Vitaminwater : Market Segmentation And Expansion Strategy

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Glacéau Vitaminwater – Market Segmentation and Expansion Strategy From its humble beginnings as a ‘mom-and-pop’ beverage manufacturing company to its current business as a strong subsidiary of its parent corporation, the Coca-Cola Company, Glacéau has consistently maintained its position as a leading brand within the enhanced bottled water and soft drink markets.1 Coinciding with Glacéau’s decision to expand its product distribution to the entire United States in 2000, the company released a new line of refreshing beverages now known internationally as Vitaminwater.2 Since its inception, Vitaminwater has impressively become much of its own brand, now offering nearly twenty flavors that are available via commercial bottles, fountain drink stations, and Coca-Cola Freestyle machines.3 In addition to its wide variety of consumption options, Vitaminwater also has zero-calorie variations that tailor to the company’s more health-conscious consumers. The mere existence of a no-calorie alternative provides valuable insight into Glacéau’s willingness and ability to hone in on, explore, and target specific market segments that are relevant to its product line. The soft drink industry, now an extremely mature market, is experiencing major growth as companies are receiving large amounts of revenue as a result of a general rise in consumers’ disposable income levels.4 This growth comes as a relief to many businesses like Glacéau because of the risk of stagnancy and economic decline in

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