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 4 TH 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 ALLAHWe 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 n

Population & %age

0-14 years 64.5 million39%

15-64 years 94.5 million57%

65 years and over 7.0 million4%

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 14-40But now there are successful in getting this target marketThis time AQAUFINA is focusing on CHILDERNSThat 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 HasTo 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 151500ML 28

DISTRIBUTION

PRIMARY DISTRIBUTION Producer TO distributor

SECONDARY DISTRIBUTION

Distributor TO retailer TO consumer

*ALSO DISTRIBUTING TO DIRECTLY SHOPKEEPERSBECAUSE 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

asddasdasdffgsfdgfgh

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 marketTarget market is same as of AQAUFINAFirst target was to capture people of age 14-40Now kids & children

Point of PurchsePoint 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 attractiveLike 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 181500ML 35

DISTRIBUTIONNESTLE has its own distribution networkSoThey 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