CASE 7:

Water Marketing

PESTLE TRENDS WATER REFILL STATION

The government of the land has an important role to play within the
operation of manufacturing bottled water in terms of regulations.
Potential fines are set by the government for the manufacturers in case
they fail to meet the standard of laws. Some of the political factors
Political which cause the results of the Bottled water manufacturing Companies
to differ materially from the expected objectives in their annual
statement (Grundy, 2002). The modifications in the rules and

m
er as
regulations by the Government in various functions affects the way

co
business would operate. For example, change in taxation requirements
eH w
like new tax laws, tax rates, or revised interpretations of the tax laws,

o.
rs e
modification of accounting standards, and new or modified
ou urc

environmental laws in global and local regulations (Grundy, 2006).

Economic are influence by domestic economic policies and world
o

economic trends. The interest rates can affect companies because if the
aC s

interest rates were high then water companies would not want to
vi re

Economic borrow as much money for expansion. Also if consumers had loans
y

they would again have less disposable income to buy luxury items. If
ed d

the minimum wage were brought down, this would mean more money
ar stu

for bottled water companies but would also result in low sales from the
consumers. The government can also raise taxes, which would bring a
is

standstill to the sales of water.

People are switching their lifestyle to enable them to remain
Th

healthy. This change of thought process has contributed to the higher

Social selling on the bottled water, and diet colas. The market share of the
sh

non-alcoholic drinks has increased at the cost of alcoholic drinks.

Never before an average person needed the Bottled water and healthy
products as much as they need now. Frequent health capsules from
respected medical professionals advice against alcoholic drinks and
urge people to shift to less sugar and bottled water in their diet to
remain healthy.
The age group of consumers in 37 to 55 is highly sensitive
about their eating habits. As they are reaching their old age, the

This study source was downloaded by 100000783358345 from CourseHero.com on 09-08-2021 00:53:18 GMT -05:00

https://www.coursehero.com/file/92683596/Water-Refilling-Stationdocx/
 concern for longevity comes to fore. As can be summed up, this factor
would continue to increase the demand for the bottled water and
healthy drinks over the time to come (Slack, 2009).

The synergy achieved through the right mix of advertising, marketing

and promotional programs cannot be ignored. The interplay of these
three activities results in efficient marketing of the products. Internet
and television are the new marketing channels opened up as a result of
Technological the new technology. These channels have made it possible to have a
focused marketing for the consumers which is a big achievement
compared to mass marketing. The special effects possible through these
channels make a product look attractive. Cost of machinery, would be
expensive running machinery to package and make bottles to put the
water in. this part of the production must be fast. New machinery

m
er as
would help speed up the process since the world is constantly updating

co
bigger and faster machines are also available and this could increase
eH w
the amount of packaging and bottles made.

o.
rs e
The state of the art technology adopted by the bottling company results
ou urc

in the same level of quality and less dependence on the man power in
production means an effective utilization of the resources. The man
o

power can be used in other functions instead of manual bottling

aC s
vi re

(Driver, 2001).
y

There have been recent changes in the law which mentions the level of
ed d

chemicals allowed in the bottled water. The impact of this legislation is

ar stu

Legal higher as the non-compliant organization would be forced to shut shop.

The deadline of compliance is 3 years by EU countries and the
is

companies would be required to take their product off the shelf if they
Th

are unable to comply with the norms (Hill, 2009).

The concern for the environment is growing as several countries across
Environmental the globe have introduced fines for following environment un-friendly
sh

manufacturing practices. The Bottling companies would need to review

their manufacturing and packaging strategies by developing new
technologies in these areas. Only after that, they would be able to
remain in the business (Blowfield, 2008).

How can water refill stations be more profitable given declining prices?

This study source was downloaded by 100000783358345 from CourseHero.com on 09-08-2021 00:53:18 GMT -05:00

https://www.coursehero.com/file/92683596/Water-Refilling-Stationdocx/
 Here are some tips and strategies in water refill station to be more profitable:

 Market your outlet

Water refill stations don’t usually appear on TV and on print ads. This means that
they are often spread by word of mouth. To spread word about your outlet, offer fliers in
crowded areas in your neighborhood like markets and churches. You can also go door to door
and leave your fliers on the mailbox. If more people know about your outlet, then there’s a
greater chance to get more clients.

 Offer 24/7 service

We can never tell when our clients want their water delivered. Just to be sure, it
would be a good idea to have two shifts to operate 24/7 to provide maximum customer
service.

m
er as
co

eH w
Get a location where there is less competition

o.
We are assuming here that you have a limited budget; those who have sufficient
rs e
capital may focus on delivering to offices or households and so their retail location may
ou urc

not be critical. If you go to an area crowded with competitors, there will be intense price
competition and it will be much harder to get customers since most of them are already
o
aC s

old clients.
vi re

 New Technology
y

Customers prefer their water supplier to be able to provide the latest technology in
ed d
ar stu

purifying and supplying them the cleanest water. Research on what is new in the market and
see if you can afford to acquire and implement them.
is

 Do not neglect maintenance

Th

Some companies try to save on costs by postponing the replacement of filters and
other essential supplies. This is short-term thinking. Once you lose a customer due to
sh

poor quality, it is almost impossible to regain the trust. Furthermore, word of mouth will
carry the news of your poor quality and no amount of promotion can restore your
credibility.

 Do not forget bookkeeping and always meet your tax obligations

While this is normally delegated to the accountant, it would be risky if you know
nothing since you would be the one liable. Learn enough to at least be able to check if
your accountant is not being negligent.

This study source was downloaded by 100000783358345 from CourseHero.com on 09-08-2021 00:53:18 GMT -05:00

https://www.coursehero.com/file/92683596/Water-Refilling-Stationdocx/
  Be friendly
Customers remember a good customer experience, and friendliness can easily be
remembered by clients especially if you’re in a business like water refilling.

 Respond to orders quickly

A fast delivery process lessens the hassle for customers, giving them better
experience as a client. This may entail having more than one motorcycle and driver at a time, but
good service definitely helps boost client relationships.

 Offer water dispensers

Lending out hot and cold water dispensing machines can make you more appealing
over other businesses. Water dispensers can also give added profit if you add a minimum
charge for its use.

m
er as
co
eH w
Thus, a water refilling business is one of the most popular ventures for those with little

o.
experience as an entrepreneur because it is simple to operate and has a steady demand. Starting a
rs e
water refilling station is easy, but success in this business depends a lot on how you market and
ou urc

manage your business since the technical aspect is already developed.

o
aC s
vi re
y
ed d
ar stu
is
Th
sh

This study source was downloaded by 100000783358345 from CourseHero.com on 09-08-2021 00:53:18 GMT -05:00

https://www.coursehero.com/file/92683596/Water-Refilling-Stationdocx/

Powered by TCPDF (www.tcpdf.org)