JELL-O!

Group Members:

Madiha Sohail – 10290

Naveed Baig – 9953

Umer Khan – 10501

Faryal Faridi – 10213

Zehra Jawaid – 10116

Submitted To: Shahnaz Meghani

Subject: Marketing Management

Date: 14th January 14, 2010

 JELLO

INTRODUCTION
General Foods was introduced in 1970. Kraft Food Corporation acquired General Foods later to own its
Jell-O brand. Jell-O is one of the most successful gelatin products in the U.S. Jell-O is a brand recognized
by 99% of Americans and used regularly in 72% homes. Jell-O is targeted towards children due their
liking of sweets. But, Jell-O sales have been on the decline. General Foods found out the following
problems regarding the symptoms of declining sales. These include;

Number of household with children declining

Fewer traditional meals eaten

More snacking: snacks were considered as tasty, convenient and fun

Money available for gourmet products

Concern for diet and health

Moreover, Jell-O has failed to attract its target customers i.e. children. Another factor is that it has
become difficult to purchase due to its availability.
Assumptions
 Outdated product – taste wise as well as image wise
 Cut backs in promotional budgets – The company assumed that due to the product’s heavy
presence and due to it legacy, it needed little promotional activities.
 Poor management of portfolio due to extensive product line – “During a meeting between the
Jell-O management, when discussing problems related to the declining sales, a top executive
asked about how many employees had tasted jell-O in the past six months, it turned out that no
one had!”. This reflected the ignorance towards the product. The management itself was not
aware of the product’s taste. They did not “THINK CONSUMER”
 Lack of research – Feedback was not considered as vital. The product was not designed to cater
to the changing needs of the consumers.
 Moreover the “Societal Marketing Concept” was not being applied”. For example increased
awareness made consumers realize that the dyes being used to produce vibrancy in the product
are harmful for the health.
 Potential market has observed an increase in diversity. For example Muslims are considered as
prominent prospective consumers.

SWOT ANALYSIS

Strengths

 Nationwide presence in the U.S – Jell-O is considered as a pioneer in “easy-to-make” desserts.

Acceptance rate of 99% among consumers. It is considered as an integral element of American
meals and dessert lines.
 Established brand name. The brand has matured through generations. Strong association with
the brand to the extent that every jelly product is considered as jell-O (irrespective of the
manufacturer’s identity).
 Financial stability. General Foods is a profitable company generating revenues from other star
brands.
Weaknesses

 Unattractive packaging – Old school style of packaging gave it a very outdated look.
 Perceived as childish – The brand is considered as a child’s product.
 Deteriorating Brand Image
o Controversies: Advertisements displaying signs of discrimination. For example an ad
aired during the 70’s showed a kid trying to eat jell-O with chopsticks and is unable to
do so, hence the mother intervenes and instructs the child to use a spoon stating that
jell-O a western invention. The ad offended the Chinese consumers.
o Environment: The product used artificial colouring as well other ingredients like collagen
that proved to be harmful for health and the environment.

Opportunities

 Potential Global Markets: The Company can venture into other global markets such as the
European markets.
 Changing eating trends – The Company can cater the product according to the changing
consumer preferences. Organic elements can be inculcated in pudding line e.g. using Soy milk.
 Tweens can be a very high potential market.

Threats

 Gourmet products such as cookies, cakes and chocolate. People preferred classy desserts over
Jell-O.
 Increased awareness of consumers: From 1908 until 1976 products like Jell-O owed their rich
red, orange and brown colors to Red Dye Number 2. Bright, enticing colors made these modern
convenience foods an exciting departure from older, more laborious methods of cookery. But by
the 1970s a growing wariness about the safety of chemical food additives sparked the ban of
Red Dye Number 2.
 New entrants are giving jell-O a tough competition

Issues
 Jell-O has been facing problems in luring customers.
 Children don’t find Jell-O eye-catching enough.
 The changing eating patterns and diet preferences are a problem that can be used as an
opportunity.
 With a fast-paced lifestyle, people consume more snacks on the go.
 Due to high rate of obesity In the U.S, people preferred diet or sugar free desserts.
 Low product quality
  Muslims consider gelatin as “Haraam/ forbidden” since it contains collagen from pig tissues and
bones.
 Lack of environmental considerations.

Recommendation
Jell-O should use multiple marketing approaches that work synergistically to set Jell-O apart hip,
modern, playful and vibrant brand. Following are the recommendations

 Jell-O should target kids as well as adults who are familiar to Jell-O from their childhood.
Nostalgia proves to be a strong marketing appeal as people finds comfort and solace in
childhood memories.
 Jell-O should extend its product usage to occasion such as Easter (introducing egg shaped
moulds) and Christmas (introducing turkey shaped moulds and promotions) to give a feeling of
festivity and joy.
 Jell-o should extend the market to tweens (age 8-12) and teens by introducing Jell-O branded
cosmetics such as smacker lip glosses.
 By improving its distribution network. Jell-O would be able to reach more customers. Company
can involve its distributors and retailers in planning its distribution strategy. This would create a
sense of ownership in the minds of distributors and consequently lead to increase stacking in
stores. To retailers, Jell-O can provide incentives to stack their product on a prominent shelf
level. With a high up shelf space, customers would be made aware of the availability of Jell-O.
 Jell-O can introduce a low-sugar or fat-free line that would focus on health conscious segment
of the market. As Jell-O previously perceived as unhealthy and inconvenient, it can introduce
“portion controlled options” such as 60 cal serving ready to eat desserts in different flavors
(other than fruits)
 With a declining birth rate due to increasing number of professional couples, Jell-O can use this
to its advantage. Jell-O can come up with products that would appeal to adults. By introducing a
line of products for working professionals, Jell-O can stem the decrease the slump in sales that it
currently faces.
 Innovative research methodologies – The company should conduct research based on focus
group studies, telephonic and email interviews, trade audit etc.
 Environment friendly ingredients focusing the inculcation of more organic food items.