Gobie H2O

MKT 3300 – 005

Jeffrey Chang

Christian Garcia

Jordan Hawkins

Jatin Julakanti

Purushottam Jha Alex Kuhn

Sohaib Shaikh

Sports Marketing

Bottled water is expensive and harmful for the environment. It costs 1,000x the price of tap water and 3x the price of gasoline per gallon[1]. It takes over a 1000 years to biodegrade[2]

Key Issues

Most reusable water bottles lack stylish design, durability, and proper filtration

Most people don’t drink enough water and dislike the taste water at public facilities. However, would drink more water if they had a better water bottle.

Background Info[3]

Durable, with flex-flow technology

BPA free, environmentally friendly bottle

Sleek design

Has most advanced carbon filter in market. Removes 99.9% of contaminants in water

Secondary Data[4] Total Average plastic bottles per person annually 167 bottlesTotal Annual money spent annually on bottled water $15 billionTotal amount of all bottled water sold by Aquafina (Pepsi) and Dasani (Coke) annually 24%

Total percent of U.S. Water Bottle Market owned by Coke and Pepsi 50%

Total amount of bottled water each Coke and Pepsi sell annually

3.36 billion bottles

Total Profit made by Coke and Pepsi each year individually

$336 million

Total amount U.S. spends on bottled water annually $15 billionTotal Global Water Bottle sales annually $50 billion

Primary DataWe surveyed a sample of athletes, gym goers, and members of other groups who engage in little physical activity.

In our sample, we have 27.47% of people who engage in very high physical activity, 41.3% in medium, and 28.26% in low activity

We have compiled the following information and arrived at conclusions about consumer behaviors pertaining to water bottle purchase

28.26%

41.30%

27.17%

Two - Three (Z) Four - Five (Y) Six - Seven (X)

Moderate Activity (4-5 days)

High Activity (6-7 days)

Low Activity (0-3 days)

Primary DataWillingness to Buy Product Based on

Engagement in Physical Activity

# of

peo

ple

Level of Physical Activity

Primary DataWillingness to Buy Product Based on Age

Age

# of

peo

ple

Primary DataWillingness to Buy Product Based on Daily Water

Consumption

# of

peo

ple

Cups of water consumed per day

Consumer & Buyer Behavior

Low price and filter replacements are the two biggest factors for those willing to order Gobie H2O[5]

People who engage in physical activities on a regular basis are more willing to buy the product than people who do not engage in physical activities quite often.

People in the age group of 19-33 are more willing to buy the product.

People who are health conscious and prefer filtered water are more willing to order the product at the given price.

Taste, convenience, eco-friendliness are the three important factors that people take into consideration when buying a water bottle[5]

CompetitionPros Cons

Bottle • BPA free/ non-toxic• Dishwasher safe• User friendly• Extremely Durable• Non-Slip base• Affordable

• Filters needs to be replaced after 3 months or 100 gallons of use.

• Similar products in the market

Filter • Eliminates the chlorine taste and odor from tap water.

• The only 100% compostable filter unit

• Does not filter biological contaminants present in stream, lake or pond water.

Availability • Easy online purchase• No transportation needed

• Available only through its website.

• Delivery charge• Travel time

Competition

Gobie H2ONestle Ozarka

Aqua FinaDasani

NestleBottled Water

Similar Products

Pure

ContigoThermos

Vapur

Wholesalers

Primo

Glacier

Perceptual Map

Gobie H2O

Nestle

OzarkaDasaniEvian

Aqua Fina

Contigo

Thermos

Pure

Vapur

Chart Title

Like

Cheap

Like

ExpensiveDislike

SWOTStrengths Weaknesses Opportunities Threats

• Extremely Durable• High Quality product• Non-toxic• User friendly• Affordable

• Filters needs replacement every three months

• People being health conscious • Eliminates the taste of chlorine and odor present in tap water

• Many similar products in the market• Easily available water bottles like Ozarka, Nestle, Dasnai etc.• New entrants in the market

SWOT AnalysisStrength (Internal) Weaknesses (Internal)

Opportunities (External)

• Likely to produce greatest return on investment (ROI)

• Better product life and durability

• Committed and confident management

• Competitors have poor products

• Need more sales people

• Need more retail stores

Threats (External) • Threats of new entrants

• Financial pressure• New laws and

regulations

• Many similar products in the market

Segmentation & TargetingSegmentation:People who engaged in medium to high levels of physical activity throughout the nation.

Targeting:-That are in the middle to upper socioeconomic class -Who have access to gym facilities or exercise regularly-Need and want better alternatives to bottles/ fountains-Who are willing to invest money into said alternative

Positioning

Specialized• Very powerful

filtration device• Fits any cup

standard holder• Non-slip base• Dishwasher-safe• Very sleek design

Environmentally Friendly• BPA free• Carbon Filter• Compostable filter

cartridge

Ergonomic• Ergonomic

mouth piece• FLEXFLO grip• Comfort finger

loop

Goal: To provide a better water bottle to the public.

Market Strategy (Diversification)Product Development-To introduce an improved product to fill specific needs and wants of customers-Provide a better alternative to standard water bottles

Product Differentiation-Competitive advantage in having a top end filter in the bottle-Environmentally friendly product and dishwasher-safe

Product

It also has an ergonomic-mouth piece, comfortable finger loop, and a cap storage.

It is environmentally friendly, dishwasher-safe, and BPA free[1].

The Gobie H2O water bottle is a specialized water bottle with a top-end carbon filter as well as a patented FLEXFLO grip.

Price

Odd-Even Pricing- Cost of the Gobie H2O is $29.95- Cost of a new filter $9.99- The presumption is that it is over $20 rather

than about $30.

Psychology of Pricing - The odd endings ($29.95)- Buyers feel like they are saving and the

demand goes up.

Objectives and Elasticity Objectives1. Survival2. Maximize Profit3. Eliminate Bottled Water Waste for a Clean Environment

Constraints 1. Competition 2. Demand for the brand3. Lifecycle Stage

Elasticity:

Reduces PE Increases PE Unique (Filter) Substitutes

Bottled Water(Aquafina, Dasani) Other Water Bottles(Gatorade, PowerAde)

Difficult to Compare

Selection of MediaMedium Advantage Disadvantage Radio Low cost; can target

specific local audiences; ads can be placed quickly; can use sound, humor, and intimacy effectively.

No visual element; short exposure time and perishable message; difficult to convey complex information

Internet Video and audio capabilities; animation can capture attention; ads can be interactive and link to advertiser. Free using Facebook or Twitter.

Animation and interactivity require large files and it takes a long time to load. Effectiveness is still uncertain.

Outdoor Low cost; local market focus; high visibility; opportunity for repeat exposures.

Message can be short and simple; low selectivity of audience.

PromotionType Mass or

CustomStrengths Weaknesses Payment

Sales Promotion

Mass Can be changed accordingly

Can be abused and copied

All different kinds

Personal Selling

Custom Choose where to advertise, say what you want and get immediate response

Many variables between who is selling the product

Pay people on salary or commission

Public Relations

Mass Best trusted and relied on

Hard to get media entailed

Varies depending on media

Advertising Mass Best way to get the product out to the public

Hard to tell if it is working and might be expensive

Choose where and for how long to promote

Direct Marketing

Custom Customer friendly and easily created

Expensive to monitor

Costs or communication

AllocationMedia PriceFacebook FreeTwitter FreeGoogle Adwords $2,000, (25,000 Clicks

120 Days)Promotional Campus Event & Newspaper

$5,000

Apartment Flyers[6] $3,000, 60,000 per month for 2 months

Total $10,000

Holiday Ads

Facebook Ads

Direct Marketing

Online Sales

Advertising Time Pattern

Janua

ry

Febua

ryMarc

hAp

ril May June July

Augu

st

Septem

ber

Octobe

r

Novem

ber

Decembe

r0

5000

10000

15000

20000

25000

30000

35000

40000

45000

50000

Sales

Sales

Direct Marketing

Not only does this save us time but also gets us immediate responses, its cheap and we can choose our target market[7]

We plan on focusing on opinion leaders who carry a high level of influence, like fitness and nutrition experts.

Gobie is targeting professional and collegiate sports programs it has a preference among people who engage in high physical activity.

With direct marketing, data collecting is convenient and efficient[7].

PlaceGobie H20 is currently sold in only a few retail stores nationwide (right) [8]

It will be expanded to major sports and retail stores nationwide, such as Sports Authority and Walmart

Online ordering is available at http://www.gobieh2o.com/

Product Life Cycle

Gobie H2O is at the growing stage in the Product Life Cycle-Penetrate market to more outlets-Gain Awareness

Branding Strategy

Private Branding Strategy- Bottle- Filter- Koozies- Travel Bag

Success Metrics

Increase sales by 20% by end of December 2014.

Introduce Gobie H20 to major retail stores like Walmart and Target by March 2014.

Successfully direct market to a sports team or opinion leader by June 2014

Bibliography1. http://money.howstuffworks.com/bling-water1.htm2. http://thewaterproject.org/bottled_water_wasteful.asp3. http://www.gobieh2o.com/pages/how-to4. http://www.treehugger.com/clean-water/the-us-consumes-

1500-plastic-water-bottles-every-second-a-fact-by-watershed.html

5. http://www.statisticbrain.com/bottled-water-statistics/6. http://www.nextdayflyers.com/flyer-printing/4125x525-

flyers.php?mkwid=sfNkJSZXO_dc%7Cpcrid%7C26823264242&gclid=CP-wkrKwhLsCFShk7AodlkoALg&mm_campaign=7EE1041E211F030A3412072F62D66840

7. http://www.switzer.com.au/small-business/business-management/marketing/feature/four-benefits-of-direct-marketing/

8. http://www.gobieh2o.com/pages/find-a-retailer

“Bottle Water Taste, Without the Lifetime Cost or Waste”