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1. Refer to Appendix 2, Marketing by the Numbers, and calculate Nestlé's Pure Life and the company's overall market share in the bottled water industry.
2. How much revenue does one market share point represent in this industry? Assuming total market sales remain the same, what sales must Resource attain to be among the top 10 selling brands?
Bottled water is a hot industry with sales of $11.8 billion in the United States. Big players in this industry include Nestlé, PepsiCo, and Coca-Cola. Nestlé is the market leader with four brands among the top 10 leading brands. Nestlé's Pure Life brand was the top-selling brand with sales of $1.18 billion, but the company's other brands make up an additional $1.6 billion, giving the company total overall sales of almost $3 billion. Nestlé 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, its total electrolytenment." Nestlé is attempting to take market share away from Glacéau's Vitamin water and Smart water. If Resource attains just 3 percent market share, it will be among the top 10 selling brands.
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