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Strategic Marketing - Evian

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Strategic Marketing - Evian

  1. 1. Group D MKTG4040B
  2. 2. Established in 1789 Prestigious brand heritage with a focus on providing healthy mineral water. Key health benefits:
  3. 3. Source: www.panda.org
  4. 4. 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
  5. 5. Source: Taitra Global Trade Source Import Country Brands Price Range *(for 500 ml) Import % Perrier Evian Vittel 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!
  6. 6. 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
  7. 7. Interview period: Mid November, 2011 Target: General Public Survey Method: Street Interview + Online Questionnaire No. of respondent: 222 Respondent Composition
  8. 8. Question: “Please think of 3 luxury brand.” • Unaided question • Evoked set Question: “Have you heard of a brand called ‘Evian’?” • Aided question
  9. 9. 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
  10. 10. Fig. 2 Aided question
  11. 11. 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.
  12. 12. OOH (Out-of-Home) Escalator digital signage in selected stations Outdoor billboard Airport advertising Eye-catching advertisements
  13. 13. Print Ads high-end magazines, e.g. Cosmopolitan, Fortune Key messages Evian’s elegant image Product benefits of unique water source and good for health Elegant Health
  14. 14. Event Sponsorship • Hong Kong Tennis Classic 2011 • Central Rat Race • Charity Dinner
  15. 15. What’s our target segment? Question: “How likely would you buy 500ml bottled water above HKD10?”
  16. 16. 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 Step 1 Extract population willing to buy luxury water Step 2 Try to eliminate the outliers and spot out the target segment
  17. 17. Value Proposition Target Market High income segment Benefits Functional Natural healthy water Symbolic Prestige Price Range 3 times of ordinary water brands
  18. 18. 0 1 2 3 4 5 6 3 3.5 4 4.5 5 Perceptualmap of brands Perceived Value Perceived Price Why perceived value is rated lower than Perrier? What constitute to customer value?
  19. 19. 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
  20. 20. Frequency Count Table Event Headcount Going to cinema 56 Enjoy dinner at private club house 32 Air travel 25 Stay in a hotel 24 … …… …. … …. ….
  21. 21. 1. VIP room in an aircraft 2. Business conference/ Seminar 3. Private Club House/ restaurant
  22. 22. 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
  23. 23. Objectives: Position Evian as brand admired by every one Opinion Leaders, such as Celebrities Endorsement Celebrities image which match with Evian brand personality Product Placement Hong Kong Movies: plot, e.g. High end hotel scene, first- class cabin, private jets
  24. 24. Significant personality of our target segment Mean P-value Health conscious 4.79 0.0124 Higher price for healthy product 4.53 0.0162 Significant P-value < 0.05
  25. 25. 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
  26. 26. Advertisements Print ads: Advertorial ad: more information giving Point of Purchase In-store: information booth Advertorial Ad - EXAMPLE Evian Target Group Health Conscious
  27. 27. Evian Target Group Environmental Conscious 1. Promote Evian’s environmental protection commitment 2. Launch more glass bottle Evian 3. Evian bottle and water refilling machine
  28. 28. 1. Promote Evian’s environmental protection commitment An eco-friendly bottling plant certified ISO 14001 98% garbage recycled and condensed by 25% for added efficiency Use of environmental-friendly transport r-PET plastic bottles
  29. 29. 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
  30. 30. Recommendation Glass bottle Evian  100% recyclable  Prestigious feeling  2 different sizes Elegant occasions Individual consumption
  31. 31. Evian bottles with water refilling machine
  32. 32. Evian bottles with water refilling machine Reusable water bottle with glamorous designs Enhance prestigious feeling Encourage refilling of water More durable, non-toxic  New designs periodically to stimulate repeated purchase Evian water refilling machine Bottle design reference
  33. 33. 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
  34. 34. Enhancing Awareness Passive Reaction -Place -Price -- Admired by Peers Active Differentiation -Health -- Environmental Friendly Star
  35. 35. Thank You
  36. 36. Appendix Traditional 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:
  37. 37. 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

Notas do Editor

  • Add matrix
  • Only for target segment
  • NOT SKIMMING!
  • Respond to what attributes? “Admired by peers”?
  • Picture: advertorial ad
  • Traditional plastic bottle no change: (hopefully can increase sales after the awareness enhancing programme)
    Water refilling machine: , e.g. commercial building, gym and yoga, HKCEC(brain-storm idea: cooperate with gym company, bottle for new members)
    In the long run, release seasonal designs for bottles
    High-end settings: restaurants, hotel, business conference

  • Christmas tree model
  • Christmas tree model

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