MKT 222

Aparna MohlaJoanna Maitland

John QuigleyNeo Dongcheng

Shaolei Hong

Table of content

Executive Summary

The purpose of this campaign is to introduce V8 juice to the Chinese consumer. The campaign will target 18 to 50 years old middle class professionals who seek a healthy drink alternative. This is a plan that provided details about the company, brief history, followed by product analysis, marketplace, and SWOT analysis, marketing objectives, strategies, and rationales. The second part of the plan unveils integrated action plans with research findings, communication objectives and strategies, followed by advertising action plans, media action plans and evaluation. The last part of the plan is the budget review of the campaign.The total budget is $....

I. Strategic Planning

A. Background Statement

V8 Juice is a brand owned by Campbell Soup Company that sells healthy nutrition in the bottle. It is a perfect substitute for daily servings of fruits and vegetables essential for healhy diet. 7 out of 10 adults don't get the recommended daily servings of vegetables. The recommended dose is 5 vegetable servings a day. V8 can help in reaching that number by offering a great-tasting lineup of products.

1. Company HistoryThe V Vegetable Juice Company was invented by W.G. Peacock (1896–1948). He was the founder of the New England Product Company, a manufacturer of vegetable juices called Vege-min. In 1933, because of average and non impressive sales he decided to blend the Vege-min juices into a single product with a mixture of 8 juices. These juices are: tomato, carrot, celery, beet, parsley, lettuce, watercress and spinach. The new blend was named “Vege-min 8”. To simplify the name ‘Vege-min 8” was shorten to “V-8”. 1948 the Campbell Soup Company obtained the brand and ever since “V-8” became a well known product. V8 products are sold worldwide and made from eight vegetable, eight fruit, or a mixture of both fruits and vegetables.

I. Strategic Planning

2. The business problem

Convince the Chinese consumer about healthy benefits of consuming V-8 juice

Face challenges in persuading the Chinese consumer about all the health benefits V8 has to offer

Convince the consumer about the convenience and affordability of the product

Promote and teach the consumer about the healthy nutrition in the bottle

Provide convenient way to get more vegetables in Chinese consumers’ diets

"Our mission is to continue making it more enjoyable for people to get the vegetables they need" said Dale Clemiss, Vice President, Beverages, Campbell Soup Company.

Can V8 be a successful product in China where local brands and consumption of natural fruits and vegetables dominate the market? Can V8 marketing strategy succeed and capture the Chinese consumer? Can V8 sales generate revenues in China?

I. Strategic Planning

B. Product Analysis

I. Strategic Planning

C. Marketplace Analysis Cont.

Category Size China produces more than 20 million tons of beverages

annually. Owing to the high-speed increase in beverage production and consumption, China’s beverage industry has basically altered the market dominance of soft drinks 10 years ago. There are more than ten major types of beverage products in the Chinese market, including soft drinks, bottled drinking water and fruit and vegetable drinks. The production of new-brand beverage is growing rapidly.

Trends, significant changes Carbonated soft drink has been traditionally the top

player of the industry, now is being challenged by such products as bottled drinking water, tea drinks and fruit/Vegetable beverages, Chinese consumers have started to realize healthy living style is import to their lives.

I. Strategic Planning

C. Marketplace Analysis Cont.

Market Strengths/Weakness:

Strength: The total market value grew by 153.2% between 1995 and

2000. The rate of growth has been phenomenal, but is beginning to slow down, though is still sustaining well above double digit annual growth rates.

Weakness: Chinese residents’ consumption of the new types of

beverages is very low at present. The average annual consumption of fruit juice and fruit drinks in China is less than 1 kilogram per capita, as compared to the world average per capita consumption of 7 kilograms a year. This indicates that new-brand beverages can still find a fairly big market in China.

I. Strategic Planning

C. Marketplace Analysis Cont.

Competitive Analysis There five major segments among beverage markets, including Bottled water, Tea Drinks, Functional, Juice and Carbonated.

I. Strategic Planning

C. Marketplace Analysis Cont.

Competitive Media and advertisingThe competitors spend a great amount of investment on several of Medias, including traditional media: Newspaper, Magazine, Television, Radio, Billboards, Transportation ads and major websites. Price Structure There are two size of the products in general, individual size and family size. Individual size of the product usually under $1 (RMB 7), and the family size usually between $2-$3 (around RMB20)

Distribution PatternThere are four distribution channels in general services for beverage consumption, Supermarket Chain, Restaurants, convenient stores, transportations

I. Strategic Planning

D. SWOT Analysis

I. Strategic Planning

E. Marketing Objectives and Rationales

Market Segmentation

Segment Market by Occupation: White Collars, Students, Retired Senior Citizens.

White collars in China have High pressure, High intension, High salary. As a survey among 7,500 White Collars in China, a large percentage of them are sub-healthy and suffer from insomia.

The Income standard of White Collars in Beijing is ￥ 5,000 (Approximate $730) , ￥ 5,350 (Approximate $780) in Shanghai and ￥ 4,750 (Approximate $690) in Guangzhou.

They have stable income and more likely to purchase product that is helpful to their health.

Segment Market by Geography: Shanghai, Beijing, Guangzhou.Shanghai, Beijing, Guangzhou locate in the East, North and

South of China respectively. They occupy an excellent geographic advantages and a wide range of radiation to the other around.

STEP 1(2011) White Collars in Shanghai, Beijing, Guangzhou

STEP2(2012) White Collars all Nation wide

STEP3(2013-2014)White Collars, Students, Senior Citizens all Nation

Wide

I. Strategic PlanningE. Marketing Objectives and Rationales Cont.

I. Strategic Planning

E. Marketing Objectives and Rationales Cont.

According to 5th population census in China in the year 2007, the population in Beijing was 13.8 million, 0.44 million of them are white collars; the population of Shanghai was 1.63 million, 0.48 million of them are white collars and the population of Guangzhou was 9.9 million, 0.4 million of them are white collars.

The total amount is 1.32 million. Assume each of them purchase 10 bottles of V8 in the first month of 2011, the total number of V8 sold in January of 2011 would be13.2 million. Assume the price of V8 is $1 (about ￥ 7), the revenue in the first month is 13,200,000 X ￥ 7= ￥ 92,400,000

Assume each month the purchase of V8 would increased by 10%, the revenue in February would be ￥ 101,640,000. For March is 111,804,000. And so on.

I. Strategic Planning

E. Marketing Objectives and Rationales Cont.

The total revenue in the 2011 would be ￥ 1,840,640,000. Assume each year the total amount of revenue would be increased by 15%. We may get the chart in the next page.

The revenue for 2011 is ￥ 1,840,640,000, for 2002 is ￥ 2,116,736,000, for 2013 is ￥ 2,434,246,400 and for 2014 is ￥ 2,799,383,360

I. Strategic Planning

F. Marketing Strategies and Rationales

I. Strategic Planning

G. Research Objectives and Methods

II. Integrated Action Plan

A. Research Objectives and Methods

II. Integrated Action Plan

B. Communication Objectives

Increase awareness of all the benefits of V8 Demonstrate the convenience of consuming V8 as

a healthy substitute of recommended daily dosage of fruits and vegetables

Remind consumers about the importance of healthy diet

Explain time and money saving benefits

II. Integrated Action Plan

C. Communication Strategies

A) Positioning statementV8 is positioned as the healthy drink and a convenient and inexpensive substitute of the consumption of fruits and vegetables recommended in our daily diet. V8 creates a new standard and ease of being healthier by getting recommended amount of vitamins through juice consumption. V8 will not only calm your thirst level, but it will add healthy nutrition necessary for healthy diet.

II. Integrated Action Plan

C. Communication Strategies

B) Target audience Demographics: 18-50 years old Psychographics: middle class, young and middle age, health conscience Rationale: The target audience is based on research Consumer Insights: Info needed from the survey

Ex. 80% of consumers… Ex. To 60% brand name matters

Consumer Barriers: Attitude towards foreign brands Huge variety of other brands Loyalty to other brands Distribution channels

Insights used:

Barriers to overcome: Health conscience Consumer perception and culture Competitors Distribution channels

II. Integrated Action Plan

C. Communication Strategies Cont.

C) The key selling points Health benefits Convenience in consumption Great substitute for unhealthy sodas Great taste variety Reasonably priced Longer shelf life than fresh fruits and vegetables Well known brand

D) Support Focus on being healthy through convenient channel

such as juice consumption

III. Action Plan

A. Advertising Action Plan

III. Action Plan

B. Media Action Plan

III. Action Plan

C. Evaluation

IV. Budget Review

1. Advertising Media2. Production3. Sales Promotion4. Public Relations5. Direct Marketing6. Internet7. Other Costs8. Contingency9. Total