1.

Product Life Cycle of Vitamin water

We believed that vitamin water is in its Maturity stage of the Product Life Cycle. The product was launched in
the U.S around the year of 2000. Most people are already aware or have at least a vague idea of what the product is
and how to drink it, however because of the lack of traditional promotion on the TV, radio etc. vitamin water has
been growing slowly. According to Mintel, even though vitamin water has gained 5% of the market share in the
bottle water market vitamin water still needs to work on getting new consumers, and have those trier consumers
become loyal. It is important for vitamin water to not only focuses on the first consumer experience, but also in
reinforcing what the product and brand is in order to increase their sales.
2. Competition
a. Primary Competition
The beverage industry is constantly competing with many of the new drinks that have been introduced
into the market. According to Mintel, competition has been affected by price, interchangeable drink options, and
by the companies acquisition of small and new beverage companies. The market for vitamin-enhanced water
compete with new product innovation driven by health and wellness, and most products now offer almost the
same benefits as the vitamin water products such as fruity flavored, antioxidants, minerals etc. For this reason, it is
believed that the primary competition for Vitamin water is Gatorade, Propel, Powerade, and Snapple. These
products compete directly in the vitamin enhanced water market because they provide to the consumer similar
benefits such as high nutritional content, less calories, variety of fruity flavors, immunity boosters and vitamins. It
is important to mention that results from a noncarbonated beverage research showed that consumers between the
ages of 18-34 preferred to consume vitamin-enhanced water over fruit juice and sport drinks because of fruity
flavor, less calories, vitamins and minerals.
On the other hand, some products that are offered by our primary competition provide a better and
stronger taste in comparison with vitamin water. For example, Snapple Juice has the same benefits as vitamin
water, but what it makes it unique is the concentrated juice flavor. However, Gatorade, propel and powerade dont
have a concentrated flavor, but yet they have been in the market for a longer period of time what allowed them to
develop loyal consumers especially if they have products with low calories.
b. Secondary Competition
Vitamin water competes as well with secondary competitors that include: substitutes, home-made drinks
and suppliers with private labels. Substitutes such as flavored powder natural mixes offer also similar attributes as
vitamin water, and they even promote convenience among consumers, especially when it comes to travel it is
easier for consumers to just get the small packages of mixes because it saves space. This mixes can also attract
consumers who are environmentally driven, especially stressing the point of recycling and issues about bottle
water. Home-made drinks are more natural, offer similar benefits, and they also offer a more concentrated flavor.
In addition, consumers can mix different fruits and get their desired/favorite flavored that might not exist in the
vitamin water market. The only fallback with home-made drinks is that it is more expensive and less convenient
for the consumer to get it, whereas vitamin water is ready to drink and the price is way cheaper. Finally, private
label products since some of the main retailers might have developed its own beverage product to sell on the
market, making it perhaps difficult for vitamin water to be distributed at that retailer.
3. Pricing Approaches

The price for vitamin water ranges from $1.50-$2.50per bottle. The price varies a little bit depending on the
retailer where the consumer purchase it, and also depending on the location where the consumer usually does his
or her shopping. One of the pricing approaches for vitamin water is competition based pricing. Vitamin water has
set a price that competes directly with its primary and secondary competitors, always trying to keep up a little bit
higher or lower that the competitors price. In addition, there are times where some retailers have special offers
such as selling the product for $0.99 per bottle, this then ends up being a loss leader. A second pricing approach
would be Bundle price; the reason why is because vitamin water can also be sold in packages of 10 bottles for $10
dollars, this then saves the consumer 50 cents per bottle. Setting a bundle product can impact the sales of the
product. Also, for makes it more convenient for loyal consumers to buy the product. Having both, a bundle price
and a competition based pricing allows Vitamin water to reach different market segments. In one hand, it gives
the consumer the chance to buy one bottle and try the product. Then depending on whether the consumer likes or
not the product it would lead to the purchase of more than one bottle. Hence, the bundle price comes into action
by offering packages of the product for a cheaper price.
4. Branding
Two elements that make vitamin water have a good branding strategy are colors and social media. Glaceau is
Vitamin Water brand, and they have maintained a hip image throughout its expansion. Vitamin water comes in
different shades of the rainbow colors, and each comes with a name that identifies a specific thirst relief. Vitamin
water is a drink that seeks to satisfy overall health and wellness of the consumer. For this reason, giving an identity
to each color balances perfectly the main approaches of the product itself. Also, with these variations of colors and
names, the products approaching the consumers physical, emotional and spiritual appeals. The colors used in
each flavored can also be seen as transformational communication objectives because it transforms the
consumption experience of each consumer. In this case the colors create a feeling in the consumers that creates an
image about the brand in the consumer brand so that every time the consumer sees it will link it with the vitamin
water brand.
The second element is social media. Vitamin water created advertising through Facebook and Myspace.
Glaceaus website leads the consumer directly to vitamin water Facebook page which is a good way to attract the
consumer to see the product and especially to see what people in the social world are saying about the product.
The page has more than 3 million likes and it has helped to establish a good relationship with the consumer. Also,
the Facebook page was used to increase the consumer involvement with the product by creating a flavor contest in
which the consumer collaborated with the creation of a new flavor. Particularly this was a good strategy because
the contest not only helped Glaceau with the development of a new flavor, but it also helped them to know what
the consumer wanted in their vitamin water as well as to analyze their consumers. Finally the last element that is
believed to be improved is the web store. The website itself is not that easy to manage, especially when it comes to
give the consumer a good online experience. The fact that Glaceau has the Facebook page link to their website is
good and bad as well. It is bad because if the consumer wants to find more information about the product it will
lead him to a place where that information is not listed. The web store needs to be more user-friendly. In order for
them to make it more user-friendly they will first need to make sure that the consumer knows that vitamin water
brand is Glaceau. If the consumer does not know this they will have a hard time knowing or identifying the official
website that they need to go to buy the product online.

5.

Hierarchy of Effects

Based on the information on Vitamin water and the way that consumers have responded towards the
products, it is believed that vitamin water is in the adoption promotional objective of the Hierarchy effects. The
reason why is because consumers have already tried the product once or twice, but they havent become loyal to
the product or brand itself. For vitamin water it is important to develop consumer loyalty especially with the vast
variety of competition in the bottled water market. By doing so it will also help to represent more than a
nutritional or enriched drink, it needs instead to be also seen as a product that will make the consumer healthier
because they consume Vitamin water. Hence, once this has been established in the consumers mind they will be
more likely to be loyal to the product and buy more often that someone who doesnt. In addition, by establishing
consumer loyalty they will also become more known through word of mouth, a method that seems to drive
consumers to purchase a product based on their social needs.
6.

Integrated Marketing Communication Tools

One of the tools that Vitamin water used in this year was sales promotion though a campaign that they
launched during the Olympic Games. The main idea or focus of the campaign was to create contests in the streets
of London where people could play different games and have the opportunity to win tickets to Jessie J concert.
They developed this contest online through a musical chair game where people could play it through Facebook
and win tickets for the same singer. Although this campaign was not launched in the U.S, the vitamin water
sought to increase their sales in the U.K especially because the product is the early stages of product development.
One of the tactics of this specific tool was targeting the people who assisted to the Olympics; more specifically they
targeted consumers who enjoyed not only watching sports but also participating in the same ones or at least
consumers who were relatively active. A second tactic was the idea of not only implementing these games on the
street of London but also to take a step further and use Facebook as a way to reach the online audience. The online
game was available in 20 countries and it was translated into 6 different languages. Finally, the last tactic of this
sales promotion was the fact of partnering with Jessie J and making the video of the single Laserligh, that was
the main song used in the game. With this they expanded their target audience, because by partnering with Jessie
they were able to increase awareness among Jessies fans.
The second tool that vitamin water used in the past years is advertising. In 2009, vitamin water joined the
twilight saga team to advertise their product along with the new movie coming to the theaters. The tagline used for
this ad made emphasis on the idea that vitamin water was the drink that would satisfy your thirst. This Ad used a
good tactic in identifying their target audience and connecting with consumers whose ages range from 15-34 years
old. Another tactic was the fact of using the emotional appeal of slice to life. This appeal focuses on situating the
brand on a desirable social context, and by placing and ad along with one of most popular movies in the last
couple of years was the perfect idea. The vitamin water team knew that if they could get hooked the twilight fans
they would be more popular and they would increase more awareness among current and new consumers.
7. Promotional Mix evaluation
Both the Sales promotion and the Advertising were good promotional methods used by Vitamin water. While
the sales promotion in U. K seemed to have favorable results, the New Moon campaign here in the U.S needed
more scheduling the ads. Also the Twilight campaign probably needed more advertising on traditional media
since not everyone has access to the internet. On the other hand, by doing ads online it seemed to go more with
the description of the intended audience being marketed with the twilight movie. Whereas the Olympics

campaign seemed or at least we believed that it worked better because they promoted the product itself, they gave
free samples hoping that one of the new consumers will like the product. In addition to this, vitamin water should
have put more emphasis on the Olympics campaign since it did not feature or stressed the benefits of drinking
that particular water and especially if the product in U.K is in its early product stage. The promotional mix done
by vitamin water should have stress more the Brand identity and brand image of the product, so that consumers
became more familiar and were more likely to purchase Vitamin product instead of any other product in the
bottle water market.

Works cited
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Hartman, Kate. "Jessie J and Glacau Vitaminwater Team up to Create Interactive Online Video Game." Jessie J
and Glacau Vitaminwater Team up to Create Interactive Online Video Game. Business Wire, 14 June
2012. Web. 03 Dec. 2012
Howard, Theresa. "Coke's Challenge: Keep VitaminWater Hip after Merger - USATODAY.com." Coke's Challenge:
Keep VitaminWater Hip after Merger - USATODAY.com. USA Today, 25 May 2005. Web. 03 Dec. 2012.
Kerin, Roger. Marketing: The Core. 3rd ed. N.p.: McGraw-Hill, 2010. Print.
Mei1004. "Vitamin Water 1." Scribd. N.p., 28 July 2008. Web. 03 Dec. 2012.
Robbins, Peter, and Alan Shepard. "Integrated Marketing Analysis." Business Library. N.p., 14 Dec. 2009. Web. 22
Nov. 2012.
RTD Non-carbonated Beverages. N.p.: Information Resources, n.d. Mintel. Web. 22 Nov.
Sasha. "Vitamin Water- Marketing Brand Discussion." Jewzicom. Jewzi, 19 Aug. 2011. Web. 03 Dec. 2012.
Williams, Jennifer. Lecture 17: Advertising Objectives and Strategies. Retrieve from Principle of Strategic
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Glaceau Vitamin Water

Marketing Analysis

*Galindo, Viviana
Mktg 3001 Section 04