IMC Final Report

IMC Final Report

Client: Snapple School: Salem State University Course: Principles of Advertising Course number: COM 320 - 01 Professor: Hanglong Fu Name of agency: AMS Team members: Abby Stewart, Molly Bovio, and Sean Doane

Table of Contents Agency Philosophy : Page 3 Executive Summary: Page 3 Final Report Industry Background: Page 4 Company Profile: Page 4 Competitive Review: Page 4 Consumer Analysis: Page 5 Marketing Goals: Page 5 IMC Goals and Strategies: Page 6 Creative Strategy Recommendations: Page 6 Media/Promotional Mix Recommendations: Page 6 TV Ad Recommendations: Page 6 Radio Ad Recommendations: Page 8 Magazine Ad Recommendations: Page 9 Social Media Recommendations: Page 10 Direct Marketing/Personal Selling Recommendations: Page 10 Sales Promotion Recommendations: Page 11 Online Marketing Recommendations: Page 11 Campaign Flowchart: Page 12 Measurement and Evaluation: Page 12 Budget Summary: Page 13 Conclusion: Page 13 Appendices: Page 14 References: Page 16

Agency Philosophy The AMS Agency strives to create successful campaigns for each and every single client we work with. We understand that each client has their own unique vision for what they hope their campaign will achieve and we do everything in our power to help their vision become reality. We strive to give a unique perspective while at the same time making sure we stay true to the client’s wants and beliefs.

Executive Summary The time period for this campaign will be from April 1st, 2017 to May 30th, 2017.

Snapple’s target audience is millennials. Millennials are the people between the ages 18 and 35. Millennials make up about 21% of the United States population. Millennials are projected to have greater purchasing power in the market, due to their education as well as their large population number which is 79 million in the United States alone.

The objectives for this campaign are to raise brand awareness, to help set Snapple apart from competitors, and also to spark interest with consumers. We believe by meeting these objectives then Snapple will see a large increase in their sales.

The theme of this campaign will be our client sponsoring a music festival that runs for an entire weekend. We will create advertisements in order to best get the word about it out to our target audience. The message of this campaign will be to have fun and be carefree.

For all of the different techniques and media sources that we will be using to run this campaign we will be spending about 50 million dollars. The kind of budgeting method that we will be using is incremental budgeting. The reason we chose incremental budgeting is because it will be simple to prepare for our campaign and to get the word out about the festival. $10 of the budget will go toward the sales promotions and direct marketing for the campaign. $15 million will go towards more traditional advertising, such as television, magazine, and radio advertisements. The remaining $25 million will go towards new media sources, like social media, because these sources are incredibly popular among our target, and they will be the most likely to see the ads on there.

To evaluate the success of this campaign we be using three different methods.

The first method will be monitoring Snapple’s sales. We will note the amount of sales Snapple has before the start of the campaign and we will compare that amount to the amount of sales Snapple has after our campaign in order to judge the effectiveness of our campaign. Another method we will be using is monitoring the traffic on Snapple’s website. We will record the average of visits on the website before and after the campaign in order to judge whether or not there was an increase. For this method we will be using Google Analytics to measure the traffic on Snapple’s website. The last method we will be using will be a focus group. We are going to bring together between 10 and 12 random members of our target audience in order to ask them a few questions. In this focus group we will be showing them the advertisements we created for the campaign in order to hear their opinions about them.

Final Project Report Industry Background Snapple is in the industry for soft-drink beverages. Lipton, Nestea and Minute Maid are examples of very popular brands that compete against Snapple. A huge trend that is going on within this industry is using ingredients that are healthier because it seems consumers nowadays are focused on improving their health. By including these healthier ingredients the amount of calories within the products will decrease which makes the product more attractive to consumers. This healthy mindset of the public is awesome for Snapple because people are trying to avoid products like soda so instead they will be buying products like Snapple.

Even though Snapple is benefiting from people trying to be healthier, there is also a huge negative effect that comes along with it which is that there are now more competitors within this industry. Other brands are realizing the public wants healthier products so in order to capitalize on that, these brands are creating products using healthier ingredients without carbonation. It is critical for Snapple to find a way to set itself apart from these competitors.

Company Profile Our product Snapple is a brand of popular tea and juice drinks, which is currently owned by Dr. Pepper Snapple Group. Snapple is based in Plano, Texas and was founded in 1972. Snapple originally started out under the name of Unadulterated Food Products. Unadulterated Food Products was one of the first companies in America to produce beverages made from natural ingredients. Snapple was very popular in the ‘80s and ‘90s, but has decreased a lot in popularity in more recent years.

Snapple specializes in iced tea, and competes with other brands that do the same. Snapple’s main competitors are Arizona iced tea, brisk, Lipton, Honest tea, Nestea, and Gold peak. Snapple is easily one of the best when it comes to the iced tea industry.

Competitive Review Three main competitors for Snapple are AriZona iced tea, Lipton iced tea, and Nestea iced tea. These drink brands are some of the top ready-to-drink iced tea brands that are on the market right now.

AriZona iced tea is currently the number one ready-to-drink iced tea brand in the world. In 2014, the company had 20.3% of the market share for ready-to-drink iced teas, which was the largest in the country. In less than 15 years, AriZona has become incredibly popular due to its unique packaging and inexpensive price. It is made with natural ingredients, and has a very fun and unique positioning. It’s advertising and promotion budget is about $12 million, which is not as much as many other competitors.

AriZona uses very little traditional advertising, such as television or magazines, and instead focuses on internet and social media ads and sales promotion.

Lipton iced tea is the number two ready-to-drink iced tea brand. In 2014, it had 11.2% of the total market share for ready-to-drink iced teas. Lipton has been able to consistently be one of the frontrunners in the industry for decades, and it continues to do so. Lipton is available at many stores and is made with antioxidants which are good

for the body. Lipton teas also contain less caffeine than other brands, which can be very beneficial if you don’t want much caffeine in your drink. Lipton wants their consumers to feel good and to enjoy and embrace their lives. Their advertising budget is about $40 million, and is used for television, magazine, internet, and social media. In 2014, they did a campaign with the Muppets called “be more tea”, which encouraged consumers to be more playful and thoughtful. However, Lipton does not offer many flavors, which may be a turn-off to some people.

Nestea is currently the fifth highest popular ready-to-drink iced tea brand. In 2014, it had about 3.3% of the market share, making it one of the lower-sold popular brands for ready-to-drink iced tea. The company began in 1940 and has since grown to become one of the top brands for ready-to-drink iced tea. There are many different flavors of Nestea, which is good if the consumer likes variety. The brand’s positioning is very feel-good, and that it will refresh the consumer when they drink it. Their advertising budget is about $20 million, and they use a combination of magazine ads, television ads, radio ads, and social media ads. They revived a 1970s Nestea campaign called “Nestea plunge”, which shows consumers drinking the iced tea and then falling into a refreshing pool.

Consumer Analysis Snapple’s Main demographic focus is on millennials as well as the Hispanic population. Millennials account for 21% of the United states population. Millennials have also been named as the largest generation, putting the baby boomers generation as a close second. Millennials are still a very young generation of people, the age range of millennials ranges from 18-33 years of age. Millennials are a very technically talented generation, which opens up a big world of opportunities when it comes to marketing Snapple products to them. Millennials have been delving into the world of social media for many years, and it comes as no surprise as millennials were the first to use social media accounts. 88% of millennial are actively using their Facebook on daily basis. 72% of millennials actively use YouTube. 69% use google plus actively, 59% on twitter, followed by 34% on Instagram. Generationally speaking millennial’s are dominating the rest of the other generation’s when it comes to social media usage. This gives brands a big opportunity to do some low cost yet very effective advertising towards the millennial generation.

Marketing Goals The main marketing goal of this campaign is to increase our market share by at least 7%, so we can be ahead of AriZona and Lipton as the leading ready-to-drink iced tea brand. Since AriZona and Lipton are such powerhouses in the industry, it’s important that we find a way to make Snapple stand out from those other two brands so people will want to buy Snapple instead. By targeting millennials, who have a very strong economic power, as they are often the ones who are setting trends, our campaign, if successful, can help to drive up our sales, thus increasing our market share as well. When they are at a convenience store and go up to the fridge to buy an iced tea, we want our customers to choose our brand without a second thought. We want that memory of the festival and the campaign leading up to it to be in the

consumer’s mind so that they can associate our brand with a positive experience that occurred.

IMC Objectives and Strategies The objectives for our campaign are to raise brand awareness, to help set Snapple apart from competitors, and also to spark interest with consumers. By meeting these three objectives, we believe that Snapple’s sales will drastically increase. More specifically, we want to have in increase of purchases from our target group for this campaign, millennials. We want them to see Snapple as a cool brand and to think about this music festival whenever they see a Snapple bottle in a grocery store, vending machine, or convenience store.

Creative Strategy Recommendations Our advertising for this campaign is going to communicate with the public that Snapple is synonymous with a good time. In our advertisements we are informing the public that Snapple is holding a music festival. Musical festivals are a way to bring people together and have them all enjoy one thing, even though they are different races, genders, sexual orientations, etc. So by connecting Snapple with a musical festival we are giving Snapple that carefree and fun personality. Also in some of our advertisements we strategically use celebrity endorsements because doing so helps Snapple acquire trendiness. ● ● ● ● ●

Media/Promotional Mix Recommendations Use magazines that are aimed primarily at readers ages 18-25 (female) and 1830 (male) Have ads on television shows aimed primarily by viewers ages 18-30 (male and female) Have ads on radio stations listened to by primarily viewers ages 18-30 (male and female) Have ads on social media sites commonly used by users 18-30 (male and female) Have Snapple logo all over festival stage and tents

TV Ad Recommendations

(In black and white) Members of Maroon 5 huddled up, in makeup room. Adam is giving pep talk to fellow bandmates before performance

Although visually you see Adam’s lips moving, you don’t hear him speaking.

Instead, you hear intense instrumental music that slowly builds up.

Band breaks the huddle, camera focuses on Adam who slowly walks towards a vanity

Intense instrumental music continuing

Adam picks up a Snapple product which is placed on vanity table and takes a sip.

After doing so, he places Snapple product back to where it was and picks up a guitar pic right next to it

Intense instrumental music continuing

Adam nods his head to his bandmates to show them that he is ready. Bandmates start picking up instruments and heading out the door

Intense instrumental music continuing

Adam and bandmates walking down hallway towards stage, looking straight at camera with serious looks on their faces.

Intense instrumental music continuing

While band is walking down hallway, Adam looks into room on his right and sees Taylor Swift in her makeup room getting ready. They make eye contact and nod to one another.

Intense instrumental music continuing

Camera now is focused on Taylor as she is applying lipstick while looking into her vanity mirror and once she finishes applying the lipstick, she picks up Snapple product and takes a sip. After taking a sip, she places product back on vanity table and she looks at herself in mirror then nods.

Intense instrumental music continuing

Taylor walking down hallway, guitar in hand, looking straight at camera with determined look on her face

Intense instrumental music continuing

Next you see Maroon 5 taking the stage, it is blackened where audience would be

Instrumental music starts to fade

Camera is on the drummer in Maroon 5.

Right when drummer makes contact with drums, instantaneously black and white view transitions into color. You can see the members of audience having a great time and you see entire band rocking out

When the drummer hits the drums, you hear the most exciting part of Maroon 5’s song “Moves like Jagger”

Camera is now on Taylor Swift, who is already rocking out on her own stage

The audio you will hear will be Taylor Swift’s song “Shake it Off”

Camera will then focus on Maroon 5, who are lined up on stage next to each other

In unison, Maroon 5 will say “Come see us and many other great artists perform at Snapple’s Music Festival May 20th – May 22nd”

Taylor Swift will appear and will walk up next to Adam and will playfully place her elbow on his shoulder

After placing Taylor’s elbow on Adam’s shoulder, she will look at camera and say “I’ll see you there”

Above is the storyboard that we created that explains our TV commercial. This commercial will air during shows that are really popular amongst millennials such as Empire, The Big Bang Theory, Orange is the New Black, Game of Thrones, The Walking Dead, Modern Family, and more. We decided to use Taylor Swift and Maroon 5 in this commercial because out of the set list, these two artists are considerably two of the more popular and well-known artists.

Radio Ad Recommendations Sound effects: Instrumental of Maroon 5's song “Sugar” playing in background Ryan Seacrest: Hey guys! Snapple will be bringing together some of your favorite artists to help you begin your summer the right way!

Sound Effects: People cheering Rihanna: I will be performing, along with many of your other favorite artists.

Ryan Seacrest: Snapple’s Music Festival will be happening May 20th to the 22nd so make sure to buy your tickets as soon as possible.

Rihanna: Also a big thank you to Snapple for throwing this music festival together.

Sound effects: People chanting “Snapple” over and over.

Above is a thirty second radio advertisement that we created for this campaign.

This advertisement will air frequently on KISS 108. We chose to use KISS 108 because that radio station is super popular amongst millennials so we thought this would be a good way to reach them.

Print Ad Recommendations

We will be printing this in magazines such as Seventeen and Sports Illustrated, so we can be able to reach both male and female consumers. This is an ad to pique interest in the festival, and people can see who will be performing and will check out the information on the Facebook or the Twitter page if they are interested. Since the ad is so simple and only gives the tagline of the campaign and the artists who will be there, people will be inclined to check out what it’s going to be all about. Giving the Facebook and Twitter handles allows the consumer to interact with the ad and make it more than just a viewing experience.

Social Media Recommendations

This is an Instagram ad, which is very popular among our target audience.

However, you can’t really have as much information as would be necessary to tell what the music festival would be all about, so the “learn more� button would lead to the Facebook page, allowing the consumer to interact with the ad to increase interest. This ad is similar to the print magazine ad, so there would be a cohesiveness to our advertisements in this campaign, with the names of the artists who will be there made to look like an iced tea bottle, and the bottle pouring out some music notes, showing that there will be a lot of music at this event.

Direct Marketing/ Personal Selling Going with the theme of sponsoring a 2 day music event, gives Snapple the chance to network heavily both through social media, as well as connecting personally to the consumer, to create a bond. Our main tactic was to set up tents throughout the vicinity of the concert to connect with as many people as possible. Our reps were to give any visitor a variety of free samples to anyone who visits the tent. Giving out free samples is an effective way to show the consumer the quality within our product, as well as the versatility in our products. Giving out samples is also a low cost yet very effective way to gain consumer trust as the consumer bases his or her opinion solely on whether or not they like the taste of the product. Another way we worked on direct marketing/ personal selling through the tent, was having featured concert artists meet and greets throughout the day. The idea behind this was that if a fan is able to meet their favorite artist at our tent, than they will associate our brand with their favorite artist, which gave them a positive memory to look back on, that may recur when they see our products in the market place, which may make them a loyal consumer.

Sales Promotions During the two day concert Snapple will be giving out a ton of sales promos to generate traffic to our various web pages. The first promo is we will give out a free 6 pack of Snapple to any concert goer who visits our tent, and shows proof to one of our sales reps that they liked our Facebook, Instagram, Twitter page and shared one of our promotional posts to their Facebook, Instagram or Twitter page. Anyone at the concert or not at the concert, who subscribers to our mailing list will receive a buy one get one free discount, on any Snapple product via email. The discount is good at any CVS, 711, Market basket. The third promotion is any concert goer who visits our tent and takes our survey will receive a free Snapple beverage of choice, sunglasses, and an option of a T-shirt or hat.

Online Marketing We chose Facebook as our primary source of online marketing. Facebook averages 1.59 billion users monthly, and it is one of the most low cost and most effective marketing tools there are. Facebook allows Snapple to connect with consumers on a personal level, whether that is responding to questions, complaints, or what’s new with our products, and how we can improve. Communication is important to Snapple and Facebook provides us with the fastest way to get for consumers to get in touch with and vice versa. Facebook is a quick way for us to inform our FB friends about new promos and products, as giving us insight on consumers buying behaviors and what it is that attracts our target demographic to buying certain things.

Campaign Flowchart

Measurement and Evaluation In order to evaluate the effectiveness of our campaign we will carefully monitor the sales. Before we run the campaign we will take note of the average of sales in order to be able to accurately judge our progress. During the middle of the campaign we will check in and monitor the sales to make sure progress is being made. If we find no progress then we know adjustments need to be made. When the campaign ends we will take note of the sales and compare them to the average of sales before the campaign started in order to find out the increase our campaign made.

Another way we will evaluate the effectiveness of our campaign will be by monitoring the amount of visits to Snapple’s website. The tool that we will be using to monitor this is Google Analytics. We chose Google Analytics because it’s a simple and quick way to analyze visitor traffic. If we see a decent increase in the visits, then we know our campaign was effective.

The final method we will be implementing for our evaluation will be running a focus group. We will be running the focus group at the end of our campaign in order to evaluate the effectiveness of our campaign. We will ask random people, within our target market, to attend the focus group. We aim to have between 10 and 12 participants. At the beginning we will show the focus group the different advertisements we created. After the people in the focus group view the advertisements we will then ask them a few questions to learn their opinion and to gain a better understanding of

how effective our advertisements were. Here is a list of questions that we will ask our focus group: 1. Have you guys seen any of these advertisements prior to this focus group?

2. If you did see one of these advertisements beforehand, did you buy a Snapple product soon afterwards?

3. What was your favorite advertisement?

4. What exactly did you like about the advertisement that you chose as your favorite?

5. What is your least favorite advertisement?

6. What did you not like about the advertisement you chose as your least favorite?

7. When you hear the name “Snapple” what is your first thought?

8. What features do you like most about our product featured on the advertisement?

9. Would you buy this product? Why or why not?

10. What are some change you’d like to see with Snapple?

Budget Summary The budget for this campaign will be about $50 million for all of the different techniques and media sources that we will be using. The kind of budgeting method that we will be using is incremental budgeting, because it will be simple to prepare for our campaign and to get the word out about the festival. $10 of the budget will go toward the sales promotions and direct marketing for the campaign. $15 million will go towards more traditional advertising, such as television, magazine, and radio advertisements.

We will place our ads on shows such as Modern Family and Empire, magazines such as Seventeen and Sports Illustrated, and radio stations such as KISS 108. The remaining $25 million will go towards new media sources, like social media sites such as Facebook, Twitter, and Instagram, because these sources are incredibly popular among our target, and they will be the most likely to see the ads on there.

Conclusion The main goals for this plan are to increase brand awareness among millennials and to increase Snapple’s market share to help get it to be above both AriZona and Lipton iced teas. The idea for this plan is for Snapple to sponsor a music festival in the spring over a weekend. Music festivals have been proven to be very popular among millennials, which is why it is the perfect avenue for Snapple to pursue that increase in brand awareness. Our ads would focus on advertising this music festival, and we would really push our direct marketing, personal selling, and sales promotion, as we would be offering many incentives to people who came to our Snapple tent at the festival. We would place a large emphasis on social media marketing, because it is so popular among our target market, but would also provide part of our budget for more traditional forms of media, such as television and media. We would monitor the sales for Snapple before, during, and after the festival, to see how effective our campaign was in raising brand awareness among millennials.

Appendices

Above are two examples that show the current health trend going on in the industry. These advertisements come from two of Snapple’s biggest competitors. In the Lipton advertisement they use the color green because it represents nature and health.

On Lipton's advertisement all the words promote health. When you look at Nestea’s advertisement, you can see they also use green and they placed an image of healthy foods on each of their cans to give their consumers the idea they are drinking something super healthy.

The ready-to-drink iced tea market has grown over the past few years. It hit $5.3 billion in sales in the U.S and $50 billion worldwide in 2014, for a growth rate of 3.7%. In 2014, ready-to-drink iced tea made up 52% of all of the tea prepared in the United States as of 2014. With this increase of people wanting to eat healthier and drink healthier, they are beginning to stray from sugary and unhealthy soda beverages and going to healthier alternatives, such as iced tea. This creates a perfect opportunity for this marketing campaign because while people are already wanting to switch.

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