Glaceau- Marketing Vitamin Water

ByRashmi 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)

Aquafina Dasani
Plain Water/ soft Drink

Vitamin water
Enhanced water(Vita mins)

Coke

High on calories (Unhealthy)

Buying Behaviour
Complex buying behavior. CPV(Customer Perceived Value) Total Cost Monetary Cost(H) Time Cost(L) Energy Cost(M) Psychological Cost(L) CPV=Benefit/Cost. CPV=MMHM/HLML CPV is >1 Total Benefit Services Benefit(M) Personnel Benefit(M) Product Benefit(H) Image Benefit(M)

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 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.