Coca cola water water everywhere…
When we hear the name Coca-Cola we might not instantly think of water. However Coca-Cola Amatil's brand Mount Franklin is the number-one brand of bottled water in Australia. In a market crowded with hundreds of competitors, Mount Franklin and the Pump range of products account for more than one-quarter of all bottled water sales in Australia.
Coca-Cola Amatil (CCA) is the local Coca-Cola licensee, manufacturer and bottler operating in Australia, New Zealand, Fiji, Indonesia and Papua New Guinea. Coca-Cola is continually striving for growth in this Pacific region. A core objective of the company is to become the supplier of choice for ...view middle of the document...
This was in stark contrast to the high-consuming Europeans and even US water consumers.
However a fundamental lifestyle shift has occurred over this time which has seen this product category grow tremendously. The main reasons for this change can be summarised as:
A shift towards a healthier lifestyle including a move away from carbonated, sugared-drinks
A growing demand for kilojoule-free beverage options, especially when accompanying lighter meals such as bought lunches
The willingness of consumers to pay for the convenience of cleaner, more natural and ready-to-drink chilled water
The convenience offered by innovative packaging options such as squirt and pump-tops and bottle designs.
There is a general feeling within the community that drinking water can be a positive act both for oneself and for the community. Traditionally the carbonated, sugared, beverage market was dominated by children and teenagers. Females dominated the sugar-free or diet categories while males favoured carbonated, sugared drinks and flavoured milks. According to the Australasian Bottled Water Institute, bottled water is consumed by people across all demographics and occupations but the large majority tend to be young singles and couples, in particular females aged between 14-35 years. Generally bottled water consumers can be described as being more health conscious, contemporary and socially aware.(See note 1)
Australians now consume more than 20 litres of bottled water per person each year and the market is growing more than 10 percent a year. However local market consumption is still well below many European countries, with many consuming more than 100 litres annually per capita, such as Italy which consumed 184 litres per capita. The US consumed over 90 litres per capita.(See note 2)
Ongoing growth in health and wellbeing products has impacted on Coca-Cola's revenue sources. In 2001, CCA earned 95 percent of its revenue from carbonated beverages and only 5 percent from noncarbonated sources. By 2007, this had changed to 67 percent and 23 percent respectively, (the other 10 percent now coming from food products following the acquisition of SPC Ardmona).
INTRODUCTION TO BRANDS:
What do we think of when we hear or see Coca-Cola, Microsoft, Google, Toyota and Disney? Well they are all instantly recognisable as some of the top brands in the world. However these worldwide brands didn't earn their reputation for quality and innovation by accident.
One of the key objectives of marketing is that of brand positioning. Organisations strive to ensure that their brand is seen as representing core values that match those of its demographics. According to Coca-Cola's market research, Mount Franklin water has a 99 percent brand awareness and 43 percent of females aged 25-39 say that Mount Franklin is their favourite brand.
There is a general feeling within the community and especially by younger females (the target demographic for bottled water) that...