Please read the attached case study 2X and be prepared to discuss and respond to the following assignment questions:

Harmonie Water: Refreshing the World Naturally

China is different from the rest of the world. Its tough to overcome cultural differences.

Shiu Zhou, Harmonies China country manager

In July 2016, Antoine Comeau, Marketing Director of Harmonie Water, was reviewing market research for Harmonie, the second-best-selling bottled water in both its home country of France and worldwide. Comeau planned to use this research as part of a campaign that would combine event sponsorships and television advertising with newer, interactive, online media. One task force, Project Unify, had identified characteristics that consumers universally associated with Harmonie. The second, Project Aqua, extended the results of Project Unify. It proposed revitalizing and refined as Harmonies core themes.

Comeau also had to decide how much to standardize Harmonies brand image and advertising. Shiu (Steve) Zhous response when Comeau had told him his goals had stayed with him: China is different from the rest of the world. Its tough to overcome cultural differences. Comeaus response, Steve, we need a cohesive global brand as we attempt to leverage synergies across markets and enhance new adopters interest in Harmonie, did not convince Zhou, who replied, I must respond to my local markets needs. Zhous reservations underscored the potential difficulty of implementing his initiatives, but Comeau felt he had to act soon because the industry was globalizing rapidly.

The Global Bottled Water Industry

Consumption Trends

Bottled water was first sold in Western Europe, but was now consumed worldwide. Total global consumption in 2015 was 81.5 billion gallons (308.5 billion liters),1 or 11.2 gallons per capita, up 33%

between 2010 and 2015. Worldwide sales revenues were $95.7 billion. Table 1 presents consumption volumes and compound annual growth rates (CAGR) for bottled water by geographic region in 2015.

Table 1 Consumption of Bottled Water by Region

Volume (%)

28.3 0.3

CAGR (%) 20102015 PCC (gallons)a

9.7 5.7 5.6 7.9

CAGR (%) 20102015

9.7 4.0 1.5 3.7 7.2 2.6 1.4

Asia Pacific Australasia Eastern Europe Latin America Middle East and Africa North America Western Europe

aPCC = per capita consumption

5.4 1.5 15.3 4.8 17.9 9.7 13.5 3.4 19.3 1.9

13.4 19.9 10.5 13.8 31.9

Consumption of bottled water also varied considerably within geographic regions. For instance, although the Asia Pacific region had the lowest per capita consumption (PCC) in the world, some countries in the region, such as Indonesia and the Philippines, consumed far more than neighboring countries did. Exhibit 1 lists PCC for selected countries.

Consumers in developed nations drank more bottled water to avoid sugary drinks. For them, bottled water was a source of both hydration and vitamins, minerals, antioxidants, etc.so-called functional water. In contrast, consumers in many developing countries used bottled water as an alternative to unsafe tap water; lower-priced purified water had spurred growth in these countries.

Global Fragmentation and Consolidation

Local brands often dominated their home markets. Top brands in the United States, for example, included Aquafina, Dasani, Glaceau Vitaminwater, and Poland Spring. In China, the top brands were Nongfu Spring, Master Kong, Cestbon, and Mizone.

Global bottled-water producers, such as Nestle (Nestle Pure Life), Suntory Water Group, Danone (Evian), Coca-Cola Company (Dasani), PepsiCo (Aquafina), VOSS, Icelandic Water Holdings, and the Harmonie Group, owned many leading brands. Nestle owned 64 bottled-water brands, including Pure Life, Perrier, and San Pellegrino; Nestle Pure Life held the number one market share worldwide.

Premium Segment

The premium segment of the market was growing due to new segments such as enhanced/water plus. There was, however, no definitive or technical definition of premium bottled water. Marketers typically differentiated premium waters by focusing on mineral levels, purity, pH levels, and presentation. Distinctive packaging could elevate water to premium status in some consumers eyes. A few ultra-premium waters, such as Iluliaq, sold for over $50 per bottle, although most popular premium brands, such as Perrier, Evian, Fiji, VOSS, and Harmonie, sold for less than $5 a bottle.2

Other aspects of marketing premium water varied widely. Some brands used high prices to signal prestige, while others used low prices to gain market share. Different perceptions about when it was appropriate to consume a premium water also affected marketing campaigns.

1. Is Harmonie a global brand? Why? or Why not?

2. Discuss the findings of Projects Unify and Aqua as they pertain to building a global brand for Harmonie.

3. Elicit ideas on key steps/activities for establishing the Harmonie brand, especially for advertising's role.

4. Explore the factors Comeau should consider in deciding how much to standardize or customize brand identity and communications.