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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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.



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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.

Marketing Management Case Studies | Case Study in Management, Operations, Strategies, Marketing Management, Case Studies

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.

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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8] Bikoff studied liberal arts and joined his father in his metals business. He began supplying metal cans and containers to several customers including Pepsi, Anheuser-Bush, and Quaker Oats.

9] Vapor distillation involves heating the water to 100oC and applying pressure, through which water is vaporized into oxygen and hydrogen molecules. These molecules are condensed again to obtain water that is free of contamination.

 

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