WATER IS WATER!

IS
IT?
Group 3
CRBR2

The curious case of bottled water

Based on article message in a bottle by Charles fisherman

WATER
Convenience or Commodity?

FIJI- UNTOUCHED

Worlds leading bottled water manufacturer

Exports > 1 million bottles per day to US
53 percent of the people dont have access to clean drinking water on a
regular basis.
But villagers are also benefitting- business, wages, learnings

POLAND SPRING- AMERICANS SURE ARE THIRSTY

Largest bottled water factory in North America

24 million bottles , 2.5 gallon jugs manufactured every 5 days

(CULTURE OF INDULGENCE)
1. Indispensable prop
2. Ignorant of the tap water at home
3. From barely a business to $15 billion industry

SAN PELLEGRINO

Free water to local citizens

trucks up carbon dioxide from another spring in order to
carbonate its water
1 litre glass bottle- added weight- added freight cost and
energy

NEW CUSTOMERS AND NEW OCCASIONS

Consumer Type

Need

Involvement

1. Water-purefectionist

1. Health benefits
2. Safety

High + Cognitive

2. Water explorer

1. Substitute for other

beverages
2. Quality/taste
3. Convenience

Medium (passive)

3. Image Seeker

1. Status
2. Packaging

Medium (passive)

4. Struggler

1. Thirst quencher

Low (impulse buyer)

ENVIRONMENTAL & SOCIAL IMPLICATIONS

1.
2.
3.
4.
5.
6.
7.

50 billion plastic water bottles in 2006 77% recyclable PET goes underused
38 billion bottles / yr- used as landfills
Bottled water isnt more healthier, tastier or safer than tap water.
2 litres of water consumed to prepare the 1 litre bottle
24/7 energy consumption
Transportation costs
Substitution effects
8. Supporting developing country

valued at USD 157.27 billion in 2013, which is

expected to reach USD 279.65 billion by 2020
BOTTLED WATER
MARKET

GROWTH DRIVERS- US & INDIA

Utilitarian & hedonic need

More utilitarian need

evolution of new packaging initiatives

Health conscious segment growth
Convenience & time saving
alternative
Status symbol

Urbanization
Health conscious segment growth
Rise in disposable income
Tourist influx
Convenience & time saving
alternative
Water scarcity / poor quality tap
water

Carbonated
Bottled Water

U.S.

India's
packaged bottled water

industry to reach

Rs.160 billion
US per capita consumption
32 gallons (120 litres) annually

by 2018

India per capita consumption

less than 5 litres annually

INDIAS MARKET

Market Value (2013) = Rs. 60 billion

Top 5 players = 67% share, Growing at 22% CAGR
Industry started in 1990s with Bisleri
Growth due to advertisement pure and healthy
Growing demand from institutions
Packaging formats to suit diff needs

BOTTLED WATER CONSUMPTION

25%

Bottling plants are

concentrated in southern
region- 55% of 3400+ plants

10%
CHALLENGES1. Low penetration in rural markets
2. Credibility of local brands
3. Increase use of water purifiers

40%
25%

INDIAS MARKET

Entry of Kinley in 2000

Aggressive marketing and distribution
Kinley commercial TV ads- SAY TRUTH (hedonic need)

WATER: ITS PURE, ITS HEALTHY, ITS PERFECTAND

WEVE MADE IT BETTER. THE FUTURE OF WATER
SOUNDS DISTINCTLY UNLIKE WATER.

CUSTOMERS
KNOW WHAT THEY WANT?

WHAT THEY WANT

WHY THEY WANT

Substitute for other beverages

Status symbol

Safety & purity

Dissatisfied with organoleptics (odor,

Refreshing Taste
Health conscious -Zero Calories and
additives
Convenience (travel)

taste, color) of tap water

Influenced by advertisements
Attractive packaging
Instant gratification

HOW TO SAVE A NATURAL RESOURCE HARMING OTHER

NATURAL RESOURCES?

WATER- A FORCE OF
NATURE