Mou Strategy Slide

7/31/2019 Mou Strategy Slide

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Till 1990 was a prestige product in us Booming bus with 38 billions gallons of annual sales in

2003 & 10% growth between1998 and 2003 US the world largest markets ( from 1998-2006

increased by 9%). Other in the top rank are westernEurope and Mexico. In 2003 2004 Asia and South America became the

emerging markets In 2004 became the second largest market in

beverages in US. Controlled by a few food and beverage companies.

Three giant competitors are Coca cola, PepsiCo &Nestle.


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Increased focus on fitness and healthSafety concerns of municipal drinking

water

Convenience , purity and portability ofbottled water

Improved consumer awareness of need forproper hydration

Chemical taste of tap water includingchlorine and fluoride that was greatproblem to US people.


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Strength The life style of people is changing

Demand increasing day by day in the bottle water

Convenience, purity and profitability can be thestrength of bottle water

Better distribution for integrated soft drink makers

Weakness The lack of awareness and the poverty the lack of

avail in the remote areas also the strong reason


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Opportunities People are becoming more health conscious

Degradation of the quality of water day by day

Increasing epidemic and disease rate

Threats Low entry barriers

Economic uncertainty Small regional sellers making available the

product at a lower cost


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Profitability markets that yield high returns willdraw firms.

A few small competitors are capable ofmaintain their consumers

Just a competitor who is able to offer bigquantities of bottled water at a low price isgoing to enter this industry

Vast beverage distributing systems of Coke

and Pepsi enables them to have intimaterelationships with retail channels and wouldbe able to defend their positions effectively.


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The suppliers to the bottled water industryinclude municipal water systems ,springoperators, bottling equipment manufacturers,deionization, reverse osmosis, and filtrationequipment manufacturers

Manufacturers of PET & HDPE bottles, largebottlers able to purchase bottles as little as 5cents per bottle

Due to large number of existing suppliersbargaining power of suppliers is low


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The price sensitivity of buyers around the globe isbig concerns for the leading sellers of the industry

Principle Channels: Convenience store, foodstores, mass merchandisers, vending machine

Consumers will not stop buying bottled water justbecause a high price they may only change fromone brand to another or in the best scenario firmone flavor to another, because bottled water today

is considered as a basic product. So barragingpower of buyers is medium.


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There are a few global competitors in the

industry such as Nestle Waters, Group

DANONE, Coco cola, PepsiCo.


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Compete aggressively on price within some of thecompany in the bottled water industry.

Progressively focusing on health and fitness ofconsumers making differentiation in developingproducts within the companies of the bottled waterindustry.

Bottled waters sellers also needed to have efficientdistribution includes high fixed maximize the number ofdelivers and on-time per drivers since distributionincludes high fixed costs.

The competitors in the industry have not only bottledwater but enhanced waters or functional wateravailable in every single market.

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Mou Strategy Slide