The document provides an overview of the French bottled water market and Nestlé Waters' position within it. It discusses key market figures showing declining volume and value. Competition is fragmented with Nestlé Waters holding a 24.5% market share. Using Porter's five forces, it analyzes the threat of substitutes and new entrants. Nestlé Waters is a market leader with 14 brands in France. It has a global sustainable development strategy and focuses on health, pleasure and natural positioning. The branding strategy section details Perrier's positioning, packaging, pricing, distribution and communication approach.

1. NESTLÉ WATERS
CASE STUDY N°1
Customers, Value and Profitability
Gabrielle Pinchaud
Marion DUCLAUX - Adrien DAMEZ - Jules CLEMENT - Laurent CHADIAN - Vincent DI LEONE
J’suis pas chaud
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2. La Subitudine
AGENDA
MARKET
KEY FIGURES
NESTLÉ
KEY FIGURES
BRANDING STRATEGY
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3. SU
MARKET
KEY FIGURES
MARKET VOLUME // MARKET VALUE // COMPETITION // PORTER’S 5 FORCES SCHEMA
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4. FRENCH BOTTLED WATER MARKET
MARKET VOLUME (2010)
Million liters Growth
8 600! 0,00%!
8 401
8 400!
8 143 -1,00%!
8 200!
8 000!
7 804 -2,00%!
7 800!
7 588 -2,50%
7 600!
7 396 -3,00%!
7 400! -2,80%
-3,10%
7 200! -4,00%!
7 000! -4,20%
6 800! -5,00%!
2006 2007 2008 2009 2010
MILLION LITERS! Growth!
Source :
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5. FRENCH BOTTLED WATER MARKET
MARKET VALUE (2010)
Million euros Growth
3 900! 0,00%!
3 850
3 850!
3 787
3 800!
3 750! -1,00%!
3 698 -1,40%
3 700! -1,30%
3 645
3 650!
-1,60% 3 597
3 600! -2,00%!
3 550!
-2,30%
3 500!
3 450! -3,00%!
2006 2007 2008 2009 2010
Turnover! Growth!
Source :
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6. FRENCH BOTTLED WATER MARKET
COMPETION
Others
8,60%
24,50%
38,10%
28,80%
Source :
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7. SU
PORTER’S 5 FORCES SCHEMA
NESTLÉ WATERS
Potential
entrants
FRENCH BOTTLED
Suppliers WATERS MARKET Buyers
Substitutes
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8. High entrance New brands
barriers
A new brand or a new
•High investment required takedown that directly
•A mature market competes with products that
•A necessary «price» are positioned on the same
positioning target
•Importance of R&D
Low risk Moderate risk
Potential
entrants
FRENCH BOTTLED
Suppliers WATERS MARKET Buyers
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9. Potential
entrants
A very low negotiation power
(Purifying agents, plastic or glass bottles
suppliers)
FRENCH BOTTLED
Suppliers WATERS MARKET
• Small sizewith suppliersbeverage giants
negotiation
of
food &
(tough
like Nestlé)
• Maybe on product quality ?
Substitutes
Low risk
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10. FRENCH BOTTLED
Suppliers WATERS MARKET Buyers
Substitutes
Tap water : Other beverages :
• Not in many regions,
the same use
• Sodas/Juices and more
are
• But is as good as
tap water
becoming more
«healthy» oriented.
bottled water
High risk Low risk
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11. Potential Distributors
entrants
• Bottled with main distributors which
negotiate
waters producers have to
are fighting to lower the prices
FRENCH BOTTLED
WATERS MARKET Buyers
Consumers
Substitutes •Consumers have a large choice
available
•Importanceloyalty is a key point
on differenciation
•Customer
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12. FRENCH BOTTLED
WATERS MARKET
MATURE MARKET
LOW PRODUCT DIFFERENCIATION
IMPORTANT FIXED COSTS
INDUSTRIAL GIANTS
High Internal competition
SU
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13. SWOT
Strengths Weaknesses
• Market leader (World & France) • Products are more expensive than
• Well developed quality process competitors products
• Strong Research & Development • Substitute products (tap water)
• Fast moving consumer goods • No “star” product
• •
Opportunities Threats
• High price of products
• Buyout of small brands • Development of store brands and first price
• Creation of new brands products
• Innovation of products • High level of competition
• Mature and stable market • Innovation of competitors
• • Development of quality norms
•
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14. NESTLÉ WATERS
KEY POINTS
KEY FACTS // GLOBAL STRATEGY // COMEPETITIVE POSITIONING // SEGMENTATION //
MAPPING
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15. NESTLE WATERS IN A FEW WORDS
LEADER on the French market
14 WATER BRANDS in France, 67 brands worldwide
33% market share in France (value)
1,6 bn liters sold in 2010, representing €6,4 bn
A sustainable policy : -20% non sustainable activities
by 2012.
(2010)
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16. A sustainable policy : -20% non sustainable activities
by 2012.
packaging
Nestlé Waters has reduced packaging weight per litre
-19% produced by 19% between 2005 and 2010
energy Nestlé Waters has reduced energy consumption per
SU
litre produced by 22% in its factories between 2005
-22% and 2010.
water With 0.65 L additionnal water used to produce one
liter in 2010, Nestlé Waters has reduced its water
-34% use ratio by 34%.
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17. NESTLÉ WATERS COMPETITIVE POSITIONING
Analyse based on consumer value, know-how, ressources required at each step of the
conception – manufacturing – distribution process.
low 1 2 3 4 5 high
SU
MARKETING
• Range!
• Market share!
PRODUCTION
• Productivity!
• Capacity!
• Localization!
R&D
• Budget!
• Potential!
FINANCE
• Range!
Debts
• Market share!
Financial Capacity
HUMAN RESSOURCES
• Range! organization
Internal
Nestlé Waters Key Success Factors
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18. PRODUCT SEGMENTATION
SU
Still water where Nestlé Water is market leader
Sparkling water Nestlé Water is also leader on this market
Aromatized water created in 1985
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19. MAPPING
Nature
Social Individual
value value
Science
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20. BRANDING STRATEGY
KEY FIGURES // POSITIONING // PRODUCT // PRICE // PLACEMENT // PROMOTION
SU
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21. KEY FIGURES
2007 turnover : € 407 millions
6,55% market share within Nestlé Waters
Present in 125 countries
25% on the French sparkling water market
#1 International bottled sparkling water brand
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22. SEGMENTATION
4,19% 95,81%
Flavoured
Sparkling water
Sparkling water
88,58% 7,23%
Mineral sparkling water Spring sparkling water
2010, in volume
SU
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23. POSITIONING
Health
Drug Beauty
Vitality Beneficial
Origin On table
Legend
Eat well
Nature
Local Pleasure
Pleasure
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24. PRODUCT
Consumer experience
#3 shape
hearing #2 color #4 taste
#1
green
«pshiiiit» gaz &
sexy design bubbles
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25. PACKAGING
Perrier nature
Glass : 75 cl, Plastic : 50 cl Can : 33 cl
33 cl and 20 cl and 1 L
Flavoured Perrier
Plastic : 50 cl,
Eau de Perrier
Glass : 75 cl, 1 L Plastic : 1 L
Subituuuudine
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26. PRICE
0,39€ 0,44€ 0,50€ 0,53€ 0,70€ 0,70€ 0,77€
Higher prices in SuperMarkets than HyperMarkets
0.15€ / 0.20€ of difference
SUBIRE
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27. DISTRIBUTION
RETAIL DISTRIBUTION
All kinds of bottles are
present on store
Good positioning (eyes and
hands level)
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28. DISTRIBUTION
CATERING TRADE NETWORK
Water represents 50% of non alcoholic sales in restaurants
High competition with the «carafe»
Eau de Perrier (1 L & 50 cl) is the 4th sold water
Other ways of distribution are : Automatic distributors
Bakeries...
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29. COMMUNICATION
GOALS
SU
•Reinforce the
STRATEGY notoriety
TARGET : 18-35 ANS
•Originality and •Make the target
younger
conviviality
• Advisors •To win new
•Become a « pleasure
• Active audience customers who look
source » instead of
on the website for new pleasure
being a healthy water
without sugar excess
as their competitors
•Develop the link
the brand and the
customers
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30. COMMUNICATION
Medias
• TV
• Internet : e-mailing
• Club Perrier
Non media
• Touch point advertising in Catering Trade Network
• Sponsoring : Rolland Garros
• Promotionnal products
• Flyers
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31. COMMUNICATION
Brand values
• Impertinence & humorous
• Social
• Sensations & Emotions
• Natural > Classic
• Sparkling > Pleasure
Various images of the brand :
• Perrier Forever (history & origins)
• Perrier Lifestyle (taste & quality)
• Perrier Re-Source (energy & dynamic : "L'air, l'eau, la vie…")
• Alternative (daring & cutting-edge : "Perrier c'est fou")
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34. NESTLÉ WATERS
CASE STUDY N°1
Thank you for your attention
Marion DUCLAUX - Adrien DAMEZ - Jules CLEMENT - Laurent CHADIAN - Vincent DI LEONE
lundi 21 novembre 2011