CURRENT MARKETING SITUATION
The source of water is rich in Bangladesh but pure and clean drinking water is scarce which leads human life in safe. For this reason just before the Asia Cup, which was held in Dhaka, Partex Beverage added a feather to its cup, by launching its own mineral water brand, Partex Beverage Ltds. It was introduced in food grade PET in two sizes- 0.5 and 1.5 Liter.
On the other hand, in mineral water industry, Fresh Natural Drinking Water (united mineral water and pet inds. ltd) is the market leader. It is dominating 45% market share and we (Partex Beverage Ltds, Mum Mineral Water) are dominating 35% of market share which indicates us as challenger in market. Other rests of the company are in 20% of market share in mineral water industry.
To be market leader in beverage market, Partex Beverage Ltds will find that several items of product are not available such as: 1 liter, 2 liter, 2.5 liter, 5 liter and 10 liter with filter equipment.
Partex Beverage Ltds mission is to provide value at an economic cost, progress in diversity, and continue to contribute to the growth of industrialization in Bangladesh by being the market challenger so, Partex Beverage Ltd has targeted the people who are conscious about their lives by drinking pure water.
In spite of the intense competition, Partex Beverage Ltds can rely on numerous strength which is mentioned in the SWOT Analysis.
SWOT ANALYSIS OF Partex Beverage Ltds, Mum Plus Mineral Water
The overall evaluation of a companys’ strength, weakness, opportunities and threats is called SWOT analysis.
“S” is for Strength.
“W” is for Weakness.
“O” is for Opportunity.
“T” is for Threats.
Partex Beverage Ltd has much strength such as –
- Partex Beverage Ltds has great company reputation.
- Availability of capital.
- Use modern technology.
- Distinct package and leveling.
- Domestically brand image.
- Customer loyalty.
- Partex Beverage Ltd follows or to obey the guidelines of WHO and BSTI that is rich in minerals.
Partex Beverage Ltd has some weakness in Bangladesh such as-
- The channel of distribution is not strong like a competitor that is market leader.
- Low promotion than leader.
- Low brand awareness and image than leader.
- Law awareness of ingredients than leader.
- Company may suffer from geographical coverage.
- Low R&D than competitor.
Partex Beverage Ltd has many opportunities such as-
- Increasing demand of mineral water.
- Increasing rate of population.
- Mature retail market in Bangladesh.
- Expanding awareness of people towards drinking pure water.
- Availability of raw materials.
Partex Beverage Ltd has some threats such as-
- Too many mineral water companies in Bangladesh.
- Introduction of advance technology.
- Possibility of economic depression.
- Instability of government.
- Political and social distortion.
OPPORTUNITY AND ISSUE ANALYSIS
Partex Beverage Ltd will have strong ingredients in its mum plus mineral water as obey to the guidelines of WHO and BSTI. It package that is plastic bottle is easily portable than other competitors. And their product mix depths will high over competitor that brings high profit margin for company.
Among the issues Partex Beverage Ltd should address the following-
It should increase it ingredients for product than market leader.
It should develop a strong channel of distribution.
It should offer customized applications for business buyer.
It should continuous monitor market and develop R&D.
The ingredients of Mum Plus Mineral Water are below:
Arsenic (as As) Nil
Sodium (as Ca) 4mg/L
Fluoride (as F) 1.0mg
Chloride (as Cl) 250mg/L
Cadmium (as cd) .003 mg/L
Lead (as Pb) .01 mg/L
Chloride (as cl) 250 mg/L
Nitrate (as No3) 405 mg/L
Nitrite (as No2) Nil
Cyanide (as CN) Nil
PH 6.4 to 7.4
Following sections are covered with a hypothetical marketing plan for the mum plus mineral water for the coming year.
There will be two broad types of objectives in its marketing plan-
- Financial objectives.
- Marketing objectives.
Earn annual rate of return on investment of 10% after taxes over the next 3 years.
Achieve first year sales revenue of taka 1crore based on price of taka 12 per unit of 1 liter and taka 25 per unit of 2 liter, taka 30 per unit of 20.5 liter, taka 50 per unit 5 liter and 80 taka per unit of 10 liter.
Produce a net profit of at least taka 50,00,000 by the next two years of operation with a target profit margin of 10% on total sales revenue of 5 crore.
Achieve a first year sales volume of taka 15, 00, 00,000 which represent projected markets share in product line.
Increase second year share to 15% based on sales of five sizes in mum plus mineral drinking water product line.
Increase third year share to 25% based on sales of five sizes in mum plus mineral drinking water product line.
Distribution channel will expand through wholesaler and retailer and own outlet. And special channel will establish through agent in the metropolitan areas and district levels.
Ads and other promotional activities will increase through national and local news paper, radio, TV channels.
Generate 70% brand awareness within the target market customer as well as 80% brand awareness with in the business target market customer by the end of the next year.
On the consumer side: on the consumer side, the target market is all levels (school, college, university) students, all government and private employees,politicial, young people and the people of rural areas and who are suffering from diseases caused by drinking impure water.
On the business side: on the business side, the target market is all wholesaler and retailer and large department shop in the country. These buyers want high profitable product to sales.
Consumers typically choose products and services that give them the greatest value. In that sense Partex Beverage Ltd has decided to use more for less positioning strategy. It will introduce better quality product at standard price for a given level of performance. Partex Beverage Ltd claims that its mum plus mineral drinking water provides the best quality for pure trusted taste at standard price.
Product package is made distinctive than competitor. It is made by hard plastic and portable size. For ensuring purity its mouth is sealed by plastic and hologram sticker. It will be five size with different price, such as taka 12 per unit of 1 liter and taka 25 per unit of 2 liter, taka 30 per unit of 20.5 liter, taka 50 per unit 5 liter and 80 taka per unit of 10 liter. The package will be labeled in proper way so that the customer can know about the quality of product.
Partex Beverage Ltd has used cost based pricing strategy. In case of cost plus pricing it has added a markup to the cost of the product. Different price are developed in different size of product. Partex Beverage Ltd is offered at the following price in terms of different product size:
As taka 12 per unit of 1 liter and taka 25 per unit of 2 liter, taka 30 per unit of 20.5 liter, taka 50 per unit 5 liter and 80 taka per unit of 10 liter.
Partex Beverage Ltd will use marketing intermediaries and partner agencies to bring mum plus mineral drinking to final or business customer. Its distribution channel will like:
Its distribution agencies will be located as its existing mum mineral water: Greater Chittagong, Potiya, Greater Noakhali, and Comilla. Chandpur, Feni, Greater Dhaka, Manikgonj, Norsingdi, Gazipur, Tangail, Mymensing
Sales strategy is directly linked to marketing strategy since all sales will be started in the New Year 2008 on 1st January. All agents will use their van for distributing their products.
Marketing communication mix include ads, sales promotion, personal selling, public relation and direct marketing will be used for creating brand awareness as well as new line for increasing sales. Partex Beverage Ltd will use an ads campaign to built brand awareness and support to distributors for increasing sales. Its TV commercials models are below:
Partex Beverage Ltd conducted a marketing research for understanding the market situation of mum plus mineral drinking water. It will also conduct marketing research to measure mum plus mineral water awareness before, during and after marketing campaign, study consumer satisfaction and identify opportunities for future product development efforts.
Partex Beverage Ltd will be carried out its marketing strategy and achieves its objectives through a variety of schedule programs. At the beginning stage Partex Beverage Ltd plants to initiate a taka 5, 00,000 trade show promotion to educate dealers generate excitement for the product lunch in the next year. As part of this trade promotions Partex Beverage Ltd takes following initiatives:
Leaflet distribution to consumers’ homes.
Newspaper ads has purchased during the first three months of business until an image is built.
TV and Radio ads has also purchased for first six months of business until an image is built.
Partex Beverage Ltd has offered discount to retailers, consumers who buy bulk.
Estimated production cost for 2008
Fixed cost 2, 00, 00,000
Variable cost 5, 00, 00,000
Estimated production cost for 2009
Fixed cost 2, 00,00,000
Variable cost 6, 00, 00,000
Estimated production cost for 2010
Fixed cost 2, 00, 00,000
Variable cost 7, 00,00,000
Communication mix cost:
Ads (among TV, Radio & Newspaper) 20, 00,000
Promotion and others 30, 00,000
Totals 50, 00,000
Ads (among TV, Radio & Newspaper) 40, 00,000
Promotion and others 50, 00,000
Totals 90, 00,000
Ads (among TV, Radio & Newspaper) 50, 00,000
Promotion and others 60, 00,000
Totals 1100, 00,000
IMPLEMENTATION AND CONTROL
Controlling purpose of the plan also allows for month by month comparison of actual versus projected sales and expenses. If any defecate will occur then necessary correction program must be taken for improvement. A strategic plan should be implemented for control purposes. For implementation of this plan, proper attention, patience, carefulness must be needed for achieving goals of this marketing plan.
A hypothetical financial plan of mum plus mineral drinking water is given below:
Profit and loss statement for the year ended 31st December, 2008