Nestlé-Danone and the Bottled Water Sector
Nestlé-Danone and the bottled water sector 1) Presentation of the structural features of the bottled water industry. a) strategic segmentation.
There are four different family of product in the bottled water market : * mineral water ; they are spring waters with specific properties such as medical treatment. They cannot be processed. * spring water ; they are naturally pure and from groundwater as mineral water. No treatment shall be given to them. They are on average three times less expensive than natural mineral waters. * Table water ; they designate tap water bottling. The treatments are tolerated here especially for gasification and of course to ensure its potability. * Home and office delivery (HOD); the Home and Office Delivery is a growing segment, accounting for 28% of the volume of bottled water.
Strategic segmentation of bottled water is relatively simple even if the difference between spring water and natural mineral water is insignificant. Indeed it is distinguished only through particular virtues granted to it. b) key success factors.
Global consumption of bottled water has exploded in recent years, rising from 83 billion liters in 2001 to 138 billion in 2003, representing a 66% increase in just two years. Several factors are responsible for this tremendous growth.
The first reason for this success is linked to the consumption habits of buyers of bottled water in developed countries. In fact,consumers has a bad image of tap water, they prefer to turn to bottled water to which they trust. In fact, tap water is a victim of the mistrust of consumers in developed countries, because tap water is considered as not being pure and natural.
The second reason is the ever increasing demand for bottled water in emerging markets, the only alternative to polluted water which is present in these countries. In addition, the sale of bottled water is often less expensive than the rehabilitation of the sanitation network, so the sale of
There are four different family of product in the bottled water market : * mineral water ; they are spring waters with specific properties such as medical treatment. They cannot be processed. * spring water ; they are naturally pure and from groundwater as mineral water. No treatment shall be given to them. They are on average three times less expensive than natural mineral waters. * Table water ; they designate tap water bottling. The treatments are tolerated here especially for gasification and of course to ensure its potability. * Home and office delivery (HOD); the Home and Office Delivery is a growing segment, accounting for 28% of the volume of bottled water.
Strategic segmentation of bottled water is relatively simple even if the difference between spring water and natural mineral water is insignificant. Indeed it is distinguished only through particular virtues granted to it. b) key success factors.
Global consumption of bottled water has exploded in recent years, rising from 83 billion liters in 2001 to 138 billion in 2003, representing a 66% increase in just two years. Several factors are responsible for this tremendous growth.
The first reason for this success is linked to the consumption habits of buyers of bottled water in developed countries. In fact,consumers has a bad image of tap water, they prefer to turn to bottled water to which they trust. In fact, tap water is a victim of the mistrust of consumers in developed countries, because tap water is considered as not being pure and natural.
The second reason is the ever increasing demand for bottled water in emerging markets, the only alternative to polluted water which is present in these countries. In addition, the sale of bottled water is often less expensive than the rehabilitation of the sanitation network, so the sale of