Competition in bottled water industry essay

The companies that have a low scope and economies of scale tend to have a lower position to compete with price strategies comparing to leading companies in industry. The producers have to negotiate with distributors for their deliveries on time to save the cost.

In term of bottle water, the majority of sales volume has burden on single- serving PET containers than 5 or The disadvantage of the small companies which are not well known by the consumers is that they have to pay massive costs to market their products comparing to the large bottled water corporations.

The business has been built in large part on savvy marketing, aimed at convincing consumers that not all water is created equal.

So we do recommend that Cola-Cola should make some new strategies to compete in the globalization such as: The single PET container has been satisfied by the customers because they are convenience and portable.

Furthermore, joint venture with local brand is a long term contract guarantee to make it easier for HOD to a specific region.

Still, real questions remain about the difference between tap and bottled water. According to von Wiesenberger, profit margins can range from 15 percent to percent, Competition in bottled water industry essay on the type of bottled water.

He pointed to the area in which bottled water sales are growing: For consumers who think they are paying a premium for purity, Olson said, they should think again.

In fact, the large bottlers are gain more competitive advantage over its competitors, because their bargaining power in negotiation with the supplier; and even they try to reduce their cost by purchased tap water from municipal water system, which will help them safe their variable cost too.

These producers can purchase a large quantity of raw materials at a time which means they can reduce price per units. What is competition like in the bottled water industry?

Competition in Bottled Water Industry

Recognizing a growth industry, PepsiCo and Coke launched their own brands, Aquafina and Dasani, in the mids.

Competition in Bottled Water Industry By: Some big convenience store has available shelves just for leading brand of bottled water, and in some case if small brands are allowed, they are facing high slotting fees from convenience store. The branding of bottled water has relied almost exclusively on the perception that it is purer and healthier than tap water.

Recognizing a growth industry, PepsiCo and Coke launched their own brands, Aquafina and Dasani, in the mids. Still, real questions remain about the difference between tap and bottled water. The branding of bottled water has relied almost exclusively on the perception that it is purer and healthier than tap water.

The company could write MPR planning and management first to indicate their objects and customer regions. Some companies, such as Penta Water, based in Carlsbad, are trying to distinguish themselves by saying that they have come up with a different structure of water.

Competition in the Bottled Water Industry in 2006

Because the consumers may believe that bottled water of Nestle sounds healthier than Coca-Cola brand since Nestle tend to emphasize their image on healthy food products. Finally Coca-Cola should continue its joint ventures with the regional companies in order to protect their products from barriers to entry both international trade restrictions and distribution channels.

The newest trends in water are those that are infused with vitamins, non-caloric flavors and other additives. Technological change has played an important role in the industry no matter the initiative process that seeks the water sources to the bottling facilities. So the producers have to develop their bottling system.

Because the product is essentially the same -- water -- companies must figure out ways to differentiate their brands. Some critics say there is no evidence that bottled water is any better than tap water and that regulations are actually more lax for the bottled water industry. Altogether, these companies are competing with each other, in many ways aggressively.

Degree of product differentiation Pepsi Co. Those kind brand producers benefits of strong economies of scale and scope. If its current growth patterns hold, bottled water will pass soft drinks in the next 10 to 15 years, said Gary A. According to von Wiesenberger, profit margins can range from 15 percent to percent, depending on the type of bottled water.

With the entrance of national brands, the highly fragmented and regional bottled water industry became mainstream, as did the perception that bottled water was significantly better than water from the kitchen sink.

For instance, Pepsi Co has its own spring water company and utilizes the facilities that produce soft drinks. An examination by the National Resources Defense Council in found that bottled water is not necessarily cleaner or safer than tap water.

What are economic characteristics of the bottled water industry? The real competition, he said, is with other beverages, such as fruit juices, soft drinks and alcohol.

While the Food and Drug Administration regulates bottled water, considering it a packaged product, the Environmental Protection Agency regulates tap water, or water that comes from a municipal sources.

Something that has to be shipped from Fiji has a lower profit margin than a product that is just purified tap water. Innovation is also the key factor for success that producers should introduced variation of products to enhance waters and functional such as flavoring, vitamins, carbohydrates, electrolytes, and other supplements.What is competition like in the bottled water industry?

The producers have to compete with each other in placing their products in the shelves. The companies that have a low scope and economies of scale tend to have a lower position to compete with price strategies comparing to leading companies in industry.

Competition in Bottled Water Industry This Essay Competition in Bottled Water Industry and other 64,+ term papers, college essay examples and free essays are available now on mint-body.com Autor: review • January 9, • Essay • 1, Words (8 Pages) • 1, Views4/4(1).

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Competition in the Bottled Water Industry 1. List and describe the dominant economic characteristics of the bottled water industry. Market size and growth rate The industry is size is worldwide with a growth rate averaging nearly 9% from (with a U.S. per capita growth from 20 gallons per year in to 26 gallons per year in ) Number of buyers There is a significant number of.

Competition in the Bottled Water Industry 1. List and describe the dominant economic characteristics of the bottled water industry.

Market size and growth rate The industry is size is worldwide with a growth rate averaging nearly 9% from (with a U.S. per capita growth from 20 gallons per year in to 26 gallons per year in ) Number of buyers There is a significant number of.

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Competition in bottled water industry essay
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