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The Bottled Water Industry

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Almost every company discusses, at length, the need for customer service and the significance of supplying true excellence to its customers. However, very few actually follow through with what it takes to attain this excellence. This is particularly true in the bottled water business since not all providers share the opinion that customer service is of the utmost importance in any business.



The bottled water industry services a wide customer base with numerous companies and individual clients. The industry is characterized by a small number of very large firms and a substantial number of relatively small consumers with specific geographic niches.

The Nature of the Business:

The bottled water business consists of the manufacturing and delivery of spring or purified water in small packages or large containers such as 5 gallon bottles. The product is delivered directly to the customer’s site in either company owned delivery vehicles or through common carriers. Each individual bottled water company provides an implicit promise to its customers that it will manufacture the highest quality product and deliver that product at the agreed upon time.

Many, Many Customers:

The customer base in the bottled water industry is very diverse and ranges from individual consumers with single bottle requirements to large multi-cooler business accounts with significant water needs. Each client has its own specific requirements, which are met by the company providing the services and product.

The Customer Service Promise and the History of the Business:

In the past, various bottled water companies have focused on process rather than customer service. Many firms acted on the belief that the delivery of a superior product completed their obligation to the customer. However, the customer service promise includes much more than a simple delivery of a quality product and requires additional services such as on time delivery, proper pricing, responding to additional delivery requests and other specific needs. One of the most important customer responsibilities is the ability to communicate their concerns not only to the customer service departments, but also to the heads of each company.

Current Status of the Industry (The Unfulfilled Promise):

Although the bottled water industry may seem rather simple, in reality, it is a very complex business. High quality water must be produced and delivered to the customer's location on time and as ordered. Often enough, customer requests change without warning, which is one reason why flexibility is important to the success of the bottled water company.

Frequently, the water needs of the customer exceed original expectations, which causes for shortages occur. However, in order to avoid such a situation as this, the supplier would have already invested in the communication and stock infrastructure to meet all of its clients’ demands.

For those suppliers who private label water as a means of customer advertising, the design, printing and durability of the label on the bottle is a critical factor. Therefore, companies creating labels of lesser quality in the design and printing of the labels clearly provide a substandard product to their customers.

Communication and the Customer Promise:

Many bottled water suppliers neglect the reality that proper communication channels serve as the basis for fulfilling the customer promise. An overall reliance on voicemail and/or e-mail, an inability to respond quickly to customer needs and the absence of true customer service assistance has created a negative impression of the industry for many customers.

A proper communication system has many technical elements but it should begin with a willingness to include human contact in the communication link. No customer enjoys being dropped into the voicemail void, therefore, the bottled water suppliers that continue to prosper are the companies that uphold the customer service promises and guarantee personally answered customer service calls, which they promptly use to respond to client inquiries and concerns.

Accept Responsibility and Do What It Takes to Provide Customer Satisfaction:

There are many excuses for failure to perform but the bottled water suppliers who are truly world class are those who accept responsibility and persevere with their customer satisfaction guarantees. This often includes obtaining little or no profit on a particular transaction in order to fulfill the customer service promise.

Size is not the determinant in the customer service equation. Often, smaller companies are ready, willing and able to better fulfill the customer promise.

Look for a supplier with a track record of not only achieving the customer promise but also one with a history of fulfillment of the promise.
The Bottled Water Industry
But like any business, care is required to develop the business in a profitable way and the best way to do this is to establish a focused business development effort that utilizes the tools and techniques established by successful business.

The first step is to define the concept ?business development?.

Definition:

Business development ?includes a number of techniques designed to grow an economic enterprise. Such techniques include, but are not limited to, assessments of marketing opportunities and target markets, intelligence gathering on customers and competitors, generating leads for possible sales, follow up sales activity, formal proposal writing and business model design.

Business development involves evaluating a business and then realizing its full potential, using such tools as marketing, sales, information management and customer service. For a sound company able to withstand competitors, business development never stops but is an ongoing process.? (source: Wikipedia)

From this definition it is clear that business development is more than closing the sale and each technique requires detailed planning and follow up.

Using the concepts of business development, our company developed a robust, profitable private label water business but it took considerable initial and continuing effort.

Unique Value Proposition:

Our first challenge was the development of a Unique Value Proposition that answered the question ?Why should I buy from you?.

After a review of the market and the competition it was determined that private labeled bottled water was a powerful, cost effective, advertising vehicle but because a customer's brand was affected, high product quality and customer service was required. Our Unique Value Proposition was established and stated:

?Element H2O will provide powerful and cost effective advertising and brand promotion for its customers based upon the highest quality consumable private label water, label design and customer service.?

Marketing and Target Markets:

Field and internet research was conducted with the basic question being: What are the characteristics of industries are most likely to use our product at a price that is profitable to us. Key characteristics were developed:

? Prospects that provide a quality product or service.

? Industries operating in a competitive market environment where product/service differentiation was critical.

? Prospects that required drinking water for customers, clients or prospects.

? Prospects that maintained a quality brand image.

Initial research indicated that the following industries were initially high potential targets:

? Hospitality (Hotels and Spas)

? Banking

? Mortgage Brokers

? Real Estate

? Ski Resorts

Sales Channels and Market Access:

It was decided that two channels would be used to go to market ? direct selling and e-commerce. An e-commerce site was developed that allowed customers to design their own label for the bottles or provide an existing design consistent with the customer brand strategy. Search Engine Marketing and Optimization techniques were used to promote this channel.

A direct sales staff was formed to develop and close sales opportunities and these efforts were supported by a direct mail campaign and networking with local chambers of commerce, local trade associations and lead sharing groups.

The sales effort, after a series of initial false starts and disappointments matured successfully as we reviewed and revised the fine points of our effort.

Product Quality and Customer Service:

Our corporate strategy for all products is to stay at the high end of the market and this was particularly true for private label bottled water where the market is characterized by cutthroat competition and many low quality vendors who are slashing prices and selling on price rather than quality.

We focused on three areas of quality:

? Water purity ? we used a steam distillation/ozonation process that guaranteed 99.9% pure water that tasted delicious.

? Label Design Quality ? We used an in house professional designer to guarantee label design quality.

? Label Print Quality ? We used laminated label stock that was extremely durable and water proof and used digital or flexo printing technology to guarantee quality.

Customer service was particularly important as we established a reputation for delivering on time and correctly. If mistakes occurred, and they did, we adopted a no questions asked guarantee. We established a reputation as a reliable vendor for our customers.

The business became a successful mainstay of our business but only because we developed a planned, business development process that we reviewed constantly and made changes that the market required.
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About Author
Both Jon Stout & Marcus Stout are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.

Jon Stout has sinced written about articles on various topics from Types of Cancer, Affiliate Programs and Marketing. . Jon Stout's top article generates over 14800 views. to your Favourites.

Marcus Stout has sinced written about articles on various topics from Food and Drink, Vitamins and Types of Cancer. Marcus Stout is President of Element H2O. For more information about ,. Marcus Stout's top article generates over 49500 views. to your Favourites.
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