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Group 8 ± FIJI Water

Alan So
Amika Guo
Maggie Liu
Raymond Chu
Tony Tung p
  
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 Agenda

 Company Overview
 Bottled Water Industry
Challenges
 Marketing Strategy
 CSR Issues
 CSR Recommendations
 Implementation Plan

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Company Overview

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Challenges Faced by the Industry

 §egative impact on the

environment
High carbon emissions related
to its production, storage,
transportation and disposal
 Bottled water is perceived to be
unnecessary expensive
 Bottled water is no healthier or
safer than tap water

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Marketing Strategy

 Positioning
 4Ps ± Product, Price, Place,
Promotion
 Global Expansion Strategy

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 Positioning

 Healthy bottled water

 Affordable luxury
 Pure and natural
 Refinement status, exclusivity

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 4Ps - Product

 From primitive rainforest artesian

aquifer
 All natural, pure, smooth taste, no
aftertaste
 Light mineralization
 High in silica - help strengthen
bones, skin, hair, nails, connective
tissue and anti-aging
 Unique square bottle

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 4Ps - Price

 Premium price
 Affordable luxury
 Position slightly below Perrier
but above Evian

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 4Ps - Place

 Available in high-end hotels,

restaurants
 Mass merchandisers, convenience
stores, drug stores and even gas
stations
 Exclusive distribution partnership
with Cadbury Schweppes in
Australia, US & Canada± tens of
thousands retail stores
 Online in some states

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 4Ps - Promotion
 Unique and high quality image
 Very little ³formal´ or paid
advertising
 Only advertise in in-flight
magazine
 Word-of-mouth, free product
placement, target sampling, event
marketing
 Advocated by popular singers and
movie stars like Leonardo
DiCaprio, Elton John
 Receive publicity by movies, TV
series and 

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 4Ps - Promotion

 



Source from
(http://www.fijiwater.com/blog/tag/barack-obama/)

Œ

Source from
(http://www.fijiwater.com/blog/tag/barack-
obama/)

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Global Expansion - USA

 Largest consumption market in

bottled water
 1997 Los Angeles
 1998 §ew York, Canada
 2000 Exclusive distribution
agreement with Cadbury
Schweppes
 2002 2nd place of imported
bottled water
 2008 1st place of the imported
bottled water
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Global Expansion - Australia

 Relatively large market

 Close to Fiji
 2003 Available in selected
hotels & restaurants
 2005 §ational distribution in
Coles supermarkets
 2007 §ational market
distribution agreement with
Cadbury Schweppes Australia

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CSR Challenges Faced by Fiji

http://www.youtube.com/watch?v=T-
DDeQe§GY4&feature=player_embedded

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Greenwashing
vs Every drop is green

 An article called ³Green or

Greenwashing?´comments:
Every drop of FIJI Water is
transported from thousands of
miles away and consumed
hundreds of gallons of fuels which
is completely unnecessary.

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 Carbon §egative
 Environmentalist claimed that
³carbon negative´ message does
§OT provide the actual
calculation of carbon footprint.

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Environmental Impact
U.S. Environmentalist,
Greenwash Brigade showed
the environment impact of
FIJI water with the following
numbers:
 46 million gallons of fossil
fuel
 216 million pounds of
greenhouse gases

Reference: James McMaster and Jan §owak (2009) FIJI Water and Corporate Social
Responsibility ± green makeover or ³Greenwashing´

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 Transfer Pricing

 FIJI Water produced in Fiji was

sold to the company¶s
headquarters in Los Angeles at a
very low price US$4/carton.
 US$50/carton in the US
 Fiji Islands Revenue & Customs
Authority (FIRCA) accuse FIJI
Water of transfer price
manipulations.

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How to Cope with CSR Challenges?
Solution 1
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How to Cope with CSR Challenges?
Solution 2

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 How to Cope with CSR Challenges?
Solution 4
 Improve (%


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counteract negative accusations
 Constantly disclose donations info.
especially on those funding supports for
 


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 local Fijians / charities




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(http://www.fijiwater.com/blog/20
10/01/
 Employ 3rd party to conduct the carbon
footprint assessment and join the
carbon offset scheme
 Launch a $


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http://www.fijiwater.com/blog/20 contribute to water purification projects
10/09/citymeals-on-
wheels-charity- in other third world countries like §epal,
donation/#more-3098
Kenya, Mongolia«etc.

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FIJI¶s Sustainable Growth Strategy
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 availability of water source
 Fiji Government Policies
 Declining of bottle water sales
 Continuous negative accusations of
those environmentalists or Green
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FIJI¶s Sustainable Growth Strategy
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Appendix:
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 Fiji Water is currently having a charity donation scheme in the US
to improve its CSR.
http://www.fijiwater.com/blog/2010/09/citymeals-on-wheels-
charity-donation/
From 1Sep2010 through October 31, 2010, for every case of FIJI
Water sold in the §ew York City metro area, we will donate $1 to
Citymeals-on-Wheels, a nonprofit providing meals to homebound
elderly.
In addition to donations per case sold in stores, one meal will also
be donated for each case bought via FIJI Water Delivery. All
together, FIJI Water will contribute up to $25,000 from your
purchases.

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Citymeals has been operating in §ew York for almost 30 years, and
has gained a place in the hearts of §ew Yorkers as one of the city¶s
most admirable charities.
Citymeals raises private funds to contribute to 30 community-
based agencies that bring weekend, holiday, and emergency meals
to §ew Yorkers who can no longer shop or cook for themselves.
Last year, 1,500 volunteers helped bring over 2.1 million nutritious
meals to 17,713 frail aged in every borough of §ew York City.
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