“Glaceau- Marketing Vitamin Water”

By-

Rashmi Agarwal (42)Vikas Upadhyay (64)

Smita Jain (57)Anshul Bhave (08)

Nisha Garg (29)Sohail Rana (58)

By-

Rashmi Agarwal (42)Vikas Upadhyay (64)

Smita Jain (57)Anshul Bhave (08)

Nisha Garg (29)Sohail Rana (58)

Glaceau -Marketing Vitamin Water

Introduction

• Glaceau is a product of Energy Brands.

• Glaceau was started in 1990s by Darius Bikoff. (Founder CEO of energy brand)

• Its main product include smartwater, fruitwater, Vitaminwater.

• Vitamin water was the highest selling among three.

• Fruitwater was launched in 20 ounce bottle with sports cap.

• In 2005 Vitaminwater accounted for 80% sale of Glaceau.

Contd.

• In 2005 Glaceau product were being sold in all 50 states of US.

• Glaceau Vitamin water was priced higher than the other soft drink.

• Packaging played a major role in its marketing.

• Several athletes and entertainers endorsed glaceau product.

• It used celebrities,billboards,interactive sessions and humorous advertisements and promotional activities to grab attention of the consumers.

• In 2006 Glaceau Vitaminater was among the top 10 bottled water in US.

• In 2006 Tata acquired a stake of 30 percent for US $677 million.

Distribution

• To establish a good market position in California, Glaceau conducted a competition between two of their distributors to see who can open up more accounts.

• By 2004 Glaceau has identified 10 target markets. The marketing managers were responsible for carrying out sampling activities and coordinating media activities in the area.

• Bikoff was a firm believer of maintaining a personal touch with distributors.

• Instead of tackling several markets at once and going in for a national launch, Vitamin water was launched in one market at a time.

Segmentation

GEOGRAPHIC

• Region : All

• City : Urban and semi-urban

DEMOGRAPHIC

• Age : Above 12 years.

• Education : Atleast Literate.

Contd.

PSYCHOGRAPHIC

• Lifestyle : Health conscious, Sports oriented.

BEHAVIORAL

• Occasions : Regular.

• Benefits : Quality.

• Usage rate : High.

• Attitude : Enthusiastic, positive.

Target Audience

• Health conscious people who usually spend on their health maintenance.

Product Levels

• Core benefit : To quench thirst.

• Basic benefit : Vitamin water.

• Expected benefit : Flavours

• Augmented benefit : Packaging, specific nutrients.

• Potential benefit : Protection from body ailments.

Perceptual Map Low on calories(Healthy)

High on calories (Unhealthy)

Enhanced water(Vitamins)

Plain Water/ soft Drink

Vitamin water

Coke

AquafinaDasani

Buying Behaviour Complex buying behavior.

CPV(Customer Perceived Value)

Total Cost Total Benefit

Monetary Cost(H)Time Cost(L)Energy Cost(M)Psychological Cost(L)

Services Benefit(M)Personnel Benefit(M)Product Benefit(H)Image Benefit(M)

CPV=Benefit/Cost. CPV=MMHM/HLML CPV is >1

Personality

FREUDIAN THEORY:

• Ego(rational, planner, thinker)

NON FREUDIAN THEORY

• Aggressive (desire to excel and desire admiration)

COGNITIVE THEORY

• Need for cognition- low

Trait Theory

• Innovativeness- HIGH

• Dogmatism- LOW

• Social character- INNER DIRECTED

• Need for Uniqueness- MEDIUM

Maslow’s Theory

• Physiological Need :Removing thirst .

• Safety Need : Health Care.

• Social Need : Be healthier.

• Esteem Need : Status symbol (Higher price)

Learning

Pavlov’s Classical Conditioning Pavlov’s Classical Conditioning

VITAMINS(US) HEALTH(UR)

GLACEAU(CS)

Perception

• Pricing strategy based on perceived value

• Satisfaction based pricing. (benefit driven pricing and flat rate pricing)

JND

WEBER’S LAW

• Stimulus 1 (S1)- Plain Water

• Stimulus 2 (S2)- Vitamin Water

Therefore, S1<S2

Reference Group Appeals

• Celebrities- Britney spears,Madonna,Nicole Kidman.

Positioning• ATTRIBUTES - Vapour distillation, vitamins, supplemented with

nutrients and electrolytes and sports cap.

• BENEFITS - Thirst quencher, Health care.

• PRODUCT CATEGORY - Own category

• USER - Health conscious.

• COMPETITION -Form level - Competition with another brands.