Sales Promotion Plan for Chaudfontaine Water

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

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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



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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.”



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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



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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


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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.



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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



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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


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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:



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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.



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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


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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


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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



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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.



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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.



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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



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http://www.globalpackagegallery.com/main.php/v/bev/bottled+water/03-Chaudfontaine.jpg.html

http://www.globalpackagegallery.com/main.php/v/bev/bottled+water/03-Chaudfontaine.jpg.html

http://www.debierschuur.be/catalog/show?id=2880

http://www.adme.ru/pack/mezhdunarodnyj-konkurs-pentawards-luchshaya-upakovka-goda-20817/

http://www.adme.ru/pack/mezhdunarodnyj-konkurs-pentawards-luchshaya-upakovka-goda-20817/

Business

Sales Promotion Plan for Chaudfontaine Water