strategic marketing - evian

Group DMKTG4040B

Background of Evian

Established in 1789

Prestigious brand heritage with a focus on providing healthy mineral water.

Key health benefits:

Evian – The Prestigious Water Brand

Source: www.panda.org

Strong market potential in Hong Kong

Hong Kong listed for the first time as its average intake approached 22 gallons.

Higher demand for quality of life

Increasing no. of high-end supermarkets

Market Potentials

HK Bottled Water Industry Analysis

Source: Taitra Global Trade Source

Import Country

Brands Price Range*(for 500 ml)

Import %

PerrierEvianVittel

San Pellegrino

HKD 10 or above 10%

Watsons Select “佳之選”

COOL清涼Vita

Wahaha 娃哈哈

HKD 5 to 6.5 90%

Evian competes in niche market!

Enhance brand awareness of Evian as a luxury brand

To develop a strategy to help Evian, a French premium water brand, to further develop Hong Kong market, especially in following areas:

- Segmentation, Targeting, Positioning

Project Objectives

Interview period: Mid November, 2011Target: General PublicSurvey Method: Street Interview + Online QuestionnaireNo. of respondent: 222

Respondent Composition

Methodology

Question: “Please think of 3 luxury brand.”• Unaided question• Evoked set

Question: “Have you heard of a brand called ‘Evian’?”• Aided question

Analysis – Brand Awareness

0

10

20

30

40

50

60

Fiji Evian Perrier San Pelligrino

Meko Volvic Vettel Crystal Geyser

Heard of the brand...

Fig. 1 Unaided question

Analysis – Brand Awareness

Fig. 2 Aided question

Analysis – Brand Awareness

Brand Awareness

General conclusion:Figure 1 - Only 10% of people are able to recall the brand without help

Figure 2 - Only 50% of the respondent has heard of the brand Evian, not to mention the health benefits of the water.

Sum-up – Brand Awareness

OOH (Out-of-Home)Escalator digital signage in selected stationsOutdoor billboardAirport advertisingEye-catching advertisements

Recommendation - awareness

Print Adshigh-end magazines, e.g. Cosmopolitan, FortuneKey messages Evian’s elegant image Product benefits of unique water source and good for health

Elegant

Health

Recommendation - awareness

Event Sponsorship• Hong Kong Tennis Classic 2011• Central Rat Race• Charity Dinner

Recommendation - awareness

What’s our target segment?

Question:

“How likely would you buy 500ml bottled water above HKD10?”

Income Count

HKD10,000 or below 4%

HKD10001-20000 6.5%

HKD20001-30000 6.5%

HKD30001-40000 82.6%(17% of total respondent)HKD40001-50000

HKD50001 or above

Finding our target segment...

Step 1Extract population willing

to buy luxury water

Step 2Try to eliminate the

outliers and spot out the target segment

Value Proposition

Target Market High income segment

Benefits Functional Natural healthy water

Symbolic Prestige

Price Range 3 times of ordinary water brands

Evian Value Proposition

0123456

3 3.5 4 4.5 5

Perceptual map of brands

Perceived Value

Perceived Price

Why perceived value is rated lower than Perrier?What constitute to customer value?

Price-perceived value relation

Luxury brand and Evian perception

Correlation

Available at high end places 0.20

Glamorous package 0.88

Premium price 0.37

Admired by peers 0.25

High quality 0.79

Area for improvement

Frequency Count Table

Event Headcount

Going to cinema 56

Enjoy dinner at private club house 32

Air travel 25

Stay in a hotel 24

… ……

…. …

…. ….

How to reach our target segment?

1. VIP room in an aircraft2. Business conference/ Seminar3. Private Club House/ restaurant

Potential Channels

Avoid frequent price promotion in convenience store and supermarket.

500 ml Evian HKD14.9HKD9.9 (33% off)

Objective:Preserve Luxury Image of the Brand

by enforcing premium pricing

Price premium Price discount not recommended

Pricing

Objectives:Position Evian as brand admired by every one

Opinion Leaders, such as Celebrities EndorsementCelebrities image which match with Evian brand personality

Product PlacementHong Kong Movies: plot, e.g. High end hotel scene, first-class cabin, private jets

Recommendation – Admired by peers

Significant personality of our target segment

Mean P-value

Health conscious 4.79 0.0124

Higher price for healthy product

4.53 0.0162

SignificantP-value < 0.05

Segment personality

TV Program introducing the essence of water and quality of Evian.

Roadshow in places where our target customers visit very often, e.g. Time Square, Hotels

Objectives:Educate on the healthy benefits of Evian water

Recommendation - Health

AdvertisementsPrint ads: Advertorial ad: more information giving

Point of PurchaseIn-store: information booth

Advertorial Ad - EXAMPLE

Evian Target GroupHealth Conscious

Recommendation

Evian Target GroupEnvironmental Conscious

1. Promote Evian’s environmental protection commitment2. Launch more glass bottle Evian3. Evian bottle and water refilling machine

Recommendation

1. Promote Evian’s environmental protection commitment

An eco-friendly bottling plant certified ISO 1400198% garbage recycled and condensed by 25% for added efficiency

Use of environmental-friendly transport

r-PET plastic bottles

Recommendation

Recommendation

Promote Evian’s environmental protection commitment

Informative booth in distribution channels Contribute a portion of the revenue to eco-friendly groups Sponsor environmental protection events

Recommendation

Recommendation

Glass bottle Evian

100% recyclable Prestigious feeling 2 different sizes

Elegant occasionsIndividual consumption

Recommendation

Evian bottles with water refilling machine

Recommendation

Evian bottles with water refilling machine

Reusable water bottle with glamorous designsEnhance prestigious feelingEncourage refilling of waterMore durable, non-toxic New designs periodically to stimulate

repeated purchase

Evian water refilling machine

Bottle design reference

Recommendation

Recommendation

Traditional Plastic Bottle Reusable Plastic Bottle Glass Bottle

Distribution

Short Run

No change Bottle: middle and high- end channels

Refilling machine: limited launch in high-end places

750ml: Group events in high-end settings

330ml:Middle and high-end district

Long Run

Convenience stores in middle and high-end districts

Refilling machine:Increase high-end channels

Product Line Pricing Segment

Low Medium High

Enhancing Awareness

Passive Reaction- Place- Price- - Admired by Peers

Active Differentiation- Health

- - Environmental Friendly

Star

Strategic Summary

Thank You

AppendixTraditional Plastic Bottle Reusable Plastic Bottle Glass Bottle

Price: 500ml HKD 11-15 330ml: HKD 11 - 15

500ml: HKD 13 - 20

Refilling: 330ml: 3 - 5

500ml:

330ml:

750ml:

Pricing Strategy:

Regression on the perception of Evian

Care about environment

Health- conscious

Parameter Estimates

Parameter Standard Variable Label DF Estimate Error t Value Pr > |t|

Intercept Intercept 1 3.30892 1.81844 1.82 0.0988 Q2_1 Q2_1 1 0.02513 0.28663 0.09 0.9319 Q2_2 Q2_2 1 0.07333 0.24575 0.30 0.7715 Q2_3 Q2_3 1 0.34306 0.28509 -1.96 0.0560 Q2_4 Q2_4 1 0.24355 0.27427 0.89 0.3954 Q2_5 Q2_5 1 0.37848 0.23747 2.61 0.0124 Q2_6 Q2_6 1 -0.21480 0.34821 -0.62 0.5511 Q2_7 Q2_7 1 0.29216 0.35505 0.82 0.4298 Q2_8 Q2_8 1 0.54678 0.21613 2.53 0.0162