vitaminwater
Hydrate Your Journey
American Marketing Association
Collegiate Case Competition
December 17, 2014
Hydrate Your Journey
Table of Contents
Executive Summary1
Introduction1
SWOT Analysis2
Competitor Analysis4
Current Trends4
Research Methodology5
Research Objective
Study 1
Study 2
Segmentation Analysis7
Primary Target Market Analysis
Secondary Target Market Analysis
Marketing Plan and Strategies9
Marketing Objectives
Key Issues Facing vitaminwater
Positioning
Media Plan9
Media Objectives
Media Strategies
Media Mix
Media Budget
Media Flowchart
Advertising and Promotional Campaign12
Sales Promotion
Public Relations
Scavenger Hunt
Concerts and Festival
Label Contest/Packaging
Commercial
Extra Incentive
Digital Marketing16
Website and Microsite
Internships
Twitter and Facebook
YouTube and Online Radio
Email
Instagram
Snapchat
Measuring Effectiveness18
Sales Forecast19
References20
Appendix A-T21
Yo Hidratare Tu Camino
Executive Summary
vitaminwater is a market leader in the enhanced flavored water beverage industry but has been facing
many problems the last few years that may threaten the hold that vitaminwater currently has on the
industry. The enhanced flavored water market, including vitaminwater, has been facing declining sales
over the last five years. There is also brand confusion about when and where consumers are expected to
drink the beverage. Consumers may even see vitaminwater as a sports drink which is contrary to where
vitaminwater sees itself. Another problem for vitaminwater is that their marketing tactics lack cross
appeal and they need a message that appeals to diverse consumer groups.
The target market that vitaminwater would like to focus on is the 18-to-24 age group. In order to solve
these key problems we identified a primary target market that can be categorized into two segments: the
“Social Sippers” and the “Gratified Guzzlers.” Social Sippers are connected to digital media and drink
vitaminwater sparingly, while the Gratified Guzzlers are content with the beverage and drink large
amounts of it. In order to appeal to this target market, vitaminwater must leverage trends that these
segments find important. Some of these trends include a celebrity culture, widespread digital media,
diversity and openness, and the environment.
We will reposition vitaminwater as the enhanced flavored water beverage that brings you flavorful
experiences, humor and rhythm throughout your journey. To reinforce this positioning and to appeal to
the target market we identified we developed a series of tactics that are tied to trends and are centered on
social media. Our marketing tactics leverage an understanding of the consumer, vitaminwater’s current
capabilities, and enduring trends that connect to diverse consumer groups in the United States of America.
The events that will be implemented are a Scavenger Hunt, Concert, Label Contest and Festival. We will
develop a campaign that will be sustainable and can be repeated for future years building brand loyalty
with the new target market. Our tactics begin with generating buzz for the Scavenger Hunt in order to
engage our new target market. The tactics conclude with a festival to incentivize our loyal target market
who has been on the journey of the campaign with us.
Introduction
The Glacéau Company was founded in New York City by Darius J. Bikoff in 1996, and it consists
of smartwater, vitaminwater and fruitwater. In 1998 smartwater was launched and two years later,
vitaminwater. The beverages were a success and experienced significant growth in the 2000s before
being purchased by The Coca-Cola Company in 2008. The Coca-Cola Company is a prominent brand in
the beverage industry and has opened up opportunities for vitaminwater. In 2010, with more consumers
concerned about the amount of sugar and calories they were consuming, vitaminwater zero was
introduced into the market. The extensions of vitaminwater include the base drink, vitaminwater zero,
vitaminwater zero drops and vitaminwater energy. The drops and energy drink are the newest additions
to the vitaminwater family and do not make up a significant amount of sales. There are eight different
flavors for the vitaminwater base and eight flavors for vitaminwater zero. Each flavor also has a unique
name that describes the name with a short, humorous description on the label. The most popular flavors
are vitaminwater zero squeezed, vitaminwater water zero xxx, and vitaminwater base xxx.
The non-alcoholic beverage industry is worth about 118.3 billion and there is an average annual sales
growth rate of 10%. Based on information provided in the case, vitaminwater made $1,016,626,320 in
sales in 2009 but dropped to $723,307,470 in 2013 and is on track to continue to decline throughout 2014.
That is a decrease of 28.9% in sales with an average decrease of 5.8% per year. Most of vitaminwater’s
total volume sold is through grocery stores followed by convenience stores. The channel with the largest
portion of sales is convenience stores followed by grocery. According to the data provided by the
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Coca-Cola Company, most vitaminwater is bought individually in 20 ounce bottles. It is also sold in
16.9oz and 12oz bottles, which have a slightly different packaging. vitaminwater zero makes up 32% of
vitaminwater sales and most vitaminwater is purchased by repeat consumers. vitaminwater has tried
different approaches of advertising by using celebrity endorsers ranging from 50 Cent, professional
athletes, and now currently to comedian Kevin Hart.
Strengths
SWOT Analysis
i. Market Leader
vitaminwater is a market leader in the enhanced flavor water category with a 62% market share. Since
vitaminwater was launched in 2000, it has continued to create many different flavor options for its
consumers. Different taste options appeal to consumers because the diverse variety allows them to have
the ability to choose their own particular flavor, as if the drink is customized. They have also created
new brand extensions like vitaminwater zero and vitaminwater energy that appeal to different types of
consumers. vitaminwater zero drops are a great alternative for the consumers who use drink mixes. The
zero calorie options of vitaminwater appeals to the health-conscience consumers who are concerned
about their sugar and calorie intake. vitaminwater energy appeals to thrill seeking individuals who are
open to new experiences.
ii. Subsidiary of a Powerful Brand
Since vitaminwater is owned by the most dominant beverage company in the world, it has an advantage
over other enhanced flavored water drinks. With the resources of Coca-Cola, vitaminwater has gained
store shelf space because of its renowned owner. Under the ownership of an established company such as
Coca-Cola, vitaminwater is automatically given a strong presence in the beverage industry. Consumers
have already built a level of trust with Coca-Cola, which will increase the chances of them trying other
types of beverages under their ownership.
iii. Well-Known Brand
As a brand, vitaminwater has its own personality that stands out among other beverages. The drinks are
visually colorful and appealing to the eye. Each bottle has a unique flavor with a catchy and distinctive
name. The labels of each bottle have a humorous story that can encourage consumers to buy the beverage.
vitaminwater has held a close connection to the music industry through partnerships throughout the
industry.
Weaknesses
i. Confusing Health Claims
Considering vitaminwater is advertised as a healthy and nutritious drink, its ingredients do not
necessarily back up this claim. By far one of the largest and most impactful weaknesses for vitaminwater
is its artificial ingredients and high levels of sugar. Consumers are increasingly checking the nutrition
information on food and beverages before they purchase such items, and the ingredients in vitaminwater
have the possibility of deterring consumers from purchasing the product.
ii. Slow Response to Consumer Needs
When the Coca-Cola Company acquired vitaminwater it introduced some potential barriers. Now that
vitaminwater is part of a larger company, they must compete for company dollars to insure that their
brand is promoted. It also takes longer for decisions to be made because there are more requirements
before a change can be made. Coca-Cola is well known for its soda, which is not considered healthy.
vitaminwater may be associated with soda because of Coca-Cola which will negatively impact the
healthy image that vitaminwater is trying to stimulate.
iii. Brand Confusion
Brand confusion is a prominent weakness that needs to be addressed because vitaminwater is advertised
as a healthy drink but contains large amounts of sugar. In response to the high sugar levels, vitaminwater
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zero was introduced but still has artificial ingredients and therefore alienates some of the health-conscious
consumers. vitaminwater also used athletes to endorse their product, even though it does not want to
be seen as a sports drink. This makes the consumer confused and left trying to figure out the identity of
vitaminwater.
iv. Legal Issues
vitaminwater has incurred legal issues for promoting itself as a healthy beverage and benefiting
consumers in many ways that may not necessarily be true. Promoting a misleading image for itself is a
major disadvantage for the company and may cause a portion of the population to shy away from buying
vitaminwater products.
v. Not Eco-Friendly
Another weakness for vitaminwater relates to their bottles and packaging materials used. People are
not only becoming more aware about health, but consumers are also reaching towards products that are
environmentally friendly. The current bottles and packaging used for vitaminwater are not eco-friendly,
which in turn cuts off a portion of the market from buying their products.
Opportunities
i. Health Conscious Partnership
Over the last few years, being health conscious has been an increasingly popular trend that will provide
opportunities for vitaminwater. As Americans watch what they eat and become more active, healthy
options are quickly becoming popular. Currently, less people are drinking sugar filled drinks like soda and
are instead, drinking more water. vitaminwater can take advantage of this trend by being the beverage
that health conscious people choose over soda. Since vitaminwater is stationed as a healthy beverage
and wants to stand out against traditional sugary drinks, there are many opportunities for the product to
partner with other health-conscious businesses and companies. Many schools, for example, have banned
soda machines and only offer healthier alternatives. Customers who place an importance on eating healthy
tend to eat at popular restaurants like Chipotle and Subway, which allows for partnership opportunities
with these restaurants and vitaminwater.
ii. Appeal to Target Market
The amount of attention consumers pay to popular culture and what celebrities are doing provides
opportunities for vitaminwater to appeal to the 18-to-24 year old target market that they are seeking.
Many consumers are heavily using mobile phones and social media to share photos and stay connected
with friends and popular culture. Utilizing digital media broadens the chance that consumers will become
more aware of vitaminwater in general, as well as share their consumption experience with others.
iii. Green Visibility
Due to the increase in eco-friendly products, vitaminwater has the opportunity to alter its packaging
to appeal to consumers who are drawn to natural and green products. vitaminwater bottles use a very
thick plastic and a large cap compared to eco-friendly products. If they change the plastic in the bottle
they have the ability to advertise to consumers their commitment to the environment. This is important
to young people today and has the potential to increase brand awareness and show consumers the many
benefits that vitaminwater has to offer.
Threats
i. Competition
One of the major threats to vitaminwater is the number of competitors in the enhanced flavored
water beverages industry. Some of these brands include SoBe Life Water, Propel, Dasani, Aquafina
FlavorSplash, and Nestle. Of these competitors, SoBe Life Water and Propel pose the biggest threat, refer
to the Competitor Analysis for more details. Propel and SoBe Life Water both contain fewer calories
per bottle than vitaminwater, which appeals to the more health-conscious consumer. Furthermore, on
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average, vitaminwater sells for a higher price than that of its competitors. The competitors also hold a
prominent place in the market and are clearly identified for their purpose. Propel, for example, is known
for preventing dehydration and producing a quality product. SoBe Life Water holds an image for pure and
flavorful drinks.
ii. Negative Association with Lawsuits
Brand image is a threat for vitaminwater as lawsuits have been filed claiming the product has false
advertisements. It is promoted as being a healthy drink alternative, in which you are able to consume
electrolytes and a variety of vitamins including A, B, C and E. However, while vitaminwater may provide
vitamins and electrolytes, it has artificial flavors and 32 grams of sugar, roughly the same sugar content as
carbonated beverages. With many consumers becoming aware of this factor, there is the risk that buyers
will purchase a substitute drink choice.
A SWOT Matrix can be seen in Appendix A, and a TOW Matrix in Appendix B.
Competitor Analysis
The beverage industry is divided up into many categories including sports drinks, energy drinks, and
enhanced flavored water to name a few. vitaminwater’s main direct competitors in the enhanced flavored
water market are SoBe Life Water and Propel. Their indirect competitors in the hydrating beverage
category in general include mainly Gatorade and Sparkling Ice.
Gatorade is a trusted, popular and profitable sports drink brand. They use big name athletes and center
their brand around hydration on the field. vitaminwater does not want to compete against such a large
brand. Sparkling Ice is not comparable to a brands like vitaminwater, SoBe Life Water and Propel
because the cost per bottle is much higher. Due to this, Sparkling Ice is competing against other private
label brands that charge more per bottle.
vitaminwater’s direct competitors include Propel and SoBe Life Water; both are under the parent
company of Pepsi Co. To prevent Propel and SoBe from cannibalizing each other, Propel is trying to
target the over 25 age group. SoBe Life Water is targeting the same group as vitaminwater, the 18-to-24
age group. vitaminwater is priced slightly higher than Propel and SoBe Life Water and all three offer a
zero calorie option. In advertising, SoBe tends to have a more provocative and edgy approach, compared
to Propel which focuses more on those who work out daily. The bottle shape of the SoBe Life Water is
twisted at the bottom which makes it stand out. Propel has a skinny bottle to portray a sporty image.
Synopsis of Competitor Analysis
Based on our evaluation and the information presented in Appendix C, Propel and SoBe Life Water are
the main competitors to vitaminwater. The pricing of vitaminwater is on average slightly higher than
the competition. All of these beverages offer a zero calories option. SoBe Life Water has a unique bottle
shape along with edgy and appealing advertising. They have a limited variety that is growing as well as an
easily recognizable brand. Propel used to have a unique cap which it was known for but has since moved
away from that and is now known more for its powder packs. They position themselves as a workout
beverage but have a relatively low visibility. Both SoBe and Propel have a significantly lower number of
likes on their Facebook pages and followers on Twitter as well as no Instagram account. vitaminwater is
the market leader with a lot of variety using music and a comedic approach. They do not have a uniform
size of bottle, as their six and eight packs have different sizes than the single or twenty-four packs.
Current Trends
There are multiple current trends taking place that vitaminwater will apply. Some key trends identified
include, being health conscious, fast fashion, diversity, and the emphasis on value. vitaminwater must
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position itself to be seen as a healthy alternative to other beverages like soda but will not be able to
position itself as the ultimate health beverage. Many consumers who are interested in a healthy lifestyle
are also interested in being eco-friendly. The best way to capitalize on the trend of a busy and fast fashion
culture is to move with it and be able to adapt to the constantly changing fashions by utilizing social
media. There is an increasing amount of diversity in the United States, especially the Hispanic population.
This can be addressed by incorporating other cultures and races throughout the brand. The final key trend
that needs to be addressed is the emphasis on getting a ‘good value’ with every product. vitaminwater
needs to show that each bottle has a high value placed on it because it is important to consumers. These
four trends are important for vitaminwater to consider going forward.
Research Objective
Research Methodology
We completed this study to test our predictions on consumer preferences of vitaminwater and the
beverage industry. In order to determine if the 18-to-24 year-old segment was appropriate for this product
and to gauge the brand’s 30-to-39 year old loyalists. The results of our analysis were derived from focus
groups, in-depth interviews, and our surveys. After analyzing the results, we found our primary and
secondary target markets matched our preferred segment of consumers. Study 1 includes the qualitative
data using focus groups and in-depth interviews. Study 2 includes the quantitative data using Survey 1
and Survey 2.
Study 1
i. Research Approach
The objective of Study 1 was to understand the consumer and to find information to include in the
quantitative studies. We conducted a focus group to obtain insights on 18-to-24 year old consumer’s
perception of vitaminwater. Our goal was to collect information on the segment of consumers who have
either tried the beverage or have not. All participants in the focus group were within the target market of
18-to-24 year olds. We then conducted in-depth interviews of heavy-users of vitaminwater were selected
that fit our primary and secondary target markets who consumed vitaminwater weekly.
ii. Procedure
The focus group that we conducted took place during a weekly AMA meeting with our members. There
were six groups that consisted of eight persons, each group was moderated by a member of our research
team. This session was to evaluate the product’s marketing campaigns, commercials, and its packaging.
All participants were able to express their opinion on all vitaminwater products and then were able to
sample vitaminwater base or vitaminwater zero. For the in-depth interviews, team members contacted
peers they knew from the target areas and reached out to students’ on-campus who were consuming
vitaminwater. We asked questions from both survey samples to gauge their opinion on the beverage
industry, their consumption of vitaminwater, their perceptions on current marketing tactics, and their
opinion on possible opportunities for vitaminwater.
iii. Results Focus Groups
Quality: Most respondents were unaware that vitaminwater was a product of Glacéau and the Coca-Cola
Company. The general perception is that vitaminwater has a bland taste that is overpriced. Inconsistency
in their marketing tactics and advertisements has given non-consumers a mixed signal of what they are
trying to identify and accomplish as a brand.
Awareness: The majority of respondents were unware that vitaminwater had a zero option, zero drops,
and a fountain. Although they were aware of the vitaminwater base beverage, there is low consumption
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for it and very little motivation to buy due to other competitive products.
Overall: The results revealed that vitaminwater lacks a clear identity. Respondents mentioned that,
“there are too many word on the label” and were confused asking, “is vitaminwater a sports drink?”
vitaminwater is viewed as a beverage that “doesn’t know if it’s a sports drink, energy drink, or something
completely different.” The consensus seemed to be that vitaminwater is rarely an option when deciding
what type of beverage to purchase. Respondents attributed the identity problem to the clutter on the
packaging and inconsistency in marketing tactics.
iv. Results In-Depth Interviews
Awareness: Since the participants were heavy users of vitaminwater and consumed the product weekly,
they were all aware of the vitaminwater base, vitaminwater zero, and vitaminwater energy products.
However, the majority of respondents still were not aware of the zero drops and the fountain drink.
Lifestyle: The majority of our heavy users lived a similar lifestyle. The reason why they consumed
vitaminwater was because they did not consume other types of beverages that promote a different
lifestyle. Participants were not heavily involved in sports, so they did not list sports drinks as their highest
consumption. The psychographics of this segment under our primary target market is further described in
the Segmentation section. The outcome of Study 1 was used to find relevant questions to test through the
survey research.
Study 2
i. Research Approach
The objective of Study 2 was to use the qualitative data to survey a larger sample size in our target market
to find quantitative data about our target market. Survey Sample 1 was distributed to 150 students on
campus in the primary target market of 18-to-24 year old. We aimed to reach a diverse range of consumer
ethnic heritage and how frequent they consumed vitaminwater. With Survey Sample 2, we aimed to reach
our primary and secondary target markets by profiling and distributing the surveys to nearby college
campuses, grocery stores, and convenience stores. The final sample used for analysis is based on the 149
respondents, with 5% in our secondary target market and 95% in our primary (Appendix D, E and F).
ii. Procedure
In Survey Sample 1, all 150 respondents were able to sample vitaminwater base or vitaminwater zero
product after they completed the survey. We utilized nominal multiple choice questions in order to
determine the types of beverages they were consuming, distribution preferences, their perception of how
they would classify vitaminwater in the beverage industry, and which types of vitaminwater products
they consumed. We then used contingency questions for how often one consumes vitamin or electrolyte
enhanced beverages. There was also one open-ended question to determine what vitaminwater could
do to make their product more appealing for consumers in terms of packaging, marketing tactics, and
promotions.
For Survey Sample 2, we created a quantitative survey that consisted of Likert Scale and nominal
questions, which were tailored specifically to vitaminwater and possible psychographics that would
correspond to our target markets. Respondents’ were surveyed on their perceptions of the flavors and
taste, their knowledge of the vitamins and artificial flavors, and their likelihood to purchase vitaminwater.
We also confirmed which category respondents perceived vitaminwater to be placed in the beverage
industry. Results of the survey were then analyzed for trends.
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iii. Results Survey 1 (Descriptive)
Consumption of Beverages: Of the types of beverages consumed, respondents reported high consumption
frequency for bottled water, fruit beverages, and coffee. The lowest frequency reported was for
sports drinks. 45 respondents never consume vitamin or electrolyte beverages, while the majority of
respondents consume one to three times per week. The beverages that are consumed by respondents favor
supermarkets and convenience stores for distribution.
Overall: When ranking the significance of various attributes on products in the beverage industry, most
respondents were unaware of what attributes vitaminwater had that differentiated itself from other types
of beverages. For additional descriptive results see Appendix G, H and I.
iv. Results Survey 2 (Statistical Analysis)
Conversion to Consumption: 117 of the respondents stated that they have purchased and consumed
vitaminwater before, while 32 have not. When running a descriptive analysis, our highest mean was
3.66; which tells us that respondents did not feel strongly positive nor strongly negative towards the
vitaminwater products.
Purchase Intention: A descriptive analysis was conducted which found that the highest mean was a
psychographic for our target market, which was living a healthy lifestyle (3.59). The following highest
means included purchase intention (3.55), feeling good when drinking vitaminwater (3.53), and liking
the flavors vitaminwater offers (3.53). The lowest mean was that consumers did not drink vitaminwater
in place of water (1.9) with the next being social media and if it influences one’s decisions on what one
consumes (2.61); see Appendix J.
Overall: A correlation analysis was conducted with a co-efficient of .5. The correlation results show
a strong relationship between likelihood to purchase and the following variables: attitude toward
vitaminwater (.792), perception of the health value of vitaminwater (.523), and how much the flavors are
liked (.547). The regression analysis shows that a feel good attitude, sweet craving and being physically
active are strong predictors of purchase intention (Appendix K). Survey 2 questions are in Appendix L.
Segmentation Analysis
In identifying target markets, we aimed for one that would be accessible and illustrate the basis for our
marketing strategies. We focused on the primary market of male and female 18-to-24 year olds whose
current vitaminwater consumption is down. These consumers are very important because vitaminwater
wants to build a relationship to continue throughout their life journey. The secondary target market is the
30-to-39 year olds, male and female, who consume vitaminwater due to being introduced to the beverage
as young adults. The 30-to-39 age group will also establish similar brand loyalty in their children.
Primary Target Market Analysis
i. Secondary and Primary Data Collection
The demographical information for the primary target market consists of single, 18-to-24 year old
populace. Those in this segment usually attend some type of schooling, either a university or a technical
college. According to the 2010 U.S. Census, there are 30,672,088 people who fit this demographic which
makes up 9.9 percent of the population of the United States. High school graduates are usually 18 years
old and are entering a new journey in life when they need to become more independent.
ii. Analyzing the Data
The segments described below were determined based on insight from secondary data research, results
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from qualitative and quantitative research and several brainstorming sessions. The brainstorming sessions
included the use of design techniques, such as the use of the empathy map. Images of this process can be
seen in Appendix M. The empathy map is used to develop the needs, fears, likes and dislikes of the target
market which leads to many things including what products and services they prefer to use. All of this
information was compiled to find a clear picture of our target market. We identified two separate segments
that have parallel characteristics from our primary target market, they are named the Gratified Guzzlers
and Social Sippers. All of the findings are based on data and common trends, specifically from in-depth
interviews, surveys and the brainstorming sessions.
iii. Similarities
The results from our findings show that both of these segments have little time and money and purchase
vitaminwater when convenient at convenience stores. They are concerned with their future and are
comfortable with using technology. At the same time they are critical of the information that they receive
through advertisements. They are also social and often share information through friend groups about
what products to purchase. These segments utilize public transportation and are often living on a budget
but still value brand name products. Another commonality is that they are faced with a lot of stress and
are often looking for a way to escape some of the struggles that they are facing by traveling with friends.
Often, these experiences or journeys are documented along the way with a mobile phone.
iv. Differences
Gratified Guzzler
Based on our analysis, Gratified Guzzlers love to drink vitaminwater more often than the Social Sippers
and they prefer the vitaminwater base drink. These Gratified Guzzlers tend to drink the vitaminwater
quickly, in one sitting, in contrast to the sippers. This segment is predominately male and are interested
in pursuing their own independent journey while using basic social media platforms such as Facebook
(sparingly) without needing constant support. They are active but health does not highly impact their
consumption choices. Gratified Guzzlers are happy with the taste of vitaminwater and they do not have a
strong opinion on being eco-friendly but acknowledge that it is important. Overall, Gratified Guzzlers are
independent, active, easily gratified with consumption options and have a low level of socially conscious
consumption.
Social Sipper
In contrast we found that Social Sippers like vitaminwater but will not drink the entire bottle in one
sitting, they will instead sip on it throughout the day. This segment prefers vitaminwater zero and the
vitaminwater zero drops and the individuals are predominately female. They are heavily connected to
multiple social media outlets to share their life journey with both friends and family. Social Sippers look
up to and spend time following the actions and opinions of celebrities, predominately through social
media. They want advice and input from others while living a relatively healthy and eco-friendly lifestyle.
These Social Sippers are concerned about their outward appearance online as well as in person. Overall,
Social Sippers are dependent on social media, influenced by trends and have a high level of socially
conscious consumption.
Secondary Target Market Analysis
The secondary market consists of 30-to-39 year olds, specifically parents with young children. They
were introduced to vitaminwater while they were younger and are loyal to the brand. This segment
usually buys vitaminwater from large stores like Walmart. It is important that they are not alienated by
marketing strategies targeted at the primary market. This segment is not as savvy with technology but are
still interested in it to a degree. These consumers will continue to be loyal to vitaminwater and encourage
their children to drink the beverage as well.
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Marketing Objectives
Marketing Plan and Strategies
The marketing objective is to increase sales of vitaminwater by 17% over the first three years. This
will be achieved with a 7% increase the first year of the campaign followed by 5% increase each year
after. vitaminwater will also increase their presence on social media by creating a Snapchat account and
increasing their current platforms including Facebook, Twitter and Instagram. Facebook page likes will
increase 100%, Twitter followers will increase by 200% and Instagram followers will increase by 300%.
Refer to Appendix C for current numbers of page likes and followers.
Key Issues Facing vitaminwater
There are three key issues that are currently facing vitaminwater based on the situational analysis. The
first is declining sales due to a limited amount of 18-to-24 year olds drinking vitaminwater. Next is that
consumers are choosing competition over vitaminwater due to lawsuits and consumers being unsure
about whether it is healthy or not. Finally, the inconsistency in the brand message is a key issue of why
vitaminwater is having troubles with sales.
Positioning
vitaminwater is the enhanced water beverage bringing you flavorful experiences, humor and rhythm
throughout your journey. vitaminwater is targeting 18-to-24 year old consumers who are currently
beginning a new phase in their journey. The flavorful experiences represent the colorfulness and large
variety of flavors that the beverage offers. The singer, Ariana Grande, and the events that we will
be offering will represent and enhance the image and experiences of loyal consumers. The humor is
incorporated in vitaminwater’s history of using comedy as a way to increase brand awareness. They will
continue to use humor through a continued partnership with comedian, Kevin Hart, and by using humor in
advertisements. The rhythm of vitaminwater is the commitment and connection that they have to music.
The use of music and concerts in the campaign of vitaminwater will be shown through singer Enrique
Iglesias. vitaminwater is with the consumer, keeping them hydrated on their journey by utilizing flavorful
experiences, humor and rhythm.
The slogan of the new campaign is, “Hydrate Your Journey.” Those in the target market are at a pivotal
part of their journey, either entering college or leaving college. They are having new experiences and
making new memories. Your journey is more than just related to college, people of every age are
constantly beginning and experiencing new journeys. Each one is different but vitaminwater can be there
through it all to hydrate you. vitaminwater will provide you with opportunities to enhance your journey
by offering fun events and ways to be involved with the brand. This new slogan is more relevant than
the current slogan but builds off the “Hydrate the Hustle” theme so as not to alienate current consumers.
The term ‘hustle’ has vague and confusing meanings and sometimes can evoke a negative connotation.
We found during the in-depth interviews and observation that it also makes consumers think of sports
and being “on the court.” The term ‘journey’ will help clarify that vitaminwater is the “off the court”
beverage and it is easier to translate into other languages.
Media Objectives
Media Plan
The main objective of our media plan is to reach our target audience through promotional tactics
and advertising with the goal of increasing the sales of vitaminwater. We will increase awareness
of the product within our primary target market while keeping our secondary target market in mind.
Implementing our marketing campaign will provide measurable results to ensure the product is being
advertised to its full potential.
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When the marketing plan is implemented we will focus our strategies on four different target cities:
Riverside, California; Kansas City, Missouri; San Antonio, Texas; and Charlotte, North Carolina. In all
four areas there is a large population of millennials and there are large universities located nearby in
order to reach the target market. Riverside, California is near Los Angeles, a destination city and a large
metropolitan area. Kansas City was chosen due to a large number of destination universities in the area
drawing in students from all over the country. San Antonio was chosen because of the large amount of
diversity, particularly Hispanics, in that area. Charlotte, North Carolina is a central location for both the
South and East Coast of the United States.
Media Strategies
Our media strategies are centered on reaching our primary and secondary target markets in the most
efficient way possible and within the $40,000,000 - $60,000,000 budget. It is estimated that there are
115,000,000 households in the United States that have television. For this reason, we are choosing to run
commercials informing consumers of the events vitaminwater is launching, as well as introducing the
changes that have been made to the product. There are over 300,000,000 mobile phone users across the
nation, which indicates that social media will be an effective way to reach our target market. Social media
will be highly utilized for our promotional events, including a Scavenger Hunt, label contest, concerts and
summer festival.
Our marketing campaign will focus on the four cities mentioned above in order to encompass four diverse
areas of the country. California and Texas are both designated market areas and contain the top markets
for media exposure. We will utilize primetime cable networks to reach our primary and secondary target
markets, as well as local channels that are significantly cheaper.
Our promotional campaign will be led by the slogan “Hydrate Your Journey.” It will begin in September
of 2015 when we will start informing consumers of the Scavenger Hunt taking place in October.
Beginning in November, we will launch marketing tactics for the concerts taking place in January.
February through April will include the label contest as well the beginning of promotions for the festival
in May. See Appendix N for a complete timeline of our events and Appendix O for a flowchart of the
marketing tactics.
Media Mix
Television alone has a 98% reach potential with high geographic flexibility and exposure frequency
opportunity. The channels we will focus on advertising are AMC, FX, and ABC Family. Our vehicles
include Mad Men, It’s Always Sunny in Philadelphia, and Pretty Little Liars respectively. These media
vehicles have been chosen due to the similarities of the viewers of these shows and our target market,
according to Advertising Age.
In addition to television advertisements, the commercials will be used as interstitial advertisements and
will be displayed at the beginning of YouTube music videos for Enrique Iglesias and Ariana Grande.
They will be adapted to be played on local radio stations and Spotify. This is an affordable way to reach
consumers.
Overall, YouTube is a very affordable yet effective way to attract the attention of our designated
markets. The commercials will also be played on vitaminwater’s microsite and social media sites. All
advertisements will be humorous in order to grab our target market’s attention and continue the comical
trend that vitaminwater has used.
10
Media Budget
Table 1: Broadcast Media Budget
Broadcast
Cable Television
Kansas City,
Missouri
941,980
Riverside,
California
1,604,754
Television
Households*
Number of
200
200
30 second
Commericials**
Total
$5,000,000
$5,000,000
*(Nielsen, 2013)
**1 30sec Commercial= $25,000; CPM= $26
San Antonio,
Texas
906,210
Charlotte,
Total
North Carolina
1,157,920
4,610,864
200
200
800
$5,000,000
$5,000,000
$20,000,000
The total budget for broadcast media marketing is $20,000,000, as shown in Table 1. Commercials will
be run on cable television and they will be run at an increased frequency around the time of events.
There will be a total of 800 commercials run, with 200 running in each major market. There will be three
commercials produced: two including a celebrity, $600,000 each, and one without a celebrity, $300,000.
This leads to a total production cost of $1,500,000. The three commercials will be run at different times
throughout the campaign.
Table 2: Digital Media Budget
Digital
CPM
Spotify
YouTube
$10.00
$7.60
Cost
$10,000
$15,000
Total $25,000
As shown in Table 2, the total budget for the digital media marketing is $25,000. We will utilize the
digital strategy by having interstitial advertisements run for two weeks before each event. There are four
major events: the Scavenger Hunt, concerts, label contest and Revive Festival. This leads to a total of
eight weeks of interstitial advertisements. Spotify is an online music site which will cost about $10,000.
YouTube will cost $15,000 which was calculated based on an average of 1 million views per week.
The budget, in Table 3, comprises all costs incurred to vitaminwater, including traditional and digital
media promotions, celebrity endorsements, events, and packaging changes.
Media Flowchart
See Appendix P for a flowchart of the media plan.
11
Table 3: Total Budget
Cable Television
$20,000,000
Commercial Production
$1,500,000
Digital Media
$25,000
Sampling
$50,000
Coupon Prizes and Promotions
$725,000
Fountain Drinks Installation
$50,000
Outdoor Advertisement
$1,000,000
Celebrity Endorsement
$3,000,000
Brand Ambassador
$100,000
Philanthropic Cause
$7,500,000
Scavenger Hunt
$10,000
Hydrate the New Year Concert
$1,000,000
Revive Festival
$2,000,000
Label Contest
$500,000
Packaging Changes
$5,000,000
Microsite
$60,000
Interns
$500,000
Snapchat
$100,000
Nielsen On-Line Brand Effect Study
$500,000
Total Budget
$43,620,000
Sales Promotions
Advertising and Promotional Campaign
i. Sampling$50,000
We will be handing out free samples of vitaminwater on University campuses in our target cities with
Coca-Cola partnerships. This strategy will generate awareness within our target market of the brand
and more importantly the promotions such as concerts, competitions and events. We will create avenues
for advertising within universities by partnering with college organizations from the schools such as
the American Marketing Association. This will create opportunities that would not be possible without
affiliation with the colleges. Members will distribute flyers in student centers, residential housing, etc.
Students will set up a promotional booth during large campus events and will provide activities, hand
out free samples, and promote the current contest that vitaminwater is holding. There are approximately
65,000 college students in each of these areas. Our goal is to spread awareness to at least 75% of these
students. Incentives would be offered to each of the student organizations with a donation of $1,000. We
will choose popular organizations from the largest schools in each city. Interns will also be hired to help
distribute the samples.
ii. Coupons
$725,000
Coupons will be used for the Scavenger Hunt as an incentive to increase participation. The coupons will
start out with a discount on one bottle of vitaminwater and slowly become a larger prize, as points are
awarded. Prizes will include $5 Subway gift cards and free downloads of Ariana Grande and Enrique
Iglesias songs. $175,000 of the budget will be for Scavenger Hunt prizes and discounts. Coupons will also
serve as an incentive to persuade the commercial viewers to visit the microsite. A promotional code will
be displayed on the screen and the viewer has 15 minutes after the commercial to enter the code on the
microsite to win electronic coupons for vitaminwater products. The total cost of this will be $150,000.
12
In our target cities, we will have extra point of purchase incentives to encourage people to buy
vitaminwater. For example providing additional coupons at convenience stores near University campuses.
vitaminwater sells for $1.09 per bottle. By raising the price to $1.59 and providing 50 cent coupons, the
consumer will feel they are getting more value out of their purchase. Getting the best value out of a dollar
was a major trend that the general population is concerned about. These coupons will be available at the
point of purchase, through email, and with QR codes. Compared to the competition, vitaminwater will
appear to be a higher quality beverage that they are getting at a low price. $250,000 will go towards the
in-store coupon promotions.
Many people are not aware of the fact that vitaminwater has drops. To promote this product and
encourage people to purchase the drops, vitaminwater will partner with the Camelbak water bottle brand
for a bundle promotion. The Camelbak water bottle was chosen because the brand embodies the active,
environmentally friendly image of the new campaign. It is also a popular brand among our target market,
especially the Social Sippers. When the consumer buys a Camelbak water bottle, they will receive a one
free package of drops. The promotion for this will primarily be in-store signage and package coupons.
$150,000 will be used for the Camelbak partnership.
iii. Fountain Drinks$50,000
To provide millennials with easy access to the product and introduce more exposure of the product,
vitaminwater fountain drinks will be installed in each of the universities that have Coca-Cola partnerships
in our target locations. The colleges in our target locations that do not have Coca-Cola partnerships will
have the fountains installed in the university’s Subways, due to our partnership with them. Promotions
will be implemented such as, getting a discount on meals when pairing with a vitaminwater fountain
drink.
iv. Outdoor Advertisements
$1,000,000
We will place advertisements on public transportation such as buses and light rails. Public transportation
will have high visibility and will be selectively located near universities and other locations with a high
density of our primary market.
Public Relations
i. Celebrity Endorsements
$3,000,000
The musical celebrity faces of this campaign will be Ariana Grande and Enrique Iglesias. Both of these
artists will appeal to both target markets and the brand because they are both popular celebrities that target
a broad audience, specifically the growing Hispanic populace. Ariana Grande is appealing to the younger
target market and relates to our brand because she is seen as colorful, fun and energetic. She embodies
our Social Sipper . Enrique attracts the secondary target market and the Gratified Guzzlers. He is very
popular in California and Texas and brings in large crowds to his concerts. Kevin Hart will also be used in
the campaign, specifically as the host of the festival, in order to continue their existing image and to have
some consistency with current marketing tactics. See Appendix Q for photos of the celebrities.
ii. Brand Ambassador
$100,000
Along with having celebrity faces for the new campaign, vitaminwater will also find a millennial that
embodies the brand’s image. Having a brand ambassador who embodies the slogan will create a strong
relationship with the target market. This person will be the target market’s age, participates in similar dayto-day activities and will be working towards many of the same goals. vitaminwater will be accepting
applications from June 2016 until the end of July 2016. Individuals can apply by submitting a short essay
to the microsite. In the essay, each participant will answer the question, “How do I exemplify the slogan,
‘Hydrate Your Journey’, as defined in vitaminwater’s new campaign.” The winner will be announced
in August and will hold the title of the vitaminwater, “Band Ambassador” for one year. They will also
win an all-expense paid trip to the next year’s Revive Festival, complete with VIP tickets and backstage
passes.
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iii. Philanthropic Cause
$7,500,000
vitaminwater will be supporting a philanthropic environmental cause by donating to World Wide
Institute. World Wide Institute is a non-profit that is dedicated to helping the environment. This will
exemplify that vitaminwater is dedicated to the environment, not only by changing the bottle but by
donating and giving back. Environmental awareness is a prominent trend, and it is appealing to the Social
Sippers. This event will also be used to improve vitaminwater’s image after all of the negative publicity it
gained from accusations and legal actions regarding misleading health facts. During 2016, one percent of
all sales will be donated to World Wide Institute.
Scavenger Hunt $10,000
i. Strategies and Execution
The vitaminwater Scavenger Hunt will be a seven day contest during the final week of October,
Halloween weekend. These dates was chosen due to its popularity among millennials. Based on our
research, many of the people in our target market dress up, and are highly involved in Halloween related
events throughout October. The microsite will provide instructions on how to sign up. Each day will be
a different challenge in which individuals will post a photo or video. After each post there will be the
option to share it on Twitter and Facebook. Each of the challenges can be completed any day throughout
the week, but they all must be completed by Sunday, November 1 at 11:59 pm Eastern Time. The points
will add up to various vitaminwater coupons. The extra point options and the more creative people get,
the more points they will be awarded. Each challenge will earn participants 10 points, with an additional
five points for completing the challenge on the correct day. If vitaminwater is included in the picture
or video, an additional five points will be awarded. Two more points will be awarded by sharing the
pictures or videos on Twittter and Facebook. Refer to Appendix R for the complete details on all of the
challenges. The goosechase app will be used to track participants’ points and will cost vitaminwater
roughly $1,000.
Concerts and Festival
i. Hydrate for the New Year Concert $1,000,000
The New Year of 2016 will be brought in with a concert from vitaminwater. The concert will serve to
increase exposure of vitaminwater’s new brand message and new celebrity endorsers, Enrique Iglesias
and Ariana Grande. There will be three concerts taking place the first week of the New Year in January
2016. They will take place in three of our target cities: Riverside, California; San Antonio, Texas; and
Charlotte, North Carolina. Top winners of the Scavenger Hunt will receive free admission to attend and
the label contest will be announced during the concerts. Above all else, it will exemplify vitaminwater’s
new twist on “Hydrate Your Journey.” The concert will provide consumers a chance to enjoy themselves
and prepare for the challenges of their upcoming journey while ringing in the New Year. Reference the
Digital Marketing section, to see how Twitter and Facebook will be utilized to promote this event.
ii. Revive Festival
$2,000,000
There will be a vitaminwater Revive Festival during the first week of June in Riverside, California. The
festival’s purpose is to ‘revive’ the target audience after a long work and school year. It will also be an
introduction into summer and will appeal to the target market who view summer as a time to vacation,
road trip, and have a good time. The Revive Festival will be portrayed as the “hot spot” for millennials
to attend. At the festival there will be music by Ariana Grande and Enrique Iglesias and it will be hosted
by comedian Kevin Hart. There will also be a foam party, paint party, giant water slides, games and other
activities. The Digital Marketing section includes information about how this event will be promoted via
social media and the website.
14
Label Contest and Packaging
i. Strategies for Contest
$500,000
The Label Contest will be kicked off with the concerts in January. Entries will be submitted through
February and March and the top twenty finalists will be announced at the end of March. The finalists will
be decided by vitaminwater judges. The month of April will include voting for the top design through
the microsite. After voting, there will be the option to share your favorite design on Facebook and Twitter
to help spread the word of the contest. The winner of the label contest will be revealed on stage at the
Revive Festival. The winner will receive an all-expense paid trip to the festival and will get free VIP
tickets and backstage passes to meet Ariana Grande and Enrique Iglesias. Scholarships of $5,000-$10,000
will also be awarded to the top five winners in the contest.
A label contest campaign will be implemented to gain interest in vitaminwater with millennials and our
secondary target market and to assist in creating a unique style. The participants will feel as though they
have contributed to the launching of vitaminwater’s new campaign, in return creating loyalty to the
product. Allowing anyone to vote on the best label creates a sense of contribution and involvement in the
voters as well. The criteria for the contest will portray the image of vitaminwater. The main points will
be to include vitaminwater’s connection with music, humor and the new slogan “Hydrate Your Journey”.
The criteria will also include a template of the label which displays the areas that can be changed. This
will serve to help control the placement of the logo, nutritional facts and contact information. The design
with the most votes will ultimately design a slightly unique label for each flavor and zero option as to
allow people to easily tell them apart. There will be strict criteria for the entries, criteria details and the
label template can be seen in Appendix S.
ii. Packaging Changes
$5,000,000
As well as changing the label, the bottle will also be altered to become more eco-friendly. The ecofriendly bottle will appeal to the Social Sippers due to their current interest in “green” trends. After much
discussion and research it was decided that changing the label, thickness of the plastic, and cap color
would be the most effective option. Changing the label will give the bottle a new and cleaner look. It is
not necessary to change the bottle design because of the high costs associated with it including hiring a
designer, building new machinery and in-store racks. Only the thickness of the bottle will be altered. By
creating a large amount of attention to the label through the contest, we should be able to achieve the
same effect without these extreme costs. Changing labels is relatively inexpensive, and this approach does
not require paying for a graphic designer to create a new label.
Colored caps will also be implemented, as it was highly suggested during our focus groups and surveys.
vitaminwater as a brand is colorful and the color of the drink itself is vibrant. To add individuality to the
different flavors offered, the color of the caps will be changed to match the color of the flavor. The caps
will still be transparent and will be tinted to reflect the flavor’s unique color. This is a low cost option to
bring attention to vitaminwater’s new campaign and appeal to the consumer.
Commercials $21,500,000
There will be a total of three 30 second commercials throughout the campaign. One will include Enrique
Iglesias and is detailed in Appendix T. The second commercial will include Ariana Grande and the third
will be generic to represent vitaminwater’s new campaign as a whole. The commercials will show
that vitaminwater has recreated itself and that there are a lot of fun events and competitions happening
in the upcoming year, without specifically mentioning any of them. This will allow the commercial
to run all year long. The commercials will be designed to encourage the viewer to visit the microsite.
Each commercial will incorporate the new slogan, “Hydrate Your Journey,” and show the journey that
individuals embark on. The cost for the commercials is outlined in the Media section.
15
Extra Incentive
To encourage participation in all events and to have an underlying strategy across all promotions,
discounts on the Revive Festival tickets will be rewarded to people who partake in each event. Also, the
concert will be free to attend for those who earn at least 70 points in the Scavenger Hunt. There will be
monetary discounts on the Revive Festival ticket price for participating in the Scavenger Hunt, attending
a concert, following vitaminwater on all social media outlets, and voting for the label contest. Admission
to the festival will be free for those who participated in each of the previously mentioned activities. VIP
camping space will be awarded to those who submit a design for the new label contest.
Website and Microsite
Digital Marketing
Website
The current website for vitaminwater will continue to be used for this campaign but will be updated
to reflect the target market of 18-to-24 year old Social Sippers and Gratified Guzzlers. Information on
the beverage, current events and social media will be included in the website. The design currently is
innovative and new, but the content under the #howihustle will be changed to reflect the new slogan. The
website will also include live feeds from the social media platforms. An addition to the current website
is the option on the homepage that leads a visitor off the website to the microsite promoting all the future
events. This will give the visitor a way to quickly understand the events and promotions that are being
implemented and how they can get involved. The microsite will be colorful with pictures of upcoming
events and videos featuring Ariana Grande, Enrique Iglesias and Kevin Hart. Also included in the
microsite will be our television advertisements and links to our social media platforms.
Microsite$60,000
The microsite will integrate our campaign by informing viewers of the upcoming events and direct them
on how to participate in the current activity. There will be a link to the goosechase app for Scavenger
Hunt participants. In April, during the label contest, voting will take place on the microsite. We would like
the microsite to have over one million views before the January concerts.
i. The Scavenger Hunt participants will be directed from the microsite to the goosecahse app. This app
is where they will initially post their photos to gain points. The winners of the Scavenger Hunt will be
announced on the microsite as well as the social media outlets.
ii. Concert promotion will begin as soon as the Scavenger Hunt is over and will be the main focus on the
website and microsite. The tagline that will be promoted is Hydrate for the New Year.
iii. Label Contest designs will be submitted to the microsite, where the top designs will be voted on
beginning the month of April.
iv. The Revive festival will be promoted heavily throughout April and May over the website and
integrated with the other event advertisements on the microsite.
v. Television commercials will be played on vitaminwater’s microsite and social media sites. The
commercials will end with mentioning our new microsite and encourage the viewer to visit in order to get
exclusive information on the new vitaminwater events and competitions coming up.
vi. For the Brand Ambassador contest vitaminwater will be accepting applications through the microsite.
Individuals can apply by submitting a short essay to the microsite.
Internships
$500,000
Maintaining the social media platforms is important to the new “Hydrate Your Journey” campaign. In
order to keep these updated, college students will be hired to be interns to keep the social media content
updated. Interns will be chosen from universities in our target cities, Riverside, Kansas City, San Antonio
and Charlotte.
16
Twitter and Facebook
Twitter is the social media website to generate buzz around the product and listen to the consumers’
comments and respond to what the fans want out of the product. Twitter will receive a minimum of 500
retweets per post made. Facebook will be used to increase audience engagement and sharing to enforce
loyalty. Fans can ‘like’ vitaminwater’s posts, invite their Facebook friends to like their page, and share
the upcoming vitaminwater events. The goal for a Facebook post is to have a minimum of 200 shares.
Twitter and Facebook platforms for vitaminwater are free of cost.
i. Each of vitaminwater’s social media outlets will hype up the Scavenger Hunt by promoting it
September 2015 through October, prior to the beginning of the seven day challenge. The prizes for
participating and the grand prize will be emphasized through Twitter, Instagram, and Facebook posts.
The Scavenger Hunt participants will have the option to share their posts through Twitter and Facebook
to gain more points. The vitaminwater account will post the daily challenge on their social media outlets
each day to encourage their audience to participate. To support the message “Hydrate Your Journey”
vitaminwater will make posts with tips to help along your life journey.
ii. Concert promotion will begin as soon as the Scavenger Hunt is over and will be the main focus on the
website and microsite. The tagline that will be promoted is “Hydrate for the New Year”. Photos of one of
the vitaminwater bottles and a New Year’s resolution that goes with the flavor name will be a theme of
Facebook posts. For example, there is a bottle flavored focus. A photo of the bottle and a question asking
fans, “What will you focus on this year?”
iii. After voting for the Label Contest, there will be the option to share your favorite design on Facebook
or Twitter to help spread the word of the contest.
iv. The Revive Festival will be heavily promoted throughout April and May over social media and the
website. Twitter will engage fans by posting photos of the possible events happening at the festival. For
example, they may post a photo of a paint party and a foam party, and then ask the Twitter audience which
event they would prefer to transpire at the festival. After the fans respond to the tweet, vitaminwater will
answer that both events will be happening, pleasing all fans no matter how they voted. Facebook will post
photos of the Revive Festival as it is happening.
v. The television commercials will also be played on vitaminwater’s microsite and social media sites. All
advertisements will be humorous in order to grab our target markets’ attention and to continue the comical
theme vitaminwater was previously using.
YouTube and Online Radio
$25,000
Interstitial advertisements will be played on YouTube and Spotify using the same commercials that are
used for television and adapted for online radio. They will be shown before music videos for Enrique
Iglesias and Ariana Grande two weeks before each event. These interstitial advertisements will capture the
listeners’ full attention because they are unable to continue listening until after the ad is finished. This is
also an affordable way to reach consumers, costs can be found in the Media section.
Email
In an effort to spread the word about the concerts more effectively we will work with clubs, fraternities,
sororities and organizations on University campuses to send an email out to their students. Our goal is
to have 75% of the emails sent are opened and that there is an increased amount of participation from
members of these organizations. The campus will send the email, so students are more likely to open it
when they trust the source.
Instagram
Instagram is a social media platform vitaminwater will utilize to share eye-catching photos promoting
their product. This platform strongly appeals to the Social Sippers because they utilize social media
17
often. The “Hydrate Your Journey” slogan will be shown throughout the Instagram posts. Instagram will
be used to post photos of the ongoing events and contests while including Ariana Grande, Kevin Hart and
Enrique Iglesias in content. The content will be humorous in order to grab the target market’s attention as
well as continue their current strategy. vitaminwater currently is receiving around 200 likes on their posts,
the goal is to raise that number to 600 likes per post.
i. During the Scavenger Hunt, Concert, and Revive Festival vitaminwater will post the daily challenge
on their Instagram feed to increase participation. Fans may tag vitaminwater in their photos from these
events and they will appear under vitaminwater’s profile on Instagram.
Snapchat
$100,000
Snapchat is a popular platform for the individuals in our primary target market and vitaminwater will
use sponsored stories as well as live stories. The sponsored story will have high engagement because it
is added to the story feed of every person who has a Snapchat account. Having commercials on Snapchat
is a relatively new feature, so users are not fed up with it yet and will be more accepting of watching a
commercial on their story feed. The live story allows Snapchat users in the area to add their own ‘snaps’
to the vitaminwater live story. The objective is to have 90% of the 26 million Snapchat users in the
United States view each of our 24 hour sponsored stories.
i. During the Revive Festival there will be a live Snapchat story, which will allow for participating
individuals to include their snap into vitaminwater’s sponsored Snapchat story. This way people who
are at the festival can be a part of vitaminwater and those who are not at the festival still know what is
happening.
Measuring Effectiveness
Before the campaign, we will conduct a pre-test on our ideas by using a survey to gauge the
responsiveness of the campaign. Eight weeks into the campaign, the Scavenger Hunt, we will survey the
consumers in our target market again to see how their perception of the brand has changed. The results
will affect the campaign moving forward. We will survey consumers again in January and in May to
gauge the effectiveness of the campaign and make adjustments as needed. We will survey consumers
who participated in the vitaminwater events as well as consumers who have seen the advertisements and
promotions but have not actively participated.
We will measure the effectiveness of our traditional marketing based on how many people attend and
participate in events and the exposure to promotions. We will keep track of how many people are
attending events, such as the concerts and the festival, as well as how many people are participating in
the other events, including the Scavenger Hunt and Label Contest. After events we will track the sales
volume purchased, specifically in the target geographic areas. To measure the effectiveness of Ariana
Grande and Enrique Iglesias we will survey consumers who will rate on a Likert Scale before and
throughout the campaign to gauge how perceptions have changed. The return on celebrity investment will
also be measured using revenue minus the cost of celebrity divided by cost of celebrity. We will measure
how many people are being exposed to the promotions that vitaminwater is running using rating points
and cost per thousand impressions.
We will be measuring the effectiveness of all digital marketing outlets by calculating the amount of page
views and the click through rate on the website, microsite, YouTube and Spotify. The social media sites
in which vitaminwater have an account will be measured by the amount of shares, likes, and retweets
each post receives. The focus for Facebook posts is the amount of shares and for Twitter it is retweets.
This is because when users retweet and share it reaches the largest audience possible. Instagram has the
option of comments and likes; however not every Instagram post requests a comment, thus likes are
18
to measure the effectiveness. A Nielsen On-Line Brand Effect (OBE) Study will also be conducted. This
study is used by large companies and measure the effect the online campaign has on purchase intentions.
The test focuses on effectiveness and will be conducted in January 2017 and if the results are positive we
will continue on as planned. If the results are negative the campaign will be re-evaluated. The estimated
cost of this is $500,000.
Sales Forecast
The three year sales forecast is based on a .0125% increase during 2015 and a 7% increase during
2016 and a 5% increase from 2017 through 2018. There will be a 7% increase during the first year
of the campaign because that is when it will be new. There is a lot of competition in the market and
vitaminwater already has 62% of the market share. Also, the enhanced flavored water industry in general
is currently in a decline. By implementing the marketing tactics vitaminwater will see a 7% increase the
first year followed by a 5% sales increase each year after.
As seen in Table 4, the total sales increase from $692,773,765 to $ 834,757,509 after implementing
the marketing tactics. This will lead to a 17.01% net sales increase. Without the marketing tactics
vitaminwater would see a slight drop in sales instead of the increase, as seen in Graph 1. We will measure
the effectiveness of this campaign by comparing sales and brand awareness at the end of every year. If a
17% increase in sales is not achieved by the end of 2018, we will re-evaluate the campaign.
Table 4: Sales Forecast
Graph 1: Sales Forecast Graph
19
References
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Appendix A
SWOT MATRIX
STRENGTHS
WEAKNESSES
-Diverse extensions and flavors
-Negatively viewed as a sugar-loaded drink
-Resources under Coca-Cola ownership
-Brand confusion
-Unique comedic packaging and music connection -Misleading health claims
OPPORTUNITIES
-Non eco-friendly packaging
THREATS
-Health conscious trend
-Large amount of competition
-Partner with health conscious brands
-New entrants may enter the market
-Increasing Digital Media
-Brand image/lawsuit
-Eco-friendly Trend
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Appendix B
TOW MATRIX
The TOW Matrix was created based on the SWOT Analysis and reveals four strategies for vitaminwater
based on the SWOT Analysis.
vitaminwater TOW Matrix
O
External Opportunities
T
External Threats
-Health conscious trend
-Large amount of competition
-Partner with health conscious
brands
-New entrants may enter the
market
-Increasing Digital Media
-Brand image/lawsuit
-Eco-friendly Trend
S
Internal Strengths
-Plentiful flavor options
-Under Coca-Cola ownership
-Generally healthier than soda
-Unique packaging and
advertising
W
Internal Weaknesses
-Negatively viewed as a sugarloaded drink
-Brand confusion
-Misleading health claims
-Non eco-friendly packaging
SO
“Maxi-Maxi” Strategy
Explain the benefits of
vitaminwater and how they
can correlate with increasingly
health-conscious and ecofriendly consumers.
Promote vitaminwater as a
trusted brand by capitalizing
on their unique advertising
approach.
WO
“Mini-Maxi” Strategy
Partner with health and
environmentally conscious
companies to improve the image
of vitaminwater.
Utilize digital media to further
to establish the identity of
vitaminwater.
ST
“Maxi-Mini” Strategy
Utilize the multiple flavor
options to stand out against
competitors and gain a larger
consumer base.
Create accurate content on
packaging and advertisements to
regain the trust of consumers.
WT
“Mini-Mini” Strategy
Eliminate any misleading
content or health claims and
move toward an honest and
straightforward marketing
strategy.
Look toward eco-friendly
packaging to challenge
competitors.
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Appendix C
Comparing vitaminwater to direct competitiors, SoBe Life Water and Propel Water
Enhanced Water vitaminwater
Parent
Coca Cola Company
Company
Price
6 16.9oz: $4.99
8 12oz: $4.99
24 20oz: $23.99
12 20oz: $12.58
Zero Calorie
Yes, vitaminwater zero
Option
Targeting
18-to-24
Social Media
Facebook: 4,100,000 likes
Twitter: 128,000 followers
Instagram: 11,895 followers
Brand
vitaminwater has a
Recognition
strong music connection
and comedic approach
SoBe Life Water
Pepsi Co.
Propel Water
Pepsi Co. (Gatorade)
1 20oz: $1.02
6 16.9oz: $3.39
1 20oz: $1.09
Yes
Yes (all are zero calorie)
18-to-24
Over 25
822,200 likes
9,400 followers
N/A
SoBe has been
utilizing their new
twisted bottle design
to set them apart
Viewed as an edgy
and appealing drink
because of their
advertising
511,000 likes
3,500 followers
N/A
Propel had a unique
cap on the bottle but
changed it, known for
propel powder packs
Propel is positioning
itself as a beverage
for the gym, or while
causally working out
daily
Low because of
limited visibility
and the widespread
use of Gatorade and
other sports drinks for
working out
Is part of Gatorade,
promoted as the water to
drink while working out
Competitive
Strategy
Due to declining sales
vitaminwater competes
on price and provides
more product variety
Growth
Potential
High because there is
a lot of variety, still
missing out on the
opportunity to reach
the18-to-24 market
Medium because of
limited variety within
SoBe but an easily
recognizable brand
Competitive
Advantage
Perceived as the leader
in the flavored water
category with a market
share of 62%
Viewed as an edgy
and appealing drink
because of their
advertising
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Appendix D
Number of Respondents in Each Age Segment
Appendix E
Ethnicity of Survey Respondents
Appendix F
Gender of Survey Respondents
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Appendix G
Types of Beverages Consumed
Appendix H
Distribution Preference to Purchase Non-Alcoholic Beverages
Appendix I
Classification of vitaminwater by Respondents
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Descriptive Analysis of Means from Survey 2.
Appendix J
Appendix K
We conducted a linear regression analysis using the stepwise procedure. We wanted to test which of our
independent variables helped predict purchase intention. All variables were included in the analysis, and
were allowed to enter and fall out of the regression model based on their significance level. The regression
analysis shows that a feel good attitude, sweet craving and being physically active are strong predictors of
purchase intention of vitaminwater.
Purchase Intention
1.0
0.8
0.686
0.6
0.4
0.2
0.195
0.176
Sweet Craving
Physically Active
0.0
Feel Good Attitude
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Appendix L
These are the questions included on Survey 2 without demographical information. Respondents rated
each question based on a Likert Scale.
1) I would purchase vitaminwater
2) I feel good about drinking vitaminwater
3) I consider vitaminwater as healthy
4) When I drink vitaminwater I am getting my daily vitamins
5) I drink vitaminwater in place of water
6) I consider vitaminwater to be a sports drink
7) I drink vitaminwater while being physically active
8) I consider vitaminwaterto have artificial flavors and/or taurine
9) I like the flavors vitaminwater offers
10) I drink vitaminwater when I want something sweet
11) I look up nutrition facts on all my food and drink
12) I would feel guilty if I didn’t recycle
13) I live a healthy lifestyle
14) The word “hustle” has a positive connotation
15) Social media influences my decisions on what I consume
16) I like to listen to pop music
17) I like to listen to country music
18) I like to listen to rap music
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Appendix M
Photos depicting the brainstorming process to define our target market.
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Appendix N
The timeline for the marketing campaign.
Events
2015 September
October
November
December
2016 January
February
March
April
May
June
July
August
September
October
November
December
Scavenger Hunt
Concert
Festival
Scavenger Hunt
Contests
Promotions
Scavenger Hunt
Scavenger Hunt
Concert
Concert
Label
Label Contest
Label Contest
Label Contest
Label Contest
Label Contest
Label/Festival
Festival
Brand Ambassador Festival
Brand Ambassador
Brand Ambassador
Scavenger Hunt
Scavenger Hunt
Concert
Concert
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Marketing Tactics Flowchart
Appendix O
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Appendix P
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Appendix Q
The celebrities endorsers for vitaminwater are Ariana Grande, Enrique Iglesias and Kevin Hart.
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Appendix R
Scavenger Hunt Challenges
Day
Daily Challenge
#MeetonMonday
Take a video with people you meet
that can say “Hydrate Your Journey”
in another language. The video
requires a minimum of 2 different
languages, each from a different
person
#TravelTuesday
Share a photo of the more ecofriendly
route you took today. Instead of
driving try to walk, ride the bus,
carpool, or bike to your destination.
#WorkforitWednesday
What are you working towards and
what motivates you to stay focused on
your goal? Create a video raping or
singing to a song that motivates you
to keep working hard throughout your
journey.
#ThoughtfulThursday
Choose a random act of kindness.
Take a picture or video of a
thoughtful act towards someone or
giving back to the community. For
example participate in a walk/run
for charity, volunteering, or simply
lending a helping hand.
#FinallyFriday
Manage your time. Make time for
fun. Take a break from the work
attire and dress up. Give us your best
Hawaiian-themed outfit.
#SpookySaturday
Happy Halloween! This is your day to
be whoever you want to be. Dress up
and have a blast!
#SuccessfulSunday
Set goals to achieve dreams in
your journey. What is your biggest
accomplishment? Write it down and
share it.
Extra Points
5 per language
Explanation
Incorporates the
vast diversity in
America.
5 for having a
friend or two
join you
Appeals to social
sippers and
ecofriendly trend.
10 if a musical
instrument is
played.
Promotes
vitaminwater’s
image/slogan.
10 for each
additional
captured good
deed.
Exemplifies
vitaminwater’s
new focus on
service for
the world and
environment.
5 for giving your Encourages
vitaminwater a time for a break
tropical look.
during the
journey.
10 for dressing
High
up your
participation
vitaminwater
expected because
bottle.
of Halloween.
Up to 20 if you
Relates to
draw it, paint
vitaminwater’s
it, sculpt it, use
new slogan,
food or another “Hydrate Your
medium.
Journey.”
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Appendix S
The label template that participants of the label contest would be required to use.
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Commercial Script- 30 Seconds
Appendix T
Commercial 1 will star the new celebrity endorser, Enrique Iglesias, while embodying vitaminwater’s
new slogan, “Hydrate Your Journey”, and portraying a meaningful yet tastefully humorous vibe.
Scene One: shows the silhouette of a toddler and a father in front of the bright lights of the paparazzi
and screaming fans. Time elapses showing the toddle silhouette grow into his teens. The paparazzi and
fans close in on the father. Enrique sneaks away from the crowd, and with a determined smile on his face,
heads off.
Scene Two: Enrique signs the contract, and the shot quickly changes and climaxes to a handshake with
the agent, than to his record being distributed to millions, and finally to the silhouette of a star in front of
paparazzi and screaming fans. Enrique’s mother and father are watching the scene on their television. The
camera shot circles around the star and reveals Enrique’s face.
Flashing Scenes: The scene flashes through shots of him playing in Miami restaurants, auditioning and
being rejected.
Enrique Voiceover: “My journey was an uphill battle and I couldn’t have made it this far, if I didn’t take
time to enjoy the climb.”
Scene Three: Suddenly it all stops and there is silence as Enrique stares blankly at all the world around
him. The noise and chaos comes back and several of his friends are before him and say, “Come on man,
let’s go!”
Enrique Voiceover: “Give time for yourself.”
Flashing Scenes:
Enrique playing a recreational sport with his friends
“Relax.” Enrique relaxing on his boat with his girlfriend
“Prepare.” Enrique is back stage at a concert laughing
“Rejuvenate.” Enrique drinks vitaminwater while standing on the side of a large stage with thousands of screaming fans.
“Hydrate Your Journey” Enrique looks into the camera and smiles.
Scene Four: Another performer is heard saying “thank you!” to the fans. As Enrique walks on stage
Ariana Grande walks off. He slips the bottle into her hand and heads out into the lights, the crowd erupts
as he walks on stage. Ariana looks up from the bottle, smiles at the camera, and winks.
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