1 Agency Philosophy
Creativus is an agency based on completing objectives in a timely manner while keeping true to our client’s specific goals. Our work is reflective of the dedicated employees who are passionate about excelling in what we do. Whether we are rebranding, creating brand awareness, or working on social media campaigns, a group dynamic combined with a fun atmosphere allow us to excel. Our focus on combining our experience with a complete integrated marketing program, allows Creativus to be a marketing industry leader.
Executive Summary
SoBe Lifewater is a subsidiary of the well-known Pepsi brand that has not quite made a name for itself yet. In an industry with annual revenue of 27.3 billion dollars, there is plenty of room to grow for this young brand. This campaign aims to increase not only SoBe Lifewater’s market share, but also brand awareness nationwide through a variety of integrated marketing techniques.
• The major target market for SoBe Lifewater is women ages 18-35. The Creativus Agency
chose this target audience because we feel the pervious target market of men ages 18-35
did not match with the overall look and feel of the product.
• This campaign will begin June 2013 to May 2014. The campaign consists of various
tactics including broadcast, public relations, sales promotions, print advertising, and
social media (See Appendices). Each of these media outlets will be strategically executed
at varied time periods throughout the calendar year.
2 • The campaign objectives will consist of:
o Changing appearance of the product in order to be more aesthetically pleasing to
women.
o Increase brand awareness for SoBe Lifewater using several media vehicles such
as television, social media, and magazines (See Appendices).
o Communicate benefits of the product to target market
o Become the preferred flavored water choice for women ages 18-35
• The overall theme of our campaign is that the product is a healthy and ideal option for all
types of women no matter how different they may be. No matter who consumers are or
what they do in life, SoBe Lifewater will fit into each unique lifestyle, which is why we
have chosen to revive the previous slogan “SoBe Yourself.”
• The budget will be divided amongst the various media outlets we will use to promote our
campaign. Mass media will consist of 50% of the budget, print media will consist of
30%, sales promotion will consist of 10%, social media will consist of 5% and the final
5% will consist of public relations expenses (See Appendices).
• Our evaluation processes will vary depending on the media outlet utilized. We will
monitor sales, website views, social media interactions, and analyze broadcast ratings.
3 REVIEW OF THE MARKETING PLAN
Industry Background
SoBe History
South Beach Beverage Company, known as SoBe, was founded in 1996. In 2000, SoBe was purchased by PepsiCo Inc., whose current market share is 38.8%. SoBe has estimated annual sales of $6.8 million (“PepsiCo, Inc.”). They produce exotic teas, fruit juices, elixirs, and vitamin-enhanced water. For Lifewater, the focus of this report, their target market is health conscious consumers. Their natural sweetener and added vitamins and nutrients target these consumers. Their marketing efforts have historically focused on the millennial generation
(“SoBe Our Story”).
In terms of the beverage industry, SoBe Lifewater falls into the juice industry, along with functional drinks, ready-to-drink coffees and teas, fruit juices, and flavored water. Functional drinks refer to sports drinks and energy drinks (See Appendix O). This industry is currently in the growth stage with an annual growth of 6.4% from 2007 to 2012 and annual revenue of $27.3 billion (“PepsoiCo, Inc.”).
Elixir and Juice Industry
Because the purchase of drinks in this industry is discretionary, an increase in disposable income in the United States will positively affect this industry; disposable income is expected to slowly increase. These drinks are normally impulse purchases and consumers are more likely to spend the money when they have higher budgets to do so. One environmental factor affecting
4 this industry is the weather. Studies have shown that when the US has a particularly hot and humid summer, demand for these drinks increases (Jacobsen).
Within the industry, energy drinks and fruit juices are facing scrutiny and sales have begun to decline. The energy drink trend seems to be fizzling out and fruit juices with high sugar content have been publicly criticized. The recent push by political players like Michelle Obama to cut sugary drinks may have a negative effect on the purchase of fruit juices, energy drinks, and others. SoBe Lifewater may actually be able to benefit from this trend because their drinks are naturally sweetened and many options contain zero calories (“Juice Production in the US”).
CSD’s (carbonated soft drinks) are one of the main product competitors and one trend affecting the industry is the growing awareness of making health-conscious decisions.
Consumers are beginning to give up their soft drink consumption in favor of healthier options, like flavored water and sports drinks. There is also a very new trend of specialty drinks, like relaxation drinks and coconut water. SoBe jumped on this trend right away and currently offers three coconut water varieties (“Juice Production in the US”).
Product Description
Sobe Lifewater Product
The product that Creativus Agency is focusing on rebranding is the Lifewater vitamin enhanced series produced by SoBe. In 2001, PepsiCo bought out SoBe and found itself revitalizing the brand in an effort to complete with Coca-Cola’s rising market share in the wake of its popular Vitamin Water series in 2007 (Stanford). SoBe Lifewater is a vitamin-enhanced beverage that features antioxidants, herbal ingredients, and no artificial sweeteners. Targeted at
5 millennia’s, Lifewater focuses on the health conscious consumer and now produces a zero calorie series as well as a coconut water series (“PepsiCo, Inc.”).
Strategies for differentiation have included dropping prices in 2010 to aid consumers during the recession (Stanford). This turned out to be successful and allowed Lifewater to expand to retail outlets such as Target and Wal-Mart. During the 2008 Super Bowl, SoBe launched a successful ad campaign featuring Naomi Campbell dancing with the brands iconic lizards. The original commercial has received over 5 million YouTube views to date and created buzz throughout the Internet. Lifewater saw its market share grow 6.1% in the first half of 2008 and volume increase 167% when compared to 2007 sales figures (Zmuda).
SoBe Lifewater Campaigns
Lifewater’s latest campaigns have focused on promoting the coconut water series and feature models painted in skin suits. With one model appearing in Sports Illustrated, SoBe has seen growth in both the social media world as well in sales. Facebook fans held around 300,000 in 2012 and have grown to nearly 800,000 to date in 2013. One strength Lifewater has created is the national push away from soft drinks. With obesity in America on the rise, consumers are looking back into drinking water but are still looking for flavor. With Lifewater boasting a series of zero calorie and zero sugar beverages, they have found themselves in a growing market
(Kats).
This campaign will focus on targeting the healthy consumer who seeks a refreshing, natural, and sugar free beverage. The new campaign will target men and women 18-35 who live an active lifestyle and are conscious of calories and sugar content. SoBe’s low calorie and sugar
6 content will be compared to industry leading brands, pointing out how these brands have large
amounts of sugar. The brand image utilizes a lizard to push an eco-friendly brand and shows
natural fruit that is used in the production of the beverage. SoBe also has rebranded the image of
the lizard to appear more natural so that consumers can associate a natural image with the natural
beverages (Zmuda).
Positioning and Perceptual Map
Health-Conscious
Low Sugar High Content Sugar Content
Not Health-Conscious
7
Strengths:
- Lifewater is sweetened naturally
- Cheaper price allows them to be carried in big-box retail stores
- Not a soft drink (trend away from soft drinks in America)
-Growing social media presence
-Branding: lizards and bottle designs
-Estimated annual sales of 6.8 million
-PepsiCo has largest share of juice industry 38%
Weaknesses:
- Flavored waters has the smallest share of juice industry (See Appendix O)
- Misguided target market, should be aimed at women due to trends in health consciousness
- Bottle design is not eco-friendly, too busy, weird to hold
Opportunities:
- Use the lizard to push eco-friendly campaign
-Retarget to women
-Get into drink machines at elementary schools (push to get rid of soda/sugar)
- Show commercials featuring the actual ingredients (Kashi style)
Threats:
- Vitamin Water (zero calorie line)
- Push towards zero calories
8 Buyer Analysis
User Profile
SoBe Lifewater utilizes target segmentation by means of demographics and psychographics to market their differentiated products to the ultimate target consumer. SoBe also uses demographics to target specific age groups and a specific generation while they use psychographics to promote the attitudes and lifestyles of consumers. The company’s target customers are people born between the years of 1980 and 1995, otherwise known to marketers as
Gen-Y’s or Millennia’s (Zmuda).
SoBe has been considered a trendy brand ever since it was established in the early 1990s, and the company wants to connect with and aim marketing efforts to those who are just as trendy as the brand itself. This market was raised in a time when the brand and products were launched, meaning they grew up drinking the soft-drink alternative. Furthermore, in most school systems, soft-drinks are no longer allowed to be sold but SoBe beverages are, which gives the company opportunity to offer their products in schools. Sales to school children have helped the company grow their customer base and those children have grown up and have become loyal to the brand
(Stanford).
SoBe is a New Age drink that target large and different variety of groups in the market.
The products are lifestyle juice elixirs that are mainly for health-conscious individuals who are looking for healthy alternatives to carbonated sodas. Because of the healthy nutrients SoBe offers in its products, Baby Boomers purchase the product to reap the benefits instead of turning to pills and powders for a nutritional boost. They prefer to drink fitness waters and juices such as SoBe
9 Lifewater that provide minerals, electrolytes, and vitamins that can be enjoyed in a drink form
(Kats).
Buying Decision Process
For SoBe Lifewater, consumer’s buying behavior is characterized by limited problem solving. The marketer may create a problem for the consumer or the consumer experiences problem recognition, maybe he or she is thirsty or wants a beverage that is not a soft drink.
Because of that problem recognition, consumers will go to the store and purchase SoBe
Lifewater, their needs will be satisfied, and the process will begin again. The price of the product ranges from about $1-$2, therefore the price may positively influence buying behavior because it is a cheap price for health and happiness. SoBe Lifewater is a low involvement purchase because the process entails minimal effort and consideration for consumers since it does not significantly affect lifestyles and because the investment is low. Lifewater is habitually purchased by some SoBe customers, so the decision requires little effort (Kats).
Who Buys the Product
SoBe reaches millions of their 18-29 year old target customers in the United States and
Canada, enough to make revenue of $1 Billion in 2010. The typical consumer is approximately a
22 year old bachelor male who grew up drinking the elixir. However others, such as young women and Baby Boomers, buy and enjoy the juice drink for its nutrients Drinks can be easily purchased at many different convenience and grocery stores. SoBe products can be bought in bulk of cases or individually (“South Beach Beverage Company”).
10 Who Influences the Purchase Decision
SoBe has reinvented their advertising from a mass-market TV and print approach to focusing more attention on an interactive and Internet approach. SoBe wants to engage customers in the most effective way and the company has conducted market research to do so.
Marketers are adding new digital and interactive media including Web sites, viral video, blogs, social networks, to target individuals or small communities of consumers rather than the masses.
By creating ads from material exposed online, SoBe can see what customers want and it allows them to react differently and influences purchase decisions (Zmuda).
Who Makes the Decision and Decision Criteria
The ultimate consumer is the individual who makes the purchase decision based on what messages the marketer communicates with the consumer. The consumer can plan the purchase or the purchase can be made on impulse at the point of sale. Those loyal to the brand and the products make their decisions based on previous experiences and good feelings received from consuming the product. Impulse purchases may be made from advertisements remembered from cognition or word of mouth marketing. The consumer behavior pattern is determined by many factors that the marketer imposes on the consumer (Zmuda).
Marketing Goals
The main marketing goal will be to completely make over any current, or past marketing campaigns that SoBe Lifewater may have had. The new target market will come from a new, natural, organic type of lifestyle. In doing all of these things, sales volume will increase because of the new positioning plan. Creativus hopes to distribute the improved product in new locations that will better reach the new target market. PepsiCo owns SoBe Lifewater, and already holds the
11 majority of the market share, so in that sense SoBe will remain constant, if does not increase.
With the new changes that will be implemented, including the design, placement, promotion campaign; and so on it is expected to see an increase on total revenue, profit, and ROI.
Promotional Campaign Analysis
SoBe Lifewater currently lacks a strong promotional campaign. The company has utilized a number of campaign concepts such as “SoBe Yourself” “Flavors with Benefits” and “No
Fear.” The past promotions, however were erratic and inconsistent. They have created a number of sponsored sweepstakes, and at one point offered free SoBe tote bags to consumers who purchased ten or more bottles in select grocery stores. For the most part, however, the company sticks to BoGo (buy one get one) coupons. The promotional mix consists of direct mail, print advertisements, and a small amount of social media. Adding a few other strategies to their promotional mix, such as guerilla marketing or trying to tap into some media publicity, would do the company a world of good (See Appendices).
LifeWater is focused on the health-appeal and low-calorie benefits it offers. Focusing on a casual comfortable tone, the message they harp on is relatively strong, and easy to build upon.
“Taking vitamins just got a whole lot tastier.” In addition, SoBe’s current use of social media flooding is a wise and incredibly strong choice. They’re very active and prevalent on Facebook and Twitter, however branching out to Pinterest and Instagram might also be a beneficial choice.
12 Direct Competitors
A direct competitor is a company which sells essentially the same product. In terms of
SoBe Lifewater, a direct competitor product would be one that sells a fruity, flavored water.
Many of the products contain zero calories and added vitamins and nutrients.
Coco Libre Coconut Water
Introduction and Positioning
SoBe Lifewater has just recently dipped their feet into the new coconut water trend, releasing three flavors in 2012. Coconut water seems to be all over the grocery store shelves now and one brand that seems to be widely distributed is Coco Libre Organic Coconut Water. Coco
Libre is owned by Maverick Brands and was founded in 2011. One of the main benefits they stress about their coconut water is that it is organic, unlike many of their competitors. The brand positions itself by attributes, focusing on the health benefits of the product. Their coconut water has no added sugar, no fat, no cholesterol, and are gluten-free. It also contains five electrolytes and more potassium than a banana (“Coco Libre”).
Current Marketing Efforts
Due to the fact that this brand is so new, there is very limited information on their advertising, public relations, and financials. Their Facebook page contains a lot of postings based on recipes and uses for their product, such as smoothies and champagne punch. From looking through their photos, you can see that Albertson’s and Whole Foods are two of their main distributors. They also have a famous celebrity fan, Jennie Garth, who has been spotted with
Coco Libre many times and has claimed it as a favorite in an US Weekly article. Overall, Coco
Libre is not doing any large-scale marketing.
13 Target Market and Segmentation
“Coconut water is one of the fastest growing beverage categories in the US and UK
(estimated to reach $1bn soon) due to its natural hydrating qualities, great taste and nutritional benefits, not to mention the large number” (Arnold). There are now more than 250 companies selling products containing coconut water. According to an article by BrandRepublic, the product category is marketed towards consumers ages 25-29 and 80% of coconut water drinkers are women. There are five specific consumer groups that coconut water is aimed at (Arnold):
1. Affluent, middle class consumers that can afford organic foods
2. The energy drink market, specifically athletes who believe in coconut water’s positive
effects
3. Health-conscious consumers who are attracted to the product because of its zero fat, low
cholesterol benefits
4. Fad followers
5. Consumers from the Tropics or whose heritage is from the Tropics
Coco Libre is different from SoBe Lifewater’s product because is it one hundred percent coconut water (“Coco Libre”). Therefore, it is a direct competitor for Sobe. When consumers are making a choice between different flavored waters, and more specifically coconut waters, these two brands are both likely to be in their consideration set.
Fruit 20
Fruit 20 started back in 1999 and was bought out by Sunny Delight in 2008. They offer 8 different flavored waters which all feature 0 calories and 0 carbohydrates (Our Waters). They promote their water using these advantages as well as the fact none of their beverages contain
14 any sugar. They directly compete with SoBe Lifewater when it comes to flavored water selection.
Branding, Social Media, and Current Marketing
They consider themselves to be the first flavored water to hit shelves and recently underwent a re-branding strategy with the help of an outside agency (Enlighten). Their website uses increased user engagement, a friendly interface, and creates an easy way to find out information regarding their beverage. This has positioned them as a leader in the flavored water market and their strategies are backed with the brand loyalty associated with Sunny Delight.
Fruit20 has utilized social media to further strengthen their brand and currently has over 37,000
Facebook fans and actively updates content. The website also features a calendar which allows customers to see upcoming philanthropic events as well as samplings around the country.
However, brands such as Vitamin water and Dasani flavored water have severely hurt
Fruit20’s market share starting in 2006. Kraft, the parent company of Sunny Delight, spent nearly $23 million in advertising media in 2005 on Fruit20 and has still been seeing a decrease in market share (Thompson).
Overall, Fruit20 is a direct competitor to SoBe Lifewater and relies on its zero calorie and zero sugar attributes in order to maintain a competitive advantage. Larger brands have moved into the market and continue to chip away at the market, however Fruit20 has recognized this and is currently working to re-brand and connect with customers on a social level. Lifewater should not feel threatened by any of Fruit 20’s strengths.
15 Activate
Target Marketing and Positioning
Activate is a flavored water that stores its flavor and vitamins in the product’s cap until just before the user drinks it. Activate has segmented their target market by both demographic and psychographic methods. Partnerships with athletes will segment athletes and fitness enthusiasts while their general target market is simply young people who enjoy living a healthy lifestyle (BevNET). Activate’s target market is similar to that of Lifewater as it is targeted to young people who are concerned with living a healthy lifestyle, and being environmentally friendly.
Activate has positioned themselves in the juice market by providing a competitive advantage by preserving the freshness of the vitamins until just before the consumer breaks the cap open. They have always positioned themselves as being an environmentally friendly company, as their bottles are made with 100% post-consumer recycled plastic (BevNET). This not only supports the company’s commitment to sustainability, but it also reduces waste.
Current Marketing and Advertising
Activate utilizes various methods of advertising and marketing tools. One method they use is outdoor advertising. They have several billboards that flaunt lines such as; “Sugar is not a vitamin. Want fresh vitamins? We twist the cap, not the truth. Our cap is full of vitamins, others are just full of cap” (BevNET). They also have bus signage on double-decker buses, wild postings and health club ads with coupons that lead consumers to places Activate is sold. Radio is another method used. Activate has played their message on both Clear Channel and CBS networks. Social Media, of course, is yet another method they use. Digital campaigns have been
16 launched across several social sites like Facebook, Google, and YouTube. Next they hope to partner with NFL quarterbacks Phillip Rivers and Josh Freeman (BevNET).
Using slogans such as “Sugar is not a vitamin” and “Want fresh vitamins? We twist the cap, not the truth,” will definitely catch consumers’ attention or at least the consumers in their target audience. By using messages such as these they are using humor to communicate a more serious message that will appeal to that young audience who are concerned with keeping up on the latest fitness and health trends. These messages also do a good job of stating their competitive advantage over their competitors while maintaining a witty, light atmosphere.
To be such a new brand, Activate has done a great job of including several types of marketing strategies. They plan on exploring more bold initiatives in additional markets in the near future. They have done a good thing by easing their way into the market using partnerships, outdoor advertising and social media. I think because they are establishing this base, once they do venture into mass media it will benefit them greatly. There is no public information about their advertising or marketing budget.
Activate will likely be extremely successful in the near future. Between the product design, recent marketing decisions, and real health benefits, there really is nothing to lose in trying this product. The marketing they have already done leads me to believe that their team is extremely clever, and understands what direction the company wants to go in. This could potentially present a problem for companies, like SoBe Lifewater, that do not have a stable or consistent marketing campaign.
17 Vitaminwater
Vitaminwater was first created in 1996 by J. Darius Bikoff when he consumed a vitamin
C wafer and chased it with water due to intense thirst and low energy. The mix of the two inspired him to Bikoff to concoct the enhanced hydration, nutrient added beverage that is now known as Vitaminwater. The new drink was first launched in New York City in 2000, which is coincidentally less than a year after the SoBe Lifewater was launched, changing the beverage industry forever (“Glaceau Vitaminwater”).
Target Market, Segmentation, and Positioning
Vitaminwater beverages are marketed to people of all ages, occupations, and lifestyles who want to enjoy a tasty drink while also getting a vitamin boost. The main targeted consumer is women between the age of 15-25, single, and typically in college. Outside of the target market, most consumers who consumer Vitaminwater are health conscious and love the beverage for its delicious fruit flavors that provide vitamins that they do not receive elsewhere. Vitaminwater is
SoBe Lifewater’s largest competitor, and much of the segmentation is the same except for the target market of SoBe being a 22 year old male. Both companies essentially target the same customers and compete for much of the market share (Dell).
Vitaminwater strategically positions the company’s beverages to fit the target market’s lifestyle with three main words to describe the product: light, trendy, and fresh. The position of being light is expressed in the title of the beverage because it is portrayed to be as light as water, not heavy like a soda. The packaging also represents a light position because of the light colors of the different labels and the various drink flavors. When consumers think of Vitaminwater, the word trendy may come to mind because of the cool celebrities who endorse it. Trendy is also a fit because of the sleek and colorful labels with humorous facts that are appreciated by
18 consumers. Vitaminwater has spent energy on being perceived as fresh due to its refreshing taste and natural ingredients. The brand itself maintains a young and innovative appearance with new flavors and colors constantly released (Zmuda). The only available information regarding the advertising and marketing budget for Coca-Cola, the owner of Vitaminwater and did not find that pertinent for this section.
Public Relations, Advertising, and Social Media
During the 2012 Summer Olympics, Vitaminwater made an attempt to boost its international presence with a new campaign to drive trial and recruitment overseas and increase international awareness. Vitaminwater was launched oversees five years ago, starting in trendy cities and targeting specific neighborhoods and retailers, then gradually reaching smaller areas.
To get the company’s name known, Glaceau Tasting Vehicles roamed the streets of London setting up interactive games with advertising on them. This campaign is the most recent information found (Zmuda).
When consumers visit the Vitaminwater website, they will see a bottle of the product and a message stating, “we’re off taking some personal time. Where are we? Well, that’s personal.
Don’t take it personally, just catch us on Facebook”. If customers follow the directions and are directed to the Facebook social media page for the company, they will see witty and genius comments updated by the company daily. The entire interaction seems like a marketing ploy to get more people on the Facebook page where marketers can communicate more efficiently with the consumers online (“Glaceau Vitaminwater”).
Vitaminwater is trying to interact with more and more consumers on social media websites like Facebook, Twitter, LinkedIn and YouTube because that is where consumers are spending most of their online time. The company posts status updates regarding current events,
19 the weather, new flavors, news, and charitable organizations they are involved in. The Facebook page has over 3.7 billion likes and over 15,000 talking about it. For now, social media seems to be the most successful method to interact with consumers.
The Vitaminwater brand has grown exponentially since its creation in 1996 and it is now a trendy company that has a lot to offer consumers. The company will continue to grow with all of the health benefits it offers to the target market. Interacting with consumers on a personal level through social media is a smart strategy and it is interesting to see where the company will be in five years from now. Vitamin water is one of the largest direct competitors to SoBe
Lifewater.
Indirect Competitors
An indirect competitor is a product that can be a substitute and is in the same indusstry.
In terms of SoBe Lifewater, an indirect competitor would be a drink in the “juice” industry, like a juice, tea, coffee, sports or energy drink. These drinks are not flavored water, like SoBe
Lifewater is, but could be chosen in place of water.
Naked Juice
Naked Juice Company was founded in 1983 and is a subsidiary of PepsiCo Inc. Naked
Juice is an indirect competitor of Sobe Lifewater because it is not flavored water but still a healthy drink choice for consumers. The term “naked” refers to the drinks composition of no added sugar, artificial flavors, or preservatives. The company positions their product based on its health attributes (Naked Juice Company). There is a pound of fruit in every bottle and their drinks are spiked with proteins, probiotics, vitamins, and herbs.
20 Target Market
The typical consumers that Naked targets are those between the ages of 25-35 that are health-conscious, active, and balanced in their food choices (Wong). They even have a prototypical consumer named Zoey, who embodies the brand and it’s personality. Through a series of focus groups, Naked found that their Core Users personify the product as “independent, healthy, low-maintenance, adventurous, passionate, and laid-back” (“Getting Naked”).
Current Advertising, Marketing and Public Relations
Naked launched its first large-scale advertising campaign in 2010. The campaign focuses on the juice’s health benefits and was launched through digital and print media. Naked has used slogans such as “This is fruit’s higher purpose” and “Live Naked” (Wong). In addition to this advertising campaign, Naked has also done a lot of grassroots initiatives. They sent brand ambassadors to over 200 college campuses to promote the brand and do sampling at many events and venues across the country. In terms of message strategies, Brad Armistead, marketing director for Naked Juice, states that the company is “all about transparency in our communication” (Wong). They want to communicate the health benefits of the product, and all advertisements, packaging, and promotional materials focus on their all-natural promise (Wong).
One of Naked’s major public relations initiatives was launched in 2009 and called “Naked
Message in a Bottle”. To promote their 100% post-consumer recycled bottle, the Facebook-based program encouraged consumers to virtually pass bottles of Naked along to their friends. For every bottle passed, Naked donated five cents to the Keep American Beautiful organization
(Steinberg).
Naked has estimated annual sales of $21.9 million but their advertising budget is not available (Naked Juice Company). Overall, Naked Juice is a well-know brand that is continually
21 growing. Although it is not a type of flavored water like Sobe Lifewater, it is a fruit drink that is enhanced with vitamins and nutrients. For a consumer looking for a healthy drink, this is definitely a choice they may consider and is therefore an indirect competitor of Sobe Lifewater.
Neuro
Diana Jenkins created Neuro Drinks around 2007 with the help of nutritionists and a goal of creating a drink that “uses the power of science to ignite the body’s reaction to all the ways consumers live out loud”(Neuro). The brand offers 7 different types of flavored drinks, which differ in the functional area they seek to improve. Neuro drinks are an indirect competitor to
Lifewater, as they do not compete directly with the flavored water industry but still could be seen as a hydration alternative.
Positioning and Social Media
The brand is known for its bottle design and the fact that each bottle is 100% recyclable.
Each beverage only contains 35 calories and provides benefits ranging from sleep to weight loss.
Since Neuro Drinks offer many benefits, they compete with similar brands including Redbull,
Monster Energy, Marley’s Mellow Mood, and any beverage that offers a life-enhancing attribute.
Branding, image, and online presence are all strengths of the Neuro Drink brand. They have nearly 70,000 Facebook fans and are established on Twitter and Youtube. However, many online blogs have started looking into the actual health benefits of the drinks and have found them to be healthy in small doses, but can become detrimental to one’s health in large quantities
(Koco).
Overall, Neuro has a strong online presence and continues to grow in the market for beverages with additional benefits. With a strong online persona in charge, the brand will
22 continue to grow, but must be careful of how they are portrayed in health terms. Lifewater may see some competition when it comes to beverage selection and health benefits, but will not be directly impacted by the Neuro’s growth.
Gatorade
Target Market, Segmentation, and Positioning
Gatorade, a widely known sports drink, was founded in 1965 and is owned by Coca-Cola.
Their sales were 2.6 Billion in 2008, and they held 49% market share. There isn’t public information on their advertising budget. Using demographics Gatorade targets pre-adults, male or female, single and of the social class ABC. Using lifestyle segmentation they target athletes, sports enthusiasts, and active individuals. In regards to behavioral segmentation, they hope individuals use this before or after physical activity, to quench thirst and to prevent dehydration.
Like others in their category, Gatorade targets young athletes and health conscious individuals.
Gatorade has become such a popular beverage that you can really find it anywhere. They have taken to the “ultimate sports drink” position by partnering with athletes like Dwayne Wade and Michael Jordan. The target audience sees Gatorade as being able to enhance their physical capabilities and keeping them hydrated and energetic (“Gatorade Marketing Plan”. Aside from partnering with famous athletes, you see Gatorade everywhere. They use commercials, billboards, magazines, newspapers, coupons, social media, sports league sponsorship, etc. Really any tool you think of, Gatorade has most likely been there, and done that.
23 Messaging and Current Marketing
Although Gatorade claims to be extremely healthy and good for you, it can be a bit misleading. There is a lot of sugar, and various ingredients that aren’t necessarily what athletes should be putting into their bodies. However, the idea of replenishing athletes after a game, or activity is a good message that has seemed to work for them. They label some bottles with slogans such as “Be Tough,” “No Excuses,” or a giant “G” (“Gatorade Marketing Plan”).
Messages like this are smart moves Gatorade has taken to really back their message of being the ultimate sports beverage.
With such an established brand, Gatorade really just needs to maintain their current status. Their use of mass media, outdoor media, print, endorsements, and partnerships all contribute to their success. If Gatorade can continue to build on their current media relationships and campaigns they should continue to hold the top spot in their market.
There is not much to say about a company that has already established such a presence in their market. They are clearly a top dog in their category. They do not present too much competition for SoBe Lifewater as they are slightly different target audiences. Gatorade does not offer the same health benefits that Lifewater does due to the high sugar content and lack of vitamins.
Snapple
Target Market and Positioning
Snapple is targeted to health conscious consumers who have a modern perspective on current society. The age ranges from young children, teenagers, and youth like adults. Snapple is
24 an alternative to carbonated beverages and they were a pioneer for their industry. The beverage is also targeted to consumers who lead busy lifestyles and want a drink on the go (Chan).
When Snapple markets its beverage to consumers, the company wants them to think of the most important aspect they have to offer, which is the highly advertised “The Best Stuff on
Earth” slogan. Snapple has been utilizing this motto since the company started over thirty years ago. Snapple also offers real facts on the inside of the caps on each bottle of Snapple beverage sold. The company offers real facts because they produce their drinks with real fruit and they want consumers to associate the two ideas (“Snapple”).
Sales Promotions and Current Advertising
The only information found was regarding Dr. Pepper Snapple, Snapple’s current owner but nothing provided advertising budgets for Snapple alone. The current advertising program consists of social media, print media, broadcast media, cable media, Internet marketing, cell phone marketing, billboards and commercials (See Appendices). Sales promotions entail coupons, trade promotions, and sales force promotions. Snapple sponsors some sporting, art, entertainment and school events. The company also uses public relations and publicity directly targeted to internal employees and external consumers (“Snapple”).
Snapple’s current message strategy includes taglines like “100 Natural”, “100% Juiced”, or the most popular “Made from the Best Stuff on Earth”. To convey that message, Snapple uses experience to “seize the moment”, sensuality to explain the smooth taste and fun to express the
“pure escape” of drinking a Snapple. The company also uses its brand image of being a health- conscious beverage to meet nutritional guidelines (Chan).
Snapple has been in the health-conscious juice industry the longest and they have been able to contract with many schools to sell their products in the public school system. However,
25 the target market is too broadly defined and it is not segmented enough. The company is an indirect competitor to SoBe Lifewater because of the target market selection and due to the fact that they offer many flavors like SoBe.
IMC OBJECTIVES & STRATEGIES
Campaign Objectives
1. Change the bottle
Due to our ultimate marketing goals of rebranding and completely redirecting our targeting towards women, we have decided to redesign the SoBe Lifewater bottle (See Appendix
M). The current packaging is too wide around to be easily gripped, it’s bulky in regards to the amount of plastic used, and the label covers too much of the bottle rendering it near impossible to get a look at the drink inside.
We’ve tossed around a few ideas of changing the shape of the bottle to something more compact, and possibly square for more efficient shipping and a more attractive look. If we’re re-targeting to women, we need a bottle that will fit that market. Currently the bottle is too hard to grip and is a strange shape. Creativus would also like to cut down on the plastic used by a good bit, and try to use recycled plastics to promote “green” views.
In addition Creativus would like to cut down on the size of the current label, as well as change its design. We love the SoBe lizard, and he’s the brand’s peripheral cue, so we’ll hold onto him, but the rest of the label is far too busy. By cutting down the label size to cover only a center strip of the bottle, we not only cut down on our plastic usage, but it would also allow consumers to easily view the product inside. As noticed by our group, colorful drinks attract the eye, so showing off the vivid colors of SoBe Lifewater could bring in more sales.
26 2. Retarget towards women
The current target market for SoBe Lifewater is individuals born between the years of
1980 and 1995, otherwise known to marketers as Gen-Y’s or Millennia’s. The main target audience, however, is the 22 year old male bachelor who grew up drinking the traditional SoBe beverages and wants something more modern and healthier (“South Beach Beverage
Company”). That specific target market has earned the company high profits in the past, but to become more competitive with similar drinks on the market, SoBe must position Lifewater as a lifestyle. Men simply are not as health-conscious as women and they are more attracted to sport drinks such as Gatorade or Powerade (Zmuda).
The rejuvenated SoBe Lifewater will be targeted to health-conscious women between the ages of 18-30 who seek a refreshing, natural, and sugar free beverage. The new target market will consist of women on the go, who lead active lifestyles, work long hours, and do not have time to go to the gym and eat healthy. Sobe Lifewater will be part of their lifestyle because it as easy as grabbing a cold Lifewater out of the fridge and taking it with them while on the go (See
Appendix G-K). Lifewater acts as a supplement of healthy B vitamins that the target market may not consume due to busy schedules. Consistently choosing Lifewater over soda, juice, and alcohol will lead women to drink better, eat cleaner, and ultimately feel better about themselves.
B vitamins are proven to provide the human body with energy, which means SoBe Lifewater will invigorate the women who drink the beverage and helps women accomplish more (“South Beach
Beverage Company”).
Since SoBe is a trendy brand, the company also wants to aim marketing efforts to consumers who are just as fashionable as the brand itself (See Appendix K). Young, professional, stylish women have the power to influence other consumers in their buying
27 behavior. If a normal consumer views a chic woman enjoying one of Sobe Lifewater’s many flavors, then he or she will attribute style with the beverage and want to purchase Lifewater. The new target market segment growing as more and more young women graduate college and join the workforce. SoBe wants a target market that has potential to grow therefore brand awareness, revenues, and profits also grow (Staford).
3. Build brand awareness through events
There are several events that we believe would SoBe Lifewater should either sponsor, or become heavily involved in. Because we are targeting to women, targeting events involved with
Susan G Komen and the Multiple Sclerosis Society which are both primarily women-related causes, would hit our target market dead on. Attending these runs, and walks would also showcase the attributes of our product in terms of being revitalizing, being flavorful, and quenching thirst. We would like to see a sponsorship form between SoBe and these various events. However, in the beginning we would be happy to be allowed to set up booths, give out
SoBe paraphernalia, and simply have a presence at these events. This will put our product and brand in the minds of our target market.
For those women that are in our target market, but maybe do not have time to be involved in these events, we plan to do the same sort of sponsorships or partnerships at fashion weeks nationwide, salon openings, gallery openings…and so on. We believe that this would truly reach every type of woman in our target audience, thus proving that SoBe Lifewater is perfect for every woman. There are several up and coming fashion weeks nationwide that would be beneficial to be involved in such as Nashville Fashion Week, NOLA Fashion Week, and
Charleston Fashion week. These were all just named fashion weeks to watch out for in Southern
28 Living Magazine. We hope to have the SoBe Lifewater name and logo on the step-and-repeat backdrop, on the gift bags, and have our products offered throughout the various events throughout the week. No matter what sort of events SoBe Lifewater participates in, giving out the product itself will be the best way to really build a loyal customer base.
Aside from these more structured and organized events, guerilla marketing is something we feel could really be effective in getting our new brand image out there. Even things such as taste testing on the streets of urban areas, or spectacles that involve the consumers being able to see our new product would be a great and memorable way to build brand awareness. Attending any large social gatherings such as spring break destinations, concerts, movie premiers, or malls and having booths and signs set up giving out our drink to consumers will get that initial awareness that we need to move forward.
4. Expand social media presence to increase awareness and preference of the
SoBe Lifewater brand among the target audience.
While SoBe does have a social media presence, it isn’t as strong as we would like.
They have 764,000 Facebook followers and over 7,000 Twitter followers. We would like to increase these amounts substantially, especially on Twitter and Instagram (See Appendix D).
SoBe uploads a lot of pictures of Lifewater in different locations and in unique settings, like on a plane, with Mardi Gras accessories, in snow with skis, etc. We think it would benefit SoBe to have more consumer interaction. For example, we could encourage Facebook fans to upload pictures of themselves with their Lifewater bottles. This way it gets the consumers interacting with the product and the brand. Offering a contest for the “best” or “most unique” location would be great as well. For Twitter, we would also like to see more interaction. We would send out
29 tweets encouraging our consumers to “retweet”. If they do this, our tweets will show up on people’s timelines and gain awareness for our product.
SoBe currently does not have a Pinterest page, which has a rapidly growing social media presence. We think a Pinterest page would get the attention of our female audience, which is the new target market for our “SoBe Yourself” campaign. We are targeting women aged 18-35 and 68.2% of Pinterest users are women (Stambor). This is an ideal channel for us to use to gain awareness and preference of consumers. Instagram has 90 million monthly active users, so this is also a great way to reach consumers as well (Greenfield). SoBe can Instagram pictures and also encourage consumers to post pictures of their Lifewater. Both of these social media channels will be very beneficial to this rebranding campaign and will get the attention of our female target audience. Efficiently utilizing social media will be great for Sobe Lifewater because it is a free way to advertise and gain awareness for the brand. Because we want to rebrand Lifewater, we will be spending a lot on traditional media. Social media, if used effectively, can really benefit this campaign and also allow SoBe to personally interact with their consumers.
5. Use traditional media to help convey the SoBe message as well as connect with our new target audience.
As our rebranding strategy expands, so does the need to push our message through traditional channels. SoBe has capitalized on this opportunity in the past by featuring ads in the
Superbowl as well current magazine ads. However, the latest campaigns feature female models with body paint and are the exact opposite of our branding objective of targeting women.
Through a mix of traditional channels and an awareness objective, we plan on expanding the brand.
30 SoBe Lifewater became widely known during their 2008 Superbowl Ad on television and we would continue to push TV as a way to advertise. With the shifted target audience, our ads would most likely be placed on stations which feature a mostly 18-35 female demographic such as E!, Bravo, Oxygen, Food Network, and HGTV (Carter, 2007). Many of these stations also push a healthy lifestyle, which would coincide with our goal of maintain a health conscious alternative to plain water. By advertising on these channels, we could directly reach our audience and create awareness surrounding the new branding strategy.
Another traditional media channel would be featuring our new campaign ads in magazines. Lifewater’s latest ads have been featured in Sports Illustrated Swimsuit edition, however we would be targeting women and therefore push for a primarily female readership
(SoBe Launches, 2012). Magazines such as Cosmopolitan, People, Shape, and Glamour would be perfect candidates for our target demographic (See Appendix A). Another magazine area which we will consider is the health and fitness areas. Since our rebranding will be pushing
Lifewater’s healthy and nutritional benefits, it will be necessary to push our campaign onto the health conscious sector. With the rise of tablet owners, these magazine ads could also be digitally shared across the social media realm and quickly go viral. This would mix traditional and new media successfully with Lifewater being the beneficiary.
Campaign Theme
SoBe Lifewater is currently targeted toward young men, yet we feel the brand should instead be targeted towards women ages 18-35. Therefore, we are choosing to completely rebrand this product. The overall theme of our campaign is that the product is a healthy and ideal option for all types of women, no matter how different they are. Anyone from artists, athletes,
31 busy moms, college students, business women, and everyone in between need hydration and
SoBe Lifewater can fulfill this need. We want to bring back a past SoBe slogan, SoBe Yourself, and integrated it through all marketing channels. SoBe Yourself really captures the point we want to make: that no matter who you are or what you do in life, SoBe Lifewater can fit into your lifestyle.
We plan to position this product based on its attributes as well as the lifestyle it portrays. It is a healthy drink that not only tastes good, but provides the body with essential vitamins and nutrients as well. For women who don’t always have time to make the healthiest choices or get all the vitamins they need, SoBe Lifewater can fill that void and provide the health benefits they are searching for. By showcasing a variety of different women in our advertising and marketing endeavors, we hope to show that SoBe Lifewater can be as diversified as they are.
We feel that by showcasing this product as the “drink of choice” for a wide variety of women, consumers of all types will feel this product is right for them.
The SoBe brand is very well known, but their Lifewater products aren’t typically the drink that consumers associate with the brand name. Through this campaign, we aim to increase awareness and knowledge about Lifewater. We will do this using various media vehicles such as television, magazines, and social media. Unlike the sugary, high-calorie SoBe drinks; Lifewater is healthy, full of vitamins, and a flavorful way to hydrate the body. By communicating these benefits, we hope to not only increase awareness and trial of the product, but to become the flavored water consumers prefer.
As touched on a bit previously, for the logo we do plan on keeping the lizard. This is going to be consumers’ queue in realizing that it is SoBe Lifewater. However, we are brainstorming of ways to illustrate the lizard in a natural way, much like we want to push the all-
32 natural attributes of the drink itself. We also intend to change the label. At the current moment we have a few rough sketches and ideas, but nothing is yet solidified. We believe that if we can get the appearance just right, it will make the drink even more appealing to our target market.
Budget
Lifewater had 239 million in sales last year. The Creativus Agency will allocate our resources according to each advertising method that will be used. 55% of our resources will go towards the mass media efforts. We recommend such a large amount because we feel as though mass media outlets will be the most efficient in reaching a wide variety of women in our target audience. As social media is essentially free we will only allocate 10% of our resources. This
10% will go towards meeting any unexpected social media needs. Because The Creativus
Agency plans on rebranding SoBe Lifewater some of our resources must go towards that. 25% of our resources will be directed towards that rebranding effort. For any additional fees that our agency may have not thought of we will allocate 10% of our resources.
Creative Strategy Statement
The advertising objectives are to increase awareness of the SoBe Lifewater extension, and to expand the target audience to extend the reach. In order to more effectively expand
SoBe’s market reach and for it to fit more cohesively with the product image, the target audience needs to be re-directed towards women ages 18-35, rather than males 21 - 35. In addition,will
the advertising will persuade the target audience to choose SoBe Lifewater over similar competitors.
33 Message strategy is focused on communicating the fresh and healthy benefits of the drink with a focus on hydration and vitamin content. SoBe Lifewater is widely accessible, tasty, and has an eclectic variety of flavors which be communicated effectively through the re-worked and re-targeted advertising.
Message Appeals present in the advertisements are meant to evoke the feelings of convenience, and that of pleasure through taste and health benefits.
• Convenience- the product is widely accessible at a variety of retail outlets.
• Pleasure- the product tastes great and makes the consumer feel good about what they’re
drinking.
• Rational- the product has a multitude of vitamins for health benefits
• Diversification- the product can be enjoyed by not only the target market but also many
various market segments
• Feminine- the product’s image and characteristics are congruent with a woman’s
lifestyle.
Execution
A 30 second commercial will be created to appear on networks with a target audience of mostly women such as E!, Lifetime, Bravo, TLC, HGTV, Food Network, Oxygen, as well as the major broadcast networks. The commercial will feature small clips of women in their everyday lives drinking SoBe Lifewater. It will be styled as a ‘slice-of-life’ spot to most accurately showcase the product’s relevance in the everyday life of an active woman.
IMC Mix
• Broadcast - Created for networks with a target audience of mostly women such as E!,
Lifetime, Bravo, TLC, HGTV, Food Network, Oxygen, etc.
34 • Print - Focus on magazines targeted towards women 18 - 35, such as Cosmo, Shape,
Women’s Health, Self, Redbook, etc. (See Appendix A)
• Social media - Utilize platforms such as Twitter, Facebook, Pinterest and Instagram to
increase reach and engagement
• Sales promotion - Coupons/discounts through social media and direct mail.
Specific Media Objectives/Mix
• Geographic Scope-Top 50 Neilsen Television DMA’s (see Appendix L)
• Scheduling Pattern - As seen in appendix E, scheduling for this campaign varies with
each media outlet. Both the print campaign and sales promotion will have continuous
scheduling. Sales promotions will be sent out every two weeks in order to remain in the
consumers’ minds. Also, because social media has the reach and effectiveness that it does
we will have no trouble maintaining social media accounts year round. Print campaign
and public relations pulse throughout the year according to the scheduling of the other
forms of advertising. Because the main campaign is based in the summer season, print
campaign and public relations will take place just before the campaign, at one point
during the campaign, and just after. Broadcast will begin just before summer to introduce
the campaign, and last until just after season to remain fresh in consumers’ minds.
Creativus Agency feels that this scheduling pattern will not only increase awareness of
the product prior to the campaign, but will also pulse throughout the year to remain
current.
35 • Reach and Frequency - Though TV ads remain the most memorable advertising method,
percentages are generally down for actual ad viewing. A Nielson study found that when
ads come on during a show, around 5-7% of the viewing audience will not be seeing the
ad (Tv, 013). This can be due to channel surfing, getting a snack, or just not paying
attention.
This means that for an average show, we will be using a 95% reach interval to calculate
reach and then calculate frequency. Though this may factor in some duplicated
advertising, it is a research-based estimate in order to provide a clear picture of potential
reach and frequency.
TNT
Creativus will base the following number off the average viewing audience for showing
an ad during the hit show, Law and Order (Shelter, 2013).
Law and Order viewing audience: 3,700,000 viewers
Law and Order Reach: 3,515,000 (.95 x 3,700,000)
Law and Order: Suggested Frequency: 3
Other networks: Bravo, E! HGTV, Oxygen
The above calculation metrics will be used to calculate the reach and frequency for each
of the above networks in order to have our ad seen by as many viewers as possible.
36 Sales Promotions Recommendations
• Objectives: Increase the awareness of the Sobe Lifewater brand, and encourage trial of
SoBe Lifewater through coupon/discount distribution.
• Plan/Timing: Implement an extensive social media coupon program at the start of the
campaign. Throughout the year, use a monthly distribution to the top 50 DMA’s for
direct mail.
• Rationale: Consumers are more likely to try the product if (A) they are aware of SoBe
Lifewater and (B) if they get a discounted trial.
• Budget: 10% will be allotted to the sales promotion programs
Social Media Recommendations
• Objectives: Boost consumer communication and involvement, and expand market reach
through social media outlets such as Facebook, Twitter, Pinterest and Instagram.
• Rationale: Social media is far-reaching, interactive, and virtually free. It is an incredibly
effective method in regards to building consumer loyalty and preference
• Strategy/Execution: Create an interactive sweepstakes for consumers to participate in via
‘Pinning’ or ‘Instagraming’ images of themselves drinking Lifewater in exciting and
creative situations
• Budget: No more than 5% of the full market budget needs to be allotted to Social Media
Print Media Recommendations
• Objectives: Spread awareness and brand image through various print media outlets
including magazines ads, direct mail, flyers, and other print mediums.
37 • Plan/Timing: Ongoing magazine print ads in magazines targeted at women such as
Cosmo, Shape, Women’s Health, Self, and Redbook. Monthly direct mail and flyers will
be sent out to subscribers to the website and will serve as reminder advertising.
• Rationale: Magazines are able to reach a huge audience and will be exposing our exact
target audience to the brand. Direct mail and flyers will serve as reminder advertising and
expose further audiences to new branding.
• Budget: 30% of the marketing budget will be slotted for print media.
Broadcast
• Objectives- The objectives of using broadcast media are to reach our target market on a
national level. By using networks that are targeted towards women ages 18-35 we will
reach a broad range of interests and ages.
• Rationale- The rationale behind using such a broad marketing tactic is to reach all of our
target audience all over the country.
• Strategy- Our strategy will be to choose the top 50 cities according to Neilsen DMA’s
(Appendix L) and begin there. Because we have to divide our budget amongst other IMC
strategies we do not want to waste any here by broadcasting in lowly populated areas.
• Budget- We will use 50% of our budget to accomplish the broadcast goals.
Public Relations Recommendations
• Objectives: Generate consumer attention and awareness of SoBe Lifewater through
media placements and special events and provide information to consumers to gain
understanding of the re-branded product.
38 • Strategy/Execution- Positive stories will be implemented into the media via the Internet,
newspaper and magazine articles, and on TV shows to help entice the targeted audience
to try the product.
• Scheduling/Plan- The PR team will constantly release stories and information in many
various media channels to increase and strengthen the company’s brand image.
• Rationale- Consumers are more likely to carry over the positive feelings received from
the messages to the product.
• Budget- Five percent of the entire advertising budget will be allocated to the Public
Relations section of the campaign.
Measurement and Evaluation
Sales Promotions: Measuring the effectiveness of the sales promotions programs will take place prior to the start of the campaign and then bi-weekly for the length of the campaign. The
Creativus team will monitor coupon use and strategically target the top cities in which coupons are used. The team will also monitor downloads of social media coupons on a daily basis. There will also be close monitoring of the success of the POP coupons in grocery and retail outlets (See
Appendix B, C).
Social Media: The results of the effectiveness of the campaign in regards to social media efforts will be recorded daily for the length of the campaign. Monitoring the response by consumers to the ‘tweets’ ‘pins’ and ‘status updates’ of the campaign will be important and will be used to further decide which specific social media mediums prove most effective. In turn the campaign can be more directed towards the furthest reaching platforms to maximize potential profit and customer loyalty (See Appendix D).
39 Print Media: Though harder to measure, there are ways to measure ROI from print ads including subdomain clickthrough rates, measuring performance from specific in-text coupon ads, studying overall marketing mix effectiveness, and even asking customers during checkout where they heard of the product. By evaluating all these parameters, it will provide an overview of well our print media marketing strategy is performing (See Appendix A).
Broadcast- The Creativus team will measure sales in the top 50 DMA’s in which the broadcast will air 60 days prior to airing the commercial. The commercials will air in those geographical areas for the next 60 days. After those 60 days are up we will measure sales again in those same regions. By looking at sales before and after airing the commercial in the same target areas we will state whether or not the sales increased, and if so by how much. This method of evaluating will be effective in showing the Creativus team whether or not the advertisements were effective
(See Appendix G-K).
Public Relations: The effectiveness of the PR efforts will be measured via surveys and consumer reports and reviews. Since consumers are the main target and they interpret the information that the PR team sends into the media, consumer attitude is one of the most important aspects of this function. If the positive attitude of the media messages released by the PR team transfer to the
SoBe Lifewater brand, and consumers consider the product as part of their consideration set, then the campaign is successful (See Appendix F).
40 Budget Breakdown and Overview
Budget of $7,000,000
Allocation:
• Broadcast: $3,500,000 dollars of the budget will be spent on broadcasting efforts. The
campaign begins in March and ends in September. The budget will be divided evenly
between each month, allocating a total of 500,000 dollars a month to broadcast. Ten
different networks have been chosen according to the network’s target audience and price
point. The ten chosen networks are E!, Bravo, HGTV, TLC, Lifetime, Oxygen, Food
Network, TNT, ABC Family, and MTV. The Creativus agency chose ten networks to
focus on because it will enable us to reach a wide variety of our target audience, while
still being able to allocate 50,000 dollars a month per network. By allocating this amount
per month, per network, we will utilize our entire budget, without spending too much.
Print: $2,100,000- Print Media Budget
Cosmo $1,156,440
Cosmo Full page Color Rate(1) $289,110 x 4
Creativus will feature full-page color ad in Cosmo for the months of June, July and April,
May of the following summer. This will directly hit our target audience in the peak
season of our branding (“Cosmopolitan Media Kit”).
41 Shape $374,968
Shape Full page Color Rate (2) $187,484 x 2
Creativus will feature two full-page color ads in Shape for the month of June and the month May. This will hit our target audience right as summer is starting and aid in the rebranding efforts (“Advertising Rates”).
Women’s Health $372,980
Women’s Health full page Color Rate (3) $186,490 x 2
Creativus will feature a full-page color ad in Women’s Health for the month of June and the month of May. This will hit our target audience at the beginning of the season and boost brand awareness for physically fit women (“Women’s Health Advertising Rates”).
Self $190,992
Self Full Page Color Rate (4) $192,992 x 1
Creativus will feature one full-page ad in Self for the month of June. The median age for
Self is at the tail end of our target audience, therefore it is receiving the least amount of our print media budget (“Condé Nast”).
Cosmo 1,156,440
Shape 374,968
Women’s Health 372,980
Self 190.992
Total $2,095,380
42 • Social Media: $350,000- Creativus Agency will charge $6,000 per month for an
extensive social media plan to be implemented and managed. This plan consists of four
main platforms: Facebook, Twitter, Pinterest, and Instagram. The plan will consist of an
average of 3 blog postings a week, ranging from 350-500 words. We will monitor Twitter
for keywords relevant to SoBe Lifewater and gain hundreds of relevant followers per
week. We will post an average of 7-10 tweets per day, and monitor tweets for mentions
about SoBe. We will manage the Facebook page, create weekly creative content, and gain
hundreds of fans. We will promote the SoBe brand daily through Pinterest and post
Instagrams per multiple times per week. This plan will use $72,000. We also plan to
purchase a promoted trend on Twitter at the end of June, which costs $200,000. We will
also sponsor two SoBe Contests throughout the year, allocated $30,000 to each, which
includes promoting the contests and the prize packaged. The remaining $18,000 will be
used to purchase Facebook ads throughout the year.
• Sales Promotion: $700,000(10% of the budget) - We are choosing to use direct mail as
our main method of sales promotion. Direct mail will be distributed bi-weekly for 12
months. This allows $29,166.67 for each round of direct mail (700,000/24 months).
• Public Relations: $350,000 Lifewater is a big client and therefore will be charged an
industry average of $25,000 per month to manage all aspects of public relations
(1). Services will include media relations, spokesperson training, company branding,
thought leadership, public speaking engagements, and special projects (Finke).
43 $25,000 x 12 months = $300,000
This will leave Creativus $50,000 under budget so it can be used for the Opportunity
Buys:
Creativus will reserve $50,000 of the budget as a contingency budget. This will cover
any various opportunity buys that present themselves, allow for give-backs if requested,
and any rate hikes that arise in the budget year. Creativus will stay be on the lookout for
any special-themed magazines, product placement opportunities in documentaries, or
special PR advertising placement in editorials on recent developments. (Such as an article
dealing with nutrition, hydration, or active women)
Conclusion
As we previously stated, our goal in working with SoBe Lifewater is to completely rework their campaign. Instead of targeting men 18-35 we will target women 18-35. We feel as though SoBe is much more appealing to women because of the appearance, flavors, and shape of the bottle. That being said we will change the bottle shape to be more accommodating to women’s hands, decrease the label size so the drink itself is more visible and change the logo to be more aesthetically pleasing and eye-catching. Because we are rebranding we will use several
IMC outlets such as broadcast, print, social media, sales promotion and public relations. By utilizing each one of these tools we feel we can successfully reach all types of women ages 18-
35. We want SoBe Lifewater to be the preferred drink choice for women whether they are into art, music, sports, fashion…etc. This is what inspired us to bring back the campaign “SoBe
44 yourself.” With this campaign we feel as though SoBe Lifewater will appeal to their ultimate target market which will in return increase sales and brand awareness for the client.
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48 Appendix A: Print
49 Appendix B: Direct Mail Sales Promotion
50 Appendix C: Online Sales Promotion
51 Appendix D: Social Media
52 Appendix E: Media Flow Chart
53 Appdendix F: Press Release
Sobe Lifewater Rebrands Product Line
Sobe Lifewater hires Creativus Agency to create an IMC campaign to increase awareness, market share and sales
The South Beach Beverage Company has sought the professional assistance of award winning Creativus Agency to ultimately help SoBe prevail over the company’s biggest competitor, Glaceau’s Vitamin Water. SoBe will be implementing the campaign in early June. The purpose of the campaign is to reach a specific target market: women 18-35 who live active lifestyles.
The beverage will be positioned as a lifestyle product. The former campaign, SoBe Yourself, will once again be implemented. The brand wants to encourage women to be themselves while enjoying a tasty and healthy Lifewater. The company is making many changes with the new campaign. The most significant change is the design of the bottle that will give SoBe the competitive edge while on the shelf at retail stores.
SoBe is and always will be a trendy beverage that is targeted to trendy consumers. SoBe will continue to cater to its previous target market while branching out to a more specific segment. With all of the new changes, SoBe aims to be the number one producer of the flavored water industry. SoBe wants to be number one in the minds of consumers, retailers, and shareholders. SoBe Lifewater is excited to see the future of its image, product and brand.
54 Appendix G: Fitness Storyboard Example
55 Appendix H: Music Storyboard Example
56 Appendix I: Art Storyboard Example
57 Appendix J: Dance Storyboard Example
58 Appendix K: Fashion Storyboard Example
59 Appendix N: New Bottle Design
60 Appendix O : Juice Industry
This chart is a breakdown of the drinks in this product category.
This chart shows the breakdown of the distribution of drinks in the SoBe Lifewater industry.
61