Final Project of Marketing Contrex Water

Principle of Marketing

Group name:

J D L (Jet Dragon League)

Group members:

Waqas Sattar 1205

Muhammad Talal 1184

Muhammad Akmal 1187

Awais Tariq 1224

Hassan Imtiaz 1225

Subject title:

Principles Of Marketing

Project Report

Submitted to:

Mr. Usman M. Ghauri


ACKNOWLEDGEMENTS

By the grace of ALLAH ALMIGHTY, we are going to complete our marketing plan of Contrex Mineral Water.

We are very greatfull to our teacher Mr Usman M. Ghauri who gave us complete knowledge about Marketing and we became able to complete our project.


Executive summary

We are going to launch a new Mineral Water in the market. And our brand name Contrex Mineral Water. And its features are: prevent from various health diseases, immediate fulfill customer need, and advanced formula used for good health. Despite the Kinley. Nestle, we can compete because our product offers a unique combination of features. We are target differentiated market; we are focusing on what is common in the needs of consumer rather than on what are different.

Our positioning is our benefit attributes which we provide to customers. We will use trade promotion. We will advertise through GEO TV, ARY Digital network, city 42. Because these all are most interesting and famous channel among the all ages of people of PAKISTAN.

The primary market objective is achieving more than 200,000 volume of sales and 4% achieve market share.

Cost of our 600 ML product is Rs. 9 per unit, thus, we set price of product is Rs. 14 per unit.

Cost of our Medium 1.5 liter product is Rs. 18 per unit, thus, we set price of product is Rs. 23 per unit.

Cost of our Large 6 liter product is Rs. 47 per unit, thus, we set price of product is Rs. 54 per unit.


Cost of our extra Large 19 liter product is Rs. 135 per unit, thus, we set price of product is Rs. 152 per unit.

We are evaluating the results of marketing strategy,distibution channel and plan through closely monitor quality and customer services satisfaction after that we will be enable to react quickly and correctly any problems that may occurs.

PRODUCT REVIEW

The product review should summarize the main features for the company’s entire product. The information may be organized by product line, by type of customer, by market, or by order of product introduction.

PRODUCT DESCRIPTION: It is a pure mineral water. The mineral water is free from variance germs. Is good for health. The making of the water process is more purified, so that’s why this mineral water is free from various diseases. Thus began a very trusting relationship between Contrex and its users.

It’s fall in Consumer Goods. Our product type is Convenience Product. Because customer purchase frequently, immediately and minimum buying effort.Our product, the Contrex is designed to satisfy the need of our Customer. We want our consumers to identify the Contrex as an all natural, environmentally friendly product.

Features:


Contrex will provide safety to health.Prevent from various diseases.Contrex is the king of calcium.Advanced formula for a prevent of germs. Water is especially made to take care of even sensitive and harmful diseases.

Packaging SectionThe packaging section takes water from production department and puts it into bottles and than Seals it.


Induction sealing, otherwise known as cap sealing, is a non-contact method heating a metallic disk to hermetically seal the top of plastic and glass containers. This sealing process takes place after the container has been filled and capped.

Size and colors

A catalog number, especially for clothing, may group sizes and colors. When ordering the product, the customer specifies size, color and other variables.

Example: you walk into a store and see a group of shoes and in that group are sections of different colors of that type of shoe and sizes for

that shoe to satisfy your need.


Market Review

By describing the targeted segments in detail, marketers provide context for the marketing strategies and detailed actions programs discussed later in the plan.

MARKET SEGMENTATION

There is no single way to segment a market. A marketer has to try different segmentation variables, alone and in combination to find the best way to view the market structure. We choose demographic segmentation based on gender and income level.

MARKET TARGETING

Marketing segmentation reveals the firm's market-segment opportunities. The firm now has to evaluate the various segments and decide how many and which ones to target. At this point we will look at how companies evaluate and select target segments.

Evaluating Market Segments

In evaluating different market segments, a firm must look at two dimensions; segment attractiveness and company fit.

Segment AttractivenessThe company must first collect and analyze data on

current sales value, projected sales-growth rates and expected profit margins for the various segments.39 Segments with the right size and growth characteristics are interesting. But 'right size and growth' are relative matters. Some companies will want


to target segments with large current sales, a high growth rate and a high profit margin.However, the largest, fastest-growing segments are not always

the most attractive ones for every company. Smaller companies may find that they lack the skills and resources needed to serve the larger segments, or that these segments are too competitive. Such companies may select segments that are smaller and less attractive, in an absolute sense, but that are potentially more profitable for them.

Business StrengthsEven if a segment has the right size and growth and is

structurally attractive, the company must consider its objectives and resources for that segment. It is best to discard some attractive segments quickly because they do not mesh with the company's long-run objectives. Although such segments might be tempting in themselves, they might divert the company's attention and energies away from its main goals. They might be a poor choice from an environmental, political or social-responsibility viewpoint. For example, in recent years, several companies and industries have been criticized for unfairly targeting vulnerable segments - children, the aged, low-income minorities and others - with questionable products or tactics.

Royal Dutch Shell's directional policy matrix plots market attractiveness of segments against business strengths. Originally developed as a way of balancing business portfolios, it is also well suited to decision making about which markets to target.


Differentiated Marketing: (Segmented marketing)

Using a differentiated marketing strategy, a firm decides to target several market segments and designs separate offers for each. General Motors tries to produce a car for every 'purse, purpose and personality'. By offering product and marketing variations, it hopes for higher sales and a stronger position within each market segment. GM hopes that a stronger position in several segments will strengthen consumers' overall identification of the company with the product category. It also hopes for greater repeat buying because the firm's offer better matches the 0customer's desire.

The health conscious people are its target customers of this water. This segment marketing strategy, we will focus on what is common in the needs of consumer wants and preferences.

Company need to consider many factor s when choosing a marketing targeting strategy .which strategy is best depends on company resources. We enter in market through differentiated marketing. In the mature stage of the product life cycle, however, differentiated marketing begins to make sense.

Company product occupies a clear, distinctive and desirable place. Different level of positioning because a product positioning is a place of the product occupies relative to competitor in customer mind. Our positioning is our benefit attributes which we provide to customers.


Segmentation of Our Product:Our main Target is Lahore: so we have segmented Lahore in the following ways:

SEGMENTATION BASE SELECTED SEGMENTATION VARIABLES

Geographic Segmentation

Region East of Pakistan

City Size Second Largest city of Pakistan

Density of Area 166 persons/ Sq.km

Climate 40-45* in summer and up to -1c in winter

Demographic Segmentation

Age Male 55yrs Female 68yrs

Sex Male 48% Female 52%

Marital Status Both sexes marry

Income PPP estimated $28bilion @avg Growth rate of 5.9%

Education Nations Renowned city for Education @ 54%

Occupation Trading,Industry,Teaching,Student,Unemployed,Professional

Rural-Urban 72% Urban and 22% Rural

Family Life Cycle Mostly married and Joint family System

Social Class Upper class 25%,middle class 35%,lower class 40%


COMPETITOR REVIEW

Increased entry of established mineral water companies has force industry participation to continually add feature and cut price and also improve there quality of product.

The purpose of a competitive review is to identify key competitors, describe their market positions and briefly discuss their strategies.

Key Competitor Include:

Competitor Features Price Variant

Nestle Nestle water product face the variant problems, and they doing mass production “one for all”.

20 white

Kinley This is one of the best manufacturing brands that provide quality water. However this product is larger competing nestle water.

18 White

Springley Springley combines the ancient secrets for health It has been specially manufactured for prevent harmful diseases.

15 white


Market strategy and Position of our competitor

MARKETING STRATEGY:

Strategy is a decision which will affect all the subsequent tactics.

Marketing strategies are the means by which objectives will be

achieved. It reflects the company’s best opinion as to how it can most

profitably apply its skills and resources in the marketplace. Marketing

strategy is the broad statement of the way in which the organization

sets out to achieve these objectives. Included within this would be a

series of decisions on the markets in which the organization will

operate the type of product it will offer and the basis of the

competitive stances. Strategies endow us with a broad direction

directing the way through which we can achieve the desired position

or objectives. It includes: Market Segmentation Market Targeting

Market Positioning

Market positioning:

Market positioning involves the way a product is defined by

customers on important attributes. It is the place the product occupies

in consumer’s minds relative to competing products. The core strategy

is the matching of company strengths and market opportunities and

has two components: Identification of group of customers to whom

the company can clearly show it has a differential advantage. The firm


needs to position its offerings in the customer’s mind. Our first priority

is to maintain the good image of our brand in the mind of our

customers by introducing a new product of an equivalent quality. We

have to position our product in market in a way that can attract more

loyal customers.

DISTRIBUTION REVIEW

In this section, marketers list the most important channels, provide an overview of each channel arrangement, and mention any new developments or trends.

Our water (product) will be distributed through a network of selected stores in the top 10 Lahore market stores in the most important channel partner being connected are

Super store: H K B

We choose HKB because every class of customer comes here and buy the whole FMCGs of the month it is also a large store and have a full variety FMCGs and also they have a very wide range of cosmetics items also.

Departmental store:

We also place our product on the all departmental store of the city like, PACE, SIDDIQUE TRADE CENTER ( Ary cash n carry ) etc. We all know that on the departmental store people usually come for the impulse buying.

And also wholesale market

Although distribution will initially be restricted to the Lahore, but later on we expand into Karachi & Islamabad, sheikhupura, Gujarat, Bhakkar, and beyond country according to demand we will emphasize trade sale promotion in the first year.


SWOT ANALYSIS

Managing the marketing function begins with a complete analysis of the company‘s situation. SWOT analysis is a tool for auditing an organization and its environment. It is the first stage of planning and helps marketers to focus on key issues. SWOT stands for strengths, weaknesses, opportunities, threats.

STRENGTH:

Strengths include internal capabilities that may help a company reach its objectives.

The quality of our product is very high and approved by p.c.s.i.r lab.Our price is very suitable in compare of our product, none of which offer the same bundle of features, which gives us an edge with price-conscious customers.Our dealing with customer is very courteous.We have a better technology. A wide range of product in all stores.The system of internal control is sound in design and effectively implemented.

WEAKNESS:

Weakness include internal limitations that may interfere with a company‘s ability to achieve its objectives.

We have limited no. Of distribution channels in Pakistan.The diversion of customer s towards other brands due to cost.The high cost of the product.

Opportunities:


Opportunities are favorable factors or trends in the external environment that the company may be able to exploit to its advantage.

Government is promoting and providing high tax incentive on FMCG.New distribution channels.Product development offer many new opportunities.

THREATS:

Current and emerging external factors that may challenge the company’s performance.

Shift of consumer taste in new productThe water industry is highly competitive and every company is providing new variant in mineral water.New substitute of water in market.Existing competitors like Nestle, kinley, Springley, Aquafina.

OBJECTIVES AND ISSUES

The company’s objectives should be defined in specific terms so management can measure progress and, if needed, take corrective action to stay on track .This section describes any major issues that might affect the company’s marketing strategy and implementation.

CORE OBJECTIVES:

We have set aggressive but achievable objectives for the first and second years of market entry.

FIRST YEAR OBJECTIVES:


During the initial year on the market, our objectives are build awareness among early adopters, heavy expanses to create trial. We are aiming for a 3 percent share of the Pakistan market through unit sales volume of 200000.

SECOND YEAR OBJECTIVES:

Our second year objective is build awareness & interest in the segment market.

Reduce expanses to take advantage of consumer demand.

We are to achieve a 6 percent share based on sales.

Market Strategy

Contrex mineral marketing strategy is based on a positioning of product differentiation. Our target consumer are middle to upper income level, female, male and every health conscious people who want to be fit at every moment.

Our primary business target is solving the problem of our target customers through Mineral water.

POSITIONING:

A positioning built on meaningful differences, supported by appropriate strategy and implementation, can help the company build competitive advantage.


Using product differentiation, we are positioning the Contrex mineral water as the most long term Health concious people, immediate customer need, and advanced formula, convenient for consumer use

Product strategy:

The contrex mineral water, including all the features described in the earlier product review section, will be sold with a reasonable price.

Contrex mineral water will continue to set new trends as a true leader, creating aspiration and exploring new fruitful health in future.

Brand and labeling

Brand: The word brand is a comprehensive; it encompasses other

narrower terms. A brand is a name and/or mark intended to identify the product of one seller or group of sellers and to differentiate the product from competing products. Brands is used, not really correctly, to refer to a specific product, as in “sales of the brand”

Selecting a brand name:

Some brand names are so good that they contribute to the success of the product. Consider, for example, Diehard batteries and the Roach (which is a pest-eradication device, not a discounted motel) but it takes more than a clever brand name to ensure success in the marketplace. Witness Trans World Airlines, the aptly named airline that eventually faltered and was acquired by a competitor. Other brand names are so poor that they are a factor of product


failures. Occasionally products achieve success despite poor brand names.

Suggest something about, the product, particularly

its benefits and use

Be easy to Pronounce, spell, and remember

Be distinctive

Be adaptable to additions to the product line

Be capable of registration and legal protection

Packaging and Labeling:

Even after product is developed and branded, strategies must still be devised for other product-related aspects of the marketing mix. One such product feature, and a critical one for some products, is packaging. Closely related to packaging labeling is another, aspect of a product that requires managerial attention.

Purpose and Importance of Packaging:

Packaging consists of all the activities of designing and producing the container or wrapper for a product. Packaging is intended to serve vital purposes

Protect the product on its’ way to the consumer

Protect the product after it is purchased

Help persuade middlemen to accept the product


Help persuade consumers to buy the product

BRANDING STRATEGIES

Producer’s strategies

Producers must decide whether to brand their products and whether to sell any or all of their output under middleman’s brands.

Middlemen’s strategies:

Pricing strategy:

Some pricing difficulties occur because of confusion about the meaning of price, even though the concept is easy to define in familiar terms. Simply price is the amount of money and/or other items with utility needed to acquire a product. Recall that utility is an attribute with the potential to satisfy wants.

Because our economy is not geared to a slow, ponderous barter system, we typically state price in monitory terms and use money as our medium of exchange.

PRICING OBJECTIVES

PROFIT ORIENTED GOALS

ACHIEVE A TARGET RETURN

MAXIMIZE PROFITS

SALES ORIENTED GOALS

INCREASE SALES VOLUME


MAINTAIN OR INCREASE MARKET SHARE

GENERAL PRICING APPROACHES

Cost based approach

Value based pricingCompetition based approach

DISTRIBUTION STRATEGY:


Companies often pay too little attention to their distribution channels Managers who see channel functions merely as the physical transportation, storage and distribution of finished goods to the end-user fail to utilize the channel of distribution as a competitive weapon.

Distribution channel decisions often involve long-term commitments to other firms. For example, companies can easily change their advertising, pricing or promotion programmers’. They can scrap old products and introduce new ones as market tastes demand. But when they set up distribution channels through contacts with franchises, independent dealers or large retailers, they cannot readily replace these channels with company-owned stores if conditions change. Therefore, management must design its channels carefully, with an eye on tomorrow's likely selling environment as well as today's.

CHANNEL OF DISTRIBUTION

Most producers use third parties or intermediaries to bring their products to market. They try to forge a distribution channel - a set of interdependent organizations involved in the process of making a product or service available for use or consumption by the consumer or business user. The channel of distribution is therefore all those organizations through which a product must pass between its point of production and consumption.

MARKETING COMMUNICATION STRATEGY

Many view promotional activities as the most glamorous part of marketing. This may have to do with the fact that promotion is often


associated with creative activity undertaken to help distinguish a company’s products from competitors’ offerings. While creativity is an important element in promotion decisions, marketers must also have a deep understanding of how the marketing communication process works and how promotion helps the organization achieve its objectives.

Communication marketers attempt to develop a unified promotional strategy involving the coordination of many different types of promotional techniques. The key idea for the marketer who employs several promotional options to reach objectives for the product is to employ a consistent message across all options. For instance, salespeople will discuss the same benefits of a product as mentioned in television advertisements. In this way no matter how customers are exposed to a marketer’s promotional efforts they all receive the same information.

Through marketing promotion mix we will reinforce the brand name and the main point of product differentiation. Advertising will appear on a pulsing basis to maintain brand awareness and communicate differentiation massages .to attract customer attention.

We will use trade promotion and until contrex mineral water brand has been established, our communication will encourage purchases through channel partners.


We are advertising through GEO TV. And ARY digital, and city 42, because it is most interesting and famous channel among the all ages of people of PAKISTAN. People when viewing GEO TV, and ARY digital, and city 42, they do not tune off this channel. The commercials which play on this channel create stronger impact on the viewer about that product especially those commercials in which there are famous celebrities acting and advertising the product. People take more interest in this type of commercials it will help us in building up a strong brand recognition in mind of general public.

Advertising

Our coverage of advertising will be continues, we will Manage the Advertising Campaign, where we look at what decisions are needed to carryout a successful advertising campaign.

Types of Advertising

If you ask most people what is meant by “type” of advertising, invariably they will respond by defining it in terms of how it is delivered (e.g., television ad, radio ad, etc.). But in marketing, type of advertising refers to the primary “focus” of the message being sent and falls into one of the following four categories.


Product Oriented

Image advertising

Most advertising spending is directed toward the promotion of a specific good, service or idea, what we have collectively labeled as an organization’s product. In most cases the goal of product advertising is to clearly promote a specific product to a targeted audience. Marketers can accomplish this in several ways from a low-key approach that simply provides basic information about a product (informative advertising) to blatant appeals that try to convince customers to purchase a product (persuasive advertising) that may include direct comparisons between the marketer’s product and its competitor’s offerings (comparative advertising).


Image advertising is undertaken primarily to enhance an organization’s perceived importance to a target market. Image advertising does not focus on specific products as much as it presents what an organization has to offer. In these types of ads, if products are mentioned it is within the context of “what we do” rather than a message touting the benefits of a specific product. Image advertising is often used in situations where an organization needs to educate the targeted audience on some issue. For instance, image advertising may be used in situations where a merger has occurred between two companies and the newly formed company has taken on a new name, or if a company has received recent negative publicity and the company wants to let the market know that they are about much more than this one issue.

Public Service Advertising

In some countries, not-for-profit organizations are permitted to run advertisements through certain media outlets free-of-charge if the message contained in the ad concerns an issue viewed as for the “greater good” of society. For instance, ads directed at social causes, such as teen-age smoking, illegal drug use and mental illness may run on television, radio and other media without cost to organizations sponsoring the advertisement.

Sales Promotion

In a time when customers are exposed daily to a nearly infinite amount of promotional messages, many marketers are discovering


that advertising alone is not enough to move members of a target market to take action, such as getting them to try a new product. Instead, marketers have learned that to meet their goals they must use additional promotional methods in conjunction with advertising.

Other marketers have found that certain characteristics of their target market (e.g., small but geographically dispersed) or characteristics of their product (e.g., highly complex) make advertising a less attractive option. For these marketers better results may be obtained using other promotional approaches and may lead to directing all their promotional spending to non-advertising promotions.Finally, the high cost of advertising may drive many to seek alternative, lower cost promotional techniques to meet their promotion goals.

MARKETING RESEARCH

Marketing research managers interact with customers to define problems and identify the information needed to resolve them. Our research manager designed research projects prepare questionnaires and samples analysis data prepare reports and present their findings and recommendations to management. He must understand statistics consumer behavior psychology and sociology.

Using research we are identifying the specific feature and benefits that are target market segment values. Feed back from market tests surveys and focused groups will help us to develop the contrex mineral water. We are also measuring and analyzing customer, attitude towards competing brands and products. Brand awareness research will help us to determine the effectiveness and efficacy of our


messages and media. Finally we will use customer satisfaction studies to market reaction.

MARKETING ORGANIZATION:

Contrex mineral Water chief marketing officer hold overall responsibility for all the companies market activities. Contrex Mineral Water the company grows there becomes too much work for one person and the company must attain a team of specialist to manage the greater sophistication. At this point the organization must either train existing staff or hire externally. As this organization is expanded there is sometimes confusion regarding the structure and rolls of the different functions.

BudgetBudgets are two main purposes and necessary to projected profitability and to help the manager plan for expenditure scheduling and operation related to each action program. Budget helps us to set our product price effectively and profitability.

Cost Break Up

Items Small600 ML

Medium1.5 Liter

Large6 liter

Extra large19 liter

Raw Material Rs. 0.58 Rs. 3.50 Rs. 15 Rs. 55Bottle

Water Neutralist Rs. 2.00 Rs. 4.00 Rs. 6.00 Rs. 18


Cost from Raw material

Rs. 2.58 Rs. 7.50 Rs. 21.00 Rs. 73.00

Cost from Departments:

Promotion Rs. 1.84 Rs. 2.09 Rs. 7.02 Rs. 15.00

Distribution Rs. 1.00 Rs. 2.50 Rs. 5.50 Rs. 12.00

Branding & Packaging Rs. 0.70 Rs. 1.00 Rs. 2.30 Rs. 5.16

Product Development Rs. 0.50 Rs. 1.00 Rs. 2.00 Rs. 4.00

Sales Tax + Duty Rs. 2.38 Rs. 3.91 Rs. 9.18 Rs. 25.84

Total Cost Rs. 9 Rs. 18 Rs. 47 Rs. 135

Our Margin Rs. 1.00 Rs. 1.00 Rs. 2.00 Rs. 7.00

Wholesaler margin Rs.1.50 Rs. 1.50 Rs. 2.50 Rs. 4.00

Retailer margin Rs.2.50 Rs. 2.50 Rs. 2.50 Rs. 6.00

Final Sales Price Rs. 14 Rs. 23 Rs. 54 Rs. 152


Competitors’ Price Rs. 15 Rs. 25 Rs. 55 Rs. 160

References:

www.digitallibrary.com

www.marketingprof.com

www.google.com

www.aquafina.com

www.kamjadsaeed.eud.pk

http://www.kamjadsaeed.eud.pk/

http://www.aquafina.com/

http://www.google.com/

http://www.marketingprof.com/

http://www.digitallibrary.com/

Documents

Final Project of Marketing Contrex Water