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7Up Media Plan Promotes Honey Ginseng Flavour
1. MCOM18-101 MEDIA PLANNING | KIP TUCKWELL
7Up Creative & Media
Advertising Plan
Christina Hewitt, Jessica Dunning, Natalie Graham,
Franyka Frederick, Kyle Bouwmeister
11/22/2012
2. Executive Summary
Challenge:
Having to compete with so many of its sister-brands within PepsiCo the brand of 7Up has been falling out
of view by PepsiCo’s advertising for some time. Feeling neglected it’s time for a repositioning that
focussed on a different side of 7Up other than their lemon-lime flavour. Along with a new image the target
market is changing as well turning towards the younger next generation of consumers within the
teenage/young adult markets.
PepsiCo and 7Up has requested the launch of a new flavour targeted towards a new target market profile of
consumers. The campaign will focus on creative and media advertising for a Canada-wide launch in June
2013 until May 2014. A new packaging design will be needed along with the creative work. The budget for
this plan is $2,000,000.00CAD.
Recommendations:
The new advertisements for 7Up will communicate that the brand now offers a healthier alternative –
honey and ginseng flavour. 7Up Buzz will play up these two key ingredients with print advertisements. The
advertisements will feature the image of the new bottle with the label clearly displayed.
In addition to the new bottle design, PepsiCo will continue to promote the use of the eco-green bottles. The
environmentally friendly bottle works well with the honey and ginseng flavours, driving home the
“healthier alternative” idea.
The ginseng property of the new flavour helps promote the idea of being alert. Students typically turn to
coffee, tea, or even energy drinks to achieve this result, but would now be able to select 7Up Buzz as an
alternative.
3. Market Review
Within the non-alcoholic beverages market, soft drinks are the largest division in Canada. This market has
reached its mature stage, and brings in roughly $4 billion annually. 25% of these sales come from
flavoured soft drinks.
In the United States, PepsiCo has a market share of 27%, while Coca-Cola sits at 34%. The Canadian
market has approximately the same figures. That being said, the soft drink market is the largest segment in
the cold beverage market, accounting for 16%.
Over the past decade, the carbonated soft drink market has seen consumption decline by 30%.
This decline can be attributed to the desire for healthier drink options, which has become much more
prevalent. The demand for water, teas, fruit juices, coffee, and sports drinks has increased, leading to a
drop in sales for soft drinks.
Sales revenue has not dropped as much as consumption. Soft drinks have actually increased in price and
this helps prevent the loss of profit as consumption decreases.
As consumers move toward a healthier drink option, it is recommended that 7Up offers a flavour that fits
this growing trend. As 7Up is not the most popular soft drink offered by PepsiCo, the new flavour will not
only help attract the health conscious consumers, but it will also reflect positively on the 7Up brand.
Competitor Review
Coca-Cola is company that owns Coke, Diet Coke, Fanta, Barq’s Rootbeer, and Sprite. Falling into the
same position as Pepsi-Cola, it seems Coca-Cola is forgetting about Sprite as well. Coca-Cola has been
aggressively promoting its dominance and superiority in taste and quality against Pepsi-Cola products.
There seems to be a “dark cola war” going on and the two companies are caring less about their other
brands, such as 7Up and Sprite.
Coca-Cola constantly promotes its social responsibility sponsoring events like the Much Covers Contest,
promoting their white cans to help polar bears, and partnering with Apple to create iCoke Points, which
consumers collect for prizes. Coca-Cola funds missionary trips to third world countries, along with the
production of needed resources.
The company uses humour in its product differentiation commercials. They have a Facebook page, Twitter
handle, a blog, and video channels on their websites. The websites themselves are highly interactive with
games, recipes, and lifestyle/wellness facts.
4. Brand Review
7Up markets itself as a refreshing lemon-lime flavoured soft drink. The drink was first introduced to the
market in 1929 and quickly became the third most popular soft drink in North America. Today it is owned
by PepsiCo (and the Dr Pepper Snapple Group in the US). 7Up is still a popular brand but is not doing very
well compared to other soft drinks such as Coca-Cola, Sprite, Crush, and many other flavoured soft drinks
available on the market.
In the past 7Up has had success with ad campaigns such as "The UN Cola". These focused on the fact that
7Up does not contain caffeine, which is seen a benefit by many parents as it is marketed to children and
teenagers. The first variation of 7Up was Cherry and Diet Cherry, the new flavours were an instant success
among children and tweens.
Recently 7Up has released new flavours; Cherry, Pomegranate, and Mixed Berry, all with antioxidants.
Each antioxidant flavour is available in regular and diet. Antioxidants are the latest health craze, and 7Up is
trying to appeal to health conscious people by adding them since carbonated drinks are labelled as
unhealthy.
7Up's television and print ads appeal to a young audience, featuring gimmicks such as dancing penguins
and the 7Up mascot "the Cool Spot". In 2006 many soft drinks extended their names in order to advertise
new products, not wanting to lose market shares 7Up followed suit and released its "upside down soft
drink" dnL (7up upside down, see appendix 3). dnL was the opposite of 7Up, which meant it was a cola
and contained caffeine, which caused much confusion with consumers as 7Up was a trusted non
caffeinated soft drink.
As of now, 7Up is marketing its original lemon lime flavour as well as the new antioxidant flavours to
tweens and health conscious soda drinkers even though there is a lot of scepticism as to whether or not a
soft drink can be even remotely healthy.
5. S.W.O.T. Analysis
Strengths:
• 7Up is recognized and available to everyone
• Strong backing of Pepsi brand.
• Available in many different types of packaging to suit different consumer needs.
• 7Up is served in restaurants as a substitute for other citrus flavoured soft drinks.
Weaknesses:
• Soft drinks are seen as unhealthy; health conscious people are changing their diets and switching to
healthier drinks.
• 7Up is similar to other citrus flavoured soft drinks such as Sprite and Mountain Dew.
• Other flavours of 7Up are only available in some countries or regions.
• There is ownership confusion with the 7Up Brand, it is owned by PepsiCo in Canada and Dr.
Pepper Snapple Group in other countries.
Opportunities:
• Teens and young adults are always looking for the "next big thing".
• 7Up has a strong online social media presence.
• PepsiCo has the money and resources to promote 7Up and create new flavours.
Threats:
• Competing brands make similar flavoured soft drinks.
• Healthier flavoured alternatives to soft drinks are on the market and are quickly becoming popular.
Marketing Objectives
1. Reposition 7Up as a brand for teenagers (attract and retain new primary and secondary target markets).
2. Encourage trial purchases of 7Up’s new flavour (honey and ginseng).
3. Redesign 7up packaging and bottle production to become more socially responsible, therefore increasing
our customer relationship marketing (improving on our 100% PET plastic bottles).
4. Market the new flavour as a healthier, unique alternative to other soft drinks.
5. Increase market share by 5% by 2014.
6. Marketing Communications Objectives
The Brand 7Up was once very well known in the soft drink market. Unfortunately throughout the years,
awareness decreased as newer brands took over. They will need to extend the mature stage of the market,
and continue maintaining sales revenue via 7Up Buzz. As a soft drink manufacturer, it seems strange
jumping into the “health drink” category, although through recent studies they have discovered that the
health market is climbing rapidly.
Consequently, as a new product, consumers may be intimidated or afraid to make a trial purchase, and this
may cause a plateau in the profits for the first stage of the campaign. With the distribution of different
medias and a large amount of advertising cost, the message will be perceived and acted upon. Once
consumers become more aware of the product and its benefits compared to other flavoured soft drinks the
company will begin to receive repeat buyers almost immediately, and income will increase due to
rebranding.
In June of 2013, 7up Buzz will be launched and ads will begin on the 1st of June, samples of small sized
bottles of 7Up will be given out in grocery stores. This will ensure that the message will be heard and acted
upon. Outdoor and magazine advertising will continue until January, when the New Years Promotion will
start. By New Years consumers who have not tried the new flavour will be yet again pushed to try it. This
time with more sampling and a coupon, which gives them 50% off the second beverage they purchase. 7Up
already has a large social media/ online presence, which we will use to promote the new healthier flavour
and connect with customers.
Once the consumers see that it is a genuine product and once they have tried it, they will begin to feel an
attachment to it. Customers tend to have relationships with healthier brands as they feel good about buying
them. It is important to build real brand relationships to promote repeat customers especially in the soft
drink market, where there is a lot of brand loyalty (although it is mostly between Pepsi and Coke). With the
use of social media and 50% off coupons we will build more brand loyalty for 7Up.
This product is a win-win situation in a long-term market. If the right awareness is presented frequently
enough and the health market is affected, then 7Up Buzz could be around for a considerable amount of
time. Depending on the attention span of the target audience 7Up Buzz, potentially being a long-term
product, and building brand awareness early, will increase the life cycle of the brand and therefore increase
revenue.
7. Target Market Profile
• Teens and young adults 16 to 25 years of age.
• Students living on campus with access to cafeterias, vending machines, and local grocers.
• Living fast-paced lives where an energy boost is needed due to stress.
• Concerned about health, looking for healthier soda alternatives.
• These individuals takes public transit around “student cities” and spend lots of time online
(especially connected to social media).
• These individuals have grown up drinking pop, and now seek a healthier alternative.
• This target market is aware of the disadvantages of too many energy drinks and seek healthier
options for a boost of energy.
Positioning Strategy
The new flavour of 7Up will attract teenager consumers looking for a healthier alternative to pop.
Teenagers and young adults purchase beverages of their choice, so we need to stand out from other soft
drinks in order to be that choice. Positioning 7Up as the healthier option for the boost of energy is one way
to do so.
7Up does not want to be seen as a sugary, fattening soft drink, and will instead be seen as a healthy
carbonated beverage. Appearing healthy will be easier with the antioxidant flavours already on the market.
These have already helped to establish 7Up as a health conscious brand. Ginseng and honey will stand out
among the other generic soft drink flavours such as grape and orange. It is a different and original flavour
that gives your mind a bit of a boost.
8. Creative Objectives
The new advertisements for 7Up will communicate that the brand now offers a healthier alternative –
honey and ginseng flavour. 7Up Buzz will play up these two key ingredients with print advertisements. The
advertisements will feature the image of the new bottle with the label clearly displayed.
In addition to the new bottle design, PepsiCo will continue to promote the use of the eco-green bottles. The
environmentally friendly bottle works well with the honey and ginseng flavours, driving home the
“healthier alternative” idea.
Creative Strategy
The purpose of promoting the new flavour will be to convince our target audience, teens and young adults,
that 7Up honey and ginseng is a unique and healthier alternative to other soft drinks on the market. The
ginseng also gives you an extra boost, although it is not an energy drink. This will be accomplished by
listing the ingredients and the natural benefits of ginseng on the label. The advertisements will include
lifestyle, positive and factual appeal technique. The mood and tone of the advertising will be upbeat,
natural, humorous, honest, and warm.
Media Budget
$2 Million
Media Objectives
1. We will target teens and young adults ages 16 to 25.
2. We will communicate the message that the new honey and ginseng is a healthier option for health
conscious soft drink lovers, it also gives your mind a boost.
3. A one year campaign to promote the new flavour will start on Jun 1st 2013 to May 30th 2014.
4. These ads will be shown on television, and print ads (magazines and outdoor advertising). The
current 7Up Twitter feed will be updated to promote the new flavours.
5. We will advertise on television stations and magazines that are preferred by our target market.
Samples will be offered in June and January to encourage purchases.
6. We will use the already existing Social Media accounts to build a relationship with consumers as
well as awareness of the new flavour.
9. Media Strategy
Target Market Matching Strategy/Engagement
7Up will be advertised to a teen and young adult demographic, reaching the ages of 16 – 25. One of the
major ways to reach this demographic is online. By keeping the 7Up social media up to date, PepsiCo stays
engaged with this target market.
Social media is not limited to what is posted. The face of each individual social media platform should also
reflect the new honey and ginseng flavour.
For example, Facebook allows for a profile picture and cover photo to be selected for each individual
profile. 7Up should select parts of their print campaign and incorporate them online by switching these two
images to advertise the new Buzz flavour.
Teenagers can also be found in abundance within “student cities”. Part of the campaign will be dedicated to
advertising within these cities, primarily on or around public transit. While students are away at school they
will frequently be taking public transit, as many teenagers do not have their own vehicle.
Advertising in cities with a higher population of students is also a good idea because students are always
looking to stay awake. The ginseng property of the new flavour helps promote the idea of being alert.
Students typically turn to coffee, tea, or even energy drinks to achieve this result, but would now be able to
select 7Up Buzz as an alternative.
Reach, Frequency, Continuity/Timing
Ideally, if 7Up aims to attract teenagers, and is advertising within student cities, they would continue to
advertise throughout the school year.
PepsiCo should also consider adding additional advertising during the months of December and April,
when students are taking exams. Students will be busy studying and will require a boost every now and
then to maintain focus.
This target market will also be feeling stressed due to the higher amount of studying and pressure, and will
be looking for healthier alternatives in order to avoid falling ill. Both the honey and the ginseng
components offer healthier alternatives than many of the soft drinks currently available, and will give 7Up
the upper-hand during exam time.
10. Media Execution
Expenditure by Type of Medium
Medium $ Expenditure % Of Total
Outdoor advertisements 418,300 21%
Magazine advertisements 773,100 38%
Television advertising 291,200 15%
Sales Promotion incentives 517,400 26%
Total: $2,000,000 100%
Expenditure by Month
Month $ Expenditure % Of Total
January 349,242 17%
February 245,276 12%
March 31,175 2%
April 74,775 4%
May 2,100 0.1%
June 534,266 27%
July 2,100 0.1%
August 45,700 2%
September 243,766 12%
October 285,400 14%
November 71,300 3.8%
December 114,900 6%
Total: $2,000,000 100%
Expenditure by Market
Market $ Expenditure % Of Total
National Media 1,064,300 53%
Key Markets
Toronto
Vancouver
Montreal
(457,666)
(297,166)
(180,866)
935,698 47%
Total: 100%
11. Expenditure Summary by Medium
Outdoor advertising – 16 week flights
Toronto Street Level, 25 GRPs, 16 week flight
71,300 x 4 = 285,200
Vancouver Street Level, 25 GRPs, 16 week flight
31,175 x 4 = 124,700
Montreal Street Level, 25 GRPs, 16 week flight
2,100 x 4 = 8,400
Total: $418,300
Magazine advertisements
The Magazine – Standard BRC Insert Card 6’ x 4’ Reg-Supplied; 3 insertions (once per month)
214,100 x 3 = 642,300
Sharp Magazine– Standard 1/2Page 4Colour, 3 insertions (once per month)
43,600 x 3 = 130,800
Total: $773,100
Television advertisements
Run of Schedule; Prime time on CTV National & Global National; 15-second spots, 2 spots per week,
8 weeks (June and January)
(16,000 x 2 x 8) x 0.65 =166,400 83,200
(12,000 x 2 x 8) x 0.65 =124,800 62,400
Total: $291,200
In-Store Trial Sampling and Experiential advertisements
Developing Trial Purchase packaging and bottling
In-store booth (weekends only) One Walmart location in central Toronto, Vancouver and Montreal
during January, June and September
172,466 a month
Total: $517,400
Blocking Chart
Activity Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec
Outdoor
Toronto
Vancouver
Montreal
Magazines
The Magazine
Sharp Magazine
Television
CTV National
Global National
Sales Promotion
Toronto
Vancouver
Montreal
