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Challenges of a local mark leader vis-a-vis the international concurrence (2004-2005)

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  1. Introduction
  2. Product Strategy
  3. Services in shops
  4. Price positioning strategy
  5. Strategy of targeting customer
  6. Diversification
  7. Loyalty
  8. Conclusion

As an iconic brand in Belgium, Spa Reine is a mineral water marketed by the Belgian group of Spadel. As a leader in the bottled water market, it is associated with sources of Spa that have been known since antiquity for its virtues. Queen Spa is a strong local brand that is sold mainly in Belgium and the Netherlands.

This brand, however, suffers from several years of intense international competition, mainly from the Evian and Vittel waters that belong to international groups that have very deep pockets (Danone and Nestle). In addition, Spa Queen faces the important development of brands in recent years which have gained a significant market share. Against this backdrop, suppose the Director General of Spadel just hired you as a new brand manager for Spa Queen. Your mission is to defend the leading position and profitability of the brand and all the challenges that it faces.

Your task will not be easy, as a local brand does not have unlimited funds. To ensure your new mission, the Chief of Spadel offers the information in this document that will help you understand the bottled water market, the competitors in attendance, consumption patterns and positioning of different brands on the market.

A thorough analysis of this information will provide the management with a reflection on the marketing strategy to adopt in the current environment of intense competition, in both international brands and private labels.

For centuries, the waters of Spa are renowned for their exceptional quality. In ancient times, they attributed the beneficial properties that were first used for local people before spreading worldwide. Pliny the Elder, the famous Roman naturalist who lived in the 1st century BC was in his time, spoke Spa speaking of a "fabulous fountain which bubbles sparkle."

This is the sixteenth century that we begin to market bottled water Spa in neighboring countries. Thus, at that time, the Spa water was carried by porters who traveled some 250 km loaded up with bottles destined for wealthy clients. So it's no coincidence that today, in the Anglo-Saxon countries or Japan for example, the generic term "Spa" means mineral water and a spa. From the seventeenth century, thanks to a tight corking, water Spa - can be stored longer - is exported around the world.

Passing quickly over several centuries of history, we can say that the Company Spa Monopole, Compagnie des Eaux Farmer and Bath Spa, was founded in April 1921. It will be managed in 1924by the family of Wood, currently still owns the group Spadel.

Over the years, Spa Monopole develops the sales volume and market share continues to rise. In 1942, the company absorbs the company Chevron, which operates water Bru, another local brand of Belgium.

Today, the Wood family is always present in the management of the company with Mark Wood, who manages with Jean-Philippe Despontin the family business. The latter holds 81% of the parent company of Spa Monopole, Spadel group listed on the Brussels Stock Exchange.

This group is now a Belgian industrial group whose activities are focused on the bottling and marketing of natural mineral waters of low mineralization, and a wide range of soft drinks and fruit syrups. Leading mineral water at home and in the Netherlands, Queen Spa is the flagship of Spadel. The group markets, in addition, water brands Barisart Spa, Spa Marie-Henriette Bru, Brecon and Spontin (UK). Other products based on water sources Spa are also on the market: Spa Lemon Vitamin C and a range of drinks and lemonades flat Spa & Fruits declined in many flavors. Kinji, a fruit drink of water-based spa, juice and powder and cream completes the range.

Tags: Spadel Group; challenges of a local leader

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