1. Why has Evian's market share in the United States continually declined since the emergence of the cola giants' bottled water brands in the late 1990s? Evian's market share in the United States has continuously declined since the emergence of the cola giants' bottled water brands because Evian did not foresee competition from the cola giants. like Coca-Cola in the bottle industry. Evian also failed to realize that selling bottled water in the United States is completely different from selling bottled water in Europe. In Europe, consumers are more aware of the differences between purified spring water and glacial spring water, prefer glacial spring water, and are willing to pay more for glacial spring water brands like Evian. In the United States, consumers are indifferent to the types of bottled water and make purchasing decisions based solely on price. Evian's average cost per case is approximately 80% higher than Aquafina and Dasani due to the additional handling and transportation costs of bottling water from the glacial spring in the French Alps and Swiss from Evian. Because purified water is less expensive than imported glacial spring water, American consumers prefer purified water brands like Aquafina and Dasani.2. In evaluating Danone's strategy for gaining market share in the United States, present the positives and negatives of remaining a single entity and "going it alone." Positives of remaining a single entity: • If Danone continues to operate the Evian brand as a single entity, Danone will have to accept Evian water as a niche product rather than a leading product. However, if Danone highlights Evian's original qualities and positions the brand as a premium premium beverage with a positive edge through marketing and advertising, Evian may be able to provide Danone with a higher profit , even with lower sales volumes. the entity will preserve the national, historical and family pride of the company. Negative points for remaining a single entity: • As a single entity, Danone will have to continue to fully cover the marketing, distribution and brand management costs for Evian that Coca-Cola offered to provide in exchange for a 51% stake in the company.• As a niche product, Danone would focus its marketing efforts on the exclusive group of American consumers willing to pay more for glacial spring water.• To avoid exploiting Evian as a niche product, Danone might choose to find a local spring water source in the United States in order to reduce costs and compete with Aquafina and Dasani. However, Danone's production and distribution activity should be strengthened by acquisitions..