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Global Business Assignment
Global Business Assignment
Business
Topic: Water Filtration
SUBMITTED TO: PROFESSOR DR ZARGHAM-ULLAH KHAN
SUBMITTED BY: E18MBA064 BAKHTAWAR AKBAR
E18MBA067 ALISHA SHAFIQ
E18MBA005 RABBIA SALEEM
E18MBA030 AMMARA SHAHID
E19MBA046 SAIRA NADEEM
SEMESTER: 7TH
SECTION: A
SPECIALIZATION: INTERNATIONAL TRADE
•
TABLE OF CONTENT
EXECUTIVE SUMMARY
PRODUCT INFORMATION
PRODUCT DESCRIPTION
MARKET AUDIT AND COMPETITIVE MARKET ANALYSIS
MARKETING OBJECTIVE
SALES PROMOTION
MARKET SEGMENTATION
COMPETITOR’S ANALYSIS
RESOURCE REQUIREMENTS
EVALUATION OF THE PRODUCT IN THE INTENDED
MARKET
PROMOTION AND ADVERTISEMENT
Clean Water Solutions
Vision
To create a water
filtration system from
common materials.
Mission
Providing a complete range of
certified & high-quality water
filtrations system. These include
spare parts as well as the variety of
RO plants.
EXECUTIVE
SUMMARY
• Half of the world’s hospital beds are occupied by patients suffering from a
water-related disease.
• For children under five, water borne diseases is the leading cause of death.
• Every 15 seconds, a child dies from a water-related disease.
• Every 15 seconds, a child below 5 years of age dies due to diseases caused
by unsafe drinking water.
• 75% of the rural population in Pakistan does not have access to safe
drinking water. 80% of diseases and 33% of deaths are caused by unsafe
drinking water.
• After analyzing the market we have found out that there is a huge market
opportunity in pakistan for water purifiers. The water purifier market is
estimated to grow at the rate of 25% to 28% annually. There is huge
competition from multinational firms who entered in this field to capture
the market share.
Business Objectives
• To develop a one stop online hub for all residential need in regard of the water treatment industry,
systems, filters & all required spare parts
• To introduce the online business of water treatment certified & high-quality filters and spare parts.
• To market products to top channels of Pakistan.
• To increase the amount of finance for finance
• An objective is to initiate business operations in Pakistan.
• This business will also look to gather human resource for marketing the business product.
• The primary objective is to sell water treatment filters and system online in the Pakistan.
• The business will focus on the online existence as an off-line presence will not be targeted.
• The water treatment filters and spare parts are the most important part of the filtration system.
• The customer requires these services for updating and changing the filters and spare parts for
treatment plants on regular and weekly intervals.
PRODUCT INFORMATION
• Clean Water Solution is a unique and innovative water purifier.
• Requiring no energy or running water to operate, the replaceable filter based
product, which is entirely portable and based on low cost natural ingredients.
• It produces clean and safe water without using electric power or running water,
which is often not available in rural areas.
• The cartridge bulb is packed with a purification medium which has the capability
to kill bacteria and disease-causing organisms.
• The new Clean Water Solution water purifier can purify up to 3000 litres of water
after which the cartridge stops water flow.
• The water purifier gives the user enough lead time for cartridge replacement. The
new Clean Water Solution water purifier will cost around Rs.1,000. The purifier
will cost Rs.999 and its Cartridge with cleaning material will cost Rs.299.
KEY FEATURES OF THE PRODUCT
• Turns your water storage container into purifier-magically!
• Makes water purification available to anyone, anywhere
• First ever unbreakable bodied purifier
• Unbelievably affordable price at jus Rs.999
• Comes with the patented bulb, thus carries the performance guarantee
• High on convenience
• No electricity needed
• Comes in attractive color options
PRODUCT
DESCRIPTION
WEIGHT: 3 kgs
HEIGHT: 572 mm
WIDTH: 300 mm
DEPTH: 282 mm
MATERIAL OF CONSTRUCTION: Food grade, non-toxic,
engineering plastic.
TOTAL STORAGE CAPACITY: 18 litres( 9L+9L)
MARKET AUDIT AND COMPETITIVE MARKET ANALYSIS
• EXPECTED SALE: The main objective of this marketing plan is to increase sales. Our
expected sale in three year from India is Rs. 10 cr. First year we expected work with 75% capacity of
production second year we expected work with 90% capacity of production and third year we expected
work with 100% capacity of production.
• EXPECTED PROFIT: Basically service oriented companies set the price according to their
operation structure such as how much they are spending on warranty period, production cost, distribution
cost, factory overheads and selling and advertising expanses. After analyzing all these cost they add profit
according to their strategy such as if they want to become price oriented where their price will be less than
competitor price then organization will set low profit because they want to make profit by selling more
volume of products. We are using same strategy where we will set only Rs. 175 profits in after that we are
looking towards more profit margin than first year.
MARKETING OBJECTIVE (CON’T)
• PRODUCT ADAPTATION: We will also customize our product and service according to
need and demand in the market such as if any customer want more than one year warranty then we will
provide him but we will charge him extra money.
• COMPETITION: Most of the companies which have strong presence in the Pakistani water
purifier market are Aquafina’, Unilever’s Pure , Nestle etc.
SALES PROMOTION
• In the last decade, organizations had been spending huge amount of their
promotion budget on advertising.
• But now due to increase in the competition and change in technology many
marketers have realized that there are many others effective and cheaper means
of promotion by which company can promote their products more effectively.
• Many companies are developing fully integrated marketing programs that
include consumer and trade promotions.
• Sales promotion is a very effective short term incentive to encourage customers
to purchase the products.
• By the help of trade show, special offering such as free home delivery, free
service we will try to increase our sale.
Personal Selling
Personal selling is one of the most important
variance for water purifier industry. Most of
the organization is using it to increase the
sales and aware the consumer about the
product. In this process, a salesman from
company directly will come to meet
consumers where he will educate consumers,
aware them about the advantage of the
products and persuade them to buy the
products.
Retailers:
For retailing, we intend to put our
products into various small and big retail
stores wherein our wholesalers would be
in direct contact with our retailers and all
the business dealings would be done
through this channel only.
Method of
operation for
each type:
The main method of operation will be by
providing incentives or commissions on
product sold. Beyond that for the display
of the product in conventional stores as
minimum one time payment is made to
the Shop keeper. No Credit policy is
planned for the initial launch.
Scale of
Operation for
each type:
The scale of operation planned is large.
The main entry into the market is via an
awareness program which highlights the
importance of usage of unadulterated
water and also how “Clean Water” as a
product can bring in the difference. The
main USP is the price
Wholesale
market:
Pakistan has a large number of wholesale
and retail distributions. The strategy that
“Clean Water Solutions” is going to adopt
is that to have one main wholesaler who
has got the maximum reach in the country
and then tie up with the wholesaler for the
distribution of the product.
MARKET SEGMENTATION
We have segmented our market on the basis of income and geographic. We will
position ourselves in the market as new technology, affordable and good quality
(value for money) product
• INCOME: We segment the market according to income level also because Clean Water
Solution is the world’s cheapest water purifier, does not require electricity consumption and is easy
to store. The target segment on the basis of income is lower middle class and middle income earning
group in Pakistan.
COMPETITOR’S ANALYSIS
• Importance of understanding competition: When a company launches its product in the
market, it tries to position its brand uniquely among other brands present in the market.
• It is critical to understand the strengths, weaknesses, opportunities and threats of each of those competitors along
with the industry structure itself.
• This knowledge is important because it’s the competition that helps us to own the unique benefit in our customer’s
mind that our competitors‟ have not addressed and cannot easily address in the future. In our case it is pricing.
• Knowing about the competitors and their profile will help the concerned organization in knowing its weaknesses that
it may exploit.
• A detailed profile of the competitors, helps an organization in getting an in depth description of the competitor’s
background, its unique selling proposition, financial condition, its strategies, the products and the market share. In
our case, our main competitor is Canon and Aquafina.
• Competitor’s products: Most of the companies which have strong presence in the pakistan water
purifier market are Canon‟ Aquafina, Unilever’s PureIt,, Philips etc.
COMPETITOR’S ANALYSIS (CON’T)
• Competitor’s prices: In order to the market segmentation, our product is design for the
lower income segment which is 79% of total population of Pakistan. In this segment, if we compare
our product with competitor’s product, our product is the cheapest (Rs.999) water purifier in the
market. Our nearest competitor is Canon and philips and their cost is much higher than ours, which
is above to Rs. 2000 .
• Complexity: People should have knowledge about product before using it then only they can use the
product in proper manner. There is one complexity which can be faced by us that is to educate people about
how to use our products, when to change the filter net and plate and other technological products.
• Trail ability and observe ability: Our product can be purchased and used at minimal
social and economical risk because it will be wildly available in the market and we will sell it by direct
marketing and personal selling where we will send our employees to set up the purifier. There will be only
one risk and that would be use of the product. We have to educate people to minimize this risk and train
them to use successfully.
PROMOTION AND
ADVERTISEMENT
Promotion Mix