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• World’s 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

Stratégies 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

HARMFULTo achieving the objectives

HARMFULTo achieving the objectives

HELPFULTo achieving the objectives

HELPFULTo achieving the objectives

INT

ER

NA

L

FA

CT

OR

SIN

TE

RN

AL

F

AC

TO

RS

EX

TE

RN

AL

F

AC

TO

RS

EX

TE

RN

AL

F

AC

TO

RS

STRENGTHS

i.Growing Demand and Consumption

ii.Increasing awareness

iii.Convenience, portability and bad

quality of tap water

STRENGTHS

i.Growing Demand and Consumption

ii.Increasing awareness

iii.Convenience, portability and bad

quality of tap water

WEAKNESSES

i.Distribution to remote locationsii.Awareness Creation and affordability

WEAKNESSES

i.Distribution to remote locationsii.Awareness Creation and affordability

Huge Growth PotentialLarge number of untapped marketsIncreasing Consumption patternIncreasing health conscious people

OPPORTUNITIES

Huge Growth PotentialLarge number of untapped marketsIncreasing Consumption patternIncreasing health conscious people

OPPORTUNITIES

Low Entry Barrier

THREATS

Low Entry Barrier

THREATS

SWOTAnalysis

Porter’s 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

Porter’s Five Forces

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

Porter’s Five Forces

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

Porter’s Five Forces

Threat from SubstitutesNumerous substitutesCoffee, Tea, Milk, Beer & Soft DrinksHealthier and innovative enhanced waters or functional waters with flavours, added minerals and vitamins.

THANK YOU!!