Glaceau case study: the rise of non-carbonates in the US soft drinks market

Published by: Datamonitor

Published: May. 23, 2008 - 22 Pages

Table of Contents

DATAMONITOR VIEW

CATALYST

SUMMARY

ANALYSIS

Coca-Cola's purchase of Glaceau reflects a shifting product focus to account for changing market trends

The US carbonates market is experiencing declining growth, while functional drinks sales continue to soar

The Glaceau acquisition reflects Coca-Cola's focus on boosting its health and wellness portfolio to offset difficulties in the carbonates market

Coke plans to let Glaceau run as a separate business entity to preserve its entrepreneurial culture

Glaceau's success owes much to a diverse healthy product range and novel marketing style

Glaceau was touted as the first enhanced water brand to be launched in the US, giving it 'first-to-market-advantage'

Glaceau's functional waters provide consumers choice based on their personal needs

Glaceau's labeling strategy is pragmatic yet quirky, while colorful bottles allow them to stand out in the bottled water aisle

A detailed description of the drinks' contents is given on the label, written in a light-hearted tone.

A well presented interactive website allows users to learn more about Glaceau flavors

Glaceau branded vending machines are planned for use in campuses to target the college aged consumers

Glaceau targets young adults and uses celebrity endorsement to re-enforce its positioning

Young adults make up the majority of the functional drinks market

Glaceau employs sport and music stars to promote the brand to young adults, tapping into relevant aspects of popular culture

50 Cent has an established connection with the brand

He is a brand ambassador who cashed in on his minority stake in the company after the Coca-Cola purchase

50 Cent helps promote the brand to its core young adult demographic through quirky adverts, brand mentions in songs, and his own flavor variant

Glaceau's costliest ad to date featured Shaquille O'Neal as a jockey, further highlighting its witty advertising style aimed at the young

APPENDIX

Case study series

Methodology

Secondary sources

Further reading

Ask the analyst

Datamonitor consulting

Disclaimer

List of Tables

Table 1: Vitaminwater comes in 15 flavor varieties to cater to the different needs of consumers

List of Figures

Figure 1: Vitaminwater is presented in a range of colorful bottles that stand out in the aisle

Figure 2: Glaceau is endorsed by a variety of stars from sports, film and music fields

Figure 3: 50 Cent has appeared in numerous adverts for Glaceau

Abstract

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