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FINAL BOOK GROUP 8 Mary Hager Cameron Lippert Emily Matusek Livia Sanders Lucas Simes TABLE of CONTENTS

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FINAL BOOK GROUP 8 Mary Hager Cameron Lippert Emily Matusek Livia Sanders Lucas Simes TABLE of CONTENTS COLACOLA XX FINAL BOOK GROUP 8 Mary Hager Cameron Lippert Emily Matusek Livia Sanders Lucas Simes TABLE OF CONTENTS BRAND COMPASS 1 CLIENT BACKGROUND 2 CATEGORY 3 CULTURE 4 CONSUMER 5 COMPETITION 7 POSITIONING 8 CREATIVE BRIEF 9 INTERNAL BRAND TOOL 10 CONSUMER CONTACT PLAN 11 EVALUATION RESEARCH 12 APPENDIX C A T EG ORY ADV 284 • GROUP 8 • COLA X BRAND COMPASS N CO ITIO NS ET UM P E M Naturally “The \\ R O C Sweetened Sidekick” \ Cola They are a lovable, relatable, average group; they are just (365 Cola, Zeevia, Coke Life, etc.) ]]] not the protagonist Carbonated Drinking cola doesn’t have to Soft Drink/ feel as guilty as it C Cola used to. A E T E R G T U ORY CUL ADV 284 • GROUP 8 • COLA X 1 CLIENT BACKGROUND Cola X is a new cola entering the market. It has the same memorable features as big name colas, but uses a natural sweetener instead of chemicals or high fructose corn syrup. Because Cola X has yet to be released, it has neither brand awareness nor consideration in a market dominated by Coca-Cola and Pepsi. In launching Cola X, we hope to gain brand awareness to encourage trial. These goals will be achieved through our messaging, which will highlight our core brand value --- customers deserve a slightly healthier alternative. Key Features: Crisp taste Carbonation Carmel color 12 oz. can packaging Natural sweetener ADV 284 • GROUP 8 • COLA X 2 CATEGORY Cola falls under the carbonated soft drink (CSD) category umbrella. There are three main facts to understand the CSD market. The first is that there has been a steady decline in sales within the overall soft drink market for the last 30 years. 2016 revealed the lowest point for cola consumption since 1985. This decline is most often associated with consumers looking for healthier alternatives such as juice or flavored water. Diet cola brands have taken the hardest hit; Diet Coke and Diet Pepsi consumption have fallen over 5%. Over the next five years diet carbonated soft drink sales are expected to decline by over 11% (Sisel, 2016). From this, we can conclude that current needs of cola consumers are not being met. Secondly, consumers have become increasingly aware of artificial sweeteners, such as aspartame, a carcinogenic commonly found in diet colas, and high fructose corn syrup in regular colas (Kell, 2016). Consumption of high fructose corn syrup has been linked to negative health effects such as diabetes, heart disease, weight gain, and fatty liver disease (Parker, 2010). This has led to an increase in demand for naturally sweetened and low-calorie sweetened sodas (Worland, 2014). A group of consumers was asked what benefits their ideal soda would have and 73% responded with added health benefits. The most popular responses were added vitamins and minerals, caffeine, and zero calories (Sisel, 2016). Finally, the cola industry has taken on a new barrier from government taxation and regulation. In October 2016, the World Health Organization advised nations to tax soda in an effort to curb the global obesity epidemic (Aubrey, 2016). Despite the controversial recommendation, early taxation efforts in Berkeley, CA indicated a 20% drop in soda consumption (Aubrey, 2016). The recent social shift away from cola has led to the development of new beverage offerings, including flavored sparkling water, liquid water enhancers, and freshly pressed juices (Taylor, 2016). As the CSD category begins to grow, customers are experiencing an overwhelming number of choices. ADV 284 • GROUP 8 • COLA X 3 CULTURE Culture concerning carbonated soft drink consumption can be diluted to health/ingredients, more options in the market, and increased tension between government regulation and a greater disparity between the price of naturally sweetened cola and craft cola brands. Cheat Days. A 2016 study from The Journal of Consumer Psychology found that incorporating a cheat day into a wellness regime may actually help with weight loss and encourage more balanced living (Khazan, 2016). Participants who incorporated a cheat day once a week, approximately a 2,700 calorie splurge day, were better able to maintain their motivation and self control during the rest of the week. With that, cheat days are becoming increasingly popular in many diet and workout plans. New Nutritional Labeling. In May 2016, the FDA released a new nutritional label, meant to reinforce research in nutrition and draw attention to calories and serving sizes in processed foods. The FDA is also requiring companies to include information on the added sugars in their products, apart from naturally derived sugars. The design was specially geared for consumers interested in restricting added sugars from their diet without eliminating natural sugars. Increased amount of health and wellness trends. Instagram trainers, YouTube vloggers, and social media influencers alike have gained cult-like followings, using hashtags like #fitspiration and #whole30challenge to encourage users to lead healthier lives. Workouts such as Crossfit and OrangeTheory have also gained popularity because of their high intensity workouts and impressive body transformation testimonials. Naturally Sweetened Cola. While diet cola is the most presented option for people looking to consume cola in a “healthier” way, the inclusion of artificial sweeteners turns many consumers away from the zero-calorie drink (Sisel, 2016). No, Main competitors are striving to present their product in a healthier way. A small step towards healthier drinks made by market dominators would be Pepsi’s “Pepsi Throwback” and “Coca Cola Life” Though there is no evidence of these drinks as being healthier, consumers view them as less processed because of presence of “real” sugar (Waxman, 2012). ADV 284 • GROUP 8 • COLA X 4 CONSUMER Secondary Research Support Cola is the most popular sub-category within the CSD category and Both Coca- Cola and Pepsi hold top positions on American soft drink sales charts (Caffeine Informer, 2014); Coca-Cola Company’s namesake cola, Coca-Cola, as well as their healthier marketed derivative, Diet Coke, take the top two positions. Pepsi- Cola holds position 3, and occasionally trades places with Diet Coke (Caffeine Informer, 2014). Millions of Americans buy a cola every day; because of this, most adults in the US have consumed a cola product in their lifetime (Ferdman, 2015). It’s also important to note that consumers have become more guilty due to the correlation between their soda consumption and its negative health effects. This has contributed greatly to the declining soda consumption trend (Steinmetz, 2015). After searching through our sources for a clear-cut consumer, we realized that our audience couldn’t be boiled down to a couple of key demographics. Instead our consumer was better identified as “the sidekick.” Sidekick Sam - Sam has been an avid cola consumer for most of their life but the recent news on artificial sweeteners have made him feel guilty about daily cola consumption - Sam’s friends have been cutting out cola but they have had difficulty cutting cold turkey - Sam is looking for a cola product that still has the familiar taste that they have grown up with - Sam enjoys cola with comfort foods that have greasy/ salty flavors Primary Research Rationale We conducted two methods of primary research: survey and focus group. For both research methods, our goal was to determine how cola was currently being viewed by consumers in terms of packaging, taste, and value. We also wanted to gain perspective on how young cola drinkers have altered their habits based on new health recommendations. Overall, our survey confirmed hypotheses regarding soda consumption trends, while our focus group led to more fruitful insights on the target consumer and their lifestyle. Survey: We decided to create a survey with the hope of reaching a wide range of people from a variety of backgrounds. We needed to find quantitative ADV 284 • GROUP 8 • COLA X 5 data about how cola is being consumed in 2016, compared to times of higher consumption. Focus Group: Our focus group was our opportunity to learn more about consumer behavior and general interest in cola through more qualitative methods. We also conducted taste tests to see if participants could differentiate between name brand and generic cola. Primary Research Summary Survey: Our survey on cola reached 302 people, ranging from college students to retirees. We began the survey by questioning respondents preferred beverage and further questioned how frequently respondents drink soda. One of the greatest findings was that consumers prefer regular, full calorie cola rather than diet or zero-calorie cola. Additionally, when questioning respondents on why they had lowered soda consumption, the top two responses were because of unhealthy sugar content and the negative health effects associated with soda consumption. Focus Group: Our focus group consisted of eight college students with a variety of majors. When we asked if participants drank cola, the room was split. Those who did not drink cola argued: cola had no nutritional value, diet cola contained carcinogens, and the drink was cheap, which enabled an addictive habit. In regards to the overall theme of cola, participants frequently used words like, “happy,” “classic,” and “light-hearted.” Participants also referenced how cola is best enjoyed with salty or fatty foods, like pizza, hamburgers, and movie theater popcorn. In our taste test, participants could taste the difference between brand name, generic, and craft cola, but were unsuccessful in differentiating Coke and
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