Johnson&Johnson

Relevant Market

Target Market – Research shows that adult females consume 44% of the RTE caramel popcorn sold. 54% of heavy caramel popcorn users and 60% of heavy Cracker Jack users reside in households w/ two or more members. 50% of heavy CJ users and 42 % of caramel popcorn users are in households with children under 18. Four out of 5 users consume RTE caramel popcorn at home. Cracker Jack also enjoys a 97% brand awareness among persons between the ages of 15-60

An objective for increasing primary or secondary demand – The new ventures division of Frito-Lay’s main goal is to grow its sales incrementally, and they will choose the alternative that best accomplishes this goal. If they purchase Cracker Jack, they will be increasing primary and secondary demand by planning to offer a Direst Sales Delivery sales force to sell and distribute Cracker Jack, thereby increasing the availability of the product. They will also accomplish this by offering new brand extensions. Lastly, if they purchase Cracker Jack, they plan to increase focus on brand development and consumer advertising for the first three years, which will increase both primary and secondary demand.

Market Attractiveness - The ready-to-eat (RTE) caramel popcorn market is a 167.3 million dollar industry in manufacturer dollars. Current sales (1996) for Cracker Jack are 43.5 million, 26% of the caramel popcorn market. From 1993 – 1996 there was a steady annual sales increase. However, from 1995-1996 the RTE caramel popcorn market experienced a 6.2% decline in retail sales. According to Industry analysts, the caramel popcorn market is generally considered as “under marketed”. A lack of a high volume of competition, 167.3 million in sales, and an under marketed category makes for an attractive market, even considering the recent decrease in the total market sales.

Brand Positioning

Cracker Jack Positioning Statement – “Cracker Jack, the sweet and crunchy fun snack you remember, has...