20 liters per person per day from a source within 1 kilometer of the household is deemed sufficient for adequate drinking and personal hygiene. Rural areas lag far behind cities in access to water with more than 653 million people using an unimproved water source or ground water. In Siem Reap, it’s estimated that 4.6 million water bottles are generated by the tourism industry alone. That’s not including local consumption. That figure is based on the average visitor stay and daily consumption, and number of visitors per year.

1. Royal University of Law
and Economics
Subject: Market Analysis Of
Mineral Water in Cambodia
(Evian)
Lecturer: Dr. Phea Vanna
Subject: Corporate Strategic Planning
Group: 1
Class: MBM13-1B2Y2
Year: 2017

2. Group Members
1. Kang Sreynon
2. Keo Chanpunreay
3. Kheng Viputh
4. Kit Vannatith
5. Keat Vathanak
6. Chea Sothorn
7. Chin Channarith
8. Chhum Sothea
9. Dit Somai
10. Nem Samedi
11. Tun Phany
12. Thoun Seyha
13. Pos Sokkunthea
14. Prom Maryyuthanea
15. Phourn Chhorly
16. Moulsem Chormvirak
17. Ven Kimleang
Vathanak

3. CONTENT
1. Introduction
2. Company Overview
3. Market Situation
4. Market Description
5. Market Segments
6. Projection of potential Market Demand
7. Projected Total Market Size
8. Estimate of Market Share
9. SWOT
10. Conclusion
Vathanak

4. 1. Introduction
 20 liters per person per day from a source within 1
kilometer of the household is deemed sufficient for
adequate drinking and personal hygiene.
 Rural areas lag far behind cities in access to water with
more than 653 million people using an unimproved
water source or ground water.
 In Siem Reap, it’s estimated that 4.6 million water
bottles are generated by the tourism industry alone.
That’s not including local consumption. That figure is
based on the average visitor stay and daily
consumption, and number of visitors per year.
Vathanak

5.  French brand
 Owned by Danone Group
 Entered in US market in 1978
 Established in 1789
 Brand line: healthy and
beauty products
2. Company Overview
Vathanak

6. HISTORY
Vathanak

7. MISSION
 Provide purest water
untouched by man
 To promote healthy
lifestyle
 Work with local
players to protect
and restore the
wetlands resources
 Reduce poverty and
improve
communities living
conditions
Vathanak

8. MESSAGE
1
2
3
4
“The Force of Balance”
“The water you
drink is as
important as the
air you breathe”
“The Original”
“Live Young” Vathanak

9. FOCUS
“Has constantly focused on continuous innovation in
their products as well as a powerful and original
communication to its consumers”
1908 1930’s 1950’s 1968 1980’s 1998 2007-08 2013 2016
Evian begins selling in glass
bottles
Starts selling in PVC
bottles
Purity
High-end
positioning
Live young
Baby & me campaign
starts
Today
September 10,
2016
Targeted Babies
The Original
Water babies ad campaign
starts
Health
Alps as its theme
Live young
Roller babies campaign
starts
Vathanak

10. 3. Market Situation ~ Brand Identity
Prism
Sothea

11.  There are more than 30 local brands (only a few brand of spring
water, two mineral water, and two deionized water) and 9 imported
brands from Malaysia, VN and Thailand(a few of which are mineral
water and the most popular in the market is Evian).
 Prices _ the bottle water can be grouped into Premium and non-
premium segment:
1. The premium segment includes the brands import from France
such as EVian, Volvic, AIX, and Luchon. The bottled sizes of
0.5Liters averages between $0.75-0.9 in supermarket(Evian is
the market leader in all supermarkets, restaurants and hotels)
1. The non-premium brands range from $ 0.11-0.35 for a 0.5Liters
(local brand for $0.125 and Evian for $0.7 in supermarket, but
in five star hotels and restaurants is sold for $3-3.5 )
3. Market Situation
Sothea

12. Bottle Size and Prices
# Type of water capacity Type of Bottle Price
1 330ml Plastic Bottle
2 500ml Plastic Bottle $1.40
3 750ml Plastic Bottle $2.00
4 1,000ml = 1L Plastic Bottle
5 1,500ml = 1.5L Plastic Bottle $2.30
Sothea

13. Type of Packaging
330ml
500ml
1,500ml
750ml
1,000ml Sreynon

14. Competitor’s Prices
Sreynon

15. Average cost of Bottles
Bottle
size
Type of Bottle
Wholesale price
(package only)
Wholesale price
(bottle water) %
Per 200
bottles
Per
bottle
Per bottle
350ml Blow molded $6 $0.03 $0.15 20
500ml Blow molded $8.5 $0.04 $0.12 34
1 L Plastic $10 $0.05 $0.10 50
1.5L Blow molded $0.10 $0.33 30
Sreynon

16. 4. Market Description
As the survey results of Evian water is illustrated that:
 How often people purchasing bottled water
- 88% buy bottles of water
- 51% of people who purchase bottled water are young (between
25-32 years old)
 When do people drink water:
- 41% at work
- 26% of men at home
- 28% of women during exercise
• Perception of Evian is the high quality premium water
Sreynon

17. Survey Result
3) Factors considered
when purchasing water
-41% of men :Price
-49% women :Quality
4) Perceptionof Evian High Quality Premium water
1) How often
do people purchase bottled water?
-88% buy bottles of water
-51% of people who purchase bottled
water are young (between 25-32
years old)
2) Whendo people drink water?
-41%  at work
-26% of men  at home
-28% of women  during exercises
82 RESPONSES Ι 52% FEMALE Ι 48% MALE
Sreynon

18. 5) Evian’s pricing
40% of the interviewee answered that the
best pricing is between $0.82 -$1.25
Then, who is the most
price
sensitive?
-People over 41 years old
-Surprisinlgy 22.5% of young people
between 18-24 yrs old are willing to
pay more
for quality
6) Factorswho influence the
purchase
High Quality perception both in Females
and Males
7) Threatsto Evian
-38% said: cheaper bottled water
(Aquafina and Dasani).
(42% of these are people from 18-40 years
old)
-24% said :tap water
8) Evian’s competitors
-24% :Crystal Geyser
-23% : Fiji
-28% : others
Survey Result (Cont.)
Sreynon

19.  All ages
 Higher discretionary incomes
 Multi-ethnic people
 Healthy and authentic lifestyle
 Well-Informed (normally know about the product
that they are buying)
 Concerns over the environmental issues
TARGET 1
TARGET 2
TargetVirak

20. 5. Market Segments
 Local consumers: inferior local and Asian brands and their main decision making factors
are availability and price. Only the upper segment of local population (Urban_ 20%, Rural
_80%) can afford higher quality bottled water and may thus be not too price sensitive (GDP
per Capita in 2015,Tab…). The key to sustainable patronage would be price competitiveness
at higher quality and constant availability market.
Country
GDP per Capita GDP Growth
$ $ PPP (%)
2014 2014
Brunei Darussalam 40,776 75,700 5.3
Cambodia 1,084 3,242 7
Indonesia 3,515 10,585 5
Lao PDR 1,708 5,162 7.5
Malaysia 10,830 24,715 6
Myanmar 1,198 .… 8.5
Philippines 2,843 6,916 6.1
Singapore 56,287 82,763 2.9
Thailand 5,561 14,661 0.7
Viet Nam 2,052 5,629 6
Virak

21. Country Overview
Main sources of drinking water in Cambodia (wet and dry season)
In 2014, about 51 percent of the households in Cambodia had a “safe/improved
water source” in the wet season and about 58 percent in dry season. One of
the differences between wet (49% ) and dry season (42% )is that a higher share
of the households have access to unimproved rainwater in wet season.
Virak

22. Cambodia population in 2014
Province Capital Area (km²) Population
Banteay Meanchey Serei Saophoan 6,679 678,033
Battambang Battambang 11,702 1,036,523
Kampong Cham Kampong Cham 4,549 1,010,098
Kampong Chhnang Kampong Chhnang 5,521 472,616
Kampong Speu Chbar Mon 7,017 718,008
Kampong Thom Stung Saen 13,814 908,398
Kampot Kampot 4,873 585,110
Kandal Ta Khmau 3,568 1,265,805
Kep Kep 336 80,208
Koh Kong Khemarak Phoumin 11,160 139,722
Kratié Kratié 11,094 318,523
Mondulkiri Senmonorom 14,288 60,811
Oddar Meanchey Samraong 6,158 185,443
Pailin Pailin 803 70,482
Phnom Penh Phnom Penh 758 2,234,566
Preah Sihanouk Sihanoukville 2,537 199,902
Preah Vihear Tbeng Meanchey 13,788 170,852
Pursat Pursat 12,692 397,107
Prey Veng Prey Veng 4,883 947,357
Ratanakiri Banlung 10,782 567,459
Siem Reap Siem Reap 10,229 1,000,309
Stung Treng Stung Treng 11,092 111,734
Svay Rieng Svay Rieng 2,966 498,785
Takéo Doun Kaev 3,563 843,931
Tboung Khmom Suong 4,928 754,000
Total Population 15,255,782
Virak

23. Cambodia Population Growth
(2017 Update)Virak
Year Population Urban Pop (%)
Urban
Population
Country's Share of
World Pop
2017 16,076,370 21.30% 3,430,577 0.21%
2016 15,827,241 21.10% 3,338,486 0.21%
2015 15,577,899 20.90% 3,248,723 0.21%
2010 14,363,586 19.80% 2,845,724 0.21%

24. Year Tourism Arrivals Changes
2016 5,011,712 4.95%
2015 4,775,231 6.1%
2014 4,502,775 7.0%
2013 4,210,165 17.5%
2012 3,584,307 24.4%
2011 2,881,862 14.9%
2010 2,508,289 16.0%
2009 2,161,577 1.7%
2008 2,125,465 1.5%
2007 2,015,128 18.5%
2006 1,700,041 19.6%
2005 1,421,615 34.7%
2004 1,055,202 50.5%
Cambodia Tourist Population
Virak

25. COMPETITIVEPROFILE
PURIFIED WATER
HIGHPRICELOWPRICE
SPRING WATER
PRICE
SOURCE TYPES
 Hard competition
involving quality (mostly focusing
on source types)
and prices
 Environmental positioning
is no more an option, but
a necessity
 Increasing of threats, such as
tap water and flavored water
Viputh

26. Porter's 5 ForcesViputh

27. Porter's 5 Forces  Explanation
• Bargaining Power of Suppliers
 Increase in the cost of Raw Material (cap cost , labeling cost, bottle
cost, carton cost)
 Suppliers supply raw material to local players
 As plastic bottle banned another substitute will be glass bottle
• Threat of Substitutes
 Substitute are Fruit Juices, Health Drinks ,Soft Drinks
 Juices like Real , Slice Mangola , Priya gold Treat, Coca Cola
Viputh

28. • Intensity of Rivalry Firms
 Local brands are major contributing 80% of market share
 Around 200 registered brands in India
• Bargaining Power of Buyers
 Local brands are available in the market in the cheap price
 Buyers have choice from wide variety of suppliers
 Demand is more in the market but branded suppliers is less
compare to local suppliers
• Barriers to Entry / New Product
 New entrants in the market like Amul “Narmada Neer”
 Market is growing which attracts new entrants
Porter's 5 Forces  Explanation (cont.)
SeyhaViputh

29. 6. Projection of potential Market
Demand
Potential market demand of Evian are:
High quality water
Higher demand for quality of life
Have many different sizes
Healthy mineral water
Perfect water for baby
Premium popular brand
Product benefits of unique water source.
Kunthea

30. Evian
14%
Fuji
11%
Saint Amond
7%
Vital
21%
Kulen
17%
Perrier
6%
Oxygenizer
6%
Other
18%
Vannatith
7. Projected Total Market Size

31. 2014 2015 2016
Total Consumption 39.1 43.2 49.6
Evian 2.9 3.3 4.1
39.1
43.2
49.6
2.9 3.3 4.1
0
10
20
30
40
50
60
Measurement:BillionLiter
Total Consumption Evian
Vannatith
8. Estimate of Market Share

32. 9. SWOT
STRENGHTS
 15 years of filtration through the pristine heights of the French Alps
 Brand recognition.
 Best quality product accepted.
WEAKNESSES
 Cost of distribution is high because it only comes from one source.
(French Alps)
 Highly priced products.
 High costs of production.
 Awareness-The customer are not aware of the stage purifying
process of Evian and the added minerals which are available.
Virak

33. 9. SWOT (Cont.)
OPPORTUNITIES
 Scarcity-The metropolitans and big cities have a scarcity of pure
drinking water which Evian can cater.
THREATS
 Nearly 100 brands in this market sector.
 Many new players entering market.
 Competitors ability to invest.
 Price sensitive customer-People focus more on low price.
Virak

34. 10. Conclusion
 Evian is the most famous still water in the French market, as it's also
in the rest of the world including Cambodia. It has a premium status
in the market, and usually is three times more expensive than other
brands of spring water in France.
 It's relevant to mention that Evian, as a global brand, has an strong
esteem in its country of origin and is considered a strong local brand,
which may have helped in its success as a global brand.
 Consumers in France have known Evian for many years and have
developed a close relationship with it as compared to other local
bottled water brands.
Vathanak

35. 1. https://plasticfreecambodia.com/2017/06/14/safe-drinking-water/
2. http://www.tourismcambodia.com/travelguides/provinces/phnom-
penh/population.htm
3. http://www.worldometers.info/world-population/cambodia-population/
4. http://www.phnompenhpost.com/business/mineral-water-firm-building-brand
5. https://www.tripadvisor.com/ShowTopic-g293939-i9162-k5389728-
Bottled_water-Cambodia.html
6. http://www.evian.com/regions/
7. https://opendevelopmentcambodia.net/topics/population-and-censuses/
8. https://www.slideshare.net/lailaikit/strategic-marketing-evian
9. https://www.slideshare.net/marcelobrescia/marketing-research-evian
10.https://www.slideshare.net/yberger/evian-branding
References

36. QUESTIONS AND ANSWER!