Sales Promotion Plan for Chaudfontaine Water


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Sales Promotion Plan for Chaudfontaine Water

Prepared By:
Tomer Melman
Christina Papale
Edgina Desormeau
Derek Medwed

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Sales Promotion Plan for Chaudfontaine Water

  1. 1. Sales Promotion Plan for Chaudfontaine WaterPrepared By:Tomer Melman • Christina Papale • Edgina Desormeau • Derek Medwed
  2. 2. Table of ContentsSituation 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 Page 2Prepared By:Tomer Melman • Christina Papale • Edgina Desormeau • Derek Medwed
  3. 3. History Chaudfontaine is a Walloon municipality located in the Belgianprovince of Liège. As of January 1st, 2006 Chaudfontaine’s population was21,012. Chaudfontaine’s drinking water is one of Belgium’s most wellknown enterprises, and the growing lead of its category since 2004. Statistics obtained from Coca-Cola provide evidence to supportsuch a view. While the total bottled water market grew 2.8% in Belgiumbetween 2001 to 2003, the Chaudfontaine brand registered 3.4% growthin the same period. Category growth in Belgium between 2004 and 2006was 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 mineralwater.” It has been discovered that Chaudfontaine water travels throughrock layers at 1,600 meters for about 60 years before reaching the surface. Since it was discovered in 1240, Chaudfontaine drinking water hasbeen sold and traded under many different names. It began withThermale Chaudfontaine in 1924; then Cristal Chaudfontaine in 1926; andMonopole Chaudfontaine in 1938. In 1961, it was acquired by Piedboeufbrewery. In 1988, the Piedboeuf brewery integrated with Interbrew group;all the while keeping the name Monopole. In 1997 Chaudfontaine drinkingSales Promotion Plan for Chaudfontaine Water Page 3Prepared By:Tomer Melman • Christina Papale • Edgina Desormeau • Derek Medwed
  4. 4. water was repurchased by businessman Abbas Bayat, and namedChaudfontaine. Bayat sold the brand to Coca Cola in 2003.Design According to, Chaudfontaine became a pioneer inthe Coke network in 2006 by offering a newly designed glass bottle rangein 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 thisuniqueness. This has been achieved by stressing the core values of thebrand more, using the dove in the logo as a symbol for purity, bylaunching a new bottle with a design that reflects the purity andtransparency of the water and by focusing our communication platformtowards consumers making use of the ‘connoisseurs preferChaudfontaine’ tagline.”Sales Promotion Plan for Chaudfontaine Water Page 4Prepared By:Tomer Melman • Christina Papale • Edgina Desormeau • Derek Medwed
  5. 5. SWOT AnalysisStrengths: Weaknesses: A bottle made of glass is more  Economics Crises in the U.S: People will environmentally friendly than the be less likely to spend a lot of water. plastic competitors.  Brand name is difficult to pronounce The bottle’s design has an exclusive which may effect liking of the product. look setting it apart from the rest of  The glass bottle is heavier than the the market. competition and not easy to carry. The water source and taste are of  The product is imported to the U.S which higher quality. will increase the retail price. 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.Opportunities Threats A European product can be easily  The consumer can drink water without promoted as a luxury fashionable paying for it. product in the US.  The bottled water industry is The three versions still, lightly distilled, experiencing a decrease in sales and distilled offer variety to the volume. consumer.  Consumers may associate the product The premium water category does with Coca Cola which can take off the not have a clear leader. This is a big luxury appeal of the brand. opportunity for significant market  The demand for a premium water share. product is not clear. Sales Promotion Plan for Chaudfontaine Water Page 5 Prepared By: Tomer Melman • Christina Papale • Edgina Desormeau • Derek Medwed
  6. 6. Target MarketConsumer Target Markets#1: New RichDemographics: Wealthy males and females 21-35 who are successful inthe industries they work in and has a new found wealth. Lives in anupscale neighborhood within a major metropolitan area. Collegegraduates with a Bachelors degree at the minimum.Psychographics: A trendy and fashion-forward individual whom has anabundance of disposable income. This person spends money frivolouslyon «it» items and luxury entertainment, such as high-end getaways,upscale restaurants and nightclubs. They are health consciuons. Thisindividual has a personal trainer and a nutritionist.#2: Old RichDemographics: Males and females 50-70, who have worked hard over theyears 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 theyare not yet retired, in which case they have millions in savings.Sales Promotion Plan for Chaudfontaine Water Page 6Prepared By:Tomer Melman • Christina Papale • Edgina Desormeau • Derek Medwed
  7. 7. Psychographics: As a retired person, enjoys the finer things in life such astraveling privatley. Traditionally enjoys expensive restaurants and wearsluxurious clothing.Target Market #3: TravelersDemographics: Males and females between the ages of 25 and 55. Hasmultiple residences is in affluent neighborhoods, and spends much of theirtime 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 toplevel positions at the companies they work for. They have many friends allaround the globe and communicate mainly through their Blackberry oriPhones. Always updated with the newest gadgets, social networks andsocial media tools.Sales Promotion Plan for Chaudfontaine Water Page 7Prepared By:Tomer Melman • Christina Papale • Edgina Desormeau • Derek Medwed
  8. 8. Target MarketDistribution Channels:Target Distributor #1: Marquis Jets/NetjetsManages and operates the world’s largest and most reliable private jetfleet with the highest standards of safety, security and service. As anowner of a Marquis Jet Card one is provided with guaranteed aircraftavailability, a team dedicated to one’s needs 24/7, access to thousandsof airports around the world, and now Chaudfontaine water.Target Distributor #2: Crystal CruisesA 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 GroupA high-end hospitality company that develops, manages and operates aplethora of luxury restaurants, lounges, bars and hotels. In addition to thewell-known Gansevoort Hotel New York, The One Group owns andoperates the Gansevoort South Beach, Miami and Turks and Caicos. Inaddition to the three hotels, The One Group provides completeSales Promotion Plan for Chaudfontaine Water Page 8Prepared By:Tomer Melman • Christina Papale • Edgina Desormeau • Derek Medwed
  9. 9. management and operation of all food and beverage outlets with its 18fashionable and dynamic restaurants, lounges and bars that spread fromNew York, to Miami, Los Angeles, Turks and Caicos and Las Vegas.Target Distributor #4: Thompson HotelsAssociated with a wealthier individual due to its sophisticated andclassically cool style that is contemporary and elegant with an element ofedge 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 CiterellaGourmet Garage, Epicure in Miami, Las Vegas Gourmet in Las Vegas,Bristol Farms in Los Angeles, Fox & Obel in Chicago, Vals Gourmet inAspen, Dean & Deluca Nation wide.Target Distributor #6: Soho House is a private members club and hotellocated 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,Sales Promotion Plan for Chaudfontaine Water Page 9Prepared By:Tomer Melman • Christina Papale • Edgina Desormeau • Derek Medwed
  10. 10. Perrier, San Pellegrino. Penetrating this market would be fairly easy being thatChaudfontaine is a Coca-cola product. Coca-Cola has strong,established distribution channels, not to mention a positive (trade) brandimage in the US. Being a Coca-cola product Chaudfontaine has a leg-upin the US market. However this does not mean Chaudfontaine will be soldonly where Coke and other CocaCola products are sold.Sales Promotion Plan for Chaudfontaine Water Page 10Prepared By:Tomer Melman • Christina Papale • Edgina Desormeau • Derek Medwed
  11. 11. OBJECTIVES & STRATEGIESTrade Objectives:1. To successfully introduce Chaudfontaine to the U.S. market durring theSummer of 2011 through the following: Marquis Jets/ Netjets Crystal Cruises The One Group Thompson Hotels Soho House Gourmet Groceries2. Present it as a luxury brand of premium water, without directly saying sothrough the brand image of the distribution channels. In the Major U.S.cities where the businesses provide service: New York Chicago Los Angeles Aspen Miami West Palm Beach Las Vegas Tampa Washington D.C.3. To give the chosen distributors a sense of pride in carryingSales Promotion Plan for Chaudfontaine Water Page 11Prepared By:Tomer Melman • Christina Papale • Edgina Desormeau • Derek Medwed
  12. 12. Chaudfontaine through a promotional brunch.4. To gain 2.5% market share within a year by offering trade discounts andpromotional offers.5. To create top of mind awareness by offering a trip to Chaudfontaine,Belgium.Consumer Objectives:1. Acquire favorable image amongst target groups by creating acorporate social responsibility program and sampling.2. Get those in the New Rich and Traveler target group to becomefamiliar with the brand by celebrity product placement and eventsponsorships.3. Get those in target markets to request Chaudfontaine water at theirchosen Hotels and Restaurants due to its great taste and celebrityappeal.4. Get those in the target markets to purchase Chaudfontaine water fortheir homes with our price discount offers, and sampling.5. Entice the New Rich and Traveler target markets to share the productthrough their eyes by creating a sweepstakes, Photo-Chaudfontaine.Sales Promotion Plan for Chaudfontaine Water Page 12Prepared By:Tomer Melman • Christina Papale • Edgina Desormeau • Derek Medwed
  13. 13. STRATEGIESTrade Strategies:1. Free Case offerDo cold calls to set up meetings with a Chaudfontaine representatives.Offer them a special edition variety case of Chaufontaine. This varietypack is a free case and it would include the three options water options -still, lightly distilled, and distilled.2. Promotional Event: Brunch with Chaudfontaine.After initial introduction is made and we’ve a gathered a solidprospective clientele list, we invite them to brunch hosted byChaudfontaine. We would put on a presentation and have order formsready at the event. We will host a brunch in every city where we have alarge number of clients, up to five events. They will leave with businesscard waterbottles.3. Trip to Chaudfontaine, Belgium (Sweepstakes)To get the trade motivated, we will give away an all inclusive trip toChaudfontaine, Belgium. The winners get a tour of the Chaudfontaineplant and/or headquarters, the town, and spa services.4. Trade DiscountsBuying Allowance. Every ten cases of Chaudfontaine ordered, the nextten 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 periodSales Promotion Plan for Chaudfontaine Water Page 13Prepared By:Tomer Melman • Christina Papale • Edgina Desormeau • Derek Medwed
  14. 14. 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 PlacementReach out to firms who specialize in product placement, or the Coca-Cola PR department to get Chaudfontaine distributed in celebrity giftingsuites and at exclusive events. For example Hollywood movie premieres,award shows and New York, Los Angeles and Miami Fashion Week. As aresult celebs get photographed with the product. The image or footagegets published in major print publications and broadcasts. Resulting infavorable image and lasting residual value with our target groups.2. Be photographed with ChaudfontianeOur corporate social responsibility program, for every picture uploadedby a consumer $1 is donated to «The Haiti Water Project» aims to provideclean, safe water for communities in Haiti. Haiti is one of the most water-impoverished countries in the world and after the earthquake, there areeven more challenges.Consumers take a picture of themselves and upload it to theChaudfontaine Facebook page. They can share this picture on theirprofile; further promoting the brand.3. ContestFacebook couples/fans are invited to spend a day in the park, or on theSales Promotion Plan for Chaudfontaine Water Page 14Prepared By:Tomer Melman • Christina Papale • Edgina Desormeau • Derek Medwed
  15. 15. beach creating sculptures. Doves or any of the Chaudfontaine bottles forexample, the winning sculpture wins the following -A three-night four day trip to the city of your dreams, hotel and airfareand $500 in cash.4. US OpenSponsor the U.S Open and create a stand with a “green screen.” Thegreen screen will have different backgrounds of the tennis players withChaudfontaine. Have attendees take their picture with the green screenand in order to view the picture, they will have to go to the website andtype the number that they will receive after they take their picture.5. SamplingHigh-end Gourmet local Food Store; Citerella and Gourmet Garage inNew York, Epicure in Miami, Bristol Farms in Los Angeles, Las VegasGourmet 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 Week6. Price Discount -Offer discounted prices to people using the facilities that provide theSales Promotion Plan for Chaudfontaine Water Page 15Prepared By:Tomer Melman • Christina Papale • Edgina Desormeau • Derek Medwed
  16. 16. water. -Example: Consumers flying on Marquis Jet who like the water you aregiven a coupon offering a discounted rate if they decide to purchase alarge amount of the water and have it shipped to one of your homes.Participating Hotel guests will be made the same offer.Sales Force Objectives1. To sell a maximum number of cases of water in the first quarter. Atleasta hundred cases per sales rep.2. Throughout the year, we urge our sales force to find new high enddistributors and sell to them.3. Reach a maximum number for annual salesSales Force StrategiesTo incentivizes our sells force to reach our objectives we will award themthe following1. The first sales rep to sell 100 cases in the first quarter wins A trip for twoto Chaudfontaine, Belgium.2. The first sales rep to sign on two new distributors within the first year winsa weekend getaway to partnering hotel.3. At the end of the year the one sales associate who generates the mostsales earns a bonus equaling 10% of their annual salary.Sales Promotion Plan for Chaudfontaine Water Page 16Prepared By:Tomer Melman • Christina Papale • Edgina Desormeau • Derek Medwed
  17. 17. Sources Promotion Plan for Chaudfontaine Water Page 17Prepared By:Tomer Melman • Christina Papale • Edgina Desormeau • Derek Medwed
  18. 18. Promotion Plan for Chaudfontaine Water Page 18Prepared By:Tomer Melman • Christina Papale • Edgina Desormeau • Derek Medwed