Introduction
In 1898 a natural spring was discovered in the Gard department in France. This water is naturally carbonated and was quickly used by the by Perrier Group in 1906. Over the years, this drink has become a commonly consumed beverage in the market for soft drinks which is also known as the BRSA market (Boissons Rafraîchissantes sans Alcool / Refreshing Drinks without Alcohol).
The BRSA refers to beverages that have been prepared from water, sugar, CO ² and herbs; it also includes mineral water, soft drinks, fruit juices etc. This market is highly concentrated and has big brands like Coca Cola, PepsiCo and Cadbury Schweppes. To stay in this market as a strong force, one must continually come up with innovative offers to keep the customer hooked and loyal.
As they want to reach a new target segment of customers between the ages of 20 and 35, the Perrier Group has launched a new product i.e. a fluorescent colored drink made of natural mineral water and fruit.
In this paper we will examine the strategic positioning of Perrier in the BRSA market. First we will discuss the strategies used by the group and the internal audit, and then we will establish an external analysis of this market and finally, propose policy recommendations for future years.
I. Business strategy / SBU
Its business strategy depends on the Perrier Nestlé Waters since the merger of 2002.
Its business is the design and production of soft drinks.
Its SBU or Strategic Business Units are using the latest technology and satisfying the target market.
Tags: Perrier, strategic positioning of Perrier in the market, launch of Perrier Fluo
[...] • Opportunities: - Perrier is the No carbonated water drink worldwide. - Perrier has the protection and expertise of a large group since it was bought by Nestlé Waters in 1992. - The BRSA market is growing. In 2003, the sales of fruit juices and soft drinks increased by 6%. - Domestic demand is estimated to increase because of the launch of new products saw an increase of in the volume of household consumption. - Consumers have new expectations that have to be met, these include great taste, healthy products, exoticism, originality etc. [...]
[...] Doctors denounce the consumption of these drinks as unhealthy and say that they lead to obesity. Technological - Innovation is fundamental in the BRSA market, there has been a real escalation of innovations are satisfying the demands of customers. The Research and Development departments have become indispensable to the groups of the industry. Ecological The BRSA industry is subject to European regulations on packaging and recycling. This legislation requires Member States to introduce systems of return, collection and recovery of condition, import or sell packaged products are participating, financially, in the recycling of packaging. [...]
[...] ⎫ Innovation Strategy: Perrier proposes to produce at least one innovation every year to improve its products. It always encourages originality in terms of packaging, format etc. - Strategies used to launch the Perrier Fluo: ⎫ Strategy of innovation / differentiation : Sensorial Marketing for the Perrier Fluo has been used to target the 20 to 35 market segment. The marketing strategy plays strongly on the color of the drinks, tangy like pink, icy for blue or yellow for spicy. Its original packaging is phosphorescent. This differentiates it from other typical drinks of the BRSA. [...]
[...] But there are several barriers to entry in this market and the existing players hold many significant, strategic competitive advantages. In order to grow and persist in this sector, it is necessary and indispensable for Perrier to continue to maintain the excellence of some key factors such as continuous innovation, significant investments in the priority areas of research and communication. Although it is very powerful in this area, the big question is whether the group will be able to retain its position as world's number one in the sparkling water market. [...]
[...] groups share 90% of the world market). - The market for fruit juices, keeping in mind the specificities of each country's tastes and habits makes it difficult to develop a strategy. - The French consume the least amount of products from the BRSA market in all of Europe. ( 12.5 liters per person per year while the figure in Germany is 43l) - Consumers have an unfavorable attitude toward the products of BRSA and associate it with a high level of blood sugar. [...]
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