2017 Media Plan & Recommendations

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2017 Media Plan & Recommendations 2017 MEDIA PLAN & RECOMMENDATIONS KATE MCNICHOL | RYAN PINA | BRENT ROYER | DANA SILVER EXECUTIVE SUMMARY Background Owned by Pepsi, IZZE all-natural, carbonated fruit juice is a unique offering in a crowded U.S. carbonated beverage market. Available in bottles and cans, and sold as single-servings or in four- packs, IZZE is typically available in higher-end grocery stores and in smaller food-service establishments that offer single-serve beverages. Within the carbonated beverage category, IZZE is one of the most expensive, mainly due to its exclusive use of natural ingredients. The negative perceptions of its high price point is an obstacle IZZE must overcome to grow brand awareness, and ultimately increase demand and sales. Objectives Over the course of a one year media campaign, IZZE is attempting to increase national brand awareness from 12% to 22%. In addition, IZZE wants its customers to become loyalists, who share their experiences with, and passion for the product both in-person and through social media networks. Target Audience The recommended IZZE media plan will broadly target both working men and women aged 25-44 with household incomes exceeding $100,000. The spot plan will specifically target this demo in markets indexing high for carbonated juice drinkers that also experience high average summer temperatures, which help in driving seasonal beverage sales. Media Budget IZZE will provide a total campaign budget of $23 million dollars to cover costs of both national and spot media ($21,540,800), as well as an additional nationwide promotional campaign ($1,459,200). The media spend has been allocated across national (77.7%) and spot (22.3%) media. Spot marketing will take place in 8 of the top 20 U.S. markets, reaching an estimated 21.6% of households. In addition, A media reserve for national ($470,000) and spot ($240,000) will be withheld to cover the cost of unexpected media opportunities that may arise during the course of the campaign. Campaign Details The IZZE campaign will run from April through September, increasing brand awareness during the months leading up to summer, when temperatures are high and beverage purchases spike. A heavy rotation of national, brand image media early in the campaign is designed to increase awareness, followed by a shift to spot media to hit the target demographic with a more call-to-action, transactional messaging. Reach and frequency will be highest early in the campaign, peaking at 82/4.0, then tapering to a low of 70/3.6 during the heavier spot rotation period in the later months. 1 EXECUTIVE SUMMARY Media Mix While in the market since 2003, IZZE overall brand awareness is low. In order to combat this the early campaign schedule will include heavier rotations of national media including network and cable television, network radio and magazines. During the summer months, dollars will shift to support a spot media rotation heavy in radio and outdoor advertising. Digital is also a key component of the campaign, supported by general and targeted ad networks, video networks and social media. Sales Promotion Everyone needs a break once in awhile, and IZZE believes they have just the right stuff to provide a refreshing moment to jumpstart the rest of your day. This contest will invite consumers to post photos of themselves and others encouraging usage of IZZE products to various social networks using the hashtag, #IZZEBUSY, and thereby entering them in the IZZEBUSY contest. Posts will be aggregated through a central website, and the top four posts as voted by fans will be selected as grand prize winners, awarding contestants with an all-expenses-paid, one-week trip to Italy, the birthplace of the European style of carbonated fruit soda that inspired IZZE. Ten additional posts will be selected as runner-ups, and will receive a one-year supply of IZZE beverages. 2 INTRODUCITON THE IZZE INITIATIVE The IZZE brand and accompanying products have been on the market for over ten years. With a declining slope in terms of sales and interest, IZZE must act fast to get their products into the minds of consumers and into the hands of influencers. This media plan outlines a campaign built for success and features initiatives that will position IZZE to be a top player in the sparkling juice category. Every recommendation is rooted deep in research, and is optimized to appeal to the target audience we feel will best-fit IZZE. As media best practices and digital trends are ever changing, IZZE will need to consistently measure and adjust their overall marketing and advertising strategy. That being said, the media recommendations in this strategic plan span a six-month period. During this period, heavy messaging and visual graphic art will be implemented to reach consumers in top- areas that fit the target mindset. After six months, it is recommended that IZZE evaluate the success of the suggested initiatives to best plan for future advertising. This is not a plan intended to have a hard stop, but instead, represent a slice of an on-going advertising effort that will continue to expand and evolve within the ever-changing media landscape so that IZZE can grow and see results now, and for decades to come. 3 SITUATIONAL ANALYSIS THE 4 C’s CONSUMER Familiarity with IZZE carbonated juice drinks is low within our target demographic, and in general with carbonated juice/beverage drinkers. The proposed IZZE campaign will reach many, if not most of our potential customers at the introductory stage. As of early 2014, the brand was only known in 3 percent of households across America, despite joining PepsiCo’s portfolio in 2006. (Miller, 2015) COST In the highly competitive carbonated fruit juice segment, IZZE is considered to have a premium price point. IZZE comes in two basic serving sizes–an 8.4 fl oz can, and a 12 fl oz glass bottle. While both bottles and cans can be purchased individually, they are often sold in single flavor packs, or variety packs of four, twelve, or twenty-four. A four-pack of bottles has an average selling price of $4.99, while a four-pack of cans come in at a slightly lower average selling price of $3.99. They are available at most grocery and convenience store locations, as well as select restaurants, such as Chipotle. CONVENIENCE IZZE carbonated juice could be categorized as a speciality product, as it is currently only available in limited quantities at higher-end, small grocers and other small food and deli-type establishments. It is competing for shelf-space in a crowded carbonated juice and flavored carbonated water category. And, as one of the highest-priced beverages in its categories, it is more difficult to find at the larger grocery chains, which typically stock and promote products with discounted pricing. COMMUNICATION IZZE’s communication with customers is heavily focused on reaching them through digital and social channels. In addition to its own primary web site, their online presence includes branded pages on top social platforms such as Facebook (246,220 followers), Twitter (3,077 followers), Instagram (5,647), and Pinterest (1,500). Its most recent social media promotion, #FriendsdayNight, celebrates “friends-night-in” and spreads ideas for incorporating IZZE into parties and social events. Sales during the campaign year increased 17% and generated more than 4 million impressions across social media during the promotional period. (Miller 2015) 4 SITUATIONAL ANALYSIS SWOT ANALYSIS STRENGTHS WEAKNESS organic, trendy, owned by nutrition facts, expensive, PepsiCo.,brand recognition, low in saturated beverage market, ad calorie, high fruit juice content, clutter OPPORTUNITIES THREATS health conscious society, quality- healthier alternatives, lower-cost over-cost mindset, unique position competition within the industry 5 COMPETITIVE ANALYSIS IZZE LaCroix San Pellegrino Dry Sparkling • Multiple flavors • Multiple Flavors • Limited flavors • Multiple flavors • Three varieties of • Three Varieties of • Has long, rich • Not carbonated drinks (IZZE, Esque, Flavors: (LaCroix, tradition (originated • Sold in many Fortified) Cúrate, NiCola) in 1899) locations nationwide • All Natural • No calories • Low in calories • Low in calories • Sold nationwide in • All-natural, non- • Traditional citrus multiple grocers and GMO flavors stores • Low in calories COMPETITIVE ADVANTAGE IZZE is carbonated beverage containing organic ingredients, that could be considered a healthier alternative to traditional carbonated soft-drinks. These sparkling beverages contain no refined sugars, caffeine, or preservatives giving IZZE the potential to be a leader among juice and soda drinkers looking for a quality product that will quench their thirst without breaking from their healthy lifestyles. IZZE POSITIONING IZZE is a unique, carbonated fruit-juice beverage which lands at the intersection of the carbonated beverage, sparkling water, and fruit juice categories. It shares attributes across these several product categories, thus making it difficult to strategically position it against other players in the industry. 6 BRAND HISTORY THE IZZE STORY IZZE traces its origins to two friends, Todd Woloson & Greg Stroh, who wished to venture into the beverage industry together. Their mission was to create a beverage that encompassed European- inspired taste, high-quality ingredients, and a “do-good” approach. Both Woloson and Stroh saw an enormous opportunity to bring a chic-yet-altruistic beverage to the United States, with flavors inclusive of crisp citrus fruits. They started doing so in 2003, with the debut of their first product, just one year after they started. The company was named after Woloson’s eldest daughter, Isabelle. As the company began to take off and IZZE products hit the market, Woloson and Stroh had little money for advertising expenditures. The pair put their faith in word-of-mouth and social network advertising. While the word-of-mouth approach is typically very risky, it offers high reward.
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