Market Analysis of Mineral Water for the Romanian Market

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Academia de Studii Economice – Facultatea de Relatii Economice Internationale

Marketing Project:

Market Analysis of Mineral Water

for the Romanian Market

Supervising professor:

Students: Cuzdrioreanu Costin, Group 937

              Sterian Alexandru, Group 937

- BUCHAREST 2011 -

TABLE OF CONTENT


Chapter 1. 

Overview of the Romanian bottled mineral water market

1.1 Introduction

Romania is among the richest countries in hydro resources, owning over 60% of  Europe's mineral water resources.

Mineral water springs in Romania are characterized by outstanding debits and superior quality.

Most of the exploitable sources are concentrated in the Carpathian Mountains, especially the Orientals and Meridians as can be observed in the image below.

Fig 1. Map of Hydro Mineral Springs in Romania

One of the more remarkable characteristics of Romanian springs is the curative properties of the waters they produce. These properties have been attested by medical authorities, and are used to treat many health disorders such as digestive ailments, renal, kidney and vascular dysfunctions.

1.2 Market overview

Having made these assertions as to the quality and abundance of the water that is available for exploitation, one could make the presumption that the Romanian market for bottled mineral water would be a well developed one, which is not entirely accurate.

In the following chapters we will present  information concerning the mineral water market which will provide an accurate image.


Chapter 2.

Market area

2.1 Geographical territory inside which the product is sold

For the purpose of this study the geographical region corresponding to the geopolitical boundaries of Romania will be taken into consideration.

2.1.1. Characteristics of the geographical territory

Romania is currently a developing country, with an urbanization rate of 54% , and an average net income of 1361 RON, it is therefore obvious that any market for nonessential goods would be hindered by low income and low product awareness.

Mineral water is sold in a higher incidence in the urban areas due to larger concentration of individuals with higher living standards and who are more aware of the health benefits of consuming bottled water.

Consumption in rural areas is also limited by the existence of alternative sources of drinking water near their household.

From the graphs presented by the National Mineral Water Company (SNAM) in Romania, there is an increase in consumption and production since 1996.

Households whose consumption of bottled water is high are located in Bucharest and large cities. In Romania, Bucharest’s recorded consumption covers 17% of the total consumption at the country level. Regarding the influence of income, 38% of the volume of water is consumed by households with incomes of more than 2,400 lei well above the country average.

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2.2. Sales structure of the product

Regardless of geographical region mineral water can be purchased in the form of bottled liquid, in various quantities. There are some exceptions in the areas surrounding rich springs such as Bucovina, Borsec, Vatra Dornei etc…

All forms of retailing apply for the sale of this product, ranging from wholesale to boutiques. Standard sales dynamics apply, the higher the quantity sold the lower the price.

Mineral water can be found in carbonated and noncarbonated form.

Statistics show that consumption of carbonated bottled mineral water declined in favour of still mineral water. A Daedalus ...

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