CASE STUDY: PERRIER GREAT WATERS OF FRANCE, INC: PERRIER Segmentation, positioning, new product launch In less than 2 years in the U.S. sales of Perrier sparkling mineral water, originally productfrom France skyrocketed from one to 30 million dollars. As feared, this tremendous success in creating a segment in the soft drinks market attracted numerous American competitors, both large and small.The main issue is now facing PERRIER is the problem of how to continue its meteoric growth that surprised everyone, including their own senior managers. The sales success of Perrier is based on acarefully planned and executed strategy, based on selling the product at high prices with a strong promotional support. PERRIER is positioned as a healthy alternative to soft drinks and alcoholicbeverages and as a product purchased by "wealthy" adults and all those they would like to be so. A bottle of 25 cl now sells between 69 and 79 cents approximately 50% above the average price of soft drinks.Before its massive sales, it was sold almost at $1 per unit in specialty stores for "gourmets". PERRIER is a spring water, carbonated, natural, with small bubbles and aroma especially compared withcompeting products made of gas-charged machine. Its balanced green bottle, a distinguished label, a "premium" price, selective targeted advertising, all combine to build an image and attract elitist“snob” consumers.
The new advertising campaign includes ads in high fashion magazines and TV spots. The campaign went first to the 26th largest U.S. metropolitan markets and then another 25thadditional metropolitan markets. An essential part of PERRIER plan is to use a variety of channels distribution ranging from the selected "gourmet" shops to refresh beverages sections at grocery stores.Ironically, in the past, soft drinks maintained a declared war of prices, slapping and scratching each other in order to win a place at linear display. Promotions are usually expensive and discounts are...
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