A Competitive Review of Annie's Homegrown
Direct Competitors
1. Kraft Mac and Cheese:
- Strengths: High brand awareness, available in almost all retailers, a microwavable version exists, recently changed their recipe to be more organic/healthy, and large/memorable TV ad campaigns
- Weaknesses: Unnaturally orange, does not contain real cheese, and directly affiliated with children’s consumption.
- Cost: $1.28 at Walmart
2. Kraft Velveeta Mac and Cheese:
- Strengths: Cream based rather than powdered, highest level of protein as compared to the other brands (13 grams per serving), and a microwavable version exists.
- Weaknesses: Highest sodium level as compared to the other brands (880 mg per serving), highest calorie count as compared to the other brands (360 calories per serving), and highest fat content as compared to the other brands (12 grams per serving)
- Cost: $2.40 at Walmart
Indirect Competitors
1. Knorr Mac and Cheese
- Strengths: Lowest number of calories per servings as compared to the other brands (230 calories per serving) and is the most
affordable.
- Weaknesses: No TV ad campaigns, no microwavable version, little to no brand awareness, mostly viewed only as a side (versus a
meal), and has nondurable packaging.
- Cost: $1.00 at Walmart
Positioning
This campaign will position Annie’s Mac and Cheese as the superior, healthier option when choosing a boxed and/or microwaveable package of mac and cheese. The campaign will emphasize Annie’s major selling proposition, it’s the organic option. The campaign will also position Annie’s as a cheaper option along with the healthier option. Because Annie’s is slightly less expensive than its biggest competitor, Kraft, Annie’s can position itself as the cheaper option as well. Positioning Annie’s as the healthier, cheaper alternative to its competitors will appeal to the target markets. The research has shown that more parents are having increased concerns about their children’s health, resulting in increased sales of organic alternatives. Also, by increasing awareness of Annie’s product, along with the microwavable option, will appeal to our secondary target market, college students. Annie’s provides premium products that are natural, organic, and GMO-free. They have a competitive advantage over some competitors by positioning themselves high in quality and nutrition.
Research
Research has shown that 35% of families actively seek organic options. This number increases to 74% if you include families that make a minor effort to choose organic options for food. Although only 35% of families actively seek the organic options, about 84% of parents believe that it is important to provide organic food for their families. Through Market research 64% of consumers of Annie’s rate their experience as 5/5, 14% rate it at 4/5, 8%, 6%, and 8% gave Annie’s a rating of 3/5, 2/5, and 1/5 respectively.
