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Vitamin Water
Sebastian Czuszel,
Amber Han,
Meric Kelleci,
Mike Staub,
Carrie Zhang
Table of Contents
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Executive Summary
Vitaminwater is a ready-to-drink, brand of stylish, bright, cheerful, and humorous beverages. This
powerful brand has many marketing strengths, particularly strong brand positioning where it
targets a large demographic. The highest use is among consumers ages 18-34, with the
emphasis on the younger age bracket. The consumers select Vitaminwater just as they select
popular brands of clothing. They perceive these drinks as a hip, cool, trendy, and as a lifestyle
beverage.
VitaminWater engages in local and mass promotional activities, which are fun and catchy to
correspond with the overall image of the product. It is marketed and sold in various locations and
very easy to find! VitaminWater provides benefits, both in terms of real and perceived value.
The objective of this marketing plan is to introduce, promote and capture greater market share by
VitaminWater, in both China and the United States in the functional beverage market*.*
The U.S. campaign will target over-50 demographic market, males and females who are currently
neglected in terms of advertising. In The U.S. we will focus on the standardization of product
marketing.
The initial Chinese advertising campaign will target market health conscious consumers (age 1834) who are looking for value added health drink alternatives. In China we will achieve our
marketing objective by adapting our marketing strategy to appeal to local culture.
A wealth of media advertising opportunities-direct mail, event advertising, internet, print, public
relations, sales promotions and TV commercials will be utilized to achieve said marketing goals.
Background Statement
The History of Vitaminwater
• Energy Brands also known as Glaceau is based in Whitestone, New York City.
Founded in May, 1996 by Darius Bikoff.
• Privately owned subsidiary of Coca Cola since June, 2007.
• Manufacturer of flavored beverages: VitaminWater, SmartWater, VitaminEnergy
and FruitWater.
• Initially distributed its products to health food stores and independent retailers in
the New York area.
• The company expanded to nationwide distribution in the early 2000s.
• VitaminWater is company's best selling product. It offers thirteen different flavors.
• Currently, Vitaminwater is a product brand rather than a lifestyle brand.
• Energy Brands has strong brand positioning.
• Utilizes fun and innovative marketing strategy.
Product Analysis:
Attributes, Benefits, and Values
Attributes:
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Low calorie, electrolyte enhanced
Packed with nutrients
Thirteen different flavors currently offered in the United States.
Each beverage has a combination of vitamins (A, B, C, E, Potassium, Zinc,
Antioxidants and many more)
Lower sodium content than it's main competitor Gatorade
Benefits:
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VitaminWater offers a certain amount of nutrients and sugars that are necessary to
re-fuel the body
Vitamins that enrich VitaminWater are essential to daily activities/hydration
Contains the electrolyte potassium, which minimizes fatigue and cramps while
exercising
Bolsters the immune system with necessary vitamins
Values:
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To make the consumer feel trendy, healthy, and energetic
Guilt-free alternative beverage to soda and other sports drinks
Product Analysis:
Past Advertising Analysis
United States
In 2009 Glacéau spent nearly $50 million
on a campaign to promote VitaminWater.
Past Advertising:
• 39 “news” vans dubbed Glaceau Tasting Vehicles
(GTVs) disperse VitaminWater
• In stores, Glaceau sets up “hydrology booths,”
o Supporting material (billboards, ads,
placards)
• Usage of celebrity flavors
• TV commercials during 2009 and 2010 NCAA
college basketball tournament.
• Facebook page
Marketplace Analysis
China
United States
SWOT Analysis
China
United States
U.S. based product
Trendy
Innovative
Niche Market
Strengths
Lack of reliable research
Cultural differences
Localization vs. Standardization of
advertising opportunities
Hard to control distribution of products
Weaknesses
Strong brand recognition
Customer Loyalty
Diversified product base
Celebrity endorsements
Smart advertising - Creative labeling and prints
Easy marketability Predictable trends
Well known competitors and conglomerates
Low variability
Lack of foresight to advertise to a large
over 50 demographic
• Actual sugar content and serving size
per bottle is a concern for many
consumers.
• A few very large corporations control
the industry
• High barriers of entry
SWOT Analysis
China
United States
Opportunities:
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Ability to utilize VitaminWater's relationship
with Coca-Cola to leverage strong brand
name to generate revenues
Improving living standard and urbanization of
China cities
Growing trend for the Chinese to dine out
Low entry barriers
Chinese beverage sector is on the rise
Beverage market is attractive to venture
capitalists
Beverage market is far from being saturated
Opportunities:
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Target mature consumers-baby boomers
(over 50 demographic)
Robust Coca-Cola's distribution channels
Increasing health consciousness would
increase demand for the company’s low
calorie products
Growing Hispanic population in US
Broadening portfolio of products to help
penetrate into new markets
Positive outlook for functional drinks market
Threats:
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Government laws and regulations
Intense competition
Global economic slowdown
Cultural differences
Uncertain advertising market
Political risk
Corruption
Threats:
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Intense competition
Volatile economy could impact sales of the
company’s products
Marketing Objectives and Rationales
Financials
China
United States
Sales Goals
Sales Goals:
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Generate sales of $300M for first year
10% increase for successive years
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Generate sales of $1B
5% increase for successive years
Marketing Objectives and Rationales
Marketing Goals
China
United States