Macro Environmental Forces Slept Analysis Marketing Essay

Macro environmental Forces Slept Analysis Marketing EssayThe fiscal crisis initiated four years ago has been the reason for purchasing cuts on both dispensable products. Bottled irrigate has been perceived as one of them and, therefore, its consumption has pretty decreased (Mintel, 2012). Consumers atomic number 18 non keen whatsoever more to reach for unnecessary goods and services, especi completelyy, those which can be substituted for other alternatives, for instance, the consumption of tap wet system in replace of bottled weewee. This could suggest that the issue has influenced the consumers sound judgment by inciting them to booze tap pee rather than to spend extra money on roughthing which can be obtained for an extremely cheap monetary value. Thus, the companies find themselves in a survey where they take on to reduce the price of their products in ordinate to confine the business afloat.According to the advancedspaper reporter Smithers (2009) from the Guard ian, the immediate impact of this credence crunch meant a declination of 9 % on number of bottles sell in the UK.http//www.guardian.co.uk/lifeandstyle/wordofmouth/2009/mar/23/bottled- pissing supply-sales-fallThe companies have leaseed to find a reason which could motivate consumers to appreciate the benefits of bottled water and, hence, motivate them to purchase it as the economy has be find an issue preventing its sales even though it is currently showing a s disordered improvement (The Guardian, 2012).http//www.guardian.co.uk/business/2012/oct/25/british-economy-recession legal FACTORSSpecification of components and labelling requirementsBottled water companies production in the UK is restricted by laws at European and national level which not only concern with the security of consumers only if alike the protection of the environment (Bottled water information, no date).The nutriment standard legislation is one of those regulations and it defends the rights of the consum ers from existence mislead when purchasing a food product ( intellectual nourishment Standards Agency, no date). As a result, bottled water producers be obliged to state the components of the water ensuring the clients aw beness of them.The labels of their products must specify these constituents. However, the requirements and rules on the berth and labelling are different depending on the water category natural mineral water, bottled drinking water and spring water (Mendip District Council, 2010).http//www.mendip.gov.uk/CouncilService.asp?id=SX9452-A7808400 internal mineral waters must diminish from a recognised subway system source and can only be subject to very express treatments. Any water labelled spring water must eff from an underground source and meet certain exploitation and labelling requirements but does not need to be from an officially recognised source. Bottled drinking can come from any water source and has fewer labelling restrictions than the other two cate goriessurgical incision of Environment, Food and Rural Affairs (no date).The aim of this regulation is to stop the white plague of ozone-enriched air, in the case of the spring water, as disinfectant treatment and to arrest a better healthcare by reducing the toxic substances.The bottled water producers have to make sure to follow these rules before placing their products in the mart place place.Regulations to reduce environmental impactsBottled water may be a hard impact on the environment and, for that reason there are animated harsh rules which determine the way companies have to operate in order to maintain the impact to the lowest.Companies have to ensure they expend the natural resources in a sustainable way (Bottled water information UK, no date) because the web site has come to a stage where their contribution in pollution is genuinely significant. The production of fictile bottles and the tran swordplayation of water have actively change the medium. Every year mor e than 3.5 billion pounds of PET plastic bottles come to be roadside litter, worthless material (Hays, no date, p15)and most other large quantity is burned liberating harmful pollutants into the atmosphere.Some companies have tested to improve their blemish image by launchinginitiatives with environmental address like plastic neutral and zero waste. However, campaigners still believe that generating and fade plastic bottles are catastrophic to the environment in any linguistic context (Manchester Evening News, 2009).The Environmental Agency, the institution standing for the care of the environs, has dictated the Environmental Permitting Regulations 2010 which controls this liberation of contaminants into the air from large and multiple industrial operations (Environment Agency, no date).The bottled water producers are forced to find a way not to surpass these established limits as their infringement could lead to serious consequences. semipolitical FACTORSThis constancy has c onstantly been affected by a succession of prejudicious impacts as it has been seen previously. However, it has as well as taken advantage of opportunities which have been presented through validatory factors. One of these opportunities is the health report given by the government which remarks the immenseness of drinking water, being hydrated .This health report is the new marketing strategy that the business needed in order to re-position itself in the market.Consumers get off to take more consideration for their health. Nonetheless, the main cigaret that the government is intending to speak to is children as the obesity and other health issues are rapidly change magnitude in their sector (National Health Service Information Centre, 2012, p24) .They hope to influence them to follow a healthier lifestyle.http//www.ic.nhs.uk/webfiles/publications/003_Health_Lifestyles/OPAD12/Statistics_on_Obesity_Physical_Activity_and_Diet_England_2012.pdfThe Health Protection Agency, a d epartment which concerns with the health issues, wants to prevent and significantly reduce the morbidity and deathrate arising from gastrointestinal disorders and other health effects, by ensuring that adequate measures are taken to improve access to safe and affordable water and adequate sanitisation for all childrenHealth Protection Agency (no date).This is a clear adventure for the bottled water producers to stand and succeed generating a product which appeals to this especial(a) commit audience. Different sizes of bottles which can fit in their hands or in their launch box. Moreover, it has helped to create new advertising campaigns that promote and highlight the gains available from bottled water, for type, Nestls pure life 2011 advertising campaign (YouTube, 2011).http//www.youtube.com/watch?v=oS5P9Y-ah3sSOCIAL FACTORSThe bottled water industry has witnessed certain social aspects occurred in the away world which have sometimes jeopardized its place in the beverage mark et. Nevertheless, some others factors have as well become new doors for the business to expand.The conditions of tap water and its taste have caused a harvest-feast of tension among good deal. Consequently, consumers have started demanding something purer with nutrients and vitamins (McQueeney, 2012). It is hence that the bottled water producers have realized the need of creating a product which suits the requests of this particular type of customer. They have understood their message by launching a range of bottled waters with different flavours widening, in this way, their choice (Jones, 2009). Volvic is clear example of one of those companies which has grasped this opportunity.http//www.beveragedaily.com/Markets/Flavour-and-function-triumph-in-bottled-water-marketAnother revolutionary social fact that changed the industry is the face lift of body/health consciousness (NamNews, 2010). Society has become increasingly obsess with their body shape to the point of being selectiv e with the food and the drinks they consume.Food and drink production companies noticed that a place was being created for products low in calories which meant a new way to develop business (Public dealing Web, 2012). The bottled water market is one of the industries that considered that it was coming to be a healthy and relevant market. Therefore, they strived to find a way to connect fitness with water (Forsyth, 2010). They created advertising campaigns where the characters (with great bodies) were involved in some kind of sport or activity. They were effective because people started to perceive water as indispensable for active life. However, there still was the need to portray that, to have the high hat of the bodies, the best water had to be consumed. That is exactly what Evian did.http//www.prweb.com/releases/food_additives_acidulants/fat_replacers_sweeteners/prweb10148697.htmhttp//www.bbc.co.uk/ tidings/business-11813975The cut vane name Evian recognised the growing, w ider health and fitness trend and exploited it to the full by marketing their bottled water the ultimate health and wellness productForsyth, H. (2010).Bottled water was now being included as part of the shopping disposition and its demand has rapidly increased as people live a more beneficial life (BBC Two, 2010).http//www.kamcity.com/namnews/asp/newsarticle.asp?newsid=41408https//release.worc.ac.uk/watch.php?r=ZC72HMLNTECHNOLOGICAL FACTORSFor any bottled water company, the expense to arrest its products requires constant analysis at all levels. The extensive companies keep becoming stronger, coercing the suppliers to enhance quality and productivity but diminishing costs (Pall Corporation, 2006). This could be possible with the apparition of a new revolutionary way of production that could actually achieve that The hollow part membrane technology.http//d2xjwcgentlu24.cloudfront.net/pdfs/Food-and-Beverage/Bottled_Water_App_Bulletin.pdfThis innovation is based on the separation of both gaseous and liquid elements. It has been demonstrated that the membranes work in water treatment. As a result, its development still proceeds. Nevertheless, there are few remaining problems that need to be solved (Stanford Research Institute International, no date). The European kick (2010, p9) also agrees with that. For that reason, it also emphasizes the relevance of this problem which makes it point of decoct in its investigation.http//www.sri.com/work/projects/advanced-hollow-fiber-membrane-water-purificationhttp//ec.europa.eu/research/environment/pdf/membrane-technologies.pdfMICRO-ENVIRONMENTAL FORCESThe bottled water industry has set about some internal aspects occurring in its environment which have been harnessed fittingly in order to help the business boost its sales emulous advantage within the cushy drink market, gizmo of bottled water, rise of decoct on better healthcare, increase of eco-friendly following ,etc (Mintel, 2012).COMPETITORSThe successful outc ome and conduct of a company depend on the competition level in its market (Oxford University Press, 2007). Thus, companies must identify their relevant competitors in order to generate the most efficient marketing strategy to obtain profits and also help them become the leading company in their product category.The bottled water producers have made sure to achieve a developed agonistical advantage which has helped them gain position (Mintel, 2012). For that reason, it is wrong to believe that tap water is the industry main competitor.Bottled water is currently occupying a high position in the market competing in the same level as soft drinks. It has maintained competitive prices by offering the minimum cost which has turn out to be effective as it continues to be appealing to those customers seeking survey for money (Mintel, 2012).The soft drink industry has struggled to sell its products referable to the disapproving publicity causing consumers to change their drink choices f or healthier ones (Highbeam Business, 2012). This has meant a coarse opportunity for the bottled water brands to gain popularity over their competitors. That is the reason why some big distributors of soft drinks, such as Coca-Cola and Pepsi, have realized the need to also get involved in the distribution of bottled water (i.e. Dasani, Aquafina) with the interest of expanding the business (McWilliams, 2010). However, some have succeeded in this purpose more than others. instantly bottled water is the fastest-growing beverage category in the world (FiberWater, no date) contempt their rivals try hard other strategies to recover their losses and regain market share.CUSTOMERSThe number of consumers that see their lives as time-pressured grows every day (Mintel, 2012). According to this fact, convenience becomes an important factor influencing their decisions when purchasing a drink or a food product (Wales, 2009). That explains the growth of microwave dinners, drive-thru windows and o nline purchasing of groceries. However, there are other reasons that make bottled water convenient. When people buy it, what they are buying it is not the water so much as the bottle, what they are buying is the convenience of the package at that moment (Fisherman, 2010). If one finds himself in a situation where there is need of drinking water while being out (without availability of tap water), the first thing that would come to mind is to buy a bottle of water from the nearest store. In short, this suggests that what the industry is actually selling is the benefits of the product (portable, opportune at the needed time) which is what the customer wants, rather than product itself.The focus of the customers on convenience is good news for the industry as they gradually switch to the appropriateness of the beverage (Australasian bottled water institute, no date) with the extended variation of leisure activities, travelling and also the growth of life out home.http//www.bottledwater .org.au/scripts/cgiip.exe/WService=ASP0003/ccms.r?PageId=5002SEGMENTATION, TARGETING POSITIONINGThe bottled water companies need to recognize and fall upon their potential markets. They need to break them down into different segments using demographic variables, psychographic variables and/or behavioural variables. Once this step is fulfilled, they have to evaluate the relevant segments and decide which ones to target. Finally, they design the product which meets the requirements of their targeted audience (Adcock et al., 2001).The market can perhaps be divided by using different variables. However, the most relevant for the bottled water industry is probably the behavioural variables non-users, light, moderate or operose users (E-learn portal, 2012). For example, according to Euromonitor (2002) the bottled water consumption was heavy in Italy with an sightly of one hundred fifty-five litres per person a year while it was light in Finland with an comely of 14 litres per person .http//www.elearnportal.com/courses/business/consumer-behavior/consumer-behavior-market-segmentationhttp//www.nationmaster.com/graph/foo_bot_wat_con-food-bottled-water-consumptionEVIANEvian is UK leading brand specialized in the distribution of bottled water (BBC, 2012). It is part of the product mix supplied by the French company Danone.http//www.bbc.co.uk/news/uk-scotland-scotland-business-19743806The brand is generally aimed at heavy mineral water drinkers (Nielsen, 2009). However, on a detailed basis, Evian targets people of all ages mums, babies, children, seniors and also people who carry an active lifestyle (Evian PET bottles), for example, students. Moreover, it also aims at restaurants, hotels and nightclubs as that explains the existence of Evian glass bottles (Evian, no date).A lot of people would say water does not offer too many opportunities. Nevertheless, Evian has achieved positioning its brand in the tribute market by gaining from every erect concerned for the hea lth of their newborns (Michael, 2012). Evian uses a unique brand communication which proves to be effective. It was clearly reflected on their advertising campaign under the slogan remain Young (Lab Brand, 2009).Brand Positioning on Emotional Benefitshttp//www.labbrand.com/brand-source/evian-strives-brand-differentiation-build-brand-equityEVIANS MARKETING imminglePRICEEvian wants the customers to distinguish their product as being a opulence from Mother Nature consequently, they price it at the premium level (Fisher, 2012). This is due to the reliance they have developed over the years since the establishment of the brand. The price is what gives standard to their product line (Kapferer, 2008).The following image gives an idea of the average price of Evians product line in Tesco.Figure 1 Evian brand price at Tesco (My supermarket 2012).PLACEEvian clearly distributes its bottles through supermarkets, such as, Tesco, Asda, Waitrose, Ocado and Sainsburys (My supermarket, 2012). Simi larly, they use some smaller retailers as their supply channel as it is a wider way to reach their customers.In some occasions, the brand may also be placed in deal machines as it can be seen in the picture below.http//t3.gstatic.com/images?q=tbnANd9GcRL-LKivJKsbaGbwI7qTyEq0EG-7BkObbtFCXPi_ykx8sFpS33eoQFigure 2 Evian bottles in a vending machine (Source Google, 2011).PRODUCTThe brand offers ranges of bottles suited to each of their different target audiences. For example, the PET bottles for sports practitioners and the glass bottles for the restaurants. It is noticeable that the firm uses different materials to generate its bottles plastic bottles, resistant to movement, and glass bottles, more delicate, sign of sophistication (Evian, no date). In addition, Evian offers its water in bottles of different sizes adapted to the convenience of the customer.http//www.evian.com/files/contents/38/bottles_PET_BE.pngFigure3 Evian bottles in different sizes (Source Evian, no date).PROMOTIONI t uses different ways to glide by its message to the target audience with the interest of creating a connection amongst them and the product. Some of the various effective techniques they utilize to make that possible are brand endorsement and advertising through different channels. In addition, the brand is sponsor of sport icons like Maria Sharapova (The drum, 2012).Figure 5 Evians billboard advert (Source Google 2012).Figure 4 Evians brand endorsement (Source AdWeek 2006).http//t3.gstatic.com/images?q=tbnANd9GcSwg1SFW7p_fwN4mSlHvY0Pdu9WHXFWizkyTgMIYXuRCfBouuoqCYvGtj1bSA http//t2.gstatic.com/images?q=tbnANd9GcQ9zwxjho_G7ARm8PA5qhZORnp-MylAVKZVyPCrw_cIxunvbXiKLwhttp//liamsmarketingandprblog.blogspot.co.uk/2012/11/analysis-and-swot-analysis-of-one-brand.htmlhttp//books.google.co.uk/books?id=8PoItiB7bicCpg=PA235lpg=PA235dq=evian-+premium+pricesource=blots=ewZc0xoEWBsig=_b3qj2975SIOafxq1j49xu89Ldghl=ensa=Xei=NO61UO_yLYiH0AW69YHoBgved=0CFkQ6AEwBgv=onepageq=evian-%20premium%20pricef=f alsehttp//www.mysupermarket.co.uk/brands/evian_in_tesco.htmlhttp//www.mysupermarket.co.uk//tesco-price-comparison/mineral_water/evian_natural_still_mineral_water_2l.htmlhttp//www.google.co.uk/imgres?q=Evian+bottles+in+a+vending+machineum=1hl=ensa=Ntbo=dbiw=1366bih=653tbm=ischtbnid=Ut337L89YKN7rMimgrefurl=http//vintage.johnnyjet.com/folder/ account/France-South-Nice-Aix-en-Provence-DiScala-Wedding-Chateau-Grimaldi-Best-Western-2011-7.htmldocid=Wxlz77d416FJLMimgurl=http//vintage.johnnyjet.com/photos-2011/Nice-France-June-2011-176.jpgw=640h=480ei=SOu5UJXeGcLF0QWAqIHIAwzoom=1iact=rcdur=399sig=113099667739855397104page=1tbnh=143tbnw=212start=0ndsp=23ved=1t429,r22,s0,i157tx=131ty=95http//www.evian.com/en_GB/54-evian-PET-bottlesJames Blake is cool, but can he heat up?http//www.google.co.uk/imgres?q=evian+billboard+adsstart=185hl=ensa=Xtbo=dbiw=1366bih=653tbm=ischtbnid=Op4ec1VRnuLuXMimgrefurl=http//www.artrick-playground.com/article/Evian-T-Shirts-Are-Back/3247/1024811docid=4RFzSZrgBnMPyMim gurl=http//www.artrick-playground.com/static/images/3247/Evian-T-Shirts-Are-Back_1024811_profile.jpgw=440h=330ei=XuO5UP2CGqrQ0QWln4GgBgzoom=1iact=hcvpx=1066vpy=301dur=485hovh=194hovw=259tx=147ty=66sig=113099667739855397104page=8tbnh=149tbnw=214ndsp=34ved=1t429,r78,s100,i58http//www.thedrum.com/news/2012/06/28/evian-extends-sponsorship-deals-maria-sharapova-and-wimbledon