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Global

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

• If an organization wants to make its product or service successful in a


particular country’s market, it should do proper market research such
as is there any demand or need of that product, which is target market,
which sources of advertising would be more effective to communicate
to customers, local competition, buying behavior and logistics
management.
• Base on that a company should make effective market plan then only it
can sustain in market for long time
• So we intend to adopt such strategies and prepare a marketing plan that
would help us to sustain in the highly competitive market of water
purifier.
MARKETING OBJECTIVE
• TARGET MARKET: Firstly, we will target the government where as we will persuade them
to buy our products by telling them the advantages that how can it is helpful to stop water disease and it is
also cheaper than other companies‟ products. Secondly we will target middle and low income level
customers. By the help of marketing plan, we would try to achieve our targets.

• 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

• GEOGRAPHIC SEGMENTATION: Initially the product will be launched on the


trial basis in metros. After this we would move ahead to tier 2 cities. The major targets then onwards
would be cities where municipalities and governments face problem in supplying clean and safe
drinking water.

• 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.

• Rational behind identifying the competitors: Analyzing the competitors is an essential


component of corporate strategy.

• 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 .

• Competitor’s promotion and advertising methods: In its promotional


and advertising strategy Philips is positioning its brand as an environmental friendly company and using a
combination of varieties such as direct marketing, event marketing and many CSR activities.
RESOURCE
REQUIREMENTS
Finances:
“Clean Water Solution” is new to the market so the finance is solely depended on
the sales of the product. The expectations are very realistic, which has been
concluded based on the research conducted in pakistan. Research will be
undertaken to compare and contrast potential credit facilities if more finances are
needed.
Personnel
The personnel requirements for the Water Purifier product are as follows.
The company consists of Sales and marketing department, finance and
administration, Human Resources department and Maintenance and Customer
care department
The main responsibility of all this head is to make sure company is moving
towards planned estimates of profit year on year, if required take corrective
actions and handle concerns and queries of stake holders in a country. Sales and
Marketing team is responsible to achieve the sales target and marketing
department objective is to make the life of sales department easier by proper
campaign and Advertising. Human Resource department will look after the well-
being of the employees and also to control employee activities. Finance
department to take care of budgets and other finance related activities. Customer
care and Maintenance department is to take care of customer queries and handle
water filet relater queries and maintenance activities.
Production
capacity

In the initial years we would be


working at 75% production capacity
which would be increased to 90%
and 100% during the next
consecutive two years keeping in the
mind the market demand.
EVALUATION OF THE PRODUCT IN THE
INTENDED MARKET
• Relative advantage and compatibility: There are many advantages by using
Clean water purifier over competitors and local players such as saving of electricity bills, Clean
water Solution available at low price; everybody can afford it and less water diseases.

• 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

• Today every organization spends billions of amounts


on advertising, sale promotion, direct marketing,
personal selling and sponsorship.
• They establish a separate department which consider
only on marketing communication channel operation
because in present scenario spending on marketing
communication mix is considered as a long term
investment not as expensive which helps organization
to improve their turnover and goodwill.
• Integrated Marketing Communication are the channels
by which a firms inform, convince and sustain
consumers for a long time which help them directly
and indirectly to increase their sale and profit.
• Our promotion mix includes personal selling, trade
shows, demos to our potential consumers etc.
Advertising Mix
Advertisement is a paid form of
promotion of ideas, goods and services
by an identify sponsor. It is the cost
effective way to promote the products
and in the same way it is also highly
accessible means it is only the way to
reach out majority of the customers.
There are many sources for advertising
such as:
Print
Advertisement
Newspaper advertisement is one of the
easiest ways to convey the message to
majority of the customers. We will give
advertisement in newspaper where most of
the consumer can see our advertisement and
in the same way we will also tie-up with
famous branded and fashion magazine
where we will give pastors and calendars
where local celebrities will use our products.
Broadcasting
advertisement:
We will also use TV advertisement
because by visual ads we can show
how it is used and what the
advantages are by using it.
Radio
Advertisement
Radio has become a very effective
mean for advertisement as the reach
offered by radio is unmatchable.
Hence we also intend to advertise our
product through radios in local cities
as well as Internationally.

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