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Klean Kanteen 1

Olivia Crozier
Dr. Spencer Ross
MGMT-250
Marketing Plan for Klean Kanteen
March 6, 2014






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Executive Summary
Klean Kanteen is a reusable water bottle company that strives to make a product fit for
any user. They have a wide variety of products to satisfy any consumer, based on what sort of
bottle would be most useful for their day to day lives. They also appeal to the consumer by
being a charitable company, by promising that out of all of their gross sales every year, they will
donate 1% of their sales to the 1% For The Planet foundation, and that money will help
non-profit organizations. Though Klean Kanteen has all of these great aspects of their company,
they are not advertised at all; a consumer would have to go on the website to find out any of the
information.
If Klean Kanteen was to take a larger advertising initiative, they could show consumers
how great their product is compared to competitors. They could create print advertisements in
magazines such as People, or any nature magazine, as well as create a 30 second television
commercial to air on a popular network. While creating these advertisements, they need to keep
in mind trying to attract all members of the family. One of their biggest weaknesses is that they
have the products for all members of the family, toddlers to adults, but they do not advertise this.
If they were to create a campaign stating how they wish to have families go green together, it
would draw in a larger groups of consumers, as well as make it easier for them to sell more of
their products.


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The 5 Cs:
Company
Klean Kanteen is a B-Corporation company based out of Chico, California and was
created by Robert Selas, who in 2005, passed the company along to now owners Michelle
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Kalberer and Jeff Cresswell, a brother and sister team. They have worked to keep alive the idea
of having people use stainless steel water bottle and getting away from the plastic. They have
taken the steps to try and give back to the planet by becoming a member of the 1% for the planet
movement, where they promise to give at least 1% of their annual profits to different
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organizations that are working on cleaning up the Earth.


Collaborators
Klean Kanteen is sold both in stores and online. Through these outlets they have many
collaborators due to the fact that they dont have their own boutique stores. Online some of their
biggest collaborators include; REI, Healthy Goods and Sporting Life. For in-store collaborators
they are sold in many small, boutique stores such as local sporting or health food stores. Some
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larger stores include REI and Whole Foods . Klean Kanteen also has many collaborators with
whom they do co-branding with. The co-branding program that they have is a very interesting
way to get their brand out there while instilling their values to a larger population. With this
program, other companies use Klean Kanteen products as a way of advertising either to give
away to employees and supporters or selling them as part of their product line. In co-branding,
Klean Kanteen has the mission of pairing up with companies that have like minded values and

(2013) Klean Kanteen: Our Story. Retrieved from: h ttp://www.kleankanteen.com/about/about-klean.php


(2013) Klean Kanteen: Our Story. Retrieved from: h ttp://www.kleankanteen.com/about/about-klean.php
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(2013) Klean Kanteen: Store Locator. Retrieved From:
http://www.kleankanteen.com/locator/results_list.php?showonly=US&tab=US&zip=02215&distance=10&state=&city=&name=

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missions. Some corporations that have decided to co-brand with Klean Kanteen include;
Facebook, Clif Bar, Quick Silver, 1% For The Planet, Patagonia, North Face, Red Bull, I <3
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Boobies, NBC, Polartec .


Customers
Klean Kanteen has products that relate to all member of the family. From baby bottle, to
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a large 64 oz water canister, they cater to the needs to everyone . In terms of their market size,
they are sold online on their retail site, kleankanteen.com, but also at retailers like REI, Whole
Foods, and Green Depot and also on large retail outlets like Amazon.com. They seem to appeal
to people who lead an adventurous outdoor lifestyle when they really could cater to anyone who
would like to take a step in going green.
Competitors
Being that going green is a huge fad that many people are starting to follow, there are
multiple brands of reusable water bottles that are in the market. Different water bottles offer
different features and it is up to the consumer to decide what sort of aspects they look for in their
water bottles. Klean Kanteen provides customers with a stainless steel water bottle that comes in
multiple sizes, colors, and different tops bases on a customer preference. For example, a
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Camelbak had a straw that you can interchange with different colors , and a Sip n Go folds up
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after it is empty for easy transportation . Some examples of competitors include Camelbak, REI,
LL Bean, Sip n Go, Polar Water Bottle, and Nalgene.
Climate/Context

(2013) Klean Kanteen: CoBrand. Retrieved from: http://www.kleankanteen.com/cobrand/examples.php


(2013). Klean Kanteen: Products. Retrieved from http://www.kleankanteen.com/products/klean-kanteens.php
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(2014). CamelBak: Products. Retrieved from: http://shop.camelbak.com/bottles/water-bottles/everyday-use-outdoor/l/201
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(2014) Sip N Go: Products Retrieved from: http://www.buysipngo.com/collections/frontpage
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When looking at customer taste, it depends on the preference of the consumer and what
they look for when they purchase a reusable water bottle. Customers have multiple options for
customizing their water bottle, including the size of the bottle, the type of material and also the
type of nozzle. For this reason, it can be said that Klean Kanteen is stable in their market
because they offer a wide variety of products that cater to a wide customer basis. Out of many of
their well-known competitors, they are one of the only companies that offer a stainless steel
bottle which can be prefered by consumers. Due to the fact that the idea of going green and
being eco-friendly has swept many markets, they appeal to many different consumers tastes
because they offer products to multiple age groups.
Porters Five Forces:
Bargaining Power of Buyers
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Klean Kanteens prices for bottles range between $18-$33 therefore the buyer has high
bargaining power because if they find the price too high they could find another water bottle that
is cheaper. Although consumers can purchase a plastic water bottle such as Camelbak or Nalgene
it will not last as long as Klean Kanteen which makes their products out of stainless steel. Klean
Kanteen advertises their products for being sustainable and a good investment. There is also a
higher volume of reusable water bottles on the market which means that there are lower
switching costs because reusable water bottles have become a commodity. It is Klean Kanteens
responsibility to differentiate their product from other reusable water bottles which can in turn
raise their switching costs.
Bargaining Power of Suppliers
Klean Kanteens supplier is a factory in China; this manufacturing site only makes
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(2013). Klean Kanteen: Products. Retrieved from http://www.kleankanteen.com/products/klean-kanteens.php

Klean Kanteen 6
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products for Klean Kanteen. Therefore the bargaining power of suppliers can vary. Klean
Kanteen has the ability to find a new manufacturer if they are unsatisfied with their current
supplier; this is an example of the supplier having low bargaining power because they are
manufacturing only for Klean Kanteen. Klean Kanteen has a specific agreement and relationship
with their supplier due to the high quality and eco-friendly standards. This type of relationship
could give more bargaining power to the supplier because their factory is very specific to the
companys standards and it would be more difficult for Klean Kanteen to create a similar type of
relationship with a new supplier. The factory itself already has high quality standards compared
to many other factories in the same province that produce steel. This attribute makes the Klean
Kanteen factory a competitive place to work because Klean Kanteen requires safe, healthy
working conditions and fair labor. Klean Kanteen always has an employee for the company on
site as well as multiple visits from other Klean Kanteen employees for check ups and
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evaluations. Klean Kanteen can have an advantage over its supplier because of the limited job
openings and their constant on-site presence to maintain quality standards. If Klean Kanteens
begins to slack in quality and fair labor then the supplier has more bargaining power because
they are able to strike, not produce the same quality products or limit the factorys output. This
appears unlikely to happen since Klean Kanteen has more control over the manufacturing site
and therefore its supplier.
Threat of New Entrants
There is a moderate to high threat of new entrants in the reusable water bottle industry.
Due to the current sustainability and environmental initiatives this is both a popular and

(2013). Klean Kanteen: Responsibly Made. Retrieved from http://www.kleankanteen.com/about/responsibly-made.php


(2013). Klean Kanteen: Responsibly Made. Retrieved from http://www.kleankanteen.com/about/responsibly-made.php

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Klean Kanteen 7
profitable market. As companies such as Vapur, Waterweeks, and EcoUsable discover this
profitable market, profitability for all will eventually decrease. Klean Kanteen must establish
itself as one of the dominant players in the market in order to discourage new companies from
entering the market. They have differentiated themselves with their wide range of water bottles
and the fact that they are made from stainless steel and have been in the industry for a longer
time period gives them an advantage. They have also branded themselves as an environmentally
friendly company by participating in the California Business Alliance for a Green Economy, a
community of businesses promoting the use of renewable energy and are members of 1% for
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the Planet, a non-for-profit involved in environmental stewardship.


Threat of Substitute Products
There are a number of companies that offer reusable water bottles that are similar in
quality and price. Another substitute product could also be bottled water from companies such
as Poland Springs, Evian, and Aquafina. Klean Kanteen does offer a higher quality product
since their bottles are made from stainless steel and they are a renowned brand in the reusable
water bottle industry. Consumers who do not mind the change from stainless steel to plastic
without harmful chemicals would be more likely to switch to Klean Kanteen water bottles.
Those who are environmentally conscious will also opt for reusable water bottles since U.S.
landfills are overflowing with 2 million tons of water bottles and it takes over 1.5 million
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barrels of oil to manufacture them. By manufacturing stainless steel bottles Klean Kanteen
ensures that no harmful chemicals found in plastic water bottles such as BPA, polycarbonate, and
PVC. The 18/8 steel used in their bottles is ensured to be safe for food contact and consists of

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Sustainability. Klean Kanteen. 2014. Web. April 2014.<http://www.kleankanteen.com/about/sustainability.php>


(2014) Bottled Water is Wasteful, The Water Project, Retrieved from http://thewaterproject.org/bottled_water_wasteful

Klean Kanteen 8
metals that safe and nontoxic. However, there are other reusable water bottle brands such as the
Swiss brand Sigg that have been manufacturing similar types of water bottles, such as aluminum
water bottles, since 1908 versus Klean Kanteen which entered the market in 2004. Aluminum
water bottles can be another substitute because they are lighter and more aesth
Rivalry Among Existing Firms
Klean Kanteen advertises a reusable stainless steel, BPA Free water bottle whereas
Nalgene and Camelbak are plastic but also BPA Free. Nalgene is a company that has been
producing bottles longer than Klean Kanteen and therefore have a larger, possibly more loyal
customer base. Klean Kanteen must advertise how they are different from other reusable water
bottles in order to raise their switching costs. Klean Kanteens largest threat is the fact that there
are multiple, equally balanced competitors. L.L. Bean produces their own brand of bottles that
come in a variety of shapes, sizes, functions and materials. L.L. Bean also sells Camelbaks and
Nalgene bottles. Klean Kanteen is more vulnerable to slow industry growth due to the multiple
competitors. The threat of rivalry among existing firms is prevalent due to equally balanced
competitors, a lack of differentiation and slow industry growth.

SWOT Analysis
Strengths: Klean Kanteen produces stainless steel products that people can refill instead
of reusing plastic bottles which was found to be harmful to peoples health. By refilling Klean
Kanteen products instead of frequently buying bottled water, the products save people money.
Klean Kanteen produces products for all ages so they have a large target market. They sell a
wide variety of the stainless steel products from baby bottles and sippy cups to different types of

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food canisters and water bottles to accessories for their products. Klean Kanteens are very easy
to clean as opposed to their competitors such as CamelBak. CamelBak water bottles have a long
straw that often times gets moldy easily because they are difficult to clean and keep up with.
Klean Kanteens do not have any type of straw, they simply have different tops that you can
choose from in which you can easily clean by hand or clean in the dishwasher. Klean Kanteen
water bottles have wide-mouth openings so that consumers can easily clean them and also fit ice
cubes into them.
Weaknesses: Distribution is one of Klean Kanteens weaknesses. If they broaden their
distribution to more well-known sporting goods stores then they will reach a larger market.
Klean Kanteens biggest weakness is their lack of advertising. Whether it be commercials or
print advertisements, Klean Kanteen has hardly any advertisements. They do have some print
advertisements, but they should focus on putting more out there. Klean Kanteen could make
attractive print advertisements because of the many different bright color options that they offer.
The advertisements have the potential to be appealing to the eye of everyone, children and
adults. Klean Kanteen does not have any commercials. This is something holding them back
because they have the potential to make a very successful commercial because of their large
target market and their large array of products. They could have a variety of commercials
targeting different audiences from people who are interested in extreme outdoor activities to
families that like to go camping on the weekends.
Opportunities: Klean Kanteen has the opportunity to better advertise and promote their
product. They can produce more print advertisements and also create commercials. Commercials
are a huge opportunity for the company because they wouldnt have a lot of competition with

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other water bottles and container companies because commercials arent particularly popular
with those types of products. Klean Kanteen promotes their products at events such as music
festivals, but they should also try to promote at events such as marathons and triathlons. They
have the opportunity to influence people to better their health and the environment by reducing
the use of plastic bottles and switching to reusable stainless steel containers. An opportunity they
have as far as their website is creating a way in which people can customize their own Klean
Kanteen products.
Threats: Many people already have reusable containers that they use and they dont feel
the need to go out and buy new ones. All companies that put beverages into plastic containers
can be considered a threat to Klean Kanteen. Competing brands and those companies that have
been around longer and are more well-known are a threat to the company. Brands such as
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Nalgene , CamelBak , and L.L.Bean have customers loyal to their brand that arent likely to
switch to using Klean Kanteen products.

Marketing Strategy and Tactics

Target Market
The most appropriate target market for this product is outdoor athletes and family units.
Klean Kanteen makes a variety of different reusable stainless steel products from baby bottles to
large water bottles. The idea that you get from visiting their website is that they have something

Nalgene: Products. Retrieved from: http://store.nalgene.com/SearchResults.asp?Cat=3


(2014). CamelBak: Products. Retrieved from: http://shop.camelbak.com/bottles/water-bottles/everyday-use-outdoor/l/201
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L.L.Bean: Water Bottles & Carriers. Retrieved from: http://www.llbean.com/llb/shop/506835?nav=gnro-hp
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for every member of the family. The website also shows pictures of families using the products
while doing activities together. They also target outdoor athletes. Again, they show many
pictures of athletes using the products outdoors. Its important to athletes to have a good quality
water bottle that they can reuse safely without worrying about the repercussions that a plastic
water bottle may lead to. Klean Kanteens are also extremely durable because of the material they
are made from. Many people choose to drink from glass over plastic, but the problem with glass
is that its not durable. When doing outdoor activities such as hiking, if a Klean Kanteen is
dropped it wont shatter like glass or crack like a plastic Nalgene bottle. The diverse product
options make family units a specific target market whereas the particular make and material of
the bottles make athletes a target.

Positioning
Klean Kanteen products are mainly sold in stores that bring in the upper-middle class
such as REI and Whole Foods. Since they are developing products that are safer for people to use
and can ultimately save people money they should broaden their distribution and sell their
products in stores such as Dicks Sporting Goods and Sports Authority to target a larger market.
Parents are constantly looking for safer options for their children in every aspect. If Klean
Kanteens were sold in more popular and well-known sporting goods stores then parents will
choose to buy children a reusable water bottle for school, sports, after school activities, etc.
because they are a good alternative to plastic water bottles. By only selling Klean Kanteens in
stores targeting the upper-middle class the company is blocking themselves off from a whole
other market that they could reach.

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Differentiation
Klean Kanteen is an eco-friendly brand and their products are BPA free. While being
eco-friendly, going green, and reducing waste are all trending in society right now it puts Klean
Kanteen above other brands because they have such a strong eco-friendly brand identity. The
most unique quality that Klean Kanteen has is the material used to make the products. Stainless
steel is a material that is not generally used to make reusable containers. Many people choose to
use reusable hard plastic and glass water bottles, but stainless steel is more durable than both of
those materials. The products can be used by children and extreme athletes and when theyre
dropped and thrown around they wont break like other reusable products. Klean Kanteen is also
different than their competitors because they sell products for babies, children, and adults which
is appealing to people because they have the option of buying products for their whole family at
one time.

Marketing Plan
Klean Kanteen has a variety of products including various size stainless steel water
bottles, cups and tumblers, food canisters, insulated mugs, baby bottles, sippy cups, childrens
sport water bottles and accessories. Their extensive product line makes their products widely
relevant and accessible. The classic water bottles come in three different sizes, diverse designs,
as well as being accessible in a variety of settings such as hiking, playing sports or simply
needing something to drink. Klean Kanteens wide-mouthed water bottles are similar to their
classic water bottles in terms of designs and accessibility but the wide mouth allows for larger

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ice cubes to fit as well as a water bottle that can hold more fluid ounces. This type of water bottle
is more geared towards those who have a more active lifestyle. Another product Klean Kanteen
offers are their cups and tumblers which are a durable alternative to using plastic or glass cups.
Each of these products can hold a variety of drinks from water to juice to tea and coffee. They
are also made for everyday use but in a more casual setting rather than outdoors. Similar to their
tumblers, Klean Kanteens insulated mugs can keep drinks hot or cold for hours at a time. The
insulated mugs are more travel friendly and targeted towards outdoor activities as well as
everyday use. Klean Kanteens food canisters are a product that can be used as food transport for
work, school or play. Their canisters are insulated, vacuum sealed, and leak proof in order to
maintain freshness while not retaining old flavors. Klean Kanteen also has a line of baby and
childrens products ranging from baby bottles, sippy cups and childrens sport water bottles.
Each of these products are travel-friendly, toxin-free and are crafted to withstand a teething baby
or an active, rambunctious child. In order to accommodate a variety of customers, Klean Kanteen
has accessories that are easily interchangeable between products. Their accessories include
different lids, caps, cozies, and travel accessories such as slings, carabiners, bags and bike cages.
Klean Kanteens products are all stainless steel, reusable, BPA free, and have easy to clean
features such as rounded interior corners. All of Klean Kanteens products offer a lifetime
warranty as well as return/replacement warranty for manufacturer defects. Each of these features
provides a variety of benefits to their customers (Appendix).

Product Changes

Klean Kanteen does not need to make any product changes within the coming year.

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Klean Kanteens products are of a high quality that is widely accessible to athletes as well as
each member of the family. Rather Klean Kanteen should focus on advertising their product in
order to gain a wider consumer base.
Pricing Strategy

Klean Kanteens product prices can range from $18 to $100 depending on the type of

product being purchased and whether or not the product is being purchased in a pack. Their
products are mainly sold directly and shipped throughout the country or are sold in specialty
athletic stores such as REI. The pricing of their products and where they are selling them target
an upper middle class consumer. Klean Kanteens water bottles are more expensive compared to
their competitors such as Nalgene and Camelbak. Although Klean Kanteen is more expensive
than competitors, the quality, sustainability and benefits of their products are of more perceived
value than their competitors. For Klean Kanteens current target market their price is appropriate
but with more competitors and a higher potential for substitutes in the market we suggest that
Klean Kanteen lower their prices and sell their products at larger sports retailers such as Dicks
Sporting Goods or Sports Authority. By lowering the price to be equal or even lower to
competitors such as Camelbak and Nalgene, this could lead to Klean Kanteen increasing their
consumer base. Since Klean Kanteen has a wide variety of products they could begin a price
reduction with their classic water bottles since those are their most commonly purchased
products. Klean Kanteen water bottles prices currently range from $18-$33. By lowering their
prices of their water bottles by two or more dollars Klean Kanteen will be equal and in some
cases lower priced compared to their competitors while offering a higher quality product. The
lower price of their water bottles will also make their product more appealing to larger retailers

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such as Dicks Sporting Goods and Sports Authority. Both of these retailers target athletes and
outdoor enthusiasts but they also attract a wide variety of consumers that are not athletes and
customers who are seeking quality athletic products at a lower price compared to other stores
such as REI. By expanding into more well-known retailers Klean Kanteen can expand their
consumer base and attract more customers to their online website and other products that can
maintain their original price. Lowering the price of their water bottles will allow for Klean
Kanteen to distribute their product more widely through retailers and attract more customers to
their company and the various other products Klean Kanteen has to offer
Distribution Strategy

Klean Kanteen is based in California and their manufacturer is in China. Currently Klean

Kanteen ships in the United States, Canada and Internationally. Within the United States
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shipping can take between one and seven days depending on the location. The closer the
purchase is to California the less time it will take for the individual customer to receive their
product. Within Canada and Internationally it is more difficult for Klean Kanteen to ship outside
of the country and therefore rely on nearby retailers and distributors. Klean Kanteen has online
partners such as REI, reuseit, Healthy Goods, Sporting Life and Gone Shopping; all of these
companies are based in the United States with most of Klean Kanteens products being sold only
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online. Klean Kanteen has international distributors to cater to an international, eco-friendly


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community. Rather than focus on expanding internationally, Klean Kanteen should expand
within the United States and possibly Canada. This expansion should focus on increasing
retailers and distributors with more intensive distribution. Currently Klean Kanteen is selective

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(2013) Klean Kanteen: Shipping and Handling. Retrieved from http://www.kleankanteen.com/customer/shipping.php


(2013) Klean Kanteen: Online Partners. Retrieved from http://www.kleankanteen.com/locator/results_list.php?is_online=1&order_by=city
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(2013) Klean Kanteen: Distributors. Retrieved from http://www.kleankanteen.com/retailers/kanteen-distributors.php
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in their distribution through lesser known, specialty companies. For example REI is targeted
towards outdoors enthusiasts that are upper middle class; Healthy Goods is an organic medicine
company. Klean Kanteen can implement an intensive distribution by selling their products
through well-known realtors such as Dicks Sporting Goods or Sports Authority.

The most efficient distribution strategies include a direct channel and an indirect channel

through a retailer. Currently Klean Kanteen is using both of these channels but needs to be more
intensive in both their direct and indirect channels. For their direct channel Klean Kanteen is
selling their products directly to their consumers through their online website. The internet is an
effective channel in order to reach multiple market segments. A method that Klean Kanteen can
adopt in order to expand their direct channeling could be through catalogs. Similar to LLBean,
Klean Kanteens catalogs will be directed towards consumers that frequently buy their products.
Klean Kanteen should focus on expanding their catalogs to outdoor enthusiasts as well as
families who would be interested in purchasing multiple eco-friendly products that suit each
member of their family. In order to implement the catalog, Klean Kanteen will need to allocate
resources to mail out a catalog that also has a low impact on the environment. The catalog should
only be distributed to customers who register online therefore Klean Kanteen has an exact
number of consumers who are interested in the catalog. The catalog can lead to one time buyers
become long time customers for Klean Kanteen. Currently Klean Kanteen uses an indirect retail
channel in order to increase their market segments yet their retailers are targeted towards upper
middle class consumers and are lesser known. Klean Kanteen can expand their retail distributors
to more well-known retailers and therefore target both upper and lower middle class consumers.
In order to expand their retailer distributors Klean Kanteen must revise the price of their water

Klean Kanteen 17
bottles to cater towards the types of consumers more well-known athletic and health enthusiast
retailers. (Appendix)
Marketing Communications Strategy
In order for Klean Kanteen to communicate information about its products to the targeted
market is for it requires a marketing communications strategy. A marketing communications
strategy will allow for the delivering of an integrated message to potential consumers across all
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channels in a [given] brands arsenal. In this age where the Internet and social media has
expanded our methods of communicating with each other consumers both want and expect
information to be readily available for their desired brands both online and offline. By
developing an effective strategy Klean Kanteen will be able to provide information to its
consumers, provide a convenient and positive experience, and promote the brand itself.
The budget will include all components that are necessary to create, implement, and
maintain the marketing communications strategy. In order to create the strategy employees of
certain skills that include marketing consultants as well as social media and web developers will
be needed. This means a part of the budget will have to be spent on hiring and paying employees
with these skills. Expenses will also be incurred in the process of making the ads and mobile
apps for Klean Kanteen. In order to budget the marketing plan funds must be allocated to the
different aspects of integrated marketing. Since the market is constantly changing the budget
will be influenced by changes in technology, consumer attitudes and behaviors, and competitors
strategies. Klean Kanteens brand focus is also influential as well as consumer experience.

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(2013). Olenski, S. Why Integrated Marketing Communications Is More Important Than Ever. Forbes. Retrieved from:
http://www.forbes.com/sites/steveolenski/2013/09/16/why-integrated-marketing-communications-is-more-important-than-ever/

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The media that highly recommend is the Internet. Other modes of communication that I
would also recommend are direct mail and some broadcasting. However, the Internet is the most
efficient mode since the information can be communicated through so many different platforms
and take on a variety of forms. They can include video on streaming websites such as YouTube,
ads on Facebook user feeds, and being accessible through Google and other popular search
engines. Another opportunity for Klean Kanteen to promote their brand would be at
environmental and sustainability conferences and festival. These communication tools will
ensure Klean Kanteen utilizes direct marketing, advertising, and online communications.
Trade-oriented sales promotions will be useful promotional tools that will support both
Klean Kanteens advertising and personal selling that is directed to wholesalers, retailers, and
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distributors. For trade and sales promotion plans there are three common approaches that can
be beneficial: allowances and discounts, cooperative advertising, and training of distributors
sales force. For allowances and discounts prices are reduced, reimbursing a retailer for extra
in-store support or special featuring of a brand, discounts on shipping for cases, and coverage for
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financial costs and losses associated with consumer sales promotions. Cooperative advertising
includes advertising programs where a manufacturer pays a percentage of the retailers local
advertising expense for advertising the manufacturers own products. Klean Kanteen can do this
by actively advertising the stainless steel that they receive from manufacturers to their
consumers. With training the distributers salesforce Klean Kanteens intermediaries will be
more knowledgeable about their products and business practices. This will increase sales as well
as result in the manufacturers success.

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(2011). Kerin, E. Hartley, S. Marketing: The Core. New York, NY: McGraw-Hill Irwin.
(2011). Kerin, E. Hartley, S. Marketing: The Core. New York, NY: McGraw-Hill Irwin.

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Klean Kanteens public relations strategy must spread awareness of their water bottles as
well as other products through a successful press release. It should promote the uniqueness of
the product, help reach the target market objectives, and engage potential consumers about the
products benefits. Public relations will be able to relay the information to the public and build
public interest in Klean Kanteens products. An efficient strategy will include publicity events,
speaking opportunities, video/audio new press releases, blogs, social media, and other modes of
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outbound communication to press members.


There are four main objectives that Klean Kanteen must satisfy in order to successfully
target their market. The first is to retain goodwill and they are capable of this due to all of the
sustainable and social initiatives they have taken in order to exercise corporate social
responsibility. The second is to take actions in order to benefit both the public interest and the
company itself; this can easily be done since Klean Kanteen is offering a high-quality,
sustainable water bottle that will both help consumers to not invest in plastic water bottles as
well as fit into the going green trend that has benefited so many companies. The third is to
identify and communicate to varying points of view and needs of well-defined target markets.
Lastly, Klean Kanteens public relations strategy must consist of a plan that describes actions
that lead to well-defined goals, task and role descriptions for administrators, and offer
opportunities for stakeholders to build relationships. Additionally, the plan must contain
benchmarks as references to indicate overall progress and whether desired goals have been
23

achieved.

22

(2014). Kerin, E. Hartley, S. Marketing: The Core. New York, NY: McGraw-Hill Irwin. Retrieved from:
https://www.boundless.com/marketing/integrated-marketing-communication/the-promotion-mix/public-relations/
23
(2014). Kerin, E. Hartley, S. Marketing: The Core. New York, NY: McGraw-Hill Irwin. Retrieved from:
https://www.boundless.com/marketing/integrated-marketing-communication/the-promotion-mix/public-relations/

Klean Kanteen 20
Financial Impact:
Klean Kanteen has had tremendous growth over the last 8 years, growing from just under
$1 million in revenues from 2006 to $2.5 million just a year later. In 2007-2008 Klean Kanteen
began to focus more heavily on their PR and their R&D, this increased their revenues at an
24

astronomical amount to about $18 million in 2008 . This 620% increase in revenues was a result
of both the expansion of their product line as well as an increase in the amount of events they
25

sponsored and their partnership with 1% for The Planet. They already have the product line and
the exposure to a large percentage of consumers in their target market. What we are suggesting is
that they focus their resources on gaining the consumers who are unaware of their products.
Their products have come a long way since they began, they have a huge selection that now
ranges in use from extreme sports to a picnic in the park with a young child. They have done a
great job of expanding their products to meet a new and larger market, but they have not
expanded their promotion at nearly the same rate.
Looking at competitors we assume that Klean Kanteens revenue for 2013 was about $50
million, taking into account assumptions about numbers from 2008 being in a recession in
26

addition to the huge expansion in their product line and co-branding that they have done since .
For cost of the campaign we decided to do it as a percentage of revenue tactic. Using this
27

business tend to allocate between 2%-9% of total revenue to their marketing campaigns .
Seeing as how Klean Kanteen is a relatively small company with little exposure, we decided to
allocate 5% or $2.5 million dollars to this campaign. By implementing this plan we predict that

24

http://content.time.com/time/specials/2007/article/0,28804,1706699_1707550_1840603,00.html
http://www.kleankanteen.com/news/press-releases.php
26
http://www.sec.gov/Archives/edgar/data/1345122/000119312511290107/d245637dex991.htm
27
http://www.legalzoom.com/business-management/promoting-your-business/cost-marketing-what-is
25

Klean Kanteen 21
they will have and increase of sales of about $10 million in their first year alone, resulting in a
return of 200% on the initial investment (10-2.5= 7.5 (7.5-2.5)/2.5=2).
Success Metrics:
We plan to monitor Klean Kanteens success through various business metrics. In order
to track and make sense of our data we will use the following metrics: customer
feedback/satisfaction, employee satisfaction, sales productivity, cash flow, and the gross margin.
28


Klean Kanteen depends on satisfied customers in order to spread awareness of their water

bottles as well as to generate sales. A wider range of customers from different markets who
provide positive feedback and who are ultimately satisfied with their purchased product will be
29

an indicator that the company is successful. The feedback should provide both qualitative and
quantitative information.
Employee satisfaction is another metric that will be useful in monitoring Klan Kanteens
overall productivity. Satisfied employees contribute to efficient internal productivity as well as a
organized business infrastructure that is utilized more efficiently.
Sales productivity will provide a measure of whether the product is actually selling or is
stagnant on shelves. Although there is no direct method to measure sales productivity there are a
number of factors that can help determine whether sales are increasing or decreasing. These
factors can include the cost of business operations and the existing market conditions. If the cost
of doing business is greater than the inflow of profit it is an indicator that Klean Kanteen is
28

(2014) Five Performance Metrics: Key to Successful Business Operations. Suchitra Mishra Blog: WordPress. Retrieved from:
http://blogbysuchitra.wordpress.com/2012/03/18/five-performance-metrics-key-to-successful-business-operations/

29
(2014). Kelley, P. from Demand Media. What Components are Used to Measure Sales Productivity? Chron. Retrieved from:
http://smallbusiness.chron.com/components-used-measure-sales-productivity-25924.html

Klean Kanteen 22
generating sales but not revenue. The market conditions will also provide a forecast of how
Klean Kanteens products are doing compared to competitors and will generate information that
will ensure whether the company is being profitable or whether it needs to align its strategies
30

with a changing marketplace.


The cash flow and the gross margin are both quantitative metrics that will provide
valuable information on its management performance. The cash flow includes the companys
DSO and DPO. The DSO is known as the average number of days it takes for a company to
collect its accounts receivable or payments outstanding. The DPO aims to give the number of
31

days it takes a company to pay its creditors and vendors. These two management performance
factors reveal whether Klean Kanteens profits are enough to cover all debts and expenses it has
incurred while doing business. Gross margin, also known as the gross profit margin, is useful
because it measures how much money is made after direct costs of sales have been taken into
32

33

account. There are also other many measures when it comes to analyzing profitability.




30

(2014). Johnson, Bill. How Do You Measure Sales Productivity? Salesvue. Retrieved from:
http://salesvue.com/how-do-you-measure-sales-productivity/
31
(2014) Five Performance Metrics: Key to Successful Business Operations. Suchitra Mishra Blog: Word Press. Retrieved from:
http://blogbysuchitra.wordpress.com/2012/03/18/five-performance-metrics-key-to-successful-business-operations/

32
(2014). Johnson, Bill. How Do You Measure Sales Productivity? Salesvue. Retrieved from:
http://salesvue.com/how-do-you-measure-sales-productivity/
33
Board of Trade of Metropolitan Montreal. Measure Performance and Set Targets. Info Entrepreneurs. Web. 12 April 2014. Retrieved from:
http://www.infoentrepreneurs.org/en/guides/measure-performance-and-set-targets/

Klean Kanteen 23
Appendix A

Klean Kanteen

Nalgene

Camelbak

Product
Description/Features

Stainless steel
reusable products

Hard plastic water


bottles

Hard plastic water


bottles

Target Market

Family units and


outdoor athletes

Athletes

Outdoor athletes

Positioning Strategy

Upper-middle class
stores

Well-known sporting Upper-middle class


goods stores
stores

Product Benefits

Safe reusable and


durable material

Reusable

Reusable

Distribution

Minimal distribution

Broad distribution

Minimal distribution

Pricing

Somewhat expensive Somewhat


inexpensive

Somewhat
inexpensive

Promotion

Little promotion

Little promotion

Little promotion

Other Strengths

Variety of products

Well-known product Well-known product

Other Weaknesses

Lack of advertising
and promotion

Lack of durability
and uniqueness

Lack of durability
and hard to clean
mouthpiece and straw

Klean Kanteen 24
Appendix B

Klean Kanteens product features and consumer benefits
Feature

Benefit

18/8 Food Grade Stainless Steel

Durable metal that contains no harmful


chemicals or toxins

BPA Free

No risk of consuming harmful chemicals or


toxins

Rounded Interior Corners

Easy to clean, less chance for bacterial


growth

Wide Mouth Opening

Easy to clean, fit ice cubes into the bottle

Non-Toxic Paint

No exposure to harmful chemicals or


toxins, safe for babies and children if
chewed on

Vacuum Insulation

Provides fresh-tasting food and beverages

Diverse Range of sizes (i.e. 8 oz 64 oz)

Travel friendly and accommodates many


settings

Electro-polished Interiors

The flavors from the content in the product


wont remain

Lifetime Warranty

Emphasizes product durability, high value


product

Return/Replacement Warranty

Emphasis on providing the best product for


the customer

Klean Kanteen 25


Appendix C
Klean Kanteen Channel Distribution Strategy
Direct Distribution Channel Indirect Retailer Distribution Channel

Klean Kanteen 26




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Klean Kanteen 27
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Klean Kanteen 28
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