-
8/3/2019 The Case Highlights the Marketing Strategies of US Based Energy Brands Inc
1/13
The case highlights the marketing strategies of
US based Energy Brands Inc., maker of the
Glacau range of 'enhanced water' products.
Glacau's Vitaminwater was highly successful
and in some markets in the US, it outsold Dasani
and Aquafina. Vitaminwater was different from
other products, in several aspects including
packaging, appearance, labels and ingredients; it
was a category creator.
Vitaminwater was promoted through Vehicle
Marketing Program, Retail Sampling Program,
banners & posters, and 'Campus Ambassadors,'
a college outreach program. By 2006, several
famous celebrities from sports and
entertainment arena endorsed Glacau products.
The case also describes Glacau's unique distribution strategies. Notwithstanding the success
of Vitaminwater, industry experts felt that the product may face stiff competition from the
established players in the industry like Coca-Cola and Pepsi, which were launching their own
line of 'enhanced water' products owing to there growing popularity.
Issues:
Understand the marketing mix adopted by Glacau for Vitaminwater
Critically examine the promotion and distribution strategies for Vitaminwater
Analyze the factors that helped Glacau carve a niche for itself in a saturated beverages
market in the US
Examine the challenges Glacau may face from established players
-
8/3/2019 The Case Highlights the Marketing Strategies of US Based Energy Brands Inc
2/13
.
Glacau: Marketing
VitaminwaterCase Details
Case Intro 1
Case Intro 2
Excerpts
++ Font|Font --
ICMR HOME|Case Studies
Collection
Case Details:
Case Code : MKTG166
Case Length : 18 Pages
Period : 2002-07
Pub Date : 2007
Teaching Note :Not Available
Organization : Energy Brands Inc.
Industry : Packaged Water
Countries : US
To download Glacau: Marketing
Vitaminwater case study (Case
Code: MKTG166) click on the
button below, and select the case from
the list of available cases:
Price:
For delivery in electronic format: Rs.
300;
For delivery through courier (within
India): Rs. 300 + Rs. 25 for Shipping
-
8/3/2019 The Case Highlights the Marketing Strategies of US Based Energy Brands Inc
3/13
"Vitaminwater has
hit those three
rongs (physical,
emotional and
spiritual) by
balancing the
spiritual need o
overall health and
wellness with the
hysical o
refreshment and the
vitamins that you
need, plus the
emotional with the
ackaging having
words on it that are
cheeky and fun. I
think it's one of the
best new product
introductions that
I've seen in the last
ew years."3
- Heather Dupre,
Director
Innovation,Kindred Keziah
4,
in 2005.
Introduction
In September
2006, PepsiCo
Inc.
& Handling Charges
Gadgetspowered by Google
Marketing Case Studies
Marketing Management Short Case
Studies
View Detailed Pricing Info
How To Order This Case
Business Case Studies
Case Studies by Area
Case Studies by Industry
Case Studies by Company
Search
Please note:
This case study was compiled frompublished sources, and is intended to
be used as a basis for class discussion.
It is not intended to illustrate either
effective or ineffective handling of a
management situation. Nor is it a
primary information source.
http://www.icmrindia.org/casestudies/catalogue/Marketing/Glac%C3%A9au%20Marketing%20Vitaminwater%20Case%20Study.htm#3]http://www.icmrindia.org/casestudies/catalogue/Marketing/Glac%C3%A9au%20Marketing%20Vitaminwater%20Case%20Study.htm#3]http://www.icmrindia.org/casestudies/catalogue/Marketing/Glac%C3%A9au%20Marketing%20Vitaminwater%20Case%20Study.htm#3]http://www.icmrindia.org/casestudies/catalogue/Marketing/Glac%C3%A9au%20Marketing%20Vitaminwater%20Case%20Study.htm#4]http://www.icmrindia.org/casestudies/catalogue/Marketing/Glac%C3%A9au%20Marketing%20Vitaminwater%20Case%20Study.htm#4]http://www.google.com/webmasters/gadgets.htmlhttp://www.google.com/webmasters/gadgets.htmlhttp://www.icmrindia.org/casestudies/Case_Studies.asp?cat=Marketinghttp://www.icmrindia.org/casestudies/Case_Studies.asp?cat=Marketinghttp://www.icmrindia.org/casestudies/Case_Studies.asp?cat=Marketinghttp://www.icmrindia.org/Short%20Case%20Studies/Short%20Case%20Studies.asp?cat=Marketing%20Managementhttp://www.icmrindia.org/Short%20Case%20Studies/Short%20Case%20Studies.asp?cat=Marketing%20Managementhttp://www.icmrindia.org/Short%20Case%20Studies/Short%20Case%20Studies.asp?cat=Marketing%20Managementhttp://www.icmrindia.org/Short%20Case%20Studies/Short%20Case%20Studies.asp?cat=Marketing%20Managementhttp://www.icmrindia.org/casestudies/case_pricing.htmhttp://www.icmrindia.org/casestudies/case_pricing.htmhttp://www.icmrindia.org/casestudies/case_pricing.htmhttp://www.icmrindia.org/casestudies/howtoorder.htmhttp://www.icmrindia.org/casestudies/howtoorder.htmhttp://www.icmrindia.org/casestudies/howtoorder.htmhttp://www.icmrindia.org/casestudies/Business.asp?cat=Business%20case%20Studieshttp://www.icmrindia.org/casestudies/Business.asp?cat=Business%20case%20Studieshttp://www.icmrindia.org/casestudies/Business.asp?cat=Business%20case%20Studieshttp://www.icmrindia.org/casestudies/Case_Studies_Concept_Wise.asphttp://www.icmrindia.org/casestudies/Case_Studies_Concept_Wise.asphttp://www.icmrindia.org/casestudies/Case_Studies_Concept_Wise.asphttp://www.icmrindia.org/casestudies/Case_Studies_Industry_Wise.asphttp://www.icmrindia.org/casestudies/Case_Studies_Industry_Wise.asphttp://www.icmrindia.org/casestudies/Case_Studies_Industry_Wise.asphttp://www.icmrindia.org/casestudies/Case_Studies_Company_Wise.asphttp://www.icmrindia.org/casestudies/Case_Studies_Company_Wise.asphttp://www.icmrindia.org/casestudies/Case_Studies_Company_Wise.asphttp://www.icmrindia.org/casestudies/catalogue/paypal/Marketing/Glac%C3%A9au%20Paypal.htmhttp://fusion.google.com/ig/add?synd=open&source=ggyp&moduleurl=http://www.google.com/ig/modules/translatemypage.xmlhttp://www.icmrindia.org/casestudies/catalogue/paypal/Marketing/Glac%C3%A9au%20Paypal.htmhttp://fusion.google.com/ig/add?synd=open&source=ggyp&moduleurl=http://www.google.com/ig/modules/translatemypage.xmlhttp://www.icmrindia.org/casestudies/Case_Studies_Company_Wise.asphttp://www.icmrindia.org/casestudies/Case_Studies_Industry_Wise.asphttp://www.icmrindia.org/casestudies/Case_Studies_Concept_Wise.asphttp://www.icmrindia.org/casestudies/Business.asp?cat=Business%20case%20Studieshttp://www.icmrindia.org/casestudies/howtoorder.htmhttp://www.icmrindia.org/casestudies/case_pricing.htmhttp://www.icmrindia.org/Short%20Case%20Studies/Short%20Case%20Studies.asp?cat=Marketing%20Managementhttp://www.icmrindia.org/Short%20Case%20Studies/Short%20Case%20Studies.asp?cat=Marketing%20Managementhttp://www.icmrindia.org/casestudies/Case_Studies.asp?cat=Marketinghttp://www.google.com/webmasters/gadgets.htmlhttp://www.icmrindia.org/casestudies/catalogue/Marketing/Glac%C3%A9au%20Marketing%20Vitaminwater%20Case%20Study.htm#4]http://www.icmrindia.org/casestudies/catalogue/Marketing/Glac%C3%A9au%20Marketing%20Vitaminwater%20Case%20Study.htm#3] -
8/3/2019 The Case Highlights the Marketing Strategies of US Based Energy Brands Inc
4/13
(Pepsi)5announced
that it had agreed
to change the
packaging, label,
and cap of its
SoBe Life Water6,
as per the
settlement it had
reached with
Energy Brands
Inc., (Energy
Brands), maker of
the Glacau range
of enhanced water
products.
In April 2006,
Energy Brands
Inc. had filed a
lawsuit against
Pepsi, alleging
that SoBe Life
Water's
packaging, label,
and cap were
similar to those of
Glacau
vitaminwater and
that Pepsi
intended to
confuse the
consumers with its
new packaging.
http://www.icmrindia.org/casestudies/catalogue/Marketing/Glac%C3%A9au%20Marketing%20Vitaminwater%20Case%20Study.htm#5]http://www.icmrindia.org/casestudies/catalogue/Marketing/Glac%C3%A9au%20Marketing%20Vitaminwater%20Case%20Study.htm#5]http://www.icmrindia.org/casestudies/catalogue/Marketing/Glac%C3%A9au%20Marketing%20Vitaminwater%20Case%20Study.htm#6]http://www.icmrindia.org/casestudies/catalogue/Marketing/Glac%C3%A9au%20Marketing%20Vitaminwater%20Case%20Study.htm#6]http://www.icmrindia.org/casestudies/catalogue/Marketing/Glac%C3%A9au%20Marketing%20Vitaminwater%20Case%20Study.htm#6]http://www.icmrindia.org/casestudies/catalogue/Marketing/Glac%C3%A9au%20Marketing%20Vitaminwater%20Case%20Study.htm#6]http://www.icmrindia.org/casestudies/catalogue/Marketing/Glac%C3%A9au%20Marketing%20Vitaminwater%20Case%20Study.htm#5] -
8/3/2019 The Case Highlights the Marketing Strategies of US Based Energy Brands Inc
5/13
As per the lawsuit,
Pepsi had resorted
to trade dress
infringement and
dilution and its
label and bottle
resembled that of
vitaminwater.
It was also alleged
that Pepsi had
launched SoBe Life
Water after it failed
to acquire Energy
Brands in early
2006.
On reaching
the settlement
with Pepsi,
Founder CEO
of Energy
Brands, Darius
Bikoff
(Bikoff), said,
"We were
pleased with
the overall
settlement.
There has
been a history
of attempts to
ride the
success of
-
8/3/2019 The Case Highlights the Marketing Strategies of US Based Energy Brands Inc
6/13
vitaminwater's
coat tails. And
it is kind of a
shame because
I think our
competitors
are better
served trying
to come up
with their own
innovation..."7
Analysts
opined that the
lawsuit and its
subsequent
settlement
indicated the
growing
insecurity of
the soft drink
majors, which
were facing a
threat from
companies
promoting
healthy
alternatives to
soft drinks.
http://www.icmrindia.org/casestudies/catalogue/Marketing/Glac%C3%A9au%20Marketing%20Vitaminwater%20Case%20Study.htm#7]http://www.icmrindia.org/casestudies/catalogue/Marketing/Glac%C3%A9au%20Marketing%20Vitaminwater%20Case%20Study.htm#7]http://www.icmrindia.org/casestudies/catalogue/Marketing/Glac%C3%A9au%20Marketing%20Vitaminwater%20Case%20Study.htm#7]http://www.icmrindia.org/casestudies/catalogue/Marketing/Glac%C3%A9au%20Marketing%20Vitaminwater%20Case%20Study.htm#7] -
8/3/2019 The Case Highlights the Marketing Strategies of US Based Energy Brands Inc
7/13
Glacau: Marketing
Vitaminwater
Case Details
Case Intro 1
Case Intro 2
Excerpts
++ Font|Font --
ICMR HOME|Case Studies
Collection
Case Details:
Case Code : MKTG166
Case Length : 18 Pages
Period : 2002-07
Pub Date : 2007
Teaching Note :Not Available
Organization : Energy Brands Inc.
Industry : Packaged Water
Countries : US
To download Glacau: Marketing
Vitaminwater case study (Case
-
8/3/2019 The Case Highlights the Marketing Strategies of US Based Energy Brands Inc
8/13
which
advocated
healthy living
through low-
calorie, low
sugar drinks,
and non-
carbonated
water with
additional
nutritional
supplements.
Glacau's line
of enhanced
water
products
comprised
vitaminwater,
Smartwater,
and
Fruitwater.
Energy
Brands was
credited with
creating a
new category
of drinks
popularly
known as
'enhanced
water
products.'
According to
Code: MKTG166) click on the
button below, and select the case from
the list of available cases:
Price:
For delivery in electronic format: Rs.
300;
For delivery through courier (within
India): Rs. 300 + Rs. 25 for Shipping& Handling Charges
Gadgetspowered by Google
Marketing Case Studies
Marketing Management Short Case
Studies
View Detailed Pricing Info
How To Order This Case
Business Case Studies
Case Studies by Area
Case Studies by Industry
Case Studies by Company
Search
http://www.google.com/webmasters/gadgets.htmlhttp://www.google.com/webmasters/gadgets.htmlhttp://www.icmrindia.org/casestudies/Case_Studies.asp?cat=Marketinghttp://www.icmrindia.org/casestudies/Case_Studies.asp?cat=Marketinghttp://www.icmrindia.org/casestudies/Case_Studies.asp?cat=Marketinghttp://www.icmrindia.org/Short%20Case%20Studies/Short%20Case%20Studies.asp?cat=Marketing%20Managementhttp://www.icmrindia.org/Short%20Case%20Studies/Short%20Case%20Studies.asp?cat=Marketing%20Managementhttp://www.icmrindia.org/Short%20Case%20Studies/Short%20Case%20Studies.asp?cat=Marketing%20Managementhttp://www.icmrindia.org/Short%20Case%20Studies/Short%20Case%20Studies.asp?cat=Marketing%20Managementhttp://www.icmrindia.org/casestudies/case_pricing.htmhttp://www.icmrindia.org/casestudies/case_pricing.htmhttp://www.icmrindia.org/casestudies/case_pricing.htmhttp://www.icmrindia.org/casestudies/howtoorder.htmhttp://www.icmrindia.org/casestudies/howtoorder.htmhttp://www.icmrindia.org/casestudies/howtoorder.htmhttp://www.icmrindia.org/casestudies/Business.asp?cat=Business%20case%20Studieshttp://www.icmrindia.org/casestudies/Business.asp?cat=Business%20case%20Studieshttp://www.icmrindia.org/casestudies/Business.asp?cat=Business%20case%20Studieshttp://www.icmrindia.org/casestudies/Case_Studies_Concept_Wise.asphttp://www.icmrindia.org/casestudies/Case_Studies_Concept_Wise.asphttp://www.icmrindia.org/casestudies/Case_Studies_Concept_Wise.asphttp://www.icmrindia.org/casestudies/Case_Studies_Industry_Wise.asphttp://www.icmrindia.org/casestudies/Case_Studies_Industry_Wise.asphttp://www.icmrindia.org/casestudies/Case_Studies_Industry_Wise.asphttp://www.icmrindia.org/casestudies/Case_Studies_Company_Wise.asphttp://www.icmrindia.org/casestudies/Case_Studies_Company_Wise.asphttp://www.icmrindia.org/casestudies/Case_Studies_Company_Wise.asphttp://www.icmrindia.org/casestudies/catalogue/paypal/Marketing/Glac%C3%A9au%20Paypal.htmhttp://fusion.google.com/ig/add?synd=open&source=ggyp&moduleurl=http://www.google.com/ig/modules/translatemypage.xmlhttp://www.icmrindia.org/casestudies/Case_Studies.asp?cat=Marketinghttp://www.icmrindia.org/casestudies/catalogue/paypal/Marketing/Glac%C3%A9au%20Paypal.htmhttp://fusion.google.com/ig/add?synd=open&source=ggyp&moduleurl=http://www.google.com/ig/modules/translatemypage.xmlhttp://www.icmrindia.org/casestudies/Case_Studies.asp?cat=Marketinghttp://www.icmrindia.org/casestudies/catalogue/paypal/Marketing/Glac%C3%A9au%20Paypal.htmhttp://fusion.google.com/ig/add?synd=open&source=ggyp&moduleurl=http://www.google.com/ig/modules/translatemypage.xmlhttp://www.icmrindia.org/casestudies/Case_Studies.asp?cat=Marketinghttp://www.icmrindia.org/casestudies/catalogue/paypal/Marketing/Glac%C3%A9au%20Paypal.htmhttp://fusion.google.com/ig/add?synd=open&source=ggyp&moduleurl=http://www.google.com/ig/modules/translatemypage.xmlhttp://www.icmrindia.org/casestudies/Case_Studies.asp?cat=Marketinghttp://www.icmrindia.org/casestudies/Case_Studies_Company_Wise.asphttp://www.icmrindia.org/casestudies/Case_Studies_Industry_Wise.asphttp://www.icmrindia.org/casestudies/Case_Studies_Concept_Wise.asphttp://www.icmrindia.org/casestudies/Business.asp?cat=Business%20case%20Studieshttp://www.icmrindia.org/casestudies/howtoorder.htmhttp://www.icmrindia.org/casestudies/case_pricing.htmhttp://www.icmrindia.org/Short%20Case%20Studies/Short%20Case%20Studies.asp?cat=Marketing%20Managementhttp://www.icmrindia.org/Short%20Case%20Studies/Short%20Case%20Studies.asp?cat=Marketing%20Managementhttp://www.icmrindia.org/casestudies/Case_Studies.asp?cat=Marketinghttp://www.google.com/webmasters/gadgets.html -
8/3/2019 The Case Highlights the Marketing Strategies of US Based Energy Brands Inc
9/13
analysts,
Glacau's
success in a
scenario in
which major
soft drinks
and beverage
manufacturers
like Coca-
Cola and
Pepsi had a
strong hold
over the
distribution
network and
spent
aggressively
in marketing
their
products,
illustrated
that even the
most
saturated
markets could
accommodate
innovative
products.
In 2005, less than a
decade since it
began as a small
start-up, Glacau
earned revenues of
Please note:
This case study was compiled from
published sources, and is intended to
be used as a basis for class discussion.
It is not intended to illustrate either
effective or ineffective handling of a
management situation. Nor is it a
primary information source.
-
8/3/2019 The Case Highlights the Marketing Strategies of US Based Energy Brands Inc
10/13
over US$ 350
million, with
compounded
annual growth of
200% per year. It
found prominent
shelf space at the
stores of several
major retailers
across the US. In
the process,
Bikoff's efforts
were also
recognized. In
2000, Bikoff was
awarded
Brandweek's
'Marketers of the
Next Generation'
and in 2001,
Crain's Weekly
named him 'New
York's Top
Entrepreneur.' He
was among the
finalists in Ernst &
Young's
'Entrepreneur of the
Year' in 2003.
The
Beginning
In the early
-
8/3/2019 The Case Highlights the Marketing Strategies of US Based Energy Brands Inc
11/13
1990s, when
Manhattan
was hit by
water
contamination,
Bikoff8set out
to buy bottled
water and
found that
except for the
brand name,
there was very
little
difference
between the
different
brands of
bottled water
sold. Bikoff
was looking
for additional
nutritional
value rather
than plain
water. Finding
none, he
started
conducting an
in-depth study
about different
companies
making
bottled water.
http://www.icmrindia.org/casestudies/catalogue/Marketing/Glac%C3%A9au%20Marketing%20Vitaminwater%20Case%20Studies.htm#8]http://www.icmrindia.org/casestudies/catalogue/Marketing/Glac%C3%A9au%20Marketing%20Vitaminwater%20Case%20Studies.htm#8]http://www.icmrindia.org/casestudies/catalogue/Marketing/Glac%C3%A9au%20Marketing%20Vitaminwater%20Case%20Studies.htm#8]http://www.icmrindia.org/casestudies/catalogue/Marketing/Glac%C3%A9au%20Marketing%20Vitaminwater%20Case%20Studies.htm#8] -
8/3/2019 The Case Highlights the Marketing Strategies of US Based Energy Brands Inc
12/13
He found that
he could use
vapor
distillation9to
create an
alternative to
bottled water.
Bottled water
was generally
procured from
springs and
contained
some
dissolved
minerals,
which could
be removed
using vapor
distillation...
Glacau's products were priced higher than the other soft
drinks, at US$ 1.49 per 20-ounce bottle while Coke was
priced at 50 cents. Glacau targeted consumers who were
ready to pay a premium for healthy alternatives to soft
drinks. It defended the higher price citing the higher value
that the product provided. Energy Foods had always
maintained a close contact with the consumers in order to
understand their tastes and preferences. According to Rohan
Oza (Oza), Senior Vice-president, Marketing, Glacau,
"The insight came from consumers. When you start with the
http://www.icmrindia.org/casestudies/catalogue/Marketing/Glac%C3%A9au%20Marketing%20Vitaminwater%20Case%20Studies.htm#9]http://www.icmrindia.org/casestudies/catalogue/Marketing/Glac%C3%A9au%20Marketing%20Vitaminwater%20Case%20Studies.htm#9]http://www.icmrindia.org/casestudies/catalogue/Marketing/Glac%C3%A9au%20Marketing%20Vitaminwater%20Case%20Studies.htm#9]http://www.icmrindia.org/casestudies/catalogue/Marketing/Glac%C3%A9au%20Marketing%20Vitaminwater%20Case%20Studies.htm#9] -
8/3/2019 The Case Highlights the Marketing Strategies of US Based Energy Brands Inc
13/13
consumer giving you the answer, it's always easier. But you
have to spend a lot of time with consumers to do that.
Whenever our folks go into stores, we talk to people, talk to
retailers, chat with consumers at the shelf"
For the 52-week period ending April 2006, Glacau vitaminwater was among the top 10
bottled waters in the US, when sales through food, drug, and mass merchandisers was taken
into consideration (Refer to Exhibit I for top bottled waters in the US)...
The Road Ahead
With the rising demand for vitaminwater, there were several instances of the products being
sold out within no time. At the same time, the company was trying to increase its shelf space
among the retailers in the US. Vitaminwater was also facing a challenge from some exclusive
stores, which provided specialized products with natural ingredients and lower calories. With
the capital infused by the Tata Group, analysts opined that Glacau would be able to expand
its operations further and could consider entering international markets. By 2011, Glacau
was estimated to be a US$ 10 billion company...