1. Executive Summary
The marketing operations are an integrant part in the activity of every company and what was once a temporarily occurring solution is now an ongoing process. With the launching of a new product, all companies conduct intense market research in order to identify the characteristics of the competition and the customers; they analyze the internal and external forces which affect the corporate operations and develop a complex set of decisions on product, price, distribution and promotion, all organized into the marketing plan.
The current plan is focused on developing strategies and conducting research prior to the launching of Evian’s new line of bottled water. The marketing campaign will be based on the benefits of drinking the new water which contains increased levels of oxygen and it will take an environment friendly approach. The primary features in this approach will be given by the Alpine source of the pure water, the biodegradable nature of the bottles used and also the promotion of drinking water as source of energy and health. But before actually developing the campaign, the company has to conduct market research in order to identify the characteristics of the consumers and the industry. 2. Company Description
Evian is an international brand in water, selling pure bottled water emerging from springs in the French Alps. Today, the company is part of international conglomerate Danone Group, which registers annual profits over 13 million euros and which employs more than 88,000 individuals. Danone’s corporate mission is to “bring health through food & beverages to a maximum number of people” (Official Website of Danone, 2008)
The beverage sector is extremely important for Danone and in 2005 they retrieved more than a quarter of their annual profits from the selling of beverages. “Beverages, which accounted for 27% of consolidated sales, showed continued pace in 2005, with organic growth for the past five years averaging close to 8% a year. Sales for the year came to 3.5 billion euros, showing a raise of 10% at constant exchange rates and scope of consolidation. Operating margin reached a vigorous 13.7% despite the steep rise in prices for the PET used to make bottles – the business line’s main raw material” (Danone Group 2005-2006 Annual Report).
The French group has established a clear strategy in promoting a healthy life style through the consumption of healthy aliments. The Evian water perfectly integrates within this desiderate as the consumption of water has always been promoted as a benefit to the individual’s health. In addition, the group also emphasizes on the pure source of provenience and the process through which the water is collected and bottled. “Every drop of Evian starts in the heart of the pristine heights of the French Alps. Here, pure, clear rainwater and melting snow slowly filter down through ancient layers of glacial sand and rock. In a journey that takes over 15 years, the water gradually becomes enriched with essential minerals, until one day it emerges, 800 feet below, at the famous spring in Evian-les-Bains” (Detox with Evian, 2008) 3. Situational Analysis
The situational analysis is an important process in the launching of a new product as it identifies the characteristics of the market onto which the product will be sold, including customers’ preferences and the competition’s strategies. Relevant analyses to be conducted at this stage include the SWOT, PEST and competitor analyses, as well as the identification of the primary target market. 3.1 SWOT
- Danone is an undisputed leader onto the international market, possessing extensive experience and enjoying a well established reputation - They register impressive financial highlights with all their business operations, beverages, biscuits and dairies - They have increased access to all required resources, including capital, labor and...