marketing_project final project

8/6/2019 Marketing_project Final Project

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International Islamic University Islamabad

Project: Water Purification Marketing Plan

Submitted to: Sir Mohsin Banday

Submitted By:Atif Jamil 2530-FMS/BBA/S09Abdullah Ejaz Butt 2505-FMS/BBA/SO9

Muhammad Tahir 2532- FMS/BBA/SO9

Suleman Javaid 2526- FMS/BBA/SO9
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FINAL PROJECT

OF

MARKETINGMANAGEMET

ON

WATERPURIFICATION

MARKETING PLAN


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COMPANY SELECTED

Pure Life CycleIndustries

TEACHER REMARKS


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Executive Summary

Pure Life Cycle Industries, Inc. provides the service of Water Purification. This is theprocess of purifying water for industrial reasons. Pure Life Cycle Industries will takeadvantage of an unsatisfied market need Pure Water on a portable basis.

The company will primarily focus its marketing strategies on offering Water Purificationservices to the untapped market of customers who require high-quality Pure Water for

their water treatment facilities. The facility that Pure Life Cycle Industries will utilize islocated in Attock, Pakistan and is already in limited production. Pure Life CycleIndustries will generate gross sales of Rs17,88,000 in the first year, reaching Rs2.9million in the second, and Rs4.2 million in the third years.

Pure Life Cycle Industries' keys to success are:

1. Good quality control in the factory. Customers for high purity water have a verylow tolerance.

2. Fast response. In the case of most of Pure Life Cycle Industries' customers, thecost of the water is not a major element in their overall costs, but a very expensive

shutdown could result due to poor or slow servicing.3. High-profile allegiances. Key to overall company success is connected closelywith success in achieving the goal of developing a dealership network of service-oriented water companies.

Pure Life Cycle Industries has a strong management team with years of industryexperience. By leveraging their experience, as well as their rich market insight, the teamwill be able to execute on this solid business opportunity.

Sales Forecast

2012 2013 2014Sales Small companies < Rs1 million 381,765 600,878 630,922Large companies 406,591 1,299,867 1,655,430Total Sales 788,356 1,900,745 2,286,352

Direct Cost of Sales 2012 2013 2014Small companies < RS1 million 114,530 180,263 189,277Large companies 121,977 389,960 496,629


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Subtotal Direct Cost of Sales 236,507 570,224 685,906

Situation Analysis

Pure Life Cycle Industries is in its first year of operation. It purchased the assets of anexisting company and this has also provided a customer base.

Pure Life Cycle Industries' products and services have been well received and marketingwill be critical to reach the desired levels of market penetration.

The basic market need is for Water Purification units that can be leased or purchased.The market need for leases includes exemplary service levels as the cost of down time fora business is far greater than the actual cost of the product. This means that when a

customer undertakes a lease they are effectively leasing Pure Life Cycle Industries as aservice provider.

Market Summary

Pure Life Cycle Industries possess good information about the market and knows a greatdeal of information about the wide range of potential customers. This information will beused to generate strategies that will allow it to better understand its customers, theirspecific needs, and the most effective ways to communicate with them.


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Market Analysis

2012 2013 2014 2015 2016

Potential Customers Growth CAGR Small companies < Rs1million

6% 567,443 601,490 637,579 675,834 716,384 6.00%

Large companies 7% 222,436 238,007 254,667 272,494 291,569 7.00%

Other 0% 0 0 0 0 0 0.00%

Total 6.28% 789,879 839,497 892,246 948,328 1,007,953 6.28%

Market Needs

Pure Life Cycle Industries is providing the market with a wide range of water purificationsystem options from purchasing to production volume to purity. Pure Life Cycle

Industries seeks to fulfill the following benefits that are important to its customers.

Selection: This industry has a wide variety of potential uses and Pure Life CycleIndustries will be able to offer solutions to everyone.

Flexibility: Pure Life Cycle Industries must be able to work with each customer'sindividual needs.

Customer Service: Exemplary customer support is required since purified wateris such an important variable for the customer's business.

Market Trends

One notable trend in industries is to outsource. Chief financial officers analyze the costsof producing something in-house versus the costs of farming it out. Water purification isno exception. Although many large users of Pure Life Cycle Industries will want to set uptheir own in-house capacity, the capital costs, maintenance costs, and the costs of dealingwith Water Purification waste often make Water Purification a more economical solution.Downsizing within a company with its own pure water manufacturing capability oftenwill lead to a management decision to shut down their in-house plant and switch over toportable service.

Another trend is for more and more industries to need higher degrees of purity in theirmanufacturing process, which results in an ever-growing market for Pure Life Cycle

Industries.


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Market Growth

The market growth percentages used in the market analysis table were obtained fromvarious articles appearing in Ultrapure Water, the definitive journal of high-purity water.Specific articles can be located from an index on their website, www.talloaks.com.

SWOT Analysis

The following SWOT analysis captures the key strengths and weaknesses within thecompany and describes the opportunities and threats facing the industry.

Strengths

A very strong service-based company culture. The ability to meet customer's particular needs. An already existing customer base.

Weaknesses

The need for significant capital for equipment. Capital expenses required for the development of a comprehensive dealer

network. Difficulty in establishing brand equity.

Opportunities

Participation in a growing market. The huge diversification of potential customers, reducing risk if there is a

downturn in a specific industry. Operating efficiencies that are attainable as the business grows.


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Threats

Changes in technology that could affect companies that are heavily invested incurrent technology.

Future/potential competition from a large company that decides to take a more

flexible approach to meeting customer's needs. Changes in the regulatory environment (primarily applicable to the higher purity

products).

Competition

Users of Pure Life Cycle Industries have had little choice in regards to their provider. It isWater Purification on a bulk basis only. Some small customers have obtained the WaterPurification through their local supplier or similar water serviceman who in turn obtainsit from Government Filter.

The fact that small players in the market can capture some of this Water Purificationbusiness from Government Filter despite a higher price (RS163-RS180 per cu. ft. versusRS140 per cu. ft. from Home Built Filter) is a good indication of the importance thatservice plays in the buying decision. Rarely does the price of Pure Life Cycle Industriesrepresent a significant variable production cost in a manufacturing process. Much moreof a factor is worry about quality level and service response time.

In reaction to the service complaints of customers for Government Filter's WaterPurification, several small competitors have sprung up in Pakistan. This company hasbeen supplying customers with Pure Life Cycle Industries exchange although they haveno Water Purification of its own. It merely services customers and sends the tanks to a

Water Purification facility of another company.

The prices charged by all local companies to regenerate are between Rs163 and Rs180per cu. ft. for mixed bed. They charge Rs120 to Rs130, depending on tank size.

Service Offering

The company is in the water purification business. Pure Life Cycle Industries is engagedin a specific branch of this business called "Bulk Purification." Within this branch, thecompany plans to emphasize a further service specialization known as "segregatedregeneration," as opposed to "bulk regeneration."

The service products offered by Pure Life Cycle Industries are segregated as well as bulkregeneration of portable Pure Life Cycle Industries exchange tanks.

The application of Water Purification is broad. Practically all industries usingwater in processing are potential accounts. Size of company is rarely adetermining factor.


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There are applications in electronics and high pressure boilers where flow rates of severalhundred gallons per minute are provided by Water Purification systems. The main uniquebenefits are:

1. The client does not have to incur substantial capital costs to install an in-house

Water Purification Plant. This could run over Rs50,000. The company can merelyrent the portable tanks (or buy them for approximately Rs1,200 each) and pay forthe Purification service when the tanks become depleted.

2. The company also saves by not needing experienced technicians to maintain anin-house plant.

3. Space is another important factor. An in-house Water Purification capabilityrequires a great deal of space, whereas a portable tank system using flexible hoseconnections can fit virtually anywhere in minimal space.

4. Ease of installation. Pure Life Cycle Industries capability can be arranged in a dayand can be easily expanded to accommodate growth.

5. There are no chemicals, nor regenerated waste to be handled or concerned with

on-site.6. Flexibility in water quality. Resin types can be easily changed in tanks if waterquality requirements change.

7. Even locations that have their own in-house Water Purification system often useportable Water Purification as a back-up since a shut down can be very expensive.

Providing the service to a customer is simple, usually requiring only minimal equipment.

Ion exchange is a major means of purifying water for industrial purposes. The degree ofpurity depends on the source of the water and its use. Companies, ranging from carwashes to the pharmaceutical and semiconductor industries all need various amounts and

degrees of purified water. Ion exchange is a chemical process by which ions, or ionicsubstances that are considered "undesirable" in water, are reduced or removed from waterby use of ion exchangers or resins. Most ground water contains unwanted dissolvedsubstances, such as calcium and magnesium, whose molecular structure contain chargedion particles.

The most common impurities with ions of a positive charge are: sodium, calcium,magnesium, potassium, iron, and manganese. These are called cations. The unwanteddissolved substances having negative ion charges, known as anions, are: bicarbonate,chloride, carbonate, sulfate, nitrate, and bisilicate.

When a substance separates into ions, each ion is now able to combine with another ionwith opposite charge, even if that ion is from a totally different type of molecule.Substances only separate into ions when immersed in water molecules.

The field of deionization, known as DI for short, utilizes this natural phenomenon bydesigning a cation exchange resin which will substitute hydrogen atoms (H+) for virtuallyall of the other cations, and designing an anion exchange resin which will substitute


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hydroxyl ions (OH-) for virtually all of the other anions. By means of this process we endup with only H+ and OH- that is equivalent to H20 (water).

By forming this demineralized water, we create water that is no longer a conductor. Wecan measure the purity using an ohm meter. Ohms measure resistance. The higher the

ohm count, the lower the conductivity. Pure Life Cycle Industries is routinely formed to18 mega ohms per centimeter, which is very close to zero conductivity (18.23 at 25degrees Centigrade). Without giving lengthy chemical explanations, what happens in theprocess is as follows:

1. City tap water is first passed through a carbon filter to remove chlorine, sand, andother unwanted substances. Sometimes, reverse osmosis and ultraviolet light areused to remove non-ionized substances, organic materials, etc., prior to thedeionization stage.

2. The water then passes into a specially-treated cation resin. This resin takes theform of small beads located inside a tank. The positively charged ions from the

unwanted dissolved minerals will attach themselves to the resin.

3. The "de-cationized" water then passes to a tank of anion resin to catch theunwanted negatively charged ions that have dissolved in the water. Here, theanions and the anion portions of the acids attached to the hydrogen are attractedto, and held by, the positive sites on the anion exchange resin beads. They do thisby kicking off the negative hydroxyl ions that were put on the beads (again inoverabundance). The leftover hydrogen portions of the acids (H+) now join thefreed hydroxyl ions (OH-) to form water (H20).

4. If a very high degree of purity is called for, the water will next pass into what iscalled a "mixed bed" which normally contains resin in a ratio of one part cation

resin to two to three parts anion. Steps 1-3 occur again here thus catching the lasttraces of unwanted ions of the dissolved substances.5. The tanks of resin will continue to purify the water flowing through them until the

resin balls expand and their capacity to catch ions is depleted.6. The water flow must stop until the tanks are replaced with tanks containing

regenerated resin.7. To regenerate the cation resin, a solution of acid is used to bombard the resin

removing all the previously-caught positively-charged ions. Then the tank isflushed to remove any excess acid. The anion resin tank is also given a causticsolution to bombard the previously-caught negative ions. The anion resin is thenflushed to remove any residual caustic solution.

8. The tanks now contain regenerated resin and the ion exchange process cancontinue with the tap water turned on.

The Water Purification process can take place at the location where the water is beingpurified, however, most users of Pure Life Cycle Industries do not install the expensiveequipment to do this but simply arrange for a service provider, such as Pure Life CycleIndustries, to replace the tanks and perform the Purification process off-site.


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Future Product and Services

In addition to bulk and segregated Water Purification Pure Life Cycle Industries, thecompany plans to expand sales of filters and DI cartridges. These sales have beendisregarded in this marketing plan, but they could become more significant in the future.

These products lend themselves to mail order type sales, as they are small andlightweight. Cartridges are disposable items. Pure Life Cycle Industries also has plans todevelop a reusable shipping container for its smallest (8" x 18") DI exchange tank so thatthis can also be shipped via UPS. This product will be marketed on a website, as well asthrough conventional direct mail and yellow page advertising.

Industry Analysis

The industry for providing Water Purification service is dominated by many smallcompanies. These small companies controls between 90 to 95% of the WaterPurification service business in Pakistan. These companies has grown from Rs1 billion to

over Rs5 billion in the past six years.

Industry Participants

Industry participants are varied, as there are several means of obtaining purified water.There are companies which design and engineer reverse osmosis equipment. Thisequipment has a sizable share of the water market at the end close to the municipal waterinlet.

Some industry participants are primarily engaged in water softening and water filtrationfor drinking and household purposes. These companies may also utilize green sand to

remove iron and magnesium hardness derived from aging municipal piping systems.

In short, there is a full range of industry participants representative mainly involved inprivate households, to large companies involved in engineering, design, consulting,component manufacturing, waste water treatment, etc.

Keys to Success

Pure Life Cycle Industries' keys to success are:

1. Good quality control in the factory. Customers for high purity water have a

very low tolerance threshold for flaws.2. Fast response. In the case of most of Pure Life Cycle Industries' customers, the

cost of the water is not a major element in their overall costs, but a very expensiveshutdown could result due to poor or slow servicing.

3. High-profile allegiances. Key to overall company success is connected closelywith success in achieving the goal of developing a dealership network of service-oriented water companies.


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Critical Issues

Pure Life Cycle Industries' critical issues that it faces are the following:

Expand at a rate not for expansion itself, but to properly serve existing customers.

Pursue controlled growth that dictates that payroll expenses will never exceedsales revenue.

Marketing Strategy

Pure Life Cycle Industries' marketing strategy will be to execute and communicate itsvalue proposition of service and market segmentation advantage in providing WaterPurification faculties to the customers. This will be expanded on in upcoming sections.

Mission

Pure Life Cycle Industries' mission is to segment the market for pure water by providingniche products to specialized industry sectors that are otherwise not properly serviced bylarge pure water suppliers.

Marketing Objectives

Maintain positive, steady sales growth each quarter. Achieve increase in market penetration every two quarters. Generate brand equity so that Pure Life Cycle Industries becomes a household

word within the industry.

Financial Objectives

Decrease fixed costs by increasing the sales base, leveraging economies of scale. Increase profit margin by 2% a year through operating efficiencies that are then

passed throughout the organization. Do not decrease research and development, as a percentage of sales, regardless of

the economic climate or market position.

Target Markets

The market for Water encompasses many industries, and within them is a wide range ofpurity needs.

At the low end, a car wash might use water. Their need for purity might be only .5Megohms (Ohms measure resistance). Water is only a good conductor because of thequantity of dissolved solids in the water. As the ion exchange process lowers the level oftotal dissolved solids (TDS) the resistance, measured in ohms, increases.


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A purity level of .5 Megohms is pure enough for a car wash final rinse cycle, but not evenclose to pure enough for a electronics wafer manufacturer. They would need 18Megohms, at which point the water would be pure and incapable of acting as a conductor.

Generally speaking, those sectors of the market that need the highest levels of purity are

the customers for Pure Life Cycle Industries.

This is a very strong sales feature when dealing with dialysis units of a hospital, labs andpharmaceutical manufacturers, and electronics makers. These customers are happy to paya premium over the price charged for bulk Water Purification service because they do notwant their customer suffer from any problem regarding Water.

Quantifying the market for Water Purification equipment is not easy. Unlike the marketfor used cars, metal furniture, or nearly every product one can think of, there are noreadily-available statistics on the market for Water Purification.

Hospital Dialysis Units

Hospitals in Pakistan need Pure Water on daily bases it is there most important needwhich is to be fulfilled by our industry. Assume this sector represents only 10% of thehigh purity market, or 55,000 cu. ft. annually.

Electronic Manufacturers

Semiconductor manufacturers and other makers of electronic components need purewater to flush with. As microprocessors use wafers of ever-decreasing size, therequirements for pure water to rinse with increase, as do various other additional micro

filtering. Assume this sector represents 30% of 558,000, or 223,000 cu. ft.

Machine Tools and Parts

This is one of the fasting growing sectors as more manufacturers conform to the ISO9000 standard, which requires delivered parts to be clean (defined as rinsed thoroughlywith water of one Mega ohm purity or better). This category includes a need for Purewater in machines consuming cutting oil, any machine with cooling systems, and otheruses. Assume this sector represents 30% of 558,000, or 167,000 cu. ft.

Other

This sector of the market will represent the market for Purity of water lower than one

Megohm in purity. Assume that the following industries take up the remaining 30% ofthe total market. Some industries that would be included in this "other" category wouldbe:

Car washes need Pure water for the final Touch. Food and beverage industry would use it for improving taste and texture of baked

goods, cutting and blending alcoholic beverages, dissolving food colors, etc.


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Cosmetics industry needs it for the production of shampoo, liquid soaps, coldcreams, hand lotions, nail polish remover, permanent waving solutions, rubbingalcohol, and hydrogen peroxide.

Electroplating industry utilizes Pure Water in anodizing, electro-tinning, rinsing,rust proofing, and actual plating with various metals such as nickel, copper, silver,

and chromium. Ceramics industry requires it to control pH in preparation of slips and glazes,

rinsing clay pieces, producing enamel. Textile industry uses Pure Water in steam irons and other steaming equipment,

humidification systems, as well as rinsing, dying and bleaching processes. Railroad industry for high pressure boilers, cooling systems and storage batteries

and for many applications where steam is used) Others, such as applications for grinding optical lenses, silvering solutions for

mirrors, manufacturers of blueprint paper, manufacturers of ice, humidification ofgas supplies to superchargers of high speed aeronautical engines, growingorchids, etc.

Positioning

Pure Life Cycle Industries' ability to regenerate Pure Water on For Specific basis, ratherthan only bulk, is a capability that should provide quick and easy entry into the usermarket where the highest water purity is needed.

These users, blood analysis, hemodialysis units, and medical laboratories for example,are especially sensitive to contamination risks.

The second most important position statement is Pure Life Cycle Industries'

concentration on the Water Purification business. This concentration will force Pure LifeCycle Industries to provide a higher level of service, and more quickly, too. It must beremembered that the cost for the highest level of water purity is not a significant costelement in the overall cost structure. However, a service shutdown, for quality or forservice reasons, would be very costly to high-technology users of Pure Life CycleIndustries.

Strategy Pyramids

The single objective that Pure Life Cycle Industries faces is to position itself as thepremier service provider of Water Purification equipment, quickly developing market

penetration.

The marketing strategy will seek to first create customer awareness regarding theproducts and services that Pure Life Cycle Industries offers, build a network of dealersthat can assist Pure Life Cycle Industries in the distribution, and build a large foundationof satisfied, repeat customers.


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The message that Pure Life Cycle Industries will seek to communicate is that it offers awide range of flexible options for all different types of portable purification units. Theseflexible options will be coupled with extraordinary customer service.

This message will be communicated by various methods. The first method will be

advertisements. The advertisements will be placed in industry journals, not only thewater purification industry, but industry journals of the customers. This will help PureLife Cycle Industries develop brand awareness.

Another method of communication will be participation in trade shows. Being a part ofthe trade shows is almost a requirement these days and Pure Life Cycle Industries willhave a significant presence. The last method of communication will be a roving salesforce whose task it is to set up a dealership network.

Marketing Mix

Pure Life Cycle Industries' marketing mix is comprised of the following approaches topricing, distribution, advertising and promotion, and customer service.

Pricing: In-line with the conclusions drawn in the positioning statements, PureLife Cycle Industries can charge a higher price for its High Quality Pure Water.There is virtually no competition for this product in the Pakistan market.

Charging Rs63 per cubic foot , as used in the sales projections, is more than a65% increase over the price for Other Companies. Pure Life Cycle Industries iscurrently successfully charging in excess of Rs70 for this product.

It is essential that Pure Life Cycle Industries place a premium price consistentwith its superior product. Wholesale prices have been established to encouragethe quick formation of a dealership network. Dealers are afforded a 33% discount.

Distribution: Wherever Pure Life Cycle Industries cannot economically selldirectly, due to distance or quantities, it will utilize a network of water servicecompanies. These companies will be carefully chosen for their quality of service.

An arrangement will be set up whereby the distributor will offer WaterPurification service along with its other water services. The installations caneasily be handled by them. They would tag the tanks and return and pick up fromthe Pure Life Cycle Industries plant.

Being able to offer this service increases the image of the local water servicecompany. It fosters a feeling a one-stop shopping. A 33% discount off the retailprice should be adequate to satisfy the distributors.

Advertising and Promotion: The main focus of promotion will be two-pronged:promotion to Pure Life Cycle Industries end users, and promotion to wholesalers.Promotion to wholesalers should receive primary stress due to the extended reach


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made possible by the wholesaler network with its existing customer base.

The sales force of these wholesale distributors needs to be educated on Pure LifeCycle Industries' positioning statement so that they all understand the importantsales advantages of Water Purification. Being able to offer Water Purification

service to a distributor's customer list is a great advantage to the distributor, andthis fact needs to be clearly spelled out to them.

Therefore, the Pure Life Cycle Industries relationship with a dealership network isone in which both sides benefit. Pure Life Cycle Industries should strive to createa small-town, friendly relationship with its customers. Company brochures willshow a map with all the Pure Life Cycle Industries locations, including eachnewly acquired distributor. The distributor trucks, as well as Pure Life CycleIndustries vehicles, would carry the Pure Life Cycle Industries logo, helping all toachieve name recognition. Cost savings would result through sharing literature,leads (by territory and/or industry), co-op marketing costs, and the sharing of

technical expertise. Customer Service: The approach to customer service can be succinctly stated -

The customer's expectations must be exceeded, always. The only way thecompany can succeed is if they ensure all of the customer's needs are being metand the customer leaves the transaction with the feeling that they were trulyappreciated.

Marketing Research

Pure Life Cycle Industries performed comprehensive amounts of market research beforethe initiation of these business plans. Much of the research occurred at the empirical

level where two of the principals have had extensive industry experience.

The owners were aware when they entered the industry that at some point in the futurethey desired to operate their own business instead of working for someone else. Withthese ideas implanted in their minds, they both worked for larger companies for yearswhile making observations and doing research within the industry. This comprehensiveresearch brought them to the conclusion that there was an unserved in the market thatcould be profitably exploited.

Financials

This section will offer a financial overview of Pure Life Cycle Industries and theiractivities related to marketing. This will include break-even analysis, sales forecasts,expenses forecasts, and how they link to the marketing strategy.

Break-even Analysis


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The break-even analysis indicates that Rs55,686 will be needed in monthly sales to matchthe total planned expenses.

Break-even Analysis

Monthly Revenue Break-even Rs42,151

Assumptions:

Average Percent Variable Cost 30%

Estimated Monthly Fixed Cost Rs42,121

Sales Forecast

Sales are running atRs24,000 monthly, exclusive of rental revenue. This approximates285 cubic ft per month. The plant capacity will be 100 cu. ft. per day, on a one-shiftbasis. Based on the potential market outlined in the Marketing Section of this plan,growth in sales of regenerated segregated resin should reach 433 cu. ft. per month byOctober (equals 20 cu. ft./day) which is this plan's starting point, and growing steadilyeach month until 80 cu. ft. per day is reached (80% capacity) by the end of the first year.

Once the 80% capacity utilization level is reached (October 2012), unit sales will growby 5% in year two and 5% again in year three. This growth can be achieved within thecapacity limits of 100 cu. ft. daily (26,000 cu. ft. per annum) without increases inproduction labor. Further increases in segregated regeneration would require overtimelabor charges. Also, for the projection purposes, direct unit costs for years two and threeremain at the level of year one.


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Tank Rental Income:

Due to the high costs of purchasing tanks, many new customers opt for renting tanks on amonthly basis. For purposes of these projections we will assume that:

1. Dealership-generated sales resulting in tank rentals will be handled by them (i.e.ignored in these projections).

2. Half of all directly-generated sales will involve rental tanks (i.e. total unit salesfor October amount to 534 cu. ft. of which half will be dealer-generated. Totaldirect sales in October = 267 cu. ft. of which half (133 cu. ft.) will need rentaltanks.

3. Assume, for simplification of projections, all rentals will be in 12 inch tanks

holding 3.6 cu. ft. with rental price of $40 per tank. October will see rentalincome of Rs1,480 (133 cu. ft. divided by 3.6 cu. ft./tank times Rs40 rental pertank).

Tank Sales:

It is assumed that those customers who do not opt to rent their tanks will already havetheir own tanks or will purchase tanks from Pure Life Cycle Industries. Sales of tanks isassumed at only five percent of the number of monthly rental tanks. Sales price isRs1,200. Cost equals Rs450.

Expense Forecast


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The expense forecast, detailed in the next section, will be used as a tool for theorganization to keep the company on target for set marketing goals. The forecast willprovide indicators when the company is not on target and modifications are needed forthe proper implementation of the marketing plan.

Marketing Expense Budget

2012 2013 2014

Advertisements Rs96,500 Rs110,400 Rs120,000

Tradeshows Rs25,000 Rs30,000 Rs35,000

Other Rs108,700 Rs115,000 Rs120,000 ------------ ------------ ------------

Total Sales and Marketing

Expenses

Rs230,200 Rs255,400 Rs275,000

Percent of Sales 29.20% 13.44% 12.03%

Controls

The purpose of Pure Life Cycle Industries' marketing plan is to serve as a guide for theorganization in their pursuit to generate brand awareness, increase sales, and build astrong network of dealers. The following areas will be monitored to gauge performance:

Revenue: monthly and annual, performance compared to planned salesprojections.

Expenses: monthly and annual, compared to planned expenses.


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Research and Development: as a percentage of revenue. Customer Satisfaction: to result in repeat purchases and generating active

customer referals.

Implementation

The following milestones identify the key marketing programs. It is important toaccomplish each one on time and on budget.

Milestones

Advertising Start Date End Date Budget Manager Department

Marketing plan

completion

1/1/2012 2/1/2012 $0 John Marketing

Ad campaign #1 2/1/2012 6/30/2012 Rs39,000 John MarketingAd campaign #2 7/1/2012 12/30/2012 Rs57,500 John Marketing

Trade show #1 3/1/2012 3/15/2012 Rs6,000 John Marketing



Totals Rs121,500

Contingency Planning

Difficulties and Risks

Problems generating sufficient sales. Overly aggressive and debilitating actions by competitors. Barriers developing a large network of supporting dealers.

Worst Case Risks May Include

Determining that the business cannot support itself on an ongoing basis. Having to liquidate equipment or intellectual property to cover liabilities.

marketing_project final project

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