Marketing Mix Strategies

(Vitaminwater Brand)
Target Market
 Segmentation Strategies
Psychographic Strivers Strivers
Strivers are motivated by
This is a good segment for
achievement and
Vitaminwater to target because
emulate the purchases of
these consumers are impulsive
people with greater
buyers with limited incomes.
wealth. (Strivers)

Vitaminwater attracts this They will be less likely to

group by using compare prices and more
advertisements featuring willing to pay a premium for
famous entertainers. a drink endorsed by someone
they admire.
For example, in the
recent Hydrate the They do not have the resources
Hustle campaign, Kevin to purchase luxury goods, but
Heart discusses his rise Vitmainwater can serve as an
from a shoe store affordable luxury. (Strivers)
employee to rich and
famous comedian. (Make)
 Targeting Strategies http://hatchsf.com/news.html
http
pad

Differentiated Strivers Strivers ls_b

5/he
ml
Though the primary Vitaminwater divides its Striver market into different
target market is categories targeted with different advertisement campaigns.

Athletes
comprised solely of Two major categories are Athletic and Hip-Hop Oriented
Strivers, Vitaminwater campaigns.
uses differentiated
Athletes
targeting strategy
In Vitmainwaters advertisements directed toward athletes,
within the group.
famous athletes are shown with the slogan it works.
The focus on the athletic benefits from Vitaminwater including:
Quenched thirst
This targeting strategy

Hip-Hop Culture
Increased performance
is useful because it
Increased health
allows Vitaminwater
to attract more
Hip-Hop Culture
customers based of
These advertisements focus less on the physical benefits
different celebrities
Vitaminwater can provide and more on how Vitaminwater will
they admire.
make you look. For example, one campaign used the slogan
Ride Like 50, implying that Vitaminwater will make you more
like 50 cent, a prominent Hip-Hop artist.
 Diffusion of Innovation Theory http
pad
Late Majority ls_b
5/he
ml
Vitaminwater is easy to access. It can be
found in markets, gas stations, stores,
vending machines, etc.

Many have tried the product and there is no

longer any risk attached.

Vitaminwater is already extremely

profitable because the Early Majority has
already entered the market. (see BCG
Matrix)

Vitaminwater is in the Maturity Stage.

(see Product Life Cycle)
The External Environment
 BCG Matrix
Cash Cow

Market Share Market Growth Rate

$662,929,300 Market Share dropped
profits in 2013 9.48% in 2013
If the Coca-Cola is not careful and allows its share to
continue to drop, the product could become a DOG.

The company is already taking steps to prevent this by

responding to Social and Cultural Trends.
 Social Trends
Health & Wellness
Organic beverages
were among the fastest
growing categories in the US
health and wellness market
in 2013.
(Stevia)

Coca-Cola The effectiveness of this change cannot be determined

responded to this for 2014
by replacing all of the sugar
Vitaminwater with Stevia, a
plant-based sweetener.
until the profits for 2014 are released in January.
However, the health and wellness trend has continued
throughout 2014 and it is likely that this change will
prove beneficial.
 Main Competitors
Sparkling Ice Nestl Pure Life Splash SoBe Life Water
Flavored, vitamin enhanced Flavored bottled water; 5 flavors Flavored, vitamin enhanced
Product water; 11 flavors water; 20+ flavors

Print advertising; social media Print advertising; social media Print advertisements (health
Promotion (Twitter, Instagram (Twitter) magazines); social media (Twitter,
Instagram)
Premium Pricing Value Value
Pricing
Markets, Gas Stations, Markets, superstores; Global Markets, superstores; Global
Place superstores); United States

http://www.gayot.com/lifestyle/health/features/water/enhanc
ed_water.html
Product Strategies
Product Life Cycle
Maturity Stage
Vitaminwater has a high yearly sales, but
these sales are no longer growing and show
signs of delcine. (see BCG Matrix)

Many competitors have entered the market (True)

since its founding in 1996. (see Competitors)

Vitaminwater has made its drink healthier.
(see Social Trends)

It now has the opportunity to enter into the

Sports Drink Market in addition its current
Enhanced Water Market.

It has already started to reach this market

with the release of Vitaminwater Energy and
advertisements containing famous athletes.
(Vitaminwater Energy)
(Shpigel) (Abshire)
Product Complexity
Core Customer Value, Actual Product, Associated Services
Brand Name Features and Design
9 different flavors
Vitamins are dissolved into the water
The brand name is important to this No sugar
product. Consumers know the product as 0 calorie versions available for most flavors
Vitaminwater, not as enhanced water.

Packaging
Quality Levels Each flavor is
assigned a
The product is expected to be consistently produced at unique bright
the same quality level. If this level is not achieved, color
customers will be lost. For example, when the product
replaced the sugar with stevia, initially many customers
left the brand due to the change in taste.
Product Support
Label lists vitamins included in each flavor
The company allow customers
on the front
Core Customer Value to offer feedback through
social media such as Twitter. The back contains additional nutritional facts
Fueling the body with hydration and Customers can also email or
nutrients The packaging is highly recognizable and is
call the company hotline with
interchangeable with the brand name.
any questions, complaints, or
concerns.
Type of Product
Convenience

Vitaminwater is a CONVENIENCE PRODUCT:

Beverages are frequently purchased items
Consumers are not willing to spend time
evaluating their purchase
Product Involvement Continuum
Limited Involvement
Limited Problem Solving: when choosing a beverage, the process takes
a minimal amount of time

Impulse Buying: consumers may choose to purchase

Vitaminwater on the spot when see it rather than
considering the purchase beforehand
Extended Limited
Problem Solving Problem Solving Habitual Decision Making: Consumers make fall into the habit
of purchasing Vitaminwater, where they purchase the
product with little conscious effect.
For example, a consumer may purchase Vitaminwater
from the vending machine on their lunch break
everyday without thinking about it.

ADVANTAGE: If consumers enjoy the first time they try the product, they can fall into the habit of purchasing it. They may also be more willing to pay a premium
price without thinking about it. Vitaminwater is already using this to its advantage.
Pricing Strategies
 Pricing Psychology
Selling at a Premium
Vitaminwater is sold at a premium price, above competitors
including SoBe Life Water and Nestl Pure Life.
Approximate Price
This price presents Vitaminwater as a better quality product Brand Per fl. oz. Per Unit
in than its competitors in the eyes of consumers. This helps
Vitaminwater create inelastic demand for its product. Sparkling Ice: $.15 $2.49
Vitaminwater is priced similarly to the competitor Sparking Vitaminwater: $.12 $2.49
Ice, which is also being sold at a premium.
SoBe Life Water: $.07 $1.47
If Vitaminwaters price increased by 5%, the majority of its
consumers would continue to purchase the product Nestl Pure Life: $.07 $1.20
regardless. However
Moving forward, it would be best for Vitaminwater to continue with the current price. Increasing its price would not improve
the perceived quality of the product as it is already being sold at a premium. Though the brand has loyal consumers and the
demand is somewhat inelastic, it is possible that if the price were to increase anymore, customers would be lost to similarly
priced products such as Sparkling Ice.
Promotion Strategies
Place Strategies
 Distribution Strategy
Channels of Distribution
Manufacturer
(Coca-Cola)

Wholesalers
Reseller

Vending
Gas Stations Markets
machines

Consumers
 Given that a large portion of its marketing s trategy r evolves around c elebrities, the c ompany has to r esearch the local c ultures in order to effectively implement its campaigns.

Global Market
Vitaminwater is sold in over 26 countries
Given that a large portion of its marketing strategy revolves
around celebrities, the company has to research the local cultures in
order to effectively implement its campaigns.

#ShineBright campaign in Europe:

The Goal: get people in Europe talking about
Vitaminwater
Same Market, Different Country
The Idea: offering emerging talent in the worlds of
Vitaminwater is still using Psychographic Segmentation
fashion, music, design and media the chance
using STRIVERS as the target market.
to work with a mentor
Celebrity Mentors: London fashion blogger Susie Lau; founder Strivers, regardless of where they are from, want to emulate
of London street wear label Trapstar those with greater wealth. In this campaign, the brand is
Mikey Trapstar; Swedish architect and offering strivers the chance to be mentored by the successful
designer Jenny Grettve people they esteem. This will attract the attention of many
strivers to the brand.
Works Cited
Abshire, Josh. WordPress. Web. 08 Dec. 2014.
<http://joshabshire20.wordpress.com/page/2/>.
"Make It Big" Vitaminwater Commercial with Kevin Hart (Video Ad)." ResourcesForLife.com. Web. 08
Dec. 2014. <http://www.resourcesforlife.com/docs/item9860>.
Shpigel, Ben. "Everybody Loves David." The New York Times. 31 Mar. 2007. Web. 08 Dec. 2014.
<http://www.nytimes.com/2007/04/01/sports/baseball/01mets.html?pag wanted=all>.
Stevia. Organic Lifestyle Magazine. <http://www.organiclifestylemagazine.com/issue/3-stevia/>.
"Strivers." VALS. Strategic Business Insights. Web. 06 Dec. 2014.
<http://www.strategicbusinessinsights.com/vals/ustypes/strivers.shtml>.
"True Benefits of Product Life Cycle Management." IMS Marketing. Web. 08 Dec. 2014.
<http://www.imsmarketing.ie/news/truebenefits-of-product-life cycle-management/>.
"Vitaminwater Brand Ambassador." Barefoot Student. Web.
<http://www.barefootstudent.com/images/bfts_images/12700 _43166.png>.
"Vitaminwater Energy." Beverage Industry. Web. <http://www.bevindustry.com/articles/87378-
vitaminwaterenergy>.