The Water Industry in Hong Kong - Watsons Water

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Watsons water

(A)Product attribute, Customer needs and Buying Process

Buying process can be differentiated into 4 stages:
–Need identification
-water is important for human body since about 70% of human body is made by water. - eg. Someone needs to drink water after doing exercise in order to recover his/her body. –and evaluation
-Customers usually compare one water product with another brand’s water product before make a final decision. -they typically think about the price, quality, and taste of the product. –Transaction

- Some business companies buy it for their office, and they buy it in large quantity; whereas some individuals buy it for themselves -in B to B, as business companies buy it in large size of quantity, specific amount can be delivered by the suppliers. –Usage and maintenance

-the bottle of water can be reused, replaced, recycled, or returned to the suppliers. –Disposal

During the buying process, customers always have several needs, either tangible or intangible.

Customers generally concern about the needs on Monetary, Time (convenient), Physiological, and Psychological and Confidence dimensions. Monetary and Time is the benefit/cost and opportunity time saving/lost appeared by buying/having the service, Physiological and Psychological are the effects on emotion and health during the transaction.

(B)Major market segments and differences in product/service attribute between 2 to 3 major competitors [e.g. Bonaque, Vita]

i.Major market segments
In bottled water industry, water manufacturers are generally having three target markets: office, retail and household.

Hong Kong is a business society. Many people work in commercial building nearly whole day, they have no time to boil water in the office. Water manufactures.

Besides office, the company also focuses retail and domestic market supplies. It provides a wide range size of water, which is portable and convenient for people with different needs.

ii.Differences in product attribute
Watsons Water emphasis its bottled water produce under multi-level filtration and 105°C high pressure distillation in order to remove heavy metals, germs and bacterial from water, ensuring every drop of water is purity. In oppose, its competitor, Vita has no such guarantee. Therefore, Watsons Water can bring a strong confident to its customers.

The company keeps innovation in its product. The new product is added with different minerals called "Watsons Water with minerals" was launched in 2001. Although there is another competitor Bonaqua which is mainly focuses and produces minerals water in the drinking water market. With Watsons Water’s brand name, the company still can occupy a certain market position without loss its reputation.  

Besides water, the company wants to attract the fashionable young people attention and increase the psychological value of buyers. It puts many efforts on choosing the bottle color and designing the streamlined ergonomic shape of bottle and bottle cap. To compare with other competitors such as Bonaqua and Vita, they seem put relative lower concern in the bottle design. (C) Drinking Water Industry Outlook

Any analysis of the treats and opportunities facing a firm must begin with an understanding of general environment within a firm operates. This general environment consists of six interrelated elements: Demographic Trends, Economic Climate, Legal and Political Conditions, Cultural Trends, Technological Change and Specific International Events.

i.The Demographic Trend
We would like analyze the population size and geographic distribution

The Population Size of Hong Kong
The Hong Kong population in 2010 is 7,067,800 up from 7,003,700 in 2009. The population growth rate is 0.5%

Geographic Distribution
Hong Kong Geographic Distribution is divided into three major areas, i.e. Hong Kong Island, Kowloon and New territories and Islands.

Kowloon has the greatest proportion density in Hong...
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