strategic marketing - evian
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Group DMKTG4040B
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Background of Evian
Established in 1789
Prestigious brand heritage with a focus on providing healthy mineral water.
Key health benefits:
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Evian – The Prestigious Water Brand
Source: www.panda.org
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Strong market potential in Hong Kong
Hong Kong listed for the first time as its average intake approached 22 gallons.
Higher demand for quality of life
Increasing no. of high-end supermarkets
Market Potentials
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HK Bottled Water Industry Analysis
Source: Taitra Global Trade Source
Import Country
Brands Price Range*(for 500 ml)
Import %
PerrierEvianVittel
San Pellegrino
HKD 10 or above 10%
Watsons Select “佳之選”
COOL清涼Vita
Wahaha 娃哈哈
HKD 5 to 6.5 90%
Evian competes in niche market!
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Enhance brand awareness of Evian as a luxury brand
To develop a strategy to help Evian, a French premium water brand, to further develop Hong Kong market, especially in following areas:
- Segmentation, Targeting, Positioning
Project Objectives
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Interview period: Mid November, 2011Target: General PublicSurvey Method: Street Interview + Online QuestionnaireNo. of respondent: 222
Respondent Composition
Methodology
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Question: “Please think of 3 luxury brand.”• Unaided question• Evoked set
Question: “Have you heard of a brand called ‘Evian’?”• Aided question
Analysis – Brand Awareness
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0
10
20
30
40
50
60
Fiji Evian Perrier San Pelligrino
Meko Volvic Vettel Crystal Geyser
Heard of the brand...
Fig. 1 Unaided question
Analysis – Brand Awareness
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Fig. 2 Aided question
Analysis – Brand Awareness
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Brand Awareness
General conclusion:Figure 1 - Only 10% of people are able to recall the brand without help
Figure 2 - Only 50% of the respondent has heard of the brand Evian, not to mention the health benefits of the water.
Sum-up – Brand Awareness
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OOH (Out-of-Home)Escalator digital signage in selected stationsOutdoor billboardAirport advertisingEye-catching advertisements
Recommendation - awareness
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Print Adshigh-end magazines, e.g. Cosmopolitan, FortuneKey messages Evian’s elegant image Product benefits of unique water source and good for health
Elegant
Health
Recommendation - awareness
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Event Sponsorship• Hong Kong Tennis Classic 2011• Central Rat Race• Charity Dinner
Recommendation - awareness
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What’s our target segment?
Question:
“How likely would you buy 500ml bottled water above HKD10?”
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Income Count
HKD10,000 or below 4%
HKD10001-20000 6.5%
HKD20001-30000 6.5%
HKD30001-40000 82.6%(17% of total respondent)HKD40001-50000
HKD50001 or above
Finding our target segment...
Step 1Extract population willing
to buy luxury water
Step 2Try to eliminate the
outliers and spot out the target segment
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Value Proposition
Target Market High income segment
Benefits Functional Natural healthy water
Symbolic Prestige
Price Range 3 times of ordinary water brands
Evian Value Proposition
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0123456
3 3.5 4 4.5 5
Perceptual map of brands
Perceived Value
Perceived Price
Why perceived value is rated lower than Perrier?What constitute to customer value?
Price-perceived value relation
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Luxury brand and Evian perception
Correlation
Available at high end places 0.20
Glamorous package 0.88
Premium price 0.37
Admired by peers 0.25
High quality 0.79
Area for improvement
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Frequency Count Table
Event Headcount
Going to cinema 56
Enjoy dinner at private club house 32
Air travel 25
Stay in a hotel 24
… ……
…. …
…. ….
How to reach our target segment?
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1. VIP room in an aircraft2. Business conference/ Seminar3. Private Club House/ restaurant
Potential Channels
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Avoid frequent price promotion in convenience store and supermarket.
500 ml Evian HKD14.9HKD9.9 (33% off)
Objective:Preserve Luxury Image of the Brand
by enforcing premium pricing
Price premium Price discount not recommended
Pricing
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Objectives:Position Evian as brand admired by every one
Opinion Leaders, such as Celebrities EndorsementCelebrities image which match with Evian brand personality
Product PlacementHong Kong Movies: plot, e.g. High end hotel scene, first-class cabin, private jets
Recommendation – Admired by peers
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Significant personality of our target segment
Mean P-value
Health conscious 4.79 0.0124
Higher price for healthy product
4.53 0.0162
SignificantP-value < 0.05
Segment personality
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TV Program introducing the essence of water and quality of Evian.
Roadshow in places where our target customers visit very often, e.g. Time Square, Hotels
Objectives:Educate on the healthy benefits of Evian water
Recommendation - Health
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AdvertisementsPrint ads: Advertorial ad: more information giving
Point of PurchaseIn-store: information booth
Advertorial Ad - EXAMPLE
Evian Target GroupHealth Conscious
Recommendation
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Evian Target GroupEnvironmental Conscious
1. Promote Evian’s environmental protection commitment2. Launch more glass bottle Evian3. Evian bottle and water refilling machine
Recommendation
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1. Promote Evian’s environmental protection commitment
An eco-friendly bottling plant certified ISO 1400198% garbage recycled and condensed by 25% for added efficiency
Use of environmental-friendly transport
r-PET plastic bottles
Recommendation
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Recommendation
Promote Evian’s environmental protection commitment
Informative booth in distribution channels Contribute a portion of the revenue to eco-friendly groups Sponsor environmental protection events
Recommendation
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Recommendation
Glass bottle Evian
100% recyclable Prestigious feeling 2 different sizes
Elegant occasionsIndividual consumption
Recommendation
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Evian bottles with water refilling machine
Recommendation
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Evian bottles with water refilling machine
Reusable water bottle with glamorous designsEnhance prestigious feelingEncourage refilling of waterMore durable, non-toxic New designs periodically to stimulate
repeated purchase
Evian water refilling machine
Bottle design reference
Recommendation
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Recommendation
Traditional Plastic Bottle Reusable Plastic Bottle Glass Bottle
Distribution
Short Run
No change Bottle: middle and high- end channels
Refilling machine: limited launch in high-end places
750ml: Group events in high-end settings
330ml:Middle and high-end district
Long Run
Convenience stores in middle and high-end districts
Refilling machine:Increase high-end channels
Product Line Pricing Segment
Low Medium High
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Enhancing Awareness
Passive Reaction- Place- Price- - Admired by Peers
Active Differentiation- Health
- - Environmental Friendly
Star
Strategic Summary
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Thank You
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AppendixTraditional Plastic Bottle Reusable Plastic Bottle Glass Bottle
Price: 500ml HKD 11-15 330ml: HKD 11 - 15
500ml: HKD 13 - 20
Refilling: 330ml: 3 - 5
500ml:
330ml:
750ml:
Pricing Strategy:
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Regression on the perception of Evian
Care about environment
Health- conscious
Parameter Estimates
Parameter Standard Variable Label DF Estimate Error t Value Pr > |t|
Intercept Intercept 1 3.30892 1.81844 1.82 0.0988 Q2_1 Q2_1 1 0.02513 0.28663 0.09 0.9319 Q2_2 Q2_2 1 0.07333 0.24575 0.30 0.7715 Q2_3 Q2_3 1 0.34306 0.28509 -1.96 0.0560 Q2_4 Q2_4 1 0.24355 0.27427 0.89 0.3954 Q2_5 Q2_5 1 0.37848 0.23747 2.61 0.0124 Q2_6 Q2_6 1 -0.21480 0.34821 -0.62 0.5511 Q2_7 Q2_7 1 0.29216 0.35505 0.82 0.4298 Q2_8 Q2_8 1 0.54678 0.21613 2.53 0.0162