Fiji Water Company Analysis

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Table of Contents

Ethical and socially responsible marketing
Factors that contributed to the success of FIJI Water
Green washing and how can it be identified
Recommendations to FIJI Water Company and conclusion
References

Corporate Social Responsibility (CSR) has dominated the business milieu in the last couple of years. This is supported by the fact that almost all the Fortune 500 companies have well-spelt CSR initiatives while an increasing number of companies are taking up the challenge. While CSR is denounced as a means of corporate show-off, many companies are apparently unwilling on the disclosure of their CSR endeavors.

While some companies choose to follow a public proclamation of their CSR involvement via advertisements, a good deal of others opt to depend on an inward reporting or even website information meant for NGOS or distinct stakeholder parties (Locker & Kienzler, 2009).

The differences in the kind of approach a company adopts in the handling of its CSR communication is due to an apparent sensitivity of the CSR topic, as well as company ambiguity and inadequate knowledge about its risks and potential (Ihlen, et al., 2009).

The weighty question arises on what makes CSR communication such a sensitive issue, despite the increasing interest in corporate conduct that can be observed among the public.

Corporate Social Responsibility has been and is a controversial issue. It is considered a corporate fad introduced in the 1990s to act as a cosmetic treatment. The overall recognition of its importance today and in the future has reduced the number of its critic (Ihlen, et al., 2009).

The debate now has shifted to how CSR is backbone remedy in business strategy. Despite a trend, of increased CSR practices, a concise strategy for its successful implementation has not yet been established. This is attributed to the complexity of the matter owing to the myriad of options, as well as a multifaceted implementation scheme.

In fact, activities on CSR entail a wide range of issues linked to the society, corporate governance, diversity, employee relations, environment, human rights, as well as product and controversial business issues.

While some firms target the CSR complexity through a wide range of initiatives, a narrow definition of a cause is also beneficial in order to reap from the initiatives in terms of differentiation as a competitive advantage (Ihlen, et al., 2009).

There are many reasons as to why companies engage in CSR. One of the main reasons is that, in many of the new venues to open to multinational corporations, the need for social and economic improvement is immense and demanding.

A company that fails to take up the challenge and act in response to those needs is prone to the resentment of the host country or society, with a repercussion that will prove detrimental to the firm. In addition, the conservative, corporate philanthropy has not been as useful as expected.

Many companies give much of their revenue away for appropriate charitable causes. These funds are, more often, not focused and only respond to the desires of executives and employees (Locker & Kienzler, 2009).

Such moves may be market oriented, and a gesture of strong will, but it is adequate to depict sufficient social responsibility. Another reason why companies are pro-CSR is that, domestically and globally, CSR had proved to be legitimate business.

There is an increasing recognition that ameliorating the social and economic statuses of underdeveloped countries can attract potential consumer market in those countries, hence, be beneficial to multinational companies.

As such, appropriate social responsibility is an essential contributor to the license of operating and growing in business. Good CSR is now been viewed as a good stand-in fro overall management competency, providing an insight for investors on how well risks and governance issues are managed (Ihlen, et al., 2009).

Ethical and socially responsible marketing

Corporate Social Responsibility may be viewed as a commitment to ameliorate community well-being via discretionary business practices and contributions of corporate resources. This commitment leads to enhanced company and brand image, as well as ease in attracting and retaining employees.

In addition, it results to an increased market share and low operating costs, not to mention the ease of attracting investors as mentioned earlier(Locker & Kienzler, 2009). A socially responsible company will be concerned about its customers, employees, suppliers, the local community, the society, and the environment.

As such, the concept of CSR can be viewed as an approach by a company’s activities to recognize that its endeavors influence the society, and that development in the society, consequently supports the company to pursue its business objectives successfully.

It is also an approach by which a company actively manages the economic, social, environmental, and human rights. This approach emanates from the principles of sustainable development and exemplary corporate governance.

Marketers ought to be aware of the ethical standards and acceptable behavior that exists in a given society. This awareness implies that marketers have to recognize the perceptions of three stakeholders: the company, the industry and society. Given that these three groups have varied needs and wants, there is a likelihood of ethical conflicts (Ihlen, et al., 2009).

Ethical dilemmas facing marketing experts today can be categorized into three groups namely tobacco and alcohol promoting, consumer privacy, and green marketing. Owing to these dilemmas, there has been a need for ethical marketing guide. This guide helps to identify suitable practices, promote internal control, shun perplexity and ease a base for discussions.

When marketers deviate from accepted standards, the exchange process can break down, leading to customer discontentment, lack of confidence and lawsuits.

Ethical social responsibility entails incorporation of principles and standards that define acceptable marketing conduct as determined by various stakeholders mentioned above (Locker & Kienzler, 2009).

It includes the identification of a problem, situation, or opportunity that requires a company to choose from among several actions that ought to be evaluated as wrong, ethical or unethical.

Regardless of the reasons behind specific ethical issues, marketers must be able to identify these issues and decide how to solve them. Doing so requires familiarity with the many types of ethical issues that may arise in marketing.

Marketing ethical issues are issue related to product, promotion, price, and distribution. The four are commonly known as the marketing mix. Under product issues, an ethical issue arises due to a number of reasons.

To begin with, some marketers fail to reveal the risks associated with a product. This is because they fear that if they do so, the product may not be well received by the consumers, hence leading to low profits. Another product issue is that marketers fail to disclose information concerning a product’s function, value or use.

This may occasion a situation whereby a customer buys a particular product for a wrong cause (Ihlen, et al., 2009). Lastly, under ethical issues in product, marketers may fail to disclose information on changes in the nature, quality, or size of a product.

Under distribution issues, marketers may not live up to the rights and responsibilities related to specific intermediary roles, manipulate product availability, or use coercion to force other intermediaries to behave in a particular way.

In the case of promotion, marketers may be engaged in false or misleading advertising, use manipulative or deceptive sales, as well as an offer or accept bribes in personal selling scenarios. Lastly, in pricing, marketers may indulge in price fixing, predatory pricing, or fail to reveal the complete price of a commodity.

Factors that contributed to the success of FIJI Water

The preceding pages have discussed on the concept of Corporate Social Responsibility, as well as ethical and socially responsible market. In the discussion that follows, this essay examines how these concepts have been applied by Fiji Water to realize its success.

The bottled company Fiji is facing many recent strategic issues. The economic recession altered the pattern of consumer purchasing. Fiji water was adversely affected environmental issues like waste management and pollution.

Further, bottled water companies are trying to shift packaging and shipping to more environmentally friendly materials and styles, since customers favor ecologically sustainable products (McMaster & Nowak, 2009). In addition, since consumers focus on obtaining healthier lifestyles and diets, they are now beginning to inquire the security and limpidness of the water offered contained in bottles.

Fiji Water has been on the receiving end of all these issues. Nevertheless, it has remained successful amidst a sea of challenges. This can be owed to a number of strategic options coupled with marketing tactics that have stimulated growth fro the company (McMaster & Nowak, 2009).

Fiji Water LLC was founded in 1993 in Colorado. Its first products were sold to the world in 1996. Its water comes from the artesian area of the Fiji Island. The water is packaged, shipped and sold to distributors across the globe in different sizes. It is based in Los Angeles.

Fiji’s water is of high quality, and thirsty quenching. The company has created a brand image of tropical, exotic water through its casing of palm tree images. The brand has high brand consciousness in pop culture achieved from extensive marketing and advertisement promotions. For instance, in 2008, its advertisement budget increased from $6 million to a staggering $10 million (McMaster & Nowak, 2009).

Fiji water competes with all the other beverages that consumers choose from during beverage buying. However, in particular, Fiji water competes indirectly with coca-coal and Pepsi brands, Acquafina and Dasani. Directly, Fiji competes with other small bottled water companies like Evian.

The success of Fiji water can be attributed to number of reasons. To begin with, product placements have been extremely instrumental. This has been achieved through placing its products in Hollywood blockbuster movies and famous TV series in the US.

These include the likes of Sex in the City and Brothers and Sisters. The placements have been extended into articles in well-known newspapers (McMaster & Nowak, 2009).

By product placement, Fiji Water has managed to gain powerful endorsements from icons such as Cameron Diaz, Venus Williams, who consider Fiji Water as their preferred beverage. Even the U.S. President, Barrack Obama, is believed to have

been seen drinking Fiji Water. The concerted efforts of product placements and celebrity endorsements have aided Fiji Water become the preferred beverage of the elite consumers, as well as the world wide fashion icon linked to the most sensational lifestyles.

Another factor that led to the success of Fiji Water is the enhancement of its health and caring image through Corporate Social Responsibility (CSR). This was realized by continual sponsorships awarded to meritorious social causes such as AIDS, breast cancer, sports and culinary occasions.

These led to a constant level of publicity. Apart from these strategies, the continual delivery of quality products has been instrumental in making Fiji Water a preferred brand (McMaster & Nowak, 2009).

This is because Fiji water is considered the only water that emanates from an artesian source. Its bottling is also tailor-made to preserve the purity and quality of the water because it is situated directly above the aquifer (Locker & Kienzler, 2009).

Green washing and how can it be identified

In the previous section, this essay discussed the reasons that led to the success of Fiji Water. However, this does not imply that the company does not have its fair share of woes and worries. The latest to hit the headlines has been its green washing accusations.

The remaining part of this essay will discuss the phenomenon of green washing, how it can be identified, as well as proving whether Fiji Water has been involved in green washing. The last section will include recommendations to the company in order to solve the predicament it is facing if any.

In the early 1990s, there was a rise in products defying touting environmental claims. The green fever in the 1990s disappeared with the same pace it appeared (Locker & Kienzler, 2009). However, today, companies are again going back to the value of promoting their products or, in some cases, themselves, as being green in order to attract an increasing environmental responsiveness.

In doing so, companies often make claims that sound environmentally conscious, but in the real sense, they are vague, and sometimes untrue.

Consequently, green washing has become a household term in the market. Green washing can be termed as the propagation of false or incomplete information by a company to present environmentally responsible public picture (McMaster & Nowak, 2009).

The high number of vague and misleading environmental claims made consumers to suspect corporate honesty. The concern over green washing not only misleads consumers, but also make companies loyal to their environmental mission lose their competitive edge.

In addition, this disinformation saturates the market such that the idea of greenness loses its credibility to the customer. Consumers may also become confused concerning which products are genuinely environmental friendly.

Owing to this skepticism, genuine attempts by companies to become environmentally friendly will lose their meaning hurting customers and companies. Fiji Water is a perfect example of what green washing entails (Locker & Kienzler, 2009).

As mentioned earlier, its water is taken from an aquifer in Fiji and then bottled in a factory run by diesel in plastics shipped from China.

Despite the fact that shipping by the ocean is somehow environmental friendly, it admits that it claim of a negative-carbon brand cannot be realized until almost twenty years in the future. This implies that the company is aware that the green claims it makes have no ground and hence is involved in green washing (McMaster & Nowak, 2009).

Recommendations to FIJI Water Company and conclusion

In order for Fiji Water to stop solve its current green washing predicament, there are a number of recommendations that it can find useful. To begin with, it needs to communicate measurable gains of precise, particular initiatives instead of blanket statements that try to praise the company.

It also needs to work with the industry to see how the latter can ameliorate practices and standards to lessen injurious effects. In addition, Fiji Water should engage with stakeholders in order to understand the principal concerns that should be tackled in their opinion, and know the variety of issues that a company faces in executing environmental initiatives.

In addition, the company should be concise on the environmental benefits of its product, but not inferring to the entire company as being green, yet its product does not support this argument.

Further, Fiji Water should continue in their environmental performance, be humble in their message, and use metrics in order to clarify its environmental impact via comparisons with alternatives. In conclusion, the success or failure of companies may be tied to the way they develop and communicate their participation in environmental conservation.

References

Ihlen, O., Barlett, J. & May, S. (2009). Handbook of communication and corporate social responsibility. New York: John Wiley & Sons.

Locker, O. K., & Kienzler, D. S. (2009). Business administrative communication. New York: Mc Graw Hill.

McMaster, J., & Nowak, J. (2009). Fiji water and corporate social responsibility. Web.

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