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PRESENTED BY:
AYUSHA MITTAL
GLACEAU
or Energy Brands, an autonomous
subsidiary of Coca-Cola
J. DARIUS BIKOFF
Founded in 1996, sold to Coca-Cola in 2007,
current CEO
MIKE REPOLE
Current President
MADISON AVE, NYC
ENHANCED WATER
Smartwater, Vitaminwater, VitaminZero,
Sparkling Smartwater
headquarters of Energy Brands
250
number of employees
http://www.mergentonline.com.ezproxy.bu.edu/privatecompanydetail.php?dunsnumber=176138063#
http://www.bloomberg.com/research/stocks/private/snapshot.asp?privcapId=4399679
INSPIRED BY THE CLOUDS
SOURCES
$$$
http://www.drinksmartwater.com/assets/92133ca/pdf/smartwater_water_quality.pdf
http://www.bottledwater.org/economics/real-cost-of-bottled-water
http://www.coca-colacompany.com/brands/product-description#glacéau%20smartwater
http://clients1.ibisworld.com.ezproxy.bu.edu/reports/us/industry/productsandmarkets.aspx?entid=286
SOURCES
Selling water procured from
municipal water system.
Filtered using a vapor-distillation
method and then electrolytes added.
Jennifer Aniston is current
spokesperson.
Grocery stores, supermarkets, and
convenience stores.
Sold in food service and dining
establishments.
Priced at more than a 250,000%
markup from cost.
http://clients1.ibisworld.com.ezproxy.bu.edu/reports/us/industry/majorcompanies.aspx?entid=286
http://www.bottledwater.org/economics/industry-statistics
SOURCES
US BOTTLED WATER
PRODUCTION
STILL WATER
SPARKLING WATER
CONSIDERABLE
COMPETITION
Primary activities include
purifying and bottling water,
purifying and bottling
carbonated water, labeling
bottled water product,
promoting bottled water
brands.
Major products and services in
this industry are still water,
flavored water, sparkling water,
and manufactured ice. We are
interested in Smartwater, which
includes still and sparkling
water production.
Parent brand, Coca-Cola, is not
the market leader with only
10.4% market share. Faces
severe competition from Nestle
(39.7%) and close competitor
Pepsi (10.6%).
http://clients1.ibisworld.com.ezproxy.bu.edu/reports/us/industry/industryoutlook.aspx?entid=286
http://academic.mintel.com.ezproxy.bu.edu/display/760408/
SOURCES
Environmental-friendly packaging, as well as recyclable and
reusable bottles.
Savings from using less material and reusing existing
packaging could drive down plastic and resin market prices.
Reflects values of core consumers, which is the 18-44 urban
demographic.
Conversion of consumers from water filtration systems to
bottled water by presenting it as an eco-friendly alternative.
INDUSTRY REVENUE IS
PROJECTED TO INCREASE
2.5% IN 2016.
GROWTH OPPORTUNITY:
GOING GREEN, PROMOTING HEALTHY
LIFESTYLES
http://academic.mintel.com.ezproxy.bu.edu/display/760414/?highlight#hit1
http://academic.mintel.com.ezproxy.bu.edu/display/760408/
SOURCES
CONSUMERS THAT REPRESENT
BIGGEST OPPORTUNITY:
MALE, FEMALES 18-39
Increasingly environmental conscious - prefer water filtration
system to bottled water.
Increasingly health conscious - prefer unflavored and still
water to sugary alternatives.
Increasing demand due to increasing per capita disposable
income.
Name brand bottled water is important - but too many
options in the category are overwhelming.
Value price, convenience, and fashion - key economic
drivers for the industry.
DRIVE CONSIDERATION
TO PROCURE GREATER
MARKET SHARE
TARGET AUDIENCE
These college students, urban city dwellers, and young professionals are always on-
the-go. They are juggling lots of responsibilities between work, colleagues, friends,
and family. Convenience is king, and they are used to getting most things with a touch
of a button. They are politically, socially, and environmentally active, and are the
biggest advocators of socio-economic change. This demographic is ethnically and
culturally diverse, reflective of current American urban city landscape. They are
fashionable and trendy, and are increasingly brand conscious thanks to the rise in
social media usage.
MALE AND FEMALE CONSUMERS AGED 18-39, REPRESENTING GENZ AND MILLENNIALS.
SOURCES
http://academic.mintel.com.ezproxy.bu.edu/display/760408/
SOURCES
http://academic.mintel.com.ezproxy.bu.edu/display/749759/?highlight
http://academic.mintel.com.ezproxy.bu.edu/display/787615/
http://www.nielsen.com/us/en/insights/news/2016/facts-of-life-as-they-move-through-life-stages-millennials-media-habits-are-different.html
http://academic.mintel.com.ezproxy.bu.edu/display/782434/
COMMUNICATION CHANNELS
ONLINE/SOCIAL MEDIA MOBILE/APPS OUTDOOR/PRINTNETWORK TV/CABLE MUSIC STREAMING
Streaming of music
increase over 20% since
2013. Popular platforms
include Apple Music,
Spotify, Pandora, Google
Play, Slacker, YouTube.
In 2015, 65% of
Americans were
smartphone users.
Increase in casual
gaming, 37% higher than
in 2013, has led to in-app
advertising. iPopular
apps include Facebook,
Instagram, Snapchat,
WhatsApp amongst
others.
Streaming content trumps
physical media. Social media
usage is highest amongst this
demographic that dominates
Facebook, Twitter, and Instagram.
Other social media platforms
include YouTube, Reddit, Tumblr,
Periscope, and Vine. They are
also browse websites like
Mashable, NYT, Business Insider
etc. for news. In addition, a
massive multiplayer online
gaming community, 131% higher
than in 2013, could be targeted
online.
City dwellers mean
commuters accessing
public transportation.
Penetration through
subway and bus shelter
advertising, guerrilla
marketing on busy
streets, and free
giveaways.
Although there is a rise in streaming
services, the demographic, network
and cable television still lead
consumer viewing habits by 55%.
Netflix maintains the lead 43% but
pther streaming services have also
achieved significant market
penetration, with 37% viewing short
videos online, 26% using Amazon
Prime, and 19% using Hulu or Hulu
Plus
SOURCES
•Mergent Online: http://www.mergentonline.com.ezproxy.bu.edu/privatecompanydetail.php?dunsnumber=176138063#
•Bloomberg: http://www.bloomberg.com/research/stocks/private/snapshot.asp?privcapId=4399679
•Smartwater website: http://www.drinksmartwater.com/assets/92133ca/pdf/smartwater_water_quality.pdf
•IBWA (International Bottled Water Association) :
http://www.bottledwater.org/economics/real-cost-of-bottled-water
http://www.bottledwater.org/economics/industry-statistics
•Coca-Cola Brands: http://www.coca-colacompany.com/brands/product-description#glacéau%20smartwater
•Nielsen: http://www.nielsen.com/us/en/insights/news/2016/facts-of-life-as-they-move-through-life-stages-millennials-media-habits-
are-different.html
•IBIS World:
http://clients1.ibisworld.com.ezproxy.bu.edu/reports/us/industry/productsandmarkets.aspx?entid=286
http://clients1.ibisworld.com.ezproxy.bu.edu/reports/us/industry/majorcompanies.aspx?entid=286
http://clients1.ibisworld.com.ezproxy.bu.edu/reports/us/industry/industryoutlook.aspx?entid=286
•Mintel Academic:
http://academic.mintel.com.ezproxy.bu.edu/display/760408/
http://academic.mintel.com.ezproxy.bu.edu/display/760414/?highlight#hit1
http://academic.mintel.com.ezproxy.bu.edu/display/760408/
http://academic.mintel.com.ezproxy.bu.edu/display/760408/
http://academic.mintel.com.ezproxy.bu.edu/display/749759/?highlight
http://academic.mintel.com.ezproxy.bu.edu/display/787615/
http://academic.mintel.com.ezproxy.bu.edu/display/782434/

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Smartwater: Brief