Marketing Case Study: Planters Nuts Analysis and Recommendations

This case study analyzes the Planters Nuts brand, examining its market struggles in 2012 and the contributing micro and macro-environmental factors, such as changing consumer preferences and increased competition from brands like Blue Diamond. It explores Planters' brand awareness, particularly the role of 'Mr. Peanut,' and compares its positioning to competitors. The analysis delves into challenges of marketing low-involvement consumer goods and identifies Planters' assets for creating customer value, including research, pricing, and target market segmentation. The study evaluates Planters' positioning and recommends strategies for 2020 and beyond, such as improving product messaging and enhancing product quality. It also describes potential market research techniques that Planters could utilize to develop its overall marketing strategy, including surveys and customer journey analysis. The case study concludes with recommendations for Planters to regain market share and improve its brand performance.

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Planters Case Study
Introduction
Marketing can be briefly described as the activities a company engages in to enhance the
selling or buying of its products or services (Baker). Marketing entails product promotion,
pricing of products, product features, and product placement. Primarily marketing seeks to move
a product or a service, to identify the potential customers then draw their attention to the
available product or service. It determines the sales and the profit margin of any company. This
write-up focuses on the Planters Nuts case study where the current market situation is analyzed
and recommendations made for it to have a significant market share and increase their sales.
1. Why were Planters struggling in 2012? What micro-environmental and macro-
environmental factors contributed to their decline? Has their situation improved since
then?
Planters Nuts were not able to change and adapt to the current needs and want of the
customers. For instance, ‘flowing out’ nut was the new trend, yet Planters Nuts were solid to a
greater extent.
Customers perceived other brands as healthier compared to those of planters. Hence, they
preferred these brands. This situation contributed to the struggle the company witnessed in 2012.

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Another reason for the struggle was that Planter Nuts focused on a single target market,
that is, males between the ages of 35-65 years. An aspect that reduced their market scope hence
the struggle in 2012 (Dolan and Donald).
Almonds invested more in enhancing their brand perception on the customers; they
branded as heart-healthy an aspect that bore fruit for them. Thus, it proved difficult for Planter to
compete effectively.
The new market entrants in the nut market such as pistachios, blue diamond, wonderful
and Emerald. Through their quality products and investments in marketing, they started
commanding a significant market share. A contributing force to its struggle in 2012.
Inadequate procurement capability- they often procured from their competitors, such as
Almond.
Collaborators- they are the stakeholders who have a say in the operating activity of the
company. The planter was not able to understand this aspect; hence, it stopped focusing on
category growth; it lacked the traditional way of the products. This factor also led to its decline
in sales in 2012.
Planters' situation has improved currently an aspect that is attributed to its focus and
improved marketing strategies. They are currently working on research and development to help
build an effective marketing strategy for its brand.
2. Why do Blue Diamond and other competitors have lower brand awareness than Planters
despite outstripping Planters marketing spending in recent years? How can this be
explained from a brand equity perspective?
The marketing strategy of Planters is based on the fundamental nature of its products;
they have portrayed themselves as authentic, inventive, and sustainable. Thus, their customers

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perceived them to be a brand of superior quality. Their brand personality was confident,
authentic, and witty. With this, its customers were more aware of the Planters brand.
The company has a brand name- “Mr. Peanut,” which is popular among customers. The
name is easily memorable, and the customers relate easily with it, therefore, enhancing their
brand awareness. The brand name has enabled it to outdo competitors such as Blue diamond.
They were strategic in their marketing, for instance, in holiday 2010 campaign, where
they aimed at just serving snacks no matter who shows up a strategy gave them a good brand
position.
They were an established and respected brand because of its strong message
communication; hence its product name stuck on consumers’ minds. Their new invention of a
little peanut person and the slogan “social rise of peanuts” played a role in increasing their brand
awareness too.
3. What are the inherent challenges for brands such as Planters in marketing low
involvement in consumer goods?
Attitudes- consumers are uninfluenced by polarized feelings on their point purchase of a
brand choice. Instead, they consider price and product familiarity in choosing a particular brand
(Doherty). Brands such as Planters must, therefore, ensure that their products are superior in
comparison to those of competitors, they have to focus on pricing and strategies to increase their
brand awareness.
Influence from others-for the low involvement products such as peanuts, people tend to
use their friends' opinions about the product. They always consider other people's
recommendations. If, for instance, a friend perceived a commodity as of low quality, then he will
influence those within his or her circle to dislike the product too.

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Product category- customers, going shopping for low involvement goods, have little or
no consideration for a wide range of brands. Thus, they make use of their limited scope in
evaluating their purchasing choices. Customers often perceive the products as to be having no
differences; therefore, there is no need to consider more expensive products (Doherty). For the
customers to review a product; therefore, they have to view a product as one they can find
pleasure with or have a better experience.
Low involvement marketers should, therefore, focus on building positive associations of
their products, enhance product differentiation and emotional advertising.
4. What are the primary assets Planters has to employ towards its mission of creating value
for its chosen customers? Who are their primary target markets? Also, is there a particular
market segment for whom Planters has a distinct advantage over competitors in creating
value?
Research- Planters can invest in doing surveys and watch customers actions and
reactions, with the research they will be able to gather data and become aware of what is
essential to the customers and the available opportunities for them.
Pricing – the price of the products is also an essential component of creating value to
customers; hence it is an asset that should be employed by Planters. The company can set prices
that paint a picture of value to the customers, and also that ensures Planters has the right profit
margin (Baker). Customers get satisfied by a product when they see more value in that product;
therefore, they will be willing to pay more. Even at a low price, unsatisfied customers will leave.
Planters can use a price penetration strategy to increase their customer base while entering new
markets.

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Targeting and Segmentation. Different customers have varied perceptions about
products and brands relating to competitors. Having specific target markets would narrow their
scope. This asset will enable Planters to focus its resources on a particular group of people,
thereby offering more value to these customers.
Value proposition- improving their value proposition will prove to be worthwhile. The
value proposition entails improving the quality of the products. Having peanuts that have more
benefits, for instance, are healthier peanut, working on their pricing, or other ancillary costs
would give them an upper hand.
Their primary target market was 35-65-year-old males. The company had no specific market that
had a distinct advantage. This can be linked to the stiff competition within the market.
5. Evaluate the positioning of Planters as described in the case. Compare and contrast this
positioning objective with their current one in 2020. What positioning strategy do you
recommend for Planters in 2020 and beyond?
In the case of Planters, their positioning is in line with branding, which has given them an
upper hand. On the other hand, they have a weakness in quality and their pricing strategy. In
customer surveys, customers view planters brand as more expensive than competitors. Planters
charge higher prices than its competitors in the market.
Considering the quality of the peanuts, cashews and mixed nuts. The quality of these products is
low compared to pistachios and Almonds
They have used Mr. Peanut as their marketing strategy. The invention "A little peanut
person" and the "slogan social rise of peanuts" gave it a strong position as the picture of a top-
hat, monocle, cane, and gloves-" Mr. Peanut" easily stuck on the customers' mind (Planters).
Planters have currently adopted new marketing strategies to attract more customers. They

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have enhanced their brand awareness through the iconic "MR. Peanut" that stars at their
marketing campaigns. Partnerships have also contributed to their improvement. For instance,
their partnership with Noon Whistle Brewery to flavor some of its peanuts. Currently, their
positioning objective is to build a strong purchase consideration and increase their advertising
awareness.
Recommendations
Refocus on 'leaky bucket'- this can be implemented through quality improvement and
price reduction of peanuts, mixed nuts, and cashews. Having high-quality products at lower
prices will create more demand for their products; thus, it would increase its market share.
Change of Product message. The current product message is 'Naturally Remarkable.'
Changing this message to a more price and quality-oriented message and a positioning statement
will improve product communication. An improved product communication would increase
brand awareness of Planters products; thus, in turn, enhance their demand pulling power.
6. Describe how Planters has used or could use various quantitative and qualitative market
research techniques in developing their overall marketing strategy
They could make use of the consumer journey to improve their brands. This can be
implemented as they would have gathered data on their customer’s perception of the brand and
how customers distinguish their brands.
Through interviews with the customers, Planters has been able to get accurate feedback.
Since they are the primary determinant of the success of the company in terms of profits, they
can ascertain the customers' complaints, therefore, focus on improvement measures. Planters, for
instance, had in-depth interviews to hear precisely what the consumers had to say about the
brand and their sense of emotional connection with the company's brand. They did find out that

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customers view their brand as of high-quality nuts but less “fit” compared to Almonds and
Pistachios. With such data, they can focus on their weaknesses to improve their brand
perception.
Surveys- Planters has and can use surveys as a research technique to determine the
demographics and user preferences. It will enable them to know about its customers' perceptions,
impressions, and expectations about its brand products portfolio. These will impact their decision
making on what they need to add or remove from its products, thus having an effective
marketing strategy.
Surveys involve demographic questions that are seeking information about age, gender,
education, employment, family, and dependence. It also entails behavioral questions that
ascertain buying behaviors, values, and goals. The behavioral questions uncover the underlying
motivations among customers; thus, Planter can create a unique value proposition through it
Both the behavioral and demographic questions come in handy in understanding
accurately who Planter will be marketing to and what they want. The data collected can be
analyzed to have target groups and segments for marketing purposes.
Conclusion
Planters had been struggling because of varied reasons. Reasons that led to a drop in their
sales and revenue back in 2012. Its competitors, such as blue diamond were making it large in
the market because of their marketing strategies. When Kraft’s foods got split, Planters went
alone hence the need to employ elaborate marketing strategies to continue commanding a
significant market share; its management had to rethink everything. Because of these reasons did
research to accumulate accurate data to be used in the formulation of an effective marketing
strategy.

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Works Cited
Baker, Michael J. Marketing strategy and management. Macmillan International Higher
Education, 2014.
Doherty F. How Tech Brands Can Escape the Low-Involvement Trap. (2012)
https://blog.gfk.com/2012/09/how-tech-brands-can-escape-the-low-involvement-
trap/
Dolan, Robert J., and Donald K. Ngwe. "Planters Nuts." (2017).
Planters. Wingnut Take The Wheel https://www.planters.com/mr-peanut/planters-through-the-
years