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MARKETING CONSUMER
BEHAVIOR
GROUP 7
Information Facts
Svetlana Kim
Elzbieta Sobieraj
Eyal Shahar
Fuer Zou
Xingbei Jin
Pamela Reynoso
Kate Resnick
TABLEOFCONTENT
1.Background
2.Initial Product Description
3.Experimental Research
4.Target Audience
5.Positioning
6.Planned Market Research
7.Value Proposition
8.Application: Laddering Exercise
9.Final Product Description
VitaminWater
Background
Coca Cola → Glacéau → VitaminWater
Acquired by Coca Cola in 2007 for 4 Billion
An enhanced water made with organic
ingredients, with less sugar & less calories.
Vitamins naturally obtained from fruits.
Initial Product Description
Experimental Research
Findings from Interviews
● Consumers care about nutrition and health
● Think Vitamin Water is too sweet or unhealthy
● Interested in hydration & energy
● Not willing to pay more than $3/bottle
Target Audience
PRIMARY
● Baby Boomers: Representing nearly 20% of
the American population, many senior
baby boomers are parents of Millennials
Millennials: The core target
market for Vitamin Water
are 18-32 year old
Millennials
● Female Household Gatekeeper : This
aging segment of the market is growing
concerned with their health and are
primary grocery shoppers of their
household.
SECONDARY
PositioningStrategy
Healthiness
Price
+
+
-
-
Summary of Planned Market Research Activities
Research Phase Primary LO Secondary LO Key Decision Points
Informed
Value Proposition
(Skin, Immune
System, and
Metabolism
Boosters)
Identify which vitamins are most
important to consumers.
Determine the perception of the existing
product’s level of healthiness.
Learn if consumers value nutritional
benefits over flavor.
Identify if consumers prefer natural
sweeteners and organic ingredients.
Identify possible unmet
needs and wants.
Identify best way to
offer these benefits to
consumers.
Determine the properties of
the proposed product line
(less calories, natural
sweeteners, no
preservatives.)
Replace the product
ingredients to meet
consumers’ needs.
Pricing and Targeting
Determine which market will be the
most interested in purchasing our drink.
Determine a proper price for our
proposed product line.
Learn which
promotional strategies
to use to advertise the
product.
Derive pricing formulas
for different target
markets
Establish the price of the
product.
Develop an advertising
strategy to effectively reach
the target audience.
Packaging Determine how packaging affects
consumers' purchasing choices
Determine how packaging affects
consumers’ perception of the product
N/A Change or keep the
packaging respondents
choose
Taste/Flavor Determine consumer preference for
certain fruit flavors
N/A Keep the flavors
respondents choose
Research Phase Research Population Research
Methodology
Research Protocol
Value Proposition 60x Millennials (18-32
30x Female household gatekeeper
(33-55)
10x Baby boomers
Online Survey Set context for offering
brief introduction to purpose of
study.
Terminate based on screener
questions
Pricing and
Targeting
200x millennials in urban cities
100x mothers in suburbs
Online Survey Determine target market and
population through research
survey a representative sample
Packaging 30x millennials (19-32
12x Female household gatekeeper
(33-55)
Small Focus groups ( 3
participants per
group)
Present variable designs as stimuli
Record initial reactions
Stimulate discussion
Taste/Flavor 30x millennials (19-32) Small Focus groups ( 3
participants per
group)
Prepare test trials
Gauge feedback
Summary of Planned Market Research Activities (cont.)
Phase
Demographic
Information
Key Points
Overall
Product
Line
Nutrition/
Electrolytes
Sweeteners
Taste/
Flavours
# of Respondents: 108 out of
207
Current Gaps:63% Females and
37% Males, Respondents <18
to >32
# of Respondents: 110
Current Gaps: Respondents
<18 and >32, Respondents
<$50K
# of Respondents: 117
Current Gaps: Respondents,
Respondents <18 to >32
# of Respondents: 108
Current Gaps: Respondents
<18 to >32
# of Respondents: 108
Current Gaps: Respondents
<18 to >32
Strong preference for taste and low calories over organic formula. Need of refreshment and hydration.
Increase brand loyalty and consumption, since only 34% respondents purchase the product at least once a
week.
Change positioning strategy to natural enhanced water, since main competitors are Dasani Flavored Water
and Evian Water.
Enhancement of product health benefits and nutritional values to change consumers’ perception to
making a healthy choice and consume the product more than once a week.
The product contains water with two vitamins per bottle without any preservatives, dyes and artificial
flavors. Naturally based enhanced water.
Enhanced with electrolytes such as Potassium , Magnesium, Sodium, Calcium, Phosphorus to meet
consumers’ needs, since 82 % are psychically active individuals (who exercise up to 3 times a week)
Natural source of electrolytes from citruses such as orange and lime.
The product contains natural source of vitamins A, B3, C, B6 derived from strawberry, orange, mango
and lime (70% choose vitamin A, 77% B, 85% C)
The product is naturally sweetened with Agave syrup and only 21 calories per bottle. (59% choose
natural sweeteners)
VitaminWater Lite introduces new flavors such as strawberry, mango, orange and lime & mint (limited
edition )
Flavors based on natural fruit, since 46% out of 108 respondents agreed that VitaminWater tastes like
medicine.
Summary of Value Proposition Market Research
Laddering Exercise: Determining Brand’s Value Proposition
Key Attributes
Taste/
Flavor
Vitamins CaloriesElectrolytes
Functional
Benefits
Natural fruit
eliminates
preservatives
Enrichment
of the flavor
Less sugar=
less
calories
lightly and
natural
sweetened
Enhancement of the
skin
Support vision and
bone growth
Boost Energy Rehydration
Support nerve
and muscle
function
Maintain
physical
balance
Desired Guest
Experience
Rich Natural
Taste
Skin enhancement and
immune system support
Hydration Healthiness
Application of Market Research
Findings – Laddering Exercise
Product Description
1. Enhanced water with only Natural Ingredients.
• No Preservatives
• No Dyes
• No Artificial Flavors
• Naturally Sweetened with Agave Syrup
(21 calories/bottle)
2. Water + Vitamins + Electrolytes
Water enhanced with vitamins and electrolytes from fruits
3. Eco-Friendly Packaging – New Product Line
New Packaging Design
• 40% less plastic
• Water-bottle shaped
● Skin Booster
● Immune System Booster
Vitamins: A, B3, C
Vitamins: B6, C
Flavor: Strawberry Orange Mango
Flavor: Lime and Mint
Extension of Product Line By:
Consumer Behavior Group Project - Vitamin Water

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Consumer Behavior Group Project - Vitamin Water

  • 1. MARKETING CONSUMER BEHAVIOR GROUP 7 Information Facts Svetlana Kim Elzbieta Sobieraj Eyal Shahar Fuer Zou Xingbei Jin Pamela Reynoso Kate Resnick
  • 2. TABLEOFCONTENT 1.Background 2.Initial Product Description 3.Experimental Research 4.Target Audience 5.Positioning 6.Planned Market Research 7.Value Proposition 8.Application: Laddering Exercise 9.Final Product Description
  • 3. VitaminWater Background Coca Cola → Glacéau → VitaminWater Acquired by Coca Cola in 2007 for 4 Billion
  • 4. An enhanced water made with organic ingredients, with less sugar & less calories. Vitamins naturally obtained from fruits. Initial Product Description
  • 5. Experimental Research Findings from Interviews ● Consumers care about nutrition and health ● Think Vitamin Water is too sweet or unhealthy ● Interested in hydration & energy ● Not willing to pay more than $3/bottle
  • 6. Target Audience PRIMARY ● Baby Boomers: Representing nearly 20% of the American population, many senior baby boomers are parents of Millennials Millennials: The core target market for Vitamin Water are 18-32 year old Millennials ● Female Household Gatekeeper : This aging segment of the market is growing concerned with their health and are primary grocery shoppers of their household. SECONDARY
  • 8. Summary of Planned Market Research Activities Research Phase Primary LO Secondary LO Key Decision Points Informed Value Proposition (Skin, Immune System, and Metabolism Boosters) Identify which vitamins are most important to consumers. Determine the perception of the existing product’s level of healthiness. Learn if consumers value nutritional benefits over flavor. Identify if consumers prefer natural sweeteners and organic ingredients. Identify possible unmet needs and wants. Identify best way to offer these benefits to consumers. Determine the properties of the proposed product line (less calories, natural sweeteners, no preservatives.) Replace the product ingredients to meet consumers’ needs. Pricing and Targeting Determine which market will be the most interested in purchasing our drink. Determine a proper price for our proposed product line. Learn which promotional strategies to use to advertise the product. Derive pricing formulas for different target markets Establish the price of the product. Develop an advertising strategy to effectively reach the target audience. Packaging Determine how packaging affects consumers' purchasing choices Determine how packaging affects consumers’ perception of the product N/A Change or keep the packaging respondents choose Taste/Flavor Determine consumer preference for certain fruit flavors N/A Keep the flavors respondents choose
  • 9. Research Phase Research Population Research Methodology Research Protocol Value Proposition 60x Millennials (18-32 30x Female household gatekeeper (33-55) 10x Baby boomers Online Survey Set context for offering brief introduction to purpose of study. Terminate based on screener questions Pricing and Targeting 200x millennials in urban cities 100x mothers in suburbs Online Survey Determine target market and population through research survey a representative sample Packaging 30x millennials (19-32 12x Female household gatekeeper (33-55) Small Focus groups ( 3 participants per group) Present variable designs as stimuli Record initial reactions Stimulate discussion Taste/Flavor 30x millennials (19-32) Small Focus groups ( 3 participants per group) Prepare test trials Gauge feedback Summary of Planned Market Research Activities (cont.)
  • 10. Phase Demographic Information Key Points Overall Product Line Nutrition/ Electrolytes Sweeteners Taste/ Flavours # of Respondents: 108 out of 207 Current Gaps:63% Females and 37% Males, Respondents <18 to >32 # of Respondents: 110 Current Gaps: Respondents <18 and >32, Respondents <$50K # of Respondents: 117 Current Gaps: Respondents, Respondents <18 to >32 # of Respondents: 108 Current Gaps: Respondents <18 to >32 # of Respondents: 108 Current Gaps: Respondents <18 to >32 Strong preference for taste and low calories over organic formula. Need of refreshment and hydration. Increase brand loyalty and consumption, since only 34% respondents purchase the product at least once a week. Change positioning strategy to natural enhanced water, since main competitors are Dasani Flavored Water and Evian Water. Enhancement of product health benefits and nutritional values to change consumers’ perception to making a healthy choice and consume the product more than once a week. The product contains water with two vitamins per bottle without any preservatives, dyes and artificial flavors. Naturally based enhanced water. Enhanced with electrolytes such as Potassium , Magnesium, Sodium, Calcium, Phosphorus to meet consumers’ needs, since 82 % are psychically active individuals (who exercise up to 3 times a week) Natural source of electrolytes from citruses such as orange and lime. The product contains natural source of vitamins A, B3, C, B6 derived from strawberry, orange, mango and lime (70% choose vitamin A, 77% B, 85% C) The product is naturally sweetened with Agave syrup and only 21 calories per bottle. (59% choose natural sweeteners) VitaminWater Lite introduces new flavors such as strawberry, mango, orange and lime & mint (limited edition ) Flavors based on natural fruit, since 46% out of 108 respondents agreed that VitaminWater tastes like medicine. Summary of Value Proposition Market Research
  • 11. Laddering Exercise: Determining Brand’s Value Proposition Key Attributes Taste/ Flavor Vitamins CaloriesElectrolytes Functional Benefits Natural fruit eliminates preservatives Enrichment of the flavor Less sugar= less calories lightly and natural sweetened Enhancement of the skin Support vision and bone growth Boost Energy Rehydration Support nerve and muscle function Maintain physical balance Desired Guest Experience Rich Natural Taste Skin enhancement and immune system support Hydration Healthiness Application of Market Research Findings – Laddering Exercise
  • 12. Product Description 1. Enhanced water with only Natural Ingredients. • No Preservatives • No Dyes • No Artificial Flavors • Naturally Sweetened with Agave Syrup (21 calories/bottle) 2. Water + Vitamins + Electrolytes Water enhanced with vitamins and electrolytes from fruits 3. Eco-Friendly Packaging – New Product Line New Packaging Design • 40% less plastic • Water-bottle shaped
  • 13.
  • 14. ● Skin Booster ● Immune System Booster Vitamins: A, B3, C Vitamins: B6, C Flavor: Strawberry Orange Mango Flavor: Lime and Mint Extension of Product Line By: