Nestlé waters

Marion DUCLAUX - Adrien DAMEZ - Jules CLEMENT - Laurent CHADIAN - Vincent DI LEONE

Customers, Value and ProfitabilityGabrielle Pinchaud

NESTLÉ WATERSCASE STUDY N°1

J’suis pas chaud

lundi 21 novembre 2011

La Subitudine

MARKETKEY FIGURES

NESTLÉKEY FIGURES

BRANDING STRATEGY

AGENDA


MARKETKEY FIGURES

MARKET VOLUME // MARKET VALUE // COMPETITION // PORTER’S 5 FORCES SCHEMA

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FRENCH BOTTLED WATER MARKETMARKET VOLUME (2010)

8 401

8 143

7 804

7 588

7 396 -3,10%

-4,20%

-2,80%

-2,50%

-5,00%!

-4,00%!

-3,00%!

-2,00%!

-1,00%!

0,00%!

6 800!

7 000!

7 200!

7 400!

7 600!

7 800!

8 000!

8 200!

8 400!

8 600!

2006 2007 2008 2009 2010

MILLION LITERS! Growth!

Million liters Growth

Source :


FRENCH BOTTLED WATER MARKETMARKET VALUE (2010)

3 850

3 787

3 698

3 645 3 597 -1,60%

-2,30%

-1,40% -1,30%

-3,00%!

-2,00%!

-1,00%!

0,00%!

3 450!

3 500!

3 550!

3 600!

3 650!

3 700!

3 750!

3 800!

3 850!

3 900!

2006 2007 2008 2009 2010

Turnover! Growth!

Million euros Growth

Source :


FRENCH BOTTLED WATER MARKETCOMPETION

38,10%

28,80%

24,50%

8,60% Others

Source :


PORTER’S 5 FORCES SCHEMANESTLÉ WATERS

Potential entrants

Substitutes

BuyersSuppliers FRENCH BOTTLED WATERS MARKET

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High entrance barriers

•High investment required•A mature market•A necessary «price» positioning•Importance of R&D

Low risk

New brands

A new brand or a new takedown that directly

competes with products that are positioned on the same

target

Moderate risk

Potential entrants



Potential entrants

Substitutes

Suppliers FRENCH BOTTLED WATERS MARKET

A very low negotiation power

(Purifying agents, plastic or glass bottles suppliers)

• Small size of suppliers (tough negotiation with food & beverage giants like Nestlé)• Maybe on product quality ?

Low risk


Tap water :

• Not the same use• But in many regions, tap water is as good as bottled water

High risk

Substitutes


Other beverages :

• Sodas/Juices are becoming more and more «healthy» oriented.

Low risk


Distributors

• Bottled waters producers have to negotiate with main distributors which are fighting to lower the prices

Potential entrants

Substitutes

BuyersFRENCH BOTTLED WATERS MARKET

Consumers

•Consumers have a large choice available•Importance on differenciation•Customer loyalty is a key point

FRENCH BOTTLED WATERS MARKET


FRENCH BOTTLED WATERS MARKET

High Internal competition

IMPORTANT FIXED COSTS

MATURE MARKET

LOW PRODUCT DIFFERENCIATION

INDUSTRIAL GIANTS

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SWOT

Strengths Weaknesses

• Market leader (World & France)• Well developed quality process• Strong Research & Development • Fast moving consumer goods•

• Products are more expensive than competitors products• Substitute products (tap water)• No “star” product •

Opportunities Threats

• Buyout of small brands• Creation of new brands• Innovation of products• Mature and stable market •

• High price of products • Development of store brands and first price products• High level of competition• Innovation of competitors• Development of quality norms •


NESTLÉ WATERSKEY POINTS

KEY FACTS // GLOBAL STRATEGY // COMEPETITIVE POSITIONING // SEGMENTATION // MAPPING


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

-20%A sustainable policy : non sustainable activitiesby 2012.

(2010)lundi 21 novembre 2011

-20%A sustainable policy : non sustainable activitiesby 2012.

packaging

-19%Nestlé Waters has reduced packaging weight per litre produced by 19% between 2005 and 2010

energy

-22%

Nestlé Waters has reduced energy consumption per litre produced by 22% in its factories between 2005 and 2010.

water

-34%

With 0.65 L additionnal water used to produce one liter in 2010, Nestlé Waters has reduced its water use ratio by 34%.

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NESTLÉ WATERS COMPETITIVE POSITIONING

1 2 3 4 5

MARKETING •  Range!•  Market share!

PRODUCTION •  Productivity!•  Capacity!•  Localization!

R&D •  Budget!•  Potential!

FINANCE •  Range!•  Market share!

HUMAN RESSOURCES •  Range!

low high

Analyse based on consumer value, know-how, ressources required at each step of the conception – manufacturing – distribution process.

Key Success Factors Nestlé Waters

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DebtsFinancial Capacity

Internal organization


PRODUCT SEGMENTATION

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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MAPPINGNature

Science

Socialvalue

Individual

value


KEY FIGURES // POSITIONING // PRODUCT // PRICE // PLACEMENT // PROMOTION

BRANDING STRATEGY

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KEY FIGURES

€ 407 millions2007 turnover :

6,55% market share within Nestlé Waters

Present in 125 countries

25% on the French sparkling water market

#1 International bottled sparkling water brand


SEGMENTATION

FlavouredSparkling water

Mineral sparkling water Spring sparkling water

Sparkling water

95,81%4,19%

88,58% 7,23%

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2010, in volume


POSITIONINGHealth

On table

Pleasure

Beauty

Beneficial

Eat well

PleasureLocal

Nature

Legend

Vitality

Drug

Origin


PRODUCTConsumer experience

#1 hearing

«pshiiiit»

#2 color

green

#3 shape

sexy design

#4 taste

gaz & bubbles


PACKAGING

Perrier nature

Glass : 75 cl, 33 cl and 20 cl

Plastic : 50 cl and 1 L

Can : 33 cl

Flavoured Perrier

Plastic : 50 cl,

Eau de Perrier

Glass : 75 cl, 1 L Plastic : 1 L

Subituuuudine


PRICE

0,77€0,70€0,70€0,53€0,50€0,44€0,39€

Higher prices in SuperMarkets than HyperMarkets0.15€ / 0.20€ of difference

SUBIRE


DISTRIBUTIONRETAIL DISTRIBUTION

All kinds of bottles are present on store

Good positioning (eyes and hands level)


DISTRIBUTION CATERING TRADE NETWORK

the «carafe»High competition with

50%Water represents of non alcoholic sales in restaurants

Eau de Perrier (1 L & 50 cl) is the 4th sold water

Other ways of distribution are : Automatic distributors

Bakeries...


COMMUNICATION

TARGET : 18-35 ANS

• Advisors • Active audience on the website

GOALS

•Reinforce the notoriety•Make the target younger•To win new customers who look for new pleasure without sugar excess•Develop the link the brand and the customers

STRATEGY

•Originality and conviviality •Become a « pleasure source » instead of being a healthy water as their competitors

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COMMUNICATION

Medias

• TV• Internet : e-mailing• Club Perrier

Non media

• Touch point advertising in Catering Trade Network• Sponsoring : Rolland Garros • Promotionnal products• Flyers


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")


Marion DUCLAUX - Adrien DAMEZ - Jules CLEMENT - Laurent CHADIAN - Vincent DI LEONE

Thank you for your attention

NESTLÉ WATERSCASE STUDY N°1


Nestlé waters

Business

Transcript of Nestlé waters