Kelley Bode, Claire Richard, & Caroline Skarupa Dr. Glenda Alvarado December 11, 2012
Table of Contents Executive Summary
Brand & Industry Overview
Media Objectives & Strategy
Reach & Frequency
Media Choices/Budget Allocation
IMC - Event
Overall Conclusions & Recommendations
Executive Summary Perrier has always presented its brand as being upscale. In the past, their print ads especially, have been comparable to French art. Currently, Perrier runs TV spots that coincide with their social media campaign and website called “The Drop.” The brand also runs Société Perrier, a website dedicated to promoting nightlife, art, music, fashion, travel, and “cocktail culture” in major cities. This website is essentially the center hub for Perrier’s first-class audience to be in the know of all culturally elite events in major cities. Although Perrier’s target audience is primarily younger professionals who are upper-class, we feel that is it is also important to consider the audience that aspires to fit into this niche. We will address this by reaching these aspiring elitists through our creative strategy and our IMC event. We plan to utilize Perrier’s existing media channels to reach the current (and aspiring to be) target audience. Our plan includes placing TV spots on specific networks and dayparts, placing magazine insertions in pre-determined publications, placing online banners and search ads on certain websites, and placing out of home advertisements where we know our target audience will see them. Based on our research, we can determine which specific channels Perrier’s target audience consumes on a regular basis and will plan to place our message here in order to effectively reach them. By considering each of these media channels carefully, we feel that our choices in creating this media plan will deliver Perrier’s message to its target audience (and to those who aspire to be them) effectively.
Situational Analysis Brand & Industry Overview Perrier currently runs TV spots that tie into their social media campaign, “The Drop.” They have an active presence on Facebook and Twitter. Perrier has also created an events program and website called “Société.” They call it the “source for nightlife and culture.” This particularly appeals to city-dwellers who are looking for the next great place to go. This online program highlights special events happening in major cities. Outline of Existing Mix of Media & Promotion • TV spots • Facebook • YouTube • Website/”Société”
Product Analysis Perrier, a world leader of bottled, sparkling mineral water, is found in most retail outlets. Known for its distinct, teardrop packaging, Perrier can be found packaged in glass bottles, plastic bottles, and cans. There are unflavored, naturally flavored, and Perrier Fines Bulles (only offered in plastic bottles) versions currently available. Almost 50% of Perrier’s sales are abroad as the brand has a presence in 140 countries.
Current Consumers Perrier drinkers generally fall between the ages of 25 and 54 and are only 4% more likely to be female. These people hold professional occupations and have a tendency to live in the Northeast with an average household income of $150,000+. Our research indicates which specific media channels this target market consumes (see Figure 1). Perrier drinkers tend to read magazines related to finance and travel. They are more likely to read magazines like Architectural Digest, Bicycling Magazine, Coastal Living, Conde Nast Traveler, the Economist, Elle Magazine, Esquire, GQ , House Beautiful, and Kiplinger’s Personal Finance. Perrier drinkers prefer to watch awards-specials, horse racing, news-specials, soccer, and tennis on television. They tend to tune into shows on networks like Bloomberg Television,
Fox Business Network, Logo, the Tennis Channel, Ovation, and the Sundance Channels as well as national broadcast networks. TV
Figure 1 Perrier drinkers tend to view business and news websites as well as travel aides. Perrier drinkers spend a majority of their time on the web on sites like Gmail, CNN.com, nytimes.com, WSJ.com, Trip Advisor, IMDB, and Expedia.com.
Competitive Analysis Market Share In the sparkling water market, private label water (store-brand) takes the No. 1 spot with 21% market share and nearly $108 million in dollar sales in SymphonyIRIâ€™s measured channels. The Perrier brand takes the No.2 spot with 18.1% market share of sparkling mineral water (see Appendix Table A1). Private label water is believed to top the 4
marketplace because people see very little difference between the branded and private label products. Marketplace Aggression The overall bottled water category reported nearly $6.7 billion in sales and a 3.4 percent increase in dollar sales during the 52 weeks ending April 14 in food, drug, and mass merchandise stores including Walmart, according to New York City-based Nielsen. Leading the category’s growth was the sparkling/carbonated water segment, which overall reported 17.3 percent growth to $825 million in Nielsen’s measured channels during the 52 weeks leading up to April 14. How Competitors Position and Promote Their Brands • Poland Spring: prides themselves on only using 3 ingredients in their sparkling mineral water. • Sparkling Ice: “Bold Flavor. Zero Calories. Perfectly Possible” • La Croix: “Pure.” Their website states: “A true American favorite for over 30 years, LaCroix has the distinction of being the number one sparkling water brand sold in cans.” • Poland Spring: prides themselves on only using 3 ingredients in their sparkling mineral water. • Poland Spring: prides themselves on only using 3 ingredients in their sparkling mineral water.
Media Objectives & Strategy Target Audience Objectives We feel that it is best to keep our target audience the same because a younger, lower class audience is more likely to be concerned with functionality rather than image when it comes to selecting bottled water. Perrier is generally priced higher than the typical bottled water brand, and therefore, must be presented as a want instead of a need. However, consumers outside Perrier’s current target market tend to view water as a need in which it quenches their thirst, hydrates them, and keeps them healthy. Perrier’s benefits exceed these functionality requirements and is therefore better suited to their current core consumers. Demographic Profile • • • • •
Adults aged 25-54 Likely to be engaged Household income of $150,000+ Employed in a professional occupation Lives in the Northeast
Psychographic Profile • • •
Loves to travel Enjoys playing “higher-class” sports like tennis and golf Read more intellectual magazines such as Vanity Fair, Conde Nast Traveler, GQ , the Economist--they read magazines related to finance and travel Fashion-forward
Strategy We plan to reach our target audience through TV spots, magazine insertions, and out of home and online advertisements. Based on our research, we believe that using these media channels will be the most effective in reaching our target audience. Our target audience watches primarily primetime TV on both network and cable. They are avid magazine readers, and often commuters who live in large, metropolitan areas. We felt that placing our message during primetime on TV on select networks, in magazines geared toward our audience’s interests, out of home (particularly in airports or in public transportation units), and on websites they frequently visit would successfully bring Perrier’s message to them.
Reach and Frequency Objectives We have chosen to set an objective of reaching 45-50% of our target audience because we have declared a narrow target audience. Our national plan will begin with a frequency of 6 for the first month of our campaign, raise to a frequency of 7 for the second month of our campaign, a frequency of 8 for the peak months of our campaign, a frequency of 7 for February, and a frequency of 7 for April. Our spot plan will begin with a frequency of 7 for the first month of our campaign, have a frequency of 8 for the next 3 peak months, a frequency of 7 for February, and a frequency of 7 for April. We have decided on these frequencies because our goal is to get the current Perrier consumers to purchase the brand more as oppose to reaching out to new audiences. Strategy As indicated below in Figure 2, we will reach 45-50% of our target audience both nationally and within specific spot markets at a frequency of about 7 times on average. One way we are able to accomplish these goals is by placing more TV spots in our select spot markets. This will increase the impressions on our target audience who lives in large, metropolitan areas. Also, we will spread out our national TV buys amongst primarily early morning and primetime because these are the times that our target audience tends to watch TV. Therefore, we will be more accurate in reaching them. Furthermore, we will accomplish these goals by placing advertisements in primarily financial and travel magazines since our target audience is avid magazine readers. Also, since our target audience is largely comprised of commuters we suggest using out of home advertisements such as billboards in airports. Finally, we will reach out to our core consumers with popular website banners and regular Facebook and Twitter updates. Figure 2
Creative Objectives Continue to position Perrier as a high-end and well-established brand. Position it as a product that consumers will aspire to drink. Strategy This campaign for Perrier will target current users, particularly upper-class professionals, by positioning Perrier as classy, high-end bottled water. Perrier falls under the “affective” category in the Foote, Cone & Belding strategy-planning model which means that buying Perrier requires high involvement, and it is about the feeling you receive from buying it. This can be compared to paying a higher price for jewelry in order to impress others which has the benefit of making you feel good about yourself. Therefore, the campaign will highlight that Perrier raises your status among others. The graphics will emphasize the copy through colors and textures associated with power and prestige. The big idea of our campaign is that Perrier can turn a party into the social event of the year. Because these upper-class professionals tend to put enormous amounts of energy and money into planning their holiday functions, providing Perrier is a way to make it the classy event they envisioned. It’s a way to set themselves up as the socialites they wish to be. With Perrier, your social status is given a boost or maintained at a high level. Our slogan will be “Class can’t be bottled, pour it out.” The idea being that the class associated with Perrier should not be kept bottled up, but should be flowing for your guests so that your influence and classiness can be witnessed. It also has further meaning that people are born with class, and it cannot be learned which is a common view of our target audience. The campaign will be continued through the description of a variety of parties Perrier could be featured at as well as different results from providing Perrier. The messages should convey a sense of understanding for the hard work and determination the target audience projects in their business as well as personal lives. The imaging and copy should create worth with the consumer by Figure 3
providing the benefits of using Perrier. In order to reach the target audience, all of the messages will be from the perspective of a well-respected professional aged between 25 and 54. The campaign will reach consumers on an esteem level as demonstrated in Maslow’s Hierarchy of Needs (see Figure 3) and then inform them of the benefits of Perrier.
Media Choices/Budget Allocation Objectives The budget for this campaign is $20 million. Selected Spot Markets
We will run our campaign through TV spots, print insertions, outdoor advertisements , and online advertisements primarily over five months from October 2013 through February 2014. Also, April 2014 will include TV spots, print insertions, and advertisements on certain online sources such as CNN.com and Expedia.com. Social media will be used continuously. Based on our research, it is clear that our target demographic currently consumes these mediums and would be easily reached through them. Strategy We felt that allocating nearly a third of the budget for out-of-home advertising would be most appropriate for this particular target market. Our suggestion is to use this piece of the budget on billboards in airports located in the aforementioned spot markets to reach the target audience which tends to travel on a regular basis. We believe that they will be more likely to remember an event or a spontaneous happening sponsored by Perrier.
TV Print OOH Online
We also know that this particular target market watches plenty of primetime television, are avid magazine readers, and spend time online. Between these other media outlets, we felt that allocating the budget amongst the three based on their reach to our target audience would be most appropriate.
25% Figure 4
Our selected spot markets consist of the ten most populated cities in the United States. This includes: New York, Los Angeles, Chicago, Philadelphia, Dallas, San Francisco, Boston, Atlanta, Washington DC, and Houston. See Appendix Table B1. Strategy By selecting the cities in Table 3 as our focus in our media plan, we will be reaching 29.55% of the U.S. demographic target. These city-dwellers are more likely to be purchasing Perrier as it is because they fit perfectly into our target market. Â They live in cities where networking is an importance, and commuting is common. Â Our reasoning for honing in on these cities despite already being established there is to further reach this percentage of the target market that is most influential. Â Each of these cities has a major airport with a large number of travelers that flow through each on a yearly basis (see Appendix Table B2). This information has helped to plan our scheduling and timing for our out of home placements. Also, it is important to keep up brand recall so that we do not fall behind as a preferred bottled water brand among our target market.
Scheduling/Timing Objectives We will run our campaign primarily over five months from October 2013 through February 2014. Â During these months, many Perrier consumers are hosting holiday parties and attending high-end social events. By running our campaign during this time period, we will not be competing with our top competitors in the holiday clutter, and Perrier will become a top-of-mind choice for consumers as they plan their own holiday parties. Throughout the rest of the year, the campaign will run on a hiatus aside from April 2014, to begin advertising for the Kentucky Derby in May, and our use of social media. Strategy We have developed this scheduling strategy to reach Perrier consumers at a time when the holiday season is prevalent and get-togethers and formal parties are more frequent, especially amongst our target market. As our target market plans their social events, our hope is that Perrier will be the top-of-mind choice for their events during this season. See Figure 5. Â
IMC Event Objectives As Société Perrier, Perrier’s social hub for its consumers, grows in popularity, we would like to continue to utilize it as “the place to go” to locate special events, upcoming restaurants/bars, and new cocktail recipes that feature Perrier. This site, the events it sponsors, and the cocktail recipes it shares increase brand awareness and continue to keep the brand an upper-class product in the eyes of the consumers. Strategy Perrier will host rooftop parties at our previously mentioned cities such as New York, Los Angeles, and Chicago for New Year’s Eve. With the expectation that it will be chilly, we will be sure to place multiple heat lamps at each party. Invitations will be sent out to the socialites and high society of each city and there will be a person checking names at the door. The parties will be decorated in a New Year’s Eve fashion with subtle touches of Perrier images. They will include live bands and an open bar as well as a dance floor. The open bar will feature cocktails made with Perrier. There will even be an option for chilled Perrier in a champagne glass with Monin Perles de Cassis for New Year’s toasts. These parties will have a dress code of semi-formal in order to keep the image of Perrier intact. The success of these parties will be measured by the amount of guests attended based on the guest lists cross referenced with the amount of invitations that were sent out. Also, Perrier will provide car service from your holiday party or event. This will be used to target those who are middle-class but aspiring to be a upper-class socialite. The service will only be available to those who receive a VIP Card from a company representative. This VIP Card will include a phone number in which to contact the car service. The service will look like taxis on the outside except for Perrier advertisements pasted onto them, and they will function similarly to taxis. The interesting concept is that Perrier’s car service will have nice interior with televisions on the backs of seats, and they will be stocked with Perrier. The success of this event can be measured by the amount of phone traffic. Also, there will be a customer service line in which people can leave their comments or complaints on the service. Lastly, Perrier will sponsor “light tour” limousines during the holidays. These include a tour of the holiday lights set up around your city in a limousine with an exterior of advertisements for Perrier, and a typical limousine interior stocked with Perrier. Success of this event will be easily measured because tours must be booked in advance. Success will depend on the amount of tours booked which will show how successful the advertising for the event was.
Overall Conclusions & Recommendations It is our belief that through the use of these recommendations for the 2013-2014 Media Campaign, Perrier can heighten awareness with its core consumers, increase return on investment, and become even more successful. Perrier’s current target audience is the most appropriate for the positioning of the brand because of the higher value of this product. Therefore, we suggest continuing the marketing of Perrier to professional adults aged 25-54 with a household income of $150,000+ and who spend their time traveling and reading intellectual magazines. The best option for scheduling is to run this media campaign primarily over the five month period from October 2013 through February 2014 and to include April 2014 in expectation of the Kentucky Derby. The rest of the year we will run on a hiatus except for the use of social media. The purpose of this is the vast amount of high-end parties during these holiday months. Also, because our primary focus is the winter months, we will break through the holiday clutter since no other bottled water brand advertises during this time period. There will be an emphasis in national and spot markets during the peak months and a gradual increase and decrease during the outside months. We recommend placing more TV spots in large, metropolitan areas, and national TV buys should be spread out amongst primarily early morning and primetime. Also, insertions should be placed in financial and travel magazines. Commuters will be reached through the use of out of home advertisements in the form of billboards in airports. Finally, we can reach out to our core consumers with weekly email blasts, monthly online newsletters, popular website banners, and regular Facebook and Twitter updates. The big idea for this campaign would be that Perrier can turn a party into the social event of the year, thus, giving the consumer’s social status a boost or maintaining it at a high level. Our slogan will be “Class can’t be bottled, pour it out.” Based on Perrier’s current value and scope, we recommend a budget of $20 million for this campaign. This budget should be split between selected spot markets and a national presence. We believe that 35% should go to television, 35% to Out of Home, 25% to print, and 5% online. This is best set up in the selected spot markets with $2 million placed in television and $7 million in Out of Home while nationally $5 million is invested in television, $5 million in print, and $1 million online. Social media should be used continuously. Our selected spot markets consist of the ten most populated cities in the United States accounting for almost 30% of the U.S. market. 14
Lastly, through IMC events such as exclusive rooftop New Year’s Eve parties, specialty holiday car service, and Perrier light tour limousines, we can get the word out about Perrier in a way that upholds the brand’s image of class. Based on our findings on Perrier and the current market, we recommend the aforementioned steps towards a successful media campaign.
Table B2 17
Appendix C Sources • Table B1: http://factfinder2.census.gov/faces/tableservices/jsf/pages/ productview.xhtml?pid=EEO_10_5YR_EEOALL1R&prodType=table • http://www.panynj.gov/airports/pdf-traffic/ATR2011.pdf • Table B2: Source: U.S. Census Bureau - American FactFinder • http://factfinder2.census.gov/faces/nav/jsf/pages/searchresults.xhtml? ref=top&refresh=t • www.Perrier.com • http://www.nestle.com/Brands/Pages/BrandsDetail.aspx? brandguid=BD7F7C67-2F38-4A81-9FBC-451DF829CB11&BrandName=Perrier • http://www.finewaters.com/Bottled_Water/France/Perrier.asp • http://www.nestlewatersnorthamerica.com/pdf/PR_BWQR.pdf • http://www.bevindustry.com/articles/85654-2012-state-of-the-industry--bottledwater • http://www.sanpellegrino.com/us/en/default.aspx • www.sparklingice.com • http://www.lacroixwater.com/ • http://www.polandspring.com/#/home • www.topochico.com