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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

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Blue water,itb

  • 1. BLUE WATER Prepared by: SHAKIR SAID KHAN (3808) SHAHID ALI KHAN(3732) NASREEN SALEEM(3753) SAJID ALI(3756) SHAMWEEL JAVED(4020)
  • 2. Company Analysis • Goals • Focus • Culture • Strengths • Weaknesses
  • 3. 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
  • 4. Market • 1360 bottles a day • Households, corporations • Health conscious, convenience oriented • Karachi • Trends
  • 5. 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.
  • 6. 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
  • 7. 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.
  • 8. 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.
  • 9. 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
  • 10. 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”
  • 11. 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
  • 12. Target Market Consumer Markets • Housewives • Health conscious individuals • Small corporations • One-off consumers purchasing from retail • Institutions (hospitals and schools etc.)
  • 13. Customer Information Needs • Health awareness • Reliability • Water specification • Price • Customer service
  • 14. 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
  • 15. 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%
  • 16. 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
  • 17. 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.
  • 18. Alternative Marketing Strategies • Blue Water logo painted on vans • Pamphlets or Brochures • Highlighting product advantages • Approach retailer outlets
  • 19. Alternative Marketing Strategies • Approach institutional clients • Incentive Schemes for existing customers to attract new customers • Discount Schemes for new customers • SMS advertising
  • 20. Alternative Marketing Strategies • Roadside Supplying • Product modification • Mall advertising • Medical Clinics