Blue Ocean Strategy, Sales, Marketing & Productivity

Mineral water industry in Asia had been a common and homogeneous industry. There are lots of competitors who use similar approach in promoting their products to the market. Further more, same target segment had made this industry competitive and become very crowded, therefore price competition became very fierce and not avoidable.

Spritzer, one of the innovative companies had been in material industry for the last 30 years. The company started its manufacturing in Perak, Malaysia and had been producing material water for customers (all segments), companies or corporate clients and also tourists.

In view of the fierce competition from competitors as well as the demand for material water is increasing, Spritzer have started to look into possible to offer some unique products to the clients and at the same time avoid competition from the market. With this, the company start to consider invest heavily in developing products for other market segment such as children, those from medium level market and also those from low level market. Today, Spritzer have products for different market segments which uses brand name such as CACTUS (medium level market) and DESA (Low level Market).

Blue Ocean Strategy have suggested the four actions framework for companies who are intended to come out from red ocean, Spritzer have created a Blue Ocean Business which have made competition irrelevant by offering various products that preferred by customers. We can summaries the four actions framework as follows:

Eliminate:

Ø Price Competition

Reduce:

Ø Focus on functionality – contents of material water

Ø Standard packing – standard bottle design

Create:

Ø Attractive packaging design targeted at children

Ø Material water with gas

Ø Specialty design for cover and bottle cap

Ø Packaging which focus on convenient to bring around

Ø Allow visitors to visit factory and assembly line

Raise

Ø Fulfill needs from various level of consumers

Ø Develop new products

Ø Quality of water

Ø Number of design

Ø Perception and understanding of water by consumers

The strategy canvas can be outlined as the followings

Strategy canvas above shown that Spritzer is able to fulfil the basic concept of the Blue Ocean Strategy value curve – Focus & Divergence. Such, Spritzer is strong and robust in their own industry.

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Filed under: Blue Ocean Strategy, Blue Ocean Strategy Examples, Competition, Management, Strategic Management