TABLE OF CONTENT

Company Analysis………………………………………………………………………………2-4

Consumer Analysis……………………………………………………………………………...5-8

Survey Analysis………………………………………………………………………………..9-26

Market Analysis………………………………………………………………………………27-31

Product Analysis……………………………………………………………………………...32-36

Competition Analysis………………………………………………………………………...37-40

Problems and Opportunities………………………………………………………………….41-43

Objectives…………………………………………………………………………………….44-50

Budget………………………………………………………………………………………...51-55

Schedule………………………………………………………………………………………56-57

Recommendations……………………………………………………………………………58-60

References……………………………………………………………………………………61-65

Video Advertisement…………………………………………………………………………66-68

Direct Mail Advertisement…………………………………………………………………...69-72

Web Advertisement…………………………………………………………………………..73-75

Outdoor Advertisement………………………………………………………………………76-78

Radio Advertisement…………………………………………………………………………79-81

Other Advertisement…………………………………………………………………………82-84

Meeting Minutes……………………………………………………………………………..85-91

1

COMPANY

ANALYSIS

2

COMPANY ANALYSIS

Changing the soda paradigm is just one of the ways Zevia CEO Paddy Spence is shifting

the beverage market. In 2007, Zevia launched in Seattle, Washington (Personal Communication,

Natalie Gershon, Director of Marketing at Zevia, April 1, 2012), becoming the only company to

release a zero-calorie soda, sweetened entirely of Stevia (Charles, 2012). Currently, Zevia is

available in 15 flavors at retailers including Whole Foods, Target, and Kroger locations with

intention to spread into additional markets (‘Soda’ No Longer, 2012).

Since its start in 2007, Zevia has quickly grown to one of the best-selling beverage brand

in natural products retail stores. In 2010, with its rising success, Paddy Spence announced an

investment in Zevia LLC. Spence said, “Consumers are seeking alternatives to carbonated

beverages laden with sugar and artificial sweeteners, and Zevia offers a true point of

difference…as the first and only soda brand completely focused on Stevia-sweetened solutions,

we’re providing a healthy option for soda drinkers” (“Paddy Spence,” 2010, para. 3). In

November 2010, Zevia moved to California when a “new management team came on board. As

the company was still young, small and flexible, this change seemed fairly seamless, moving a

team member and allowing another to remain in Seattle working remotely” (Personal

Communication, Natalie Gershon, Director of Marketing at Zevia 2012).

Before coming to Zevia, Spence founded SPINS, a market research provider and has had

previous leadership position for natural brands, like Kashi cereal and Nature’s Gate personal care

items, Levlad. Once Spence joined the Zevia team as CEO and Chairman, he hired previous team

members including Robert Gay, Senior Vice President for Sales and Marketing, who helped

build Silk soy milk into a leading brand.

3

Since Spence became CEO and Chairman, Spence has been making huge leads for Zevia.

Last year, Spence focused on launching new products, which now includes 15 flavors. In

addition, Spence sealed a multi-year deal with Sweet Green Fields LLC to supply California-

grown Stevia for the company. Spence noted, “Given that our consumers places high value on

products that utilize locally grown ingredients,” (Gardner, 2012, para. 4). This change brought a

huge advantage to Zevia because it opened them to a new market as Spence and his team

continues to expand Zevia.

In 2012, Spence wants to concentrate on telling Zevia’s stories to consumers, which

includes creating a new role for soda: one that can be something an individual can enjoy but

without the negative attributes. Part of Spence’s plan to focus on Zevia’s story was to hire a

traditional media outreach firm, Extension PR. With Extension PR, Spence’s goals include social

media development and raising Zevia’s Facebook fan base from 3,000 fans to 16,000 by early

2012 (Stein, 2012).

4

CONSUMER

ANALYSIS

5

CONSUMER ANALYSIS

While the survey gave several brand insights, unfortunately it did not provide much in the

way for establishing a primary market. Since the survey could only be sent to friends or close

acquaintances naturally it would not provide exhaustive consumer analysis.

Primary Target

According to a web audience analyst tool, Quantcast, in the analysis of Zevia.com, 59%

of the users that access the site are women, 59% have completed college or graduate school, and

Quantcast categorizes the users as older. The report says the 55-64 age group has the highest

index rating of 158 (Quantcast, 2012).

MRI does not have a listing for Zevia, so similar categories were looked at. There is no

all natural soda category, so artificial sweetener category was the closest. The reason is people

that use these sweeteners usually do so for dietary reasons. In order to identify the primary target,

a consumer group that cares about nutritional content was important. As a group looked at the

artificial sweetener category, and narrowed it down to Truvia as one of the categories. While

none of the users on the survey did list Truvia as a preferred sweetener, it is a proprietary blend

based on Stevia, so it is the closest category until MRI adds Stevia (MRI, 2010A).

Truvia became the number two sugar substitute in the country (Marketing Weekly News,

2011), so it is important to target these users based on the similarity in sugar type. Based on the

Truvia category, the 55-64 women who used Truvia had an index rating of 125 (MRI, 2010A),

indicating its popularity within this group. This also lines up with the Quantcast findings.

Another key finding from the same MRI data shows that the women in this category have a high

index rating of 157, making more than $150,000 in annual household income.

6

In addition to looking at Truvia and artificial sweeteners, it was important to look at diet

cola drinkers because it is used as an alternative soda for many individuals. Backing up the

Quantcast report, in the category of diet colas used in the last six months by women, the 55-64

age group had the highest index rating of 113 (MRI, 2010B). Based on the different groups

looked at in MRI, the best primary target is women aged 55-64 with a higher income that drink

all natural beverages, normally sweetened with an artificial sweetener and/or are diet cola

drinkers.

Secondary Target

For our secondary target, we are aiming for women aged 25-34 that drink regular cola.

Based on MRI findings, on average, most of the survey respondents that drank regular cola were

women and 25 years-old. With so many regular cola users, it makes sense to target individuals in

this group. In addition, the survey showed that most of the survey participants wanted something

different than normal soda, which makes this secondary target relevant. With Zevia and the right

marketing, this secondary target can be reached.

7

$150,000+ Annual Income Diet Cola Users

Highly Educated Ages 55-64

Primary Target: Women

Regular Cola Users Wants a Different Kind of Soda

Thinks Soda Cannot be Healthy Ages 25-34

Secondary Target: Women

8

SURVEY

ANALYSIS

9

SURVEY ANALYSIS

Question 1: Amount of soft drinks consumed

The survey asked how often the respondents drank soft drinks in a week. Asking this

question would help the group get a better idea as to how receptive consumers would be trying a

new soft drink. Of the respondents, 42% said it consumed soft drinks zero to one time a week,

33% said it drank soda two to three times a week, 9% said four to five times a week, and 16%

said it drank soft drink 6 or more times a week. While the zero to one time a week category had

the most respondents for a single group, the majority of the survey users indicated it drank soft

drinks at least two times a week.

Question 2: Type of soft drink purchased

This question asked the kind of soft drink purchased because the group wanted to start to

narrow down the categories and get an idea how popular all natural soft drinks are.

Overwhelmingly, 61% of the respondents said it bought regular soft drinks, 18% said diet soft

drinks, only 9% said it bought all natural soft drinks, 7% of the users said it do not purchase

soft drinks at all, and 5% said other where both listed real sugar as the kind of soft drink.

Taken together, the diet and all natural groups comprise 27% of the respondents. The two

categories have much more in common. Diet users went for those drinks because many are trying

to cut down on sugar, as well as calories. All natural drinkers probably had similar thinking and

might also prefer the taste of natural ingredients.

Question 3: Brand of Soft Drink

With this question, the group wanted to see what brands are most popular and see

whether anyone drank Zevia. Unsurprisingly, the highest number of 40% said it drank Coca-

Cola. Pepsi came in a close second with 33%, 9% said other, 7% said all natural, and 5% said a

10

generic store brand which tied with 7-Up. Dr. Pepper came in last with 2%. In the all natural

category, respondents listed Jones Soda, Dry Soda, Blue Sky Soda, and Naked Soda, all of which

mainly use natural cane sugar. Blue Sky does have one zero calorie variant that uses Stevia, but

not across all flavors and variants.

Question 4: Sweetener

This question examined whether users knew what sweetener is used in their soft drink

and the majority did not. Of the respondents surveyed, 67% said it did not know what kind of

sweetener is used their most purchased soft drink, 24% said cane sugar, 7% said

aspartame/nutrasweet, and 2% said splenda/sucralose. None listed Stevia.

Question 5: Most important soft drink quality

This part of the survey asked the users to rank taste, price, brand, and nutritional content

from a most important ranking of one to least important of a four ranking. In the taste category,

54% rated taste as the most important. In price, 41% gave a rating of three, just one rank above

least important. As for brand, 31% gave it a three rating, 29% gave it a two ranking, 26% gave it

a four ranking and 14 % gave it a one ranking. With most of the rankings on the lower end of the

scale, it suggests brand is not the most important consideration. For nutritional content, 43%

gave a low four ranking, with the rest of the percentages going up the scale. With about half of

the respondents divided between the options, the respondents indicated nutritional content is

somewhat important.

Question 6: Place of purchase

The survey asked where people bought soft drinks because it would be good to know

where the consumer usually bought soft drinks, allowing Zevia to be appropriately placed more

often. Of the respondents, 31% purchased at the grocery store, 28% at restaurants, and gas

11

stations and vending machines had 19% and 17%, respectively. Only 5% said specialty food

stores.

Question 7: Ever tried Stevia?

This question is important because stevia is important to Zevia. It is integral to the drink

and the group needed to know if anyone has tried stevia. Unfortunately, two groups made up

93% and said either no or not sure. Only 7% said yes it have previously tried it. However, the

survey discovered that most people do not care what flavors their soft drink, according to

question four of the survey.

Question 8: Stevia Taste Rating

This question asked how the consumer would actually rate the taste of whichever stevia

soft drink the consumer had previously drank. Out of 12% that did try it, 7% rated the taste as

good, the second place ranking below very good and the remaining 5% said very poor and

acceptable. The remaining 88% of course, had no opinion since the majority of the survey

participants have never consumed a drink with stevia. Since such a low number of respondents

rated the taste, how people actually regard the taste of stevia is unclear.

Question 9: Zevia Brand Awareness

This question is very important because the group needs to know how many people have

heard of Zevia. Of the respondents, 93% said it had never heard of Zevia soft drinks and only 7%

said it had heard of Zevia. Clearly, these results indicate that Zevia has a brand awareness

problem.

12

Question 10: Ever used Zevia?

The survey asked whether any of the respondents actually have tasted Zevia. Only 2%

said yes and 98% said no or not sure. With such low percentages again, a strong brand awareness

program needs to be created for Zevia.

Question 11: Zevia’s Taste Rating

The very few 2% that did taste Zevia gave it the second place rating of good. Again,

these results did not indicate whether Zevia’s taste is genuinely liked or disliked. Since the

survey had users from a variety of areas, it appears that Zevia is not in enough stores.

Question 12: Reasons for not buying soft drinks

This was a purely qualitative question that asked the survey users why it did not buy soft

drinks. The group thought it would possibly give us ideas in changing the mind of users to buy

Zevia. The users that actually left responses had concerns with nutritional content. One

respondent said that “soft drinks have high calories”, another said “it was unhealthy,” another

one said “it hurt their stomach,” and another said “water is better and more refreshing,” and

lastly, another user said “soft drinks have too much sugar and use artificial ingredients.” All of

these responses indicate a trend that Zevia has the opportunity to change in the consumers mind.

Question 13: Soft Drinks and Healthiness

The survey asked whether soft drinks could ever be considered healthy, 56% said no,

23% said not sure and 21% said yes. The group asked this question to see what their attitudes

about soft drinks were and whether it could change. The 57% seem to have a perception soft

drinks could never be considered healthy. The remaining 44% that said not sure or yes indicate

with the right type of soda and proven benefits, an attitude change about soda can be made. This

change can happen with Zevia.

13

Questions 14 and 15: Age and Sex

The average age of the survey users was 25 with 74% of the respondents being female

and 26% of the respondents being male.

Question 16: State

We asked each respondent which state the individual lived in to get a better idea of where

to market the advertisements. Most of the respondents came from the western region of the

country for a total of 18. Seven came from the South, and nine came from the Northeast. The

Midwest had the least respondents with six.

Summary

The survey was conducted through Kwiksurvey.com, which allowed for easy distribution

to an online environment. The survey was posted on group members personal pages including

Facebook. In order to receive the best results from a variety of individuals from various states, an

online survey was the best option.

The greatest amount of the survey respondents lived in the western region of the United

States. The majority was female and the average age was 25. Most of the survey respondents

drank some kind of soft drink, with regular as the most common. Coca-Cola and Pepsi are the

most common brands listed, but the respondents did not list brand as very important when

purchasing a soft drink. The majority of the survey respondents said taste was most important,

but the vast majority did not know what kind of sweetener was used in their favorite soft drink.

Only a few of the respondents knew about or tried Stevia in a soft drink. Very few respondents

had heard of Zevia or tasted it.

14

0-1 times a week42%

2-3 times a week33%

4-5 times a week9%

6+times a week16%

1. How Often Do You Consume Soft Drinks a Week?

Regular61%

Diet18%

All-Natural9%

Other5%

Does Not Purchase7%

2. Type of Soft Drink Purchased

15

Pepsi33%

Coca-Cola40%

Dr. Pepper2%

7-UP5%

Generic Store Brand

5%

All Natural7% Other

9%

3. Brand of Soft Drink

Cane Sugar24%

Aspartame/Nu-trasweet

7%

Splenda Sucralose2%

Do Not Know67%

4. Kind of Sweetener Used

16

5. Most Important Soda Feature

Taste Price Brand Nutritional Content0

5

10

15

20

25

Most Important ImportantLess ImportantLeast Important

17

Restaurants28%

Grocery Store31%

Gas Station19%

Vending Machine17%

Specialty Food Store5%

6. Place of purchase

Yes7%

No49%

Not Sure44%

7. Ever tried Stevia?

18

Good7%

Acceptable2%

Very Poor2%

Never Have Tried88%

8. How would you rate the taste of Stevia?

Yes7%

No93%

9. Have You Heard of Zevia?

19

Yes2%

No88%

Not Sure9%

10. Have you tasted Zevia?

Good2%

Never Have Tasted98%

11. Rate the Taste of Zevia

20

12. If you do not buy soft drinks, what is the reason?-I haven’t ever heard of it.

-It is unhealthy.

-I don’t like anything fizzy.

-Because it contains high calories.

-Because it hurts my stomach and does not make me feel good.

-The taste diminishes as calories are reduced/substitutes don’t taste as good, and one

cannot consume full taste sodas consistently for health reasons.

-Water is better for you and more refreshing.

-Too much sugar, artifical ingredients.

Yes21%

No56%

Not Sure23%

13. Could Soft Drinks Ever Be Considered Healthy?

14. Average age is 25.

21

Male26%

Female74%

15. Sex

22

16. Location of Survey Respondents

23

Soft Drink Survey PLEASE ANSWER ALL OF THE FOLLOWING1. How often do you consume soft drinks?

0-1 times a week2-3 times a week4-5 times a week6+ times a week

2. What type of soft drink do you most often purchase?RegularDietAll-NaturalOther. Please List:I Do Not Purchase Soft Drinks

3. What brand of soft drink do you most often purchase?PepsiCoca-ColaDr. Pepper7-UPGeneric Store Brand (e.g. Safeway, Sam’s Club, etc.)All-Natural. Please List:Other. Please List:I Do Not Purchase Soft Drinks

4. In the soft drink you most often purchase, what kind of sweetener is used? Cane SugarAspartame/NutraSweetSplenda/SucraloseSteviaOther. Please List:Do Not Know

5. When purchasing a soft drink, what is most important? (Please rank the following from most important (1) to least important (4)).

TastePriceBrandNutritional Content

24

6. Where do you normally purchase soft drinks? (Check all that apply).RestaurantsGrocery Store

Gas StationVending MachineSpecialty Food Store (e.g. Whole Foods, etc.)Other. Please List:

7. Have you ever tried a soft drink with Stevia (sugar substitute)?YesNoNot Sure

8. If you have tried a soft drink with Stevia, how would you rate the taste? Very GoodGoodAcceptablePoorVery PoorNever Have Tried

9. Have you heard of Zevia soft drinks?YesNoNot Sure

10. Have you tasted Zevia soft drinks?YesNoNot Sure

11. If you have tasted Zevia soft drinks, how would you rate the taste?Very GoodGoodAcceptablePoorVery PoorNever Have Tasted

25

12. If you do not buy soft drinks, what is the reason?

13. Could soft drinks ever be considered healthy? YesNoNot Sure

14. What is your age? ______15. What is your sex? Male_____ Female_____16. Which state do you live in? __________________

26

MARKET

ANALYSIS

27

THE BEST MARKET FOR ZEVIA

The soft drink market in the U.S is oligopolistic in nature. In a study, “the top three firms

dominate more than 85% of the market. Coca-Cola is number one among the three, followed by

Pepsi Co. and Dr. Pepper Snapple” (Wood, 2011, Para. 6). In this situation, Zevia may have a

hard time penetrating a market. However, a better growth scenario can be expected owing to the

growing popularity of diet soft drinks. In 2010, “two diet brands, Diet Mt. Dew and Diet Dr.

Pepper, posted volume growth rates in excess of +5%. Diet Coke, though down -1%, moved

ahead of regular Pepsi in the brand rankings and is now the #2 brand” (Sicher, 2011, Para. 2).

Looking specifically at the diet U.S. carbonated soft drink business, there was quite a

gain in 2010, which accounts for 30% of the entire category of soft drinks. Since Zevia has

flavors of Cola, Dr. Zevia and Mountain Zevia, it can target consumers who usually enjoy Diet

Coke, Diet Pepsi, Diet Mt. Dew and Diet Dr. Pepper in current huge diet soft drink market

(Sicher, 2011).

For these reasons, after Zevia targets the all natural soda and diet cola market for the

primary market, it can choose a regular cola drinker for the secondary market. Since Zevia is an

all natural, zero calorie soft drink, all natural soda consumers can be targeted for the primary

market and then the rapidly growing diet soda market can be targeted, too.

In order to better understand Zevia’s demographic market, research based on four MRI

categories was looked at in determining the best market for Zevia. MRI categories include Diet

Cola Drinks, Other Diet Soft Drinks Not Colas, Artificial Sweeteners, Truvia and Splenda

consumed in last 6 months in fall 2010. Truvia is a sugar substitute made from the Stevia plant.

Currently, Truvia is the second bestselling sugar substitute in the United States. Another top-

selling sugar substitute is Splenda, which controls about 60% of the market (Franklin, 2012).

28

Without surprise, all the categories have similar demographic results. With these results, the

conclusion can be drawn that white women, post graduate, age 55 to 64, household income of

$150,000+, home value of $500,000+ would be most appropriate for Zevia to target. For the

secondary market, a target age between ages 25 to 34 would help expand Zevia’s potential

market and help create longevity for the brand (MRI, 2010).

For the census region, MRI results vary. Truvia, used in the last 6 months, has the highest

index for the Northeastern region. For Splenda, MRI shows the South is the best region. For Diet

Cola Drinks and Other Diet Soft Drinks Not Colas, have the same results, indicating the Midwest

is the best region (MRI, 2010). Since MRI results were inconclusive, the best part of the country

for Zevia to be promoted is based on articles, not MRI. By the Spins® report for the four-week

period ending July 11, 2009, Zevia ranked the number one soda brand in the northwest,

indicating popularity with consumers. In addition, Zevia makes the top-selling soda in natural

food markets in the West ("Zevia is the," 2009). Therefore, the best region for Zevia to promote

its products will be the West due to current popularity of the product in these regions. This will

allow for easier expansion of the product and psychographic characteristics that are found in

Lifestyle Ranking Index.

Based on Lifestyle Ranking Index, 2010 for the West, it was best to pick cities that have

better access to natural food markets and outdoor activities, while having larger populations of

people, which would help with addressing reach and frequency of the target market. Three areas

that match these characteristics were Los Angeles, California; Denver, Colorado; and Seattle,

Washington. Individuals in these three urban areas have similar psychographics.

Among these cities, Los Angeles has the highest index scores that correlate best with

qualities related to the Zevia lifestyle. To be specific, residents in Los Angeles prefer specialty

29

stores because it has the best brands (114), prefer to buy products from specialty stores (112),

and always look for brand name (108). It means that Los Angeles can be our best market because

people in Los Angeles are willing to go to specialty stores for a specific brand. This can be

translated that it will go to a Whole Foods Market for Zevia. Also, Lifestyle Ranking Index

shows that individuals in Los Angeles would pay more for environmentally-friendly products

(113), ban products that pollute (110), and have a duty to recycle (108). Residents also

participate in some sport or exercise once a week (105) and these characteristics can be matched

with our product since our target audience cares more about health, something Zevia products

are aware of.

Individuals in Denver also have similar psychographics based on Lifestyle Ranking

Index. It does some sport or exercise once a week (106), have a keen sense of adventure (102),

prefer specialty stores because it has the best brands (105), always look for brand name (103),

would pay more for environmentally friendly products (104), and have a duty to recycle (104).

People in Seattle are similar. Residents participate in some sport or exercise once a week (105),

would pay more for environmentally-friendly products (104), have a duty to recycle (103), prefer

specialty stores because it has best brands (102), and always look for brand name (102). Even

though the overall index number of Denver and Seattle are quite lower than Los Angeles, all

these characteristics are still about average and fit well within our target audience

psychographics. Additionally, based on Zip Code Demographic data from the 2010 census, there

are 1,085,195 white populations and 1,192,378 female populations in Los Angeles ("Los

Angeles, CA," 2012). In Denver, Colorado, there are 415,108 white populations and 287,950

female populations ("Denver, CO -," 2012). And there are 594,978 white populations and

30

419,189 female populations in Seattle, Washington ("Seattle, WA -," 2012). These findings,

based on the three cities in the west, help tie in exactly who makes up our target audience.

31

PRODUCT

ANALYSIS

32

PRODUCT ANALYSIS

Zevia is a product produced to have zero calories and zero sugar. As Zevia states on its

website, it’s a soda plain and simple made with the natural ingredient Stevia and tastes great.

Zevia doesn’t use artificial flavorings or sweeteners. The product was created in response to the

“Sugar Epidemic” and the way it is tied to obesity and diabetes. The company states, “sugar is

killing us,” ("Zevia faqs," 2012). Zevia is the only beverage product on the shelves that is

sweetened by Stevia and is classified as a first to market product that will contribute to the

success of Zevia ("Two small beverage," 2012).

The sweetener Stevia is unique in that it’s an all-natural product and is derived from a

plant from the sunflower family from South America ("Zevia faqs," 2012). Reb A is extracted

from the Stevia plant and is the sweetener that is in high demand by beverage manufacturers.

Zevia signed a multi-year contract with Sweet Green Fields (SGF) to become its only supplier of

Stevia. SGF produces Stevia in California and generates enough high Reb A to meet high the

high quality required by Zevia but also more reasonable cost wise ("Sweet green fields," 2011).

Zevia sodas do contain caffeine in certain flavors such as Cola (45 mg), Dr. Zevia (42 mg) and

Mountain Zevia (55 mg). Zevia gets its caffeine taste from the coffee bean so it is still considered

all natural (“Zevia faqs,” 2012).

“Natural Flavors” are listed on all Zevia sodas. Zevia will not disclose all the ingredients

used in its flavorings because it wants to remain original and not be copied. Zevia encourages

customers to email it if there is an ingredient it is concerned about. Zevia offers 15 flavors that

consist of Black Cherry, Caffeine Free Cola, Cherry Cola, Cola, Cream Soda, Dr. Zevia, Ginger

Ale, Ginger Root Beer, Grape, Grapefruit Citrus, Lemon Lime Twist, Lime Cola, Mountain

Zevia, Orange, and Strawberry (“Zevia faqs,” 2012).

33

Aluminum cans are Zevia’s choice of packaging. Zevia chose this type of material for the

environment, stating that it is two times more likely to get recycled. Zevia is also concerned with

weight and shipping so aluminum seemed to be the right way to go to do right by its customers

(“Zevia faqs,” 2012).

To encourage consumers to try Zevia, the company offers coupons that can be obtained

through its website. Zevia is sold at leading retailers like Wholefoods, Super Target, health food

stores and online stores like Amazon.com. Large chain grocery stores like Kroger also carry

Zevia (“Zevia faqs,” 2012).

The brand’s image really does not represent anything unique. It is packaged in an

aluminum can that is the same packaging as the major Carbonated Soft Drink (CSD)

manufacturers. The label shows the Stevia leaf but the consumer wouldn’t know that by looking

at the brand unless you read that it is an all natural sweetener. It does state clearly, however, that

it is all natural and zero calorie, zero sugar. From the survey that the group conducted on the

product, the group discovered that most people haven’t heard of Zevia and are not familiar with

Stevia. However, out of the 43 responses received for knowledge of the sweetener used, 28 of

the respondents did not know what sweetener was used in its soft drink of choice in general.

While three people have heard of Zevia, only one respondent could rate the taste of Zevia. The

brands image is not familiar with the general public as our survey confirmed and the general

public is not familiar with Stevia as a sweetener that identifies Zevia as a health benefit for

which it is marketed.

More health conscious individuals know it should avoid sugar but people still enjoy the

bubbly fizz of soda pop and find it hard to resist. Newer brands of all natural soda pop are

becoming more popular on grocery stores shelves. These brands carry an increasing amount of

34

flavors, are sweetened differently, some are organic some are marketed to be exotic, and all are

low in calories (Brown, 2011).

Over a hundred years ago, soda pop began to have problems. Manufacturers replaced

natural flavors with artificial flavors. Sweetener was changed from fructose to corn syrup and

bottles were replaced by aluminum cans. Finding a good soda became nearly impossible by the

1980’s because of these changes (LaTampa, 2005).

According to Kim Lopez-Walters, food and beverage senior director and consumer

strategist for Iconoculture, the carbonated beverage is suffering from a broader issue, “The

category is declining because it’s become a commodity. What’s missing in many large CSD

brands is that people don’t connect with it. These brands are not very special or unique” ("Health

trend gives," 2007, Para. 4).

Consumers wanted more natural flavors in soda pop and entrepreneurs began creating an

array of all natural soda with natural flavorings that can be found everywhere that soda

beverages are sold. Having a soda can be nostalgic for adults. It takes the consumer back to the

time when soda in the mass-market place was made from real ingredients, not artificial ones. An

adult experiences complexity in a soda compared to a child who just wants to drink it. The adult

experience of drinking a natural soda is a series of senses exploding from the aroma, the way it

feels in your mouth and the complexity of the how it taste. A soda is drinking something that

creates a fun experience (LaTampa, 2005).

Zevia was created as an answer to products created by Coke and Pepsi that is not as much

a natural product. It is the first product to use the natural ingredient, Stevia. The product has

increased eight fold since being created in 2008. Zevia was originally launched to be a dietary

supplemental product ("Two small beverage," 2012).

35

Stevia has received Federal Drug Administration (FDA) approval for “Generally

Regarded As Safe” (GRAS) approval as a food additive. However, it has served as a double

edged sword to companies like Coke, because Zevia will use this as an opportunity to use

GRAS’s in its products as well. Zevia feels that it will have a highly competitive advantage in

meeting consumers demand to be rid of artificial sweeteners ("Two small beverage," 2012).

The Huffington Post conducted a taste test and Zevia came in last out of 14 all natural

sodas tested. Reed’s Ginger Brew and Spindrift tied for first place in the taste test. The flavors

tested were Black Cherry, Caffeine Free Colas, Cola, Cream Soda, Dr. Zevia, Ginger Ale,

Ginger Root Beer, Grape, Grapefruit Citrus, Lemon Lime Twist, Mountain Zevia and Orange.

The most notable flavors were Black Cherry and Original Cola. The most distinctive comment

was the artificial after taste and how strong it is. However, it was noted that drinkers of diet soda

pop products would definitely relate to it and like it ("The best natural," 2011).

36

COMPETITION

ANALYSIS

37

COMPETITION ANALYSIS

The competition in the all-natural soda market is very large. When shopping for Zevia at

King Soopers in Fort Collins, Zevia was shelved in the same proximity to other competitors in

the all-natural soda category. This information serves as bases to conduct the competition

comparisons.

Hansen’s Sodas appear to be a very close competitor to Zevia. There is a striking

resemblance in its packaging compared to Zevia in that both companies use aluminum cans.

However, the Hansen brand is more identifiable with the general public because it has been on

the market longer. Hansen’s is proud that its soda is “missing a lot of stuff.” It doesn’t use

caffeine, artificial flavoring or colors. It uses only really fruit flavors, real spices, real sugar, and

zero-calorie Splenda (made from real sugar) or Truvia (made from the Stevia plant). Hansen’s

offers a large variety of flavorings with eight being in the diet category, 13 listed in the non-diet

category and Club Soda, Tonic Water and Ginger Ale is listed separately on its website.

Hansen’s also manufactures Blue Sky and Blue Sky Free all natural soda and regardless of the

brand of soda, its ingredients are the same in all its product offerings ("Explore our brands,"

2012).

Hansen uses Ambassadors and Blue Sky’s Wanderers to get out and meet both of its Blue

Sky and Blue Sky Free target audiences. The Ambassadors and Wanderers travel in a

Volkswagen bus and greet its fans with free soda. The Ambassadors and Wanderers document its

travels using Facebook and Twitter and utilize blog pages to keep fans up to date on events and

travel experiences. Hansen and Blue Sky occasionally hand out t-shirts and other promotional

items it refers to as “schwag” ("We're social," 2012).

Blue Sky Free is the direct competitor with Zevia because it has zero calories. Blue Sky

38

Free offers Free Lemonade, Free Mandarin, Free Cola, Free Creamy Root Beer, Free Jamaican

Ginger Ale, Free Cherry Vanilla Crème and Free Lemon Lime with zero calories ("Explore our

brands," 2012).

Blue Sky Natural offers natural cane sugar drinks with four flavors, three Seltzer drinks,

five organic drinks and 12 drinks under the real sugar category on its website. Each drink has

between 130 calories and 190 calories depending on the flavor of the soda ("Explore our brands,"

2012).

When you link the Blue Sky website through the Hansen’s website, it has a tab for the

“Stevia Challenge” that directs you to its Facebook page. However, when you click on the icon,

it doesn’t explain what the “Stevia Challenge” is. It just directs you to other social media links it

is using and provides company information ("Blue sky Stevia challenge," 2012).

Izze is an all natural soda that claims good taste comes naturally. It uses fruit juices in

sparkling water without refined sugars. The first flavors that it introduced to the market were

Blackberry, Lemon, Grapefruit and Pear. The healthy sector of the market responded favorably

especially mothers with children, hip singles and celebrity personalities. Currently, Izze offers

six flavors that include: Sparkling Lime, Sparkling Blueberry, Sparkling Peach, Sparkling

Blackberry, Sparkling Apple, and Sparkling Nectarine. The product contains 70% fruit juice with

a splash of sparkling water and doesn’t explain the sweetener it uses. Izze’s products are all

caffeine-free and contain 130 calories ("About izze," 2012).

Izze has an online product store that sells apparel, accessories, drinkware and gifts. It is

active on Twitter but doesn’t represent Facebook on its web page. Izze interacts with its

customers through “Izze Art,” where it displays photography that customers send it interacting

with Izze products, as well as other opportunities to create something artful for Izze and share it

39

("Create and share," 2012). It produces a blog that shares event experiences that it has

participated in or will participate in promoting the Izze products ("Blog," 2012).

Santa Cruz Organic sparkling beverages is organic and made of “zippy” flavors,

according to its website. Its full line of flavors include: Ginger Ale, Lemon Lime, Lemon,

Mango Lemonade, Orange Mango, Pom Limeade and Raspberry Lemonade and Root Beer

sparkling beverages. Each drink contains between 100 to 140 calories. Santa Cruz Organic

products contain no artificial ingredients but are tingling to the senses. Santa Cruz Organic is

different because it offers USDA certified organic soda options ("Sparkling beverages," 2012).

Santa Cruz Organic touts that it’s committed to education and ecology with the intent to

raise awareness about the benefits of organic agriculture. It is proud that it’s a Green-E certified

business because it reduces waste and recycles 96% of its products. Santa Cruz Organic is in the

process of offering an online coupon to its customers that can be printed off of its website for

future discounts. The public outreach is focused on the environment instead of contest and social

media reach to its target audience ("Sparkling beverages," 2012).

Jones Soda Co. was formerly known as Urban Juice and Soda Company, Ltd. until

August 1, 2000. Jones uses unique packaging and it constantly change out their labels to use the

customer generated labels. Jones is unique in its marketing strategies and as the website states, it

has created a cult following. Jones is very interactive with its customers through contests and

visiting its customers from coast to coast in the Jones RV. Jones soda is made from pure cane

sugar and it offers the following flavors: Cola, Strawberry Lime, Green Apple, Cream Soda,

Root Beer, Berry Lemonade, Bubble Gum and Fufu Berry. It uses natural flavoring but doesn’t

state the calories of its drinks ("Jones products," 2012).

40

PROBLEMS AND

OPPORTUNITIES

41

COMPANY PROBLEMS AND OPPORTUNITIES

Problems

Zevia just cannot compete with larger soda makers in terms of dollars. The company is

much smaller and only made $3 million in 2009 (Dietrich, 2009), which is dwarfed by larger

soda sellers like Coca-Cola. Due to this, Zevia cannot just throw around advertising dollars

around like larger soda companies do. The company will have to utilize more inexpensive ways

to advertise. Zevia cannot afford to run advertisements on primetime television, so different

media will need to be utilized.

Zevia has a major problem is that Zevia has poor brand awareness. The vast majority of

the survey participants had never heard of Zevia. The survey users came from different areas of

the country so it is reasonable to assume it needs to use heavy and well spent advertising to get

its name out there more often. Again, it will not be easy to compete with the larger soft drink

makers, but it can be done. Once the consumer learns Zevia does not use sugar, it has a huge

advantage.

The price of the product is another weakness of the company. Zevia is not yet big enough

to where it can lower the price to compete with other soft drinks. Unfortunately, this is a major

hurdle. Zevia costs much more than the average soft drink. On Amazon, the cheapest a 24-pack

can be purchased for is $27. No matter how much a consumer would eventually like Zevia, the

company needs to heavily use coupons and stretch its budget to get the price down as much as it

can to entice new consumers to try its product.

42

Opportunities

Zevia could fill a pretty important niche if trends in obesity keep continuing the way they

are. Obesity is becoming an epidemic among multiple age groups, and sugary beverages are

thought to be one of the causes (Lavizzo-Mourey, 2009). Since Zevia’s product does not use

sugar, it can make itself stand out by noting the company is not contributing to the obesity

epidemic and in fact, the company could argue it is fighting against it. If there was a massive

shift to sodas that did not use sugar, Zevia would already have a head start. Moreover, it would

have a public relations boost over companies like Pepsi and Coca-Cola. It could simply note the

products the company sells that have never used sugar, unlike the rival companies’ drinks.

Based on the survey, the idea of a soda that is actually healthy would be very appealing.

Most of the survey participants said that soft drinks could never be considered healthy. If Zevia

could change the opinion, the company would have a unique identity. While Pepsi and Coca-

Cola do sell numerous all natural products, it would be unlikely for anyone to perceive their soft

drinks as healthy.

If Zevia could convince consumers that Zevia products are healthy, Zevia can sweep up

the all natural, diet cola, and regular cola users who want to cut down on sugars, as well as those

who would want to drink soda but do not because these users do not like the nutritional content.

43

OBJECTIVES

44

COMMUNICATION OBJECTIVES:

1). To boost brand awareness.

Zevia is a new product that is not familiar to most consumers. Without having brand

awareness, you can’t expect the consumer to have brand loyalty. In order to address this

problem, an advertising campaign was developed to help promote brand awareness within the

target audience. The campaign will promote Zevia as the product name with the assistance of an

icon bubble man to attach association to the brand to influence perceptions. By creating strong

brand awareness, the consumer will realize the product has substance with health benefits. A

well-known awareness of the brand tells the consumer that others have found the brand and like

it so it will have more confidence in trying it. Top of mind awareness is key, so that consumers

consider Zevia first when selecting an all natural soda.

2). To create overall trust with target customers.

Through our advertising campaign, a focus on Zevia’s healthy product qualities is

addressed. The television and radio advertisements highlight Zevia as an all natural soda, that

contains zero calories and zero sugar made from the botanical sweetener, stevia. By focusing on

these qualities of the product, it will promote Zevia in a unique way compared to its competitors.

Overall, the campaign takes a look at the health benefits of Zevia in developing trust with the

potential target consumer with health issues or consumers that are interested in products that

promote healthy living to match its lifestyle.

3). To create greater demand for Zevia products.

Since Zevia is still a fairly new product, a coupon will entice the consumer to try Zevia

from the direct mailer piece. It will be a way to get the consumer who usually drinks diet soda to

try Zevia because it is zero calories and zero sugar that contributes to a healthier lifestyle than

45

diet soda. By using a coupon, it will help to draw in new sales since Zevia is a new product that

the consumer is unfamiliar with. It will also encourage repeat purchases that will in turn, increase

sales of Zevia. When the consumer has tried Zevia and discovers that it’s fresh and bubbly and

provides healthy alternatives to diet soda, Zevia will become the brand he or she prefers over all

others in the diet soda and all natural soda category. The coupon will be delivered to the

consumer’s mailbox through a direct mail piece for $1 off for the convenience of trying Zevia

and create an incentive to try Zevia. The company will also benefit from the use of the coupon to

learn about consumer purchasing behavior to assist in identifying target markets for the product.

CREATIVE OBJECTIVES

1). To get the consumer to associate Stevie the Bubble Man with Zevia for its bubbly

qualities.

Stevie the Bubble Man was created for the advertisement campaign to influence the

perception the consumer has with the product Zevia. The brand alone is very basic and doesn’t

leave much to remember. Stevie the Bubble Man will act as a spokesman for the product by

always being followed by a trail of bubbles. When first trying Zevia, the consumer will notice

the tingly sensation it leaves in their mouth, which is caused from the bubbly taste. Stevie will

deliver the message that after trying Zevia, “You’ll have to admit, it’s fresh and bubbly.” This

tag line was created to entice the consumer to try the beverage and experience the bubbly

qualities of Zevia. He will adapt to the advertising message but will always be associated with

the Zevia soda can and tagline.

46

2). To increase brand insistency over Zevia's competitors.

Zevia wants to be the brand a customer strongly prefers when deciding on an all natural

soda or switching from diet soda and/or regular soda. When the customer goes to the store to

purchase Zevia and it is unavailable, he or she will go out of their way to find Zevia at another

store and not accept a substitute brand. To assist the consumer when it arrives at the store, a floor

decal of bubbles and the Zevia logo will be at the aisle where Zevia is shelved. The intent of this

point of sale (other advertising option) is to get the consumer to overlook all other brands on the

shelf and select only Zevia. By following the Zevia logo and a trail of bubbles, it will help the

consumer find the Zevia shelving, followed by another $1 off a 6-pack coupon to help finalize

the purchase. Creating this type of brand loyalty will give Zevia the competitive advantage over

its competitors.

3). To demonstrate to potential customers how the brand will enhance their healthy choice

lifestyles.

The advertisement campaign was designed to show that soda isn’t a bad word any more.

For people who have diabetes and the high percentage of individuals that are obese, Zevia soda

offers them a safe alternative to artificial sweeteners with the botanical sweetener, stevia. Stevie

the bubble man adds a dimension to just soda by promoting the product as fresh and bubbly. The

design of the web banner, bus banner and through the message that is conveyed on the radio and

video, Zevia is all natural soda that is zero calories with zero sugar. Since this may not be

appealing to the average soda drinker, Stevie the Bubble Man will entice them into trying Zevia

by telling the consumer that it will have to admit that it is fresh and bubbly after it experiences

the all natural taste that creates a tingly sensation in the mouth.

47

MEDIA OBJECTIVES

1). To generate exposure about the brand.

Since Zevia is a new product, the advertisement campaign will focus on exposing the

brand and letting customers know about the product. This will be performed through a video on

YouTube, radio, web, outdoor, direct mailer advertising and point of sale floor decals guiding

consumers to the product on the shelf at natural food retailers. All of advertisements feature

Stevie the Bubble Man and the campaign slogan, “You’ll admit, it’s fresh and bubbly.” The icon

of the Bubble Man will promote brand association to a healthy, all natural soda and will establish

top of mind awareness to the target audience.

2). To increase sales by 10% at point of sale.

Floor decals will be laid on the floor of the soda aisle in the grocery store to guide the

customer to the location of Zevia on the all natural soda shelf. Since Zevia is a new product the

customer may not be aware of it. By guiding the consumer to the Zevia, it will entice the

customer to want to try it over the competitors located in the same location because a $1 off a 6-

pack of soda coupon will be offered as an incentive.

3). To enhance Zevia’s image to current and potential customers.

The Zevia image will be enhanced by promoting the product on outdoor advertising.

Advertising on a bus side panel that travels a highly populated route to achieve maximum

exposure to the consumer will be utilized. Radio will enhance the Zevia message because it

offers a platform for repetition of the product information. The website will be announced in the

radio advertisement for customers to visit for more information. By running the spot over and

over, it will stay in the mind of the consumer to help them remember the product. By delivering a

coupon to the consumer through the direct mail piece, it will be delivered directly to the

48

consumer with a $1 off a 6-pack coupon to entice the consumer to try Zevia. The consumer may

have already heard about it on the radio or noticed it on the side of the bus and, with the coupon,

it will intrigue the consumer even further to try it. For both target audiences, there will be an

animated banner ad placed on Diabetes Forecast, Prevention, and Health to help create

awareness of the Zevia brand and product.

Public Relations

Public Relations can be used to help Zevia raise consumer awareness. This can be

achieved by reaching out to the consumer on a national level by using print and media outlets

such as the radio spot, bus advertisement, direct mailer piece and video to continue on expanding

the Zevia product as a fresh and bubbly experience although it is associated with being healthy.

Stevie the Bubble Man will enhance Zevia by providing product association that Zevia is just not

a healthy, all natural soda but that “You’ll admit it’s fresh and bubbly.”

Sales Promotions

To promote sales, the advertisement campaign has incorporated a $1 off 6-pack coupon

to entice consumers in to try Zevia. The coupon will be used in the direct mailer piece and

delivered directly to the consumer in its mailbox for the convenience of trying Zevia. A coupon

pad will be placed on the grocery store shelves where Zevia is located. As the consumer is

searching for an all natural alternative to soda, the coupon will help entice them to choose Zevia

over the other competitors located in the same location.

Direct Marketing

These days, customers are much more connected through social media. The consumer

can read comments about the product and get a lot of information on the Internet or via friends.

Therefore, it is important to create a positive word-of-mouth effect about the brand. Since Zevia

49

is a new product, by utilizing direct marketing to boost Zevia’s website, blog, and social media

connections, a video advertisement would help create buzz. The second target audience will be

more involved in our direct marketing because it is more familiar with social media. To allow the

second target audience to respond to the product, Zevia’s blog and social media connections will

offer this platform and will be updated daily to help create brand awareness and consistency.

50

BUDGET

51

Media Vehicle Price Percentage of Budget

Bus Ads (Outdoor) $270,000 13%

Direct Mailer $760,000 38%

Floor Decals (Other) $20,000 1%

Radio Ad $810,000 40%

Web Banner Ad $90,000 5%

YouTube Video $20,000 1%

Miscellaneous Expenses $30,000 2%

Total $2,000,000 100%

Bus Ads14%

Direct Mail38%

Floor Decals1%

Radio Ad41%

Web Banner Ad5%

YouTube Video1%

Miscellaneous expenses2%

Budget

52

The majority of the budget is spent in two areas: radio and direct mail advertising.

Radio totaled $810,000 (40.5%). Radio advertising will be placed during times when

listenership is the highest during rush hour times in Los Angeles, Seattle, and Denver. Three

advertisements will be played daily in each market, for the entire duration of the campaign. Cost

was determined based on the handout received at the beginning of the semester. In addition,

radio stations matching the demographics and psychographics of Zevia’s target audience helped

in determining what radio stations Zevia’s radio advertisement will be played on. The goal with

the radio advertisement is to reach a variety of consumers in one message, which will help with

brand awareness.

Direct mail totaled $760,000 (38%). Direct advertising holds a higher percentage of the

budget because the direct mailer has a coupon that the consumer can utilize, which makes the

mailer more valuable. Since Zevia is a fairly new product, a coupon on the direct mailer will help

entice consumers in trying the products Zevia offers. The direct mailer will be sent out to women

in each of the three markets of Los Angeles, Seattle, and Denver. After looking at jumbo

postcard pricing from various websites, the cost was determined by the three markets, which

approximately 2,000,000 women reside in, according to our research. Based on these numbers, a

large portion of our budget is spent on production and postage.

The next portion of our budget was spent on bus banner advertising, which $270,000

(13.5%) was spent on. After researching the metro transit systems, the group decided to run 35

buses in Los Angeles, 25 buses in Seattle, and 15 buses in Denver, based on the demographic

populations found in the research. To place a king-sized banner on one bus, the banner cost $600

per advertisement, per four week time period. Since the campaign runs six months, the total cost

of advertising will be $126,000 for Los Angeles, $90,000 for Seattle, and $54,000. Bus banner

53

advertising is effective because reach and frequency is consistent in high traffic areas, which the

three demographic cities are in.

The web banner advertisement costs $90,000 (5%). After researching MRI+ fall 2010

media, the group discovered similar magazines with the primary and secondary markets, which

lead the group to conclude that Diabetes Forecast (159), Prevention (140), and Health (141)

magazines are the best websites to feature a web banner advertisement on. In order to determine

pricing, the group looked for impressions, which the group found as 250,000 for

Diabetesforecast.com. Based on these numbers, the group was able to determine that each

website would cost $5,000 per month and a total of $30,000 over a six-month period. Since the

web banner advertisement is featured on three websites, $90,000 was the total approximate cost

of web banner advertising on three sites. Web banner advertising is effective because the reach

and frequency is consistent with the psychographics and characteristics of our primary and

secondary target audience.

Floor decals (other advertising) and the YouTube video accounted for $20,000 (1%).

The floor decal, which the group chose as the other advertisement would cost $20,000

(1%). The floor decal would be featured at natural food stores like Whole Foods as a way to

entice and help the shopper follow the Zevia logo and bubbles directly to where Zevia is placed

within the specific aisle of the food retailer. In addition, once the consumer reached the Zevia

position, a coupon will be offered as an additional incentive to choose Zevia over the competitor.

Based on the three cities, 70 natural food stores in Los Angeles, 20 in Denver, and 20 in Seattle

will feature the floor decals. After receiving a quoted price from Kinko’s, the production cost for

the floor decals was approximately $66 per floor decal, totaling $7,260 for all 110 stores. Since

actual store placement costs needed to be considered, the group took $7,260 and multiplied it by

54

two to cover the actual store placement costs, totaling now $14,520. The remainder of the

money, $5,480, will be spent on producing the coupons that will be used at the point-of-sale. At

seven cents a coupon, approximately 78,286 coupons will be produced to add to the floor decal

advertising. The overall cost will be $20,000.

The YouTube video accounted for $20,000 (1%). YouTube is a free website that allows

the user to upload videos. While it is free to upload videos on YouTube, actual production of the

video will be needed. Since the video does not require live actors, animators will be used to

create the video, which the $20,000 accounts for. While it was difficult to find actual production

costs, $20,000 was a high estimated cost. A YouTube is easily shared and accessible to different

kinds of viewers and is not limited to the amount of times the consumer can view the video. In

addition, the YouTube video could easily be posted on social media sites, Zevia’s website and

blog. Overall, the YouTube video will provide an easy and effective way to target the secondary

market, which is a tech savvy younger generation of users.

The last portion of our budget will be spent on miscellaneous expenses, which will be

$30,000 (2%). Since costs are unpredictable, the group decided to allocate the rest of the budget

to cover unexpected emergencies.

55

SCHEDULE

56

2012 Bus Banner

Direct Mailer

Floor Decals

Radio Web Banner

YouTubeVideo

June

July

August Sent outJuly 1st, one time

September

October

November

In order to maximize the advertising campaign results, the group decided to separate the

campaign into two different parts to create a progressive campaign that introduces Zevia to the

consumer, followed by a strong presence in August that will last the remainder of the six-month

period and continue on past the six-month period. In June, floor decals, web banners, and a

YouTube video will be utilized. These are subtle ways that the consumer can be introduced to

the product, creating a sense of curiosity. In August, bus banners, a direct mailer, and radio

advertising will be utilized. Since these three forms of advertising are the most expensive in the

budget, the group decided it would be best to utilize these forms a couple months into the

campaign, to guarantee budget safety and campaign success. If the campaign is successful by

August, a sense of curiosity has been built with the consumer and now these consumers will be

looking for the next step of the Zevia campaign, which these promotions will attend to. With this

portion of the campaign, the consumer will now understand and pay closer attention to the

different forms of Zevia advertising due to their immediate presence and magnitude.

57

RECOMMENDATIONS

58

Zevia has a unique selling proposition in that it uses Stevia, rather than cane sugar or high

fructose corn syrup in its product. This feature of the drink cannot be neglected. Since obesity

and diabetes are epidemics, this will help Zevia also stand out in stark contrast from its

competitors. Consumers looking to lose weight or diabetics not wanting sugary drinks can turn to

Zevia instead of other sodas. This is why the group recommends Zevia never stop emphasizing

the use of Stevia in its products.

The data from the survey are very clear; Zevia has to go where it is not to be expected.

Since most of the users will not go to specialty food stores that probably stock Zevia, such as

Whole Foods, Zevia will have to make deals to get in the larger grocery store chains in the

future. For this campaign, the group focused on natural food stores for this stage in the product’s

life. Natural food stores are a natural fit and these grocers will have no problem stocking the

product. For future campaigns, the group is recommending Zevia will have to make it into a wide

variety of stores. The company will also have to figure out a way to get into vending machines.

While many purchase Zevia online through mass retailers like Amazon.com, most consumers

will not bother to take the time to order Zevia online and pay for the additional shipping,

indicating that Zevia needs to expand into new areas.

Zevia has a hurdle to overcome in terms of price. Even though advertising highlights that

the soda doesn’t have calories or sugar, the price could still scare off potential buyers. To remedy

this, the group is using coupons heavily throughout this campaign. Consumers will try something

new if they can get a good deal on it. The group also thinks heavily pushing the bubbly and

nutritious angle will help somewhat with the price. The consumer might think they are saving

money in the long run if they are healthier and have fewer health problems. In the future, the

59

group recommends Zevia finds a way to bring down the price of its drinks. Once it accomplishes

this, it will have a much easier time attracting regular and diet soda drink users.

At this stage in the company’s life, where it does not have the revenue for heavy amounts

of traditional advertising, the web will have to be utilized heavily. This campaign uses the

internet for some of the advertising. In particular, the group thinks Zevia should focus on using

viral marketing. In addition to the YouTube video, which could potentially catch on and be

spread on social media, Zevia will have to use as much viral marketing as possible. The soda

maker should have a full-time team that only produces web content that can easily be sent

through Facebook, Twitter, or blogs. The team can still make professional videos and other kinds

of web ads and still operate on a much smaller budget than normal advertising would require.

This extensive use of viral marketing will help the company build a strong base of customers.

60

REFERENCES

61

Blog. (2012, March 31). Retrieved from http://www.izze.com/blog/

Blue sky Stevia challenge. (2012, March 31). Retrieved fromhttp://www.blueskysoda.com/

Brown, K. (2011, Jun 30). Natural flavors make specialty sodas tasty. Tulsa World, pp. WK.5. Rhttp://search.proquest.com/docview/874375833?accountid=14793

Charles, D. (2012, February 06). California's Stevia growers bet on fast track to sweetener success. Retrieved from http://www.npr.org/blogs/thesalt/2012/02/06/146309816/californias-Stevia-growers-bet-on-fast-track-to-sweetener-success

Create and share. (2012, March 31). Retrieved from http://www.izze.com/create/

Denver, co - zip code datbase information. (2012, April 17). Retrieved from http://www.zip-codes.com/city/CO-DENVER.asp

Dietrich, H. (2009). Zevia inks deal with Whole Foods. Puget Sound Business Journal.

Lavizzo-Mourey, R. (n.d.). The Adolescent Obesity Epidemic. Journal of Adolescent Health, S6-S7.

Explore our brands. (2012, March 31). Retrieved from http://www.hansens.com/us/en/products/soda/blue-sky-free/

Foley, A., & Bigano, L. (2011, March 28). Sweet green fields selected by zevia natural soda as exclusive Stevia provide; all Stevia will be grown in us. Retrieved from

http://www.reuters.com/article/2011/03/28/idUS202771+ 28-March-2011+MW20110328

Franklin, H. (2012). Natural Stevia based sweeteners for your health. Ezine Articles, Retrieved from http://ezinearticles.com/?Natural-Stevia-Based-Sweeteners-for-Your-Health&id=680026

Gardner, R. (2012, March 31). Sweet green fields and zevia sign multi-year Stevia deal. Retrieved from http://www.nutritionaloutlook.com/news/sweet-green-fields-and-zevia-sign-multi-year-Stevia-deal

62

James, A. (2008, August 27). Seattle-based zevia selling all-natural, zero-calorie drink. Retrieved from http://www.seattlepi.com/business/article/Seattle-based-Zevia-selling-all-natural-1283503.php

Jones products. (2012, March 31). Retrieved from http://www1.jonessoda.com/files_4/products-glass.php

LaTampa, S. (2005, August 17). Complex, nuanced: this is soda pop. Los Angeles Times. pp. F.1. Retrieved from http://search.proquest.com.proxy.uwlib.uwyo.edu/docview/422001084?accountid=14793

Los angeles, ca - zip code datbase information. (2012, April 17). Retrieved from http://www.zip-codes.com/city/CA-LOS-ANGELES.asp

Marketing Weekly News. (2011). Truvia(R) Brand; The #1 Natural Calorie-free Sweetener in the US, Truvia(R) Partners With Leading Sugar Companies in Europe on Eve of European Approval. Marketing Weekly News , 1421.

MRI+ (2010). Fall 2010 Product: Beverages. Artificial Sweeteners. Used in last 6 months Splenda. Adults. Retrieved from http://ureporter.mriplusonline.com/xt_createsinglereportxls.asp?VolumeID=219&ReportSet=5&ReportID=C38B1I1409

MRI+ (2010). Fall 2010 Product: Beverages. Artificial Sweeteners. Used in last 6 months

Truvia. Adults. Retrieved from http://ureporter.mriplusonline.com/xt_createsinglereportxls.asp?VolumeID=219&ReportSet=5&ReportID=C38B1I1411

MRI+ (2010). Fall 2010 Product: Beverages. Diet Cola Drinks. Drank in last 6 months total. Adults. Retrieved from http://ureporter.mriplusonline.com/xt_createsinglereportxls.asp?VolumeID=219&ReportSet=5&ReportID=C302B1I1547

MRI+ (2010). Fall 2010 Product: Beverages. Other Diet Soft Drinks, Not Colas. Drank in last 6 months total. Adults. Retrieved from http://ureporter.mriplusonline.com/xt_createsinglereportxls.asp?VolumeID=219&ReportSet=5&ReportID=C687B1I6476

Paddy spence and northwood ventures announce strategic investment in zevia®, a rapidly growing zero calorie natural soda brand. (28, September 2010). Retrieved from http://www.prweb.com/releases/2010/09/prweb4571964.htm

63

PRIZM (2011) Market Profiles Reports: Lifestyle Ranking Index. Designated Market Area:Denver, Co. Lifestyle Category: Psychographics. Retrieved fromhttp://www.claritas.com/SRDS/content/print_template.jsp?reportName=Market ProfilesReports: Lifestyle Ranking Index&ms=1334708541962

PRIZM (2011) Market Profiles Reports: Lifestyle Ranking Index. Designated Market Area: Los Angeles, CA. Lifestyle Category: Psychographics. Retrieved from http://www.claritas.com/SRDS/content/print_template.jsp?reportName=Market Profiles Reports: Lifestyle Ranking Index&ms=1334708485830

PRIZM (2011) Market Profiles Reports: Lifestyle Ranking Index. Designated Market Area: Seattle-Tacoma, WA. Lifestyle Category: Psychographics. Retrieved from http://www.claritas.com/SRDS/content/print_template.jsp?reportName=Market Profiles Reports: Lifestyle Ranking Index&ms=1334708432368

Quantcast. (n.d.). Zevia.com traffic and demographic statistics. Retrieved from Quantcast: http://www.quantcast.com/zevia.com/demographics

Seattle, wa - zip code datbase information. (2012, April 17). Retrieved from http://www.zip-codes.com/city/WA-SEATTLE.asp

Sicher, J. (2011, March 17). Special issue: Top-10 csd results for 2010. BEVERAGE-DIGEST.Retrieved from http://www.beverage-digest.com/pdf/top-10_2011.pdf

'Soda' no longer four-letter word for diabetics thanks to culver city company. (2012, March 09). Retrieved from http://losangeles.cbslocal.com/2012/03/09/soda-no-longer-four-letter-word-for-diabetics-thanks-to-culver-city-company/

Sparkling beverages. (2012, March 31). Retrieved from http://scojuice.com/

The best natural sodas: our taste test results. (2011, November 20). Huffington Post. Retrieved from http://www.huffingtonpost.com/2011/09/13/the-best-natural-sodas_n_960188.html

Stein, L. (2012, February 23). Zevia selects extension pr to boost brand awareness. Retrieved from lexisnexis.com.proxy.uwlib.uwyo.edu/hottopics/inacademic

Two small beverage producers step lively against big brands, win marketshare. (2012, March 30). Small Business Digest. Retrieved from www.2sbdigest.com/Battling- Brands-Successfully

(2007). Health trend gives soda segment pop. Top Consumer Trends, 29(8), 134,140. Retrieved

64

from http://search.proquest.com.proxy.uwlib.uwyo.edu/docview/204863615?account=14793

We're social. (2012, March 31). Retrieved from http://www.hansens.com/us/en/about-us/social/

Zevia faqs. (2012, March 31). Retrieved from http://www.zevia.com/

Wood, L. (2011, May 6). Research and markets: Us soft drinks market analysis - us sales of nonalcoholic energy drinks projected to reach usd 9 billion in 2011 . Retrieved from http://www.businesswire.com/news/home/20110506005600/en/Research-Markets-Soft-Drinks-Market-Analysis--

Zevia is the #1 brand in the northwest. (2009, August 17). Retrieved from http://blog.zevia.com/2009/08/zevia-is-the-1-brand-in-the-northwest/

65

VIDEO

ADVERTISEMENT

VIDEO ADVERTISMENT EXPLANATION

66

The video advertisement incorporates the overall campaign theme of “You’ll admit, it’s

fresh and bubbly.” Similar to the radio advertisement, Stevie the Bubble Man is the main

character. In this video, Stevie is a playful bubble that loves Zevia and all of its flavors. Stevie

helps promote the lifestyle, product details, and overall campaign theme in a short video. Due to

budget constraints, this television advertisement will be featured on YouTube, where consumers

will have unlimited viewing access and the video can easily be added to Zevia’s website and

blog, in addition to its various social media sites.

In this video, Stevie is presented to the consumer in front of a white background, where

Stevie and the bubbles can be the main focus. As a soft bubble bouncing sound plays in the

background, Stevie is presented as an energetic bubble man, jumping on other bubbles as he

talks about not ‘just not being any bubble.’ As he finishes his qualities, he brings up the concept

of what Zevia is, which ties directly into creating brand awareness for Zevia and ties into the

overall campaign theme of “You’ll admit, it’s fresh and bubbly,” which asks the consumer to

give Zevia a try. Following this scene, Stevie highlights Zevia product features as he’s sitting on

a can of Zevia. This portion is more of a conversation to inform the consumer about Zevia. Since

Stevie is an energetic bubble, he decides to jump onto Zevia cans, telling the consumer they can

try the 15 different flavors of the Zevia product. Finally, he stops at the edge of the can and pops

open a Zevia can and tells the consumer, “You’ll admit, it’s fresh and bubbly!”

67

68

DIRECT MAIL

ADVERTISEMENT

69

DIRECT MAIL ADVERTISEMENT EXPLANATION

The direct mailer piece is tied into the overall theme of the campaign, “You’ll admit, it’s

fresh and bubbly,” while giving the consumer an incentive to try Zevia with a coupon. The direct

mailer piece will be sent to women in each of the three target audience cities.

The front of the mailer piece features the flavors of Zevia on the left hand side, while

promoting the campaign, “You’ll admit, it’s fresh and bubbly” on the right hand side of the

mailer piece, along with Stevie the Bubble Man holding the campaign title in a flow of bubbles.

The background is white, to keep consistent with the overall color theme. The front of the mailer

piece is to promote the images used in the overall campaign, helping bring brand awareness and

association to the various themes created for Zevia.

The backside of the mailer piece features the incentive. On the left hand side of the

mailer piece, a large $1 off a 6 pack of Zevia is featured for the consumer to use on Zevia

products. The main concept behind the coupon was to product brand awareness and insistence.

Since Zevia is a new brand to most consumers, a direct mailer piece would attract attention and

help the consumer keep the mailer in mind once the consumer goes to the local grocery store to

purchase items, hopefully one of which is Zevia. The right hand of the mailer piece features a

light flow of bubbles, exact match to the front page, where the postage details are present.

70

71

72

WEB

ADVERTISEMENT

73

WEB ADVERTISEMENT EXPLANATION

The web advertisement is tied into the overall theme of the campaign, “You’ll admit, it’s

fresh and bubbly.” In the banner advertisement, which will be featured in on select websites,

including Diabetes Forecast, Prevention, and Health, has a white background, featuring the

campaign title “You’ll admit, it’s fresh and bubbly,” on the right hand of the banner, along with

Stevie the Bubble Man. On the left hand of the banner, the Zevia logo and one of the flavors of

Zevia is featured with a glass of ice and the Stevia leaf. Throughout the banner, light animated

bubbles flow, helping create a flow that leads the consumer through the entire banner. Overall,

the banner advertisement features similar concepts to the other advertisements, helping tie in the

overall campaign.

74

75

OUTDOOR

ADVERTISEMENT

76

OUTDOOR ADVERTISEMENT EXPLANATION

For the outdoor advertisement, a bus banner advertisement is used. The bus

advertisement is tied into the overall theme of the campaign, “You’ll admit, it’s fresh and

bubbly.” In the bus advertisement, which will be featured on buses in Los Angeles, Denver, and

Seattle, four varieties of Zevia flavors are highlighted on the left hand side and on the right side,

the campaign theme and Stevie the Bubble Man are featured. Light bubbles are flowing in the

background of the bus advertisement. The idea is to give the impression of a three-dimensional

illustration to help pop the illustrations in the advertisement. Overall, the bus advertisement

features similar concepts to the other advertisements, helping tie in the overall campaign.

77

78

RADIO

ADVERTISEMENT

79

RADIO ADVERTISEMENT EXPLANATION

The radio advertisement incorporates the overall campaign theme of “You’ll admit, it’s

fresh and bubbly.” Similar to the television advertisement, Stevie the Bubble Man is utilized. In

this radio advertisement, Stevie is this energetic bubble and he has to let the world know exactly

who he is and show off all his great qualities. However, since Stevie is pretty new to the world,

he decides to make the consumer guess exactly who he is and who he belongs to, which helps

promote brand awareness for Zevia and ties into the campaign theme of “You’ll admit, it’s fresh

and bubbly.”

The radio advertisement begins with SFX, a mellow and rock beat where Stevie is able to

introduce himself and his many qualities to the consumer. Next, he asks the audience to guess

what exactly he is, since Stevie knows his audience cannot see him. Following this, Stevie

addresses Zevia’s product qualities, flavors, and product locations. Before the website is

addressed, Stevie says, “You’ll admit, it’s fresh and bubbly” which ties the concepts together.

Finally, a website for more information is provided to the consumer listening to the radio

advertisement.

80

CLIENT: ZeviaTITLE: “I’m Stevie. I’m fresh and bubbly”:30

SFX: “Fresh” by Ethan Sizer (undertone, continuous).

STEVIE: Hi, I’m Stevie (STEE-VEE). I’m cool, healthy, simple, fresh, natural and delicious!

PAUSE (1 sec)

STEVIE: Can you guess what I am? I’m the Bubble Man from Zevia (ZEE-vee-ah)!

PAUSE (1 sec)

STEVIE: Zevia is an all natural soda which contains no sugar and no calories. It’s made with the

botanical sweetener, Stevia (STEE-vee-ah). Zevia has 15 flavors including Cola, Dr. Zevia, and

Mountain Zevia. You can find Zevia at Whole Foods, Kroger and other leading grocery stores.

STEVIE: Just like me, you’ll admit, it's fresh and bubbly!

STEVIE: Visit w-w-w dot z-e-v-i-a dot com for more information.

TAG: Zevia, you’ll admit. It’s fresh and bubbly.

81

OTHER

ADVERTISEMENT

82

POINT-OF-SALE ADVERTISEMENT EXPLANATION

For the “other advertisement” for the campaign, a point-of-sale advertisement was

chosen. The advertisement was designed to follow the overall theme of the campaign with the

Zevia logo and the trail of bubbles that follows Zevia in all advertisements. For this

advertisement, a floor display will be laid on the floor of the aisle where Zevia is positioned in

the grocery store. The display will feature the Zevia logo with a trail of bubbles stuck to the floor

of the aisle and will lead the consumer to the location of Zevia on the shelf. This will help Zevia

with product positioning and give the brand an opportunity to stand out amongst its competitors

on the store shelf. A coupon offering $1 off a six pack will also be displayed at this position to

entice the consumer even further to try the Zevia.

83

84

MEETING

MINUTES

85

Minutes of 1st Meeting

Date: March 20,2012

Minute Recorder: Luke

Time Began: 5:00 PM.

Time Ended: 6:00 PM

Those in Attendance: Luke, Lorrie, Sonya, Joanne

Those Absent: None

The group outlined early planning, as well as discussing what the budgeting will entail

for the project. We discussed different kinds of diet and all-natural sodas that we had already

heard of but we had not heard of Zevia, and could not name very many equivalents. The group

decided to scout out local all natural soda competition at Safeway, Albertsons, and the Food Co-

op store.

We discussed how we would be able to get feedback from people from other areas about

Zevia but determined it might be too difficult and expensive because of gas costs as well as

logistical problems.

The group agreed that getting the consumer survey designed and approved would be the

most important part to finish first.

We decided to assign certain parts of the research. For the first part the best markets were

assigned to Sonya, competition and products to Lorrie, company info to Joanna, and consumer

research to me.

Next meeting is scheduled for March 31st Saturday at 12:00 PM at Coe. The meeting

adjourned at 6:00 PM; everyone left at the same time.

86

Minutes of 2nd Meeting

Date: March 31, 2012

Minute Recorder: Lorrie

Time Began: 12:00

Time Ended: 2:00

Those in Attendance: Lorrie, Sonya, Luke

Those Absent: Joanne

The meeting was held to discuss the research we did on the topics that we assigned to

each other for the plans book from part one on March 20 meeting.

Sonya has questions on the market research analysis material she found in MRI. The

group worked together to determine who the target audience would be.

Luke came prepared with the survey written from his research on the consumer. We spent

quite a bit of time discussing the survey and making sure we had the most pertinent questions on

it to submit for approval. We made several revisions and Luke committed to revising it and

having it to everyone by the evening so he could have it approved by Cindy. The group wants to

start surveying the week of April 1 if possible.

Lorrie shared all the research she came up with on her portion for the product and

competition analysis. Her product analysis was complete with a few revisions to be made. She

needs some information from the survey to be able to complete the product analysis on the

targets usage of the product.

Joanna was having difficulties in finding company information on Zevia since its website

was very limited and they are a private company. Lorrie emailed her and suggested that she get

87

with Cindy on how to find better information. She had pretty limited information and need to

expand more on its background if possible.

Meeting #3 will be held on Thursday, April 5 at 5 in the Library. Lorrie emailed Joanna

to let her know the outcome of the meeting and when we are meeting again.

88

Minutes for 3rd meeting

Date: April 5, 2012

Minute Recorder: Joanne

Time Began: 5:00PM

Time Ended: 5:50PM

Those in Attendance: Luke, Joanne, Sonya, and Lorrie

Those Absent: None

The group discussed the writing portion of the project and the direction the group

intended to take with the target audience, advertisements, etc.

The group spoke more about the survey and when/where to send it out to receive the best

results, including trying to find surveyors outside of the Wyoming area because our target

audience will be living in Washington, California, and Colorado.

For the next meeting, the group decided that papers would be finished and editing would

begin.

Next meeting is scheduled for April 7, 2012 at 12:00pm.

89

Minutes of 4th Meeting

Date: April 10, 2012

Minute Recorder: Sonya

Time Began: 5:10 P.M.

Time Ended: 6:50 P.M.

Those in Attendance: Lorrie, Sonya, Luke, Joanna

Those Absent: None

Today we talked about problems and opportunities for the brand. We talked about how

most of the survey users did not think soda pop could ever be healthy. Another problem we listed

for Zevia is its price is much higher than normal soda and even some of its all natural

competitors.

The group also talked about various objectives as well as opportunities. We decided that

using coupons for Zevia would be a very good opportunity to offset the premium price. Another

opportunity listed was using blogs to reach out nationally at a low cost.

For our communication objectives, the group said generating exposure of the brand was

of utmost importance. We need Zevia’s image to be enhanced and have people think of it as a

healthy alternative to existing sodas and all natural competition.

In terms of creative objectives, Joanna brainstormed “Stevie the Bubbleman.” The name

is derived from Zevia’s flavoring, Stevia. The Bubbleman would be used so people could

remember Zevia and talk about it. If people remembered Stevie, they would probably remember

the brand better.

90

The group decided on using a YouTube video, a bubble man direct mail coupon deal, an

outdoor bus ad, and a web banner ad. We also checked out the R2-D2 standup at the Union for

possible ideas for a Stevie display. The meeting adjourned at 6:50 P.M.

91