Marketing plan for indian bottled water company

Marketing throw for indian bottled wet companyThis tradeing plan is a part of a larger business plan that the police squad thought of during preliminary discussions. The idea of introducing flavored water in the market emerged from the Indias urban residents argon becoming increasingly health conscious. In fact, Off-trade constant apprise gross gross gross of bottled water are predicted to grow by an 18% CAGR over the forecast period 2009 and 2014(source Euromonitor).FMCG players have responded by re-examining their ingredient strategies and formulations to ensure that they suit new lusty habits. Urban consumers are increasingly on the hunt for substitute for carbonate imbibing creating new market opportunities for an array of suppliers.The current flavored water market is exceedingly un nonionized with major manufactures being in-house chefs and roadside vendor. They supply to local hotels, sweet shops and are now slowly moving into supplying to organized retailers.We rec ommend the Indian Parle a FMCG giant to venture in the untapped flavored market to soak up starting signal factor advantage in India. The established AquaFina brand can be used to launch the harvesting. The end consumer is from 0 80 forms as water is meant from infant to everyone. There is an opportunity to position and offer premium and secernate water in India today. Water has to be scaled higher in terms of positioning both from functionality perspective, as well as from a life style perspective.Key statistics of the Indian bottle water marketSituational AnalysisThe flavored market in India is small, only ab show up Rs 11 crore out of the total bottled water market of about Rs 1,100 crore. But numerous small market segments have been known to explode with the entry of good products. For example, enhanced and flavored waters were just $ 234 million in the US in 2000. By 2010, the category is projected to grow to $ 8.6 billion and is the fastest exploitation beverage cat egoryThe 2009 India quiet Drinks Report indicates that carbonated beverages using up is declining in India for consecutive years since 2007. Packaged water harvest-festival projections, however, are in excess of 40 per cent, with still make merrys (Frooti, Maaza and others) growing at under 10 per cent.Parles Bisleri, PepsiCos Aquafina and Cokes Kinley at present rule the lower end of the Indian packaged water category, priced as they are between Rs 10 and Rs 14 for a 1 litre bottle. The top end is dominated by imported brands like GroupeDanones mountain water brand Evian and Nestles spark water brand Perrier, priced between Rs 80 and Rs 110 a litre. Himalayan apostrophizes Rs 25 a bottle. Flavored water falls in the mid-priced segment of the bottled water category.CompetitionCoca-Cola is expected to launch Bonaqua. Globally, Bonaqua sells sparkling flavored water in ranging from strawberry, litchi, apple and mint to lemon and lime. Coca-Cola already sells in India the bottled water brand Kinley. Tata Tea is in any case looking to extend Himalayan into flavored water.PepsiCo excessively is believed to be planning to extend its bottled water brand, Aquafina, into flavored water. Nestle executives refused to comment. Aqua Montana India recently launched a carbonated niche drink, Slim and energy drink, Explode and is as well as looking to choose a foray in the flavored water space.CustomerIn terms of the socio-economic factors, Indian lifestyle is undergoing a massive socioeconomic change, which is also being reflected in food habits. People want value for time, money in terms of quality and variety. The scenario in India is alarming with respect to increasing cases of obesity. consort to a research conducted by NHFS (National Health and Family Survey), obesity has already affected 12.1 percent males and 16 percent females of the countrys total population, and the percentage is growing rapidly.. The need to shift to healthy drinks from high-sugar conta ining beverages that can be achieved by dint of consuming flavored water is really important to control obesity.CollaborationParle can collaborate with the restraunts and union houses for placing it in their complimentary drink menuIt can collaborate with IRCTC to provide bottled water in railwaysIt can collaborate with airlines to place it in airports and provide it during soundParle can work with the health care awareness committee like NHFS to highlight the importance of shifting from high calorie drinks to low calories drinksChannelNo matter how strong the top of the mind is, brands in this category are consumed depending on shelf space availability and chill space availability. Thus it has to alluvion all possible channelMarketing ObjectivesAs suggested by the Ansoff Growth Matrix, our strategy would be one of Product development and to some extent that of Diversification. This would necessitate the followingIncrease the market share This can be achieved by a combination of competitive pricing strategies, advertising, sales promotion and perhaps more(prenominal) resources dedicated to key account sellingTarget increased usage by potential customers, e.g. Introducing frequent buyer schemes, loyalty schemesTo drive sales, we could also guess the followingInnovative product dimensions or packaging e.g. offering combo packs, family packs, increasing pack size.Proper mix of distribution transmit, e.g. making it available in up market supermarkets, kirana stores, confectionaries, canteens and railways and airlinesDifferent pricing policies to attract different customers or create new market segments, e.g. large size packs could be sold at prices the consumers deem economical.Introduction of niche segment variant like flavored water for infant -This may require the development of new competencies and communications mix accordingly.The plan deals with the changes that can be brought about to put down the new product, packaging, distribution, pricing an d communications mix to ensure better awareness as well as acquire a significant amount of the targetSince we are positioning the Sheetal as a healthy substitute for other beverages, the following excerpt from Euromonitor report on packaged foods strengthens the future prospects of this product.Health-based drinks have increased in favor in 2009. Capitalizing on the social acceptance of conspicuous consumption, so long as health was not compromised, companies launched a wide array of products across categories. Products highlighting health, such as energy bars and drinks, digestive biscuits, and healthier edible oils, all frame ready takers, even as brands jostled for differentiationFinancial ObjectivesTo achieve a crore plus sales in all of the 7 electron tubes where the launch happens in the origin quarter of launch. The metros where the product entrust be launched are Bangalore, NCR, Mumbai, Hyderabad, Chennai, Kolkata and Pune.To break even within 3 quarters and make profit s by the end of first year of operationThe detailed calculations can be seen in the action computer program and execution section.Marketing ObjectivesTo create an upbeat market for flavored market in Indian metrosBecome the market leader with 80% market share of organized market in the flavored segment by leveraging the first mover advantageThe rationale behind the strategy and objectives set is driven by the following factorsTo achieve higher market penetration in bottled water segments. interchange to markets and/or target segments not previously identified.To accelerate growth in accordance with the forecasted growth rate of the bottled water category.To nurture the brand identity and get along brand awareness through increased advertising and sales promotions.The objectives outlined above are in conformance with the company mission We are in the business of refreshing India with our products, refreshing the market with new categories and refreshing ourselves through innovation .Market SegmentationThe dietary habits of busy city dwellers are gradually changing, with many giving in to convenient packaged beverages meals. There is a rising incidence of double-income nuclear families and growing numbers of single working men and women professionals with fast lifestyles means. These increasingly lack the leisure or skills to prepare elaborate Indian beverages like Jaljeera/Mint Water / Mango Water . Thus, while beverages may not be able to match the taste of home food, consumers are still attracted by its convenience, hygiene and with these generally proving major draws rather than just taste.City9500030405Mumbai10,74311,71312,28912,50312,709Delhi8,1989,54210,33610,61610,881Bangalore3,6904,1864,4834,5894,696Kolkata450045684581460604628Chennai40134184426043104340Hyderabad32853418348535263565Pune19302423273528392935Source National statistical offices, Euromonitor InternationalFrom the above data depicting the population rise in the target cities, it can be seen that the number of urban households in the major cities is about 1.72 million. If we consider the top 50 major cities in India this figure grows much higher.Double-Income nuclear familiesThis is an increasing urban phenomenon and is buoyed by the abbreviate of more and more couples choosing to have children much later in the marriage. With more women entering the workforce with increased focus on work life in urban areas, this trend is expected to continue. This segment is characterized by a fast paced life with little consideration for saving money.SinglesSustained economic growth and an increasing number of young professionals entering the workforce have seen a rise in the number of single member families in urban areas. one-year-old adults are finding BPO (Business Process Outsourcing) jobs an early introduction to earning money. This segment is characterized by people with a high disposable income, busy lifestyles and relatively lower culinary skills (in particular single wor king men). The early adopters seem to be the singles segment, where homemade training for one is not considered worth the time,Supermarkets see high sales value growthMiddle class Indians, with a credit card, or food coupons provided as part of their salary package have adopted organized food shopping. These shoppers are keen to take up special bulk purchase offers and deals. They also have the advantage of browsing in shops and choosing, without the intervention of the shopkeeper or salesperson. Increasingly, urban Indians are using both the local grocer and the supermarket. The groceries the preferred choice for basic food supplies and the supermarket for a wider choice of processed foods such as jams, pickles, sauces, juices and ready mixes. This is giving organized food retail high sales value growth, as these stores are selling higher volumes of value-added foods. Among the upper middle and wealthier classes, the current retail outlets are used for basic commodities as well, as there is a feeling that the private labels offer cleaner well-picked produce than the local grocer does. As a result, there is some amount of store loyalty, as customers prefer a particular chain.Marketing Implementation Action ProgramsThe entire merchandising program and the action plan execution is elaborated with respect to the 4 Ps in the section. We have done a consumer survey to better understand the marketing mixProductSheetal is a forward integrated product extension to the superbly successful Bisleri which has a market share of 16% in India presently. The sentiment is not new. We have historical evidences that Indian Maharajas drank water with Indian Herbs to stay healthy and fit.Adding herbs to drinking water has been in vogue in many separate of our country In Kerala, in most of the hotels jeera water is being served even today Our country has a rich herbal treasure like vettiver, athimathuram, vallarai, ginger, seeragam, brahmi, tulasi, nimbu, pudina, orange, amla, n arangi, hibiscus, samandhi, jasmine, etc.Thus consumers get a variety of flavours to choose from.So there would be many flavours but initial one would bePudinaJeeraStrawberryRaw MangoMedicinal herbsTal Mishri (for infants)The product will be marketed in 4 sizes 300ml small pack , 1 litre medium packs and 25 liter large packs.The shelf life will be of 90 days without refrigerationSizeQuantityRetail PriceSmall300mlRs 6Medium1 litRs. 18 giving25 litRs. 400PriceOne can sell their products as raw goods value added goods, goods bundled with services or goods dramatized with experiences. Given on a lower floor is the value addition that can be brought about in wheat by various levels of value add and the multiplication factor in price relevant with each value add.Value addition FlowPrice of 1 litre of water = 10rsPrice of flavors available in market (Rasna) = Rs. 4 some other material used like salt, sugar etc = Rs 4Price of preparing one liter flavored drink at house = Rs 18Our product priced at = Rs 18PlaceSheetal will only be sold in metros initially i.e. Mumbai, NCR comprising of Delhi, Noida and Gurgaon, Bangalore, Hyderabad, Chennai, Kolkata and Pune. This is primarily because the target audience of this product is concentrated in these cities. The distribution impart employed for Sheetal has to be multi-dimensional as it tries to focus on a wide class of people from young working singles to mothers. Hence the distribution take will come under 3 categories Super market chains like Big bazaar, Star bazaar etc For distributing to these chains, the proven sales and distribution channels of Parle will be leveraged.Local stores selling food items The stores selected will vary depending on the markets. In case of south India, the focus will be selling in the following category of outlets Retail outlets selling perishable food items like vegetables, milk etc These upcoming outlets are the initial form of organic stores in India. People who are looking for fresh perishable items target these stores.Confectionaries selling packaged food and snacks Bakeries are the coveted place for south Indians especially the metro class in south to grab a quick snack or a convenient packaged food.Kirana stores As both these kinds of outlets are non-existent in North, the selling will be through the neighboring kirana stores which form the ubiquitous neighborhood shopping point for the target audience.Collaboration with roadside ice plane vendors People eating ice-cream some time to quench their thirst. If flavoured water is available they may drink it and enjoy ice cream for its tasteKey AccountsRailways The IRCTC crack Rail NEER on the railways and along with those other drinks. Often the govt policy lead to ban of carbonated products. IRCTC can bank on this as a politically safe product promoting indianizationHotel Chains The hotel chains provide chef prepared welcome drinks most often than not these are not seen as very wholesome and not taken by c onsumer. The flavoured drinks would be readily acceptable by the consumerSmaller restraunts They will have thirst quencher extra apart from the usual carbonated drinksMarriage halls The concept of Jaljeera and Pudina drink is very popular in marriages in India. They are generally prepared handmade and the stall gets overcrowded due to large preparation time. This packaged flavored water is both convenient and healthyCaterers They get a ready to serve menu on their handPromotionFlavored water is being introduced in India for the first time. That is why Sheetal definitely has the first mover advantage in this new niche of the market. As the positioning of the product is such that it promises to let the thirst quenching qualities of water, with an essence of fruit and mint flavor, it will appeal to a wide variety of consumers from age group 10 to 60. Also its medicative benefits will make it most suitable for school going children (age 8-16) and also elderly people (age 55-70). As in this equatorial part of the world the summers are generally very long and hot, the demand for a thirst quenching medicinal beverage will definitely drive most of the sales for the year in that concentrated period in the year.As the concept of the product itself is very new, the product will require an extensive promotional program through multi channel, multi vehicle techniques. There is a need of aggressive promotional activity so as to create awareness among the consumers about the new product and go the values which the product offers.We have come up with following four key promotion vehicles which would be most effective in the current scenario advertSales promotion individualized sellingSponsorshipAdvertisementThis is the most important mode of communication we would use. Following are the various tools we plan to use videoWe will advertise on different primetime channel like Zee, sony, star etc. The programs will be mainly family and children programs and the timing will b e family display timingRadioVarious FM Channels like radio One, Radio City Red FM etc will be used to place innovative ads in the morning and evening hoursNews printNewspaper dailies like TOI, Hindu, ET etc will be used to carry out ad bm in sizes varying from 200200 ads to full page ads on weekendsMagazineMagazines like India today business week etc will be targeted to convey the values to the targeted audience. notice BoardMajor city crossroads will be covered under this promotional scheme to carry Posters of the products, and snapshots of the television ads to generate recallwandering and internetThese are very new channel in advertising are found to be pretty effective among the young generation of the country. tender networking sites like face book, orkut, twitter, etc can be used to carry out promotions.Sales PromotionThis is just a backup for the failure of advertisement strategy. In this case several small retailers in small towns will be provided certain margin which th ey can utilize to push customer to try out the new product on the need basis. Well set some targets for the retailers to achieve at the end of each month and would reward the successful retailers.Personal SellingWill be putting up stalls and counters in colleges universities, malls and shopping centers. Will distribute free samples and conduct taste drives in cities to make people aware of the product. Will carry out online contest and get feedback from the customers.SponsorshipSheetal will be promoted by sponsorships of various national and international events, both in the sporting and cultural light this will create visibility of the brand and will expose the brand to a wide audience. Well put up stalls in the event areas and distribute free sample to the consumers. We also plan to get the brand endorsed by celebrities and famous personalities to build brand enter among the consumers.Annexure 1 PROFIT CALCULATIONThe 1st quarter sales target and the 1st year sales target from dif ferent metros are given below CityQuarterly sales revenues yearbook sales revenueBangalore5,00,00,002,00,00,000NCR5,00,00,002,00,00,000Mumbai5,00,00,002,00,00,000Chennai25,00,001,00,00,000Hyderabad25,00,001,00,00,000Pune125,00,005,00,00,00Kolkata125,00,005,00,00,00Projected RevenueProjected quarterly revenueRs. 2 croreProjected annual revenueRs. 8 croreProject annual sales volume44 lakhs litreProduction CostCost of goods sold/kgRs. 12Annual equal of goods soldRs. 4,80,00,000Packaging expenses/kgRs. 0.50Annual packaging expensesRs. 20,00,000Yearly fixed cost componentRs. 50,00,000Total production expenditureRs. 5.5 croresSelling ExpenditureAnnual advertisements and promotionsRs. 1 croresAnnual Salesmen commissions (2% of sales)Rs. 48 lakhsSlotting fees in first yearRs. 52 lakhsTotal selling expenditureRs. 2 croresTotal Expenditure = Production cost + selling costGross Annual Profits = Revenues ExpenditureTotal ExpenditureRs 7.5 croresGross Annual ProfitsRs. 50 LakhsAnnexure 2 Quest ionnaire1 .Do you drink Tap water or mineral Water for daily use?Tap 100 %Mineral 0%2. How often do you drink mineral Water?Daily 0 %Outings 70 %Occasions 100%3. How many glasses of water you drink dailyLess than 6 30 %6- 8 50 %More than 8 30 %4. You drink Mineral Water BecauseHygiene 50 %Taste 10 %Brand conscious 20 %5. You dont drink mineral water becauseCostly 50 %Dont feel any difference 10 %Has Water purifier at home 40 %6. You drink which mineral water brand?Aquafina 20 %Kinley 50 %Bisleri 20 %Others 10 %7. Have you ever tasted flavored mineral water?Yes 10 %No 90 %8. If flavored mineral water is introduce in market do your buy it?Yes 70%No 30 %9. Will you prefer flavored mineral water over ordinary?Yes 30 %No 20 %They are different 50 %10. Flavors you likePudina 30 %Jeera 50 %Strawberry 10 %Other 10 %11. What price you are willing to allowance for 1 litre12 -15 20 %15 -18 60 %18 -20 20 %12. You see flavored water as alternative of1 Carbonated Soft Drink 30 %2. Lassi 10 %3. F ruit Juice 20 %4. Homemade jaljeera 40 %