Client Profile- Hydro Flask
Chosen Product/Service
Hydro-Flask water bottle with Bose built-in bluetooth speakers.
Company History
Hydro Flask is a insulated steel bottle company founded in 2009 by Travis Rosbach and Cindy Morse. Sales jumped from $2 million in 2011, to $35.6 million today.
Mission Statement
“We’re not just along for the ride. We’re along to help you enjoy the things you love and make the ride awesome”
Original Hydro Flask Mission Statement
“Join us on our mission to save the world from lukewarm.”
Marketing Objectives:
“Why not both?” commercial. Why carry around a speaker and a hydro when you can have both in one?
Better sound is just the beginning. We’re passionate engineers, developers, researchers, retailers, marketers … and dreamers. One goal unites us—to create products and experiences our customers simply can’t get anywhere else. If you want to hear more, we invite you to explore.
SWOT Analysis:
Strengths
Two high quality, market controlling companies come together that combine to create a product that anyone can use.
Hydro Flask has a strong market presence.
Consumers love carrying the brand name of Hydro Flask.
Weaknesses
High quality products mean higher price in a market that is known for products that can be bought seperately at any price range.
Opportunities
Controlling 2 markets that are used world-wide
Make change the way people store their water and listen to music
Threats
Other water bottle companies that are able to keep their prices low and offer the same thing we do, without a speaker.
Major Competitors
IcewaterⓇ
Icewater is not a major competitor because they only sell on Amazon and do not have an established brand name like Hydro Flask or Bose.
Market Growth Strategies
Product Development
Hydro Flask has partnered with Bose to satisfy more than just the customers’ hydrating needs. We developed a new product to allow you to carry your music with you. Bluetooth connect your phone to your built-in speakers on your water bottle.
Client Profile- Bose
Chosen Product/Service
Hydro-Flask water bottle with Bose built-in bluetooth speakers.
Company History
Bose was founded in 1964 by Amar Bose.
Mission Statement
“We’re not just along for the ride. We’re along to help you enjoy the things you love and make the ride awesome”
Bose original Mission statement
“Think of better solutions, create better products, help people enjoy the things they love.”
SWOT Analysis:
Strengths
More exposure comes with partnering with the hydro flask brand
easy to market
high quality
Weaknesses
High quality products mean higher price in a market that is known for products that can be bought seperately at any price range.
Opportunities
Bose will be the leading company to partner with another rising brand.
Threats
Bow profit margins because Bose is an expensive brand but we want to keep the prices as low as possible so the product can’t be sold at a high price.
Major Competitors:
IcewaterⓇ
Not a major competitor because they only sell on Amazon and do not have an established brand name like Hydro Flask and Bose.
Marketing Objectives:
“Why not both?” commercial. Why carry around a speaker and a hydro when you can have both in one?
Better sound is just the beginning. We’re passionate engineers, developers, researchers, retailers, marketers … and dreamers. One goal unites us—to create products and experiences our customers simply can’t get anywhere else. If you want to hear more, we invite you to explore.
Market Growth Strategies
Product Development
Hydro Flask has partnered with Bose to satisfy more than just the customers’ hydrating needs. We developed a new product to allow you to carry your music with you. Bluetooth connect your phone to your built-in speakers on your water bottle.
Market segmentation
Target Customer Profile
Target market: Outdoor enthusiasts/Athletes:
Ideal customer: John and Jane are a health conscious college aged couple who enjoy adventures and sports. They live on campus but they regularly visit the surrounding parks. John is a competitive athlete who is always trying to hone his basketball skills. In addition to his usual team practice, John likes to shoot around alone or play a small pick up game with friends. Jane enjoys hiking the beautiful trails surrounding her college campus to stay in shape and relieve stress by admiring nature’s views. The couple likes to keep up with the newest and trendiest gadgets that come out. As college students, they have a budget, however, they don’t mind spending a little more on high quality products. Their busy schedule has them always on the go from their dorms, to class, to practice, to social events, and other activities. Like many people their age, they like listening to music regularly. They like convenient and compact products so they don’t take too much space in their bags and can be easily carried around.
Positioning statement: To the outdoor enthusiasts who are always exploring their surroundings and the athletes who are pushing themselves to the limit, Flo is the instrument to help them reach their fullest potential by combining a Hydro Flask bottle and a Bose speaker in a high quality, compact product that provides movers with a double insulated water bottle and a bluetooth connected speaker.
Product Strategy
Product Description
A Bose speaker attached the bottom of the Hydroflask. The Bose “SoundLink Revolve Bluetooth® speaker” will be adjusted into a cylinder shape to attach onto each size of the standard mouth insulated water bottle.
Core Benefit
The core benefit for the customer is having the convenience of a speaker and a water bottle in one.
Actual Product
Flo will look similar to the images above. The silicon boot (pictured right) will be replace by the Bose speaker (pictured left) which will be detachable via screwing the bottom off.
Quality level
The quality level of Flo is very high. Hydro Flask and Bose create high quality products that are often also priced accordingly high.
List of features
Double insulated walls
Exchangeable lids
Built in bluetooth Bose speaker
Bose speaker produces high volume for its small size.
Round shape of speaker allows sounds to be delivers uniformly all around.
Design
Sleek
Durable
Color selection
Built in Bose Speaker
Brand name/Branding
Very well known brand co-branding between Hydro Flask and Bose, this new product will be called Flo. The name Flo was chosen because water flows (Ex. rivers) and music can have a good beat or flow to it.
Packaging & Labeling
We will keep the original Hydro Flask labelling and design. Putting the product name Flo in bold and adding the Hydro Flask and Bose name under it.
Augmented Product
Free delivery within the United States
Free customer service support
Online
In Store
Finance Options
Guarantees
5 year manufacturer guarantee
Service
24/7 online customer support for Bose and Hydroflask
Product Classification
Shopping: Flo is a Shopping Good under product classification because of its high quality and price. The high price reflect the quality of Hydro Flask and Bose. Flo is a heterogeneous product due to the fact that is is difficult to find a replacement for it in the market. Advertising will be relied upon heavily in order to influence customers.
Product Life Cycle
Introduction: Hydro Flask is introducing a new product into the market “Flo”.
Flo is in the development section. Hence, it is considered a question mark. Although this is a new product created through collaboration between two well known brands, both companies individually are in their maturity stages. Sales peak during the growth stage and then the maturity slows down.
Pricing Strategy
Pricing Objectives
Product Quality:
Flo fits in this pricing objective because our goal is to create a high quality flask. The higher than average price is due the value and uniqueness of our product, Flo. Both Hydro Flask and Bose are market leaders hence their collaboration is special.
Pricing Approach
Value based
Flo’s price is an added value based product. Flo is both a stainless steel bottle and a speaker. The efficiency of having a 2 in 1 product creates higher value than regular.
Price List
18 oz wide mouth
32 oz wide mouth
40 oz wide mouth
64 oz wide mouth
Product cost per unit
$70
$80
$85
$90
Markup price to Retail
$140
$160
$170
$180
Suggested retail pricing
$180
$200
$230
$250
Cost markup
100%
100%
100%
100%
Pricing Strategy
Premium: Flo offers a high quality product that will be matched with a high price
Pricing Adjustments
Discounts
Around Christmas time, a 10% seasonal discount can be applied when two flasks are bought “Buy one for you and one for a special one”
Temporarily reducing prices to increase short-run sales.
Reduced prices during: summer seasons, hiking seasons, hunting seasons
Psychological →
Pricing based on value of product. “Higher the price higher the value” Mindset.
Geographical →
Base point pricing
Dynamic & Internet→
Dynamic pricing will take place on sites such as eBay and Amazon
International →
Flo’s price will increase for international purchases to make up for additional cost of operations, shipping and taxes.
Distribution Strategy
Market Exposure
Selective: Flo will be sold in a selective number of outlets. The limited number of outlets where it will be sold are specifically chosen due to their geographical location that is within the preferred market.
Marketing Channel Level
Indirect → Vertical → Contractual
Flo will use an indirect, vertical, contractual marketing channel level because it goes from manufacturer to wholesalers who then distribute it to retailers. Finally, the retailer reaches the customer.
Channel Members
Wholesalers
Full service: Flo provides all the services that a Full service wholesaler does
Store Retailers
Specialty: REI, Dicks, Big 5, Bass Pro Shops, Bose, Tillys, Pacsun
Supermarket: Trader Joe’s, Wholefoods, Ralphs
Department: Nordstrom, Macy’s, Bloomingdale’s
Departments stores such as the one’s listed above will be a useful channel for purchasing Flo as a gift for family members.
Digital: Amazon.com, Bose.com, Hydroflask.com
Logistics
Shipping: The Bose speaker will be shipped from Asia to Oregon where Hydro Flask manufacturing takes places.
From there the completed product will distributed to the retailers through trucks and railroads.
Promotion Strategy
Communication Objectives
Preference: Flo would be a product that is preferred by our target audience. Hydro Flask is already an established brand with a strong customer base that favored over other brands in the same industry. This water bottle/speaker combination in our product is a huge differentiator to other products that lack such features.
Designing a Message
Message Content
There is a brand new product that combines two very well known companies that create a very high end and desirable product.
Rational appeal – two products in one, the smarter more rational purchase. Convenient.
Emotional appeal
Moral appeal- In addition, Hydro Flask gives back to nature and humanity. They support the foundation Park for All
Promotion Tools
Advertising**
Ex: “Why not both?” commercial. Why carry around a speaker and a hydro when you can have both in one?
Sales promotion
Advertising Media
Billboard
Declaration of Authenticity
We declare that this project has been thoroughly reviewed, and that it is our original work except where source material has been acknowledged. We understand that plagiarism is defined as:
A deliberate act of using someone else’s ideas, words, or other original material without acknowledging its source. This applies to all material whether it is published or online and includes the work of other student writers.
We acknowledge that we have read the CUI Handbook on plagiarism (https://www.cui.edu/Portals/0/…/StudentLife/student_handbook.pdf). We understand that any act of plagiarism will be addressed according to the CUI Handbook, and may result in up to a failing grade for this course. We also acknowledge that all members of this group will be held responsible, regardless of whether our individual contributions resulted directly or indirectly to the plagiarized material.
In order for this project to be graded, each member must sign and date this declaration by the project due date. Submit with your project (either in paper or .pdf on Blackboard)
Course: ________Marketing 341______________ Term: __Fall 2018______
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Signature Date
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References
Tcobli. (2018, November 17). SoundLink Revolve Bluetooth ® speaker. Retrieved from https://www.bose.com/en_us/products/speakers/portable_speakers/soundlink-revolve-bundle.html#v=soundlink_revolve_pkg_sl_revolve_triple_black
18 oz Standard Mouth. (n.d.). Retrieved from https://www.hydroflask.com/18-oz-standard-mouth-flex/color,flamingo,a,92,o,68
We are Hydro Flask. (n.d.). Retrieved from https://www.hydroflask.com/explore/our-story
Innovations/achievements. (n.d.). Retrieved from https://www.bose.com/en_us/about_bose/innovations_achievements.html
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