10 STEPMarketing Plan for Absolute

Distilled Drinking Water

Maan GabuyaNovember 2012

Disclaimer

This 10 Step Marketing Plan is part of the mandatory requirements of Prof. De Ungria’s marketing management class.

The data included in this report are based on publicly available data such as those on internet websites, news, package declarations, public reports.

When appropriate, data are “masked” so as not to create unexpected conflicts.

The reports are posted and linked on slideshare, blogs and facebook so that there is easier sharing among students from different marketing classes.

Steps 1 to 5Absolutely pure.

Absolute Distilled Drinking Water PTM are children

Who needs clean, safe, and pure water

They can choose Wilkins and Nature Spring

The gap is to provide high quality distilled drinking water at a cheaper price

36% of sales (volume share)

Steps 6 to 10Absolutely pure.

Absolute distilled drinking water comes in 9 variants (350 ml, 500 ml, 1 L, 1.5 L, 2 L, 4 L, 5 L, 6 L, and 5 gal)

Absolute distilled drinking water is priced at approximately 3-5% depending on the variant

Uses TV, events and experience Distributed nationwide Absolute uses differentiation and is a low-

cost producer which makes it the market leader

1. Absolute Primary Target Market (PTM) are children

Children 10 years old and below Playing and studying Drink 8-10 glasses of water

2.a PTM needs a safe drinking water for their young and stabilizing body

2.B Children have their own needs, wants, and demands

Children need to drink/take water in order to survive

Mothers prefer Absolute over other brands because of its high quality distillation process; National Sanitation Foundation International Certified; International Bottled Water Association member

Children demands safe, clean, and absolutely pure drinking water for their young and sensitive bodies

3.a Absolute competitors

Direct: Wilkins Distilled Water (San Miguel Corp.) and Nature Spring Distilled Water (Philippine Spring Water Resources Inc.)

Indirect: Mineral Water, Purified Water

Variables: Age, Price, specific use, availability

Absolute Pure Distilled Drinking Water is the market leader

Price/Age 0-10

High Price

Medium Price

Low Price

Absolute

Wilkins

NS

Benefit Position vs. Brand Matrix

Functional Benefit

Wilkins Absolute Nature Spring

Safe Y Y Y

Clean Y Y Y

All distilled water brands provide the same functional benefits

4. Absolute’s competitive pricing and excellent placement of product helps them saturate the market well Absolute Pure Distilled Drinking

Water is the only locally manufactured bottled water that has been certified by the National Sanitation Foundation International

http://asiabrewery.com/our-brands/non-alcoholic-beverages/absolute/

ABI has remained to be ahead of its competitors because of its lower-pricing strategy

http://www.euromonitor.com/bottled-water-in-the-philippines/report

5.a Absolute market size based on market shares

The company’s off-trade value sales in 2011 totalled Php 30 billion, accounting for a value share of 34%

http://www.euromonitor.com/bottled-water-in-the-philippines/report

34% * MarketSize = Php 30 B

MarketSize = Php 88.23 B

5.b Absolute market size based on individual consumption

Recommended water intake : 8-10 glasses of water or 2.5 L per day;

Based on 10-glasses 1 glass = 250 ml ** 250 ml * 8 = 2 liters ** 250 ml * 2 = 500 ml

4 L = Php 45; Approx. Php 35 per day for 2.5 L95 Million – Filipino population

Market Size = 95M * Php 35Market Size = Php 3,325,000,000

** http://wiki.answers.com/Q/One_glass_of_water_equals_how_many_ml

6. Absolute, Wilkins, and Nature Spring

6.b Absolute product description

All Absolute bottles are labeled with Absolute’s logo and brand color green

Absolute’s bottle cap is color green

6. Absolute product description

Its high quality distillation process makes it the first and currently the only bottled water brand manufactured in the Philippines to be certified by the National Sanitation Foundation International, one of the world’s most trusted certification organizations. It is also a member of the International Bottled Water Association that ensures compliance among bottled water makers around the world.

http://asiabrewery.com/our-brands/non-alcoholic-beverages/absolute/

7. Absolute pricing

Price Absolute Wilkins

350 ml Php 15

500 ml Php 20

4.0 L Php 45 Php 56

5.0 L

6.0 L Php 60 Php 72

5 gal Php 130 Php 150

8.a Absolute promotion

8.b Absolute Advertisements

8.c Absolute events

8.d Absolute PR

Absolute sponsors bottled waters in senate hearings and other events

8.e Competitors’ Communication Strategies

Advertisements

9.a Absolute place and distribution

Major supermarkets, mini-marts, groceries, convenience stores, drug stores

Available nationwide Method of delivery:

For 5-gal variants – home delivery through phone orders

For bulk order of other variants (minimum order reached) – delivery

Others – pick-up by customers Cash and credit transaction

9.b Absolute place and distribution challenges

5-gal variant is not available in supermarkets. Orders are received through delivery from distributors.

Not all areas have a 5-gal distributor yet

10. Absolute winning strategy

Low Cost Producer Competitive pricing – Absolute is able to

do this because they manufacture their own product and bottles

Excellent quality of product and packaging Differentiation – Absolute uses high

grade of plastic in their bottles

Photo and Information Credits http://asiabrewery.com/ http://www.facebook.com/absolutedistilled?filter=1 http://en.wikipedia.org/wiki/Asia_Brewery http://

www.euromonitor.com/bottled-water-in-the-philippines/report http://en.wikipedia.org/wiki/Maslow%27s_hierarchy_of_needs http://

timotraveling.blogspot.com/2012/10/foods-to-avoid-in-philippines-drinks-to.html

http://www.ph.all.biz/natures-spring-distilled-drinking-water-g9319 http://www.facebook.com/photo.php?fbid=455645664450693&set

=pb.325696654112262.-2207520000.1352295935&type=3&theater

http://www.totteringmama.com/2012/05/absolute-pure-distilled-drinking-water-awards-5-absolutely-inspiring-moms-for-others.html

http://www.batangastoday.com/prosecutor-vitaliano-aguirre-covers-ears-during-senator-miriam-defensor-santiago-speech-video/20891/

http://www.youtube.com/watch?v=qFAPcXgOOHs