Bottled Water Consumption

662 Words3 Pages
In 2010, bottled water consumption within the U.S. was around 28 gallons per person. As a beverage category, bottled water represented $10.6 billion in annual sales. This category has grown at an impressive rate. In fact the value of the U.S. bottled-water market doubled in less than a decade. The success of this product represents a success for marketing. In this discussion thread we will examine some of the reasons for its success. Issues to Discuss: 1. Describe the target market for this bottled water. How does bottled water create value for target market consumers? Target market refers to a group or customer segment that a firm is interested in selling its product or services. This is a two way relationship as the potential must…show more content…
The shape of the bottle is shaped as a glacier that resembles an ice formation that is different on each face of the bottle, which is supposed to symbolize the ever changing nature of a glacier. When it comes to product and distribution Icelandic is carbon neutral which is important because mineral water receives a lot of criticism for leaving a carbon footprint. Icelandic has secured large deals with companies like Anheuser-Bush that help with distribution. They price their water at the upper end of the range of mineral water which positions their product as premium water. Icelandic promotes their product at large events such as the Cannes Film Festival and by targeting at such events it creates an awareness for their brand. 3. Bottled water has come under attack from environmental groups for the amount of waste created by the bottles. How do you feel this concern about packaging waste will impact sales? How could the marketing mix elements be used to address this concern? Sales have seen a negative impact and studies have shown that between 2007 and 2010 Nestle water the largest water bottler worldwide saw a 12.7 percent decline in sales. According to the website, bottled water “comes with unnecessary costs to the customer as well as environmental damage from the associated energy consumption, water use and
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