Marketing Lesson from the Bottled Water Industry

5 Marketing Lessons from the Bottled Water Industry

by Kathryn Hawkins on October 3, 2011

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Who would pay more than a 4,000-percent markup to buy a product that’s available practically for free nearly everywhere in the United States? Fans of bottled water, that’s who.

The domestic bottled water industry today is worth more than $15 billion annually — despite the fact that, according to the Natural Resources Defense Council, bottled water isn’t likely to be any safer or cleaner than the EPA-regulated municipal tap water that’s available in 90 percent of American households. In fact, about 25 percent of bottled water is municipal tap water — “sometimes further treated, sometimes not.”

Why are so many people willing to buy a product that’s readily available in their own homes? Smart marketing. Here’s a look at the bottled water industry’s sales strategies.

1. Focus on image. Most bottled water labels depict mountains and glaciers, which make consumers assume that the water comes directly from a mountain stream. This isn’t necessarily true. For example, Aquafina’s logo features white-tipped mountains, but the product is merely treated tap water. It isn’t nice to lie to your customers, but you do want to promote the image you’re selling.

2. Turn consumers into connoisseurs. Bottled water companies encourage consumers to focus on the flavor of their water. Fiji Water “has a smooth, silky mouthfeel,” company executive Thomas Mooney told the Washington Post. If you don’t ask to be perceived as a quality product, you won’t be. However, when people don’t know what they’re drinking, tap water often comes out ahead. In one blind tasting, London’s tap water ranked third among 24 water products; in another, at a high school in Atlantic City, more than a third of students chose tap water over two bottled options.

3. By positioning your product as a sign of wealth, it becomes desirable to people who are striving to reach the upper class. Back in the 1970s, ordering a...