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In: Business and Management

Submitted By gramteke
Words 663
Pages 3
Perrier is French mineral water, globally known as naturally carbonated spring water with low contents of sodium. In the past, Perrier controlled about 24% of the total U.S bottled water business, and was dominating half of imported bottles water sector. The market sales of Perrier sparkling water from France rapidly grew in the United States from one million US Dollars to about eighty million per year. However, Perrier now accounts for eighty percent of declining water imports in America and 29 percent of the $225 million of sales yearly in the bottled-water market, which is growing at the rate of 9 percent annually. The American public is trading low in sales of mineral water that is substituted with club soda, according to a trade source. Perrier is challenged by Khisu Mineral Water, which has apparently cured the Korean King Sejong of all illnesses. Perrier’s considerable decline of its market share in the bottled water industry seems to be very challenging for its marketing team and raises some questions of how to survive on the market and regain the previous rhythm of sales. Maybe it’s time for them to consider some inevitable changes in the marketing strategy.

Perrier has a lot of strengths compared to its competitors. It is naturally carbonated from France, unique in its qualities, difficult to copy. It has an internationally strong brand name. So it makes sense to keep the existing product available for the market and do not diversify. From the case study we know that before the product’s price was relatively high to soft drinks but still below the price of liqueur and it was available mostly in gourmet shops. However, Perrier’s management is now suggesting to offer it in supermarket, which is not a good idea because supermarkets do their own promotions, selling their items at a discounted prices or…...

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