Marketing Management.

Critical Analysis of current practices in TY NANT and

Value addition evaluation.
Date: 14 May - 2013

Table of Contents
EXECUTIVE SUMMARY:....................................................................................... 3
MARKETING DEFINED:....................................................................................... 3
MARKETING PROCESS........................................................................................ 4
Plans Oriented for Marketing Demand Strategy:..............................................4

Concept of production............................................................................... 5

Concept of product:...................................................................................5

Concept of selling:.................................................................................... 5

Concept of marketing................................................................................5

Concept of Societal Marketing...................................................................5

MARKETING STRATEGY:..................................................................................... 6
1.

Market Segmentation...................................................................................6

2.

Market Targeting.......................................................................................... 7

3.

Market Positioning and Differentiation.........................................................7

MARKETING MIX:................................................................................................ 7
Product............................................................................................................... 8
Price................................................................................................................... 9
Place................................................................................................................... 9
Promotion........................................................................................................... 9
COMPETITOR ANALYSIS:..................................................................................10
COMPETITIVE STRATEGY:................................................................................11
Porters Generic Model for Competitive Advantage:.........................................12
Competitive advantage strategy pursued at TY NANT (In Porters view):.........12
Competitive advantage strategy pursued at TY Nant (in Ansoffs view):..........13
Ansoff product market growth matrix:..............................................................13

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Critical Analysis of current practices in TY NANT and
Value addition evaluation.
Date: 14 May - 2013
TECHNOLOGICAL DEVELOPMENTS IN THE FIELD OF MARKETING:............14
1.

Social Media:.............................................................................................. 14

2.

Interest Based advertising (Behavioural Targeting):...................................14

3.

Mobile advertising...................................................................................... 15

4.

Marketing MIX Modelling............................................................................ 15

CONCLUSION:.................................................................................................... 15
Recommendations:.......................................................................................... 16
Bibliography...................................................................................................... 16

EXECUTIVE SUMMARY:
Outstanding

marketers

and

organizations

share

common

goal;

consumers must be considered as the heart of marketing. Today,

Marketing is all about creating and maintaining consumer value and
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Critical Analysis of current practices in TY NANT and
Value addition evaluation.
Date: 14 May - 2013
exchange of profitable relationships. The inception complies various
concepts and understandings such consumer wants and needs, evaluating
market targets, creating value proposition, and profitable exchanges.
Together, these building variables will serve market share, customer and
equity and profits to organizations. The purpose of this report is to
execute

critical

analysis

on

the

key

marketing

activities

and

contributions of the marketing department to TY Nant1, one of the

leading suppliers in the bottled water industry. In addition, the scope of
this report is to review TY Nants marketing operations to date and to
develop the business for the future. Further to the evaluation, this report
will summarize future developments in the field of marketing through
technology.

MARKETING DEFINED:
Unlike

many business

functions,

marketing

deals

with

customers.

Attracting new customers by delivering superior value and enhancing

current customer satisfaction are two of the main folds of marketing. Forprofit and not for profit organizations such as Google and museums
respectively, aim in implementing sound marketing to attain critical
success in the organization. Kotler and Armstrong (2012) further elaborate
marketing to be new sense of satisfying customers. In support, Burnett
(2008) re-instated that the aim of marketing is to make selling
unnecessary and that advertising and selling are only a sector of the
marketing mix. While terming Marketing mix, it is a set of approaches that
function together to enhance customer demand and satisfaction. On a
comprehensive note, marketing is to be understood as the managerial and
social process by which both organizations and individuals obtain their
objective by developing and exchanging value. In a narrow context,
marketing is empirical involved in profit development on a value added
1

http://www.tynant.com/main.aspx?pID=2-0&nID=2

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Marketing Management.
Critical Analysis of current practices in TY NANT and
Value addition evaluation.
Date: 14 May - 2013
process.

Thus,

defining

marketing

as

process

through

which

organizations create value and enhance customer satisfaction in order to

substantiate demand for the organization.

MARKETING PROCESS:
Investigate customer
demand and marketplace

Initialize plans for demand

oriented marketing
strategy

Construct profitable
relationships and customer
delight

Acquire customer
value and customer
equity to enhance
profitability.

Implement an
integrative
marketing
strategy to deliver
superior value.

Adopted from Kotler and Armstrong (2012)

The figure above represents a simple five step model of marketing

process. Observably, the first four steps discuss about creating customer
value and strong customer relationships while the last process solely
discusses about capturing customer value in return. While generalising
each concept could get complex and comprehensive, this report will scope
its parameters to marketing management orientation which is an integral
element to plan and synthesize customer demand.

Plans

Oriented

for

Marketing

Demand

Strategy:

Assuming that a major derivation of consumer and marketplace has been

produced, marketing management evaluates customer oriented marketing
strategy. Organizations first must target its customers by market
segmentation where market is divided into segments of clients, and
selecting which segments it should further pursue on, which is also known
as market targeting. Organizations must also define systematic approach
in differentiating and positioning itself in the market (Avery, et al., 2012).
Along with this, organizations must look into choosing a value proposition.

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Critical Analysis of current practices in TY NANT and
Value addition evaluation.
Date: 14 May - 2013
Here, the organizations decide the approach it should undertake to
deliver prospective customer satisfaction and value proposition. In order
to build this, Marketing must design stratigies that will build potential
relationships with its targeted clients and customers. There are five
essentials concepts under which marketing management orientation is
developed (Kotler & Armstrong, 2012):

Concept of production: Often a reason for Marketing

Myopia2 (Edmans, 2009), this concept constitutes the idea
that consumers will favour products that are highly available
and affordable.

Concept of product: This concept constitutes the idea of

continuous product development, where the organization
targets those consumers that focus on products that offer the
most in performance, innovation, features and quality.

Concept of selling: This concept generalizes the idea that

consumers will not favour those products until they are
generated from a large scale and promotion effort.

Concept of marketing: Often considered as a philosophy,

marketing

concept

infers

itself

to

consider

marketing

strategies such as targeting, differentiating and positioning.

Concept of Societal Marketing: Decisions and ideas

oriented towards consumers requirements, consumers long
run interests and societys long run interests.

Assuming that a detailed summary has been provided, this report will now
gaze upon the marketing management orientation TY NANT pursues.
2

Often a mistake made by sellers. Sellers pay more attention to specific products
contributed than to its benefits and/ or experiences offered.

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Marketing Management.
Critical Analysis of current practices in TY NANT and
Value addition evaluation.
Date: 14 May - 2013

Marketing Management Concept pursued in TY NANT:

Report derived from:
TY NANT, 2010
http://www.tynant.com/USERFILES/FILE/BOTTLED%20WATER%20REPORT%20-%20TY
%20NANT%20STILL%20-%20ENGLISH.PDF.

TY NANT produces substantially distilled water for its production, following

the marketing concept of marketing management orientation. The report
states that the production of the bottled water in TY NANT meticulously
follows four consecutive declarations:
1.

Statement of Quality: Quality standards of bottled water.

Maximum Containment Level (MCL): Maximum

2.

Containment level allowed in public drinking water.

Primary Drinking Water Standards (PWDS ):

3.

providing maximum feasible protection to public health.

4.

Public health goal (PHG): Level of contaminant procures

no known threat to health and safety.

Clearly, TY NANT is following the marketing concept, where the

organization

focuses

on

customer

satisfaction

and

value

to

gain

profitability in return. In contrast to the selling concept, TY NANT considers

an outside perspective, where the organization focuses on satisfying the
customer needs as integral approach to attaining profits (Dotzel, et al.,
2013).

MARKETING STRATEGY:
Assuming that a distinct concept have been provided above, the next step
for any organization is to create a marketing logic that implements the
anticipated customer value to achieve profitable relationships. For this,
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Marketing Management.
Critical Analysis of current practices in TY NANT and
Value addition evaluation.
Date: 14 May - 2013
Organizations

first decide which consumers it will

serve (Market

segmentation and Market targeting) and how will they serve (Market
differentiation and Market positioning). In short, organizations must divide
the total market in best segments and design a strategy to implement a
profitable relationship (Kotler & Armstrong, 2012).
1. Market Segmentation: The process of breaking the total
market into distinct groups of consumers who possess individualistic
needs, personalities and individuals who may require distinct
products and/or marketing programs. TY Nant segments its market
to distinct consumers. Its product are drone to satisfy high end
profiles and luxury oriented consumers. Furthermore, its distributors
are classified into the luxury groups, thereby making TY Nants
market segmentation observably.
2. Market Targeting: Involves evaluating distinct demand in each
market segments and making a narrow a selection criteria to enter.
A company with limited resources may choose particular segments
to enhance profit relationships. TY Nant targets its market in terms
of social and economic lifestyle. TY Nant targets its high end profiles
by presenting its aesthetic appeal to attract the segmented
consumers.
3. Market Positioning and Differentiation : Positioning is the
process where the organization positions its product in a place
where it produces an aesthetic, desirable and distinguished appeal
to

the

targeted

consumers

from

its

competitors

whereas

differentiation is the process where the organization decides to

value add its product making available to consumers for affordable
cost and high quality when compared with its competitors. TY Nant
positions itself as a luxury product. Furthermore, TY Nants product

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Marketing Management.
Critical Analysis of current practices in TY NANT and
Value addition evaluation.
Date: 14 May - 2013
delivers a declaration of choice for consumers who re health
conscious and Halo minded. TY Nant has also positioned itself in the
Niche Markets Such as Luxury hotel and restaurants (Ty Nant, 2013).
In addition, TY Nant has now entered into the retail sectors thereby
creating further value into their product, thereby differentiating their
market (WalesOnline 2012)

MARKETING MIX:
Assuming that an incentive marketing strategy has been produced, TY
NANT must further plan the niceties of the marketing mix. Marketing mix
is often referred as tools of marketing that mechanizes the marketing
strategy. More commonly, marketing mix can be further understood in the
traditional four Ps, explained in the figure below:
Adopted from (Kotler & Armstrong, 2012)

PRODUCT:

PRICE:

Quality

List Price

Variety
Design
Brand Name
PROMOTIO
N:

TARGET
Consumer
s

Discounts

Proposed
POSITIONI
NG

Payment
Period

Allowances

PLACE:
Channels

Personal
Selling

Locations
Inventory

Public
Relations

Logistics

Advertising

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Marketing Management.
Critical Analysis of current practices in TY NANT and
Value addition evaluation.
Date: 14 May - 2013

Product: Combination of the goods and/ or services offered by the

organization to the target market. TY NANT produces bottled water. The
Following table will integrate the summary of its products offered. The
Cross mark on each product rows indicate the products offered to the
targeted market. Being tagged as ISO 9001, TY Nant pays utmost
attention towards the quality of its products. TY Nants unique excellence
in design of its products makes it synonymous to luxury.
Products

30 ml

250 ml

330 ml

500 ml

750 ml

1 liter

1.5 ltr

Ty Nant Red
still or
carbonated

TY Nant Blue
still or
carbonated.

--

TY Nant PET

TY Nant
Replenish

Price: the amount of money customers pay to purchase the product.

Looking into the Walesonline (2011) report, TY NANT has recently
enetered into the retail to target comprehensive consumer targets. The
Idea behind this can be assumed as to reach common consumers,
influencing the marketing concept once again. However, observations on

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Marketing Management.
Critical Analysis of current practices in TY NANT and
Value addition evaluation.
Date: 14 May - 2013
its corporate profile reveal that previously TY NANT segmented its market
to high profile consumers, thereby assuming a above average pricing
range.

Place: As mentioned earlier, TY NANT had its distribution ranged at

featured outlets, however wales online (2011) restates that TY NANT now
foucuses its distribution to retail outlets as well. Few of the outlets in UK
who distribute TY NANT water are TESCO (Wales only), Waitrose,
Sainsbury,

Ocado,

Harvey

NIcols,

and

Harrods.

Furthermore,

the

distribution level has a worldwide parameter, distributing to countries

such as US, Belgium, Thailand, Canada, Qatar, Kuwait etc.

Promotion: Any activities that influence the merit of the product and
attract larger consumers can be termed as promotion. Potentially, a large
organization like TY NANT is to be considered to invest high in
advertisement of its products. Furthermore, observing its current previous
customers, TY NANT has shown substantial progression in building brand
indentity and recognitiion. With its iconic product range, TY NANT has
obtained a worldwide recognition of the ulimate stylish refreshment.
Associations with publucations, film, media and asipirational events
further elaborates its promotional schemes in order to extent its market
segment parameters to broad level. For example, Per Ses, a world
renowned luxury restaurent in New York has complimented TY NANT to
well synthesize its premium positioning. The company also sells various
merchandises in order to promote the value of their product to the
targeted customers.

COMPETITOR ANALYSIS:
Implementing competitive advantage can always reverb from the
foundation of marketing strateigies. A simple three step model can
produce a breif understanding who competitor analysis begin.

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Marketing Management.
Critical Analysis of current practices in TY NANT and
Value addition evaluation.
Date: 14 May - 2013

Evaluating the
competitors

Assessing and
investigation of
competitors
advantage,
objectives and
strategies.

Selecting the
omnipotent
competitors to
tackle and win
the market
demand
Adopted from (Wilson, 1994)

Organizations find out the possible data attached to the growth and
development of its competitors. Further from this, the concerned
organization

later

assesses

information

to

reverb

its

competitors

strategies and objectives to target its market. However, elaborating the

significant variables of Marketing Intelligence3 is beyond the scope this
report; this report will procure its parameters to generalize the competitor
analysis from public available sources. The following will table will tabulate
an idea of the potential competitors TY Nant may have to face while
expanding their market segment in domestic, European and international
markets.
Report derived from: Ferrarelle, 2012; Badoit, 2009; Perrier, 2009; VOSS, 2013

EVALUATING THE
COMPETITIORS

ANALYSIS

SELECTING THE
OMNIPOTENT
COMPETITOR
ADVANTAGES

Ferrarelle

Best sommelier in the world,

Sponsors
the
Pizza
World
Championship, UNICEF VOGLIAMO
ZERO, camping against infant
mortality.

High Value Added promotion by

exchanging mutual benefits in a
profitable medium.

Perrier

High investment in promotional

and advertisement camping

Potential investment
awareness.

Badoit

Follows the strategic advantage of

TY Nant.

Should
Nants

in

public

be understood that TY
Market penetration has

Day to day information of relevant organization which are gathered, evaluated and analysed specifically for
reliable and confident (most of the times, classified) data to implement competitor evaluation and competitor
strategies.

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Marketing Management.
Critical Analysis of current practices in TY NANT and
Value addition evaluation.
Date: 14 May - 2013
been successful.

Voss World

Highly
induced
marketing
segmentation,
Online
corporate
transparency,
worldwide distribution

Potential threat in attracting

the market segments. Current
Market segment for VOSS has
been targeted to potential
consumers
such
as
film
industries and celebrities. High
investment in promotion and
corporate marketing. Online
corporate transparency to gain
more customer equity.

COMPETITIVE STRATEGY:
After

the

possible

recognition

of

the

omnipotent

competitors,

organizations must now implement strategies in order to consolidate its

objectives with the strategic goals of the concerned organization. The
ultimate purpose of this is to race its marketing potentials from the
competitors. After all, the ultimate purpose of the marketing concept is to
influence profitable benefits by inducing value proposition and customer
satisfaction.

Reconsidering

the

bottled

water

industry,

several

entrepreneurs have adapted the Niche market4 segmentation towards this

sector,

creating

dynamic

yet

complex

parameters

in

achieving

competitive advantage. Further to this, this report will state the marketing
strategy of TY NANT in a summarised pattern following concise yet
summarised models of Porter and Ansoff. Displayed below is Porters
generic model for competitive advantage ( as cited in Ormanidhi &
Stringa, 2008). According to the porter analysis, Micro and Macro analysis
of the environment is to be developed in order to create the right target
and

positioning.

Throught

the

amalgation

of

these

of

variables

systematically, competitive advantage, however in a complex nature, is

inevitable.

Subset of the market on which target of the specific product is deployed. In short, these products satisfy
specific consumer needs and market demands.

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Marketing Management.
Critical Analysis of current practices in TY NANT and
Value addition evaluation.
Date: 14 May - 2013

Porters Generic Model for Competitive Advantage:

A

Uniqueness perceived by customer

Low cost

position

DIFFERENTIATION
LEADERSHIP OR LOWER COST

COST

B
C
FOCUS
Cost Focus, Differentiation Focus, Cost and Differentiation focus

Adopted from Porter (1985)

Competitive advantage strategy pursued at TY NANT (In

Porters view):
Assumption derived from:

TY NANT, 2010

http://www.tynant.com/USERFILES/FILE/BOTTLED%20WATER%20REPORT%20-%20TY%20NANT
%20STILL%20-%20ENGLISH.PDF.

TY

Nant

has

substantiated

its

competitive

advantage

through

differentiation focus in the UK and European Markets. Elegance and design

has been one of the noticeable variants fusing its competitive advantage.
While TY Nants distributors have high end profiles, it simultaneously
achieved awards and recognition for its excellence in design and
elegance. In 2003, TY Nant introduced its products to retail outlets.
However, TY Nant has applied a distinct strategy for its international
operations. For instance, TY Nant acquired a growth of 35% in the US
market despite of recession claims (WalesOnline, 2011), making it

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Marketing Management.
Critical Analysis of current practices in TY NANT and
Value addition evaluation.
Date: 14 May - 2013
observable that TY Nant implemented cost and differentiation strategy to
attain such progress.

Competitive advantage strategy pursued at TY Nant (in

Ansoffs view):
Most commonly, Ansoffs product market growth matrix is an ideal
representation to determine the growth and development of the
concerned organization. The matrix is devised into four columns tagged as
Market

development

strategies,

diversification

strategies,

Market

penetration strategies, product development strategies.

Ansoff product market growth matrix:

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Marketing Management.
Critical Analysis of current practices in TY NANT and
Value addition evaluation.
Date: 14 May - 2013
Adopted from (Chaffey, 2011)

TY Nant has extracted two concise strategies from the matrix above. This
derivation has been implemented from the geographic targets around the
organization. TY Nant uses product development strategies to elaborate
their

market

segmentation.

According

to

recent

case

study

(Wbadmorgan, 2012), TY Nant develops a value added proposition to its

product in terms of its merchandise, elegance, design and distributors.
Reconsidering its operations, TY Nant distributes its product to 36
countries around the world, observably performing market development
strategy (TY Nant 2013). However, TY Nant has not shown observable
progress in European and domestic markets, while its sales inclined to
50% to international markets. This reassures that TY Nant has developed a
successful market penetration strategy in international markets.

TECHNOLOGICAL DEVELOPMENTS IN THE FIELD

OF MARKETING:
Innovations has always been the dominant phenomenon in global
business markets. Most common medium of communication are TV, radio,
internet and visuals. Progression in technology has been influential to all
the organizations expanding their market to several segmentations,
pressuring marketers to implement strategies for their products to
position themselves in an optimal media mix (Advertising Age, 2010).
Following points will help TY NANT to enhance their marketing through
technological aspects.
1. Social Media: Elusive word of mouth phenomenon has always
been the hurdle advertisers sought a way. Social media makes an
immediate medium of live consumers response. This allows
marketers the option to monitor further and contribute more
efficiently. The impact of social media has been substantial as it
shifts the conversation to the consumers at an unprecedented level
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Marketing Management.
Critical Analysis of current practices in TY NANT and
Value addition evaluation.
Date: 14 May - 2013
of control over each brands, eventually making them as the best
advertisers of the brand.
2. Interest Based advertising (Behavioural Targeting):
Behavioral targeting is persuasive for many customers. This trend
has developed a high level of precision. However, the level of
caution to be observed here is that consumers are suspicious of
being watched on the web. It is to be understood that self-regulatory
principles have already been in legislation protecting statutory
rights in ad-supported act, where the consumers have the right to
allow such ads to be visualized without their personal consent and
declaration.
3.

Mobile advertising: Considering this trend can be beneficial

for TY Nant. According to Advertising age (2012), mobile advertising
industry is expected to be $1.56 billion in 2013. Internet reveals the
potential users for each market allowing them to develop an
integrated marketing strategy.

4. Marketing MIX Modelling: This particular trend provides

analysts with opportunities to think more precisely about integrated
marketing. Innovation in technology has found ways to create highly
productive

media-decision

models

by

intertwining

analyses

of

consumer sensitivity to a brand's media platforms. This mechanizes the

opportunity to increase and enhance marketing plan while reducing
overall costs and budgets.

CONCLUSION:
In comparison with the financial data (Refer Appendices), it was observed
that TY Nants gross profit had a decline along with the annual turnover.
One possible derivation from this is that TY Nants production has gone
down which might have occurred due to fall in sales. Furthermore, as
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Marketing Management.
Critical Analysis of current practices in TY NANT and
Value addition evaluation.
Date: 14 May - 2013
analysed above, TY Nant has not shown observable progression in the
domestic market. With the increase in competitors in the same sector,
austere governmental

reforms

and legislations

makes

the market

penetration even narrower. According to FSA (2007), the fair trade trinity
reform obligates the regulation that bottled water industry operations has
to follow both domestic and european regualtions. Further to the
observation in the financial data, the cost of sales has shoen substantial
increase due to promotional conepts applied to promote their product. It is
also observed from the analysis and data provided that TY Nant sells most
of its product to international markets due to tax benefits and pricing
strategies. This interestingly seemed build profitable relationships for TY
NANT.

Recommendations:

Increase the sales of the company in the domestic market

through strignent market penetration strategies.

Conider the size of the target market. TY Nant must subtantiate

its approaches to retailer sector and compete in normal price
range.

Try investing in a sub company to compete with the retail sector.

This will enhance the market segementation for TY Nant.

TY Nant can subtantiate competitve pricing strateigies and

concentrate more on boosting the sales volume so as to increase
the profits.

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Value addition evaluation.
Date: 14 May - 2013
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Value addition evaluation.
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