Perrier marketing case study
Demand Analysis The market for soft drinks (BRAS) The BRAS market is a very dynamic market where supply is frequently renewed. French sales of BRAS are constantly increasing, because in 2003 they increased by and the forecast for 2004 was As for international sales of BRAS, they rose by in volume during 2003, while household consumption grew by (including water BRAS). In 2001, global consumption of fruits and vegetables increased by and that of soft drinks by the latter representing 32% of total fluid intake.
Hot analysis: strength: Old and famous brand name Better packaging Detective Lustrously network Famous as pure & safe among consumer Good product mix Frequent quality checking Much used by corporate world Better management Give regular follow up to distributor Better sales force Sponsoring various cultural program Better visibility Good intensives to dealer. -weakness: one liter packs which accounted for 50 per cent of the company’s turnover has come down to 30 per cent. The two-liter packs, which have practically disappeared from the helves, have come down from per cent to five per cent.
The growth has come from the 500 mainland the five-liter category, which account for 1 5 per cent and 36 percent of turnover respectively. Earlier, Visible was selling at a premium of RSI. 12 for the same size.
But beginning last year, it has been selling its one- liter bottles tars. 1 5 each. Aqua Minerals attributes the Price slashing to retailer margins being on the higher side earlier. The competitive RSI. 15 price tag has been working well for the brand. In what could be a masterstroke, Aqua Minerals is testing out the possibility of mass racketing 20-liter Visible bottles for an MR.
offers. 0. That works out to RSI. 2 a liter. If the logistics, manufacturing and distribution do fall in place, it could change the face of depurative water market for keeps. Opportunities: So far, Chuan has not used the franchising route very aggressively unlike Apparel Agro Bailey which has grown very fast using this route.
He has around six franchisees in Iambi, Delhi,Achaean, Bangor, Ago and Restaurants. “We shunned this route sofas because in most areas where we had no presence, it was imperative that we did it ourselves.
Now for further expansion we can afford to use the franchisee route. Threats: will be taking the packs back and refilling them. But the packs cannot be sterilized since the material used is PET and cannot withstand high temperature. So how can he ensure purity? “Strategy to counter threats and others? We subject the bottles to chlorine washes, hot water washes and ozone washes before we refill the bottles.
The company is betting on the home segment. The reason being that filters and water purifiers also need to be cleaned periodically and still do not guarantee absolutely lean water.
In order to service this segment, the five liter packs are being pushed through the route of fat dealers (wholesale dealers) who are retailers as well as stockiest and serve as supply points from where customers can pick up the required quota. In future, consumers will be able to call the fat dealer and place orders for home delivery of the five-liter pack. The company hasps far appointed 180 such dealers. This is a high turnover, low-margin retailer who does not keep a store but serves a similar purpose with other items such as rice or data.