1,000= $5,000$5,000 x 100= $500,000 (For 100 GRPs)

ESPN brand= $22.00 CPM$22.00 x 1,000= $22,000$22,000 x 100= $2,200,000

(For 100 GRPs)*Used this CPM because my target are high users of sport websites

Times Index CPPSAT - SUN 7PM - MID 137

$46,000

MON - SUN 7PM - MID 125 $46,000

MON - FRI MID - 6AM 125 $46,000

MON - FRI 7PM - MID 124 $46,000

SAT - SUN MID - 6AM 121 $46,000

MON - SUN MID - 6AM 117 $46,000

SAT - SUN 3PM - 7PM 117 $46,000

Top Radio Times

Final Media Choices

TV

Cartoon Network

Disney

Disney XD

Nickelodeon

Internet

MySpace (Regular and

Music)

YouTube

Facebook

Radio

A(25-54)

Percentage of Ad spending

94.2

1.25 4.87

Percentage of Ad Spending

TVInternet Radio

TV:$69,720,000

Internet: $924,000

Radio: $3,600,000

Total:$74,000,000

First Quarter Flow Chart

Honey Nut Cheerios January February March

31 7 14 21 28 4 11 18 26 4 11 18 25TV                          

Prime Time                          Cartoon Network                          Disney                          Disney XD                          

Nickelodean                          Internet                          

MySpace.com                          

YouTube.com                          

MySpace Music                          

Facebook.com                           Radio                          A(25-54)                          

First Quarter GRP & Price

Cartoon Network

• 300 GRP• $4,650,00

0

Disney

• 300 GRP• $4,650,00

0

Disney XD

• 300 GRP• $4,650,00

0

Nickelodeon

• 300 GRP• $4,650,00

0

MySpace

• 1200 GRP• $42,000

YouTube

• 1200 GRP• $60,000

MySpace Music

• 1200 GRP• $45,000

Facebook

• 1200 GRP• $84,000

Total: $18,831,000

Second Quarter Flow Chart

Honey Nut Cheerios April May June

1 8 15 22 29 6 13 20 27 3 10 17 24TV                          

Prime Time                          

Cartoon Network                          Disney                          Disney XD                          

Nickelodean                          Internet                          

MySpace.com                          

YouTube.com                          MySpace Music                           

Facebook.com                          Radio                          A(25-54)                          

Second Quarter GRP & Price

Cartoon Network

• 200 GRP• $4,840,00

0

Disney

• 200 GRP• $4,840,00

0

Disney XD

• 1200 GRP• $4,840,00

0

Nickelodeon

• 200 GRP• $4,840,00

0

MySpace

• 1200 GRP• $42,000

YouTube

• 1200 GRP• $60,000

MySpace Music

• 1200 GRP• $45,000

Facebook

• 1200 GRP• $84,000

Radio

• 200 GRP• $1,800,00

0

Total: $21,391,000

Third Quarter Flow Chart

Honey Nut Cheerios July August September

30 1 15 22 29 5 12 19 26 2 9 16 23

TV                          

Prime Time                          

Cartoon Network                          

Disney                          

Disney XD                          

Nickelodean                          

Internet                          

MySpace.com                          

YouTube.com                          

MySpace Music                           

Facebook.com                          

Radio                          

A(25-54)                          

Third Quarter GRP & Price

Cartoon Network

• 200 GRP• $3,100,00

0

Disney

• 200 GRP• $3,100,00

0

Disney XD

• 1200 GRP• $3,100,00

0

Nickelodeon

• 200 GRP• $3,100,00

0

MySpace

• 1200 GRP• $42,000

YouTube

• 1200 GRP• $60,000

MySpace Music

• 1200 GRP• $45,000

Facebook

• 1200 GRP• $84,000

Radio

• 100 GRP• $900,000

Total: $13,531,000

Fourth Quarter Flow Chart

Honey Nut Cheerios October November December

30 7 14 21 28 4 11 18 25 2 9 16 23TV                          Prime Time                          Cartoon Network                          Disney                          Disney XD                          Nickelodean                          Internet                          MySpace.com                          YouTube.com                          MySpace Music                           Facebook.com                           Radio                          A(25-54)                          

Fourth Quarter GRP & Price

Cartoon Network

• 200 GRP• $4,840,00

0

Disney

• 200 GRP• $4,840,00

0

Disney XD

• 1200 GRP• $4,840,00

0

Nickelodeon

• 200 GRP• $4,840,00

0

MySpace

• 1200 GRP• $42,000

YouTube

• 1200 GRP• $60,000

MySpace Music

• 1200 GRP• $45,000

Facebook

• 1200 GRP• $84,000

Radio

• 100 GRP• $900,000

Total: $20,491,000

TV Schedule Rationale

Flighting (4 weeks on then four weeks off) to keep HNC fresh in the minds of audience

No TV ads for months where children have vacation because they are likely to sleep in and miss breakfast

Focus on networks that are children oriented because kids and adults with kids are more likely to eat HNC

Internet Schedule Rationale

Focus on sites where children and adults with

children visit

Continuous strategy,

advertising all year round

Make up for months with

no TV

Radio Schedule Rationale

Concentrates on summer months for

lack of TV ads

Also last week of Dec for Christmas and New

Years resolutions

Keep HNC in the mind of consumers

Sosland Publishing Corporate Profiles- Milling & Baking News

Supplements, October 11, p. 18 from SymphonyIRI Group Inc.

Experian Simmons. (2010). Spring 2010 National Household Consumer Survey adult survey 12-month [Data file]. Retrieved from http://oneview.experian.com

"Honey Nut Cheerios®." Cheerios. N.p., n.d. Web. 04 Oct. 2012. <http://www.cheerios.com/Products/Honey-Nut-Cheerios?nicam1=Paid_Search>.

http://adage.com/article/news/general-mills-sees-sales-rise-media-spending-boost/143216/

Works Cited