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Team 3: Bottled Water Case Study
Case Study:
Bottled Water Industry
Team 3
James Barlow, Julianne Schneider, Robyn Sumner & Katie Austin
GBA 490
Dr. Drnevich
26 March 2008
Team 3: Bottled Water Case Study 1
EXECUTIVE SUMMARY
The strengths of The Coca-Cola Company’s Dasani brand include its availability and
convenience, prominence of the parent company, geographic coverage, financial stability, assets,
distribution channels, and image of social responsibility. Dasani’s availability and convenience
stems from the fact that the brand is virtually in every supermarket, convenience store and
vending machine. Consumers are bombarded with the brand, which makes it very recognizable
and well known. Its recognition factor is partly due to the great success of its parent company,
since The Coca-Cola Company is so well established and respected in the beverage industry.
Another strength is Dasani’s geographic coverage. It is available in 200+ countries in
localized flavors, which further extends the brands marketability. Dasani is obviously financially
stable, as it is backed by one of the most successful beverage companies in the industry. Its
financial stability allows for high cost advertising, marketing, and development. As part of the
Coca-Cola family, Dasani reaps the benefits of readily available assets and distribution channels.
Assets include water sources, processing systems, and bottling and manufacturing suppliers.
Assets like bottling and manufacturing equipment can be used interchangeably among several
types of beverage productions, which saves Dasani from having the purchase brand new
equipment or separate bottle and manufacturing suppliers. Its largest distribution channel is
supermarkets, which also sell several different types of beverages in The Coca-Cola Company
family. Transporting a full load of company owned brands, including, Dasani, is cheaper than
transporting each individually.
Among Dasani’s weakness are its incurable environmentally unfriendly practices.
Though Dasani strives to be socially responsible, the industry will never rid itself of a wasteful
image. Therefore, Dasani is reaching for an unattainable goal. A second weakness is the
reputation Dasani gained in 2004 after it was “exposed” for simply bottling tap water. Even
though Dasani’s water was indeed tap water, they took the fall for all firms bottling “purified”
water and have not been able to shake the reputation since.
The industry’s opportunities include growth, new entrants, acquisitions, and product
innovation. Since the last five years have proven to be extremely successful, new entrants are
likely to enter the market. New entrants, however, may face problems competing with larger,
more established firms. They must also be able to keep up with the evolving trends of the
industry. For larger firms, acquisitions of smaller or less successful firms may be made to spread
Team 3: Bottled Water Case Study 2
market share. Innovation is of the utmost importance. The current trends are flavored water,
vitamin enhanced water, and sports or energy drinks. In order for a firm to succeed, they must
be able to keep up with competitors.
Industry threats include substitutes, other beverage competition, government regulation,
and economic and environmental effects. Since tap water is bottled water’s only substitute, there
is little need for concern, however, many restaurants, homes, and employers wishing to be more
environmentally friendly are doing away with bottled water and opting to serve less wasteful and
less expensive tap water. Other competition comes from sodas, juices, coffees, and teas, which
can ultimately decrease the bottled water market. Stringent government regulations on bottled
water processing already cause increased costs, but even more strict regulations would surely
damage the profitability of bottled water firms. Economic factors, like the ever increasing price
of oil effects the costs of plastic bottle making and transportation fuel expenses. Lastly, the
industry incurs negative environmental effects, such as waste and the lack of recycling.
The persistently high prices of oil mean that bottled water companies will be facing
higher costs, not only in transporting their product, but in producing plastic bottles which are
made from petrochemicals. As such it is very important for these companies to their packaging
as efficient as possible. It would be worth the effort to invest in developing bottles that use less
plastic but are still sturdy.
Sellers of bottled water face strong competition from other bottled water companies, soft
drinks, filtration systems, and even tap water. As such it is very important for a company that
sells bottled water to distinguish its brand of water from all of these competitors in some way,
whether it be through the development of a unique image, availability at a multitude of locations,
or the addition of vitamins, minerals, or flavors.
The vast amount of plastic bottles that are thrown away every day could be a serious
detriment to the environment. Thus, a bottled water company that takes some steps to limit its
detrimental environmental impact and develop an environmentally friendly image might find
itself at an advantage. Companies should support recycling of bottled water bottles, either by
implementing a program where bottles are returned to the company for recycling or reuse, or by
implementing a pro-recycling advertising campaign.
Thus far the only participants in the bottled water market have been soft drink producers
or companies that have been in the business for a long time. One group that has the ability to
Team 3: Bottled Water Case Study 3
exploit the growing demand for bottled water but has not yet is brewers. When hurricane
Katrina hit the gulf coast, Anheuser-Busch responded by donating upwards of five million cans
of drinking water to the devastated regions. The company was able to smoothly and efficiently
convert its breweries to the packaging of water, and the company could make a financial effort
similar to this humanitarian effort. In this case they used cans, but they could just as easily use
glass bottles. Such a venture could market bottled water to previously untargeted consumers,
and brewers could even make tie-ins with their existing alcoholic beverages.
Perhaps the most important and most difficult factor in the success of a producer of
bottled water is image. In order to be profitable a company must have some quality that makes it
stand out from competitors, whether it be superior purity, superior taste, addition of flavors,
addition of vitamins and minerals, a strong marketing campaign promoting a unique image, or
even simple availability and convenience. In order to succeed, a bottled water company must
have one or more of these qualities.
Team 3: Bottled Water Case Study 4
INDUSTRY & COMPETITOR ANALYSIS
Description of Industry
In the late seventeen hundreds it became fashionable to visit natural mineral springs to
either drink of the “healthful” waters or to bathe in them. The wealthy promoted and gathered
here or at spas which catered to their needs. In 1767, the waters of Jackson’s Spa in Boston were
bottled and sold to satisfy a rapidly growing demand for therapeutic miracles. Waters of a
mineral spring near Albany, NY were bottled commercially in 1800 and by 1820 the first
Saratoga Springs bottled water was sold.
In 1966, Groupe Danone was established through the merger of two of France’s leading
glass makers. Groupe Danone diversified outside of glass containers in 1966 when the company
acquired Evian, France’s leading brand in bottled water. Bottled water became attractive in the
U.S. in the late 1970’s when Perrier began selling their bottled water in the U.S. Perrier
established the modern consumer environment for bottled water. The bottled water market is
now driven by consumers rather than suppliers (Sorensen, 1999). Though its popularity has
changed over the years, it has had constant growth in the last ten years. Today, bottled water
consists of sparkling and still flavored and unflavored water.
In 2006, the United States bottled water market generated total revenues of $15.6 billion,
representing a compound annual growth rate (CAGR) of 8.1% between 2002-2006. During the
same time period, market consumption volumes increased with a CAGR of 8.6% totaling 8.3
billion gallons of water in 2006. To compare, 1977 sales totaled $250 million and consumption
equaled 350 million gallons. Considering the industries continued growth and success in the last
20 years, the future of the bottled water industry is quite promising (Sorensen, 1999).
Competitive Analysis
The three major players in the bottled water industry include PepsiCo, Inc., Nestle, and
The Coca-Cola Company. In 1987, PepsiCo Inc. attempted to enter the bottled water market but
was unsuccessful until 1997 when they introduced Aquafina. In 1992, Nestle Waters acquired
Perrier and became the world’s largest seller of bottled water. The last major competitor in the
bottled water industry is The Coca-Cola Company. The Coca-Cola Company did not enter the
market until 1999 with Dasani. In 2006 Nestle held the largest U.S. market share at 30.5%.
Leading in second was PepsiCo, Inc. with 13.8% market share. Lastly, The Coca-Cola Company
held 11.9% of total U.S. market share (“United States - Bottled Water”).
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Buyer Power: Moderate
Strong brands tend to weaken buyer power since retailers need to stock brands that are
most popular with their own customers.
Since bottled water is a sub-segment of the soft drinks market, its importance to retailers
is not very great, especially for the more powerful supermarket chains, which sell a wide
variety of food and drink products.
Supplier Bargaining Power: High
If companies do not own land that has an aquifer suitable for exploitation then the
landowners can create a bidding war between competing companies.
With the importance of water’s raw material quality and the fact that there is no substitute
input, it is not possible to use utility-supplied water as a substitute for underground
sources, making the product lose its unique selling point.
Entry Barriers: Low to Moderate
Since brand names are highly important in this industry it would be difficult to convince
major retailers for shelf space.
New entrants may find it difficult to compete with prominent, multinational brands that
already exist.
The strong growth in the U.S. market within the last five years should encourage new
entrants.
Substitute Products: Low
The only substitute for bottled water is tap water.
Competitive Rivalry with Sellers: Moderate
Factors such as switching costs and high storage costs tend to intensify rivalry.
Bottled water is differentiated by its composition and attributes, but also benefits from
investment and branding.
Forces that Affect Demand & Factors that Affect Cost
Forces that affect demand
Geographic locations
Availability/convenience
Consumer preferences
Factors that affect costs
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Raw material quality affects costs since it must be free of various criteria, like
contamination, and must have specified mineral content.
Water source purchases or yearly accessibility fees
Bottling and manufacturing equipment or suppliers
The price of oil, which is used in plastic bottle production and transportation fuels
High use of resources and energy can also be costly (“Bottled Water in the United States:
Industry Profile”)
Profitability
The bottled water industry has a relatively stable environment, with industry impacting
changes few and far between. The main basis for competitive advantage is governance. The
bottled water industry has excellent distribution chain operations with equipment specific to the
industry. Industry competitors compete through market presence, with an oligopoly controlling
the majority of the market through persistent acquisitions. This type of operational context is
called ordinary economizing and includes well established competitors and customers (Porter,
1980).
Key Factors for Survival & Key Success Factors
There are a host of key factors for survival. Among them include inputs, distribution and
name recognition. Bottled water industry inputs include the natural or public sources from
which the water is bottled, treatment equipment and bottling and packaging suppliers (“Types
and Treatment of Bottled Water”). Firms purchase or pay yearly amounts to access springs or
municipal water systems. Firms must also decide what processing steps to apply to the water in
order to meet FDA guidelines. While firms process their own water, bottling and packaging
suppliers are readily available and more cost effective than bottling and packaging in house.
Distribution channels are a major factor in the survival of the bottled water industry. In
2006, supermarkets comprised of the largest sales volume at 71.60%. Supermarkets are highly
aware of their shelf space’s value and must believe that stocking a specific firm is worth
bumping another firm to a less desirable location. In the end, the retailer will likely stock the
firm whose water is most preferred by its customers at the prime shelf location. Another
distribution channel is convenience stores. Although convenience stores make up a small
percentage of sales volume, they allow customers to quickly view several different chilled brands
of bottled water.
Team 3: Bottled Water Case Study 7
Lastly, name recognition is important for survival because of the large oligopoly in the
industry. Although a large industry growth rate is encouraging to new entrants, they must be
able to battle with more prominent brand names that supermarkets are more likely to support
(“Bottled Water in the United States”).
Key success factors include product offering, low costs, strong network of distributors,
and utilization of assets. Since the bottled water industry is composed of sparkling and still
flavored and unflavored water, there is much room for product differentiation within each
category. Within the four categories, there are numerous “types” of bottled water, such as
spring, mineral, and purified. It is important for bottled water firms to differentiate their
categories as much as possible to satisfy customers. Although still unflavored water has the
highest volume sales in the U.S., new category types and flavors are frequent and firms must
keep up with their competitors or they will fall behind. The bottled water industry must also
strive to maintain low costs, which is relatively easy since water sources and processing
equipment are cheaply obtained and bottling and packaging suppliers are readily available and
willing to do business.
The industry’s network of distributors can have a large affect of the success of the firm.
Since supermarkets have the highest bottled water sales volume, it is imperative to gain good
relations with them. Furthermore, competitive contracts with schools and arenas have the ability
to bring in hundreds of thousands in bottled water profits if successful. The last key success
factor is the utilization of assets. When assets are used effectively, the firm will be able to
produce more bottled water and distribute it at a higher rate (“United States - Bottled Water”).
Opportunities, Threats & Trends
The bottled water industry has several opportunities. Positive sales growth in the U.S.
hints that there is a likelihood of new entrants. While barriers to entry are not monetarily high,
new entrants will need to differentiate their products from the larger firms, like Nestle, PepsiCo,
Inc., and The Coca-Cola Company. Conversely, the acquisition of smaller firms is an
opportunity for larger firms (“United States - Bottled Water”). Firms should also take advantage
of the growing list of flavored waters and sports drinks, thus focusing on firms’ innovation
through research and development teams.
Industry threats include substitutes, other beverage competition, government regulation,
and economic and environmental effects. Tap water, bottled water’s only substitute, is a large
Team 3: Bottled Water Case Study 8
threat because of its accessibility and low cost to consumers. Many restaurants, employers, and
homes opt to save money, using tap water instead of bottled water. Other beverages, such as
sodas, juices, coffees, and teas also pose a threat to the industry because they have the potential
to reduce the bottled water market. Another threat is further government regulations for
processing. Different types of water call for different types of mandatory processing.
Regulations are already rigid and additional regulations could increase the cost of bottled water
or decrease firms’ profitability because of more advanced technology and equipment.
A major economic factor threatening the industry is the price of oil, which is used to
make plastic bottles and fuel trucks to transport beverages. According to Lopes (2008), plastic
bottle production requires around 17 million barrels of oil per year. Additionally, the cost of
transportation is on the rise, negatively affecting distribution costs. Since the price of oil is
continually rising, firms’ profits will likely take a significant cut in the coming years. Lastly,
environmental effects are a large threat to the image of the bottled water industry. Only 13% of
water bottles are reused or recycled and approximately 30 million bottles are thrown in landfills
daily. Continued pressure from environmental activists may have a negative affect on firm’s
reputation or even force them to change their bottling procedures (Lopes, 2008).
Common industry trends include tremendous growth and increasing product lines. New
product lines feature vitamin enhanced waters and new flavors of still water and sports drinks.
Additionally, an increasingly environmentally aware society will force industry firms to become
more socially responsible.
FIRM ANALYSIS
Description of the Firm
Dasani is a brand of The Coca-Cola Company, the world's largest beverage company.
The Coca-Cola Company, recognized as the world's most valuable brand, markets four of the
world's top five soft drinks, including Coca-Cola, Diet Coke, Fanta and Sprite. It also produces a
wide range of other beverages, including other diet and light soft drinks, waters, juices and juice
drinks, teas, coffees and sports drinks (“United States - Bottled Water”).
The company’s mission statement is “To refresh the world... in body, mind, and spirit.
To inspire moments of optimism... through our brands and our actions. To create value and
make a difference... everywhere we engage.” Their vision states that their goals or objectives to
achieve sustainable growth include “People: Being a great place to work where people are
Team 3: Bottled Water Case Study 9
inspired to be the best they can be. Planet: Being a responsible global citizen that makes a
difference. Portfolio: Bringing to the world a portfolio of beverage brands that anticipate and
satisfy peoples' desires and needs. Partners: Nurturing a winning network of partners and
building mutual loyalty. Profit: Maximizing return to shareowners while being mindful of our
overall responsibilities” (“Mission Statement and Vision”).
The Coca-Cola Company’s highest business objective is to provide top-quality products.
Keeping their quality promise requires consistent execution by the Company, bottling partners,
distributors and retailers. This commitment extends to all of their products. Like all beverages
produced by The Coca-Cola Company, their water brands are manufactured and packaged
according to strict safety and quality requirements. In addition to local, state and federal
regulations, the Coca-Cola system requires certain global operating standards through The Coca-
Cola Quality System, which helps ensure quality in everything they do (“Our Coca-Cola
System”).
Quality compliance throughout The Coca-Cola Quality system is verified by periodic
onsite audits conducted by The Coca-Cola Company and, in some cases, third-parties. Through
multiple treatment steps including disinfection, filtration, purification, and routine monitoring of
equipment and water quality, The Coca-Cola Company ensures that purified Dasani is produced
in accordance with FDA and the companies own additional quality standards. Even though
Dasani is produced and packaged in different locations, the same taste and quality is guaranteed.
Before a bottle of Dasani is ready for distribution to consumers, eight key activities take place as
part of the manufacturing process. Though initial water treatment and interim processing steps
may vary slightly depending upon plant location and source water quality, bottled water
production generally involves the same processes (“Our Coca-Cola System”).
As stated earlier, The Coca-Cola Company produces a host of beverages. Dasani, the
firm’s most popular still water brand includes the following beverages: unflavored Dasani,
Dasani Plus (a vitamin-enhanced flavored water, which comes in Refresh + Revive: Kiwi
Strawberry Flavor, Cleanse + Restore: Pomegranate Blackberry Flavor, and Defend + Protect:
Orange Tangerine Flavor), Dasani Sensations (Lemon Lime, Mixed Berry and Unflavored
sparkling water) and Dasani Flavors (Grape, Lemon, Raspberry and Strawberry flavored water
beverages are naturally flavored and lightly sweetened to provide a water alternative without
calories or carbohydrates) (“Brand Fact Sheets”).
Team 3: Bottled Water Case Study 10
The company has 90,500 associates across the world and operates in 200+ countries
(“Behind the Brand”). The market segmentation of bottle water consumption consists of: Europe
52.9%, United States 25.6%, Asia-Pacific 15.2% and the rest of the world 6.3% (“United States -
Bottled Water”).
Aside from the millions of customers and thousands of employees worldwide, The Coca-
Cola Company had 305,630 shareowner accounts as of February 22, 2008 (“Coca-Cola Co
(KO)”). The largest direct holders were Donald Keough, Allen Herbert, Isdell Neville, Gary
Fayard, and Alexander Cummings. The largest institutional holders included Berkshire
Hathaway, Inc., Capital World Investors, Suntrust Banks, Inc., State Street Corporation, and
Barclays Global Investors UK Holdings, Ltd. (“Coca-Cola Co (KO)”).
Observed Strategies & Basis for Competitive Advantage
One of Dasani’s observed strategies is a new socially responsible focus, which reflects its
parent company’s new initiative. In March 2008, The Coca-Cola Company announced that its
2008 Olympic Torch Relay presentation will be carried out by torchbearers “who make a
difference in society by playing active roles in environmental issues, primarily in the areas of
water conservation, recycling, and energy management and climate protection” (“New
‘Environmental Champion’ Torchbearers”). Additionally, the brand has committed itself to
enhanced resource efficiency, including decreasing the amount of plastic in bottles by 30%
(“FAQ”).
Dasani also has a strategy to continually diversify their bottled waters. In the past few
years, the brand has produced several different types of water in order to cater to people trying to
be healthy, but looking for water with a different flavor. The latest result was Dasani Plus, a
vitamin-enhanced flavored water beverage with zero calories per serving. The beverage comes
in three varieties: Refresh + Revive: Kiwi Strawberry Flavor, Cleanse + Restore: Pomegranate
Blackberry Flavor, and Defend + Protect: Orange Tangerine Flavor. Each flavor provides
different vitamins. Dasani also created Sensations, which is a sparkling water in Lemon Lime,
Mixed Berry and Unflavored flavors (“Brand Fact Sheets”).
The bottled water industry has a relatively stable environment, as such, The Coca-Cola
Company’s basis for competitive advantage is governance. To a lesser degree, the brand also
uses flexibility to set or keep up with the industry trends early on. Dasani has been able to
Team 3: Bottled Water Case Study 11
maintain a sustainable competitive advantage through its parent’s established brand name and
well established supply and distribution chain management.
Assessment of Resource/Capability Strengths & Competitive Weaknesses
One of The Coca-Cola Company’s strengths is the availability and convenience of its
products. Dasani is stocked in convenience stores, supermarkets, vending machines, and several
other locations, which makes consumers very familiar with its products. Furthermore, a quick,
portable water purchase allows consumers to continue with the common “grab and go” lifestyle.
Thanks to the prominence of its parent company, Dasani has worldwide geographic coverage in
200+ countries and is seeing increasing sales volume rates.
Moreover, because of The Coca-Cola Company’s success, Dasani is sitting on an
extremely financially stable parent company, which allows for extra spending on advertising,
marketing, development, or even a serve as a financial cushion should Dasani’s sales decrease
dramatically for an unforeseen reason. Also, since the parent company is so large, Dasani has a
great deal of physical assets, namely bottling and manufacturing equipment that can be used for
different beverage brands. This interchangeability adds to the efficiency of production. The
large brand offering of The Coca-Cola Company also aids in decreasing transportation costs
when a full load of several beverages is transported. Lastly, as previously stated, Dasani and its
parent company’s corporate responsibility initiative reflects a positive image upon the firm,
which may ultimately lead to an increase in environmentally conscious consumers and increased
consumer loyalty.
One competitive weakness is that no matter how much effort Dasani puts into being
socially responsible, it will always be viewed as a wasteful firm. Even though plastic bottles are
recyclable, a very small percentage is actually recycled, resulting in thousands of bottles bring
dumped in the trash every day. Another weakness is the negative headlines in 2004, “exposing”
Dasani for simply bottling tap water. Even though Dasani’s water was indeed tap water, they
took the fall for all firms bottling “purified” water. A second event that same year caused Dasani
to recall 500,000 water bottles in the U.K. because of illegal levels of bromate. Bromate, a
chemical formed in the manufacturing process, has no immediate danger but can increase
chances of cancer after prolonged exposure. Though no one was injured, Dasani’s already
tarnished image was dealt another blow (“Coke recalls controversial water”).
Team 3: Bottled Water Case Study 12
Analysis of Strategic & Financial Performance
The bottled water industry in the United States produced total revenues of $15.6 billion in
2006. The industry generated revenues of $32.2 billion in Europe and $2.8 billion in the Asian-
Pacific market. The market continues to grow. Between 2002 and 2006 the United States
experienced a 8.1% compound annual growth rate. During the same period, the market grew 4%
in Europe and 14.9% in the Asia-Pacific region. Between 2006 and 2011 the market is expected
to grow 8.2% in the U.S., 4.3% in Europe, and 15.1% in Asia and the Pacific (“United States –
Bottled Water”).
Sales of unflavored water make up the biggest part of the market, producing 89.6% of the
market’s revenues. Sparkling water makes up the next largest segment with 7.2%, flavored
water makes up 0.6% of the market, and sparkling flavored water makes up the remaining 2.6%
(“United States – Bottled Water”).
In the U.S. bottled water market Coca-Cola holds 11.9% market share, following Nestle
at 30.5%, and PepsiCo at 13.8%. Coca-Cola Co. generated total revenues of $28,857,00 in 2007,
with a net income of $5,981,000, giving it a profit margin of 20.7% (“Coca-Cola Co (KO).”)
Coca-Cola attributes 11% of its income in 2007 to a segment including juices, juice drinks, and
waters (“The Coca-Cola Company (KO): Form 10-k.”).
The Coca-Cola company continued to pursue the bottled water market by adding its
Dasani Plus line, and by purchasing Energy Brands Inc., the producer of vitaminwater, fruitwater
smartwater, and vitaminenergy (“The Coca-Cola Company (KO): Form 10-k.”).
Assessment of Major Issues & Evaluation of Strategic Options & Alternatives
Plastic is made from petrochemicals, meaning that when the price of oil goes up the cost
of producing plastic bottles goes up in addition to adversely affecting the price of transportation,
cutting into the profit margins of water bottlers. Sellers of bottled water also face staunch
competition from other water bottlers, as well as from soft drinks, filtration products, and tap
water. Water bottlers should keep in compliance with government regulations at all times. If
news of even a small breach reaches the public it could have a permanent detrimental impact on
a company’s image. Water bottlers should also be aware of the vast number of cast off water
bottles that are ending up in landfills. Apparent unconcern for the waste left behind by their
products could adversely impact a company’s image.
Team 3: Bottled Water Case Study 13
A seller of bottled water must operate within two main strategies, low cost and
differentiation. Both are required to make superior profits in this industry. Low cost must be
implemented in order to make significant profit margins, and differentiation must be used in
order for a consumer to prefer the company’s product above both direct competitors, other
companies which sell bottled water, and indirect competitors such as sports drinks, water
filtration systems, and tap water.
Solution Recommendations & Justification
Efficient use of materials is one of the most important factors in the profitability of a
seller of bottled water. Low materials costs mean higher profit margins, and an effort to use as
little plastic and other materials as possible could create an environmentally friendly image.
Pepsi has made efforts to make plastic bottles of Aquafina water as thin as possible, and Coca-
Cola has decreased the size of bottle caps on their bottles of Dasani. Similar efforts would be
advisable for all sellers of bottled water. In order to further develop an environmentally friendly
image, bottlers could support recycling old water bottles, either by implementing a program in
which bottles are returned to the company for recycling or reuse, or through a campaign
supporting recycling.
Thus far the only participants in the bottled water market have been soft drink producers
or companies that have been in the business for a long time. One group that has the ability to
exploit the growing demand for bottled water but has not yet is brewers. When hurricane
Katrina hit the gulf coast, Anheuser-Busch responded by donating upwards of five million cans
of drinking water to the devastated regions. The company was able to smoothly and efficiently
convert its breweries to the packaging of water, and the company could make a financial effort
similar to this humanitarian effort. In this case they used cans, but they could just as easily use
glass bottles. Such a venture could market bottled water to previously untargeted consumers,
and brewers could even make tie-ins with their existing alcoholic beverages.
Perhaps the most important and most difficult factor in the success of a producer of
bottled water is image. In order to be profitable a company must have some quality that makes it
stand out from competitors, whether it be superior purity, superior taste, addition of flavors,
addition of vitamins and minerals, a strong marketing campaign promoting a unique image, or
even simple availability and convenience. In order to succeed, a bottled water company must
have one or more of these qualities.
Team 3: Bottled Water Case Study 14
REFERENCES
“Behind the Brand.” The Coca-Cola Company. 24 March 2008 <http://www.thecoca-
colacompany.com/ourcompany/index.html>.
“Bottled Water in the United States: Industry Profile.” Datamonitor.com. November 2007.
Business Source Premier. 24 March 2008
<http://web.ebscohost.com.libdata.lib.ua.edu/bsi/pdf? vid=13&hid=106&sid=0043c078-
6ea9-4a90-8903-fe8c28f9efd0%40sessionmgr108>.
“Brand Fact Sheets.” The Coca-Cola Company. 25 March 2008 <http://www.virtualvender.coca-
cola.com/ft/index.jsp>.
“Coca-Cola Co (KO).” Yahoo Finance. 25 March 2008 <http://finance.yahoo.com/q?s=KO>.
“Coke recalls controversial water.” BBC News. 19 March 2004. 25 March 2008
<http://news.bbc.co.uk/1/hi/business/3550063.stm>.
“FAQ.” Dasani.com. 25 March 2008 <http://dasani.com/popups/faq01.htm>.
Lopes, Gregory. “House Probes Bottled-Water Impact.” The Washington Times. 1 February
2008. Business & Company Resouce Center. 25 March 2008
<http://galenet.galegroup.com.libdata.lib.ua.edu/servlet/BCRC?
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e=i&ste=72&tbst=tsIS&cind=312112+-
+Bottled+Water+Manufacturing&tab=2&n=25&docNum=CJ174114695
&bConts=2306>.
“Mission Statement and Vision.” The Coca-Cola Company. 25 March 2008
<http://www.thecoca-colacompany.com/ourcompany/mission_vision_values.html>.
“New ‘Environmental Champion’ Torchbearers around the World Prepare to Carry Olympic
Flame as Coca-Cola Extends Sustainability Platform to Olympic Torch Relay. The Coca-
Cola Company. 24 March 2008. 25 March 2008 <http://biz.yahoo.com/bw/080324/
20080324005457.html?.v=1>.
“Our Coca-Cola System.” The Coca-Cola Company. 25 March 2008 <http://www.thecoca-
colacompany.com/ourcompany/the_cocacola_system.html.>
Team 3: Bottled Water Case Study 15
Porter, M. (1980). Competitive Strategy: Techniques for Analyzing Industries and Competitors.
New York, NY: Free Press.
“The Coca-Cola Company (KO): Form 10-k.” EDGARonline. 25 March 2008
<http://yahoo.brand.edgar-online.com/fetchFilingFrameset.aspx?dcn=0001193125-08-
041768&Type=HTML>
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