Presented By: Comm Odity Chain

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Presented by

Vũ Đức Hiền BABAIU16071

COMM
Đỗ Thị Sa Huỳnh

Hồ Nguyên Minh Khánh


BABAIU16161

BABAWE16185

COMMODITY CHAIN
of AQUAFINA ODITY
Trần Thị Thùy Linh

Nguyễn Hữu Thiên Như

Trần Thị Thanh Thanh


BABAWE16155

BAFNIU16065

BAFNIU16105

CHAIN
Nguyễn Thị Phương Thảo

Nguyễn Văn Tùng


BABAWE15144

BABAIU16048
General Information
A brand of bottled water produced by PepsiCo, including
flavors and unflavored water

First distribution in Wichita, Kansas (1994) and then become


worldwide

The No.1 brand of bottled water in 2009 (13.4 percent of


bottled water sales in the U.S)

Main competitors: Dasani, Evian, Inasad, Aqua, Nestle Pure


Life, Poland Spring
Commodity Chain
1 Collecting and Purifying Process

2 Bottles & Caps

3 Packaging

4 Distribution Channels
Public water sources

FDA & TDS standards


Collecting
40 sites bottled water production And
Recyclable products Purifying
Hydro-7 purification Process
HydRO-7
HydRO-7
Process
1. Prefiltration
2. Polishing Filter
3. High-Intensity Light
4. Reverse Osmosis
5. Charcoal Filter
6. Polishing Filter
7. Ozonation
Bottles // PET
// Produced by Amcor North-America

Bottles // Recyclable

2
// Produced by Closure Systems
International Incorporation Caps
// Recyclable
Caps
Packaging
Individual sizes Multi-packs
• 12 US fl oz (0.35 l) bottles • 24 packs
• 16.9 US fl oz (0.5l) bottles • 32 packs
• 20 US fl oz (0.59l) bottles
• 24 US fl oz (0.71l) bottles
• 33.8 US fl oz (1.0l) bottles
• 42.2 US fl oz (1.25l) bottles
• 50.7 US fl oz (1.5l) bottles
Packaging
Criticisms on bottled water industry

• Enhancing in plastic products


• Creating additional petrochemicals
Packaging
Aquafina’s strategy

• 40% less plastic by cutting down label size &


weight
• Eliminating cardboard base pads
• Decreasing in transportation pollution and
wastage
Distribution
Distribution
Channels
Intermediaries
• Distributors
• Wholesalers
• Retailers

Countless all over the world

Easy and convenient purchase


Distribution
Distribution
Channels
Products are brought to market through:
Direct-store-delivery (DSD)
• Retail stores
• Maximum visibility and appeal
Distributor networks
• Third-party distributors
• Greater distribution reach
Number of consumers of Aquafina beverages in the
United States from spring 2008 to spring 2017
Consumption
Sales

Sales of the leading bottled still water brands in the United States in 2017
MARKET SHARE BOTTLED WATER MARKET SHARE IN
VIETNAM (2014)

The largest suppliers of


bottled water in Vietnam are
Pepsi’s Aquafina, with a 40
Other…
percent market share, and
Aqua…
Nestle’s La Vie brand, with a
30 percent market share.
Around 70-80 percent of the Lavie
30%
bottled water market belongs
to foreign companies.
Lessons Learned

TAP WATER
in Vietnam ?
Lessons Learned
Water Bottle Water

Water is not boiled or Water is used for direct


processed. Households in drinking with qualified
Vietnam often take requirements issued by
from wells then boil to use. Ministry of Health.
Lessons Learned
The market is dominated by a few notable foreign companies and a host of local manufacturers, but
entry barriers are low due to the positive investment climate in Vietnam. Once they gain a toehold in
the market, participants will have to strategize to deal with the presence of certain environmental
support groups or individuals that oppose the sales and consumption of bottled water as the bottles
are deemed environmentally unfriendly.
Lessons Learned
However, the biggest challenge for market participants is the increasing cost of production - from
raw materials of the bottles to logistics. Market participants have to be price conscious as the
majority of Vietnamese are not considered affluent. Cost optimization in production and logistics is
essential to remain competitive. Additionally, bottle recycling is not common in Vietnam as the
country does not have adequate facilities.

The factors that must be considered when entering the bottled water market in Vietnam are
technology, transportation, and labor costs. Smaller manufacturers that offer relatively lower-priced
products are a constant threat to even the largest bottled water company in Vietnam.
Lessons Learned
“WATER SOURCE” FOR BOTTLED WATER

CUT DOWN ON PLASTIC USE


References
http://aquafina.com/en-US/
http://www.pepsicobeveragefacts.com/
http://all-about-water-filters.com/best-purified-bottled-water-brands/
https://cu.pepsico.com/aquafina?nutrition
https://prezi.com/mosrleqir55u/aquafina/
https://www.aquafina.com/pdf/bottledWaterInformation_en.pdf
https://marketrealist.com/2014/12/understanding-pepsicos-business-model
https://www.statista.com/statistics/228134/aquafina-consumption-usa/
https://dailyhealthpost.com/truth-about-bottled-water/
https://www.isitbadforyou.com/questions/is-aquafina-water-bad-for-you
http://www.dietoflife.com/truth-behind-bottled-water/
https://www.ukessays.com/essays/environmental-sciences/analysing-aquafina-bottled-water-
environmental-sciences-essay.php
https://en.sapuwa.vn/index.php/tin-tuc/specialized-news/vietnamese-bottled-water-market.html
http://www.vietnam-briefing.com/news/foreign-companies-provide-strong-competition-vietnams-
nonalcoholic-drinks-market.html/
for your listening

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