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PROJECT OF MARKETING RESEARCH

Submitted to:-

MR.AHMAD UR RAHMAN

Submitted by:-

ZAEEM HASSAN 2008-ag-469

HUSSAIN AFZAL 2008-ag-900

MUHAMMAD ZOHAIB ARSHAD 2008-ag-430

IMRAN KHAN SHABIR 2008-ag-216

MUHAMMAD SUFYAN 2008-ag-452

MUHAMMAD ISHFAQ 2008-ag-215

ALI AFZAL DAR 2008-ag-915

WAQAR AZEEM AWAN 2008-ag-297

MBA 4TH

MARKETING

UNIVERSITY OF AGRICULTURE
FAISALABAD

AKNOWLEDGEMENT
All praises for almighty Allah. The creator. Whose uniqueness oneness is
unchallengeable countless thanks to he the lords of lords who blessed us
with the courage and power to complete this report and all respects and
regards to Holy Prophet Hazrat Muhmmad (PBUH) for giving us the faith
paving us on the right path with the essence of faith in ALLAH
We feel great pleasure in expressing our profound and cordial gratitude to
our respected teacher and taught supervisors Sir Jawad Saleem for his
admirable cooperation guidance for us and sympathetic attitude which
enable us in the formulation of and compilation of report.

Our special thanks and favor for our esteemed friends for their ever lasting
cooperation and giving us the homely atmosphere. Last but not the least we
thank full to our parents and our family members for their cooperation
guidance and inspiration throughout the course.
TOPIC & CONTENTS
AQUAFINA

• Executive summary
• History
• world water bottled market
• PAKISTAN water bottled market
• Economic survey
• SWOT ANALYSIS
• Target market
• Point of purchase
• COMPETITIVE ADVANTAGE
• Market growth
• Market analysis
• Marketing mix
• Product packaging
• Pricing policy
• Distribution
• Promotion
Executive Summary

The goal of this marketing plan is to outline the strategies, tactics, and
programs that will make the sales goals outlined in the AQUAFINA business
plan a reality in the year 2008.
AQUAFINA is the answer to an increasing demand. Marketing will play a
vital role in the success of AQUAFINA. AQUAFINA must build a brand
around the services it offers by heavily promoting itself through local
television, radio, and print advertising. Marketing efforts are just beginning
by the time a potential customer enters AQUAFINA for the first time. A
strong emphasis will be put on keeping customers and building brand loyalty
through programs focused on staffing, experience, and customer

HISTORY OF AQUAFINA

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 United
States' top-selling bottled water brand in measured retail channels. Aquafina
is sold in 12-fluid ounce, 500-milliliter (16.9 fl oz), 20-ounce, 24-ounce, 1-
liter, and 1.5-liter bottles.
Aquafina uses PepsiCo's own purification system, which it calls HydRO-7,
that includes charcoal filtration, reverse osmosis and Ozona ion. PepsiCo
states in marketing material that this system removes substances that may be
in other brands of bottled water. As of July 27, 2007, PepsiCo put a
disclaimer stating the water comes from a "public source" on each bottle.
Aquafina uses the term "Purified Drinking Water" on its label.
WORLD WATER BOTTLED MARKET
Annually consumption 189billion liter

Estimated sales $ 200 billion

Consumption growth 7 % per year

PAKISTANI BOTTLED WATER

People using bottled water 7 to 8 %

Annually consumption 1.7 billion liter water

Estimated sales RS 20 billion

Consumption growth 1.7 % per year

ECONOMIC SURVEY
Pakistan’s biggest consumer markets include:
CITES POPULATION
Karachi 15 million
Lahore 9 million
Rawalpindi 3.0 million
Faisalabad 2.6 million
Multan 1.6 million
Gujranwala 1.3 million
Hyderabad 1.3 million
Islamabad 1.3 million
peshawar 1.0 million
Population and growth:
population 180
million
Growth rate 4.09%

Urban population 56
million
Urban Population growth rate 2.10%

Size of middle class 82


million
Middle class growth 3%

Age structure:

agePop Age category Population & %age


n
0-14 years 64.5 million
39%
15-64 years 94.5 million
57%
65 years and over 7.0 million
4%
SWOT ANALYSIS OF AQUAFINA

• STRENGTH

• Parent brand is PEPSI


• Price of bottle is 2nd biggest strength
• Distribution channel is strong
• Marketing staff who lead AQAUAFINA
• highly preferable for health conscious people
• its plant of filteration is awarded as worlds no.1 plant
• best bottle manufacturing plant of the world
• best relations with shop-keepers
• party orders due to promotional packages like 1 pet free on purchase
of 2 pet.but now a days 1 bottle with every pet

• WEAKNESSES

• Taste is not good


• Bottle swell up when it is kept in sun light
• Taste changes in 24 hours if it is not kept in 20-30 c temprature
• WEAK in TV commercial
• Behavior with their distributors
• No proper measuring of their activities & products after sales
• No feedback they get

• OPPORTUNITY

• Apply the experience


• GOOD MARKET GROWTH
• Lack of pure drinking water over the country
• New bulk of water is being introduced by AQUAFINA

• Threats
• Awareness among people about reality of sales strategy & water
ingredients
• Increasing cost plant
• High expectation of the consumer is associated with PEPSI
• If not fulfill the expectation, might effect the reputation of PEPSI
• Big Leader Nestle already exists.
• Expiry date is not mention on bottles
• New logo of pepsi is also a threat because in old stock there is old
logo is printed till now,which means that bottles are old

Target market
Earlier AQAUAFINA focus on people of age 14-40
But now there are successful in getting this target market
This time AQAUFINA is focusing on CHILDERNS
That is why most of the ads containing children as actors & characters
Point of Purchse
Point of purchasing of plastic is THAILAND
& water from PUBLIC SOURCE
COMPETITIVE ADVANTAGE
• PEPSI parent brand
• Competitors licenses are cancelled by HIGH COURT
• LOW PRICE
• STRONG DITRIBUTION NETWORK
• BOTH PULL & PUSH STRATEGIES
• Attractive promotional activities as compare to their competitors like
in start AQAUFINA offered 1 pet free with every 2 pet.that help out
the AQAUAFINA to capture more & more market

MARKET GROWTH OF AQUAFINA


The growth of aquafina is increasing day by day. In 2004 it was only 11 %
as diagram and in 2008 it has been reached at 22 %
NOW IN 2010 AQAUFINA HAS MARKET SHARE OF 40 %

Market Analysis:

Major players in this industry are:

 Nestle

 Kinley

 Sufi

 First

 Others
MARKETING MIX

PRODUCT:

VISION:
To provide superior water to our consumer

MISSION:
To provide the healthy water in order to facilitate people

Short term goals


To boost the sales
Creating value for customer

Long term goals


Make the brand loyalty As PEPSI Has
To give the awareness to use it

Product packaging

Plastic bottles
 500 ml
 1500 ml
Labeling

 sticker containing ingredients


 on the other side USP of the product is specified

USP
 purity
 Taste of Aquafina is taste of Water.

Pricing Policy

On going rate price


Almost the prices of all bottled water is same

500 ML 15
1500ML 28

DISTRIBUTION
PRIMARY DISTRIBUTION

Producer TO distributor

SECONDARY DISTRIBUTION

Distributor TO retailer TO consumer

*ALSO DISTRIBUTING TO DIRECTLY SHOPKEEPERS


BECAUSE TO COVER MANY WEAK ARES LIKE VILLAGES etc
PROMOTION
 ADVERTISING STRATEGY
 TV
 RADIO
 NEWSPAPER
 MAGAZINE
 BILLBOARD
 BUSINESS TO BUSINESS PROMOTION
(YELLOW PAGES)
• Giving incentives to distributor & shopkeepers
• Incentives for ASMs (bout 10 & hit 10 strategy)
• Stands,t-shirts,chiller,etc for sales promotion & BRAND loyality
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• Executive summary
• History
• SWOT ANALYSIS
• Target market
• Point of purchase
• COMPETITIVE ADVANTAGE
• Market growth
• Market analysis
• Marketing mix
• Product packaging
• Pricing policy
• Distribution
• Promotion
Executive Summary

This report,regarding Nestlé water. It starts with an introduction about


Nestlé followed by the history of Nestlé. It gives a briefing about Nestlé.

This report also includes the market mix of the product. All the 4P’s
of marketing mix for the product has been discussed and explained to reveal
the significance of its pricing, product, placing and promotional activities
along with the strength and weaknesses of the organization.The report shows
an internal architecture of the working of the Nestlé confectionary business.
It gives a detail about the supporting department that has helped the business
in their daily working.

Also it discusses the objectives, policies of the organization along with their
competitors at national level. There are also some
suggestions/recommendations for the business.

HISTORY OF AQUAFINA

Henri Nestlé founded Nestlé in 1866 in Switzerland. Nestlé means


‘little nest’ in Swiss German. Nestlé first customer was a premature infant
who could tolerate neither his mother’s milk nor any other conventional
substitute. Thus, Henri’s ultimate goal was to help fight the problem of
infant mortality due to malnutrition for which he developed a product
combining various cow’s milk, wheat flour and sugar and name it Farine
Lactee Nestlé, which was the first product of Nestlé being marketed in
Europe.

In 1974, Jules Monnerat purchased Nestlé and collectively they


launched a condensed milk product of its own. In 1905, Nestlé got merged
with Anglo-Swiss condensed milk.

After some time, when Nestlé got fully established and all its
operation were properly functioning in Europe and was gaining fame around
Europe, then Nestlé decided to set up production plants around the globe to
ensure the growth of the organization and to become multinational.

The decision to set up industrial operation in new market needs a lot


of research, as there are various factors that effect the growth of the
organization and turns out to be a loss for the company. Such factors are as
follows

 The availability of raw material


 Cost factor
 Economic climate
 Consumer purchasing power
 Consumer tastes

The decision to become multinational turned fruitful for Nestlé and today
Nestlé has its own operations and products in America, England, India,
Brazil, Australia, Pakistan, Hungary, France, Belgium, Italy, Spain and
various other countries around the globe.
SWOT ANALYSIS OF NESTLE

• STRENGTH
• LARGE MARKET SHARE
• ALREADY EXISTING IN MARKET AS COMPARE TO
COMPETITORS
• IT IS KNOWN AS PURE WATER
• BEST STAFF,SPECIAL R & D dept
• Resources
• Brand Image
• Consumer Pull
• category focused sales

• WEAKNESSES
• Advertisement / Promotional Campaigns
• Weak distribution due to less VANS
• Less Number of Chillers
• High turn over of salesmen
• Low Trade Offer as compare to competitor
• Food Services accounts e.g. Restaurants, Bus stands,
Railway stations
• High price
• Less party orders due to high price

• OPPORTUNITY
• Changing Lifestyle
• Faisalabad City Developing on Fast Track
• Increasing literacy rate
• Sub Standard Quality of Drinking Water
• Very low per capita consumption of NPL
• Big Shop Universe

• Threats
• High Trade offers by Aquafina & Kinley
• Rising Inflation Rate
• Low prices of competitor
• Awareness of customer is increasing

Target market
Target market is same as of AQAUFINA
First target was to capture people of age 14-40
Now kids & children

Point of Purchse
Point of purchasing of plastic is THAILAND
& water from PUBLIC SOURCE
COMPETITIVE ADVANTAGE
• Its purity is its competitive advantage
• Its promotional activities regarding after sale is attractive
Like if any bottle in pet is leaked but sealed,then it is replaced while
no competitor do like this,which create more security for business
customer
• More care in filteration process as compare to AQUAFINA
MARKET GROWTH OF NESTLE
NESTLE IS LEADING THE MARKET WITH MARKET SHARE OF
52%
Market Analysis:

Major players in this industry are:

 AQUAFINA

 Kinley

 Sufi

 First

 Others
MARKETING MIX

PRODUCT:

VISION:
To provide PURE WATER to consumer

MISSION:
To add up minerals best for digestive system of human body

Short term goals


To boost the sales
Creating value for customer
Long term goals
Keep the loyalty of customer with NESTLE

Product packaging

Plastic bottles
 500 ml
 1500 ml
Labeling

 sticker containing ingredients


 on the other side USP of the product is specified

USP
 purity
 Taste of NESTLE water is much nice than AQAUAFINA
Pricing Policy

On going rate price


Almost the prices of all bottled water is same

500 ML 18
1500ML 35

DISTRIBUTION
NESTLE has its own distribution network
So
They provide products to shopkeepers & end consumer itself

PROMOTION
 ADVERTISING STRATEGY
 TV
 RADIO
 NEWSPAPER
 MAGAZINE
 BILLBOARD
 BUSINESS TO BUSINESS PROMOTION
(YELLOW PAGES)
• Giving incentives to shopkeepers
• Incentives for ASMs
• Stands,t-shirts,chiller,etc for sales promotion & BRAND loyality

Recommendations for AQAUFINA:-


• CONTROL PRICE
• KEEP THE TASTE HIGH
• GET FEEDBACK FROM BUSINESSCUSTOMERS & CONSUMERS
AS WELL
• DNT REMOVE NATURAL MINERALS
• HAVE SPECIAL MEASUREMENT AFTER SALES LIKE CHECK
TEMPRATURE OF GOWDAMS & DISTRIBUTOR PLACE OF
STORAGE
• INCREASE INCENTIVES OF DISTRIBUTORS,BECAUSE FOR
LAST 5 YEARS INCENTIVES ARE SAME
• REDUCE PRESSURE ON DISTRIBUTORS FOR MORE & MORE
SALES,BECAUSE ITS LEAD TO FRAUD & CHEATING
• MAKE PAKISTANI EMPLOYESS FAMILIER WITH FILTERATION
PLANT SO THAT COST OF FOREIGNERS WILL DECREASE WHO
ARE OPERATING PLANT
• TRAINING PROGRAMME
• IT IS A GREAT CHANCE TO COMPETE WITH ITS COMPETITOR
BECAUSE IT IS 1-1 COMPETITION THIS TIME & GREAT
OPPURTUNITY FOR AQUAFINA
• GIVE MORE BOTTLES TO CUSTOMER ON SALE OF
PET,BECAUSE IT IS RECORD THAT WHEN ITS HAVE
PROMOTION THAT 1 PET IS FREE WITH PURCHASE OF 2
PET,ITS MAKE A GREAT BUSINESS & GET TARGET SALES,EVEN
MANY AREAS GET 110% SALES AS THEY WERE TARGETED
• INCREASE LIFE OF TASTE & BOTTLE
• DO NOT CHEAT WITH CONSUMERS BECAUSE MAN POWER IS
LARGEST POWER IN THE WORLD AFTER ALMIGHTY ALLAH
Recommendations for NESTLE:-
• KEEP THE TASTE NICE
• INCREASE ADVERTISING & SHOW YOUR COMPETITIVE EDGE
• INCREASE LOYALITY OF CUSTOMER WITH BRAND THROUGH
ATTRACTIVE PACKAGES
• KEEP THE PRICE LOW,BECAUSE THE DAY WHEN PRICE WILL
COMPETITOR WILL BE VERY NEAR TO YOUR PRICE YOUR
SALES WILL BE BOOST UP.
• INCREASE ITS DITRIBUTION NETWORK
• TRY TO GET MORE & MORE PARTY ORDERS
• GIVE KEEN INTEREST TO CRM
• INCREASE INCENTIVES & PROMOTIONAL ACTIVITIES
• More focus on C & D Class Shops by revisiting Shop wise data.
• Training of ASM’s by Regional Head as a Coach / Team Leader.
• Training courses/workshops for team
• Conduct Training Sessions of Salesmen at least once a month at
Regional Level.
• Hiring of Quality Sales people is in process in Faisalabad City.
• Re-define roles & responsibilities of every Individual in order to
bring ownership and sense of responsibility.
• Weekly Meeting with Distributors and Sales Team in order to review
weekly target closing
Recommendations for GENERAL PUBLIC:-
• BE QUALITY CONCIOUS
• DO NOT COMPROMISE ON YOUR HEALTH
• FIRST SEE THE BOTTLE FIND OUT EXPIRY DATE & THEN
DRINK IT
• YOU PAY FOR PRODUCT,ITS YOUR RIGHT TO GET PURE
PRODUCT.IF YOU DO NOT GET PURE PRODUCT THEN YOU
MUST NOT BE SILENT.DO JEHAD AGAINST WRONG 1,FRAUD &
CHEATER
• TAKE YOUR SPECIAL CARE & YOUR PARENTS AS WELL
• BE UNITED
• BE PETRIOT WITH PAKISTAN

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