1. Target marketing and market segmentation of Bling H20
Bling H2O crystal-encrusted of Beverly Hills is the inspiration of Kevin G. Boyd, a Hollywood writer-producer. While working on various studio lots where image is, well, everything, he noticed that you could tell a lot about a person by the bottled water he/she carried. So just like any other savvy business person, he decided to capitalize on his finding. "Our product is strategically positioned to target the expanding super-luxury consumer market."
Target marketing
Kotler(2004)Here, the seller identifies market segments, selects one or more of them, and develops products and marketing mixes tailored to each. For example, if the Bling H20 were available in Australia, the marketer
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"One issue facing the industry is that we don't know what sort of impact a broad economic slowdown might have. Australians like their water low in mineral salts, compared to, say, Europeans," Gentile says. "There is sometimes a perception that bottled water competes with tap water, but it is just not the case, except with those drinkers who drink it because they don't like the fluoride or chlorine associated with tap water. Aside from that, the competition is with other bottled drinks, especially carbonates. He also said bottled water has the advantage, of course, in competition with other commercial beverages of being calorie free, and a lot of people especially like the taste of spring water, because it doesn't contain chlorine
‘Australia’s Manufacturing and Industrial Directory’ website (2004) has details of Consumer trends, Food and beverage manufacturers are also changing their strategy in how they are marketing products, according to Stanton, who points to a trend towards not only communicating more information about a product, but explaining the benefits of the product’s contents. Consumers are also becoming more environmentally conscious with a preference for simple packaging.
INDUSTRY REGULATIONS
The Food Standards Australia New
The bulky and relatively low value of the product as well as the high costs of transport mean that the manufacturing and distribution plants need to be located where there are major population centres. The Australian bottled water manufacturing industry is currently in a growth stage. Growth has been achieved due to the increase in per capita consumption of bottled water, albeit from a relatively low base compared with other more established beverages. As consumers become more health conscious and change their drinking habits away from CSDs to healthier beverages, bottled water would increasingly become their drink of choice.
• Consumers want to be more nutrition-conscious and the desire for low-calorie products is growing.
Seventy percent of the human body is comprised of water. This makes drinking water quality vital. The EPA estimates the average adult consumes 1.2 liters daily or 115 gallons of community (tap) water daily while the average consumption of bottled water per capita in the U.S. is in excess of 30.8 gallons per year and is expected to continue to increase according to the International Bottled Water Association (IBWA) and the Beverage Marketing Association’s 2013 report. Bottled water costs anywhere from 240 to 10,000 times more per gallon than the average cost of tap, but people’s perception that bottled water is purer, safer or healthier is driven, in part, by strong bottled water marketing campaigns that focus on news reports about crises that involve municipal water supplies. (NRDC, “Bottled Water Pure Drink or Pure Hype”) The sources for both tap and bottled waters as well as additives to either enrich or neutralize contents of water determine the mineral and chemical composition of drinking water. Is bottled water really any purer or healthier than local tap water?
Another way bottled water is the way to go is because it helps aid in healthy choices. In the article, “Grab the Bottle”, it states that “bottled water has helped consumers choose to drink more water because it presents it in a convenient way (Giroux). In many cases, consumers buy more objects that appeal to the eyes. Bottled water comes in different sizes and shapes. What is trending in society, the public wants automatically. In the article, “Comment-Soft Drinks and Water- The Future of Bottled Water”, he told that “attractive packages alone can make us feel that what we are drinking is beneficial” (Rowlands). Trendy shapes, sizes, and colors are what the public is drawn to. If a consumer sees a unique water bottle in the store, he or she will buy that because it’s trendy and popular in society.
The economy is hurt when people spend money on bottled water, which in fact tastes the same as tap water, but costs much more. Not only do people waste money on water that tastes the same as tap, but they waste money on water that helps destroy the environment. Not only does bottled water cost more, but it takes money away that could be used to help upgrade and provide cleaner tap water. People would like to save money, but they spend it on bottled water which tie in with tap water. “Nearly 40 percent of bottled water is simply filtered water filled in a bottle. Humans pay 1900 times
Billions of gallons of bottled water are consumed in the United States every year. Many Americans choose bottled water for its convenience and say that the taste is much better than tap water. They say tap water is flat and tasteless. Some argue that the cost of bottled water far exceeds the cost of tap water. One study showed that one bottled water per day would cost the consumer $365 per year while the same amount of tap water would cost ten cents. While bottled water is more expensive, it provides over 130,000 jobs resulting in over six billion dollars in salaries for american workers “Bottled Water Matters.” In the article, “ Bad To The Last Drop,” Tom Standage says that bottled water is too expensive and encourages people to stop buying bottled water and give the money to charity. In the article “ In Defense of Bottled Water,” Thomas J. Lauria says that eliminating bottled water would have the unintended consequence of driving people to choose more unhealthy beverages which have thicker plastic bottles and would be worse on the environment. He also says that bottled water is an important choice in situations where there is a lack of tap water or concern about water
The Australian bottled water industry has been growing rapidly over the past decade. Many Australians drink bottled water on a regular basis, and on average consumed 21.2 litres per person (Australian Bureau of Statistics) in 2001. The boom in consumption of bottled water has moved the product beyond the niche market and into the mainstream as it has become a staple to many Australians. Many people drink bottled water today simply because they prefer the taste to that of tap water or perceive it to have more purity. Other reasons behind the explosion in bottled water consumption are: consumers' passion for fitness which guides them to fewer caloric beverages; increased accessibility of bottled water via convenience stores,
From helping the daily jogger stay hydrated during a run to that mom and family trying to stay hydrated at the amusement park, bottled water has had a lot of good to it. However do those goods outweigh the bad? In “Bottled Water: Friend or Foe?” by Christopher Castillo, Diana Goettsch, Angela Reid, and Catherine Sterling argue bottled water are our worst enemy, reasons being the bottle itself has harming chemicals within it which we are drinking, bottled water damages our environment, and lastly we are spending more on bottled water when we have the same water coming from our sinks.
In Peter Gleick’s “Selling Bottled Water: The Modern Medicine Show” and Cynthia Barnett’s “Business in a Bottle”, bottled water is argued to be an excessive commodity falsely advertised as healthier and more beneficial than tap water to society and the environment. Both authors discuss that bottled water is actually equivalent in quality to tap water and in some cases even more hazardous to the human body. Public water itself is a less expensive resource that is more accessible to the masses. However, due to fraudulent companies focused on profit and the lack of effective oversight, people are deterred from realizing that there does not need to be an alternative to municipal water. Gleick
Stylish design in package may attract more attention, by printing Jennifer Hawkins’ image on light sparking water bottle wrap, it is thought to be fashionable by some young people to hold a bottle of that water.
Through Barnett and Gleick’s work, it is concluded that bottled water became popular due to the misleading advertising and pseudoscientific ideas, which targeted the eyes and emotions of the population; this simple trick allowed bottling companies to make a huge profit. As a sub-claim, Barnett illustrates how false advertising in labels attracts the population and plays a major role in the creation of the grandiose image of bottled water. Gleick’s grounds further expand and support Barnett’s sub-claim, however Gleick leans
The author of “Bottled Versus Tap” said, “In light of such facts, bottled water may seem preferable. But coming as it does from many of the same sources as tap, bottled water is subject to many of the same contaminants2.¨Bottled water may not only have the same contaminants, but it the water may even have more chemicals in it, due to the plastic in the bottle itself2. Of course, in big families, the cost can be high for running tap water, but many researchers have proven that 1 billion water bottles are thrown away every year, almost equaling the high price of gasoline2. The author of “Goodbye Bottled Water?” said,“‘Thronson explained that 1.5 million barrels of petroleum are used to produce plastic water bottles in the United States each year. That’s enough to supply 250,000 homes with electricity for a year´¨. Americans are wasting valuable money on water that we can get very easily out of our faucet. Mayors from all around the United States have held meetings about the idea of banning bottled water2. Many are against the decision of banning bottled water, they argue that by taking away bottled water, the healthiest beverage out there is being taken away too. Although there is reasoning behind why people might be upset about this decision, the environment would greatly improve if people drank less bottled water. It is true that bottled water is very clean and reliable in times of
In order to market the product into the market successfully, marketers need to have some marketing strategy to enter the desired market and make profit. Market segmentation is the process of dividing a market into subsets of consumers with common needs or characteristics (Schiffman et al., 2011). Understanding the market size and segmentation is valuable, but the keys to effective targeting is to know just how valuable specific consumer groups are, and being able to quantify the impact of consumer trends ( Berry, 1999).
In contemporary society, bottled water consumption has become more attractive and popular. While in 2009 were only sold 161,589 million liters of bottled water, in 2011 approximately 181.61 million liters were sold all over the world (The Statistics Portal, 2014). In this context, attributing that significant growth of bottled water commercialization is consequence of a successful marketing should
Kotler: We see marketing management as the art and science of choosing target markets and getting, keeping and growing