The following is a report prepared for Spritzer Water, a bottled water company based in Australia. They are interested in expanding into the international market. They have reached their maximum sales in Australia and are a well-known brand at the top of the market.
The specific country they have chosen is China as they see the Chinese bottled water market as the fastest growing in the world.
The following report will advise them on a specific target market in the selected country and also advise them on an entry strategy.
Spritzer Water wants to enter the Chinese bottled water market. This market is one of the largest growing markets for bottled water in the world.
Despite a growing economy, the quality of tap water in China still falls far behind western standards. Although the government recently reviewed some of the regulation relating to how water can be treated and how it can be described depending on that treatment, the quality of tap water – especially in the northern region – has so far failed to improve greatly. In fact, some believe the situation will only get worse due to the pollution resulting from industrialisation. Poor quality tap water is one of the factors that has helped drive growth in the Chinese bottled water market over recent years.
Other elements helping to boost the bottled water market include increasing consumer affluence and a growing middle class, the increase in tourism largely thanks to the 2008 Beijing Olympics and the low quality of tap water. As consumers see their disposable income rise, the public debate with regards to tap water has turned bottled water into an essential purchase item for many Chinese consumers.
The Chinese consumer has started to become more sophisticated when it comes to...