gobie h20 final
DESCRIPTION
GH20TRANSCRIPT
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Gobie H2O
MKT 3300 – 005
Jeffrey Chang
Christian Garcia
Jordan Hawkins
Jatin Julakanti
Purushottam Jha Alex Kuhn
Sohaib Shaikh
Sports Marketing
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Bottled water is expensive and harmful for the environment. It costs 1,000x the price of tap water and 3x the price of gasoline per gallon[1]. It takes over a 1000 years to biodegrade[2]
Key Issues
Most reusable water bottles lack stylish design, durability, and proper filtration
Most people don’t drink enough water and dislike the taste water at public facilities. However, would drink more water if they had a better water bottle.
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Background Info[3]
Durable, with flex-flow technology
BPA free, environmentally friendly bottle
Sleek design
Has most advanced carbon filter in market. Removes 99.9% of contaminants in water
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Secondary Data[4] Total Average plastic bottles per person annually 167 bottlesTotal Annual money spent annually on bottled water $15 billionTotal amount of all bottled water sold by Aquafina (Pepsi) and Dasani (Coke) annually 24%
Total percent of U.S. Water Bottle Market owned by Coke and Pepsi 50%
Total amount of bottled water each Coke and Pepsi sell annually
3.36 billion bottles
Total Profit made by Coke and Pepsi each year individually
$336 million
Total amount U.S. spends on bottled water annually $15 billionTotal Global Water Bottle sales annually $50 billion
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Primary DataWe surveyed a sample of athletes, gym goers, and members of other groups who engage in little physical activity.
In our sample, we have 27.47% of people who engage in very high physical activity, 41.3% in medium, and 28.26% in low activity
We have compiled the following information and arrived at conclusions about consumer behaviors pertaining to water bottle purchase
28.26%
41.30%
27.17%
Two - Three (Z) Four - Five (Y) Six - Seven (X)
Moderate Activity (4-5 days)
High Activity (6-7 days)
Low Activity (0-3 days)
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Primary DataWillingness to Buy Product Based on
Engagement in Physical Activity
# of
peo
ple
Level of Physical Activity
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Primary DataWillingness to Buy Product Based on Age
Age
# of
peo
ple
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Primary DataWillingness to Buy Product Based on Daily Water
Consumption
# of
peo
ple
Cups of water consumed per day
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Consumer & Buyer Behavior
Low price and filter replacements are the two biggest factors for those willing to order Gobie H2O[5]
People who engage in physical activities on a regular basis are more willing to buy the product than people who do not engage in physical activities quite often.
People in the age group of 19-33 are more willing to buy the product.
People who are health conscious and prefer filtered water are more willing to order the product at the given price.
Taste, convenience, eco-friendliness are the three important factors that people take into consideration when buying a water bottle[5]
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CompetitionPros Cons
Bottle • BPA free/ non-toxic• Dishwasher safe• User friendly• Extremely Durable• Non-Slip base• Affordable
• Filters needs to be replaced after 3 months or 100 gallons of use.
• Similar products in the market
Filter • Eliminates the chlorine taste and odor from tap water.
• The only 100% compostable filter unit
• Does not filter biological contaminants present in stream, lake or pond water.
Availability • Easy online purchase• No transportation needed
• Available only through its website.
• Delivery charge• Travel time
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Competition
Gobie H2ONestle Ozarka
Aqua FinaDasani
NestleBottled Water
Similar Products
Pure
ContigoThermos
Vapur
Wholesalers
Primo
Glacier
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Perceptual Map
Gobie H2O
Nestle
OzarkaDasaniEvian
Aqua Fina
Contigo
Thermos
Pure
Vapur
Chart Title
Like
Cheap
Like
ExpensiveDislike
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SWOTStrengths Weaknesses Opportunities Threats
• Extremely Durable• High Quality product• Non-toxic• User friendly• Affordable
• Filters needs replacement every three months
• People being health conscious • Eliminates the taste of chlorine and odor present in tap water
• Many similar products in the market• Easily available water bottles like Ozarka, Nestle, Dasnai etc.• New entrants in the market
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SWOT AnalysisStrength (Internal) Weaknesses (Internal)
Opportunities (External)
• Likely to produce greatest return on investment (ROI)
• Better product life and durability
• Committed and confident management
• Competitors have poor products
• Need more sales people
• Need more retail stores
Threats (External) • Threats of new entrants
• Financial pressure• New laws and
regulations
• Many similar products in the market
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Segmentation & TargetingSegmentation:People who engaged in medium to high levels of physical activity throughout the nation.
Targeting:-That are in the middle to upper socioeconomic class -Who have access to gym facilities or exercise regularly-Need and want better alternatives to bottles/ fountains-Who are willing to invest money into said alternative
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Positioning
Specialized• Very powerful
filtration device• Fits any cup
standard holder• Non-slip base• Dishwasher-safe• Very sleek design
Environmentally Friendly• BPA free• Carbon Filter• Compostable filter
cartridge
Ergonomic• Ergonomic
mouth piece• FLEXFLO grip• Comfort finger
loop
Goal: To provide a better water bottle to the public.
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Market Strategy (Diversification)Product Development-To introduce an improved product to fill specific needs and wants of customers-Provide a better alternative to standard water bottles
Product Differentiation-Competitive advantage in having a top end filter in the bottle-Environmentally friendly product and dishwasher-safe
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Product
It also has an ergonomic-mouth piece, comfortable finger loop, and a cap storage.
It is environmentally friendly, dishwasher-safe, and BPA free[1].
The Gobie H2O water bottle is a specialized water bottle with a top-end carbon filter as well as a patented FLEXFLO grip.
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Price
Odd-Even Pricing- Cost of the Gobie H2O is $29.95- Cost of a new filter $9.99- The presumption is that it is over $20 rather
than about $30.
Psychology of Pricing - The odd endings ($29.95)- Buyers feel like they are saving and the
demand goes up.
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Objectives and Elasticity Objectives1. Survival2. Maximize Profit3. Eliminate Bottled Water Waste for a Clean Environment
Constraints 1. Competition 2. Demand for the brand3. Lifecycle Stage
Elasticity:
Reduces PE Increases PE Unique (Filter) Substitutes
Bottled Water(Aquafina, Dasani) Other Water Bottles(Gatorade, PowerAde)
Difficult to Compare
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Selection of MediaMedium Advantage Disadvantage Radio Low cost; can target
specific local audiences; ads can be placed quickly; can use sound, humor, and intimacy effectively.
No visual element; short exposure time and perishable message; difficult to convey complex information
Internet Video and audio capabilities; animation can capture attention; ads can be interactive and link to advertiser. Free using Facebook or Twitter.
Animation and interactivity require large files and it takes a long time to load. Effectiveness is still uncertain.
Outdoor Low cost; local market focus; high visibility; opportunity for repeat exposures.
Message can be short and simple; low selectivity of audience.
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PromotionType Mass or
CustomStrengths Weaknesses Payment
Sales Promotion
Mass Can be changed accordingly
Can be abused and copied
All different kinds
Personal Selling
Custom Choose where to advertise, say what you want and get immediate response
Many variables between who is selling the product
Pay people on salary or commission
Public Relations
Mass Best trusted and relied on
Hard to get media entailed
Varies depending on media
Advertising Mass Best way to get the product out to the public
Hard to tell if it is working and might be expensive
Choose where and for how long to promote
Direct Marketing
Custom Customer friendly and easily created
Expensive to monitor
Costs or communication
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AllocationMedia PriceFacebook FreeTwitter FreeGoogle Adwords $2,000, (25,000 Clicks
120 Days)Promotional Campus Event & Newspaper
$5,000
Apartment Flyers[6] $3,000, 60,000 per month for 2 months
Total $10,000
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Holiday Ads
Facebook Ads
Direct Marketing
Online Sales
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Advertising Time Pattern
Janua
ry
Febua
ryMarc
hAp
ril May June July
Augu
st
Septem
ber
Octobe
r
Novem
ber
Decembe
r0
5000
10000
15000
20000
25000
30000
35000
40000
45000
50000
Sales
Sales
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Direct Marketing
Not only does this save us time but also gets us immediate responses, its cheap and we can choose our target market[7]
We plan on focusing on opinion leaders who carry a high level of influence, like fitness and nutrition experts.
Gobie is targeting professional and collegiate sports programs it has a preference among people who engage in high physical activity.
With direct marketing, data collecting is convenient and efficient[7].
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PlaceGobie H20 is currently sold in only a few retail stores nationwide (right) [8]
It will be expanded to major sports and retail stores nationwide, such as Sports Authority and Walmart
Online ordering is available at http://www.gobieh2o.com/
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Product Life Cycle
Gobie H2O is at the growing stage in the Product Life Cycle-Penetrate market to more outlets-Gain Awareness
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Branding Strategy
Private Branding Strategy- Bottle- Filter- Koozies- Travel Bag
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Success Metrics
Increase sales by 20% by end of December 2014.
Introduce Gobie H20 to major retail stores like Walmart and Target by March 2014.
Successfully direct market to a sports team or opinion leader by June 2014
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Bibliography1. http://money.howstuffworks.com/bling-water1.htm2. http://thewaterproject.org/bottled_water_wasteful.asp3. http://www.gobieh2o.com/pages/how-to4. http://www.treehugger.com/clean-water/the-us-consumes-
1500-plastic-water-bottles-every-second-a-fact-by-watershed.html
5. http://www.statisticbrain.com/bottled-water-statistics/6. http://www.nextdayflyers.com/flyer-printing/4125x525-
flyers.php?mkwid=sfNkJSZXO_dc%7Cpcrid%7C26823264242&gclid=CP-wkrKwhLsCFShk7AodlkoALg&mm_campaign=7EE1041E211F030A3412072F62D66840
7. http://www.switzer.com.au/small-business/business-management/marketing/feature/four-benefits-of-direct-marketing/
8. http://www.gobieh2o.com/pages/find-a-retailer
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“Bottle Water Taste, Without the Lifetime Cost or Waste”