X 20 : The Wate r w i th an X !M a r k e t i n g P l a n

AgendaAn introduction to Zap Waters

The Strategy Vision and Mission

Our goals?

Setting X2O apart

An internal and external analysis

X20- the product

The marketing mix

The financial side

Structuring the marketing unit

Implementation

Evaluation and control

ZAP Water History

• Founded in 2007

Product line

• Prior products• X2O

Corporate Social Responsibility

• Product health effects

Competitive compensation packages

• Profit sharing incentives

Vision

To be the most healthiest and appealing beverage provider in the

country.

MissionX2O will transform the natural drinks

industry through the provision of a healthy and irresistible beverage that will appeal to

the coffee lovers as much as to those seeking natural drinks and this too at an

affordable price.

Non FinancialGoals

Provide highest-quality beverage at competitive price

Promote social responsibility

Create and maintain plant that minimizes negative

environmental impact

Promote socially responsible image to college students

Enter two new markets every two years

Achieve national distribution in three general store chains

within five years

Financial Goals

Launch product and sell 100,000 units the first year of

production

Increase sales by 15% each year for 5 years

Implement advertising campaign to enhance consumer awareness

Maintain a wage 20% higher than competitorsIn the second year of

operation, commence advertising beyond the college market and add working adults

to the target market. Grow steady market share to 13% over five years

Setting X20 ApartC o r e C o m p e t e n c y a n d S C A

Manufactured, marketed at competitive cost

Unique taste

Provides important vitamins and minerals

Extra boost of caffeine for coffee lovers

Offering

• Ideal for target market

Distribution

• Accessible to academic &corporate sector

Personnel

• Highly motivated

Finance

• Capital provided by SMEDA

S t r e n g t h s

We a k n e s s e sOffering

• Crowded drinks market and some caffeinated beverages exist already

Distribution

• Must convince stores to give shelf space

Personnel

• Workforce Production work can be monotonous

Finance

• As SMEDA are only providing initial start up funds

Consumer Social

• College students receptive to new ideas

Competitive

• Unique product

Economic

• College students have more disposable income than in previous generations

Legal

• We maintain highest standards and comply with Pakistan Food Association

O p p o r t u n i t i e s

T h r e a t sConsumer Social

• Customers may be loyal to other caffeinated beverages

Competitive

• Cutthroat competition between colas and coffees

Economic

• College students have more choices of where to spend their income

Legal

• Any new legislation must be complied with

Industry Analysis

Initial ProductionTwo lines

Each devoted solely to 500 ml bottles

Demand Increase

Add a third and fourth line to accommodate 20oz &1.5 liter bottles

Anticipate need for 3rd &4th lines within 12 months. Each line will be fitted, one at a time, for 20 ounce and 1.5 liter bottles

We will continue to source bottles from our existing supplier to benefit from the

economies of scale of an existing partnership.

1.5 liter0

20000400006000080000

100000120000140000

Product Ob-jectives

Year 1Year 2Year 3Year 4Year 5

Unit Type

Un

its S

old

500 ml

Target Markets

College Students(Primary)

Corporate Sector(Secondary)

Why: Highest caffeine consumers!

Points of Difference and Positioning

WaterHealth

CaffeineSatisfactio

n

Vitamins

Minerals

Fluoride

X20

two in oneat the cost of

1

Marketing MixProduct

• X20 Water is clear; it looks just like regular bottled water.

Price

• Priced competitively with other bottled waters• 500ml bottle of water, is mostly sold at a price of Rs15 to Rs 20; an average of Rs 18. • Similarly a 1.5 liter bottle will be competitively be priced at Rs 100

Promotion

• Billboards in and around the campus area• Internet banner ads on websites frequented by college students (Facebook)• Product giveaways coinciding with finals week will take place at select outlets along G.T Road

Place

• Grocery stores like CSD, general stores, gas and petrol stations and cafeterias on campus and at local shops• Bottles will be made available at restaurants where other bottled beverages are sold

Year 1 Year 20

2000000

4000000

6000000

8000000

Sales and Sales Commission

SalesComissions

YearRs

Year 1 Year 20

500000

1000000

1500000

Gross and Net Profit

Gross ProfitNet Profit

Year

Rs

Our anticipated capital

requirements total Rs 500,000

Sales commissions will be based on

5% of sales

Questions and Answers