Ocean Spray Cranberry Classic Summer Campaign 2011

1. Ocean Spray Cranberry Classic Summer Campaign 2011

2. Index Report Executive Summary ……………………… 3 The Consumer ……………………… 5 Brand Perception ……………………… 7 Brand Diagnosis ……………………… 8 Target Audience ……………………… 9 Media Strategy ……………………… 10 Media Selection ……………………… 11 Advertising Program ……………………… 13 Budget ……………………… 14 CPT Analysis ……………………… 15 Evaluation ……………………… 16 Appendix SWOT Analysis ……………………… i Questionnaire ……………………… ii Detailed Budget ……………………… iii Potential Designs - Mujer Hoy ……………………… iv Sponsorship - 100% Mujer ……………………… vi ÍNDICE INDEX

3. Executive Summary Ocean Spray Cranberry Classic (henceforth referred to as OS Cranberry Classic)is the flagship product in the Ocean Spray Cranberries, Inc range. Since it was founded in 1930 Ocean Spray has experienced great international expansion, especially among English speaking markets achieving in the UK alone, sales of some 60 million litres a year. OS Cranberry Classic is present in over 50 countries, but has only captured considerable market share in those countries in which it has implemented an integrated marketing campaign, communicating to the customer the product's various benefits, such as its fresh, distinct flavour and undeniable health advantages. In 2007, sales of fruit juices in Spain grew by 8.2%, reaching 325 million euros. Significantly, sales of more exotically flavoured fruit juices (such as the cranberry) outperformed more traditional ones such as orange, pineapple and peach. Despite this progress, sales of cranberry juice are still low and fully 95% of the consumption of OS Cranberry Classic is Spain can be attributed the small British expatriate community. In addition, upon introducing the product to local consumers OS Cranberry Classic is faced with another hurdle due to the negative Spanish mindset towards the product's packaging. In local supermarkets the “Tetra-Brik” (as it is known in Spain) is chiefly associated with bulk purchases of cheap products, predominantly UHT milk, and very rarely used to contain Premium fruit juices. In short, for a product looking to make a good first impression in a new market OS Cranberry Classic's packaging is at odds with the high quality of its content. EXECUTIVE SUMMARY 3

4. This document is therefore an attempt to develop a strategic marketing plan for the entry of OS Cranberry Classic into the Spanish national market. It identifies the following two objectives as essential to the product's successful introduction and survival in Spain. ▪ Identify and educate a target audience about the health benefits of the cranberry, positioning OS Cranberry Classicas the market leader in this sector.▪ Improve the image of the product through a Premium message to provoke a greater sense of product value at the moment of purchase. In this hypothetical situation a budget of 40,000 € is assigned by Ocean Spray Cranberries, Incin order to launch a trial campaign with a duration of three months in the autonomous community of Valencia, (Valencia capital, Castellon and Alicante). EXECUTIVE SUMMARY 4

5. The Consumer´s Point of View • Lack of Brand Recognition • The OS Cranberry Classic brandis almost entirely unknown in Spain. • Benefits Unknown • Research suggests a lack of understanding about the various health benefits of the product. Very few people were able to acknowledge its specific health advantages such as the effects against cystitis or as an antioxidant. • Low Temporal Association • In contrast to other products such as orange juice, which is usually consumed in the morning, cranberry juice is not associated with any particular moment of the day. It is worth pointing out however that juice consumption increases substantially during the warmer months of the year. • An Adult Flavour • OS Cranberry Classic stands out as having a distinct flavor that leaves a somewhat dry and bitter aftertaste, making it popular among mature consumers with a more sophisticated palate. • Misleading Packaging. • OS Cranberry Classicis a Premium brand. However this is poorly reflected in its packaging. Given the prevalence of the “Tetra-Brik” among supermarket own-brands, upon first contact with OS Cranberry Classic, the Spanish consumer almost automatically identifies it alongside other cheap, low quality products. The production costs involved in changing the product packaging do not allow for sweeping modifications, however the image of OS Cranberry Classic, in the eyes of the Spanish consumer would benefit THE CONSUMER 5

6. enormously from a redesign to include high quality images of cranberries in a different colour scheme, avoiding white where possible. The packaging of any FMCG product its greatest brand ambassador so full advantage should be taken of this space to educate the target audience with a design that includes detailed information, entirely in Spanish, about the nunmerous qualities of the product. • The Challenge in Brief • OS Cranberry Classic is a new product in the Spanish market and remains almost entirely unknown to the Spanish consumer. In addition the many health benefits of cranberry juice are still not fully appreciatedand its packaging provokes reactions in contradiction with its premium positioning. • Nonetheless, among today's increasingly product savvy consumer there is a growing emphasis on pursuinga healthy lifestyle and a greater willingness to try new healthy products. The successful marketing campaign will be required to educate potential consumers about the health benefits of the cranberry while simultaneously and continuously casting the Ocean Spray brand in a Premium light. If this mix is achieved OS Cranberry Classic has a great opportunity to capture market share among a receptive, but hitherto uniformed audience. THE CONSUMER 6

7. Brand Perception Among the few consumers of cranberry juice in Spain, fewer still have heard of OS Cranberry Classic. This problem is compounded when the first contact with the product often produces negative reactions. The campaign's objective are therefore twofold: ▪ Introduce the product and educate the consumer about the benefits of cranberry juice; its high vitamin C content and positive effects against cistitis. ▪ Stimulate at every possible moment an image of quality, positioning it as a premium product. Detailed above is the brand perception forecast of OS Cranberry Classic in relation to its main competitors. It is the responsibility of the campaign to stimulate this shift in perception. Future Healthy BRAND PERCEPTION Today Premium Not Premium Unhealthy 7

8. Brand Diagnostics The premium image of OS Cranberry Classicis reflected in its price tag but not in its packaging. Therefore at the time of purchase consumers, unaware of the quality of the Ocean Spray brand, perceive greater value in cheaper products. The above graphic shows the imbalance of consumer brand perception between UK and Spanish markets due to the low regard win which product's packaging is currently held by local consumers. Without a viable modification in the packaging format, shifting attitudes of Spanish consumers towards the “Tetra Brik” will be essential to the product's continued survival in Spain. Reinforcing this image by communicating the product's health benefits will enhance the brand's value and influence consumer's choice of product at the time of purchase. UnitedKingdom Spain Healthy Healthy Quality Quality ¿Value? Value BRAND DIAGNOSIS 8

9. Target Audience SecondaryAudience Meet Sandra: Aged between 28 - 35 years Sandra is an independent, university educated woman who lives away from home and has a full-time job. She has already made the decision to form a family with her partner, or is thinking about it. She has an above average income but still keeps a prudent eye on her personal economy, spending approximately 50€ on the weekly shop. She regularly drinks fruit juices believing them to be an important vitamin source, has heard of cranberry juice but PrimaryAudience Meet Maribel: Aged between 35 and 55 years, Maribel is a modern mother with a part time job. She predominantly lives in a modern suburb near a big city, where her husband works. She still feels young but she is conscious of her age. She looks after herself and visits beauticians and health centers with some regularity. She is firmly in the ABC1 category and her family has an annual income of approximately 60,000€. Maribel is responsible for the weekly shop, spending on average about 120€ in quality super market chains such as Corte Ingles or Mercadona. She is a rarely consumes it. She is a modern, active and sporty woman, who is concerned with her image and diet. Her interests include fashion, politics and current affairs and she loves to travel whenever possible. regular juice drinker and is aware of cranberry juice but not fully convinced of its benefits. When she is not working, she takes care of the house and children, and tries to get some exercise whenever possible. She reads wellness, beauty, and decoration magazines and is comfortable using the computer, regularly browsing her favourite sites. At the weekend she enjoys going out for dinner with friends or getting away to the country with her family. TARGET AUDIENCE RESUMEN EJECUTIVO RESUMEN EJECUTIVO 9

10. Advertising Strategy Among the national market OS Cranberry Classic is a new product. In addition cranberry juice consumption in Spain is low. It is therefore logical that the marketing campaign adopts a strategy that combines both high reach and high frequency. Reach In order to achieve the highest possible reach the campaign shall combine three principal medias: magazine, online and radio, choosing those which offer the greatest penetration among the target audience. Frequency As a new product it is essential to reach a minimum frequency of three times per week taking into account both the weekly shopping patterns of our target audience and the four step AIDA purchasing process. The strategy also recognizes the rise in juice consumption throughout the summer months and it is therefore considered logical to launch the campaign in late spring/early summer in anticipation of the warmer season. Campaign Objectives Extend the message of OS Cranberry Classic as a quality and healthy fruit juice to 70% of the target audience with a frequency of at least four times per week. MEDIA STRATEGY 10

11. Media Selection Wellbeing and Beauty Magazines The high quality and authenticity of such magazines mean they are ideally suited to achieve both of the primary campaign objectives; to educate the target audience through content rich adverts and improve brand image by means of a premium focused creative. However, as the vast majority of magazines of this genre are published monthly, the campaign will struggle to reach the desired frequency if they are used in exclusivity. MujerHoy (Woman Today) magazine has been chosen because of its weekly print run and predominant female ABC1 readership profile. Nevertheless, used on its own this medium is still not considered effective enough to cause the desired impact. For a design guideline see Appendix IV. Online Unlike other media, online advertising offers two way consumer-brand communication and adds invaluable feedback to the campaign. The internet is an important part of everyday life for our target audience and an online presence offers the opportunity to interact with them in a less intrusive manner. The online contribution will be run in collaboration with www.mujerhoy.com, through a tailored campaign with their “Club de Probabdores” (Sampling Club). Included in this offer is a branded newsletter, a permanent button on the Home Page and the creation of a tailored campaign microsite. For further information see Appendix V. Radio Radio brings flexibility to the campaign and is the perfect accompaniment to the print media. It is a malleable communication tool that increases frequency with immediate effect and can be timed to coincide the behaviour of the target audience. MEDIA SELECTION 11

12. …Radio Cadena100 FM is considered the best option, offering a high coverage among the female ABC1 audience and also a more local penetration. Events Event Marketing provides the opportunity to place OS Cranberry Classic directly in front of the consumer, explain its benefits, collect feedback and actively explain the benefits of the product. By associating the product with appropriate events it is possible to create synergy within the marketing message and promote brand empathy. 100% Mujer(100% Woman) will run for one month in Valencia in collaboration with CadenaCienand offers sponsorship and product placement opportunities throughout a range of woman-centric events. For further information see Appendix VI. Sampling The transition from desire to purchase will be aided by a targeted sampling campaign. Teams of brand ambassadors in or close to the main points of sale will distribute samples, explain the product's benefits, interview consumers and collect feedback. Other Considerations Social Networks: Extend current Facebook and Twitter presence to include information in Spanish. Cost effective but requires constant monitoring. Television: Long term consideration to significantly increase reach. Expensive. MEDIA SELECTION 12

13. ADVERTISING SCHEDULE Advertsing Schedule 13

14. AdvertisingBudget Ocean Spray CranberreisInc has assigned a budget of 40,000 €to this three month campaign. As a new product in the Spanish market the importance of high coverage among the target audience can not be underestimated. Given its highly targeted readership of nearly two million, Mujer Hoymagazine brings exceptional reach to the campaign and is accordingly attributed 50%of the budget. 15% is allocated to an online presence through a tailored campaign in collaboration with www.mujerhoy.com. To promote the product close to the time of purchase it is considered necessary to devote 14% of the budget to a sampling campaign, recruiting brand ambassadors to educate potential consumers with the objective of converting interest and desire into sales. As a short campaign it is essential to reach the desired frequency without delay. For this reason 11% of the budget is assigned to radio as it is capable of making an immediate impact. Included in the radio budget allocation is the sponsorship of 100% Mujer, a month long woman-centric promotional event in collaboration with Cadena 100 Valencia 10% of the budget is reserved as a contingency in the event of possible price fluctuations and/or campaign modification. For further information about the budget see Appendix III. BUDGET 14

15. CPT Analysis Analysed below are the main media used throughout the campaign from the point of view of their efficiency; i.e. the cost involved in extending the message to one thousand consumers among the target audience, commonly known as Cost Per Thousand (CPT). CPT ANALYSIS 15

16. Campaign Evaluation • As an unknown product in a new market the ultimate measure of the campaign's success will be the resultant increase in sales of OS Cranberry Classic among Spanish consumers. • In addition however, it is important to measure as often as possible whether the campaign is producing the desired effects among both potential and actual consumers. • Before Launch • All creative ideas will be tested with focus groups and in depths interviews to ensure the correct interpretation and reception of the campaign message. • During the Campaign • During the entire campaign interviews with consumers will be held to monitor product acceptance and gauge opinion. The interviews are intended to find out the levels of brand recall, perception and awareness. • Additional evaluation • The campaign with www.mujerhoy.com and the Club de Probadores will provide essential feedback from consumers about the product, likewise any development of Ocean Spray's Facebook and Twitter presence in Spain. EVALUACIÓN EVALUATION 16 16

17. S.W.O.T. Analysis i

18. Reasearch rechniques • Self Completion Interview • Gender: M/F • Age: - 25, 25-35, 35-50, 50 + • Do you consume cranberry juice? Y N • (if no please go to question 4) • 2. Any brand in particular? _____________________ • 3. How often? • Less than once a day Once a day more than once a day • 4. Do you associate cranberry juice with any country in particular? • _____________________________________________ • 5. What is you opinion of cranberry juice? • ­­­­­­­­­­­ _____________________________________________ • 6. Have you heard of Ocean Spray? Y N • 7. Are you able to identify any benefits of cranberry juice? • _____________________________________________ • 8. If Ocean Spray were a person what would you think of him/her? • _____________________________________________ • 9. What is the first think that comes into your mind when you think of cranberry juice? • _____________________________________________ ii

19. Detailed Budget iii

20. Magazine: Mujer Hoy Potential design iv

21. Club de Probadores (Sampling Club) Ocean Spray Microsite in www.mujerhoy.com Potential design v

22. Sponsorship- 100% Mujer For one month in Valencia Cadena100 FM will hold a series of promotional activities targeted, as the name suggests, exclusively at women. The event focuses entirely on women and their role in all aspects of daily life. It will include a series of hands-on activities such as sport events, fashion and beauty sessions and wellbeing seminars, with the aim of enhancing and empowering the role of women in today's society . The sponsorship includes: - Sponsor's name throughout the promotional radio campaign to be held during the week preceding the event. - Sponsors logo on all marketing collateral associated with the events; newsletters, press releases etc. - Banners and posters at chosen events. - A campaign of 20 second radio adverts on Cadena 100 FM throughout the event. vi

23. A report by Michael Messum On behalf of JasaInternacional S.A. Tel: 675 367 683 Email: mickmessum@hotmail.com