simply sigg
TRANSCRIPT
Executive Summary
The Company:SIGG was founded in Switzerland in 1908 when Ferdinand Sigg opened an aluminum
product factory outside Zurich. The fledgling company produced durable and long-lasting
household products like saucepans, frying pans, and bottles from aluminum, which Sigg
considered “the material of the future.”
After 80 years of business in Switzerland, SIGG developed a new shape and design for one
of its products: the bottle. The redesign of the bottle, followed by a 1993 appearance in the
Museum of Modern Art in New York, led to significant success for SIGG. In 1997, a
European-based investor group bought SIGG and focused on making it an environmentally
friendly and responsible company.
In 2005, SIGG expanded its market and launched a United States subsidiary based out of
Stamford, Connecticut. Although SIGG is still headquartered in Switzerland, the
establishment of its U.S. subsidiary has presented SIGG with the opportunity to break into
the American market.
The Product:SIGG water bottles are 100% recyclable and are manufactured in an ecologically friendly
environment. SIGG boasts a useful life for each bottle of between 10 and 20 years and come
in approximately 100 unique designs.
The SIGG bottle is produced from a single seamless sheet of aluminum, making it extremely
durable and long lasting. In fact, Backpacker magazine conducted a test of several water
bottles and awarded SIGG’s the title of “World’s Toughest Water Bottle.”
In addition to its resilient outside, the SIGG bottle is lined with a special coating, resistant to
remnants of fruit juice acid, energy drinks, and alcohol. The composition of the liner also
deters the buildup of bacteria, limiting the amount of times users must wash their bottles,
which enhances the environmentally friendly aspect of a SIGG.
The Problem:In 2007, the Environmental Protection Agency found that many of SIGG’s competitors were
using plastic containing BPA, a chemical used to harden plastic that has been linked to
diabetes, premature puberty in girls, reduced sperm count in men, and in some cases, cancer.
In the wake of this controversy, SIGG boasted that their bottles’ plastic liner did not leak
BPA into the contents of their bottles, resulting in increased profitability for SIGG.
Further investigation of SIGG bottles, however, showed that the plastic liners manufactured
before August 2008 actually did contain BPA; as a result, SIGG’s customers were angry
about the company’s lack of disclosure and concealment. In addition to this problem, it was
discovered that SIGG had known about the BPA in its liners and had quietly formulated a
BPA-free liner without informing loyal SIGG customers about the issue. This deception
caused the market to lose trust in the SIGG brand, which led to a decrease in profitability for
SIGG.
The Solution:The BPA problem caused SIGG’s once loyal customers to distrust the brand. Thus, it is
necessary for SIGG to restore its reputation as a firm that creates high quality,
environmentally friendly products. In order to achieve this, SIGG must publically apologize
to its customers for its deception. SIGG should also boost its efforts to be more “green.”
Sponsoring a charitable event or giving a portion of the company’s proceeds to an
environmental charity will allow SIGG to prove it truly cares about the environment in
addition to profits. SIGG also needs to establish more transparency and openness with its
customers. An easy way to achieve this goal is to get involved in social media, such as
Facebook and Twitter. Social media provides a forum for consumers and companies to
interact with one another, increasing trust and making customers feel as if they are a part of
the company.
Once SIGG has reestablished its reputation, it should also focus on entering new markets.
With the expansion of SIGG into the United States in 2005, SIGG was faced with many
opportunities to enter new markets—such as the market for college students. For SIGG to
successfully take advantage of such opportunities, SIGG should partner with college campus
representatives across the country to organize events and contests that would work as viral
marketing for their product. Customization of SIGG bottles would also attract the college
student demographic who tend to purchase university paraphernalia. This would establish a
strong connection to the SIGG brand and increase customer loyalty. Last, SIGG should work
to gain product placements for their bottles. Youth are often influenced by those in the media
when making purchases, so appropriate product placements would be essential in persuading
students to purchase SIGG bottles.
PEST Analysis
Competitive Environment: Direct Competition: Other reusable water bottle producers, such as Nalgene
Nalgene is a sub-company of Thermo Fisher, a supplier and creator of laboratory equipment,
supplies, and software. In 2007, Thermo Fisher’s annual revenue was $9.5 billion, around
$65 million of which was generated by Nalgene. Nalgene, being a large supplier of reusable
water bottles, poses a direct threat to SIGG products.
Indirect Competition: The plastic water bottle industry
In 2007, 8.82 billion gallons of bottled water worth $11.7 billion dollars were sold in to U.S.
consumers. According to Beverage Marketing, the U.S. market for bottled water is the largest
in the world, and is still growing. Because plastic water bottles take a portion of the market
that could potentially belong to SIGG, plastic water bottle manufacturers are an indirect
threat to SIGG.
Social-Cultural:Environmental issues are extremely important to modern consumers. Many companies are
moving toward “green” or “sustainable” business practices. SIGG is a company that strives to
be environmentally friendly in both its manufacturing practices and its business tactics. It
makes sense, therefore, for SIGG to target individuals who care about the environment and
are interested in purchasing sustainable and 100% recyclable products, such as SIGG bottles.
Political-Legal:The Environmental Protection Agency (EPA) monitors tap water in the United States. They
require strict testing of all tap water several times a day. This agency is also responsible for
uncovering the BPA contamination that had a significant effect on the reusable water bottle
industry. SIGG must be informed on all EPA rules and regulations, as any rule relating to tap
water will influence the sales of reusable water bottles.
Economic:The current recession makes consumers more cautious when making purchases. There is a
large focus on saving money, especially when it comes to everyday purchases, including
reusable water bottles. Non-reusable plastic water bottles can be convenient but costly, with
one 24-pack costing as much as $12.99, whereas a SIGG bottle is a one-time purchase that
can be reused for up to 20 years.
Technological:
Technological improvements in consumer products are constantly advancing. It is important
for SIGG to keep up with technological advancements that could lead to an improvement in
product quality, a decrease in manufacturing costs, an increase in manufacturing speed, or
any technological advancement that could give SIGG’s competitors an edge.
Also, consumers are using technology such as social media more and more frequently. It is
important for SIGG to stay up-to-date in any social media developments so that they can stay
in touch and communicate with potential customers. Maintaining a presence in social media
will give an advantage to SIGG if its competitors fail to do so.
SWOT Analysis
Strengths
Over 100 years of experience making high quality products
Highly durable product
Environmentally friendly
Trusted brand name (Before BPA scandal)
Customers flocked to SIGG during Nalgene scandal
Weaknesses
Lost trust after BPA scandal
High cost
Lack of interaction and communication with target markets
Not taking advantage of all possible target markets
Opportunities
Connecting with consumers using social media could create more brand awareness,
trust, and increase customers
Giving back to the community could raise awareness of SIGG and could help restore
their reputation
Creating partnerships with area universities can help gain market share and access
into a new target markets
Threats
Direct competition from Nalgene products
Indirect competition from plastic water bottles
Lack of presence in social media
Marketing Mix
Product
The SIGG bottle has been successful for over 100 years and will remain virtually unchanged.
It will be the traditionally durable, stylish, and sustainable aluminum bottle that was once
featured in the Museum of Modern Art in New York. Each bottle will be unique and
customizable with regard to design.
Promotion
Campus representatives will assist in word-of-mouth marketing within the target market.
Campus representatives will hold contests, sponsor events, and disseminate knowledge to
college students about the SIGG brand and its products. In addition, SIGG will be involved in
social media such as Facebook and Twitter, allowing the brand to successfully interact with
consumers. SIGG will use social media to post photos, create contests, host events, and
receive feedback about its products.
Price
SIGG bottles are extremely technologically advanced and are created in an environmentally
friendly environment. Both of these factors lead to an increase in both quality of the product
and price. The price point is higher than an average reusable water bottle, but can be justified
by the product life and the incredible durability of SIGG bottles.
Place
The target market should be able to find the right quantities of the product in convenient
places. Making SIGG bottles available in college bookstores and dining halls would make the
product easily accessible. SIGG already sells products in outdoor stores such as LL Bean and
EMS; however, it can be difficult for students to reach these outlets. SIGG must expand its
distribution to places easily reached by college students.
Creative Brief
Objectives:
Regain consumer trust in SIGG after BPA scandal
Increase sales after decrease due to BPA disaster
Break into new market: college-aged individuals
Show consumers that SIGG bottles are both eco-friendly and useful for campus life
Target Audience: College-aged individuals, ages 18-25
What we know about our Target Market: College students are constantly using water bottles
College students are extremely conscious of the environment and many tend to be
involved in the “green” movement
College students are cost-conscious
College students are influenced by the media and are focused on new developments
and trends
How we want our customers to perceive SIGG: SIGG is a trustworthy, open brand that strives to be environmentally friendly in both
its manufacturing practices and its business tactics
SIGG cares about its customers
SIGG bottles are the most economical, durable, and eco-friendly bottle to carry
around campus
SIGG bottles are convenient and make a consumer’s life easier
SIGG bottles are trendy and fashionable products
Credentials: SIGG has over 100 years of experience in making quality products
Backpacker Magazine named SIGG the “World’s Toughest Water Bottle”
Suggested Tone: Lighthearted
Creative
Informative
Caring
Apologetic
Strategy
To solve the issues facing SIGG, we propose spearheading the campaign with a new tagline:
SimplySIGG. Each day, college-aged individuals are faced with complicated situations: How
can I be cool? How can I give back to my community? What do I do about the environment?
Who am I? What they are really searching for, however, is an easy answer to all their
problems—something to simplify their lives. With this in mind, we created the SimplySIGG
tagline, which demonstrates SIGG’s ability to provide simple and easy solutions to some of
life’s complicated problems. With just one SIGG bottle, an individual can answer all of these
questions. How can I be cool? SIGG bottles are a growing trend—stars like Cameron Diaz
and Adrien Grenier carry them constantly. How can I give back to my community? SIGG is
an environmentally friendly company that donates part of its proceeds to charity, giving
customers the opportunity to give back. What do I do about the environment? SIGG, unlike
many other companies, strives to be sustainable and eco-friendly; SIGG bottles are 100
percent recyclable and won’t hurt the environment like plastic bottles. Who am I? No matter
who you are, SIGG bottles can be custom designed by its freelance artists to suit your desires
and demonstrate your personality. The answer to some of life’s complicated problems?
SimplySIGG.
Survey Results
Out of 78 college students surveyed, data was retrieved to draw conclusions about
environmental importance and knowledge of the SIGG brand within the target market.
87% of students surveyed agree that the environment is important to them
76% are active in their efforts to be environmentally conscious
67.1% of those surveyed agree that plastic water bottles are harmful to their health
and the environment
35.9% do not believe that bottled water is healthier or safer than tap water
37.2% of students frequently carry a reusable water bottle
81% of survey participants do not own a SIGG bottle, but the majority would like to
know more about SIGG and its products
36.7% of students surveyed a familiar with SIGG bottles
The majority of students surveyed are interested in helping the environment and in
sustainable practices. Because SIGG is an environmentally friendly company that specializes
in “green” products, it is logical to target college students.
Many of the students surveyed were unfamiliar with the SIGG brand and its products. They
do, however, have an interest in reusable water bottles and learning more about the SIGG
brand. This interest provides an opportunity for SIGG to break into a new target market and
influence college students to buy SIGG bottles.
SimplySocial
Description:
An official SIGG Facebook page and Twitter handle will allow customers to interact directly
with SIGG. The Facebook page will present photos, create events, and hold contests that
allow consumers to connect with the product. SIGG users will have the ability to post their
very own SIGG photos, stories, and ideas for the company to see. The Twitter handle will
allow customers to pose questions and leave comments for the SIGG brand on a more
immediate basis. SIGG can then respond to these questions and comments, effectively
interacting and satisfying their customers.
Rationale:
We are in an era where consumers are sick of traditional communications. They want to
interact with brands beyond just their logos, products, and press releases. They want a two
way street, a conversation with the brand and the real faces and personalities behind the
company. With over 300 million active users on Facebook and over 8 million U.S. Twitter
accounts, the opportunity for SIGG to interact with consumers cannot be ignored. Using
social media to connect with consumers allows for an increased flow of information, making
customers feel more in sync with brands. In fact, a study conducted by eMarketer found that
social network users who are fans or followers of a company or brand are more likely to say
something good about that company or brand than they are to say something bad.
Maintaining a presence in social media will allow SIGG to rebuild its reputation as a
transparent and caring company while also giving them the ability to connect with new
customers.
SimplySustainable
Description:
An integral aspect of SIGG’s improved marketing activities will be event sponsorships.
Sponsoring events, particularly those that raise awareness about environmental issues and
sustainability, would promote the SIGG brand and its eco-friendly products. One such event
that SIGG could get involved with is EarthFest, a free outdoor spring concert in Boston,
hosted by radio92.9. Several bands and artists who are proponents of environmental issues
participate in the concert; activities at the concert are dedicated to raising awareness about
“green” practices that individuals can introduce into their daily lives. In recent years,
sponsors such as Whole Foods Market, Burt’s Bees, Home Depot, and Starbucks have set up
booths to advertise their “green” products while educating concertgoers. Although EarthFest
is Boston-based, similar events can be hosted throughout the U.S.
Another opportunity for sponsorships would be Earth Day events on college campuses. Eco-
friendly student organizations and environmental proponents on college campuses throughout
the United States organize events in celebration of Earth Day on April 22 to raise awareness
about global warming, pollution, and the benefits of using green practices. SIGG could seize
this opportunity to reach a new target market while simultaneously promoting itself as an
environmentally friendly company.
Rationale:
While SIGG’s goal is to extend its market reach as much as possible, this plan emphasizes
targeting college-aged students. It is not practical, therefore, for SIGG to limit its marketing
efforts to television, radio, and display advertising. Its target market, the environmentally
conscious 18-25 year old, is active, enjoys outdoor activities and is not likely to spend large
amounts time watching TV or listening to the radio. In order to reach consumers with these
active lifestyles, it makes good business sense to sponsor events such as EarthFest and Earth
Day where the younger generation of environmentally conscious college students and
twenty-somethings are likely to gather to advocate for environmental issues and green
practices. For SIGG to sponsor an event alongside a company such as Whole Foods, which is
known for selling only organic, healthy, and unprocessed foods would enable SIGG to begin
rebuilding its image as an eco-friendly company.
SimplyStylish
Description:
The Simply Stylish component of the Simply SIGG campaign aims to strategically place
SIGG bottles with celebrities who share the company’s eco-friendly values. SIGG will
pursue A-list celebrities who not only identify with SIGG’s core objectives, but are also well
received among the target market, college students. SIGG representatives will contact and
contract trendy, eco-friendly stars such as Brad Pitt, Cameron Diaz, Leonardo DiCaprio, and
Jessica Alba, who will be required to attend specific SIGG fundraisers and promotional
events, as well as carry their unique SIGG bottles in public. The goal of the campaign is to
make the media aware of SIGG’s stylish and sustainable product.
The Simply Stylish aspect of the campaign will also seek to form partnerships with major
film production companies to strategically promote and place SIGG bottles in films with
college-aged target audiences. Placing SIGGs in major films could potentially reach those
college students who may not purchase a SIGG bottle in hopes of being eco-friendly; instead,
these students would see SIGG bottles in popular culture and would purchase them because
the bottles are seen as stylish and trendy. For example, the upcoming war films Dear John,
featuring Channing Tatum, and Green Zone, featuring Matt Damon, will both draw large
crowds of college-aged students. In these films, SIGG bottles could potentially replace
traditional military water canteens, allowing SIGG bottles to gain publicity as durable, sturdy
bottles. Though these films may not be eco-friendly, they still have the ability to project
images of the product and brand name to potential buyers.
Rationale:
SIGG product placements will enhance product awareness and ultimately sales. Young and
trendy college students have favorite faces in the media, which they often imitate in terms of
clothing and accessories. Identifying celebrities who influence the behaviors of our target
market will make the individuals in the target market more inclined to purchase SIGG
bottles. Identifying young celebrities with credible reputations to use SIGG products will
have the added benefit of restoring the integrity of the SIGG brand. Stars such as Cameron
Diaz and Jessica Alba, who are often revered for their fashion sense, will render SIGG bottles
current and hip in the eyes of college students inclined to follow the latest trends.
SimplySignature
Description:
Currently, the SIGG bottle comes in hundreds of unique designs, allowing consumers to have
many choices when purchasing a SIGG bottle. However, many college-aged individuals
enjoy being independent, unique, and creative—they want to make a product their own. With
this in mind, SIGG will allow for the customization of SIGG bottles. Not only will
consumers have the option to customize their own SIGG bottle, but also through their college
bookstores, they will be able to purchase botles that display specific school colors, logos, and
mottos, creating a greater presence of SIGG bottles on college campuses. With the
customization option, students will truly be able to demonstrate their unique school spirit
while remaining eco-friendly.
Rationale:
Providing customers with freedom is an excellent way to increase sales. Allowing consumers
to customize their SIGG bottles puts the buyer in charge of the product, providing individuals
with a deeper connection to the SIGG brand. Furthermore, working closely with different
college bookstores will increase the presence of SIGG bottles in schools across the nation.
Whether it is conserving electricity or saving paper, many colleges are joining the “green”
movement. Customization of SIGGs, especially within college bookstores, is a great
opportunity for the company to increase sales while promoting sustainability in a new target
market.
SimplySynergistic
Description:
SIGG aims to connect with and get involved in its customer base. To do this, SIGG will link
with college campus representatives at universities across the United States. These
representatives will be marketing or communication majors who will arrange and host on-
campus events such as contests, booths, and promotions. This student representative would
assist in spreading knowledge about SIGG products to their college campus as a sort of viral
marketing campaign. The student representative would also be particularly helpful in the
Simply Signature aspect of the campaign because the student liaison would have insight into
what the students on each campus would want to purchase, allowing for a more successful
targeting of the college-aged market.
Rationale:
According to the Edelman Trust Barometer, a “person like me” is the “most trusted source
for information about a company, and, therefore, products.” Thus, students at a particular
school are more likely to listen to and be influenced by another student who attends the same
school. With a SIGG student representative, individuals on college campuses will have a
trusted source of information on SIGG products, making them more likely to purchase a
SIGG bottle. A student liaison would also provide invaluable insight into what the students
on each campus are looking for in consumer products—a source of free market research—
that would allow SIGG to better target its college-student market.
SimplySympathetic
Description:
In the aftermath of the BPA scandal, SIGG lost consumer trust and its reputation as an
honest, sustainable company. With the loss of trust and its damaged reputation, SIGG also
lost a large number of customers. For this reason, it is necessary for SIGG to publicly
apologize to its angry consumers and to offer a trade-in program for SIGG bottles with BPA
in the liners. SIGG’s CEO, Steve Wasik, will offer a public apology on behalf of the entire
SIGG Corporation, and will promise to increase honesty and transparency with its customers.
Also, SIGG will offer a trade-in for those who purchased SIGG bottles with BPA liners. With
this trade-in offer, SIGG will donate the cost of each BPA-infected SIGG bottle to an
environmentally conscious charity, improving customer trust while simultaneously restoring
a soiled reputation.
Rationale:
With headlines such as “Take Your BPA-Tainted, Soulless SIGG Bottles Back to Major
Retailers,” in the wake of the BPA scandal, SIGG is in need of a refurbished reputation. Once
loyal consumers lost faith in the SIGG brand when it was revealed that the company was
dishonest about BPA in their bottles’ liners. When consumers lose trust in a brand, they stop
purchasing their products and writing positive reviews. Thus, it is necessary for SIGG to
publicly apologize to those consumers and attempt to rebuild the bridges that they may have
burned in the after effects of the BPA scandal. By admitting fault and being sympathetic to
their customers, SIGG can begin to restore the trust that was lost as a result of the BPA
outrage. Also, the SIGG trade-in project will allow SIGG to give back to the community that
it hurt with its dishonesty, effectively reconstructing its reputation as an honest, caring,
sustainable company.
Sources Consulted
1. "About Sigg." SIGG. Web. 25 Nov. 2009. <sigg.com>.
2. "About Us." SIGG USA. Web. 25 Nov. 2009. <mysigg.com>.
3. D'Estries, Michael. "Take Your BPA-Tainted, Soulless SIGG Bottles Back To Major
Retailers." Ecorazzi. 3 Sept. 2009. Web. 25 Nov. 2009. <ecorazzi.com>.
4. "Earth Day Network." Earth Day Network. Web. 25 Nov. 2009. <earthday.net>.
5. "Industry Statistics: Power of Word of Mouth." BazaarVoice. Sept. 2009. Web. 25
Nov. 2009. <bazaarvoice.com>.
6. Ostrow, Adam. "Half of Social Media Users Connect With Brands." Mashable. 31
Aug. 2009. Web. 25 Nov. 2009. <mashable.com>.
7. "Radio 92.9 EarthFest." Radio 92.9. Web. 25 Nov. 2009. <myradio929.com>.
8. Rochman, Bonnie. "How Green Is Your SIGG Water Bottle?" Time. CNN, 27 Oct.
2009. Web. 25 Nov. 2009. <time.com>.
9. Smith, Tom. "Study: Social Media Transforming Our Influences on What to Buy."
Mashable. 13 Oct. 2009. Web. 25 Nov. 2009. <mashable.com>.
