Promotional Licensing Partnerships

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Frozen Snack Food - Targeted Advertizing

After an extensive search through market research sources, third-party ad agencies, and news articles, there was no information on brands that have successfully launched promotional licensing partnerships that target tweens. As observed, most of the brands in the market are not much into promotional licensing advertisements, and they are going with the same trend of advertisement and promotions. However, we found two examples of brands that have successfully launched promotional licensing partnerships without specifically targeting tweens.

HELPFUL INSIGHTS

EXAMPLE #1: KRAFT HEINZ IN PROMOTIONAL LICENSED PARTNERSHIP WITH OPRAH WINFREY

  • Kraft Heinz launched its Frozen Pizza range featuring a cauliflower crust and is in partnership with Oprah Winfrey for its promotional licensing. It used the tag line, "The O' That's Good! Frozen Pizza."
  • The O, That's Good! brand was inspired by Oprah's love for nutritious, great-tasting food.
  • "Frozen Pizza is the newest item in the 'O, That's Good!' line marketed by a joint venture between Winfrey and Kraft Heinz.

COST OF PROMOTION: N/A

PERFORMANCE METRICS:

  • According to Christopher Urban, head of mealtime stories at Kraft Heinz, Frozen Pizza has about $4 billion in annual sales.
  • According to Nielsen, annual US sales of frozen foods are $53 billion industry, and Kraft Heinz is a part of it.
  • According to RBC Capital Markets analyst David Palmer, the frozen snacks category makes up 35% of the frozen-food aisle and its sales growth of 3% is the highest in five years.
  • Compared to other packaged foods, there have been growth pockets in frozen food for years, and it is accelerating as consumers now freezing as a way to preserve food with fewer downsides.

USE OF DIGITAL MEDIA:

EXAMPLE #2: HOSTESS TWINKIES IN PROMOTIONAL LICENSED PARTNERSHIP WITH ROVIO ENTERTAINMENT

  • Twinkies is one of the products taking part in the collaborative gaming and sweepstakes campaign with Angry Birds.
  • The product is one of the famous sweet snacks stuffed with creamy filing staple in children's lunchboxes. It is a frozen snack that has a shorter shelf life.

COST OF PROMOTION: N/A

PERFORMANCE METRICS:

  • Hostess Twinkies are seeing record sales at Walmart.
  • Hostess' sales to Walmart hit an all-time high in the first quarter of 2019.
  • The company's shipments to retailers beyond the food, drug, and convenience stores segment accelerated dramatically in the first few weeks of Q2 2019.

USE OF DIGITAL MEDIA:

  • The digital media sites, including Facebook, were used to promote Hostess Twinkies with promotional licensing partnerships with Angry Birds.

RESEARCH STRATEGY

After exhaustive research, information regarding examples of brands that have successfully launched promotional licensing partnerships that target tweens is not available. The available information was specific to brands that have successfully launched promotional licensing partnerships, but there was no mention of tweens as the target audience. As observed, brands have not focused on targeting any specific audience but the general audience.

We began by looking at the market reports on the frozen snack market in sources such as MarketsandMarkets, GrandView Research, and Transparency Market Research. The idea was to look for information on the leading brands in the market, which would then be researched on to see if they meet the criteria. The sources enumerated information regarding the frozen food market by product, type, consumption, distribution channel, and region. The sources made mention of the key players in the frozen food market, but there was no information specifically on the key players in the frozen snacks market. Thus, we checked each player to see if they also produce frozen snacks. Beginning with the key players in the North American market such as General Mills Inc (US), Conagra Brands, Inc. (US), Grupo Bimbo SAB de CV (Mexico), and Kraft Heinz Company (US), we looked for their promotional licensing partnerships. While we found that Kraft Heinz has a targeted promotional partnership with Oprah Winfrey, there was no information regarding the target audience.

Next, we broadened our search to include the key players at the global level such as Nestle SA (Switzerland), Unilever (the Netherlands), Associated British Foods plc (UK), Ajinomoto (Japan), Vandemoortele NV (Belgium), and Lantmannen Unibake International (Denmark). We found that Nestle SA has a range of frozen snacks, but does its promotions through inbuilt brands. For example, Nestlé's frozen prepared dishes are marketed mainly under two brands, Stouffer's, in the United States, and Maggi, in other regions of the world. Thus, the approach didn't yield relevant results.

Next, we looked for players in frozen snacks industry that are involved in the promotional licensing partnerships in through media reports and articles in sources such as PR Newswire, AB Newswire, HuffPost, BakeryandSnacks, USA Today, Chicago Business, and Onlymyhealth. We checked these articles for information on any brands that have successfully launched promotional licensing partnerships that target tweens. Although the articles had information such as Kraft Heinz's collaboration with Oprah Winfrey, which we already found, as well as Hostess Twinkies' partnership with Rovio Entertainment, there was no information regarding the target audience. While the product lines of Kraft Heinz's pizza and Hostess Twinkies' sponge cake are the favorite choices of kids, there was no information on whether the promotions specifically target tweens.

As there was no pre-compiled information available, we opted to attempt a triangulation. We tried to find the information through third-party sources like advertising agencies in North America such as Ad Age, AdForum, and BBDO Worldwide Inc to see the latest ads that have been showcased by the frozen snack brands so that same can be used as a proxy and promotional licensing can further be checked. While there was information about the latest ads, there was no mention of promotional licensing advertisements.

Further, we expanded the scope of our search and looked for information on tween-targeted ads within the last ten years. We searched through the archived websites of Kraft and Twinkies to see whether they had been into promotional licensing in the past ten years. However, no information was available in the archived links. We also checked old sources and news articles in sources such as NYTimes, Hubspot, and eMarketer, to no avail.

We also expanded the regional scope from North America to the global level and checked for global reports. However, information regarding general ads was mentioned with no specific focus on promotional licensing advertisements.


Sources
Sources

Quotes
  • "Rovio Entertainment has reported US$80 million in third-quarter revenue, representing a small 0.5% increase over the same quarter a year ago."
  • "good news for the Angry Birds IP owner, since its Q2 revenue plummeted 17%, with significant declines in its Brand Licensing segment"