INTERNATIONAL MARKETING

FOR BOTTLED WATER IN INDIA

Presented by: Ayyaz Mahmood

Faraz Ahmad
M Ali Malik
M Nabeel Ismail
H. Nisar-ul-Mustfa
Shoaib Maqsood
 CONTENTS

Introduction
Objectives
PEST Analysis
SWOT Analysis
Market entry strategy
Strategy analysis
Competitors strategy
Market segmentation
Conclusion
Recommendations
References

29/08/09 International Marketing Strategy 2

 COMPANY INTRODUCTION

Beverage International pvt ltd

Established in 1980
Total revenue generated in 2007 was $2.7 billion
2008 projected revenues $3.0 billion
2008 projected profit $40 millions (8.5%)
Total bottled water market growth is 7%
Operation in European / Middle East Market
Current Target Market ( INDIA)

29/08/09 International Marketing Strategy 3

 DEVELOPMENT OF MARKETING STRATEGY
OF PACKAGED WATER

MARKETING OBJECTIVES

Developing marketing strategy to enter into world’s fastest growing

Indian bottled water market and establishing brand image and
product quality, efficiently and profitably.

29/08/09 International Marketing Strategy 4

 INTRODUCTION OF INDIAN MARKET

Globalisation trend in India

Market opportunities: 40% growth annually in water market
Water quality needs in India
Only 4% of the world water resources
Total annual consumption has risen:

- 1.5 billion litres to 5 billion litres between 1990-2004

By Dr. Uday –lal-pai, investor ideas.com,posted Aug-07-06

29/08/09 International Marketing Strategy 5

 EXTERNAL ANALYSIS (PEST)

POLITICAL

Democratic government
Stable and liberal
Asian Bottle Water Association (ABWA)
The Bureau of Indian Standards (BIS)
World trade organisation (WTO)
16% excise duty
To be reduced by 10% more

29/08/09 International Marketing Strategy 6

 EXTERNAL FACTORS CONT..

ECONOMIC

Mixed economy
$4.02 trillion GDP
8% annual GDP growth
Packaged water consumption growth-10%-12% annually
Consumption of beverages food and tobacco is 40%
Cheap labors
Growth of disposable income by 8.5%
Annual growth of departmental stores by 24%

29/08/09 International Marketing Strategy 7

 EXTERNAL ANALYSIS CONT..

SOCIAL

Safe drinking packaged water

High levels of literacy and awareness
Environmental issue

29/08/09 International Marketing Strategy 8

 EXTERNAL ANALYSIS CONT..

TECHNICAL

High investment on Information technology

Water storage improvement
Membrane technology and clean environmental technology

29/08/09 International Marketing Strategy 9

 SWOT ANALYSIS
- INTERNAL FACTORS -

STRENGHTS

American image
Packaging style options
Premium product
Differential advantage
Good financial support for marketing and other activities

29/08/09 International Marketing Strategy 10

 SWOT ANALYSIS CONT..

WEAKNESSES

Lack of knowledge of Indian market

Distribution channel management
Awareness of the local trends and consumer intensions
Size of the organization

29/08/09 International Marketing Strategy 11

 SWOT ANALYSIS CONT..

OPPORTUNITIES

Trade liberalism in India

Cheap labour source
Market potential due to large population
Tax free zone and other government concession
Low investment required

India’s massive economic growth (8%)

29/08/09 International Marketing Strategy 12

 SWOT ANALYSIS CONT..

THREATS

Competition
New products
Cultural differences
Lack of infrastructure development

29/08/09 International Marketing Strategy 13

 ENTRY MARKETING STRATEGY

OPTIONS

- Licensing
- Joint venture
- Acquisition

29/08/09 International Marketing Strategy 14

 STRATEGIC ANALYSIS

LICENSING

ADVANTAGES
DISADVANTAGES
Ease of conversion to
partnership/acquisition Little control over the
Low risk to increase revenue licensee’s operation
and profit
Revenues starts flowing Firm gives up profit
quickly Little knowledge about
the micro and macro
environmental factors
29/08/09 International Marketing Strategy 15
 JOINT VENTURE

ADVANTAGES DISADVANTAGES

Greater control over the Potential disagreement

market between the partners
Maximum utilisation of Great capital risk
partner’s network Profit have to be shared
Better understanding of
cultural requirements
Ease of entry in establishing
local market
Ease of business set up
Gain access to Tax Free Zone
(if within the target market)

29/08/09 International Marketing Strategy 16

 ACQUISITION

ADVANTAGES DISADVANTAGES

Incompatible corporate culture

Complete control over
Over estimation of market
operations
potential
All profits remains with the
Slow or poor post acquisition
company
integration
Adapt product for local
Expensive acquisition cost –
requirements
so greater risk involved

29/08/09 International Marketing Strategy 17

 PRODUCT USPs

ACTIVATE HEALTH

Available in four different

sizes: 330ml, 650ml, 1ltr, 1.5ltr
Available in flavoured water:
orange, lemon, Strawberry etc
Export quality
Recyclable packaging (PET)

29/08/09 International Marketing Strategy 18

 COMPETITORS STRATEGY

Main competitors: Bislari, Kinley, Aquafina

Market share distribution
Low production and supply cost
Advertising: TV, Billboards,
Product promotion activities: seasonal discounts
Market share than brand promotion

29/08/09 International Marketing Strategy 19

 Bottled water Market Share

others
24% kinley kinley
25% aquafena
bisleri
bisleri aquafena others
40% 11%

29/08/09 International Marketing Strategy 20

 MARKET SEGMENTATION

Geo-demographic

-Region, city size, density of area, income, occupation, education

Psychographic

- Lifestyle, economy minded, out-door enthusiasts, status seekers

29/08/09 International Marketing Strategy 21

 MARKETING MIX

Product:
- Premium, stylish, high tech, American brand
Price:
- Skimming price strategy
Place:
- Dealership
Promotion:
- Extensive launch, on-going promotion (TV, internet), expert
opinion, collaboration with hotels, health clubs

29/08/09 International Marketing Strategy 22

 Promotion

Target Market:
Youth
Emotional Attachment
Brand Ambassador :
Bollywood Superstar Sharukh
Khan
Promotion Mix
Schools & Colleges
Shopping's Malls
TV Ads
Billboards
Organising Sports &
Entertainments events

29/08/09 International Marketing Strategy 23

 “TRUST IN EVERY DROP”

29/08/09 International Marketing Strategy 24

 CONCLUSION

Market potential
Sustained growth
Size of the market
Quality product
Flavoured water

29/08/09 International Marketing Strategy 25

 RECOMMENDATIONS

Recommendation-1

- Yes, enter the Indian market

Recommendation- 2

Market entry strategy

- joint venture with Indian partner

29/08/09 International Marketing Strategy 26

 RECOMMENDATION CONT..

RECOMMENDATION:

Product Positioning Strategy

- Superior American quality brand

29/08/09 International Marketing Strategy 27

 REFERENCES

Dr. Uday –lal-pai, investor ideas.com,posted Aug-07-06

[ 2] report; boom time ahead for bottled water market in India (ronita, torcato,
mombai)
[3] Bureau of India
[4,5] Predicted by Dr. Manmohan Krishna, in the scenario (boom time ahead for
packaged water) the Goa -based CEO of Glenmon Distillers & Vinttners (who has
worked for MNC and India’s ‘No1 and No2 Alcoholic and beverage companies
WWW.EVIAN.CO.UK
Who (WORLD HEALTH ORGANIZATION)
Marketing Management & strategy by Peter Doyle.
Strategic Marketing Management (Planning, Implementation, Control) by RICHARD
M.SWILSONAND COLLIN GILLIGAN WITH DAVID J. PEARSON.
WWW. DANONE GROUP.COM
Erik Peterson ( resource analyst)
Spring (hydro-sphere) from (vikipedia), the free encyclopaedia

29/08/09 International Marketing Strategy 28

 THANK YOU FOR YOUR
ATTENTION !

29/08/09 International Marketing Strategy 29