Fiji Water Company Analysis and Market Strategies - Term Paper Example

Task “Marketing” Executive summary Fiji Water Company is one of the key manufacturers of bottled water. It has created a considerable market niche. There are current numerous Strategy issues that bottled water company Fiji water is experiencing. The economic recession has facilitated a significant shift in the consumer buying trends. This has triggered and affected the finical stability of bottled water category. It is imperative to note that, environmental issues immensely affect Fiji Water Company. Some of these issues include, waste and pollution. This survey indicates that, Fiji’s competitors in this filed, face similar environmental issues (Gary and Philip, 123). The study reveals the change of operation adopted by these firms such that, they could suit the consumers who favor environmental sustainable products. For instance, the firms have actively embraced packaging and shipping methods, which have proved to be ecologically friendly to the environment and suits the consumer’s choice of environmental sustainable products (Gary and Philip, 134). Furthermore, the consumers have begun raising eyebrows on the type and quality of bottled water companies’ produce, due to the continued urge of consumers to obtain healthier life styles diets. This study reveals that, all these factor or issues have affected Fiji Company. Additionally, negative press has adversely affected Fiji’s socio-economic conditions, which have made it hard for attaining a competitive market niche both locally and internationally. For instance, this survey indicates that, Fiji was compelled to lay off approximately 40% of the staffing resources (Gary and Philip, 136). This implies that, the existing limited resources at Fiji’s disposal, a going forward action plan should be embraced. It should be cost effective and extremely efficient. Following the status of Fiji’s position in the market niche, a quick, but more analytic and critiquing four prospective strategic options to develop a rational decision in a bid to revive the revamped Fiji’s brand have been forged. Supporting this plan with diverse marketing tactics and apt communication channels, would attempt revive Fiji’s fortunes in the growth trend. Current situation The artesian water that was founded back in 1953 in a state called Coloradoand characterizes Fiji Water Company. Fiji’s water was first produced and sold to the global market in1996. This product sourced from an island called Artesian, then packaged, shipped and sold to intermediaries across the globe (Gary and Philip, 138). This product sizing is done in diverse and appropriate sizes. This study reveals that, the product was introduced to the US market in California and Florida states. The current headwaters of Fiji Company are located at Los Angeles. Jon Edward Cochran heads it. It is significant to note that, Fiji Company is a fully owned subsidiary of Roll International Corporation. Roll international is private owned firm whose worth is approximately $2b. It has over 4000 employees in diverse industries, which include, consumer packed products, floral services and agriculture. This study reveals that, the acquisition happened in 2004, when it cost $50m (Gary and Philip, 134). It is significant, to note that, the initial year of Fiji’s acquisition was a gigantic success, which saw the company’s sales raise up to 50% mark. This was excellent, bearing in mind the massive concentration of the water industry. Company Analysis and market strategies Feet industry The overall beverage industry had undergone a cumulative increase of 30% sales increase from 2004- 2008, and it was listed to be worth $39b. For instance, it was able to sale approximately 4750m gallons in early 2000 and 9450 in 2008. Furthermore, the feet industry category opened up new customers up to 24 million (Gary and Philip, 134). Conversely, as the worth of the bottled water category raised steadily at an average of 50% between 2004 and 2008 saw a meager 9% increase in 2009. Segmentation Within the beverage industry, the bottled class is gash into three key segments. They include substantial manufacturers, which account for 70% of the beverage sales. Some of the examples of manufacturers include Coca Cola, PepsiCo and Crystal Geyser Water Co. In addition, this study reveals that, the small companies have also invaded the Fiji water’s market segmentation (Gary and Philip, 134). The additional growing segments such as private label bottled water, reusable water bottles, and tap water and water filtration systems. This study indicates that, a recent consumer trend shift towards private labeled beverages is due to the environmental issues. Furthermore, the study reveals that sale segmentation imbalance resulted from the desire for consumers to opt for tap water consequently high tap water consumption compared to the bottled water (Gary and Philip, 139). It is imperative to note that, segment competition became stiffer due to the entrance of small companies, which provided reusable bottled water. This caused a shift of consumers from Fiji and other companies. The reusable bottled has provided consumer’s convenience, which is provided by bottled water. The new competitors relatively threaten Fiji water sales since it is a time of far-fetched consumer trend shift for beverage industry, Fiji water and bottled water (Gary and Philip, 135). The SWOT analysis indicates that, out of the 180m bottles sold in 2008, majority occurred in America. This trend is attributed the apt and convenience packaging, which saw young adults forming a relatively majority element in the Fiji market segment (Gary and Philip, 134). Additionally the Fiji bottled water remain the highly priced and this dictates the targeted audience. This survey indicates that, majority of the targeted group include the mid high-level earning and not sensitive consumers. In addition, there has been multiple trend shifts among the bottle water consumer audience have adversely affected the sales the entire category. Further indication of the SWOT analysis strengths and weaknesses reveals a financially successful parent firm, unstable brand image as consumers as consumers could write negative responses on the products, existence of diverse and strong distribution chains and high brand awareness (Gary and Philip, 212). More over, no indication of strong links with NGOs that aid in environment conservation. Additionally, the analysis fails to provide a clear-cut strategy of positioning criteria. The marketing strategy appropriate for Fiji Company to maintain the hedged competition in the current segment is attributed to product differentiation and price cut (Gary and Philip, 212). A new product is imperative for the current market; this will enhance provision of less costly product. The strategic tactic should incorporate rebranding and resource commitment to ensure equitable distribution in the market. Similarly, the segment balance and target group (middle and low-income earners) should be balanced to enhance maximum sales and growth of the company. Product Positioning Fiji’s water positions as superior quality with apt ability of quenching thirst sourced from the artesian water. It is notable, that the Fiji water remains the uppermost priced bottled water on the shelf at the vendor stores (Gary and Philip, 211). Furthermore, branding has financed Fiji water to develop a brand image of tropical and exotic water by its packaging of palm tree images. It is evident that, the brand has gained a considerable extent of awareness due to the modern culture gained from hefty advertising and promotions. For instance, Fiji Company spent up to an approximated value of $ 7 million to $ 11 million in 2008 per a week. This plan requires Fiji to reposition itself in order to align itself to and against the positive and negative shifts respectively. For instance, a decrease in price serves as a key aspect of repositioning in the market segment. This creates new competition hedge among the small companies, which enjoy sales to the low-income earners (Gary and Philip, 214). However, this may appear to solve short-term competition stimuli, it is likely to facilitate the creation of a new niche in the market. Fiji Water Company should apply cost efficient strategy in repositioning itself. For instance, use of outdoor advertising and physical outreach efforts. Additionally, adoption of free tactic of using the social media to mingle with the consumers will enhance fast and affordable repositioning. Competition Fiji company a maintained a competitive sedge against it s competitors in the market niche, particularly in the beverage category. This survey establishes that, Fiji competes with Coca Cola and Pepsi brands in an indirect manner. On the other and, Fiji competes with other small companies such as Evian in a direct manner. This happens due to the direct competition in the segmentation level. The to-become strategy embraced by Fiji in the positioning strategy as a small company has enhanced its branding as the consumer’s choice during the consumer’s decision making to purchase (Gary and Philip, 157). This survey indicates that, the Fiji, Water Company has concentrated on building brawny brand equity to achieve this placement. It is imperative to note that, the company as invested in promotional channel advertisement to open up to new markets and increase awareness. Fiji’s communication message contained a convincing slogan” natural artesian water”. This together with images indicating habitual settings a constructed an impeccable differentiated brand image in a section where differentiation proved to be complex. Besides advertising, Fiji uses the promotional channels of product placement (Gary and Philip, 212). These adverts have been incorporated into Hollywood, golf advertisements, TV shows and numerous musical events. Furthermore, Fiji practices controlled distribution strategy particularly in reputable hotels, restaurants and resorts. This study reveals that, these strategies have paid off (Gary and Philip, 167). The survey reveals that, Fiji was the leading bottled water exporter with the segmental sales averaging at $95. In addition, due to the fall of Evian by 19% in sales left Fiji to become the leading seller in the small manufacturer’s category. It is notable that, a sensitivity concerning environmental perpetuation has become a progressively large background factor. Since bottled water products purely depend on petroleum plastic, which is non-bio gradable, for packaging, it has resulted to apt change in competition and consumer trends for the category and Fiji water in the general market niche. In addition, marketing tactics and brand aspects play a fundamental role in maintaining the competitive hedge embraced by Fiji (Gary and Philip, 232). For instance, Fiji should consider cost efficient and effective in growing brand equity, particularly in creating brand awareness. Objectives and issues This plan intends to solve and carry out sale activities in tandem wit the consumer trend shifts especially due to environmental concerns. For this case shipping of Fiji water to selling destination, using non-bio gradable bottles as packaging should be embraced. On the economic point, Fiji Company should consider reducing prices such that it can capture more low class income and price sensitive population. Furthermore, the environment should be conserved by decentralizing the water sources to locations closer to selling destinations and embracing total use of non-bio gradable bottles for packaging (Gary and Philip, 168). More over, on promoting the socio-economic issues, continuation of using the Fiji water Foundation should be embraced to enhance provision of support to the locals and of significant use of marketing strategies to enlighten the public. On health issues, a third party should be hired to test the quality of Fiji water and publish the findings. This intends to enhance existing confidence on Fiji water consequently increasing sales. Similarly, the packaging materials should be given a keen consideration, especially on switching from plastic to safer and less harmful to the environment. Conclusion This survey explores the analysis of Fiji Water Company in relation to the socio-economic and environmental issues. It is imperative to note that, the company enjoys a relatively excellent market niche and it has successfully enhanced a competitive hedge among the middle-income population. However, the study suggests that the current consumer shifts to tap water, and cheap bottled water is likely to create a stiff competition from Fiji’s contenders in the market segment (Gary and Philip, 342). It is significant for Fiji Company to embrace diverse market tactics and strategies to maintain its market niche position and enhance its competitive hedge. For instance, brand differentiation is critical in attracting the new customers in the market. Fiji should endeavor in creating an exceptionally new brand and propel its marketing and promotion aspects through physical outreach and more preferably social media channels. This is essential in redefining Fiji’s position, in the new market (Gary and Philip, 231). Furthermore, the branding aspect should be done in such way that, it retains few elements of the original product (Gary and Philip, 134). This is fundamental because of the urge of the need to retain the already consumers of the product. It is evident, from this study, that, environmental issues related to the consumption of the Fiji water should be addressed by replacing the current packaging materials to the non-biodegradable (Gary and Philip, 134). The marketing strategies and tactics selected in this survey meet the criteria of meaningful memorable and likable brand. Bibliography Gary Armstrong and Philip Kotler. Study Guide for Marketing: An Introduction. Hong Kong: Pearson Education Asia, 2012. Print. Read More