From the consumer research results, HEB saw that there were two segments to target in the bottled water market: First segment valued imported water, second segment didn’t care about imported water, more specifically, this segment valued Texas spring water. H-E-B Glacia, as an H-E-B brand, should be positioned as an upscale entry against imported waters such as Evian. Imported water customers even preferred Canadian water to French water. So, Rob Price should do the following: 1. Product - Packaging is very important. We understand from the case that valuable features of the product don’t come forward in current packaging. Rob Price needs to work on a new packaging to make these features, such as Canadian spring water, more visible.
2. Promotion - When prompted without packaging, only 19% of Glacia consumers were aware the product was bottled in Canada. 64% believed it was from Texas. Even when prompted with packaging, only 74% of customers recognized Canada as the source. HEB needs to advertise this product to emphasize the Canada message. In-store promotion such as staff introducing and explaining the features would work. 3.Price – Increase the price to be higher than Ozarka but lower than Evian. 4.Placement - Move the Glacia product closer to Evian to give the impression that they are in the same category.
What is the role of the H-E-B and Hill Country Fare private label brands? How should they be positioned with respect to other brands in the category? How should they be priced? In order to answer the question, first we need to ask why retailers want to promote store brands:
Retailers carry store brand products because of the fact that they can sell them with a higher gross profit margin. Store- brand products are generally cheaper than national-brand products because the retailer can optimize the production to suit consumer demand and reduce advertising costs. National brands are on average...