Fiji water case

Group 12:
Maarit Elina Myrberg(09E5071)
Mitranjan Bhaduri(0911172)
Nishant Kumar Ojha(0911175)
Nithin Chandra G.S(0911175)
 Is this case any different?
• Unlike previous cases company has already been undertaking many CSR initiatives,

but gaps remain.

• Where are the gaps?

Degree of 100%
Sustainability

Absolute Gap •Responded in early stages

Stakeholder •Carbon negative campaign

expectations •Saving the rainforests
Strategic Gap •Optimizing logistics
•Employ local workforce
Industry
standards •Disaster relief funds
•Community development
Tactical Gap
•Fiji water foundation

Current CSR activities •1% sales commitment

0%
 Why the gaps?
• Possibly because of the asymmetric nature of an “irresponsible” vs. “responsible”
corporate behavior?

• Is it a phenomenon common across the whole Bottled Water Industry?

• How aware are the stakeholders (especially the influencers and the consumers) of FIJI
Water’s CSR initiatives?

• Is there a fit between Fiji Water and the causes that it supports?

• Do the stakeholders see its response as a proactive rather than a defensive,

competitive mechanism? Do the stakeholders view it as a case of “selling” CSR?

• Do the consumers associate themselves with the company’s CSR initiatives?

 Tactical Gap
(Current CSR <--> Industry Standards)
• Comparison of CSR initiatives across bottled water segments
Parameter Fiji water Aqua Pacific Evian Aquafina
(Fiji Artesian water) (Fiji Artesian water) (Spring water) (purified tap water)
Bottles used 100% recyclable and 10% No concrete 100% recyclable bottles 100% recyclable bottles
reduction in bottle plastic commitments Eco-Fina bottle – 50% less
plastic than 2002
Environmental ISO 14001 certified plants No Concrete ISO 14001 certified plants None
Certification commitments and Source declared the
Official UNESCO Ramsar site
Community based Fijiwater foundation Works in sanitation and None None
CSR initiatives safe drinking water
Recycling 95% of plastic waste inside No concrete 95% of plastic waste inside Recycling support to city
the plant recycled. commitments the plant recycled corporations
Other initiatives 1% of global sales to support None Recycling award points Distributed production
environmental across locations
Communication Technical parameters used, Not taken the CSR Use rail instead of truck etc: Other ways to make the
messages lacking conviction initiative seriously Easy to understand msg 50% impact like Aquafina

• Tactical Gap non existent in the Fiji Artesian water segment, but hit on virtue of being the market leader
• On par or higher than the industry CSR standard, but lacking in candidness of the communication message
• Argument of decentralized economic development could be well quantified in the marketing campaign.
 Strategic Gap
(Current CSR <--> Stakeholder Expectations)
Addressing concerns of the consumers and the civil society
• “Overselling” of “every drop is green” to be avoided
• If possible, partnership with other major players in the bottled water industry to come up
with an appropriate response, on all fronts : R&D, Operations and Marketing
• Third party (preferably a well known NGO) audit of “Carbon Negative” claims (if true)
HIGH
• Segment the market
Probability of this
combination existing is low.
 Quality of tap water A
Position primarily against
other beverages (not Tap
However, if it exists then an
aggressive marketing
water) highlighting health
and environmentalw strategy in competition to
 Level of civil society activism and consumer awareness advantages
both tap Water as well as
a other beverages should be
adopted
(w.r.t environmental and health concerns) r
LOW Quality of tape water HIGH
• Differentiated Positioning Strategies:
n
• In markets under quadrant 1, development of Fiji could be Mixed Strategy: Needn’t do eMaintain Status Quo,
any negative marketing
Compete aggressively with

tried as a plank for “cause marketing”

against Tap Water, Focus on
the benefits of exclusivity
s water and other bottled
Tap
water
and convenience
s

LOW
 Strategic Gap
(Current CSR <--> Stakeholder Expectations)
Addressing concerns of the Fiji Governement
• How much would a tax of 0.33 cents per litre impact? How much of this tax can be passed
onto distributors, retailers and the consumers?
 Absolute Gap
(Current CSR <--> Sustainability)
We use  WRI/WBCSD Greenhouse Gas Protocol to measure our carbon footprint. Reviewed by ICF International, a global
leader in analyzing emissions inventories and providing advice on climate strategy

Vs
Treehugger.com, Reader poll:“Can Fiji Water Be Green?”

Winning Answer “No; it is still ‘fundamentally, inherently and inalterably unconscionable.’ ”

• Closing the loop in the social/ecological support system and communicating the message in easily understandable form.
• Sustaining the use of PET bottles
– R-PET a solution? Market at a higher price point.
– Investments in recycling efforts, reverse supply chain.
• Sustained extraction of artesian sources
– Could Fiji water commission a study to quantify sustainable extraction?
• Issue of moving water across continents
– Cannot be avoided completely. Can you identify alternate locations? Can other efforts offset the cost?
• Issue of energy use
– Can Fiji water completely switch to renewable energy?(Not met the 50% target)
Thank you