Al Ain Mineral Water - Company Structure and Its Members

Al Ain Mineral Water

Company Structure and its Members

Al Ain Mineral Water Company (P.J.S.C.) was established as an initiative of His Highness the Late Sheikh Zayed bin Sultan Al Nahyan. The manufacturing facility was opened on 5th August 1990 by Sheikh Saeed bin Tahnoon and is situated on Khattam Al Shiklah Road in Al Ain – The Garden City of the UAE. The company produces one of the leading bottled water brands in the UAE. The company has a strong heritage and tradition in the Emirate of Abu Dhabi where they are the number one brand choice amongst consumers. Al Ain Water Company (PJSC) is wholly owned by AGTHIA Group (PJSC) which is a listed company on the Abu Dhabi Securities Market (ADX).

Agthia is a leading Abu Dhabi based food and beverages group established in 2004. The Company is listed on the Abu Dhabi Securities Exchange (ADX) and has the symbol "Agthia". 51 percent of the Company's shares are held by General Holding Corporation, an Abu Dhabi Government entity, with the balance held by individual and institutional investors. The Company's assets are in the UAE and Egypt, and its products are present in the UAE, Oman, Bahrain, Qatar, Kuwait and Saudi Arabia markets. Agthia employs nearly 1,600 people across various food and beverage segments in UAE and Egypt: Water & Beverages includes the production and distribution of bottled water and beverages; Flour & Animal Feed includes the production and distribution of flour and animal feed; Processed Fruits & Vegetables includes the processing and distribution of tomato paste and frozen vegetable products. In the UAE, Agthia is organizationally structured into two divisions: Agri Business Division and Consumer Business Division, where offices, warehouses and factories are located in Abu Dhabi, Al Ain, Dubai, and Sharjah. In Egypt, Agthia factory and offices are located in Sadat City.

For the purpose of this assignment we will focus on the Al Ain Mineral Water division and the core marketing channels surrounding the water distribution. We will discuss the allocation of channel functions and flows and their ability to meet the consumer demands. We will also present the gap analysis and suggest our recommendations to improve the channel design and how the company can achieve a bigger market share locally and internationally.

Marketing Channels

Manufacturing, delivering, selling and gaining market share of commonly sold products require involvement of several independent organizations in the process. Majority of these products can be summed under the FMCG categories as well as pharmaceutical products and apparels to name a few. IT is therefore important to create channels in the process where these interdependent organizations function in a format to ensure a smooth flow of the product from the factory lines to the actual