Mba 7003 MKT
Mba 7003 MKT
Mba 7003 MKT
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International College of Business and Technology
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Strengths
Comments by the IV
Date
Name & Signature of the IV:
:
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Master of Business Administration
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International College of Business and Technology
Master of Business Administration
Contents
List of Figures ......................................................................................................................... 5
List of Tables .......................................................................................................................... 5
1. Executive Summary ......................................................................................................... 6
2. Company Background ..................................................................................................... 7
3. The product types and Present Market Portion............................................................ 7
3.1 Present Market Portion (Volume & Value) ........................................................... 9
4. Key Issues Related To Aqua Fresh Water Brand ....................................................... 10
5. Environmental Analysis ................................................................................................ 10
5.1 SWOT Analysis ...................................................................................................... 10
5.2 PESTEL Analysis ................................................................................................... 12
6. Competitor Analysis ...................................................................................................... 13
6.1 Porters Five Force Model ...................................................................................... 13
7. Marketing Objective ...................................................................................................... 14
8. Marketing Strategy Development................................................................................. 15
8.1 Segmentation .......................................................................................................... 15
8.2 Targeting................................................................................................................. 16
8.3 GE Matrix ............................................................................................................... 16
8.4 Positioning .............................................................................................................. 17
8.5 Proposed Marketing Strategy ............................................................................... 18
8.6 Ansoff growth strategy .......................................................................................... 19
8.7 Marketing Mix Strategy ........................................................................................ 20
9. Marketing Budget & Time line implementation for Aqua fresh ............................... 23
9.1 Action Plan for the Next Two Years..................................................................... 23
9.2 Marketing Budget for Aqua fresh for the next two years .................................. 24
9.3 Financial Statements forecast ............................................................................... 25
10. Identification of KPIs and proposed plan for performance management ............ 25
10.1 Instruments to Monitoring KPI's ........................................................................ 26
11. Conclusion .................................................................................................................. 27
12. Referencing ................................................................................................................. 28
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List of Figures
Figure 1 - The product and product types .................................................................................. 8
Figure 2 - Present Market Portion -2018 1st Quarter................................................................. 9
Figure 4 - GE Matrix................................................................................................................ 16
Figure 5 positioning of brand ................................................................................................... 18
Figure 6 - Ansof’s growth strategy .......................................................................................... 19
List of Tables
Table 1 - Present Market Portion -2018 1st Quarter .................................................................. 9
Table 2- Key Issues Relating to Aqua fresh Water .................................................................. 10
Table 3 - Marketing Objective ................................................................................................. 14
Table 4 - Market Segmentation................................................................................................ 16
Table 5: Marketing Budget for Aqua fresh for the next two years .......................................... 24
Table 6 : Financial Statements forecast ................................................................................... 25
Table 7 : Identification of KPIs and proposed plan for performance management ................ 25
Table 8 : Instruments to Monitoring KPI's .............................................................................. 26
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1. Executive Summary
The bottled water sector in Sri Lanka has become a speedily moving business. In Sri Lanka,
Aqua Fresh water is one of the leading branded bottled water available. This is a product of
Access natural water private Limited which operates under Access group of companies.
The persistence of this study is to develop a marketing plan to accomplish the goals of the
organization. Marketing competitiveness has been identified through marketing analysis,
market size and development, consumer behavior and competitiveness, pricing and
profitability to achieve the current state of the brand. Various tools used to find the market
position of micro and macro environments. Analyzes of the PESTEL environment have
recognized fluctuations in the macroeconomic environment and SWOT analyzes have
recognized fluctuations in the micro-environment.
The reason for this study was to build up a marketing plan to accomplish the organization's
objectives. In view of the aggressiveness of the brand, a market examination was directed.
Market estimate, showcase improvement, customer conduct and focused examination, costs
and advantages, comprehend the present condition of the brand. The macroeconomic
condition is controlled by PESTEL analysis and ecological small scale change, which are
dictated by SWOT analysis.
A strategic marketing plan has been developed for the next two years in line with the
company’s company established goals. The most suitable target market is selected by
developing a new marketing segment. The appropriate way of positioning the product has
been and a target market was selected accordingly. In line to the to the plan Aqua fresh will
focus on the differentiation strategy. This idea behind this is to introduce new markets while
infiltrating the current market. The most advanced cleaning process (advanced Japanese
technology) has taken the unique sales proposal to provide customers with clean water.
The marketing objective is set in view of revenue growth, gross margin increase, net profit
growth, and strengthened market share, enhancing the corporate client base width and
number of appropriation outlets. Under the promoting system, marketing mix is clarified and
can be utilized to accomplish an action plan, target showcasing spending plan for the
following two years. At long last, a KPI was proposed to accomplish showcase targets and
screen execution administration management plans
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2. Company Background
Access natural water (PVT) LTD was launched in the year 2000 when the access group
recognizes a requirement of pure bottles drinking water of good quality. The company makes
a range of bottled water from the brand name “Aqua fresh”. Aqua fresh water is sourced from
the unspoiled source which is in the fine springs somewhere down in the mountains of
Labugamkanda, a zone situated in one of Sri Lanka's geographically inimitable rain forests
with least human surroundings.
In June 2001, a special purification system, imitating the natural filtering process in water at
source and in natural purity was designed by Professor Hiran Cooray of University of
Peradeniya. This process ensures a complete assignment of automated bottling, pruning,
contraction and packaging to foreign standard. This also ensures the domestic quality
assurance and random pollution control which ensure that Sri Lanka produces safe and safe
bottled drinking water.
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200 ml
350 ml
500 ml
PET bottled range
Aquafresh
750 ml
Products
5 gallon PC bottle
1000 ML
1500 ML
500 ml
Alka fresh alkaline
water
5L
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Market share
American Premium Aqua Fresh Aquafina Speed Others
22%
5%
6% 55%
12%
Aquafina 47,730 6%
Speed 39,775 5%
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Lack of buyer Aqua fresh water brand isn’t the mainstream brand name
mindfulness for buyers as its principle rival. This did not come mostly
to promoting and specialized strategies, and the greater
part did not know about the brand
5. Environmental Analysis
Strengths
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Weakness
Lack of product types and ranges when compare to the principle competitors. (Difficult to
differentiate product)
No limited time exercises urged identified with item.
Bottled water isn't affordable to the greater part of the family units in Sri Lanka.
Consumers are not worried about brand name.
Opportunities
The trend in a more healthy life style in the public can be used to promote the bottled
water
Due to some concerns namely polluted water due to various reasons like mixing industrial
waste and oil, purified water may not be safe enough to consumption
Some parts of Sri Lanka is hit from kidney disease due to polluted water consumption
There is a tendency in most of the organizations providing filtered water to their staff
Most of the town built houses and apartments doesn’t have space for own wells so public
use the water provided by national water supply. Drinking water is used after boiling
Change in the life style
Packaging and differentiated in customized variants
Threats
Since bottled water industry is an emerging market and has close to 100 suppliers, the
industry is highly competitive
The market forerunner holds a significant portion and has conquered the market over a
long period of time. In addition to that, he captures big business in Sri Lanka.
Government guidelines on quality of water and relevant certifications
Government intervention on water purification projects due to groundwater contamination
Major players in the market pay huge amounts of money in advertising promotional
activities
Since people do not have a brand preference sales usually depend on the retailer
The inexpensive products appear on the market with the present market situation
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Political
New government has introduced projects to reduce water pollution in affected areas
Contracts made with foreign countries in water purification technology to introduce in the
country
Economical
Due to high competitive level in the industry even a small change in the price would affect
the sales
Changes in the rate of inflation will affect the water industry
Regular change in the fuel price will affect the transportation expenses
Particularly the labor cost of the fluctuating distribution network.
Social Culture
Healthy lifestyle.
The spread of kidney disease due to water pollution.
Tendency in living in apartments and town built houses make the need of drinking water
due to unavailability of wells.
Technological
Increasing bias for biodegradation technological progress of the water treatment process
Innovative and cutting-edge technologies that foreign companies use based on their
products.
Environmental
Eco friendly products.
Changes in weather and climate.
Threat of water pollution.
Legal
Pressure from government regulations like ISO and HACCP certificates.
Non-maintenance and the relevant legal quality impact on PH levels
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6. Competitor Analysis
Structures have to be situated to examine the entire level of the bottled water business and in
addition the improvement of business system. As we probably are aware the accompanying
model has been presented by Porter or the analysis of competitors. Below is a description of
how Porter’s five forces model can be created to bottled water business.
The limited bargaining powers of bottle manufacturers are obtained through few
suppliers in the market.
The cost of transportation will rise.
As per health ministry in Sri Lanka, there are around 100 supplies in the market, and
the pioneer of the opposition has been built up in the market for two decades.
The high market development rate, solid way of life, contamination of ground water,
and the spread of ceaseless kidney illness in the North Central Province are relied
upon to be high for a further three to four years.
There will be profits by conveyance by vast providers because of the extension of the
island.
The Pure-it water filtering method which is going to be a great threat which is already
introduced to the house hold market.
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The cost of shifting is low because the water discharge unit and the clean unit are not
remarkably priced.
7. Marketing Objective
A common practice for using widely used SMART mnemonic is to identify specific
marketing objectives to support the organization objectives. SMART is used to evaluate the
fitness for the purpose of running different strategies or for the full range of business
processes. For the next two years, following are marketing objectives going to implement by
Aqua Fresh for the next two years.
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To deliver the proper marketing programs to the target market opportunities by using set of
guidelines and police can define as marketing strategy.
As per the market analysis, an Aqua fresh water supplier has to move forward towards new
markets that have demonstrated the ability to expand and develop existing markets. To
accurately classify the areas that is suitable for products in the market, specifically to expand
the existing market. As further outlined, the targeting, targeting and positioning of strategic
planning.
8.1 Segmentation
Based on the internal and external analyzes performed, we must consider segmentation,
targeting and positioning in order to develop appropriate strategies to achieve the objectives.
Segmentation is determined by the interests of market leaders, current services, and industry
market opportunities. Currently, Aqua Fresh Water offers products to people of all ages on
lower, middle and upper floors. According to the developed market plan, the type of business,
the type of customer (business or housing), the type of industry, the geographical area, the
level of income, the scale of the industry (large / medium / small scale), water consumption.
Rresidencies in main HS M H
SEG 7
cities
Residence in Rural MS H M
SEG 8
areas
Table 4 - Market Segmentation
HS- High Scale
LS- Large Scale
MS- Medium Scale
H- High
M- Medium
8.2 Targeting
8.3 GE Matrix
Low SEG6
Figure 3 - GE Matrix
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Target showcase fragment has chosen in view of the section attraction and specialty unit
quality. Appropriately in the main year of the promoting plan it is prescribed to center around
the Large Scale Co-work workplaces situated in urban zones division because of the catching
of high utilization organizations. Since there is enormous increment in tourism industry
organization need to target tourism inns situated in urban and country territories. Likewise
organization can target Health mind focuses and Private Hospitals in urban regions.
Market must be captured through the offer of reduced costs with the ensured for water virtue.
In spite of the above expansive scale high utilization division additionally ought to be caught
through offer of reduced costs. In the publicizing effort it is crucial advance strong
considerations in the clients mind, for example, culminate virtue ensured with best
purification innovation. Corporate customer serving has taken for the essential serving
division on account of the degree of the market, low corporate customer width, industry
request and business quality etc.
Likewise it is important to pay attention on the private clients in the rural as well as the main
city zones in point of the salary/income level of the general population. The crucial purpose
behind the choice of districts of the north pivotal region is because of the immaculateness of
the water isn't great in these regions due to water is spoiled because of mechanical waste and
water contains arsenic due utilization of pesticides and bug sprays by the ranchers.
Progression practices proposed to use in second year is outfit the thing with negligible
exertion, visit residencies through, give water controls at complimentary or at decreased rate
and lead CSR practices in the zones of north central and north districts.
8.4 Positioning
As per Dr. Philip Kotler’s positioning of a market definition, the act on the design of the offer
and the image of the company to occupy a distinct place in the spirit of the target market. The
objective of positioning is to put the brand in tthe minds of stakeholders, especially customers
and prospects
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Quality of the product (idealize virtue ensured with superior Japanese Purification
innovation)
High Availability
Aqua Fresh
Aqua Fresh
Low Availability
Depending on the circumstances, Aqua fresh water is a high quality product, but not very
attentive and not very accessible. According to the above table, the element must be
positioned as a quality element with higher accessibility and improved vigilance throughout
the next two years. The vigilance of the Aqua brand of fresh water is low due to high number
of competitors in the market. Advertising blending procedures can be used as a method of
expressing this positioning way in the consumer.
There is a massive growing interest in filtered water industry in Sri Lanka. Regardless, the
availability of the item is low and this creates a delay for the request and furthermore offers
the contenders to send their position. In this way, Aqua Fresh Water will make more market
penetration and will be presented in new markets, as shown by Ansoff's growth strategy. To
anchor new markets and, what's more, increment the watchfulness levels of current markets,
progress and promotion will be completed.
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Product Development
Instead of bottled water production, introduce new bottled production contains natural
mineral water (minerals).
Attract customers by changing packaging
Market Development
Increasing number of outlets.
Use customized packing and customized labeling
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Diversification
Diversification won't be focused as a strategy
Product
Aqua fresh water is an exclusive scope of filtered water produced using normal spring
water. As of now this comes in 8 different sizes of plastic bottles and water
dispensers.Amid the principal year, Access natural water (PVT) LTD can present new
mineral water (containing minerals) into the other filtered water extends. At present,
just two organizations supply this sort of mineral water. This will help make a special
and separated an incentive for the rising water brand. In the next year the company
can introduce a new packaging and custom packaging with a custom label for a plastic
bottle of different sizes. This will help target new markets and S2 (hotels located in
urban and rural areas) according to the GE matrix.
Price
Right now, water costs in Aqua fresh are moderately low contrasted with costs
charged by the principle contenders. To meet buyer desires, Aqua fresh water has kept
up clear and basic estimating approaches. Aside from this, since the target market is a
cost delicate organization, keep the cost of entrance and the objective of this
evaluating strategy is amplifying income, expand benefit over the long haul by
expanding your market share of the overall industry and the combined amount and the
business rebates. It recently increased its rates to a base as a component of its focused
and sensible valuing strategy, as the greater part of its different rivals additionally sold
their products in this price range.
Place
According to the Ansoff matrix, Aqua fresh is not going to undertake any change in
its current market. Accessibility of this product is expected to grow in this current
market. Aqua fresh products cover close to 10,000 outlets all across the country, The
main explanation for determining the regions of the North Focal Area is that the
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immaculate water is not great in these areas because the groundwater is contaminated
because of compacted waste, modern waste and water containing arsenic and bug
spraying by agriculturalists.
Promotions
At the point when contrasted and the other brand of filtered water, the Aqua fresh
water brand isn't the most mainstream filtered water brand among buyers. This is for
the most part because of the way that promoting and specialized strategies did not
achieve the customer and that the dominant part did not think about the brand.
Television advertisements
Using the accessible openings for wellbeing programs gauge particular significant ads
to address both more youthful socioeconomics and medical advantages of target
buyers.
By selecting a favorite term and logo for displaying popular programs, cricket
matches, tele dramas and so on
Radio advertisements
Advertise in widely held radio stations. to promote the product
Web advertisement
Using online networking (Facebook, Instagram, Twitter and snap graph) as special
media
Create web commercial in mainstream locales
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Bill boards
Bill boards to make Product mindfulness which will be put at areas in the town
territories
Personal Selling
Provide water containers for free of charge.
Promotion focuses for deals agents’ commissions.
Visit corporate customers and pass on the purposes of enthusiasm of the product
Community relation
Organize or support sports events, for example, rugby matches marathon and cricket
competitions.
Sponsorships giveaways for social events
CSR Activities
CSR Activities to be organized where well water is most polluted
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2019 2020
Actions Q- 01 Q- 02 Q -03 Q -04 Q- 01 Q- 02 Q -03 Q -04
Product Development
Promotional strategy
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9.2 Marketing Budget for Aqua fresh for the next two years
Paper Articles
800,000 1,000,000
Billboards 2,000,000 1,750,000
Facebook page 400,000 500,000
Table 5: Marketing Budget for Aqua fresh for the next two years
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2019 2020
Revenue 3,531,246,000 4,812,200,900
Sales cost (1,899,114,200) (2,212,802,630)
Gross profit 1,632,743,270 2,599,398,270
Administration cost (211,350,948) (213,703,938)
Selling and Distribution Cost (111,592,597) (140,340,150)
Finance charges (31,312,875) (32,997,155)
Net operating profit before tax 1,274,846,850 2,212,357,027
Tax (95,298,475) (116,035,945)
KPIs are basic to measure the achievement of the association while accomplishing the
objectives. It will screen the progression of the association's goals and objectives.it can be
influenced month to month quarterly to and can make the medicinal move to the thrashing
from the deviation.
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Observing
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11.Conclusion
The bottled water industry in Sri Lanka is a rapidly changing industry. Aqua Fresh Water is
one of the leading water bottles in Sri Lanka.
The Marketing Plan addresses key issues identified in the marketing audit. This marketing
plan includes micro analytics through PESTLE, and SWOT analysis identifies the strength
and opportunities of the company. STP processes can identify potential locations, target
groups and positioning strategies that the company can reach the customer.
The marketing plan addresses the main issues identified during the marketing audit. This
marketing plan integrates macroeconomic analysis via PESTLE, and SWOT analysis
identifies the strengths and opportunities of the company. Marketing analysis: suggested
business preparation to solve identified problems. Through the STP process, a company can
identify areas in which they can reach the brand, target groups, and positioning strategies.
The marketing mix strategy was designed to meet the business objectives of identifying
inventory identified through standard credit. Then follow the action plan and budget of the
KPI plan.
By implementing the proposed plan for Aqua Fresh Water, the company will be able to
achieve the targeted goals and maximize the profit of the company.
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12.Referencing
Aqua Fresh water | Aqua Fresh water. 2017. Aqua Fresh water | Aqua Fresh water. Available
at: http://aquafresh.lk/.
Bottled spring water supplier in Sri Lanka, Aqua Fresh water. 2017. Bottled spring water
supplier in Sri Lanka, Aqua Fresh water. Available at: http://aquafresh.lk
Kotler P., Keller K. (2006) Marketing Management (12th Ed).
McDonald, M. (2007) Marketing plans: How to prepare them, How to use them, 6th edition.
Porter, Michael, “What is strategy?” Harvard Business Review v74, n6, (Nov-Dec, 1996):61
(18 Pages)
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