Los Chicos Ishan, Katherine, Jesus, Rachel, and Justin Background - - PowerPoint PPT Presentation

Los Chicos Ishan, Katherine, Jesus, Rachel, and Justin

Agenda

Background Key Findings 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

Young Professionals Health Conscious

Target:

Individuals who want to strengthen connection to their heritage

Values:

Tradition, personal identity, authenticity, simplicity

Target:

Driven millennials ages 22 -34 that aspire to have the “yuppie” mindset and lifestyle

Values:

Accomplishment, success, maturity, trendy, “I made it” feeling

Target:

Individuals who care about what goes into their bodies.

Values:

Clean body and mindset, balanced lifestyle, all natural

Heritage

SELECTED GROWTH ROUTE

THE CELEBRATION OF

CULTURE

HERITAGE

and

INDIVIDUALISM

Combines Emotional and Cultural Connection

Serves as an additional cultural touch point

Opportunity to Engage Communities

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

Supermarkets

Product information Product comparison Convenience

Hispanic Grocers

Supermarkets Hispanic Grocers

Marketing Communications Strategy

Market

Texas Hispanic families

Message

“Es lo que somos”/”It’s what we are”

Money

1% of Coca-Cola ad spend = $3.96 million ad budget

Media

Earned media, outdoor artwork, sponsored ads

Measurement

Brand recall Traffic and sales data Retention rate

Mission

↑ customer engagement ↑ customer acquisition ↑ share of wallet

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

• Naturally carbonated water sourced from

springs

• Fizziness from naturally-occurring salts and

sulfur compounds

• Sells at a higher price than seltzer or club soda

Sparkling/Seltzer Water

• Plain old spring water carbonated with carbon

dioxide

• Cheapest

Club Soda

• Artificially added compounds
• Ingredients like potassium-bicarbonate and

potassium-sulfate lend a slightly salty taste to the water

Tonic Water

• More similar to a soft drink
• Sweetened (usually with corn syrup) and

infused with quinine, an ingredient that results in tonic water's signature, slightly bitter taste.

https://www.epicurious.com/ingredients/differences-mineral-water-tonic-club-soda-seltzer-article

HISTORICAL PERSPECTIVE

1900s Topo Chico is founded 1910s New products launched and bottle cap started 1930s Company begins bottling Coca-Cola beverages 1940s Leonides Paes

• dies. Manuel L.

Barragan assumes full responsibility. 1990s Export to RGV and

• ther major

American cities begins 2017 Topo Chico is acquired by Coca Cola

Historical Perspective

1900s

The Beginning of a Brand

• Don Emilio Hellion, a French-born industrialist, based in

Monterrey, joins as a shareholder of the Topo Chico SA Bottling Company and appoints Mr. Manuel Trevino Cantu, renowned industrial of the textile industry, as president of the Company.

• They later merge with the New York Company Wilson and
• Co. who names the American Eugene E. Lasting as his

representative to take over management.

1910s

The Beginning of a Brand Pt 2

• Mr. Manuel L. Barragan and Leonides Paez, who bring

experience in the field of advertising and accounting, joined the company. Foreign investors in the company offer to sell their shares to Mr. Barragan and Mr. Paez, without any guarantee but their work and moral character.

• New products are launched. Also, by this time the use of the

bottle cap started.

1920s

More Brands & Expansion

• The Company obtains the Coca-Cola soft

drink franchise and becomes the first company to bottle it in Mexico.

• Following the example of the local Brewery,

a truck fleet for soft drink distribution is

• created. Mr. Barragan and Paez watch as,

little by little, their dream of growing a modest bottling plant to a financially strong and job generating company becomes reality.

1940s

Modernization & Growth

• After Mr. Leonides Paez death, Manuel L. Barragan

assumes full responsibility for the Company. Then brings an era of modernization and growth.

• The machine pedal era ends, and the company

acquires modern bottling equipment.

• A bottling plant in the city of Matamoros,

Tamaulipas is inaugurated, and in 1947 one more in Nuevo Laredo, both still in operation today.

1950s

Modernization & Growth Pt 2

• Bebidas Mundiales SA is founded, a modern

plant created specially to bottle Coca-Cola

• nly. From that date on, the Topo Chico

Company would stop bottling Coca-Cola to engage entirely in Topo Chico Mineral Water, Joya with its different flavors and Topo Club Ginger Ale.

1930s

https://www.topochicousa.net/our-history/

Historical Perspective

1970s 1980s

Strengthening From Within The company undergoes a number of administrative changes to strengthen its market and optimize resources. The productive capacity of the company, allowed undertaking an ambitious plan for market expansion into the rest of the country. The Barragan Villarreal family decides to institutionalize their businesses and create a board of directors. PROCOR group was formed, and Topo Chico Company became an integral part of it.

1990s

Going Over Borders Export to the Rio Grande Valley and

• ther major American cities begin. New

products are launched: Topo Chico Toronja, Topo Chico Gota de Limón, Topo Chico Sangría and Frutier, a fruit drink.

2001

The Fusion of Big Business PROCOR merges with two bottling groups ARMA and ARGOS, creating a new company Embotelladora ARCA SA, the second largest Coca-Cola bottler group in Mexico.

2011

A Great Partnership Embotelladoras ARCA merged with Grupo Continental to integrate a new group of international bottling, Arca Continental, entering a new stage of growth. 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.

http://kut.org/post/topo-chico-bubbling-mainstream

David de la Garza Marketing Manager Topo Chico, USA

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 Yellow, Red, and Black Color Scheme Legendary Aztec Princess “It’s what we are” Logo with curvy typescape consistent on all packaging

Brand Identity

Look & Feel

The brand now has a hip, young look with a website full

• f 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

Grew up with the brand in Mexico or the U.S. Topo Chico is an everyday, all-occasion beverage Loyal following, but still more price-conscious

Mixologists

Seeks a versatile mixer for cocktails Bar-owners & DIY Use for craft cocktails Bar-owners buy bulk, others buy on

• ccasion

Urban Creatives

Trendy millennial Involved in the music/art/film scene Interested in products with a backstory Will spend a little extra on a premium product

Competitive Brands

Sparkling Mineral/Non-Mineral Water Category Perrier San Pellegrino La Croix Carbonated Beverage Category Sugary Soft Drinks

Mineral Water Club Soda Seltzer Water Tonic Water

Ad Campaigns

1990

1991 & 1994

2015

2018