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Marketing Strategy PlanVitaminWater July 28, 2008
Introduction
In 2007, the functional beverage market reached $9.8 billion. From 2002-07, there was an increase inthe market of 30% at current pricing, and 14% after accounting for inflation. These numbers reflect the healthand wellness movement in the United States, as people are now trying to select healthier food and beverageoptions. In 2002-2006, the number of people trying to eat healthier increased by 30 million. Ready-to-drink,functional teas, enhanced bottled water and sports drinks are leading the way with use highest amongconsumers ages 18-34, as well as among households with children. Many of those in this younger age bracketsee these drinks more as a hip, lifestyle beverage.
These consumer select brands of beverages just as theyselect the “in” brands of clothing. Market gains have to do with teens and young adults who flock to theenergy drinks and enhanced waters, as these consumers understand these drinks’ rebellious, taboo and/or trendy images.
Customers are now demanding more from the beverages. Instead of just being thirst quenching, thesedrinks must have other perceived benefits.
Water and vitamins are two essential substances human beingsneed. What if by chance these substances joined forces? And so, Vitamin Water was born. Glaceau emergedin 1996 as a "pioneer of the enhanced water category.” Glaceau developed a line of bottled beverages calledVitamin Water, that combine distilled water with vitamins, herbs, and flavors.
In 2007, Coca-Cola Company purchased Glaceau, for $4.1 billion. Glaceau was attractive to Coca-Cola because of its position in theenhanced water category, which Coca-Cola wanted to enter. Coca-Cola is speculating this industry willcomprise a large portion of the beverage industry's growth in North America through 2010.
” “The strategyfor the makers of Vitamin Water was “to exit after four years, not to go on as long as it has,’ said one sourcefamiliar with the inner workings of the Whitestone, N.Y.-based company”.
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Mintel Reports:Functional Beverages - US - August 2007
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Mintel Reports:RTD Non-carbonated Beverages - US - June 2008
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Mintel Reports:RTD Non-carbonated Beverages - US - June 2008
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http://recipes.howstuffworks.com/vitaminwater.htm
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http://www.foxnews.com/story/0,2933,275386,00.html
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http://www.brandweek.com/bw/news/foodbev/article_display.jsp?vnu_content_id=1002951087
Executive Summary
VitaminWater is a powerful brand that has many strengths in its overall marketing strategy. For one, ithas strong brand positioning where it targets a large demographic???., and claims to work for “celebrities,soccer moms, superheroes, and you”.
It is known as a stylish product with its bright and cheerful colors aswell as its humorous sayings on each bottle. VitaminWater also engages in local and mass promotionalactivities. These are fun and catchy to correspond with the overall brand image. VitaminWater is marketed aswell as sold in multiple locations, so it can easily be found and kept top-of-mind. This “Nutrient enhancedwater” has a lot to offer to its customers,
both in terms of real and perceived value.Although VitaminWater has many positive qualities in its marketing strategy, it is left with somenegative ones, as well. For one, there is only one product line, and it has not yet been expanded upon.Currently, VitaminWater is a product brand, rather than a lifestyle brand. Several line extensions should beevaluated in order to grow the brand, and build consumer loyalty. Its bottles are fun and colorful; however,with its focus on bright pinks and purples, statistics have shown that this drink is purchased by more femalesthan by males. Further, VitaminWater is said to be “a great tasting, natural, low calorie (50 calories per 8 ozserving), nutrient packed enhanced water”.
Little does Glaceau tell customers, though, about the high sugar content. Vitamin Water is marketed “for people who want something healthier than the stuff they’ve beendrinking to meet their needs throughout the day”.
While VitaminWater started out building a strong brand, and has acquired an almost cult following.The questions that remain: How can VitaminWater maintain its market share in an increasing consumer product segment? How, if at all, should VitaminWater expand its current offerings to promote a lifestyle brandversus a single product, fad?
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VitaminWater slide
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