Welch\’s Grape Juice IMC Plan

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Welch\’s Grape Juice IMC Plan

  1. 1. Running head: WELCH’S 100% GRAPE JUICE IMC PLAN 1 Welch’s 100% Grape Juice – IMC Plan Bradford Pretorius – brad.pret@gmail.com Roosevelt University IMC 446 – Brand Planning and Message Strategy
  2. 2. Running head: WELCH’S 100% GRAPE JUICE IMC PLAN 2 Table of ContentsExecutive Summary 3Company History 4Sales and Position 4Current Primary Differentiators 5Current Brand Values / Image / Personality 5Welch’s 100% Grape juice 5Past and Present Communications 7Retail and Distribution 8Pricing 8Competition and Industry Trend 9Consumer Insights 12Marketing Strategy 14Communication Tactics 17Conclusion 20References 21Appendices A - L
  3. 3. Running head: WELCH’S 100% GRAPE JUICE IMC PLAN 3Executive SummaryWelch’s, a strong competitor in the US food and beverage industry, has been most successfulwith core products that offer a balance of value, wellness, quality and convenience. Welch’s hasincreased its product lines over the years to fit changing consumer demands, perceptions of healthand continues to be a corporation that offers significant value for both shareholders andconsumers. While Welch’s maintains a strong position in the consumer goods market,opportunities to further improve as a corporation exist, by utilizing the past success of their 100%Grape Juice to develop new brand strategies that offer significant value to reach new consumersand pave the way for future growth.
  4. 4. Running head: WELCH’S 100% GRAPE JUICE IMC PLAN 4COMPANY HISTORYWelch’s has a long and fruitful history dating back to 1869 (see Appendix D). Welch’s has been afamiliar household brand for over a century and has a very strong heritage that resonates withU.S. consumers who grew up with the brand. They currently have 400 products in their portfolioand are the world’s largest producer of products made from Concord and Niagra grapes.(Welchs.com, History, 2011). The National Grape Cooperative Association, Inc. acquired Welchs in 1952. A grower-owned agricultural cooperative, National Grape is comprised of 1,150 grape growers with farmsthroughout Michigan, New York, Ohio, Pennsylvania, Washington and Ontario, Canada(Welchs.com, History, 2011). This is was a significant development as it forged strongrelationships between the suppliers and manufacturers and gave them a sense of scale that putthem on the radar screen of giant distributers such as Wal-Mart. Welch’s is a family-farmer owned company (Welchs.com, Product Info, 2011), which issignificant as it establishes that Welch’s is not a huge multi-national like some of its competitors,namely PepsiCo and Coca-Cola. Today’s consumers are increasingly looking to support moreniche brands that promise quality over quantity.SALES AND POSITIONWelch’s volume in their core, domestic packed product businesses improved slightly in 2010with 4% growth (Welchs Annual Report, 2010). Their largest volume and profit contributor,100% Grape Juice, led the way, growing 7% and gaining market share despite an aggressive,competitive environment (Welchs Annual Report, 2010). Overall volume was down 1% in 2010 due to recessionary pressures in internationalmarkets and market dynamics that led to declines in non-core businesses, like frozen juice andconcentrates (Welchs Annual Report, 2010). In terms of overall sales of refrigerated and non-refrigerated juices, Welch’s 100% GrapeJuice placed 12th in the U.S. in 2009 with US$ 138,855,000 in sales which was an increase of0.6% from the previous year (see Appendix G). Their overall organizational net income rose by$10 million in 2010 (Welchs Annual Report, 2010).
  5. 5. Running head: WELCH’S 100% GRAPE JUICE IMC PLAN 5CURRENT PRIMARY DIFFERENTIATORS HeritageWelch’s 100% Grape juice has a long history in the USA, it has been a household brand for overa century, and generations upon generations have become familiar with the brand. First in categoryWelch’s 100% Grape Juice was the first and still is the unrivalled champion of the grape juicecategory. LeadershipThere is no other grape juice brand on the market that can directly compete with Welch’s 100%Grape Juice for market share, there are a number of other grape juice brands including, EliteNatural and Kedem, as well as many private label grape juices, but none with the history that hasmade Welch’s an American staple. Quality/reputationThe ‘familiar-farmer owned’ reputation that Welch’s has promoted for generations, resonateswell with consumers who prefer smaller local niche brands. Other juices such as Tropicana andSimply Orange are linked to huge multi-nationals like PepsiCo and Coca-Cola. The fact that theyare family-farmer owned instills a feeling of personalized non-mass production, resulting in aproduct that is perceived to be produced with the utmost care and attention.CURRENT BRAND VALUES / IMAGE / PERSONALITY Brand ValuesPremium. Family-oriented. Wholesome. Healthy. Unique flavor. Heritage. Local. Brand ImageHigh-quality. Heritage. Wholesome goodness. Original. Consistent. Trustworthy. Local. Brand PersonalityHealth conscious. Reliable. Caring . Innovative. Bold. Family-oriented. Friendly.WELCH’S 100% GRAPE JUICEThe name Welch’s 100% Grape Juice represents what the brand stands for, namely, ‘100% GrapeJuice’. The Welch’s name appears prominently on all of the company’s product packaging,merchandising and all forms of communication. The purple grape juice is made from the Concord grape and it has been found that dark-skinned blue and purple fruits, like the Concord grape, tend to have more natural antioxidantpower than their lighter-skinned counterparts, and provide plant nutrients not found in many othercolors of fruits and vegetables (Welchs.com, Product Info, 2011).
  6. 6. Running head: WELCH’S 100% GRAPE JUICE IMC PLAN 6 The production of the juice features a special vine-to-juice process, which uses the wholegrape; skin, seeds and pulp so consumers get the benefits of the entire fruit. Other than the antioxidant power of the Concord Grape, the juice also contains anabundance of natural sugars and carbohydrates that provide a natural insulin spike which resultsin a burst of energy after consumption. It has also been found that grapes can be used in thetreatment or prevention of the following diseases and ailments: Asthma, heart disease, migraines,constipation, indigestion, fatigue, kidney disorders, breast cancer, Alzheimer’s, maculardegeneration, cataracts, high blood cholesterol as well as having anti-cancer properties (HealthBenefits of Grapes , 2011). Grapes also feature prominently in weight loss diets such as Weight Watchers as they area low calorie snack with so many additional health benefits (Olson, 2001). Ingredients and Nutrition • 100% dark-purple Concord grape which gives the juice a rich unique purple color as well as an unmistakable sweet taste • 120% daily value of the antioxidant vitamin C per 8oz serving • 10% daily value of calcium for strong bones per 8oz serving • No added sugar, color or flavor • Meets the American Heart Association (AHA) standard for a heart-healthy beverage and carries the AHA check mark. • One serving (1/2 cup) of fruit in every 4oz glass (Welchs.com, Product Info, 2011) PackagingThe current packing includes images of a vineyard which represent a good, safe source of foodand the idea of harvest conjures up quality family time associations. To enhance the concept of locally grown, phrases like ‘Family-Farmer Owned’ and‘Made from Welch’s Own Concord Grapes’ have been incorporated along with ‘Heart Healthy’and ‘Authenticity Guaranteed’ logos.Health messages to better educate the consumer about the power of the Concord Grape, inparticular their antioxidant power, have been made prominent. The visuals of the grapes on the packaging have been made as realistic as possible,blemishes, stems and all, to further reinforce the natural qualities of the juice. There are a variety of bottle sizes to cater for larger family sizes, smaller families andindividuals on the go. The sizes range from the large 96 oz bottle to a 6 pack of 10 oz bottles.(Welchs.com, Product Info, 2011).
  7. 7. Running head: WELCH’S 100% GRAPE JUICE IMC PLAN 7PAST AND PRESENT COMMUNICATIONS AdvertisingWelch’s has made use of print advertising dating back to 1910 (Advertisingarchives.co.uk, 2011),these early ads showed children alone, in groups and with their mothers enjoying Welch’sproducts (see Appendix F). More recent communications, 1994 to present, include televisioncommercials with children enjoying the product and highlighting its health benefits. Welch’s communications were also trend setting and groundbreaking as they were one ofthe first food companies to take advantage of radio and television to market products.Over the decades their advertising has evolved from promoting the products unique taste toinforming about the many benefits of drinking grape juice made from Concord Grapes. Thehealth benefits communicated in recent campaigns relate directly to the antioxidant characteristicof the juice, which resonates well with today’s health conscious consumer. Recently, extremely effective ads featuring Alton Brown (Yumsugar.com, 2008), the faceof Welch’s, highlighting the special vine-to-juice process. The strong print and TV advertising,online outreach, and other innovative efforts have helped connect with consumers in ameaningful way. Another recent print ad included a novel peel-and-taste feature, whereby thereader could peel off a sticker to taste the product (Moses, 2008). Past and Present PromotionsPast and present communications have included targeted marketing tactics including: • Focused trade promotions which result in key display activity (Welchsinternational.com, 2010). • Strategic sampling and demo programs to encourage consumers to try new products (Welchsinternational.com, 2010). • Incentive programs to motivate local sales and merchandising professionals (Welchsinternational.com, 2010). • Vending machines for instant cold refreshment with careful placement including remote locations (Welchsinternational.com, 2010). • Event promotions focused on diverse consumer groups (Welchsinternational.com, 2010). • Welch’s Harvest Grants: 100 elementary schools nationwide received gardening grants to grow their own fruits and vegetables (Welchs.com, Promotions, 2011). • In-store merchandising featuring Alton Brown (Yumsugar.com, 2008).
  8. 8. Running head: WELCH’S 100% GRAPE JUICE IMC PLAN 8 Web PresenceWelch’s has a limited online presence (see Appendix H), making use of the standard socialnetworks such as Facebook and Twitter to promote grape juice, community activities and todistribute coupons. The Welch’s homepage contains information on their products, theirnutritional benefits and the company history. There is currently no online portal to facilitateproduct purchase, and there is definitely an opportunity for bulk online sales, however, firstly theconsumer needs to be given a reason to buy in bulk.RETAIL AND DISTRIBUTIONWelch’s 100% Grape Juice can be found in both the refrigerated and non-refrigerated sections ofall leading supermarkets, drug stores and mass merchandise outlets in the USA. Its shelfplacement reflects their 12th position rating (Juice boosts benefits, 2009), which is not ideal asthe product appears on the lower and higher shelves, out of the customers eye level. Welch’s100% Grape juice is found in institutions such as schools, hospitals and military installations, inover 50 countries around the world (Welchs Annual Report, 2010). In 2006 Welch’s selected Weber Distribution, a leading provider of contract warehousingand transportation logistics, to serve as its West Coast distribution center (Welchs.com,Company News, 2006). This was a significant partnership as it ensures more reliable distribution of the juice toretailers as well as guaranteeing that the raw product reaches the production facilities on time,limiting wastage caused by delays combined with a small product freshness window.PRICINGCosts of production are rising, and Welch’s competitors, including Tropicana Orange, SimplyOrange, Mott’s Apple and Private Label juices can often afford to sell to retailers at a lower cost.There are several very large competitors with new products and innovative marketing programs.They are not offering what Welch’s is in terms of overall quality, but have a lower productionoverhead and can afford to sell at a lower price (Amanor-Boadu, Boland, Barton, Anderson, &Henehan, 2002). The pricing of Welch’s 100% Grape Juice varies dependent on the region and retail outletit is sold in. The various sizes are also stocked by retailers relative to their size and available shelfspace, with the larger sizes being carried by larger merchandise outlets and supermarkets, and thesmaller sizes stocked in smaller outlets and drug stores.
  9. 9. Running head: WELCH’S 100% GRAPE JUICE IMC PLAN 9 The following prices were obtained from visiting 5 retail outlets, Dominic’s, WholeFoods, Jewel Osco, CVS Pharmacy and 7 Eleven. The price of three sizes, varying from largest tosmallest where averaged for Welch’s and their leading competitors across the 5 outlets. • Welch’s 100% Grape juice: $0.10 / oz • Tropicana Orange: $0.07 / oz • Simply Orange: $0.07 / oz • Motts Apple: $ 0.06 / oz • Private Label $0.05 ozCOMPETITION AND INDUSTRY TRENDSRecent Mintel survey results show that about 90% of consumers look for 100% juice whenpurchasing fruit juice products. Vitamin or nutrient enhancement is important to 65% ofconsumers, while about 50% and 25% of the consumers look for low-sugar and low-carb fruitjuice products respectively. Organic fruit juice products are important to 20% of the consumers.(MSU Product Center, 2005). Welch’s 100% Grape Juice competes for market share in both the refrigerated and non-refrigerated fruit juice categories. Over the last few years, U.S. consumers have made a concertedeffort to improve their health. In their quest for enhanced quality of life, they are consuminggreater quantities of vitamins, minerals, and other nutrients than ever before. Thus, a newcategory of classification in the beverage industry called “functional beverages” has arisen (Thor& Savitry, 2009). “A functional beverage can be defined as a drink product that is non-alcoholic, ready to drink and includes in its formulation non-traditional ingredients. This includes herbs, vitamins, minerals, amino acids or additional raw fruit or vegetable ingredients, so as to provide specific health benefits that go beyond general nutrition” (wikipedia.org, 2011). In the U.S. beverage market, fruit juice has increasingly been promoted on a healthplatform. Its consumption is encouraged as an important part of any diet leading towards goodhealth. While this concept is not new, it is effective as a marketing tool. It appeals to a growingnumber of American consumers aspiring to obtain and maintain good health. Marketers havetaken note of this growing health trend and exploited the theme of “a bottle a day keeps thedoctor away” very effectively (Thor & Savitry, 2009). Increased availability and convenience of these fruit juices are driving sales and betterdistribution is reaching a wider audience. At the consumer end, there is also a significant change.Active and health oriented people are no longer the sole consumer of fruit juices. Nowadays, theconsumer base for fruit juices is much broader. Fruit juices now attract a wide range of
  10. 10. Running head: WELCH’S 100% GRAPE JUICE IMC PLAN 10consumers ranging from those having specific health needs to those simply looking for healthyrefreshments (Thor & Savitry, 2009). There are a variety of customers for fruit juice and their needs are different from segmentto segment. The segments include kids, adults, health conscious (including Dieters) and Youth(see Appendix J). Taste, nutrition, and price are still the main selling points in the market.However, consumers have started to look beyond these three points. They are increasinglylooking for “total value” (Thor & Savitry, 2009). They see these products serving other needs thatfit a simple and logical proposition, such as ease of preparation, high level of availability,ergonomic packaging, portability, and other factors that make up an individuals perception ofvalue. As a growing category, fruit juices must fight the battle to win the shelf space. Hundredsof new beverages are introduced every year. Even though more supermarkets are being built inlarger sizes, their shelf space is still unable to accommodate all of these new beverages in themarket. Naturally, supermarkets are only willing to allocate their shelf space to products that willgive them a higher profit. “Facing flat growth and market erosion from private label and value brands, majorbeverage manufacturers such as PepsiCo and Coca-Cola are branching into the market by rollingout their own line of fruit juices, or acquiring other companies” (Thor & Savitry, 2009).Such a strategy has enabled them to penetrate the market without going through the traditionalroute of product development, research, and market building. Among the market drivers are theincreasing cost of healthcare, an aging population, health benefits of certain ingredients andimprovements in technology. The fruit juices market is highly competitive and fragmented with scores of medium andlarge player competing fiercely for a larger share of the pie. Orange juice dominates the marketwith a staggering 49.6% share; grape juice currently lags far behind with a 2.9% share (seeAppendix I).The leading three producers in the market are: 1. Coca-Cola. The Coca-Cola Company which owns four of the top five soft drink brands and stands #2 with nearly 400 brand ranges running in 200 countries. It had revenue of around US$30.8 billion in the year 2009 (seekingalpha.com, 2011). The estimated growth rate for Coca Cola was 12.1% in the year 2010 (seekingalpha.com, 2011). Their famous Minute Maid Orange Juices and Simply Orange Juices of Coca- Cola have tremendous success all over the world. Coca Cola has run several types of advertisements and promotional programs that still outsell Pepsi in some particular brands. The Pepsi-Cola war had shown dramatic changes in PepsiCo’s Market share
  11. 11. Running head: WELCH’S 100% GRAPE JUICE IMC PLAN 11 in the last few years. In terms of U.S. fruit juice market share, Coca-Cola recently overtook PepsiCo and currently enjoys a 23.3% market share. 2. PepsiCo. PepsiCo International is the worldwide leader in beverages in terms of overall revenue estimated at US$ 43.3 billion in 2009 (seekingalpha.com, 2011). Its products are well known in the world ranging from Frito-Lay, Gatorade to Quaker Brands and best range of Tropicana juices and Izze Sparkling Juices. PepsiCo’s Tropicana Pure Premium Orange juice is the number one selling fruit juice in the world, however, their current market share in the U.S. juice industry is 21.8%, slightly lower than Coca-Cola 3. Cadbury Schweppes. Another leading competitor, Cadbury, previously known as Cadbury Schweppes and Dr Pepper Snapple Group Inc. in the USA is the number 3 non-alcoholic beverage producer in the world after Coca-Cola and PepsiCo (hoovers.com, 2006). Cadbury Schweppes was acquired by Kraft Foods in 2010 making it the industrys largest confectionary company globally (reuters.com, 2010). Its revenue in 2005 was US$12.04 Billion (hoovers.com, 2006). Schweppes’s Mott’s fruit juices, Orangina and Snapple are enjoying tremendous success in the U.S. market. Private label manufacturers also hold a large share of the market, reaching a historic highof 23.7% market share in US supermarkets in 2009 (just-drinks.com, 2010). Other key marketplayers include Del Monte Foods, Nestle and Ocean Spray (Global Industry Analysts newsrelease , 2011). In order for Welch’s 100% Grape Juice to secure a higher market share in this fiercelycompetitive US$8.3 billion industry (Juice boosts benefits, 2009), they will need to market theirflagship brand in a creative way while addressing consumer demands. Positioning will need tobecome more targeted, shifting from the mass market to a more customized approach in whichparticular audiences are identified by lifestyle and other factors. So where can Welch’s make its mark?Past and present communications of the leading and smaller juice brands, including Welch’sjuices, focus on the health benefits, claiming market leadership, highlighting natural ingredientsand promoting taste. There is much confusion amongst consumers as variety increases withmajority of competitors having similar claims. In terms of price, Welch’s cannot compete with the category leading brands, includingPepsiCo and Coca-Cola and private label as these big companies have lower productionoverheads resulting in a less expensive product.
  12. 12. Running head: WELCH’S 100% GRAPE JUICE IMC PLAN 12 Focusing communications solely on taste is also a very risky as taste is very subjective,most juices are sweet and this is not enough of a differentiator in todays saturated market. Welch’s 100% Grape Juice has had great success in the market claiming twice as muchantioxidants as orange juice, however, the recent popularity of pomegranate juices, includingPom Wonderful (see Appendix E) negates this claim, as their juice contains more. Claiming to be made in the USA has also become a point of parity in today’s market asmany others producers can claim this. Florida’s Natural juices are currently focusing theircommunications on this fact. While Welch’s does have a long and fruitful heritage in the USA,one has to ask themselves, does today’s consumer care as much about heritage as they use to. In terms of overall health benefits, grape juice does offer a lot, however, there are aplethora of other juices that can make the similar claims, including producers of pomegranate andthe large variety of berry based juices. In terms of overall market leadership, while Welch’s can claim that they dominate thegrape juice sector, however, orange rules the overall juice market.CONSUMER INSIGHTSThese days’ consumers are considered king of the market. Their need varies from time to timedue to change in technology, fashion, tastes, behaviour and lifestyle. Customers demand 100 %calorie free juices now from which they can derive potential health benefits. Some recent insightsthat could help Welch’s Grape Juice increase market share by resonating with the consumers are: • Today’s consumers are making a concerted effort to improve health; they are consuming greater quantities of vitamins, minerals and other nutrients. They are generally consuming a fruit juice as part of a healthy diet. There however is much confusion when choosing a fruit juice as variety increases with majority of competitors having similar claims. • They are exercising more and for longer than ever before which has led to a major growth in sports drinks and energy drinks as they become more physically active. • Most consumers of energy drinks are generally unfamiliar or unaware of the negatives of consuming sports and energy drinks. There appears to be great opportunity in the market to claim a beverage as a being cross-over beverage between healthy and energy boosting (see Appendix K).
  13. 13. Running head: WELCH’S 100% GRAPE JUICE IMC PLAN 13 The Truth about Energy and Sports DrinksMany consumers drink energy drinks thinking they’re harmless pick-me ups, however the drinksare high in sugar and caffeine, which comes from several sources. Many people consume thesedrinks on a regular basis, not realizing how much caffeine and calories they contain. Youngpeople are attracted to the drink names like Rock Star, Pimp, Red Bull, Venom, Kronik Grind andNo Fear. The names are fun but misleading. Most people have trouble managing a healthy weight if they drink high-calorie beveragesregularly. Many energy drinks contain multiple stimulants that are not identified. In addition tobeing caffeine laden, they are diuretics and can cause dehydration. Caffeine may be in an herbal form known as guarana that has raised concerns amonghealth care providers and is unregulated and of unknown origin in the U.S. (Truth About EnergyDrinks, 2010). What people perceive as alternate forms of energy is normally cleverly disguisedcaffeine. The smaller bodies and central nervous systems of children are especially affected byhigh-caffeine beverages (Truth About Energy Drinks, 2010). Caffeine can cause jitters, hamperconcentration and blunt performance. The drinks may appear to be healthy because some labels say they contain suchingredients as ginseng, vitamin B6, B12 and green tea and young people are choosing them as ashort cut to improving sports performance. (Truth About Energy Drinks, 2010). People with medical conditions such as heart disease or high blood pressure will see anincrease in their heart rate and blood pressure from energy drinks and should avoid them. A betteralternative for those who are involved in more than one hour of intensive activity is a sports drinklike Gatorade or PowerAde. It replaces electrolytes, helps the body absorb fluids and preventsgastrointestinal distress (Sports Drinks vs Water, 2011). Sports drinks are often used by athletes and non-professional exercise enthusiasts before,during and after competition to replenish their bodies of the nutrients that they sweat out. Theyare basically designed to rehydrate and replace electrolytes (sodium levels), essential sugars andother nutrients that you need for muscle repair in order to perform again at top gear (SportsDrinks vs Water, 2011). Sports drinks are also able to keep your energy levels topped up. Theyare usually filled with carbohydrates and sugars, which are essential for energy production. Much of the confusion surrounding sports drinks is attributable to mass-marketingcampaigns. This means that the average person believes that they should be drinking them.However, if you’re a person who’s trying to lose weight, sports drinks might actually behindering your weight-loss efforts because they contain a lot of carbohydrates and are designed toreplenish an elite athlete who burns a huge amount of calories during exercise.
  14. 14. Running head: WELCH’S 100% GRAPE JUICE IMC PLAN 14The average person is unlikely to burn more than 500 calories during a 1-hour workout (SportsDrinks vs Water, 2011). This means that when one consumes a sports drink and returns to theirdesk job, their body stores excess calories and turns them into fat. If you want to lose weight, thekey is to burn more calories than you consume. This is where Welch’s 100% Grape Juice comesin.MARKETING STRATEGY ObjectiveNot many consumers are aware of the complete benefits of drinking grape juice. Welch’s needsto highlight the additional benefits that grape juice can provide consumers through its marketingactivities. These new sources of equity (see Appendix L) will be used to develop acommunication strategy that increases awareness resulting in increased market share andultimately organizational profits. Target MarketPrimaryADULTS: 21 – 30. Working professionals becoming more concerned about their health. • Frequent the gym • Chose rich nutrition over taste • Don’t care about price • Brand image is important • Influenced by scientific research • Concerned with how they lookSecondaryElderly: 50+. Senior citizens looking to improve their health • Looking for solutions to health problems • Heart, cancer, hardening of the arteries and related diseases • Influenced by scientific research • Want to live longer • Don’t care about price
  15. 15. Running head: WELCH’S 100% GRAPE JUICE IMC PLAN 15 CTB Statement In summary, the following points, based on research have led to the proposed strategic CTBstatement and creative campaign executions aimed at revitalising the Welch’s 100% Grape Juicebrand: • Delicious and energetic juice which boosts energy. • It is a healthy energetic. • A daily glass of 8 ounces can provide surprising benefits as it contains antioxidants, which help in preventing the cells and tissue damage that leads to any disease. • Energy and Sports drinks are not healthy; they contain artificial ingredients and are extremely high in calories.Convince anyone who takes exercise seriouslyThat Welch’s 100% Grape Juice gives you the natural energy boost you need to power throughyour workoutBecause it contains an abundance of all-natural sugars and carbohydrates. Strategy Rationale • The majority of fruit juices have similar general health claims however none are targeting exercise fanatics directly. • There is the potential to turn a perceived negative into a positive, by highlighting that Welch’s 100% Grape Juice contains the perfect blend of natural sugars (36g) and carbs (38g) per serving which gives an all-natural spike in energy after consumption without the side effects (Welchs.com, Product Info, 2011). • Energy and sports drink market is expected to reach US$ 19.7 billion by 2013, which is a larger potential playground for Welch’s (Energy Drinks Industry Statistics, 2011). • Marketing to exercise fanatics creates an opportunity to expand distribution to retailers that don’t traditionally stock fruit juices including gyms and health & fitness stores like GNC.
  16. 16. Running head: WELCH’S 100% GRAPE JUICE IMC PLAN 16 Potential Strategy RisksAs is clearly evident, the CTB statement proposes a shift in the primary target audience andpositioning:From: Targeting predominantly Caucasian To: Targeting 21-30 males and females of allmothers of children between the ages of 6 – 12. genders, working professionals who take workPositioning Welch’s 100% Grape Juice as a and working out seriously. Evolving fromhealthy family-oriented juice filled with family-oriented, wholesome to more energeticeverything a growing child needs. and innovative while still maintaining the all- natural goodness image.There is a perceived risk of overlooking Welch’s current target; however the heritage andfamiliarity of the brand amongst previous generations will ensure that the juice is still a familyfavourite amongst mothers looking out for their child’s nutritional requirements. There is also a potential risk that the desired target perceives Welch’s 100% Grape Juiceas a child’s drink and don’t see the added benefits of consuming it over sports and energy drinks.It is the role of marketing to tackle this in a way that convinces them that the juice meets theirdemanding physical needs and provides them with additional, while at the same time makingthem aware of the negatives of consuming sports and energy drinks. The marketing efforts shouldbe designed to appeal to them in an aspirational way and convince them that the message istailored specifically for them. Tag LineGet Juiced Up. Tagline Rationale • ‘Juicing up’ is a popular phrase amongst athletes who take performance enhancers. • ‘Juicing up’ gives you a competitive edge. • The tagline ‘Get Juiced Up’ borrows the positives from the ‘juicing up’ phrase, namely, a competitive edge while at the same time, it eliminates the negative connotations as consumers are generally aware of the additional benefits of consuming natural juices. • The line will resonate with consumers both looking for and not aware of alternatives to energy / sports drinks.
  17. 17. Running head: WELCH’S 100% GRAPE JUICE IMC PLAN 17 COMMUNICATION TACTICSSpider Chart (see Appendix B)Press Ads (see Appendix C) PR / Promo Activities Theme: Welch’s Summertime Shape UpThe concept revolves around the idea of getting working people excited about exercise andmaking the Welch’s Grape Juice name synonymous with exercise and the benefits of consumingit before a workout (the energy boosting properties) and as part of a healthy diet program.PR ConceptThe PR concept is two-fold, a bi-weekly exhibition and a weekly ‘Welch’s workout in the park’event. The bi-weekly exhibition will take place on Mondays and Wednesdays and involvesplacing fitness/exercise equipment in high traffic commuting areas targeting 21+ workingindividuals. Bench press machines, stationary bicycles, rowing machines and exercise bencheswith dumbbells will be strategically placed outside subways, next to bus stops and in city parkinglots at 5:30pm when workers have finished with the daily grind and are commuting home. Using the equipment will be Welch’s representatives wearing Welch’s branded gym gear,they will be performing exercises and distributing samples of the juice as well as informationflyers listing the health benefits of drinking grape juice, including to but not limited to its naturalenergy boosting properties, which is very useful if one is considering a workout session after along day at the office. The flyer will also contain information on the in-store promo discussedlater and the weekly ‘Welch’s workout in the park’ event, also discussed below. A weekly ‘Welch’s workout in the park’ event will be hosted at parks convenientlylocated near the CBD’s (central business districts) of the below listed cities’. Welch’s willprovide big branded purple exercise balls and there will be professional gym instructors leadingcrowds in an exercise session. The weekly event will be conveniently hosted at 6pm on Fridayevenings, giving workers enough time to commute to the selected parks. Samples of Welch’s Grape Juice and printed material detailing the benefits of drinkingthe juice will be distributed, including its energy boosting properties. The event will be on a firstcome first served basis, and limited to 200 people per city per week. The public who take part inthese events will be encourage helping in the post-event clean-up efforts.
  18. 18. Running head: WELCH’S 100% GRAPE JUICE IMC PLAN 18 Both PR events will take place in the summer months of July and August and both willtake place in the larger cities around the USA including Chicago, New York, Washington, LosAngeles, San Francisco and Atlanta.In-store Promo ConceptAs promotional support to the PR campaign, Welch’s will run a 2 month (July/August)nationwide in-store promo in which people can win instant exercise related prizes when buying abottle of Welch’s. The instant prizes will be printed below bottle caps of all sizes of Welch’s Grape Juicebottles. There will also be flyers attached to the bottles detailing the health benefits of the juice aswell as highlighting the competition. In-store displays including shelf wobblers, danglers and endof aisle displays will be made use of to highlight the promotion.The prizes will include: • (3) Grand Prizes: 1 year free gym membership at a gym of your choice and a dedicated personal trainer for 3 months. • (50) 2nd Prizes: 6 months free gym membership at a gym of your choice. • (10 000) 3rd Prizes: Welch’s branded exercise balls. • (100 000) 4th Prizes: Free Welch’s Grape juice 14oz bottle. Direct / Internet Activities Theme: Unlock the power of purpleDirect (Teaser Mailer)A small purple envelope will be sent to a database of potential consumers obtained from a largegym chain in various cities around the USA. The database will consist of people who aremembers of the gym and frequent it between 5pm and 7:30pm, the after-work fitness addicts. The headline on the small purple envelope will read “Unlock the power of purple”.Inside the envelope will be a locker key with a small purple card attached. The copy on the cardwill read “Curious? Visit www.powerofpurple.com.”
  19. 19. Running head: WELCH’S 100% GRAPE JUICE IMC PLAN 19Internet (Microsite – www.powerofpurple.com)The user is directed to the microsite by the direct mailer.The landing page will contain detailsrelevant to the direct mailer: ‘If you visit one of the listed gyms, your key will unlock a lockercontaining a free Welch’s 14oz bottle’. The goal being to get them to sample the product beforetheir workout. There will be an informative flyer attached to the free bottle listing the health benefits ofgrape juice and details on why to choose it over energy and sports drinks. The microsite will also have an online game. The user plays the role of juice distributer.He/she runs around a virtual 3D gym, armed with bottles of Welch’s 100% Grape juice, the aimbeing to spot people who are tiring while exercising and hand them a bottle of Welch’s 100%Grape Juice to re-energize them. The game is 3D shooter style however instead of killing peopleyou are energizing them with juice. There is a time limit and variety of levels, including theweights room, aerobics room, cardio equipment section and a bonus outdoor park level. Therewill be a high list score on the site and a weekly prize of free juices will be given to the top 5 highscores. There will also be hazards in the game, imposter energy and sports drink characters, theplayer will be armed with mini grape bombs that you throw at the evil energy drinks to eliminatethem. There will be a central stocking point where one can reload with bottles of grape juice andgrape bombs, when you are running low on supplies you will need to return to restock.Additional sections of the microsite will include: • A section discussing the benefits of drinking grape juice. • Exercise videos, programs and tips for people with busy lifestyles. • An ‘ask our experts section’.The microsite will require users to register to view the content and play the game. They willsubsequently receive information on Welch’s, coupons and future promotions via email.
  20. 20. Running head: WELCH’S 100% GRAPE JUICE IMC PLAN 20CONCLUSIONWelch’s is a strong company with a long history of success and is positioned to remain anAmerican icon for years to come. Welch’s success has largely been attributed to its ability toadapt to changing consumer preferences, most notably in terms of innovating to release newproducts that pre-emptively satisfy consumer needs. The new proposed strategy for their 100%Grape Juice continues this long standing tradition by adapting to current consumer trends basedon the research. Welch’s 100% Grape Juice is undervalued in the market, but does offer verystrong potential for growth. In future years, the organisation will need to adapt to harvest growthopportunities to enjoy continued success.
  21. 21. Running head: WELCH’S 100% GRAPE JUICE IMC PLAN 21ReferencesAdvertisingarchives.co.uk. (2011). Welchs Advertising. Retrieved fromhttp://www.advertisingarchives.co.uk/index.php?service=search&action=do_quick_search&language=en&q=welch%27s .Amanor-Boadu, V., Boland, M., Barton, D., Anderson, B., & Henehan, B. (2002). Welch Foods, Inc.and National Grape Cooperative Association. Arthur Capper Cooperative Center .Coloribus.com. (2003). Grape Juice: WELCHS. Retrieved fromhttp://www.coloribus.com/adsarchive/prints/grape-juice-welchs-4739155/ .Energy Drinks Industry Statistics. (2011). Retrieved fromhttp://www.companiesandmarkets.com/industry-statistics/energy+drinks+industry+statistics.aspx .Global Industry Analysts news release . (2011). Retrieved fromhttp://www.agrimarketing.com/ss.php?id=64770 .Health Benefits of Grapes . (2011). Retrieved from http://www.organicfacts.net/health-benefits/fruit/health-benefits-of-grapes.html .Heckman, Sherry, & de Mejia. (2010). Comprehensive Reviews in Food Science and Food Safety.Institute of Food Technologist .hoovers.com. (2006). Retrieved from http://www-2.hoovers.com/company/Cadbury_Limited/crkjki-1.html .Juice boosts benefits. (2009). Beverage Industry, 100(7), SOI14 .just-drinks.com. (2010). Retrieved from http://www.just-drinks.com/management-briefing/julyaugust-management-briefing-the-private-label-drinks-market-part-i_id101413.aspx .Moses, L. (2008). Best use of print MAXUS. Adweek, 49(20), SR16 .MSU Product Center. (2005). Retrieved fromhttp://productcenter.msu.edu/documents/Working/orangejuice.pdf .Olson, M. (2001). California Table Grapes . Retried fromhttp://www.weightwatchers.com/util/art/index_art.aspx?tabnum=1&art_id=22111 .reuters.com. (2010). Retrieved from http://www.reuters.com/article/2010/02/16/us-kraft-idUSTRE61F2C120100216 .seekingalpha.com. (2011). Coke vs. Pepsi: The Dividend Challenge. Retrieved fromhttp://seekingalpha.com/article/186258-coke-vs-pepsi-the-dividend-challenge .Shyannmcclure.com. (2011). Videos. Retrieved from http://www.shyannmcclure.com/videos/ .Sports Drinks vs Water. (2011). Retrieved from http://www.our-drinking-water.com/sports-drinks-vs-water.html .
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