...Bottled Water Case #1. Some key economic characteristics of the bottled water industry include its attractiveness to the market. The expected growth rate continues to rise and that makes it an opportunity for those willing to break into the market. The population is a key economic factor because they are becoming more conscientious of drinking water that had been provided by the municipalities, there are also concerns for the amount of sugar in soft drinks, so these are some of the reasons they are turning towards the bottled water industry. Bottled water is a more convenient way to a healthy drink readily available and its popularity continues to grow around the globe. This industry has an economic growth rate predicted at annual rates of 20% or more, and this makes the industry profitability rates continue to grow in the billions. The bottled water industry is highly competitive and most of the top contenders are soft drink companies that got into the market when they started seeing a consumer changeover to bottled water. The gain shelf space at the grocery markets, the sellers of bottled water have to compete aggressively to offer the lowest prices to distributers. Supermarkets and discount outlets were able to force the industry to pay slotting fees while also forcing them to lower their prices. Some retailers were even willing to offer rebates for shelf space in convenience stores. #2 a. Suppliers—plastic bottle producers, water treatment facilities, spring...
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...Mark Hancock Environmental Economics Bottled Water Environmental and Economical Effects Introduction Since the early 1990’s American’s have been consuming large amounts of bottled water. Most American’s don’t realize the effects of the bottled water industry on the environment or on their wallet. Individuals believe that bottled water is more pure and of a higher quality than that of their conventional tap water. In reality this is false. We as a country are wasting money on bottled water and harming the environment in the process. Without a change of consumption habits our environment will see some dramatic changes. This is an important environmental and economical issue that will effect future generations as well as the current. Brief History Bottled water has become a part of many Americans life. Perrier started this trend with their introduction of bottled water in the early 1980’s. Ever since the early 1990’s when Coke and Pepsi got into the bottle water market because they saw their market share for soda declining Americans have been consuming bottled water at an alarming rate. These companies tried to glamorize their product saying it will make you skinny and healthy and associating it with big name celebrities and athletes. They stated that they were not in competition tap water because they provided a product that was portable, convenient and pure. In 2007 it was an 11.35 billion dollar business. The American people certainly bought into this...
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...The Bottled Water Industry Threat of entry of new competitors is low. Firstly, the competitors that currently exist are large, dominating companies who already own a huge market share of the industry. New entrants attempting to enter the market will have compete with established brands such as Coca-Cola, PepsiCo, and Nestle. These brands have decades of experience in the food & beverage industry, have developed brand recognition & loyalty and have achieved low-cost production and distribution capabilities that cannot be easily matched. Secondly, it is expensive to initially develop the infrastructure to produce the product. The case states that prices for bottle-filling lines range from $125,000 to over $100 million, not to mention the costs associated with “source certification, road grading, and installation of pumping equipment …” which require approximately $300,000 worth of investment. Threat of substitute products/services is high. Numerous bottled and non-bottled products that can easily substitute bottled water. The main factor that differentiates bottled water from other soft drinks is that it caters to a health-conscious market because it has no sugar and no calories. However, today, there are several healthy soft drinks that are ‘zero-sugar added’, ‘zero-calorie’ alternatives to water. Coke zero, crystal light powders, diet sodas, zero-calorie energy drinks, etc. are just some examples. Tap water is also a substitute product because many people simply trust the...
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...Introduction Water forms an essential part of every human being. After air, water is the most important necessity for life. Water plays a number of functions for the body. It serves as the body’s transportation system, it acts as a lubricant, it regulates the body temperature etc. The eulogy for water is an unending thing. In fact, more than 2/3rd of the human body is made of water. The importance of water for human body can be well accessed from the fact that if the amount of water is our body is reduced by just 1-2%, we feel very thirsty. If it’s reduced by 5%, our skin will shrink and we will have difficulty moving our muscles and if it’s reduced by 10%, we will die. Moreover with this commodity being a human necessity it makes best sense to do business in. As a normal human being requires on an average needs 2-3 litres of water everyday and world population is more than on (growing at 2-3% annually), the business opportunity is humongous and the potential is largely untapped. The bottled water industry is one of the most thriving sectors in Bangladesh. The market is growing at a whopping rate of about 55 per cent annually and is expected to cross Rs. 1000-crore mark within the next couple of years. There are close to 150 bottled water brands in Bangladesh. Nearly 80 per cent of these are local brands. Bottled water became a product in Dhaka during the 1920's and developed rapidly. Consumers in the West are quality conscious and display brand loyalty. Bangladesh consumers...
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...Case Study: Bottled Water Industry Team 3 James Barlow, Julianne Schneider, Robyn Sumner & Katie Austin GBA 490 Dr. Drnevich 26 March 2008 EXECUTIVE SUMMARY The strengths of The Coca-Cola Company’s Dasani brand include its availability and convenience, prominence of the parent company, geographic coverage, financial stability, assets, distribution channels, and image of social responsibility. Dasani’s availability and convenience stems from the fact that the brand is virtually in every supermarket, convenience store and vending machine. Consumers are bombarded with the brand, which makes it very recognizable and well known. Its recognition factor is partly due to the great success of its parent company, since The Coca-Cola Company is so well established and respected in the beverage industry. Another strength is Dasani’s geographic coverage. It is available in 200+ countries in localized flavors, which further extends the brands marketability. Dasani is obviously financially stable, as it is backed by one of the most successful beverage companies in the industry. Its financial stability allows for high cost advertising, marketing, and development. As part of the Coca-Cola family, Dasani reaps the benefits of readily available assets and distribution channels. Assets include water sources, processing systems, and bottling and manufacturing suppliers. Assets like bottling and manufacturing equipment can...
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...The Water Bottle Industry Markets Water is something that anyone around the world could get from the tap for free, but now it is all the rage for the beverage industry. Bottled water has become the industry's fastest growing segment, both in volume and profits. Due to the consumer's needs and wants for a healthier lifestyle, the beverage industry provides a necessary product to the consumers, which is bottled water. Water is essential and with the demand to participate in a healthy lifestyle, the water industry will be successfully profitable. The market size for this industry has been growing and will continue to grow in a rapid pace. Over the past ten years, bottled water has moved from being the preserve of a relatively small market into the U.S. mainstream, with sales of about $7.5 billion, and that's only for water in bottles of 1.5 liters or less (Durr). According to the International Bottle Water Association, Americans spend $5.6 billion in 2000 on bottled water. By 2005, Americans will consume 7.2 billion gallons of bottled water, up from about 5 billion gallons in 2000, the association reported. A factor that will continue to drive the bottled water market is foremost the desire to live a healthy lifestyle. Which leads to the concerns of contaminants found in the tap water. People will pay high prices for water, just to be ensured that it is safe to drink the water that they purchased. Drinking lots of water also prevents dehydration. According to the Bottled...
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...Australian Beverages Ltd-Pre-seen case study information A Introduction to Australian Beverages Ltd In 1937, Australian Beverages Ltd (ABL) commenced manufacturing soft drinks [non-alcoholic drinks rather than 'hard' drinks that contain alcohol]. During the 1970s and 1980s, the company expanded its beverage portfolio by entering into other non-alcoholic beverage categories, such as fruit- and milk- based drinks. In 2011, the company was Australia's largest supplier of non-alcoholic beverages. Tom Dwyer, the current Managing Director, has been with the company since 2008. He joined the company at a time when carbonated soft drinks (CSDs) growth was stagnating and shareholder confidence in the company was waning. Dwyer established a strategic planning team within the company to assess the current product portfolio and identify organic and acquisition growth opportunities. From this review the importance of operational excellence was identified and strong investment was made in world-class manufacturing facilities and systems. Process re-engineering was implemented to reduce the costs of manufacturing and time-to-market. Given the declining consumption of CSDs, Managing Director Tom Dwyer has sought to reduce ABL's reliance on them, focusing on growing new products and entering new non-alcoholic beverage categories since his appointment in 2008. Alongside significant investment in product development of other non-alcoholic beverages, several acquisitions have been made to...
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...Review on Myanmar Bottled Water Industry with Porter’s Five Forces Review on Myanmar Bottled Water Industry with Porter’s Five Forces Introduction Bottled drinking water used to be a prestige product till 1990s in Myanmar. Then, the use of bottled water has grown considerably since factories were first set up in the mid-1990s. According to Myanmar Food and Drug Administration (FDA), there are 657 bottled water factories in 2013 which were rose form 320 factories in 2008. Bottled water culture has penetrated even into rural areas of Myanmar where majority of people previously held the view that bottled water was a waste of money. It is due to increasing urbanization, limited time to boil tap water, increasing suppliers and better delivery, convenience and portability. Myanmar bottled drinking water industry is currently dominated by Alpine which has 65% market share, according to the company reports. Analysis with Porter’s Five Forces An industry's competitive dynamics and profitability can be deducted by analyzing with Porter's Five Forces. (1). Rivalry among existing competitors Even though, Alpine has dominated the market, competition among second-tier brands such as Oasis, PMG, KTM , ICE, Sampar Oo, Max'2'0, Imperial Jade, KA is high. As bottled water has become a commodity-like product, customer switching...
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...Porters Five Forces: Global Beverage Industry 5 2.3 Economic 7 2.4 Social 7 2.5 Technology 7 2.6 Natural 8 3.0 SWOT Analysis 9 4.0 Alternatives 9 4.1 Alternative #1: Maintain business model 9 4.2 Alternative #2: Change business model 10 4.3 Alternative #3: Combination of new product and sustainable conduct 11 5.0 Evaluation 12 5.1 Analysis of the Alternatives 12 5.1.0 Alternative 1 12 5.1.1 Alternative 2 13 5.1.2 Alternative 3 13 6.0 Recommendations 13 7.0 Action Plan 14 8.0 Contingency Plan 15 9.0 Conclusion 15 10.0 References 16 Introduction FIJI Water was founded David Gilmour a Canadian hotel and gold mining mogul. In 1996, FIJI Water started its operations in the Islands of Fiji (McMaster & Nowak, 2009). They leased land from the Fijian government that was located on top of a massive artesian aquifer in the Yaqara Valley of Fiji's main island (McMaster & Nowak, 2009). FIJI Water was able to successfully attract consumers to its pure artesian water with slogans like "untouched" and "unpolluted" (McMaster & Nowak, 2009). With adopting a successful branding and marketing strategy, FIJI Water gained competitive advantage over its competitors through creating a unique brand image that is portrayed healthy, trendy, and high-end. Recently, FIJI Water has been facing heavy criticism not just for its carbon footprint, but also for its entire business model of shipping a product (water) to markets where high quality water is readily available for free. This...
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...a. What type of organization is Australian Beverages Limited (ABL)? ABL is an Australian public listed company operating in multi-beverage business. It commenced operation in 1937 with its first manufacturing plant opened in Sydney in 1938. After a series of market expansions, ABL is currently the second largest company in Australia non-alcoholic beverage industry. The company is run by Tom Dwyer, the current managing director, who has been appointed since 2005. b. What industry, product segments/markets does ABL operate in? ABL is currently the second largest company in Australian non-alcoholic beverage industry. With the exception of bottled water, ABL operates in almost all product segments of non-alcoholic beverage market, that is, carbonated soft drinks (CSD), fruit and milk-based drinks, etc. It has also moved into snack food market through acquisition of several small businesses. Its core activities include manufacturing, distribution and marketing. c. What is the current life-cycle position of the industry? Non-alcoholic industry ➢ The non-alcoholic beverage industry is at the growth stage of its life cycle. This is evidenced by: (1) Consumption of non-alcoholic beverage in Australia increased form 179.7 liters per capita in 2005 to 228.5 liters per capita in 2009, representing a 27% increase. (2) As Australian per capita consumption follows US pattern, Australian’s current level of 63% of US per capita consumption indicates significant opportunities for growth...
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...PAPER: BOTTLED WATER” According to UXL Science Fact Finder, 80% of the earth’s surface is water. 97% of the world’s water is seawater. 3%of the world’s water is fresh water. 1%of the world’s water is suitable for drinking and only about 0.08% of the world’s drinkable water is accessible to humans. Bottled water and Tap water, which is safer and healthier? What are their differences? Do we really have to choose between the two? One thing that is certain: we cannot live without water whether it is safe to drink or not. Both bottled water and tap water is safe to drink but they have differences. Bottled water is a drinking water that is carbonated, distilled, mineralized and place in a plastic or glass bottle while tap water is a drinking water that comes from an indoor tap. It is a part of a large indoor plumbing system that requires a complex supportive infrastructure, including a stable water source, piping and water filtration to keep the water safe. People choose bottled water for it is safer, healthful and tastes refreshing, a healthy alternative to other beverages for people seeking to eliminate or reduce their consumption of calories, sugar, sweeteners, caffeine, colorants, and other additives, no chlorine taste or odor and available at various price points and sizes. Bottled water companies have a proven commitment to environmental stewardship and a vested interest and responsibility to protect the resources they used to produce a healthy packaged beverage. Bottled water...
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...Bottled Water report Autor: Marlon- Pavel End ID:12074541 Written on the 14 – 15. 2. 2013 Contents page 1. Introduction and Background Information Page 1 2. Demand & Supply Factors a. The economic crises Page 1 b. Weather- Global warming Page 2 c. Advertisement Page 3 d. The environment Page 4 3. Elasticity or inelasticity of demand and supply related to the factors above Page 5 4. competitive and pricing strategies e. water drunk at home Page 7 f. water drunk outside Page 7 5. Conclusion Page 7 6. References Page 9 Introduction and Background information This report was requested by my summer internship company and contains information about the current market situation of bottled water drunk in the home and bottled water drunk outside the home. The report will focus in these two markets, on supply and demand factors, concepts of elasticity of demand and of supply related to the factors and competitive and pricing strategies. The information given in the report are researched in databases, books, websites, internet articles and YouTube clips. Supply and demand factors in the markets. The economic crises The economic crises, started in 2008 caused a decrease in the PDI (Personal Disposable Income) which led to a decrease in general household spending (Kirkup, 2011) The bottled water market was affected by the economic...
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...Bottled Water: An Issue in the Shadows As people grab for that pre-chilled bottle of water in gas stations, do they stop to think about the issues that are carried with it? Arthur von Wiesenberger stated that the need for social status is what caused the birth of the bottled water industry. Along with the need for social status raised the belief that bottled water is healthier and safer than water from the tap (Davies). Although believing that bottled water is healthier than tap water is a misconception, there is no doubt about the environmental impact that bottled water totes with it (Howard). Since the introduction of bottled water in the 1970’s, sales have risen and show no sign in stopping (Fishman). In 2005, Americans spent nearly $9 billion on bottled water (Davies). In one year the number nearly doubled, jumping to $15 billion. On a global level, approximately $60 billion is spent on bottled water (Knowledge@W.P. Carey). In relation to tap water, it costs about 10,000 times more to produce the water in bottles (Neal and Thompson). Americans often pay up to four times the price of gasoline for bottled water when they can have tap water for next to nothing (Fishman). The bottled water industry is expected to become the number one beverage in the nation by 2011 (Knowledge@W.P. Carey). “If you were cool, you were drinking bottled water,” stated Ed Slate, Evian’s marketing vice president in 1990 (Fishman). Ever since seeing their favorite celebrities carrying bottles of designer...
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...Bottled Water Industry Analysis & Recommendations I. Industry Introduction The Bottled Water industry is still in an expansionary/growth stage. In 2005 the bottled water industry accounted for $70 billion, and is expected to reach $140 billion by the year 2020.Advertising budgets are very heavy in companies such as Pepsi (Aquafina), and are positive indicators of the current [growth] stage in the product’s lifecycle. However, the bottled water industry is currently experiencing a skewing of profitability numbers (compared with last-year-to-date numbers) due to a shift in production from bulk to bottled water. A new and rapidly growing trend in the bottled water industry is the production of premium-priced “enhanced waters,” which competes on the product category level, and increases profits dramatically when purchased over traditional [non-premium] bottles of water. The aggressive advertising campaigns for bottled water and premium-priced “enhanced waters” coupled with health-related trends provide for a greater proportion of market-share for water companies who utilize their ability to expand their product line on the generic competition level. II. Four Types of Competition (& Competitors) for the Bottled Water Industry: Competition is the driving force in any and every industry. There are four different types of competition which, [each] in their own way, affect the sales of any given industry. This...
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...Identify the industry, product segments and value chain Industry – Australian bottled water manufacturing industry Product segments includes stilled water and sparkling water Value chain – (upstream) Access to water supply > Manufacturing > Packaging > Distribution > Retailers > Consumers (downstream) 2. Current life cycle position of the industry Australian bottled water manufacturing industry is at the growth stage of its life cycle. It is evolved out of the soft drink manufacturing industry during the 1990s, hence considered a relatively new industry. It is the fastest growing category in the non-alcoholic beverage market in Aus in 2011. Growth is demonstrated that despite from a relatively low base compared to other more established beverages, it shows increase per capita consumption. This is shown in Table 1 that bottled water growth from 2001 to 2011, increasing significantly from 6.4% in 2001 to 13.3% in 2011 (i.e. a 107.8% increase over the period). It is also projected to increase by 30.8% from 2011 to 2016. Despite having Energy drink, ready to drink tea/coffee, sports drinks and milk drinks are also experiencing growth; however bottled water has the largest market share of all the other growing non-alcoholic beverages. A recent report by Global Earth Policy Institute shows that global consumption water rose 56.8% to 164 billion litres from 2007 to 2011. Australians consumed 963 million litres of bottled water, is lower comparison...
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