Please answer the Case Study and short essay question below.
Case study: Peeking at a 21st century brand; bling h2o.
(This case will be provided in your actual
exam question paper as well.)
A new chapter in the bottled water industry has been
written. Bling h2o, bottled in Tennessee at the English
Mountain Spring, is an amalgam of modern sculpture, Hollywood, and truly great water. The brandâ€™s creator,
Hollywood screenwriter Kevin Boyd, envisioned a fine water presentation that made a statement
Cristal Champagne and Tiffany jewels.
Boyd knows the importance of image and what your choice in bottled
water conveys to the public. In Hollywood it seems the bottled water one carries has become an importantprop
and it has become the land
of the up market waters-bottles are becoming statements of coolness and bling h2o
was fashioned to make a defining statement. The mission was to offer a product with an exquisite face to match
exquisite taste. The product is strategically positioned to
target the expanding super
luxury consumer market.
Available in US$40 750ml and US$24 350ml versions, the frosted, corked bottles are emblazoned with hand
applied, Swarovski crystals. Not surprisingly, the newspapers are reporting that the Goddess of conspicuous consumption Paris Hilton â€œhas tasted the waterâ€ as has her dog Tinkerbell.
The drink has also shown up at the Grammyâ€™s, Emmyâ€™s and MTV Video Music Awards in the hands of celebrities
such as Jamie Foxx, Mariah Carey and Shaquille Oâ€™Neal.
Bling h2oâ€™s museum quality glazed bottles, each onehand detailed with genuine Swarovski crystals, would
command attention regardless what was inside. Bling h2o is virtually nitrate-free, sodium free, and contains
minimal chlorides. The 100 milligrams per litre of Bicarbonate account for the pH of 7.66, an optima
l pH level for those who appreciate a slightly sweet taste.
The bling h2o Christmas Collection 2009 was being touted as the worldâ€™s most expensive bottle of water and comes in two versions, Swarovski Crystal and opaque green, red or red and white decorat
Just how do you differentiate a product like bottled water? Itâ€™s an important question when you realise that
Americans drink more than 25 billion litres of bottled water a year at prices greater than gasoline. Bottled water sales have risen 50% per person in less than a decade, which isnâ€™t bad for a core product that varies little, and is
at least a thousand times more expensive than tap water which is readily available as an alternative. In Europe,
water is even bigger businessâ€“
Western Europeans drink more than half the worldâ€™s bottled water.
Bling h2o has been featured at many recent celebrity events including the MTV Video Music Awards and
televisionâ€™s biggest event, The Emmys. Initially introduced to hand-
selected athletes and actors, bling h2o
excitedly expanding its availability.
Q.A1 (15 marks)
What market positioning do you think has been adopted in the US market for bling h2o? Do you
think the company priced their bottled water correctly? Explain your answers with reference to
marketing pricing strategies for
new products (i.e., skimming vs penetration pricing).
Q.A2 (15 marks
Discuss the elements in the communication process. With reference to the communication
process, evaluate the effectiveness of the communication strategies used by bling h2o for the
unch and promotion of the product in the United States.
Q.A3 (15 marks
List and discuss three different types of ethical concerns people might have about this product. If
you were the brand manager for bling h2o, how would you defend your marketing strategy?
Define and differentiate between the core product, the actual product and the augmented
product as these concepts apply in the motorcar industry.
Q.B2 (12.5 marks)
Discuss the differences among the intensive, selective and exclusive distribution strategies.
The characteristics of convenience, shopping, specialty and unsought goods play a major
role in determining the marketing mix for products in each of these categories. Briefly
describe the distribution strategies (intensive, selective, or exclusive) of each type
product. Which channel member(s) is/are most likely to bear the brunt of the promotional
burden for each?
Discuss, with three examples, the ways that companies are leveraging interactive
communications technologies to tap consumers
for message ideas and actual
Compare simple lists such as a mailing list with a customer database. How has the
implementation of Do Not Call legislation changed telephone marketing?
Q.B5 (12.5 marks)
List and discuss
three common criticisms of marketing. For each criticism, state how you, as
a marketer, might respond to the criticism.