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1、MARKETING STRATEGY PLAN OF THE KUNLUN MOUNTAINS MINERAL WATERBy: Sixiao Wu Table of Contents IAbstract4SECTION ONE Vision and Mission Statement5Introduction5Long-term Objective6Vision8Mission8SECTION TWO External Audit Analysis10External Audit10Opportunities10Threats10EFE Matrix11CPM Matrix 12Table
2、of Contents IISECTION THREE Internal Audit Analysis13Strengths & Weaknesses13IFE Matrix13SWOT Matrix Analysis15Strategic Position and Action Evaluation Matrix16Grand Strategy Matrix17GE Matrix18QSPM Matrix21SECTION FOUR Making Marketing Strategy23Product23Price24Promotion24Public relationship26Place
3、 (Channel)26Brand and Packing Strategy27Conclusion29Recommendation30Bibliography31AbstractBase on the great success of Red-canned Wong Lo Kat herbal tea which create sales miracle from millions to billions, JDB becomes a well-known company in China. But its star product Red-canned Wong Lo Kat is a r
4、ental brand from GUANGYAO Group, valid until year 2020. In order to reduce the risk of over rely on single product with single brand, JDB Group wants to build on the momentum, create its proprietary brand. JDB use about ten years to discover the best natural drinkable water source at the Kunlun Moun
5、tain. A new brand Kunlun mineral water emerges at the right moment. This action also exposes that JDB Group entry the diversified developing strategic stage. Nowadays the bottled water industry is developing fast, and rival ship is increasingly intensification. After analysis major factors of Kunlun
6、 mineral water, the question it is facing in todays complex marketplace has been researched in this article. In Chinese mainland, there is no really middle-class. In the bottled water market, there is a big gap between High-End and Low-End water. How JDB Group have seized this opportunity will be de
7、tails as well. In the hand of brand, volatility of consumer preferences made company must continually have new factors and in topic. Kunlun water must enlarge its region; get more and more loyalty of its customer. In the hand of channel, it still can make full use of Red-canned Wong Lo Kats channels
8、, also develop new channels. After researching, there are many projects and solutions to be mentioned in this article.Industry BackgroundNowadays people are no longer thought that the function of water is only for thirst. They are taking more consideration of health than before. With the improvement
9、 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 minerals water, additional value of water become the co
10、re 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, beneficial to health become popular with high growth i
11、n 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 Evian. This could fully disclose that Chinese domes
12、tic brand of high-end water in brand vacancy era.JDB GroupJDB 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 province. JDB become the household name over night. The
13、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 strong impress for all Chinese. Long-term Objective: bec
14、ome 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 started to discover the best natural drinkable water in mainland. I
15、n 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 loyalty customer group as well. Also be official appointed bottled
16、 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 formally, Its a product which actual led by quality.JDB developm
17、ent 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 quality, the factory located at such high altitude area. The factory
18、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 environmental protection measures, establish fourfold water protection syst
19、em, protection area about 11.15am square kilometers to ensure the top quality. Unique Water Source Kunlun Mineral Spring WaterThe Core Value of Kunlun Mineral Water: Water from the Kunlun Mountains which is rises 6,000 meters above sea level and ice remain all the year round. The water is natural an
20、d 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 value appeared to alkalescency, which are beneficial to healthHalf-width
21、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 Mineral Water is about ten thousand years ago. According to the results of trit
22、ium 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 to pass the 232 item strict standard test to guarantee the top quality. (S
23、ource from: National natural mineral water technical review group & Natural mineral water committee of China Mining Association)Vision statement Wong Lo Kat will display its unique brand value; create advanced management ideas and operational philosophies. Provide the best bottled water worldwide.Mi
24、ssion statementImprove brand image of Kunlun Mountain 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 AnalysisWith the improve
25、ment of living level, more and more people start to 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
26、see how these factors interact with each other.1. The rivalry among competing sellersAt 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
27、. The No.1 rivalry in High-End water is Evian 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 po
28、siting itself to occupy the blue ocean plays 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 compan
29、ies which not entry bottled industry yet.3. Substitute suppliers5100 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, onl
30、y if differ them by different concept of product and different culture and religion factors as well.4. Suppliers analysisKunlun 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 Germa
31、ny. full auto-system to get the water source totally without anthropogenic influence. 5. Buyer analysisThe 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.
32、Because of its affordable, this price will strong its target group, let more and more people have a try of High-End Water. External AuditOpportunities1. Products suitable for all the people all age. 2. Nowadays people care about health rather than price.3. High profit margin; High growth; large mark
33、et gap in High-End drinking 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. Threats1. Lack popularizes awareness of product concept. People dont
34、 understand the difference 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. External Factor Evaluation ( EFE ) MatrixCri
35、tical success factorsWeightRatingWeight score Opportunities1. Products suitable for all the people all age. 0.06 40.242. Nowadays people care about health rather than price.0.11 30.333. High profit margin; High growth; large market gap in High-End drinking water industry.0.08 30.244. There is no any
36、 competitors occupy high market share in this industry domestically.0.11 30.335. Powerful go to bottled water market.0.11 30.336. Do not have strong domestic brand in this market currently.0.05 30.15Threats1. Lack popularizes awareness of product concept. People dont understand the difference among
37、these bottled waters. 0.05 30.152. Substitute products.0.05 10.053. Intense rivalry by new firms entering.0.13 20.264. Evian has largest share in market.0.16 20.325. Other International corporations entry Chinese High-End water market.0.04 20.086. A deteriorating economy.0.05 30.15Total 1.00 2.63 CP
38、M Competitive Profile Matrix5100 Tibet glacier waterEvian Kunlun mineral waterCritical success factorsWeightRatingWeight scoreRatingWeight scoreRatingWeight scoreMarket share0.02 30.06 40.08 30.06 Product quality0.09 30.27 30.27 30.27 Customer service0.09 40.36 40.36 40.36 Organizational structure0.
39、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 Quality of management0.08 20.16 30.24
40、 40.32 Size of product line0.12 20.24 30.36 30.36 Total 1.00 3.03 3.61 3.41 Internal AuditStrengths1. 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.3. Well-known brand, rely on the great success
41、of Red-canned Wong Lo Kat. 4. Well public-spirited brand image. 5. World class production line equipments to ensure water source Zero Pollution6. Long-term reputation, High brand awareness.7. Diverse line of products to satisfy different needs in market.8. Nice marketing plan consistent with provide
42、 the best water for Chinese9. Advanced distribution channel management10. The pricing strategy makes most of people fell affordable and acceptable.Weaknesses1. One product only. 2. High production cost.3. Lack innovation of selling points.4. Only one packaged size, difficult to meet the different ne
43、eds of consumer.5. Increate forms of advertisement.Internal Factor Evaluation ( IFE ) MatrixCritical success factorsWeightRatingWeight score Strengths1. Top-quality water source from more than 6000 meters above sea level with at least 50 years subsurface mineral filter.0.06 40.242. Unique value of K
44、unlun culture.0.11 40.443. Well-known brand, rely on the great success of Red-canned Wong Lo Kat.0.08 30.244. Well public-spirited brand image0.05 30.155. World class production line equipments to ensure water source Zero Pollution.0.05 20.16. Long-term reputation, High brand awareness.0.05 40.27. D
45、iverse line of products to satisfy different needs in market.0.03 20.068. Nice marketing plan consistent with provide the best water for Chinese.0.1140.449. Advanced distribution channel management0.0530.1510. The pricing strategy makes most of people fell affordable and acceptable.0.0520.1Weaknesse
46、s1. One product only. 0.08 30.242. High production cost.0.05 10.053. Lack innovation of selling points0.11 20.224. Only one packaged size, difficult to meet the different needs of consumer.0.09 20.185. Increate forms of advertisement.0.03 20.06Total 1.00 2.87SWOT Matrix Analysis SOStrengthWeaknessOpportunityS-O strategyW-O strategyGive full play of Red-canned Wong Lo Kats advantages；
