Bottled Water

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QUESTIONS 1
Identify and briefly describe four trends in the macro environment that will have an influence on the demand for bottled water. {Maximum length: 300 words]

Sources:
Glas Water News [Internet]
CONTROLLED CONTENTS Bottled water companies are under renewed pressure to assure quality of product Global Water Futures
Applied Strategic Marketing – Second Edition[Du Plessis, Jooste & Strydom]

Introduction
Next to alcoholic beverages, bottled water is the most popular beverage in the world. According to the International Council of Bottled Water Associations, in 2003 153,083,000,000 litres of bottled water were produced worldwide, with an estimated value of $45,772,000,000.00. Every year production, value of production and consumption worldwide goes up by fantastic leaps and bounds with no end in sight. Tap water quality is declining at a rapid pace. As Governments struggle to provide even the most bare minimum quality standards of water to their citizens, there is an ever growing demand for alternative drinking water sources.

With this in mind the bottled water market is faced with various challenges in the macro environment that will have an impact on the demand for bottled water [i.e. Technological, Government/Legal, Economic, Social/Cultural, Demographic and International].

Demand for Bottled Water
In the bottled water market we can at four trends that will influence the demand for bottled water in the macro environment are:

Government/Legal
With reference to the growing global challenges of dealing with the devastating effects of increasing water scarcity and declining water quality politicians has their work lined up for them. Across the planet, in developing and developed regions alike, poor governance and mismanagement of natural resources coupled with rising population growth, increasing urbanisation and economic development have led to a growing imbalance between water supply and water demand. Despite stringent laws that govern the bottled-water industry, which is regulated by the Department of Health, there have been recent reports that companies are bottling tap water and marketing it as natural or spring water. From July 28, 2007, all enterprises producing bottled water for sale to the public will be required to state the type of bottled water on the label of the bottle. Globally the demand for bottled water has increase as governments/politicians are unable to provide its citizens with the essential basic drinking water. Also, with the strict laws in place the target market feel safe buying bottled water (health precaution).

Economic
The economic prospects on the demand for bottled water are at its high and growing daily. National bottled-water industry body the South African National Bottled Water Association (Sanbwa) reports that the South African bottled-water industry experienced a 20% growth during 2007. Research by independent specialist food and beverage research company BMI shows that the South African bottled-water market grew by an estimated 33% during 2005 and an additional 27,6% in 2006, follow- ing a consistent annual growth trend in excess of 20% since 2001. These figures reflect total South African consumption through retail, wholesale, on consumption and outlets. These figures also include imports.

Socio-cultural & Demograhic
Adequate, high-quality water supplies provide a basis for the growth and development of human social, economic, cultural and political systems. Conversely, economic stagnation and political instability will persist or worsen in those regions where the quality and reliability of water suppliers remain uncertain.

Adequate supplies of fresh water are a cornerstone for human activities at all scales, from daily subsistence needs to higher levels of economic production. Lack of access to safe, clean water for drinking, sanitation, agriculture, or industry is perpetuating cycles of poverty and limiting viable...
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