nestlé waters
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Marion DUCLAUX - Adrien DAMEZ - Jules CLEMENT - Laurent CHADIAN - Vincent DI LEONE
Customers, Value and ProfitabilityGabrielle Pinchaud
NESTLÉ WATERSCASE STUDY N°1
J’suis pas chaud
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MARKETKEY FIGURES
MARKET VOLUME // MARKET VALUE // COMPETITION // PORTER’S 5 FORCES SCHEMA
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FRENCH BOTTLED WATER MARKETMARKET VOLUME (2010)
8 401
8 143
7 804
7 588
7 396 -3,10%
-4,20%
-2,80%
-2,50%
-5,00%!
-4,00%!
-3,00%!
-2,00%!
-1,00%!
0,00%!
6 800!
7 000!
7 200!
7 400!
7 600!
7 800!
8 000!
8 200!
8 400!
8 600!
2006 2007 2008 2009 2010
MILLION LITERS! Growth!
Million liters Growth
Source :
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FRENCH BOTTLED WATER MARKETMARKET VALUE (2010)
3 850
3 787
3 698
3 645 3 597 -1,60%
-2,30%
-1,40% -1,30%
-3,00%!
-2,00%!
-1,00%!
0,00%!
3 450!
3 500!
3 550!
3 600!
3 650!
3 700!
3 750!
3 800!
3 850!
3 900!
2006 2007 2008 2009 2010
Turnover! Growth!
Million euros Growth
Source :
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FRENCH BOTTLED WATER MARKETCOMPETION
38,10%
28,80%
24,50%
8,60% Others
Source :
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PORTER’S 5 FORCES SCHEMANESTLÉ WATERS
Potential entrants
Substitutes
BuyersSuppliers FRENCH BOTTLED WATERS MARKET
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High entrance barriers
•High investment required•A mature market•A necessary «price» positioning•Importance of R&D
Low risk
New brands
A new brand or a new takedown that directly
competes with products that are positioned on the same
target
Moderate risk
Potential entrants
BuyersSuppliers FRENCH BOTTLED WATERS MARKET
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Potential entrants
Substitutes
Suppliers FRENCH BOTTLED WATERS MARKET
A very low negotiation power
(Purifying agents, plastic or glass bottles suppliers)
• Small size of suppliers (tough negotiation with food & beverage giants like Nestlé)• Maybe on product quality ?
Low risk
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Tap water :
• Not the same use• But in many regions, tap water is as good as bottled water
High risk
Substitutes
BuyersSuppliers FRENCH BOTTLED WATERS MARKET
Other beverages :
• Sodas/Juices are becoming more and more «healthy» oriented.
Low risk
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Distributors
• Bottled waters producers have to negotiate with main distributors which are fighting to lower the prices
Potential entrants
Substitutes
BuyersFRENCH BOTTLED WATERS MARKET
Consumers
•Consumers have a large choice available•Importance on differenciation•Customer loyalty is a key point
FRENCH BOTTLED WATERS MARKET
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FRENCH BOTTLED WATERS MARKET
High Internal competition
IMPORTANT FIXED COSTS
MATURE MARKET
LOW PRODUCT DIFFERENCIATION
INDUSTRIAL GIANTS
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SWOT
Strengths Weaknesses
• Market leader (World & France)• Well developed quality process• Strong Research & Development • Fast moving consumer goods•
• Products are more expensive than competitors products• Substitute products (tap water)• No “star” product •
Opportunities Threats
• Buyout of small brands• Creation of new brands• Innovation of products• Mature and stable market •
• High price of products • Development of store brands and first price products• High level of competition• Innovation of competitors• Development of quality norms •
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NESTLÉ WATERSKEY POINTS
KEY FACTS // GLOBAL STRATEGY // COMEPETITIVE POSITIONING // SEGMENTATION // MAPPING
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NESTLE WATERS IN A FEW WORDS
LEADER on the French market
14 WATER BRANDS in France, 67 brands worldwide
33% market share in France (value)
1,6 bn liters sold in 2010, representing €6,4 bn
-20%A sustainable policy : non sustainable activitiesby 2012.
(2010)lundi 21 novembre 2011
-20%A sustainable policy : non sustainable activitiesby 2012.
packaging
-19%Nestlé Waters has reduced packaging weight per litre produced by 19% between 2005 and 2010
energy
-22%
Nestlé Waters has reduced energy consumption per litre produced by 22% in its factories between 2005 and 2010.
water
-34%
With 0.65 L additionnal water used to produce one liter in 2010, Nestlé Waters has reduced its water use ratio by 34%.
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NESTLÉ WATERS COMPETITIVE POSITIONING
1 2 3 4 5
MARKETING • Range!• Market share!
PRODUCTION • Productivity!• Capacity!• Localization!
R&D • Budget!• Potential!
FINANCE • Range!• Market share!
HUMAN RESSOURCES • Range!
low high
Analyse based on consumer value, know-how, ressources required at each step of the conception – manufacturing – distribution process.
Key Success Factors Nestlé Waters
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DebtsFinancial Capacity
Internal organization
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PRODUCT SEGMENTATION
Still water where Nestlé Water is market leader
Sparkling water Nestlé Water is also leader on this market
Aromatized water created in 1985
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KEY FIGURES // POSITIONING // PRODUCT // PRICE // PLACEMENT // PROMOTION
BRANDING STRATEGY
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KEY FIGURES
€ 407 millions2007 turnover :
6,55% market share within Nestlé Waters
Present in 125 countries
25% on the French sparkling water market
#1 International bottled sparkling water brand
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SEGMENTATION
FlavouredSparkling water
Mineral sparkling water Spring sparkling water
Sparkling water
95,81%4,19%
88,58% 7,23%
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2010, in volume
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POSITIONINGHealth
On table
Pleasure
Beauty
Beneficial
Eat well
PleasureLocal
Nature
Legend
Vitality
Drug
Origin
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PRODUCTConsumer experience
#1 hearing
«pshiiiit»
#2 color
green
#3 shape
sexy design
#4 taste
gaz & bubbles
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PACKAGING
Perrier nature
Glass : 75 cl, 33 cl and 20 cl
Plastic : 50 cl and 1 L
Can : 33 cl
Flavoured Perrier
Plastic : 50 cl,
Eau de Perrier
Glass : 75 cl, 1 L Plastic : 1 L
Subituuuudine
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PRICE
0,77€0,70€0,70€0,53€0,50€0,44€0,39€
Higher prices in SuperMarkets than HyperMarkets0.15€ / 0.20€ of difference
SUBIRE
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DISTRIBUTIONRETAIL DISTRIBUTION
All kinds of bottles are present on store
Good positioning (eyes and hands level)
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DISTRIBUTION CATERING TRADE NETWORK
the «carafe»High competition with
50%Water represents of non alcoholic sales in restaurants
Eau de Perrier (1 L & 50 cl) is the 4th sold water
Other ways of distribution are : Automatic distributors
Bakeries...
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COMMUNICATION
TARGET : 18-35 ANS
• Advisors • Active audience on the website
GOALS
•Reinforce the notoriety•Make the target younger•To win new customers who look for new pleasure without sugar excess•Develop the link the brand and the customers
STRATEGY
•Originality and conviviality •Become a « pleasure source » instead of being a healthy water as their competitors
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COMMUNICATION
Medias
• TV• Internet : e-mailing• Club Perrier
Non media
• Touch point advertising in Catering Trade Network• Sponsoring : Rolland Garros • Promotionnal products• Flyers
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COMMUNICATION
Brand values
• Impertinence & humorous• Social • Sensations & Emotions • Natural > Classic • Sparkling > Pleasure
Various images of the brand :
• Perrier Forever (history & origins)• Perrier Lifestyle (taste & quality)• Perrier Re-Source (energy & dynamic : "L'air, l'eau, la vie…")• Alternative (daring & cutting-edge : "Perrier c'est fou")
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