Glacéau: Marketing Vitaminwater
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Case Details:
Case Code : MKTG166
Case Length : 18 Pages
Period : 2002-07
Pub Date : 2007
Teaching Note :Not Available Organization : Energy Brands Inc.
Industry : Packaged Water
Countries : US
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Introduction Contd...
Energy Brands, the parent company of Glacéau, was one such company, which
advocated healthy living through low-calorie, low sugar drinks, and
non-carbonated water with additional nutritional supplements. Glacéau's 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, Glacéau's 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.
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In 2005, less than a decade since it began as a small start-up, Glacéau 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, Bikoff's efforts were also
recognized. In 2000, Bikoff was awarded Brandweek's 'Marketers of the Next
Generation' and in 2001, Crain's Weekly named him 'New York's Top
Entrepreneur.' He was among the finalists in Ernst & Young's 'Entrepreneur
of the Year' in 2003.
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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... |
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