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createyourfate by vitaminwater
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Table of Contents
Executive Summary.........................................................................................................................1
Situational Analysis.........................................................................................................................2
S.W.O.T. Analysis..............................................................................................................2
Situation Summary............................................................................................................3
Strategic Marketing Recommendations..........................................................................4
Goals and Objectives ......................................................................................................................4
Target Consumers...........................................................................................................................5
Positioning.......................................................................................................................................6
Marketing Mix...................................................................................................................................6
Product...............................................................................................................................7
Packaging and Labeling ...................................................................................................8
Price....................................................................................................................................8
Channel Strategy...............................................................................................................9
Integrated Marketing Communication Plan...................................................................10
Alternative Marketing......................................................................................................11
Digital Communication ...................................................................................................12
Traditional Marketing......................................................................................................14
Below the Line Promotions ............................................................................................15
Control Measurements and Contingencies Plan ........................................................................16
Evaluations & Controls...................................................................................................16
Contingencies..................................................................................................................16
Conclusion.....................................................................................................................................16
End Notes.......................................................................................................................................17
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APPENDIX: Table of Contents
APPENDIX A: Primary Research.................................................................................................A1
A1: Online Survey ...................................................................................................A1
A1.1: Charts and Graphs ........................................................................................A1
A2: Blind Taste Survey......................................................................................................A3
A2.1: Survey Questions..........................................................................................A4
A3: Label Survey................................................................................................................A5
APPENDIX B: Marketing Graphics..............................................................................................A6
B1: createyourfate Website.....................................................................................A6
B2: createyourfate Facebook..................................................................................A6
B3: createyourfate Instagram..................................................................................A7
B4: createyourfate Twitter.......................................................................................A7
B5: Hulu Ad..............................................................................................................A8
B6: YouTube Ad ......................................................................................................A8
B7: Pandora Ad .......................................................................................................A9
B8: Spotify Ad..........................................................................................................A9
APPENDIX C: creativespace Floor Plan....................................................................................A10
APPENDIX D: GANTT Chart.......................................................................................................A11
APPENDIX E: Sales Forecast.....................................................................................................A13
APPENDIX: End Notes ...............................................................................................................A14
Bibliography................................................................................................................................A15
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Executive Summary
vitaminwater used to be a strong, successful, and memorable brand among young beverage
consumers. Once the pioneer of the enhanced water beverage category, it now competes in an oversaturated
and mature category. We will reboot vitaminwater by modernizing the label, refining and repositioning the
product, and directly addressing Millennial‟s needs and desires in a compelling beverage brand. Our unique
marketing plan, combined with our innovative tactics, will place vitaminwater in the hearts, minds, and
stomachs of 18-24 year-old consumers.
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Situational Analysis – S.W.O.T.
To understand what is happening with vitaminwater, this section briefly outlines our S.W.O.T. analysis.
Strengths
 Highest market share within its category.
 Strong initial launch.
 Promotions with the FADER and #uncapped
concerts.
 Financial and distribution resources provided by
the Coca Cola Company.
 Sister brand smartwater, is growing steadily.
 Strong loyalty with 35-44 & 55-64 year olds.
Weaknesses
 Damaged reputation due to health claim lawsuits.
 Ambiguous brand positioning.
 Declining sales.
 Underutilized social media.
 Heavy focus on non-responsive hip hop
audience.
Opportunities
 Rise in popularity of ethnic/cultural flavors.
 Rise in popularity of seasonal products.
 Unique characteristics of Millennial aged 18-24.
 Consumer interest in health and wellness.
 Growth of C-stores among Millennials [1]
Threats
 Risk of future legal actions.
 Increasing competition.
 Substitute beverage categories threaten to take
volume from the enhanced water category.
 MiO water drops also threaten to take volume
form enhanced water category.
Strengths
vitaminwater‟s strongest attribute is the control they hold over the market share in the enhanced water
beverage category, currently leading with 62%.[2] This is attributed to vitaminwater pioneering the enhanced
water beverage category, along with the company‟s use of innovative marketing programs and creative
partnerships with celebrities. [3] vitaminwater‟s rapid success, attributed to their use of 50 Cent‟s creative
partnership with the company at the height of his career, led to The Coca-Cola Company‟s acquisition of
Glaceau. Coca-Cola currently provides vitaminwater with the financial resources and distribution networks
provided to products within their portfolio, a significant advantage that vitaminwater‟s competitors do not
possess. Currently, vitaminwater is partnered with YouTube and The FADER, and the product is endorsed by
the artists who perform at their #uncapped concerts.[4] Current insights from the 2011-2013 Eq Volume Index
chart indicate that vitaminwater‟s strongest segment for its trademark base product and zero products are
those aged 35-44 and 55-64.[4] Another possible strength is in the steady growth of their sister-brand,
smartwater; according to BevNet, smartwater sold more than Arrowhead and Evian in 2011.[5]
Weaknesses
In order for vitaminwater to grow, its current weaknesses must be addressed. vitaminwater‟s
reputation has been damaged through a series of lawsuits regarding health claims and deceptive labeling, and
as a consequence the company must forego claims regarding “the drinks and their effects on the body,” and
state the amount of calories per bottle on their front label as well as “see nutrition facts for more details,” stated
in bold.[6] Consumer backlash due to a formula change in the base sweetener has also contributed to damaging
vitaminwater‟s reputation, and although the formula has since been reinstated, consumers have nonetheless
expressed strong negative feedback on the brand‟s Facebook page.[7] These dramatic upheavals resulted in
declining sales; according to the data provided in the case, profits for vitaminwater base have totaled “$868
million in 2009, $769 million in 2010, $681 million in 2011, $623 million in 2012, and $516 million in 2013.”[8]
Another of vitaminwater‟s weaknesses is the brand‟s hyper-focused targeting of hip hop market, along with
their failure to instate a clear positioning strategy. vitaminwater‟s current marketing campaign,
#HydrateTheHustle, promotes an unclear image that ambiguously defines the brand as a “hydrating beverage.”
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This lack of clarity is reflected on their social media sites, where their generic photo and video content from their
Facebook, Instagram, and Twitter pages lack engagement with their audience. Additionally, vitaminwater‟s
heavy focus on a non-responsive hip hop market contributed to a campaign that was not broad enough to reach
the 18-24 year old consumers. If vitaminwater were to examine the tactics used by companies with consistently
high social media engagement and participation rates, they may be able to apply certain learned mechanisms in
order to reach their full potential, in terms of online presence.
Opportunities
The beverage industry is experiencing a shift in flavors that reflects consumers‟ interest in health and
wellness.[9] Additionally, the rise in seasonal and cultural influenced flavors in other popular beverage
categories, can be attributed to consumers seeking innovation, flavor, and variety.[10] These opportunities enable
vitaminwater to expand its product line and tailor to the needs and wants of younger consumers. Because
Millennials strive to differentiate themselves from prior generations, there are many unique characteristics of 18-
24 year olds that industry leaders can pursue and take advantage of. More details regarding Millennial‟s
spending power, brand relationship, diversity, response to social media, goals and aspirations are provided in
the Target section. Also there is a trend among young adults for convenient purchases, and because of this they
spend more time and money in convenience stores than older adults.[11] Understanding the Millennial
perspective regarding brand image creates an opportunity for vitaminwater to build long-time repeat buyers
within this influential generation.
Threats
Several threats face vitaminwater, such as future legal actions against vitaminwater due to health
claims.[12] Substitute beverage categories such as sports drinks and regular water threaten to steal market
volume from the enhanced water beverage category, and they specifically target vitaminwater for share of
stomach. Another threat vitaminwater faces lies within its own category, as new companies are continuously
breaking into the enhanced water beverage industry and stealing market share. Competing products such as
Hint, Aquafina, SoBe Lifewater, Sparkling Ice, Talking Rain, VitaRain, MiO and Activate threaten vitaminwater
with increased competition, potential loss of shelf space, and potential loss of market share. Once these threats
are minimized, vitaminwater will be able to recover its market power and succeed as a brand.
Situation Summary
The Coca-Cola Company has an opportunity to revive its struggling brand, vitaminwater. An innovative
product with an innovative marketing strategy, vitaminwater once captured the youth market of the year 2000
but currently fails to position itself effectively in the minds of 18-24 year old Americans in today‟s market.
vitaminwater has great potential for growth within convenience stores where Millennials are 53% more likely to
frequent than consumers older than 35. Millennials are more interested in forging their own paths rather than
following the path set out for them by their parents. Like the target market, vitaminwater must capture its
destiny and create for itself a brand that is relevant to Millennials. vitaminwater should not only be a product
that fortifies your body, but a brand that fortifies your creative and entrepreneurial passion by providing tools,
resources, and networking that is needed in the modern world to “createyourfate”.
Despite the challenges vitaminwater faces, the company has immense potential for growth.
vitaminwater will implement strategies that deflect attention from previous shortcomings, and focus on what
vitaminwater can do for the consumer, both physically and emotionally. Our research suggests that
vitaminwater‟s relationship with Coca-Cola is an underutilized advantage that we will discuss in our IMC plan
can play a significant role in the brand‟s future. vitaminwater‟s ambiguous position in the market and specific
targeting of an unresponsive audience must also be addressed. Redefining not only the brand, but also the
target audience, will allow vitaminwater to stand out among their sea of competitors and address the unique
opportunities Millennials provide, thereby creating a fresh fate for vitaminwater.
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Strategic Marketing Recommendations
Millennials are a generation of dreamers, doers, feelers, and achievers. They aspire to live a life where
fulfillment is key, and there is no freedom without freedom of expression. vitaminwater will represent what every
millennial stands for freedom, creation, and individuality. This brand will inspire these up-and-coming innovators,
go-getters, and creatives to pursue their passions, highlighting each individual's potential to create their own
fates. vitaminwater will establish the createyourfate campaign, which works to empower Millennials to use their
own creative talents to make an impact on the world. vitaminwater will speak to 18-24 year-olds directly as a
premium super-water that helps your dreams step out of the box, into the social realm, and into reality.
Goals and Objectives
A S.M.A.R.T. goal is a mnemonic acronym for a better way to establish goals and objectives. It stands
for specific (precisely what you are going to achieve), measurable (quantifiable objectives), actionable (what
actions will be taken to meet this goal), realistic, and timed.
vitaminwater‟s differentiation
First in its category
Provides resources
Focuses on self-expression
Fortifies the body, mind, and soul
Supports the Arts
Supports the entrepreneurs
Strives to support 18-24 year olds
Introduces seasonal and ethnic flavors
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Target Consumer - Psychographic Insights
The Millennial generation consists of people who were born between 1980 and early 2000s, but
specifically for this case, the focus is strictly on the 18-24 year old segment. This younger generation consists of
people who are more caring, community oriented, and politically engaged than the generations before them.
“This generation masters self-expression, with 75% creating a profile on social networking sites, 20% posting a
video of themselves online, 38% with one to six tattoos, and 23% with a piercing in some place other than an
earlobe.” [13]
Target Market: Segmentation
18-24 Years Old Millennials
Independent Individualistic Ownership and Control
 Learn for themselves
 Enjoy how-to tutorials and
life hacks.
 Take risks
 Innovating efficiency
 Believes they are one of a
kind
 Enjoys customizable
products and services
 Instills their own personality
into what they buy
 They are in control of their
own lives
 Desires to experience new
activities
 Cares about the society
One major trend among Millennials is the concept of personal branding, a way to identify their passions
and determine the most expedient path forward.[14] Most young adults agree that their goals have shifted from
job stability to life fulfillment, and that their definitions of “success” have changed.[13] They believe that no one
else determines their lives but themselves, and that they must
create their own fates.
To further exemplify a typical Millennial, we have
created the following two profiles to consider. Twenty-one
year-old Mel is a full-time architecture major at an out-of-state
university. Her junior year of college, she studied abroad for a
full year in Italy and came back inspired by the beautiful
Renaissance architecture. She aspires to be a free-lance
architect for the first few years out of college and do her work
nomadically as she travels the world with community service organizations such as GIVE Volunteer Abroad.
Statistics point out that “61% of Millennials are worried about the state of the world and feel personally
responsible to make a difference and leave it better than they came into it.”[15]She spends her spare time on
various social media platforms such as Instagram, Snapchat, and Facebook to keep herself updated with her
friends, family, and current events. Mel‟s hobbies and interests include crafting and filming DIY YouTube videos,
surfing, hiking, watching her favorite shows on Netflix, volunteering at her local animal shelter, and lustily
scouring the web for cheap airfare.
Twenty-three year-old Justin recently graduated college with a Bachelor‟s degree in Business
Administration. He currently works at Kohl‟s as the assistant manager while trying to establish himself as an up-
and-coming DJ by playing at friends‟ parties and local club events on the weekends. Justin enjoys producing
tracks on his Apple laptop, photography, spending time with his family and friends, and volunteering as a music
teacher at his local Boys & Girls Club. Eventually, he aims to create and run his own record label, but for now he
is content living in the present and enjoying his life.
Mel and Justin, like most Millennials, would rather spend time traveling, experiencing the world, and
doing well in any way they can than living their parents‟ American Dream; a stable career, a family, and a white
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picket fence. Statistic shows that 84% of Millennials say that helping to make a positive difference in the world is
more important than professional recognition [15].
Instead, they would rather spend their money on seeing the world and cultivating their own
experiences. A report by Boston Consulting Group investigated travel among Millennials and concluded that
“travel has risen 10% and Millennials are the fastest growing age segment in travel spending.”[16] Millennials are
a unique generation who are concerned about their individuality, strive to make the world a better place, are
active, are adventure-driven, and regard themselves as experiencers. They believe that they have the power
within themselves to be who they want to be; they have passion, drive, and even focus when it comes to
something they love.
Positioning
vitaminwater is an enhanced flavored water that will support the body throughout the day and support
the soul throughout the life of Millennials by way of the creativefoundation - both figuratively and literally
hydrating and nourishing them with the necessary vitamins needed to fuel creativity. Millennials are passionate
about creativity and the arts, and the desire to create their own fate, pursue their passions, and nourish their
minds and bodies will be inspired by vitaminwater‟s creativefoundation. Through the creativefoundation by
vitaminwater, the brand will provide Millennials with the tools, resources, and networking necessary for them to
achieve success.
As mentioned in the Strengths portion of the S.W.O.T., vitaminwater‟s past success with young adults
was dependent on creative partnerships and its presence in the hip hop world. Presently, vitaminwater is
attempting to reinvent their image through partnerships with The FADER and concerts featuring Ty Dolla $ign
and Kendrick Lamar. Not only does vitaminwater fail to address negative health perceptions regarding their
product, but they need to strengthen their efforts to position the brand as “cool and trendy” among health
conscious and brand sensitive young adults.
vitaminwater‟s most recent promotional campaign, “Hydrate the Hustle,” with the #uncapped series
and the partnership with The FADER was targeted to connect with Millennials and emphasize that the “path to
success is the story of their hustle and hard work: the struggle, the commitment, the perseverance.” [17] Despite
vitaminwater‟s promotional efforts, the brand has yet to capture Millennials‟ attention because young adults do
not have a clear understanding of the meaning behind vitaminwater. To make matters worse, the word “hustle”
has a different definition and negative connotation among 18-24 year-olds than is intended by vitaminwater‟s
campaign.
vitaminwater pioneered the enhanced water category and created their own fate by becoming a
successful company. This brand, unlike its competitors, can credibly promote the idea that individuals can
express themselves in their own unique ways, and is able to challenge them to create their own fates. To
capture the 18-24 year-old audience, vitaminwater will be introduced as an enhanced flavored water that will
inspire Millennials who are passionate about creativity, arts, entrepreneurialism, and individualism to forge their
own paths through life and achieve success by following their dreams. vitaminwater will use its resources to
provide the Millennials who are experiencers and achievers with the tools and resources they need in order to
accomplish their goals. vitaminwater will further differentiate itself from its competitors.
Marketing Mix
The vitaminwater marketing mix will support the new brand positioning in a variety of creative,
impactful, consistent ways that range from product innovations and retailer-based promotions to a
groundbreaking PR program focused on inspiring and enabling Millennials to make their dreams a reality. Label
redesign, pricing strategies, and channel distribution strategies will be further explained in their respective
sections.
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Product
According to Arch Point Consulting, Millennials are known to fuse work with play and enjoy things that
are aesthetically pleasing to all the senses.[18] A new product strategy must be implemented to strike a happy
medium with young adults, proving to Millennials that vitaminwater is not only a brand seen as quirky and
trendy, but also a brand that can be taken seriously.
First, vitaminwater must update the packaging and label designs to be more visually appealing to
young adults. Their basic label and bottle design has left consumers with the idea that vitaminwater lacks
creativity, innovation, and personality. More details will be provided in the package and label section.
Second, vitaminwater will eliminate some of its less popular flavors that bring in the lowest sales and
introduce new limited-time seasonal flavors. This can give the company an opportunity to focus on up-and-
coming flavor trends. Overwhelmed by the heavily saturated market of repeated flavors from competitors,
introducing ethnic and seasonal flavors to bring about a dynamic flavor appeal is an appropriate way to grab a
young audience‟s attention. From all of the vitaminwater beverages, only five of the highest selling base and
zero flavors should be kept: XXX, Power-C, Energy, Revive, and Essential. The zero flavors that should be kept
are Squeezed, XXX, Rise, Go Go, and Glow. The rest of the flavors produced by vitaminwater do not make
enough sales and should be discontinued from the product line.
Seasonal Flavors
According to our online survey results (located in the appendix), having a variety of flavors is relatively
important to young adults. To compensate for the elimination of select flavors, vitaminwater will add variety to
their product line by introducing new seasonal flavors to attract 18-24 year-old consumers. Seasonal flavors
should be released twice a year, in September and March, for vitaminwater base products. vitaminwater
flavors released in September should be geared towards winter/holiday type flavors such as Peppermint, Spiced
Apple Cider, and Horchata. Horchata is a creamy flavored drink that is made of milk, vanilla extract, ground rice,
almonds, and cinnamon sticks. By examining best practices from other categories, a regular stream of new
seasonal flavors is effective at gaining and maintaining interest among Millennials. Popular millennial brands in
the energy drink, craft beer and even ice cream categories regularly introduce new flavors and periodically
introduce -time-only seasonal flavors to stay on the radar of young adults who seek variety and novelty. As one
example, our team found that Rockstar‟s Horchata flavor has had positive consumer response. Rockstar
Horchata proves that this flavor can be introduced even in off-shoot categories such as energy drinks.
vitaminwater flavors released in March should be geared towards spring/summer flavors such as Lilikoi,
Passion Fruit-Orange-Guava (“P.O.G”), Hibiscus, and even alcohol related beverages such as Sangria and
Mojito. Instead of seasonal flavors, our strategy for vitaminwater zero will incorporate more lemonade and fruit
combination flavors. Unlike base products, a new limited-time flavor should be released only once a year. Some
recommendations for lemonade flavor mixes would be, Strawberry, Mint, Huckleberry, Blueberry, Hibiscus, and
Mango-Peach lemonades.
Although our team realizes we are not allowed to make any sweetener changes, we would like to
suggest a change from the current blend of stevia to monk fruit sweetener in its zero products. vitaminwater
should demonstrate to its consumers that the brand cares about them and considers product improvement and
innovation.
The overall taste of the vitaminwater zero product line also needs to be reassessed, as it received a
low rating when compared to competitors in our blind taste test. After doing substantial research regarding
vitaminwater‟s taste, we believe a change to the sweetener is necessary to attract more consumers.
Consumers who drink zero calorie vitaminwater are still left unsatisfied due to the stevia-sweetened zero
beverage.[19] According to Medical Daily, Coca Cola's use of stevia in their drinks has left their beverages to be
described as bitter rather than sweet.[20] The use of monk fruit, which is stated as being 300 times sweeter than
sugar, would provide the sweet taste consumers desire but without the bitterness.[21] Using monk fruit in the
vitaminwater zero formula in conjunction with or as a replacement for the current stevia sweetener would
reduce the bitter flavor found in their beverages while still retaining the zero calorie and naturally sweetened
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aspects that consumers find most appealing. This all-natural zero calorie sweetener will improve the beverage
flavor and increase consumer confidence and satisfaction.
Packaging and Labeling
Since its initial launch, vitaminwater‟s
design has consistently stayed basic and
needs a fresh look to capture the attention of
the Millennial market. The more unique and
aesthetically pleasing a label is the more likely
the bottle is to be bought, as it is generally
perceived that the outward appearance
reflects the quality of the wine.[22] We believe
this concept can be applied to all beverages,
including vitaminwater; to transform it into a
contemporary and relevant brand while better
highlighting the natural sweeteners and
maintaining the existing brand equity, the
packaging must be changed. To keep
vitaminwater‟s look appealing, our design
includes a complete switch to a 16.9 oz. bottle,
a black cap, and an all-black label highlighting
the trademark tone of the specific bottle by
coloring the flavor, name, and vitaminwater
title on the package (see appendix for details).
The label will continue to have creative, quirky,
and funny quotes, however, the quotes will be
limited to around 140 characters so customers
can retweet and engage with the brand.[23]
After surveying 286 students, 49% voted that
this label design was the most appealing and
would most likely capture their attention (see
appendix for current results). Our updated
packaging will reflect its unique quality,
inspiring Millennials to make the first purchase
and motivating them to make future
purchases.
To prevent consumer confusion,
„vitaminwater‟ will stay vertical on the label, all
other descriptions (including the flavor and name of the drink) will remain horizontal, and it will feature the witty
phrases that vitaminwater is known for. Along with these changes, the „nutrition facts‟ and vitamin table will be
featured on the back of the label, providing Millennials more information on what they are consuming.
Price
Price is still a big concern for Millennials due to their low level of income. Thus, it would be best to
adjust the prices in convenient stores to complement our target consumer‟s wallet, with promotional pricing to
encourage increased trial among the young adults who frequent convenient stores. Considering the research
provided in the case, convenience stores contributed the most to vitaminwater‟s total dollar sales with 44%.[24]
Beverages sold in convenience stores should continuously be offered at sale prices, such as 2 for $2. Adjusting
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the pricing in the C-store category will increase frequency of purchases by Millennials based on the reasoning
provided in the Situation Summary, as well as increase vitaminwater‟s total dollar sales as a whole.[25]
Channel Distribution Strategy
The target audience consists of young individualistic adults aged 18-24, and our strategies must reflect
the audience we aim to capture. vitaminwater will continue to generate and support retail distribution in all of its
current channels. However, vitaminwater will significantly increase its focus on expanded distribution, maximize
shelf space and improve promotion in the convenience store channel to better reach millennial consumers
where they most often shop, while maintaining current space in grocery stores. Furthermore, an expansion into
non-traditional beverage retailers such as expositions and boutiques will improve visibility and brand image
among this target. At convenience stores, exclusive vitaminwater-flavored Slurpees will be introduced, and
beverages will be offered at promotional sale prices. vitaminwater fridges should also be placed in unique
specialty stores and expos to increase brand awareness. In casual restaurants and movie theaters,
vitaminwater should be offered as a fountain drink for consumers to purchase. The goal of these strategies is to
promote brand image, trial, and awareness.
Focus on Convenience Stores
“Almost three-quarters of Millennials shop at a convenience store at least once a week, compared to 68
percent of total respondents. More Millennials also indicated they shop at c-stores almost every day -- 15
percent vs. 11 percent for total respondents,” according to Convenience Store News.[24]
Focus on Specialty Stores and Expos
To target young creatives, vitaminwater must be placed in locations that are unique and quirky.
Customized vitaminwater fridges should be placed in locations such as art galleries, fashion boutiques, skate
shops, music/record stores, comic book stores, gaming stores, and gaming/anime expos. Young adults who are
present at these trendy locations tend to be tech savvy and are known to share information about products
through word-of-mouth. The fridges should be covered with artistic and creative designs from the
creativespaces to capture the attention of 18-24 year olds and give them an incentive to purchase
vitaminwater. If they enjoy the product they will, in turn, share their experience with friends and acquaintances
through social media platforms.
Focus on Casual Restaurants
Placing vitaminwater as a fountain drink in dining establishments frequented by Millennials will help
increase brand awareness and reflect the image of a trendy and high-quality product. vitaminwater must focus
efforts into placing their fountain drinks in food establishments at which young adults enjoy dining, since about
49% of Millennials eat out at least once a week.[26] According to forbes.com, there has been a "reported 20%
decrease in visits to fast food chains and 42% reported increased visits to fast-casual restaurants in the past
year. Virtually all this group (89%) reported looking for [is] fast, casual food that they deemed tastier and
healthier.”[27]
vitaminwater needs to focus less on placing their fountain drinks in fast food locations such as
McDonalds, and focus more on placing of their beverages in casual restaurants that offer quality food at less
expensive pricing such as, Chipotle, Panera Bread, Five Guys Burgers, Olive Garden, and Subway.
Expanding Focus on Movie Theaters
According to barna.org, “Millennials are significantly more likely to go to the movies in general than any
other age group. While the average American reported seeing about 3.3 movies in the theater in 2013,
Millennials said they saw 4.3.”[24] vitaminwater will focus on expanding the placement of their most popular base
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flavor (XXX) and zero flavor (zero Squeezed) in established Coca-Cola movie theaters as a fountain drink
option that consumers can purchase.[28]
Focus on Grocery Store
Larger shelf space in grocery stores, compared to convenience stores and drugstores, is an opportunity
that must be taken advantage of. The launch of new vitaminwater seasonal flavors should take up some shelf
space at each grocery store. The remaining space will be reserved for vitaminwater‟s highest selling flavors
that were before mentioned in the third paragraph of the Product section.
The main reason is to maintain and grow the brand among the older core consumers, an added benefit
is potentially attracting younger consumers in this channel as well. vitaminwater‟s revamped image should be
seen as innovative, fresh, trendy, creative, and “new and improved”. This can be achieved at grocery stores by
emphasizing exclusive seasonal flavors that have new bottle designs that promote young artists.
Channel Distribution Strategy Conclusion
vitaminwater will manage to capture the attention of the young, individualistic, and creative adults
through its strong presence in convenience stores, specialty stores, expos, casual restaurants, movie theaters,
and grocery stores. Through our distribution, vitaminwater will develop brand awareness and encourage young
adults to purchase vitaminwater, often as their first time trying the product. vitaminwater's promotional efforts
will generate brand awareness, increase brand trial, and create a new brand image for 18-24 year olds. This
refocus will set the stage for our Integrated Marketing Promotions plan.
Integrated Marketing Communications
The entire IMC plan will be focused on communicating that vitaminwater inspires and enables
Millennials to create their own fates in this world. Each aspect of the IMC plan will communicate a consistent
message and a compelling image for the vitaminwater brand. This unique message will resonate with
Millennials while showing current core consumers that their brand is youthful, up to date, and doing good for the
world. The createyourfate foundation is the main driving force behind the createyourfate campaign. Through
this foundation, vitaminwater will establish regional creativespaces dedicated to creating a safe workshop
where individuals looking to excel in the arts and entrepreneurship can use free resources provided to guide
them one step closer to creating their fate. Our idea of creating this foundation sparked after observing that the
targeted demographic has a large passion for the arts and entrepreneurship, yet they desperately lack
opportunities to exhibit. vitaminwater is not only an enhanced water that fuels the body, but it also fuels
creativity and expression within individuals. By way of our foundation, digital media, and alternative marketing,
vitaminwater will provide the tools and resources necessary for any young and eager dreamer to freely create
his or her fate (Refer to Appendix B).
vitaminwater holds credibility as an innovative, creative category-creator that no other brand can claim.
The original enhanced water that purely focused on catering to the physical needs of consumers in the past will
take it one step further by adjusting their focus to fueling the mental and spiritual needs of consumers with the
creativespaces. We want to be able to directly connect with inspired young adults who are looking for ways to
exploit their talents, while subsequently developing options to give them a boost to reach their potential.
Research shows that Millennials are willing to adopt brands that are actively working to create a friendship with
their consumers.[29] As previously stated, the createyourfate foundation will provide Millennials resources no
other company is providing. vitaminwater‟s creativespaces will provide young adults with the physical
equipment to create with, vital contacts to connect with, and support to ensure that they will undeniably be able
to create their fates. Refer to the GANTT Chart in Appendix D for timeline, budget, and marketing projects.
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vitaminwater‟s creativespaces are going to be the one-stop-shop that conveniently supplies resources
for our creative consumers. Recording studios for musicians, computers with state-of-the-art programs for digital
art, conference spaces for professional meetings, green screen areas for videos, apparel design and production
equipment for fashion designers, and drawing tables with various mediums will be available to consumers to
spark young Millennials to get their creative juices flowing. The vitaminwater creativespaces will not only be a
place for people to express their artistic talents, but also share their works on the Internet and to the public,
including a sharing site that allows individuals to showcase their works to anyone with Internet access. Posting
works on the createyourfate website will eventually lead to re-posts on social media, which will not only capture
the attention of Millennials, and investors interested in the individual‟s particular work. Images of the
creativespace floor plan can be seen in Appendix C.
In order for vitaminwater to reach as many individuals as possible across the nation, creativespaces
must be in major areas, preferably near universities with high populations or cities with a large proportion of
young individuals, where we are confident young people will be inspired to come and create their fates. Cities
such as San Diego, Brooklyn, and Austin will all feature creativespaces. Co-marketing with local businesses will
play a huge role in getting Millennials to come out to the creativespaces in their respective areas. For example,
getting local art museums to feature art from the creativespaces would not only introduce the individual‟s work
to a broader platform, but it will also give the museum attention it would not typically receive. This idea could be
implemented in all of the areas which we believe vitaminwater can help eager Millennials and local
businesses. vitaminwater needs to reach out to the people they want to have represent vitaminwater on a
regular basis. creativespaces will do just that.
Alternative Marketing
Non-traditional marketing will be the main focus of pushing the vitaminwater brand. Through chosen
platforms relevant to the positioning of the brand, we have formulated alternative strategies to reach our target
audience. We will be marketing to our audiences through events, product placement, co-marketing, street
12
teams, retailers, and vitaminwater‟s very own createyourfate foundation. These platforms have been selected
with the careful realization that the best way to reach the target demographic is through non-traditional forms.
As mentioned earlier, vitaminwater‟s createyourfate campaign focuses on those with entrepreneurial
and artistic minds. To reach out to, inspire, and assist those individuals, we will sponsor and host music, art,
fashion and networking events. Events geared towards the arts will include sponsoring and hosting events
similar - but not limited - to alternative music festivals, Los Angeles and New York fashion week, and art walks.
When hosting these events, we will partner with local Fashion, Music, and Art Institutes as well as creative
brand companies in those respective fields. We will also target young adults with entrepreneurial minds by
hosting networking events and workshops. Through these events, we will partner up with Kickstarter, Angel
Investors, and the Society of Retired Business Executives to give participants opportunities to connect and gain
real-world knowledge from those who are more experienced than themselves.
We will also partner up with expositions, specifically the Anime Expo, which is held every year which
recorded of over 161,000 attendees in 2013[30]. E3, a gaming expo also held each year, had a record of 48,200
attendees in 2013 [31]. These expos can last more than two days, and at least 50% of attendees are between the
ages of 20-39.[32] Both expos offer sponsorship and partnership opportunities. vitaminwater should focus on
increasing brand awareness at both of these expos by placing their brand on every attendee bag, sponsoring
popular events/main events at the expos, and hosting an interactive booth where free vitaminwater beverages
and gifts will be given out. The goal should be to create a meaningful experience with young adults who will
share their brand experience through word-of-mouth.
vitaminwater will use those individuals with entrepreneurial minds to help coordinate hosted events, as
well as create “street teams” of students that attend specific college campuses to act as college ambassadors.
These street teams will have their own supply of popular vitaminwater flavors to hand out to students. Certain
street teams will also branch out of college campuses and attend other music events or concerts to hand out
samples of vitaminwater flavors.
Co-marketing and product placement will also be used with Uber and Adobe Photoshop. Strategically
placing vitaminwater coolers in the Uber cars to be sold or handed out will generate brand awareness among
individuals. Other forms of co-marketing and product placement can take place between vitaminwater and
other brands with creative assistance such as Adobe Behance. Product placement will play a huge part in the
vitaminwater marketing plan. The brand has to be placed in areas that relate to the createyourfate campaign
as well as in areas where the target demographic will know and recognize the product.
Digital Communication
On top of alternative marketing, we will also use a combination of digital media channels such as social
media, video websites, and online radios to communicate the createyourfate campaign.
Digital media is the only place to reach the target segment. Traditional media will not work on these
individuals, as they are always on the go and don‟t have the patience for commercial pauses. These are
Millennials who are willing to pay that extra monthly fee on programs such as Netflix, and Pandora One just to
avoid repeating commercials, proving the move to digital communication is that much more important. When it
comes to digital advertisements, we must tread lightly; we are dealing with Millennials who are extremely
sensitive when it comes to their digital space. It must be a message that does not intrude carelessly on the
user‟s time and space. We must make the message something that the viewer will agree with - we need to
provide them with an experience that suggests they are helping make a positive difference.
A website will be set up for the createyourfate campaign. On this website, we will provide resources,
professional development, training, and webinars. These are resources for our artists and entrepreneurs to
succeed in their respective fields. Some examples of resources include monetary support, locations to work on
projects, and connections with experts in the field. Through our website, we will inform our users on relevant
professional development opportunities that will increase their chances for success. We will also offer training
sessions for those who are new to their field. For those who are not able to make it to our Creative Space, we
13
will have a Creative Cyberspace for them to work remotely from the comfort of their homes. To view the
createyourfate website homepage, refer to Appendix B1.
One way to provide that experience is through social media channels. We will create a brand image
that is fun and exciting for our followers, and use the channels shown above to accentuate our createyourfate
campaign. These social media accounts will be managed by a group of brand image professionals who share
the same vision as vitaminwater.
As they are two of the most widely-used social media platforms in existence, our Facebook and Twitter
accounts will be a media and message device in which our posts will be large high-definition images, videos
from Fader events, contests, funny quotes, inspirational quotes, and life hacks. We will establish a
createyourfate Facebook and Twitter page where we will offer opportunities for resources, training, and
webinars. We will encourage follower engagement by providing opportunities to interact with us. Our goal is to
build a positive relationship with our consumers by involving them in our contests; we will publicly recognize
winners and strive to have followers share our posts to reach and recruit additional followers.
Instagram will be used for daily creative artist posts, re-grams of selected vitaminwater users, photos
from the creativespace, quirky posts, and an awkward selfie contest. Having sponsored advertisements on
Instagram is a risk, as advertisements on Instagram are not popular or common among the platform‟s users.
Through Instagram, we will host contests with prizes such as cash, Fader products, and vitaminwater products,
providing an incentive for them to start interacting with us. We will have vitaminwater goody bags filled with
promotional t-shirts, stickers, posters of artists, concert tickets, and other major rewards. These goody bags will
be given to contest winners; the amount given out is determined by the size of the event. The major prize
includes a round trip for two to Oahu, Hawaii.
The vitaminwater Tumblr page needs to be refocused for the createyourfate foundation, and will be
used for artists, musicians, other creatives, and humorous content. Users will be able to post on their Tumblrs,
making the media device exclusive and more engaging.
Snapchat is one of the newer social media platforms we will be utilizing. Snapchat will be used to
update followers on what is happening with vitaminwater and the creativespace through video clips, and we
will have a combination of inspirational, meaningful, educational, and humorous content within these clips in
hopes that our viewers will gain something meaningful. Another new social media platform we want to use is
Ello. It is a social media site much like Facebook, but vitaminwater will only have a certain amount of friends.
The idea is for vitaminwater to interact with those individuals to the point in which the brand has a well establish
relationship with its users. Lastly, we will also make a createyourfate page on We Heart It app. It is a great app
for sharing photos of vitaminwater, inspirational quotes, and life hacks.
Not only will we be using social media, we will also use online streaming and radio streaming to
promote our createyourfate image. We will advertise vitaminwater during movie previews, as well as
14
advertisements on Hulu and YouTube targeting specific shows and channels that appeal to the 18-24 years old
Millennial. Additionally, we will use online radio stations such as the ones listed in the graphic above to reach
our target market.
Since vitaminwater is partnered with YouTube, it will be easier to collaborate with artists whose image
coincides with the image vitaminwater is trying to portray. First vitaminwater will examine which YouTube
channels have the most relevant viewers. Once the company has compiled a list of compatible candidates,
vitaminwater will form an executional plan to reach out to those individuals, so vitaminwater advertisements
can be strategically placed on their YouTube channels. An example of a great candidate to contact is Lindsey
Stirling, as her brand image is quirky, funny, creative, and unique. We will also be advertising through Hulu, and
the placements of the ads will be carefully chosen among the shows that are the most popular with our target
market.
Not only will we construct the createyourfate image through video media, but we will also build the
image through online radios such as Pandora, Spotify, and SoundCloud. In this day and age, music is
accessible anywhere an individual goes from almost any electronic device. Our in-the-know and up-to-date
target market is partial to mobile music, and listening to music from these online-radio apps is likely a part of
their daily lives. Within these online radios, vitaminwater will advertise our createyourfate foundation on
stations that play certain genres of music relevant to our target market.
Traditional Marketing
Although traditional marketing will not be our core focus to push the vitaminwater brand, we will
introduce innovative ways for consumers to become aware of the createyourfate campaign. vitaminwater will
place ads in areas with high percentage of Millennial commuters which includes bus stops, bus exteriors, metro
stations, inside the metro cars near college campuses.
The vitaminwater brand will be focusing on two different forms of print media. Most major companies
don‟t consider placing ads inside college newspapers, so vitaminwater will take advantage of this opportunity;
however, timing will be key for maximum effectiveness of print ads in college campuses. We will place ads the
first few weeks of the school and will stay away from placing ads during finals week to reduce wasted
advertising dollars. Another avenue of print advertising vitaminwater will implement is target advertising in
specific magazines with high Millennial subscribership. For example, the magazines we will place ads in are
Rolling Stone, Nylon, Wired, Entrepreneur, Cosmopolitan, and Fader because each magazine taps into the
things that concern and are relevant to young adults regarding music, film, fashion, business, technology,
popular culture, and contemporary issues. vitaminwater will also continue to partner with The Fader due to the
future connections that will better establish the creativefoundation and its up and coming artists.
Other than print ads, vitaminwater will also be putting efforts towards television. We understand that
millennial viewership in television has severely declined due to the increase use of Hulu, YouTube, and Netflix,
but this will not stop vitaminwater from advertising in extremely specific, niche television programs. Across the
nation, universities are provided with television entertainment strictly dedicated to college students. The biggest
provider is MTV, with their MTVU program completely dedicated to up and coming new talents in the music
realm, as well as news relevant to college students. Another television program that parallels the quirkiness and
creativity of vitaminwater is Cartoon Network‟s Adult Swim. Strategically placing edgy, captivating commercials
on this late night comical program will differentiate and help vitaminwater‟s brand image by placing them in a
whole new category of beverages that Millennials and others will enjoy.
15
Since the brand will be pushing heavily in music with the creativefoundation and the creativespaces,
vitaminwater will be sponsoring late night radio show takeovers in cities with dense populations of college
students. During the school year, these radio takeovers will showcase the local talent by airing local artist‟s
music on Friday nights. Partnering up with these local radio stations is another way the brand can directly
engage, connect, and help young adults with creating their own fate
Below the Line Promotions
Retailer-based promotions are one of the many ways vitaminwater will differentiate themselves from
their competitors; placing visually appealing ads throughout the store will attract new customers to the product.
These will include new posters with the new “createyourfate” logo and bottle design. Customized vitaminwater
fridges will also be placed in grocery stores, specialty stores, and movie theaters. Interactive screens on the
vitaminwater fridges can attract the attention of young adults who are tech savvy and enjoy self-expression and
interaction. Exclusive launch of a vitaminwater XXX Slurpees at 7/11 should also be considered. [1]
To drive up brand relevance in convenience stores, vitaminwater will partner with 7/11 to create an
exclusive vitaminwater Slurpee. This would be beneficial for both companies if the vitaminwater Slurpee was
offered as an exclusive only for 7/11. This should be launched during the week of 7/11‟s “free Slurpee day”
which occurs every year on July 11th. In 2008 Monster energy drink found success when they created
“collectible cups for the exclusive Slurpee Monster flavor, Black Ice, which was monster big (32-ounce) with cool
3-D graphics of the Monster jagged claw logo and black dome lids [33]”. Taking marketing practices from other
companies that have creatively reached their target audience will help the vitaminwater brand grow. Our online
survey, which can be found in the appendix, shows that most young adults have not tried vitaminwater.
Because Millennials tend to shop at convenience stores, offering exclusives such as Slurpees and special
pricing deals makes sense to reel in first time
buyers.
vitaminwater will introduce standees
in grocery stores with the “createyourfate”
logo near items frequently purchased by
Millennials, such as alcohol and frozen pizza.
Floor decals on grocery and specialty store
floors should be used as well; colorful
footprints with quirky sayings or artsy designs
inside the borders should lead curious
consumers to vitaminwater beverages.
To increase brand relevance in
grocery stores and specialty stores,
vitaminwater will display exclusive bottle
designs created by young creatives who used the vitaminwater creativespace. These bottles should be placed
in interactive and personalized fridges at the front of the stores near checkout stands. On each fridge, the
interactive fridges can display “What vitaminwater flavor are you?” quizzes.
With all Regal Cinemas having strong ties to Coca-Cola, it would be relatively easy to start serving
vitaminwater at these theatres with low cost. With Millennials trying to avoid soda, vitaminwater would be a
welcome change to them. vitaminwater will promote younger generations to “createyourfate” by integrating
vitaminwater into their everyday lives and surrounding them with positive imagery of a company that believes in
them and in what they can create. By constantly reminding Millennials of the vitaminwater brand through
alternative marketing, digital communication, social media platforms, video and radio, traditional marketing, and
below-the-line promotions, vitaminwater will become a brand that will help Millennials create their fate while
integrating the brand into their daily lives.
16
Evaluation and Control
To make sure all of the tactics used are effective, there will be measurements and controls, along with
a contingency plan for a worst case scenario. Some of the more crucial measures are unaided brand
awareness, aided brand awareness for brand recognition, brand recall, volume sold, social media metrics, and
awareness of promotions, brand image, retail space, and reach of promotions. These will be assessed to see
how well vitaminwater achieves the primary goal of penetrating a new, younger market. They will also be
measured to make sure that the secondary goal of maintaining the older consumer crowd is achieved.
Measurements will be taken on a quarterly basis to ensure specific marks are being met. Aspects such
as brand image and retail space will only be measured annually or semi-annually because these will not change
enough quarterly to make a dramatic difference. Surveys will be conducted to evaluate brand image and
reaction and feelings toward the campaign. POP tactics will be measured to test whether the in-store tactics
introduced are successful in turning a profit, as well as capturing audience attention. All profits and results will
be compared with goals in order to evaluate success of the campaign. Please see the evaluation and control
GANTT Chart in Appendix D and the sales forecast in Appendix E for more in depth information.
Contingencies
As a contingency plan, about 10% of the overall budget will be set aside for any future adjustments that
need to be made. This might include altering the allocation of promotional funds among distribution channels if
indented channels do not hit the target benchmarks. For example, if C-stores do not show the returns expected,
funds allocated for C-stores will be shifted towards a more promising channel, such as grocery stores where the
secondary target market often frequents. The 10% reserve also allows promotions to be toned down to retain
the secondary objective. Although the funds will mostly be spent on fixing problems, if a tactic is very successful
these funds can be used to invest in it further. For example, if the creativespace performs better than expected,
more money can be used to invest further in building another place. Any additional funds will be allocated to
better help the successful branches of this marketing plan.
Conclusion
Coca-Cola‟s revitalized vitaminwater brand will revive an oversaturated and overlooked beverage category.
This plan will create a new image for this enhanced water beverage and directly incorporate the brand into the
target audience‟s lifestyle. Our fresh marketing strategy and creative tactics will break away from the brand‟s
mundane image, and instead establish vitaminwater as the sole brand for Millennials to take personal
responsibility to live out their dreams. vitaminwater has set itself apart from competitors in the past and will do
so once more, this time while fueling the desires of 18-24 year-olds by addressing them as individuals and
engaging with them rather than at them. With a heavy focus on C-stores and the unique characteristics of this
remarkable generation, vitaminwater will once again become a relevant brand in the minds of young adults in
2015. With the new design, channel strategy, and innovative IMC, vitaminwater will create its own fate as a
successful brand that is recognized by American Millennials not only as a beverage, but as a lifestyle.
17
End Notes
[1] http://www.cspnet.com/category-news/general-merchandise/articles/how-wow-millennials
[2] AMA Case Study, Pg. 1 Source: Nielsen AMC Annual 2013
[3] http://www.bevnet.com/events/live-summer-2012/rohan-oza-former-glaceau-vitaminwater-cmo-to-be-
featured-at-bevnet-live
[4] AMA Case Study, Pg. 5
[5] http://www.bevnet.com/magazine/issue/2011/channel-check-4
[6] http://online.wsj.com/articles/coca-cola-to-settle-lawsuit-over-glaceau-vitaminwaters-marketing-1412635402
[7] http://www.bevnet.com/news/2014/vitaminwater-adds-stevia-fans-go-bonkers
[8] AMA case Study, Pg. 7
[9] http://www.bevindustry.com/articles/87797-vegetable-flavors-trending-for-beverages-because-of-healthy-
halo?v=preview
[10] http://www.cnbc.com/id/102147667
[11] http://www.cspnet.com/category-news/general-merchandise/articles/how-wow-millennials
[12] http://www.marketwatch.com/story/preliminary-approval-of-settlement-agreement-in-vitaminwater-class-
action-lawsuit-2014-10-06].
[13] http://www.uschamberfoundation.org/millennial-generation-research-review
[14] http://www.njbiz.com/article/20141002/MILLENNIAL/141009941/Millennials-are-%27Born-to-Run%27-even-
if-Springsteen-song-is-older-than-they-are
[15] http://danschawbel.com/blog/74-of-the-most-interesting-facts-about-the-millennial-generation/
[16] http://hotel-online.com/News/PR2013_2nd/Apr13_MillennialTrends.html
[17] http://www.businesswire.com/news/home/20140814005786/en/vitaminwater%C2%AE-Fader-Unite-
%E2%80%9CHydrate-Hustle%E2%80%9D-Breakthrough-Artists#.VHvi-jHF9Yg
[18] http://www.archpointconsulting.com/articles/8-truths-about-millennials-can-change-way-you-do-business
[19] http://www.mediapost.com/publications/article/231414/analyzing-vitaminwaters-formula-flip-flop.html
[20] http://www.medicaldaily.com/vitaminwater-replaces-sugar-artificial-sweetener-stevia-customers-say-new-
taste-cough-syrup-287732
[21] http://www.medicaldaily.com/monk-fruit-first-healthy-artificial-sweetener-also-tastes-great-265647
[22]
http://greatwinenews.com/designing-wine-labels-for-the-millennial-generation/
[23] http://www.allbusiness.com/marketing-to-millennials/16697426-1.html
[24] http://magazine.csnews.com/i/395074/75
[25] AMA Case Study, Pg. 8
[26] ttp://www.hartman-group.com/acumen/Millennials-eating-out-trends-2014-06-5.pdf
[27] http://www.forbes.com/sites/robertpassikoff/2014/09/10/consumers-not-lovin-fast-food-as-much-these-days/
[28] ttps://www.barna.org/barna-update/culture/655-sequels-selfies-and-space-2013-at-the-
movies#.VHzzjMmKVa8
[29] http://www.uschamberfoundation.org/millennial-generation-research-review
[30] http://www.anime-expo.org/2013/07/anime-expo-announces-record-attendance-for-ax-2013/
[31] http://www.anime-expo.org/assets/2014/05/Anime-Expo-Sponsorship-Prospectus.pdf
[32] http://www.qsrmagazine.com/news/7-eleven-introduces-energy-slurpees
A1
AGE RESPONSES % ETHNICITY RESPONSE %
18-24 YEARS OLD 261 100% WHITE 102 39%
ASIAN 54 21%
LOCATIONS RESPONSES % AFRICAN AMERICAN 9 3%
CALIFORNIA 233 89% HISPANIC 80 31%
NEW YORK 13 5% OTHER 16 6%
OTHER 15 6% TOTAL: 261 100%
GENDER RESPONSES % HOW MUCH WORK? RESPONSES %
MALE 100 38% FULL-TIME JOB 43 17%
FEMALE 159 61% PART-TIME JOB 130 51%
PREFER NOT TO SAY 2 1% NOT WORKING 83 32%
TOTAL: 261 100% TOTAL: 256 100%
PURCHASE LOCATIONS RESPONSES % HOW MUCH SCHOOL? RESPONSES %
1. GROCERY STORES 83 53% FULL-TIME STUDENT 204 80%
2. CONVENIENCE STORES 44 28% PART-TIME STUDENT 16 6%
3. CLUB STORES 11 7% NOT IN SCHOOL 36 14%
4. DRUG STORE 7 5% TOTAL: 256 100%
5. VENDING MACHINES 6 4%
6. OTHER 5 3%
TOTAL: 156 100%
APPENDIX A: Primary Research
For vitaminwater‟s primary research, we conducted an online survey, a blind taste survey, and a label
survey to get into the minds of our target consumers. We were able to receive 261 responses within the age group of
18-24 years old for our online survey. For our blind taste test, we were able to receive 172 responses within the age
group of 18-29 years old. For our label survey, we were able to collect 286 responses within the designated age
group. The objectives of these surveys were to find out what Millennials look for in their enhanced flavored water
beverage.
A1: Online Survey
We used Qualtrics to collect and analyze our online survey. We found out what attributes Millennials care for
in an enhanced water beverage. We gained knowledge on the frequencies of use for vitaminwaters and our
competitors. We also learned the activities that our target market likes to participate in. The goal of this survey was to
gain insights about how our target market feels about enhanced water beverages and vitaminwater.
PARTICIPATED WITHIN LAST MONTH RESPONSES %
LIVE CONCERT 93 36%
LIVE SPORTS EVENT 61 24%
NIGHTCLUBS / BARS 126 49%
OUTDOOR ACTIVITIES 159 62%
VIDEO GAMES 127 50%
MOVIES 135 53%
GYM 163 64%
TOTAL: 256 100%
A1.1: Charts and Graphs
A2
38%
53%
65%
69%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
MALE % FEMALE %
% of Male and Female that never tried
vitaminwater
vitaminwater base
vitaminwater zero
ATTRIBUTE RATINGS OF FLAVORED WATER IMPORTANCE BASE ZERO
1. TASTE 4.67 4.02 4.19
2. HYDRATION 4.38 4.18 4.00
3. HEALTHY 4.10 3.35 3.75
4. VITAMINS/ELECTROLYTES 3.78 3.82 3.76
5. ALL NATURAL 3.72 3.02 3.12
6. FLAVOR VARIETY 3.47 4.02 4.19
7. LOW CALORIES 3.23 3.14 4.09
8. AROMA 2.98 3.38 3.43
9. LABEL/PACKACKING 2.83 3.35 3.52
10. COLOR 2.68 3.80 3.82
11. FUN/CREATIVE 2.59 3.20 3.51
N=245 N=51 N=67
A3
43%
24%
19%
15%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Powerade zero: Mixed
Berry
Kirland's VitaRain: Acai
Blueberry Pomegranate
lifewater zero: Acai
Blueberry
vitaminwater zero: XXX
ZERO CALORIE DRINK: BEST FLAVOR
A2: Blind Taste Survey
For our vitaminwater blind taste survey, there were parameters set in place to ensure the integrity of our
test. Like the online survey, we used Qualtrics to conduct this test. The blind taste tests were held on various college
campuses and some of the supplies we have used were: Cups, measuring cups, ice, cooler, table, iPads, and
smartphones. We conducted this test with 3-4 people every time. One person was in charge of refilling the drinks
without revealing the drinks. Two people were in charge of inputting data of our blind taste test participants. During
this test, we tested full calorie drinks with vitaminwater XXX base and tested zero calorie drinks with vitaminwater
XXX zero. The full calorie drinks we have used to compare were: Cranberry Raspberry PACt, Cool blue Gatorade,
Mountain Berry Powerade. The zero calorie drinks we have used to compare were: Acai blueberry lifewater, mixed
berry Powerade zero, acai blueberry pomegranate VitaRain. The objective of this test was to gain insight on the
senses of our target consumers; we wanted
data on end-user‟s preference in color, smell,
and taste.
As shown in the graph to the right,
15% of the respondents like the taste of
vitaminwater zero XXX and 26% of the
respondents thought that vitaminwater zero
XXX had the worst taste compared with the
rest of the beverages. Therefore, we
recommend vitaminwater to change its zero
product sweeter, stevia, to monk fruit to
upgrade its taste.
A4
A2.1: Survey Questions
A5
A3: Label Survey
For our vitaminwater label survey, we were able to have 286 participants. The purpose of the survey was to
know what label best appealed to the Millennial generation. According to our survey results, 49% of the participants
chose label A as their top choice.
A6
APPENDIX B: Marketing Graphics
B1: createyourfate Website
B2: createyourfate Facebook
A7
B3: createyourfate Instagram
B4: createyourfate Twitter
A8
B5: Hulu Ad
B6: YouTube Ad
A9
B7: Pandora Ad
B8: Spotify Ad
A10
APPENDIX C: creativespace Floor Plan
Entrance/ Employee Offices
Music Space Lounge Graphics Space
Fashion/Art/Meeting Space
A11
APPENDIX D: GANTT CHART
A12
A13
APPENDIX E: Sales Forecast
2015
vitaminwater base
sales
vitaminwater zero
sales
Q1 $118,257,729 $46,886,996
Q2 $118,257,729 $46,886,996
Q3 $118,257,729 $46,886,996
Q4 $119,440,306 $47,355,865
Total: $474,213,493 $188,016,853.00
GRAND
TOTAL: $662,230,346.29
2016
Q1 $121,231,911 $48,066,202.98
Q2 $123,050,390 $48,787,196.02
Q3 $124,896,145.39 $49,519,003.96
Q4 $126,769,587.57 $50,261,789.02
Total: $495,948,033.39 $196,634,191.97
GRAND
TOTAL: $692,582,225.37
2017
Q1 $128,290,822.62 $50,864,930.49
Q2 $129,830,312.49 $51,475,309.65
Q3 $131,388,276.24 $52,093,013.37
Q4 $132,964,935.56 $52,718,129.53
Total: $522,474,346.92 $207,151,383.04
GRAND
TOTAL: $729,625,729.96
A14
APPENDIX: End Notes
[1] http://www.businessweek.com/articles/2012-04-27/breaking-into-the-energy-drink-business
[2] http://www.graphicdesignblog.org/famous-brands-rebranding-cost
[3] http://fashionista.com/2014/02/new-york-fashion-week-cost
[4] http://www.howmuchisit.org/slush-machine-cost/
[5] http://fashionista.com/2013/04/coachella-business
[6] http://latrending.com/how-much-does-it-cost-to-make-edc-possible/
[7] http://www.anime-expo.org/assets/2014/05/Anime-Expo-Sponsorship-Prospectus.pdf
[8] https://get.uber.com/drive-uber/inland-
empire/p2p/?utm_source=AdWords_NonBrand&utm_campaign=search|mobile|drivers|inland-empire|country-1|city-
228228|keyword_Lyft|matchtype_b|ad_63126308440|campaign_competitor|group_lyft%3Ebroad&utm_medium=keni
d_66ee903e-10ce-0688-1adc-000018a6a7ea&gclid=CjwKEAiAh7WkBRCQj-_
[9] http://webdesign.about.com/od/beforeyoustartawebsite/a/how-much-should-a-web-design-cost.htm
[10] http://localmarketingideas.com/how-much-does-radio-advertising-cost/
[11] http://digiday.com/publishers/what-online-ads-really-cost/
[12] http://www.gaebler.com/Rolling+Stone-magazine-advertising-costs++30492
[13] http://smallbusiness.chron.com/much-magazine-advertising-cost-56136.html
[14] http://www.gaebler.com/Newspaper-Advertising-Costs.htm
[15] http://www.nationwideadvertising.com/new30daydail.html
[16] http://www.bluelinemedia.com/transit-advertising#rates
[17] http://www.webstaurantstore.com/avantco-sc-80-countertop-display-refrigerator-with-glass-door-2-7-cu-ft-
115v/360SC80.html
[18] http://www.stickeryou.com/2/about-stickeryou/product-quality-wall-decals
[19] http://www.shindigz.com/party/personalized-beer-bottle-standee/pgp/12szksbeer
[20] http://www.loopnet.com/New-York/Brooklyn_Office-Space-For-Lease/
[21] http://m.recordingconnection.com/reference-library/recording-entrepreneurs/how-much-does-a-music-studio-
cost-2-0611/
[22] https://www.google.com/search?client=ms-android-
verizon&sboxchip=Shopping&biw=360&bih=301&tbm=shop&ei=MV2OVPqqDsX8oATDroGABw&q=how+much+do+
commercial+3d+printers+cost&oq=how+much+do+commercial+3d+printers+cost&gs_l=mobile-gws-
serp.3...33592.59959.0.61449.43.30.0.13.13.1.660.6709.0j15j14j5-1.30.0.ehm_loc...0...1c.1.60.mobile-gws-
serp..14.29.4083.3.nJZTlTb792w#spd=981068684060960902
[23] http://www.qualitylogoproducts.com/custom-bags/cinch-up-back-pack.htm?ribbonName=sale
A15
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Moriarty, Colin. "E3 2013 Attendance Numbers Revealed, E3 2014 Dated - IGN." IGN. IGN, 14 June 2013. Web. 17
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Rothman, Max. "Vitaminwater Adds Stevia, Fans Go Bonkers." BevNETcom. BevNET, 12 June 2014. Web. 16 Dec.
2014.
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California State Polytechnic University Pomona_Full Written Case

  • 2. 2 Table of Contents Executive Summary.........................................................................................................................1 Situational Analysis.........................................................................................................................2 S.W.O.T. Analysis..............................................................................................................2 Situation Summary............................................................................................................3 Strategic Marketing Recommendations..........................................................................4 Goals and Objectives ......................................................................................................................4 Target Consumers...........................................................................................................................5 Positioning.......................................................................................................................................6 Marketing Mix...................................................................................................................................6 Product...............................................................................................................................7 Packaging and Labeling ...................................................................................................8 Price....................................................................................................................................8 Channel Strategy...............................................................................................................9 Integrated Marketing Communication Plan...................................................................10 Alternative Marketing......................................................................................................11 Digital Communication ...................................................................................................12 Traditional Marketing......................................................................................................14 Below the Line Promotions ............................................................................................15 Control Measurements and Contingencies Plan ........................................................................16 Evaluations & Controls...................................................................................................16 Contingencies..................................................................................................................16 Conclusion.....................................................................................................................................16 End Notes.......................................................................................................................................17
  • 3. 3 APPENDIX: Table of Contents APPENDIX A: Primary Research.................................................................................................A1 A1: Online Survey ...................................................................................................A1 A1.1: Charts and Graphs ........................................................................................A1 A2: Blind Taste Survey......................................................................................................A3 A2.1: Survey Questions..........................................................................................A4 A3: Label Survey................................................................................................................A5 APPENDIX B: Marketing Graphics..............................................................................................A6 B1: createyourfate Website.....................................................................................A6 B2: createyourfate Facebook..................................................................................A6 B3: createyourfate Instagram..................................................................................A7 B4: createyourfate Twitter.......................................................................................A7 B5: Hulu Ad..............................................................................................................A8 B6: YouTube Ad ......................................................................................................A8 B7: Pandora Ad .......................................................................................................A9 B8: Spotify Ad..........................................................................................................A9 APPENDIX C: creativespace Floor Plan....................................................................................A10 APPENDIX D: GANTT Chart.......................................................................................................A11 APPENDIX E: Sales Forecast.....................................................................................................A13 APPENDIX: End Notes ...............................................................................................................A14 Bibliography................................................................................................................................A15
  • 4. 1 Executive Summary vitaminwater used to be a strong, successful, and memorable brand among young beverage consumers. Once the pioneer of the enhanced water beverage category, it now competes in an oversaturated and mature category. We will reboot vitaminwater by modernizing the label, refining and repositioning the product, and directly addressing Millennial‟s needs and desires in a compelling beverage brand. Our unique marketing plan, combined with our innovative tactics, will place vitaminwater in the hearts, minds, and stomachs of 18-24 year-old consumers.
  • 5. 2 Situational Analysis – S.W.O.T. To understand what is happening with vitaminwater, this section briefly outlines our S.W.O.T. analysis. Strengths  Highest market share within its category.  Strong initial launch.  Promotions with the FADER and #uncapped concerts.  Financial and distribution resources provided by the Coca Cola Company.  Sister brand smartwater, is growing steadily.  Strong loyalty with 35-44 & 55-64 year olds. Weaknesses  Damaged reputation due to health claim lawsuits.  Ambiguous brand positioning.  Declining sales.  Underutilized social media.  Heavy focus on non-responsive hip hop audience. Opportunities  Rise in popularity of ethnic/cultural flavors.  Rise in popularity of seasonal products.  Unique characteristics of Millennial aged 18-24.  Consumer interest in health and wellness.  Growth of C-stores among Millennials [1] Threats  Risk of future legal actions.  Increasing competition.  Substitute beverage categories threaten to take volume from the enhanced water category.  MiO water drops also threaten to take volume form enhanced water category. Strengths vitaminwater‟s strongest attribute is the control they hold over the market share in the enhanced water beverage category, currently leading with 62%.[2] This is attributed to vitaminwater pioneering the enhanced water beverage category, along with the company‟s use of innovative marketing programs and creative partnerships with celebrities. [3] vitaminwater‟s rapid success, attributed to their use of 50 Cent‟s creative partnership with the company at the height of his career, led to The Coca-Cola Company‟s acquisition of Glaceau. Coca-Cola currently provides vitaminwater with the financial resources and distribution networks provided to products within their portfolio, a significant advantage that vitaminwater‟s competitors do not possess. Currently, vitaminwater is partnered with YouTube and The FADER, and the product is endorsed by the artists who perform at their #uncapped concerts.[4] Current insights from the 2011-2013 Eq Volume Index chart indicate that vitaminwater‟s strongest segment for its trademark base product and zero products are those aged 35-44 and 55-64.[4] Another possible strength is in the steady growth of their sister-brand, smartwater; according to BevNet, smartwater sold more than Arrowhead and Evian in 2011.[5] Weaknesses In order for vitaminwater to grow, its current weaknesses must be addressed. vitaminwater‟s reputation has been damaged through a series of lawsuits regarding health claims and deceptive labeling, and as a consequence the company must forego claims regarding “the drinks and their effects on the body,” and state the amount of calories per bottle on their front label as well as “see nutrition facts for more details,” stated in bold.[6] Consumer backlash due to a formula change in the base sweetener has also contributed to damaging vitaminwater‟s reputation, and although the formula has since been reinstated, consumers have nonetheless expressed strong negative feedback on the brand‟s Facebook page.[7] These dramatic upheavals resulted in declining sales; according to the data provided in the case, profits for vitaminwater base have totaled “$868 million in 2009, $769 million in 2010, $681 million in 2011, $623 million in 2012, and $516 million in 2013.”[8] Another of vitaminwater‟s weaknesses is the brand‟s hyper-focused targeting of hip hop market, along with their failure to instate a clear positioning strategy. vitaminwater‟s current marketing campaign, #HydrateTheHustle, promotes an unclear image that ambiguously defines the brand as a “hydrating beverage.”
  • 6. 3 This lack of clarity is reflected on their social media sites, where their generic photo and video content from their Facebook, Instagram, and Twitter pages lack engagement with their audience. Additionally, vitaminwater‟s heavy focus on a non-responsive hip hop market contributed to a campaign that was not broad enough to reach the 18-24 year old consumers. If vitaminwater were to examine the tactics used by companies with consistently high social media engagement and participation rates, they may be able to apply certain learned mechanisms in order to reach their full potential, in terms of online presence. Opportunities The beverage industry is experiencing a shift in flavors that reflects consumers‟ interest in health and wellness.[9] Additionally, the rise in seasonal and cultural influenced flavors in other popular beverage categories, can be attributed to consumers seeking innovation, flavor, and variety.[10] These opportunities enable vitaminwater to expand its product line and tailor to the needs and wants of younger consumers. Because Millennials strive to differentiate themselves from prior generations, there are many unique characteristics of 18- 24 year olds that industry leaders can pursue and take advantage of. More details regarding Millennial‟s spending power, brand relationship, diversity, response to social media, goals and aspirations are provided in the Target section. Also there is a trend among young adults for convenient purchases, and because of this they spend more time and money in convenience stores than older adults.[11] Understanding the Millennial perspective regarding brand image creates an opportunity for vitaminwater to build long-time repeat buyers within this influential generation. Threats Several threats face vitaminwater, such as future legal actions against vitaminwater due to health claims.[12] Substitute beverage categories such as sports drinks and regular water threaten to steal market volume from the enhanced water beverage category, and they specifically target vitaminwater for share of stomach. Another threat vitaminwater faces lies within its own category, as new companies are continuously breaking into the enhanced water beverage industry and stealing market share. Competing products such as Hint, Aquafina, SoBe Lifewater, Sparkling Ice, Talking Rain, VitaRain, MiO and Activate threaten vitaminwater with increased competition, potential loss of shelf space, and potential loss of market share. Once these threats are minimized, vitaminwater will be able to recover its market power and succeed as a brand. Situation Summary The Coca-Cola Company has an opportunity to revive its struggling brand, vitaminwater. An innovative product with an innovative marketing strategy, vitaminwater once captured the youth market of the year 2000 but currently fails to position itself effectively in the minds of 18-24 year old Americans in today‟s market. vitaminwater has great potential for growth within convenience stores where Millennials are 53% more likely to frequent than consumers older than 35. Millennials are more interested in forging their own paths rather than following the path set out for them by their parents. Like the target market, vitaminwater must capture its destiny and create for itself a brand that is relevant to Millennials. vitaminwater should not only be a product that fortifies your body, but a brand that fortifies your creative and entrepreneurial passion by providing tools, resources, and networking that is needed in the modern world to “createyourfate”. Despite the challenges vitaminwater faces, the company has immense potential for growth. vitaminwater will implement strategies that deflect attention from previous shortcomings, and focus on what vitaminwater can do for the consumer, both physically and emotionally. Our research suggests that vitaminwater‟s relationship with Coca-Cola is an underutilized advantage that we will discuss in our IMC plan can play a significant role in the brand‟s future. vitaminwater‟s ambiguous position in the market and specific targeting of an unresponsive audience must also be addressed. Redefining not only the brand, but also the target audience, will allow vitaminwater to stand out among their sea of competitors and address the unique opportunities Millennials provide, thereby creating a fresh fate for vitaminwater.
  • 7. 4 Strategic Marketing Recommendations Millennials are a generation of dreamers, doers, feelers, and achievers. They aspire to live a life where fulfillment is key, and there is no freedom without freedom of expression. vitaminwater will represent what every millennial stands for freedom, creation, and individuality. This brand will inspire these up-and-coming innovators, go-getters, and creatives to pursue their passions, highlighting each individual's potential to create their own fates. vitaminwater will establish the createyourfate campaign, which works to empower Millennials to use their own creative talents to make an impact on the world. vitaminwater will speak to 18-24 year-olds directly as a premium super-water that helps your dreams step out of the box, into the social realm, and into reality. Goals and Objectives A S.M.A.R.T. goal is a mnemonic acronym for a better way to establish goals and objectives. It stands for specific (precisely what you are going to achieve), measurable (quantifiable objectives), actionable (what actions will be taken to meet this goal), realistic, and timed. vitaminwater‟s differentiation First in its category Provides resources Focuses on self-expression Fortifies the body, mind, and soul Supports the Arts Supports the entrepreneurs Strives to support 18-24 year olds Introduces seasonal and ethnic flavors
  • 8. 5 Target Consumer - Psychographic Insights The Millennial generation consists of people who were born between 1980 and early 2000s, but specifically for this case, the focus is strictly on the 18-24 year old segment. This younger generation consists of people who are more caring, community oriented, and politically engaged than the generations before them. “This generation masters self-expression, with 75% creating a profile on social networking sites, 20% posting a video of themselves online, 38% with one to six tattoos, and 23% with a piercing in some place other than an earlobe.” [13] Target Market: Segmentation 18-24 Years Old Millennials Independent Individualistic Ownership and Control  Learn for themselves  Enjoy how-to tutorials and life hacks.  Take risks  Innovating efficiency  Believes they are one of a kind  Enjoys customizable products and services  Instills their own personality into what they buy  They are in control of their own lives  Desires to experience new activities  Cares about the society One major trend among Millennials is the concept of personal branding, a way to identify their passions and determine the most expedient path forward.[14] Most young adults agree that their goals have shifted from job stability to life fulfillment, and that their definitions of “success” have changed.[13] They believe that no one else determines their lives but themselves, and that they must create their own fates. To further exemplify a typical Millennial, we have created the following two profiles to consider. Twenty-one year-old Mel is a full-time architecture major at an out-of-state university. Her junior year of college, she studied abroad for a full year in Italy and came back inspired by the beautiful Renaissance architecture. She aspires to be a free-lance architect for the first few years out of college and do her work nomadically as she travels the world with community service organizations such as GIVE Volunteer Abroad. Statistics point out that “61% of Millennials are worried about the state of the world and feel personally responsible to make a difference and leave it better than they came into it.”[15]She spends her spare time on various social media platforms such as Instagram, Snapchat, and Facebook to keep herself updated with her friends, family, and current events. Mel‟s hobbies and interests include crafting and filming DIY YouTube videos, surfing, hiking, watching her favorite shows on Netflix, volunteering at her local animal shelter, and lustily scouring the web for cheap airfare. Twenty-three year-old Justin recently graduated college with a Bachelor‟s degree in Business Administration. He currently works at Kohl‟s as the assistant manager while trying to establish himself as an up- and-coming DJ by playing at friends‟ parties and local club events on the weekends. Justin enjoys producing tracks on his Apple laptop, photography, spending time with his family and friends, and volunteering as a music teacher at his local Boys & Girls Club. Eventually, he aims to create and run his own record label, but for now he is content living in the present and enjoying his life. Mel and Justin, like most Millennials, would rather spend time traveling, experiencing the world, and doing well in any way they can than living their parents‟ American Dream; a stable career, a family, and a white
  • 9. 6 picket fence. Statistic shows that 84% of Millennials say that helping to make a positive difference in the world is more important than professional recognition [15]. Instead, they would rather spend their money on seeing the world and cultivating their own experiences. A report by Boston Consulting Group investigated travel among Millennials and concluded that “travel has risen 10% and Millennials are the fastest growing age segment in travel spending.”[16] Millennials are a unique generation who are concerned about their individuality, strive to make the world a better place, are active, are adventure-driven, and regard themselves as experiencers. They believe that they have the power within themselves to be who they want to be; they have passion, drive, and even focus when it comes to something they love. Positioning vitaminwater is an enhanced flavored water that will support the body throughout the day and support the soul throughout the life of Millennials by way of the creativefoundation - both figuratively and literally hydrating and nourishing them with the necessary vitamins needed to fuel creativity. Millennials are passionate about creativity and the arts, and the desire to create their own fate, pursue their passions, and nourish their minds and bodies will be inspired by vitaminwater‟s creativefoundation. Through the creativefoundation by vitaminwater, the brand will provide Millennials with the tools, resources, and networking necessary for them to achieve success. As mentioned in the Strengths portion of the S.W.O.T., vitaminwater‟s past success with young adults was dependent on creative partnerships and its presence in the hip hop world. Presently, vitaminwater is attempting to reinvent their image through partnerships with The FADER and concerts featuring Ty Dolla $ign and Kendrick Lamar. Not only does vitaminwater fail to address negative health perceptions regarding their product, but they need to strengthen their efforts to position the brand as “cool and trendy” among health conscious and brand sensitive young adults. vitaminwater‟s most recent promotional campaign, “Hydrate the Hustle,” with the #uncapped series and the partnership with The FADER was targeted to connect with Millennials and emphasize that the “path to success is the story of their hustle and hard work: the struggle, the commitment, the perseverance.” [17] Despite vitaminwater‟s promotional efforts, the brand has yet to capture Millennials‟ attention because young adults do not have a clear understanding of the meaning behind vitaminwater. To make matters worse, the word “hustle” has a different definition and negative connotation among 18-24 year-olds than is intended by vitaminwater‟s campaign. vitaminwater pioneered the enhanced water category and created their own fate by becoming a successful company. This brand, unlike its competitors, can credibly promote the idea that individuals can express themselves in their own unique ways, and is able to challenge them to create their own fates. To capture the 18-24 year-old audience, vitaminwater will be introduced as an enhanced flavored water that will inspire Millennials who are passionate about creativity, arts, entrepreneurialism, and individualism to forge their own paths through life and achieve success by following their dreams. vitaminwater will use its resources to provide the Millennials who are experiencers and achievers with the tools and resources they need in order to accomplish their goals. vitaminwater will further differentiate itself from its competitors. Marketing Mix The vitaminwater marketing mix will support the new brand positioning in a variety of creative, impactful, consistent ways that range from product innovations and retailer-based promotions to a groundbreaking PR program focused on inspiring and enabling Millennials to make their dreams a reality. Label redesign, pricing strategies, and channel distribution strategies will be further explained in their respective sections.
  • 10. 7 Product According to Arch Point Consulting, Millennials are known to fuse work with play and enjoy things that are aesthetically pleasing to all the senses.[18] A new product strategy must be implemented to strike a happy medium with young adults, proving to Millennials that vitaminwater is not only a brand seen as quirky and trendy, but also a brand that can be taken seriously. First, vitaminwater must update the packaging and label designs to be more visually appealing to young adults. Their basic label and bottle design has left consumers with the idea that vitaminwater lacks creativity, innovation, and personality. More details will be provided in the package and label section. Second, vitaminwater will eliminate some of its less popular flavors that bring in the lowest sales and introduce new limited-time seasonal flavors. This can give the company an opportunity to focus on up-and- coming flavor trends. Overwhelmed by the heavily saturated market of repeated flavors from competitors, introducing ethnic and seasonal flavors to bring about a dynamic flavor appeal is an appropriate way to grab a young audience‟s attention. From all of the vitaminwater beverages, only five of the highest selling base and zero flavors should be kept: XXX, Power-C, Energy, Revive, and Essential. The zero flavors that should be kept are Squeezed, XXX, Rise, Go Go, and Glow. The rest of the flavors produced by vitaminwater do not make enough sales and should be discontinued from the product line. Seasonal Flavors According to our online survey results (located in the appendix), having a variety of flavors is relatively important to young adults. To compensate for the elimination of select flavors, vitaminwater will add variety to their product line by introducing new seasonal flavors to attract 18-24 year-old consumers. Seasonal flavors should be released twice a year, in September and March, for vitaminwater base products. vitaminwater flavors released in September should be geared towards winter/holiday type flavors such as Peppermint, Spiced Apple Cider, and Horchata. Horchata is a creamy flavored drink that is made of milk, vanilla extract, ground rice, almonds, and cinnamon sticks. By examining best practices from other categories, a regular stream of new seasonal flavors is effective at gaining and maintaining interest among Millennials. Popular millennial brands in the energy drink, craft beer and even ice cream categories regularly introduce new flavors and periodically introduce -time-only seasonal flavors to stay on the radar of young adults who seek variety and novelty. As one example, our team found that Rockstar‟s Horchata flavor has had positive consumer response. Rockstar Horchata proves that this flavor can be introduced even in off-shoot categories such as energy drinks. vitaminwater flavors released in March should be geared towards spring/summer flavors such as Lilikoi, Passion Fruit-Orange-Guava (“P.O.G”), Hibiscus, and even alcohol related beverages such as Sangria and Mojito. Instead of seasonal flavors, our strategy for vitaminwater zero will incorporate more lemonade and fruit combination flavors. Unlike base products, a new limited-time flavor should be released only once a year. Some recommendations for lemonade flavor mixes would be, Strawberry, Mint, Huckleberry, Blueberry, Hibiscus, and Mango-Peach lemonades. Although our team realizes we are not allowed to make any sweetener changes, we would like to suggest a change from the current blend of stevia to monk fruit sweetener in its zero products. vitaminwater should demonstrate to its consumers that the brand cares about them and considers product improvement and innovation. The overall taste of the vitaminwater zero product line also needs to be reassessed, as it received a low rating when compared to competitors in our blind taste test. After doing substantial research regarding vitaminwater‟s taste, we believe a change to the sweetener is necessary to attract more consumers. Consumers who drink zero calorie vitaminwater are still left unsatisfied due to the stevia-sweetened zero beverage.[19] According to Medical Daily, Coca Cola's use of stevia in their drinks has left their beverages to be described as bitter rather than sweet.[20] The use of monk fruit, which is stated as being 300 times sweeter than sugar, would provide the sweet taste consumers desire but without the bitterness.[21] Using monk fruit in the vitaminwater zero formula in conjunction with or as a replacement for the current stevia sweetener would reduce the bitter flavor found in their beverages while still retaining the zero calorie and naturally sweetened
  • 11. 8 aspects that consumers find most appealing. This all-natural zero calorie sweetener will improve the beverage flavor and increase consumer confidence and satisfaction. Packaging and Labeling Since its initial launch, vitaminwater‟s design has consistently stayed basic and needs a fresh look to capture the attention of the Millennial market. The more unique and aesthetically pleasing a label is the more likely the bottle is to be bought, as it is generally perceived that the outward appearance reflects the quality of the wine.[22] We believe this concept can be applied to all beverages, including vitaminwater; to transform it into a contemporary and relevant brand while better highlighting the natural sweeteners and maintaining the existing brand equity, the packaging must be changed. To keep vitaminwater‟s look appealing, our design includes a complete switch to a 16.9 oz. bottle, a black cap, and an all-black label highlighting the trademark tone of the specific bottle by coloring the flavor, name, and vitaminwater title on the package (see appendix for details). The label will continue to have creative, quirky, and funny quotes, however, the quotes will be limited to around 140 characters so customers can retweet and engage with the brand.[23] After surveying 286 students, 49% voted that this label design was the most appealing and would most likely capture their attention (see appendix for current results). Our updated packaging will reflect its unique quality, inspiring Millennials to make the first purchase and motivating them to make future purchases. To prevent consumer confusion, „vitaminwater‟ will stay vertical on the label, all other descriptions (including the flavor and name of the drink) will remain horizontal, and it will feature the witty phrases that vitaminwater is known for. Along with these changes, the „nutrition facts‟ and vitamin table will be featured on the back of the label, providing Millennials more information on what they are consuming. Price Price is still a big concern for Millennials due to their low level of income. Thus, it would be best to adjust the prices in convenient stores to complement our target consumer‟s wallet, with promotional pricing to encourage increased trial among the young adults who frequent convenient stores. Considering the research provided in the case, convenience stores contributed the most to vitaminwater‟s total dollar sales with 44%.[24] Beverages sold in convenience stores should continuously be offered at sale prices, such as 2 for $2. Adjusting
  • 12. 9 the pricing in the C-store category will increase frequency of purchases by Millennials based on the reasoning provided in the Situation Summary, as well as increase vitaminwater‟s total dollar sales as a whole.[25] Channel Distribution Strategy The target audience consists of young individualistic adults aged 18-24, and our strategies must reflect the audience we aim to capture. vitaminwater will continue to generate and support retail distribution in all of its current channels. However, vitaminwater will significantly increase its focus on expanded distribution, maximize shelf space and improve promotion in the convenience store channel to better reach millennial consumers where they most often shop, while maintaining current space in grocery stores. Furthermore, an expansion into non-traditional beverage retailers such as expositions and boutiques will improve visibility and brand image among this target. At convenience stores, exclusive vitaminwater-flavored Slurpees will be introduced, and beverages will be offered at promotional sale prices. vitaminwater fridges should also be placed in unique specialty stores and expos to increase brand awareness. In casual restaurants and movie theaters, vitaminwater should be offered as a fountain drink for consumers to purchase. The goal of these strategies is to promote brand image, trial, and awareness. Focus on Convenience Stores “Almost three-quarters of Millennials shop at a convenience store at least once a week, compared to 68 percent of total respondents. More Millennials also indicated they shop at c-stores almost every day -- 15 percent vs. 11 percent for total respondents,” according to Convenience Store News.[24] Focus on Specialty Stores and Expos To target young creatives, vitaminwater must be placed in locations that are unique and quirky. Customized vitaminwater fridges should be placed in locations such as art galleries, fashion boutiques, skate shops, music/record stores, comic book stores, gaming stores, and gaming/anime expos. Young adults who are present at these trendy locations tend to be tech savvy and are known to share information about products through word-of-mouth. The fridges should be covered with artistic and creative designs from the creativespaces to capture the attention of 18-24 year olds and give them an incentive to purchase vitaminwater. If they enjoy the product they will, in turn, share their experience with friends and acquaintances through social media platforms. Focus on Casual Restaurants Placing vitaminwater as a fountain drink in dining establishments frequented by Millennials will help increase brand awareness and reflect the image of a trendy and high-quality product. vitaminwater must focus efforts into placing their fountain drinks in food establishments at which young adults enjoy dining, since about 49% of Millennials eat out at least once a week.[26] According to forbes.com, there has been a "reported 20% decrease in visits to fast food chains and 42% reported increased visits to fast-casual restaurants in the past year. Virtually all this group (89%) reported looking for [is] fast, casual food that they deemed tastier and healthier.”[27] vitaminwater needs to focus less on placing their fountain drinks in fast food locations such as McDonalds, and focus more on placing of their beverages in casual restaurants that offer quality food at less expensive pricing such as, Chipotle, Panera Bread, Five Guys Burgers, Olive Garden, and Subway. Expanding Focus on Movie Theaters According to barna.org, “Millennials are significantly more likely to go to the movies in general than any other age group. While the average American reported seeing about 3.3 movies in the theater in 2013, Millennials said they saw 4.3.”[24] vitaminwater will focus on expanding the placement of their most popular base
  • 13. 10 flavor (XXX) and zero flavor (zero Squeezed) in established Coca-Cola movie theaters as a fountain drink option that consumers can purchase.[28] Focus on Grocery Store Larger shelf space in grocery stores, compared to convenience stores and drugstores, is an opportunity that must be taken advantage of. The launch of new vitaminwater seasonal flavors should take up some shelf space at each grocery store. The remaining space will be reserved for vitaminwater‟s highest selling flavors that were before mentioned in the third paragraph of the Product section. The main reason is to maintain and grow the brand among the older core consumers, an added benefit is potentially attracting younger consumers in this channel as well. vitaminwater‟s revamped image should be seen as innovative, fresh, trendy, creative, and “new and improved”. This can be achieved at grocery stores by emphasizing exclusive seasonal flavors that have new bottle designs that promote young artists. Channel Distribution Strategy Conclusion vitaminwater will manage to capture the attention of the young, individualistic, and creative adults through its strong presence in convenience stores, specialty stores, expos, casual restaurants, movie theaters, and grocery stores. Through our distribution, vitaminwater will develop brand awareness and encourage young adults to purchase vitaminwater, often as their first time trying the product. vitaminwater's promotional efforts will generate brand awareness, increase brand trial, and create a new brand image for 18-24 year olds. This refocus will set the stage for our Integrated Marketing Promotions plan. Integrated Marketing Communications The entire IMC plan will be focused on communicating that vitaminwater inspires and enables Millennials to create their own fates in this world. Each aspect of the IMC plan will communicate a consistent message and a compelling image for the vitaminwater brand. This unique message will resonate with Millennials while showing current core consumers that their brand is youthful, up to date, and doing good for the world. The createyourfate foundation is the main driving force behind the createyourfate campaign. Through this foundation, vitaminwater will establish regional creativespaces dedicated to creating a safe workshop where individuals looking to excel in the arts and entrepreneurship can use free resources provided to guide them one step closer to creating their fate. Our idea of creating this foundation sparked after observing that the targeted demographic has a large passion for the arts and entrepreneurship, yet they desperately lack opportunities to exhibit. vitaminwater is not only an enhanced water that fuels the body, but it also fuels creativity and expression within individuals. By way of our foundation, digital media, and alternative marketing, vitaminwater will provide the tools and resources necessary for any young and eager dreamer to freely create his or her fate (Refer to Appendix B). vitaminwater holds credibility as an innovative, creative category-creator that no other brand can claim. The original enhanced water that purely focused on catering to the physical needs of consumers in the past will take it one step further by adjusting their focus to fueling the mental and spiritual needs of consumers with the creativespaces. We want to be able to directly connect with inspired young adults who are looking for ways to exploit their talents, while subsequently developing options to give them a boost to reach their potential. Research shows that Millennials are willing to adopt brands that are actively working to create a friendship with their consumers.[29] As previously stated, the createyourfate foundation will provide Millennials resources no other company is providing. vitaminwater‟s creativespaces will provide young adults with the physical equipment to create with, vital contacts to connect with, and support to ensure that they will undeniably be able to create their fates. Refer to the GANTT Chart in Appendix D for timeline, budget, and marketing projects.
  • 14. 11 vitaminwater‟s creativespaces are going to be the one-stop-shop that conveniently supplies resources for our creative consumers. Recording studios for musicians, computers with state-of-the-art programs for digital art, conference spaces for professional meetings, green screen areas for videos, apparel design and production equipment for fashion designers, and drawing tables with various mediums will be available to consumers to spark young Millennials to get their creative juices flowing. The vitaminwater creativespaces will not only be a place for people to express their artistic talents, but also share their works on the Internet and to the public, including a sharing site that allows individuals to showcase their works to anyone with Internet access. Posting works on the createyourfate website will eventually lead to re-posts on social media, which will not only capture the attention of Millennials, and investors interested in the individual‟s particular work. Images of the creativespace floor plan can be seen in Appendix C. In order for vitaminwater to reach as many individuals as possible across the nation, creativespaces must be in major areas, preferably near universities with high populations or cities with a large proportion of young individuals, where we are confident young people will be inspired to come and create their fates. Cities such as San Diego, Brooklyn, and Austin will all feature creativespaces. Co-marketing with local businesses will play a huge role in getting Millennials to come out to the creativespaces in their respective areas. For example, getting local art museums to feature art from the creativespaces would not only introduce the individual‟s work to a broader platform, but it will also give the museum attention it would not typically receive. This idea could be implemented in all of the areas which we believe vitaminwater can help eager Millennials and local businesses. vitaminwater needs to reach out to the people they want to have represent vitaminwater on a regular basis. creativespaces will do just that. Alternative Marketing Non-traditional marketing will be the main focus of pushing the vitaminwater brand. Through chosen platforms relevant to the positioning of the brand, we have formulated alternative strategies to reach our target audience. We will be marketing to our audiences through events, product placement, co-marketing, street
  • 15. 12 teams, retailers, and vitaminwater‟s very own createyourfate foundation. These platforms have been selected with the careful realization that the best way to reach the target demographic is through non-traditional forms. As mentioned earlier, vitaminwater‟s createyourfate campaign focuses on those with entrepreneurial and artistic minds. To reach out to, inspire, and assist those individuals, we will sponsor and host music, art, fashion and networking events. Events geared towards the arts will include sponsoring and hosting events similar - but not limited - to alternative music festivals, Los Angeles and New York fashion week, and art walks. When hosting these events, we will partner with local Fashion, Music, and Art Institutes as well as creative brand companies in those respective fields. We will also target young adults with entrepreneurial minds by hosting networking events and workshops. Through these events, we will partner up with Kickstarter, Angel Investors, and the Society of Retired Business Executives to give participants opportunities to connect and gain real-world knowledge from those who are more experienced than themselves. We will also partner up with expositions, specifically the Anime Expo, which is held every year which recorded of over 161,000 attendees in 2013[30]. E3, a gaming expo also held each year, had a record of 48,200 attendees in 2013 [31]. These expos can last more than two days, and at least 50% of attendees are between the ages of 20-39.[32] Both expos offer sponsorship and partnership opportunities. vitaminwater should focus on increasing brand awareness at both of these expos by placing their brand on every attendee bag, sponsoring popular events/main events at the expos, and hosting an interactive booth where free vitaminwater beverages and gifts will be given out. The goal should be to create a meaningful experience with young adults who will share their brand experience through word-of-mouth. vitaminwater will use those individuals with entrepreneurial minds to help coordinate hosted events, as well as create “street teams” of students that attend specific college campuses to act as college ambassadors. These street teams will have their own supply of popular vitaminwater flavors to hand out to students. Certain street teams will also branch out of college campuses and attend other music events or concerts to hand out samples of vitaminwater flavors. Co-marketing and product placement will also be used with Uber and Adobe Photoshop. Strategically placing vitaminwater coolers in the Uber cars to be sold or handed out will generate brand awareness among individuals. Other forms of co-marketing and product placement can take place between vitaminwater and other brands with creative assistance such as Adobe Behance. Product placement will play a huge part in the vitaminwater marketing plan. The brand has to be placed in areas that relate to the createyourfate campaign as well as in areas where the target demographic will know and recognize the product. Digital Communication On top of alternative marketing, we will also use a combination of digital media channels such as social media, video websites, and online radios to communicate the createyourfate campaign. Digital media is the only place to reach the target segment. Traditional media will not work on these individuals, as they are always on the go and don‟t have the patience for commercial pauses. These are Millennials who are willing to pay that extra monthly fee on programs such as Netflix, and Pandora One just to avoid repeating commercials, proving the move to digital communication is that much more important. When it comes to digital advertisements, we must tread lightly; we are dealing with Millennials who are extremely sensitive when it comes to their digital space. It must be a message that does not intrude carelessly on the user‟s time and space. We must make the message something that the viewer will agree with - we need to provide them with an experience that suggests they are helping make a positive difference. A website will be set up for the createyourfate campaign. On this website, we will provide resources, professional development, training, and webinars. These are resources for our artists and entrepreneurs to succeed in their respective fields. Some examples of resources include monetary support, locations to work on projects, and connections with experts in the field. Through our website, we will inform our users on relevant professional development opportunities that will increase their chances for success. We will also offer training sessions for those who are new to their field. For those who are not able to make it to our Creative Space, we
  • 16. 13 will have a Creative Cyberspace for them to work remotely from the comfort of their homes. To view the createyourfate website homepage, refer to Appendix B1. One way to provide that experience is through social media channels. We will create a brand image that is fun and exciting for our followers, and use the channels shown above to accentuate our createyourfate campaign. These social media accounts will be managed by a group of brand image professionals who share the same vision as vitaminwater. As they are two of the most widely-used social media platforms in existence, our Facebook and Twitter accounts will be a media and message device in which our posts will be large high-definition images, videos from Fader events, contests, funny quotes, inspirational quotes, and life hacks. We will establish a createyourfate Facebook and Twitter page where we will offer opportunities for resources, training, and webinars. We will encourage follower engagement by providing opportunities to interact with us. Our goal is to build a positive relationship with our consumers by involving them in our contests; we will publicly recognize winners and strive to have followers share our posts to reach and recruit additional followers. Instagram will be used for daily creative artist posts, re-grams of selected vitaminwater users, photos from the creativespace, quirky posts, and an awkward selfie contest. Having sponsored advertisements on Instagram is a risk, as advertisements on Instagram are not popular or common among the platform‟s users. Through Instagram, we will host contests with prizes such as cash, Fader products, and vitaminwater products, providing an incentive for them to start interacting with us. We will have vitaminwater goody bags filled with promotional t-shirts, stickers, posters of artists, concert tickets, and other major rewards. These goody bags will be given to contest winners; the amount given out is determined by the size of the event. The major prize includes a round trip for two to Oahu, Hawaii. The vitaminwater Tumblr page needs to be refocused for the createyourfate foundation, and will be used for artists, musicians, other creatives, and humorous content. Users will be able to post on their Tumblrs, making the media device exclusive and more engaging. Snapchat is one of the newer social media platforms we will be utilizing. Snapchat will be used to update followers on what is happening with vitaminwater and the creativespace through video clips, and we will have a combination of inspirational, meaningful, educational, and humorous content within these clips in hopes that our viewers will gain something meaningful. Another new social media platform we want to use is Ello. It is a social media site much like Facebook, but vitaminwater will only have a certain amount of friends. The idea is for vitaminwater to interact with those individuals to the point in which the brand has a well establish relationship with its users. Lastly, we will also make a createyourfate page on We Heart It app. It is a great app for sharing photos of vitaminwater, inspirational quotes, and life hacks. Not only will we be using social media, we will also use online streaming and radio streaming to promote our createyourfate image. We will advertise vitaminwater during movie previews, as well as
  • 17. 14 advertisements on Hulu and YouTube targeting specific shows and channels that appeal to the 18-24 years old Millennial. Additionally, we will use online radio stations such as the ones listed in the graphic above to reach our target market. Since vitaminwater is partnered with YouTube, it will be easier to collaborate with artists whose image coincides with the image vitaminwater is trying to portray. First vitaminwater will examine which YouTube channels have the most relevant viewers. Once the company has compiled a list of compatible candidates, vitaminwater will form an executional plan to reach out to those individuals, so vitaminwater advertisements can be strategically placed on their YouTube channels. An example of a great candidate to contact is Lindsey Stirling, as her brand image is quirky, funny, creative, and unique. We will also be advertising through Hulu, and the placements of the ads will be carefully chosen among the shows that are the most popular with our target market. Not only will we construct the createyourfate image through video media, but we will also build the image through online radios such as Pandora, Spotify, and SoundCloud. In this day and age, music is accessible anywhere an individual goes from almost any electronic device. Our in-the-know and up-to-date target market is partial to mobile music, and listening to music from these online-radio apps is likely a part of their daily lives. Within these online radios, vitaminwater will advertise our createyourfate foundation on stations that play certain genres of music relevant to our target market. Traditional Marketing Although traditional marketing will not be our core focus to push the vitaminwater brand, we will introduce innovative ways for consumers to become aware of the createyourfate campaign. vitaminwater will place ads in areas with high percentage of Millennial commuters which includes bus stops, bus exteriors, metro stations, inside the metro cars near college campuses. The vitaminwater brand will be focusing on two different forms of print media. Most major companies don‟t consider placing ads inside college newspapers, so vitaminwater will take advantage of this opportunity; however, timing will be key for maximum effectiveness of print ads in college campuses. We will place ads the first few weeks of the school and will stay away from placing ads during finals week to reduce wasted advertising dollars. Another avenue of print advertising vitaminwater will implement is target advertising in specific magazines with high Millennial subscribership. For example, the magazines we will place ads in are Rolling Stone, Nylon, Wired, Entrepreneur, Cosmopolitan, and Fader because each magazine taps into the things that concern and are relevant to young adults regarding music, film, fashion, business, technology, popular culture, and contemporary issues. vitaminwater will also continue to partner with The Fader due to the future connections that will better establish the creativefoundation and its up and coming artists. Other than print ads, vitaminwater will also be putting efforts towards television. We understand that millennial viewership in television has severely declined due to the increase use of Hulu, YouTube, and Netflix, but this will not stop vitaminwater from advertising in extremely specific, niche television programs. Across the nation, universities are provided with television entertainment strictly dedicated to college students. The biggest provider is MTV, with their MTVU program completely dedicated to up and coming new talents in the music realm, as well as news relevant to college students. Another television program that parallels the quirkiness and creativity of vitaminwater is Cartoon Network‟s Adult Swim. Strategically placing edgy, captivating commercials on this late night comical program will differentiate and help vitaminwater‟s brand image by placing them in a whole new category of beverages that Millennials and others will enjoy.
  • 18. 15 Since the brand will be pushing heavily in music with the creativefoundation and the creativespaces, vitaminwater will be sponsoring late night radio show takeovers in cities with dense populations of college students. During the school year, these radio takeovers will showcase the local talent by airing local artist‟s music on Friday nights. Partnering up with these local radio stations is another way the brand can directly engage, connect, and help young adults with creating their own fate Below the Line Promotions Retailer-based promotions are one of the many ways vitaminwater will differentiate themselves from their competitors; placing visually appealing ads throughout the store will attract new customers to the product. These will include new posters with the new “createyourfate” logo and bottle design. Customized vitaminwater fridges will also be placed in grocery stores, specialty stores, and movie theaters. Interactive screens on the vitaminwater fridges can attract the attention of young adults who are tech savvy and enjoy self-expression and interaction. Exclusive launch of a vitaminwater XXX Slurpees at 7/11 should also be considered. [1] To drive up brand relevance in convenience stores, vitaminwater will partner with 7/11 to create an exclusive vitaminwater Slurpee. This would be beneficial for both companies if the vitaminwater Slurpee was offered as an exclusive only for 7/11. This should be launched during the week of 7/11‟s “free Slurpee day” which occurs every year on July 11th. In 2008 Monster energy drink found success when they created “collectible cups for the exclusive Slurpee Monster flavor, Black Ice, which was monster big (32-ounce) with cool 3-D graphics of the Monster jagged claw logo and black dome lids [33]”. Taking marketing practices from other companies that have creatively reached their target audience will help the vitaminwater brand grow. Our online survey, which can be found in the appendix, shows that most young adults have not tried vitaminwater. Because Millennials tend to shop at convenience stores, offering exclusives such as Slurpees and special pricing deals makes sense to reel in first time buyers. vitaminwater will introduce standees in grocery stores with the “createyourfate” logo near items frequently purchased by Millennials, such as alcohol and frozen pizza. Floor decals on grocery and specialty store floors should be used as well; colorful footprints with quirky sayings or artsy designs inside the borders should lead curious consumers to vitaminwater beverages. To increase brand relevance in grocery stores and specialty stores, vitaminwater will display exclusive bottle designs created by young creatives who used the vitaminwater creativespace. These bottles should be placed in interactive and personalized fridges at the front of the stores near checkout stands. On each fridge, the interactive fridges can display “What vitaminwater flavor are you?” quizzes. With all Regal Cinemas having strong ties to Coca-Cola, it would be relatively easy to start serving vitaminwater at these theatres with low cost. With Millennials trying to avoid soda, vitaminwater would be a welcome change to them. vitaminwater will promote younger generations to “createyourfate” by integrating vitaminwater into their everyday lives and surrounding them with positive imagery of a company that believes in them and in what they can create. By constantly reminding Millennials of the vitaminwater brand through alternative marketing, digital communication, social media platforms, video and radio, traditional marketing, and below-the-line promotions, vitaminwater will become a brand that will help Millennials create their fate while integrating the brand into their daily lives.
  • 19. 16 Evaluation and Control To make sure all of the tactics used are effective, there will be measurements and controls, along with a contingency plan for a worst case scenario. Some of the more crucial measures are unaided brand awareness, aided brand awareness for brand recognition, brand recall, volume sold, social media metrics, and awareness of promotions, brand image, retail space, and reach of promotions. These will be assessed to see how well vitaminwater achieves the primary goal of penetrating a new, younger market. They will also be measured to make sure that the secondary goal of maintaining the older consumer crowd is achieved. Measurements will be taken on a quarterly basis to ensure specific marks are being met. Aspects such as brand image and retail space will only be measured annually or semi-annually because these will not change enough quarterly to make a dramatic difference. Surveys will be conducted to evaluate brand image and reaction and feelings toward the campaign. POP tactics will be measured to test whether the in-store tactics introduced are successful in turning a profit, as well as capturing audience attention. All profits and results will be compared with goals in order to evaluate success of the campaign. Please see the evaluation and control GANTT Chart in Appendix D and the sales forecast in Appendix E for more in depth information. Contingencies As a contingency plan, about 10% of the overall budget will be set aside for any future adjustments that need to be made. This might include altering the allocation of promotional funds among distribution channels if indented channels do not hit the target benchmarks. For example, if C-stores do not show the returns expected, funds allocated for C-stores will be shifted towards a more promising channel, such as grocery stores where the secondary target market often frequents. The 10% reserve also allows promotions to be toned down to retain the secondary objective. Although the funds will mostly be spent on fixing problems, if a tactic is very successful these funds can be used to invest in it further. For example, if the creativespace performs better than expected, more money can be used to invest further in building another place. Any additional funds will be allocated to better help the successful branches of this marketing plan. Conclusion Coca-Cola‟s revitalized vitaminwater brand will revive an oversaturated and overlooked beverage category. This plan will create a new image for this enhanced water beverage and directly incorporate the brand into the target audience‟s lifestyle. Our fresh marketing strategy and creative tactics will break away from the brand‟s mundane image, and instead establish vitaminwater as the sole brand for Millennials to take personal responsibility to live out their dreams. vitaminwater has set itself apart from competitors in the past and will do so once more, this time while fueling the desires of 18-24 year-olds by addressing them as individuals and engaging with them rather than at them. With a heavy focus on C-stores and the unique characteristics of this remarkable generation, vitaminwater will once again become a relevant brand in the minds of young adults in 2015. With the new design, channel strategy, and innovative IMC, vitaminwater will create its own fate as a successful brand that is recognized by American Millennials not only as a beverage, but as a lifestyle.
  • 20. 17 End Notes [1] http://www.cspnet.com/category-news/general-merchandise/articles/how-wow-millennials [2] AMA Case Study, Pg. 1 Source: Nielsen AMC Annual 2013 [3] http://www.bevnet.com/events/live-summer-2012/rohan-oza-former-glaceau-vitaminwater-cmo-to-be- featured-at-bevnet-live [4] AMA Case Study, Pg. 5 [5] http://www.bevnet.com/magazine/issue/2011/channel-check-4 [6] http://online.wsj.com/articles/coca-cola-to-settle-lawsuit-over-glaceau-vitaminwaters-marketing-1412635402 [7] http://www.bevnet.com/news/2014/vitaminwater-adds-stevia-fans-go-bonkers [8] AMA case Study, Pg. 7 [9] http://www.bevindustry.com/articles/87797-vegetable-flavors-trending-for-beverages-because-of-healthy- halo?v=preview [10] http://www.cnbc.com/id/102147667 [11] http://www.cspnet.com/category-news/general-merchandise/articles/how-wow-millennials [12] http://www.marketwatch.com/story/preliminary-approval-of-settlement-agreement-in-vitaminwater-class- action-lawsuit-2014-10-06]. [13] http://www.uschamberfoundation.org/millennial-generation-research-review [14] http://www.njbiz.com/article/20141002/MILLENNIAL/141009941/Millennials-are-%27Born-to-Run%27-even- if-Springsteen-song-is-older-than-they-are [15] http://danschawbel.com/blog/74-of-the-most-interesting-facts-about-the-millennial-generation/ [16] http://hotel-online.com/News/PR2013_2nd/Apr13_MillennialTrends.html [17] http://www.businesswire.com/news/home/20140814005786/en/vitaminwater%C2%AE-Fader-Unite- %E2%80%9CHydrate-Hustle%E2%80%9D-Breakthrough-Artists#.VHvi-jHF9Yg [18] http://www.archpointconsulting.com/articles/8-truths-about-millennials-can-change-way-you-do-business [19] http://www.mediapost.com/publications/article/231414/analyzing-vitaminwaters-formula-flip-flop.html [20] http://www.medicaldaily.com/vitaminwater-replaces-sugar-artificial-sweetener-stevia-customers-say-new- taste-cough-syrup-287732 [21] http://www.medicaldaily.com/monk-fruit-first-healthy-artificial-sweetener-also-tastes-great-265647 [22] http://greatwinenews.com/designing-wine-labels-for-the-millennial-generation/ [23] http://www.allbusiness.com/marketing-to-millennials/16697426-1.html [24] http://magazine.csnews.com/i/395074/75 [25] AMA Case Study, Pg. 8 [26] ttp://www.hartman-group.com/acumen/Millennials-eating-out-trends-2014-06-5.pdf [27] http://www.forbes.com/sites/robertpassikoff/2014/09/10/consumers-not-lovin-fast-food-as-much-these-days/ [28] ttps://www.barna.org/barna-update/culture/655-sequels-selfies-and-space-2013-at-the- movies#.VHzzjMmKVa8 [29] http://www.uschamberfoundation.org/millennial-generation-research-review [30] http://www.anime-expo.org/2013/07/anime-expo-announces-record-attendance-for-ax-2013/ [31] http://www.anime-expo.org/assets/2014/05/Anime-Expo-Sponsorship-Prospectus.pdf [32] http://www.qsrmagazine.com/news/7-eleven-introduces-energy-slurpees
  • 21. A1 AGE RESPONSES % ETHNICITY RESPONSE % 18-24 YEARS OLD 261 100% WHITE 102 39% ASIAN 54 21% LOCATIONS RESPONSES % AFRICAN AMERICAN 9 3% CALIFORNIA 233 89% HISPANIC 80 31% NEW YORK 13 5% OTHER 16 6% OTHER 15 6% TOTAL: 261 100% GENDER RESPONSES % HOW MUCH WORK? RESPONSES % MALE 100 38% FULL-TIME JOB 43 17% FEMALE 159 61% PART-TIME JOB 130 51% PREFER NOT TO SAY 2 1% NOT WORKING 83 32% TOTAL: 261 100% TOTAL: 256 100% PURCHASE LOCATIONS RESPONSES % HOW MUCH SCHOOL? RESPONSES % 1. GROCERY STORES 83 53% FULL-TIME STUDENT 204 80% 2. CONVENIENCE STORES 44 28% PART-TIME STUDENT 16 6% 3. CLUB STORES 11 7% NOT IN SCHOOL 36 14% 4. DRUG STORE 7 5% TOTAL: 256 100% 5. VENDING MACHINES 6 4% 6. OTHER 5 3% TOTAL: 156 100% APPENDIX A: Primary Research For vitaminwater‟s primary research, we conducted an online survey, a blind taste survey, and a label survey to get into the minds of our target consumers. We were able to receive 261 responses within the age group of 18-24 years old for our online survey. For our blind taste test, we were able to receive 172 responses within the age group of 18-29 years old. For our label survey, we were able to collect 286 responses within the designated age group. The objectives of these surveys were to find out what Millennials look for in their enhanced flavored water beverage. A1: Online Survey We used Qualtrics to collect and analyze our online survey. We found out what attributes Millennials care for in an enhanced water beverage. We gained knowledge on the frequencies of use for vitaminwaters and our competitors. We also learned the activities that our target market likes to participate in. The goal of this survey was to gain insights about how our target market feels about enhanced water beverages and vitaminwater. PARTICIPATED WITHIN LAST MONTH RESPONSES % LIVE CONCERT 93 36% LIVE SPORTS EVENT 61 24% NIGHTCLUBS / BARS 126 49% OUTDOOR ACTIVITIES 159 62% VIDEO GAMES 127 50% MOVIES 135 53% GYM 163 64% TOTAL: 256 100% A1.1: Charts and Graphs
  • 22. A2 38% 53% 65% 69% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% MALE % FEMALE % % of Male and Female that never tried vitaminwater vitaminwater base vitaminwater zero ATTRIBUTE RATINGS OF FLAVORED WATER IMPORTANCE BASE ZERO 1. TASTE 4.67 4.02 4.19 2. HYDRATION 4.38 4.18 4.00 3. HEALTHY 4.10 3.35 3.75 4. VITAMINS/ELECTROLYTES 3.78 3.82 3.76 5. ALL NATURAL 3.72 3.02 3.12 6. FLAVOR VARIETY 3.47 4.02 4.19 7. LOW CALORIES 3.23 3.14 4.09 8. AROMA 2.98 3.38 3.43 9. LABEL/PACKACKING 2.83 3.35 3.52 10. COLOR 2.68 3.80 3.82 11. FUN/CREATIVE 2.59 3.20 3.51 N=245 N=51 N=67
  • 23. A3 43% 24% 19% 15% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% Powerade zero: Mixed Berry Kirland's VitaRain: Acai Blueberry Pomegranate lifewater zero: Acai Blueberry vitaminwater zero: XXX ZERO CALORIE DRINK: BEST FLAVOR A2: Blind Taste Survey For our vitaminwater blind taste survey, there were parameters set in place to ensure the integrity of our test. Like the online survey, we used Qualtrics to conduct this test. The blind taste tests were held on various college campuses and some of the supplies we have used were: Cups, measuring cups, ice, cooler, table, iPads, and smartphones. We conducted this test with 3-4 people every time. One person was in charge of refilling the drinks without revealing the drinks. Two people were in charge of inputting data of our blind taste test participants. During this test, we tested full calorie drinks with vitaminwater XXX base and tested zero calorie drinks with vitaminwater XXX zero. The full calorie drinks we have used to compare were: Cranberry Raspberry PACt, Cool blue Gatorade, Mountain Berry Powerade. The zero calorie drinks we have used to compare were: Acai blueberry lifewater, mixed berry Powerade zero, acai blueberry pomegranate VitaRain. The objective of this test was to gain insight on the senses of our target consumers; we wanted data on end-user‟s preference in color, smell, and taste. As shown in the graph to the right, 15% of the respondents like the taste of vitaminwater zero XXX and 26% of the respondents thought that vitaminwater zero XXX had the worst taste compared with the rest of the beverages. Therefore, we recommend vitaminwater to change its zero product sweeter, stevia, to monk fruit to upgrade its taste.
  • 25. A5 A3: Label Survey For our vitaminwater label survey, we were able to have 286 participants. The purpose of the survey was to know what label best appealed to the Millennial generation. According to our survey results, 49% of the participants chose label A as their top choice.
  • 26. A6 APPENDIX B: Marketing Graphics B1: createyourfate Website B2: createyourfate Facebook
  • 27. A7 B3: createyourfate Instagram B4: createyourfate Twitter
  • 28. A8 B5: Hulu Ad B6: YouTube Ad
  • 29. A9 B7: Pandora Ad B8: Spotify Ad
  • 30. A10 APPENDIX C: creativespace Floor Plan Entrance/ Employee Offices Music Space Lounge Graphics Space Fashion/Art/Meeting Space
  • 32. A12
  • 33. A13 APPENDIX E: Sales Forecast 2015 vitaminwater base sales vitaminwater zero sales Q1 $118,257,729 $46,886,996 Q2 $118,257,729 $46,886,996 Q3 $118,257,729 $46,886,996 Q4 $119,440,306 $47,355,865 Total: $474,213,493 $188,016,853.00 GRAND TOTAL: $662,230,346.29 2016 Q1 $121,231,911 $48,066,202.98 Q2 $123,050,390 $48,787,196.02 Q3 $124,896,145.39 $49,519,003.96 Q4 $126,769,587.57 $50,261,789.02 Total: $495,948,033.39 $196,634,191.97 GRAND TOTAL: $692,582,225.37 2017 Q1 $128,290,822.62 $50,864,930.49 Q2 $129,830,312.49 $51,475,309.65 Q3 $131,388,276.24 $52,093,013.37 Q4 $132,964,935.56 $52,718,129.53 Total: $522,474,346.92 $207,151,383.04 GRAND TOTAL: $729,625,729.96
  • 34. A14 APPENDIX: End Notes [1] http://www.businessweek.com/articles/2012-04-27/breaking-into-the-energy-drink-business [2] http://www.graphicdesignblog.org/famous-brands-rebranding-cost [3] http://fashionista.com/2014/02/new-york-fashion-week-cost [4] http://www.howmuchisit.org/slush-machine-cost/ [5] http://fashionista.com/2013/04/coachella-business [6] http://latrending.com/how-much-does-it-cost-to-make-edc-possible/ [7] http://www.anime-expo.org/assets/2014/05/Anime-Expo-Sponsorship-Prospectus.pdf [8] https://get.uber.com/drive-uber/inland- empire/p2p/?utm_source=AdWords_NonBrand&utm_campaign=search|mobile|drivers|inland-empire|country-1|city- 228228|keyword_Lyft|matchtype_b|ad_63126308440|campaign_competitor|group_lyft%3Ebroad&utm_medium=keni d_66ee903e-10ce-0688-1adc-000018a6a7ea&gclid=CjwKEAiAh7WkBRCQj-_ [9] http://webdesign.about.com/od/beforeyoustartawebsite/a/how-much-should-a-web-design-cost.htm [10] http://localmarketingideas.com/how-much-does-radio-advertising-cost/ [11] http://digiday.com/publishers/what-online-ads-really-cost/ [12] http://www.gaebler.com/Rolling+Stone-magazine-advertising-costs++30492 [13] http://smallbusiness.chron.com/much-magazine-advertising-cost-56136.html [14] http://www.gaebler.com/Newspaper-Advertising-Costs.htm [15] http://www.nationwideadvertising.com/new30daydail.html [16] http://www.bluelinemedia.com/transit-advertising#rates [17] http://www.webstaurantstore.com/avantco-sc-80-countertop-display-refrigerator-with-glass-door-2-7-cu-ft- 115v/360SC80.html [18] http://www.stickeryou.com/2/about-stickeryou/product-quality-wall-decals [19] http://www.shindigz.com/party/personalized-beer-bottle-standee/pgp/12szksbeer [20] http://www.loopnet.com/New-York/Brooklyn_Office-Space-For-Lease/ [21] http://m.recordingconnection.com/reference-library/recording-entrepreneurs/how-much-does-a-music-studio- cost-2-0611/ [22] https://www.google.com/search?client=ms-android- verizon&sboxchip=Shopping&biw=360&bih=301&tbm=shop&ei=MV2OVPqqDsX8oATDroGABw&q=how+much+do+ commercial+3d+printers+cost&oq=how+much+do+commercial+3d+printers+cost&gs_l=mobile-gws- serp.3...33592.59959.0.61449.43.30.0.13.13.1.660.6709.0j15j14j5-1.30.0.ehm_loc...0...1c.1.60.mobile-gws- serp..14.29.4083.3.nJZTlTb792w#spd=981068684060960902 [23] http://www.qualitylogoproducts.com/custom-bags/cinch-up-back-pack.htm?ribbonName=sale
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