Dr Pepper

Dr Pepper Proposal

SPM Agency

Alison Anselmo Jessica Stephens Davis Son Rob Turdiyev

Table of Contents Introduction………………………………………………………... 2-3 Brand Audit……………………………………………………….. 3-12 Brand Positioning………………………………………….. 3 Brand Equity……………………………………………….. 3-7 Awareness………………………………………….. 4 Preference……………………………………….......4 Usage………………………………………………..4-5 Value……………………………………………….. 5 Relevance…………………………………………... 5 Differentiation………………………………............ 5-6 Vitality………………………………………........... 6 Emotional connection…………………………….... 6 Loyalty………………………………………........... 6-7 Previous Campaign/Agency of Record..…………………… 7-11 Brand Audit Overview……………………………... 11-12 Cultural Brief……………………………………………………… 12-15 Myth treatment……………………………………………... 12 Myth market………………………………………………... 12-13 Cultural contradiction…………………………………….... 13-14 Populist world/authenticity………………………………… 14-15 Charismatic aesthetic………………………………………. 15 Dr Pepper Campaign……………………………………………… 15-28 Tagline……………………………………………………... 16 Packaging………………………………………………….. 16 Campaign Particulars………………………………………. 16-18 Goals…………………………………………….................. 18 Budget……………………………………………………… 18 Print Venues………………………………………………... 18-19 “Life in a Can” ……………………………………. 18-19 TV Spot…………………………………………………….. 20-26 “Remember” ……………………………………… 20-26 Other Marketing ………………………………………........ 27-28 References…………………………………………………………. 29

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Introduction The taste of Dr Pepper is unmatched. Its 23 delicious flavors have withstood the test of time, as it’s well-known to be the oldest soft drink in the world. But we feel Dr Pepper tells a story that goes well beyond the qualities of great taste and tradition…

The fight in trying to take a firm hold of prospective customers is a never-ending, uphill battle in any industry. This is a fight that takes place in the product market. It involves reaching targets based on market research, and is in competition with other big-name companies who are fighting for the same product market using more or less the same research. The flaw in this system of reaching potential customers is that it denies what people feel is most important about the things they buy: the story they become a part of when they use, consume, and talk about the product. When this most important aspect of understanding consumers is considered, you are considering a Myth Market.

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The fight for a Myth Market is one that’s not really a fight at all. If the story being told is not being told by anyone else, you own that space. SPM Agency has found the space where Dr Pepper belongs. We have found its Myth Market.

This proposal outlines the foundation in which Dr Pepper’s Myth exists. We will cover the marketing strategies that are currently in place, establish the cultural brief in which the core of Dr Pepper’s story is set, and propose the advertising campaign that most effectively executes that story.

I. Brand Audit

Brand Positioning The U.S. beverage market is a highly competitive and crowded field. In order to command market share, a brand must be able to differentiate itself from its competitors. To make this differentiation, Dr Pepper has

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positioned itself as “the world’s unique soft drink” since it is comprised of 23 flavors. Its current slogan is “One Taste and You Get It” (Dr Pepper Snapple Group, 2008). Dr Pepper currently controls 15% of sales volume in the beverage market and has a market value of $6.5 billion (Ody, 2008). It has a deep-rooted following in the South because it first started as a regional Texas soft drink.

Brand Equity A brand is judged by many different facets that determine the value of the product, which range from the loyalty of consumers to the awareness of the product in the marketplace. All of these things combine to give the market a set value on a brand. We have analyzed these items below in order to assess Dr Pepper.

Awareness: Dr Pepper currently holds the place of 3rd in market share for the U.S. They fall behind major players Coca-Cola and Pepsi which

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account for 74% of the market. Dr Pepper’s Brand Equity Index is 162 which is 1.6 times the normal rating (Young, 2008).

Preference: With consumers embracing the current health trends, Diet Dr Pepper was named one of the top 10 soft drinks in 2002 due to health conscious attitudes. This market is predicted to continue its growth world wide. According to MarketLineResearch, “The global diet food and drink market is forecasted to reach $112 billion by 2009.’Light' versions of snacks and desserts have experienced strong growth. It is estimated that about 40% of consumers in the US are conscious of a product's calorie and carbohydrate content.” As well as Diet Dr Pepper’s growth among users, Dr Pepper is one of the few non-diet soda brands to gain market share in 2007. In 2008, net sales were $1.56 billion for the second quarter of 2008, compared to $1.54 billion for the same period of 2007 (MarketLine, 2008).

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Usage: Dr Pepper Snapple, which is based in Plano, Texas, generates 89% of its revenues from the U.S. market and 80% of its sales volume from sodas (Ody, 2008). According to Mediamark Research, 50% of all Dr Pepper consumers are male and 50% are female. 18.3% of users graduated college, 30.7% of users attended college, 31.7% of users graduated high school and 19.3% did not graduate high school. The majority of Dr Pepper consumers are 25-34 and most are employed full time. The majority of users are white with this subgroup comprising 81.8% of all users, followed by African-Americans and Latinos. Dr Pepper has seen its growth rise 5% annually since 1987 (Young, 2008).

Value: Dr Pepper has a market value of $6.5 billion. Its revenue in 2007, was $5.7 billion, this represents an increase of 21% for the year (Ody, 2008). Factors that have been attributed to this growth include Dr Pepper Snapple Group’s attractive product mix which offers flavored carbonated and non-carbonated beverages like tea juice and juice drinks. “The

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company is now strategically focused on its growth strategy, which includes expanding distribution and penetration of its brands throughout North America. While the overall CSD market is declining in the US—what Young refers to as “cola fatigue”—the flavored segment continues to grow, which puts Dr Pepper Snapple in an enviable position in the everchallenging soft drink market (Young, 2008).

Relevance: With the growing trends in the food industry towards health concerns and targeting a growing Hispanic audience. Dr Pepper lists as its goals for 2008 to “expand Diet Dr Pepper growth and develop coastal and Hispanic markets” (Young, 2008).

Differentiation: Dr Pepper prides itself on their unique blend of 23 flavors that make up each can of soda. They claim a taste that can’t be identified or matched by any other soft drink company. They also pride themselves on offering new and inventive products like their new energy drink, Venom and Snapple’s antioxidant water. The Dr Pepper Snapple

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group is the number one flavored carbonated beverage company and with products like Diet Crush and Diet 7-Up they have seen their diet flavored beverages grow as consumers get tired of diet colas and water (Young, 2008).

Vitality: Dr Pepper is the oldest soft drink available in the U.S. It was first sold in 1885 in Morrison’s Old Corner Drug Store in Waco, Texas and was introduced to millions in the 1904 St. Louis World’s Fair (Dr Pepper Snapple Group, 2008). Dr Pepper continues to see its brand grow. It has a current future purchase intent of 41% among consumers, a growth of 9 points in over a year (Young, 2008).

Emotional Connection: Dr Pepper in recent campaigns has tried to make an emotional connection to consumers through its link to music. Its 2005 ads for Diet Cherry Vanilla Dr Pepper featured The Muppets “Mah Na Mah Na”\and Queen- I Want it All. In 2008 they used the Cheers Theme Song, “Where Everybody Knows Your Name” (Zmuda, 2008).

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Loyalty: Dr Pepper is the oldest major seller of soft drinks and has a strong following in the South. 41.2% of Dr Pepper’s users live in the South and see it as a drink that represents them. Texas, Oklahoma, Louisiana, Arkansas and Missouri, average around 400 per caps [8-ounce servings per capita per year] while the Northeast and West Coast per caps are down around 9 (BeverageWorld). In the 2008 soft-drink brand keys customer loyalty engagement index Dr Pepper ranked 5th behind Pepsi, Mt. Dew, Coca-Cola, and 7-Up. Diet Dr Pepper in the same index was ranked 4th behind Diet Pepsi, Diet Coke, and Diet 7-Up (Brand Keys, 2008).

Current Campaigns

Television Dr Pepper’s current television campaign is titled, “Trust me, I’m a Doctor.” The campaign so far consists of two different television spots.

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The first one features Dr. J (Julius Erving) who is tossing ice cubes into a glass much like one would do if they were to throw a basketball. He tells viewers if they drink Dr Pepper slowly they will better experience its 23 flavors. The second spot features famous TV doctor, Dr. Frasier Crane on his radio station telling listeners to drink it slowly to experience the 23 flavors (Young, 2008).

Radio Dr Pepper’s radio ad consists of the following two spots. The first one is titled, “Explorer Man” – where a man is put in the wilderness with minimal supplies and a can of Dr Pepper. It goes on to say that Dr Pepper’s “flavor goes deep.” The narrator says that “with 23 flavors in every sip means there is more to explore.”

In the “Home Sweet Home” spot sweets welcome Diet Dr Pepper to the dessert aisle. The tagline is “So rich and decadent it belongs in the dessert aisle” (Young, 2008).

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Print The print ads that Dr Pepper is currently running are for the Diet Dr Pepper product and it is centered on the tagline, “Nothing Diet About It.” One of the ads features a smiling woman with sprinkles on her lips, holding a can of Diet Dr Pepper. The second ad features a line of cupcakes with a can of Diet Dr Pepper in a cupcake paper cup (Young, 2008).

Internet Dr Pepper’s internet advertising mainly focuses on the use of their own website where viewers can engage in a variety of activities. One section focuses on downloads where one can download retro gallery wallpapers, screensavers and can even customize their own wallpaper.

Games

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One of the other main features on their website is interactive games that visitors can play. One game is an action arcade game titled Dr Pepper Speedway Rush a racing game where you pick up Dr Pepper cans along the way for speed and avoid cola cans that slow you down. The second category of games on their website is Sports Arena games. One game is Throw For Dough 3.0 where one throws a football into a moving giant Dr Pepper can. One also must flag down the Dr Pepper salesman who holds the target still for you. The other game, Hangfan— is a football-related word game which guesses are held up by the crowd in the style of hangman. The last category of games is Mind Games. The site features puzzles where you put together pieces to form one of two posters featuring Dr Pepper slogans: “There’s nothing diet about it” and “There’s more to it.” The game, Sweet Swap where you click on various sweets to rotate them into rows of 3 or more and get extra points for aligning cans of Diet Dr Pepper and Dr Pepper Matchcaps where you click on various bottle cap designs to rotate them into rows of 3 or more.

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The site also features a timeline with a big focus on their history right now which shows product and advertising through the years (drpepper.com).

General Promotions

Guns N’ Roses Dr Pepper has also gained a lot of attention for one of their general promotion campaigns. The company promised that if Guns N’ Roses released their new album Chinese Democracy in the year 2008 everyone in America will get a free Dr Pepper. The album has been in the works for over a decade. When Guns N Roses did announce that they would be releasing the record, Dr Pepper posted a link on their website for 24 hours allowing people to register for a coupon for a free Dr Pepper. This has led to some controversy as the website server crashed and Axl Rose has filed a lawsuit against Dr Pepper for using them in a marketing campaign without permission (Cohen, 2008).

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The Dr Pepper Bridesmaid Kelly Gray, a hairdresser from Virginia Beach, put up an auction to select a bridesmaid for her wedding on April 19, 2008. Dr Pepper placed the highest bid for the auction at $5,700, and went further by offering her $10,000 and supplying all of the beverages for her wedding. This was revealed to her and the American public on the popular morning show, “Good Morning America.” Dr Pepper Snapple told Gray it would launch a Web site to find her a bridesmaid or provide a surprise guest to fill the slot (Hamptonroads.com).

The Montauk Monster

The Montauk Monster was an unidentified carcass of a beast that washed up on the shores of Montauk, New York in July 2008. There was intense buzz in the media and on the internet surrounding the mystery of this creature which was never identified. Dr Pepper took advantage of this intriguing story by placing a bounty on this creature as part of a

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marketing strategy. The Monster was never accurately identified nor was it retrieved for the offered bounty (cryptomundo.com).

Agency of Record Dr Pepper Snapple Group had been with WPP Group’s Young & Rubicam for almost 40 years. The account was up for grabs in March 2008 (unbeknownst to Y&R). Cliff Freeman, Y&R, Droga5, and Deutsch LA bid for the account, where it finally went to Deutsch LA (Zmuda, 2008).

Brand Audit Overview Dr Pepper’s current advertising is all over the place. Its marketing efforts are spread too thin, and are not telling a story its market can appreciate. The TV spots feature a play on the word “Doctor” by using different celebrity “doctors” (Dr. Frasier, Dr. J. The “Doctor” characters are recognizable parts of popular culture, but each reach out to different audiences. The ads don’t really give people a personal connection with the brand. The radio ad is boring, and doesn’t go along with the doctor 15 | P a g e

theme; it is something entirely different. Regular Dr Pepper doesn’t seem to have any current print ads. The Diet Dr Pepper ads are taking on a completely separate approach, as well; the focus is on the fact that although it is diet, it still tastes just as sweet as other treats. Their online features follow yet another path, focusing on how old the brand is and how it has changed through the years. In order to have more of a dedicated following, Dr Pepper needs to focus on one powerful group and should reach out to them in a way that makes them loyal to the brand because it truly relates to them and makes them feel good. The Dr Pepper drinker, like most intelligent consumers, doesn’t buy into commercials. They buy into stories they want to believe in. They want to be a member of a group; a group that knows what they represent. The marketing strategies used are very sporadic. It’s apparent that Dr Pepper is trying to take advantage of irrelevant material that seems to be carrying a lot of buzz and riding the wave by using it as a marketing opportunity. Although SPM Agency is always looking for advertising/marketing windows, we will not do so by sacrificing the authenticity in what we believe Dr Pepper represents. 16 | P a g e

II. Cultural Brief

Cultural Brief Statement Dr Pepper appeals to the over-worked young professional who is dissatisfied with the overly materialistic world, which has made him/her, lose sight of the simple joys of life.

Myth Market We titled our myth market, Generation “Y”ired. This group of people is made up of young professionals who are about 24-35 years old. They are never without their trusted technology be it there laptop, mp3 player or blackberry cell phone. They heavily rely on these tools to be able to be in constant communication with friends and check up on work but realize that this lifestyle has invaded their personal life and eroded some of their

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values. They are burned out by the fast-paced, long-hours and demanding work schedule that they can’t seem to leave behind. They are nostalgic about their old family road trips they went on as kids because it focused on the simple pleasures in life. Mom and Dad would pile everyone into a car and they would drive to a campsite and there were no distractions of iPods, cell phones and laptops. There was more of a focus on the family, nature, and exploration. Generation “Y”ired feels like they have lost sight of themselves and their values, and are looking for a way to recapture their ideals. They want to find an appropriate balance of work, family and friends and they realize that in order to do this they need to disconnect with the lifestyle that they have become dissatisfied with.

Cultural Contradiction Our cultural contradiction is that the economy is in shambles. When Generation “Y”ired was first entering the workplace there was this big technology boom and there was an increase in demand for young, talented and determined employees who knew how to use all the 18 | P a g e

technology that was coming out. Currently, we have entered a recession and workplace layoffs are growing at an alarming rate. This generation has also seen the deterioration of family values and the nuclear family as divorce has become a common theme in our society. Many in Generation “Y”ired are children of divorce and while they have some skepticism towards the institution of marriage they still would like to be able to be happily married. Generation “Y”ired has been told by society to believe that by gaining material goods one becomes happy. They are realizing that this has proven to be untrue and that all of their material goods just add clutter and are another distraction in their lives toward achieving happiness.

Populist World/Authenticity Our populist world is focused on nature and simplicity. It revolves around being with the people you love, who are your friends and family exploring the real America. One filled with beautiful national parks and scenic journeys. It is about realizing that the corporate lifestyle is overrated and that true happiness can be easily achieved through the simple actions of 19 | P a g e

a hike or building s’mores around a campfire. It is the realization that the things that really matter in our lives are already around us and we just need to wake up and see it. It is a place of no distractions, where technology is scarcely used or relied upon. In this space there are no deadlines, conference calls, or work functions. Overall it is about simplicity, one where you are free of the distractions that might have been holding you back.

Authenticity We believe that Dr Pepper can create this populist world because of its background. It is not Pepsi or Coke which own the carbonated beverage industry. Dr Pepper offers consumers a unique blend of 23 flavors that can’t be duplicated or replicated. Dr Pepper is also the oldest soft drink and was founded in small town America. They can speak and promote traditional values because they were founded under them and have been a valuable cultural component since they first hit the market in 1885. They are not your traditionally corporate business, they have their roots as starting in a drugstore and their formula was not crafted by business20 | P a g e

savvy, opportunity seeking scientists but by a regular Joe, someone who just wanted to produce a high quality, refreshing and unique beverage.

Charismatic Aesthetic Our charismatic aesthetic is that Dr Pepper allows the consumer to escape the daily distractions and commitments of their life and lets them escape to a place where they are able to re-focus and re-evaluate their lives. It gives them a break from the hectic and fast-paced lifestyle they live and allows them to take a couple minutes to just enjoy their drink, relax and find peace. We coined the tagline, “Life Unplugged” to really capture that essence. We will also be bringing back Dr Pepper being bottled in glass bottles because it gives it that 50’s charm. We chose to do this because when one thinks of the 50’s they think of traditional values like the importance of family and it brings back a time when the world was simpler.

III. Dr Pepper Campaign

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“Life unplugged” This is Dr Pepper’s new tag-line. It places in a nutshell the “Y”ired Generation’s resentment toward the increasingly wired, modern world of business and money. To unplug their lives means to keep things simple and go back to the basics.

Packaging Dr Pepper’s packaging will show only the vintage logo and legal necessities like nutrition facts and ingredients. There will be no tag line, no flashy colors or graphics, nor any other unnecessary clutter that will detract from the story we are telling the consumer. To our myth market, fancy design represents conglomerate companies’ attempt at seducing consumers. Fanciness is something that represents the world in which he currently lives in. It’s the non-crowded simplicities that he appreciates. He has an intense, hidden desire to get back in touch with what he knows 22 | P a g e

is important and meaningful, so a fancy, brilliant design is too close of a reminder to his bleak, professional life. Our theme is “non-design.”

Campaign Particulars Since we are targeting the “Y”ired Generation, we decided to target the following television programs because it has been shown that the most popular television shows for women and men 24-35 are general dramas, reality shows and situational comedies. With this in mind we have decided to place television commercials on “The Office,” “The Colbert Report,” “The Daily Show with Jon Stewart” “Weeds” and “It’s Always Sunny in Philadelphia.” These shows relate to our target market because they make fun of the corporate lifestyle, are satirical and express the frustrations that Generation “Y”ired feel toward the current economy, their jobs, and American culture.

TV Avg. cost per 30 second commercial Prime Time (8-11p.m) = $130,325 23 | P a g e

Early News (5:30-7:00) = $45, 650 Late Night (11:30 – 1:00) = $45, 975 (MediaMark Research, 2008) Using the chart above about average costs per 30 second commercial, we have decided to place ads in each show once a week for an entire year.

Magazine Placement Since our target heavily reads magazines as a leisure activity. We have decided to place ads in the following publications throughout the year. We chose magazines that best targeted Generation “Y”ired since they have high readership among 24-35 year olds. We will place an ad, once a month in each publication.

Magazines

Year Freq

Time GQ

52 12

National

12

circulation

Full Page 4 color print ad

3.4 mil.

$ 241,350

932,000

$ 103,425

5.06 mil.

$ 204,000

3.14 mil.

$231,525

Geographic Newsweek Glamour

52 12

2.62 mil.

Men’s Health

12

Sports Illust.

52

1.8 mil. 3.25 mil.

$161,000 $149,000 $320,000 24 | P a g e

Cosmopolitan 12

2.9 mil.

$195,800

(MediaMark Research, 2008) Goals Through the use of our TV commercials, print advertising and recycling bin sponsorship we hope to achieve the following goals: •

Increase brand loyalty rating by 30 points in 1 year

•

Increase market share from 15% to 20% in 1 year

•

Increase first quarter net sales to $1.65 billion from $1.56 billion

•

Have Dr. Pepper represent to individuals a simplistic view of life.

Budget •

TV =$ 25,112,100

•

Magazines = $19,273,200 Total: $44,385,300

Print Ad: “Life in a Can”

In staying faithful to simplicity, our print ad rejects high-end graphics and gloss; clutter is what Dr Pepper is trying to avoid. “Life unplugged” 25 | P a g e

tells the Dr Pepper drinker that for the amount of time it takes to drink it, they can be a part of a world in which social pressures, work, and the economy cannot touch them.

In consuming Dr Pepper, Generation “Y”ired is committing to the fundamental values they wish to represent: family, togetherness, and simplicity.

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TV Spot: “Remember”

Generation "Y"ired’s TV Spot Character: Character: “Jack” Jack is a white, 28 year old accountant. Although he is successful and an active associate in a large firm, he doesn’t feel good about it; he feels guilty and tired of the contemporary world, and feels like he’s “out-oftouch” with the natural world. He’s stressed and overworked from the clutter of his professional life (work, cell phones, schedules, projects, etc.). He misses his childhood because it was a time when he didn’t feel the stresses he feels now. His intense desires of simplicity, and resentment toward the modern world are encapsulated in old family rituals of outdoor recreation.

The story of Jack matters to our myth market. He is relatable because he is overwhelmed and restricted by a tight schedule at work. Taking projects and assignments out of his office and into his home on the weekends, he is exhausted. The clutter of communication media he has

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to deal with on a day-to-day basis makes him resent the fast-paced world, and distracts him from having a moment to reflect on and evaluate his life on personal terms.

For Jack, Dr. Pepper represents a space of being with his family growing up. And in drinking Dr Pepper, he goes back to this time of worry-free youth for just a moment.

The amount of dialogue between Jack and his family is held to a minimum, as too much dialogue adds noise that’s unattractive to our Myth Market. Besides, Jack and his family, especially him and his father, don’t need extensive dialogue to know that they share a strong bond.

Tone The tone of voice for the TV spot is serene, as it provides a chance for the peaceful moments of Jack’s childhood to come back to him. It should make the viewer nostalgic of his own childhood. And it should remind the viewer of endearing moments with his own family; moments that he 29 | P a g e

can only now truly appreciate.

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We also decided to team up with National Parks and sponsor recycling cans at the top 15 most visited sites. Our advertisement on the

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bin directs users to visit our website where they can submit their road trip photos for a chance to win a Winnebago Sightseer RV. We thought this would help inspire Generation “Y”ired to take their own journeys to help them get unplugged and reconnect with their families. It also ties together our print and TV spots.

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Works Cited "Brandkeys | 2008 Customer Loyalty Engagement Index." Brand Keys, World Leader in Customer Loyalty and Engagement Metrics. 27 Oct. 2008 . "Cadbury Schweppes plc Overview." Marketline. 27 Oct. 2008 .

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Coleman, Loren. “New Montauk Monster pic and Cryptid Marketing” 1 Aug. 2008 . "Dr Pepper." 2008. Dr Pepper/Seven Up, Inc. . Gaudio, Greg. “Dr Pepper says ‘I do” to bridesmaid auction. Drinks are on them!” 26 Jun. 2008 . Ody, Elizabeth. "Dr. Pepper: Strong Brand, Cheap Stock washingtonpost.com." washingtonpost.com - nation, world, technology and Washington area news and headlines. 23 May 2008. 27 Oct. 2008 . "Our Brands - Dr Pepper Snapple Group." Home - Dr Pepper Snapple Group. 27 Oct. 2008 . Young, Larry. "Lehman Brothers Back to School Consumer Conference." Third Quarter 2008 Earnings Call. Boston, MA. 3 Sept. 2008. Events & Presentations. 13 Nov. 2008. Dr Pepper Snapple Group, Inc. . Zmuda, Natalie. "Free Dr Pepper for All as Guns N Roses Album Release is Set" Advertising Age... 22 Oct. 2008. 27 Oct. 2008 . Zmuda, Natalie. "Y&R Loses Almost 40-Year Hold on Dr Pepper." Advertising Age 7 Apr. 2008.

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