sales promotion plan for chaudfontaine water
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Sales Promotion Plan for Chaudfontaine Water Prepared By:Tomer Melman Christina PapaleEdgina Desormeau Derek MedwedTRANSCRIPT
Sales Promotion Plan for Chaudfontaine Water Prepared By:Tomer Melman • Christina Papale • Edgina Desormeau • Derek Medwed
Table of Contents
Situation AnalysisHistory ..................................................SWOT Analysis .....................................
Competitors................................Distribution...................................
Target Market.......................................Consumer ...................................Distribution ..................................
Objective & Strategies.........................Trade Objectives.........................Consumer Objectives.................Trade Strategies...........................Consumer Strategies...................
Sales Promotion Plan for Chaudfontaine Water
Prepared By:Tomer Melman • Christina Papale • Edgina Desormeau • Derek Medwed
Page 2
History
Chaudfontaine is a Walloon municipality located in the Belgian
province of Liège. As of January 1st, 2006 Chaudfontaine’s population
was 21,012. Chaudfontaine’s drinking water is one of Belgium’s most
well known enterprises, and the growing lead of its category since
2004.
Statistics obtained from Coca-Cola provide evidence to support
such a view. While the total bottled water market grew 2.8% in
Belgium between 2001 to 2003, the Chaudfontaine brand registered
3.4% growth in the same period. Category growth in Belgium between
2004 and 2006 was 1.4%. Chaudfontaine surpassed that with 5.7%
growth.
Sold in Belgium, France, Luxembourg, and the Netherlands,
Chaudfontaine water is described as “a unique thermal hot mineral
water.” It has been discovered that Chaudfontaine water travels
through rock layers at 1,600 meters for about 60 years before reaching
the surface.
Since it was discovered in 1240, Chaudfontaine drinking water
has been sold and traded under many different names. It began with
Thermale Chaudfontaine in 1924; then Cristal Chaudfontaine in 1926;
and Monopole Chaudfontaine in 1938. In 1961, it was acquired by
Piedboeuf brewery. In 1988, the Piedboeuf brewery integrated with
Sales Promotion Plan for Chaudfontaine Water
Prepared By:Tomer Melman • Christina Papale • Edgina Desormeau • Derek Medwed
Page 3
Interbrew group; all the while keeping the name Monopole. In 1997
Chaudfontaine drinking water was repurchased by businessman Abbas
Bayat, and named Chaudfontaine. Bayat sold the brand to Coca Cola in
2003.
Design
According to foodbev.com, Chaudfontaine became a pioneer in
the Coke network in 2006 by offering a newly designed glass bottle
range in three variants: still (blue label); sparkling (red label); mildly
sparkling (green label). Coca Cola describes the design as “modern
and timeless.”
Coca Cola’s challenge was to build a brand that reflects this
uniqueness. This has been achieved by stressing the core values of the
brand more, using the dove in the logo as a symbol for purity, by
launching a new bottle with a design that reflects the purity and
transparency of the water and by focusing our communication platform
towards consumers making use of the ‘connoisseurs prefer
Chaudfontaine’ tagline.”
Sales Promotion Plan for Chaudfontaine Water
Prepared By:Tomer Melman • Christina Papale • Edgina Desormeau • Derek Medwed
Page 4
SWOT Analysis
Strengths:
A bottle made of glass is more
environmentally friendly than the
plastic competitors.
The bottle’s design has an exclusive
look setting it apart from the rest of
the market.
The water source and taste are of
higher quality.
The brand is owned by the Coca-
Cola company, which gives it a
marketing and distribution
advantage.
The sparkling water industry is
experiencing an increase in sales
volume.
Weaknesses:
Economics Crises in the U.S: People
will be less likely to spend a lot of
water.
Brand name is difficult to pronounce
which may effect liking of the product.
The glass bottle is heavier than the
competition and not easy to carry.
The product is imported to the U.S
which will increase the retail price.
Opportunities
A European product can be easily
promoted as a luxury fashionable
product in the US.
The three versions still, lightly
distilled, and distilled offer variety
to the consumer.
The premium water category does
not have a clear leader. This is a big
opportunity for significant market
share.
Threats
The consumer can drink water without
paying for it.
The bottled water industry is
experiencing a decrease in sales
volume.
Consumers may associate the
product with Coca Cola which can
take off the luxury appeal of the
brand.
The demand for a premium water
Sales Promotion Plan for Chaudfontaine Water
Prepared By:Tomer Melman • Christina Papale • Edgina Desormeau • Derek Medwed
Page 5
product is not clear.
Target Market
Consumer Target Markets
#1: New Rich
Demographics: Wealthy males and females 21-35 who are successful
in the industries they work in and has a new found wealth. Lives in an
upscale neighborhood within a major metropolitan area. College
graduates with a Bachelor's degree at the minimum.
Psychographics: A trendy and fashion-forward individual whom has
an abundance of disposable income. This person spends money
frivolously on «it» items and luxury entertainment, such as high-end
getaways, upscale restaurants and nightclubs. They are health
consciuons. This individual has a personal trainer and a nutritionist.
#2: Old Rich
Demographics: Males and females 50-70, who have worked hard over
the years and achieved extreme success, and or inherited millions of
dollars. May or may not be married however, has children and or
grandchildren. This group of individuals earns $800,000 or more in
yearly income if they are not yet retired, in which case they have
millions in savings.Sales Promotion Plan for Chaudfontaine Water
Prepared By:Tomer Melman • Christina Papale • Edgina Desormeau • Derek Medwed
Page 6
Psychographics: As a retired person, enjoys the finer things in life
such as traveling privatley. Traditionally enjoys expensive restaurants
and wears luxurious clothing.
Target Market #3: Travelers
Demographics: Males and females between the ages of 25 and 55.
Has multiple residences is in affluent neighborhoods, and spends much
of their time travelling to the hippest destinations and hotels. Earns
$100,000-$500,000 or more a year.
Psychographics: These individuals own their own companies or hold
top level positions at the companies they work for. They have many
friends all around the globe and communicate mainly through their
Blackberry or iPhones. Always updated with the newest gadgets, social
networks and social media tools.
Sales Promotion Plan for Chaudfontaine Water
Prepared By:Tomer Melman • Christina Papale • Edgina Desormeau • Derek Medwed
Page 7
Target Market
Distribution Channels:
Target Distributor #1: Marquis Jets/Netjets
Manages and operates the world’s largest and most reliable private jet
fleet with the highest standards of safety, security and service. As an
owner of a Marquis Jet Card one is provided with guaranteed aircraft
availability, a team dedicated to one’s needs 24/7, access to thousands
of airports around the world, and now Chaudfontaine water.
Target Distributor #2: Crystal Cruises
A luxury cruise line featuring the two highest rated ships in the world.
Crystal Cruises is dedicated to extraordinary service, abundant space,
exceptional quality and incredible choices.
Target Distributor #3: The One Group
A high-end hospitality company that develops, manages and operates
a plethora of luxury restaurants, lounges, bars and hotels. In addition
to the well-known Gansevoort Hotel New York, The One Group owns
and operates the Gansevoort South Beach, Miami and Turks and
Caicos. In addition to the three hotels, The One Group provides
complete management and operation of all food and beverage outlets
with its 18 fashionable and dynamic restaurants, lounges and bars that
Sales Promotion Plan for Chaudfontaine Water
Prepared By:Tomer Melman • Christina Papale • Edgina Desormeau • Derek Medwed
Page 8
spread from New York, to Miami, Los Angeles, Turks and Caicos and
Las Vegas.
Target Distributor #4: Thompson Hotels
Associated with a wealthier individual due to its sophisticated and
classically cool style that is contemporary and elegant with an element
of edge and surprise. This environment is fitting for Chaudfontaine
water, which can now have a home in the Thompson’s 10 hotels within
New York, Washington D.C., Chicago and Los Angeles.
Target Distributor #5: The following Gourmet Grocery stores Citerella
Gourmet Garage, Epicure in Miami, Las Vegas Gourmet in Las Vegas,
Bristol Farms in Los Angeles, Fox & Obel in Chicago, Vals Gourmet in
Aspen, Dean & Deluca Nation wide.
Target Distributor #6: Soho House is a private members' club and
hotel located in New York, West Hollywood, and soon to open Miami.
Why Would Chaudfontaine Do Excel In the US Market?
In the right venues suggested in our Sales Promotion plan,
Chaudfontaine will do conceptually well in the US market.By
observation, Fine waters tend to do exceptionally well in the US, for
example Voss, Perrier, San Pellegrino.
Penetrating this market would be fairly easy being that
Chaudfontaine is a Coca-cola product. Coca-Cola has strong, Sales Promotion Plan for Chaudfontaine Water
Prepared By:Tomer Melman • Christina Papale • Edgina Desormeau • Derek Medwed
Page 9
established distribution channels, not to mention a positive (trade)
brand image in the US. Being a Coca-cola product Chaudfontaine has a
leg-up in the US market. However this does not mean Chaudfontaine
will be sold only where Coke and other CocaCola products are sold.
OBJECTIVES & STRATEGIES
Trade Objectives:
Sales Promotion Plan for Chaudfontaine Water
Prepared By:Tomer Melman • Christina Papale • Edgina Desormeau • Derek Medwed
Page 10
1. To successfully introduce Chaudfontaine to the U.S. market durring
the Summer of 2011 through the following:
Marquis Jets/ Netjets
Crystal Cruises
The One Group
Thompson Hotels
Soho House
Gourmet Groceries
2. Present it as a luxury brand of premium water, without directly
saying so through the brand image of the distribution channels. In the
Major U.S. cities where the businesses provide service:
New York
Los Angeles
Miami
Las Vegas
Washington D.C.
Chicago
Aspen
West Palm Beach
Tampa
3. To give the chosen distributors a sense of pride in carrying
Chaudfontaine through a promotional brunch.
4. To gain 2.5% market share within a year by offering trade discounts
and promotional offers.
5. To create top of mind awareness by offering a trip to Chaudfontaine,
Belgium.
Sales Promotion Plan for Chaudfontaine Water
Prepared By:Tomer Melman • Christina Papale • Edgina Desormeau • Derek Medwed
Page 11
Consumer Objectives:
1. Acquire favorable image amongst target groups by creating a
corporate social responsibility program and sampling.
2. Get those in the New Rich and Traveler target group to become
familiar with the brand by celebrity product placement and event
sponsorships.
3. Get those in target markets to request Chaudfontaine water at their
chosen Hotels and Restaurants due to its great taste and celebrity
appeal.
4. Get those in the target markets to purchase Chaudfontaine water
for their homes with our price discount offers, and sampling.
5. Entice the New Rich and Traveler target markets to share the
product through their eyes by creating a sweepstakes, Photo-
Chaudfontaine.
STRATEGIES
Trade Strategies:
1. Free Case offer
Do cold calls to set up meetings with a Chaudfontaine representatives.
Offer them a special edition variety case of Chaufontaine. This variety
pack is a free case and it would include the three options water options
- still, lightly distilled, and distilled. Sales Promotion Plan for Chaudfontaine Water
Prepared By:Tomer Melman • Christina Papale • Edgina Desormeau • Derek Medwed
Page 12
2. Promotional Event: Brunch with Chaudfontaine.
After initial introduction is made and we’ve a gathered a solid
prospective clientele list, we invite them to brunch hosted by
Chaudfontaine. We would put on a presentation and have order forms
ready at the event. We will host a brunch in every city where we have
a large number of clients, up to five events. They will leave with
business card waterbottles.
3. Trip to Chaudfontaine, Belgium (Sweepstakes)
To get the trade motivated, we will give away an all inclusive trip to
Chaudfontaine, Belgium. The winners get a tour of the Chaudfontaine
plant and/or headquarters, the town, and spa services.
4. Trade Discounts
Buying Allowance. Every ten cases of Chaudfontaine ordered, the next
ten cases are half-off, this way the more they buy the more they save.
Off-Invoice Allowance. In the introductory phase, for a limited time
period every case of Chaudfontaine will be sold at a discounted price.
5. For a limited time only, Chaudfontaine will buy back unsold
inventory.
Consumer Strategies:
1. Celebrity Product Placement
Reach out to firms who specialize in product placement, or the Coca-
Cola PR department to get Chaudfontaine distributed in celebrity
gifting suites and at exclusive events. For example Hollywood movie
premieres, award shows and New York, Los Angeles and Miami Fashion Sales Promotion Plan for Chaudfontaine Water
Prepared By:Tomer Melman • Christina Papale • Edgina Desormeau • Derek Medwed
Page 13
Week. As a result celebs get photographed with the product. The
image or footage gets published in major print publications and
broadcasts. Resulting in favorable image and lasting residual value
with our target groups.
2. Be photographed with Chaudfontiane
Our corporate social responsibility program, for every picture uploaded
by a consumer $1 is donated to «The Haiti Water Project» aims to
provide clean, safe water for communities in Haiti. Haiti is one of the
most water-impoverished countries in the world and after the
earthquake, there are even more challenges.
Consumers take a picture of themselves and upload it to the
Chaudfontaine Facebook page. They can share this picture on their
profile; further promoting the brand.
3. Contest
Facebook couples/fans are invited to spend a day in the park, or on
the beach creating sculptures. Doves or any of the Chaudfontaine
bottles for example, the winning sculpture wins the following
-A three-night four day trip to the city of your dreams, hotel and
airfare and $500 in cash.
4. US Open
Sponsor the U.S Open and create a stand with a “green screen.” The
green screen will have different backgrounds of the tennis players with
Sales Promotion Plan for Chaudfontaine Water
Prepared By:Tomer Melman • Christina Papale • Edgina Desormeau • Derek Medwed
Page 14
Chaudfontaine. Have attendees take their picture with the green
screen and in order to view the picture, they will have to go to the
website and type the number that they will receive after they take
their picture.
5. Sampling
High-end Gourmet local Food Store; Citerella and Gourmet Garage in
New York, Epicure in Miami, Bristol Farms in Los Angeles, Las Vegas
Gourmet in Las Vegas, Fox & Obel in Chicago, Vals Gourmet in Aspen,
Dean & Deluca Nation wide and Saks Fifth Avenue Nation wide.
-At hotels and restaurants that offer our water
-At high-end and high-profile events like US Open Tennis, US Open
Golf, Art Basel (Miami), Fashion Week
6. Price Discount
-Offer discounted prices to people using the facilities that provide
the water.
-Example: Consumers flying on Marquis Jet who like the water you
are given a coupon offering a discounted rate if they decide to
purchase a large amount of the water and have it shipped to one of
your homes. Participating Hotel guests will be made the same offer.
Sales Force Objectives
1. To sell a maximum number of cases of water in the first quarter.
Atleast a hundred cases per sales rep.
Sales Promotion Plan for Chaudfontaine Water
Prepared By:Tomer Melman • Christina Papale • Edgina Desormeau • Derek Medwed
Page 15
2. Throughout the year, we urge our sales force to find new high end
distributors and sell to them.
3. Reach a maximum number for annual sales
Sales Force Strategies
To incentivizes our sells force to reach our objectives we will award
them the following
1. The first sales rep to sell 100 cases in the first quarter wins A trip
for two to Chaudfontaine, Belgium.
2. The first sales rep to sign on two new distributors within the first
year wins a weekend getaway to partnering hotel.
3. At the end of the year the one sales associate who generates the
most sales earns a bonus equaling 10% of their annual salary.
Sales Promotion Plan for Chaudfontaine Water
Prepared By:Tomer Melman • Christina Papale • Edgina Desormeau • Derek Medwed
Page 16
Sources
http://www.chaudfontaine.nl/
http://www.adme.ru/pack/mezhdunarodnyj-konkurs-pentawards-
luchshaya-upakovka-goda-20817/
http://www.debierschuur.be/catalog/show?id=2880
http://www.globalpackagegallery.com/main.php/v/bev/bottled+water/
03-Chaudfontaine.jpg.html
Sales Promotion Plan for Chaudfontaine Water
Prepared By:Tomer Melman • Christina Papale • Edgina Desormeau • Derek Medwed
Page 17