PERRIER and BADOIT Brand Mantras

The Abell Tryptic : BADOIT

The Abell Tryptic : PERRIER

Competition

The market of soft drinks is very competitive where sparkling water has a great potential of development since consumers are more and more attracted. This market is very concentrated with "a production of 90% in France" by the groups Danone (Badoit, Salvetat), Nestlé Waters (Perrier, Quezac, and San Pelligrino), and Alma (Saint-Yorre, Rozana, and Vichy Celestin). 

There are, however, four major national brands that have an oligopoly within restaurant, cafés and hotels, that are: Badoit, Saint-Yorre, Perrier, and San Pellegrino. In addition, there is a new entrant called St-Amand who has lot of difficulties since it lacks of innovation. So, we can see that competition is very rude and that those brands have to constantly innovate in order to differentiate themselves from each other and to gain more market share.

 

Strategies of the key competitors in the market

In this part, we will see the strategies of the four brands that have an oligopoly in the French market.
San Pellegrino is a challenger and have gleaned market share of the Giant of sparkling waters Badoit. The brand focuses on too strategies that are: acquisition strategy (presence all over the world), and alliance and cooperation strategy as for example its partnership with the jeweler Bulgari that both jointly launched a limited edition bottle, which gives a new visual identity. Additionally, the brand took on a new challenge of modernizing the packaging that is more impacting and is following a policy of communication and transparency. Besides, the brand concentrates more in the R&D and technology in order to satisfy the customers' demand.

Badoit:

Badoit is the market leader and is well positioned in terms of distribution and marketing in France with a market share of 32.5% in 2011. Badoit tends to accentuate the perception of sparkling water especially the red Badoit and this by focusing on its authentic identity. Moreover, Badoit establishes an aggressive policy to conquest restaurants by strengthening the sparkling water side. As well, Badoit tries to innovate and recently launched a range of flavored water without sugar and natural fruit flavors.

Perrier:

Perrier is a leader in the international side since it focuses on an expansion strategy by penetrating many markets such as USA and Japan. Meanwhile, the brand gives a strong importance to the design of its packaging (glass, cans, fluorescent) in order to show the purity of its product and the festive aspect. Perrier targets mainly young segment so that they gain the loyalty of their customers in the long-term. Besides, Perrier wants to preserve an efficient communication through TV, press, posters, radio, cinema. As well, the brand uses non-media with direct marketing, sponsorship (Tour de France, Rugby), and promotion at the point of sale, and also it uses major events such as Roland Garros broadcasting audiovisual and advertising signs around the field.

Saint-Yorre:

St-Yorre positions itself on the health sector. It follows a strategy that fights against aging and bad digestion and also tries to differentiate itself by diversifying its products and thus by lunching energy drinks. In addition, St-Yorre created a bottle of collection for the festive season. However, St-Yorre is a follower and has to innovate more and establish strategies in order to be more competitive in the market of sparkling water.

San Pellegrino:

Competition is fierce; therefore, companies play on innovation card and focus on new advertising campaigns. They think to constantly renew types of consumers in order to keep or have the leading position. However, those brands have to consider the threats of substitution such as sodas. Therefore, their major indirect competitors are Coca, Cadburry Shweppes and Pepsico, which are giants that constantly innovate and diversify their products.

Target

- BADOIT :

As we already said before, Badoit's lightly carbonated water is intended to be drunk with meals. Its formula, making it help digestion is therefore aimed at everyone that cares about their health & body. Badoit conveys an image of a quality that is sound for the body.

Its main target is those with higher income, preferably living in urban areas and who go to the restaurants on a regular basis. In an interview given in 2010, Nathalie Puech-Alquier, Badoit's former official, stated that Badoit's original formula core target are adults from 40 to older. She also added
Badoit Intense, is more aimed at younger people who are looking for a "cool" drink.


- PERRIER :

Unlike Badoit, Perrier conveys a totally different message, thus reaching a different target. In the seventies, advertisers started launching offbeat advertising campaigns. The idea that appeared at that time (and that still continues to work nowadays) is that Perrier is THE drink to have a good time. Some raunchy TV spots back in the 90's (sometimes censored) alongside with glamourous partnerships (e.g. Dita Von Teese in 2010) added sexiness to the product, leading Perrier to become the "it" drink everyone needs in a party.

Stéphane Bartaire, marketing director for sparkling waters at Nestlé Waters France said that Perrier's main target is "glamourous high income individuals looking for a premium water". As its slogan shows "Perrier c'est fou!" Perrier is trying to seduce a trendy urban population that likes to be seen and to party. On the contrary, Perrier fines bulles, with its less carbonated water, is more willing to target restaurants, cafés & hotels in order to seduce gourmet lovers, that is to say an older population.

So Similar, Yet So Different.....

Drinking sparkling water has a significance for each one of us; more than that, we would say it is a question of personality. Because its taste is very specific and its composition different from one brand to the other, sparkling water drinkers are usually very faithful to the brand they like.

In the sparkling water industry, Perrier seem to have taken on a slight advantage over its longterm rival Badoit since 2005.

As we can see on this graph, in 2008, Perrier detained almost 22% of the sparkling water market share, closely followed by Badoit, in the second place, with 18% of the market share. Though they may seem alike, their composition is very different thus implementing different targets for each brand.

- BADOIT :

• Natural sparkling water (no gas added). Its water contains one of the highest rates of magnesium, making it an excellent choice for your meal to help you digest. Indeed, that has been Badoit’s motto since it has been found in the 18^th century; a fine sparkling water with natural small bubbles.
• 300 million bottles produced annually.
• 250 people working on site in Saint-Galmier.
• Built a strong partnership with restaurants and cafés - 25% of its production.
• Imported in more than 28 countries in the world.
• Packaging : The bottle has kept the same pure line since its creation, adding small "modern look" features over past.
• Format : Badoit is available in plastic bottles as well as in glass bottles for restaurants, hotels and cafés.
• Taste : Same formula since its creation. However, in 2004, Badoit launched Badoit Intense (with a red bottle), a big bubble water to compete with its direct competitor Perrier.
• Mainly directed to be consumed during the meal time. (Except for Badoit Intense).

- PERRIER :

• Natural sparkling water with added carbon gas, thus making its taste much more bubbly (big bubbles).
• Nearly 750 bottles produced annually
• 46% of its production exported to 114 countries worldwide.
• 1000 people working on site in Vergèze.
• Packaging : The bottle has kept the same shape since its creation, though its main logo has been modernized over the years.
• Format : Perrier is available in plastic bottles, cans and glass bottles.
• Taste : Same formula since its creation. However, in 2003, Perrier launched Eau de Perrier. This new, lighter formula with small bubbles, is meant to compete Badoit. Eau de Perrier clearly wants to impose itself on the market of "digestive sparkling waters". As soon as 2005, it was available in restaurants, cafés & hotels, though never being able to take the advantage on Badoit on this sector. In 2012, Eau de Perrier was rebranded Perrier fines bulles, making it simplier for customers to identify its nature.
• October 2012 : New partnership between Perrier fines bulles and the restaurant & cafés industry.
• Perrier original formula mainly targeted to festive consumption - ideal for parties. Its slogan "Perrier, c'est fou" clearly sets the trend of the drink: it is destined to those who want to reveal their wild side.

Main competitors for both companies : San Pellegrino, St-Yorre, Salvetat, Quézac, Eaux de Vichy.

Introducing....... BADOIT !

Type of water: Natural Mineral Water

Presentation: Water with gas

Country of origin: France

Region: Saint-Galmier, département de la Loire (Rhône-Alpes)

Year Established : 1838

Website : www.badoit.com

Badoit is known as one of the best mineral water, which is naturally carbonated. The “gourmet mineral water” is typically seen on the tables of restaurants, especially in France and is specially used to accompany fine food and wine.

Badoit water finds its way from the depths through a fissure about 500 meters into the granite, and comes to the surface with a natural gasification, which produces soft bubbles.

Badoit Innovations: Its elegant bottle modernized and now displays its strengths in all transparency: colorful bubbles and a smile expressing all the silver pleasure of a fine sparkle. Badoit Red is the finesse and the unique taste of Badoit with twice more bubbles: a sparkle both very intense and subtle. 

French water companies also claim that mineral waters are good for rheumatism, migraines and other illnesses.

Introducing...... PERRIER !

Type of water: Mountain Spring Water

Presentation: Water with gas (heavily carbonated)

Country of Origin: France 

Region: Vergèze, département du Gard (South of France)

Year established: 1863

Company: Nestlé

Website: www.perrier.com

Since 1992 Perrier belong to Nestlé. Both of them are trying to convince social drinkers to start buying Perrier instead of a soft drink. The popularity of the brand grew as refreshing, all-natural, no-calorie drink.

Perrier water is particularly defined by large bubbles, trying to stimulate so that the water flushes to the surface. The water is distinguished by its natural carbonation, which comes from volcanic gases in the rocks.

The aim of Perrier is to be present on different markets. Now the brand has a good place on the market of the mineral waters. In 2000 the brand launch a new packaging for its product, the bottle of 50cl made in plastic. Easy to take away, and in fact the new format of the bottle has a large success. In order to increase its market share, the brand launches a new product in 2002: Perrier Fluo. The target for this new product is especially young people. The bottles give an image of “funny with attractive colors”. The drink is a mix of Perrier with natural flavoring. There are 4 flavors: Peppery mint, Ginger/cherry, Lemon/juniper, Orange/leeches. In 2003, Perrier launch “ Eau de Perrier”, water with very thin bubbles easier to drink during the meal than the original Perrier.

World Consumption

On the international market, the sparkling water segment represents 17% of world consumption.

- We can see that Europeans annual consumption is superior to the French consumption in general.

- Sparkling water seems to be very popular in Europe by far compared to other parts of the world. Sparkling water is usually associated with sodas in other countries.

A Quick Overview at the Market

When you arrive at the restaurant, the waiter always asks the same question "Would you rather have still or sparkling water ?" French or Italian ? Bottled or jared ? With or without ice ? If you think these are too many questions, well, you haven't seen anything yet because there are so many sparkling waters on the market ! 

In France, there are about 110 brands of waters, whether it’s still, sparkling of flavored waters. The water industry is concentrated into the hands of 3 big groups:

• Nestlé (Contrex, Perrier, Vittel) 
• Danone (Evian, Volvic, Badoit)
• Alma (Cristaline, St-Yorre, Vichy Célestins)

The 3 of them account for almost 70 % of the national production in volumes, and about 80% in terms of money value. French consumers still have a preference for still water although sparkling water consumption has exploded over the past years. In 2011, natural still water represented almost 84% of the market share in terms of volume and 50,5% in terms of sales value for grocery stores and supermarkets, according to resellers.

According to a Secodip survey in 2006, 61% of French people buy at least 1 bottle of sparkling water per year.

We Like to Drink Bubbles......

We decided to discuss about sparkling waters on this blog because everyone one of us in our team likes to have some sparkling water once in a while. Though it can be for different purposes, sparkling water seems to be a funny alternative to the ordinary taste of still water... So, are you willing to explore the secrets of the sparkling water industry with us ?

Before going into further comparison between the 2 most important French sparkling waters, Badoit & Perrier, we will first have a look at the actual bottled water market in France and try to explain who the leaders are what the tendencies are.

To illustrate our ideas, we will explain the different trends and strategies both companies have used for the past decades, providing you detailed information, as well as pictures and visual support (commercials).