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Bottled water commodity chain - Research Paper Example

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According to reports released by the International Bottled Water Association (IBWA) “the overall consumption of bottled water has increased by 4.1 percent” (IBWA, 2012,…
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Bottled water commodity chain
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"Bottled water commodity chain"

Download file to see previous pages ny bottled water companies have been faced by numerous challenges, with others even being forced to close down due to excessive competition that exists in this industry. To evaluate the issues that exist in this industry, it is important to carry out a commodity chain analysis using FWC as an example.
Fiji water has always been ahead of other companies when it comes to the production of bottled water. The production process begins with the tapping of rain water that is purified by the equatorial winds after travelling through the Pacific Ocean. The water is then filtered for a long period during which essential minerals such as ions and silica are gathered to increase the health of the consumers. The company’s marketing structure has been one factor that has enabled them to gain popularity and acquire a competitive edge against rival companies such as Dasani water from Coca Cola, Nestle’ water among others. FWC bases its strategy on the premise that when the consumers understand that their product originates from a remote aquifer in Fiji, they will have a liking towards it since it would represent an “untouched water with untouchable taste,” (Sorrells, 2012, para.1). This therefore implies that creating an identity to the customers would increase the customer reliance on the product.
Fiji’s marketing strategy has been a success over the last few years. This success can be attributed to the use of ideal aspects such as perfect market timing, a unique product positioning, premium product pricing, creating image publicity, innovative packaging and effective distribution. For instance, they have created a notion to the customers defining that their premium product is far from pollution, acid rain, industrial waste, and it is uncontaminated, untouched and uncompromised. According to Jessop, this product has been “preserved and protected by geography and geology” (2013, p. 10). This therefore results to a fine taste and mineral properties that are enjoyed ...Download file to see next pagesRead More
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