marketing plan final with compete ti on analysis

8/8/2019 Marketing Plan Final With Compete Ti On Analysis

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PROJECT MARKETINGMANAGEMENT

--AQUAFINA

DATE OF SUBMISSION: 6th

Sepetember 2010.

BATCH: B

SUBJECT: Marketing Management

FACULTY:Ms.Grishma S. Kulkarni

GROUP MEMBERS:

y Sonali Panchal

y Prashant Pandey

y Saket Pandit

y Anuja Parikh

y Chintan Patel

y Jimit Patel


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ACKNOWLEDGEMENT

We have taken great efforts in this project. However, it would not have

been possible without the kind support and help of many individuals and

organizations. We would like to extend our sincere thanks to all of them.

We are highly indebted to School of Pharmacy and Technology

Management for their guidance and constant supervision as well as for providing

necessary information regarding the project & also for their support.

We would like to express our gratitude towards our professor and guide,

Ms.Grishma Kulkarni for her kind co-operation and encouragement which help

us in the completion of this project. Without her, this report would not have been

possible.

Our thanks and appreciations also go to our colleagues who have helped us

in developing the project and people who have willingly helped us out with their

abilities.


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EXECUTIVE SUMMARY

The packaged drinking water industry in India is in the growth stage. A number of

leading players have emerged such as Bisleri, Aquafina, Bailey, and Kinley. There

are other significant players like Yes, Ganga, Himalayan and many others.

Foreign players in the local market such as Evian and Perrier also characterize the

industry. At present, the Indian market is also less organized and not much

branded.

In this context, the industry needs to be studied to find the structure in terms of

players, substitutes and others factors governing the success of leading players.

This report attempts to study the following:

Market StudyPackaged drinking water market in terms of major players in Inida, market size,

growth, and market shares of players.

Consumer Study

Consumer segments and their habits and practices also have been studied and

the importance of distribution network. Surveys have been done n order to find

out customer and retailers point of view.

Strategies

They have been developed to analyze the reasons for success and make a set of

best practices and strategies for the players. The company profiles also need to be

studied to be able to cross-compare and make decisions.

Along with the above, the research design and tools used are described.

The survey results are then interpreted discussed and concluded.


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Situational analysis

A.Industry Analysis:

Bottled water or the packaged water category, estimated to be over Rs

1,500 crore (not including the other smaller regional brands, which according to

the Bureau of Indian Standards are more than 1,800 in number), is "witnessing an

unprecedented amount of action."

In other words, domestic companies Parle, United Breweries, Tatas, DS Foods and

multinationals PepsiCo and Coca-Cola, the world's largest aerated drinks maker,

are all "battling for leadership" in the rapidly growing packaged water market in

India.

Bisleri (the current market leader) was the first-of-its-kind packaged water brand

in the country when it was launched in 1967. It is also noted that India was the

first market outside the US to have PepsiCo's Aquafina launched in 1999 when the

market was just beginning to grow.

The formal bottled water business in India can be divided broadly into threesegments in terms of cost

1. Premium natural mineral water: includes brands such as Evian, SanPelligrino and Perrier, which are imported and priced between Rs. 80 and

Rs. 110 per litre.

2. Natural mineral water: with brands such as Himalayan and Catch, ispriced around Rs. 20 a litre.

3. Packaged drinking water: which is nothing but treated water, is thebiggest segment and includes brands such as Parle Bisleri, Coca-Colas

Kinley and PepsiCos Aquafina. They are priced in the range of Rs. 10-12 alitre


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B. Market Analysis:

In India, the per capita bottled water consumption is still quite low - less than five

litres a year as compared to the global average of 24 litres.

However, the totalannual bottled water consumption has risen rapidly in recent times - tripling

between 1999 and 2004 - from about 1.5 billion litres to five billion litres.

Today, Parle Bisleri continues to hold 40% of the market share. Kinley and

Aquafina are fast catching up, with Kinley holding 20-25% of the market and

Aquafina approximately 10%. The rest, including the smaller players, have 20-25%

of the market share

.

The market Segmentation of

Bottled Water in India

Segment Share (%)

North 25

East 10

West 40

South 25

C.Company Analysis:

y Aquafina is a brand of bottled water. It was first distributed in Wichita,Kansas in 1994, and was distributed across the United States, Canada,

Turkey, Vietnam, Pakistan and India. As of 2003, it had become the UnitedStates top-selling bottled water brand in measured retail channels.

y Aquafina uses PepsiCos own purification system, which it calls HydRO- 7,that includes charcoal filtration, reverse osmosis and Ozona ion.

y PepsiCo states in marketing material that this system removes substancesthat maybe in other brands of bottled water.


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Pepsico produces several other products under the Aquafina label:

1. Aquafina Sparkling: carbonated flavored water, available in Berry Blast(Raspberry) and Citrus Twist.

2. Aquafina Flavor Splash: flavored water (without carbonation), andartificially sweetened with Scurrilous, available in Grape, Citrus Blend,

Wild Berry and Raspberry.

3. Aquafina Alive: a low calorie, vitamin-enhanced water beverage, availablein Berry Pomegranate, Peach Mango and Orange Lime.

4. Aquafina plus: is a low calorie, vitamin supplement water beverage,available in Blackberry Grape, Pomegranate Cherry, Passionfruit Citrus and

Orange Tangerine.

D.COMPITITORANALYSIS:

The packaged drinking water industry in India is mainly dominated by

the major players ie. Parle , Pepsi co. and Coca Cola

aquafina

10%

bisleri

64%

kinley

22%

others

4%

MARKET SHARE


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Bisleri which introduced packaged drinking water in the Indian market had

the first movers advantage and is still the market leader followed by PepsisAquafina and Cokes Kinley. Apart from the major players there are many small

manufacturers which sell in the tire 2 and 3 cities and most of rural India

Comparison of different pack sizes sold:

BRAND 1 ltr. 20 ltr.

BISLERI YES YES

AQUAFINA YES NO

KINLEY YES YES

BAILEY YES YES

COMPETITOR ANALYSIS

y Bisleri

The brand is a product of Parle International and presently is the market leader

with around 40% market share. The company pioneered the concept of bottled

water in the Indian market as early as 1967. The company has Stock-Keeping

Unit (SKU) of 500 ml, 1.2 liter, 1.5 liter and 2 liter in the Indian market.

Positioning: Playing Safe

Target Audience: Health and Hygiene conscious people

Personality: Guardian, Authoritative, Reliable

Punch Line/ Tag Line: Play Safe

USP: Pioneer advantage in bottled water industry, old player with a lot of

experience


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y Kinley

The brand was is a product of Coca-Cola. It was first introduced in May 2000 in

India.

Positioning: Safety and health oriented

Target Audience: Health and hygiene conscious people

Punch Line/Tag Line: Boond Boond mein Vishwas

USP: Belongs to the Coca-Cola group and has a good distribution network

y Aquafina

Along with a good distribution channel of 60,000 outlets, Aquafina has its

refrigerators at retail outlets which stock its cold drinks along with bottled water.

Initially Aquafina was available in just one pack- 750 ml and was priced at Rs .

10/-. Now they also have competing packages of 500 ml and 1 liter pack priced at

Rs. 6/- and Rs. 10/- respectively.

Positioning: Safety and Health oriented

Target Audience: Youth segment from 20-35 years of age

Personality: Trustworthy, Confident and Reliable

Punch Line/Tag Line: Purity Guarantee

USP: Belongs to the PepsiCo lineage, gains advantage from the vast

distribution and retail network


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y Bailey

The brand is a product of Parle Agro. The company has extended its Bailey

brand name for its soda water. It is also credited with forming a new segment of

330 SKU in the market.

E.Critical Issues:

A scan of the external macro-environment in which the firm operates can

be expressed in terms of the following factors:

Political

Economic

Social

Technological

The acronym PEST is used to describe a framework for the analysis of these

macro environmental factors.

Political Factors:

They include government regulations and legal issues and define both

formal and informal rules under which the firm must operate include rule and

regulation parameters of the following regulatory bodies:

a) BIS: Bureau of Indian standards

b) ISI: Indian Standard Institutionc) PFA: Prevention of Food Adulterationd) FDA: Food and Drug Administratione) Environmental Regulation


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Economic Factors:

y Economic Factors affect the purchasing power of potential customers andthe firms cost of capital.

y After increase in income people consume more as compared to the beforeso it increases consumption of bottled water and people also spend

money after their welfare. It increases the rate of spending money on

behalf of their primary need.

y The economic impact of bottled water consumption is especially relevantin developing countries like India , where tap water is often of poor

quality

y Some other economic factors are: Labor Cost Labor Workforce Exchange Rates

Social Factors:

1. Health Consciousness2. Population Growth Rate3. Emphasis on safety4. Lifestyle Trends5. Age Distribution6. Literacy Rate7. Career8. Culture


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Technological Factors:

Technological Factors can lower barriers to entry, reduce minimum efficient

production levels, and influence outsourcing decisions.

Some factors include:

Recent technological development

1. R&D activity2. Automation


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SWOT ANALYSIS

Strengths:

y It has a good back up from its parent company that is PepsiCo. So it canafford to invest huge funds in marketing and R&D

y It enjoys an excellent distribution structure of PepsiCo. in India.

y It has a good brand image and also benefits from the brand image ofPepsiCo.

y Quality of product is highly reliable and of highest quality.

y It enjoys monopoly in metropolitan and Tier-1 and Tier-2 cities along withBisleri and Kinley.

Weaknesses:

y Pricing is high for the common people.

y It is facing huge resistance from the local people and authorities, whereverits processing plants are located because these plants are very rapidly

exhausting the ground water resources of that area.

y Aquafina has virtually no presence in rural or economically backwardareas.

y Packaged drinking water is a market which is driven by avability and notby customer choice

Opportunities:

y It should introduce pouches to minimize costs and hence making it moreaffordable to common people.

y It should utilize the distribution facility of PepsiCo to reach to the rural andultimate customers.

y It should enhance its quality to establish itself in niche or premium market.

y Launch other products such as aquafina plus and alive to increase thecoustomer base

y Rising health consciousness among people


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Threats:

y Other Indian and international bottled water players, cola drinks, juices andbeverages, local brands and unorganized local water vendors.

y It is falling victim of cannibalization from its parent company as coladrinks are posing threats to its market share.

y Competition from other substitutes

y Large no of local competitors

Marketing strategy development

Segmentation:

The mineral water market is segmented according to the type of

customers:

y Foreign Tourists

Foreign tourists have been the main consumers of the mineral water

as they face a lot of digestion problems due to different food habits.

y Domestic TouristsDomestic tourists have switched to mineral water because of safety

and hygiene factors.

y Health/Fashion Conscious

Like soft drinks, drinking mineral water is also considered fashionable

by some people. Packaged drinking water till now was considered as a drink

for the rich people.

The mineral water consumer is mainly in the age group of 20-50 years and

is an educated middle class person.


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The mineral water market is also segmented along pack sizes:

y One liter bottle

This is meant to spell safety and security for consumers. It is

positioned on a prestige platform for the achiever segment- who like to

make a fashion statement by drinking mineral water.

This segment gets the

maximum sales.

y 500ml bottle

This size has been introduced in the market to target the individual

and local travelers.

y Polyethylene terepthalate (PET) bottles

This size of the PET bottles varies from 10 to 20 liters. These are

mainly for institutional sales or parties, weddings, hotels, corporate, etc.

The market can also be divided on the basis ofprice at which this packaged

drinking water is available. The categories are:

y Super premium mineral water

y Premium local natural mineral water

y Popular or packaged drinking water

Targeting

y Pepsi could mimic the other water producers and target women. But to

narrow the targeting even more, it could target the 20-35 aged, active, on-

the-go, health-conscious woman.

y In response to the concerns over teenagers drinking too many soft drinks, it

could position the drink as a substitute for soft drinks.

This would beproblematic for Pepsi but could be a complementary alternative.

y Another option would be to target the 20-35 year old, active, health-

conscious man who is on the go. This might position it against sports drinks

and Pepsis own Gatorade.


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y It could position it not as a sports drink but simply as a convenient source of

pure water for people on the go or in situations where good water was not

readily available.

y Pepsi has a difficult time finding a good position for Aquafina that makes

sense in terms of its other product offerings.

An Aquafina bottle doesnt mention Pepsi on the label so they could pursue a

multi-brand strategy

Positioning:

y Consumers already know about the product and the categorys success hasdemonstrated the primary demand for the product. The focus for

advertising objectives should be on persuading or on building selective

demand.

y Pepsi wants to build brand preference and encourage both new users and

brand switching. Persuasive advertising includes persuading customers to

purchase now, to receive a sales call, and convincing customers to tell

others about the brand.

y The first step in creating effective advertising messages is to decide whatgeneral message the company wants to communicate to consumers. This

flows from the positioning statement stressing the idea that the positioning

statement guides development of the marketing mix.

y The message should convey the products benefits and flow from a

creative concept. Pepsi problem arising because they are positioning the

product as nothing.

y If Pepsi wanted to target active people who drink water, a core benefit

could be summarized as Pure water.

Wherever you are.

Although thereare many pure positions, the author is stressing the convenience of bottled

water especially in out-of-the-way places. The stated advertising appeals

should be meaningful, believable, and distinctive.

y For message execution there are a number of different styles. Pepsi initially

used a slice of life style in depicting real people drinking Aquafina. If


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this were the case then selecting lifestyle ads that depict active people

using the product in unusual places is a good method.

Marketing mix

marketing mix focuses on 4 ps price place product promotion..A crucial decision

in any marketing mix is to correctly identify the distribution channels. Thequestion how to reach the customer" must always be in your mind.

The 4ps are

y Product

y Place

y Packaging

y Place distribution

Product:

y Brand : Aquafina

y Product : Packaged Drinking Water

y Quality : ISI Marked

y Packaging : Pet Bottles

y Positioning : Safe Water


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y Trade Promotion : Banking on Parent Brand, Banners.

y Target Market Segment: Health Conscious people

Pricing:

Pack size Price (Rs.)

500 ml. 10

1ltr. 15

2ltr. 23

25 ltr. 75

The pricing is mainly same for all the competitors so pricing does not make a huge

difference in the acceptability of the product

Place: Distribution

Bottling plant (Chembur, Roha)

y Distributor for catering Mumbai Market

Jogeshwari

y Sewri

y Chembur, Kanjur Marg


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y ResourcesLarge Vehicle (Soft Drink Vehicle

_For 1 Ltr. etc.

The Company directly approaches the retailer. They have tracked Mumbaithrough various routes and accordingly they service.

Schemes:

One LitreOne Box free on 3 Box (Net Rs. 80 per Box)Half LitreNo schemeFor 25 Ltr jar

Distribution Weakness:It seems that the Company is not pushing their packaged water brandAquafina andconcentrating on Beverages market.Many times their products are not available in the market..

Promotion:

For the promotion of the product the company depends on a wide range of media

y Newspapers, billboards, glow signs, banners, inflatable etc.

y TV.

y Mails.

y Radio.

y Magazines.

y Yellow pages.

y Newsletters.

y

Brochures.y Telephone.

y Internet.


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Recommendations for promotion

y Consumers already know about the product and the categorys success has

demonstrated the primary demand for the product. The focus for

advertising objectives should be on persuading or on building selective

demand.

y Pepsi wants to build brand preference and encourage both new users and

brand switching. Persuasive advertising includes persuading customers to

purchase now, to receive a sales call, and convincing customers to tell

others about the brand.

y The first step in creating effective advertising messages is to decide what

general message the company wants to communicate to consumers. This

flows from the positioning statement stressing the idea that the positioning

statement guides development of the marketing mix.

y The message should convey the products benefits and flow from a

creative concept. Pepsi problem arising because they are positioning the

product as nothing.

y If Pepsi wanted to target active people who drink water, a core benefit

could be summarized as Pure water. Wherever you are. Although there

are many pure positions, the author is stressing the convenience of bottled

water especially in out-of-the-way places. The stated advertising appeals

should be meaningful, believable, and distinctive.

y For message execution there are a number of different styles. Pepsi initially

used a slice of life style in depicting real people drinking Aquafina. If

this were the case then selecting lifestyle ads that depict active people

using the product in unusual places is a good method.

marketing plan final with compete ti on analysis

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