Question 1

What factors contributed to the marketing success of FIJI Water?

Analyse the 4 Ps and the positioning of the FIJI Water brand.
FIJIs 4 Ps
Word-of-mouth
Free product
placement
Targeted
sampling
Paid advertising
Locally and
internationally
Exclusive distributors
and retailers
Aggressive expansion
Premium
price
Taste
Ingredients
Packaging
Shape
Product Price
Promotion Place
FIJIs success factors
Innovative packaging
Premium product pricing
Effective distribution
Image-creating publicity
Good market environment
Highly skillfull marketers
Change in customer preferences
promise of good health, refinement, status, and
exclusivity
Question 2
What is the ethical and socially responsible marketing?
Why should marketers increasingly be concerned about
CSR issues and sustainability?
Ethical and Social

CSR is promoted as a business model to help companies
regulate themselves (because of the impact on general
public) as well as establishing a strong relationship with
the customer.

What is ethics?
Not only profit-driven
Reinforce social and ethical values for citizen benefit



CSR Issues and Sustainabilities
Ethics as a selling point
Component of brand image
Image of the organization
Easier access to information (customer awareness)
Green movement
Differentiation from competitors
Attract and retain talent


Question 3
What does it mean for FIJI Water to go carbon negative?
What do think about it? How does one measure and
report carbon footprints of products? Is the carbon
footprint of FIJI Water big compared to other products?
What does it mean to go carbon
negative?

Save more CO2 emissions than produced
More investments (costly)
FIJI Water is obligated to do it
More research and development (innovations)
Restructuring
Improve transparency / consumers



Our Thoughts
Pros Cons
Ambitious goal (company
vision)
Could lead to competitive
advantage
Overpromising
Public pressure
Right concept, but poor implementation
and therefore a risky strategy
Measurement of Footprint
Systematic aquistion of CO2 emissions along the
complete product lifecycle
Could be measured by special studies of institutions
Part of annual report (voluntary sustainability report)
Carbon Accounting
Comparison
FIJIs emissions:
85,400 metric tons CO
2
in 2007

Hard to compare due to:
- Different products categories
- Lack of international standards
- Lack of information

Not possible to compare to others companies but
important because of marketing reasons!
Question 4

What is greenwashing? How can it be identified?
Do you think FIJI Water is engaged in
greenwashing? From your point of view, what
could the company do to gain environmental
credibility?

What is Greenwashing?
Disinformation disseminated by an
organisation so as to present an environmentally
responsible public image.

Conduct that is misleading or deceptive or is
likely to mislead or deceive.
How to identify Greenwashing?
Specific parts of a product / project are communicated
and the rest is not mentioned
Transparent verification of marketing claims
Contradiction between marketing and reality
If the natural part is overstressed


Greenwashing at FIJI Water?
Pros Cons
No detailed description of the
calculation of the footprint
Hard facts of Greenwash
Brigade
Exploits a naturally occuring
product

Carbon negative goal
Concrete actions to reduce
CO2-emissions
Companys vision and reality do not fit
Question 5
Apply (a) Porters 5 Forces Analysis and (b) a SWOT
Analysis on FIJI Water. Describe the companys
competitive situation. Based on the results, what
strategic moves would you suggest?
Porters 5 Forces
Supplier power: relatively low because easily
replaceable
Buyer power: middle to high because water is an
everyday consumption good
Potential entrants: high threat of other bottled
water producers
Potential substitutes: high variety of potential
substitutes (other bottled water, tap water)
Industry rivalry: very tense rivalry among companies
Competitive Situation
Other premium bottled waters
Low cost waters
Due to environmental movement: tap water
Tense market environment due to numerous
competitors as well as substitution goods
SWOT Analysis
Strengths:
- Image
- Broad distribution

Weaknesses:
- Relatively expensive
- Environmental issue
Opportunities:
- Niche marketing
- Increasing Market

Threats:
- Ongoing environmental
movement
- Shrinking market

Strategic Moves
Further observation of the market and therefore the
amount of bottled water consumption
Further research and reduction of CO2 emissions to
achieve the goal of being carbon negative and building
up a competitive advantage and extension to other
markets
Continue to educate the consumer about the
differences between FIJI Water and other bottled
waters and tap water
Question 6
In your opinion, are the concerns of the government of
Fiji about the negative contribution of the FIJI Water
to the local economy justified? Does the company do
enough to improve its relations with the government
and the local community? What else should it do to
improve those relations?
Negative contribution of FIJI
Water to the local economy?
Pros Cons
FIJI Water employs mostly
uneducated locals and
trains them on the job
Fijis government profits
from exports and taxes
(water is the second most
important export product)
Heavy fading of local
infrastructure
FIJI Water paid no taxes till
2008
FIJI Water exploits a scarce
resource

FIJI Water brought lots of benefits to the local economy
Does the company do enough to improve its
relations with the government and the local
community?
Relations with the local community
FIJI Water has a strong CSR program
Uses local providers for services and supply
Supports children education
Fund to support projects in the village
Alliance with local companies by outsourcing departments
Donates money to local aid

FIJI Water takes strong efforts to be a good corporate citizen

Does the company do enough to improve its
relations with the government and the local
community?
Relations with the local government
Water companies try to outplay the government by relations with
the media
Aggressive lobbying against government
Blackmailed the government with production stop
Alliance with local newspapers to boycott the government
Insufficient agreements between government and FIJI Water

Need for productive dialogue
What else should FIJI Water do to improve
the relations with the government and
society?
Find an adequate tax system
Restructure the production process to make it more
sustainable
Launch a forum where representatives of government,
society and water industry can exchange ideas
Help to stabilize the government
Question 7
Taking a look at FIJI Waters current situation and
customers as well as trends in consumer needs &
behavior, what are the main future challenges regarding
marketing the product? What are your
recommendations to respond to them?
Main future challenges regarding the
marketing of the product


Proof that FIJI Water does not do greenwashing
Achieve the Carbon Negative goal,
More detailed sustainability report
Improve the image of bottled water
Recommendations to respond to these
challenges

Restructure production and distribution processes to save
energy and ressources
Usage of renewable energies
Create a more transparent insight into the companys
sustainability efforts
Concentrate on metropolitain areas and regions with poor
tap water quality
(Establish a border between FIJI Water and other waters)

Sources
Case FIJI Water
http://www.fijiwater.com
http://inhabitat.com/is-it-green-fiji-water/
http://www.odysseytransform.com/2012/12/21/get-brilliant-at-the-4ps/
http://www.cascademuskyassociation.com/Logo__Fiji_Water.jpg
http://fenixenergy.com/wp-content/uploads/2011/08/iStock_carbon-
footprint.jpg
http://blog.printecosoftware.com/wp-content/uploads/2013/08/greenwash-
paint-150.jpg
http://jsrcharteredaccountants.com/wp-
content/uploads/2011/07/ScrabbleBusinessStrategy.jpg
http://www.goodmorningcreativity.com/wp-content/uploads/2012/01/Create-
your-future1.jpg
http://www.charterworld.com/news/wp-
content/uploads/2011/01/Fiji_Islands.jpg
http://en.wikipedia.org/wiki/Socially_responsible_marketing