Marketing Report

Marketing and Integrated Marketing

Challenges

The UK Viteez Marketing Report For Coca Cola

   

January 2013        

                                                                                                                                                                                                     

by Cynthia Newman 20842619

Tutor: Phil Mutter

Module: G107722

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Contents

1. Abstract 4

2. Introduction 5

3. Methodology 6

4. Results / Findings 7

5. Discussion 9

5.1 Popularity Of Energy Drinks 9

5.2 Energy Drinks and Children 9

5.3 Energy Drinks, Sugar, Obesity 10

5.4 Energy Drinks and the Younger Market 11

5.5 Energy Drinks and ADHD / ADD 11

5.6 How It Works 12

5.7 Target Audience / Proposal 12

5.8 Parents Using Energy Drinks ADHD 13

5.9 What Makes ‘Viteez’ Different? 14

5.10 Branding 16

5.11 Packaging 18

5.12 Price 18

5.13 Place 19

5.14 Public Relations 19

5.15 Advertising 20

5.16 Promotion 20

6. Conclusion 23

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Illustrations Illustration 1 Questionnaire 6 Illustration 2 Table - Results From Question 3 7

Illustration 3 Pie Chart – Results From Question 4 7 Illustration 4 Boy Drinking Red Bull 9 Illustration 5 Main Competitors 14 Illustration 6 Viteez Logo 15

Illustration 7 Viteez Brand Characters / Ambassadors 16

Illustration 8 Packaging 18 Illustration 9 12-Month Calendar 21

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1. ABSTRACT This report aims to present the marketing objectives for a new energy drink

made by Coca Cola.

It will outline a 12-month Integrated Marketing Communications Strategy that

will promote the drink to a targeted audience consisting of both consumers

and customers.

The report will display both primary and secondary research in support of its

recommendations.

It will conclude with the outcomes as well as recommendations for future

consideration.

     

 

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   2. INTRODUCTION

This report will seek to outline the marketing objectives for Coca Cola for their

new product, an energy drink aimed at the younger market, named Viteez.

The report will create an Integrated Marketing Communication Strategy, and

in doing so identify the audience targeted and the rationale for this. It will then

detail the marketing strategy for the campaign including the 4 P’s (Price,

Product, Promotion and Place).

The aims and objectives of this report, is to provide the reader with

information of the direction that the company will be going in, with regards to

the marketing branding and promotion of the product.

The methods of enquiry used are both primary and secondary research,

which the report uses to validate what it proposes to do. However, it does

have limitations in that due to time constraints, the primary research market

group was not as large as would have been preferred, as only covers a small

segment of the UK i.e. the South.

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3. METHODOLOGY

Primary research was collected from 20 friends, and ‘friends of friends’ of the

author using a ‘tick box’ questionnaire.

They were carefully selected as they all have children that are within the age

group of the audience targeted by ‘Viteez’ energy drink, that being age 3-7

years of age.

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4. RESULTS / FINDINGS

Ten couples (i.e. 10 males, 10 females) with children between the ages 3 and

7 years old, were questioned with the questionnaire below:

Illustration 1 – Questionnaire

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Illustration 2 – Results of Question 3

Illustration 3 – Results of Question 4

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5. DISCUSSION

5.1 Popularity of Energy Drinks

The use of energy drinks has increased in recent years and is a highly

competitive market. More people are using them as a quick ‘pick-me-up’

during the day. These beverages, which are intended to energise the

consumer, are known to aid alertness. The drinks usually contain caffeine or

taurine in addition to herbal ingredients, such as ginseng, and various

vitamins and minerals. (Coca Cola Company 2012)

5.2 Energy Dinks and Children

“The Food Standards Agency recommend that children should only consume

in moderation drinks with high levels of caffeine” NHS Choices (2011)

It is widely believed that children should avoid energy drinks due to the levels

of caffeine contained in them. Researchers have argued that energy drinks

also have an unusually high level of sugar, which increases the risk of obesity,

and that the acidity can damage teeth enamel. (NHS Choices 2011)

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5.3 Energy Drinks, Sugar and links to Obesity

Already, 25% of boys and 33% of girls in the UK, between aged 2-19yrs are

overweight or obese (Weight Loss Resources 2011) Direct costs to the NHS

caused by obesity are estimated at £4.2 billion per year (DOH 2011)

Furthermore, the number of under 5’s suffering from childhood obesity

worldwide is a staggering 22 million (WHO 2011) There is therefore a fear that

as these drinks contain high levels of sugar, which increases the risk of

obesity and tooth decay, that the continued use of energy drinks by children

could contribute to these problems.

Illustration 4 – A Boy Drinking Red Bull (ref: The Independent 2011)

Among the energy brands highlighted in the report were Red Bull, Monster

and Rockstar. As a result, researchers have condemned advertisers for

aiming at children in adverts. For example, the tagline “Red Bull gives you

wings” has been critisised because of the appeal to children, as it suggests to

a child, drinking Red Bull will make you feel like you can fly.

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5.4 The Dilemma of Energy Drinks and the Younger Market

So, here lies the dilemma, the selling/targeting of energy drinks to children

appears to be unethical in the eyes of the majority of society. However, there

is a group of children, to which research has shown, energy drinks can do

more good than harm.

5.5 Energy Drinks and ADHD / ADD

Attention deficit hyperactivity disorder (ADHD) is a group of behavioural

symptoms that include inattentiveness, hyperactivity and impulsiveness.

Attention deficit disorder (ADD) is a sub-type of ADHD. (NHS 2012)

Diagnosis generally happens between the ages of 3-7yrs old.

Research shows that caffeine is a mild CNS stimulant that can be used with

ADHD children, teens, and adults, if used purposefully and in moderation. All

stimulants are vaso-dilators, meaning that they allow the blood vessels to

increase in size and increase the blood flow in the brain. One of the primary

physiological problems causing ADHD seems to be a lack of blood flow to

certain regions of the brain, and stimulants help to improve blood flow and

reduce symptoms caused by this problem, at least temporarily. (ADD ADHD

Information Library 2012)

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Livestrong’s article further states, “If you or your child has been diagnosed

with ADHD, you may be looking for an alternative treatment to drugs. While it

seems a bit counter-intuitive―after all, people with ADHD have more than

enough hyperactive energy, while coffee drinkers often want more of

it―caffeine is being touted as an effective treatment for ADHD.” (2010)

5.6 How It Works

Caffeine is a central nervous system stimulant that reduces blood flow to the

brain and affects the release of dopamine, a neurotransmitter that helps

people focus. According to the ADHD Information Library, a caffeine-and-

protein treatment is effective for kids, teens and adults with ADHD.

(Livestrong 2010)

5.7 Target Audience / Proposal

Taking this research, and that of many others, into account, the proposal for

Viteez is to primarily target children with ADHD, and secondly the parents of

those children, as it will benefit both. Working as a relaxant for these children,

we aim to champion the cause of Viteez and its benefit to these potential

customers (parents) and consumers (children). The tertiary

audience would be anyone else outside of these groups, who feel they would

benefit from our product, who would use Viteez as an energy booster,

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but with the added benefit of being an all round healthier option to other

energy drinks.

5.8 Parents Already Using Energy Drinks To Treat ADHD

Whilst undertaking research, the author of this report came across a parent

who was actively looking for a suitable energy drink for her child, who was

diagnosed with ADHD. She said she had used energy drinks for her children

before, and preferred them to the medication that was suggested for their

treatment.

Quote “I'm looking for the same thing.... a caffeinated drink that my son will

like to drink in the mornings.... here's the thing most people don't

understand.... my son is definitely ADHD (like his 16 yr old sister) and

although my daughter was put on medication for her ADHD it wasn't until she

was much older because I was extremely hesitant putting her on meds at

4,5,6yrs old etc.... BUT one thing that semi-worked for her when she was

young was mt. dew....

the thing people don't understand about ADD/ADHD meds is THEY ARE

stimulants!!!!!! you'd think "why would you put an already hyperactive kid on a

stimulant"??? it's because kids with ADD/ADHD need a part of their brain to

be "woken up" by this stimulant... caffeine actually has the opposite effect on

these kids and makes them function in a more "normal" way... (ask any

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psychiatrist) so it's almost laughable that people are so shocked and

disgusted by others giving their kids caffeine for ADD!!!

I wish there was a tasteless powder, but my only option is some form of soda

or energy drink.” (Answers.Yahoo.com 2009)

5.9 Competitors & What Makes Viteez Different?

It is difficult to define who the main competitors will be for Viteez, as there are

no products in the UK that do what we propose to do. There are pure energy

drinks i.e. Monster, Red Bull etc., that provide and energy boost, and there

are drinks that are based on vitamin provision i.e. pure juice made by

mainstream juice providers, and well as specific juices targeted at children

such as Jungle Juice, but there are none that focus on giving both.

Illustration 5 – Main Competitors (Ref: Fourwinds10.com 2012)

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What makes Viteez different from other energy drinks is that it will have a

contained amount of caffeine appropriate for the safe consumption of a child,

along with a fruit juice base, which will aid towards his/her 5-a-day. It therefore

becomes a healthy option. The ingredients and amounts will be displayed on

the packaging. “Our policy is to provide nutrition labeling information for all of

our products” (Coca Cola Company 2012) so parents will be aware of the

content of vitamins, minerals and protein in each drink.

Fruit or vegetable juice counts towards your 5-a-day (NHS Choices 2010)

The 5-a-day campaign encourages people to eat a minimum of five portions of

fruit or vegetables every day. (Family Learning 2010] Fruit and vegetables

contain vitamins and minerals that our body requires to maintain good health

(Health Food Guide 2011) these will be in Viteez, this is what makes it

different from any other energy drink currently on the market.

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The name Viteez is a combination of two words

Vit – Vitamins

Eez – an alternate spelling from the word ease or easy

Viteez will come in the following flavours:

Apple; Banana; Citrus; Carrot and Tomato

5.10 Branding

Illustration 6 – Viteez Logo

5.10.1 Name

Five names were brought to the table: Booster; Feelgood; Fruitbuzz; Hype

and Viteez. In our questionnaire 20 parents where asked what there preferred

choice of name was, which resulted in a majority choosing Viteez. The name

Viteez was chosen, as it is original, distinctive, appropriate, short and easy to

say and remember.

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5.10.2 Logo

The logo uses Apple Casual font as it relaxed and scripted. The colours

chosen are vibrant as children like bright colours, they are also representative

of what are perceived as ‘healthy colours’ those being green and orange.

Each flavour will have a brand character or brand ambassador associated to

it:

Cameron the Carrot

Luke the Lemon (Citrus)

Tommy the Tomato

Anna the Apple

Bob the Banana

Illustration 7 – Brand Characters / Ambassadors

5.10.3 Brand Characters

All the characters live in a place called Vitaland, which will be shown on the

Website, through mini-books and eventually a 5-minute TV mini series.

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They will play a huge role in the branding, advertising and promoting of the

product, creating huge opportunities for merchandise, and also allow Viteez to

stand out from its potential competitors.

5.10.4 Tagline / Copy

It was desirable that the tagline be simple and catchy, something a 3-year-old

child could repeat, as well as their parent. In addition, a quote that could be

easily translated into an advert or a children’s TV programme. ‘Viteez, Take It

Eeze’ or ‘Take It Ezee with Viteez”

Other options were “Eeze Living” and “Have an Eeze Day”, basically any

saying were ‘easy’ can be changed into ‘Eeze’ – it has legs, i.e. there is room

for expansion.

5.11 Packaging

The packaging has to appeal to the consumer (the Child) and the customer

(the Parent). It therefore has to be bright and colourful so it stands out when

on the shelf. Jefkins states “Packaging has to identify itself on the

supermarket shelf where there is no shop assistant to sell it” (1993)

The packaging will be cartons, to ensure they are child friendly, they will also

 Illustration 8 - Packaging

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come with a straw so the child has options of how to drink it.

5.12 Price

To be in-line with other soft drinks products for children, the energy drinks

market competitors and the volume within each pack, Viteez will come in a

small carton as to be consumed by a child at one time and priced at £0.85; it

will also be available as a 6 pack, priced at £3.00; and also sold as a large

carton which will hold 4 glasses of the juice and priced at £2.40.

However the continued price will ultimately depend on supply and demand

figures, so it may drop depending on how successful the launch of the product

is. However, being part of such a large highly recognisable company, we

envisage that the reputation of Coca Cola will aid in this product being very

successful when it hits the shelf.

5.14 Place

As well as via our online website Viteez will be sold in supermarkets i.e.

Tesos, Asda, Morrisons etc., and in drugstores i.e. Boots, Superdrugs and

Wilkinsons. At a later date, we also hope it will be available in vending

machines, school canteens and sport/leisure centres.

5.15 Public Relations (PR)

We aim to do significant PR, which is imperative, as what we are proposing

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may be deemed as controversial to some, plus, as mentioned earlier,

advertising energy drinks to appeal to children has not previously been well

received according to some research. It is essential that PR be utilised as it is

concerned with creating understanding through knowledge, which in turn

leads to goodwill and reputation; which is inherent throughout the marketing

mix. (Jay 1998)

5.16 Advertising

As well as the traditional above the line advertising – TV, press, radio,

outdoor; we will also utilize below the line advertising, though exhibitions,

direct mail, sales literature, point of sale, merchandise and sponsorships.

(Jefkins 1993)

5.17 Promotion

Promotion will be done through various means: -

1. Visiting schools and raising the awareness of the product to parents,

teachers and children.

2. Via our Website, which also includes games and competitions for the

child to take part in, it will also further engage them with the brand

characters that will all have their individual voices and personalities.

3. Partnership/Sponsorship with TV programs such as ZingZillas and

Rastamouse. As with the Meerkats who sponsor Coronation Street, a

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miniclip of the Viteez characters and drink will be shown prior to the

start of the programme, along with various product placements within

the storyline of the episodes.Also mini books similar to the Mr Men

series, based around the characters as a group of 5 friends having

adventures in Vitaland, which can later be made into a children’s TV

programme.

4. Merchandise – a toy of each brand character, cups, plates, T-Shirts,

bowls, balloons, lunch boxes, school bags, toys/soft toys of the brand

characters (plus stress release toys), jigsaw puzzles, board games etc.

5. PR at Focus groups and Awareness groups on ADHD/ADD to bring

awareness to the benefits of Viteez, and give opportunity to answer

any questions/concerns

6. PR at General Practices and Mother & Child groups

7. Poster and Direct mail in targeted places i.e. schools, chemists,

supermarkets, and primary schools

8. Point of Sale items placed at each location where the product is

available to be purchased, including merchandise mentioned above.

9. Celebrity endorsement by someone who may have experienced ADHD

as a child, and can relate to the condition, as well as someone that is

recognised by the targeted age group. E.g. The group ‘One Direction’

10. Web banners that will direct people to the website for more information

and the opportunity to buy online

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Illustration 9 – 12 –Month Calendar of Viteez Promotion

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CONCLUSION

In conclusion, the integrated marketing communications strategy outlined in

this report is a comprehensive one which the author believes will ensure a

successful launch of the this new energy drink for children. All aspects of the

Marketing Mix need to be adhered to, to ensure a seamless launch, in

particular the Public Relations aspect, as it could be deemed controversial, as

it a) targets Children in Advertising and, b) is being suggested as a treatment

option for children with ADHD.

When advertising to children, in the UK, restrictions exist on ads that 'might

result in harm to children physically, mentally or morally' and on ads

employing methods that 'take advantage of the natural credulity and sense of

loyalty of children'. (Peace Pledge Union 2003) This proposed integrated

marketing communication strategy for Viteez aims to break none of these

rules, so the author believes that as long as the promotion enables both the

consumer and in particular customer, to make an informed choice, and the

previous recommendation of further research with a larger audience is

continued, then the launch of this marketing strategy for Viteez, should prove

to be an effective one that has the end result of customer satisfaction.

2,479 words

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REFERENCES / BIBLIOGRAPHY ADD ADHD INFORATION LIBRARY. (2012). ADHD and Caffeine: a Treatment Option http://newideas.net/adhd/adhd-diet/caffeine  ANSWERS.YAHOO.COM. (2009). Is they an energy drinks that kids can drink?  http://answers.yahoo.com/question/index?qid=20090728092151AAEhdHi [Accessed 9.1.2013] COCA-COLA.COM. (2013). Energy Drinks. http://www.coca-colacompany.com/brands/energy-drinks [Accessed 9.1.2013] DEPARTMENT OF HEALTH. (2011). Obesity. http://www.dh.gov.uk/en/Publichealth/Obesity/index.htm [Accessed 24.3.2011] FAMILY LEARNING. (2010). 5 a Day. http://www.familylearning.org.uk/5-a-day.html [Accessed 10.11.2011] FOURWINDS10.COM. (2012). Energy Drinks Are More Harmful Than You Think. http://www.fourwinds10.net/siterun_data/health/harmful_products/news.php?q=1347462192 HEALTH FOOD GUIDE. (2011). Amazing Health Benefits Of Fruits And Vegetables. http://healthfood-guide.com/healthbenefitsfruitsvegetables.aspx [Accessed 26.05.2011] JAY, R. (1998). The Essential Marketing Sourcebook 2nd Edition. London. Pitman Publishing

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JEFKINS, F. (1993). A First Course In Marketing 2nd Edition. London. DP Publications LIVESTRONG.COM (2010) How To Treat ADHD With Caffeine. http://www.livestrong.com/article/74378-treat-adhd-caffeine/#ixzz2HPyZPudn [Accessed 9.1.2013] NHS CHOICES. (2010). 5 A DAY: what counts? http://www.nhs.uk/Livewell/5ADAY/Pages/Whatcounts.aspx [Accessed 10.11.2010] NHS CHOICES. (2011). Energy Drinks ‘Not Good For Children’ http://www.nhs.uk/news/2011/05May/Pages/energy-drinks-and-children.aspx [Accessed 09.01.2013] NHS UK. (2012). Attention deficit hyperactivity disorder (ADHD). http://www.nhs.uk/conditions/Attention-deficit-hyperactivity-disorder/Pages/Introduction.aspx

PPU.ORG.UK. (2013). Children And Advertising http://www.ppu.org.uk/chidren/advertising_toys_eu.html [Accessed 13.1.2013] STOP SMOKING STAY SLIM. (2011) Childhood Obesity Statistics http://www.stop-smoking-stay-slim.com/childhood-obesity-statistics.html [Accessed 24.3.2011] THE INDEPENDENT. (2011). “Energy Drinks Make Children Fat, Not Fit, Says Study.” http://www.independent.co.uk/life-style/health-and-families/health-news/energy-drinks-make-children-fat-not-fit-says-study-2291085.html [Accessed 9.1.2013] WEIGHT LOSS RESOURCES. (2011). Childhood Obesity. http://weightlossresources.co.uk/children/childhood_obesity.htm [Accessed 24.3.2011]