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1. Fiji Water
By Elizabeth Kulin
www.KulinMarketing.com
Executive Summary:
There are multiple recent strategic issues that the bottled water company Fiji
Water is facing. The economic recession has led to a change in consumer purchasing
trends, and the bottled water category is not as stable financially as it used to be.
Environmental issues, such as waste and pollution, are also affected Fiji Water and its
competitors. Bottled Water companies are attempting to shift packaging and shipping to
more ecologically friendly materials and modes, as consumers favor environmentally
sustainable products. Additionally, as consumers focus on obtaining healthier lifestyles
and diets, they have begun to question the safety and purity of the water that bottled
water companies are producing. Fiji Water has been affected greatly by all of these
issues, as well as negative press about the socio-economic conditions of their souring
location, and in 2008 was forced to layoff 40% of their staffing resources. With limited
resources, an action plan going forward must be cost efficient and extremely effective.
By analyzing and critiquing four potential strategic options, a rational next step for Fiji
Water can be discovered. By supporting this plan with marketing tactics and
communication, it can attempt to stimulate growth for the company.
Current Overview:
History: Fiji Water is bottled water artesian water that was founded in 1993 in Colorado
and first produced and sold to the world in 1996. It is sourced from the Artesian region
of the Fiji Island, packaged, shipped and sold to distributers across the world in various
sizes. In 1997 it was introduced to the US in the California and Florida markets
(answers.com). Today, its headquarters are located in Los Angeles, its President is John
Edward Cochran, and it is a wholly owned subsidiary of Roll International Corporation
(RIC). Roll International Corporation is a private, $2b corporation with over 4.000
employees in industries such as agriculture, consumer packaged goods, floral services
and more (www.roll.com/about-us.php). The acquisition by RIC occurred in 2004 and is
stated to have cost $50m (Beverage Industry, 2004). Additionally, the fist year of the
acquisition was an enormous success when Fiji Water sales increased 50% (Advertising
Age, 2009). Considering the beverage industry is extremely crowded, this was a large

2. feet.
Industry: The beverage industry overall had experienced a cumulative increase of 29%
between 2003-2007 and was stated to be worth $39b (See table 2). Bottled water sales
grew from 4,725m gallons in 2000 to 9,418m in 2008. Additionally, the category won
over 24m new customers during this time (Mintel Oxygen, America’s Changing Drinking
Habits – US-February 2009). However, as the worth of the bottled water category
increased steadily at an average of 53% between 2005-2007, 2008 saw only a 9%
increase (see table 3).
Segment: Within the beverage industry, the bottled water category is split into 3 major
segments: major manufactures which account for 70% of beverage sales (Nestle, Coca-
Cola, PepsiCo and Crystal Geyser Water Co.), private labels, and small manufactures
(Mintel Oxygen, Bottled Water – US – December 2008). Fiji Water is in the small
manufactures segment.
Positioning: Fiji’s water positions as a high quality, thirst quenching, location (Fiji
Island) sourced, artesian water. To support this position, it is one of the highest priced
bottles of water on the shelf at retail stores.
Branding: Fiji Water has created a brand image of tropical, exotic water by its
packaging of palm tree images. The brand has high brand awareness in pop culture
gained from large marketing and advertisement promotions (Fiji water increased its
advertisement budget from $6 million to $10 million in 2008 per Brandweek, 2008).
Competition: As a beverage, Fiji Water competes with all other beverage’s that
consumers choose from during beverage purchasing. Within the category, Fiji Water
competes indirectly with coca-cola and Pepsi brands, Acquafina and Dasani. However,
its direct competition on a segment level are all other small bottled water manufactures,
especially Evian.
Strategic Issues:
Context of Fiji Water: Fiji’s positioning strategy, as a small manufacture player is to
become the brand of choice during the consumers purchasing decision. Fiji Water has
focused on building strong brand equity to achieve this placement. To grow brand
awareness, the company has focused heavily on the promotional channel of
advertisement. In 2008 it was stated by reporters that Fiji Water has increased its
advertisement budget from $6-$10m (Brandweek, 2008). Messaging includes the slogan
“natural artesian water” and images of tropical settings to build a differentiated brand
image in a category where differentiation is difficult, but Fiji Water strives to create a
brand of water that is drinkable and also on experience for the consumer. In addition to
advertising, Fiji Water uses the promotional channel of product placement and has been
incorporated into major Hollywood movies, TV shows, golf tournaments, sailing regattas,
and musical events. Also, the company exercises a controlled distribution strategy to
ensure its availability at best hotels, resorts, spas and restaurants. These market strategies
have paid off. In 2008 Fiji became the biggest imported bottled water brand in the
convenience/PET segment with estimated sales of $90m. This was a 12% increase from
2007, and positioned Fiji Water ahead of the category leader, and $71m worth, Evian.
Evian experienced a decline of 19% in sales in 2008, leaving Fiji Water as the market
leader in the segment of small bottled water manufacturers (Mintel Oxygen, Bottled

3. water-us-December 2008). Furthermore, a sensitivity regarding environmental
preservation has become an increasingly large contextual factor. Since bottled water
products depend mostly on petroleum plastic (non-biodegradable) for packaging, this has
affected both competition and consumer trend changes for the category, and Fiji Water.
Competition: Fiji’s competition includes all other beverages, all other small
manufacture bottled Water Company’s (like Evian), and additional growing segments
such as private label bottled water, tap water, reusable water bottles, and water filtration
systems.
• Private Labels: Research shows that there has recently been a consumer trend shift
towards private label beverages. In 2008, private labels gained 1% of the beverage
industry market share, suggesting that consumers are moving towards non-branded
beverages (Mintel Oxygen, America’s Drinking Habits-us-February 2009).
• Tap Water: There seems to also be an increase in consumer usage/consumption of tap
water. During a study by Mintel Oxygen in 2008, the number 2 reasons why
consumers did not purchase bottled water was because of cost and available access to
tap water (mintel oxygen, bottled water-us-December 2008). This cheaper and
available alternative to bottled water, for consumers, should cause Fiji Water to worry
however, and in 2008 its Sr. VP Thomas Mooney responded by saying that “bottled
water replaces soda…If your tap water tastes great and you like it, drink it. Bottled
water is the better choice if you’re reaching into a cooler” (Judkis, 2008).
• Reusable Water Bottles: New product developments around the consumption of tap
water have entered the market and threaten the bottled water category. Reusable
water bottles, such as Sigg and Klean Kanteen, allow consumers the same
convenience that bottled water does and consumers are noticing. Sigg sales grew
200% in the first 3 months of business in 2008 (Mintel Oxygen, Bottled water).
• Filters: Tap water can also be as clean as bottled water with the use of filters, such as
industry leader Brita. The sales of water filtration systems increased 36% between
2002-2007 (Mintel Oxygen, bottled water-us-December 2008).
These new competitors have entered the market at a time when they can threaten Fiji
Water sales because it is also a time of incredible consumer trend changes for the
beverage industry, bottled water and Fiji Water.
Customer: Out of the 180m bottles of Fiji Water that were sold in 2008, most of the
sales occurred in the United States (Lazarus, 2007), by young adults who respond
favorably to packing attributes, convenience, and the aesthetic look of the bottle’s
packaging. Additionally, studies show that women are the primary consumers in the
category as ¾ women report that they drink bottled water (Mintel Oxygen, Bottled
Water-us-dec 2008). Furthermore, Fiji Water is priced higher than other bottled waters
and therefore, their target audience must be mid-high level income and not price sensitive
consumers. Recently, there have been multiple trend changes among the bottle water
consumer audience that have affected sales of the entire category. Actually, the category
as a whole has been in decline since 2008. Major consumer trend changes that have
occurred are related to macro and micor-environmenal issues such as economy,
environment, socio-economics and health.
• Economy: Since the beginning of the current recession in 2008, sales of bottled water
has been in decline, when, per capita, consumption dropped from 29 gallons to 28.5
(Latimes 2009). Change in volume sales for non-alcoholic beverages, 2006-07 was
5.1 and 2007-08 was -1.0 (Minel Oxygen, America's Changing Drinking Habits - US

4. - February 2009). Anti-bottled water organizations state that bottled water is 1,000
times more expensive than tap water and consumers seem to be noticed (mintel
oxygen, bottled water-us-December 2008). This has negatively affected Fiji Water
financially and in December of 2008, the company laid off 40% of its employees
(Palmeri & Byrnes, 2009). Additionally, water companies have been forced
decreased prices to try and stimulate demand and grow future sales (see table 1).
• Environment: In April 2008 Fiji Water created www.FijiGreen.com. This
development enabled Fiji Water to utilize a space where it could educate and
communicate with consumers about its environmental activities. At the time, Fiji
Water was the only bottled water company to publically state its carbon emission
footprint and announced its mission to become carbon neutral. The site has now
added additional environmental topics such as the Fiji Water mission to help save the
Fijian rainforest, reduce packaging materials, and promote recycling. However, the
public responded with mixed reactions to their transparency and the company as been
under scrutiny by environmentalist for not being as green as they claim. It has been a
PR disaster for the company. Even winning such awards as the Elle Magazine 2008
Green Award and Oracle’s 2008 ‘Empower the Green Enterprises’ Award did not
convince consumers that the bottled water company is the most environmentally
conscious choice of drinkable water. An article by socially conscious publication
Mother Jones written in September 2009 pointed out that Fiji Water can try to be
green, but it is still “long-distance water” (Lenzer, 2009). Consumers seem to agree.
In the consumer comment section of the Fiji Water Green Blog posting that
responded to the Mother Jones article, 57% of consumers were against Fiji Water
claiming that their product is detrimental to the environment, as well as the local
Fijian people (Please note, blogs are not substantial academic sources, but are
considered customer feedback for many marketers).
• Socio-economics: Reports claim that the source location of Fiji Water is poor,
underdeveloped, and lacking of enough clean drinking water for the entire population.
It has been stated that 1/3 of the Fijians are without access to clean water and
suffering from typhoid and other diseases related to contaminated water (Bolwig,
2008). This situation has increased public awareness and concerns that Fiji Water as
a company that is exploiting a nation's limited resources. Multiple consumers have
commented in the Fiji Green blog that Fiji Water is “stealing the local communities
water and money” (Fiji Green Blog). However, Fiji water and the local Fijians have
vocally disagreed. On the Fiji Water Movement website (a Fiji Water division
dedicated to helping to develop and stabilization of Fiji), Fiji Water explains that they
employ ~350 local Fijians in rural areas, pay good wages, provide healthcare and
other additional benefits, as well as partnered to help build schools, healthcare
systems, and brining clean water to over 100 communities. However, consumers
must trust Fiji Water’s claims in order to overcome the socially conscious concerns.
• Health: Obesity, and related diseases attributed by obesity (such as diabetes) have
caused a phenomenal increase in health conscious consumers, claims the National
Health and Nutrition Examination Survey (Mintel Oxygen, Consumer Choices in
Beverage Isle-us-April 2008). Non-alcoholic beverages account for 22% of the total
calorie intake per day for average Americans, age 4 and up (per MilkPEP’s 2006
study, What America Drinks). Additionally, consumers are increasingly interested in
foods and beverages that are absent of artificial additives and preservatives. As
consumers look for beverages that can help support their health objectives they have
been choosing healthier beverage segments such as Juice and Milk, and
predominantly bottled water (see figure 4). However, at the same time, there have
been growing concerns about the health safety of bottle water. Consumers are

5. cautious about what brand to trust. A study performed by the Environmental
Working Group tested 10 popular US bottled water brands and found evidence of
bacteria, Tylenol, and chemicals in the water. Additionally, isphenol A (BPA), a
chemical found in plastic, has been linked to coronary heart disease, heart attacks, and
Type 2 Diabetes by the Journal of the American Medical Association. In
relationship, in 2008 14% of bottled water users decreased their purchases of bottled
water because of BPA concerns (Mintel Oxygen, Bottled Water – US –Dev 2008).
Biggest Issues:
• Economy
o Consumer inability to afford bottled water.
o Consumer switch to tap water & development of products that enable tap
water to be just as clean and convenient as bottled water.
• Consumer trends of concern
o Environmental harm of shipping Fiji Water to selling points and using non-
biodegradable bottles as packaging.
o Socio-economics of local Fijian people affects consumer concern of
purchasing Fiji Water.
o Health interest of clean water and packaging.
Reflection for Management:
React to consumer trends by changing, adding or canceling current business elements.
• Economic – Consider lowering prices.
• Environment – Consider decentralizing the water source to locations closer to selling
points.
• Socio-economics – continue to use Fiji Water Foundation to provide support to the
local Fijians and using marketing tactics to inform the public OR leave Fiji and
source from another location.
• Health – Hire a third party to test the quality of Fiji Water and publish the findings.
Also, consider switching packaging material from plastic to one that is safer and less
detrimental to the environment (such as Corn).
• Growth – Consider developing new beverage products, within financial and resource
capabilities, for current and/or new markets (like major bottled water companies, such
as Coca-Cola and PepsiCo, have).
SWOT:
STRENGTHS:
• Financially successful parent company
(RIC, worth 2b) could be used to create
new products for current or new
markets.
• Socially positive PR. Example: “Give
Clean Water” partnership with US
NGO to provide water filters to over
400 Fijian families in summer of 2009
(Niumataiwalu, 2009).
• High brand awareness.
• Distribution chain is diverse and strong.
WEAKNESSES:
 Unstable brand image as consumers
publically write negative comments on
the internet about the company.
 Located in Fiji where there is a great
deal of civil unrest
 Sourced in a remote location causes for
shipping logistics concerns
 The brand image position as location
based quality water may harbor new
positioning (if needed).
 Staff resources have been declined by

6. • Strong marketing staff team. 40%.
 Fiji water is in the bottled water
category of the beverage industry,
which has been experiencing sales
declines, and consumer disapproval.
 Fiji water is priced higher than other
bottled water.
OPPORTUNITIES:
 The Fiji water foundation could be
leveraged to position as a green bottled
water company before competition.
 Alternative materials used to package
water have become available and
consumers are positively responsive to
it.
 Competition sales have declined, and
may be in positions of weakness.
 The company resources and brand
could be used to create a new or
enhanced product for the same, or a
new, market.
 Bottled water has been in higher
consumer demand over other beverages
in the industry (see table 4).
 Bottled water is forecasted to grow in
the future, post 2009 (see table 9).
TREATS:
• The recession end is not in forecasted
sight and tap water will always be
cheaper than Fiji bottled water.
• The product source is remote from its
selling points and consumers are
beginning to purchase local products
more.
• The product is packaged in a material
that consumers are beginning to avoid
purchasing.
• Consumers can say anything they want
about the brand, online, and it could
negatively affect the brand image.
• Larger beverage companies that are
competition that have larger product
lines and brands in multiple beverage
categories could threaten Fiji Water’s
ability to expand into new products and
markets and sustainable market share.
 Tap water is being promoted as just as
clean and safe to drink as bottled water,
and it is free to consumers.
Strategic Options:
Environmental issues and consumer trend changes have negatively affected the
security of Fiji water as a company. With almost half of their employment resources
eliminated, Fiji Water must layout a plan of action to grow and restore its resources
(financials). This action plan must start with research practical growth options. It is
important to note that Fiji water is only 1% of the total US bottled water category’s worth
of $15 billion (making the value of Fiji Water $150 million) (Deutsch, 2007). There are
many other players, and they are all experience negative financial effects in 2009.
Beverage Industry publication reported that, “for the year ending May 17, 2009, only
private label bottled water and Galceau Smartwater posted gains” (Anonymous, 2009).
Lead bottled water companies such as, Nestle, Coca-Cola and PepsiCo reported flat or
declined sales (Nestle and Coca-Cola reported flat sales of their still beverages, and
PepsiCo -5%) (Pameri & Byrnes, 2009). Therefore, the same time that Fiji Water is
experiencing problems; the entire category is facing the same contextual and competitive
threats.
As the economic environment affects consumer trends, less expensive bottled
water options become more popular. Private labels have become a large threat to all
corporate bottled water brands. Private labels are almost 30% less in price, and

7. consumers are noticing. Between 2006-2008, top brands Aquafina, Dasani and Poland
Springs reported a combined volume growth of 2%. This was 42% less than the private
label segment, which reported a 44% volume in growth (Mintel, Bottled Water, 2008).
This transfer in success occurred in 2008 when private labels experienced a 3.4%
increase in sales, and leading bottled water brands experienced a combined loss of -4.7%
(see table 5). Additionally, as consumers turn to cheaper bottled water options, the
consumption of tap water, which is also 500 times cheaper than bottled water, is on the
raise. Not only have there been a proliferation of new product development to make tap
water as clean and convenient to drink as manufactured bottled water, there is concern
that bottled water sales may be threatened by the governments planned initiatives to
increase the public’s consumption of tap water (Wireless News, 2009). The shifts in
consumer demands and sales among bottled water segments, has forced the players of the
category to evaluate possible solutions. Some brands have changed the manufacturing
and positioning of their bottled water.
For example, not only have all leading bottled water brands lowered sales prices
(see table 1), many have responded to the consumers demand. For example, in response
to the decrease in category sales, Coca-Cola and Nestle are focusing on offering
consumers more options, such as their Vitaminwater and Purelife brands, (enhanced
flavored sweetened water) that can be drank as a juice alternative (Palmeri and Byrnes,
Feb 2009). Additionally, Coca-Cola is investing in, not only a new bottled water
segment (enhanced Vitaminwater, which it bought for 4.1 billion in 2007 from Galceau)
but also a beverage that is forecasted to potentially sell well in the near future, Coconut
Water. With expected wholesale sales of $35 million this year, up from $20 million a
year ago, according to Beverage Marketing Corp., Coca-Cola bought a minority stake in
coconut water company ZICO Beverages LLC in 2009 (less than 20% for $15 million)
(Zmuda, 2009). Furthermore, in response to consumer demands to make drinking water
more environmentally safe, by decreasing the amount of non-biodegradable plastic used
in packing, PepsiCo is now positioning their Aquafina brand as the “thinnest plastic
bottled ever” (Bauerlein, 2009), and Evian is transporting its bottled water by train
instead of truck to lesson CO2 emissions.
It is obvious that the top bottled water brands are responding to the numerous
issues that the category industry is facing. Fiji water will need to evaluate what strategic
move(s) is right for them, in reaction to consumer trend changes, demands, the macro-
economic shift, and the new positioning of the other bottled water brands.
As Igor Ansoff in, “Strategic Diversification” claims, there are 4 options that any
company has when it is contemplating growth strategies. Companies can either try to:
1. Develop new products for new market
2. Present current products to current market
3. Present current products to new market
4. Develop new products for current market
Fiji water will need to evaluate and explore each of these options, draft realistic plans
from them, and then come up with the best option for their brand, resources, and future.
Options:
1. Develop a new product for a new market
a. Juice
b. Hotel resort
2. Present current product, with enhanced characteristics, to current market
a. Lower price to respond to economic shifts and consumer spending
changes.

8. b. Research new packaging materials to respond to consumer environmental
demand.
c. Publish 3rd
party water test to respond to consumer health concerns.
d. Build socio-economic and cause-marketing efforts to respond to consumer
socio-economic concerns.
3. Present current product to new market
a. Increase price to position to new target market consumer segment
b. Leverage brand associations with celebrities to strengthen brand equity
among new market.
4. Develop a new product for current market
a. Produce and sell enhanced water.
All of these options would require leveraging the Fiji Water brand and resources in
order to implement, execute and succeed in growth. In the article “Finding your Next
Core Business”, Chris Zook says that businesses should look for hidden assets that are
untapped and could offer growth opportunities (Zook, 2007). Each of these 4 strategic
growth options would require Fiji Water to leverage it current assets, either its brand
and/or resources, and create a solution out of them. Doing so will hopefully overturn the
negative financial and brand equity losses it has experienced.
1. Develop a new product for a new market:
Juice: As a beverage bottling company, Fiji Water could research other types of
beverages that it could manufacture.
PROS: Manufacturing juice would require targeting a new market, as it is in a
different beverage category than bottled water, however it is a rational brand extension
since juice and bottled water are in the same industry (beverages). Also, Fiji Water could
leverage its existing resources, making the production switch and requirements easy.
CONS: In 2008, fruit juice sales declined -.3% in the U.S. (see table 6) and its overall
category value declined -8%. Additionally, Mintel reports that juice manufactures face
competition threats from other, healthier, beverage segments such as bottled water and
energy drinks. Furthermore, the forecast for juice is negative; market value is expected
to drop from $15.4 billion in 2008 to $14.4 billion in 2013 (mintel fruit juice, 2009).
Hotel: Fiji Water’s original founder, David Gilmour, developed Southern pacific Hotel
Company and grew over 50 hotels in Fiji. Inter-Continental Hotel Group eventually
bought the chain, however this background could present hidden resources and brand
assets for the Fiji Water brand, and options to develop a new chain of hotels under the
Fiji Water brand.
PROS: Not only does the brand have experience in the industry from its former
owner, the brand entered the industry in the past and was successful, it also has the luxury
of a current CEO that is financially wealthy. Fiji Water could leverage these advantages
and build differentiation. It could also leverage its branded position of country of origin
by creating hotels that focus on the Fiji culture, friendly people, beautiful eco-system and
privacy. Additionally, the consumer demand of travel and tourism for Fiji is forecast to
grow from 1,173.1m in 2009 to $2,025.9m in 2019 (See table 8).
CONS: The travel and tourism industry in Fiji is declining. The industry
experienced a loss in Q1 of 2009, of 13.2% (or $25.4m). It was 23.3% less than Q1 2008
in number of tourist arrivals. Additionally, the average days that the country had visitors
decreased 18.7% (statsfill.gov). This recent decline, which may be due to the current
global recession and not a fundamental problem that traveler have with Fiji, has been met
with forecasts that claim positive future demand in travel and tourism to Fiji from
consumers. However, unforeseen potential recurring macro-economic shifts in the future

9. could negatively affect this industry again, creating risk for businesses entering this
industry. Furthermore, this brand extension is not related to Fiji Water’s core current
product, water. This could cause confusion and distrust in the hotel quality among
consumers, and its hopeful the new market of travelers of and tourisms. To limit this
risk, Fiji Water would have to conduct market research among this new market, prior to
project development.
2. Present current product to current market:
A strategic option that Fiji Water could consider is to focus on improving its current
product for its current market; in order to please consumer demands and respond to
context issues. The current issues that Fiji Water would need to respond to with changes
are: the economic recession, consumer environmental concerns, consumer health
concerns, and consumer socio-economic concerns.
Economic recession response: Fiji water could lower the sales price of its bottled water.
PROS: A decrease in price should encourage a spike in consumer demand.
CONS: Lower price could threaten the brand image and positioning of Fiji Water,
which has historically priced higher than other bottled water brands, to portray an image
of higher quality water. Furthermore, this could be a short-term solution that in the long
run hurts the company’s revenue and overall net income. Additionally, this may not been
seen as a solution by consumers, but a desperate response to the competition who are
decreasing the sales prices of their bottled water brands, after all, prices fell 2.9% in 2009
across the board, according to the Wall Street Journal (First Research, 2009).
Environmental Concerns response: Although many bottled water companies are
responding this consumer demand shift by manufacturing the packaging of their water
with thinner plastic bottles, not many have actually solved the consumer want 100% by
changing the packaging to a biodegradable material. Fiji Water should research the
possibility of switching packaging material from petroleum-based plastic to corn or plant
plastic.
PROS: By offering a completely environmentally safe plastic for its bottled water, Fiji
Water would be following analysts Benson P. Shapiro’s advice in the article “What the
hell is market oriented” by truly fulfilling consumer wants and needs that are not being
met (Shapiro, 1988). Fiji Water would not have first mover advantage, as there is a small
bottled water company called Primo Water selling its product in plant plastic bottles, but
it could leverage its stronger brand equity to dominate this positioning with marketing
promotions that communicate a position as the most environmentally friendly bottled of
water that consumers can buy. This improvement could increase sales for Fiji Water.
Krispy Kreme Doughnuts in Phoenix, AZ carries Primo water and states that consumers
appreciate their sustainability efforts, and that their bottled water sales are up 50% from
last year (Ecology, Environment & Conservation, 2009). . These bottles degrade in
less than 60 days, and emit 75% less greenhouse gases and use 49% less energy during
production (Ecology, Environment & Conservation, 2009). This switch could also
respond to the consumer health concerns about BPA leakage from petroleum plastic into
the water.
CONS: Switching vendors and buying a new material can be detrimental on a
companies resources and operating cost expenses. The market for corn and plant plastic
is fairly new and therefore, Fiji Water would not benefit from economies of scale pricing,
as they do with the vastly more popular sold material of petroleum plastic. Furthermore,
Mintel states in its Packaging Trends in Food and Drink 2009 report that, “companies are
just starting to dip their toes in the water in this area, testing bio-based materials to see if
they can provide the required shelf life and barrier protection. In addition, more work
needs to be done to make bioplastics cost-effective and scalable.” (Mintel, 2009).

10. Health concerns response: Switching to safer plastic materials can be a response to
consumer worries about BPA in Fiji Water, but consumers are also expressing worry
about the safety of the water itself. To prove that Fiji Water is clean, and healthy for
consumers to drink, Fiji Water should conceder having their spring artesian water tested
by a 3rd
party, and publish the (positive) results.
PROS: This could prove to consumers that Fiji Water is a clean, safe, and healthy
beverage.
CONS: Consumer may not believe the test results, which could bring even more
negative criticism to the brand’s image.
Socio –economic concern response: Although Fiji Water has historically supported
social growth for the country of Fiji, created a separate organization focused on growth
initiatives, and blogged and built a website to publish these initiatives, consumers still
attack the company stealers and exploiters of Fiji’s natural resources. Therefore, Fiji
Water must conceder investing in additional cause marketing that can be leveraged to
overcome and stop negative publicity of its brand.
PROS: By affiliating with more charities, events and initiatives (such as ones that
incorporate customer involvement in charity raising, giving, donating, etc.) that
counteract the negative accusations on Fiji Water, a new and more positive brand image
could potentially be created. This positive image could boost sales, as consumer could
feel good about drinking Fiji Water.
CONS: Cause marketing can often be seen as a dishonest way for brands to attempt
to increase sales among consumer segments, instead of transparent interest in supporting
a needy cause. This could potentially damage the Fiji Water brand even further.
By listening to consumers new wants and needs, and changing specific elements of
the Fiji Water brand, product, and position Fiji Water could be seen as a solution for
consumers who want something different from their bottled water. This option would be
following analysis opinion McGrath and MacMillan who state that, “be successful by
being a solution”. At the same time, this option requires continued focus on selling
bottled water, which could be risky in the long term if consumer trends and demands turn
away from still, plain, bottled water products in the future.
3. Present current product to new market:
Within the bottled water category there are market segments that companies target by
positioning their brand in a way that will attract consumers of particular segments.
Currently, Fiji Water is positioned as a quality bottled water of the low/mid-income level
consumer. It prices accordingly (higher than competitor bottled waters on the shelf) and
has invested in multiple strategic product placements in movies, TV shows and at
celebrity events to support its position with brand image building. However, there are
bottled water brands that target the niche, high-end income, and consumer segment.
These bottled water brands price exceptionally higher than Fiji Water to sink with their
positioning as the most trendy and exclusive bottled water consumers can drink. A few
examples are: Voss, Berg, and Bling brands. Fiji Water could consider increasing the
price of its bottled water product to compete with these brands and target this niche
segment.
PROS: An increase in sales price of the current product would result in greater
revenue, at no/or little cost increases; resulting in greater profits, if sales volume remain
the same or increase. Additionally, Fiji Water could leverage their existing brand equity,
and relationships with top celebrities, to create a strong competitive position, and
advantage, in this category segment of bottled water.
CONS: The economic recession has negatively effected the majority of consumer’s
willingness to spend more money on bottled water based on their brand alone.

11. Furthermore, as previously mentioned in this report, that there were no bottled water
companies (except for Smartwater) that reported sales gains for 2009, and therefore, even
this top-tier niche segment of high priced bottled water is unsuccessful in this economic
climate. Additionally, by repositioning through branding methods, but without
improving the quality of the product itself, consumers may not accept/believe the new
position. Therefore, this new positioning, and higher sales price, could negatively effect
sales volume of Fiji Water as it would alienate a large volume of their current consumers,
by targeting a much smaller market and involve entering a declined product segment.
4. Develop a new product for current market:
The bottled water category of the beverage industry is made up of different types of
water. The main types that are used for bottling and over the counter sales, are: Spring
water, purified water, mineral water, sparkling water, artesian water, and well water.
Recently, the market has experienced a growing trend of alternating these types of water
into fortified enhanced, flavored and sweetened varieties. Just like plain bottled water,
enhanced brands are developed and positioned in ways to fulfill beverage consumer’s
wants and needs.
Examples of brands and positions within the enhanced bottled water segment:
Soda Subs. Flavored/Juice
Subs.
Health Sport/energy Country
of Origin
Private
Label
Trendy/High
Priced
• Aquafina
sparkling
• Poland
springs
sparkling
• Aquafina
flavor splash
• Enhanced
Propel
flavored
• Enhanced
VitaminWater
(Coca-Cola)
• Nestle
Purelife
• Enhanced
Propel
(Pepsi)
• Enhanced
VitaminWat
er (Coca-
Cola)
• Sobe
Lifewater
• Gatorade
• PowerAde
• Enhanced Propel
(“recharge when
on the go”)
• Aquafina Alive
• Smartwater (tom
Brady)
• Fiji
• Evian
• Poland
Spring
s
• Trader
Joes
• Whole
Foods
• Voss
• Bling
• Berg
Enhanced bottled water has experienced positive growth of 367% over the past 5 years
(beverage industry, 2009). Additionally, as mentioned earlier in this report, the only
bottled water to report positive sales in 2009 was Smartwater, which is a fortified
enhanced non-flavored or sweetened bottled water.
PROS: The success of Glaceau Smartwater, which is owned by Coca-Cola and
reported 464% growth in sales of more than $500 million in 2008, shows that there is a
consumer interest in such products and perhaps an opportunity for Fiji Water to develop a
counter product for the consumer market (Mintel, bottled water 2008). Additionally, this
would be a rational brand extension for Fiji Water in which resources and brand equity
could be leveraged to increase potential of success. Furthermore, this segment is
forecasted to increase in the future. It currently accounts for 6.15% of the bottled water
category sales, and by 2013 it will account for 7.13% (see table 7) (Mintel, bottled
water).
CONS: The Glaceau/Coca-Cola brand is a very large competitive threat to any brand
that attempts to enter the enhanced bottled water segment. The two brands together
(VitaminWater and SmartWater) control almost 2/3rds of the enhanced water segment
sales. In an attempt to enter this segment, and not compete head on with Glaceau, brands

12. will have to position differently. For example, Smartwater positions as a non-flavored
and non-sweetened water for athletes (such as, company spokesperson and Football star,
Tom Brady) to drink during and after a work out to regain energy from the electrolytes in
its water. It is interesting to note that it is currently the only non-flavored, non-sweetened
still water that is enhanced. Each other enhanced water brand, positioned towards being
the best drink for athletes, is flavored, for example, Propel. Another risk of
manufacturing and selling an enhanced water is legal threats. Coca-Cola’s popular
Vitaminwater came under scrutiny and a lawsuit in January of 2009 by the Center for
Science in the Public Interest for potentially falsely marketing the brand as a health
alternative to soda, when it has a high volume of sugar content. Vitaminwater has seen a
sharp decline in sales between 2008-2009. It is reported that Pepsi’s Propel flavored,
sweetened and enhanced bottled water has also experienced a decline in sales in 2009 and
Mintel research database stated in their Functional Beverages 2009 report that “Sales of
enhanced water turned sharply down in 2009 after several years of spectacular growth as
both economic pressures and concerns over healthfulness came crashing down on the
segment.”
Recommendation:
Researcher and analyst Heinz Weilhrich created the TOWS matrix that states that
businesses should try to exploit strengths to capitalize on ops, utilize strengths to counter
threats, overcome weaknesses to pursue opportunities, and shield weakness from
potential threats. Each of the 4 strategic options for Fiji Water has pros and cons,
potential success, and potential failure. However, a couple of options, specifically #2 and
#4, offer greater potential for success, greater potential of avoiding risk, while utilizing
strengths and pursuing opportunities.
1. Develop a new product for a new market: Juice or a hotel resort does not leverage
Fiji Water’s current resources and brand equity as much as developing an enhanced
bottled water product. Additionally, as the forecasts show, enhanced water has a
much more stable and potentially profitable future than juice and tourism.
2. Present current product to current market: Lowering price, changing packaging
materials, publishing 3rd
party water test and investing in greater cause marketing
efforts are, but may not 100% completely, be long term solutions for consumers
wants and needs from the bottled water category. Enhanced water response to not
only what consumers are saying they want, but following where they are actually
spending their money.
3. Present current product to new market: Increasing price and targeting a niche
consumer segment of high-income consumers is extremely risky for Fiji Water during
the current economic recession. Offering better quality of water (inside and/or out),
will better justify Fiji Water not decreasing prices, and perhaps even a slight increase,
during a time when consumer demand needs to be sparked.
4. Develop a new product for current market: Developing an enhanced Fiji Water,
would allow Fiji Water to remain in the bottled water category, which is forecasted to
grow to a worth of ~$76.4 billion across Europe, Japan and the US by 2012 (Wireless
News 2009). With less risk of long term sales decline that options 1, 2, and 3 offer.
It also leverages current resources and brand equity, and provides solutions to
consumer’s wants and needs. Also, Fiji Water could position as a bottled water that is
adding functional benefits for consumers (vitamin health). Fiji Water will have to
differentiate is positioning in order to not compete head-on with market leaders, such
as Glaceau. Fiji Water should look for “blue oceans”, or untapped development and
positioning opportunities that can bring potential sales. By Looking at this chart
again:

13. Examples of brands and positions within the enhanced bottled water segment:
Soda Subs. Flavored/Juice
Subs.
Health Sport/energy Country
of Origin
Private
Label
Trendy/High
Priced
• Aquafina
sparkling
• Poland
springs
sparkling
• Aquafina
flavor splash
• Enhanced
Propel
flavored
• Enhanced
VitaminWater
(Coca-Cola)
• Enhanced
Propel
(Pepsi)
• Enhanced
VitaminWat
er (Coca-
Cola)
• Sobe
Lifewater
• Gatorade
• PowerAde
• Enhanced Propel
(“recharge when
on the go”)
• Aquafina Alive
• Smartwater (tom
Brady)
• Fiji
• Evian
• Poland
Spring
s
• Trader
Joes
• Whole
Foods
• Voss
• Bling
• Berg
There seems to be an available position in the health sub-segment for Fiji Water to
introduce a non-flavored, non-sweetened, nutrient fortified bottled water (all current
enhanced water in the health position are flavored and sweetened). This development
would leverage off of Smartwater’s success in the sub-segment of non-flavored, non-
sweetened, fortified enhanced bottled water, while avoiding direct head-on target market
competition. Additionally, Fiji Water would be avoiding multiple cons by positioning
this way:
Soda Subs. Flavored/Juice
Subs.
Health Sport/energy Country of
Origin
Private
Label
Trendy/High
Priced
Con:
Fiji is a
still
artesian
water
product.
Con:
This category
is not
experiencing
positive sales
Pro:
• Can remain
artesian
water
• Consumer
trends favor
this
positioning
Con:
Would have to
compete with
Fiji water
Con:
Saturated
mature
positioni
ng.
Con:
Would
lose
brand
identity
Con:
Consumers
are
unlikely to
accept a
price
increase at
this time.
As this chart shows, if Fiji entered this growth market of enhanced water, under a
differentiated positioning, that is in line with consumer trends, and is inclusive of brands
that have failed to lead in this brand positioning, Fiji water could have an opportunity to
win market share leadership of the healthy enhanced bottled water segment by leveraging
its existing resources, and brand. As consumers look for healthier options in their intake
consumptions, from their food and beverages, Fiji water can position as the healthiest
bottled water option for them. This would involve developing a new product that
contained vitamins, no sugars, and no flavors. Additionally, Fiji water could also
consider taking solutions from strategic option #2 in order to further meet consumer
demands and strengthen is position as healthiest.
For instance, Fiji Water should attempt to switch to non-plastic packaging
material, and publish results from a 3rd
party water test. As more and more consumers
become concerned with BPA leakage of plastic water bottles, a switch to a safer material,
such as corn or plants, could strengthen their positioning, increase credibility, and allow
for faster consumer adoption of their new product. These measures have little risk and
could decrease chances of negative consumer reactions to the brand’s changes. In the
end, this strategic option offers the best chance of success, by leveraging strengths to take

14. hold of opportunities, and by mitigating weaknesses to avoid threats.
Marketing Strategy:
Marketing Objective - To grow increase brand equity of the new product that can
strengthen positioning of “the healthiest bottled water” and create large sales volumes.
Positioning – The healthiest bottle of water. Affordable, high quality, all natural, 0
calories, vitamin enhanced bottle of water.
4 P’s:
Product – Clean water, enhanced with vitamins that help keep people healthy, and a new
packaging of plastic to ensure no harmful chemicals are leaking into the water.
Place – A mixed distribution channel of wholesalers, retails (with a focus on securing
shelf space in natural and organic markets such as whole foods, wild oats, etc.), and
straight to consumer.
Promotion –
• Messaging – Descriptive, memorable and likable phrases that can effectively grow
brand equity, specifically brand image. Most importantly, Fiji Water marketing
communication should derive from the strategic position as the healthiest bottle of
water, while also establishing a differential position in the consumer minds from all
other enhanced waters in the health segment. Messaging should help build a brand
image that is based on the Fiji Water Complete value proposition.
• Value proposition – A simply, pure, and clean source of daily vitamins. This value
proposition differs from SmartWater, which is enhanced with only electrolytes.
Electrolytes hydrate humans, however water is already hydrating. Therefore, the
typical consumers of Smartwater are individuals who need extra hydrating, such as
athletes. This is a different value proposition offering that Fiji Water Complete will
supply to consumers. Fiji Water Completes’ value proposition a dose of a persons
recommended daily vitamins, without extra additives that are unhealthy. This is
different than SmartWaters value proposition, as well as the bottled water brands in
the health segment (VitaminWater, Propel, and Lifewater).
Direct competition for Fiji Water Complete are the heath segment brands. The brand will
have promote its value proposition difference from these brands, by educating consumers
through marketing communication messaging. The competitors do the following
messaging:
• VitaminWater – “Drink better water” and “hydrate responsibly”
• Propel – “Flavor to hydrate, vitamins to nourish”
• Lifewater – “a thrillicious taste experience that's good for your body”
The value proposition difference between these brand and Fiji Water Complete enhanced
water, is the reality behind their messaging; the product’s ingredients:
• VitaminWater – This water has calories, carbohydrates, sugar, and not a complete list
of vitamins per bottle.
• Propel – This brand has calories, sodium, carbohydrates, sugar, and a limited amount
of vitamins in each bottle.
• Lifewater –There are calories, sodium, carbohydrates, sugars, and limited vitamins in

15. each bottle of this water.
Therefore, Fiji Water should tailor its marketing communication messages around the
realities of these brands. By doing so, the Fiji Water Complete brand equity, as the
healthiest bottled water, can be built. The messages themselves should be implemented in
the marketing tactics and brand element.
• Tactics - Cost efficient, while also effective in growing brand equity, especially
brand awareness.
 PR – Outreach to health and green reporters of newspapers and magazines
who share a similar audience as the consumer target market that Fiji Water
Complete it attempting to reach.
 Outdoor Advertising – Post print ads on bus stops, near retail stores that sell
Fiji Water Complete, by health food stores, by health clinics and organizations
(yoga studios, etc) and neighborhood parks.
 Print Advertising – buy ad space and promote new positioning in health,
green, and food & beverage related magazines and newspaper sections that
share a similar target market.
 Social Media – This is a free tactic where Fiji Water Compete can engage
with consumers, and encourage a viral spread of the new brand. This can be
attempted by creating a presence on social networks, YouTube (post internet
commercials that promote the positioning), and participating in blog outreach
(attempt to get bloggers with large audiences to talk about the Fiji Water
Complete brand’s differentiation).
• Branding – Use brand elements to implement the marketing communications
messages. The new brand elements should help build brand equity, establish
positioning and create differentiation among competitors and consumers.
 Brand Name – “Fiji Water Complete”; By keeping the original title, Fiji
Water, the brand value and equity that is associated with that name can be
transferred to the new brand. Additionally, by adding the word “Complete” to
the end of it, consumers will know that this is a different product; a different
kind of water. Furthermore, the word complete means total, not lacking,
organic and whole, which can support the positioning of healthiest water you
can drink.
 Slogan – “Completely healthy”; This slogan relates to the differentiation from
competitors in the health segment who are not as healthy as Fiji Water
Complete. It describes to the consumer audience that this water is 100%
healthy for them, and therefore does not include calories, sugars, carbohydrate
or sodium.
 Logo – A heart shaped globe; This speaks to the products ability to keep
people healthy (their hearts), and how it is a healthy product for the world (the
bio-degradable packaging and social sustainability projects in Fiji).
 Tagline – “Vitamins, with the other stuff.”, “Healthy water, completely
simple.”, “and A full does of vitamins, in 100% water” “Take your vitamins
with water, not something else.”, “Vitamin water, without the additives.”
As explained in the book, Strategic Brand Management; Building, Measuring and
Managing Brand Equity by Kevin Lan Keller, the criteria for choosing brand elements is
strategic. I have chosen each brand element so that they build brand equity, but also so

16. that at least one brand element is meaningful (descriptive), memorable (easy to recall),
and likable (fun and interesting). Each brand element eludes the following criteria:
Meaningful Memorable Likable
Brand Name X X
Slogan X X
Logo/Character X
Tagline X X
Price - The pricing of the this new brand will be $3.13-3.15 per 1 liter bottle. In
relationship to competitors (direct and indirect), this pricing is 13.4% higher than
SmartWater, but only 1.62% higher than direct health segment competitors VitaminWater
and Propel, and 20.4% lower than Sobes Lifewater. Since the positioning of the Fiji
Water brand has always been and will continue to be affordable high quality bottled
water, this pricing level (in additional to promoting the quality of the product in
comparison to the other brands) will supported the new brands place among competitors,
without risking neglect from economically affected price sensitive consumers.
Financial Projects:
Currently: (Source: Shah, 2008 & FijiWater.com)
Size Cost/bottle Revenue/bottle Profit/bottle
Gross
Margin
330ml $0.07 $1.32 $1.25 94%
500ml $0.11 $1.56 $1.45 93%
1 liter $0.22 $3.13 $2.91 93%
1.5
liters $0.33 $4.17 $3.83 92%
Compared to Smartwater:
Volume
Smartwater sales
price
Fiji Water sales
price Difference
1 liter, 12 bottles $16.00 $37.50 134%
1.5 liter, 12
bottles $24.25 $50.00 106%
$2.77/1lt $3.08/1lt $3.10/1lt $3.14/1lt $3.95/1lt

17. Fiji Water Costs:
Variable
• Vitamins – Nutricap Labs is a producer of raw vitamin powders and liquids. Their
pricing is: $.20/16ounces (or 32 tablespoons) of powder multi vitamins. 1 liter bottle
of water should have 1 tablespoon of the powder sustains. Therefore, 1 liter bottle
worth of vitamins would cost $.00625.
• Plastic – Naturalworks LLC is the largest manufacturer and seller of biodegradable
plastics. Dr. Richard Bopp, Material Scientist at Naturalworks states that their
pricing of PLA (corn derived plastic) is: .80/lb PLA (or 453.60 grams). This is $.12
more than PET (petroleum based plastic, which is about .$68/lb. However, it is
important to note that Dr. Bopp claims that the price of PET is unstable and changes
regularly. Therfore,1 gram would cost .00176 (453.60/$.80) , and since water bottles
weight 25.94 grams each (Bialik, 2007), 1 liter bottle of PLA plastic would cost
$.046 ($.00176*25.94). This is Which is $.007 more than original Fiji Water (1
bottle of PET plastic would cost $.039).
• Shipping - For 1 liter bottle of water: Asia to Fiji takes 2.3g of fuel & Fiji to USA
takes 81g of fuel (a total of 83.3g). 1 barrel of fuel costs $60, and holds 159 liters of
fuel. There are 850g/liter, and therefore, 135,150g’s (159*850) per barrel. Which
means that 1 liter bottle of water costs $.037 in fuel (83.3 / 135150 = .00062*60 = .
03698112). (source : Paster, 2007)
The additional Variable cost that these recommendations would require is outlined in this
chart, which shows cost increase of $.013 per liter bottle.
Vitamin Cost Plastic Cost Shipping Cost 1 liter Bottle
Variable Cost
Fiji Water $.039 $.037 $.076
Fiji Water
Complete
$.00625 $.046 $.037 $.089
Since variable Cost + fixed Cost = total Cost, 1 liter of Fiji Water variable cost of $.076 +
X = $.22. So the fixed costs are $.144 per liter bottle. Since fixed costs do not change,
the total cost of 1 liter of Fiji Water complete would be $.013 more. Additionally, if Fiji
water is worth 1% of the industry’s value, or $150m, and only sold 1 liter bottles
(hypothetical for analysis purposes), they would have to sell 51,546,392 ($150/profit
bottles. This chart shows the breakdown of these cost in detail:
1lt Bottle
Variable Cost
1lt bottle
Fixed Cost
(Total Cost –
Variable Cost)
1lt bottle
Total Cost
(Variable cost +
Fixed Cost)
Total cost of
~51.5m 1 liter
bottles
Fiji Water $.076 $.144 $0.22 $11,340,206
Fiji Water
Complete
$.089 $.144 $0.233 $12,010,309
Difference in
Cost
$.0130 $670,103
Selling Fiji Water complete would cost just over half a million dollars more, if sales
volume remains the same. To protect against this loss, Fiji water will have to either:

18. 1. Make lower gross profit margins
Brand Size Cost/bottle Revenue/bottle Profit/bottle Gross Margin
Fiji Water 1 liter $0.22 $3.13 $2.910 92.971%
FW Complete 1 liter $0.23 $3.13 $2.897 92.556%
Difference -0.415%
2. Transfer additional costs into sales price
Brand Size Cost/bottle Price/bottle Profit/bottle
Profit of ~51.5m Unit
Sales
Fiji Water 1 liter $0.2200 $3.1300 $2.910 $150,000,000
FW
Complete 1 liter $0.2330 $3.1430 $2.910 $150,000,000
Difference
(Breakeven
difference)
$0.0130
.424%
3. Sell more bottles at same price
Brand Size Cost/bottle Revenue/bottle Profit/bottle
Sales Volume to make equal Profit of
$150,000,000
Fiji Water 1 liter $0.2200 $3.13 $2.910
51,546,392
FW
Complete 1 liter $0.2330 $3.13 $2.897
51,777,701
Difference
231,309
Since this is a new venture, and there is uncertainly of how consumers will react,
choosing option #3; consumers purchasing over 2 hundred thousand more bottles of Fiji
Water Complete than prior years of Fiji Water original, could be unrealistic and risky the
company to depend on. Additionally, option #1 involves monetary loss, which could be
ok for Fiji Water since it is owned by an independently wealthy CEO (worth $2b), or it
could mean more layoffs and potential bankruptcy. Therefore, even though increasing
the price a slight .4% could risk a decrease in consumer demand, if option #1 would
greatly negatively effect the company’s stability, it may be the correct risk to take for Fiji
Water Complete. The risk is high purchasing volume retailers in the distribution chain
switching to lower priced competitors, and consumer choosing lower priced water such
as tap or private label. However, the price increase per unit is very low, and consumer
may not even notice the .4% increase. Another option is , if Fiji Water Complete gains
consumer demand and positive sales, the retailers will be forced to carry the product.
Therefore, I recommend that the price be set at $3.14-$3.15 per 1 liter bottle of Fiji Water
Complete.
Action programs / Implementation strategy:
1. Manufacture
a. Buy vitamins and PLA.

19. b. Train staff about vitamins and PLA and how to use them in production.
c. Fix Equipment to work with new ingredients.
d. Produce bottles and prepare cases for shipping.
2. Schedule promotion and launch with resources
3. Take to market
a. promote using marketing tactics
b. distribution management with transportation and retailers.
c. Manage and sell
Measurement/Controls:
4. Quantitative = sales, market share, brand awareness in comparison to past Fiji Water
sales and competition, such as SmartWater.
5. Qualitative = customer feedback, brand image
Maintain and Improve:
6. Use Quantitative results to benchmark and improve sales.
7. Use Qualitative feedback to improve product and consumer relations.
Contingency plan:
Best case – The best case scenario for this Fiji Water new product plan is that the
company will be successful. The new product will sell, and revenue will be more than
cost. The generated profits could be used to rehire staff, invest in consumer wanted cause
marketing, and saved for future potential recessions and customer trend changes
Worst case – The worst case scenario for this new product is that consumers will not
accept it, will not archive strong brand equity, or competitive advantage in the enhanced
water segment of bottled waters. In this case, sales would not generate enough revenue
to cover costs, and the project would have to be revenant, or canceled. At this worst case
point, Fiji Water would have the option of returning to their core product, exiting the
industry, or attempting to reposition with a different new product.
References:
 (http://www.roll.com/about-us.php)
 Advertising Age, Readers present picks for Advertising Age's Annals of Marketing
Disasters, 5/18/2009, Vol. 80 Issue 18, p6-6, 3/5p
 ANA NIUMATAIWALU, Water filters for residents, Fiji Times Online, August 2009
 Anna Lenzer, Fiji Water: Spin the Bottle, Mother Jones, September/October 2009
Issue
 Anonymous. Beverage Industry. New York: Jul 2009. Vol. 100, Iss. 7; p. SOI8 (1
page)
 Anonymous. Primo Water: . Primo Water Corporation; American Grown Bottle,
Made From Plants, Lifts Bottled Water Sales Ecology, Environment & Conservation.
Atlanta: May 29, 2009. p. 398
Anonymous. Wireless News. Coventry: Aug 24, 2009.
 Beverage Industry, Fiji Water acquired by Roll International. Dec2004, Vol. 95 Issue

20. 12, p8-8, 1/6p http://0-web.ebscohost.com.library.ggu.edu/ehost/pdf?
vid=6&hid=102&sid=86d55491-4a37-4d78-9eb1-22f79292cf3e%40sessionmgr110)
 Chris Bolwig, Fijigovernmentyieldstobottledwatercompanypressure,IceNews,July2008
 Christopher Palmeri and Nanette Byrnes, Bottled Waters Lose Their Effervescence,
BusinessWeek, January 2009
 Christopher Palmeri and Nanette Byrnes, Business Week, Coke and Pepsi Try
Reinventing Water, February 19, 2009
 David Lazarus, L.A. business tries to make Fiji Water a star, San Francisco Chronicle
(CA); 01/21/2007)
 Fiji Green Blog, FIJI Water Responds to Mother Jones Article, August 2009,
http://blog.fijigreen.com/2009/08/fiji-water-responds-to-mother-jones-article/
 Finding Your Next CORE Business Chris Zook. Harvard Business Review. Boston:
Apr 2007. Vol. 85, Iss. 4
 First Research, Industry profile, Beverage Manufacture and Bottling, 10/12/2009
 http://www.answers.com/topic/fiji-water-llc
 http://www.elle.com/Life-Love/Society-Career-Power/ELLE-s-2008-Green-Awards/
%28imageIndex%29/13/%28play%29/false
 http://www.oracle.com/us/corporate/press/017541_EN
 http://www.statsfill.gov.fj/Releases/tourism _earnings.htm
 http://www.wttc.org/bin/pdf/original_pdf_file/fiji.pdf
 Kenneth Hein. Advertising: Fiji Water Ups Ad Spend Pours Forth 'Eco' Message.
Brandweek. April 14, 2008.
 Martin Roll, Asian Brand Strategy: How Asia Builds Strong Brands, Palgrave
Macmillan, New York, NY 2006)
http://www.venturerepublic.com/resources/Fiji_Water_-
_The_exotic_water_brand.asp
 MAURA JUDKIS, Fiji Water Chimes In on Bottled Versus Tap, US News & World
Report, July 2008
 Mintel Oxygen, America's Changing Drinking Habits - US - February 2009
 Mintel Oxygen, Bottled Water - US - December 2008
 Mintel Oxygen, Consumer Choices in the Beverage Aisle - US - April 2008
 Mintel, Fruit Juice and Juice Drinks - US - January 2009, Market Size and Forecast
 Mintel, Functional Beverages - US - September 2009 Segment Performance
 Mintel, Packaging Trends in Food and Drink - US - March 2009, Sustainability:
Innovation and Innovators
 Natalie Zmuda, Zico: an America's Hottest Brands Case Study, Advertising Age, Nov
16 2009.
 Research and Markets Adds Report: Future Opportunities in Bottled Water
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Journal (Eastern edition). New York, N.Y.: Aug 31, 2009. p. B.1
 What the Hell Is 'Market Oriented'? Shapiro, Benson P.. Harvard Business Review.
Boston: Nov/Dec 1988. Vol. 66, Iss. 6; p. 119 (7 pages)
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• Pablo Päster, MBASustainability Engineer, What’s the True Environmental Cost of
Fiji Water?, triplepundit, Feb 2007.
• Sukhdev Shah, The true cost of water, Fiji Times online, Jan 2008.
• ELIZABETH ROYTE, "A Fountain On Every Corner", New York Times. Find A
Fountain, May 23, 2008.

21. • Claudia H. Deutsch. For Fiji Water, a Big List of Green Goals. New York Times
(Late Edition (East Coast)). New York, N.Y.: Nov 7, 2007. p. C.3
• Carl Bialik, Water Bottles Slim Down, Wall street journal, Dec 2007
Table 1:
Pricing over time (from Mintel Oxygen, Bottled Water – US – December 2008.
“Competitive Context”):
2005 2006 2007 2008 % change 2005-08
$/gallon $/gallon $/gallon $/gallon
Aquafina 2.25 2.17 2.09 2.02 -11.4
Dasani 2.99 2.53 2.36 2.12 -41.0
Poland Spring 1.88 1.76 1.79 1.72 -9.3
Private labels 1.60 1.55 1.47 1.41 -13.5
Table 2:
U.S. new non-alcoholic beverage introductions, 2003-07 (from Mintel Oxygen,
Consumer Choices in the Beverage Aisle –US- April 2008).
Beverage category 2003 2004 2005 2006 2007 Change 2003-07
# # # # # %
All channels
RTD juice and juice drinks 289 564 391 313 306 5.9
Carbonated beverages 84 212 153 146 118 40.5
Sports drinks 17 31 29 12 36 111.8
Energy drinks 24 67 64 70 30 25.0
Bottled water 65 116 107 99 106 63.1
RTD iced tea 28 69 48 52 58 107.1
Total 507 1,059 792 692 654 29.0
Table 3:
FDM* sales and forecast of bottled water, 2002-12 (from Mintel Oxygen, Consumer
Choices in the Beverage Aisle –US- April 2008).
Year Sales at current prices Index Index
$million % change 2002 = 100 2007 = 100

22. 2002 2,884 - 100 56
2003 3,194 10.8 111 62
2004 3,485 9.1 121 67
2005 4,130 18.5 143 80
2006 4,744 14.9 165 92
2007 5,183 9.3 180 100
Table 4:
Non-alcoholic beverage sales volume 2003-2008 (from (Mintel Oxygen, America's
Changing Drinking Habits - US - February 2009).
Table 5
(Mintel) FDMx sales of leading bottled water companies, 2007 and 2008
52 weeks ending November
4, 2007
52 weeks ending November
2, 2008
% change
2007-08
$million % $million %
Nestlé S.A.
(Switzerland)
1,478 28.5 1,392 27.2 -5.8
Coca-Cola Co. 1,254 24.2 1,252 24.5 -0.2
PepsiCo Inc. 857 16.5 770 15.1 -10.1
Crystal Geyser
Water Co.
153 3.0 153 3.0 0.0
Subtotal 3,741 72.2 3,567 69.8 -4.7
Private label 1,076 20.8 1,112 21.8 3.4
2003 2005 2008 Change 2003-05 Change 2005-08
$million $million $million % %
Total soda 13,735 13,475 13,072 -1.9 -3.0
Regular soda 9,311 8,596 8,268 -7.7 -3.8
Diet soda 4,425 4,879 4,804 10.3 -1.5
Milk 10,793 11,503 12,758 6.6 10.9
Fruit juice and juice drinks 9,961 9,658 10,182 -3.0 5.4
Bottled water 3,197 4,148 5,072 29.7 22.3

23. Other 367 7.1 430 8.4 17.0
Total 5,184 100.0 5,108 100.0 -1.5
Table 6
(Mintel) Total U.S. sales and forecast of fruit juice and juice drinks at current prices,
2003-13
$million % change Index (2003 = 100) Index (2008 = 100)
2003 16,767 - 100 109
2004 17,553 4.7 105 114
2005 15,891 -9.5 95 103
2006 16,371 3.0 98 106
2007 15,461 -5.6 92 100
2008 (fore) 15,408 -0.3 92 100
2009 (fore) 15,437 0.2 92 100
2010 (fore) 15,326 -0.7 91 99
2011 (fore) 15,129 -1.3 90 98
2012 (fore) 14,808 -2.1 88 96
2013 (fore) 14,436 -2.5 86 94
Table 7
(Mintel) FDMx sales and forecast of enhanced water, 2004-14
Year Sales at current prices Index Index
$million % change 2004 = 100 2009 = 100
2004 208 - 100 27
2005 335 61.1 161 43
2006 514 53.4 247 66
2007 758 47.5 364 98
2008 828 9.2 398 107
2009 (est) 773 -6.6 372 100
2010 (fore) 793 2.5 381 103

24. 2011 (fore) 857 8.0 412 111
2012 (fore) 983 14.8 473 127
2013 (fore) 1,132 15.1 544 146
2014 (fore) 1,286 13.6 618 166
Table 8
(World travel and tourism council) Travel and Tourism Fiji:
- US$ mn 2004 2005 2006 2007 2008E 2009F 2019F
Personal Travel & Tourism: 112.5 124.5 119.1 133.4 160.9 149.3 278.8
Business Travel & Tourism: 42.6 48.6 50.5 57.6 67.5 59.3 86.4
Corporate: 37.7 43.2 44.9 51.3 60.3 53.0 76.2
Government: 4.9 5.4 5.6 6.3 7.2 6.3 10.2
Government Expenditures – Individual: 16.5 17.6 18.6 20.1 23.6 22.2 33.4
Visitor Exports: 584.3 675.6 636.7 648.2 693.9 588.5 1,097.4
Travel & Tourism Consumption: 755.9 866.3 825.0 859.2 945.9 819.3 1,496.0
Government Expenditures – Collective: 37.9 40.4 42.6 46.0 54.2 50.9 76.5
Capital Investment: 199.9 204.3 234.8 253.4 301.8 280.5 415.0
Other Exports: 18.4 18.5 19.4 20.8 21.5 22.4 38.3
Travel & Tourism Demand: 1,012.2 1,129.5 1,121.9 1,179.4 1,323.5 1,173.1 2,025.9
Table 9
Total U.S. sales and forecast of bottled water at current prices, 2003-13
$million % change
2003 8,526 -
2004 9,170 7.5
2005 10,007 9.1
2006 10,858 8.5
2007 11,706 7.8
2008 (est) 12,174 4.0
2009 (fore) 12,566 3.2
2010 (fore) 13,353 6.3
2011 (fore) 14,173 6.1
2012 (fore) 15,006 5.9
2013 (fore) 15,872 5.8
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