Market Research

SUMMARY

This market survey serves to provide increased market knowledge with a view to supporting an assessment of whether there is a  ommercial product and market potential for exporting bottled drinking water from Greenland glaciers. The survey is based on a funnel model. In the first part-surveys focus is on breadth, and the knowledge thus acquired is used to narrow focus in the following part-surveys. The process has thus been dynamic, and a number of adjustments in method and design have consequently been made. Four part-surveys and a preliminary investor identification have been made. In connection with the part-surveys different data collection methods have been used, including desk research and qualitative and quantitative data collection methods. The surveys aimed at consumers have been targeted at specific consumer segments. As an example, requirements have been made for consumption of bottled drinking water and the degree of knowledge of Greenland. The results of these surveys thus provide information on selected  consumer segments. The results presented in the report have been produced on the basis of an analysis across the individual part-surveys. Due to the special conditions for producing bottled drinking water from Greenland, it has initially been found to be most appropriate to focus on exclusive products. The market survey shows that the market for bottled water is growing, including the market for exclusive drinking water products. The exclusive segments grow the most – in absolute and in relative terms – in the USA and Japan, for example. Therefore, these two countries have been selected as a geographic delimitation in the market survey. As part of a further geographic delimitation, the areas in which the potential for selling exclusive drinking water is largest have been identified, and an area in each country has been selected for the market survey. The selected primary areas are Los Angeles and Tokyo. Potential consumers’ knowledge of Greenland is limited. Despite a selection criterion for participation in the surveys based on a minimum knowledge of the country, only between one fifth and one tenth of the interviewed consumers find that their knowledge of Greenland is good. The limited knowledge is reflected in the attitude of the consumers towards products from Greenland; an attitude which is typically neutral. Their primary associations in connection with Greenland for both markets are “cold” and “ice”. The three main criteria when choosing product and make in buying bottled drinking water is the product’s origin, its quality (including taste, purity and constituents) and its brand. Furthermore, price is important for the choice of the potential consumers. The concept of selling bottled drinking water extracted from Greenland inland ice is positively received among experts as well as potential consumers. More than 80 % of the interviewed consumers find the concept appealing. Experts and consumers state that one of the reasons why they assess the product positively is that they combine the product with purity. Based on the product description, the consumers on the two markets assess bottled drinking water from Greenland to be a premium product. On both markets around half of the respondents assess the product to be a premium product based on the product description (45 % in Los Angeles and 54 % in Tokyo). In Los Angeles a similar share assess the product to be a super premium product, whereas the share in Tokyo is significantly smaller. Based on the product description, only 2.4 % assess the product to be a super premium product. Like the experts, a large part of the potential consumers in Los Angeles expect a price between 2$ and 3$. A large part of the potential consumers in Tokyo expect a price between 120 Yen and 200 Yen, corresponding to between 1$ and 1.8$. As part of the market survey a number of CVP’s (consumer value propositions) and a number of sales slogans have been set up. The preferred CVP’s among the potential consumers contain words such as pure and original on both markets. The most preferred sales slogan on both markets is Greenland Water – the purest on Earth. Apart from that the sales slogans that are assessed to be best vary much between the two markets. CVP’s as well as sales slogans have a relatively low score on a scale from 1 to 10. The knowledge acquired through the market survey has formed the basis of a SWOT analysis which has been used to identify future opportunities and applicable strategies for the concept. Based on that a number of recommendations have been made for future producers of the product. These recommendations concern product development, marketing and economy.

The following specific recommendations have been made:

Product development

• Establish contact with distributors of exclusive food products and listen to their advice and guidance
• Define a more specific product –with or without additives, one or more types, etc.?
• Differentiate the product/product from other brands
• The product has properties such as age or origin that can differentiate it from other products on the market, ensuring a specific product certification should be considered
• Develop an attractive bottle
• Develop an attractive label
• Focus on a product/products in a relatively high price range
• Consumer trends in relation to sustainability should be considered in developing certification and production plans, transport and packing methods Marketing
• Establish contact with distributors of exclusive food products and listen to their advice and guidance
• Further develop and test CVP’s and sales slogans
• Establish contact with local restaurants, cafés and shops with a view to achieving ”acceptance” of the product
• Work on creating a strong and lasting brand
• Use ”Greenland”, purity and conditions that characterise Greenland as a marketing platform
• Tell the good story in the marketing
• Differentiate the marketing/branding strategy between different primary markets
• Use focus groups or the like to test branding, means of communication, packing, etc. in due time before launching the product economy
• Examine alternative means of transport and bottling
• Examine the possibilities of using surplus capacity in connection with transport
• Focus on a product/products in a relatively high price range
• Make an overall economic calculation in connection with the considerations about the choice of material for the bottle, comparing additional costs and expected additional sales