Bottled Water Case: Industrial Evolution
1. Describe the bottled water industry as presented in the case
a. Size in sales: In 2001, bottled water was among the world’s most attractive beverage categories, with global sales exceeding 32 billion gallons and annual growth averaging nearly 9 percent between 1996 and 2001.
b. Projected growth: U.S. per capita consumption had grown to nearly 20 gallons a year by 2001 and was expected to grow to 26 gallons a year by 2005
c. Number of Competitors: Both the global and U.S. bottled water markets had become dominated by a few international food and beverage producers like Coca-Cola, PepsiCo, Nestlé, and Groupe Danone, but they also included many small regional sellers that were required to
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Bottled water consumption and sales have been increasing exponentially since its emergence as a widely-accepted commercial beverage category. The bottled water industry is now growing at 8% to 10% annually – about twice as fast as other beverages. In fact, in 2003 bottled water became the second largest commercial beverage category by volume in the United States, surpassing milk, coffee, beer, and is now second only to carbonated soft drinks.
d. Demographics (what is the industry’s focus customer) Another significant trend is product marketing and packaging. Realizing that consumers cite taste, quality, and purity as the top reasons for drinking bottled water, bottlers market and design bottles to display their purity. Other manufacturers seek to carve out a new level in the bottled water industry introducing high-end products. Another packaging trend in the bottled water industry is multi-packs. As current bottled water consumption grows, more consumers are turning to multi-packs to save time and money.
e. Governmental rule (tightly restricted, loose enough to give industry room to grow/compete.) Bottled water producers in the United States were required to meet the standards of both the EPA and the U.S. Food and Drug Administration (FDA). Like all food and beverage products sold in the United States, bottled water was subject to such food safety and labeling requirements as nutritional labeling provisions and general Good
In terms of bottled water there are a lot of substitutes and it can be difficult to capture a targeted market and retain them as consumers have many similar products to choose from.
As a result, sales of bottled water are expected to increase. Of particular significance in the industry has been the large number of new products that have been launched and accepted by consumers since 2005, making bottled water a dynamic and fast growing industry.
When working for a company or any business for that matter, It’s important that you allow yourself to take in constructive criticism from consumers, in order to make your business more successful. Yes, everyone has Consumer’s right, meaning that you have the right to be heard, the right to environmental health, the right to service, the right to be informed and the right to choose what you buy. Consumers Association of Penang. (n.d.). Retrieved September 20, 2017, If I was to work at the public relations department at one of the water bottle companies, I’ll respond by telling the consumers that drinking bottled water has its perks. Say you were traveling aboard, drinking tap water is not the safest
In the United States not only does every state have tap water running through its veins but also varying brands of bottled water in every supermarket, corner store, and gas station.
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 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,
In the article, the author makes multiple statements against bottled water and supports tap water. Leonard starts by stating advertising companies try to persuade people into thinking tap water is less regulated, does not come from an organic source, and is polluted, so more people would buy their overpriced tap water. The tactic of scaring people into buying bottled water became the bottled water company’s main marketing move. This marketing
The Environmental Protection Agency (EPA) is responsible for regulating and overseeing the effective distribution of clean tap water. Even though, history has shown instances of water contamination, it is only normal that such incidents occur. The EPA has set procedures for monitoring the municipal waterworks and from their regulated activities, quick resolution for thresholds are achieved (Lewis 1). However, the Food and Drug Administration (FDA), subsequently setting inferior standards for fundamental
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
Water bottles are a staple in today’s society. In his article, “Costly water: Bottled and Sold: The History Behind Our Obsession with Bottled Water,” author Martin W. Lewis quotes Peter H. Gleick when he says that, “Consumers buy bottled water for four main reasons: safety, taste, style, and convenience,” and he’s absolutely right (Par. 9). Bottled water is cleaner, healthier, and more convenient than tap water. More people are more apt to grab a bottle of water on the go, rather than fill a reusable bottle from the sink. It’s just easy. At least, that’s what we are led to believe. Bottled water is constantly in battle with its not-so-lavish counterpart, tap water. Some will even argue that the benefits of bottled water alone outweigh the cost. They, however, do not. The fact is, water bottles have plagued society for years and have become a growing menace to our environment and our people.
The water bottle industry as made a positive impact on America’s economy. Americans have experienced the economic strain in the job market over the past several years with layoffs and a lack in the number of jobs available. This industry not only supplies us with a convenient, healthier beverage option, but also provides jobs for the American worker. Based on analysis
Bottled water is extremely expensive. Why pay for water when we can have it for free at our disposable through our own water supply. In 2016 Americans drank over 30 billion bottles of water spending almost 12 billion dollars (Statistic Brain, 2016). Many people complain about our water supply, some say it taste like bleach, others say it has a metal after taste and some say they just do not trust it. Americans are spending money on water filters and also purchasing bottled water when in reality many bottled water companies are using tap water and purifying it themselves. The Safe Drinking Water Act was implemented to assure the American people that our water is clean and safe to ingest (Environmental Protection Agency, 2016).
In fact 22% of test water bottle brands had chemical contaminants higher than the state limit (ABC, 1). So why do Americans think bottled water is so great? Maybe it’s because of how much companies advertise the product, advertising expenses for bottled water totaled $61 million in 2012 ("International Bottled Water Association" 1). Whatever the reason may be, bottled water is the second most popular beverage in the U.S.A., and more and more bottles of water are being produced and distributed this very second.
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 United States is considered to have the largest consumer market for bottled water worldwide. Bottled water is intended for human consumption and comes sealed in a bottle or similar containers with no additional ingredients added according to the Food and Drug Administration (FDA). “Beverage Industry Magazine” stated that the bottled still water brands competing in the U.S. market are Aquafina, Dasani, Glaceau Vitamin water, Poland Spring, and Nestle’ Pure Life, (Beverage Industry Magazine.2015). The human body is made up of about 60 percent water (Clement,