Glacéau: Marketing Vitaminwater

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…"

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...