Imc Final
Imc Final
Communications Plan
04.19.2019
Keurig Dr Pepper
T.J. Alvy, Jacob Biggar, Neal Remedios, Devon Webb
Risk = Managed LLC.
MKTG 384
Professor Hessick
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Table of Contents
Executive Summary………………………………………………………………………. 2
Industry Background……………………………………………………………………… 2
Organization.…………………………………………..………………………………….. 4
SWOT Analysis…………………………………………………………………………... 12
Marketing Strategy/Goals……………………………………………………………….... 17
Campaign Objectives…………………………………………………………………….. 20
Creative Recommendations…………………………………………………………….... 23
Media Recommendations………………………………………………………………... 30
Budget Summary………………………………………………………………………… 36
References……………………………………………………………………………….. 34
Appendix………………………………………………………………………………… 47
Executive Summary
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· Keurig Dr Pepper manufactures and produces over 100 well known brands within the juice,
water, coffee and soft drink markets. This three-month IMC plan focuses on specifically one of
· Dr Pepper is currently situated as the third largest brand in the carbonated soft drinks market.
· The campaign objectives are to increase market share and sales revenue by 5% each.
· The campaign theme is centered around the idea of inclusion and a sense of one larger
community. Each of the execution pieces in this IMC plan revolve around this common theme.
· The media plan consists of three separate execution pieces. All carried out through different
media classes. The media classes being internet, tv and radio advertisements. The specific media
vehicles used were Facebook, Houston local cable channels and 98.5 fm.
· Pre and post surveys are used along with SAS and Facebook market analysis tools to
Industry Background
The soft drink industry has brought many key innovations in the business world. The
industry has shown innovations in product development, franchising, mass marketing, as well as
generating new consumer tastes and trends in the culture. The first known producer of soda water
in the United States was a Yale University scientist, then two years later the equipment to
produce soda water was patented. By the 1820’s nationwide pharmacies were providing these
drinks as remedies for ailments specifically problems with digestion. Several brands emerged
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that were still popular later on in the century: Hires Root Beer (Philadelphia, 1886), Dr Pepper
(Waco, 1885), Coca-Cola (Atlanta, 1886), and Pepsi-Cola (New Bern, 1893) (Industry “Soft
Drinks, 2019). In 2016 the global market for carbonated soft drinks was valued at $392.6 billion
(Global Carbonated Soft Drinks Market Share, 2019), in the United States for 2016 the
carbonated soft drinks market was valued at $253.7 billion; taking up about 64.6% alone of the
global carbonated soft drinks market in 2016. Sales of carbonated soft drinks are very dependent
on the ability of the company to develop new products that fit the new needs of customers.
Another key strategy, is to focus on large-scale retailers and supermarkets to get products into
When looking at the growth of the carbonated soft drink industry, we see an expected rise
at a CAGR of 5.1% over the period of 2014-2025 (Global Carbonated Soft Drinks Market Share,
2019). According to experts, in 2015 the United States soft drink market made up 28% of the
global market revenue. Factors like increasing population and the growing need for premium
drinks are causing the market in the United States to gain momentum. Additional factors that aid
in the markets growth are things like the ease of availability for these products and the highly
competitive rivalry between brands within the market. As more new products become available
with different flavors, less sugar, low calories, and natural sweeteners the market experiences an
upward thrust as consumers suddenly have more options to spend money on. As the disposable
income of consumers increases the market also experiences growth because consumers are
A clear trend in the carbonated soft drink industry comes with the lifestyle shift in its
consumers. As people shift to a more workaholic lifestyle, they need their products in a more
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convenient, accessible manner. Since they are living such fast paced, task related lifestyles these
products need to be accessible and easy to purchase to fit the lifestyle of the consumers. Another
trend is the shift to a more health conscious products to help eliminate the negative stigma
associated with carbonated soft drinks. People care about what goes into things that they are
putting into their bodies, if the things they are putting in are bad then they will stop using them
so the healthier the product is the more appealing to consumers it will be (Scipioni, J. 2017,
August 01).
Product innovation is another key trend. With competition in the industry being intense
streamlining the creation of the product proves to be beneficial in many ways. It diversifies the
brand and has the possibility of bringing in new business by gaining the attention of new
markets, this also can increase the company’s positive brand image (Global Soft Drinks Market
2019-2023). We can also see that companies in this industry are constantly trying new marketing
techniques to combat the negative stigma towards soft drinks, while also trying to gain more
Organization
soft drinks (CSDs), juices, teas, mixers, waters and other beverages. The company primarily
operates in North America and is headquartered in Plano, Texas. The company was founded in
2018, as Keurig Green Mountain acquired Dr Pepper Snapple Group and merged the two
companies into Keurig Dr Pepper Inc. The company reported revenues of $7.44b for the year
ending 2018, an 11.24% increase from 2017. However the company reported a net profit of
$586m, a 45.54% decrease from 2017, most likely due to the merger
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Keurig Dr Pepper, is the third leading seller of soft drinks. While maintaining a strong 22.5%
market share, they are a ways off of the two industry leaders, Coca-Cola and PepsiCo. In recent
years, however, Keurig Dr Pepper and its respective brands within the CSD industry has begun
to cut into the market share of both of these companies through multiple methods of advertising,
Keurig Dr.Pepper, offers over 120 brands, in four main sub-categories. The four sub-
categories include, coffees, teas, soft-drinks, juices and waters. Their biggest brands include, Dr
Pepper, Sunkist, Canada Dry, 7-Up, Krispy Kreme, Cinnabon, Panera, Yoohoo, Motts, Hawaiian
The companies’ newly adopted mission statement following the recent merger is, “As
Keurig Dr Pepper creates a beverage company of the future, our combined size and scale
and give back to society in the local and global communities where we have offices, operations,
The company differentiates itself through its’ unique taste containing 23 flavors and its’
rich history of being the oldest-founded soft drink brand in America. Being the oldest soft drink
stands a testament to their quality and ability to sustain a successful product as well.
According to the leading online review service, Influenster.com, Dr Pepper original recipe
scored a 4.7 out of 5 stars. The review was compiled from over 8700 separate responses and was
ranked as the number 2 product in the soda and soft drinks category on their website.
KDP has had a positive increase in revenue over the past five years. Their revenue from
2013 to 2018 has been: 5.99B, 6.12B, 6.28B, 6.44B, 6.69B, 7.44B, respectively (Mergent
Intellect, 2018) Their net income was 703M in 2013 and increased to 1.08B in 2017 prior to the
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merger with Keurig. The industry average EBITDA for soft drink manufacturing companies in
2018 was 12.3%, KDP reported 19.83% EBITDA and has maintained a margin 1.5 times the
The price of the product is consistent with the major carbonated soda drinks in the
industry. They are priced slightly lower than their top competitors, Coke and Pepsi. The most
expensive retail locations are CVS and Kmart which both sell 20 oz. Dr Pepper bottles for $1.99
(Hangover Prices, 2018). The cheaper end of the retail chain, Walmart and Target sell Dr Pepper
for $1.68 and 1.79, respectively. Dr Pepper has an affordable and flexible price in order to create
satisfactory customer loyalty. Additionally, Dr. Pepper uses price cuts and sales promotion offers
in order to attract new customers, and they are able to cover the costs because of their extensive
distribution network.
Dr Pepper uses a direct delivery system route by having the product reach its destination
through a system of distributors (Dr Pepper Marketing Mix, 2018). The major retailers most
associated with Dr Pepper are Walmart, Safeway, Target, Kroger, and SuperValu. This method
enables them to sell their products in major retail stores, restaurants, hotels, gas stations, and
major grocery chains. The second method that KDP uses is warehouse delivery route. In this
method the product is manufactured and then kept aside in the same facility until needed by the
customer. Their substantial large-scale distribution network allows them to reach customers
worldwide. The major food service companies associated companies include Burger King,
Dr Pepper is in the maturity stage of the product life cycle. They use advertising and
promotion as a reminder to keep their brand fresh in their consumer’s mind. The market share
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has been relatively stagnant; only capturing an additional 3% for carbonated soft drinks in ten
years from 2005-2015 (Dr Pepper Market Share in United States, 2017). KDP is still a major
player in the industry because of their constant brand acquisition and increases in yearly revenue
and profit margin. They recognized their position in the cycle when they ditched their “One of a
kind” campaign replacing it with “The One You Crave (Schultz, 2017).” By doing this KDP
of Brand Marketing and Content released a statement that said we live in a day and age where
people are already over congratulated on their individualism so Dr Pepper will no longer
Dr Pepper main key benefit is the flavor. It is distinct from the top two competitors, Coke
and Pepsi. Dr Pepper is unique and advertises their drink is comprised on 23 different flavors.
Additionally, Dr Pepper has numerous brand extensions with their flavors and versions of the
drink. The most popular extensions in order following the original drink are: Diet Dr Pepper, Dr
Pepper Ten, and Dr Pepper Cherry Vanilla (Social Media Brand Analysis: Dr Pepper, 2014).
Dr Pepper may be a mature product, but some of their main benefits come with age. The
company along with their brand acquisitions have a worldwide distribution network that is they
key to their success in the entire Americas as well as in overseas markets. A major source of
their revenue also comes from the soda concentrate that is sold and mixed with carbonated soda
Another key feature of Dr Pepper is their presence online and in the sports industry.
Discovery Research group revealed that Dr Pepper received close to two times the amount of
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positive comments to negative (Social Media Brand Analysis: Dr Pepper, 2014). Dr Pepper uses
both Facebook and Twitter to keep up with consumers and push promotional programs and
contests. Furthermore, they extended their presence to the college football scene which generated
the largest spike in brand awareness that they had ever seen to date when they had a sponsored
Dr Pepper’s self brand image has gone through a series of changes since their foundation
in 1885. Their first slogan was “King of Beverages”, which would change 30 years later as the
company slowly became an underdog to Coke. In the 1960s Dr Pepper removed the period in Dr.
and used the slogan “America’s most misunderstood soft drink.” In 2006 Dr Pepper took a
different approach by attempting to form their campaign around the unique flavor they offered
Dr Pepper has awareness towards consumer interest. They continue to release new
flavors and variations of their famous drink. Health has become a major consumer concern in the
last five years. The carbonated soft drink industry has been overtaken by bottled water which
represents a movement towards healthier lifestyles (Zarling, 2018). Dr Pepper’s most popular
brand extension is their diet soda which makes up 65% of the extended product sales. The
second most popular version is Dr Pepper Ten at 22%. 90% of Dr Pepper’s entire brand
extension sales are comprised of reduced calorie versions which represent the consumer’s loyalty
Dr Pepper positions themselves as a unique brand that does not attempt to taste like Coke
or Pepsi. Rather, they strive to build their brand and create recognition for the taste that
consumers crave over generic cola. Their 2011 slogan, “Can You Handle the Taste” highlights
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their individuality, but moreover Dr Pepper has very positive consumer relations with their
influence on social media and the college football industry. They use humorous social media
posts as reminder advertising in order to keep their product fresh on the mind of consumers.
KDP is the 3rd largest competitor in the carbonated soft drink industry, and they understand that
relations with the major industry leaders can be beneficial. According to a study done by the
including Coke and Pepsi. Dr Pepper uses their brand and their existing distribution network
through KDP to maintain beneficial strategies with major carbonated soft drink brands (Dr
In the cola industry the 3 main players are Coca Cola, Pepsi, and Dr Pepper. Coke and
Pepsi hold a strong market share, making up nearly 70.1% of the market together. Dr Pepper
makes up a strong portion of the other remaining portion, coming in at around 22.5%,
respectfully. In 2017 alone, Dr Pepper and Coca Cola both grew their market shares, which
previously had been around 21.8 and 40.8%. This growth was mainly taken out of Pepsi, as they
saw their market share decrease from 29.8% to 28.7% (Mintel, 2017). From the market analysis,
it is clear to see that Coca Cola and Pepsico are the two largest competitors to Dr Pepper.
When analyzing Coca Cola, their main target audience age and demographics falls in the
ranges of Hispanics and Caucasians under 24 years old, and also consumers 45 years old and up.
Coke primarily appeals to those without a college degree, but tailors to those with a standard
college degree as well (Numerator, 2018). On top of this, Coke’s primary target market is those
making around 60 thousand a year and under. While, Pepsi’s target market is quite similar to
Coke’s, there are a few differences. Pepsi typically appeals to mostly Caucasian consumers 24
and under, and those around 45 to 64 years old. Pepsi appeals more so to a slightly higher
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income crowd than Coke, targeting those making 80 thousand a year and less, and heavily
Coca Cola and Pepsico demonstrate their market position quite similar to each other, but
with distinct, key differences among the two brands. Coke mainly positions their products
towards a family atmosphere, attempting to appeal to every type of person and consumer. On the
other hand, Pepsi typically markets their product as the best the consumer can get by partnering
with multiple sports leagues and using a multitude of celebrity endorsements in advertising.
While Coke uses many different types of media to advertise, their main forms of advertisement
come from newspapers, magazines, internet ads, and commercials - varying upon the country
they are aired in (Dudovskiy, 2015). Profit maximization is the overarching goal of their
advertising and the message that their advertisements convey, tries to accomplish this objective.
The messages they convey with their advertisements are that Coca Cola satisfies thirst, it is
stylish, and it is a part of a lavish, enjoyable lifestyle. Pepsi, on the other hand, does a lot of
advertising online, using social media to allow consumers to interact with advertisements right
there, allowing them to tailor their message to the consumers they’re targeting. This is called
digital fitness. Besides just internet advertising, Pepsico also runs many televisions
commercials. Since Pepsi has had a large place in pop culture, and they use this as part of their
message. By utilizing celebrity endorsements, the brand is sending the message that their product
is the best of the best and that you should never settle for anything less than their product
Coca Cola has many strengths in the marketplace such as its signature logo, loyal
consumers, and a large amount of financial resources needed to maintain their place on top of the
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carbonated drink market. Some problems facing Coca Cola moving forward, however, relate to
the growing scarcity of fresh water needed to be used it their products. This could lead to both
higher costs and capacity restraints moving forward in production (DeFranco, 2015).
Pepsi, on the other hand, maintains its strengths through means of differentiation. They have
partnerships with multiple sports leagues such as the NBA, NFL, and the MLB. Pepsico also
owns the Frito-Lay business, allowing them to package Pepsi products with chip and snack
products as well. The main weakness that Pepsi faces is that with a large amount of their
business tied to North America, whose soda consumption continues to fall, they need to begin
making larger inroads in other nations to keep competing with other universal brands (Hellman,
2016).
One area and reason that Dr Pepper has seen significant growth over the last few years is
due to their strong domestic presence in the United States. International markets only make up
around 12% of Dr Pepper’s annual sales, compared to around 55% and 50% for Coke and Pepsi.
Despite the United States’ declining soda consumption, the U.S. dollar remains much more
valuable and steady in comparison to many foreign currencies such as the euro, Brazilian real,
and Russian ruble. On top of this, Dr Pepper also offers a unique taste to its soda, differing itself
from standard colas, such as Coke and Pepsi. Through this differentiation Dr Pepper can attract a
different variation of customers, that Coke and Pepsi are less likely to reach (Why Dr Pepper is
SWOT
The strongest feature of KDP is their distribution network and their employees. Dr
Pepper has allocated ample resources towards employee programs. They use an eLearning
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partnership with a company called ej4 in order to standardize and upscale their training. Per the
University of Richmond study, they utilize both third party distribution as well as company-
owned direct store delivery (Dr Pepper Snapple Group, 2011). Internal distribution is transported
by trucks and railroads. They use a hub and spoke system which involves major distribution
centers in major areas that allow for the five major areas of the country to operate together in
order to customer service and reduces transportation costs. Their largest hub is located in
Northlake, IL. The facility is one-million square feet and employs over 1200 workers providing
to Chicago and surrounding areas. Along with KDP’s vast distribution network comes a
mainframe IT infrastructure that supports the system. They have a program called Rapid
Continuous Movement in which they strive to eliminate non value-added activities, improving
productivity (Dr Pepper Snapple Group, 2011). They use Six Sigma methods to evaluate and
Another strength of KDP is their brand acquisition and ability to grow. KDP has
experienced growth in revenue as well as net profit. 2017 marked the 12th consecutive year that
the US Carbonated Soft Drinks (CSD) market has declined which may seem detrimental for
KDP considering their portfolio of primarily CSD brands. In 2016 there was the lowest per
capita consumptions of CSD products since 1985. As represented in Appendix A, Dr Pepper was
able to report growth higher than both of the leading competitors, Coke and Pepsi, despite the
trending decline in CSD products. According to the Trefis Team, Dr Pepper’s growth is
attributed to their ability to take market share from PepsiCo, and favorable packaging and price
A major weakness of KDP is their financial management. Many of their financial ratios
are below industry standards. Specifically, their liquidity ratios indicate that they are not using
cash effectively. According to Fern Fort University, their days outstanding inventory value is
high meaning that they must spend more to store their product thus potentially impacting long
term growth. Additionally, their profitability ratio as well as net contribution % si below the
industry average.
Another disadvantage of KDP is their low penetration in foreign markets and reliance on
North America for sales. In 2017 85.8% of sales were from North America alone (Net Sales of
Dr Pepper Snapple Worldwide, 2017). KDP also has a very small market share compared to their
two main competitors who have penetrated foreign markets much deeper than KDP.
When looking at KDPs position in the market based on the amount of earned revenue,
market share they have acquired there are a few opportunities that KDP could capitalize on in the
near and distant future. With a huge strength for KDP being their distribution power
(size/efficiency) expansion into new markets is an obvious opportunity for them (Dr Pepper
Snapple Group SWOT & PESTLE Analysis. 2017, September 15). Having the size of a
distribution operation that KDP has, presents the opportunity to move into international
markets/alliances which could bring in potential new revenues. Expanding to other countries
such as China, India, and other countries like those may prove fruitful in the end. Going back to
the earlier point about distribution being a top strength for KDP another opportunity that is
present is the opportunity to streamline their distribution process to try and decrease some costs
in those areas because of the lower shipping prices. This move could bring some profitability
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with it or the benefits could be passed onto the consumers and then KDP sees an increase in their
market share.
Another potential opportunity for KDP follows the purchase of Bai, and FIJI Water. The
company could increase production of these healthier products in order to gain new revenues
from consumers (Toluwalope. (2016, July 22).We can see examples of the competition following
this trend with Coca Cola and PepsiCo branching out into the bottled water market with Dasani
(Coca Cola) and Aquafina (PepsiCo). The bottled water market has a huge need and if KDP
upped production in that department it could prove to be beneficial over the long term. At least
thirty percent of American adults do not consume alcohol, this is an opportunity KDP could
pounce on and target these consumers with their variety of non-alcoholic drink products
(Alcohol Facts and Statistics. (n.d.). Retrieved March 14, 2019). Also if the company begins
producing more healthy products, that may be a great way to bring about a positive image to the
company. Giving it a good reputation amongst health conscious groups such as juices, and other
non-carbonated drinks.
With that being said, KDP could expand into another new type of drink market, that
being energy drinks. Energy drinks are associated with activity, whatever that activity may be
it’s about getting up and being active. Being associated with activity and getting consumers
moving could be pretty easy for a company in charge of a brand like “Dr Pepper” that is
affiliated with the NCAA. With obesity being another major health risk along with alcohol
consumption these shifts to new drink markets could be the right move for KDP when looking
for a long term sustainable advantage over its competition (Smith Follow. 2012, April 29). As
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stated earlier KDP is trying to shift with the consumer, and this seems like a great way to follow
new trends with drink consumption found within the market today.
One of the major threats in place for Keurig Dr Pepper is the competition they face. Their
main competitors are PepsiCo and Coca Cola, two major market shareholders (Toluwalope.
2016, July 22). Meaning their operations are just as large or probably larger than that of KDP. It
is very tough to compete with that as they are probably aware of as they do not hold the #1 or #2
spot in the carbonated beverage market. These companies possessing more money could in turn
take advantage of more local distributors by paying them with higher profit margins. The same
can be said in terms of having more profit to work with for the competition. If Pepsi and Coca
Cola are earning more that means they have more money to spend on advertising, marketing
A second threat to KDP would be a decline in the United States economy. With less
money in the pockets of consumers they are looking for ways to save money. That means they
are going to be shopping less, spending less, which means KDP would be selling less. Some
commodities may also increase in price substantially which would be a problem for Keurig Dr
Pepper. Since KDP produces consumable products there are also regulations and standards that
products must meet in order to be sold, contamination is another factor that could be detrimental
in that aspect. Certain raw materials used are only provided by certain suppliers so shortages
could occur which could bring problems about. Another reason KDP may see a sales decrease
would be from the negative stigma that has surrounded carbonated drinks. Health studies have
been done on carbonated drinks about possible side effects after long term use as well as the
amount of sugar placed in the carbonated drinks which is not by any means healthy.
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Finally, another potential threat towards Dr Pepper is related to their supply chain. For
the majority of Keurig Dr Pepper sales they rely on a small numbers’ of retailers. This could be a
problem because losing business with one of those retailers could cause their profits to take a
pretty large hit. On the other end of the chain, KDP relies on third party bottling and distribution
companies for a portion of their business. Putting that much trust in third party companies is
dangerous, its harder to manage and track. Being in the dark is never a good idea unless a strong,
trusting relationship is built. Also when these third party companies are in control of a portion of
business, KDP must be careful because if something goes wrong it could have some negative
Marketing Strategy/Goals
In terms of the markets needs, we think the market has an abundant supply of producers
that have some high-selling similar products and other outliers that are more health conscious.
When looking at market share by product in 2016, behind carbonated drinks packaged water
holds the second place spot followed by other types, fruit beverages, iced tea, energy and sports
drinks. These are areas where companies can look to gain market share and profits by making
new products to fit consumers new needs in each of those product categories. In terms of
consumer needs it comes down to ease of accessibility and quality for these products. Consumers
want it to be easy to find and purchase these products while also knowing that they are getting a
product that performs well in their own needs categories. Whether that be taste, purchase
experience, price, convenience depends entirely on the customer solely. But companies can make
an effort to achieve excellence in these categories in order to bring in more revenue from
consumers.
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The first marketing goal is to increase market share by 0.5%. KPD only controls 17.8%
market share as on 2017. The leading competitors, Coke and Pepsi own 42.8% and 25.6% of the
CSD market, respectively. KDP has gained an average of 0.25% market share each year since
2013; whereas, Pepsi has lost an average of 0.53% market share in the same time period.
The second market goal is to increase sales revenue. The index level for Asian-Americans was
the lowest reported ethnic group followed by African-Americans, and Hispanics. Using our
campaign the sales volume will reflect the adoption of new consumers as well as show
preference towards our brand thus increasing the volume of Dr Pepper purchased.
Dr Pepper Original is sold as a product inside the CSD market. This IMC campaign
breaks the overall CSD market into a more precise target market, consisting of three main
segmentations: age, ethnicity and geographic location. Age was chosen as a segment, because
due to Numerator Statistics, in 2017, there was a 107 index number for the age bracket of 45-64
regarding Dr Pepper sales, which was shown to be the most solid consumer base in terms of
regular consumption rate (Numerator, 2017). Age was also an essential portion to our market due
to the lagging nature of the next segmentation, ethnicity. Ethnicity was segmented to contain
only minorities. The specific minorities included were, asian-americans, hispanic-americans and
african-americans. These specific minorities were chosen as they all had index numbers below
75 on the same 2017 index referenced earlier. This segmentation holds the core for our IMC
campaigns’ central theme, “Dr Pepper brings people together and is one drink for everybody.”
Finally, the locations of Houston and Dallas were chosen as the geographic regions to target, as
they are two of the top five most diverse cities in the nation, all located in one common state and
all happen to have large metropolitan populations. In addition to the large diverse populations,
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according to the Center for Disease Control and Prevention, 67% of adults in the South reported
drinking a Sugary Sweet Beverage (SSB) at least once per day, which is the second largest
consumption rate of SSB’s per region in the nation (Get the facts - sugar sweetened beverages,
2017). These segmentations combine to form our overall condensed CSD market of, minorities
in Texas.
The primary target market segment we will be specifically focusing on is, minorities aged
45-64 in Houston, Texas. The evidence for the selection of age and ethnicity is the same that was
discussed in the prior paragraph. Houston was chosen as it had the number one ranking for
diversity in a city in the country, which plays well into the efforts to reach minorities.
The secondary market was chosen as minorities aged 45-64 in the Dallas area. Dallas was chosen
as a secondary market, as it is not as ethnically diverse as Houston, but does still rank fifth in the
nation in overall diversity and contains a large enough population to warrant a three month long
IMC campaign. This secondary market will receive less funding than the primary target market
and will be run on more of a run-back trial basis than the Houston campaign.
Our IMC plan’s overall communications objectives are to increase likeability of the Dr
Pepper brand, build awareness of Dr Pepper as the leading soft-drink option, and re-shape pre-
existing preferences of the Dr Pepper brand in our target market. Dr Pepper is currently
positioned as the third most popular brand in the carbonated soft-drinks industry. One goal of
this IMC plan is to increase the number of consumers within the target market who report
preferring Dr Pepper as their first choice in the carbonated soft-drink industry. Another goal of
the IMC campaign is to increase likability of the brand. Likability is improved through the
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inclusion of various forms of positively charged imagery in each execution piece. Each piece is
centered around a common theme, Dr Pepper brings people together and is “one drink for every
person”. Forms of imagery included in the execution pieces contain, families, friends, smiling,
humor, similarity and happiness, etc. Finally, this IMC campaign aims to increase product
awareness and should objectively increase the number of consumers who report repurchasing Dr
Campaign Objectives
When selecting our campaign objectives we kept the ideal factors of goal setting in mind.
We want the objectives that our campaign reaches to be specific, measureable, attainable,
relevant, and timebound. Reaching these goals will be crucial in helping KDP gain more market
share within the industry and also help boost their sales revenue. Each goal is specific, tailored to
our target market and time period the campaign will be running while providing a certain amount
for each we hope to increase by. All of the goals we have set for the campaign are measurable,
there are established methods that allow us to track and analyze our campaigns effectiveness
within a specific time frame. We have our campaign running for a three month period that falls
between November 1st of 2019 running until February 1st of 2020. With our IMC campaign for
1. Increase the awareness of Dr Pepper in our primary and secondary target markets by 5%
2. Change the preference levels of Dr Pepper by 5% amongst our primary target market
against Dr Pepper’s main competition from the period of November 1st 2019 - February 1st 2020
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We feel that each of these goals are relevant to the marketing objectives and
communication objectives previously set. The goals also involve increasing key aspects the
company finds valuable so that is pushing the company towards a positive direction if the
objectives are accomplished. We also feel that these goals are attainable, given the size of the Dr
Pepper brand, the budget and time period selected for our campaign, and the execution pieces
The first campaign strategy is to place advertising on websites that are frequently visited
by our target market. In 2018, it was found that 89% of adults in the United States frequently use
the internet; there has been a consistent increase in the number of adults who use the internet
over the last 20 years from 52% in 2000 to 89% in 2018. It was also found that during 2018 at
least 69% of adults in the United States used at least one social media site (Demographics of
The second campaign strategy is to run a radio ad over the airways on stations that will
Hispanics accounted for 64.6 million users out of total 247.8 million users surveyed Statista,
2018). Nielsen also collected age demographic data on radio users and revealed that the highest
percent of users reached were males and females aged 35-64(Nielsen, 2018). Both of these
statistics reveal that radio ads are primarily listened to by minority groups and a demographic
The third campaign strategy is to run a television ad across networks and channels that
will capture our target market’s attention the most effectively. Visual diversity has become a
huge trend within tv advertising over the last decade. Visual diversity is described as
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commercials that allow advertisers to connect with broader range of audiences while
conveying a message that corporate America is not just "in touch," racially speaking, but
also inclusively (Race becomes more central to TV advertising. 2009, March 01). This is seen
because according Nielsen Report “TV Trends by Race and Ethnicity”, 62% of African
Americans have wired in cable, 50% of Hispanics have wired in cable, and 66% of Asians
have wired cable in their homes (U.S.TV Trends by Race and Ethnicity. 2011).
For our positioning strategy we decided to take the route of product difference. Dr Pepper
is very different when compared to its two main competitors when it comes to taste. A main way
that Dr Pepper has been known for differentiating themselves from the competing brands is that
Dr Pepper is made up of 23 different flavors. Where the main product in Coca-Cola’s & Pepsi’s
cola products is in fact cola, Dr Pepper’s 23 flavors are: cola, cherry, licorice, amaretto, almond,
vanilla, blackberry, apricot, blackberry, caramel, pepper, anise, sarsaparilla, ginger, molasses,
lemon, plum, orange, nutmeg, cardamon, all spice, coriander juniper, birch and prickly ash.
Focussing on the aspect of differentiating Dr Pepper from its competitors will be crucial when
Our positioning statement is, for minorities in the south that need a drink different from standard
cola, Dr Pepper is a CSD product that has a unique taste like no other soda. Unlike the main
22
competitors Coca Cola and Pepsi our product uses a unique combination of flavors that is
individual.
Creative Recommendations
The target audience for the TV advertisement is our primary target market. The television ad we
have created has a primary use for altering existing brand preferences. We think it is essential to
persuade our target market to choose Dr Pepper when confronted with other competing brands in
a purchasing situation. This audience is our primary target for preference because it has been
shown that minorities and individuals from the ages 45-64 have a lower rate of purchasing Dr
Pepper (Dr Pepper Demographics and Consumer Insights). Another reason we selected this age
range for our primary target audience with the television advertisement is that 55-64 years old
and 45-54 year olds hold the first and second spots in terms of number of TV hours watched
The advertising objective for the television ad is to increase preference for the Dr Pepper
brand over other competitors in the industry. In doing this we hope to see more consumers
selecting Dr Pepper when presented with other carbonated soft drink options in a purchasing
situation.
The television ad was designed to introduce the idea that Dr Pepper carries a
psychological benefit to, calm people down in high stress environments and bring even the
biggest enemies together by simply taking a sip. This television advertisement also carries direct
tangible product benefits as you can see how happy each character becomes from simply tasting
a Dr Pepper.
23
ad that is simply meant to leave a new, more positive perception of the Dr Pepper brand in the
consumers’ mind following the advertisement. We are using the comparison ad execution
The execution styles used for this advertisement contain elements of dramatization,
humor, slice of life and imagery. Dramatization in this advertisement is derived from the fact that
political world figures would never halt a floor discussion to simply share a Dr Pepper with one
another. Additionally, with extreme fictional dramatization comes humor as well, especially in
an instance so out of expected reality as this. Slice of Life and imagery are included as well. The
room will initially have a greyish color scheme to it until the Dr Pepper is cracked open and
unleashes an array of vibrant colors and positive imagery with it. As a Dr Pepper 20 oz bottle is
cracked open, each neighboring country will ask for a sip and smile. As the bottle is passed
further and further along the room, the room begins to brighten from its initial grey color scheme
and the moon begins to lighten up. Presenting the idea to the consumer that happiness follows Dr
Pepper and the product has the power to bring even the bitterest of enemies together.
The ad layout will consist of important looking politicians sitting in a room around a
circular table. Each member is clearly representing an ethnicity. Members are clearly flustered
and tensions are rising. These figures have an authoritative social influence that captures the
The visuals we are going to highlight show a few members drinking Coca-cola and Pepsi.
The members of the table are arguing and cannot seem to find a solution. One member leans over
and picks up a Dr Pepper and cracks the can open. He takes a sip and exhales and audibly. He is
24
immediately relieved and the member next to him sees that he has done this. The room is
suddenly filled with colors that were initially dull and grey. The man who opened the Dr Pepper
slides it to the man to the left and opens himself a new one. He takes a drink and feels the same
relief and his anguish has been satisfied. The leaders continue to pass the soda down and more
leaders join in enjoying Dr Pepper. The commercial ends when the last member tries the drink;
they all stand up raise a toast and exalt, “One drink for everyone.”
The target audience for our radio advertisement consists of both of our primary and
secondary target markets. Both target audiences are included in this advertisement as the low
cost of radio air-time and ability to take advantage of state-run radio warrants the inclusion of
The primary goal of our radio advertisement is to build brand awareness for Dr Pepper
Original and build awareness for our “One drink for everybody,” slogan/campaign theme. In
order to maximize our ability to enhance brand awareness we will run the radio advertisements
in both of our geographic regions, Houston and Dallas. According to Statista.com radio remains
a popular medium for reaching minority consumers. The website reported over 32.3 million
african-american listeners and 42.3 million hispanic-americans tuned into national radio on a
weekly basis alone. Additionally, as reported by Inside Radio, over 97% of hispanic-american
adults and 92% of African American adults are reached each week by national radio across the
The objective for these radio advertisements is to increase brand awareness for our
product among minority groups in both Houston and Dallas. We hope that by increasing
awareness of our product within our primary and secondary target markets consumers will be
25
more familiar with Dr Pepper and their products so they may be more inclined to take purchasing
aspects of unity, similarity and togetherness among consumers, making them feel united by Dr
For Houston the stations we chose to air the ad on are 106.9, 107.5, 98.5, 95.7, and, 90.1.
According to Yelp! 90.1 is a news/talk radio station and the most popular station in Houston (10
Best radio stations in Houston, TX, 2019). The same source sites the Adult Hits station on 95.7
as the second most popular station. Channel 98.5 is Spanish Hits, with 106.9 and 107.5 being
classic hits stations (10 Best radio stations in Dallas, TX, 2019). We chose the two most popular
because they will allow our ad to reach the greatest number of listeners and build brand
awareness, while the classic hits stations allow us to specifically target older minorities that fall
into our target market. We chose to include the Spanish Hits station to further target older
For Dallas the stations we chose to air the ad on are 91.7, 98.7, 104.9, 88.5, and 107.1.
Again, according to Yelp!, 91.7 and 98.7 are two of the most popular stations in Dallas.
Advertising on these stations will allow us to reach the most consumers, helping us build brand
awareness for our product and help drive sales. Station 104.9 is an Asian station give us the
opportunity to market further to Asian minorities who will the them of our advertisement and its
message, while also allowing us to reach our secondary target market. Station 88.5 is a Classic
Hits channel that should give us a good base to appeal to our secondary target market of
minorities in Dallas between the ages of 45 to 64. As with Houston, we decided to advertise on a
26
Spanish Hits station in order to appeal to Spanish speakers who will understand and relate
themselves with our advertisement allowing us to build both brand awareness and target our
It will stimulate interest with its uniqueness, originality, and by appealing to those in America
who speak languages besides just English. The image of unity that this advertisement will
portray will demonstrate to listeners that Dr Pepper is synonymous with acceptance and unity
The execution technique that this ad will use is personality symbol. Even though there is
no central character throughout this, the advertisement itself will represent people of all different
cultures and heritages; giving the listener a theme of togetherness and acceptance that they can
relate to. Our radio advertisement will open with an African-American woman reciting our
campaign slogan, “One drink, for everyone” in English. Next, a hispanic-american man will
recite the same line in Spanish. After that a Chinese woman will recite the same line in
Mandarin. Who will then be followed by a French, Vietnamese and German man doing doing the
same. Concluding the different languages, all of the speakers will together say, “Dr Pepper, one
We decided to use this layout because while appealing to our target markets in both
Houston and Dallas, the ad is also unique and offers a catchy slogan that will stick with
consumers as well. The different languages are sure to get a listener’s attention, especially if that
listener speaks one of the particular languages in the advertisement. These six languages also
happen to be the six most popular languages spoken by our target market. This advertisement
27
accomplishes both of our goals by building brand awareness for our product, while being able to
For our internet advertisement the target audience would be both our primary and
secondary target markets. We selected these audiences for the advertisement because the age
range of 45-64 makes up about 51.9 million of Facebook’s United States users in 2018
(Facebook users by age in the U.S. 2018). Facebook is also becoming a more diverse platform
from year to year. When looking at the study “How Diverse is Facebook?” by Cameron Marlow,
we can see a correlation with internet usage and facebook usage between the three largest
minorities that make up the facebook/internet population ([n.d.]). Retrieved March 29, 2019).
Our advertising objective for the internet ad is to increase awareness among the primary
and secondary target markets. We feel that since both of these areas are well developed urban
areas internet access is not going to be an issue for our target markets (primary and secondary) so
being able to generate awareness by specifically targeting our markets through the use of
consumers. We use the slogan “One drink for everyone” on the advertisement as the main visual
element. Making people feel united and together is a great way to generate positive images about
The appeal for the internet ad is emotional. We are aiming to promote feelings of unity,
togetherness, and community. The social influences we use are social proof and liking because
we think that these influences will bring about these feelings within our target audience.
28
The execution techniques used in this piece are imagery and personality symbol. The
imagery piece causes the buyer to associate with the slogan because the image will show a
diverse crowd all raising a drink of Dr Pepper. This also falls into personality symbol because
we are hoping to create an association with the consumer and the brands.
For the layout of the ad it will be a sidebar ad on Facebook targeted specifically towards
our primary and secondary markets. We chose this layout because facebook ads are formatted on
the sidebar. For our visual elements we will have the whole background in maroon as it is Dr
Pepper’s main brand color. In the center a crowd of ethnically diverse individuals stand together
as a group holding a hand in the air. In the background of the advertisement we will have
multiple famous structures symbolizing the difference in cultures all coming together. As stated
earlier the main color of the ad will be maroon to go along with the Dr Pepper brand color. To
also follow the theme of Dr Pepper’s brand colors accents of silver and gold will be placed
throughout the ad to highlight aspects of the individuals, buildings, and surroundings. The slogan
will be featured in large bold text as the primary visual element towards the top of the ad.
Media Recommendations
Our first media objective is to increase advertising in diverse cities in Texas with our
radio and internet advertisements. This will increase awareness among both primary and
secondary markets. Next, we will achieve a 70% reach and a frequency level of 1.5 for our TV
ad. Reaching these objectives will ensure that the majority of our target markets have been
reached.
One of the strategies we will be using for our media will be scheduling Tv ads to coincide
with NCAA footballs games with continuity. Apart from running our ad on sports channels we
29
will also be targeting cable TV channels since 87.66% of minorities have cable, according to
Nielsen. Our second strategy will be to increase radio ads among the diverse ethnic target for the
demographic of our selected target market. Dr Pepper has a history of vintage radio ads once
For our media mix we decided select TV, Radio, and Internet as the vehicles to transmit
our message to our target audiences most effectively. We chose TV because it has one of the
widest reaches when it comes to advertising. Dr Pepper is a large brand with strong footholds in
the United States; getting our message out to our primary target audience will be easily achieved
through this medium. Another reason we selected TV is because of the trend of race becoming
more relevant in television advertising. Visual diversity can be seen more and more today in ads
on TV as marketers are trying to reach a wider audience, so more minorities are becoming
increasingly more involved with advertisements on television. It did not always used to be this
way, in many cases minorities have been invisible in mainstream media or they were handed
negative roles that usually had them in subservient positions. The final reason we chose TV as an
execution piece is because our target markets age of 45-65 make up the top two spots in terms of
We chose radio because minorities in America are more likely to listen to the radio.
Hispanics and African-Americans alone make up more than ¼ of the radio listener in the US, per
Nielsen. Additionally, we use age demographics as another decision criteria. Radio consumer Commented [1]: https://www.statista.com/statistics/62
4803/number-radio-listeners-by-ethnicity/
market reach for our demographic age range is the highest among all groups according to
Nielsen. Furthermore, we chose stations that reflect our target market. Specifically, we use Commented [2]: statista on race
Spanish Hits station 98.5 because they represent one of the largest ethnic groups in the radio
30
market. Furthermore, we use Adult Hits station 95.7 which is the second most popular station in
Houston. This media vehicle was also chosen because it has the best likelihood to help us meet
our goal for awareness. Radio is an easy way to reach millions of consumers for a low cost.
Additionally, hearing our campaign slogan over and over will introduce our brand to unknown
consumers and reaffirm our brand in the minds of our current consumers.
Lastly, we chose internet facebook advertisements. The reason for this choice is because
there are statistics that show an increasing number of minorities with internet connections and
facebook accounts. Additionally, Facebook has metrics and analytical tools setup that allow us to Commented [3]: facebook is diverse
specifically target our ads to consumers based on geographics, demographics, and behavioral
characteristics. Facebook allows us to minimize wasted reach to consumers that are outside of
the target market. Ads on Facebook are relatively cheap compared to vehicles such as TV
because our company can use our own creative resources. Furthermore, the ad can be very easily
modified.
The geographic scope of our campaign consists of the most diverse cities in the state of
Texas. We chose Texas for a few reasons; the first being that Dr Pepper was founded in Waco,
Texas. Dr Pepper has an ad on Twitter campaigning that people sign a petition to make Dr
Pepper the recognized state drink. The second reason is that Texas had two top ten cities that
were ranked the most diverse cities in America based on multiple criteria which aligns with our
target market.
The scheduling method we chose for the campaign was continuity. Continuity is a regular
our consumers who are aware and an introduction to those who are not. Additionally, Dr Pepper
31
are not putting much thought into the buying process. Continuity covers the entire buying cycle
and allows for media priorities to be set. Although, there is a potential for over exposure with
this method; we proactively considered this by using radio as the media vehicle because of the
reach to our demographic age and ethnic considerations as well as the relatively cheap
advertisements compared to TV ads. Another way we considered this is the use of Facebook ads.
Facebook allows specific targeting which will allow us to be more likely to reach our target
contact with each impression. We used the following statistics from the U.S. Census and the
- Average 87.6% of minorities have Cable Plus (US Tv trends by race and ethnicity).
- Average of 81.3% of minorities have PC access in home and 70.66% of minorities have
Tv: 1,910,500 [reach], 1.89 [frequency], CPM is $14.50, the number of impressions 3,620,689
1.1 million homes $0.25 cents per spot, 10,000 spots, $2500 a week for cable networks.
Radio: 11,885,100 [reach], 1.01 [frequency], cost per 30 second slot $264 CPM $16.5, number
of impressions 12,121,212
32
Internet: 2,407,004.91 [reach], 5.19 [frequency], Facebook cost per click is $0.27, CPM $8,
Total radio advertising cost: Cost of radio campaign $264 x 63 spots x 12 weeks = 200,000
Vehicle: 98.5 La
Total internet advertising cost: Cost per click $0.27 x number of clicks budgeted 370,370 =
$100,000
Vehicle: Facebook
Total television advertising cost: Cost of Tv campaign: $100,000 cost to produce + $52,500 =
152,500
The objectives of this IMC plan are to increase brand awareness and preference for Dr
Pepper brand. In order to monitor how successfully this campaign achieves those objectives,
various forms of quantitative and qualitative research will be gathered through the use of both
Prior to campaign initiation, a pre-test survey will be run specifically directed towards
our target market. The survey, which will be contracted through Centiment.co, is used to gauge
both initial awareness and preference benchmark levels. The survey will consist of three
questions: 1. Have you had a Dr Pepper Original within the past month? 2. Rank your top 5 soda
choices in order by taste. 3. How likely are you to purchase a Dr Pepper in the next month? This
same survey will be run by Centiment.co post-campaign to measure if any increases in reported
33
preference levels or awareness were observed, along with a plethora of other necessary analytics
Another major form of evaluating the success of the IMC campaign is through the use of
services provided by Statistical Analytical Services (SAS). SAS will be contracted to monitor the
online activity of our target market as well as analyze trends and consumption habits of our
The television ad aims to increase the viewers preference to the Dr Pepper brand through
the inclusion of positive emotional appeal. Any increase or decrease in preference to the brand,
directly relating from this and the other execution pieces can be observed in the differences on
the “rank your top 5 soda choices by taste” question from the pre-campaign survey to the post
campaign survey. The television advertisement is the most emotionally charged and will provide
the most impact to the consumer. If successful the positive emotional appeal will lead to a higher
preference towards the Dr Pepper brand and as consumers shift preference from one CSD brand
The success or failure of the radio ad is also derived from the differences in the survey
from pre-campaign to post-campaign. The radio ad will primarily deal with consumer awareness
to the brand. As radio has the largest reach of any of our execution pieces, it has the largest
opportunity to reach consumers in our geographic segments. The questions on the survey “Have
you had a Dr Pepper Original within the past month?” as well as “How likely are you to purchase
a Dr Pepper in the next month?” directly deal with how aware the consumers in our market are of
the Dr Pepper brand. Additionally the success or failure of the advertisement can be seen from
34
either an increase or decrease in the amount of consumers who have bought Dr Pepper recently
or are planning to buy Dr Pepper in the near future, from pre-campaign to post-campaign. If
successful in building awareness an increase in sales should be reported as well (Wright, 2018).
Finally the internet ad will be monitored through the third party analytics company SAS
as well as Facebook's personalized ad reports. The goal of the internet ad is to assist in building
brand awareness as well by continually being presented to our target markets facebook feeds.
Budget Summary
Facebook Advertising - $0.27 CPC estimated 370,370 clicks handled: Cost $100,000
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Appendix