PESTEL ANALYSIS

The key macro-level influences on the bottled drinking water market are:

Political
o Non-alcoholic beverages fall within the food category under the FDA. The
government plays a role within the operation of manufacturing these products in terms of
regulations. There are potential fines set by the government on companies if they do not
meet a standard of laws
o The key factor is government spending cuts and the extent to which these affects the
economy and, therefore, consumer confidence as well as funding and grants available to
start-ups.
Changes in laws and regulations, including changes in accounting standards,taxation
requirements, (including tax rate changes, new tax laws and revised taxlaw interpretations) and
environmental laws in domestic or foreign jurisdictions.

Political conditions, especially in international markets, including civil unrest,

government changes and restrictions on the ability to transfer capital across borders

Changes in government affect the sector. While one government administration supports
a product, another government administration could support another one and this
sometimes end up with profitability problems.

Economic

The direct link between consumer confidence and sales of discretionary purchases like
bottled water means that the economic outlook is a key influence on the demand and
price paid for bottled water.

The sector has a competitive environment and can be easily affected from the price
changes, interest rates, and income distribution. Since the product is not very profitable
any little price or currency change would affect the sector. Because the machines are
imported currency plays an important role.
Also the employee expenses that are rising every year damages the budget. Every year a
rise in the expense means ten workers for one more so theoretically the company employs
one worker for free.
Inflation rate and the fluctuations affect the sector as it has an impact on any area.

 Social

There is a regular increase in the population in Bangladesh. Every person means someone
to drink a mineral water. Because the target market is anyone , so the all consumers are
the target segment in Mineral Water Market.
Also as education level has been increasing in the country and people tend to live a
healthier life people began to know about some little things about Mineral Water because
it provides a healthier life.
Population distribution and income level affects the proportion of Bottled Water drinkers
in the country.

Technological

It is required to follow the technology closely. Because the observation of mineral water
regarding the ingredients and the mineral proportion is important.
Uses of technology in recycling systems to recycle the glass bottled products and make
them new green bottles for consumers to drink.
Packaging material developments and also developments in areas such as inventory
tracking using RFID tags (Radio Frequency Identification) may come to exert and
influence

Environmental

Environmental analysis examines the local, national and world environmental issues.
According to the data of the Coca Cola Company; all of the facilities are strictly
monitored according to the environmental laws imposed by the government
This is and will continue to be an area of influence on the bottled water market as
evidenced by the responses of producers to issues such as food miles and packaging
waste.

Legal

There have been recent changes in the law which mentions the level of chemicals allowed
in the bottled water. The impact of this legislation is higher as the non-compliant
organization would be forced to shut shop.
Legal aspect focuses on the effect of the national and world legislation The
production of bottled water is well regulated and given the poor environmental
credentials there may well be future changes.