Aquafina Marketing PDF

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MARKETING MANAGEMENT: AQUAFINA PURIFIED DRINKING WATER

STRENGTH

1. Health and Hygiene Conscious: Packaged Water category is a healthier option considering the increasing amount of water diseases and their consequences. 2. Strong Parent Company: Aquafina has a stronger Brand value with the support of PepsiCo. PepsiCo has been a major factor in the quick growth and wider reach of Aquafina.

3. Strong Branding and Marketing: Aquafina has performed brilliantly as far as branding and marketing are concerned. From the Local point of purchase branding to TV Commercials, Aquafina has been successful in promoting itself as a Brand.

4. Strong Distribution Network: Aquafina has a very strong distribution network courtesy of PepsiCo's strong supply chain. Aquafina is available in small retail chains to large hotels and restaurants.

5. Environmental friendly Packaging: With the introduction of ECO-FINA, Aquafina has developed a 100% recyclable plastic bottle which scores high on being environmentally friendly.

6. Differentiation: Aquafina has a differentiated product offering as well with its Flavored water products as well as in Sparkling water. Besides this, Aquafina body care and skincare products are also widely sold.

WEAKNESSES

1. High Competition: The presence of high competition such as Bisleri, Kinley, Bailey, etc. discourages an increase in market share for Aquafina.

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2. Misuse of empty bottles: There have been various examples wherein empty branded bottles have been used to refill with impure water and this affects the image of the company.

3. Lack of differentiating factors: In the Packaged waiter section, Aquafina does not have much to differentiate from the other brands

OPPORTUNITIES

1. Distribution: Increasing the distribution of the product is the best way and the only way that Water companies can sell higher numbers. Water is a universal requirement, so the farther and wider the brand is present, the more will be the sale. Of course, production and shelf life are a bottleneck to distribution as well.

2. Increasing Awareness: There has been an increasing awareness towards Pure and hygienic water, which is a boost to the packaged water industry. 3. Acquisitions: Aquafina should look to acquire competition in order to expand market share and reduce competition.

4. Tie-Ups: Aquafina should look for more tie-ups with hotels, restaurants, sports teams, etc. which increases its sales as well as promotions.

THREATS

1. Water shortage: Water shortage is a major threat to Aquafina because the government might decide to limit the water supply to packaged drinking water companies. These companies are selling the water back to consumers when there is a shortage of water supply. Many consumers have a problem with this because they believe that mineral water companies should not be supplied water in the first place and it should go to consumers.

2. Low Capital required: Packaged water industry is a low capital intensive industry especially at the local level and hence it is easier for new entrants to enter the market.

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3. High brand switching: When it comes to packaged water, people do not generally have a brand preference and hence sales are dependent on retailer/seller. As long as it's packaged drinking water and the people are thirsty, they will take any brand presented to them.

4. Local Competition: Local Competition also becomes a deterrent to growth in the industry and hence rise of Local competition is also a threat.

Conclusion: A luxury good or service is one whose income elasticity exceeds unity. A necessity is one whose income elasticity is less than unity. Luxuries and necessities can also be defined in terms of their share of a typical budget. Luxury goods are not needed for survival, and are things that the consumer wants but do not need. While the purified drinking water is more important because clean water is one of the human needs.

In summary, luxury goods are only good whenever the economical conditions are good as well; people are more confident in spending therefore they can allocate money to things that they don't need. On the other hand, although not that attractive, essential goods are still important due to what they satisfy. both have specific purpose and caters to different degrees of demand within the market.

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