COMM 422 Advertising Media Planning December 15, 2012

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Annelise Gaus Frank Aritz Jenny Shi Rachel Dong Tyler Pilarski COMM 422 Advertising Media Planning December 15, 2012

Transcript of COMM 422 Advertising Media Planning December 15, 2012

Annelise Gaus

Frank Aritz

Jenny Shi

Rachel Dong

Tyler Pilarski

COMM 422Advertising Media PlanningDecember 15, 2012

TABLE OF CONTENTS

1 Executive Summary 9 Tone2 Company & Brand Background Slogan3 Competitive Analysis 10 Creative Executions4 Creative History 11 Media Objectives & Strate-

giesTarget Audience 14 Reach & Frequency

5 Geography Scheduling & Timing6 Timing & Purchase Cycles Geography7 Questions about the Media Mix 15 Promotional Strategies8 SWOT Analysis 16 Media Budget 9 Communication Objectives 17 Media Flowchart

Brand Positioning 18 AppendixPromise 19 References

Nestlé’s Nescafé strives to be the best instant coffee brand, developing innovative and consumer-friendly products. Nescafé has established an excellent reputation since its beginnings in 1886 and continues its sta-tus as one of the most successful international, instant coffee brands. Nescafé’s iconic red mug has set the foundation for vibrant, dynamic campaigns worldwide. However, Nescafé’s presence among the young, 18 to 24-year old age demographic in the U.S. is smaller than its com-petitors. Research shows that a large percentage of instant coffee con-sumers fall within this age range, therefore, the target audience of this campaign is men and women between the ages of 18 and 24.

This customized media plan will reach the target audience and empha-size that Nescafé is the “it” coffee brand for the young generation of to-day. It will highlight the ease and quickness of Nescafé Instant Coffee, as if it were an individual’s very own “barista on-the-go.”

Promotional events, customized media vehicles and programs, and in-novative non-traditional media will exemplify Nescafé’s drive to create consumer-oriented products, reach the target audience through multiple outlets, and strengthen the concept that Nescafé is the perfect coffee for the busy lifestyle.

EXECUTIVE SUMMARY

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SITUATION ANALYSISCompany & Brand Background

Nestlé is the parent company of Nescafé coffee. The story of Nestlé began in 1886 in Cham, Switzerland (The Nescafe Story). Nestlé was the first condensed milk factory to open in Europe. The company quickly expanded its horizons and began developing a wide array of different products, such as infant cereal, Swiss chocolates, and their famous malt beverage, Milo. How-ever, in 1938 Nestlé struck gold with the release of its instant coffee, Nescafé. Not only was Nescafé loved by countless coffee drinkers worldwide, but it was also widely enjoyed by American soldiers stationed throughout Europe and Asia during World War II (History).

In recent years, the Nestlé brand has grown significantly. Today, Nescafé brand itself is worth around 13 billion dollars and every year about 94 billion cups of Nescafé are sold around the world (Nescafe Brand Study). That means that 3,000 cups of Nescafé are sold every second. Over the years Nestlé, and specifically the sub-brand of Nescafé, has launched countless coffee products. Nescafé’s current products include: Nescafé, Nescafé 3 in 1, Nescafé Cappuccino, Nescafé Classic, Nescafé Decaff, Nescafé Dolce Gusto, Nescafé Gold, and Nespresso (The Nescafe Story). The Nescafé brand of coffee is avail-able internationally.

Nescafé, along with other caffeinated coffee drinks, has many wonder-ful benefits. Drinking coffee can improve overall cognitive performance, such as perception, attention, memory, problem solving, as well as response abilities. Caffeinated beverages, such as coffee, promote muscular contraction and help to improve neuromuscular transmission. The consumption of caffeine also in-creases an individual’s exercise capacity. It can help to maintain a healthy body weight as well as increase metabolic rate. Coffee also contains powerful anti-oxidants that can help to neutralize free radicals in your body and protect body cells from damage (Coffetalk: Discover The Benefits of Coffee).

Nescafé’s vision as a company is to offer their coffee products interna-tionally to consumers in whatever manner that they see is most convenient and pleasurable for the costumers. They hope to be seen as the ultimate choice of product for in home as well as out of home use. Nescafé is quoted saying in a

Food & Drink Weekly article, “The goal is to be within arm’s reach wherever consumers go. This means setting up coffee bars in malls, movie theatres, on campus and setting up coffee outlets in convenience stores and gas stations. Even transforming the traditional vending machine coffee, which can some-times be compared to molten-hot liquid mud, Nescafé is redefining the automat-ed coffee dispenser into a gourmet delight” (Nestlé S.A., 2012). The ultimate goal of the Nescafé brand is to position their brand as, “an atmosphere of taste-ful coffee pleasure, (that is) warm and friendly.” Also, Nestlé’s Annual Report from 2011 says that its company tries, “Adding value through innovation and premiumisation.” They are also aim at, “Providing small moments of indulgent pleasure, of luxury, of increased value per consumption moment” (Nestlé S.A., 2012).

Nestlé’s objectives are to be recognized as the world leader in Nutri-tion, Health and Wellness, trusted by all its stakeholders, and to be the refer-ence for financial performance in its industry (Nestle Roadmap to Good Food, Good Life). Nestlé also understands that trust must be earned and can only be acquired after generations of reliable products. This is why the slogan, “Good Food, Good Life”, is a great representation of Nestlé’s company views and motivation. The Nestlé brand “has (strongly) benefited from the increase in demand for premium coffees” (Nescafe Brand Study) and they are very well focused on educating their consumers about all health aspects of their products. Nestlé as well as Nescafé are very consumer focused.

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STARBUCKS

Starbucks is internationally known for their strong and specialty coffees. They position their brand as a classy coffee for a younger generation. There are about 17,000 coffee shops distributed over 40 countries spanning the globe. Starbucks also owns Seattle’s Best Coffee, marketing its brand through grocery stores and many licensed retailers. Starbucks is a publicly owned entity founded in 1985 in Seattle, Washington (Hoover’s, 2009). Over the past year, the corporation has grown 31.75% in net income. Their market value is recorded around $37 billion with a single market share around $47(Hoover’s, 2009). Starbucks has a significant market share of 12.8%. Starbucks, as of this year, spend $11,503,000 on advertising (Ad$pender, 2012).

MAXWELL

Maxwell House, a popular brand of coffee known for “Good to the last drop” has a whopping market share of 18.3% and was bought out by Kraft Foods which is the fourth-largest consumer packaged food and beverage company in the country (Hoover’s, 2009). Some other products include Kool-Aid, Oscar Meyer meats and Kraft Mac & Cheese. This past year, Kraft had $23.97 billion in sales and enjoys a 8.79% sales growth. It is a publically owned company that has 18,000 employees (Hoover’s, 2009). In addition to the sales, Maxwell positions itself as a middle of the road coffee popular with adults and families. The most recent figures indicate that The Maxwell Company spent $2,379,000 on their latest instant coffee advertising budget (Ad$pender, 2012).

FOLGERS

Folgers enjoys the largest presence in the realm of coffee ground products. It satisfies the largest market share with an outstanding 24% and is the #1 coffee brand in the United States (Hoover’s, 2009). Folger’s famous slogan is: “The best part of waking up is Folgers in your cup.” It is also a publicly owned entity purchased by the J.M. Smucker Company. Also, Folgers J.M. Smucker saw sales of $99.90 million last year and has 1,038 employees (Hoover’s, 2009). Folgers typically caters to traditional ground coffee, which is different from

instant. Despite its high market presence, their instant coffee products only saw $37,000 in an advertising budget (Ad$pender, 2012).

Competi t ive Analysis

= $2,000,000 Advertising Dollars

Folgers Maxwell Nescafé Starbucks

(Ad$pender, 2012)

Creat ive History of Nest lé ’s NescaféWhen Nescafé was first released in 1938 the first version of the product

didn’t quite hit the nail on the head. The coffee wasn’t very palatable and the packing was very plain and simplistic. Surprisingly, it wasn’t until 1954 that Nescafé started making their product with 100% coffee. The previous versions had instead contained artificial ingredients, like carbohydrates to aid in stabi-lization (History). Finally in 1964, Nescafé ventured in the right direction and was able to create a product that effectively retained the delicious coffee flavor. In 1984 they were the first company to release an elegant freeze-dried coffee, called Gold Blend. Then in 1985 Nestlé stepped outside of the box and cleverly chose to launch the product Alta Rica, which was a coffee made from top of the line, grade “A” beans from Latin America. Today, Nescafé products such as lattes, mochas, and cappuccinos are available to customers worldwide (Nestle Roadmap to Good Food, Good Life).

The brand name itself is a combination of the mother-brand name Nestlé and the Portuguese word “café” meaning coffee. Together they make the eloquent name Nescafé. The visual logo that Nescafé has utilized since its start-up is the image of a red mug (Nescafe Brand Study). It can be seen in print ads as well as in commercials. The red Nescafé mug has become a real defining fea-ture of the brand. The current umbrella slogans that are being used are, “Good Food. Good Life”, “A simple joy every day.” and, “The best cafe. Yours.” Nescafé’s target audience is young adults, between the ages of 18-24. They aim at first time coffee drinkers, in attempts to gain their loyalty to Nescafé for life. In the United States, most chosen media vehicles, such as commercials, employ a hint of sensual and sexual moments. For example, a woman dancing sensually or a woman having just gotten out of the shower, shown enjoying a steaming cup of coffee. Nescafé is trying to associate their brand with a pleasurable and relaxing experience. When people think of instant coffee, they immediately think of Nescafé as a leading brand. It’s pretty clear that Nescafé has made its brand well established in the international coffee world.

An interesting recent international promotional activity that Nescafé has done is its yearly summer activities promotion in the UK. Buyers can collect promotional “activity points” that can be found on Nescafé products. After collecting a set number of points, Nescafé buyers can try out exciting extreme

sports such as rock climbing, snowboarding, or even horseback riding (Foottit, 2011).

Right here in the states, Nescafé has launched a new campaign called “Beyond the Cup”. As environmental concerns are on the rise amongst Nes-café’s primary target audience, young first-time coffee drinkers, the company decided to jump on the go-green bandwagon. Nescafé hopes to emphasize to its consumers how respectful they are to the environment and their coffee bean growers. Their website states, “Nescafé doesn’t own any commercial coffee farms nor do we promote contract farming. In most cases our coffee is sourced from small landholders” (Quality that goes beyond the cup). They also promote environmentally responsible farming techniques, production, as well as encour-aging responsible disposal and recycling practices. Nescafé has even utilized Facebook as well as Twitter as tools for reeling in consumers.

Target AudienceOur current target audience is individuals ages 34 and above. Current con-sumers of the brand are young adults in the US from ages 18-24 due to having the highest index number. The unemployed, retired, and high school educated students follow close behind with relatively high index numbers. (Simmons Market Research Bureau, 2011)

This target group generally has an irregular time schedule, due to rigorous class schedules, unpredictable social lives, and/or hourly-paid jobs. They are more likely to lead fast-paced lives and tend to run from one place to another. They also tend to function on a tight budget, turning once-sole brand users into brand switchers.

Instant coffee is convenient and easy, appropriate for the fast-paced lifestyle. With affordable prices and familiarization-by-advertising, Nescafé is the perfect product for the 18-24 year old.

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Potential target audience:

Individuals ages 55+ have a high index number of 101. This demographic is more prone to be brand loyal, choosing to purchase a product due to familiarity rather than price. Instant coffee also contains a much lower amount of caffeine and is much easier to make, offering a healthier and easier option for the 55+. (Simmons Market Research Bureau, 2011)

GeographyAlthough it is very popular internationally, Nescafé’s product is currently market-ed to the age group 18-24 in a couple of different US geographic regions. Utilizing a Simmon’s Data Survey, analyzing the BDI (Brand Development Index), CDI (Category Development Index) and potential for growth, we’ve ranked the Top 5 markets for Nescafé:

The Top 5 markets have strong sales, with BDI’s ranging from 111-252 with CDI’s from 99-158. On the other hand, West Central, a market with a BDI of 55 and a CDI of 84, has relatively low sales with small room for growth. (Simmons Market Research Bureau, 2011)

Total INSTANT COFFEE CONSUMERS

Total Index 100 100

Age: 18-24 Index 100 113

Age: 25-34 Index 100 102

Age: 35-54 Index 100 94

Age: 55+ Index 100 101

(Simmons Market Research Bureau, 2011)

(Simmons Market Research Bureau, 2011)

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Timing & Purchase CyclesThe current consumption of instant coffee is generally consistent throughout the year. Traditionally, coffee is drunk because of its caffeinated properties, giving consumers energy to begin their day. Consequently, coffee is most often drunk in the morning before a long day of work, whereas a cup of cappuccino in Italy may be more of an afternoon event. Advertising can therefore be creatively tailored to portray cultural trends, stressing coffee consumption on weekday mornings in America and encouraging a frothy treat after a Saturday luncheon

in Italy. Though definitive sales reports for single product Nescafé were out of reach, Nescafé accounts for approximately 19% of Nestlé’s total sales. The sales and stock reports of Nestlé show rising levels of consumption peaking in the months of April and October (NetAdvantage, Nestlé SA, 2005). Based on these quanti-tative reports as well as accounting for a cultural trend to consume warm liquids during the cold season(s), Nescafé should focus on heavier advertising during and prior to heavy consumption periods, known as a pulsing schedule. Since Nestlé stock (NSRGY) is related to their entire collection of products, this infor-mation should be considered important, but not the most vital (NetAdvantage,

Nestlé SA, 2005). Since Nescafé is a seasoned product, new campaign launches should occur during transitions from one quarter to the other, focusing on Q2, and Q4. This strategy allows coffee consumers to be aware of any new Nescafé product that

will hit the shelves during higher consumption periods (Q1~Q2 and Q3). This also propels the Nestlé Company forward during the low sale tides of other products, allowing its name to reach a wide audience with new and exciting

campaigns.

It’s also important to note that each 7oz container of instant coffee makes up to approximately 100 cups of coffee (Nescafé: Taster’s Choice claims to make up to 105 cups) (Nescafé, 2012). The average coffee drinker drinks about 3.1 cups of coffee a day (Coffee Research Institute, 2012), and generally consumes coffee throughout the year at a consistent rate. In a household of one, a 7oz container could last about a month, whereas in a household of two or more could result in multiple purchases of instant coffee a month. Because of this, it’s appropriate to have frequent reminder advertising. Furthermore, the media vehicles used should be based on its reach and frequency (GRPs), accounted for

over a monthly basis. Currently, competitor Maxwell House focuses a bulk of their advertising in Q1; Folgers focuses a bulk of their advertising in the Q2; Starbucks Instant Coffee consistently advertises at a low budget during the first 3 quarters, then focuses a bulk of their advertising on the Q4 (according to Ad$pender); and Nescafé consistently advertises their instant coffee products at a relatively high budget, with emphasis on the first two quarters. (Ad$pender, 2012)

*Annual Sales From Jan to Dec (NetAdvantage, Nestlé SA, 2005)

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Quest ions about the Media Mix

Nescafé’s current campaign messages are simple and transformational, oftentimes using sexual inferences in television, radio and print advertisements. Many employ techniques of twisted visuals and headlines. For example, one of Nescafé’s head-line states “We were instant before a small became tall.” Visual advertisements use colors brown and red frequently, emphasizing the tone of coffee and Nescafé’s signature red mug.

Nestlé’s Nescafé has implemented several Internet strategies. They have various Facebook pages for each of their target countries. Nescafé USA connects with 796,540 fans everyday while simultaneously connecting with over 4.5 million fans around the world. Nescafé’s homepage offers fans dynamic insights on Nescafé’s

coffees, goals, and green initiative. However, Nescafé has struggled to keep up twitter communications with a follow-ing feed of 5,635. For the time being, Twitter is a free service, making it one of the most efficient ways to communicate with an audience without producing a dent within a company budget.

According to Ad$pender, Nescafé spent a budget of $13,365,000 on total adver-tising in 2011, a bulk of which is spent on media vehicles: the Spanish Language Network TV (SLN) ($41,900), magazines ($38,000), and newspapers ($7,600). We consequently have leading shares of voice in SLN, magazines, Hispanic magazines,

and national spot radio. (Ad$pender, 2012)

(Ad$pender, 2012)

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SWOT Analysis

Strengths:

- Nescafé is a large-scale company, worldwide industry, and has a strong brand image.

- Nestlé is well-established and carries a vast collection of products.

- Nescafé has a strong national spot radio presence.

Weaknesses:

- Nescafé hasn’t taken advantage of advertising possibilities through network TV.

- Coffee consumers tend to view instant coffee as subordinate.- 87% of coffee consumers do not use Nescafé.

Opportunities:

- Target consumers are frequent social media users.- Target consumers are influenced by the frequency of

advertising.- Previous sole brand users are willing to switch brands

due to sudden lack of funds when entering college/full-time career.

Threats:

- College-age consumers are brand switchers.- Starbucks is following closely behind in advertising dollars,

leading with higher shares of voices in more media vehicles than Nescafé.

- 71% of the US population are not instant coffee users.

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Communicat ion Object ives

CREATIVE STRATEGY

To convert young, frequent brand switchers to Nescafé brand loyal customers. Advertising will accomplish this with a bright, lively campaign focusing on the speed and taste of Nescafé instant coffee. The target will gain awareness about Nescafé instant coffee and its convenience for the fast paced lifestyle of this demographic.

Brand Posi t ioningTo men and women ages 18-24 who lead fast-paced lives, Nescafé is the “it” coffee brand for the young generation of today that is a convenient as well as an affordable luxury; it’s the only brand that is a barista on-the-go that helps you to take on the day.

PromiseNescafé coffee provides an energizing and quick alternative to brewed coffee.

ToneEnergetic, Professional, Light-Hearted.

Our Slogan“Bring on the day. Nescafé.”

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CREATIVE EXECUTIONS: Print Advertisments

Bring on the Day.

Welcome to Punctuality 101. The professor will arrive in ten minutes. Students will arrive soon after. However, you’re al-ready here. Nescafé Instant Coffee is the quick and easy fix to help jumpstart your morning. Go ahead, sit down and sip suc-cess.

An Instant A. Beat the Boss.

Bring on the Day.

He expects 1500 copies on his desk first thing tomorrow. He expects the new sales report forwarded to his secretary. Hope he doesn’t expect the best seat in the meeting. Nescafé, the quick, delicious way to get a jump on the day and the boss. With a red cup, it’s never a bored room.

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Media Object ives & Strategies

Objective: Our primary target audience is US men and women between the ages of 18 to 24. A majority are college students or full-time working young adults with a semi-disposable income. The goal is to increase young adult Nescafé coffee consumption, while changing the overall experience of the brand to not only be a cup of coffee but also a creative lifestyle. The Media Mix for this campaign includes magazines, television, radio, internet, sales promotions, smartphone applications, and social media.

Strategies:

Television:

Television usage is prominent among men and women ages 18-24. Due to the high reach, a large portion of the budget will be allocated in television. To con-nect with a younger audience, we will place ads in the following:

Network TV

Family Pretty Little Liars (ABC Family) is a popular series among women ages 12-34, pulling in consistently high ratings. It also attracts a smaller but still loyal male fan base. This is a darker show with a young adult cast, and it’s packed full with scripted drama and surprising twists. Given that the target demographic of this show fits our target group, this is a perfect media vehicle.

Gossip Girl, America’s Next Top Model (CW) are all shows targeting younger audiences that include adults ages 18-34. These shows are on the lighter side and influence women specifically on new trends and fashions.

Monday Night Football (ABC) achieves a large fan following by adult males in our target group. This is the perfect media vehicle to ensure that males of our target group will be reached.

Spanish Language Network (Univision): The spanish-language-speak-ing young adult population is rapidly increasing. Past success in invest-ing in SLN advertisements has proven this to be a great media vehicle.

Estimated Cost: $2,036,600

Spot TV: We plan to purchase spots on local TV programming in 10 DMAs during late fringe, locally syndicated shows. This will help re-tain previous customers and reach late-owl college students.

Estimated Cost: $374,300

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Radio:

Since our target audience encompasses college-age Americans and young work-ing adults, many of them spend time commuting to school or work. Since they are young, creative individuals, music radio stations are a big part of their daily routines. The radio vehicles that we have chosen are:

CBS Radio

Clear Channel Communications

Citadel

Broadcasting

Sirius XM Spanish Estimated Cost: $898,100

Magazines:

Magazines are still a prominent form of information communication among American adults. Magazines such as Cosmo and People Magazine have created a large and loyal consumer audience. For magazine vehicles, we have chosen: Targeting Women:

Cosmo

Glamour People Targeting Men: Sports Illustrated GQ Estimated Cost: $1,050,600

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Internet

The audience that we are targeting views the internet as a way of life. They spend a lot of time on social media sites, and reading online blogs and news sources. This media vehicle reaches approximately 78.3% of the entire US Population (European Travel Commision, 2012). We have chosen to include media vehicles:

Sidebar advertisements:

Cosmo’s online magazine

Facebook

Online Radio:

Pandora

Spotify

Social Media: (virtually free) Nescafé Facebook Page Nescafé Twitter Feed Nescafé Youtube Channel Estimated Cost: $946,000

Mobile promotion

Adults ages 18-24 are heavy consumers of their mobile phones. About 310 million Americans have smartphones (Blodget, 2012). It’s common for smartphone users to download applications related to their interests, be it games, news, music, etc. We will develop an application as a promotional technique for Nescafé. Estimated Cost: $500,000

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Reach & Frequency

Our objective is to achieve a reach of 75% during the initial launch of the campaign. Over the life of the campaign, reach will range from 70-75%. The minimum effective frequency will be 3.4 (see Ostrow Model in Ap-pendix). The Gross Rating Point goal will obtain a 275 GRP at launch and pulse in a range of 238-255 GRPs after launch.

Geography

We are choosing to focus our campaign in the top ten most caffeinated cit-ies in the United States. Specifically: Seattle, WA; Portland, OR; Denver, CO; Chicago, IL; Los Angeles, CA; New York, NY; Miami, FL; Houston, TX; Dallas, TX; and Philadelphia, PA. These ten U.S. cities are statisti-cally known for their high coffee consumption, which makes them prime target audiences for Nescafé.

Schedul ing & Timing

This is a pulsing schedule to compliment consumer interest year round. We will be implementing a “teaser” campaign, guerilla style, on college campuses in the 10 DMAs to raise awareness and interest of our brand by asking consumers to answer a short, anonymous survey, and offering free coffee. The campaign will be launched in September at a goal of 272 GRPs, using traditional media along with non-traditional media to kick-start our campaign before the October consumption peak. In November, December and January, the broadcast schedule will drop to 238. This drop in traditional media GRPs will be made up for in promotional activ-ities. On November 1st, Nescafé Stands will be placed in grocery stores of the 10 DMAs to reach the working consumers while Baristas On-The-Go will arrive at campuses to connect with college consumers.

On January 1st, we’ll introduce our Nescafé App for iPhones and Androids. The traditional broadcast schedule will increase to 255 GRPs in February, March and April. It’ll drop to 238 GRPs in May and June and 221 GRPs in July and August. This schedule follows the pattern of customer consumption based on past records. National reach and frequency minimums will be 55/3.4. Spot reach and frequency minimums will be 69/3.4.

Our campaign will focus on the use of television and radio advertisements. Tele-vision spots will be purchased on Network TV Sports, daytime, early fringe, and late fringe. Radio spots will be purchased during the early morning drive, evening drive, and nighttime dayparts. This will target both college and job commuters. We’ll also take advantage of online radio (e.g. Pandora) and television (e.g. Hulu) advertisements. The Internet integrated advertising will begin in October and con-tinue through the year.

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Strategy 1 : Sales PromotionObjective:

To maintain our current brand loyal customers, increase promotional advertising during the winter months, and to emphasize the speed, ease, and taste of Nescafé.

Strategy:

During specific promotional periods, in-store stands will be placed in prominent grocery stores. We will be comparing the time and quality of Nescafé to a generic Instant Coffee and perform making the coffee for customers. Customers will be offered samples of both to taste the differences.

Strategy 2 : Campus Gueri l laObjective:

To increase the Nescafé experience among college students.

Strategy:

Guerilla coffee stands will carry a large portion in this campaign. Nescafé stands will be strategically placed in our 10 DMAs and offer a quick cup of Nescafé Taster’s Choice. We will prepare a quick online survey on iPads for students to take beforehand to generate the average amount of time students take to make/get coffee currently.

Strategy 3 : Smartphone Appl icat ionObjective:

To increase interest in the brand by using trending technology frequently used by our target audience.

Strategy:

Smartphone Applications will be used to as an innovative strategy to connect with fans. Our goal is to increase interest in the brand by offering an application where fans can create and submit original new instant coffee recipe ideas with given ingredients. At the bottom of the application there will be an embedded music playlist featuring the “Song Of The Week,” focusing on up-and-coming artists. When fans click the playlist, they will receive a free download of the featured song on iTunes.

Strategy 4 : Bar is ta On-The-GoObjective:

To create buzz on college campuses about Nescafé, to emphasize the ease of the product, and to develop interactive communication with college students.

Strategy:

“Baristas” on-the-go” will be a guerilla effort to increase the Nescafé experience among college students. Baristas will walk up to students in a student/study center and offer fresh Nescafé in a red mug. In the student/study center will be a strategically placed Nescafé Informational Table where students can pass by and learn about the barista effort, the Nescafé Plan, and ways to get connected.

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Media Budget Object ive & Strategy

Nescafé’s budget of $10,000,000 will be limited to 10 DMAs. Markets will be determined by the percentage of customer consumption. This will be based on Index numbers provided by Simmons OneView database.

Media Budget Strategy:

10 DMAs were chosen by the following criteria:

- Total men and women consumers ages 18-24 in each market

- Coffee drink category sales in market

- Nescafé brand sales in market

Our Plan:

- $8,500,000 is budgeted for mass media (Network TV, Cable TV, FM Radio, Magazines, Spot TV, Spot Radio, Internet buys) in the 10 DMAs.

- $1,000,000 is budgeted for promotional stands, any seasonal coupons, materials and iPads for the Campus Guerilla Strategy, and free coffee and permits for the Barista On-The-Go strategy.

- $500,000 is budgeted to cover dynamic smartphone application development, free iTunes music downloads, and royalties to artists of songs we feature.

Under budget by: $326,300

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APPENDIX

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REFERENCES

(n.d.). Retrieved from Nestle Roadmap to Good Food, Good Life: www.nestle.com/AboutUs/Strategy/Pages/Strategy.aspx

AdMonkey. (2009, Apr 20). Nescafé Taster’s Choice Paints a Pretty Picture. Retrieved from http://admonkey.org/2009/04/30/nescafe-tasters-choice-paints-a-pret-ty-picture/

Blodget, H. (2012, Sept 13). Business Insider. Retrieved Nov 22, 2012, from Actually, The US Smartphone Revolution Has Entered The Late Innings: http://www.businessinsider.com/us-smartphone-market-2012-9Burn, D. (2009, June 09). Instant Pretension Nescafe Doesn’t Do. Retrieved from AdPulp: http://www.adpulp.com/instant_pretens/

Coffee Research Institute. (2012, Dec 05). Coffee Consumption Statistics in the United States. Retrieved from Coffee Research Market: http://www.coffeeresearch.org/market/usa.htm

Coffetalk: Discover The Benefits of Coffee. (n.d.). Retrieved from Nescafe: www.nescafe.com.my/coffeetalk/benefits_of_coffee.htm

European Travel Commision. (2012, Nov 6). New Media Trend Watch. Retrieved Nov 22, 2012, from Demographics: http://www.newmediatrendwatch.com/mar-kets-by-country/17-usa/123-demographicsFoottit, L. (2011, June 3). Nestle Launches Summer Activities Promotion. Retrieved from Morning Advertiser: UK: www.morningadvertiser.co.uk/Pub-Chef/Nestle-launches-summer-activities-promotion

History. (n.d.). Retrieved from Nestle Global: www.nestle.com/aboutus/history

Hoover’s. (2009, December 16). Apple Computer, Inc. Hoover’s Company Records-In-Depth Records. Retrieved from LexisNexis Academic database. Ad$pender. (2012, Oct 10). Media Mix.Nescafe Brand Study. (n.d.). Retrieved from Scribd.: www.scribd.com/doc/21248912/nescafe-brand-study

Nestlé S.A., C. a. (2012). Annual Report 2011. Retrieved from Nestle: The World’s leading Nutrition, Health and Wellness Company: www.nestle.com/asset-li-brary/Documents/Library/Documents/Annual_Reports/2011-Annual-Report-EN.pdf

Nescafé. (2012, Dec 05). FAQ. Retrieved from Nescafé Taster’s Choice: http://www.tasterschoice.com/products/faqs.aspx

NetAdvantage, S. &. (2005, Dec 12). Nestle SA.

Quality that goes beyond the cup. (n.d.). Retrieved from Nestle: Good Food, Good Life: www.nestle.com/Brands/Coffee/Pages/CoffeeCSV.aspx

Simmons Market Research Bureau. (2011). Simmons OneView: 2009 data.

The Nescafe Story. (n.d.). Retrieved from Nescafe Arabia: www.nestle-family.com/nescafe/english/the-nescafe-story.aspx

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