We never imagined “water” would be sold in our country. But now time really changes even middle class people are joining it. Numerous companies are penetrating in this industry due to potential. An annual growth sale of mineral water has registered 200 percent in 2000 to 2005. Nestle was the first company which launched mineral water in December 1998 with brand name of Nestle pure life. Nestle is the pioneer and still lead away in this industry created awareness about bottled water and highlights the disadvantages of tap water. Multinational companies of beverages are also joined this industry Pepsi and Coca Cola produced “Aqua fina” &”Kinley. In local Sufi is the big name in bottled water. Government also banned local companies of bottled water like Hamaliya, Freshness and others due to their quality. People also argue none of the company is producing full hygienic water and they are just making money. But I differ from them. In my point of view processed water is much better then taps water.
In Lahore Gourmet water “Pure drinking water” also joined this industry with all size bottles 500ml, 1.5 and 19 liters. Gourmet is capturing market especially in 19 liter bottle.
I think Gourmet key competitive edge is price factor. In business language Gourmet is running business through vertical integration so they are producing products like ice-cream , milk, and “bottled water” at low cost as compare to there competitors. There other competitive edge is gourmet distribution or availability because there outlets which almost covered the entire Lahore. Gourmet bottled water is mostly generating sales through 19 liters bottle. They are not selling new bottle of 19liters bottle. If you go to ask for 19 liters bottle they will be refused you. They are just refilling bottle of their existing customers. They also mentioned a board in there outlets “Gourmet water of 19 liter bottle is temporarily pending, It will be started soon when new plant installed” so we can presume their sales growth they needed to enhance their production.
I saw many customers of Nestle “19 liter bottle” switched to Gourmet water because Gourmet price of 19 liters water is 60rs while Nestle price is 120rs of 19 liter water, so in Lahore people who belongs to middle class rapidly switched to gourmet water as well in offices, clinics, and other places where bottled water is use. The other main reason gourmet is now become strong brand in Lahore so people are satisfied to use gourmet products rather then local companies. Gourmet bottled water is also available in 500ml with the price of 12rs and 1.5 liters at 22rs but their sales are restricted only at their outlets. I consider if accessibility of these bottle in every departmental store so their sales off course would be increased. Because in normal routine when we buy mineral water of 500 ml, the price factor is not much consider. But in “19 liter bottle” price factor is strongly consider.
Nestle pure life is still leady away in mineral water due to its availability all over Pakistan, and brand loyal customer or upper class category deem in nestle pure life.