French branch and the natural water

Running head: MARKET ANALYSIS
Market Analysis
Name of the student
Name of the university
Author note

1MARKET ANALYSIS
Table of Contents
Introduction......................................................................................................................................2
Target market Description...............................................................................................................2
Customer Segment Descriptions......................................................................................................2
Three Potential Segments............................................................................................................2
Health Focus............................................................................................................................3
Sporty.......................................................................................................................................3
Hold the Sugar.........................................................................................................................3
Segment attractiveness analysis.......................................................................................................4
Health Focus................................................................................................................................4
Sporty...........................................................................................................................................4
Hold the Sugar.............................................................................................................................5
Market segments rating....................................................................................................................5
Recommendations............................................................................................................................6
Conclusion.......................................................................................................................................6
References and Bibliography...........................................................................................................7
Appendices......................................................................................................................................8
Appendix 1(Criteria for Segmentation Consumer Market).........................................................8
Appendix 2(Segment Attractiveness Decision Matrix).............................................................11
Appendix 3 (Grade Rubric).......................................................................................................13

2MARKET ANALYSIS
Product: Perrier
Introduction
This report aims to examine the market of Perrier which is one of the natural sparkling
mineral water and is a well-known brand in the global market. It is a French branch and the
natural water is collected at source in Vergèze (Nestle-waters.com, 2020). It is mostly known for
the natural carbonated water provided in a green bottle and has more carbonation that other
competitors in the market. The product is a part of Nestle Waters after it was acquired by Nestle
in the year of 1992 (Nestle-waters.com, 2020).
Target market Description
China has been chosen as the geographical market as it is one of fastest growing
emerging economies in the world. It is a country located in the East of Asia and has the largest
population in the global market with a population size of 1.428 billion. It is one of the largest
country in the world with 9,600,000 square kilometres of area (Indexmundi.com, 2020).
Premium mineral water sales has experienced significant growth in China due to the increase
health awareness and appetite for carbonated drinking water. There has been significant increase
in growth of packaged water segment and has experienced a growth of 14% (Zhang, 2017).
Customer Segment Descriptions
Three Potential Segments
Segmentation is one of the most effective ways of identifying the target market
consumers which helps in improving the sales volume by directing the market efforts towards
that particular consumer segment (Ballestar, Grau-Carles & Sainz, 2018). The three potential
segments of Perrier has been identified as Health focus, Sporty and Hold the Sugar. The
customer segmentation has been used to define these three segments and can be referred to as in
appendix 1. The report has used demographic, psychographic, behavioural and geographic
segmentation to categorise the different target segments.
Population 1,384,688,986 (July 2018 est.)
Age
structure
0-14 years: 17.22% (male 128,270,371 /female 110,120,535)
15-24 years: 12.32% (male 91,443,139 /female 79,181,726)

3MARKET ANALYSIS
25-54 years: 47.84% (male 338,189,015 /female 324,180,103)
55-64 years: 11.35% (male 79,340,391 /female 77,857,806)
65 years and over: 11.27% (male 74,277,631 /female 81,828,269) (2018 est.)
Table: (Indexmundi.com, 2020)
Health Focus
The health focus segments consists of the age groups between 25-54 years and both the
genders has been chosen as the segment. It consist of corporate officials and millennial, high
income groups, graduate, post graduate and doctorates, married/unmarried population. Millennial
belong to this segment and they do not have the time to work out but are willing to live a healthy.
They have the disposable income to afford the products offered by the organisation (Nakano &
Kondo, 2018). These consumers are willing to live a healthy lifestyle and are loyal to their
respective brands. These consumers regularly visit departmental stores, malls and review health
products on line platform. These consumers are influenced by their peers and follow the current
trends in the market. This segment can be considered as consumers that are health conscious but
does not have the time to prepare healthy food and drinks.
Sporty
This segment focuses on the age group between 13-24 years and mainly consist of
college and school students. These male and female consumers are sports enthusiast and willing
to try new products for their functional benefits. They would consumer such products if these
product help them perform better and improve their physical conditions. These consumers are
have detailed knowledge regarding the various products available in the market and focus on
peer reviews to choose their products wisely (Ballestar, Grau-Carles & Sainz, 2018). These
consumers are highly loyal to their brands as they are always training and trying to remain in top
shape for professional sports. However, these consumer segments consist of low, middle and
high income. Furthermore, as majority of the athletes are students, they have low disposable
income and leaving out the few consumers who have professional sponsorship, most of them
have low disposable income.
Hold the Sugar
These consumers belong to the age group of 54 and above which indicates that they are
mostly retired and stay at homes in majority of times. These consumers have high disposable
income but they have specific goals behind purchasing sparkling water. The consumers are not

4MARKET ANALYSIS
health conscious but are bound to try out healthy products due to specific goals. These
consumers have diseases like diabetes and does not have the option to try out sweet beverages.
Therefore, they will use Perrier as a substitute product in the market (Hoegele, Schmidt &
Torgler, 2016). These consumers are married, divorced, separated and widowed. These
consumers will focus on losing their calories but these consumers seldom visit departmental
stores and malls. Furthermore, they are less active on online medium.
Segment attractiveness analysis
Health Focus
Measurable: The segment attractiveness is high and is measurable as the product segment is
highly popular among the consumers as they constantly discuss and aware of new products in the
segment
Substantial: It consists of the largest consumer segment and millennial account for more than
40% of the consumers segment (Indexmundi.com, 2020).
Accessible: This segment is highly accessible as these consumers visit malls, department stores
and retail outlets atleast two to three times a week.
Differentiable: These consumers look for carbonated healthy water belonging to a premium
brands, having health benefits and premium packaging. The quality of the carbonation
differentiates the products from other competitors.
Actionable: This segment is aligned by choices made by their personal and health choices along
with ethical choices. These consumers are concerned about the sustainability of the surrounding
environment and can pay higher prices for sustainable products.
Sporty
Measurable: The segment attractiveness is moderate and is measurable as the product segment
consist of the second largest population in China. The popularity of the product segment is high
due to the health benefits they have for the consumers.
Substantial: It is the second largest consumer segment and mostly consists of generation Z with
around 12% of the consumer segment (Indexmundi.com, 2020).

5MARKET ANALYSIS
Accessible: This segment is highly accessible as these consumers are regular visitors in malls,
retail outlets and departmental stores.
Differentiable: These consumers have a diverse perception of the products offered by the
organisation and search for key ingredients which can improve their performances. These
consumers are also highly conscious about the negative impact of the ingredients.
Actionable: This segment is aligned by income groups and can be divided into low, medium and
high income groups.
Hold the Sugar
Measurable: The segment attractiveness is moderate and still measurable as the products are
relatively popular among the consumers.
Substantial: It consists of the third largest consumer segment and consist of old age men and
women who belong to 11% of the consumers (Indexmundi.com, 2020).
Accessible: This segment is not high accessible as they rarely visit malls, departmental stores
and other retail outlets.
Differentiable: These consumers differentiate the products by looking for substitutes of sugar
contained products.
Actionable: This segment is highly affected by ethical choices where consumers are willing to
pay high prices for sustainable products.
Market segments rating
CRITERIA Health Focus Sporty Hold The Sugar
Measurable 10/10 8/10 5/10
Substantial 10/10 6/10 4/10
Accessibility 10/10 10/10 5/10
Differentiable 10/10 10/10 10/10
Actionable 10/10 10/10 10/10
Total 50/50 44/50 34/50

6MARKET ANALYSIS
Recommendations
The analysis of the three segments have shown that the health focus segment is the most suitable
and profitable for the company. Therefore, in order to promote their products in the market the
organisation needs to promote their sustainable measures along with the health benefits of the
products.
Conclusion
Thus, it can be concluded that from the primary market analysis, it can be stated that
health focus segment which belongs to the age group of 25-54 years. These consumers have
higher disposable income and can spend significant amount on health products as they have
limited to workout.

7MARKET ANALYSIS
References and Bibliography
Ballestar, M. T., Grau-Carles, P., & Sainz, J. (2018). Customer segmentation in e-commerce:
Applications to the cashback business model. Journal of Business Research, 88, 407-414.
Grappi, S., Romani, S., & Bagozzi, R. P. (2018). Reshoring from a demand-side perspective:
Consumer reshoring sentiment and its market effects. Journal of World Business, 53(2),
194-208.
Hoegele, D., Schmidt, S. L., & Torgler, B. (2016). The importance of key celebrity
characteristics for customer segmentation by age and gender: Does beauty matter in
professional football?. Review of Managerial Science, 10(3), 601-627.
Indexmundi.com. (2020). China Demographics Profile 2019. Retrieved 24 January 2020, from
https://www.indexmundi.com/china/demographics_profile.html
Maciejewski, G., Mokrysz, S., & Wróblewski, Ł. (2019). Segmentation of coffee consumers
using sustainable values: Cluster analysis on the polish coffee
market. Sustainability, 11(3), 613.
Nakano, S., & Kondo, F. N. (2018). Customer segmentation with purchase channels and media
touchpoints using single source panel data. Journal of Retailing and Consumer
Services, 41, 142-152.
Nestle-waters.com. (2020). Perrier. Retrieved 24 January 2020, from https://www.nestle-
waters.com/get-to-know-us/through-our-waters/perrier
Roose, G., Geuens, M., & Vermeir, I. (2018). From informational towards transformational
advertising strategies? A content analysis of Belgian food magazine
advertisements. British Food Journal.
Walia, K. (2019). Soundbar Market Share, Dynamics and Segment Analysis Report To 2025.
Zhang, M. (2017). China’s packaged water sales jump as consumer embrace health. Retrieved 24
January 2020, from https://www.scmp.com/business/companies/article/2118272/health-
consciousness-helps-lift-sales-packaged-water-china

8MARKET ANALYSIS

9MARKET ANALYSIS
Appendices
Appendix 1(Criteria for Segmentation Consumer Market)
CONSUMER
MARKET
SEGEMENT
ATION
Health Focus Sporty Hold The Sugar
GEOGRAPHIC China China China
DEMOGRAPHIC Age: 25-54 years
Gender: Male and Female
Consist of corporate officials and
millennial, high income groups,
graduate, post graduate and doctorates,
married/unmarried
Age: 13-24 years
Gender: Male and Female
Consists of students, middle
income groups, early adults and
youths,
School goers, college goers and
sports personnel
Age: above 54 years
Gender: Male and Female
Consists of well settled,
aged men and women,
retirees, high income
groups, married, divorced
and widowed
PYSCHOGRAPHIC Consumers focused on choosing their Consumers looking for products Consumers looking for

10MARKET ANALYSIS
SEGEMENTATION food and drinks based on the healthy
life style, Loyal to their brand, relying
upon brands as health benefits
that will help them in improving
their sporting skills, these
consumers do not seek for healthy
products but are looking for
functional benefits such as energy
boost
products that helps them
fulfilling their weight loss
goals and controlling
diabetes, they are looking
to lose their daily calories
BEHAVIOURAL
SEGEMENTATION
WHAT DOES
CUSTOMER WANT
FROM THE
PRODUCT
OFFERING?
WHAT ARE THE
CUSTOMER’S
SPECIFIC NEEDS?
Health benefits
Looking to live a healthy lifestyle
choices
Functional benefits
Enhancing sports performances
Controlling diseases
Restrictive lifestyle

11MARKET ANALYSIS
WHERE DOES THIS
CUSTOMERS SHOP
FOR THE PRODUCT
OFFERING-
MEDIA,WEBSITES
E.T.C
HOW DO THE
CUSTOMERS MAKE
THEIR BUYING
DECISIONS?
Retail outlets and departmental stores
Peer groups and online reviews , value
for money
Retail outlets and departmental
stores
Peer groups, mentors, online
reviews and sports articles, value
for money
Retail outlets and
departmental stores
Peer groups, outlet
employees, value for
money
SEGEMENT
ATTRACTIVENESS
Primary Secondary tertiary

12MARKET ANALYSIS
Appendix 2(Segment Attractiveness Decision Matrix)
Health Focus Sporty Hold The Sugar
Measurable Attractiveness of the segment is
measurable as healthy carbonated
sparking water is popular among
the segment
Attractiveness of this segment
is measurable as they
purchase the product due to
sports benefits
Attractiveness of this sector can be
measured as they purchase the
product due to the control their
diseases.
Substantial China consists of large number of
Millennial population and is the
largest segment
This segment consists of the
second largest population in
China
This is the third largest segment in
China but significantly smaller
compared to the others
Accessible The segment is accessible as they
can be found in departmental
stores, malls and retail outlets at
least two to three times a week
This segment are accessible at
schools, clubs, youth centres,
malls and retail outlets
This segment are not easily
accessible, stays at home in
majority of the times

13MARKET ANALYSIS
Differentiable This consumers look for
carbonated healthy water, premium
brands, health benefits
Diverse perception, looking
for ingredients, components
and adverse effects
They look for substitutes of sugar
content drinks
Actionable This segment is aligned by choices
made by their personal and health
choices along with ethical choices
. This segment is aligned by
the different income groups
and consists of low, medium
and high income groups
This segment is highly affected by
ethical choices

14MARKET ANALYSIS
Appendix 3 (Grade Rubric)
Expectations Approaches Meets Exceeds %
- 69% 70-79% 80-100% 0-100
Ability to conduct relevant
research to support
analysis and that is consistent
with the specific context.
Insufficient research; there is
a significant lack of
information from relevant
credible sources. Descriptions
and/or arguments are based
largely on assumptions.
Rudimentary research; there
is some information provided
from relevant credible
sources. However, some
sources may lack direct
relevance and/or lack
credibility. There may be some
notable gaps in providing
specific information and/or in
information search.
Comprehensive research; highly
relevant information from a
variety of credible sources has
been provided and used
insightfully.
Ability to provide in-depth
description of distinct
segments. Segment
descriptions significantly
enhance ability to empathize
with and understand the
group.
High-level, broad
descriptions; generic profiles
with few details
Good level of detail overall;
however, some segment
profiles are somewhat broad
and generic. May be lacking
details about some
segmentation elements.
Comprehensive profiles; rich
detail, providing readily
distinguishable customer segments
that can be easily imagined.
Demographic, psychographic and
behavioral profiles are well-
developed for each potential
segment.

15MARKET ANALYSIS
Expectations Approaches Meets Exceeds %
Ability to apply or modify
relevant concepts to support
analysis/ recommendations;
demonstrated understand of
and ability to apply the
assigned frameworks.
Some uncertainty in
application of concepts and
frameworks; significant steps
or elements in the frameworks
have been missed or
misapplied.
Applies concepts and
frameworks correctly and as
expected for the most part.
Steps or elements in the
frameworks have been
completed correctly for the
most part.
Clearly and comprehensively
applies concepts and frameworks.
Analysis is professional and
polished.
Ability to present solid
ideas/arguments and to make
logical and justified
recommendations based on
insights from analysis.
Somewhat incoherent and/or
inconsistent logic; conclusions
and/or arguments may be
lacking justification and/or
connection to analysis or
frameworks.
For the most part, logic is
coherent and consistent;
conclusions and/or arguments
are usually supported by
sufficient evidence and drawn
from analysis. However,
important insight may be
missing at times.
Logic is coherent and consistent.
Conclusions and/or arguments are
well-supported with evidence,
examples, and insight. All
recommendations are clearly and
insightfully justified.
Ability to communicate
professionally; e.g., coherent
introduction, good transitions
and flow; correct use of
grammar, punctuation,
spelling, and English writing
skills; appropriate APA
Writing is a negative
distraction from the content.
The flow of the paper is often
unclear and/or incoherent;
there are many spelling,
grammar, capitalization
and/or punctuation errors;
Reasonably clear and
coherent flow; there are some
spelling, grammar,
capitalization and/or
punctuation errors, but they
do not detract significantly
from the content; for the most
Composition is professional.
Paper is clear and coherent
throughout; spelling, grammar,
capitalization and/or punctuation
errors are minimal; APA
formatting and source citations
have been handled correctly, with

16MARKET ANALYSIS
Expectations Approaches Meets Exceeds %
formatting and source
citation; effective use of
appendices.
formatting is not consistent
with APA requirements;
sources have not been cited
and/or there are multiple
formatting issues with
citations; important
appendices are missing and/or
existing appendices are not
introduced in the paper,
and/or appendices are not
directly relevant to the paper.
part APA formatting and
source citations have been
handled correctly; for the
most part, appendices are
clear and used appropriately.
very few, if any errors; appendices
are clear and used correctly.