SlideShare ist ein Scribd-Unternehmen logo
1 von 37
Downloaden Sie, um offline zu lesen
American Marketing Association
Collegiate Case Competition
December 17, 2014
vitaminwater
Hydrate Your Journey
Hydrate Your Journey
Table of Contents
Executive Summary										1
Introduction											1
SWOT Analysis										2
Competitor Analysis										4
Current Trends										4
Research Methodology									5
Research Objective
Study 1
Study 2
Segmentation Analysis									7
Primary Target Market Analysis
Secondary Target Market Analysis
Marketing Plan and Strategies								9
Marketing Objectives
Key Issues Facing vitaminwater
Positioning
Media Plan											9
Media Objectives
Media Strategies
Media Mix
Media Budget
Media Flowchart
Advertising and Promotional Campaign							12
Sales Promotion
Public Relations
Scavenger Hunt
Concerts and Festival
Label Contest/Packaging
Commercial
Extra Incentive
Digital Marketing										16
Website and Microsite
Internships
Twitter and Facebook
YouTube and Online Radio
Email
Instagram
Snapchat	
Measuring Effectiveness									18
Sales Forecast											19
References											20	
Appendix A-T											21
Yo Hidratare Tu Camino
Executive Summary
vitaminwater is a market leader in the enhanced flavored water beverage industry but has been facing
many problems the last few years that may threaten the hold that vitaminwater currently has on the
industry. The enhanced flavored water market, including vitaminwater, has been facing declining sales
over the last five years. There is also brand confusion about when and where consumers are expected to
drink the beverage. Consumers may even see vitaminwater as a sports drink which is contrary to where
vitaminwater sees itself. Another problem for vitaminwater is that their marketing tactics lack cross
appeal and they need a message that appeals to diverse consumer groups.
The target market that vitaminwater would like to focus on is the 18-to-24 age group. In order to solve
these key problems we identified a primary target market that can be categorized into two segments: the
“Social Sippers” and the “Gratified Guzzlers.” Social Sippers are connected to digital media and drink
vitaminwater sparingly, while the Gratified Guzzlers are content with the beverage and drink large
amounts of it. In order to appeal to this target market, vitaminwater must leverage trends that these
segments find important. Some of these trends include a celebrity culture, widespread digital media,
diversity and openness, and the environment.
We will reposition vitaminwater as the enhanced flavored water beverage that brings you flavorful
experiences, humor and rhythm throughout your journey. To reinforce this positioning and to appeal to
the target market we identified we developed a series of tactics that are tied to trends and are centered on
social media. Our marketing tactics leverage an understanding of the consumer, vitaminwater’s current
capabilities, and enduring trends that connect to diverse consumer groups in the United States of America.
The events that will be implemented are a Scavenger Hunt, Concert, Label Contest and Festival. We will
develop a campaign that will be sustainable and can be repeated for future years building brand loyalty
with the new target market. Our tactics begin with generating buzz for the Scavenger Hunt in order to
engage our new target market. The tactics conclude with a festival to incentivize our loyal target market
who has been on the journey of the campaign with us.
Introduction
The Glacéau Company was founded in New York City by Darius J. Bikoff in 1996, and it consists
of smartwater, vitaminwater and fruitwater. In 1998 smartwater was launched and two years later,
vitaminwater. The beverages were a success and experienced significant growth in the 2000s before
being purchased by The Coca-Cola Company in 2008. The Coca-Cola Company is a prominent brand in
the beverage industry and has opened up opportunities for vitaminwater. In 2010, with more consumers
concerned about the amount of sugar and calories they were consuming, vitaminwater zero was
introduced into the market. The extensions of vitaminwater include the base drink, vitaminwater zero,
vitaminwater zero drops and vitaminwater energy. The drops and energy drink are the newest additions
to the vitaminwater family and do not make up a significant amount of sales. There are eight different
flavors for the vitaminwater base and eight flavors for vitaminwater zero. Each flavor also has a unique
name that describes the name with a short, humorous description on the label. The most popular flavors
are vitaminwater zero squeezed, vitaminwater water zero xxx, and vitaminwater base xxx.
The non-alcoholic beverage industry is worth about 118.3 billion and there is an average annual sales
growth rate of 10%. Based on information provided in the case, vitaminwater made $1,016,626,320 in
sales in 2009 but dropped to $723,307,470 in 2013 and is on track to continue to decline throughout 2014.
That is a decrease of 28.9% in sales with an average decrease of 5.8% per year. Most of vitaminwater’s
total volume sold is through grocery stores followed by convenience stores. The channel with the largest
portion of sales is convenience stores followed by grocery. According to the data provided by the
1
Coca-Cola Company, most vitaminwater is bought individually in 20 ounce bottles. It is also sold in
16.9oz and 12oz bottles, which have a slightly different packaging. vitaminwater zero makes up 32% of
vitaminwater sales and most vitaminwater is purchased by repeat consumers. vitaminwater has tried
different approaches of advertising by using celebrity endorsers ranging from 50 Cent, professional
athletes, and now currently to comedian Kevin Hart.
SWOT Analysis
Strengths
i. Market Leader
vitaminwater is a market leader in the enhanced flavor water category with a 62% market share. Since
vitaminwater was launched in 2000, it has continued to create many different flavor options for its
consumers. Different taste options appeal to consumers because the diverse variety allows them to have
the ability to choose their own particular flavor, as if the drink is customized. They have also created
new brand extensions like vitaminwater zero and vitaminwater energy that appeal to different types of
consumers. vitaminwater zero drops are a great alternative for the consumers who use drink mixes. The
zero calorie options of vitaminwater appeals to the health-conscience consumers who are concerned
about their sugar and calorie intake. vitaminwater energy appeals to thrill seeking individuals who are
open to new experiences.
ii. Subsidiary of a Powerful Brand
Since vitaminwater is owned by the most dominant beverage company in the world, it has an advantage
over other enhanced flavored water drinks. With the resources of Coca-Cola, vitaminwater has gained
store shelf space because of its renowned owner. Under the ownership of an established company such as
Coca-Cola, vitaminwater is automatically given a strong presence in the beverage industry. Consumers
have already built a level of trust with Coca-Cola, which will increase the chances of them trying other
types of beverages under their ownership.
iii. Well-Known Brand
As a brand, vitaminwater has its own personality that stands out among other beverages. The drinks are
visually colorful and appealing to the eye. Each bottle has a unique flavor with a catchy and distinctive
name. The labels of each bottle have a humorous story that can encourage consumers to buy the beverage.
vitaminwater has held a close connection to the music industry through partnerships throughout the
industry.
Weaknesses
i. Confusing Health Claims
Considering vitaminwater is advertised as a healthy and nutritious drink, its ingredients do not
necessarily back up this claim. By far one of the largest and most impactful weaknesses for vitaminwater
is its artificial ingredients and high levels of sugar. Consumers are increasingly checking the nutrition
information on food and beverages before they purchase such items, and the ingredients in vitaminwater
have the possibility of deterring consumers from purchasing the product.
ii. Slow Response to Consumer Needs
When the Coca-Cola Company acquired vitaminwater it introduced some potential barriers. Now that
vitaminwater is part of a larger company, they must compete for company dollars to insure that their
brand is promoted. It also takes longer for decisions to be made because there are more requirements
before a change can be made. Coca-Cola is well known for its soda, which is not considered healthy.
vitaminwater may be associated with soda because of Coca-Cola which will negatively impact the
healthy image that vitaminwater is trying to stimulate.
iii. Brand Confusion
Brand confusion is a prominent weakness that needs to be addressed because vitaminwater is advertised
as a healthy drink but contains large amounts of sugar. In response to the high sugar levels, vitaminwater
2
zero was introduced but still has artificial ingredients and therefore alienates some of the health-conscious
consumers. vitaminwater also used athletes to endorse their product, even though it does not want to
be seen as a sports drink. This makes the consumer confused and left trying to figure out the identity of
vitaminwater.
iv. Legal Issues
vitaminwater has incurred legal issues for promoting itself as a healthy beverage and benefiting
consumers in many ways that may not necessarily be true. Promoting a misleading image for itself is a
major disadvantage for the company and may cause a portion of the population to shy away from buying
vitaminwater products.
v. Not Eco-Friendly
Another weakness for vitaminwater relates to their bottles and packaging materials used. People are
not only becoming more aware about health, but consumers are also reaching towards products that are
environmentally friendly. The current bottles and packaging used for vitaminwater are not eco-friendly,
which in turn cuts off a portion of the market from buying their products.
Opportunities
i. Health Conscious Partnership
Over the last few years, being health conscious has been an increasingly popular trend that will provide
opportunities for vitaminwater. As Americans watch what they eat and become more active, healthy
options are quickly becoming popular. Currently, less people are drinking sugar filled drinks like soda and
are instead, drinking more water. vitaminwater can take advantage of this trend by being the beverage
that health conscious people choose over soda. Since vitaminwater is stationed as a healthy beverage
and wants to stand out against traditional sugary drinks, there are many opportunities for the product to
partner with other health-conscious businesses and companies. Many schools, for example, have banned
soda machines and only offer healthier alternatives. Customers who place an importance on eating healthy
tend to eat at popular restaurants like Chipotle and Subway, which allows for partnership opportunities
with these restaurants and vitaminwater.
ii. Appeal to Target Market
The amount of attention consumers pay to popular culture and what celebrities are doing provides
opportunities for vitaminwater to appeal to the 18-to-24 year old target market that they are seeking.
Many consumers are heavily using mobile phones and social media to share photos and stay connected
with friends and popular culture. Utilizing digital media broadens the chance that consumers will become
more aware of vitaminwater in general, as well as share their consumption experience with others.
iii. Green Visibility
Due to the increase in eco-friendly products, vitaminwater has the opportunity to alter its packaging
to appeal to consumers who are drawn to natural and green products. vitaminwater bottles use a very
thick plastic and a large cap compared to eco-friendly products. If they change the plastic in the bottle
they have the ability to advertise to consumers their commitment to the environment. This is important
to young people today and has the potential to increase brand awareness and show consumers the many
benefits that vitaminwater has to offer.
Threats
i. Competition
One of the major threats to vitaminwater is the number of competitors in the enhanced flavored
water beverages industry. Some of these brands include SoBe Life Water, Propel, Dasani, Aquafina
FlavorSplash, and Nestle. Of these competitors, SoBe Life Water and Propel pose the biggest threat, refer
to the Competitor Analysis for more details. Propel and SoBe Life Water both contain fewer calories
per bottle than vitaminwater, which appeals to the more health-conscious consumer. Furthermore, on
3
average, vitaminwater sells for a higher price than that of its competitors. The competitors also hold a
prominent place in the market and are clearly identified for their purpose. Propel, for example, is known
for preventing dehydration and producing a quality product. SoBe Life Water holds an image for pure and
flavorful drinks.
ii. Negative Association with Lawsuits
Brand image is a threat for vitaminwater as lawsuits have been filed claiming the product has false
advertisements. It is promoted as being a healthy drink alternative, in which you are able to consume
electrolytes and a variety of vitamins including A, B, C and E. However, while vitaminwater may provide
vitamins and electrolytes, it has artificial flavors and 32 grams of sugar, roughly the same sugar content as
carbonated beverages. With many consumers becoming aware of this factor, there is the risk that buyers
will purchase a substitute drink choice.
A SWOT Matrix can be seen in Appendix A, and a TOW Matrix in Appendix B.
Competitor Analysis
The beverage industry is divided up into many categories including sports drinks, energy drinks, and
enhanced flavored water to name a few. vitaminwater’s main direct competitors in the enhanced flavored
water market are SoBe Life Water and Propel. Their indirect competitors in the hydrating beverage
category in general include mainly Gatorade and Sparkling Ice.
Gatorade is a trusted, popular and profitable sports drink brand. They use big name athletes and center
their brand around hydration on the field. vitaminwater does not want to compete against such a large
brand. Sparkling Ice is not comparable to a brands like vitaminwater, SoBe Life Water and Propel
because the cost per bottle is much higher. Due to this, Sparkling Ice is competing against other private
label brands that charge more per bottle.
vitaminwater’s direct competitors include Propel and SoBe Life Water; both are under the parent
company of Pepsi Co. To prevent Propel and SoBe from cannibalizing each other, Propel is trying to
target the over 25 age group. SoBe Life Water is targeting the same group as vitaminwater, the 18-to-24
age group. vitaminwater is priced slightly higher than Propel and SoBe Life Water and all three offer a
zero calorie option. In advertising, SoBe tends to have a more provocative and edgy approach, compared
to Propel which focuses more on those who work out daily. The bottle shape of the SoBe Life Water is
twisted at the bottom which makes it stand out. Propel has a skinny bottle to portray a sporty image.
Synopsis of Competitor Analysis
Based on our evaluation and the information presented in Appendix C, Propel and SoBe Life Water are
the main competitors to vitaminwater. The pricing of vitaminwater is on average slightly higher than
the competition. All of these beverages offer a zero calories option. SoBe Life Water has a unique bottle
shape along with edgy and appealing advertising. They have a limited variety that is growing as well as an
easily recognizable brand. Propel used to have a unique cap which it was known for but has since moved
away from that and is now known more for its powder packs. They position themselves as a workout
beverage but have a relatively low visibility. Both SoBe and Propel have a significantly lower number of
likes on their Facebook pages and followers on Twitter as well as no Instagram account. vitaminwater is
the market leader with a lot of variety using music and a comedic approach. They do not have a uniform
size of bottle, as their six and eight packs have different sizes than the single or twenty-four packs.
Current Trends
There are multiple current trends taking place that vitaminwater will apply. Some key trends identified
include, being health conscious, fast fashion, diversity, and the emphasis on value. vitaminwater must
4
position itself to be seen as a healthy alternative to other beverages like soda but will not be able to
position itself as the ultimate health beverage. Many consumers who are interested in a healthy lifestyle
are also interested in being eco-friendly. The best way to capitalize on the trend of a busy and fast fashion
culture is to move with it and be able to adapt to the constantly changing fashions by utilizing social
media. There is an increasing amount of diversity in the United States, especially the Hispanic population.
This can be addressed by incorporating other cultures and races throughout the brand. The final key trend
that needs to be addressed is the emphasis on getting a ‘good value’ with every product. vitaminwater
needs to show that each bottle has a high value placed on it because it is important to consumers. These
four trends are important for vitaminwater to consider going forward.
Research Methodology
Research Objective
We completed this study to test our predictions on consumer preferences of vitaminwater and the
beverage industry. In order to determine if the 18-to-24 year-old segment was appropriate for this product
and to gauge the brand’s 30-to-39 year old loyalists. The results of our analysis were derived from focus
groups, in-depth interviews, and our surveys. After analyzing the results, we found our primary and
secondary target markets matched our preferred segment of consumers. Study 1 includes the qualitative
data using focus groups and in-depth interviews. Study 2 includes the quantitative data using Survey 1
and Survey 2.
Study 1
i. Research Approach
The objective of Study 1 was to understand the consumer and to find information to include in the
quantitative studies. We conducted a focus group to obtain insights on 18-to-24 year old consumer’s
perception of vitaminwater. Our goal was to collect information on the segment of consumers who have
either tried the beverage or have not. All participants in the focus group were within the target market of
18-to-24 year olds. We then conducted in-depth interviews of heavy-users of vitaminwater were selected
that fit our primary and secondary target markets who consumed vitaminwater weekly.
ii. Procedure
The focus group that we conducted took place during a weekly AMA meeting with our members. There
were six groups that consisted of eight persons, each group was moderated by a member of our research
team. This session was to evaluate the product’s marketing campaigns, commercials, and its packaging.
All participants were able to express their opinion on all vitaminwater products and then were able to
sample vitaminwater base or vitaminwater zero. For the in-depth interviews, team members contacted
peers they knew from the target areas and reached out to students’ on-campus who were consuming
vitaminwater. We asked questions from both survey samples to gauge their opinion on the beverage
industry, their consumption of vitaminwater, their perceptions on current marketing tactics, and their
opinion on possible opportunities for vitaminwater.
iii. Results Focus Groups
Quality: Most respondents were unaware that vitaminwater was a product of Glacéau and the Coca-Cola
Company. The general perception is that vitaminwater has a bland taste that is overpriced. Inconsistency
in their marketing tactics and advertisements has given non-consumers a mixed signal of what they are
trying to identify and accomplish as a brand.
Awareness: The majority of respondents were unware that vitaminwater had a zero option, zero drops,
and a fountain. Although they were aware of the vitaminwater base beverage, there is low consumption
5
for it and very little motivation to buy due to other competitive products.
Overall: The results revealed that vitaminwater lacks a clear identity. Respondents mentioned that,
“there are too many word on the label” and were confused asking, “is vitaminwater a sports drink?”
vitaminwater is viewed as a beverage that “doesn’t know if it’s a sports drink, energy drink, or something
completely different.” The consensus seemed to be that vitaminwater is rarely an option when deciding
what type of beverage to purchase. Respondents attributed the identity problem to the clutter on the
packaging and inconsistency in marketing tactics.
iv. Results In-Depth Interviews
Awareness: Since the participants were heavy users of vitaminwater and consumed the product weekly,
they were all aware of the vitaminwater base, vitaminwater zero, and vitaminwater energy products.
However, the majority of respondents still were not aware of the zero drops and the fountain drink.
Lifestyle: The majority of our heavy users lived a similar lifestyle. The reason why they consumed
vitaminwater was because they did not consume other types of beverages that promote a different
lifestyle. Participants were not heavily involved in sports, so they did not list sports drinks as their highest
consumption. The psychographics of this segment under our primary target market is further described in
the Segmentation section. The outcome of Study 1 was used to find relevant questions to test through the
survey research.
Study 2
i. Research Approach
The objective of Study 2 was to use the qualitative data to survey a larger sample size in our target market
to find quantitative data about our target market. Survey Sample 1 was distributed to 150 students on
campus in the primary target market of 18-to-24 year old. We aimed to reach a diverse range of consumer
ethnic heritage and how frequent they consumed vitaminwater. With Survey Sample 2, we aimed to reach
our primary and secondary target markets by profiling and distributing the surveys to nearby college
campuses, grocery stores, and convenience stores. The final sample used for analysis is based on the 149
respondents, with 5% in our secondary target market and 95% in our primary (Appendix D, E and F).
ii. Procedure
In Survey Sample 1, all 150 respondents were able to sample vitaminwater base or vitaminwater zero
product after they completed the survey. We utilized nominal multiple choice questions in order to
determine the types of beverages they were consuming, distribution preferences, their perception of how
they would classify vitaminwater in the beverage industry, and which types of vitaminwater products
they consumed. We then used contingency questions for how often one consumes vitamin or electrolyte
enhanced beverages. There was also one open-ended question to determine what vitaminwater could
do to make their product more appealing for consumers in terms of packaging, marketing tactics, and
promotions.
For Survey Sample 2, we created a quantitative survey that consisted of Likert Scale and nominal
questions, which were tailored specifically to vitaminwater and possible psychographics that would
correspond to our target markets. Respondents’ were surveyed on their perceptions of the flavors and
taste, their knowledge of the vitamins and artificial flavors, and their likelihood to purchase vitaminwater.
We also confirmed which category respondents perceived vitaminwater to be placed in the beverage
industry. Results of the survey were then analyzed for trends.
6
iii. Results Survey 1 (Descriptive)
Consumption of Beverages: Of the types of beverages consumed, respondents reported high consumption
frequency for bottled water, fruit beverages, and coffee. The lowest frequency reported was for
sports drinks. 45 respondents never consume vitamin or electrolyte beverages, while the majority of
respondents consume one to three times per week. The beverages that are consumed by respondents favor
supermarkets and convenience stores for distribution.
Overall: When ranking the significance of various attributes on products in the beverage industry, most
respondents were unaware of what attributes vitaminwater had that differentiated itself from other types
of beverages. For additional descriptive results see Appendix G, H and I.
iv. Results Survey 2 (Statistical Analysis)
Conversion to Consumption: 117 of the respondents stated that they have purchased and consumed
vitaminwater before, while 32 have not. When running a descriptive analysis, our highest mean was
3.66; which tells us that respondents did not feel strongly positive nor strongly negative towards the
vitaminwater products.
Purchase Intention: A descriptive analysis was conducted which found that the highest mean was a
psychographic for our target market, which was living a healthy lifestyle (3.59). The following highest
means included purchase intention (3.55), feeling good when drinking vitaminwater (3.53), and liking
the flavors vitaminwater offers (3.53). The lowest mean was that consumers did not drink vitaminwater
in place of water (1.9) with the next being social media and if it influences one’s decisions on what one
consumes (2.61); see Appendix J.
Overall: A correlation analysis was conducted with a co-efficient of .5. The correlation results show
a strong relationship between likelihood to purchase and the following variables: attitude toward
vitaminwater (.792), perception of the health value of vitaminwater (.523), and how much the flavors are
liked (.547). The regression analysis shows that a feel good attitude, sweet craving and being physically
active are strong predictors of purchase intention (Appendix K). Survey 2 questions are in Appendix L.
Segmentation Analysis
In identifying target markets, we aimed for one that would be accessible and illustrate the basis for our
marketing strategies. We focused on the primary market of male and female 18-to-24 year olds whose
current vitaminwater consumption is down. These consumers are very important because vitaminwater
wants to build a relationship to continue throughout their life journey. The secondary target market is the
30-to-39 year olds, male and female, who consume vitaminwater due to being introduced to the beverage
as young adults. The 30-to-39 age group will also establish similar brand loyalty in their children.
Primary Target Market Analysis
i. Secondary and Primary Data Collection
The demographical information for the primary target market consists of single, 18-to-24 year old
populace. Those in this segment usually attend some type of schooling, either a university or a technical
college. According to the 2010 U.S. Census, there are 30,672,088 people who fit this demographic which
makes up 9.9 percent of the population of the United States. High school graduates are usually 18 years
old and are entering a new journey in life when they need to become more independent.
ii. Analyzing the Data
The segments described below were determined based on insight from secondary data research, results
7
from qualitative and quantitative research and several brainstorming sessions. The brainstorming sessions
included the use of design techniques, such as the use of the empathy map. Images of this process can be
seen in Appendix M. The empathy map is used to develop the needs, fears, likes and dislikes of the target
market which leads to many things including what products and services they prefer to use. All of this
information was compiled to find a clear picture of our target market. We identified two separate segments
that have parallel characteristics from our primary target market, they are named the Gratified Guzzlers
and Social Sippers. All of the findings are based on data and common trends, specifically from in-depth
interviews, surveys and the brainstorming sessions.
iii. Similarities
The results from our findings show that both of these segments have little time and money and purchase
vitaminwater when convenient at convenience stores. They are concerned with their future and are
comfortable with using technology. At the same time they are critical of the information that they receive
through advertisements. They are also social and often share information through friend groups about
what products to purchase. These segments utilize public transportation and are often living on a budget
but still value brand name products. Another commonality is that they are faced with a lot of stress and
are often looking for a way to escape some of the struggles that they are facing by traveling with friends.
Often, these experiences or journeys are documented along the way with a mobile phone.
iv. Differences
Gratified Guzzler
Based on our analysis, Gratified Guzzlers love to drink vitaminwater more often than the Social Sippers
and they prefer the vitaminwater base drink. These Gratified Guzzlers tend to drink the vitaminwater
quickly, in one sitting, in contrast to the sippers. This segment is predominately male and are interested
in pursuing their own independent journey while using basic social media platforms such as Facebook
(sparingly) without needing constant support. They are active but health does not highly impact their
consumption choices. Gratified Guzzlers are happy with the taste of vitaminwater and they do not have a
strong opinion on being eco-friendly but acknowledge that it is important. Overall, Gratified Guzzlers are
independent, active, easily gratified with consumption options and have a low level of socially conscious
consumption.
Social Sipper
In contrast we found that Social Sippers like vitaminwater but will not drink the entire bottle in one
sitting, they will instead sip on it throughout the day. This segment prefers vitaminwater zero and the
vitaminwater zero drops and the individuals are predominately female. They are heavily connected to
multiple social media outlets to share their life journey with both friends and family. Social Sippers look
up to and spend time following the actions and opinions of celebrities, predominately through social
media. They want advice and input from others while living a relatively healthy and eco-friendly lifestyle.
These Social Sippers are concerned about their outward appearance online as well as in person. Overall,
Social Sippers are dependent on social media, influenced by trends and have a high level of socially
conscious consumption.
Secondary Target Market Analysis
The secondary market consists of 30-to-39 year olds, specifically parents with young children. They
were introduced to vitaminwater while they were younger and are loyal to the brand. This segment
usually buys vitaminwater from large stores like Walmart. It is important that they are not alienated by
marketing strategies targeted at the primary market. This segment is not as savvy with technology but are
still interested in it to a degree. These consumers will continue to be loyal to vitaminwater and encourage
their children to drink the beverage as well.
8
Marketing Plan and Strategies
Marketing Objectives
The marketing objective is to increase sales of vitaminwater by 17% over the first three years. This
will be achieved with a 7% increase the first year of the campaign followed by 5% increase each year
after. vitaminwater will also increase their presence on social media by creating a Snapchat account and
increasing their current platforms including Facebook, Twitter and Instagram. Facebook page likes will
increase 100%, Twitter followers will increase by 200% and Instagram followers will increase by 300%.
Refer to Appendix C for current numbers of page likes and followers.
Key Issues Facing vitaminwater
There are three key issues that are currently facing vitaminwater based on the situational analysis. The
first is declining sales due to a limited amount of 18-to-24 year olds drinking vitaminwater. Next is that
consumers are choosing competition over vitaminwater due to lawsuits and consumers being unsure
about whether it is healthy or not. Finally, the inconsistency in the brand message is a key issue of why
vitaminwater is having troubles with sales.
Positioning
vitaminwater is the enhanced water beverage bringing you flavorful experiences, humor and rhythm
throughout your journey. vitaminwater is targeting 18-to-24 year old consumers who are currently
beginning a new phase in their journey. The flavorful experiences represent the colorfulness and large
variety of flavors that the beverage offers. The singer, Ariana Grande, and the events that we will
be offering will represent and enhance the image and experiences of loyal consumers. The humor is
incorporated in vitaminwater’s history of using comedy as a way to increase brand awareness. They will
continue to use humor through a continued partnership with comedian, Kevin Hart, and by using humor in
advertisements. The rhythm of vitaminwater is the commitment and connection that they have to music.
The use of music and concerts in the campaign of vitaminwater will be shown through singer Enrique
Iglesias. vitaminwater is with the consumer, keeping them hydrated on their journey by utilizing flavorful
experiences, humor and rhythm.
The slogan of the new campaign is, “Hydrate Your Journey.” Those in the target market are at a pivotal
part of their journey, either entering college or leaving college. They are having new experiences and
making new memories. Your journey is more than just related to college, people of every age are
constantly beginning and experiencing new journeys. Each one is different but vitaminwater can be there
through it all to hydrate you. vitaminwater will provide you with opportunities to enhance your journey
by offering fun events and ways to be involved with the brand. This new slogan is more relevant than
the current slogan but builds off the “Hydrate the Hustle” theme so as not to alienate current consumers.
The term ‘hustle’ has vague and confusing meanings and sometimes can evoke a negative connotation.
We found during the in-depth interviews and observation that it also makes consumers think of sports
and being “on the court.” The term ‘journey’ will help clarify that vitaminwater is the “off the court”
beverage and it is easier to translate into other languages.
Media Plan
Media Objectives
The main objective of our media plan is to reach our target audience through promotional tactics
and advertising with the goal of increasing the sales of vitaminwater. We will increase awareness
of the product within our primary target market while keeping our secondary target market in mind.
Implementing our marketing campaign will provide measurable results to ensure the product is being
advertised to its full potential.
9
When the marketing plan is implemented we will focus our strategies on four different target cities:
Riverside, California; Kansas City, Missouri; San Antonio, Texas; and Charlotte, North Carolina. In all
four areas there is a large population of millennials and there are large universities located nearby in
order to reach the target market. Riverside, California is near Los Angeles, a destination city and a large
metropolitan area. Kansas City was chosen due to a large number of destination universities in the area
drawing in students from all over the country. San Antonio was chosen because of the large amount of
diversity, particularly Hispanics, in that area. Charlotte, North Carolina is a central location for both the
South and East Coast of the United States.
Media Strategies
Our media strategies are centered on reaching our primary and secondary target markets in the most
efficient way possible and within the $40,000,000 - $60,000,000 budget. It is estimated that there are
115,000,000 households in the United States that have television. For this reason, we are choosing to run
commercials informing consumers of the events vitaminwater is launching, as well as introducing the
changes that have been made to the product. There are over 300,000,000 mobile phone users across the
nation, which indicates that social media will be an effective way to reach our target market. Social media
will be highly utilized for our promotional events, including a Scavenger Hunt, label contest, concerts and
summer festival.
Our marketing campaign will focus on the four cities mentioned above in order to encompass four diverse
areas of the country. California and Texas are both designated market areas and contain the top markets
for media exposure. We will utilize primetime cable networks to reach our primary and secondary target
markets, as well as local channels that are significantly cheaper.
Our promotional campaign will be led by the slogan “Hydrate Your Journey.” It will begin in September
of 2015 when we will start informing consumers of the Scavenger Hunt taking place in October.
Beginning in November, we will launch marketing tactics for the concerts taking place in January.
February through April will include the label contest as well the beginning of promotions for the festival
in May. See Appendix N for a complete timeline of our events and Appendix O for a flowchart of the
marketing tactics.
Media Mix
Television alone has a 98% reach potential with high geographic flexibility and exposure frequency
opportunity. The channels we will focus on advertising are AMC, FX, and ABC Family. Our vehicles
include Mad Men, It’s Always Sunny in Philadelphia, and Pretty Little Liars respectively. These media
vehicles have been chosen due to the similarities of the viewers of these shows and our target market,
according to Advertising Age.
In addition to television advertisements, the commercials will be used as interstitial advertisements and
will be displayed at the beginning of YouTube music videos for Enrique Iglesias and Ariana Grande.
They will be adapted to be played on local radio stations and Spotify. This is an affordable way to reach
consumers.
Overall, YouTube is a very affordable yet effective way to attract the attention of our designated
markets. The commercials will also be played on vitaminwater’s microsite and social media sites. All
advertisements will be humorous in order to grab our target market’s attention and continue the comical
trend that vitaminwater has used.
10
Media Budget
Table 1: Broadcast Media Budget
Broadcast
Cable Television
Kansas City,
Missouri
Riverside,
California
San Antonio,
Texas
Charlotte,
North Carolina
Total
Television
Households*
941,980 1,604,754 906,210 1,157,920 4,610,864
Number of
30 second
Commericials**
200 200 200 200 800
Total $5,000,000 $5,000,000 $5,000,000 $5,000,000 $20,000,000
*(Nielsen, 2013)
**1 30sec Commercial= $25,000; CPM= $26
The total budget for broadcast media marketing is $20,000,000, as shown in Table 1. Commercials will
be run on cable television and they will be run at an increased frequency around the time of events.
There will be a total of 800 commercials run, with 200 running in each major market. There will be three
commercials produced: two including a celebrity, $600,000 each, and one without a celebrity, $300,000.
This leads to a total production cost of $1,500,000. The three commercials will be run at different times
throughout the campaign.
Table 2: Digital Media Budget
Digital
CPM Cost
Spotify $10.00 $10,000
YouTube $7.60 $15,000
Total $25,000
As shown in Table 2, the total budget for the digital media marketing is $25,000. We will utilize the
digital strategy by having interstitial advertisements run for two weeks before each event. There are four
major events: the Scavenger Hunt, concerts, label contest and Revive Festival. This leads to a total of
eight weeks of interstitial advertisements. Spotify is an online music site which will cost about $10,000.
YouTube will cost $15,000 which was calculated based on an average of 1 million views per week.
The budget, in Table 3, comprises all costs incurred to vitaminwater, including traditional and digital
media promotions, celebrity endorsements, events, and packaging changes.
Media Flowchart
See Appendix P for a flowchart of the media plan.
11
Table 3: Total Budget
Cable Television $20,000,000
Commercial Production $1,500,000
Digital Media $25,000
Sampling $50,000
Coupon Prizes and Promotions $725,000
Fountain Drinks Installation $50,000
Outdoor Advertisement $1,000,000
Celebrity Endorsement $3,000,000
Brand Ambassador $100,000
Philanthropic Cause $7,500,000
Scavenger Hunt $10,000
Hydrate the New Year Concert $1,000,000
Revive Festival $2,000,000
Label Contest $500,000
Packaging Changes $5,000,000
Microsite $60,000
Interns $500,000
Snapchat $100,000
Nielsen On-Line Brand Effect Study $500,000
Total Budget $43,620,000
Advertising and Promotional Campaign
Sales Promotions
i. Sampling											$50,000
We will be handing out free samples of vitaminwater on University campuses in our target cities with
Coca-Cola partnerships. This strategy will generate awareness within our target market of the brand
and more importantly the promotions such as concerts, competitions and events. We will create avenues
for advertising within universities by partnering with college organizations from the schools such as
the American Marketing Association. This will create opportunities that would not be possible without
affiliation with the colleges. Members will distribute flyers in student centers, residential housing, etc.
Students will set up a promotional booth during large campus events and will provide activities, hand
out free samples, and promote the current contest that vitaminwater is holding. There are approximately
65,000 college students in each of these areas. Our goal is to spread awareness to at least 75% of these
students. Incentives would be offered to each of the student organizations with a donation of $1,000. We
will choose popular organizations from the largest schools in each city. Interns will also be hired to help
distribute the samples.
ii. Coupons										 $725,000
Coupons will be used for the Scavenger Hunt as an incentive to increase participation. The coupons will
start out with a discount on one bottle of vitaminwater and slowly become a larger prize, as points are
awarded. Prizes will include $5 Subway gift cards and free downloads of Ariana Grande and Enrique
Iglesias songs. $175,000 of the budget will be for Scavenger Hunt prizes and discounts. Coupons will also
serve as an incentive to persuade the commercial viewers to visit the microsite. A promotional code will
be displayed on the screen and the viewer has 15 minutes after the commercial to enter the code on the
microsite to win electronic coupons for vitaminwater products. The total cost of this will be $150,000.
12
In our target cities, we will have extra point of purchase incentives to encourage people to buy
vitaminwater. For example providing additional coupons at convenience stores near University campuses.
vitaminwater sells for $1.09 per bottle. By raising the price to $1.59 and providing 50 cent coupons, the
consumer will feel they are getting more value out of their purchase. Getting the best value out of a dollar
was a major trend that the general population is concerned about. These coupons will be available at the
point of purchase, through email, and with QR codes. Compared to the competition, vitaminwater will
appear to be a higher quality beverage that they are getting at a low price. $250,000 will go towards the
in-store coupon promotions.
Many people are not aware of the fact that vitaminwater has drops. To promote this product and
encourage people to purchase the drops, vitaminwater will partner with the Camelbak water bottle brand
for a bundle promotion. The Camelbak water bottle was chosen because the brand embodies the active,
environmentally friendly image of the new campaign. It is also a popular brand among our target market,
especially the Social Sippers. When the consumer buys a Camelbak water bottle, they will receive a one
free package of drops. The promotion for this will primarily be in-store signage and package coupons.
$150,000 will be used for the Camelbak partnership.
iii. Fountain Drinks										$50,000
To provide millennials with easy access to the product and introduce more exposure of the product,
vitaminwater fountain drinks will be installed in each of the universities that have Coca-Cola partnerships
in our target locations. The colleges in our target locations that do not have Coca-Cola partnerships will
have the fountains installed in the university’s Subways, due to our partnership with them. Promotions
will be implemented such as, getting a discount on meals when pairing with a vitaminwater fountain
drink.
iv. Outdoor Advertisements						 		 $1,000,000
We will place advertisements on public transportation such as buses and light rails. Public transportation
will have high visibility and will be selectively located near universities and other locations with a high
density of our primary market.
Public Relations
i. Celebrity Endorsements								 $3,000,000
The musical celebrity faces of this campaign will be Ariana Grande and Enrique Iglesias. Both of these
artists will appeal to both target markets and the brand because they are both popular celebrities that target
a broad audience, specifically the growing Hispanic populace. Ariana Grande is appealing to the younger
target market and relates to our brand because she is seen as colorful, fun and energetic. She embodies
our Social Sipper . Enrique attracts the secondary target market and the Gratified Guzzlers. He is very
popular in California and Texas and brings in large crowds to his concerts. Kevin Hart will also be used in
the campaign, specifically as the host of the festival, in order to continue their existing image and to have
some consistency with current marketing tactics. See Appendix Q for photos of the celebrities.
ii. Brand Ambassador									 $100,000
Along with having celebrity faces for the new campaign, vitaminwater will also find a millennial that
embodies the brand’s image. Having a brand ambassador who embodies the slogan will create a strong
relationship with the target market. This person will be the target market’s age, participates in similar day-
to-day activities and will be working towards many of the same goals. vitaminwater will be accepting
applications from June 2016 until the end of July 2016. Individuals can apply by submitting a short essay
to the microsite. In the essay, each participant will answer the question, “How do I exemplify the slogan,
‘Hydrate Your Journey’, as defined in vitaminwater’s new campaign.” The winner will be announced
in August and will hold the title of the vitaminwater, “Band Ambassador” for one year. They will also
win an all-expense paid trip to the next year’s Revive Festival, complete with VIP tickets and backstage
passes.
13
iii. Philanthropic Cause			 			 	 $7,500,000
vitaminwater will be supporting a philanthropic environmental cause by donating to World Wide
Institute. World Wide Institute is a non-profit that is dedicated to helping the environment. This will
exemplify that vitaminwater is dedicated to the environment, not only by changing the bottle but by
donating and giving back. Environmental awareness is a prominent trend, and it is appealing to the Social
Sippers. This event will also be used to improve vitaminwater’s image after all of the negative publicity it
gained from accusations and legal actions regarding misleading health facts. During 2016, one percent of
all sales will be donated to World Wide Institute.
Scavenger Hunt 										$10,000
i. Strategies and Execution									
The vitaminwater Scavenger Hunt will be a seven day contest during the final week of October,
Halloween weekend. These dates was chosen due to its popularity among millennials. Based on our
research, many of the people in our target market dress up, and are highly involved in Halloween related
events throughout October. The microsite will provide instructions on how to sign up. Each day will be
a different challenge in which individuals will post a photo or video. After each post there will be the
option to share it on Twitter and Facebook. Each of the challenges can be completed any day throughout
the week, but they all must be completed by Sunday, November 1 at 11:59 pm Eastern Time. The points
will add up to various vitaminwater coupons. The extra point options and the more creative people get,
the more points they will be awarded. Each challenge will earn participants 10 points, with an additional
five points for completing the challenge on the correct day. If vitaminwater is included in the picture
or video, an additional five points will be awarded. Two more points will be awarded by sharing the
pictures or videos on Twittter and Facebook. Refer to Appendix R for the complete details on all of the
challenges. The goosechase app will be used to track participants’ points and will cost vitaminwater
roughly $1,000.
Concerts and Festival
i. Hydrate for the New Year Concert 							 $1,000,000
The New Year of 2016 will be brought in with a concert from vitaminwater. The concert will serve to
increase exposure of vitaminwater’s new brand message and new celebrity endorsers, Enrique Iglesias
and Ariana Grande. There will be three concerts taking place the first week of the New Year in January
2016. They will take place in three of our target cities: Riverside, California; San Antonio, Texas; and
Charlotte, North Carolina. Top winners of the Scavenger Hunt will receive free admission to attend and
the label contest will be announced during the concerts. Above all else, it will exemplify vitaminwater’s
new twist on “Hydrate Your Journey.” The concert will provide consumers a chance to enjoy themselves
and prepare for the challenges of their upcoming journey while ringing in the New Year. Reference the
Digital Marketing section, to see how Twitter and Facebook will be utilized to promote this event.
ii. Revive Festival									 $2,000,000
There will be a vitaminwater Revive Festival during the first week of June in Riverside, California. The
festival’s purpose is to ‘revive’ the target audience after a long work and school year. It will also be an
introduction into summer and will appeal to the target market who view summer as a time to vacation,
road trip, and have a good time. The Revive Festival will be portrayed as the “hot spot” for millennials
to attend. At the festival there will be music by Ariana Grande and Enrique Iglesias and it will be hosted
by comedian Kevin Hart. There will also be a foam party, paint party, giant water slides, games and other
activities. The Digital Marketing section includes information about how this event will be promoted via
social media and the website.
14
Label Contest and Packaging
i. Strategies for Contest								 $500,000
The Label Contest will be kicked off with the concerts in January. Entries will be submitted through
February and March and the top twenty finalists will be announced at the end of March. The finalists will
be decided by vitaminwater judges. The month of April will include voting for the top design through
the microsite. After voting, there will be the option to share your favorite design on Facebook and Twitter
to help spread the word of the contest. The winner of the label contest will be revealed on stage at the
Revive Festival. The winner will receive an all-expense paid trip to the festival and will get free VIP
tickets and backstage passes to meet Ariana Grande and Enrique Iglesias. Scholarships of $5,000-$10,000
will also be awarded to the top five winners in the contest.
A label contest campaign will be implemented to gain interest in vitaminwater with millennials and our
secondary target market and to assist in creating a unique style. The participants will feel as though they
have contributed to the launching of vitaminwater’s new campaign, in return creating loyalty to the
product. Allowing anyone to vote on the best label creates a sense of contribution and involvement in the
voters as well. The criteria for the contest will portray the image of vitaminwater. The main points will
be to include vitaminwater’s connection with music, humor and the new slogan “Hydrate Your Journey”.
The criteria will also include a template of the label which displays the areas that can be changed. This
will serve to help control the placement of the logo, nutritional facts and contact information. The design
with the most votes will ultimately design a slightly unique label for each flavor and zero option as to
allow people to easily tell them apart. There will be strict criteria for the entries, criteria details and the
label template can be seen in Appendix S.
ii. Packaging Changes									 $5,000,000
As well as changing the label, the bottle will also be altered to become more eco-friendly. The eco-
friendly bottle will appeal to the Social Sippers due to their current interest in “green” trends. After much
discussion and research it was decided that changing the label, thickness of the plastic, and cap color
would be the most effective option. Changing the label will give the bottle a new and cleaner look. It is
not necessary to change the bottle design because of the high costs associated with it including hiring a
designer, building new machinery and in-store racks. Only the thickness of the bottle will be altered. By
creating a large amount of attention to the label through the contest, we should be able to achieve the
same effect without these extreme costs. Changing labels is relatively inexpensive, and this approach does
not require paying for a graphic designer to create a new label.
Colored caps will also be implemented, as it was highly suggested during our focus groups and surveys.
vitaminwater as a brand is colorful and the color of the drink itself is vibrant. To add individuality to the
different flavors offered, the color of the caps will be changed to match the color of the flavor. The caps
will still be transparent and will be tinted to reflect the flavor’s unique color. This is a low cost option to
bring attention to vitaminwater’s new campaign and appeal to the consumer.
Commercials 										 $21,500,000
There will be a total of three 30 second commercials throughout the campaign. One will include Enrique
Iglesias and is detailed in Appendix T. The second commercial will include Ariana Grande and the third
will be generic to represent vitaminwater’s new campaign as a whole. The commercials will show
that vitaminwater has recreated itself and that there are a lot of fun events and competitions happening
in the upcoming year, without specifically mentioning any of them. This will allow the commercial
to run all year long. The commercials will be designed to encourage the viewer to visit the microsite.
Each commercial will incorporate the new slogan, “Hydrate Your Journey,” and show the journey that
individuals embark on. The cost for the commercials is outlined in the Media section.
15
Extra Incentive
To encourage participation in all events and to have an underlying strategy across all promotions,
discounts on the Revive Festival tickets will be rewarded to people who partake in each event. Also, the
concert will be free to attend for those who earn at least 70 points in the Scavenger Hunt. There will be
monetary discounts on the Revive Festival ticket price for participating in the Scavenger Hunt, attending
a concert, following vitaminwater on all social media outlets, and voting for the label contest. Admission
to the festival will be free for those who participated in each of the previously mentioned activities. VIP
camping space will be awarded to those who submit a design for the new label contest.
Digital Marketing
Website and Microsite
Website
The current website for vitaminwater will continue to be used for this campaign but will be updated
to reflect the target market of 18-to-24 year old Social Sippers and Gratified Guzzlers. Information on
the beverage, current events and social media will be included in the website. The design currently is
innovative and new, but the content under the #howihustle will be changed to reflect the new slogan. The
website will also include live feeds from the social media platforms. An addition to the current website
is the option on the homepage that leads a visitor off the website to the microsite promoting all the future
events. This will give the visitor a way to quickly understand the events and promotions that are being
implemented and how they can get involved. The microsite will be colorful with pictures of upcoming
events and videos featuring Ariana Grande, Enrique Iglesias and Kevin Hart. Also included in the
microsite will be our television advertisements and links to our social media platforms.
Microsite											$60,000
The microsite will integrate our campaign by informing viewers of the upcoming events and direct them
on how to participate in the current activity. There will be a link to the goosechase app for Scavenger
Hunt participants. In April, during the label contest, voting will take place on the microsite. We would like
the microsite to have over one million views before the January concerts.
i. The Scavenger Hunt participants will be directed from the microsite to the goosecahse app. This app
is where they will initially post their photos to gain points. The winners of the Scavenger Hunt will be
announced on the microsite as well as the social media outlets.
ii. Concert promotion will begin as soon as the Scavenger Hunt is over and will be the main focus on the
website and microsite. The tagline that will be promoted is Hydrate for the New Year.
iii. Label Contest designs will be submitted to the microsite, where the top designs will be voted on
beginning the month of April.
iv. The Revive festival will be promoted heavily throughout April and May over the website and
integrated with the other event advertisements on the microsite.
v. Television commercials will be played on vitaminwater’s microsite and social media sites. The
commercials will end with mentioning our new microsite and encourage the viewer to visit in order to get
exclusive information on the new vitaminwater events and competitions coming up.
vi. For the Brand Ambassador contest vitaminwater will be accepting applications through the microsite.
Individuals can apply by submitting a short essay to the microsite.
Internships										 $500,000
Maintaining the social media platforms is important to the new “Hydrate Your Journey” campaign. In
order to keep these updated, college students will be hired to be interns to keep the social media content
updated. Interns will be chosen from universities in our target cities, Riverside, Kansas City, San Antonio
and Charlotte.
16
Twitter and Facebook
Twitter is the social media website to generate buzz around the product and listen to the consumers’
comments and respond to what the fans want out of the product. Twitter will receive a minimum of 500
retweets per post made. Facebook will be used to increase audience engagement and sharing to enforce
loyalty. Fans can ‘like’ vitaminwater’s posts, invite their Facebook friends to like their page, and share
the upcoming vitaminwater events. The goal for a Facebook post is to have a minimum of 200 shares.
Twitter and Facebook platforms for vitaminwater are free of cost.
i. Each of vitaminwater’s social media outlets will hype up the Scavenger Hunt by promoting it
September 2015 through October, prior to the beginning of the seven day challenge. The prizes for
participating and the grand prize will be emphasized through Twitter, Instagram, and Facebook posts.
The Scavenger Hunt participants will have the option to share their posts through Twitter and Facebook
to gain more points. The vitaminwater account will post the daily challenge on their social media outlets
each day to encourage their audience to participate. To support the message “Hydrate Your Journey”
vitaminwater will make posts with tips to help along your life journey.
ii. Concert promotion will begin as soon as the Scavenger Hunt is over and will be the main focus on the
website and microsite. The tagline that will be promoted is “Hydrate for the New Year”. Photos of one of
the vitaminwater bottles and a New Year’s resolution that goes with the flavor name will be a theme of
Facebook posts. For example, there is a bottle flavored focus. A photo of the bottle and a question asking
fans, “What will you focus on this year?”
iii. After voting for the Label Contest, there will be the option to share your favorite design on Facebook
or Twitter to help spread the word of the contest.
iv. The Revive Festival will be heavily promoted throughout April and May over social media and the
website. Twitter will engage fans by posting photos of the possible events happening at the festival. For
example, they may post a photo of a paint party and a foam party, and then ask the Twitter audience which
event they would prefer to transpire at the festival. After the fans respond to the tweet, vitaminwater will
answer that both events will be happening, pleasing all fans no matter how they voted. Facebook will post
photos of the Revive Festival as it is happening.
v. The television commercials will also be played on vitaminwater’s microsite and social media sites. All
advertisements will be humorous in order to grab our target markets’ attention and to continue the comical
theme vitaminwater was previously using.
YouTube and Online Radio								 $25,000
Interstitial advertisements will be played on YouTube and Spotify using the same commercials that are
used for television and adapted for online radio. They will be shown before music videos for Enrique
Iglesias and Ariana Grande two weeks before each event. These interstitial advertisements will capture the
listeners’ full attention because they are unable to continue listening until after the ad is finished. This is
also an affordable way to reach consumers, costs can be found in the Media section.
Email
In an effort to spread the word about the concerts more effectively we will work with clubs, fraternities,
sororities and organizations on University campuses to send an email out to their students. Our goal is
to have 75% of the emails sent are opened and that there is an increased amount of participation from
members of these organizations. The campus will send the email, so students are more likely to open it
when they trust the source.
Instagram
Instagram is a social media platform vitaminwater will utilize to share eye-catching photos promoting
their product. This platform strongly appeals to the Social Sippers because they utilize social media
17
18
often. The “Hydrate Your Journey” slogan will be shown throughout the Instagram posts. Instagram will
be used to post photos of the ongoing events and contests while including Ariana Grande, Kevin Hart and
Enrique Iglesias in content. The content will be humorous in order to grab the target market’s attention as
well as continue their current strategy. vitaminwater currently is receiving around 200 likes on their posts,
the goal is to raise that number to 600 likes per post.
i. During the Scavenger Hunt, Concert, and Revive Festival vitaminwater will post the daily challenge
on their Instagram feed to increase participation. Fans may tag vitaminwater in their photos from these
events and they will appear under vitaminwater’s profile on Instagram.
Snapchat										 $100,000
Snapchat is a popular platform for the individuals in our primary target market and vitaminwater will
use sponsored stories as well as live stories. The sponsored story will have high engagement because it
is added to the story feed of every person who has a Snapchat account. Having commercials on Snapchat
is a relatively new feature, so users are not fed up with it yet and will be more accepting of watching a
commercial on their story feed. The live story allows Snapchat users in the area to add their own ‘snaps’
to the vitaminwater live story. The objective is to have 90% of the 26 million Snapchat users in the
United States view each of our 24 hour sponsored stories.
i. During the Revive Festival there will be a live Snapchat story, which will allow for participating
individuals to include their snap into vitaminwater’s sponsored Snapchat story. This way people who
are at the festival can be a part of vitaminwater and those who are not at the festival still know what is
happening.
Measuring Effectiveness
Before the campaign, we will conduct a pre-test on our ideas by using a survey to gauge the
responsiveness of the campaign. Eight weeks into the campaign, the Scavenger Hunt, we will survey the
consumers in our target market again to see how their perception of the brand has changed. The results
will affect the campaign moving forward. We will survey consumers again in January and in May to
gauge the effectiveness of the campaign and make adjustments as needed. We will survey consumers
who participated in the vitaminwater events as well as consumers who have seen the advertisements and
promotions but have not actively participated.
We will measure the effectiveness of our traditional marketing based on how many people attend and
participate in events and the exposure to promotions. We will keep track of how many people are
attending events, such as the concerts and the festival, as well as how many people are participating in
the other events, including the Scavenger Hunt and Label Contest. After events we will track the sales
volume purchased, specifically in the target geographic areas. To measure the effectiveness of Ariana
Grande and Enrique Iglesias we will survey consumers who will rate on a Likert Scale before and
throughout the campaign to gauge how perceptions have changed. The return on celebrity investment will
also be measured using revenue minus the cost of celebrity divided by cost of celebrity. We will measure
how many people are being exposed to the promotions that vitaminwater is running using rating points
and cost per thousand impressions.
We will be measuring the effectiveness of all digital marketing outlets by calculating the amount of page
views and the click through rate on the website, microsite, YouTube and Spotify. The social media sites
in which vitaminwater have an account will be measured by the amount of shares, likes, and retweets
each post receives. The focus for Facebook posts is the amount of shares and for Twitter it is retweets.
This is because when users retweet and share it reaches the largest audience possible. Instagram has the
option of comments and likes; however not every Instagram post requests a comment, thus likes are
to measure the effectiveness. A Nielsen On-Line Brand Effect (OBE) Study will also be conducted. This
study is used by large companies and measure the effect the online campaign has on purchase intentions.
The test focuses on effectiveness and will be conducted in January 2017 and if the results are positive we
will continue on as planned. If the results are negative the campaign will be re-evaluated. The estimated
cost of this is $500,000.
Sales Forecast
The three year sales forecast is based on a .0125% increase during 2015 and a 7% increase during
2016 and a 5% increase from 2017 through 2018. There will be a 7% increase during the first year
of the campaign because that is when it will be new. There is a lot of competition in the market and
vitaminwater already has 62% of the market share. Also, the enhanced flavored water industry in general
is currently in a decline. By implementing the marketing tactics vitaminwater will see a 7% increase the
first year followed by a 5% sales increase each year after.
As seen in Table 4, the total sales increase from $692,773,765 to $ 834,757,509 after implementing
the marketing tactics. This will lead to a 17.01% net sales increase. Without the marketing tactics
vitaminwater would see a slight drop in sales instead of the increase, as seen in Graph 1. We will measure
the effectiveness of this campaign by comparing sales and brand awareness at the end of every year. If a
17% increase in sales is not achieved by the end of 2018, we will re-evaluate the campaign.
Table 4: Sales Forecast
Graph 1: Sales Forecast Graph
19
References
5 Brilliant Microsites and Why They’re so Effective. (2014, March 19).
Advertising Age. (2014, December). Retrieved from Advertising Age Journal.
Alleger, Jason. “The Conversation Starter.” Penna Powers. N.p., 7 Aug. 2012. Web. 15 Nov. 2014.
Belch, G. E., & Belch, M. A. (n.d.). Advertising and Promotions: An Integrated Marketing 		
	 Communications Perspective.
Colao, J. J. (2013). Pew Study Suggests that Snapchat has 26 Million U.S. Users. Forbes Report.
Cripps, M. (2014, December 5). Building Microsites that Work. Retrieved from Media Connection.
Farris, P. W., Bendle, N. T., Pfeifer, P. E., & Reibstein, D. J. (2010). Marketing Matrics: The Definitive
	 Guide to Measuring Marketing Performance (Second Edition ed.). Pearson.
Gamble, J. E. (2010). Competition in Energy Drinks, Sports Drinks, and Vitamin-Enhanced Beverages.
	 (2013). Local Television Market Universe Estimates. The Nielsen Company.
Hemley, D. (2013, September 10). Tips for Using Instagram for Business. Retrieved from Social Media
	Examiner.
Marketing with Twitter, Twitter for Business. (2014, November 10). Retrieved from Twitter.
Nelson, H. G., & Stolterman, E. (2003). The Design Way: Intentional Change in an Unpredictable World:
	 Foundations and Fundamentals of Design Competence. Educational Technology.
Nielsen. (2014, December 2). Retrieved from The Nielsen Company: http://www.nielsen.com/us/en.html
Pew Research Internet Project. (2014, December). Retrieved from Pew Research Center.
Poggi, Jeanine. “TV Ad Prices: Football Is Still King | Media - Advertising Age.” Advertising Age Media
	 RSS. N.p., 20 Oct. 2013. Web. 15 Nov. 2014.
Running a World-Class Scavenger Hunt has Never Been So Easy. (2014, November 15). Retrieved from
	goosechase.
The 2013 Thumbnail Media Planner. Rochester, MI: 2020:Marketing Communications LLC, 2013. Print.
Tompros, Kalle. “YouTube Advertising Options for Budgets of All Sizes.” Search Engine Watch. N.p., 25
	 Apr. 2012. Web. 15 Nov. 2014.
“TVB - TV Cost & CPM Trends- Spot TV Primetime.” TVB - TV Cost & CPM Trends- Spot TV
	Primetime. N.p., n.d. Web. 16 Nov. 2014.
Williams, J. D., & Goldsworthy, P. (2012). Breaking Down the Chain: A Guide to the Soft Drink Industry.
	 ChangeLab Solutions.
20
Appendix A
SWOT MATRIX
STRENGTHS
-Diverse extensions and flavors
-Resources under Coca-Cola ownership
-Unique comedic packaging and music connection
WEAKNESSES
-Negatively viewed as a sugar-loaded drink
-Brand confusion
-Misleading health claims
-Non eco-friendly packaging
OPPORTUNITIES
-Health conscious trend
-Partner with health conscious brands
-Increasing Digital Media
-Eco-friendly Trend
THREATS
-Large amount of competition
-New entrants may enter the market
-Brand image/lawsuit
21
Appendix B
TOW MATRIX
The TOW Matrix was created based on the SWOT Analysis and reveals four strategies for vitaminwater
based on the SWOT Analysis.
vitaminwater TOW Matrix O
External Opportunities
-Health conscious trend
-Partner with health conscious
brands
-Increasing Digital Media
-Eco-friendly Trend
T
External Threats
-Large amount of competition
-New entrants may enter the
market
-Brand image/lawsuit
S
Internal Strengths
-Plentiful flavor options
-Under Coca-Cola ownership
-Generally healthier than soda
-Unique packaging and
advertising
SO
“Maxi-Maxi” Strategy
Explain the benefits of
vitaminwater and how they
can correlate with increasingly
health-conscious and eco-
friendly consumers.
Promote vitaminwater as a
trusted brand by capitalizing
on their unique advertising
approach.
ST
“Maxi-Mini” Strategy
Utilize the multiple flavor
options to stand out against
competitors and gain a larger
consumer base.
Create accurate content on
packaging and advertisements to
regain the trust of consumers.
W
Internal Weaknesses
-Negatively viewed as a sugar-
loaded drink
-Brand confusion
-Misleading health claims
-Non eco-friendly packaging	
WO
“Mini-Maxi” Strategy
Partner with health and
environmentally conscious
companies to improve the image
of vitaminwater.
Utilize digital media to further
to establish the identity of
vitaminwater.
WT
“Mini-Mini” Strategy
Eliminate any misleading
content or health claims and
move toward an honest and
straightforward marketing
strategy.
Look toward eco-friendly
packaging to challenge
competitors.
22
Appendix C
Comparing vitaminwater to direct competitiors, SoBe Life Water and Propel Water
Enhanced Water vitaminwater SoBe Life Water Propel Water
Parent
Company
Coca Cola Company Pepsi Co. Pepsi Co. (Gatorade)
Price 6 16.9oz: $4.99
8 12oz: $4.99
24 20oz: $23.99
12 20oz: $12.58
1 20oz: $1.02
6 16.9oz: $3.39
1 20oz: $1.09
Zero Calorie
Option
Yes, vitaminwater zero Yes Yes (all are zero calorie)
Targeting 18-to-24 18-to-24 Over 25
Social Media
Facebook:
Twitter:
Instagram:
4,100,000 likes
128,000 followers
11,895 followers
822,200 likes
9,400 followers
N/A
511,000 likes
3,500 followers
N/A
Brand
Recognition
vitaminwater has a
strong music connection
and comedic approach
SoBe has been
utilizing their new
twisted bottle design
to set them apart
Propel had a unique
cap on the bottle but
changed it, known for
propel powder packs
Competitive
Strategy
Due to declining sales
vitaminwater competes
on price and provides
more product variety
Viewed as an edgy
and appealing drink
because of their
advertising
Propel is positioning
itself as a beverage
for the gym, or while
causally working out
daily
Growth
Potential
High because there is
a lot of variety, still
missing out on the
opportunity to reach
the18-to-24 market
Medium because of
limited variety within
SoBe but an easily
recognizable brand
Low because of
limited visibility
and the widespread
use of Gatorade and
other sports drinks for
working out
Competitive
Advantage
Perceived as the leader
in the flavored water
category with a market
share of 62%
Viewed as an edgy
and appealing drink
because of their
advertising
Is part of Gatorade,
promoted as the water to
drink while working out
23
Appendix D
Number of Respondents in Each Age Segment
Appendix E
Ethnicity of Survey Respondents
Appendix F
Gender of Survey Respondents
24
Appendix G
Types of Beverages Consumed
Appendix H
Distribution Preference to Purchase Non-Alcoholic Beverages
Appendix I
Classification of vitaminwater by Respondents
25
Appendix J
Descriptive Analysis of Means from Survey 2.
Appendix K
We conducted a linear regression analysis using the stepwise procedure. We wanted to test which of our
independent variables helped predict purchase intention. All variables were included in the analysis, and
were allowed to enter and fall out of the regression model based on their significance level. The regression
analysis shows that a feel good attitude, sweet craving and being physically active are strong predictors of
purchase intention of vitaminwater.
26
0.686
0.195 0.176
0.0
0.2
0.4
0.6
0.8
1.0
Feel Good Attitude Sweet Craving Physically Active
Purchase Intention
Appendix L
These are the questions included on Survey 2 without demographical information. Respondents rated
each question based on a Likert Scale.
1) I would purchase vitaminwater
2) I feel good about drinking vitaminwater
3) I consider vitaminwater as healthy
4) When I drink vitaminwater I am getting my daily vitamins
5) I drink vitaminwater in place of water
6) I consider vitaminwater to be a sports drink
7) I drink vitaminwater while being physically active
8) I consider vitaminwaterto have artificial flavors and/or taurine
9) I like the flavors vitaminwater offers
10) I drink vitaminwater when I want something sweet
11) I look up nutrition facts on all my food and drink
12) I would feel guilty if I didn’t recycle
13) I live a healthy lifestyle
14) The word “hustle” has a positive connotation
15) Social media influences my decisions on what I consume
16) I like to listen to pop music
17) I like to listen to country music
18) I like to listen to rap music
27
Appendix M
Photos depicting the brainstorming process to define our target market.
28
Appendix N
The timeline for the marketing campaign.
	
Events Contests Promotions
2015 September Scavenger Hunt
October Scavenger Hunt Scavenger Hunt
November Concert
December Concert
2016 January Concert Label
February Label Contest Label Contest
March Label Contest Label Contest
April Label Contest Label/Festival
May Festival
June Festival Brand Ambassador Festival
July Brand Ambassador
August Brand Ambassador
September Scavenger Hunt
October Scavenger Hunt Scavenger Hunt
November Concert
December Concert
29
Appendix O
Marketing Tactics Flowchart
30
Appendix P
31
Appendix Q
The celebrities endorsers for vitaminwater are Ariana Grande, Enrique Iglesias and Kevin Hart.
32
Appendix R
Scavenger Hunt Challenges
Day Daily Challenge Extra Points Explanation
#MeetonMonday Take a video with people you meet
that can say “Hydrate Your Journey”
in another language. The video
requires a minimum of 2 different
languages, each from a different
person
5 per language Incorporates the
vast diversity in
America.
#TravelTuesday Share a photo of the more ecofriendly
route you took today. Instead of
driving try to walk, ride the bus,
carpool, or bike to your destination.
5 for having a
friend or two
join you
Appeals to social
sippers and
ecofriendly trend.
#WorkforitWednesday What are you working towards and
what motivates you to stay focused on
your goal? Create a video raping or
singing to a song that motivates you
to keep working hard throughout your
journey.
10 if a musical
instrument is
played.
Promotes
vitaminwater’s
image/slogan.
#ThoughtfulThursday Choose a random act of kindness.
Take a picture or video of a
thoughtful act towards someone or
giving back to the community. For
example participate in a walk/run
for charity, volunteering, or simply
lending a helping hand.
10 for each
additional
captured good
deed.
Exemplifies
vitaminwater’s
new focus on
service for
the world and
environment.
#FinallyFriday Manage your time. Make time for
fun. Take a break from the work
attire and dress up. Give us your best
Hawaiian-themed outfit.
5 for giving your
vitaminwater a
tropical look.
Encourages
time for a break
during the
journey.
#SpookySaturday Happy Halloween! This is your day to
be whoever you want to be. Dress up
and have a blast!
10 for dressing
up your
vitaminwater
bottle.
High
participation
expected because
of Halloween.
#SuccessfulSunday Set goals to achieve dreams in
your journey. What is your biggest
accomplishment? Write it down and
share it.
Up to 20 if you
draw it, paint
it, sculpt it, use
food or another
medium.
Relates to
vitaminwater’s
new slogan,
“Hydrate Your
Journey.”
33
Appendix S
The label template that participants of the label contest would be required to use.
34
Appendix T
Commercial Script- 30 Seconds
Commercial 1 will star the new celebrity endorser, Enrique Iglesias, while embodying vitaminwater’s
new slogan, “Hydrate Your Journey”, and portraying a meaningful yet tastefully humorous vibe.
Scene One: shows the silhouette of a toddler and a father in front of the bright lights of the paparazzi
and screaming fans. Time elapses showing the toddle silhouette grow into his teens. The paparazzi and
fans close in on the father. Enrique sneaks away from the crowd, and with a determined smile on his face,
heads off.
Scene Two: Enrique signs the contract, and the shot quickly changes and climaxes to a handshake with
the agent, than to his record being distributed to millions, and finally to the silhouette of a star in front of
paparazzi and screaming fans. Enrique’s mother and father are watching the scene on their television. The
camera shot circles around the star and reveals Enrique’s face.
Flashing Scenes: The scene flashes through shots of him playing in Miami restaurants, auditioning and
being rejected.
Enrique Voiceover: “My journey was an uphill battle and I couldn’t have made it this far, if I didn’t take
time to enjoy the climb.”
Scene Three: Suddenly it all stops and there is silence as Enrique stares blankly at all the world around
him. The noise and chaos comes back and several of his friends are before him and say, “Come on man,
let’s go!”
Enrique Voiceover: 			 Flashing Scenes:
“Give time for yourself.”	 	 Enrique playing a recreational sport with his friends
“Relax.” 				 Enrique relaxing on his boat with his girlfriend
“Prepare.” 				 Enrique is back stage at a concert laughing
“Rejuvenate.” 				 Enrique drinks vitaminwater while standing on the side of a 		
					 large stage with thousands of screaming fans.
“Hydrate Your Journey” 		 Enrique looks into the camera and smiles. 	
Scene Four: Another performer is heard saying “thank you!” to the fans. As Enrique walks on stage
Ariana Grande walks off. He slips the bottle into her hand and heads out into the lights, the crowd erupts
as he walks on stage. Ariana looks up from the bottle, smiles at the camera, and winks.
35

Weitere ähnliche Inhalte

Was ist angesagt?

Integrated marketing communication mix of coca cola
Integrated marketing communication mix of coca colaIntegrated marketing communication mix of coca cola
Integrated marketing communication mix of coca colaGoogle Blogger
 
Energy Drinks Market In India (Red Bull Focus)
Energy Drinks Market In India (Red Bull Focus)Energy Drinks Market In India (Red Bull Focus)
Energy Drinks Market In India (Red Bull Focus)Abhizar Bootwala
 
Coca cola brand positioning
Coca cola brand positioning Coca cola brand positioning
Coca cola brand positioning Hiba Nasir
 
Paperboat PPT
Paperboat PPTPaperboat PPT
Paperboat PPTAnkit Sha
 
Project on marketing strategies of coca cola
Project on marketing strategies of coca colaProject on marketing strategies of coca cola
Project on marketing strategies of coca colaProjects Kart
 
A Study on Consumers' Preference Towards Soft Drinks Product
A Study on Consumers' Preference Towards Soft Drinks ProductA Study on Consumers' Preference Towards Soft Drinks Product
A Study on Consumers' Preference Towards Soft Drinks ProductSanthosh Madheswaran
 
Project report of coca cola summer internship
Project report of coca cola summer internshipProject report of coca cola summer internship
Project report of coca cola summer internshipSourab Kesar
 
Pricing Strategies by Coca-Cola in India
Pricing Strategies by Coca-Cola in IndiaPricing Strategies by Coca-Cola in India
Pricing Strategies by Coca-Cola in IndiaRohan Bharaj
 
Fresh Punch, New product strategy
Fresh Punch, New product strategyFresh Punch, New product strategy
Fresh Punch, New product strategyguest595aed
 
Market Research on Coca-Cola Vs. Pepsi
Market Research on Coca-Cola Vs. Pepsi Market Research on Coca-Cola Vs. Pepsi
Market Research on Coca-Cola Vs. Pepsi Dushyant Singh
 

Was ist angesagt? (20)

Aquafina by PepsiCo
Aquafina by PepsiCoAquafina by PepsiCo
Aquafina by PepsiCo
 
Diet coke case study
Diet coke case studyDiet coke case study
Diet coke case study
 
Integrated marketing communication mix of coca cola
Integrated marketing communication mix of coca colaIntegrated marketing communication mix of coca cola
Integrated marketing communication mix of coca cola
 
Energy Drinks Market In India (Red Bull Focus)
Energy Drinks Market In India (Red Bull Focus)Energy Drinks Market In India (Red Bull Focus)
Energy Drinks Market In India (Red Bull Focus)
 
Coca cola brand positioning
Coca cola brand positioning Coca cola brand positioning
Coca cola brand positioning
 
Paperboat PPT
Paperboat PPTPaperboat PPT
Paperboat PPT
 
Project on marketing strategies of coca cola
Project on marketing strategies of coca colaProject on marketing strategies of coca cola
Project on marketing strategies of coca cola
 
Pepsi Branding
Pepsi Branding Pepsi Branding
Pepsi Branding
 
A Study on Consumers' Preference Towards Soft Drinks Product
A Study on Consumers' Preference Towards Soft Drinks ProductA Study on Consumers' Preference Towards Soft Drinks Product
A Study on Consumers' Preference Towards Soft Drinks Product
 
Coco cola
Coco cola Coco cola
Coco cola
 
Bira 91
Bira 91Bira 91
Bira 91
 
Project report of coca cola summer internship
Project report of coca cola summer internshipProject report of coca cola summer internship
Project report of coca cola summer internship
 
Cadbury cbbe model
Cadbury cbbe modelCadbury cbbe model
Cadbury cbbe model
 
coca cola
coca colacoca cola
coca cola
 
Pricing Strategies by Coca-Cola in India
Pricing Strategies by Coca-Cola in IndiaPricing Strategies by Coca-Cola in India
Pricing Strategies by Coca-Cola in India
 
Fresh Punch, New product strategy
Fresh Punch, New product strategyFresh Punch, New product strategy
Fresh Punch, New product strategy
 
Marketing plan
Marketing planMarketing plan
Marketing plan
 
Market Research on Coca-Cola Vs. Pepsi
Market Research on Coca-Cola Vs. Pepsi Market Research on Coca-Cola Vs. Pepsi
Market Research on Coca-Cola Vs. Pepsi
 
coca cola
coca colacoca cola
coca cola
 
Sprite
SpriteSprite
Sprite
 

Andere mochten auch

California State Polytechnic University Pomona_Full Written Case
California State Polytechnic University Pomona_Full Written CaseCalifornia State Polytechnic University Pomona_Full Written Case
California State Polytechnic University Pomona_Full Written CaseJennifer Chow
 
Features of a Radio Advert
Features of a Radio AdvertFeatures of a Radio Advert
Features of a Radio AdvertHConnell4
 
Consumer Behavior Group Project - Vitamin Water
Consumer Behavior Group Project - Vitamin WaterConsumer Behavior Group Project - Vitamin Water
Consumer Behavior Group Project - Vitamin WaterEyal Shahar
 
Vitamin water case competition
Vitamin water case competitionVitamin water case competition
Vitamin water case competitionThomas Geier
 

Andere mochten auch (6)

California State Polytechnic University Pomona_Full Written Case
California State Polytechnic University Pomona_Full Written CaseCalifornia State Polytechnic University Pomona_Full Written Case
California State Polytechnic University Pomona_Full Written Case
 
Features of a Radio Advert
Features of a Radio AdvertFeatures of a Radio Advert
Features of a Radio Advert
 
Radio ad script
Radio ad scriptRadio ad script
Radio ad script
 
Consumer Behavior Group Project - Vitamin Water
Consumer Behavior Group Project - Vitamin WaterConsumer Behavior Group Project - Vitamin Water
Consumer Behavior Group Project - Vitamin Water
 
Vitamin water case competition
Vitamin water case competitionVitamin water case competition
Vitamin water case competition
 
Radio advertising
Radio advertisingRadio advertising
Radio advertising
 

Ähnlich wie Coca Cola Case Competition

Vitamin Water Presentation
Vitamin Water PresentationVitamin Water Presentation
Vitamin Water PresentationSarah Henderson
 
Running head BUSSINESS PLAN DRAFT1BUSSINESS PLAN2Bu.docx
Running head BUSSINESS PLAN DRAFT1BUSSINESS PLAN2Bu.docxRunning head BUSSINESS PLAN DRAFT1BUSSINESS PLAN2Bu.docx
Running head BUSSINESS PLAN DRAFT1BUSSINESS PLAN2Bu.docxsusanschei
 
Hindustan coca cola beverages pvt
Hindustan coca cola beverages pvtHindustan coca cola beverages pvt
Hindustan coca cola beverages pvtRohit Raj Mishra
 
Stretegic Analysis Of Pepsi
Stretegic Analysis Of PepsiStretegic Analysis Of Pepsi
Stretegic Analysis Of PepsiDawn Robertson
 
Cocacola swot analysis slideshare 2014
Cocacola swot analysis slideshare 2014Cocacola swot analysis slideshare 2014
Cocacola swot analysis slideshare 2014Suleyman Ally
 
Coca-Cola's Acquisition of Glaceau
Coca-Cola's Acquisition of GlaceauCoca-Cola's Acquisition of Glaceau
Coca-Cola's Acquisition of GlaceauAmanda Carullo
 
Coca cola final project- mba- s3 -group (group a )
Coca cola    final project- mba- s3 -group  (group a )Coca cola    final project- mba- s3 -group  (group a )
Coca cola final project- mba- s3 -group (group a )Mohamed Ahmed
 
Coca Cola Presentation according to philips cottler book
 Coca Cola Presentation according to philips cottler book Coca Cola Presentation according to philips cottler book
Coca Cola Presentation according to philips cottler bookHameed Niazi
 
Business research project
Business research projectBusiness research project
Business research projectAditya Purohit
 
ASSIGNMENTCompany descri.docx
ASSIGNMENTCompany descri.docxASSIGNMENTCompany descri.docx
ASSIGNMENTCompany descri.docxrock73
 
Coke | Coca-Cola | Varun Daahal
Coke | Coca-Cola | Varun DaahalCoke | Coca-Cola | Varun Daahal
Coke | Coca-Cola | Varun DaahalVarun Daahal
 
Global Carbonated Beverage Market (2017-2022)
Global Carbonated Beverage Market (2017-2022)Global Carbonated Beverage Market (2017-2022)
Global Carbonated Beverage Market (2017-2022)Abhishek Bhowmick
 
Shruti final pepsi report
Shruti final pepsi reportShruti final pepsi report
Shruti final pepsi reportShruti Puri
 
Running Head VIRGIN MARY BEVERAGE COMPANY1VIRGIN MARY BEVERAGE.docx
Running Head VIRGIN MARY BEVERAGE COMPANY1VIRGIN MARY BEVERAGE.docxRunning Head VIRGIN MARY BEVERAGE COMPANY1VIRGIN MARY BEVERAGE.docx
Running Head VIRGIN MARY BEVERAGE COMPANY1VIRGIN MARY BEVERAGE.docxrtodd599
 
Project report im coke cola
Project report im coke colaProject report im coke cola
Project report im coke colaHITESH BHARTI
 

Ähnlich wie Coca Cola Case Competition (20)

Vitamin Water Presentation
Vitamin Water PresentationVitamin Water Presentation
Vitamin Water Presentation
 
coca cola
coca colacoca cola
coca cola
 
Running head BUSSINESS PLAN DRAFT1BUSSINESS PLAN2Bu.docx
Running head BUSSINESS PLAN DRAFT1BUSSINESS PLAN2Bu.docxRunning head BUSSINESS PLAN DRAFT1BUSSINESS PLAN2Bu.docx
Running head BUSSINESS PLAN DRAFT1BUSSINESS PLAN2Bu.docx
 
Hindustan coca cola beverages pvt
Hindustan coca cola beverages pvtHindustan coca cola beverages pvt
Hindustan coca cola beverages pvt
 
Stretegic Analysis Of Pepsi
Stretegic Analysis Of PepsiStretegic Analysis Of Pepsi
Stretegic Analysis Of Pepsi
 
Cocacola swot analysis slideshare 2014
Cocacola swot analysis slideshare 2014Cocacola swot analysis slideshare 2014
Cocacola swot analysis slideshare 2014
 
Report pepsi co.
Report   pepsi co.Report   pepsi co.
Report pepsi co.
 
marketin2.pptx
marketin2.pptxmarketin2.pptx
marketin2.pptx
 
Coca-Cola's Acquisition of Glaceau
Coca-Cola's Acquisition of GlaceauCoca-Cola's Acquisition of Glaceau
Coca-Cola's Acquisition of Glaceau
 
Coca cola final project- mba- s3 -group (group a )
Coca cola    final project- mba- s3 -group  (group a )Coca cola    final project- mba- s3 -group  (group a )
Coca cola final project- mba- s3 -group (group a )
 
Coca Cola PEST & SWOT analysis.
Coca Cola PEST & SWOT analysis.Coca Cola PEST & SWOT analysis.
Coca Cola PEST & SWOT analysis.
 
Coca Cola Presentation according to philips cottler book
 Coca Cola Presentation according to philips cottler book Coca Cola Presentation according to philips cottler book
Coca Cola Presentation according to philips cottler book
 
Business research project
Business research projectBusiness research project
Business research project
 
Coke vs pepsi ppt
Coke vs pepsi pptCoke vs pepsi ppt
Coke vs pepsi ppt
 
ASSIGNMENTCompany descri.docx
ASSIGNMENTCompany descri.docxASSIGNMENTCompany descri.docx
ASSIGNMENTCompany descri.docx
 
Coke | Coca-Cola | Varun Daahal
Coke | Coca-Cola | Varun DaahalCoke | Coca-Cola | Varun Daahal
Coke | Coca-Cola | Varun Daahal
 
Global Carbonated Beverage Market (2017-2022)
Global Carbonated Beverage Market (2017-2022)Global Carbonated Beverage Market (2017-2022)
Global Carbonated Beverage Market (2017-2022)
 
Shruti final pepsi report
Shruti final pepsi reportShruti final pepsi report
Shruti final pepsi report
 
Running Head VIRGIN MARY BEVERAGE COMPANY1VIRGIN MARY BEVERAGE.docx
Running Head VIRGIN MARY BEVERAGE COMPANY1VIRGIN MARY BEVERAGE.docxRunning Head VIRGIN MARY BEVERAGE COMPANY1VIRGIN MARY BEVERAGE.docx
Running Head VIRGIN MARY BEVERAGE COMPANY1VIRGIN MARY BEVERAGE.docx
 
Project report im coke cola
Project report im coke colaProject report im coke cola
Project report im coke cola
 

Coca Cola Case Competition

  • 1. American Marketing Association Collegiate Case Competition December 17, 2014 vitaminwater Hydrate Your Journey
  • 2. Hydrate Your Journey Table of Contents Executive Summary 1 Introduction 1 SWOT Analysis 2 Competitor Analysis 4 Current Trends 4 Research Methodology 5 Research Objective Study 1 Study 2 Segmentation Analysis 7 Primary Target Market Analysis Secondary Target Market Analysis Marketing Plan and Strategies 9 Marketing Objectives Key Issues Facing vitaminwater Positioning Media Plan 9 Media Objectives Media Strategies Media Mix Media Budget Media Flowchart Advertising and Promotional Campaign 12 Sales Promotion Public Relations Scavenger Hunt Concerts and Festival Label Contest/Packaging Commercial Extra Incentive Digital Marketing 16 Website and Microsite Internships Twitter and Facebook YouTube and Online Radio Email Instagram Snapchat Measuring Effectiveness 18 Sales Forecast 19 References 20 Appendix A-T 21 Yo Hidratare Tu Camino
  • 3. Executive Summary vitaminwater is a market leader in the enhanced flavored water beverage industry but has been facing many problems the last few years that may threaten the hold that vitaminwater currently has on the industry. The enhanced flavored water market, including vitaminwater, has been facing declining sales over the last five years. There is also brand confusion about when and where consumers are expected to drink the beverage. Consumers may even see vitaminwater as a sports drink which is contrary to where vitaminwater sees itself. Another problem for vitaminwater is that their marketing tactics lack cross appeal and they need a message that appeals to diverse consumer groups. The target market that vitaminwater would like to focus on is the 18-to-24 age group. In order to solve these key problems we identified a primary target market that can be categorized into two segments: the “Social Sippers” and the “Gratified Guzzlers.” Social Sippers are connected to digital media and drink vitaminwater sparingly, while the Gratified Guzzlers are content with the beverage and drink large amounts of it. In order to appeal to this target market, vitaminwater must leverage trends that these segments find important. Some of these trends include a celebrity culture, widespread digital media, diversity and openness, and the environment. We will reposition vitaminwater as the enhanced flavored water beverage that brings you flavorful experiences, humor and rhythm throughout your journey. To reinforce this positioning and to appeal to the target market we identified we developed a series of tactics that are tied to trends and are centered on social media. Our marketing tactics leverage an understanding of the consumer, vitaminwater’s current capabilities, and enduring trends that connect to diverse consumer groups in the United States of America. The events that will be implemented are a Scavenger Hunt, Concert, Label Contest and Festival. We will develop a campaign that will be sustainable and can be repeated for future years building brand loyalty with the new target market. Our tactics begin with generating buzz for the Scavenger Hunt in order to engage our new target market. The tactics conclude with a festival to incentivize our loyal target market who has been on the journey of the campaign with us. Introduction The Glacéau Company was founded in New York City by Darius J. Bikoff in 1996, and it consists of smartwater, vitaminwater and fruitwater. In 1998 smartwater was launched and two years later, vitaminwater. The beverages were a success and experienced significant growth in the 2000s before being purchased by The Coca-Cola Company in 2008. The Coca-Cola Company is a prominent brand in the beverage industry and has opened up opportunities for vitaminwater. In 2010, with more consumers concerned about the amount of sugar and calories they were consuming, vitaminwater zero was introduced into the market. The extensions of vitaminwater include the base drink, vitaminwater zero, vitaminwater zero drops and vitaminwater energy. The drops and energy drink are the newest additions to the vitaminwater family and do not make up a significant amount of sales. There are eight different flavors for the vitaminwater base and eight flavors for vitaminwater zero. Each flavor also has a unique name that describes the name with a short, humorous description on the label. The most popular flavors are vitaminwater zero squeezed, vitaminwater water zero xxx, and vitaminwater base xxx. The non-alcoholic beverage industry is worth about 118.3 billion and there is an average annual sales growth rate of 10%. Based on information provided in the case, vitaminwater made $1,016,626,320 in sales in 2009 but dropped to $723,307,470 in 2013 and is on track to continue to decline throughout 2014. That is a decrease of 28.9% in sales with an average decrease of 5.8% per year. Most of vitaminwater’s total volume sold is through grocery stores followed by convenience stores. The channel with the largest portion of sales is convenience stores followed by grocery. According to the data provided by the 1
  • 4. Coca-Cola Company, most vitaminwater is bought individually in 20 ounce bottles. It is also sold in 16.9oz and 12oz bottles, which have a slightly different packaging. vitaminwater zero makes up 32% of vitaminwater sales and most vitaminwater is purchased by repeat consumers. vitaminwater has tried different approaches of advertising by using celebrity endorsers ranging from 50 Cent, professional athletes, and now currently to comedian Kevin Hart. SWOT Analysis Strengths i. Market Leader vitaminwater is a market leader in the enhanced flavor water category with a 62% market share. Since vitaminwater was launched in 2000, it has continued to create many different flavor options for its consumers. Different taste options appeal to consumers because the diverse variety allows them to have the ability to choose their own particular flavor, as if the drink is customized. They have also created new brand extensions like vitaminwater zero and vitaminwater energy that appeal to different types of consumers. vitaminwater zero drops are a great alternative for the consumers who use drink mixes. The zero calorie options of vitaminwater appeals to the health-conscience consumers who are concerned about their sugar and calorie intake. vitaminwater energy appeals to thrill seeking individuals who are open to new experiences. ii. Subsidiary of a Powerful Brand Since vitaminwater is owned by the most dominant beverage company in the world, it has an advantage over other enhanced flavored water drinks. With the resources of Coca-Cola, vitaminwater has gained store shelf space because of its renowned owner. Under the ownership of an established company such as Coca-Cola, vitaminwater is automatically given a strong presence in the beverage industry. Consumers have already built a level of trust with Coca-Cola, which will increase the chances of them trying other types of beverages under their ownership. iii. Well-Known Brand As a brand, vitaminwater has its own personality that stands out among other beverages. The drinks are visually colorful and appealing to the eye. Each bottle has a unique flavor with a catchy and distinctive name. The labels of each bottle have a humorous story that can encourage consumers to buy the beverage. vitaminwater has held a close connection to the music industry through partnerships throughout the industry. Weaknesses i. Confusing Health Claims Considering vitaminwater is advertised as a healthy and nutritious drink, its ingredients do not necessarily back up this claim. By far one of the largest and most impactful weaknesses for vitaminwater is its artificial ingredients and high levels of sugar. Consumers are increasingly checking the nutrition information on food and beverages before they purchase such items, and the ingredients in vitaminwater have the possibility of deterring consumers from purchasing the product. ii. Slow Response to Consumer Needs When the Coca-Cola Company acquired vitaminwater it introduced some potential barriers. Now that vitaminwater is part of a larger company, they must compete for company dollars to insure that their brand is promoted. It also takes longer for decisions to be made because there are more requirements before a change can be made. Coca-Cola is well known for its soda, which is not considered healthy. vitaminwater may be associated with soda because of Coca-Cola which will negatively impact the healthy image that vitaminwater is trying to stimulate. iii. Brand Confusion Brand confusion is a prominent weakness that needs to be addressed because vitaminwater is advertised as a healthy drink but contains large amounts of sugar. In response to the high sugar levels, vitaminwater 2
  • 5. zero was introduced but still has artificial ingredients and therefore alienates some of the health-conscious consumers. vitaminwater also used athletes to endorse their product, even though it does not want to be seen as a sports drink. This makes the consumer confused and left trying to figure out the identity of vitaminwater. iv. Legal Issues vitaminwater has incurred legal issues for promoting itself as a healthy beverage and benefiting consumers in many ways that may not necessarily be true. Promoting a misleading image for itself is a major disadvantage for the company and may cause a portion of the population to shy away from buying vitaminwater products. v. Not Eco-Friendly Another weakness for vitaminwater relates to their bottles and packaging materials used. People are not only becoming more aware about health, but consumers are also reaching towards products that are environmentally friendly. The current bottles and packaging used for vitaminwater are not eco-friendly, which in turn cuts off a portion of the market from buying their products. Opportunities i. Health Conscious Partnership Over the last few years, being health conscious has been an increasingly popular trend that will provide opportunities for vitaminwater. As Americans watch what they eat and become more active, healthy options are quickly becoming popular. Currently, less people are drinking sugar filled drinks like soda and are instead, drinking more water. vitaminwater can take advantage of this trend by being the beverage that health conscious people choose over soda. Since vitaminwater is stationed as a healthy beverage and wants to stand out against traditional sugary drinks, there are many opportunities for the product to partner with other health-conscious businesses and companies. Many schools, for example, have banned soda machines and only offer healthier alternatives. Customers who place an importance on eating healthy tend to eat at popular restaurants like Chipotle and Subway, which allows for partnership opportunities with these restaurants and vitaminwater. ii. Appeal to Target Market The amount of attention consumers pay to popular culture and what celebrities are doing provides opportunities for vitaminwater to appeal to the 18-to-24 year old target market that they are seeking. Many consumers are heavily using mobile phones and social media to share photos and stay connected with friends and popular culture. Utilizing digital media broadens the chance that consumers will become more aware of vitaminwater in general, as well as share their consumption experience with others. iii. Green Visibility Due to the increase in eco-friendly products, vitaminwater has the opportunity to alter its packaging to appeal to consumers who are drawn to natural and green products. vitaminwater bottles use a very thick plastic and a large cap compared to eco-friendly products. If they change the plastic in the bottle they have the ability to advertise to consumers their commitment to the environment. This is important to young people today and has the potential to increase brand awareness and show consumers the many benefits that vitaminwater has to offer. Threats i. Competition One of the major threats to vitaminwater is the number of competitors in the enhanced flavored water beverages industry. Some of these brands include SoBe Life Water, Propel, Dasani, Aquafina FlavorSplash, and Nestle. Of these competitors, SoBe Life Water and Propel pose the biggest threat, refer to the Competitor Analysis for more details. Propel and SoBe Life Water both contain fewer calories per bottle than vitaminwater, which appeals to the more health-conscious consumer. Furthermore, on 3
  • 6. average, vitaminwater sells for a higher price than that of its competitors. The competitors also hold a prominent place in the market and are clearly identified for their purpose. Propel, for example, is known for preventing dehydration and producing a quality product. SoBe Life Water holds an image for pure and flavorful drinks. ii. Negative Association with Lawsuits Brand image is a threat for vitaminwater as lawsuits have been filed claiming the product has false advertisements. It is promoted as being a healthy drink alternative, in which you are able to consume electrolytes and a variety of vitamins including A, B, C and E. However, while vitaminwater may provide vitamins and electrolytes, it has artificial flavors and 32 grams of sugar, roughly the same sugar content as carbonated beverages. With many consumers becoming aware of this factor, there is the risk that buyers will purchase a substitute drink choice. A SWOT Matrix can be seen in Appendix A, and a TOW Matrix in Appendix B. Competitor Analysis The beverage industry is divided up into many categories including sports drinks, energy drinks, and enhanced flavored water to name a few. vitaminwater’s main direct competitors in the enhanced flavored water market are SoBe Life Water and Propel. Their indirect competitors in the hydrating beverage category in general include mainly Gatorade and Sparkling Ice. Gatorade is a trusted, popular and profitable sports drink brand. They use big name athletes and center their brand around hydration on the field. vitaminwater does not want to compete against such a large brand. Sparkling Ice is not comparable to a brands like vitaminwater, SoBe Life Water and Propel because the cost per bottle is much higher. Due to this, Sparkling Ice is competing against other private label brands that charge more per bottle. vitaminwater’s direct competitors include Propel and SoBe Life Water; both are under the parent company of Pepsi Co. To prevent Propel and SoBe from cannibalizing each other, Propel is trying to target the over 25 age group. SoBe Life Water is targeting the same group as vitaminwater, the 18-to-24 age group. vitaminwater is priced slightly higher than Propel and SoBe Life Water and all three offer a zero calorie option. In advertising, SoBe tends to have a more provocative and edgy approach, compared to Propel which focuses more on those who work out daily. The bottle shape of the SoBe Life Water is twisted at the bottom which makes it stand out. Propel has a skinny bottle to portray a sporty image. Synopsis of Competitor Analysis Based on our evaluation and the information presented in Appendix C, Propel and SoBe Life Water are the main competitors to vitaminwater. The pricing of vitaminwater is on average slightly higher than the competition. All of these beverages offer a zero calories option. SoBe Life Water has a unique bottle shape along with edgy and appealing advertising. They have a limited variety that is growing as well as an easily recognizable brand. Propel used to have a unique cap which it was known for but has since moved away from that and is now known more for its powder packs. They position themselves as a workout beverage but have a relatively low visibility. Both SoBe and Propel have a significantly lower number of likes on their Facebook pages and followers on Twitter as well as no Instagram account. vitaminwater is the market leader with a lot of variety using music and a comedic approach. They do not have a uniform size of bottle, as their six and eight packs have different sizes than the single or twenty-four packs. Current Trends There are multiple current trends taking place that vitaminwater will apply. Some key trends identified include, being health conscious, fast fashion, diversity, and the emphasis on value. vitaminwater must 4
  • 7. position itself to be seen as a healthy alternative to other beverages like soda but will not be able to position itself as the ultimate health beverage. Many consumers who are interested in a healthy lifestyle are also interested in being eco-friendly. The best way to capitalize on the trend of a busy and fast fashion culture is to move with it and be able to adapt to the constantly changing fashions by utilizing social media. There is an increasing amount of diversity in the United States, especially the Hispanic population. This can be addressed by incorporating other cultures and races throughout the brand. The final key trend that needs to be addressed is the emphasis on getting a ‘good value’ with every product. vitaminwater needs to show that each bottle has a high value placed on it because it is important to consumers. These four trends are important for vitaminwater to consider going forward. Research Methodology Research Objective We completed this study to test our predictions on consumer preferences of vitaminwater and the beverage industry. In order to determine if the 18-to-24 year-old segment was appropriate for this product and to gauge the brand’s 30-to-39 year old loyalists. The results of our analysis were derived from focus groups, in-depth interviews, and our surveys. After analyzing the results, we found our primary and secondary target markets matched our preferred segment of consumers. Study 1 includes the qualitative data using focus groups and in-depth interviews. Study 2 includes the quantitative data using Survey 1 and Survey 2. Study 1 i. Research Approach The objective of Study 1 was to understand the consumer and to find information to include in the quantitative studies. We conducted a focus group to obtain insights on 18-to-24 year old consumer’s perception of vitaminwater. Our goal was to collect information on the segment of consumers who have either tried the beverage or have not. All participants in the focus group were within the target market of 18-to-24 year olds. We then conducted in-depth interviews of heavy-users of vitaminwater were selected that fit our primary and secondary target markets who consumed vitaminwater weekly. ii. Procedure The focus group that we conducted took place during a weekly AMA meeting with our members. There were six groups that consisted of eight persons, each group was moderated by a member of our research team. This session was to evaluate the product’s marketing campaigns, commercials, and its packaging. All participants were able to express their opinion on all vitaminwater products and then were able to sample vitaminwater base or vitaminwater zero. For the in-depth interviews, team members contacted peers they knew from the target areas and reached out to students’ on-campus who were consuming vitaminwater. We asked questions from both survey samples to gauge their opinion on the beverage industry, their consumption of vitaminwater, their perceptions on current marketing tactics, and their opinion on possible opportunities for vitaminwater. iii. Results Focus Groups Quality: Most respondents were unaware that vitaminwater was a product of Glacéau and the Coca-Cola Company. The general perception is that vitaminwater has a bland taste that is overpriced. Inconsistency in their marketing tactics and advertisements has given non-consumers a mixed signal of what they are trying to identify and accomplish as a brand. Awareness: The majority of respondents were unware that vitaminwater had a zero option, zero drops, and a fountain. Although they were aware of the vitaminwater base beverage, there is low consumption 5
  • 8. for it and very little motivation to buy due to other competitive products. Overall: The results revealed that vitaminwater lacks a clear identity. Respondents mentioned that, “there are too many word on the label” and were confused asking, “is vitaminwater a sports drink?” vitaminwater is viewed as a beverage that “doesn’t know if it’s a sports drink, energy drink, or something completely different.” The consensus seemed to be that vitaminwater is rarely an option when deciding what type of beverage to purchase. Respondents attributed the identity problem to the clutter on the packaging and inconsistency in marketing tactics. iv. Results In-Depth Interviews Awareness: Since the participants were heavy users of vitaminwater and consumed the product weekly, they were all aware of the vitaminwater base, vitaminwater zero, and vitaminwater energy products. However, the majority of respondents still were not aware of the zero drops and the fountain drink. Lifestyle: The majority of our heavy users lived a similar lifestyle. The reason why they consumed vitaminwater was because they did not consume other types of beverages that promote a different lifestyle. Participants were not heavily involved in sports, so they did not list sports drinks as their highest consumption. The psychographics of this segment under our primary target market is further described in the Segmentation section. The outcome of Study 1 was used to find relevant questions to test through the survey research. Study 2 i. Research Approach The objective of Study 2 was to use the qualitative data to survey a larger sample size in our target market to find quantitative data about our target market. Survey Sample 1 was distributed to 150 students on campus in the primary target market of 18-to-24 year old. We aimed to reach a diverse range of consumer ethnic heritage and how frequent they consumed vitaminwater. With Survey Sample 2, we aimed to reach our primary and secondary target markets by profiling and distributing the surveys to nearby college campuses, grocery stores, and convenience stores. The final sample used for analysis is based on the 149 respondents, with 5% in our secondary target market and 95% in our primary (Appendix D, E and F). ii. Procedure In Survey Sample 1, all 150 respondents were able to sample vitaminwater base or vitaminwater zero product after they completed the survey. We utilized nominal multiple choice questions in order to determine the types of beverages they were consuming, distribution preferences, their perception of how they would classify vitaminwater in the beverage industry, and which types of vitaminwater products they consumed. We then used contingency questions for how often one consumes vitamin or electrolyte enhanced beverages. There was also one open-ended question to determine what vitaminwater could do to make their product more appealing for consumers in terms of packaging, marketing tactics, and promotions. For Survey Sample 2, we created a quantitative survey that consisted of Likert Scale and nominal questions, which were tailored specifically to vitaminwater and possible psychographics that would correspond to our target markets. Respondents’ were surveyed on their perceptions of the flavors and taste, their knowledge of the vitamins and artificial flavors, and their likelihood to purchase vitaminwater. We also confirmed which category respondents perceived vitaminwater to be placed in the beverage industry. Results of the survey were then analyzed for trends. 6
  • 9. iii. Results Survey 1 (Descriptive) Consumption of Beverages: Of the types of beverages consumed, respondents reported high consumption frequency for bottled water, fruit beverages, and coffee. The lowest frequency reported was for sports drinks. 45 respondents never consume vitamin or electrolyte beverages, while the majority of respondents consume one to three times per week. The beverages that are consumed by respondents favor supermarkets and convenience stores for distribution. Overall: When ranking the significance of various attributes on products in the beverage industry, most respondents were unaware of what attributes vitaminwater had that differentiated itself from other types of beverages. For additional descriptive results see Appendix G, H and I. iv. Results Survey 2 (Statistical Analysis) Conversion to Consumption: 117 of the respondents stated that they have purchased and consumed vitaminwater before, while 32 have not. When running a descriptive analysis, our highest mean was 3.66; which tells us that respondents did not feel strongly positive nor strongly negative towards the vitaminwater products. Purchase Intention: A descriptive analysis was conducted which found that the highest mean was a psychographic for our target market, which was living a healthy lifestyle (3.59). The following highest means included purchase intention (3.55), feeling good when drinking vitaminwater (3.53), and liking the flavors vitaminwater offers (3.53). The lowest mean was that consumers did not drink vitaminwater in place of water (1.9) with the next being social media and if it influences one’s decisions on what one consumes (2.61); see Appendix J. Overall: A correlation analysis was conducted with a co-efficient of .5. The correlation results show a strong relationship between likelihood to purchase and the following variables: attitude toward vitaminwater (.792), perception of the health value of vitaminwater (.523), and how much the flavors are liked (.547). The regression analysis shows that a feel good attitude, sweet craving and being physically active are strong predictors of purchase intention (Appendix K). Survey 2 questions are in Appendix L. Segmentation Analysis In identifying target markets, we aimed for one that would be accessible and illustrate the basis for our marketing strategies. We focused on the primary market of male and female 18-to-24 year olds whose current vitaminwater consumption is down. These consumers are very important because vitaminwater wants to build a relationship to continue throughout their life journey. The secondary target market is the 30-to-39 year olds, male and female, who consume vitaminwater due to being introduced to the beverage as young adults. The 30-to-39 age group will also establish similar brand loyalty in their children. Primary Target Market Analysis i. Secondary and Primary Data Collection The demographical information for the primary target market consists of single, 18-to-24 year old populace. Those in this segment usually attend some type of schooling, either a university or a technical college. According to the 2010 U.S. Census, there are 30,672,088 people who fit this demographic which makes up 9.9 percent of the population of the United States. High school graduates are usually 18 years old and are entering a new journey in life when they need to become more independent. ii. Analyzing the Data The segments described below were determined based on insight from secondary data research, results 7
  • 10. from qualitative and quantitative research and several brainstorming sessions. The brainstorming sessions included the use of design techniques, such as the use of the empathy map. Images of this process can be seen in Appendix M. The empathy map is used to develop the needs, fears, likes and dislikes of the target market which leads to many things including what products and services they prefer to use. All of this information was compiled to find a clear picture of our target market. We identified two separate segments that have parallel characteristics from our primary target market, they are named the Gratified Guzzlers and Social Sippers. All of the findings are based on data and common trends, specifically from in-depth interviews, surveys and the brainstorming sessions. iii. Similarities The results from our findings show that both of these segments have little time and money and purchase vitaminwater when convenient at convenience stores. They are concerned with their future and are comfortable with using technology. At the same time they are critical of the information that they receive through advertisements. They are also social and often share information through friend groups about what products to purchase. These segments utilize public transportation and are often living on a budget but still value brand name products. Another commonality is that they are faced with a lot of stress and are often looking for a way to escape some of the struggles that they are facing by traveling with friends. Often, these experiences or journeys are documented along the way with a mobile phone. iv. Differences Gratified Guzzler Based on our analysis, Gratified Guzzlers love to drink vitaminwater more often than the Social Sippers and they prefer the vitaminwater base drink. These Gratified Guzzlers tend to drink the vitaminwater quickly, in one sitting, in contrast to the sippers. This segment is predominately male and are interested in pursuing their own independent journey while using basic social media platforms such as Facebook (sparingly) without needing constant support. They are active but health does not highly impact their consumption choices. Gratified Guzzlers are happy with the taste of vitaminwater and they do not have a strong opinion on being eco-friendly but acknowledge that it is important. Overall, Gratified Guzzlers are independent, active, easily gratified with consumption options and have a low level of socially conscious consumption. Social Sipper In contrast we found that Social Sippers like vitaminwater but will not drink the entire bottle in one sitting, they will instead sip on it throughout the day. This segment prefers vitaminwater zero and the vitaminwater zero drops and the individuals are predominately female. They are heavily connected to multiple social media outlets to share their life journey with both friends and family. Social Sippers look up to and spend time following the actions and opinions of celebrities, predominately through social media. They want advice and input from others while living a relatively healthy and eco-friendly lifestyle. These Social Sippers are concerned about their outward appearance online as well as in person. Overall, Social Sippers are dependent on social media, influenced by trends and have a high level of socially conscious consumption. Secondary Target Market Analysis The secondary market consists of 30-to-39 year olds, specifically parents with young children. They were introduced to vitaminwater while they were younger and are loyal to the brand. This segment usually buys vitaminwater from large stores like Walmart. It is important that they are not alienated by marketing strategies targeted at the primary market. This segment is not as savvy with technology but are still interested in it to a degree. These consumers will continue to be loyal to vitaminwater and encourage their children to drink the beverage as well. 8
  • 11. Marketing Plan and Strategies Marketing Objectives The marketing objective is to increase sales of vitaminwater by 17% over the first three years. This will be achieved with a 7% increase the first year of the campaign followed by 5% increase each year after. vitaminwater will also increase their presence on social media by creating a Snapchat account and increasing their current platforms including Facebook, Twitter and Instagram. Facebook page likes will increase 100%, Twitter followers will increase by 200% and Instagram followers will increase by 300%. Refer to Appendix C for current numbers of page likes and followers. Key Issues Facing vitaminwater There are three key issues that are currently facing vitaminwater based on the situational analysis. The first is declining sales due to a limited amount of 18-to-24 year olds drinking vitaminwater. Next is that consumers are choosing competition over vitaminwater due to lawsuits and consumers being unsure about whether it is healthy or not. Finally, the inconsistency in the brand message is a key issue of why vitaminwater is having troubles with sales. Positioning vitaminwater is the enhanced water beverage bringing you flavorful experiences, humor and rhythm throughout your journey. vitaminwater is targeting 18-to-24 year old consumers who are currently beginning a new phase in their journey. The flavorful experiences represent the colorfulness and large variety of flavors that the beverage offers. The singer, Ariana Grande, and the events that we will be offering will represent and enhance the image and experiences of loyal consumers. The humor is incorporated in vitaminwater’s history of using comedy as a way to increase brand awareness. They will continue to use humor through a continued partnership with comedian, Kevin Hart, and by using humor in advertisements. The rhythm of vitaminwater is the commitment and connection that they have to music. The use of music and concerts in the campaign of vitaminwater will be shown through singer Enrique Iglesias. vitaminwater is with the consumer, keeping them hydrated on their journey by utilizing flavorful experiences, humor and rhythm. The slogan of the new campaign is, “Hydrate Your Journey.” Those in the target market are at a pivotal part of their journey, either entering college or leaving college. They are having new experiences and making new memories. Your journey is more than just related to college, people of every age are constantly beginning and experiencing new journeys. Each one is different but vitaminwater can be there through it all to hydrate you. vitaminwater will provide you with opportunities to enhance your journey by offering fun events and ways to be involved with the brand. This new slogan is more relevant than the current slogan but builds off the “Hydrate the Hustle” theme so as not to alienate current consumers. The term ‘hustle’ has vague and confusing meanings and sometimes can evoke a negative connotation. We found during the in-depth interviews and observation that it also makes consumers think of sports and being “on the court.” The term ‘journey’ will help clarify that vitaminwater is the “off the court” beverage and it is easier to translate into other languages. Media Plan Media Objectives The main objective of our media plan is to reach our target audience through promotional tactics and advertising with the goal of increasing the sales of vitaminwater. We will increase awareness of the product within our primary target market while keeping our secondary target market in mind. Implementing our marketing campaign will provide measurable results to ensure the product is being advertised to its full potential. 9
  • 12. When the marketing plan is implemented we will focus our strategies on four different target cities: Riverside, California; Kansas City, Missouri; San Antonio, Texas; and Charlotte, North Carolina. In all four areas there is a large population of millennials and there are large universities located nearby in order to reach the target market. Riverside, California is near Los Angeles, a destination city and a large metropolitan area. Kansas City was chosen due to a large number of destination universities in the area drawing in students from all over the country. San Antonio was chosen because of the large amount of diversity, particularly Hispanics, in that area. Charlotte, North Carolina is a central location for both the South and East Coast of the United States. Media Strategies Our media strategies are centered on reaching our primary and secondary target markets in the most efficient way possible and within the $40,000,000 - $60,000,000 budget. It is estimated that there are 115,000,000 households in the United States that have television. For this reason, we are choosing to run commercials informing consumers of the events vitaminwater is launching, as well as introducing the changes that have been made to the product. There are over 300,000,000 mobile phone users across the nation, which indicates that social media will be an effective way to reach our target market. Social media will be highly utilized for our promotional events, including a Scavenger Hunt, label contest, concerts and summer festival. Our marketing campaign will focus on the four cities mentioned above in order to encompass four diverse areas of the country. California and Texas are both designated market areas and contain the top markets for media exposure. We will utilize primetime cable networks to reach our primary and secondary target markets, as well as local channels that are significantly cheaper. Our promotional campaign will be led by the slogan “Hydrate Your Journey.” It will begin in September of 2015 when we will start informing consumers of the Scavenger Hunt taking place in October. Beginning in November, we will launch marketing tactics for the concerts taking place in January. February through April will include the label contest as well the beginning of promotions for the festival in May. See Appendix N for a complete timeline of our events and Appendix O for a flowchart of the marketing tactics. Media Mix Television alone has a 98% reach potential with high geographic flexibility and exposure frequency opportunity. The channels we will focus on advertising are AMC, FX, and ABC Family. Our vehicles include Mad Men, It’s Always Sunny in Philadelphia, and Pretty Little Liars respectively. These media vehicles have been chosen due to the similarities of the viewers of these shows and our target market, according to Advertising Age. In addition to television advertisements, the commercials will be used as interstitial advertisements and will be displayed at the beginning of YouTube music videos for Enrique Iglesias and Ariana Grande. They will be adapted to be played on local radio stations and Spotify. This is an affordable way to reach consumers. Overall, YouTube is a very affordable yet effective way to attract the attention of our designated markets. The commercials will also be played on vitaminwater’s microsite and social media sites. All advertisements will be humorous in order to grab our target market’s attention and continue the comical trend that vitaminwater has used. 10
  • 13. Media Budget Table 1: Broadcast Media Budget Broadcast Cable Television Kansas City, Missouri Riverside, California San Antonio, Texas Charlotte, North Carolina Total Television Households* 941,980 1,604,754 906,210 1,157,920 4,610,864 Number of 30 second Commericials** 200 200 200 200 800 Total $5,000,000 $5,000,000 $5,000,000 $5,000,000 $20,000,000 *(Nielsen, 2013) **1 30sec Commercial= $25,000; CPM= $26 The total budget for broadcast media marketing is $20,000,000, as shown in Table 1. Commercials will be run on cable television and they will be run at an increased frequency around the time of events. There will be a total of 800 commercials run, with 200 running in each major market. There will be three commercials produced: two including a celebrity, $600,000 each, and one without a celebrity, $300,000. This leads to a total production cost of $1,500,000. The three commercials will be run at different times throughout the campaign. Table 2: Digital Media Budget Digital CPM Cost Spotify $10.00 $10,000 YouTube $7.60 $15,000 Total $25,000 As shown in Table 2, the total budget for the digital media marketing is $25,000. We will utilize the digital strategy by having interstitial advertisements run for two weeks before each event. There are four major events: the Scavenger Hunt, concerts, label contest and Revive Festival. This leads to a total of eight weeks of interstitial advertisements. Spotify is an online music site which will cost about $10,000. YouTube will cost $15,000 which was calculated based on an average of 1 million views per week. The budget, in Table 3, comprises all costs incurred to vitaminwater, including traditional and digital media promotions, celebrity endorsements, events, and packaging changes. Media Flowchart See Appendix P for a flowchart of the media plan. 11
  • 14. Table 3: Total Budget Cable Television $20,000,000 Commercial Production $1,500,000 Digital Media $25,000 Sampling $50,000 Coupon Prizes and Promotions $725,000 Fountain Drinks Installation $50,000 Outdoor Advertisement $1,000,000 Celebrity Endorsement $3,000,000 Brand Ambassador $100,000 Philanthropic Cause $7,500,000 Scavenger Hunt $10,000 Hydrate the New Year Concert $1,000,000 Revive Festival $2,000,000 Label Contest $500,000 Packaging Changes $5,000,000 Microsite $60,000 Interns $500,000 Snapchat $100,000 Nielsen On-Line Brand Effect Study $500,000 Total Budget $43,620,000 Advertising and Promotional Campaign Sales Promotions i. Sampling $50,000 We will be handing out free samples of vitaminwater on University campuses in our target cities with Coca-Cola partnerships. This strategy will generate awareness within our target market of the brand and more importantly the promotions such as concerts, competitions and events. We will create avenues for advertising within universities by partnering with college organizations from the schools such as the American Marketing Association. This will create opportunities that would not be possible without affiliation with the colleges. Members will distribute flyers in student centers, residential housing, etc. Students will set up a promotional booth during large campus events and will provide activities, hand out free samples, and promote the current contest that vitaminwater is holding. There are approximately 65,000 college students in each of these areas. Our goal is to spread awareness to at least 75% of these students. Incentives would be offered to each of the student organizations with a donation of $1,000. We will choose popular organizations from the largest schools in each city. Interns will also be hired to help distribute the samples. ii. Coupons $725,000 Coupons will be used for the Scavenger Hunt as an incentive to increase participation. The coupons will start out with a discount on one bottle of vitaminwater and slowly become a larger prize, as points are awarded. Prizes will include $5 Subway gift cards and free downloads of Ariana Grande and Enrique Iglesias songs. $175,000 of the budget will be for Scavenger Hunt prizes and discounts. Coupons will also serve as an incentive to persuade the commercial viewers to visit the microsite. A promotional code will be displayed on the screen and the viewer has 15 minutes after the commercial to enter the code on the microsite to win electronic coupons for vitaminwater products. The total cost of this will be $150,000. 12
  • 15. In our target cities, we will have extra point of purchase incentives to encourage people to buy vitaminwater. For example providing additional coupons at convenience stores near University campuses. vitaminwater sells for $1.09 per bottle. By raising the price to $1.59 and providing 50 cent coupons, the consumer will feel they are getting more value out of their purchase. Getting the best value out of a dollar was a major trend that the general population is concerned about. These coupons will be available at the point of purchase, through email, and with QR codes. Compared to the competition, vitaminwater will appear to be a higher quality beverage that they are getting at a low price. $250,000 will go towards the in-store coupon promotions. Many people are not aware of the fact that vitaminwater has drops. To promote this product and encourage people to purchase the drops, vitaminwater will partner with the Camelbak water bottle brand for a bundle promotion. The Camelbak water bottle was chosen because the brand embodies the active, environmentally friendly image of the new campaign. It is also a popular brand among our target market, especially the Social Sippers. When the consumer buys a Camelbak water bottle, they will receive a one free package of drops. The promotion for this will primarily be in-store signage and package coupons. $150,000 will be used for the Camelbak partnership. iii. Fountain Drinks $50,000 To provide millennials with easy access to the product and introduce more exposure of the product, vitaminwater fountain drinks will be installed in each of the universities that have Coca-Cola partnerships in our target locations. The colleges in our target locations that do not have Coca-Cola partnerships will have the fountains installed in the university’s Subways, due to our partnership with them. Promotions will be implemented such as, getting a discount on meals when pairing with a vitaminwater fountain drink. iv. Outdoor Advertisements $1,000,000 We will place advertisements on public transportation such as buses and light rails. Public transportation will have high visibility and will be selectively located near universities and other locations with a high density of our primary market. Public Relations i. Celebrity Endorsements $3,000,000 The musical celebrity faces of this campaign will be Ariana Grande and Enrique Iglesias. Both of these artists will appeal to both target markets and the brand because they are both popular celebrities that target a broad audience, specifically the growing Hispanic populace. Ariana Grande is appealing to the younger target market and relates to our brand because she is seen as colorful, fun and energetic. She embodies our Social Sipper . Enrique attracts the secondary target market and the Gratified Guzzlers. He is very popular in California and Texas and brings in large crowds to his concerts. Kevin Hart will also be used in the campaign, specifically as the host of the festival, in order to continue their existing image and to have some consistency with current marketing tactics. See Appendix Q for photos of the celebrities. ii. Brand Ambassador $100,000 Along with having celebrity faces for the new campaign, vitaminwater will also find a millennial that embodies the brand’s image. Having a brand ambassador who embodies the slogan will create a strong relationship with the target market. This person will be the target market’s age, participates in similar day- to-day activities and will be working towards many of the same goals. vitaminwater will be accepting applications from June 2016 until the end of July 2016. Individuals can apply by submitting a short essay to the microsite. In the essay, each participant will answer the question, “How do I exemplify the slogan, ‘Hydrate Your Journey’, as defined in vitaminwater’s new campaign.” The winner will be announced in August and will hold the title of the vitaminwater, “Band Ambassador” for one year. They will also win an all-expense paid trip to the next year’s Revive Festival, complete with VIP tickets and backstage passes. 13
  • 16. iii. Philanthropic Cause $7,500,000 vitaminwater will be supporting a philanthropic environmental cause by donating to World Wide Institute. World Wide Institute is a non-profit that is dedicated to helping the environment. This will exemplify that vitaminwater is dedicated to the environment, not only by changing the bottle but by donating and giving back. Environmental awareness is a prominent trend, and it is appealing to the Social Sippers. This event will also be used to improve vitaminwater’s image after all of the negative publicity it gained from accusations and legal actions regarding misleading health facts. During 2016, one percent of all sales will be donated to World Wide Institute. Scavenger Hunt $10,000 i. Strategies and Execution The vitaminwater Scavenger Hunt will be a seven day contest during the final week of October, Halloween weekend. These dates was chosen due to its popularity among millennials. Based on our research, many of the people in our target market dress up, and are highly involved in Halloween related events throughout October. The microsite will provide instructions on how to sign up. Each day will be a different challenge in which individuals will post a photo or video. After each post there will be the option to share it on Twitter and Facebook. Each of the challenges can be completed any day throughout the week, but they all must be completed by Sunday, November 1 at 11:59 pm Eastern Time. The points will add up to various vitaminwater coupons. The extra point options and the more creative people get, the more points they will be awarded. Each challenge will earn participants 10 points, with an additional five points for completing the challenge on the correct day. If vitaminwater is included in the picture or video, an additional five points will be awarded. Two more points will be awarded by sharing the pictures or videos on Twittter and Facebook. Refer to Appendix R for the complete details on all of the challenges. The goosechase app will be used to track participants’ points and will cost vitaminwater roughly $1,000. Concerts and Festival i. Hydrate for the New Year Concert $1,000,000 The New Year of 2016 will be brought in with a concert from vitaminwater. The concert will serve to increase exposure of vitaminwater’s new brand message and new celebrity endorsers, Enrique Iglesias and Ariana Grande. There will be three concerts taking place the first week of the New Year in January 2016. They will take place in three of our target cities: Riverside, California; San Antonio, Texas; and Charlotte, North Carolina. Top winners of the Scavenger Hunt will receive free admission to attend and the label contest will be announced during the concerts. Above all else, it will exemplify vitaminwater’s new twist on “Hydrate Your Journey.” The concert will provide consumers a chance to enjoy themselves and prepare for the challenges of their upcoming journey while ringing in the New Year. Reference the Digital Marketing section, to see how Twitter and Facebook will be utilized to promote this event. ii. Revive Festival $2,000,000 There will be a vitaminwater Revive Festival during the first week of June in Riverside, California. The festival’s purpose is to ‘revive’ the target audience after a long work and school year. It will also be an introduction into summer and will appeal to the target market who view summer as a time to vacation, road trip, and have a good time. The Revive Festival will be portrayed as the “hot spot” for millennials to attend. At the festival there will be music by Ariana Grande and Enrique Iglesias and it will be hosted by comedian Kevin Hart. There will also be a foam party, paint party, giant water slides, games and other activities. The Digital Marketing section includes information about how this event will be promoted via social media and the website. 14
  • 17. Label Contest and Packaging i. Strategies for Contest $500,000 The Label Contest will be kicked off with the concerts in January. Entries will be submitted through February and March and the top twenty finalists will be announced at the end of March. The finalists will be decided by vitaminwater judges. The month of April will include voting for the top design through the microsite. After voting, there will be the option to share your favorite design on Facebook and Twitter to help spread the word of the contest. The winner of the label contest will be revealed on stage at the Revive Festival. The winner will receive an all-expense paid trip to the festival and will get free VIP tickets and backstage passes to meet Ariana Grande and Enrique Iglesias. Scholarships of $5,000-$10,000 will also be awarded to the top five winners in the contest. A label contest campaign will be implemented to gain interest in vitaminwater with millennials and our secondary target market and to assist in creating a unique style. The participants will feel as though they have contributed to the launching of vitaminwater’s new campaign, in return creating loyalty to the product. Allowing anyone to vote on the best label creates a sense of contribution and involvement in the voters as well. The criteria for the contest will portray the image of vitaminwater. The main points will be to include vitaminwater’s connection with music, humor and the new slogan “Hydrate Your Journey”. The criteria will also include a template of the label which displays the areas that can be changed. This will serve to help control the placement of the logo, nutritional facts and contact information. The design with the most votes will ultimately design a slightly unique label for each flavor and zero option as to allow people to easily tell them apart. There will be strict criteria for the entries, criteria details and the label template can be seen in Appendix S. ii. Packaging Changes $5,000,000 As well as changing the label, the bottle will also be altered to become more eco-friendly. The eco- friendly bottle will appeal to the Social Sippers due to their current interest in “green” trends. After much discussion and research it was decided that changing the label, thickness of the plastic, and cap color would be the most effective option. Changing the label will give the bottle a new and cleaner look. It is not necessary to change the bottle design because of the high costs associated with it including hiring a designer, building new machinery and in-store racks. Only the thickness of the bottle will be altered. By creating a large amount of attention to the label through the contest, we should be able to achieve the same effect without these extreme costs. Changing labels is relatively inexpensive, and this approach does not require paying for a graphic designer to create a new label. Colored caps will also be implemented, as it was highly suggested during our focus groups and surveys. vitaminwater as a brand is colorful and the color of the drink itself is vibrant. To add individuality to the different flavors offered, the color of the caps will be changed to match the color of the flavor. The caps will still be transparent and will be tinted to reflect the flavor’s unique color. This is a low cost option to bring attention to vitaminwater’s new campaign and appeal to the consumer. Commercials $21,500,000 There will be a total of three 30 second commercials throughout the campaign. One will include Enrique Iglesias and is detailed in Appendix T. The second commercial will include Ariana Grande and the third will be generic to represent vitaminwater’s new campaign as a whole. The commercials will show that vitaminwater has recreated itself and that there are a lot of fun events and competitions happening in the upcoming year, without specifically mentioning any of them. This will allow the commercial to run all year long. The commercials will be designed to encourage the viewer to visit the microsite. Each commercial will incorporate the new slogan, “Hydrate Your Journey,” and show the journey that individuals embark on. The cost for the commercials is outlined in the Media section. 15
  • 18. Extra Incentive To encourage participation in all events and to have an underlying strategy across all promotions, discounts on the Revive Festival tickets will be rewarded to people who partake in each event. Also, the concert will be free to attend for those who earn at least 70 points in the Scavenger Hunt. There will be monetary discounts on the Revive Festival ticket price for participating in the Scavenger Hunt, attending a concert, following vitaminwater on all social media outlets, and voting for the label contest. Admission to the festival will be free for those who participated in each of the previously mentioned activities. VIP camping space will be awarded to those who submit a design for the new label contest. Digital Marketing Website and Microsite Website The current website for vitaminwater will continue to be used for this campaign but will be updated to reflect the target market of 18-to-24 year old Social Sippers and Gratified Guzzlers. Information on the beverage, current events and social media will be included in the website. The design currently is innovative and new, but the content under the #howihustle will be changed to reflect the new slogan. The website will also include live feeds from the social media platforms. An addition to the current website is the option on the homepage that leads a visitor off the website to the microsite promoting all the future events. This will give the visitor a way to quickly understand the events and promotions that are being implemented and how they can get involved. The microsite will be colorful with pictures of upcoming events and videos featuring Ariana Grande, Enrique Iglesias and Kevin Hart. Also included in the microsite will be our television advertisements and links to our social media platforms. Microsite $60,000 The microsite will integrate our campaign by informing viewers of the upcoming events and direct them on how to participate in the current activity. There will be a link to the goosechase app for Scavenger Hunt participants. In April, during the label contest, voting will take place on the microsite. We would like the microsite to have over one million views before the January concerts. i. The Scavenger Hunt participants will be directed from the microsite to the goosecahse app. This app is where they will initially post their photos to gain points. The winners of the Scavenger Hunt will be announced on the microsite as well as the social media outlets. ii. Concert promotion will begin as soon as the Scavenger Hunt is over and will be the main focus on the website and microsite. The tagline that will be promoted is Hydrate for the New Year. iii. Label Contest designs will be submitted to the microsite, where the top designs will be voted on beginning the month of April. iv. The Revive festival will be promoted heavily throughout April and May over the website and integrated with the other event advertisements on the microsite. v. Television commercials will be played on vitaminwater’s microsite and social media sites. The commercials will end with mentioning our new microsite and encourage the viewer to visit in order to get exclusive information on the new vitaminwater events and competitions coming up. vi. For the Brand Ambassador contest vitaminwater will be accepting applications through the microsite. Individuals can apply by submitting a short essay to the microsite. Internships $500,000 Maintaining the social media platforms is important to the new “Hydrate Your Journey” campaign. In order to keep these updated, college students will be hired to be interns to keep the social media content updated. Interns will be chosen from universities in our target cities, Riverside, Kansas City, San Antonio and Charlotte. 16
  • 19. Twitter and Facebook Twitter is the social media website to generate buzz around the product and listen to the consumers’ comments and respond to what the fans want out of the product. Twitter will receive a minimum of 500 retweets per post made. Facebook will be used to increase audience engagement and sharing to enforce loyalty. Fans can ‘like’ vitaminwater’s posts, invite their Facebook friends to like their page, and share the upcoming vitaminwater events. The goal for a Facebook post is to have a minimum of 200 shares. Twitter and Facebook platforms for vitaminwater are free of cost. i. Each of vitaminwater’s social media outlets will hype up the Scavenger Hunt by promoting it September 2015 through October, prior to the beginning of the seven day challenge. The prizes for participating and the grand prize will be emphasized through Twitter, Instagram, and Facebook posts. The Scavenger Hunt participants will have the option to share their posts through Twitter and Facebook to gain more points. The vitaminwater account will post the daily challenge on their social media outlets each day to encourage their audience to participate. To support the message “Hydrate Your Journey” vitaminwater will make posts with tips to help along your life journey. ii. Concert promotion will begin as soon as the Scavenger Hunt is over and will be the main focus on the website and microsite. The tagline that will be promoted is “Hydrate for the New Year”. Photos of one of the vitaminwater bottles and a New Year’s resolution that goes with the flavor name will be a theme of Facebook posts. For example, there is a bottle flavored focus. A photo of the bottle and a question asking fans, “What will you focus on this year?” iii. After voting for the Label Contest, there will be the option to share your favorite design on Facebook or Twitter to help spread the word of the contest. iv. The Revive Festival will be heavily promoted throughout April and May over social media and the website. Twitter will engage fans by posting photos of the possible events happening at the festival. For example, they may post a photo of a paint party and a foam party, and then ask the Twitter audience which event they would prefer to transpire at the festival. After the fans respond to the tweet, vitaminwater will answer that both events will be happening, pleasing all fans no matter how they voted. Facebook will post photos of the Revive Festival as it is happening. v. The television commercials will also be played on vitaminwater’s microsite and social media sites. All advertisements will be humorous in order to grab our target markets’ attention and to continue the comical theme vitaminwater was previously using. YouTube and Online Radio $25,000 Interstitial advertisements will be played on YouTube and Spotify using the same commercials that are used for television and adapted for online radio. They will be shown before music videos for Enrique Iglesias and Ariana Grande two weeks before each event. These interstitial advertisements will capture the listeners’ full attention because they are unable to continue listening until after the ad is finished. This is also an affordable way to reach consumers, costs can be found in the Media section. Email In an effort to spread the word about the concerts more effectively we will work with clubs, fraternities, sororities and organizations on University campuses to send an email out to their students. Our goal is to have 75% of the emails sent are opened and that there is an increased amount of participation from members of these organizations. The campus will send the email, so students are more likely to open it when they trust the source. Instagram Instagram is a social media platform vitaminwater will utilize to share eye-catching photos promoting their product. This platform strongly appeals to the Social Sippers because they utilize social media 17
  • 20. 18 often. The “Hydrate Your Journey” slogan will be shown throughout the Instagram posts. Instagram will be used to post photos of the ongoing events and contests while including Ariana Grande, Kevin Hart and Enrique Iglesias in content. The content will be humorous in order to grab the target market’s attention as well as continue their current strategy. vitaminwater currently is receiving around 200 likes on their posts, the goal is to raise that number to 600 likes per post. i. During the Scavenger Hunt, Concert, and Revive Festival vitaminwater will post the daily challenge on their Instagram feed to increase participation. Fans may tag vitaminwater in their photos from these events and they will appear under vitaminwater’s profile on Instagram. Snapchat $100,000 Snapchat is a popular platform for the individuals in our primary target market and vitaminwater will use sponsored stories as well as live stories. The sponsored story will have high engagement because it is added to the story feed of every person who has a Snapchat account. Having commercials on Snapchat is a relatively new feature, so users are not fed up with it yet and will be more accepting of watching a commercial on their story feed. The live story allows Snapchat users in the area to add their own ‘snaps’ to the vitaminwater live story. The objective is to have 90% of the 26 million Snapchat users in the United States view each of our 24 hour sponsored stories. i. During the Revive Festival there will be a live Snapchat story, which will allow for participating individuals to include their snap into vitaminwater’s sponsored Snapchat story. This way people who are at the festival can be a part of vitaminwater and those who are not at the festival still know what is happening. Measuring Effectiveness Before the campaign, we will conduct a pre-test on our ideas by using a survey to gauge the responsiveness of the campaign. Eight weeks into the campaign, the Scavenger Hunt, we will survey the consumers in our target market again to see how their perception of the brand has changed. The results will affect the campaign moving forward. We will survey consumers again in January and in May to gauge the effectiveness of the campaign and make adjustments as needed. We will survey consumers who participated in the vitaminwater events as well as consumers who have seen the advertisements and promotions but have not actively participated. We will measure the effectiveness of our traditional marketing based on how many people attend and participate in events and the exposure to promotions. We will keep track of how many people are attending events, such as the concerts and the festival, as well as how many people are participating in the other events, including the Scavenger Hunt and Label Contest. After events we will track the sales volume purchased, specifically in the target geographic areas. To measure the effectiveness of Ariana Grande and Enrique Iglesias we will survey consumers who will rate on a Likert Scale before and throughout the campaign to gauge how perceptions have changed. The return on celebrity investment will also be measured using revenue minus the cost of celebrity divided by cost of celebrity. We will measure how many people are being exposed to the promotions that vitaminwater is running using rating points and cost per thousand impressions. We will be measuring the effectiveness of all digital marketing outlets by calculating the amount of page views and the click through rate on the website, microsite, YouTube and Spotify. The social media sites in which vitaminwater have an account will be measured by the amount of shares, likes, and retweets each post receives. The focus for Facebook posts is the amount of shares and for Twitter it is retweets. This is because when users retweet and share it reaches the largest audience possible. Instagram has the option of comments and likes; however not every Instagram post requests a comment, thus likes are
  • 21. to measure the effectiveness. A Nielsen On-Line Brand Effect (OBE) Study will also be conducted. This study is used by large companies and measure the effect the online campaign has on purchase intentions. The test focuses on effectiveness and will be conducted in January 2017 and if the results are positive we will continue on as planned. If the results are negative the campaign will be re-evaluated. The estimated cost of this is $500,000. Sales Forecast The three year sales forecast is based on a .0125% increase during 2015 and a 7% increase during 2016 and a 5% increase from 2017 through 2018. There will be a 7% increase during the first year of the campaign because that is when it will be new. There is a lot of competition in the market and vitaminwater already has 62% of the market share. Also, the enhanced flavored water industry in general is currently in a decline. By implementing the marketing tactics vitaminwater will see a 7% increase the first year followed by a 5% sales increase each year after. As seen in Table 4, the total sales increase from $692,773,765 to $ 834,757,509 after implementing the marketing tactics. This will lead to a 17.01% net sales increase. Without the marketing tactics vitaminwater would see a slight drop in sales instead of the increase, as seen in Graph 1. We will measure the effectiveness of this campaign by comparing sales and brand awareness at the end of every year. If a 17% increase in sales is not achieved by the end of 2018, we will re-evaluate the campaign. Table 4: Sales Forecast Graph 1: Sales Forecast Graph 19
  • 22. References 5 Brilliant Microsites and Why They’re so Effective. (2014, March 19). Advertising Age. (2014, December). Retrieved from Advertising Age Journal. Alleger, Jason. “The Conversation Starter.” Penna Powers. N.p., 7 Aug. 2012. Web. 15 Nov. 2014. Belch, G. E., & Belch, M. A. (n.d.). Advertising and Promotions: An Integrated Marketing Communications Perspective. Colao, J. J. (2013). Pew Study Suggests that Snapchat has 26 Million U.S. Users. Forbes Report. Cripps, M. (2014, December 5). Building Microsites that Work. Retrieved from Media Connection. Farris, P. W., Bendle, N. T., Pfeifer, P. E., & Reibstein, D. J. (2010). Marketing Matrics: The Definitive Guide to Measuring Marketing Performance (Second Edition ed.). Pearson. Gamble, J. E. (2010). Competition in Energy Drinks, Sports Drinks, and Vitamin-Enhanced Beverages. (2013). Local Television Market Universe Estimates. The Nielsen Company. Hemley, D. (2013, September 10). Tips for Using Instagram for Business. Retrieved from Social Media Examiner. Marketing with Twitter, Twitter for Business. (2014, November 10). Retrieved from Twitter. Nelson, H. G., & Stolterman, E. (2003). The Design Way: Intentional Change in an Unpredictable World: Foundations and Fundamentals of Design Competence. Educational Technology. Nielsen. (2014, December 2). Retrieved from The Nielsen Company: http://www.nielsen.com/us/en.html Pew Research Internet Project. (2014, December). Retrieved from Pew Research Center. Poggi, Jeanine. “TV Ad Prices: Football Is Still King | Media - Advertising Age.” Advertising Age Media RSS. N.p., 20 Oct. 2013. Web. 15 Nov. 2014. Running a World-Class Scavenger Hunt has Never Been So Easy. (2014, November 15). Retrieved from goosechase. The 2013 Thumbnail Media Planner. Rochester, MI: 2020:Marketing Communications LLC, 2013. Print. Tompros, Kalle. “YouTube Advertising Options for Budgets of All Sizes.” Search Engine Watch. N.p., 25 Apr. 2012. Web. 15 Nov. 2014. “TVB - TV Cost & CPM Trends- Spot TV Primetime.” TVB - TV Cost & CPM Trends- Spot TV Primetime. N.p., n.d. Web. 16 Nov. 2014. Williams, J. D., & Goldsworthy, P. (2012). Breaking Down the Chain: A Guide to the Soft Drink Industry. ChangeLab Solutions. 20
  • 23. Appendix A SWOT MATRIX STRENGTHS -Diverse extensions and flavors -Resources under Coca-Cola ownership -Unique comedic packaging and music connection WEAKNESSES -Negatively viewed as a sugar-loaded drink -Brand confusion -Misleading health claims -Non eco-friendly packaging OPPORTUNITIES -Health conscious trend -Partner with health conscious brands -Increasing Digital Media -Eco-friendly Trend THREATS -Large amount of competition -New entrants may enter the market -Brand image/lawsuit 21
  • 24. Appendix B TOW MATRIX The TOW Matrix was created based on the SWOT Analysis and reveals four strategies for vitaminwater based on the SWOT Analysis. vitaminwater TOW Matrix O External Opportunities -Health conscious trend -Partner with health conscious brands -Increasing Digital Media -Eco-friendly Trend T External Threats -Large amount of competition -New entrants may enter the market -Brand image/lawsuit S Internal Strengths -Plentiful flavor options -Under Coca-Cola ownership -Generally healthier than soda -Unique packaging and advertising SO “Maxi-Maxi” Strategy Explain the benefits of vitaminwater and how they can correlate with increasingly health-conscious and eco- friendly consumers. Promote vitaminwater as a trusted brand by capitalizing on their unique advertising approach. ST “Maxi-Mini” Strategy Utilize the multiple flavor options to stand out against competitors and gain a larger consumer base. Create accurate content on packaging and advertisements to regain the trust of consumers. W Internal Weaknesses -Negatively viewed as a sugar- loaded drink -Brand confusion -Misleading health claims -Non eco-friendly packaging WO “Mini-Maxi” Strategy Partner with health and environmentally conscious companies to improve the image of vitaminwater. Utilize digital media to further to establish the identity of vitaminwater. WT “Mini-Mini” Strategy Eliminate any misleading content or health claims and move toward an honest and straightforward marketing strategy. Look toward eco-friendly packaging to challenge competitors. 22
  • 25. Appendix C Comparing vitaminwater to direct competitiors, SoBe Life Water and Propel Water Enhanced Water vitaminwater SoBe Life Water Propel Water Parent Company Coca Cola Company Pepsi Co. Pepsi Co. (Gatorade) Price 6 16.9oz: $4.99 8 12oz: $4.99 24 20oz: $23.99 12 20oz: $12.58 1 20oz: $1.02 6 16.9oz: $3.39 1 20oz: $1.09 Zero Calorie Option Yes, vitaminwater zero Yes Yes (all are zero calorie) Targeting 18-to-24 18-to-24 Over 25 Social Media Facebook: Twitter: Instagram: 4,100,000 likes 128,000 followers 11,895 followers 822,200 likes 9,400 followers N/A 511,000 likes 3,500 followers N/A Brand Recognition vitaminwater has a strong music connection and comedic approach SoBe has been utilizing their new twisted bottle design to set them apart Propel had a unique cap on the bottle but changed it, known for propel powder packs Competitive Strategy Due to declining sales vitaminwater competes on price and provides more product variety Viewed as an edgy and appealing drink because of their advertising Propel is positioning itself as a beverage for the gym, or while causally working out daily Growth Potential High because there is a lot of variety, still missing out on the opportunity to reach the18-to-24 market Medium because of limited variety within SoBe but an easily recognizable brand Low because of limited visibility and the widespread use of Gatorade and other sports drinks for working out Competitive Advantage Perceived as the leader in the flavored water category with a market share of 62% Viewed as an edgy and appealing drink because of their advertising Is part of Gatorade, promoted as the water to drink while working out 23
  • 26. Appendix D Number of Respondents in Each Age Segment Appendix E Ethnicity of Survey Respondents Appendix F Gender of Survey Respondents 24
  • 27. Appendix G Types of Beverages Consumed Appendix H Distribution Preference to Purchase Non-Alcoholic Beverages Appendix I Classification of vitaminwater by Respondents 25
  • 28. Appendix J Descriptive Analysis of Means from Survey 2. Appendix K We conducted a linear regression analysis using the stepwise procedure. We wanted to test which of our independent variables helped predict purchase intention. All variables were included in the analysis, and were allowed to enter and fall out of the regression model based on their significance level. The regression analysis shows that a feel good attitude, sweet craving and being physically active are strong predictors of purchase intention of vitaminwater. 26 0.686 0.195 0.176 0.0 0.2 0.4 0.6 0.8 1.0 Feel Good Attitude Sweet Craving Physically Active Purchase Intention
  • 29. Appendix L These are the questions included on Survey 2 without demographical information. Respondents rated each question based on a Likert Scale. 1) I would purchase vitaminwater 2) I feel good about drinking vitaminwater 3) I consider vitaminwater as healthy 4) When I drink vitaminwater I am getting my daily vitamins 5) I drink vitaminwater in place of water 6) I consider vitaminwater to be a sports drink 7) I drink vitaminwater while being physically active 8) I consider vitaminwaterto have artificial flavors and/or taurine 9) I like the flavors vitaminwater offers 10) I drink vitaminwater when I want something sweet 11) I look up nutrition facts on all my food and drink 12) I would feel guilty if I didn’t recycle 13) I live a healthy lifestyle 14) The word “hustle” has a positive connotation 15) Social media influences my decisions on what I consume 16) I like to listen to pop music 17) I like to listen to country music 18) I like to listen to rap music 27
  • 30. Appendix M Photos depicting the brainstorming process to define our target market. 28
  • 31. Appendix N The timeline for the marketing campaign. Events Contests Promotions 2015 September Scavenger Hunt October Scavenger Hunt Scavenger Hunt November Concert December Concert 2016 January Concert Label February Label Contest Label Contest March Label Contest Label Contest April Label Contest Label/Festival May Festival June Festival Brand Ambassador Festival July Brand Ambassador August Brand Ambassador September Scavenger Hunt October Scavenger Hunt Scavenger Hunt November Concert December Concert 29
  • 34. Appendix Q The celebrities endorsers for vitaminwater are Ariana Grande, Enrique Iglesias and Kevin Hart. 32
  • 35. Appendix R Scavenger Hunt Challenges Day Daily Challenge Extra Points Explanation #MeetonMonday Take a video with people you meet that can say “Hydrate Your Journey” in another language. The video requires a minimum of 2 different languages, each from a different person 5 per language Incorporates the vast diversity in America. #TravelTuesday Share a photo of the more ecofriendly route you took today. Instead of driving try to walk, ride the bus, carpool, or bike to your destination. 5 for having a friend or two join you Appeals to social sippers and ecofriendly trend. #WorkforitWednesday What are you working towards and what motivates you to stay focused on your goal? Create a video raping or singing to a song that motivates you to keep working hard throughout your journey. 10 if a musical instrument is played. Promotes vitaminwater’s image/slogan. #ThoughtfulThursday Choose a random act of kindness. Take a picture or video of a thoughtful act towards someone or giving back to the community. For example participate in a walk/run for charity, volunteering, or simply lending a helping hand. 10 for each additional captured good deed. Exemplifies vitaminwater’s new focus on service for the world and environment. #FinallyFriday Manage your time. Make time for fun. Take a break from the work attire and dress up. Give us your best Hawaiian-themed outfit. 5 for giving your vitaminwater a tropical look. Encourages time for a break during the journey. #SpookySaturday Happy Halloween! This is your day to be whoever you want to be. Dress up and have a blast! 10 for dressing up your vitaminwater bottle. High participation expected because of Halloween. #SuccessfulSunday Set goals to achieve dreams in your journey. What is your biggest accomplishment? Write it down and share it. Up to 20 if you draw it, paint it, sculpt it, use food or another medium. Relates to vitaminwater’s new slogan, “Hydrate Your Journey.” 33
  • 36. Appendix S The label template that participants of the label contest would be required to use. 34
  • 37. Appendix T Commercial Script- 30 Seconds Commercial 1 will star the new celebrity endorser, Enrique Iglesias, while embodying vitaminwater’s new slogan, “Hydrate Your Journey”, and portraying a meaningful yet tastefully humorous vibe. Scene One: shows the silhouette of a toddler and a father in front of the bright lights of the paparazzi and screaming fans. Time elapses showing the toddle silhouette grow into his teens. The paparazzi and fans close in on the father. Enrique sneaks away from the crowd, and with a determined smile on his face, heads off. Scene Two: Enrique signs the contract, and the shot quickly changes and climaxes to a handshake with the agent, than to his record being distributed to millions, and finally to the silhouette of a star in front of paparazzi and screaming fans. Enrique’s mother and father are watching the scene on their television. The camera shot circles around the star and reveals Enrique’s face. Flashing Scenes: The scene flashes through shots of him playing in Miami restaurants, auditioning and being rejected. Enrique Voiceover: “My journey was an uphill battle and I couldn’t have made it this far, if I didn’t take time to enjoy the climb.” Scene Three: Suddenly it all stops and there is silence as Enrique stares blankly at all the world around him. The noise and chaos comes back and several of his friends are before him and say, “Come on man, let’s go!” Enrique Voiceover: Flashing Scenes: “Give time for yourself.” Enrique playing a recreational sport with his friends “Relax.” Enrique relaxing on his boat with his girlfriend “Prepare.” Enrique is back stage at a concert laughing “Rejuvenate.” Enrique drinks vitaminwater while standing on the side of a large stage with thousands of screaming fans. “Hydrate Your Journey” Enrique looks into the camera and smiles. Scene Four: Another performer is heard saying “thank you!” to the fans. As Enrique walks on stage Ariana Grande walks off. He slips the bottle into her hand and heads out into the lights, the crowd erupts as he walks on stage. Ariana looks up from the bottle, smiles at the camera, and winks. 35