Essay about Competition in Bottled Water Industry

Words: 902
Pages: 4
Open Document
Economic Characteristics
Market size and growth rate
The fastest-growing and most attractive beverage category in the world.
Global sales exceeding 38 billions gallons in 2003
Annual growth rate more than 10% between 1998 and 2003
U.S. is the world’s largest market with annual sales nearly 6.4 billions gallons.
Opportunities for increasing market share become lesser as currently in the early maturity stage

Number of buyers
Buyers included consumers, supermarkets, natural food stores, whole-seller, convenience stores and restaurants etc.
Large pool of buyers but no one accounts for a significant fraction of overall market demand.

Degree of product differentiation
Various types, such as natural mineral water, spring water and …show more content…
Visibility on the shelves gives retailers and convenience stores to demand for low price and slotting fees.

SWOT Analysis: Coca-Cola
Strengths
World’s leading manufacturer, marketer and distributor of non-alcoholic beverage.
The most Valuable Global Brand.
Vast global distribution system.
Market leading position in soft drinks industry.
The re-join of Neville Isdell as CEO in 2004.

Weaknesses
Overly dependant on sales of carbonated soft drinks.
Lack of product diversity.
Too narrow of product relative to rivals.
Highest in overall unit cost for bottled water.
Weak in product innovation capabilities.
Using inappropriate strategy.

Opportunities
New bottled water markets through joint venture with Danone Waters.
Expand its product line with developed of Dasani NutriWater.
Expanding to foreign countries with local name: Bon Aqua and NaturAqua.
Acquisition of a spring in Derbyshire, England.

Threats
Annual growth rate of bottled water sales slowdown in U.S. in year 2003.
Increasing intensify of competition among bottled water producers.
Introduced of innovative product by PepsiCo, Nestle and Danone.
The FDA and foreign countries government’s regulation.

SWOT Analysis: PepsiCo
Strengths
World’s fourth largest food and beverage company.
Brand diversification and best selling brand.
Well established in food and beverage industry.
Vast beverage
Show More

Related Documents: Essay about Competition in Bottled Water Industry

The Buyers For The Water Industry

The buyers for the water industry include individual consumers, retailers, food stores, restaurants, convenience stores, vending machines, and mass merchandisers. The main bargaining power is due because bottled water could be purchased from nearly any location. Furthermore, the standards imposed on the quality of water by the EPA and FDA make it a commodity. Therefore, lower prices are valued more than differentiation. Evidence pointing to increased buyer’s power includes; number of buyers, importance…

Words 517 - Pages 3

Fiji water Essay

new trendy product, bottled water suffers financial instability with the instauration of the new corporate tax in Fiji. This new tax impacted investment and confidence which resulted in lots of people losing their jobs for a while. Even more, the company was accused of transfer pricing by Fiji government because the biggest portion of the profit was funneled to the United States as a safe heaven. Fortunately, the government accusations have been temporary discarded and Fiji Water actions were judged…

Words 847 - Pages 4

Abl Case Study Essay

2008. 2. Identify the industry, product segments and value chain. The industry is the Australian non-alcoholic beverages industry. In this case study, it is focused on the Australian bottled water manufacturing industry. Product segments :- Carbonated soft drinks (CSD), bottled water, milk drinks, fruit drinks, sport drinks, ready to drink tea/coffee, energy drinks.…

Words 2773 - Pages 12

Essay on The Porter’s Five Forces Analysis of the Cola Industry

the Cola industry, which show why the soft drink industry has been so profitable: The first force is the threat of new entrants, which is low. As we’ve seen in the case, there is no major risk of new entrants in the Cola industry for Coca-Cola and Pepsi-Cola. Also as stated in the case, the number of U.S. soft drink bottlers has significantly decreased from more than 2,000 in 1970, when Americans were consuming only 23 gallons of CSDs annually, to fewer than 300 in 2004, when the industry was topping…

Words 897 - Pages 4

Cola Wars Case Essay

in the United States. The Concentrate Producers (CPs) were responsible for blending raw material ingredients, packaging the blend in plastic canisters, and shipping it to the Bottler. Using Porter’s Five Forces analysis for the CPs industry, we determined that the Bargaining Power of Buyers was low. In 1987, Coke’s Master Bottler Contract granted Coke the right to determine the concentrate price based on a pricing formula that adjusted quarterly and stated a maximum price for the sweetener…

Words 1179 - Pages 5

Man 301 Final Project Essay

Year Marketing Plan—Blue Mountain Spring Water, Inc. |INSTRUCTIONS | |Throughout the semester you will complete incrementally segments of a final project that you must submit at the| |end of the course: a marketing plan. | |Your marketing plan will feature Blue Mountain Spring Water, Inc. Information about Blue Mountain is…

Words 5575 - Pages 23

case 1 Essays

Name: Nguyen Dinh SID: 010551682 MGMT 425 Case Study #1 Date: 10/02/15 Competition in the Bottled Water Industry in 2006 Bottle water is one of the most attractive industry in the beverage categories. One of the reason for this industry so attractive is because people can’t live without water. Bottle water had been widely consumed in Western Europe and Mexico since 1990s. At that time, bottle water in the US is consider of novelty or prestige product. Since 1990s this product had grown in popularity…

Words 1076 - Pages 5

Essay on Case Study: the Brita Products Company

SUMMARY Situation Analysis: In 1988 Charlie Couric, a marketing executive at Clorox, oversaw the acquisition by Clorox of the right to market Brita Water Purifier Pitchers in United States, and then became the President and General Manager of Brita USA. He proposed a risky deficit-spending strategy to gain market with the goal of getting a Brita water pitcher on every kitchen countertop in the United States. As a result Brita USA incurred heavy losses upfront as initial sunk costs dwarfed any revenue…

Words 1098 - Pages 5

Essay about Competition in energy drinks, sports drinks and vitamin enhanced beverages

Competition in energy drinks, sports drinks and vitamin enhanced beverages Kyle Holloway Spring Hill College INTRODUCTION Alternative beverages such as sports drinks, energy drinks, and vitamin-enhanced beverages developed into an important competitor for the beverage industry and saw rapid growth in the mid-2000s. Alternative beverages compete on the basis of differentiation from each other in the market and traditional drinks, such as carbonated soft drinks and fruit juices. The largest…

Words 2321 - Pages 10

Cola Wars Essay

For more than a century, Coke and Pepsi have been the two popular companies in competition of the world’s beverage market. “The most intense battles in the so-called cola wars were fought over the $74 billion carbonated soft drink (CSD) industry in the United States.” Although still in the lead, recent sales of CSD have declined. For years, the rivalry between Cola and Pepsi has provided a competitive advantage for both parties, motivating each to do whatever is necessary to stay on top. John…

Words 510 - Pages 3