Blind + Bubbly Research

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Blind + Bubbly A S p a r k l i n g Wa t e r Ta s t e Te s t

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T h e D rea m Tea m

Anila Alam

To r i B r u n n e r

Thomas McMullen

Abigail Snyder

May Fong

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INDUSTRY H e a l t h y L i f e s t y l e Ta k e o v e r -Fits into almost every diet plan -210% increase in sparkling water sales

Customization and Choice -Digital natives are used to this -Package design and coloring

Profitability -$152 million venture capital investment in 2018 -Soda company expansion into this market

https://www.nytimes.com/2019/07/13/style/seltzer-sparkling-water-bubble.html https://qz.com/1364156/the-only-people-more-obsessed-with-sparkling-water-than-millennials-are-venture-capitalists/

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B A C KG R O U N D L a c k o f P a c k a g i n g Aw a r e n e s s -One generic, three private-label brands

Carbonation and Flavor -Lemon seltzer water

Price and Quality -Perceptions vs actual

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BRANDS Kroger Brand -Store brand trust and perception -Priced at $.019 per ounce

La Croix -Market leader at 18% -Priced at $.038 per ounce

Spindrift -New entrant at 1.2% of the market -Priced at $.062 per ounce

San Pellegrino - N e s t l e h a s 11 . 3 % o f t h e m a r k e t -Priced at $.068 per ounce

https://www.wsj.com/articles/coca-cola-takes-on-lacroix-with-caffeinated-seltzer-11573135321

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H YP O T H E S I S

If the price of the sparkling water brand is H I G H E R then it will rank highest in lemon taste, carbonation, a n d o v e r a l l q u a l i t y.

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S E TU P

Build a Qualtrics Survey -Allows for exporting of data into Excel -Format is user friendly

Print out a QR Code -Easily accessible from mobile device -Ensure completion of survey in our presence

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PROCEDURE B u i l d E x p e r i m e n t i n Ta t e -Arrange cups and drinks -Recruit participants

Ask Preliminary Questions -Sparkling water likability -Demographic classification

B e g i n B l i n d Ta s t e Te s t -Lead participant to each of 4 waters - R a n k l e m o n f l a v o r, c a r b o n a t i o n , o v e r a l l t a s t e

Debrief and Reset -Ask post-experimental questions -Randomize the new order of drink options

Wa l k U p a n d S c a n

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RESPONDENTS

Gender Demographics

Male

Fans of Bubbly

Yes

Female

No

Favored Drink

Kroger LaCroix

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11 21

17

Spindrift San Pellegrino

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29

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OUR PORTFOLIO S H OWCA S E Kroger

Spindrift

LaCroix

San Pellegrino

L e m o n Ta s t e Kroger and Spindrift tie

Lemon Taste

Carbonation -LaCroix is the clear leader

Overall Quality

Carbonation

-Kroger and LaCroix tie

Overall Quality

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2

3

5

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L I M I TAT I O N S

Location, Location, Location - C o n v e n i e n c e s a m p l i n g i n Ta t e -Relaxed environment leads to group sentiment

Ingredients -Optional palette cleanser not utilized -Spindrift contains real fruit juice

W h a t We n t Wro n g

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CO N C LU S I O N

Reject the Null Hypothesis -San Pellegrino did not rank highest in preference -Kroger and Spindrift tied, and are not market leaders

Marketing Implications -Brand perception is built though packaging -Sparkling water can be considered a luxury -Brand loyalty is built through advertising

Ta k e w a y s -Many participants were surprised by the brand they preferred - E v e n i f p a r t i c i p a n t s d i d n ’ t r e g u l a r l y d r i n k s p a r k l i n g w a t e r, t h e y h a d definite preferences

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Q U E S T I O N S?

T H A N K YO U