Mineral water- Four P's of Marketing; Product, Price, Place, Promotion

Sana Khalid 127Kiran Zahra 1550Sobia Akhlaq 1548Nasiba Waris 139Salma Bashir 126Saba Khursheed 1541Sameera Dar 1542

SANA KHALID-Market research

ROLL NO. 127

Market research is the process of systematically gathering, recording and analyzing data and

information about customers, competitors and the market .

Market Research - The Process

Step One: Define Marketing Problems and Opportunities

Launching a new product or service Low utilization of company's products or services. A poor company image and reputation Low awareness of company and its products or services

Step Two: Set Objectives, Budget, and Timetables

Explore the nature of a problem Test possible cause and effect relationships How much money are we willing to invest in our market research? Detailed, realistic time frame

Step Three: Select Research Types, Methods, and Techniques

Step Four: Design Research Instruments Questionnaire

Open-end questions Close-end questions

Step Five: Collect Data

Clear reliable results under direction ofexperienced researchers

Step Seven: Present and Use Market Research Findings

An organized manner to the decision makers of the business. Weigh the cost of gathering more information against its potential usefulness

Step Six: Organize and Analyze the Data

Once our data has been collected, it needs to be cleaned. Cleaning research data involves editing, coding, and tabulating results .

Planning for Marketing Research

Step 1: Determine the Research Purpose

Explanation Prediction Monitoring Discovery Hypothesis Testing

Step 2: Identify What is to be Learned

critical step in the research process provides guidance on what must be accomplished

Step 3: Research Design – Methods

Descriptive Research Exploratory Research Causal Research

Step 4: Research Design - Data Collection

Acquire pre-existing research Undertake new research themselves Out-source the task of new research to a third-party, such as a market research company

Step 5: Evaluate Data

Incomplete Responses Questionable Entry Data Entry Error

Step 6: Analyze Data

Descriptive Data AnalysisInferential Data Analysis

Step 7: Communicate Results

Report the findings An oral presentation

Market Trends

Customer analysis Choice Modeling Competitor analysis Risk analysis

Name of Brands0.5 liter

1.5 liter6

liter

Nestle, pure life 15 24 60

Atlantis 15 23 57

Aqua Fina, purity guaranteed 15 24 60

Nile, its nature 13 22 55

KIRAN ZAHRA

ROLL NO:1550

Target market are a set of buyers sharing common needs or characteristics that the company decides to serve.

Target marketing involves breaking a market into segments and then concentrating your marketing efforts on one or a few key segments

TARKET MARKET

Three of the most common types are

Geographic segmentation

Demographic segmentation

Psychographic segmentation

TYPES OF TARGET MARKETING

MARKET SEGMENTATION OF CUSTOMER RETENTION

Market segmentation is when you divide your potential market into separate categories or segments according to their individual needs.

Determining your target market

Primarily we are focusing our drive/lunch of marketing NILE (It’s Nature) in Punjab due to the fact that the people in this province are more vulnerable to such sort of inventions/ introductions in terms of

Taste Habits Standards of living

MARKETING

Geographic Segmentation (Punjab)

MAIN CITIES OF PUNJAB

MARKETING IN LAHORE

As its is evident that we are focusing in the province of Punjab at the moment. Again in this province we are mainly concentrating on big cities but more specifically the city of Lahore firstly to begin with. In this way in view of the total population of Lahore which is approximately 8 millions.

LAHORE IS DIVIDED INTO FUTHER POSH AREAS

Lahore is divided in to further posh areas with regard to market segment. These are as follows

Model Town Garden Town Faisal Town Gulberg ‘ Defence Cantt Iqbal town and Johar town

0

50000

100000

150000

200000

250000

300000

350000

Column 1

Graph Showing Statistics

POSH AREAS ESTAMTED

As we have estimated the total population of posh areas as above at 8Lac, It may be safely concluded that in view of high, middle, and average income groups of people resident in these location are to be approved and make them realize the purity of Nile (It’s Nature).Thus in this way we have to target the marketing of Nile between 15 to 20% of the residents of these areas’ of all groups to use this pure drinking water. This will further provide us to speed up our marketing plans for profit orientation in future to the manufactures of the product i-e Nile (it’s Nature)

EXCLUSIVE TARGET MARKET LOCATIONS

• Air ports• Railvay Stations• Bus Station • Hospitals • Tourism Places • Universities and College

What is Product?“In marketing, the term “product” is often used as a catch-all word to identify solutions a marketer provides to its target market. We will follow this approach and permit the term “product” to cover offerings”

Categories of Consumer Products:• Convenience Products – These are products that appeal to a

very large market segment. They are generally consumed regularly and purchased frequently. Examples include most household items such as food, cleaning products, and personal care products.

• Shopping Products – These are products consumers purchase and consume on a less frequent schedule compared to convenience products.

• Specialty Products – These are products that tend to carry a high price tag relative to convenience and shopping products. Consumption may occur at about the same rate as shopping products but consumers are much more selective.

• Emergency Products – These are products a customer seeks due to sudden events and for which pre-purchase planning is not considered.

• Unsought Products – These are products whose purchase is unplanned by the consumer but occur as a result of marketer’s actions.

The categories of consumer products

mineral Water and our Product NILE

(its Nature) comes under the category

of Convenience Product that it is bought

on daily basis. It will be used by ever

class because of its cheap rate, its pure

taste and excellent quality. So we try

our best to let the consumers to buy it

with warranty of its purity and taste

Categories of Business Products Raw Materials

Processed Materials Equipment Basic Components Advanced Components Product Component MRO (Maintenance, Repair and Operating) Products

Components of a Product

• Core Benefits

• Actual Product

• Augmented Product

NILE (its Nature).Its attractive bottle, its aqua color and its pure taste will definitely fulfill the need of our customer. We keep our objective in our mind that is to satisfy our customer in every aspect of our product’s nature. we are sure about our product that it will not only compete with other mineral waters successfully but also will let the people to buy it in future with satisfaction and warranty taste,quality,affordable rate.

Key Product DecisionsKey Product Decisions

• Consumable Product Features • Branding • Packaging • Labeling

Consumable Product Features:

Functional Benefits

Psychological Benefits

• While launching NILE (its Nature) we keep in our mind to fulfill the Functional n Psychological need of our customers. As it is important to open a network at large scale and customers also prefer such products. Among the Competitors that is NESTLE and AQUAFINA.

• NILE (its Nature) can get a good place in the market. Off season launch would make sense as Nestle n even other small competitors would not be expect any new entered.

AVAILABLE SIZES OF NILE ARE:

-0.5Liters

-1.5Liters

-6Liters

BRANDING:BRANDING:Branding involves decisions that establish an identity for a product with the goal of distinguishing it from competitors’ offerings. In markets where competition is fierce and where customers may select from among many competitive products, creating an identity through branding is essential.

BRANDING STRATEGY

Individual Product Branding Family Branding Co-Branding Private or Store Branding No-Name or Generic Branding Brand Licensing

PACKAGING:

• Final Customer Packaging• Distribution Packaging

New Product Development Process:

• Purchase the Product• License the Product• Purchase Another Firm

Nasiba Waris-Pricing Roll no.139

“Price is a component of exchange or transaction that take place

between two parties and refers to what must be given by one party in

to obtain something offered by another party”

PRICE

Importance of price

• Most flexible marketing mix variable

• Setting the right price• Important part of sales

promotion

PRICE OBJECTIVES Maximize long run profit Maximize short run profit Company growth Increase market share Enhance the image of the

firm ,brand or ,product Increase sales volume

• Internal factors• External factors

Factors affecting price decision

Internal factors

• Company and marketing objectives

• Marketing strategy• cost

External factors• Elasticity of demand• Customer and channel

partner expectations• Competitive and related

products• Government regulations

• Price is not a key factor when purchase is being considered.

• One of several variables• Value is perceived benefits over

per price paid• Asses product overall value

Price vs. value

Price strategies• Cover your cost• Test try offering it a different

price points• Offer the item at different

prices to different markets• Include guarantee• Offer different payment

options• Create urgency

SALMA BASHIR-pricing

ROLL NO. 126

PRICING METHODA pricing method is a mechanical procedure for setting prices on a regular basis

TYPES of PRICING METHODS

Cost Oriented Pricing

Market Oriented Pricing

Competition Oriented Pricing

Cost Oriented PricingThis is what where the price of a product or service is calculated and a margin is applied to derive a selling pricing.

Market Oriented PricingInitial price is based on analysis of market research in which customer expectations are measured. 

Types of Market Oriented Pricing

Premium Pricing

Penetrartion Pricing

Skimming Pricing

Economy Pricing

PRICING STRATEGY MATRIX

Competition Oriented Pricing

The firm fixes the prices of products in relation to the competitors prices

PRICING STRATEGYA plan which determines best (at the time of marketing ) price decisions

Quantity DiscountsCash DiscountsLeader PricingPrice liningPromotional Pricing

Only for

Rs.55

Only fo

r

Rs.22

Only for

Rs.13

0.5 liter 1.5 liter 6 liter

TOTAL PRICEWeight Retail

PricesTax@21%

per unit price

No. of units

Total Price

0.5 liter 11 2.31 13 30,000 390,000

1.5 liter 18 3.78 22 25,000 550.000

6 liter 45 9.45 55 15,000 825,000

Aggregate Total Price

1765,000

COST TABEL – NILE, its natureNumber of bottles produced and sold = 70,000

Expected Sales Rs. 14,59,000

Profit @ 10% Rs. 1,45,900

Total cost Rs.13,13,100

Allocation of Cost

Promotion @ 40% Rs.5,25,200

Production @25% Rs. 3,28,300

Pricing @ 15% Rs. 1.96,900

Distribution @ 10% Rs. 1,31,310

Target Market@ 10% Rs. 1,31,310

For Wholesalers

Boxes purchased in a single order

%discount 4m list price

Up to 500 0.5 None

600-1500 1.5 liter 15%

1600-2500 1.5 liter 20%

2500-3500 0.5 liter 40% + free dinner in Pearl Continental

SPECIAL OFFERS

For Retailers

Quantity purchase in a single order

% Discount from list price

Up to 300 0.5 liter/ 1.5 liter None

400-500 6 liter bottle 15%

600-1000 1.5 liter bottle 25%

SPECIAL OFFERS

Hmm……..

........

SABA KHURSHEED

ROLL

NO. 1541

DISTRIBUTION:• IT is the fourth traditional element of marking mix. Allow customers to gain access and purchase a marketer’s product.OBJECTIVE OF DISTRIBUTION:• Our objective of distribution is to create place utility,

the value of having our product where customers wants it & when they want it.

ASPECTS OF DISTRIBUTION: There are two aspects of distribution which are• LOGISTICS: Physical movement of goods• STRATEGY: Who participate and what they do.

DISTRIBUTION DECISIONS: Our distribution decisions focuses on establishing a system that, at its basic level allow our customers to gain access & purchase our product because having a strong product does little if customer is not able to easily obtain it.

OUR distribution decision includes( but limited to):• Assessing the best distribution channel for getting our

product to customers.• Determining whether a reseller network needed.• Arranging a reliable ordering system that allow

customers to place orders.• Creating the best delivering or transportation system.• Establishing facilities for product storage.

TARGET MARKET: Lahore is our target market initially we selected 8 different well known areas of Lahore which are

• 1)Model town 2)Faisal town

3)Garden town 4)Joher town

5)Allama iqbal town 6)Deffence

7)Gulberg 8) cantt

CHANNEL OF DISTRIBUTION: The path or route taken by a product as it moves from producer to consumer is called channel of distribution.

LEVEL OF CHANNELS OF DISTRIBUTION: There are two levels of distribution.

CHANNEL MEMBERS:• Wholesalers• Retailers• Agent• Direct sales force

FUNCTIONS OF DISTRI BUTION: The main functions of distribution are • Information . promotion• Contact . Matching• Negotiation . Physical distribution• Financing . Risk taking

DISTRIBUTION STRATEGIES: Refers to how an organization will distribute the product or service they are offering to the end users at the right place or time.

There are three types of distribution strategies1. Intensive strategy: used commonly to distribution of low priced or

impulse products2. Exclusive strategy: used commonly to distribution of high priced

products involves limited distribution to single outlet.3. Selective strategy: In this a small numbers of retail outlets are

chosen for distribution of products.

CHANNEL DESIGN DECISION: To design our distribution channels we take different decisions and do bellow mention surveys.

WHOLESALING:• It is consist of sales & all activities directly related to sales, goods,services to Business & other org for resale.WHOLESALERS: • He is a trader who purchase goods in large quantities

from manufacturers & resells them to retailers in small quantities.

TYPES OF WHOLESALERS: There are 3 types of wholesalers. which are

RETAILING: It consist of sales & all activities related to sales,goods, services to final consumer for personal & non business use.RETAILER: He a person who buys products relatively in small quantities from wholesalers & sell them in small quantities to final consumer.RETAIL STORE LOCATIONS: We select our retail store location based on following factors,• Populations of customers• Competition• Accessibility

TYPES OF RETAILERS: There are 4 types of retailers which are

DISTRIBUTION COST:

• Total numbers of unit distributed =70,000 units

UNITS GIVEN TO• Retailers = 30,000• Wholesalers = 40,000

UNITS DISTRIBUTED TO DIFFERENT AREAS:

AREAS

MODEL TOWN

FAISAL TOWN

GARDEN TOWN

JOHER TOWN

A.IQBAL TOWN

DEFFENCE

GULBERG

CANTT

TOTAL

UNITS DISTRIBUTED

12,000 units

10,000 units

8000 units

9000 units

14,000 units

3,500 units

6000 units

7,500 units

70,000 units

DISTRIBUTION OF DIFFRRENT SIZES:We are distributed 3 different sizes of “NILE”

Distributed sizes

No.of.units distributed

0.5 ltr 30,000

1.5 ltrs 25,000

6 ltrs 15,000

Total 70,000 units

ESTIMATED DISTRIBUTION COST:

Total units produced = 100000 units

Total units distributed = 70000 units

Total cost of distribution = Rs 131310

Per unit cost of distribution = Rs 1.9

Share of distribution in total cost = Rs 131310

Share of distribution in % of total cost = 10%

Components Of Distribution Cost

Cost of fuel and oil = 18000

Salaries of staff = 43000

Van lease or hire = 70310

Total Distribution Cost = 131310

Sameera Dar-

Promotion manager ROLL

NO. 1542

A form of corporation communication that uses various methods to reach the targeted audience with a certain message to achieve the specific organizational goals.

PROMOTION

AdvertisementSales promotion Public relations Personal selling

Print mediaElectronic media Mass media

ADVERTISING

Form of advertisement which is done before the launch of product to create the curiosity among people.

TEASER

Build awarenessCreate interest Provide information Stimulate demandInducing buyers to

try our product

OBJECTIVES

Official Sponsor ICC Champions Trophy

BUSINESS-TO-BUSINESS

Expo-centre, Fortress Stadium Lahore

COST: Included in the ‘‘CAPEX’’

Duration: The period of 2 months