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Transcript of Evian
Marketing Mix The company French water company, present in 150 counties;
Owned by Danone Group: shared values of sustainability;
Its top national markets: France, UK, Germany, Japan and USA account for 74% of its sales;
Number 1 premium brand in the market. In 2011 new campaign: "Live Young" with significant market share gained in all markets, the UK for instance seeing a 3.5% volume share increase over the year. Swot Analysis With over 200 brands, lots of competition in the water market
Tap water represents a competitive product free of charge. Threats Opportunities Strengths After some years of negative growth during the financial crisis, the French water industry started to grow again.
The number of bottled water consumers among the French population increased from 41 to 47% between 2010 and 2011
Flavored water is a small but fast growing market with a growth of 20.1% in terms of value between 2010 and 2011 Weaknesses Marketing Strategy Marketing Mix Product policy
Communication Policy Product Policy Objectives:
Offer a broad range of high quality bottles for the high income, multi-cultural target for each type of need;
Develop a sustainable and environmental-friendly product;
Develop innovative packaging to reinforce customer attachment in the luxury segment;
Offer a deep product line of bottles with different size and materials to respond to the first objective;
Offer the rPet bottle with less plastic for the reduction of footprint;
Creation of the spray based on Alps water for skin and hair care;
Introduction of limited edition bottles each year in collaboration with luxury fashion brands and customized bottles to meet the premium segment expectations;
The offer must fulfill the high expectations of the high-income target, in terms of depth of prodcut line and quality of the water;
Consumers are more and more sensitive to environmental and health issues: a lot of external pressure from different stakeholders;
The limited edition products and customized ones aim to attract and respond to specific expectation of high-income customers with a particular focus on fashion, design and style. Price Policy Objectives:
The pricing strategy of Evian aims to preserve its luxury image
Skimming price responding to its target market
Product-form pricing: a 1-liter bottle of Evian may cost in average 0,50 cents while the 400ml of Evian Water Spray costs around 4,50€
The average price is around 50 cent/ liter, higher than the other competitors
Avoid too many promotional initiatives to preserve brand image
The targets have a major willingness to pay for more quality and are not too sensitive to the price
Differences in price can respond to each particular target market of Evian, like customers with fashion life-style (customized and limited edition bottles that cost more than classic ones) or sportive people who care much more about health, to gain higher margins on their products.
Adjust to competitors price in the premium segment Communication Policy Objectives:
Increase brand equity and customer purchase;
Increase customer loyalty and strong customer experience;
Promote the brand concept of "Youth through Hydration";
New “Live Young” campaign reinforcing the brand image;
Viral Marketing: TV ads, Youtube, big billboard in the main public centres (airports, malls, streets) to build brand awareness and increase customer purchase;
Increase customer experience, through internet communities: Facebook, Twitter, Live Young blog, gadgets (Live young T-shirts):
Creation of a fun and interactive initiative: create the longest video ever through people participation in the “baby dance” spot;
Test on website: How young are you?
Tv ads and billboards help to reach a large public and give a first moment of knowledge of the product;
The website and online communities facilitate the attachment and a strong community sense among customers;
The large use of digital communication has low cost of implementation and low cost of failure;
Moreover, the creation of customer experience is the base of a strong brand equity that reinforces the purchase rate, customer loyalty, and in the long-term profits. Distribution Policy Objectives:
Optimize distribution coverage, encouraging hotels, fitness and entertainment centers to sell Evian water so to reach the customer on the move;
Minimize distribution footprint;
Intensive distribution: Evian is sold in all major retail chains, Auchan, Casino, Carrefour, but also in star-rated hotels, fitness centers, snack bars, restaurants, universities;
Short but also direct distribution: direct free delivery to home through internet sales;
Negotiate the referencing strategy and shelf space in sales retailers;
More than 60% of products are delivered through trains and electricity technology trucks to reduce footprint;
The intensive distribution with high coverage must reflect the brand image of a product adapt to different situations and needs;
The direct channel establishes close link with the clientele building customer loyalty and higher profits;
The ecological distribution policy responds to customer demands of a more environmental-friendly products. Very old brand: water is known for its benefice on health since 1790;
Strong prompted awareness in France
Positive image as a fashionable – healthy - high quality product
French leader in still mineral water: 18% of Market Shares followed by Contrex (11%, Nestlé) and Volvic (10%, Danone) (2010)
Sales in growth thanks to the International Campaign “live young” which was a true success. The “roller babies” video is the world record of number of views for a commercial clip
Strong ability to innovate in the packaging (Pure Evian and limited editions) and in distribution means (test for a “we deliver” service) Difficult to innovate on the physical attributes of the product, as it is a natural mineral water;
The brand is exclusively associated with pure water (Fail of Evian affinity, the new cosmetic line);
No extensive volume. Volume only depends on the Evian source capacity. Increasing incomes would mean increasing prices 
Only one production site possible for water DANONE EVIAN 50 years of existence
2011 turnover of €19,318 million (+7.8% since 2010) and a Net current profit of €1,749 million
World number 1 in fresh dairy product, World number 2 in bottled water, World number 2 in baby nutrition and European number 1 in medical nutrition
Presence in 150 countries, 51% of turnover in emerging countries with growing markets
Strong industrial capacity and workforce (101,885 people) Objectives
Evian wants to be the idol of the market, to valorise water as much as possible and to keep growing in profit.
Convince customers they are environmentally friendly
Behavioral: Consumption situation and occasion
Pregnant women and babies (families)
Sportive people/ Active life style people (29% of consumers seeking status and aesthetic health)
Evian was, initially, the water of babies, then of the Alps, then the water of balance, later the water of balanced strength, and now a source of youth. Evian positions in the market as a premium bottled water which is pure and healthy.
Sources of volume
From competitors with similar segment, like Vittel;
Actual consumers and new customers drinking tap water;
Driving elements of the mix
product policy (focus on the bottle); Thank you for
attention! CONCLUSIONS Evian's strategy is responding to different pressures in the market. On the one hand, the French water industry started to grow again. Thus, Evian strategy must attract these new potential customers offering a wide range of products, from classic bottles to limited edition bottles. Moreover, Evian has to enforce their communication policy that must increase brand loyalty and customer experience, and in long term increases profits.
On the other hand, more pressures come form the market for the use of more environmental-friendly materials and distribution means to which Evian responds with the new rPet bottle and the use of electricity based trucks.
The company has to manage carefully its price policy not increasing or lowering the price facing competitors, so it has to avoid too much sales promotions, and preserve their image of a luxury brand. WATER MARKET STILL WATER MARKET In France traditionally water without gas is preferred over water with gas
The still water market grew by 3% in terms of volume and by 3.5% in terms of value between 2011 and 2012.
Cause-Related Marketing on behalf of Evian’s sustainability and CSR activities might improve its brand image even further. WATER MARKET Main competitors are Vittel and Hépar from Nestlé, which are also premium waters communicating to be healthy
Due to stable market share, difficult to attract new customers
Environmental movement campaigns against bottled water
Most consumers don’t reward companies that are environmentally friendly, but punish those acting irresponsible
Only one source in France, which might lead to a higher environmental footprint STILL WATER MARKET