glaceau
TRANSCRIPT
Glaceau: Marketing Vitamin water
A Case Study
Submitted To:Ms. Shailja Manocha
Submitted By:Anand Sagar (20091103)Ashish K Rai (20091104)
Founded in 1996 by J. Darius Bikoff
Created the enhanced water market
Number one player in the enhanced water segment
Three products lines:
Vitamin water
Smart water
Fruit water
Glaceau Overview
Vitamin water range includes green tea and
polyphenol-based products
Products distributed in all US states
Visionary management team with proven
entrepreneurial skills and long-time industry
managers with experience in beverage
majors
Glaceau the brand
Glaceau Vitamin water is among the10 brands that have “rocked the world” as per Advertising Age, the authoritative marketing journal
Abstract of the case
• The case highlight the marketing strategy of US
based energy brand based inc, maker of the
Glaceau range of enhanced water product
• It’s product were different in various aspect
including packaging, appearance, labels and
ingredients; it was category creator
• It was promoted through vehicle marketing, retail
sampling, banners, posters & campus
ambassadors
• By 2006, several famous celebrities from sports &
entertainment arena endorsed Glaceau product
• Case also described its unique distribution strategies
• Notwithstanding the success of vitamin water, industry
expert felt that production may face stiff competition
from the established players like coca-cola & Pepsi,
which were launching their own enhanced water
product owing to there growing popularity
Abstract Continues…
Issues….
• Understanding the marketing mix adopted by
Glaceau for vitamin water
• Critically examine the promotion and distribution
strategies for vitamin water
• Analyze the factor that helped Glaceau carve a niche
for itself in a saturated beverage market in the US
• Examining the challenges Glaceau facing from
established player
Understanding Marketing Mix
• As vitamin supplements are attractive to health
conscious, vitamin water is using its name &
ingredients
• Bright colors & variety of flavors with each for
unique purpose (i.e. energy, clarity, increased
metabolism)
• Lined up on a supermarket, convenient store shelf,
drug stores, selected food service locations & on
internet
Product
• The Vitamin Water 20oz average unit price
range from $1.20 to $1.50 in the grocery
stores and the price for 32oz range from
$1.90 to $2.20
Price
Promotion
• It took Glaceau four years to launch a major
ad campaign for which company spent US $ 5
million
• The billboards of Vitamin water placed in
major metro markets
• Campaign aimed at educating the customers
about the features of vitamin water
• Glaceau launched 39 tasting vans, popularly
known as Glaceau testing vehicles.
• The endorsements with celebrities continued
& in 2005, several athletes and entertainers
were chosen to endorse Glaceau products
• Advertisements do not explain what the
product is about & feature athletes in some &
musicians in others which created confusion
Place
• Bikoff avoided supermarket chains till he could afford
the slotting fee and concentrated on mom& pop
stores
• From there vitamin water moved organic food stores
and retailers and later on to Albertsons and Safeway
food stores
• Instead of tackling several markets at once, it was
launched in one market at a time
• To establish a good market position in California, it
conducted a competition between two of their
distributors to see who can open up more accounts
• By 2004 Glaceau has identified 10 target markets
• Marketing managers were responsible for carrying
out sampling & coordinating media activities
• Bikoff believe in marinating personal touch with
distributors
Segmentation Variables
Demographic • Age: Young adult smoker 18+ • Gender: Female/Male
Geographic • Region: World wide• Density: Urban /Semi urban
Psychographic • Consumer lifestyle: Fun, Risk Taker, Survivor• Personality: Compulsive , Authoritarian Benefit Mild stimulant
Target Audience
Before 1950:
Targeted women
Adventurous
After 1950:
Men ( To young adult )
Adventurous
Health conscious people
Positioning
Perceptual Map
Filter Cigarette
Non-Filter Cigarette
Low Tar
High Tar
MARLBORO
CBBE MODEL
Response
Judgement Feeling
Performance Imagery
Salience
•Ultimate social status•Loyal Customer•High Affiliation
•Self-satisfaction•Feeling of Macho•Ruggedness•Master of their own
•High Quality•Best Brand in World
•Convenience Product•Cigarette with Filter•Low Tar
•Classic/Independent Image•Social Cultural Image•Sporty Image
•High Awareness•Most Commonly Recallable Brand
• It is scoring in “hipness” market, with dozen
drinks in a rainbow of colors, each with a
name that promises more than thirst relief -
"determination," "focus" and "rescue“
• Advocated healthy living through low-calorie,
low sugar drinks, and non-carbonated water
with additional nutritional supplements
SWOT : Analysis
•Actual sugar content &•Serving size per bottle
is a major concern
• Balanced Flavors• Their motto is their strength•Their online presence reflect same brand outlook
•Pepsi formulating strategy to directly compete against vitamin water
• The “Trendy” beverages become most popular• Consumer looking for alternative beverages with health
Strengths Weakness
Opportunities Threats
Motivation
• Needs - Acquired
• Goal - Product specific goal
• Motive- Rational
Personality Traits
• Consumer Innovativeness : medium-high
• Dogmatism : Low
• Social Character : Inner directed
• OSL : Medium-High
Cognitive Personality factors:
• Need for cognition: High (verbaliser)
Perception
• JND - S2 > S1
• S1 is plain water/soft drink
• S2 is vitamin water
• Perceived Pricing - Efficient
Learning
• Learning - Intentional
• Cognitive learning is
applicable
• According to ELM model,
Central route is followed as
there is high level of
involvement by customer
Consumer Attitude
TRICOMPONENT ATTITUDE MODEL
• Cognition
• Affect
• Conation
Reference group appeals
• Celebrities- Britney spears,
Nicole Kidman,
Madonna
• Expert
• Employee spokesperson
Product Characteristics that Influence Diffusion
• Relative
Advantage
Adapter Category
• Innovators
• Early Adopters
• There is a Doubtful Positioning about the product,
they need to decide how to repositioned itself so
that its brand image & name are in line with its
actual product content
• It should offer extensions to its original enhanced
beverage line
• Packaging and copy styles would be consistent
with that of the current product
Recommendations
• It need to decide how to utilize other forms of
marketing, while still maintaining its humorous,
lighthearted image
• It has been able to capture consumers through its
previous promotional endeavors, a focus on building
loyalty is critical in order to keep theses customers
• Advertisements should include drive-to-site
messaging so that customers can learn & interact
with the brand
• It needs to be placed in amusement parks which
will give more market share & introduce product
as healthy alternative where soda is usually
served
• People tend to think of a product as lower quality
when it is priced lower than its competitors, so
Vitamin Water will be kept at a constant prices,
but slight increases due to inflation rate
• There should be no coupons for the products
since it will cheapen the product and lowers its
quality
• Sustainable growth follows the path of
constant product innovation
THANK YOU