Markt Researh Of Aquafina
Essay Preview: Markt Researh Of Aquafina
Report this essay
MARKETING RESEARCH REPORT ON AQUAFINA
April 19,
2007
MARKETING RESEARCH Page 1
1. INTRODUCTION 1.1. GLOBAL BOTTLED WATER SCENARIO
Bottled Water is considered the smallest yet fastest growing and most dynamic segment of the beverage industry. The world bottled water market represents an annual volume of 89 billion liters and is estimated to be worth US$ 22 billion. Western Europeans are the world’s major bottled water consumers with per capita consumption of 85 liters, but the most promising markets are in Asia and the Pacific, with an annual increase of 15% for the period 1999-2001. The average world consumption grows by 7% per annum. The world total bottled water consumption grew from 19.186 billion gallons in 1996 to 30.103 billion gallons in 2001registering a compound annual growth rate of 9.4% during the period. The U.S., Mexico and Western European countries are the leading bottled water consuming countries. 1.2. ASIAN BOTTLED WATER INDUSTRY
The bottled water industry is one of the fastest growing industries in Asia. Zenith International, specialist consultants for Asia Bottled Water Association (ABWA) reports stunning growth of 45% since 1998 across 50 countries in Asia, Middle East and North Africa. Total sales reached 25,270 million liters, more than double the level of 1995. The region now represents 23% of global consumption with market value at US$ 4,700 million. 1.3. MAJOR GLOBAL PLAYERS
The bottled water market is a lucrative one, dominated by Swiss food giant NestlД©, with a 16.8 per cent share, and Frances Danone, which controls about 14 per cent. Nestle has found a growing market niche for bottled water in no industrialized and
MARKETING RESEARCH REPORT ON AQUAFINA
April 19,
2007
MARKETING RESEARCH Page 2
developing countries where safe tap water is rare. In these countries, its main product line is Nestle pure; a low-cost purified tap water with added minerals. Nestle Pure Life has sold well in Pakistan and Brazil and have some other bottled water products in China, Vietnam, Thailand, and Mexico. Besides Nestle, giants of the global food and beverage industry have also become purveyors of bottled water, including Coca-Cola, Pepsi and Proctor & Gamble. With the entry of the big soft drink giants, market growth is expected to accelerate further. PepsiCo is currently leading the way with its Aquafina line, while Coca-Cola has launched a North American line under the name Dasani in addition to its already established international label, Bon Aqua. 1.4. BOTTLED WATER INDUSTRY IN PAKISTAN
Pakistan’s bottled water industry is a rapidly growing segment of the beverages sector. The country’s market is comparatively very small on a global scale and was estimated at 33 million liters a year by end of 19991. However, with swift increase in the number of bottled water producers during the last three years, the country’s market is estimated to have grown to 70 million liters with per capita consumption reaching half a liter. The bottled water market is presently growing at a robust rate of 40% per annum. According to a study compiled in 2001 by Zenith International, specialist consultants for Asia Bottled Water Association (ABWA). Pakistan registered the fastest growth of 140% in 2000 amongst the countries in Asia and Middle East region. (Source: Digest of Industrial Sectors in Pakistan, 2004)
MARKETING RESEARCH REPORT ON AQUAFINA
April 19,
2007
MARKETING RESEARCH Page 3
2. PROBLEM DEFINITION 2.1. BACKGROUND TO THE PROBLEM
Pepsi Co. launched its bottled water brand �Aquafina’ in U.S in 1994. In few years, it became one of the leading bottled water brands of the world. Aquafina was competing against bottled water brands such as Culligan, AVA, and Nestle. By 2000 Aquafina was present in more than 30 countries including U.S, Brazil, UK, India etc. Pepsi Co. launched Aquafina in Pakistan in late 2003. The reason for launching Aquafina was the huge market potential for bottled water in Pakistan. Nestle Pakistan’s bottled water �Nestle Pure Life’; launched in 1997, has already grabbed a whopping market share of 50% by 2003. But still, the bottled water industry has huge potential and uncharted shores to be explored. As Pakistan is one of the most populated countries of the world. People in Pakistan were deprived of the basic necessities of life particularly safe drinking water. Therefore, Pepsi Co. seeking a massive potential launched Aquafina. Their marketing campaign is based on the theme �Purity Guaranteed’. As Aquafina’s target segment included general public, who wanted safe and pure drinking water. So, Aquafina was priced relatively low. The price Aquafina was lower than Nestle Pure Life. A bottle of Nestle Pure Life (500ml) was priced at Rs 15, whereas the same bottle of water of Aquafina was priced at Rs. 13. Even though the all so famous name Pepsi Co. was labeled with Aquafina. It has not been able to penetrate into its target market. Being a brand of Pepsi Co, it still has failed to gain a desired market share. 2.1. STATEMENT OF THE PROBLEM
The genre of this research would be a problem solving research. In problem solving research, our locus of focus would include product research; we would focus on queries such as taste, quality, packaging, and positioning of Aquafina in the customers mind. In addition to that, we would also be focus on the aspects such as;
MARKETING RESEARCH REPORT ON AQUAFINA
April 19,
2007
MARKETING RESEARCH Page 4
why do people prefer Nestle Pure Life than Aquafina, and what is the comparable worth of Aquafina with respect to Nestle Pure Life? Hence, our marketing research problem would be revolving around the following questions:
п‚* Determine the relative strengths and weaknesses of the product attributes of Aquafina?
MARKETING RESEARCH REPORT ON AQUAFINA
April 19,
2007
MARKETING RESEARCH Page 5
3. APPROACH TO THE PROBLEM 3.1. RESEARCH QUESTIONS
After