Questions to be answered:

List of case analysis questions provided below. Will configure the LMS shortly.

1. Explain Aava’s revenue model 

Aava's Revenue Model:

Aava's revenue model is based on the sale of its natural mineral water products. The company
generates revenue by selling bottled water to consumers through various distribution channels, such
as retail stores, supermarkets, online platforms, and partnerships with sporting institutions and
events. Customers pay a price per unit (bottle) of Aava water, which includes the cost of production,
distribution, marketing, and profit margin for the company.

Additionally, Aava may engage in promotional activities and brand partnerships to enhance its
revenue streams. Tie-ups with elite sporting institutions and participation in cricketing tournaments,
as mentioned in the case study, are examples of such initiatives. These partnerships may involve
sponsorship deals or promotional campaigns that contribute to Aava's brand visibility and potentially
lead to increased sales.

2. Complete competition analysis and evaluate Aava’s relative performance

The relative performance of Aava Natural Mineral Water can be analysed as follows:

1. Relative Performance:

Market Share: Aava is one of the privileged 12 players in the country with a license to produce
natural mineral water. It holds a significant market share compared to other players in the natural
mineral water segment in India.

Volume Sales: Aava sells more bottles compared to Himalayan and Qua, indicating healthy demand
for its product in the market.

2. Challenges Faced by Aava:

Brand Image and Positioning: Despite being one of the top players in the natural mineral water
market, Aava faced challenges in creating a premium brand image and positioning.

Retail Presence: Aava faced difficulties in securing adequate retail visibility. The brand was scarcely
available on retail shelves and premium outlets, which hindered its accessibility to consumers.

Perceived Premium Perception: Aava's brand image was perceived as moderate in terms of
premium perception compared to its competitors, Himalayan and Qua.

Market Perception: Aava performed poorly in terms of brand awareness and recall compared to its
competitors. Competitors sourced water from Himalayan ranges which was greatly admired over
Aava’s source from Aravalli which was lesser known to common consumers

Positioning Strategy: Management faced the challenge of determining the correct positioning
strategy to create a strong and distinctive brand identity.
 Attribute Aava Himalayan
Source of Water Aravalli mountain range Himalayan mountain range
Packaging Design Cup-cap bottle design Vibrant pink packaging
Taste Sweet taste Not specified
Perceived Premium Perception Moderate High
Brand Image Lags behind competitors Strong and aspirational
Tie-ups and Associations Elite sporting institutions Not specified
Retail Presence Struggling with visibility High presence

The value proposition of Aava Natural Mineral Water can be summarized as follows:

1. Unique Source of Purity: Aava stands out with its unique source of water from the Aravali
Mountain range.

2. Premium Taste and Quality: Aava's water is known for its sweet taste, providing consumers with a
refreshing and enjoyable drinking experience.

3. Distinctive Cup-Cap Bottle: Aava's signature cup-cap bottle design is eye-catching and easily
recognizable.

4. Health and Wellness Focus: Aava caters to health-conscious consumers who prioritize wellness
and seek products that contribute positively to their well-being.

5. Elite Sporting Associations: Aava's tie-ups and associations with elite sporting institutions, such as
the Cricket Club of India (CCI), this association appeals to consumers seeking products endorsed by
reputable and prestigious organizations.
Q3. What are the segments that Aava could target? Complete segmentation criteria for  each
segment that Aava can target.

Analyzing according to the User and Usage framework:

1. User Segmentation:

a. Health-Conscious Consumers: This segment comprises individuals who prioritize health and
wellness. They are concerned about the quality of the products they consume and are willing to pay
a premium for natural and pure mineral water.

b. Urban Millennials: Young urban consumers are a relevant segment for Aava, especially those
seeking trendy and aspirational products.

c. Luxury and Hospitality Industry: Aava can target the luxury and hospitality sectors, such as high-
end hotels, upscale restaurants, and luxury resorts. It will help in connecting with premium
customers on a large scale.

2. Usage Segmentation:

a. Regular Bottled Water Consumers: This segment includes individuals who frequently consume
bottled water as part of their daily hydration needs. Aava can position itself as a healthier and more
premium option for this segment, emphasizing natural mineral content.

b. Event and Occasion Users: Aava can target consumers who purchase bottled water for specific
events, occasions, or social gatherings. This usage occasion may require a premium and visually
appealing water brand, making Aava an attractive choice.

c. On-the-Go Consumers: Targeting busy and on-the-go consumers, Aava can promote its portable
and easy-to-carry cup-cap bottle design for this segment.

Target Segments and Segmentation Criteria:

Aava could target the following segments:

a. Health-Conscious Consumers: This segment comprises individuals who prioritize health and
wellness and are willing to pay a premium for high-quality, natural mineral water. Segmentation
criteria could include
a. Demographics (Age group, Income level)
b. Lifestyle choices (Fitness enthusiasts, Wellness-conscious individuals)
c. Location (Urban areas with health-conscious populations)
b. Urban Millennials: Young urban consumers who seek trendy and aspirational products might be
a suitable segment for Aava. Segmentation criteria could include
a. Age (millennials and Gen Z)
b. Lifestyle (Urban dwellers, social media enthusiasts)
c. Interests (Sustainability, Premium experiences).
c. Hospitality and Luxury Establishments: Aava can target high-end hotels and luxury
establishments where customers expect premium experiences and products. Segmentation
criteria may include
a. Type of establishment (Luxury hotels, fine-dining restaurants)
b. Location (Upscale neighborhoods, Tourist destinations)
c. Willingness to pay a premium for a premium water brand.
4. What should be Aava’s positioning? Please compare Aava with other players on different
parameters. What should Aava focus on to create a distinctive positioning for itself?

Aava's positioning should aim to establish itself as a premium and distinctive natural mineral water
brand in the market. To achieve this, Aava needs to compare itself with other players in the industry
and focus on key parameters to create a unique and compelling positioning.

Some of the key parameters are:

1.Unique Source and Purity:

Aava: Differentiates itself with its unique source of water from the Aravalli Mountain range,
promoting natural purity and distinct taste.
Himalayan: Emphasizes its association with the revered Himalayan Mountain range, known for its
purity and spiritual significance.

Focus for Aava: Highlight and communicate the unique source of water from the Aravali Mountain
range, showcasing its natural purity and distinct taste, setting it apart from competitors.

2. Packaging and Brand Image:

Aava: Features an innovative and recognizable cup-cap bottle design.
Himalayan: Known for its vibrant pink packaging and premium branding, creating a strong
aspirational brand image.

Focus for Aava: Capitalize on the distinctive cup-cap bottle design and enhance overall brand image
to create a premium and aspirational perception in consumers' minds.

3. Premium Perception:
Aava: Perceived as moderate in terms of premium perception compared to Himalayan and Qua.
Himalayan: Strongly associated with a premium and aspirational positioning.
Qua: Also positioned itself as a premium natural mineral water brand.

Focus for Aava: To elevate its premium perception, Aava needs to strengthen its brand image,
positioning, and communication to be perceived as a high-quality, premium natural mineral water
brand comparable to Himalayan and Qua.

4. Retail Presence:
Aava: Faces challenges with retail visibility, affecting consumer accessibility and brand recall.
Himalayan: Enjoys high retail presence, contributing to strong brand visibility.

Focus for Aava: Improve its retail distribution and shelf presence to make Aava easily available to
consumers in premium outlets and retail stores, enhancing its reach and accessibility.

To identify Points of difference from competitors or peers, Aava must focus on unique attributes or
characteristics that set it apart and provide a competitive advantage in the market.

1. Unique Source of Water

2. Packaging Design
3. Sweet Taste
4. Elite Sporting Associations
5. Collaborations with High-Profile Events