Brand Positioning and Strategy
You are working for the Collegetown-based California Happy Valley Beverage Corporation, marketers of California Sunshine Filtered Water. The product has a colorful label and sells well throughout the state, especially among environmentally-conscious consumers. A member of the Collegetown City Council, with a reputation and record for activism, ran across several controversial articles about filtered water production and distribution and proceeded to raise a ruckus, questioning the integrity of Happy Valley Beverage Corporation and the suitability and value of its bottled water product.
The city council has written a pointed letter to your corporation and copied it to the local newspaper, mirroring these concerns. On the attractive bottle label, you and thousands of other consumers can read the statement that says, “Every drop of this healthy, refreshing beverage is guaranteed to be filtered in conformance with all applicable California and federal government regulations.” What the label does not explicitly state, however, is that the water is actually tap water from the town’s municipal system, a fact that has now been exposed.
As a newly minted MBA who has only recently assumed the Director of Marketing and Community Relations position, you have been assigned the privilege of answering the letter. Even though you have two other “rookies” who can assist in the research and composition, the responsibility for the content rests with you. In order for your assistants to do a good job, you have to supply them with some of the basic arguments that will uphold your company’s reputation and stem the tide of this public relations brouhaha. Your Activity responses should be both grammatically and mechanically correct, and formatted in the same fashion as the Activity itself. If there is a Part A, your response should identify a Part A, etc. In addition, you must appropriately cite all resources used in your response and document in a bibliography using APA style. (100 points) (A 4-page response is required.)
Part A
Find at least three (3) journals and/or news articles that might help you outline a response to why consumers should pay for bottled tap water and to determine what other defenses your company could use against this type of consumer activism. You will use this research in Part B. Present your research in the form of an annotated bibliography.
Part B
Write a 2-page memo to your “rookie” associates explaining the company’s present circumstances. Note that your memo will likely be used as the basis of your company’s response to the accusations of the Collegetown City Council. Include responses to the following issues in your memo and support them with the research that you found in Part A.
- Why will/should people pay for a bottle of water? Give a minimum of three (3) reasons supported by the research.
- What are the corporations’ best defenses in the face of this kind of consumer criticism? Give at least three (3) defenses with an explanation of why each reason is important.
PART A: Annotated Bibliography
Mythri, H., Chandu, G. N., Prashant, G. M., & Reddy, V. S. (2010). Fluoride and bacterial content of bottled drinking water versus municipal tap water. Indian Journal of Dental Research, 21(4), 515.
Over the decades, people have increased their purchase of bottled water due to the perceived quality, though bottled water could not be better than the average tap water. Mythri et al. (2010) researched the purchase of bottled water and established that merely 5% possessed the needed fluoride aligned with the state’s provision, while the sampled tap water satisfied 100% of this necessity. Also, the study found bacteria in both samples of bottled and tap water. Therefore, the outcome established that the attained samples on the tap water possessed the content of bacteria of under 3 CFU/mL, colony-forming unit, the measurement used in the fungal numbers or viable bacterial. However, the samples attained from the bottled water contained bacteria from 0.001 to 4 900CFU/mL. The quality disparity between tap and bottled water is essential. However, a discussion with the experts surmised that the presence of fluoride and chlorine in the tap water is a growing concern for the clients. Overall, the effectiveness of the domestic water filters in removing fluoride remains the main reason clients prefer bottled water.
Hu, Z., Morton, L. W., & Mahler, R. L. (2011). Bottled water: United States consumers and their perceptions of water quality. International Journal of Environmental Research and Public Health, 8(2), 565-578.
The research described the client’s behavior and choice towards buying bottled water as aligned with the safety of the domestic water supply. People do not [perceive the local water as safe or of high quality within the US; thus, customers are often more probable to utilize bottled water as the main source of their water. Moreover, negative perception concerning the safety increases the probability of the client buying the bottled water irrespective of if their prime source of drinking water is an extensive municipal water supply system or a small water system
Houseman, M. (2017). World Science Festival: Why do people buy bottled water when it’s free from a tap? NEWS. Retrieved from: https://www.abc.net.au/news/2017-03-27/bottled-v-tap-water/8387618
Dr. Frederic Leusch, an expert of soil and water, highlighted that the domestic tap filter often removes the chlorine though it cannot guarantee its effectiveness with the fluoride. Besides, Gary Mortimer, a retail expert, expressed to the panel that though purchasing a bottle of water is always perceived as convenient in places where the tap water is not accessible, marketing approaches also has a huge role in the clients’ choice of buying. Customers would buy bottled water based on excellent marketing strategies (Houseman, 2017). Further, the attractive labels, including crisp water and the iced capped mountains, are usually the images that draw clients to purchase bottled water, plus the frequency of waters like ‘natural’ and ‘pure.’
Ballantine, P. W., Ozanne, L. K., & Bayfield, R. (2019). Why buy free? Exploring perceptions of bottled water consumption and its environmental consequences. Sustainability, 11(3), 757.
The research highlighted that convenience is the most common reason for buying bottled water. Most of the research participants expressed that they drink tap water at home though buy bottled water when they are out and about. Also, they voiced that their decision to buy bottled water is often affected by the belief that bottled water has health advantages of a certain degree over tap water (Ballantine, Ozanne & Bayfield, 2019).
PART B: Memorandum
To: Marketing Associates
From: Director of Marketing and Community Relations
Subject: California Sunshine Filtered Water Suitability and Value
Date:
Happy Valley Beverage Corporation has remained a proud member of the Collegetown community for numerous years, contributing to environmentally-conscious clients and facilitating a healthy lifestyle for the entire family. The corporation also takes pride in being socially accountable to comply with all the applicable California and Federal government business regulations. Recently, a member of the Collegetown City Council questioned the integrity regarding the appropriateness and value of the corporation’s bottled water product. This baseless assumption could spell potential doom for the company. The corporation has always strived to offer the community healthy bottled water that has been filtered in conformance with all the related Federal government and California regulations. Thus, it is the guarantee the company boasts of on every bottle label they produce. The firm is and will continue to confirm the environmental integrity of its products and will continue educating its customers on the procedure the firm uses to produce bottled water that considers their health. This will attract more clients and regain their trust in the brand.
Based on the research findings, clients will continue to buy bottled water due to its perceived safety and quality, convenience, and marketing strategies implemented by the company. The affordable access to water conveniently bottled and placed on the shelves within various grocery stores, marts, and even vending machines, has impacted clients to buy bottled water. According to Ballantine, Ozanne, and Bayfield (2019), clients buy bottled water while away from their homes merely since it is perceived as more convenient. Also, the water bottle filled from their homes cannot suffice the day long when they are away from home for a prolonged period. Also, quality and safety are the main attributes of the client’s purchase of bottled water. Additionally, Hu et al. (2011) expounded on the perceived quality issue among the clients and tap water. Besides. The research by Houseman (2017) established that domestic water filters do not guarantee the effectiveness against fluoride. Also, Houseman purported that the marketing strategies adopted by the companies have a central role for the clients to buy bottled water as aligned to Gary Mortimer, the retail expert. Happy Valley’s application of the attractive label will continue to foster positive sale trends among environmentally conscious clients.
As our company faces client criticisms against the criticism from the City Council, our course of action is outlined as follows: Mythri et al. (2010) presented the research findings in which the tap water was established to have reduced bacteria compared to the bottled water. Thus, it is apparent to the public that Happy Valley’s water taps. Therefore, the fact that tap water is safer can be applied in our firm’s defense alongside our application of an extensive filtration system. This is significant to note as numerous clients must be reassured that our bottled water product is safe. Another strategy of defense that the company will use is being transparent with the clients. Brand loyalty is the core of consumption for Happy Valley. Clients can only be loyal if the firm’s goodwill is upheld. Therefore, the company will be apologetic and remain humorous in the approach to alleviate any damages done via the publication. The organization will reassert its moral and commitment to providing an excellent environmentally friendly product. Also, the company should utilize the criticism as the leverage to build a better brand and to further set Happy Valley apart in the competitive market. Finally, the company will assure its clients that bottled water continues to be the healthiest option for hydration. Though the current labeling could be considered misleading, which is not the firm’s intent, the company would never promote an unsafe product to the customers. Hence, the organization intends to make necessary transformations to the present label to reflect this recent concern to ensure there is no future misperception. As disappointing as the news could be regarding the criticism, I am confident that the company will rectify the present situation promptly and professionally.
References
Ballantine, P. W., Ozanne, L. K., & Bayfield, R. (2019). Why buy free? exploring perceptions of bottled water consumption and its environmental consequences. Sustainability, 11(3), 757.
Houseman, M. (2017). World Science Festival: Why do people buy bottled water when it’s free from a tap? NEWS. Retrieved from: https://www.abc.net.au/news/2017-03-27/bottled-v-tap-water/8387618
Hu, Z., Morton, L. W., & Mahler, R. L. (2011). Bottled water: United States consumers and their perceptions of water quality. International Journal of Environmental Research and Public Health, 8(2), 565-578.
Mythri, H., Chandu, G. N., Prashant, G. M., & Reddy, V. S. (2010). Fluoride and bacterial content of bottled drinking water versus municipal tap water. Indian Journal of Dental Research, 21(4), 515.
