Analysis of Sobe Lifewater

Analysis of Sobe Lifewater

Bus508

February 28th, 2009

For this discussion I am going to choose SoBe Lifewater, which is a vitamin enhanced water beverage currently sold in the United States. As I began my research, I discovered that SoBe is owned by PepsiCo, but the brand seems to operate independently as there is no reference to the parent company in their advertising or on the product itself.

There are a number of marketing environment forces that have an affect on the sales of beverages in the United States. Probably the biggest force right now is societal concerns. CNN reported that 10% of the calories in the average American’s diet come from soft drinks and numerous studies have tied this “liquid candy” to the obesity epidemic in America (Hellerman 2007). In the past few years, people have become more aware of the importance of healthier eating habits that include drinking more water and less soda.

Most people don’t find it easy to trade in their sodas for plain water, so flavored waters are a compromise between the two. When you add vitamins and minerals to the formula, you come up with a beverage that presents itself as a healthier alternative to carbonated sodas, and this feeds into the public’s concerns about eating better. This is how SoBe needs to market itself in the US; as a delicious beverage that is also good for you.

Another concern is political, legal, and regulatory forces. The federal government has stepped in to address the public’s concerns about the unhealthiness of carbonated soft drinks, especially for children and teens. In most school systems, soft drinks are no longer sold in vending machines, nor are they offered as part of the school lunch program (Soda Sales, 2006). However, the guidelines do permit the sale of flavored water, which gives SoBe the opportunity to offer their product in schools. Sales to children will help them to grow their customer base, and of course these kids will...