Customer And Competitive Analysis Icelandic Glacial Marketing Essay

Customer And Competitive outline Icelandic crisp Marketing canvasIcelandic flash-frozen is a Brand of Bottled Natural Spring Water from Olfus, Iceland. This company was established in the year 2004 and its headquarter is in Hlid arndi, Olfus, Iceland. The company is a restore proprietor company and dealing with the intersection pointion and selling of the bottled pissing across the world. With its initiation, the company started the phone line in Iceland only and in the year 2005, it started exporting the brand bottled weewee to various other countries equivalent USA, Germany, France, Mexico, UK and Canada. The company has in truth strong credentials and the bottling plant and the product finished by the company is accredited by NSF International.According to the company, customers buy Icelandic rimed as their best choice because of the source of unpar solelyel purity which is free of contamination, soaring whole step bottle name which is absolutely recyclable it is co nsidered to be affordable luxury, it is environmentally friendly and last, but non the least, it is NSF certified.Target foodstuff for the product/service in the home trade brandHome merchandise for Icelandic gelid Packaged alcoholism water is Iceland from where the product is produced. Target commercialise for Icelandic nippy is mainly schools and college canteens, various offices and households (especially large bottles), several grocery stores, etc. If segmentation of the seat market of Icelandic Glacial is done, there atomic number 18 mainly three segments that can be repose clearly. These are as followsForeign tourists These are the battalion who unfeignedly do not like to crapulence the blueprint water from anywhere because of the health precaution purpose.Domestic tourists These are the people who really do not waste time in finding water from here and there and would spend cash and devote their time in roaming around.Health conscious people and fashionab le people These are people who do not like to drink normal water ever and give priority to mineral water. Mineral water has also become a brand recognition as several people consider it a symbol of noble class.Especially, people of age group 20 to 35 years is the main target market for Icelandic Glacial in the home rustic i.e. Iceland. The main motive of Icelandic Glacial was to produce high quality bottled water not a low quality product which most of the other companies produce.Brief summary of the products/services competitive strategy, marketing program, and positioning in the home marketCompetitive strategies of Icelandic GlacialCompetitive strategies of Icelandic Glacial include a high focus on packaging quality and a cautious placement of the product as a preferred brand in the market. However, the company had a spoilt image in other countries, not because of its product quality but a spill-over effect of the bad name associated with Iceland. This had given a large advanta ge to the competitors. To overcome this problem, the company came up with a different bottle with an art use on it and it really worked. It looked as if there is an ice formation on the bottle which really attracted the people. It created a landscape kept in the shelves of the stores just by change in the style.Marketing Programs of Icelandic GlacialIn rules of order to get an edge in the market, the owner of the company used his contacts in the business and the film industries which resulted in Icelandic water to be gratuity in every party and even at every film festivals (Birchal, 2007).Promotional tv has been on the website of the company with two very beautiful women showing the bottle of Icelandic Glacial on the main page of the website to attract customersMarketing attitude of Icelandic GlacialIcelandic Glacial positioned the packaged drinking water in the market through various successful marketing strategies. In order to position the product in the market, the company used some very powerful slogans such as Icelandic Glacial is the purest water it is eco-friendly it is certified by NSF the bottles have the best physical social structure etc.Evaluation of the marketing program S.W.O.T ANALYSISThere are more of strengths of the marketing programs which have been utilize by the company than its weaknesses.StrengthsIcelandic Glacial is the purest bottled water in the worldIt is eco-friendly and has zero carbon footprintsIt is certified by NSFthe bottles have the best physical structure and are recyclable connection has gained recognition in the global marketPeople got very much(prenominal) attracted by the bottle designsIt was seen in the film festivals which really helped a lot to increase the sales of the productWeaknesses bon ton had to spend a lot of money to gain the recognition in the marketCompany has not established vast and firm global presenceCompany has no presence in the UAE beverage or bottled water market.OpportunitiesUAE is a very r ich country with very high per capita incomeLarge and very active demand for quality bottled waterUnsaturated market expansion possibilities to other GCC countriesThreatsCompetitors in the market size and strengthGovernment protection of domestic suppliersCompany Analysis for ENTRY marketAnalysis of the companys capabilities in entering new marketIcelandic Glacial is marketed and distributed in large countries such as the USA, Germany, France, Mexico, UK and Canada. The company entered US in the year 2005 where after being a bad nature of water being associated to Iceland, company made a stunning reputation. At present scenario, American company, Anheuser-Busch has around 20 percent stake in Icelandic Glacial.Icelandic Glacial is capable of producing 30,000 bottles in an hour. A separate type of distribution takes place in Canada, UK and Netherlands. Recently, Icelandic Glacial entered into the market of China. This packaged drinking water is known for its purity and zero carbon f ootprints and very much renowned in Europe and North America. It is now entering into the beverage market of China to increase its footprint all across the world (Icelandic Glacial Enters China Beverage Market, 2010). China Water and Drinks is the company which is the subsidiary of a US company Heckmann Corporation Inc. which is taking the responsibility of distribution of Icelandic Glacial in China. It is distributed to all the mentioned companies by various very renowned companies in the firmament of water supplies.With such a huge and increasing global distribution and recognition as the purest bottled water in the world with zero carbon footprints, Icelandic Glacial has the capable of launching its product successfully in the UAE which could prove a big market for Icelandic Glacial. UAE, being one of the fast exploitation countries of the world can easily welcome the product with a huge sale all across the country. There is a huge opportunity for Icelandic Glacial to enter the UAE beverage market and compete with the existing products in its field. Icelandic Glacial could find UAE to be a very successful place like the USA.Identification of the business modelBusiness Model which can be used by Icelandic Glacial for expanding its business in UAE is statistical distribution Business Model in which the company which has started its business from Iceland, and expanded its business to various countries of the world by distributing its product in the foreign market. UAE will be the next foreign branch of the company in which it will expand its distribution services. Main cost drivers for Icelandic Glacial in UAE for setting up its feet in the market could be huge promotional cost, plant setting up cost, cost of distribution channels, etc.Customer Analysis for ENTRY marketIdentification of 360-degree profile of customer segmentsThere are almost every company which has its office in UAE and huge number of hypermarkets and shopping complexes.Regular peopleForeig n touristsCustomer CharacteristicsDemographics7.5 Million10 Million per yearPsychographicsTreat it as necessity and many treat it as hygienicDo not trust on regular waterLocationUrban as well as RuralUrban and sub urban bargain forCharacteristicsPurchase OccasionVery often (purchase it as a regular product)Almost regularBenefit SoughtValue in the marketValue in the marketProduct Usagehygienic concernsNecessary ProductEvaluation of potential segments and selection of target marketPotential Segment for Icelandic Glacial in UAE bottled water industry could be huge numbers of foreign tourists coming, increasing population in UAE. College and school canteens, health conscious people, offices, households, etc can be considered as the target market for the company.Volume potentialBottled water business in the country accounts for more than 40 percent of the total drinking water which gives up a business of AED 570 million (UAEs Bottled Water Industry Set to Sustain Growth by Boosting Capac ity, 2009). Demand for drinking water in the country is going to increase in future due to increase in population and tourism. Present companies, for example, Al Ain is planning to expand its business in UAE. This means that there could be a huge projected growth for Icelandic Glacial in the country once it finds a good place in the market.Most of the well established brands in the country produce 15,000 of 1.5 l bottles in an hour. Thus, we can assume that at the starting we could produce 5,000 to 7,000 and in future could easily compete with the competitors.Margin potentialThe industry is not that price sensitive but price should not be very high or very low. It should be kept as the industry average. The industry average for 1.5 liter packaged drinking water in UAE is between AED 5 to AED 7 for a 1.5 liter bottle.Persuasion potentialThere are a huge number of competitors in the market like PepsiCo Aquafina, The Coca sens Company Kinley, Nestle Purelife, Masafi mineral water, Al Ain Mineral water, Gulfa, etc which absolutely satisfy the needs of the customers with Al Ain being the topper in the listen with 40 percent appoint in the market.I would highly recommend Icelandic Glacial to enter into UAE market because there is high need of water market in the country and this is also a fact that almost 40 percent GDP of UAE is based on this business. In spite of the fact that there is a high level of competition in the market, but still market is so high that surviving is very easy.But in order to gain a considerable amount of market share, it is necessary for the company to pursue the customers to buy the product which could be done by high level of promotion of Icelandic Glacial in the local market as taglines like the purest water on earth, etc.Identification of value drivers for the target marketBenefits UAE is a country where there is a huge need for drinking water. It is a market which earns the highest per capital income from packaged drinking water as compared to any other part of the world.Point-of-resistance There will be huge competition in the market. Almost each and every international brand is present and along with that there are several big and small local brands as well.Industry and Competitive Analysis for ENTRY marketIndustry abstractProduct i.e. Bottled water market is in the matureness stage and this is the reason that Icelandic Glacial is confident enough to enter into the market and get a considerable amount of success. But as the product is in maturity stage it is really difficult to gain a huge amount of market share as there are still companies who have made their brands for the past many years.Porters Five Force ModelBargain power of the Suppliers It only depends on the geographical location of the country. There is a huge problem of drinking water in the country as there is inadequate bring out of water.Substitute Product Cold drinks, tea, coffee, juice, etc. can be considered as the substitute productsBar gain power of Buyers Customer has a lot of choices in the market as there are a lot of brands of packaged drinking water exist in the current marketNew Entrants Market is in its maturity stage, hence there could be just entrants in the marketRivalries There is an oligopoly competition in the market as the market is in maturity phase (Bottled Water Industry and Competitive Environment Analysis, 2009).Identification of major competitors and the competitive strategy used by eachMajor competitors for Icelandic Glacial in UAE could be PepsiCo Aquafina, The Coca Cola Company Kinley, Nestle Purelife, Masafi mineral water, Al Ain Mineral water, Gulfa, etc.Strategies Used by eachPepsiCo Aquafina This Company uses natural and underground water which makes it different from the other brands available in UAENestle Purelife Purelife is imported in the country from Saudi Arabia and it promoted with a statement on it label that Purelife is water coming from natural spring and deep well.Masafi mine ral water This is a local company in UAE which is situated in reticular activating system Al Khaimah. It positions itself in the market by its superior quality product with ISO 9002 and ISO 90012000 certifications.Al Ain Mineral water Clear leader in the cities like Abu Dhabi and Al Ain with more than 40 percent share in the market. It positions itself with great quality product and high customer loyalty.Marketing audit of competitorsAnalysis of Marketing ProgramThere are several marketing programs done by various brands in the country. For example, Al Ain, which is the brand with maximum percent share in the market, is sponsoring Al Ain International Aerobatics Championship of 2008 (Al Ain Mineral Water, proud sponsor of the Al Ain Air Show introduces bottle recycling programme , 2008). Misafi Mineral Water came up with a flavored mineral water in order to give customers a combination of sweet drink and pure water. There are some other efforts made by several companies for establis hing their brands in the market through television ads, newspaper ads, banners, etc. alone the market programs done have succeeded only because of the fact that there is huge need of drinking water in the country.Companys Ability to Support Marketing ProgramsIcelandic Glacial is a company which promoted its water in Film award function in the starting of its business in US. This totally implies that Icelandic Glacial is capable of doing its marketing program in UAE due to the huge organizational as well as financial infrastructure available with the country.Positioning of competitors product/brandThere are a very large numbers of competitors in the market but in spite of that there is a huge scope for Icelandic Glacial to sustain in the market because of the fact that need for this product in UAE is huge. At present, there are almost all the international big banners in the field of packaged drinking water present in UAE with enormous number of local manufactures. Among them Al Ain is a company which takes the maximum position in the market with 40 percent of the marker share.Assessment of industry attractiveness and competitors strengths and weaknessesUAE is a country which is very much attractive for a business of packaged drinking water. According to some previous statistics, UAE has the highest per capita income through the packaged drinking water business. This means that market for Icelandic Glacial is to a high degree certain and there is no doubt about that.Competitors for Icelandic Glacial in UAE have the strength that they are well established in the country especially Al Ain, which has huge share in the market but these companies have the weakness that there are so many companies in this industry that it could be possible that the qualities of zero carbon footprint, eco-friendliness and purity of the water could enable Icelandic Glacial to establish a niche in the market.