MARKETING CONSUMER

BEHAVIOR

GROUP 7

Information Facts

Svetlana Kim

Elzbieta Sobieraj

Eyal Shahar

Fuer Zou

Xingbei Jin

Pamela Reynoso

Kate Resnick

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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

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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: