Joeyn FYP: Situation Analysis

1.1 Introduction

Pepperidge Farm,one of the world-leading brands in cookies industry, rank in the top 2 percent of brands worldwide in brand equity. Well know with its delicious and high quality cookies. Margaret Rudkin, the founder of Pepperidge Farm and mother for three children, discovers one of her sons has an allergy to breads that contain preservatives and artificial ingredients. With that motive in mind, establish delicious whole-wheat loaf that contained only natural ingredients without preservative. Encouraged by her family and her son’s doctor, begins her business in 1937.
Begin with bread as the company main product and start interested in cookies bakery after a trip to Belgium and discover the delicious and delicate cookies. In 1955, Pepperidge Farm launches its first distinctive line European-style cookies. Maintaining the core value of producing good quality and good ingredients products, the company expands its product line from bread to cookies then to pastry and cracker. Some of them sell over 45 countries in the world.
Today, Pepperidge Farm sells over 12 types of cookies with different flavor, example of cookies are Chocolate Chunk Cookies, Soft Baked Cookies, Milano Cookies, Brussels Cookies, Geneva Cookies and Tahiti Cookies.Also more than 6 types of cracker such as Cracker Chips, Cheese Crips, Pretzel Thins and so on. All of them have different targeting market, and they also come with various packaging to suit different consumers requirement. Malaysia is still a young market for Pepperidge Farm because of its higher price also availability only at some hypermarket such as Jusco, but Malaysian getting more concern

with healthier and better quality food, premium cookies seem to have high potential in Malaysia’s cookies market.
Start from 1937 until today, Pepperidge Farm has changed time to time with the product they have. But they is one thing they never change, which is the commitment to the quality of their product. It’s a tradition for Pepperidge Farm began with their founder until today, it’s the proudly they going to continues to maintain. Also one of their brand image that bring their company go further, stronger and continue to sustain.

1.2 Problem Statement and Issues
Pepperidge Farm’s cookies are relatively expensive compared to other brands.This causes their cookies are less favorable to consumer. As the side affect, Pepperidge Farm is not well known in Malaysia. Besides that, lack of promotion and advertisement also one of the factor.The availability of Pepperidge Farm cookies only in few hypermarket also causes it not well know in the market.
Out at the market, there are many different brands selling similar product with different price, packaging, and flavor, such as Munchy and Julie’s. This causes Pepperidge Farm in a more difficult situation with their premium cookies.

1.3 Objectives and Aims 1.3.1 Objectives:

-‐ To study the market place of the product.
-‐ To create a series of advertisement such as billboard, bus stop, newspaper and etc.
-‐ To create promotional strategy such as TV Commercial, Online contest, and Exhibition booth.

1.3.2 Aims

- To re-introduce the product.
- To increase the popularity of the product

Chapter 2 PROJECT PROFILE

2.1 Product Name PEPPERIDGE FARM

2.2 Product Classification
Pepperidge Farm take the time to make every cookie, pastry, cracker and loaf of the bread the best way they know how by using simple, good ingredients like real fruit filling baked into cookies, 100% whole grains baked into Whole Grain breads, and real cheddar cheese baked into Goldfish crackers. It’s the little things that make simple food taste special, they belief in doing things right.

2.3 Product Range

2.3.1 Cookies
Somewhere warm, homey and delicious. You can visit those delectable places every time you bite into a Pepperidge Farm Cookie. The recipes have been crafted with care by real bakers, and are baked with an abundance of real, quality ingredients.
• Types: - American Collection Cookies - Milano Cookies
- Milano Melts Cookies - Milano Slices Cookies - Brussels Cookies
- Geneva Cookies
- Tahiti Cookies
- Pirouette Rolled Wafers - Cookie Favorites
- Sweet & Simple
- 100 Calorie Pouches
- Tim Tam Cookie

2.3.2 Crackers & Chips

Pepperidge Farm uniquely crunchy crackers are always baked and are seasoned twice for an explosive taste every time! Whether you want a buttery cracker to go with toppings, or a crunchy, flavor-packed snack all on its own, they have got the perfect cracker for you.

• Types: - Jingos! Crackers
- Cracker Chips
- Cheese Crips
- Pretzel Thins
- Wheat Crisps
- Golden Butter Crackers
- Cracker Favorites
- Harvest Wheat Crackers

2.3.3 Fresh Breads& Rolls

Pepperidge Farm Fresh Breads & Rolls rediscover the joy of a perfect sandwich, with fresh, soft and delicious bread baked with an uncompromising passion. All of the 100% whole grain breads are low in saturated fat, a good source of fiber, and certified by the American Heart Association.

• Types: - Goldfish Bread
- Whole Grain Breads
- Small Slice Breads - Farmhouse Breads - Variety Breads
- Deli Flats
- Bagel Flats
- Light Style Breads
- Very Thin Breads
- White Sandwich Breads
- Italian Breads
- Sandwich Buns
- Dinner Rolls
- RYE & Pumpernickel Breads
- Hearth – Baked Style Breads - Party Breads
- Breads For Weight Management

2.3.4 Fresh Breads & Rolls
• Types: - Stone Baked Artisan Dinner Rolls - Texas Toast
- Premium Toast & Bread - Garlic Bread

2.3.5 Desserts & Puff
• Types: - Cookie Cakes - 3-Layer Cakes
- Puff Pastry & Turnovers

2.3.6 Meals & Accompaniments
• Types: - Croutons - Stuffing

2.3.7 Goldfish Crackers
• Types: - Goldfish Crackers In Bags - Goldfish Crackers In Boxes
- Goldfish Crackers In Cartons
- Goldfish Crackers In Multi-packs
- Flavor Blasted Goldfish Crackers
- Goldfish Crackers In 100 Calorie Pouches - Goldfish Grahams
- Goldfish Crackers In Grab & Go Containers

2.4 Product Characteristics

2.4.1 Cookies
Pepperidge Farm Cookies is somewhere warm, homey and delicious. You can visit those delectable places every time you bite into a Pepperidge Farm Cookie. The recipes have been crafted with care by real bakers, and are baked with an abundance of real, quality ingredients.

List of Products:
i. American Collection Cookies - Chocolate Chunk Cookies

Pepperidge Farm 10

- Soft Baked Cookies

ii. Milano Cookies

iii. Milano Melts Cookies
iv. Milano Slices Cookies
v. Brussels Cookies
vi. Geneva Cookies
vii. Tahiti Cookies
viii. Pirouette Rolled Wafers

ix. Cookie Favorites

x. Sweet & Simple
xi. 100 Calorie Pouches
xii. Tim Tam Cookie

2.4.2 Crackers & Chips

Jangos! Crackers
Cracker Chips
Cheese Crisps
Pretzel Thins
Wheat Crisps
Golden Butter Crackers
Cracker Favorites
Harvest Wheat Crackers

2.4.3 Breakfast
Pepperidge Farm breakfast are always add a little spice to your morning with Mexican Scrambled Eggs on a whole wheat English muffin. Besides that, you can enjoy the satisfying taste of sweet cinnamon. Three of swirl breads are 80 calories per slice.

List of Products:
i. Swirl Breads

ii. English Muffins

iii. Bagels

2.4.4 Fresh Breads & Rolls
Pepperidge Farm Fresh Breads & Rolls rediscover the joy of a perfect sandwich, with fresh, soft and delicious bread baked with an uncompromising passion. All of the 100% whole grain breads are low in saturated fat, a good source of fiber, and certified by the American Heart Association.

List of Products:

Goldfish Bread
Whole Grain Breads
Small Slice Breads
Farmhouse Breads
Deli Flats
Bagel Flats
Light Style Breads
Very Thin Breads
White Sandwich Breads
Italian Breads
Sandwich Buns
Dinner Rolls
RYE & Pumpernickel Breads
Hearth – Baked Style Breads
Party Breads
Breads For Weight Management

2.5 Distribution

The Pepperidge Farm cookies are distributed indirect to the consumer where they have to purchase the products in some hypermarket. Below is the list of hypermarket:

• AEON• Cold Storage

2.6 Product Life Cycle

2.7 The Brand

Pepperidge Farm is a brand of cookies founded in Connecticut in 1937 by Margaret Rudkin, and since then has maintained a reputation for making great cookies. Besides that, Pepperidge farm is one of the few national companies that mass market distinctive cookies.
Nowadays, Milano cookies have primarily been marketed towards adults, as an indulgence food.The Milano cookie is a high-quality “sandwich” cookie, with two oval cookie wafers sandwiching delicious chocolate. The original Milano cookie featured dark chocolate, later versions are contained milk chocolate, or chocolate and various flavors.
Besides that, Pepperidge Farm’s also offeringsa spectrum of exciting and adventurous flavors for those who seek to snack, which include fresh bread and rolls, stuffing mix, ready- made crouton, and frozen puff pastry, as well as cookies and crackers, are also sold through Campbell’s.

2.8 Brand Image and Implication

Pepperidge Farm isa new brand that starts to emerge into Malaysia’s market. Currently Pepperidge Farm only available in a few hypermarkets. To bring up the brand, Pepperidge Farm need to improve it availability and to advertise in order to attract consumers.

2.9Strength and Weakness Strength

Strength

Fast and well-organized services:
The customer doesn’t have to queue up too long because of the cookies is ready in pack. It is very comfortable.
Variety of choices :
They have a lot of choices cookies.
Weakness

Lack of stock in Malaysia
Without their own counters

2.10Advantages and Disadvantages

Advantages	Disadvantages
Good Choice for urban lifestyle Simple and easy to carry around Light food but satiate Don’t have to queue up too long	Just few hypermarkets can buy. Lack of stock in Malaysia The variety of stock in Malaysia is less.

2.11Unique Selling Point (USP)

Pepperidge Farm is something about homemade freshly baked bread or cookies with simple and good ingredients that simply makes people smile.

2.12Promotional History and Advertising Schedule

April 17, 2013
Pepperidge Farm Honors U.S. Military with $25,000 Donation to Fisher House and Creation of Specially-Designed Packages of Goldfish® Crackers
March 18, 2013
Pepperidge Farm Launches Fun New Milano® Cookie Ad Campaign
January 28, 2013
Pepperidge Farm and Culinary Expert Gail Simmons Team Up on Winning Game Day- Ready Recipes
January 3, 2013
Pepperidge Farm Launches Jingos!TM Snack Crackers
November 19, 2012
Goldfish® Brand Celebrates 50 Years of Smiles with Macy's Thanksgiving Day Parade® Float and New E-Commerce Site

2.13Positioning Statement
The biggest commitment for Pepperidge Farm is quality. Pepperidge Farm focus in producing quality product with simple, natural and good ingredient.

Chapter 3 COMPANY

3.1 Company Overview

Pepperidge Farm was founded in 1937, in 1961 Pepperidge Farm was acquired by Campbell Soup Company. Where at that time, Campbell Soup Company was one of the largest and most highly respected food companies in North America.
Campbell Soup Company is a manufacturer and marketer of high-quality foods and simple meals, including soup and sauces, baked snacks and healthy beverages. Founded in 1869, the company has a portfolio of market-leading brands, including “Campbell’s,” “Pepperidge Farm,” “Arnott’s,” “V8” and “Bolthouse Farms.” Through its corporate social responsibility program, the company strives to make a positive impact in the workplace, in the marketplace and in the communities in which it operates. Campbell is a member of the standard & poor’s 500 and the Dow Jones Sustainability Indexes.

3.2 Business Description

When the company first establish, its main product is bread, in 1955 only the company start its business in cookies market. Even further later, in 1962 only they emerge into crackers market. Currently the products that the company sells worldwide are the cookies and crackers.
The company currently provides an array of popular products, including their Chunk and Soft Baked American Collection cookies, Milano cookies, Goldfish and Finz crackers. Most recently the company launches a new flavor of their popular crackers, the Goldfish crackers with Mac & Cheese. For food industry, innovation of new product is a never-ending process to fulfill customers’ requirement and to attract new customers.
The company also launches Fun New Milano Cookie Ad Campaign to bring up his company image and popularity. The Campaign is aim to bring the company image to the next extend, to enforce the product image the Pepperidge Farm selling in the society. The commitment to quality of Pepperidge Farm is again emphasize in the Campaign. Advertisement is one of the most effective tools to spread the name of company’s brand even to worldwide. Utilizing the use of social media can advertise the company even better also can get closer to the customers. That is why Pepperidge Farm also having a Facebook page, which actively in used to update customers with latest news of the company and to feedback to customers’ question.
To emerge into new market, Pepperidge Farm still maintaining its premium quality image even required selling at a higher price that decrease its price competitiveness. This shows the insistence of Pepperidge Farm in quality. This is also one of the marketing strategies for Pepperidge Farm.

3.3 Company History

Margaret Rudkin, a Connecticut housewife and mother of three young children, discovers one of her sons has an allergy to commercial breads that contain preservatives and artificial ingredients. So in 1937, she begins experimenting with baking her own preservative-free bread for her ailing son -- ultimately perfecting a delicious whole-wheat loaf that contained only natural ingredients. Encouraged by her family and her son's doctor, she begins a small business out of her kitchen selling her "Pepperidge Farm" bread to local grocers. Named for her family's farm in Fairfield, Connecticut, consumers recognize her homemade bread's quality and buy every loaf she baked.
In 1947, After World War II, and its associated shortages and rationing ended, Margaret Rudkin's plans for expanded bakery production could finally be realized. On July 4, her dream came true with the opening of the company's first modern bakery in Norwalk, Connecticut. New products such as dinner rolls, stuffing, and oatmeal breads are developed and tested, with Mrs. Rudkin always taking the first bite. Mrs. Rudkin clung tenaciously to her principles of quality.

3.4 Key People

-‐ Margaret Rudkin, Founder of Pepperidge Farm
-‐ Irene Chang, President
-‐ Steve White, Vice President
-‐ Suzanne Goodrich, Business Director
-‐ Theresa Choc-Lee, Frozen Bakery & Ecce Panis Business Director
-‐ Mark Fitch, Head Pastry Baker, employee for 12 years
-‐ Rich McCarthy, Head Cookie Baker, Pepperidge Farm employee for 32 years, retired
-‐ Neil Rodger, Head Bread Baked, Pepperidge Farm employee for 26 years

3.5 Location and Subsidiaries

3 Jalan Tiang U8/93, Seksyen U8,
Bukit Jelutong Industrial Park,
40150 Shah Alam,Selangor Darul Ehsan,

3.6 Brands, Major Products and Services

Brand: Pepperidge Farm
Major Product: Milano Cookies
Service:Management Service

3.7 Corporate Vision

Always baked with high quality ingredients.

3.8 Corporate Mission

Always remind themselves that all the cookiesare freshly baked bread or cookies with simple and good ingredients.

3.9 Company’s Current Promotional Strategy

-‐ Launches Fun New Milano Cookie Ad Campaign -‐ Pepperidge Farm new product

3.10 Product Sales’ History

I can’t get the information due to company confidential.

3.11 Current Marketing Objective

Long Term:
Would like to invite more distributors to explore the avenues for the success that may be available as a Pepperidge Farm independent distributor.
Short Term:
To keep the quality of all the products and increase the brand exposure thought the advertising and campaign.

3.12 Media Expenditure
The company use website and social network such as Facebook, Twitter to advertise their product.

Chapter 4 CONSUMERS and STAKEHOLDERS

4.1Current Consumers’ Characteristics

4.1.1 Demographics

4.1.2 Psychographics

4.2 Stakeholders’ Characteristics

4.2.1 Primary
-‐ EmployeesThey contribute to the company on a regular basis in exchange for compensation.
-‐ ConsumersThey spend money to buy products or goods, which produced by the company for the personal use.
-‐ DistributorsThey territory in which to sell and deliver Pepperidge Farm branded Bakery or Snacks products to retail stores or hypermarkets.

4.2.2 Secondary
-‐ MediaHelps to promote the brand or products of the company and create awareness among consumer too.

Chapter 5 INDUSTRY AND MARKETPLACE

5.1 The Industry

5.1.1 Definition of the Industry

Pepperidge Farm is a food industry that makes cookies and crackers that supply to over 45 countries. Any industry that involves processing of food can consider as a food industry. Food industry is one the largest industry out there because the demand of food is continuous since human need food to survive. Therefore, food industry is consistently growing industry. Food industry is one of the competitive industries, because there are so many food industries selling similar product out there. It is very subjective when come to selecting which product from which company is better because individual flavor is very depending. Hence, different company selling similar product will always have their own supporter.
Food industry also no longer new industry, it already come to a mature state that less fluctuation will happen in this industry. But continuous growth of this industry is ensured.

5.1.2 Shape of the Industry

Food industries are high volume and high demand industry. Most food industries are running mass production since the product they have might not change even for hundred years and the demand is high. Food industries have very wide market because food needed all over the world and no matter how old you are, all human needed food. The only way to expand food industries’ business is to make the product available to as many people as the company can. Even food industries are quite saturated, but if a new company with a product that is more favorable by most of the consumer out there, the potential for the company to growth bigger is possible. Therefore the potential for this industry are still high and the huge market is always there.
Besides that, the government control of the food process has increased with the passage of the new laws. From the research shown, consumers do not trust their food suppliers as much as they used to.

5.1.3 Development of the Industry

Food industry produce daily consuming product for the consumer, the growth and the sustainability of this industry is never ending. Food has been processed for a nearly as long as it has been used. As long as there is human out there, this industry is needed. To increase the business in this industry is to let the company’s product available to as many people as possible. The future of this industry is directly affected by the population of human being. As the population of human increase, most probably this industry will increase. The growth of this industry may not very high, but this industry is sustainable.
Even this industry is sustainable, but develop of new product are still required in order to attract more customer and to stay competitive. Currently the change of packaging in this industry seems to be more happening due to the change of life style of the community. Hence, the development in this industry is not only in the food itself, but also the way it being sold.

5.2 The Marketplace

5.2.1 Current condition of the marketplace

Current marketplace condition for food industries is quite optimistic. Human needed food no matter how poor they are. So there surely is a marketplace for food industries. Snack food is not a very expensive type of food. Targeting medium income personnel, which is majority at the market. Therefore, the targeting market is wide compare to other industry. Also the targeting age group also one of the widest, targeting people from age of 3 to possibly 80.
With that kind of market available, the potential growth of the industry seems to be better than most other industry. With the habit of human tends to looking for convenient available food and also type of food that easy to carry. Snack food market seem to have the good future and correct direction, which serve the exact purpose of easy to carry’s food to the consumers.
Current condition for food industries is not only competes against the food that they selling. Even the packaging of the food also becomes one of the competing factors. Compare to 10 years back, packaging of cookies only available in tin container or big plastic bag. But now, most cookies manufacturer start to pack their food into a small plastic bag which is easy to carry and for one time consume. This also reflects the habit of human as mention before.
Compare to last 10 years, nowadays most food manufacturer also will provide more than 1 variety of food to the market, they not able to survive with only one type and flavor of food. The strategy of producing different type of food to attract more and different consumer is always the direction of food industries.

5.2.2 Change in Marketplace

Positive:
- Development of the new target markets
- There will be more competition in markets bring the growth of the industry

Negative:
- There will be changing in lifestyle
- More competition will cause low price, that affect lee income profit.

Chapter 6 COMPETITORS

6.1 Direct Competitors

6.1.1 Oreo

Introduction:

Oreo is a United States style sandwich cookie. The Oreo biscuit was first developed and produces by the National Biscuit Company. Oreo is wildly popular, in fact , that it’s the world’s best-selling cookie. These days, it can be found in more than 100 countries. The original Oreo’s cookie-to-cream ratio 71 percent cookie, 29 percent, according to the time. Now oreo also come in varieties of flavor.

Strengths: Branding,partnerships with companies, distribution channelWeakness: Sales Declining,the products with fat and calories, some varieties and flavors can’t be found everywhere, limited ability to raise price due to competitor’s low price. Special Features: World’s best selling Cookie, various selection of flavor, can be found easilyAdvertisement: TV Commercial, Website, Poster, Social Network

6.1.2 Julie’s (Sandwich)

Introduction:

Julie's commitment to "bake better biscuits" is targeted on quality food safety and hygiene, by using selected premium ingredients free from harmful artificial additives and coloring. It has always been the company's prime interest to build long-term consumer confidence and trust in its products, comprising a variety of crackers, cream sandwiches, wafer rolls, waffles, wafer and cookies
Product Features: Convenient packaging
Advertisement:Website, New PackagingStrength: It is distributor to everywhere, easy to buy

6.1.3 Munchy’s (Lexus)

Introduction :

Today, almost 60 countries are taking a big bite out of Munchy’s, Malaysia numero uno homegrown biscuits, wafers and water sticks. Munchy’s biscuit connoisseurs grew up on the heavenly smells of freshly-baked handmade biscuits. Munchy’s Lexus are delectable coated biscuits that destined to win over customer’s heart with its chocolaty richness. Only available in one flavor – chocolate. This is because chocolate is the best ingredient for love. Lexus Choco Coated Cream Biscuits are the best shared with customer’s loved ones.

Special Features: Extra Chocolate chips, Various of flavor
Advertisement: Booth, Poster Social Network
Strength: Various of product, Available in all hypermarkets, supermarket, convenience store and markets.

6.2 Indirect competitors

6.2.1 Hup Seng

Introduction :

Hup Seng is one of the oldest biscuit companies in Malaysia. The company is 51% controlled by the Kerk family, including Kerk Choo Ting, former deputy president of Gerakan and former deputy agriculture agro-based industries minister. Hup Seng is the market leader in crackers, in particular cream crackers which account for about 40% of sales and other crackers like sweetened crackers account for another 20%.Hup Seng crackers consist of mainly raw materials (flour, sugar and palm oil).

Advertisement: Social Network, WebsiteStrength: Affordable price, always in good qualityWeakness: Lack of flavor to choose, no stand alone store, lack of promotions and events.