Nestle Purina Fiesta Marketing Plan (Revised)

M o r a l e s -‐ N e u f e l d

Marketing Plan: Nestle Purina Beneful Fiesta

Fran Morales-Neufeld

Professor Drew Stevens

MKGT 5000 Marketing

1 December 2011


Table of Contents Marketing Plan: Nestle Purina Beneful Fiesta .................................................................... 1

Executive Summary .................................................................................................................... 3

Current Market Situation (Market Description) ......................................................................... 4

Target Market Selection: 4G's .................................................................................................... 6

PEST Analysis ............................................................................................................................ 7

Market Mix: 4P's ....................................................................................................................... 10

Situation Analysis (SWOT) ...................................................................................................... 13

Competition ............................................................................................................................... 13

Marketing Strategy .................................................................................................................... 15

Objectives ................................................................................................................................. 15

Promotional Strategy ................................................................................................................ 16

Budget .......................................................................................................................................... i

Appendix ...................................................................................................................................... i


Executive Summary

Nestle Purina PetCare is a multimillion dollar global company headquartered in St. Louis.

The company’s key focus is on health and nutrition for pets.

Nestlé Purina PetCare Company’s goal is to lead with fresh, innovative approaches to

making the lives of dogs and cats better through constantly exploring new trends and ideas that

define the future of pet care and of Nestlé Purina (“Nestlé Purina PetCare: Creating Shared

Value”). One of 40 Nestle Purina brands offered in the United States, Purina Beneful Dry Dog

Food has created a new Healthy Fiesta blend that targets U.S. Hispanics and their Latino dog.

Healthy Fiesta provides balanced nutrition to help keep your dog happy and healthy.

Healthy Fiesta is made with wholesome ingredients like omega-rich nutrition accented with

avocado, real chicken rich in protein, rice that’s packed with carbohydrates for energy,

antioxidants, carrots and tomatoes for vision support and immune system support (Beneful.com).

In response to the growing Hispanic demographic here in the U.S., Nestle Purina PetCare

Company introduced the Spanish-sounding brand to target this market segment in September

with the commercial dubbed “Pool Party” but after making several attempts to reach out to the

overall Hispanic demographic the reception to the brand fell flat.

Nestle Purina wants to re-adapt the Healthy Fiesta brand’s attributes in a culturally

relevant manner to reach the market segment at an emotional and intellectual level (Bauza &

Associates). Healthy Fiesta wants man’s best friend to share similar traits to its owner. We will

research local environments, cultures, and any details specific to each subgroup to capture the

tonality and expression — in other words — language that speaks to this audience.

The company will re-launch the Healthy Fiesta brand in January 2012 to appeal to the

Latino dog. For our 2012 Healthy Fiesta marketing plan, we will test the product’s success and


message targeting individual demographics — Caribbean and Latin American communities — in

the New York Tri-State area. We want to transcreate our message to creatively adapt marketing,

sales, and advertising collateral in the target language.

What is the benefit of catering to the market?

v Hispanics now account for the largest minority in the U.S. While Hispanics are distinct

from the majority, they are diverse within as well — meaning they are not homogenous

— in other words, there are many markets to target within the Hispanic population.

v Hispanic buying power is expected to rise to over $1 trillion by 2010, representing 9.2

percent of the entire U.S.’ buying power.

v U.S. Hispanics overall prefer bilingual signage and appreciate culture-based marketing.

Current Marketing Situation (Situation Analysis)

According the New York City Department of Health and Mental Hygiene, Hispanics are

more likely than whites or blacks to own dogs. Hispanics are also drawn to canines that strongly

identify with their personalities. From spunky Chihuahuas in Spanish Harlem to tough

Rottweilers and mix breeds in the South Bronx, these furry companions

provide safety, security and friendship (Saulny, Susan “New York’s Top

Dog? It Depends on the Zip Code”). Dogs who live in the city and live

with Hispanic families are often socialized really well. They like their

owners, are aware of whom they are — they are streetwise, spunky,

intelligent, and bilingual.


Nestle Purina PetCare company launched the Healthy Fiesta brand this September to

appeal to the Latino dog. While this was a good first attempt at targeting and appealing to the

Hispanic market, its aim was too broad and as a result the response fell flat. The “Pool Party”

commercial, which included Puerto Rican leading man, Eddie Matos hugging it out and doing a

pool dive with his four-legged best friend, was not embraced by the Hispanic community. The

viral campaign also did not have legs to become a success with a disappointing 150 views — of

that 25 viewers “liked” the commercial (click here to see YouTube video). In other words, the

commercial was not enough to make Hispanics want to rush out and buy a bag for their family

perrito. Thus in order to provide customer value, we must identify who is our target market.

Through extensive market research we found that there are subgroups within the Hispanic

segment and that they — Hispanics — are generally hard working and family oriented.

Hispanics are very diverse and congregate in different pockets throughout the U.S. New York

has a very high concentration of U.S. Hispanics, approximately 17.6 percent of the nearly 19.3

million people with the Bronx being by far the most Hispanic borough (2010 U.S. Census, Quick

Facts). Thus to monitor the success of the Healthy Fiesta brand, we’ve chosen New York as a

sample region to test the campaign before it goes national.

As part of Purina Beneful Dry Dog food developed by Nestle Purina PetCare Co.,

Healthy Fiesta provides balanced nutrition to help keep the New York dog happy and healthy.

Dog owners want their canines to eat what they eat. The Healthy Fiesta blend provides the

product with a Latino twist that includes wholesome ingredients like real chicken, rice, carrots,

and tomatoes with hints of avocado (Beneful.com).


As a test market, the company will strategically distribute the Healthy Fiesta products to

highly concentrated urban areas where Hispanics reside. The following Market Description

specifies the market, product performance, competition, and distribution in this test market.

Market Description

Target Market Selection:

To sample the success of the brand, Healthy Fiesta will be marketed and distributed to the

Tri-State Area, specifically the boroughs of New York. The Healthy Fiesta product will be

available in accessible bodegas and mega stores such as Pathmark, Shop Rite, Wal-Mart, and

Target Stores where there are high concentrated number of Hispanics in the following

geographic areas:

• Manhattan

• Bronx

• Queens

• Staten Island

• Long Island

• Brooklyn

In keeping with Nestle Purina PetCare Co. mission to improve the lives of dogs through

quality nutrition and care, Healthy Fiesta maintains its core philosophies including but not

limited to the following:

• Promoting responsible pet care

• Humane education

• Community involvement


• Positive bond between people and their pets

Nestle Purina’s key focus is to build and maintain trust with its consumers and

stakeholders. With its credible reputation, it continues to work to earn that trust providing

that expertise in nutrition and quality brands. This marketing campaign aims to build that

trust with Hispanics in the Tri-state region. There are several factors, including

environmental forces outside marketing that affect the marketing management’s ability to

build and maintain the successful relationship with this consumer base (Armstrong, Gary and

Kotler Philip 66). From a micro-environmental perspective, the company must adapt to the

changing marketing segments to appeal to the wants and needs of this booming demographic.

In 2010 the U.S. Census reported that Hispanics were the dominant consumer group in the

U.S. and their growth has impacted political landscape, retail business and every day

lifestyles nationwide.

Communication, recognition, and identity are the main ingredients for retaining and

maintaining the relationship with Hispanics. But connecting with Hispanics is complex.

Cultural factors, such as language and length of time in the U.S. as well as local and every

day factors such as shopping at grocery stores or the roads traveled to get to work are just

some of the necessary details that impact marketing strategy. This means its suppliers,

marketing intermediaries, etc. have to do their part in keeping this consumer segment happy,

fulfilling their wants and needs as pet owners. From a macro-environmental perspective,

there are larger societal forces that affect the microenvironment of this group, such as

demographic, economic, society, technology, politics, and cultural forces (Armstrong, Gary

and Kotler Philip 67). The following PEST analysis lists these factors.


• Political: Laws, government agencies, and pressure groups that influence and limit

various organizations and individuals in a society (Armstrong, Gary and Kotler Philip

83). There are no limitations in these subgroups as majority of these Hispanics are U.S.

born and have assimilated to the American culture and norms.

• Environment: Large portion of these subgroups live in urban city apartment complexes

and are heavily dependent on subway transportation. Communities in which they inhabit

are tightly knit communities where bilingual messages are constant. In most cases

Spanish-language is mostly dominant. New York is in a top-tier market, which means

higher cost for ads, however there are multiple opportunities for a wider reach.

• Societal: Communities in the Tri-State region embrace ethnic heritage and American

culture. These communities have also converged with other ethnic groups creating a

melting pot. These groups mixed together with Hispanic ethnic groups have retained and

value important ethnic and cultural differences (Armstrong, Gary and Kotler Philip 76).

Overall, the U.S.’ Hispanic population has grown 1.5 percent every five years and is now

approximately 51 million people, or 15 percent of the population. As the Hispanic

population continues to grow it will drive new community trends. For instance in the Tri-

State region, retail stores, bodegas, grocery stores have tailored their message and look to

appeal to the city's Hispanic communities using colorful window displays and images

recognizable to Hispanics. A new study from the University of California titled

Assimilation Tomorrow, demographers tracking the waves of immigrants from the 1990s

based on those who came before found that foreign-born residents are integrating into

mainstream American society at a rate that will see them achieve “great success” by

2030. For instance the number of Hispanics who speak English well is estimated to rise


from 57.5 percent to 70.3 percent. This means we can alter Healthy Fiesta brand in

bilingual messages (Grey, Liana "Growing Hispanic Population Driving New

Community Trends”).

• Technological: In the digital arena, Hispanics represent both a fast growing population

and a group that has embraced online video, mobile phones, tablets, and a number of

other newer technologies faster than the general population (Winslow, George “NBC

Plans Latino-Targeted Site”). A recent study conducted by the research firm Horowitz

Associates, shows that about two thirds of all Hispanics or 66 percent view TV

programming at least once a week on a computer, laptop or handheld device, a much

higher rate than the 54 percent of the overall population or 47 percent of whites

(Winslow, George “NBC Plans Latino-Targeted Site”). The study also found that

Hispanics are digitally savvy, embracing the constant ever changing technology. For

instance, the study found that 22 percent of Hispanics said they were more likely to

weekly stream TV programming over a tablet — compared to 10 percent for whites or 13

percent for the general population. The study also found that 23 percent of Hispanics also

stream and receive information and news through the use of cell phones compared to 16

percent for whites and 18 percent for the population as a whole (Winslow, George “NBC

Plans Latino-Targeted Site”).

Demographic

Healthy Fiesta will create customer value and achieve profitable customer relationships

properly marketing to U.S. Hispanics, particularly of Puerto Rican, Dominican, Cuban, and Latin

American descent. The marketing campaign will appeal to predominantly second and third

generations.


• Age: 21-45 (Millenials and Gen Xer’s)

• Gender: Male and Female

• Family size: The Brand does not cater to any particular family size.

• Family life Cycle: Brand does not cater to particular life cycle.

• Income: $45,000 +

• Occupation: Does not specifically target occupation.

• Education: College-Educated

• Religion: Hispanics are predominantly Christian

• Race/Ethnicity: Hispanic

o Nationality: Puerto Rican, Dominican, Cuban, Latin American

Psychographics

The Healthy Fiesta campaign will target this segment various ways included but not

limited to social class, lifestyle, and personality characteristics, specifically middle class

Hispanic urbanites that love city life. Nuyoricans and other Hispanic subgroups that live in the

city are edgy and not afraid to take chances, always trying to reach the American dream. These

city-goers love their dog in different ways. From walking their dog on the streets, to playing in

the city park, this dog lives the lifestyle of its owner. It’s no surprise as Hispanics consider their

pets part of the familia.

Behavioral

Being part of the family, Hispanics generally like to feed the dog well, or rather products

that identify with their cultural heritage. They expect their furry companions to live a long and

healthy life thus their food needs to also provide that longevity.


Marketing Mix: Four P’s

The Healthy Fiesta brand has fine-tuned its tactical marketing

tools — product, price, place, and promotion — to help produce a

positive response from this target market.

Product:

Beneful Healthy Fiesta Dog Food (Made in U.S.)

• 31.1 lb. bag; 7 lb. bag; 15.5 lb. bag; 3.5 lb. bag

Price:

• $5.99-$23.00

Product Details:

• Healthy Fiesta provides balanced nutrition to help keep your dog happy and healthy,

made with wholesome ingredients including festive accents of avocado and tomato.

• Protein-rich nutrition, with real chicken, helps build strong muscles.

• Wholesome rice, packed with carbohydrates for energy.

• Antioxidant-rich nutrition, accented with carrots and tomatoes, helps support vision

and a healthy immune system.

• Omega-rich nutrition, accented with avocado, helps promote healthy skin and a shiny

coat.

Place:

• Bodegas, Wal-Mart, Target, Price Rite etc., in urban areas where Hispanics generally

congregate.


Promotion:

• Quality Initiatives:

o Telemundo NYC Partnership

o Community outreach through NYC Humane Society

• Product Integration and 360 Marketing through the use of

o Media:

§ 30-second ads to air during high rotation of

novelas and morning shows in Spanish-

language networks Univision and

Telemundo.

• Promotion: Concurso de La Mejor

Mascota (to be aired during

Telemundo’s morning show Levantate)

o Social Media: Microsite on Telemundo details the benefits of the Healthy

Fiesta brand. Web banners on main Telemundo website page will connect to

Healthy Beneful website and the microsite. Microsite will include an

interactive game, Disfrace tu Mascota where viewers can submit pictures of

their mascotas — pets — and alter their image to make them look like their

owners i.e. pearls on dog for instance. Viewers must fill out information so

pictures can then be emailed to them. Home address requirement helps to send

out coupons to viewers who submit information.

o Traditional Media: Print and TV


§ Cesar Millan will be the new face of Healthy Fiesta for 2012. In

addition to co-creating and starring in “Dog Whisperer” on the

National Geographic Channel, Millan has also co-authored three best

selling books. His true claim to fame is his talent for handling dogs —

specifically mix breeds. Aside from the generic commercials, Healthy

Fiesta will also include 30-second vignettes where Millan will teach

viewers to apply techniques for training and rehabilitation of their own

dogs. Commercials and vignettes will include opening and closing

logo placement. Print ads will be included in local NY Spanish-

language newspapers and will include information to draw viewers to

the website and microsite.

o Earned media: Strategic Press Releases will spin positive stories about the

campaign and its promotional contests. The image of Millan as spokesperson

will also build brand awareness and add credibility. In partnership with

Telemundo NYC, the campaign, specifically the announcement of Millan as

spokesperson will garner coverage from Telemundo’s national variety show,

Al Rojo Vivo.

Situation Analysis

The following is an overall evaluation of the Healthy

Fiesta brand’s overall Strengths, Weaknesses, Opportunities,

and Threats. The analysis will also provide details of the

brand’s competitors and how the brand can differentiate itself.

• Strengths


o Product re-launch will receive attention

o Healthy Fiesta contains real and natural nutrients for all lifestyle changes

o Flavors identify with Hispanic heritage and dogs like taste

o Cost is competitive

• Weaknesses

o First launch of product to target market failed to be innovative

o Hasn’t built reputation like company brand

o Brand loyalty is not strong

o Brand image and presence not established

o Reach was far too broad and did not identify, or speak to market segment

§ For example “Pool Party” commercial failed to connect with

Hispanic consumer base

• Opportunities

o Promotional activities will garner attention and trust from market segment

o Establish new identity that speaks to market segment

o Cesar Milan new face of brand for 2012 will connect with second-third

generation urban Hispanics

o Use of social media will further reach target market

• Threats

o Persuading pet owners to switch dog food may be difficult

o Many dog food competitors already identify their product as “great

tasting” and “healthy”

o Economic slowdown


Competition

There are two competitors that stand out in this region:

• Eukanuba

o Market Position: Eukanuba aims to keep pets fit.

o Strategies for product quality: Packaging for natural and fortified pet foods

using graphics that highlight health benefits.

o Pricing: $9-$52

o Distribution: PetCo and Petsmart Stores

o Promotion: To differentiate their pet foods, treats and supplements from the

growing ranks of competitors, Eukanuba pet food marketers are using

distinctive package graphics that convey nutritional and natural qualities.

• Pedigree

o Market Position: Every dog deserves leading nutrition. In reality the corn-

based kibble uses limited amount of meat and chicken by-products meals as

its main sources of animal protein.

o Strategies for product quality: Pedigree’s traditional advertising is

recognizable to consumers.

o Pricing: $9-$21

o Distribution: PetCo, Petsmart, Wal-Mart, Target

o Promotion: High rotation of commercials solidifies retention and builds on

ROI.


Marketing Strategy:

The goal of Healthy Fiesta is building on customer acquisition and retention of the brand

to increase ROI.

• Objectives: To increase Hispanic brand awareness by 10 percent and purchase power by

double digits (Armstrong, Gary and Kotler Philip 76).

• Promotional Strategy

o Develop promotional campaign El Amor de tu Mascota.

o Cesar Milan will be the face of Healthy Fiesta and this promotional campaign in

2012. Milan’s image can easily market to English and Spanish markets.

o Healthy Fiesta commercials will include real people with their pets in the New

York boroughs that speak to various cultural and urban identities.

§ Tactic: Commercials to be aired on Telemundo and Univision with

Telemundo obtaining main promotional efforts.

§ Commercials need to portray real identities of people in test region.

§ Cesar Milan vignettes that offer advise on dog training with opening and

closing logo placements.

o Social media campaign will launch in same time frame as traditional media

campaign.

§ Telemundo to provide Microsite for Healthy Fiesta in Spanish

§ To include web banners that also lead to main Healthy Fiesta website.

§ 15-second commercial teasers to promote Microsite and its function.

§ El Concurso Del Mejor Mascota: Part of web campaign, where viewers

submit photos and videos of their dogs and explain why their dog is the


best pet. Will be advertised and promoted in Telemundo morning show

Levantate.

§ Microsite to include an interactive game, Disfrace tu Mascota where

viewers can submit pictures of their mascotas and alter their image to

make them look like their owners. Viewers must submit information so to

obtain access to pictures.

o Cause-related marketing: The brand will partner with the New York Humane

Society to create a dog parade and promote pet adoption. The partnership will

promote social responsibility and build a positive image for Healthy Fiesta. For

every bag of dog food purchased, the company will donate $5 to the New York

Humane Society. This will be backed by a large budget and marketing activities

to promote event (Armstrong, Gary and Kotler Philip 87).

o Outdoor advertising: Healthy Fiesta will hold presence in New York interstate

highways in specific areas of New York including Bronx, Harlem, Queens, Staten

Island, Long Island and Brooklyn. Posters in bodegas will also be included.

o Product, pricing and place: Already at competitive price, Healthy Fiesta will be

sold in bodegas and stores in urban areas where Hispanics are highly concentrated

included but not limited to Wal-Mart, Target, and Price Rite, etc.

Budget (See Gantt Chart in Appendix I.)


Controls

To evaluate the results of the marketing strategies, the Healthy Fiesta marketing team will

implement marketing controls to measure the success of the brand in the test region (Armstrong,

Gary and Kotler Philip 58).

o Return on Investment (ROI) is the net return from a marketing investment divided

by the costs of the marketing investment (Armstrong, Gary and Kotler, Philip 59).

This control measures the profits generated by investments in marketing

activities.

o Marketing dashboards are meaningful sets of marketing performance measures

that monitors strategic marketing performance (Armstrong, Gary and Kotler

Philip 59). This customer-centered measure of marketing helps to view the impact

such as customer acquisition, customer retention, customer lifetime value, and

customer equity.

o E-newsletters (retention of emails)

o Google Analytics: to view number of viewers who visit the website and

Microsite.

o Establish Rewards program to include Newsletters and coupons

Conclusion

In keeping with Nestlé Purina PetCare Company’s mission, Healthy Fiesta's goal is to

lead with fresh and innovative ideas to make the lives of dogs through exploring new trends that

define the future of pet care and of Nestlé Purina. Healthy Fiesta provides balanced nutrition to

help keep the consumer's perrito happy and healthy. The 2012 Healthy Fiesta marketing plan

will be implemented in the Tri-State region to test the success of the new marketing campaign.


Through consistent research, Healthy Fiesta will identify and speak to its target market, helping

to ensure consumer loyalty, increasing POI and ROI in urban areas where products are to be

sold. Through Healthy Fiesta's promotional mix, the brand's message will help to further reach

Hispanic communities in the test region and build on brand awareness.

i. Appendix

Marketing*Budget

Fiscal'Year

Begins:

Jan012

Jan012

Feb012

Mar012

Apr01

2May012

Jun012

Jul01

2Au

g012

Sep012

Oct01

2No

v012

Dec012

Mon

thly

Average

TotalOv

erview

Budget'Total

341,821

204,737

181,835

179,221

175,382

102,500

102,500

174,500

112,500

102,500

102,500

87,500

155,625

1,867,496

Person

nel'(5)

Salarie

s,)wages

17,500

17,500

17,500

17,500

17,500

17,500

17,500

17,500

17,500

17,500

17,500

17,500

17,500

210,000

Person

nel'Total

17,500

17,500

17,500

17,500

17,500

17,500

17,500

17,500

17,500

17,500

17,500

17,500

17,500

210,000

Market'R

esearch

Firm

)Research)Fees

8,000

7,000

8,000

6,000

7,000

5,000

6,833

41,000

Web

)Research

5,000

3,000

4,000

2,000

1,000

3,000

15,000

Inde

pend

ent)

Research

3,500

4,000

2,000

2,500

1,000

2,600

13,000

Market'R

esearch'

Total

16,500

14,000

14,000

10,500

9,000

00

00

00

5,000

5,750

69,000

Commun

icatio

nsBranding

50,000

20,000

20,000

20,000

20,000

20,000

20,000

20,000

20,000

20,000

20,000

20,000

22,500

270,000

Prom

otions

100,000

50,000

50,000

50,000

50,000

50,000

58,333

350,000

Television

/)New

sprin

t)Ad

vertising

100,000

50,000

30,000

30,000

30,000

30,000

30,000

50,000

40,000

30,000

30,000

10,000

38,333

460,000

Web

)Advertising

20,000

14,514

10,561

13,170

12,478

10,000

10,000

12,000

10,000

10,000

10,000

10,000

11,894

142,723

Dire

ct)m

arketin

g25,000

25,000

25,000

25,000

25,000

25,000

25,000

25,000

25,000

25,000

25,000

25,000

25,000

300,000

Commun

icatio

ns'

Total

295,000

159,514

135,561

138,170

137,478

85,000

85,000

157,000

95,000

85,000

85,000

65,000

126,894

1,522,723

Nestle

)Purina)Pe

tcare)Co

mpany:)B

eneful)Fiesta)Bu

dget

Nestle Purina Fiesta Marketing Plan (Revised)

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