The bottled water market is dominated by two large companies: Danone and Nestle. But they themselves act as umbrella companies that include numerous different brands. Currently, Nestle is the largest, as it owns Perrier-Vittel SA, which is composed of a greater number of brands than Danone.But if you take brand by brand; we realize that Evian, owned by Danone, is the leading brand in the market for bottled water in over 125 countries.
So, in order to study the marketing strategy of Evian, we will first examine the mineral water market and present the position of Evian on this market and the challenges the brand faces. This study will develop a guide that will inspire a future campaign. Bottled water market segmentation: The mineral water market in France can be divided into four main types of products:
Natural Mineral Water:
These are bacteriologically safe water, sourced from groundwater issuing from either natural springs or those which have been drilled from the soil. Their composition is constant, may contain properties favorable to health, as identified by the National Academy of Medicine, owing to their mineral content, (trace elements or other constituents) and their purity as they are harvested and bottled at the source .These natural mineral water products are also protected by labels including Volvic, Perrier, Vichy Celestin, and others .
Spring water:
They are naturally potable, also of underground origin, microbiologically healthy and protected against pollution hazards. However, it is not mandatory that their mineral composition is constant, and these waters cannot claim to have a beneficial effect on health. Finally, they must meet the standards regarding potability for human consumption, eg - Evian.
Water made potable by treatment:
They must also meet the criteria for drinking water for human consumption and can be chemically treated. In contrast to natural mineral water, their origin does not matter; their composition may vary and may be made by adding gaseous carbon dioxide. Examples of such products are Dasani, Aquafina, etc.
The public water supply, i.e., tap water
This water meets the criteria of drinking water, as defined by the Ministry of Health. In the market for bottled water, one must distinguish between plain water and carbonated water. These can be naturally soft; however, their gas content is low, so they are bottled at the source, or regasified before bottling.
It also distinguishes labels:
Natural mineral water: they can provide medicinal properties.
Water source: carbon dioxide can be added.
Water table: they can be dechlorinated and aerated, and must meet all criteria for safe drinking water supply.
Customers, markets and distribution network
Bottled water caters to three main markets:
-households: individuals account for the bulk of sales through supermarkets and convenience stores; this massive consumption depends on a vital need, when consumers are no longer satisfied with tap water.
-CHR (Cafes, hotels, restaurants) accounts for 10% of sales, its evolution has little impact on aggregate demand.This consumption satisfies a social need and/or entertainment, where all beverages are substitutes.
-institutions (hospitals, schools, etc.)
Tags: bottled water market, households, cafes, hotels, restaurants, institutions, water source, natural mineral water, public water supply, spring water, Volvic, Perrier, Vichy Celestin
[...] A major problem in the distribution is the linear congestion; indeed, consumers are getting increasingly confused by the diversity of products offered, and is finding it more and more difficult to make a choice between mineral water, spring water and flavored water. It is therefore important for manufacturers and distributors to capture the attention of consumers in a very short time (average 22 seconds in the departmental store), and therefore compete to showcase their products. Space management and the number of references thus become a real issue, and the fight for the top spot on the shelves is fierce. [...]
[...] See Appendix 10 b.The evolving strategy of Evian Advertising campaigns The first ads date back to the 1880s when the company announced its decision to sell bottled water from its outlet at 32, boulevard des Italiens, Paris, and among the pharmacists and water sellers. Thus Evian Cachat was cited as the "the best water table” for the cure of ailments such as "Urinary tract infections, kidney stones, gout, liver, stomach." Eugene Oge lent his talents to design a poster promoting the merits of the resort at Evian-les-Bains. [...]
[...] Customers, markets and distribution network Bottled water caters to three main markets: households: individuals account for the bulk of sales through supermarkets and convenience stores; this massive consumption depends on a vital need, when consumers are no longer satisfied with tap water. CHR (Cafes, hotels, restaurants) accounts for 10% of sales, its evolution has little impact on aggregate demand.This consumption satisfies a social need and/or entertainment, where all beverages are substitutes. institutions (hospitals, schools, etc.) The bottled water is distributed through two major distribution channels: wholesalers: they buy the goods at the "factory price" and sell it to CHR, merchants, and sometimes individuals.But the CHR can also buy directly from the factory to avoid going through a wholesaler. [...]
[...] "Let us observe the effect of Evian on your body", and let us conclude that "drinking water that is pure and balanced in minerals every day, maintains the youthfulness of your body”. The new signature of the brand "Declared fountain of youth through your body" gives the promise of eternal life. The proof was given to us, in October with the campaign ballet of seniors'. On the music ‘Wouldn't it be Nice” by the Beach Boys, Evian offers a water ballet of octogenarians, which mirrors the baby swimmers. [...]
[...] CPrice competitiveness: The weak point of big brands The competitiveness of private label and hard-discount The price of bottled still water (6x1 pack, 5L) Crystaline (Castel) 1.08 Mountain spring water (Carrefour) 1.63 Evian (Danone) 2.04 Aquarel (Nestle) 2.04 St. Amand 2.22 Volvic (Danone) 2.58 Thonon (Castel) 2.76 Vittel (Nestle) 3.12 Contrex (Nestle) 3.18 Mount Roucous 3.24 Prices recorded on the site Ooshop (Carrefour) 28/09/2005 In the context of an uncertain economic environment (unemployment) French households are becoming more price conscious and prefer products at competitive rates. [...]
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