Branding-bottled water
Transcript of 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
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CONTENTSCONTENTS
IntroductionIntroductionObjectivesObjectivesPEST AnalysisPEST AnalysisSWOT AnalysisSWOT AnalysisMarket entry strategyMarket entry strategyStrategy analysisStrategy analysisCompetitors strategyCompetitors strategyMarket segmentationMarket segmentationConclusion Conclusion RecommendationsRecommendationsReferencesReferences
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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)
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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.
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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
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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
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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%
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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
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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
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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
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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
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SWOT ANALYSIS CONT..SWOT ANALYSIS CONT..
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%)
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SWOT ANALYSIS CONT..SWOT ANALYSIS CONT..
THREATSTHREATS
CompetitionCompetition
New productsNew products
Cultural differencesCultural differences
Lack of infrastructure developmentLack of infrastructure development
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ENTRY MARKETING STRATEGYENTRY MARKETING STRATEGY
OPTIONSOPTIONS
- Licensing- Licensing
- Joint venture- Joint venture
- Acquisition- Acquisition
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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
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JOINT VENTUREJOINT VENTURE
ADVANTAGESADVANTAGES
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)
DISADVANTAGESDISADVANTAGES
Potential disagreement Potential disagreement between the partnersbetween the partnersGreat capital riskGreat capital riskProfit have to be sharedProfit have to be shared
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ACQUISITION ACQUISITION
ADVANTAGESADVANTAGES
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
DISADVANTAGESDISADVANTAGES
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
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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)
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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
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Bottled water Market Share
kinley25%
aquafena11%
bisleri40%
others24% kinley
aquafena
bisleri
others
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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
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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
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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
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““TRUST IN EVERY DROP”TRUST IN EVERY DROP”
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CONCLUSIONCONCLUSION
Market potentialMarket potential
Sustained growthSustained growth
Size of the marketSize of the market
Quality productQuality product
Flavoured waterFlavoured water
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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
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RECOMMENDATION CONT..RECOMMENDATION CONT..
RECOMMENDATION:RECOMMENDATION:
Product Positioning StrategyProduct Positioning Strategy
- Superior American quality brand- Superior American quality brand
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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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THANK YOU FOR YOUR THANK YOU FOR YOUR
ATTENTION !ATTENTION !