Marketing Analysis thankyou Water PDF

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Marketing Analysis - thankyou.WATER Introduction "Bottled water is kind of a dumb product …” 1 observes Daniel Flynn, co-founder of Thankyou – a unique social enterprise that aims to ameliorate human wellbeing – chiefly focusing on safe water, hygiene, sanitation programs, and food security programs - across the globe by utilizing 100% of the profits earned on the sale of its products. Daniel was struck with the contrasting inequality wherein consumers in developed nations were buying drinking water at significant prices while a larger section of the human population suffered from the dearth of safe and clean water facing water crisis – a prime human necessity. Daniel Flynn, Justine Flynn and Jarryd Burns envisioned Thankyou in 2008 with the prime goal of providing a robust product while enabling consumers to have a “chance to change the world” for better. 100% of the profits from the sale of Thankyou water are invested to fund projects in developing economies.

Impact partners in the respective countries work with local communities to deploy solutions like water wells, rainwater harvesting interventions, gravity-fed water systems enabling access to potable water. According to data from company’s website – more than 556,300 people worldwide have benefitted so far from these impact initiatives funded by Thankyou.

Thankyou has emerged as a trailblazer in the Australian continent by embracing classic principles of Sustainable Marketing 2 and radical strategies for consumer connect for product promotion. Socially and environmentally responsible marketing that meets the present needs of consumers and businesses while also preserving or enhancing the ability of future generations to meet their needs.

References – 1 – Small Business Secrets, Australia 2 – Sustainability Marketing: An Innovative Conception of Marketing, Belze/Peattie

Target Market The core offering of Thankyou is a resolve to better the world with a world class product. It appeals to the and the sense of humanitarianism in consumers. Daniel Flynn was named Victorian Young Achiever of the Year in 2013, Victorian Young Australian of the Year in 2014 and has recently become a recipient in the 2014 Junior Chamber International 10 Young Outstanding People of The World program. Created by young entrepreneurs with a revolutionary and refreshing unique selling proposition of enabling Global Change the product targets the young and the “young at heart” capable of empathy. As declared in the vision statement – the company aims to empower the everyday Australian to bring about a positive change in the world. After successful run in Australia – Thankyou has expanded to New Zealand in June 2018.Thankyou also organizes water walks where it works with school children to drive home the importance of water sustainability.

Positioning Brand positioning has been defined by Phillip Kotler as “the act of designing the company’s offering and image to occupy a distinctive place in the mind of the target market”. Thankyou water has created a distinct place in the crowded market place of bottled water offerings in the Australian continent 3.

Reference: 3- Marketing By Philip Kotler, Suzan Burton, Kenneth Deans, Linen Brown, Gary Armstrong

thankyou ‘s 100% Business Model

The simple fact that unlike any other businesses – 100% of the profits generated from sales fund development projects globally is the source of key differentiation for thankyou water. In 2017, Thankyou Group commemorated United Nations World Water Day on March 22nd to honor the 545,360 people who have access to safe water and sanitation. The group’s website also has a prominent counter with key statistics regarding the project beneficiaries.

Information Banner at thankyou Website [https://thankyou.co/water ]

– While it is not uncommon for business brands to contribute to developmental or social aid programs, Thankyou has taken the idea a notch higher. Consumers can actually validate where and how the proceeds from their purchase are being used for development activities. Every thankyou product carries a unique tracker ID – when referenced on the impact tracker on the website – it brings up complete information and status of the projects that were funded by the purchase. This is a great strategy to lock in consumer trust. Every time the tracker details the project it provides strong, material, visual reiteration of the “change” that thankyou is committed to bring about with the consumer’s support. This forges a relationship of trust and respect for the brand.

“What if purchasing everyday items like bottled water, food and body care products could provide life-changing solutions for the millions of people who live in poverty?” … thankyou [ Source - https://thankyou.co/projects ]

The success of thankyou water and the larger brand is also largely driven by the innovative, radical, out-of-the box and passionate customer engagement practiced by the group. Most of the communication happens involving Daniel and Justine speaking directly to customers/advocates urging them to champion their cause of bringing about poverty alleviation and better standard of living for fellow human beings. All the co-founders of thankyou group have emerged as strong individual brands and they have helped to broadcast the 100% Model of Thankyou far and wide. So, consumers can easily connect to living testimonies of the philosophy driving the thankyou brand. A key strategy to spread the thankyou philosophy involved the launch of the book Chapter One – a narrative of all the behind the scenes emotions, effort and drama involving the success of the thankyou movement. The stamp of radical marketing thinking is not missed here as well. Chapter One is in the market on Pay-What-You-Want pricing model. So, those interested in the cause of thankyou can get a copy of the book by committing any amount that they are comfortable with – there is no minimum retail price. Now, this is a great idea as it enables a large number of people to know more about the thankyou movement while adding up financial muscle through the book sales to fund thankyou growth.

Product Thankyou water is the flagship product from the group. As the initiative grew strong the group added other elements to its product portfolio - Food, Personal Care, Baby Care and Nappies. Thankyou water prides its origins from the purest of Australian springs. It offers high quality water which has a natural balance of minerals. Thankyou water is crafted by indigenous manufacturer in Australia with a rich experience of 20 years in the beverage industry. It is offered in three volume points which adds to consumer convenience – 1.5 Liter, 600 Milliliters and 350 Milliliters. A unique feature of the thankyou product is the impact tracker id. Every thankyou water bottle has a tracker identity number. This number can be used by the customer to understand how the purchase dollars are being actually used by thankyou for the development activities.

Price According to Industry reports, the Australian Bottled Water sector has witnessed strong and increasing price competition has reduced prices despite rising sales volumes. There is also

mounting concern about the impact on the natural ecosystem due to bottled water. Thankyou is also facing pricing competition from private labels in the supermarkets. Thankyou water is priced $2.10 for the 1.5 Ml pack. The success story of the thankyou movement has been chronicled in the book Chapter One which is available for the customer at no minimum retail price. Interestingly, the book is being offered in the Pay What You Want pricing model. According to company website - 124,719 books have been sold generating a profit of $ 2,517,993.24.

Place Thankyou Water is available through both online and traditional brick and mortar stores. In the retail format – it is available at prominent stores like 7-Eleven, Woolworths, Officeworks and IGA. Its list of wholesale stockists are currently numbered at 11 and include names likes – Lyreco, Winc, Complete Office Supplies, Socrates, Drink Scene, Quality Food Services. From being a little known brand to being stocked at more than 3000 retail outlets and 400 independent cafes and outlets is indeed a matter of great achievement for thankyou. The group has ensured that it has placed its products in vantage points for consumer reach.

Promotion The promotion and brand communication strategy for thankyou water has created ripples across the marketing world. Its campaigns engage the customers, advocates and target audience across the most recent media platforms while coming up with innovative strategies to spread the message. The brand is present on all the major social media platforms, including Facebook, Twitter, YouTube and Instagram. This allows the group to directly engage with its customers and target market group. Thankyou has distinguished itself in building momentum for its message while engaging its target audience in a compelling manner. A key feature of the communication strategy is the direct messaging – where the Brand Owners – Daniel and Justine relay their thoughts in YouTube videos directly to the target audience. Campaign 7-Eleven: In 2013 as Thankyou was discussing with 7-Eleven on its distribution plans. As a new entrant in a saturated market, Thankyou required a strategy that will help to power itself in consideration set for the retailer. Even as Thankyou was scheduled to meet the retailer, it urged customers to post 7-Eleven’s Facebook page advocating the fact that they would purchase the product if it is made available. This nifty Facebook campaign was a major success and it ensured an acknowledgment from 7-Eleven.

Coles/Woolworths Thankyou Campaign: Yet another innovative strategy where Thankyou pushed the envelope further in terms of radical thinking when it was trying to convince the two major retailers to stock its products. In addition to the social media campaign where it is estimated that over 13 million people were reached over a period of two weeks employing multiple channels like social media, online traffic and conventional media. It also roped in celebrity endorsements from renowned Australian media personalities like Chrissie Swan and Jules Lund. The high point of the campaign was helicopter fly-over the corporate headquarters of Coles and Woolworths with a message exhorting the retailers to support Thankyou in its mission to change the world for better. Virgin Australia Thankyou Campaign: Thankyou leveraged social media to good effect when it mobilized its customer group to advocate about Thankyou range onboard on Virgin Australia’s complimentary menu. With the initial response leading to 800 posts, Daniel reached out to Richard Branson for support. This was followed up with a mobile billboard outside Virgin Australia’s headquarters and the same being displayed on Facebook by Virgin. In addition to the above campaigns – thankyou also posts messaging and communication from Daniel (and sometimes Justine) with key communication regarding the Thankyou group and the challenges and opportunities. Devoid of jargon – these video messages are plain speak that aims to connect directly with the customers urging them for purchase/advocate action for the group.

Recommendations for improvement Thankyou has completed ten years of trailblazing action in the field of sustainability marketing. However, as it marches ahead it should brace for challenges and come up with marketing interventions to bolster place in the marketplace. Product Enhancement: According to Industry reports the customers in the bottled water industry are becoming more health conscious. Global trends indicate shifting preferences towards flavored water and fortified water variants. In order to stay relevant to the market – thankyou must invest in product portfolio enhancement. Pricing Challenges: With the competitive pricing from private labels posing a major threat – there is a need for thankyou to be more radical and innovative on the pricing front. Avoid Brand Communication Fatigue: With a decade of successful social enterprise underway – thankyou now needs to guard against brand communication fatigue and ensure that it does not lose out on its differentiation proposition. Manage Geographic Expansions: As the group moves ahead in New Zealand it will be interesting to watch how the product and communication strategy works for thankyou....