The Idea Shack

KIAH
TEAM MEMBERS
Sonja Bell Texas State
Amy Brauckman Sam Houston
Michelle Castillo Texas A&M
Michael Cousins Texas
Shawn Crumbly Sam Houston
Kirbi Gayle Texas A&M
Melissa Jarrett Texas A&M
Heather Mella Sam Houston
Steffin Schoeppel Oklahoma State
Sunday Trevino Texas A&M - Kingsville
Katy Winans Lamar
Ben Wirtz Texas State

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TABLE OF CONTENTS
Executive Summary 4
Situation Analysis 5
Marketing Objectives 24
Creative 25
Budget/Media Plan 35
Evaluation 36
Conclustion 37

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EXECUTIVE SUMMARY
To begin, we analyzed the situation of Fiesta’s current positioning. Through
the competitor analysis, it was found that there is an available niche of customer
experience in the market. After conducting the SWOT analysis we were able to
define the areas that needed the most help in targeting the market Fiesta wants
to reach.
The communication objective discussed an integrated marketing improves
perceived brand position by creating new faces in the door, increase sales, and
a different mix of product movement with a $4 million budget over one year. The
marketing objective for Fiesta is suggested to capture the “Fiesta” factor of the
company with the “Come see why we are celebrating” umbrella theme.
The creative theme captures the English meaning of “Fiesta”, which is “party”,
and used a variety of mediums to effectively market with the restrictive budget
of $4 million dollars. Finally, the evaluation was created to describe what Fiesta
can improve on and suggestions that could improve sales, traffic, and a variety
of demographics.

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 SITUATION ANALYSIS
Challenge

Fiesta’s percieved brand position is they are only for the Mexicans and all our
food comes from Mexico. The challenge is to convenience folks that we are a
good food shopping choice. How can we present outselves as a store of their
choice. We have changing neighborhoods and we need to change as well.
Some areas we have and some we are in transition. How do we connect the
pieces?

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SITUATION ANALYSIS
Client History

Since 1972, Fiesta Mart has succeeded in providing their customers with
grocery goods and culturally distinct products. Fiesta caters mostly to the
Hispanic culture of Texas but also provides merchandise for a multi-cultural
clientele. Fiesta Mart stores are located in over 50 different neighborhoods
in and around the major cities of Texas and offer its customers a unique
shopping experience with independent vendors that sell a variety of goods in
an open-market. Selling more than high quality meat, groceries, fresh produce
& seafood departments, Fiesta offers a world-class delicatessen, beer & fine
wines and a variety of international and specialty foods and products. Fiesta
takes pride by offering a variety of goods and services in a traditional buying
atmosphere.

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 SITUATION ANALYSIS
Competitive Analysis

Fiesta Mart’s chief competitors include H.E. Butt Grocery Company, Randall’s
Food Markets, Wal-Mart Stores Inc., The Kroger Co., and the Target
Corporation. These grocery stores all fall under a family oriented value structure
and carry a variety of fresh produce, dry goods, pharmacies, clothing, and
household items. To the perception of the consumer, these retailers are blurred
together due to the difficult objective these companies face trying to differentiate
in the grocery store market due to similar products and prices. Analyzing Fiesta
Mart’s competitors will enable the company to locate the unmet need in the
market and find a successful niche in the grocery store market.

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SITUATION ANALYSIS
Competitor Summary
H-E-B:
Founded in 1905, H-E-B is located in the southern part of Texas, Louisiana, and
northern Mexico. There are approximately 310 stores, each serving upscale
organic products and fine foods.
Mission Statement: H-E-B Partners stand together to build the greatest retailing
company and each and every person counts. We promise great people, the
best service, freshest produce, low prices, good value, a shopping experience
that meet needs, and great products for today and tomorrow.

Randall’s:
Founded in 1906, Randall’s originated in Houston, Texas. Currently, Randall’s
expanded their locations throughout Texas, mainly in Houston, Austin, and
Dallas/Fort Worth. Randall’s has 127 stores mainly located in wealthier
neighborhoods to cater to more affluent customers.
Mission Statement: We are committed to giving back to the community,
workplace diversity, and becoming an environmentally friendly company.

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 SITUATION ANALYSIS
Competitor Summary

Wal-Mart:
Founded in 1962, Wal-mart is the #1 discount retailer as well as the #1 largest
public corporation according to Fortune 500 in 2008. Wal-mart is the only
competitor operating internationally with 8,159 stores. Wal-mart is located in
North America, South America, Europe, and Asia. Some of Wal-mart’s direct
competitors are Kmart, Target, and Costco.
Mission Statement: Sam Walton envisioned selling a variety of general
merchandise at “always low prices”. He wanted to save people money to help
them live better.

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SITUATION ANALYSIS
Competitor Summary

Kroger:
Founded in 1883, Kroger is the largest grocery store chain in the U.S. with
2,470 stores throughout the U.S. Kroger has several store formats including
grocery stores and multi-department stores, convenience stores and mall jewelry
stores. They operate under nearly two dozen banners throughout the U.S.
Mission Statement: To be a leader in the distribution and merchandise of food,
pharmacy, health, personal care items, seasonal merchandise, and related
products and services. We want to build strong local ties and brand loyalty with
customers.

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 SITUATION ANALYSIS
Competitor Summary

Super Target:
Founded in 1902 as the Dayton Dry Goods Company, Target created their
Super Target line in 1995. Target is the #2 discount chain behind Wal-Mart.
Target’s target market includes younger, educated, affluent shoppers. Target
carries upscale, fashion forward merchandise at low cost.
Mission Statement: Make Target the preferred shopping destination for
our guests by delivering outstanding value, continuous innovation, and an
exceptional guest experience by consistently fulfilling our “Expect More. Pay
less.”

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SITUATION ANALYSIS
Market Outlook
The results of the Competitor Summary have strongly indicated that there
is an open niche for a minority-targeted retailer, such as Fiesta Mart, to open
up their target market to anyone who consumes food. The Hispanic catering
theme of Fiesta’s operations already clearly differentiate them from competitors.
In addition to this strong characteristic, if they appeal to more demographics
such as Caucasian and African American, they will increase their sales, traffic,
and word of mouth throughout the American culture without having to heavily
advertise.
Fiesta Mart unfortunately cannot compete with promoting as an established
“century old company” like H-E-B, Randall’s, Kroger, and Target. Neither
can Fiesta Mart compete with Wal-Mart and Target’s modern distribution
operation system and internationally recognized brand. As a result, Fiesta Mart
should continue to capitalize on their Hispanic lifestyle by enticing different
demographics through the offer of a zestful, cultural experience. Although it
is hard to compete with established brands and low prices, Fiesta Mart can
effectively offer a customer experience to emphasize and promote value to
consumers.

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 SITUATION ANALYSIS
Perceptual Map

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SITUATION ANALYSIS
SWOT

Strengths
Unique product offering
Low Price
Size of the Hispanic market in Texas
In-store Services
Weaknesses
Perception of store
Lacks Scale
Unfavorable Layout
Positioning unique products

Opportunities Threats
Uncreached customer segments Rivalry
Appearance and experience of store Competitive pricing
Integrated marketing campaign Misconception of consumer segments
Customer loyalty program

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 SITUATION ANALYSIS
Strengths
Unique product offering.
Fiesta mart provides is a popular ethnic grocery chain catering to numerous
cultures with products from all over the world. This creates a unique offering and
a competitive advantage over more general retailers. It has a wide assortment
and deep variety of products in categories ranging from produce, bakery, meat
and seafood. It extends this to selling soft goods and leasing kiosks to outside
vendors to bring in further retailing opportunities. This allows Fiesta to cater to
various ethnic groups and diverse customer needs.

Low price advantage.

A vital factor in grocery store purchasing decisions is product price. Fiesta
competes with other main competitors in the area by having a low price
advantage. This also attracts the target market. While having low prices it
maintains quality goods providing value for customers.

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SITUATION ANALYSIS
Strengths

Size of the Hispanic market in Texas.

Hispanics account for a large population in the Unites States with increasing
saturation in Texas. Fiesta Mart has a high brand loyalty for these communities
therefore growing numbers will continuously benefit the company. This will help
to stabilize sales in the future.

In store services.
The store provides a one stop shop by offering not only products but also in store
services. These include bill payment, money orders, and cashing checks. This
compliments consumer’s busy schedules.

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 SITUATION ANALYSIS
Weaknesses

Perception of store.
There is negative perception in some segments of consumers due to poor
aesthetics, unorganized layout, and lower value goods. This inhibits the
company from reaching some consumers and expanding operations.

Lacks scale.
Fiesta only operates about sixty locations lacking scale in comparison with
its competitors. This makes lowering prices extremely competitive for a small
company that does not achieve economies of scale. This concentration also
prevents it from capitalizing on opportunity in other states.

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SITUATION ANALYSIS
Weaknesses

Unfavorable layout.
The organization of kiosks upon entering the store is uninviting and interrupts
the comfortable atmosphere. In some areas of the store are cramped such as
front registers. Unstrategic placement of goods makes it difficult for customers to
conveniently shop. The placement of non food items was intrusive to the overall
shopping experience.

Positioning unique products.

The company does not take advantage of its unique product offering and
positioning this to potential customers. They provide special ethnic or cultural
commodities such as a wide selection of imported beer and wine, rare meat
selection, and international spices. These are not marketed to the best of the
company’s ability.

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 SITUATION ANALYSIS
Opportunities

Unreached customer segments.

Despite an established target market there are customer segments that are
unexplored and have potential for growth. Creating perceived value of the
company in these consumers’ minds could be beneficial. Fiesta must do a better
job at communicating to this market by creating a message that will invite all
varieties of customers.

Appearance and experience of store.

Improving the atmosphere and aesthetics of the store to tailor to customers’
needs would create more favorable perceptions. The store itself is outdated,
unorganized, and does not provide an overall experience.

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SITUATION ANALYSIS
Opportunities

Integrated marketing campaign.

Fiesta lacks an overall integrated marketing campaign. Taking advantage of
today’s technology to distribute advertising messages through a variety of media
outlets can help boost sales and awareness. This could also attract new custom-
ers and create loyalty for those who are already established shoppers. An inte-
grated marketing campaign is vital for any company’s success.

Customer loyalty program.

Some form of a customer loyalty program or card is a growing trend among gro-
cery retailers. Not only does this provide customers with low price incentives, it
also is a great tool for collecting customer information databases. This data can
be very useful in analyzing customer segments and purchasing behavior.

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 SITUATION ANALYSIS
Threats

Rivalry.
One of the industry forces involves a threat of rivalry. With intense competition,
it is hard to maintain competitive advantage or differentiate the company without
immediate imitators. In the grocery industry there are so many competitors that it
will always present a challenge in staying ahead.

Competitive pricing.
Because price is one of the driving purchasing decisions for consumers it is an
area that is continuously competitive. Major retailers strive to drive prices down
in comparison to rivals often creating pressure to lower prices. This is difficult for
Fiesta due to its small size and distribution.

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SITUATION ANALYSIS
Threats

Misconception by consumer segments.

An ongoing threat is that customers will perceive the company negatively
decreasing chances that they will shop there. Fiesta is typically viewed as
a multi-cultural grocery store only suited for certain ethnicities. However,
the company offers many everyday products for a diverse population. If the
misconception is not resolved it will be difficult for the company to grow.

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 SITUATION ANALYSIS
Target Market Analysis

The primary target consists of members of the upper middle class. According
to the marketing case, they reside in Katy, Heights, South downtown, Shepherd
at 23rd, and Montrose. This group’s average combined income is $55K. For
purposes of this campaign, we will refer to them as “young accumulators”.

The secondary target consists of members of the lower middle class. This
group’s average combined income is $35K. They reside in parts of Katy, South
downtown, and Montrose. For purposes of this campaign, we will refer to them
as the “midtown mix”. The “midtown mix” is constantly looking for ways to
improve their lower middle class status.

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MARKETING OBJECTIVE

To develop an integrated marketing campaign that reaches our target market

and improves perceived brand position by creativing new faces in the door,
increase sales, and a different mix of product movement with a $4 million
budget over one year.

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 CREATIVE
Implementation
For the purposes of Fiesta, we chose to engage our target, the “young
accumulators” and the “midtown mix”, with the Come see why we’re
celebrating! campaign. Our billboards will convey a sense of mystery when
constant commuters look up and see three successive advertisements for Fiesta
grocery stores. The first billboard will feature a stuffed piñata and a catchy
saying. The second billboard will feature a broken piñata and yet another catchy
saying. And finally, the third billboard will feature various items flowing from the
break in the piñata and our tagline, Come see why we’re celebrating!

Aspects of Fiesta we are celebrating are as follows: location, low prices,

and customer service. Each of our ads will convey a different element of what it
means to celebrate at Fiesta supermarkets.

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CREATIVE
Implementation
Magazine advertisements will accomplish some of the same things
billboards will, especially since one of the magazines we have chosen—Texas
Monthly—is local. The target market will not only relate to the nature of the
magazine, but also the ad. For example, one of our half-page ads features a
young girl with an armful of oranges—Orange you glad you dropped by Fiesta?
This billboard portrays a sense of family fun through healthy food choices and
habits. Encouraging good eating habits is yet another reason for celebration.

In our 30-second television spot, two people are getting ready to go out
to a “party” with friends. When more people walk in and see that our main
characters are primping, they ask, “Where are you guys headed?” They reply,
“We’re goin’ to the party!” Then, the two people get in the car, drive down the
road, and end up at Fiesta. They came to see why we’re celebrating!

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 CREATIVE
Implementation
Our interactive campaign will feature ads on the top social networking sites. The
most popular sites and our ideas to incorporate ideas from the campaign are as
follows:
Microblogging: Twitter (Our bird tweets; do you? Follow us on Twitter for the
latest in grocery shopping.)
Bookmarking: Digg (Post suggestions for recipes on fiestamart.com from your PC
at work or at the office)
Video: Youtube (Fiesta shopper experiences)
Photosharing: Flicker (Post pictures of favorite dishes for everyone to see; Can’t
find the items you need by name? Take a picture of it and post it to the site!)
Search: Google (Be able to search for a “party” aka Fiesta in your area,
complete with weekly specials)
Professional: Linked-In
Purely social: Facebook (Even though Fiesta already has a Facebook page,
we are confident that our campaign will increase friendship, especially when
incentives such as coupons encourage our target market to add Fiesta, assuming
they have their own Facebook page)

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CREATIVE
Implementation
Finally, our direct mail package includes an invitation-style flyer that folds
and unfolds much like the popular graduation announcements of today. Its
unique fold will not only engage our target market, but also imprint the Fiesta
brand in our target’s mind.

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 CREATIVE
Print

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CREATIVE
Billboard

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 CREATIVE
Billboard

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CREATIVE
Direct Mail
Come celebrate
with....

place
stamp
here

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 CREATIVE
Commercial

Client Fiesta Title Fiesta = Party

Spot 30 sec. TV AD Job # 1234

Shot 1: Two professional women in Shot 2: Man enters and questions the Shot 3: Women tell the intruder about
bathroom prepare for the ‘party’ whereabouts of the ‘party’ the ‘party’
Music: Professional elevator music Music: Music is more upbeat

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CREATIVE
Shot 1: Two professional women in
bathroom prepare for the ‘party’
Music: Professional elevator music
Shot 4: Women enter the vehicle ex-
cited about the ‘party’
! Page 1
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Shot 2: Man enters and questions the
whereabouts of the ‘party’
Shot 5: More excitement builds as
women speed to ‘party’
SFX: Engine revving
Commercial
Shot 3: Women tell the intruder about
the ‘party’
Music: Music is more upbeat
Shot 6: Alas! The ‘party’ is at Fiesta -
Come see why we’re celebrating!
Music fades
 BUDGET
Media Objectives
All ads, television spots, and billboards are based on monthly figures

Magazines:
Good Housekeeping - $172, 238 per ½ page ad
Texas Monthly - $12875 per ½ page ad
Redbook - $149,000 per ½ page ad

TV Channels:
Fox Sports Houston - $130,089 per 30-second spot

Interactive Advertising (Internet) - $30/month + $10/1000 impressions

Billboards - $700/per board

Direct Mail - $428,994 for production and circulation

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EVALUATION
Commercial
Our objective is to motivate shoppers in: Katy Heights, South downtown,
Shepherd, and Montrose areas. Our goal is to provide upscale quality items to
the higher income, Anglo, suburbanites. Fiesta Mart is known for developing
their markets to accommodate their surrounding neighborhoods. Through the
interviews conducted on and off site (at Fiesta Mart) we have determined that
the overall target market would prefer basic changes such as better lighting,
improved ambiance, and more organization throughout the store. The kiosks
would cater to the needs of these upscale shoppers. Ideas include: Coffee Shop,
Book store, Nail/Hair Salon, Professional Photography, a Health and Wellness
center (vitamins), and a Movie Corner. Fiesta Mart would also benefit by
incorporating a “Customer Loyalty” card, which would be able to track sales and
award frequent shoppers.

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 CONCLUSION
In conclusion, our campaign set out to emphasize three important aspects of
Fiesta’s philosophy: location, low prices, and customer service.

The primary target, “young accumulators” are between the ages of 35

and 55. They live in urban middle class neighborhoods and have no problem
collecting goods they find necessary.
The secondary target, the “midtown mix” is also between the ages of 35 and
55. They live in lower class neighborhoods and are very conscious of what they
purchase with their hard-earned money.

Our marketing objectives range from in-store redesign to Spanish-as-a-

second-language strategies. We believe that a better layout and more English-
speaking employees as well as displays would improve traffic greatly.

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CONCLUSION
Our creative strategy is the perfect fit for our target market, seeing as they
value each aspect of Fiesta’s philosophy—location, low prices, and customer
service. Hopefully now, more people will Come see why we’re celebrating!

The evaluation has been tailored to test our strategies and prove the
effectiveness of each one.

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