Global Water Resources, Inc. (GWRS): Marketing Mix Analysis [11-2024 Updated]

As we dive into the marketing mix of Global Water Resources, Inc. (GWRS) in 2024, it's clear that this company is not just providing essential services but is also committed to sustainability and community engagement. From its innovative water and wastewater solutions to its strategic expansions in Arizona, GWRS is positioning itself as a leader in the regulated water industry. Discover how their product offerings, geographic reach, promotional strategies, and pricing models are shaping the future of water resource management below.

Global Water Resources, Inc. (GWRS) - Marketing Mix: Product

Provides regulated water and wastewater services

Global Water Resources, Inc. (GWRS) offers regulated water services, generating approximately $19.4 million in water service revenue for the nine months ended September 30, 2024, compared to $18.9 million for the same period in 2023. Wastewater and recycled water services brought in $20.1 million in revenue for the same nine-month period, up from $19.0 million in 2023.

Offers recycled water for irrigation and other non-potable uses

The company has been actively promoting its recycled water services, which accounted for approximately $1.1 million in revenue for the nine months ended September 30, 2024. This service is particularly focused on non-potable uses such as irrigation, contributing to sustainable water management practices within its service areas.

Focus on sustainable water resources management

GWRS emphasizes sustainable water resources management, aligning with regulatory requirements and community needs. The company is committed to optimizing water usage and ensuring long-term sustainability, which is reflected in its operational strategies and customer engagement. The recent implementation of a sustainable water surcharge allows the company to recover costs associated with new water resource developments.

Plans to expand service connections through acquisitions

As of September 30, 2024, GWRS had 63,889 active service connections, representing an increase of 4.7% year-over-year. The company aims to further expand its connections through strategic acquisitions, including a recent agreement to acquire seven isolated public water systems from the City of Tucson, expected to close in early 2025 for $8.4 million.

Recent acquisition of isolated public water systems

In February 2023, GWRS acquired Farmers Water Co., adding approximately 3,300 active water service connections. This acquisition expanded the company's service area by 21.5 square miles in Pima County, Arizona. The strategic focus on acquiring isolated systems aligns with GWRS's growth objectives and enhances its service capabilities.

Global Water Resources, Inc. (GWRS) - Marketing Mix: Place

Operates primarily in Arizona, particularly the metropolitan Phoenix area

Global Water Resources, Inc. (GWRS) primarily operates within Arizona, focusing on the metropolitan Phoenix area. This strategic geographic positioning allows GWRS to cater effectively to a growing population that demands reliable water and wastewater services.

Services include multiple utilities under the Global Water brand

GWRS offers a variety of utility services under its Global Water brand, including:

• Water service
• Wastewater service
• Recycled water service

As of September 30, 2024, the company reported water service revenues of $19.4 million and wastewater and recycled water service revenues of $20.1 million for the nine months ending on that date.

Expanding geographic footprint through strategic acquisitions

GWRS has been actively expanding its geographic footprint through strategic acquisitions. Notably, the company is in the process of acquiring seven isolated public water systems from the City of Tucson, which is expected to enhance its customer base and service area.

Utilizes a regulated environment for service delivery

GWRS operates in a regulated environment, which influences how it manages its service delivery. The Arizona Corporation Commission (ACC) regulates the rates and services offered by GWRS, ensuring compliance with state regulations. This regulatory framework is crucial for maintaining service quality and reliability.

Infrastructure improvements to enhance service reliability

To ensure reliable service delivery, GWRS has committed to infrastructure improvements. For instance, the company entered into a loan agreement with the Water Infrastructure Finance Authority of Arizona (WIFA) for $2.4 million to improve its utility infrastructure, including enhancements to treatment systems.

Global Water Resources, Inc. (GWRS) - Marketing Mix: Promotion

Engages in community outreach and education on water conservation

Global Water Resources, Inc. (GWRS) actively participates in community outreach programs focused on water conservation education. These initiatives are designed to raise awareness among local residents about sustainable water usage and conservation practices. In 2024, GWRS has partnered with local schools to implement educational programs that reached approximately 10,000 students, emphasizing the importance of water conservation in daily life.

Utilizes digital platforms for customer engagement and service updates

GWRS has embraced digital transformation to enhance customer engagement. The company utilizes its website and mobile application to provide service updates, billing information, and educational resources. As of 2024, the mobile app has been downloaded over 15,000 times, allowing users to access real-time information about their water usage, payment options, and conservation tips. Additionally, GWRS has increased its social media presence, achieving a 25% growth in followers across platforms such as Facebook and Twitter.

Focus on regulatory compliance as a promotional tool for trust

Regulatory compliance plays a crucial role in GWRS's promotional strategy. The company highlights its adherence to state and federal water quality regulations, which enhances its credibility and builds trust with customers. In 2024, GWRS received a compliance score of 98% from the Arizona Department of Environmental Quality, positioning itself as a reliable provider of safe and potable water. This commitment to regulatory standards is prominently featured in promotional materials and communications with stakeholders.

Leverages partnerships with local governments for infrastructure projects

GWRS has established strategic partnerships with local governments to enhance infrastructure projects aimed at improving water delivery systems. In 2024, the company collaborated with the City of Phoenix to secure a $5 million grant for upgrading aging water infrastructure. These partnerships not only improve service delivery but also serve as a promotional tool, showcasing GWRS’s commitment to community development and sustainability.

Highlights sustainability initiatives in promotional materials

The promotion of sustainability initiatives is a key focus for GWRS. The company has invested in various green technologies, including water recycling and renewable energy sources for its operations. In its 2024 promotional campaigns, GWRS reported a 40% increase in recycled water usage, amounting to 882 million gallons delivered compared to 629 million gallons in 2023. This achievement is featured in marketing materials, emphasizing GWRS's role in promoting environmental stewardship.

Global Water Resources, Inc. (GWRS) - Marketing Mix: Price

Revenue structure based on fixed monthly fees and consumption charges

The revenue structure for Global Water Resources, Inc. (GWRS) primarily consists of fixed monthly fees and consumption charges. For the nine months ended September 30, 2024, the water service revenue totaled $19.4 million, with $10.2 million attributed to basic service charges, reflecting a 6.7% increase from the previous year. Consumption-based revenue accounted for approximately $8.8 million, indicating a slight decrease of 1.1% year-over-year.

Recent approval for phased rate increases by the Arizona Corporation Commission

On June 20, 2024, the Arizona Corporation Commission (ACC) approved a phased increase in water rates as part of Decision No. 79383. The collective annual revenue increase is approximately $351,000, which will be implemented over five periods starting July 1, 2024, with subsequent increases effective on January 1 of each following year.

Sustainable water surcharge to cover new resource costs

The ACC has also approved a sustainable water surcharge, allowing GWRS to add semiannual surcharges to customer bills based on verified costs of new water resources. This surcharge is designed to address the increasing costs associated with securing new water supplies, thus enhancing the company’s ability to maintain service levels amid growing demand.

Competitive pricing strategy to attract new service connections

GWRS has adopted a competitive pricing strategy aimed at attracting new service connections. As of September 30, 2024, active water connections increased by 4.4% to 35,464 from 33,976 the previous year, primarily due to organic growth in service areas.

Adjustments to rates based on regulatory decisions and market conditions

GWRS adjusts its rates in response to regulatory decisions and prevailing market conditions. The recent rate adjustments include a 5.0% increase in active wastewater connections, contributing to an increase in wastewater service revenue of 5.1% for the three months ended September 30, 2024, compared to the same period in the previous year.

In summary, Global Water Resources, Inc. (GWRS) effectively leverages its marketing mix to foster sustainable water management and expand its service footprint in Arizona. Through its diverse product offerings, including regulated water services and recycled water, and a strategic focus on place through geographic expansion, GWRS is positioned to meet growing demand. Its proactive promotion of community engagement and sustainability initiatives builds trust, while a competitive pricing strategy ensures accessibility and compliance with regulatory standards, making GWRS a key player in the water resource sector.

Updated on 16 Nov 2024

Resources:

1. Global Water Resources, Inc. (GWRS) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Global Water Resources, Inc. (GWRS)' financial performance, including balance sheets, income statements, and cash flow statements.
2. SEC Filings – View Global Water Resources, Inc. (GWRS)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.