Developing and Marketing New Products: Ball-tle

1. Prepared By:
Wilson Nunnari
Maggie Schulz
Bryan Wong
Shoney Yakubjanov

2. A Fun-ctional Bottle
We are a fun to use collapsible disposable water bottle
that creates added value in carrying convenience
with a design that conveys function.
Price &
Product Target Test
Industry Distributio Promotion Financials
Changes Market Market
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3. Who We Talked To
Survey:
43 respondents
Ages 17 – 55
Currently using disposable bottled beverages
Interviews:
Parents
High Involvement
Children aged 7 – 14
Active in extra curricular activities
Price &
Product Target Test
Industry Distributio Promotion Financials
Changes Market Market
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4. And the survey said…

5. Emphasis on FUN
73% adult target satisfied with function of current bottle
“My water bottle isn‟t really something I think about... I just use it.”
- Evan, 22
“It‟s fun to smash them up!”
- Alex, 12
Price &
Product Target Test
Industry Distributio Promotion Financials
Changes Market Market
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6. With that in Mind…
Athletic
Adults
Active
Kids
Price &
Product Target Test
Industry Distributio Promotion Financials
Changes Market Market
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7. Not water but still Healthy
Kids like flavor
“If it tastes bad I will just throw it out when my parents
aren‟t looking.”
- Julia, 9
“I would rather have a Gatorade than water.”
- Kevin, 11
Moms like healthy
“I would prefer my kids have healthy beverages. But
the struggle is if they will drink it.”
-Renee, a mom
Price &
Product Target Test
Industry Distributio Promotion Financials
Changes Market Market
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8. A Fun Bottle
We are a fun to use collapsible disposable
beverage bottle that creates added value
by turning a bottle into a toy. Our design
conveys function.
Price &
Product Target Test
Industry Distributio Promotion Financials
Changes Market Market
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9. The Ball-tle
Price &
Product Target Test
Industry Distributio Promotion Financials
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10. Ball-tle Design
16 FL OZ expanded
Re-expandable

11. Fruit Juices & Functional
Beverages
Product
3% 4%
7%
Flavored Waters
36%
12% Ready-to-drink coffees
Energy drinks
13% Sports drinks
Ready-to-drink teas
25% Fruit juices
Other beverages
Price &
Product Target Test
Industry Distributio Promotion Financials
Changes Market Market
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12. A More Flavorful Market
Industry Distribution by Market Share
PepsiCo
35%
40%
Coca-cola
Dr. Pepper - Snapple
19% Group
6%
Other
Price &
Product Target Test
Industry Distributio Promotion Financials
Changes Market Market
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13. Fruit Juices & Functional
Beverages
Flavored Water Market
Revenue $ 864,000,000
Revenue for Coke (Aprox.) $ 159,840,000
Units Sold for Coke (Aprox.) 213,200,000
Price &
Product Target Test
Industry Distributio Promotion Financials
Changes Market Market
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14. Opportunity
Few „vitamin‟ enhanced drinks target kids
Bottle Design and Beverage for
Active kid
Age 7 – 14
Focus on males
Healthy Beverage Appeals to
Involved parents
Price &
Product Target Test
Industry Distributio Promotion Financials
Changes Market Market
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15. More FUNctions
Low % Vitamins High %
Vitamins
Less FUNctions

16. Test Market
Austin, Chicago, and
Seattle
Business
Density
Family
Friendly
Diversity
Price &
Product Target Test
Industry Distributio Promotion Financials
Changes Market Market
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17. Test Market
 Suburban supermarkets
What we will measure in pre, during and post test
market:
 Sales vs.
 estimated sales of competition
 sales of standard Vitamin water
 Cannibalization of other Vitamin water products
 The number of repeat customers per month
 Customer response to price
 Customer preference of normal bottle to Ball-tles
Product
considering price Test
Target
Price &
Industry Distributio Promotion Financials
Changes Market Market
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18. Price
 Bottle Production Cost = $0.04
 Beverage Production Cost = $0.11
 Total Cost of Production/Bottle = $0.15
 Sold in 3 bundle options, single, 4-pack, 20-pack
Percentage of Sales Unit sales/Month Price/Bottle Profit/Bottle
Singles 50% 887,500 $0.85 $0.70
4-packs 30% 532,500 $0.65 $0.50
20-packs 20% 355,000 $0.55 $0.40
Price &
Product Target Test
Industry Distributio Promotion Financials
Changes Market Market
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19. Distribution
With a successful test market we will be able to roll
out nation wide; Considering our existing
distribution Ball-tles will be sold anywhere that
vitamin water is sold
 Utilization of current distribution
 Focusing on suburban areas
Price &
Product Target Test
Industry Distributio Promotion Financials
Changes Market Market
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20. How will they know?

21. Trial-Repeat Model for Market
Share
Market Share = Awareness X Trial X Repeat X Distribution
Price &
Product Target Test
Industry Distributio Promotion Financials
Changes Market Market
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22. Promotion Calendar
August September October November December January
Trade Trade •Trade Allowance •In-store displays •Online Marketing •Online Marketing
Allowance allowance
•Online Marketing •Online Marketing •In-store displays •In-store displays
Online Online
Marketing Marketing •In-store displays •Start sponsoring kid •Christmas •TV ads continue
shows Sweepstakes
In-store In-store •TV ads continue
displays displays •Sponsoring kid
shows
Price Packs In-pack
premiums
February Introduce TV
March April May June July
ads
•Online Marketing Online Online •Online Marketing •Online Marketing •Online Marketing
Marketing Marketing
•In-store displays •In-store displays •In-store displays •In-store displays
In-store In-store
•TV ads continue displays displays •TV ads continue •TV ads continue
TV ads Sponsoring kid
continue shows
Sponsoring kid
shows

23. Product Release
 Time of release: August1st
 Why:
 Climax of summer fun
 Lots of kids playing together outside
 Back to school shopping
 Build awareness before school

24. Introductory Trade Allowance
 To stimulate initial stocking, in-store displays and
feature advertising by the trade
 Duration: three months 20 packs:
 Allowances for retailers:$0.15/bottle
4 packs:
$0.10/bottle
Single bottles:
$0.05/bottle
Total: $452,625 Market Share = Awareness X Trial X Repeat X Distribution

25. Online Marketing
 Goal: drive up awareness and trial
 Social Media: YouTube, FaceBook, Twitter
 Websites and Online TV:
 Disney
 Nick
 Cartoon Network
 SAMPLES =>Increased Traffic
Total: $1,650,000 Market Share = Awareness X Trial X Repeat X Distribution

26. Customer Education: In-Store
Displays
 In-store paper displays demonstrating children
playing with the product
 Grab children‟s attention
 Wacky
 Fun
 Flashy
Market Share = Awareness X Trial X Repeat X Distribution
Total: $1,500,000

27. Call to Action: Price Packs
 Simulate trial by special price packs
$6 off
20
Packs
$1 off 4
packs
Market Share = Awareness X Trial X Repeat X Distribution
Total: $500,000

28. Increasing Trials: In-Pack
Premiums
• Free samples of Ball-tles
sold along with other goods
• For example: Lunchboxes &
school supplies
• Helps create the consumer
association of Ball-tle being
a fun & exciting while
targeting children
Market Share = Awareness X Trial X Repeat X Distribution
Total: $1,000,000

29. Television
 National Advertisements
Target: Boys and tom-girls of ages 7 to 14
Message: Ball-tle is a super-fun must-have product that
will quench your thirst and entertain you for days
Goal: Increase awareness rates
Market Share = Awareness X Trial X Repeat X Distribution
Total: $9,181,818

30. Sponsor Kid Shows
 Develop strategic alliances with Nick, Disney and
Cartoon Network
 Make Ball-T-Le a static part of a show where the
characters always play with it
 Sponsor popular game shows channels where
Ball-T-Le is among the grand prizes
Total: $4,000,000 Market Share = Awareness X Trial X Repeat X Distribution

31. Celebrity Endorsements
 Celebrity: Kobe
Bryant
 Brand connection:
cool, boyish, sporty
 Reason: highly
recognizable and
idolized by children
Total: $2,000,000 Market Share = Awareness X Trial X Repeat X Distribution

32. Christmas Sweepstakes
 Nationwide competition
 Send in a video of how you and your friends have
fun with the Ball-tle
 Football-tle
 Basketball-tle
 Volleyball-tle
 Winner gets all expenses covered to the Super
Bowl
Market Share = Awareness X Trial X Repeat X Distribution
Total: $2,000

33. Promotion Calendar
August September October November December January
Trade Trade •Trade Allowance •In-store displays •Online Marketing •Online Marketing
Allowance allowance
•Online Marketing •Online Marketing •In-store displays •In-store displays
Online Online
Marketing Marketing •In-store displays •Start sponsoring •Christmas •TV ads continue
kid shows Sweepstakes
In-store In-store •TV ads continue
displays displays •Sponsoring kid
shows
Price Packs In-pack
premiums
February Introduce TV
March April May June July
ads
•Online Marketing Online Online •Online Marketing •Online Marketing •Online Marketing
Marketing Marketing
•In-store displays •In-store displays •In-store displays •In-store displays
In-store In-store
•TV ads continue displays displays •TV ads continue •TV ads continue
TV ads Sponsoring kid
continue shows
Sponsoring kid
shows

34. How Sales Work
27 billion market
x 3.2% Flavored Water Vitamin Water Sales 213,000,000
x 18.5% Coca Cola Mkt Share
Ball-tle Water Est Sales 21,300,000
= 159,840,000 Revenue
/.75 Avg Sale Price per unit Ball-tle Water Monthly
= 213,000,000 Estimated # Sales 1,775,000
Sales
Unit Sales/Month Income/Bottle Monthly Gross Profit
Singles (50%)
@ $0.85 per 887500 $0.70 $621250
4-packs (30%)
@ $0.65 per 532500 $0.50 $266250
20-packs (20%)
@ $0.55 per 355000 $0.40 $142000
Total $1029500

35. Pro Forma Income Statement
Revenues
Year One Year Two
2 Years Sales
Cost of Sales
15549000
3195000
15549000
3195000
We will break even in the
Gross Profit 12354000 12354000
8th month of the 2nd year of
operation
SG&A
Trade Allowance 452625 0
Samples 400000 0
Social Media 50000 0
Online TV 1200000 1200000
In-Store Displays 1500000 1500000
Price Packs 500000 500000
In-Pack Premiums 1000000 0
Television 9181818.2 0
Sponsoring kid shows 4000000 0
Celebrity Endorsement 2000000 0
Christmas Sweestakes 2000 0
Total SG&A 20286443.2 3200000
Operating Profit (7932443.20) 9154000.00

36. Thank you!
Questions?

37. Real slides end

39. Price &
Product Target Test
Industry Distributio Promotion Financials
Changes Market Market
n

40. Other uses
 Usable as a squirt gun
 Easy to recycle due to compact size

41. LOGO