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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
TA
BL
E O
F C
ON
TE
NT
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
Po
sitio
nin
g S
trate
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Healthiness
Price
+
+
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Summary of Planned Market Research Activities
Research Phase Primary LO Secondary LO Key Decision Points Informed
Value Proposition (Skin, Immune System, andMetabolism 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 TargetingDetermine 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 offeringbrief 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 researchsurvey a representative sample
Packaging 30x millennials (19-3212x 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.)
PhaseDemographic 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 AttributesTaste/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:
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