Download A Change in Paradigms: From Tap to Bottled Water

A Change in Paradigms: From Tap to Bottled Water.
The U.S. bottled water market has shown significant growth since 1999. According to the
Beverage Marketing Corporation, bottled water consumption in the US surpassed that of milk, coffee, or
beer in 2003, and accounted for 12% of all liquid intake. The concept of buying bottled water is
relatively new but vastly expanding in this country. New names continue to enter the bottled water
market; some are international leaders, some are local manufacturers. Moreover, some non-beverage
companies have seen the tremendous potential in the bottled water market and have gambled that their
brand image will help them sell water. One such entry is Speedo Sportswater, which is a "low-carb"
(sic) enhanced water ... At the same time, there has been a great deal of emphasis placed on Americans
making sure they drink the "recommended" amount of water with an ever bigger emphasis on health and
dieting. So, why buy a bottle when you can drink from the tap?
Some of the most apparent reasons are environmental conditions of local water sources. There
are many areas in the U.S. where tap water is a very real concern for residents, and the water quality is
at minimum questionable there. On the other hand, there are places like Minnesota where the quality
of tap water is very high, yet the bottled water business is flourishing. How to explain this
phenomenon? I placed the goal of my cross-collegiate research on finding reasons for the growing
popularity of bottled water, comparing marketing strategies in different regions in the U.S. and abroad,
and examining whether the quality of bottled water exceeds that of tap water. I want to investigate
what contributes to successful water marketing in the U.S. and find out if the same factors influence
the sales in some European countries that are well known for bottled water production.
One part of my research is surveying populations of water consumers in Duluth and
Minneapolis. I expect to find out through these surveys the percentages of people who drink tap or
bottled water, learn where bottled water is most often consumed (out/on the go, at home, at school, etc),
and other relevant information. By conducting the survey, I will obtain knowledge about the age groups
of bottled water consumers, their brand and price preference, and the most popular occasions for drinking
bottled water. I will be able to see if males and females have a difference in preferences for bottled water
and if participation in sports and the presence of children in the family influence the consumption of
brand waters.
The second part of my research is studying the bottled water market drivers and
predicting the future of the industry. Here, it is very helpful to address the French brand water
market, since it is older and more established than the American market. In fact, the French
trend toward bottled water was the catalyst of bottled water expansion in the U.S. Additionally,
famous French brand water company Evian when launching its new advertising last year, put a
major stress on the abilities of their water to eliminate the human body's toxins, making a
person feel better and refreshed. With the strong drive toward a healthier lifestyle including
diet and exercise, how long would it take American water brands to launch similar advertising?
In fact, Aquafina has already caught the trend and now claims that "drinking more water
promotes better looks and health".
Another aspect of my research is investigating whether bottled water companies sell us
what we expect to get in terms of quality. Some people argue that bottled water has a better
taste, although taste is a personal perception. The supporters of bottled water claim it is safer
for consumption than tap water. However, some international corporations that produce brand
waters have had problems related to water contamination. One such example is the Perrier
water contamination scandal of several years ago. Evian water, which is famous for its pure
glacier extraction, is planning on opening a plant in the Czech Republic! At the same time,
Perrier has been embroiled in political and environmental controversy for trying to open new
wells in Wisconsin. Whether consumers will taste the difference or not is one question, but it is
obvious that those who drink Evian or Perrier will be paying for the name rather than the
origin. This is why I plan to compare the quality control results and statistics of various
national and international bottled water producers in order to conclude which brand names
really provide consumers with good quality water.
By doing this research with the help of my Marketing and French Advisors, I will
considerably improve my knowledge of marketing and bring it to an international level, which
includes understanding of cultural differences. I feel prepared to do these cross-cultural
comparisons by applying the knowledge obtained from my French Minor. I will develop
insights on successful advertising, consumer wants and needs, and the factors that influence
marketing strategies in different regions and countries. The experience that I will gain from
my research paper will be very important for my Marketing with International Perspective
major. I also find it very relevant to growing market globalization and brand competition to
address the European bottled water market. I intend on concentrating on one of the leading
global bottled water manufacturers-France, represented by Danone Corporation. Danone
controls 14% of the global bottled water market. I also plan to translate a summary of my
work into French, as an outgrowth of the substantial time devoted to detailed investigation of
French-language web-sites and to printed materials published in French. By performing this
investigation, my French proficiency will improve considerably, especially in the Business
and Advertising field.
TIMETABLE
My research will begin on January, 1 and will end on May, 31.
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3 weeks: Literature survey and secondary data collection
2-3 weeks: Survey instrument development
2 weeks: Pilot Study
1-2 weeks: Revision of the instrument
I week: Data collection in Minneapolis
1 week: Data collection in Duluth
1-2 weeks: Data cleaning and data entry
1-2 weeks: Data analysis
2 weeks: Report writing and making a 8 page summary and translation into French
BUDGET
Stipend for 120 hours of work at the rate of $11.67 per hour and $300 for expenses.
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Gasoline for a trip to Minneapolis for conducting a survey $147.00
Boarding and Lodging for 1 night-stay in Minneapolis $100.00
Copying and Printing $53.00