This Is mainly because there Is an increased concern from the public with an CEO-friendly consciousness associated with the packing, sustainable resources and ecological logistics issues of bottled water. The company currently is trying to find some solutions to mitigate the current situation. One feasible way is through cutting price to attract customers’ attention in order to achieve the sales performance. 2.
Problem Identification and Analysis Quench, as a worldwide bottled water company with a good reputation, recently, Its sales performance has dropped in the United Kingdom mainly due to the Increasing public environmental awareness In terms of the package and sustainable resources of the bottled water. Thompson, cited In Sledge (2008), pointed out that In some degree the bottled water is like the abstract litter after he found nine different polymers consistent with water bottles during tracking plastics particles experiment (Siegel, 2008).
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Apparently, the safety of the package of bottled water indeed becomes an issue. Furthermore, according to the statistics given by Siegel (2008), in 2007, there was billion bottles sold in the I-J. However, only 3 billion of them were recycled. Thus, it is not hard to see that the low recycling rate also can be a reason which results in the obstacle of the resource sustainable development. A problem which arose on the basis of increasing environmental concern was there are a growing number of people asking for tap water In the restaurant (Martin, 2009).
Additionally, Quench has still not made any actions yet to confront the current which will offer a market gap for competitors to fill and an opportunity for them to obtain more market shares. There are four possible solutions to the crisis which has occurred. 3. Act immediately to cope with the negative publicity When a company is entangled in a public relation crisis, the priority is to take immediate action to prevent and deal with the spread of the negative publicity which could affect the company’s image and future operation.
Through the intensive media coverage, the company could produce evidence to the public in order to examine the truth behind of the negative publicity. The advantage of taking the immediate action is to regain the customers’ confidence on the brands and steady the position in consumers’ heart. Consequently, it can restore the brand image. The disadvantage of this, in some degree, too intensive media reports may let customers feel untruthfulness sometimes. Therefore, according to the consumer attitude the company should plan it carefully. 3. Produce environmental friendly package The company should either alter the material of the bottles like biodegradable bottles or reshape it by utilizing less plastic like Nests©’s new “ultra light CEO-Shape bottles”, which is a good pro-environmental practice (Siegel, 2008). The positive side of this solution is that this action satisfies some of the customers. However, the Arabica of this suggestion is in terms of the biodegradable bottles, there is neither completed industrial composting facility for bottles to biodegrade nor separate collections to carry the used bottle.
Besides, the cost of each bottle may be increased. 3. 3 Emphasize the healthier alternative to fizzy drink Comparing with the tap water, bottled water has apparently not prevailed neither in the price nor CEO-friendly aspects. Despite the increasing appeal aiming the public to abandon the bottle and back the tap, in contrast the bottled water is a healthier choice to carbonated beverages even though it has a big market Noon, 2008). The advantage of this recommendation is focusing on the health issue as one of the most concerns currently among the public.
It aims to lead part of customers to buy more bottled water instead of fizzy drink. The disadvantage of this, however, the competition between bottled water and tap water indeed exists and has an indication to become fiercer. Under the pressure of the environmentalist, the future of bottled water is still challenges. 3. 4 Decrease the price According to Minute (2009), currently, what directs the customers’ purchase towards bottled water is the price. In addition, related data from Minute (2009) illustrates that ever 12 million bottled water consumers are motivated to buy the brand which is the cheapest.
However, only 5 million people purchase the one they trust. In the positive aspect, cutting the price can attract customers’ attentions and promote the willingness of customers to purchase. However, the drawback of this is when the effect. Because customers could doubt that whether the product was inferior quality or low valued in which more or less affects the sales performance (Soddy, 2008). 4. Recommendations It is strongly recommended that taking immediate action is a priority for a business or counteracting the negative publicity and restoring the brand image.
In addition, the company needs to continue focusing on the strengths compared with carbonated beverage in regard to the health aspect. This will give a direction for customers to buy their product. Eventually, it is advisable to reset the price and let it be reasonably low; in return, it will catch customers’ attention so as to increase the sales volume.
November 2010] Reflective statement This is my first time to write case study. It is a good experience and it gave me an opportunity to practice more about academic writing. The most difficult part for me was I have got very limited ideas. But I feel better after looking the articles teacher advised us to read. Compared with assignment 1, I have significantly improved my skills of using linking words to let my essay look more coherence. I suggest that I could focus on presenting my ideas more clearly to let my article look more persuaded. Overall, I am satisfied with my first attempt in case study