EZPB

Marketing 300 Project

Team #7

Dave Bissinger Tim Cahill Jessica Clark Meaghan Cleary Steve Cullen

Table of Contents: Cover Page 1 Table of Content. 2 Executive Summary.... 3-4

Industry Revenue.4-7
Product Profile...7-9 Statement of Marketing Objectives 910 SWOT Analysis .10-11 Market Segmentation/Target Market Strategy 12-14 Market-Product Grid .14-15 Environmental Factors 15-18 Marketing Strategy 19 Conclusion .20

Recommendations ...21 Works Cited ..22

Executive Summary Imagine the process of making a peanut butter and jelly sandwich. Now reflect upon the thought of effortlessness that would occur when not having to get out silverware, spreading the peanut butter and jelly, and then putting the containers away. This notion is tactfully accomplished by the company EZPB, who aims to give peanut butter and jelly lovers an easier and faster way to making one. EZPB offers consumers the same great experience and the same delightful taste that you would get when using peanut butter and jelly out of the jar. EZPB is peanut butter and jelly mixed together in the form of a

cheese slice that can be peeled out of a wrapper and placed on the bread without the use of silverware. EZPB was first thought of by Steve Cullen when he was in grade school. He always liked to make peanut butter and jelly sandwiches, but would always make a mess. He knew there had to be an easier way to make them and after serious thought, he wondered why peanut butter slices couldnt be packaged like cheese slices. When he was in fifth grade he presented his idea to the class. Unfortunately, his teacher thought the idea was not worthy of the classes time. Its always been a dream of his to create this product. When he was in college, he discussed this idea with Tim Cahill, who had just told him a story about a roommate that came home one night and decided to attempt to make a peanut butter and jelly sandwich. Tim woke up the next morning to find peanut butter all over his kitchen. After the two talked about this, they developed a plan to create EZPB. Beginning in 1997, the two began their development of the product. From there, the two teamed up with Jessica Clark, Meaghan Cleary, and Dave Bissinger to create a new and innovative product. What makes EZPB such an exciting product is the lack of effort and time that it alludes to when making a peanut butter and jelly sandwich. Without having to use utensils, it makes making a peanut butter and jelly sandwich quicker and easier. It is also all-natural and therefore a very healthy and energizing product. EZPB reaches out and

helps all different types of people. Working mothers who dont have time to make their childrens lunches, college students who might not have a kitchen accessible, and cafeterias that need a faster way to sell one of their most purchased items all benefit from this new product. The mission of EZPB is to offer a high quality, healthy, energizing, and easy alternative to the traditional peanut butter and jelly sandwich. At a competitive price that satisfies customers, EZPB will also establish a positive and efficient environment for all employees. Industry Profile The peanut butter industry is not just measured by the production of peanut butter; the market also includes any sort of establishment that deals with the production of salted, roasted, or canned nuts, nuts that are cooked or dried, or processing grain or seeds. This market alone is a multi-billion dollar industry that is comprised of more then 190 different companies and producers. It is extremely large and the money is very promising due to the regularity of the products use. The industry's revenue for 2007 was approximately 7 billion US dollars, with an estimated gross profit of 55%. The importing market was valued at 163.1 million US dollars from 55 countries. The industry also exported 381.5 million US dollars worth of merchandise to 117 countries. Adding import value and subtracting

export value from the industry's shipment value, the total domestic demand for the industry in 2007 was 6.8 billion US dollars.

United Trends Year States Number of Establishments 2004 191 2005 192

2006 193

2004 11,228 Employment 2005 11,219 2006 11,363 Numeric Change from Previous Year Percent Change from Previous Year 2005 -.1% 2006 1.3% 2005 -9 2006 144

Wages

Year

United States

2004 Total Payroll Wages 2005 2006 2004 Average Annual Wage 2005 2006 2004 Average Weekly Wage 2005 2006

$386,238,940 $396,548,987 $412,416,376 $34,400 $35,346 $36,296 $662 $680 $698

The peanut butter industry is an important processed food industry in the United States. Approximately fifty-three percent, of all domestically produced peanuts, are used in the production of peanut butter. In 1993, the per consumer consumption of peanut butter in the United States reached a high of 3.3 pounds per year. In 1990, the top three firms were Procter and Gamble Co., ConAgra, and CPC International Inc. They manufactured the national brands of peanut butter: Jif, Peter Pan, and Skippy. This accounted for 75 percent of the market share. A 1996 survey, by Gallup Organization, found that 63 percent of the households buy the same brand of peanut butter every time. Thus, there is brand loyalty in the peanut butter market. However, by 1995, the share of the top three brands lowered to about 70 percent, where Jif, Peter Pan, and Skippy accounted for 31.6 percent, 19.6 percent and 20 percent of the market share. The rest of the market is shared by fringe suppliers who produce generic, regional

or store brand peanut butter. These regional brands have a production capacity of 32 million pounds per year, and that national brands have production capacity larger than that. The competition in this market is very tight. These three powerhouse companies in this market make it hard to penetrate with out uniqueness to the product. Companies like Smuckers have come up with interesting products like pre-jarred peanut butter and jelly already together in the bottle for easier use and lower costs than buying both products separately. They have also generated the idea of Uncrustables, which are pre-packaged PB&J sandwiches with out crusts that are kept frozen until eaten. Another company very similar to ours is called P.B slices, which sells pre-packaged slices of just peanut butter, much like the appearance of Kraft singles. Product Profile EZPB saw a need that was not yet met in the peanut butter and jelly market. Todays world is based on speed and how fast we can access a thing we need and thats what it delivers. With our product, you can make yourself a peanut butter and jelly sandwich in less than 15 seconds if you desire. Also, we noticed that peanut butter and jelly sandwiches tend to cause a big mess, so we altered the process to just one slice placed on a piece of bread and ready to go. At EZPB, we took a look at this advancing industry and decided to take a step in a direction not yet taken by any other company. We saw that the whole

process of making a peanut butter and jelly sandwich was really more time consuming and messy then it needed to be. If making a regular sandwich with the usual products, you can create nothing more than a time consuming disarray of dirty silverware, dishes, and even yourself in some cases. We found the need to create our product to reduce the clutter, time, and cost of making old fashion regular peanut butter and jelly sandwiches. So we came up with the pre-made peanut butter and jelly slices that are not only delicious, but healthy as well. Our product is more filling then P.B slices, fresher than Uncrustables, and not as messy as the already jarred together PB & J. Today our product is made from fresh peanuts shipped from South America, and the jellies are made out of fresh fruits from the best suppliers in the nation. EZPB supports local businesses and suppliers for all of its flavors. We offer Chocolate, banana, apple, raspberry, strawberry, marshmallow, and grape. We also manufacture and sell our own peanut butter, which is something that no other peanut butter companies do. We oversee every step in our production to ensure the quality of our product. Our factories are located in San Diego, Boston, and St. Louis. These locations in the east coast, west coast, and midwest allow us to ship our product more efficiently and permit us to keep up with the constant demand for EZPB. All of our factories are up to the regulations standards of the United States government and undergo inspections weekly.

Each product comes in a pack of 20, 50, or 100. The 20 slice pack sells for $4.99, the 50 for $7.99, and $14.99 for 100. EZPB is a healthy treat for anyone of any age. Our all natural preservatives and great quality of product make our slices taste fresh even months after they have been prepared.

Nutritional facts- Per serving- serving size = 1 slice = 3tbs. Serving Size 3 Tbsp. (53g) Calories 240 Calories from Fat 110 Amount/Serving Total Fat 13g Saturated Fat 2.5g Trans Fat 0g Cholesterol 0mg Sodium 140mg Total Carbohydrate 24g Dietary Fiber 2g Sugars 21g Protein 7g Vitamin A Vitamin C Calcium Iron %DV * 19 % 11 % 0 6 8 8 0 0 2 4 % % % % % % % %

*Percent Daily Values (DV) are based on a 2,000 calorie diet.

Statement of Marketing Objectives

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EZPBs marketing strategy is to present the advantages of our product in the billion dollar peanut butter and jelly industry, stressing our points of difference: healthiness, convenience, low cost and great taste. The array of options in flavors, packaging and nutritional value we produce will target a wide market creating immediate awareness. Below is a brief overview of our marketing strategy. New Customers: By providing a focused assortment of new and convenient options for consumers, EZPB will spark interest among various segments in the peanut butter industry. 63%, of this billion dollar industry, has been shown as brand loyal consumers. We hope to break into the 37% who have not yet made a brand commitment, while creating curiosity in the brand loyal consumer segment as well. By stressing our points of difference, we will take brand loyal customers from other companies. Also, by offering coupons, free samples, and give--aways we will build customer loyalty and word of mouth. New Markets: Within 2-3 years EZPB assortments will expand to corporations who sell products in bulk to school cafeterias ranging from elementary to college level. This is a fragmented, lucrative market with considerable upside potential. We also plan to partner with health food grocery stores to sell our product nation-wide. These stores include Trader Joes and Whole Foods New Products: Slices will be launched in a variety of flavors and packaging alternatives. Some new flavors are peanut butter and

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chocolate, peanut butter and different flavored jelly, and marshmallow fluff. As sale revenues increase, we will phase in even more varieties using the consumers as our development team. We will also appeal to children by making our slices into shapes, Disney characters, and animals. Product Placement: The nutritional appeal of our organic product combined with unique packaging alternatives and traditional product placement should appeal to retailers looking for new and innovative placement opportunities (product section, snacks, cash wraps, etc.).

SWOT Analysis You will find in Figure 1, critical internal and external factors describing the marketing opportunities of the EZPB slices since the company began.

Figure1. SWOT Analysis for EZPB Internal Factors

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Strengths: Weaknesses: - Executive team of EZPB has a - The more flavors we create, similar lifestyle from growing the more production costs will up in a fast paced and efficient increase environment as that of its - Creating shapes in the slices primary target markets. for children will increase price - Organic Peanuts and fresh fruit of production. provide for healthy eating - New technology and production habits with same great taste. methods will necessitate - EZPB has been able to create greater training and back-up curiosity among 3 dominate needs. target markets - Our ability to produce options keeps more consumer interest and needs met. - Our new production technology will enable us to mass produce products more efficiently and quickly than our competitors. External Factors Opportunities: Threats: - Creating a healthy product - Established competition coming that provides options in flavors up with similar products using and nutritional value will healthy and efficient as its intrigue new consumers points of difference as well. - Healthy ingredients will allow - Large companies who have us to break into the diet brand loyal customers providing consumer. the market with similar products. - Being a new company will provide us the chance to - Switching brand loyal establish excitement. consumers to a smaller and newer company - Capacity to market our product outside the sandwich - Rising material, production, and industry, and provide new shipping costs for a new, yet ideas, such as bananas with diversified company. EZPB slices will be a real competitive advantage. - Providing fun shapes that will interest young children will be novel and exciting.

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Market Segmentation/Target Market Strategy The trends in todays sandwich market are based around the idea that it needs to be fast, convenient, and pleasing to all. Because of this, recent studies have shown that sandwiches have become a household dinner item for fast-paces, busy families. A study released by the NPD Group, which researches consumer trends, says more than one in nine dinners at home is a sandwich (Bleimes 1). Not only are sandwiches served for dinner, but they are the main dishes in kids lunch boxes. Peanut butter and jelly sandwiches have been a crowd favorite since it was invented in the 1920s and the fact is still true today. Eighty percent of moms and dads rely on peanut butter sandwiches for their kids lunch boxes, finds a Harris Interactive poll of 2,066 adults (Moulton 1). The sandwich market is confined to people who have the need for a fast, convenient and tasty treat to keep them energized and healthy. We found that the markets with the most need for this product are busy college students, working parents, and cafeteria workers trying to make mass amounts of sandwiches. We feel that these target markets are similar because all have the same need. Therefore, we grouped our buyers into one market- those who need speedy results. EZPBs point of difference are that our products are faster, cheaper, healthier and more convenient for customers. Its healthy, energy boost allows customers to continue in their day effectively.

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While some products are very processed, EZPB is homemade and therefore has better quality overall. It not only tastes better, but is better for you. It uses organic peanut butter and real fruit jelly to ensure the great taste and nutrition. Therefore, all products used to make EZPB are all-natural. The product is also designed to entice children with a variety of different shapes, such as Disney characters and animals. Working parents and busy mothers rarely have time to make lunch for their children. By using our product, all they need to do is take an EZPB out of the refrigerator and put it on a slice of bread. The steps are so easy and it could cut 5-10 minutes from their morning to take for themselves. The goal of the product is to make life easier on parents and to satisfy the childrens need. The cost is a great deal less than buying both jars and of peanut butter and jelly and is therefore affordable to almost any familys income. College students rarely have the time or energy to take out peanut butter, jelly and bread and make a sandwich. This product is so easy that they can make it on their way out the door to their classes, sports, or any activities. It is also a healthy way for them to stay energized and full through out the day. Many full-time students rarely have time to grab lunch or dinner. Therefore, they can pack their own lunches in a convenient and fast manner. The product is also inexpensive and will fit well into a college students budget.

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Cafeterias are responsible for making mass amounts of food for children everyday. They have a limited time to make the dish for the day. By using EZPB, the cafeterias could cut their lunch preparation time more than half. They will also be relieved to know that the children are having a healthy and well-made product, instead of the fries, burgers, chicken fingers, and pizza sold in most cafeterias. It is also beneficial to cafeterias because it will save a great deal of money. When cafeterias buy EZPB in bulk, they save more than 50%, than buying jars of peanut butter and jelly. The market segment is organized by the psychographic customer characteristic. In other words, these three target markets have a similar lifestyle. Each market has the need for a fast, convenient and desirable product. This is what these markets are looking for. Because they have the same lifestyles, these markets can be segmented in the same way. The product is grouped as a way to have a fast, tasty, and easy lunch. College students can make the snack on the go, busy parents can make a fast lunch for their children, and cafeterias can cut their service time in half. However, it is also a quick way to eat breakfast. Many can use the product in the morning by putting the slices on a piece of toast, bagel or English muffin. The result is a fast, easy and delicious snack that can be made on the go! Using EZPB, is also a great way to serve dinner. Many college students need a quick dinner before

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or after school activities. Working moms may need to make an immediate dinner for their children before sporting events, music lessons, or before their homework. It is also a great way for cafeterias to make a fast dinner for after school care children.

Market-Product Grid: Products: EZPB Meals

Target Markets College Students Working parents Cafeterias

Breakfast 1 3 0

Lunch 3 3 3

Between Meals 3 1 3

Dinner 1 0 0

After 2 0 0

(0= No market, 1=Small market, 2=Medium market, 3=Large market)

The market size for each target market is extremely large. A great deal of working families exists across the United States and will definitely use this product to make their lives easier. Also, by selling EZPB on college campuses, we will expand to a larger market. By selling the product to cafeterias all over the country, we will hit a major market. We also expect this product to take off once word of mouth and customer satisfaction increases. There is a great deal of competition out there, but we feel since our product is less processed and healthier, that our product is superior. We will continue to strive for new customers while also maintaining our target markets. We will market to working mothers,

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on-campus students and public school boards. Our marketing campaign consists of giving free giveaways and trials for families, students, and cafeterias. We plan on having workers in super markets giving away free samples. Therefore, parents will try our product and buy it for their childrens lunches. For college students, we plan to have free samples on college campuses. And also give them to school cafeterias to try them on their customers and students. This will spread word of mouth and make our product more successful. Through the visual appeal commercials will be used to play on family networks to entice kids and parents to buy the products. Environmental factors Societal: Peanut butter and jelly sandwiches continue to be a staple in the American diet. Our new product idea was generated through our own and others' experience with a common problem among our target market; the mess and inconvenience of making peanut butter and jelly sandwiches. College students, especially late at night, create messes trying to use ingredients such as peanut butter and jelly. Young children trying to help prepare their own food also face similar problems their parents would like to avoid. Economic: The economy is in a slump so people are more reluctant to use their income on new products that may or may not provide a benefit to them. Instead they may stick with tried-and-true alternatives. This may present a marketing problem until our customer 18

base is aware of our more convenient alternative. Our product is relatively inexpensive compared to its alternatives; this could have a positive sales impact. Technological: The manufacture of peanut butter has remained relatively unchanged, since 1922. More jelly manufacturers are starting to use sugar alternatives for a healthier product, but since EZPB is natural and organic we will use real fruit sugar instead of a substitute. Competitive: Our competition would mainly be companies that process peanut butter and jelly individually. The leading American seller of peanut butter is Jif, made by the J.M. Smucker Company. J.M. Smucker is also #1 in sales of jelly products. Regulatory: We would have to abide by the FDA regulations regarding food processing. Peanut butter: "Such seasoning and stabilizing ingredients do not in the aggregate exceed 10 percent of the weight of the finished food. To the ground peanuts, cut or chopped, shelled, and roasted peanuts may be added. During processing, the oil content of the peanut ingredient may be adjusted by the addition or subtraction of peanut oil. The fat content of the finished food shall not exceed 55 percent when determined as prescribed in 'Official Methods of Analysis of the Association of Official Analytical Chemists,' 13th Ed." This basically means we must use 10% or less of seasonings and stabilizing ingredients. This should not be a problem since our peanut butter is allnatural. Jelly: "The mixture referred to in paragraph (a) of this section

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shall contain not less than 45 parts by weight of the fruit juice ingredients as measured in accordance with paragraph (d)(2) of this section to each 55 parts by weight of saccharine ingredient as measured in accordance with paragraph (d)(4) of this section. " This means the amount of sugar substitutes in our product may not exceed 55%. Once again, since our product is natural artificial sweeteners will not be a problem. Marketing strategy Product Strategy: We will market EZPB as an alternative to peanut butter and jelly. It is easier to prepare food and more convenient for busy schedules. Our product is made using organic peanuts processed with natural fruit jelly and cooled in order to keep its shape until actually used. Flavors include banana, strawberry, grape, marshmallow fluff and chocolate. Price Strategy: Our price will be discounted compared to buying peanut butter and jelly products individually. This is more cost effective for consumers since this product combines two into one single product. We will use a penetration pricing strategy because our product is not well-known. We will keep our price low during early phases of our product's life cycle in order to sell a higher volume and increase interest in our product through word-of-mouth. Pricing: $4.99 for 20 slices, $7.99 for 50 slices, and $14.99 for 100

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slices. Promotion Strategy: We will market the product to our targeted market segments, especially college students and mothers with young children. Our promotional strategy will include free sample giveaways in stores and on campuses in order to generate interest in purchasing our product. We will also use our slogan "No mess, no stress" to make consumers aware of the two major points of difference between our product and our competitors. To generate interest among children, EZPB will incorporate shapes from children's television programming onto our product; for example, putting shapes of Disney characters onto our slices. Place Strategy: We will connect our manufacturing centers to large family-oriented retailers such as grocery stores. To build interest among college students, we will sell to retail outlets such as the Marianist emporium on different campuses. We will also market to health food stores such as Trader Joe.

Conclusion The peanut butter and jelly sandwich is a world-wide treat that has been around since the 1920s. For over 80 years now, there has been the traditional way of eating the sandwich involving spreading peanut butter and jelly on two pieces of bread. The sloppy way of

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making the sandwich is the most famous way, but it took time, made a mess, and required a utensil of some sort. In the fast pace world that we live in, there is a necessity for less time consumption and more convenient products. EZPB is an easy, healthy, energizing, and high quality alternative to the sandwich. EZPB plans to make a substantial difference in the billion dollar peanut butter/jelly market. The product gives all people an easier and healthier option while still satisfying their desire for a delicious peanut butter and jelly sandwich. EZPB makes a peanut butter and jelly sandwich more convenient for the on the go world we live in today. Recommendations As a mom with 3 kids, life becomes so much simpler just by saving a few minutes everyday, its a healthy sandwich and my children cant tell the difference! ~ Sandy Cohen, soccer mom Never underestimate a 5th graders creative mind, what might seem like a doubtful idea, could be the next billion dollar invention ~ Mrs. Drofnalb, 5th grade teacher Ever since I started using EZPB, I have eliminated messes in the kitchen, and my diet has improved immensely! It is the perfect meal when I wake up five minutes before class and need a quick bite to eat ~ Patrick Bateman, student at Ohio State University. My kids always want to help out, but every time they made their own sandwiches they would end up making a mess all over the kitchen. Now I just hand them the bread and a stack of EZPB and were both happy! Cathy Smith, Model, mother of three children. When I started my new diet, I thought I would have to give up one of my favorite foods peanut butter and jelly. It was just too high in sugar and fat. With EZPB, I can still enjoy my favorite snack without worrying about gaining weight.-Marcus Halberstrand, Business Sales Assoc.

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Works Cited Bleimes, Ashley. "Sandwiches: They'Re What's for Dinner." USA Today os (2006): 8. Academic Search Complete. EBSCO. Roesch Library, Dayton. 2 Apr. 2008. Deodhar, Satish Y., and Stanley M. Fletcher. Degree of Competition in the U.S. Peanut Butter Industry: a Dynamic Error Correction Approach. University of Georgia. 1998. 1-24. 2 Apr. 2008 <http://www.agecon.uga.edu/publications/fs98-01.pdf>. Moulton, Sarah. "PB&J with a Twist." Prevention 52.2 (2006): 52. Academic Search Complete. EBSCO. Roesch Library, Dayton. 2 Apr. 2008. Owen, Thomas. "When PB First Met J." Christian Science Monitor 90.90 (1998): 9. Academic Search Complete. EBSCO. Roesch Library, Dayton. 2 Apr. 2008. Roasted Nuts and Peanut Butter Manufacturing Industry in the U.S. and Its Foreign Trade. Marketresearch.Com. Supplier Relations US, LLC, 1997. 1-166. 2 Apr. 2008 <http://www.marketresearch.com/product/display.asp?productid =1652567&xs=r&SID=73976871-412933886485757657&curr=USD&kw=&view=toc>. Salaries and Wages Roasted Nut and Peanut Butter Manufacturing. Market Research and Statistics. Canadian Industry Statistics,

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2004. 2 Apr. 2008 <http://www.ic.gc.ca/canadian_industry_statistics/cis.nsf/IDE/cis3 11911wa

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