Branding-bottled Water

INTERNATIONAL MARKETING FOR BOTTLED WATER IN INDIA

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

CONTENTS Introduction Objectives PEST Analysis SWOT Analysis Market entry strategy Strategy analysis Competitors strategy Market segmentation Conclusion Recommendations References

29/08/09

International Marketing Strategy

2

COMPANY INTRODUCTION Beverage International pvt ltd Established in 1980 Total revenue generated in 2007 was $2.7 billion 2008 projected revenues $3.0 billion 2008 projected profit $40 millions (8.5%) Total bottled water market growth is 7% Operation in European / Middle East Market Current Target Market ( INDIA)

29/08/09

International Marketing Strategy

3

DEVELOPMENT OF MARKETING STRATEGY OF PACKAGED WATER

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

29/08/09

International Marketing Strategy

4

INTRODUCTION OF INDIAN MARKET Globalisation trend in India Market opportunities: 40% growth annually in water market Water quality needs in India Only 4% of the world water resources Total annual consumption has risen: - 1.5 billion litres to 5 billion litres between 1990-2004

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

29/08/09

International Marketing Strategy

5

EXTERNAL ANALYSIS (PEST) POLITICAL Democratic government Stable and liberal Asian Bottle Water Association (ABWA) The Bureau of Indian Standards (BIS) World trade organisation (WTO) 16% excise duty To be reduced by 10% more

29/08/09

International Marketing Strategy

6

EXTERNAL FACTORS CONT.. ECONOMIC Mixed economy $4.02 trillion GDP 8% annual GDP growth Packaged water consumption growth-10%-12% annually Consumption of beverages food and tobacco is 40% Cheap labors Growth of disposable income by 8.5% Annual growth of departmental stores by 24%

29/08/09

International Marketing Strategy

7

EXTERNAL ANALYSIS CONT.. SOCIAL Safe drinking packaged water High levels of literacy and awareness Environmental issue

29/08/09

International Marketing Strategy

8

EXTERNAL ANALYSIS CONT.. TECHNICAL High investment on Information technology Water storage improvement Membrane technology and clean environmental technology

29/08/09

International Marketing Strategy

9

SWOT ANALYSIS - INTERNAL FACTORS -

STRENGHTS American image Packaging style options Premium product Differential advantage Good financial support for marketing and other activities

29/08/09

International Marketing Strategy

10

SWOT ANALYSIS CONT.. WEAKNESSES Lack of knowledge of Indian market Distribution channel management Awareness of the local trends and consumer intensions Size of the organization

29/08/09

International Marketing Strategy

11

SWOT ANALYSIS CONT.. OPPORTUNITIES Trade liberalism in India Cheap labour source Market potential due to large population Tax free zone and other government concession Low investment required India’s massive economic growth (8%)

29/08/09

International Marketing Strategy

12

SWOT ANALYSIS CONT.. THREATS Competition New products Cultural differences Lack of infrastructure development

29/08/09

International Marketing Strategy

13

ENTRY MARKETING STRATEGY

OPTIONS - Licensing - Joint venture - Acquisition

29/08/09

International Marketing Strategy

14

STRATEGIC ANALYSIS LICENSING ADVANTAGES

DISADVANTAGES

Ease of conversion to partnership/acquisition Low risk to increase revenue and profit Revenues starts flowing quickly

29/08/09

Little control over the licensee’s operation Firm gives up profit Little knowledge about the micro and macro environmental factors

International Marketing Strategy

15

JOINT VENTURE ADVANTAGES

DISADVANTAGES

Greater control over the market Maximum utilisation of partner’s network Better understanding of cultural requirements Ease of entry in establishing local market Ease of business set up Gain access to Tax Free Zone (if within the target market)

Potential disagreement between the partners Great capital risk Profit have to be shared

29/08/09

International Marketing Strategy

16

ACQUISITION DISADVANTAGES

ADVANTAGES Complete control over operations All profits remains with the company Adapt product for local requirements

29/08/09

Incompatible corporate culture Over estimation of market potential Slow or poor post acquisition integration Expensive acquisition cost – so greater risk involved

International Marketing Strategy

17

PRODUCT USPs ACTIVATE HEALTH Available in four different sizes: 330ml, 650ml, 1ltr, 1.5ltr Available in flavoured water: orange, lemon, Strawberry etc Export quality Recyclable packaging (PET)

29/08/09

International Marketing Strategy

18

COMPETITORS STRATEGY

Main competitors: Bislari, Kinley, Aquafina Market share distribution Low production and supply cost Advertising: TV, Billboards, Product promotion activities: seasonal discounts Market share than brand promotion

29/08/09

International Marketing Strategy

19

Bottled water Market Share

others 24%

kinley 25%

kinley aquafena bisleri

bisleri 40%

29/08/09

aquafena 11%

International Marketing Strategy

others

20

MARKET SEGMENTATION Geo-demographic -Region, city size, density of area, income, occupation, education Psychographic - Lifestyle, economy minded, out-door enthusiasts, status seekers

29/08/09

International Marketing Strategy

21

MARKETING MIX Product: - Premium, stylish, high tech,

American brand

Price: - Skimming price strategy

Place: - Dealership

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

29/08/09

International Marketing Strategy

22

Promotion Target Market: Youth Emotional Attachment Brand Ambassador : Bollywood Superstar Sharukh Khan Promotion Mix Schools & Colleges Shopping's Malls TV Ads Billboards Organising Sports & Entertainments events 29/08/09

International Marketing Strategy

23

“TRUST IN EVERY DROP”

29/08/09

International Marketing Strategy

24

CONCLUSION Market potential Sustained growth Size of the market Quality product Flavoured water

29/08/09

International Marketing Strategy

25

RECOMMENDATIONS Recommendation-1 - Yes, enter the Indian market

Recommendation- 2 Market entry strategy - joint venture with Indian partner

29/08/09

International Marketing Strategy

26

RECOMMENDATION CONT..

RECOMMENDATION: Product Positioning Strategy - Superior American quality brand

29/08/09

International Marketing Strategy

27

REFERENCES Dr. Uday –lal-pai, investor ideas.com,posted Aug-07-06 [ 2] report; boom time ahead for bottled water market in India (ronita, torcato, mombai) [3] Bureau of India [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 worked for MNC and India’s ‘No1 and No2 Alcoholic and beverage companies WWW.EVIAN.CO.UK Who (WORLD HEALTH ORGANIZATION) Marketing Management & strategy by Peter Doyle. Strategic Marketing Management (Planning, Implementation, Control) by RICHARD M.SWILSONAND COLLIN GILLIGAN WITH DAVID J. PEARSON. WWW. DANONE GROUP.COM Erik Peterson ( resource analyst) Spring (hydro-sphere) from (vikipedia), the free encyclopaedia

29/08/09

International Marketing Strategy

28

THANK YOU FOR YOUR ATTENTION !

29/08/09

International Marketing Strategy

29