MARKETING STRATEGY OF THE CRISP YOU CAN’T RESIST! CAMPAIGN

Hershey originally picked ReeseSticks as the most promising contender among a field of four new products made with wafers and peanut butter. The company spent three years conducting focus groups, distributing free samples in locations such as shopping malls, and surveying several hundred consumers as it adjusted the recipe to achieve the most popular balance of chocolate, peanut butter, and wafers. Hundreds of names, including ‘‘Reeskies,’’ were considered before the product was christened. The New York office of Ogilvy & Mather created advertisements that emphasized the new line extension’s taste, texture, and connection to the familiar Reese’s Peanut Butter Cups. In a 15-second television commercial called ‘‘Sawmill,’’ the blade of a buzzsaw—shaped like a round Reese’s Peanut Butter Cup on its side—sliced a crisp wafer in half. The chocolate and peanut butter of the blade melted in the process and coated the divided wafer to form two ReeseSticks. The commercial included the tag line ‘‘The Crisp You Can’t Resist!’’ The Los Angeles Times said that during the week of April 13-19, commercials for ReeseSticks aired 16 times on daytime network television, placing the message in 70 million homes. In addition to television commercials, the national launch of ReeseSticks in February 1998 was supported by advertisements in magazines such as People, and Sports Illustrated. More than 10 million samples of the product were given away at retail outlets, and 40 million coupons were either attached to the product’s packaging or inserted in Parade magazine in April. Standard packages of ReeseSticks sold for about 50 cents, but to encourage consumers to sample the new candy, trial-size ReeseSticks were priced at 25 cents for a short time after the product’s launch. Beginning in April some of the product’s packaging featured a tie-in to the motion picture Godzilla, which was scheduled for release on Memorial Day. When the National Football League season started, Hershey included ReeseSticks in its second annual $1 Million Kick promotion, which offered consumers an opportunity to kick a field goal during the Super Bowl. ‘‘The Crisp You Can’t Resist’’ ad ran in conjunction with the popular ‘‘There’s No Wrong Way to Eat a Reese’s’’ campaign, which promoted Reese’s Peanut Butter Cups and the Reese’s brand in general. Hershey sometimes alternated the two campaigns in consecutive issues of magazines such as Reader’s Digest. Advertising Age reported that Hershey spent $86.2 million to advertise its candies in 1998, up from $84.5 million in 1997, with $60.6 million going toward television commercials and $23.3 million going toward print ads. Hershey budgeted an estimated $15 million for ‘‘The Crisp You Can’t Resist!’’ in 1998.

COMPETITION OF THE CRISP YOU CAN’T RESIST! CAMPAIGN

Hershey led the U.S. candy industry in 1997 with sales of $4.3 billion. Its closest rival was Mars, Inc., which owned brands such as M&M’s Chocolate Candies, Snickers, Twix, 3 Musketeers, and Milky Way. In third place was Nestle´ SA, a company based in Switzerland, with brands that included Baby Ruth, Butterfinger, and Crunchbars. The chocolate-covered cookie and wafer category was valued at $155 million that year. Information Resources, Inc., reported that Reese’s Crunchy Cookie Cups had sales of $20 million and controlled 12.9 percent of the category. Reese’s Crunchy Cookie Cups Halloween Candy generated an additional $7 million in sales. Hershey’s Kit Kat brand had sales of $61 million, and Twix had sales of $49.9 million. For the year ended November 8, 1998, all Reese’s products had sales of $108.9 million; Kit Kat had $60.5 million, and Hershey’s Mr. Goodbar had $9.5 million, according to Brandweek. From mid-August 1997 through mid-August 1998 Twix had sales of $70.5 million in grocery stores, drug stores, and mass merchandise outlets.
Advertising Age reported that Mars spent $67.3 million to advertise its products in 1998. Of that amount, $58.9 million went for television commercials and $7.2 million went for print ads. A large percentage of Mars’ marketing budget was used to promote M&M’s, a popular product that came in two styles—chocolate and chocolate-covered peanuts—with multicolored candy coatings. An M&M’s Crispyline extension was launched late in 1998 with a $40 million advertising campaign. During the first half of 1998 Mars spent $11.9 million to promote another popular brand, Twix chocolatecovered wafer, with the tag line ‘‘Two for me, none for you.’’ The print ads and television commercials revolved around the idea that although Twix was sold in packages of two, the product tasted so good that people were not willing to share it. One commercial showed a man who had just been awarded two expensive vehicles in the brand’s ‘‘Double or Nothing’’ instant-win game. As he wondered what he would do with identical Jeep Wranglers, his companion mused, ‘‘Maybe give one to your best friend.’’ Television commercials in the campaign aired during programs for young people, including Buffy the Vampire Slayer and Party of Five. Hershey’s other primary rival, Nestle´ promoted its Butterfinger brand with an advertising campaign that starred cartoon characters from the popular television program The Simpsons. Ads for another crunchy candy, Baby Ruth, used the tag line ‘‘This baby gets you going!’’ to position the brand as a source of energy for active people. In 1997 Nestle´ spent about $5 million on advertising to support the launch of White Crunch, a bar of white chocolate with crisped rice and peanut pieces. Nestle´ also introduced four varieties of a new brand, Treasures, which consisted of milk chocolate shells filled with peanut butter, Butterfinger Bits, the crisped rice used in Crunch bars, or caramel. An advertisement in People magazine featured the headline, ‘‘This would read even better if you were curled up with some Nestle´ Treasures.’’ The tag line ‘‘From you to you’’ suggested that Treasures were a good choice for consumers who wanted to indulge themselves.
Another rival, Russell Stover Candies, launched Russell Stover Peanut Butter & Jelly Cups. Sold two to a package or individually wrapped in large bags, the product consisted of round chocolate shells with a peanut butter filling and either grape jelly or raspberry jam. One advertisement featured the tag line ‘‘Gushing with Flavor’’ in type that looked as if it had been written with purple and red jelly. The text said, ‘‘For the first time
ever, Russell Stover combines the world’s most popular flavors: peanut butter, jelly, and milk chocolate.’’ The ad included a coupon that could be redeemed for 50 cents toward the purchase of the product and another coupon that consumers could redeem for a free sample

TARGET MARKET OF THE CRISP YOU CAN’T RESIST! CAMPAIGN

Targeting a broad audience of people who enjoyed the taste of creamy peanut butter and rich milk chocolate together, ‘‘The Crisp You Can’t Resist’’ appealed to consumers who enjoyed Reese’s Peanut Butter Cups but who wanted to try a line extension with a new texture and slightly different taste. Hershey intended the new product to move beyond the candy market and compete with cookies and cakes in the snack market. Lisa Kronmuller, new products manager of Hershey’s marketing department, said in a news release: ‘‘Consumers love the taste of peanut butter and chocolate together. ReeseSticks provide a unique combination of sweet and salty tastes with an extra crispy texture—a perfect snack item for chocolate candy, cookie, and snack cake lovers.’’ The ads emphasized the similarities and differences between ReeseSticks and Reese’s Peanut Butter Cups. The campaign’s lighthearted tone entertained the audience and conveyed the message that candy was a fun, enjoyable treat. The ads also showed that ReeseSticks were more complex than some other candies, since they contained three ingredients assembled in layers.

HISTORICAL CONTEXT OF THE CRISP YOU CAN’T RESIST! CAMPAIGN

Hershey traced its roots to Lancaster Caramel Company, founded in 1886 by Milton S. Hershey. A subsidiary, Hershey Chocolate Company, opened in 1894. Milton Hershey retained the chocolate business when he sold the caramel operation for $1 million in 1900. He used the money to open what would become the largest chocolate factory in the world. He also founded a utopian community named Hershey, Pennsylvania, for the company’s workers, and he established an orphanage and ensured that it would continue to receive a large percentage of the firm’s profits after his death. By the 1990s the company was called Hershey Foods. It manufactured ice cream toppings, chocolate syrup, chocolate chips and other baking products, milk products, and various brands of pasta. The company led the U.S. candy industry with brands such as Hershey’s milk chocolate bars, Hershey’s Kisses, Hershey’s Nuggets, Kit Kat chocolate bars, Cookies ’n’ Creme white chocolate bars with cookie bits, York Peppermint Patties, and Twizzlers licorice. In 1996 Hershey also acquired Leaf North America, which made Jolly Rancher, Milk Duds, Whoppers, and PayDay candies. In 1998 Reese’s was the largest and most popular of Hershey’s brands and was valued at $350 million, according to Advertising Age.
Reese’s Peanut Butter Cups were launched in 1928 by Harry Burnett Reese, the founder of H.B. Reese Candy Company. Hershey acquired the firm for $23.5 million in 1963 and began marketing Reese’s Peanut Butter Cups nationally. The product consisted of specially processed peanut butter in a disk-shaped, milk chocolate shell with fluted edges. It was packaged in bright orange wrappers that contained two peanut butter cups. The first line extension, Reese’s Crunchy Peanut Butter Cups, was launched in 1976. Other line extensions introduced over the years included small candies called Reese’s Pieces, peanut butter Easter eggs and Christmas trees, peanut butter baking bits, peanut butter in a jar, peanut butter ice cream, and peanut butter puffs cereal. According to Brandweek, Hershey’s total advertising budget for all its Reese’s products was $33 million in 1997, up from $22.6 million in 1996.
From 1969 to 1988 Reese’s Peanut Butter Cups were promoted with the tag line, ‘‘Two great tastes that taste great together.’’ In 1988, after market research showed that consumers had developed individual, ritualistic ways of eating Reese’s Peanut Butter Cups, the company launched a humorous campaign called ‘‘There’s No Wrong Way to Eat a Reese’s’’ that was still running in 1999. The new ads highlighted the candy’s unique qualities and the many eccentric ways it could be eaten. One magazine advertisement that ran in 1998 showed two miniature peanut butter cups above two captions that both said, ‘‘‘I eat them just like my brother.’’’ A second line of text explained, ‘‘(Don and Dan, identical twins.)’’
In 1995 Hershey supported its recently introduced Reese’s Nutrageous candy bar—a crunchy combination of chocolate and peanuts—with a $9.5 million advertising campaign. In 1997 the company spent an estimated $10 million to launch another line extension, Reese’s Crunchy Cookie Cups, which contained peanut butter, milk chocolate, and a chocolate cookie. The promotion included the distribution of 50 million coupons and 8 million free samples of the product. Later in the year Hershey began selling ReeseSticks wafer bars in limited markets. The ‘‘The Crisp You Can’t Resist!’’ campaign was launched early in 1998 to support the national introduction of ReeseSticks.

OVERVIEW OF THE THE CRISP YOU CAN’T RESIST! CAMPAIGN

Hershey supported the launch of ReeseSticks wafer bars with a campaign that emphasized the product’s connection to its predecessor, the popular Reese’s Peanut Butter Cup. ReeseSticks had a different texture and taste because they contained crisp wafers in addition to the creamy peanut butter and milk chocolate found in peanut butter cups. A television commercial featured a round peanut butter cup in the form of a buzzsaw, cutting a wafer in half and covering it with chocolate and peanut butter. An advertisement in Reader’s Digest in May 1998 simply showed two Reese’s Peanut Butter Cups above the word ‘‘original’’ and two ReeseSticks above the words ‘‘new extra crispy.’’ One of the ReeseSticks was broken apart to reveal that it contained layers of peanut butter between wafers, all coated in milk chocolate. The tag line ‘‘The Crisp You Can’t Resist!’’ was centered below a picture of the new product in the trademark orange Reese’s wrapper. ReeseSticks were the latest in a series of innovative line extensions that had helped make Reese’s the company’s most successful brand. Reese’s was one of the first widely popular candies that combined chocolate and peanut butter. Competing with Hershey, the industry leader, other confectioners introduced their own crispy chocolate-and-peanut butter candies. Advertising for ReeseSticks was so effective, however, that demand exceeded supply shortly after the product was launched nationally in the spring of 1998. ‘‘The Crisp You Can’t Resist!’’ campaign of television commercials and print advertisements was created by the New York office of Ogilvy & Mather. It was introduced in print and broadcast media early in 1998 and continued into 1999.

IT’S ALL ABOUT THE BEER CAMPAIGN - OUTCOME

Heineken’s U.S. sales grew consistently with the introduction of ‘‘It’s All About the Beer.’’ The brand’s estimated sales were at 35 million cases in the mid-1990s; by 1999 that figure had grown to 47 million cases, and in 2000 Heineken saw another 10 percent increase, with sales of 54 million cases. The sales increases were seen as directly tied to Heineken’s new brand image, and the brew’s measured-media spend of an estimated $34 million in 1999 grew to $50 million by 2001. Additionally, Lowe Lintas was tapped, in 2000, to adapt the concept of the campaign for Heineken markets worldwide. Hillary Chura noted in Advertising Age, ‘‘Heineken’s game plan—to broaden the brand’s appeal—allowed the lager to break records, shatter stereotypes and register consecutive years of healthy growth.’’ Gerry Khermouch of Brandweek said of the campaign, paraphrasing Heineken’s Steve Davis, ‘‘It clicked on all three requirements for a winning campaign: it broke through, was entertaining and offered a provocative, relevant message . . . By contrast, even the best work on Bud and Miller often clicks on just the first two criteria.’’
In 2002 Heineken moved its advertising account from Lowe Lintas to D’Arcy Masius Benton & Bowles, because Lee Garfinkel, the most instrumental figure from the outset of the campaign, had himself taken a job at D’Arcy in January of 2001. Heineken waited for Garfinkel’s non-compete clause to expire before moving its account to his new agency. D’Arcy continued the ‘‘It’s All about the Beer’’ campaign in work that paired the established beer-centered theme with holiday subject matter. Heineken changed agencies again in 2003, enlisting Publicis New York, but stayed on message, extending ‘‘It’s All About the Beer’’ in well-received TV spots as well as outdoor ads and radio spots in the following years.

IT’S ALL ABOUT THE BEER CAMPAIGN - MARKETING STRATEGY

‘‘It’s All About the Beer’’ premiered two weeks before the 1999 Super Bowl, during telecasts of the National Football League (NFL) conference championship games. This choice of venue was a strategic move by Heineken to counteract Anheuser-Busch’s dominance in Super Bowl advertising by achieving comparable visibility for a fraction of the cost, while effectively taking center stage as the only advertiser offering Super Bowl–quality spots during those earlier games. Further, for the big game itself Heineken skirted Anheuser-Busch’s Super Bowl exclusivity agreement with the Fox network, which prohibited other brewers from buying national airtime during the big game, by buying time on selected local affiliates. Heineken spots ran during the Super Bowl in markets that included New York, Los Angeles, Chicago, and Atlanta, cities accounting for 70 to 80 percent of the brand’s American sales.
In its bid to appeal to a younger and more down-toearth audience, Heineken took calculated risks of various types in the campaign’s individual spots. Commercials that broke in 1999 and ran through 2000 included ‘‘Mood Swing,’’ in which a fan in a basketball arena was shown doing something that had been unthinkable in an earlier era’s Heineken advertising: drinking the brew from a plastic cup. The dramatic crux of the spot came when the fan’s enthusiasm for his team caused him to spill his Heineken. Another spot, ‘‘The Weasel,’’ showed a man bringing a Budweiser-like beer to a house party and then filching another guest’s Heineken from the refrigerator. ‘‘Premature Pour’’ showed a man and woman pouring Heineken while eyeing one another seductively; excited, the man poured too much beer too quickly, and spilled it. ‘‘The Male Bonding Incident,’’ meanwhile, parodied heterosexual men’s hang-ups about homosexuality. The spot showed two sports-watching men accidentally holding hands while passing a Heineken bottle, before both recoiled in horror. While the sexuality and humor of these spots was in keeping with the tone of much beer advertising of the period, Heineken was almost alone among industry competitors in linking such human situations explicitly to its product. Each of the ‘‘beer moments’’ dramatized in the campaign, regardless of the human behavior exhibited, hinged on the presence not just of beer but of Heineken. Later executions of the ‘‘It’s All About the Beer’’ theme included a group of spots keyed to Heineken’s introduction of a keg-shaped can. In ‘‘The Envy,’’ which ran through 2002, two men stood next to one another at public urinals. Both set their beers on top of the receptacles, but one of the men could not stop looking at the other’s keg-shaped Heineken can. The Heineken drinker, rattled by the attention, left the restroom abruptly. In ‘‘The Poachers,’’ two friends in the checkout aisle of a supermarket stealthily moved the grocery divider on the conveyor belt so that another customer’s case of Heineken would be included among their own purchases.