Dr PepperMedia Plan

Lookout! Advertising

Scott Gilbert

April 21st, 2011

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Table of ContentsSWOT..................................................................................................................................03

Objectives.............................................................................................................................04

National:

Geography............................................................................................................................05

Seasonality............................................................................................................................05

Target...................................................................................................................................06

Advertising Strategy...............................................................................................................07

Media Vehicles

! Traditional............................................................................................................07-09

! Non- Traditional........................................................................................................09

! Digital....................................................................................................................10-11

! Added Value and Earned..........................................................................................11-12

Flowchart

Houston:

Geography.............................................................................................................................14

Seasonality.............................................................................................................................14

Target....................................................................................................................................15

Advertising Strategy................................................................................................................16

Media Vehicles

! Traditional.................................................................................................................16

! Non- Traditional.........................................................................................................17

! Guerilla.....................................................................................................................18

! Earned.......................................................................................................................18

! Owned.......................................................................................................................19

Flowchart

Budget...................................................................................................................................21

References.............................................................................................................................22

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SWOT

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Strengths

•Strong portfolio of leading, consumer-preferred brands•Dr Pepper has a strong, integrated business model•Strong customer relations•Strong operating margins

Weaknesses

•Strong dependence on a small number of large retailers•Dependence on third-party bottling and distribution•Current levels of debt•Strong operating margins

Opportunities

•Growing Hispanic market•Restaurant distribution•Sports team sponsorships

Threats

•Government - Taxes and Laws•Competition: Pepsi and Coca-Cola•Emphasis on healthier lifestyles•Raw material shortages and cost increases.

Objectives

Marketing Objectives

Increase Dr Pepper sales by 5% the first year, and 8% within two years

Advertising Objectives

Increase top-of-mind awareness of Dr Pepper by 10%

Media Objectives and Strategies

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Objectives

•To reach 90% of our target audience with

an average frequency of 36 annually (85%

reach and frequency of 4 monthly)

•To provide continuous support with

emphasis leading into peak selling season

•To provide national support with emphasis

in top 5 opportunity markets

•To make Dr Pepper part of the consumer

conversation

Strategies

•By using a mix of traditional, non-traditional,

and digital media

•By scheduling traditional media broadcast

emphasis leading into peak selling season

•By using traditional media for national

support

•By using local media, promotions, and guerilla

to support the top 5 opportunity markets

•By using Facebook, Twitter, and a YouTube

brand channel .

National Geography

Our plan will have extra support in 5 DMAs

DMA BDI CDI BOI

New York 94 180 201

Chicago 106 151 142

Boston 94 151 161

Philadelphia 82 113 138

Denver 118 151 128

National Seasonality

The campaign will run from January 2012 - December 2012

Introductory Period:January - February

Emphasis PeriodJune - August

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National Target

The Fanatics: Males, 18-34

Male sports fans have a 120+ index for consumption of soft drinks. This

target will represent 30.5 million people in the United States.

Meet Sebastian

Sebastian is a 33-year-old insurance

executive in Chicago, IL. He works

hard, but he loves his sports. On

weekends you can find Sebastian

planted on his couch while catching

up on SportsCenter. He also is a

season ticket holder with the Bears,

Cubs, Fire, and Blackhawks.

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National Advertising StrategyObjectives

Our objective is to increase sales by 5% during the first year of the campaign. We want to increase the top-of-mind awareness of Dr Pepper 10% by reaching 90% of the target during the campaign.

Media Strategy

The campaign will run from January 2012 - December 2012. Lookout! Advertising has selected a blend of traditional, non-traditional, and digital media as well as sponsorships, product placements, and social media in order to effectively reach the target.

Traditional

BCS Sponsorship ($900,000)

Based on the 2011 rating of the Bowl Championships Series

National Championship game of 17.8, and the fact that

among men 18-34 the 2011 game was rated higher than 11 or

the 12 games from 1999-2010, we have arranged an

integrated sponsorship with :30s commercials

This sponsorship will yield 45,000,000 impressions.

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Super Bowl ($3,000,000)

Based on the fact the 2011 Super Bowl had an audience of

111,000,000, the most watched program ever, we have

purchased a :30s spot in this upcoming year’s Super Bowl.

This commercial will yield 80,000,000 impressions.

Network Television ($15,293,000)

Because the target audience watches between 20 and 30 hours

of television a month, we have identified 5 major networks that

reach our target. Our :30s spots will be featured on: ABC,

CBS, FOX, NBC, and CW. These spots will air during late-

fringe and prime-time shows such as: Castle, The Office, How I

Met Your Mother, Family Guy, House, and Supernatural.

These will run during the course of the entire campaign.

This will yield 500,000,000 impressions.

Cable Television ($12,000,000)

We have identified 4 major cable networks that reach our target.

Our :30s spots will be featured on: ESPN, FX, Spike, and CBS

College Sports Network. These spots will air during high rated

sporting events and sports news programming such as

SportsCenter.

This will yield 350,000,000 impressions.

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Print - Magazines ($6,929,000)

We have selected five magazines in three different categories that

have 120+ indices with our target. We will run 4-color full-page

ads during key emphasis months during the campaign. The

magazines we selected are:

Sports: Sports Illustrated and ESPN The Magazine

Computer and Gaming: Game Informer

Men’s Interest: Maxim and GQ

This will yield 131,433,280 impressions.

Non-Traditional

Transit ($2,100,000)

Because in our opportunity DMAs, a high percentage of commuters use

public transportation (as high as 54.7% in New York City), we will be

placing glass showcases at each subway station and selected bus stops.

This will yield 13,757,000 impressions.

Arena Digital Displays ($3,500,000)

Because Sports Fanatics are 3 times more likely to attend a sporting event

compared to the average consumer, we are placing 9‘x15’ full-color,

motion-sensitive, backlit displays in 6 sporting arenas. These displays will

grasp attention from those passing by. They will feature a talking Dr

Pepper bottle that will engage consumers.

This will yield 16,000,000 impressions.

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Digital

Madden 2012 In-Game Sponsorship

($2,000,000)

Because our target has an index over 200 for playing video games,

we will be sponsoring the “Red Zone” in the upcoming Madden

game. Each time a team is within 20 yards of the endzone, the Dr

Pepper sponsored red zone will be displayed. Ad recall is 2 times

greater in video games, in addition to being 3 times “less

annoying” according to studies. Additionally, Madden 2011 sold

over 5 million copies.

! ! ! ! This will yield 7,500,000 impressions.

Search Engine Marketing ($2,000,000)

40+% of our target utilizes a search engine at least once a month.

Using specific keywords that relate to our campaign will drive the

target to the Dr Pepper website. We will be purchasing the

keywords: Soccer, Football, Dark Knight Rises, Superman,

Man of Steel, Bowl Championship Series, and Super Bowl.

These will be purchased in correlation with each event or

season. These keywords will be purchased on Google, Yahoo!,

and Bing.

This will yield 390,000,000 impressions.

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Streaming Video ($1,000,000)

74% of our target utilizes streaming video on a weekly basis.

Because of this, we will feature :15s pre-roll advertisements on

HULU and YouTube.

This will yield 1,100,000,000 impressions.

Added Value

Banner Ads (Free)

We will place banner ads on the websites of

purchased media such as the BCS championships series, television networks, and magazines. This

will increase our reach by 10%. These will be added free as bonus weight.

This will yield an additional 2,342,170 impressions.

Earned

Super Bowl Contest (20,000)

During the commercials during the BCS Championship Game, Dr

Pepper will announce a new contest. For the following two weeks, Dr

Pepper will be selling soft drinks with special labels. Under one of these

labels will contain a football. 5 lucky consumers who find the labels will

win pairs of tickets to the Super Bowl on February 5th. We expect a 90%

reach and frequency of 3. This will generate buzz among our target and

create a positive association with the brand leading into the Super Bowl.

This will yield 82,342,000 impressions.

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The Dark Knight Rises (2,500,000)

Dr Pepper will sponsor the premier of The Dark Knight Rises in June

2012. The Dark Knight series has attracted the target audience extremely

well in the past. Dr Pepper will also receive a product placement in the

upcoming film. This will generate buzz leading into the hot summer

months and increase top-of-mind awareness for Dr Pepper. We expect a

75% reach with a frequency of 3.

This will yield 68,618,000 impressions.

Social Media Involvement ($50,000)

Dr Pepper will use Twitter, Facebook, and Flickr to communicate with the

target audience, announce promotions, and release “push” coupons and

discounts. This will make Dr Pepper part of the consumer

conversation.

This will yield 81,148,000 impressions.

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Local Geography

Harris County Population: 4,029,000

City of Houston Population: 2,090,000

National SeasonalityThe campaign will run from January 2012 - December 2012

Introductory Period:January - February

Emphasis PeriodApril - September

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Local Target

Hispanic Males, 18-24

Hispanic males in Houston have a 120+ index for consumption of soft

drinks. This target will represent 178,000 people in the city of

Houston.

Meet Chris

Chris is a 19-year-old Hispanic college

student at the University of Houston. He

takes his studies very seriously, however he

makes it a point to never miss seeing his

Coogs play. He also goes to as many Texans

and Dynamo games he can find the time

for.

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Houston Advertising StrategyMedia Strategy

By using a blend of non-traditional, owned, and guerilla media, we will increase our access to our target audience of Hispanic makes, 18-24. In addition to this extra emphasis in Houston, our national campaign will act as an umbrella, also reaching the Greater Houston market.

Traditional

Radio ($625,000)

We have selected a mix of Hispanic and Non-Hispanic radio stations that we feel will reach our

target. Our target tends to listen more to the AC and CHR formats, as well as Hispanic radio.

Because of this, we have selected 99.1 KODA (Sunny), 104.1 KRBE, 95.7 KHJZ (Hot 95.7) for our

AC and CHR formats. In addition, we have designated 104.9 KAMA and 102.9 KLTN for our

Hispanic emphasis. We will be running :15s ads during the drivetime daypart on weekdays.

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Non-Traditional

Outdoor ($728,000)

Lookout! Advertising has selected 5 DMAs we

feel have tremendous growth opportunity.

These markets are: New York City, Chicago,

Boston, Philadelphia, and Denver. In most of

these cities, the average daily commute is

about 1.5 hours. We will place 50 showings of

14‘x48’ outdoor boards in each of these

markets.

This will yield 26,318,000 impressions.

Cinema ($500,000)

Because cinema recall is three times greater than

television, Lookout! Advertising will be placing

cinema advertising in all Edwards and AMC

theaters in the Greater Houston Area. These ads

will be featured in the previews of popular action

and comedy movies.

This will yield 5,000,000 impressions.

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Guerilla

Kiss-Cam ($5,000)

Lookout! Advertising will hire a paid actor to passionately kiss a Dr Pepper bottle during the “Kiss-

Cam” moment of five Rockets home games at the

Toyota Center. This will be added as bonus weight

from the current partnership Dr Pepper Snapple

Group has with the Rockets. The “Kiss-Cam” is

attention-grabbing and this will promote the bold

and daring brand personality to help differentiate it

from other brands and increase top-of-mind

awareness.

This will yield 350,000 impressions.

Earned

Sponsorship of Free Concert ($1,000,000)

Because Dr Pepper has a partnership with the musical artist Pitbull, we will set up a free back-to-

school concert at Discovery Green. Pitbull scores very high with our

target’s interest, and sponsoring this will bring positive association

to the Dr Pepper brand, as well as increase top-of-mind-awareness.

This concert will be publicized using Facebook and other brand-

owned channels.

! ! ! This will yield 50,000 impressions.

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Owned

Point of Sale Displays ($350,000)

Because recency and point-of-sale can be the most persuasive when

selling a packaged good, Lookout! Advertising will place creative

in-store displays of Dr Pepper products at all H.E.B. stores in the

Greater Houston Area. These displays will also contain coupons to

encourage shoppers to make the purchase now. We calculated this

at a rate of $5,000 per month, per store.

This will yield 1,200,000 impressions, and additionally will

increase top-of-mind awareness of Dr Pepper.

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Budget

We’ve optimized the $60 million dollar budget to accomplish our objectives. Because we

consider ourselves a partner with Dr Pepper, we propose that the compensation be fee, rather

than commission based. This will return an additional $4 million back to the budget. We have

also included a $500,000 contingency fund to support the campaign.

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$60 Million Total Budget

Contingency

Magazines Cable Television

Out-of-Home

Digital

Earned

Local

Network Television

Agency Fee

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