Dr Pepper Proposal

SPM Agency

Alison Anselmo
Jessica Stephens
Davis Son
Rob Turdiyev
Table of Contents
Introduction………………………………………………………... 2-3

Brand Audit……………………………………………………….. 3-12

Brand Positioning………………………………………….. 3
Brand Equity……………………………………………….. 3-7
Awareness………………………………………….. 4
Preference……………………………………….......4
Usage………………………………………………..4-5
Value……………………………………………….. 5
Relevance…………………………………………... 5
Differentiation………………………………............ 5-6
Vitality………………………………………........... 6
Emotional connection…………………………….... 6
Loyalty………………………………………........... 6-7
Previous Campaign/Agency of Record..…………………… 7-11
Brand Audit Overview……………………………... 11-12

Cultural Brief……………………………………………………… 12-15

Myth treatment……………………………………………... 12
Myth market………………………………………………... 12-13
Cultural contradiction…………………………………….... 13-14
Populist world/authenticity………………………………… 14-15
Charismatic aesthetic………………………………………. 15

Dr Pepper Campaign……………………………………………… 15-28

Tagline……………………………………………………... 16
Packaging………………………………………………….. 16
Campaign Particulars………………………………………. 16-18
Goals…………………………………………….................. 18
Budget……………………………………………………… 18
Print Venues………………………………………………... 18-19
“Life in a Can” ……………………………………. 18-19
TV Spot…………………………………………………….. 20-26
“Remember” ……………………………………… 20-26
Other Marketing ………………………………………........ 27-28

References…………………………………………………………. 29

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Introduction

The taste of Dr Pepper is unmatched. Its 23 delicious flavors have

withstood the test of time, as it’s well-known to be the oldest soft drink

in the world. But we feel Dr Pepper tells a story that goes well beyond the

qualities of great taste and tradition…

The fight in trying to take a firm hold of prospective customers is a

never-ending, uphill battle in any industry. This is a fight that takes

place in the product market. It involves reaching targets based on market

research, and is in competition with other big-name companies who are

fighting for the same product market using more or less the same

research. The flaw in this system of reaching potential customers is that

it denies what people feel is most important about the things they buy:

the story they become a part of when they use, consume, and talk about

the product. When this most important aspect of understanding

consumers is considered, you are considering a Myth Market.

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The fight for a Myth Market is one that’s not really a fight at all. If the

story being told is not being told by anyone else, you own that space.

SPM Agency has found the space where Dr Pepper belongs. We have

found its Myth Market.

This proposal outlines the foundation in which Dr Pepper’s Myth exists.

We will cover the marketing strategies that are currently in place,

establish the cultural brief in which the core of Dr Pepper’s story is set,

and propose the advertising campaign that most effectively executes that

story.

I. Brand Audit

Brand Positioning

The U.S. beverage market is a highly competitive and crowded field. In

order to command market share, a brand must be able to differentiate

itself from its competitors. To make this differentiation, Dr Pepper has

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positioned itself as “the world’s unique soft drink” since it is comprised of

23 flavors. Its current slogan is “One Taste and You Get It” (Dr Pepper

Snapple Group, 2008). Dr Pepper currently controls 15% of sales volume

in the beverage market and has a market value of $6.5 billion (Ody,

2008). It has a deep-rooted following in the South because it first started

as a regional Texas soft drink.

Brand Equity

A brand is judged by many different facets that determine the value of

the product, which range from the loyalty of consumers to the awareness

of the product in the marketplace. All of these things combine to give the

market a set value on a brand. We have analyzed these items below in

order to assess Dr Pepper.

Awareness: Dr Pepper currently holds the place of 3rd in market share

for the U.S. They fall behind major players Coca-Cola and Pepsi which

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account for 74% of the market. Dr Pepper’s Brand Equity Index is 162

which is 1.6 times the normal rating (Young, 2008).

Preference: With consumers embracing the current health trends, Diet

Dr Pepper was named one of the top 10 soft drinks in 2002 due to health

conscious attitudes. This market is predicted to continue its growth world

wide. According to MarketLineResearch, “The global diet food and drink

market is forecasted to reach $112 billion by 2009.’Light' versions of

snacks and desserts have experienced strong growth. It is estimated that

about 40% of consumers in the US are conscious of a product's calorie

and carbohydrate content.”

As well as Diet Dr Pepper’s growth among users, Dr Pepper is one of the

few non-diet soda brands to gain market share in 2007. In 2008, net

sales were $1.56 billion for the second quarter of 2008, compared to

$1.54 billion for the same period of 2007 (MarketLine, 2008).

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Usage: Dr Pepper Snapple, which is based in Plano, Texas, generates

89% of its revenues from the U.S. market and 80% of its sales volume

from sodas (Ody, 2008). According to Mediamark Research, 50% of all Dr

Pepper consumers are male and 50% are female. 18.3% of users

graduated college, 30.7% of users attended college, 31.7% of users

graduated high school and 19.3% did not graduate high school. The

majority of Dr Pepper consumers are 25-34 and most are employed full

time. The majority of users are white with this subgroup comprising

81.8% of all users, followed by African-Americans and Latinos. Dr Pepper

has seen its growth rise 5% annually since 1987 (Young, 2008).

Value: Dr Pepper has a market value of $6.5 billion. Its revenue in 2007,

was $5.7 billion, this represents an increase of 21% for the year (Ody,

2008). Factors that have been attributed to this growth include Dr Pepper

Snapple Group’s attractive product mix which offers flavored carbonated

and non-carbonated beverages like tea juice and juice drinks. “The

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company is now strategically focused on its growth strategy, which

includes expanding distribution and penetration of its brands throughout

North America. While the overall CSD market is declining in the US—what

Young refers to as “cola fatigue”—the flavored segment continues to

grow, which puts Dr Pepper Snapple in an enviable position in the ever-

challenging soft drink market (Young, 2008).

Relevance: With the growing trends in the food industry towards health

concerns and targeting a growing Hispanic audience. Dr Pepper lists as

its goals for 2008 to “expand Diet Dr Pepper growth and develop coastal

and Hispanic markets” (Young, 2008).

Differentiation: Dr Pepper prides itself on their unique blend of 23

flavors that make up each can of soda. They claim a taste that can’t be

identified or matched by any other soft drink company. They also pride

themselves on offering new and inventive products like their new energy

drink, Venom and Snapple’s antioxidant water. The Dr Pepper Snapple

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group is the number one flavored carbonated beverage company and

with products like Diet Crush and Diet 7-Up they have seen their diet

flavored beverages grow as consumers get tired of diet colas and water

(Young, 2008).

Vitality: Dr Pepper is the oldest soft drink available in the U.S. It was

first sold in 1885 in Morrison’s Old Corner Drug Store in Waco, Texas and

was introduced to millions in the 1904 St. Louis World’s Fair (Dr Pepper

Snapple Group, 2008). Dr Pepper continues to see its brand grow. It has a

current future purchase intent of 41% among consumers, a growth of 9

points in over a year (Young, 2008).

Emotional Connection: Dr Pepper in recent campaigns has tried to

make an emotional connection to consumers through its link to music. Its

2005 ads for Diet Cherry Vanilla Dr Pepper featured The Muppets “Mah

Na Mah Na”\and Queen- I Want it All. In 2008 they used the Cheers

Theme Song, “Where Everybody Knows Your Name” (Zmuda, 2008).

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Loyalty: Dr Pepper is the oldest major seller of soft drinks and has a

strong following in the South. 41.2% of Dr Pepper’s users live in the South

and see it as a drink that represents them. Texas, Oklahoma, Louisiana,

Arkansas and Missouri, average around 400 per caps [8-ounce servings

per capita per year] while the Northeast and West Coast per caps are

down around 9 (BeverageWorld).

In the 2008 soft-drink brand keys customer loyalty engagement index

Dr Pepper ranked 5th behind Pepsi, Mt. Dew, Coca-Cola, and 7-Up. Diet

Dr Pepper in the same index was ranked 4th behind Diet Pepsi, Diet Coke,

and Diet 7-Up (Brand Keys, 2008).

Current Campaigns

Television

Dr Pepper’s current television campaign is titled, “Trust me, I’m a

Doctor.” The campaign so far consists of two different television spots.

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The first one features Dr. J (Julius Erving) who is tossing ice cubes into a

glass much like one would do if they were to throw a basketball. He tells

viewers if they drink Dr Pepper slowly they will better experience its 23

flavors. The second spot features famous TV doctor, Dr. Frasier Crane on

his radio station telling listeners to drink it slowly to experience the 23

flavors (Young, 2008).

Radio

Dr Pepper’s radio ad consists of the following two spots. The first one is

titled, “Explorer Man” – where a man is put in the wilderness with minimal

supplies and a can of Dr Pepper. It goes on to say that Dr Pepper’s “flavor

goes deep.” The narrator says that “with 23 flavors in every sip means

there is more to explore.”

In the “Home Sweet Home” spot sweets welcome Diet Dr Pepper to the

dessert aisle. The tagline is “So rich and decadent it belongs in the

dessert aisle” (Young, 2008).

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Print

The print ads that Dr Pepper is currently running are for the Diet Dr

Pepper product and it is centered on the tagline, “Nothing Diet About It.”

One of the ads features a smiling woman with sprinkles on her lips,

holding a can of Diet Dr Pepper. The second ad features a line of

cupcakes with a can of Diet Dr Pepper in a cupcake paper cup (Young,

2008).

Internet

Dr Pepper’s internet advertising mainly focuses on the use of their own

website where viewers can engage in a variety of activities. One section

focuses on downloads where one can download retro gallery wallpapers,

screensavers and can even customize their own wallpaper.

Games

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One of the other main features on their website is interactive games that

visitors can play. One game is an action arcade game titled Dr Pepper

Speedway Rush a racing game where you pick up Dr Pepper cans along

the way for speed and avoid cola cans that slow you down. The second

category of games on their website is Sports Arena games. One game is

Throw For Dough 3.0 where one throws a football into a moving giant Dr

Pepper can. One also must flag down the Dr Pepper salesman who holds

the target still for you.

The other game, Hangfan— is a football-related word game which

guesses are held up by the crowd in the style of hangman. The last

category of games is Mind Games. The site features puzzles where you

put together pieces to form one of two posters featuring Dr Pepper

slogans: “There’s nothing diet about it” and “There’s more to it.” The

game, Sweet Swap where you click on various sweets to rotate them into

rows of 3 or more and get extra points for aligning cans of Diet Dr

Pepper and Dr Pepper Matchcaps where you click on various bottle cap

designs to rotate them into rows of 3 or more.

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The site also features a timeline with a big focus on their history right

now which shows product and advertising through the years

(drpepper.com).

General Promotions

Guns N’ Roses

Dr Pepper has also gained a lot of attention for one of their general

promotion campaigns. The company promised that if Guns N’ Roses

released their new album Chinese Democracy in the year 2008 everyone

in America will get a free Dr Pepper. The album has been in the works for

over a decade. When Guns N Roses did announce that they would be

releasing the record, Dr Pepper posted a link on their website for 24

hours allowing people to register for a coupon for a free Dr Pepper. This

has led to some controversy as the website server crashed and Axl Rose

has filed a lawsuit against Dr Pepper for using them in a marketing

campaign without permission (Cohen, 2008).

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The Dr Pepper Bridesmaid

Kelly Gray, a hairdresser from Virginia Beach, put up an auction to select

a bridesmaid for her wedding on April 19, 2008. Dr Pepper placed the

highest bid for the auction at $5,700, and went further by offering her

$10,000 and supplying all of the beverages for her wedding. This was

revealed to her and the American public on the popular morning show,

“Good Morning America.” Dr Pepper Snapple told Gray it would launch a

Web site to find her a bridesmaid or provide a surprise guest to fill the

slot (Hamptonroads.com).

The Montauk Monster

The Montauk Monster was an unidentified carcass of a beast that washed

up on the shores of Montauk, New York in July 2008. There was intense

buzz in the media and on the internet surrounding the mystery of this

creature which was never identified. Dr Pepper took advantage of this

intriguing story by placing a bounty on this creature as part of a

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marketing strategy. The Monster was never accurately identified nor was

it retrieved for the offered bounty (cryptomundo.com).

Agency of Record

Dr Pepper Snapple Group had been with WPP Group’s Young & Rubicam

for almost 40 years. The account was up for grabs in March 2008

(unbeknownst to Y&R). Cliff Freeman, Y&R, Droga5, and Deutsch LA bid

for the account, where it finally went to Deutsch LA (Zmuda, 2008).

Brand Audit Overview

Dr Pepper’s current advertising is all over the place. Its marketing efforts

are spread too thin, and are not telling a story its market can appreciate.

The TV spots feature a play on the word “Doctor” by using different

celebrity “doctors” (Dr. Frasier, Dr. J. The “Doctor” characters are

recognizable parts of popular culture, but each reach out to different

audiences. The ads don’t really give people a personal connection with

the brand. The radio ad is boring, and doesn’t go along with the doctor

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theme; it is something entirely different. Regular Dr Pepper doesn’t seem

to have any current print ads. The Diet Dr Pepper ads are taking on a

completely separate approach, as well; the focus is on the fact that

although it is diet, it still tastes just as sweet as other treats. Their online

features follow yet another path, focusing on how old the brand is and

how it has changed through the years. In order to have more of a

dedicated following, Dr Pepper needs to focus on one powerful group and

should reach out to them in a way that makes them loyal to the brand

because it truly relates to them and makes them feel good.

The Dr Pepper drinker, like most intelligent consumers, doesn’t buy into

commercials. They buy into stories they want to believe in. They want to

be a member of a group; a group that knows what they represent. The

marketing strategies used are very sporadic. It’s apparent that Dr Pepper

is trying to take advantage of irrelevant material that seems to be

carrying a lot of buzz and riding the wave by using it as a marketing

opportunity. Although SPM Agency is always looking for

advertising/marketing windows, we will not do so by sacrificing the

authenticity in what we believe Dr Pepper represents.

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II. Cultural Brief

Cultural Brief Statement

Dr Pepper appeals to the over-worked young professional who is

dissatisfied with the overly materialistic world, which has made him/her,

lose sight of the simple joys of life.

Myth Market

We titled our myth market, Generation “Y”ired. This group of people is

made up of young professionals who are about 24-35 years old. They are

never without their trusted technology be it there laptop, mp3 player or

blackberry cell phone. They heavily rely on these tools to be able to be in

constant communication with friends and check up on work but realize

that this lifestyle has invaded their personal life and eroded some of their

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values. They are burned out by the fast-paced, long-hours and

demanding work schedule that they can’t seem to leave behind. They are

nostalgic about their old family road trips they went on as kids because it

focused on the simple pleasures in life. Mom and Dad would pile

everyone into a car and they would drive to a campsite and there were no

distractions of iPods, cell phones and laptops. There was more of a focus

on the family, nature, and exploration. Generation “Y”ired feels like they

have lost sight of themselves and their values, and are looking for a way

to recapture their ideals. They want to find an appropriate balance of

work, family and friends and they realize that in order to do this they

need to disconnect with the lifestyle that they have become dissatisfied

with.

Cultural Contradiction

Our cultural contradiction is that the economy is in shambles. When

Generation “Y”ired was first entering the workplace there was this big

technology boom and there was an increase in demand for young,

talented and determined employees who knew how to use all the

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technology that was coming out. Currently, we have entered a recession

and workplace layoffs are growing at an alarming rate. This generation

has also seen the deterioration of family values and the nuclear family as

divorce has become a common theme in our society. Many in Generation

“Y”ired are children of divorce and while they have some skepticism

towards the institution of marriage they still would like to be able to be

happily married. Generation “Y”ired has been told by society to believe

that by gaining material goods one becomes happy. They are realizing

that this has proven to be untrue and that all of their material goods just

add clutter and are another distraction in their lives toward achieving

happiness.

Populist World/Authenticity

Our populist world is focused on nature and simplicity. It revolves around

being with the people you love, who are your friends and family exploring

the real America. One filled with beautiful national parks and scenic

journeys. It is about realizing that the corporate lifestyle is overrated and

that true happiness can be easily achieved through the simple actions of

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a hike or building s’mores around a campfire. It is the realization that the

things that really matter in our lives are already around us and we just

need to wake up and see it. It is a place of no distractions, where

technology is scarcely used or relied upon. In this space there are no

deadlines, conference calls, or work functions. Overall it is about

simplicity, one where you are free of the distractions that might have

been holding you back.

Authenticity

We believe that Dr Pepper can create this populist world because of its

background. It is not Pepsi or Coke which own the carbonated beverage

industry. Dr Pepper offers consumers a unique blend of 23 flavors that

can’t be duplicated or replicated. Dr Pepper is also the oldest soft drink

and was founded in small town America. They can speak and promote

traditional values because they were founded under them and have been

a valuable cultural component since they first hit the market in 1885.

They are not your traditionally corporate business, they have their roots

as starting in a drugstore and their formula was not crafted by business-

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savvy, opportunity seeking scientists but by a regular Joe, someone who

just wanted to produce a high quality, refreshing and unique beverage.

Charismatic Aesthetic

Our charismatic aesthetic is that Dr Pepper allows the consumer to

escape the daily distractions and commitments of their life and lets them

escape to a place where they are able to re-focus and re-evaluate their

lives. It gives them a break from the hectic and fast-paced lifestyle they

live and allows them to take a couple minutes to just enjoy their drink,

relax and find peace. We coined the tagline, “Life Unplugged” to really

capture that essence. We will also be bringing back Dr Pepper being

bottled in glass bottles because it gives it that 50’s charm. We chose to

do this because when one thinks of the 50’s they think of traditional

values like the importance of family and it brings back a time when the

world was simpler.

III. Dr Pepper Campaign

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“Life unplugged”

This is Dr Pepper’s new tag-line. It places in a nutshell the “Y”ired

Generation’s resentment toward the increasingly wired, modern world of

business and money. To unplug their lives means to keep things simple

and go back to the basics.

Packaging

Dr Pepper’s packaging will show only the vintage logo and legal

necessities like nutrition facts and ingredients. There will be no tag line,

no flashy colors or graphics, nor any other unnecessary clutter that will

detract from the story we are telling the consumer. To our myth market,

fancy design represents conglomerate companies’ attempt at seducing

consumers. Fanciness is something that represents the world in which he

currently lives in. It’s the non-crowded simplicities that he appreciates.

He has an intense, hidden desire to get back in touch with what he knows

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is important and meaningful, so a fancy, brilliant design is too close of a

reminder to his bleak, professional life. Our theme is “non-design.”

Campaign Particulars

Since we are targeting the “Y”ired Generation, we decided to target the

following television programs because it has been shown that the most

popular television shows for women and men 24-35 are general dramas,

reality shows and situational comedies. With this in mind we have decided

to place television commercials on “The Office,” “The Colbert Report,”

“The Daily Show with Jon Stewart” “Weeds” and “It’s Always Sunny in

Philadelphia.” These shows relate to our target market because they make

fun of the corporate lifestyle, are satirical and express the frustrations

that Generation “Y”ired feel toward the current economy, their jobs, and

American culture.

TV

Avg. cost per 30 second commercial

Prime Time (8-11p.m) = $130,325

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Early News (5:30-7:00) = $45, 650
Late Night (11:30 – 1:00) = $45, 975
(MediaMark Research, 2008)

Using the chart above about average costs per 30 second commercial, we

have decided to place ads in each show once a week for an entire year.

Magazine Placement

Since our target heavily reads magazines as a leisure activity. We have

decided to place ads in the following publications throughout the year.

We chose magazines that best targeted Generation “Y”ired since they

have high readership among 24-35 year olds. We will place an ad, once a

month in each publication.

Magazines Year Freq circulation Full Page 4 color print ad

Time 52 3.4 mil. $ 241,350

GQ 12 932,000 $ 103,425
National 12 5.06 mil. $ 204,000
Geographic
Newsweek 52 3.14 mil. $231,525
Glamour 12 2.62 mil. $161,000
Men’s Health 12 1.8 mil. $149,000
Sports Illust. 52 3.25 mil. $320,000

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Cosmopolitan 12 2.9 mil. $195,800
(MediaMark Research, 2008)

Goals

Through the use of our TV commercials, print advertising and recycling

bin sponsorship we hope to achieve the following goals:

• Increase brand loyalty rating by 30 points in 1 year

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

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

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

Budget

• TV =$ 25,112,100

• Magazines = $19,273,200

Total: $44,385,300

Print Ad: “Life in a Can”

In staying faithful to simplicity, our print ad rejects high-end graphics

and gloss; clutter is what Dr Pepper is trying to avoid. “Life unplugged”

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tells the Dr Pepper drinker that for the amount of time it takes to drink it,

they can be a part of a world in which social pressures, work, and the

economy cannot touch them.

In consuming Dr Pepper, Generation “Y”ired is committing to the

fundamental values they wish to represent: family, togetherness, and

simplicity.

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TV Spot: “Remember”

Generation "Y"ired’s TV Spot Character:

Character: “Jack”

Jack is a white, 28 year old accountant. Although he is successful and an

active associate in a large firm, he doesn’t feel good about it; he feels

guilty and tired of the contemporary world, and feels like he’s “out-of-

touch” with the natural world. He’s stressed and overworked from the

clutter of his professional life (work, cell phones, schedules, projects,

etc.). He misses his childhood because it was a time when he didn’t feel

the stresses he feels now. His intense desires of simplicity, and

resentment toward the modern world are encapsulated in old family

rituals of outdoor recreation.

The story of Jack matters to our myth market. He is relatable because he

is overwhelmed and restricted by a tight schedule at work. Taking

projects and assignments out of his office and into his home on the

weekends, he is exhausted. The clutter of communication media he has

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to deal with on a day-to-day basis makes him resent the fast-paced

world, and distracts him from having a moment to reflect on and evaluate

his life on personal terms.

For Jack, Dr. Pepper represents a space of being with his family growing

up. And in drinking Dr Pepper, he goes back to this time of worry-free

youth for just a moment.

The amount of dialogue between Jack and his family is held to a

minimum, as too much dialogue adds noise that’s unattractive to our

Myth Market. Besides, Jack and his family, especially him and his father,

don’t need extensive dialogue to know that they share a strong bond.

Tone

The tone of voice for the TV spot is serene, as it provides a chance for the

peaceful moments of Jack’s childhood to come back to him. It should

make the viewer nostalgic of his own childhood. And it should remind

the viewer of endearing moments with his own family; moments that he

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can only now truly appreciate.

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 We also decided to team up with National Parks and sponsor

recycling cans at the top 15 most visited sites. Our advertisement on the

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bin directs users to visit our website where they can submit their road

trip photos for a chance to win a Winnebago Sightseer RV. We thought

this would help inspire Generation “Y”ired to take their own journeys to

help them get unplugged and reconnect with their families. It also ties

together our print and TV spots.

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