Glaceau

Marketing Vitamin water

Submitted By:

Medha Sharma

Rebika

Pratibha Singh

Riaz

Shailesh

Kapila Manocha

 Introduction
•  Glaceau is a product of Energy Brands.

•  Sports cap was unique feature and was available in different

sizes,unusual and unconventional packaging attracted customers.

•  Glaceau product line of enhanced water product comprised Vitamin

water ,smart water & fruit water.

•  Fruit water was available in mint watermelon, pineapple, and guava

•  One of the major challenge was to get the market self as retailers were
not ready to give self space for new product.

•  In 2001 LVMT Moet Hennessy Louid Vuitton made invesment of US

$ 5millon for minority stake.

•  In 2002 coca cola came up with Dasani and pepsi came up with Aquafina,
However neither fared well.

•  By 2005 it was able to sell across 50 states in US and around two million
bottles per day.

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

•  It was priced higher than the other soft drinks, however it defended the
higher price for higher value it provided.

•  It maintained close contact with the customers in order to understand their

taste and preferences.

•  It used packaging as means of communicating with the customers as it

used different names for different flavors.

•  It used celebrities,billboards,interactive sessions and humorous

advertisements and promotional activities to grab attention of the
consumers.
 Promotional Campaign
•  It took Glaceau four years to launch a major ad campaign for which the
company spent US $ 5 million.

•  For the first phase of the campaign, Glaceau allocated a budget of US $ 5
million.

•  The billboards of Vitaminwater 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.

 Distributing Vitamin water
•  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 and going in for a national launch,
Vitamin water was launched in one market at a time.

•  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 marinating a personal touch with distributors.

 Challenges
•  Challenge from some exclusive stores, which provided
specialized products with natural ingredients an lower calories.

•  Tropicana launched fruit squeeze in 2007, with just 50 calories.

•  Health expert warned that consumption of enhanced water is
not beneficial it can cause stomach cramping.

•  Glaceau has only 200 distributors selling its product and to
expand its distribution it would require an additional
investment.

 Segmentation
•  Geographic - Urban , Semi urban

•  Income - Medium to high

•  Lifestyle - Outdoor oriented, Sports Oriented

•  Benefit - Low calories & Enhanced Vitamins

 Target Audience
•  Health conscious people.

 Positioning
Low calories

Plain Water/ Enhanced

soft Drink
Vitamins

High calories

 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 high level of involvement by customer.
 Consumer Attitude

•  TRICOMPONENT ATTITUDE MODEL

•  Cognition

•  Affect

•  Conation
Favorable

Attitude

B A
Vitamin water
High

Low Familiarity

Familiari
C D
ty

Unfavourable
Attitude

 Reference group appeals
•  Celebrities- Britney spears,Madonna,Nicole Kidman

•  Expert

•  Employee spokesperson

 Product Characteristics that
Influence Diffusion
•  Relative Advantage

Adapter Category

•  Innovators

•  Early Adopters

THANK YOU