Tuesday, November 6, 2012

Touch Points and Universe

Traditionally in France people drink a lot of bottled water including sparkling mineral water, so the water business is big here. Generally the market of sparkling water is concentrated among the three main players (Danone, Nestle, Roxane), where each company owns several water brands, plus private labels. There is a big competition between the key players for the market share and sales volumes. Main sales channels of sparkling water are hypermarkets, restaurants and bars, catering facilities, food and drink machines, night clubs.




The main categories of consumers are individuals and families. The frequency of purchase of sparkling water in comparison with other products is high: a 0,5 liter bottle of water can be purchased several times a day by certain individuals, whereas for family/household use the frequency of purchase is lower but the purchase is bigger in terms of volume (for example, a family buys several packages of 6 big bottles for weekly usage).





 In order to differentiate their products on the market companies-producers highly rely on branding. After all, water is water. So in order to sell it, the companies really have to suggest something special and coherent with customers’ expectations in terms of brand image and values. Generally speaking, marketing plays the key role in sparkling water sales. Companies-producers allocate big budgets for advertising, sales promotion, cause-related marketing etc. Advertising channels are diverse and include broadcast, outdoor, print, digital and point-of-sale promotion.







In terms of packaging, companies suggest different volumes of plastic and glass bottles as well as metal cans. Innovation of product portfolio is also a key element for success. This is why companies come up with new product lines, for example water with different flavors (lemon, lime, grapefruit etc.) or with different levels of carbonation.

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