SEIZING MARKETING OPPORTUNITIES
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1 SEIZING MARKETING OPPORTUNITIES Beverage Forum April 2018 Kevin Lane Keller Tuck School of Business Dartmouth College 1
2 The Marketing Challenge Great brands are born out of opportunity They identify unmet consumer needs and relentlessly focus on satisfying them Creates relevance and differentiation with consumers and customers Consumers talk about the brand; media writes about the brand 2
3 Seizing Brand Opportunities By offering superior delivery of desired benefits, new winners have included such brands as Michelob Ultra, La Croix, Modelo Especial, LifeWtr and others The challenge for such iconic beverage brands as Coors Light, Bud Light, Miller Lite, AriZona, Pepsi and Coke is to also find new directions for growth
4 A Tradition of Finding New Opportunities with Beverages 4
5 Some Classic Pioneering Beverage Brands Starbucks Defined itself as the third place with the richest possible sensory experience Snapple Pioneered the new age beverage category Red Bull Established the functional energy drink category 5
6 Some Beer Brands Finding New White Space Today Michelob Ultra Finding the high-end sweet spot of health (low calories and carbs) and a well-defined image of an active lifestyle and achievement Modelo Especial Expanding beyond a growing Hispanic base to reach a mainstream audience via its Mexican heritage and an updated branding and distribution strategy 6
7 Some Water Brands Finding New White Space Today La Croix Tapping into sparkling water demand via natural flavoring and an active social media presence with a strong community and content creative process LifeWtr Adopting a premium position with a clear purpose of advancing and showcasing the sources of creation and creativity 7
8 The Secret? Actionable consumer insights Unique value propositions Meaningful product differentiation Appealing brand images and personalities Creative marketing activities and programs 8
9 Our Panel Our panel will offer insights and experiences as to how their brands have identified and successfully capitalized on new market opportunities to drive growth. 9
10 Our Speakers Andy Goeler VP Marketing, Bud Light Andrew Springate Chief Marketing Officer Dr Pepper Snapple Group Greg Butler Vice President, Miller Brands, MillerCoors 10
11 SEIZING OPPORTUNITY BY SATISFYING CONSUMER NEEDS Andrew Springate, CMO
12 SOFT DRINKS HAVE DECLINED Total Soda Sales % Change % Source: Beverage Digest Fact Book May
13 SOFT DRINKS ARE A REALLY LARGE CATEGORY US Per Capita Beverage Consumption Source: Beverage Digest Fact Book May 2017
14
15 2014 Diet Soft Drinks - 7% - 8%
16
17 WHY WE EXIST
18 SUCCESS DRIVEN BY ALIGNING BRANDS TO CONSUMER NEEDS INDULGENT REFRESHING HYDRATING WHOLESOME ENERGIZING
19 SODA IS FUN
20 DR PEPPER IS A TREAT
21 I find myself craving it during the day when I m out and about. It s special. It feels like I m having a sweet treat and I m splurging on myself. Nothing else really does it the same way when I have that craving. I love it because it s the sweetest diet soda out there. Diet Pepper always has a uniquely, original sweet taste. The taste profile is sweeter than all the others.
22 SO WE SAID THE MOST SIMPLE, STRAIGHTFORWARD THING WE COULD SAY ABOUT OUR PRODUCT
23
24 IT IS NOT ONLY WHAT WE SAY, BUT HOW WE SAY IT
25 The average consumer is exposed to up to 10,000 messages a day. Source: American Marketing Association, Why Your Customers Attention is the Scarcest Resource in 2017
26 MORE THAN EVER, MESSAGING NEEDS TO BE FUN, INTERESTING, INNOVATIVE, AND ATTENTION-GRABBING
27
28 Digital Video Landing Page Facebook & Instagram WE DEVELOP CREATIVE THAT IS CONTEXTUAL TO EACH CHANNEL Display Twitter
29 TV: LEAN BACK Make it fun, engaging, and attention grabbing
30
31 DIGITAL VIDEO: LEAN IN Craft the message to fit the environment and reward attention
32
33
34 ALIVE IN SOCIAL Social Voice Social Content Social Outreach
35 ALIVE IN THE HEARTS OF FANS
36 IMPACT OF AN INTEGRATED, INNOVATIVE CAMPAIGN 37% 45% of diet soda drinkers say Lil Sweet impacts their purchase intent of diet soda drinkers say they look forward to seeing Lil Sweet Source: Diet Dr Pepper Awareness and Liking Survey 2017, DPS
37 4W W W W W W W W W W W W W W W W W W W W W W W W W W W W W W W W W W W W W W W DIET DR PEPPER HAS CONSISTENTLY OUTPERFORMED KEY COMPETITORS 5.0% Dollar Sales % Change YA 4.0% 3.0% 2.0% 1.0% 0.0% -1.0% -2.0% -3.0% Diet CSDs -4.0% -5.0% Source: IRI Market Advantage Latest 4 Weeks ending thru Latest 4 Weeks ending
38 DR PEPPER HAS THRIVED Sales % Change % Dr Pepper +1.1% in % All Sodas Source: Beverage Digest Fact Book May 2017
39 THANK YOU
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