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MARKETING STRATEGY PROJECT OF AQUAFINA
Submitted to: Mr. Jawad Saleem
Submitted by:
Hafiz Syed Umair Bukhari 071138Naeem Jahangir 071142M. Mashood Aaqib 071417Suhaib Haider 071154Sajid Mehmood 051106
Final project: Marketing Strategy
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Acknowledgement
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 GOD
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.
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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
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TABLE OF CONTENTS
HISTORY OF AQUAFINA…………………………......5
HISTORY OF PEPSI……………………………………7
WORLD WATER MARKET…………………………..10
PAKISTANI WATER MARKET ……………………..10
ECONOMIC SURVEY…………………………………11
MARKET POTENTIAL………………………………. 13
INDUSTRIAL SWOT ANALYSIS…………………….14
MARKET ANALYSIS …………………………………15
COMSUMER …………………………………………...16
MARKETING MIX…………………………………….19
SWOT ANALYSIS OF AQUAFINA…………………..23
MARKET GROWTH OF AQUAFINA……………….24
BIBLIOGRAPHY………………………………………25
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HISTORY OF AQUAFINA
Aquafina
Type Water Beverage
Manufacturer PepsiCo, Inc.
Country of origin
Introduced
United States
1994
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. In Canada the current 1.5 L bottle of water displays "Dematerialized Treated Water". The bottle also displays that the water is "From the public distribution of Mississauga. ON. Michelle Naught on, a Pepsi-Cola North America
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spokeswoman said, "If this helps clarify the fact that the water originates from public sources, then it's a reasonable thing to do."
PepsiCo produces several other products under the Aquafina label:
Aquafina Sparkling carbonated flavored water, available in Berry Blast (Raspberry), and Citrus Twist.
Aquafina Flavor Splash, flavored water (without carbonation), and artificially sweetened with Scurrilous, available in Grape, Citrus Blend, Wild Berry, and Raspberry.
Aquafina Alive, a low calorie, vitamin-enhanced water beverage, available in Berry Pomegranate, Peach Mango and Orange Lime.
Aquafina plus+, a low calorie (120 calories per 591mL bottle), vitamin supplement water beverage available in "Blackberry Grape", "Pomegranate Cherry","Passionfruit Citrus" and "Orange Tangerine".
Aquafina is an official sponsor of Olympus Fashion Week, Sundance Film Festival, Tribeca Film Festival, Carolina Panthers, and the PGA.
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HISTORY OF PEPSI
Pepsi-Cola
Type Cola
Manufacturer PepsiCo.
Country of origin United States
Introduced 16 June 1903
History
Origins
Pepsi was first made in New Bern, North Carolina, in the United States in the early 1890s by pharmacist Caleb Bradham. In 1898, "Brad's drink" was changed to "Pepsi-Cola" and later trademarked on June 16, 1903.[1] There are several theories on the origin of the word "Pepsi".
The only two discussed within the current PepsiCo website are the following:
1. “Caleb Brad ham” bought the name "Pep Kola" from a local competitor and changed it to Pepsi-Cola.
2. Pepsi-Cola" is an anagram for "Episcopal" - a large church across the street from Bradham's drugstore. There is a plaque at the site of the original drugstore documenting this, though PepsiCo has denied this theory.
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The word Pepsi comes from the Greek word "Pepsi" (πέψη), which is a medical term, describing the food dissolving process within one's stomach. It is also a medical term that describes a problem with one's stomach to dissolve foods properly.
Another theory regarding the name's origins is that Caleb Bradham and his customers simply thought the name sounded good and reflected the fact that the drink had some kind of "pep" in it because it was a carbonated drink.
It was made of carbonated water, sugar, vanilla, rare oils, and kola nuts. Whether the original recipe included the enzyme pepsin is disputed.[2][3]
In 1903, Bradham moved the bottling of Pepsi-Cola from his drugstore into a rented warehouse. That year, Bradham sold 7,968 gallons of syrup. The next year, Pepsi was sold in six-ounce bottles, and sales increased to 19,848 gallons. In 1924, Pepsi received its first logo redesign since the original design of 1905. In 1926, the logo was changed again. In 1929, automobile race pioneer Barney Old-field endorsed Pepsi-Cola in newspaper ads as "A bully drink...refreshing, invigorating, a fine bracer before a race".
In 1929, the Pepsi-Cola Company went bankrupt during the Great Depression- in large part due financial losses incurred by speculating on wildly fluctuating sugar prices as a result of World War I. Assets were sold and Roy C. Mega gel bought the Pepsi trademark. Eight years later, the company went bankrupt again. Pepsi's assets were then purchased by Charles Goth; the President of Loft Inc. Loft was a candy manufacturer with retail stores that contained soda fountains. He sought to replace Coca-Cola at his stores' fountains after Coke refused to give him a discount on syrup. Goth then had Loft's chemists reformulate the Pepsi-Cola syrup formula.
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Aquafina is dealing with the water industry in Pakistan and tend to provide the pure water to the consumer as there is no mineral water bottle company in Pakistan we want to provide the mineral water for the first time in Pakistan as our organizational process is continually improving
Reason:
When Auafina has been launched by Pepsi in local market their was only few local brands and one multi national brand which is nestle
Overall Economic Scenario:
With the population of 180 million (estimated July 2007) Pakistan holds the ninth largest market with 34% urban population
Increasing overall population with a significant increase in urban population has resulted in more consumption of consumer goods
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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
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ECONOMIC SURVEY
Pakistan’s biggest consumer markets include:
Population and growth:
population 180 million
Growth rate 4.09%
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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
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Urban population 56 million
Urban Population growth rate 2.10%
Size of middle class 82 million
Middle class growth 3%
Age structure:
Age category Population %age0-14 years 64.5 million 39%15-64 years 94.5 million 57%65 years and over 7.0 million 4%
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0-14 YEARS
39%15 -64 YEARS
57%
65 YEARS AND
OVER4%
0-14 YEARS
15 -64 YEARS
65 YEARS ANDOVER
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Market Potential
At an average , a Pakistani consumer spends 42 % of income on food. Retail sales of processed foods are expanding by 10 percent per year. Consumer often prefer branded food items for both quality and status
reasons Demand for packager food is growing Key factors are: Changing lifestyle Influence of foreign media
Increase awareness of health principlesAdvertising is also helping to stimulate demand for branded food items.Per capita real GDP has increased at an average of 5.6 % per annum during the last three yearsThis increase has led to a rise in average income of people and a increase in consumer spendingTargeted segment- youth and elders- is health conscious and thus adds to the demand
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Industrial SWOT Analysis
Strengths:
The main strength of this industry is the lifestyle of the people is changing and this is reason that some local and multinational companies are entering in this industry. Demand is increasing day by day in the bottled water.
Weaknesses:
Weaknesses in this industry is that the lack of awareness and the poverty. Similarly there is lack of promotion and advertising is also the main weakness. Some time the lack of availability in the remote areas is also the strong reason
Opportunities:
Big competition in this industry is big opportunity in this industry and people are becoming more health conscious
Threats:
Trust of people is the main threats in this industry. So there should not be any complaint in this industry.
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Market Analysis:
Major players in this industry are:
Nestle
Kinley
Sufi
First
Others
Market Share of Different Companies in Pakistan:
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48%
22%
16%
7%4%3%nestle
aquafina
kinley
sufi
first
other…
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Nestle is the leader in this industry in Pakistan and the aquafina is the follower.
Consumer Analysis
We did a small research on consumer analysis:
When you use bottled water?
More people using bottled water, when they are on traveling and some people use at office or university and 25 % use at meal.
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25%
35%
40%
on meal
at office oruniversty
on travelling
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Why preference you aquafina?
The quality of aquafina is increasing day by day, so the people who preference aquafina is 45 % and other prefer on price, availability, image and some people prefer in other reasons.
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45%
10%
25%
15%5%
quality
price
availability
image
other
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What is the brand power of Aquafina ?
Income level of Aquafina’s users:
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30%
40%
25%
5%
excellent
good
average
poor
9%
14%
18%
27%
32% 20,000
20,000 to 50,000
50,000 to 80,000
80000 to 100,000
above 100,000
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MARKETING MIX
PRODUCT:
VISION: To provide superior water to our consumer
MISSION: To provide the healthy water in order to facilitate people SLOGAN: Fina nahi tu Pena nahi
Short term goals
To boost the sales Creating value for customer
Long term goals
Make the brand loyalty As PEPSI HasTo give the awareness to use it
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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.
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Pricing Policy
On going rate price Almost the prices of all bottled water is same
500 ML 12-141500ML 24-26
DISTRIBUTION
PRIMARY DISTRIBUTION Producer TO distributor
SECONDARY DISTRIBUTION
Distributor TO retailer TO consumer
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PROMOTION
ADVERTISING STRATEGY
TV RADIO NEWSPAPER MAGAZINE BILLBOARD BUSINESS TO BUSINESS PROMOTION
(YELLOW PAGES)
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SWOT ANALYSIS OF AQUAFINA
STRENGTH
Parent brand is PEPSI Distribution channel is strong highly preferable for health conscious people
WEAKNESSES
It is new thing for the user of PEPSI. WEAK in TV commercial
OPPORTUNITY
Apply the experience GOOD MARKET GROWTH Lack of pure drinking water over the country
Threats 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.
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MARKET GROWTH OF AQUAFINA
The growth of aquafina is increasing day by day. In 2004 it was only 11 % as shown in above diagram and now in 2008 it has been reached at 22 %.
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11% 14%17% 20%
0%
5%
10%
15%
20%
25%
SHAREIN 2004
SHARENI 2005
SHAREIN 2006
SHAREIN 2007
Series1
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BIBLIOGRAPHY
CONSUMER SURVEY Gallop survey economic survey of Pakistan met with Sajid Ali ( sales manager ) www.altavista.com www.google.com www.wikipedia.com
Final project: Marketing Strategy