Soda Stream - Marketing 2

Runninghead:ENHANCEDMARKETINGPRINCIPLES

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SodaStreamSource

Marketing2:EnhancedMarketingPrinciples

MRKTMK351(Winter2016)MohawkCollege

(SodaStream,2016a)

LucasDiFrancesco(000344119)

AdrianSbraccia(000368315)

TylerBigden(000369924)

LakshyGupta(000379241)

EmilieElich(000315552


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TableofContents

DescriptiononTheSodaStream…………………………………………………………………………………….……………………...3

SodaStream’sTargetProfileGroup……………………………………………………………………………….……………………….4

DescribeyourBrand’sPersonality………………………………………………………………………….……………………...………5

Brand’spositioning(inthemindsoftheconsumer)………………………………………………………………………………6

Advertisingstrategiesforyourproductfor2016………………………………………………………………………..…………6

a) keyadvertisingobjective………………………………………………………………………………..……………………6

b) Keymessage……………………………………………………………………………………….…………………………….…6

c) Executionstyle………………………………………………………………….……………..………………………………….7

d) Advertisingvehicles……………………………………..………………………..…...………………………………………7

e) PublicRelations…………………………………………………………………………………….……………………….………8

ConsumerPromotiontools………………………………………………………………………………………………………………….…8

DirectMarketing……………………………………………………………..………………...……………………………………………….…8

SocialMediatopromote………………………………………………………………………….…………………………………...….…10

WorkCited………………………………………………………………………………..…………….…………………………………...….…12

Appendix………………………………………………………………………….…………………………………...………………………….…13


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1. Developadetaileddescriptionofyourproductincluding:Featuresandbenefits,UniqueSellingProposition(whatmakesyourproductbetterordifferentthanyourcompetition?),CurrentretailpricinginCanada,Distribution(whereisyourproductsoldatretailinCanada?),Currentadvertising/promotional/onlinesupport

ThefeaturesoftheSodaStreamSourcearethatitcomesinthreedifferentcolours(red,black,and

white),whichenablestheconsumertobuyoneoftheirliking(SodaStream,2016a).TheSodaStream

Sourceenablestheconsumertomaketheirwatertocarbonatedwater,whilealsogivingthemanoption

toaddflavourpackstothewater(SodaStream,2016a).BenefitofbuyingaSodaStreamSourcesparking

watermaker,theyhaveover40differenttastingflavours(SodaStream,2016).Someoftheflavours

SodaStreamhastoofferinclude“diet,sweetenednaturally,regularandcaffeinefree”(SodaStream,

2016a).Consumersnolongerhavetocarryorstorelargeheavybottleswhichtheyusedtobuyfromthe

store(SodaStream,2016a).Mostmodelsdon’trequireelectricityandenableconsumerstocutdownon

disposingbottles(SodaStream,2016a).TheuniquesellingpropositionforSodaStreamis,theyofferthe

mostproductiveandcreativewaytocreateyoursoda.ThecurrentretailingpricefortheSodaStream

SourceinCanadais$149.99+taxontheirwebsite(SodaStream,2016a).

TheflavourpacksforSodaStreamrangefrom$6.99to$7.99,whilethecarbonatingbottleis$15.99

to$19.99dependingonthequantitychosen(HudsonBay,2016).IfchosentobuytheSodaStreamfrom

oneoftheirotherretailerslikeCanadianTire,theysellthemodelblackfor$129.99+tax(CanadianTire,

2016).SodaStreamhasdistributionthroughoutCanada,whichrangefromsellingproductsonlineto

majordepartmentstores(SodaStream,2016a).ThemaindepartmentstoreswhereSodaStreamcanbe

boughtareCanadianTire,TheBay,Staples,andBedBath&Beyond(SodaStream,2016b).Oneofthe

currentadvertisements(SeeAppendix1)usedforSodaStreamwasintheyear2014,fortheSuperBowl

usingacelebrityendorsement.SodaStreamcurrentlyisgivingapromotionoffreeshippingwhenthe

consumerhasaorderof$150ormore(SodaStream,2016a).Theyalsohasonlinesupportwith

frequentlyaskedsectionspagealongwithtroubleshootingpage,withalsoatoll-freenumbertocontact

ifanyquestionsarise(SodaStream,2016a).


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2. DevelopafulltargetgroupprofileforyourproductincludingDemographics(gender,age,ethnicity,income,educationandoccupation)andPsychographics(consumerattitudes,personality,interests,opinions,andactivities).Includeapictureofyourtargetgroup(GoogleImagesisagoodsourceforpictures).

SodaStreamistheproducerofthewellknowncarbonationproductthatallowsconsumersthe

choicebetween100differenttypesofconcentratedsyrupsandflavorings.SodaStreamsgoalisto

diminishtheconsumptionofplasticbottles,andaluminumcans(WakeUpCokeandPepsi:SodaStream

DeclaringaColaWar).Ithelpsencouragepeopletousetheirproductssinceitleavespracticallyno

wastebehind.WithSodastreamheavilypromotingthereductioninwaste,theyhavedecidedthatthe

bestwaytogettheirmessageacrosswastotargetandappealspecificdemographic&psychographic

market.ThetargetmarketofSodaStreamsishealth-conscious,outgoing,multicultural,trendymothers

andfemalesbetweentheages25-54withmiddleclassincome,whoenjoyrefreshinglow-caloriedrinks

thatcanbeconsumedwithfriends,familyorindividually(WakeUpCokeandPepsi:SodaStream

DeclaringaColaWar).

In2014,SodaStreamInternationalmadeastrategicmovementbyco-partneringwithSkinnyGirl

Cocktails,andintroducingentirelineofthatwouldbetitleandbottledunderthename“SkinnyGirl”

(CompanyOverviewofSkinnyGirlCocktails,LLC,2016).SodaStreamandSkinnyGirlCocktailsbelieved

thatwiththisstrategicmovementtheywouldcreatesolutionbasedlifestylebycapturingandredefining

thefemalelifestyletowardsalcoholicbeverageswiththeclassy,sassy,andoutgoinglookwithonlyhave

thecaloriesofanothermixdrink(WakeUpCokeandPepsi:SodaStreamDeclaringaColaWar).

Researchalsorevealedthathealthierchangesinthefemale’slifestylewasatrendthatisheretostay

(CompanyOverviewofSkinnyGirlCocktails,LLC,2016).

Withtherightmarketingandstrategicplanning,SodaStreamwasabletoclaimthattheir

productshaveone-thirdofcarbohydrates,sugar,andcalories,liketheleadingcompetitorsPepsiand

Coca-Cola.Thevarietyoflow-caloriedrinksbySodaStreamcanbeconsumedwithorwithoutalcohol;

alcoholicdrinksincludingwine,cocktailsandmargaritas,cocktails(WakeUpCokeandPepsi:

SodaStreamDeclaringaColaWar).WithScarlettJohanssonbeingthefirst-everglobalbrand

ambassadorforthisuniquedemographic&psychographicmarket,thefemaleaudienceresponded

quicklyinsupportingSodaStream.


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(TheEveryGirl,2016)

3. Describeyourbrand’spersonality.Abrandpersonalityisthesumtotalofalltheattributesofabrand,andtheemotionsitinspiresinthemindsofconsumers.

SodaStreamfocusesoncreatingabrandthatrevolvesaroundasleek,fashionableandintelligent

style(Mirsky,2014).Thebrandfocusesoncapturingtheproperimagefortheproductsothatitrelays

welltotheconsumerthatwouldbebuyingit.Asleeklooktotheproductismadesothatitcanfitin

withtheconsumer’slifestyle,whethertheyareplacingthisproductintheirhomeorinanofficespace.

Youwanttheproducttofitin,initssurroundings.Forexample,ifyouhavestainlesssteelkitchen

appliances,theywantittobestylishandfitin,inthatenvironment(stainlesssteelmodels).Thebrand

wantstoinspireanintelligentandsleekfeel,tofitinasatrendintoday’ssociety.Itisaverycompact

machinethatmakes“trendy”drinkstoservetocustomersfromabusinessstand-pointorevento

friendsandfamilymembers.

SodaStreamallowsaflexible,creativeandinspiringwaytoservedrinks.Thepersonalityshows

howitreflectstheintelligent,healthy,creativefeel,witheverydrinkitmakes.Youhavetheabilityto

adjustthedrink,exactlyhowyouwanttohaveit.Itfitsinfromafashionablestand-point,offering

variouscolorswithnotjustthedrinkbutforthemachineaswell.Bymakingthisanintelligent,sleek

feel,youareappealingtothesophisticatedconsumer,whoareintheupperclassofsocietyandlooking

foracharmingadditiontotheirwork-spaceorhomekitchen.TheSodaStreamdoesexactlythat,offering

an“upper-class”methodtodrinkingsoda,whichgivesthemthereliable,successfulandintelligentfeel

whileusingthismachine.

Demographics Psychographics

Gender:FemalesAge:25-54yearsofageEthnicity:MulticulturalIncome:MiddleClass(40,000.00-75,000.00yearlysalary)Education:High-School,Post-Secondary(University,College,Private)Occupation:Caregiver,Business,Stayed-homeMother,Fitnessinstructor,HealthCare

Consumerattitudes:PositivePersonality:Sassy,outgoinglifestyleInterests:Entrainment,cocktailparties,familygatherings,socializingActivities:Parties,events,smallgatherings


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4. Describeyourbrand’spositioning(inthemindsoftheconsumer).Whatisyourbrand’spositioningstatement?Ifyourbranddoesn’thaveapositioningstatement,developasuitableone.

Brandpositioningiscomposedfromavarietyofdifferentbutuniqueelementsthatallowconsumers

tonoticethem.Companiesrelyonproductattributes,particularbenefitsandfinallystrongbeliefsand

valuesthatcreatedeepemotionaltiesbetweentheconsumersandtheproduct.Companiesmust

rememberthatwhenestablishingapositionstatementthattheymustbemeaningfulandtothepoint.

ThebrandpositioninwhichSodaStreamisdirectingthemselvestowards,isthebeverageindustry.

SodaStreamimpliesahealthier,fulfilling,creative,andfunwaytoindividualizesparklingwaterina

simple,butexcitingway.

SodaStreamsisaboutmakingwaterexcitingandistheleaderinreducingtheuseofbottledand

cannedbeverages.Inthepledgetoreducetheuseofbottlestheyhavedesignedasloganwhichcries

“Better-for-youandBetter-for-the-planet”(AboutSodaStream,2015).SodaStreamalsohastwomajor

internationalslogansthatenhancetheirbeliefsandvalues.Theyare;SMART.SIMPLE.BUBBLES,andwe

makeitsmartandsimplebecausewereallyunderstandbubbles(AboutSodaStream,2015).Boththese

excellentslogansamplifytheirtruemeaningofbeverages,simpleandtothepoint.

5. Developanadvertisingstrategyforyournewproductfor2016.Includethefollowing:

a) Whatisyourkeyadvertisingobjective?

Ourkeyadvertisingobjectiveistoinform/educateconsumersofourSodaStreamSourceathome,

singleservingcarbonatedbeveragemachine.Tocompareittothecompetition,gainattentionand

exposuretoourhealthiercarbonatedbeveragealternative.Wewouldalsoliketoadvertisethefactthat

itisamorebudgetfriendlyalternativethenpurchasingcarbonatedbeveragesouteveryday,ormultiple

timesaday.

b) Whatisthekeymessagethatyouwanttodeliverinyouradvertising?Whatmessagedo

youwanttheconsumertorememberafterseeingyouradvertising?

Thekeymessagethatwewouldliketosendinouradvertisingwouldbetheconvenienceand

savingsofmakingyourowncarbonatedbeveragesathome.Thisalternativeismuchbetterforyour

healththentraditionalsodabeverages.Wewanttoshowthemachineinuseinpeople’sdailylives,how

easyitistouse,clean,andstore.Wewantpeopletorealizethereisanalternativetosugary,


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carbonateddrinksthattastegoodandmakeyoufeelgreatwhilestayingonbudget.Wewantpeopleto

remembertheeaseandconvenienceoftheproduct,whilealsorememberingthatyoucanstillconsume

greattastingcarbonatedbeverageswithouttheaddedguiltthatpopgivesyou.

c) Whatexecutionstyledoyourecommendusinginthedeliveryofyourmessage?

Lifestyle/SliceofLife-beingabletoshowthemachineinuse,howpeopleincorporateitintotheir

dailylives.Thiswillgivepeopleanunderstandingofhowit’sused,andhoweasyitistouse.

d) Choose2advertisingvehiclesyouwouldusetodeliveryourmessage?Explainwhyeachof

youradvertisingvehicleswouldbeeffectiveagainstthetargetgroupthatyouhave

selected.

SocialMedia(Facebook,Instagram)–Socialmediaisagreatwaytotargetourspecifiedmarket.

Mostpeoplenowadayshaveasocialmediaaccountwheretheyconnect,postandsharetheirdailylives.

Webelievethisplatformwillbeoneofthemosteffectivewaystotargetouraudienceof18-30year

olds.

59%ofmales(18-34)haveFacebook,60%offemales(18-34)haveFacebook

18%ofmales(18-34)haveInstagram,14%offemales(18-34)haveInstagram

47%oftheseusers(18-34)accessFacebookmorethenonceaday.

27%oftheseusers(18-34)accessInstagrammorethanonceaday.(Bennett,2015)

TelevisionCommercialsbetweenpopularshows(Gotham,BigBangTheory,andNCIS)

Sincetheinternettelevisionhasnotbeenaspopularamongtheyoungergenerationsbecauseof

streaminganddownloading.Althoughitisbelievedthattelevisionisnotasgoodofaplatformtoreach

alargeaudienceisfalse.Therearestillmanypeoplewhowatchtelevisionregularlyandalotoffamilies

havemorethanonetelevisionintheirhomes.Aslongasyoupicktheproperprogrammingand

televisionstationsyoucanstillreachaverylargeaudienceofmanyageranges.

93%ofCanadianhomeshaveeithercableorsatellite,85%aredigital,53%havePVR’sand27%

aremulti-sethouseholds.(CanadianMediaStatistics)

BigBangTheoryaveraged16.14millionviewersintheagegroupof18–49(NielsenCompany,

2016)

Gothamaveraged6.10millionviewersintheagegroupof18-49(NielsenCompany,2016)


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NCISaveraged17.26millionviewersintheagegroupof18-49(NielsenCompany,2016)

e) ExplainhowyoucouldusePublicRelationsasaneffectivecommunicationtooltoincrease

brandawareness.

Usetestimonialstoraiseawareness,goodpublicity.Havepeopleexplaininghowmuchtheyenjoy

theproductonline,atconventions,indailylife(brandambassadors)

• Keepupagoodandactivesocialmediaplatform,makesuretoanswerbacktoinquiries,

problems,makesureyouarereachingyourtargetmarketdirectly,engagethemonline.

• Gotoconventions,foodanddrinktoraiseexposurefortheproduct,dodemonstrationsatthese

conventions,samples,letpeopletryitthemselves.

• Associatewithgoodbrands,goodcelebrities,athletes(Sponsorships)

6. Choose2differenttypesofConsumerPromotiontoolsthatwouldbethemostappropriateforstimulatingsalesofyournewproduct.Explainwhyyourchosenconsumerpromotiontoolswouldbeeffectiveingeneratingsaleswithyourchosentargetgroup.

1. Sampling:Provideconsumerswithasmallsamplebottleofanewdrinkmixwitheverypurchaseofa

SodaStreamwatermaker.Thismethodwouldallowconsumersa“trialamount”oftheSodaStream

withthesamplebottletolearnwhichflavorstheylikebeforepurchasingfullsizebottlesofmix.

Furthermore,thiswouldprovideexposuretoSodaStream’snewflavorstothemarket.

2. Coupons:ProvideconsumerswithprintablecouponstowardsseasonalSodaStreamflavormixes

fromsocialmediaplatforms.Thiswillurgeconsumerstogooutandpurchaseproductsbeforethe

couponsexpire.Thechosentargetmarketcomprises55.5%ofFacebookusersand48.5%ofTwitter

users,thereforesocialmediacouponswillbeeffectivewiththisgroup.

7. Choose1formofDirectMarketingthatyoucouldusetoincreaseawarenessofyournewproduct.Explainwhythatformofdirectmarketingwouldbethemosteffectiveforyournewproduct.

Theformofdirectmarketingthathasbeenchosen,istheformofemailmarketing.This

isacosteffectiveandsimplemethodofdirectmarketing,whichismeasurablewhenreaching

yourcustomerbase.Emailmarketingcanbedonethroughthetraditionale-mailnewsletter,

showcasingtheproduct,price,andtheideaoftheproductitself.Promotionale-mailscanbe


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senttotheprospectaswell,thisistogivethemtheideaoftheproductandgivethemthe

opportunitytopurchaseforalowercost.Also,aco-brandingemailcanbesentaswell,placing

theSodaStreamproductinanotherbusinesse-mailoralongsideanotherproductthatisbeing

sentaround.Whileemailingiscosteffective,itisalsoaveryeffectivewaytogather

informationandproduceacustomerbaseforanyproduct.

Thisformofdirectmarketingofferstheabilitytobenoticeablebythecustomer.While

otherformsofdirectmarketingmayworkaswell,emailingdefinitelywillreceivethelargest

responserate.Evenifthecustomerdoesnotopentheemailandreadtheentirepost,theystill

acknowledgetheemail,theyreadthesubjectlineandnoticethenameoftheproductwhich

willstickintheirmindsforthedayattheveryleast.Inregardstoothermethodswhere

commondirectmailmethodswillgetthrownoutinstantlyifitisn’tofimportancetothe

receiver,itwillnotgetreadatall.Whenreceivingphonecalls,theyarealso,forthemostpart,

instantlydeclinedorignored.Youeitherkeepgettingcall-backs,oreventuallygetupsetwith

thecaller/brandthatisofferingyouthesalespitch.Directsellingisthesameway,beingoffered

arelativelyexpensiveproductatyourdoor,thatyoumaynothaveusefor,willturnyouoffofit

instantly.

Furthermore,emailmarketingisadirectmarketingchoicethatworksperfectlyinthis

situation.Youhaveaformofmarketingthatappealsdirectlytothecustomerbaseyouare

aimingfor.Youareaimingforpeoplewhohavethemoneytospendonaproductsuchasthis

SodaStream,customerswhoareopentospendingonanintelligentstyledproductthatfitsin

withtheirlifestyletolooksophisticatedinawaytheycancreatedrinksforfriends,familyand

co-workers.Youofferthemtheideaoftheproductthroughwhattheyknowbest,through

technology.Thistargetgroupisalwaysontheiremail,phoneandcomputer.Throughoutthe

day,theirtimeisspentonthecomputerandphone,readingemailsandtheymaybrowsethe

emailoutofcuriosityifitpopsupintheirinboxontheirsparetime.Forexample,iftheyread

thesubjectline,nowthenameofSodaStreamisintheirhead.Evenifthereisacatchyline,or

somethingshowingapromotionaldealonanewproduct.Theywilldefinitelyhaveinterestin

theproductinsomeway.


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8. HowwouldyouuseSocialMediatopromoteyourproduct?Explainwhyyouhavechoseneachtypeofsocialmediaandwhyitwouldbeeffectiveagainstyourtargetgroup.

Facebook:

Outof1.59billionusersofFacebook55.5%fallbetweentheagesof25-54,and58%oftheentireadult

populationhaveFacebookaccounts.Furthermore,consumerswhofallintothelow-middleclassincome

category($30,000-$75,000)comprisethehighestpercentagesofFacebookusers.10%morewomen

thanmenuseFacebook.ItisfortheselistedreasonsthatFacebookisastrongplatformforthis

particularSodaStreamtargetmarketof25-54-year-oldfemalesfromlow-middleclassincome.

SodaStreamwouldcreateacertifiedFacebookpageforthefollowingpurposes:

• Introducenewproducts,suchasnewSodaStreammodelsandaccessories(SodaStreaminfusing

bottles,flavorsofthemonth…)

• ProvideSodaStreamrecipestospiceupyoursodas

• Informconsumersofonlineorin-storesalesandpromotions,suchas15%withpromotioncode

and/orprintablecoupons…

• AttachadirectlinktoonlineSodaStreamstoreforconsumerstohavefastandeasyaccessto

purchase

• Postvideosandblogpostsofcelebrity’sandconsumer’sproductreviews

• PostcontestsforconsumerstoentertowinfreeSodaStreamproducts

Twitter:

Outof271millionusersofTwitter,48.5%fallbetweentheagesof25-54,and19%ofentireadult

populationareonTwitter.Furthermore,consumerswhofallintothelow-middleclassincomecategory

($30,000-$75,000)comprisethehighestpercentagesofTwitterusers.3%morewomenthanmenuse

Twitter.Fortheabovereasons,TwitterisastrongplatformforSodaStream’stargetmarketof25-54-

year-oldfemalesfromlow-middleclassincome.

SodaStreamwouldcreateacertifiedTwitterpageforthefollowingpurposes:

• Createahashtagsuchas#SodaStreamtoallowconsumerstoseewhatrecipesandproducts

othersarecreatingandusingwiththeirSodaStreamdrinksaroundtheglobe

• Retweetandsharecelebrityandconsumerproductreviewsandphotos

• AttachadirectlinktoonlineSodaStreamstoreforconsumerstohavefastandeasyaccessto

purchase


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• SharestoriesfromSodaStreamconsumers

• PostcontestforconsumerstowinfreeSodaStreamproductsbasedonhowmanytimesthey

“retweet”

• Post“freeshipping”promotioncodesandprintablecouponsforonlineorin-storeproduct

purchases


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WorksCitedAboutSodaStream.(2015,Jan1).RetrievedMarch31,2016,fromSodaStream:http://www.sodastream.com/aboutsodastream/#.VwKM6sfpBFJBennett,S.(2015,February4).59%useFacebookinCanada(LinkedIn:30%,Twitter:25%,Instagram:16%).RetrievedfromSocialTimes:http://www.adweek.com/socialtimes/canada-social-media-study/614360CanadianMediaStatistics.(n.d.).CanadianMediaStatistics.RetrievedfromCanadianMediaStatistics:http://canmediasales.com/canada-101/canadian-media-stats/CompanyOverviewofSkinnyGirlCocktails,LLC.(2016,jan1).Retrievedmarch23,2016,fromBloomberg:http://www.bloomberg.com/research/stocks/private/snapshot.asp?privcapId=128777730Mirsky,J.(2014,February27).Alittlepersonalitygoesalongway.RetrievedApril5,2016NielsenCompany.(2016,March29).Gotham:SeasonTwoRatings.RetrievedfromTVSeriesFinale:http://tvseriesfinale.com/tv-show/gotham-season-two-ratings-38069/NielsenCompany.(2016,March23).NCIS:Season13Ratings.RetrievedfromTVSeriesFinale:http://tvseriesfinale.com/tv-show/ncis-season-13-ratings-38108/DemographicsofKeySocialNetworkingPlatforms. (2015). Retrieved April 05, 2016, from http://www.pewinternet.org/2015/01/09/demographics-of-key-social-networking-platforms-2/ NielsenCompany.(2016,April1).TheBigBangTheory:SeasonNineRatings.RetrievedfromTVSeriesFinale:http://tvseriesfinale.com/tv-show/the-big-bang-theory-season-nine-ratings-38076/SodaStream.(2016a).SodaStreamCanada:-$0.00CAD.RetrievedApril01,2016,fromhttp://www.sodastream.ca/en/product_info.php?cPath=1_32HudsonBay.(2016).RetrievedApril02,2016,fromhttp://www.thebay.com/webapp/wcs/stores/servlet/en/thebayCanadianTire.(2016).Title.RetrievedApril02,2016,fromhttp://www.canadiantire.ca/en.htmlSodaStream.(2016b).Retailers.RetrievedApril03,2016,fromhttps://www.sodastream.ca/en/retailers.phpTheEveryGirl.(2016,Jan1).RetrievedMarch23,2016,fromTheEveryGirl:http://theeverygirl.com/feature/wedding-week-backyard-bridal-showerWakeUpCokeandPepsi:SodaStreamDeclaringaColaWar.(n.d.).RetrievedfromBusiness2Community:http://www.business2community.com/branding/wake-coke-pepsi-sodastream-declaring-cola-war-0798668#Id7Pk1Jc0cfK3P0o.97


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Appendix

1. https://www.youtube.com/watch?v=W7ivSdvc4S0

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Soda Stream - Marketing 2

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