Analysis Industry/Market Highly fragmented Growth market Functional , flavoured water growth Carbon footprint environmental issues (environmentally

friendly packing ) A heightened emphasis on healthy lifestyles and improved consumer awareness of the need for proper hydration led many consumers to shift traditional beverage preferences toward bottled water. Opportunities
Manufacturers are aligning themselves with the beauty industry and developing products to aid weight control, skin health, and wellbeing. A close link between hydration and beauty is being promoted. -New packaging solutions will form a major part of brand extension activity as manufacturers reach new markets with more convenient packaging formats. -New packaging solutions will form a major part of brand extension activity as manufacturers reach new markets with more convenient packaging formats.

Company Competition

Target Market Brand Positioning Product

Price Promotion Distribution

Established players, multinationals dominate the bottled water market and the premium bottled water market. Coca cola , Pepsi , DANONE and Nestl Luxury VOSS ultra-premium water in an elegant bottle Super premium Artesian water with a designer bottle refreshing and beautiful Voss Glass 375, 800 ml on premise Voss Sliver PET Hotel, mini bar 220, 500 ml Voss Red PET 1000, 500 On premise $10 Off premise $3 High profile celebrity driven events, no sponsorships Exclusive Distribution 3 Tier Importer - > Distributor -> clients On Premise Off Premise limited 2000 accounts

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Product positioning map (Kotler, 2009, p. 581)

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Competitor Analysis

Single segment concentration uper Premium 5 5 5 Premium Value



Voss Glass Voss liver Voss Red

 

Selective Specialisation uper Premium 5 5 5 5 5 5 5 5 Premium Value



Voss Glass Voss liver Voss Red Voss Red Multipack Voss En anced


Problem: Options: Risks: Brand is damaged Offering is unsuccessful perceived as high priced

trategy: Create a ne luxury brand t at is an accessible super premium middle market consumer o
  

Target Apparitional, trading ups for ne luxury trade up.

Initiatives:


Distribution Product

ants to

More on-premise including mid tear En anced versions

ignificantly increase offpremise locations Packaging extensions

258 kottler Position t e brand vertically eparate t e premium and value space by using a value entry for t e different products and t e markets. Develop a ne brand se a sub-brand se endorsed brand 258 261 kotler
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Evaluation category:205 competitive positing. Product Characteristics: engaging, affordable and value driven. Marketing Strategy: Product benefits: Ladder of POD Emotional How the product engages the consumer emotionally Functional How the product performs Tec nical Differences in features design or materials
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Trading up page 71

Individual style Questing : Connoisseur

Create clarity by simplifying t e c oice Is t e line extension revelevant enoug to support t e market position? Does t e extenstion reporesents t e attributes and t e segment
% % % % % % % %

Devloping the product

reating cuses of auhncity adnd specaillness

Target Market Brand Positioning Product Price Promotion Distribution

Seek higher price points and , extend the price range and the positing of the brand C annel design s ould be in congruence it t e distribution and product strategy Reduce t e vertical competition in t e c annel
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Essenatial and afflroabel luxury egmentation of t e affluent market

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New affluent generation -> products for mass affluent market Risks/Characteristics of the segment Products directed to affluent customers may have limited life , products pass though the life cycle accelerated. Will focus on new experiences willing to pay a premium for the goods they value.

 C annel alternatives
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Launching the new brand

Building brand equity

 Direct versus Indirect distribution  Multiple/Dual distribution cannels  Distribution intensity

Problem: No growth opportunities in the high end of the on -premise niche and lower than expected profits in the target sector. Overall Business strategy Make Voss a luxury brand that is an accessible super premium by market development and new product development for the new market. Assessing growth opportunities for VOSS: Intensive growth: Review growth opportunities in the premium water category
0

Current Markets Ne Markets Product Market expansion grid TP Process

0 0 3 1

Current Products Market Penetration strategy Develop new markets

Ne Products Create new products Diversification

egmentation Bottled
2
Cultivated taste Relatively Upscale Niche oriented products 10 45 Internet Print

ater category

Yout

Adult T en psyc ograp ics based

2 2 2

Physiographic based
Primary Motivation egment P ysiological Descriptor

Purc asing Be aviour

Durabilit y Function ality Value in products

Loyal to established brands and US products

Stylish products

Fashion Entertainmen t socialising

Total in Median Age Media C annel Pref

11 56 Newspap er Internet

16.5 52 TV Radio

14 41 Internet Magazine

11.5 28 Radio TV

13 24 Magazine Internet

US made products for practical and functiona l purposes 12 46 Radio TV

Loyal to favourite bands

12 70 TV Newspaper

www.sric-bi.com (Kotler, 2009, p. 221)

Innovators Sophisticat ed In charge Curious

T inkers Informed Reflectiv e Content

Believers Literal Loyal Moralistic

Ac ievers Goal Oriented Brand conscious Conventio nal Premium products

trivers Contempor ary Imitative Style conscious

experiences Trend Seeking Impulsive Variety seeking

45

1 4

VALS Segmentation
Ideals Ac ievement elf- Expression Makers Responsi ble Practical Self sufficient urvivors Nostalgic Constraine d Cautious

Market egment Selective Specialisation uper Premium 5 5 5 5 5 5 5 5 Premium Value

6 6

Voss Glass Voss liver Voss Red Voss Red Multipack Voss En anced
8 7

Brand Positioning To water connoisseurs who quest the purest water and the individual style because VOSS is the purest designer artesian water in the world. (Kotler, 2009, p. 275) Marketing trategy (Kotler, 2009, pp. 285 -288) Market Modification Volume = number of brand users X usage rate per user Convert non users Enter new market segments Attract competitor s customers Use the product in more occasions Have consumers use more of the products on each occasion Have consumers use the product in new ways. Product Modification Features, style, packaging Marketing program modifications New distribution channels Adverting Media mix, the message
9

Product Differentiation Emotional Individual style

How the product engages the consumer emotionally Functional How the product performs Tec nical Differences in features design or materials
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Questing : Water Connoisseur membership Affluent lifestyle membership Pure taste Good mixer

Artesian water Pure Designer bottle

Brand Extensions - (Kotler, 2009, p. 258) y y y y Position the brand vertically Separate the premium and value space by using a value entry for the different products and the markets. Develop a new brand Use a sub-brand

Consider Resources and capabilities , intencty of competition , production and marketing ecomnies of scale. Pricing Premium Pricing trategy
items enjoy an exceptional reputation or represent exceptional quality and distinction
A

Pricing Cues Show Quality and Luxury Distribution C annels Exclusive dealings Alliances Partnerships Selective distribution Dual Distribution ? 3 Tier Importer - > Distributor -> clients and
B

Don t compete with water distributors, Importer ->Speciality Food/Drinks Wholesalers - > client Channel design should be in congruence with the distribution and product strategy Reduce the vertical competition in the channel Increase off-premise to Upscale Department stores Speciality/Gourmet retailers Liquor shops

Marketing communications Mix 1. Advertising - Brand image and positioning 2. Events and experiences building brand customer bonds , influencing the influentials Communications Objective (Kotler, 2009, p. 477) Brand awareness Message trategy - Persuasive Building brand preference Encouraging switching to your brand Changing customers perceptions of product attributes and their importance Persuading the customer to purchase now Events and experiences Relevant Involving Implicit
C