blue water,itb

BLUE WATER

Prepared by:SHAKIR SAID KHAN (3808) SHAHID ALI KHAN(3732)NASREEN SALEEM(3753)

SAJID ALI(3756)SHAMWEEL JAVED(4020)

Company Analysis

• Goals

• Focus

• Culture

• Strengths

• Weaknesses

Our Purpose

• To give the company a vision

• To provide the company with a concrete direction and purpose

• To set the goals of creating brand awareness and penetrating the current market

• To design a roadmap for the company’s achievement of those goals

Market

• 1360 bottles a day

• Households, corporations

• Health conscious, convenience oriented

• Karachi

• Trends

Product Mix

Product• 19 liter blue (clear transparent) and

white bottles

• Water purified through filtering and reverse osmosis. Minerals are then added, and the water is finally tested in a laboratory.

• Non-differentiated, but very high quality product in its price range.

Product Mix

Price• Cost of blue bottles Rs 250. Cost of white

bottles Rs 200.

• Profit margin of 15%. Retail price of Rs 50 for blue bottle and Rs 40 for white bottle as compared to Rs 120 of competitors’ products

• Initial membership charges of Rs 500 for each new customer

Product Mix Distribution• 7 Delivery vans will be delivering to 7

different zones ranging from Clifton and Defense to Nazimabad and Gulistan-e-Jauhar.

• Each van contains 3 people. One salesman and two helpers who carry bottles to and from the van.

• No retail outlets have yet been approached

• No distribution offices have yet been set up.

Product Mix

Promotion• Mainly relying on word-of-mouth to create

awareness

• Very low budget for promotion. Resulted in lack of awareness of product benefits.

• Is the main focus of new marketing plan, as it is the perfect tool to penetrate the current market.

Customer Analysis• The current market for drinking water

contains many potential health conscious customers who demand pure water delivered through high-quality reliable service at an affordable price

• Blue Water will directly delivered to them through delivery vans

• The company will not lose many customers because of the high quality of service provided

• Complaints are registered, processed and taken care of within a day leaving no chance for customers to switch from our quality product

Competitor Analysis

• The market for 19 liter bottles is approximately 40,000 bottles each day. How some of them appeal to the consumers:

• Nestle “Pure Life” - Main competitor

• AVA “Be Good to Yourself”

• Culligan “Better water, Pure and Simple”

Market Segmentation

The bottled drinking water market can be segmented first in to Industrial and Consumer markets, and then further segmented within these markets.

• Commercial

– Stores

– Medical Clinics

– Banks

Target Market

Consumer Markets

• Housewives

• Health conscious individuals

• Small corporations

• One-off consumers purchasing from retail

• Institutions (hospitals and schools etc.)

Customer Information Needs

• Health awareness

• Reliability

• Water specification

• Price

• Customer service

What Do We Need?

• Capitalize on existing strengths of exceptionally pure water competitive price, extremely reliable service and a very large distribution network

• Achieve a presence in the market that already exists, but is not felt

• Create a brand image that promotes purity, caring and concern

• Increase brand recall to the point that Blue Water becomes synonymous with delivered water

• Increase information about our product and its details

Costs and estimated sales

Cost

Estimated %

increase in sales

Van PKR 60,000 8%

Pamphlets PKR 10,000 2%

Brochure PKR 15,000 5%

Roadside supply PKR 2,000 6%

Mall stall PKR 15,000 7%

Stores PKR 5,000 12%

Total PKR 107,000 40%

Simple profit

• 1,360 Bottles per day

• 1360 x 50 x 15% = Rs 10,200 per day

• 10200 x 30 = Rs306,000 worth of profit increase

Alternative Market Strategies

• Current market is mainly occupied by Nestle, Culligan and other small local providers.

• Nestle and Culligan provide too tough a competition

• Mainly targeting customers who use tap water or bottled water provided by local providers which is injurious to health.

Alternative Marketing Strategies

• Blue Water logo painted on vans

• Pamphlets or Brochures

• Highlighting product advantages

• Approach retailer outlets

Alternative Marketing Strategies• Approach institutional clients

• Incentive Schemes for existing customers to attract new customers

• Discount Schemes for new customers

• SMS advertising

Alternative Marketing Strategies• Roadside Supplying

• Product modification

• Mall advertising

• Medical Clinics