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EVIAN mineral water Cambodia market analysis -

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.

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EVIAN mineral water Cambodia market analysis -

  1. 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. 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. 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. 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. 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. 6. HISTORY Vathanak
  7. 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. 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. 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. 10. 3. Market Situation ~ Brand Identity Prism Sothea
  11. 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. 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. 13. Type of Packaging 330ml 500ml 1,500ml 750ml 1,000ml Sreynon
  14. 14. Competitor’s Prices Sreynon
  15. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 26. Porter's 5 ForcesViputh
  27. 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. 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. 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. 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. 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. 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. 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. 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. 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. 36. QUESTIONS AND ANSWER!

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