Interim Project: Bottled Water Price Analysis and Government Policies

This report analyzes the factors influencing the price of bottled water in the UK, focusing on supply and demand dynamics, cost of production, consumer behavior, and the impact of government regulations. It examines how these factors interact to determine market prices, with a specific focus on The Big Bottle Co. The report also explores the economic policies that the UK government can use to reduce the use of single-use plastics, including legislation and taxation. The analysis considers the product life cycle, technological advancements, and the influence of competing firms. The report emphasizes the importance of understanding market dynamics and government interventions to make informed business decisions and promote sustainable practices. It highlights how government policies and consumer preferences shape the market for bottled water and the need for businesses to adapt to changing economic and environmental conditions.

Interim project

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK .............................................................................................................................................1
1) Supply and demand analysis identify which you believe to be the main factors in
determining the price of bottled water in the UK. .....................................................................1
2) The main economic policies that the government can use to reduce the use of 'single use
plastic' in the U.K........................................................................................................................4
CONCLUSION .............................................................................................................................5
REFERENCES ..............................................................................................................................6

INTRODUCTION
Demand and supply can be considered as the most essential term of macroeconomics
which plays a vast role in analysing the market situation. In the field of microeconomics, supply
and demand is an economic model of price determination in a market place. An effective
understanding about market and its terms helps in maximising the potential and minimising the
risk factor for the people (Christopher, 2016). Demand encompasses the quantity of a particular
product or service which is desired by clients and customers. On the other side supply refers how
much a market can offer at market place. The both supply and demand consist as the key activity
of economic. Both the elements has s huge influence on each other and affects the prices of
clients products and services within an economy. The Big Bottle Co is a chosen company for this
particular report , it is established in UK and deals in pure and distilled water. The present report
is based on applying supply and demand analysis in respect to identifying the factors that has a
huge influence on the price of bottled water in UK. In this the major policies that are adopted by
government as to reduce the use of single use plastic in the United kingdom will also be
discussed in appropriate manner.
TASK
1) Supply and demand analysis identify which you believe to be the main factors in determining
the price of bottled water in the UK.
Demand and supply can be described as the key element of economic and plays vast role
in analysing the growth and development of economy. In today's Modern and competitive
business environment growth and profitability is never a guarantee. Technological and scientific
advancement shorten the life cycle of products and services, business model change and new
rivals appear from outside of the firm. Water is considered as the fundamental need of people
which is highly consumed by people as to maintaining their health. The bottled water production
firm has thrived on nationwide trend of increasing health consciousness as clients healthy
hydration habits have buoyed demand for bottled water, at the expense of soft drink (Loucks and
Van Beek, 2017). The factor of demand and supply are lies on each other and significantly works
together as demand of a product increase the supply of product at market place. Water can be
described as the element of fulfilling the core need of people as it is the basic need of an
individual and it is required for people to live in a safe and healthy environment so the major
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focused area for people in water, so the government of UK is widely concern on producing
bottled water in respect to satisfying the needs and wants of people within an economy. As a
reputed bottled water company Big Bottle Co. is concern on applying various technological
aspects as to satisfying the demand and need of market in effective manner. The demand and
supply are interlinked with each other as they lies on each other (Keller, Parameswaran and
Jacob, 2011). In UK people are very much concern about their health and safety so they prefer
bottled water rather than tap water, so the consumption rate of bottled water is high in UK. There
are various factors that determine the fixation of price in which some essential elements are
described as under:
Cost of production: This consist to be the most essential factor that has a huge influence on
fixation of price. Cost of production is determined as the major element of price, organisations
are concern on reducing the producing cost in respect to developing the profitability of firm.
Companies are selling the products and services at less than the cost of production. Thus before
fixing the price it is essential to compile data and information relating to the cost of production.
As a famous bottled company Big Bottle Co. is concern on reducing the cost of production in
respect to developing the sales and profitability of firm.
Demand for product: This is also an another essential aspect of economic which helps in
analysing the growth and development of firm. An intensive study for a product or services in
the market needs to be undertaken by firm before fixing the price of goods. In the situation of
high demand the price can be fixed at higher level. Water is the fundamental need of of people so
the demand is high at market place and organisations are fixing high price in respect to attaining
high growth and profit at market place. As the Big Bottle Co is having a good reputation at
market place so the demand of bottled water is high and company change their price as per the
change arises in the demand and supply of products.
Prices of Competing Firms: In the modern market competitive is so high at market place and
organisations are widely concern on attaining higher competitive edge through offering variety
of goods and services to their significant buyers. It is essential to take into consideration prices of
the goods of the competing organisations prior to fixing the price (Zikmund, Babin, Carr and
Griffin, 2013). As a product of primary need there are lots of alternative available at market
place so Big Bottle Co is focused on maintaining their sales through applying various measures
at work place and develop their growth and success at market place. Company can increasing
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their prices through analysing the pricing strategy of rivals at market price. This create value in
attaining high growth and success at market place.
Quality of product: This is an essential component which has a huge influence on the pricing of
product as the quality of product is high than company charge high price for their products and
services. Quality conjugated with reasonable prices, offers positive economic growth for the
organisation developing a high quality products or service. It is important for an organisation to
maintain the quality of products in respect to maintaining the demand of product at market place.
There are lots of alternative available for a single product so it is important for an organisation to
maintain the quality of product in respect to satisfying the needs and wants of people (Monczka
and et. al., 2015). If customers are not feeling satisfied that they can switch to the other brand or
firm as to fulfilling their basic desires and needs.
Technology: This is also an essential element for attaining higher growth and success.
Innovative market emergence is a biggest phenomenon that innovation creation. Tools and
technologies has a huge influence on demand and supply of firm. Intact supply curves are drawn
assuming through a given technology. Over time, the availability of technology may change, so
if good manufacturing tools and technique are followed then supply curve will always shift
towards higher production. As a popular water company Big Bottle Co. is concern on adopting
various suitable tools and technologies in respect developing the performance and production of
firm at market place. Company is using innovative technologies as to producing more effective
distilled water in respect to keeping the health factor into proper consideration.
Government regulation: There are various types of factors which influence the price of the
bottled water which is provided to the people. Government direct the manufacturer to bottled
water considering health of the people living in the society. Government impose different types
of laws by which it can control the price of the bottled water (Voigt and et. al., 2011S). The
manufacturer have to consider the price of the different types laws which influence the price of
the bottled water. The main objectives of the government is to provide bottled water at
affordable price. These officials of the government monitor the price of bottled water in proper
manner.
Product life cycle - The life cycle of products is a major concern in business all over the world.
In past years, the product life cycle is one of the major business concern that has an influence on
demand and supply of products. Basically, product life cycle involves different aspects, i.e.
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research and development, marketing and supply chain management. Product life cycle has four
major aspects, such as – introduction, growth, maturity and decline stages. It is viewed the life of
specific products from the marketing perspective is based upon their demand and supply at
marketplace. In addition, buyers' demand is too much Customer volatile whereas product life-
cycle is diminution dramatically
Tax policies – Due to globalisation, there is raised higher market competition which can affect
the growth and survival of business associations. Government of different nations has acquired
several taxation policies and legislation so as to driven up their GDP rate. Higher interest and tax
rates plays a crucial role in import and export activities of the company (Kesidou and Demirel,
2012). For example – due to high taxation rates affect consumer behaviour and decrease the
demand of products and services. In UK, mostly people want bottle water as if government raise
their tax rates then people will not buy such products.
2) The main economic policies that the government can use to reduce the use of 'single use
plastic' in the U.K.
Policies and procedures plays effective role in growth and development of economy. This
helps in implementing all operations in appropriate manner. In implementing rules and policies
government or its bodies plays effective role and these are needs to be followed by people and
industry within the economy. UK implement different types of strategies in order to cut the use
of the plastics through whole world. This leads to accomplish different types of policies which
encourage the people to not to use the plastics because it is not beneficial for health. There are
different types of plan which are prepare by the organisation in order to accomplish different
types of the organisation in the proper manner (trengers and Maller, 2012). They conduct
different types of acknowledgement of the program in order to not to use the plastics in proper
manner. Government made different types of plastic waste in order to explain the rules and
regulation in order to adopt new way to carry goods from one place to another place by the
people. UK government implement different types of strategies in order to not to use the plastic
because it give bad impact to the customer and also accomplish different types of which define
that use of plastic is injurious to health. Government implement anti plastic rhetoric instead of
the normal plastic which are not dispose in the soil. Government implement different types of
laws which influence the use of plastics. The management of organisation leads to attain the
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goals and objectives of the organisation it leads to attain the effectiveness of the organisation.
There are different economic policies that is designed by government of United Kingdom so
that reduction in the usage of 'single use plastic' could be done properly. Government has made
plastic waste policies which are helpful in reducing the wastage of plastic materials and poly
bags. In UK, they create 2.26 million tons of plastic packaging waste in a year which are around
to recycle it. Single use plastics wastage is scourge to their environment. In this country they
produce million of tonnes wastage which are recycle in a year. So government made various
policies which ban the use of plastic that will help in reducing the harmful gas while burning this
wastage of plastic bags. Some of the key strategies or contribution of legal bodies of UK are
presented below :
 They have framed many legislations in context to avoid the utilisation of plastic
materials. For example, according to the Single Use Carrier Bags Charges (England)
Order 2015, each and every big retailers or companies will be charged of minimum of 5p
for all newer single-use carrier bags, if they are founded guilty (Demirel and Kesidou,
2011).
 They have also promoted recycling related concepts in order to avoid negative influences
of same things.
Ban of plastics bags: The UK government passed the circular to ban on the plastic bags
throughout the whole country. For this government regulate its official to monitor the use of
plastics by the people.
Close those industries which manufacture plastics bag: Government direct those industries
which manufacture plastic bags . They are supposed to stop manufacturing of plastic bags
instead of the plastic bags they can manufacture those products which are environment friendly
bags which can easily dispose by the soil.
 Proposal used by the UK government: Government implement different types of
strategies in order to stops the use of plastics bags (Xie and et. al., 2015). There are
various types of proposals which are used by the organisation in order to ban use of
plastics. Instead of the use of different types of plastics bags it is used by the organisation
it leads to give influence to reduce the use of plastics by the people .
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 Use of Long life bags policies: Instead of using plastics government discover long life
bag which is kind of a types of disposable bag used by the various types of shopkeepers
and the people living in the society.
 Impose heavy fine to use of plastics: this circular is passed by government those
organisation or individuals who uses plastics and found guilty then the officials of the
government impose heavy fine on that particular persons or organisation (Mekhilef,
Saidur and Safari, 2011).
 Adaptation of reusable bags : The adaptation of this policy implemented by the
government to reduce the use of plastics it encourage the people to use reusable bags
which are used by the people of UK. The quality of this bags is it is disposable and it is
environment friendly and it is provided at affordable price.
The vision of the UK government is to within ten years of plan. Government put its effort in
order to make UK plastic free and also implement different types of option which are used by the
organisation in proper manner. Government used various type of strategies in order to abolish
use of plastics from whole country.
CONCLUSION
As per the above mentioned report it has been concluded that supply and demand can be
evaluated as the most essential term of analysing the actual market condition of an organisation.
In the modern world organisations are concern on providing satisfactory products and services to
their significant buyers as to attaining competitive edge at market place. In UK the consumption
of bottled water is high because people prefer mineral and distilled water in respect to
maintaining their good health condition. Government of UK apply various policies and
procedure as to reducing the use of plastic in respect to creating a good environment for people.
It is the major responsibility of government or its higher authority to maintain environment safe
and secure in nature as to ensuring people about their safety so government is concern on
creating various laws and policies which are needs to be followed by people or industry as to
maintaining the good condition of country.
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REFERENCES
Books and Journals
Christopher, M., 2016. Logistics & supply chain management. Pearson UK.
Loucks, D.P. and Van Beek, E., 2017. Water resource systems planning and management: An
introduction to methods, models, and applications. Springer.
Keller, K. L., Parameswaran, M. G. and Jacob, I., 2011. Strategic brand management: Building,
measuring, and managing brand equity. Pearson Education India.
Zikmund, W. G., Babin, B.J., Carr, J.C. and Griffin, M., 2013. Business research methods.
Cengage Learning.
Monczka, R. M., and et. al., 2015. Purchasing and supply chain management. Cengage
Learning.
Voigt, C., and et. al., 2011. Health tourism in Australia: Supply, demand and opportunities.
Strengers, Y. and Maller, C., 2012. Materialising energy and water resources in everyday
practices: Insights for securing supply systems. Global Environmental Change. 22(3).
pp.754-763.
Xie, B., and et. al., 2015. Consumer perceptions and attitudes of organic food products in Eastern
China. British Food Journal. 117(3). pp.1105-1121.
Mekhilef, S., Saidur, R. and Safari, A., 2011. A review on solar energy use in industries.
Renewable and Sustainable Energy Reviews. 15(4). pp.1777-1790.
Demirel, P. and Kesidou, E., 2011. Stimulating different types of eco-innovation in the UK:
Government policies and firm motivations. Ecological Economics. 70(8). pp.1546-
1557.
Kesidou, E. and Demirel, P., 2012. On the drivers of eco-innovations: Empirical evidence from
the UK. Research Policy. 41(5). pp.862-870.
Online
Important Factors that Determine the Fixation of Price. 2018 [Online]. Available through:
<http://www.yourarticlelibrary.com/production/7-important-factors-that-determine-the-
fixation-of-price/1093>.
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