Sunday, December 9, 2012

Executive Summary


VEEN Waters offers luxury bottled water, still and sparkling, providing solutions for quenching thirst and at the same time it enhances the life style of the consumers. Our clients are five star hotels, distinctive restaurants and nightclubs. VEEN is also present in a variety of events such Fashion shows, theater premiers, and exhibitions. 

Across Saudi Arabia, and mostly in the two targeted cities—Riyadh and Jeddah—the premium bottled water industry enjoys growth, e.g. 13% growth in volume on-trade sales in 2011. Other characteristics of the Saudi Arabian market that contribute to our choice are the high disposable income, easy market access for the suppliers, prohibition of alcohol consumption and a fast-expanding HORECA sector. 

While there are currently some well-recognized premium brands in the market, such as San Pellegrino, Evian, Acqua Panna, and VOSS, we consider that VEEN has those unique features, for instance the high quality of the product (low mineral content), which can conduce the creation of a competitive advantage.

VEEN’s marketing strategy is to emphasize the quality of the water and the country of origin, Lapland, Finland. The first step and the most important for the establishment of VEEN Waters in Saudi Arabia is the pursuit of a strong local distributor who will be able to reassure the exclusivity of VEEN as a luxury bottled water in its product portfolio. 

The price is going to be set at a high level and more specifically around 30-40% higher than the price of the leading premium brand in the market. This is mainly because of the tight margins that VEEN experiences due to the expenses for the bottles and the high margins that distributors desire. Based on the size of our market, our sales for the first year are estimated to be 8% of the global sales. 

We want to express our appreciation to the company VEEN Waters, Mr. Nikkila and Mr. Gupta, for their cooperation and graciousness. We also want to thank our loyal readers and consultants Carita, Marianna, Polina, Jesus, and Antti for your valuable comments and suggestions.

Action Plan


Campaign title
Entering into Saudi Arabia
Campaign duration
1 year
Campaign objectives
To open the market of Saudi Arabia and support implementation
Marketing activity
Resources required
Staff responsible
Start date
1.      Market research
·           Establish research team
·           Set the goal
·           Collect the  related data
·           Analysis the date
·           Final report
Collection of related data, local partner, market researcher
Research team
01/01/13
2.      Contact the distributor and establish relationship
·         Analyze the strength of each  distributor
·         Choose the best one
·         Establish long-standing relationship
Information of partner, network
Director of Operations
01/02/13
3.      Decide marketplace
·           Analyze marketplace
·           Cooperate with local partner and  distributor
·           Decide target cities
Result of market research, market goal
Distributor and Director of Operations
01/03/13
4.      Visit and choose local hotel and  restaurant
·           Choose  hotel and  restaurant based on market research
·           Definite  economic profit and responsibility
·           Establish long-standing relationship
Hotel background information
Distributor and VEEN representative
01/03/13
5.      Prepare logo and label
·           Decide the design requirement
·           Contact designer
·           Decide design alternative
·           Manufacture new label
Designer
Designer and production facility worker
01/04/13
6.      Set a price
·           Analyze the results of market research
·           Combine with market goal
·           Decide the price
Income level, purchasing power
Sales Director
01/05/13
7.      Finalize contract with distributor
·         Specify distributor’s responsibilities
·         Includes wholesale price, specific hotels and restaurants where it will be distributed, inventory management, transportation agreement
Negotiation with distributor, lawyers’ advice
Distributor and Director of Operations
01/06/13
8.      Transport the products
·           Analyze the convenience and cost
·           Choose transport vehicle
·           Schedule the shipping time
Related  information of transportation
Director of Operations
01/11/13
9.      Market entry
·         In coordination with SAUDI HORECA 2013 exhibition
Staff present at exhibition
Sales director
01/12/13
10.  Promotion of products
·           Using popular events, such as exhibitions, sports, and religious events 
·           Cooperate with  airline companies
·           Hotel exhibitions
·           Using wedding planners
Related companies,
financial support, social relationship

Sales director and distributor
01/12/13