Hoist Project #2 - Ali Kasirosafar

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Facebook.com/drinkhoist Twitter: @drinkhoist Website: drinkhoist.com

Background: Hoist has developed a beverage that is clinically proven to “hydrate faster”. They have a task in which they need to sell at least 219,000

bottles a year in order to keep the beverage on the shelves of Kroger. (Hoist, 2014) The research problem at hand is that Mil lenni-

als, in particular, do not have the knowledge of what Hoist is or what terms like “isotonic” means. A survey study given to 110

Northern Kentucky University marketing undergraduate and graduate students found that 13% of those students who are un-

exposed to Hoist and their isotonic water knew what Hoist is (Appendix, Chart A) . Another survey study was given to

Northern Kentucky University marketing students found that when in need of an electrolyte drink, only 17% said isotonic,

while almost 57% said they had no clue. The other 26% said either hypertonic or hypotonic – which can be said for compe-

tition like Gatorade, PowerAde, G2, Sobe LifeWater, and Propel, respectfully. (Raska, 2014). This data shows a lack of

knowledge of isotonic drinks, as well as a target audience that knows more about brands like Gatorade because it’s closely

associated with “hydration”. Through a different survey given to 89 students, 65% would choose water as the one drink to

rehydrate during a workout (Appendix, Chart B). Hoist wants to show Millennials what “isotonic” means, and that it can hy-

drate faster than any other sports drink on the market. They want to also show that this “instant hydration” is more efficient

than the leading competitors.

HOIST: FAST HYDRATION, IN BALANCE Ali Kasirosafar

Date of Submission: December 15th, 2014

Recommendations:

Who: Hoist should target a customer that is in the Millennial segment (18-34), lives in the Greater Cincinnati area, has a disposable income, works out

at least 2-3 times a week, maintains a healthy, well balanced diet, and values what is taking place within the brands they use. Hoist should also focus on

customers that value their healthy lifestyle, and are constantly wearing sports brands (Appendix, Chart C).

What: Hoist should tell their target customers what is isotonic (in plain English), explain the process that makes isotonic drinks so unique, and compare

what makes them stand out from the competition. (Appendix, Chart E). Hoist should also tell them about how, as a brand, they are locally owned and

operated, are aware of causes, and that they support our local community and sports teams (Figure 1).

How: Through the use of social media advertisements, especially to those with Apple products, and co-branding with a familiar product, Hoist should

hook the customer into learning about the drink, why they are better than the competition, and that the drink can be found at Kroger. All of this would

be tied under the value proposition: Hoist: Fast Hydration, In Balance. (Appendix, Chart D).

Rationale: Millennials today factor for around $600 billion spent per year, and it’s no surprise that the number will continue to rise to around $1.2 trillion by the year

2020 (Donnelly, 2014). With how much this group spends per year, Cincinnati Mil-

lennials alone average around $17,122 per household (ACS, 2012). Millennials val-

ue health and fitness, and to them, it involves being physically fit – 60% of them

believe that’s what health and fitness means to them! (Hartman, 2014). A well bal-

anced diet is key with a healthy lifestyle, and a Boston Consulting Group survey

found that 37% of Millennials would increase their spending on fresh fruits and

veggies, 25% on organic food, and another 23% on natural products (BCG, 2013).

Values do play a big role in how a Millennial will purchase into a brand, and it’s

known that having a two-way relationship between customer and brand through

the use of cross-platform, media, and branding will create value for Hoist, and

have the values of the company reflect on the Millennial. (Barton, et al., 2014).

These factors above will be able to help position Hoist in a way that will meet the

standards of an ideal target customer. Referring back to the Northern Kentucky

University marketing data, 57% of the sample had no clue what the term

“isotonic” means. They know more about the completion and what those drinks

are made of, like Gatorade. (Raska, 2014a). On the flipside, around 17% of the

sample population said that they do like or extremely like the Hoist brand (Raska,

2014b). The idea is to take that percentage, build on that with new knowledge

about the brand and “isotonic”, and let them tell other Millennials – because the

biggest influence for Millennials today is their friends and peers. (Barton, et. Al, 2014). Hoist has a perfect balance of sodium and potassium compared to

those of the competition, and the fact that it can work as soon as it enters your bloodstream (Hoist, 2014). Promoting Hoist should be easy to reach – as

75% of Millennials have some sort of profile on a social media site. (PEW Research Center, 2010). Since Millennials use technology every day of their lives –

the can be easily influenced from being on those sites alone. To also help bring awareness to the brand, licensing and co-branding should be bought into

place to help realize that Hoist is just more than a brand (Morrison, 2014). For Hoist, Millennials said the three most likely stores they would buy a product

or service from were Kroger, Chipotle, and Starbucks. (Raska, 2014).

Figure I - Positioning Strategy

13% of non-exposed students know about Hoist and their products (see Appendix , Pg. 4, chart A)

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Facebook.com/drinkhoist Twitter: @drinkhoist Website: drinkhoist.com

PROMOTIONAL STRATEGY STORYBOARD WHO:

David is a 24 year old entry-level marketer cur-

rently residing in Cincinnati. A recent graduate

from the Northern Kentucky University, he works

a 9-5 job at a local firm, and after work, heads

over to Planet Fitness to engage in his workout.

He works out 2-3 times a week, focusing on

keeping a balanced workout. During his workout,

he rehydrates with water, or Gatorade if it’s

available. He has an income that he uses to pur-

chase organic/healthy foods at Kroger. He values

brands such as Planet Fitness because of the

way they don’t criticize his workout regimen.

WHERE:

David should be targeted at Plan-

et Fitness, located in Finneytown,

OH. He can be made aware

through ads that are posted

throughout the gym that explain

the “Fast hydration, In balance”

value proposition, as well as be-

ing informed about the product/

brand in the front desk/

rehydration area (Fig. 3, left),

where he can be presented with

the ad below, as well as sample a

flavor.

Figure 2 - David, Target Customer

Figure 3 - Planet Fitness Front Desk

WHAT:

Figure 4 - Hoist Advertisement Concept

HOW: Once David has sampled the product and learned

enough information about what Hoist does, he will

be informed about a app that is available on the

Apple App Store for free. When he downloads

the app, he will receive a coupon that will enti-

tle him to try a bottle of Hoist absolutely free.

He will redeem it at his neighborhood Kroger.

Once he’s had his first full bottle of Hoist, he will

then develop brand loyalty to Hoist. In order for Hoist to

meet their sales objective, David would have to buy the

product at least 3 times a week, which would result in

him buying the 12 bottles per month, which results in 144

bottles per year.

HOIST: FAST HYDRATION, IN BALANCE

The Hoist Brand Story Hoist is a company that is locally owned and operated

in Cincinnati, OH. They value balance in a person’s

lifestyle, and with that comes the idea of creating a

perfectly –isotonic drink. They believe that “balance”

is getting the correct amount of nutrients in your

body w/o added sugars or calories. Hoist is wanting to

change the sport beverage market for the better.

Hoist wants to #LiftLimits.

The Hoist Product Story Hoist isotonic beverage is the perfect balance of po-

tassium and sodium to give your body the “fast hy-

dration” it deserves. It trades off sugars and calories

for a formula that is in balance. It’s also the only com-

mercially available isotonic beverage on the market.

=12 # of bottles need-

ed per month

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Facebook.com/drinkhoist Twitter: @drinkhoist Website: drinkhoist.com

HOIST: FAST HYDRATION, IN BALANCE

Methodology: Throughout the semester, I was charged with gathering not only already-created secondary data, but also creating and implementing

primary data. For secondary data, I used sites such as Boston Consulting Group and Pew Research Center, for example, to help gather

already existing data about Hoist’s ideal target customer. Then, I gathered primary data through the use of experience surveys, obser-

vations, and sample surveys to gather an understanding about the causes of Hoist’s marketing problem, and to gather insights about

my own peers that could help solve the marketing problem. All primary data sets are listed in the Appendix, each with their own

bottom line summary and methodology. See page 4 for the Appendix.

References: Barton, et. al. (2014). The Reciprocity Principle: How Millennials Are Changing the Face of Marketing Forever. Boston Consulting Group. pp 3-4 Bell, P., & Cook, N. (2014). How Millennials Spend. The Atlantic. Retrieved on October 19, 2014, from http://www.theatlantic.com/business/archive/2014/09/how-millennials-spend/379713/

Cincinnati OH Historical Median Household Income by Age Data. (2012). American Community Survey Retrieved on Oc tober 18, 2014 from http://www.usa.com/cincinnati-oh-income-and-careers--historical-median-household- income-by-age-data.htm

Donnelly, C., & Scraff, R. (2013). Who are the Millennial shoppers? And what do they really want? Accenture. Retrieved on October 19, 2014, from http://www.accenture.com/SiteCollectionDocuments/PDF/Accenture-Outlook- Who-Are-Millennial-Shoppers-What-Do-They-Want-Retail.pdf

Hoist Is…Pure Hydration. (2014) Hoist. Retrieved on October 9, 2014 from http://drinkhoist.com/

Millennials: A Portrait of Generation Next. (2011). Pew Research Center. Retrieved October 19, 2014 from http:// www.pewsocialtrends.org/files/2010/10/millennials-confident-connected-open-to-change.pdf

Morrison, M. (2014). Cinnabon's Recipe For Expansion: Licensing and Co-Branding. AdvertisingAge.Retrieved on Octo- -ber 9, 2014 from http://adage.com/article/news/cinnabon-expands-licensing-vodka-air-fresheners/291726/

Raska, D.(a). (2014). Let's assume that Rocky needs to drink something with electrolytes. Which of type of electrolyte drink should he pick? Pick the best option again only/Let's assume Rocky needs to drink some kind of comer cially available drink to recover in less than 60 seconds. Which of the following should he drink? Pick the best option again only. Retrieved on October 18, 2014 from slides 43 & 45 of https://www.dropbox.com/ s/9i1pswvywr7bjcf/MKT_392_Workbook_5_2.pdf?dl=0

Raska, D.(b). (2014) How much do you like each of these brands? / How likely it is you will purchase some products from these brands? Retrieved on October 18, 2014 from slides 30 & 31 of https://www.dropbox.com/s/ n1hxquciakdmoy1/MKT_392_Workbook_4_2.pdf?dl=0

What Health & Wellness Means to Millennials. (2013). Hartman-Group. Retrieved on October 19, 2014 from http:// www.hartman-group.com/acumen/H-W-millennial-Meaning-2014-07-17.pdf

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Facebook.com/drinkhoist Twitter: @drinkhoist Website: drinkhoist.com

HOIST: FAST HYDRATION, IN BALANCE

APPENDIX

13%

1% 5% 8%

96%

16%

72%68%

0%

20%

40%

60%

80%

100%

120%

Exposure of the Hoist brand and effects of exposure (in %)

Not Exposed (n=85)

Exposed (n=25)

*Top box percent is represented (know a lot)

**Top four box is represented (at least once a week)

65%

9%

0%

63%

8%

13%

0%

10%

20%

30%

40%

50%

60%

70%

Water* Gatorade Hoist

Preferred Choice of Hydration Beverage When Sweat is Present

Not Exposed (n=65)

Exposed (n=24)

*Top box percent is represented (water)

0%

21%

100%

57%

86%

100%

50%57%

50%

0%

50%

64%

14%

0%

100%

0%

100%

57%

43%

100%

29%29%29%

14%

71%

57%

14%14%

0%

20%

40%

60%

80%

100%

120%

Demographic & Brand Observations of Casual Students

Male (n=14)

Female (n=7)

Bottom Line: Students who have never been exposed to brands like Hoist are very likely to forgo any sort

of decision that would result in them consuming, purchasing, or liking the Hoist brand and/or the product

itself. Through the use of exercises that cause learning of the brand, as well as samples of the product ,

students would be over ten times likely to be involved with the Hoist brand and/or purchase the isotonic

beverage.

Methodology: Convenience sample of students enrolled in Dr. Raska’s Fall 2014 classes (n=110) were

offered extra credit and recruited via e-mail announcement (78% response rate). Respondents

completed the online sample survey between October 27th and November 21 , 2014 one month

after the brand exercise was completed. Data was analyzed through Excel.

Bottom Line: Students tend to choose water as their preferred choice of hydration beverage when they sweat,

followed by Gatorade in second. Since they are the more common choices in hydration beverages, this leads

the data to skew more sharply left, and leaves those like Hoist in the smaller percentile. After students were

exposed to Hoist, the results show that although a vast majority still use water, but a trade-off resulted in 13%

of respondents using Hoist as a hydration beverage for a workout, with that number counting to grow.

Methodology: Convenience, non-random sample of students enrolled in Dr. Raska's MKT 205, MKT 333, and

MKT 392 classes (n=89, 60% response rate) were recruited via email to participate in a voluntary

survey in exchange for extra credit. Respondents completed the online survey between the dates

of November 19 and November 21, 2014. The data was collected after MKT 392 students complet-

ed Hoist exercises, with the data being analyzed through Excel.

Bottom Line: When people visit the drink/sports drink isle at Kroger, they tend to be a younger, Millennial -

aged student from NKU that look like they have been working out, always wear sport brand names like Nike

and Under Armour, and are for the majority wearing sports shoes compared to casual clothes. Both genders

seems to top in these three observation categories, while males outweigh females in being well built and

being single/married. Females outweigh males in wearing spandex and headbands. The idea is that the

people who actually take the time to buy sports drinks at Kroger are actually the ideal customers themselves

that Hoist can target.

Methodology: The observation was conducted at the Kroger located in the Cold Spring, KY plaza on Nov.

8th, 2014 (n=20). The sample was a non-representative, random pool with the observation that lasted from

12:00 noon till 2:00 P.M. The general nature of the topics selected to observe were based around the values

that Hoist would deem acceptable for their target market. The data was collected and analyzed through

Excel.

Bottom Line: On the flipside, we can examine ways of meeting Hoist’s target sales by looking at it

from a different perspective - inside a college classroom. Through observations, we can see that

those who are in anon-gym setting tend to be wearing casual clothes, be seen walking around in a

backpack, and be using Apple products that includes iPhones, MacBooks, and iPads. Males are domi-

nant in areas like wearing hats and carrying around traditional supplies, while females dominate in

having long hair and having smartphones (Android included). These categories indicate which areas

can Hoist appeal to in terms of fashion likes, as well as spread the contagious message through the

Apple platform.

Methodology: Observations were conducted in Dr. Raska’s MKT 392 (n=21) on October 21, 2014

between 12:15 pm till 1:30 pm. The observations were direct, undisguised when walking, structured

like a study, and recorded with pen and paper. The data was then transferred over to and analyzed in

Excel.

78%

44%

22%

67%

78%

89%

11%

22%

67%

44%

64%

18%

9%

64% 64% 64%

36%

27%

36%

27%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Demographic Trait Observations of Kroger Shoppers

Male (n=11)

Female (n=9)

A. B.

C. D.

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Facebook.com/drinkhoist Twitter: @drinkhoist Website: drinkhoist.com

HOIST: FAST HYDRATION, IN BALANCE

What do students think about the brand Hoist after client interviews….?

APPENDIX, Cont.

Bottom Line: After students gain insights about Hoist as a brand and a company, they are more than like-

ly to gain a better understanding about a company that’s beyond the brand. They will see what causes

they can relate to, how the company projects themselves through social media, and how they can be

directed to Kroger with ease and free of hassle.

Methodology : Experience interviews were conducted with Mr. Heekin and Ms. Rachel Cox of Hoist on

October 17, 2014. The interview lasted around an hour and 15 minutes, with 22 students from Dr.

Raska’s MKT 392 class asking questions related to their client projects on Hoist. The data was gathered in

a convenience online survey and was analyzed through Wordle.

68%

57%

48%

66%

94%

62%

74%

32%

51%57%

42%

13%

83%75%

13%

33%

58%

25%

17%8%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

What do you think makes up an "instant hydration" beverage?

Not Exposed (n=65)

Exposed (n=24)

E. Bottom Line: Students who were not exposed to Hoist reported that

a beverage that can hydrate in a instant would contain phosphorus

to carbs, to even something unhealthy like sugars. Through the ex-

ercise of the Hoist brand, as well as defining what “isotonic” means,

there can be a better understanding of what Hoist is, and, in the

long run, can make the student more aware of what Hoist and the

competition contains in their beverages.

Methodology: Convenience, non-random sample of students en-

rolled in Dr. Raska's MKT 205, MKT 333, and MKT 392 classes (n=89,

60% response rate) were recruited via email to participate in a vol-

untary survey in exchange for extra credit. Respondents completed

the online survey between the dates of November 19 and Novem-

ber 21, 2014. The data was collected after MKT 392 students com-

pleted Hoist exercises, with the data being analyzed through Excel.

F.