Dan Osiac Erasmus Student DHBW

Karlsruhe

Personal Skills in International

Marketing

Borsec was founded in 1806, so it has 206 years of experience. It is a mineral water from a
natural spring from Borsec depression, Harghita County, in the heartland of The Carpathian
Mountains, Romania. Their chemical composition is almost similar and also stable. In terms of
flow and quality, the most important springs are spring no. 1 and spring no.2 for the natural
sparkling mineral water and the source called 7 springs for the natural still mineral water.
Market Analyze
Report Buyer, the online destination for business intelligence for major industry sectors, has
added a new report which offers an in-depth outlook for the food and drink market in Germany.
The report "Germany Food and Drink Report Q4 2008" says that the soft drinks market in
Germany has experienced a slow growth in the last five years. The market is dominated by
multinationals including The Coca-Cola Company and PepsiCo, but all at the mercy of discount
retailers, which account for the bulk of soft drinks sold in the country.
Two sectors which are recording strong growth are bottled water and RTD tea and coffee.
Between 2002 and 2006 sales of bottled water in volume terms increased by 17%, representing a
compound annual growth rate of 4%. Over the same period sales of RTD tea and coffee in
volume terms increased by 28%, representing a compound annual growth rate of 6.4%.

Dan Osiac Erasmus Student DHBW

Karlsruhe

Both of these sectors have benefited from the stagnation in the carbonated soft drinks sector and
the perceived health benefits of drinking water and tea. The report expects this growth to
continue, with bottled water sales in volume terms expected to increase by 9% over the
five years to 2012 and RTD tea and coffee volume sales expected to increase by 14%
over the same period.
Borsec mineral water has a pleasant, thirst quenching taste. The large amount of
dissolved carbon dioxide generates hyperemia of the gastric mucous membrane,
activates muriatic acid secretion, increases appetite, encourages digestion and stimulates
hearts contraction, acting reflexively, on the vasomotor centers. It activates secretion of
the pancreas and kidneys, performing a diuretic action, stimulates the peristalsis, and the
gastric motility, activates gastric secretion, encouraging and assuring a normal function
of these organs. It neutralizes acidity in case of hyper secretion. It provides a beneficial
influence on digestion and nutritive exchanges. In case of hyper secretion, suppresses, by
their action, the gastric secretion, and in case of hypo secretion, caused by the imbalance
of the sodium amount in the body, on the contrary, activates gastric secretion. It exerts a
beneficial effect in urinary tract disorders and particularly on uric diathesis, by
dissolving the sand and uric acid and oxalates concretions.

Dan Osiac Erasmus Student DHBW

Karlsruhe

It stimulates diuresis, decreases urinary acidity and enhances blood PH. Beside a large
mechanical rinsing of the urinary tract, it enhances the uric acid solubility. They have
beneficial effect also on chronic cystitis, pyelitis and urethritis.
Regarding the internal treatment, Borsec springs are indicated in the following diseases:
-digestive tract and annexes glands diseases: hypo or normal acid chronic gastritis,
dyspepsia, mild enteritis, enterocolitis and fermentation colitis.
-posthepatic chronic hepatitis, biliary tract disorders, sequelae resulting from biliary tract
surgical procedures.
-nutrition diseases: type 2 compensated and balanced diabetes, gout and uric diathesis.
-endocrine diseases: mild hyperthyroidism.
-kidney diseases and urinary tract disorders: chronic nephritis, without renal
insufficiency, pyelitis, pyelonephritis, chronic cystitis, acid urinary lithiasis, sequelae
resulting from urinary tract surgical procedures.

Objectives:
Following are the objectives of Borsec company:

To earn a reputation for being an innovative, trend setting brand.

To be positioned as a lifestyle oriented, vibrant and contemporary product.

Build strong relationships with suppliers to secure a preferential supply of the

best quality products.

Insisting on customer - increasing customer base.

Gain the 10% share in the market

Dan Osiac Erasmus Student DHBW

Karlsruhe

Establish the position of market leader in 5 years

Provide the pure mineral water.

Target Market:
The most important decision about the product will decide what people we want to
attract, i.e. our target audience. The product has equal benefit for everybody. Well have to focus
on the all group of ages. Everything about the product is designed to bring those people to our
site. The reason of choosing full market coverage is to be a market leader in future. The lifestyle
of our target audience is different because they belong to different age groups. They are
adaptable to change and like change in their lives. The Mineral Water completes the both
objectives. They also influence the decision making of their parents to buy the product.

Market Trends
Market trend is headed toward a more sophisticated and aware customer. The
preference for high-quality and low product is increasing as customers are learning to
appreciate the qualitative differences.

Swot Analyses:
Strengths:

providing high quality Mineral Water

the price per quality is very attractive

effective advertising plan

Weakness:

Dan Osiac Erasmus Student DHBW

Karlsruhe

weak financial position

new brand in the market

Opportunities:

low and a bit high income group

strong distribution channel of competitors

strong positioning of competitors

Threats:

Competitors:
Apollinaris
Aqua Luna
Cave H2O
Gerolsteiner
Luisen

Product Offering
The company offer top quality, healthy and lower price drinking water Borsec to
German customers.

Pricing Strategies:
Every marketing task including pricing should be directed towards a goal, management should
decide on its pricing objective before determining the price itself. The pricing objectives are as
follows:
Profit oriented:

To achieve a target return

Dan Osiac Erasmus Student DHBW

Karlsruhe

To maximize profit

Sales oriented:

To increase sale volume

To maintain or increase market share

Penetration Pricing:
The Company is currently relying on market penetration pricing e.g. Lower price as compared to
its competitors. This strategy also works well to attract those classes that relate lower prices with
higher quality. Thus, in somewhat manner the company has tried to become distinctive.
Distribution Channel:
The company's distribution channel is not very difficult because of the nature of the product. A
Romanian distributor will be used in this case because of the following arguments:
-

Price cheaper than a German distributor

Location
Connections

Distribution level:
Producer

Distributor

Retailer

Consumer

The level of distribution which we are using here is two levels of distribution we have our own
distributors which bring our product towards retailers to consumer. Our product is distributed for
sale through all the major growing stores, departmental stores and even small retail outlets. The
reason for adopting all the channels is because of the nature of the product.
Advertising & Promotion:
Several different methods would be used for the advertising effort e.g.

Special magazines

Restaurants, Cafes

Dan Osiac Erasmus Student DHBW

Karlsruhe

Advertising hoardings billboards

Top management teams

Sport figures

Fitness Gyms

Bottling process and Labeling

Bottling industries worked continuously from 1806 to the present, with brief slump during the
two world wars. The tradition was continued by the "Queen of Mineral Waters Borsec SA" and
currently Romaqua Group S.A. - Borsec. Meanwhile bottling technology has been modernized,
putting into operation efficient bottling plants.
Since 1998, Queen of Mineral Waters Borsec SA associated with Comchim S.A. - Bucharest by
working two full production lines PET bottling. The two lines consist of equipment for injection
and blow molding for PET, produced by the German company Krupp Corpoplast and bottled in
PET bottles produced by Italian company Sasib Beverage.
Currently they were commissioned two new production new capabilities, and third complete line
of bottling in PET bottles, PET injection line consists of (production Netstal - Switzerland) and
blowing PET bottling line (both production Krones - Germany). The modernization of
production capacity and to broaden the product range will continue through commissioning at
the end of the first complete line of bottling in PET bottles of non-sparkling natural mineral
water.
Passion for continuous upgrading and increasing the level of quality has made Romaqua Inc. be
the first bottler of mineral water from Romania who has received international certification for
quality management - ISO 9001, awarded by TUV - Germany.
ROMAQUA GROUP SA bottling company, started production of PET and bottles and selling of
natural mineral water, carbonated natural "BORSEC" bottled in bottles of 2 l, 1.5 l and 0.5 l.
In Germany, Borsec will be sold in two types of bottles:

Dan Osiac Erasmus Student DHBW

Karlsruhe

0.75 litter glass bottle still

0.25 litter glass bottle still

1 litter glass bottle mineral

At the same time, the company ROMAQUA GROUP SA is the first bottler who was awarded
the certificate for quality management in accordance with international standard ISO 9001 by
TUV CERT prestigious Germany
Company's ability to export at least 50 million bottles / year.
Labelling
Standard set of labels (front, back and neck) are printed in the language requested, usually the
front and the collar is in English, and the back to request the desired language and the name of
the importer
Printed image is part of our registered trademark and cannot be changed.

Budgeting:
Year
1
2
3
4

Expen
se
25000
0
75000
0
12500
00
17500

Dan Osiac Erasmus Student DHBW

Karlsruhe

5
Year
1
2
3
4
5

00
25000
00
Sales
1,000,0
00
3,000,0
00
5,000,0
00
7,000,0
00
10,000,
000