Product Reassessment

Product Reassessment: Market Reposition Name Course Professor Date Product Reassessment: Market Reposition A changing preference has been observed with the consumers of beverages in the US. Research indicates that up to 25% of the total liquid consumed by US citizens was carbonated soft drinks (CSD). This was earlier in the decade. However, comparing the consumption of CSD and bottled water, the former was consumed more. This includes 15 billion gallons of CSD compared to 4.7 billion gallons of bottled water. This is a little reduction in the water consumption placing bottled water as the number five preferred beverage. This comes after CSDs, milk, coffee and beer. However by 2008 the consumption of water increased by 15% to 8.7 billion gallons of water while CSD went down to 14 billion gallons. According to the Beverage Marketing Association, the growth of bottled water consumption increased tremendously and passed that of CSD and as a result its revenues also increased. The revenue rose from $6 billion in 2000 to $12 in 2007. As a result many companies entered the market for bottled water in order to reap from its sales. There was an increase in competition between big multinationals like Nestle and PepsiCo and other smaller firms that entered the market (Trout 1996). The average American drinks up to 10 crates of water each year. The increase in demand for water was influenced by a belief that municipal water was not that safe for drinking. People sought safe drinking water and opted for bottled water. Up to 54% of Americans drinks bottled water. This constitutes of more than half the population. The number of regular consumers of bottles water is 36%. The consumption of bottled water has been on the rise over the years and so is the revenue. The number of brands of bottled water that exist in the US alone is 700 and this is bottled by 430 facilities around the country (Trout 1996). This growth in the number of bottled companies is as s a result of the increase of revenue from the bottled water industry. A product such as bottled water has few distinctive features to set it apart. This means water packaged by different companies will often have the same taste. This taste doesn`t differ from tap water which can be got for free. The segmentation of the bottled water is divided into three parts. This constitutes of the Product features, the water source and means of marketing. The features include still, sparkled and flavored water. Still bottled water has a wide preference with up to 78% in the worldwide volume and reaching 72%in global value. Flavored water includes additional nutrition elements like vitamins and minerals. Flavored and still water has a wider market than the sparkling water. The water sources also influence the market for bottled water though to a small extent. Water sources include natural springs and purified sources .However; consumers are not so keen on the sources of the bottled water. The most important aspect when considering the reposition of bottled water is the means of marketing. These include the retail channels or the non retail channels (Off-trade and on-trade). Non retail channels seek sales on premises like the hospitali...