Marketing Principles Report: Oasis Natural Mineral Water Case Study

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This report presents a comprehensive marketing analysis of Oasis Natural Mineral Water, a Namibian company. It begins with an introduction to the company, its origins, and its product. The report then delves into the market segmentation of consumer markets, examining how Oasis Natural Mineral Water segments its target audience. It explores the company's approach to selecting target market segments, considering factors like geography and consumer preferences. Furthermore, the report identifies the competitive advantages that Oasis Natural Mineral Water leverages to build its market position, such as its commitment to quality, purity, and environmental responsibility. The analysis includes a review of the bottled water market's growth and trends, the company's product variants, and its strategies for distribution and promotion. The report concludes with a summary of key findings and insights into the company's future prospects.
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Marketing Principles 0
Title: Marketing Principles
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Marketing Principles 1
Executive Summary
This report summarizes an introduction to Oasis Natural Mineral water company. An overview
of Market Segmentation of Consumer Markets has been given. A brief description of How Oasis
Natural Mineral Water Selects Target Market Segments has been explained. Identification of
Possible Set Competitive Advantages, that Oasis Natural Mineral Water makes use of in Order to
Build a Position in the Market has been given and this is followed by a conclusion.
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Marketing Principles 2
Contents
Introduction......................................................................................................................................3
Oasis Natural Mineral Water...........................................................................................................3
Oasis Natural Mineral Water- Namibian Company-Market Segmentation of Consumer Markets.3
How Oasis Natural Mineral Water Selects Target Market Segments?............................................4
Identification of Possible Set Competitive Advantages, that Oasis Natural Mineral Water makes
use of in Order to Build a Position in the Market............................................................................5
Conclusion.......................................................................................................................................6
References........................................................................................................................................7
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Marketing Principles 3
Introduction
Omaruru Beverages started its business since 1990. The company is situated in northern
Erongo Mountains, Namibia. This is a family business that is being run by a German couple.
Oasis Natural Mineral water is considered a favorite brand in Namibia. The water has neutral
taste and can be used for different purposes.
Oasis Natural Mineral Water
Oasis Natural Mineral Water- Namibian Company-Market Segmentation of
Consumer Markets
The Namibian Oasis Natural Mineral Water Company started its operation from the
1990s. This is a packaged water drinking product and free from pollution. The water bottle is
made available glass and plastic. The water bottle is readily made available to customers in
nearby retail stores and supermarkets (Guler & Alpaslan, 2011). The company has been
continuously generating awareness about waterborne diseases like food poisoning, typhoid, and
malaria. The Oasis Natural Mineral water is free from all the contaminants. This water bottle is
convenient to use and portable. The water bottle is made available to the customers in 330ml, 1
liter, 500 ml, 2 liter and 5litre bottles (Jeon & Cha, 2013).
The Oasis Natural Mineral water can be used for the preparation of tea, baking, and
coffee. The market segmentation of flavored beverages has been explained as follows-
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Marketing Principles 4
Oasis Orange- This is a flavored drink that has been prepared through Oasis Mineral
water. This is one of the favorite products of customers and comprises of 30 percent less
sugar.
Oasis Lemon-This is lemon drink and does not have any sugar in it but comprises of
sweetener. The Oasis Lemon can be used as a mixer in various drinks like beer (N. M.
Yussuf, 2012).
Oasis Grapefruit-This is fruity and fresh drink and herbed as well. This product has 30
percent less sugar.
Namcola-This product has been receiving great competition from cola brands and it is
less sweet too. This product comprises of 25 percent less sugar (Espinoza & Santamarina,
2010).
Farmdudler- This is an herbal lemon drink, which comprises of 30 percent less sugar. The
International quality and taste institute has awarded this drink with two stars.
The bottled water market is undergoing a phase of rapid growth. At present, the younger
generation prefers to have bottled water with them, due to this being used as a convenient source
of water. The tap water has its own disadvantages because of infectious diseases being spread at
a fast rate. The plastic and glass water bottles have fewer chemicals. The tap water can cause
neurological diseases and several behavioral problems in kids.
How Oasis Natural Mineral Water Selects Target Market Segments?
Bottled water is one of the convenient sources as it is available in packages and customers
can carry them easily (Thach & Olsen, 2006). Oasis Mineral water bottles are available in
departmental and retail stores and this supports the growing development of the bottled water
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Marketing Principles 5
industry. The oasis mineral water bottle company has developed winning strategies which are the
result of key players working in this company. The data which has been provided through press
releases has limited scope to the market information (Aghdaie & Alimardani, 2015). The oasis
mineral water bottle selects target market segments on the basis of geography and type,
packaging and distribution channel (Huh et al., 2014). Based on the type variables, this has been
further differentiated into carbonated water functional water, flavored water, and still water. Still
water is considered as the largest segment of bottled water and this accounts for 42 percent of
demand. This is followed by flavored bottle. The company is continuously doing research on
product innovation with respect to packaging and flavor. This has resulted in increasing the
demand for flavored water. The segment of flavored water has been showing dominance with
relevance to volume and revenue in global market. This is a segment that accounts for a share of
70 percent by 2023 (Dolnicar & Leisch, 2017).
The still water segment will witness rapid growth in the upcoming years. Asia-Pacific
accounts for 30 percent market share and it is considered s largest market with relevance to total
consumption and revenue (Li & Liu, 2013). This is one of the rapidly growing markets for oasis
mineral water. This is supported through large market, untapped market and high demand. All
the big players are continuously making big expansion in markets and which is led by countries
such as China and India. Europe is considered as second largest market which has 25 percent
market share. Different regions such as North and South America, Africa have been showing
significant growth in bottled water market. Some of the leading players which are investing
heavily in research and development activities include Nestle Waters, The Coca Cola Company,
Bisleri Waters and Mountain Valley Company. US bottle market has a high point in year 2015
(Chung & Fabbri, 2019).
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Marketing Principles 6
Identification of Possible Set Competitive Advantages, that Oasis Natural
Mineral Water makes use of in Order to Build a Position in the Market
The Oasis Natural Mineral water has been fragmented with a large number of local
bottlers and private brands. More than 50 percent of global market is covered through national
regional and large players. The competition is reported high mostly in Namibia. This is a
growing market which has demands for hygienic products, market distribution channel and
community acceptance. This will help the oasis water bottle market to grow at a good pace. The
competition has been growing steadily. The internal competition of bottled water is
comparatively high when compared with different providers of water products. At present, the
market is reflecting increase in small players (Bissacot & Oliveira, 2017).
The water bottle industry has been facing external competition from distributors and
adoption of forward and backward integration strategy for the development of bottled water.
Product launch of the oasis natural mineral water is popular among the society as the company
has launched its various variants. Partnerships and agreements act as a competitive advantage to
this company. This helps in capturing market share and effectively competing with other water
bottle players (Thanju, 2012).
Conclusion
Oasis Natural Mineral Water company has conducted extensive research on present and
emerging market trends. The company has identified key drivers and restraints which shape the
company’s future and revenue in long run. Market conditions must be analyzed for
understanding the statistics of the company.
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Marketing Principles 7
References
Aghdaie, M., & Alimardani, M. (2015). Target market selection based on market segment
evaluation: a multiple attribute decision making approach. International Journal Of
Operational Research, 24(3), 262.
Bissacot, T., & Oliveira, S. (2017). Development of management Tool for Water Risk
Assessment (FARH): application in the mineral metalurgical segment in
Brazil. RBRH, 22(0).
Chung, C., & Fabbri, A. (2019). Mineral Occurrence Target Mapping: A General Iterative
Strategy in Prediction Modeling for Mineral Exploration. Natural Resources Research.
Dolnicar, S., & Leisch, F. (2017). Using segment level stability to select target segments in data-
driven market segmentation studies. Marketing Letters, 28(3), 423-436.
Espinoza, D., & Santamarina, J. (2010). Water-CO2-mineral systems: Interfacial tension, contact
angle, and diffusion-Implications to CO2 geological storage. Water Resources
Research, 46(7).
Guler, C., & Alpaslan, M. (2011). Chemical Characterization of Carbonated Natural Mineral
Waters Produced in Turkey: Compliance with European Water Quality
Standards. CLEAN - Soil, Air, Water, 39(11), 947-955.
Huh, Y., Yang, M., Cho, Y., Ahn, K., Lee, Y., & Chung, H. et al. (2014). Antimony Content of
Natural Mineral Water in Korean Market and Migration into Water from Bottle
Material. Journal Of Korean Society On Water Environment, 30(2), 199-205.
Jeon, H., & Cha, J. (2013). An Case Study on the Natural Mineral Water into Vietnam
Market. International Business Review, 17(3), 57.
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Marketing Principles 8
Li, J., & Liu, W. (2013). Selecting a target segment: market structure and new venture entry
strategies. Management Decision, 51(7), 1402-1421.
N. M. Yussuf. (2012). Natural radioactivity in drinking and mineral water in Johor Bahru
(Malaysia). Scientific Research And Essays, 7(9).
Thach, E., & Olsen, J. (2006). Market segment analysis to target young adult wine
drinkers. Agribusiness, 22(3), 307-322.
Thanju, J. (2012). Loosing Competitive Advantage in the Water Resources Sector. Hydro Nepal:
Journal Of Water, Energy And Environment, 10.
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