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Bottled Mineral Water

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Water is life. Its consumption is essential to every living creature. The water market has seen multiple evolutions over the last few years. Today, the consumption of water is distributed between bottled tap water and plain water. When we consider plain water, there are two segments, i.e., spring water and mineral water. The market comprising the bottled mineral water, which has not ceased its development since the Fifties, answers the current requirements of the consumers.

A recent survey concluded France the second highest consumer of mineral water just after Italy. The market is dominated by three large leaders, i.e., Danone, Nestle and Manor House-Neptune. It is therefore interesting to study the strategies which these leaders use to cater to the requirements of the French consumers. In part one of our research, we will analyze the evolution of the market demand for bottled mineral water. Then, we will observe the offer of the companies in relation to the expectations of the market. In the concluding portion, we will define the strategies adopted by these leaders.

The changing demands on the French market:
Each year, around 6.6 billion bottles are consumed by 95% of the French households. The increase in consumption of bottled water is a trend based on the consumers' need for natural water.
With nearly 150 liters of bottled water consumed annually per capita, France occupies the second place in Europe behind Italy (200 liters per year) in the mineral water market, which is facing poor quality of tap water in certain areas.

Presentation of the overall market:
To successfully adapt to change, businesses need a clear vision of what company sales will look like in the future and what it takes to achieve their objectives. In other words, they need a strategy.

Having a strategy means knowing what you want and how to get there. A widely used tool for the formulation of the strategy is the SWOT analysis model. It is actually an analysis that combines the threats and opportunities of the external environment. It brings together the resources and internal skill requirements arising from the external environment. In this case, only the external data will be studied. These are studied in the form of the following variables:
- Consumer Buyer
- Environment
Sociocultural aspects
Legal and regulatory aspects
Natural aspects
Demographic aspects
Economic aspects
- Competition

We will conduct an analysis of the external market environment of bottled mineral water based on the SWOT analysis, resulting from a strategy to monitor trends and evolve with market changes.

Despite emerging competition from regional brands and independent brands, which have a relatively low price, the three major market leaders have a large portfolio of brands. The consumption of bottled water in the world as well as France is increasing. It focuses mainly on industrialized countries. Also, some continents hold out potential for the future of the market especially in Asia and the Pacific, where consumption is growing very rapidly (on average more than 15%).

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