Superbrands 2004 - Brand Autopsy

BEVERAGES
from a holiday promotion with Universal’s Cat in the Hat.
Poor 7 Up—sales have been abysmal since the brand was booted
out of the Pepsi bottling system in favor of Mist last January. Mist’s
volume was up 88%, while 7 Up was down 27.6%. Sprite still leads
the category with a 5.9 share despite a 5% dip in volume. New 7
Up ads are due this year, possibly from a new agency. The changes
are not just due to waning sales but also a sweeping management
shift by parent Cadbury Schweppes, which appointed new overseers
at Dr Pepper/Seven Up, Snapple Beverage Group and Mott’s.
New CEO Gilbert Cassagne named former Yum! Brands exec
Randy Gier as evp-marketing. Gier wasted no time making his presence
known, unexpectedly dismissing seven-year Snapple agency
Deutsch in favor of Cliff Freeman and Partners, both New
York. 7 Up’s ad account is now up for grabs with longtime
agency Young & Rubicam still in the mix. Current tag:
“Make 7 Up Yours.”
On the management front, Coca-Cola joined Cadbury
in the “sweeping” changes department. Coke,
which has suffered a leadership vacuum in the post-
Roberto Goizueta era, made a big production out of
its search of outside candidates to replace departing
chairman/CEO Douglas Daft—only to select retired executive
E. Neville Isdell. President/COO Steve Heyer, who
was passed over for the post, will now exit. Donald
Keough, whom many consider the driving force behind
Coke’s moves, returned to its board of directors this year.
Oddly enough, Coke’s “Real” effort, via Berlin
Cameron/Red Cell, New York, is its first well-received
marketing campaign in recent history. “Real” appears
to have found the staying power that several failed
Coke campaigns lacked. The brand also scored big
by aligning itself with the pop culture phenomenon, American
Idol. For the key selling season, Coke has launched an “Unexpected
Summer” promotion which uses GPS technology to select
prizewinners for booty that includes a Chevy Equinox and Disney
vacations.
Not to be outdone by its embattled rival, Pepsi uncapped a
new ad strategy last November that stresses how its cola goes
well with food. The “Pepsi. It’s the cola” ads from BBDO, New
York, have featured a mix of characters from comedian Dave
Chappelle to kids dressed in life-size hot dog outfits. New ads
are on the way starring super group Destiny’s Child.
On the entertainment front, Pepsi is reprising two successful
BRAND
COMPANY NAME,
LOCATION
Mid-cal mania: Pepsi
Edge takes on Coke’s
C2 this summer.
LEAD AGENCY,
LOCATION
summer programs: Pepsi Smash, a live music show à la
American Bandstand, is airing on the WB while Pepsi Play for a
Billion 2 will air on ABC. The company will tie in with the Warner
Bros. holiday film Polar Express. In a high-profile promotion
that had its share of code-sharing bumps, Pepsi linked with Apple
iTunes to give away free music downloads; it also renewed a
deal with the National Football League through 2011.
Pepsi’s second biggest trademark, Mountain Dew, is immersed
in a six-month continuity program called Dew U that targets
the college set with ads starring NBA Orlando Magic star Tracy
McGrady. In April, Dew revisited its orange LiveWire extension,
which got $59 million in media last year, and created a show
called MDN—the Mountain Dew Network for Spike TV.
PepsiCo remains the non-carb champ with its
Gatorade, SoBe and Starbucks brands owning 45.6%
of the segment (water was not included) compared
with Coke’s 28.4 share.
Gatorade has refurbished packaging
with silver labels and caps as part of a
summer tie-in with ESPN’s 25th anniversary
and has tapped the NFL’s Kansas City
Chiefs Dante Hall to help launch its X-Factor
line (as in unexpected flavor) this year.
Sales of Gatorade’s Propel fitness water hit
$200 million last year and were further aided by a $35
million-plus national campaign, via Element 79, Chica-
go, that has brought its “Drip” characters to outdoor settings.
Water leaders Aquafina from Pepsi and Coke’s Dasani
are still posting double-digit volume growth of 20.8%
and 21.9%, respectively. Still, both are embroiled in a
costly price war. To fortify Aquafina, Pepsi is readying ads from new
agency BBDO, New York, and is testing H2OH, a value-priced
entry, for a likely two-pronged attack. Dasani, meanwhile, is bringing
back its “Can’t live without it” ads from Berlin. Coke also grew
its Dannon water brand volume 103%, but could do little to help
Evian, which fell another 20%, giving it a meager 1.8% share.
In the tea segment, AriZona is on its way to passing Snapple for
the No. 2 slot. Category leader Lipton Brisk ties in with MTV for a
summer “Live the Life” promo dangling a Caddy Escalades, XM
Satellite radios and other prizes. Snapple, which nailed a five-year,
$166 million deal to sell juices, water and teas to New York City,
launched a final round of its quirky “Bottles Personified” ads. B
TOTAL
SALES
(millions)
Superbrands
MEDIA
EXPENDITURES
(millions)
QUALITY
FAMILIARITY
PURCHASE
INTENT
NEW AGE/SPORTS/WATER
1. Gatorade PepsiCo, Purchase, NY Element 79, Chicago $2,216.0 $114.3 6.85 89% 7.22 60.1
2. Aquafina PepsiCo, Purchase, NY BBDO, NY 936.0 24.4 6.73 73% 7.25 58.2
3. Dasani Coca-Cola, Atlanta Berlin Cameron/Red Cell, NY 834.0 18.7 6.68 74% 7.35 58.6
4. Lipton PepsiCo, Purchase, NY J. Walter Thompson, NY 681.6 N/A 7.12 92% 8.00 65.8
5. Snapple Cadbury Schweppes, London Cliff Freeman and Partners, NY 487.6 9.3 6.72 81% 7.34 58.8
6. Minute Maid Coca-Cola, Atlanta Doner, Southfield, MI 479.4 12.7 7.10 88% 8.00 69.0
7. Powerade Coca-Cola, Atlanta Weiden + Kennedy, Portland, OR 380.3 9.5 6.49 61% 6.70 52.4
8. Poland Spring Nestlé Waters, Greenwich, CT McCann-Erickson, NY 375.9 3.4 6.80 41% 7.53 61.2
9. AriZona Ferolito, Vultaggio, NY In-house 333.4 N/A 6.58 52% 6.95 54.1
10. Nestea Coca-Cola, Atlanta Berlin Cameron/Red Cell, NY 310.3 10.2 6.72 85% 7.27 58.4
EQUITY
Sources: Beverage Marketing Corp. (sales); TNS/CMR (media); Harris Interactive/EquiTrend: QxFxPI=E (see key, page S18)
www.brandweek.com JUNE 21, 2004 S31