Yoohoo Brand Repositioning 1 Group 3 Lecture 2

Yoo-hoo Brand Repositioning (1) Group 3 Lecture 2 Discussion 318 Amanda Percarpio, Lauren Ross, Olivia Kossel, Alanna Price, Tze Ching Ooi

Yoo-hoo Brand History (2) (3) (4)

(6) Target (9) (7) (10) (8) (5)

Target Perception and Benefits (14) (11) vs. (12) (13) (31) (15)

Positioning Statement “To parents and caretakers of active children, Yoo-hoo is the one sports drink that can maintain its freshness throughout the day while replenishing energy with natural sugars and providing whey protein from wholesome dairy products, making it the best alternative to milk and fruity beverages. ”

Positioning Map (16) Health Conscious (17) New Yoohoo Muscle Milk Children Adults Old Yoohoo Nesquik Sweet tooth

Shelf Spot Current (19) Individual bottles (refrigerated) (20) (18) Bulk packaging (unrefrigerated)

Video: https: //www. youtube. com/watch? v=y 7 b. J 8 Oj. A 9 n. M

Selling Our Strategy (the 4 P’s) Before After Why/Why Not Target Children Parents ages 28 -34 with children ages 6 -17 - Brand equity as a children’s drink -Nutritious for children -Parents are doing the purchasing -Calling upon nostalgia Product Chocolate Drink Chocolate Sports Drink - Sports success in past -Healthconscious /LOHAS -Chocolate milky drinks generally accepted as sports drinks -Whey protein - Water & sugar ingredients similar to competing sports drinks Price 10 pack 6. 5 fluid oz. at Walmart: $2. 98 Slightly raised In Bulk: $3. 98 Individual 15. 5 fluid oz. $2. 39 Individual: $3. 49 -Cheap products infer lower quality -Hoping to increase perception of quality ingredients -Will help to cover costs of more expensive bottle/ packaging -Still affordable for large household sizes (kids are expensive)

Selling Our Strategy (the 4 P’s) Place Promotion Before After Why/Why Not Grocery stores, unrefrigerated, bulk section, shelved next to various juice drinks Grocery stores, refrigerated section and bulk section shelved next to sports drinks -Juices in box are snack-type drinks; nutritional benefits not taken seriously. -Sports drinks seen as a replenishing product for during or post workouts. -Added option of refrigeration allows a choice for cold refreshment drink. - Partnership with Yogi Berra Gave out toys with their products Campaign to show the different ways to use the product (candy bars, ice cream, etc. ) (32) Current - “Teens on Camera Drinking Yoohoo” ? (21) - Partnership with Little League Code on the bottles that are used to accumulate points. Points are then redeemed for sporting goods. It no longer makes sense to have a professional athlete endorsing the product, because we are targeting young children in sports. A partnership with Little League would seem more relatable for the intended target. By putting codes on the bottle, it incentivizes repeat purchases.

Why Our Strategy Will Work

Appendix Picture 1: http: //www. yoo-hoo. com/images/products/yoo-hoo_chocolate_12 oz-bottle_l. png Picture 2: http: //www. pophistorydig. com/topics/tag/yoo-hoo-advertising/ Picture 3: http: //www. paragonauctions. com/1950_s_yoo_hoo_sealed_bottle__drink_of_champions__-lot 5848. aspx Picture 4: http: //www. yoo-hoo. com/images/quick-sips/tetrafamily. png Picture 5: http: //15858 -presscdn-0 -65. pagely. netdna-cdn. com/wp-content/uploads/2016/06/water-fight-442257_1920. jpg Picture 6: http: //i. huffpost. com/gen/1960712/images/o-KIDS-SPORTS-PARENTS-facebook. jpg Picture 7: https: //goodmenproject. com/wp-content/uploads/2014/10/Coaching-is-Great. jpg Picture 8: http: //www. wakeupnaturally. com/images/cache_0/cache_1/cache_6/Life-Coaching-Kids-Parents 7 e 108610. jpeg? ver=1472004767&aspectratio=2. 3255813953488 Picture 9: https: //cdn. psychologytoday. com/sites/default/files/blogs/131242/2013/09/134069 -133817. jpg Picture 10: http: //www. centives. net/S/wp-content/uploads/2015/01/011815_1119_Parents. Are. S 1. jpg Picture 11: https: //cdn. meme. am/instances/36356119. jpg Picture 12: http: //www. sogoodblog. com/wp-content/uploads/2008/12/yoohoo. jpg Picture 13: http: //www. dpsgproductfacts. com/product_images/YOOHOO_CHOCOLATE_DRINK_CANBOTTLE_11. png? v=1338927329 Picture 14: http: //www. sportspickle. com/wp-content/uploads/2012/03/b 4 bc 89 b 51 b 75685 e 03 f 3 b 0 e 86 e 81 dad 3. jpg Picture 15: https: //s-media-cache-ak 0. pinimg. com/564 x/02/ee/95/02 ee 95675 e 5085 f 63 e 691 a 2 d 75 a 069 b 0. jpg Picture 16: http: //vignette 3. wikia. nocookie. net/disney/images/d/dd/Nesquik_Logo. jpg/revision/latest? cb=20140517065016 Picture 17: http: //www. gnc. com/graphics/product_images/p. GNC 1 -23091889 dt. jpg Picture 18 Photograph by Lauren Ross Picture 19 http: //tinypic. com/view. php? pic=2 v 3 lzdw&s=6#. WD 8 Gs. Xe. ZMd. U Picture 20 http: //c 8. alamy. com/comp/EF 1604/florida-orlando-publix-grocery-store-supermarket-food-sale-display-EF 1604. jpg

Appendix (21) Brand History: http: //www. yoo-hoo. com/ (22) 2000’s Advertising Campaign: Using Qualitative Research in Advertising Strategies, Techniques, and Applications https: //books. google. com/books? id=5 Duxh 0 Rtu. YMC&pg=PA 15&lpg=PA 15&dq=yoohoo+chocolate+drink+perceptions&source=bl&ots=C 3 Yl. Sz. Oog_&sig=wkb. Iz. Ski. I e 9 i 04 O 2 XJMCza. Z 9 e 6 E&hl=en&sa=X&ved=0 ah. UKEwi 15 ur 69 c 7 QAh. Ur 1 o. MKHRh. SCa 8 Q 6 AEINz. AE#v=onepage&q=yoohoo%20 chocolate%20 drink%20&f=false (23) Mintel Beverage Packaging Report: http: //academic. mintel. com. ezproxy. library. wisc. edu/display/747792/# (24) Census Data: http: //www. census. gov/hhes/families/data/cps 2015 F. html (25) Income Distribution: https: //www. aei. org/publication/census-data-on-income-distribution-reveal-evidence-of-rising-income-levels-for-arising-share-of-american-households/ (26) Perception Graph: https: //www. scribd. com/document/136846253/Yoo-hoo-Brand-book (27) IBIS World Industry Report 0 D 4642 Coca & Drinking Chocolate Production in the US: http: //clients 1. ibisworld. com. ezproxy. library. wisc. edu/reports/us/industry/default. aspx? entid=4642 (28) IBISWorld Industry Report OD 6010 Health Food & Supplement Store Franchises in the US: http: //clients 1. ibisworld. com. ezproxy. library. wisc. edu/reports/us/industry/default. aspx? entid=490 (29) Muscle Milk vs. Yoo-hoo Graph http: //www. bicycle. net/2010/yoo-hoo-the-best-sports-drink-you-never-thought-of (30) Consumer Confusion with Yoo-hoo http: //www. fooducate. com/app#!page=post&id=57 A 32 A 6 F-6 DB 4 -57 E 8 -4603 -93 A 99 AB 1 E 1 BF (31) Picture 31 http: //www. momsteam. com/health-safety/do-youth-athletes-tolerate-sports-drinks-less-well-than-adults (32) Introduction of other Yoohoo Products http: //www. yoo-hoo. com (33) Positioning map explanation https: //www. muscleprodigy. com/muscle-milk-good-bad/ (34) Colors and appetite stimulation http: //www. fitday. com/fitness-articles/nutrition/how-color-can-change-your-appetite-and-eating-habits. html

Appendix - History Timeline : • Created by Natalie Olivieri in the 1920’s as a chocolate flavor to his fruit juice he sold in NJ. • Unique in that it always stayed fresh if container was sealed • Alternative to chocolate milk that spoiled. • • In the 50’s and 60’s Yoo-hoo had its most successful advertising campaign of all time. Partnered with baseball legend Yogi Berra and the New York Yankees Advertised as “the drink of champions, ” “chocolate energy drink, ” and refreshing Shortly became one of the leading soft drinks • In the 80’s the strawberry flavor was introduced. • In 2000’s Yoo-hoo ice pops introduced to market (21) • Also in 2000’s, Maddogs and Englishmen Agency turned the Yoo-hoo brand around by researching webpages created by teenage boys that glorified Yoo-hoo (22) • Strategy: “Unlike other drinks, Yoo-hoo makes a bad situation better” • Showed teens in everyday situations, where purchasing Yoo-hoo made their days better, while not purchasing made things worse. • “Yoo-hoo chocolate drink. Buy any other drink and you could be making a terrible mistake. ” • Sales decline reversed and distribution increased • Successful in that it actually listened to consumers

Slide 1 - Brand Equity: • We want to salvage the athletic, sports association with Yoo-hoo because of its highly successful advertising campaign in the ‘ 50 s and ‘ 60 s. However, instead of advertising it as a “soft-drink” or a “chocolate drink, ” we plan on advertising it as a sports drink because of health conscious LOHAS that are now very prevalent within our society. The first two ingredients in Yoo-hoo are water and sugar, similar to other sports drinks brands. This makes Yoo-hoo a potential competitor for this market. We also want to advertise it as a sports drink because of consumer skepticism over what the drink actually is; many consumers are uneasy to buy Yoo-hoo because of its ambiguous advertisement as a “chocolate drink” (30). • An ingredient that we plan on embracing is the Whey Protein. Our new slogan will be “When there’s a will, there’s a Whey. ” This demonstrates to consumers the reason why Yoo-hoo is a beneficial sports drink. According to Mintel’s Beverage Packaging Report of 2016, recognizable ingredients prompt consumers to buy that product. Advertising the whey protein will therefore be an important factor into future purchases. • Because of Yoo-hoo’s high artificial sugar content (high fructose corn syrup), we plan on using a more natural sweetener, and advertising this “real sugar” component. Consumers are now more concerned with health than ever before, and this low sugar content will therefore signify healthiness to consumers (23). • The last thing that we plan on discarding is the original bottle/ packaging. We want to get completely rid of the brown drips that outline the bottle because of the unappetizing and dirty look. For the packaging colors, we are using red and yellow, because these colors are known to stimulate appetite. (34) We also want to get rid of the opaque soda cans and juice boxes, because it implies cheap quality and it adds to the ambiguity of Yoo-hoo. Instead, we plan on revamping the packaging and transforming it into a clear, gripped, sports drink bottle. The Beverage Packaging Report stated that clear bottles signify higher quality and freshness, and this is exactly how we want to reposition Yoo-hoo.

Yoo-hoo Target Slide 2 Who are they? - Parents with physically active children ages 6 -17. These parents are around age 28 -34 and have a college degree, a large household size, they are employed full-time, and they have an annual income of $75 k or more. Where are they located? - According to an IBIS World Industry Report on Cocoa and Drinking Chocolate Production in the US, the Mid-Atlantic Region, which includes states like New York and Pennsylvania, has the most densely concentrated drinking chocolate industry. These states contain a significant share of the US Population, which therefore makes it the ultimate market for Yoo-hoo. Because children are generally more physically active in a suburban population, we are specifically focusing on this segment of people. Characteristics / Concerns? - Since the responsibility of buying groceries is shifting, the parent can be a mother or father. However, fathers are more likely to buy sport drinks than mothers, with an interest in sports and building strength. Moms, on the other hand, want easy ways to provide kids with nutritional foods and drinks they will actually enjoy. These parents are close to the age of the millennial generation, and are therefore increasingly concerned with health and wellness. They are therefore likely to purchase products with the nutrition information clearly displayed on the packaging, as well as likely to purchase products with non. GMO ingredients (Mintel Beverage Packaging Report). Target Behaviour: These adults seek convenience when dealing with active children. They are health conscious about nutrients and energy replenishment, price sensitive, and will buy in greater quantity, according to the Mintel Beverage Packaging Report Target Estimate: The 2015 US Census Data for married people with a Bachelor’s Degree and children ages 6 -17 is 12, 779, 000, given the specifications of income, location and lifestyle, we would estimate our target to be around 500, 000.

Slide 3 (26) Target Perception: People view Yoo-hoo as a cheap alternative to chocolate milk. It is perceived as low quality and as a children’s drink. There is also a great deal of consumer skepticism over what the product actually is, and therefore many people question, “What even is it? ” when seeing Yoo-hoo (30). In the early 2000’s, Yoo-hoo struggled with the reputation of being “old-fashioned” and “childish, ” and many teenagers did not find it desirable to buy (22). While Mad Dog’s and Englishman’s advertising agency helped make the brand become more successful, Yoohoo has once again developed this reputation. However, 30% of parents said that they would occasionally buy Yoo-hoo, depending on the circumstance (26). This gives us motivation to improve the product, so that more parents will respond with, “Yes, all the time, ” when questioned if they would buy Yoo-hoo for their children. Target Benefit: Yoo-hoo is a tasty sports drink that replenishes post activity nutrients such as carbohydrates and protein. It is the perfect drink to bring from one activity to the next because of its longevity. It does not contain milk, so it therefore does not require refrigeration, and it stays fresh as long as it is sealed. It is therefore easy to bring along in cars, buses, or coolers, which is especially convenient for active children involved in sports. It also contains real sugar, whey, calcium, and other vitamins that keep active kids healthy. It is a classic American brand that has a nostalgic connection for many parents.

Slide 4 Positioning Statement (USP Explanation): Yoohoo is not made with actual milk but instead consists of whey from dairy, which allows it to be stored unrefrigerated. It is plentiful in nutrients such as vitamins, calcium and protein, which are essential for physical activities. These nutrients both restore energy and build strong muscles for young children. Parents, teachers, and caregivers of all kinds can have this readily available for busy, activity-filled days with kids. Slide 5 Positioning Map: The two individual competitors for Yoo-hoo are Nesquik and Muscle Milk. According to the IBIS World Industry Report on Cocoa and Chocolate Drinking Production in the US, Nestle is one of the major companies within this industry. However, the report stated that despite prevalence and popularity, Nestle has a weak reputation in the health market. Even after attempts to offer products in an unsweetened form, Nestle has still not appealed to the growing healthy target markets. However, because of its strong brand reputation and awareness, many consumers continue to buy Nestle. Muscle Milk is catered to more health conscious consumers. According to data from Packaged Facts, non. GMO products are expected to make up 30. 0% of total food and beverage sales by 2017, which demonstrates the opportunity for industries to cater to the growing segment of health conscious consumers. Because of this growing consumer base, there has also been an increase in taking vitamins and minerals that improve health or prevent nutrient deficiencies that can occur when diet alone does not provide all necessary vitamins and minerals For example, if an industry operator is targeting athletes, then it typically offers various food items with large amounts of protein. Muscle Milk contains 25 grams of protein, so it therefore is targeted towards this consumer base. Muscle Milk is a great drink for older athletes. (29)

Positioning Map Continued As demonstrated on the positioning map, Yoo-hoo was originally located way too close to popular Nesquik, making it difficult to maintain a large target market. According to the IBS World Industry Report on Cocoa and Drinking Chocolate, there is a growing trend for drinking chocolate producers to develop products with lower sugar and fat content, because of the rising health market population. This is therefore an opportunity for Yoo-hoo to target health-conscious consumers with its lower sugar content compared to Nesquik. Yoo-hoo’s first ingredient is water, and it is therefore an extremely replenishing sports drink. It is a healthy alternative to Nesquik’s chocolate milk, and a major advantage is that it will not give consumers an upset stomach that often results from consuming dairy. While Muscle Milk contains 25 grams of protein, Yoo-hoo contains only 2 grams, which therefore makes it better for child athletes. Some of Muscle Milk’s questionable ingredients, such as glycocyamine and homocysteine, also make it unfit for children (33). According to consumers, it also has a much better taste than Muscle Milk, which makes it even more desirable for children. Slide 6 Shelf Spot: Yoo-hoo is currently sold in the un-refrigerated section alongside fruity beverages. Because consumers often think of it as an alternative to dairy products, this shelf spot may give them uneasiness. Refrigerated drinks imply freshness and higher quality, so we therefore want to move individually bottled Yoo-hoo products to the refrigerated section, next to competitors such as Muscle Milk. We will put the bulk packaging Yoo-hoo products in the un-refrigerated section near other sports drinks such as Gatorade. This will imply that Yoo-hoo is simply a chocolate sports drink, not a juice or dairy product. It will also give consumers the added convenience and value of purchasing in bulk.

Creative Brief Perception: • • • Perceived as a cheap alternative to chocolate milk What even is it? – consumer skepticism “Old-fashioned” Consumers either know of it and forgot about it, or genuinely have no idea what the product is Low quality Children’s drink Target Audience: Younger parents with physically active children, looking for nutritious, health-conscious brands. Objective: The goal is to overcome the negative perceptions of Yoo-hoo’s quality as a result of the poor execution of advertising and packaging. Instead of consumers viewing Yoo-hoo as an alternative to chocolate milk, we want them to see the product as a sports drink, with an emphasis on replenishing carbohydrates and protein, based on the whey protein component of the drink. Our goal is to make the target believe that Yoohoo is not chocolate milk--it is a chocolate flavored sports drink, that contains some of the same benefits as milk, but also additional benefits, such as added nutrients, and no risk of an upset stomach. Benefit: We want Yoo-hoo to be seen as a healthy sports drink for parents to buy for their young and active children. Not only is Yoohoo replenishing because of its high water content, but it also contains essential nutrients such as carbohydrates and whey protein. The drink stays fresh as long as it is sealed, making it the perfect drink to bring on-the-go to sports games and activities. It is easily transportable but still provides children with their chocolate fix. Support: Yoo-hoo does not contain milk and therefore does not require refrigeration. There is no necessary drink preparation or cooling requirements. It has whey, calcium, and other vitamins that keep kids active longer and healthy after rigorous activity.

Slide 9 - 10 Why Our Strategy will Work (the 4 P’s) Target Why/Why Not: We feel that changing the drink entirely from a children’s drink to another age group would be too drastic of a change from our brand equity. The nutrients in Yoo-hoo are perfectly sufficient to replenish the bodies of active children. We are more specifically targeting parents because they are doing the purchasing for groceries and are more concerned with health and wellness. They also might want to share their childhood memories of Yoo-hoo with their children. Product Why/Why Not: Changed to sports drink because it was successful for Yoo-hoo in the past and there is currently a large desire for living a healthy lifestyle. Kept idea of “Chocolate Drink” because chocolate milk-type drinks are generally accepted by health conscious people as muscle and energy replenishing. Yoo-hoo is not actual milk but contains whey, which is used in many sports drinks and supplements. Price Why/Why Not: The lower price of Yoo-hoo is nice for families with larger households, who have shown to purchase a larger amount of sports drinks because they are buying for more people. At the same time, we would like to portray our product as having a higher quality ingredients. It is also unrealistic to price a large bottle at the same price as a very small box container, so naturally this would lead to a price increase proportional to the increase in quantity. Place Why/Why Not: When it was next to juices customers view it as a snack-type drink and don’t take its nutritional benefits seriously. Moving it next to sports drinks allows consumers to see the brand as a replenishing product for post-workouts. Adding the option of a refrigerated Yoohoo allows customers to have the convenience of a drink that doesn’t easily perish as well as the refreshment of a cool drink. Unrefrigerated milk-like products may make some people uneasy but may add convenience to another parent’s life.

Promotion Why/Why Not: The connection to professional athletes in promotion, such as Yogi Berra, has not been used for an extended period of time and does not coincide with the promotion of Yoo-hoo for young children playing recreational sports. We will instead be partnering with Little League baseball so that children can share the drink together in an environment of athletics and camaraderie. Young children will also convince their parents to buy more out of the product when they know they are going to get something additional out of it. This makes the codes on the bottle an incentive to both buy more and continue being active. Slide 11: (In Conclusion, Why our Strategy will Work) Our strategy will work because we are appealing to younger parents who are interested in the health and wellness of their active children (LOHAS lifestyle). Since they are the ultimate decision-makers in the purchase of products for their children , it is important to appeal to them. Yoo-hoo is a brand that parents are familiar with, and they will therefore have a nostalgic connection to the brand. However, Yoo-hoo will now be perceived as a higher quality, healthier product. Yoo-hoo is a sweet chocolate drink that not only replenishes children with its high water content, but it also provides children with whey protein, carbohydrates, and other essential nutrients. It stays fresh as long as it is sealed, so it is therefore easily transportable and a great drink to bring along on busy days. This is inline with the lifestyle of our target market, who have children with various sports and activities throughout the day. People now also have the choice to buy it in either the refrigerated section or the bulk section, which gives consumers the option to either enjoy immediately or conveniently bring on-the-go. While we have increased the price by a little bit to imply higher quality, we have still maintained an affordable price to appeal to families with larger households. Our promotion will be a partnership with Little League, and consumers can gain points by scanning codes on the Yoo-hoo bottles. These points can then be redeemed for sporting goods. This promotion will be a great way to attract kids and encourage their parents to become repeat purchasers. Combining each strategy of Product, Price, Place, and Promotion, we will have great success in appealing to our target market.