Creative Brief Client: Campbell Soup Company (V8 Division) Submitted By: Joshua Antonio Morales Date: August 9, 2012 Table of Contents 2 Project Overview 3 Category Review 4 Company Portfolio 8 Competition: Redbull 10 Competition: Monster 12 Competition: Rockstar 16 Target Audience 20 Observations and Conclusions 20 Business Objectives and Design Strategy 22 References Project Overview Phase Summary Background Phase 1: Project Orientation Campbell Soup Company is one of the largest distributors of beverage and food products in the world. Under the corporation is the V8 product line. V8 is an individual product brand of beverages that fall under the umbrella organization of Campbell Soup Company. The V8 product line has been in the market for over 75 years, positioned as a convenient healthy beverage. Taste has changed over time with an ever increasing demand in the market place for convenience and lifestyle adaption. Establish Parameters for project. Project Overview Campbell Soup Company has decided to expand its market share in the beverage industry by developing an innovative new energy drink through the V8® product line called V8® Fusion + Energy. The challenge that the Campbell Soup Company will find difficult is how to break into this market. The company has never ventured into this specialized drink sector before and the competition appears to have a strong following at the moment. Phase 2: Research & Discovery Research and analyze industry company, competition, and target audience. Phase 3: The Marketing Brief Deliver final marketing brief, with established plan of action. Phase 4: Creative Exploration Explore ideas relevant to research, filter down to most effective approaches. Present for client assessment. Phase 5: Creative Refinement Edit and refine final solutions. Present for client’s final assessment. Phase 6: Creative Implementation Production of final campaign and analysis of trends and market shifts during campaign lifetime. Category Review Level: National (United States) Business to Consumer Competition Overview Currently there are more than 200 different brands of energy drinks in the United States with over 300 varieties/flavors. 70 percent of the market is dominated by only three competitors Redbull, Monster, and Rockstar. The rest are miscellaneous brand accounts for less than 5 percent of the energy drink market. Current Trends Some growing trends in the energy drink industry are as follows: • Juice Hybrids (enhances flavoring) • Larger Container Sizes • Multi Packs • Targeting Niche Submarkets such as women or extreme sport enthusiasts • Increased promotion of “Natural” or “Healthy” qualities • Growing increase of health-conscious consumers • Cross Promotional Tactics (X-Games, NASCAR) 2 3 Company Portfolio Brand Portfolio V8 Brand Strategy V8 Marketing Strategy The Campbell Soup Company has quickly amassed a diverse brand portfolio under its wing which includes: Campbell’s Soups, Pace® Sauces, Pepperidge Farm, Prego®, Swanson®, and V8. The V8® brand was acquired in 1948 and it has since become the leading vegetable juice in the United States. V8® acquired its name due to its eight vegetable blends. The mission of the V8® brand is to help more people get the recommended number of vegetable servings they need every day. V8® is Campbell’s fundamental wellness brand of beverages. The V8 product line has been in the market for over 75 years, positioned as the convenient healthy beverage. The products on the shelves at the moment are V8 100% Vegetable Juices, V8 Splash, Diet V8 Splash, V8 Splash Smoothies, V8 Fusion, V8 Fusion Light, V8 Fusion Smoothies, and V8 Soup. There is also V8 Energy Shots, but the product has only been released in strictly targeted areas within the United States; it is not yet for sale nationwide. Due to V8®’s long standing as a wellness brand it is at a strategic advantage for product line expansion as consumers’ are increasing their focus on health and wellness. The current marketing strategy of the V8® is very concentrated on the use of social media and promotions through their website. So far V8® has only been utilizing Facebook as a driving force of promotion to their consumer base. It is through Facebook that polls are conducted, engagement with consumers happens, and new products are announced or tested. V8® also holds sampling or ‘giveaways’ within public spaces or at college campuses during finals week. There is also a slight presence on television but it is not a large focus of the brand strategy. V8® is already positioned as the “go to” brand for the baby boomer generation and consumers seeking healthier alternatives to their current beverage consumption habits. V8 Brand Trends Some growing trends in the V8 product line: • Product Line Expansion within healthy beverage universe • Targeting Energy Drink Market • Heavy Social Media Marketing • Much more marketing efforts towards V8 Fusion Products • Appealing to the health-conscious consumer base • Aggressive Growth/Expansion Plans 4 Strengths “Mega Brand” Already known to public V8® already perceived as healthy alternative Opportunities Weaknesses Diverse beverage portfolio Energy drinks are not primary focus of the company Main competition has more effective marketing strategy Corporate culture is not known to take many risks No established presence in energy drink market Growth in consumer preference for healthy alternatives Can appeal to both men and women Current energy drinks percieved as unhealthy Only energy product to provide fruits and vegetables Several “health” competitors flooding the market Threats S W O T Experience entering new markets V8 not perceived to be as “edgy” as competition Three Competitors control 70% of energy drink market Passive marketing in aggressive environment 5 The Competition Competition: RedBull Company Background RedBull Inc. founded 1987 in Austria is the leading energy drink provider both in the U.S. and the world. With 43% of the market share in the U.S it is leading the market in trends and strategy. RedBull makes the promise to vitalize the body and mind; people believe this promise due to the significant boost of energy the product gives the average person. RedBull has been hit with the threat of a public becoming skeptical of energy drinks; to counter this RedBull had studies conducted by scientists to prove RedBull was safe for consumption, but even after doing this the public at large is still skeptical of the drink although they continue to consume it. The company is focused solely on production of energy drinks giving them a competitive edge, but this can serve as a weakness if the company was to ever lose market share. RedBull marketing is heavily geared towards maleyouth culture as evident by their television, magazine, and viral video advertisements featuring extreme sports, and very active/edgy music groups. There are some advertisements that have been geared towards the working adult but it is rare to find. Redbull utilizes “student brand managers on college campuses, as 57% of college students drink Redbull to make up for lack of sleep. 8 Strengths Established standing in market Aggressive marketing strategy Percieved as the “go to” energy drink Weaknesses Company focus only on production of Red Bull Percieved as unhealthy Marketing mainly targets males Does not appeal towards working adults Male demographic is the bulk of consumer base Rockstar 12% Monster 15% Redbull 43% Misc. 30% 9 Competition: Monster Company Background Monster Beverage Corporation (formally Hansen’s Naturals, changed Jan 5, 2012) has been in business since 1935 and holds 15% of the market share. The company produces fruit juices, natural sodas, drink mixers, and energy drinks. The company is responsible for Monster Energy Drink which was introduced to the market in 1997. The main point of differentiation for Monster was their can size which was roughly twice to three times the size of a Redbull mini-can. Throughout the years their main competitor Redbull has offered increased can sizes, but Monster continues to counter with even larger sizes. Monster is marketed almost exclusively to maleyouth. There are some varieties marketed to young women but these are very rarely promoted. Monster uses a lot of testosterone driven taglines, violence, sexualization, and pop culture icons to promote their products. Monster also is very unconventional in their ways of marketing utilizing sponsorships of extreme sporting events and exclusive event promos. There is also the use of their own social media that was dubbed the “Monster Army” which is an action sport community that draws in extreme sport enthusiasts. Monster has a solid niche in the way which the company markets their product. The largest weakness that Monster faces is also their largest strength; it is their extreme focus on the male-youth, without this crucial customer base Monster sales would rapidly drop-off, forcing a new brand strategy. 10 Strengths Offers one of the largest can sizes Uses extreme sport celebrities for promotion Aggressive marketing strategy Weaknesses Diverse product portfolio Male centered marketing Contains ingredients not evaluated by FDA Only holds 1/10 of the energy drink market share Produced under a larger company Rockstar 12% Monster 15% Redbull 43% Misc. 30% 11 Competition: Rockstar Company Background Rockstar Inc. was started in 1998 with its first product release (Rockstar Energy Drink) in 2001. Rockstar is third in terms of market share (12%). The Rockstar product line includes their energy drink in various flavors, Rockstar Pink (female oriented adaption), Recovery Energy Drink, Rockstar RELAX, and Rockstar Energy Gum. Rockstar like every energy drink competitor has claimed to have formulated the ideal formula for energizing the body as it “supports the active Rockstar lifestyle”. Rockstar also sought to differentiate itself from Redbull by providing a can size twice the size of Redbull’s 8oz option, although this did not help to effectively differentiate Rockstar from Monster. Rockstar also is seeking to differentiate itself by marketing products exclusively for women, relaxation, hydration, and energy gum; these are products that Rockstar’s primary competition does not sell. Like Monster, Rockstar is almost exclusively marketed to male youths, the only exceptions being the special niche product such as Rockstar Pink. Rockstar also utilizes sponsorships to promote their brand. The main promotion that resulted in a tremendous spike in sales was the use of a hip-hop song called “Party Like a Rockstar”. without this crucial customer base Monster sales would rapidly drop-off, forcing a new brand strategy. One setback Rockstar has suffered is due to the CEO Paul Revere being the son of a controversial figure in the political sphere (Michael Savage). This has resulted in the boycott of the company’s products several times by LBGT organizations and anti conservative groups nationwide. Another setback that has happened was when Men’s Health magazine named Rockstar the “Worst Energy Drink” to buy, due to its unnecessarily high calorie count and lack of anything beneficial to the consumer. 12 Strengths Large can size Distributed by PepsiCo Offers the most flavor options Weaknesses Targets some niche consumers (women, athletes) Rockstar has more calories and sugars than competitors. No unique selling point Not well accepted due to CEO familial ties Ineffective/redundent marketing Rockstar 12% Monster 15% Redbull 43% Misc. 30% 13 Target Audience Target Demographic Demographics Energy drink companies have a trend with a certain demographic that has been historically targeted due to their on-the-go lifestyle and receptiveness to advertisements for energy products. The target demographic is as follows: Young Adults, all ethnicities, males and females, age range 18-34, living in urban dense areas, with no kids, and not married. The level of education can vary depending on the subgroups within the demographic; for example 50 percent of those who are in a college institution consume energy drinks at least once a month. • Young Adults • All Ethnicities • Males and Females • Age 18-34 • Urban Dense Areas 16 17 Target Psychographic Psychographic With such a wide range of consumers who use energy drinks, there are several different lifestyles and personalities involved. Based on Maslow’s Hierarchy of Needs and the Cross Cultural Consumer Characterization (4Cs) model, the following three personality types were selected as the core consumers of energy drink products. The Explorer: Full of energy, this personality type favors autonomy, new experiences, new challenges, and new frontiers. These people are generally the first to try a new brand out of their inherent desire for new things. Explorers for the most part are loyal to brands that offer differentiation, mystery, excitement, sensationalism, and instant effectiveness. These people are normally younger and students of one or more disciplines.competition does not sell. The Reformer: Always seeking freedom from restriction, this personality type favors personal growth, social awareness, self awareness, independence, tolerance, anti-materialism, and non-conformity. These people are generally aware of a products source and will not seek out brands that lack integrity or transparency. Reformers for the most part are loyal to brands that offer quality, natural simplicity, authenticity, and harmony. These people are normally self driven, self educated, and have a background of higher education. The Succeeder: Extremely goal oriented, this personality type favors stability, the status quo, organization, control, and responsibility. These people generally have a strong filter for new brands and will not take the risk with a new brand if it does not offer more stability than their current one. Succeeders for the most part are loyal to brands that offer prestige, security, unobtrusiveness, and stress relief. These people are normally life experienced and strategic by their own nature. The Explorer The Reformer The Succeeder • Autonomous • Freedom Seeker • Goal Oriented • Loves Challenges • Socially Aware • Unlikely to take risk with new brands • First to try new brands • Anti Materialist • Strategic by nature • Favors: differentiation, sensationalism, mystery • Favors: natural simplicity, authenticity, quality • Favors: prestige, security, and stress relief Typical Person Profile 18 Profile #1: The Avid Skateboader Profile #2: The Attorney Profile #3: The Busy Student Jake is 5’7”, 19 years old, and a native of Los Angeles with no kids. Jake works a part time job 20 hours a week at a skate shop for minimum wage. He is an avid skateboard enthusiast and plays video games frequently. Jake tries to find excitement in every aspect of his life but sometimes does not have the energy to keep up with his dynamic endeavors. He has tried several energy drinks but finds that he is very sick or immediately tired a few hours after consuming them. Jake has never really been concerned for his health, but he is looking for a new energy boost that won’t disrupt his routine just hours after consumption. Victoria is 5’6”, 32 years old, and holds a J.D (Juris Doctor) degree. Victoria works as a full time attorney for a real estate company out of Chicago. Victoria is always in the know when it comes to current issues in society, particularly ones directly affecting her immediate situation. Victoria often feels trapped in her routine, so she tries to find freedom by being active outside of work. Due to increasing demands from her job she often struggles to maintain alertness throughout the day. Despite her healthy diet and lifestyle she still cannot find enough energy to keep up with the demands of everyday life. Myra is 5’4”, 22 years old, and a college student with one year remaining till she receives a Bachelors degree. Myra does not work as she is able to live off of her loans until she finishes school. Myra is very focused on her studies; she does little outside of analyze and plan for her future. She is determined to run a corporation someday. She often finds herself mentally tired and too drained to complete some of her tasks. Myra is very aware that she needs to remain healthy in order to achieve her goals so she does her best not to consume energy drinks. She is looking for something to give her a boost of energy without destroying her body. 19 Design Strategy Observations & Conclusions Summary To recap, Campbell Soup Company has decided to expand their V8® product line into the lucrative energy drink market. The company has not expanded into this area of beverages yet so it will be challenging to oust the leading competitors. The energy drink market at the moment is 70% dominated by three main companies and the remaining 30% are miscellaneous brands; some of which claim to be healthy alternatives. The companies who dominate much of the market share (Red Bull, Monster, and Rockstar) promote their products predominantly towards male youth; often through sexualization, violence, and high testosterone activities. It is uncommon to see an ad from either one of these three companies unless it is promoting an event sponsored by them. Upon observing the target audience some key examinations were found. First, many of the people who have consumed or heard about energy drinks are becoming increasingly health conscious and aware of the serious health effects that the drinks can have on an individual. Second, there are three personality types who consume energy products: the explorer, the reformer, and the succeeder. Last, the target audience is very active and often times lack the energy to keep pace with their lifestyle • Market is dominated by 3 companies • Brand image is very similar among main competitors (little differentiation) • Companies mainly target male youth • Public is becoming more health conscious • Psychographic: Explorer, Reformer, and Succeeder • Women consumers are at large neglected by most of energy drink market • V8 brand image is radically different than competition’s Objectives, Design Strategy, & Timeline 22 Business Objectives The business objectives have been filtered down to achieve the most effective method of entry into the energy drink market. Business objective number one will be to seize in one year a 15% minimum market share in the energy drink market. This will be achieved when the target market is aware that an alternative to their current selection exists. To meet this objective there will be a full campaign launched that will include: billboard, magazine, web banner, ambient, and transit posters. These mediums were determined based upon the age and active lifestyles of the target audience. Business Objectives | Design Strategies Seize 15% market share in one fiscal year Comprehensive advertising campaign Position product as most beneficial source of energy Targeted messaging: Nutrition, balance, and simplicity Business objective number two will be to position V8 Fusion + Energy as the most beneficial source of energy. This will be achieved with the use of specific brand associations and targeted messaging. Nutrition, balance, and simplicity will be central in the messaging, these attributes associate in a positive manner with the target psychographic. Phases Phase One (July 12-July 26): In this phase the Art Director will meet with client to discuss business objectives, budget, and expected outcomes of the project. Roles are assigned to design team. Once objectives are established client will approve for initiation of Phase 2. Cost: $900 Phase Four (August 24-August 28): In this phase the Art Director and design team will begin to explore ideas relevant to the research from the marketing brief. The ideas will then be filtered down to the three most effective approaches. These three will be presented to the client for approval. Cost: $3,000 Phase Two (July 26-August 16): In this phase the Art Director and design team perform extensive research. The industry, company, competition, target audience. During this time a SWOT analysis is developed along with target audience profiles. This is the foundation to determine the best course of action to solve the business problem. Cost: $4,050 Phase Five (August 29-September 6): With approval from client the final solution will be edited and refined. Client will review before proceeding to Phase 6. Cost: $3,000 Phase Three (August 16-August 23): In this phase the Art Director and design team develop the final marketing brief to the client with refined objectives and design strategy. Client will review document and determine whether or not to proceed forward to the next phase. Cost: $600 Phase Six (September 13): In Phase 6 the production of the final campaign will be executed and delivered to client. For one quarter after launch the campaign will be evaluated and assess for effectiveness in meeting business objectives. Cost: $86,400 Phase 1: Project Orientation Establish Parameters for project. Phase 2: Research & Discovery Research and analyze industry company, competition, and target audience. Phase 3: The Marketing Brief Deliver final marketing brief, with established plan of action. Phase 4: Creative Exploration Explore ideas relevant to research, filter down to most effective approaches. Present for client assessment. Phase 5: Creative Refinement Edit and refine final solutions. Present for client’s final assessment. Phase 6: Creative Implementation Production of final campaign and analysis of trends and market shifts during campaign lifetime. 23 Reference List Source 4-Traders (2011, October 6). Campbell Soup Company : V8(R) Brand’s Real-Fruit Smoothies Remix the Juice Aisle. 4-Traders. Retrieved July 19, 2012, from http://www.4-traders.com/CAMPBELL-SOUP COMPANY-12154/news/Campbell-Soup-Company-V8-R-Brand-s-Real-Fruit-Smoothies-Remix-the-Juice Aisle-13829078/ Campbell Soup Company (2011). 2011 Annual Report. 110. Campbell Soup Company (2011). 2011 Corporate Social Responsibility Report. 25. Campbell Soup Company (2012). The Campbell Soup Company. Retrieved July 19, 2012, from http://www.campbellsoupcompany.com/ Heckman, M. A., Sherry, K., & Gonzalez de Mejia, E. (2010). Energy Drinks: An Assessment of Their Market Size, Consumer Demographics, Ingredient Profile, Functionality, and Regulations in the United States. Comprehensive REVIEWS in FOOD SCIENCE and FOOD SAFETY, 9, 15. Manners, T. (2009, October). Think Big!. The Hub Magazine. Retrieved from http://www.hubmagazine com/2009/10/think-big-2/ Medical News Today (2012). Predicting The Top Five Health Trends For 2012. Retrieved from http://www medicalnewstoday.com/articles/239897.php Miller PhD, K. (2009). Who’s Getting Wired Up and Why?. 6. Monster Energy Company (2012). Monster Energy Drink | Home. Retrieved July 24, 2012, from http://www monsterenergy.com/us/en/home/ Redbull USA (n.d.). Products & Company. Retrieved July 24, 2012, from http://www.redbullusa.com/cs/Satellite en_US/Red-Bull-Energy-Drink/001242989766321 Rockstar Inc. (2012). Rockstar Energy Drink. Retrieved July 24, 2012, from http://www.rockstar69.com/ Silverstein, B. (2010, November 19). V8 Almost 80 and Still Making a Splash . Brand Channel. Retrieved from http://www.brandchannel.com/features_profile.asp?pr_id=518 V8 Fusion + Energy (n.d.). V8 Fusion + Energy | FAQ. Retrieved July 12, 2012, from http://vfusionplusenergy com/FAQ V8 Juice Retrieved July 19, 2012, from http://www.v8juice.com/Products.aspx V8 Juice (n.d.). V8 - Home. Retrieved July 19, 2012, from http://www.v8juice.com/OurMission.aspx Young & Rubicam (2002). Young & Rubicam’s 4Cs. Young & Rubicam’s 4Cs Values Segmentation. Retrieved July 19, 2012, from http://www.4cs.yr.com/global/