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.
Great job team VEEN! This Executive Summary wraps you work up nicely. :)
ReplyDeleteThe action plan post was very specific too; I liked how you had put it in chronological and step-by-step order. Maybe part of the market research could be already visiting the local HORECA exhibition (year before) and then again attend the same fare if needed in the entry stage. I suggest this just because the company could find possible partners at the exhibition the first time and then attend again promoting the product itself.
It was nice to "consult" you! See you all in class tomorrow!
Carita R.