Continuous Assessment Assignment Digital Business MT55124 12/12/11 Geraldine Lavin

Mark Greene James Dellinger

Omar Fachar Ran Zhang Declaration

We the undersigned declare that the project material, which we now submit, is our own work. Any assistance received by way of borrowing from the work of others has been cited and acknowledged within the work. We make this declaration in the knowledge that a breach of the rules pertaining to project submission may carry serious consequences. We are aware that the project will not be accepted unless this form has been handed in along with the project.

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Table of Contents
Part A ......................................................................................................................................... 2 Intro ........................................................................................................................................ 2 North America ....................................................................................................................... 3 Asia ........................................................................................................................................ 3 Overview of the different business operations: ................................................................. 4 Sales model: Europes B2C Model- Community Provider ................................................... 4 Europe .................................................................................................................................... 6 Orangina, the sparkling fruit drink leader .......................................................................... 7 Part B ....................................................................................................................................... 11 Company description ........................................................................................................... 11 Weaknesses .......................................................................................................................... 11 Apply Schweppess digital marketing strategy to Sportslink .............................................. 12 Recommendations based on learning from Schweppes: .......................................................... 12 To increase visibility: ........................................................................................................... 12 Conclusion ............................................................................................................................... 13 Appendices:.............................................................................................................................. 15 References: ............................................................................................................................... 16

Word Count: 2634

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Schweppes- Inviting you to become part of their history

Part A
Intro
Although Orangina-Schweppes products are nowadays sold all around the world, the group's main business and activities are still done in Europe. Orangina-Schweppes is the leader of the still fruit drinks market in Western Europe, and the 2nd player in the non-cola sparkling soft drinks market [1]. Between all the subsidiaries of the Orangina-Schweppes group, the French division is one of the most important since it represents with the Spanish one 75% [1] of the activities of the group. It is also the most interesting one in terms of digital business strategy.

Did you know for instance that Schweppes, existing since 1783, is the oldest soft drink in the world? And that it became the official drink of the Royal Court of England by appointment of Queen Victoria in 1836? Or that 500 million consumers drink Orangina in 60 different countries? (http://www.oranginaschweppes.com/)

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The three regions we are explaining are North America, Asia and finally Continental Europe

mainly focusing on France and Spain.

North America
The Dr.PepperSnapple group (DPS) owns the rights to Schweppes in the United States and Canada thanks to its 2008 spin out from Cadbury Schweppes Americas Beverages. DPS has a market cap of roughly $8.11 billion and is the third largest drink business player in North America. Schweppes availability and distribution is fairly strong and can be found at most grocery stores and is quite popular at health food stores and among the urban American, Whole Foods consumer crowd and from personal experience in the Washington, DC market. Orangina has some brand identification issues in North America (outside of Quebec given its strong cultural affiliations with all things French.)

Given the rise of Hansens Naturals juice beverages in North America over the past decade there seems to be room for DPS to make a much stronger pitch to the American market in particular. So the new French B2C E-Business model can be implemented to capitalise of this. But currently Schweppes branded products are considered premium bar mixers in the United States based upon the activities and recipes suggested at

http://www.schweppesusa.com/ and operate under a strict B2B Business model of selling to businesses e.g. pubs and restaurants and an E-Business Strategy of an information website .

Asia
India, South Korea, Malaysia, Thailand, and Vietnam are the primary emerging markets for this brand although Orangina has already become available. The ownership of the brand and its marketing is different given the way the Cadbury divested of their beverage business to a variety of buyers. They use a B2B business model, where main profit comes from partnerships with pubs but a move into Schweppes new E-Business strategy of B2C Community provider and can be seen in India where Schweppes branded products are licensed by Coca-Cola India. Orangina has a Facebook page specifically for the Indian

One key note is the relationships in the beverage industry are complicated and diverse but

will be made clearer as this report explores the activities of a few of the brands that use to be part of the old CadburySchweppes beverage group Orangina and Schweppes.

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market, but activity seems limited and almost zero marketing efforts online appear as they only seem to be beginning their new digital business strategy.

Overview of the different business operations:

Asia Former subsidiaries of Cadbury Schweppes Formly use SAP ERP systems But now Suntory use Fujitsu Cloud hosting in New Zealand and Australia for its SAP ERP

North America Owned by Dr. Pepper Snapple Group Use HCL to intergrate siloes and legacy IT systems in 2010 More service centric Sales improvements with salesforce.com's CRM systems Uses JDA Planogram Generator to reduce human error, speed up processes for space management and supply chain control (See John Williams quote in Appdix 1) DPSG leveraged in IBM's Congo to deliver deeper KPI's to improve efficiencies (See Apendix 2)

Europe orangina Schweppes uses Sagex3 ERP system for B2B CRM service with its own dedicated website (oranginaschweppes-pro.fr) builds organic ground up relations and campaigns Also a storehouse for user driven digital marketing content

Sales model: Europes B2C Model- Community Provider

The Business to Consumer (B2C) sales model is strongest when it is in the hands of OranginaSchweppes in France for the French and Spanish markets. As a traditional EBusiness B2C model would involve simply setting up an online marketplace for their bricks and mortar traditional store, this provides online entertainment and marketing for their consumers. OranginaSchweppes have established themselves as a huge online presence,
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http://cobby86.typepad.com/.a/6a01310ff81279970c0147e10b67ff970b-800wi

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reaching out to a new market of the 15-35 year old, which actually drive this market and hold 50% of sales in the soft drinks category [4]. B2C E-Business offers the advantages of Increase productivity Save time and money Enhance reputation by projecting a bigger image of your organisation Effectively put your presence before a giant number of prospects. This new E-Business strategy developed by Schweppes is far beyond its old methods and has brought a whole new style of marketing to the company. Schweppes strategy is to use social media sites as a platform to engage and interact with their consumers. Schweppes Facebook profiles have multiple pages for all its different regions and have proved a huge success.

Over 110,000 likes and each page offer something to the consumer. An example of this can be seen in their Schweppes appeal tab where they offer to improve your Schweppes appeal.

The impact of this new strategy has seen turnover in the last 4 years increase by 50% and volume up 25% and regular market gains and the Orangina Brand experience the fastest

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growth rate across all consumer goods categories in 2009 in France. Conclusive results about the impact of E-Business marketing from Schweppes.

Europe
Orangina-Schweppes France is number one in the market of fruit drinks (drinks that have a minimum of 12% fruit composition) and the second in the soft drinks one. With more than 600[1] million euros of turnover and 400[1] collaborators, the company produces and distributes 11 brands in France. However, three brands distinguish themselves from the rest: Schweppes, Orangina and Oasis. These three brands represent more than 70% [1] of the sales and benefit from excellent brand awareness.

The soft drinks market in France is very competitive and Orangina-Schweppes have to face the strong competition of other big international beverage makers as Coca-Cola, PepsiCo and DANONE. The other challenge Orangina-Schweppes France has to face in the refreshing, non-alcoholic drinks market is its particularity in terms of consumption pattern. French customers are for the most part concerned by health issues and soft drinks suffer from a bad image due to their sugar composition and their chemical components. Water is the main drink consumed while eating, and fruit juices are the first choice of customers in terms of refreshing drinks.

In order to face these challenges and increase its market share, Orangina-Schweppes made of Communication the main pillar of its development strategy. Thus, they increased significantly the allocated budget. But more importantly, they invade digital platforms as social Medias like Facebook and twitter, video hosting services as YouTube and Daily motion and the blogosphere.

This new digital strategy has been applied to each of the three brands: Orangina, Schweppes and Oasis but not in the same way. A digital strategy is generally effective and matches the 6

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desired impact when it takes in consideration the target customer's habits online, and offers him the appropriate content on the appropriate platform. Orangina-Schweppes understood it very well and adopted three different strategies using different platforms and content types. The most effective of these three campaigns is definitely the Oasis one which has been awarded best digital campaign and best social media campaign in 2011 in France. Orangina, the sparkling fruit drink leader Schweppes-Orangina France decided to use digital platforms as an extension of the offline marketing operation. They provide exclusive branded content and offer the fans the possibility to influence the next television and billboard ad. The channels that are being used for this campaign are Facebook, twitter and YouTube. The aim of this operation is to increase the product community by interaction and exclusive content. The success of such an operation cannot be easily measured but the viral impact have been achieved since more than 4 million people have seen the Orangina videos on YouTube dedicated channel.

Results:

Target customers young adults (15-25)

Facebook 272,529 fans

YouTube channel 4,336,588 views

Twitter 2,600 followers

Schweppes's target customers in France are adults (more than 25 years old). The Digital campaign for this brand is completely different from the one deployed for Orangina. 7

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Schweppes-Orangina France has decided to base its offline communication operation on the organization and sponsorship of events. Therefore in order to relay this campaign online and create high quality content that suits the targeted audience, the company decided to regularly invite bloggers. This strategy offered Schweppes an interesting exposure on several blogs. This digital operation is interesting because it offers the company the possibility to create high quality content indirectly. However the lack of control over the content may represent a risk. Results:

Target customers Adults

Facebook 103.045 fans

YouTube channel 592,386 views

Twitter 561 followers

Blogs 60 bloggers invited to last sponsered event

Oasis is a still drink based on natural ingredients, made of spring water and fruits. Young people 12-25 years old are the principal consumers of this soft drink. The digital strategy developed by the Orangina-Schweppes group for this product was part of a 360 communication operation that was lead on multiple platforms: TV, billboards, Internet, printed medias... The communication strategy of Oasis has always been based on funny cartoon-like fruits representing the 18 fruits used in the different Oasis drinks.

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In late 2009, the company decided to develop each of these characters and create exclusive content for each one of them. This operation was lead using Facebook Oasis (OasisForFun) page that reached 700,000 fans by the end of the year. In 2010, the company organized "Fruit of the year". This campaign first goal was to interact with the product's fans, entertain them and expand the community. The objective was to ask Facebook users to vote for their favourite fruit, the winner becoming the next star of the Oasis TV ad. This operation lasted 8 weeks and provided exclusive contents for each of the candidates. The campaign was a real success since it gathered 15 million votes and brought 300,000 new fans to the page. Facebook was the ideal platform for such an operation since it is the most developed social media for the 12-25 category of age. The operation was relayed through twitter for the older part of the target customers but all the interaction was conducted on Facebook.

Nowadays, the Oasis fan page gathers more than 2 million fans and is the first French page on Facebook. The digital strategy for Oasis remains the same: more and more branded content and viral video. Oasis is now also present with a dedicated website and on smartphones with exclusive games as "La chute"(the fall) that remained most downloaded free application in the French apple app-store for two weeks. Finally similar operations where launched more recently like the election of the tree new flavours or the now happening crowdsourcing for the Christmas album of the Oasis fruit characters.

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Target customers Less than 18 years

Facebook 2,012,723 fans

YouTube channel 11,151,301 views

The results of these three digital strategies combined with the global marketing operation speak for themselves. The company knew during the last 3 years a 10% increase [4] of their sales volume in France. And the digital strategy of Orangina-Schweppes has been acclaimed and awarded multiple times.

All in all, what the Orangina-Schweppes Digital marketing strategy teaches us is: Visibility and quality of execution are necessary for a digital strategy to be successful.

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A judicious choice of platforms and content types is indispensable for a campaign to be effective. Quality of content is one of the key elements a digital campaign should be based on. Branded and viral contents are the current trends. Interaction is one of the keys to success. Integrating the digital strategy in a global 360 marketing campaign (online and offline) can be even more affective and faster.

Part B
Company description
Sportslink is a family sports and social club located in Santry, Dublin 9, Ireland. It was formed in 1993 following the merger of the Public Services Sports and Recreational Complex limited (PSSRC) and the Telecom Eireann Staff Sports Club Limited (Telesport). The company offers a wide range of facilities including gym, swimming pool, all weather pitches, sports hall, indoor adventure area, members bar, conference rooms and restaurant etc. The company has an annual turnover of 1.7million (2010) and has approximately 50 employees working in different departments. The main source of their revenue is family membership subscriptions, the rest are come from facilities hiring and events organising. Their mission statement is to offer members first class sports and social facilities through our highly trained professional staff in a pleasant customer focused environment.

Weaknesses
Sportslink relies heavily on membership subscriptions however the reality is that the competition in Dublin (or North Dublin to be more specific) is very intense. Theyve tried a number of ways to promote themselves, for example, to issue free passes, to encourage existing members to bring in new customers by giving them discount, and to advertise deals on groupon.ie. However these activities did not help Sportslink to gain sales. They did not follow a strong digital marketing stagey, their website is badly organised and the only Facebook page was used for occasional activities announcing. Lack of digital marketing strategies and implementations led to low consumer awareness and commitment, we felt these are priority issues for Sportslink.

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Apply Schweppess digital marketing strategy to Sportslink

Based on what weve learned from Schweppes, we felt that their successful digital marketing strategies can be applied to Sportslink to increase sales opportunities. Successful implementation of these digital marketing strategies can help Sportslink to: 1) Create significant online market exposure, another sentence; to increase the likelihood of being found, 2) Create strong incentives for new customers to come to Sportslink and make them feel 80% committed before even walk into the door, 3) Maintain customer relationship.

Recommendations based on learning from Schweppes:

To increase visibility:
Local business listing: These lists are available on all search engines and it is very easy for a business to appear on them. On these lists the company can display it address, phone number, website and can appear directly on a map.

Local directories and review sites: Yelp, YellowPages...These websites have a big audience, and are often used by consumers when looking for businesses in a specific area. Moreover these websites allow users to add reviews. When these reviews are good, it can enhance significantly the popularity and visibility of the business.

Website: Websites are now affordable for any business. A website is a great tool to enhance the businesss visibility online if well used. Sportslink has already built a web site. However the actual website does not follow the basic rules of web design, content

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organisation and search engine optimization. Therefore it is indispensable to redesign and reorganise it. Social Medias: Social Medias has become an indispensable platform to invade to gain even more online visibility. Social media channel are free and easy to use. However some basic rules are indispensable to be followed in order to differentiate from competition. The Orangina-Schweppes brands presence is a good example of what should be done. Using the appropriate channels is indispensable. For Facebook, a good example of what a business Facebook page should look like is provided by the OranginaSchweppes brands pages (welcome page, visual content (images, videos...). Sportslink current Facebook do no differentiate itself from other pages. Most of the information is published using text format. A good way of increasing visibility and viral effect of these posts would be to use visual formats as images or videos. Each platform must target a specific demographic as can be seen in the Schweppes example of using Facebook for the younger users and then incorporating a Twitter campaign to target the older more business minded people. This strategy would be effective for Sportslink Gym as they could use social media in multiple ways following Schweppes example: o Create online discounts through Facebook for new members o Run campaigns on Facebook to encourage new users and existing users to return to the gym o Use twitter to keep members up to date on the gym and special offers as well as vacancies and events. Sponsor events Schweppes idea of Sponsor Events through twitter to offer members the opportunity to attend special events within the Sportslnk Gym, raising awareness and getting new members and current members alike back into the gym. Sponsored events like the Schweppes Craig Parry Mercy Hospice Charity golf raising money for charity while raising the brand and company awareness which is crucial for a business like Sportslink Gym which relies on customer involvement and return custom.

Conclusion
Like Schweppes, Sportslink must create a strong brand image, which might include a vivid company logo and use consistent themes throughout both company website and Facebook page. A strong brand impression would quickly grab customers attention. Select target customers are also important for Sportslink. The company currently target families, which 13

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would include two adults and their children. We would suggest Sportslink to create different sections and contents for different types of users, their information shown on the website and announced on Facebook and Twitter should use different words. Whats the key to B2C Community Provider? Constant updated information.

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Appendices:
Appendix 1: According to - John Williams, director, category management, Dr Pepper Snapple Group. Weve really changed the game with our new space management model, Williams said. While our past process would take as many as 600 hours and require 10 people to support, we now have a fully automated process that takes two people and about 40 hours to generate an equivalent number of planograms. JDAs solution accounts for bottler and fixture complexities, scales to an unlimited planogram quantity and leaves no room for human error.

Appendix 2: According to IBMs case study of DPSs roll out: With nearly $6 billion in annual revenues, the company has approximately 20,000 employees, 24 manufacturing facilities and more than 200 distribution centers across North America. This case study will focus on how Dr. Pepper leveraged IBM Cognos software to: Provide in-depth insight into production and operations. Gain access to information that was previously unavailable. Help identify manufacturing inefficiencies to reduce costs. Gain fact-based analytic and decision-making capabilities. Prioritize investments Drive continuous improvement across the organization.

The result: Plant managers have unprecedented visibility into their operations so they can identify production bottlenecks, resolve operational issues and optimize business performance.

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References:
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CiviWeb 2011. VIE ACCOUNTING ASSISTANT Available from: 18

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HCL 2009. HCL Technologies Signs New Five-Year Deal with Dr Pepper Snapple Group to Enhance IT Services and Solutions Available from: http://www.hcltech.com/media/press-releases/2009/06/30/ [Online] [Accessed 11 December 2011] TMCNET 2010. Dr Pepper Snapple Group Achieves 56% Annual ROI with Salesforce.com Available from: http://www.tmcnet.com/channels/crm-cloud-computing/articles/75377-dr-pepper-snapplegroup-achieves-56-annual-roi.htm [Online] [Accessed 11 December 2011] http://www-01.ibm.com/ IBM 2009. Information to reporting to smarter operations: Performance management at Dr Pepper Snapple Group Available from: http://www-01.ibm.com/software/success/cssdb.nsf/CS/SANS7Y4MUD?OpenDocument&Site=default&cty=en_us [Online] [Accessed 11 December 2011]
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Dr Pepper Snapple Group (US) 2010. Dr Pepper Snapple Group (US) Available from: http://www.adbrands.net/us/drpeppersnapple_us.htm [Online] [Accessed 11 December 2011] Forrester.com 2010. Case Study: Dr Pepper Snapple Group Partners With HCL To Drive Greater Service Centricity Available from: http://blogs.forrester.com/roy_wildeman/10-0414-case_study_dr_pepper_snapple_group_partners_hcl_drive_greater_service_centricity [Online] [Accessed 11 December 2011]
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