Izze

The new way to drink.

EXECUTIVE SUMMARYTABLE OF CONTENTS

Executive Summary

Situation Analysis

Marketing Goals

Target Audience

Media Objectives

Creative

Media Strategy

Media Execution

Promotions and Non-Traditional Efforts

Budget

Appendix

In the past, Izze used a low-to-no-budget word of mouth/kitschy event campaign strategies. Now, with this plan, Izze will take a new direction with its marketing and advertising. This campaign focuses on the strategies of competitors, and uses those budgets as a template for the optimal use of the advertising budget. The current marketing objectives are: 1. Make the brand ubiquitous, or found everywhere to to guarantee convenience in buying. 2. Generate national awareness by creating dialogue with the potential customers based on their needs and lifestyles. Through this plan, which will target both spot and national markets, these objectives will be met. This plan also includes other non-traditional efforts to set Izze apart as the drink of the summer.

SITUATION ANALYSISSITUATION ANALYSIS

Izze was developed by Todd Woloson and Greg Stroh in February 2002. They had the goal to make a great product that also gave back to the greater good. The beverage is influenced by sophisticated European sodas. It is created with pure simple ingredients such as real fruit, which contains fructose, an organically natural sugar. In 2006 Izze was acquired by Pepsico.

Historical

MarketOut of 35,000 supermarkets in the USA, and 149,000 convenience stores, Izze’s penetration into these stores is below 12%. Mintel estimates that soft drinks could grow to $50.1 billion by 2017. One of the possible contributing factors to this potential increase is “additional product development that reduces calories or offers carbonated alternatives to soft drinks,” such as Izze.

Past and Current AdvertisingIn the past, Izze used low-to-no-budget word of mouth/kitschy event campaign strategies.

CompetitionThe competition spends $727.5 million annually. Compared to the $18 million that is available for use every choice made for the media plan will have to be well thought out. Mintel reports that adults are turning away from soft drinks as a whole because of the lack of health benefits. Instead they are drinking more milk and water for their natural health benefits. Young adults and teenages are turning away from soft drinks as well. Instead of turning to healthier options like their older peers, they are drinking more flavored coffees and energy drinks. Based on a study conducted by Mintel that included 2,000 internet users ages 18 and up, 86% of them reported that they drank soft drinks in the last six months. Directly behind soft drinks are milk at 85% and juices at 84%. These numbers show that all soft drinks, including Izze, need to have a better market strategy to distance themselves from other drinks.According to Kantar, carbonated soft drink brands spent the most on advertising compared to bottled water, fruit juices, non-carbonated soft drinks and vegetable juices. In 2013 these brands spent $7,275,000 with most of the money going to network television $3,494,000.

In fact Mintel reports that awareness about potential health effects of soft drinks is growing, while consumption is reducing. Actually 27% of those who reported on their soft drink consuming habits have said that they drink fewer soft drinks compared to the previous six months.

Izze is in a great position to capitalize on this decline of interest in unhealthy soft drinks. Izze has natural ingredients that make it contain less calories than competitors. By looking at this data it is easy to see that the future for Izze could be a bright one.

MARKETING GOALSSWOT ANALYSIS

• Healthier than other soft drinks 87-107 calories in 8 ounces 120-130 calories in 12 ounces• Sugars are naturally occurring and come from wholesome, natural sources• IZZE with vitamins• No caffeine, no preservatives, no refined sugars• Growing social media presence on Twitter, Facebook and Pinterest

Strengths

Weaknesses• High price tag• Not well known• Izze’s brand personality is not clearly defined in the mind of customers• Dependent on word of mouth advertising• Perception of “different” taste when compared to other soft drinks

Opportunities• Over 35,000 supermarkets in the USA and over 149,000 convenience stores (Nielsen) IZZE current penetration is below 12% Goal is 70% penetration• People are drinking less unhealthy soft drinks• A stronger social media presence

Threats• Other flavored soft drinks• Difficulty to find Izze on the shelves• Less expensive soft drinks

Primary Goals• Make the brand ubiquitous, or found everywhere to to guarantee convenience in buying.• Generate national awareness by creating dialogue with the potential customers based on their needs and lifestyles.

Secondary Goals• Izze would like to demonstrate an honest departure from the syrupy, sweet sodas of the past.• It would like to promote the naturalness of the drink.• Communication is cooperative and from the buyer with the aim to create a dialogue with potential customers based on their needs and lifestyles.

MEDIA OBJECTIVESTARGET AUDIENCE

Women: 111Working Women: 125Some college: 11118-24: 13425-34: 127Employed Part-time: 113Sales and Office Occupations: 126 IEI $30000-$39999: 119Single: 125Pacific- Mktg Regn: 138 Any Child in Household: 120

Izze is a new sparkling juice brand that needs to have a higher reach. Because of that they have a low market share. The plan is to have it to be able to achieve a higher reach. We want to have our campaign from April to August because it’s the most effective days for consumers to buy drinks.

Index Numbers

SummaryAccording to the index number of those who drink Izze, women are 11% more likely to drink it than we expect. Furthermore, working women are 25% more likely to drink Izze that we should expect. Women 18-24 are 7% more likely to drink it than women ages 25-34, but we will include both of them in our target audience because their index numbers are 134 and 127 respectively. More specifically, we are targeting women who work at least part time in sales and office occupations, who have a yearly income of $30,000 to $39,000 per year. We will target the western United States more heavily than the eastern, but not leave any place out because we want this brand to grow.

They use simple copy for their advertisements and they tend to create new campaigns each time. The type of advertising that they lean on is image heavy making it less frequent because of the time required for these ads. The messages within their ads is simple each takes less time. Izze also tries to avoid wearing out its customers with old messages, so they come up with new ones often. To achieve those simple messages they tend to use small ad units to advertise.Izze has lower ad clutter in their media mix. Because they are not an established brand, their attentiveness to media is low. For their media mix they use pulsed or flighted strategy. Surprisingly, they only have a few types of media used in their media mix. They also offer opportunities for media repetition.

See Campaign Goals and Ostrow Model in Appendix for details.

MEDIA STRATEGYCREATIVE

For sparkling drink lovers, IZZE is a Sparkling Juice which provides a variety of flavor just for you. Unlike traditional carbonated beverages, all sugar/carbohydrates in IZZE naturally occur and come from wholesome, natural sources.

This Izze campaign will use a combination of both national and spot advertising. We want to focus on the top 50 markets with the highest market potential index numbers. We want these potential markets to flourish but we also realize that Izze needs to grow nationally and reach a larger audience. By having both a spot and national market this goal can be made accomplished.

National and Spot

Spot Markets

EV% Examined

Media Mix Determined and Justified

The spot markets chosen are the optimal combination of the highest percentage of target audience in the area, as highest potential market index numbers.

See appendix for EV Chart.

Use competitive spending technique to compete with other flavored soft drink companies. If they spend 25% on a certain vehicle, that is where the budget will go.

Scheduling PatternThe type of scheduling pattern to be used is a flighting pattern. Since this drink is mostly consumed in the warmer, summer months, it will be best to promote it during the months of April until August.

Since Izze is most directly competing with flavored soft drinks, that is what it should be compared to, and what the SOS (share of spending) should match, and what the media mix will be based on.

We will position Izze as the healthy alternative to mainstream soft drinks. IZZE, the new way to drink.

PROMOTIONS AND NON-TRADITIONAL

Promotional and non-traditional efforts are used to supplement what is already being done with the advertising efforts. Promotional efforts will add to reach and give a more hands on approach to advertising and product knowledge compared to the traditional ads. The main source for this advertisement will be done at local events where samples will be given to customers to try the product. Brand awareness is the goal in this strategy. Booths will be set up at fairs, concerts, farmer’s markets and other community events in larger cities as a trial basis to see if this produces a growth of sales in those targeted areas. If the results prove this tactic is useful the area will be expanded to more cities.

Teaming up with other events is a great way to have the presence of the product without the overhead of running the whole event. Being a sponsor for a large event such as a race, concert or another community event will be a cost-effective way to perform this.

The second non-traditional tactic is the use of social media. Creating an online presence is a very cost-effective way to be able to gain product recognition, be informed with what customers think of the product and a great way to be able to do promotional offers in exchange for customers sharing information or posts about the product.

Izze’s Facebook page will be updated regularly with fun quotes, ideas for how to use the product, pictures and promotions. The focus should be on creating a strong following of customers and potential customers rather than just pushing the product. The larger the following the more potential customers will be able to be reached. Coupons and personal stories can be spread through the online presence of not only Facebook but also with their Twitter account, a new Instagram account, Pinterest and other popular social media sites.

PROMOTIONS AND NON-TRADITIONAL

The final suggestion for promotional tactics is to give back to the community through a special promotion. Izze is concerned with the environment, health and of courses the quality of product they produce. These are all important aspects of the company that should be highlighted to the customers. Earth Day is April 22, from mid-March until the end of April a portion of the sales from Izze Drinks will be donated to the World Wildlife Fund which helps to preserve the planet as well as protect animal species. This effort will allow those that are environmentally conscious to give back while also purchasing the product and will also provide a great opportunity for public relations efforts and news stories. To promote this effort we will publish ads in magazines focusing on women and general interest. An example of an ad that might appear is in Appendix A.

MEDIA EXECUTION

The specific media vehicles we have chosen for programing on television is Heartland with an index number of 188, The Insider Monday- Friday, index number 195, and Insider Weekend Edition, index number 166 all of of these programs are on syndication for US markets. Other programs considered are Extreme Makeover Weight Edition with an index number of 166 and CBS This Morning Saturday edition with an index number of 188.

Specific Media Vehicles

Flowchart DiscussionAs mentioned before our original media objective for this campaign was a National reach of 60 and a Spot reach of 65 for the months of April and May. The months of June through August will have a National reach of 65 and a Spot reach of 70. All National frequency should be 4 and all Spot frequency should be 4.2.

Publication that have been picked are LA Times Sunday, with an index number of 187, Working Mother with an index number of 170, Popular Photography with an index number of 165, and Dwell with an index number of 162. All the above programs and publication were based mainly on their high index numbers. We also looked at the likelyhood of women ages 18-34 actually interacting with these vehicles. We feel that if we were to focus on programs and publication like the ones mentioned above our target audiences will have a greater chance of being met.

BUDGET

Yearly Budget

Spending Per Month

When looking at the flowchart (see Appendix) you can see that we exceeded all of our goals for reach on a National level. April with a reach of 67.6 and May with a reach of 67.5. June through July had a reach of 78.5. Unfortunately a frequency of 4 was not met for the months of April and May. On the plus side June’s through August’s frequency goal was exceeded with a 4.4. On a Spot market level none of our goals were met. All across the board reach as under by at least 47%. Frequency was not close as well to the goal of 4.2.

BUDGET BUDGET

TelevisionDaytime has a higher index number (140) than Primetime (107) but the viewership is slightly lower. 23,691,000 for Daytime and 46,510 for Primetime.

RadioRadio is a good option, because the highest index number lies in the heavy radio users. The Best time frames are:

Cable ServicesABC Family (110, pop 51,731,000)A&E TV (107, 57,558,000)BET (181, pop 5,498,000)Nick at Nite (178, pop 3,860,000)

Weekday: 3-7pm (102) pop. 99,930Weekday: 7pm- midnight (121) pop. 36,194Weekend 3-7pm (116) pop. 73,623Weekend 7pm- midnight (123) pop. 38,550

Use evening and night times because they provided a large population and index number at a relatively lower cost, while hitting our target market.

BUDGET APPENDIX

April and May

June, July and August

OSTROW MODEL

Established brands

High market share

Dominantbrand in market

High brand loyalty

Long purchase cycle

Product used occasionally

Marketing Factors That Affect Frequency-.2 -.1 +.1 +.2

-.2 -.1 +.1 +.2

-.2 -.1 +.1 +.2

-.2 -.1 +.1 +.2

-.2 -.1 +.1 +.2

-.2 -.1 +.1 +.2

+.1 +.2

+.1 +.2

New brands

Low market share

Smaller, less known brand

Low brand loyalty

Short purchase cycle, high volume

Product used daily

Need to beat competition

Adv. to older consumers/children

Simple copy

Copy more unique than competition

Continuing (old) campaign

Product sell copy

Single kind of message

To avoid wear out: new messages

Larger ad units

Copy Factors That Affect Frequency-.2 -.1 +.1 +.2

-.2 -.1 +.1 +.2

-.2 -.1 +.1 +.2

-.2 -.1 +.1 +.2

-.2 -.1 +.1 +.2

-.2 -.1 +.1 +.2

-.2 -.1 +.1 +.2

Complex copy

Copy less unique than competition

New copy campaign

Image type copy

More difficult kinds of messages

Older messages

Small ad units

Lower ad clutter in media mix

Compatible editorial environment

Attentiveness (to media) high

Continuous schedule campaign

Few media used in media mix

Opportunities for media repetition

Media Factors That Affect Frequency-.2 -.1 +.1 +.2

-.2 -.1 +.1 +.2

-.2 -.1 +.1 +.2

-.2 -.1 +.1 +.2

-.2 -.1 +.1 +.2

-.2 -.1 +.1 +.2

Higher ad clutter in media mix

Non-compatible environment

Attentiveness (to media) high

Pulsed or flighted campaign

Many media used

Fewer opportunities

Reach: 60Frequency: 4.0GRP: 240

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Laura Clair, Jacquie Weight, TJ Webster, Tat Cheong Ching, Cira Fear