La Vie Mineral Water Company I.

Executive summary

With more and more modern, advanced economy, people pay more attention to food, accommodation and other needs for life. This leads to the development of food, drinking water industry, including bottled water market. Especially, the hotter weather is today, the more demand for water rises. "The food and beverage are witnessing the rise of the bottled water division, particularly in emerging markets .... Bottled water is one of the "public spirit" to contribute to the revenue and profit in its third quarter of 2010 of the food and beverage such as Danonoe (France), Nestl (Switzerland) and Coca-Cola (USA) (http://www.massogroup.com). In which La Vie and Aquafina are two leading brands. In this assignment, we go deeper into the top brand- La Vie on the following points: company analysis, environmental analysis, competitor analysis, customer analysis, brand analysis, SWOT analysis. Through findings, we find out the strengths and weaknesses as well as challenges and opportunities to contribute to strategic decisions of the company. It could be shown that La Vie has certain strengths of the technology, trusted available brand from Coca Cola, understanding the market, good quality and many opportunities to expand market share, revenue. However, because of increasingly dynamic market, La Vie faces to more challenging. Many competitors with more sophisticated tactics, along with a few shortcomings in the perception about competitors, customer trends can also make the company have more difficulty. A typical example is that because of lacking taste test, La Vie was almost stolen the top spot by Aquafina. La Vie should do more taste analysis between pure water and mineral water to reinforce its the advantage that provides enough mineral extent for the body. Besides, La Vie also focuses on enhancing the position further and spreading its brand by pushing up promotion and introduction of products instead of only selling. Therefore, in spite of the head company, board of La Vie Company should be very careful in their strategic decisions.

II.

Company analysis

La Vie is a member of the Nestle Waters Corporation the largest bottled water corporations in the world with 72 major brands and is present in over 130 countries. Established in 1

La Vie Mineral Water Company September 1992, La Vie is a joint venture between Perier and Vittel (French, owns 65% of capital), has become a leading company in the bottled water industry. La Vie was first launched in July 1994 and developed quickly into the industries bottled of water in Vietnam. La Vie is the first beverage company in Vietnam that has reached international standard certification ISO 9002 for quality assurance in 1999.

2.1. Company missions La Vie states that its mission is to bring to communities the best natural mineral water from deep underground with healthy minerals, maintaining vitality and feeling fresh from. The building up a separate and unique brand has brought initial success to La Vie. We do not forget the old adage "natural mineral water La Vie-purity natural magic", "healthy living with natural mineral water sources La Vie" or "La Vie for a natural skin healthy ".... it has brought distinct with others and set the target customers of a famous brands. La Vie was relentless efforts during the recent past, the goal of ensuring safety and health for the target user is placed on top direction of La Vie brand. So, La Vie always keep in their mind the philosophy always satisfy customers with high-quality, safe, and diverse products, the best service and competitive prices, creating consumers awareness for sustainable long-term brand La Vie to satisfy the demand and its is also one of the most necessary mission to get the company nowadays.( http://www.laviewater.com.vn) Besides, in order to develop platform for a social enterprise, La Vie has reinvested and committed to society through the integration of production and business activities with social activities, sticking members together and contribute to building roof La Vie.

2.2. Company objectives To get that result, La Vie was acting under the right strategy and creativity. In 2009, La Vie has done advertising campaign "The Little Mermaid and Garden Eden" through not only images but also the clear message with type of natural mineral water safety, healthy and tasty offer while enjoying cool to refresh and recall for your brand and increase awareness La Vie natural mineral water is pure and healthy today. Besides the aim of expanding the scale of production in Vietnam is also emphasized. La Vie continues to expand its existing geographical coverage and product portfolios to maintain its 2

La Vie Mineral Water Company sustainably dominant position in the local market and its brand. Since 2009 La Vie has invested two production lines and continues to expand investment to date, especially investment projects $ 6 million to install production lines new production plant in Long An. In 2009, continuing project to upgrade a second factory in Hung Yen to achieve further productivity hoping to supply the demand of pure natural mineral water to consumers in Vietnam( http://nhipcaudautu.vn ) La Vie is currently in intensive investment phase for new products according to consumer trends, "Good for health and environment-friendly" and they always set out clear strategic objectives for each customer segment to have different type of drinks and bottled for different age groups towards each client with different purposes (such as the type of bottle: 360ml, 500ml, 1L, 19.5l)...is important in the La Vies strategy. (http://www.marketingbranding.vn ) By Mr. Riehle Matthias Wolfram-General Director of La Vie Vietnam, company' s organization will evaluate the market needs to develop more diversified products, product improvement, packaging, there are many forms of promotion to attract customers, and expand market schools to remote areas of the country of Vietnam, expanding value-added products in order to increase the companys profitability. Over the next 12 months, the company set its own objectives:

Maintain the best quality with a suitable price by applying modern technology in manufacturing product; making the effort to deserve the trust to customers. (http://caonguyenxanh.com.vn)

The company has started implementing a project to expand and develop healthy beverage products such as carbonated mineral water La Vie, a small bottle for the baby as well as restructuring of its production scale.

III. Environment analysis 3.1. Economic Factors The economy is showing signs of recovery Vietnams economy is showing signs of recovery, with the national economic growth rate in the first nine months this year estimated to increase by 4.59 percent compared with the same period last year, according to a report of the website of Vietnams Ministry of Planning and 3

La Vie Mineral Water Company Investment (MPI). (http://thechina.biz/china-economy/vietnams-economy-shows-signs-ofrecovery-mpi/). In the first nine months, Vietnams industrial production and retail sales are expected to see year-on-year increases of 6.5 percent and 18.6 percent to 28.35 billion U.S. dollars and 47.37 billion U.S. dollars respectively, said the MPI. The MPI forecast that Vietnams economic growth rate this year would be five to 5.2 percent. Up to now, Vietnam has responded very well to the global economic crisis this year. Vietnam's economy continues to grow through the Government has done well to expand fiscal policy and monetary boost consumption. Inflation Standard Chartered bank has just revealed its report on Vietnams economy over the first 8 months of 2010. The report includes the banks assessments on issues related to inflation and trade deficit. Inflation has remained under control at 8.2% compared with the same period of last year and the total value of trade deficit in August alone was stable at USD900 million. Inflation of food, which is a major component of the basket of consumer goods, accounts for 40% of the total value of CPI that has risen in last 3 months. However, its increase was not strong enough to impact other factors involving inflation which tend to decrease.

3.2. Population, population structure, reduce population growth rates Vietnam has entered the Golden Population Structure period, an opportunity that happens only once in the history of demography of each nation and will make a contribution to the countrys social and economic development. Vietnam is now in a golden population structure period, with young people aged between 1024 accounting for nearly one third of the nations total population. According to the population prediction of the General Statistics Office: 2019 the population of Vietnam 95.3 million 2029 102.7 million 2049 108.7 million

La Vie Mineral Water Company The gender ratio in the group of elderly people (60 years of age and older) is relatively low (67.8%) due to the higher mortality rate of the males and to the aftermath of the past war, the gender ratio of children under 15 is relatively high (106.9%). The results of educational analysis show that the ratio of literacy of the population ranging from 15 years of age and older is 93.5%, a 3.2% increase over that in 1999. Thus, our country with large population, rapid urbanization, a large proportion of young people is a good market with abundance of clients for business.

3.3. Natural Geographical location: Vietnam is located in extreme southeast Indochina. Vietnam bordering the Gulf of Thailand, Gulf of Tonkin, and South China Sea, alongside China, Laos, and Cambodia. Thanks to its favorable geographical position of Vietnam hence the products easily trade with partners across the country as well as in the region and around the world by land, waterway and the airways. However, the distance the South -North was very large the distribution, supply products for the northern market difficulties of transportation costs. Climate The characteristics of climate in Vietnam have tropical monsoon climate, with large annual rainfall and average temperature is high. The characteristics of this climate the demand for beverage of people throughout the territory is very high. The company La Vie will be offered a vast market with a large number of customers. On the other hand tropical monsoon climate also provides companies with abundant water, natural resource abundance. (http://www.vnwatersectorreview.com) 3.4. Technology factors Today, the science of technology is developing rapidly, the changes of technology especially in the production line is non-carbonated beverage concern. These technological advances create new competitive advantages .Therefore , the company with strong capital can enter on the equipment, advanced production line will improve volume and product price, nice design products, providing a competitive advantage. (http://hoidoanhnhan.vn) La Vie is the first beverage company in Vietnam to achieve international standard certification ISO 9002 for quality assurance in 1999, is known for many years to reach the 5

La Vie Mineral Water Company Golden Dragon Award of the Ministry of Planning and Investment for manufacturers of high quality and create new products to reinforce the image of La Vie is a top-quality products.

3.5. Culture - Society Tastes, trends Nowadays, Vietnam is a developing country, so the consumer demand necessary for life is still very high proportion of the consumption structure - about 50% and a high proportion will be for many years again when people's lives improved. If the previous years, the carbonated soft drinks are popular this year dominated by pure water. According to a survey of a number of companies producing pure water in Vietnam, the market growth of this item is 25% per year with many different species. Habits and tastes Life increasingly demand high, consumers choose to use natural mineral water to save cooking time and still provide enough minerals for the body, just pop the lid is already having a cool water bottle cold. There are many people have formed the habit of drinking water using "industry" is available in bottles.

3.6. Political factors - Law Political stability and consistency on major opinion of policy that investors are optimistic outlook about the market, so this is a factor in attracting large amounts of foreign

investment into Vietnam. On the other hand, political stability and contributing to the expand production of the enterprise. Bring political stability of foreign investment capital to enterprises that can rely on that source of capital for business development, the expand market share. But, economic law system has still flaws that Vietnam is gradually overcome In the advertising sector also needs attention when product quality is not exactly what information businesses. This causes incorrect information to customers, reducing the company's reputation. (http://tuoitre.vn)

IV. Competitors 4.1. Indirect competitors 6

La Vie Mineral Water Company The indirect competitors of La Vie are water filters appearing increasingly popular in both home and office and different types of soft drinks such as 0 Green tea, Number one, C2, Lipton, even beer. However, these water filters were quitted out of the market because their refreshments are lower than natural mineral water or mineralized water

(http://blueseawater.com). Beside, as 0 Green tea, Number one, C2 that are stronger competitors than water filters. By accessing consumer tend, as 0 Green tea appeared with logo healthy, C2 with cool and pure. However, advertising strategy (and the distribution system) of C2 green tea, up to now, has not yet achieved significant success. Then, a new type of beer was introduced with the new form of bottled fresh beer products first in Vietnam, Laser beer. But its life is not very long, because of the unintended (or measure ... not true) about consumer tastes, and the power distribution system of the opponent. These mean indirect competitors could not change the market share of La Vie in particular and bottled water in general yet. 4.2. Direct competitors The direct competitors of La Vie are different types of mineral water such as Vnh Ho, Thch Bch, Vital and types of pure water such as Aquafina, Sapuwa and Joy. However, we should analysis strongest competitors: Vinh hao and Aquafina. 4.2.1. Vinh Hao Strengths Vinh Hao mineral water is a long-standing brand in Vietnam and spent a long time to stick with Vietnamese consumers. Thus, Vinh Hao became a very familiar name. The only brand of mineral water is perceived, while the others were confused into pure water, due to high mineral concentrations. Weaknesses After release to date, bad changes in the various forms of activities and promotion, the image of Vinh Hao was increasingly blurred. 7

La Vie Mineral Water Company Products are consumed only in Binh Thuan Province (where the head office of the Vinh Hao) and neighboring Ninh Thuan province because high mineral content Not suitable for using daily. If exceeded minerals can cause out of mineral diseases such as kidney stones.

4.2.2. Aquafina

Strengths Target customers: high income and young people. Image-building strategy of Aquafina brand: always associated with target young people, Aquafina uses tactics: sponsor of sports activities, fashion shows. The names of Aquafina has accompanied with professional tennis as Heineken Tennis, Tournament, the Toyota Women Open or professional golf tournament as GANNON Vietnam Open Championship ... Pepsi has spent the investment cost for advertising remained high (more than half a million dollars to promote Aquafina). For example: fund for the program "Fashion & Life" on the Ho Chi Minh Television Station (2002), "bombarded" advertising on radio stations, television, newspapers with famous models, singers or actors as Thanh Hang Available advantages of the wide distribution system, Aquafina quickly reaches consumers. Aquafina with pricing strategies, hype has led consumers to recognize a drinking water that is high quality but cheaper, said Gilles Duc, general director of La Vie Company Limited (http://www.brandsvietnam.com). Gives a new insight, 70% of your body is water and image of a naked girl dancing in the dark with the message The beauty comes from the purity, this made consumers feel the dynamic, the purity and the meaning of health of Aquafina, and bring attention more sense emotionally (http://www.iamvn.com). Recognizing taste is one of the main reasons that customers believe and decide to buy bottled water products and introduce a new slogan:" taste of purity" that really impressed consumers. Ms. Yen, marketing manager of Pepsi Co. Vietnam, said: "Perhaps, for the consumer, the purity is the number one standard and Aquafina has 8

La Vie Mineral Water Company achieved absolute purity, giving them a feeling of enjoying its own taste" (http://www.thucphamhanoi.com). Weaknesses Entering into Vietnam market later, Aquafina may not understand trend of consumer as much as La Vie yet. The distribution of Aquafina is not as large as one of La Vie, not penetrate into home and office channel and average net weight of the bottle only limits at maximum 1.5L. 4.3. Positioning Map

High quality

La Vie Aquafina Low price Vinh Hao

High price

Low quality

V. Customers analysis

5.1. Behaviors Market customers are diverse and different needs, buying behavior as well as the purpose of their procurement. Pure water market too, they are divided into groups such as regular user groups, the loyalty, the opportunity to use, the benefits received from the purchase and use products (http://thumbelina.com.vn).

La Vie Mineral Water Company The group regularly use: They are people who have the habit of using pure water daily, the group is always consumed in large quantities (for example: students, office workers, workers... etc.). Group loyalty: loyalty can be connected to the frequent use of a certain brand and they depend on the price or other promotional advantage. Group by interests: consumers really looking for specific benefits that can provide products to satisfy these needs rather than product search.

5.2.

Psychographic

Life increasingly demand high, consumers choose to use natural mineral water to save cooking time and still provide enough minerals for the body. According to the habits and tastes, it seems that today people tend to use the mineral water of natural origin (http://nuockhoangvital.blogspot.com/)

5.3.

Demographic

Both the young, elderly, low income or have high demand for quality drinking water, health and safety. Especially with children, such requirement has

been enhanced. Besides satisfying beverage is, those with high incomes also expect pure water has more nutrients to assure the health and enhance the beauty of skin.

(http://www.dinhduong.com.vn ) According to a survey by market research firm AC Nielsen, the market of bottled drinking water is accounts for 22% of the entire soft drink market in Vietnam with the average annual growth of 26% since in 1995. This growth will continue this year. Purchasing power increased by some on the middle class increased while clean water is becoming increasingly urgent. 5.4. Geographic

Currently, people in the townships, towns and even villages in rural areas, mountainous areas are water services sold prepackaged in containers shipped to your door. The demand for fresh water use in areas with great population density and increasing (for example: the city, town, etc.). 10

La Vie Mineral Water Company Summer demand for pure water due increased demand refreshment After the scandal "pure water" fake leaves consumers confused, with wholesale prices 5000dong-8000dong/pot only 20 liters, water quality labeling reagent is difficult to convince on the quality and safety. Hence, consumers often choose the type of drinking water reliable big brands. So the brand is increasingly becoming the source of all preferred and trust, despite the competitive market is very huge. Along with the development of national economy, there are a lot of people interested in improving the quality of life. Besides the basic needs of food clothing, transportation, housing, the water occupies an important role in the daily lives of people. However, until now, consumers care more about the source water they buy and the products derived from nature is often a lot of attention and confidence of consumers.

VI. Brand analysis 6.1. Product Life Cycle Stage of La Vie Today, bottled water market is very lively placing and gradually removes the boundary between pure water and natural mineral water. For the bottled mineral water segment, La Vie (now part of Nestl) continues to occupy the top spot at a rate far exceeding the market share followed by 2 brands Vital and Vinh Hao. Along with the strongest competition - Aquafina, La Vie are in very strong development stage. Mr. Riehle Matthias Wolfram said, since 2004, La Vie has continued to hold significant market share in the bottled water segment. To reinforce this position, since 2009 La Vie has invested two production lines of $ 6 million to further expand investment to date (http://e-money.com). According to a survey by market research firm about bottled water industry (conducted in 11/2009 in two major cities: Hanoi and Ho Chi Minh City), La Vie's market share in the bottled water market is now 31% http://www.brandsvietnam.com). In addition, perception of many consumers has changed, they better understand the effects of mineral water for health, therefore, and La Vie mineral water is being consumed more and more. If specified into the average number of liters a day, there are more than three million cups of water to consumers. Vietnamese consumers consider La Vie as a type of bottled water market that is good quality and heathy. Along with the strong growth of the bottled water market in Vietnam, La Vie has developed high-quality

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La Vie Mineral Water Company product lines by the introducing its new products - La Vie carbonated mineral water - bring to consumer new experience of the same trusted brand.

6.2

The 4Ps framework

6.2.1 Product La Vie is bottle right at Khanh Hau and Hung Yen sources with the most advanced and fully automated technology, under the supervision of Nestle Water, the leader in bottled water. La Vie is pure natural water, which means that according to Vietnamese and WHO regulation, it can not be chemically processed. Only natural processed like filtration are allowed to bottle natural mineral water, to preserve its natural qualities and unique composition. Quality standards applied to La Vie water exactly the same as the ones applied in Europe, USA or other large markets, and La Vie meets all the criteria in the most stringent regulations, ensuring you have a perfect safety and quality record for every bottle. For instance: Every month, samples are tested by most expert laboratories in France and in Pasteur Institute in Vietnam. Nestle Water also conducts regular audits of La Vie factories to ensure compliance with hygiene and production performance at highest level. According to the official definition from the Ministry of health: Mineral water comes from underground natural source of water, which is exploited under Ministry of Healths permission. In addition, it provides stable amount of good mineral substance for body. Besides, it is bottled directly from its source and maintain of all the good substances for body by the completely self-contained system. The water quality is strictly, flowing the safe hygiene requirement of given regulation.

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La Vie Mineral Water Company There are many different designs which suitable for all objects and situations (350ml,500ml, 1.5L,5L, 19L) that La Vie is always the best choice to drink daily in the family, when a meal outside, playing sports, picnic.(http://www.laviewater.com.vn/)

In addition, La Vie is packaging always contact telephone number when the customer wants to order. The contact numbers is putting in labels, bins,

6.2.2. Place 13

La Vie Mineral Water Company Distribution system is managed strictly by each market (5 main areas): the Northern provinces, Hanoi, the Middle, southern provinces and Ho Chi Minh. La Vie well known brand of natural mineral water, is the market leader in bottled water in Vietnam. According to the Director of La Vie Vietnam Mathis Riehle said that each day, over 2 million bottles of La Vie is consumed in the country. In 2010, they invested 6 million USD in new production lines at Long An factory to produced more with a line producing 18,000 small bottled per hour and 1,000 bottled for 5 gallon and also upgraded the production line in Hung Yen factory. In 2011, La Vie Company developed more variety of products, changing their packing, design and at the same time, expanded market to more remote area in the country. Systems distribution channels include La Vie manufactured, dealers, and retail stores. La Vie not build systems for retail stores own, the system of retail stores to join the channel's distribution system La Vie shops are available on the market and brand reputation, distribution channels throughout the provinces, the system retail expansion and increased production capacity.

6.2.3. Prices Currently, La Vie set a quite high price level compared with others same kind of bottled water, but it is still leading in the bottled water market. La Vies pricing decision is influenced by both internal and external factors. So, in order to stay stable in that market, La Vie has efforts developing and planning at the right price belongs with the brand and quality products to meet target customers. The price level of La Vie is setting higher than others, on May 2nd 2012: (http://www.vatgia.com ) Vnh Ho 79,000VND

Price

bottled 24bottles -500ml

La Vie 93,000 VND

Aquafina 93,000 VND

Vital 82,000 VND

The cost to produce, distribute and sell the product also are the most important elements in La Vies pricing strategy, because based on this, La Vie can set a right price level that can maximize profits and have market share leadership. Sometime, the reduction in production 14

La Vie Mineral Water Company costs can affect a brand of high-quality products known for years, so instead of reducing price of product, La Vie always focused on satisfying value of customer, improving product quality and upgrading modern machines system, and have some promotion program as consult and meet all customer needs or giving a porcelain vase when purchased 10 bottled waters 19l. Moreover, setting new- product pricing strategy (carbonated mineral water) also is one way that can maximum revenue from the segments willing to pay the high price (high income people, company, etc. ). So, the combination between cost and value based pricing bring about the success of La Vie Mineral Water Company.

6.2.4. Promotion Media advertising: "The Little Mermaid and Garden Eden" The advertising illustrate the content most animals function implications of natural origin essence of natural mineral water, La Vie, the "soft cool and soothing sound" of water, make the most words describing feelings to strengthen feelings, emotions when customers see this advertising and La Vie suitable for young children. The clear message is that La Vie is one type of natural mineral water safety, healthy and tasty. .

Public relations, sales promotion La Vie is sending reference book about mineral water to university in Vietnam. Carry out programs aim at increasing knowledge of teacher and student about water, how to preserve water and its resources. La Vie brand has sponsored programs that held by the Viet Adventure. In addition, the organizers committee criticized a portion of money to fund the WWF (World Wide Fund for Nature) - to protect the Nam Cat Tien National Park. La Vie sponsored for the fifth European food festival in Hanoi on May 22, 2010. World Water Day, La Vie brand has to secondary schools in Hanoi and HCMC to help students understand the importance of clean water, clean water current situation and guide rational use of water (Vietnam.net). HMC: consumers purchase or rent 1 hot and cool dispenser will receive 3 coupon or 3 19l La Vie bottles free charge (Jun 1/2011 to Dec 31/2012). Consumers buy or rent a cooler IGO (apply to Company price) get 5 bottles 19l or 5coupon free. Consumer buy 200 coupon gets a cooler IGO free (http://www.laviewater.com.vn/) 15

La Vie Mineral Water Company Direct and online marketing Writing articles on the topic "Nc c v hay khng?", Hnh trnh k diu ca nc khong, Mn qu sc sng t thin nhin, etc. Besides, citing the comments review of the bartender, nutritionist and the benefits of the superiority of La Vie, and the habit of using La Vie by singer, actress, model,etc, who young people love and trust. In the economic downturn, most companies have experienced difficulties and costs for marketing budgets also less. The marketers have turned to a channel access clients with less the cost, which is online channel as La Vies online marketing campaign called magical journey (www.hanhtrinhkydieu.vn, laviewater.com). Personal selling Using coordinated with the new campaign on the media and Internet channels. La Vie has activities to interact with the consumer. According to information provided by the marketing department and sales of limited liability companies La Vie, mainly sales from the main distribution channels including: Traditional retail channels: grocery store and water vending. Through the retail channel system-hotel restaurants. Channels modern retail supermarket. Channel delivery.

Consequently, marketing activities at the Point of sales materials and promotions to attract and enhance their awareness and promote the purchase by providing La Vie images interesting and beautiful of the brand on the refrigerator, shelves, roofs, umbrellas and other products offered together (raincoat, cup).

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La Vie Mineral Water Company

VII.

SWOT analysis

7.1. Strengths As a one of pioneer product in the market of bottled mineral water, so the first time La Vie will not face the direct rivals with the slogan The essential part of life. La Vie is bottle under the supervision of Nestle Water which is the worlds leading nutrient, health and well company. As the product positioning in the consumers mind is a healthy drink. Compared to bottled water brands La Vie Vietnam is another packaging design environmentally friendly, easily distinguished between other bottled water brands such as Auafina, Vinh Hao,, creating competitive advantage (primary image: dandelion, water, baby,match with brand). Channel delivery at home for La Vie 19L. a. Weakness The company does not have the investment to promote products specific widely since leading bottled water market. Giving more promotion to gain the T.O.P of customer by building messages about products and services (advertising, price, packaging ) on the communication channels (TV, radio,) Many people believe that water does not taste, La Vie difficulty saying a taste of water. Building the concept of "taste" of La Vie water. In Paris, company Nestle has invited experts including Chef, Sommelier and an expert about tea comes from Sweden, France, Taiwan and the U.S. Over 140 tasting colorless water, during the blind testing using each of them and note tastes and defined them to different group and have logos for each of its. b. Opportunities In 2009, every consumer in Vietnam used more than 28,100 VND purified water and used more than 10,200 VND for mineral water, rising respectively 3.9% and 4.8% compared to 2008. Forecast, at the end of 2014, the bottled water market in Vietnam will reach total sales of about $ 279 million, total output market is estimated at over 307 million liter. (Source: Datamonitor Company, UK).( http://www.iamvn.com/vn/ )

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La Vie Mineral Water Company The income and perception of many consumers in Vietnam has changed; they better understand the effects of mineral water for health and cared product with high quality. La Vie mineral water is increasingly consuming more. c. Threats There are a lot of competitors in the pure water market (Aquafina, Vinh Hao, Thach Bich,..). More and more bottled water brands cheaply create competitive pressures for the La Vie brand. Currently, the bottled water market appears not guarantee products quality, affecting the health of consumers. This made many consumers gradually lose confidence in bottled water products. That is the challenge for manufacturing bottled water brand in general and La Vie in particular. Weak punishment on the enterprise that infringe the business ethic. Keeping always satisfies customers with high-quality, safe, and diverse products, the best service by published the results of water testing regular.

Through the SWOT analysis can be seen that the problem of pure water product brands La Vie is facing on Vietnam market: How many percent of people think of La Vie bottled water first when remind the pure water? How many people recognize La Vie is natural mineral water? How many people get to know the taste of La Vie? How many people know about the benefits of La Vie? What are the benefits that they get? VIII. Conclusion This research introduces historical development, policies that bring about the success and inefficient and ineffective policies through the performance analysis of La Vie Mineral Water Company. La Vie has many policies that seem to be the strength in competing and developing brands such as a good product positioning in the consumers mind, it needs to affirm brand in not only old customers but also new customers. Besides, innovating packaging design, taste, primary image are necessary to create more competitive advantages. It also should focus on delivering channel that serves for households, schools, offices and 18

La Vie Mineral Water Company companies because it accounts for a large part of revenue of La Vie. In contrast, some other policies of the company also have the weaknesses that do not satisfy the current needs of customers. Especially, the company did not consider advertising, promoting and improving customer service; they are too confident in quality of product and think that this is most important to customer. Nowadays, there is so much competition among bottled water companies in the market, especially the appearance of bad quality products or counterfeit items make customers lose belief on brand of real bottled water products. Additionally, social life is increasingly improved; customers will pay more attention to quality of product and the benefits that they get when using that product. Therefore, promoting, improving and creating the trusty, safety to customers are the most important policies to meet demands of consumers and increase purchase power and competing advantages. Thus, the board of company must understand that there are some barriers to overcome and it is necessary that the company should make use of opportunity advantages to improve the strategic decision efficiently and effectively.

Words count: 5,512

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La Vie Mineral Water Company

IX. References Cng Thng, Lavie khng nh uy tn thng hiu, [online], Available at http://caonguyenxanh.com.vn/lich/modules.php?name=News&op=viewst&sid=335 Hng Nguyn, August 29th 2008, Hn chin ca nhng v tr, [online], Available at: http://www.tgvn.com.vn/printContent.aspx?ID=3019 (Accessed on April 27th 2012). Hng Nga, June 3rd 2010, Bi 1: Mt mt, mt cn [online], Availabled at http://doanhnhansaigon.vn/online/tin-tuc/kinh-te/2010/06/1044472/bai-1-mot-mat-mot-con/, (Accessed on April 18th 2012). L Hoa, December 26th 2007, Thng hiu Aquafina, [online], Available at: http://www.massogroup.com/cms/ (Accessed on April 26th 2012). L Trung Thnh, 2010, S THT NGM HIU CT LI CA MARKETING, [online], Availaible at: http://www.iamvn.com/vn/default.aspx?cat_id=0&news_id=161

(Accessed on April 22th 2012). Thin Cm, September 3rd 2009, Lavie m rng quy m sn xut ti Vit Nam, [online], Available at http://nhipcaudautu.vn/article.aspx?id=1949 ( Accessed on April 26th 2012). Vnh Bo, January 3rd 2011, Si ni th trng nc ung ng chai, [online], Available at: http://www.brandsvietnam.com/post/16636716731/soi-noi-thi-truong-nuoc-uong-ong-chai (Accessed on May 1st 2012).

Anonymous Cu chuyn nc khong La Vie c ga, 2006, [online]. Available at: http://vietbao.vn/Vi-tinh-Vien-thong/Cau-chuyen-nuoc-khoang-La-Vie-coga/55128818/226 (Accessed on April 24th 2012).

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La Vie Mineral Water Company Geographic and map of Viet Nam, November 1st 2005, [online]. Available at: http://geography.about.com/library/cia/blcvietnam.htm (Accessed on April 18th 2012). Foreign investment remains strong in Vietnam, September 10th 2010, [online], Available at: http://dtinews.vn/en/news/018/4661/foreign-investment-remains-strong-in-vietnam.html (Accessed on April 22th 2012). For Vn Economy, V sao Lavie thnh cng Vit Nam, [online], Available at: http://www.marketingbranding.vn/index.php?option=com_content&view=article&id=1680% 3Avi-sao-la-vie-thanh-cong-tai-viet-nam&catid=8%3Aphong-thy&Itemid=34&lang=vi (Accessed on April 20th 2012). Hon thin chnh sch phn phi sn phm, March 1st 2011, [online], Available at: http://tailieu.vn/xem-tai-lieu/hoan-thien-chinh-sach-phan-phoi-san-pham.490007.html La Vie khng nh uy tn thng hiu

[online].

Available

at

ULR:

http://hoidoanhnhan.vn/news_detail_hdn.php?id=2721 (Accessed on April 22th 2012). May 2nd 2012, [online], http://www.vatgia.com/675/1179798/n%C6%B0%E1%BB%9Bcu%E1%BB%91ng-tinh-khi%E1%BA%BFt-lavie-500ml.html (Accessed on May 1st 2012). News Digest: Vietnams economy shows signs of recovery: MPI, December 16th 2010, [online], Available at: http://thechina.biz/china-economy/vietnams-economy-shows-signs-ofrecovery-mpi/ (Accessed on April 18th 2012). Ngi tiu dng c quyn li g?, July 12th 2011, [online], Available at: http://tuoitre.vn/Kinh-te/Nhip-cau-tieu-dung/446126/Nguoi-tieu-dung-co-quyen-loi-gi.html (Accessed on May 1st 2012). Ngun gc & ng chai, [online], Available at:

http://www.laviewater.com.vn/#ourstory?sub=source (Accessed on April 28th, 2012). Nc khong thin nhin thi quen v khu v, April 1st 2011, [online]. Available at: http://freshvn.com/index.php?option=com_content&view=article&id=166:nc-khoang-thiennhien-thoi-quen-va-khu-v&catid=25:the-project (Accessed on April 30th 2012). 21

La Vie Mineral Water Company Ti sao La Vie thnh cng VN? , December 5th 2011, [online], Available at: http://emoney.com.vn/229/tai-sao-la-vie-thanh-cong-o-vn/ (Accessed on April 18th 2012). Tng lc cho ma nng,

2007,

[online].

Available

at:

http://www.giaithuong.vn/giaithuong/tieng-viet/hoso-thanh-tich/to-chuc/1/cong-ty-cpthuong-mai-va-dau-tu-hoang-gia/bai-viet.html (Accessed on April 30th 2012). Viet Nam geographic, 19th

October

2010,

[online].

Available

at:

http://english.vietnamnet.vn/en/vietnam-reference/general-information/508/vietnamgeography.html (Accessed on April 18th 2012). Vietnams population, housing data on web, November 21st 2011, [online], Available at: http://en.vietnamplus.vn/Home/Vietnams-population-housing-data-onweb/201111/22411.vnplus (Accessed on April 30th 2012). Vietnam enters golden population structure period, June 17th 2011, [online], Available at: http://vietnam.vn/vietnam-enters-golden-population-structure-period c1069n20110617114303468.htm (Accessed on April 30th 2012). Water sector review, [online]. Available at:

http://www.vnwatersectorreview.com/detail.aspx?pid=107&r=5 (Accessed on May 1st 2012).

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La Vie Mineral Water Company Major Assignment Marking Scheme (total: 200 marks) 1. 2. 3. 4. Nguyn Th Hi Nguyn Th Hoa Nguyn Hng Lin Hong Th Quyn

Name of Students in the group

Title of Assignment Date

La Vie Mineral Water Company May 11th 2012.

Criteria

Very Poor

Poor

OK

Good

Very Good

Total

Executive Summary

10

Company Analysis

20

Environmental Analysis

30

Competitor Analysis Customer Analysis

25 30

Brand Analysis SWOT Analysis

40 30

Conclusion

15

Tng 200

23

La Vie Mineral Water Company

24