Case Study Assignment

Course Name: Marketing Management

Formal Code: MKT 601

Case Name: - Marketing Brand Aava: Not as Simple as Water

Submitted To:
Prof Dr. Sheikh Mohammed Rafiul Huque
School of Business
United International University

Submitted By:
Student ID Full Name Section
112 163 063 Md. Rashid-Al-Mahmud
112 172 058 Md. Shahin Alam
112 181 066 Shafiqul Islam B
112 181 069 Fyaj Mahbub Rohan
112 182 012 Syed Ahmadul Haque

UNITED INTERNATIONAL UNIVERSITY

Submission Deadline: 18th December 2018

Submitted at Deadline
Contents
Section One: Brief of Case....................................................................................................................... 1
1.1. History and background of the organization in brief .............................................................. 1
1.2. Defines the main problem or issues given in the case ........................................................... 2
1.3. Situation being faced by the decision-maker in the case ....................................................... 3
Section Two: Question Answer Part ....................................................................................................... 4
2.1. Case Questions:....................................................................................................................... 4
2.2. Answer of the questions stated in the case: ........................................................................... 4
Section Three: Summary ......................................................................................................................... 8
3.1. Summary ................................................................................................................................. 8
Section One: Brief of Case
1.1. History and background of the organization in brief

Company Name : Aava Packaged Natural Mineral Water (A unit of

Form of the Organization
Incorporated
Incorporated by
Initial Investment
Quality Certificates
Location of Works
Sheelpe Enterprise)
: Private Company
: 19th October 2005
: Mr. Behram Mehta
: US$332,409
: ISI: "Bureau of Indian Standards" quality standard certifying
the water safe for consumption.
ISO 9001-2000: International Quality Management
System Standard
ISO 14001-2004: Environmental Management System
Standard
H.A.C.C.P: Hazard Analysis and Critical Control Point
: Registered Office
Sheelpe Enterprises:
2, China Garden, Netaji Marg,
Mithakhali Circle, Ahmedabad-380006.
Phone: +91-79-26401000/2286027
Fax : +91-79-26405700
Email : info@aavawater.com

Plant Address
Aava Natural Mineral Water
Near Hanuman Camp,
Shahibaug – Ahmedabad
Phone: +91-79-26401000
Email: info@aavawater.com

IT IS OBVIOUS FROM THE DISPATCH THAT AAVA ENTERED IN FILTERED WATER BUSINESS TRULY LATE, HOWEVER THE IDEA
OF NATURAL MINERAL WATER IS NEW ALONG THESE LINES AAVA HA PICKED IDEAL WAY FOR THEIR PROSPERITY, WHICH
IS AS OPPOSED TO GOING FOR PACKAGED DRINKING WATER, AAVA CHOSE TO GO FOR SOME NEW RECEPTION. SINCE
2005 EVEN AFTER LATE SECTION IN THE MARKET, AAVA BUILT UP ITSELF EXTREMELY WELL IN THE MARKET AND HAVE
GREAT BRAND PICTURE. ADDITIONALLY, INSIDE BRIEF TIME OF 4 YEARS AAVA ACCOMPLISHED HALF MARKET SHARE IN
AVIATION INDUSTRY.

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Market Segmentation:
Segmentation is the process of dividing the market into the groups of homogeneous
characteristics. However, Aava has not gone for any complex segmentation but they have
created two groups which are organizations and the public. The focus of Aava is to deal with
different organizations and cover B2B market. The other less known segments can be:
- Geographical (Ahmedabad and other regions)
- Educated and Health Conscious people
- Income Class

Target Market:
A target market is the market a company wants to sell its products and services to, and it
includes a targeted set of customers for whom it directs its marketing efforts. The B2B clients
were mostly targeted with the ‘‘superior quality at affordable prices’’ strategy. Top hotels,
restaurants and airlines companies in India are the target market for distribution. The B2C
clients were less targeted with innovative packaging and different pack sizes meant Aava had
something for every consumer.

Market Positioning:
In marketing and business strategy, market position refers to the consumer’s perception of a
brand or product in relation to competing brands or products. Market positioning refers to the
process of establishing the image or identity of a brand or product so that consumers perceive
it in a certain way. Aava created market positing by using the following ways:
- Superior Quality at Affordable Price;
- Unique Design of The Bottle;
- Charge premium price for different locations.

We wanted to position Aava as a premium brand. If we priced it at

US$0.33 in a place like Mumbai, we would be competing with numerous
similar priced brands, whereas at US$0.44, we would compete with only a
handful. - Shiroy

1.2. Defines the main problem or issues given in the case

Problem 01: Ignorance of consumers between packaged drinking water(pdw) & natural
mineral water(nmw)
It is mostly essential for company to showcase the unique & exclusive features of their product
to attain priority to consumers psychologically. nmw is far better than pdw in terms of health
issues, hygiene & purity which gives nmw competitive advantage. Here, main problem of aava
is they couldn’t make their market knowledgeable about their superiority to pdw thus losing

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out on market share. Market can’t even distinguish between pdw & nmw. They think it is the
same.
Problem 02: Lack of brand awareness
A consumer study suggested that Aava was not featuring in the top-of-the-mind recall for most
of the respondents. The brand awareness of Aava lacked way behind of Bisleri, Aquafina,
Kinley, pure life etc. In addition, communication campaigns of other competing brands to
educate the consumer about the essence of natural mineral failed to create the right knowledge
structure for the consumers and sales for the company. So, creating brand awareness is the
single most important endeavor behind product education of consumers.
Problem 03: Competing against different established brands & products
Along with Bisleri, many world renowned organized brands such as Coca-Cola, Pepsi, Nestle
started their operations in this segment with brands such as Kinley, Aquafina, Pure Life,
respectively. In 2002 Kinely had a market share of 35.1 percent and Bisleri had 34.4 percent.
It is almost insurmountable for a new brand like Aava to achieve foothold in a short period in
the market competing against such monstrous brands.
In addition to brands, alternative kinds of Drinks like Soft drinks, Juices all capture significant
portion of market which hinders gain of market share of all PDW & NMW companies.
Problem 04: Transition from b2b market to b2c market
Aava’s revenue was 90% from b2b operations in early 2012, whereas b2c part of revenue was
outright petty. It is very important to gain market share in b2c as it is indispensable for
prolonged growth & sustainability. Is it feasible to pursue that market with limited resources
comparing to other brands is still an enigma to resolve. So, how to garner foothold in b2c was
highest in magnitude in terms of problems to resolve for Aava.

1.3. Situation being faced by the decision-maker in the case

Situation 01: What is the correct strategy among three possible alternatives?
Aava had three possible alternatives to ponder upon & conduct their operations. The company
could very well move away from the B2C segment and remain in the B2B market only. Second,
the company could do nothing and continue its current strategy with a major focus on the B2B
and lesser emphasis on the B2C segment. Lastly, it could re-launch Aava in the B2C market
with a fresh marketing strategy. As the number of middle class income people was rising in
addition to number of health concerned people, high demand of natural mineral water was
looking imminent.

Situation 02: Decide about who actually is our target market

Different brands such as Bisleri, Aquafina, Kinley were already established in mass market of
packaged drinking water targeting all classes of consumers such as rich, middle class, lower

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class. In addition, ‘Evian’ targeted elite class of the society & offered high priced high quality-
oriented product. So, here it was crucial for Aava to decide precisely about their target market.
Will they target all classes of people or a limited number of people belonging from posh,
wealthy background who prioritize quality over cost?

Situation 03: What marketing strategy to apply to thrust into b2c market
Many companies previously attempted to raise people awareness about natural mineral water
but those endeavors subsided with very little impact. So it was quite ambiguous to understand
what strategies would be most appropriate to make inroads into b2c market. Whether mass
marketing strategy of using mass communication tools such as Television, newspaper,
billboards was effective or creating brand awareness by conducting promotional events in
universities, offices, important locations of big cities was effective was still up for
contemplation.

Situation 04: Consumer perception of Natural Mineral Water at present & future
It is very important to understand the psychology of consumers in order to take decisions about
present & future operations. Let’s assume all target market have realized how superior nmw is
to pdw. Will consumers now & in future give priority to health benefits, hygiene & purity of
nmw to pdw & value quality over cost to such extent that business remains profitable &
sustainable? Here, whether notion of people is increasingly routing behind quality over cost is
something which needs to be meticulously observed.

Section Two: Question Answer Part

2.1. Case Questions:
1. What marking procedures could be utilized from the brand system lattice to help Mehta
increment retail deals in the superior fragment? Concentrate both on the current B2B
section and the B2C raid of Aava.
2. What would be differences between its current B2B practices and its foray into the B2C
sector for Aava in terms of the 4Ps of marketing?
3. Based on the consumer survey findings, how should Aava proceed in the marketing
communication strategy? What should be the media choice?
4. Assume you are Varsha. Evaluate the three alternatives faced by Aava and select the
one you think best for Mehta. Justify your answer.

2.2. Answer of the questions stated in the case:

Question No-1: What marking procedures could be utilized from the brand system lattice to
help Mehta increment retail deals in the superior fragment? Concentrate both on the current
B2B section and the B2C raid of Aava.
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Answer to the Question: Branding strategies that could be used to help Mehta increase retail
sales in the premium segment are as follows:

• Persistence: each brand makes a promise. however, in a very marketplace within which
client confidence is low and monetary fund vigilance is high, it’s not simply creating a
promise that separates one brand from another however having a shaping purpose. So,
within the B2B section the aim is clearly outlined for Aava for providing Natural
Mineral water (NMW) however in B2C foray customers are less information or they'll
powerless to create a differentiation between the prepacked water and mineral water.

• Steadiness: The way to consistency is to abstain from discussing things that don't
identify with or improve of the brand. To give brand a stage to remain on, there is a
should make sure that most of the informing is firm. Eventually, consistency adds to
brand acknowledgment, which fills client devotion. As one of the achievement factor
of the brand is its tie ups with organization, for example, with inns and Airlines
Company. Along these lines, to keep up this achievement consistency is required.

• Feelings: People have an essential mental need to feel firmly associated with others,
and that minding, caring bonds from cozy connections are a noteworthy piece of human
conduct. Along these lines, there is having to create enthusiastic network towards the
brand for the purchasers. As, for Aava to venture into B2C advertise, the organization
must concentrate on getting bluntly connect with the clients by giving information
about the advantages of mineral water and the hindrances of the packaged water.

• Adaptability: The Company must stay adaptable to remain applicable, adaptability

empowers to make alterations that fabricate intrigue and recognize come closer from
that of the opposition. The organization must embrace the new strategies to support. It
isn't important that the old strategies will stay working later moreover. Along these
lines, every now and then there is a need of adaptability in the business.

• Aggressive Awareness: By accepting the opposition as a test to enhance your own

technique and make more prominent incentive in your general image helps in
accomplishing the destinations. Staying alert about the contender's technique will
likewise help in expanding retail deals in premium portion.

Question No-2: What would be differences between its current B2B practices and its foray
into the B2C sector for Aava in terms of the 4Ps of marketing?
Answer to the Question:

• Aava has various products for different buyers for example 20 litres bottle for business
buyers like institutions, household or offices, smaller pack sizes such as cup-cap bottle
1 and 1.5 litres for personal use, sports bottle 750 ml are designed with unique pull-
push cap for fitness-conscious individuals, personal 500 ml for hotels and restaurants

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 and Aava mini 300 ml/200 ml for the airplane. They have a high variety of bottles to
suit the need of each buyer.
• They offer a huge discount to their B2B customers and have tie up with various
institutions. But in case of B2C customers they want to target the upper section of the
society, so that they used premium pricing of US $.33 in Gujarat and Maharashtra and
US$0.44 in Mumbai. Because purchasing power of Mumbai customers are high. Price
of the bottled water are:
➢ Gold bottled water - Rs.20
➢ Cup-cap- Rs.15
➢ Sports- Rs.15
➢ Mini bottled water - Rs.10
➢ Family pack - 20 liter- Rs.60, 10 liter & - Rs.40, 5-liter Jars - Rs.25
• For promotion to B2B audience, they developed different prospects, one of which was
an animated educational video for its clients which is discussing about the product
source and the rigorous packaging process through which the Aava water went through
before delivering to customers. For B2C customers they developed a campaign which
is mainly targeting premium customer and want to develop an image of a company
which provides a quality and healthy water. The company designed the bottle in a way
that bottle itself communicate to customers. The company adopted a two-tier strategy
for positioning its product. The B2B clients were mostly targeted with the ‘‘superior
quality at affordable prices’’ strategy. In case of B2C, they were using packaging as the
most important factor of positioning. The innovative packaging and different pack sizes
meant Aava had something for every consumer. Their present tag line is “true to you
true to nature.”

Aava has an institutional tie-up with key hotels, restaurants and airlines companies for
distribution. These different institutional tie-ups helped Aava in building a brand name for itself
and the premium pricing strategy. In case of B2B no reseller is required, due to which
communication was more direct.

Question No-3: Based on the consumer survey findings, how should Aava proceed in the
marketing communication strategy? What should be the media choice?
Answer to the Question:
Based on the findings following should be the plan for marketing Aava’s communication
strategy:

• Aava requires a strong and well-planned brand communication strategy to educate

people about the differences between PDW and NMW. This could create the right
positioning for Aava and increase its retail sales.
• This could be followed by informative advertising to create awareness and improve the
brand’s visibility and perception at premium locations.

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 • Instead of following traditional methods of mass advertising via television, radio and
newspapers, Aava should focus on group advertising at premium locations like colleges
and areas which are known to be office hubs like in NCR in Gurgaon. This would cost
less than the traditional methods.
• Also, Aava can create awareness about its product and brand using social media
advertising via various platforms like Facebook, Twitter, Pinterest. It could make social
groups and pages regarding the benefits of NMW. This media of advertising is cost
effective and will also help to reach the target masses.
• Both location based advertising and social media advertising should be done
simultaneously to make a place in the top of mind of the customers.

Question No-4: Assume you are Varsha. Evaluate the three alternatives faced by Aava
and select the one you think best for Mehta. Justify your answer.
Answer to the Question:
Three alternatives faced by Aava are:

• The company would only concentrate on B2B market. In this alternative, they already
have a brand image as “superior quality at affordable price” and enjoy goodwill. As
only 10% profit comes from the B2C market, they could think to stop targeting the B2C
market because in B2C market they have a huge competition and very low percentage
of the population is aware about the Aava as a natural mineral water.
• The company could continue with its current strategy with a major focus on the B2B
and lesser emphasis on the B2C segment. As B2B market is limited and in case of B2B
buyers have bargaining power which leads to lesser profit. But in B2B customers are
fixed and there is limited expenditure in advertising and promotion. So, continue with
present strategy would help Aava in expanding in various parts of country but with
limited expenditure in campaign.
• It could relaunch Aava in the B2C market with a fresh marketing strategy. To relaunch
Aava, the company has to make a proper plan for communicating the brand to its B2C
customers. They have to create a right positioning strategy and educated consumers
about Aava and benefits of drinking mineral water over bottled water.
As demand for mineral water is increasing in Indian market and there is growth in demand for
bottled water in India. As Varsha, I would suggest that relaunching Aava in B2C market is a
better strategy.

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Section Three: Summary
3.1. Summary
The case explores at the various marketing strategies adopted by Aava in India. The case traces
the brand's foray into the Indian bottled water market as a regional player and its growth as a
pan Indian brand. However, in early 2012, the majority of Aava's sales were coming through
institutional sales. The brand was facing a challenge of trying to find a foothold in the retail
market. The balance between becoming a mass and a premium brand was also looming large.
The major question that Aava needed to answer is whether it should restrict itself to the B2B
market or whether it should try to penetrate the retail market. Given the latter is more beneficial
for the company, the issues of product, pricing and brand communication needed to be revisited
since these are not similar for B2B and B2C brands. As interest for mineral water is expanding
in Indian market and there is development sought after for filtered water in India. Aava would
propose that relaunching Aava in B2C advertise is a superior technique. Expected learning
outcomes – The various learning outcomes of the case include: understanding the differences
between B2B and B2C marketing and the need for different strategies for both, apply marketing
research findings to introduce a product in a market, evaluate and execute marketing
communication strategies based on human behavior for more effectiveness, evaluate
alternatives leading to the right choice of branding/marketing strategy, understand the role of
4Ps of marketing for successful business and industry analysis. Aava requires a solid and all
around arranged brand correspondence technique to instruct individuals about the contrasts
among PDW and NMW. This could make the correct situating for Aava and increment its retail
deals.
With an annual growth rate of 400%, Aava is looking to expand its reach to all corners of the
country in the coming years. The company aims to grow in other beverage categories apart
from just Natural Mineral Water and has a target and a growth map to cross 50 Crore INR in
revenues by FY 17-18 and at the same time diversifying into other products like Tonic Water,
Sparkling Water, Flavored Water, Juices etc. and other products which can be pushed via its
current distribution network. Also, in 2009 Aava was valued at 120 crore INR and has also got
foreign investment. The company aims to gather a 5x multiple to its previous valuation and
believes that the above growth map will help in achieving the target and help in the funding
scheduled for FY 17-18.

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