PROJECT ON KHUSH

AABProduct of University of

Sargodha

• Sultan Mahmood(Mission Statement, Vision)

• Aasma(Hidden Opportunities, Uncovered Forces)

• Zamara(Market Trend and Market Analyses)

• Khadija(Environmental Situation)

• Sadam(Our Target Market)

• Maryam(Direct/Indirect Selling Modes, Channels of

Distribution)• Fatima

(Some Other Promotional Tools)• Nouman

(Possible Packages)• Samia

(Innovations in packing)

Our Mission Followings are the points on which we should emphasis for our Mission.

1.Being a product of an educational institution, Khush Aab is brought in as an ambassador of Awareness and Education

2.The wellbeing of the people of area is an other mission

3. We had an attention about the problem which people are facing and we did practical effort to provide good drinking water to people at very low cost.

Mission StatementOur

Statement

Khus Aab is not tasteless It has taste of awareness It has odor of education

What Awareness & What Education

AwarenessIt was found by our institution that how much the water used by people of our area is destructive. So had a mission to let the people aware about the harms of water which they are using.

EducationEducation is the main purpose for which our institution is running. We tend to educate the people of our area by all means. Khush Aab is also one of those tools. By which we want to improve the mantel approach of the people of area about the drinking water habits

Khush Aab-A Practical execution

Almost all the educational school of thought know that water is injurious for health. But among all of them, only University of Sargodha worked practically in this regard and introduced a product, in name of Khush Aab which is a pure drinking water added with mixing of essential minerals are added and of course it available at very low cost.

Vision Our vision is to launch Khush Aab at District then provincial level at last at national level.

At present our generation is sufficient to provide water inside the UOS and some areas outside.

However, after the completion of new plant we will be able to distribute water throughout the City.

As National Bank of Pakistan is also lean to provide us finance, so if we get success in our city, it will be possible for to increase the area of distribution.

Khush Aab project

Hidden OpportunitiesUncovered forces

Social MarketingIt’s a quality oriented products which focuses only on the welfare of human beings not hanker for profit, profit and only profit.

Competitive advantageThe competitive advantage that we have in our product is low price as compared to other products of pure water. No doubt it’s highly affordable for those customers having low income as well as for upper class.

Hidden opportunities

Hidden opportunities Sense of belongingness:It’s a local product prepared by UOS and Sargodha city as production place of KHUSH AAB. It’s no doubt a big break for us to promote this product by developing a sense of belongingness among the customers of Sargodha. But it should be done on the initial stage, when we are to capture local marketEasy Access to Customers:At present our target market is Sargodha & we can easily access to customer having no difficulty related to culture and buying behaviour

Environmental room for our product:Drinking water of this city is polluted so pure water has become a basic necessity of its residents they can’t do away without pure water and a person is always motivated by his need .

Hidden opportunities Product of Educational Institution:Khush Aab is prepared by UOS, an educational institute, so most of the people will like it, as every person has an association with education and will always like educational cause. We must present this product associated with education.

We got Opinion Leaders:Professors and lecturers are known as well educated people in the society. They are just like opinion leaders in many affairs. We got 620 teachers in UOS, and they can become very effective for us if their authority in the society is properly utilized and if they are given certain encouragement for use of Khush Aab

Hidden opportunities Future Extension:National bank of Pakistan favoured to do investment in this project of UOS. So the finance for investment will not be our main problem. Further, Having an honour for UOS this product may become a direct relation in the world of business service and Education.

Uncovered forcesCurrent Market Share:Having no market share this product is less able to capture market at a large scale.

Unpopularity:This product is unpopular among customers and no promotional campaign has been made. competitive products are favoured because they are popular. So huge marketing campaign will requiredBranded Products:It’s a general trend that customers favour international products because they consider them more benefited, valuable and qualitative then national products. It will be difficult to break this trend

Uncovered forcesPromotional Campaigns:A large number of media campaigns are working to promote competitive products so these products have become so famous. Which is a tough call for us. And in future, we might be unable to handle it, if any huge promotional campaign come from them to fail us.Power Supply problem:We are still facing shortage of power supply which has reduced our production.

KHUSH AAB

MARKET TREND OF

BOTTLED WATER

Current Situation of MarketBottled water like nestle , Aquafina and kinley

etc etc …are far more expensive than tap water or a reusable water filter due to its price which is not accessible to the lower class people. They preferred to use water in boiling form.

Water is manifest in Pakistan with an estimated 44% of the population without access to safe drinking water. In rural areas, up to 90% of the population may lack such access

Although there are more than 100 companies are providing bottled water to Pakistani consumers. This number is at its highest during the summers when the demand is also at its peak.

38% companies do not meet the safety standards of the Pakistan Council of Research in Water Resources (PCRWR) and are blacklisted. Most of the rest tend to the market only in summers to benefit from the excess seasonal demand

The major players in the bottled water industry that pose serious threat to Aquafina are Nestle and Kinley. Both of these companies have strong customer bases, loyalty, equity, and offer almost a similar product

Analysis of Market

Analyzing the market means getting the information about the current market trends. The needs and wants of the customers are identified; the availability of the products is monitored.There are different ways, which are adopted by Nestlé and other companies to get the information of the market.

Sales Department: Sales department is a primary source of getting

the information about the market. They actually visit the market and find out that who are the competitors. They also collect the complaints of the customers

Customer Service Department: In this department, customer’s complaints are

collected which are gathered through the sales force or directly submitted by the customers .

Research and Development Department The customer complaints are forward to the R&D

where research is conducted. The results of the research and decisions are then transferred form R&D to localized offices.

MaRket TreNds

Aquafina:Aquafina is a brand of purified bottled

water products produced by PepsiCo consisting of both unflavored and flavored water.

The main competitor of Dasani, Aquafina and of Course made by Pepsi. Aquafina was the clear winner as the best water tested by far.Aquafina tested at 2ppm. The cleanest and purest bottled water on the market today is clearly Aquafina.

MARKET TREND

NestleNestle occupied 57% of drinking water market

in all over the Pakistan.By contrast, Nestle is less visible in the aqua

drinks market. Revenue growth at its bottled water business may slow to 3 percent next year from 5.2 percent in 2011 and an expected 3.2 percent increase in 2013, according to Zuanic. Still, Nestlé's higher growth in 2010 and 2011 was partly due to a low comparison base and growth of between 3 percent and 4 percent may be a “more normal” range for the company

Practical Market Research

First of all we visit the Q's international hotel and meet with the hotel manager. They use the Nestle mineral water 1.5littre bottles at a price of RS. 31 and the daily use are 200 bottles. They replace nestle mineral water with Aquafina because customer complaints that’s quality are low. They have contract with the Nestle but they said that if we provide them the Khush Aab mineral they agreed to purchase

After that we visit the Dubai Islamic bank they have contract with the al Baraka mineral water. They get 19 liter bottle at Rs3000 unlimited per month. They said that we follow head quarter orders

After that we visit the Burj Bank they have also contract with the al Baraka mineral water. They get 19 litter bottle at Rs 60. They are able to purchase Khush Aab.

After that we visit the bank Alphabet they use nestle mineral water and have a contract with nestle. They get 19 litter bottle at Rs 100

After that we visit the bakers &baker shop they sold nestle and kinley mineral water. They sold nestle 1.5 liter bottle at Rs 45 and get 10% profit from company they also sold 600ml bottle at Rs25. They sold kinly mineral water 600ml and 1.5 liter bottle at Rs 20 and Rs 40 respectively and earn profit Rs 3 and Rs 5 respectively

After the market analysis we conclude that all the banks and the Hotels agreed to purchase the khushab mineral water. And we conclude that the mineral is used only in the banks and in few hotels.

SuggestionInitially we should also go for a proper survey

to know the current Situation of drinking water habits of people

If we want to analysis the market and get feed back of the customer we must made the sale department, customer services dept and R&D department, that may be held by the Business, Commerce, Mass Communication Department of UOS

We must try to break down the trend of nestle, acqafina etc etc… through providing superior value to customer & start outstanding promotional activities with a view of Education of people

OUR Target Market

Today it is impossible to go for mass marketing strategy. So we should have to select a certain market section to target.

Target market means to select particular people to serve, after analysing the market properly

What Should Be Our Target Market

Lower Class Middle Class Higher Class

The concentrated area shows the social class which we should target.

It means Upper Lower, Full middle, and Lower Higher would be our target market

Why Not To Go For…Why not Lower Class

It would not be possible for people of lower class to pay money to have purified water

Why not Upper Upper ClassIn our area, rich people like to just waste out their

money in purchasing costly commodities. It will take some time for them to realize that Khush Aab will lead them to rational approach. So initially, we should not target them

Why To Select Such Slot

Low

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Mid

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This particular section of market will be suitable, as:1. This slot will have buying power to buy

Khush Aab, as most of them already pay water suppliers.

2. They are mostly erudite, so it will be possible for us to advocate our point easily i.e. Awareness and Education

SOME OTHER AREAS TO TARGET•Offices:The offices involving the banks, telecom sector franchises or customer service centre of Sargodha are our target in which we can offer our product.These offices are visited by a majority of people. So it will be free advertisement also.

•High Rank Private Schools:Those private schools who charge high fee that 3000-4500 per month would be our target market. The students and families of students of these schools will get influence if Khush Aab will be used in these institutions.

•Hospital Canteens:Some popular hospitals situated in Sargodha provides an opportunity for our product by offering special packages to their owners.If Khush Aab captures the canteens of most of the hospitals, the people will have a mindset that Khush Aab is a medicated product

•Girls & Boys Hostels: All private and government hostels of boys & girls also face a problem of pure drinking water we can also capture them by offering a special student package.It will also help us to get brand loyalty of youth

Hotels and Shopping Malls:These places are becoming a most popular place visited by many of people now a day. Khush Aab can be sent there for the use.So these hotels and shopping malls can become a constructive place for KHUSH AAB. They can also become the source of its promotion.

Distribution Channels Product Distribution ChannelsDEFINITION:Product distribution (or place) is one of the four elements of the market mix. Distribution is the process of making a product or service available for use or consumption by a consumer or business user, using direct means, or using indirect means with intermediaries.

Distribution ChannelsDirect retail distribution channels It means to distribute the product on

the retail centres directly. This channel involves comparatively less cost of placement.

We can distribute the Khush Aab if the retailers directly come to the plant and buy it.

Direct by means of the internet or catalogue – Using your own e-commerce site or a catalogue is a fantastic way to engage consumers directly and repeatedly.

Distribution Channels

Direct by means of a sales team – This would be your own internal sales staff. You could use one team or many different teams that focus on different segments of your market. Wholesaler or distributor – Companies that buy bulk quantities of products from manufacturers and then resell them in smaller amounts to retailers or other resellersDealers – People or businesses who buy inventories of products from manufacturers or wholesaler or distributors, and then sell that inventory to consumers by means of a retail space.

KHSUH AAB

MODES OF SELLING

Selection of SELLING MODE:Direct Selling: It is the marketing and selling of products

directly to consumers away from a fixed retail location. In this mode the goods are presented directly to the customer even at their door step.

• Indirect Selling Mode

The sale of a good or service by a third-party, such as a partner or affiliate, rather than a company's personnel. Indirect sales are often made through resellers, such as specialty stores and big box retailers

Benefits for the Consumers:

Direct Selling: Indirect Selling Mode

Reduce the cost of product by eliminating middlemen

The direct selling distribution method has no boundaries

Allows a connection with consumers

Provides convenience and service to customers

Removes the problem of availability of man power

Allow to access more area

Middle man can become our representators

DISADVANTAGESDirect Selling: Indirect Selling Mode

ExpensiveTime ConsumingLimited CoverageInconvenient or

ObtrusiveFace problem of lake of

human resourcesImpossible to go home

by home.

Increase cost of productCareless approach by

the wholesaler and retailer

Increase distance between the producer and user

No direct relation with the customer

OUR PROSPECTIVE(what should we do)

In my opinion firstly, to capture the market and consumer’s mind we should use indirect selling mode as middlemen are more trained persons and after that we should use direct selling mode to minimize expenses of middlemen

Utilizing Human Resource of Students It is though difficult to utilize the students for the sale of Khush Aab. It cannot be done with giving them some incentive.

Incentives:A package can be given to them in form of commission in certain percentage. May be 5% or 10 %.Restriction: A maximum amount should be fixed up to which student a can earn, so that the focus of students should not divert their focus from their studies, may be 4500 per month.

Ways To Access Market Effective

Concession:To promote KHUSH AAB water we should give concessions to those customers who purchase our product in bulk quantity. Possible concession are discussed in the end of reportDemonstrations: It means the physical presentation by the sales person to the prospect of how a product works e.g., an exhibition at supplier’s premises.

Demographics: The study of information about the people’s lifestyles, habits, population movements, spending, age, social grade, employment, etc., in terms of selling and buying behaviour, any one selling to consumer sector will do better through understanding relevant demographic information.Both of the Demonstration & Demography would be done by the Student Force.FABs: It involves the Features, advantages, benefits, the links between a product description, its advantages over others, and the gain delivered by customer for using it.It can be done by proper advertisement.

Influencer: A person who can persuade and attract potential customers towards a particular product is called Influencer. We need such person to persuade people to buy our product KHUSH AAB.Our Professors would be the influencers for our product Profit Margin: It is the difference between cost (including or excluding operating overheads) and selling price of a product or service.Initially, we should keep our profit margin low, which is 60%-70% on 19litre bottle, and should give middlemen more profit.

Research: It is an act of gathering information about a market or customer, which will helps to know the progress or enable a sales approach. For this we should conduct a survey to gather such information Packages: We should offer different packages to increase our sales.They should provided for the students, professors, home & office consumptionMarket Sector: A part of market that can be described, categorised and then targeted according to its own criteria and characteristics.Our target market would be based upon the low price and connection with educational purpose

Uniqueness: A feature or service or supplier peculiar to a product or service or supplier, no competitor can offer it. We would bring uniqueness in KHUSH AAB to capture customer’s mind by changing the packing or giving something new

AIDA

The AIDA process applies to any advertising or communication that aims to generate a response, and it provides a reliable template for design of all sorts of marketing material. A- ATTENTION:In this step the attention of people is grasped by using some certain Attention lines.Our attention lines would be same as mention in the mission statement… Khush Aab has Taste of Awareness…it has odour of Education

I-INTEREST:It means to keep people interested in the advertisement To keep the people interested in Khush Aab, we should make people aware the harms which they are getting from Khush Aab.Further, we would educate them about the benefits of using ozone mixed waterAnd we would also tell them about the historical information of Khush Aab name.The people would be given knowledge, how much they can save yearly from the money they spent on medicines, if the use pure water

D-Desire:The desire means to create an urge in the minds of customers for purchasing the product; this can be done by mentioning the competitiveness advantages.For Khush Aab, the desire can be created by exploiting the low price of productThe supervision of PHDs doctors of UOS should be told to peopleBy creating a cultural touch and exploiting the sense of belongingness i.e. Khush Aab is product of SargodhaBy telling the people that, the profit of Khush Aab is also used for Educational purpose

A-ACTION:It means to enforce the public to take a practical action to buy the product at the scale which we want them to. It can be done by giving a certain types of packages to the customersFor Khush Aab the possible packages are to be discussed in the other part of

BEST MARKETING STRATEGY FOR KHUSH AAB

Firstly we have to make a strong bombardment of advertisement before its introductory stage to rise interest in potential customers and when the desire has been created in them than supply should be short in market with respect to demand i.e., 10% or 20%. By this there will be a curiosity in people about our product and in this way our sales would be increased.

Reinforce The Brand Image Within The Organization:To make our product a brand, firstly we have to

promote it in our own organization.Whole faculty members are opinion leaders so

they should persuade a lot if people will also start using it.

For this, Huge type of campaign should be held inside the University to urge both the teachers and the students for use of this water. Certain seminars should be held inside the UOS in which the Khush Aab can be properly advertised.

The banners, small posters, wall chalking, might be the tools for this.

Khush Aab project

Promotion tools for Khush Aab1. Nationally Used Tools2. Internationally Used Tools

Promotion tools

the techniques and material used by those who are involved in the promotion of product .

National promotion tools

Advertising Sale Public relation Personal selling

1. AdvertisingIn advertising first thing we create demand for Khush AabWe visit different hospitals & research the place where need our Khush AabConvince the doctors to purchase our Khush Aab through giving them incentive & we give gifts them on which the doctors name printedProvides free samples to publicWe visit schools & college canteens and convince canteens owners to purchase our Khush Aab by giving them incentive that we provides them Khush Aab with better quality & low prices as compared to other mineral waterWe visit different hotels and convince their owners to purchase Khush Aab

After the demand creation next thing the availability of Khush Aab

Our marketing person has effective communication skill and he has complete knowledge of Khush Aab. They communicate with public at strong footing and effective body language.

2.Sale promotion Sale promotion tools like coupons, contents,

premiums and they act as communication medium and promote sale . Through these tools we gain attention and provides information about Khush Aab.

3.Public relation New stories and feature articles are more

authentic and credible than advertisements to reader. Through public relation we can capture the potential buyers and convince them that they use Khush Aab.

4.Personal selling (by students) Through personal selling we promote the

sale of Khush Aab. Through it tools we can receive immediate feed back about Khush Aab.

International promotion tools

Personals visits Trade fair In store promotion Web

advertisement

1.Personal visitsIf we seriously plan capture a large area of market business of Khush Aab a personal visits to areas is must . Make ensure you know the key persons. In our market we must know about the culture peculiarities in the target market.

2.Public fairThrough Public fairs inside the UOS we can capture the public attention and convince them to use Khush Aab. In that type of fair, we can pursue the people about drinking the water and also other triumph of our University.

International promotion tools

International promotion tools3.In store promotion:

Influencing the consumer decision making process at the actual moment that a decision is being made . Fast moving consumer goods gadgets and items a lot of purchases are made by impulse buying. Through these tools we can promote Khush Aab sales.

4. Web advertisement:As a promotional efforts one has the possibility

to put advertisement on the web . By using buttons and banner positioned on other web sites. Khush Aab advertisement on web is the best way to catch the interest of web surfers and them to our website.

Nominating A Brand AmbassadorIt is an internationally used tool to promote the product. Most of the companies employees an ambassador of their product who represents the it.It is mostly a well known personality. Today the person given blow might be the best Brand Ambassador for any product due to the fame he earned In current period in our country.Though we can not

access this person for our cause

Then who would be our Brand Ambassador….?

According to my opinion Muhammad Hafeez would be the best ambassador for Khush Aab.He is the captain of T20 cricket team. He is currently part no of no advertisement campaign of any product. And most importantly he is from Sargodha. He is the person who will attract youth specially and persons of all ages generally.

Increasing sale through packagesMake student package for all students who

studies in university and collegesProvide our product of 600ml on canteens at

price of Rs 15 exact Giving Rs 4 profit margin to retailer .Because

other companies sale their product at Rs20 to 25 and give Rs 3 to 5 profit margin to retailer .

First time we give one bottle of 600ml free to retailer who buy 2 pack of our 600ml bottles.

Marriages are the most important area where our product can get popularity (specially marriage halls. Make package for marriage hall, hotels and restaurants. We provide our product of 1.5 litter bottle at Rs 28. Because

Because other companies provide their product at Rs 30 t0 36.

We also provide our product 1.5 litter at different shops Rs 35 and give Rs 5 profit margin to retailer.

Because other companies sale their product Rs 35 to 45 give Rs 6 to 7 profit margin to retailer.

Make package for banks, shopping plaza and for retailer.

We provide our product 19 litter to banks and shopping plaza at Rs 60 .Because other companies provide their product at Rs 50 to 100.

We also provide our product at Rs 2700 unlimited per month for offices, 2400 for homes with some limited supply

Make package for home usage of all students who study in university and colleges affiliated with UOS, at 1800 Rs per month for supply of 19 litre per day.

TransportationThis topic refers to discuss the possible ways or movement of the Khush Aab to from the plant to the place nearest to the customers

Modes of TransportationRail TransportAir TransportSea TransportCourierRoad Transport √

As initially, our goal is to go for district level, so we are to select only road transportation on the bases of points given in circle.

As Khush Aab mineral water is promoted to regional area its transportation cost is low

It has to bear less transportation expenses as compare to other brands.

It can hire fast means of transportation with less cost.

It should ensure fast means so that timely supply to different areas of Sargodha can be assured.

Transport Policy,Khush AAB transport policy should focuses on the following five key areas: Reducing distance to consumers Using alternative transport Exploring new technologies The buses of UOS can be used for the

distribution of the Khush Aab at for place

The current suppliers of water doing work on Autos Rikshaws by giving them certain incentives. That may be monthly wages . It will make their financial position stronger.

CompetencyDefinition:Competencies are those measurable or observable knowledge, skills, abilities and other behaviors critical to success in a key job role or function.

CompetencyFollowings are the basic competencies which Khush Aab got. They are the basic points on which our promotional campaign should be based.• Proud to be an educational institute’s

product• Profit to be utilized on educational

purposes• Knowledgeable le Faculty ( 40 PhDs}• Quality of the Khush Aab• Resources of University (Radio,

Magazines,Buses)

Possible Harms of Khush AabAccording to Wagner and other researches:‘’if you drink water from plastic bottles, you have a high probability of drinking estrogenic compounds ‘’ It happens if the bottle is kept in heat. It can be overcame if wrapper is wrapped on the complete bottle.Exploiting this point will also give us a competitive advantage.

Innovations

The wrapper which we are using on Khush Aab have nothing special. However it can be made different from other brands by:

1. We can show the steps of process through which this water passes

2. We can also offer to visit the plant and see the whole process

3. The cultural touch can also be given by giving picture of trees(may be orange trees)

4. Making our mission, awareness and education, we can also show a picture of students or university or may be books

5. The wrapper should be given on the whole bottle.

By these points more attraction will come, as instructed to us an instructor hired for promotion suggestion to whom we have paid 60000 for nothing.

1.Changing the packing

1.More Cultural touch

In our area people are very touchy about the culture. They like to remain connected with old traditions. Being a product of University, Khush Aab should try promote the old tradition of people of area and also whole Pakistan, related to water i.e. use of Pitcher.

Innovations

For ExampleIn Sargodha, there are many sophisticated restaurants in main vicinities,But people like to go to 15km far, in hotel named Mehman Seray or Apna Vehrra etc, which are known for their traditional environment. This shows that how much people are connected with their traditions.

1.More Cultural touch

Innovations

How it can be donei. After some time, when the

product will prevail in the market, we will introduce a pitcher system

ii. As the customer refills their 19lil. bottle, The will also refill a pitcher

iii. We will contract a supplier of pitchers

iv. The pitcher will also given a lid v. A wrapper will also on the

pitcher

1.More Cultural touch

Innovations

Drawbacks of Pitcher System1. Safety of Pitchers

Undoubtedly the safety will be a real concern . But the pitchers were used very safely 15-20 before. And ratio of breakage was very less. Then why it can not be used safely today, when people are even more sophisticated. Moreover, Children are supposed to be breakage agent. And today, number of children in homes have also decreased.

1.More Cultural touch

Innovations

Drawbacks of Pitcher System2. Purchasing of Pitchers

Other important concern will be the purchase of pitchers. But a contract can be done with any supplier of Sargodha.After all customer also purchase 19lil bottles and pays 520 for its security.

A FactIt is also a fact that the people who will purchase this brand will be very less. But it will not affect our earning. Our investment on this system will be only purchase of some pitchers. Initially we may purchase only 100 pitchers, which may only cost 25000 RS only.

1.More Cultural touch

Innovations

Lid on Pitcher 

It is also possible that people may thing water by which pitcher is refilled is not passed through the proper process.So we should start this system after when we will become a trusted name.

1.More Cultural touch

Innovations

Pitcher System

Innovations

Core BenefitThe benefit which we will earn from this system is that we will make the people realize that University of Sargodha, along with the doing work for the awareness of people, it is tended to promote the tradition of the area.

As same is the reason due to which we gave the name to our water which was given by Sher Shah Suri in 1540.