Fiji Water
Introduction
FIJI Water LLC is a U.S. based company, that market its famous brand in more than a dozen countries out of its bottling plant located in the Fiji Islands. The product concept was developed in the early nineties by David Gilmour, the Canadian-born owner and founder of Fiji’s renowned Wakaya Island Resort.1
As of 2008, FIJI Water marketed its bottled mineral water in about a dozen countries in North America, Asia, Europe and the Middle East. It was marketed as FIJI Natural Mineral Water in Europe and as FIJI Natural Spring Water in Australia. The two main markets for the product were the United States and Australia.
At the same time, the company’s relationships with the Fiji government were at the lowest point. The government accused FIJI Water of transfer price manipulations and seized hundreds of containers carrying FIJI brand. The company’s tax- free concession granted by the Fiji government for 13 years in 1995came to an end in October 2008 and the company will be required to pay corporate tax in Fiji. The new water resource tax, although much lower than the draconian 20-cents-a-litre excise, still will adding about FIJI$1 million to its cost every year. In other hand, the company was making efforts to live up to its good corporate citizenship claim by focusing on its contributions to the local communities.
In the following report you will find my selected analysis of the FIJI Water Case Study. I have chosen to respond to Question 2: What factors contributed to the marketing success of FIJI Water? And Question 5: Are the FIJI government's concerns about the "negative" contribution of the FIJI Water to the local environment justified? Does the company do enough to improve its relations with the FIJI government and the local community? What else should it do to improve those relations?
What factors contributed to the marketing success of FIJI Water?
1 James McMaster and Jan Nowak, “Natural Waters of Viti Limited-Pioneering a New
FIJI Water LLC is a U.S. based company, that market its famous brand in more than a dozen countries out of its bottling plant located in the Fiji Islands. The product concept was developed in the early nineties by David Gilmour, the Canadian-born owner and founder of Fiji’s renowned Wakaya Island Resort.1
As of 2008, FIJI Water marketed its bottled mineral water in about a dozen countries in North America, Asia, Europe and the Middle East. It was marketed as FIJI Natural Mineral Water in Europe and as FIJI Natural Spring Water in Australia. The two main markets for the product were the United States and Australia.
At the same time, the company’s relationships with the Fiji government were at the lowest point. The government accused FIJI Water of transfer price manipulations and seized hundreds of containers carrying FIJI brand. The company’s tax- free concession granted by the Fiji government for 13 years in 1995came to an end in October 2008 and the company will be required to pay corporate tax in Fiji. The new water resource tax, although much lower than the draconian 20-cents-a-litre excise, still will adding about FIJI$1 million to its cost every year. In other hand, the company was making efforts to live up to its good corporate citizenship claim by focusing on its contributions to the local communities.
In the following report you will find my selected analysis of the FIJI Water Case Study. I have chosen to respond to Question 2: What factors contributed to the marketing success of FIJI Water? And Question 5: Are the FIJI government's concerns about the "negative" contribution of the FIJI Water to the local environment justified? Does the company do enough to improve its relations with the FIJI government and the local community? What else should it do to improve those relations?
What factors contributed to the marketing success of FIJI Water?
1 James McMaster and Jan Nowak, “Natural Waters of Viti Limited-Pioneering a New