According to the theory of Maslow’s hierarchy of needs, people’s needs are always from low-level needs to high-level, that is form physiological needs to psychological needs. Water is source of life, so drinking water is fundamental demand of human life. With the development of science and technology, people gradually improve their standard of living. Water is no longer just a simple function of quench people thirst. Dinking water includes natural spring water bottled water, tap water and so on, which Bottled water become a feature of urbanites’ lifestyle. It is easy to buy and convenient and it contains minerals that are healthy for people. But bottled water industry mainly faces three challenges following by costs, water resources, competitive brands.
Depending on the different regions of world, bottled water costs around 250 to 10,000 times than tap water. Many governments encourage people to drink tap water which is more economical than bottled water. For example, the district of Columbia publishes the test results of local water quality annually to assure people to drink it. Manufacturers need consider the huge of resources used to produce the plastic water bottles and the costs of distribution.
In addition, small companies of bottled water often face price wars, which influence profit margins sometimes even lead to losses. Moreover, bottled water industry is business of “a small profit on a great quantity of goods.” As for large-scale companies, they should consider about costs of exported transportation and labor costs.
Bottled water is chosen by customers for reasons of purity and safety. So the water resources are important to customers. With the change of climate and pollution of water resources, the use of alternative water resource has increased over past three decades. But the alternative water sources face many challenges including technology, distribution costs, as well as the acceptance of customers. Recycled water can produce toxic byproducts.
On the contrary, the brand uses the pure water resources can stand out in the bottled water market. For example, Evian is the famous French brand because of its reputation of water resources. Evian water originates from a spring in French Alps whose natural environment links the slogan “naturally pure and mineral-balanced water supports your body’s youth. Its famous small town at the food of the Alps was name by this bottled water also give customers special experience where make the customer be closes to their natural water resources.
Brand success is always related with innovation. As a wide range of drinks put forward in the market of drinks, they influence the bottled industry without doubt. Because customers have more and more choice when they face a variety of drinks on the shelf in the supermarket. Marketers need build specific marketing strategy to attract more customer and stand out in the bottled water market such as using innovative packaging, produce different flavors etc.
Maureen Duffy, Challenges in the water industry: the tap versus bottled water debate
Nadia Kusuma Dewi, Analysis: Bottled water industry faces both growth and challenges, Jakarta, May 27, 2015