SULEMAN JAVED 2526MUHAMMAD TAHIR 2532ATIF JAMIL 2530ABDULLAH AJAZ BUTT 2505

GROUP MEMBERS

WATER PURIFICATION MARKETING PLAN

Water Purification Marketing Plan

Executive Summary

Pure Life Cycle Industries, Inc. provides the service of Water Purification for industrial reasons and take advantage of an unsatisfied market need of Pure Water on a portable basis.

The company will primarily focus market of customers who require high-quality Pure Water for their water treatment facilities.

The facility that Pure Life Cycle Industries will utilize is located in Attock, Pakistan and is already in limited production.

Revenue

Pure Life Cycle Industries will generate gross sales of Rs17,88,000 in the first year, reaching Rs2.9 million in the second, and Rs4.2 million in the third years.

Keys to success:1. Good quality control in the factory.2. Fast response. 3. High-profile allegiances.

Situation Analysis

Pure Life Cycle Industries as in its first year of operation will purchased the assets of an existing company.

The basic market need is for portable Water purification units can be leased or purchased.

The market need for leases includes exemplary service levels. This means that when a customer undertakes a lease they are effectively leasing Pure Life Cycle Industries as a service provider.

Market Summary

Pure Life Cycle Industries possess good information about the market needs, this information will be used to generate strategies to better

understand the customers, their specific needs, and the most effective ways to communicate with them.

Market Needs

Pure Life Cycle Industries seeks to fulfill the following benefits that are important to its customers:

Selection: Pure Life Cycle Industries posses high potential to offer solutions to everyone.

Flexibility Pure Life Cycle Industries must be able to work with each customer's individual needs.

Customer Service: Exemplary customer support is required since purified water is such an important variable for the customer's business.

Market Trends

One notable trend in industries is to outsource. Then many large users of Pure Life Cycle Industries will want to set up their own in-house capacity, because the capital costs, maintenance costs, and the costs of dealing with Water Purification waste often make Water Purification a more economical solution.  As now a days industries need high degree of results in an ever-growing market for Life Cycle Industries.

THE OVERALL EVALUATION OF COMPANY STRENGTH, WEAKNESS, OPPORTUNITY AND THREATS ARE

KNOWN AS SWOT ANALYSIS.

SWOT ANALYSIS

Strengths

A very strong service-based company culture.

The ability to meet customer's particular needs.

An already existing customer base.

Weaknesses

The need for significant capital for equipment.

Capital expenses required for the development of a comprehensive dealer network.

Difficulty in establishing brand equity.

Opportunities &Threats

Participation in a growing market. The huge diversification of potential customers,

reducing risk if there is a downturn in a specific industry.

Operating efficiencies that are attainable as the business grows

Changes in technology that could effect companies that are heavily invested in current technology.

Future/potential competition from a large company that decides to take a more flexible approach to meeting customer's needs.

Changes in the regulatory environment (primarily applicable to the higher purity products).

Competition

The user of pure life cycle industries has little choice to find out the alternative.

It is Water Purification on a bulk basis only.Good quality and low price.

Service Offering

There are no chemicals, nor regenerated waste to be handled or concerned with on-site. 

Ease of installation. Space is another important factor. . Carbon (used for pre-filtering). The client does not have to incur substantial

capital costs to install an in-house Water Purification Plan.

The company also saves by not needing experienced technicians to maintain an in-house plant.

Future Product and Services

Company plans to expand sales of filters and DI cartridges.

Pure life cycle Industries also has plans to develop a reusable shipping container for its smallest DI exchange tank so that this can also be shipped via UPS.

Pure life cycle Industries plans to offer service contracts to maintain this equipment at the customer's location.

This product will be marketed on a website, as well as through conventional direct mail and yellow page advertising.

Industry Analysis

The company has grown from Rs1 billion to over Rs5 billion in the past six years

The industry for providing Water Purification service is dominated by many small companies.

Industry Participants

Industry participants are varied, as there are several means of obtaining purified water. There are companies which design and engineer reverse osmosis equipment. This equipment has a sizable share of the water market at the end close to the municipal water inlet.

Some industry participants are primarily engaged in water softening and water filtration for drinking and household purposes. These companies may also utilize green sand to remove iron and magnesium hardness derived from aging municipal piping systems.

In short, there is a full range of industry participants representative mainly involved in private households, to large companies involved in engineering, design, consulting, component manufacturing, waste water treatment, etc.

Keys to Success

Good quality control in the factory. Customers for high purity water have a very low tolerance threshold for flaws. 

Fast response. In the case of most of pure life cycle Industries' customers, the cost of the water is not a major element in their overall costs, but a very expensive shutdown could result due to poor or slow servicing. 

High-profile allegiances. Key to overall company success is connected closely with success in achieving the goal of developing a dealership network of service-oriented water companies.

Critical Issues

Expand at a rate not for expansion itself, but to properly serve existing customers.

Pursue controlled growth that dictates that payroll expenses will never exceed sales revenue.

P U R E L I F E C YC L E I N D U S T R I E S ' M A R K E T I N G S T R AT E G Y W I L L B E T O E X E C U T E A N D

C O M M U N I C AT E I T S VA LU E P R O P O S I T I O N O F S E RV I C E A N D M A R K E T S E G M E N TAT I O N

A DVA N TA G E I N P R OV I D I N G WAT E R P U R I F I C AT I O N FA C U LT I E S T O T H E

C U S T O M E R S.   T H I S W I L L B E E X PA N D E D O N I N U P C O M I N G S E C T I O N S.

Marketing Strategy

Mission

Pure Life Cycle Industries' mission is to segment the market for pure water by providing products to specialized industry sectors that are otherwise not properly serviced by large pure water suppliers.

Marketing Objectives

Marketing ObjectivesMaintain positive, steady sales growth each

quarter. Achieve increase in market penetration

every two quarters. Generate brand equity so that Pure Life Cycle

Industries becomes a household word within the industry.

Financial Objectives

Decrease fixed costs by increasing the sales base, leveraging economies of scale.

Increase profit margin by 2% a year through operating efficiencies that are then passed throughout the organization.

Do not decrease research and development, as a percentage of sales, regardless of the economic climate or market position.

Target Markets

Hospital Dialysis Units

Electronic Manufacturers

Machine Tools and Parts

Other

Positioning

Pure Life Cycle Industries' ability to regenerate Pure Water on For Specific basis, rather than only bulk, is a capability that should provide quick and easy entry into the user market where the highest water purity is needed.

The second most important position statement is Pure Life Cycle Industries' concentration on the Water Purification business. This concentration will force Pure Life Cycle Industries to provide a higher level of service, and more quickly, too..

Strategy Pyramids

Position itself as the premier service provider of Water Purification equipment & quickly developing market penetration.

Create customer awareness regarding the products and services that Pure Life Cycle Industries offers.

Build a network of dealers that can assist Pure Life Cycle Industries in the distribution.

Build a large foundation of satisfied, repeat customers. 

Marketing Mix

Pricing:Pure Life Cycle Industries can charge a

higher price for its High Quality Pure Water.

Wholesale prices have been established to encourage the quick formation of a dealership network. Dealers are afforded a 33% discount.

Marketing Mix Con…

Distribution: It will utilize a network of water service

companies. These companies will be carefully chosen for their quality of service.

An arrangement will be set up whereby the distributor will offer Water Purification service along with its other water services.

A 33% discount off the retail price should be adequate to satisfy the distributors.

Marketing Mix Con…..

Advertising and Promotion: Promotion to Pure Life Cycle Industries end-users. Promotion to wholesalers.  Promotion to wholesalers should receive

primary stress due to the extended reach made possible by the wholesaler network with its existing customer base.

The first method will be advertisements.  The advertisements will be placed in industry journals, not only the water purification industry, but industry journals of the customers.  This will help Pure Life Cycle Industries develop brand awareness.

Another method of communication will be participation in trade shows.  Being a part of the trade shows is almost a requirement these days and Pure Life Cycle Industries will have a significant presence. 

The last method of communication will be a roving sales force whose task it is to set up a dealership network.

Marketing Mix Con……

Customer Service: The customer's expectations must be

exceeded, always.  The only way the company can succeed is if they ensure all of the customer's needs are being met and the customer leaves the transaction with the feeling that they were truly appreciated.

Marketing Research

Pure Life Cycle Industries performed comprehensive amounts of market research before the initiation of these business plans. .

The owners were aware when they entered the industry that at some point in the future they desired to operate their own business instead of working for someone else.

Financial Overview

Break-even point

•The break-even analysis indicates that Rs55,686 will be needed in monthly sales to match the total planned expenses

Break-even Analysis

 

Monthly Revenue Break-even Rs42,151

  Assumptions:

 Average Percent Variable Cost 30%

Estimated Monthly Fixed Cost Rs42,121

Sales Forecast

Sales are expected to be Rs24,000 monthly, exclusive of rental revenue

Once the 80% capacity utilization level is reached (October 2012), unit sales will grow by 5% in year two and 5% again in year three. This growth can be achieved within the capacity limits of 100 cu. ft. daily (26,000 cu. ft. per annum) without increases in production labor

Direct unit costs for years two and three remain at the level of year one.

Rental Income

Half of all directly-generated sales will involve rental tanks i.e. 534 cu

All rentals will be in 12 inch tanks holding 3.6 cu.

Rant Rs40 per tankTotal direct sales in October = 267 cu. ft October will see rental income of Rs1,480

Tank Sales

Sales of tanks is assumed at only five percent of the number of monthly rental tanks

Sales price of a tank Rs1,200

Cost of a tank Rs450

Marketing plans

Marketing Budget

Marketing Expense Budget 2012 2013 2014

Advertisements Rs96,500 Rs110,400 Rs120,000

Tradeshows Rs25,000 Rs30,000 Rs35,000

Other Rs108,700 Rs115,000 Rs120,000

  ------------

------------ ------------Total Sales and Marketing Expenses Rs230,200

Rs255,400 Rs275,000Percent of Sales 29.20%

13.44% 12.03%

Marketing Activities

Advertising Start Date End Date Budget Manager Department

Marketing plan 1/1/2012 2/1/2012 RS0 Atif Marketing

completionsAd campaign #1 2/1/2012 6/30/2012 Rs39,000 Atif

MarketingAd campaign #2 7/1/2012 12/30/2012 Rs57,500 Atif

MarketingTrade show #1 3/1/2012 3/15/2012 Rs6,000 Atif

MarketingTrade show #2 6/1/201 26/15/2012 Rs9,000 Atif

MarketingTrade show #3 9/15/2012 10/30/2012 Rs10,000 Atif

Marketing

Totals Rs121,500

  

Controls

Revenue: monthly and annual, performance compared to planned sales projections.

Expenses: monthly and annual, compared to planned expenses.

Research and Development: as a percentage of revenue.

Customer Satisfaction: to result in repeat purchases and generating active customer referals.

Difficulties and Risks

Problems generating sufficient sales

Overly aggressive and debilitating actions by competitors

Barriers developing a large network of

supporting dealers.

Worst Case Risks May Include

Determining that the business cannot support itself on an ongoing basis.

Having to liquidate equipment or intellectual property to cover liabilities