Introducing Chaudfontaine Premium Water to the U.S Market

Edgina Desormeau, Derek Medwed, Tomer Melman, Christina Papale

Presentation Outline

History

Product Description

Market Share

SWOT Analysis

Target Market

Consumer

Distributor

Objective & Strategies

Sale Objectives

Trade Objectives

Consumer Objectives

Sales Force Strategies

Trade Strategies

Consumer Strategies

Chaudfontaine, Belgium

Chaudfontaine is a Walloon municipality located in the Belgian province of Liège. As of January

1st,2006 Chaudfontaine’s population was 21,012.

Chaudfontaine WaterDiscovered in 1240 Chaudfontaine’sdrinking water is very well known in

the countries where it is distributed.

Chaudfontaine water is described as“a unique thermal hot mineral water.”

The water travels 1 mile through rocklayers for about 60 years before reaching the surface.

Chaudfontaine Water• It has been sold and traded under many

different names.

• It is currently sold in: BelgiumFranceLuxembourgThe Netherlands

• In 2003 purchased the

brand.

Chaudfontaine Variety

Chaudfontaine premium water is available in stilllightly distilleddistilled

In glass and plastic bottles in 4 different sizes.

Market ShareThe total bottled water marketgrew 2.8% in Belgium between 2001 to 2003, the Chaudfontainebrand registered 3.4% growth in the same period.

Category growth in Belgium between 2004 and 2006 was 1.4%.Chaudfontaine surpassed that with 5.7% growth.

It is the growing lead of its category since 2004.

Why Introduce Chaudfontaine to the USA?

In the venues suggested in our Sales Promotion plan, Chaudfontaine will do well in the US market. Penetrating

this market would be easy as Chaudfontaine is a Coca-Cola product. Coca-Cola has strong, established distribution channels, as well as a positive brand image in the US.

SWOT AnalysisStrengths:

•Exclusive bottle design

•Unique source and high quality taste

•Owned by the Coca-Cola company

•Water industry is experiencing an increase in sales

Weaknesses:

•Economics crisis in the U.S: People will be less likely to spend a lot on water

•Brand name is difficult to pronounce which may effect liking of the product

Opportunities:

•Easily promoted as a luxury fashionable product in the US

•The three versions offer great variety

•Lack of category leadership

Threats:

•Water is free.

•Consumers may associate the product with Coca Cola which can take off the luxury appeal of the brand.

•The demand for a premium water product is not clear.

Target Market

New RichDemographics• Males & Female 21-35• Lives in major metropolitan

area • Successful

Psychographics• Trend-oriented • Lots of disposable income

Old RichDemographics• Male & female • 50-70• May or may not be married• Has children and or grandchildren

Psychographics• Possibly retired• Enjoys the finer things in life• Frequents luxurious restaurants

TravelersDemographics• Male & Female professional 25-55• Multiple residences in affluent

neighborhoods

Psychographics • Business owners or top level

execs • Always travels first-class• Has the newest gadgets, uses social

networks and social media tools

Target Distributors

Target Distributors

High-end luxury companies. That service individuals in our target market and are operated nationally - target cities include, but are not limited to:

• New York• Miami• Los Angeles• Las Vegas• Chicago• Washington D.C.• Aspen• West Palm Beach

• Marquis Jets/NetJets

• Crystal Cruises

• Charter World

• The One Group

• Thompson Hotels

• SOHO House

• Gourmet Groceries

Target Distributors

Objectives

Sales Force Objectives• Sell the maximum number of cases of water

in the first quarter; at least a hundred casesper sales rep

• Throughout the year, urge sales force to findnew high-end distributors and sell to them

• Reach a maximum number for annual sales

Trade Objectives

• Successfully introduce Chaudfontaine to the U.S. market during the Summer of 2011.

• Present it as a luxury brand of water, in the major U.S. cities where the distributors provide service.

• Gain 2.5 % market share within a year by offering trade discounts and promotional offers

Consumer Objectives

• Acquire favorable image amongst target groups by creating a corporate social responsibility program.

• Get those in target markets to request Chaudfontaine water while out about town.

 • Get those in the target markets to purchase

Chaudfontaine water for their homes. 

Strategies

Sales Force Strategies

To incentivize our sales force to reach our objectives we will award the following:

• A trip for two to Chaudfontaine, Belgium.

• A weekend getaway to partner hotel.

• A bonus equal to 10% of their annual salary.

Trade Strategies

Brunch with Chaudfontaine

• Host a brunch in

each target city

• Put on introductory

presentation

• Prepare order forms

Business Card Water Bottle

• Provide sample Chaudfontaine water bottles with contact information for a salesperson at events

• Business card peels off to save

Trade Deals

Introductory Case

Sweepstakes

Trip to Chaudfontaine • All-inclusive trip to Chaudfontaine, Belgium + spa

services• Tour of Chaudfontaine plant, headquarters, and

town• A three-night four day trip to the city of your

dreams, hotel and airfare and $500 in cash. • Place advertisement in magazines

Consumer Strategies

Sampling• High-end gourmet local food stores:

– Citarella and Gourmet Garage in New York– Epicure in Miami– Bristol Farms in Los Angeles– Las Vegas Gourmet in Las Vegas– Fox & Obel in Chicago– Vals Gourmet in Aspen– Dean & Deluca Nation and Saks Fifth Avenue nation-wide

Coupon

• Coupon for $1 off six-pack of Chaudfontaine water

• Distributed via direct mail targeted to wealthy neighborhoods in major metropolitan areas

Be Photographed With Chaudfontaine

Corporate Social Responsibility

• Set up a Facebook fan page www.facebook.com/pages/Chaudfontaine

• For each fan photo uploaded donate $1 to non-profit partner, the Haiti Water Project.

• Consumers share photo via Facebook

Be Photographed With Chaudfontaine

Promotion Plan Timeline

June 15th 2011 Sales force contests are introduced early to entice. First winner determined in August 2011

June 15th 2011 Sales force contests are introduced early to entice. First winner determined in August 2011

September 2011-Buying Allowance is introduced.

September 2011-Buying Allowance is introduced.

December consumer contest sculpture in the park Win a trip for Valentines Day 2012

December consumer contest sculpture in the park Win a trip for Valentines Day 2012

April 2012- Be photographed with Chaudfontaine Strategy is introduced.

April 2012- Be photographed with Chaudfontaine Strategy is introduced.

June 2011June 2011

June 2012June 2012

Brunch with Chaudfontaine on July 15th, 2011. Business card bottles will be handed out.

Brunch with Chaudfontaine on July 15th, 2011. Business card bottles will be handed out.

May 2012-Off Invoice Allowance is introduced.

May 2012-Off Invoice Allowance is introduced.

June 2011-A template sales sheet is prepared for the Sales Force. Free case offer is introduced at every sale rep and distributor meeting.

June 2011-A template sales sheet is prepared for the Sales Force. Free case offer is introduced at every sale rep and distributor meeting.

October 2011-Distributor sweepstake is introduced

October 2011-Distributor sweepstake is introduced

Coupon Drop December 2011 Exp March 2012

Coupon Drop December 2011 Exp March 2012

August- Sampling during the stores busiest hours until supplies last.

August- Sampling during the stores busiest hours until supplies last.

June 2012- Determine last Sales Force contest winners.

June 2012- Determine last Sales Force contest winners.