This document provides a strategic marketing plan for a new bottled water called OXYwater. It begins with an in-depth market analysis of the beverage industry and bottled water category. It finds bottled water is the second largest beverage segment and consumption is steadily rising. The document then analyzes bottled water as a business, identifying business models and product types. It also provides a competitive analysis, identifying direct, indirect, and landscape competitors. Key target markets for OXYwater are identified as athletes, mothers/children, hungover drinkers, and health conscious consumers. The document concludes with a forecast of continued growth in the bottled water market.
2. Index:
• Part I - In-depth Market Research
(A) The Beverage Industry & Bottled Water Category Overview
(B) Bottled Water as a Business
(C) Competitive Analysis
(D) Target Markets for OXYwater
(E) OXYwater Overview
(F) Trends and Insights
• Part II – Strategic Options
(A) Strategic Options
(B) Strategic Recommendations
• Part III – Marketing Communications Plan
(A)Objective and Goal
(B) Brand outline
(C) Message
(D)Tactics
(E) Campaign Calendar
• References
3. Part I: In-depth Market Research
(A) The Beverage Industry & Bottled Water Category Overview
In the United States, there are multiple types of beverages being sold everyday. The
consumer market purchases mostly carbonated soft drinks, but bottled water has grown to
be the second largest beverage category in the country with 38% market share by 2010.
#1 Sales in USA Carbonated soft drinks
#2 Sales in USA Bottled Water
#3 Sales in USA Juice
#4 Sales in USA Sport Drinks
From 2009 to 2010 sales declined .8% for the carbonated soft drink market, and 2% for
juice, while bottled water sales increased 3.5%. 50 billion bottles of water are consumed
every year in the USA, and 200 billion globally. Consumers are purchasing and drinking
more bottled water year over year (see graphs below). While the United States is the
number one consumer of bottled water, Mexico is the second, and China is the third.
China is the fast growing market in the world. As for the United States, growth has been
steady. The average consumption per person in the USA was 16.2 gallons of bottled
water every day in 1999, and 27.6 gallons in 2009. Major contributors in this incline for
bottled water consumption have been related to health (people have begun to distrust tap
water), safety (people do not have to keep bottled water cold), and convenience (people
can bring bottled water almost anywhere).
• Growth of the Bottled Water Market:
In 2007, the market value of bottled water (flavored, noncarbonated) was forecasted to
exceed carbonated soft drinks. The global market value was estimated at $66 billion in
2007 and $80b in 2009. In response, the largest soda companies, Coca-Cola and Pepsi,
entered the bottled water market. In 2008, the USA was the largest market for bottled
water sales. The bottled water market experienced a decline in sales during the recession
in 2008 and 2009. In response, many brands lowered sales prices. At the same time,
global consumption, US consumption, and overall market value of the bottled water
market has been steadily increasing.
4. • Trends:
o Environmental – The environmental impacts of groundwater extraction, the energy
and environmental costs of the plastic packaging and transportation costs are
becoming a concern in the media and among the public.
o Public Health – Although bottled water is regulated by the FDA, there are public
concerns about the quality and validity of some marketing claims by water
companies.
o Economic – In the USA, bottled water costs range between $0.25 and $2 per bottle,
while tap water costs less than a penny. Additionally, it is interesting to note that an
arsenal of products have been developed that make the consumption of tap water
easier. For example, travel water bottles (Kelly Kean) and filter systems (Brita).
o Public views – Some people believe that 40% of bottled water is simply filtered tap
water, that it uses a lot of energy to produce, creates a large amount of waste (only
25% of the plastic used to bottle water ends up being recycled), and that there is a
chance the water could include arsenic, nitrates, and/or bacteria. It is also a concern
that when exposed to sunlight, the plastic from the bottle’s packaging contaminates
the water.
2002
2004
2006
2008
2010
2012
29.3b 30.1b 30.4b 29.8b 29b 29.3b
US Consumption in Gallons
2000
2002
2004
2006
2008
2010
7.4b 10b 11.6b 11.2b 10.6b
US Market Value
5. • Forecast:
The total amount of beverages that Americans annually consume is expected to remain
stable, resulting in overall volume growth as the population increases. Out of all
beverages, bottled water is expected to grow considerably faster. Consumers are
searching for better tasting, and less bland, beverages. Bottled water companies are
starting to target the younger generations as well as the health-conscious consumers. The
market value of the industry is expected to increase by 2012 to be worth $94 billion
globally and $15.1 billion in the USA.
(B) Bottled Water as a Business
• Main business models of bottled water companies:
In 2010, 51% of all bottled water business launches were flavored waters.
1. Major Manufactures, which accounted for 70% of all bottled water sales in 2009
(Coca-Cola, Pepsi, and Nestles)
2. Small manufactures (Fiji Water)
2002
2004
2006
2008
2010
2012
2014
$60b $66b $80b $94b
Global Market Value Forecast
1998
2000
2002
2004
2006
2008
2010
2012
2014
7.4b 10b 11.6b 11.2b 10.6b 15.1b
US Market Value Forecast
6. 3. Private labels (Trader Joes)
4. Startups (OXYwater)
• Types of manufactured and sold bottled waters:
Origin/Source – Spring, artesian, and well.
Packaging/Delivery Method – Tap and bottled (plastic and glass).
Processed – Purified, filtered, distilled, de-ionized, and sterile.
Body structure/Type – Still, carbonated, and mineral.
Components - Enhanced (Colored, flavored, and fortified with vitamins and/or
minerals) or not.
• Bottled Water Market Leaders:
#1 Pepsi-Cola’s Aquafina
• Best brand image and consumer favored for several years.
• Reached $1b in sales in 2004.
#2 Coca-Cola’s Dasani
• Reached $1b in sales in 2005.
#3 Nestle Waters North America’s Poland Springs
• NWNA worth $3.1b in 2005 and had 31% market share.
• NWNA owns Poland springs, Arrowhead, and Zephyrhills.
• NWNA was bottled watered market leader from 2007-2010 (while
Poland springs was #3 best seller).
• MWNA sales drop 12.6% due to a consumer shift towards tap water.
Source: Beverage Marketing Corporation, 2010
Rank Brand; Company Total in Sales
1 Aquafina; PepsiCo $1.18b
2 Dasani Coca-Cola $1.16b
3 Poland Spring; NWNA $830m
4 Nestlé Pure Life; NWNA $699m
5 Arrowhead; NWNA $479m
6 Crystal Geyser; Crystal Geyser $475m
7 Deer Park; NWNA $457m
8 Ozarka; NWNA $320m
9 Ice Mountain; NWNA $262m
10 Zephyrhills; NWNA $226m
• Top Enhanced Bottled Water Market Leaders:
Rank Name Type of Enhancement
1 Coca-Cola’s Vitaminwater (regular
and Zero)
Vitamins and Flavored
2 Pepsi’s Propel Vitamins and Flavored
3 Smartwater Electrolytes
4 Gatorade sports water Electrolytes and Flavors
5 Powerade (regular and Zero) Electrolytes and Flavors
7. 6 Aquafina Alive Vitamins and Flavors
7 Aquafina flavor splash Flavors
8 Dasani Plus Vitamins and Flavors
9 SoBe Lifewater Antioxidants, Electrolytes, and
Flavors
• Consumer Demand for bottled water:
Spring water and purified tap water are currently the leading global sellers. In 2005, 95%
of all bottled water sales were domestic still waters, and 96.1% in 2009. At the same
time, in 2009 (during the recession) the only bottled waters that reported an increase in
sales were private labels and Smartwater.
• Consumer Segments of bottled waters:
Soda drinker switchers Individuals and families
Juice drinker switchers Individuals and families
Health conscious consumers Individuals and families
Athletes Individuals
High Income/socially trendy Individuals
Travelers/On the Go Individuals
Preference consumers Individuals
(C) Competitive Analysis
OXYwater will have multiple competitors. There are three main types of competitors for
OXYwater: Direct, Indirect, and Landscape.
• Direct competitors are bottled waters that are similar in product (enhanced) and
positioning (Oxygen):
Name Positioning
O2go Oxygen
O2Canada Oxygen
• Indirect competitors are similar in product (enhanced) but not positioning (Oxygen):
Name Positioning
Vitamin Water Vitamin water
Smartwater Sports water
Gatorade Sports water
Propel Vitamin water
Powerade Sports water
Aquafina Alive Vitamin water
Nestle Pure Life Health water
Dasani Plus Vitamin water
SoBe Lifewater Health water and sports water
Skinny Vitamin water
Aquafina flavor splash Flavored water
8. Nestle Pure Life Flavor Splash Flavored water
Fruit2O Flavored water
• Landscape competitors are beverages but are not similar in product (enhanced) or
positioning (Oxygen), such as still bottled water, tap water, soda, juice, coffee, and
milk.
• Positioning map of direct and indirect competitors
(What you are claiming to be? Example: enhanced vitamin water or enhanced oxygen
water)
o Positioning Map (what they are claiming to be):
Positioning Name
Vitamin water Vitaminwater, Propel, Aquafina
Alive, Dasani Plus, SoBe Lifewater,
Skinny
Mineral water (still mineral water) Volvic, Evian
Sports water (typically, water with electrolytes) Gatorade, Powerade (the less
calories Gatorade – made by
Gatorade), Smartwater
Flavored water Aquafina Flavor Splash, Nestle Pure
life Flavor Splash, Fruit2O
Oxygen water O2go, O2Canada
• Positioning segment/Brand promise Matrix
(What the water claims it can do for consumers; why and when consumers should drink
the water.)
Reasons why consumers drink bottled water:
Health benefits (liquid vitamin and minerals)
Hydration
Juice and soda alternative
Thirst quencher
Cleaner than tap
Convenience
Taste (better than tap)
Reasons why consumers drink enhanced (still) water:
Health benefits
Hydration
Juice alternative
Positioning Segment map (why drink them):
Positioning Segment Name
Health benefits (typically, vitamin and
mineral waters)
Vitaminwater, Sobe lifewater, Dasani Plus, Propel
Zero, Skinny
9. Hydration (typically, sport waters with
electrolytes)
Gatorade, Powerade, Smartwater
Juice alternative (typically, flavored
waters)
Aquafina Flavor Splash, Nestle Pure life flavor
splash, Fruite2O
(D) Target Markets for OXYwater
There are multiple target markets for enhanced waters like OXYwater (vitamin waters,
sport waters, and flavored waters):
• Athletes (to drink during or after working out)
Size of market – It is estimated that there are about 50m people who exercise
on a regular basis, and about 10m engage in endurance sports/races annually,
in the USA.
Demographics – Almost all ages (high school, college, and adults), races,
genders, and lower-middle to upper class.
• Mothers and Children (Mothers buying water for the children)
Size of market – 75m children in the USA in 2009. Marketing to moms is
believed to be a $2.1 trillion market.
Demographics – Typically 18+ in age, all races, religions, and lower-middle
to upper class.
• Mothers make 95% of all household purchasing decisions.
• The number of families in the USA has been in decline. In 2005 31.9%
of households had children and in 2009 it was 30.6%.
• The hung over drinkers (for example, college students which is a 14.4m consumer
market)
Size of market - An average American may consume over 25 gallons of beer,
2 gallons of wine, and 1.5 gallons of distilled spirits each year. Americans
spend over $90 billion dollars total on alcohol each year. $5.5b are by
students.
Demographics – 21+ in age however, the highest percentage of heavy drinkers
(12.2%) is found among unemployed adults between the age of 26 to 34. It
includes all races, both genders, predominately lower-middle to upper class
(must be able to afford to buy alcoholic as well as bottled water).
• Health conscious/the everyday consumer of enhanced water (people who prefer to
drink their vitamins and/or enjoy the taste of flavored water)
Size of market – There are 307m people in the USA. 2/3 (about 200m people)
want a beverage other than water with their meals. Some want sports water,
and some want flavored water.
Demographics – All ages, races, and religions. Economically, lower middle
class to upper class, but not lower class (must be able to afford to buy bottled
water).
Determining direct target markets for OXYwater will be based off of its positioning
segment:
Positioning Segment Target Markets
Health benefits Athletes, Moms, health conscious/the
10. everyday consumer
Hydration Athletes, The hung over drinkers
Juice Alternative Moms, health conscious/the everyday
consumer
• Underserved target markets
A direct and indirect competitor might target a vertical market (focus on 1 target market
to promote to). Analyzing this will determine is there is a market that is not being
targeted:
Indirect and Direct competitors target markets:
Name Positioning segment Target Market
Vitaminwater health benefits Health conscious/the
everyday consumer
SoBe Lifewater health benefits Health conscious/the
everyday consumer
Gatorade hydrating Athletes
Powerade hydrating Athletes
Smartwater hydrating Athletes & Health
conscious/the everyday
consumer
Aquafina Flavor Splash juice alternative Health conscious/the
everyday consumer
Nestle Pure Life Flavor
Splash
juice alternative Health conscious/the
everyday consumer
Fruit2O juice alternative Health conscious/the
everyday consumer
• Consumer Demand for enhanced bottled waters
As the demand and consumption of bottled water increases in the USA and globally, the
consumption of enhanced bottled waters does also. In US, the market share of enhanced
beverages accounted for 48.9% of the $118.3 billion-worth non-alcoholic industry in
2008. Consumption of flavored and enhanced waters increased 8.3% from 2007 to 2008
(only other beverage that also increased that year was energy drinks). Since there has
never been a popular oxygen water before (a big player), it is difficult to determine if
there is/will be a consumer demand for this positioning. However, there are big players
utilizing the position segments:
Demand for “health benefits” water (note – sales for mineral waters increased 2010)
Vitaminwater Sales of $687m in 2010, which was a
decrease of 4.5% compared to 2009.
Claiming a 8% increase in 2011 Q1; has
2.6 million facebook fans.
SoBe Lifewater Sales decreased .9% in 2010, to $196m in
sales. The company has claimed an
increase in sales for 2011.
11. Demand for “hydrating” water
Gatorade Sales were $2.6b in 2009 (lower than
2008), but increased 15% in 2010 (when
they rebranded). Additionally, Gatorade
owns 71% of $6.7b sports water market.
Has 3.9 million facebook fans.
Powerade Sales were $654m in 2009 and increased
70% in 2010.
Smartwater Sales increased during recession. In 2010,
sales increased 28%.
Demand for “juice alternative” water
Aquafina flavor splash Did not find – but only 219 facebook fans
Nestle Pure life flavor splash Did not find – does not have a facebook
page
Fruit2O Did not find – has 30,000 facebook fans
Although there is no publically shared insights into the sales and success of Aquafina
flavor splash and Nestle Pure life flavor splash, research shows the following interesting
trends and consumers demands for this positioning segment:
Consumers want healthy, calorie-free, beverages that have more taste than
water.
2/3 people want a beverage other than water with their meals. Men and people
ages 25-34 typically want sports water, but mothers want flavored water.
(E) OXYwater Overview
OXYwater S.W.O.T.
Strengths
• The bottled water industry is forecasted
to continue to grow.
• Not many direct competitors.
• Direct competitors are not colored,
flavored, mineral water (they are still
waters).
• There are multiple consumer segments
that buy bottled water.
• Entry barriers for new to market are
low.
Weakness
• Bottled water is a saturated market.
• Bottled water has a high production
cost.
• Out of all bottled waters, still water
sells more successfully than enhanced
waters.
• Multiple types of competition: direct,
indirect, and landscape.
• Past failed oxygen waters (Vitamin O).
• There are multiple skeptics of oxygen
enhanced water, and its benefits, posted
online.
• It is difficult to determine if there will
be a consumer demand for oxygen
water since there are no big players to
learn from as an example.
12. Opportunities
• Hydration waters sales increased during
the recession (not health waters).
• China is the fastest growing market.
• Mothers are the biggest consumer
market in worth (valued at $2.1 trillion)
are an underserved market.
• Research shows that people (mothers in
particular) want flavored water, and the
ones on market have much less brand
equity than health waters and sports
waters, and are not targeting
mothers/children.
• There are vitamin waters that are
flavored, but there are not flavored
waters (juice substitutes) that also have
vitamins and minerals.
Threats
• Health and hydration water positioning
segments are taken by very big brands
with huge market share, brand equity,
customer loyalty, and marketing
budgets (Vitaminwater and Gatorade).
• Environmentalists, who are against
bottled waters, could produce negative
press.
• The public, and FTC, could argue that
oxygen in water is not a value
proposition (since there is not a large
volume of publically proven cases
published online).
• Tap water is lower in price and more
convenient than bottled water.
• Economic trends affect the sales of this
industry. During a recession, sales will
decline.
• The FTC. Vitamin O was suited1999
for false advertising. OXYwater will
have to be careful in its
messaging/promotion of Oxygen water.
(F) Trends and Insights
Trends:
• As ad spend increase, revenue also increases for enhanced bottled water brands.
• All of the large enhanced vitamin waters sub-position (positioning segment) as
healthy, and target the everyday consumer market.
• All of the large enhanced sports waters sub-position (positioning segment) as
hydration, and target athletes.
• All of the large enhanced flavored waters sub-position (positioning segment) as a
juice substitute, and target everyday consumers.
Insights:
• Consumers do spend money on enhanced bottled water.
• Investing in marketing and advertising correlates to a growth in bottle sales.
• A Mintel Oxygen research study in 2009 found that consumers can not really tell the
difference between bottled waters in taste. This means that competitive angle is
largely dependent on positioning of the brand.
• In each enhanced bottled water positioning and positioning segment space, there does
not seem to be much differentiation between the big players.
• There seems to be a large missed opportunity to target women (as vertical),
practically moms, which makes them an underserved market.
• Enhanced waters that position as vitamin waters are flavored, while there are no
waters positioned as flavored that also have vitamins.
13. Part II – Strategic Options
The objective of this section is to explore different ways that OXYwater might be able to
differentiate itself, and successfully build brand equity, in the crowded space of enhanced
bottled waters. OXYwater should choose a strategy that will leverage its strengths in
order to take advantage of opportunities, and overcome weaknesses in order to avoid
threats (see SWOT).
(A) Strategic Options
• Differentiation – Oxygen will have to prove how oxygen in water is a benefit for
consumers (publish clinical trial online) in order to prove its value propositions (what
problem is OXYwater solving?).
o Product Differentiation - (Your category in the bottled water industry: how your
water is different from others on shelf.)
Ingredients / type of enhancement
• Although OXYwater has a number of enhancements, it is critical to
focus on only 1 or 2 so as to not overwhelm the consumer market and
have a focused marketing message while building brand equity.
Packaging
• OXYwater should invest in biodegradable bottles (such as Biota in
Colorado) to avoid negative environmental side effects from
production and consumption. Additionally, consumers are more likely
to purchase environmentally safe products than other products.
Furthermore, OXYwater could promote their environmental efforts
and build the brand image of a “green” company.
o Positioning - (what you are claiming to be)
It is critical to have a focused positioning so that consumers understand what your
product is. OXYwater has chosen the positioning of Oxygen water, which makes it an
indirect competitor to many big brands already on the market. However, there are so
many other components to OXYwater (flavor, color, vitamins, minerals). OXYwater
should choose a positioning that will leverage this difference in the market place (oxygen
water), while also choosing a positioning that there is a demand for from at least one
target market (especially an underserved market). Therefore, OXYwater should keep the
positioning of oxygen, but add it to an already existing type of enhanced bottled water on
the market that there is proven demand for.
Flavored water with oxygen
• Pro - there does not seem to be any competition, could keep brand
name, and there is a demand for flavored water (especially from an
underserved market – mothers).
• Con - there is no information on the potential demand or no demand
for oxygenated water. If OXYwater could prove that oxygen in water
hydrates as well as, or better than, electrolytes there would be a clear
14. connection to the sub-positioning of juice alternative for children as
well as hydrating water for women.
o Positioning segment – hydrating and juice alternative
It is critical to have a focused positioning segment (sub-positioning) so that consumers
understand why they should by and when they should consumer your product. As a
flavored water with oxygen, OXYwater will be placed into the positioning segment of
juice alterative. If OXYwater can prove that oxygen helps hydration, it can also be
placed as in the hydration-positioning segment. The clear connection between
positioning (what you are) positioning segment (why drink and when to drink) becomes
clear when we look at who should drink OXYwater (see target market section below).
• Target Markets
OXYwater should concentrate their marketing messages to target one target market.
Rational:
Focused marketing message and branding requires less time, effort/staff, and
budget/money.
Brand equity grows quicker and stronger (it will take less time and money to
build top of mind among your target market).
Enables new brands to take advantage of an underserved market (winning
underserved consumer buyers is easier than “switchers” – Switchers already
choose another brand, and you will have to convince them to choose your
brand instead).
Once a brand owns one market, it is easier for them to enter another.
OXYwater could target the same market as big brands such as Vitaminwater, Gatorade,
and Aquafina Flavorsplash or an underserved market.
o Same market that other waters target:
Marketing to consumers that already use those products and attempting to
convince them to switch.
Marketing to “switchers” can be risky for a brand, not only because it can take
more time and require more marketing budget.
Would have to prove/convince the switchers that your brand is better in a
rational and solid way
• That Oxygen is healthier than vitamins
• That Oxygen hydrates better than electrolytes
• That Oxygen makes water taste better
o Underserved market – The family
Would not directly compete with big established brands such as Vitaminwater
or Gatorade
The underserved market in the enhanced bottled water category seems to be
the family. No big enhanced water brand is targeting the family as a main
target market or women as a sub-target market. This is a huge opportunity for
OXYwater because:
15. • Women more likely to buy bottled water (because studies show they
keep more hydrated than men).
• 85% of all brand purchases are by women.
• It is forecasted that by 2012, women will own 2/3rds of all the
consumer market wealth.
• Could also target mothers (an underserved market), which is a $2.1
trillion market.
• Mothers want more flavored options to introduce to their children.
• Rational connection from positioning to positioning segment to sub-
target market “women”:
o Flavored juice alternative mothers (shopping for
children)
o Oxygen hydrate women
“OXYwater is water for the entire family. Mothers can
drink it to stay hydrated, and their children will love the
taste”
• Targeting “the family” would streamline distribution (see Place section
below) and enable OXYwater to focus on partnering with only one
main source (supermarkets).
• Place
o Country - The global bottled water market is dominated by Europe and United States,
which together account for about 55% of the market value estimated in the year 2008.
However, several bottled water companies are looking to enter developing markets
with immense growth potential such as Asia and Middle East. China is one such
market where sales of bottled water are rapidly increasing.
o Distribution – Be where your target market is (by targeting “the family” OXYwater
could concentrate on one main distribution channel, the supermarket).
Women/Mothers – supermarkets.
Athletes – gyms, events, sport stores, sport arenas.
Drinkers – Drug/liquor stores, college campuses.
Health conscious/the everyday consumer– organic grocery stores. gyms, yoga
stores and studios, vending machines.
• Price
During the recession demand for bottled water declined and many bottled waters
decreased their prices in reaction. As a new brand in a competitive space, OXYwater
will have to start at a sales price that is lower than the competition to stimulate demand.
However, the price should not be so low that it negatively affects the brand image
(extremely low prices can cause consumers to see the brand as cheap). Kroger (#1) and
Safeway (#2) are the two best selling supermarkets in the USA. There are about 1,000
more Safeway supermarkets in the USA. If OXYwater targets “the family” it will be
selling more larger quantities (bulk) rather than single bottles (as it might if it target the
everyday consumer). The current prices of bulk volumes of enhanced waters at Safeway
(in Seattle, WA) are:
16. “health benefits” waters
Vitaminwater $16.99 for 12 bottles
12 = 16.99
SoBe Lifewater $1.99 for 1 bottle
12 = $24
“hydrating” waters
Gatorade $6.99 for 8 bottles
12 = $10.49
Powerade $5.99 for 8 bottles
12 = $8.99
Smartwater $8.49 for 6 bottles
12 = $16.98
“juice alternative” waters
Aquafina Flavor Splash Did not find at Safeway
Nestle Pure life Flavor Splash $3.15 for 6 8oz bottles
12 = $9.45
Fruit2O Did not find at Safeway
If OXYwater targets the family, it should focus on selling bulk packages of bottled water.
The consumer will be able to purchase more volume for a sales price that is less per
ounce than single bottle sales. The consumer will therefore believe that they are saving
money/getting a deal, and the OXYwater brand image will not be damaged (as it can be if
priced to low). Packages of 12 bottles seem to the maximum norm. Therefore, as long as
OXYwater sells 12 bundle packages of 12oz bottles at a price under $8.99 it should spark
demand among consumers.
• Promotion
There has been a correlation between how much money a bottled water company spends
on marketing and advertising and their sales revenue. For example, two vitamin waters
that increased sales in 2008 over 2007 were Vitaminwater and SoBe Lifewater.
Vitaminwater increased advertising spend 85.3% in 2008 and SoBe Lifewater increased
218.9%. A few types of marketing campaigns has been recorded as successful for
enhanced water brands:
Spokespeople – Ellen helped Vitaminwater boost sales. This could be a
useful tactic for OXYwater if they target women because it has been proven
that women trust brands more when other women have recommended it.
Sales promotions/give aways – Many bottled waters reduce the sales price and
promote a sale of some type to their target market. Sales promotions can help
to clear inventory, stand out from competition, spark interest from consumers
and increase sales in the short term. However, it can sometimes have a long
term negative brand image effect, can cannibalize opportunity costs that could
17. have been made (i.e. the revenue that could have been made from consumers
who would have paid full retail price, regardless of a sales), and it can create a
market of short term buyers rather than loyal consumers.
Cause marketing – by aligning your brand with a cause, the brand image of
the cause can transfer on to the brand image of OXYwater. It is important to
align with a cause that your target market relates to.
The specific types of marketing tactics depend on the main and sub-target markets.
Details of marketing tactics (how to reach target market) and messaging (what to say) are
based off of the brand’s short term objectives (to grow brand equity, increase sales, or
retain customers for repeat purchases) and long term goals (to be the best selling, have
highest top of mind and aided recall, or to own a target market or brand category). The
details of this plan for OXYwater will be in Part III “Marketing Communications Plan”
section.
(B) Strategic Recommendations
Note – These recommendations are based on the research found in the previous sections
of these SMP. These recommendations are based on strategic options with the least
among of cons and largest amounts of pros. These recommendations are also based off
of the attempt to leverage OSYwater’s strengths to take advance of opportunities while
also decreases threats by limited OXYwater’s weaknesses. These recommendations are
solely recommendations and OXYwater is the party that decides whether to turn these
recommendations into action plans for the brand OXYwater.
• Product Differentiation – Oxygen water packaged in PLA plastics (corn or plant
based).
• Positioning – A flavored water with oxygen.
• Positioning Segment – A juice alternative that hydrates (a flavored water with more).
Promote that oxygen is a family water (children will love the taste and
mothers will love the way it makes their head clearer and body function
better)
• Make sure that all value proposition claims are true and published.
Make sure to work with an established 3rd
party verifier in order to be
safe from false advertising suites from the FTC.
• Target Market – The family
o Sub-target markets – Mothers, children, and women.
Message to women – this water hydrates just as well as Smartwater but tastes
better, as is “the water for women” (cares about women, is a partner for
women).
Message to mothers – your children will love the taste and it is healthy for
them (because it has vitamins and minerals).
• Place – USA; supermarket that have high volumes of women and mother shoppers,
high volumes of enhanced bottled water sales, and low volumes of flavored bottled
waters on the shelf (work with supermarket buyers to determine these areas).
• Price - Priced comparably to other popular waters, but slightly lower to increase
demand, at $8.98 per 12 pack of 12oz bottles. If demand is not sparked, OXYwater
18. should test the target market of “the family” to determine the exact price equilibrium
point.
• Promotion - Cost efficient yet effectively targeted campaigns that reach (in message
and channel) women and mothers.
Part III – Marketing Communications Plan
(A) Objective and Goal
• Long term goal
To have the highest top of mind among women and mothers out of all
enhanced waters.
• Short term objective
To grow brand awareness and establish positive brand image among women
and mothers.
• Strategic plan
Use cost efficient, yet effective, marketing tactics to promote the value
propositions of OXYwater to:
• Mother’s children will love the taste, and it is healthy for them too.
• women hydrates well and give you mind and body the power it
needs to be strong, motivated, and powerfully healthy.
(B) Brand Outline
• Brand promise
OXYwater is a great water for women because:
1. Oxygen water with vitamins and minerals is great for women’s body
and mind.
a. Clinical study proved this.
2. This is a great option for mothers, because OXYwater taste great, and
kids love it.
a. Promote a “Kid tested, mothers approved” type of message
Note: OXYwater must be careful in its messaging. The FTC will most likely
watch closely due to the 2000 fine of VitaminO water. Be careful to not false
advertise, to always have evidence from 3rd
party verifiers to back up claims,
and word messaging properly so not mislead consumers or publish false
statements.
• Brand Outline
o Industry - beverage
o Category – bottled water
o Product segment – enhanced
o Positioning – flavored oxygen water
o Positioning segment – hydrating juice substitute
o Target market –the family
o Sub-target market – women (individual and mothers)
o Brand identity – a water for all women; a water that cares about what women care
about; a water for women.
19. o Brand personality – fun, while also a source of powerful motivation.
• Brand audit
At least 1 brand element should be memorable, at least one should be descriptive (of what
the product is), and at least should be likable (in sound and/or look and fell). The brand
elements collectively should enable the consumer market to clearly understand what the
product is, who it is for, how it is different from similar products, as well as when and
why it should be bought/consumed.
o Note – a slogan is the copy that is written under the brand name. A slogan should
only be changed once ever 3-5 years. A tagline is a phrase that can be changed 3-4
per year. Taglines often represent a promotional campaign that is being marketed.
Brand Audit (with brand element examples):
Brand Element Suggestion Rational
Name OXYwater Is descriptive of the positioning and is memorable
Slogan • Water for women Is memorable and descriptive of who it is for.
Tagline • Taste With a
Purpose
• Lift your taste
• Elevate your family
Is likable and attempts to create an emotional
connection between the brand the target market,
while also portraying the positioning segment/value
propositions.
Logo An image related to
women, hydration, and
clarity, while also being
kid friendly
Should be likable and portray that brand identity and
personality.
url Oxywater.com Memorable because it is the same as the brand name.
Jingle N/A Should be memorable and likeable - If OXYwater
ever does radio or TV advertising, a jingle that
repeats the brand name and the slogan, as well
keywords related to empowering women and the
family is recommended.
Packaging N/A Should be likable and portray the brand personality in
color, look and feel, and style.
Website • Include social media
buttons
• Brand colors,
keywords, slogan,
tagline, look and feel
• Be easy to navigate
Should portray the entire brand: industry, category,
positioning, target markets, identity, and personality.
20. (C) Messaging
Messaging should always be relevant to the brand outline and always speak to the target
market. I am not a professional copy writer, but here are some examples:
• Phrases
Water for women
Water for all
Power for women
The family water
Water for the entire family
The family superhero
Elevate your body and mind
The family hero
• Keywords
Children
Fun
taste
Hydrate
Smart
Powerful
Mind and body
Protection
Thirst
Water
Family
Drink
• Include fun
interactive features
• Drives visitors to
purchase: promote
sales promotion,
online purchase
page, or “find a
store” where they
can buy product.
• Display secondary
brand associations
(cause marketing,
spokesperson,
awards, testimonials,
marketing research
study results (“4-5
kids love the taste”),
etc.
21. Juice alternative
• Call to action
Drink OXYwater
Check out OXYwater
Try OXYwater
Join OXYwater
Buy OXYwater
(D) Tactics
Plan to use tactics that not only reach the target market, but reach them where they
already are (if they are using facebook, make sure to be on facebook, and connecting with
the audience via facebook). Also, make sure that tactics are inline with the marketing
objective. If growing brand awareness is the objective, advertising is typically the most
effective tactic (if retention was the objective, email marketing would be a effective
tactic). Different tactics are more effective in reaching certain objectives.
• Methods
o Push – Be everywhere and push the product via the supply chain on to the consumer
market.
o Pull – Spark enough interest among the target market that they are encouraged to pull
the product from the supplier.
o Recommendation – Use a hybrid of push and pull methods to build brand awareness
and a positive brand image among families, particularly women. Use effective
marketing tactics that reach women and enable a connection between the brand and
women to be formed. Also, tactics that enable OXYwater to reach women frequently
in effort to increase the chances that OXYwater will be top of mind during the
purchasing decision process.
Space that women can be reached and how:
• Supermarkets (women shop)
o Supply chain
• The road (women drive cars)
o Billboard advertising
o Radio advertising
• In the home (women are in their homes)
o Direct mail
o TV advertising
• Online (women are on the internet) - Note: A new study finds that
content-rich sites, not social networks, are the hot ticket for brands
marketing to women.
o PR
o Blog outreach
o Online advertising
o social networking
• Magazines (women read magazines)
o Print advertising
• Communities (women participate in their communities)
22. o Public Relations
o Sponsorships
Things that women care about, trust, and respect
• Other women – women are more likely to purchase a brand that
another woman purchased.
o Spokespersons
o Brand ambassadors
• Causes/Sponsorships
o For women
o For children
• Children
o Educational mobile and tablet apps – Note: Per Ad Age, 25%
of toddlers have used a smartphone device in their lifetime.
• Saving money
o Sales promotions
• Manage/Tips
Overall, the main strategy should be to touch the target markets at as many points as
possible, without being annoying. OXYwater should closely control the frequency and
scheduling of each tactic, as well as always include a response method that is clear to
understand. and a call to action that sparks interest and encourages action from the target
market.
o Supply chain – focus on building strong relationships with these middle men, and
taking care of them, since they become your sales representatives at the point of sales
for your consumers. Also, build relationships with supermarkets where women shop
at the most:
Safeway, Kroger, Costco’s, and Wholefoods.
o Billboard advertising
Women ages 18-34 are the most likely demographic to notice outdoor ads.
Location: On major trafficked roads during high driving seasons, as well as by
stores there women can purchase OXYwater.
Work with an outdoor advertiser like CBS Outdoor to determine location,
time of year, and execute the printing and hanging of the ads.
Make sure the ad design speaks to the target audience, the message relates to
the brand and campaign, and the ad provides direction on how to follow up (a
response method).
o Radio advertising - on stations that high volume of women listeners during times of
high traffic (rush hour, for example).
Studies show that live reads have recall and response rates higher than the
typical recorded ad. 26% of listeners are more interested in a product or
business when a DJ endorses it. Although radio advertising can increase top
of mind, 8% of listeners find ads so annoying or intrusive that they simply
turn off the radio, and the effectiveness of the tactic is very difficult to
measure.
Work with a radio advertising consult like Z-100 to develop a script, record,
and package the audio ad.
23. Work with a radio advertiser agent like MediaAssociates to determine
stations, timing, and set up the buying of airtime.
o Direct mail
Outer envelope needs to spark interest to open (or could send postcards), use
white space, limited copy, and clear instructions on how to response/follow
up. Direct mail can be costly, and has about a 2% return rate. Send samples
and coupons to attempt an increase follow up response rates. Sending a
coupon to redeem can increase response rate to 11%.
In 2007 there was a study that showed 85% women preferred being contacted
by brands via direct mail verse email.
Vendors that can help OXYwater obtain targeted mailing addresses and
execute this tactic: Valpak (coupon targeting), SmartSoft (targets moms).
Always include an opt-out option for the recipient.
Keep the environmental impact in mind. This could negatively affect brand
image.
o TV advertising
TV is the most expensive marketing tactic, but can also be the most effective
because it can reach higher volumes in less time than any other tactic.
Opera, Ellen Rachel Ray, The View, CNN network, Bravo network, Food
network, Doctor OZ, Entertainment Tonight.
Hire a ad agency or creative staff member/consultant to design an ad that
portray the brands positioning, identity, and personality in a way that speaks
to the target audience and provides a way for them to follow up (a response
method). The agency should also work with a vendor like Neilson to
determine which shows at what time are most likely to reach women and
mothers.
o PR
Try to build honest relationships with reporters by emailing and calling them
with “news” related information or stories that their audience would care
about reading. Make a list of select reporters that women admire and trust,
and use a PR distributer like PR wire to reach them via email. Reporters of
content sites such as:
Either hire a PR agency to write the press release (for example Squidoo), or
do it in house via the marketing department.
Use PR distribution vendor like Marketwire, PRwire, or Businesswire to get
press release published and to the public.
Also, reach out to reporters and bloggers directly whom you believe would be
most interested in the press release topic. Email them the press release and
offer an interview with OXYwater CEO.
o Blog outreach (posting comments on blogs and articles online)
Famous mommy blogs - http://www.topmommyblogs.com/pages/index.php
Best blogs and websites for women - http://www.forbes.com/2010/06/23/100-
best-womens-blogs-forbes-woman-time-websites.html
Follow the blog outreach code of ethics (written by Ogilvy): build a
relationship with the blogger. Make it clear that you have read the blog post,
24. and have something valuable to offer their audience. Integrate the sales pitch
in a personal way.
o Online advertising
Type of sites – facebook (80% of moms stay in touch with friends and
family), cooking sites (39% of moms cook for fun), shopping sites (42% of
moms buy cloths and shoes online), health sites (52% of moms stay up to date
with health tips and information), and entertainment sites (36% of moms
enjoy reading about celebrities).
Hire a design firm like AKQA (design, and execute ads on the right targeted
sites for your brand), or do it yourself using Canned Banners (design ads) and
work with the publishers directly (make a list of sites, contact them, and sign
contracts with them).
Make sure to include a strong call to action that leads the audience to a way to
purchase OXYwater (an online coupon, online store, or other).
Top 100 websites for women (some have ads on their sites):
http://www.forbes.com/2010/06/23/100-best-womens-blogs-forbes-woman-
time-websites.html
o Social Networking
93% of moms use facebook to stay in touch with their online community.
Post coupons on facebook in effort to move online fans to purchasing
consumers at point of sale.
o Print advertising
Magazines that moms read and are related to the positioning and positioning
segment and brand personality: Working Mother, Wired, Allure, Fast
Company, National Geographic, BusinessWeek, Shape, Sports Illustrated,
Elle, and Food and Wine.
Hire a ad agency or creative staff member/consultant to design an ad that
portray the brands positioning, identity, and personality in a way that speaks
to the target audience and provides a way for them to follow up (a response
method).
o Public Relations
Has a presence, as well as samples, and tangible items that people can take
home with them and keep for long time (t-shirts, hats, pens, balls, etc.) at local
grass roots events.
o Sponsorship/Cause marketing
Breast cancer awareness, female sports leagues, local town league children’s
sport teams, and children Olympics, women marathons.
Work directly with the cause you are sponsoring. Donate at least $100 to the
organization, and then place their logo on the OXYwater website, the
facebook page (either in status updates or add their “cause page”, and think
about added their logo to the OXYwater bottle packaging.
o Spokespersons
An athlete like Nia ham (also a mother), a popular working mom, or even a
military mom.
o Brand ambassadors
Women are great word-of-mouth sources for consumer products.
25. Mommy bloggers, local female athletes, local mothers in communities.
Offer incentives to talk about OXYwater in among their communities.
Use analytic tools like Radian6 (part of Salesforce) to learn who the most
influential people are in the OXYwater social networking spaces like twitter,
LinkedIn, and your blog. Once you know who they are, you can offer them
incentives to talk about OXYwater among their communities.
o Mobile Marketing
Mobile and tablet educational children apps.
A great consumer mobile marketing vendor is iLoop Mobile at
http://www.iloopmobile.com/. iLoop can help you set everything up and
execute every detail.
o Sales promotions
contests, sweepstakes, and coupons
• coupons can be sent to mass volumes of consumers via a
partnership with Groupon and LivingSocial.
Can be a great way to increase hype for a brand, grow brand awareness,
and increase sales in the short term. At the same time, sales promotions
can have a negative long-term effect on a brands image if they occur to
frequently. A sales price can also cannibalize brands potential revenue by
always selling the product for less. A good frequency might be once a
quarter, and during back to school shopping and holidays. Always include
a call to action that makes the audience feel a sense of urgency (limited
time offer), as well as clearly outlined response method (clear instructions
on how to take action and purchase the product).
Each tactic has different costs. Some are more expense to execute than others. Each
tactic has an effect on brand image, but some more effectively grow brand equity, and
others more are more often used to increase sales.
• Brand equity growth tactics: Advertising (outdoor, TV, radio, and online), PR, Direct
mail, Mobile children’s game, social networking, blog outreach, public relations,
cause marketing, brand ambassadors, and spokesperson.
• Sale acquisition growth tactics: Supply chain and sales promotions (like coupons via
Groupon partnership).
I recommend OXYwater chooses to the use tactics that are financially within their
marketing budget capabilities, that more effectively growing brand equity, while also
enable a way to include call to action and response methods that can encourage the target
market to purchase the product. Integrated Marketing Communications (IMC) methods
can be used to do this. For example, integrating blog outreach with sales promotions by
posting a sweepstakes on the comment section of blogs. IMC enables marketers to cross
promote between tactics, and/or promote the existence of a tactic using another tactic.
Examples:
o Integrate a sales promotion and brand ambassadors by sending mommy bloggers
coupons that they can post to their blogs.
26. o Integrate online advertising, social media, and a sales promotion by running an ad
that promotes a sweepstakes, which participants can only enter if, they “like” the
OXYwater facebook page first.
For example, an ad that says - “like” the OXYwater facebook page and win a
chance to go to Rachel Ray show.
o Promote a cause that OXYwater is sponsoring on the packaging and include
instructions on how consumers can get involved.
o Integrate spokesperson with advertising by displaying their image or quote in an ad.
• Measure
Keep tactics that are working. For tactics that are not working (increasing top of mind or
sales), either change 1 variable (1 variable at a time in order to hone in on which variable
changes results), or discontinue the tactics that are not increasing top of mind or sales.
o Supply chain - Sales per location and price that each supermarket sells OXYwater
o Billboard advertising.
o Radio advertising - on stations that high volume of women listeners during times of
high traffic (rush hour, for example).
o Direct mail – how many sales were made using the coupon that was included in the
direct mail.
o TV advertising – Comparing previous verse post sales and use Neilson to track
analytics.
o PR – Mentions in the press.
o Blog outreach – Use Google analytics to understand how many visits to
www.oxywater.com came from content rich sites.
o Online advertising – CTR and CPA using Google’s Doubeclick”.
o social networking – facebeook page fans.
o Print advertising – Comparing previous verse post sales and/or how many sales were
made using the coupon that was included in the direct mail.
o Public Relations - Purchase rate increase or decrease post attendance at a community
event.
o Spokespersons – Compare sales of before and after spokesperson promoted product.
o Brand ambassadors – Compare sales of before and after brand ambassador promoted
product.
o Causes – Compare sales of before and after promotion of the cause OXYwater is
sponsor of.
o Mobile Marketing – use the analytics section of the iLoop Mobile to track response.
o Sales promotions - Compare sales of before and after sales promotion.
(E) Campaign calendar
Campaigns enable internal marketers to stay focused, and build a brand image in a
strategic and mapped out format. Each campaign topic must be inline with brand outline
(portray the positioning and speak to the target market). Finally, during each campaign,
the market tactics and messages used within must be related to the campaign topic. For
example, in October 2011 while executing the campaign “Breast Cancer Awareness
Month” make sure that a all tactics are promoting this topic: facebook posts are about
BCAM, ads are promoting your involvement in BCAM, and sales promotions incorporate
27. the cause (“5% of proceeds will go to Susan G. Komen this month”). Use Integrated
Marketing Communications methods as strategically as possible.
Brand Outline Review:
o Industry - beverage
o Category – bottled water
o Product segment – enhanced
o Positioning – flavored oxygen water
o Positioning segment – hydrating juice substitute
o Target market –the family
o Sub-target market – women (individual and mothers)
o Brand identity – a water for all women; a water that cares about what women care
about; a water for women.
o Brand personality – fun, while also a source of powerful motivation.
Campaign Calendar:
Month Campaign Rational
August 2011 Launch brand publically Introduce the product to
market.
September 2011 Slogan and tagline Explain what the product is
and who it is for.
October 2011 Breast Cancer Awareness
Month
Build an emotional
connection between the
brand and the target market.
November 2011 Spokesperson Speaks to the target market,
increases excitement for the
brand, and shows evidence
that a relatable source
enjoys the brand.
December 2011 Holiday and new year Sales promotions to
increase brand awareness
during a huge shopping
time.
January A water for all women Explain how water for the
family is really water for
women (because women are
the backbones of the family,
supply the family, and need
to do so with clear mind and
active body.
OXYwater cares about
making a water for women
that solves multiple
problems:
#1 OXYwater is a substitute
for sugary juice, plan water
28. #2 OXYwater increases
mentally sharpness and
physically productivity.
February Great flavor taste (for
women, children, and the
entire families)
Detailed promotion on how
this water solves problem
#1 – substitute for sugary
juice and plain water.
March Repeat “flavor” campaign Detailed promotion on how
this water solves problem
#2 – A source for mentally
sharpness and physically
productivity.
April Strength for women Detailed promotion on how
this water solves problem
#2 – A source for mentally
sharpness and physically
productivity.
May Strength for women Detailed promotion on how
this water solves problem
#2 – A source for mentally
sharpness and physically
productivity.
June Summer fun Reinforce the brand
personality and strengthen
the connection between the
brand and women.
July Women’s soccer world cup
& women’s basketball
Portrays support for
powerful women – that if
women want to be
powerful, they drink
OXYwater.
References:
• report published by Global Industry Analysts Inc.
• http://www.marketresearchworld.net/index.php?option=com_content&task=view&id
=610&Itemid=77
• http://www.wcponline.com/pdf/0609Rodwan.pdf
• http://www.bottledwater.org/files/2009BWstats.pdf
• http://www.ehow.com/info_8057686_bottled-water-global-issues.html
• http://www.wwdmag.com/Enhanced-Bottled-Waters-article3356
• http://documents.foodandwaterwatch.org/PureLife-web.pdf
• Roberts, W. "Benefiting Beverages." Prepared Foods August 2009
• http://quickfacts.census.gov/qfd/states/00000.html
• http://www.beveragemarketing.com/?section=news&newsID=111