Summary: Perrier, the French carbonated mineral water brand has positioned itself as a premium brand in the mind

of the American consumers. Advertising has played a major role in this achievement. There is a sense of sophistication and elegance in the TV commercials. From casting attractive and well-groomed actors to shooting at exotic locations where only the rich spend their vacations, Perrier commercials have all thats required to be perceived as a luxury brand. The American consumers have suddenly begun to believe that tap water isnt healthy for them and they dont mind spending as much as 26 cents per glass on water. Before this, very few Americans would specially go out of their way to buy imported products from gourmet shops. The market demand for bottled water was small in comparison to the demand for liquor, beer, soft drinks and other beverages. Demand for bottled water existed only in places where the quality of tap water was bad or water was available in low quantity. The marketing strategy of Perrier in 1978 brought dramatic changes to the demand of bottled water. Perrier aimed to position itself as a premium beverage and not as bottled mineral water. Unlike before, when Perrier was consumed to give an image of superiority and was consumed at posh fine dining restaurants with lavish menus, Perrier with its new marketing techniques became an everyday product and from selling only 3.5 million bottles in 1976, it sold 200 million bottles in 1979 in US. Perrier followed a centralized distribution format through soft-drink bottlers and beer wholesalers who had better displays and were better at merchandizing. 3/4th of the distributors were replaced and Perrier sales were shifted to supermarkets and convenience stores instead of gourmet shops. This change in distribution led a decrease in price to 69 cents from 1$. Instead of being displayed with gourmet products, Perrier was displayed in the soft drinks section and had a secondary display in racks and cases elsewhere in the stores. Cent off coupon schemes, different quantity variants, and trade allowances led to better promotion. Bigger packages were introduced to promote home consumption. This was followed by large scale expansion after which Perrier was made available in 2/3rd states of US. Right advertising at the right time completely changed Perriers market positioning. They took advantage of the insight that all Americans want to appear glamorous and fashionable. Perrier advertisers understood the rising health concerns faced by the Americans and tapped on to the need of beverages consisting healthy nutrients and low calorie sweeteners. Consumers at that time were shifting to lighter beers/beverages and diet soft drinks. Perrier emerged as the leader in low calorie drinks as water has no calories and is of course the healthiest drink. This way, Perrier water was able to position itself not as an alternative to tap water, but a healthy alternative to soft drinks for which 26 cents per glass didnt seem a high price to pay. Thus we can say with the right timing and right marketing tools, Perrier managed to become one of the best selling luxury brands in USA.

Q2 To which social class(es) is Perrier appealing ? Why does your group say so be specific please. (this question allows you to dwell on your understanding of what a social class is). Please identify the social classes and their characteristics and consumption analysis in Indian and Canadian context do research and bring specifics to your group submission /discussion.

Answer: Perrier seems to appeal the upper social class. It appeals to the rich sections of the society who are more concerned about social status and relate social status to the brands they use/consume. Reasons which show Perrier targets and appeals the upper social class: High pricing in comparison to other competitors due to which only the high earning consumers can pay the premium charged by Perrier Additional benefits like healthy nutrients and low calorie nutrients

Perrier had an image of superiority i.e. an image that the consumer consuming Perrier is more rich, glamorous and sophisticated. Social Classes in Indian Context: 1. Upper Class: The upper class is the social class composed of those who are wealthy, well-born, or both. They have a luxurious standard of living and are rich either since birth and belong to influential/powerful families, or are from the newly rich category which become rich due to huge achievements. The upper class section of society has high consumption levels and high disposable income. 2. Upper Middle Class: The upper middle class consists of well-educated professionals with comfortable incomes. They too have high disposable income levels but spend consciously. They consume both luxury and standard products and aspire to be part of the upper class section of the society. 3. Lower Middle Class: The group of middle class households or individuals who have not attained the status of the upper middle class associated with the higher realms of the middle class. They have good education and steady jobs with regular incomes. This section of society is highly concerned about social acceptability and are conservative consumers i.e. spend conservatively on standard and necessary products.

4. Lower Class: Poorest section of the society consisting of unemployed individuals or individuals who are employed at the lowest levels and have very low incomes or wages. They are mostly uneducated and have irregular or insufficient earnings. They may be just above or below the poverty line. They have very less/negligible incomes and thus very low consumption levels. Their expenditure is only on basic necessities of life like food, shelter and clothing.

Social Class in Canadian Context: 1. The Upper Class: About 3-5% of Canadians fall into this class. Most of their wealth is inherited. Their children go to private schools and they exercise great power in occupational positions. One percent belongs to an upper-upper class distinguished primarily by "old money." The remaining 2-4% fall into the lowerupper class and depend more on earnings than inherited wealth. 2. The Middle Class: Roughly 40-50% of the Canadian population falls into this category. Because of its size, it has tremendous influence on patterns of Canadian culture. 3. The Working Class: This class comprises about one-third of the population and has lower incomes than the middle class and virtually no accumulated wealth. Their jobs provide less personal satisfaction. 4. The Lower Class: The remaining 20% of the population is identified as the lower class. Many are supported entirely by welfare payments, while others are among the "working poor" whose incomes are insufficient to cover necessities like food, shelter, and clothing. They typically live in less desirable neighborhoods.