2. Packaged Water in India: Market Overview DRIVERS AND CHALLENGES
Current Market Size : 5000 cr Growth Rate : 12-15%
Competitive Analysis: Premium Segment
Himalayan Evian Vedica (old) Natural Mineral Water Market Size :
Parent Tata Global Beverages Danone Group Parle 150 crore
Company
Tagline Live Natural Live Young Natural mountain water
Water Himalayas Evian-les-Bains on Himalayas Market Share
Source the south shore of
Others(including
Lake Geneva
Oxyrich, Bailley, Kin
Target Institutional customer segment: Same Same gfisher, McDowells)
Hotels, airlines, other organized players 28%
Segment
Consumer segment: People willing to Bisleri
pay higher price 43%
Price per 30 70 40 Natural Mineral
Water Kinley
litre (Rs.) 3% 11% Aquafina
15%
Distribution Joint Venture Marketed in India Existing Bisleri Network
by Narang Group
Positioning Untouched by human hands and Luxurious & naturally pure and mineral-
unprocessed, with a very unique taste expensive, healthy balanced water that
mineral water supports your body's youth
3. Reasons for failure of Vedica in 2010 Target Segment
“Masstige segment”(between mass & prestige markets)
Low awareness high-end consumers in posh neighbourhoods, in
about difference hypermarkets or when they visit fine-dines and five-star
between natural hotels.
mineral water
and processed Accounts for 10% of packaged water market, i.e.- 500 crores
water
Profile of the “Masstige Segment”
Unclear Have High Aspirational Values
marketing Desire to be distinctive
strategy Ideal Self Concept: Classy Sophisticated
Tend to define themselves with their possessions
High End Customers
Retailers and Lifestyle and Health Oriented, Sophisticated
distributors Want the best products in terms of quality
unwilling to keep Not at all Price Sensitive
Vedica as it is a
small business for STRATEGY
them
Packaging
unable to The Image of the product should be aligned to the desired self concept of
reflect its the target segment: It must improve and maintain their self concept
premium
positioning The product should give a feel a premium and distinctiveness to the
masstige segment
It should portray itself as a high quality healthy and pure mountain water
for the high end consumers
4. PRIMARY RESEARCH
Method of Primary Research
1. Survey : 32 respondents;
1. Profile: working professionals (high
income group)
2. 18 male and 14 female respondents
2. Depth Interviews : 10 respondents
1. Profile: High end customers
Young Professionals Working Executives High End Customers
willingness to pay premium
The Awareness of Vedica is negligible as compared to the other brands
No 17%
67% do not know the benefits of the natural mineral water, whereas 64% did not
know the benefits between Mineral and natural mineral water
Hence there is clear need to educate the masses about the product category as a
Yes 83%
whole
83% of the respondents said that they will pay a premium if the water brand
0% 20% 40% 60% 80% 100%
claims to be purer and more beneficial to the health
Brand Awareness Benefits of Natural Benefit Awareness about Mineral and
Catch Clear Water: Awareness Natural Mineral water
8% Evian
19% Yes
36%
Qua
Yes
19%
33%
Himalayan
Nestle Perrier 32% No No
13% 67% 64%
Vedica
9%
5. PRIMARY RESEARCH
Attributes Disliked
Packaging Insights
Yes No Indifferent Doesn’t look Aestheticaly beautiful 78%
Too Many Colours 66%
10% 8%
Childish graphics, does not look sophisticated 67%
Text 21%
Graphic on Label 82%
82%
Design/Shape of Body 74%
Bottle Cap 55%
We showed the respondents the picture of the current bottle
82% of them did not find the looks of the bottle premium 0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
82% did not like the graphics on the label
74% said the design and shape was pretty boring and old
fashioned
Package Attributes
For the consumers attractive packaging mattered the most. They rate the
bottle as the most distinctive in the market and worth paying more for. 2nd
14%
preference was brand name
Fresh Look
Availability 65% When we talked to consumers about water, they would play back
powerful feelings about water being the essence and engine of life, yet
Information on packaging - water consumer choice in the category was made in such a shallow way, with
43%
source, etc. 86%
little or no understanding of what the brands were about. This
Brand Name represented a critical lack of involvement.
Price 36% The packaging of the product and the brand communication strategy are
87%
thus instrumental in the Go-to- Market strategy
Atrractive Packaging
6. GO TO MARKET STRATEGY
Phase I (0-3 months) Phase II (3- 6 months)
Product Awareness + Interest Product Engagement
• Package redesign • Campaign for customer engagement
• Above the Line promotions • Customer engagement will result in word of
• Retailer/dealer education is necessary in this stage to mouth, thus facilitating more brand awareness
ensure the success of the strategy
Placement of premium Vedica bottle to be placed on tables in fine dines, 5 stars will automatically draw customers interest towards
the bottle. The unique packaging will portray a sense of premiumness which customers will be able to relate to.
Placement of the bottle in shelves will also attract the attention of the target set of customers
We however leverage on the latter 2 in our Go To Market Strategy in order to prevent any legal issues with using
the word Himalaya
7. GO TO MARKET STRATEGY: Package Redesign
The bottle design should attract everyone who saw it, from busy trade The brand marque can include a faceted brand
buyers to savvy consumers. The suggested packing is done so that icon composed of Green to signify nature, which
Stand out from competitors echo the blue of compacted glacier ice, rising
Gain distribution in major multiples above a distinctive angular typeface inspired by
Justify its premium price point the structure of glacier ice.
Reflect the product's HIMALAYAN and glacial origins
Front side modification Back side modification
• The proposed new package would have Vedica written in green color to • The backside of the bottle would contain all the
symbolise that the water is derived from the lap of the nature. The text necessary information as mandated by the law.
would be written horizontally in order to better catch the customer • However we propose to display the source of
attention and promote brand recall water at the top right side of the bottle in order
• The present tagline would be retained as ‘natural mineral water’ and to ensure customer visibility and thus capture
the word ‘mountain’ will be highlighted in order to indicate its origin their trust with the brand
from the glaciers
8. ATL Activations: Promoting Pristine Purity
Print Ads
OOH (Out-of-Home)
High-end magazines, e.g. Print Ads in health/ personal care/
Escalator digital signage in selected stations fashion Magazines for both male and females. E.g.
Outdoor billboard Femina, vogue, Filmfare, GQ, Forbes, fortune , Wedding Essentials
Airport advertising Magazine etc
Ads on Volvo bus services Key messages
Vedica’s elegant image and package
Designed from the ground
Product benefits of unique water source and good for
health
Television Commercials
The TVC would focus on the pristine purity of Vedica. It would portray a young
women experiencing the purity and beauty of the Himalayas (mountains) as and
when she gulps each drop of Vedica.
The imagery will be that of the himalyas while the purity of the glaciers will be
portrayed
The TVC may end with the Bottle rising from the glacial water to show how the
packaging reflects the source and oozes purity
9. Promoting ‘Pristine Purity’
Kiosks in Offices, malls
• Tie up with corporates and offices for a BTL
campaign. Target segment: The working
professionals
• We can set up small kiosks in get-together areas
of corporate office buildings, SEZs to create
awareness about the importance saving water
and how each one can contribute to safe water
• They will also be educated on the diseases caused
from water and the benefits of safe and pure
drinking water
• The kiosks can also be used to focus on working
women professionals and create awareness
about the functional benefits of Vedica which will
induce them to consider Vedica for their family
Event Sponsorship
Cricket, Hockey tournaments
Charity Dinner
Sponsor for Fashion show –lifestyle product
Product Placement in Movies
10. GO TO MARKET STRATEGY : Distribution Channel
Institutional Trade Promotions
Channel • Offer credit to the restaurants, hotels, clubs and bar
owners
• offer them a price reduction on the product price at the
time of billing for a limited period of time.
• Objective: stimulate higher than normal purchase orders
Institutional Retail and push through products
• Benefits retailers & distributors
Retail: Mix of Consumer + Trade Promotions
High End Supermarkets/ hyper
Hotels, Restaurants
markets offer them a price reduction on the product price at the
time of billing for a limited period of time.
Provide retailers with the racks/hangars/other
promotional merchandise to provide adequate shelf
display area and visibility
Exclusive Retail shops in
Clubs, Bar Airports and Malls selling high Retail merchandising support (on shelf price cuts, retailer
end food items feature advertisements, in-store displays)
Objective: category management
Benefits all parties
We have to convince retailers that it is worth embracing a new brand and compel customers to try Vedica.
Seasonal Aisle, End of Aisle to include the entire Bisleri Portfolio
Recommended displays:
• Planogramming : 3 Facings of Vedica in the category shelves
• Dedicated displays: 10 Facings with backing sheet of the new product and shelf strips of Vedica)
• Posters at store entrance and in-store banners at beverages sections
The packaging is stylish and sure to capture attention
11. GO TO MARKET STRATEGY : Distribution Strategy
Using 120 of its own
trucks, along with the
The transport of
logistics of its
natural mineral water Unlike players such as
distributors and
from the source to Tata Tea's
retailers, Bisleri can
various regions incurs Subsequently To Himalayan, which has
deliver its bulk
very high cost for the make Vedica a only distributors in
The direct to packages at the
company. So Vedica success, Bisleri should key cities such as
institutions model can doorsteps of those
should initially focus fine tune and Mumbai, Bisleri has its
be leveraged upon to who call up the
on metros and tier I leverage on its own storage facility
focus on high end company's hotline.
cities such as strength - service and to put the client at
malls and restaurants The service should be
Mumbai, Delhi, Calcut multiple ease. The just-in-time
kept on for 24 hours
ta, Bangalore, Gurgao manufacturing units. principle is at work
to accommodate fine
n etc where it has a here. This netwok
dines and five star
strong distribution should be leveraged
hotels who find it
network
difficult to forecast
consumption
Place of Purchase
From our survey we find the preference for the Pubs 72%
place of purchase.
The product should be positioned in fine dines, high Grocery Stores 14%
end restaurants , hotels and pubs. They should also Supermarkets 57%
be present in the grocery markets in international
Airport Grocery Markets 71%
airports and high end hyper and supermarts
Fine Dining Restaurants and… 86%
Malls 43%
12. Phase II : Customer Engagement
Vedica ‘Pure at heart’ campaign
This campaign helps the
The target customers will be
customers to show their Vedica team will send a
asked to email us the details of
love/affection/gratitude greeting card on their behalf to
the person whom they want to
towards one person whom that person. And along with the
gift a greeting card and why
they consider as the most pure message give him a Vedica
they consider them as the most
person they have met in their bottle as a sign of purity
pure at heart.
life.
The most unique reactions to the gifts (say 5)
in the entire campaign will be shown on live TV
as a promotion material for Vedica. This will The person’s photograph with
improve the brand perception for Vedica. 10- the card and vedica can be put
15 such short clips can be posted on the on Social media pages
Youtube channel. The entire process creates
an engagement with the brand
Rationale:
• Every person has someone in their life whom they respect for their sincerity and pure nature and want to appreciate that.
• But factors such as time, distance may have forced them to forget this.
• This campaign would give the ‘admirer’ an opportunity to reconnect with the other person free of cost while bringing in
the element of surprise for the ‘admired’
13. Execution: ‘Pure at heart campaign would be promoted through various channels such as TV, Radio, print
ads, billboards/hoardings and social media which would create awareness and encourage customers to participate by
mailing us the details
TV: A short clip of 15 sec would be displayed after the main Vedica ad informing customers about the launch of
such campaign
Radio: The campaign can be advertised during the evening shows when the customers return from work and
are relaxed
Print ad: This is again used to create maximum awareness among the customers. Leading national dailies can be
used
Facebook:
We can post the images of the ‘admired’ person with
the greeting card in hand, Vedica strategically placed
in the photo on the Facebook page.
The message in the greeting card would be posted as
a description below the image.
We can post the information of the photos and
message being uploaded on our Facebook page via
email to the admirer as well as the admired.
Message from the admirer
In this way we are getting more customers to follow us on Facebook which can be used a medium for future
promotions
