Beruflich Dokumente
Kultur Dokumente
Introduction
In September 2006, PepsiCo Inc. (Pepsi)5 announced that it had agreed to change the
packaging, label, and cap of its SoBe Life Water6, as per the settlement it had reached
with Energy Brands Inc., (Energy Brands), maker of the Glacau range of enhanced
water products. In April 2006, Energy Brands Inc. had filed a lawsuit against Pepsi,
alleging that SoBe Life Waters packaging, label, and cap were similar to those of
Glacau vitaminwater and that Pepsi intended to confuse the consumers with its new
packaging. As per the lawsuit, Pepsi had resorted to trade dress infringement and
dilution and its label and bottle resembled that of vitaminwater. It was also alleged
that Pepsi had launched SoBe Life Water after it failed to acquire Energy Brands in
early 2006. On reaching the settlement with Pepsi, Founder CEO of Energy Brands,
Darius Bikoff (Bikoff), said, We were pleased with the overall settlement. There has
been a history of attempts to ride the success of vitaminwaters coat tails. And it is
kind of a shame because I think our competitors are better served trying to come up
with their own innovation ... 7
3
4
Caroline Wilbert, Enhanced Waters Popularity has Many Taking the Plunge, Cox News
Service, December 28, 2005.
New York based Morgan Stanley is a global financial services firm and operates in four
business segments including institutional securities, global wealth management, asset
management and Discover credit card. In 2005, the company recorded revenues of US$
52.49 billion.
Heather Todd, Rising Stars, Beverage World, January 15, 2005.
Kindred Keizah Inc. is Colarado, US based marketing and brand strategy firm. In September
2005, Kindred Keizah was renamed Egg Strategy Inc. The companys clients include CocaCola, Toyota, and Royal Caribbean among others.
PepsiCo Inc. is a global manufacturer and marketer of beverages and food products. In
2006, the companys revenue was at US$ 35.14 billion. Some of the well known brands of
Pepsi are Mountain Dew, Tropicana, Twister soda, Aquafina, and Gatorade.
SoBe Life Water is water with added vitamins and antioxidants. It was available in five
flavors pomegranate cherry, blackberry grape, orange tangerine, strawberry kiwi and
passionfruit citrus.
Pepsi, Energy Brands Settle, SoBe Label to Change, Reuters, September 05, 2006.
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Strategic Marketing
Analysts opined that the lawsuit and its subsequent settlement indicated the growing
insecurity of the soft drink majors, which were facing a threat from companies
promoting healthy alternatives to soft drinks. Energy Brands, the parent company of
Glacau, was one such company, which advocated healthy living through low-calorie,
low sugar drinks, and non-carbonated water with additional nutritional supplements.
Glacaus line of enhanced water products comprised vitaminwater, Smartwater, and
Fruitwater. Energy Brands was credited with creating a new category of drinks
popularly known as enhanced water products.
According to analysts, Glacaus success in a scenario in which major soft drinks and
beverage manufacturers like Coca-Cola and Pepsi had a strong hold over the
distribution network and spent aggressively in marketing their products, illustrated
that even the most saturated markets could accommodate innovative products. In
2005, less than a decade since it began as a small start-up, Glacau earned revenues of
over US$ 350 million, with compounded annual growth of 200% per year. It found
prominent shelf space at the stores of several major retailers across the US. In the
process, Bikoffs efforts were also recognized. In 2000, Bikoff was awarded
Brandweeks Marketers of the Next Generation and in 2001, Crains Weekly named
him New Yorks Top Entrepreneur. He was among the finalists in Ernst & Youngs
Entrepreneur of the Year in 2003.
The Beginning
In the early 1990s, when Manhattan was hit by water contamination, Bikoff8 set out to
buy bottled water and found that except for the brand name, there was very little
difference between the different brands of bottled water sold. Bikoff was looking for
additional nutritional value rather than plain water. Finding none, he started
conducting an in-depth study about different companies making bottled water. He
found that he could use vapor distillation9 to create an alternative to bottled water.
Bottled water was generally procured from springs and contained some dissolved
minerals, which could be removed using vapor distillation.
Bikoff then came up with the idea of starting a company that could offer a healthy
alternative to soft drinks and plain water. He decided to name the company Glacau
a combination of the words glace (ice) and eau (water) to signify clean water.
Bikoff started the venture in the year 1996, from his fathers office in Queens, New
York. He worked with R&D professionals to develop the companys first product
Glacau Smartwater, which was sourced from glacial aquifers in Connecticut, vapor
distilled, and supplemented with electrolytes 10. According to Bikoff, We founded the
company with the idea of creating bottled water that was biologically better than
spring water; something more pure and less susceptible to the natural variations and
contamination that can occur with spring water. Then we added natural electrolytes
8
10
Bikoff studied liberal arts and joined his father in his metals business. He began supplying
metal cans and containers to several customers including Pepsi, Anheuser-Bush, and Quaker
Oats.
Vapor distillation involves heating the water to 100oC and applying pressure, through which
water is vaporized into oxygen and hydrogen molecules. These molecules are condensed
again to obtain water that is free of contamination.
Electrolytes contain free ions. Electrolytic drinks containing sodium and potassium are
frequently used to replenish the bodys water and electrolyte levels.
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15
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Strategic Marketing
It was not long before Bikoff realized that he was creating a new category of product,
enhanced water. According to Bikoff, Weve created a new category that we call
nutrient-enhanced bottled water. Its a category based on delivering value-added
nutritional benefits in a hydrating beverage, so that people can drink more water with
more usage occasions.18
Once the products were ready, the challenge was to get shelf space from vendors.
There were problems in distributing this product through major retailers, as they were
not willing to give expensive shelf space for new products. According to Bikoff, For
me when I got started that meant walking up and down the streets of Manhattan with a
cooler bag on my back with samples of Vitaminwater in it trying to convince people
in delis to buy it who were rejecting me one after the other. 19 But his repeated trials
did have some effect. He said, Vendors would buy just so they wouldnt have to see
my face again.20
There were several small retailers who were ready to try out new products. These
retailers were highly impressed by the fact that Bikoff was delivering and promoting
the products himself and it was they who gave him a chance. By initially targeting
smaller stores, the company built up demand. The products unusual appearance and
unconventional packaging attracted the customers.
In 2001, LV Capital, the investment arm of LVMT Mot Hennessy Louis Vuitton
SA21, made an investment in Energy Brands. LVMH invested US$ 5 million for a
minority stake in the company. In the year 2002, Glacau products were distributed in
43 states in the US through 160 distributors. In April 2003, Energy Brands received
equity investment from The Shansby Group, a private equity investment partnership.
Initially, companies like Pepsi and Coca-Cola dismissed the Glacau products as a
passing fad, but with the product gaining popularity and outselling their products like
Dasani and Aquafina in areas like New York and the Northeast of the US, the giants
were forced to sit up and take notice. In 2002, Coca-Cola introduced fortified water,
Dasani Nutriwater, and Pepsi came up with Aquafina Essentials. However, neither
fared well in the market and both products were later discontinued.
By 2005, Glacaus products were being sold in all the 50 states in the US. Compared
to January 2004, the sales had grown by 80% in value terms in January 2005. As of
2005, the company was selling around two million bottles per day, with vitaminwater
accounting for 75% of the total sales. For the year ending January 2006, the
companys revenues registered a growth of 90%.
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19
20
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22
The Tata Group is one of the largest business conglomerates in India, with total revenues
equal to 2.8% of Indias GDP. The group operates in 40 countries and its products are
sold in more than 140 countries. The Tata Group has interests in the engineering,
materials, IT, communication, automotive, chemicals, and energy sectors. The company
employed more than 240,000 people across the world, and its revenues in 2005 were at
US$ 21.9 billion.
23
San Francisco, US based TSG Consumer Partners was founded in 1997. The private equity
firms primary focus is on branded consumer companies.
24
25
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Strategic Marketing
Exhibit I
Aquafina
472,807
14.3
Private Label
459,662
13.9
Dasani
393,605
11.9
Poland Spring
227,367
6.9
Propel
193,928
5.9
Arrowhead
159,511
4.8
Dannon
156,874
4.8
Deer Park
121,857
3.7
Glacau vitaminwater
116,411
3.5
86,882
2.6
Ozarka
* For 52 weeks ending July 16, 2006, sales through food drug and mass merchandise
(excluding Wal-Mart).
Source: Information Resource Inc.
Enhanced Water
The products from Glacau were targeted at health-conscious customers. The launch of
the products coincided with the growing health consciousness among the consumers in
the US, who were looking for healthier alternatives to high calorie soft drinks. Instead of
using artificial sweeteners, Glacau used crystalline fructose, a purified sweetener
derived from fruits. For making vitaminwater, flavors, vitamins, natural colors, and
other nutrients were added to Smartwater. The product was positioned as water with
additives that were good for the consumer. According to Bikoff, Youve got a lot of
people stuck on soft drinks who know they should be drinking more water, but theyre
not ready to give up the flavor and variety that comes with soft drinks. How do you help
those people get to bottled water? In my mind, the answer was to build a bridge, and
vitaminwater has become the bridge for millions of people.26
Once vitaminwater was ready, instead of sticking to the usual names, the company
came up with names that suggested their properties, like Power-C for water with
Vitamin C, Endurance for peach mango flavored water with Vitamin E, and Multi V
for multivitaminwater. Vitaminwater was available in several flavors, each with a
distinct name and color (Refer to Exhibit II for visual of vitaminwater). Each flavor
was for consumption at a specific time. For example, vitaminwater Essential had a
deep orange color, and had to be consumed in the morning and contained calcium and
Vitamin C. Vitaminwater Focus contained Vitamin A and Leutin. It had a dark pink
color with a kiwi strawberry flavor, and was to be consumed during the afternoons
(Refer to Exhibit III for the details of different flavors of vitaminwater).
26
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Exhibit II
Vitaminwater Formula 50
Source: www.amazon.com.
Exhibit III
Vitaminwater Flavors
Flavor
Ingredients
Power C Dragonfruit
Vitamin C + Taurine
Vitamin A + Lutein
Vitamin C + Glucosamine
Essential Orange
Vitamin C + Calcium
Vitamin E + Ribose
Vitamin B + Guarana
Vitamin C, E
B Complex + Chamomile
Multi V Lemonade
Vitamin C + Zinc
Vitamin B + Potassium
Glacau used packaging as a means of communication and to build a bond with its
customers. The bottles were made of clear plastic so that the color of the water could be
seen through it. The labels were in simple black and white, with a color stripe running
through them. Gary Hemphill, Managing Director of Beverage Marketing Corp, a
research and consulting firm in Manhattan, said, The packaging is great. People walk
241
Strategic Marketing
into a store because theyre thirsty, and they dont know what theyre going to buy until
they open up the cooler. The packaging plays a role in selling the product.27
Humor was a part of all Glacau products. The label on one of the bottles read, Note:
although this product contains more of the right electrolytes you need, its not just for
serious athletes. Sure, jocks seeking more oomph to go extra innings, play a fifth-set
tie-breaker or nail a triple axel benefit from drinking this beverage. However, it has
been said that the athletically challenged can also use it while engaging in their own
forms of strenuous activities, like, well, becoming a dungeon master or playing a
game of full-contact pictionary. Vitamins + water = all you need.28
Another label read, Recommended for gymnasts, ballerinas, tight-rope walkers,
people who do yoga, clowns who ride unicycles while juggling chain saws, ninjas,
peg-legged pirates and/or individuals simply requiring equilibrium in their lives. 29
All the labels had details about the ingredients, their use, total calorie count, and a
table of nutritional facts. The bottom of the label read, The inside is natural, the
outside is plastic. From time to time, the labels on the bottles were changed and this
generated lot of interest in the consumers, who looked forward to the next change.
According to Mike Repole (Repole), President, Glacau, Our brands have
personality, people bond with our personality because of the great packaging and the
little surprise they get when they read the label. I think that sets us apart.30 (Refer to
Exhibit IV for some of the labels of vitaminwater).
Exhibit IV
Vitaminwater Labels
27
28
29
30
Product
Energy
Label
We rebut any offers by professional sports leagues to become the
official water of anything. Although this is a great alternative to
sports drinks we do not believe in succumbing to commercialism.
Unless, of course, theres a lot of cash. Then well talk.
Endurance
Professional athletes have not endorsed this product ... excessive use
will not lead you to have a desire to be like Mike, Magic or even
athletes named Ned.
Multi v
Lemonade
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Product
Formula
50% Grape
Power C
Dragonfruit
Vital T
Essential
Focus
Rescue
Defense
Label
Inspired by todays most talked about artist, hottest record producer,
and soon-to-be movie star, this not-so-hypnotic tonic contains (hint,
hint) 50 percent of many of the important vitamins that you need
every day.
Despite having the word dragon in its name, no actual dragons
were harmed in the making of this product.
Grow up but dont grow old, thats why weve created this drink
packed with antioxidants to keep you looking and feeling young at
heart.
Although this product is not part of a so-called nutritious
breakfast, it does contain many vitamins.
Focus provides natural support for healthy eyes and skin and is
therefore good for: kids with tape on their glasses, people who
thread needles, seeing eye-dogs and anyone else who could use a
little more perspective.
We love happy hour one entire hour devoted to your happiness.
Thats why we created rescue with a stiff shot of B vitamins and
other good stuff to help you unwind after eight hard hours devoted to
making bank.
The world is a wonderful place, but it sure is germy. Doorknobs,
computer keyboards, and anything inside a mass transit vehicle
they are putting your immune system to the test. Thats why we
created defense, so you wont be crying like a baby at the doctors
office.
Powerade is a sports drink by Coca-Cola and was introduced in the year 1998.
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Strategic Marketing
Glacau with the support of a creative agency located in New York, aimed at
educating the consumers about the features of vitaminwater like low calories and
enhanced vitamins. It illustrated the functionality of the vitaminwater through
animated figures. The humorous advertisements caught the attention of the consumers
all across the country.
Exhibit V
One of the billboards for vitaminwater Energy had a picture of a mother pulling a
shopping cart full of kids and read Drink Energy. Handle More. According to Oza,
The campaign will give (consumers) who havent experienced Glacau vitaminwater
an opportunity to get turned on to it and current drinkers even more reasons to drink
it.32 Another advertisement released later, read OJ Found Guilty (of being high in
sugar that is) (Refer to Exhibit VI for the Advertisement). The advertisements helped
in attracting the customers and in maintaining contact with them.
Exhibit VI
Source:http://buffaloflickr.blogspot.com.
32
Kenneth Hein, Glacau Puts More into Message, Brandweek, June 28, 2004.
244
Glacau launched 39 tasting vans, popularly known as Glacau Tasting Vehicles. The
vehicles were parked at some busy locations and a Microphone Jockey played music
and invited passers-by to taste the products. In the retail stores, Glacau set up
hydrology booths, where the customers were educated about the benefits of
vitaminwater.
In a commercial for Reebok33, Rap artist 50 Cent34 appeared holding a bottle of
vitaminwater, after which Glacau decided to team up with him to create a new grape
flavored vitaminwater called Formula 50. The product was released along with a pop
album by 50 Cent.
The endorsements with celebrities continued and in 2005, several athletes and
entertainers were chosen to endorse Glacaus products. These included Kelly
Clarkson35, who co-created a limited edition label with Glacau, David Wright 36,
Kasey Kahne37, and Allen Iverson38 (Refer to Exhibit VII for Advertisement featuring
Kasey Kahne).
Exhibit VII
Source: www.flickr.com.
33
34
35
36
37
38
Reebok International Ltd., subsidiary of Adidas AG, produces athletic footwear, apparel and
accessories.
Curtis James Jackson III popularly known as 50 Cent, is a well-known American hip-hop
and rap artist.
Kelly Clarkson is an actress, singer, and songwriter and was the winner of the First
American Idol in 2002.
David Wright is a baseball player of New York Mets.
Kasey Kahne is auto racer, and drove in The National Association for Stock Car Auto
Racing (NASCAR)s NEXTEL cup.
Allen Iverson is a professional basketball player of the National Basketball Association, and
plays for Denver Nuggets.
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Strategic Marketing
Distributing Vitaminwater
Being a category creator had its own advantages and disadvantages for vitaminwater,
as far as distribution was concerned. The supermarkets and retailers demanded
slotting fees, sometimes running into thousands of dollars, for displaying new
products. Bikoff avoided supermarket chains till he could afford the slotting fee,
concentrating instead on mom-and-pop stores. He then realized that in order to
enhance the reach of the product, it was necessary to move to delis42 and other smaller
stores to cater to different customers. From there, vitaminwater moved on to organic
food stores43 and retailers like Whole Foods, who gave a chance to small vendors to
display their products. Vitaminwater was later sold in Albertsons and Safeway stores.
Just getting the product placed on the shelf was not enough; it was important to ensure
that consumers bought the product. In a deliberate plan, Bikoff made the distributors
place vitaminwater along with bottled water rather than sports beverages.
Vitaminwater with its bright color stood out from the scores of water bottles.
39
40
41
42
43
The 12 stops were Houston, Dallas, Los Angeles, San Francisco, Seattle, Chicago, Detroit,
Atlanta, Washington DC, New Jersey, New York, and Boston.
Bob Phillips, Back to School, Progressive Grocer, June 01, 2006.
Metro is free daily newspaper, published from Monday to Friday. In the US, Metro is
published from New York, Boston, and Philadelphia. Metro International publishes in 88
cities in 19 countries across the world.
Delicatessen popularly known as Deli is a type of store which offers a wide range of fresh
food. Deli stores are smaller than grocery stores. The products offered by Delis include
freshly made sandwiches, green salads, wet salads, and a few precooked products.
Organic food stores are grocery stores that typically sell natural and organic foods. Organic
foods are produced according to certain standards which include not using pesticides,
artificial fertilizers, etc. Organic food is processed without preservatives.
246
Instead of tackling several markets at once and going in for a national launch,
vitaminwater was launched in one market at a time. After the product was successful
in New York, it was launched in California. Citing the distribution network in New
York, Bikoff convinced the distributors in California to distribute the products.
Vitaminwaters launch in California was a highly publicized event, in which Bikoff
told the sales force of the distributor to start selling the product near the beach. Soon
several celebrities in California were photographed holding bottles of vitaminwater.
To establish a good market position in California, Glacau conducted a competition
between two of their distributors in 2003, to see who could open more new accounts
in a span of one week. In order to lend their support to the distributors, all the staff
from Glacau headquarters, including the top executives and receptionists, in New
York were flown in to California and they worked with the distributors. The
competition was called Mike-Ro Classic, with Mike referring to Repole, then
executive Vice-president at Glacau, and Ro referring to Oza, who headed the two
distribution teams. According to Repole, Every market is different. The easiest thing
we could have done would have been to hire more people in these markets. But for us,
its more about taking the people who know about the brand best and who are
passionate about it to the markets themselves. If we want to connect with consumers
in LA and San Francisco, we have to be in LA and San Francisco. We have our entire
team out here to build the brand. We even have our finance and operations people out
in the trade actually selling cases, merchandising, attending samplings and being part
of the blitz team.44
The support was provided by Glacau in terms of free samples that were distributed
through Glacau Tasting Vehicles in high traffic locations, DJ events in the local radio
stations, and other in-store activities like tasting and setting up hydrology booths,
where the people operating the booths told the consumers about the merits of
vitaminwater.
The distributor who opened the maximum number of new accounts was declared the
winner, and the best salespeople from the winning distributors team were flown by
Glacau to New York for a holiday. Through this strategy, multi-product distributors,
who had earlier been reluctant to channel their resources to one product, were made to
direct their efforts toward vitaminwater. This resulted in vitaminwater making its way
to several new territories. The fact that the companys employees were also involved
in the competition encouraged the distributors to put in even more effort. The results
were better than expected. According to Bikoff, We went from shipping 1,000 cases
a month to 100,000 a month. 45 With the success of the first Mike-Ro Classic, every
year, Glacau conducted a similar event in different locations.
By 2004, Glacau had identified ten target markets, in which to locate marketing
managers. These markets were New York, San Francisco, Los Angeles, Boston,
Chicago, Detroit, Miami, Philadelphia, Seattle, and Washington. The marketing
managers were responsible for carrying out sampling activities and coordinating
media activities in the area.
44
45
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Strategic Marketing
In April 2005, the Mike-Ro Classic targeted the Midwest and Southern regions in
the US. The southern team was headed by Repole and it conducted the promotional
events in Miami, Tampa, Orlando, and Fort Lauderdale. The Midwest team headed by
Oza conducted the events in Chicago, Minneapolis, Columbus, and Cincinnati. The
employees of Glacau pitched in to extend support to the teams.
Retailers like Dominicks, Kroger, White Hen, Jewel, 7-Eleven, Albertsons, and
Certified Oil participated in the event and extended their support. The event had a
positive effect on sales. In Orlando, 7-Eleven, in order to promote Formula-50, gave a
full tank of gas for 50 cents for the first 50 customers who asked for vitaminwater.
During the promotional event, Glacau opened 1,500 new accounts and sold more
than 50,000 cases of vitaminwater.
Analysts termed the event as grassroots, guerilla marketing. They said Glacau had
been successful in bringing the customers into the retail stores for its product through
this event. It also illustrated the fact that without a huge advertising campaign, small
niche players could create a buzz around the product. By the end of 2005, Glacau had
more than 250 distributors, serving several thousand retailers all across the US.
Bikoff was a firm believer in maintaining the personal touch with distributors. Instead of
a cooler bag, he used his cooler fitted Cadillac Escalade to take Glacau products to the
distributors. This helped him maintain contact with the distributors and small retailers,
who were the ones who helped him break into the market in the initial years. Many
small retailers supported Glacau and refused to sell other products in a similar category.
By 2005, several big and small retailers across the US began selling vitaminwater.
Walgreens started selling the products through its 4,800 outlets spread across the US
in early 2005. In early 2006, Glacau targeted the Middle America market through
beer distributors and other small beverage distributors. By late 2006, vitaminwater
was available all across the US, through 50,000 freestanding branded coolers. From
early 2007, vitaminwater was made available across 5,000 Wal-Mart stores in the US.
Several schools in the US, which were looking for healthy alternatives to colas, opted
for vitaminwater. The demand from the schools was expected to increase further
especially after Alliance for Healthier Generation, a combined initiative of William J.
Clinton Foundation and American Heart Foundation, worked out an arrangement with
the soda makers. As per the arrangement, the vending machines in schools would
provide only low calorie and nutritious beverages.
By mid-2006, Glacau was selling five million bottles a day. The sales through drug
stores increased by 280%, in grocery stores by 100%, and through convenience stores
by 130% as compared to 2005 according to Information Resources 46.
As of 2006, the health and wellness market in the US was valued at US$ 22 billion,
according to Richard Perkal, Senior Managing Director specializing in retail deals in
Bear Stearns Merchant Banking (Refer to Exhibit VIII for a note on health and
wellness market in the US). With several established and new players entering the
market, the competition was increasing day by day. Glacaus competitors included
established players like Pepsi, Coca-Cola, Snapple, and Gatorade and new players like
Vitamin Shoppe, which provided specialized products with low calories. In March
2007, Tropicana planned to launch Fruit squeeze, a combination of water and fruit
juice with just 50 calories.
Exhibit VIII
46
Chicago, US based, Information Resources Inc. is the leading provider of enterprise market
information solutions and services.
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Strategic Marketing
Contd
Beverage manufacturers across the world are looking at providing users something
in addition to refreshment. In 2007, several drinks that would induce weight loss
and contain natural energy and low calories are being launched. In order to take
advantage of the growing demand for energy drinks, Coca-Cola and Pepsi have a
slew of products in the pipeline. In 2007, Pepsi planned to launch more than 12
products which include Pepsi Natura, Sierra Mist Essence, Tava, Tropicana
Essentials, Ocean Spray Refreshers, Lipton pure leaf tea, Propel power packets,
Tropicana Organics, and SoBe Essentials. The products that Coca-Cola planned to
launch include Enviga green tea, H2Odwalla enhanced water, the nutraceutical
version of diet coke, full throttle Blue demon, Respect, and Swiftwater. Other
smaller companies are not far behind; coming from Glacau is vitaminwater Triple
X, and there is Snapples Out of the Blueberry.
Compiled from various sources.
Glacau was looking at consolidating its position in the US market and then
expanding into other markets like Canada, Mexico, and the Caribbean. With its
association with the Tata Group, Glacau was expected to explore other markets in
which Tata had a strong presence like India and the UK in the coming years.
Though vitaminwater was marketed as a drink to promote healthy living, it was still
high on calories with a 20-ounce bottle having 125 calories (12 ounces of Coke had
140 calories). Health experts warned that consumption of enhanced water was not
beneficial. According to Shan James, Physiologist at Duke Health and Fitness Center,
The sugar levels in these drinks can actually inhibit the bodys water- and vitaminabsorption and cause stomach cramping. 47
Analysts felt that the major threat Glacau faced was competition from Pepsi, CocaCola, and Cadbury Schweppes which were entering the enhanced water market. They
opined that these players with their wider reach and distribution network could get
ahead of vitaminwater in no time. Glacau had only around 200 independent
distributors selling its products, and to expand its distribution it would require an
additional investment. In the long run, it could become necessary for Glacau to enter
into an alliance with the distributors of Coca-Cola and Pepsi. The established players
could also challenge Glacau in terms of its price. The long-term sustenance of
Glacau could depend on bringing out new products in different categories and
widening its customer base.
47
Carole Buia, Water, Water Everywhereand Calories Too, Time, August 19, 2002.
250
2.
3.
Karen Herzog, Caffeine Concoctions are the Latest Buzz, JS Online, May 22, 2001.
4.
Laurie Joan Aron, Making Waves in Bottled Water, Crains New York Business,
August 13, 2001.
5.
6.
Carole Buia, Water, Water Everywhereand Calories Too, Time, August 19, 2002.
7.
8.
9.
Christine Y. Chen, Darius Bikoff vs. Coke and Pepsi, Fortune, February 03, 2003.
10.
11.
Kenneth Hein, Energy Fortifies Glacau With Another Coke Alum, Brandweek,
November 17, 2003.
12.
Kenneth Hein, Glacau Puts More into Message, Brandweek, June 28, 2004.
13.
Jonah Bloom, Vitamin Water Thrives with Sampling, Just a Bit of Cheek, Advertising
Age, July 05, 2004.
14.
Vitaminwater Launches Hip New Campaign, Beverage Aisle, August 15, 2004.
15.
Rob Walker, The Way We Live Now: 8-22-04: Consumed; A Spoonful of Attitude,
The New York Times, August 22, 2004.
16.
Michael Applebaum, Brand on the Campaign Trail, Brandweek, November 15, 2004.
17.
18.
Kenneth Hein, Repole Gets a Presidential Nod, Brandweek, February 14, 2005.
19.
Don Longo, Grassroots Blitz Drives Higher Beverage Rings, Convenience Store
News, June 20, 2005.
20.
21.
Don Longo, Reporters Notebook: On the Road, with Super Water, Progressive
Grocer, September 01, 2005.
22.
Kate MacArthur, Pepsi Picks Water Fight with Surging Glaceau, Advertising Age,
October 17, 2005.
23.
24.
Caroline Wilbert, Enhanced Waters Popularity has Many Taking the Plunge, Cox
News Service, December 28, 2005.
25.
Gwendolyn Bounds, Winning Shelf Space in a Competitive Market, The Wall Street
Journal Online, February 01, 2006.
26.
27.
Andrea Foote, Victory for Vitaminwater, Beverage World, June 15, 2006.
28.
Kenneth Hein, Note to Coke: Glacau Biz Plan is Heating Up, Brandweek, August 07,
2006.
251
Strategic Marketing
29.
30.
Glacau
Investment
Means
DSD
www.bevinsights.com, September 2006.
31.
I Made the Brand For Myself: EBI Chief, The Times of India, September 02, 2006.
32.
Pepsi, Energy Brands Settle, SoBe Label to Change, Reuters, September 05, 2006.
33.
Surajeet Das Gupta, Why the Tatas 'Bought a Piece of the Future', Business Standard
September 09, 2006.
34.
Purvita Chatterjee, Testing the Waters, The Hindu Business Line, September 14, 2006.
35.
36.
Homa Mojtabai, Glacau Founder and CEO Shares Tips for Start-up Success, The
Wharton Journal, December 04, 2006.
37.
Kenneth Hein, Pepsi Squeezes out Another Enhanced Water Entry, Brandweek,
February 05, 2007.
38.
Nicole Smith, Metro New York to Run Scent-Strip Insert Ads, www.dmnews.com,
February 15, 2007.
39.
www.glaceau.com.
252
Dividends,
Beverage
Spectrum,