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Micro Analysis of Bottle WAter

Micro Analysis of Bottle WAter

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Published by: priyank shah on Apr 28, 2009
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02/01/2013

Player

Brand Name

Market share

Relative market

S.V. INSTITUTE OF MANAGEMENT, KADI 2007-09

94

MANAGEMENT RESEARCH PROJECT II ON “AAVA BOTTLED WATER”

share

Parle

Bisleri

40%

1.60

Coca Cola

Kinley

25%

0.63

PepsiCo

Aquafina

10%

0.25

Tata

Himalayan

8%

0.20

Aava

Aava mineral water0.15%

0.00375

(Source:- http://www.gits4u.com/water/water16.htm)’

Aava’s position and its strategy:-

From the above BCG matrix, we can identify the situation where Aava will plot in the
Question mark. Under this position, the bottled water is in the growing market but have low

S.V. INSTITUTE OF MANAGEMENT, KADI 2007-09

BCG MATRIX

95

MANAGEMENT RESEARCH PROJECT II ON “AAVA BOTTLED WATER”

market share and still buyers yet to be buy it. The demands will very high but low returns
due to low market share. Due to late entry Aava have to face this kind of problem.

Aava should take different kind of strategy just like:-

Aava should take the advantage to get the market having the special natural mineral water
and they need to increase their market share quickly. The best way to handle the question
mark situation is to invest heavily in the business. As Aava is natural mineral water, they
must have to focus on positioning strategy. They had given the distribution ship to Trader’s
Inn but if possible they should focus on their own distribution channel.

Recommending new strategy

•Focus on product positioning for capturing more market share.

•Make offensive strategy to build market share.

•Serve niche market to compete with regional player

•Grow via merger or Acquisition with regional player

•Try to compete with natural mineral water player

•Brand image has significance role. So, by promoting they can increase brand

image.

Pan India Distributions

Mr. Mehta’s expansion plan is “A Pan – India distribution tops our list of priorities. Aava is
keen that it reaches all our customers, especially since it has an all India presence due to
contracts with Air-India, Spice Jet and other prestigious clients. Aava is looking forward to
put in place an efficient distribution network to fill the vacuum for good natural mineral
water felt in South and West India.

Now due to merge with Evian they get financial support and brand name of Evian. They
make agreement of Rs.20 Crore.

S.V. INSTITUTE OF MANAGEMENT, KADI 2007-09

96

MANAGEMENT RESEARCH PROJECT II ON “AAVA BOTTLED WATER”

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