1. Marketing Objectives

Fruithies is a new Australian brand that will operate on the Australian soft drink market with the

main product being ‘smoothie,’ a blended juice made of different fruits.

The Australian soft drinks market generated total revenues of $9 billion in 2009, representing a

compound annual growth rate of 3.3% for the period spanning 2005-2009 and is expected to reach a

value of $10.5 billion by the end of 2014 (Datamonitor, pg.8). Carbonates are the largest segment of

the soft drinks market in Australia, accounting for 60.4% of the market's total value (Figure 1). The

juices segment accounts for a further 15.7% of the market. The biggest players on the market are

more focused on carbonates segment, making this segment unattractive for new and small

companies (Figure 2).

This situation opens an opportunity for other companies to enter niche categories, such as smoothies

(Datamonitor, pg.15). The category is predicted to grow and become more attractive because of the

existing trend of the consumers preferring healthier products containing less sugar (Datamonitor,

pg.16). Young and old families with children are the main consumer segment for soft drinks

(Cartelle, 2008, pg. 3). However, at present time low proportion of pupils eat fruit daily and the

relatively high proportion drink carbonated soft drinks daily (Vereecken, Inchley, Subramanian,

Hublet, & Maes, 2005, pg. 229). The awareness of this problem is growing in the society and soft

drinks that are as convenient and tasty as, but healthier than the carbonated soft drinks will be

appreciated by the customers, health conscious in particular (Datamonitor, pg.16).

Fruithies will target health conscious families with children in Australia. The size of the market is

about 5,2 million people. The product will be positioned as the healthy, tasty and convenient

alternative to the existing carbonated soft drinks and fruits, but more expensive than the

competitors. As long as the brand and the product are new, the communications will be focused on

building awareness and the company image, enhance subscription, purchase and repurchase actions.

More specifically, objectives of the communication plan with the budget of $1 million for the

following year are:

Brand awareness – 79% of the target market

Website/facebook/twitter subscriptions – 12,000

Sales - $30 million AUD

To achieve the marketing objectives, Fruithies will employ all elements of the promotional mix.

The promotions will be integrated and focussed on providing the information about health benefits

of the product, its superior taste and convenience to use, creating preference over competitors and

initiating a trial of the product. Soft drinks are low involvement products and customers usually

consider them as habitual products. They conduct little to no internal or external research because

they already have an evoked set of brands that can satisfy them. To draw attention to the new

product, a disruptive strategy will be used. The main goal of the strategy will be drawing the

customers’ attention to the new product and triggering customers to redetermine the brands on the

market and determine their evoked set.

which will include the slogan, “Who knew healthy could taste so good?” The slogan informs the

target market about the benefit of healthy ingredients while providing a secondary benefit of great

taste. The message will be aiming at the “cognitive-affective-conative” attitude sequence. The

health product attributes are linked with the consumers health benefits. The benefits will be

connected with the customers values such as wisdom, being a good parent, through the leverage

point stating that the healthy product can be tasty.

Advertising. As long as Fruithies is a new brand with a new product, it is not positioned in the target

market mind. The market for Fruithies is very young (the product life-cycle, not age of the

customers, is meant here) and customers will need information about the quality, benefits and other

features of the product. While the effects of word-of-mouth regarding Fruithies are not yet

established, customers in the young markets tend to be motivated to seek the information about the

product and the advertising plays the most important role in creating awareness and learning the

customers (Grunert 1996). In the further product life-cycle stages the intensity of advertising will be

eliminated, because the effectiveness of advertising declines in more mature markets and other

promotional tools should be employed instead (Tellis & Fornell 1988). Therefore, S-shaped

advertising sales/response function is expected.

During the first year Fruithies will need to provide the target market with a strong incentive and a

compelling argument to buy the product rather than to evoke positive emotions (Dens & Pelsmacker

2010). Buying a new unknown product is usually associated with high perceived physical, financial

and social risks and customers perceive the factual information presented in the ad as more useful

and valuable than the emotions evoked (Olson and Zanna 1993). The advertisements will be

focused around the key benefits and features of the product, which will need to be highlighted for

the better cognitive effects. Also, ads will show the current problem associated with the current soft

drinks consumption and how it can be solved by Fruithies (Dens & Pelsmacker 2010). However, it

will give a negative frame to the ads and will be applied only while the target market is young.

In order to effectively embody these features characteristics, a comparative type of advertisement

will be used. The health, taste and convenience benefits of Fruithies will be compared with those of

the main competitors (the leading carbonated soft drinks that are already positioned in the customer

mind). Fruithies will benefit from this comparison, because new brands are faster and better

positioned when they are positioned against the well-established brands (Grewal et al. 1997).

Sponsorship. Fruithies will use sponsorship, as a powerful tool for reaching the target market and

drawing attention to the new brand (Verity 2002). The promotions are targeted toward the health

conscious people who tend to be also environment conscious and support sustainable products and

living (Robinson & Smith 2003). Therefore, sponsorship organisations involved in protecting

environment and promote sustainable living will benefit Fruithies by creating awareness first and

building positive attitude towards the brand and brand preference later (Verity 2002).

Sales promotion. Sales promotions will be used to disrupt the target market’s habitual buying

behaviour, draw attention to Fruithies and trigger the first trial (Schindler 1993). Freebies and POS

displays will be used in-store; they will have predominantly hedonic value, because customers

perceive these gifts as more valuable than those with utilitarian value (Ailawadi et al. 2001). The

out-of-store sales promotions, such as contests, will increase the customers’ involvement with the

brand and thereby, build better knowledge about the product. Price discounts will not be applied,

because although they may increase sales in a short run, the brand equity deteriorates dramatically

and the customers tend to buy the product only when the price discounts are in place (Simonson et

al. 1994). At the same time the non-price sales promotions will have a longer effect and will assist

in building and enhancing the brand image and loyalty (Huff et al. 1999).

Personal selling. Fruithies will organize in-store product demonstrations in order to create the brand

awareness and trigger the unplanned impulse purchase (Quelch 1983). The demonstration will be

held near the soft drink shelves so that people going to buy a soft drink from their inert

consideration set of soft drink brands will be intercepted by the promotion. Customers will get all

information about benefits of the product and will be offered to make a free trial. As a result,

customers will become aware of the product, knowledgeable about it and will tend to buy Fruithies

and/or establish a positive word-of-mouth effect sharing their experience with other people (Abratt

& Goodey 1990).

Direct marketing. The contests and special offers will be communicated via direct marketing with a

goal of generating a direct response to the promotions. Fruithies will be collecting a mail list of the

target market during the product demonstrations, website registrations, and requests from the

customers and will buy a ready mailing list from partners. Customers contacted directly will feel the

personal touch and will tend to become brand loyal more than customers communicated in the

“shotgun” broadcast manner (Stone & Jacobs 2008).

Integration. All elements of the promotional mix will be highly integrated…

Media Mix

The media mix will support the strategy and the promotional mix and three types of media vehicles will be used.

On the first stage, we are employing mass media to build awareness for the Fruithies brand. Mass media reaches a larger audience and is most effective in creating awareness for new products or brands, like Fruithies.

Then, Fruithies will employ direct response media tactics to interact and build relationships with the customer base. The ability of the company to continue to reach the target market and allow for consumer interaction and involvement will create customer preference and build customer loyalty.

Finally, during the whole year POS media will be used. Point-of-sale media is important in attracting customers by reinforcing previous advertising exposure at the decision making stage and promoting product switching. This type of media is effective with low-involvement products such as Fruithies and provides a platform for new and uncommitted members of the market to gain exposure or experience the Fruithies brand.

Mass Media

Magazine Ads | Goal: create awareness in 13% of the target market

Fruithies will purchase a half-page advertisement in Better Homes and Gardens magazine. These ads will be placed in the family and lifestyle sections. Our main target audience is families with children in the household who maintain a healthy lifestyle focus. These ads will be comparative, showing the health and taste benefits of Fruithies over traditional sodas. To achieve the goal of creating the brand awareness frequency of 3.8 is needed (Ostrow). The reach of this media vehicle is 688,000 for people with kids in the household and Fruithies ad will appear in the magazines 5 times to compensate the probability of the target market skipping one of the 5 issues.

Rich Media Ads | Goal: create awareness in 6% of the target market

Fruithies will advertise on the Yahoo 7 website with a rich media rollover ad that is comparative and shows a visual comparison between an unhealthy, unhappy soda drinker and a healthy, happy Fruithies drinker. The ads will be placed in the family and lifestyle sections and target mothers, fathers, and anyone seeking a healthy lifestyle. The ad will link to the Fruithies website where more information about Fruithies can be found.

Minor Sponsorship-Junior Masterchef | Goal: create awareness in 27% of the target market

Fruithies will be a segment sponsor for three episodes of Junior Masterchef on September 17th, 2011. The sponsorship will include product placement where the contestants have a “Fruithies break” and consume the product on camera while one of the judges makes a casual comment about

how much he likes Fruithies. The sponsorship will also include a co-branded advertisement with Coles later in the show where the audience is told that Fruithies can be found at their local Coles Supermarkets and also mention the “YOU name the flavour” contest at our website. This component of our campaign will attempt to leverage the trust and emotional attachments that the audience feels toward the contestants, hosts and Masterchef brand. Watching them use the product will leave a stronger impression and allow for a lower intended frequency number. The product placement is the first exposure, and the co-branded advertisement with Coles is the second exposure. The second exposure also uses brand leverage by combining the Fruithies name with a trusted grocery store chain. The message will be intertwined with the action of the show and will provide a less cluttered environment for audience attention and recall. The goal of this medium is to reach families with children who watch this show. There are 1.7 million people on average who watch this show, and we expect that 50% of them, or 850,000, are families with children.

Radio Ads | Goal: create awareness in 26% of the target market

Fruithies will purchase radio advertising during “The Family Show” on 96.5 FM in Brisbane, Hope 103.2 in Sydney and Light FM 89.9 in Melbourne from 6-9 AM during the “morning drive time” daypart. “The Family Show” targets families with children and we hope to capitalize on this segmented audience. Fruithies will purchase DJ read advertising to capitalize on the relationship that listeners have with the on-air personalities (Stone & Jacobs, 2008).

Our purchased slots will be placed strategically in the month leading up a Fruithies sponsored event, mentioned in the event sponsorship section. Fruithies will capitalize on building brand awareness with these ads and culminate with an interactive event experience. Frequency for radio ads must be high to break through the clutter found in radio advertising, and the frequency goal for this medium is 5.2 (Ostrow). Our promotion will run once per each hour of the show, 5 days a week. Leading up to an average event, the Fruithies ad will run 60 times on each station for a total of 180 ads over the three markets. The goal is to reach families during early morning activities, and attaining such a high frequency will require heavy advertising.

96.5 has a reach of 460,000, 103.2 averages 522,000 and Light FM has a reach of 672,000 listeners per month. The aim is to reach 50% of those listeners, for a total reach of 827,000. The goal of these advertisements is to convince customers to attend local events that are sponsored by Fruithies, and because of this, the ads will only be played on radio stations that are in the same areas as the Fruithies events.

Sponsorship Marketing | Goal: create awareness in 7% of the target market

Fruithies will be a sponsor the HBA Around the Bay in a Day event in Melbourne on Oct 17, 2011 the Bridge to Brisbane event on the August 30th, 2011, and the Sydney Marathon on September 20th, 2011. Fruithies will have branding and signage at the show, provide free samples and interact with customers in a similar way to the farmers’ markets experiences. These events will provide a platform to interact with healthy individuals and the families that support them.

Direct Response Media

Fruithies Website/ E-Newsletter | Goal: 50 000 visits per months, 5 000 subscribtions

The Fruithies website will be created (www.fruithies.com) which will provide information about Fruithies, interesting and fun facts, and where patrons can purchase Fruithies. The website will encourage interaction with a Fruithies contest, where people can suggest the next Fruithies flavour. Visitors can also subscribe to the Fruithies e-newsletter, called Fruithies Newsies. It is a healthy lifestyle newsletter that has a family focus and offers up useful articles and tips. The contest will have a Grand Prize of a trip for four to the Whitsundays. The purpose of the contest is to build a relationship with the customer and create an interaction and a sense of alignment with brand.

Facebook/Twitter Campaign | Goal: 7 000 people who like us/followers

Fruithies will launch the “YOU choose the flavour contest” Users can tweet or nominate a new flavour combination on our facebook page or website. Five will be chosen and voted on, and the winning combination will go into production as our new flavour. This interactive marketing campaign will create more of a push-pull relationship with our consumers. It is a relationship marketing tactic that will build a report with customers and help them to identify with the Fruithies brand. The winner will receive a trip for four to a resort in the Whitsundays.

Point-of-Sale Media | Goal: $30 000 000 AUD

Personal Selling

A representative for Fruithies will be placed in Coles grocery stores in within 25 km of the CBD of Brisbane, Sydney, and Melbourne. Fruithies will also lease space at local farmer’s markets around the cities. The representative will be flanked by fruit-themed costumed characters to appeal to children. Representatives will interact with patrons and provide free samples and product information. Fruithies reps will attempt to capture customer information for future e-newsletters and other direct marketing campaigns.

POS Promotion

Display case

Fruithies will place display cases at smaller retail shops that show the Fruithies logo and slogan. The Fruithies display case will have bright attractive colours and be placed on the counter to attract children and adults. This marketing tactic is aimed to attract impulse purchases from our target audience. Fruithies sales reps will also provide promotion contests which award stores for having the highest sales of Fruithies with prizes.

Magnets

Fruithies will have free refrigerator magnets available at every retailer and event that Fruithies attends. The magnets will be colourful and funny to appeal to children and families and provide a platform to advertise to our target audience on a daily basis in their homes.

Budget

We will begin our campaign with the creation of the website facebook page and twitter account- to be completed by May 1st, 2011. This is so all other marketing activities that follow can direct consumers to those places and ensure that our customer interaction platforms and vehicles are in place before we promote. This stage will also include collaboration with a creative agency to formulate ideas about integrated branding attributes and creation of logo, packaging etc.

The second stage of our campaign will include event sponsorship, radio ads, magazine ads, and rich media ads. This integrated approach will attempt to build brand awareness and use certain media vehicles (i.e. radio) to promote other Fruithies vehicles (i.e. event sponsorship). All media at this point including ads, signage etc. will direct potential customers to the website to begin building relationships.

The third stage is the largest part of the budget, which includes our appearance at Junior Masterchef and our relationship with Coles. At this point, Fruithies will build on brand awareness and attempt to influence purchase decisions through product demonstrations and customer interaction with our Fruithies contest. All activities will be evaluated for effectiveness.

Budget

Total Market: 3,185,836Mass MediaVehicle Reach % of market Frequency Number of runs Price per ad/CPM Total price Start Date Finish DateMagazine 688,000 22 % 4 5 16,097 80,485 30/6/2011 1/1/2012

Radio 827,000 26 % 5 180 500 90,000 1/8/2011 17/10/2011

TV 850,000 27 % N/A 1 200,000 200,000 17/9/2011 17/9/2011

Sponsorship 215,000 7 % N/A 3 35,000 105,000 30/8/2011 17/10/2011

Rich Media 200,000 6 % 52 10,400,000 5 52,000 30/6/2011 30/6/2012Sub Total 527,485Creation of the adsMagazine 500Radio 1,000TV 20,000Sponsorship 1,000Integrated message (brand attributes, style, etc) 20,000Sub Total 42,500Direct responseContest Prize 5,000 18/10/2011Website creation 2,000 1/5/2011SEO, website maintanence, FB & Twitter 15,000 1/5/2011Sub Total 22,000

POS Media + Product Demonstrations 18/10/2011 1/1/2012

Coles (690) 390,000Evaluation (Survey) 17,000Total 999,985

Evaluation of Performance

We will test the content of the advertisement and the possible impact on potential customers as well as the effectiveness of the campaign by launching focus group research. In addition, the copy will be assessed on portfolio and theatre tests. Also, the effectiveness of the advertisement will be evaluated in an aided day-after recall test. This test will be used because the purchase cycle is short and the POS promotions will act as an aid in real life situation. Furthermore, the survey will include attitude test to assess the cognitive and affective reactions to the ads, the company going to collect 2400 surveys to measure the affective of the campaign as well as the success of the ads. Surveys will be distributed on three key areas in Brisbane, Sydney and Melbourne. The effects on the target market behaviour will be measured after the campaign launch and all promotional tools will be assessed.

When people visit the Fruithies’s website, they will be asked to subscribe and mentioned where they have known about Fruithies. Also, they will be able to follow the hyperlinks to Fruithies’s social media network, such as Facebook page or Twitter account. The number of subscription and click-through-rate will be the main measures in online media. The effectiveness of personal selling will be assessed comparing the sales volume in shops with product demonstrations to the shops without. Finally, the number of people who take part in the contest will suggest the redemption rates and indicate the effectiveness of the campaign.

Survey results will determine the effectiveness of each component of the campaign through targeted questions. Small ineffective components, such as radio ads and event sponsorship, can be dropped from the marketing plan for the following year. Larger problems, such as Masterchef and Coles promotions, will have to be replaced by another large campaign that reaches and influences potential customers more effectively, and these actions will be chosen based on survey trends.

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