Web viewChanging the soda paradigm is just one of the ways Zevia CEO Paddy Spence is shifting the...
Transcript of Web viewChanging the soda paradigm is just one of the ways Zevia CEO Paddy Spence is shifting the...
TABLE OF CONTENT
Company Analysis………………………………………………………………………………2-4
Consumer Analysis……………………………………………………………………………...5-8
Survey Analysis………………………………………………………………………………..9-26
Market Analysis………………………………………………………………………………27-31
Product Analysis……………………………………………………………………………...32-36
Competition Analysis………………………………………………………………………...37-40
Problems and Opportunities………………………………………………………………….41-43
Objectives…………………………………………………………………………………….44-50
Budget………………………………………………………………………………………...51-55
Schedule………………………………………………………………………………………56-57
Recommendations……………………………………………………………………………58-60
References……………………………………………………………………………………61-65
Video Advertisement…………………………………………………………………………66-68
Direct Mail Advertisement…………………………………………………………………...69-72
Web Advertisement…………………………………………………………………………..73-75
Outdoor Advertisement………………………………………………………………………76-78
Radio Advertisement…………………………………………………………………………79-81
Other Advertisement…………………………………………………………………………82-84
Meeting Minutes……………………………………………………………………………..85-91
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COMPANY
ANALYSIS
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COMPANY ANALYSIS
Changing the soda paradigm is just one of the ways Zevia CEO Paddy Spence is shifting
the beverage market. In 2007, Zevia launched in Seattle, Washington (Personal Communication,
Natalie Gershon, Director of Marketing at Zevia, April 1, 2012), becoming the only company to
release a zero-calorie soda, sweetened entirely of Stevia (Charles, 2012). Currently, Zevia is
available in 15 flavors at retailers including Whole Foods, Target, and Kroger locations with
intention to spread into additional markets (‘Soda’ No Longer, 2012).
Since its start in 2007, Zevia has quickly grown to one of the best-selling beverage brand
in natural products retail stores. In 2010, with its rising success, Paddy Spence announced an
investment in Zevia LLC. Spence said, “Consumers are seeking alternatives to carbonated
beverages laden with sugar and artificial sweeteners, and Zevia offers a true point of
difference…as the first and only soda brand completely focused on Stevia-sweetened solutions,
we’re providing a healthy option for soda drinkers” (“Paddy Spence,” 2010, para. 3). In
November 2010, Zevia moved to California when a “new management team came on board. As
the company was still young, small and flexible, this change seemed fairly seamless, moving a
team member and allowing another to remain in Seattle working remotely” (Personal
Communication, Natalie Gershon, Director of Marketing at Zevia 2012).
Before coming to Zevia, Spence founded SPINS, a market research provider and has had
previous leadership position for natural brands, like Kashi cereal and Nature’s Gate personal care
items, Levlad. Once Spence joined the Zevia team as CEO and Chairman, he hired previous team
members including Robert Gay, Senior Vice President for Sales and Marketing, who helped
build Silk soy milk into a leading brand.
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Since Spence became CEO and Chairman, Spence has been making huge leads for Zevia.
Last year, Spence focused on launching new products, which now includes 15 flavors. In
addition, Spence sealed a multi-year deal with Sweet Green Fields LLC to supply California-
grown Stevia for the company. Spence noted, “Given that our consumers places high value on
products that utilize locally grown ingredients,” (Gardner, 2012, para. 4). This change brought a
huge advantage to Zevia because it opened them to a new market as Spence and his team
continues to expand Zevia.
In 2012, Spence wants to concentrate on telling Zevia’s stories to consumers, which
includes creating a new role for soda: one that can be something an individual can enjoy but
without the negative attributes. Part of Spence’s plan to focus on Zevia’s story was to hire a
traditional media outreach firm, Extension PR. With Extension PR, Spence’s goals include social
media development and raising Zevia’s Facebook fan base from 3,000 fans to 16,000 by early
2012 (Stein, 2012).
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CONSUMER
ANALYSIS
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CONSUMER ANALYSIS
While the survey gave several brand insights, unfortunately it did not provide much in the
way for establishing a primary market. Since the survey could only be sent to friends or close
acquaintances naturally it would not provide exhaustive consumer analysis.
Primary Target
According to a web audience analyst tool, Quantcast, in the analysis of Zevia.com, 59%
of the users that access the site are women, 59% have completed college or graduate school, and
Quantcast categorizes the users as older. The report says the 55-64 age group has the highest
index rating of 158 (Quantcast, 2012).
MRI does not have a listing for Zevia, so similar categories were looked at. There is no
all natural soda category, so artificial sweetener category was the closest. The reason is people
that use these sweeteners usually do so for dietary reasons. In order to identify the primary target,
a consumer group that cares about nutritional content was important. As a group looked at the
artificial sweetener category, and narrowed it down to Truvia as one of the categories. While
none of the users on the survey did list Truvia as a preferred sweetener, it is a proprietary blend
based on Stevia, so it is the closest category until MRI adds Stevia (MRI, 2010A).
Truvia became the number two sugar substitute in the country (Marketing Weekly News,
2011), so it is important to target these users based on the similarity in sugar type. Based on the
Truvia category, the 55-64 women who used Truvia had an index rating of 125 (MRI, 2010A),
indicating its popularity within this group. This also lines up with the Quantcast findings.
Another key finding from the same MRI data shows that the women in this category have a high
index rating of 157, making more than $150,000 in annual household income.
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In addition to looking at Truvia and artificial sweeteners, it was important to look at diet
cola drinkers because it is used as an alternative soda for many individuals. Backing up the
Quantcast report, in the category of diet colas used in the last six months by women, the 55-64
age group had the highest index rating of 113 (MRI, 2010B). Based on the different groups
looked at in MRI, the best primary target is women aged 55-64 with a higher income that drink
all natural beverages, normally sweetened with an artificial sweetener and/or are diet cola
drinkers.
Secondary Target
For our secondary target, we are aiming for women aged 25-34 that drink regular cola.
Based on MRI findings, on average, most of the survey respondents that drank regular cola were
women and 25 years-old. With so many regular cola users, it makes sense to target individuals in
this group. In addition, the survey showed that most of the survey participants wanted something
different than normal soda, which makes this secondary target relevant. With Zevia and the right
marketing, this secondary target can be reached.
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$150,000+ Annual Income Diet Cola Users
Highly Educated Ages 55-64
Primary Target: Women
Regular Cola Users Wants a Different Kind of Soda
Thinks Soda Cannot be Healthy Ages 25-34
Secondary Target: Women
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SURVEY
ANALYSIS
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SURVEY ANALYSIS
Question 1: Amount of soft drinks consumed
The survey asked how often the respondents drank soft drinks in a week. Asking this
question would help the group get a better idea as to how receptive consumers would be trying a
new soft drink. Of the respondents, 42% said it consumed soft drinks zero to one time a week,
33% said it drank soda two to three times a week, 9% said four to five times a week, and 16%
said it drank soft drink 6 or more times a week. While the zero to one time a week category had
the most respondents for a single group, the majority of the survey users indicated it drank soft
drinks at least two times a week.
Question 2: Type of soft drink purchased
This question asked the kind of soft drink purchased because the group wanted to start to
narrow down the categories and get an idea how popular all natural soft drinks are.
Overwhelmingly, 61% of the respondents said it bought regular soft drinks, 18% said diet soft
drinks, only 9% said it bought all natural soft drinks, 7% of the users said it do not purchase
soft drinks at all, and 5% said other where both listed real sugar as the kind of soft drink.
Taken together, the diet and all natural groups comprise 27% of the respondents. The two
categories have much more in common. Diet users went for those drinks because many are trying
to cut down on sugar, as well as calories. All natural drinkers probably had similar thinking and
might also prefer the taste of natural ingredients.
Question 3: Brand of Soft Drink
With this question, the group wanted to see what brands are most popular and see
whether anyone drank Zevia. Unsurprisingly, the highest number of 40% said it drank Coca-
Cola. Pepsi came in a close second with 33%, 9% said other, 7% said all natural, and 5% said a
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generic store brand which tied with 7-Up. Dr. Pepper came in last with 2%. In the all natural
category, respondents listed Jones Soda, Dry Soda, Blue Sky Soda, and Naked Soda, all of which
mainly use natural cane sugar. Blue Sky does have one zero calorie variant that uses Stevia, but
not across all flavors and variants.
Question 4: Sweetener
This question examined whether users knew what sweetener is used in their soft drink
and the majority did not. Of the respondents surveyed, 67% said it did not know what kind of
sweetener is used their most purchased soft drink, 24% said cane sugar, 7% said
aspartame/nutrasweet, and 2% said splenda/sucralose. None listed Stevia.
Question 5: Most important soft drink quality
This part of the survey asked the users to rank taste, price, brand, and nutritional content
from a most important ranking of one to least important of a four ranking. In the taste category,
54% rated taste as the most important. In price, 41% gave a rating of three, just one rank above
least important. As for brand, 31% gave it a three rating, 29% gave it a two ranking, 26% gave it
a four ranking and 14 % gave it a one ranking. With most of the rankings on the lower end of the
scale, it suggests brand is not the most important consideration. For nutritional content, 43%
gave a low four ranking, with the rest of the percentages going up the scale. With about half of
the respondents divided between the options, the respondents indicated nutritional content is
somewhat important.
Question 6: Place of purchase
The survey asked where people bought soft drinks because it would be good to know
where the consumer usually bought soft drinks, allowing Zevia to be appropriately placed more
often. Of the respondents, 31% purchased at the grocery store, 28% at restaurants, and gas
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stations and vending machines had 19% and 17%, respectively. Only 5% said specialty food
stores.
Question 7: Ever tried Stevia?
This question is important because stevia is important to Zevia. It is integral to the drink
and the group needed to know if anyone has tried stevia. Unfortunately, two groups made up
93% and said either no or not sure. Only 7% said yes it have previously tried it. However, the
survey discovered that most people do not care what flavors their soft drink, according to
question four of the survey.
Question 8: Stevia Taste Rating
This question asked how the consumer would actually rate the taste of whichever stevia
soft drink the consumer had previously drank. Out of 12% that did try it, 7% rated the taste as
good, the second place ranking below very good and the remaining 5% said very poor and
acceptable. The remaining 88% of course, had no opinion since the majority of the survey
participants have never consumed a drink with stevia. Since such a low number of respondents
rated the taste, how people actually regard the taste of stevia is unclear.
Question 9: Zevia Brand Awareness
This question is very important because the group needs to know how many people have
heard of Zevia. Of the respondents, 93% said it had never heard of Zevia soft drinks and only 7%
said it had heard of Zevia. Clearly, these results indicate that Zevia has a brand awareness
problem.
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Question 10: Ever used Zevia?
The survey asked whether any of the respondents actually have tasted Zevia. Only 2%
said yes and 98% said no or not sure. With such low percentages again, a strong brand awareness
program needs to be created for Zevia.
Question 11: Zevia’s Taste Rating
The very few 2% that did taste Zevia gave it the second place rating of good. Again,
these results did not indicate whether Zevia’s taste is genuinely liked or disliked. Since the
survey had users from a variety of areas, it appears that Zevia is not in enough stores.
Question 12: Reasons for not buying soft drinks
This was a purely qualitative question that asked the survey users why it did not buy soft
drinks. The group thought it would possibly give us ideas in changing the mind of users to buy
Zevia. The users that actually left responses had concerns with nutritional content. One
respondent said that “soft drinks have high calories”, another said “it was unhealthy,” another
one said “it hurt their stomach,” and another said “water is better and more refreshing,” and
lastly, another user said “soft drinks have too much sugar and use artificial ingredients.” All of
these responses indicate a trend that Zevia has the opportunity to change in the consumers mind.
Question 13: Soft Drinks and Healthiness
The survey asked whether soft drinks could ever be considered healthy, 56% said no,
23% said not sure and 21% said yes. The group asked this question to see what their attitudes
about soft drinks were and whether it could change. The 57% seem to have a perception soft
drinks could never be considered healthy. The remaining 44% that said not sure or yes indicate
with the right type of soda and proven benefits, an attitude change about soda can be made. This
change can happen with Zevia.
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Questions 14 and 15: Age and Sex
The average age of the survey users was 25 with 74% of the respondents being female
and 26% of the respondents being male.
Question 16: State
We asked each respondent which state the individual lived in to get a better idea of where
to market the advertisements. Most of the respondents came from the western region of the
country for a total of 18. Seven came from the South, and nine came from the Northeast. The
Midwest had the least respondents with six.
Summary
The survey was conducted through Kwiksurvey.com, which allowed for easy distribution
to an online environment. The survey was posted on group members personal pages including
Facebook. In order to receive the best results from a variety of individuals from various states, an
online survey was the best option.
The greatest amount of the survey respondents lived in the western region of the United
States. The majority was female and the average age was 25. Most of the survey respondents
drank some kind of soft drink, with regular as the most common. Coca-Cola and Pepsi are the
most common brands listed, but the respondents did not list brand as very important when
purchasing a soft drink. The majority of the survey respondents said taste was most important,
but the vast majority did not know what kind of sweetener was used in their favorite soft drink.
Only a few of the respondents knew about or tried Stevia in a soft drink. Very few respondents
had heard of Zevia or tasted it.
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0-1 times a week42%
2-3 times a week33%
4-5 times a week9%
6+times a week16%
1. How Often Do You Consume Soft Drinks a Week?
Regular61%
Diet18%
All-Natural9%
Other5%
Does Not Purchase7%
2. Type of Soft Drink Purchased
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Pepsi33%
Coca-Cola40%
Dr. Pepper2%
7-UP5%
Generic Store Brand
5%
All Natural7% Other
9%
3. Brand of Soft Drink
Cane Sugar24%
Aspartame/Nu-trasweet
7%
Splenda Sucralose2%
Do Not Know67%
4. Kind of Sweetener Used
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5. Most Important Soda Feature
Taste Price Brand Nutritional Content0
5
10
15
20
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Most Important ImportantLess ImportantLeast Important
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Restaurants28%
Grocery Store31%
Gas Station19%
Vending Machine17%
Specialty Food Store5%
6. Place of purchase
Yes7%
No49%
Not Sure44%
7. Ever tried Stevia?
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Good7%
Acceptable2%
Very Poor2%
Never Have Tried88%
8. How would you rate the taste of Stevia?
Yes7%
No93%
9. Have You Heard of Zevia?
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Yes2%
No88%
Not Sure9%
10. Have you tasted Zevia?
Good2%
Never Have Tasted98%
11. Rate the Taste of Zevia
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12. If you do not buy soft drinks, what is the reason?-I haven’t ever heard of it.
-It is unhealthy.
-I don’t like anything fizzy.
-Because it contains high calories.
-Because it hurts my stomach and does not make me feel good.
-The taste diminishes as calories are reduced/substitutes don’t taste as good, and one
cannot consume full taste sodas consistently for health reasons.
-Water is better for you and more refreshing.
-Too much sugar, artifical ingredients.
Yes21%
No56%
Not Sure23%
13. Could Soft Drinks Ever Be Considered Healthy?
14. Average age is 25.
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Male26%
Female74%
15. Sex
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16. Location of Survey Respondents
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Soft Drink Survey PLEASE ANSWER ALL OF THE FOLLOWING1. How often do you consume soft drinks?
0-1 times a week2-3 times a week4-5 times a week6+ times a week
2. What type of soft drink do you most often purchase?RegularDietAll-NaturalOther. Please List:I Do Not Purchase Soft Drinks
3. What brand of soft drink do you most often purchase?PepsiCoca-ColaDr. Pepper7-UPGeneric Store Brand (e.g. Safeway, Sam’s Club, etc.)All-Natural. Please List:Other. Please List:I Do Not Purchase Soft Drinks
4. In the soft drink you most often purchase, what kind of sweetener is used? Cane SugarAspartame/NutraSweetSplenda/SucraloseSteviaOther. Please List:Do Not Know
5. When purchasing a soft drink, what is most important? (Please rank the following from most important (1) to least important (4)).
TastePriceBrandNutritional Content
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6. Where do you normally purchase soft drinks? (Check all that apply).RestaurantsGrocery Store
Gas StationVending MachineSpecialty Food Store (e.g. Whole Foods, etc.)Other. Please List:
7. Have you ever tried a soft drink with Stevia (sugar substitute)?YesNoNot Sure
8. If you have tried a soft drink with Stevia, how would you rate the taste? Very GoodGoodAcceptablePoorVery PoorNever Have Tried
9. Have you heard of Zevia soft drinks?YesNoNot Sure
10. Have you tasted Zevia soft drinks?YesNoNot Sure
11. If you have tasted Zevia soft drinks, how would you rate the taste?Very GoodGoodAcceptablePoorVery PoorNever Have Tasted
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12. If you do not buy soft drinks, what is the reason?
13. Could soft drinks ever be considered healthy? YesNoNot Sure
14. What is your age? ______15. What is your sex? Male_____ Female_____16. Which state do you live in? __________________
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MARKET
ANALYSIS
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THE BEST MARKET FOR ZEVIA
The soft drink market in the U.S is oligopolistic in nature. In a study, “the top three firms
dominate more than 85% of the market. Coca-Cola is number one among the three, followed by
Pepsi Co. and Dr. Pepper Snapple” (Wood, 2011, Para. 6). In this situation, Zevia may have a
hard time penetrating a market. However, a better growth scenario can be expected owing to the
growing popularity of diet soft drinks. In 2010, “two diet brands, Diet Mt. Dew and Diet Dr.
Pepper, posted volume growth rates in excess of +5%. Diet Coke, though down -1%, moved
ahead of regular Pepsi in the brand rankings and is now the #2 brand” (Sicher, 2011, Para. 2).
Looking specifically at the diet U.S. carbonated soft drink business, there was quite a
gain in 2010, which accounts for 30% of the entire category of soft drinks. Since Zevia has
flavors of Cola, Dr. Zevia and Mountain Zevia, it can target consumers who usually enjoy Diet
Coke, Diet Pepsi, Diet Mt. Dew and Diet Dr. Pepper in current huge diet soft drink market
(Sicher, 2011).
For these reasons, after Zevia targets the all natural soda and diet cola market for the
primary market, it can choose a regular cola drinker for the secondary market. Since Zevia is an
all natural, zero calorie soft drink, all natural soda consumers can be targeted for the primary
market and then the rapidly growing diet soda market can be targeted, too.
In order to better understand Zevia’s demographic market, research based on four MRI
categories was looked at in determining the best market for Zevia. MRI categories include Diet
Cola Drinks, Other Diet Soft Drinks Not Colas, Artificial Sweeteners, Truvia and Splenda
consumed in last 6 months in fall 2010. Truvia is a sugar substitute made from the Stevia plant.
Currently, Truvia is the second bestselling sugar substitute in the United States. Another top-
selling sugar substitute is Splenda, which controls about 60% of the market (Franklin, 2012).
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Without surprise, all the categories have similar demographic results. With these results, the
conclusion can be drawn that white women, post graduate, age 55 to 64, household income of
$150,000+, home value of $500,000+ would be most appropriate for Zevia to target. For the
secondary market, a target age between ages 25 to 34 would help expand Zevia’s potential
market and help create longevity for the brand (MRI, 2010).
For the census region, MRI results vary. Truvia, used in the last 6 months, has the highest
index for the Northeastern region. For Splenda, MRI shows the South is the best region. For Diet
Cola Drinks and Other Diet Soft Drinks Not Colas, have the same results, indicating the Midwest
is the best region (MRI, 2010). Since MRI results were inconclusive, the best part of the country
for Zevia to be promoted is based on articles, not MRI. By the Spins® report for the four-week
period ending July 11, 2009, Zevia ranked the number one soda brand in the northwest,
indicating popularity with consumers. In addition, Zevia makes the top-selling soda in natural
food markets in the West ("Zevia is the," 2009). Therefore, the best region for Zevia to promote
its products will be the West due to current popularity of the product in these regions. This will
allow for easier expansion of the product and psychographic characteristics that are found in
Lifestyle Ranking Index.
Based on Lifestyle Ranking Index, 2010 for the West, it was best to pick cities that have
better access to natural food markets and outdoor activities, while having larger populations of
people, which would help with addressing reach and frequency of the target market. Three areas
that match these characteristics were Los Angeles, California; Denver, Colorado; and Seattle,
Washington. Individuals in these three urban areas have similar psychographics.
Among these cities, Los Angeles has the highest index scores that correlate best with
qualities related to the Zevia lifestyle. To be specific, residents in Los Angeles prefer specialty
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stores because it has the best brands (114), prefer to buy products from specialty stores (112),
and always look for brand name (108). It means that Los Angeles can be our best market because
people in Los Angeles are willing to go to specialty stores for a specific brand. This can be
translated that it will go to a Whole Foods Market for Zevia. Also, Lifestyle Ranking Index
shows that individuals in Los Angeles would pay more for environmentally-friendly products
(113), ban products that pollute (110), and have a duty to recycle (108). Residents also
participate in some sport or exercise once a week (105) and these characteristics can be matched
with our product since our target audience cares more about health, something Zevia products
are aware of.
Individuals in Denver also have similar psychographics based on Lifestyle Ranking
Index. It does some sport or exercise once a week (106), have a keen sense of adventure (102),
prefer specialty stores because it has the best brands (105), always look for brand name (103),
would pay more for environmentally friendly products (104), and have a duty to recycle (104).
People in Seattle are similar. Residents participate in some sport or exercise once a week (105),
would pay more for environmentally-friendly products (104), have a duty to recycle (103), prefer
specialty stores because it has best brands (102), and always look for brand name (102). Even
though the overall index number of Denver and Seattle are quite lower than Los Angeles, all
these characteristics are still about average and fit well within our target audience
psychographics. Additionally, based on Zip Code Demographic data from the 2010 census, there
are 1,085,195 white populations and 1,192,378 female populations in Los Angeles ("Los
Angeles, CA," 2012). In Denver, Colorado, there are 415,108 white populations and 287,950
female populations ("Denver, CO -," 2012). And there are 594,978 white populations and
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419,189 female populations in Seattle, Washington ("Seattle, WA -," 2012). These findings,
based on the three cities in the west, help tie in exactly who makes up our target audience.
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PRODUCT
ANALYSIS
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PRODUCT ANALYSIS
Zevia is a product produced to have zero calories and zero sugar. As Zevia states on its
website, it’s a soda plain and simple made with the natural ingredient Stevia and tastes great.
Zevia doesn’t use artificial flavorings or sweeteners. The product was created in response to the
“Sugar Epidemic” and the way it is tied to obesity and diabetes. The company states, “sugar is
killing us,” ("Zevia faqs," 2012). Zevia is the only beverage product on the shelves that is
sweetened by Stevia and is classified as a first to market product that will contribute to the
success of Zevia ("Two small beverage," 2012).
The sweetener Stevia is unique in that it’s an all-natural product and is derived from a
plant from the sunflower family from South America ("Zevia faqs," 2012). Reb A is extracted
from the Stevia plant and is the sweetener that is in high demand by beverage manufacturers.
Zevia signed a multi-year contract with Sweet Green Fields (SGF) to become its only supplier of
Stevia. SGF produces Stevia in California and generates enough high Reb A to meet high the
high quality required by Zevia but also more reasonable cost wise ("Sweet green fields," 2011).
Zevia sodas do contain caffeine in certain flavors such as Cola (45 mg), Dr. Zevia (42 mg) and
Mountain Zevia (55 mg). Zevia gets its caffeine taste from the coffee bean so it is still considered
all natural (“Zevia faqs,” 2012).
“Natural Flavors” are listed on all Zevia sodas. Zevia will not disclose all the ingredients
used in its flavorings because it wants to remain original and not be copied. Zevia encourages
customers to email it if there is an ingredient it is concerned about. Zevia offers 15 flavors that
consist of Black Cherry, Caffeine Free Cola, Cherry Cola, Cola, Cream Soda, Dr. Zevia, Ginger
Ale, Ginger Root Beer, Grape, Grapefruit Citrus, Lemon Lime Twist, Lime Cola, Mountain
Zevia, Orange, and Strawberry (“Zevia faqs,” 2012).
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Aluminum cans are Zevia’s choice of packaging. Zevia chose this type of material for the
environment, stating that it is two times more likely to get recycled. Zevia is also concerned with
weight and shipping so aluminum seemed to be the right way to go to do right by its customers
(“Zevia faqs,” 2012).
To encourage consumers to try Zevia, the company offers coupons that can be obtained
through its website. Zevia is sold at leading retailers like Wholefoods, Super Target, health food
stores and online stores like Amazon.com. Large chain grocery stores like Kroger also carry
Zevia (“Zevia faqs,” 2012).
The brand’s image really does not represent anything unique. It is packaged in an
aluminum can that is the same packaging as the major Carbonated Soft Drink (CSD)
manufacturers. The label shows the Stevia leaf but the consumer wouldn’t know that by looking
at the brand unless you read that it is an all natural sweetener. It does state clearly, however, that
it is all natural and zero calorie, zero sugar. From the survey that the group conducted on the
product, the group discovered that most people haven’t heard of Zevia and are not familiar with
Stevia. However, out of the 43 responses received for knowledge of the sweetener used, 28 of
the respondents did not know what sweetener was used in its soft drink of choice in general.
While three people have heard of Zevia, only one respondent could rate the taste of Zevia. The
brands image is not familiar with the general public as our survey confirmed and the general
public is not familiar with Stevia as a sweetener that identifies Zevia as a health benefit for
which it is marketed.
More health conscious individuals know it should avoid sugar but people still enjoy the
bubbly fizz of soda pop and find it hard to resist. Newer brands of all natural soda pop are
becoming more popular on grocery stores shelves. These brands carry an increasing amount of
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flavors, are sweetened differently, some are organic some are marketed to be exotic, and all are
low in calories (Brown, 2011).
Over a hundred years ago, soda pop began to have problems. Manufacturers replaced
natural flavors with artificial flavors. Sweetener was changed from fructose to corn syrup and
bottles were replaced by aluminum cans. Finding a good soda became nearly impossible by the
1980’s because of these changes (LaTampa, 2005).
According to Kim Lopez-Walters, food and beverage senior director and consumer
strategist for Iconoculture, the carbonated beverage is suffering from a broader issue, “The
category is declining because it’s become a commodity. What’s missing in many large CSD
brands is that people don’t connect with it. These brands are not very special or unique” ("Health
trend gives," 2007, Para. 4).
Consumers wanted more natural flavors in soda pop and entrepreneurs began creating an
array of all natural soda with natural flavorings that can be found everywhere that soda
beverages are sold. Having a soda can be nostalgic for adults. It takes the consumer back to the
time when soda in the mass-market place was made from real ingredients, not artificial ones. An
adult experiences complexity in a soda compared to a child who just wants to drink it. The adult
experience of drinking a natural soda is a series of senses exploding from the aroma, the way it
feels in your mouth and the complexity of the how it taste. A soda is drinking something that
creates a fun experience (LaTampa, 2005).
Zevia was created as an answer to products created by Coke and Pepsi that is not as much
a natural product. It is the first product to use the natural ingredient, Stevia. The product has
increased eight fold since being created in 2008. Zevia was originally launched to be a dietary
supplemental product ("Two small beverage," 2012).
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Stevia has received Federal Drug Administration (FDA) approval for “Generally
Regarded As Safe” (GRAS) approval as a food additive. However, it has served as a double
edged sword to companies like Coke, because Zevia will use this as an opportunity to use
GRAS’s in its products as well. Zevia feels that it will have a highly competitive advantage in
meeting consumers demand to be rid of artificial sweeteners ("Two small beverage," 2012).
The Huffington Post conducted a taste test and Zevia came in last out of 14 all natural
sodas tested. Reed’s Ginger Brew and Spindrift tied for first place in the taste test. The flavors
tested were Black Cherry, Caffeine Free Colas, Cola, Cream Soda, Dr. Zevia, Ginger Ale,
Ginger Root Beer, Grape, Grapefruit Citrus, Lemon Lime Twist, Mountain Zevia and Orange.
The most notable flavors were Black Cherry and Original Cola. The most distinctive comment
was the artificial after taste and how strong it is. However, it was noted that drinkers of diet soda
pop products would definitely relate to it and like it ("The best natural," 2011).
36
COMPETITION
ANALYSIS
37
COMPETITION ANALYSIS
The competition in the all-natural soda market is very large. When shopping for Zevia at
King Soopers in Fort Collins, Zevia was shelved in the same proximity to other competitors in
the all-natural soda category. This information serves as bases to conduct the competition
comparisons.
Hansen’s Sodas appear to be a very close competitor to Zevia. There is a striking
resemblance in its packaging compared to Zevia in that both companies use aluminum cans.
However, the Hansen brand is more identifiable with the general public because it has been on
the market longer. Hansen’s is proud that its soda is “missing a lot of stuff.” It doesn’t use
caffeine, artificial flavoring or colors. It uses only really fruit flavors, real spices, real sugar, and
zero-calorie Splenda (made from real sugar) or Truvia (made from the Stevia plant). Hansen’s
offers a large variety of flavorings with eight being in the diet category, 13 listed in the non-diet
category and Club Soda, Tonic Water and Ginger Ale is listed separately on its website.
Hansen’s also manufactures Blue Sky and Blue Sky Free all natural soda and regardless of the
brand of soda, its ingredients are the same in all its product offerings ("Explore our brands,"
2012).
Hansen uses Ambassadors and Blue Sky’s Wanderers to get out and meet both of its Blue
Sky and Blue Sky Free target audiences. The Ambassadors and Wanderers travel in a
Volkswagen bus and greet its fans with free soda. The Ambassadors and Wanderers document its
travels using Facebook and Twitter and utilize blog pages to keep fans up to date on events and
travel experiences. Hansen and Blue Sky occasionally hand out t-shirts and other promotional
items it refers to as “schwag” ("We're social," 2012).
Blue Sky Free is the direct competitor with Zevia because it has zero calories. Blue Sky
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Free offers Free Lemonade, Free Mandarin, Free Cola, Free Creamy Root Beer, Free Jamaican
Ginger Ale, Free Cherry Vanilla Crème and Free Lemon Lime with zero calories ("Explore our
brands," 2012).
Blue Sky Natural offers natural cane sugar drinks with four flavors, three Seltzer drinks,
five organic drinks and 12 drinks under the real sugar category on its website. Each drink has
between 130 calories and 190 calories depending on the flavor of the soda ("Explore our brands,"
2012).
When you link the Blue Sky website through the Hansen’s website, it has a tab for the
“Stevia Challenge” that directs you to its Facebook page. However, when you click on the icon,
it doesn’t explain what the “Stevia Challenge” is. It just directs you to other social media links it
is using and provides company information ("Blue sky Stevia challenge," 2012).
Izze is an all natural soda that claims good taste comes naturally. It uses fruit juices in
sparkling water without refined sugars. The first flavors that it introduced to the market were
Blackberry, Lemon, Grapefruit and Pear. The healthy sector of the market responded favorably
especially mothers with children, hip singles and celebrity personalities. Currently, Izze offers
six flavors that include: Sparkling Lime, Sparkling Blueberry, Sparkling Peach, Sparkling
Blackberry, Sparkling Apple, and Sparkling Nectarine. The product contains 70% fruit juice with
a splash of sparkling water and doesn’t explain the sweetener it uses. Izze’s products are all
caffeine-free and contain 130 calories ("About izze," 2012).
Izze has an online product store that sells apparel, accessories, drinkware and gifts. It is
active on Twitter but doesn’t represent Facebook on its web page. Izze interacts with its
customers through “Izze Art,” where it displays photography that customers send it interacting
with Izze products, as well as other opportunities to create something artful for Izze and share it
39
("Create and share," 2012). It produces a blog that shares event experiences that it has
participated in or will participate in promoting the Izze products ("Blog," 2012).
Santa Cruz Organic sparkling beverages is organic and made of “zippy” flavors,
according to its website. Its full line of flavors include: Ginger Ale, Lemon Lime, Lemon,
Mango Lemonade, Orange Mango, Pom Limeade and Raspberry Lemonade and Root Beer
sparkling beverages. Each drink contains between 100 to 140 calories. Santa Cruz Organic
products contain no artificial ingredients but are tingling to the senses. Santa Cruz Organic is
different because it offers USDA certified organic soda options ("Sparkling beverages," 2012).
Santa Cruz Organic touts that it’s committed to education and ecology with the intent to
raise awareness about the benefits of organic agriculture. It is proud that it’s a Green-E certified
business because it reduces waste and recycles 96% of its products. Santa Cruz Organic is in the
process of offering an online coupon to its customers that can be printed off of its website for
future discounts. The public outreach is focused on the environment instead of contest and social
media reach to its target audience ("Sparkling beverages," 2012).
Jones Soda Co. was formerly known as Urban Juice and Soda Company, Ltd. until
August 1, 2000. Jones uses unique packaging and it constantly change out their labels to use the
customer generated labels. Jones is unique in its marketing strategies and as the website states, it
has created a cult following. Jones is very interactive with its customers through contests and
visiting its customers from coast to coast in the Jones RV. Jones soda is made from pure cane
sugar and it offers the following flavors: Cola, Strawberry Lime, Green Apple, Cream Soda,
Root Beer, Berry Lemonade, Bubble Gum and Fufu Berry. It uses natural flavoring but doesn’t
state the calories of its drinks ("Jones products," 2012).
40
PROBLEMS AND
OPPORTUNITIES
41
COMPANY PROBLEMS AND OPPORTUNITIES
Problems
Zevia just cannot compete with larger soda makers in terms of dollars. The company is
much smaller and only made $3 million in 2009 (Dietrich, 2009), which is dwarfed by larger
soda sellers like Coca-Cola. Due to this, Zevia cannot just throw around advertising dollars
around like larger soda companies do. The company will have to utilize more inexpensive ways
to advertise. Zevia cannot afford to run advertisements on primetime television, so different
media will need to be utilized.
Zevia has a major problem is that Zevia has poor brand awareness. The vast majority of
the survey participants had never heard of Zevia. The survey users came from different areas of
the country so it is reasonable to assume it needs to use heavy and well spent advertising to get
its name out there more often. Again, it will not be easy to compete with the larger soft drink
makers, but it can be done. Once the consumer learns Zevia does not use sugar, it has a huge
advantage.
The price of the product is another weakness of the company. Zevia is not yet big enough
to where it can lower the price to compete with other soft drinks. Unfortunately, this is a major
hurdle. Zevia costs much more than the average soft drink. On Amazon, the cheapest a 24-pack
can be purchased for is $27. No matter how much a consumer would eventually like Zevia, the
company needs to heavily use coupons and stretch its budget to get the price down as much as it
can to entice new consumers to try its product.
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Opportunities
Zevia could fill a pretty important niche if trends in obesity keep continuing the way they
are. Obesity is becoming an epidemic among multiple age groups, and sugary beverages are
thought to be one of the causes (Lavizzo-Mourey, 2009). Since Zevia’s product does not use
sugar, it can make itself stand out by noting the company is not contributing to the obesity
epidemic and in fact, the company could argue it is fighting against it. If there was a massive
shift to sodas that did not use sugar, Zevia would already have a head start. Moreover, it would
have a public relations boost over companies like Pepsi and Coca-Cola. It could simply note the
products the company sells that have never used sugar, unlike the rival companies’ drinks.
Based on the survey, the idea of a soda that is actually healthy would be very appealing.
Most of the survey participants said that soft drinks could never be considered healthy. If Zevia
could change the opinion, the company would have a unique identity. While Pepsi and Coca-
Cola do sell numerous all natural products, it would be unlikely for anyone to perceive their soft
drinks as healthy.
If Zevia could convince consumers that Zevia products are healthy, Zevia can sweep up
the all natural, diet cola, and regular cola users who want to cut down on sugars, as well as those
who would want to drink soda but do not because these users do not like the nutritional content.
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OBJECTIVES
44
COMMUNICATION OBJECTIVES:
1). To boost brand awareness.
Zevia is a new product that is not familiar to most consumers. Without having brand
awareness, you can’t expect the consumer to have brand loyalty. In order to address this
problem, an advertising campaign was developed to help promote brand awareness within the
target audience. The campaign will promote Zevia as the product name with the assistance of an
icon bubble man to attach association to the brand to influence perceptions. By creating strong
brand awareness, the consumer will realize the product has substance with health benefits. A
well-known awareness of the brand tells the consumer that others have found the brand and like
it so it will have more confidence in trying it. Top of mind awareness is key, so that consumers
consider Zevia first when selecting an all natural soda.
2). To create overall trust with target customers.
Through our advertising campaign, a focus on Zevia’s healthy product qualities is
addressed. The television and radio advertisements highlight Zevia as an all natural soda, that
contains zero calories and zero sugar made from the botanical sweetener, stevia. By focusing on
these qualities of the product, it will promote Zevia in a unique way compared to its competitors.
Overall, the campaign takes a look at the health benefits of Zevia in developing trust with the
potential target consumer with health issues or consumers that are interested in products that
promote healthy living to match its lifestyle.
3). To create greater demand for Zevia products.
Since Zevia is still a fairly new product, a coupon will entice the consumer to try Zevia
from the direct mailer piece. It will be a way to get the consumer who usually drinks diet soda to
try Zevia because it is zero calories and zero sugar that contributes to a healthier lifestyle than
45
diet soda. By using a coupon, it will help to draw in new sales since Zevia is a new product that
the consumer is unfamiliar with. It will also encourage repeat purchases that will in turn, increase
sales of Zevia. When the consumer has tried Zevia and discovers that it’s fresh and bubbly and
provides healthy alternatives to diet soda, Zevia will become the brand he or she prefers over all
others in the diet soda and all natural soda category. The coupon will be delivered to the
consumer’s mailbox through a direct mail piece for $1 off for the convenience of trying Zevia
and create an incentive to try Zevia. The company will also benefit from the use of the coupon to
learn about consumer purchasing behavior to assist in identifying target markets for the product.
CREATIVE OBJECTIVES
1). To get the consumer to associate Stevie the Bubble Man with Zevia for its bubbly
qualities.
Stevie the Bubble Man was created for the advertisement campaign to influence the
perception the consumer has with the product Zevia. The brand alone is very basic and doesn’t
leave much to remember. Stevie the Bubble Man will act as a spokesman for the product by
always being followed by a trail of bubbles. When first trying Zevia, the consumer will notice
the tingly sensation it leaves in their mouth, which is caused from the bubbly taste. Stevie will
deliver the message that after trying Zevia, “You’ll have to admit, it’s fresh and bubbly.” This
tag line was created to entice the consumer to try the beverage and experience the bubbly
qualities of Zevia. He will adapt to the advertising message but will always be associated with
the Zevia soda can and tagline.
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2). To increase brand insistency over Zevia's competitors.
Zevia wants to be the brand a customer strongly prefers when deciding on an all natural
soda or switching from diet soda and/or regular soda. When the customer goes to the store to
purchase Zevia and it is unavailable, he or she will go out of their way to find Zevia at another
store and not accept a substitute brand. To assist the consumer when it arrives at the store, a floor
decal of bubbles and the Zevia logo will be at the aisle where Zevia is shelved. The intent of this
point of sale (other advertising option) is to get the consumer to overlook all other brands on the
shelf and select only Zevia. By following the Zevia logo and a trail of bubbles, it will help the
consumer find the Zevia shelving, followed by another $1 off a 6-pack coupon to help finalize
the purchase. Creating this type of brand loyalty will give Zevia the competitive advantage over
its competitors.
3). To demonstrate to potential customers how the brand will enhance their healthy choice
lifestyles.
The advertisement campaign was designed to show that soda isn’t a bad word any more.
For people who have diabetes and the high percentage of individuals that are obese, Zevia soda
offers them a safe alternative to artificial sweeteners with the botanical sweetener, stevia. Stevie
the bubble man adds a dimension to just soda by promoting the product as fresh and bubbly. The
design of the web banner, bus banner and through the message that is conveyed on the radio and
video, Zevia is all natural soda that is zero calories with zero sugar. Since this may not be
appealing to the average soda drinker, Stevie the Bubble Man will entice them into trying Zevia
by telling the consumer that it will have to admit that it is fresh and bubbly after it experiences
the all natural taste that creates a tingly sensation in the mouth.
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MEDIA OBJECTIVES
1). To generate exposure about the brand.
Since Zevia is a new product, the advertisement campaign will focus on exposing the
brand and letting customers know about the product. This will be performed through a video on
YouTube, radio, web, outdoor, direct mailer advertising and point of sale floor decals guiding
consumers to the product on the shelf at natural food retailers. All of advertisements feature
Stevie the Bubble Man and the campaign slogan, “You’ll admit, it’s fresh and bubbly.” The icon
of the Bubble Man will promote brand association to a healthy, all natural soda and will establish
top of mind awareness to the target audience.
2). To increase sales by 10% at point of sale.
Floor decals will be laid on the floor of the soda aisle in the grocery store to guide the
customer to the location of Zevia on the all natural soda shelf. Since Zevia is a new product the
customer may not be aware of it. By guiding the consumer to the Zevia, it will entice the
customer to want to try it over the competitors located in the same location because a $1 off a 6-
pack of soda coupon will be offered as an incentive.
3). To enhance Zevia’s image to current and potential customers.
The Zevia image will be enhanced by promoting the product on outdoor advertising.
Advertising on a bus side panel that travels a highly populated route to achieve maximum
exposure to the consumer will be utilized. Radio will enhance the Zevia message because it
offers a platform for repetition of the product information. The website will be announced in the
radio advertisement for customers to visit for more information. By running the spot over and
over, it will stay in the mind of the consumer to help them remember the product. By delivering a
coupon to the consumer through the direct mail piece, it will be delivered directly to the
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consumer with a $1 off a 6-pack coupon to entice the consumer to try Zevia. The consumer may
have already heard about it on the radio or noticed it on the side of the bus and, with the coupon,
it will intrigue the consumer even further to try it. For both target audiences, there will be an
animated banner ad placed on Diabetes Forecast, Prevention, and Health to help create
awareness of the Zevia brand and product.
Public Relations
Public Relations can be used to help Zevia raise consumer awareness. This can be
achieved by reaching out to the consumer on a national level by using print and media outlets
such as the radio spot, bus advertisement, direct mailer piece and video to continue on expanding
the Zevia product as a fresh and bubbly experience although it is associated with being healthy.
Stevie the Bubble Man will enhance Zevia by providing product association that Zevia is just not
a healthy, all natural soda but that “You’ll admit it’s fresh and bubbly.”
Sales Promotions
To promote sales, the advertisement campaign has incorporated a $1 off 6-pack coupon
to entice consumers in to try Zevia. The coupon will be used in the direct mailer piece and
delivered directly to the consumer in its mailbox for the convenience of trying Zevia. A coupon
pad will be placed on the grocery store shelves where Zevia is located. As the consumer is
searching for an all natural alternative to soda, the coupon will help entice them to choose Zevia
over the other competitors located in the same location.
Direct Marketing
These days, customers are much more connected through social media. The consumer
can read comments about the product and get a lot of information on the Internet or via friends.
Therefore, it is important to create a positive word-of-mouth effect about the brand. Since Zevia
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is a new product, by utilizing direct marketing to boost Zevia’s website, blog, and social media
connections, a video advertisement would help create buzz. The second target audience will be
more involved in our direct marketing because it is more familiar with social media. To allow the
second target audience to respond to the product, Zevia’s blog and social media connections will
offer this platform and will be updated daily to help create brand awareness and consistency.
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BUDGET
51
Media Vehicle Price Percentage of Budget
Bus Ads (Outdoor) $270,000 13%
Direct Mailer $760,000 38%
Floor Decals (Other) $20,000 1%
Radio Ad $810,000 40%
Web Banner Ad $90,000 5%
YouTube Video $20,000 1%
Miscellaneous Expenses $30,000 2%
Total $2,000,000 100%
Bus Ads14%
Direct Mail38%
Floor Decals1%
Radio Ad41%
Web Banner Ad5%
YouTube Video1%
Miscellaneous expenses2%
Budget
52
The majority of the budget is spent in two areas: radio and direct mail advertising.
Radio totaled $810,000 (40.5%). Radio advertising will be placed during times when
listenership is the highest during rush hour times in Los Angeles, Seattle, and Denver. Three
advertisements will be played daily in each market, for the entire duration of the campaign. Cost
was determined based on the handout received at the beginning of the semester. In addition,
radio stations matching the demographics and psychographics of Zevia’s target audience helped
in determining what radio stations Zevia’s radio advertisement will be played on. The goal with
the radio advertisement is to reach a variety of consumers in one message, which will help with
brand awareness.
Direct mail totaled $760,000 (38%). Direct advertising holds a higher percentage of the
budget because the direct mailer has a coupon that the consumer can utilize, which makes the
mailer more valuable. Since Zevia is a fairly new product, a coupon on the direct mailer will help
entice consumers in trying the products Zevia offers. The direct mailer will be sent out to women
in each of the three markets of Los Angeles, Seattle, and Denver. After looking at jumbo
postcard pricing from various websites, the cost was determined by the three markets, which
approximately 2,000,000 women reside in, according to our research. Based on these numbers, a
large portion of our budget is spent on production and postage.
The next portion of our budget was spent on bus banner advertising, which $270,000
(13.5%) was spent on. After researching the metro transit systems, the group decided to run 35
buses in Los Angeles, 25 buses in Seattle, and 15 buses in Denver, based on the demographic
populations found in the research. To place a king-sized banner on one bus, the banner cost $600
per advertisement, per four week time period. Since the campaign runs six months, the total cost
of advertising will be $126,000 for Los Angeles, $90,000 for Seattle, and $54,000. Bus banner
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advertising is effective because reach and frequency is consistent in high traffic areas, which the
three demographic cities are in.
The web banner advertisement costs $90,000 (5%). After researching MRI+ fall 2010
media, the group discovered similar magazines with the primary and secondary markets, which
lead the group to conclude that Diabetes Forecast (159), Prevention (140), and Health (141)
magazines are the best websites to feature a web banner advertisement on. In order to determine
pricing, the group looked for impressions, which the group found as 250,000 for
Diabetesforecast.com. Based on these numbers, the group was able to determine that each
website would cost $5,000 per month and a total of $30,000 over a six-month period. Since the
web banner advertisement is featured on three websites, $90,000 was the total approximate cost
of web banner advertising on three sites. Web banner advertising is effective because the reach
and frequency is consistent with the psychographics and characteristics of our primary and
secondary target audience.
Floor decals (other advertising) and the YouTube video accounted for $20,000 (1%).
The floor decal, which the group chose as the other advertisement would cost $20,000
(1%). The floor decal would be featured at natural food stores like Whole Foods as a way to
entice and help the shopper follow the Zevia logo and bubbles directly to where Zevia is placed
within the specific aisle of the food retailer. In addition, once the consumer reached the Zevia
position, a coupon will be offered as an additional incentive to choose Zevia over the competitor.
Based on the three cities, 70 natural food stores in Los Angeles, 20 in Denver, and 20 in Seattle
will feature the floor decals. After receiving a quoted price from Kinko’s, the production cost for
the floor decals was approximately $66 per floor decal, totaling $7,260 for all 110 stores. Since
actual store placement costs needed to be considered, the group took $7,260 and multiplied it by
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two to cover the actual store placement costs, totaling now $14,520. The remainder of the
money, $5,480, will be spent on producing the coupons that will be used at the point-of-sale. At
seven cents a coupon, approximately 78,286 coupons will be produced to add to the floor decal
advertising. The overall cost will be $20,000.
The YouTube video accounted for $20,000 (1%). YouTube is a free website that allows
the user to upload videos. While it is free to upload videos on YouTube, actual production of the
video will be needed. Since the video does not require live actors, animators will be used to
create the video, which the $20,000 accounts for. While it was difficult to find actual production
costs, $20,000 was a high estimated cost. A YouTube is easily shared and accessible to different
kinds of viewers and is not limited to the amount of times the consumer can view the video. In
addition, the YouTube video could easily be posted on social media sites, Zevia’s website and
blog. Overall, the YouTube video will provide an easy and effective way to target the secondary
market, which is a tech savvy younger generation of users.
The last portion of our budget will be spent on miscellaneous expenses, which will be
$30,000 (2%). Since costs are unpredictable, the group decided to allocate the rest of the budget
to cover unexpected emergencies.
55
SCHEDULE
56
2012 Bus Banner
Direct Mailer
Floor Decals
Radio Web Banner
YouTubeVideo
June
July
August Sent outJuly 1st, one time
September
October
November
In order to maximize the advertising campaign results, the group decided to separate the
campaign into two different parts to create a progressive campaign that introduces Zevia to the
consumer, followed by a strong presence in August that will last the remainder of the six-month
period and continue on past the six-month period. In June, floor decals, web banners, and a
YouTube video will be utilized. These are subtle ways that the consumer can be introduced to
the product, creating a sense of curiosity. In August, bus banners, a direct mailer, and radio
advertising will be utilized. Since these three forms of advertising are the most expensive in the
budget, the group decided it would be best to utilize these forms a couple months into the
campaign, to guarantee budget safety and campaign success. If the campaign is successful by
August, a sense of curiosity has been built with the consumer and now these consumers will be
looking for the next step of the Zevia campaign, which these promotions will attend to. With this
portion of the campaign, the consumer will now understand and pay closer attention to the
different forms of Zevia advertising due to their immediate presence and magnitude.
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RECOMMENDATIONS
58
Zevia has a unique selling proposition in that it uses Stevia, rather than cane sugar or high
fructose corn syrup in its product. This feature of the drink cannot be neglected. Since obesity
and diabetes are epidemics, this will help Zevia also stand out in stark contrast from its
competitors. Consumers looking to lose weight or diabetics not wanting sugary drinks can turn to
Zevia instead of other sodas. This is why the group recommends Zevia never stop emphasizing
the use of Stevia in its products.
The data from the survey are very clear; Zevia has to go where it is not to be expected.
Since most of the users will not go to specialty food stores that probably stock Zevia, such as
Whole Foods, Zevia will have to make deals to get in the larger grocery store chains in the
future. For this campaign, the group focused on natural food stores for this stage in the product’s
life. Natural food stores are a natural fit and these grocers will have no problem stocking the
product. For future campaigns, the group is recommending Zevia will have to make it into a wide
variety of stores. The company will also have to figure out a way to get into vending machines.
While many purchase Zevia online through mass retailers like Amazon.com, most consumers
will not bother to take the time to order Zevia online and pay for the additional shipping,
indicating that Zevia needs to expand into new areas.
Zevia has a hurdle to overcome in terms of price. Even though advertising highlights that
the soda doesn’t have calories or sugar, the price could still scare off potential buyers. To remedy
this, the group is using coupons heavily throughout this campaign. Consumers will try something
new if they can get a good deal on it. The group also thinks heavily pushing the bubbly and
nutritious angle will help somewhat with the price. The consumer might think they are saving
money in the long run if they are healthier and have fewer health problems. In the future, the
59
group recommends Zevia finds a way to bring down the price of its drinks. Once it accomplishes
this, it will have a much easier time attracting regular and diet soda drink users.
At this stage in the company’s life, where it does not have the revenue for heavy amounts
of traditional advertising, the web will have to be utilized heavily. This campaign uses the
internet for some of the advertising. In particular, the group thinks Zevia should focus on using
viral marketing. In addition to the YouTube video, which could potentially catch on and be
spread on social media, Zevia will have to use as much viral marketing as possible. The soda
maker should have a full-time team that only produces web content that can easily be sent
through Facebook, Twitter, or blogs. The team can still make professional videos and other kinds
of web ads and still operate on a much smaller budget than normal advertising would require.
This extensive use of viral marketing will help the company build a strong base of customers.
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61
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Truvia. Adults. Retrieved from http://ureporter.mriplusonline.com/xt_createsinglereportxls.asp?VolumeID=219&ReportSet=5&ReportID=C38B1I1411
MRI+ (2010). Fall 2010 Product: Beverages. Diet Cola Drinks. Drank in last 6 months total. Adults. Retrieved from http://ureporter.mriplusonline.com/xt_createsinglereportxls.asp?VolumeID=219&ReportSet=5&ReportID=C302B1I1547
MRI+ (2010). Fall 2010 Product: Beverages. Other Diet Soft Drinks, Not Colas. Drank in last 6 months total. Adults. Retrieved from http://ureporter.mriplusonline.com/xt_createsinglereportxls.asp?VolumeID=219&ReportSet=5&ReportID=C687B1I6476
Paddy spence and northwood ventures announce strategic investment in zevia®, a rapidly growing zero calorie natural soda brand. (28, September 2010). Retrieved from http://www.prweb.com/releases/2010/09/prweb4571964.htm
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PRIZM (2011) Market Profiles Reports: Lifestyle Ranking Index. Designated Market Area:Denver, Co. Lifestyle Category: Psychographics. Retrieved fromhttp://www.claritas.com/SRDS/content/print_template.jsp?reportName=Market ProfilesReports: Lifestyle Ranking Index&ms=1334708541962
PRIZM (2011) Market Profiles Reports: Lifestyle Ranking Index. Designated Market Area: Los Angeles, CA. Lifestyle Category: Psychographics. Retrieved from http://www.claritas.com/SRDS/content/print_template.jsp?reportName=Market Profiles Reports: Lifestyle Ranking Index&ms=1334708485830
PRIZM (2011) Market Profiles Reports: Lifestyle Ranking Index. Designated Market Area: Seattle-Tacoma, WA. Lifestyle Category: Psychographics. Retrieved from http://www.claritas.com/SRDS/content/print_template.jsp?reportName=Market Profiles Reports: Lifestyle Ranking Index&ms=1334708432368
Quantcast. (n.d.). Zevia.com traffic and demographic statistics. Retrieved from Quantcast: http://www.quantcast.com/zevia.com/demographics
Seattle, wa - zip code datbase information. (2012, April 17). Retrieved from http://www.zip-codes.com/city/WA-SEATTLE.asp
Sicher, J. (2011, March 17). Special issue: Top-10 csd results for 2010. BEVERAGE-DIGEST.Retrieved from http://www.beverage-digest.com/pdf/top-10_2011.pdf
'Soda' no longer four-letter word for diabetics thanks to culver city company. (2012, March 09). Retrieved from http://losangeles.cbslocal.com/2012/03/09/soda-no-longer-four-letter-word-for-diabetics-thanks-to-culver-city-company/
Sparkling beverages. (2012, March 31). Retrieved from http://scojuice.com/
The best natural sodas: our taste test results. (2011, November 20). Huffington Post. Retrieved from http://www.huffingtonpost.com/2011/09/13/the-best-natural-sodas_n_960188.html
Stein, L. (2012, February 23). Zevia selects extension pr to boost brand awareness. Retrieved from lexisnexis.com.proxy.uwlib.uwyo.edu/hottopics/inacademic
Two small beverage producers step lively against big brands, win marketshare. (2012, March 30). Small Business Digest. Retrieved from www.2sbdigest.com/Battling- Brands-Successfully
(2007). Health trend gives soda segment pop. Top Consumer Trends, 29(8), 134,140. Retrieved
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from http://search.proquest.com.proxy.uwlib.uwyo.edu/docview/204863615?account=14793
We're social. (2012, March 31). Retrieved from http://www.hansens.com/us/en/about-us/social/
Zevia faqs. (2012, March 31). Retrieved from http://www.zevia.com/
Wood, L. (2011, May 6). Research and markets: Us soft drinks market analysis - us sales of nonalcoholic energy drinks projected to reach usd 9 billion in 2011 . Retrieved from http://www.businesswire.com/news/home/20110506005600/en/Research-Markets-Soft-Drinks-Market-Analysis--
Zevia is the #1 brand in the northwest. (2009, August 17). Retrieved from http://blog.zevia.com/2009/08/zevia-is-the-1-brand-in-the-northwest/
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VIDEO
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VIDEO ADVERTISMENT EXPLANATION
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The video advertisement incorporates the overall campaign theme of “You’ll admit, it’s
fresh and bubbly.” Similar to the radio advertisement, Stevie the Bubble Man is the main
character. In this video, Stevie is a playful bubble that loves Zevia and all of its flavors. Stevie
helps promote the lifestyle, product details, and overall campaign theme in a short video. Due to
budget constraints, this television advertisement will be featured on YouTube, where consumers
will have unlimited viewing access and the video can easily be added to Zevia’s website and
blog, in addition to its various social media sites.
In this video, Stevie is presented to the consumer in front of a white background, where
Stevie and the bubbles can be the main focus. As a soft bubble bouncing sound plays in the
background, Stevie is presented as an energetic bubble man, jumping on other bubbles as he
talks about not ‘just not being any bubble.’ As he finishes his qualities, he brings up the concept
of what Zevia is, which ties directly into creating brand awareness for Zevia and ties into the
overall campaign theme of “You’ll admit, it’s fresh and bubbly,” which asks the consumer to
give Zevia a try. Following this scene, Stevie highlights Zevia product features as he’s sitting on
a can of Zevia. This portion is more of a conversation to inform the consumer about Zevia. Since
Stevie is an energetic bubble, he decides to jump onto Zevia cans, telling the consumer they can
try the 15 different flavors of the Zevia product. Finally, he stops at the edge of the can and pops
open a Zevia can and tells the consumer, “You’ll admit, it’s fresh and bubbly!”
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DIRECT MAIL
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DIRECT MAIL ADVERTISEMENT EXPLANATION
The direct mailer piece is tied into the overall theme of the campaign, “You’ll admit, it’s
fresh and bubbly,” while giving the consumer an incentive to try Zevia with a coupon. The direct
mailer piece will be sent to women in each of the three target audience cities.
The front of the mailer piece features the flavors of Zevia on the left hand side, while
promoting the campaign, “You’ll admit, it’s fresh and bubbly” on the right hand side of the
mailer piece, along with Stevie the Bubble Man holding the campaign title in a flow of bubbles.
The background is white, to keep consistent with the overall color theme. The front of the mailer
piece is to promote the images used in the overall campaign, helping bring brand awareness and
association to the various themes created for Zevia.
The backside of the mailer piece features the incentive. On the left hand side of the
mailer piece, a large $1 off a 6 pack of Zevia is featured for the consumer to use on Zevia
products. The main concept behind the coupon was to product brand awareness and insistence.
Since Zevia is a new brand to most consumers, a direct mailer piece would attract attention and
help the consumer keep the mailer in mind once the consumer goes to the local grocery store to
purchase items, hopefully one of which is Zevia. The right hand of the mailer piece features a
light flow of bubbles, exact match to the front page, where the postage details are present.
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WEB
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WEB ADVERTISEMENT EXPLANATION
The web advertisement is tied into the overall theme of the campaign, “You’ll admit, it’s
fresh and bubbly.” In the banner advertisement, which will be featured in on select websites,
including Diabetes Forecast, Prevention, and Health, has a white background, featuring the
campaign title “You’ll admit, it’s fresh and bubbly,” on the right hand of the banner, along with
Stevie the Bubble Man. On the left hand of the banner, the Zevia logo and one of the flavors of
Zevia is featured with a glass of ice and the Stevia leaf. Throughout the banner, light animated
bubbles flow, helping create a flow that leads the consumer through the entire banner. Overall,
the banner advertisement features similar concepts to the other advertisements, helping tie in the
overall campaign.
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OUTDOOR
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OUTDOOR ADVERTISEMENT EXPLANATION
For the outdoor advertisement, a bus banner advertisement is used. The bus
advertisement is tied into the overall theme of the campaign, “You’ll admit, it’s fresh and
bubbly.” In the bus advertisement, which will be featured on buses in Los Angeles, Denver, and
Seattle, four varieties of Zevia flavors are highlighted on the left hand side and on the right side,
the campaign theme and Stevie the Bubble Man are featured. Light bubbles are flowing in the
background of the bus advertisement. The idea is to give the impression of a three-dimensional
illustration to help pop the illustrations in the advertisement. Overall, the bus advertisement
features similar concepts to the other advertisements, helping tie in the overall campaign.
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RADIO
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RADIO ADVERTISEMENT EXPLANATION
The radio advertisement incorporates the overall campaign theme of “You’ll admit, it’s
fresh and bubbly.” Similar to the television advertisement, Stevie the Bubble Man is utilized. In
this radio advertisement, Stevie is this energetic bubble and he has to let the world know exactly
who he is and show off all his great qualities. However, since Stevie is pretty new to the world,
he decides to make the consumer guess exactly who he is and who he belongs to, which helps
promote brand awareness for Zevia and ties into the campaign theme of “You’ll admit, it’s fresh
and bubbly.”
The radio advertisement begins with SFX, a mellow and rock beat where Stevie is able to
introduce himself and his many qualities to the consumer. Next, he asks the audience to guess
what exactly he is, since Stevie knows his audience cannot see him. Following this, Stevie
addresses Zevia’s product qualities, flavors, and product locations. Before the website is
addressed, Stevie says, “You’ll admit, it’s fresh and bubbly” which ties the concepts together.
Finally, a website for more information is provided to the consumer listening to the radio
advertisement.
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CLIENT: ZeviaTITLE: “I’m Stevie. I’m fresh and bubbly”:30
SFX: “Fresh” by Ethan Sizer (undertone, continuous).
STEVIE: Hi, I’m Stevie (STEE-VEE). I’m cool, healthy, simple, fresh, natural and delicious!
PAUSE (1 sec)
STEVIE: Can you guess what I am? I’m the Bubble Man from Zevia (ZEE-vee-ah)!
PAUSE (1 sec)
STEVIE: Zevia is an all natural soda which contains no sugar and no calories. It’s made with the
botanical sweetener, Stevia (STEE-vee-ah). Zevia has 15 flavors including Cola, Dr. Zevia, and
Mountain Zevia. You can find Zevia at Whole Foods, Kroger and other leading grocery stores.
STEVIE: Just like me, you’ll admit, it's fresh and bubbly!
STEVIE: Visit w-w-w dot z-e-v-i-a dot com for more information.
TAG: Zevia, you’ll admit. It’s fresh and bubbly.
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OTHER
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POINT-OF-SALE ADVERTISEMENT EXPLANATION
For the “other advertisement” for the campaign, a point-of-sale advertisement was
chosen. The advertisement was designed to follow the overall theme of the campaign with the
Zevia logo and the trail of bubbles that follows Zevia in all advertisements. For this
advertisement, a floor display will be laid on the floor of the aisle where Zevia is positioned in
the grocery store. The display will feature the Zevia logo with a trail of bubbles stuck to the floor
of the aisle and will lead the consumer to the location of Zevia on the shelf. This will help Zevia
with product positioning and give the brand an opportunity to stand out amongst its competitors
on the store shelf. A coupon offering $1 off a six pack will also be displayed at this position to
entice the consumer even further to try the Zevia.
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MEETING
MINUTES
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Minutes of 1st Meeting
Date: March 20,2012
Minute Recorder: Luke
Time Began: 5:00 PM.
Time Ended: 6:00 PM
Those in Attendance: Luke, Lorrie, Sonya, Joanne
Those Absent: None
The group outlined early planning, as well as discussing what the budgeting will entail
for the project. We discussed different kinds of diet and all-natural sodas that we had already
heard of but we had not heard of Zevia, and could not name very many equivalents. The group
decided to scout out local all natural soda competition at Safeway, Albertsons, and the Food Co-
op store.
We discussed how we would be able to get feedback from people from other areas about
Zevia but determined it might be too difficult and expensive because of gas costs as well as
logistical problems.
The group agreed that getting the consumer survey designed and approved would be the
most important part to finish first.
We decided to assign certain parts of the research. For the first part the best markets were
assigned to Sonya, competition and products to Lorrie, company info to Joanna, and consumer
research to me.
Next meeting is scheduled for March 31st Saturday at 12:00 PM at Coe. The meeting
adjourned at 6:00 PM; everyone left at the same time.
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Minutes of 2nd Meeting
Date: March 31, 2012
Minute Recorder: Lorrie
Time Began: 12:00
Time Ended: 2:00
Those in Attendance: Lorrie, Sonya, Luke
Those Absent: Joanne
The meeting was held to discuss the research we did on the topics that we assigned to
each other for the plans book from part one on March 20 meeting.
Sonya has questions on the market research analysis material she found in MRI. The
group worked together to determine who the target audience would be.
Luke came prepared with the survey written from his research on the consumer. We spent
quite a bit of time discussing the survey and making sure we had the most pertinent questions on
it to submit for approval. We made several revisions and Luke committed to revising it and
having it to everyone by the evening so he could have it approved by Cindy. The group wants to
start surveying the week of April 1 if possible.
Lorrie shared all the research she came up with on her portion for the product and
competition analysis. Her product analysis was complete with a few revisions to be made. She
needs some information from the survey to be able to complete the product analysis on the
targets usage of the product.
Joanna was having difficulties in finding company information on Zevia since its website
was very limited and they are a private company. Lorrie emailed her and suggested that she get
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with Cindy on how to find better information. She had pretty limited information and need to
expand more on its background if possible.
Meeting #3 will be held on Thursday, April 5 at 5 in the Library. Lorrie emailed Joanna
to let her know the outcome of the meeting and when we are meeting again.
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Minutes for 3rd meeting
Date: April 5, 2012
Minute Recorder: Joanne
Time Began: 5:00PM
Time Ended: 5:50PM
Those in Attendance: Luke, Joanne, Sonya, and Lorrie
Those Absent: None
The group discussed the writing portion of the project and the direction the group
intended to take with the target audience, advertisements, etc.
The group spoke more about the survey and when/where to send it out to receive the best
results, including trying to find surveyors outside of the Wyoming area because our target
audience will be living in Washington, California, and Colorado.
For the next meeting, the group decided that papers would be finished and editing would
begin.
Next meeting is scheduled for April 7, 2012 at 12:00pm.
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Minutes of 4th Meeting
Date: April 10, 2012
Minute Recorder: Sonya
Time Began: 5:10 P.M.
Time Ended: 6:50 P.M.
Those in Attendance: Lorrie, Sonya, Luke, Joanna
Those Absent: None
Today we talked about problems and opportunities for the brand. We talked about how
most of the survey users did not think soda pop could ever be healthy. Another problem we listed
for Zevia is its price is much higher than normal soda and even some of its all natural
competitors.
The group also talked about various objectives as well as opportunities. We decided that
using coupons for Zevia would be a very good opportunity to offset the premium price. Another
opportunity listed was using blogs to reach out nationally at a low cost.
For our communication objectives, the group said generating exposure of the brand was
of utmost importance. We need Zevia’s image to be enhanced and have people think of it as a
healthy alternative to existing sodas and all natural competition.
In terms of creative objectives, Joanna brainstormed “Stevie the Bubbleman.” The name
is derived from Zevia’s flavoring, Stevia. The Bubbleman would be used so people could
remember Zevia and talk about it. If people remembered Stevie, they would probably remember
the brand better.
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The group decided on using a YouTube video, a bubble man direct mail coupon deal, an
outdoor bus ad, and a web banner ad. We also checked out the R2-D2 standup at the Union for
possible ideas for a Stevie display. The meeting adjourned at 6:50 P.M.
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