Unity University, Keranyo Campus

Department Of Business and Economics

Strategic Marketing Management Group Assignment

Group Members

1.Aimen Mohammed………………………. 00821R

2.Abdulhamid Mohammed………….………00328R

3.Bethelhem Dawit…………………….…..…00756R

4.Samiya Muzemil…………………...….……006564R

5.Semir Mohammed………………….….……00479R

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Table of Content

Executive Summary……………………………………………………………….. 1

Company Analysis……………………………………………………...…………...2

Market Analysis ……………………………………………...……………….……..4

Objective and goals…………………………………………………………………..6

Budget and Timeliness………………………………………………….……………7

Finance Analysis………………………………………………….…………………..8

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Marketing plan of Top Water

1. Executive summary:

Top Water is a premium bottled water brand that offers high-quality naturally sourced water to
customers throughout Ethiopia. The brand has been in operation for several years and is known
for its purity, taste, and health benefits.

The company's mission is to deliver a superior natural water source to meet the hydration
demands of Ethiopian customers, with a strong commitment to community, environmental
protection, and a meeting of health and lifestyle needs. The natural purity and quality of the

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brand have allowed it to thrive, positioning itself among the popular premium water brands
available on the market.

Top Water's marketing strategy incorporates the "four Ps" of product, price, promotion and
distribution, with a strong focus on product differentiation by highlighting the quality and
naturalness of its water sources. The pricing model carefully balances quality and affordability,
to appeal to a wide range of customers. Precise targeting enables promotion and advertising
spend to reach the intended audience, with a primary focus on brand awareness, loyalty and
advocacy building, coupled with initiatives that support environmental stewardship and social
responsibility.

The brand applies a multi-channel distribution approach, ensuring its water is accessible to both
retail and commercial sectors, including local cooperative enterprises, supermarkets and online
ordering platforms. As a result, Top Water has been able to establish a strong footprint
nationwide, catering to the needs of various customers across the country.

Key insights derived from marketing data and metrics help inform the optimization of Top
Water's marketing initiatives, which include fine-tuning products and services, strengthening
partnerships, and improving customer services that align with the brand’s goals of growth and
market leadership.

Top Water has achieved excellent market positioning and growth in Ethiopia, by leveraging on
quality and compelling branding, and its commitment to customer service, community
contribution, and sustainable operations to build consumer trust and loyalty, and develop a strong
reputation for itself.

2. Company Analysis:

Analysis of Top Water in Ethiopia:

Strengths:

A. Quality and Naturalness: Top Water is known for its premium quality, purity and naturalness,
setting it apart from other water brands in Ethiopia.

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B. Wide Market Reach: Top Water's distribution strategy is multi-channel, with a presence in
retail stores, supermarkets, and online ordering platforms, ensuring that customers can access the
brand's product anywhere.

C. Strong Community and Environmental Focus: Top Water shows a commitment to

environmental sustainability and social responsibility through sponsorship of local events, and
partnerships with local cooperative societies to increase community engagement and economic
contribution in the regions of operation.

D. Strong Brand Identity: Top Water has established a strong brand identity that emphasizes
premium quality, trust and naturalness in its water sourcing, health and lifestyle messaging that
has resonated with the target audience and improved brand recognition.

Weaknesses:

A. Relatively High Prices: Top Water is among the premium water brands in Ethiopia, with
prices that may be prohibitive for customers who are price-sensitive.

B. Reliance on Imported Materials: Top Water is imported in PET (polyethylene terephthalate)

bottles. Frequent use can pose environmental challenges, and there are potential issues related to
the safety of plastic packaging.

Opportunities:

A. Brand Expansion: Top Water can explore expanding the product offerings and introduce other
value-added products beyond just bottle water. Examples of this include offering a glass bottles
instead of plastic or introducing flavored water with other natural ingredients.

B. Geographic Expansion: Top Water can create a geographical footprint beyond its current
regions of operation to offer access to communities beyond where it already has reach.

C. Partnerships and Co-branding: Top Water can strengthen its associations with respected local
and international brands, increasing its brand visibility and driving sales.

D. Continued Innovation of branding strategies: Top water can develop and focus more on
highly targeted campaigns that resonate deeply with their target market, utilizing the latest

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technologies and platforms to create highly-personalized campaigns that drive awareness and
engagement of the brand.

Threats:

A. Competition: There are other local and international bottled water brands that could seize
market share by cutting prices or offering different water quality and sources.

B. Market Instability: Ethiopia has a history of economic and political instability, which may
negatively affect businesses, operations, and sales. Top Water must navigate and prepare for
potential challenges associated with any such disruptions.

Top Water competes in a highly competitive market, with established challenges and an audience
sensitive to price, the brand has been able to differentiate itself through its strong commitment to
quality, environmental sustainability, and community engagement. With a strong brand identity
and growth opportunities, the business has great potential for further expansion and market
growth.

3. Market Analysis:

Market analysis of Top Water in Ethiopia:

A. Market Size: The market size of the bottled water industry in Ethiopia is growing. According
to a report by the Ethiopian Chamber of Commerce, in 2019, the industry's estimated value was
7.5 billion birr ($199.8 million). Despite growth, there is a relatively low per capita consumption
rate of bottled water, there is a lot of room for market growth and expansion.

B. Market Segmentation: The Ethiopian bottled water market is segmented into retail,
commercial, and institutional customers. The retail segment represents the largest share of the
market, driven by increased demand from urban areas. Institutional customers such as schools,
hospitals and government agencies, present additional opportunities for growth.

C. Competitor Landscape: Top Water competes with other local and international bottled water
brands, some high-priced brands and bulk water companies. Major competitors include
Abyssinia Springs, Dashen Spring Water, Yes Brands, Tesfa, and Aqua Safe. Competition in

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lower priced bulk water options and untreated sources pose some risk to declining demand from
that customer segment.

D. Consumer Trends and Preferences: Increased urbanization, changing lifestyles, and health
awareness among the population, have facilitated growth in the bottled water sector. There is
growing demand for products that are healthy, natural, and have an eco-friendly footprint, thus
creating a trend for local and sustainable sourcing.

E. Marketing Strategies: Marketing strategies focus primarily on brand awareness through

advertising, quality and product differentiation, and community engagement. Top Water's strong
branding and visibility through promotion and sponsorships likely improves brand equity and
preference.

F. Distribution Channels: The Ethiopian bottled water market is distinguished by the

accessibility and availability of retail, supermarket and online ordering. Top Water has a strong
presence in both retail and online platforms, with innovative plans to strengthen collaborations
with regional co-operative societies.

Despite the presence of competitive brands, Ethiopia's bottled water sector presents attractive
growth opportunities, particularly as more consumers become health-conscious and receptive to
delivering quality products. Top Water's strength lies in branding and the development of local
sustainable sourcing strategies, and promotional events, amongst others, to build customer
loyalty and market share.

4. Objectives and Goals:

Here are the objectives and goals of Top Water in Ethiopia:

A. Deliver High-Quality Water to Customers: The primary goal of Top Water is to ensure that
customers have access to high-quality water sources that are pure, natural and free from
contamination.

B. Expand Brand Awareness: Top Water aims to expand brand awareness, recognition and trust
in Ethiopian regions as a premium bottled water, emphasizing quality, taste, and health benefits.

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C. Achieve Financial Stability: Top Water seeks to achieve long term financial sustainability
through strong sales growth, cost optimization, and operational efficiency.

D. Develop a Strong Distribution Network: The company aims to expand its distribution network
to ensure customers can easily access the brand's water sources and to generate more sales.

E. Foster Environmental Sustainability through responsible packaging: Top Water is committed

to environmental responsibility through sustainable packaging and promoting the conservation of
ecosystems and natural resources..

F. Develop Relevant Partnerships: Top Water aims to build strong partnerships with local and
international entities to expand its customer base and create opportunities for partnership and
growth.

G. Build a Strong Corporate Social Responsibility Presence: The company wishes to be

recognized for its community support through Corporate Social Responsibility (CSR) initiatives,
encouraging community participation for socio-economic development.

Top Water's objectives and goals are driven by a strong ideal of natural purity, environmentally
responsible practices and community contribution. These targets align with the company's
greater objectives of creating a successful, sustainable and socially responsible business model in
Ethiopia.

5.Budget and Timelines:

Budget and timing consideration of Top water

Budget:

Top Water's budget will depend on various factors, including their objectives, target market, and
anticipated revenue. Some areas of budgetary consideration may include production costs,
distribution and logistics costs, marketing and advertising expenses, salaries and other overheads.
Top Water growth and expansion strategies will influence the budget allocation towards
Research & Development (R&D) and engineering efforts to improve efficiency and product
quality.

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Assuming Top Water has sales of 100 million birr and targets to capture 20% of the Ethiopian
bottled water market, its budget could look like this:- Production Costs: 30 million birr-
Overhead Costs: 10 million birr- Marketing and Advertising Expenses: 20 million birr- Salaries:
25 million birr- Expansion and Growth Strategies: 15 million birrTotal Budget: 200 million birr
do financial analysis

Timeliness:

Timeliness objectives relate to the critical timelines for business activities, which may include
launching new products, entering new markets, or meeting customer demand. Timeliness may
require businesses to manage their resources and activities efficiently, respond promptly to new
or changing conditions, tracking progress and adapting strategies, milestones, and efficiency
measurements as they move forward. Timeliness also requires businesses to be adaptive to
changes in technology, economic, and policy-related fluctuations in the market, directly
influencing their performance outcomes.

If Top Water planned on launching a new flavored water product in Ethiopia, assuming it usually
takes three months to develop a product concept, test and pilot, the timeline could look like this:

- Month 1: Concept Development

- Month 2: Testing and Piloting

- Month 3: Marketing and Advertising Campaigns to Launch Product

However, in Ethiopia, power outages, regulatory procedures, and bureaucratic processes can lead
to delays which would have to be factored in.

The specific budget and timing considerations of Top Water in Ethiopia are not known, however,
the above examples illustrate the budgets and timelines that may be necessary for a business
operating in Ethiopia.

Budget and timeliness are critical for businesses like Top Water in setting new timelines and
budgets, adapting to internal and external factors vital to a successful outcome. It is important to
note that the detailed budget and timeline considerations of Top Water in Ethiopia are not

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publicly available, and its budgets and objectives will depend on several factors specific to the
business.

6. Finance analysis

Assuming Top Water has sales of 100 million birr and targets to capture 20% of the Ethiopian
bottled water market, its budget could look like this:- Production Costs: 30 million birr-
Overhead Costs: 10 million birr- Marketing and Advertising Expenses: 20 million birr- Salaries:
25 million birr- Expansion and Growth Strategies: 15 million birrTotal Budget: 200 million birr
do financial analysis

Based on the given information, here is a financial analysis for Top Water in Ethiopia with a
budget of 200 million Birr:

A. Revenue: Assuming Top Water captures 20% of the Ethiopian bottled water market and has
sales of 100 million Birr, its annual revenue is projected to be 500 million Birr.

B. Cost of Goods Sold (COGS): With a budget of 200 million Birr, production costs are expected
to be 60 million Birr for Top Water.

C. Gross Profit: Gross profit is calculated by subtracting COGS from revenue, so Top Water
should expect a gross profit of 440 million Birr (500 million Birr - 60 million Birr).

D. Operating Expenses: Top Water's operational expenses are anticipated to be 100 million Birr
(10 million Birr + 20 million Birr + 25 million Birr + 15 million Birr + 30 million Birr for future
growths) to fund overhead costs, marketing and advertising expenses, salaries, and expansion
and growth strategies.

E. Net Profit: Net profit is calculated by subtracting the operating expenses from Gross Profit.
Therefore, Top Water's net profit is projected to be 340 million Birr (440 million Birr - 100
million Birr).

6. Return on Investment (ROI): ROI calculates the returns earned from investments made. In this
case, Top Water has a return on investment of 170% (340 million Birr profit/200 million Birr
investment).

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F. Cash Flow: Maintaining a positive cash flow is essential to the success of any business.
Assuming that Top Water can obtain prompt payment after sales and suppliers provide payment
on terms equivalent to average annual inventory holding while cash is disbursed immediately to
pay for production costs, advertising expenses, and employee payroll, the company is likely to
have a positive cash flow.

Top Water's financial analysis in Ethiopia shows that with a budget of 200 million Birr, the
company is projected to experience a net profit of 340 million Birr. Therefore, Top Water can
invest in more efficient production, marketing and advertising efforts, hiring skilled staff, and
sustainable growth strategies to increase revenue and profits further. By maintaining positive
cash flow and a high ROI, Top Water can achieve long-term success in the bottled water market
in Ethiopia while expanding its business.8. Evaluation and Control:

We will use analytics tools to track website traffic and conversion rates. We will also monitor
social media engagement and track the success of influencer marketing efforts. Regular progress
reports will help us evaluate and make any necessary adjustments to our marketing plan.

9. Conclusion:

Top Water is a premium bottled water brand that offers high-quality naturally sourced water to
customers throughout Ethiopia. The pricing model carefully balances quality and affordability, to
appeal to a wide range of customers. Key insights derived from marketing data and metrics help
inform the optimization of Top Water's marketing initiatives, which include fine-tuning products
and services, strengthening partnerships, and improving customer services that align with the
brand’s goals of growth and market leadership. Overall, Top Water has achieved excellent
market positioning and growth in Ethiopia, by leveraging on quality and compelling branding,
and its commitment to customer service, community contribution, and sustainable operations to
build consumer trust and loyalty, and develop a strong reputation for itself.

Frequent use can pose environmental challenges, and there are potential issues related to the
safety of plastic packaging. Overall, while Top Water competes in a highly competitive market,
with established challenges and an audience sensitive to price, the brand has been able to
differentiate itself through its strong commitment to quality, environmental sustainability, and

11
community engagement. With a strong brand identity and growth opportunities, the business has
great potential for further expansion and market growth.

Despite growth, there is a relatively low per capita consumption rate of bottled water, there is a
lot of room for market growth and expansion. Institutional customers such as schools, hospitals
and government agencies, present additional opportunities for growth. In conclusion, despite the
presence of competitive brands, Ethiopia's bottled water sector presents attractive growth
opportunities, particularly as more consumers become health-conscious and receptive to
delivering quality products. Top Water's strength lies in branding and the development of local
sustainable sourcing strategies, and promotional events, amongst others, to build customer
loyalty and market share.

Top Water's budget will depend on various factors, including their objectives, target market, and
anticipated revenue. The specific budget and timing considerations of Top Water in Ethiopia are
not known, however, the above examples illustrate the budgets and timelines that may be
necessary for a business operating in Ethiopia.

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