The bottled water industry is an extremely dynamic one which has brought the players major revenues. Seeing the great potential for further profits, new companies have emerged and some of the already existent ones merged as to get better comparative advantages. Evian's main competitors are the Perrier Group, Aquafina and Dasani, and all these have engaged in marketing operations to differentiate themselves from the newly entered players and consolidate their position in the international market. The Perrier Group based their marketing campaigns onto radio announcements in order to reinforce their brand; Dasani has launched a new television advertisement featuring the Commodores and other funk stars; and Aquafina (from PepsiCo), has developed a televised campaign based on advertisements featuring celebrities (Hein, 2001).
3.4 Target Market
The target market is identified through the application of the segmentation criteria. The most commonly used such criteria include age, cultural background, economic and social status, political and religious convictions as well as any other criterion considered relevant for the product analyzed. In the particular case of the Evian water, the primary selection criteria are given by socio-cultural background, age, gender and economic status. All these reveal the primary target market for the new Evian water as being formed from high class women between the ages of 31 and 50 who desire to improve the quality of their life and health. The economic status criteria is necessary so to identify those that are willing, and more importantly, able to pay the rather higher price of Evian in comparison to other products on the market. Women are then targeted primarily because they tend to consume larger amounts of water than men do and because they are more conscious of the beneficial effects of water onto the individual's body. The age limitation is given by the belief that women younger than 30 are rarely health oriented and also, women older than 50 find it difficult to drink large amounts of water. As such, however it will address it products to a wide palette of customers, the primary market will consist of high class 30 plus women.
4. Marketing Mix
Before actually developing the marketing mix at the basis on launching the new line of Evian water, the company has to identify the features that differentiate it from the competing products. There are two main features that differentiate the new line of Evian water from competing products and which give it a sustainable comparative advantage. These refer to the oxygenated nature of the water and the biodegradable nature of the recipients. Highly oxygenated water offer the consumer larger amounts of energy and Danone has incorporated the technological developments in their operational processes as to increase the levels of oxygen in the water. Then, the biodegradable recipient is environment friendly and does not eliminate greenhouse gases that contribute to global warming.
The new line of water will be sold under the Evian brand, with focus on the benefits of drinking Evian water and the complex but natural method of extraction and bottling
The stated functionality of the water is to clinch the thirst of the consumer and help her / him stay in shape...
Conclusions and Recommendations
The Evian water is an international brand addressed to high-class consumers and promoted as offering net benefits to the health of the drinker. The new line of products includes highly oxygenated water which increases the levels of energy, packed in biodegradable bottles which are extremely environment friendly. The promotional campaign is focused on the presentation of these benefits upon the individual and the environment and these points of difference will be revealed throughout the media channels by celebrities.
The implementation of the plan has to be extremely well developed and supervised and based on the objective characteristics of the market. Initially, it will be sold onto the French and American markets, following to enter then other European as well as Asian markets. The managers at Danone will control and coordinate the operations as to ensure that they are implemented as established and support the corporation in reaching its final goals - increase in market share and profits. The managers will identify any shortages in the implementation of the strategies and will find the sources of the impediments and propose solutions to resolving them.
Due to the rather high prices of their products, Danone is able to address only a limited customer palette. The basic recommendation would be for them to diversify their products and try to reduce manufacturing costs as to be able to address the population outside the high-class. Otherwise, they risk becoming a niche industry. In addition, they should pay close attention to the strategies implemented by the competition and the changing demands and behaviors of consumers.
Danone Group 2005-2006 Annual Report, Retrieved at http://finance.danone.com/phoenix.zhtml?c=95168&p=irol-reportsAnnual2005on April 3, 2008
Hein, K., May 21, 2001, Water Competition Heats Up; Summer Awash with a Bevy of Ads, Brandweek
1988-2008, Oxygenated Water, Tools for Wellness, http://www.toolsforwellness.com/oxygenated-water.htmllast accessed on April 3, 2008
2002-2007, the Marketing Mix (the 4 P's of Marketing), Net MBA, Business Knowledge Center, http://www.netmba.com/marketing/mix/last accessed on April 4, 2008
2005, Danone Takes Hit from U.S. Water Business, Food and Drink Europe, http://www.foodanddrinkeurope.com/news/ng.asp?id=57652-danone-takes-alast accessed on April 4, 2008
2008, Benefits of Evian, Detox with Evian, http://www.detoxwithevian.co.uk/benefits_of_evian-why_evian.htmllast accessed on April 3, 2008
2008, Groupe Danone, http://www.hoovers.com/danone/--ID__41774 -- /free-co-competition.xhtmlHoovers, last accessed on April 4, 2008
2008, Official Website…
" As will be shown below, the bottled water market is increasingly competitive and consumers have a dazzling array of choices available to them. It is clear that Voss has taken this into account when developing its sophisticated packaging, some samples of which are shown in Figure ____ below. Figure ____. Representative Sampling of Voss Packaging Techniques. Source: noisedfisk.com/illustrations/vosswater.jpg, www.uncrate.com/men/images/voss-water.jpg, http://www.urbanfare.com/featuredfare/images/weeklyad/voss_water.jpg In fact, one new admirer of the Voss brand unashamedly proclaimed that even
Detergents are a necessity for all of us and we will purchase them often without much consideration to brand or other characteristics beside the quality / price report. Detergent commercials have most often made me laugh not because they were funny, but because they were rather silly, to say the least. A latest commercial I saw of Ariel presented the owner or manager of a catering business who wanted to
Family Relations as Portrayed in Commercial Ads Family relations are an important consideration in how companies interact with them. This is based on the knowledge that families form the nucleus of the society. As a result, ad developers have realized the necessity of addressing family relations in ad development. Commercial ad development with family consideration has a deep history relating back to the industrial revolution. Intuitive ads developed at the time
Bottled portable water was not a significant product in the beverage industry in the US two decades ago. The industry was dominated and controlled by such giants as Groupe Danone SA’s Evian and Nestle SA’s Perrier. By 2002, the industry was worth $3.5 billion. In 1997, Pepsi made attempts to join the bottled water market. Some of the efforts included buying a spring water company and a shot at selling
The below chart illustrates the overall amounts of sales growth that have taken place between 2004 and 2009. (Financial Info 2010) This is significant, because it shows how the underlying sales of Groupe Donone will depend upon the amounts of inflation and its impact on consumer spending. As periods of price increases, will be followed by: a severe slowdown in sales. In many ways, this highlights how the company's vulnerability