vitaminwaterE N H A N C E Y O U R : L I F E

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7 E V A L U A T I O N O F G O A L S

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3 S I T U A T I O N A N A L Y S I S

vitaminwater

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vitaminwater is a well established brand with a strong hold on the enhanced water market. Despite this, vitaminwater has seen a decrease in sales in recent years. We believe this is occurring partially because millennials are starting to see that vitaminwater is not as healthy as it has claimed to be. We have observed vitaminwater is starting to go the route of not making as many health claims and is instead positioning itself as a fun and interesting drink for any occasion as well as praising the concepts of ambition and hard work. We believe this is the perfect direction for vitaminwater to be heading and want to stay consistent with it.

Our campaign is designed to engage the younger consumers in a way that plays up the ideas of fun and ambition through a competition that gives out funds, resources, and opportunities ranging from small to large and entirely based on what is requested by the participants. This is expected to be more popular with millennials than an “enter to win” type competition because it is not a simple raffle drawing. The winner’s success is based on their ideas and creativity rather than their luck. It will be advertised that there will be a large amount of winners and that the more creative, interesting, inspiring, or funny their video proposals are, the greater their chance to receive the sponsorship by vitaminwater. Another aspect we believe is important for this campaign is making some changes to where and how vitaminwater is distributed and how it is packaged.

E X E C U T I V E S U M M A R Y

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The objective of this campaign is to reignite vitaminwater’s brand and increase interest, positive perception, and preference among US consumers aged 18 - 24. While aiming to win over the younger crowd of consumers, it is important we do not alienate vitaminwater’s loyal consumers aged 30 - 39. Our campaign is intended to create

O B J E C T I V E

an interesting and engaging platform for vitaminwater to give back to it’s consumers and to help build up it’s positive brand perception with young consumers in a way that is also relatable to their loyalists. The campaign is intended to be consistent with vitaminwater’s more recent campaigns in an effort to help solidify its position in the market.

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vitaminwater is owned by Glacéau, also known as Energy Brands Inc., a privately owned subsidiary of Coca-Cola. On May 26, 2007 Coca-Cola Co. announced it was buying Glacéau for $4.2 billion in cash1. The purchase of Glacéau was the biggest purchase in Coca-Cola’s history.

This acquisition was a move by Coca-Cola to diversify their drink portfolio and branch further into the bottled water segment, and compete with PepsiCo Inc. in the flavored water industry. At the time Coca-Cola accounted for only “5 percent of the U.S. market for water drinks” versus PepsiCo’s 45 percent2. vitaminwater is considered enhanced water, meaning water that contains additional ingredients such as

vitaminwater competes and is a leader in the enhanced water market. According to Coca-Cola, vitaminwater is “the pioneer of the nutrient-enhanced water beverage category” ever since the innovative decision to add vitamins to its formula was made3. vitaminwater currently holds a 62% market share in the enhanced water beverage category4.

S I T U A T I O N A N A L Y S I S

Company

Overall, vitaminwater is a youth-centric brand, currently positioning itself based on health benefits through its name, packaging, and flavors. Each of its flavors claim to provide different benefits.

Most consumers in the current market perceive vitaminwater to be healthy and natural. However, the brand hasn’t been appealing to the younger demographics. The most loyal age range to vitaminwater is currently 30-39 year-olds, and vitaminwater has seen a steady decline in sales volumes from the 15-29 year-old demographic.

Position

vitaminwater aims their advertising campaigns across multiple forms of media (social media, TV, magazines, radio, etc.) to reach:

Health conscious people

People looking for an exciting and social lifestyle

People interested in music and fashion

vitaminwater portrays its brand value in two ways:Functional

Emotional

An energizing and refreshing drink

Added vitamins and nutrients

Energy-boosting to keep you partying and working

Healthy alternative to water

Act of choosing your benefit

Creative flavors and names

Being the “In” brand

Being a self-expressive drink

Athletes

18 - 34 year olds

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Glacéau uses multiple media channels to advertise and promote vitaminwater. They have used television, Internet, magazines, and billboards in the past to reach the target audience.

Their “Uncapped” campaign involved a series of live music concerts in nine cities across the U.S. with exclusive behind the scenes and live performance videos available on their YouTube channel.

This campaign showcased how consumer interactions are a large part of vitaminwater’s strategy. This campaign has seen success with improved consumer interaction, which has increased purchase intent and brand health metrics.

As a result, vitaminwater successfully penetrated the live music scene as a brand associated with live music performances. The brand’s “Make Boring Brilliant” campaign was geared towards the younger demographic, and encouraged consumers to use social media as a platform to express how vitaminwater helps improve boring situations.

vitaminwater

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vitaminwater Power-c (Dragonfruit) Defense (Raspberry-Apple) Focus (Kiwi-Strawberry) Essential (Orange-Orange) Energy (Tropical Citrus) Squeezed (Lemonade Flavored) Formula 50 (Grape) Revive (Fruit Punch) XXX (Acai-Blueberry-Pomegranate)

vitaminwater Zero Power-c (Dragonfruit) Go-Go (Mixed Berry) Rise (Orange) Squeezed (Lemonade Flavored) Glow (Strawberry-Guanabana) Revive (Fruit Punch) Focus (Kiwi-Strawberry) XXX (Acai-Blueberry-Pomegranate)

vitaminwater Fountain vitaminwater xxx (acai-blueberry-pomegranate) vitaminwater essential (orange-orange) vitaminwater revive (fruit punch) vitaminwater zero squeezed (lemonade) (Nutrient enhanced water beverage) *flavored + other natural flavors

vitaminwater Energy vitaminwater energy berry punch vitaminwater energy strawberry lime vitaminwater energy orange mango (Natural energy boost) *flavored + other natural lavors

vitaminwater Zero Drops vitaminwater zero drops squeezed (lemonade) vitaminwater zero drops revive (fruitpunch) vitaminwater zero drops rise (orange) vitaminwater zero drops xxx (acai-blueberry pomegranate) (Flavor enhancer with vitamins) *flavored + other natural flavors

vitaminwater uses sugar in their regular line5, and Stevia (instead of other artificial sweeteners) in their Zero line6. This could be seen as a potential benefit to those who are worried about the effects of chemical sweeteners and prefer products like Stevia as an alternative to sugar.

P R O D U C T L I N E

Skinny Water7

- Filed for bankruptcy in 20138

- Entered into a distribution deal with Kalil Bottling9 Company in November of 2014- 16,248 likes on Facebook- 1,341 followers on Twitter- 146 followers on Pinterest- Flavors • Orange cranberry tangerine, acai grape blueberry,goji black cherry, raspberrypomegranate- All flavors sugar free • Sucralose- All flavors have specific purpose • Orange for morning • Acai for energy • Goji for muscle recovery • Raspberry for appetite control- Have a “sport” line10

• Blue raspberry, pink berry citrus- Very limited purchasing opportunities • Company website • Amazon

SoBe Life Water- 2013 Sales: $63,622,977- Market Share: around 12% - Flavors

Strawberry kiwi, pacific coconut with coconut water, pomegranate cherry, pomegranate nectarine with coconut water, mango mandarin with coconut water, black berry grape, orange tangerine

Blood orange mango, acai raspberry, kiwi cherimoya, yumberry pomegranate, fuji apple pear, black and blue berry, black cherry dragon fruit, strawberry dragon fruit

•chance to win $10,000,000 •win $9,000,000 pick a perfect bracket •win $1,000,000 if you are the top scorer in each round •Meet a celebrity if you beat a celebrity bracket, you can choose to play against Kendra Wilkinson, Kenny Smith, Jerry Rice, Brooklyn Decker11

- re designed the bottles with wrap around lizard to differentiate against vitaminwater- Ashley Greene posed lifewater body paint for sports illustrated swimsuit edition ad- Introduced zero calorie line

- 2010 Sobe Zero Inhibitions Bracket Challenge

- Zero Calories

C O M P E T I T I O N

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vitaminwater

Hint Water“Water Made Tasty”Started in 2005-unsweetened, preservative free water12

- 0 Calories -Hint Fizz- Carbonated version, promoted as a healthy alternative to soda- Hint Water Flavors: blackberry, watermelon, blood orange, crisp apple, raspberry, peach, strawberry-kiwi, mango- grapefruit, honeydew, pomegranate, pear, cucumber, lime, peppermint13 -Partnership● Google Ingress (mobile game) Hint will start putting codes under the caps for the game14 ● Sold at Square● Compass Foods Will be put on campuses and hospitals15

-Sold on Amazon, many customers buy in bulk. They often drink 4-5 bottles a day-Social Media Facebook Followers: 278.021 Twitter Followers: 5,244 Instagram Followers: 5,930

Propel2013 Sales: $97,942,337Market Share: about 19%Re-launched - being branded as a sports drinkTargeting the everyday workout people - “routine exercisers”Zero caloriesGiving samples away at 5ks Own around 13% of the flavored water segmentPiggybacking off the Gatorade nameSocial Media ● Facebook Followers: 510,970 ● Twitter Followers: 3,495 ● Instagram Followers: 582 Give out samples of Propel power mix using workout apps (ex. MapMyRun, Nexercise)16

Sparkling IcePositioned as “bold” ● Sparkling waters: black raspberry, cherry limeade, strawberry watermelon, peach nectarine, orange mango, coconut pineapple, crisp apple, lemon lime, kiwi-strawberry, pink grapefruit, pomegranate blueberry ● Sparkling lemonades: mango lemonade, classic lemonade, raspberry lemonade, lemonade with tea, strawberry lemonade, peach lemonadeOfficial Sparkling Flavored water of the LPGA17 ● Event sampling ● Consumer-engaging tournament activations ● Retail partner promotions ● Ticket giveaways ● Social media tie-ins Direct-Store-Delivery18

● Over 250 distributors ● Grocery stores, drug stores, convenience stores, retail and non-retail outlets ● All 50 states Endorsement with Kevin Durant

C O M P E T I T I O N ( c o n t i n u e d ) ● “Durant shares Sparkling Ice’s authentic vision, adventurous nature, philanthropic spirit.”Advertising Campaign ● The Bold and the Best19 ● Billboards Seat Pleasant, Maryland Austin, Texas Oklahoma City ● Digital Platforms Espn.com Bleacher Report ● Social Media Facebook: 729,941 Twitter: 9,604 Instagram: 12.6 k20

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vitaminwater

R E S E A R C HM e t h o d o l o g y

T a r g e t M a r k e t / S e g m e n t a t i o n

Our research began by compiling a literature review by searching databases such as Mintel and Passport GMID, as well as using many different websites such as marketingcharts.com, ebiquity.com, and targetspot.com. Then we conducted an online survey, hosted by SurveyMonkey, and surveyed 1,051 respondents aged 18 - 30. We ran a series of tests on the results of our survey, using IBM’s SPSS, to discover additional information not found from our secondary research.

Consumer considerations when buying a beverage- Another segment we found valuable to our research was what consumers consider when buying a beverage. Our data made it evident that purchasing by convenience, bulk, or whether the beverage was new or interesting was significant in regards to how often people drink vitaminwater.(See figure 1.1 in appendix)

Young consumers see benefit in enhanced waterA study done in 2013 by Mintel showed more than half the respondents ages 18-44 agree that enhanced bottled water is a good way to consume needed vitamins and minerals. Consumers who respond to specific advertisements- Our research found that consumers that often drink vitaminwater recall advertisements from television, radio, and events the most. The data also showed some groups had high recall rates for social media advertising, indicating social media is another effective channel of advertising. (See figure 2.1 in appendix)

Millennials appreciate their individuality“Companies or brands that successfully market to Millennials are ones that recognize that there is no such thing as a ‘Millennial’—just individuals or groups of individuals who are at a similar lifestage and have lived through similar experiences. They want to be treated for who they are, rather than be lumped together and labeled21.”

The AIDA model (Awareness, Interest, Desire, and Action) dictates a linear route to purchase, but it has been shown that millennials do not function, or purchase, in a linear way. Instead, the Brand Atom Model is more in tune with millennial thinking, and has been used for successful millennial-centric campaigns, such as Bud Light’s “Up for Whatever” campaign.

The AIDA model typically ends in a purchase while the Brand Atom Model is centered more around customer engagement and interactions. The model focuses on energy, intrigue, partnership, experience, and meaning. The model works to utilize all of these components in the relationship between the brand and consumer and be a part of their lives22.

The model works to utilize all of these components in the relationship between the brand and consumer and be a part of their lives.It is important that vitaminwater utilize this model as much of their target , ultimately realizing that brands are “living and breathing organisms” that can build an important relationship with the consumer and market follows this model for brand relationships and path to purchase. The “Enhance Your Life” campaign works to utilize this model.

Demographic Survey Info: ● 1051 respondents ● Gender: 39.2% female and 60.8% male ● Majority of respondents aged 21-23, approximately 68% of the sample ● 97.5% had 12 to 16 years of education ● Ethnicity: Caucasian/White 79.7%, Hispanic/Latino 13%, African/Black 2.6%,East Asian 2.4%.

Position Segments based off student-conducted survey:

The AIDA model is ineffective with this group

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In our primary research we found that the most popular locations for consumers to purchase packaged beverages (such as vitaminwater) were grocery stores, restaurants, and convenience stores. (See figures 3.1, 3.2, 3.3 in appendix)

According to a study by Androit Digital: ● 70% of surveyed millennials said TV influences the way they perceive and value a brand ● 29% of respondents said that TV is the advertising medium most likely to introduce them to a new brand; 26% said social med ● 35% of surveyed millennials said TV was the advertising media they felt gives a brand the most credibility in influencing heir brand decisions. 32% said social media24

Movie PreferenceBased on our primary research we observed that comedy was the genre with the highest amount of preference from our sample followed by action and drama. This should be considered when buying cinema advertisements. (See figure 5.3 in appendix)

“Using a biometric belt to measure skin sweat, heart rate, respiration and motion, two different sets of audiences were shown a one-minute advertisement for Best Buy. The group viewing the advertisement in a cinema setting showed an increase in engagement by 32 per cent within the final moments of the advertisement, when the brand was revealed. Pulick said when shown the ad was on television, audience members showed a low level of engagement because there was an opportunity to tune out.”25 ● “Cinema advertising reaches over 113 million Americans 12+ in a month” -“Cinema advertising reaches 67% of persons 18-24” -“Among persons 18-24, 39% saw three or more movies in the last three months, 25% saw five or more” ● “Moviegoers are receptive to cinema advertising” -“63% of those who watched a movie in the last month ‘do not mind the advertisements they put on before the movie begins.’ ● “Moviegoers are not easily reached by TV” -“Moviegoers tend to be light TV viewers and frequent users of commercial avoidance platforms and technologies ● “59% of all moviegoers recall commercials at the movies” ● “Cinema advertising is persuasive”26

Our research also indicates that vending machines are one method of purchase that is a popular channel of distribution with younger consumers. According to a survey from Mintel, more than 6 in 10 respondents aged 18-24 purchased from a vending machine at a school in the last 30 days. More than one third of the respondents purchased from school vending machines more often than from machines in any other location. “These data suggest that the greatest potential for vending machine product sales growth may be spread across college and university campuses.”23 (See figure 3.4 in appendix)

D I S T R I B U T I O N T E L E V I S I O NC I N E M A

P R O M O T I O N

vitaminwater

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vitaminwater

● Strong brand following – especially on social media ● Diverse portfolio of innovative flavors that are regularly updated ● Leader in enhanced water market ● Strong branding through use of colors, humor/ irreverence, and pop culture, in regards to packaging and advertising ● Owned by Coca-Cola, a top 10 millennial brand27

● Ability to be positioned as more of a lifestyle/ everyday drink than a sports drink ● Ownership of the idea of enhanced water ● Healthier than soda ● Potential to partner with restaurants ● Potential to create different product lines with different purposes

● Sales decline in 15-24 year olds ● Stevia added in base product formula garnered a lot of consumer backlash ● Lawsuit for deceptive labeling of drink as healthy – now have to draw more attention to calories, etc. on the packaging28 ● Definition of market not clear in consumer’s minds (e.g. bottled water vs. enhanced water vs. sports drinks vs. etc.) ● Cannot buy directly from website -Lack of information about where to buy on website

● Competitors – new brands, new alternatives, healthier alternatives, new flavors -Substitutes Primary – Water, tap water, flavored water, sparkling water, soda, energy drinks, sports drinks -Substituting vitaminwater base product for other vitaminwater products -Competitors that are sugar free ● More expensive than some of its competitors ● Consumers view product as unhealthy

S T R E N G T H S

O P P O R T U N I T I E S

W E A K N E S S E S

T H R E A T S

S We also suggest that vitaminwater is made more accessible to the younger consumer. Our target market has a tendency to buy things like bottled beverages based on convenience, and while they may have certain preferences for drinks they won’t always go out of their way to seek them out.

In summary, this campaign’s strategy is to target 18-24 year olds and improve vitaminwater’s image by staying consistent with its positioning in a way that is honest, exciting, personalized, and interactive. Additionally, vitaminwater should ensure its product is easy to find and easy to buy.

In recent years, vitaminwater has been promoted by campaigns that emphasize ambition, fun, excitement, the up-and-coming, and being the drink for all occasions. Our plan is to stay with this trend and embellish upon it. Considering vitaminwater already has such a strong hold on this position, and has invested a lot of time and money into it, it would be foolish to move in a vastly different direction. Therefore, our plan is designed to stay consistent with this theme and integrate it into a personalized and interactive campaign.

Instead of “health” and “hydration,” we want to use the term “enhance,” which is a word that the brand obviously already centers around by owning the “enhanced water” market. By owning and using the word enhance, vitaminwater can show that its drinks are enhanced with vitamins and flavor and also enhances your experience as you drink it.

Though we will be staying consistent with the brand personaility, this plan steps away from positioning vitaminwater as a health drink or a hydrating drink. Millennials appreciate open and honest marketing29, and considering the amount of sugar in these beverages they feel turned away when they are being sold something so sugary marketed as something that is healthy.

This keeps the concept that it does have helpful vitamins in it, but it doesn’t try to scream “health!” It also integrates perfectly into the concept of making the everyday more exciting as vitaminwater did with the “Make Boring Brilliant” campaign and it also coordinates well with the concept of the “Hydrate the Hustle” campaign.

S T R A T E G I E S

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T A C T I C SEssentially, this campaign is reaching out to current vitaminwater consumers as well as their target market, and inviting them to submit video proposals that are meant to convince vitaminwater to sponsor them in doing something they would like to do.

A potential example is perhaps there is a club on a college campus that would love to put on an extravagant event to engage their community and promote themselves on campus. The club could submit a video that communicates their idea to vitaminwater and acts to persuade them into helping them realize their goal. The video would be shared on social media and reviewed by the vitaminwater team. When the team finds a video it likes, they will bring the winner’s goal to life and do it better than they ever expected! vitaminwater will make the event a spectacle by giving the winners more than they asked for. In other words, they enhanced the event. They will also incorporate free vitaminwater for the participants to drink and share with their friends. In this case, that would be easy: give the club vitaminwater to give out at their event. This will show that vitaminwater cares about helping people and appreciates

people with ambition. Young consumers are drawn to campaigns and brands that have an emphasis on values and cause affiliations30.

Millennials love things to be custom to them and to be seen in a more general and personal way31 so this is perfect in that it leaves it up to the individual or group to come up with cool ideas that they would like to see happen. It could be anything. Perhaps an artist would like to have money for materials for a project that they envision. vitaminwater could buy them their materials, but also enhance the deal by also providing them a spot in a gallery or show.

Young consumers also really appreciate humor and are often drawn to funny, over-the-top exaggeration. Campaigns like “Dollar Shave Club” and “Poo-Pouri” are great examples of humor being effective with the younger generation thanks to laughable and sharable content32. An example of this appeal to humor that is silly and outrageously over-the-top would be the story of Zach “Danger” Brown and how he launched a Kickstarter project to make potato salad. In exchange for funding,

“ E H A N C E Y O U R L I F E ” C O N T E S T he offered to say thank you and say the backer’s name as he made the salad. Surprisingly, he was able to raise $55,492 when his story was shared across social media33. Appealing to millennial’s and vitaminwater’s love of humor, and their positioning as a playful brand, would imply that it would be beneficial to choose some proposals that are humorous. For example, someone could submit a video that explains that they would love to fulfill their dream of watching every episode of Breaking Bad in a row with one great, uninterrupted Netflix binge. vitaminwater could respond to this video by making this marathon the ultimate Breaking Bad experience. They could rent out a movie theater, have a member of the cast visit, have a steady supply of food, and more. In other words, they enhanced the experience of the winner watching their favorite show. This shows that vitaminwater doesn’t take itself too seriously and believes in having fun and being playful, keeping consistent with its positioning.

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vitaminwater

To effectively implement this campaign, vitaminwater will need to actively promote the idea of enhancing experiences of its target market before the competition begins. These advertisements will create awareness about the “Enhance Your Life” competition as well as provide information on how to compete.

Once the competition has begun, to continue to create buzz, vitaminwater will create advertisements based on individual winners and their submission stories, and their final vitaminwater enhanced event. vitaminwater will emphasize this concept by using the phrase “Enhance your [event/binge/art], enhance your life” which will change depending on whatever the video shows vitaminwater enhancing at that time. vitaminwater will make sure the target market will see what it has done for each of the proposals by filming the events and airing them through our target age group’s most accessible forms of video media such as social media, television, and movie theaters.

A D V E R T I S I N GAn additional vitaminwater website will be created for this campaign, entitled EnhanceYourLife.com. This new website will create a convenient location for the target market to get additional information about the “Enhance Your Life” competition, including contest rules, contest submissions, and previous winners, in addition to acting as a medium to upload submissions for consideration in the competition.

S O C I A L M E D I A

In addition to social media advertising, the “Enhance Your Life” campaign will rely on social media to provide positive PR toward the brand as well as drive traffic to the EnhanceYourLife.com and vitaminwater websites.

This campaign will primarily utilize Facebook, Twitter, and YouTube to promote the campaign. These sites will use the hashtag #EnhaceYourLife to encourage interaction, build brand awareness of the campaign, and encourage members

E n c h a n c e Y o u r L i f e . c o m

of the target market to view competition submissions as well as create their own on the “Enhance Your Life” website. Popular submission videos as well as each of the winners will be shared using the social media networks to build excitement about the campaign.

A new YouTube channel will need to be created specifically for the “Enhance Your Life” campaign for posting popular submissions and winners, as well as eliminate the noise from other international vitaminwater campaigns that may be occurring at the same time.

M O V I E T H E A T E R A D V E R T I S I N G

During the course of our campaign there will be 16 weeks of advertising that will be utilized in movie theaters across the country. In movie theaters vitaminwater will be partnering with NCM media networks for a 30 second advertisement spot in the pre-movie segment known as “FirstLook”34. The FirstLook is a 25 minute segment that includes regional advertising andlocal

advertising, as well promotional content surrounding the entertainment industry. The vitaminwater advertisement will be shown in cinema chains that feature the FirstLook before movie showings such as, Regal Entertainment, AMC, and Cinemark theaters. Approximately, 1,250 theaters will be reached through vitaminwater advertisements, with the content of the commercial being altered as the campaign continues along.

vitaminwater

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Our research has shown that our target market prefers to purchase bottled beverages in bulk. vitaminwater will start to offer bulk packages based on enhanced benefit. Each pack has a common theme as evident by their package name. For example, one bulk pack is clustered based on their morning theme, thus being called “Enhance Your Morning” to stay consistent with our slogan. Each bulk package will include 16 bottles featuring 4 different flavors.

P A C K A G I N GD I S T R I B U T I O N

As a result of all the promotion the younger consumers will be seeing about vitaminwater, an increase of sales is to be expected. vitaminwater must be prepared to handle the increased demand by the time the campaign starts.

Convenience is a very important factor for young consumers, so if vitaminwater is not offered at purchase locations that are easy for them, they will choose a different option even if they would prefer to buy vitaminwater. Our research shows that grocery stores are one of the top places our target market buys their beverages. vitaminwater already uses grocery stores as their primary distribution channel, which will be continued by offering the new bundle packs. Since restaurants are another popular place for our target market to buy beverages. vitaminwater will also increase distribution in restaurants that already carry Coca-Cola products.

E n h a n c e Y o u r M o r n i n g E n e r g y G o - G o R i s e P o w e r - C E n h a n c e Y o u r S y s t e m D e f e n s e E s s e n t i a l R e v i v e X X X E n h a n c e Y o u r C r e a t i v i t y F o c u s S q u e e z e d F o r m u l a 5 0

G l o w

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M E D I A P L A N & T I M E L I N E

M E D I A P L A N & T I M E L I N E

According to the Barna Group’s “What Are Americans Watching” for 2014, we see that the years most popular shows with millennials are: “The Big Band Theory”, “The Walking Dead”, “American Horror Story”, “NCIS”, and “Game of Thrones”. These overlap greatly with generation x’s favorite television shows as well which rank in as “The Big Band Theory”, “The Walking Dead”, “CSI”, “NCIS”, and “Duck Dynasty”. This implies vitaminwater can rest assured that by airing their content on shows that millennials watch, it does not exclude their loyalist group.

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M E D I A P L A N & T I M E L I N E

vitaminwater

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E V A L U A T I O N O F G O A L S

E V A L U A T I O N O F G O A L S

vitaminwater is a well established brand with a strong hold on the enhanced water market. Despite this, vitaminwater has seen a decrease in sales in recent years. We believe this is occurring partially because millennials are starting to see that vitaminwater is not as healthy as it has claimed to be. We have observed vitaminwater is starting to go the route of not making as many health claims and is instead positioning itself as a fun and interesting drink for any occasion as well as praising the concepts of ambition and hard BThrough our campaign vitaminwater

will be able to reach approximately 1250 movie theaters for four months (see figure 7.1), and increase vending machine distribution with the addition of approximately 375 machines (based on the cost of a vending machine from Sam’s Club)35.

Sales Forecasts2014* $674,453,542.002015 $694,687,148.262016 $715,527,762.712017 $736,993,595.59

$(62,540,053.59)

S A L E S F O R C A S T

*2014 sales estimate based on doubling sales as of Q2 given in 2014-15 American Marketing Association Collegiate Case Competition

Based on the “Enhance Your Life” campaign a conservative estimate of 3% increase per year has been projected for the next 3 years. This will increase sales by 62,540,053 dollars in the within the next three years, bringing sales back up past where they were in 2013.

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B U D G E T

B U D G E T

A g e n c y F e e s / C r e a t i v e $ 7 , 5 0 0 , 0 0 0

S o c i a l M e d i a A d v e r t i s i n g $ 1 0 , 0 0 0 , 0 0 0

T h e a t r e A d v e r t i s i n g $ 1 0 , 0 0 0 , 0 0 0

T V A d v e r t i s i n g $ 2 0 , 0 0 0 , 0 0 0

I n c r e a s e d D i s t r i b u t i o n $ 1 , 5 0 0 , 0 0 0

C o n t e s t W i n n i n g s $ 1 , 0 0 0 , 0 0 0

T o t a l $ 5 0 , 0 0 0 , 0 0 0

*20% social media spending based on Coke’s social media budget36

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Based on the 1-5 scale (hate to love)

vitaminwater

Theatre Advertising All calculated based on sources that state advertisements ran through NCM costs $40 per screen to run a 30 second advertisement on the FirstLook39 . Data listed below is based on approximations from data available from NCM40. AMC: # of theaters:345 # of screens: 5000 Weekly Theater Cost: $560 16 Week Theater Cost: $8,980 Total Cost for all Theaters for 16 Weeks: $3,091,200Regal Entertainment: # of theaters:575 # of screens: 7,325 Weekly Theater Cost: $520 16 Week Theater Cost: $8,320 Total Cost for all Theaters for 16 Weeks: $4,784,000Cinemark: # of theaters: 330 # of screens: 4,400 Weekly Theater Cost: $520 16 Week Theater Cost: $8,320 Total Cost for all Theaters for 16 Weeks: $2,745,600Total Advertising Cost for all Three Cinema Chains: $10,621,799

( f i g u r e 7 . 1 )

N o 2 4APPENDIX

vitaminwater

Sorkin, Andrew Ross. “Coca-Cola Agrees to Buy vitaminwater.” The New York Times. May 26, 2007, http://www.nytimes.com/2007/05/26/business/26drink-web.html?_r=1&

Glenn Logan, “Play the SoBe Lifewater Zero Inhibitions Bracket Challenge.” SB Nation: A Sea of Blue, March 16, 2010, http://www.aseaofblue.com/2010/3/16/1376034/play-the-sobe-lifewatertm-zero.

Credeur, Mary Jane and Fineman, Josh. “Coca-Cola Buys Maker of vitaminwater for $4.1 Billion (Update7).” Bloomberg. May 25, 2007. http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aW2zg.b7gBKo

Huston Caitlin, “How I built it: Hint’s Fruitful Take on Water.” Wall Street Journal, February 19, 2014, http://online.wsj.com/articles/SB10001424052702303636404579393233863358714.

vitaminwater Product Description. coca-colacompany.com. Accessed November 27, 2014. http://www.coca-colacompany.com/brands/product-descriptions#glaceau-vitaminwater

“Drink Hint,” Hint Water, accessed November 28, 2014, https://www.drinkhint.com/home-alt#?offset=0&limit=27.

“vitaminwater Nutrition Facts,” vitaminwater.com. Accessed December 3, 2104. http://vitaminwater.com/products/#vitaminwater-power-c

Truong, Alice and Lawson, Sarah. “Hint Water Signs Deal To Bring It To Schools And Hospitals.” Fastcompany.com. Accessed November 28, 2014. http://www.fastcompany.com/3038337/innovation-agents/hint-water-signs-deal-to-bring-it-to-schools-and-hospitals

“vitaminwater Zero Nutrition Facts,” vitaminwater.com. Accessed December 3, 2014. http://vitaminwater.com/products/#vitaminwater-zero-rise

Johnson, Lauren. “Pepsi’s Propel Zero Water rewards athletes via mobile apps.” Mobile Commerce Daily. March 26, 2012. http://www.mobilecommercedaily.com/pepsi%E2%80%99s-propel-zero-water-doles-out-rewards-via-athletic-apps

“What’s In Skinny Water,” Skinnywater.com. Accessed December 3, 2014. http://skinnywater.com/function-nutrition

Sparkling ICE Named Official Sparkling Flavored Water of the LPGA.” LPGA. Accessed November 28, 2014. http://www.lpga.com/golf/news/2012/11/sparkling-ice-named-lpga-partner.aspx

“Form 8-K for Skinny Nutritional Corp,” biz.yahoo.com, last modified January 6, 2014, http://biz.yahoo.com/e/140106/sknyq8-k.html

Sparkling Ice finalizes DSD distribution network.” Sparkling ICE. Accessed November 28, 2014. http://www.sparklingice.com/article/sparkling-ice-finalizes-dsd-distribution-network

“Skinny Nutritional, LLC and Kalil Bottling Co. Join Forces to Distribute SkinnyWater®,” skinnywater.com, last modified October 31, 2014, http://skinnywater.com/skinny-nutritional-llc-kalil-bottling-co-join-forces-distribute-skinnywater

The Bold Meets the Best: Sparkling ICE Signs Endorsement deal with Kevin Durant.” Sparkling ICE. Accessed November 28, 2014. http://www.sparklingice.com/article/the-bold-meets-the-best--sparkling-ice-signed-endorsement-deal-with-kevin-durant

“Skinny Water 0 calories, 0 sugar, 0 guilt,” skinny2o.com. Accessed December 3, 2014, http://www.skinny2o.com/

Lukovitz, Karlene. “Sparkling Ice Launches Campaign Featuring NBA MVP Kevin Durant” Marketing Daily. November 4, 2014, Accessed Dec. 2, 2014. http://www.mediapost.com/publications/article/237529/sparkling-ice-launches-campaign-featuring-nba-mvp.html?edition=77566.

Nielsen AMC Annual 2013

Sean, It’s time to move with hint and Ingress codes (blog). Hint Water Blog. https://blog.drinkhint.com/its-time-to-move-with-hint-ingress

N o 2 5APPENDIX

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“How Millennials Want Brands To Entertain Them (Graph).” Marketingcharts.com. Accessed December 8, 2014. http://www.marketingcharts.com/traditional/4-in-10-millennials-interested-in-co-creating-products-with-brands-25259/

Kortla, Kat, “Advertising your business in local movie theaters : NCM National Cinema Media” Linkedin Blog: Guerilla Marketing for the Printer Cartridge Industry. October 5, 2012, Accessed December 15, 2014. https://www.linkedin.com/groups/Advertising-your-business-in-local-4644392.S.172429481

Goodman, Brad, “Commercials in Movie Theaters” videouniversity.com, Accessed December 15, 2014. http://www.videouniversity.com/articles/commercials-in-movie-theaters.

Lachman, M. Leanne, and Brett, Deborah L. Generation Y: Shopping and Entertainment in the Digital Age. Urban Land Institute. Accessed November 29, 2014. http://www.uli.org/wp-content/uploads/ULI-Documents/Generation-Y-Shopping-and-Entertainment-in-the-Digital-Age.pdf

Kent, Muhtar, interview by Abi Ignatius “Shaking things up at Coke”, Harvard Business Review. October, 2011, Accessed December 15, 2014.

“Search Results: Vending Machine” Sams Club.com, Accessed December 15, 2014

“National CineMedia, Inc. - Annual Report.” National CineMedia, Inc. - Annual Report. February 21, 2014. Accessed December 16, 2014. http://investor.ncm.com/secfiling.cfm?filingID=1193125-14-62920&CIK=1377630

“Potato Salad.” Kickstarter. Accessed December 9, 2014. https://www.kickstarter.com/projects/324283889/potato-salad

Dollar Shave Club launches first TV campaign - 13th November 2014. Mintel. Accessed December 9, 2014. http://0-academic.mintel.com.source.unco.edu/display/722325/?highlight

Marketing to Millennials - US - February 2014. Mintel. Accessed December 9, 2014. http://0-academic.mintel.com.source.unco.edu/display/680599/

Marketing to Millennials - US - February 2014. Mintel. Accessed December 9, 2014. http://0-academic.mintel.com.source.unco.edu/display/695053/

Workforce Communications. Meet Your Students: “The Millennial Generation”. Career Education Review. Accessed Dec 1, 2014. http://celsiusmarketing.com/download/CareerEducationReview-CelsiusAdvertorial-0213.pdf

O’Reilly, Lara. “People Who Felt Tricked Into Thinking vitaminwater Was A Health Drink Might Be Compensated With Cash.” Business Insider. Oct. 22, 2014. http://www.businessinsider.com/coca-cola-glacau-vitaminwater-misleading-advertising-lawsuit-2014-10

A Labor of Like - Millennials 2015 - Favorite Brands Ranking Report. Moosylvania. Accessed November 29, 2014. http://moosylvania.com/millennials/Moosylvania_Millennial_Study_2015.pdf

Council, Arbitron Cinema Adverising. 2007. "2007 Arbitron Cinema Advertising Study." Cinema Advertising Council. Accessed 12 15, 2014. http://www.cinemaadcouncil.org/cac_research_arbitron.php.

Roger, Olivia. Silverscreen Advertising. Convergence Media. March 11, 2014. http://www.wideeyemedia.com/The-Exchange/Study-Proves-Cinema-Ads-Trigger-Heightened-Response/

US Millennials: TV is the Most Influential Advertising Medium. Marketingcharts.com. Accessed December 14, 2014. http://www.marketingcharts.com/television/us-millennials-tv-is-the-most-influential-advertising-medium-41493/

Vending - US - September 2012. Mintel. Accessed December 9, 2014. http://0-academic.mintel.com.source.unco.edu/display/636480/?highlight#hit1

Fromm, Jeff. “The Secret To Bud Light's Millennial Marketing Success” Forbes. October 7, 2014. http://www.forbes.com/sites/jefffromm/2014/10/07/the-secret-to-bud-lights-millennial-marketing-success/

Marketing to Millennials - US - February 2014. Mintel. Accessed December 9, 2014. http://0-academic.mintel.com.source.unco.edu/display/680599/

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N o 2 6APPENDIX

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vitaminwater

N o 2 7APPENDIX

B I B L I O G R A P H Y :A Labor of Like - Millennials 2015 - Favorite Brands Ranking Report. Moosylvania. Accessed November 29, 2014. http://moosylvania.com/millennials/Moosylvania_Millennial_Study_2015.pdf

Council, Arbitron Cinema Adverising. 2007. "2007 Arbitron Cinema Advertising Study." Cinema Advertising Council. Accessed 12 15, 2014. http://www.cinemaadcouncil.org/cac_research_arbitron.php.

Credeur, Mary Jane and Fineman, Josh. “Coca-Cola Buys Maker of vitaminwater for $4.1 Billion (Update7).” Bloomberg. May 25, 2007. http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aW2zg.b7gBKo

Dollar Shave Club launches first TV campaign - 13th November 2014. Mintel. Accessed December 9, 2014. http://0-academic.mintel.com.source.unco.edu/display/722325/?highlight“

Drink Hint,” Hint Water, accessed November 28, 2014, https://www.drinkhint.com/home-alt#?offset=0&limit=27.

“Form 8-K for Skinny Nutritional Corp,” biz.yahoo.com, last modified January 6, 2014, http://biz.yahoo.com/e/140106/sknyq8-k.html

Fromm, Jeff. “The Secret To Bud Light's Millennial Marketing Success” Forbes. October 7, 2014. http://www.forbes.com/sites/jefffromm/2014/10/07/the-secret-to-bud-lights-millennial-marketing-success/

Glenn Logan, “Play the SoBe Lifewater Zero Inhibitions Bracket Challenge.” SB Nation: A Sea of Blue, March 16, 2010, http://www.aseaofblue.com/2010/3/16/1376034/play-the-sobe-lifewatertm-zero.Goodman, Brad, “Commercials in Movie Theaters” videouniversity.com, Accessed December 15, 2014. http://www.videouniversity.com/articles/commercials-in-movie-theaters.

Huston Caitlin, “How I built it: Hint’s Fruitful Take on Water.” Wall Street Journal, February 19, 2014, http://online.wsj.com/articles/SB10001424052702303636404579393233863358714.

“How Millennials Want Brands To Entertain Them (Graph).” Marketingcharts.com. Accessed December 8, 2014. http://www.marketingcharts.com/traditional/4-in-10-millennials-interested-in-co-creating-products-with-brands-25259/

Johnson, Lauren. “Pepsi’s Propel Zero Water rewards athletes via mobile apps.” Mobile Commerce Daily. March 26, 2012. http://www.mobilecommercedaily.com/pepsi%E2%80%99s-propel-zero-water-doles-out-rewards-via-athletic-apps

Kent, Muhtar, interview by Abi Ignatius “Shaking things up at Coke”, Harvard Business Review. October, 2011, Accessed December 15, 2014. https://hbr.org/2011/10/shaking-things-up-at-coca-cola

Kortla, Kat, “Advertising your business in local movie theaters : NCM National Cinema Media” Linkedin Blog: Guerilla Marketing for the Printer Cartridge Industry. October 5, 2012, Accessed December 15, 2014

Lachman, M. Leanne, and Brett, Deborah L. Generation Y: Shopping and Entertainment in the Digital Age. Urban Land Institute. Accessed November 29, 2014. http://www.uli.org/wp-content/uploads/ULI-Documents/Generation-Y-Shopping-and-Entertainment-in-the-Digital-Age.pdf

Lukovitz, Karlene. “Sparkling Ice Launches Campaign Featuring NBA MVP Kevin Durant” Marketing Daily. November 4, 2014, Accessed Dec. 2, 2014. http://www.mediapost.com/publications/article/237529/sparkling-ice-launches-campaign-featuring-nba-mvp.html?edition=77566.

Marketing to Millennials - US - February 2014. Mintel. Accessed December 9, 2014. http://0-academic.mintel.com.source.unco.edu/display/695053/"National CineMedia, Inc. - Annual Report." National CineMedia, Inc. - Annual Report. February 21, 2014. Accessed December 16, 2014. http://investor.ncm.com/secfiling.cfm?filingID=1193125-14-62920&CIK=1377630.

Nielsen AMC Annual 2013"NCM - Advertise." NCM - Advertise. January 1, 2014. Accessed December 16, 2014. http://www.ncm.com/advertise?CenterstageIndex=1.

O’Reilly, Lara. “People Who Felt Tricked Into Thinking vitaminwater Was A Health Drink Might Be Compensated With Cash.” Business Insider. Oct. 22, 2014. http://www.businessinsider.com/coca-cola-glacau-vitaminwater-misleading-advertising-lawsuit-2014-10

“Potato Salad.” Kickstarter. Accessed December 9, 2014. https://www.kickstarter.com/projects/324283889/potato-salad

Roger, Olivia. Silverscreen Advertising. Convergence Media. March 11, 2014. http://www.wideeyemedia.com/The-Exchange/Study-Proves-Cinema-Ads-Trigger-Heightened-Response/

Sean, It’s time to move with hint and Ingress codes (blog). Hint Water Blog. https://blog.drinkhint.com/its-time-to-move-with-hint-ingress/

“Search Results: Vending Machine” Sams Club.com, Accessed December15, 2014, http://www.samsclub.com/sams/search/searchResults.jsp?searchCategoryId=all&searchTerm=vending+machines+gatorade&fromHome=no&_requestid=192718.

Marketing to Millennials - US - February 2014. Mintel. Accessed December 9, 2014. http://0-academic.mintel.com.source.unco.edu/display/680599/

“Skinny Water 0 calories, 0 sugar, 0 guilt,” skinny2o.com. Accessed December 3, 2014, http://www.skinny2o.com/

“Skinny Nutritional, LLC and Kalil Bottling Co. Join Forces to Distribute SkinnyWater®,” skinnywater.com, last modified October 31, 2014, http://skinnywater.com/skinny-nutritional-llc-kalil-bottling-co-join-forces-distribute-skinnywater

Sorkin, Andrew Ross. “Coca-Cola Agrees to Buy vitaminwater.” The New York Times. May 26, 2007, http://www.nytimes.com/2007/05/26/business/26drink-web.html?_r=1&

“Sparkling Ice finalizes DSD distribution network.” Sparkling ICE. Accessed November 28, 2014. http://www.sparklingice.com/article/sparkling-ice-finalizes-dsd-distribution-network

“Sparkling ICE Named Official Sparkling Flavored Water of the LPGA.” LPGA. Accessed November 28, 2014. http://www.lpga.com/golf/news/2012/11/sparkling-ice-named-lpga-partner.aspx

“The Bold Meets the Best: Sparkling ICE Signs Endorsement deal with Kevin Durant.” Sparkling ICE. Accessed November 28, 2014. http://www.sparklingice.com/article/the-bold-meets-the-best--sparkling-ice-signed-endorsement-deal-with-kevin-durant

Truong, Alice and Lawson, Sarah. “Hint Water Signs Deal To Bring It To Schools And Hospitals.” Fastcompany.com. Accessed November 28, 2014. http://www.fastcompany.com/3038337/innovation-agents/hint-water-signs-deal-to-bring-it-to-schools-and-hospitals

US Millennials: TV is the Most Influential Advertising Medium. Marketingcharts.com. Accessed December 14, 2014. http://www.marketingcharts.com/television/us-millennials-tv-is-the-most-influential-advertising-medium-41493/

Vending - US - September 2012. Mintel. Accessed December 9, 2014. http://0-academic.mintel.com.source.unco.edu/display/636480/?highlight#hit1

vitaminwater Product Description. coca-colacompany.com. Accessed November 27, 2014. http://www.coca-colacompany.com/brands/product-descriptions#glaceau-vitaminwater

“vitaminwater Nutrition Facts,” vitaminwater.com. Accessed December 3, 2104. http://vitaminwater.com/products/#vitaminwater-power-c

“vitaminwater Zero Nutrition Facts,” vitaminwater.com. Accessed December 3, 2014. http://vitaminwater.com/products/#vitaminwater-zero-rise

“What’s In Skinny Water,” Skinnywater.com. Accessed December 3, 2014. http://skinnywater.com/function-nutrition

Workforce Communications. Meet Your Students: “The Millennial Generation”. Career Education Review. Accessed Dec 1, 2014. http://celsiusmarketing.com/download/CareerEducationReview-CelsiusAdvertorial-0213.pdf

N o 2 8APPENDIX

B I B L I O G R A P H Y

C O N T I N U E D

vitaminwater

vitaminwaterE N H A N C E Y O U R : L I F E