Professional Documents
Culture Documents
BOTTLED WATER
INDUSTRY
TEAM 4(PEPSICO)
Contents
Hard to Numerou
enter s
Fierce
Low Averag
e
1. Rivalry
members
ü New entrants need to overcome the
tremendous marketing muscle and
market presence of Coke, Pepsi and
others
ü Vast beverage distribution systems of
Coke and Pepsi enables them to have
intimate relationships with retail
4. Power of suppliers
Suppliers to the industry
- municipal water systems, spring operators,
bottling equipment manufacturers, deionization
etc.
Large bottlers
- able to purchase bottles as little as 5 cents pe
bottle
Regional bottlers
- have to purchase bottles as much as 15 cents
per bottle
Secondary packaging suppliers
5. Buyer Power
Principle Channels :
- Convenience store, Food stores,
Fountain, Mass merchandisers,
Vending machine
Bargaining power of buyer is high for
convenience store and supermarket
ü Required to compete aggressively on
price to gain access to shelf space for
low prices and slotting fees
Bargaining power of buyer is none for
vending
Industry Key Trends
Social increasing health concerns
Concerns about the quality of the water
Increase in demand for convenient
Economic World becoming a global
economy, increasing the market
competitors need to cultivate
international markets and make the most
of a global economy
to 200 countries
Nestl
and its price for a
e 24 bottle pack is
Pepsi about $5.01.
Coca Cola
Co. Coca Cola is in a
better position in
G e o g ra p h ic terms of both
C o v e ra g e
Global presence
(300 Countries)
and price (4.35$
Reasons why people prefer
bottled water
Recommendations