AMA Vitamin Water Template - American Marketing Association


Marketing Plan!
Relaunch 2014-2015
1
Table of Contents!
VitaminWater Relaunch 2014-2015
Executive Summary ……………………………1"
Situational Analysis …………………………….2"
Marketing Research …………………………3-5"
Segmentation ……………….……..…..……6-10"
"
Target Market ……………………………….6"
"
Positioning ……………………….…………7"
"
Strategy ……………………..……………8-9"
"
Objectives ……………………..………….10"
Marketing Tactics ………………………….11-12"
Measurement & Evaluation ………………13-14"
Budget………………………………………15-18"
Timeline of Events…………………………19-20"
Appendix ………………………..………….21-23
"
Executive Summary
Glacéau VitaminWater is a popular nutrientenhanced beverage owned by Coca Cola.
Although VitaminWater currently remains the
market leader of this industry, they have found
themselves struggling to remain on top. Due to
increasing competitor efforts and continuous
changes in consumer preferences, it is more
important than ever for VitaminWater’s marketing
efforts to remain strong and prevalent in the
consumer’s minds. Our chapter of the American
Marketing Association has created a marketing
plan that will help improve the presence of
VitaminWater, customer awareness, accessibility,
and overall improvement of the brand.
"
1
Situational Analysis
Strengths!
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Sponsorships with singers,
entertainers (i.e. Kevin Hart, Carrie
Underwood)
Enticing names for drinks
Colorful Packaging
Variety of places to purchase
Currently transitions to being more
modern
Good label design
Favorable product breadth
Weaknesses!
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Opportunities!
"•
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Fulfill health conscious consumer
needs
Promote the benefits of vitamins used
(ex: Gatorade emphasizes pre,
during, post activity drinks)
Present VitaminWater as a casual,
rather than sports oriented drink
Target 30-39 year olds: tag as “feel
young again” brand
Find their defining brand, style; create
a “lifestyle brand” around it (ex: Nike
w/ the swish)
Target colleges/ High/ Middle Schools
A new shape to reinvent, differential
from Gatorade bottle
Show it in action (ex: brand in the
healthy lifestyles)
Create more advertisements
No commanding market leader
Costs more than competitors
Lack of image compared to
competitors such as Sobe Lifewater,
Propel, etc.
One size of bottle
Locations: highest demand is not
where highest amount in being
placed
Not environmentally friendly
Too many flavors, discontinued
flavors; focus should be on most
popular
Not a huge taste difference between
flavors
Website - too different, confusing, no
information about the company,
attractive but not user friendly
Need to promote brand more on
social media
Threats!
"•
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Competition against other enhanced
waters
Lawsuit has been filed for blame for
promoting obesity
Low brand awareness
Not as healthy as advertised
Little reliability to consumers
2
Marketing Research
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In order to create a successful relaunch and brand repositioning for
VitaminWater, we decided to conduct a thorough marketing research project in
order to better understand the product and the desires of potential consumers.
We conducted primary research through a variety of methods such as surveys
and multiple focus groups. Through conducting primary research, we were able
to better understand VitaminWater through the eyes of the consumer. The
results we obtained helped us pinpoint the strengths and weaknesses of
VitaminWater and allowed us to formulate a conclusive and strong Marketing
Plan. Our strong marketing research results provided us with valuable
information that will help VitaminWater better appeal to its core target market
and successfully reposition its brand. "
"
To begin, we conducted several focus groups. We had 4 groups with
8-10 people in each. Participants ranged from the ages 18 to 24 and were all
college students. Two questions started off the conversation by asking, what
beverages do you normally purchase and what brands come to mind when you
think of enhanced water? Only half of the participants actively thought of
VitaminWater before they knew it was the product we were studying. "
"
We then passed out five different flavors of VitaminWater; energy,
essential, focus, revive and dragonfruit. We asked participants if they had heard
of this brand before and if they had every tried it. Every single participant
answered yes to both questions. However, we then asked when the last time
they drank it was and only a few participants had one in the past month. The
majority said they haven’t had it in a few years. Before drinking the samples we
had the participants look at the packaging and asked them their initial thoughts.
Some of the individuals liked the packaging and others thought it could use a
change. The consensus of the groups was that they liked the colors of the
packaging and the fun names and slogans for each bottle. However, they
agreed they would like a sleeker bottle."
"
Next, we had the participants sample the five flavors. Some questions
we asked after them tasting the samples were which flavor was your favorite?
Which did they like the least? Although we weren’t focusing on changing the
taste of the product for our marketing plan, we thought it was helpful for them to
get a full grasp of the product and we asked if they thought the packaging
matched their initial perception of the brand. This brought an interesting point to
the conversation. They said it tasted like a healthy beverage, but they really
didn’t know much about the vitamins prevalent in the drinks. This made us
realize that VitaminWater needs to focus more on marketing the benefits to
target health conscious consumers.
3
Finally, we directed the conversation to focus more on the advertisements of
VitaminWater. We began by asking if anyone was able to recall the current
slogan of the brand. Not a single person could name the tag “Hydrate the
Hustle.” Once we told them the slogan, they all agreed they liked it, but they just
had never heard it before. This shows that it needs to be marketed better. Next,
we showed two advertisements of VitaminWater, an older commercial that
features 50 Cent and a newer one that features Kevin Kart. Each person liked
the humor behind the brand, but agreed it didn’t help them see the benefits of
the brand. In fact, many of the participants had seen the ads before but hadn’t
even remembered that it was a VitaminWater ad. They think their ads could be
improved by finding a balance between the humor and on the brand and on the
actually benefits the drink brings to consumers."
"
The next primary research we conducted was a 21-question survey. We
had 90 participants, 75% between the ages of 18-24 years old. In this survey
we began by asking similar questions as we did in our focus group. The data
from our initial questions shows that 99% of the respondents had heard of the
brand VitaminWater and 89% had tried it before. We then asked respondents to
rate the following aspects of the brand compared to one another: quality,
product packaging, taste, and product advertisements. As you can see on figure
1 the lowest rated aspect was advertisements, which shows that we need to
focus on creating more engaging content ads.
Market Research
Figure 1: Rate the following aspects of VitaminWater on a scale of 1 to 10.
We then asked if respondents knew the slogan for VitaminWater and
only 8% were able to correctly identify it. We then asked the last time the last
time they recalled seeing or hearing a VitaminWater advertisement. As you can
see from figure 2 the majority of people- 57% couldn’t recall any advertisements
and 21% could only recall and ad in the past year. This really shows that we
need to increase the number of ads VitaminWater is making.
4
Figure 2 When was the last time you recall seeing or hearing a VitaminWater
advertisement?
Market Research
"
Overall, these focus groups helped us learn more about consumer’s
perceptions of VitaminWater. The main takeaways we received from this
primary research is that we need to significantly increase VitaminWater’s
presence. Not only do they need more advertisements, but we also need the
advertisements to produce a stronger message that shows the benefits behind
the product. In particular, showing consumers what vitamins are in the drinks
and why they are good for you. The research we have gathered, has helped us
direct this marketing plan and how we will reach our target consumers.
5
Segmentation:!
Target Market, Positioning, Strategy, & Objectives
"
Target Market
"
To successfully market any product, VitaminWater must identify accurate
and approachable target markets, they then must determine how to position
themselves in the eyes of the specified consumers, articulate a strategy to
implement, and define their objectives in performing its execution. "
"
"
With so many diverse features that the product offers to consumers,
VitaminWater should take advantage of the full market who would be interested
in the product. In doing so, we have identified three main segments of targets
that the brand should aim their campaigns towards. "
"
"
The first of these three segments targets college students ages 18-24
years old. These consumers tend to be on the go and incredibly busy, trying to
balance school and social lives. Their finances may be supported by either their
parents or themselves, typically restricting them to a limited budget. These
individuals are up to date with current trends and may be viewed as early
adopters in the consumer adaptation life cycle. "
"
"
The second segment targets busy individuals who are new parents or
career driven consumers. These consumers are typically aged 30-39 years old.
Compared to the consumers in the first segment, these individuals are
financially stable and can afford desired lifestyles. This market segment is
always on the go, and look for products that match their fast pace. With this in
mind they are also more conscious about their purchasing decisions and the
benefits or drawbacks the products they choose can have on their health. "
"
"
The third segment targets athletes and health conscience individuals.
The consumers in this segment have varied ages and can overlap with the
other two segments as well. They value products that align with their lifestyles
and promote their healthy choices, rather than inhibit them. "
"
"
All three of these segments demand convenience in their life. The
individuals in each segments all have their own demands that they must meet,
whether that be in school, work or from the family. Therefor they need products
that align with such a lifestyle. Immediate gratification has never been more
important to the consumers, especially in today’s society where most individuals
are accustomed to this in all aspects of their life thanks to rapidly improving
technology.
6
"
Positioning
"
VitaminWater is currently on the radar of consumers as a pastime
beverage. Many consumers no longer find it to be their “go to” thirst quencher.
In order to help change consumer mindset, the brand must position themselves
to be more desirable. To accomplish this goal, VitaminWater should really focus
on celebrity endorsement that each target segment can relate to. This will help
to create a positive image and memorability for the brand to remarket itself. "
"
"
Some of the top competitors of VitaminWater (gatorade, powerade, etc)
are utilizing their athletic image to gain professional athlete endorsers. To take
VitaminWater to the next level, and remind consumers that it is not just another
sports drink, the brand can utilize celebrities who align with the chaotic lifestyles
of each segmented market. In doing so, the brand can attempt to attach a
specific celebrity to each flavor. "
Segmentation: Positioning
"
"
In creating this association, consumers will see that VitaminWater is
suitable for the everyday individual, not just athletes. Motivated individuals need
the same nourishment as athletes making this product suitable for both
markets. Utilizing the current slogan of “hydrate the hustle”, VitaminWater can
show that the product is for the everyday “hustler”. In turn, consumers will feel a
sense of appreciation that others acknowledge the hard work busy individuals
put in everyday. This product has superior value over competitors for everyday
activities and is a healthier alternative to soda and high sugar products. It is
necessary for VitaminWater to rebrand itself as a drink that can fit into the
everyday lifestyle of the 21st century and remind consumers that there is a
“hustler” in all of us. "
7
"
Strategy"
"
There are two important factors that must be accomplished in
VitaminWater’s Strategy. First the company must be an overall strategy and
attitude that can be applied to all three of the segmented markets. Second, a
specific strategy must be adopted individually for each of the three segmented
markets. "
"
"
For the first segment, the strategy should stem from campus promotions.
College demonstrations have become a strong marketing tactic over the years
because they get the targeted consumers involved and helps raise brand
awareness. In doing so, VitaminWater could create an experience at every
college campus, showing student firsthand not only the product, but also the
attitude and lifestyle of VitaminWater. Even if students do not like the product,
they will not forget their experience with the brand. Through the incorporation of
complementary products such as key chains, koozies, lanyards, etc,
VitaminWater can ensure that their product name will be dispersed all over
campus. "
Segmentation: Strategy
"
"
As an extension of the college campus promotions, VitaminWater could
create the “VitaminWater Games”. Similar to a miniature Olympics, the brand
could create a nationwide promotional tour in which they feature all brand
incorporated games and bring them to campuses and host interactive
competitions among students. For example: an obstacle course, a sumo boxing
ring, etc. This would give college students something to get excited about with
the brand, and create a positive association with VitaminWater for many college
students. VitaminWater could benefit from on campus promotions through their
website, YouTube, or Facebook page. The great part about this strategy is that
it is sustainable, the promotions team could return to the same schools each
year and market themselves to both new students and those that remember the
demonstrations from the previous year."
"
"
To appeal to the third segment, VitaminWater could develop an annual
event that is based around physical activity. Partnering with a pre existing
foundation or cause could help take this event to the next level in terms of
participation. A 5k walk to raise awareness for the cause solely sponsored by
VitaminWater could help the brands philanthropic efforts but also raise
awareness for that third segment. "
"
"
YouTube is a free outlet for brands to utilize as a hub for all recorded
promotions. To utilize VitaminWater’s new celebrity endorsements, a series of
YouTube interviews/commercials should be recorded to show how these celebs
“hydrate their hustle”. The video would be done in interview format with the
celeb describing how they get it done and how VitaminWater helps them do
that. Clips of them in the act could be shown enforcing that they are real people
8
too. The design scheme would be in solely black and white. The only color in
any of the videos would be the VitaminWater bottles. This would really help to
showcase the product and draw attention. It would also be very memorable to
consumers. Some celebrities that should be showcased for the first segment
could be Kevin Hart (continually), Seth Rogen & James Franco, Scott Disick,
and Chance, the rapper. Some celebrities that should be showcased for the
second segment could be Jessica Alba, Jennifer Aniston, Donald Trump, Betty
White, and the Wahlberg family. Some celebrities that should be showcased for
the third segment could be Tom Brady, the Manning Family, the Gronkowski
family, Maria Sharapova, Venus & Serena Williams, and Natalie Gulbis."
"
"
These videos would help to increase website traffic and to create a
brand image relatable to each segment. It would help to showcase
VitaminWater as the drink that participates in the road to success. "
"
"
It is safe to say that consumers in all segments watch television. This
being said, VitaminWater needs to incorporate their revamped “Hydrate the
Hustle” campaign in new commercials. These ads should be shown during
sports events, in the evening, or at the start of the work day to cater to each
segment viewers. They should also be shown on networks such as ESPN,
MTV, VH1, E TV, FX, ABC, NESN, NBC, FOX, and Comedy Central. These ads
could be short clips of the whole video interviews that are show on social media
sites of celeb endorsers. Viewers would only be able to view and hear part of
the story and would have to go to the website to see the rest. "
Segmentation: Strategy
"
"
To accompany the “Hydrate your Hustle” celebrity endorsed campaign,
VitaminWater could develop a contest for consumers to develop videos of how
the product helps them hustle. This would increase brand awareness, create
motivation, and develop engagement with the product. The campaign winner
could win a prize as well as a national commercial shown of their video. "
"
"
Contests always entice consumers, especially when there is a great
prize. To increase user engagement, VitaminWater could develop a “create the
next flavor” campaign. Through commercials and social media, users must
create a unique and enticing flavor and get other users to vote for their flavor as
the best. The top three voted flavors could be developed into real
VitaminWater’s that would be distributed to the public. The contest would then
be determined based on votes for the best tasting flavor. The winner would,
again, earn a prize of some sort and their flavor would be a new permanent
kind in the brands vast repertoire. All of the contest would link back to the
brands original websites and pages to increase traffic. "
9
"
Objectives
"
There overall objective of the new VitaminWater marketing strategy is to
persuade consumers to reinvest themselves into the VitaminWater brand. Our
goal is to have consumers reconsider the well known brand and recognize the
benefits it provides for every individual and how it is easily adaptable to your
(the consumer) lifestyle. "
"
"
In terms of the first segmented group, the college students, the objective
is to change the consumers attitude in recognizing VitaminWater as a fun, and
active drink. A drink that they can have with them studying in the library,
lounging on the quad, or living it up on the weekend. Students must recognize
this is a versatile drink that fits both their fun and fearless lifestyle as well as
their studious side."
"
"
In the second segmented group, the chaotic newly established adults,
the objective is to have consumers recognize how easily accessible the product
is. That these adults are able to get their daily dose of vitamins while they are
pushing their three year old around on the tricycle outside. Multitasking is
essential in their life, so VitaminWater must make themselves apart of this. "
Segmentation: Objectives
"
"
The objective in the final of the three segmented groups, the health
conscious and athletes, is to ensure that they recognize that this is a healthier
alternative to soft drinks and some juices. It is a healthy choice that is still fun,
making training sessions seem a little less demanding and little more positive!
10
Marketing Tactics
The current price for a 20oz VitaminWater is $1.09, but our goal is to
change this to the $1.50-$2.00 price range to boost revenue. This price range
is based off the prices of our competitors such as Propel $1.29 16oz, Gatorade
$2.13 32oz, and Powerade $1.33 20oz. Another reason we suggest this price
is to maintain a prestigious brand image, while also giving consumers value for
their money. We want our market to value all that this nutrient filled drink has to
offer. We plan to sell each 20oz bottle for $2 and offer a 2 for $3 deal to boost
sales."
"
To display VitaminWater in a never before seen manner, each vendor
selling it should have one of our exclusive VitaminWater fridges (in shape of
bottle, rotating) to display the product in the most appealing way. This creates a
distinct visual appeal for our brand to stand out amongst others."
"
We will keep current the distributors such as grocery stores, convenience
stores, and gas stations. In addition we will expand to gyms, sporting goods
stores, pharmacies, and wellness stores, vending machines/fountain drinks.
This will make the product available to more people, in a variety of different
places. VitaminWater is a beverage that can be consumed during any daily
activities so it is vital that the product be available in a multitude of locations. "
"
To better promote VitaminWater we want to create a refillable water
bottle. This could potentially be sold in a bundle with the product, or as part of a
promotion if buyers purchase a certain amount of our products. It could also be
sold on its own to market the brand as whole. This would be a good way to get
the VitaminWater image seen by more people."
"
In regard to the product and packaging design we have came to an
agreement that a thinner and taller bottle would enhance the overall appeal of
the bottle. Our intention is to create a sleeker, more modern image by
narrowing the middle of the bottle in effort to construct an easier grip. So the
overall look of the bottle is "curvy" rather than it's current "bulky" presentation.
With thinner plastic, this newly improved bottle is eco-friendly.The cap will be
part of the “collectible caps” that consumers can collect with health facts and
promo specials. The cap will be the same color as the label (which will be
intended to contrast the color of the specific flavor)."
"
As mentioned, we will use colors on the label that contrast with the color
of the flavor. To follow our sleeker/more modern image, the label will contain
less words and the ingredients will be placed on the inside of the label. Doing
so, will transform the compact, overwhelming label into a clear and concise
11
image. The label will also be more translucent. In addition we agreed that
presenting the nutritional benefits somewhere on the label would be an effective
way to lure consumers in. Also, we agreed on either including a funny story or
compliment."
"
The current VitaminWater tagline is, “Hydrate the Hustle”, while this is a
positive and creative campaign our focus groups determined that it is not very
well-known. To increase campaign awareness we would like to add the
hashtag, “#HydratetheHustle” to all VitaminWater products and advertisements.
We want to stress the fact that anything someone is passionate about can be a
“hustle”; whether consumers are climbing a mountain, running a race, getting
errands done, or rushing to the office. Hustling is all about reaching your goals,
whatever they may be. Consumers should know that this is the drink for all life’s
activities and obstacles. In addition to, “Hydrate the Hustle” we have come up
with some catch phrases:"
• Fuel your Future"
• Experience the Hydration"
• Hydrate your Experience"
• The Vital Water"
• Drink to discover"
• Unique water for a unique you"
These taglines can be used as fun anecdotes in the product label and under the
bottle cap giving the consumer a little more to look forward to. "
"
In order to reach a broad spectrum of customers, we decided to use
different kinds of celebrities. To reach the younger generation we propose using
OneDirection or Taylor Swift because they are an up and coming and have
worked hard to achieve their success. For the more sporty consumers we want
to use an Olympian like Shawn Johnson or an adventurer like Bear Grills. For
those who have hustled longer we hope to use a celebrity like Betty White who
has hustled throughout her entire career."
Marketing Tactics
"
In order to advertise VitaminWater, we want to reach out to many
different age groups involved in different activities. So, we decided we want to
market VitaminWater on trendy music apps like Pandora and Spotify. In
addition, we want to market VitaminWater on television stations for ESPN, E!
News, and MTV. That way, whether you are listening to music at the gym, in
your car, doing homework, or watching TV, there will be daily reminders
through advertising to buy VitaminWater. Finally, we would like to generate a “fit
app” for VitaminWater that users can download on their mobile device to read
healthy tips, news, hustle success stories, view workout videos and more!
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Measurement
& Evaluation
1. Goal: Increase social media interactions and reach"
Social Media is a communication and marketing platform that has been
expanding for many years. Our goal is to expand VitaminWater’s social
media reach and effectiveness even more. While keeping with the
#HydratetheHustle slogan and themes, we will measure its efficacy by
setting goals for consumer interaction on social media. The chart below
shows statistics for VitaminWater’s three main social media platforms and
for two of VitaminWater’s competitor’s platforms.
Data taken on 11/20/14
Facebook Instagram
Likes
Vitamin"
Water
Posts
Twitter
Followers Following Tweets
Following Followers
4.1 M
293
10,763
67
10.4 M
88,664
128,000
SoBe
822,151
N/A
N/A
N/A
7,313
3,937
9,408
Propel
510,947
82
412
746
4,227
483
3,492
Although there is a significant discrepancy between VitaminWater and its
competitors, there is still not much awareness of the #HydratetheHustle
campaign. The goals for these three platforms are laid out below to be
met within the first year of implementing the plan:"
• Facebook: 5% increase in Likes"
• Instagram: Increase posts that relate to everyday life theme rather than
emphasis on celebrities"
• Twitter: 5% increase in followers"
"
2. Goal: Improve Traffic to Lead Ratio!
In order to evaluate the effects of social media advertising and other
forms of promotions, small focus groups will be done. The core of the
discussions will center on the ways in which consumers are gaining
awareness of the brand and the social media campaign. This will help
the company redistribute advertising budgets to areas that are more
effective than others."
"
3. Goal: Increase Sales By Greater Amount Than Previous Year!
The overall sales will be evaluated but emphasis should be focused on
the product margins of each different sku of the VitaminWater brand.
Investigation of the demand for the different flavors of VitaminWater can
assist in determining if individual flavors are a burden on the final sales.
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4. Goal: Increase Customer Satisfaction!
The extent to which the marketing plan has increased customer
satisfaction will be tested through mainly indirect interactions with
customers. This will include surveys on social media and the
VitaminWater website. Also, the bottles themselves or the caps will be
printed with links to customer satisfaction questionnaires. "
"
5. Goal: Compare to Trends in Competition’s Growth!
Some of the main competitors of VitaminWater include SoBe and Propel.
Other similar competitors are Gatorade and Aquafina. We are interested
in differentiating from the sports drink categories and promoting
VitaminWater as a beverage for your everyday hustle. Once again, this
goal can be tested through the surveys and focus groups where we will
gain direct interaction with the customers who will drive the success of
the brand."
Measurement & Evaluation
"
6. Goal: Improve Distribution Efficiency!
Placement of the product is essential to acquiring the desired target
audience. Although we are interested in increasing the demand from the
18-24 age group, if the venues that this group of people is shopping at
are not demanding a greater supply of the product, it may be more
beneficial to move distributions elsewhere. We will evaluate the demand
from various types of buyers including Walmart, convenience stores,
schools, and supermarkets.
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Budget
"
The budget range for the proposed marketing campaign is between $40
-$60 million. This budget should cover all costs from creative development and
media buying to promotions and merchandising to product packaging. It is
incumbent on the case teams to provide a realistic budget estimate."
"
"
Our goal with this budget is to first bring VitaminWater back to its peak
sales and in time have the brand excel beyond its previous record revenues.
Peak sales were in 2009 at $1,016,626,320, while 2013 ended with only
$723,307,270. So far, 2014 looks like the slowest year yet; our comprehensive
marketing campaign will strive to increase sales at a steady rate over the next
three years in hopes to continue growing as the top flavored water brand.
Expense:
Inflow
Initial Amount
$60,000,000
Outflow
Product Packaging
$15,000,000
Creative Development
10,000,000
Media Buying
15,000,000
Promotions
10,000,000
Merchandising
10,000,000
Product Packaging: The expense of product packaging will have a slightly
higher outflow amount than other expenses due to the proposed new bottle
design. The product packaging costs include the cost for new bottle molds,
translucent wrapper designs, and research and implementation of a thinner,
more eco-friendly plastic. With slightly more money to spend, the bottle can
reach its ideal look to help revamp the image of VitaminWater. "
"
Creative Development: We will need to hire the best marketers, designers,
and publicity personnel to implement the plans for our campaign, we plan to
pay competitive rates so as to ensure that we get the best talent on our team.
Moreover, we will send our current marketing department to classes and
training sessions to make sure they can improve any skills that will profit this
campaign and the company as a whole.
15
Media Buying: The expense of media buying will have a slightly higher outflow
amount than other expenses due to the proposed celebrity endorsers.
Obviously, with more well-known names becoming the faces of the brand, the
price will not be inexpensive. We need to allocate sufficient funds so that all
target markets have the appropriate face to connect to the brand with. "
"
Promotions: Majority of promotions can be relayed via social media sites
where many of the target market resides. This will help decrease promotions
costs and allow for more money to be allocated for the brand image. Many of
the promotions can be done using a low budget format and duplicated for each
market using different endorsers. "
"
Merchandising: With a few key assets that can become the desired
merchandise of the brand, merchandising can help to make product association
among consumers. "
"
Sales Forecast:"
Budget
September 2015- August 2016!
2013 ended with $723,307,470 in sales; approx $60,275,623 per month and
predictions put 2014 at even lower sales. However with our totally renovated
marketing campaign, 2015 should prove to show higher sales. The forecast
starts off slow from the year prior and little campaign awareness. We see more
sales in the late spring and summer months due to the campaign becoming
more well known and seasonal increase in demand. Overall sales for 2015 are
estimated to be approximately $800,000,000. At the year’s end consumers will
be more familiar with the VitaminWater brand because of the heavy social
media presence, cutting edge TV and streaming radio advertisements, as well
as the new sleek design.
16
Month
Sales Forecast
Percent Growth
September
$ 40,000,000
October
45,000,000
12.5%
November
50,000,000
10%
December
53,000,000
6%
January
55,000,000
4%
February
60,000,000
10%
March
70,000,000
16.7%
April
75,000,000
7%
May
82,000,000
9.3%
June
85,000,000
4%
July
90,000,000
6%
August
95,000,000
5.3%
Budget
September 2016- August 2017!
2015’s sales proved to fall right between 2012 and 2013, the continued
campaign through 2016 should bring yearly sales to about $1,000,000,000;
right below the peak sales of 2009. Since the campaign has been going strong
for about a year at this point, September will be a strong month, then sales will
slow down during the winter months due to decreased seasonal demand and
shoot back up again from spring and summer.
Month
Sales Forecast
Percent Growth
September
$96,000,000
1%
October
84,000,000
-12.5%
November
80,000,000
-4.7%
December
70,000,000
-12.5%
January
72,000,000
2.9%
February
73,000,000
1.4%
March
76,000,000
4.1%
April
80,000,000
5.3%
May
84,000,000
5%
June
90,000,000
7.1%
July
95,000,000
5.5%
August
100,000,000
5.3%
17
September 2017- August 2018!
After last years amazing increase, 2017 should be the best year to date. Our
estimates put sales at 1,500,000,000. With the campaign continuing to employ
innovative new packaging, popular celebrity endorsers, and appealing ads
sales will continue to grow. September will start off strong, winter months may
show low sales increases due to decreasing seasonal demand while spring and
summer will prove to be higher than ever due to campaign growth and of
course peak summer sales, as were seen in previous years.
Month
Sales Forecast
Percent Growth
September
$107,000,000
12%
October
115,000,000
1.7%
November
116,000,000
.8%
December
118,000,000
1.7%
January
119,000,000
.8%
February
120,000,000
.8%
March
122,000,000
1.6%
April
124,000,000
1.6%
May
133,000,000
7.3%
June
136,000,000
2.3%
July
140,000,000
3%
August
150,000,000
7.1%
Budget
Timeline: The implementation plan runs from September 2015 through
December 2016. Refer to next section.
18
Timeline of Events
19
Timeline of Events
20
Appendix
21
Focus Group Script & Questions
"
Date: November 14 , 2014!
"
th
Appendix: Focus Group Information
Start the focus group by stating the following script: !
“Thank you for agreeing to be apart of our focus group. We appreciate your
willingness to participate. Our American Marketing Association Chapter has
been given the opportunity to compete in a case competition against other
chapters nationally and we are conducting this focus group to obtain
information and opinions about a product for this case. We have been asked to
conduct primary research, which is the purpose of this focus group."
"
“Here are some ground rules:"
1. We want you to do the talking"
o We would like everyone to participate"
o We will go around the table and have each of you answer the
questions we ask"
2.
There are no right or wrong answers"
o Please speak up if you agree or disagree with an idea "
3.
We will be recording this group conversation"
o Please speak loudly"
o We want to capture all ideas and opinions"
o Your responses will remain anonymous"
"
Again, thank you for your participation in this focus group. We will now begin by
having each participant introduce him or herself.”"
"
*Ask each participant to say his or her name, major, and hometown.!
"
Now begin the questions:!
1. What beverages do you normally purchase?"
2. What brands come to mind when you think of enhanced water?"
"
*Pass out bottles of VitaminWater!
"
3. Have you ever had VitaminWater?"
4. If you answered yes, how often do you drink it?"
5. What do you like about VitaminWater?"
6. What are your favorite flavors of VitaminWater?"
7. What comes to mind when you think of VitaminWater?"
8. What kind of person do you think drinks VitaminWater?"
9. Do you consider VitaminWater to be a healthy drink?"
10. What age group do you think VitaminWater should target?"
11. What is your first impression of VitaminWater’s packaging?"
12. What do you think should be changed about VitaminWater’s packaging?
22
*Have them sample VitaminWater!
"
13. Did you like the taste of this beverage?"
14. What would you change about the taste of this beverage?"
15. Does the taste match your initial perception of the beverage?"
"
"
Appendix: Focus Group Information
*Show advertisement of VitaminWater!
16. What are your initial reactions to this advertisement?"
17. What did you like about it and what did you not like about it?"
18. Had you seen this advertisement previous to this focus group?"
19. Can you recall any other VitaminWater advertisements you’ve seen? If
yes, when is the last time you saw it."
20. Overall, how effective do you think VitaminWater’s advertisements are?"
21. Overall, how do you think they can improve their advertisements?"
22. Is there anything else that you have to say about VitaminWater that you
feel would be beneficial to our study?
Appendix Figure 1
Appendix Figure 2
23