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Competition in the Bottled Water Industry in 2006

Essay by   •  March 22, 2017  •  Case Study  •  417 Words (2 Pages)  •  1,466 Views

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MKF3131 Case Report

Week 2

Competition in the Bottled Water Industry in 2006

1. Business and industry definition & statement of analysis level.

This report will do marketing situation analysis and SWOT analysis for Pepsi, which is beyond Global bottled water industry, and try to come up with some strategies for dealing existed problem and future threat.

2.Problem /Opportunity Statement

As the increase of people awareness to personal health, as well as customers’ life style tend to seek a more convenience way to purchase bottled water, the bottled water industry need to consider its products quality as well as the distribution channel that can attract more consumers to do purchasing. Due to there are some well-know companies in this industry, such as Coca-Cola, Nestle, Pepsi, etc., the competition is cruel. So that, to keep Pepsi a dominated position would be the main opportunity statement, or objective in this report.

SWOT Analysis

Strength

Bottled water is more convenience and available in anywhere that customer’s workplace, shopping mart, etc.

Pepsi doing international marketing as a way to expand market.

Add ozone gas to water to prevent bacteria growth.

Weakness

Slowing industry economics growth rate.

Lack of consumers’ loyalty program

Opportunity

People tend to prefer bottled water rather than tap water.

Huge potential in oversea market.

Threat

Competition

Substitute products in market.

Strict regulation in US as well as global

3. Alternative Strategies

Strategy1: Continue expand Pepsi market internationally especially in Asia.

Strategy2: Make customer loyalty program.

Strategy3: Keep doing product innovation.

4. Strategy Evaluation

Strategy 1 will help Pepsi to gain a huge potential market and customers, but it need to do a lot of marketing research in Asia and try to find a best way to enter foreign markets, which need more cost, and under a higher risk.

Strategy 2 can transfer Pepsi customers into regular customers that hold on a great market size. However, it need to come up with good idea that can do interaction with customers, as well as retrieve customers data to measure whether the loyalty program work or not.

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