AbagailSmith Thursday, December 15, 11
Company profile vitaminwater Glaceau, is a privately owned subsidiary of Coca-Cola Company.
Founded in 1996, the company manufactures and distributes various lines of enhanced water. Initially the products were distributed to health food stores, in 2000 GlacĂŠau introduced vitaminwater, and expanded to nationwide distribution.
By 2002, the GlacĂŠau line of waters were the top selling enhanced water brand in the United States, with the companies vitaminwater being its best selling product.
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In 2006, the company earned $350 million in revenues. Because of the products success, the company began global expansion, launching its products in the United Kingdom and Australia in 2008, and France in 2009.
Designed to "fill the gap" between soft drinks and water for people who knew they should drink more water but weren't. With fewer calories than soda, the drink both hydrates consumers and provides nutrients they are likely to be missing.
Marketing Objectives Increase market share by 10% Increase brand loyalty Increase brand awareness
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Media Objectives Spread awareness to non-users Maintain awareness with loyal users Strengthen image as a healthy drink with a great taste
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Media Strategies Magazines Three very different magazines were chosen; ESPN, Health & Fitness, & US Weekly. Covering three different aspects of the target audience; sports, health, & entertainment the sales will increase while the brand spreads awareness.
TV Prime time will connect with the younger demographic, & Day time commercials will reach those at home during the day, specifically young moms. The ads will run during the holiday season & winter time, when families & people are more likely to be inside around a TV
The media strategies were strategically chosen to reach our audience. Four different mediums; TV, OOH, Magazines & Online, will allow vitaminwater to regain sales and spread brand awareness.
Online OOH OOH will be heavy in the summer, when people are outside. There are bus ads, train ads, billboards, taxi tops & guerrilla advertising. Anyone who is outside is likely to see one of the many forms of OOH for vitaminwater.
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Five sites were specifically chosen to reach & connect with the audience; ESPN, US Weekly, Facebook, Twitter & Hulu. ESPN & US Weekly were chosen to create consistency with both online & print publication. Facebook & Twitter will allow interaction with the consumers & provide updates. Hulu is widely used by the target demographic, thus its a great way to reach the audience in an unexpected way.
Competitors & market conditions Gatorade and Powerade are sports drinks created to help athletes rehydrate & improve performance during practices and competitions. Both brands are made with a mix of water, sugar & salts to help maintain the correct balance of carbohydrates & electrolytes lost due to physical exertion and perspiration.
Gatorade remains dominant with sales of 553 million cases last year 2010. Advertisement for Gatorade measured $95 million in the first nine months of 2010 -- five times more than the $18.7 million Coca-Cola spent on Powerade.
Powerade’s sales nearly tripled, from 63 million cases to 177 million cases, from ’00 to '09. Powerade Zero had an 84 % increase in third-quarter sales.
Powerade has replaced vitaminwater on the sidelines of 88 NCAA non-football championships, including baseball and basketball, giving it wide-ranging marketing rights.
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Seasonality Spring
Heavy Warm weather & outdoor exercise/activities
Summer
Heavy High level of activity, outdoor sports & exercise
Fall
Winter
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Medium Consumers still active, but not as much
Low Outdoor activity & sports are low
Opportune time to advertise OOH heavily to reach our audience participating in outdoor activities
Sports start: MLB, NFL season & playoffs Target sports fans & use sports stars in ads. Magazine and online ad’s will be heavy during this time.
Families often indoors Good time to increase TV ads, & Holiday season. Magazine, TV, & online ads will be heavy
Geography National Plan Budget: $10,000,000 Audience size: 24% of total US population
Last year vitaminwater’s sales dropped 22%. Since the drop and sales, the company has repositioned its ads to the younger demographic. The new slogans imply being the cure to ‘long nights.’
Reaching our audience: The media tactics of vitaminwater will included targeting both demographics; the younger culture, & the already loyal older demographic. Increasing advertising targeted at both audiences will increase awareness and sales.
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Consumer profiles Male & Female 18-35 Single/Married HHI $40,000 + College Graduate
Katharine 34 College graduate Mother and wife. Enjoys reading magazines, & promoting a healthy life style for her & her family. Thursday, December 15, 11
Sam 20 Attending College Single Enjoys swimming, blogging, playing video games & downtime with his friends.
Magazine ESPN Sports fan’s, 18-34, are the main consumer of this publication. ESPN provides consumers with news of up and coming players, rivalries, big events, issues & trends both on the field and in the lives of today’s highest-profile athletes.
With a decrease in vitaminwater’s ad’s in NCAA sports, it’s important to pursue the sports market even more so than previous years. By advertising with ESPN in both online & magazine publications, the opportunities to advertise sports event will increase.
The ads in ESPN will be during high sports months: February (Superbowl) March (march madness) June (NHL & NBA finals, baseball in full swing) October (College football, NFL football, MLB playoffs)
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Magazine Health & Fitness Health & Fitness publishes articles focusing on sports & recreation, health & wellness, fitness & exercise, beauty & style.
Geared towards consumers who lead an active lifestyle & want to know the latest ways to improve their health through recreational activities & innovative workout programs
This publication allows vitaminwater to maintain its healthy reputation and association as a nutritious drink. The ads will run all 12 months of the year.
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Magazine US Weekly US Weekly is a print & digital publication, providing consumers with articles on popular culture. Each issues contains breaking entertainment news, exclusive interviews & original photography of personalities. The publication also provides coverage of fashion & style trends for today’s fashion forward consumer.
Reaching a wide demographic of consumers through this publication gives the opportunity to expand awareness and increase sales. We want our consumer to be aware of the health benefits of vitaminwater, what better place to show them this than in a magazine surrounded around health.
The ads will be in high in beginning months of new seasons. New trends come out during that time so more readers tend to pick up the publication. January, March, June, September, December
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Magazine Media Buying Cost 1 pg. color
Cost for bleed
# Months
ESPN
$226,000.00
N/A
4 months
Total cost $904,000.00
Health & Fitness
$4,721.00
N/A
12 months
$56,652.00
US Weekly
$199,815.00
N/A
5 months
$999,075.00
Which ad for which magazine? ESPN.
Health & Fitness.
US Weekly.
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Total = $1,959,727.00
Commercials & TV Spots This commercial features celebrities such as Brain Urlacher, Adrian Peterson, Carrie Underwood & 50 Cent. This commercial will air on Prime time to reach the our younger consumer.
This commercial appeals to our older consumer & specifically females. Its showcases the health benefits of vitaminwater zero with a fun & tasteful plot that women would find appealing. It will air during Daytime
Vitaminwater’s commercials target the TWO prime consumers
Geared towards males & vitaminwater’s younger consumers (18-25)
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Geared towards women (20-35) looking for a zero calorie drink thats both nutritious & tasty
National TV Buying Prime Time
Day Time
10 pts /week x (12 weeks) = 120 TRPS @ $25, 300 CPP =
10 pts /week x (24 weeks) = 240 TRPS @ $7,000 CPP =
$3,036,000
$1,680,000
CBS "CSI" (crime scene investigation) 23.49 million viewers "NCIS" 18.59 million viewers "Criminal Minds" 16.9 million viewers ABC "Dancing with the Stars" 18.59 million viewers "Desperate Housewives" 15.51 million viewers "Grey's Anatomy" 14.8 million viewers
Total = $ 4, 716, 000 CNN ABC News MSNBC HGTV The view Ellen The Oprah Winfrey show
ESPN
Rationale Achieving the highest potential reach by consistent flighting once every week for 12 months, alternating from the 3rd week - 2nd week and so on of each month
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Rationale Consistency with Prime Time, Day time flighting will be twice every month (for the 1st and last week of each month) for 12 months.
OOH Billboards/Bulletins Billboards March - May (Spring) July & August (Last two months of summer)
Rationale The ads chosen are simple & eye catching. There is not too much content, making it easy to read for those in the car & or walking.
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OOH 30 Sheets 30 Sheets April - August (Spring & Summer)
Rationale Large advertisements such as this are a great way to reach the target audience & many others outside of the target consumer. Especially during the spring & summer when people are traveling & even for commuters.
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OOH Bus Shelter Ads
Heavy in big cities, such as: Chicago, New York, Washington DC & California. Ads will be during; March - July Thursday, December 15, 11
Rationale Bus stops are a great form of advertisement because people taking transit & even people walking down the street see them.
OOH Train Station Ads
70 Train Station ad’s Ad’s will be placed in the 4 largest cities with public transit
San Francisco
New York
Washington DC
Chicago
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Rationale Public transportation in large cities is the main form of travel for many commuters. Having ads in train stations of daily routes will position our product in their minds. Ads will be during; Feb., April, June, Aug., Oct. The alternating months allow for a wider span of people to see these ads over a 10 months period, alternating every other month
OOH Taxi Tops
120 taxi tops for National Plan Locations will be heavy in city settings, such as: Chicago, New York, California & Washington DC
Rationale Taxis are prevalent in big cities. Whether you take taxi’s or not, you see them daily. This is a great way to put our bright colors on taxi tops. Months of ads will be; March, May, July, Sep., Nov. The months are alternating over a span of 10 months, creating brand awareness amongst users & non users.
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OOH Bus & Train
King Size Bus Posters Showing size: 25 # of units: 250 1 month = $17, 359 Locations will be equally divided nationally, with double in Los Angeles, Chicago & New York Amount for 3 months = $52, 077
To keep OOH consistent through the year, these ads will run: January, November, December Thursday, December 15, 11
Wrapped Trains Rationale Big cities have many commuters & people that take public transit daily. Having ads presented on daily routes will create awareness. There will be awareness among those who don’t use the transit, because the bus can be seen all over cities
2 wrapped train locations: Chicago & New York 1 Train wrapping = $39, 766/month 1 month in Chicago, and 2 months in New York Total = $119, 298
To keep OOH consistent through the year, these ads will run: February, September, October
OOH Media Buying Showing Size
# Of Units
Price/Month
5 Months
Bulletins
5
6
$71, 370
$356, 850
Total =
30 Sheets
100
218
$254, 898
$1,274, 488
$2, 476, 338
Bus Shelters
50
70
$45, 500
$227, 500
Train Stations
50
70
$45,500
$227, 500
Taxi Tops
25
120
$78,000
$390, 000
Showing Size
# Of Units
Price/Month
3 Months
25
250
$17, 359
$52, 077
Total =
1
$39, 766
$119, 298
$ 171, 375
King Bus Poster Wrapped Train
Total costs of OOH = $ 2,647,713
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Online Media Buying 1,000,000 Impressions bought for each site.
Facebook reaches 800 million people where they connect & share Advertising with Facebook will allow vitaminwater to spread awareness and increase sales Facebook friends & visitors to our page will lead them to our actual wed page increasing traffic to our site.
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CPM for each site is $10,000
Twitter instantly connects whats most important to the consumer. The platform allows the consumer to follow friends, experts, celebrities & breaking news. A twitter page & advertising on twitter will allow a large community of people to see our product & ultimately create awareness throughout this network & those that use it.
Totaling $50,000/ month for all sites
US Weekly online & magazine publications are perfect for our advertisement to reach the target consumers. The loyal audience of US Weekly is a perfect community to advertise to. vitaminwater is a healthy drink, and provides essential nutrients that many of these consumers would find appealing.
ESPN is the world wide leader in sports The audience of ESPN are sports dedicated & also an audience we need more loyalty from. With Powerade’s rise in sports events, there has been a decrease in vitaminwaters sponsorships. To regain this audience back, we must appeal to them online
A total of $600,000/ year for ALL sites
Hulu is a recent online platform for movie watchers. The audience of hulu is very diverse. The has increasingly become more popular & wide-spread. There aren't many ads on the site, so it would set apart our ads since it would be one of few.
Guerrilla Advertising
Creative bus stop thats you wont forget Light posts with cut-out’s that will catch you off guard QR Codes to send smart phone users to our web page Guerrilla advertisements have been popping up around large cities. The average person see’s hundreds of advertisements a day, sometimes without even knowing. To gain reach with our consumer, its beneficial to take a different approach--surprise them. The rest of the budget will be used for the two months; June & July. These months are during the spring and summer, people will be outside & its an opportune time to surprise them. Thursday, December 15, 11
Price
# of Months
Total Cost
$226,000/ 1pg color
4
$904,000.00
$4,721/ 1pg color
12
$56,652.00
$199,815/ 1pg color
5
$999,075.00
$25, 300/
12 weeks
$3,036,000.00
$7,000
24 weeks
$1,680,000.00
Bulletins
$71,370/ mo
5
$356,850.00
30 Sheets
$254,898/ mo
5
$1,274,488.00
Bus Shelters
$45,500/ mo
5
$227,500.00
Train Stations
$45,500/ mo
5
$227,500.00
Taxi Tops
$78,000/ mo
5
$390,000.00
Kind Bus Poster
$17,359/ mo
3
$52,077.00
Wrapped Train
$39,766/ mo
3
$119,298.00
ONLINE Facebook
$10,000/ mo
12
$120,000.00
$10,000/ mo
12
$120,000.00
US Weekly
$10,000/ mo
12
$120,000.00
ESPN
$10,000/ mo
12
$120,000.00
Hulu
$10,000/ mo
12
$120,000.00
Guerrilla Ad
Remaining $
2
$76, 560
Total costs of each medium:
Magazine ESPN Health & Fitness US Weekly TV Prime Time Day Time OOH
(Clear Chanel)
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Magazine = $1, 959, 727 TV = $4, 716, 000 OOH = $2, 647, 713 Online = $600,000 + _______________
= $ 9,923,440 ( $76,560 left) = goes to Guerrilla Advertisements) reaching the full budget of $10,000,000
Flowchart Months
January
February
March
April
May
June
July
August
September
October
November
December
Weeks
1 2 3 4
1 2 3 4
1 2 3 4 5
1 2 3 4
1 2 3 4 5
1 2 3 4
1 2 3 4 5
1 2 3 4
1 2 3 4
1 2 3 4 5
1 2 3 4
1 2 3 4 5
ESPN H&F US Weekly Prime Time Day Time Billboards 30 Sheets Bus Shelter Train Station Taxi Tops Bus ads Train ads Facebook Twitter US Weekly ESPN Hulu Guerrilla
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Sources Neilson Market Research SRDS Lexisnexis http://www.lexisnexis.com.emils.lib.colum.edu/hottopics/lnacademic/?shr=t&sfi=AC02NBCmpSrch http://articles.businessinsider.com/2008-06-26/tech/30045748_1_hulu-ad-rates-thousandimpressions#ixzz1fITX6oJs http://gigaom.com/video/hulu-defends-ad-split/ http://www.forbes.com/global/2008/0519/024a_2.html http://www.adroll.com/pricing/evaluation http://www.vitaminwater.com/?WT.srch=1&SR=sr3_44306979_go http://www.vitaminwater.com/?WT.srch=1&SR=sr3_44306979_go http://en.wikipedia.org/wiki/Energy_Brands http://www.facebook.com/vitaminwater http://twitter.com/VITAMINWATER Thursday, December 15, 11