Smarter Pricing: How to capture more value in your market

Is water a commodity?

Water is not a commodity. Bottled water brands have always faced low-priced competition – namely tap water – yet have seen remarkable growth in the past decade by differentiation and a focus on benefits. According to Mark Sweney (2004), writing in Marketing Magazine, private label brands of bottled water from supermarkets grew by 19 percent in the UK market in 2003. Yet Danone Waters launched Volvic Revive, a mineral water-based sports drink, and sales grew by 29 percent in 2003.

Other major brands focused on different qualities. Evian’s Nomad bottle, aimed at outdoor types, carries a belt clip, while Lakeland Willows’ Salacin water contains naturally occurring aspirin to combat heart disease. If they offer genuine value ...