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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 Adamâ€™s lips moving, you donâ€™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