Group 5 – Brand Management “A NATURAL BOND” Gregorio Guerzoni BEYOND WATER, TOWARDS PEOPLE Antonia Nell Luca Famularo Rachele Raggi Elena Moratelli First, a bit of history of Ferrarelle Ferrarelle was founded in 1893 by Doctor Giuseppe De Ponte in Riardo It is an effervescent mineral water with 100% certified natural bubbles, which contains important minerals thanks to its slow path through volcanic and carbonate rocks in the Riardo (CE) area Ferrarelle is now owner also of Santagata, Natia, Boario, Fonte Essenziale, and Vitasnella Ferrarelle built distinct positioning in a more premium category, and it is in the 5 top brands in Italy (2,5% market share), fragmented market → 250 water brands 7 11 16.5 Million Euros 205 Million Euros Product Certifications Countries of Export EBITDA Net Turnover Identity Mission Use r-PET bottles and raise awareness amongst consumers Color Red + Green Vision Become 100% sustainable and promote a -1 impact world Unique water, lively and healthy Product Naturally sparkling mineral water Brand Circle Logo Concept Name Ferrarelle Neither still, nor sparkling, but Ferrarelle Brand Concept No water is like Ferrarelle: a miracle of nature that combines taste and wellbeing 15 km underground path 30 years long jurney Ferrarelle is not regular mineral water, it's extravagant and unique. It’s tastier than other waters and it is the ideal one for your well-being It packs both flavor and well-being in a bottle of water thanks to its effervescence and minerals combination It’s the only water coming from a volcano, its effervescence is delicate and gentle, as not to disturb the palate, in perfect balance with its dissolved minerals With its 1500 mg/l of bicarbonate, Ferrarelle is perfect to accompany every meal and it helps the body in the digestion process. It contains 48 mg/l of potassium, which contributes to the well-being of the muscular and nervous systems, it contains 84mg/l of silica, a mineral that strengthens the joints and makes the skin more elastic, and 400 mg/l of calcium, essential for teeth and bones «Be different, be healthy, buy Ferrarelle at your closest grocery store » Target Group Consumption at home «Conquer all the Italian families» Consumption outside of home Adults: Adaptive consumers satisfaction of physiological and convenience needs Health-conscious people integrate mineral salts and vitamins necessary in the diet (18-34; 65+) B2C Market Sports people they use water to make up a balanced diet (18-34; 35-64) Sophisticated people naturalness and composition that characterizes them. Also, the consumption of a structured product (18-34; 35-64) Parents attention to the format, suitable for their children (35-64) Children (0-9 years of age) reachable with the new mini formats B2B Market Premium Ho.Re.Ca Price/Quality, Compositionm, Sustainability, Health (X) Positioning Map -1,5 1 Evian 0,5 Sant Anna 0 -1 -0,5 0 0,5 1 1,5 2 Premium Positioning Improvement in P/Q - Ratio -0,5 -1 Coop -1,5 -2 Packaging and Advertising (Y) and further Product-Related attributes recommended Value Chain Value Proposition Construction Sources of Value • High attention towards • • environment Market Shares: 2,5% Italian character & strong Nowadays present in more than 40 bond to gastronomic countries tradition • Unique water: Composition & Taste • Distribution natural resources & the • Strong Brand Awareness & Communicate Value • Packaging: Recognizable/ red label, colours of Italian flag • Advertisement: Well-aligned strategy towards broad “neither sparkling nor still“ – clear target range (through differentiation from other brands different channels) Premium Price Segment Value Delivery “The water of the Italians” WHAT’S INSIDE? Red and green colors 50% R-PET 4 different sizes Glass 5 different sizes Maxima 4 different formats Easy to carry packaging Elegant and modern design Ferrarelle delivery service Different packaging for different targets BRAND LADDER Main certifications are: • • • National Sanitation Foundation (NSF) British Retail Consortium (BRC) International Food Standard (IFS Emotional Benefits International Organization for Standardization (ISO) Product Benefits Special Occasions Consumer Benefits • Naturally effervescent: they present a quantity of carbon dioxide (CO2) in its natural • Product Attributes Armonic relationship with the environment • Ability to provide differentiating organoleptic properties Water Treatment status, which is not added in any way during the production process Source Bottling PRODUCT CIRCLE Research: Every week there is an analytical check of the water in the subsoil. Constant monitoring of the level of mineral salts present in the soil by sampling some portions of the same. 8,5 Schematic section of SE groundwater deep circulation and RMW recharge and minearlization. Stratigraphical data are acquired from Capelli et al., 1999 milions euros spent yearly on R&D Package Design: Simple and Aesthetically pleasing. The green color reminds of nature and sparklingness. The color red brings high attention to the label Brand Development: Continuos search of new market segments and entry in foreign markets. Expansion in Functional Design: Italy always growing. Turnover = 204 million Various types of water bottle formats are euros (+3.3% of liters of water sold). Ebitda available, ranging from 250ml to 1.5lt. = 16.1 million (+5.5 million euro) Portability is also very important to Ferrarelle BRAND NODES Monopoly Global Awareness Special Occasions like restaurants Italy Every-Day use Sharing Vending Machines Hospitals Schools Public Places Family BRAND EXTENSION LINE EXTENSION CATEGORY BRAND EXTENSIONS • Maxima is a new version of the Ferrarelle Masseria delle Sorgenti is Ferrarelle Group's organic Group's extremely sparkling water farm located in Parco Sorgenti Ferrarelle, in Riardo, bottle. and it is dedicates on the production of healthy and • The company recently launched this new type of water through an advertising tv campaign. organic products (Evo Oil, Pasta and Honey) PARTNERSHIP & SPONSORSHIP Ferrarelle has always been committed to supporting important Italian art institutions such as La Scala theatre but also student education through its partnership with Bologna Business School CONCLUSION Unique concept Product in an almost separate water category Addressing certain pain points with special & unique composition in minerals >>At the same time standing out with great taste and suitability on any occasion/situation<< Beneficial for everyone Targeting Consumers on both B2B and B2C Level OoHome and Home Consumption Catering a Premium Segment Coming from … Strong Value: “The Water of Italians” Strong level of brand awareness through several brand nodes coming down in a great network Different advertising funnels: Extension of the brand as well as partner- & sponsorship THANKS FOR YOUR ATTENTION