How do you compete in the premium bottled-water market?

By next year, India’s premium bottled water market is estimated to reach $300 million. (Representative Image)

When Coca-Cola faced stagnancy in growth for carbonated drinks, the then CEO urged his senior management team to think more creatively and asked them to find out what portion of the 129 ounces of fluid a human body needs daily could be served by the company. That was the starting point of its diversification into water, energy drinks and the lot.

By next year, India’s premium bottled water market is estimated to reach $300 million. Small and medium enterprises have water-bottling plants and some buy local brands that compete either on price or huge margins through wholesalers and distributors. Indeed, it is a difficult task to market a premium bottled water brand. It requires a well-thought-out strategy to differentiate your product in a highly competitive market.

Here are some best practices to consider if you plan to enter the market for higher-end bottled water.

Product quality and differentiation: Ensure that the water source is pristine and the quality is exceptional. Premium bottled water should stand out for its taste and purity. Remember Evian? Even Tata’s Himalayan connoted the same purity and taste. Highlight what makes your water unique – whether it's the source, the purification process, the mineral content, or packaging.

Branding and positioning: Develop a strong brand identity that reflects the premium nature of your water. Include a compelling brand, logo, and packaging design. Position the brand as a lifestyle choice, emphasising health, luxury, class, sustainability and environmental consciousness.

Target audience: Identify and understand your target audience. Are you catering to health-conscious consumers, fitness enthusiasts, luxury seekers, or environmentally conscious individuals? Tailor your marketing messages and channels to resonate with your specific audience. Many fine dining restaurants sport some high-end bottled water brand priced at Rs 150+ for a litre.

Content marketing: Create engaging and informative content about the benefits of premium bottled water – hydration and health, among other things. Include your brand story wherever possible. Share this content through blog posts, social media, and email marketing. Consider influencer partnerships with health and wellness experts to endorse your product.

Packaging and design: Invest in high-quality, eco-friendly packaging. Glass bottles with unique shapes or labels made from sustainable materials can set your brand apart. Collection of bottles for reuse will be a challenge in a country like India. Ensure that the packaging communicates your brand's premium quality and values clearly.

Pricing strategy: Set a competitive but premium price point. Make sure it aligns with the perceived value of your product. Think creatively in this regard. Consider offering various package sizes to cater to different consumer needs.

Distribution channels: Secure distribution agreements with high-end restaurants, hotels, gyms, and health food stores. Explore online sales through your website and major e-commerce platforms. Can there be a direct-to-home model? Can there be refills? In what way can you disrupt the current models?

Sustainability and social responsibility: Showcase your commitment to environmental sustainability. Use eco-friendly packaging, support conservation efforts, and communicate your water's low-carbon footprint. Tie up with charitable organisations and donate a portion of your sales to water-related causes.

Sampling and events: Offer product samples at upmarket events, trade shows, and local events in posh residential areas. Host launch events or pop-up shops in trendy areas to generate buzz and engage with potential customers.

Social media and influencer marketing: Leverage social media platforms, especially Instagram and Pinterest, to showcase your premium water and engage with the audience. Consider collaborating with social media influencers and celebrities who align with your brand's image to reach a wider audience.

Customer engagement and loyalty: Create a loyalty programme or subscription service to encourage repeat purchases. Explore engaging with customers on social media by responding to their feedback, and addressing concerns promptly.

Analytics and optimisation: Use data analytics to track the effectiveness of your marketing campaigns and adjust the marketing mix appropriately. Monitor customer feedback and reviews to continually improve your product and customer experience.

Building a brand takes time and consistent effort. Be patient and persistent in your efforts, and continually listen to your customers to refine your strategy and offerings. With a strong focus on quality, branding, and customer engagement, your premium bottled water brand can carve out a successful niche in the market.

Marketing a high-end water brand in India requires a well-planned budget to effectively reach the target audience and establish the brand. The budget can vary, based on the brand's goals, market reach, and chosen marketing channels. The budget should align with your brand's positioning, target market, and revenue projections.

Ongoing marketing expenses for brand maintenance and growth should also be considered for future budgets. Conducting thorough market research and financial planning is essential to ensure the effective use of funds and a successful marketing campaign.