Royal University of Law

and Economics

Subject: Market Analysis Of

Mineral Water in Cambodia

(Evian)

Lecturer: Dr. Phea Vanna

Subject: Corporate Strategic Planning

Group: 1Class: MBM13-1B2Y2Year: 2017

Group Members

1. Kang Sreynon

2. Keo Chanpunreay

3. Kheng Viputh

4. Kit Vannatith

5. Keat Vathanak

6. Chea Sothorn

7. Chin Channarith

8. Chhum Sothea

9. Dit Somai

10. Nem Samedi

11. Tun Phany

12. Thoun Seyha

13. Pos Sokkunthea

14. Prom Maryyuthanea

15. Phourn Chhorly

16. Moulsem Chormvirak

17. Ven Kimleang

Vathanak

CONTENT

1. Introduction

2. Company Overview

3. Market Situation

4. Market Description

5. Market Segments

6. Projection of potential Market Demand

7. Projected Total Market Size

8. Estimate of Market Share

9. SWOT

10. ConclusionVathanak

1. Introduction

20 liters per person per day from a source within 1

kilometer of the household is deemed sufficient for

adequate drinking and personal hygiene.

Rural areas lag far behind cities in access to water with

more than 653 million people using an unimproved

water source or ground water.

In Siem Reap, it’s estimated that 4.6 million water

bottles are generated by the tourism industry alone.

That’s not including local consumption. That figure is

based on the average visitor stay and daily

consumption, and number of visitors per year.Vathanak

French brand

Owned by Danone Group

Entered in US market in 1978

Established in 1789

Brand line: healthy and

beauty products

2. Company Overview

Vathanak

HISTORY

Vathanak

MISSION

Provide purest water

untouched by man

To promote healthy

lifestyle

Work with local

players to protect

and restore the

wetlands resources

Reduce poverty and

improve

communities living

conditions

Vathanak

MESSAGE

1

2

3

4

“T h e F o r c e of B a l a n c e ”“T h e w a t e r y o u

d r i n k is as i m p o r t a n t as t he a i r y o u b r e a t h e ”

“T h e O r i g i n a l ”

“L i v e Y o u n g ”Vathanak

FOCUS

“Has constantly focused on continuous innovation intheir products as well as a powerful and originalcommunication to its consumers”

1908 1930’s 1950’s 1968 1980’s 1998 2007-08 2013 2016

Evian begins selling in glass

bottles

Starts selling in PVC

bottles

PurityHigh-end

positioning

Live youngBaby & me campaign

starts

TodaySeptember 10,

2016

Targeted Babies

The OriginalWater babies ad campaign

starts

HealthAlps as its theme

Live young

Roller babies campaign

starts

Vathanak

3. Market Situation ~ Brand Identity

Prism

Sothea

There are more than 30 local brands (only a few brand of spring

water, two mineral water, and two deionized water) and 9 imported

brands from Malaysia, VN and Thailand(a few of which are mineral

water and the most popular in the market is Evian).

Prices _ the bottle water can be grouped into Premium and non-

premium segment:

1. The premium segment includes the brands import from France

such as EVian, Volvic, AIX, and Luchon. The bottled sizes of

0.5Liters averages between $0.75-0.9 in supermarket(Evian is

the market leader in all supermarkets, restaurants and hotels)

1. The non-premium brands range from $ 0.11-0.35 for a 0.5Liters

(local brand for $0.125 and Evian for $0.7 in supermarket, but

in five star hotels and restaurants is sold for $3-3.5 )

3. Market Situation

Sothea

Bottle Size and Prices

# Type of water capacity Type of Bottle Price

1 330ml Plastic Bottle

2 500ml Plastic Bottle $1.40

3 750ml Plastic Bottle $2.00

4 1,000ml = 1L Plastic Bottle

5 1,500ml = 1.5L Plastic Bottle $2.30

Sothea

Type of Packaging

330ml

500ml

1,500ml

750ml

1,000ml Sreynon

Competitor’s Prices

Sreynon

Average cost of Bottles

Bottle

sizeType of Bottle

Wholesale price

(package only)

Wholesale price

(bottle water) %

Per 200

bottles

Per

bottle

Per bottle

350ml Blow molded $6 $0.03 $0.15 20

500ml Blow molded $8.5 $0.04 $0.12 34

1 L Plastic $10 $0.05 $0.10 50

1.5L Blow molded $0.10 $0.33 30

Sreynon

4. Market Description

As the survey results of Evian water is illustrated that:

How often people purchasing bottled water

- 88% buy bottles of water

- 51% of people who purchase bottled water are young (between

25-32 years old)

When do people drink water:

- 41% at work

- 26% of men at home

- 28% of women during exercise

• Perception of Evian is the high quality premium water

Sreynon

Survey Result

3) Factors considered

when purchasing water

-41% of men :Price

-49% women :Quality

4) Perceptionof Evian High Quality Premium water

1) How oftendo people purchase bottled water?

-88% buy bottles of water

-51% of people who purchase bottled

water are young (between 25-32

years old)

2) Whendo people drink water?

-41% at work

-26% of men at home

-28% of women during exercises

82 RESPONSES Ι 52% FEMALE Ι 48% MALE

Sreynon

5) Evian’spricing40% of the interviewee answered that the

best pricing is between $0.82 -$1.25

Then, who is the most

price

sensitive?

-People over 41 years old

-Surprisinlgy 22.5% of young people

between 18-24 yrs old are willing to

paymorefor quality

6) Factorswho influence the

purchase

High Quality perception both in Females

and Males

7) Threats to Evian

-38% said: cheaper bottled water

(Aquafina and Dasani).

(42% of these are people from 18-40 years

old)

-24% said :tap water

8) Evian’scompetitors-24% :Crystal Geyser

-23% : Fiji

-28% : others

Survey Result (Cont.)

Sreynon

All ages

Higher discretionary incomes

Multi-ethnic people

Healthy and authentic lifestyle Well-Informed (normally know about the product

that they are buying)

Concerns over the environmental issues

TARGET 1

TARGET 2

TargetVirak

5. Market Segments

Local consumers: inferior local and Asian brands and their main decision making factors

are availability and price. Only the upper segment of local population (Urban_ 20%, Rural

_80%) can afford higher quality bottled water and may thus be not too price sensitive (GDP

per Capita in 2015,Tab…). The key to sustainable patronage would be price competitiveness

at higher quality and constant availability market.

Country

GDP per Capita GDP Growth

$ $ PPP (%)

2014 2014

Brunei Darussalam 40,776 75,700 5.3

Cambodia 1,084 3,242 7

Indonesia 3,515 10,585 5

Lao PDR 1,708 5,162 7.5

Malaysia 10,830 24,715 6

Myanmar 1,198 .… 8.5

Philippines 2,843 6,916 6.1

Singapore 56,287 82,763 2.9

Thailand 5,561 14,661 0.7

Viet Nam 2,052 5,629 6

Virak

Country OverviewMain sources of drinking water in Cambodia (wet and dry season)

In 2014, about 51 percent of the households in Cambodia had a “safe/improved

water source” in the wet season and about 58 percent in dry season. One of

the differences between wet (49% ) and dry season (42% )is that a higher share

of the households have access to unimproved rainwater in wet season.

Virak

Cambodia population in 2014Province Capital Area (km²) Population

Banteay Meanchey Serei Saophoan 6,679 678,033

Battambang Battambang 11,702 1,036,523

Kampong Cham Kampong Cham 4,549 1,010,098

Kampong Chhnang Kampong Chhnang 5,521 472,616

Kampong Speu Chbar Mon 7,017 718,008

Kampong Thom Stung Saen 13,814 908,398

Kampot Kampot 4,873 585,110

Kandal Ta Khmau 3,568 1,265,805

Kep Kep 336 80,208

Koh Kong Khemarak Phoumin 11,160 139,722

Kratié Kratié 11,094 318,523

Mondulkiri Senmonorom 14,288 60,811

Oddar Meanchey Samraong 6,158 185,443

Pailin Pailin 803 70,482

Phnom Penh Phnom Penh 758 2,234,566

Preah Sihanouk Sihanoukville 2,537 199,902

Preah Vihear Tbeng Meanchey 13,788 170,852

Pursat Pursat 12,692 397,107

Prey Veng Prey Veng 4,883 947,357

Ratanakiri Banlung 10,782 567,459

Siem Reap Siem Reap 10,229 1,000,309

Stung Treng Stung Treng 11,092 111,734

Svay Rieng Svay Rieng 2,966 498,785

Takéo Doun Kaev 3,563 843,931

Tboung Khmom Suong 4,928 754,000

Total Population 15,255,782

Virak

Cambodia Population Growth

(2017 Update)Virak

Year Population Urban Pop (%)Urban

PopulationCountry's Share of

World Pop

2017 16,076,370 21.30% 3,430,577 0.21%

2016 15,827,241 21.10% 3,338,486 0.21%

2015 15,577,899 20.90% 3,248,723 0.21%

2010 14,363,586 19.80% 2,845,724 0.21%

Year Tourism Arrivals Changes

2016 5,011,712 4.95%

2015 4,775,231 6.1%

2014 4,502,775 7.0%

2013 4,210,165 17.5%

2012 3,584,307 24.4%

2011 2,881,862 14.9%

2010 2,508,289 16.0%

2009 2,161,577 1.7%

2008 2,125,465 1.5%

2007 2,015,128 18.5%

2006 1,700,041 19.6%

2005 1,421,615 34.7%

2004 1,055,202 50.5%

Cambodia Tourist Population

Virak

COMPETITIVEPROFILE

PURIFIED WATER

HIG

HP

RIC

ELO

WP

RIC

E

SPRING WATER

PR

ICE

SOURCE TYPES

Hard competition

involving quality (mostly focusing

on source types)

and prices

Environmental positioning

is no more an option, but

a necessity

Increasing of threats, such as

tap water and flavored water

Viputh

Porter's 5 Forces Viputh

Porter's 5 Forces Explanation

• Bargaining Power of Suppliers

Increase in the cost of Raw Material (cap cost , labeling cost, bottle

cost, carton cost)

Suppliers supply raw material to local players

As plastic bottle banned another substitute will be glass bottle

• Threat of Substitutes

Substitute are Fruit Juices, Health Drinks ,Soft Drinks

Juices like Real , Slice Mangola , Priya gold Treat, Coca Cola

Viputh

• Intensity of Rivalry Firms

Local brands are major contributing 80% of market share

Around 200 registered brands in India

• Bargaining Power of Buyers

Local brands are available in the market in the cheap price

Buyers have choice from wide variety of suppliers

Demand is more in the market but branded suppliers is less

compare to local suppliers

• Barriers to Entry / New Product

New entrants in the market like Amul “Narmada Neer”

Market is growing which attracts new entrants

Porter's 5 Forces Explanation (cont.)

SeyhaViputh

6. Projection of potential Market

Demand

Potential market demand of Evian are:

High quality water

Higher demand for quality of life

Have many different sizes

Healthy mineral water

Perfect water for baby

Premium popular brand

Product benefits of unique water source.

Kunthea

Evian14%

Fuji11%

Saint Amond7%

Vital21%

Kulen17%

Perrier6%

Oxygenizer6%

Other18%

Vannatith

7. Projected Total Market Size

2014 2015 2016

Total Consumption 39.1 43.2 49.6

Evian 2.9 3.3 4.1

39.1

43.2

49.6

2.9 3.3 4.10

10

20

30

40

50

60

Me

asu

rem

en

t: B

illio

n L

ite

r

Total Consumption Evian

Vannatith

8. Estimate of Market Share

9. SWOT

STRENGHTS

15 years of filtration through the pristine heights of the French Alps

Brand recognition.

Best quality product accepted.

WEAKNESSES

Cost of distribution is high because it only comes from one source.

(French Alps)

Highly priced products.

High costs of production.

Awareness-The customer are not aware of the stage purifying

process of Evian and the added minerals which are available.

Virak

9. SWOT (Cont.)

OPPORTUNITIES

Scarcity-The metropolitans and big cities have a scarcity of pure

drinking water which Evian can cater.

THREATS

Nearly 100 brands in this market sector.

Many new players entering market.

Competitors ability to invest.

Price sensitive customer-People focus more on low price.

Virak

10. Conclusion

Evian is the most famous still water in the French market, as it's also

in the rest of the world including Cambodia. It has a premium status

in the market, and usually is three times more expensive than other

brands of spring water in France.

It's relevant to mention that Evian, as a global brand, has an strong

esteem in its country of origin and is considered a strong local brand,

which may have helped in its success as a global brand.

Consumers in France have known Evian for many years and have

developed a close relationship with it as compared to other local

bottled water brands.

Vathanak

1. https://plasticfreecambodia.com/2017/06/14/safe-drinking-water/

2. http://www.tourismcambodia.com/travelguides/provinces/phnom-

penh/population.htm

3. http://www.worldometers.info/world-population/cambodia-population/

4. http://www.phnompenhpost.com/business/mineral-water-firm-building-brand

5. https://www.tripadvisor.com/ShowTopic-g293939-i9162-k5389728-

Bottled_water-Cambodia.html

6. http://www.evian.com/regions/

7. https://opendevelopmentcambodia.net/topics/population-and-censuses/

8. https://www.slideshare.net/lailaikit/strategic-marketing-evian

9. https://www.slideshare.net/marcelobrescia/marketing-research-evian

10.https://www.slideshare.net/yberger/evian-branding

References

QUESTIONS AND ANSWER!