Competition in the Bottled Water Industry in 2006

Group E

Objective
Analysis brings out the relative comparison between the major players of the global bottled water industry including heavyweights such as Coca Cola, Nestle and Pepsi co.

The various strategies being undertaken and the prevalent market norms.

Facts and figures

Worlds most attractive beverage categories $62 billion Revenue Per Capita Consumption 25 gallons in US Forecast to grow by 30% in 2005-10 Controlled by three major players Coca-cola, Pepsico, Nestle Local minor players

Stratgies Employed
Innovative product variation Lowered prices in developed markets New market penetration Strategic agreements Acquisitions

Bottled water vs Tap water

Growing emphasis on health and fitness Improved customer awareness for proper hydration Hectic lifestyles Convenience, portability of bottled water Improved skin appearance, gives more energy Increasing concern about tap water quality and its chemical taste

SWOT ANALYSIS
HELPFUL
To achieving the objectives

HARMFUL
To achieving the objectives

STRENGTHS i. Growing Demand and Consumption ii. Increasing awareness iii. Convenience, portability and bad quality of tap water

WEAKNESSES i. Distribution to remote locations ii. Awareness Creation and affordability

INTERNAL FACTORS

SWOT Analysis
EXTERNAL FACTORS

Huge Growth Potential Large number of untapped markets Increasing Consumption pattern Increasing health conscious people
OPPORTUNITIES

Low Entry Barrier THREATS

Porters Five Forces

Bargaining Power Of Suppliers Low Bargaining Power due to large number of existing suppliers presence Able to extract the lowest prices due to the large no. of suppliers Suppliers of packaging were equally competitive and quite numerous

Porters Five Forces

Bargaining Power of Buyers Price Sensitivity Negligible customer loyalty Low Switching cost Various products on offer, experimentation is high

Porters Five Forces

Industry Competitors
Three Major players Fierce price competition Differentiation in developing new products Multiple product variants in each companys portfolio Delivery and channel management of utmost criticality

Porters Five Forces

Threat from Substitutes
Numerous substitutes Coffee, Tea, Milk, Beer & Soft Drinks Healthier and innovative enhanced waters or functional waters with flavours, added minerals and vitamins.

THANK YOU!!