branding-bottled water

INTERNATIONAL MARKETINGINTERNATIONAL MARKETING FOR BOTTLED WATER IN INDIAFOR BOTTLED WATER IN INDIA

Presented by: Ayyaz Mahmood Presented by: Ayyaz Mahmood Faraz AhmadFaraz Ahmad M Ali Malik M Ali Malik M Nabeel Ismail M Nabeel Ismail H. Nisar-ul-MustfaH. Nisar-ul-Mustfa Shoaib MaqsoodShoaib Maqsood

08/04/2308/04/23 International Marketing StrategyInternational Marketing Strategy 22

CONTENTSCONTENTS

IntroductionIntroductionObjectivesObjectivesPEST AnalysisPEST AnalysisSWOT AnalysisSWOT AnalysisMarket entry strategyMarket entry strategyStrategy analysisStrategy analysisCompetitors strategyCompetitors strategyMarket segmentationMarket segmentationConclusion Conclusion RecommendationsRecommendationsReferencesReferences


COMPANY INTRODUCTIONCOMPANY INTRODUCTION

Beverage International pvt ltd Beverage International pvt ltd

Established in 1980Established in 1980

Total revenue generated in 2007 was $2.7 billionTotal revenue generated in 2007 was $2.7 billion

2008 projected revenues $3.0 billion2008 projected revenues $3.0 billion

2008 projected profit $40 millions (8.5%)2008 projected profit $40 millions (8.5%)

Total bottled water market growth is 7%Total bottled water market growth is 7%

Operation in European / Middle East MarketOperation in European / Middle East Market

Current Target Market ( INDIA)Current Target Market ( INDIA)


DEVELOPMENT OF MARKETING STRATEGY DEVELOPMENT OF MARKETING STRATEGY OF PACKAGED WATEROF PACKAGED WATER

MARKETING OBJECTIVESMARKETING OBJECTIVES

Developing marketing strategy to enter into world’s fastest growing Developing marketing strategy to enter into world’s fastest growing Indian bottled water market and establishing brand image and Indian bottled water market and establishing brand image and product quality, efficiently and profitably. product quality, efficiently and profitably.


INTRODUCTION OF INDIAN MARKETINTRODUCTION OF INDIAN MARKET

Globalisation trend in IndiaGlobalisation trend in India

Market opportunities: 40% growth annually in water marketMarket opportunities: 40% growth annually in water market

Water quality needs in IndiaWater quality needs in India

Only 4% of the world water resourcesOnly 4% of the world water resources

Total annual consumption has risen:Total annual consumption has risen:

- 1.5 billion litres to 5 billion litres between 1990-2004- 1.5 billion litres to 5 billion litres between 1990-2004

By Dr. Uday –lal-pai, investor ideas.com,posted Aug-07-06 By Dr. Uday –lal-pai, investor ideas.com,posted Aug-07-06


EXTERNAL ANALYSIS (PEST)EXTERNAL ANALYSIS (PEST)

POLITICALPOLITICAL

Democratic governmentDemocratic government

Stable and liberalStable and liberal

Asian Bottle Water Association (ABWA)Asian Bottle Water Association (ABWA)

The Bureau of Indian Standards (BIS)The Bureau of Indian Standards (BIS)

World trade organisation (WTO)World trade organisation (WTO)

16% excise duty16% excise duty

To be reduced by 10% moreTo be reduced by 10% more


EXTERNAL FACTORS CONT..EXTERNAL FACTORS CONT..

ECONOMICECONOMIC

Mixed economyMixed economy$4.02 trillion GDP$4.02 trillion GDP8% annual GDP growth8% annual GDP growthPackaged water consumption growth-10%-12% annuallyPackaged water consumption growth-10%-12% annuallyConsumption of beverages food and tobacco is 40%Consumption of beverages food and tobacco is 40%Cheap laborsCheap laborsGrowth of disposable income by 8.5%Growth of disposable income by 8.5%Annual growth of departmental stores by 24%Annual growth of departmental stores by 24%


EXTERNAL ANALYSIS CONT..EXTERNAL ANALYSIS CONT..

SOCIALSOCIAL

Safe drinking packaged waterSafe drinking packaged water

High levels of literacy and awarenessHigh levels of literacy and awareness

Environmental issueEnvironmental issue


EXTERNAL ANALYSIS CONT..EXTERNAL ANALYSIS CONT..

TECHNICALTECHNICAL

High investment on Information technologyHigh investment on Information technology

Water storage improvementWater storage improvement

Membrane technology and clean environmental technologyMembrane technology and clean environmental technology


SWOT ANALYSISSWOT ANALYSIS- INTERNAL FACTORS -- INTERNAL FACTORS -

STRENGHTSSTRENGHTS

American image American image

Packaging style optionsPackaging style options

Premium productPremium product

Differential advantageDifferential advantage

Good financial support for marketing and other activitiesGood financial support for marketing and other activities


SWOT ANALYSIS CONT..SWOT ANALYSIS CONT..

WEAKNESSESWEAKNESSES

Lack of knowledge of Indian marketLack of knowledge of Indian market

Distribution channel managementDistribution channel management

Awareness of the local trends and consumer intensionsAwareness of the local trends and consumer intensions

Size of the organizationSize of the organization



OPPORTUNITIESOPPORTUNITIES

Trade liberalism in IndiaTrade liberalism in India

Cheap labour sourceCheap labour source

Market potential due to large populationMarket potential due to large population

Tax free zone and other government concessionTax free zone and other government concession

Low investment requiredLow investment required

India’s massive economic growth (8%)India’s massive economic growth (8%)



THREATSTHREATS

CompetitionCompetition

New productsNew products

Cultural differencesCultural differences

Lack of infrastructure developmentLack of infrastructure development


ENTRY MARKETING STRATEGYENTRY MARKETING STRATEGY

OPTIONSOPTIONS

- Licensing- Licensing

- Joint venture- Joint venture

- Acquisition- Acquisition


STRATEGIC ANALYSISSTRATEGIC ANALYSIS

LICENSINGLICENSING

ADVANTAGESADVANTAGES

Ease of conversion to Ease of conversion to partnership/acquisitionpartnership/acquisition

Low risk to increase revenue Low risk to increase revenue and profitand profit

Revenues starts flowing Revenues starts flowing quicklyquickly

DISADVANTAGESDISADVANTAGES

Little control over the Little control over the licensee’s operationlicensee’s operation

Firm gives up profitFirm gives up profit

Little knowledge about Little knowledge about the micro and macro the micro and macro environmental factorsenvironmental factors


JOINT VENTUREJOINT VENTURE


Greater control over the Greater control over the marketmarketMaximum utilisation of Maximum utilisation of partner’s networkpartner’s networkBetter understanding of Better understanding of cultural requirementscultural requirementsEase of entry in establishing Ease of entry in establishing local marketlocal marketEase of business set upEase of business set upGain access to Tax Free Zone Gain access to Tax Free Zone (if within the target market)(if within the target market)


Potential disagreement Potential disagreement between the partnersbetween the partnersGreat capital riskGreat capital riskProfit have to be sharedProfit have to be shared


ACQUISITION ACQUISITION


Complete control over Complete control over operationsoperations

All profits remains with the All profits remains with the companycompany

Adapt product for local Adapt product for local requirementsrequirements


Incompatible corporate cultureIncompatible corporate culture

Over estimation of market Over estimation of market potentialpotential

Slow or poor post acquisition Slow or poor post acquisition integrationintegration

Expensive acquisition cost – Expensive acquisition cost – so greater risk involvedso greater risk involved


PRODUCT USPsPRODUCT USPs

ACTIVATE HEALTHACTIVATE HEALTH

Available in four different Available in four different sizes: 330ml, 650ml, 1ltr, 1.5ltrsizes: 330ml, 650ml, 1ltr, 1.5ltr

Available in flavoured water: Available in flavoured water: orange, lemon, Strawberry etcorange, lemon, Strawberry etc

Export qualityExport quality

Recyclable packaging (PET)Recyclable packaging (PET)


COMPETITORS STRATEGYCOMPETITORS STRATEGY

Main competitors: Bislari, Kinley, AquafinaMain competitors: Bislari, Kinley, Aquafina

Market share distributionMarket share distribution

Low production and supply costLow production and supply cost

Advertising: TV, Billboards, Advertising: TV, Billboards,

Product promotion activities: seasonal discountsProduct promotion activities: seasonal discounts

Market share than brand promotionMarket share than brand promotion


Bottled water Market Share

kinley25%

aquafena11%

bisleri40%

others24% kinley

aquafena

bisleri

others


MARKET SEGMENTATIONMARKET SEGMENTATION

Geo-demographicGeo-demographic

--Region, city size, density of area, income, occupation, educationRegion, city size, density of area, income, occupation, education

PsychographicPsychographic

- Lifestyle, economy minded, out-door enthusiasts, status seekers- Lifestyle, economy minded, out-door enthusiasts, status seekers


MARKETING MIXMARKETING MIX

Product:Product: - Premium, stylish, high tech, American brand- Premium, stylish, high tech, American brand

Price:Price:

- Skimming price strategy - Skimming price strategy

Place:Place:

- Dealership - Dealership

Promotion:Promotion:

- Extensive launch, on-going promotion (TV, internet), expert - Extensive launch, on-going promotion (TV, internet), expert opinion, collaboration with hotels, health clubsopinion, collaboration with hotels, health clubs


PromotionPromotion

Target Market: Target Market: YouthYouthEmotional AttachmentEmotional AttachmentBrand Ambassador :Brand Ambassador :Bollywood Superstar Sharukh Bollywood Superstar Sharukh KhanKhan

Promotion MixPromotion MixSchools & CollegesSchools & CollegesShopping's MallsShopping's MallsTV AdsTV AdsBillboardsBillboardsOrganising Sports & Organising Sports & Entertainments eventsEntertainments events


““TRUST IN EVERY DROP”TRUST IN EVERY DROP”


CONCLUSIONCONCLUSION

Market potentialMarket potential

Sustained growthSustained growth

Size of the marketSize of the market

Quality productQuality product

Flavoured waterFlavoured water


RECOMMENDATIONSRECOMMENDATIONS

Recommendation-1Recommendation-1

- Yes, enter the Indian market- Yes, enter the Indian market

Recommendation- 2Recommendation- 2

Market entry strategyMarket entry strategy

- joint venture with Indian partner- joint venture with Indian partner


RECOMMENDATION CONT..RECOMMENDATION CONT..

RECOMMENDATION:RECOMMENDATION:

Product Positioning StrategyProduct Positioning Strategy

- Superior American quality brand- Superior American quality brand


REFERENCESREFERENCES

Dr. Uday –lal-pai, investor ideas.com,posted Aug-07-06Dr. Uday –lal-pai, investor ideas.com,posted Aug-07-06[ 2] report; boom time ahead for bottled water market in India (ronita, torcato, [ 2] report; boom time ahead for bottled water market in India (ronita, torcato, mombai)mombai)[3] Bureau of India[3] Bureau of India[4,5] Predicted by Dr. Manmohan Krishna, in the scenario (boom time ahead for [4,5] Predicted by Dr. Manmohan Krishna, in the scenario (boom time ahead for packaged water) the Goa -based CEO of Glenmon Distillers & Vinttners (who has packaged water) the Goa -based CEO of Glenmon Distillers & Vinttners (who has worked for MNC and India’s ‘No1 and No2 Alcoholic and beverage companiesworked for MNC and India’s ‘No1 and No2 Alcoholic and beverage companiesWWW.EVIAN.CO.UK WWW.EVIAN.CO.UK Who (WORLD HEALTH ORGANIZATION)Who (WORLD HEALTH ORGANIZATION)Marketing Management & strategy by Peter Doyle.Marketing Management & strategy by Peter Doyle.Strategic Marketing Management (Planning, Implementation, Control) by RICHARD Strategic Marketing Management (Planning, Implementation, Control) by RICHARD M.SWILSONAND COLLIN GILLIGAN WITH DAVID J. PEARSON.M.SWILSONAND COLLIN GILLIGAN WITH DAVID J. PEARSON.WWW. DANONE GROUP.COMWWW. DANONE GROUP.COMErik Peterson ( resource analyst)Erik Peterson ( resource analyst)Spring (hydro-sphere) from (vikipedia), the free encyclopaediaSpring (hydro-sphere) from (vikipedia), the free encyclopaedia


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branding-bottled water

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