Market Targeting

Targeting Strategies Used in Global Markets

Due to the nature and the key concept of Veen Water, the targeting strategy  should be concentrated marketing. Concentrated Marketing is a strategy whereby a product is developed and marketed for a very well defined and specific segment of the consumer population. Concentrated marketing is particularly effective for small companies with limited resources because it enables the company to achieve a strong market position in the specific market segment it serves without mass production, mass distribution, or mass advertising.

Geographic segmentation

From the population perspective, the largest two cities are Riyadh the capital of Saudi Arabia with a population of over 5,3 million and Jeddah with over 3,4 million  people. Considering the income factor, we conclude that Riyadh and Jeddah might be our best target market. 

Source: http://www.payscale.com/research/SA/Country=Saudi_Arabia/Salary#by_City

              Central Department of Statistics & Information 

               http://www.cdsi.gov.sa/english/

Demographic segmentation:

Age: Since Veen Water stands for a healthy and high quality life style, and it can be the pursuit for customer groups without specific age limitation. Thus our target customers’ age range various from young people to the senior ones.

Sex: There is no requirement for gender.

Psychographic Segmentation:

Occupational: As a luxury bottled water brand, the price level of Veen is about 30-40% more expensive than the leading premium product. Our customers must have a strong purchasing power, thus we target at middle and upper class which include royal families, celebrities,  artists, high income tourists, government employees, military officers and businessmen.

Behavioral Segmentation:

A major challenge for Veen is to expand its brand awareness and further increase customer loyalty.  We target at first time users (eg. customers accommodate at a 5 star hotel and first time acknowledge Veen while dinning) as well as regular users who already encompass a relatively high degree of brand loyalty.

Target: five star hotels, high-end restaurants, night clubs, customers with high life quality requirement

Considerations in selected target markets

It’s sizable enough to be profitable given operating cost.

It’s growing. The GDP growth rate, purchasing power and tourism in Saudi Arabia is increasing year by year.

It’s not already swamped by competitors, or there is a way to stand out in a crowd. Veen's main competitors in the market are Groupe Danone (14.1%), Nestle S.A. (13.6%), The Coca-Cola Company (8.4%), and others (64%). Even though Veen has a weaker position considering company size and barging power, the quality product with low mineral content and Finnish souring differentiates it from competitors.

It’s accessible. Accessibility, or the lack of it, could include geographic accessibility, political and legal barriers, technological barriers, or social barriers. In Saudi Arabia, Foreign companies are able to access the market without local partners in most sectors and there is no minimal capital requirements for establishing business in most cases.