Icelandic Glacial is a Make of Bottled Natural Spring Water from Olfus, Iceland. This company was established in the entire year 2004 and its headquarter is within Hlidarendi, Olfus, Iceland. The company is a sole proprietor company and dealing with the production and selling of the bottled water around the world. With its initiation, the business started the business in Iceland only and in the entire year 2005, it started exporting the branded water in bottles to several other countries like USA, Germany, France, Mexico, UK and Canada. The company has quite strong credentials and the bottling plant and the product finished by the business is accredited by NSF International.
According to the business, customers buy Icelandic Glacial as their best choice because of the source of unparallel purity which is free of contamination, high quality bottle design which is completely recyclable; it is considered to be affordable luxury, it is green and last, but not minimal, it is NSF certified.
Home market for Icelandic Glacial Packaged drinking water is Iceland from where in fact the product is produced. Target market for Icelandic Glacial is mainly schools and university canteens, various offices and households (especially bigger bottles), several grocery stores, etc. If segmentation of the target market of Icelandic Glacial is performed, there are mainly three segments that may be identified clearly. These are the following:
Foreign tourists: They are the people who really do not prefer to drink the standard water from anywhere as a result of health safety purpose.
Domestic tourists: These are individuals who actually don't waste time to find water from here and there and would spend cash and devote their amount of time in roaming around.
Health conscious people and fashionable people: These are people who do not like to drink normal water ever and present priority to mineral water. Mineral water in addition has become a brand recognition as several people consider it a symbol of high class.
Especially, people of age group 20 to 35 years is the main target market for Icelandic Glacial in the home country i. e. Iceland. The primary motive of Icelandic Glacial was to create high quality water in bottles not a low quality product which the majority of the other companies produce.
Brief summary of the product's/service's competitive strategy, marketing program, and positioning in the home market
Competitive strategies of Icelandic Glacial add a high concentrate on packaging quality and a cautious placement of the merchandise as a preferred brand on the market. However, the company had a spoilt image in other countries, not because of its product quality but a spill-over aftereffect of the "bad name associated with Iceland". This had given an enormous advantage to the competitors. To overcome this problem, the company developed another type of bottle with an art work on it and it really worked. It looked as if there is an ice formation on the bottle which really attracted individuals. It created a landscape kept in the shelves of the stores just through change in the style.
In order to get an edge in the market, the owner of the business used his contacts available and the film industries which resulted in Icelandic water to be there atlanta divorce attorneys party and even at every film festivals (Birchal, 2007).
Promotional video has been on the website of the company with two very beautiful women showing the bottle of Icelandic Glacial on the key page of the web site to attract customers
Icelandic Glacial positioned the packaged normal water in the market through various successful marketing strategies. To be able to position the merchandise in the market, the company used some very powerful slogans such as: "Icelandic Glacial is the purest water; it is eco-friendly; it is certified by NSF; the bottles contain the best physical structure"; etc.
There are more of strengths of the marketing programs which have been implemented by the business than its weaknesses.
Icelandic Glacial is the purest bottled water on the globe;
It is eco-friendly and has zero carbon footprints;
It is certified by NSF;
the bottles possess the best physical structure and are recyclable;
Company has gained recognition in the global market;
People got quite definitely attracted by the bottle designs
It was observed in the film festivals which really helped too much to increase the sales of the product
Company had to spend a lot of money to gain the recognition in the market
Company has not established vast and firm global presence;
Company has no existence in the UAE beverage or bottled water market.
UAE is a very rich country with very high per capita income;
Large and incredibly active demand for quality bottled water
Unsaturated market expansion possibilities to other GCC countries
Competitors on the market - size and strength
Government protection of domestic suppliers
Icelandic Glacial is marketed and distributed in large countries including the USA, Germany, France, Mexico, UK and Canada. The business entered US in the year 2005 where after being a bad reputation of water being associated to Iceland, company made a stunning reputation. At the moment scenario, American company, Anheuser-Busch has around 20 percent stake in Icelandic Glacial.
Icelandic Glacial is with the capacity of producing 30, 000 bottles within an hour. Another type of distribution occurs in Canada, UK and Netherlands. Recently, Icelandic Glacial entered in to the market of China. This packaged drinking water is known because of its purity and zero carbon footprints and incredibly much renowned in Europe and North America. It really is now entering into the beverage market of China to increase its footprint all across the entire world (Icelandic Glacial Enters China Beverage Market, 2010). China Water and Drinks is the business which is the subsidiary of an US company Heckmann Corporation Inc. which is taking the responsibility of distribution of Icelandic Glacial in China. It is distributed to all or any the mentioned companies by various very renowned companies in the sector of water supplies.
With such a huge and increasing global distribution and recognition as the purest water in bottles on earth with zero carbon footprints, Icelandic Glacial gets the capable of launching its product successfully in the UAE that could prove a major market for Icelandic Glacial. UAE, being one of the fast developing countries of the world can simply welcome the product with a huge sale all across the country. There is a huge chance for Icelandic Glacial to enter the UAE beverage market and compete with the prevailing products in its field. Icelandic Glacial may find UAE to be always a very successful place like the USA.
Business Model which is often used by Icelandic Glacial for expanding its business in UAE is "Distribution Business Model" where the company which has started its business from Iceland, and expanded its business to various countries of the world by distributing its product in the foreign market. UAE will be the next foreign branch of the company in which it will expand its distribution services. Main cost drivers for Icelandic Glacial in UAE for setting up its feet in the market could be huge promotional cost, plant setting up cost, cost of distribution channels, etc.
There are nearly every company which has its office in UAE and large numbers of hypermarkets and shopping complexes.
7. 5 Million
10 Million per year
Treat it as necessity and many treat it as hygienic
Do not trust on regular water
Urban as well as Rural
Urban and sub urban
Very often (purchase it as a normal product)
Value in the market
Value in the market
Potential Segment for Icelandic Glacial in UAE bottled water industry could be huge numbers of foreign tourists coming, increasing population in UAE. College and school canteens, health conscious people, offices, households, etc can be considered as the prospective market for the company.
Bottled water business in the united states accounts for more than 40 percent of the total drinking water which gives up an enterprise of AED 570 million (UAE's Bottled Water Industry Set to Sustain Growth by Boosting Capacity, 2009). Demand for drinking water in the united states will upsurge in future due to upsurge in population and tourism. Present companies, for example, Al Ain is planning to expand its business in UAE. This means that there could be a huge projected growth for Icelandic Glacial in the country once it finds a good place in the market.
Most of the more developed brands in the country produce 15, 000 of 1 1. 5 l bottles within an hour. Thus, we can assume that at the starting we could produce 5, 000 to 7, 000 and in future could easily compete with the competitors.
The industry is not that price sensitive but price should not be high or suprisingly low. It should be kept as the industry average. The industry average for 1. 5 liter packaged drinking water in UAE is between AED 5 to AED 7 for a 1. 5 liter bottle.
There are a huge number of competitors on the market like PepsiCo Aquafina, The Coca Cola Company Kinley, Nestle Purelife, Masafi mineral water, Al Ain Mineral water, Gulfa, etc which absolutely satisfy the needs of the clients with Al Ain being the topper in the list with 40 percent share on the market.
I would recommend Icelandic Glacial to enter into UAE market since there is high need of water market in the united states which is also a fact that almost 40 percent GDP of UAE is dependant on this business. In spite of the fact that there surely is a high degree of competition on the market, but still market is so high that surviving is super easy.
But to be able to gain a considerable amount of market share, it is necessary for the company to pursue the clients to buy the product which could be done by high level of promotion of Icelandic Glacial in the neighborhood market as taglines like "the purest water on earth", etc.
Benefits: UAE is a country where there is a huge need for drinking water. It is market which earns the highest per capital income from packaged drinking water when compared with any other part of the world.
Point-of-resistance: There will be huge competition in the market. Almost every single international brand is present and along with that there are several big and small local brands as well.
Product i. e. Water in bottles market is in the maturity stage and this is the reason that Icelandic Glacial is confident enough to enter the market and get a great deal of success. But as the merchandise is in maturity stage it is really difficult to get plenty of market share as there are still companies who've made their brands for the past a long time.
Bargain power of the Suppliers: It totally will depend on the geographical location of the country. There is a huge problem of drinking water in the country as you can find inadequate way to obtain water.
Substitute Product: Cold drinks, tea, coffee, juice, etc. can be viewed as as the substitute products
Bargain power of Buyers: Customer has a lot of choices in the market as there are a lot of brands of packaged drinking water exist in today's market
New Entrants: Market is in its maturity stage, hence there may be just entrants in the market
Rivalries: There is an oligopoly competition on the market as the marketplace is within maturity phase (Bottled Water Industry and Competitive Environment Analysis, 2009).
Major rivals for Icelandic Glacial in UAE could be PepsiCo Aquafina, The Coca Cola Company Kinley, Nestle Purelife, Masafi mineral water, Al Ain Mineral water, Gulfa, etc.
PepsiCo Aquafina: This Company uses natural and underground water which makes it not the same as the other brands available in UAE
Nestle Purelife: Purelife is imported in the country from Saudi Arabia and it promoted with a statement onto it label that Purelife is water via natural spring and deep well.
Masafi mineral water: This is a local company in UAE which is situated in Ras Al Khaimah. It positions itself on the market by its superior quality product with ISO 9002 and ISO 9001:2000 certifications.
Al Ain Mineral water: Clear leader in the cities like Abu Dhabi and Al Ain with an increase of than 40 percent share in the market. It positions itself with great quality product and high customer loyalty.
There are several marketing programs done by various brands in the country. For example, Al Ain, which is the brand with maximum percent share in the market, is sponsoring Al Ain International Aerobatics Championship of 2008 (Al Ain Mineral Water, proud sponsor of the Al Ain Air Show introduces bottle recycling programme, 2008). Misafi Mineral Water developed a flavored mineral water to be able to give customers a blend of sweet drink and clear water. There are a few other efforts created by several companies for establishing their brands in the market through television set ads, newspaper ads, banners, etc. All the market programs done have succeeded only because of the fact that there surely is huge need of drinking water in the country.
Icelandic Glacial is a company which promoted its water in Film award function in the starting of its business in US. This totally means that Icelandic Glacial is with the capacity of doing its marketing program in UAE due to the huge organizational as well as financial infrastructure available with the country.
There are a very many competitors on the market however in spite of that there is a huge scope for Icelandic Glacial to sustain in the market due to fact that require because of this product in UAE is huge. At the moment, there are virtually all the international big banners in neuro-scientific packaged normal water within UAE with enormous number of local manufactures. Included in this Al Ain is a company which takes the utmost position on the market with 40 percent of the marker share.
UAE is a country which is very much indeed attractive for a business of packaged drinking water. According to some previous statistics, UAE has the highest per capita income through the packaged normal water business. Which means that market for Icelandic Glacial is to a higher degree certain and there is absolutely no doubt about that.
Competitors for Icelandic Glacial in UAE possess the strength that they are more developed in the united states especially Al Ain, which includes huge share in the market but these businesses have weakness that there are so many companies in this industry that maybe it's possible that the qualities of zero carbon footprint, eco-friendliness and purity of this inflatable water could permit Icelandic Glacial to determine a niche on the market.