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Planters Nuts Case Instructions

by | Jun 5, 2022 | Marketing | 0 comments

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Planters Nuts Case Instructions
There are three questions to address that relate to prospective marketing actions for the
company.
A) Is the current positioning and targeting appropriate or should it be modified?
As noted in the case:
We have followed the historical Kraft philosophy of really focusing on one target market and
trying to “own” that segment. This target has been 35- to 65-year-old males with a desire for a
healthier lifestyle. For this “smarter guy,” as we call him, we positioned ourselves as “naturally
remarkable.” Do we keep this focus? Do we stay focused but change the target? Or, do we
broaden things—perhaps adopting more than one target? In any event, what’s our positioning
for targets we adopt?
B) Should the company refocus on the “leaky bucket” of peanuts, cashews, and mixed nuts or
attempt to grow share in the fast-growing almond and pistachio categories?
As noted in the case:
We offer a variety of nuts—peanuts, cashews, and mixed nuts are the heart of the product line.
Lately, almonds and pistachios became the “hot” nut types, driven by health perceptions. As we
focused effort on the new growth areas, we sprung a leak in the traditional nut areas. Peanuts,
cashews, and mixed nut sales declined more quickly than almonds and pistachios increased. Do
we focus on patching the leaky bucket to slow the flow out or on increasing the “new nut” flow
in? An added issue is that the “flowing out” nuts have a cost-of-goods sold at 60% of revenue,
while the new “flowing in” nuts run at 85% of revenue.
c) How should Planters communicate with customers in a competitive product category with
high levels of competitive spending?
As noted in the case:
Nuts are a “hot” category as consumers look for healthier snacks. Focused almond and pistachio
marketers—particularly Blue Diamond almonds and Wonderful pistachios— are spending
significant dollars in pretty creative ways. How can we compete when we want to improve our
margins? Can the new digital media, the Planters brand, and the iconic Mr. Peanut be of use?

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