Marketing Strategy and Marketing Campaign of Alps Blue - Report Example

Alps Blue: Marketing Strategy and Marketing Campaign Contents Introduction 3 Industry/ Market Identification 3 Marketing Strategy 5 Segmentation 5 Targeting 5 Positioning 6 Marketing Campaign 8 Product 8 Price 8 Place 9 Promotion 10 Reference List 11 Introduction The objective of the present report is to formulate a well-planned marketing strategy for the launch of new type of bottled water. The brand name of the packaged drinking water will be ‘Alps Blue’. The product was chosen because of two reasons. The fist reason is the bigger organisational goal of expansion and growth. The global market for bottled water is increasing significantly, owing to the increased health awareness among consumers as well as unavailability of clean drinking water. Also, with increasing income and better lifestyle, consumers are switching to packaged drinking water. Looking at the above opportunities, the organisation has decided to launch new bottled water in the market of China. Industry/ Market Identification The product, mineral bottle water, will be come in many sized as well as many variants. China has been chosen as the country for launching the mineral water bottle because of several reasons. China has the largest population in the world and the average per capital income has increased substantially over the past few years (Rapoza, 2013). Similarly, the global packaged drinking water market share of China has doubled in less than a decade, signifying a steep growth in the consumption of bottled water. Also, the total consumption volume of bottled drinking water has surpassed that of the United States (Rapoza, 2013). Below here is the monthly output as well as year on year growth of bottled water across China. Figure 1 Monthly and Yearly Output (Source: Research in China, 2011) However, the scenario is different in terms of per capita consumption. The average per capital packaged water consumption across the globe is 30 litres and China is way behind the average consumption. Therefore, it can also be said that the penetration and usage of bottled water among Chinese consumers is lower compared to other highly populous and mature markets. This provides plenty of opportunity for the organization to launch and growth the product in this market (Rapoza, 2013). Another important industry factor to be noticed is that almost all big brands available in the Chinese market are local. Some of the top brands which are leading the Chinese market are Master Kong, Nongfu Spring, Wahaha and Coca Cola as the only American brand. Figure 2 Brands and their market share in China (Source: Research in China, 2011) Most of these brands are focusing on mineral and value-added packaged water products such as flavoured water. Thus, it can be said that the water bottle brands present in China are not only focusing on distribution but also offering unique variety packaged water for higher brand value. The new product will be able to attract new market through various strategies such as penetration, distribution and offering new and unique flavoured drinking water (Rapoza, 2013). Another shift which is visible among Chinese consumers is their increasing awareness towards healthy and clean drinking water as well as harmful health effects of unhygienic or unclean drinking water (Rapoza, 2013). Therefore, the organisation has another opportunity of building relationship with Chinese consumers by offering them packaged mineral water bottled, as these consumers are also looking for natural, quality and premium mineral water. Marketing Strategy Segmentation Alps Blue Bottled mineral water can be sold in multiple packages such as 200 ml, 330 ml, 500 ml, 1 litre and even in bulk such as 10 to 50 litre water bottle packs. However, during the launch of the new bottled water business in China, focus will be majorly on retail consumers. Segmentation can also be incorporated in terms of pricing and value. In general, packaged mineral bottled are divided into three major segments which are, premium packages water, natural mineral packaged water as well as packaged water. The bottled water business is divided into many small and large, local, international and national. While the local brands capture particular regions, big brands are spread across the nation and even neighbouring countries. A common shop-shelf stores both national and international big brands as well as local brands which differ from region to region. The target profile of customers for the bottled drinking water will be 1. Alps Blue- Premium mineral water: This variant will target high-profile Chinese customers with luxury and high-end life style. These are consumers who are health conscious and ready to pay a premium for quality products. 2. Alps Blue - Regular mineral water: This variant is targeted towards general consumers as well as those who consumer mineral water on a daily basis. These are consumers belong from middle to upper-middle income strata and have started to invest recently in health-conscious products and service. 3. Alps Blue- Flavoured mineral water: This variant’s primary target customers will be consumers who want differentiated and unique healthy products. Primary target segments will be students, young professionals and children. Targeting Consumers in the contemporary environment are becoming health-conscious, not only in terms of food but also their drinking habits. While a shift towards healthy living has seen consumers ditching carbonated drinks and switching to fruit juices and other healthy drinks, shift is also visible in terms of drinking water habit. Homes and offices have now mandatory water purified to ward off harmful germs from drinking water. At the same time, people are choosing mineral and packages drinking water over normal drinking water in places such as restaurants, malls, streets and also while travelling (Smith and Taylor, 2006). The mineral water launched by the organisation will be fulfilling all requirements of the Chinese consumers by meeting the specific demands. Chinese consumers have been targeted as the huge population will also provide diversified set of consumers which can be targeted according to the features and offerings of the products available (Kotler, et al., 2002). For increasing the customer base and formulating a strategy for enhancing brand value, the variants of the mineral bottled drinking water will be divided into two categories: 1. Health- conscious consumers: The first targeting factor will be health conscious customers who are looking for a healthy lifestyle which includes healthy foods as well as healthy and hygienic drinking water. 2. Consumers looking for value for money: This demand among consumers will be satisfied through flavoured drinking water as well as premium and pure drinking mineral water for those willing to pay extra for differentiated and top products in the bottled-water category. Positioning The major strategy for positioning will be by targeting customers from the above target segments. Unlike other brands, the positioning of the mineral water will be as healthy and pure bottled water with guarantee (Smith and Taylor, 2006). While the three different variants described above will different in value-added features and extra offerings, the fundamental purity of the water will be same, creating an image of a people’s brand. A perceptual map will help in identifying the unique positioning status of the bottled drinking water and accordingly create marketing mix strategies to establish itself in the Chinese market. Perceptual Map High Quality Master Kong, Wahaha Alps Blue, Nongfu Green Alps Blue Coca Cola High Price Low Price Runtian Low Quality (Source: Author’s Creation) The main objective of this mineral water brand is to position itself in the high quality and affordable pricing segment, according to the perception map. Here, the bottled water brand will be fighting against multiple variants such as premium drinking water brands, packaged water brands, mineral water brands and bulk- packaged water brands. For premium water brands, the Alps Blue will focus on its health benefits and hygienic features of its products. Also, the packaging will be a differentiating feature in this segment. For packaged water and bulk-water, Alps Blue will offer discounts on bulk-purchases and also value-for-money variants. Campaign narrative A campaign narrative will set the tone for the campaign by transferring the message though a uniquely designed logo or punch lines (Vaughan, 2000). This will also help in generating awareness as well as attracting consumers towards the campaign. The narrative of the campaign will be “Alps Blue, trust in every drop” The above campaign narrative communicates the main differentiating factor that is quality to its customers. Marketing Campaign Product The product to be launched by the organization will be Alps Blue packaged drinking water. It will come in three brand variants, Alps Blue Premium, Alps Blue Regular and Alps Blue Regular. Features and their benefits The water will be sourced from mountains and natural springs and therefore the water will be devoid of any toxic or heavy metal substance. Also, the water will be free from microbiological contamination. Natural spring water have high amount of bicarbonates such as chloride, potassium and sulphate which are healthy for people (Neumeier, 2006). Product offerings 1. Sleek and comfortable: The packaging will ensure that the shape of the water bottle is comfortable and easy to hold. 2. Package Design: The major color used for packaging will be blue and green signifying purity and good health respectively. Packaging will be different for different variants (Neumeier, 2006). 3. Packaging Information: All mandatory information such as ingredients, manufacturing and expiry date and usage will be written in the bottle. 4. Brand name: The name of the brand, ‘Alps Blue’ signifies high purity, strength and quality. Alps are a range of high mountains which is synonymous with long standing and pure and therefore the name was selected (Smith and Taylor, 2006). Price Strategy for pricing will be according to different product variants. Initially, the brand will launch 500 ml, 1 liter, 2 liters and 5 liters water bottle. However, for premium mineral water segment only 500 ml and 1 liter bottle will be available. Similarly for flavored drinking water, Product/Variant 500 ml 1 L 2 L 5 L Alps Blue Regular .25 dollars 0.5 dollars 1 Dollars 3 Dollars Alps Blue premium 2 Dollars 4 Dollars 8 Dollars 17 Dollars Alps Blue flavored 1.2-2.5 Dollars 2.5-5 Dollars 5- 10 Dollars 15-25 Dollars only 1 liter bottle will be available. The pricing of the water bottle variants is as follows: The above pricing strategy will target the below segment of customers. The first customer segment is high-end customers willing to pay premium for differentiated and quality products. The products for this target group are Alps Blue premium and Alps Blue flavored drinking water. The second target customer group will be regular buyers and for them the organization will offer Alps Blue Regular. Place The launch will be pan-national wherein major cities of China will be targeted. As the consumption of bottled drinking water is more among urban consumers compared to rural ones, the initial target locations will be top five cities of China in terms of economy, per capital spending, cost of living and average population (Kitchen and Li, 2005). Distribution of Alps Blue packaged drinking water will be through distributors and suppliers. Top 5 suppliers from each city will be chosen on the basis of their capability, reach and price (Ferrell and Hartline, 2010). The suppliers will ensure that the retail shelf is always full with Alps Blue brands and demand-supply gap is minimized. While Alps Blue Regular brand will be distributed to all big and small retail stores, kiranas, shops, small supermarket and grocery chains, Alps Blue Premium and Alps Blue Flavored will be limited to big retail chains such as Walmart, Spencer and other local known retail brands. The premium and flavor brands will also be distributed to various clubs, bars, pubs, high-end schools and leisure associations to business-to-business partnership (Vaughan, 2000). Promotion A 360 branding and marketing strategy will be implemented for promoting the product among Chinese consumers. The various channels used for promotion and advertisement will be as follows; Television Advertisements: Television advertisement for Alps Blue will consist of 40 seconds to 1 minute advertisements wherein the different variants will be promoted through testimonials. Subsequent television advertisement will also include endorsements of the brand by celebrities (Kim, Han and Schultz, 2004). Print: Print magazines will be a critical source for communicating brand awareness among consumers. Health magazines can be specifically targeted which will increase brand awareness as well as subsequent information search (Marieke, 2004). Outdoor Advertisement: As the Alps Blue is a brand for mass consumers, outdoor advertisement will help in generating substantial awareness and curiosity among consumers regarding the brand (Vaughan, 2000). Outdoor advertising will include placing billboards and posters across major traffic areas in the selected cities. Radio- Radio will cover advertisements and promotions by RJs and chat sessions from well-known local hygiene and health experts. Social-media Marketing: Social media marketing will include viral marketing, online campaigning, open feedback forums and website management. Curious customers and others seeking information about the brand will turn to the company’s website. Thus, it is important that the website is user friendly, attractive, convenient, easy to understand and filled with all required details (Mangold and Faulds, 2009). The company can also utilise promotional pages available in multiple social websites like Instagram, Twitter and Facebook. The company can also its products in numerous health-related websites and forums (Sophia and Zyl, 2009). Reference List Ferrell, O. C., and Hartline, M. D., 2010. Marketing strategy. 5th ed. Connecticut: Cengage Learning. Kim, I., Han, D. and Schultz, D.E., 2004. Understanding the diffusion of integrated marketing communication. Journal of Advertising Research, 3, pp. 31-45. Kitchen, P.J. and Li, T., 2005. Perceptions of Integrated Marketing Communications: A Chinese ad and PR agency perspective. International Journal of Advertising, 24(1), pp. 51–78. Kotler, P., Armstrong, G., Saunders, J. and Wong, V., 2002. Principles of marketing. Harlow: Financial Times Prentice Hall. Mangold, W. G. and Faulds, D. J., 2009. Social media: The new hybrid element of the promotion mix. Emerald Management Reviews, 52(4), pp. 357-365. Marieke, D., 2004. Consumer behaviour and culture: Consequences for global marketing and advertising. Thousand Oaks, CA: Sage Publications. Neumeier, M., 2006. The Brand Gap: how to bridge the distance between business strategy and design. Berkeley, CA: New Riders.  Rapoza, K., 2013. Bottled Water Market Quickly Turning Chinese. [online] Available at: http://www.forbes.com/sites/kenrapoza/2013/08/13/bottled-water-market-quickly-turning-chinese/ [Accessed 31st July 2014]. Research in China, 2011. China Drinking Water Industry Report, 2009-2010. [pdf] Research in China Available at: [Accessed 31st July 2014]. Smith, P.R. and Taylor, J., 2006. Marketing Communications. London: Kogan Page. Sophia, A. and Zyl, V., 2009. The impact of Social Networking 2.0 on organisations. The Electronic Library, 27(6), pp. 906 - 918. Vaughan, R., 2000. 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