Larry Bodkin had a tough road ahead of him when he became president of White Rock Beverages. Founded in the late 1800s, White Rock’s sparkling water reached its heyday in the early 20th century as the water of the upper class.
However, by the end of the century, White Rock was struggling to survive in the face of intense competition from global brands with gigantic marketing budgets.
Now more than 140 years old, White Rock has used a combination of different marketing strategies to revitalize itself. For years it utilized a hybrid distribution system to sell to distributors in some markets and to retailers in other markets. In the process, White Rock uses customer service as a differentiator between its beverages and its competitors.
Because customers find the company responsive to their needs, many stay loyal to the White Rock brand.
Another way in which White Rock differentiates itself from companies like Coca-Cola and Pepsi is by its branding strategy. The company recognizes that one of its key strengths is as a premium brand for a niche market segment.
White Rock targets the health-food segment by marketing itself as a unique, healthy brand. It also capitalizes on its history as one of the oldest sparkling beverage companies in America. This brand appeal has become so important that White Rock challenged Coca-Cola after Coke claimed that it created today’s modern image of Santa Claus.
Bodkin demanded an apology from Coca-Cola when it was revealed that White Rock had been using the modern Santa Claus ad two decades prior to Coca-Cola’s Santa ads. By developing a strong, authentic image for each of its brands, White Rock is building on recent trends toward “artisanal”
foods that emphasize quality and distinctive traditions.
White Rock’s marketing efforts have been successful in stimulating revenue growth. However, since the brand has matured (meaning that growth will likely be minimal), the company is adapting its strategy by introducing White Rock in new containers and sizes. For instance, it developed the White Rock Punch ’n’ Fruity juice boxes, which are meant to appeal to on-the-go consumers and parents. Additionally, White Rock is breaking into the organic industry with its line of White Rock organics, made with cane sugar and natural fruit extracts.
White Rock is also pursuing an acquisition strategy of other brands. In addition to the White Rock brand, the company owns the Sioux City and Olde Brooklyn brands, brand names that seem connected to a bygone era. White Rock credits its nationally distributed Sioux City brand as one of the first brands of soft drinks to carry a Western theme.
Olde Brooklyn’s flavors are named after Brooklyn neighborhoods, a nostalgic appeal that connects with customers seeking brands with authenticity and history. Olde Brooklyn also lacks preservatives, which helps it appeal to the health-food market. By using brands such as Olde Brooklyn to gain entry into health-food stores and other retail segments, White Rock has expanded its distribution to 40 states and is already planning for future growth. 18 Questions for Discussion 1. How would you describe White Rock’s strengths, weaknesses, opportunities, and threats?
2. What do you think White Rock should do to gain competitive advantage?
3. What elements of the marketing mix could White Rock change to improve its marketing strategy?