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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The Marketing Strategies

Glacéau's products were priced higher than the other soft drinks, at US$ 1.49 per 20-ounce bottle while Coke was priced at 50 cents. Glacéau targeted consumers who were ready to pay a premium for healthy alternatives to soft drinks. It defended the higher price citing the higher value that the product provided. Energy Foods had always maintained a close contact with the consumers in order to understand their tastes and preferences. According to Rohan Oza (Oza), Senior Vice-president, Marketing, Glacéau, "The insight came from consumers. When you start with the consumer giving you the answer, it's always easier. But you have to spend a lot of time with consumers to do that. Whenever our folks go into stores, we talk to people, talk to retailers, chat with consumers at the shelf…"

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

For the 52-week period ending April 2006, Glacéau vitaminwater was among the top 10 bottled waters in the US, when sales through food, drug, and mass merchandisers was taken into consideration (Refer to Exhibit I for top bottled waters in the US)...

The Road Ahead

With the rising demand for vitaminwater, there were several instances of the products being sold out within no time. At the same time, the company was trying to increase its shelf space among the retailers in the US. Vitaminwater was also facing a challenge from some exclusive stores, which provided specialized products with natural ingredients and lower calories. With the capital infused by the Tata Group, analysts opined that Glacéau would be able to expand its operations further and could consider entering international markets. By 2011, Glacéau was estimated to be a US$ 10 billion company...


Exhibit I: Top Bottled Water Brands (2006)*
Exhibit II: Vitaminwater - Formula 50
Exhibit III: Vitaminwater Flavors
Exhibit IV: Vitaminwater - Labels
Exhibit V: Mediums used for Promoting Vitaminwater
Exhibit VI: Advertisement - OJ Found Guilty
Exhibit VII: Advertisement Featuring Kasey Kahne
Exhibit VIII: Health and Wellness Beverage Industry in the US

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