BRAND AUDIT BY ANDREA SCHNARR
TABLE OF CONTENTS
FIRST SECTION
SECOND SECTION
THIRD SECTION
MOOD BOARD
MOOD BOARD
MOOD BOARD
HISTORY & BACKGROUND
THE MARKETING MIX
TARGET MARKET
INDUSTRY TREND ANALYSIS
COMPETITIVE ANALYSIS
TARGET MARKET CONTINUED
MISSION & CORE VALUES
MARKET POSITIONING
MARKET SEGMENTATION
VALUE PROPOSITION
SWOT ANALYSIS
CUSTOMER PROFILE
BRAND ESSENCE WHEEL
CUSTOMER PROFILE
BRAND PERSONALITY TREND WATCH PESTEL ANALYSIS
HISTORY & BACKGROUND La Croix - pronounced “La Croix, like Enjoy!”, started in the 1980’s. Fooled by the French sounding name, La ‘croy’ actually started in Wisconsin. Its name comes from a beer company in the 80’s from La Crosse, Wisconsin as well as the St. Croix River that runs along Wisconsin’s western border. In 1996 La Croix was bought by the National Beverage Corporation. The National Beverage Corporation is based out of Fort Lauderdale, Florida. The corporation originally started in Delaware in 1985, and in 1991 went public on the NASDAQ. La Croix is The National Beverage Corporations biggest product. La Croix is entirely produced in the United States. It is kosher, non-GMO, sugar free, and calorie free. La Croix has two simple ingredients: carbonated water, and natural flavors. The natural flavors come from natural essences and oils extracted from the fruits used in each of its 20 flavors. There are no added artificial ingredients or sugars. La Croix is sold at most stores, from your local grocer to big brand stores like Whole Foods.
INDUSTRY TREND ANALYSIS Within the food and beverage industry is the non-alcoholic beverage market. The non-alcoholic beverage market is estimated to be worth $202 Billion dollars by 2021. The most prominent vendors are sugary drink companies like Coca Cola and Pepsi. However within the past two years, because of the trend to be more health conscious and to limit sugar intake La Croix’s sales have doubled to $255 million according to Euromonitor. Sparkling water in the United States only makes up 3% percent of the non-alcoholic beverage industry, in comparison to Europe where it makes up nearly 33%. A trend found by Mintel, is that within the beverage industry there is growth in popularity with colorful drinks such as turmeric and matcha lattes - similarly this could be linked to La Croix’s success through their use of colorful cans of clear sparkling water. What’s different from La Croix is that it’s not the fancy sparkling water like Perrier or San Pellegrino that ‘snooty’ European’s drink at restaurants. Nearing the time La Croix started in 1988 it was found that the average American drank less than 4 gallons of sparkling water in a year - most people just drank tap. For years Coca Cola and Pepsi have been America’s cream of the crop in the beverage industry, now with a more
health conscious society consumers are gravitating toward the sparkling water craze. La Croix was ahead of this trend, crafting their sparkling water with natural flavors since the 80’s within the USA. A company that started with seven original flavors has now expanded to twenty. Unknowingly this ‘established’ sparkling water brand is the top pick for many when it comes to a refreshing zero calorie, zero sugar drink. To put the craze of La Croix in perspective, a share in La Croix’s stock in 2010 was worth $12 and today a share is worth $116.18. The 81-year-old CEO and founder of the National Beverage Corporation is now a late in life billionare due to the brand’s sudden surge in success.
MISSION & CORE VALUES The National Beverage Corporations prides themselves in being an American story. Made in America, they care about building community and creating a talent and commitment focused work culture. They prioritize their flavors, varieties and qualities of their creative products. The corporation strives to be “America’s Flavor Favorite”. They believe that they look into the future of the non-alcoholic beverage industry by constantly challenging their products to be produced with value and taste, without the extra sugars or calories. The National Beverage Corporation states that its biggest value is that they act with honesty and integrity - which means a lot for a beverage company that is competing in the sugar mass market that America has established.
LA CROIX VALUE PROPOSITION
FOR health motivated people, WHO are looking to hydrate and sastisfy their soda needs, OUR natural flavored sparkling water, THAT fulfills the need for a quenching drink with zero sugars. UNLIKE Spindrift we have 20 flavors. OUR OFFER is an USA made sparkling beverage for the everyday person at an everyday price!!
Price
THE MARKETING MIX
Place Consumers can find La Croix’s sold by the can or by the box in large format stores like Whole Foods, or basic corner variety stores. A way of identifying La Croix’s in store is often by the wall of La Croix cases that are colorfully and carefully stacked as a display. La Croix can also be found at restaurants and bars as a mix in for a cocktail or mocktail. Due to its convenient packaging you can enjoy La Croix wherever you want!
Sleek looking sparkling water for a reasonable price, made for everyday people looking for an alternative from soda. Prices are dependent on the amount of La Croix purchase, whether that’s by the can or case. Attracts different income people, as flavored sparkling water can be seen as a nonessential purchase.
Promotion La Croix is mainly marketed across social media platforms in particular Instagram. They attract a millennial demographic as well as young adults. Instagram is La Croix’s main and really only way of promoting their brand. La Croix can promote its products year round as well as focusing in on the summer months with possible sponsorships at outdoor events - for instance their pop up this year at the Governor’s Ball.
Product A Refreshing beverage for on the go without sugars, La Croix is a better option than traditional sodas. It satisfies the need for a refreshing bubbly beverage without sugar or calories. Made with simple carbonated water and natural fruit essential oils and extracts. Great for a drink at the beach or at a backyard barbecue. La Croix’s mainly comes in 12 oz cans, and comes in multiple colors according to its 20 different varieties of flavors. La Croix is differentiated by its retro painted looking cans.
COMPETITIVE ANALYSIS
NEW YORK SELTZER WATER
POLAND
Spring
POLAND SPRINGS
Poland Springs the brand has been around since 1844 and is owned by Nestle, a predominant brand in the market that could probably get its products anywhere it wants.
Too generic of a look and brand. Does not come off as a unique experience or as a treat.
HAL’s NEW YORK Unique to New York, Hal’s could catch a non-locals eye as it is niche to the area. Sustainably made 15 mi outside of the city.
Too traditional and stuck in the pass. Limited with odd flavours like vanilla cream, black cherry and a limited-edition coffee.
Spindrif
t
hint
HAL’s
HINT Hint is sold at the New School Cafeteria, however it is not sold at distinct locations.
Not the sleekest bottle. Does not have basic flavors like lemon and is sold at limited locations.
SPINDRIFT
Spindrift has real pulp from squeezed fruit (a con if you don’t like pulp!). Unsweetened, endorsed by Kristen Bell and has similar variety of flavors to La Croix.
Definitely one of La Croix’s closest competitors!
PERRIER Perrier has a long established history with an added dose of class. Sponsors major events like the French Tennis Open.
Too European? North Americans may be more attractive to USA made products that are more modern or part of a smaller production.
MARKET POSITIONING
Eclectic Flavors
Spindrift
HAL’s
hint
NEW YORK SELTZER WATER
Globally Accessible
Locally Accessible
POLAND
Spring
Traditional Flavors
SWOT ANALYSIS Strengths
Weaknesses
Opportunity
Threats
La Croix is a fully USA based company that provides flavored water with no artificial colors or flavors. LaCroix is a fairly well established beverage brand in the US and has branched out as well to Canada. In all of their 17 production plants around the US, the National Beverage Corp. emphasizes their commitment to protecting the environment by recycling as much as 70% of waste produced during production. La Croix mostly only comes in 12 FL OZ formats, not the most convenient for the consumer depending on the consumers desired use. Some people do not appreciate the clear yet flavorfulness of La Croix. They would rather have ‘real’ pulp than real essences. An internal weakness within The Nation Beverage Corporation is Currently facing a few law suits having to do with sexual assault coming from the CEO and against the product claims of La Croix. La Croix has the opportunity to broaden its accessibility and media presence by increasing the amount of participation in promotional events. A great example is LaCroix’s pop up station at the Governor’s Ball festival. La Croix could benefit from more exposure to the public - not just on social media but in print advertising. Other generic brand sparkling waters that are more accessible or cheaper for example like Trader Joes brand sparkling water sold at Trader Joes stores, or Poland Springs being sold at bodegas all across the city. A main competitor of La Croix would be Spindrift, new within the past ten years this American beverage company uses real pulp in their flavored sparkling water. Also the threat of litigation concerning the meaning of “all natural” claims
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BRAND ESSENCE WHEEL
Replace Bad Habits
Drink of Leisure Retro Modern
Facts & Symbols
Hydrate
Retro Paint Strokes
Color coded cans
C. 1996 Brand Proposition
GMO Free
Refresh
Varietal
Made in the USA
Satisfy
Sparkling Water
Acessible
“LA CROIX ryms with ENJOY!”
Delicious
National Beverage Corp.
Zero Sugar Hipster
# LIVE LA CROIX
Athletic
Made for anyone and any event Healthy
Flavorful
Artistic Gender Neutral Brand Personality
In the Know Responsible
Connected
Modern
Youthful
BRAND PERSONALITY
PEOPLE WE WANT TO SEE WITH LACROIX!
Chloe Kim (18) Youngest women to win an Olympic gold medal in snowboarding.
A good representative of the La Croix brand is anyone with an open mind. They are adaptable, modern, and consider themselves as someone who is ‘hip’. This person may be artistic, or athletic and enjoy a refreshing healthy La Croix while their out with friends, at the beach or just relaxing at home. Overall the La Croix brand does not just attract a certain demographic but is all about inclusivity.
Jared Leto (46) American actor and musician.
Gus Kenworthy (26) Olympic slopestyle skier, one of team USA’s most visible member of the LGBT+ athletes.
TREND WATCH: SPARKLING WATER Natural and ethical claims on global new food and drink product launches are on the rise.
17%
Natural Product Claims (ie. no additives/ preservatives, organic,GMO-free)
Ethical and Environmental Claims (ie. environmentally friendly packaging, animal/human welfare)
29%
1% 22% SEPT. 2006-AUG. 2007
PESTEL ANALYSIS Currently the BPA guidelines for aluminum cans are under review by the FDA. With BPA health concerns consumers may avoid caned beverages and go for a competitors’ product that is packaged differently
Political
Since the establishment of NAFTA trade amongst the USA, Canada and Mexico has tripled, however once revised it is hard to predict the outcome and obstacles corporations will face while trading and selling their community in Canada and Mexico.
Legal
Environmental
With more establishments banning the use of plastic straws consumers may be affected in what drinking products they choose to purchase, or manufacturers will have to improve the sustainability of one-time use drinking ware.
Social-Cultural
In pop culture, society praises basic logos for their iconography and unique look. Much like Andy Warhol’s muse of Campbell’s soup can, people like brands for their identity and their aesthetic. Looks matter!
In the USA, sparkling water makes up 3% of the beverage industry in comparison to Europe where it makes up 33% of the industry. With the decrease in soda sales in the USA we can expect sparkling water companies to play a more dominant role in the beverage industry.
Technological
With the rise of social media we can see an increase in product placements in videos and films as well as more celebrity endorsements through platforms like Instagram, YouTube and Facebook.
Economical
TARGET MARKET Target audience would be a bridge between Generation X and Millennials roughly together a group of a couple hundred million people. Their characteristics are that they care about their self-image and how they are perceived, they also value individuality. These individuals may have personal traits such as their occupation that may influence their decision to by La Croix. More on the go people with less time to sit down and eat may take La Croix to go or pick it up at a food vendor. Their psychological motivation towards buying La Croix, would be thirst and a hankering for a flavorful beverage that is more so a healthier alternative to soda and conveniently packaged for on the go. This segment of the market is mainly students, and young professionals based in metropolitan areas. The buyer of La Croix can be of any race or ethnicity. This audience cares about their quality of life, they are invested in sustainability and are health conscious. The decision-making unit would mostly be comprised of the target audience who actively shop at their local super market like Whole Foods for themselves. An individual sale of a can of La Croix is great but ultimately the consumer should be buying by the case, as a repetitive purchase. This leads into the decision for the consumer to buy La Croix as individuals or as a unit. This is dependent on how much they enjoy the drink, how much space they have to store the cases and if they are more incline to share the drink with others for special occasions. The user of La Croix can be anyone from kids hanging out at the beach to someone who likes to entertain responsibly at home.
GEOGRAPHICAL - Metropolitan Centers
- Urabn Areas - Sold at Whole Foods - North American (USA & CANADA)
BEHAVIORAL
- Healthy Habits - Non Soda Drinker - Throws ‘Get togethers’ - Dinner Parties - Picnics - Aftor work beverage, like a reward!
DEMOGRAPHIC
PHYCOLOGICAL
- Millenials and Gen X. - Young - People with Jobs - College Students - Middle to Upper Class
- Health Conscious - Special Occasion Drink - Wants to Replace Old Habits with New Ones - Repetitive Shopper
MARKET SEGMENTATION Segmenting the market towards generation X and millennials would be beneficial to the marketing of La Croix as it attracts mature former soda drinkers who care about their health. Demographically, La Croix can be enjoyed by whomever but it has specific ties in production to the USA, also sparkling water is often most popular with those with an European background. Those who buy La Croix are buying it for its health benefits and for special occasions. These consumers live close to a metropolitan area where they have ample opportunities to purchase La Croix. Idealy buyers should be in the mindset to repeatedly be re-buy La Croix. For example picking up a pack after work or school on a Friday before the weekend and its festivities ahead.
Generation X Generation X’s have more savings to spend on a ‘luxury’ of sparkling water. They don’t eat out as much or are overly active. They may not be capable of carrying cases of water for multiple blocks. . Strategy: Make La Croix more accessible through delivery services like prime, possible team up with Amazon. Not only team up but offer Prime members incentives and coupons with their purchase of La Croix through Amazon and not at they’re local market. We can also promote home-made cocktails and mocktail by printing recipes on the case. This promotes buying La Croix for family occasions as La Croix is a drink the whole family can enjoy! KEY WORDS : Ease, Convenience, Membership Perks
Millennials Millennials are always on the go. In the prime of their youth, they’re independent and are constantly getting together with friends. They maybe don’t have the same budget like Generation X’s have when it comes to choosing what to purchase at a grocery store but still want to be healthy and enjoy a flavorful beverage Strategy: To pump social media with weekly contest and give-aways, encouraging the use of a hashtag and tag to share with friends the La Croix brand. Can also advertise with pop up ads on Instagram to come across millennials’ screens. La Croix can also sponsor influencers and be more present at music festivals! KEY WORDS : Influencers, Social Media, Advertising
RECOMMENDATIONS First, I think there should be more channels of advertisement that La Croix is spreading their image through- not just their own Instagram account. My second recommendation also has to do with putting the brand out there, is giving the product more public exposure. That may be handing out free cans during special events around the city or having a La Croix booth at music festivals or sporting events (for example this year at the US Tennis Open there was a Grey Goose Box for influencers). I also think the brand should venture into the alcoholic beverage industry, weather that’s teaming up with another American alcohol company (for example Titos) or producing their own line of vodka sodas. If La Croix were to venture into this new market they would have to adjust their values and target market. Even with La Croix venturing into the alcoholic beverage industry it still can claim being a healthier alternative, with the use of minimal to no sugars.
CONTROVERSY From asking around I have found out during the creation of this Audit that people either love or completely hate La Croix. Just this week a lawsuit was filed against La Croix due to its product not being 100% natural- as they claim. By a privately done test they have found chemicals that are not FDA approved and are synthetics that are often found in cockroach insecticide. In addition, there is another lawsuit filed against Nick Capporella, the CEO of the National Beverage Corporation. Two plane pilots accused the CEO of displaying sexually suggested movements and unwanted touching. I believe that because of these finding I personally maybe less tempted to purchase La Croix in the future despite being a strong fan.