WATER IS WATER! IS IT?Group 3CRBR2

1The curious case of bottled water

Based on article message in a bottle by Charles fisherman

This slide can be used as a background before the presentation begins. 2WaTErConvenience or Commodity?3FIJI- untouchedWorlds leading bottled water manufacturerExports > 1 million bottles per day to US53 percent of the people dont have access to clean drinking water on a regular basis.But villagers are also benefitting- business, wages, learningshttp://socialacumen.blogspot.in/2010/11/interview-with-charles-fishman-message.html

4Poland spring- americans sure are thirsty

Largest bottled water factory in North America24 million bottles , 2.5 gallon jugs manufactured every 5 days

(CULTURE OF INDULGENCE)Indispensable propIgnorant of the tap water at homeFrom barely a business to $15 billion industry

http://www.thefactsaboutwater.org/trustee-only-content35San PellegrinoFree water to local citizenstrucks up carbon dioxide from another spring in order to carbonate its water1 litre glass bottle- added weight- added freight cost and energy

6New customers and new occasions Consumer TypeNeedInvolvement1. Water-purefectionist1. Health benefits2. SafetyHigh + Cognitive 2. Water explorer1. Substitute for other beverages2. Quality/taste3. ConvenienceMedium (passive)3. Image SeekerStatusPackagingMedium (passive)4. Struggler1. Thirst quencherLow (impulse buyer)Environmental & SOCIAL implications50 billion plastic water bottles in 2006 77% recyclable PET goes underused38 billion bottles / yr- used as landfillsBottled water isnt more healthier, tastier or safer than tap water. 2 litres of water consumed to prepare the 1 litre bottle24/7 energy consumptionTransportation costsSubstitution effects 8. Supporting developing country

8Bottled Water Marketvalued at USD 157.27 billion in 2013, which is expected to reach USD 279.65 billion by 2020See more at: http://globenewswire.com/news-release/2015/01/16-By-Volume-Global-Bottled-Water-Market-is-Expected-to-Reach-465-12-Billion-Liters-in-2020-Transparency-Ma.html#sthash.d7HTRMCZ.dpuf

9UrbanizationHealth conscious segment growthRise in disposable incomeTourist influxConvenience & time saving alternativeWater scarcity / poor quality tap waterGrowth drivers- US & IndiaHealth conscious segment growthConvenience & time saving alternativeStatus symbolevolution of new packaging initiatives

More utilitarian needUtilitarian & hedonic need

CarbonatedBottled WaterIndia's packaged bottled water industry to reach Rs.160 billion by 2018

U.S.US per capita consumption 32 gallons (120 litres) annually India per capita consumption less than 5 litres annually Source: Beverage Marketing Corporation Copyright 2014 by Beverage Marketing Corporationhttp://www.business-standard.com/article/news-ani/india-s-packaged-bottled-water-industry-to-reach-rs-160-billion-by-2018-114050800490_1.htmlThe total market was valued at Rs.60 billion in 2013, of which the top five players accounted for 67 per cent of the market share.This market is expected to grow at a CAGR of 22 percent, to reach Rs.160 billion in 2018.12Indias marketMarket Value (2013) = Rs. 60 billionTop 5 players = 67% share, Growing at 22% CAGRIndustry started in 1990s with BisleriGrowth due to advertisement pure and healthyGrowing demand from institutionsPackaging formats to suit diff needs

http://www.business-standard.com/article/news-ani/india-s-packaged-bottled-water-industry-to-reach-rs-160-billion-by-2018-114050800490_1.html13Bottled water consumption

40%10%25%25%Bottling plants are concentrated in southern region- 55% of 3400+ plantsCHALLENGES-1. Low penetration in rural markets2. Credibility of local brands3. Increase use of water purifiershttp://bottledwaterindia.org/indian-bottledwater-market/14Indias marketEntry of Kinley in 2000Aggressive marketing and distributionKinley commercial TV ads- SAY TRUTH (hedonic need)

http://www.business-standard.com/article/news-ani/india-s-packaged-bottled-water-industry-to-reach-rs-160-billion-by-2018-114050800490_1.html15

Customers know what they want?Water: Its pure, its healthy, its perfectand weve made it better. The future of water sounds distinctly unlike water.WHAT They wantSubstitute for other beveragesSafety & purityRefreshing TasteHealth conscious -Zero Calories and additivesConvenience (travel)

Status symbolDissatisfied with organoleptics (odor, taste, color) of tap waterInfluenced by advertisementsAttractive packagingInstant gratificationWHY They want18

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How to save a natural resource harming other natural resources?

21Water- a force of nature