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Marketing Research For A New Bottled Water Launch

Marketing Research For A New Bottled Water Launch. Mandy Mazzotta Edward Pecelli Lyndsay Rogers Rick Van Dyke Charlie Wolf. The Marketing Problem. Our company is developing and launching a new bottled water Our team’s task is to help the Marketing Department understand the marketplace

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Marketing Research For A New Bottled Water Launch

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  1. Marketing Research For A New Bottled Water Launch Mandy Mazzotta Edward Pecelli Lyndsay Rogers Rick Van Dyke Charlie Wolf

  2. The Marketing Problem • Our company is developing and launching a new bottled water • Our team’s task is to help the Marketing Department understand the marketplace • Descriptive Research • Who is the consumer? • What do they prefer? • What do they dislike? • Will they buy bottled water? • What are their needs?

  3. The Marketing Problem • What will be our VALUE PROPOSITION? • What VALUE can we bring to the bottled water consumer? • How can we differentiate our product in this $5.7 billion market (year 2000 figure)

  4. Some Facts about Water (Secondary Research) • Single most abundant substance in the human body: 60% of adult weight (80% of infant) • Many health benefits • Cold water is absorbed more quickly • At normal activity levels people lose 2-3 cups of water per day in perspiration; vigorous exercise = 1 quart

  5. Dehydration Problem • Hydration is becoming a public health issue • Need at least 2L of water per day • 70% of preschool children drink no water during the day: fatigue, constipation • 33% of what Americans drink causes dehydration (coffee, soft drinks, beer) • Nearly 10% say they don’t drink water at all

  6. Why The Problem? • 73% of Americans know health experts recommend 64oz of water per day. • Yet more than 50% admit to not drinking enough water. • #1 reason: “Too busy!”

  7. Un-Met Needs • Need for Health • Need for Convenience • Need for Healthy Alternatives to current habits and practices • There appears to be plenty of room for growth in the industry.

  8. Hypothesis Testing • We believe that more than half of the consumers of bottled water are 25 to 40. • We believe they are “health conscious.” • We believe they are more affluent. • We believe that people who do not trust their own water supply buy more water. • People are willing to pay a premium.

  9. The Questionnaire • Used on-line format • Insitefulsurveys.com • Email with a link to the survey • Pretest: 8 Respondents gave feedback: • Repetitious • Systematic Error: keep scales consistent • Introduction of “Brita problem” • “Closed” many more questions: • Job type • Salary • Race

  10. The Questionnaire: Final Version • 154 sent/128 responses • 34 Questions • 18 Nominal • 6 Ordinal • 5 Interval • 5 Ratio

  11. No relationship between Do you Drink Tap Water and Water Supply Trust

  12. No relationship between Water Supply Trust and Buying More Bottled Water

  13. Healthy People Eat Healthy • 50% of those surveyed are healthy

  14. Healthy People Buy Water

  15. Why Do People Buy Beverages? Why Bottled Water?

  16. Why Buy Beverages? Why Buy Water?

  17. No specific correlation between people’s choice of water over other beverages and their rationale. Ex. Staying hydrated vs. Choosing water: Pearson Correlation = 0.122, Kendall’s tau_b = 0.127

  18. Marketing Mix • PRODUCT • Most popular sizes are 0.5 and 1L bottles • PLACE: • 75% buy BW in the grocery store • 23.3% buy BW at convenience markets • 20% only buy when travelling

  19. Marketing Mix, Con’t • PRICE • Assuming Psoftdrink=$0.65, avg. price willing to pay for 1L bottle of water is $1.00 (+/-$0.30). • PROMOTION • 71% do not buy a specific brand, suggests low brand loyalty in this category.

  20. Marketing Mix, Con’t PROMOTION (con’t): Our plan to differentiate: Avoid mass media advertising, focus on quality, taste and maintain low price. (Use coupons to build original awareness)

  21. Marketing Surprises • >50% of health conscious buy rarely or only when travel • >40% of those who exercise >3x per week drink rarely or only when travel • Only 35% of people sampled buy >1x per week!

  22. Demographics:Who is buying bottled water? • Residence

  23. Who is buying bottled water? • Household income

  24. Who is buying bottled water? • Gender • 42% Male • 58% Female • Age

  25. Deliverable to Marketing Dept • Convenience, Quality, Price, and Taste • Multi-packs, multi-sizes • POS opportunities: “at arm’s length” • Clean image, name, labels • Add line with natural flavors: taste = #1 reason • Mid-level pricing but affluent “feel”

  26. Deliverable to Marketing Dept • Type of consumer • Still target health conscious consumer • Ads in running and sport magazines • Sponsor health agencies, sporting events, hobbies • Target convenience users • POS displays; vending machines • Travelers: airports, train stations, rest stops • Low loyalty – still can enter the market

  27. Key Learning Points • Needed more even distribution of age • Lack of ethnic diversity • Income: household vs. individual • Ignored environment question • Limitation of computer users

  28. Thank You Questions?

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