Interview- Distributors
The Keystone Group- Luke Butler, Chief Marketing Manager (interview
undertaken Tues 16th August 2011)
Seven 11- Anonymous, 7eleven store, Chatswood West (interview undertaken
Wed 17th August 2011)
Cassie: The social fashions- Do you notice particular fashion trends in
regards to customers purchasing bottled water?
Keystone:
As we have beverage contracts, we only stock one brand of water- Mt Franklinboth still and sparkling. These items are stocked in all our venues, including
- Cargo Bar
- Loft
- Bungalow 8
- All the Winery/ Gazebo properties
- The Sugarmill and Kit and Kaboodle
- The Australian Hotel
- The Glenmore.
Particularly in the bar and club venues, customers are more likely purchase
alcoholic beverages over bottled water. The restaurant venues, and bars that are
open during the day, sell quite a few bottles of sparkling water- I guess they feel
like it’s the ‘classier’ version to have with lunch (as a non alcoholic alternative). In
regards to Still bottled water- customers are more likely to chose the ‘free’ version
of tap water- which is chilled, served over ice, with a slice of lemon or lime.
Seven/11
We stock all sorts of bottled water. The most popular would have to be Mt Franklin.
I’m not quite sure why… brand loyalty, image etc. It is also the brand that we have
on sale at the moment- 2 for $4.
Cassie: Why do you think people go for the sale items?
Seven/11:
Umm… I guess it could lean towards todays social trends: Saving!
- Property prices increasing
- People becoming more interested in travelling
- Generally, the cost of living increasing.
Cassie: being environmentally aware is becoming more of a social trend. Do
you think if buying a bottle of water meant helping the environment people
would chose that option over brand loyalty or value?
Keystone:
It doesn’t make too much of a difference in our venues as Mt Franklin has the
‘monopoly’. It is the only choice, so if someone wants bottled water, they have no
choice. If it were in a venue where that choice to be environmentally sustainable
was an option, then yes, I think it would be popular. People are becoming more and
more environmentally aware- through purchase of organic foods, to vegetarians, to
vegans- it’s all becoming more and more popular.
Seven 11:
That would depend on the individual I guess. I also think that brand loyalty and
value would come into it aswell- they would want to be 100% certain that their
money was going to where they thought it was. They must know that they like the
product also.
Cassie: What are the Legal issues that impact upon bottled water sales?
Keystone:
We have to legally have to supply water wherever you serve alcohol (RSA).
Cassie: If you didn’t have to legally, do you think you would?
Keystone:
Probably not haha we don’t make much money off them
Seven 11:
We have our consumer protection and trade practices laws in regards to prices etcthe same that affect all food and beverage items that we stock. We also have a duty
of care over our customers- we must supply items that are fit for consumption. All
bottles must be checked upon arrival to ensure they are fully in tact and have not
been tampered with.
Cassie: DO you notice any particular demographic trends that purchase
bottled water?
KeystoneIt’s definitely not usually generation Y that purchases bottled water… I would say
predominantly males 30+. We get the gym junkies who come in after a gym session
for lunch or dinner- and chose the healthy option of water instead of soft drink or
alcohol.
Seven/11Young active people- we have several gyms surrounding us, and the shopping
centres are on the other side of the railway line- so we have a very convenient
location. Suite workers drop buy for a morning coffee and often grab a water on
the way. It’s usually those who aren’t concerned about price, and hand over a note
without counting back the change. It’s definitely not the young school kids that
scrape up every cent… they go for soft drinks, donuts and lollies!
Cassie: Do you think that any of the Local/ national/ global economic trends
have impacted on bottled water sales?
Keystone:
Not particularly- I think it’s more of a ‘trendy’ thing to do (the sparkling water)
people like to flash their money (even if they don’t have it) And sparkling water is
seen as being a classy option (in comparison to tap water).
Seven 11:
As I mentioned before, our best selling bottles of water are the sale items- at the
moment Mt Franklin - 2 for $4. Most of our customers are money conscious and
always like to think they’re saving money rather than spending it…
Cassie: Do you think that technological trends have impacted on the
purchasing of bottled water?
Keystone:
Increasing power costs would definitely be affecting the manufacturers of bottled
water (and all beverage products). We see this on our end through inflation. It does
turn some people off when we go to charge them $5 for a bottle of water (which is
more expensive then some of our beers!)
Seven 11:
Yes, with increased technologies, some aspects of the manufacturing and
distribution factors become more efficient- meaning that more bottled water can
be produced for a lower cost (eg not needed as much human labor so cut down on
employment costs). However, with the depletion of resources, the running of such
technologies will increase, and through the distribution channel, this results in us
having to increase our prices (which negatively impacts upon the consumer).
Cassie: Do you think that any issues occurring within the natural
environment have affected the sale of bottled water?
Keystone:
I know I saw that many bottled water companies have been helping out with recent
natural disasters- eg the victims of earthquake in New Zealand, Cyclones across
Queensland, and flooding across Australia. I know that may people would notice
this, and in future purchases will remember that, feeling like their purchase is
making a difference.
Cassie: So do you think that that feeling of making a difference is a great
reason for purchasing bottled water?
Keystone:
Well I wouldn’t go out of my way to purchase a bottle to make me feel good, but if I
was buying one, I would make the decision to buy the one that will be making a
difference.
Seven 11
Not particularly, in the location of our shop, people mostly buy bottled water
because they set out to buy bottled water. I bet you 90% of customers wouldn’t stop
buying it to help the environment.