Tuesday, March 26, 2019
Case Studies » Featured Case Studies » Case Studies » Coca-Cola: Water, water everywhere... - A growing market

Coca-Cola: Water, water everywhere... - A growing market

A growing market

As little as 20 years ago the market share of bottled water in Australia was almost zero. Save for a few imported high-end European brands and some sales of sparkling mineral water, Australian consumers purchased very little bottled water. 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).(See note 3)

Notes

(Source: The Australian Bottled Water Institute 2004, Bottled Water, http://www.bottledwater.org.au/scripts/cgiip.exe/WService=ASP0003/ccms.r?PageId=5002 , viewed 28/March, 2008).

(Source: Beverage Marketing Corporation, cited in John G. Rodwan, Jr., "Bottled Water 2004: U.S. and International Statistics and Developments,' Bottled Water Reporter, April/May 2005.)

(Source: Coca-Cola Amatil Fact Book, 2007).

 

(Page 3 of 7)
Associated with:
Learning Area(s):
  • Business Environment | Mission and Objectives
  • Ethics and Social Responsibility | Risk Management
  • Ethics and Social Responsibility | Socially responsible programs and approaches
  • Global Business | Ethical global management
  • Global Business | Types of global business/expansion
  • Marketing | Ethical/legal marketing decisions
  • Marketing | Market research methods/analysis
  • Marketing | Marketing analysis and segmentation
  • Marketing | Marketing evaluation including use of KPIs
  • Marketing | Promotion strategies and their application
From: Edition 4

Leave a comment

Make sure you enter the (*) required information where indicated.
Basic HTML code is allowed.

Subscribe today!

Purchase a subscription today!

We are delighted to offer you a subscription to access over 80 additional case studies, learning activities, teacher notes and downloadable content!
 
Click here to log-in if you already have an account.

Order the print version!

Order a hard copy!

SPECIAL OFFER - LAST STOCK CLEARANCE
Purchase a print version of Edition 7 for yourself or additional copies for your school! 
 

Commission a case study for your business

If your company or organisation would like to be part of Australia & New Zealand's best case study resource, apply for a case study online or phone us on 
02 4991 5577 in Australia and 0800 990 999 in New Zealand.

What's New?

 

New Edition 7 case studies available now!

Buy a printed copy of Edition 7 case studies.

Subscribe now to get access to over 80 additional case studies and support material.

Teaching Resources

Learning Resources

Useful Resources
Need to contact a teaching association?
Or get ideas for class?
Check out our useful links.

Teaching Hints & Strategies
Share your lesson plans with other
professionals or search for ideas here.
 

Tell us your favourite case study?

What Is your Favourite Edition 7 Case Study?

Log in / log out