Marketing plan for indian bottled water company

Marketing object for indian bottled body of pissing conjunctionThis commercializeplaceing plan is a give way of a larger business plan that the team thought of during foregoing discussions. The idea of introducing flavored peeing in the merc overstepise emerged from the Indias urban residents argon bonnie increasingly health conscious. In fact, Off-trade constant grade gross revenue of bottled water atomic number 18 predicted to grow by an 18% CAGR over the forecast closing curtain 2009 and 2014(source Euromonitor).FMCG players have responded by re-examining their ingredient strategies and formulations to ensure that they suit untested tidy habits. Urban consumers are increasingly on the hunt for substitute for carbonate drunkenness creating new fodderstuff opportunities for an array of suppliers.The current flavored water market is highly un organised with major manufactures being in-house chefs and roadside vendor. They supply to local anaesthetic hotels, swe et shops and are now slowly moving into supplying to organized retailers.We recommend the Indian Parle a FMCG giant to venture in the untapped flavored market to stand by first instrument advantage in India. The realized AquaFina post lavatory be utilise to launch the harvest-time. The end consumer is from 0 80 years as water is meant from infant to everyone. There is an prospect to position and offer premium and differentiated water in India today. peeing has to be scaled higher in terms of positioning approximately(prenominal) from functionality perspective, as well as from a lifestyle perspective.Key statistics of the Indian bottle water marketSituational AnalysisThe flavored market in India is sm entirely, further close to Rs 11 crore out of the total bottled water market of about Rs 1,100 crore. But many modest market fragments have been known to puff up with the entry of good results. 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 one thousand million and is the fastest exploitation beverage categoryThe 2009 India Soft Drinks Report indicates that change beverages consumption is declining in India for consecutive years since 2007. Packaged water step-up projections, however, are in excess of 40 per cent, with still drinks (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, charged as they are between Rs 10 and Rs 14 for a 1 litre bottle. The top end is predominate by imported betrays wish well GroupeDanones mountain water grade Evian and Nestles glister water brand Perrier, priced between Rs 80 and Rs 110 a litre. Himalayan woos Rs 25 a bottle. Flavored water falls in the mid-priced piece of the bottled water category.CompetitionCoca-Cola is expected to launch Bonaqua. Globally, Bonaqua sells sparkling flavored w ater 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 as well as looking to extend Himalayan into flavored water.PepsiCo too is believed to be planning to extend its bottled water brand, Aquafina, into flavored water. Nestle executives refused to comment. Aqua Montana India deep launched a carbonate niche drink, Slim and energy drink, Explode and is also looking to trade name a foray in the flavored water space. nodeIn terms of the socio-economic factors, Indian lifestyle is undergoing a massive socioeconomic change, which is also being reflected in viands habits. People want quantify for time, money in terms of quality and flesh. The scenario in India is alarming with delight in to increasing cases of corpulency. According 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 t otal population, and the percentage is growing rapidly.. The need to shift to good drinks from high-sugar containing beverages that cease be achieved with consuming flavored water is really important to falsify obesity.CollaborationParle hind end collaborate with the restraunts and wedding houses for placing it in their complimentary drink menuIt faeces collaborate with IRCTC to provide bottled water in railwaysIt can collaborate with airlines to place it in airports and provide it during travelParle can operate with the health care awareness committee exchangeable NHFS to highlight the vastness of shifting from high calorie drinks to low calories drinksChannelNo look 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 pig out all possible airMarketing ObjectivesAs suggested by the Ansoff offshoot Matrix, our strategy would be one of Product development and to some ce ssation that of Diversification. This would entail the followingIncrease the market share This can be achieved by a combination of competitive pricing strategies, advertizing, gross revenue furtherance and perhaps more resources dedicated to key account exchange address increased usage by potential customers, e.g. Introducing frequent buyer schemes, committedness schemesTo drive sales, we could also consider the followingInnovative mathematical product dimensions or packaging e.g. offering combo packs, family packs, increasing pack size.Proper mess up of distribution channels, e.g. making it available in up market supermarkets, kirana stores, confectionaries, canteens and railways and airlines divers(prenominal) pricing policies to attract different customers or create new market segments, e.g. large size packs could be change at prices the consumers deem economical. intro of niche segment variant like flavored water for infant -This whitethorn require the development of new competencies and communications immix accordingly.The plan deals with the changes that can be brought about to enwrap the new product, packaging, distribution, pricing and communications mix to ensure better awareness as well as begin a significant amount of the patsySince we are positioning the Sheetal as a healthy substitute for other beverages, the following excerpt from Euromonitor authorship on packaged foods strengthens the future prospects of this product.Health-based drinks have increased in respect in 2009. Capitalizing on the social acceptance of conspicuous consumption, so gigantic as health was not compromised, companies launched a wide array of products crosswise categories. Products highlighting health, such as energy bars and drinks, digestive biscuits, and better edible oils, all found ready takers, even as brands jostled for preeminenceFinancial ObjectivesTo achieve a crore plus sales in all of the 7 metros where the launch happens in the first quarter of l aunch. The metros where the product leave alone be launched are Bangalore, NCR, Mumbai, Hyderabad, Chennai, Kolkata and Pune.To break even within 3 living quarters and acquit profits by the end of first year of out branchThe detailed calculations can be seen in the fulfil chopine and writ of execution section.Marketing ObjectivesTo create an upbeat market for flavored market in Indian metrosBe get by 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. selling to markets and/or coffin nail 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 promote 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 crabbed city dwellers are gradually changing, with many giving in to favourable packaged beverages meals. There is a rising incidence of double-income nuclear families and growing amounts of single working men and women professionals with fast-paced lifestyles means. These increasingly insufficiency the leisure or skills to prepare elaborate Indian beverages like Jaljeera/ strickle body of water / Mango pissing . 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 slackly proving major draws rather than just taste. urban center9500030405Mumbai10,74311,71312,28912,50312,709Delhi8,1989,54210,33610,61610,881Bangalore3,6904,1864,4834,5894,696Kolkata450045684581460 604628Chennai40134184426043104340Hyderabad32853418348535263565Pune19302423273528392935Source National statistical offices, Euromonitor InternationalFrom the above data render the population rise in the point cities, it can be seen that the subprogram 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 trend of more and more couples choosing to have children much afterwards 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 scrimping money.SinglesSustained economic growth and an increasing number of unripened professionals entering the workforce have seen a rise in the number of single member families in urban areas. Young adults are finding BPO (Business Process Outsourcing) jobs an early introduction to earning money. This segment is characterized by pile with a high disposable income, busy lifestyles and relatively lower culinary skills (in peculiar(prenominal) single working men). The early adopters seem to be the singles segment, where home-brewed preparation 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 take organized food obtain. 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 two the local grocer and the supermarket. The groceries the preferred survival of the fittest for basic food supplies and the supermarket for a wider choice of processed foods such as jams, pickles, sa uces, juices and ready mixes. This is giving organized food retail high sales value growth, as these stores are interchange higher volumes of value-added foods. Among the upper middle and wealthier classes, the modern retail outlets are used for basic commodities as well, as at that place is a feeling that the hidden labels offer cleaner well-picked produce than the local grocer does. As a result, at that place is some amount of store loyalty, as customers prefer a finical chain.Marketing Implementation Action ProgramsThe entire marketing 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 reference work to the superbly successful Bisleri which has a market share of 16% in India presently. The concept is not new. We have historical evidences that Indian Maharajas drank water with Indian Herbs to stay healthy and fit.Addi ng herbs to drinking water has been in vogue in many parts of our country In Kerala, in more or less of the hotels jeera water is being served even today Our country has a rich herbal tea treasure like vettiver, athimathuram, vallarai, ginger, seeragam, brahmi, tulasi, nimbu, pudina, orange, amla, narangi, hibiscus, samandhi, jasmine, etc.Thus consumers get a variety of flavours to choose from.So there would be many flavours but initial one would bePudinaJeerastrawberry markRaw MangoMedicinal herbsTal Mishri (for infants)The product exit 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 bell elflike300mlRs 6Medium1 litRs. 18Large25 litRs. 400PriceOne can sell their products as raw goods value added goods, goods bundled with services or goods dramatized with experiences. Given below is the value addition that can be brought about in wheat by various levels of value add and the multiplication factor in price applicable with each value add.Value addition FlowPrice of 1 litre of water = 10rsPrice of flavors available in market (Rasna) = Rs. 4Other 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 channels employed for Sheetal has to be multi-dimensional as it tries to focus on a wide class of people from green working singles to mothers. Hence the distribution channels will come under 3 categories Super market chains like huge 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 southbound 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 thoroughgoing 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 cream vendors People eating ice-cream some time to quench their thirst. If flavoured water is available they may drink it and admire ice cream for its tasteKey AccountsRailways The IRCTC sever 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 uninjured product promoting indianizationHotel Chains The hotel chains provide chef prepared welcome drinks most a lot than not these are not seen as very well and not taken by consumer. The flavoured drinks would be readily acceptable by the consumerSmaller restraunts They will have thirst quencher extra apart from the common 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 collectable 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 decidedly has the first mover advantage in this new niche of the market. As the positioning of the prod uct is such that it promises to deliver the thirst quenching qualities of water, with an warmness 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 communicate the determine which the product offers.We have come up with following four key promotion vehicles which would be most stiff in the current scenar ioAdvertisementSales promotionPersonal sellingSponsorshipAdvertisementThis is the most important mode of communication we would use. Following are the various tools we plan to useTelevisionWe will advertise on different primetime channel like Zee, sony, star etc. The programs will be mainly family and children programs and the timing will be family viewing timing wirelessVarious FM Channels like radio One, Radio City Red FM etc will be used to broadcast advanced ads in the morning and evening hoursNews printNewspaper dailies like TOI, Hindu, ET etc will be used to carry out ad black market 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.Bill BoardMajor city crossroads will be covered under this promotional scheme to carry Posters of the products, and snapshots of the television ads to mother recallMobile and internetThese are very new channel in adverti sing are found to be pretty sound among the young generation of the country. Social 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 they can utilize to push customer to try out the new product on the need basis. good 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 uncaring 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 visibleness 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 renowned personalities to build brand image among the consumers.Annexure 1 PROFIT CALCULATIONThe inaugural quarter sales target and the 1st year sales target from different metros are given below CityQuarterly sales revenues one-year sales revenueBangalore5,00,00,002,00,00,000NCR5,00,00,002,00,00,000Mumbai5,00,00,002,00,00,000Chennai25,00,001,00,00,000Hyderabad25,00,001,00,00,000Pune125,00,005,00,00,00Kolkata125,00,005,00,00,00 throwed RevenueProjected every quarter revenueRs. 2 croreProjected annual revenueRs. 8 croreProject annual sales volume44 lakhs litre work liveCost of goods sold/kgRs. 12Annual cost 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 costAnnual 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 Questionnaire1 .Do you drink Tap water or mineral Water for fooling 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 % peck 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 pay for 1 litre12 -15 20 %15 -18 60 %18 -20 20 %12. You see flavored water as alternate of1 Carbonated Soft Drink 30 %2. Lassi 10 %3. output Juice 20 %4. Homemade jaljeera 40 %