Case Study Jessica Simpson Chicken of the Sea

Read and analyze the case, “ Jessica Simpson Spokesperson Decision.”Thoroughly answer the questions at the end of the case using supporting information from the case, textbook, and other resources. Each question should be answered in a minimum of three to five paragraphs. Include a reference pageWe are studying in chapters 16 & 17.
chicken_of_sea_case.pdf

Unformatted Attachment Preview

Don't use plagiarized sources. Get Your Custom Essay on
Case Study Jessica Simpson Chicken of the Sea
Just from $13/Page
Order Essay

________________________________________________________________________________________
Chicken of the Sea International
The Jessica Simpson Spokesperson Decision
_______________________________________________________________________________________
This case was written by Professor George E. Belch and Michael A. Belch. It is intended to be used as the
basis for class discussion rather than to illustrate either effective or ineffective handling of a management
situation.
Introduction
Chicken of the Sea International (COSI) is one of the oldest seafood companies in the United States. The
company processes and markets a variety of seafood items under the Chicken of the Sea brand name including
canned tuna, salmon, sardines, mackerel, crab, and clam products. The original company was founded in 1914
by Frank Van Camp and his son who bought the California Tuna Canning Company to can albacore tuna and
changed the name to the Van Camp Seafood Company. However, the company began using the Chicken of
the Sea trademark and brand name as a way to describe the taste of its tuna to consumers. Van Camp was the
first company to can “light” tuna. So consumers would know to expect a mild-flavored white fish – that tasted
similar to chicken – the company marketed it under the brand name Chicken of the Sea. It was such a success
that the company eventually adopted the product name.
The company operated under the Van Camp Seafood Company name until 1963 when it was
purchased by Ralston Purina, a producer of processed foods, pet food, and livestock and poultry feeds. In 1988
Ralston sold its Van Camp division to P.T. Mantrust, an Indonesian corporation that wanted to execute a fully
integrated approach to supplying canned tuna to the U.S. However, due to high interest rates in Indonesia and
its overly leveraged structure, P.T. Mantrust experienced cash flow difficulties and the primary creditor, The
Prudential Life Insurance Company of America, became the majority owner. In 1997 the company was
purchased by an investment group known as Tri-Union Seafoods and the name of the company was changed to
Chicken of the Sea International. In 2000 the investment group sold the company to Thai Union International,
Inc. making it the sole owner of the company. In 2003 COSI acquired Empress International Ltd. which
imports frozen shrimp and other shellfish into the U.S. With the acquisition of Empress, COSI total annual
sales would exceed $600 million.
The Chicken of the Sea name is well known and has a high level of brand equity among consumers.
The brand’s identity is strongly related to the Chicken of the Sea mermaid who is one of the best known brand
icons in the world. She first appeared on the Chicken of the Sea label in the early 1950s and has symbolized
quality for the brand for more than 50 years. The mermaid was the focal point for the brand’s advertising for
many years and the recognition of her is still very strong today.
The catchy jingle that was developed in the
early 1960s continues to be used in the company’s advertising: “Ask any mermaid you happen to see…what’s
the best tuna? Chicken of the Sea!” Chicken of the Sea changed the look of its famous mermaid icon in 2003
to make her appear more contemporary. Consumer research had indicated that the mermaid icon was “getting
a little tired” and needed to be updated. Qualitative and quantitative research was used to guide this process
and ensure that the traits and characteristics consumers associated with the mermaid were captured in the new
image.
These included attributes such as being trustworthy, magical, attractive, friendly, approachable,
contemporary and fitting with the Chicken of the Sea brand.
COSI launched a new web site (www.Chickenofthesea.com) that provides value-added information to
1
its customers. The web site includes an easy-to-use recipe generator, product information, resources on health
and nutrition, as well as games and educational content. The site also contains the Mermaid Store, where
consumers can shop for everything from T-shirts to watches to sporting goods featuring the classic mermaid
logo. The web site has become an important part of Chicken of the Sea’s integrated marketing
communications program as the company uses other forms of media to drive consumers to the site and engage
them in the brand. For example, company used its web site as part of its U.S. Synchronized Swim team
sponsorship promotion. Consumers could enter a recipe contest online and register to win a trip to the summer
Olympics.
In 2003 COSI began offering a customer loyalty program called the Mermaid Club, which
consumers can join through its web site. Club members receive special offers, health tips and articles, new
product updates, and an informative e-newsletter. They also can communicate with other club members to
share information and ideas such as new recipes.
Market and Competitive Overview
Tuna is the primary product in the canned/packaged seafood market which also consists of other items
including salmon, crab, shrimp, mackerel, oysters, and sardines. The tuna category accounts for nearly $2
billion in sales each year which includes sales to warehouse and club stores as well as the food service market
(restaurants, hospitals, dormitories). The industry is dominated by three major brands including StarKist
which has approximately a 40 percent market share, Bumble Bee with a 24 percent share and Chicken of the
Sea with 18 percent of the market. Private label brands account for the remaining 18 percent of sales in the
canned/packaged tuna category. There is a considerable amount of brand loyalty in the category have surveys
have shown that 44 percent of consumers are loyal to a particular brand of tuna. The primary target consumer
for tuna is females between the ages of 25-54. In recent years there had been a considerable amount of
product innovation in the tuna category. One of the most significant innovations was the development of the
flavor fresh pouch packaging which provides consumers with tuna that is fresher tasting, firmer in texture, and
requires no can opener or draining. Other product innovations have included the tuna salad kit which was
introduced by Chicken of the Sea and provides the ingredients to make fresh tuna salad in single or multiple
servings as well as a Lunch To-Go product that was introduced by StarKist.
The market leader in the tuna category is StarKist which was owned by the H.J. Heinz Company for
many years but was sold to Del Monte Foods Co. in late 2002 along with several other well-known brands
including 9-Lives cat food and Kibbles n’ Bits dog food. These acquisitions helped push Del Monte, which is
the largest manufacturer and marketer of canned fruits and vegetables, into the top 20 U.S. packaged foods
companies with revenue of more than $3.1 billion. Advertising for StarKist has featured the well-known
“Charlie the Tuna” character as a personality symbol for the brand for more than 40 years. Charlie was first
introduced to consumers in 1961 as the star of the classic “Sorry Charlie” commercials. The spots featured
Charlie trying to trick fishermen into catching him but always being rejected because he was not good enough
2
for StarKist tuna. Consumer awareness of Charlie the Tuna has been estimated at more than 90 percent as the
cool bespectacled icon has a whimsical character and personality that resonates with consumers. Recent
commercials have featured Charlie plugging a number of the company’s new products such as StarKist Tuna
in a Pouch and StarKist Tuna Creations which is another pouch product that is marinated to produce tuna with
a distinct flavor (e.g., zesty lemon, hickory smoked, sweet & spicy, or herb & garlic).
StarKist focuses exclusively on canned/packaged tuna and does not market any other seafood
products. Sales of the various StarKist tuna products were approximately $800 million in 2003. Del Monte’s
marketing strategy for the brand is to expand packaged tuna consumption beyond sandwiches by promoting its
new the portability and variable usage of its pouch products such as StarKist Tuna Creations its new StarKist
Lunch To-Go product which contains the fixings for a tuna salad such as crackers, mayo and relish, along with
a mixing spoon. It was estimated that Del Monte would spend approximately $7 million on media advertising
in 2004 for the various StarKist products. Information regarding StarKist products as well as its advertising
can be found on the company’s web site at www.starkist.com
COSI’s second major competitor is Bumble Bee Seafoods, LLC which was founded in 1899 when a
group of canners banded together in Oregon as the Columbia River Packers Association. Over the next 50
years the CRPA developed the Bumble Bee brand into one of the most respected premium labels for canned
seafood. In 1950 Castle & Cooke, a prominent Hawaii-based seafood company, purchased a majority interest
in CRPA and Bumble Bee Seafoods, Inc. was formed as a wholly owned subsidiary. In 1997 Bumble Bee was
acquired by International Home Foods (IHF) in 1997 who provided the company with the opportunity to
launch a new line of specialty products including shrimp, oysters, clams, smoked scallops and more. IHF in
turn sold the company to ConAgra Foods, Inc. in 2000. However, in 2003 ConAgra decided to shift its
portfolio of brands and businesses and concluded that Bumble Bee did not fit well into its core product mix.
ConAgra sold the company to Bumble Bee’s senior management team in partnership with the investment firm
Centre Partners Management LLC. With more than $500 million in annual revenues, Bumble Bee Seafoods is
the third largest marketer of canned/packaged seafood products in the U.S. The company’s well known “Bee”
can be found on a variety of caned/packaged seafood products including tuna, salmon and a variety of
specialty seafood items. Over the past several years Bumble Bee has run almost no media advertising for its
products choosing instead to allocate its marketing funds to consumer and trade promotions.
Over the past 10 years, the tuna market has become extremely competitive. The major competitors
have shifted most of their promotional budgets to consumer and trade promotions and spending on media
advertising has been minimal. As noted, Bumble Bee has not been running any media advertising and
commercials for StarKist and Chicken of the Sea are rarely seen on television. Most of the promotional
spending toward consumers has been spent in print through FSIs in Sunday newspapers containing coupon
offers. As a result, tuna has become somewhat of a commodity with many consumers often purchasing the
3
brand that was on promotion or offered the lowest shelf price. The three major companies have also been
facing increased competition from private label brands which usually are priced lower than the national
brands. The reduction in media advertising and increased emphasis on sales promotion, as well as the growth
of private label brands, also has resulted in a shift in power from the manufacturers to the retailers. The profit
margins on canned tuna in particular have become very small as retailers are demanding lower prices and more
trade allowances. Given these developments, the major competitors have been finding it increasingly difficult
to allocate funds to media advertising that could be used to maintain and build brand equity.
The Famous Jessica Simpson Fish Faux Pas
In the summer of 2003 the MTV cable network began airing a new reality program, Newlyweds: Nick &
Jessica, featuring pop singer Jessica Simpson and her husband Nick Lachey. The 23 year old Simpson is a
rising pop star who was particularly popular among young teens while Lachey is best known as a heartthrob
member of the boy band 98 degrees. The first season of the show followed the couple from their October 2002
wedding through the beginning of their life together, and became hugely popular thanks to Simpson’s ditzy
comments and behavior. In one of the episodes of the show Simpson made what became known as her famous
fish faux pas when she turned to her husband while eating a can of Chicken of the Sea tuna and asked whether
the product inside the can is chicken or tuna. Viewers of the show laughed and/or shook their heads in
bewilderment while the media quickly picked up on the comment and began comparing Simpson to ditzy stars
from previous generations such as Gracie Allen, Lucille Ball, and Marilyn Monroe.
While Simpson’s gaffe became the target of jokes and a myriad of media stories, it also ignited a wave
of popularity for both her and the show. As the media attention intensified, Chicken of the Sea’s Senior Vice
President of Marketing, Don George, recognized that Simpson’s now famous faux pas presented the company
with an interesting publicity opportunity. George invited Simpson to attend the company’s sales conference in
San Diego in October 2003 for a few hours. Simpson agreed to attend the sales meeting (for an undisclosed
fee) and received a standing ovation from the company’s employees. At the meeting George explained the
true meaning of the Chicken of the Sea brand name and Simpson joined him in singing the company’s “Ask
Any Mermaid” jingle. COSI’s president and CEO presented the pop princess with a basket of Chicken of the
Sea products and an apron for use in her role as a new homemaker. Following the meeting a video news
release containing an interview with Don George and highlights of Simpson’s appearance at the sales meeting
was sent out. The story was picked up by close to 750 prime time affiliates, 10 national television shows,
including E! and Inside Edition, and more than 22 cable shows. COSI’s public relations agency estimated that
Simpson’s the story reached an audience of more than 38 million TV viewers. The story of Simpson’s visit to
COSI was also covered by a number of major newspapers and national magazines which generated several
million more exposures for the company.
4
Following her visit to the company, Don George and other COSI executives began preliminary
discussions with Simpson’s father, who is also her agent, about the possibility of hiring her as a spokesperson
for the company. The company and its advertising agency began brainstorming ideas as to how she might be
used in advertisements and other promotional efforts.
Meanwhile, Jessica Simpson was becoming
increasingly popular as she had released a new CD titled In This Skin along with a music video of the single
With You. In January 2004 she and Lachey were featured performers at the FedEx Orange Bowl Halftime
Show and she sang the national anthem at one of the National Football League playoff games. A few weeks
later, Simpson and Lachey were the guest hosts on NBC’s Saturday Night Live and the second season of the
Newlyweds premiered the following week on MTV. Simpson’s popularity showed no signs of declining as she
was in negotiation with ABC for a role in a new sitcom and signed to play the part of Barbara Eden’s character
in a movie version of the ‘60s TV series “I Dream of Jeanie.”
The Endorsement Decision
Chicken of the Sea continued to benefit from Simpson’s rising popularity and exposure. Her music video
contained a scene showing her eating a can of Chicken of the Sea tuna and she and Lachey did a skit on
Saturday Night Live poking fun at her chicken or tuna faux pas. However, as Simpson’s popularity increased,
Don George realized that the cost of retaining her as a spokesperson for the company was rising as well. He
estimated that it would probably cost the company at least $1 million to sign her to an endorsement contract
that would allow the company to use her in its ads and on various promotional items. COSI was about to
begin a major new branding initiative that was developed to help the company meet its growth objectives and
increase its $340 million in sales in the tuna category as well as sales of its other seafood products. The owners
of the company were supportive of the new branding initiative and planned to support an increase in COSI’s
media budget to as much as $11 million in 2004. George and his marketing staff along with COSI’s
advertising agency were considering ways they might use Simpson as part of a new campaign.
They
recognized that the publicity the company had received from Simpson’s faux pas was helping introduce
Chicken of the Sea tuna to a younger audience who may not have been familiar with the brand and/or had not
yet developed a brand preference. However, there were still a number of issues that would have to be
considered in making a decision whether to hire Jessica Simpson as a spokesperson.
One major issue to consider was whether the company could afford to hire Simpson. They also had
to consider how they would use her if she was retained. Chicken of the Sea had planned on spending most of
its media budget on radio and in magazines as well as on in-store ads such as floor signage. However, TV
commercials would probably be the best way to use Simpson as an advertising spokesperson but the high cost
of television time would limit the amount of advertising they could run given the company’s small media
budget. Consideration also had to be given to how Simpson would be received as an advertising spokesperson
by COSI’s core target market of 25 to 54 year old women. While Simpson was very popular among teens,
5
George was concerned that her ditzy blonde image might not play well among older consumers. Another
important issue that had to be considered was how the company would use Simpson if she was hired as a
spokesperson for Chicken of the Sea. One obvious suggestion was to cast her as the mermaid with a campaign
such as “Our mermaid never looked so good.” There was some concern, however, over doing anything that
might affect the iconic status of the mermaid.
One valuable source of information that Don George and the agency acquired for use in making a
decision regarding the hiring of Simpson was Q scores which were obtained from Marketing
Evaluations/TVQ, Inc. Exhibits 1 and 2, which appear at the end of the case, show the Q scores for Jessica
Simpson as well as the category averages for other female musical performers and are broken down by various
demographic groups. These scores were part of the Performer Q study that was conducted by Marketing
Evaluations/TVQ during the summer of 2003.
It was likely that Jessica Simpson would probably go down in pop-culture history as the girl who
didn’t know the difference between chicken and tuna and Chicken of the Sea had received a tremendous
amount of publicity from her famous faux pas. Now the company had to decide whether they should try to
capitalize further on its association with Simpson. Don George realized that funds spent to hire Simpson as a
spokesperson and run ads featuring her would come at the expense of other forms of promotion. On the other
hand, Simpson’s popularity presented the company with a potential opportunity to generate tremendous brand
awareness and interest for Chicken of the Sea, particularly among younger consumers. Of course, the ultimate
question he was trying to answer was whether increases in advertising and brand awareness that might result
from using Simpson as a spokesperson would move the sales needle and help build brand equity for Chicken
of the Sea.
6
Discussion Questions
1. Discuss the consumer decision making process for a product such as canned/packaged tuna and the
response hierarchy model this is most likely to be applicable in the purchase of this product.
2. Discuss the role integrated marketing communications plays in the marketing of canned/packaged tuna for
a company such as Chicken of the Sea International. How might the company use the various IMC tools as
part of its marketing program?
3. Discuss how Chi …
Purchase answer to see full
attachment

GradeAcers
Calculate your paper price
Pages (550 words)
Approximate price: -

Why Work with Us

Top Quality and Well-Researched Papers

We always make sure that writers follow all your instructions precisely. You can choose your academic level: high school, college/university or professional, and we will assign a writer who has a respective degree.

Professional and Experienced Academic Writers

We have a team of professional writers with experience in academic and business writing. Many are native speakers and able to perform any task for which you need help.

Free Unlimited Revisions

If you think we missed something, send your order for a free revision. You have 10 days to submit the order for review after you have received the final document. You can do this yourself after logging into your personal account or by contacting our support.

Prompt Delivery and 100% Money-Back-Guarantee

All papers are always delivered on time. In case we need more time to master your paper, we may contact you regarding the deadline extension. In case you cannot provide us with more time, a 100% refund is guaranteed.

Original & Confidential

We use several writing tools checks to ensure that all documents you receive are free from plagiarism. Our editors carefully review all quotations in the text. We also promise maximum confidentiality in all of our services.

24/7 Customer Support

Our support agents are available 24 hours a day 7 days a week and committed to providing you with the best customer experience. Get in touch whenever you need any assistance.

Try it now!

Calculate the price of your order

Total price:
$0.00

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Services

No need to work on your paper at night. Sleep tight, we will cover your back. We offer all kinds of writing services.

Essays

Essay Writing Service

No matter what kind of academic paper you need and how urgent you need it, you are welcome to choose your academic level and the type of your paper at an affordable price. We take care of all your paper needs and give a 24/7 customer care support system.

Admissions

Admission Essays & Business Writing Help

An admission essay is an essay or other written statement by a candidate, often a potential student enrolling in a college, university, or graduate school. You can be rest assurred that through our service we will write the best admission essay for you.

Reviews

Editing Support

Our academic writers and editors make the necessary changes to your paper so that it is polished. We also format your document by correctly quoting the sources and creating reference lists in the formats APA, Harvard, MLA, Chicago / Turabian.

Reviews

Revision Support

If you think your paper could be improved, you can request a review. In this case, your paper will be checked by the writer or assigned to an editor. You can use this option as many times as you see fit. This is free because we want you to be completely satisfied with the service offered.

Order your essay today and save 15% with the discount code DISCOUNT15