HEB's Private Label Water Bottle "Glacia"

Case Study Analysis
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Case Study Analysis
Executive Summary
The case study focuses on H-E-B, a Texas-based grocery chain that seeks to launch a new bottled water brand named Glacia. The market is highly competitive, with national brands controlling the market. Glacia is of high quality, which is instrumental in making it competitive. However, the post-launch report demonstrates that the sales for Glacia were slower than anticipated, meaning the brand struggled to gain a significant market share. H-E-B must address its marketing strategy, especially pricing, packaging, and promotional strategies.
sssPEST Analysis
* Company
Political: H-E-B operates in a political environment where it has to adhere to the laws and policies made by the government. Changes in laws and policies affect how H-E-B operates. For instance, high taxation means that the cost of doing business will be high for H-E-B, significantly reducing the profit.
Economic: The state of the economy affects H-E-B’s sales and profitability. A growing economy is significant in enabling H-E-B to expand its operations. It will ensure that consumers have more purchasing power and are willing to shop more. However, inflation will reduce the purchasing power of consumers and significantly reduce sales for H-E-B.
Sociocultural: Clients' preferences play a significant role in the demand for H-E-B’s products. H-E-B must identify what consumers want if it wants to make more sales. Moreover, the business must constantly observe lifestyle trends and adjust its services to cater to emerging trends.
Technological: Technological advancements require H-E-B to adopt the latest technologies in its supply chain, administration, and marketing. Technology will enable H-E-B to operate more efficiently.
* Water Bottle Category
Political: Glacia must comply with all the required regulations on water safety.
Economic: The cost of production of Glacia plays an important role in its pricing. The product is bottled in Canada, making shipping to the US more expensive than domestic water (Rangan & Bell, 2002). This can make Glacia less competitive in the market.
Sociocultural: Consumer behavior determines the demand for Glacia and how it can compete with other water brands in the market.
Technological: Technological advancement allows Glacia to embrace production and packaging to ensure high quality.
3Cs
* Company
Customers: H-E-B’s customers are concentrated in the US, particularly in Texas, where it is headquartered. The business focuses on getting a small margin for its products, meaning its major target customers are diverse, and start from lower income earners.
Competitors: H-E-B faces stiff competition from other stores like Walmart, Comm.Px/Bx, Super Kmart, Whole Foods, and Kroger.
Company: H-E-B is a privately held supermarket chain with numerous stores throughout the US state of Texas. The business strives to provide affordable products to its clients.
* Water Bottle Category
Customers: The customers for Glacia are individuals who want high-quality water at affordable prices. The clients are price sensitive and would easily shift to other brands if they feel Glaci...