Competition in Bottled Water Industry Essay Example
But while water itself may be simple, the business of bottled water is not. It is big, complicated and competitive, having grown into an almost $ 9 billion a year business in the United States.
The business has been built in large part on savvy marketing, aimed at convincing consumers that not all water is created equal. The pitch seems to have worked.
In the last 30 years, bottled water has emerged from virtually nothing to become the No. 2 beverage in the United States, behind soft drinks. If its current growth patterns hold, bottled water will pass soft drinks in the next 10 to 15 years, said Gary A. Hemphill, spokesman for the Beverage Marketing Corp., a research and consulting firm.
While the bottled water industry's revenue has grown by almost 800 percent in the last 20 years, so has competition. Hundreds of brands large and small now fight for consumers' loyalty and attention. The branding of bottled water has relied almost exclusively on the perception that it is purer and healthier than tap water. Brands such as Crystal Geyser and Arrowhead use images of snow-capped mountains to promote their products. A key part of Coke's marketing strategy for its Dasani water, the No. 2 bottled water in the country, was to create a recognizable brand by inventing a name that sounds refreshing and designing a stylish cool blue bottle.
Still, real questions remain about the difference between tap and bottled water. Some critics say there is no evidence that bottled water is any better than tap water and that regulations are actually more lax for the bottled water industry.
But its perceived purity alone doesn't sway consumers. Bottled water has also evolved into a status symbol, and there are plenty of brands designed to tap into consumers' snob appeal, such as Voss and Fiji Water, which promise premium water at an equally premium price.
Snob appeal is what launched the bottled water industry, said Arthur von Wiesenberger, an industry consultant and
The business has been built in large part on savvy marketing, aimed at convincing consumers that not all water is created equal. The pitch seems to have worked.
In the last 30 years, bottled water has emerged from virtually nothing to become the No. 2 beverage in the United States, behind soft drinks. If its current growth patterns hold, bottled water will pass soft drinks in the next 10 to 15 years, said Gary A. Hemphill, spokesman for the Beverage Marketing Corp., a research and consulting firm.
While the bottled water industry's revenue has grown by almost 800 percent in the last 20 years, so has competition. Hundreds of brands large and small now fight for consumers' loyalty and attention. The branding of bottled water has relied almost exclusively on the perception that it is purer and healthier than tap water. Brands such as Crystal Geyser and Arrowhead use images of snow-capped mountains to promote their products. A key part of Coke's marketing strategy for its Dasani water, the No. 2 bottled water in the country, was to create a recognizable brand by inventing a name that sounds refreshing and designing a stylish cool blue bottle.
Still, real questions remain about the difference between tap and bottled water. Some critics say there is no evidence that bottled water is any better than tap water and that regulations are actually more lax for the bottled water industry.
But its perceived purity alone doesn't sway consumers. Bottled water has also evolved into a status symbol, and there are plenty of brands designed to tap into consumers' snob appeal, such as Voss and Fiji Water, which promise premium water at an equally premium price.
Snob appeal is what launched the bottled water industry, said Arthur von Wiesenberger, an industry consultant and