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Spice Advertising - ADV 425

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  • 1. Spice 1 Spice For those who live with purpose and passion
  • 2. Spice 2 Spice Advertising Agency 826 Sumner Avenue Syracuse, NY 13210 Key Contact: Cynthia Njuguna - Managing Director Phone: 757.806.1472 Email: cwnjugun@syr.edu Contact Us
  • 3. Spice 3 Table of Contents Change the Rules. Change the Game. We all remember the sandbox. And those who fought to rule the sandbox. The energy drink industry is much the same – the only rule is the toughest come out on top. It is a competition of who can provide the most extreme image and the highest energy. A handful of ‘big boys’ dominate the market, with Red Bull and Monster alone controlling close to 80% of the market. This leaves little room for competition. We don’t like those rules. Go Girl is built on a commitment to support women and the cause for breast cancer and ovarian cancer awareness. It is refreshing and functional – not bold and intense. So we will not play by those rules. You asked us to help you grow your brand. We will show you how we plan to meet your goals by changing the game. We will play by rules that stay true to Go Girl’s strengths and brand values. Situation Analysis | 4 The Competition | 5 Market Problem | 6 Our Target | 8 Primary Research | 9 Consumer Problem | 11 Problems to Opportunities | 13 Profile: Starbuck Refreshers | 4 Creative Brief | 15 The Plan | 16 First Steps | 19 Media Flowchart | 23 The Budge | 24 5-Year Plan | 25
  • 4. Spice 4 The Situation Despite its enormous success, the energy drink industry as we now know it is still in its infancy. Red Bull kickstarted this high impact, high energy culture, becoming the global leader of extremes by the early 2000s. Energy shots and mixes entered the scene in 2004 and 2011, respectively, with 5-Hour Energy (shots) and Kraft’s MiO Energy (mixes) leading the way. This industry of extremes is not without its challenges, however, as increasing negative press coverage of controversial lawsuits escalates public health and safety concerns. In response, some consumers are turning away from energy drinks for seemingly safer alternatives. Energy shots have been hit particularly hard by consumer concerns, with Mintel predicting their decline by 2016. Conversely, energy mixes have seen a meteoric rise with 434.4% growth between 2011 and 2013. This is largely attributed to the customization they offer, affording consumers greater control over their consumption. The demographic makeup of energy drink consumers has also undergone a shift in recent years. Men are still more likely to consume energy drinks, as only 26% of women report any consumption in the past year; however, women ages 18 to 34, who do consume energy drinks, generally drink an average of 4.38 drinks per month. Similarly, despite their common associations with energy drinks, teens are consuming less energy drinks, while 18% of 18 to 34 year olds are drinking more than they were a year ago. The Market Go Girl & Women’s Energy Drinks The primary difference between men’s and women’s energy drinks is their calorie content and use of appetite suppressant or supposed fat-burners. Most commonly, women’s energy drinks contain extracts from hoodia, green coffee beans, or garcinia cambogia. They also boast significantly lower sugar contents, often containing less than 10 calories - ten times less than Red Bull and Monster’s traditional offerings. Another significant difference is in the drinks’ packaging. Women’s energy drinks tend to be pink, while men’s tend to be darker colors (e.g. black, blue, crimson, emerald green) and offer a much wider variety. Product differentiation has become increasingly difficult; and while Red Bull and Monster have emerged as the overall industry leaders, no brand has been able to successfully capture the women’s energy drink market.
  • 5. Spice 5 The Competition Energy Drink Market Share There are over 200 different brands of energy drinks. However, only six companies have broken 1% market share. Red Bull, the long-time industry leader, created the energy drink category, and spurred its growth by developing the extreme culture that is now synonymous with energy drinks. They sponsor a variety of sporting events (e.g. Formula 1 Racing, soccer, motorsports, biking, snowboarding, etc.), athletes, concerts, and stunts (e.g. 2012 Stratos), positioning the brand as edgy and extreme. This message is maintained through their wide-reaching and consistent branding across their TV channels, magazines, websites, promotional car, and “World of Red Bull” commercials. Monster Energy comes in as a strong second. Similar to Red Bull, the brand sponsors sporting events, but its true success lies in its distribution. Monster Energy’s method of having regional co-packers and distributors as well as maintaining distribution partnerships with Anheuser-Busch and Coca-Cola have made them the market leader in total volume.
  • 6. Spice 6 As we already know, the energy drink industry has recently come under increased scrutiny. Health and safety concerns receive the most attention from the media due in large part to a large number of lawsuits in 2012 and the proposed legislation that followed; however, these are not the only issues plaguing the industry. Misinformation and energy drink brands’ extreme images serve to worsen public perceptions of these beverages. Media criticism of the industry has produced a widespread health scare, leading the public to believe that energy drinks are much worse than they actually are – rumors of unsafe levels of caffeine are just one of the misconceptions promoted by the media. These misconceptions, coupled with the industry’s emphasis on intense energy, creates a stigma around energy drink consumption. While this has not stopped consumers as a whole from using the products – the industry in general has been consistently growing – individual consumption has declined. According to a study by Mintel, an average of 18.5% of energy drink users aged 18-34 surveyed are consuming fewer energy drinks compared to a year ago. In addition, both our surveys and secondary research show that many non-users are unwilling to drink energy drinks because of their perceptions. The Market Problem
  • 7. Spice 7 Both users who consumed fewer drinks and non-users cite the following health-, misinformation-, and image-related reasons: Aside from health concerns, consider this: Since many energy drink companies emphasize intense energy and/or use for extreme tiredness, potential consumers are alienated if they do not relate to the image or feel the need for ‘energy drink type’ energy. Non-users, aged 18-34, cite “I do not feel that I need them” (47%) as one of the biggest reasons why they do not drink energy drinks. This is almost as much as they cite health concerns (50%). Stigma and extreme marketing divide consumers into three categories: (1) those who use energy drinks; (2) those who don’t use energy drinks, but are open to using them; and (3) those who will not. Insight: The important middle category of consumers not currently consuming energy drinks, but are open to doing so are alienated by intense energy marketing.
  • 8. Spice 8 Our Target These mothers are everyday superheroes. They wake up at the crack of dawn, are always on-the-go, and never stop working in one way or another. They find health and wellness for both their body and their children’s very important and put in a conscious effort to choose healthier food and drink options. When buying products, these women also find it important that the brands they buy contribute to giving back to the community and exhibit some kind of social responsibility. Mothers have a strong connection with each other, placing a large amount of trust and value in one another’s opinions, so it is no surprise that the mommy-blogging world holds important value with this audience. “Nearly half of mothers say the most important overall factor when making a purchasing decision is reviews and ratings from other moms” (Bonneau, 2013). • 91% use social media and networking is integrated in their day-to-day lives. • 182 index for using social media 3 or more times a day • The most popular social media platforms among these women is Facebook • These women are big mobile gamers and Facebook gamers – 75% of mothers play games weekly and 1/3 play daily • About 31% of the adult gaming population consists of women • 65% of mothers use smart-phones and mobile devices to play games. However, every superhero has their weakness, and for these moms it is that unavoidable afternoon crash. They love their children more than anything in the world, but sometimes they wish they could take one day off just to sleep the day away. Young Busy Moms
  • 9. Personal Interviews Primary Research Taste-Test Focus Group In-depth interviews were conducted with moms between the ages of 20-34. The women interviewed discussed: Their average day, How they relax, What brands resonate with their lifestyle, Openness to trying new things, Attentiveness to ingredients/health, Social responsibility, Their ideal pick me up, Their opinions on energy drinks, and Their media usage. One of the major themes we found through these interviews was brand loyalty - and they are especially partial to socially responsible brands that use cause marketing. Other themes included social pressures to be the perfect mom and the need to be informed. A blind taste test was conducted with 3 products: Monster Energy, Go Girl Sweetie Grapefruit, and Red Bull Energy. In that order, participants were asked to evaluate the look and smell of each product, as well as what they thought of the taste of each. In the end they compared the three products. Most participants preferred the taste of Go Girl because they found the other two to be too sugary. Overall, they found Go Girl to be more appealing and enjoyable. Two participants commented that the Go Girl tasted like a soda. It was smoother and more flavorful than the other drinks sampled. Another participant when asked to compare the drinks said that she felt Options A and C (Monster and Red Bull) were energy drinks, but B (Go Girl) definitely wasn’t an energy drink. She felt it was much more like a sparkling soda. “It’s hard to find something that works for you so when you find it you stick with it” — 28 year-old Mom of 2-year-old “I like to stick to what I know but you never know what benefit you can get from something new” — 20 year-old Mom of 1 ½-year-old Spice 9
  • 10. Moms come from a multitude of backgrounds but one of the main things that they have in common is the need for more energy and the shared stigma around energy drinks. Emma, 33 & Married – Denver, CO Stay at home mom Two sons, ages 2 and 8, and one daughter, age 5 Goals: • Provide the best for my 3 children and husband. • Make sure everything at home is organized and clean for my family Erin, 26 & Single – San Diego, CA Works as a middle school English teacher Daughter, age 4 Goals: • Provide the best for my daughter. • Keep work life and home life properly balanced. Meet Our Everyday Heroes Pain Points: • I’m on call 24 hour a day, seven days a week, which can be mentally and physically exhausting. • I’m very conscious of what I do because I don’t want to set a bad example for my children. Attitudes & Perceptions: • Energy drinks are unhealthy and aren’t safe. • I’m open to trying new things but I like to learn about products before I try them. Motivations & Barriers: • I want to keep my family healthy so I look for products and activities that are beneficial, not harmful to us. • Some days it’s hard to get through the “afternoon slump” Needs & Wants: • I want a pick me up, or maybe an extra arm, to help me get through all I have to do. • I need products with ingredients that I can trust. Pain Points: • My schedule is really tight and it can be hard make time for everything during the day. Attitudes & Perceptions • I enjoy making purchases from companies that care about causes. • I’m open to drinking energy drinks, but I don’t really see people my age drinking it. Motivations & Barriers: • I want to make a difference in all that I do. • I don’t have time to do everything. Needs & Wants: • I need something to get me through my day without the negative stigma associated with energy drinks. • I want to contribute back to society even in small ways. Spice 10
  • 11. Spice 11 Consumer Problem By the afternoon, these busy young moms are worn out. They use energy drinks as a quick fix to get through the day. While they enjoy the pick-me-up, many moms hide their use of energy drinks. Most moms feel judged by others and even by fellow moms for their parenting and lifestyle decisions. On the other hand, moms also judge other moms. It is no secret that moms are superwomen, but with the pressure to be a superwoman at all times, asking for help is seen as a sign of weakness. Negative perceptions of the energy drink industry worsen the social stigma of being seen with these beverages as a mom. According to an energy drink study conducted by Nielsen, “pressure to do it all as the primary caregiver and increasingly the primary breadwinner” ranks among the top three reasons moms keep their energy drink consumption a secret. Insight: Moms are embarrassed be seen drinking energy drinks. 95% of moms have felt judged or criticized for their parenting decisions 90% of moms judge other moms 1 in 3 moms make parenting decisions specifically to avoid criticism
  • 12. Spice 12 To discover how to reach Busy Young Moms, we sought to understan their specific wants and needs when it comes to energy drinks. While our target consumer’s interest in the energy drink category is growing, millennial women are the most likely consumer group to raise health concerns regarding energy drinks. They want to be able to enjoy the energy boost without having to worry. Busy young moms want to get educated. This goes hand in hand with the embarrassment factor of drinking energy drinks. They ultimately want a product that they can proudly drink out in the open. 79% of women aged 18-34 who consume energy beverages agree that companies should include recommended daily consumption limits on the packaging of their energy drinks What do Busy Young Moms want? 43% of women aged 18+ indicated that the reason that they do not consume energy drinks is that they worry about the safety of the ingredients
  • 13. Spice 13 Problems to Opportunities When researching the Go Girl brand, we realized that Go Girl’s values align with those our busy young moms. Go Girl supports women’s lives by giving them energy to be their best throughout the day and by contributing to the cause for Breast Cancer and Ovarian Cancer awareness. According to the Cause Evolution Study by Cone Communication, cause marketing wins with moms: • 92% want to buy a product supporting a cause, • 93% are likely to switch brands, and • 61% purchased more cause-related products in the past year Similar to Starbucks Refreshers, Go Girl is one of the few brands that steer clear of the intense energy image. Go Girl speaks to the target consumers’ need for functional energy and her passion for philanthropy. Being marketed as an energy drink, however, means Go Girl is still subject to the stigma surrounding the industry. We plan to leverage the opportunity to further differentiate Go Girl in the category and to disassociate it with traditional energy drinks.
  • 14. Spice 14 Starbucks Refreshers are Go Girl’s strongest competition. Starbucks first introduced its Refresher line in May 2012 as a canned beverage with powdered mix and iced made-to-order counterparts. By May 2013, the canned energy drink garnered 1.4% market share of the energy drink industry. As a newcomer, this is quite a feat, given that the only other energy drinks to break the 1% market share barrier are established market dominators: Redbull, Monster, Rockstar, Amp, NOS, and Full Throttle. Starbucks Refreshers have made a unique impact on the energy drink industry. In a category dominated by extreme sports and high energy, this product takes a step back and redefines what it means to be an energy drink. This is one of the biggest factors in the brand’s success. The product practically forms a category of its own within the energy drink industry because it is marketed as a refreshment with a boost, rather than a traditional energy drink. Many consumers do not think of Starbucks Refreshers as an energy drinks; and, as such, Starbucks managed to evade much of the negative perceptions of the energy drink industry. What Refreshers do: Position themselves as a refreshing beverage Associate their energy component with coffee Bridge the gap between energy drink users and non users Profile: Starbucks Refreshers What Refreshers do not do: Philanthropy Educate consumers Set themselves apart from energy drinks at the Point of Purchase
  • 15. Spice 15 Creative What do we want the advertising to do? Increase overall brand awareness and drive more people to consider the product. Target Young moms between the ages of 20 and 34. What do they think? They have low awareness of Go Girl and are embarrassed to be seen drinking energy drinks. What do we want them to think? Go Girl isn’t an energy drink, so I can feel comfortable drinking it in public. What is the single most compelling promise we can make them? Go Girl can fit into and enhance my lifestyle without worry. The Brief
  • 16. Spice 16 We know that the busy young mom likes and uses energy drinks, but she cannot freely drink them. No brand both connects with her and removes the stigma. Go Girl can be that brand that she can proudly drink out in the open. Our strategies will show how we plan to accomplish this. Our campaign objectives are to generate awareness—so she can get to know Go Girl—and drive consideration—so she can realize that it is the right brand for her. We plan to focus on busy young moms in markets where Go Girl is sold. Marketing Objectives Marketing Strategy Engage Consideration Educate Awareness Reposition We plan to accomplish Go Girl’s goals by positioning ourselves as a lifestyle brand. This means that we will meet the busy young mom at different aspects of her life. By reaching her where she is, providing her with functional advertising and engaging with her daily routine, our plan works to satisfy the target consumers’ wants and needs. And in grounding our strategy in behavioral interest-based targeting, we will prove to her that we are both appealing and useful. Busy young mothers are likely to switch and/or begin using Go Girl if they feel that they can proudly drink it out in the open. The Plan
  • 17. Spice 17 Increase brand awareness by 50% by achieving a reach of 80% and a frequency of 6. Media Objectives Media Strategy We will use seven Spotlight Markets to generate awareness, educate consumers, and engage with them in their everyday lives. The campaign starts off strong during Breast Cancer Awareness Month, and will pulse throughout the year around important holidays, including Thanksgiving, Valentine’s Day, and Mother’s Day. A combination of point-of-purchase displays, local events, and sponsorships will raise awareness of the brand and drive consumers to Go Girl’s digital content. There they will find more information about Go Girl’s core values of supporting women and raising breast cancer and ovarian cancer awareness. 365 Days of Go Girl will structure Go Girl’s online presence, focusing on sharing information about energy beverages, lifestyle and mothering tips, and events where Busy Young Moms to come together.
  • 18. Spotlight Regions The campaign will focus on Seven Spotlight Regions to grow awareness in concentrated urban markets, before expanding further east. These Spotlight Regions will function as test markets for Go Girl’s Spiced-up image; and after the one-year test period, each market will be evaluated to determine the success of the campaign and the next steps to grow the Go Girl brand both within those specific regions and nationally. The Seven Spotlight Regions: 1. San Diego, CA 2. Los Angeles, CA 3. San Francisco/Bay Area, CA 4. Portland, OR 5. Seattle, WA 6. Phoenix/Tucson, AZ 7. Denver, CO Spice 18
  • 19. First Steps October Breast Cancer Awareness Month e-Cards Go Mom Stroll-a-thon Awareness Events Point-of- Purchase AdWords Go Girl Blogs Spa Giveaway Sponsored Mom Blogs 365 Days of Go Girl This is the overarching strategy for Go Girl’s social media and blog content. It will incorporate Facebook, Twitter, Instagram, and Go Girl’s own blogs. Ensures daily content that speaks to brand news, what’s interesting to Go Girl consumers, connections to the Mom blog, information about events, and other Go Girl information. One-time purchase and installation of: • 5000 decals to be placed on refrigerators where Go Girl is sold, • 375 checkout counter mini-fridges: 5 per store in 10 Wal-Marts each of the 7 Spotlight Markets Spice 19
  • 20. Spice 20 Digital Media Facebook Sponsored Stories will be used year-round to drive consumers to Go Girl’s digital content, including the homepage, blogs, and other social media. e-Cards will be created for Breast Cancer Awareness Month, Thanksgiving, the holiday season (Christmas, Hannukah, New Year’s, etc.), Valentine’s Day, and Mother’s Day. These will be shared through Facebook and linked to other social media. Google AdWords to be purchased: “Go Girl,” “energy beverage,” “Go Girl energy,” “gogirl,” “flavored energy,” and more. This will help increase traffic to the Go Girl website and blogs. The digital media spend is critical to the campaign’s success, as it will address each aspect of our strategy. Each channel of Go Girl’s digital media will help raise awareness and create opportunities for engagement. Sponsored Buzzfeed articles and sponsored posts on top mom blogs will help educate consumers about Go Girl and its mission. And the combination of e-cards, Buzzfeed posts, mom blog posts, and Facebook sponsored stories will offering engaging content bringing consumers to Go Girls’ own website and blogs. Sponsored Buzzfeed Articles will be published around holidays and seasonal events, for a total of 10 posts: • Two Posts in October and May • One Post in November, December, February, July, and August
  • 21. Spice 21 Mobile ads in Zynga games (e.g. Farmville 2) will be purchased year-round, as these games are popular with moms, especially Busy Young Moms, who just need a quick break from their hectic days. Sponsored Posts on Top Mom Blogs will reach the target through a trusted source and a trusted medium. Twenty blog posts will be sponsored over the entire year, with five posts per quarter. Spa Giveaways will be awarded as prizes for moms competing in the SuperMom Contest, hosted on Go Girl’s SuperMom blog. Moms will post their day-to-day activities or a typical week’s schedule, sharing their stories with other moms, and getting tips and feedback on how to make life easier. Five will be given out during Breast Cancer Awareness Month, Thanksgiving, and the winter holidays, and Mother’s Day; and another three will be given out on Valentine’s Day.
  • 22. Website & Package Update The updated website will feature a sleek design, highlighting Go Girl’s values of supporting and empowering women as well as the extensive cause market Go Girl conducts in support of breast cancer and ovarian cancer awarenes. It will also highlight Go Girl’s blogs: Passion Meets Fashion and the SuperMom Blog. Spice 22
  • 23. Media Flowchart Online Advertising Facebook Sponsored Stories BuzzFeed Sponsored Articles Google AdWords Sponsored Mom Blog Content Events Go Mom (monthly meeting) Spa package giveaway Breast & ovarian cancer awareness/local events Social Media/Blogging 365 days of Go Girl (social media and blog) Go Girl Fashion Blog (Go Girl website blog) Go Girl Super Moms (Go Girl website blog) e-Cards (Facebook) Mobile Gaming Zynga mobile ads One Time Updates/Installations Point of purchase (refrigerators and decals) Website and packaging updates Oct. Nov. Dec. Jan. Feb. Mar. Apr. May. June. July. Aug. Sept. 2 2 5/quarter (depends on region) 5 5 5 3 5 5/quarter 5/quarter 5/quarter (once a month) Spice 23
  • 24. Budget Success will be measured through online metrics, including Facebook Insight, Google Analytics, DoubleClick by Google, and Twitter Analytics, as well as event participation over time. Metrics Spice 24
  • 25. Most Go Girl Reenergizer marketing strategy in the first year will be applied to the next 5 years as well. But since the first year plan is “test- period”, future markets will be varied. Depending on the result of the “test-period”, we will decide whether we will expand our Spotlight Regions to other states or will narrow down to fewer cities within the selected Spotlight Regions. As the PR part of it, Go Girl Reenergizer will keep supporting “Stroll-a-thon” events in the next five year. Starting off from the second year, however, these events will not be held in all 7 selected cities, but in only cities where will show the better result. In every event, product sampling will be the main task. Within the next five years, Go Girl Reenergizer are going to redesign on its package as well. But this time, the packaging will not be determined by Go Girl, it will ask target market’s opinions. Among several candidates of packaging, the largest number of votes will be selected as the next generation of Go Girl Reenergizer can design. And after analyzing mobile gaming application and if it shows positive result, then Go Girl will actually gamify mom’s life. This so-called “Go Girl Game” will utilize features such as location-based, and describe the busy mom’s daily life. This will create word of mouth among the target segment and eventually bring the target’s awareness. Appendix -AOL, Insights Now, & BBDO (2012). Seven Shades of Mobile. -Baby Center (2013). Social Mom Report. -Bonneau, A. Moms trust each other more than anyone else. (2013, May 5). -CarStickers.com. Custom multi-color cut-out sticker. -Cetana Salon Spa. Services. -Clemency, K. (2013). Moms are consuming more energy drinks than you might think. Quartz. -Cone Communication (2010). Cone Cause Evolution Study. -DeBarr, K.A. & Pettit, M.L. (2011). Perceived stress, energy drink consumption, and academic performance among college students. US National Library of Medicine. -DeBroff, S. (2012, February 17). Moms and the Rise of Casual Gaming. Mom Central Consulting. -Dube, R. (2011, August 11). The Mom-Judging Olympics: A competition nobody meant to enter. Today.com. -DeCesare, M. (2013). Moms and Media 2013. Edison Research. -Egan, B. (2014, April 20). Email interview. -Frum, L. Nearly half of all video-gamers are women. (2013, August 11). -Go Girl Energy Drink. In Facebook [Likes]. (2014, Apr 19). -Gordon, M. E.G. (2013). How to Reach America’s Mobile Moms. Flurry. -Gunnars, K. (2013). Does Garcinia Cambogia Extract Actually Work? An Objective Look. Authority Nutrition. -Heckman, M.A., Sherry, K. and De Mejia, E. G. (2010), Energy Drinks: An Assessment of Their Market Size, Consumer Demographics, Ingredient Profile, Functionality, and Regulations in the United States. Comprehensive Reviews in Food Science and Food Safety. -Lardinois, F. How moms use their iPhones. (2009, October 25). -Latif, R. (2012). Consumer Perception of Energy Drinks Plummets. Bevnet. -M2Moms: The Marketing to Moms Conference (n.d.). Fast Facts. -Malinauskas, B. A survey of energy drink consumption patterns among college students (2007, Oct 31). -Marshall, J. What online ads really cost. (2013, February 22). -McDonald, E. 74% of us mothers play video games. (2013, August 28). -McLaughlin, J. How much should you pay your company bloggers? (2012, September 5). -Murphy, E. (2012, February 9). 5-Hour Energy: A Success Equal Parts Caffeine, Chemistry and Meditation. DailyFinance.com. Retrieved April 23, 2014. -Nanji, A. How much bloggers charge to publish sponsored content. (2013, July 2). -Nielsen (2011). Getting to Know (and Like) the Social Mom. Nielsen. -O’Donnell, F. (2013). Marketing to Moms - US. Mintel. -Poland A. Best Paid and Free iPhone Apps for Moms. (2013, July 9). Similac (2013). The National Motherhood Decisions Survey. FleishmanHillard. -Simmons OneView (Fall, 2011). -Thomas, C. (2014). How Much Does It Cost to Develop An App?. Blue Cloud Solutions. -United States Security and Exchange Commission. Hansen natural corporation Form 10-K. (2007 December 31). -Vivid Greetings. E-Card Price List. -Wiggin, A. (2013). Put Down That Energy Drink!. Women’s Health. -Zeratsky, K. (2012). Nutrition and Healthy Eating. The Mayo Clinic.
  • 26. Spice&