Competition in the Bottled Water Industry in 2006

Group E

• 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

To achieving the objectives

To achieving the objectives

STRENGTHS i. Growing Demand and Consumption ii. Increasing awareness iii. Convenience, portability and bad quality of tap water

WEAKNESSES i. Distribution to remote locations ii. Awareness Creation and affordability


SWOT Analysis

Huge Growth Potential Large number of untapped markets Increasing Consumption pattern Increasing health conscious people

Low Entry Barrier THREATS

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 Substitutes
 Numerous substitutes  Coffee, Tea, Milk, Beer & Soft Drinks  Healthier and innovative enhanced waters or functional waters with flavours, added minerals and vitamins.


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