Brand management Group 2 Section A

Case: Harmonie Water: Refreshing the World Naturally

PART 1
PROBLEM STATEMENT
The marketing director of one of the world’s leading packaged drinking water brands
(Harmonie Water) hopes to establish a global identity for the brand. Comeau, the marketing
director needs to decide whether to move ahead with the strategy or not in the face of
resistance from country managers.

Case Analysis
Summary
Global brand recognition would be beneficial in the US since it would assist tourists
comprehend what Harmonie water represents and would clear up any doubt in their minds.
After doing research, Project Unify came to the conclusion that the brand should emphasise
"revitalising" and "refined" in its message and advertising.
Project Aqua also conducted research to find out what customers think of when we use the
words "revitalise" and "refined."
The majority of country managers are against the global brand strategy because they think
that because every market is different, a one-size-fits-all strategy will not be successful.
While consumers in developed countries used bottled water as an alternative to unsafe tap
water, consumers in developing countries drank it to avoid sugary drinks.
The market's premium segment was expanding as a result of new market segments like
"enhanced/water plus."

SWOT Analysis
Strengths Weaknesses

A 3% drop in sales volume in 2015.

Strong presence in dominant regional Low market share in Middle East and North
market America
Sold in over 130 countries with sales of $7.1
billion.
A tailored marketing strategy in order to
cater to local needs
 Opportunities Threats

A rise in the premium segment's

consumption brought on by Saturated market
enhanced/water plus. Competition from global players
A 33% increase in the bottled water
consumption from 2010 to 2015.

Recommendations
While there is resistance from several country managers, Comeau should go ahead with the
strategy of establish a global identity through global advertising campaigns. This would save
advertising cost as well as improve the advertising quality. The theme used for advertising in
international markets should be separate for the refined and revitalizing aspect. Seasonal
packaging should be used for the purpose of increasing trials and as a result increasing sales.
The different brand attributes should however remain same across different markets. In
order to differentiate itself, they should focus on innovation, sustainability and
performance.

PART 2
Industry analysis
The bottled water industry has grown significantly in recent years due to increased health
awareness, convenience and improved product quality. The leading brands in the global
market include Nestle's Pure Life, Danone's Evian, Coca-Cola's Dasani, and PepsiCo's
Aquafina. Some of the key trends in the bottled water industry include:
Growing demand for premium bottled water: Consumers are increasingly looking for high-
quality, pure, and healthy bottled water options.
The growing popularity of flavoured and functional water: The demand for flavoured and
functional water, such as infused water and sports water, has increased, as consumers look
for more variety and health benefits from their bottled water.
Expansion into emerging markets: The bottled water industry is expanding into new
markets, particularly in Asia and Africa, where increasing urbanization and rising disposable
incomes are driving growth.
Competition from cheaper alternatives: The bottled water industry faces competition from
cheaper alternatives, such as tap water and bulk-packaged water, which can be more
affordable and more environmentally friendly.
Overall, the bottled water industry is expected to continue to grow in the coming years,
driven by the increasing demand for healthy and convenient beverage options, as well as
new innovations and product offerings.
 Market share by Volume

5% 4% Nestle Water
7% Niagara
Coke(Dasani)
7% 39% DS Waters
Crystal Geyser
8% Pepsi (Aquafina)
Others

30%

Global Growth rate of bottled water Consumption

Asia

Middle east

Africa

Australia

Latin america

North America

East Europe

West Europe
0 2 4 6 8 10 12 14

Indian bottled water industry

The bottled water industry in India is one of the fastest-growing industries in the country,
with an increasing demand for clean, safe and convenient drinking water. The industry has
seen substantial growth in recent years, driven by factors such as increasing urbanization,
rising health consciousness, and growth in disposable income.
The Indian bottled water market is highly competitive, with a large number of both national
and international players. The leading brands in the market include Bisleri, Kinley, Aquafina,
and Rail Neer. The industry is also characterized by the presence of several regional players
and local brands, that cater to the specific needs and preferences of consumers in different
parts of the country.
The industry is highly regulated, with several government agencies responsible for
monitoring and enforcing standards for the quality and safety of bottled water. This has led
to the adoption of modern technology and best practices for water treatment and bottling,
which has helped to improve the quality of the product.
The industry is expected to continue to grow in the future, driven by factors such as
increasing health awareness, urbanization, and the growing demand for convenient and safe
drinking water. However, the industry faces several challenges, including the increasing
costs of raw materials, competition from other packaged drinks, and concerns over the
environmental impact of plastic bottle waste.
Overall, the bottled water industry in India presents a strong growth opportunity, with a
large and growing market and a strong demand for clean, safe, and convenient drinking
water. Companies that are able to effectively meet the needs and preferences of
consumers, while ensuring the quality and safety of their products, will be well-positioned
to succeed in this dynamic and growing market.

Latest Trends in the Bottled Water Industry

1) Consumers are willing to pay more for premium bottled water products, which are
perceived as healthier and of higher quality.
2) Companies are focusing on reducing their environmental impact by using sustainable
packaging materials and implementing environmentally-friendly practices.
3) There is a growing demand for smaller and more convenient packaging sizes, such as
single-serving bottles and on-the-go packs.
4) Consumers are looking for bottled water products that offer added health benefits, such
as high mineral content, electrolytes, and vitamins.
5) Companies are introducing new flavours, functionalities, and packaging designs to stand
out in the crowded bottled water market.
6) Direct-to-consumer sales are becoming more popular as companies bypass traditional
retail channels and sell directly to customers online.
7) Companies are offering home and office delivery services to make it easier for consumers
to access premium bottled water products.

Brand elements of the bottling industry

Product: The quality and purity of the water is a key elements in the bottled water industry.
Consumers are looking for water that is free from contaminants and tastes good. The
packaging, size and type of bottle, as well as any unique features such as added minerals or
flavours, also play a role in the product's appeal.
Packaging: The design and colour of the label, bottle shape and materials used, and eye-
catching graphics and images are all important aspects of the packaging. The packaging
needs to be attractive and eye-catching to grab the attention of consumers in a crowded
market. It should also be functional and easy to use, with clear labelling and information.
Brand Name: A unique and memorable brand name can help a bottled water company
stand out in the market. They have displayed to different geographical catering area
differently.
Tagline/Slogan: Harmoine has made sure to keep the tagline/ logo classy and premium.
Logo: A logo is a symbol that represents the brand, and is usually in the form of a stylized
image or lettering. The logo should be simple, recognizable, and memorable, and convey the
brand's personality and values.
Marketing and Advertising: Before being active in the market they have used country’s PCC
to gauge the maturity of the market. They have positioned Harmoine as premium water
instead of standardizing it.
Customer Service: Good customer service is crucial for building customer trust and loyalty.
Companies should have responsive and helpful customer service representatives who can
answer questions and resolve any issues.

Futuristic Innovation and Recommendations for bottled water

The bottled water industry is constantly evolving and seeking new ways to meet the
changing needs and preferences of consumers. Some potential areas of innovation in the
industry include:
1) Sustainability: Companies can focus on developing more sustainable packaging
materials, such as biodegradable or recyclable plastics, on reducing the
environmental impact of bottled water. They can also invest in initiatives to conserve
water resources and reduce waste.
2) Health and Wellness: Consumers are increasingly interested in products that
promote health and wellness. Bottled water companies can leverage this trend by
offering water infused with vitamins, minerals, and other health-promoting
ingredients.
3) Convenience: Companies can focus on making it even easier and more convenient
for consumers to access clean, safe drinking water by developing new packaging
designs and delivery methods. For example, companies can explore offering
subscription-based delivery services or developing new forms of packaging that are
more portable and convenient for on-the-go consumers.
4) Technology: Companies can leverage technology to improve the quality, safety and
sustainability of their products. This can include the use of advanced water
treatment methods, such as UV disinfection or reverse osmosis, and the
implementation of tracking and traceability systems to ensure the quality and safety
of the water.
5) Customization: Companies can offer consumers the ability to customize their water
experience by offering a range of flavours, minerals and other ingredients to add to
their water. This can help to meet the needs and preferences of different consumers
and provide a unique and differentiated product offering.