AgendaAn introduction to Zap WatersThe Strategy Vision and MissionOur goals?Setting X2O apartAn internal and external analysisX20- the productThe marketing mixThe financial sideStructuring the marketing unitImplementationEvaluation and control
ZAP WaterHistory• Founded in 2007Product line• Prior products• X2OCorporate Social Responsibility• Product health effectsCompetitive compensation packages• Profit sharing incentives
Vision To be the most healthiest andappealing beverage provider in the country.
MissionX2O will transform the natural drinks industry through the provision of a healthy andirresistible beverage that will appeal to the coffee lovers as much as to those seekingnatural drinks and this too at an affordable price.
Non Financial Financial Goals Goals Provide highest-quality Launch product and sell 100,000beverage at competitive price units the first year of production Increase sales by 15% each year Promote social responsibility for 5 yearsCreate and maintain plant that Implement advertising minimizes negative campaign to enhance environmental impact consumer awareness Promote socially responsible Maintain a wage 20% higher image to college students than competitors In the second year of operation, commence advertising beyond Enter two new markets every the college market and add two years working adults to the target Achieve national distribution in market. Grow steady market share tothree general store chains within 13% over five years five years
Setting X20 ApartCore Competency and SCA Manufactured, marketed at competitive cost Unique taste Provides important vitamins and minerals Extra boost of caffeine for coffee lovers
StrengthsOffering• Ideal for target market WeaknessesDistribution Offering• Accessible to academic • Crowded drinks market and &corporate sector some caffeinated beverages exist alreadyPersonnel Distribution• Highly motivated • Must convince stores to give shelf spaceFinance Personnel• Capital provided by SMEDA • Workforce Production work can be monotonous Finance • As SMEDA are only providing initial start up funds
Industry Analysis Two lines Initial Production Each devoted solely to 500 ml bottles Add a third and fourth line to accommodate 20oz &1.5 liter bottles Anticipate need for 3rd &4th lines within 12Demand Increase 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.
Product Objectives 140000 120000 100000Units Sold 80000 Year 1 Year 2 60000 Year 3 40000 Year 4 20000 Year 5 0 500 ml 1.5 liter Unit Type
Points of Difference and Positioning Water X20 Health Vitamins Minerals two in one Fluoride at the cost of 1CaffeineSatisfaction
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 100Promotion•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 RoadPlace•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
Sales and Sales Commission 8000000Sales commissions 6000000 will be based on Rs 4000000 Sales 5% of sales 2000000 Comissions 0 Year 1 Year 2 Year Gross and Net ProfitOur anticipated 1500000 capital 1000000 Rs requirements 500000 Gross Profittotal Rs 500,000 Net Profit 0 Year 1 Year 2 Year