SULEMAN JAVED 2526

MUHAMMAD TAHIR 2532

ATIF JAMIL 2530
ABDULLAH AJAZ BUTT 2505
GROUP MEMBERS
WATER PURIFICATION
MARKETING PLAN
Executive Summary
Pure Life Cycle Industries, Inc. provides the service
of Water Purification for industrial reasons and
take advantage of an unsatisfied market need of
Pure Water on a portable basis.
The company will primarily focus market of
customers who require high-quality Pure Water for
their water treatment facilities.
The facility that Pure Life Cycle Industries will
utilize is located in Attock, Pakistan and is already
in limited production.
Revenue
Pure Life Cycle Industries will generate gross sales
of Rs17,88,000 in the first year, reaching Rs2.9
million in the second, and Rs4.2 million in the
third years.
Keys to success:
1. Good quality control in the factory.
2. Fast response.
3. High-profile allegiances.

Situation Analysis
Pure Life Cycle Industries as in its first year of
operation will purchased the assets of an existing
company.
The basic market need is for portable Water
purification units can be leased or purchased.
The market need for leases includes exemplary
service levels. This means that when a customer
undertakes a lease they are effectively leasing Pure
Life Cycle Industries as a service provider.

Market Summary
Pure Life Cycle Industries possess good
information about the market needs, this
information will be used to generate strategies to
better
understand
the customers, their specific
needs, and the most
effective ways to
communicate with them.


Market Needs
Pure Life Cycle Industries seeks to fulfill the following
benefits that are important to its customers:
Selection: Pure Life Cycle Industries posses high
potential to offer solutions to everyone.
Flexibility Pure Life Cycle Industries must be able to
work with each customer's individual needs.
Customer Service: Exemplary customer support is
required since purified water is such an important variable
for the customer's business.
Market Trends
One notable trend in industries is to outsource.
Then many large users of Pure Life Cycle
Industries will want to set up their own in-house
capacity, because the capital costs, maintenance
costs, and the costs of dealing with Water
Purification waste often make Water Purification a
more economical solution.
As now a days industries need high degree of
results in an ever-growing market for Life Cycle
Industries.


THE OVERALL EVALUATION OF COMPANY
STRENGTH, WEAKNESS, OPPORTUNITY
AND THREATS ARE KNOWN AS SWOT
ANALYSIS.
SWOT ANALYSIS
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 &Threats
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
Changes in technology that could effect companies that are
heavily invested in current 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
The user of pure life cycle industries has little choice
to find out the alternative.
It is Water Purification on a bulk basis only.
Good quality and low price.

Service Offering
There are no chemicals, nor regenerated waste to be
handled or concerned with on-site.
Ease of installation.
Space is another important factor. .
Carbon (used for pre-filtering).
The client does not have to incur substantial capital
costs to install an in-house Water Purification Plan.
The company also saves by not needing experienced
technicians to maintain an in-house plant.

Future Product and Services
Company plans to expand sales of filters and DI
cartridges.
Pure life cycle Industries also has plans to develop a
reusable shipping container for its smallest DI
exchange tank so that this can also be shipped via
UPS.
Pure life cycle Industries plans to offer service
contracts to maintain this equipment at the
customer's location.
This product will be marketed on a website, as well
as through conventional direct mail and yellow page
advertising.
Industry Analysis
The company has grown from Rs1 billion to over
Rs5 billion in the past six years
The industry for providing Water Purification
service is dominated by many small companies.
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. This equipment has
a sizable share of the water market at the end close to the
municipal water inlet.
Some industry participants are primarily engaged in water
softening and water filtration for 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 in private households, to large
companies involved in engineering, design, consulting,
component manufacturing, waste water treatment, etc.
Keys to Success
Good quality control in the factory. Customers
for high purity water have a very low tolerance
threshold for flaws.
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
expensive shutdown could result due to poor or slow
servicing.
High-profile allegiances. Key to overall company
success is connected closely with success in achieving
the goal of developing a dealership network of service-
oriented water companies.
Critical Issues

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

Pursue controlled growth that dictates that payroll
expenses will never exceed sales revenue.
PURE LI FE CYCLE I NDUSTRI ES' MARKETI NG
STRATEGY WI LL BE TO EXECUTE AND
COMMUNI CATE I TS VALUE PROPOSI TI ON OF
SERVI CE AND MARKET SEGMENTATI ON
ADVANTAGE I N PROVI DI NG WATER
PURI FI CATI ON FACULTI ES TO THE
CUSTOMERS. THI S WI LL BE EXPANDED ON I N
UPCOMI NG SECTI ONS.

Marketing Strategy
Mission




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

Marketing Objectives

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

Hospital Dialysis Units

Electronic Manufacturers

Machine Tools and Parts

Other
Positioning

Pure Life Cycle Industries' ability to regenerate Pure
Water on For Specific basis, rather than only bulk, is
a capability that should provide quick and easy entry
into the user market where the highest water purity
is needed.
The second most important position statement is
Pure Life Cycle Industries' concentration on the
Water Purification business. This concentration will
force Pure Life Cycle Industries to provide a higher
level of service, and more quickly, too..

Strategy Pyramids

Position itself as the premier service provider of
Water Purification equipment & quickly developing
market penetration.
Create customer awareness regarding the products
and services that Pure Life Cycle Industries offers.
Build a network of dealers that can assist Pure Life
Cycle Industries in the distribution.
Build a large foundation of satisfied, repeat
customers.

Marketing Mix

Pricing:
Pure Life Cycle Industries can charge a higher price
for its High Quality Pure Water.

Wholesale prices have been established to
encourage the quick formation of a dealership
network. Dealers are afforded a 33% discount.

Marketing Mix
Con
Distribution:
It will utilize a network of water service companies.
These companies will be carefully chosen for their
quality of service.

An arrangement will be set up whereby the
distributor will offer Water Purification service along
with its other water services.
A 33% discount off the retail price should be
adequate to satisfy the distributors.
Marketing Mix
Con..
Advertising and Promotion:
Promotion to Pure Life Cycle Industries end-users.
Promotion to wholesalers. Promotion to wholesalers should
receive primary stress due to the extended reach made possible by
the wholesaler network with its existing customer base.

The first method will be advertisements. The advertisements will be
placed in industry journals, not only the water purification industry,
but industry journals of the customers. This will help Pure Life
Cycle Industries develop brand awareness.
Another method of communication will be participation in trade
shows. Being a part of the trade shows is almost a requirement
these days and Pure Life Cycle Industries will have a significant
presence.
The last method of communication will be a roving sales force
whose task it is to set up a dealership network.

Marketing Mix
Con
Customer Service:
The customer's expectations must be exceeded,
always. The only way the company can succeed is if
they ensure all of the customer's needs are being met
and the customer leaves the transaction with the
feeling that they were truly appreciated.

Marketing Research

Pure Life Cycle Industries performed comprehensive
amounts of market research before the initiation of
these business plans. .
The owners were aware when they entered the
industry that at some point in the future they desired
to operate their own business instead of working for
someone else.
Financial Overview
Break-even point
The break-even analysis indicates that Rs55,686 will be
needed in monthly sales to match the 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 expected to be Rs24,000 monthly, exclusive of
rental revenue
Once the 80% capacity utilization level is reached (October
2012), unit sales will grow by 5% in year two and 5% again
in year three. This growth can be achieved within the
capacity limits of 100 cu. ft. daily (26,000 cu. ft. per
annum) without increases in production labor
Direct unit costs for years two and three remain at the level
of year one.

Rental Income
Half of all directly-generated sales will involve rental
tanks i.e. 534 cu
All rentals will be in 12 inch tanks holding 3.6 cu.
Rant Rs40 per tank
Total direct sales in October = 267 cu. ft
October will see rental income of Rs1,480


Tank Sales

Sales of tanks is assumed at only five percent of the
number of monthly rental tanks

Sales price of a tank Rs1,200

Cost of a tank Rs450



Marketing plans
Marketing Budget

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%

Marketing Activities
Advertising Start Date End Date Budget Manager Department
Marketing plan 1/1/2012 2/1/2012 RS0 Atif Marketing
completions
Ad campaign #1 2/1/2012 6/30/2012 Rs39,000 Atif Marketing
Ad campaign #2 7/1/2012 12/30/2012 Rs57,500 Atif Marketing
Trade show #1 3/1/2012 3/15/2012 Rs6,000 Atif Marketing
Trade show #2 6/1/201 26/15/2012 Rs9,000 Atif Marketing
Trade show #3 9/15/2012 10/30/2012 Rs10,000 Atif Marketing

Totals Rs121,500



Controls

Revenue: monthly and annual, performance
compared to planned sales projections.
Expenses: monthly and annual, compared to
planned expenses.
Research and Development: as a percentage of
revenue.
Customer Satisfaction: to result in repeat
purchases and generating active customer referals.

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