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Problems at Perrier
Transcript of Problems at Perrier
Perrier the Iconic Brand
Company was founded in 1898 by Louise-Eugene Perrier.
The main product is mineral water.
Steady growth was seen in the company until 1980 when it escalated.
1.2 billion bottles of mineral water, half of which was sold in the US.
Benzene in a bottle = collapse in sales in US.
In 1992 output had halved and the company was close to bankruptcy.
Nestle bought the company, but sales still did not increase and the brand remained unprofitable.
Courtney, Louise & Jayne
Resistance to Change
93% of workers belong to a union
Management claims that changes cannot be made due to the CGT union.
Dumping of the Badoit Rogue bottles.
Causes of Resistance
Collapse of sales could lead to fear of job loss.
Company's plan to cut 15% of their workers solidified this fear.
Placement of competitor's Bandoit Rogue bottles in the staff cafeteria.
Poor communication between management and staff.