Megan T.

Gill IMC 446 Master s Project SPAM April 28, 2010

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Executive Summary
The purpose of this paper is to identify a niche target audience for SPAM, a mature brand that needs a fresh new approach to build sales. This analysis will cover current marketplace conditions, the key problem, insight and opportunity with rational. Strategic decisions are provided as well as a new value proposition, creative brief, print ad concepts, Facebook page information and ambient marketing. In order to build sales SPAM will target the niche target audience identified as Average Joes, consisting of young single college males (18-24) who recently began living on their own and want convenient healthy food. The communication objective is to generate awareness and spread news that SPAM is a healthy meat that is affordable and quick and easy to prepare. SPAM s marketing objective is to increase sales by generating trial amongst young adult males (18-24), nonusers. This is an opportunity for SPAM to generate growth within current and future market environments.

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Backgrounder
Current Marketplace Conditions SPAM s current market share is 9.20% representing $76.41 million and giving it the number one position in the category (Laszich & Burton, 2010). Recently, SPAM sales have seen an increase due to the recession, demonstrating that consumers demand for SPAM increases when income decreases and consumers purchase SPAM when trying to cut costs (Marcus, 2010). It is more than likely that SPAM sales will decrease after the economy recovers and consumers return to eating at restaurants and choosing costlier cut meats, due to the fact that SPAM is considered somewhat dispensable in good economic times (Creamer, 2008). SPAM competes with other canned meat products such as Goya s Canned Luncheon Meat, Tulip s Jaka bov canned meat, and Armour Treet Pork Luncheon Meat. Currently, SPAM s typical consumers are Caucasian males aged 35 and older (Quantcast Corporation, 2010). These consumers do not show much growth for SPAM because they will eventually begin to die off, which means that SPAM needs to find a new way to build sales. This will be a challenge because SPAM is perceived by many as a fattening food (Lewis, 2000). SPAM is the butt of many jokes and ridiculed as a sort of unhealthy non-food that is only enjoyed by persons of low character (Frye, 2010). Obviously, SPAM will need to change this perception in order to increase sales during a time when consumers are increasingly more health conscious. Currently, between 1/3 and 1/4 of consumers make food choices based on health (Fusaro, 2009). Even though today s consumers are constantly busy, they still want healthy food that is convenient (ArticlesBase.com, 2010). Consumers are also spending more time reading

SPAM 4 labels to determine what ingredients have been used in food products (FDA, 2010). Therefore, consumer behavior and attitudes have changed to a more health conscious focus, which directly affects the sales of processed meals, convenience foods and most importantly SPAM. Key Problem The key problem is that SPAM is not perceived as a healthy tasty food by young health conscious consumers who tend to prepare more meals at home. SPAM is currently perceived by consumers as a crazy meat in a can, not as a healthy alternative to fresh meat. Consumers also tend to associate SPAM with tough economic times and do not consider trying the product on a regular basis, which will become a problem as we move out of the recession. SPAM sales will most likely drop back to pre-recession levels, demonstrating the need to identify a new niche target audience in order to increase sales. SPAM is not currently recognized as an affordable meat that is convenient, healthy and easy to prepare. Insight SPAM, with its high protein content and zero trans fat, is a wholesome meat for young health conscious male consumers who appreciate convenience (NDP, 2010). Opportunity More young adult males under age 24 are preparing meals at home than ever before (NDP, 2008). These consumers have become more health conscious and spend more time reading labels to ensure quality (FDA, 2010).

SPAM 5 Why This is the Best Choice for SPAM This is the best choice for SPAM because young adults are the key marketing target for healthy food because they are likely to be more health conscious and have less cemented purchasing and consumption patterns (Food Processing, 2007). This directly relates to SPAM s problem of not being perceived as a healthy affordable meat and the need for a new niche target audience that can increase SPAM sales. Due to the fact that these young consumers are more likely to be health conscious and are more likely to purchase and try new products, they are the ideal niche target that can help to build SPAM sales. Furthermore, faced with fastpaced modern life, consumers continue to seek convenience and simplicity, which means young adult males that are constantly on the go will appreciate SPAM because it is convenient, quick, and easy (Toops, 2008). In fact, these young consumers are expected to be the primary contributors to the forecasted growth in consumption of easy meals and center of plate proteins, or meat entrees, over the next decade (McLynn, 2009). Therefore, these young health conscious males can fuel the consumption of SPAM because they want easy meals that are high in protein.

Strategic Decisions
Marketing Objective To increase sales by generating trial amongst young adult males (18-24), nonusers. Communication Objective To generate awareness and spread news that SPAM is a healthy meat that is affordable and quick and easy to prepare.

SPAM 6 Rational For These Choices These are the appropriate marketing and communication objectives for SPAM because this niche target audience does not currently consume SPAM. These objectives provide SPAM with a fresh new approach to generate growth within the current and future market environments. Additionally, this niche target audience will solve SPAM s problem of an older, white male consumer base that is slowly going to disappear. The marketing and communication objectives provided will also help SPAM to boost sales at such a crucial time when the economy is recovering from the recession and sales of SPAM will most likely decrease to pre-recession levels. Furthermore, these objectives reflect current changes in consumer behavior, including increasing health consciousness and desire for convenient, quick and easy meals. Strategy for the Campaign Convince Average Joes that SPAM is a quick and easy meal option because it is healthy and affordable and leaves you feeling satisfied. Rational- Why this is an Appropriate Choice for SPAM This strategy is an appropriate choice for SPAM because this target audience is looking for healthy meals that are quick and easy. In other words, this strategy directly relates to the needs of the target audience of Average Joes. Convenience consumers, or consumers who attitudinally place a premium on convenience, are the right audience for SPAM to target in order to generate trial and build sales. Convenience consumers tend to be younger adults, males, singles who have never been married, single member households, and lower income households, which summarizes SPAM s new niche target audience of Average Joes. These

SPAM 7 consumers feel their lives are hectic and rushed and that a dinner taking more than 30 minutes to make is inconvenient (The NDP Group, Inc., 2010). This demonstrates that SPAM s new strategy, as a healthy meat that is affordable and quick and easy to prepare, is the right strategy for this target audience that places a value on convenience and wants tasty meals that don t involve a lot of preparation time. The strategy and target fit hand in hand because SPAM can be eaten raw or cooked, at any meal, at any time, and can be prepared in a variety of ways. Furthermore, almost all of SPAM s recipes on the recipe exchange site can be prepared and on the table ready to eat in 30 minutes or less. SPAM s new strategy is ideal for Average Joes because they are time-starved consumers who continue to spur the growth of the home-meal-replacement category, or pre-cooked food and processed food that requires limited further preparation (Halperin, 2010). Target- Why this Group is the Best Choice Average Joes , young single males (18-24), college students and recently began living on their own. Cooking for themselves for the first time. Hardworking at school and work, care about health and appearance so they want healthy food that is convenient, easy to prepare and affordable. Have not had SPAM and currently think of SPAM as a crazy unhealthy meat in a can. This group is the best target audience for SPAM because they are a significant portion of the U.S. population. As of July 2008, there are 10,845,428 males aged 20-24 according to the U.S. Census Bureau (US Census Bureau, 2010). SPAM s target group of Average Joes is roughly 11 million, but actually includes even more people considering the census did not include males aged 18-19 in this estimate. Targeting a group this large gives SPAM the opportunity for a good

SPAM 8 return on investment. Furthermore, there has been a steady rise in the number of men cooking at home over the last four years, and 67% of men under age 25 will prepare at least one of the next few meals at home (NDP, 2008). Clearly, targeting a group this large, that is also cooking now more than ever before, will help SPAM to build sales and to ensure a high return on investment.

New Value Proposition

Creative Brief
The Product is: SPAM classic The Brand is: The original affordable meat option- healthy, easy to prepare and creative The Role of Advertising: A. What do we want people to do as a result of seeing this advertising? Consider SPAM as a healthy affordable meat that is convenient and easy to prepare.

SPAM 9 B. How do we believe the advertising will work to achieve this? The advertising will work to achieve this by using the target audience of young single males in the ads. The advertisements will reflect the key idea that SPAM is a healthy affordable meat that is convenient and easy to prepare, and will be directed at the target audience. Additionally, the ads will work to achieve this not only by using the target audience in the ads, but using a tone and headlines that will appeal to them. The ads will get the target audience interested beginning with the headline, which will lead them to read the copy of the ad and help to change their attitude about SPAM. The ads will help to attract the target audience by demonstrating that SPAM is healthy, affordable, convenient and easy to prepare, which will lead the target audience to make the connection that SPAM fits with their busy lifestyles. Who Are We Talking To (Target) Average Joes , young single males (18-24), college students and recently began living on their own. Cooking for themselves for the first time. Hardworking at school and work, care about health and appearance so they want healthy food that is convenient, easy to prepare and affordable. Have not had SPAM and currently think of SPAM as a crazy unhealthy meat in a can. What is the Single Most Important Thing This Advertising Should Convey? Fast food that s healthy, quick and easy Why Should People Believe This? Consumers should believe this because SPAM is a healthy affordable meat that is high in protein and has zero trans fat. SPAM leaves consumers feeling satisfied with their food choice

SPAM 10 that was easy to prepare. Consumers should believe this because SPAM is the versatile, American classic canned meat with a 72 year history, making it an American icon.

Print Ad Concepts

24-7-365 Healthy Home Cooking

More than high in protein with zero trans fat... SPAM is quick and easy to prepare.

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We know you like Lean, easy and available

And we re not talking about your date... SPAM is high in protein and easy to prepare.

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Don t let the price fool you- it s light on your wallet and your waistline.

Full of the protein you need, so you can Feel good about what you eat.

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Facebook Page
Original Content: The original content will include information that Average Joes are interested in that has to do with college life, such as: college survival 101, moving out 101, surviving with your new roommate, drink recipes, how to ask that cute girl from class on a date, how to lose the freshman 15 , hangover remedies, how to find cheap textbooks, how to maximize space in your small dorm room, how to put on a party for $25, stress relief 101, study tips to help you stay organized, how to stretch your money as far as possible, and how to get an internship. Food and SPAM related content will also be included, such as: grocery shopping check list, find your nearest grocery store, cooking tips for new cooks, easy meals in 10 minutes or less, SPAM party foods, try a kegs and eggs with SPAM party, information and sign-ups for the annual recipe competition, upcoming SPAM festivals and events, and SPAM on your college campus. Interaction The wall will provide a platform for sharing the following information: exciting party ideas, spring break news, the best dorm room decorating and space saving ideas, pictures of the best dorm room layouts, dating tips, video game reviews, interviewing tips and embarrassing party horror stories. Games will also be available on the Facebook page, as well as polls about partying and forums to discuss movies, music and fantasy football. Links  www.collegetips.com/college-guys/ (College guy tips and survival guide for male college students)

SPAM 14                 www.squidoo.com/how-to-get-a-girlfriend-in-college www.collegeboredom.com (Home of bored college students) www.bored.com (Games and links to check out when taking a break from homework) www.youtube.com www.collegehumor.com (Funny pictures, videos, articles and links) www.survivingcollegelife.com www.ratemyprofessors.com (Check out your professors before you register for class) www.sparkpeople.com/reource/fitness_articles.asp?id=629 (Dorm room workouts) www.yumyum.com (Student cooking ideas) www.dormcooking.com (Cooking in the dorm) www.collegecrunch.org (College life and career planning) www.collegeview.com/articles/CV/.../cheap-dates.htm (Cheap dates for college students on a budget) http://www.gradefix.com/ (Homework task manager that prioritizes assignments) http://www.collegewikis.com/welcome (Ask questions and share answer with students from your school) http://campusgrotto.com/ (A college blog covering top college news stories) www.spam.com

Ambient Marketing
As discussed in class, the purpose of ambient marketing is to capture attention and to engage consumers at a time and point when and where it is most relevant. With this in mind, SPAM will capture the attention of Average Joes with the theme The Spam attack that you actually like. SPAM will basically take over college campuses with advertising by placing SPAM at various touch points. The SPAM can and website address will be airbrushed on busy sidewalks all over campuses where Average Joes spend most of their time throughout the day. The purpose is to be present where the target audience is throughout their day. Therefore, SPAM peel off stickers will be placed on the back of chairs and desks in classrooms, in elevators in dorms and academic buildings, in dorm hallways and common areas, on the doors of bathroom and shower stalls, on bathroom mirrors and in cafeterias. Stickers will also be placed

SPAM 15 in libraries, in front of computer stations and on tables, in the form of placemats with various SPAM dishes on them. Flyers will also be distributed to Average Joes in their campus mailboxes, explaining the theme of the SPAM attack that you actually like, with a coupon on them good for one free can of SPAM. In order to get the free sample, Average Joes will have to log on to the SPAM website and enter a code in order to receive the free sample in the mail. This will encourage Average Joes to interact with the SPAM brand and to learn more about SPAM through the website. This ambient marketing will market around the target s lifestyle, capture their attention, generate awareness and create buzz for SPAM.

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References
ArticlesBase.com, . (2010, April 1). Trends for eating healthy foods. Retrieved from http://www.articlesbase.com/recipes-articles/trends-for-eating-healthyfoods-2082639.html#axzz0lshFoaHu Creamer, M. (2008). The ultimate survivor. (cover story). Advertising Age, (79(24), 1-30. Retrieved February 25, 2010 from LexisNexis Academic Database. Food Processing. (2007). Wellness foods trends 2007. Retrieved from http://www.foodprocessing.com/articles/2006/250.html?page=print Frye, T. (2010). Spam!. Pop-cult.com: your pop culture encyclopedia, Retrieved from http://www.food.pop-cult.com/spam.html Fusaro, D. (2009, June8). Food processing top 100 for 2009: licking the recession. Retrieved February 18, 2010 from http://www.foodprocessing.com/articles/2009/top100foodprocessors.html. Halperin, M. (2010). Creation trends: the raw goods. Retrieved from http://www.foodprocessing.com/articles/2005/422.html Laszich, R. & Burton, V. (2010). Top canned lunch meat brands, 2008. Market share reporter. Retrieved from Gale Directory Library, Roosevelt University Library: http://find.galegroup.com.exproxy.roosevelt.edu Lewis, G. (2000, September 22). From Minnesota fat to seoul food: spam in America and the pacific rim..Journal of popular culture, Retrieved from http://www.accessmylibrary.com/article-1G1-78411092/minnesota-fatseoul-food.html Marcus, M. (2010, February 18). Hormel fills up on Spam-Forbes.com. Retrieved February 21, 2010, from http://forbes.com/2010/02/18/hormel-foodscommodities-markets-equities-spam-unileveroutlook.html?partner=yahootix McLynn, K. (2009, December 2). NPD reports on how generational differences and aging dynamics will influence future of eating. Retrieved from http://www.npd.com/press/releases/press_091202a.html NDP Group, Inc. (2008, March 25). NDP study finds more men cooking than ever before. Retrieved March 20, 2010 from http://www.npd.com/press/releases/press_080325a.html

SPAM 17 NDP Group, Inc. (2010, January 26). Convenience drives daily food choices for most American adults- but in different ways, reports NPD. Retrieved March 20, 2010, from http://www.npd.com/press/releases/press_100126a.html Quantcast Corporation. (2010, February 28). Spam.com. Quantcast, Retrieved from http://www.quantcast.com/spam.com Toops, D. (2008, December 30). Consumer trends for 2009. Retrieved from http://www.foodprocessing.com/articles/2008/ConsumerTrends2009.html US Census Bureau. (2010). Population estimates. Retrieved from http://www.census.gov/popest/national/asrh/NC-EST2008-sa.html. U.S. Food and Drug Administration. (2010, March 10). Survey shows gains in food-label use, health/diet awareness. Retrieved March 20, 2010 from http://www.fda.gov/ForConsumers/ConsumerUpdates/ucm202611.htm