The M2AK 2017 Snapple Campaign

The M2AK 2017 Snapple Campaign - Media Plan - Madison Gottlieb│Kate Hamel│Anna Schuster│Megan Wallstedt Table of Contents Executive Summary Snapple, owned by the Dr Pepper Snapple Group, produces ready-to-drink (RTD) tea and juice Executive Summary........................2 beverages that are distributed nationally. The brand’s roots are found in the northeast (the “Heartland”) and has since expanded across America. Nationally, Snapple has strong brand awareness, but heavy product consumption primarily takes place in the Heartland. Snapple is Company History...........................3 looking to improve sales and product consumption in the Heartland, but more importantly, in the non-Heartland regions of the United States. Competitive Analysis.....................4 Snapple has two goals for this campaign. First, Snapple aims to grow purchase frequency within the Heartland by increasing Heartland heavy user rates from 9 times to 10 times per year. Second, Snapple wants to grow purchase frequency within the non-Heartland by increasing SWOT Analysis...............................5 non-Heartland light user buying rate from 1 time to 3 times per year. With a budget of $50 million, M2AK has created a strategic media plan that is designed to reach Snapple’s target audience throughout their daily schedule in order to keep the product on top of the consumer’s Target Audience..........................6-7 mind to drive sales. Snapple’s target audience of Millennials ages 18-49 years old (with a bullseye of 30) are busy, Timing Considerations..................8 on-the-go young professionals, so the planned media will intercept these individuals at key points throughout their day, such as while they drive to work. Media Objectives............................9 M2AK focused on a combination of traditional and nontraditional media. With the proliferation of social media and digital culture, it is important for Snapple’s campaign to have synergy both Overall Strategy..............................9 online and offline. 2M AK’s objective was to reach the target audience through a wide spectrum of media to give the illusion that Snapple has a large national presence. Primarily, M2AK focused on platforms where Millennials spend large amounts of time yet have the smallest ability to tune Traditional Media...................10-12 out advertising. The platforms include social media, video streaming sites and music streaming programs. Non-Traditional Media..........13-17 When analyzing the competition, M2AK narrowed in on the RTD tea category. Within this market, the main competitors are the Arizona Beverage Company, Unilever and Nestle SA, which each produce their own brand of RTD tea. Important considerations when accounting Media Budget................................18 for these major players are their unique market share and distribution networks, as well as their advertising share of voice. However, since Snapple is part of the Dr Pepper Snapple Group, it has a strong market presence and large advertising budget as well. Snapple’s quirky, fun brand image Media Flowchart..........................19 and unique tea drinking experience are assets within the marketplace that help Snapple stand apart from competitors. Conclusion.....................................20 The media chosen by M2AK are all based on thorough research of the RTD tea category and Millennials’ media viewing habits. We believe that this media plan will help Snapple achieve its Appendix..................................21-26 objectives of increasing awareness and sales throughout the entire United States. 1 2 Company History Competitive Analysis Snapple was established in New York City in 1972 when Leonard Marsh, Hyman Golden and Snapple, a sector of the Dr Pepper Snapple Group Inc., is part of the RTD tea industry. The Arnold Greenburg (all health store owners) (Dr Pepper Snapple Group) decided to create an major competitors that Snapple faces in this industry are Arizona Beverage Company, Unilever all-natural drink that would appeal to New Yorkers. When Snapple initially launched, it began by and Nestle SA (Phillips). selling “Snappy Apple”, an all-natural apple juice, to specialized health stores (Case study). Its first beverage was sold from a storefront in Brooklyn (Snapple Museum of Best Stuff on Earth). The RTD tea category is a subset of the beverage industry, which is dominated by juice, soda, sports drinks and flavored water. According to IBISWorld, the RTD tea industry is expected to The company initially sold its product through grow by 8.9 percent annually and predicted to be an $8.6 billion industry by 2019. Demand for word-of-mouth, door-to-door advertising and this category is anticipated to increase for several reasons. First, IBISWorld anticipates an distributors. Since the start, Snapple has remained a increase in the healthy eating index, which would positively impact RTD tea sales. Second, favorite among New Yorkers, but has expanded its convenience store demand is predicted to increase. Currently, prepackaged beverages account product line of numerous tea and juice beverages by for 15 percent of convenience store profits. Finally, per capita soft drink consumption is selling on a national level and serving millions across predicted to decrease, which opens up the opportunity for RTD tea expansion. the globe (Snapple Case Study). The Arizona Beverage Company, founded in 1992, currently holds 17.3 percent of the industry Originally, the company that created Snapple was market share and is the top producer of RTD teas in the U.S. (Phillips). Its line of bottled teas called The Unadulterated Food Corporation, but it come in various flavors appealing to consumers, making it a primary competitor of Snapple later become Snapple Beverage Corporation (Arizona Beverages). The Arizona Beverage Company also creates drink products such as juice, (Dr Pepper Snapple Group). Cadbury Schweppes, tea blends and sports drinks, and has a market for its products in countries outside of the U.S. the owner of the Dr Pepper/Seven Up Inc., (Phillips). Arizona Beverage Company’s competitive advantage is that it sells tall cans of tea for purchased Snapple Beverage Group in 2000. just $0.99. Additionally, in 2006, Cadbury Schweppes gained full ownership of the Dr Pepper/Seven Up Inc. bottling Unilever, established in 1929, currently holds 15.6 percent of industry market share and has 252 and distribution network, which gave the company manufacturing facilities across the globe. The tea products associated with Unilever are full access to the “largest independent bottler in produced by the brands Brisk and Lipton, which are both primary competitors of Snapple. As the U.S.” (Dr Pepper Snapple Group). Now known an established company with more than 400 brands within its portfolio, Unilever is dedicated as the Dr Pepper Snapple Group, DPSG is the one to sustainable living and creating products that improve lives (Our vision). This gives Unilever an of the “leading producers of flavored beverages in emotional advantage with consumers whose values with those of the company. Unilever North America and the Caribbean” (Dr Pepper Snapple Group). partnered with Pepsi to create the Pepsi-Lipton partnership, which gives Unilever access to Pepsi’s bottling and distribution network (Phillips). This network gives Unilever an advantage by The Snapple brand, under DPSG, is now well known to consumers as a “quirky, fun and unique distributing its products in more stores at a lower cost. brand” (Snapple Case Study) that sells a wide variety of beverages. Presently, its headquarters are located near Dallas, Texas (Snapple Case Study). Nestle SA is one of the leading food manufacturers across the globe and operates in over 150 countries, but only holds 6.7 percent of industry market share. Nestle, originally known in the RTD tea industry for its Nestea brand, added Sweet Tea and Tradewinds teas to its portfolio when it acquired Sweet Leaf Tea Company in 2011 (Phillips). Having multiple brands within the RTD tea category gives Nestle a greater marketing opportunity and increases competition for Snapple. These major companies create strong competition within the RTD tea marketplace for Snapple due to their established presence and growth. However, Snapple now has a great opportunity to increase brand presence within the non-Heartland and continue to have strong consumer 3 loyalty within the Heartland and increase sales nationwide. 4 SWOT Analysis Target Audience The members of the target audience for Snapple are Millennials ranging from ages 18-49 years Strength old with a bullseye target age of 30 years old. In order to reach a demographic that is busy, on ○ Snapple’s brand image is well-known. the go, working and looking for a tasty, refreshing beverage; the target audience is best divided ○ Branding is unique: quirky, fun persona, glass bottle, snapple facts, sound of caps. into two groups: The Heartland and the non-Heartland. ○ Wide variety of products. The most loyal Snapple users reside in the Heartland. These heavy-usage Snapple consumers ○ All natural, wholesome content “from the best stuff on Earth.” can be found in the North East, which includes cities such as New York City, Boston, ○ Alternative to soda. Philadelphia, Buffalo, Baltimore, Hartford, Syracuse, Albany and Washington D.C. (Snapple Case Study). ○ Access to Dr Pepper’s network and connection to its image. The rest of the country is considered the non-Heartland. In this section of the United States, Snapple has low brand-awareness and

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