Benecol Spread and Media Planning
Group - 11
Shahwaz (031) | Karthik (089) | Bhavesh (141) | Shekhar (177) |
Nitin (215) | Mandal (300)
BENECOL AND ITS MARKET
Benecol was manufactured by Raisio and licensed to J&J in United States in
1999
Benecol contains ‘stanol esters’ which reduces cholesterol upto 14%
compared to 7.5% by ‘Take Control’ manufactured by HUL
Benecol priced at $4.99 for 5.9 ounce while Take Control was priced at
$3.79 for 10 ounce pack
Cheaper margarine products were available in the market at $1.19 per
pound
Margarine, cholesterol lowering market is around $150-$200mn and that of
‘Functional food’ is $17bn
KEY ISSUES WITH J&J BENECOL SPREAD
Narrow target segment &
Limited advertising Limited reach of different
Unproven market
budget of $2m media vehicles
potential
Slow sales of Benecol Increasing awareness of
whereas the category Benecol to target group
sales increased by 28% in and expand the
1999 proportion of target group
FREQUENCY RESPONSE FUNCTION
The frequency response function was changed
to S-shaped 3 to incorporate the fact that the
minimum threshold level of 3 ads is required
We assume that even with current strategy of
positioning it more as a drug and targeting
physicians; Product acceptance will be low in
early years in its already niche target segment
But once the product gains enough awareness
among its TG; word-of-mouth and ease of
further penetration from learning would show
increase the efficiency of the advertising
efforts in later years finally reaching to point
where response shows no further scope for
growth.
TARGET GROUP SELECTION
1.Large Population 1.Lesser Population
2.High income group 2.High income group
3.Age group is vulnerable 3.Age group is vulnerable
to Cholesterol to Cholesterol
4. High percentage of 4. Audience is Low, Low
Media Reach percentage of Media
Reach
1.Lesser Population
1.Large Population 2.Medium income group
2.Medium income group 3.Age group is
3.Age group is vulnerable vulnerable to Cholesterol
to Cholesterol 4. Media Audience is -
4. Media Audience -High Low
TARGET GROUP SELECTION
1.Large Population 1.Lesser Population
2.High income group 2.High income group
3.Age group is vulnerable 3.Age group is may be not
to Cholesterol at high risk to Cholesterol
4. High percentage of 4. Audience is Low, Low
Media Reach percentage of Media
Reach
1.Lesser Population
1.Large Population 2.Medium income group
2.Medium income group 3.Age group is
3.Age group is vulnerable vulnerable to Cholesterol
to Cholesterol 4. Media Audience is -
4. Media Audience -High Low
TARGET GROUP SELECTION
1.Population consists of
people from not so vulnerable
age group
2. Income is not defined
MEDIA VEHICLE INPUT- IMPACT WEIGHTS
Online Services - Microsoft 0
Better Homes & Gardens 1.25
Business Week 0.75
New York Times (Daily) 1
Wall Street Journal 1 Data has been taken from Exhibit 8:
TV Early News: 7:30p-8p 1.25 Indexes have referred to from Exhibit 8 with our focus
on 45+, men and women, TV, radio and magazines of
Radio: Rush Limbaugh 1
interest specially for homemakers, are assumed to be
Radio: Premiere AM Drive 0.75
more effective in reach.
CNN 1.25
A index of 100 or above has been taken as good.
Fortune 0.75
AARP The Magazine 0.75
Also for high income working class 35-45 years old part
Newsweek 1.25
of group 9 can be made aware of product need
Cooking Light 1.5
through TV and radio as their reach is high
TV Guide 1
USA Today 1.5
The New Yorker 1
Parade 1.5
TV Daytime: 9:00a-4p 0
MEDIA DECISIONS- AFTER INSERTION CHANGES
• Selection of channels with low to medium
CPM
• Based on the costs in thousand, the
impact factor and 1-issue reach we
selected the media vehicle to reach
maximum target within the constraint
budget of $2 Million
FINAL DASHBOARD AFTER SATISFYING ALL CONSTRAINTS
AND ENSURING MAXIMUM REACH POSSIBLE
BENEFITS OF THE PLANNING OPTIMIZER
Allows us to quantify many qualitative observations and requirements
The simulation based on optimizer allows to easily test different combinations of
media vehicles and efficiency of the same
Helps us to optimize the media plan within the given constraints
