Table of Contents Brand Mantra - PowerPoint Presentation

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Table of Contents

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Brand

Mantra

Emotional Modifier

Descriptive Modifier

Brand Functions

RevitalizingHealthySpecialty Sports Drink

Emotional Modifier: “revitalizing” represents the theme and meaning behind the strong, favorable, and unique associations of tropical and hydrating. Tropical locations are seen as vacation destinations in which one can relax and recharge, and hydrating nourishes the body. By drinking ZICO, people receive the benefit of being revitalized whether its after a strenuous workout, or a night out on the town.

Healthy: “healthy” is one of the main strong, favorable, unique associations derived by the consumer. Other associations like natural and hydrating reinforce this “healthy” descriptive modifier. ZICO is a “healthy” specialty sports drink, and this descriptive modifier clarifies its nature compared to other sports drinks like Gatorade and

Powerade

that are more unhealthy because of their high sugar content.Brand Function: ZICO exists in the product category of a specialty sports drink. This product category is fitting for ZICO because it shares many POP’s as Powerade and Gatorade like revitalizing, hydrating, and energy.

Positioning

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Zico

has created a strong, favorable, unique association with consumers as a hydrating, healthy, and tropical sports drink. Consumers also associated

Zico

with sweet, natural flavors. This created strong points of parity between the

Zico

and its competitors, creating points of difference in the level at which association describes the products.

Zico’s

negative associations include the taste and expensive nature.

Strong, Favorable, Unique Associations with

ZicoPositive Perceptions

Negative Perceptions

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Because of the industry’s relatively new nature, consumers most commonly linked

Zico’s

competitors associations similar to those of

Zico

: hydrating, healthy, and refreshing sports drinks. They also saw coconut water as a hangover cure and trendy.

Consumers negatively associated

Zico’s

competitors with a lack of flavor and a lack of credibility as a new entrant in the sports drinks industry.

Strong, Favorable, Unique Associations with competitors

Positive Perceptions

Negative Perceptions

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Discount Price

Premium Price

Most Effective

In Hydrating

Least Effective

In Hydrating

Water

Gatorade

We placed effectiveness of hydration (POP) and pricing strategy (POD) on the perceptual map axes. 52% of respondents believe ZICO is priced higher than other coconut waters, which shows a premium pricing strategy. In regard to hydrating effectiveness, ZICO contains the hydrating ingredients of electrolytes and potassium. The prominent associations of “hydrating” and “refreshing” on the mental map show consumers’ perception of ZICO being an effective hydration beverage.

Positioning

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Positioning Statement:

“

Zico

is the only specialty sports drink that creates a healthy, hydrating, and revitalizing experience for active, young adults.”

Positioning

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Depth of Brand Awareness

Recall:

When asked if surveyors had ever heard of coconut water 30% said no. Of the 70% who responded yes, when asked to list all coconut water brands respondents could think of, 40% said ZICO followed by

VitaCoco

with 35% brand recall. O.N.E had 19% brand recall and C2O followed with 1%, see graph below.

Recognition: When prompted and asked, “Given the following list of coconut waters, which brands have you heard of? Mark all that apply.” 63% recognized ZICO, followed by VitaCoco

with 50%.Breadth of Brand Awareness

40% of respondents answered “Undecided” when asked how likely they are to purchase ZICO, followed by “Unlikely” with 20%.

Evaluations: What coconut water brands can you think of?

-Although we see strong brand awarenessfor ZICO amongst consumers who recognize the product category, the purchase consideration is very low. -We can attribute this low purchase consideration to the newness of this category as a whole. Although 70% of respondents know the category of coconut water, that is still low when you consider the high awarenessof other categories like soft drinks or energy drinks.

CBBE: Brand Salience

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When asked, how satisfied are you with ZICO compared to other coconut waters, 29% of respondents said

very satisfied

and 26% said

satisfied

. 52% of respondents believe that compared to other coconut waters, ZICO is generally priced

higher. When asked to rank on a scale from 1 to 5 with 5 being the highest, how much you like the look, feel, and other design aspects of ZICO, 23% of participants ranked ZICO a 5 and 42% ranked a 4. Evaluations:

-Respondents have strong feelings of satisfaction with ZICO.-The ZICO premium pricing has not gone unnoticed

by consumers, and yet they still have high Compared to other coconut waters,

feelings of satisfaction with ZICO. how satisfied are you with ZICO?

-In terms of design aspects and aesthetics ZICO ranks highly among respondents.-The sleek design and premium pricing help to contribute to a strong brand image of quality and superiority. CBBE: Brand Performance

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User profiles

79% of survey participants’ ages ranged from 18 to 25. When asked what age group you would expect to purchase and consume coconut water, 64% answered 18 to 25. When asked what is your impression of people who drink coconut water 48% answered neutral, followed by 35% with positive. When given several choices, 39% of respondents said

upper class

was the term that best described ZICO, followed by

honest

(32%) and down-to-earth (29%). When asked what kind of memories came to mind when thinking of ZICO 45% answered neutral which was closely followed by “happy” with 41%. 

Purchase & Usage situations

76% of respondents said they would expect to find coconut water in specialty markets and 58% said they have actually seen coconut water in specialty markets. When asked where they are most likely to purchase ZICO 29% said at Ralphs, then Trader Joe’s (25%), and finally Whole Foods (21%). When asked which drink respondents would be most likely to have after a workout only 21% responded with ZICO. The majority, 34%, said they would drink Gatorade after a workout.

 Evaluations:

-We see here the premium pricing and other aspects of ZICO have caused consumers to label the product as upper class. -In terms of being categorized as a specialty sports drink, most consumers feel that after a workout they would go with a more traditional sports drink like Gatorade.CBBE: Brand Imagery

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Brand Quality:

50% of respondents said ZICO is high quality and 18% said it is of very high quality. When asked if ZICO is of good value 29% of participants said it is a

good value

and 14% said it is a

very good value

. Brand Credibility: In order to understand perceived expertise we asked participants how knowledgeable the makers of ZICO are 48% of participants said knowledgeable and 17% said

very knowledgeable. Participants were asked, how much the makers of ZICO understand their needs, 45% of participants said

understand and 3% said highly understand

.

Brand Consideration: 40% of participants said they would recommend ZICO to their friends.  Brand Superiority: When asked to compare coconut waters for superiority, 69% of participants chose ZICO as superior over C2O, O.N.E., VitaCoco, and Harvest Bay.  Evaluations:-We see overall strong positive associations and opinions of ZICO.-Consumers see ZICO as premium priced, superior, a good value, and they would recommend it to their friends. -The strong perceived expertise could be due in large part to the premium pricing. Consumers tend to think that products priced higher are of better quality and made by experts. -Although only 40% of respondents said they would recommend ZICO to a friend, we feel this is very strong for a brand so new. We feel we are relevant to our customers and the perceived superiority will in the long run evolve into customer loyalty and ultimately strong brand resonance.

CBBE: Brand Judgments

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Please complete the following question: "ZICO gives me a feeling of...”

(Mark all that apply)

#

Answer

Response

%1Social Approval

7

24%

2

Excitement828%3Warmth724%4

Security

2

7%

5

Fun

11

38%

6

Self Respect

6

21%

7

Other (Please Specify)

13

45%

Evaluations:

-When asked what feelings ZICO provokes 38% of respondents said

fun

and 28% said

excitement

.

-Sports drinks are typically thought of as very fun, exciting, outdoorsy, and refreshing products. With consumers seeing ZICO as a specialty sports drink it is bound to evoke feelings of fun and excitement.

-Also, the novelty of trying a new product like coconut water could be a contributing factor to these response feelings

CBBE: Brand Feelings

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Evaluations:-Overall, brand resonance is low as displayed by the high “disagree” percentage on these questions. There is not a sense of community or loyalty around the brand.

-Although, 34% of respondents said they would really miss ZICO if it went away. This indicates that as ZICO matures (raising awareness), they may be able to build brand resonance.

CBBE: Brand Resonance

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14 oz BOTTLE

Natural

Pomberry

Lima Citron

Natural

Mango

Passion Fruit

11oz TETRA PAK

Natural

Mango

Passion Fruit

33oz (1 liter) TETRA PAK

The core benefit that ZICO satisfies is its ability to provide a healthy natural rapid hydration and replenishment. ZICO achieves this core benefit through the high amounts of potassium and electrolytes that exist in its coconut water. Also, ZICO contains zero added sugar, zero cholesterol, and zero fat. Although ZICO still sells its

Tetrapak

, it is the first and only coconut water company to bottle coconut water in a plastic bottle. With the addition of the plastic

bottles and new flavors,

ZICO is able to command more shelf space in retail establishments, which increases their brand awareness among consumers.

5Ps: Product

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ZICO builds brand equity through its premium pricing

strategy.

Compared to the competition, ZICO is priced fifty

to ninety cents higher than the competition with an average price of $2.58

(source

). The plastic bottle is priced at a higher premium than the Tetrapak with an average price of $2.88. The premium price creates a brand image of quality and superiority compared to the lower priced competition of VitaCoco and O.N.E.. Additionally, since ZICO and coconut water itself is relatively new, premium pricing is used to legitimize the benefits of providing replenishment and hydration.

1.67

2.00

2.58

5Ps: Price

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In the beginning, ZICO targeted Yoga studios, creating a brand image of healthiness, and quality. As a buzz was created within Yoga studios across the country, ZICO expanded its distribution

. ZICO can now be purchased

at larger establishments like Ralphs, Safeway, Amazon.com

, and Whole Foods. By making ZICO widely accessible in large establishments, people become more aware of the product, thus increasing the brand equity of ZICO.

5Ps: Place

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ZICO builds brand equity by taking advantage of the benefits of experiential marketing to create a positive brand image. ZICO uses experiential marketing by providing free samples at events

like The L.A.

Marathon , Toyota U.S. Open Triathlon, and

Bikram Yoga

Sessions. These events feature healthy activities, which reinforce

ZICO’s brand image. Also, ZICO hopes people attending these events will attach the positive experiences they had at the event with drinking ZICO. In order to increase brand awareness, ZICO created a billboard featuring Molly Sims located in New York city on the corner of Thompson and Watts Street as part of its “I Am Natural” campaign. This was ZICO’s

first attempt at large scale promotion, and reflects their goal of increasing brand awareness. In an effort to incorporate consumers within this promotion, ZICO created a contest to replace Molly Sims on the billboard. Users on their

Facebook page were urged to submit photos of themselves being active, and the photos were judged by the CEO Mark

Rampolla, Molly Sims, and distinguished nutritionists.

5Ps: Promotion

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ZICO positions itself as the natural, healthy specialty sports drink. ZICO positions itself away from sugary drinks like

Powerade

and Gatorade by highlighting the zero added sugar, cholesterol, and fat within its beverage.

Addtionally

, the “I Am Natural” campaign is intended to promote the natural health benefits of ZICO. This positioning reinforces

ZICO’s desired brand image of being a healthy, quality product. By positioning the product in this way, and maintaining this brand image, ZICO strives to gain awareness within the health-conscious consumer.

5Ps: Positioning

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Brand Name

The simplicity

of the name ZICO reduces the effort consumers have to make to comprehend and process it

The name’s short length facilitates recall because it is easy to encode and store

in the memory

Since it is a non-meaningful name, it can easily be transferred to other countries

ZICO’s pronunciation, however, hinders brand awareness

ZICO (Zee-Koh) is difficult for many to pronounce it hinders word-of-mouth exposure that can help build strong memory links

Those who are unsure of how to pronounce ZICO stray away from actually saying it out loudAlthough it is not familiar nor meaningful, the name is differentiated, distinctive, and uniqueThe brand name is an inherently unique, made-up word that improves brand recognitionThe “co” in ZICO can also remind consumers of coconut water

Brand Elements

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Slogan

ZICO’s slogan, “I Am Natural,”

contributes to brand equity by promoting its quality, healthy brand image

It emphasizes the all-natural benefit of the brand and thereby shows how the product is a healthier alternative to other sports drinks. This ultimately enhances the brand image of ZICO being a quality, healthy product.

It serves as an indispensible means of summarizing and translating the intent of the marketing program: to market ZICO as an all-natural way to re-hydrate

Brand Elements

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Packaging

ZICO’s move from

carton to bottle plays a role in building brand equity directly through points of difference created by functional elements

ZICO delivers the first all-natural, aseptic bottled coconut water in the world.

No other coconut

water competitor bottles their beverage in a plastic bottle

The

ZICO bottle allows the brand to provide ideal, on-the-go hydration for an active lifestyle.

ZICO’s new bottle packaging also helps build brand equity indirectly through the reinforcement of brand

ImageThe 100% recyclable bottles exemplifies ZICO’s commitment social and environmental responsibilityAlso, the plastic bottle can be perceived as a more premium product compared to the cardboard Tetrapak

Brand Elements

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Molly Sims

By inciting interest and excitement, supermodel Molly Sims

enhanced brand likeability, awareness, and credibility

Sims has appeared on a ZICO billboard to help capture the public’s attention. ZICO is leveraging Sims celebrity status and to draw awareness to ZICO

Sims has also handed out bottles of the drink while informing them about the benefits. Sims is a credible source and fits the brand image of ZICO because she lives a healthy, fit lifestyle. Sim’s

approval of ZICO adds credibility to the functional benefits of ZICO

Brand Elements

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ZICO’s New

Face of the “I Am Natural” Campaign

Fitness enthusiast Amanda Russell was chosen as the new face of the campaign to enhance brand likability and awareness

Russell, an avid athlete who is in need of a product to naturally re-hydrate, embodies the brand’s core and thereby is able to reinforce the brand’s key product benefits

Awareness and likability were created by having users submit photos of themselves on

ZICO’s

Facebook page, making the brand relevant to consumers and creating buzz around the contest

Russell is considered to truly exemplify what ZICO is all about because she is athletic, passionate, and health-conscious. Thus, she inspires others to seek out a healthy lifestyle and naturally replenish with ZICO.

Brand Elements

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Celebrities

A celebrity’s use of ZICO is publicized by ZICO on their

Facebook

page and

website:

Besides Molly Sims, ZICO does not pay celebrities to use ZICO, but ZICO does publicize pictures taken of celebrities holding ZICO

Celebrities include Gisele Bundchen, Alex Rodriguez, Kelly Slater, and Courtney Cox

By choosing to publicize ZIC) use with these celebrities, ZICO is able to increase brand awareness and credibility. These celebrities are fit, and healthy, which is in line with

ZICO’s overall brand image. Also, it sends a message of credibility to the consumers that ZICO can help them attain this fit lifestyle.

Sporting EventsZICO sponsors sporting events like triathlons, surf contests, and Yoga sessions:By sponsoring these events and passing out samples, ZICO is able to raise awareness of its brand within its target market. Additionally, people can transfer associations from the sporting events to ZICO, maintaining its brand image of being a healthy and quality product. Some associations that could be transferred include healthy, fun, exciting, and naturalSecondary Brand Knowledge

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16

By focusing its distribution initially to mainly high end “organic” grocers like Whole foods and

Tader

Joe’s, ZICO was able to:

Transfer the associations of “quality”, “natural”, and “high-class” from these grocers to its own brand

Large retail grocers like VONS and Ralphs do not have these same associations that are in line with

ZICO’s image of premium quality and healthiness. VeeV

ZICO’s

engaged in co-branding by by mixing its beverage with VeeV (an acai spirit):VeeV with coconut water is mixed onsite and promoted at high end clubs in Los AngelesVeeV, like ZICO, is a premium product, that holds associations of quality and uniquenessThis ingredient branding reinforces the premium image ZICO strives to uphold, and increases brand awareness among its young adult demographic target market

Secondary Brand Knowledge

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STRENGTHS:

-Perceived as high quality and upper class by consumers

-Premium pricing sets it apart from its competitors

-Recognized as being created by very knowledgeable people

-Variety of flavors distinguishes it from competitors

 WEAKNESSES:-Low brand awareness amongst consumers unfamiliar with coconut water as an industry-A new brand within a relatively new industry leads to low brand recognition and recall-Have not strongly differentiated themselves as a brand from other coconut waters-Not a very strong following of consumers. Can easily be replaced by other coconut waters if not available to the consumer

 EQUITY RANKING: 4

-Zico

is still a very new product trying to break through in a developing industry. Coconut water in general is still new and is seen not as a daily drink but as something trendy and as a specialty drink.

Consumer Equity Ranking