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Bottled water industry trends
Studies on the bottled water industry
Bottled water industry issues
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According to the “Competition in the Bottled Water Industry in 2006 Case,” bottled water industry became the one of the world’s most attractive beverage categories, as more and more people began to focus on health and fitness. Consumers start realizing the need of proper hydration, and they began purchasing bottled water instead of drinking tap water, because they were worried about safety of tap water, which tasted like chemicals. Actually, tap water contained chemicals, such as chlorine and fluoride, which are harmful for human body; however, this problem was solved when the bottled water was brought to the market. Due to bottled water’s convenience, purity, and portability, and safety, bottled water industry began to rise rapidly. During …show more content…
In short, the industry extremely focused on preventing and testing the presence of bacteria. Therefore, bottled water often represented “somewhat of a novelty or prestige product” in the United States, and it gave a perception to their consumers that they need to purchase bottled water in order to stay young and healthy. Because the bottled water industry seemed very attractive and profitable, as mentioned above, there were many competitors, too. Total nine bottled water producers were mentioned in the case study, but four key major rivals were Coca-Cola, PepsiCo, Nestle, and Groupe Danone. However, there was no one buyer that accounts for a significant fraction of overall market demand. Distribution varied depending on the producer, but most distribution channels included food stores, supercenters, supermarkets, discount stores, and wholesale clubs. Because bottled water had an easy availability, consumers in the United States were able to find it anywhere the food was also …show more content…
Mainly, it is price-based competition. The switching costs and product differentiation remains low, which increases the competition. The article mentioned that “10 to 25 percent of consumers looking for a specific brand and an additional two-thirds considering only a few brands acceptable,” which means that the brand of bottled water is not that important as long as the price remains low. Therefore, efficient distribution systems are needed in order to survive in this industry. For example, a company has to “maximize the number of deliveries per driver since distribution included high fixed costs for warehouses, trucks, handheld inventory tracking devices, and labor.” If a company has efficient distribution system, then it will possibly lower the selling price and keep the
Johnson tries to convince that although bottled water is convenient to use and sometimes even becomes a life savior, it should be avoided at any cost and tap water should only be preferred. This claim allows The Shorthorn readers to be sure that the author is taking account of both positives as well as negatives of bottled water but includes comparatively lots of negative factors to persuade readers that bottled water should be avoided. She supports this claim by reasons such as bottled water has a negative impact on human health, plastic has a negative impact on the environment, and the plastic bottle is just a waste of money and energy. She also supports her claim of convenience of bottled water by talking about reusable water bottles ' convenience. These reasons are important to those readers who prefer bottled water and are not aware of its negative
Pacific Institute (2008). Bottled Water and Energy: A Fact Sheet. Retrieved July 31, 2008, Web site: http://www.pacinst.org/topics/water_and_sustainability/bottled_water/bottled_water_and_energy.html
Bottle water is recently considered commodity with marketing strategies used by bottle water manufactures to amplify consumer fear of tap water purify and to make bottle water meaningful on a personal, local and global scale (Connel 2006, 2007). However, Fiji water has made this meaning by using its brand with exclusive lifestyle that include environmental actions, social justice and progressive politics, by tracing Fiji water from its source in Yaqara Valley to the shelve over the world groceries stores or restaurants for customers consumption as “The Taste of Paradise, from the islands of Fiji, delivered to your doorstep” as a Fiji water has launched in its slogan.
This would show how bottled water is being falsely advertised and is actually harmful for the body since the Food and Drug Administration (FDA) “doesn’t keep track of companies that produce bottled water and doesn’t require [them] to report positive tests for contaminants” (Zhang, 2009, para. 1). The FDA, which is the only organization that regulates the bottle water should put in effect stronger regulations in order to have more control over the water that is being sold to people.
In the first article "The Curse of Water Bottles" the author is obviously trying to convince people to stop wasting bottles and recycle. For example "There are solutions like using your own personal water bottle and refilling it" and that would save from buying water bottles, and reduce some of the waste. It also states "Some cities are fining homeowners and businesses for not recycling" so that means even cities are trying to get people to stop wasting water bottles. Companies and/or states have tried putting rewards on the bottles if you return them, as stated "Some states have tried to put a nickel return fee on water bottles like those on soda and other beverages" but it still doesn't work out for everyone, because "grocery
The water bottle industry has vey rapidly become one of the most profitable drink industries in the nation. For this reason, much discussion has ensued as far as the need and effectiveness of these major corporations, the majority of articles agreeing with the idea that these corporations are extremely manipulative in seeking profit. In reading Peter Gleick's "Selling Bottled Water: The Modern Medicine Show" and Cynthia Barnett's "Business in a Bottle" each author focuses on a different problem within the spectrum of this 'water bottle crises'. While Gleick argues that both advertisers and the uninformed public factor into the perception that bottled water is superior than tap water, Barnett's claim differs in that the blame is placed directly
Analysis of the carbonated soft drink (CSD) industry shows that there are 2 important players i.e. Concentrate Producers and Bottlers. Focusing on the downstream of the supply chain it is to be pointed out that concentrate producers incure relatively low fixed costs with respect to production plant, staff, equipment and R&D as the concentrate is produced of a more than 100 years old formula and relatively cheap raw material (e.g. caffeine). Concentrate is shipped to bottlers which incure relatively high fixed cost with respect to plant, equipment and staff and which add carbonated water and high fructose corn syrup to the concentrate, bottle or can, package and ship it to the respective retailer. Besides that CDS hold a big stake in the direct delivery of concentrate to diverse fountain accounts like McDonalds, Burger King etc.
I chose to do my research about an ongoing issue with drinkable water. To narrow it down, I decided to concentrate on bottled water. This topic interests me personally, and I believe might be interesting for my classmates, as the issue affects everyone. Maybe if we realized the problems it causes, we would try drinking from a glass at home or carrying water in a refillable steel container instead of plastic. I hope that my research will change the perspective of the reader about such a convenient thing – bottled water.
Cola Wars Environmental Analysis 1. Introduction External environmental analysis of US carbonated soft drink (CSD) industry allows concluding that declining CSD sales call for changes in industry operations whereby market players can benefit from the fundamental shift in the industry development and maintain its leadership positions in beverage market. Analyses of macrolevel, industry, and competitive environments suggest that expansion, strong brand recognition, and changes in value chain will be key success factors in the future industry development. 2. What is the difference between a.. External environmental analysis a. Macrolevel environment (PESTEL analysis) i. Political New federal nutrition guidelines identified CSD as the largest source of obesity-causing sugars in the American diet.
For example, the United States’ capita consumption of bottled water lagged those of soft drinks by more than a 2:1 margin. In terms of bottle water, the majority of sales volume is based on single-serving PET containers rather than 5 or 1-2.5 gallon high density polyethylene containers used for home or office use. The single PET container has been satisfied by the customers because it is convenient and portable. It can be purchased from a convenience store. Number of rival There were fierce competitions among the producers that had scale and scope of operations which were similar to each other.
Evian’s U.S. market share has continually decreased since the emergence of the cola giants’ bottled water brands because Evian failed to foresee competition from the likes of Coca-Cola in the bottled industry. Evian also failed to realize that selling bottled water in the U.S. is completely different from selling bottled water in Europe. In Europe, consumers are more knowledgeable of the differences between purified and glacial spring water, prefer the glacial spring water and are willing to pay more for glacial spring water brands like Evian. In the U.S. consumers are indifferent to the types of bottled water and make purchase decisions based solely on price. Evian ‘s average cost per case is about 80% higher than that of Aquafina and Dasani because of the additional handling and transportation costs of bottling water from Evian’s French/Swiss Alps glacier source. Because purified water is cheaper than imported glacial spring water, consumers in the U.S. prefer purified water brands like Aquafina and Dasani.
This exploration is about the optimization of a water bottle, that is, to find out the volume of water contained in a bottle and the surface area of plastic of the bottle and try to reduce the plastic without affecting the volume. Finally, I will evolve why companies don't just use the bottle design with the most volume of water and the least amount of plastic if they are concerned with the environment and want to save themselves some money.
From a business point of view, it seems so ignorantly deceptive, yet it is absolutely genius. With a little marketing, bottled water has become a huge success. However, it is killing the environment and the water is usually comparable to tap water regardless. The “The Story of Bottled Water” is a very well-made short film that takes viewers into the dark world of manufactured demand.
In India, the tradition of serving the packaged drinking water goes back to 1965. There were two prominent categories of bottled water. They were Packaged Natural Mineral water and Packaged Drinking Water. This market of bottled water has emerged as rapidly growing and competitive markets throughout the world. The major target segments for this industry are touring and travelling markets. Apart from it, they also target higher income bracket group in the urban areas. One of the various reasons that lead to the growth of this industry is shortage of pure and safe drinking water in the cities. In industrial countries, consumers prefer bottled water for taste and convenience while in developing countries, unsafe water supply
Strom, Stephanie. "Bottled Water Sales Rising as Soda Ebbs." New York Times 25 Oct. 2013. Web. 8 Mar. 2014. .