STRATEGIC MANAGEMENT

S'WELL BOTTLES

GROUP 3 | SECTION D
KORUKONDA VISWARAJ - IPM01107
JYOTSNA A - IPM01103
MANAN JAIN - IPM01111
MALIVAI RAMMOHAN - IPM01110
KRITIKA SARAN - IPM01108
PHAGUNI PRAJAPATI - PGP13168
RUPIL GOYAL - PGP13198
CASE INTRODUCTION

Founded in 2010, with the vision of offering a sustainable metal

water bottle that combines high function with fashion.
Keeps drinks cold for 24 hours and hot for 12 hours
Premium product selling at a minimum retail price of $35
Kauss,the founder handled everything by herself, with only abut
35 employees

PROBLEM STATEMENT
Whether to launch S'ip and collaborate with a giant discount retailer?
If yes, then how to manage the operations and avoid cannibalization?
 KEY SUCCESS FACTORS OF S'WELL

Value Congruency: The personal vision of Kauss was reflected through brand-differentiation, mission-
driven and operationally, financially disciplined. These values were reflected across product
functionality, retailer and supplier networks.
Retailer Partnerships and Network: The ability of the brand to rope in the key retail accounts:
Nordstrom, J.Crew, Athleta, and Apple’s Cupertino store; and Starbucks.
Positive WOM, Celebrity Endorsements: The marketing and promotional activities that led to positive
WOM, and PR. Moreover, the high profile, free celebrity promotions through Ellen DeGeneres, Jimmy
Kimmel, and Tom Hanks are a great factor.
Independent Founder: Kauss was not bound by any constraints, like those from investors who would
not agree to some of the actions taken by Kauss in the path of making a premium brand.
Focus on brand building: The focus of Kauss was on building a premium high functional brand that
satisfies all the diverse needs of the customers and also gives them a stylish outlook on the outside.
EXTERNAL ANALYSIS: PORTER'S FIVE FORCES

Rivalry Among Threat of new Buyer Threat of Supplier

Firms Entrant Power substitute Power

Moderate High Moderate Moderate Low

There is market currently
Even though S'Well enjoys Due to availability of
The main substitutes
S'Well has genuine and

present at the lower end

consumer loyalty, a market
cheaper alternatives,
for S'Well are the low-
positive relationships with

of price scale which sell

for high-priced and
buyers might have some
cost plastic-free
resource providers and

plastic-free bottles,
premium bottles has been
price negotiating power. bottles, copy-cat
suppliers.
stainless steel bottles, and
established, and it may not
However, S'Well is very
brands, etc. They have also focused on

insulated bottles. be very hard for a new

firm with their prices and
While they might be
getting partners who

These bottles do not have

brand to enter the space. target market, and has
able to gain some
exhibit and follow the

the same brand perception

With the right connections
been successful till now. market share, they will
same values as them, thus
as extremely functionally
and partnerships they can
Many companies and
not be able to have
making it hard for other

efficient and fashionable

establish a similar brand
celebrities are looking to
much impact on the
brands to steal or imitate

like S'Well perception and eat up

collaborate because of
main consumer base of
them.
S'Well's market share. the S'Well brand. S'Well
SWOT ANALYSIS

Strength Weakness Opportunities Threats

Status Symbol Weak Legal Protection Entering Giant
Me Too Products
Positive PR Coverage Less workforce Discount retailer
Cannibalization by

Connection with
Kauss - Jack of All trades market S'ip
buyers - Ethical
Huge revenue
Mismanaged

Brand generating
supply - demand
Established with
opportunity with S'ip Already existing

Starbucks brand - Oggi to

Refreshed product
compete with S'ip
lines every year
CHALLENGES OF ADAPTING
SIP ON EXISTING BRAND

Brand Dilution
S'well's major distinctive core competency lay in the Premium Brand Value they've built over time and not
1 particularly the excellent quality or the sustainability notion associated with it, them launching a product in
mid-price segment would dilute their brand value over time, making the brand name not prideful enough
for celebrities to hold and the bottle in-itself expensive at $25 Price point for general audience to buy.

Brand Dilution
S'well's major distinctive core competency lay in the Premium Brand Value they've built over time and not
1 particularly the excellent quality or the sustainability notion associated with it, them launching a product in
mid-price segment would dilute their brand value over time, making the brand name not prideful enough
for celebrities to hold and the bottle in-itself expensive at $25 Price point for general audience to buy.
VRIO FRAMEWORK

Element Valuable Rare Imitable Organization Impact

There can be many

Brand

Yes Yes Yes Yes organizations that can come

Name up with the same concept.

The brand is recognized

Brand
through the positive PR it

Yes Yes No Yes received which gives S'well a

Image
competitive advantage.

The product design is diverse

Product

Yes Yes Yes Yes but can be imitated by other

Design competitors easily.

 VRIO FRAMEWORK

Element Valuable Rare Imitable Organization Impact

The concept of philanthropy can

resonate with many people of

Philanthropy Yes No Yes Yes the current generation, can be

imitated but not easy to sustain.

Customers stick to brands that

provide high quality product

Quality Yes No Yes Yes but an additional feature can

give an advantage.

The deal is highly valuable to

Starbucks
S'well but they must continue

Yes Yes Yes Yes their strong relationship with

Deal
Starbucks,
RECOMMENDATIONS TO
THE PROGRAMME

Release Sip, a somewhat less expensive version of S'well, in accordance with the Target agreement; Target has previously
carried out such a collaboration effectively.
Employ extra personnel to work on Sip bottles, handling the launch of the product and focusing on the release of new
designs and expanding the product's reach.
Approach the same factory and discuss scaling options with them. Additionally, they can utilise some of the same
components and procedures in Sip to reduce the variety of raw materials.
Target more businesses that want to adopt a more eco-friendly policy and stop using plastic bottles.