• by Karlene Lukovitz  @KLmarketdaily, June 3, 2011

As all experienced marketers know, product launches don't always pan out exactly the way they were envisioned. But the unexpected outcome isn't always failure. Sometimes, it's a realization that there's actually a different and more profitable market for the product.

That's the case for Bot. Bot was launched in summer 2007 by an entrepreneurial couple who developed it because they saw a need for a different kind of kids' beverage. Specifically, as parents, they wanted an all-natural, lower-calorie but sufficiently flavorful kids' drink -- a kid-friendly alternative to juice boxes or pouches, existing (adult-oriented) low-key flavored waters, energy and sports drinks, and, of course, sugary sodas.

The clear product developed contains a small amount (6 grams) of cane sugar and has just 50 calories per 16.9-ounce bottle (its current size); added B vitamins, electrolytes and antioxidants (although it makes no "health" claims); and a "slightly sweet and crisp" taste, sums up Brian Allen, COO of Princeton, N.J.-based Bot Beverages, Inc. (Wife Cricket Allen is the company's CEO.)

Pre-launch consumer research confirmed demand for such a product. As usual with kids' products, moms were the target for marketing purposes, but Bot's original clear-plastic 12-ounce bottles supplied kid-appeal in the form of anime-reminiscent animal characters on the label, as well as its flavors.

The company was successful in gaining authorizations from key retail grocery and other mass chains with upscale customer bases throughout New England. (Whole Foods was among the first chain to carry the beverage, which is also marketed online by Amazon, in 12-bottle cases.)

While major, mass-market traditional media campaigns are neither affordable or appropriate/cost-efficient for a start-up still growing its retail presence, the company has employed key, standard beverage-category strategies, including heavy emphasis on sampling opportunities at sports and community events and in stores, Allen says. "Beverages are highly trial-oriented for good reason: We've found that nearly everyone who tries it and likes it becomes a buyer," he notes.

The unexpected twists came in a couple of forms. One was the recession, which hit soon after launch. While the product's formulation was "clearly resonating," Bot was at a disadvantage in a market where price quickly became the driving purchase-decision factor even among relatively affluent families, Allen says.

A clear plastic bottle was key in visually conveying the beverage's own clear (no food coloring) nature, but plastic is considerably more expensive than the pouches used by juice makers directly competing with Bot in the kids' market. And in addition to their manufacturing economies of scale, major brands could afford to run price promotions to drive volume during the worst of the recession. Bot's $1.49 per 12-ounce offering was going up against 10-packs of juice pouches priced below $2.

Moving to a 16.9-ounce size at the same price (and with the same packaging) didn't move the needle sufficiently. However, more research had revealed a critical insight: Bot was catching on rapidly with health-minded adults 18 to 34, who were adopting it as an alternative to existing adult flavored waters -- and were willing to pay a bit more for its differentiating attributes.

The upshot: Bot decided to relaunch as a beverage marketed specifically to this health-conscious adult demographic -- a shift that took place in this year's first quarter.

"Premium kids' CPGs is a very limited and limiting market," observes Allen. "Parents may be willing to pay a premium for kids' clothes, or for certain types of beverages consumed by their kids -- like organic milk, to avoid the hormones -- but significant opportunities are spotty, and the competition is intense. In fact, we've noticed that several other brands in this space that launched about the same time as Bot have since shut down.

"We realized that the appeal to this adult market represented a much broader opportunity," he continues. "And the beauty is that because kids are aspirational and want to drink what older people drink, and because parents recognize Bot as a good alternative for their kids, too, we're expanding via the adults but not really losing the kids' market with this new strategy."

The repositioning, of course, required new packaging. Bot hired advertising/design agency TDA_Boulder to design a new brand identity/ packaging with appeal to this targeted adult demographic. The new 16.9-ounce bottle also uses clear plastic, with a brand identity/logo that's designed to appear "modern, friendly and light," says Allen. "TDA's design is precisely what we needed to cut the cord and move decisively on this new positioning."

The design features Bot's name vertically, in all-caps, using a white-dot pattern to form the letters. Very bright primary-color backgrounds or color blocking (reflecting the flavors, which include Key Lime, Valencia Orange, Blue Plum, Mixed Berry, Meyer Lemon and Concord Grape) was used to create a strong shelf image for the product, says TDA_Boulder principal and founder Thomas Dooley.

Results: Bot has retained its existing retail accounts -- "It's the same product, in different packaging, so that hasn't been an issue," says Allen -- and while it's early in the game, all indications point to the new strategy's success, he reports.

At least for the present, Bot will continue to focus primarily on sampling and other "grassroots" marketing -- and relaunching its site to reflect its new identity and positioning. The brand has Facebook and Twitter presences, and is now exploring how to employ social media to best brand-building advantage, Allen adds.