Rebecca Koch, Melissa Pennington, Cameron Scheetz, Chelsea ThiekenJune 2012

WHAT IS DR PEPPER TEN? Dr Pepper’s first foray into the emerging Mid-Level Calorie Soft Drink category. !

*calorie)level)based)on)the)standard)12)fl)oz)can)

100##Calories#

10##Calories#

0##Calories#

CURRENT COMMUNICATION

POSITIONING For men aged 25-34, Dr Pepper 10 is the best soft drink choice that provides all 23 original flavors & reduced calories, while being more satisfying than diet.!

BRAND SKEW Dr. Pepper 10 is geared toward towards the “macho man” and is sold as a healthier soft drink alternative that, unlike diet drinks, men won’t feel ashamed of or self-conscious for drinking.

• Dr Pepper was created by pharmacist Charles Alderton and first sold at a drug store in Waco, TX by Wade Morrison. The product was named after the father of Morrison’s former love interest.

• Dr Pepper brand history• Became part of Dr Pepper Snapple Group (DPSG) in 2008• Today, DPSG is composed of over 50 brands.

BACKGROUND

Coca%Cola'Co.'41.9%'

Coca%Cola'Co.'41.9%'

PepsiCo'28.5%'

DPSG'16.7%'

MARKET SHARE Dr Pepper is the company’s most heavily supported brand, but they pride themselves in their wide array of flavored sodas.

Despite an overall decrease in volume for CSD sales, DPSG remained stable while top competitors like Pepsi and Coke saw deceases in market share.

Interestingly, DPSG has a larger market share in the Diet Carbonated Soft Drink category, with 18.2%, still slightly trailing behind Coca-Cola and PepsiCo.

Dr Pepper is most innovative company of the year in the CSD category, according to Mintel, for creating additions to the Mid-level Calorie Soft Drink category. In test markets now are four other Ten versions of 7up, A&W, Canada Dry and Sunkist.

PERCEPTUAL MAP

MOST DESIRABLE!FLAVOR!

LEAST DESIRABLE FLAVOR!

DIET/ZERO CALORIE!

FULL CALORIE!

MID-LEVEL CALORIE SOFT DRINKS

• Include that carbonated soft drink sales have been declining for 7 years (sourced from an AdAge)

• CSD companies noted that concerns with flavor AND artificial sweeteners were driving consumers away from diet drinks.

• Products like Coke Zero, Pepsi Max and Pepsi Next were created to take advantage of this trend, offering consumers a healthier soda alternative that still provided a full flavor. This innovative middle ground between diet and regular sodas became classified as “Mid-Level Calorie” Soft Drinks.

• Taste and perceived health advantages are drivers in this relatively new category of soft drinks.

• DPSG hopes to rejuvenate the carbonated beverage industry through mid-level calorie innovation

DR PEPPER TEN SALES Dr Pepper spent about $10 million in additional marketing on the Dr Pepper Ten launch, which gained notoriety for advertisements that promoted the drink as a diet soda for men. The other flavors will be marketed to a broader audience, targeting men and women ages 25 to 49, to keep the male-centric advertising with the flagship drink. (Wall Street Journal)

 Facebook Poll" 1-on-1 Consumer

Interviews" On-Campus Blind

Taste Test"

OUR RESEARCH

BRAND PERCEPTION

Dr Pepper Ten was released on 10/11/11, and as more consumers witnessed the ad and it became more well-known, brand perception began to decline. This graph is representative of brand perception of Dr Pepper itself, which shows that the Ten messaging is affecting the company’s other flavors and positioning.

Only one week is shown because this was during the explosive launch of Dr Pepper Ten in this past October. It shows that brand perception can quickly change, and that to reverse the trend, we recommend that Dr Pepper Ten move away from the sexual and gender stereotyping unique to the Dr Pepper Ten messaging.

TO “IT’S NOT FOR WOMEN” CAMPAIGN ONLINE FEEDBACK

55%!40%!

PositiveNeutral

Negative

• Dr Pepper has upset some female consumers with a new ad campaign

•• The campaign features “manly” themes,

videos, games, commercial spots and an app dubbed ”Dr Pepper Ten Man’ments” which include “Thou shalt not end a comment with = )” and ”Thou shall not post pics of your outfit.”

•• We used Social Radar to analyze

conversations around Dr Pepper online.•• Overall conversations around Dr Pepper

are currently 55% negative. •• The phrase “not for women” is appearing

in 14% of all Dr Pepper conversations and is 68% negative. The term “sexist” appears in 4% of all posts and is 92% negative.

MARKETING CHALLENGES Targeting the male demographic without perpetuating potentially offensive

sexual stereotypes or purely cannibalizing the brand

MODEST MACHOS These are men who, after their young & careless years, are finally beginning to settle down. While general health and well-being may not have been a concern before, these men are realizing that they now need to put some thought into their diets and take care of their bodies.

They are growing accustomed to a more regimented daily schedule – their families and careers now take top priority over hanging out with their buds and watching the game. Despite all of this, they still like to have a good time and look-forward to unwinding on the weekends with their friends.

Aaron (left) – 26 years old, pursuing a master’s degree. Works as a freelance web consultant, primarily gets job opportunities through LinkedIn. Jogs every day. Does not drink pop due to its high calories or artificial sweeteners.

Tim (right) -27 years old. Completed his college degree in PA and is working his way up through Pepsi Inc. With his recent engagement to long-time girlfriend, Tim is continuing to adjust to post-grad life while enjoying his job and relationship successes. In addition to his professional and personal success, Tim is also shifting away from carefree college lifestyles and paying more attention to what he wears, spends, and what he eats. While he enjoys soda, he doesn’t really like diet but wants something in between- Thus Dr Pepper 10.

Aaron, 26! Tim, 27!

MODEST MACHOS

STRATEGIC APPROACH Move away from sexual/gender stereotypes while still targeting our male demographic.

MARKETING GOAL

recruit!

regain!

awareness!

change perceptions!

COMMUNICATION GOAL

Recruit. We want to raise awareness and trial for the product, which many consumers still seem to be unfamiliar with.

Regain. As with all Mid-Level Calorie Soft Drinks, we want to regain the CSD-drinking audience who turned away from regular sodas due to health concerns and diet sodas because of their flavor.

THE BIG IDEA

The Mid-Level Calorie Soft Drink offers the flavor of a regular soda, but with fewer calories.

CRITICAL INSIGHT

Consumers don’t want calories to have to influence their soft drink choice.

MAKE THE MOST OF YOUR 1O.

TELEVISION

TELEVISION

DIGITAL

Dr Pepper Ten reminds you to take a ten-minute break in however many time intervals users choose. Download app and set a time for reminder to take a ten-minute break. GPS shows you things around you to do (parks, stores, etc.). Suggest purchasing locations for Dr Pepper Ten.

OUT OF HOMEDue to the nature of the previous advertisements, they can be seen nationally by our target. So, for our Out of Home advertising, we decided to select a number of specific areas to concentrate our campaign.

Phoenix!

Denver!

Omaha!

Des Moines! Chicago!

Raleigh!Indianapolis!

Columbus!

Pittsburgh!

Austin!

As shown on the map, we selected 10 recommended spot markets across the U.S. These cities were chosen by looking at where Dr Pepper originally tested its Dr Pepper Ten product and cross-referencing that with Forbes' list of the top cities for young professionals and MRI data for Dr Pepper drinkers and Diet Soda drinkers.

SPORTS & CONCERT ARENASSponsor clocks, televisions, tri-face billboards and kiosk side displays in major concert and sports venues in each of our ten markets.

BILLBOARD

WHAT YOU CAN DO WITH 1O

MAKE THE MOST OF YOUR 1O.

FOUN-TENs

IN-FLIGHT WIFIMRI research shows that our target travels both for leisure and business, so why not reach them in the sky? We recommend sponsoring the first 10 minutes of in-flight WiFi for United Airlines. The sign-in page will have Dr Pepper Ten logos and images, feature a 15—30second advertisement and take the user to a Dr Pepper Ten landing page.

Because our working MM’s most likely have city jobs, we want to give them a reason to get out and walk outside during their lunch breaks or while enjoying time outside on the weekend. We will sponsor various foun-tens that are similar to water fountains but with Dr Pepper 10 inside.

SPONSORSHIPS SXSW

Sponsor the back cover of the program guide for the entire 10-day film/music/interactive festival in Austin, TXDirect festival-goers to our TENt for samples (more about TENts to be explained on future slide)

The concept here is that you can light a lighter with one digit and sway along to a sappy song at a Nickelback concert, or you can regain your coolness points by using your 10 (fingers/digits) to open up a bottle of Dr Pepper Ten.

South By Southwest is a ten-day festival held in the spring in Austin, TX that is a celebration of music, film, and interactive media. Because it ties in so well with our market’s interests, the event would be the perfect opportunity to promote our product. Along with setting up a promotional tent, which we'll explain shortly, we will also run a one page print ad in the festival program that will show a relevant creative execution (like this one) and gives festival-goers directions to our promotional tent.

ESPN TOP TEN SPONSORSHIP

Sports Center Top 10 Plays of the Week will reach our sports-savvy Modest Machos.

PR & PROMO

Summer, major outdoor events such as film festivals, concerts, etc. in Chicago and Austin (South by Southwest, Austin Film Festival, Lollapalooza, etc).• 4 bowling lanes (10 PINS!)• Temperature control• Bar with Dr Pepper Ten, DrPT slushies/floats, popsicles• Branded mini fans to remind festival-goers of Dr Pepper Ten’s refreshing

taste• TVs playing our ads• $100 prize for best bowling score all day

THE $1O CHALLENGE One man’s 1O is another man’s treasure

Based off of the popular game “Bigger and Better”

"The $10 Challenge." Through the use of social media, we will recruit up to ten people to compete for the top prize.

Selected contenders will be directed to a central location where they will be handed a ten dollar bill and given three hours to "make the most of their ten," through buying, selling, trading, and bartering. At the end of the allotted time, a vote will determine the winner. The whole process will be recorded and edited, so it can be posted onto Youtube as a viral campaign for Dr Pepper Ten.

The $10 Challenge will take place in the early spring in Chicago, IL, Indianapolis, IN, andAustin, TX. In the weeks leading up to the event, Dr Pepper's official website and social media will be used to promote the challenge and will direct those interested to a specific page where they can fill out an entry form.

After an information check of all applicants, 10 lucky competitors (per city) will be chosen at random. The event will start at specific locations in each city and have strict timelines for when the competitors should arrive, when the challenge officially starts, and when they need to return to the starting location (all those

who arrive past the challenge's deadline will be disqualified).

When considering the budget for this event, money was allotted to pay for brand representatives to be present to officiate the event, to follow and document each team member during the challenge, and to be the official who will vote for the winners.

In each city, a 1st, 2nd, and 3rd place winner will be selected - 1st place will win an all-expenses-paid trip for 2 to "South by Southwest" including 2 Platinum Passes (which allow pass-holder into every part of the festival - music, film, and interactive media), 2nd place will receive a certificate for $100 credit on ticketmaster.com, and 3rd place will receive a ten-month supply of Dr Pepper Ten.

Prior to the start of the challenge, every competitor will be given a shirt to wear with the Dr Pepper Ten logo on it to wear during the challenge, and to keep afterwards. Using the video footage captured during the event, a highlight video will be put together for each of the cities and then uploaded onto Youtube and the Dr Pepper website. Social media will then be used to virally spread these videos across the internet.

FLIGHTING SCHEDULE

We recommend beginning the campaign in September of 2012 and running it through August of 2013. This will help Dr Pepper Ten concretely establish itself in consumers’ minds before the peak purchasing season for carbonated soft drinks, which is typically summertime.

We recommend flighting television heavily in September to kick off the campaign, and then move to more moderate flighting though October and November to tie in with the football season. In February, we suggest sponsoring a :30s Super Bowl ad. Dr Pepper Ten has the unique personality to pull off humorous messaging during this high-traffic sporting event and the payoff, in impressions, will be worth the expense. TV is also flighted more moderately through spring in anticipation of our peak season (summer), during which, we will move to more heavy communication again.

Specific television shows were chosen based on the portion of the total viewership that Modest Machos occupied. For instance, their heavier usage of late night television (via MRI) and high ratings of comedy shows pointed us toward advertising during Conan on TBS. On DIY Network, we selected shows such as Million Dollar Contractor and Man Caves. For TNT and CBS College Sports, we anticipated the scheduling of important sporting games priced the advertising from there.

Digital will be heavily prevalent all year long due to the target’s high level of connectivity. The low cost per impression makes digital not only budget-friendly, but also highly effective for Modest Machos.

Print was used both to supplement lighter television flighting and to anticipate the arrival of heavier carbonated soft drink consumption periods.

Billboards were flighted based on seasonality, and the Foun-TENs mimic this same flighting.

In-flight wifi is recommended to be flighted toward the latter half of Q1 and throughout all of Q2. These are the busiest months for airplane travel.

We suggest advertising in concert and sports arenas in each of the 10 markets mentioned previously. The pricing reflects branding of a tri-face billboard, kiosk side display, the arena clock and television. We moderately flighted this all year long because these venues are constantly in use, whether it be for sporting events, concerts, or other activities.

November is well known for its football audience, and this is why the ESPN Sports Center sponsorship was chosen to occur this month.

The Dr Pepper TENts were flighted in summer months (for events like Lollapalooza in Chicago), as well as October to include the Austin Film Festival and March to include South by Southwest (SXSW).

FLIGHTING EXPLAINED

80% MEDIA!

10% PRODUCTION!

5% PR/PROMOTIONS!

3% CONTINGENCY!

2% EVALUATION!

BUDGET BREAKDOWN

48% TV!

18% DIGITAL! 8% PRINT!

26% OUT OF HOME!

ROI• We chose to determine our ROI by viewing the number of “Take Ten”

app downloads because this is a new service. We can therefore assume that each download is a result of the “Make the Most of your 10” campaign and use this information to estimate those targeted.

• Since our most important task in creating this campaign was to change people’s attitudes and perceptions of Dr Pepper Ten, we will survey our target before, during and after the campaign. From this, we can easily see if there was a shift in brand perception since the “It’s Not for Women” campaign.

EFFECTIVENESS“MAKE THE MOST OF YOUR 1O” IS:

• Integrated• Matches target’s lifestyle and psychographics• Highlights strengths of Dr Pepper Ten• Keeps a conversational tone• Relatable• A positive introduction of the mid-level calorie category