Bottled water is a hot industry with sales of $10.9 billion in the United States

Question

Bottled water is a hot industry with sales of $10.9 billion in the United States. Big players in this industry include Nestle, PepsiCo, and Coca-Cola. Nestle is the market leader with four brands among the top 10 leading brands. Nestle's Pure Life brand was the top-selling brand with sales of $1.28 billion, but the company's other brands make up an additional $1.21billion. Nestle saw an opportunity in this market and launched a new brand called Resource, targeted to affluent women. Resource is fortified with electrolytes and is promoted as "more than hydration, it's total electrolytenment." Nestle is attempting to take market share away from Glaceau's Vitaminwater and Smartwater. If Resource attains just 3 percent market share, it will be among the top 10 selling brands. Calculate Nestle's Pure Life and the company's overall market share in the bottled water industry.

The Nestle's Pure Life market share is:

The Nestle's overall market share is:

Explanation / Answer

Total size of bottled water industry = $10.9 billion

Nestle's pure life brand sales = $1.28 billion

Nestle's other brand sales = $1.21 billion

Hence, Nestle's total sale of bottled water = Nestle's pure life brand sales + Nestle's other brand sales

= 1.28 + 1.21

= $2.49 billion

Hence, Nestle's pure life market share = Nestle's pure life brand sales/Total size of bottled water industry

= 1.28/10.9

= 11.74%

Hence, Nestle's overall market share = Nestle's total sale of bottled wate /Total size of bottled water industry

= 2.49/10.9

= 22.84%

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