Bottled Water Essay

860 Words Jul 30th, 2012 4 Pages
BOTTLED WATER ASSIGNMENT

Bento, Alexandra
Martinez, Rafael

Aqua Panna is an Italian bottled water company that nowadays is sold in Europe and North America, and it is sold through Nestlé’s distribution chain. It is well known in most of European countries, for that reason we believe that this brand would be easily identified by Latin American customers. We decided to undertake an external analysis in order to identify the barriers that this company would face entering into the Venezuelan bottled water market.
The local market is vastly dominated by 6 principal brands: Minalba, Nevada, Los Alpes, Zenda, Aqua Matter and Canaima. The most share of the market is hold by Minalba and Nevada which are brands of Pepsi and Coca Cola
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It means that the rate of increasing is 0.3% per year. 2. Changes in climate condition around the world had impacted negatively in the weather in this country. Nowadays, it is in average 2 Celsius degrees warmer than 10 years ago. For that reason the water consumption has increased. 3. New technologies in bottling and distribution contribute to a decrease in prices. Making this product more accessible to a larger part of the population.

Evaluating Venezuelan market through Pestel model, we found out that this country is a high regulated market. In Venezuela there is an insecurity legal framework, as the current government is applying pressure to the private sector. In addition, Venezuela has an economical control, in which companies have no access to foreign currency in a free market. Thus it could be expensive to invest in new technologies for setting a new business. Moreover, in Venezuela there is a high level of poverty and the quality of the municipal water is very low. For that reason, people are push to buying bottled water for the regular consume.
As the government tends to regulate almost every aspect of the economy, there is a huge legal framework that the company will face for entering in the market and also there are several regulations in terms of the environmental protection.
In our opinion there is a good business opportunity investing

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