Q1: PET bottled water category is booming. Many companies have entered the market with their value proposition to cater the emerging needs of consumer. Below mentioned grid consolidates pertinent details for evaluating category from strategic lens. As a sales and channel consultant, answer following queries:

A. What factors are considered in setting trade margins?

B. Give your analytical perspective on PET bottled water category by evaluating below mentioned

details.

C. As Dasani is relatively new entrant in category, why margin stands at 5% and what will be their

strategy for numeric coverage?

D. Configuration of Nestle 500ml is 12 bottles per carton. What impact will be created on KPIs if

configuration is revised as 18 bottles per carton?

PRICE STRUCTURE ANALYSIS Nestle Water SKUs Brand Configuration TP/Unit TP/PET MRP/Unit MRP/PET Margin/Unit Margin/PET Retail Unit/PET (Rs.) (Rs.) (Rs.) (Rs.) (Rs.) (Rs.) Margin Pure Life 12 27.17 326 30 360 2.83 34 10.4% 500ml AQUAFINA 12 26.83 322 30 360 3.17 38 11.8% dasani 12 28.5 342 30 360 1.50 18 5.3% Pure Life 6 49.67 298 55 330 5.33 32 10.7% 1.5 Liters AQUAFINA 6 44.00 264 50 300 6.00 36 13.6% dasani 6 52.16 313 55 330 2.84 17 5.4%