Laura Baertschi, Shamir Lee, Dannielle Raiken, Lauren Weber, Yooji Yang

SmartWater

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Executive Summary Situation Analysis Creative Strategy Media Objective & Strategies Media Integration or Synergy Plan Media Flowchart References Appendix
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Smartwater has been hydrating and replenishing energy since its creation in the mid-nineties. Smartwater has distinguished itself from not only other water bottle-brands, but also sports drinks with its incorporation of electrolytes, as well as implementation of a vapor distillation process. Smartwater attracts 18-24 year old consumers who are on the go, active and healthy. In this era where fitness and health are paramount, people deserve a beverage that is pure, simple, and healthy, something that will re-energize them during and after a tiring day. They need to be smart when choosing what to put into their body. Smartwater has a moderate presence in the water-bottle brand industry. Fellow Glaceau brand, VitmainWater, has taken the spotlight with its flavor and sports drink label. To differentiate itself from other water brands, as well as create its own image apart from VitaminWater, Smartwater will highlight all of its energy replenishing qualities including the inclusion of electrolytes. Traditional and nontraditional media will be employed, with sales promotions including social media and events, print, and ambient advertising. The traditional media will follow a combination scheduling plan to highlight the times of year where water consumption is most popular and crucial, reaching the target demographic when they are most likely to desire Smartwater. The campaign will take place in major cities, its exposure trickling down into the smaller parts of the nation. This plan will establish Smartwater as the go-to water bottle brand for consumers. The campaign will position Smartwater as the water that will always be there to meet consumer needs, while energizing and replenishing along the way, no matter the location. This gives consumers the beverage they need to hydrate themselves while also providing nutrients. Drinking Smartwater is drinking smart.

Company & Brand Background

The Smartwater brand was first created during 1996 in Whitestone, Queens. J. Darius Bikoff founded Energy Brands, which is the alternate name for Glaceau. Glaceau is the manufacturer of various lines of enhanced water including, vitaminenergy, fruitwater, Smartwater, and, the most famous and widely known, VitaminWater. Despite the popularity of VitaminWater, it was Smartwater that was released first, at the launch of the company. What really set Smartwater apart from the other bottled water brands at the time of its launch was its inclusion of electrolytes and the fact that it was vapor-distilled. Its innovative purification process is also notable because during the process, magnesium, calcium and potassium are added to Smartwater. This allows Smartwater to not only be in the category of bottled water, but also be considered an energy drink.

In 2007, just 11 years after it was created, the Coca-Cola company bought Glaceau from Bikoff for $4.1 billion. Coke wanted to up their sales of non-carbonated beverages, and this was their way to do so. In recent years in the United States, the sales of non-carbonated beverages have been growing much faster than soda, giving them an opportunity to make even more money than they had been. Bikoff wanted his brand to reach further, he wanted it to be seen all over the world, and he knew Coke would be able to achieve this dream. Since selling to Coca-Cola, Glaceau has gained even more popularity. Using high profile celebrities such as Jennifer Aniston and Tom Brady to endorse the product, Smartwater has been pushed even further into the publics eye. Aniston gives it a fresh, innovative image, while Brady gives it a healthy, fitness-oriented image. Its distributed throughout supermarkets, Walmart, Target, specialty food stores and more all throughout the United States, making it very accessible to all consumers.

Competitive Analysis The competitive market for purified, luxury water has increased through the years with a wide variety of new brands popping up. Other luxury water brands include Evian, Fiji, and Voss. Some alternatives to consume include flavored energy drinks, such as Gatorade or Powerade. Each of these products contain minerals and electrolytes that make them stand out from regular bottled spring water. The competitors in this market are all pretty similar which makes it difficult for Smartwater to differentiate itself from the other bottled luxury mineral waters.

Evian
Market Share: 0.3% (MailOnline, 2013) Sales: $94 million (AdAge, 2013) Marketing/Advertising Strategies: Evians current slogan, Live young, expresses the brands overall personality: youth. This image of youth and vitality has been associated with the brand up until the present time. In 1998, Evian teamed up with Virgin Records, another brand which centralizes its image on youth, which strengthened Evians image. They included their logo and images of the Evian bottle throughout the booklet in the mix album Club Nation. Evian was even mentioned in Hollywood films, such as 1998s The Parent Trap. Their 2009 advertising campaign, Evian Roller Babies, an online video advertisement that eventually made its way to TV, was highly successful, garnering the brand many awards. They also rely on print advertising, specifically in magazines. (BottledWaterWeb, 2011) Positioning: Evians origin in France creates a luxury image, coming from an area around Lake Geneva. More expensive in price, many celebrities consume Evian, making it a sought-after brand. Live Young, the brands slogan, perfectly embodies the image of Evian: fresh, new, and young.

FIJI
Market Share: 2% Sales: $85 million (Wall Street Journal, 2010) Marketing/Advertising Strategies: FIJI is available in hotels, fine restaurants, retail locations, and even direct delivery. FIJI claims to be the number one in the imported water market and is sold worldwide in over 50 countries. In 2007, the FIJI Water Foundation was launched, aiming to provide clean water in rural communities around the world; build educational facilities for children, teenagers and adults; provide access to healthcare in less fortunate communities; and offer disaster relief on islands that experience natural disasters such as floods. This has given them more recognition across the globe. They are also in partnership with environmental organizations Conservation International and 1% for the Planet, further enhancing their image as natural and environmentally friendly. FIJI relies heavily on print advertising, but has also utilized outdoor ads. (FIJI, 2013) Positioning: FIJI Water positions itself as an artesian water bottle brand. Being directly from Fiji, as the brand claims, they possess a pure, natural image, perfected by nature and untouched by man. As described by FIJI, rain falls to the earth and is purified naturally by being filtered through layers of volcanic rock, which then collects in a natural artesian aquifer.

Voss
Market Share: N/A Sales: N/A Marketing/Advertising Strategies: They aim to be viewed as a fine water brand. Voss primarily spends its advertising dollars on sending out their product exclusively to high end and luxury restaurants, hotels, clubs, spas and other fine establishments; they do not distribute their product to local stores. Their brand status was also helped by celebrities such as Madonna being photographed with the bottle, which is essentially free advertising/marketing. On July 1 2013, Voss launched a Summer of Voss campaign, which was a social media based campaign designed to raise more of a presence online. Participants just needed to Like on Facebook or follow on Twitter to be entered into a sweepstakes. Those who were selected were offered a luxury getaway, which lines up with their brand image. They also mainly only spend their advertising dollars on magazine ads, about $245,300 annually. Positioning: Voss positions itself as an artesian water from Norway. They mention the fact that their water is from Norway at any chance they get; this is what sets them apart. Since their water is purer than any other water brand around, they want to position themselves along other luxury establishments, and consumers.

Gatorade
Market Share: 70% Sales: $3.3 billion (Forbes.com, 2012) Marketing/Advertising Strategies: Recent Gatorade campaigns have been print ads. They want the consumer to really know and understand their product and its benefits. They have launched many new products recently so its important for the consumer, athletes in this case, to know why they should choose Gatorade not only during physical activity, but also before and after. According to Knatar Media, Gatorade spent $101 million on measured media in 2012. Another new marketing strategy is placing their ads in school or camp locker rooms, which would double the number of potential consumers in the next few years. Positioning: Gatorade mainly focuses on athletes, amatur or professional. They want to help athletes rehydrate and replenish what they lost during their workout. They position themselves with sporting events and sports camps.

Powerade
Market Share: 28.5% Sales: $190.5 million (BevIndustry.com, 2011) Marketing/Advertising Strategies: In 2007, Powerade came out with a new campaign that was very successful in boosting sales. This campaign was called the Never Give Up campaign. Its main goal was to strengthen Powerades image of adaptability. This campaign was then repeated a couple of times to continually reinforce this message. Powerade wants to differentiate itself from other competitors and thus convince consumers to drink Powerade over its other competitors. Positioning: Powerade positions itself with young athletes. They want to think the way young athletes think about themselves. Basically they want to stress the importance of hard work and dedication.

Creative History of the Brand

Smartwater is currently working with Jennifer Aniston to promote and sponsor their brand. Jennifer Aniston is widely loved by the target audience for her Americas Sweetheart image. She has been representing the brand since 2010, where she posed in sexy workout pictures with a bottle of Smartwater. In 2012, she started up again with pictures that portray her youth and vitality, which aligns with what Smartwater strives to portray of themselves.This campaign used various print advertisements, which were heavily featured in popular magazines, such as People and Cosmopolitan, to show the brand as something that was essential to the life of Aniston. This position makes the consumer believe then, that Smartwater is essential to their own lives. Before Jennifer Aniston, Tom Brady, quarterback for the New England Patriots, was the face of Smartwater in 2007, 2008, and 2009. The slogan for the 2012 campaign was Simplicity is delicious.. Featured heavily in magazines targeted to males, such as ESPN and Sports Illustrated, the NFL star is depicted drinking Smartwater on and off the field. Tom Brady is also widely respected amongst the target audience, as he is seen as a strong, valuable player and person. Tom Brady is more likely to appeal to the male sector of the target market. Glaceau and Smartwater have positioned themselves to be a cheeky brand, with bright, fun colors, and text that is informally in all lower case. The text on these bottles of VitaminWater and Smartwater (both under the Glaceau name), portray a fun a whimsical personality for the brand. Smartwater is then viewed the same way, positioned as a fun and vibrant bottled water, compared to competitors ("Brand channel," 2005). This kind of positioning is geared more towards younger people. According to Simmons data, 25-35 year olds are the heaviest users of bottled spring water, so that should be a big focus of their target audience (Simmons data). The benefit or competitive advantage of Smartwater is that it provides a healthy way for someone to get electrolytes and minerals into their diet. Compared to some flavored sports drinks, Smartwater has 0 calories and will provide the consumer with energy needed to get through the day. Smartwater mainly focuses on print ads and will spend most of its advertising dollars on magazine ads (Ad$pender data). The product involvement for Smartwater is medium to high. Because of its name, consumers would be interested in looking into what makes up Smartwater. When the consumer finds out that Smartwater actually contains electrolytes and minerals from their vaporization process, they will want to know more and will go look at their website, where Smartwater has spent a lot of time and money.

Taeget Audience

The target audience of the Smartwater brand is most clearly defined as individuals who are of the ages 18-34 and enjoy an active, healthy, on-the-go lifestyle. These consumers also typically have plenty of disposable income, which allows them to splurge on their more expensive Smartwater. The target audience perceives the brand as gender neutral, as men and women are both inclined to purchase the brand. Due to the nature of the water industry, breaking through the clutter can be very difficult, as the products all offer virtually the same exact thing. Smartwater is electrolyte-enhanced, which allows the brand to offer a differentiated position to the market, thus capturing the attention of many health conscious consumers. Members of this particular target audience, who are often concerned with self-image, often feel that their personal value is enhanced if they are seen carrying a Smartwater water bottle, as the brand represents a certain aura of financial stability and health awareness. This perception is very important to the brand, as brand loyalty and awareness are easily created when consumers feel proud to be noticed with the specific brand. Recent celebrity endorsements include Jennifer Aniston and Tom Brady, both of whom the target audience highly respects, values, and relates to. Choosing celebrity endorsements that resonate with the target audience is especially important in a market where breaking through the clutter is especially and increasingly difficult.

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Geography Questions There are regional differences in consumption of the brand according to the VitaminWater data. By looking at the state distribution of the United States, we can see that the product is distributed throughout the states; however, the number of usage within the region has no significant gaps. The states that have the highest consumption are: Colorado (211), Connecticut (295), District of Columbia (1033), Louisiana (545), Minnesota (274), and New York (241). Among these regions, the highest consumption region is District of Columbia, which has the index number of 1033. When we see the regional distribution, the Northeast has the highest consumption of Smartwater, which has a 117 index number. The next highest is the Southern region with a 115 index number. One of the reasons why these regions and states have such a high consumption of Smartwater could be the high population. The southern region has a greater population than any other regions. Additionally, the states that have high consumption show mostly a high population range. (Simmons 2013)

Timing & Purchase Cycle

Smartwater is one of the spring water brands that has consistency throughout the season. However, among many other brands, Smartwater has seasonal differences in consumption. By making a prediction, Smartwater will be highly consumed during the summer season due to the hot weather and the high temperature, which influences consumers to drink more water. The western region, which is warm or hot throughout the entire season, may have the highest consumption. Since Smartwater is not cheap compared to other spring water brands, the population of the eastern region, no matter if the weather is hot or cold, will consume a significant amount because it has the image of professionals and business people. The spring water market is greatly expanded throughout the states. It would be better if the marketing focuses on the season and the fact that it is healthier than other water brands. Specifically during Summer, whether people exercise or not, people sweat, which causes them to become more tired than during other seasons. By focusing on peoples health, doing various promotions or marketing in every season, Smartwater will achieve the highest consumption among spring water brands in the United States.

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Media Mix
Smartwater has taken advantage of multiple media mediums to market and promote their brand. The brand heavily and effectively takes advantage of social media sites such as Twitter, YouTube, and Facebook for free advertising. The brand also benefits from additional free press from images published by tabloids, such as STAR and People, which show celebrities carrying Smartwater in their daily lives. The brands lighthearted, health-oriented nature is clearly depicted across all advertisements and mediums. Smartwaters total advertising budget for the year of September 2012 to August 2013 was $921,200 (see Table). Of this total, $6,808,000 was spent on magazine advertisements. Most recently, the brand saw extreme success when Jennifer Aniston was chosen to endorse the brand on a print and social media campaign. Jennifer Aniston is widely loved by the target audience for her Americas Sweetheart image and her extremely successful role on F.R.I.E.N.D.S. as Rachel Green. This campaign used various print advertisements, which were heavily featured in popular magazines, such as People and Cosmopolitan, to show the brand as something that was essential to the life of Aniston. Some of the advertisements even cleverly played upon tabloid rumors surrounding Anistons life, such as her supposed pregnancy and double life, to create lighthearted and funny ads that appeal to both men and women of the target market.
Tom Brady also worked with the brand to create print ads, featured heavily in magazines directed to males, such as ESPN and Sports Illustrated, depicting the NFL star drinking Smartwater on and off the field. Tom Brady is also widely respected amongst the target audience, as he is seen as a strong, valuable player and person. Tom Brady is more likely to appeal to the male sector of the target market. Smartwater used the remaining $1,868,000 on internet display ads. This strategy is very effective because the brand also has very strong social media accounts, which users are brought to when they click on internet display ads. Smartwaters Twitter account often tweets advertisements, which include images of the brand in scenes such as the beach, gym or kitchen. Through twitter, the brand takes advantage of hash tags to align itself with popular current events such as New York Fashion Week, #NYFW. Their twitter also provides followers with random facts and motivational support that resonate with the target audience. Smartwater positions their Facebook page in a manner that is very aligned with their Twitter. Both accounts post similar images, hash tags and status updates. Neither account ever uses capital letters when posting. In 2011, Jeremey Piven was chosen to endorse the brand through the execution of a YouTube video, posted by the official drinksmartwater account, which was entitled is jermey piven the smartest man alive? This video was also successful due to the hype surrounding the T.V. show Entourage, which Piven was a star of at the time.

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SWOT Analysis Listed below are the strengths and weaknesses of the Smartwater brand. Also included are opportunities for growth and possible threats that the brand faces from outside sources.

Strengths Reputation: Smartwater has created a strong presence through its endorsement by celebrities, such as Jennifer Aniston and Tom Brady. Image: The image of the bottle is light, fresh, and fun, incorporating copy that is sarcastic and humorous, appealing to the younger crowd. It includes electrolytes, it is purified and vapor distilled, and it contains no sodium, giving it a healthy image. It appeals to the health and fitness audience because of the electrolytes. This positions it as a sports water and also a healthier water compared to other brands. Accessibility: Its highly accessible; Smartwater is sold in stores like Walmart, Target, and gas stations.

Weaknesses Positioning: It hasnt been established among older people. Strategy: It hasnt proven that its a better brand than other water brands for people who are loyal to the others. Resources: The bottles arent environmentally friendly, which could harm its image among the environmentally conscious.

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Opportunities Presence: Smartwater could possibly have a stronger presence in the athletic world, especially with the growing interest in fitness that has been occurring. Its a good opportunity to have an even stronger presence. Market: It can establish itself outside of the United States Image: Continuing with the celebrity endorsements could make the image even greater. Threats
Image: It could be viewed as just another water brand by consumers. Strategy: Smartwater might be viewed as a marketing ploy to get consumers to buy their products, regarding the heavy promotion of their use of electrolytes and vapor distillation. Competitors: Other water brands have been around longer. Sports drinks have flavor, so people might choose those over Smartwater since they both contain electrolytes. People could buy a vapor compression distiller at home, which might be cheaper overall than buying Smartwater every week.

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Communication Objectives The main objective of this campaign is to increase brand awareness in consumers aged 18-24 through fostering relationships with consumers. Also, we would like to increase brand loyalty within that target audience through sponsorships and relationship marketing. We will use advertisements to encourage our audience to choose Smartwater as a go-to water brand for young adults when they need to hydrate and stay energized throughout the day. Brand Positioning To busy, active, and on-the-go males and females between the ages of 18 and 24 who need a healthy way to hydrate themselves with a refreshing burst of electrolytes throughout the day. Smartwater is a pure and vapor-distilled water brand, so consumers know its good for them. Smartwater draws its inspiration for purification from the clouds and will help rehydrate better and faster than any other bottled water. Drinking Smartwater is drinking smart. 14 Brand Promise Smartwater is the only brand of bottled water that has electrolytes, which help reenergize better than other water brands or flavored energy drinks. Tone The campaign is informative, yet fun, light, and casual. Theme Line/Slogan besmart.drinksmart.

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Print Ad #1

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Ambient Ad

The tagline besmart.drinksmart. will be under the Smartwater name. -Included with the nutritional information will be copy describing electrolytes. - Drinking Smartwater is drinking smart.

A Smartwater fish tank. This ambient ad idea will be placed in gyms throughout the targeted states. It acts as decoration. The glowing substance inside represents electrolytes, and lights up when the room is dimly lit.

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Target Audience and Media Mix

Objective: The gender neutral target audience of Smartwater is most clearly defined as individuals who are of the ages 18-24 and enjoy an active, healthy, on-the-go lifestyle. These consumers also typically have plenty of disposable income, which allows them to splurge on their more expensive Smartwater. According to the data in Table 2, the index number of the 18-24 year old demographic is 208, which shows that this is a demographic we have captured and should continue to focus on. To further break down this demographic, those who have graduated college, with an index number of 136, are one of the consumers of Smartwater. Part-time college students are the highest consumers with a robust index number of 146. Due to the nature of the water industry, breaking through the clutter can be very difficult, as the products all offer virtually the same exact thing. Smartwater is electrolyte-enhanced which allows the brand to offer a differentiated position to the market, thus capturing the attention of many health conscious consumers. Members of this particular target audience are often concerned with self-image and feel that their personal value is enhanced if they are seen carrying a Smartwater water bottle. The perception that the brand represents a certain aura of financial stability and health awareness is very important to the brand, as brand loyalty and awareness are easily created when consumers feel proud to be noticed with the specific brand. Strategy: The media mix that we will use to reach out to our target audience will include print ads in magazines, internet sponsorship and radio. The mediums selected for the media mix will be most effective in catching the attention of our target audience. We will focus on daytime and evening radio primarily, for our consumers are constantly moving. Daytime and evening are times of heavy gym attendance, travel from job locations and classes, which makes the placement more effective. We will focus on Top 40 stations and current music stations throughout our target states. Additionally, general interest magazines will feature print advertisements, with July even utilizing some mens and womens magazine placement. The ads will be featured in Vanity Fair, People, and Newsweek throughout most of the campaign. During the high reach and frequency months, we will also use Mens Fitness and Womens Health to promote our ads. The internet will be used for the duration of the campaign, reaching an even larger audience than the specific target. Also, click-thrus from the internet sponsorships will lead to Smartwater social media accounts, which will allow further advertising that is free.

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Reach and Frequency Objective: Beginning in November of 2014, we will launch the campaign with a low reach, steadily increasing to its peak in the summer months, specifically July. We will have a combination schedule with an average reach of 70 and an average frequency of 3, promoting off and on, focusing mostly within the hot temperatures where people become more thirsty. Promotions will die down at the end of August 2015, signaling the end of summer. Strategy: A media mix of radio, print, and internet media will be utilized to maximize the reach and frequency. Frequency will remain at a 3 average during the duration of the campaign. During the early months of our campaign, including November and February, the reach will be 50. Campaigning will resume in May also at 50, but will increase to 60 in June. July will be our highest reach of 70. Falling back down to a reach of 50 in August will mark the final months of our campaign. We will focus on daytime and evening radio primarily. Additionally, general interest magazines will feature print advertisements, with July even utilizing some mens and womens magazine placement. The internet will be used for the duration of the campaign. In order to increase reach and frequency, we will focus mainly on radio GRPs, with an average of 142.5 GRPs between them. However, we will also rely heavily on general interest magazines (average of 250 GRPs) and internet sponsorships (average of 150 GRPs). This media mix will be effective because it appeals to most of the target audience. The target is exposed to these forms of media daily, and their daytime routine usually takes place around the time periods we focused on.

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Scheduling and Timing

Objective: Our Smartwater campaign will begin in November 2014 and end at the end of August 2015, while the peak of our campaign will be in July 2015. During the months of December, January, March, April, September, and October there will be no brand promotions or advertising. At the beginning of the campaign, during the months of November and February,we will start advertising with radio, general interest magazines and internet sponsorships.

Strategy:
During November, our reach will be 50 and we will achieve this by advertising via morning/daytime/evening radio, general interest magazines and internet sponsorships. In February our reach will be 50 again, and we will achieve this by advertising in the same manner as November. After breaking for March and April, we will have a reach of 50 in May, which we will advertise using the same channels as previous months except lower units of each medium. In June we see a slight increase in reach at 60 and we will also slightly increase our shares in each of the previously listed mediums. In July our reach increases a little bit more to 70 and we will add advertising in the medium of men and womens magazines in combination with the same mediums as previous months. In August, the last month of our campaign, we see a slight decline in reach again at 50 and during this month there will be a slight decrease in all medium. Throughout all months of the campaign the frequency will be 3.

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Geography Objective: Eight major states will be chosen throughout the different regions within the United States. According to the previous data, high consumption occurred in high population states. Since some of the high population states consume Smartwater, we could target the other regions with the next highest index number.

Strategy: We will do a national campaign with spot emphasis throughout the nation. Each state will have the following index numbers: Arizona (102), Florida (111), Illinois (141), Massachusetts (138), New Mexico (140), Ohio (179), Pennsylvania (160), and Utah (110). For these regions, since many states with high index numbers are in the west, the Western region (86) and the Midwest (113) would be ideal for targeting the next consumers. Most of the states are on the western side, therefore the weather is the biggest reasons for choosing them. The Western region has a warm and hot climate, which causes people to consume more water than the people in other regions. Also, these are generally major states with high populations, a better target than small states with low populations. Once Smartwater establishes more brand loyalty, it can have a stronger presence in the smaller states.

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Budget

Our campaign will utilize a budget of $8 million. Based on past campaigns, the budget was much smaller, so we decided to raise it in order to accomplish more in our promotions. The budget was divided as follows:

Medium Radio Print Internet Total

National $1,837,300 $2,366,710 $3,547,500 $7,751,510

Radio achieves a high reach and frequency, and is also less expensive than the other mediums, making it an effective way to promote. Most of our spending, however, will be due to internet and print promotions. Specifically regarding internet, using this medium is the most powerful because of the audiences consumption of information. In this digital age, internet sponsorships are the most efficient and attention-grabbing.

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Sales Promotion #1: Elctrolyte Your Life ($50,000) Objective:

To establish a relationship with the Smartwater consumers, presenting Smartwater as a fun, relatable brand that cares about the consumer and his/her life/lifestyle.

Strategy:
Smartwater will launch Electrolyte Your Life, a social media campaign on Instagram with the hashtag #Electrolyfe. Contestants post pictures of their Smartwater all over the world, in interesting places, anything that catches someones eye with the hashtag #Electrolyfe. With this interactive 3 monthlong promotion, the five winners who create the most buzz win an all-expense-paid trip, at their time of choice in August, to the luxury location of Bora Bora to get re-energized for five days and four nights. This promotion begins in April and ends in June. Smartwater will announce the winners by early July so the winners have time to prepare for the trip! A guest will be allowed for each winner on the trip, spending Friday through Tuesday rejuvenating their bodies. During their stay, each winner will be given $3,000 to spend however they like in Bora Bora. Each winner also receives five Smartwater cases each to take home with them. By engaging consumers, this non-traditional promotional strategy makes them feel like they are a part of the Smartwater brand.

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Sales Promotion #2: Your Workout Sponsored by Smartwater (400,000) Objective: To increase the potential consumption of Smartwater by placing the brand in gyms across the nation, associating it with living a healthy lifestyle, encouraging consumers to continue pushing it to the limit. Strategy: Smartwater will sponsor a day at various local gyms across the US in target States (Arizona, Florida, Illinois, Massachusetts, New Mexico, Ohio, Pennsylvania, and Utah). This promotion will take place from November through January on various days in each gym to emphasize the importance of hydration even during the winter months. Banners will be placed all across the gym promoting Smartwater, and there will be giveaways of Smartwater towels, free small-sized bottle samples, and a coupon for half off the first purchase of Smartwater cases. These will be available to anyone who has a gym membership at the gyms sponsored. This non-traditional promotion will position Smartwater as a fitness drink, making a lasting impression as the first choice for all fitness junkies and health conscious consumers.

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Sales Promotion #3: Smartwater Color Run ($310,000)

Objective: To increase the awareness and potential consumption of Smartwater by associating the brand with a highly-regarded and engaging national event that promotes community health and fun.

Strategy: Smartwater will sponsor the Color Run in strategic cities within our target states (Arizona, Florida, Illinois, Massachusetts, New Mexico, Ohio, Pennsylvania, and Utah) within the months of September and October. As participants are running, cups of Smartwater will be handed out before, during, and after the 5K. The Smartwater logo will be on all merchandise, including the cups. Additionally, Smartwater banners will be placed all over the event, with a theme of blue and white decorating the area. This non-traditional promotion positions Smartwater as a fun, communityconscious brand. The family atmosphere makes it more relatable and approachable for consumers, causing them to look to Smartwater to satisfy their thirst needs.

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Sales Promotion #4: Smartwater Tracker ($300,000)

Objective: To establish a personal relationship with the consumer, by giving them a mobile application that they can use wherever they go, knowing that wherever they are, Smartwater is right there to help them throughout the day.

Strategy: This Smartwater App will be launched at the beginning of our campaign in November. It allows the user to track how much water they intake, in an effort to help consumers meet their daily recommended requirements, as well as how much they need to replenish during a workout. It will also count how many calories were burned during the workout and what nutrients they need to replenish. By including the nutritional necessities, this nontraditional promotion enhances the main trait of Smartwater: electrolytes. When people are notified of the nutrients they need, they will also think of the electrolytes they need replenished, automatically bringing Smartwater to mind, which has all of their electrolyte needs. Its

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Medium Net Radio-Morning Drive $(000) Net Radio-Daytime $(000) Net Radio-Evening Drive $(000) Net Radio-Nightime $(000) Magazines-Mens $(000) Magazines-Womens $(000) Magazines-General Interest $(000)

Apr

May 20 83.3 20 65.6 20 53.1 20 33.3

Jun 30 124.9 30 98.4 30 79.7 20 33.3

Jul 20 83.3 40 131.2 40 106.3 10 16.7 10 107.2 10 103.5

Aug 40 166.5 20 65.6 10 26.6 10 16.7

Sep

Oct

Target Demo: All Adults ages 18-24 Nov Dec Total Across 30 124.9 30 98.4 20 53.1 GRPS: COST: GRPS: COST: GRPS: COST: GRPS: COST: GRPS: COST: GRPS: COST: 190 791.0 170 557.8 140 372.0 70 116.6 10 107.2 10 103.5 250 2156.5

50 431.3

40 345.0

50 431.3

50 431.3

50 431.3

GRPS: COST:

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Internet-Sponsorship $(000) National Only Area GRPS $(000) Reach Avg. Freq. Spot Only Area GRPS $(000) Reach Avg. Freq. Spot + National GRPS $(000) Reach Avg. Freq.

20 473.0

30 709.5

30 709.5

20 473.0

20 473.0

GRPS: COST:

150 3547.5

149 1139.6 68.6 2.2

180 1390.9 72.2 2.5

210 1688.9 77.5 2.7

149 1179.7 67.6 2.2

149 1180.8 67.2 2.2

GRPS: Cost:

990 7752

GRPS: Cost:

0 0

149 1139.6 68.6 2.2

180 1390.9 72.2 2.5

210 1688.9 77.5 2.7

149 1179.7 67.6 2.2

149 1180.8 67.2 2.2

GRPS: Cost:

990 7752

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BottledWaterWeb. (2011). Smart Water. Retrieved 16 October, from http://www.bottledwaterweb.com/bottlersdetail.do?k=926.

Calorie count. (2013). Retrieved from http://caloriecount.about.com/calories-ihop-powerade-mountain-blast-16-i168775

Coca-Cola Company. (2013). Glaceau Smartwater. Retrieved 16 October 2013, from http://www.coca-colacompany.com/brands/glaceau-smartwater.

Edwin, Jack. 2008, June, 6. Vitamin Water founder Darius Bikoff Interview pt. 1. Retrived from http://www.youtube.com/watch?v=xeXjWoG5Y5c.

Evian. (n.d.). Retrieved from www.evian.com

Fiji. (n.d.). Retrieved from www.fijiwater.com Glaceau. (2013). smartwater Bottled Water Report as required by California SB 220. Retrieved 16 October 2013, from http://www.drinksmartwater.com/img/ smartwater_water_quality.pdf.

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Glaceau smartwater faq. (n.d.). Retrieved from http://www.drinksmartwater.com/faq/

Global Direct Investment Solution (2009). Retrieved from http://www.gdi-solutions.com/analysis/us_states.htm

Howard, T. (2007, October 31.) Tom Brady adds some muscle to Glaceau water line. USA Today. Retrieved from http://usatoday30.usatoday.com/money/industries/food/2007-10-30-brady-water_N.htm.

Infoplease (n.d.). Retrieved from http://www.infoplease.com/ipa/A0764220.html

Pepsico. (2013, 10 19). Retrieved from http://www.pepsicobeveragefacts.com/infobyproduct.php? prod_type=1026&prod_size=20&brand_fam_id=1043&brand_id=1002&product=Gatorade Orange Sorkin, A. (May, 2007 26). Coca-cola agrees to buy vitaminwater. Retrieved from http://www.nytimes.com/2007/05/26/business/26drink-web.html?_r=1&

Voss. (n.d.). Retrieved from www.vosswater.com "Smartwater from the Coke Product Line." Smartwater from the Coke Product Line. Coke Solutions, n.d. Web. 21 Oct. 2013. http://www.cokesolutions.com/OurProducts/Pages/Site%20Pages/ProductDetails.aspx?ItemID=358 "Glacau." Reference.com. N.p., n.d. Web. 21 Oct. 2013. http://www.reference.com/browse/Glac%C3%A9au

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"Jennifer Aniston Poses in Bed for Latest SmartWater Ad." E! Online. N.p., 10 July 2013. Web. 21 Oct. 2013. http://www.eonline.com/news/437934/jennifer-aniston-stuns-in-latest-smartwater-ad

Smartwater. Advertisement. YouTube. YouTube, 23 May 2011. Web. 21 Oct. 2013. http://www.youtube.com/watch?v=p6Ptv2-OWGQ&feature=relmfu

"Tom Brady Adds Some Muscle to Glacau Water Line." (30 October 2007) USATODAY.com. USA Today, n.d. Web. 21 Oct. 2013. http://usatoday30.usatoday.com/money/industries/food/2007-10-30-brady-water_N.htm

"Smartwater - New York, New York - Food/Beverages | Facebook." Facebook. N.p., n.d. Web. 21 Oct. 2013. https://www.facebook.com/smartwater

"Smartwater - New York, New York - Food/Beverages | Twitter." Twitter. N.p., n.d. Web. 21 Oct. 2013. https://twitter.com/smartwater

VOSS High Water. (5 March 2007). brandchannel. Retrieved 1 November 2013. http://www.brandchannel.com/features_profile.asp?pr_id=325 Voss positions itself as an Approachable Luxury Water. (23 September 2013). Path to Purchase Institute. Retrieved 1 November 2013. http://p2pi.org/article/126709

Why Gatorade Held Big Play for Second Quarter -- And Print Is Key To New Push. (25 March 2013). Advertising Age. Retrieved 1 November 2013. http://adage.com/article/news/gatorade-s-advertising-sat-quarter/240515/

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Digital Marketing Strategy - Powerade. (25 March 2013). Digital Marketing Monkey. Retrieved 1 November 2013. http://digitalmarketingmonkey.wordpress.com/2013/03/25/digital-marketing-strategy/

BottledWaterWeb. (2011) Evian Natural Spring Water. Retrieved 1 November 2013 from http://www.bottledwaterweb.com/bottlersdetail.do?k=41

FIJI. (2013). FAQS. Retrieved 1 November 2013 from http://www.fijiwater.com/faqs/

Island's Tax Increase Gives Fiji Water a Bitter Taste. (30 November 2010). The Wall Street Journal. Retrieved 1 November 2013 from http://online.wsj.com/news/articles/ SB10001424052748704584804575644011109095480

Evian revamps 'old and dated' bottle after brand falls behind in the designer water market (but will anyone spot the difference?) (22 May 2013) MailOnline. Retrieved 1 November 2013 from http://www.dailymail.co.uk/news/article-2329202/Evian-revamps-old-dated-bottle-brand-falls-designer-water-market.html Evian Seeking Return to Relevance, New Head Marketer. (7 August 2013). AdAge.com. Retrieved 1 November 2013. http://webcache.googleusercontent.com/search?q=cache:KLBd7zUfN08J:adage.com/article/cmo-strategy/evian-regainrelevance/243532/+&cd=1&hl=en&ct=clnk&gl=us

Gatorade. (October 2012). Forbes.com. Retrieved 1 November 2013. http://www.forbes.com/companies/gatorade/

Powerade Ion4, Vitaminwater Zero rank as New Product Pacesetters. (29 March 2011) Beverage Industry. Retrieved 1 November 2013. 32

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Table 1: Ad spending by Smartwater and Competitors 1/1/2012-12/31/2012

PRODUCT TOTAL DOLS (000) 113.2 NETWORK TV DOLS (000) 0 0 447.4 0 0 16.2 0 352.2 79 0 0 SLN TV DOLS (000) CABLE TV DOLS (000) 0 SPOT TV DOLS (000) 0 MAGAZINES DOLS (000) 95.7 LOCAL MAG DOLS (000) 17.5 B-TO-B DOLS (000) 0 INT DISPLAY DOLS (000 0

Evian : Mineral Water Evian : Spring Water

503.9 Fiji : Bottled Water 24.6 Fiji : Industrial Development 4802.4 Glaceau Smartwater : Bottled Water 10569.1 Powerade : RTS Sports Beverage 63.8 Voss : Bottled Water 16525.3 GRAND TOTAL

478.5

25.4

24.6

4590.5

11.8

200.1

6470.6

987.7

3058.9

45.9

2.8

6470.6

987.7

3075

5516.9

5516.9

24.6

275.1

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Table 2: Demographics (gender, age, education) based on VitaminWater Simmons Data (2013)
UNFLA GLACEAU VORED VITAMIN (PLAIN) WATER 12,475 117,432 100.0% 52.5% 100 52.5% 5,001 52,680 44.9% 48.9% 93 23.5% 7,474 64,752 55.1% 55.8% 106 28.9% 1,236 14,701 12.5% 57.8% 110 6.6% 207 2,052 100.0% 0.9% 100 0.9% 82 788 38.4% 0.7% 80 0.4% 125 1,264 61.6% 1.1% 119 0.6% *37 *484 *23.6% *1.9% *208 *0.2% COLLEGE3FULLYRSOR MORE(DIDNOTGRAD) COLLEGE2FULLYEARS COLLEGE1FULLYEAR COLLEGELESSTHAN1 YEAR Sample Weighted (000) Ver cal% Horizontal% Index Total% Sample Weighted (000) Ver cal% Horizontal% Index Total% Sample Weighted (000) Ver cal% Horizontal% Index Total% Sample Weighted (000) Ver cal% Horizontal% 1,570 16,305 7.3% 100.0% 100 7.3% 1,434 14,777 6.6% 100.0% 100 6.6% 2,303 23,711 10.6% 100.0% 100 10.6% 1,009 9,446 4.2% 100.0% 100 4.2% 997 10,226 7.3% 62.7% 100 4.6% 917 9,247 6.6% 62.6% 100 4.1% 1,473 15,377 11.0% 64.9% 104 6.9% 641 6,024 4.3% 63.8% 102 2.7% 834 8,593 7.3% 52.7% 100 3.8% 810 8,405 7.2% 56.9% 108 3.8% 1,261 12,950 11.0% 54.6% 104 5.8% 556 5,422 4.6% 57.4% 109 2.4% **13 **143 **7.0% **0.9% **96 **0.1% **16 **142 **6.9% **1.0% **105 **0.1% *32 *242 *11.8% *1.0% *111 *0.1% **7 **114 **5.6% **1.2% **132 **0.1%

Total Sample Weighted(000) Total Ver cal% Horizontal% Index Total% Sample Weighted(000) MALE Ver cal% Horizontal% Index Total% Sample Weighted(000) FEMALE Ver cal% Horizontal% Index Total% Sample Weighted(000) 1824 Ver cal% Horizontal% Index Total% 24,463 223,765 100.0% 100.0% 100 100.0% 10,708 107,823 48.2% 100.0% 100 48.2% 13,755 115,942 51.8% 100.0% 100 51.8% 2,138 25,428 11.4% 100.0% 100 11.4%

YES 14,911 139,761 100.0% 62.5% 100 62.5% 6,032 63,560 45.5% 58.9% 94 28.4% 8,879 76,201 54.5% 65.7% 105 34.1% 1,458 17,427 12.5% 68.5% 110 7.8%

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Index Total%

33

Sample Weighted(000) COLLEGE4YEARS(GRADUATED) Ver cal% Horizontal% Index Total% Sample Weighted(000) FULLTIMECOLLEGESTUDENT Ver cal% Horizontal% Index Total% Sample Weighted(000) PARTTIMECOLLEGESTUDENT Ver cal% Horizontal% Index Total%

4,033 32,233 14.4% 100.0% 100 14.4% 922 10,709 4.8% 100.0% 100 4.8% 542 6,129 2.7% 100.0% 100 2.7%

2,536 20,907 15.0% 64.9% 104 9.3% 652 7,848 5.6% 73.3% 117 3.5% 366 4,492 3.2% 73.3% 117 2.0%

2,227 18,312 15.6% 56.8% 108 8.2% 564 6,617 5.6% 61.8% 118 3.0% 302 3,485 3.0% 56.9% 108 1.6%

*38 *402 *19.6% *1.2% *136 *0.2% **16 **90 **4.4% **0.8% **91 **0.0% **7 **82 **4.0% **1.3% **146 **0.0%

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Table 3: Regional Consumption based on VitaminWater Simmons

GLACEAU VITAMIN WATER 207 2,052 100.0% 0.9% 100 0.9% **2 **31 **1.5% **0.9% **102 **0.0% *38 *218 *10.6% *0.8% *93 *0.1% **4 **56 **2.8% **1.9% **211 **0.0% ILLINOIS(IL) FLORIDA(FL) DISTRICTOFCOLUM BIA(DC) CONNECTICUT(CT) Sample Weighted (000) Ver cal% Horizontal% Index Total% Sample Weighted (000) Ver cal% Horizontal% Index Total% Sample Weighted (000) Ver cal% Horizontal% Index Total% Sample Weighted (000) Ver cal% Horizontal% 252 2,492 1.1% 100.0% 100 1.1% **30 **370 **0.2% **100.0% **6 **67 **3.3% **2.7% **295 **0.0% **1 **35 **1.7% **9.5%

Total Sample Weighted(000) Total Ver cal% Horizontal% Index Total% Sample Weighted(000) ARIZONA(AZ) Ver cal% Horizontal% Index Total% Sample Weighted(000) CALIFORNIA(CA) Ver cal% Horizontal% Index Total% Sample Weighted(000) COLORADO(CO) Ver cal% Horizontal% Index Total% 24,463 223,765 100.0% 100.0% 100 100.0% 298 3,318 1.5% 100.0% 100 1.5% 3,831 25,644 11.5% 100.0% 100 11.5% 221 2,913 1.3% 100.0% 100 1.3%

**100 **1,033 **0.2% 2,047 12,991 5.8% 100.0% 100 5.8% 1,785 9,959 4.5% 100.0% 100 4.5% **0.0% **13 **132 **6.4% **1.0% **111 **0.1% **17 **129 **6.3% **1.3% **141 **0.1%

35

36

Index Total%

Sample Weighted(000) INDIANA(IN) Ver cal% Horizontal% Index Total% Sample Weighted(000) LOUISIANA(LA) Ver cal% Horizontal% Index Total% Sample Weighted(000) MASSACHUSETTS(MA) Ver cal% Horizontal% Index Total% Sample Weighted(000) MINNESOTA(MN) Ver cal% Horizontal% Index Total% Sample Weighted(000) NEWYORK(NY) Ver cal% Horizontal% Index Total%

339 4,142 1.9% 100.0% 100 1.9% 106 2,301 1.0% 100.0% 100 1.0% 617 4,926 2.2% 100.0% 100 2.2% 306 3,770 1.7% 100.0% 100 1.7% 1,714 13,518 6.0% 100.0% 100 6.0%

**1 **70 **3.4% **1.7% **185 **0.0% **3 **115 **5.6% **5.0% **545 **0.1% **4 **62 **3.0% **1.3% **138 **0.0% **3 **95 **4.6% **2.5% **274 **0.0% **29 **299 **14.6% **2.2% **241 **0.1% UTAH(UT) PENNSYLVANIA(PA) OHIO(OH) NEWMEXICO(NM) NEWJERSEY(NJ)

Sample Weighted(000) Ver cal% Horizontal% Index Total% Sample Weighted(000) Ver cal% Horizontal% Index Total% Sample Weighted(000) Ver cal% Horizontal% Index Total% Sample Weighted(000) Ver cal% Horizontal% Index Total% Sample Weighted(000) Ver cal% Horizontal% Index Total%

1,062 6,823 3.0% 100.0% 100 3.0% 117 1,756 0.8% 100.0% 100 0.8% 991 9,123 4.1% 100.0% 100 4.1% 933 10,777 4.8% 100.0% 100 4.8% 126 1,668 0.7% 100.0% 100 0.7%

**11 **53 **2.6% **0.8% **85 **0.0% **2 **23 **1.1% **1.3% **140 **0.0% **7 **150 **7.3% **1.6% **179 **0.1% **9 **158 **7.7% **1.5% **160 **0.1% **2 **17 **0.8% **1.0% **110 **0.0%

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Table 4: Media Mix for Smartwater from Ad Spender

TOTAL DOLS (000)

MAG DOLS (000)

INT DISPLAY (000)

LOCAL MAG DOLS (000)

OUTDOOR DOLS (000)

Smartwater GRAND TOTAL

5371.4 5371.4

4590.5 4590.5

200.1 200.1

11.8 11.8

569 569

37 38

Marketing Factors That Affect Frequency +.6

Established brands High market share Dominant brand in mkt. High brand loyalty Long purchase cycle Product used occasionally -0.2 -0.2 -0.2 -0.2 -0.2 -0.2 -0.1 -0.1 -0.1 -0.1 -0.1 -0.1 +0.1 +0.1 +0.1 +0.1 +0.1 +0.1 +0.1 +0.1 +0.2 +0.2 +0.2 +0.2 +0.2 +0.2 +0.2 +0.2 New brands Low market share Smaller, less known brand Low brand loyalty Short purchase cycle, high volume Product used daily Need to beat competition Older consumers / children

Copy Factors That Affect Frequency -.3

Simple copy More unique copy Continuing campaign Product sell copy Single kind of message Larger ad units
To avoid wearout: Older messages

-0.2 -0.2 -0.2 -0.2 -0.2 -0.2 -0.2

-0.1 -0.1 -0.1 -0.1 -0.1 -0.1 -0.1

+0.1 +0.1 +0.1 +0.1 +0.1 +0.1 +0.1

+0.2 +0.2 +0.2 +0.2 +0.2 +0.2 +0.2

Complex copy Less unique copy New copy campaign Image copy More difficult kinds of messages Smaller ad units New messages

Media Factors That Affect Frequency -.4

Lower ad clutter -0.2 Compatible editorial env. -0.2 High media attentiveness -0.2 Continuity scheduling -0.2 Limited media mix -0.2 Opportunities for repetition -0.2 -0.1 -0.1 -0.1 -0.1 -0.1 -0.1 +0.1 +0.1 +0.1 +0.1 +0.1 +0.1 +0.2 +0.2 +0.2 +0.2 +0.2 +0.2 Higher ad clutter Non-compatible environment Low media attentiveness Pulsing / flighting Many media in mix Fewer opportunities

39