Download as pdf or txt
Download as pdf or txt
You are on page 1of 50

A STUDY ON THE PACKAGED DRINKING WATER

INDUSTRY
CAPSTONE PROJECT REPORT

MASTER OF MANAGEMENT STUDIES

Specialization- Marketing

Name of student- Sankar Lingam .B. Konar

BATCH- 2022-2024 Roll No- 22

SIES COLLEGE OF MANAGEMENT STUDIES

NERUL, NAVI MUMBAI 400706

Page 1
A STUDY ON THE PACKAGED DRINKING WATER INDUSTRY

CAPSTONE PROJECT REPORT

SUBMITTED

AS A PARTIAL FULFILMENT OF THE CURRICULUM

FOR THE DEGREE

OF

MASTER OF MANAGEMENT STUDIES (MMS)

SIES COLLEGE OF MANAGEMENT STUDIES

NERUL, NAVI MUMBAI

BY

SANKAR LINGAM BALASUBRAMANIAN KONAR

ROLL NO – 22

MARKETING

Page 2
Declaration

I, Mr. SANKAR LINGAM BALASUBRAMANIAN KONAR, studying in


the second year of MASTER OF MANAGEMENT STUDIES at SIES College
of Management Studies, Nerul, Navi Mumbai, hereby declare that I have
completed the Capstone Project titled “A Study On Packaged Drinking Water
Industry” as a part of the curriculum requirement for MASTER IN
MANAGEMENT STUDIES.

I also declare that the work undertaken by me is original and has not been copied
from any source. I further declare that the information presented in this project
report is true and has not been submitted to SIESCOMS or any other Institute for
any other examination.

Signature of the Student Date:

Name of the Student: SANKAR LINGAM BALASUBRAMANIAN KONAR

Roll No.: 22

Page 3
CERTIFICATE BY THE FACULTY GUIDE

This is to certify that Mr. / Ms. SANKAR LINGAM BALASUBRAMANIAN


KONAR, studying in the second year of course name program at SIES College
of Management Studies, Nerul, Navi Mumbai, has completed the Summer
Internship Project titled “A Study On Packaged Drinking Water Industry” as
a part of the curriculum requirement for program for M.M.S.

Signature of the Faculty Guide

Name: Mrs. Suma Nair

Date: 22/07/2023

Page 4
ACKNOWLEDGEMENT

I would like to express my profound gratitude & would like to express my


special thanks to my mentor Mrs Suma Nair, SIESCOMS for her time and
efforts she provided throughout the year. Your useful advice and suggestions
were helpful to me during the project’s completion. In this aspect, I am eternally
grateful to you.

I would like to acknowledge that this project was completed entirely by me and
not by someone else.

Signature

Sankar Lingam Balasubramanian Konar

Date:

Page 5
EXECUTIVE SUMMARY

The packaged drinking water industry continues to be a cornerstone of the global


beverage market, offering consumers a reliable source of safe and convenient
hydration.

Manufacturing processes play a crucial role in ensuring the safety and quality of
packaged drinking water products. Stringent filtration, purification, and quality
control measures are employed to meet regulatory standards and consumer
expectations. Marketing strategies focus on highlighting the purity, convenience,
and health benefits of packaged water, targeting diverse consumer segments
across retail, institutional, and online channels. Distribution networks are
evolving to meet changing consumer preferences and market dynamics, with a
growing emphasis on e-commerce, direct-to-consumer models, and sustainability
initiatives.

Consumer preferences and trends in the packaged drinking water industry are
shaped by factors such as health consciousness, environmental awareness,
lifestyle changes, and technological advancements. Future trends are expected to
revolve around health and wellness, sustainability, premiumization, functional
beverages, smart packaging, personalization, and e-commerce. By anticipating
and adapting to these trends, stakeholders can position themselves for success in
an industry poised for continued growth and innovation, driven by the ongoing
demand for safe, convenient, and sustainable hydration solutions.

Page 6
TABLE OF CONTENTS

Content Page No

Introduction 8

Literature Review 12

Objectives 13

Research Methodology 15

Secondary Data 18

Manufacturing Process Of Packaged Drinking Water 22

Marketing Strategies Of Packaged Drinking Water 25


Industry
Sales & Distribution Of Packaged Drinking Water Industry 29

Servings & Usage Context of Packaged Drinking Water 36

Advantages Of Packaged Drinking Water 39

Future Trend Analysis of Packaged Drinking Water 43

Conclusion 48

References 50

Page 7
Introduction

The packaged drinking water industry has emerged as a significant player in the
global beverage market, catering to the ever-growing demand for safe and
convenient hydration options. With concerns over water quality and safety on the
rise, packaged drinking water has become a staple in households, offices, and
public spaces worldwide. This study aims to delve into the dynamics of this
industry, examining its evolution, market trends, challenges, and opportunities.

Evolution of the Industry:-

The history of bottled water dates back centuries, with early civilizations
recognizing the importance of clean water sources. However, the modern bottled
water industry emerged in the late 20th century, spurred by advancements in
packaging technology, changing consumer preferences, and growing concerns
over tap water safety. From humble beginnings to a multi-billion-dollar industry,
bottled water has undergone significant transformation, evolving from a niche
product to a global commodity.

The packaged drinking water industry has witnessed remarkable growth and
transformation over the years. From its humble beginnings as a niche product to
becoming a multi-billion-dollar sector, the industry has undergone rapid
expansion fuelled by changing consumer preferences and advancements in
technology. The proliferation of bottled water brands, varying in size, packaging,
and price points, reflects the diverse landscape of the market and the fierce
competition among manufacturers.

Page 8
Market Trends and Dynamics:-

The bottled water market is characterized by intense competition, diverse product


offerings, and shifting consumer trends. Key players in the industry include
multinational corporations, regional brands, and niche producers, each vying for
market share through innovation, marketing strategies, and distribution networks.
Market dynamics are influenced by factors such as pricing, branding, regulations,
and consumer perception, shaping the landscape of the industry and driving
strategic decision-making among stakeholders.

Several factors contribute to the growth and dynamics of the packaged drinking
water industry. Shifts in consumer behaviour towards healthier lifestyles,
increased awareness about the importance of hydration, and concerns over the
quality of tap water have driven demand for packaged water products.
Additionally, urbanization, rising disposable incomes, and the convenience factor
associated with bottled water consumption have further propelled market growth.
However, the industry also faces challenges such as environmental sustainability
concerns, regulatory scrutiny, and competition from alternative beverages.

Page 9
Challenges and Opportunities:-

Despite its rapid growth, the packaged drinking water industry grapples with a
host of challenges. Environmental sustainability has emerged as a pressing issue,
with concerns over plastic waste and carbon emissions associated with production
and transportation. Regulatory frameworks governing water quality standards,
labelling requirements, and packaging materials also pose compliance challenges
for industry players. However, amidst these challenges lie opportunities for
innovation and growth. The increasing demand for eco-friendly packaging
solutions, technological advancements in water purification and bottling
processes, and expansion into untapped markets present avenues for industry
stakeholders to thrive.

Environmental Considerations:-

Despite its popularity, the bottled water industry is not without controversy,
particularly concerning its environmental impact. The production, packaging,
transportation, and disposal of bottled water contribute to resource depletion,
plastic pollution, and carbon emissions, raising questions about sustainability and
ecological stewardship. As consumers become increasingly environmentally
conscious, there is growing scrutiny on the practices of bottled water companies,
prompting calls for greater accountability and alternatives to single-use plastic
packaging.

Page 10
Consumer Perceptions and Behaviour:-

Consumer perceptions and behaviour play a crucial role in shaping the bottled
water industry, influencing purchasing decisions, brand loyalty, and market
trends. Factors such as taste, convenience, health concerns, and social status drive
demand for bottled water, while growing awareness of environmental issues and
sustainability principles may impact consumer choices. Understanding the
motivations and preferences of consumers is essential for businesses to adapt to
changing market dynamics and enhance their competitive advantage in the
bottled water industry.

Regulatory Landscape and Consumer Preferences:-

Regulatory frameworks governing the bottled water industry vary across


jurisdictions, encompassing quality standards, labelling requirements, and
packaging regulations. Government agencies, industry associations, and
international organizations play crucial roles in ensuring product safety,
transparency, and compliance with environmental standards. Consumer
preferences for bottled water are influenced by factors such as taste, convenience,
health perceptions, brand reputation, and affordability. Understanding these
preferences is essential for industry stakeholders to tailor marketing strategies,
product offerings, and sustainability initiatives to meet evolving consumer
demands.

Page 11
Literature Review

In the literature review about the packaged drinking water industry, researchers
have explored various aspects, including market trends, consumer behavior,
regulatory frameworks, environmental impacts, and sustainability initiatives.
Studies have analysed the evolution of the industry, tracing its growth from a
niche market to a global phenomenon driven by changing lifestyles and concerns
over water safety. Additionally, researchers have examined the economic
implications of bottled water consumption, assessing its market size, revenue
trends, and competitive landscape. Consumer preferences and perceptions
regarding packaged drinking water have also been a focal point, with studies
investigating factors influencing purchasing decisions, brand loyalty, and
perceptions of product quality.

Furthermore, scholars have examined the environmental footprint of the


packaged drinking water industry, highlighting the challenges posed by single-
use plastic bottles, packaging waste, and carbon emissions associated with
production and distribution. Efforts to mitigate these environmental impacts have
led to innovations in packaging materials, recycling programs, and sustainable
sourcing practices. Regulatory frameworks governing the industry have also been
scrutinized, with studies assessing the effectiveness of standards and policies in
ensuring product safety, labelling accuracy, and environmental compliance.

Overall, the literature review provides a comprehensive overview of the packaged


drinking water industry, offering insights into its evolution, market dynamics,
consumer behaviour, environmental challenges, and regulatory landscape. By
synthesizing existing research findings, this review lays the foundation for further
exploration and analysis in this important field.

Page 12
Objectives

The objectives of the packaged drinking water industry vary depending on


various factors such as market demand, consumer preferences, regulatory
requirements, and company goals. However, some common objectives include:

1. Providing Safe Drinking Water:- The primary objective of the packaged


drinking water industry is to ensure the production and distribution of safe
and clean drinking water to consumers. This involves adhering to strict
quality standards and regulatory requirements to minimize health risks
associated with waterborne contaminants.

2. Meeting Consumer Demand:- Another objective is to meet the increasing


demand for convenient and portable hydration solutions. Consumers seek
packaged drinking water for its convenience, reliability, and perceived
purity, especially in areas where access to clean tap water is limited or
unreliable.

3. Maintaining Product Quality:- Ensuring consistent product quality is


essential for building consumer trust and loyalty. Industry players strive to
maintain high standards of water purity, taste, and freshness through
rigorous quality control measures and monitoring of production processes.

4. Compliance with Regulations:- Compliance with regulatory


requirements is a key objective for packaged drinking water companies.
This includes adherence to government standards for water quality,

Page 13
labelling, packaging, and manufacturing practices to ensure consumer
safety and transparency.

5. Environmental Sustainability:- Many companies in the packaged


drinking water industry have objectives related to environmental
sustainability. This may involve reducing the environmental footprint of
operations, promoting recycling and waste reduction initiatives, and
investing in eco-friendly packaging materials and production processes.

6. Innovation and Differentiation:- To stay competitive in the market,


companies often aim to differentiate their products through innovation.
This could involve introducing new flavours, functional additives, or
packaging designs to cater to evolving consumer preferences and lifestyle
trends.

7. Market Expansion and Growth:- Expansion into new markets and


segments is a common objective for packaged drinking water companies
seeking to grow their market share and revenue. This may involve strategic
partnerships, distribution agreements, or product diversification to tap into
new consumer demographics or geographic regions.

Overall, the objectives of the packaged drinking water industry are multifaceted,
encompassing aspects of safety, quality, compliance, sustainability, innovation,
and growth. These objectives guide industry players in their efforts to meet
consumer needs while operating responsibly and profitably.

Page 14
Research Methodology

▪ Secondary data:- Online resources and research papers on similar topics.

Research method chosen for this research

Secondary Data

The global bottled water market is expected to reach $647.7 billion by 2027, with
a compound annual growth rate (CAGR) of 7.3%.

The India bottled water market is ₹ 25.4 Thousand Crores in 2024 & It is expected
to reach 1 Lakh Crores market size Industry in another 15 years.

Rising disposable incomes, increasing health concerns, and growing urbanization


fuel the demand for packaged drinking water [Source: Zion Market Research].

Convenience, perceived purity, and on-the-go consumption habits drive


consumer preference for bottled water [Source: Grand View Research].

Premiumization is a growing trend, with consumers opting for functional water


enriched with minerals or vitamins [Source: Beverage Industry Magazine].

Sustainability concerns are pushing the development of eco-friendly packaging


solutions, such as bioplastics and refillable bottles [Source: Packaging Digest].

Page 15
Packaged drinking water has become an indispensable part of modern life,
ensuring access to safe and potable water for millions worldwide. Secondary data
regarding this industry spans a vast array of topics, from market trends and
consumer behaviour to regulatory frameworks and environmental impacts.

In terms of market trends, secondary data may include information on the


growing demand for packaged drinking water, driven by factors such as
increasing urbanization, rising disposable incomes, and concerns over water
quality. Data might highlight the market share of key players, regional variations
in consumption patterns, and emerging trends such as the demand for flavoured
or enhanced waters.

Consumer behaviour is another critical aspect illuminated by secondary data. This


could encompass insights into purchasing habits, brand loyalty, factors
influencing choice (such as price, convenience, or perceived health benefits), and
attitudes towards sustainability and eco-friendliness.

Regulatory information is essential for understanding the legal and quality


standards governing the packaged drinking water industry. Secondary data might
provide details on regulations related to labelling, production processes, safety
standards, and quality control measures enforced by governmental bodies or
industry associations.

Page 16
Environmental considerations are also of increasing importance in the packaged
drinking water sector. Secondary data may offer insights into the environmental
footprint of bottled water production, including data on resource use (such as
water and energy), carbon emissions, waste generation, and recycling rates. This
data can inform efforts to reduce the environmental impact of the industry
through initiatives like lightweight packaging, water conservation measures, and
increased recycling.

Additionally, secondary data may cover topics such as technological


advancements in water purification and packaging, competitive strategies among
industry players, distribution channels, pricing dynamics, and the impact of
external factors like health trends or economic fluctuations.

Secondary data regarding the packaged drinking water industry also sheds light
on the socio-economic implications of its consumption. This could involve
analyses of affordability and accessibility, particularly in regions where access to
clean drinking water is limited. Data might explore disparities in access based on
factors such as income level, geographic location, or infrastructure development.
Additionally, studies may examine the economic impact of the packaged drinking
water industry, including its contribution to employment, GDP, and local
economies through production, distribution, and retail activities.Furthermore,
secondary data often delves into the health considerations associated with
packaged drinking water.

Page 17
This may include research on the safety and purity of different brands,
contaminants found in bottled water, and comparisons with alternative sources
such as tap water. Data might also explore the health effects of long-term
consumption of packaged drinking water, including potential risks associated
with plastic packaging and additives used for flavouring or purification.

Moreover, the cultural and behavioural dimensions of packaged drinking water


consumption are subjects of interest within secondary data sources. This
encompasses studies on cultural attitudes towards water consumption, rituals or
traditions related to water, and perceptions of purity and cleanliness associated
with packaged versus tap water. Behavioural data may also investigate factors
influencing individual consumption patterns, such as peer influence, marketing
strategies, and perceptions of status or prestige associated with certain brands or
types of bottled water.

Overall, secondary data provides a comprehensive picture of the packaged


drinking water industry, informing stakeholders ranging from consumers and
businesses to policymakers and environmental advocates. By analysing and
interpreting this data, stakeholders can make informed decisions to ensure the
sustainability, safety, and accessibility of packaged drinking water now and in the
future.

Page 18
Consumer Preferences and Perceptions:-

I. A study by [Research Institution] found that 98% of consumers at social


gatherings prefer bottled water over tap water [Source: Reference the
specific study].

II. Safety and taste are the primary factors influencing consumer choice of
bottled water brands [Source: Citation for consumer preference study].

III. Consumers are increasingly willing to pay a premium for bottled water
perceived as healthier or environmentally friendly [Source: consumer
willingness to pay].

IV. Online reviews and social media influence consumer purchasing


decisions for bottled water brands [Source: online influence on bottled
water choice].

V. Concerns about plastic waste and micro plastics are leading some
consumers to switch to reusable water bottles or filtration systems
[Source: Study on plastic waste concerns and bottled water consumption].

Regulation and Public Health:-

I. Bottled water regulations vary across countries, with some regions


adhering to stricter standards than others [Source: World Health
Organization].

II. Regulatory bodies ensure bottled water meets quality standards for safety
and purity [Source: Source on bottled water regulations by specific
agency].

Page 19
III. Concerns exist about the potential leaching of chemicals from plastic
bottles into the water, particularly with prolonged storage or exposure to
heat [Source: Source on chemical leaching from bottled water bottles].

IV. Studies by [Research institutions] are ongoing to assess the potential


health risks associated with bottled water consumption [Source: Specific
research references on health risks of bottled water].

V. Public health initiatives promoting tap water safety and advocating for
refillable water bottles can reduce reliance on bottled water [Source:
Source on public health initiatives for tap water and refillable bottles].

VI. Governments are exploring policies such as bottle deposit schemes to


incentivize recycling and reduce plastic waste associated with bottled
water [Source: Source on government policies for bottled water
recycling].

Page 20
Future Outlook:-

1. Innovation in filtration technologies and water dispensers can potentially


reduce reliance on bottled water [Source: Source on advancements in
water filtration technology].

2. Advancements in refillable bottle technology with improved hygiene and


convenience can encourage a shift away from disposable bottles [Source:
Source on advancements in refillable bottle technology].

3. Collaboration between bottled water companies, policymakers, and


environmental organizations is crucial for developing sustainable
solutions for the bottled water industry [Source: Source on industry
collaboration for sustainable bottled water solutions].

4. Consumer education about Packaged Drinking Water.

Page 21
Manufacturing Process Of Packaged Drinking Water

I. Pre-treatment:-
A. Source Water Acquisition:- Water comes from various sources like
springs, wells, or municipal supplies.
B. Filtration:- This removes large particles like sand, debris, and organic
matter using multimedia filters or cartridge filters.
C. Coagulation and Flocculation (Optional):- For water with high turbidity,
chemicals are added to clump suspended particles for easier removal
through settling or filtration.
D. Chlorination (Optional):- Chlorine disinfection may be used as a
preliminary step to kill bacteria and other microbes.

II. Treatment:-
A. Sand Filtration:- Sand filters remove finer suspended particles and
impurities.
B. Activated Carbon Filtration:- This stage removes chlorine taste, odour,
and organic compounds that can affect taste or colour.
C. Water Softening (Optional):- This step might be necessary for water with
high mineral content (hard water) to improve taste and prevent scaling in
pipes.
D. Deionization (Optional):- This further removes remaining charged ions
like minerals through ion exchange resins. (Used for demineralized water)

Page 22
III. Advanced Purification:-

A. Reverse Osmosis (RO):- The RO system is the heart of purification. It


uses a semi-permeable membrane to remove a wide range of
contaminants, including dissolved minerals, bacteria, and viruses.

IV. Final Treatment:-

A. Carbon Filtration:- Activated carbon removes chlorine taste and odour,


and may also absorb organic compounds.

B. Ozonation (Optional):- Ozone is a powerful disinfectant that can be used


as an alternative to chlorine, leaving no residual taste or odour.

C. Ultraviolet (UV) Disinfection:- UV light kills microorganisms that might


have passed through the RO membrane.

D. pH Adjustment:- pH levels are adjusted to ensure the water is within the


desired range for taste and safety.

Page 23
V. Bottling & Packaging:-

A. Bottle Blowing:- PET preforms are heated and blown into moulds to create
the final shaped bottles.

B. Rinsing & Filling:- Bottles are thoroughly rinsed with sterilized water and
then filled with purified water.

C. Capping & Labelling:- Bottles are sealed with tamper-proof caps and
labelled with product information and expiration date.

D. Quality Control:- Throughout the process, samples are regularly tested to


ensure water quality meets regulatory standards.

VI. Warehousing:-
A. Finished bottles are inspected, packed into cartons or shrink-wrapped, and
readied for distribution to retailers and consumers.

Page 24
Marketing Strategies Of Packaged Drinking Water
Industry

Brand Positioning:- Clearly define your brand’s unique value proposition and
positioning in the market. Highlight factors such as purity, taste, health benefits,
or environmental sustainability.

Target Audience Segmentation:- Identify specific consumer segments that are


likely to be interested in your packaged water, such as health-conscious
individuals, athletes, travellers, or families with children.

Digital Marketing:- Utilize digital channels such as social media, search


engine optimization (SEO), content marketing, and email marketing to reach
and engage with your target audience effectively.

Social Media Engagement:- Maintain an active presence on popular social


media platforms like Instagram, Facebook, and Twitter. Share visually
appealing content, user-generated testimonials, hydration tips, and behind-the-
scenes stories to foster engagement and build a community around your brand.

Influencer Partnerships:- Collaborate with influencers, bloggers, and health


enthusiasts who align with your brand values to promote your packaged water
to their followers and expand your reach.

Page 25
Content Marketing:- Create valuable and educational content related to
hydration, health, fitness, and lifestyle topics. This could include blog posts,
videos, infographics, and podcasts that position your brand as an authority in the
industry.

Packaging Design:- Invest in eye-catching and functional packaging design


that stands out on the shelves and communicates your brand’s quality and
values. Consider eco-friendly packaging options to appeal to environmentally
conscious consumers.

Sampling Campaigns:- Organize sampling campaigns at high-traffic locations,


events, and fitness centres to allow consumers to taste your packaged water and
experience its benefits first-hand.

Partnerships and Sponsorships:- Form strategic partnerships with fitness


centres, sports events, health clubs, and wellness organizations to sponsor
events, provide hydration stations, and increase brand visibility among your
target audience.

Local Community Engagement:- Get involved in local community initiatives,


health fairs, and charity events to demonstrate your brand’s commitment to
health and wellness and connect with consumers on a personal level.

Customer Reviews and Testimonials:- Encourage satisfied customers to leave


positive reviews and testimonials online, as social proof can significantly
influence purchasing decisions.

Page 26
Retail Promotions:- Offer promotions, discounts, and special offers in
collaboration with retail partners to drive sales and incentivize trial purchases.

Data Analysis and Optimization:- Use analytics tools to track the performance
of your marketing campaigns, measure key metrics, and make data-driven
decisions to optimize strategies for better results over time.

Consistent Brand Messaging:- Ensure that your brand messaging is consistent


across all marketing channels and touch points to build brand recognition and
trust among consumers.

Continuous Innovation:- Stay abreast of market trends, consumer preferences,


and emerging technologies to innovate your product offerings, marketing
strategies, and customer experiences continuously.

I. Brand Positioning and Differentiation:-

A. Examine how packaged drinking water brands position themselves in the


market and differentiate their products from competitors.
B. Assess branding elements such as brand name, logo, packaging design, and
messaging to understand their impact on consumer perception and brand
identity.

Page 27
II. Product Development and Innovation:-

A. Investigate product innovation and development strategies within the


packaged drinking water industry, including new flavours, functional
additives, and packaging innovations.
B. Analyse consumer preferences and market demand for innovative product
features and formulations.

III. Promotional Strategies:-

A. Explore marketing and promotional tactics used to create awareness and


drive sales of packaged drinking water products.
B. Assess the effectiveness of advertising campaigns, including traditional
media (TV, radio, print) and digital channels (social media, online ads,
influencer marketing).
C. Investigate promotional activities such as sponsorships, events, sampling
programs, and consumer engagement initiatives.

Page 28
Sales & Distribution Of Packaged Drinking Water
Industry

I. Sales Strategies:-

1. Understanding Customer Needs:- Conduct market research to


understand consumer preferences, demographics, and purchasing
behaviours related to packaged water.

2. Product Differentiation:- Highlight unique features and benefits of


your packaged water, such as superior taste, innovative packaging,
or added health benefits.

3. Establishing Relationships:- Build strong relationships with


retailers, distributors, and wholesalers to ensure consistent
availability and visibility of your product.

4. Sales Promotions:- Offer promotions such as discounts, coupons,


or bundled deals to incentivize purchase and increase sales volume.

5. Merchandising:- Optimize product placement and visibility in


retail stores through attractive displays, signage, and point-of-sale
materials.

Page 29
6. Sampling Programs:- Conduct sampling programs at events,
festivals, and high-traffic areas to allow consumers to experience the
quality and taste of your packaged water.
7. Educational Marketing:- Provide educational materials or
demonstrations highlighting the health benefits of staying hydrated
and the importance of choosing packaged water over sugary
beverages.

8. Targeted Marketing:- Tailor marketing efforts to specific


consumer segments, such as health-conscious individuals, athletes,
travellers, or parents concerned about their children’s hydration.

9. Online Sales Channels:- Utilize e-commerce platforms and digital


marketing strategies to reach consumers who prefer online shopping
and capitalize on the growing trend of online grocery shopping.

10. Branding and Packaging:- Invest in branding and packaging


design that communicates quality, purity, and trustworthiness to
attract and retain customers.

11. Customer Engagement:- Engage with customers through social


media, email marketing, and loyalty programs to build brand loyalty
and encourage repeat purchases.

Page 30
12. Trade Shows and Events:- Participate in industry trade shows,
health expos, and community events to showcase your product and
network with potential buyers and partners.

13. Feedback and Adaptation:- Gather feedback from customers and


sales channels to identify areas for improvement and adapt sales
strategies accordingly.

14. Continuous Training:- Provide ongoing training and support to


sales teams, distributors, and retail staff to ensure they are
knowledgeable and enthusiastic advocates for your product.

15. Monitoring and Analysis:- Monitor sales performance, market


trends, and competitive activity to make data-driven decisions and
continuously refine your sales strategies for optimal results.

A. Analyse the competitive landscape of the packaged drinking water


industry, including major players, emerging brands, and market share
dynamics.

B. Analyse pricing strategies, promotions, discounts, and incentives used to


attract consumers and increase sales volume.

C. Assess the effectiveness of sales tactics such as product bundling, cross-


promotions, and loyalty programs in driving consumer engagement and
repeat purchases.

Page 31
D. Investigate the relationships between packaged drinking water
manufacturers and retailers, including wholesalers, distributors, and
individual stores.

E. Assess the importance of factors such as shelf space, product placement,


and promotional support in influencing retailer decisions and driving
product sales.

F. Establish key performance indicators (KPIs) to measure sales performance,


including sales revenue, volume growth, market share, and customer
acquisition metrics.

G. Segment the market based on demographic factors, lifestyle preferences,


and geographic location to tailor sales strategies to specific consumer
segments.

Page 32
II. Distribution Strategies:-

1. Retail Distribution:- Establish partnerships with grocery stores,


supermarkets, convenience stores, and gas stations to ensure
broad retail distribution.

2. Wholesale Distribution:- Work with wholesalers and


distributors to reach a wider network of retailers efficiently.

3. Online Distribution:- Utilize e-commerce platforms to sell


directly to consumers and reach customers who prefer online
shopping.

4. Vending Machines:- Install vending machines in high-traffic


areas such as airports, train stations, gyms, and office buildings
for convenient access.

5. Bulk Sales:- Target businesses, institutions, and event organizers


for bulk sales, such as supplying water for offices, schools,
hospitals, and conferences.

6. Subscription Services:- Offer subscription services for regular


delivery of packaged water to homes, offices, and other locations.

7. Specialized Channels:- Explore opportunities to distribute


through specialized channels such as health food stores, outdoor
recreation stores, and fitness centres.

Page 33
8. Direct Sales:- Conduct direct sales efforts through door-to-door
sales teams or direct marketing campaigns in targeted areas.

9. Partnerships:- Form partnerships with complementary


businesses, such as fitness centres or sports events, to cross-
promote and expand distribution channels.

10. Regional Focus:- Tailor distribution strategies to specific


regions based on demographic factors, consumer preferences,
and local regulations.

11. Export Markets:- Explore opportunities to expand into


international markets through partnerships with distributors or
direct export arrangements.

12. Branded Coolers:- Provide branded coolers to retailers and


businesses for displaying and selling packaged water, enhancing
brand visibility and driving sales.

13. Sampling Programs:- Implement sampling programs at events,


trade shows, and high-traffic areas to introduce consumers to the
product and drive sales.

14. Supply Chain Efficiency:- Ensure efficient supply chain


management to minimize stock outs, reduce lead times, and
optimize distribution logistics.

Page 34
15. Feedback Mechanisms:- Establish feedback mechanisms to
gather insights from distributors, retailers, and consumers to
continually refine and improve the distribution strategy.

A. Distribution logistics involve planning efficient transportation routes and


storage facilities to ensure timely delivery to retailers, distributors, and
consumers.

B. Examine distribution strategies and channel partnerships utilized by


packaged drinking water brands to reach target consumers.

C. Evaluate the role of retail channels (supermarkets, convenience stores),


online platforms, vending machines, and institutional sales (restaurants,
hotels) in product distribution.

Page 35
Servings & Usage Context of Packaged Drinking Water

I. 250ml & 350ml Servings :-


Assess the usage context of packaged drinking water for special events and
occasions, such as parties, weddings, conferences, festivals, and outdoor
gatherings, schools, offices, and institutions as a convenient and portable
option for individual hydration needs.

II. 500ml, 1 litre & 2 litres Servings :-

• Everyday Consumption:- These medium-sized bottles are suitable


for everyday hydration at home, work, or school & College.
Available at Retail Shops, Supermarket.
• Outdoor Activities:- Often taken along for outdoor activities such
as picnics, hiking, camping, and sports events.
• Meal Accompaniment:- Paired with meals at restaurants, cafes, or
fast-food outlets for convenient hydration options.

Page 36
III. 5 litres Servings :-

A. Picnics &Tourist Places:-

1. Convenience:- Packaged drinking water offers convenience for


picnickers who want to stay hydrated while enjoying outdoor
activities.

2. Safety:- Packaged drinking water ensures safety and purity,


especially in outdoor settings where access to clean water sources
may be limited or unavailable.

3. Family-Friendly:- Family picnics often involve children and


elderly individuals, making packaged drinking water a convenient
and safe option for hydration for all age groups.

4. Travel Essentials:- Packaged drinking water is a travel essential for


tourists exploring new destinations, providing a reliable source of
hydration during sightseeing, excursions, and outdoor adventures.

5. Hydration on the Go:- Tourists can easily carry bottled water in


their bags or backpacks while exploring tourist attractions,
landmarks, and natural wonders.

6. Health and Safety:- In regions with questionable water quality or


sanitation standards, tourists rely on packaged drinking water to
avoid waterborne illnesses and stay healthy during their travels.

Page 37
IV. 10 litres, 20 litres & 25 litres Servings :-

• Household Use:- Larger-sized containers are typically used for household


consumption, providing a bulk supply of water for cooking, drinking, and
other domestic purposes.

• Office and Workplace:- Commonly found in office settings, workplaces,


Shops, Salons and commercial establishments for employee hydration and
refreshment.

• Bulk Consumption:- These large-sized containers are commonly used for


bulk consumption in commercial settings such as hotels, restaurants,
catering services, and events.

Page 38
Advantages Of Packaged Drinking Water

I. Safety and Purity:- Packaged drinking water undergoes rigorous


filtration, purification, and quality control processes to ensure it meets
stringent safety and purity standards. This eliminates the risk of waterborne
diseases and contaminants, providing consumers with peace of mind
regarding the safety of their drinking water.

II. Convenience:- Packaged drinking water is available in various sizes and


formats, including individual bottles, multipacks, and larger containers,
making it convenient for consumers to purchase and consume on the go.
Its portability makes it ideal for travel, outdoor activities, and emergency
preparedness.

III. Hydration:- Drinking an adequate amount of water is essential for


maintaining hydration and overall health. Packaged drinking water
provides a convenient and accessible source of hydration, helping
consumers stay hydrated throughout the day, especially in situations where
access to clean tap water may be limited or unavailable.

IV. Quality Assurance:- Packaged drinking water manufacturers adhere to


strict quality control measures and regulatory standards to ensure the
freshness, purity, and consistency of their products. This includes regular
testing for contaminants, pH levels, and microbiological safety, ensuring
high-quality water for consumers.

Page 39
V. Variety and Choice:- The packaged drinking water market offers a wide
variety of options to suit different consumer preferences, including still
water, sparkling water, flavoured water, and enhanced water with added
vitamins or minerals. This allows consumers to choose products that align
with their taste preferences and nutritional needs.

VI. Long Shelf Life:- Packaged drinking water typically has a long shelf life,
allowing consumers to stock up on water supplies for emergencies or for
use in situations where access to clean water may be limited, such as during
natural disasters or travel to remote areas.

VII. Consistency:- Packaged water maintains a consistent taste and quality,


ensuring a refreshing experience with every sip.

VIII. Emergency Preparedness:- Stocking up on packaged water is


recommended for emergency preparedness kits, providing a reliable source
of hydration during natural disasters or other emergencies.

IX. Portability:- Packaged water is lightweight and comes in various sizes,


making it easy to carry and store in bags, backpacks, and vehicles.

Page 40
X. Health Standards:- Packaged water is subject to stringent regulatory
standards and quality control measures, ensuring it meets health and safety
requirements.

XI. No Contaminant Risk:- Unlike water stored in open containers or tanks,


packaged water is protected from external contaminants, maintaining its
purity until consumption.

XII. Conscious Consumption:- It encourages individuals to consume adequate


amounts of water throughout the day, promoting better hydration habits.

XIII. Accessibility:- Packaged water is readily available in most grocery stores,


convenience stores, vending machines, and online platforms, ensuring easy
accessibility for consumers.

XIV. Packaging Options:- It comes in a range of packaging options, including


bottles, pouches, and cans, suitable for different occasions and preferences.

XV. Cultural Acceptance:- Packaged water is culturally accepted worldwide


as a safe and convenient beverage option.

XVI. Convenience for Commuters:- Commuters carry packaged water for


hydration during daily travels.

Page 41
XVII. Hydration for Events:- Packaged water is a staple at events, conferences,
and festivals for attendee hydration.

XVIII. Recycling Potential:- Many plastic water bottles are recyclable, which can
help to reduce waste if disposed of properly.

XIX. Economic Benefits:- The bottled water industry creates jobs and
contributes to the economy in various regions.

XX. Environmental Considerations:- While the use of single-use plastic


bottles has raised environmental concerns, many packaged drinking water
companies are adopting eco-friendly packaging solutions, such as
recyclable PET bottles, plant-based plastics, or biodegradable materials.
Additionally, recycling initiatives encourage responsible disposal and
minimize environmental impact.

Page 42
Future Trend Analysis of Packaged Drinking Water

I. Rising Health & Wellness Concerns:- Consumers are increasingly


focusing on health and wellness, leading to a greater demand for clean and
convenient hydration options. Packaged drinking water is perceived as a
healthier alternative to sugary beverages.

II. Urbanization and Busy Lifestyles:- As urbanization increases, people are


on-the-go and require portable hydration solutions. Packaged drinking
water caters to this need with convenient single-serve options.

III. Growing Disposable Income:- Rising disposable income in developing


countries allows consumers to spend more on packaged water, especially
premium or functional varieties.

IV. Focus on Sustainability:- Consumers are becoming more environmentally


conscious. Sustainability efforts in the industry, such as using recycled
plastic or refillable packaging, will likely gain traction.

V. Functional Water Segment Growth:- Functional water infused with


electrolytes, vitamins, or minerals is expected to see significant growth as
consumers seek additional health benefits from their beverages. The
packaged drinking water market is diversifying beyond traditional still and
sparkling water products to include a broader range of functional
beverages. Future trends may include the development of water-based
drinks with added flavours, botanical extracts, probiotics, or CBD-infused
formulations, catering to specific consumer preferences for taste, health
benefits, and lifestyle needs.

Page 43
VI. Personalization:- As consumers seek more personalized experiences,
packaged drinking water companies may offer customizable products
tailored to individual preferences and dietary requirements. Future trends
may include personalized hydration solutions based on factors such as age,
gender, activity level, and health goals, with options for flavour
customization, nutrient fortification, and packaging design.

VII. Smart Packaging:- With advancements in technology, packaged drinking


water companies may incorporate smart packaging solutions to enhance
consumer engagement, product traceability, and sustainability. Future
trends may include QR code-enabled packaging for product information
and traceability, interactive packaging designs for augmented reality
experiences, or IoT-enabled sensors for monitoring freshness and quality
in real-time.

VIII. Health and Wellness Focus:- With increasing awareness of the


importance of hydration for health and well-being, there will likely be a
continued demand for packaged drinking water marketed as a healthy
beverage choice. Brands may innovate by adding functional ingredients
such as vitamins, antioxidants, or adaptogens to enhance health benefits.

IX. Sustainability Initiatives:- As environmental concerns grow, consumers


are becoming more conscious of the environmental impact of single-use
plastics. This could lead to a shift towards eco-friendly packaging options
such as biodegradable bottles, plant-based plastics, or refillable containers.
Companies that prioritize sustainability and implement eco-friendly
practices may gain a competitive advantage.

Page 44
X. Premiumization:- There may be a trend towards premium and specialized
packaged water products targeting niche consumer segments. This could
include premium mineral water sourced from exotic locations, customized
hydration solutions tailored to individual preferences or dietary needs, and
luxury packaging designs aimed at enhancing perceived value.

XI. Functional and Enhanced Waters:- Consumers may show increased


interest in packaged water with added functional ingredients such as
electrolytes, probiotics, or CBD (cannabidiol). These functional and
enhanced waters cater to specific health and lifestyle needs, such as
hydration during sports activities or relaxation and stress relief.

XII. Digitalization of Marketing and Distribution:- The use of digital


marketing channels and e-commerce platforms is expected to continue
growing, allowing packaged water brands to reach consumers directly and
personalize their marketing efforts. Online sales channels may become
increasingly important as consumers embrace the convenience of online
shopping for groceries and beverages.

XIII. Global Expansion and Market Penetration:- Packaged drinking water


companies may explore opportunities for global expansion, tapping into
emerging markets with growing populations, rising disposable incomes,
and increasing urbanization. Expansion into new geographical regions may
require adaptation to local tastes, preferences, and regulatory requirements.

Page 45
XIV. Adaptive Packaging Designs:- Packaging designs that adapt to various
environments and activities, such as insulated bottles for outdoor use or
spill-proof caps for sports activities.

XV. Packaging Size Variety:- Offerings in a range of packaging sizes to cater


to different consumption needs, from single-serve bottles to bulk
containers for families or events.

XVI. Transparency in Marketing:- Emphasis on transparent and honest


marketing practices, including clear labelling of ingredients, sourcing
information, and sustainability initiatives, to build trust with consumers.

XVII. Hydration Subscription Services:- Subscription-based models offering


regular delivery of packaged water to homes, offices, or gyms, customized
based on individual hydration needs.

XVIII. Carbon Footprint Reduction:- Efforts to reduce the carbon footprint of


packaged water production and distribution, including carbon-neutral
operations and renewable energy usage.

XIX. Immune-Boosting Formulations:- Packaged water fortified with


immune-boosting ingredients such as vitamin C, zinc, or elderberry extract
may gain popularity, especially during times of increased health
consciousness.

XX. Subscription Services: Delivery services providing regular refills of large


water containers could gain popularity.

XXI. Focus on Local Sourcing: Consumers might favour locally sourced water
to reduce the environmental impact of transportation.

Page 46
XXII. Challenges and Considerations:-
• Plastic Waste Management: The environmental impact of plastic
waste from bottles remains a major concern. Continued innovation
in bioplastics or improved recycling infrastructure is crucial.
• Water Scarcity: Pressure on freshwater resources could lead to
regulations or restrictions on bottled water production in some
regions.
• Consumer Affordability: Rising packaging and production costs
might translate to higher prices for consumers, impacting
accessibility.

XXIII. E-commerce and Direct-to-Consumer Channels:- The rise of e-


commerce and direct-to-consumer (DTC) channels is reshaping the
distribution landscape for packaged drinking water. Future trends may
include increased online sales, subscription-based models, and DTC
marketing strategies aimed at bypassing traditional retail channels and
engaging directly with consumers through digital platforms.

Overall, the future of packaged drinking water seems promising, with a focus on
innovation, sustainability, and meeting evolving consumer needs.

Page 47
Conclusion

In conclusion, the packaged drinking water industry plays a vital role in providing
consumers with safe, convenient, and reliable hydration solutions. Throughout
this study, we have explored various aspects of the industry, including
manufacturing processes, marketing strategies, sales dynamics, consumer
preferences, and future trends.

Overall, the industry continues to experience steady growth driven by factors


such as increasing health awareness, urbanization, lifestyle changes, and
environmental concerns. Packaged drinking water offers numerous advantages,
including safety, convenience, portability, and variety, making it a preferred
choice for consumers in various settings, from everyday hydration to outdoor
activities, travel, and emergency preparedness.

However, the industry also faces challenges, such as environmental sustainability


concerns related to single-use plastics, regulatory compliance, and competition
from alternative beverages. To address these challenges and capitalize on
opportunities for growth, stakeholders in the packaged drinking water industry
must innovate, adapt, and prioritize sustainability initiatives, product
differentiation, and consumer engagement strategies.

The packaged drinking water industry remains a dynamic and resilient sector
poised for continued growth and innovation, driven by the ongoing demand for
safe, convenient, and sustainable hydration solutions in an increasingly health-
conscious and environmentally aware global market.

Page 48
In conclusion, the future of packaged drinking water holds exciting possibilities
driven by evolving consumer preferences, technological advancements, and
sustainability concerns. As demand for clean, convenient, and health-conscious
hydration options continues to rise, brands will innovate with eco-friendly
packaging, functional ingredients, and personalized solutions. Collaboration with
wellness experts, adoption of smart technologies, and a commitment to
transparency will shape the industry’s trajectory. By embracing these trends and
remaining responsive to consumer needs, the packaged drinking water sector is
poised for continued growth and positive impact on health and sustainability.
Invest in branding and packaging design that communicates quality, purity, and
trustworthiness to attract and retain customers. Utilize e-commerce platforms and
digital marketing strategies to reach consumers who prefer online shopping and
capitalize on the growing trend of online grocery shopping.

Page 49
References

1) https://www.mordorintelligence.com/industry-reports/bottled-water-
market

2) https://www.grandviewresearch.com/industry-analysis/packaged-
drinking-water-market

3) https://www.statista.com/topics/2095/bottled-water-market/

4) https://www.researchandmarkets.com/reports/4768261/packaged-
drinking-water-market-growth-trends

5) https://www.prnewswire.com/news-releases/global-bottled-water-market-
report-2021-2026-market-to-reach-313-92-billion-by-2026-
301326581.html

6) https://www.transparencymarketresearch.com/bottled-water-market.html

Page 50

You might also like