Dr Pepper Highlights Individuality in “/1″ Campaign

Starting today, Dr Pepper will be launching an extension to their previous T-shirt “I’m a Pepper” campaign.  The new campaign titled “/1″ highlights the character’s uniqueness and that they are indeed one of a kind – 1/1 – truly unrivaled in what they do.  Dr Pepper’s advertising agency conducted research to ensure that those numbers represented in the video are statistically accurate, and that these people are peerless in what they do (how many models-turned-boxers do you really know out there?).  Dr Pepper says that the characters featured are real-life people and while they may not be world famous, these individuals are renowned within their respective fields (boxing, roller derby, and air guitar).

It’s worthy to note that this campaign extends to focus on Diet Dr Pepper as well.  Traditionally their commercials and features have been separate, but they have chosen to include Diet Dr Pepper as well in this campaign.  Dr Pepper TEN likely was left off because the messaging of “Not For Women” is on solid footing right now.  As seen from the commercial below, Dr Pepper wants to highlight your individuality in choosing not just Dr Pepper, but also Diet Dr Pepper

So would you rate these commercials as successful?  Do they get your attention? Does it make you pick up a Dr Pepper when you are at the supermarket or convenience store, especially when Coke or Pepsi also also available for your purchase?

I think it does…with some caveats.  While the messaging is solid and connects with the viewer, it still has a strong chance to get lost among all the other commercials that are playing.  Not to mention that Coca-Cola and Pepsi have more money to spend on advertising;  the chances of you being bombarded with soda commercials are quite high and remembering Dr Pepper over a longer time period are quite low.

Dr Pepper’s series of commercial stands apart from how other soda companies have advertised their trademark beverages.  Coca-Cola talks about happiness when you drink their carbonated soft drinks (Open Happiness) and Pepsi advertises on living in the moment (Live For Now).  Dr Pepper turns the focus to you, on how you are special and different from everyone else out there.  In today’s society, everyone wants to be known for being themselves, so Dr Pepper has tapped into how individuals want to think which makes it easier for them to identify themselves with Dr Pepper.  In my opinion, this is a stronger message than being happy or living in the moment.

Still, it is a matter of whether this will translate to any form of wins for Dr Pepper.  Are consumers more likely to buy more Dr Pepper because of this commercial?  Will these purchases come at the expense of Coke, Pepsi, or some other non-Dr Pepper-owned beverage brand?  Keep in mind that Dr Pepper also has to compete with other beverage products, like Red Bull, Gatorade, Nestle Water and the like.  At the supermarket or convenience store’s point of purchase, some of these products will undoubtedly be on sale and make that decision to choose Dr Pepper even harder.  It may come down to whether you are willing to pay more to be unique.

So the next time you are purchasing a soft drink – any drink actually – will you choose Dr Pepper because it reminds you of your individuality?

Coke Follows Pepsi, Entering Mid-Calorie Soda Segment

With the recent success of Dr Pepper Ten and Pepsi Next, there’s been some renewed buzz in the carbonated soft drinks category recently.  Now Coca-Cola wants to get into the mid-calorie segment.  BevReview.com has a few links to other articles where sources have confirmed that Coca-Cola will be launching Sprite Select and Fanta Select in five U.S. test markets (link here).

As the linked article notes, both Coca-Cola and Pepsi have tried mid-calorie products before.  Both companies’ products failed to gain traction in the marketplace and were discreetly phased out from store shelves.  Given the technological advances and the successful-so-far products of Dr Pepper and Pepsi, is it time for Coca-Cola to come in with another mid-calorie product?  Will they succeed this time around?  And why try this with Sprite and Fanta, not with the trademark Coca-Cola product itself?

One issue would be to first determine what is “mid-calorie” and how this type of product is unique from the consumer’s perspective.  Arbitrarily, I’m defining this soda segment as with a limit of 70 calories per 12oz (355ml) serving, given Pepsi Next has 60 calories, and Sprite Select and Fanta Select will have 70 calories.  Dr Pepper Ten only has 10 calories per 12oz serving, so they fit the mold (Note: Dr Pepper Ten has 10 calories in both a 12oz serving, as well as 10 calories per 8oz serving, click through link to understand how).  Mid-calorie products are also categorized as those using natural sweeteners to bring the calorie count down below 70, featuring a combination of sugars, high fructose corn syrup, or some other form of sweetener in tandem with the natural sweeteners.  The purpose is to balance out the taste curve: from the moment the liquid hits the palette, all the way to the after taste.

Given that mid-calorie soft drinks like Coc-Cola C2 and Pepsi Edge of the early 2000s did not have the technology or cost-efficiencies before to insert natural sweeteners, they failed to catch on in the marketplace.  One decade later, the technology is in place , which makes it possible to give consumers a better-tasting (and better named) product.  The generally positive feedback toward Dr Pepper Ten and Pepsi Next would seem like an opportune time for Coca-Cola to enter the mid-calorie soft drink segment.  Similar to how Coca-Cola’s Dasani Drops may be entering the liquid flavor enhancers after Kraft’s MiO has tested the waters, Coca-Cola may have monitored the consumer reaction to mid-calorie products  (BevWire’s article on the Dasani Drops piece can be found here).  This lets Coca-Cola sit on the sideline to see what would happen without bearing the developmental costs until it’s been a proven success.

While it appears that these products have received positive reviews, it appears that Coca-Cola is still hesitant with this segment.  These reservations makes the pilot testing with Sprite and Fanta that much more important.  Coca-Cola would not want to put the trademark name on something that they don’t fully believe in, only to see it fail like last time.  A second failure with this segment would have implications such as losing brand equity or showing that the soft drink manufacturer does not understand its consumers.

A factor that would aid in their success, as well as supporting the successes of Dr Pepper Ten and Pepsi Next are consumer trends.  Consumer trends have shifted toward a stronger focus on health consciousness.  No longer are consumers willing to sacrifice calories for taste.  However, not all consumers are  prepared to sacrifice taste for zero calories either, which provides the opportunity for the Pepsi Next, Dr Pepper Ten, and the impending launches of Sprite Select and Fanta Select.

In this regard, there would appear to be a market for mid-calorie soft drinks, albeit a small market for now.  The consumer trends and the technological advances will help to make this a success this time around.   If history does end up repeating itself, it would certainly guarantee that Coca-Cola will not be testing any more mid-calorie soft drinks.

Second Dr Pepper Ten Commercial: Just As Manly

Dr Pepper has put out their second commercial and it’s just as male-focused as the first one.  Using other stereotypical testosterone-based examples, such as drill bits, desert target practices, and big TV screens, the commercial further enforces the point that it is a man’s drink.  The tagline remains the same, ending with “It’s Not For Women”.

As Dr Pepper spokepeople and industry insiders indicate that the low-calorie soft drink is a success at gaining new trial users at minimal cannibalization, Dr Pepper needs to remind consumers that it’s a better option than some of the more calorie-heavy drinks – it needs to increase its repeat consumption among men.  It’s main competition right now appears to be defending against the Pepsi Next launch, which was launched nationally in U.S. late last month.  At a point when awareness is high and feedback for Next isn’t completely positive, Dr Pepper inserts their low-calorie offering into Next trial users’ consideration set to let them know there is an alternative out there.  One that may taste similar on the taste curve (full flavor sweetness on the initial palette, followed up sour aftertaste from the aspartame sweetener).

On a pure business and marketing standpoint, it seems as if the launch of the second Dr Pepper 10 commercial came at the best time possible.  Not only because it seems to be a blocker/flanker-type to remind people that Dr Pepper’s low calorie offering is better than Pepsi Next, but also from an expansion and continuity perspective. While they may not reach the same levels of awareness and trials as their first commercial, the product is now available nationally and can translate sales in more U.S. markets (larger market size may equal lower awareness levels, but generate more sales dollars because of the sheer size).  For continuity, it also halos off their first commercial with the same shocking tagline of “It’s Not For Women”, so there will be some viewers that are reminded it is a male-specific soft drink like the first one.

One of the key sales barriers may be that the  grocery shopper of the household is still the mom or wife, not the men that the product is targeting.  It may ultimately serve a purpose similar to the H&M David Beckham 2012 SuperBowl commercial, which targets women to buy the undergarments for their men.  For the most part, the men might now take part in putting the product on the weekly grocery list, or are moved to purchase the product themselves when they make the rare supermarket trip (although not that rare anymore according to Ad Age – article link here).

So why hasn’t Canada received the Dr Pepper 10 yet?  The Canadian market still only has Pepsi Max and Coke Zero competing in the zero-low calorie soda space.  One would suggest that given the healthier trends penetrating the Canadian market and our affinity toward lower calorie alternatives, that Dr Pepper should launch Dr Pepper 10 in Canada.  Alas, the situation is not that simple because Dr Pepper does not have it’s own distribution network here in Canada.  As per their distribution agreement with Coca-Cola and Pepsi, Dr Pepper Snapple Group’s various liquid refreshments come off of both manufacturer’s delivery trucks in Canada.  That said, Dr Pepper 10 may have a good chance to make it on the delivery trucks once the distribution contracts are up for renegotiation, or they find a tertiary distribution network if the contracts permit that.

Until then, Canadians looking to try Dr Pepper 10 will likely have to look toward grocery stores that bring their product in from south of the border, or make the trip down south themselves to find the product.

Coming Soon – Five More 10-Cal Soft Drinks From Dr Pepper

Some months back I wrote about how Dr Pepper was releasing a 10 calorie version of their popular soft drink in select markets, trying to create their own niche market by targeting men specifically (link here).  It looks like the launch was successful, as they are now planning on expanding their 10 calorie portfolio to include five other beverages: A&W, Canada Dry, Sunkist, 7up, and RC Cola.

Larry Young, the beverage manufacturer’s chief executive was quoted,

Chief Executive Larry Young who said, “Now they [consumers] can come back, drink our ‘Ten’ products and enjoy the full flavor of our brands and not worry about the caloric intake. You have to keep the doctor happy.

While Dr Pepper 10 successfully targeted men and gained significant media exposure with their recent campaign, will these five other sodas have the same positioning?  Should the 7up 10 calorie offering or the A&W 10 calorie offering target men specifically?  Or would the company exclusively target women with these 10 calorie products?  Dr Pepper came under fire for making fun of female consumers when they released Dr Pepper 10 nationally, so having history repeat itself in such a short time – even all in over-the-top good humor – may not be a good idea.  However, the free media and the conversation starter of whether the drink was for men only cannot be under estimated.  At the very least, Dr Pepper 10 may have gained trial when shoppers bought the beverage to see if it was really anything special, so it can be considered successful in that regard.  If given the chance to repeat the same marketing strategy, Dr Pepper may have chosen differently so female consumers are not alienated.

That said, it’s also unlikely that the company will be targeting men specifically for the five other 10 calorie beverages.  The more 10 calorie offerings that are specifically targeted at men, the more probable that Dr Pepper earns a reputation as a men’s only beverage organization and cutting off the company from half of the potential customers.  Something else to keep in mind would be that females are the shoppers for the family unit and if the beverages does not appeal to the female shopper, the end consumer (the husband or son) will likely be drinking something else that she approves of, and the 10 calorie beverage will remain on store shelves.   So while the research indicates that men do not want to be associated with the word “diet”,  keying in on males when females are the main shoppers are not likely to help them move product unless the shopping list has “Dr Pepper 10″ written on it.

How should Dr Pepper target and position these upcoming products?  Is there a specific age group or ethnographic that they should go after?  Or should it be aimed toward the general calorie-conscious consumer, regardless of age, gender, or ethnicity?  Since Dr Pepper’s initial advertising platform for the Dr Pepper 10 raised the profile for their 10 calorie offerings, there is no need to continue on this line of positioning if it alienates shoppers from them.  Their upcoming focus should be on the product’s benefits.  The 10 calorie sodas should focus on the sweeteners that give them the 10 calories and the closest taste profile to the full calorie versions.

Since the news of the line-up expansion broke not too long ago, Dr Pepper may be in the infancy stages of releasing these other products.  Let’s hope that they gain media exposure for the right reasons this time.

Jones Soda 16oz Cans: Good Idea or Bad Idea?

Jones Soda announced recently that they will be releasing their popular premium soda in 16oz (473ml) cans into the convenience channel.  The can packaging will follow closely with their Jones Soda glass bottles: photos submitted by consumers enclosed in a black and white box.  The 16oz cans will be available in three flavors by late October or early November: Green Apple, Berry Lemonade, and Strawberry Lime.  This product launch is unique for Jones and the overall soda category as most products are of the traditional 12oz (355ml) can variety.  Will other CSDs follow and release products en masse in this packaging size if Jones is successful?  Or will this package size fall short of sales targets that suggest it can be a permanently stocked product?

On one hand, this launch makes sense because Jones Soda is seeking out growth opportunities.  Since canned soft drinks are the preferred choice in the convenience channel and the company only produces bottles, Jones Soda would have to come up with a can version of their products in order to penetrate this channel.  However, their category position as a premium soda company somewhat dictates that they must sell their product in glass bottles.  Consumers have the notion that glass bottles preserve the taste and quality better.  If the manufacturer switches from glass bottles to aluminum cans, this is somewhat interpreted as “selling out” by sacrificing quality.  Sales have slowed down for companies that make that switch – just look at Nestea, Sobe and Lipton (among many other examples).

Adding another layer of curiosity is the can size itself.  Their choice of an unconventional size will generate attention and provide a stronger bang-for-the-buck (cost/value) relationship for the consumer.  But some other things to consider include calories and convenience store shelving capabilities.  Consumers are extremely calorie-conscious and often make the effort to read the label and portion control their servings, so when the 16oz can contains 30% more calories than a regular 12oz soft drink, they may be afraid to purchase a product of this size.  Also, most 16oz beverages are energy drinks so an uneducated shopper may confuse the product as an energy drink and not a soft drink. With retail shelf space, most convenience stores with refrigerated vaults  work with a set planogram that limits the space they have to put products – there are size limitations since a taller can will not fit into a pre-set shelf, and if the width is larger than a regular can the manufacturer must provide special racking.  The retailer may ultimately choose to sell the product warm since it cannot fit into their shelving units.

Jones Soda may believe there is a trend of consumer fragmentation, and as a result expand their offerings through package sizes.  Coca-Cola did recently released a new 12.5oz bottle as a result of product-price diversification to appeal to more consumers, so there may be some truth in that.  However, Pepsi had also recently launched their 12oz soft drinks in 16oz sizes as well (Pepsi-Cola, Diet Pepsi, and Dr Pepper were available, to the best of my knowledge) but they did not remain on shelves for long given their popularity.

If Jones Soda is ultimately successful in making this work, the other manufacturers will undoubtedly follow.  However, with the consumption patterns of consumers moving toward healthier alternatives, and limiting calories through portion-controlled serving sizes, these 16oz cans will face  a tough uphill battle.  Let’s just hope it does not follow in the footsteps of Sobe, or Nestea.