competition in bottled water industry
DESCRIPTION
Competition in bottled water industryTRANSCRIPT
Competition in the Bottled Water Industry in 2006
Group E
Objective
• Analysis brings out the relative comparison between the major players of the global bottled water industry including heavyweights such as Coca Cola, Nestle and Pepsi co.
• The various strategies being undertaken and the prevalent market norms.
Facts and figures• World’s most attractive beverage
categories• $62 billion Revenue • Per Capita Consumption 25 gallons in
US• Forecast to grow by 30% in 2005-10• Controlled by three major players –
Coca-cola, Pepsico, Nestle • Local minor players
Stratégies Employed
• Innovative product variation • Lowered prices in developed markets• New market penetration• Strategic agreements• Acquisitions
Bottled water vs Tap water
• Growing emphasis on health and fitness• Improved customer awareness for proper
hydration• Hectic lifestyles• Convenience, portability of bottled water• Improved skin appearance, gives more energy• Increasing concern about tap water quality
and its chemical taste
SWOT ANALYSIS
HARMFULTo achieving the objectives
HARMFULTo achieving the objectives
HELPFULTo achieving the objectives
HELPFULTo achieving the objectives
INT
ER
NA
L
FA
CT
OR
SIN
TE
RN
AL
F
AC
TO
RS
EX
TE
RN
AL
F
AC
TO
RS
EX
TE
RN
AL
F
AC
TO
RS
STRENGTHS
i.Growing Demand and Consumption
ii.Increasing awareness
iii.Convenience, portability and bad
quality of tap water
STRENGTHS
i.Growing Demand and Consumption
ii.Increasing awareness
iii.Convenience, portability and bad
quality of tap water
WEAKNESSES
i.Distribution to remote locationsii.Awareness Creation and affordability
WEAKNESSES
i.Distribution to remote locationsii.Awareness Creation and affordability
Huge Growth PotentialLarge number of untapped marketsIncreasing Consumption patternIncreasing health conscious people
OPPORTUNITIES
Huge Growth PotentialLarge number of untapped marketsIncreasing Consumption patternIncreasing health conscious people
OPPORTUNITIES
Low Entry Barrier
THREATS
Low Entry Barrier
THREATS
SWOTAnalysis
Porter’s Five Forces
Bargaining Power Of Suppliers•Low Bargaining Power due to large number of existing suppliers presence•Able to extract the lowest prices due to the large no. of suppliers•Suppliers of packaging were equally competitive and quite numerous
Porter’s Five Forces
Bargaining Power of Buyers• Price Sensitivity• Negligible customer loyalty• Low Switching cost •Various products on offer, experimentation is high
Porter’s Five Forces
Industry Competitors•Three Major players•Fierce price competition•Differentiation in developing new products•Multiple product variants in each company’s portfolio•Delivery and channel management of utmost criticality
Porter’s Five Forces
Threat from SubstitutesNumerous substitutesCoffee, Tea, Milk, Beer & Soft DrinksHealthier and innovative enhanced waters or functional waters with flavours, added minerals and vitamins.
THANK YOU!!