Client: Keurig Journalism 3750 ­ Media Planning and Buying

Thomas W. Peters` Spring 2014

Alexis Johns, Sally Sugar, Jake Schwartz, Nicole Pellechia, Justin Brabander

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I. Executive Summary

Where would the average American be without coffee? People have chosen warm cups of coffee as their caffeine fix of choice for centuries. However, the lifestyle of the typical coffee drinker has changed. Consumers are constantly on the move, and search for convenience. No one has the time to wait around for an entire pot of coffee to brew. They want to grab and go. This where the Keurig lifestyle makes an appearance.

Keurig is one of the most popular single­cup coffee machines on the market. Keurig brewers and K­Cups (branded single­serve coffee pods) began making their appearances in offices and company workspaces, and the popularity grew from there. The owner of Keurig brand, Green Mountain Coffee, provides customers with over 200 flavors of coffee and beverages, giving them a wide variety of options for their daily brew. While Keurig is an ideal choice for a single person, it is also a crowd pleaser being that it can provide everyone exactly what they want, in just a few minutes

With our own choices of media outlets, we plan on implementing a campaign based off of Keurig’s past success. We hope to make Keurig a more customizable and customer­friendly brand. We hope to create customizable online orders for customers, allowing them to mix and match their favorite Keurig flavors in one box. This campaign will pick up around the holidays, being that K­Cups make excellent holiday gift.

Keurig is more than just a brewer. It is a lifestyle. We believe that Keurig brand products keep the motors of millions of people running throughout the day. Quick, easy to operate and delicious, Keurig promises a fresh cup every time. Keurig brewers make for a faster, more convenient morning, and are easily implemented into daily routines. Keurig helps people make a better household. When you use a Keurig brewer, you are brewing so much more than coffee. You are “Brewing the Love”

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II. Competitive Analysis for your major competitors Competitor One:

Tassimo

Strengths 1) Barcode technology tells machine how to brew T Discs 2) Can brew a wide variety of specialty beverages, such as lattes and cappuccinos 3) Can make drinks with real milk

Weaknesses 1) Only has about 2.2 percent of the market share for single­serve coffee 2) Expensive brewers and T Discs 3) Only three different brewers offered

Opportunities 1) Produces one of the only single­serve coffee machines that does not use K­Cups 2) Single­serve coffee market is growing 3) Recently launched new campaign in the United Kingdom

Threats 1) Keurig currently dominates the single­serve coffee market 2) T Discs are, on average, more expensive than other single­serve pods 3) Tassimo does not advertise much in the United States

Target Market: Like Keurig, Tassimo’s target is college educated and fairly wealthy. In fact, Tassimo is more expensive per pod than Keurig. Tassimo also offers a wider variety of beverage types, such as cappuccinos, lattes, and espressos. These options increase its appeal to European markets. Geographic Sales & Product Availability: Tassimo is sold in the United States, Canada, the United Kingdom, Portugal, Spain, Sweden, Switzerland, Austria, France, Germany, and Greece. The company seems to have shifted its focus to Europe instead of trying to fight Keurig’s dominance in the United States. Tassimo brewers and T discs are available online through the company’s website and other sites such as Amazon and Ebay. They are also sold in several retailers such as Walmart and Bed Bath & Beyond. Length of Purchase Cycle: About 52 days Position in Consumer’s Mind:Tassimo’s customers are looking for access to a wide variety of specialty beverages without sacrificing convenience. Dominant Advertising Appeals: Past advertisements focused on Tassimo’s barcode technology which lets the brewers scan pods in order brew a beverage according to certain specifications. The campaign boasted that “The Barcode Brews It Better.” The most recent

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campaign highlights the wide variety of beverages that Tassimo can brew. The ads encourage their customers to “Be Indecisive.” Relative Importance of Advertising vs. Promotion: Tassimo recently launched a new campaign in Europe, but does not advertise much in the United States. They do promote special offers through social media on Facebook and use Twitter and Facebook for customer service. Advertising Budget: According to Ad Age, Kraft spent $683 million on advertising in 2012. The percentage of this that went towards Tassimo is unclear. Advertising Budget/Share of Category Voice: Due to their lack of advertising in the United States, Tassimo’s share of voice is lower here than it is in Canada and Europe. While Keurig heavily dominates the share of voice in the U.S., Tassimo is a fairly well­known alternative. Major Media Used & Budgets: Tassimo’s European campaign will include television, print, outdoor, and online. Past Canadian campaigns have used television, print, and online. In the U.S., the company tends to stick to online advertising. They also use social media for special offers and promotions. Start of Advertising Budget Year: Information not available Advertising Agency: In Europe, Tassimo uses Mcgarrybowen. In Canada, they use Ogilvy. Total Billings: Information not available

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Competitor Two:

Roger’s Family Company (OneCup)

Strengths

1) Long­standing and established brand since1979 2) Based in the United States, specifically Lincoln, California 3) The organization has strong ethical values and mission towards environmentally friendly products 4) Variety of coffee blend options

Weaknesses

1) Does not manufacture single­serve brewing systems 2) Only offers coffee pods; does not include tea, hot chocolate, etc. 3) Not widely available in stores, relying on online orders

Opportunities

1) 97% biodegradable pods, unlike any other pod available in the market 2) In May 2013, a judge ruled their pod was sodissimilar to K­cups that it did not infringe on any of Keurig’s patents 3) At 50 cents per pod, it is the cheapest option for single brew pods 4) Huge market for at­home coffee drinkers

Threats

1) Other companies currently making pods (i.e. Keurig, Tassimo) 2) Companies entering the market, since Keurig’s patents are expired 3) Single­ Cup incompatible

Target Market Demographics & Psychographic Profile: The target for single­serve cups is similar throughout the different brands in the market. As with other competitors, the target market that spends the most on single­serve cups are highly­educated, wealthy homeowners. The age group that shops for single­serve pods the most is 35­64 years old. For this particular brand competitor, one main difference in target market involves the environmentally friendly aspect of the product. OneCup is more appealing to environmentally­focused consumers. Geographic sales/product availability: In general, single­serve pods sell mostly in the North East region of the United States. However, Roger’s Family Company Coffee’s OneCup is based

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in Lincoln, California. Therefore, it is likely the brand is better known by West Coast consumers. Actual sales numbers for the company are unavailable because it is privately owned. In terms of product availability, OneCup is easily available online through the company’s own website (http://www.gourmet­coffee.com/pages.php?pageid=57) and major websites like www.amazon.com and www.ebay.com. In stores, the cups are available in major retailers, such as Costco, Walmart, Bed Bath & Beyond BJ’s and Sears amongst others. Almost all 50 states have an in­store location to purchase the pods. Length of purchase cycle: Approximately every 52 days. Position in consumer’s mind: This brand is stationed in the consumer mind as a cheaper alternative to the K­cup brand. The cups are approximately 30 cents cheaper each. It is also stationed in the consumer mind as an earth­friendly product compared to its K­cup competitor. Dominant advertising appeals: A major focus of Roger’s Family Company in promoting OneCup is the eco­friendly aspect of it. They spend time and efforts to provide customers with statistics and infographics. The staggering numbers about landfills quickly filling up with plastic K­cups is a key positioning point for the brand. For example, one main statistical appeal The waste is approximately equivalent to 16,500 massive shipping containers which – if laid end to end – would stretch for more than 62 miles. Relative importance of advertising vs. promotion: Overall, advertising plays a minor role in comparison to the promotional tactics used primarily via social media networks. Roger’s Family Company does the majority of its promotions of Facebook, Tumblr, Instagram, Pinterest and Twitter. Their Tumblr, Instagram and Pinterest are very visually appealing to coffee in general. On Facebook and Twitter, the company interacts with its customers and promotes in coffee with photos, videos, etc. They substantially promote the OneCup and its environmentally­friendly aspect with visuals of how the cup is built for biodegradability. Also, they send a number of emails out to subscribers with weekly blasts, as well as special offers. Advertising budget for parent company and brand: Information unavailable because it is a private company. Advertising budget/share of category voice: While the advertising budget of the Roger’s Family Company is unavailable, the share of category voice is comparatively low to competitors.Keurig owns the largest share in voice, dominating the market. Single­serve is often synonymous with the Keurig brand. Secondly, Tassimo would have the second share of category voice. Relatively, Roger’s Family Company OneCup is not known nearly as well as its competition. Major media used and budget for each: Social media seems to be the focus of Roger’s Family Company. The company is present on Facebook, Twitter, Tumblr and Pinterest. All of these are cost free and do not require a budget for anything but social media manager salaries.

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Start of advertising budget year: Information unavailable. Name of advertising budget year: Information Unavailable Name of advertising agency handling Roger’s Family Company: Information Unavailable Total billings of the agency handling Roger’s Family Company: Information Unavailable

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III. Analysis for your brand:

Keurig

Strengths 1) Single­serve coffeemakers lead the beverage appliance sales, controlling nearly 2/3 of the market share, while drip coffeemakers (the second largest sales) are forecasted to lose nearly 10% of the market share between 2011­2013. 2) In 2012, Green Mountain had the highest household penetration rate of 6.9% followed by Folger’s Gourmet Selections of 3.8%. Green Mountain also has the highest brand loyalty of 35.5% while Newman’s Own Organics follows at 32.2%. 3) Highest variety of pods (274 types of pods to Tassimo’s 51) due to many partnerships. 4) Green Mountain is the only brand which enjoys both high penetration and high buying rates (6.7% of American households buying it with 2.7 buying occasions per year).

Weaknesses 1) Pods are not environmentally friendly, as they cannot be recycled and are filling up landfills. 2) Less noise reduction on Keurig machines than on comparable models. 3) Requires equipment to brew. 4) With the patent expire, they have no way to secure their spot in the market.

Opportunities 1) Green Mountain’s single cup coffee has anaverage volume of 1.7 pounds per year, behind one of their top competitor’s Newman’s Own Organics of 2.2 pounds per year. 2) Green Mountain can convert unlicensed K­Cups to official licensed sellers.

Threats 1) Keurig’s K­Cup patent ran out in 2012, allowing other competitors like Kraft to release their own unlicensed K­Kups. 2) Pods from store labels and competing private brands against Green Mountain gained around 7% of the Market Share in 9 months once the K­Cup patent ran out.

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3) DRM installed in newer models to encourage brand loyalty and keep unlicensed cups compatibility with the machines. 4) With the expired patent, they can move to amore environmentally friendly pod as they reengineer.

3) Coffee bean prices fluctuate. 4) There are cheaper pod alternatives; brewing pots of coffee is also cheaper in the long run.

Target Market Demographics & Psychographic Profile: Through our research from MRI, Mintel and multiple other credible research sources, we found that this campaign should target men and women age 18­34. According to our research, 18 to 34 year olds are the heaviest coffee drinkers with a market research index (MRI) of 106. Young people consume high amounts of caffeine for their busy, on­the­go lifestyles. This is particularly true for those working in corporate, white­ collar positions, because MRI also shows that college educated people purchase the largest amount of coffee with an MRI index of 145. Geographic Sales/Product Availability: The geographic location that we have chosen to target is the Northeast census region of the United States. We found that the North East region is the highest consumer of coffee, with a 154 MRI index. This region is known to have a large number of businesses, and is continuing to grow in size and capacity. With a large number of young professionals in the area, we feel as though Keurig will see the largest increase in sales and consumption with this geographic location as our main target. Length of Purchase Cycle: Keurig’s purchase cycle is approximately every 70 days in the single­cup coffee category. Many other brands have a lower purchase cycle than Keurig, leaving room for improvement. Mintel provides a chart below for overall observation.

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Support: MRI reports higher than average indexes for buying single­serve coffee makers and K­cups among those with college education and beyond (the indexes reaching around 145­152). The consumer indexes of the machines and pods for incomes of $75,000 and up range from 147 to 182 and drop to 95 at a household income of under $60,000. Additionally, research on Mintel states that 79% of single­cup brewer users believe that it is convenient, 60% believe the coffee is more fresh, and 55% appreciate the variety of pods available (of which Keurig offers 274) and the customization of the beverage. Also, while currently married couples report a consumer index of 121, single and legally separated people both report indexes of 71.

Position in Consumers Mind: To college educated men and women aged 18­34 with incomes of $75,000 and up, as well as a spouse or children, Keurig represents a convenient way to enjoy a fresh serving of coffee of the size and type they want in under a minute. The typical Keurig user is a lover of the fast and convenient lifestyle. Many live in smaller households, and do not feel the need to brew a typical pot of coffee, which holds 4­10 cups each morning. They are happy with one single serving of coffee that brews in a short 40 seconds. Keurig users do not mind paying for K­cups, which are approximately 50 cents each, for they believe that they are paying for convenience. With a packed schedule full of work, a trip to the gym, cooking dinner and taking care of home expenses, the Keurig user is in need of the most efficient way to get their daily caffeine fix, minus all of the calories and long drive through lines at cafes such as Starbucks. The Keurig customer loves variety to break up a monotonous week of

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work.

Dominant Advertising Appeals: Variety: K­cup offers 274 different types of pods, with top selling coffee brands such as Folger's, Starbuck's, and Cinnabon, as well as non­coffee beverages such as Snapple tea, hot cider and soup. The most significant competitor in this area is Tassimo, who on their website offer only 51 different types of pods.

Convenience: All of Keurig's machines boast brewing their drinks in a minute or less, and cleanup is kept to a minimum. Cost Effective: Keurig's machines are cheaper than Tassimo's (Low end Tassimo machines cost $70 more than comparable Keurig models) and the pods cost about the same, meaning that a Keurig machine will start saving the user money before a Tassimo machine will. Relative Importance of Advertising vs. Promotion: Keurig tends to be very active in its promotion. Typically, the brand is posting on Twitter, Facebook, and other platforms daily. These posts can range anywhere from direct promotion, like talking about their ‘Battle Of The Brews’ contest, to retweeting and engaging it’s audience. Keurig uses other means of promotion, as well. For instance, the brand gave a Keurig brewer to George Takei and effectively used him as a form of product placement. Photos of Takei with the brewer were posted around the Internet. This type of promotion has received mixed attention. Some claim that rich people do not need more free products, while others bond over the fact that they can compare themselves to their idols that much more. Last, Keurig has a multitude of parody accounts, that are not officially owned by Keurig but other famous companies, like Mashable. These parody accounts rely on humour to promote the real company creating the facade, but ultimately are still indirectly promoting the Keurig Brewing system. As for advertising, Keurigs becomes especially active around the holiday season. During the holidays, it appears Keurig ramps up its advertising for television ­ creating a variety of commercials for the season. In order to avoid turning away or disrespecting consumers who may not celebrate the seasons, Keurig only subtly hints at Christmas or other holidays with music and related sound effects. Radio advertisements have also been used by Keurig, although it is unclear where and how often these occur. The budget devoted to this medium is also unclear. Most of these ads have been placed online for people to watch/listen to again, which allows viewers to comment, tag friends, embed the videos, and more.

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It is not known if Keurig pays to promote on social media channels. However, it is possible that during large promotions or selling points, Keurig will pay Facebook, Twitter, and others to promote their content and reach their audience more effectively.

Budgeting: Advertising budget for parent company and brand: Green Mountain Coffee Roasters, Inc. had advertising expenses totalling $193.2 million in 2013. This is compared to $147.7 million in 2012 and $90.8 million in 2011. The specific amount of this budget spent on Keurig, specifically is unknown. However, we do know that in 2012 the company spent $62.2 million according to Kantar Media. Advertising budget/share of category voice: The advertising budget for this campaign is an estimate based off of the $62.2 million advertising dollars spent by Green Mountain Coffee Roasters on the Keurig portion of their business in 2012. At a 7 percent inflation rate, they are likely spending about $71.2 million on Keurig’s advertising in 2014. This large amount is likely the reason Keurig dominates the market in share of category voice. Major Media Used and Budget: As described above, Keurig uses traditional media that includes Radio and TV ads. They have also been promoted in various magazines, newspapers ads, and other print material. The company has also appeared in reviews and articles from BusinessWeek, The Wall Street Journal, Mintel, Motley Fool, and countless others. Keurig also utilizes non­traditional media as well by uses social media, buzz events, store displays, and in­store demos. It is unclear on what Green Mountain’s budget specific budget is for Keurig, but we are maintaining an estimate of $71.2 million. Start of advertising budget year: Each January Advertising Agency Handling Keurig: Havas Worldwide controls Keurigs account. Total billings of Havas Worldwide in 2013: $30 million

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Creative Brief for this campaign Key Consumer Insight: Our target consumer is more concerned with time than money, and always appreciates ways to save time without sacrificing utility or quality in making a better household. Communication Objective: As a communication team, our goal is to promote Keurig through lifestyle and healthy living publications. We have found that lifestyle publications have a large following of 18­34 year olds, particularly in terms of brides and new wives. Our research showed that Keurig is a well­desired gift for weddings and holidays, with an audience compiled largely of young women. Creative Strategy: While Keurig has an incredibly strong brand following, we suggested making Keurig a more customizable product. At the moment, Keurig and Keurig products are under a very structured brand. There is a set number of brewers, with a set list of coffee pods that will fit in the machines. People enjoy options and opportunities to customize their own products. Which is why we have decided to implement box customization on the Keurig website. Customers will have the opportunity to mix and match a variety of their favorite branded K Cups in the traditional box of 12. Customers will be able to chose their favorite flavors in their own, personalized box, which itself will be customizable for holidays. We believe that this strategy will increase Keurig’s already extensive fan base. Promise: Advertising will passionately convince the busy, working adult that Keurig easily and affordably provides high quality products that save you time and effort to get the most out of your day. The support will be Keurig’s consistent positive reputation and brand loyalty of its current consumers. Tone: The tone of our advertising will be cheery and happy to actively demonstrate that having a Keurig products will make a better household for you and your loved ones. Tag Line: The tag line we have decided to utilize is “Brew The Love”

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Media objectives & target Target audience: Our heaviest users are college educated, wealthy homeowners in between the ages of 35 and 64. They tend to live affluent lifestyles and typically have children. Linda Cesnik is a 49 year­old Certified Public Accountant with three children and a home in the suburbs of Pittsburgh, Pennsylvania. She is constantly busy between two separate jobs, keeping track of her three children and taking care of the home. Every day she runs errands around town, cooks dinner and works out.Since her husband leaves for work early in the morning and the only child still at home does not drink coffee, she began brewing single­serve cups. It ensures she efficiently uses her time from first thing in the morning and makes just the right amount to start her day. She is a Keurig users; she once bought the OneCup single­serve pods, but did not find them as functional as the K­cups. She likes to store the K­cups in a special organizer that the OneCup’s do not fit in as well. Also, she does not like having to store the OneCup pods in a zip­lock to maintain their freshness once opened. These heavy users are one of our target audiences. They often pair their single­serve brews with cream and sugar. This campaign is going to continue focusing on these heavy users, but also try opening prospects toward a younger market that can still be penetrated by the single­serve industry. This second target market involves the 18­34 year­old age demographic. They are not often as affluent as the heaviest users of the single­serve pods, but they live fast­paced, exhausting lifestyles. Many are college students, newlyweds or working many hours. Taylor Branham is an 18 year­old freshman at Ohio University. She is a health care administration major, who has taken on a rigorous course load, a well as 4 random roommates in The Convocation Center dorm. In order to handle her coursework and a stressful dorm environment, Taylor turned to large amounts of caffeine. Slightly after the winter holidays, Taylor made the decision to use some of the money she received as a Christmas gift, to purchase a Keurig brewer. She needed a brewer that brewed a cup just for herself, and worked in just a few seconds because of her busy and stressful schedule. As far as K­cups go, Taylor has asked for them as gifts in care packages from her parents. Worried about the condition of her Keurig brewer, she asks for Keurig branded pods specifically. She has become a strong advocate for the brand. Media budget: The media budget for this campaign is $71.2 million. This is an increase from the $62.2 million spent in 2012. It is substantially larger than the budget spent by competitors within the United States. These numbers are unavailable; however, Keurig has been able to dominate the share of voice within the market.

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Date campaign begins: The campaign will begin January 1 and continue throughout the entirety of the year. National, regional or local campaign (or a combination of those) Explain why: The campaign will be national because the two targeted audiences for this campaign live across the nation and drinkers of coffee, tea, etc. are not limited to one specific area. Also, the creative strategy involved online purchases, so it does not have to be limited to a certain area. Geographic differences in media weight: However, we will focus a little more heavily in the Northeast region because Keurig’s heaviest consumers live in this geographic region. Television buys will weighted heavily in the Northeast region of the country. However, the digital and social advertisements will not be weighted to a specific region. This will allow people nation­wide to take the action step of visiting keurig.com and purchasing pods online, especially if they are interested in the creative strategy described above. Digital buys will, therefore, be evenly spread nation­wide. Reach ­ frequency & GRP targets: We want steady consistent reach along the whole county, of about 100 GRP, with increased frequency on the east and west coasts and in the northeast, about 150 GRP. In terms of GRP targets, we are aiming to reach out primarily to large cities on the east coast of the U.S., which is a booming area for large businesses. Along side of this, Mintell research shows that the average number of single­serve brewers in offices nationwide, comes to about 1, 344,000,000. As a strategy, we plan to target large urban offices, and allow the word to work its way down to suburban areas. We have made the decision to utilize advertising opportunities on Groupon.com, in order to increase the amount of reach we can promise the client. However, increasing reach is not a main concern of our brand, being that we are the leading competitor in the single­serve coffee market.

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Media recommended:

Print: Our print ads will be in magazines. Assume full page ads. We will also use the back cover of Veranda.

Bridal Guide Bridal guide has an MRI index of 154. Bridal Guide’s reader profile is highly compatible with the campaign’s target audience with 80% of readers between the ages of 18 and 34. Furthermore, 73% of readers are college educated and 83% are women. The median HHI of readers is $57,000, and 40% of readers have a HHI of over $75,000. This aligns with the campaign’s focus on younger people as well as college­educated individuals. It’s also important to note that Bridal Guide has an average of 27 readers per copy of their magazine, leading to a total audience of 3,929,000. EatingWell The MRI index of 155 isn’t surprising considering that the targeted demographics of the publication in terms of HHI ($50,000­$100,000), sex (almost exclusively female), and age (25­64) align perfectly with our brand. In addition, at a circulation of 500,000, the prices of their media are very reasonable, about half of what we would spend on other comparable publications. http://www.media­brokers.com/consumer­magazines/ratecard/eating­well­0­4721.aspx Veranda The MRI index of 205 is a surprising high value, which we chose to look at more closely viewing Veranda’s media kit. We chose to place some of our content in Veranda for their high circulation in the wealthy atmosphere, the median HHI being $103,543. Currently, Veranda claims to circulate to 478,001 people, with focus on the East and West coast as well as Texas. Most of their readers are women, comprising of 86.6% and the median age for readership is 53.1 years. Digital: Utilized year round. We will be using redirected targeted cube ads and Google AdWords Overstock.com The high consumer index of 159 is the main driver behind our decision to focus on Overstock. The average Overstock user has an income of $85,000 a year and a home worth $295,000. The average age of their customers is 47, and their customer base is 76% female, all of which aligns perfectly with the Keurig target audience. In addition, the modern living solutions and home fixtures focus that Overstock offers is the perfect environment for a new user to incorporate one of our machines into their lives.

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Groupon.com Groupon does not do traditional advertising, but it is a way to get people interested in a product. Interest in this website comes from the 139 index.That means that this is not so much a buy as forgoing some or all of the profits of selling some of the machines in the interest of penetration. Just as the previous choices, the high consumer index is the bulk of our reasoning, but what sets Groupon apart as an ideal pick for promotions and discounts is that what it offers and what Keurig offers coincide on a basic level, namely a mix of convenience and value. Groupon is widely considered as a way to get great deals on quality products, and, in addition to the convenience, Keurig’s main appeal is a great deal on a quality cup of coffee. Additionally,Groupon’s unique selling structure makes it easier to get more machines into the home so we can sell the pods.

Broadcast: Assume :30 buys. HGTV (index:132) HGTV as a media buy keeps consistent with our media goals of positioning Keurig as a part of the modern household via lifestyle publications and channels. The MRI data tells us that prospective Keurig customers have high valued homes and have lived in their homes for more than five years, meaning that Keurig and HGTV fulfill a common need of making a warmer, better household. Game Show Network (index: 138) Not surprisingly, the audience for GSN skews older, with 40% of their viewers age 55 and up. While our target doesn’t skew quite that old, we think the high consumer index and the 65% of viewers who are homeowners justify our hunch that media buys in GSN are another great way to position Keurig as a convenient part of the modern household. E! (index 111) Despite a comparatively low index among our other buys, we think E! represents a great opportunity for Keurig to penetrate its secondary targets. E! watchers skew a little younger, with 26% being aged 18­34. We see a fairly even spread along lines of HHI and education, which makes ad buys a prime way to achieve our goals of getting Keurig into the hands of kids going to college and newlyweds as a wedding gift.

Social:

We will also be utilizing sponsored posts on Facebook, and sponsored Tweets on Twitter. In addition to emphasizing our secondary college market, it will bolster general reach. Up to two media that will be most important to the campaign and why they are dominant:

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1) Magazine advertisements are one of the most important media buy decisions we are making. Overall, the heavy users of Keurig that make up our first target audience have high indexes with print. The three magazines we chose will reach this audience in unique ways at key times during the year, and they are also heavy readers of these selected magazines. The topics of these magazines (bridal, eating healthy, home decorating) coincide with the Keurig product. 2) Social media advertisements are our second most important media buy decisions. Social media will help reach our new target audience that involves the 18­34 age group, especially since the majority of this audience is on social media. Of the 18­29 age group, 90 percent are on social media. Furthermore, we strongly believe social media advertisements (along with mixed promotions) will be vital to the creative strategy, which involves online purchases only. With social media buys, an action step can be created to direct consumers directly to the Keurig website. Seasonality of media pattern (heavy or light media schedules at different time of the year) or emphasis on different media at various times of the year): The campaign will begin January 4 with digital, social, print and broadcast advertisements. Many of these advertisements will continue throughout the entire year. In March and April, heavy advertisements of the brewers will be placed in the magazines and in television spots to reach those shopping for bridal and graduation gifts. Next, magazine and television medium and heavy advertisements will be placed in July focusing on the option for cold beverages from the single­serve pods. Lastly, once the colder months roll in and consumers want warm beverages again heavy magazine and broadcast advertisements will be placed for September, October, and November magazine issues promoting the pods. December magazine advertisements will also be used. Television advertisements will pick up in October and continue through December. For social and digital, these pattern will assist and reflect both print and broadcast advertisements. Timing of individual media as related to purchase decision or purchase patterns (or emphasis on different media at various times of the year):

The March and April print ads will be in Bridal Guide and Veranda. The spot in Bridal Guide will help to position Keurig as an ideal wedding gift in the minds of consumers just in time for wedding season. The spot in Veranda will be in the “modern romance” issue, which focuses on falling in love with charming products and designs. This aligns well with Keurig’s tagline of “Brew the Love.”

July’s print ads will be in EatingWell to bring attention to cold beverages. People tend to be more interested in a healthy diet during the summer, so an advertisement in this magazine would be a good way to reach potential customers.

The television spots for March, April, and July will be on HGTV. This channel will serve as an effective way to reach homeowners as the weather gets warmer and more viewers tune in for home improvement ideas.

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The September, October, and November print buys will be in Veranda and focus on promoting the pods. As the weather gets colder and the holiday season approaches, these ads will remind readers of the variety of warm beverages that Keurig offers.

October through December’s television ads will be on GSN. These spots during the holiday season will reach many current owners and inspire them to restock on pods or even buy a brewer as a present for someone.

The television ads on E! will take place in August, November, and December. These spots will target consumers during back to school, black friday, and the holidays.

Social media and digital buys will all be year­round and reflect their print and broadcast partners.

The spots in Bridal Guide will also be year­round, to always be in the mind of ‘gift buying,’ even if it isn’t for a wedding. Gifts are bought for various reasons and people look for inspiration in various places, including bridal magazines.

Relative importance of advertising or sales promotion activities/support: Although Keurig is already the dominant competitor in the single­serve market, it is important to continue building brand loyalty and outreach through advertising. Advertising sales keep consumers shopping for the K­cup pod over competitor options. The biggest component in terms of promotion for this campaign is the use of groupon.com. Keurig will offer the brewers for a fair price in order to penetrate more homes and offices. Following this, the advertisements will promote single­serve pod sales. Briefly justify your recommendations. What will this media plan do for the client? Why should they trust and follow these recommendations? What will they get for their money?

The statistics we obtained from MRI justify our recommendations for media buys. We believe we are reaching a large percentage of our target market through our selected mediums.

For example, our choice to advertise in a bridal magazine will reach new brides and hopefully increase the number of Keurig Brewers being added to bridal gift registries. Our recommendations are under the average current Keurig advertising budget, advertising in lifestyle publications will reach consumers concerned with homemaking, and networks like E! will reach college students moving into a new dwelling.

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VI. Include a media chart illustrating the total budget, and how much of the budget is devoted to each medium. Total Budget: $71.2 million

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VII. Include a media flow chart for each medium.

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VIII. Include a summary media flow chart showing overall media schedule for all media

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Works Cited

2014 Media Kit. (n.d.). Bridal Guide. Retrieved April 28, 2014, from http://www.bridalguide.com/sites/default/files/article­images/BridalGuide_MediaKit_2014_10pgs.pdf Arrington, D. (2012, November 28). Sacramento Bee Article: In Season: Busy time for coffee roasters at Rogers Family Co. in Lincoln. Rogers Family Coffee. Retrieved April 28, 2014, from http://www.rogersfamilyco.com/index.php/sacramento­bee­article­in­season­busy­time­for­coffee­roasters­at­rogers­family­co­in­lincoln/ Bewley, S. (2013, June 9). Rogers Family Coffee Review. Budget Earth. Retrieved April 28, 2014, from http://www.budgetearth.com/rogers­family­coffee­review/ Company Overview of Rogers Family Company, Inc. (2014). Businessweek. Retrieved April 28, 2014, from http://investing.businessweek.com/research/stocks/private/snapshot.asp?privcapId=1004184 Frank, J. (2013, May). The NASFT State of the Industry Report. Mintel Oxygen. Retrieved April 28, 2014, from http://academic.mintel.com/display/664536 Guide to Online Advertising. (n.d.). AdJuggler. Retrieved April 28, 2014, from http://adjuggler.com/docs/AdJuggler_guidetoonlineadv.pdf Levesque, S. D. (n.d.). Private Label Beverages. Mintel Oxygen. Retrieved April 28, 2014, from http://academic.mintel.com/display/689790/?highlight#hit1 Macleod, I. (2014, March 25). Tassimo heats up advertising with biggest pan­European campaign to date. The Drum. Retrieved April 28, 2014, from http://www.thedrum.com/news/2014/03/25/tassimo­heats­advertising­biggest­pan­european­campaign­date Media Kit. (n.d.). Food Network Magazine. Retrieved April 28, 2014, from http://s3.amazonaws.com/jo.www.foodnetworkmediakit.com/uploads/option/files/8/original.pdf Mediamark Internet Reporter. Mediamark Research, Inc. (Fall 2012). Product Home Small Kitchen Appliances Coffee maker ­ single cup/pod brewing system Household owns. Retrieved April 28, 2014, from http://ureporter.mriplusonline.com/selectvolume.asp Network Demographics. (2014). National TV Spots. Retrieved April 28, 2014, from http://www.nationaltvspots.com/ntvs­networks

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New Kraft Foods­Costa Agreement Reflects Company’s Ambition to Win in Retail On­Demand Coffee Across Europe. (2012, April 20). PR Newswire. Retrieved April 28, 2014, from http://www.prnewswire.com/news­releases/new­kraft­foods­costa­agreement­reflects­companys­ambition­to­win­in­retail­on­demand­coffee­across­europe­148222365.html Owen, J. (2013, December). Small Kitchen Appliances. Mintel Oxygen. Retrieved April 28, 2014, from http://academic.mintel.com/display/637801/ Schuett, J. (2012, April 24). Where to Buy Our Coffee. Rogers Family Coffee. Retrieved April 28, 2014, from http://www.rogersfamilyco.com/index.php/where­to­buy­our­coffee/ Schultz, E. (2013, June 24). Kraft Foods Emerges As Big Spender Post­Company Split. Advertising Age . Retrieved April 28, 2014, from http://adage.com/article/news/kraft­foods­emerges­big­spender­post­company­split/242772/ Sisel, E. (2013, December 24). Coffee services compete in the single­cup coffee market. Mintel Oxygen. Retrieved April 28, 2014, from http://academic.mintel.com/display/69108 Sisel, E. (2014, April 9). Single­cup coffee takeover. Mintel Oxygen. Retrieved April 28, 2014, from http://academic.mintel.com/display/700732 Social Networking Fact Sheet. (2013, September). Pew Research Internet Project. Retrieved April 28, 2014, from http://www.pewinternet.org/fact­sheets/social­networking­fact­sheet/ Swift, C. (2013, October 10). Bio­Degradable OneCup Press Release.Rogers Family Coffee. Retrieved April 28, 2014, from http://www.rogersfamilyco.com/index.php/bio­degradable­onecup­press­release/ Swift, C. (2013, October 23). The Mystery of the Bio­Degradable OneCup™ Revealed. Rogers Family Coffee. Retrieved April 28, 2014, from http://www.rogersfamilyco.com/index.php/ Tassimo. (n.d.). Tassimo. Retrieved April 28, 2014, from http://www.tassimodirect.com/ TASSIMO. (2012). Warc. Retrieved April 28, 2014, from http://www.warc.com/Content/ContentViewer.aspx?MasterContentRef=de341d53­63a9­4c5b­b7de­b32de2a12d0f&q=keurig&CID=A96008&PU Tassimo: The Barcode Brews it Better. (2012). Warc. Retrieved April 28, 2014, from http://www.warc.com/Content/ContentViewer.aspx?MasterContentRef=3e20f22c­cf1f­467b­a4bd­83218ac2c594&CID=A96711&PUB=ARFOGI Veranda 2014 Media Kit. (n.d.). Veranda. Retrieved April 28, 2014, from http://www.verandamediakit.com/hotdata/publishers/verandamk2011/verandakit2011/Downloads

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/2014_V_FULL_MediaKit_MMR.pdf Your Products, Our Customers. (n.d.).Overstock. Retrieved April 28, 2014, from http://www.overstock.com/partner?TID=FOOT:CI:SYP Zegler, J. (n.d.). Coffee ­ US ­ September 2013. Mintel Oxygen. Retrieved April 28, 2014, from http://academic.mintel.com/display/63774 Zmuda, N. (2009, June 1). Green Mountain Takes on Coffee Giants Cup by Cup. Advertising Age. Retrieved April 28, 2014, from http://adage.com/article/cmo­interviews/green­mountain­takes­coffee­giants­cup­cup/13677/

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