Bottled Water Discussion Forum
What do many people pay hundreds and sometimes thousands of dollars for annually even though it’s available for free? The answer is bottled water, and the success of this $13-billion-dollar industry (in the U.S.) is what some people call the marketing trick of the century.
From a marketing perspective, bottled water giants such as Coke and Pepsi have taken advantage of people’s desire to live healthier with slogans such as ‘hydration is healthy’ (Dasani) or ‘pure water – pure taste (Aquafina). These slogans are often accompanied by images of glaciers that give consumers the idea the water is taken fresh from a mountaintop.
The truth is that nearly half of bottled water in the US, Canada, and U.K., is just treated tap water from local sources. This message, originally hidden, can now be seen in the small print on bottles since companies are now required by law to reveal it.
If it is ‘treated’ tap water though, doesn’t this mean it’s better? Not really, according to a 2008 study by the Environmental Working Group that found that bottled water had the same level of contaminants as tap water. Also, in the U.S, U.K, and Canada, tap water has stricter health standards than those imposed on bottled water manufacturers, suggesting bottled water may be even unhealthier. Lastly, regarding taste, countless blind taste tastes (one conducted by the New York Times) have shown that tap water was equal or better tasting to consumers.
The victim of the bottled water industry is not only the consumer, the environment suffers also. The majority of the 3 million tons of plastic used yearly worldwide ends up in garbage dumps or the ocean. Additionally, it takes 3 litres of water to package one bottle, which can take 700 years to begin to decompose.
Issues to be addressed in paper submission are:
- What kind of product is bottled water?
- What stage of the Product Life Cycle (PLC) would you say that bottled water occupies and why?
- What impact would the marketing mix have on the marketing of a bottled water product?
- Discuss the micro and macro environments of a bottled water company.
- Using chapter seven (7) as a guide, identify a bottled water product being marketed locally, that has been differentiated and discuss the comparative advantages that creates value to customers.
- With reference to the article above, it has been said that nearly half of bottled water in the US, Canada, and U.K., is just treated tap water from local sources. Is this unethical or is it fine if the water is treated and not hurting anyone? Discuss.
[Sources: http://www.businessinsider.com/the-real-reason-we-buy-bottled-water-2016-2, http://observer.com/2015/05/whichwas-the-best-and-most-successful-marketing-campaign- in-history/, http://theconversation.com/bottled-water-is-the-marketingtrick-of-the-century- 25842, http://www.theworldcounts.com/stories/Bottled_Water_Waste_Facts]
Below are websites for popular bottled water brands that you may wish to visit (just for information purposes and not required for the assignment):
PepsiCo’s Aquafina (www.aquafina.com/en-US/) Coca-Cola’s Dasani (www.dasani.com/)
Fiji Water (www.fijiwater.com/)
Evian (http://www.evian.com/en_us/)
Smart Water (https://www.drinksmartwater.com/) Aqua Pacific (www.aquapacific.com)
Perrier (www.usa.perrier.com).
Le Bleu (www.lebleu.com/)
Marketing Book: Principles of Marketing, 17th edition, ISBN 978-0-13-449251-3, by Philip Kotler and Gary Armstrong, published by Pearson Education © 2018.
The Truth Behind Bottled Water: An Environmental and Ethical Dilemma
Introduction
Bottled water has become a booming industry, with billions of dollars being spent on a product that is readily available for free. Marketing tactics employed by major companies such as Coke and Pepsi have successfully capitalized on people’s desire for health and purity. However, the reality is that nearly half of bottled water in the US, Canada, and the UK is simply treated tap water. This raises questions about the ethics and environmental impact of the bottled water industry. This essay will explore the product life cycle of bottled water, the influence of the marketing mix, the micro and macro environments of bottled water companies, and the ethical implications of selling treated tap water as a premium product.
1. What kind of product is bottled water?
Bottled water is a consumer packaged good that falls under the category of non-alcoholic beverages. It is a product that is purchased by consumers for hydration and refreshment purposes. Bottled water is available in various forms, including still, sparkling, flavored, and enhanced with vitamins or minerals.
2. What stage of the Product Life Cycle (PLC) would you say that bottled water occupies and why?
Bottled water can be considered to be in the maturity stage of the Product Life Cycle (PLC). The market for bottled water has reached saturation, with numerous brands and products available to consumers. The demand for bottled water has plateaued, and there is intense competition among brands to maintain market share. Additionally, there is a growing awareness of the environmental impact of plastic waste, which poses a threat to the continued growth of the industry.
3. What impact would the marketing mix have on the marketing of a bottled water product?
The marketing mix plays a crucial role in the marketing of a bottled water product. Here’s how each element of the marketing mix influences the marketing of bottled water:
Product: The quality and perceived purity of the water, as well as the packaging design and brand image, are important factors in attracting consumers. Differentiating factors such as enhanced flavors or added minerals can also be used to target specific consumer preferences.
Price: The price of bottled water can vary depending on factors such as brand reputation, packaging size, and distribution channels. Companies can position their products as premium or value-priced to target different market segments.
Promotion: Effective promotion strategies include advertising campaigns emphasizing health benefits, purity, and convenience. Sponsorships of sports events and partnerships with fitness influencers can also help create brand associations with an active lifestyle.
Place: Bottled water products are distributed through various channels, including supermarkets, convenience stores, vending machines, and online platforms. Companies need to ensure widespread availability to capture market share.
4. Discuss the micro and macro environments of a bottled water company.
Micro environment:
Suppliers: Bottled water companies rely on suppliers for raw materials such as plastic bottles, labels, and caps. Maintaining good relationships with suppliers is crucial for ensuring a steady supply chain.
Customers: The target customers for bottled water are health-conscious individuals seeking convenience and hydration. Understanding customer preferences and addressing their needs is essential for sustained success.
Competitors: The bottled water market is highly competitive, with numerous brands vying for market share. Competitors may offer similar products at different price points or differentiate themselves through unique branding or flavor options.
Macro environment:
Economic factors: Economic conditions can impact consumers’ willingness to spend on bottled water. Factors such as disposable income levels and economic stability can affect sales.
Technological factors: Advancements in filtration technology or packaging materials can impact the industry by improving product quality or reducing environmental impact.
Legal and regulatory factors: Bottled water companies must comply with regulations related to labeling, water quality standards, and environmental sustainability.
Social factors: Increased awareness about environmental issues and concerns about plastic waste have led to a growing movement against single-use plastic bottles.
5. Identify a locally marketed differentiated bottled water product and discuss its comparative advantages that create value for customers.
One locally marketed differentiated bottled water product is “Spring Fresh,” which sources its water from natural springs in a remote mountainous region. Spring Fresh positions itself as a premium brand that offers superior taste and purity compared to tap water or other competitors. Its comparative advantages include:
Source credibility: The use of natural springs as a water source creates an association with pristine nature and untouched purity.
Enhanced taste profile: Spring Fresh undergoes a unique filtration process that removes impurities while retaining beneficial minerals. This results in a smooth and refreshing taste that appeals to discerning consumers.
Sustainable packaging: Spring Fresh uses eco-friendly packaging made from recycled materials, appealing to environmentally conscious customers.
Local community support: Spring Fresh partners with local organizations to support initiatives such as clean water projects in rural areas, creating a positive brand image.
These comparative advantages create value for customers by offering them a premium product that fulfills their desire for pure and great-tasting water while aligning with their ethical and environmental values.
6. Is it unethical to sell treated tap water as bottled water?
Selling treated tap water as bottled water raises ethical concerns due to misleading marketing practices and potential environmental consequences. While treating tap water can remove contaminants and improve taste, marketing it as premium or natural spring water is deceptive.
Ethically, consumers have a right to accurate information about the product they are purchasing. By labeling treated tap water as something else, companies are misleading customers who may be paying a premium for perceived quality or health benefits.
Moreover, from an environmental perspective, the production and disposal of plastic bottles contribute to pollution and waste. Selling treated tap water perpetuates this cycle by encouraging unnecessary consumption without providing significant benefits over tap water.
In conclusion,
while treating tap water for safety reasons may be necessary, misrepresenting it as something else is dishonest and environmentally irresponsible. Companies in the bottled water industry should prioritize transparency, provide accurate information to consumers, and take steps towards sustainability by reducing plastic waste through innovative packaging solutions.
References:
Business Insider: The Real Reason We Buy Bottled Water
Observer: Which Was the Best and Most Successful Marketing Campaign in History?
The Conversation: Bottled Water Is the Marketing Trick of the Century
The World Counts: Bottled Water Waste Facts