Instructor: Prof. Aharon Hibshoosh Group 8: Georgi Petrov ID# 8538
Dan Hong Cao
Chaldas Kamila
Samuthphong Kornravee
Ruslan Kyzy Dinara
Assignment–Case Study-Perrier
Synopsis
Perrier is globally known for its quality due to low mineral content (particularly sodium). Perrier plans being perfect anytime by providing the best tasting sparkling water on the market. They are not only marketing for the rich and/or famous, they want to be an everyday thirst quencher. Perrier vision is to be the number one sparkling mineral water in the world. Perrier’s mission is to offer bottled water to meet consumer needs anywhere, anytime.
In May of 1989 in an issue of Fortune the company was depicted as one of six companies that compete best. Fortune quotes, “These are companies you don’t want to come up against in your worst nightmare. In the business they are in, they amass crushing market share.” Perrier controlled 24% of the total US bottled-water business. Even competition like Coca-Cola, PepsiCo, and Anheuser-Busch was hardly affecting the sales of Perrier. After all we can conclude that Perrier is a competitive business that also understands the importance of how business is conducted.
In February 1990 news reached Perrier’s executive suite that traces of benzene had been found in its bottled water. Ronald Davis, President of Perrier Group of America ordered an intensive recall of all Perrier bottles in North America. Few days later Perrier S.A. expands the recall to the rest of the world. At first the excuse given by Perrier officials was that the contamination occurred because an employee mistakenly used cleaning fluid containing benzene to clean the production-line machinery that fills bottles for North America. Perrier now finally admits that benzene naturally occurs in Perrier water but the problem was now visible because the workers forgot to replace the filter. Then Perrier faced a big problem.