Smart Water

FASHION MARKETING AND BRANDING Brand environment Module: FASH10102 Batch: BFMD1 1202A

By: Chinmay Mahesh Daswani FIN NO: G1181475T

Executive Summary SmartWater is bottled water that is being introduced into the Singapore market. This is a premium nutrient enhanced brand from the United States. The Singapore bottled water market is analysed in order to identify competitors in the market and identify how SmartWater can be positioned and communicated in the market effectively, to set it apart from its competitors. Smartwaters’ consumer profile is identified and a market strategy is developed towards the target market. The marketing mix for SmartWater is developed supported by a questionnaire survey carried out and secondary research. Forecasted sales have been projected to identify the rate of the payback period.

1

CONTENTS PAGE Introduction

Page No

1.0 Purpose, Scope, Limitations ------------------------------------------------------------------------------------------------------ 5 1.1 Company background ------------------------------------------------------------------------------------------------------------------ 6 1.2 Rationale for choosing SmartWater nutrient enhanced water -------------------------------------------------------------- 6

Situation Analysis 2.0 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9

Singapore drinks industry ------------------------------------------------------------------------------------------------------------8 Singapore soft drinks Segments --------------------------------------------------------------------------------------------------- 9 Singapore bottled water market ---------------------------------------------------------------------------------------------------10 Growth of the Singapore bottled water market ------------------------------------------------------------------------------- 11 SmartWater market in Singapore--------------------------------------------------------------------------------------------------12 Consumer trends ----------------------------------------------------------------------------------------------------------------------14 SmartWater SWOT analysis---------------------------------------------------------------------------------------------------------15 Singapore Pestle analysis------------------------------------------------------------------------------------------------------------16 Porters 5 forces model---------------------------------------------------------------------------------------------------------------19 Functional/Flavoured bottled water competitor analysis-------------------------------------------------------------------22

Market objectives 4.0 4.1 4.2 4.3 4.4 4.5 4.5

SmartWater Marketing objectives--------------------------------------------------------------------------------------------------25 Market Segmentation------------------------------------------------------------------------------------------------------------------26 Target segment --------------------------------------------------------------------------------------------------------------------------28 Target market-----------------------------------------------------------------------------------------------------------------------------30 Consumer profile-------------------------------------------------------------------------------------------------------------------------30 Market positioning-----------------------------------------------------------------------------------------------------------------------34 Perceptual mapping----------------------------------------------------------------------------------------------------------------------34 2

4.6 Competitor brand share--------------------------------------------------------------------------------------------------------------35

Marketing mix for Singapore market 5.0 5.1 5.2 5.3

Product----------------------------------------------------------------------------------------------------------------------------------37 Price--------------------------------------------------------------------------------------------------------------------------------------43 Place-------------------------------------------------------------------------------------------------------------------------------------47 Promotion------------------------------------------------------------------------------------------------------------------------------49

Budgeting & Forecasts 6.0 Sales forecast--------------------------------------------------------------------------------------------------------------------------- 59

Marketing mix summary 7.0 SmartWater marketing mix summary----------------------------------------------------------------------------------------------64 References---------------------------------------------------------------------------------------------------------------------------------------69 List of exhibits-----------------------------------------------------------------------------------------------------------------------------------68 Appendix------------------------------------------------------------------------------------------------------------------------------------------69

3

Introduction

4

1.0

Purpose, Scope, Limitations

A) Purpose Introducing a new bottled water in Singapore.

B) Scope This report encompasses this chosen bottle water and rational for the introduction of the brand. An analysis of the bottle water market in Singapore and the chosen brands’ potential market. Competitors and gaps in the market are identified. Marketing objectives and targets for the brand are set. Further, the marketing mix for the brand will be discussed as well as a sales forecast.

C) Limitations Research for this report was obtained through a questionnaire survey, online databases, news articles and reports

5

1.1 Company Background: Smart water is premium bottled water (non-carbonated) owned by Glaceau, which also produces VitaminWater and FruitWater. SmartWater is vapour distilled electrolyteenhanced water, which offers a flavourless, calorie free option to water drinkers. Glaceau was founded by J. Darius Bikoff under the name Energy Brands Inc in 1996 in Whitestone, New York. Energy brands sourced from the glacial aquifers in Litchfield County, Connecticut and established an extremely advanced vapour distillation process. It offers superior purity using a heating process which extracts extra molecules and particles. After this process, the water is then enhanced with electrolytes; magnesium, potassium and calcium to increase hydration in the body. In 2007, Glaceau was acquired by coca-cola Inc., but it remains a virtually independent brand under the name.

1.2

Rationale for introducing SmartWater – nutrient enhanced water SmartWater fills the gap in the market for beverages which provide health benefits and hydration. SmartWater can be consumed as drinking water or a sports beverage.

Singaporeans are becoming increasingly health conscious consumers; 57% (Neilson, 2010) of Singaporeans consider themselves on the heavier side. Also majority of the 57% would change their diet (75%) or exercise (66%) to achieve their goal. Slowdown in sales of carbonated sodas. Consumers are turning to drinks to provide additional health benefits, extra energy to help them improve physical performance during sport and recovery after exercise. Sports drink consumption (litres) is forecasted to grow by 25.6% from 2012 - 2016.

SmartWater will be the only enhanced water in the market which is healthy( sugar-free, Calorie-free) which will appeal to health conscious consumers

VitaminWater assists in promotion; VitaminWater also produced by Glaceau has been well established in the market since 2010. This will assist in promotion. Consumers are likely to purchase SmartWater, because of consumer’s familiarity with VitaminWater/Zero.

6

Situation Analysis

7

2.0

Singapore Drink Industry Various Segments of Singapore Drink Industry

Hot drinks

Exhibit .1

(Euromonitor,2012

Soft drinks

Alcoholic drinks

Singapore Drink Industry 2012

(Euromonitor,2012)

)

Key findings: Soft drink sales shows lower sales, as consumers our purchasing less of mass manufactured carbonated sodas like coke, 7-up for health reasons. The alcoholic drink sector is growing due to increasing demand by increasing tourism in the country and the number of expatriates moving to Singapore 8

2.1

Singapore soft drink segments Soft drinks

Carbonates

Concentrates

Carbonated water Brands: -Perrier -San Pellegrino -Spritzer (sparkling) -No Frills

Fruit/vegetable juices

Bottled water

Sports/energy Asian speciality RTD coffee drinks drinks

Flavoured/Functional water Brands: -H-two-o -100Plus -VitaminWater -pocari sweat -Gatorade -Pink dolphin

RTD Tea

Still bottled water Brands: --F&N ice mountain -Aqua -Evian -Volvic -Fair Price -Dasani -First Choice -Aquarin -Carrefour -Spritzer (still)

9

2.2

Singapore Bottled Water Market (2011)

Exhibit. 2

(Source: Euromonitor, 2012) Key findings: - Still bottled water holds the highest value in sales and volume due to its low prices in the market and because it is considered a basic product in Singapore. - Carbonated Water is experiencing the lowest value in sales and volume because brands like Perrier, san Pellegrino and spritzer are popular as mixers and not for basic consumption in the Singapore market.

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2.3

Growth of the Singapore bottled water market

Exhibit. 3

4% growth

(Source: Euromonitor, 2012) Key findings: -Flavoured and functional bottled water shows strong growth in the market. This is due to rising health consciousness among Singaporeans who are now demanding healthier drinks with additional health benefits. - Many Singaporeans also see sports drinks as an alternative to bottled water because it also rehydrates. It is also perceived to be equally healthy to bottled water. - Sports drinks are also being consumed throughout the day, which also accounts for the functional/flavoured bottled water growth 11

2.4 The SmartWater market in Singapore Functional Bottled Water ‘The Booming Market’ - SmartWater operates in the functional bottled water market because of the electrolyte enhancement of SmartWater (calcium, potassium, magnesium) - Functional water can be defined as water-based beverages where various fruit/ herbal concentrates and minerals are added to water for nutrient value. These consist of sports drinks and flavoured water. Exhibit.4

Source (Euromonitor, 2012)

12

Key findings: - The functional bottled water market is showing strong growth rates during the forecast period. -

The growth is accounted for by the on-going rising demand for sports drinks like 100Plus and H-Two-O due to rising health conscious consumers (57% health conscious Singaporeans, neilson,2010) and because it’s considered healthy in Singapore and an alternative to bottled water. The market for such products in Singapore is considered the biggest threat to the growth of the bottled water market.

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2.5

Consumer trends

A high percentage of the population are taking an interest in their health. Exhibit.5 Key findings -

-

-

-

-

There is a higher percentage of people that watch their health then people that don’t in Singapore. The youth have started taking their health seriously at an early age. This implies that Singapore will have a healthy population and increased life span. Singaporeans will demand less of sugary drinks and fast food which are the key reasons for obesity in the country. Singaporeans will increase their demand for bottled water for a healthy option for hydration.

Source: Ac Nielsen CATI Omnibus

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2.6

SmartWater SWOT analysis eakness

trengths

•

Family brand, VitaminWater by Glaceau helps to promote SmartWater

•

Potential competition with family brand vitamin water.

•

Possible cannibalism effect

•

Vapour distilled with electrolytes (calcium, potassium and magnesium)

•

Flavourless

•

Its sugar-free , no calories, carbohydrates or sodium

•

Lack knowledge on the benefits of SmartWater(vapour distilled ,electrolytes)

•

Hydrates the body faster than regular water

•

People may not want their water enhanced.

•

Famous within the United States, consumed by many celebrities

•

Company is more focused on VitaminWater

pportunties

hreats Mature market(competition)

Current trend in health conscious consumers 

Health benefits of SmartWater



Expanding into different geographical markets

•

High-end bottled water

•

Tap water

•

Increasing number of substitute products

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2.7 Political

Economic

Social

Social

Singapore pestle analysis for SmartWater



sound water policies



Government encouraging foreign investments.



The termination of the franchise agreement between Coca-Cola an F&N ltd has created intense competition between the two companies



Inflation 3.6 %( 2012) has decreased in comparison to 5.7% in 2011. This decrease in inflation rate leads to the average household having more income thus having a higher disposable income leading them to spend more on products such as SmartWater



Economy grew by 1.5% in 2012 and is forecasted to expand by 1% to 3% in 2013. Since the economy is forecasted to grow, this would mean that there would be an increase in jobs bringing down unemployment rate. Thus, increasing the incomes for the average household and in turn increasing the disposable income that each individual owns. With a higher disposable income, individuals would be able to spend more on non-essential goods such as SmartWater.



Singapore food & drink business environment rating- Singapore was ranked 4th in the BMI’s reward/risk ratings for Asia-Pacific. Its growth outlook is fairly uninspiring, reflected by a overall low reward score of 38.7



Singapore enjoys high existing food and drink consumption level; but the developed and mature market suggests limited scope for growth in the future.



Presence of strong incumbents such as Fraser and Neave and YEN, competitors to Cocoa-Cola.co owners of Glaceau.



Singapore has the benefit of a conducive business environment, which will continue to bolster its overall investment appeal to foreign consumer goods investors



Spending power by Singaporeans is not expected to slow down in the upcoming year supported by a falling unemployment rate and a generally high GDP per capital in Singapore of 33529.83 US dollars.



Singaporeans are highly educated with a literacy rate of 96% - Consumers are aware of health hazards caused by various consumer products. 16

Technological



Singaporeans becoming health conscious (57%) - watching their diet and becoming increasingly physically active. Demand for sport drinks and bottled water rising, while consumers are cutting down on their consumption of sodas.



Singaporeans are increasingly spending their leisure time exercising.



Advanced technological infrastructure



Technology as a key driver, there’s strong growth in Singapore’s water industry. Quality of tap water provided to homes improve, increasing its competitiveness in the drink industry

-

-Gov’t bodies (PUB) research & innovation in water technology to improve water industry.

-

-S$470 million by the National Research Foundation to fund water research by public and private sectors.



Highest level of internet penetration in Southeast Asia -85% of digital consumers in Singapore own an internet-capable mobile phone. -Internet advertising will be an effective way to create awareness of SmartWater in Singapore.

Legal

Environmental

•

As technology increases, the machinery and tools used in manufacturing and production of goods are advanced as well. Therefore, the production of SmartWater would become more efficient and move at a quicker pace.



A new law passed in September 2012 ‘Lemon Law’ which protects consumers from defective products or products of unsatisfactory or performance standards. This allows consumers to get refunds on products and allows businesses to alter their product.

-

SmartWater should not mislead consumers. Otherwise this could affect brand image and increase their cost.



The presence of competition in Singapore is encouraged by laws which prevent mergers, selling prices etc. that could dampen competition. SmartWater has many competitors in Singapore and consequences of infringement of competition laws leads to financial penalty (10%) of the turnover of the business for 3 years. Affected parties also have the right of action.



Tropical climate in Singapore creates demand by consumers for beverages that improve hydration



Waste management is an issue in Singapore (7,600 tonnes of waste collected a day) Use of recyclable material is encouraged.

Main Sources: (Trading economics, 2012 cited in ministry of manpower, trade& industry, environment and waste collection, 2012) 17

(Singstat, 2012) (Singapore law academy, 2012) (Nielsen, 2011) Key findings: After studying the pestle analysis it is implied that overall the Singapore’s economy is growing. - More specifically from the political view, with the open mindedness of the country and the encouragement of foreign investments, motivates foreign investors. The open mindedness of the global system allows SmartWater to branch out into different global/geographical markets. -Economically, it is implied with the decrease in inflation, disposable incomes increase as well as bring down unemployment. This is adding to the growth of the economy and improving its global appeal. - Socially, the high level of education and healthier culture is leading to a stronger work force and longer life span of the population. - From the point of technology, with a constantly improving infrastructure, there are higher levels of efficient manufacturing which is causing growth. This is important to the bottle water industry because it improves the quality of water available to the public, which improves its competiveness globally. - Legally, Singapore has advanced by protecting consumers by introducing the ‘lemon law’. This gives consumers confidence that other countries may not provide and also improves their level of satisfaction. Competition is encouraged which motivates companies to improve the level of quality and variety available to the consumers, thus increasing the buying power of consumers. - Environmentally, due to the country’s tropical climate, consumers are demanding more water products; this will push SmartWater into the market, which meets consumer needs.

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2.8 Porters 5 forces model –Competition analysis

• •

• • •

•

THREATS OF NEW ENTRANTS MEDIUM TO LOW There is a relatively slow industry growth rate. 2.5% CAGR growth in value sales from 2012-2016 which may discourage new entrants. The Small market size coupled with strong incumbents like F&N, YEN and Pokka corporations will make it difficult for new entrants to compete in the market. These mature markets will create high advertising and promotion costs for the new brand. Ease of access to distribution channels like NTUC, Cold storage, shensiong. Consumers are becoming increasingly brand conscious. With Glaceau under coca-cola, it will help reduce costs of the introduction of SmartWater into Branding is highly important

• •

•

THREAT OF SUBSTITUTES

• • • • •

•

MEDIUM TO HIGH SmartWater will have competitors in the enhanced water and sport drink category as well as with regular bottled water brands. From the point of view of the retailers, substitutes will include all other soft drinks like concentrates, juices, tea’s etc. For consumers, tap water is also another substitute since tap water is safe and has qualities similar to bottled water. The ways the products are packaged and advertised is very important and is crucial to the success of the product. Consumers are becoming increasingly concerned about the environment, and manufactures are beginning to produce using eco-friendly packaging as a result. Overall strong threat from substitutes can be assessed

INTENSITY OF RIVALRY HIGH Strong existing companies in the market increases the intensity of competition. Retailers do not experience high switching cost from moving from one product to another. However, strong branding and customer loyalty can create a threat. Retailers’ stock brands which are popular with their own customers, reducing intensity of competition. Assets required for setting up bottling water plants are specialized and capital required to set up a small plant is not very high. Exiting the market will require you to divest these assets.

19

•

•

•

•

• •

BARGAINING POWER OF SUPPLIERS MEDIUM - HIGH PRESSURE Spring water and mineral water must come from a specific underground source and be bottled at the source. For companies, it’s important to access land that has an aquifer suitable for exploitation Switching costs in both cases are high. It’s difficult for the customers to opt for an alternative water utility and for companies relying on underground sources Substitute input. Supplier power is increased due to limited substitutes. The quality of inputs is also important, because they must meet specific criteria’s. Sources of water are limited and are costly. As natural resources become more and more scarce, the power of water suppliers are ever increasing. Strong relationships are needed with water suppliers to ensure a continuous supply of water to the bottling companies. Suppliers of plastic and other chemical inputs rely on these companies for their livelihood. Overall Supplier power can be assessed as moderate. This makes the industry fairly attractive for new entrants.

•

•

• •

•

BARGAINING POWER OF BUYERS MEDUIM/HIGH Some of the main buyers in the market are retail chains. With 57% of consumers changing towards healthier lifestyles, the competitors are looking for ways to differentiate their products in line with current consumer trends (healthy). With branding being an important factor for the end-users, retailers stock brands that are popular with their customers. This weakens their buyer power. Bottled water manufactures and these retailers are different businesses together so it’s unlikely for vertical integration to occur. The bottled water sales are just a sub-segment of the soft drink market. This reduces the importance to retailers who also sell a wide variety of drinks. This strengthens the buyer power slightly. In the end, it is the consumer and final buyer of the product that determines its success. Therefore, it is essential to understand the changing preferences and wants of the buyers in order to keep them satisfied.

Key findings: Overall this model implies that SmartWater in the industry will have medium pressure from all sides, due to competition encouraged, thus there will always be risk taking. Threat of entrants – This biggest barrier to entry is the current existence of strong brands in the marketplace. So when entering the marketplace, Coco-cola should establish SmartWater as a product with a strong brand name and try to grab as much market share as possible. Retailers also have to be convinced of the strength of the new brand before allocating space to it. It’s the strength of the brand that creates high barriers to entry for future companies. 20

Threats of substitutes - threat from other soft drinks, mainly tap water because it’s free. Companies have to show how their product is different and of higher quality than tap water. Bargaining power of suppliers - Because water is an essential and limited resource it increases the power of suppliers, companies that don’t own the land they operate in also increases the cost companies will incur. Availability of limited substitutes weakens the bargaining power of buyers. Bargaining power of buyers – branding has to be high to encourage buyers to sell their products; high competition between competitors Intensity of rivalry - Overall medium to high implies that companies need to keep strong level of branding and high quality products in order to keep a high market share and customer base because consumers can easily shift from product to product.

21

2.9 Brands

contents

Packaging

SmartWater(brand being introduced)

Functional/Flavoured bottled water competitor analysis Pocari sweat H-two-o 100plus Pink Dolphin

Vapour distilled water +Electrolytes

Flavouring + electrolytes

Sleek bullet shaped PET bottle with silk screened label

-Aluminium cans , PET Bottles with a plastic wrapped label

Flavouring +carbohydrates & sodium

VitaminWater

Carbohydrates +sodium

Flavouring + collagen

Flavouring + selected vitamins

- Hexagonal Plastic bottles, cartons and aluminium cans

- Aluminium cans plastic bottles and with a plastic wrapped label

Hexagonal PET bottle with full plastic wrap label

Cylindrical gridded PET bottle with plastic wrapped label

250 ml, 300 ml, 500ml, 1.5 litres

1.5 litres, 500 ml, 325 ml

SKU’s

1.5 litres, 1 litre , 750 2litres, 500 ml, 350 ml, 250 0z ml, 330 ml

500 ml

500 ml

Product range none

One flavour

Four flavours

Five flavours

Three flavours

Six flavours

RETAIL PRICE

2 litre – S$3.30 500 ml – S$1.25

1.5 litre – S$ 1.80

1.5 litres –S$ 2.00

500 ml – S$ 1.20

500 ml – S$ 1.70

500 ml – S$ 1.30

500 ml – S$ 1.35

Assumed price 1.5 litres – S$1.8

22

1 litres - S$1.6 750 ml – S$1.4 25 oz – S$ 1.2 TARGET MARKET

BRAND’S KEY MESSAGE

350 ml – S$0.95 330 ml(can) – S$1.05

250 ml -

325 ml – S$ 1.50

Health conscious con- Physically sumers /Active active/athletes. lifestyle

Physically active/Athletes

Physically active/Athletes

A beverage for your workout to your night out( brains perform best when hydrated)

Your perfect buddy to complement your active lifestyle to combat dehydration and power up your performance for optimal results! (http://www.yeos.com.

- A health drink that aptly replaces minerals and fluids lost through physical activities at work, sport or at home(http://www.po carisweat.com.ph/)

Isotonic, thirst quenching drink formulated to restore what the body loses during physical exertion and to help achieve optimum hydration and sg/h-twoelectrolyte balance o/original/Refuel_With_ (http://www.100plus.co.z H-TWO-O_Original.php)

Health conscious consumers

An invigorating light fruity peach- flavoured drink jazzed up with vitamins, perfect for the chic& confident who takes pride in their health and body (http://www.yeos.com.sg/p

Consumers looking for more than just regular water Hydration for every occasion (http://www.cocacola.com.sg/bevera ge_benefits/vitami nwater.asp)

inkdolphin/products.php)

a/site/home)

)

Key findings: Competition is intense due to similar pricing and similar target consumers. This generally shows low profits due to competitor price cuts in order to capture sales from competitors. Similarity within the existing competitors gives way for new entrants to enter and tap into potential areas which have not been targeted. Strongest players identified are H-TWO-O and 100Plus

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Market Objectives

24

4.0

SmartWater marketing objectives

Marketing Tactics: Gain strong alliance with retailers (buyers) to boost brand awareness. 25

4.1

Market segmentation

Age 10-18 year olds

18-30 year olds

30 – 40 year olds

40-50 years olds

50+

Factors Lifestyle

Demographics

Psychographic

-School oriented lifestyle

-Active lifestyle involved in college and working.

- These consumers (83%, Euromontor, 2012) lead very active lifestyles. Involved in a lot of physical activity

-Consumers are brand conscious and concerned about their appearance

Occupation-Consists of mainly students

Occupation- Students and the employed

Occupation - Employees and entrepreneurs

Occupation - Managers and entrepreneurs

Education- Primary – high school educated

Education- ranges from degrees -Masters

Education -Highly educated(degreesPHD’s)

Education - Highly Educated(Degrees-PHD’s)

Income- Income based on allowance

Income - Allowances, Medium-low salaries but lower expenses(higher disposable income)

Income- moderate but stable disposable income

Income -High disposable income

- Care-free. Low

-The desire to be in trend

- Consumers are spending more time

- Family & business oriented

- With jobs which are increasing their disposable income, consumers are spending on up-scale products.

-Active lifestyles - full time jobs, consumers are married and starting families. -Consumers are building their career

-Family oriented lifestyle as well as business oriented. - Consumers move from employees to business owners, they want to make a name for themselves.

- Retirement phase - Spending more time with family and enjoying memories

- Men and women are increasingly living healthy lifestyles. Concerned about their eating habits because their - Their families are growing; busy schedules may not leave much Partying is no more a priority. time for exercising.

Occupation -Managers and entrepreneurs(longer working experience) Education - Highly educated(Degrees-PHD’s) Income -High disposable income

- Family oriented 26

concern about health issues

Behavioural

-Consumers at this age prefer sweet products(sodas) - consumers like to try different products -Low brand loyalty

and brand conscious

with their family

-Consumers are concerned about saving for their family

-Increasing savings for retirement

-Fewer obligations

-higher obligations

-Consumers are concerned about keeping their bodies fit(watch their diet)

-Consumers are exercising more and eating healthy

-Consumers are exercising to control their weight and cutting down on salty and fatty foods

- Consumers are aware of health hazards they are prone to at this age. Consumers are cutting alcohol intake and watching their diet.

- Consumers are highly influenced by brand image

-Consumers are influenced by branding

- Consumers are spending less on non-essentials

- Consumers spend mostly on essentials

- Consumers are looking for healthy beverages to keep them alert & hydrated throughout the day

- Consumers are willing to spend more on healthier and organic products.

- Consumers look for healthy foods which have health benefits

- Consumers look at products for hydration during and after exercising

- Consumers most likely will seek tap water for hydration

- Consumers stick to products that have less sugar and low calories.

- Consumers pick products which are low-fat and low in sugar content

-Brand loyalty is moderate

-Brand loyalty towards brands in trend

- High brand loyalty

- Consumers prefer products they are familiar with -High brand loyalty.

(Kotler, 2010, pg.217)

Sources: Euromonitor. 2012. Consumer Lifestyle. [ONLINE] Available at: http://www.euromonitor.com/consumer-lifestyles-in-singapore/report. [Accessed 14 January 13].

27

4.2

Targeted Segment

2 sub-groups of the market will be targeted, because of similar characteristics present in each of these segments. Consumers are health conscious and are constantly on-the-go. Consumers are able to spend extra on a beverage which will suit their healthy lifestyle and at the same time keep they hydrated for their days’ activity. Age

18-30 year olds

30 – 40 year olds

Factors Lifestyle

-Active lifestyle involved in college and working.

-Active lifestyles - full time jobs, consumers are married and starting families.

-Consumers are brand conscious and concerned about their appearance

-Consumers are building their career

- With jobs which are increasing their disposable income, consumers are spending on up-scale products. Demographics

Psychographic

Behavioural

- Men and women are increasingly living healthy lifestyles. Concerned about their eating habits because their busy schedules may not leave much time for exercising.

Occupation- Students and the employed

Occupation - Employees and entrepreneurs

Education- ranges from degrees -Masters

Education -Highly educated(degrees-PHD’s)

Income - Allowances, Medium-low salaries but lower expenses(higher disposable income)

Income- moderate but stable disposable income

-The desire to be in trend and brand conscious

- Consumers are spending more time with their family

-Fewer obligations

-higher obligations

-Consumers are concerned about keeping their bodies fit(watch their diet)

-Consumers are exercising more and eating healthy

- Consumers are highly influenced by brand image

-Consumers are influenced by branding

- Consumers are looking for healthy beverages to keep them alert &

- Consumers are willing to spend more on healthier and organic products. 28

hydrated throughout the day

- Consumers look at products for hydration during and after exercising

-Brand loyalty towards brands in trend

- Consumers pick products which are low-fat and low in sugar content - High brand loyalty

29

4.3

Target Market

The defined target market is the young active men and women with disposable incomes. With many competitors in the industry, making it harder to market new products, the audience here is looking for more than plain water which matches SmartWater’s selling proposition. Our target audience would fall in the 18-40 year-old range. Young people have more disposable income and are more susceptible to branding and peer influence. The older target groups will not be targeted because they are more concerned with saving money. The aim is to target consumers concerned about a healthy lifestyle.

4.5

Consumer profile

Age

-18-40 year olds- This age group consists of the active population from students to working men and women as well as young active housewives. The youthful population are prone to spending and are more influential.

Income

90% (sing stats) of the Singaporean population engages in full time employment. Majority of this portion consists of the youthful population. Consumers in this category have disposable income and are willing to spend(less concerned about saving); Consumers are influenced by trends and brands in this category which will increase their willingness to spend on non-essentials.

lifestyle

Consumers are health conscious, make an effort to watch their diet and exercise. Consumers are constantly on the move and are interested in beverages that can keep them hydrated and refreshed throughout the day.

Occupation

Consumers are active students and full time employees who need a perfect solution to keep them going throughout the day.

Education

Consumers are at least high school graduates. Consumers are aware and educated about our environment, common health hazards and are knowledgeable on the benefits of electrolytes.

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Consumer Profile Mood board

31

32

Target consumers - Brand awareness

Exhibit .6

Total target consumer Population(persons)

18- 30 year olds

30 -40 year olds

820,000 (singstat,2012)

620,000 (Singstat, 2012)

1st

year Targeted brand awareness

20% of population

20% of population

2nd year Targeted brand awareness

30% of population

30% of population

3rd year Targeted brand awareness

45% of population

45% of population

Target unit purchases Exhibit.7 Forecasted period

18- 30 year olds 820,000(Singstat, 2012)

30 – 40 year olds 620,000 (Singstat, 2012)

164000 persons

124000 persons

1st year estimated consumer purchase

10% of target population

10% of target population

1st year total estimated purchase

40,000 units

40,000 units

246,000 (persons)

186,000 (persons)

25% of target population

25% of target population

Population

1st year Total targeted brand awareness(of population)

units

2nd year Total targeted brand awareness( of population) 2nd

year

estimated

consumer

purchase

33

2nd year total estimated purchase units

3rd year total targeted brand awareness(of

56,000 units

56,000 units

369,000 (persons)

279,000 ( persons)

40% of target population

40% of target population

84,000 units

84,000 units

population) 3rd

year total estimated

consumer

purchase 3rd year estimated purchase units

33

4.5

Market Positioning

The product will be seen as vapour distilled water with an edge. The product will be marketed as calorie-free enhanced water which provides quick hydration throughout the day. The product will operate in the functional/flavoured bottled water market and compete with strong local brands such as 100plus, h-two-o, pink dolphin and family brand VitaminWater.

Positioning statement: To the young and active, who need to stay hydrated throughout the day. SmartWater provides you vapour-distilled water with an edge. Magnesium, potassium and calcium to hydrate you from your workout to your night out, without worrying about sugars or calories

Exhibit.8

4.5

Competitor Perceptual Mapping

34

Key findings: The market for enhanced water without flavouring/ sweeteners hasn’t been exploited yet in Singapore. SmartWater will have to be clearly differentiated from other enhanced beverages in the market to set it apart. Strongest Competitors in the market are 100 plus and H-Two-o through their strong branding positioning. A Luxury thirst quencher which is unflavoured /un-sweetened will suit consumers who are looking for more than just plain water. They are constantly on the move and need an efficient hydrator. Such consumers are health conscious and are particular about what they consume.

4.6

Competitors brand share

Exhibit.9 Bottled water market(2011)

Market Value S$ ‘000 37,898 (100%)

Functional/Flavoured bottled water(2011)

S$ 6990 (18%)

Strongest Players

% market value

100PLUS brand share

49%

H-TWO-O brand share

11%

SmartWater aims to capture 1.5% of the flavoured/ functional bottle water market value in its first year of operation. With strong brand positioning of the brand, setting it apart from its competitors, it sets to capture 4% of brand share from its two strongest competitors in the next 3 years.

35

SmartWater Marketing Mix for the Singapore market

36

5.0

SmartWater Marketing Mix: Product

- Glaceau SmartWater electrolyte enhanced water will be introduced into the functional/flavoured bottled water market in Singapore. - SmartWater will be targeted at consumers who need a beverage to keep them hydrated during exercise and active throughout the day. - SmartWater will be introduced in four different sizes. 1. 1.5 litres 2. 1 litre 3. 750- ml sport bottle 4. 25- oz - Consumers today are highly influenced by appearance and the physical look. - SmartWater’s bottle packaging and name is one of the products strengths. Its sleek and unique design gives it an exclusive look and it’s what makes it stand out from bottled waters on shelves. SmartWater Sports (750- mL) - SmartWater bottled water with a sports cap will be introduced into the market. This is will satisfy the needs of consumers involved in physical activity, making it easier for them to hydrate themselves without spilling.

SmartWater Packaging Brand Name: The brand name SmartWater will be maintained. Results from a questionnaire carried out implied that ‘SmartWater’ is a unique name which will catch people’s attention in the market and fits appropriately to the function of the product. Other brand names are stereotypical which reflect where 37

the water has been sourced from like Fiji or Evian. The name ‘SmartWater’ has a mysterious feel which catches the attention of the consumers, thus urge them to purchase the product.

Label: The label will tell a cohesive story on both sides of the bottle, which will communicate the brand benefits and establish the brands personality and style. The front logo of the bottle will be maintained, however the backside of the bottle label will be adjusted. The label graphics include a fluid raindrop shape in navy blue which also flows across the shelf when the bottles are placed together. This creates energy and movement relating to the products electrolyte enhancement.

While other bottled water graphics normally capture consumer’s attention on the front-label, Glaceaus’s SmartWater will engage consumers on both sides of the bottle. The label is printed using silk screening and UV flex, in nine colours and a varnish coating.

Initially - On the reverse side, an image of a gold-fish visually communicates that ‘spring water is for swimming and SmartWater is for drinking’. This image of the gold fish can be misunderstanding and give consumers a different impression. 38

Bottle: The shape of the original bottle will be maintained. Findings from a questionnaire showed that the sleek, slender bullet shaped bottle gives an expensive/up-scale look and is a change from the typical gridded plastic water bottles. SmartWater is packaged in transparent PETE bottles (polyethylene terephthalate) PETE bottles are light weight and material used in manufacturing the bottles are 100% recyclable.

39

Packaging Mood board

40

Dual branding which will engage consumers on both sides of the bottle.

41

Three levels of SmartWater Exhibit.10

(Kotler, 2010,pg.250)

42

5.1 SmartWater Marketing Mix: Price -

With SmartWater being a premium brand in its current operating market(U.S.A), prices will be kept low in the Singapore market in order to compete effectively with such tight competition. High levels of expenditure in the beginning will not enable penetration pricing strategy to be used. Market-Based pricing will be used during the introduction of SmartWater in order to stay competitive in the market. Prices will be set in line with competitors. This will still attract buyers and capture market share of its competitors.

Competitor price comparison Competitor price set per 500 ml (SGD DOLLAR) Exhibit.11 BRANDS

SmartWater(750ml -1.40)

100PLUS

H-TWO-O

POCARI SWEAT

VitaminWater

PINK Dolphin

Retail price per 500ml

$ 1.25

$ 1.35

$ 1.30

$ 1.25

$ 1.70

$ 1.20

43

Costing Manufacturing cost Exhibit.12

Cost of production

1.5 litres

1 litre

750 ml

25 oz

70,000units

50,000 units

90 ,000 units

50,000 units

($1.00 per unit)

($0.8 per unit)

($0.6 per unit)

($0.4 per unit)

Landed cost from U.S.A to Singapore Exhibit.13

Landed cost Value of goods Freight and insurance CIF Handling charges (1%) Add customs duty Taxable value GST (7%) Landed cost per unit

Values ( Singapore dollars) $184,000 $2,500 $186,000 $1,860 $2,000 $189,860 $13,290 S$ 0.05 44

Summary of SmartWater’s cost and pricing Exhibit.14

SKU’S Landed cost(manufacturing cost + importation cost) Selling price(cost +profit margin) retailing price(20%)

1.5 litre

1 litres

750 ml(sports bottle)

25 0z

S$ 1.05

S$0.85

S$0.65

S$0.45

S$1.8

S$1.60

S$1.40

S$1.20

S$ 2.0

S$ 1.9

S$ 1.60

S$ 1.40

45

Price promotion Quantity discounts will be offered to the retail chains that purchase in large quantities. Exhibit.15 Quantity

Discount

Per 20 cartons

5%

Per 40 cartons

7%

46

5.2 SmartWater Marketing Mix: Place Direct marketing approach will be used. SmartWater will be distributed directly to the retail chains; this will provide an opportunity to gain strong alliances with the retailers who sell to the end consumers. Distribution will mainly be to the popular retail outlets and convenience store. Results from a questionnaire supports this decision, as consumers said they mostly purchased their enhanced water bottles from such purchase points.

DISTRIBUTION CHANEL

47

Target number of retail outlets SmartWater is targeting 15% of each of the retailer’s outlet during its first year in the market. This 15% will be the top busiest retail outlets in Singapore. This approach will also apply for the following years.

48

5.3

SmartWater Marketing Mix: Promotion

Target Audience- active lifestyle SmartWater target audience will be the 18-40 year olds. We want to target the young ‘hip’ and upcoming age. The younger half of the target audience will be college students who need a beverage to keep them hydrated. The other portion of our audience will be young businessmen and women who are beginning to establish stable careers and take an interest in maintaining and looking after their health.

Geographic scope In order to make a push in areas that have been recognised as having potential for the brand SmartWater, advertisement campaigns will be mainly placed around the universities in Singapore and the prime business areas to catch the attention of students and the active businessmen and women. Advertisements will be placed in lifestyle magazines, on buses, in train stations and via social media platforms. The placement will create awareness both publicly and also in the key market areas.

Objective - SmartWater considered the smartest choice for a healthy beverage for efficient hydration.

Advertising campaign/slogan ‘Brains perform best when they are hydrated’

49

Advertising Mood Board

50

51

Rationale: The image of the woman suspended in time in the pose, gives the impression that she carries out the activity with such ease. This pose is a famous yoga pose which strains your abs muscle and requires one to be well hydrated and fit to hold that pose for a period of time. SmartWater’s infusion of electrolytes keeps you hydrated and fit for efficient functioning, hence, communicating that even you can do this with ease. Plus no added sugars/calories will

Hierarchy of effects model

-During the launch year of the product, the first sector of the pyramid will be targeted. - During the growth phase, the remainder 2 sectors of the pyramid will be aimed for

52

Outcomes - Created brand awareness of SmartWater - SmartWater established as a brand for healthy consumers who are now knowledgeable on the health benefits.

-

Gain 20% brand awareness within its target market within its first year.

Medium Choices of Media mix: Billboards:

Transits:

Magazines

-Four billboards will be placed around the top 3 universities in the country (NUS, NTU,

-Ads on top 4 SMRT bus routes and at the top 5 business district SMRT stations

-Her world -Men’s health -Harpers bazaar -shape

and SMU)

Internet: Social media: -facebook page

53

Media plan Magazines About/Costs Her world

-

Men’s health

-

Harpers bazaar

-

Shape

-

Singapore’s best-read women’s magazine on fashion, beauty and lifestyle trends Monthly publication Readership: 203,000 Readership profile: predominately women; go getters, sophisticated, stylish and self-assured. Inside back cover – S$ 6.026 it’s an authority on male fitness, health, sex , fashion and grooming Monthly publication Readership: 105,000 Readership profile: predominately men; well-educated, health-conscious, intelligent, affluent and lead active lifestyles. Inside back cover: 4,500 a source that converges fashion and beauty with design, technology and culture. Monthly publication Readership: Readership profile: predominately women; they personify self-assurance, modern sophistication, high aspirations and is unwilling to compromise when it comes to quality, style and good taste. Colour full page: 4,300 Singapore’s only mind and body guide for women. Provides the latest practical information on wellness, beauty, health and nutrition. Monthly publication Readership: 46,000 Readership profile: young, well educated, health conscious, smart, affluent and lives an 55

active lifestyle. Colour full page: 3,500 Dhoby Ghaut , Orchard, Bayfront, Raffles, harbour front

SMRT STATIONS

Buses

-

Billboard

-

Platform screen doors (full length 96 doors) Minimum 4 weeks per ad Production cost: S$10,000 per station Total cost: S$30,000 per station Top 4 SMRT bus routes Single-deck rear Production cost s$380 1 week media: S$200 per bus Total cost : S$580 per bus Around the top 3 universities in Singapore 240 by 120 inches Production cost s$ 2500 Total cost: S$ 3500 per billboard

55

PROMOTION TIME- LINE YEAR ONE Launch Phase st

Launch Phase nd 2 Quarter

1 Quarter

Launch Phase rd 3 Quarter

YEAR TWO Launch Phase th 4 Quarter

Growth phase st 1 Quarter

Growth phase nd 2 Quarter

Growth Phase rd 3 Quarter

YEAR THREE Growth Phase th 4 Quarter

Growth phase 2 st 1 Quarter

Growth phase 2 nd

2 Magazines( Her world, men’s health, shape)

Magazine( Harpers bazaar)

Magazine( Her world, men’s health)

Billboards (4) 2 SMRT stations(orcha rd, raffles)

Buses(singledeck rear, 4 bus routes)

2 SMRT stations (Harbour front, Dhoby ghaut)

Magazine (Men’s health, Harpers bazaar)

Quarter

Magazine

Magazine

Magazine

( Her world, shape)

(Her world, Men’s health)

(Her world)

2 SMRT stations (cityhall, orchard)

1 SMRT stations (Dhoby ghaut)

1 SMRT station (Raffles

Buses(singl e-deck rear, 2 bus routes)

Buses( Single-deck rear, 4 bus routes)

Buses( single-deck rear, 3 bus routes)

Magazine( Harpers Bazaar

Growth Phase 2 th 4 Quarter Magazine(M en’s health, shape)

Billboard (4)

1 SMRT station ( Bay front)

3 SMRT stations (harbourfront, Orchard, Dhoby ghaut)

Buses( single-deck rear, 4 bus routes)

Buses( singledeck rear, 4 bus routes)

Reach for launch phase: 228,000

Magazine(Her world , shape)

Growth Phase 2 rd 3 Quarter

1 SMRT station (bayfront)

Reach for Growth phase: 432,000

3 SMRT stations (Orchard, Dhoby ghaut, Harbour front) Buses(Singl e-deck rear 2 bus routes)

Buses(singl es-deck rear, 4 bus routes)

Reach growth phase 2: 648,000 56

TOTAL PROMOTIONAL COSTS – Launch and growth phase Exhibit.16 Year one(launch phase)

Year two( growth phase)

Year three( growth phase2)

S$36,652- full colour page

S$27,852 - Full colour page

S$ 22,826 – Full colour page

(8 magazine insertions)

( 6 magazine insertions)

(6 magazine insertions)

S$240,000 – eight insertions

S$120,000 – Four insertions

S$ 120,000 – Four insertions

Buses( single-deck rear) 4 routes

S$6,960 – 16 Insertions

S$3,480 – six insertions

S$ 5,220 – Nine insertions

Billboards(NUS, NTU, SMU, and SUTD )

S$ 14000 – 4 insertions

S$ 14000 – 4 insertions

S$ 14000 – 4 insertions

S$ 297,612

S$165,332

S$148,046

Promotions Magazines( Her world, Men’s health, Shape, Harpers bazaar)

SMRT stations(Dhoby Ghaut , Orchard, Bayfront, Raffles, harbour front)

Total expenditure

57

Budgeting& Forecasts

58

6.0

Sales Forecast

Forecasted unit sales per SKU a) 1.5 litre sales forecast

Exhibit.17 Year 1 Launch phase

Year2 Growth phase

Year 3 Consolidation Phase

Forecast unit sale

S$ 10,000

S$ 20000

S$35000

Revenue( selling price to retailers @ S$ 1.8)

S$ 18,000

S$ 36,000

S$ 63,000

Cost of sales(landed cost, S$ 1.05 per unit)

S$ 10,500

S$21,000

S$36,750

Gross margin

S$ 7,500

S$ 15,000

S$ 26250

b) 1 Litre sales forecast

Exhibit.18 Year 1

Year 2

Year 3

Growth phase

Growth phase

Consolidation Phase

Forecast unit sale

30,000

36,000

49,000

Revenue( selling price to retailers @ S$ 1.6)

48,000

58,000

79,000

59

Cost of sales (landed cost, S$ 0.85 per unit)

25,500

30,600

41,650

Gross margin

25,500

27,400

37,350

C) 750 ml sales forecast

Exhibit.19 Year 1

Year 2

Year 3

Launch phase

Growth Phase

Consolidation Phase

20,000

28,000

42,000

Revenue( selling price to retailers @S$ 1.4)

S$ 28,000

S$ 40,000

S$ 59,000

Cost of sales ( landed cost, S$ 0.65 per unit)

S$ 13,000

S$18,200

S$ 27,300

Gross margin

S$ 15,000

S$ 21,800

S$ 31,700

Forecast unit sale

60

d) 25 oz sales forecast

Exhibit.20 Year 1

Year 2

Year 3

Launch phase

Growth Phase

Consolidation Phase

20,000

28,000

42,000

Revenue(selling price to retailers @S$ 1.20)

S$ 24,000

S$ 34,000

5S$ 1,000

Cost of goods (landed cost, 0.45 per unit)

S$ 9,000

S$ 12,600

S$ 18,900

Gross margin

S$ 15,000

S$ 21,400

S$ 32,100

Forecast unit sale

61

Total sales forecast – Profit & loss statement Exhibit.21

Forecasted period

Year 1

Year 2

Year 3

Launch Phase

Growth Phase

Consolidation phase

S$ 118,000

S$ 168,000

S$ 254,000

- S$ 57,500

- S$ 82,000

- S$ 124,00

S$ 60,500

S$ 86,000

S$ 130,000

S$ 60,500

S$ 86,000

S$ 130,000

Wages

S$ 10,000

S$ 10,500

11,000

Transportation

S$ 8,000

S$ 9,000

9,000

INCOME REVENUE Cost of goods sold Gross profit TOTAL GROSS PROFIT EXPENSES Operating expenses

62

Storage

10,000

S$ 25000

25,000

Advertising

S$ 297,612

S$165,332

S$148,046

TOTAL OPERATING EXPENSES

S$ 325,600

S$ 132,480

S$ 193,046

S$ 325,600

S$ 209,800

S$ 193,046

(S$ 265,100)

(S$ 123,8000

(S$63,046)

TOTAL EXPENSES NET INCOME NET INCOME(LOSS)

Implication: New products introduced into a market incur losses during its first few years until it’s fully accepted in the market.

63

7.0

SmartWater marketing Mix summary

Product

Price

 Positioned as a healthy beverage for the young and active consumers

 Market-based pricing approach

 Introducing four different SKU’s into the market

 selling price to retailers derived by adding a 60% profit margin

 Sleek bullet shaped bottle using dual branding on both sides of the bottle label

 Retailing price derived by Singapore standard retail top up of 20%

 Label printing via silk screening

 5 to 7% Quantity discounts offered to retailers

Place

Promotion

 Distributed to retail and convenience stores via direct marketing around

 Advertisements placed in magazines, train stations, on buses and billboards  Campaign slogan – ‘brains perform best when hydrated’

st

 15% of each retail chain outlet targeted for the 1 year  25% of each retail chain outlet targeted for the 2nd year  40% of each retail chain outlet targeted for the 3rd year

64

References Online sources The Edge. 2012. Nov 16: GDP forecast, OUE, F&N, SIA. [ONLINE] Available at: http://www.theedgesingapore.com/the-daily-edge/business/41166-nov-16gdp-forecast-oue-fan-sia.html. [Accessed 27 December 12]. Ministry of manpower. 2012. Singapore unemployment rate. [ONLINE] Available at: http://www.tradingeconomics.com/singapore/unemployment-rate. [Accessed 27 January 13]. Ministry of trade and industry. 2012. Singapore GDP growth rate. [ONLINE] Available at: http://www.tradingeconomics.com/singapore/gdp-growth. [Accessed 27 January 13]. Ministry of trade and industry. 2012. Singapore inflation rate. [ONLINE] Available at: http://www.tradingeconomics.com/singapore/inflation-cpi. [Accessed 27 January 13]. Department of statistics Singapore. 2012. Singapore in Figures. [ONLINE] Available at: http://www.singstat.gov.sg/pubn/reference/sif2012.pdf. [Accessed 27 January 13]. Nielsen. 2011. Singaporeans can’t get enough of digital media. [ONLINE] Available at: http://www.sg.nielsen.com/site/NewsReleaseJuly112011.shtml. [Accessed 27 January 13]. RIKVIN (Singapore company registration specialists). 2012. Lemon law will boost will boost retail Singapore's industry. [ONLINE] Available at: http://www.prweb.com/releases/singapore/lemon-law-news/prweb9273922.htm. [Accessed 27 January 13]. Singapore Law academy. 2013. Competition law. [ONLINE] Available at: http://www.singaporelaw.sg/content/CompetitionLaw.html. [Accessed 27 December 12]. Ministry of environment and waste collection. 2012. Waste production. [ONLINE] Available at: http://app.mewr.gov.sg/web/Contents/contents.aspx?contid=1539. [Accessed 27 December 12]. Ministry of finance. 2012. Corporate income tax. [ONLINE] Available at: http://app.mof.gov.sg/(X(1)S(1l2jv4553bx2ga55s4tsqf55))/TemSub.aspx?pagesid=20090918965913283168&pagemode=live&&AspxAutoDetectCookieSuppor t=1. [Accessed 27 December 12]. 65

Movemedia. 2012. Media rate books. [ONLINE] Available at: http://www.moovemedia.com.sg/media.html. [Accessed 05 February 13]. Singapore press holding. 2012. Magazines. [ONLINE] Available at: http://www.sph.com.sg/pdf/Mediapedia/2nd/SPHMediapedia_Magazines.pdf. [Accessed 05 February 13]. Baure media group. 2012. Harper’s bazaar Singapore. [ONLINE] Available at: http://www.acpmagazines.com.sg/harpers-bazaar-singapore.htm. [Accessed 05 February 13]. Diseno advertising. 2012. Shape rate card 2012. [ONLINE] Available at: http://www.diseno.com.sg/services/advertising/rate-cards/. [Accessed 05 February 13]. Diseno advertising. 2012. Men's health rate card 2012. [ONLINE] Available at: http://www.diseno.com.sg/services/advertising/rate-cards/. [Accessed 05 February 13]. Diseno advertising. 2012. Her world rate card 2012. [ONLINE] Available at: http://www.diseno.com.sg/services/advertising/rate-cards/. [Accessed 05 February 13]. Yeo Hiap Seng. 2012. Refuel with H-TWO-O. [ONLINE] Available at: http://www.yeos.com.sg/h-two-o/original/Refuel_With_H-TWO-O_Original.php. [Accessed 05 February 13]. Fraser and Neave. 2012. Rehydrate with 100 plus. [ONLINE] Available at: http://www.100plus.co.za/site/home. [Accessed 05 February 13]. Otsuka pharmaceutical. 2012. Pocari sweat. [ONLINE] Available at: http://www.pocarisweat.com.ph/default.aspx. [Accessed 05 February 13]. Nielsen. 2011. Health consciousness increases in Singapore. [ONLINE] Available at: http://healthmad.com/weight-loss/health-consciousness-increase-insingapore/. [Accessed 25 December 12].

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Reports/Databases Euromonitor. 2012. Singapore soft drink industry. [ONLINE] Available at: http://www.euromonitor.com/soft-drinks-insingapore/report. [Accessed 14 January 13]. Euromonitor. 2012. Consumer Lifestyle. [ONLINE] Available at: http://www.euromonitor.com/consumer-lifestyles-insingapore/report. [Accessed 14 January 13]. Euromonitor. 2012. Bottled water in Singapore. [ONLINE] Available at: http://www.euromonitor.com/bottled-water-insingapore/report. [Accessed 14 January 13]. Euromonitor. 2012. Energy and sports drinks in Singapore. [ONLINE] Available at: http://www.euromonitor.com/sportsand-energy-drinks-in-singapore/report. [Accessed 14 January 13].

BOOKS Kotler Philip, R, 2010. Principles of marketing. 13th ed. Singapore: Pearson.

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List of Exhibits

Page no

Exhibit.1---------------------------------------------------------------------------------------------------------------------------------------------------8 Exhibit.2---------------------------------------------------------------------------------------------------------------------------------------------------10 Exhibit.3---------------------------------------------------------------------------------------------------------------------------------------------------11 Exhibit.4---------------------------------------------------------------------------------------------------------------------------------------------------12 Exhibit.5---------------------------------------------------------------------------------------------------------------------------------------------------14 Exhibit.6---------------------------------------------------------------------------------------------------------------------------------------------------33 Exhibit.7---------------------------------------------------------------------------------------------------------------------------------------------------33 - 34 Exhibit.8---------------------------------------------------------------------------------------------------------------------------------------------------34 Exhibit.9---------------------------------------------------------------------------------------------------------------------------------------------------35 Exhibit.10--------------------------------------------------------------------------------------------------------------------------------------------------42 Exhibit.11--------------------------------------------------------------------------------------------------------------------------------------------------43 Exhibit.12---------------------------------------------------------------------------------------------------------------------------------------------------44 Exhibit.13---------------------------------------------------------------------------------------------------------------------------------------------------44 Exhibit.14---------------------------------------------------------------------------------------------------------------------------------------------------45 Exhibit.15---------------------------------------------------------------------------------------------------------------------------------------------------46 Exhibit.16---------------------------------------------------------------------------------------------------------------------------------------------------57 Exhibit.17---------------------------------------------------------------------------------------------------------------------------------------------------59 Exhibit.18---------------------------------------------------------------------------------------------------------------------------------------------------59 - 60 Exhibit.19---------------------------------------------------------------------------------------------------------------------------------------------------60 Exhibit.20---------------------------------------------------------------------------------------------------------------------------------------------------61 Exhibit.21 --------------------------------------------------------------------------------------------------------------------------------------------------62

68

Appendix Questionnaire survey Objective: target market preferences for enhanced bottled water. 1. Were you born after 1962? Yes

no (terminate)

2. Which of the following products do you drink?

100PLUS

POCARI SWEAT

Gatorade H-TWO-O

69

VitaminWater

Pink Dolphin

None of the above (terminate)

3. What comes to mind when you think of 100Plus?

4. What comes to mind when you think H-two-o?

5. What comes to mind when you think of Gatorade?

70

6. What comes to mind when you think of Pocari sweat?

7. What comes to mind when you think of VitaminWater?

8. What comes to mind when you of Pink Dolphin?

9. Please rate your three most preferred drinks 1 (most preferred) to 3 (least preferred). Pocari sweat VitaminWater H-two-o Gatorade 100plus Pink Dolphin

---------------------------------------------------------------------

71

10. On what occasions do you usually drink brands such as 100plus/H-two-o/VitaminWater /Gatorade?

11. Where do you normally buy drinks such as 100plus/H-two-o/VitaminWater /Gatorade? Vending Machine Eating outlet Supermarkets Convenience store (e.g. 7 /11, cheers) 12. How often do you drink brands such as100plus/H-two-o/VitaminWater /Gatorade? Everyday

Weekly

Every other week

monthly

less frequently

13. When you are thirsty, what type of drink do you usually have?

Objective: Consumer thoughts and feeling towards SmartWater

14. (A) Would you try a drink that tastes like water, with no sweetener/flavours but has other ingredients similar to 100plus/Gatorade/VitaminWater Yes No 72

(B) If yes. Why?

(C). If no, why?

15. (A) Imagine a drink that tastes like water, with no sweetener/flavours but with ingredients similar to 100Plus/Gatorade/VitaminWater. What do you think of the following names? ‘SmartWater’

‘Fitness’

‘Boost’

‘Healthy Life'

73

(B) Which name do you prefer? Healthy Life Boost Fitness SmartWater

(C) Why do you prefer this name?

16. A) For a drink that tastes like water, with no sweetener/flavours but with ingredients similar to 100plus/Gatorade, which bottle shape do you prefer? (choose one)

Bottle A

Bottle B

Bottle C

74

b) Reason for your choice?

Consumer profile 17. What is your occupation?

18. What do you like to do after work/School?

19. What do you like to do on weekends?

20. Which bottled/can/carton drinks do you consider healthy?

Thank you for your time

75