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« ADD SOME FLAVOR TO YOUR LIFE »



                 Mar331 – Managerial Marketing
                        Pace University
                     November 29th 2012
XPRESS WATER: A REVOLUTIONARYWAY TO DRINK WATER




             « Water or…? »
THE BOTTLED WATER INDUSTRY HAS A VALUE OF $17,597,300,000




                             Company Shares of Bottled Water by Off-trade Value 2007-2011

                                                       Company                              Share in 2011 (%)
                                             Nestlé Waters North America                           22.7
                                                   Energy Brands Inc                               12.0
                                                     Coca Cola Co.                                 9.0
                                                      PepsiCo Inc                                  5.1
                                                 Wal-Mart Stores Inc                               4.9
MRI Reporter: Fall 2011
                                              DS Waters of America Inc.                            3.8
Product:
Beverages, Bottled Water
                                                   Gatorade Co. Ltd                                3.3
& Seltzer, Drank in Last 6                      Crystal Geyser Roxane                              2.1
Months Flavored, Adults
                                              South Beach Beverage Co.                             1.6
FLAVORED WATER CONSUMERS ARE MOSTLYWOMEN




                                                                                                 • 58.3% are women

                                                                                                 • 40.7% have childrenunder 11y.o.

                                                                                                 • Concerned about health and

                                                                                                       environmental issues




MRI Reporter: Fall 2011 Product: Beverages, Bottled Water & Seltzer, Drank in Last 6 Months Flavored, Adults
XPRESS WATER WILLTARGETWOMEN, AGED BETWEEN 25 AND 54




                             •   48% preferfoodwithoutadditional additives
                             •   Findit harder to resistchildren’srequests
                             •   37% spend>$125 in-store
MRI Reporter: Fall 2011
Product:
                             •   67,7% look around for specialoffers
Beverages, Bottled Water
& Seltzer, Drank in Last 6
Months Flavored, Adults
                             •   31.9% are currentlydieting
THREEAMBITIOUS MARKETING OBJECTIVES




• Achieve $100,000,000 net sales in Year 1

• Raiseproductawareness by 60% in 3 years

• IncreasePepsiCo’s market share by 11.18% in Year 1, 4.41% in Year 2

  and 2.92% in Year 3
XPRESS WATER, GIVING THE CHOICE TO CONSUMERS




  • Innovativepackaging

  • Recycled plastic bottle
A WIDE RANGE OF FLAVORS AND HEALTHATTRIBUTES



                               • A healthybeverage:

                                  – No calories, fat or sugar

                                  – Vitamins C, B6 and B12

                               • 5 refreshingflavors




MRI Reporter: Fall 2011
Product:
Beverages, Bottled Water
& Seltzer, Drank in Last 6
Months Flavored, Adults



          Distinctive positioning on productbenefitswithstrongdifferentialadvantages
AN XPRESS WATER 16OZ. BOTTLE COSTS $0.50 IN
                                                  MANUFACTURING




The Evolution of the Bottled Water Industry, Javier Gimeno, Aon Dirk Verbeek, Karel Cool, INSEAD, 2002, p.23
THE SUGGESTED RETAIL PRICE IS FIXED AT $1.99 WITH MULTIPLE
                                   DISTRIBUTION CHANNELS

                                     Manufacturer to
                                      Retailer (50%)
                                     • $0.49 margin




      Manufacturer to
       Wholesaler to
       Retailer (50%)
      • $0.27 margin
A PROMOTIONAL BUDGET OF $12,000,000



     Type of Promotion     Dollar Amount
     Television            $3,500,000
     Billboards            $2,000,000
     In-Store Promotions   $2,000,000
     Magazines & PR        $1,500,000
     Events                $1,000,000
     Internet              $100,000



• $1,900,000 flexible budget
PRINTCAMPAIGN IN FOOD, HEALTH AND PARENTING MAGAZINES


                                  Theme                         Magazine                                                              Issues per
                                                                                                                                      year
                                  Health                        Women's Health                                                        10

                                  Health                        Natural Health Magazines                                              10

                                  Fitness                       Fitness magazine                                                      11

                                  Food                          Cooking light magazine                                                12

                                  Women                         O, The Oprah Magazine                                                 12

                                  Food                          Weight Watchers Magazine                                              6

                                  Food                          Clean Eating Magazine                                                 6

                                  Parenting                     Hybrid Mom Magazine                                                   4



                               Costs: $1,500,000 per year


                    "Top 10 Fitness Magazines." Allyoucanread. N.p., n.d. Web. 24 Nov. 2012. <http://allyoucanread.com/top-10-fitness-magazines/>.
                    "Top 10 Food Magazines." Allyoucanread. N.p., n.d. Web. 24 Nov. 2012. <http://allyoucanread.com/top-10-food-magazines/>.
                    “Top 10 Parenting Magazines” ." Allyoucanread. N.p., n.d. Web. 24 Nov. 2012. <http://allyoucanread.com/top-10-parenting-magazines/>.
A VERY VISUAL AND SENSUAL 30 SECOND TV SPOT




Channels: Lifetime, Oxygen and Style Media.
PAYBACK IS EXPECTED AFTER 8.14 MONTHS WITH
    BREAK-EVEN QUANTITY OF 77,672,515 UNITS
WORKS CITED



• MRI Reporter: Fall 2011 Product: Beverages, Bottled
  Water & Seltzer, Drank in Last 6 Months Flavored, Adults
• The Evolution of the Bottled Water Industry, Javier
  Gimeno, Aon Dirk Verbeek, Karel Cool, INSEAD, 2002, p.23
• "Top 10 Fitness Magazines." Allyoucanread. N.p., n.d.
  Web. 24 Nov. 2012. <http://allyoucanread.com/top-10-
  fitness-magazines/>.
• "Top 10 Food Magazines." Allyoucanread. N.p., n.d. Web.
  24 Nov. 2012. <http://allyoucanread.com/top-10-food-
  magazines/>.
• “Top 10 ParentingMagazines” ." Allyoucanread. N.p., n.d.
  Web. 24 Nov. 2012. <http://allyoucanread.com/top-10-
  parenting-magazines/>.

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MAR331 - Marketing Plan for New Product Launch: Flavored Xpress Water, Pace University

  • 1. « ADD SOME FLAVOR TO YOUR LIFE » Mar331 – Managerial Marketing Pace University November 29th 2012
  • 2. XPRESS WATER: A REVOLUTIONARYWAY TO DRINK WATER « Water or…? »
  • 3. THE BOTTLED WATER INDUSTRY HAS A VALUE OF $17,597,300,000 Company Shares of Bottled Water by Off-trade Value 2007-2011 Company Share in 2011 (%) Nestlé Waters North America 22.7 Energy Brands Inc 12.0 Coca Cola Co. 9.0 PepsiCo Inc 5.1 Wal-Mart Stores Inc 4.9 MRI Reporter: Fall 2011 DS Waters of America Inc. 3.8 Product: Beverages, Bottled Water Gatorade Co. Ltd 3.3 & Seltzer, Drank in Last 6 Crystal Geyser Roxane 2.1 Months Flavored, Adults South Beach Beverage Co. 1.6
  • 4. FLAVORED WATER CONSUMERS ARE MOSTLYWOMEN • 58.3% are women • 40.7% have childrenunder 11y.o. • Concerned about health and environmental issues MRI Reporter: Fall 2011 Product: Beverages, Bottled Water & Seltzer, Drank in Last 6 Months Flavored, Adults
  • 5. XPRESS WATER WILLTARGETWOMEN, AGED BETWEEN 25 AND 54 • 48% preferfoodwithoutadditional additives • Findit harder to resistchildren’srequests • 37% spend>$125 in-store MRI Reporter: Fall 2011 Product: • 67,7% look around for specialoffers Beverages, Bottled Water & Seltzer, Drank in Last 6 Months Flavored, Adults • 31.9% are currentlydieting
  • 6. THREEAMBITIOUS MARKETING OBJECTIVES • Achieve $100,000,000 net sales in Year 1 • Raiseproductawareness by 60% in 3 years • IncreasePepsiCo’s market share by 11.18% in Year 1, 4.41% in Year 2 and 2.92% in Year 3
  • 7. XPRESS WATER, GIVING THE CHOICE TO CONSUMERS • Innovativepackaging • Recycled plastic bottle
  • 8. A WIDE RANGE OF FLAVORS AND HEALTHATTRIBUTES • A healthybeverage: – No calories, fat or sugar – Vitamins C, B6 and B12 • 5 refreshingflavors MRI Reporter: Fall 2011 Product: Beverages, Bottled Water & Seltzer, Drank in Last 6 Months Flavored, Adults Distinctive positioning on productbenefitswithstrongdifferentialadvantages
  • 9. AN XPRESS WATER 16OZ. BOTTLE COSTS $0.50 IN MANUFACTURING The Evolution of the Bottled Water Industry, Javier Gimeno, Aon Dirk Verbeek, Karel Cool, INSEAD, 2002, p.23
  • 10. THE SUGGESTED RETAIL PRICE IS FIXED AT $1.99 WITH MULTIPLE DISTRIBUTION CHANNELS Manufacturer to Retailer (50%) • $0.49 margin Manufacturer to Wholesaler to Retailer (50%) • $0.27 margin
  • 11. A PROMOTIONAL BUDGET OF $12,000,000 Type of Promotion Dollar Amount Television $3,500,000 Billboards $2,000,000 In-Store Promotions $2,000,000 Magazines & PR $1,500,000 Events $1,000,000 Internet $100,000 • $1,900,000 flexible budget
  • 12. PRINTCAMPAIGN IN FOOD, HEALTH AND PARENTING MAGAZINES Theme Magazine Issues per year Health Women's Health 10 Health Natural Health Magazines 10 Fitness Fitness magazine 11 Food Cooking light magazine 12 Women O, The Oprah Magazine 12 Food Weight Watchers Magazine 6 Food Clean Eating Magazine 6 Parenting Hybrid Mom Magazine 4 Costs: $1,500,000 per year "Top 10 Fitness Magazines." Allyoucanread. N.p., n.d. Web. 24 Nov. 2012. <http://allyoucanread.com/top-10-fitness-magazines/>. "Top 10 Food Magazines." Allyoucanread. N.p., n.d. Web. 24 Nov. 2012. <http://allyoucanread.com/top-10-food-magazines/>. “Top 10 Parenting Magazines” ." Allyoucanread. N.p., n.d. Web. 24 Nov. 2012. <http://allyoucanread.com/top-10-parenting-magazines/>.
  • 13. A VERY VISUAL AND SENSUAL 30 SECOND TV SPOT Channels: Lifetime, Oxygen and Style Media.
  • 14. PAYBACK IS EXPECTED AFTER 8.14 MONTHS WITH BREAK-EVEN QUANTITY OF 77,672,515 UNITS
  • 15. WORKS CITED • MRI Reporter: Fall 2011 Product: Beverages, Bottled Water & Seltzer, Drank in Last 6 Months Flavored, Adults • The Evolution of the Bottled Water Industry, Javier Gimeno, Aon Dirk Verbeek, Karel Cool, INSEAD, 2002, p.23 • "Top 10 Fitness Magazines." Allyoucanread. N.p., n.d. Web. 24 Nov. 2012. <http://allyoucanread.com/top-10- fitness-magazines/>. • "Top 10 Food Magazines." Allyoucanread. N.p., n.d. Web. 24 Nov. 2012. <http://allyoucanread.com/top-10-food- magazines/>. • “Top 10 ParentingMagazines” ." Allyoucanread. N.p., n.d. Web. 24 Nov. 2012. <http://allyoucanread.com/top-10- parenting-magazines/>.