Los Chicos Ishan, Katherine, Jesus, Rachel, and Justin
Background Key Findings Agenda Selected Growth Route Marketing Mix Strategies
BACKGROUND
MARKET SHARE OF BOTTLED SPARKLING WATER
KEY FINDINGS
WHY TOPO CHICO? Strong Carbonation 48% of survey respondents said ● that strong carbonation is important Mineral water has stronger ● carbonation than sparkling water Alternative to Soda About 63% of survey respondents ● shared that sparkling water serving as a replacement to soda is important About half said that it is very ● important
POWER OF FAMILY AND FRIENDS
ALTERNATIVE GROWTH ROUTES Target: Target: Target: Individuals who Driven millennials Individuals who want to ages 22 -34 that care about what strengthen aspire to have the goes into their connection to “yuppie” mindset bodies. their heritage and lifestyle Values: Values: Values: Clean body and Tradition, Accomplishment, mindset, personal identity, success, maturity, balanced lifestyle, authenticity, trendy, “I made it” all natural simplicity feeling Heritage Young Professionals Health Conscious
SELECTED GROWTH ROUTE
HERITAGE THE CELEBRATION OF Combines Emotional and Cultural Connection CULTURE Serves as an additional cultural touch point and Opportunity to Engage Communities INDIVIDUALISM Participation in the state with the second largest Hispanic and Mexican population Maintain Authenticity of Brand Combat consumer fears of corporate dilution
VIEWS OF COCA COLA “Topo Chico has taken off lately as part of the sparkling water brands but I feel that it has lost some of its authenticity as it became more popularized.” “Honestly, I liked it more before Coke bought it. Mainly because I am not too keen on giving my money to Coca Cola, but I will still drink it. I hope they keep it exactly the same.”
POSITIONING For those who desire rich Hispanic cultural engagement , Topo Chico provides an opportunity to join over a century’s worth of history and experiences As compared to any other beverage because Topo Chico is a brand based from ancient legend , giving you a natural, high quality experience with deep Mexican roots .
MARKETING MIX STRATEGIES
Channel Strategy Availability Product information Product comparison Convenience Supermarkets Hispanic Grocers
Supermarkets Hispanic Grocers
Marketing Communications Strategy
Mission Money ↑ customer engagement 1% of Coca-Cola ad spend = $3.96 ↑ customer acquisition million ad budget ↑ share of wallet Media Market Earned media, outdoor Texas Hispanic families artwork, sponsored ads Message Measurement “Es lo que somos”/”It’s what we are” Brand recall Traffic and sales data Retention rate
Pricing Strategy Premium Pricing ● Compete with Perrier/La Croix ● Minimalist promotional efforts ● Currently $0.80 ● Potential for 10% increase ○ Compete for better/more shelf spacing ○ Low involvement and Ease of access ●
Questions?
APPENDIX
CARBONATED WATER CATEGORY Mineral Water Club Soda Naturally carbonated water sourced from Artificially added compounds ● ● springs ● Ingredients like potassium-bicarbonate and Fizziness from naturally-occurring salts and potassium-sulfate lend a slightly salty taste to ● sulfur compounds the water Sells at a higher price than seltzer or club soda ● Tonic Water Sparkling/Seltzer Water More similar to a soft drink ● Plain old spring water carbonated with carbon ● Sweetened (usually with corn syrup) and ● dioxide infused with quinine, an ingredient that results Cheapest ● in tonic water's signature, slightly bitter taste. https://www.epicurious.com/ingredients/differences-mineral-water-tonic-club-soda-seltzer-article
HISTORICAL PERSPECTIVE 1930s Company begins 1940s bottling 1910s Leonides Paes 1990s Coca-Cola New products dies. Manuel L. Export to beverages launched and Barragan RGV and bottle cap assumes full other major 1900s 2017 started responsibility. American Topo Chico is Topo Chico is cities begins founded acquired by Coca Cola
Historical Perspective More Brands & Expansion Modernization & Growth ● The Company obtains the Coca-Cola soft The Beginning of a Brand ● After Mr. Leonides Paez death, Manuel L. Barragan drink franchise and becomes the first assumes full responsibility for the Company. Then ● Don Emilio Hellion, a French-born industrialist, based in company to bottle it in Mexico. brings an era of modernization and growth. Monterrey, joins as a shareholder of the Topo Chico SA ● Following the example of the local Brewery, The machine pedal era ends, and the company ● Bottling Company and appoints Mr. Manuel Trevino a truck fleet for soft drink distribution is acquires modern bottling equipment. Cantu, renowned industrial of the textile industry, as created. Mr. Barragan and Paez watch as, ● A bottling plant in the city of Matamoros, president of the Company. little by little, their dream of growing a Tamaulipas is inaugurated, and in 1947 one more in ● They later merge with the New York Company Wilson and modest bottling plant to a financially strong Nuevo Laredo, both still in operation today. Co. who names the American Eugene E. Lasting as his and job generating company becomes representative to take over management. reality. 1910s 1930s 1950s 1900s 1920s 1940s The Beginning of a Brand Pt 2 Modernization & Growth Pt 2 ● Mr. Manuel L. Barragan and Leonides Paez, who bring ● Bebidas Mundiales SA is founded, a modern experience in the field of advertising and accounting, joined plant created specially to bottle Coca-Cola the company. Foreign investors in the company offer to sell only. From that date on, the Topo Chico their shares to Mr. Barragan and Mr. Paez, without any Company would stop bottling Coca-Cola to guarantee but their work and moral character. engage entirely in Topo Chico Mineral Water, ● New products are launched. Also, by this time the use of the Joya with its different flavors and Topo Club bottle cap started. Ginger Ale. https://www.topochicousa.net/our-history/
Historical Perspective Strengthening From Within The Fusion of Big Business The company undergoes a number of administrative changes to PROCOR merges with two bottling strengthen its market and optimize resources. groups ARMA and ARGOS, creating a The productive capacity of the company, allowed undertaking an new company Embotelladora ARCA SA, ambitious plan for market expansion into the rest of the country. The the second largest Coca-Cola bottler Barragan Villarreal family decides to institutionalize their businesses group in Mexico. and create a board of directors. PROCOR group was formed, and Topo Chico Company became an integral part of it. 1970s 1990s 2011 1980s 2001 Going Over Borders A Great Partnership Export to the Rio Grande Valley and Embotelladoras ARCA merged with other major American cities begin. New Grupo Continental to integrate a new products are launched: Topo Chico group of international bottling, Arca Toronja, Topo Chico Gota de Limón, Continental, entering a new stage of Topo Chico Sangría and Frutier, a fruit growth. drink. https://www.topochicousa.net/our-history/
Target Market Topo Chico wants to reach a broader, more diverse audience – but it’s not moving away from its Hispanic consumers either. “I don’t think it’s a hipster brand,” he says. “It’s for people that want to be different, for urban creatives .” We want to sell to people that like premium products . David de la Garza Marketing Manager Topo Chico, USA http://kut.org/post/topo-chico-bubbling-mainstream
But parsing out Topo Chico’s actual versus perceived consumers is tricky because Topo’s marketing consultant says the company uses a third-party distributor and doesn’t know where the product goes from there. Topo Chico has built its brand on storytelling. The legend of a sick Aztec princess who was healed by spring water has now been partly replaced by a social media story that oozes hipness. No matter the story, the method seems to be working.
Brand Identity Classic, retro glass bottle-shape “It’s what we are” Legendary Aztec Princess Logo with curvy typescape Yellow, Red, and Black Color Scheme consistent on all packaging
Brand Identity Look & Feel The brand now has a hip, young look with a website full of bold colors and a streamlined design. The social media feeds are full of young, edgy people and artsy photos. Associations authentic, classic, carefree, laid back, cool without trying too hard, unpretentious, consistent, reliable, local and homegrown.
Hispanic Roots Mixologists Urban Creatives Grew up with the brand in Mexico or the Seeks a versatile mixer for cocktails Trendy millennial U.S. Bar-owners & DIY Involved in the music/art/film scene Topo Chico is an everyday, all-occasion beverage Use for craft cocktails Interested in products with a backstory Loyal following, but still more Bar-owners buy bulk, others buy on Will spend a little extra on a premium product price-conscious occasion
Competitive Brands Sparkling Mineral/Non-Mineral Water Category Carbonated Beverage Category Perrier Sugary Soft Drinks San Pellegrino La Croix
Mineral Water Club Soda Seltzer Water Tonic Water
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