The story of bottled water

Group2
Eszter Boda Diana DAvino Antonio Grieco Chia-chieh Chang Ron Lee Deepak Yadav

The issue of interaction between political and economic power

DEMOCRACY
 Rule of majority  egalitarian principles  redistribution of wealth issue  right to tax profits by exploiting of public good  Private companies willing to exploit public goods for profit

MARKET
 Performance criteria  Individuals meeting their needs for goods and services

Mineral and Thermal waters features

 Environmental relevance  Need of protection and conservation  Specific economic and productive function

Water and market

 Water is not only a physiological need  Difference between tap and bottled water  Many different brands and complex positioning  Huge investments in terms of image and reputation  Strict laws and regulations  Need to safeguard the consumers

Why not to drink a fresh glass of tap water?

Market-driven or Driving market ?

 From market-driven approach
 Identify, learn and adapt the market: healthy, pure and convenient.  Players in bottled water industry: company, manufacturer, distributor, retailer.

 Shape the market structure: Construction

 New players: fashion & design and scientific research group  To create and deliver the needs of particular customer

 Shape the market behavior

1. Create new customer preference  Safer and of higher quality than tap water, and a healthful alternative beverage to soft drinks or alcohol 2. Reverse existing customer preference  Bottled water has better taste and nutrition, and tap water is too raw to drink

Agency Controversy

Importance of Agencement

How to build value proposition

Adaption of the service dominant logic What can create value:
In the beginning: functional characteristics Now: psychological components
Significant role of branding and advertising

Iconic Brand - Evian

 Video Clip from Evian.com stressing Natural Purity & Origin  Hydro-geologist to support authenticity

Why is Evian Iconic?

History & Culture portrays authenticity
 Symbolism & Narrative Myth

Curative Qualities Untouched by Man, Perfected by Nature Authenticity as Self-expression:

 I like this because Im like that

Stylistic Consistency no other variations

Sociology of Translation?
 A series of transformation and understanding  Safety and Quality  Natural or Artificial  Healthy and Wealthy

Model of Diffusion?
First is the neglect of Tap water Illusion of bottled water superiority Drinking water became a social phenomenon
 Healthier > other beverages  Convenience  Status?

Model of Interessement
success of the industry

Actor who particularly legitimate

 Strategic legitimacy of a company reflects on the way in which a given organization will provide influence on the public opinion and through clever marketing and use of symbols will win over consumers  Evian: recognized internationally for the objectively beautiful advertisements  One of their recent products (which no doubt garners an even greater profit margin than the drinking water bottles themselves) as an aluminum bottle containing water- not for drinking, but for spraying as a refresher on the face

Actor who suffering from a lack of legitimacy?

 Institutional legitimacy focuses on the effects that the industry has on the sector, consumer, and world.  Dasani had to rebrand itself after a marketing fiasco when consumers discovered that the water in the bottles is actually just bottled tap water that Dasani purified  Rebranding solution: Dasani has introduced the PlantBottle a fully recyclable plastic bottle made partially from plant material (Environmental Leader, 2009) in hopes of reinventing its image.

What is the conception of business reflected through the indicators used by the key players?
 Variety of reasons for choosing a brand: family history, convenience, aesthetics  The 2011 Bottled Water Scorecard, a comprehensive examination of the questions: Where does the water come from?, Is it purified? How? and Have tests found any contaminants?  Among the ten best-selling brands, nine don't answer at least one of those questions.  18 percent of bottled waters fail to list the location of their source, and 32 percent disclose nothing about the treatment or purity of the water.

Thank you for your attention!