Case Study FIJI Water

Question 1

What factors contributed to the marketing success of FIJI Water? Analyse the 4 Ps and the positioning of the FIJI Water brand.

FIJI´s 4 P´s• Taste• Ingredients• Packaging• Shape

• Premium – price

• Word-of-mouth• Free product

placement• Targeted

sampling• Paid advertising

• Locally and internationally

• Exclusive distributors and retailers

• Aggressive expansion

Product Price

PromotionPlace

FIJI´s success factors Innovative packaging Premium product pricing Effective distribution Image-creating publicity Good market environment Highly skillfull marketers Change in customer preferences

“promise of good health, refinement, status, and exclusivity“

Question 2What is the ethical and socially responsible

marketing? Why should marketers increasingly be concerned about CSR issues and sustainability?

Ethical and Social

CSR is promoted as a business model to help companies regulate themselves (because of the

impact on general public) as well as establishing a strong relationship with the

customer.

What is ethics? Not only profit-driven Reinforce social and ethical values for citizen

benefit

CSR Issues and Sustainabilities Ethics as a selling point Component of brand image Image of the organization Easier access to information (customer

awareness) Green movement Differentiation from competitors Attract and retain talent

Question 3What does it mean for FIJI Water to go carbon negative? What do think about it? How does one measure and report carbon footprints of

products? Is the carbon footprint of FIJI Water big compared to other products?

What does it mean to go carbon negative? Save more CO2 emissions than produced More investments (costly) FIJI Water is obligated to do it More research and development

(innovations) Restructuring Improve transparency / consumers

Our ThoughtsPros ConsAmbitious goal (company

vision) Could lead to

competitive advantage

Overpromising Public pressure

Right concept, but poor implementation and therefore a risky strategy

Measurement of Footprint Systematic aquistion of CO2 emissions along

the complete product lifecycle Could be measured by special studies of

institutions Part of annual report (voluntary

sustainability report) Carbon Accounting

ComparisonFIJI´s emissions:85,400 metric tons CO2 in 2007

Hard to compare due to:- Different products categories- Lack of international standards- Lack of information

Not possible to compare to others companies but important because of marketing reasons!

Question 4What is greenwashing? How can it be

identified?Do you think FIJI Water is engaged in greenwashing? From your point of view, what could the company do to gain environmental credibility?

What is Greenwashing?“Disinformation disseminated by an

organisation so as to present an environmentally

responsible public image.“

“Conduct that is misleading or deceptive or is likely to mislead or deceive.“

How to identify Greenwashing? Specific parts of a product / project are

communicated and the rest is not mentioned Transparent verification of marketing claims Contradiction between marketing and reality If the natural part is overstressed

Greenwashing at FIJI Water?Pros ConsNo detailed description of the

calculation of the footprintHard facts of Greenwash

BrigadeExploits a naturally occuring

product

Carbon negative goalConcrete actions to

reduce CO2-emissions

Company´s vision and reality do not fit

Question 5Apply (a) Porter´s 5 Forces Analysis and (b) a

SWOT Analysis on FIJI Water. Describe the company´s competitive situation. Based on the

results, what strategic moves would you suggest?

Porter´s 5 Forces Supplier power: relatively low because

easily replaceable Buyer power: middle to high because water

is an everyday consumption good Potential entrants: high threat of other

bottled water producers Potential substitutes: high variety of

potential substitutes (other bottled water, tap water)

Industry rivalry: very tense rivalry among companies

Competitive Situation

Other premium bottled waters Low cost waters Due to environmental movement: tap water

Tense market environment due to numerous competitors as well as substitution goods

SWOT Analysis Strengths:

- Image- Broad distribution

Weaknesses:- Relatively expensive- Environmental issue

Opportunities:- Niche marketing- Increasing Market

Threats:- Ongoing environmental movement- Shrinking market

Strategic Moves Further observation of the market and

therefore the amount of bottled water consumption

Further research and reduction of CO2 emissions to achieve the goal of being carbon negative and building up a competitive advantage and extension to other markets

Continue to educate the consumer about the differences between FIJI Water and other bottled waters and tap water

Question 6In your opinion, are the concerns of the government of Fiji about the “negative” contribution of the FIJI Water to the local economy justified? Does the company do enough to improve its relations with the government and the local community? What else should it do to improve those relations?

Negative contribution of FIJI Water to the local economy?

Pros Cons

FIJI Water employs mostly uneducated locals and trains them on the job

Fiji´s government profits from exports and taxes (water is the second most important export product)

Heavy fading of local infrastructure

FIJI Water paid no taxes till 2008

FIJI Water exploits a scarce resource

FIJI Water brought lots of benefits to the local economy

Does the company do enough to improve its relations with the government and the local community? Relations with the local community

FIJI Water has a strong CSR programUses local providers for services and supplySupports children educationFund to support projects in the villageAlliance with local companies by outsourcing departmentsDonates money to local aid

FIJI Water takes strong efforts to be a good corporate citizen

Does the company do enough to improve its relations with the government and the local community? Relations with the local government

Water companies try to outplay the government by relations with the media

Aggressive lobbying against governmentBlackmailed the government with production stopAlliance with local newspapers to boycott the

government Insufficient agreements between government and FIJI

Water

Need for productive dialogue

What else should FIJI Water do to improve the relations with the government and society?

Find an adequate tax systemRestructure the production process to make it

more sustainableLaunch a forum where representatives of

government, society and water industry can exchange ideas

Help to stabilize the government

Question 7Taking a look at FIJI Water’s current situation and customers as well as trends in consumer needs & behavior, what are the main future

challenges regarding marketing the product? What are your recommendations to respond to

them?

Main future challenges regarding the marketing of the product

Proof that FIJI Water does not do greenwashingAchieve the „Carbon Negative“ goal,More detailed sustainability report

Improve the image of bottled water

Recommendations to respond to these challengesRestructure production and distribution

processes to save energy and ressourcesUsage of renewable energiesCreate a more transparent insight into the

company´s sustainability efforts Concentrate on metropolitain areas and regions

with poor tap water quality(Establish a border between FIJI Water and other

waters)

Sources Case FIJI Water http://www.fijiwater.com http://inhabitat.com/is-it-green-fiji-water/ http://www.odysseytransform.com/2012/12/21/get-brilliant-at-the-4ps/ http://www.cascademuskyassociation.com/Logo__Fiji_Water.jpg http://fenixenergy.com/wp-content/uploads/2011/08/iStock_carbon-footprint.jpg http://blog.printecosoftware.com/wp-content/uploads/2013/08/greenwash-paint-

150.jpg

http://jsrcharteredaccountants.com/wp-content/uploads/2011/07/ScrabbleBusinessStrategy.jpg

http://www.goodmorningcreativity.com/wp-content/uploads/2012/01/Create-your-future1.jpg

http://www.charterworld.com/news/wp-content/uploads/2011/01/Fiji_Islands.jpg http://en.wikipedia.org/wiki/Socially_responsible_marketing

Thank you for your attention!!