strategic marketing - evian
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TRANSCRIPT
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