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1、 1 / 32 MARKETINGMARKETINGMARKETING STRATEGYSTRATEGYSTRATEGY PLANPLANPLAN OFOFOF THETHETHE KUNLUNKUNLUNKUNLUN MOUNTAINSMOUNTAINSMOUNTAINS MINERALMINERALMINERAL WATERWATERWATER By: Sixiao Wu 2 / 32 Table of Contents I Abstract4 SECTION ONE Vision and Mission Statement .5 Introduction5 Long-term Objec
2、tive6 Vision.8 Mission.8 SECTION TWO External Audit Analysis.10 External Audit10 Opportunities10 Threats10 EFE Matrix.11 CPM Matrix 12 3 / 32 Table of Contents II SECTION THREE Internal Audit Analysis.13 Strengths get more and more loyalty of its customer. In the hand of channel, it still can make f
3、ull use of Red-canned Wong Lo Kats channels, also develop new channels. After researching, there are many projects and solutions to be mentioned in this article. 5 / 32 Industry Background Nowadays people are no longer thought that the function of water is only for thirst. They are taking more consi
4、deration of health than before. With the improvement of living standards, a large consumption group in medium and large cities has formed. There is a potential market in High-End bottled water. In China, bottled water has 20 more years old history, from distilled water, pure water then to recent min
5、erals water, additional value of water become the core competitiveness. Pure water although holds huge market share, but for the view of sales growth and market space close to saturation that has been in market mature stage, relative to it, mineral water contains rich minerals and trace elements, be
6、neficial to health become popular with high growth in market. but the majority of Chinese enterprises have enough production capacity and capital to produce High-End water, but lack of brand awareness and strategic perspective, due to this High-End water market has only a few foreign brands, such as
7、 Evian. This could fully disclose that Chinese domestic brand of high-end water in brand vacancy era. JDB Group JDB was found in 1995, is a set of development, production and sales of integrated beverage enterprise. In 2008，JDB Group contributed a hundred million RMB for the earthquake of Sichuan pr
8、ovince. JDB become the household name over night. The star products Red-canned Wong Lo Kat makes a miracle by annul sales from millions to billions at the same year. In 2010, it contributes a hundred million RMB again for the earthquake of Qinghai province. JDB as a public-spirited enterprise has st
9、rong impress for all Chinese. 6 / 32 Long-term Objective: become a world famous enterprise; produce top quality and health product. JDB Culture: enterprising; pragmatic; responsible; creative and unity. Proprietary Brand: Kunlun Mountain mineral water Since 1999, the development team of JDB has star
10、ted to discover the best natural drinkable water in mainland. In 2009, Kunlun mineral water has been trial at both Shenzhen and Wenzhou these two cities, they achieved great success of build up the relationship with consumer emotionally. As a result of this success, it keeps sales growth and got loy
11、alty customer group as well. Also be official appointed bottled water of Guangzhou Asian Games 2010; official appointed bottled water of National Tennis and provide banquet drinking water for The Great Hall of People. April. 2010, the proprietary brand Kunlun mountain mineral water into the market f
12、ormally, Its a product which actual led by quality.JDB development team spent ten years to find the ideal water source. Finally got at an altitude of Kunlun Mountain 6178 meters, where produce top quality mineral water. In order to maintain the Kunlun mountain mineral water natural remarkable qualit
13、y, the factory located at such high altitude area. The factory of Kunlun mineral water, altitude 4000 more meters, Factory is located in the Kunlun mountains 4115 meters altitude, adopting 6178 meters altitude of water resources, and 100% zero pollution auto-canned. Using the most strict environment
14、al protection measures, establish fourfold water protection system, protection area about 11.15am square kilometers to ensure the top quality. 7 / 32 Unique Water Source Kunlun Mineral Spring Water The Core Value of Kunlun Mineral Water: Water from the Kunlun Mountains which is rises 6,000 meters ab
15、ove sea level and ice remain all the year round. The water is natural and pure; its over 50 years of deep underground filtration. Rare Ionized Microcluster Alkaline Water is easy for the body to absorb. Contains strontium, potassium, calcium, sodium and magnesium, which are beneficial to health PH v
16、alue appeared to alkalescency, which are beneficial to health Half-width of the Kunlun Mountains Mineral Water is less than 90HZ is the rare Ionized Microcluster Alkaline Water, and the normal activated water.Inferred by the data of isotope-O18 detection, formation age of the Kunlun Mountains Minera
17、l Water is about ten thousand years ago. According to the results of tritium of mineral water test inferred, the cycle time of Kunlun Mountains Mineral Water is over than 50 years, so that the supply source is ice water from the deep-underground. Every bottle of Kunlun mountain mineral water needs t
18、o pass the 232 item strict standard test to guarantee the top quality. (Source from: National natural mineral water technical review group create advanced management ideas and operational philosophies. Provide the best bottled water worldwide. Mission statement Improve brand image of Kunlun Mountain
19、 Mineral Water, Create the blue ocean of domestic high-end mineral water, take the social responsibility, and develop in the way of strengthening environmental, health and philanthropy. The Michael porters Five Forces Model Analysis With the improvement of living level, more and more people start to
20、 think about how important of the drinking water. The change of life style people through choose health product for themselves. So the get interesting on the High-End drinking water. We will use the Michael porters Five Forces Model to analysis and see how these factors interact with each other. 9 /
21、 32 1. The rivalry among competing sellers At present, in Chinese High-End water industry, there are two kinds of competitors, foreign brand such as Evian, Perriers Water and FIJI Water. Others are domestic brand, like LEBAISHI, WAHAHA, and WATSONS and so on. The No.1 rivalry in High-End water is Ev
22、ian which occupy the largest market share. But Evian is limited by the product position and pricing. And other domestic bottled water providers, most of them aim to the Low-End water in order to keep cost advantages. As a result, Kunlun Mineral Water well positing itself to occupy the blue ocean pla
23、ys up strength and avoids weakness. 2. Potential new entrants According to the profitability of this new market gap, other strong brand both international and domestically might entry this market in the near future. Such as Starbucks and other related companies which not entry bottled industry yet.
24、3. Substitute suppliers 5100 Tibet Glacier Mineral Water, which use water source from prehistoric glacier at Tibet. It has the similar characteristics as selling point with Kunlun Mountain mineral water. Both of these tow product are scarce, pure, natural, only if differ them by different concept of
25、 product and different culture and religion factors as well. 4. Suppliers analysis Kunlun Mountain mineral water is self-owned brand belong to JDB Group, it has a very stable supply of raw materials. Because of they use advanced equipment which import from Germany. full auto-system to get the water
26、source totally without anthropogenic influence. 10 / 32 5. Buyer analysis The price setting of Kunlun Mountain mineral water is 5 RMB per 510ml bottle. It relate with production costs. Comparing with other High-End mineral water brand, this price got absolute advantage. Because of its affordable, th
27、is price will strong its target group, let more and more people have a try of High-End Water. External Audit Opportunities 1. Products suitable for all the people all age. 2. Nowadays people care about health rather than price. 3. High profit margin; High growth; large market gap in High-End drinkin
28、g water industry. 4. There is no any competitors occupy high market share in this industry domestically. 5. Powerful go to bottled water market. 6. Do not have strong domestic brand in this market currently. Threats 1. Lack popularizes awareness of product concept. People dont understand the differe
29、nce among these bottled waters. 2. Substitute products. 3. Intense rivalry by new firms entering. 4. Evian has largest share in market. 5. Other International corporations entry Chinese High-End water market. 6. A deteriorating economy. 11 / 32 External Factor Evaluation ( EFE ) Matrix Critical succ
30、ess factors WeightRatingWeight score Opportunities 1. Products suitable for all the people all age. 0.06 4 0.24 2. Nowadays people care about health rather than price.0.11 3 0.33 3. High profit margin; High growth; large market gap in High-End drinking water industry. 0.08 3 0.24 4. There is no any
31、competitors occupy high market share in this industry domestically. 0.11 3 0.33 5. Powerful go to bottled water market.0.11 30.33 6. Do not have strong domestic brand in this market currently. 0.05 3 0.15 Threats 1. Lack popularizes awareness of product concept. People dont understand the difference
32、 among these bottled waters. 0.05 3 0.15 2. Substitute products.0.05 1 0.05 3. Intense rivalry by new firms entering.0.13 2 0.26 4. Evian has largest share in market.0.16 2 0.32 5. Other International corporations entry Chinese High-End water market. 0.04 2 0.08 12 / 32 6. A deteriorating economy.0.
33、05 3 0.15 Total 1.00 2.63 CPM Competitive Profile Matrix 5100 Tibet glacier water Evian Kunlun mineral water Critical success factorsWeightRating Weight score Rating Weight score Rating Weight score Market share0.02 30.06 40.08 30.06 Product quality0.09 30.27 30.27 30.27 Customer service0.09 40.36 4
34、0.36 40.36 Organizational structure0.05 40.20 40.20 40.20 Price competitiveness0.10 20.20 30.30 30.30 Financial position0.09 40.36 40.36 40.36 Customer loyalty0.10 40.40 40.40 40.40 Global expansion0.08 30.24 40.32 30.24 Advertising 0.09 30.27 40.36 30.27 Social responsibility0.09 30.27 40.36 30.27
35、Quality of management0.08 20.16 30.24 40.32 Size of product line0.12 20.24 30.36 30.36 Total 1.00 3.03 3.61 3.41 13 / 32 Internal Audit Strengths 1. Top-quality water source from more than 6000 meters above sea level with at least 50 years subsurface mineral filter. 2. Unique value of Kunlun culture
36、. 3. Well-known brand, rely on the great success of Red-canned Wong Lo Kat. 4. Well public-spirited brand image. 5. World class production line equipments to ensure water source Zero Pollution 6. Long-term reputation, High brand awareness. 7. Diverse line of products to satisfy different needs in ma
37、rket. 8. Nice marketing plan consistent with provide the best water for Chinese 9. Advanced distribution channel management 10. The pricing strategy makes most of people fell affordable and acceptable. Weaknesses 1. One product only. 2. High production cost. 3. Lack innovation of selling points. 4.
38、Only one packaged size, difficult to meet the different needs of consumer. 5. Increate forms of advertisement. Internal Factor Evaluation ( IFE ) Matrix Critical success factors WeightRatingWeight score 14 / 32 Strengths 1. Top-quality water source from more than 6000 meters above sea level with at
39、least 50 years subsurface mineral filter. 0.06 4 0.24 2. Unique value of Kunlun culture.0.11 40.44 3. Well-known brand, rely on the great success of Red-canned Wong Lo Kat. 0.08 3 0.24 4. Well public-spirited brand image0.05 3 0.15 5. World class production line equipments to ensure water source Zer
40、o Pollution. 0.05 2 0.1 6. Long-term reputation, High brand awareness.0.05 40.2 7. Diverse line of products to satisfy different needs in market.0.03 20.06 8. Nice marketing plan consistent with provide the best water for Chinese. 0.114 0.44 9. Advanced distribution channel management0.0530.15 10. T
41、he pricing strategy makes most of people fell affordable and acceptable. 0.052 0.1 Weaknesses 1. One product only. 0.08 30.24 2. High production cost.0.05 10.05 3. Lack innovation of selling points0.11 20.22 4. Only one packaged size, difficult to meet the different needs of consumer. 0.09 2 0.18 5.
42、 Increate forms of advertisement.0.03 2 0.06 Total 1.00 2.87 15 / 32 SWOT Matrix Analysis S O StrengthWeakness S-O strategyW-O strategy Opportunity Give full play of Red- canned Wong Lo Kats advantages； entry new markets based on well brand image; Diversification; Change the current situation of sin
43、gle product; Provide different size of the bottle; Develop new channels; S-T strategyW-T strategy Threat Keep core competitiveness of consumer awareness with scarcity value of Kunlun Water to comparing with other low cost competitors Reduce cost； Develop new technology； Adapt to the change of consum
44、er and market worldwide. In my opinion, JDB Group should take the S-O Strategy (Strength-Opportunity) Strategy). Base on the internal advantages to catch up External opportunities which called Growth Strategy. On the other hand, with the view of improving Kunlun Waters brand awareness on the basis o
45、n the well brand image and influence, seize the market opportunities of Chinese High-End bottled water market gap closely. 16 / 32 Strategic Position and Action Evaluation Matrix FS Conservative6Aggressive 5 4 3(x= 3.8 y= 2.4) 2 CA 1 IS -6-5-4-3-2-1123456 -2 -3 -4 Defensive-5Competitive -6 ES Financ
46、ial StrengthEnvironmental Stability Return on Investment6Rate of Inflation-1 Leverage6Technological Changes-5 Liquidity6Price Elasticity of Demand-4 Working Capital5Competitive Pressure-1 Cash Flow5Barriers to Entry into Market-5 Financial Strength Average5.6Environmental Stability Average-3.2 Compe
47、titive AdvantageIndustry Strength Market Share-1Growth Potential6 Product Quality-2Financial Stability4 Customer Loyalty-1Ease of Entry into Market4 Technological Know-how-1Resource Utilization6 Control over suppliers and distributors-2Profit Potential6 Competitive Advantage Average-1.4Industry Stre
48、ngth Average5.2 Y-axis = FS + ES = 5.6 3.2 = 2.4 X-axis= CA + IS = 5.2 1.4 = 3.8 17 / 32 Grand Strategy Matrix Rapid Market Growth Quadrant-2Quadrant- 1 Weak Competive Position Strong Competitive Position Quadrant- 3 Quadrant- 4 Slow Market Growth By analysis, JOB Company located at the first quadra
49、nt. It takes advantages both rapid market growth and strong competitive position. Continue focus on Target market, keep develops its product and deep market penetration is the best strategy. There is unreasonable to deviates the existing competitiveness. But JOB company over rely on the single product Red can Wong Lo Kat, integration strategy might help to reduce the risk by narrow product line. JOB Company should look for new opportunities. Such as cooperate with other dominant firms to gain advantages in certain market.