Bottled Water Case Study

The bottled water industry is a market with a vast range of competitors. When it comes to creating and importing a new label or brand, one must consider many factors. These factors include cost, the amount of water consumed in the market, competition rates, requirements and regulations in the country in which the water will be sold. In Stan Otis’ case, he wanted to import bottled water from Iceland into the United States. The U.S. market was the first that he evaluated. With bottled water having a smaller percentage of market share over juice and carbonated drinks in 2007, an increase in the range of consumer markets for bottled water was witnessed. Only five states accounted for 70% of bottled water consumption with California having the highest rates. Although there was an increase in the market, consumption …show more content…
From consumer preferences to financial or economic situations, there are many possibilities for the differences in market share. The economic factors are the biggest impact. When the economy is doing well and prices are low, customers are more likely to buy imported water as they can afford to purchase it. However, if the economy is having a difficult time, customers will not be able to buy the imported water or will prefer domestic water instead. In addition to this, health concerns are another factor that can influence market share. With health trends varying from year to year, customers will purchase more water in an effort to be healthier. If consumers feel as though imported water is the healthier or the trendier item during that time, then they will most likely purchase the imported product and raise the market share. In addition, the weather may have an impact on customer’s purchasing decision. Depending upon the weather of the year, consumers my prefer to have water over other drinks and if those consumers desire imported water, then the market share will increase. Many factors can impact the market share the imported water has in the water