Capturing Global Insights Translating Worldwide & Localized Consumer Needs: Bottled Water

Case Study #1, August 2011

n1226 Global Respondents n207 Canadian Respondents French Speaking Only

n150 French Respondents

n308 German Respondents n406 American Respondents n301 English Speaking n105 Spanish Speaking

n207 Mexican Respondents

Age: 18-65 Purchase and personally consume bottled water in past three months

Method: Online qualitative interviews 11 minute interview, Benefit laddering exercise 4 3 Give me a story about How does Your Brand Your Brand make you feel 2 What are the benefits of Your Brand 1 Why do you drink Your Brand

Total Sample n1226 What do you need to know in 30 seconds …

• The major benefit of bottled water is refreshment. Refreshment has a dual meaning. • Physical refreshment – hydration from physical exertion or on a hot day • Satisfaction from feeling refreshed – relaxation, refocus on the day

• The most desired flavor is “pure,” or clean • Lack of flavor – no taste of minerals, no aftertaste – completely neutral taste • This indicates purity and cleanliness – which is the ultimate driver of purchasing bottled water over tap

• Bottled water is healthy – it helps hydration, digestion and is healthier than the world’s most consumed beverage, soda

• Price is a concern, although freely available, people look for economical bottled water and look to purchase in bulk in certain shopping situations

• Brands matter, but they are driven “locally.” Brands at their core are defined by what makes sense to a country’s sensibilities.

Mexico Sample n207

Mexico Sample n207 Security. Water needs to be safe.

No todos tienen la oportunidad de consumir buena agua. Aquí. Y gracias a agua spring si … porqué se que al tomas esta agua no corro el riesgo de contraer ninguna enfermedad

Conclusion Implication • Tap water can taste like chlorine Clean taste is very important • When water doesn’t taste like tap water in Mexico – it seems safe • Bottled water gives consumers a feeling of security

• Brands that are well established have proven their secure Brands can support security • When a brand is backed by a large conglomerate, there is money and distribution, which also establishes trust

Mexico Sample n207 Security. Water needs to be safe.

Not everyone has the opportunity to consume good water here. And with spring water I feel safe … Because this water doesn’t run the risk of contracting any disease

Mexico Sample n207 After security, brands can establish themselves

Siento una sensación de frescura y salud, Bonafont me hace sentir saludable y fresca. Al no consumir sodio mi cuerpo es más sano y libre de impurezas eso para mí es ser saludable.

Conclusion Implication • Healthy, good for me and hydrating • It’s also about weight control and good for the kidneys Bottled water is universal worldwide, • There is a unique focus on low sodium in Mexico but low sodium isn’t • So, since it’s universal – brands need to establish themselves as differentiating

• Advertising is focused on young beautiful fit women Bonafont has connected itself to • Their logo reinforces this idea – and consumers notice healthy with the benefit being beauty • Bonafont consumption = I will become healthy and beautiful

Mexico Sample n207 Security. Water needs to be safe.

I feel a fresh sensation and healthy when I drink Bonafont. I feel like I am being healthy because I am helping my body by drinking a low sodium drink … and it will help get rid of the toxins in my body, that to me is being healthy

Mexico Sample n207; US Spanish Sample n105 Spanish distinctions – it’s the country

Concerns lessen … Security Purity Large corporation Sodium content

Stronger focus on great taste

Germany Sample n308

Germany Sample n308 Local sourcing, carbonation & prescribed healthy

Lots of brands, and if you can see the stream (or know it’s location), you’re likely to drink that brand. 1

Carbonation happens, not in all waters – but it happens in Germany. The carbonation is ‘crisp’ yet not ‘overfilling.’ Carbonation combined with 2 clear, natural flavor provides the best taste

Hydration is physician recommended. Germans believe they have very specific needs in their required consumption amounts and mineral 3 content, so they look to be exacting as they try to meet those levels

Germany Sample n308 Branding is varied and local sourcing is strong

Brands Preferred (Respondent Brand Mentions) 0% 5% 10% 15% 20% 25% 30% 35%

Single Mention Brands 30% Volvic 12% Gerolsteiner 8% Vittel 7% Saskia 3% Quellbrunn 3% Aldi 2% Apolinaris 2% Bonaqua 2% Evian 2% Selters 2% Aqua Culinaris 1% Aquarell 1% Unlisted brands include … Bismark 1% K-Classic 1% Bad Brückenauer, Baruther Quelle, Berg Quelle, Christinen, Merkur 1% Extaler, Frankenbrunnen, Freeway, Hassia, Lichtenauer, Vilsa 1% Vitalitasia 1% Perrier, Peterstaler, Rhönsprudel, Rosbacher, Sinzinger, Vio Adelholzner 1% Gut & Günstig 1% Nestle 1% Thüringer Waldquell 1% Altmühltaler 1% Aquintus 1%

Germany Sample n308 Branding is varied and local sourcing is strong

Brands Preferred (Respondent Brand Mentions) 0% 5% 10% 15% 20% 25% 30% 35%

Single Mention Brands 30% Volvic 12% Gerolsteiner 8% Vittel 7% Saskia 3% Quellbrunn 3% Aldi 2% Apolinaris 2% Bonaqua 2% Evian 2% Selters 2% Schmeckt. Preis-Leistungsverhältnis. kommt aus der Region. Aqua Culinaris 1% Aquarell 1% kenne die Besitzer. Lecker. Heimatverbunden. Gut Bismark 1% Erfrischend… trinke es schon seit Jahren. Es schmeckt K-Classic 1% Merkur 1% einfach Vilsa 1% Vitalitasia 1% Adelholzner 1% Gut & Günstig 1% Nestle 1% Thüringer Waldquell 1% Altmühltaler 1% Aquintus 1%

French Sample n105

French Sample n105 Where water branding was born …

FROM WIKIPEDIA about Evian…

In 1789, during a walk, the Marquis of Lessert drank water from the Sainte Catherine spring on the land of a Mr. Cachat. The marquis, who was allegedly suffering from kidney and liver problems, drank regularly of the water while he walked, and claimed that his health improved.

French Sample n105 Where water branding was born …

Brands Preferred (Respondent Brand Mentions) 0% 5% 10% 15% 20% 25%

Evian 15% World famous … Local source 15% Contrex 9% Volvic 9% Vittel 6% 1774 - calcium Badoit 5% Volcano Store brand 4% 1860s Perrier 4% Salvetat 3% Hépar 3% From spa in roman times Mont Roucou 2% … Aquarelle 1% Carola 1% Courmayeur 1% San Pellegrino 1%

French Sample n105 Consumers also recount long histories with brands…

Brands Preferred (Respondent Brand Mentions) 0% 5% 10% 15% 20% 25%

Evian 15% Local source 15% Contrex 9% Volvic 9% Vittel 6% Badoit 5% Store brand 4% Perrier 4% C'est l'eau que je bois depuis mon enfance avant d'etre en Salvetat 3% Hépar 3% bouteille plastique elle etait vendue en bouteille de verre Mont Roucou 2% C'est vraiment une eau adapt tout le monde Aquarelle 1% Carola 1% Courmayeur 1% San Pellegrino 1%

French Sample n105 Consumers also recount long histories with brands

Brands Preferred (Respondent Brand Mentions) 0% 5% 10% 15% 20% 25%

Evian 15% Local source 15% Contrex 9% Volvic 9% Vittel 6% Badoit 5% Store brand 4% Perrier 4% Salvetat 3% It's water I drank from my childhood before it was bottled in Hépar 3% plastic it was sold in glass bottles, it is really a water suited Mont Roucou 2% everyone Aquarelle 1% Carola 1% Courmayeur 1% San Pellegrino 1%

French Sample n105 …and where that might be changing

Brands and their traditions matter, but new players changed the model …

French Sample n105 Using different sources, using same brand…

Brands Preferred (Respondent Brand Mentions) 0% 5% 10% 15% 20% 25% Cristaline 19% Evian 15% Local source 15% Contrex 9% Volvic 9% Vittel 6% Badoit 5% Store brand 4% Perrier 4% Salvetat 3% Hépar 3% Mont Roucou 2% Aquarelle 1% Carola 1% Courmayeur 1% San Pellegrino 1%

French Sample n105; French Canadian Sample n207 …Canadians still care about local sourcing.

Sparkling is absent …

The language may not be all they share – localized, brand sourcing matters Pure Canadian Springs! Glacial/Snowmelt Distinct Natural Northern Sources

United States English n301

United States English n301 Americans brands have definitive meanings.

Brands Preferred (Respondent Brand Mentions) 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% Aquafina 17% 14% Dasani 13% 8% Poland Spring 8% 6% Arrowhead 3% 3% Zephyr Hills 3% 3% Fiji 2% 2% Smartwater 2% 1% Crystal Geyser 1% 1% Niagra 1% 1%

United States English n301 Aquafina – nothing tastes better.

Brands Preferred (Respondent Brand Mentions) 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% Aquafina 17% 14% Dasani 13% 8% Poland Spring 8% 6% Arrowhead 3% 3% Zephyr Hills 3% I love Aquafina and when I drink 3% Fiji 2% those other brands I am always 2% comparing them to Aquafina and Smartwater 2% there is no comparison 1% Crystal Geyser 1% 1% Niagra 1% 1%

United States English n301 Dasani is well distributed, so well known.

Brands Preferred (Respondent Brand Mentions) 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% Aquafina 17% 14% Dasani 13% 8% Poland Spring 8% 6% Arrowhead 3% 3% Zephyr Hills 3% 3% Dasani water bottles are available Fiji 2% 2% pretty much anywhere Smartwater 2% 1% Crystal Geyser 1% 1% Niagra 1% 1%

United States English n301 Nestle is seen to be affordable and well

Brands Preferred (Respondent Brand Mentions) 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% Aquafina 17% 14% Dasani 13% 8% Poland Spring 8% 6% Arrowhead 3% 3% Zephyr Hills 3% Water in general is better for you 3% Fiji 2% than any other bottled beverage you 2% can buy. Nestle Pure Life most often Smartwater 2% has the lowest price 1% Crystal Geyser 1% 1% Niagra 1% 1%

United States English n301 All water is good for working out Poland Springs excels

Brands Preferred (Respondent Brand Mentions) 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% Aquafina 17% 14% Dasani 13% 8% Poland Spring 8% 6% Arrowhead 3% 3% Zephyr Hills 3% 3% I drink Poland spring when I go to Fiji 2% work or to the gym to workout. 2% Smartwater 2% 1% Crystal Geyser 1% 1% Niagra 1% 1%

What can you do with this data…

• A brand positioning that is not focused on refreshment, and more specifically pure refreshment will not be successful

• Across all brands, as it relates to distribution and channel management, understand shopping behavior of channels and level bulk purchase options for increased consumer consumption ("stock ups") and savings.

• For manufacturers in the US, brand plays an important role, both in building credibility, but also building cache - celebrity sponsorships, package innovation and product innovation will cement differentiation of branding in the market place.

• For manufacturers in Mexico, safety communications will be most beneficial to brands, since water security is paramount. Build relationships with water boards, consumer safety committees and invest in a water purification standard.

What can you do with this data …

• In Europe, tradition can hold well established brands. For upstarts, or large manufacturers entering the marketplace, invest in localized sourcing and bottling.

• Additionally, in Europe, as it relates to distribution and channel management - establish appropriate bottle size, bulk sizes and establish a strong understanding of both rural and city dwelling consumers.

• The last: Listen to your customers, find their stories and find innovation through their behaviors and their attitudes

Method: Virtually moderated by Socrates

Open ended topics presented by software • Respondents type answers into chat interface • Each respondent on average received 1 probe per topic

Respondents shared personal stories • Stories were about brands and personal stories • Emotional benefits were explored throughout countries

Linguistic analysis to identify, define key themes – performed by software and analysts • Cultural distinctions were explored across countries • Language distinctions were made across countries speaking the same language

Interview length varied by country

Avg. Interview Length (minutes)

US Spanish (n105) 15

Mexico (n207) 13

Canada French (n155) 11

France (n150) 9 Interview Length

Germany (n308) 8

United States (n301) 8

0 5 10 15 20

Spanish speakers are the most verbose

Avg. Words Typed 34 Mexico (n207) 136 29 US Spanish (n105) 115 26 United States (n301) 104 Word Count Per Topic 25 Canada French (n155) 100 Word Count Total 17 Interview France (n150) 69 16 Germany (n308) 64

0 50 100 150

Words typed per minute favors North America

Avg. Words Per Minute

United States (n301) 12.68

Mexico (n207) 10.44

Canada French (n155) 9.05

Germany (n308) 7.79 Words Per Minute

France (n150) 7.57

US Spanish (n105) 7.54

0 5 10 15

We all have our unique peccadilloes.

• In Germany, a single word can capture several ideas, in fact German has some of the longest compound words in the world, which can lead to lower “word counts” • For example … this is a word  Rindfleischetikettierungsüberwachungsaufgabenübertragungsgesetz

• In Europe, professional interviewing is essential – no need to build a relationship with the respondent, not casual – be direct, be specific about what you want to learn – don’t be overly personal • In Germany, there could be some concerns with follow ups as “interrogations” … again, be direct, do not over personalize probing – instead focus on the facts with their experiences • In France, respondents can be impatient and get irritated quickly, be brief, be professional, be direct.

• Spanish speakers require fewer topics, because they are open, respond well to sharing and engage in a very personal and conversational dialogue

• Americans need probes, otherwise they will operate in a lazy undisciplined fashion. They don’t like to type if they don’t have to.

Case Study #1, August 2011