Ocean Spray Cranberry Classic

Summer Campaign 2011

ÍND

ICE

IND

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Index

Report

Executive Summary ……………………… 3The Consumer ……………………… 5Brand Perception ……………………… 7Brand Diagnosis ……………………… 8Target Audience ……………………… 9Media Strategy ……………………… 10Media Selection ……………………… 11Advertising Program ……………………… 13Budget ……………………… 14CPT Analysis ………………………

15Evaluation ……………………… 16

Appendix

SWOT Analysis ……………………… iQuestionnaire ……………………… iiDetailed Budget ……………………… iiiPotential Designs - Mujer Hoy ……………………… ivSponsorship - 100% Mujer ………………………

vi

2

Executive Summary

Ocean Spray Cranberry Classic (henceforth referred to as OS Cranberry Classic) is the flagship product in the Ocean Spray Cranberries, Inc range. Since it was founded in 1930 Ocean Spray has experienced great international expansion, especially among English speaking markets achieving in the UK alone, sales of some 60 million litres a year.

OS Cranberry Classic is present in over 50 countries, but has only captured considerable market share in those countries in which it has implemented an integrated marketing campaign, communicating to the customer the product's various benefits, such as its fresh, distinct flavour and undeniable health advantages.

In 2007, sales of fruit juices in Spain grew by 8.2%, reaching 325 million euros. Significantly, sales of more exotically flavoured fruit juices (such as the cranberry) outperformed more traditional ones such as orange, pineapple and peach. Despite this progress, sales of cranberry juice are still low and fully 95% of the consumption of OS Cranberry Classic is Spain can be attributed the small British expatriate community.

In addition, upon introducing the product to local consumers OS Cranberry Classic is faced with another hurdle due to the negative Spanish mindset towards the product's packaging. In local supermarkets the “Tetra-Brik” (as it is known in Spain) is chiefly associated with bulk purchases of cheap products, predominantly UHT milk, and very rarely used to contain Premium fruit juices. In short, for a product looking to make a good first impression in a new market OS Cranberry Classic's packaging is at odds with the high quality of its content.

EXEC

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3

EXEC

UTIV

E SUM

MA

RYThis document is therefore an attempt to develop a strategic marketing plan for the entry of OS Cranberry Classic into the Spanish national market. It identifies the following two objectives as essential to the product's successful introduction and survival in Spain.

▪ Identify and educate a target audience about the health benefits of the cranberry, positioning OS Cranberry Classic as the market leader in this sector.

▪ Improve the image of the product through a Premium message to provoke a greater sense of product value at the moment of purchase.

In this hypothetical situation a budget of 40,000 € is assigned by Ocean Spray Cranberries, Inc in order to launch a trial campaign with a duration of three months in the autonomous community of Valencia, (Valencia capital, Castellon and Alicante).

4

The Consumer´s Point of View 

Lack of Brand RecognitionThe OS Cranberry Classic brand is almost entirely unknown in Spain.

Benefits UnknownResearch suggests a lack of understanding about the various health benefits of the product. Very few people were able to acknowledge its specific health advantages such as the effects against cystitis or as an antioxidant.

Low Temporal AssociationIn contrast to other products such as orange juice, which is usually consumed in the morning, cranberry juice is not associated with any particular moment of the day. It is worth pointing out however that juice consumption increases substantially during the warmer months of the year.

An Adult FlavourOS Cranberry Classic stands out as having a distinct flavor that leaves a somewhat dry and bitter aftertaste, making it popular among mature consumers with a more sophisticated palate.

Misleading Packaging.OS Cranberry Classic is a Premium brand. However this is poorly reflected in its packaging. Given the prevalence of the “Tetra-Brik” among supermarket own-brands, upon first contact with OS Cranberry Classic, the Spanish consumer almost automatically identifies it alongside other cheap, low quality products. The production costs involved in changing the product packaging do not allow for sweeping modifications, however the image of OS Cranberry Classic, in the eyes of the Spanish consumer would benefit

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enormously from a redesign to include high quality images of cranberries in a different colour scheme, avoiding white where possible. The packaging of any FMCG product its greatest brand ambassador so full advantage should be taken of this space to educate the target audience with a design that includes detailed information, entirely in Spanish, about the nunmerous qualities of the product.

The Challenge in BriefOS Cranberry Classic is a new product in the Spanish market and remains almost entirely unknown to the Spanish consumer. In addition the many health benefits of cranberry juice are still not fully appreciated and its packaging provokes reactions in contradiction with its premium positioning.

Nonetheless, among today's increasingly product savvy consumer there is a growing emphasis on pursuing a healthy lifestyle and a greater willingness to try new healthy products. The successful marketing campaign will be required to educate potential consumers about the health benefits of the cranberry while simultaneously and continuously casting the Ocean Spray brand in a Premium light. If this mix is achieved OS Cranberry Classic has a great opportunity to capture market share among a receptive, but hitherto uniformed audience.

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Brand Perception

Among the few consumers of cranberry juice in Spain, fewer still have heard of OS Cranberry Classic. This problem is compounded when the first contact with the product often produces negative reactions. The campaign's objective are therefore twofold:

▪ Introduce the product and educate the consumer about the benefits of cranberry juice; its high vitamin C content and positive effects against cistitis.

▪ Stimulate at every possible moment an image of quality, positioning it as a premium product.

Detailed above is the brand perception forecast of OS Cranberry Classic in relation to its main competitors. It is the responsibility of the campaign to stimulate this shift in perception.

Not Premium

Premium

Unhealthy

Healthy

Today

Future

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D PE

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EPTION

7

Brand Diagnostics

The premium image of OS Cranberry Classic is reflected in its price tag but not in its packaging. Therefore at the time of purchase consumers, unaware of the quality of the Ocean Spray brand, perceive greater value in cheaper products.

The above graphic shows the imbalance of consumer brand perception between UK and Spanish markets due to the low regard win which product's packaging is currently held by local consumers. Without a viable modification in the packaging format, shifting attitudes of Spanish consumers towards the “Tetra Brik” will be essential to the product's continued survival in Spain. Reinforcing this image by communicating the product's health benefits will enhance the brand's value and influence consumer's choice of product at the time of purchase.

SpainUnited Kingdom

QualityHealthy

Value

Healthy

Quality

¿Value?

BR

AN

D D

IAG

NO

SIS

8

Target Audience RESUM

EN EJECU

TIVOPrimary AudienceMeet Maribel: Aged between 35 and 55 years, Maribel is a modern mother with a part time job. She predominantly lives in a modern suburb near a big city, where her husband works. She still feels young but she is conscious of her age. She looks after herself and visits beauticians and health centers with some regularity. She is firmly in the ABC1 category and her family has an annual income of approximately 60,000€. Maribel is responsible for the weekly shop, spending on average about 120€ in quality super market chains such as Corte Ingles or Mercadona. She is aregular juice drinker and is aware of cranberry juice but not fully convinced of its benefits. When she is not working, she takes care of the house and children, and tries to get some exercise whenever possible. She reads wellness, beauty, and decoration magazines and is comfortable using the computer, regularly browsing her favourite sites. At the weekend she enjoys going out for dinner with friends or getting away to the country with her family.

Secondary AudienceMeet Sandra: Aged between 28 - 35 years Sandra is an independent, university educated woman who lives away from home and has a full-time job. She has already made the decision to form a family with her partner, or is thinking about it. She has an above average income but still keeps a prudent eye on her personal economy, spending approximately 50€ on the weekly shop. She regularly drinks fruit juices believing them to be an important vitamin source, has heard of cranberry juice but rarely consumes it. She is a modern, active and sporty woman, who is concerned

with her image and diet. Her interests include fashion, politics and current affairs and she loves to travel whenever possible.

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9

Advertising Strategy

Among the national market OS Cranberry Classic is a new product. In addition cranberry juice consumption in Spain is low. It is therefore logical that the marketing campaign adopts a strategy that combines both high reach and high frequency.

ReachIn order to achieve the highest possible reach the campaign shall combine three principal medias: magazine, online and radio, choosing those which offer the greatest penetration among the target audience.

FrequencyAs a new product it is essential to reach a minimum frequency of three times per week taking into account both the weekly shopping patterns of our target audience and the four step AIDA purchasing process.

The strategy also recognizes the rise in juice consumption throughout the summer months and it is therefore considered logical to launch the campaign in late spring/early summer in anticipation of the warmer season.

Campaign ObjectivesExtend the message of OS Cranberry Classic as a quality and healthy fruit juice to 70% of the target audience with a frequency of at least four times per week.

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MED

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ELECTIO

NMedia Selection

Wellbeing and Beauty MagazinesThe high quality and authenticity of such magazines mean they are ideally suited to achieve both of the primary campaign objectives; to educate the target audience through content rich adverts and improve brand image by means of a premium focused creative. However, as the vast majority of magazines of this genre are published monthly, the campaign will struggle to reach the desired frequency if they are used in exclusivity.

Mujer Hoy (Woman Today) magazine has been chosen because of its weekly print run and predominant female ABC1 readership profile. Nevertheless, used on its own this medium is still not considered effective enough to cause the desired impact. For a design guideline see Appendix IV.

OnlineUnlike other media, online advertising offers two way consumer-brand communication and adds invaluable feedback to the campaign. The internet is an important part of everyday life for our target audience and an online presence offers the opportunity to interact with them in a less intrusive manner.

The online contribution will be run in collaboration with www.mujerhoy.com, through a tailored campaign with their “Club de

Probabdores” (Sampling Club). Included in this offer is a branded newsletter, a permanent button on the Home Page and the creation of a tailored campaign microsite. For further information see Appendix V.

RadioRadio brings flexibility to the campaign and is the perfect accompaniment to the print media. It is a malleable communication tool that increases frequency with immediate effect and can be timed to coincide the behaviour of the target audience.

11

…Radio

Cadena100 FM is considered the best option, offering a high coverage among the female ABC1 audience and also a more local penetration.

EventsEvent Marketing provides the opportunity to place OS Cranberry Classic directly in front of the consumer, explain its benefits, collect feedback and actively explain the benefits of the product. By associating the product with appropriate events it is possible to create synergy within the marketing message and promote brand empathy.

100% Mujer (100% Woman) will run for one month in Valencia in collaboration with Cadena Cien and offers sponsorship and product placement opportunities throughout a range of woman-centric events. For further information see Appendix VI.

SamplingThe transition from desire to purchase will be aided by a targeted sampling campaign. Teams of brand ambassadors in or close to the main points of sale will distribute samples, explain the product's benefits, interview consumers and collect feedback.

Other ConsiderationsSocial Networks: Extend current Facebook and Twitter presence to include information in Spanish. Cost effective but requires constant monitoring. Television: Long term consideration to significantly increase reach. Expensive.

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Ocean Spray Cranberreis Inc has assigned a budget of 40,000 € to this three month campaign.

As a new product in the Spanish market the importance of high coverage among the target audience can not be underestimated. Given its highly targeted readership of nearly two million, Mujer Hoy magazine brings exceptional reach to the campaign and is accordingly attributed 50% of the budget. 15% is allocated to an online presence through a tailored campaign in collaboration with www.mujerhoy.com.

To promote the product close to the time of purchase it is considered necessary to devote 14% of the budget to a sampling campaign, recruiting brand ambassadors to educate potential consumers with the objective of converting interest and desire into sales.

As a short campaign it is essential to reach the desired frequency without delay. For this reason 11% of the budget is assigned to radio as it is capable of making an immediate impact. Included in the radio budget allocation is the sponsorship of 100% Mujer, a month long woman-centric promotional event in collaboration with Cadena 100 Valencia

10% of the budget is reserved as a contingency in the event of possible price fluctuations and/or campaign modification. For further information about the budget see Appendix III.

BU

DG

ETMedia Price PercentageMagazines 20,000.00 € 50Online 6,000.00 € 15Samples 5,522.00 € 14Radio 4,243.20 € 11Events 00.00 € -Contingency 4,000.00 € 10

Total 39,765.20 € 100

Advertising Budget

14

CPT Analysis

Analysed below are the main media used throughout the campaign from the point of view of their efficiency; i.e. the cost involved in extending the message to one thousand consumers among the target audience, commonly known as Cost Per Thousand (CPT).

MagazineMagazine Cost Readership ABC1 Women Capt Aud CPT

Mujer Hoy 10.000 € 1.877.000 74% 1.388.980 7,20 €

OnlineWebsite Cost Unique

Users ABC1 Women Capt Aud CPT

Mujerhoy.com 6.000 € 2.400.000 55% 1.320.000 4,50 €

RadioStation Cost Listener

s Spot/Wk Wks ABC1 Women Capt Aud CPT

Cadena 100

81.60 € 85.000 4 13 65% 55,250 1,50

€

CPT A

NA

LYSIS

15

Campaign Evaluation

As an unknown product in a new market the ultimate measure of the campaign's success will be the resultant increase in sales of OS Cranberry Classic among Spanish consumers.

In addition however, it is important to measure as often as possible whether the campaign is producing the desired effects among both potential and actual consumers.

Before LaunchAll creative ideas will be tested with focus groups and in depths interviews to ensure the correct interpretation and reception of the campaign message.

During the CampaignDuring the entire campaign interviews with consumers will be held to monitor product acceptance and gauge opinion. The interviews are intended to find out the levels of brand recall, perception and awareness.

Additional evaluationThe campaign with www.mujerhoy.com and the Club de Probadores will provide essential feedback from consumers about the product, likewise any development of Ocean Spray's Facebook and Twitter presence in Spain.

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EVALU

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Internal

Weaknesses

Brand unknown among Spanish consumersPoor quality packagingLack of appreciation for health benefits of cranberry juice Presence of cheap alternatives

External

Threats

More pressure form imitation brandsMore established competitors entering market (Granini, etc.)

Strenghts

Better quality than all rival products25% Cranberry content – more than competitorsThe dominant cranberry juice brand in UK and USWell supported company

Opportunities

Market open to healthy productsProfessional backing of health benefitsConsumer more and more health consciousPossible introduction into “on-trade” markets

S.W.O.T. Analysis

i

ii

 Self Completion Interview 

Gender: M/FAge: - 25, 25-35, 35-50, 50 +  1. Do you consume cranberry juice? Y N (if no please go to question 4)

2. Any brand in particular? _____________________ 

3. How often?

Less than once a day Once a day more than once a day 

4. Do you associate cranberry juice with any country in particular? _____________________________________________  5. What is you opinion of cranberry juice? _____________________________________________ 

6. Have you heard of Ocean Spray? Y N 

7. Are you able to identify any benefits of cranberry juice? _____________________________________________

8. If Ocean Spray were a person what would you think of him/her? _____________________________________________ 

9. What is the first think that comes into your mind when you think of cranberry juice? _____________________________________________

Reasearch rechniques

Detailed Budget

iii

Media

Name

Spec

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Frequ

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Dura

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Audie

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Cost

Maga

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Mujer

Hoy

Full p

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Colo

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00,00

€

we

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1.877

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20.00

0,00 €

Onlin

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home

, micr

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11.00

0,00 €

daily

1 mon

th61

7.000

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00 un

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00,00

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Radio

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Above the Line Below the Line

Magazine: Mujer HoyPotential design

iv

Club de Probadores (Sampling Club)Ocean Spray Microsite in www.mujerhoy.com

Potential design

v

Sponsorship - 100% Mujer

For one month in Valencia Cadena 100 FM will hold a series of promotional activities targeted, as the name suggests, exclusively at women.

The event focuses entirely on women and their role in all aspects of daily life. It will include a series of hands-on activities such as sport events, fashion and beauty sessions and wellbeing seminars, with the aim of enhancing and empowering the role of women in today's society .

The sponsorship includes:

- Sponsor's name throughout the promotional radio campaign to be held during the week preceding the event.

- Sponsors logo on all marketing collateral associated with the events; newsletters, press releases etc.

- Banners and posters at chosen events.

- A campaign of 20 second radio adverts on Cadena 100 FM throughout the event.

vi

A report by Michael Messum

On behalf of Jasa Internacional S.A.

Tel: 675 367 683Email: mickmessum@hotmail.com