Product Reassessment

Product Reassessment: Market Reposition Name Course Professor Date Product Reassessment: Market Reposition A changing preference has been observed with the consumers of beverages in the US. Research indicates that up to 25% of the total liquid consumed by US citizens was carbonated soft drinks (CSD). This was earlier in the decade. However, comparing the consumption of CSD and bottled water, the former was consumed more. This includes 15 billion gallons of CSD compared to 4.7 billion gallons of bottled water. This is a little reduction in the water consumption placing bottled water as the number five preferred beverage. This comes after CSDs, milk, coffee and beer. However by 2008 the consumption of water increased by 15% to 8.7 billion gallons of water while CSD went down to 14 billion gallons. According to the Beverage Marketing Association, the growth of bottled water consumption increased tremendously and passed that of CSD and as a result its revenues also increased. The revenue rose from $6 billion in 2000 to $12 in 2007. As a result many companies entered the market for bottled water in order to reap from its sales. There was an increase in competition between big multinationals like Nestle and PepsiCo and other smaller firms that entered the market (Trout 1996). The average American drinks up to 10 crates of water each year. The increase in demand for water was influenced by a belief that municipal water was not that safe for drinking. People sought safe drinking water and opted for bottled water. Up to 54% of Americans drinks bottled water. This constitutes of more than half the population. The number of regular consumers of bottles water is 36%. The consumption of bottled water has been on the rise over the years and so is the revenue. The number of brands of bottled water that exist in the US alone is 700 and this is bottled by 430 facilities around the c...