DON HONORIO VENTURA TECHNOLOGICAL STATE UNIVERSITY

COLLEGE OF BUSINESS STUDIES-2ND SEMESTER, SY 2021

FINALTERM EXAMINATION
CBME 21- STRATEGIC MANAGEMENT
Marketing 3B

Part I

Instructions:

Ask questions if anything is unclear. If you do not understand what the question is asking
or if you are unsure about the meaning of the key word, you may ask me. Do not attempt to
answer the question until you fully understand what you are supposed to do. Otherwise, you may
end up providing an incorrect answer.

Questions:

1. Suppose your company has just acquired a firm that produces battery-operated lawn

mowers, and strategists want to implement a market-penetration strategy. How would

you segment the market for this product? Justify your answer.

2. Why Strategy Evaluation is More Difficult Today?

3. Discuss the three basic activities of Strategy Evaluation?

Part II

Instructions:

Read case facts & analyze critically. Answer the questions found at the end of each case.

Evian
Evian is one of the most famous mineral water brands owned by the French food-
products group Danone. Each year, approximately 1.5 billion bottles are sold in more than 140
countries across the world. According to the market research company Millward Brown, the
Evian brand can be valued at $1,027 million. The success of the brand is a result of continuous
innovation and powerful and original communication.

At the end of the 19th century, Evian water, which was sourced from a natural spring,
became known for its “miraculous” healing properties and was being sold in pharmacies. By
mid-1930s, Evian was recommended as the perfect water for babies. Campaigns designed to
target mothers, midwives, and doctors were developed consequently. In the 1950s, Evian was
still catering to this segment, but its communication added a new reference to health, and the
theme of the Alps was introduced.

In the 1980s, the brand decided to go in a different direction and the concept of
equilibrium (“the force of balance”) was dropped. The theme of purity was chosen to
differentiate the brand from competitors and enable high end positioning of the product. The
company adopted a new slogan to reflect this change—“the water you drink is as important as
the air you breathe.”

In 1998, Evian in association with its advertiser BETC Paris launched the hugely
successful ad campaign “Water Babies” that had babies swimming in synchronicity, a metaphor
through which the brand evoked youth. In France, the approval rating for this ad was 94 percent
and the recognition score was 91 percent. This television commercial had a very strong impact
on the collective conscious of people.

Globally, the brand focused on purity and used the slogan, “the Original.” Press
advertisements portrayed, for example, a beautiful black angel lying on a white cloud who
brought down rain with a bottle of Evian, or a mermaid quenching her thirst with Evian water.
Despite the differences in product-positioning based on markets, the brand has always been
conscious of its upscale image.

The economic crisis of 2007−2009 had a negative effect on the market for mineral water.
Sales dropped as more and more consumers turned to less expensive water. During this time, the
brand went through a restructure to keep from losing its market share. As a result, Evian has a
premium and popular positioning in France, Switzerland, the UK, and Belgium, while it is a
luxury brand in almost all the other countries. This is because in Europe, the brand is sold in
every supermarket, whereas in many other countries across the world, the brand is sold only in
urban centers. Evian generates 50 percent of its sales outside of France.

A bottle of Evian can reach three times the price of a regular soft drink. The brand caters
to a very narrow urban market, and it therefore felt the need to unify its brand communication in
favor of something more global. It is in this regard that Evian and BETC decided to pick up from
where the water babies left off and launched the “Roller Babies” campaign. Health and purity of
the Alps were abandoned in favor of a single message, “Live young.” This advertisement was
broadcast around the world and went on to become one of the most-watched ads ever on
YouTube with 254 million views and held the Guinness world record in this category at one
point. It was the advert of the year for Time Magazine, Wall Street Journal, and The Guardian. It
was also the 20 percent most effective ad ever (source: GfK France, Belgium, and Germany).

In Asia, however, consumers did not understand quite well the relationship between
Evian, seen as the pinnacle of luxury, and babies on rollers dancing to hip-hop music. BETC,
then, had the idea of creating T-shirts with images of baby bodies and launched a campaign
showing people of all ages dressed in these tees. With this, the advertisers wanted to represent
their brand as one that keeps adults young at heart. The T-shirts were a huge success globally and
created the desired brand awareness.

In 2013, Evian launched “Baby & Me,” its third major campaign with BETC since 1998.
This commercial used a baby-and-adult mirrored-dancing concept to highlight their “Live
Young” slogan. The idea behind this video was to allow consumers to reconnect with their inner
child, in line with the brand promise.

Since 2009, Evian’s global brand communication strategy has been focused on both
digital and traditional media. With the Web, Evian can target precisely and reach masses easily,
and is one of the top brands viewed online. The brand has also always cultivated a strong
presence outside the Internet. Since 2007, it has carried out several promotional operations with
limited edition glass bottles signed by major designers, such as Paul Smith in 2009, Issey Miyake
in 2010, and Kenzo in 2014. Evian has also been credited with creating the first Women’s Golf
Open Championship. Today, it is considered to be one of the major tournaments in Europe and is
broadcast live on television in 167 countries. Evian is the official water brand for the Wimbledon
tennis tournament. The brand is also a sponsor for the Paris fashion shows. In addition to this,
Evian supports a variety of causes linked to its brand territory. It is committed to the protection
of the environment through creation of schools of water to help populations manage their water
resources in an autonomous and sustainable way. It has developed partnerships with the Red
Cross, and offers fellowships in pediatrics, thereby affirming its positioning on health and
children.
 Questions

1. Evian is a global mineral water brand that is sold to millions of people across the
world. Analyze the reasons for its success.
2. What will be the strategic evolution of the brand’s communication?
3. Can any other mineral water brand ever take over Evian’s market share?

Sources: Natalie Zmuda, “Evian Seeking Return to Relevance, New Head Marketer,” Advertising Age, August 7, 2013; “Saga
Evian,” Prodimarques, January, 2002; “Evian: le marketing comme élixir de jeunesse,” Dynamique-Mag, October 19, 2012;
Alexandre Debouté, “Les bébés d’Évian font un carton sur Internet,” Le Figaro, September 5, 2013; Lauren Johnson, “Evian’s
Real-Time Marketing Reaps Big Social Stats: Targets New Yorkers with Twitter-enabled service,” Adweek, September 5, 2014;
Effie France, www.effie.fr.
 RUBRIC FOR CASE ANALYSIS
Approaching Standard At Standard Exceeds Standard
Criteria 85-87 88 - 93 94 - 100
Clear explanation of key strategic Shows some Shows adequate Shows superior knowledge
issues: The problems, scope, and understanding of the knowledge of the issues, of the issues, key
seriousness were clearly identified in issues, key problems, and key problems, and the problems, and the
the discussions. There was a well- the company’s present company’s present company’s present
focused diagnosis of strategic issues situation and strategic situation and strategic situation and strategic
and key problems that demonstrated a issues. issues. issues.
good grasp of the company’s present
situation and strategic issues.
Appropriate analysis and evaluation: Analysis of key change Analysis of key change Analysis of key change
There were complete data on which to drivers and the drivers and the drivers and the underlying
base a thorough analysis. Key change underlying the issues underlying the issues the issues were clearly
drivers underlying the issues were were not identified. were partially identified identified
identified. Synthesis, analysis, and
evaluations were clearly presented and
supported in a literate and effective
manner.
Conclusions and recommendations are Effective Effective Effective
congruent with strategic analysis: recommendations and/or recommendations and/or recommendations,
Specific recommendations and/or plans plans of action plans of action were solutions, and/or plans of
of action provided. Specific data or facts inadequate. Specific partially provided. action were provided.
were referred to, when necessary, to theories and facts were Specific theories and Specific theories and facts
support the analysis and conclusions. not referred, when facts were occasionally were referred, when
Recommendations and conclusions necessary, to support the referred, when necessary, to support the
were presented and supported in a analysis and conclusions. necessary, to support the analysis and conclusions.
literate and effective manner analysis and conclusions.

Instructions:

 Please submit your answers today (July 28, 2021)-

vitugchristianjay@gmail.com ,not later than 08:00pm

 When submitting your outputs on my email please, do not forget to include

the subject: 3B FINAL EXAM

 if you have any further questions, please do not hesitate to let me know.