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Homework answers / question archive / Hint Water began 15 years ago when founder Kara Goldin decided to make changes to her lifestyle

Hint Water began 15 years ago when founder Kara Goldin decided to make changes to her lifestyle

Marketing

Hint Water began 15 years ago when founder Kara Goldin decided to make changes to her lifestyle.  The mother of three (now mother of four) had recently left her high-profile job as vice president of shopping and e-commerce partnerships at AOL, where she had built revenue to more than $1 billion in less than seven years. Then she took time off to plot her next move.  She expected her path to veer towards work with nonprofits, but instead her path veered into the beverage industry. Noticing low energy levels and skin issues, she began to suspect her reliance on “diet” beverages that were packed with added sugars and artificial sweeteners.  However, when she tried to drink only water, she struggled with the taste.  This realization led to the creation of Hint.

Today, Hint is the largest non-alcoholic beverage company in the United States that isn’t affiliated with Coca-Cola, Pepsi, or Dr. Pepper Snapple.  Since starting Hint Water in her basement in 2004, and running the business from her dining room table and out of her garage, her offering, which contains no sugar, no preservatives, and no calories, has become a leader in an emerging category known as natural essence waters. While Goldin and husband, Theo, a former attorney at Netscape and Hint’s COO, originally targeted natural and specialty stores, the product is proving to have wider appeal. Today, the waters, flavored with extracts of watermelon, raspberry-lime, and more exotic blends like pomegranate-tangerine, are among the fastest growing of the flavored waters at Whole Foods and sold at mainstream markets, including Publix, CVS, Food Emporium, Stop & Shop, Sheetz convenience stores, and online sites like Amazon.com. Hint has made cameos on Grey’s Anatomy, Boston Legal, and CSI and is the “official flavored water” on the Google campus.

Goldin states that “there are more than 2,000 beverage companies in the United States today, but it’s hard to name a beverage company that’s actually about health. There’s a lot of healthy perception versus healthy reality. We’re really focused on changing health; we’re actually, like I said, hearing from lots of consumers that we’re doing it.”

Hint has recently launched into new areas, including a sunscreen. Goldin says, “We’re launching sunscreen to call attention to chemicals like oxybenzone and parabens, which are in 95 percent of the sunscreens available to the average consumer in drugstores like CVS and Walgreens and elsewhere. I’m really, really excited. It speaks to the mission of the overall company, which is [to be] a consumer advocate and help people actually understand products. In doing so, we also offer products for sale that really help people get as healthy as they want to be.”  Hint has also added new products in the categories of deodorant, hand sanitizer, masks, and more.

Questions:

1)  Evaluate the quality of the new brand extensions using the criteria in the chapter. Would you have advised going into all of these markets?  If you wouldn't have, which ones would you have advised not entering?  Be sure to provide your rationale.

2)  Into what other product categories do you think Hint should expand next? Provide your rationale. Make sure to do your research here (i.e., don't choose categories that Hint has already expanded into or has publicly announced they are expanding into).

 

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Hint Water Company

  1. Evaluate the quality of the new brand extensions using the criteria in the chapter. Would you have advised going into all of these markets? If you wouldn't have, which ones would you have advised not entering? Be sure to provide your rationale.

According to Wilson & Gilligan (2005), the core elements to be considered in product evaluation include product attributes, product, benefits, and marketing support services. When focusing on the first line of products – water that is flavored with watermelon, pomegranate-tangerine, and raspberry-lime, it is clear that these products have great attributes that enhance the brand image of the company. The use of these flavors enhances the company’s offering and strategy of offering healthy products. These products have many benefits to users and it would enable offering marketing support services in a manner that enhances brand image and recognition. Sunscreen is another great product offered by the company. The attributes of this product definitely support the objectives and goals of the company to offer healthy products to users. Sunscreens also guarantee many benefits to the company, especially increasing the company’s product awareness. The product also helps to enhance marketing support services to clients as it confers many benefits to users. The introduction of masks and hand sanitizers is also strategic because they are associated with health. These products are beneficial during the ongoing pandemic and it would help to enhance the company’s offerings as it pertains to provision of healthy products. Production of these products would help to increase the company’s position in offering health-affiliated products.

I would definitely advice the company to venture in the above highlighted products because they would help to improve brand recognition, status, and image in the market. Adding other product categories is also beneficial for a company because it helps in expanding the products portfolio. This would help the company to be well placed in terms of offering healthy products. I would advise the company not to venture into deodorants because they do not directly support health initiatives. Deodorants are predominantly used for beauty and fragrance and thus do not support the company’s goal of offering healthy products to clients.

  1. Into what other product categories do you think Hint should expand next? Provide your rationale. Make sure to do your research here (i.e., don't choose categories that Hint has already expanded into or has publicly announced they are expanding into).

From the evaluation of the case and the offerings in the beverage industry, the other product categories that Hint could introduce to expand their product portfolio is sleep drinks, vegetable juices and drinks, syrups, milk drink products, shakes, hot drinks such as coffee, squashes, as well as smoothies. These products offer many benefits to users and would definitely attract more customers to the company. Sleep drinks are beneficial to users as sleep could be a health issue to many individuals. Sleep drinks bridge the gap left with insomnia by helping users find meaningful sleep (Grey House Publishing, 2010). Vegetable juices and drinks are also beneficial because they add to the vitamin requirements by customers and could help those with vitamin deficiencies. Milk products are also essential for customers since they help in giving customers extra calcium and other nutrients offered by milk. Hot drinks such as coffee could also help users who are after products that can energize them and give them a better mood. Mood control and management is a critical issue in psychology and coffee could help clients with mood issues to feel better (Sanders, 2016). Syrups, shakes, squashes, and smoothies are other essential products categories that could be tailored to meet unique health needs of customers. These products will definitely help the company to improve its offerings in health products, making it more competitive in the market.

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