Assignment: White Rock

White Rock Uses Marketing Strategies to Revitalize Company

Larry Bodkin had a tough road ahead of him when he became president of White Rock Beverages. Founded in the late 1800s, White Rock’s sparkling water reached its heyday in the early 20th century as the water of the upper class. However, by the end of the century, White Rock was struggling to survive. Growth had stagnated, and new strategies were needed to keep the White Rock brand alive.

White Rock used a combination of different marketing strategies to revitalize the company. For years it utilized a hybrid distribution system to sell directly to distributors in some markets and to retailers in other markets. In the process, White Rock uses customer service as a differentiator between its beverages and its competitors. White Rock customers feel like the company is responsive to their needs, with many becoming loyal to the White Rock brand.

Another way in which White Rock differentiates itself from companies like Coca-Cola and Pepsi is by its branding strategy. The company recognizes that one of its key strengths is as a premium brand for a niche market segment. White Rock targets the health-food segment by marketing itself as a unique, healthy brand. It also capitalizes on its history as one of the oldest sparkling beverage companies in America. This brand appeal has become so important that White Rock challenged Coca-Cola after Coke claimed that it created today’s modern image of Santa Claus. Bodkin demanded an apology from Coca-Cola when it was revealed that White Rock had been using the modern Santa Claus ad two decades prior to Coca-Cola’s Santa ads. By developing a strong, authentic brand image, White Rock is attempting to re-assert its brand into the minds of consumers.

White Rock’s efforts have been successful in stimulating growth. The company grew 10 percent in 2009. However, since White Rock recognizes that its brand has matured (meaning that growth will likely be minimal), the company is adapting its strategy by introducing White Rock in new containers and sizes. For instance, it developed the White Rock Punch ‘n’ Fruity juice boxes, which are meant to appeal to on-the-go consumers and parents. Additionally, White Rock is breaking into the organic industry with its line of White Rock organics, made with cane sugar and natural fruit extracts.

White Rock is also pursuing an acquisition strategy of other brands. In addition to the White Rock brand, the company owns the Sioux City and Olde Brooklyn brands. Both brand names appeal to a bygone era. White Rock credits its nationally distributed Sioux City brand as one of the first brand of soft drinks to carry a Western theme. Olde Brooklyn’s flavors are named after Brooklyn neighborhoods that imbue the brand with a sense of authenticity. Olde Brooklyn also lacks preservatives, which appeal more to the health food market. By using brands such as Olde Brooklyn to gain entry into health-food stores like Trader Joe’s, White Rock hopes to expand its market of distribution and secure more growth for the company.

Sources: “Sioux City,” White Rock, www.whiterockbeverages.com/SiouxCity.cfm (accessed April 24, 2010), “Drink Boxes,”White Rock, www.whiterockbeverages.com/DrinkBoxes.cfm (accessed April 24, 2010); “White Rock Timeline,” White Rock, www.whiterockbeverages.com/Timeline.cfm (accessed April 24, 2010); “CREATIVE Beverage Merchandising,” Creative Beverage, April/May 2005, www.creativemag.com/cbev505.html(accessed April 24, 2010); PR Newswire, “Coca-Cola’s Santa Claus: Not the Real Thing!,” PR News Online, December 15, 2006, www.prnewsonline.com/prnewswire/407.html (accessed April 24, 2010).

This assignment will assess the following competencies: 4. Demonstrate the ability to exhibit sound marketing decision-making, and 5. Appraise the effectiveness of various marketing strategies.

After readingWhite Rock Uses Marketing Strategies to Revitalize Company, and based on your readings from our textbook, write a 300-400 word essay in which you address the following questions:

• In your introduction describe White Rock: when it started, who started it, where it is located, what do they do, etc…
• What does a SWOT analysis reveal about White Rock?
• How has White Rock used market segmentation, targeting, and positioning in developing and executing a plan to ensure the survival and success of the company?
• How has White Rock used the four Ps of marketing ¾ product, price, place, and promotion ¾ to develop and execute a plan for ensuring the survival and success of the company?
• What beneficial options would you suggest for this company?

The paper must be researched using at least two scholarly or professional marketing resources, as well as the textbook.  The references must be cited and properly placed on the reference page using APA formatting.