Mahalo: A Case Analysis

Background
One of the first brands of bottled water to ever hit the food and drink
industry was called 'Mahalo' which translates into 'Thank You' in Hawaiian.
Mahalo was founded by a Japanese man who came up with the idea to
extract water from beneath the ocean. The water itself is said to be 1,200 2,000 years old, and comes from 3,000 feet below the surface of the Pacific
Ocean. It is completely safe from chemicals, and human pollutants such as
industry, farming, and human waste.
The company Koyo USA has developed new technology to gently filter
the excess salt from the sea water. This process happens at the source.
When Mahalo was first distributed, it was described as 'Liquid gold' It is
something so pure and full of minerals, the public were led to believe that
was health advancing. Also, due to the age of the water it was described as
'Older than Jesus' which links back to purity and health.
Since the release of Mahalo, bottled water has become a massive
thing. The two main competitions are Danone and Nestle, both with a very
different on-look of manufacturing bottled water. Alongside them is Perrier, a
french brand.
Statement of the Problem
What strategic marketing campaigns can MaHalo implement to successfully
penetrate the Philippine market?
Objectives
1. To develop marketing initiatives for MaHalo brand to successfully
penetrate Philippine market
2. To devise a plan to which MaHalo can influence market to buy
expensive water
3. To establish brand and product equity in the Philippine market
SWOT ANALYSIS
Strengths
Water as basic commodity
Pioneer in bottled water
Most nutritious beverage on earth
Deep seawater contains traces of minerals like phosphorus and
calcium that surface waters or usual type of water lacks
Perceived health benefits
Weaknesses
Expensive
Product exposure is very limited
Sporadic advertising campaigns
Opportunities
ECONOMIC
Continuous growth of population
Potential global distribution
Threats
POLITICAL-SOCIAL
Upcoming elections to hinder approval from FDA
ECONOMIC
New entrants in the bottled water industry
Theoretical Framework
AIDA model
The AIDA Model identifies cognitive stages an individual goes through

during the buying process for a product or service. It's a purchasing funnel
where buyers go to and fro at each stage, to support them in making the
final purchase. AIDA model is used for this case analysis to understand the
target market of MaHalo to come up with effective and strategic campaigns

to successfully penetrate the Philippine market.
First, how could MaHalo create awareness in the Philippines?
Expanding rapidly in mainland America market, the brand can leverage on
that as the Philippines is a Westernized culture, we love everything
Americans and/or Anglos introduced to us. By this way we can devise a plan
on how to create interest in the benefits of MaHalo being an introductory
brand in the country? How can it gain and sufficient interest to encourage
the buyer to start looking or even considering an expensive bottle of water to
share their wallet spending? Then we create desire to our perceive market?
The product desalinated water pumped from 2,000 feet below the surface of
the Pacific Ocean is a unique attribute for the brand to create desire and
interest.
Segment, Target and Positioning (STP)
Target
Professionals
Business owners
Trendy young people
Segment
Belongs to the A, B, and Upper C classes, with an average annual income of
more than P800,000, these customers spend majority on food, utilities,
transportation, and can allot also to leisure and lifestyle expenses.
Consumers maintaining a luxurious image.
Positioning
Purely the best water in the world
Alternative Courses of Action
1. Launch an introductory campaign highlighting the brand
image Liquid Gold
The uniqueness of the brand image is one key factor to highlight on the
introduction of the brand to the Philippine market. The main message
could leverage that the brand is something so pure and full of
minerals, the public will be led to believe that was health advancing.
The campaign could also highlight the age of the water it was
described as 'Older than Jesus' which links back to purity and health.
2. Imprint the image of exclusiveness and luxury lifestyle as
brand message
Create a series of campaigns highlighting the brands image of

exclusiveness and luxury lifestyle. We can shift trends that MaHalo
consumption is towards gastronomy and quality, and the rise of desire
for every day luxury experiences.
3. Create partnership with high-end hotels and bars as in-house
bevarage
Leverage on the growing desire of the market to always want to feel
belongingness, MaHalo can partner with high-end hotel and resto-bars
as its exclusive water beverage. The brand can create a wider but
niche segment of the people who can afford to shell out money for a
half-liter bottle of water.
Decision Criteria
Decision
Criteria
Cost
Market
Strategy
Product
Positioning
Sales
Brand Image
TOTAL
ACA #1
ACA #2
ACA #3
Rating
Rating
Rating
25%
15%
20%
20%
100
%
5
4
5
4
5
4
4.2
4.2
4.2
Weig
ht
20%
Recommendation
After careful evaluation and assessment, all three Alternative courses
of action are worthy of being considered to be the proposed action to resolve
the problem at hand. Based from the results of the assessment in reference
to the decision criteria, all three recommendations got a score of 4.2.
However, since each suggested resolution comes with a unique degree of
feasibility and execution, the recommendations shall be plotted in different
timeframes according to the level of difficulty of implementing them.
Action Plan
MaHalo strategic plan to successfully penetrate the Philippine market is
in three phases. First is to launch an introductory campaign. This will be done
through press release and events targeted exclusively to high-end market.
Healthy benefits and uniqueness of the brand will be discussed and
highlighted. After the introduction of MaHalo the market, a campaign
leveraging on brand message is next. The brand can pay endorser but
wisely chosen as an elite member of the society. Message of luxuriousness
and exclusive lifestyle will be highlighted as to leverage on trends that
MaHalo consumption is towards gastronomy and quality, and the rise of
desire for every day luxury experiences. After successfully launching and
promoting the brand image, MaHalo will start partnering with exclusive
hotels as its exclusive water beverage fully creating a segment of market
that will establish the brand and product equity of MaHalo in the Philippine
market.
F
J
A
S
Ja e
M A M
Ju u u
e
O N
D
n b ar pr ay n l
g
p
ct ov ec
Launch an introductory campaign highlighting the brand image
Liquid Gold
Research and develop
quality-oriented
campaigns
Planning
Development and
production new campaign
Launch of new campaign
Imprint the image of exclusiveness and luxury lifestyle as brand
message
Research and develop
quality-oriented
campaigns
Planning
Development and
production secondary
campaign
Launch
Create partnership with high-end hotels and bars as in-house
bevarage
Research for suitable
hotels and resto-bar
Proposals and drafting of
contracts
Sign agreement and
media coverage
Launch in hotels, bars
(per season)

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Background

Perceived health benefits

The AIDA Model identifies cognitive stages an individual goes through

target market of MaHalo to come up with effective and strategic campaigns

Create a series of campaigns highlighting the brands image of

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