Competition in the Bottle Water Industry
Customers are concerned with to much sugar and other nutritions inside there drinks, these concerns have led them to consume bottled water. More and more people are becoming aware of their health and lifestyle and are improving there need for hydration. More people believe that drinking more water improves there well being and gives them more energy and makes there whole outlook better. Chemical water that comes from the tap water is a huge problem in the united states , the water is full of filth and it contains chloride which has side effects of memory loss.
The bottled water is more pure and clean also bottled water meets the requirement of FDA and EPA. The safety is the key to drinking healthy and clean water and every individual is cautious of his safety. Bottled water can be found at any location it is sold every where. Convenience is the key to buying bottled water people are always in need of water and it is at any desired location.
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In the distribution key success factors the water bottled companies can make deliveries of bottled water with other drinks as well.
Companies like Coca Cola and Pepsi drinks also make deliveries of Dasani and Aquafina water available anywhere theres a coke or Pepsi machine. Another interesting to note is some bottled water companies negotiate with stadiums , universities, colleges and school system to make there beverages availaible everywhere. Brand equity is also huge in the bottled water industry customers are always attracted to brand loyalty , this makes the water bottled seller create awareness and use tactics to attract the market.
Marketing is the key to any successful industry the more the brand equity the more the brand loyalty it is really important to build a relationship with a customer and provide them with there needs. The price competition in the market also makes the manufacturer more aware of achieving a low production cost. In the technology keys to success factors the bottled water are purified , filled manufactured, marketed by 50 different companies some offer bottle washers complete filling and dionization equiptment .
The distribution channel is a huge success factor it delivers packages completes and runs it through the production level. Even though the overall growth rate of the market is declining as the market becomes saturated the per Capita consumption is still growing. The price competition becomes a huge factor for the main sellers as the market increases and becomes more efficient, to deal with price competition companies like Pepsi Coca Cola and Nestle offer discounts on there 12 and 24 packs to boost sales and volume.
Another thing to take note is a lot of these companies create join ventures and acquisition to increase there business. Bottled water is found anywhere internationally or locally. The business is expanded to many countries around the world to increase revenue and increase the use of bottled water. The local competition makes it hard for the regional to survive since the companies take advantage of marketing locally. Since there is a widespread acceptance of bottled water, many companies differentiate there product , by creating enhanced bottled water that contain vitamins and minerals inside.
As the market increases the companies continue to innovate and bring in more and more customers. Another huge giant in the market is Nestle which offers variety of recognized brand names. It generates spring water with no chemicals or carbonation in the US market. Nestle has examined and marketed functional water with vitamins and plant extracts. There were calorie free flavor water introduced in 2006. Nestle also uses packaging as a technique to differentiate between different types of water.
Nestle uses bubble shape bottled for children and spill proof cap for babies. Another strategy that Nestle uses is home and office delivery , it makes it convenient for customers and the cost is below average. Coca Cola is another company that started making and marketing is own brand of bottled water called Dasani in 1999. The water contains potassium chloride , magnesium sulphate, and salt . The company has set a standard for purified water and believes these are the benefits of spring water.