keurig media plan
TRANSCRIPT
Situation Analysis
Coffee Industry
• The retail value of the U.S. coffee market is
estimated at $30-32 billion dollars
• In a 2013 survey conducted by the National
Coffee Association, it was discovered that 83% of adults drink coffee in the U.S
• The United States is considered the world’s
largest consumer of the beverage
• Americans crave their daily fix and drink an
estimated 400 million cups a day
• “Keurig" is derived from the Dutch word for excellence
• Founded in 1990 by Peter Dragone and John Sylvan
• In the late 1990's, Green Mountain began investing heavily in the Keurig coffee company
• In 2006, they fully acquired the Keurig company & the single
serve brewing machine
• Currently, Keurig is the leading single-cup brewing system in
the USA & Canada
• The Keurig brand is one of the most widely known among
coffee makers
Company
Advertising Spending
• Keurig Green Mountain, Inc., “spent about $44.5 million from January through September 2014 in U.S measured media”
• In 2012, the Keurig Green Mountain, Inc., spent $62.2 million, up from $51 million in 2011”
MINI Plus Brewer
• Brews a perfect cup of coffee, tea, hot cocoa or iced beverages in under two
minutes through the touch of a button
• Available in a variety of colors such as Black, White, Platinum, Green, Orange, Cobalt Blue, Yellow, Red, Purple, and Aqua
• Compact size means you can enjoy Keurig just about anywhere you call home
Competitive Overview
Nespresso’s VertuoLine Starbucks Verismo Bunn’s My Cafe Mr. Coffee’s single serve
brewer
Primary Audience
Adults ranging from 18-24 (MRI Index: 82),currently going into college or already attending, “old souls”, and always on the go. They love to drink coffee, staying up on pop culture, eating breakfast with friends, cooking a great meal, and reading a good book. They also have a strong sense of responsibility & maturity.
Target Audience
Secondary Audience
Adults aging from 55-64 (MRI Index: 133) years old who are parents/grandparents of the new audience, gross over $150,000 annually, and are able to afford and provide a luxurious and high-end lifestyle for them and their children/grandchildren.
SWOT Analysis
Strengths Weaknesses
• Great customer service• Established brand• Innovative• Comes in a variety of colors & sizes• Easy to use• Convenient• For other uses besides coffee, such as soda, soup,
& energy drinks• Compact• Doesn’t waste coffee
• Expensive• Doesn’t brew automatically • Tends to have manufacturing issues• Only has market share in the United States and
Canada• Only brews hot beverages • Hard to maintain cleanliness
• “Kitchen gadgets are a notoriously faddish product category”
Opportunities Threats
• Extend the uses of the machine for cold
beverages, soups and other categories
• Widen the target to other consumers besides
coffee drinkers
• International Expansion
• Develop a solution to help better maintain
sanitation
• Primary competitors such as Nespresso’s VertuoLine,
Starbucks Verismo, Bunn's new MyCafe system, and
Mr. Coffee single serve brewer.
• Brick-and-mortar competitors such as Dunkin’ Donuts,
Peet’s Coffee, and Starbucks
• Keurig is going to raise K-Cup Prices by 9%, which
may affect the sale of the brewer itself
• Economic slowdown
SWOT Analysis
Media Objectives
• Focus on increasing usage and brand awareness among college students in the United States
• Maintain existing audience and get them to create WOM to their children/grandchildren in college
• Carry out creative message that late night homework and studying is synonymous with coffee drinking
• Promote Keurig app through mediums
Geography
CENSUS
REGIONS
MRI INDEX
NORTH EAST 111
SOUTH 105
MIDWEST 92
WEST 91
• Advertise throughout college
campuses around the United States
• Focus more heavily on the West and Midwest where index numbers are
lower
Seasonality
• May & June- Kicks off graduation season for incoming college freshmen
• August & September- Starts the fall semester for returning, incoming, and transferring college students
• November & December- Holiday season where parents/grandparents are more inclined to purchase the Keurig MINI Plus Brewer for their children in college
Media Strategies
• Television- targeting existing 55-64 year old audience during the daytime since most people drink coffee during this time; only in Q2, Q3, & Q4 since these are gifting seasons & could potentially spike sales
• Magazines- relatable to both audiences, millennials can take it on the go, pass-along readers, long shelf life
• Outdoor/OOH- since 96% of adults pass by outdoor locations during an average week
• Digital/Interactive-“millennials spend a slight majority of their weekly media time using digital devices, and are the only generation where digital media consumption exceeds traditional media.” Also, interactive because it engages audiences and creates shock
Media Mix
Television
• Networks: Bravo (106), Food Network (120), and the Cooking Channel (119)
• Daypart: Daytime
• Cost: $7,000
• Weeks: 18
• Rating Points: 30
• GRPs: 18 x 30= 540
• Total: 540 x $7,000 = $3,780,000
Magazines
Entertainment Weekly
• MRI Index: 124
• Frequency: Weekly as a print and digital publication
• Total Circulation(Audited): 1,749,457
• Page Rate (4C): $197,000
• Total Cost: $197,000 x 12 ti = $2,364,000
Food Network Magazine
• MRI Index: 145
• Frequency: 10 times a year as a print and digital publication
• Total Circulation (Audited):1,631,528
• Page Rate 9ti (4C): $85,085
• Total Cost: $85,085 x 9 ti = $765,765
Magazines
Bon Appetit
• MRI Index: 186
• Frequency: Monthly as a print and digital publication
• Total Circulation (Audited):1,518,622
• Page Rate 12 ti (4C): $153,341
• Total Cost: $153,341 x 12 ti = $1,840,092
Midwest Living
• MRI Index: 138
• Frequency: Bi-monthly as a print and digital publication
• Total Circulation (Audited): 963,353
• Page Rate 4th cover (4C) : $200,100
• Total Cost: 200,100 x 1ti = $200,100
Outdoor (OOH)
Bus Shelters
• $ 45,500 (national rate)
• $ 45,500 x 4 months = $182,000
Wrapped Train
• $ 39,766 (national rate)
• $ 39,766 x 12 months = $477,192
Digital/Interactive
Recipe Rig App
• Gives you recipes that you can make on the Keurig MINI
Plus brewer with ingredients you already have
• Has the option to choose between either hot or cold
beverages
• Offers you suggestions on food items that would pair with
the drink chosen
Social Media
• Platforms: Facebook, Instagram, & Twitter
• Total Cost: $10,000 x 12 months = $120,000 x 3 platforms = $360,000
Financial Statement
Mediums Cost
Television $3,780,000
Magazines $5,169,957
Outdoor (OOH) $659,192
Digital/Interactive $360,000
Total Budget Spent: $ 9,969,149
Flow Chart
Keurig Media Plan Flow Chart
January February March April May June July August September October November December TRPs Ins Cost
Media Target 1 6 15 22 29 5 12 19 26 5 12 19 26 2 9 16 23 30 7 14 21 28 4 11 18 25 2 9 16 23 30 6 13 20 27 3 10 17 24 1 8 15 22 29 5 12 19 26 3 10 17 24
Television A 55-64540 $3,780,000
Magazines
Food Network Both 9 ti $765,765
Entertainment Weekly Both 12 ti $2,364,000
Bon Appetit Both 12 ti $1,840,092
Midwest Living A 55-64 1 ti $200,100
Outdoor (OOH)
Bus Shelters Both $182,000
Wrapped Train Both $477,192
Digital/Interactive
FaceBook A 18-24 $120,000
Twitter A 18-24 $120,000
Instagram A 18-24 $120,000
Total $9,969,149
Sources
• MRI Plus
• Kantar Media SRDS
• Keurig.com
• Geller, Martinne. "Analysis: New Single-serve Coffee Brewers Pile Pressure on Keurig." Reuters. Thomson Reuters, 04 Mar. 2012. Web. 22 Nov. 2014.
• Morrison, Maureen. "Havas Picks Up Green Mountain Business." Advertising Age Agency News RSS. Ad Age, 23 Dec. 2013. Web. 22 Nov. 2014.
• Gasparro, Annie. "New Coffee Brewer Tests Keurig CEO's Recipe." The Wall Street Journal. Dow Jones & Company, 21 Aug. 2014. Web. 25 Sept. 2014.
• Kline, Daniel. "Keurig vs Nespresso: The Battle for Single-Cup Coffee Supremacy." N.p., 7 Apr. 2014. Web. 25 Sept. 2014.
• "The Coffee Addiction." CNBC, n.d. Web. 23 Nov. 2014.
• Sutherland, Daisy, Dr. "Keurig and College Students Are a Perfect Match." Dr Mommy Online Wholistic Fit Living Tips for the Busy Woman and Family. Dr Mommy, 25
Aug. 2014. Web. 23 Nov. 2014.