SlideShare a Scribd company logo
1 of 47
INTRODUCTION TO MARKETING BUSINESS PLAN 1
INTRODUCTION TO MARKETING BUSINESS PLAN
Natural Spring Granite Filtered Bottled Water Company
Stacey Ogle
Principles of Marketing | MKT230 A01| December 17, 2014
INTRODUCTION TO MARKETING BUSINESS PLAN 2
Table of Contents Page #
Executive Summary 2
The Environment Part 1 3
Marketing Research and Targeting Part 2 9
Product & Pricing Part 3 19
Place & Promotion Part 4 29
Personal Selling & Global Markets Part 5 35
_____________________________________________________________________________
Executive Summary
The purpose of this report is to evaluate Natural Spring Granite Filtered Bottle Water
industry and comprehend out we can develop strategic intent for their business with the internal
and external environments. The analysis of the management process will achieve
competitiveness and earn better than average returns on investments.
It will also identify the target market opportunities with in the US and with global
markets along with the threats in those markets that we will overcome by using this plan analysis
like SWOT, Marketing Mix, and Product Life Cycles etc.
By the end of this report, our future strategy will be mentioned as well as all
recommendations about Natural Spring Granite Filtered Spring Water plan into strategic
orientation in order to perform better in all business worlds.
INTRODUCTION TO MARKETING BUSINESS PLAN 3
Introduction to Marketing Plan: Natural Spring Granite Filtered Spring Water Bottled Company.
The Environment
Marketing, more than any other business function, deals with customers. Although we
will soon explore more-detailed definitions of marketing, perhaps the simplest definition is this
one: Marketing is managing profitable customer relationships. The twofold goal of marketing is
to attract new customers by promising superior value and to keep and grow current customers by
delivering satisfaction. Armstrong, G. & Kotler, P. (2009)
Water is a necessity to survive for all of humankind. Water that is from a source that is
untreated, for example, bore wells, rivers etc. is not safe for anyone to drink. Water with
impurities can cause you to get sick or disease. Therefore, water is purified and bottled for
humankind to drink. This bottled water is used every ware you look like offices, schools,
restaurants, railway stations, airport, bus stations, hospitals, homes, etc. Kumar, N. (2004-06).
Just about every ware you go has some kind of water vending machine available to purchase a
bottled water.
Marketing Mix
Product
North Americans have recently begun to drink bottled water, but already the distinction
between spring water, mineral water, and filtered tap water is blurred beyond redemption.
Kumar, N. (2004-06). Spring water must come from a natural spring with proven purity of
contaminants; mineral water must contain 2000 parts per million in minerals and filtered tap
water means just that. Kumar, N. (2004-06).
INTRODUCTION TO MARKETING BUSINESS PLAN 4
We will offer an assortment of options for purchase to the consumer. The most recent
added is the six pack of 5-ounce children size waters that all have the spill proof caps. We will
also offer the 12 oz. or the 1-liter, which can come in the individual or the case of 12 or 24. Do
not forget about the 3 gallon and 5 gallon refill containers that you can fill up at a number of our
refilling stations.
Place
Since we brought Pepsi into our plan we will be using and implementing their facility to
transport the bottled water. We will also purchase a big factory in NH where we are currently
located. To get the water bottled and boxed up for transport.
Price
Price is going to be for the middle class family or single parent homes that want the great
test and healthy spring mineral water for their family without the real expensive price.
According to the Beverage Marketing Corporation (BMC), the average wholesale price per
gallon of domestic non-sparkling bottled water was $1.13 in 2012. From popular retail food
product, bottled water is available at many differing price points. International Water Bottled
Association. (IBWA). (2014).
BMC also notes that research shows consumers most often tend to buy bottled water in
bulk from supermarkets or large discount retailers as they often prefer to purchase bottled water
in cost-saving volume. International Water Bottled Association, (IBWA) (2014).
Where did consumers buy bottled water?
 45% Mass Merchandisers, club stores, dollar stores, online (where the price for gallon is
generally much lower).
 28.5% Grocery stores.
INTRODUCTION TO MARKETING BUSINESS PLAN 5
 5.7 % Convenience Stores (where the price per gallon is likely to be higher)
 3.5% Drug Stores.
 NOTE: The remaining 17% is accounted for through vending, food service, and other
sales. International Water Bottled Association. (IBWA). (2014).
Promotion
With every purchase of the a case of 12oz bottles we can promote or coupon a promotion
to get a free 5oz six pack of the spill proof caps to market these for parents with small children
on the go. We can also offer one time free water container with cap on first purchase of the
bottled 3 and 5-gallon refillable containers if purchased more than three of any combination of
sizes.
For the Social Media promotion, we can have a promo code for the same promotions
offered in the stores and add additional promotion codes for discounts on products and or free
shipping of products with certain purchases.
The social media ads and television ads are going to be specific towards the quality of our
brand. It will be all about the natural spring water is pure and really comes from the NH springs.
Informing consumers that we are our own company and our core standards are to give the best
prices for the healthiest water on the market.
Marketing Environment
Key success factors: Water is the world’s most attractive beverage category. Demand is
increasing day by day in the bottle water industry. The impact of brand is important because of
notoriety. People are always more interested in Health and Fitness. Water improved the
appearance of skin, gives more energy and water is important for health. De Melo J. (2012,
November 20).
INTRODUCTION TO MARKETING BUSINESS PLAN 6
The retail sale of bottled water accounts for about 88% of the bottled water market, and is
the largest and fastest growing segment of the United States bottled water industry. Consumers
generally purchase bottled water in convenient 2 ½ gallon, 1 gallon and smaller sizes – including
familiar 16.9 ounce half liter bottles through grocery, club convenience stores and supermarkets
and vending machines. International Water Bottled Association. (IBWA). (2014)
The home and office delivery portion of bottled water industry accounts for 12% of the bottled
water markets. These services involve delivery of three, four, and five-gallon bottles used with
water coolers. The segment of the bottled water market has been providing customer s with the
safe, quality products for over one-hundred years in the US.
Marketing and its relationship with other functional areas of business
The vast majority of companies that are in the bottled water markets are small, locally-
owned companies, with 60% reporting less than 2 million in annual gross sales and 90%
reporting less than 10 million in annual gross sales. These are local family entrepreneurs with
deep roots and strong ties with in the communities. International Water Bottled Association.
(IBWA). (2014).
BMC also notes that research shows consumers most often tend to buy bottled water in
bulk from supermarkets or large discount retailers as they often prefer to purchase bottled water
in cost-saving volume. International Water Bottled Association. (IBWA). (2014). BMC also
notes that research shows consumers most often tend to buy bottled water in bulk from
supermarkets or large discount retailers as they often prefer to purchase bottled water in cost-
saving volume. International Water Bottled Association. (IBWA). (2014).
INTRODUCTION TO MARKETING BUSINESS PLAN 7
Strategic Marketing
Planning Process
Since 2001, Americans have increased their annual per capita consumption of bottled
water by more than 12 gallons. The continued increase per capita consumption indicates that
customers see bottled water as a healthy alternative to other packaged beverages. Consistent with
this view, sales revenues for the U.S. bottled water market in 2013 were 12.3 billion in wholesale
dollars, a 4.0% increase over the previous year. International Water Bottled Association (IBWA).
(2014).
Differentiation based price based marketing strategy a business that opted for the price
route in its competitive battle with enjoy certain flexibilities in matter of its product and used as
main competitive level. We will price products to suit the varying competitive demands and it
will enjoy cost advantages, which permits it to resort a price based fight. Kumar, N. (2004-06). If
the marketer understands consumer needs; develops products and services that provide superior
customer value; and prices, distributes, and promotes them effectively, these products will sell
easily. Armstrong, G. & Kotler, P. (2009)
Today for any business organization to be successful, it has to provide its customer with
the differentiated product that is a value buy for them. In order to cater to the changing needs of
the customer the business has to continuously come out with the variants of the products so that
it can target the maximum segments.
Since 2001, Americans have increased their annual per capita consumption of bottled water
by more than 12 gallons. The continued increase per capita consumption indicates that customers
see bottled water as a healthy alternative to other packaged beverages. Consistent with this view,
INTRODUCTION TO MARKETING BUSINESS PLAN 8
sales revenues for the U.S. bottled water market in 2013 were 12.3 billion in wholesale dollars, a
4.0% increase over the previous year. International Water Bottled Association (IBWA). (2014).
Strategy
Organizational Levels
Natural Springs Granite Filtered Bottled Water Company is dedicated to long-term bottle
water markets. It will not accept short-term financial gains, as long term is the ultimate goal. We
want to be around for hundreds of years as a well-known company that stands behind the
company and its product. To do so we have to think of long term goals only.
We have a companywide marketing meeting once a month with all department heads to
confirm that all departments are doing their part to assist with the marketing strategies set forth
for the future advertising campaigns. The departments heads will relay information to the rest of
their departments and ensure they are all informed as well. We have a suggestion box for
anybody that has any marketing ideas or strategies they want to share with the marketing team
and every suggestion will be thoroughly reviewed and response giving to the person that
submitted the idea. Higher management, for approval before implemented in the marketing or
advertising campaign, will review everything done at the meeting.
Goals and Objectives
Natural Spring Granite Filtered Bottled Water Company will sub-contracting out a share
of the profits of the business to distributer, for return on using their distribution, process. They
get a quarter of the profits in the event that our overhead was meat first. Of course, the third
party company will have no rights to the actual making of our product and whom we chose as a
retailer to sell it.
INTRODUCTION TO MARKETING BUSINESS PLAN 9
We will start with just NH for now but plan on expanding too many more states with in
the first year. If the company is taking off and sales are up with company making money then we
will expand to the rest of the United States within 5 years and move to international sales within
10 years.
Planning Gap
Ethics in Marketing
Natural Spring Granite Filtered Bottled Water Company is actively adding value to our
organization and customers. We will adhere to all applicable laws and regulations and
embodying high ethical standards in our choices. We will properly advertise all products for their
intended and promoted uses. We will embrace, communicate, and practice the fundamental
ethical values that will improve consumer confidence and comply with all government
regulations and environmentally safe standards. These basic values are intentionally aspirational
and include honesty, responsibility, fairness, and respect.
Market Research & Targeting
Market Research
Research Methods & Data Mining
One research method used is the online survey, see the survey attached separately.
Another research method would be data mining. Data mining would be investigating past sales
of the company to see about markets in the past that the company might have sold too like
military, medical facilities, and schools, etc.
Marketing Research Process
INTRODUCTION TO MARKETING BUSINESS PLAN 10
Problem: The vast majority of bottled water companies in the U.S. are small community
based companies using local water sources to distribute their products with in an average radius
of 300 miles from their bottling facilities. International Water Bottled Association (IBWA).
(2014).
Opportunity: Be the first company to offer bottled water through out many east coast
states and move on the whole United States in the near future. Using a third party distributor for
25% of profits after overhead is meet will gain the access to the trucks and facilities needed to
gain more territory. Since the third party distributor has steak in the wellbeing of the company
that will ensure they keep up the standards and practices equal to the Natural Spring Bottle Water
Companies are.
Objectives: We are going to put out a survey that will ask about out buy three get 1 fee
of our 24 bottle case of 20 oz. bottled water For the price of only 9.99. This will allow us to do
the research needed to see if sales went up because of the coupon and what age, gender, number
of people in household or family.
Budget: We will used 10 percent in our promotional grand opening for advertisements
on TV commercials and online pop up ads. Some will also go to the on line survey being
conducted to get more research on how our promotions are doing after the fact. After the initial
budget of 10 percent, it will go down to the standard 3 percent of total budget on advertising.
Time Table: We are going to put our discounts online and coupons out in ads just after
Christmas. This is when people are making New Year’s resolutions to lose weight and get
healthy again after the holidays. Water is a big part of that type of heathy lifestyle that people
will be back in the mood for come the first of the New Year.
INTRODUCTION TO MARKETING BUSINESS PLAN 11
Primary Research: See attachment of example of Survey. Secondary Research: Sales of
bottled water grew nearly 7 percent between 2011 and 2012, with consumption reaching a
staggering 30.8 gallons per person. Gleick P. (2013, April 25).
Gleick, P. (2013, April 25)
In addition, we have the market of the Home Delivery Cooler Refill side of the business to
keep going in our local market but to also expand our great tasting spring water to even more
communities. We are going to expand that coverage to more big cities and these first two
expansion cities are going to be metropolitan areas that have our billboard advertisement just
before entering the city. Design Research Instruments: You can see that my survey does follow
the guidelines set by the Argosy classroom test This information is from the Argosy Online
Marketing Principles M2 A2 (n.d.).
 Keep it brief and simple
 Provide instructions for answering questions.
INTRODUCTION TO MARKETING BUSINESS PLAN 12
 Graphics are pleasing and easy to read.
 Close Ended Questions – Used multiple choice.
 Open Ended Questions – Asked to leave a brief comment in own words.
Collecting Data
US Census Bureau. (2014, August)
Beverage Industry Magazine. (2014, July).
2.6
3.4 3.6
5.1
5.7
6.1
6.8
6.5 6.4 6.4
5.4
0
1
2
3
4
5
6
7
8
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
U.S.BillionDollars
Year of Product Shipment Values of Bottle Water
U.S. productshipmentvalue of bottled water
1.9
0.92 0.9 0.86
0.58 0.6
0.53
0.41
0.32
0.25
0
0.2
0.4
0.6
0.8
1
1.2
1.4
1.6
1.8
2
Private
Lable
Dasani Nestle
Water
Pure Life
Aquafina Poland
Spring
Glaceau
Smart
Water
Glaceau
Vitamin
Water
Dear Park Ozarka Fiji
U.S.BillionDollars
Name of top 10 companies 2014
Leading bottled still water brand sales in the U.S., 2014
INTRODUCTION TO MARKETING BUSINESS PLAN 13
Beverage Industry Magazine. (2014, January).
Organize and Analyze Data information was also retrieved from the Argosy Online Marketing
Principles M2 A2 (n.d.).
 Sift for data relevant to your immediate market needs.
 Use subjective information only to support the general findings of objective
information.
 Check for consistency of data. For example, do the customer demographics provided
by the local city office agree with your survey results?
 Quantify results by grouping all similar responses.
 Try combining data from different sources to obtain additional information that may
be of use now or later.
 Present and Apply Marketing Research Findings.
With all of the research done on the bottled water industry, Natural Spring Bottled Water
Company will merchandise some mass merchandiser or club stores, for example, Costco and
45.30%
28.50%
5.70%
3.50%
17%
Mass Merchandisers / Club Stores
Grocery Stores
Convenience Stores
Drug Stores
Vending/Food Service/Other Sales
0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 35.00% 40.00% 45.00% 50.00%
DisterbutionChannels
Percent of Sales
Shareof bottled water sales in United States in 2012 by
distribution channel.
INTRODUCTION TO MARKETING BUSINESS PLAN 14
Wall Mart. In Addition, to satisfy the needs to get product out to the major grocery’s stores, for
example, Safeway, Savemart, and Pack-n-Save would be a few to mention. Since these are the
top selling markets per research, we start out with these two distribution channels for our retail
side.
To get the Natural Spring Bottled Water name into the home of the consumers we are
going to have our product launch just after Christmas with the design of our company logo on
each bottle sold to create the initial brand awareness you need. We have a marketing campaign
on mass media for example TV, Online, and even some Internet surfers that we hired to get our
name in the social media. We have also purchased some advertisements next to the casino
billboards to ensure that all people that are driving to the casino will also see our product launch.
The last this would be to pass out business cards. Word of mouth is always a big source of
advertising.
The home and office delivery portion of the bottled water industry accounts for about
12% of the bottled water market. These services involve delivery of three to four five-gallon
bottles used with water coolers. This segment of the bottled water market has been providing
consumers with safe quality products for over one hundred years in the U.S. Bottled Water
Industry: Home and Office Delivery (n.d.).
Consumer Behavior
B2C vs. B2B
Consumer purchases are influenced strongly by culture, personal and psychological
characteristics according to Armstrong, G., & Kotler, P. in 2009 when they wrote the Ninth
Edition Marketing, An Introduction.
INTRODUCTION TO MARKETING BUSINESS PLAN 15
For culture, marketers need to spot cultural Shifts in order to discover new
products that might be wanted. Under culture, we have Subcultures or groups of
people that shared value systems based on common life experiences and
saturations. Subcultures also include nationalities, religions, racial groups, and
geographic regions. National Spring Bottled Water Company will try to pick one
of these categories to assign to part of the marketing team to target that specific
type of customer to sell our water. Last, we have social class, which is measured
by a combination of occupation, income, education, wealth, and other variables.
In addition, Armstrong, G., & Kotler, P. (2009) had this to say about the business buyer’s
side of behavior.
Business Buyers usually face more complex buying decisions that do
consumer buyers. Purchased often involve large sums of money, complex
technical and economic considerations, and interactions among many people at
many Levels of the buyer’s organization. The business buyers need more time to
make decisions. The process also tends to be more formalized then the consumer
buying process. Large business purchases usually call for detailed product
specifications, written purchase orders, and carful supplier searches and formal
approval.
Consumer Decision Making Process
“The key objectives are to get customers to buy your product and then retain your
customers. At the planning stage, organizations usually divide their product offer into several
small manageable chunks”. Armstrong, G., & Kotler, P. in (2009).
INTRODUCTION TO MARKETING BUSINESS PLAN 16
“When identifying a set of possibilities to satisfy the need, the customer evaluates each
option according to specific criteria and the evaluation criteria may consist of price, ease of
availability, or relative benefits of certain choices”. Armstrong, G., & Kotler, P. in (2009).
The final purchase usually involves the customer interacting with an array
of influencing factors. Post purchase, the customer forms opinions about the
product, opinions that influence future purchase decisions. As a result, making a
simple purchase decision involves complex iterative processes, a host of
influencing factors, and several decision criteria. Armstrong, G., & Kotler, P. in
(2009).
Factors Affecting B2C and B2B Consumer Behavior
Understanding customer behavior involves studying how an individual interacts with the
marketing mix and the 4Ps of price, place, promotion, and product. Argosy University
Classroom. Principles of Marketing (n.d.). The evaluation criteria may consist of price, ease of
availability, or relative benefits of certain choices. Argosy University Classroom. Principles of
Marketing (n.d.). Each customer's consideration for an offer is influenced by factors such as
culture, attitude, previous learning, and personal perception. Using these factors, the customer
decides to buy or not, what brand to buy and where to buy that brand from”. Argosy University
Classroom. Principles of Marketing (n.d.).
An organizations buy activity consists of two parts. First, the buying center that is made
up of all the people involved in the buying decision, and the buying decision process. The buying
center and the buying decision process are influenced by internal organizational, interpersonal,
and individual factors as well as by external environmental factors. Armstrong, G., & Kotler, P.
in (2009).
INTRODUCTION TO MARKETING BUSINESS PLAN 17
Environmental factors are level of primary demand, economic outlook, and the cost of
money. In addition, shortage of key material, many companies now are more willing to buy and
hold larger inventories of scarce materials to ensure adequate supply. Organizational Factors
would be the buying organizations own regulations, objectives, policies, etc. The marketer must
understand the buyer limitations and who they are and how many of them would be involved in
the buying decision. Armstrong, G., & Kotler, P. in (2009).
Interpersonal factors are how the buying decision group of people influences each other
and how the process makes influences these people individually and as a group. Each participant
in the business buying decision process brings in personal motives, perception, and preferences”.
Armstrong, G., & Kotler, P. (2009).
Market Segmentation
Market Segmentation Concepts
Market Segmentation involves dividing a market into smaller groups of buyers with
distinct needs, characteristics, or behaviors that might require separate marketing strategies or
mixes. Armstrong, G., & Kotler, P. (2009).
For the Natural Spring Bottled Water Company, we have chosen to segment markets
based on Family Life Cycle. We are going to market to the family that has young children with
the spill proof tops that can make it easy to give a child a water without spilling in the car even if
they drop it. This will also include a marketing to the Young mother that might be still trying to
get over having the baby with in the past five or so years advertising the value of water in
person’s body and how good our Natural Spring Water tastes compared to the filtered bottle
waters on the market. The man that works manual labor in construction all day needs to keep
rehydrated while working would never go to the job site without his daily consumptions of
INTRODUCTION TO MARKETING BUSINESS PLAN 18
natural spring water to quench his thirst and natural minerals the body loses while sweating out
the day. This family does not have to be any certain age group just with younger children so we
will not be leaving any one out age wise. The kids will like the spill proof tops as much as the
parents do and the husband will buy because his wife will put in lunches until he is use to
making sure he gets the correct brand if he goes to the store.
Segmentation Process
Markets consist of buyers, and buyers differ in one or more ways. They may differ in
their wants, resources, locations, buying attitudes, and buying practices. Through market
segmentation, companies divide large, heterogeneous markets into smaller segments that can be
reached more efficiently and effectively with products and services that match their unique
needs. Armstrong, G., & Kotler, P. (2009).
For the Natural Spring Bottled Water Company, we have chosen to segment markets
based on Family Life Cycle. This would be a family that has young children. We can break down
that market to targeting to three branches, which is the Mother, Kids, and Father or parents
together. This family does not have to be any certain age group just with younger children so we
will not be leaving any one out age wise. The kids will like the spill proof tops as much as the
parents do and the husband will buy because of the replenishment of the bodies need for
hydration.
Segmentation Strategies
The four major segmentation variables for consumer markets are geographic,
demographic, psychographics, and behavioral. Demographic has to do with the world regions,
which would not apply to this business plan because it will only be in U.S. markets for now.
Demographic would include, age, gender, family size and family life cycle, Income, occupation,
INTRODUCTION TO MARKETING BUSINESS PLAN 19
religion, education, race, generation and nationality. Psychographics is social class, lifestyle, and
personality. Last, the Behavioral consists of occasions, benefits, user status, user rates, loyalty
status, readiness stage, attitude toward product. Armstrong, G., & Kotler, P. (2009).
Target Marketing
Target marketing consists of evaluating each market segment’s attractiveness and
selecting one or more market segments to enter. Armstrong, G., & Kotler, P. (2009).
The Natural Spring Granite Filtered Bottled Water Company is will be targeting females
(mostly Caucasian) between the ages of 26 to 46 of age with children. There are over 100 million
women strong in America and they are well in tuned with maintaining their family health and
wellness. They are well-educated, professional career minded and have significate purchasing
power since they make an average of 60,000 a year. They are environmentally friendly and have
established traditional routines centered on home and family. These women have a strong sense
of responsibility with in the community but will take advantage of opportunities for personal
growth.
Advertising the value of water in person’s body and how good our Natural Spring Granite
Filtered Spring Water tastes compared to the filtered bottle waters on the market. Our discounts
and promotions will appeal to the cost side of our water with middle class families. Do not forget
to market are ecofriendly bottles that we use for our water. We are an eco-friendly company and
everyone can appreciate that to stand behind out product and our environment.
The Product
Product Levels
Researching product levels, Kotler has updated the three level model to a five level
model that will be used for this business plan so we have the most current information available
INTRODUCTION TO MARKETING BUSINESS PLAN 20
to market our natural spring water. The five product levels are, core benefit, basic product,
expected product, augmented product, and the potential product. Raab, M. (2010, November 13).
Core Benefit - “The most basic level is the core customer value, which addresses the
question: What is the buyer really buying? When designing products, marketers must first define
the core, problem-solving benefits or services that consumers seek.” Armstrong, G., & Kotler, P.
(2011).
Naturally-mineral rich crystal clear granite filtered spring water is sourced from natural springs
that were made by nature and the water comes from a 40-feet-think to 90-feet-thick clay and
granite layers deep below the ground, protecting it from any man-made pollution. Natural
Springs granite filtered spring water contains no nitrates; it is naturally free of chemicals. Nicolet
Water Quality: Fresh From The Forest. (2014).
After water is collected at the springs in NH, it undergoes stringent controls to ensure each drop
has been screened for 30x more contaminants than the leading pitcher filter removes. Our testing
standards exceed the standards set by the EPA and the FDA. Poland Spring® 100% Natural
Spring Water (n.d.).
We seal every drop of our natural mineral-rich crystal clear granite filtered spring water in
specially designed bottles that are recyclable, regularly tested for safety, and free of BPA*
(bisphenol-A) Poland Spring® 100% Natural Spring Water. (n.d.).
Basic product – The Marketer has to turn the core benefit to into the basic product.
Raab, M. (2010, November 13). The basic product that might satisfy the inner needs of the
consumer. On this stage, the product only contains those values that are very necessary for it to
function. Koszegi-Nagy, Z. (2014, March 31).
INTRODUCTION TO MARKETING BUSINESS PLAN 21
Water is a necessity for every human being to survive. Water helps the body function properly
by removing waist products, maintaining physical endurance in adults and transports nutrients to
cells. Water is a major component of blood. Water also keeps the body at the correct
temperature.
Expected product – the properties that the product has and that are necessary for the
consumer to think about buying the product. Koszegi-Nagy, Z. (2014, March 31). On average,
calories in beverages make up 20% of the total caloric intake in the typical American diet.
Replacing one sugared beverage per day with water for a year can trim more than 50,000 calories
annually from your diet. Drinking water is a good way to stay hydrated without consuming
calories. Beverage Consumption & Sales. (n.d.). The 5oz Spill proof caps will targeted towards
the parents whether a family or single parent home. This option appeals to the parents because
water is a healthy alternative to the sugary juices and sodas for the whole family.
Potential product – it is the final product that is available on the market and that the
consumers can buy. This includes all the additional values and augmentations that the company
finally included in the product to differentiate it from the competitors’ products. Koszegi-Nagy,
Z. (2014, March 31).
Natural Spring Granite Filtered Water Bottle Company will offer an assortment of
options for purchase to the consumer. The most recent added is the six pack of 5-ounce children
size waters that all have the spill proof caps. We will also offer the 12 oz. or the 1-liter bottle
with the option of the sport top for adults that can be sold in singles or the cases of 12 and 24. Do
not forget about the 3-gallon and 5 gallon Home Delivery or order for the Home Delivery for
water cooler.
INTRODUCTION TO MARKETING BUSINESS PLAN 22
Augmented product – Attributes of the product that can differentiate it from the
competitors’ products and might provide a slight advantage over them for the consumers. These
may include the brand name, the design, the packaging, the overall quality, the additional
functions (apart from the basic features), the installation, the after-sale service, the warranty, the
home delivery, and the possibility to accept credit from the consumers. Koszegi-Nagy, Z. (2014,
March 31).
Our Brands – Natural Spring Bottled Water Co. is a top performer and our significant
investments in our people, facilities, and technology have enabled high-speed manufacturing
practices, high-quality products and a low-cost distribution system. Beverage Consumption &
Sales. (n.d.).
Recycle - We are committed to recycling in our own operations. We are taking steps to
reduce the amount of materials we use in every phase of our operations — from the plastic we
use in our bottles right down to making sure that we are recycling materials at our in-plant
facilities. Through improvements in our in-plant recycling process, in 2009 we were able to
recycle 95% of the product waste generated at these facilities. In addition, in some of our
administrative offices, we have composting systems in place to also minimize food waste.
Beverage Consumption & Sales. (n.d.).
We are working to get the Extended Producer Responsibility solution to improving
recycling rates, which leads to: Reducing energy and raw materials cost, reducing greenhouse
gas emissions, reducing the impact of bottled water and other packaged goods production, and
creating more jobs. Beverage Consumption & Sales. (n.d.).
INTRODUCTION TO MARKETING BUSINESS PLAN 23
Product Life Cycle
Introduction Stage – Need to educate customers regarding the benefits of the product.
Focus on the product rather than the brand. Promotional offers to support the product and build
demand. The pricing strategies, price skimming and price penetration. Argosy University
Classroom. Principles of Marketing (n.d.).
Naturally-mineral rich crystal clear granite filtered spring water is sourced from natural
springs that were made by nature and the water comes from a 40-feet-think to 90-feet-thick clay
and granite layers deep below the ground, protecting it from any man-made pollution. Natural
Springs granite filtered spring water contains no nitrates; it is naturally free of chemicals. Nicolet
Water Quality: Fresh From The Forest. (2014).
After water is collected at the springs in NH, it undergoes stringent controls to ensure
each drop has been screened for 30x more contaminants than the leading pitcher filter removes.
Our testing standards exceed the standards set by the EPA and the FDA. Poland Spring® 100%
Natural Spring Water (n.d.).
We seal every drop of our natural mineral-rich crystal clear granite filtered spring water
in specially designed bottles that are recyclable, regularly tested for safety, and free of BPA*
(bisphenol-A) Poland Spring® 100% Natural Spring Water. (n.d.).
Introduction Stage Pricing Strategy
Price Skimming involves setting a high price to recover the development costs as soon
as possible. Argosy University Classroom. Principles of Marketing (n.d.).
Price Penetration involves setting a low price to discourage competitors from entering
the market. A low introductory price helps to increase demand for the product allowing the
INTRODUCTION TO MARKETING BUSINESS PLAN 24
organization to take advantage of economies of scale. Argosy University Classroom. Principles
of Marketing (n.d.).
Since we are entering a market that has many competitors, already we are going to enter
the market with the best quality brand of water from the best sources and least eco waist for the
lowest price. Not many competitors have the granite filtered spring water as a brand for quality
for the same prices that would be charged for purified or filtered local water resources.
Growth is a period of rapid market acceptance and increasing profits. Armstrong, G., &
Kotler, P. (n.d.). We will continue to market to our family theme with our quality water and spill
proof caps with the 5oz kids size bottle. In addition, the parents looking to be healthier and stay
fit will need sport bottle caps for the workouts or sports activities.
Maturity is a period of slowdown in sales growth because the product has achieved
acceptance by most potential buyers. Profits level off or decline because of increased marketing
outlays to defend the product against competition. Armstrong, G., & Kotler, P. (n.d.).
This is when we will launch the home delivery side of the business investing in more of
our own distribution channels to delivery water and coolers to people that want our great tasting
water in their home. Offering a promotion for first time customers discounts off cooler prices and
some water free if purchased more than three of the 5-gallon waters each month. This will help
boost sales when the initial launch has started to level out and stop increasing starting the decline
stage.
Decline stage is the decrease in demand and sharp decrease in sales. Marketer needs to
eliminate product or reposition it to extend the life. With the need for water for all human beings
INTRODUCTION TO MARKETING BUSINESS PLAN 25
if we can capture just a small percentage of the market, we can make a profit and the product
would not go into the decline stage and last many years.
BCG Model
Here is what was said about the Boston Consulting Group strategies in a journal entry
edited by Crumley, C. R. (2007).
 Being number one or number two in business is a necessity.
 The prevailing management practices in diversified companies should be scrapped
and replaced with a real portfolio management.
 Competitive strength comes from strategic intent along with macroeconomics and
culture.
 Beating the competition is more important than beating the last quarter.
 Cash flow is pivotal in determining a business's real rate of return.
 Regulation can have a devastating effect on market mechanism
Services Marketing
“External Marketing is the traditional marketing of the Four Ps.” Armstrong, G., &
Kotler, P. (n.d.). “Internal Marketing means that the service firm must orient and motivate its
customer-contact employees and supporting service people to work as a team to provide
customer satisfaction. Marketers must get everyone in the organization to be customer centered.”
Armstrong, G., & Kotler, P. (n.d.).
“Interactive Marketing means that service quality depends heavily on the quality of the
buyer-seller interaction during the service encounter. In product marketing, product quality often
depends little on how the product is obtained. Nevertheless, in services marketing, service
INTRODUCTION TO MARKETING BUSINESS PLAN 26
quality depends on both the service deliverer and the quality of the delivery. Service marketers,
therefore, must master interactive marketing skills.” Armstrong, G., & Kotler, P. (n.d.).
Home/Office Delivery
We will need to train quality, knowledgeable, and reliable customer service reps and
delivery drivers by developing a superior physical environment that our product will be
delivered. By using our own distribution system for the Home Delivery portion of our business,
we can design a superior delivery process. . Making sure that our dispatch schedule has extra
time in case one delivery takes longer than expected so the next customer will not be effected by
it. Always have the phones answered by a person and not a recording during business hours will
assist with differentiating our service from our competitors. NONE
Price Determination and Strategies
Price is the sum of all the values that customers give up in order to gain the benefits of
having or using a product or service. Historically, price has been the major factor affecting buyer
choice. In recent decades, nonprime factors have gained increasing importance. However, price
remains one of the most important elements determining a firm’s market share and profitability.
Home Delivery Pricing - A survey of the surrounding are in New Hampshire shows that the
average price per 5-gallon bottled delivered is $ 6.80. Reference for Business. (1995, April).
Since we are trying to compete in this market with many competitors by giving the quality water
at the lowest price so we are going to charge only $6.00 per 5-gallon delivered bottle water.
Water, bottle, and delivery cost comes to $3.00 per 5-gallon bottle delivered. Charging the
customer $6.00 per 5-gallon delivered bottle generates $3.00 in profit per unit for the company.
INTRODUCTION TO MARKETING BUSINESS PLAN 27
A survey in the sourunding area of New Hampshire states that the average price per 3-
gallon delivered bottle of water is $ 2.10 per 3-gallon delivered bottle of water. Reference for
Business. (1995, April). We are going to charge $4.50 per 3-gallon delivered bottle generates
$2.40 in profit per unit for the company.
We are going to purchase coolers at a cost of $302.00 and rent them to the customers for
a fee of 15.00 per month. In just 21 months, each rented cooler will be paid for and generating
profit long-term for the company. Reference for Business. (1995, April).
Supply & Demand
“Building on last year’s growth of 4.7 percent, bottled water will again post significant
increases in both sales and consumption for 2014. Reflecting a clear trend of consumers
increasingly choosing healthy, convenient, zero-calorie bottled water, BMC reported that over
the past five years alone, bottled water has increased its share of the overall beverage market
from 14.4 percent in 2009, to 17.8 percent in 2014. BMC now predicts that by 2016 bottled
water will be the number one packaged beverage sold in the United States.” Bottled Water.
(2014, December 04).
“Sales of bottled water are expected to enjoy moderate growth over the forecast period.
Off-trade value sales of bottled water are projected to grow by 11% between 2013 and 2018 to
reach US $20.1 billion. Off-trade volume sales of bottled water are also projected to increase by
11% to reach 33.1 billion liters over the same time. The healthful profile of most bottled waters
gives consumers a reason to purchase bottled water over other soft drinks.” Bottled Water.
(2014, December 04).
INTRODUCTION TO MARKETING BUSINESS PLAN 28
Gleick, P. (2013, April 25).
Competition
Beverage Industry Magazine. (2014, January).
Objectives and Strategies
1.9
0.92 0.9 0.86
0.58 0.6
0.53
0.41
0.32
0.25
0
0.2
0.4
0.6
0.8
1
1.2
1.4
1.6
1.8
2
Private
Lable
Dasani Nestle
Water
Pure Life
Aquafina Poland
Spring
Glaceau
Smart
Water
Glaceau
Vitamin
Water
Dear Park Ozarka Fiji
U.S.BillionDollars
Name of top 10 companies 2014
Leading bottled still water brand sales in the U.S., 2014
INTRODUCTION TO MARKETING BUSINESS PLAN 29
We are going to offer the customer a 30 day free trial of our water coolers to the the
customser use to having the cooler nearby. Once the cooler is in place, most customer fine it
easier to leave the cooler and order more products or water deliveries to keep the water stocked.
After two weeks of the 30-day free trial, we will call customer and provide them with other
incentives to keep the water cooler and commit to a rental agreement. We will call the customer
after the two 5-gallon bottles are mostly emptied and offer the incentive may involve free bottles
of water or a reduced fee for water. Reference for Business. (1995, April).
The cost to deliver and place the cooler is minimal, by comparison to the advantage of
having a customer essentially locked in to having water delivered by the same company that is
renting the cooler to them. Reference for Business. (1995, April).
Natural Spring Granite Filtered Bottled Water Company intends to advertise its free trial
offers by way of website online, coupons, social media, and word of mouth. Most competitors do
not currently invest in advertising, leaving the market wide open. Reference for Business. (1995,
April).
Place & Promotion
Distribution Channels
“A company’s channel decisions directly affect every other marketing decision. Pricing
depends on whether the company works with national discount chains, uses high-quality
specialty stores, or sells directly to consumers via the Web. The firm’s sales force and
communications decisions depend on how much persuasion, training, motivation, and support its
channel partners need.” Armstrong, G., & Kotler, P. (2011).
Integration of channels offline and online strategies are most preferable for multi-channel
retailing. Other studies find this as an assumption because retailers are choosing a verity of
disparate multi-channel strategies. Müller-Lankenau, C., Wehmeyer, K.,& Klein, S. (2006). Given
this variety, we conjecture that there is no single best approach to multi-channel retailing, but
INTRODUCTION TO MARKETING BUSINESS PLAN 30
that, depending on the general marketing strategy, different multi-channel strategies can be
suitable for retailers. Müller-Lankenau, C., Wehmeyer, K.,& Klein, S. (2006).
Direct and Indirect Marketing
Direct Marketing has no intermediate levels and the company will sell directly to consumers.
Armstrong, G., & Kotler, P. (2011).
Although distributors preferred direct channels, market coverage was also important. This
is because direct channels could act as a barrier. These channels avoided horizontal expansion
and exerted pressure on distributor’s distribution assets and core business specialization. Ouma,
D., Ombui, K., & Kagiri, W. A. (2013).
Indirect Marketing has on or more intermediaries. Armstrong, G., & Kotler, P. (2011).
Length & Width
Length - The number of intermediary levels indicates the length of a channel. Armstrong,
G., & Kotler, P. (2011).
Width - Width of a channel is equal to the number of options used by a company to
distribute its products. Argosy University Classroom, Principles of Marketing (n.d.).
The Natural Springs Granite filtered water is going to use an indirect marketing channel,
which will include distributors and wholesalers. We are going to have a third party distributor for
our retail side of the campaign to get the water from our bottling facility in New Hampshire to
the retail stores for sale to the consumer.
On the retail side of our water business, we are going to sell our water through drug
stores and grocers stores, for, example Rite Aid, Wall Mart, Safeway, and Save Mart to name a
INTRODUCTION TO MARKETING BUSINESS PLAN 31
few. We are also going to include corner markets, liquor stores, and mom and pop stores located
in smaller cities. This is because we have an unlimited supply of water from our granite
mountain in New Hampshire.
For our Home Delivery and Business Delivery service, we are going to use a direct
marketing channel. They will not only be the home delivery to consumers but we can utilize the
distribution to service our vending machines in the area. This will be our own drivers,
deliveryman, trucks, and sells to customers directly with no intermediate company involved.
Vertical & Horizontal Channel Conflict
Vertical Channel Conflict - Conflicts between different levels of the same channel, is
even more common. Armstrong, G., & Kotler, P. (2011). Selecting channels would include
distributors, retailers, franchisees, distribution, and a sales force. Selecting channels also involves
making decisions about market coverage, vertical systems, multichannel network, strategic
alliances, and a sales force. Ouma, D., Ombui, K., & Kagiri, W. A. (2013).
Horizontal Channel Conflict - Two or more companies at one level join together to
follow a new marketing opportunity. By working together, companies can combine their
financial, production, or marketing resources to accomplish more than any one company could
alone. Armstrong, G., & Kotler, P. (2011). Although distributors preferred direct channels,
market coverage was also important. This is because direct channels could act as a barrier. These
channels avoided horizontal expansion and exerted pressure on distributor’s distribution assets
and core business specialization. Ouma, D., Ombui, K., & Kagiri, W. A. (2013).
INTRODUCTION TO MARKETING BUSINESS PLAN 32
Promotion
Communication Process & Tools
“Retailers use any or all of the promotion tools—advertising, personal selling, sales
promotion, public relations, and direct marketing—to reach consumers.” Armstrong, G., &
Kotler, P. (2011).
Our target market is the young family wanting healthier choices for the children and
alternative to the sugar drinks. Also good alternative to tap water that has many bad chemicals
and sewage that was into our water systems.
With every purchase of the a case of 12oz bottles we can promote or coupon a promotion
to get a free 5oz six pack of the spill proof caps to market these for parents with small children
on the go. We can also offer one time free water container with cap on first purchase of the
bottled 3-gallon and 5-gallon refillable containers if purchased more than three of any
combination of sizes. We will offer these promotions in weekly mailed ads and out our website.
For the Social Media promotion, we can have a promo code for the same promotions
offered in the stores and add additional promotion codes for discounts on products and or free
shipping of products with certain purchases.
The social media ads and television ads are going to be specific towards the quality of our
brand. It will be all about the natural spring water is pure and really comes from the NH springs.
Informing consumers that we are our own company and our core standards are to give the best
prices for the healthiest water on the market.
Advantages with using advertising as the main tool are the ability to get our brand and
name out to a large number of people at low cost. “Communication can be encoded and
INTRODUCTION TO MARKETING BUSINESS PLAN 33
delivered via multiple media, like visual and verbal encoding for television and magazines.”
Argosy University Classroom. Principles of Marketing (n.d.). Disadvantages to using advertising
are that the communication mode is indirect and impersonal and is sent to various markets and
not customized to one pacific market. University Classroom. Principles of Marketing (n.d.).
Sales promotions are an advantage because it provides incentives as invitation to
purchase which is highly persuasive. Argosy University Classroom. Principles of Marketing
(n.d.). Disadvantage to sales promotions is the communication is usually indirect and impersonal
and the effect is usually short-term only. Argosy University Classroom. Principles of Marketing
(n.d.).
Product Life Cycle and Pricing/Promotion
Introduction Stage
Since we are entering a market that has many competitors, already we are going to enter
the market with the best quality brand of water from the best sources and least eco waist for the
lowest price. Not many competitors have the granite filtered spring water as a brand for quality
for the same prices that would be charged for purified or filtered local water resources.
We are going to charge only $6.00 per 5-gallon delivered bottle water. Water, bottle, and
delivery cost comes to $3.00 per 5-gallon bottle delivered. Charging the customer $6.00 per 5-
gallon delivered bottle generates $3.00 in profit per unit for the company. Of course, if needed
in other stages of the life cycle we need more money we could make this promotional offer for
just the first year and then the price can go up one to two dollars more per unit.
INTRODUCTION TO MARKETING BUSINESS PLAN 34
We are going to purchase coolers at a cost of $302.00 and rent them to the customers for
a fee of 15.00 per month. In just 21 months, each rented cooler will be paid for and generating
profit long-term for the company. Reference for Business. (1995, April).
Growth Stage
For the Growth Stages we might have to lower prices when competitors come out with
more products like ours for the retail side, which includes our cases of 12oz and 24oz, bottled
water in the 12oz size bottles for only 7.99 per case and out 20oz bottles for only 9.99 per case.
This will keep us at an advantage of the competition during the growth stage.
Maturity Stage
Maturity Stage we will already be a house hold name for the great taste and healthy
benefits of our water. We would not need any promotions or coupons at this time most
consumers are familiar with Granite filtered Water quality and willing to pay for the excellent
taste. It will be the new trend and with our prices, no one will be able to compete so we will still
be making profits.
Decline Stage
Decline stage is not going to happen with bottled water because it is every persons need
to consumer water. Without tab water, getting worse every day more people will be paying for
good natural water. We might see that the market will level off but we will never have to close
up shop this company should be around forever if we market the product correctly.
INTRODUCTION TO MARKETING BUSINESS PLAN 35
Promotional Strategies
Push is going to be our first strategy using the promotions that we discussed we are
hoping that the demand for our water will be so high that consumers will ask for it because of
our coupons and promotional offers during the introductory stage.
The last methods we are using will the fear factor. Giving all of the bad things in Tap
water and the fact that you cannot take out all of the pesticides, chemicals, and much more from
municipal sources of water, this will make customers think they need to have the best water for
their body. This will force the product with the other incentives we have like money back
guarantee if do not like water once tasted when purchasing the single 12oz or 20oz bottles. We
will also match any competitors prices if found lower than ours did if you bring in the
advertisement to show us. Last for the Home Delivery we can do a 30 day trial money back
guarantee if decide after 30 days you think our product is not what you desire in your home for
any reason.
Personal Selling & Global Markets
Promotion Mix
Advertising
The Natural Springs Granite Filtered Water Bottle Company does recognize the different
media options available to use for the marketing plan. For example, TV, magazines, internet,
radio, newspapers, billboards or banners. Marketing department has chosen the following media
outlets for this campaign.
Television is the first media we choose and is going to be the most expensive. We are
going to run commercials for our ads during NFL football games on Thursdays nights. Thursday
night games are televised but have less people watching on TV for the cost is less expensive and
INTRODUCTION TO MARKETING BUSINESS PLAN 36
we still reach the million customers that may be watching the game. These potential customers
are used to being in the sports type of atmosphere and or could be athletes themselves so being
hydrated is important to this targeted market.
Internet is the second media we choose. We will have an extensive website built for our
B2C & B2B customers to enjoy all of the promotions that we will list for online purchases. It
will give the back ground about where are water comes from and a comparison against municipal
water sources in regards to how healthy and safe our product is with our guarantees. It will also
show how economical we are with our production of the water and how safe are bottles that we
put our water into are and the impact of our bottling facility would have on the environment. We
will also have hours listed to do an online chat on the website so a customer service rep can
answer all questions in real time as the customer is shopping through our products, especially
with the B2C customer that want to start the Home Delivery including water cooler rental with
us.
Website/Survey will offer a promo code for a coupon for after completing the survey so
we can get some feedback about our adds so far and make adjustments where needed for future
changes in the campaign.
Social Media / Internet Surfers – we will have a few employees designated to
advertising our water on the social networking sites, blogs, and any internet type of exposure we
can get our brand out to the public.
Billboard advertisement is the last option. The billboards are going to be next to other
advertisements for casinos, which will ensure more people will see our ads since the people
driving the route to casino, every day will also see our billboard adds.
Personal Selling
INTRODUCTION TO MARKETING BUSINESS PLAN 37
“Personal selling consists of interpersonal interactions with customers and prospects to make
sales and maintain customer relationships.” Armstrong, G., & Kotler, P. (2011).
Sales Cycle overview from the Argosy University Classroom, Principles of Marketing (n.d.).
Prospecting and Qualifying – A salesperson would use the prospecting and qualifying
stage to follow leads or prospects to identifying potential customers based on several different
categories like, volume of business, location, financial ability, growth rate, and product usage.
Pre-approach – Salesman will use this step as the market research stage where they will
learn as much as possible about the customer before his first approach.
Approach – Meeting between salesperson and buyer. Always want to make a good first
impression to get the relationship off to a good start.
Presentation & Demonstration – Salesman will pitch the product that is for sale
showing all of the applications and benefits of the product to the buyer, handling any objections,
clarifying customer anxieties.
Closure – Review any specifications of product and proposal that was offered, and
finally buyer for an order.
Follow up – To ensure that buyer is satisfied with the product one delivered, make a
phone call to the buyer to confirm happy with the purchase, which can ensure repeat business.
Due to the overwhelming cost and the small amount of customers that personal selling
reaches the Natural Spring Granite Filtered Spring Water Bottle Company is not going to have
any outside salesperson. We will have of course our highly trained and educated customer
service team for assistance with ordering online, product questions, stock availability, and Home
Delivery Coordinators etc.
INTRODUCTION TO MARKETING BUSINESS PLAN 38
Sales Promotion
The first sales promotion we are going to do is being a sponsor for one of the NASCAR
teams. NASCAR has the most people that attend every race for a single function and they are
always televised for more viewers to see our brand on TV. We will have the driver drinking our
product after the races and show how important it is to stay hydrated while racing. During a two-
or three-hour race, a driver can lose up to 10 pounds of water so drivers have nutritionists who
help drivers during races make sure they hydrate with the correct fluids. Moltke, D. (2013,
August 3).
Another sales promotion is to collaborate with the Granite State Race Services. They
keep track of all the bookkeeping for over 200 different races a year that we will sponsor. The
races will use our water to sell at the races for the spectators and the runners in the race. We will
be featured on the ads for these races in the surrounding areas of the races from Mount Desert
Island, Me to St. John, Virgin Islands. This will let our brand get exposure for the quality and
value we offer in our water. Teschek, B. (n.d.).
Direct Marketing
We are going to keep a database of all the emails from customers that completed our
survey online out our water and we will then send out as many possible email blasts to each
individual customer with our promotional new offers once they are available.
We are also going to take the list of runners from the marathons and send a personalized
email blast with special promo code for our website for all the runners families witch is
exclusive to runners in the marathon only. We will also then send out the same promotion to
them by mail so they will see the ad for this promotion twice to make sure they got the coupon
and seen the add.
INTRODUCTION TO MARKETING BUSINESS PLAN 39
Public Relations
Public Relations are going to be intertwined into the Marathon races that we are
sponsoring. We are going to have the 20th Year anniversary of the biggest race of the year in
Bristol New Hampshire. This is scheduled at the end of Jan. 2015 about one month after our first
test run of our product launch in retail stores just after Christmas 2014. We are going to have an
educational card or pamphlet that will be passed out with all of the company information,
product knowledge, coupon on the card also, etc.
Brand Management
Branding Strategies
Social media falls under the umbrella of promotion, advertising, and public relations.
Any organization can use social media to strategically communicate key factors regarding brand
associations, evaluate consumer preferences, and adopt content to meet the relationship-
marketing goals. Wallace-McRee, L. (2012).
To cultivate brand awareness, brand image, brand associations, agenda setting and
framing social media has the potential to be used as a communication tool that shapes the
perceptions of the public by increasing exposure through generating contact and displaying the
media information in favorable way. Wallace-McRee, L. (2012).
Emotional Branding
“Researchers say full emotional attachment is common to about 25% of consumers and
emotionally attached consumers purchase substantially more than regular customers, which frees
companies from having to rely on promotions and discounts to keep them buying the brand.
Emotional branding creates lifelong bonds.” (2012).
INTRODUCTION TO MARKETING BUSINESS PLAN 40
“On the flip side however, while advertisers are eager to create emotional attachments
between consumers and their goods, we've found forming these deep feelings can be a difficult
task." Emotional branding creates lifelong bonds. (2012).
Brand Extension
“It is commonly agreed that brand extension is a marketing strategy enabling a firm
producing a product with a well-defined image to use the same brand name in a different product
category.” Venkatesh, R, MBA, P. (2013).
“There is the advantage of increased awareness among consumers of the brand name and
greater profitability from offerings in more than one product category but the success of this
brand extension depends on how strongly the consumers regard the brand's values and goals.”
Venkatesh, R,MBA, P. (2013).
Natural Spring Granite Filtered Spring Water Bottle Company is not going to tie its name to
any other current product or brand. We are going to make our company a brand that people can
refer to as the wholesome brand that always has the great healthy tasting water.
Global Markets
Opportunities & Challenges
The global bottled water market has seen a remarkable and continued annual growth in
the past 15 years. For consumers seeking health and wellbeing, bottled water is an alternate to
the traditional soft drinks. The media attention on the growing obesity problem in the West,
particularly in the European and North American populations, the links made between it and the
increased consumption of soft drinks by children has reinforced the growth of bottled water.
INTRODUCTION TO MARKETING BUSINESS PLAN 41
GLOBAL BOTTLED WATER MARKET
leading countries’ consumption and compound Annual growth rates 2006 – 2011
2011 Millions of Gallons CAGR*
Rank Countries 2006 2011 2006/11
1 United States 8,225.0 9,107.3 2.0%
2 China 4,163.3 7,686.4 13.0%
3 Mexico 5,359.9 7,520.7 7.0%
4 Brazil 3,301.6 4,500.9 6.4%
5 Indonesia 2,155.9 3,760.6 11.8%
6 Thailand 1,426.2 3,118.8 16.9%
7 Italy 3,115.5 3,034.7 -0.5%
8 Germany 2,808.9 2,954.2 1.0%
9 France 1,524.0 2,291.0 0.0%
10 Spain 1,524.0 1,514.8 -0.1%
Top 10 Subtotal 34,395.6 45,489.3 5.8%
All Others 12,606.8 15,880.7 4.7%
World Totals 47,002.4 5.5%
* compound annual growth rate
Beverage Marketing corporation (2012)
Retrieved from http://www.bottledwater.org/files/2011BWstats.pdf
INTRODUCTION TO MARKETING BUSINESS PLAN 42
Linebac, N., & Gritzner, M. L. (31, October 31).
Opportunities and Challenges in the global market
Opportunities
 Growth in urbanization and population
 Increasing level of health awareness
 Bottle water is a rapidly growing
 Competitive market segments
 Rise in income and consumption
Challenges
 Spurious brands have flooded the bottle water market
INTRODUCTION TO MARKETING BUSINESS PLAN 43
 Low penetration in rural markets
 Possible threat from litigation and public campaigns
 Brand and category differentiation
 Increasing use of water purifiers.
Natural Springs Bottle Water Company is going to choose to adapted global marketing
strategy because the same product cannot be marketed in the same way from one culture to the
next. Other reasons for the change in the market strategies would be Demographic
Characteristics, Geographic Factors, Sociocultural Factors, Economic Factors, and
Political/Legal Factors. Because of all these factors, we are going to Adapt Global Marketing.
Which is an international marketing strategy for adjusting market strategy and mix of elements to
each internal target market, bearing more costs but hoping for a larger market share and return.
Armstrong, G., & Kotler, P. (2011). We will also try to collaborate up with a company in these
foreign markets to set up some Joint Venturing, which means to enter foreign markets by joining
with foreign companies to produce or market a product or service.
INTRODUCTION TO MARKETING BUSINESS PLAN 44
REFERENCES
Part 1
Armstrong, G. & Kotler, P. (2009). Argosy University MARKETING: An Introduction, 9e.
Retrieved from http://digitalbookshelf.argosy.edu/#/books /9780558021122/
pages/48398847
Kumar, N. (2004-06). Analysis of Marketing Strategy of Mineral Water Industry. Retreived from
http://www.slideshare.net/ajmerasahil/packaged-drinking-wa?related=1
De Melo, J. (2012), November 20). Bottled Water Case 2006. Retrieved from
http://www.slidesshare.net/juliedemelo7/bottled-water-case-2006
International Water Bottled Association (IBWA). (2014). Bottled Water Markets. Retrieved from
http://www.bottledwater.org/economics/bottled-water-market
Part 2
Argosy University Classroom. Principles of Marketing (n.d.). Unit 2 Module 2, Retrieved
November 28, 2014, from http://myeclassonline.com/
International Water Bottled Association (IBWA). (2014). Bottled Water Markets. Retrieved from
http://www.bottledwater.org/economics/bottled-water-market
International Water Bottled Association (IBWA). (2014). Bottled Water. Retrieved from
http://www.bottledwater.org/economics/real-cost-of-bottled-water
Gleick, P. (2013, April 25). Bottled Water Sales: The Shocking Reality. Retreived from
http://scienceblogs.com/significantfigures/index.php/2013/04/25/bottled-water-sales-the-
shocking-reality/
Bottled Water Industry: Home and Office Delivery. (n.d.). Retrieved November 30, 2014, from
http://www.bottledwater.org/economics/bottled-water-industry
Chart References
Gleick, P. (2013, April 25). Bottled Water Sales: The Shocking Reality. Retreived from
http://scienceblogs.com/significantfigures/index.php/2013/04/25/bottled-water-sales-the-
shocking-reality/
US Census Bureau. (2014, August). Value of U.S. product shipments of bottled water from 2002
to 2012 (in billion U.S. dollars) [Chart]. In Statista. Retrieved from
http://www.statista.com/statistics/187287/us-bottled-water-product-shipment-value-since-
2002/
Beverage Industry Magazine. (2014, July). Sales of the leading 10 bottled still water brands of
the United States in 2014 (in billion U.S. dollars) [Chart]. In Statista. Retrieved from
INTRODUCTION TO MARKETING BUSINESS PLAN 45
http://www.statista.com/statistics/188312/top-bottled-still-water-brands-in-the-united-
states
Beverage Industry Magazine. (2014, January). Share of bottled water sales in the United States
in 2012, by distribution channel [Chart]. In Statista. Retrieved from
http://www.statista.com/statistics/252387/share-of-us-bottled-water-sales-by-distribution-
channel/
Part 3
Armstrong, G., & Kotler, P. (2011). Chapter 7 Products,Services, and Brands Customers Value. In
Marketing: An introduction (9th ed.,p. 200). Boston: Prentice Hall.
Raab,M. (2010, November 13). Product levels. Retrieved from
http://maryraab.wordpress.com/2010/11/13/product-levels
Koszegi-Nagy, Z. (2014, March 31). Marketing all around us - The five levels of the product. Retrieved
from http://zsobig.hubpages.com/hub/Marketing-all-around-us-The-five-levels-of-the-product
Beverage Consumption & Sales. (n.d.). Retrieved December 4, 2014, from http://www.nestle-
watersna.com/en/about-nestle-waters/industry-overview/beverage-consumption-sales
Nicolet Water Quality: Fresh From The Forest. (2014). Retrieved from
http://www.nicoletwater.com/water-quality/
Poland Spring® 100% Natural Spring Water. (n.d.). Retrieved December 5,2014, from
http://www.polandspring.com/#/assured/our_quality
Argosy University Classroom. Principles of Marketing (n.d.). Unit 3 Module 3, Retrieved December 5,
2004 from http://myeclassonline.com/
Armstrong, G., & Kotler, P. (n.d.). Argosy University: Chapter 8 New Product Development and Product
Life Cycle Strategies. Retrieved December 5, 2014, from
https://digitalbookshelf.argosy.edu/#/books/9780558021122/pages/48399594
Crumley, C. R. (2007). The boston consulting group on strategy. Journal of Applied Management and
Entrepreneurship, 12(4),91-93. Retrieved from
http://search.proquest.com/docview/203899936?accountid=34899
Bottled Water. (2014, December 04). Retrieved from http://www.bottledwater.org/bottled-water-sales-
and-consumption-projected-increase-2014-expected-be-number-one-packaged-drink
Reference for Business. (1995, April). Retrieved from http://www.referenceforbusiness.com/business-
plans/Business-Plans-Volume-04/Bottled-Water-Manufacturer.html
Chart References
INTRODUCTION TO MARKETING BUSINESS PLAN 46
Gleick, P. (2013, April 25). Bottled Water Sales: The Shocking Reality. Retreived from
http://scienceblogs.com/significantfigures/index.php/2013/04/25/bottled-water-sales-the-
shocking-reality/
Beverage Industry Magazine. (2014, July). Sales of the leading 10 bottled still water brands of the United
States in 2014 (in billion U.S. dollars) [Chart]. In Statista. Retrieved from
http://www.statista.com/statistics/188312/top-bottled-still-water-brands-in-the-united-states
Part 4
Armstrong, G., & Kotler, P. (2011). CHAPTER 10 Marketing Channels: Delivering Customer
Value. Marketing: An introduction (9th ed., p. 294). Boston: Prentice Hall.
Argosy University Classroom. Principles of Marketing (n.d.). Unit 4, Module 4, Retrieved
December 5, 2004 from http://myeclassonline.com/
Ouma, D., Ombui, K., & Kagiri, W. A. (2013). Efficiency in the kenyan purified bottled water
industry: A channel intensity strategy. International Journal of Business and Social
Science, 4(3) Retrieved from
http://search.proquest.com/docview/1321484316?accountid=34899
Müller-Lankenau, C., Wehmeyer, K.,& Klein, S. (2006). Strategic channel alignment: An analysis of the
configuration of physical and virtual marketing channels. Information Systems and eBusiness
Management, 4(2),187-216. doi:http://dx.doi.org/10.1007/s10257-005-0031-4
Part 5
Armstrong, G., & Kotler, P. (2011). CHAPTER 13 Communicating Customer Value: Personal
Selling and Sales Promotion. Marketing: An introduction (9th ed., p. 385). Boston:
Prentice Hall.
Argosy University Classroom. Principles of Marketing (n.d.). Unit 5, Module 5, Retrieved
December 5, 2004 from http://myeclassonline.com/
Moltke, D. (2013, August 3). Hydration for Race Car Drivers. Retrieved from
http://www.stack.com/2013/08/03/race-car-nutrition/
Teschek, B. (n.d.). Granite State Race Services. Retrieved December 17, 2014, from
http://www.gsrs.com/index.php
Wallace-McRee, L. (2012). Professional sport and facebook: A content analysis of branding,
marketing, and communication strategies in the national football league (Order No.
3550858). Available from ProQuest Dissertations & Theses Full Text; ProQuest
Dissertations & Theses Global. (1316886671). Retrieved from
http://search.proquest.com/docview/1316886671?accountid=34899
INTRODUCTION TO MARKETING BUSINESS PLAN 47
Emotional branding creates lifelong bonds. (2012). B & T Weekly, Retrieved from
http://search.proquest.com/docview/1220528449?accountid=34899
Venkatesh, R,MBA, P. (2013). BRANDING AND BRAND EXTENSION
STRATEGIES. International Journal of Marketing and Technology, 3(4), 49-57.
Retrieved from http://search.proquest.com/docview/1412868136?accountid=34899
Netscribes Inc. (2013, September 13). Market Research Report : Bottled water market in india
2013. Retrieved from http://www.slideshare.net/ResearchOnIndia/market-research-
report-bottled-water-market-in-india-2013?qid=53ca6313-49c6-4528-9195-
f834eb36a174&v=default&b=&from_search=4
Linebac, N., & Gritzner, M. L. (31, October 31). Maps101 - BOTTLED WATER'S TRUE
COSTS. Retrieved from
http://demo.maps101.com/index.php?option=com_flexicontent&view=items&id=565%3
Abottled-waters-true-costs
Armstrong, G., & Kotler, P. (2011). CHAPTER 15 Global Marketing, Marketing: An
introduction (9th ed., p. 385). Boston: Prentic

More Related Content

What's hot

A Winning Market Study for the Establishment of Mini Stop Conveinence Store
A Winning Market Study for the Establishment of Mini Stop Conveinence StoreA Winning Market Study for the Establishment of Mini Stop Conveinence Store
A Winning Market Study for the Establishment of Mini Stop Conveinence StoreJandel Gimeno
 
Safeguard - 10 Step Marketing Plan by Blazing Nathan Lee
Safeguard - 10 Step Marketing Plan by Blazing Nathan LeeSafeguard - 10 Step Marketing Plan by Blazing Nathan Lee
Safeguard - 10 Step Marketing Plan by Blazing Nathan Leeleenathan
 
New product launch pepsi E
New product launch pepsi ENew product launch pepsi E
New product launch pepsi Eminalym
 
INFINITEA-powerpoint.pdf
INFINITEA-powerpoint.pdfINFINITEA-powerpoint.pdf
INFINITEA-powerpoint.pdfNovyRivera1
 
Entrepreneurship Product Sample " Oreo A La Crema"
Entrepreneurship Product Sample " Oreo A La Crema"Entrepreneurship Product Sample " Oreo A La Crema"
Entrepreneurship Product Sample " Oreo A La Crema"Yokimura Dimaunahan
 
Business plan buko juice
Business plan buko juiceBusiness plan buko juice
Business plan buko juicecharubem
 
Micromarket Analysis (7-11 vs. MINISTOP)
Micromarket Analysis (7-11 vs. MINISTOP)Micromarket Analysis (7-11 vs. MINISTOP)
Micromarket Analysis (7-11 vs. MINISTOP)Michael Ligayo
 
Stakeholder influence (Further)
Stakeholder influence (Further)Stakeholder influence (Further)
Stakeholder influence (Further)Lewis Appleton
 
PESTLE Analysis for Starbucks - By Jimit Patel
PESTLE Analysis for Starbucks - By Jimit PatelPESTLE Analysis for Starbucks - By Jimit Patel
PESTLE Analysis for Starbucks - By Jimit PatelJimitPatel53
 
L'Oréal Brandstorm 2017
L'Oréal Brandstorm 2017L'Oréal Brandstorm 2017
L'Oréal Brandstorm 2017Luca Galvani
 
Bus dev plan
Bus dev planBus dev plan
Bus dev planitaboogie
 
Distribution and Logistic Management for Local Bakery
Distribution and Logistic Management for Local Bakery Distribution and Logistic Management for Local Bakery
Distribution and Logistic Management for Local Bakery Thomas Vermaelen
 
Food truck 2016
Food truck   2016Food truck   2016
Food truck 2016Samar Saha
 
Evian ppt Case Study
Evian ppt Case StudyEvian ppt Case Study
Evian ppt Case StudySoham Gorade
 
Feasibility Study Product Proposals
Feasibility Study Product ProposalsFeasibility Study Product Proposals
Feasibility Study Product ProposalsBryan Agustin Oculam
 
Packaged drinking water pdf pritha.s14@fmsedu-faculty-of-management-studies
Packaged drinking water pdf  pritha.s14@fmsedu-faculty-of-management-studiesPackaged drinking water pdf  pritha.s14@fmsedu-faculty-of-management-studies
Packaged drinking water pdf pritha.s14@fmsedu-faculty-of-management-studiesperkyPri24
 
Marketing Management: Laundry Service with Pickup and Delivery Research
Marketing Management: Laundry Service with Pickup and Delivery ResearchMarketing Management: Laundry Service with Pickup and Delivery Research
Marketing Management: Laundry Service with Pickup and Delivery ResearchAngelo Yutuc
 

What's hot (20)

A Winning Market Study for the Establishment of Mini Stop Conveinence Store
A Winning Market Study for the Establishment of Mini Stop Conveinence StoreA Winning Market Study for the Establishment of Mini Stop Conveinence Store
A Winning Market Study for the Establishment of Mini Stop Conveinence Store
 
Safeguard - 10 Step Marketing Plan by Blazing Nathan Lee
Safeguard - 10 Step Marketing Plan by Blazing Nathan LeeSafeguard - 10 Step Marketing Plan by Blazing Nathan Lee
Safeguard - 10 Step Marketing Plan by Blazing Nathan Lee
 
New product launch pepsi E
New product launch pepsi ENew product launch pepsi E
New product launch pepsi E
 
INFINITEA-powerpoint.pdf
INFINITEA-powerpoint.pdfINFINITEA-powerpoint.pdf
INFINITEA-powerpoint.pdf
 
Entrepreneurship Product Sample " Oreo A La Crema"
Entrepreneurship Product Sample " Oreo A La Crema"Entrepreneurship Product Sample " Oreo A La Crema"
Entrepreneurship Product Sample " Oreo A La Crema"
 
Nescafe
NescafeNescafe
Nescafe
 
Business plan buko juice
Business plan buko juiceBusiness plan buko juice
Business plan buko juice
 
Micromarket Analysis (7-11 vs. MINISTOP)
Micromarket Analysis (7-11 vs. MINISTOP)Micromarket Analysis (7-11 vs. MINISTOP)
Micromarket Analysis (7-11 vs. MINISTOP)
 
Stakeholder influence (Further)
Stakeholder influence (Further)Stakeholder influence (Further)
Stakeholder influence (Further)
 
PESTLE Analysis for Starbucks - By Jimit Patel
PESTLE Analysis for Starbucks - By Jimit PatelPESTLE Analysis for Starbucks - By Jimit Patel
PESTLE Analysis for Starbucks - By Jimit Patel
 
Belo Essentials
Belo EssentialsBelo Essentials
Belo Essentials
 
L'Oréal Brandstorm 2017
L'Oréal Brandstorm 2017L'Oréal Brandstorm 2017
L'Oréal Brandstorm 2017
 
Bus dev plan
Bus dev planBus dev plan
Bus dev plan
 
Starbucks Reusable Cup Proposal
Starbucks Reusable Cup ProposalStarbucks Reusable Cup Proposal
Starbucks Reusable Cup Proposal
 
Distribution and Logistic Management for Local Bakery
Distribution and Logistic Management for Local Bakery Distribution and Logistic Management for Local Bakery
Distribution and Logistic Management for Local Bakery
 
Food truck 2016
Food truck   2016Food truck   2016
Food truck 2016
 
Evian ppt Case Study
Evian ppt Case StudyEvian ppt Case Study
Evian ppt Case Study
 
Feasibility Study Product Proposals
Feasibility Study Product ProposalsFeasibility Study Product Proposals
Feasibility Study Product Proposals
 
Packaged drinking water pdf pritha.s14@fmsedu-faculty-of-management-studies
Packaged drinking water pdf  pritha.s14@fmsedu-faculty-of-management-studiesPackaged drinking water pdf  pritha.s14@fmsedu-faculty-of-management-studies
Packaged drinking water pdf pritha.s14@fmsedu-faculty-of-management-studies
 
Marketing Management: Laundry Service with Pickup and Delivery Research
Marketing Management: Laundry Service with Pickup and Delivery ResearchMarketing Management: Laundry Service with Pickup and Delivery Research
Marketing Management: Laundry Service with Pickup and Delivery Research
 

Viewers also liked

Analysis of marketing strategy of mineral water industry
Analysis of marketing strategy of mineral water industryAnalysis of marketing strategy of mineral water industry
Analysis of marketing strategy of mineral water industrySonal Agarwal
 
Mineral water- Four P's of Marketing; Product, Price, Place, Promotion
Mineral water- Four P's of Marketing; Product, Price, Place, PromotionMineral water- Four P's of Marketing; Product, Price, Place, Promotion
Mineral water- Four P's of Marketing; Product, Price, Place, PromotionSalma Bashir
 
Creative inc. Marketing IMC Poland Spring Presentation
Creative inc. Marketing IMC Poland Spring PresentationCreative inc. Marketing IMC Poland Spring Presentation
Creative inc. Marketing IMC Poland Spring PresentationAndy He
 
Ph 103 final oral exam notes (Rowena Azada-Palacios)
Ph 103 final oral exam notes (Rowena Azada-Palacios)Ph 103 final oral exam notes (Rowena Azada-Palacios)
Ph 103 final oral exam notes (Rowena Azada-Palacios)Eleanor Kawsek
 
Market Research Report : Bottled water market in india 2013
Market Research Report : Bottled water market in india 2013Market Research Report : Bottled water market in india 2013
Market Research Report : Bottled water market in india 2013Netscribes, Inc.
 
Strategic Marketing - Evian
Strategic Marketing - EvianStrategic Marketing - Evian
Strategic Marketing - EvianJackie Lee
 
Business plan,of dehydration vegetable.m Rahil
Business plan,of dehydration vegetable.m RahilBusiness plan,of dehydration vegetable.m Rahil
Business plan,of dehydration vegetable.m Rahilmuhammad raheel
 
Three levels of products
Three levels of productsThree levels of products
Three levels of productsDSPM
 
Business Development Proposal Project for a Retail Merchandising Service Comp...
Business Development Proposal Project for a Retail Merchandising Service Comp...Business Development Proposal Project for a Retail Merchandising Service Comp...
Business Development Proposal Project for a Retail Merchandising Service Comp...Dragan Ocokoljic
 
Mineral Water Launching
Mineral Water LaunchingMineral Water Launching
Mineral Water LaunchingRizwan Qamar
 
Coca Cola Marketing Plan
Coca Cola Marketing PlanCoca Cola Marketing Plan
Coca Cola Marketing Planvanessalyle19
 
What will be the cost of your Mineral Water Plant in India
What will be the cost of your Mineral Water Plant in IndiaWhat will be the cost of your Mineral Water Plant in India
What will be the cost of your Mineral Water Plant in IndiaSoumitra Ghotikar
 
Gatorade Marketing Campaign Analysis: Rebranding G
Gatorade Marketing Campaign Analysis: Rebranding GGatorade Marketing Campaign Analysis: Rebranding G
Gatorade Marketing Campaign Analysis: Rebranding Gjwangen
 
PPT on pricing strategies
PPT on pricing strategiesPPT on pricing strategies
PPT on pricing strategiesITC Limited
 
BCG matrix with example
BCG matrix with exampleBCG matrix with example
BCG matrix with exampleMayur Narole
 
Services Marketing
Services MarketingServices Marketing
Services Marketingsarveshsoni
 

Viewers also liked (19)

Strategic Marketing Plan
Strategic Marketing PlanStrategic Marketing Plan
Strategic Marketing Plan
 
Analysis of marketing strategy of mineral water industry
Analysis of marketing strategy of mineral water industryAnalysis of marketing strategy of mineral water industry
Analysis of marketing strategy of mineral water industry
 
Mineral water- Four P's of Marketing; Product, Price, Place, Promotion
Mineral water- Four P's of Marketing; Product, Price, Place, PromotionMineral water- Four P's of Marketing; Product, Price, Place, Promotion
Mineral water- Four P's of Marketing; Product, Price, Place, Promotion
 
Creative inc. Marketing IMC Poland Spring Presentation
Creative inc. Marketing IMC Poland Spring PresentationCreative inc. Marketing IMC Poland Spring Presentation
Creative inc. Marketing IMC Poland Spring Presentation
 
Marketing plan
Marketing planMarketing plan
Marketing plan
 
Ph 103 final oral exam notes (Rowena Azada-Palacios)
Ph 103 final oral exam notes (Rowena Azada-Palacios)Ph 103 final oral exam notes (Rowena Azada-Palacios)
Ph 103 final oral exam notes (Rowena Azada-Palacios)
 
Market Research Report : Bottled water market in india 2013
Market Research Report : Bottled water market in india 2013Market Research Report : Bottled water market in india 2013
Market Research Report : Bottled water market in india 2013
 
Strategic Marketing - Evian
Strategic Marketing - EvianStrategic Marketing - Evian
Strategic Marketing - Evian
 
Business plan,of dehydration vegetable.m Rahil
Business plan,of dehydration vegetable.m RahilBusiness plan,of dehydration vegetable.m Rahil
Business plan,of dehydration vegetable.m Rahil
 
BCG Matrix
BCG MatrixBCG Matrix
BCG Matrix
 
Three levels of products
Three levels of productsThree levels of products
Three levels of products
 
Business Development Proposal Project for a Retail Merchandising Service Comp...
Business Development Proposal Project for a Retail Merchandising Service Comp...Business Development Proposal Project for a Retail Merchandising Service Comp...
Business Development Proposal Project for a Retail Merchandising Service Comp...
 
Mineral Water Launching
Mineral Water LaunchingMineral Water Launching
Mineral Water Launching
 
Coca Cola Marketing Plan
Coca Cola Marketing PlanCoca Cola Marketing Plan
Coca Cola Marketing Plan
 
What will be the cost of your Mineral Water Plant in India
What will be the cost of your Mineral Water Plant in IndiaWhat will be the cost of your Mineral Water Plant in India
What will be the cost of your Mineral Water Plant in India
 
Gatorade Marketing Campaign Analysis: Rebranding G
Gatorade Marketing Campaign Analysis: Rebranding GGatorade Marketing Campaign Analysis: Rebranding G
Gatorade Marketing Campaign Analysis: Rebranding G
 
PPT on pricing strategies
PPT on pricing strategiesPPT on pricing strategies
PPT on pricing strategies
 
BCG matrix with example
BCG matrix with exampleBCG matrix with example
BCG matrix with example
 
Services Marketing
Services MarketingServices Marketing
Services Marketing
 

Similar to OgleS_M5_A1

Running Head COMPANY DESCRIPTION AND SWOT ANALYSISCOMPANY DESCR.docx
Running Head COMPANY DESCRIPTION AND SWOT ANALYSISCOMPANY DESCR.docxRunning Head COMPANY DESCRIPTION AND SWOT ANALYSISCOMPANY DESCR.docx
Running Head COMPANY DESCRIPTION AND SWOT ANALYSISCOMPANY DESCR.docxhealdkathaleen
 
Customer Satisfaction towards the products and services of Aiswarya Beverages...
Customer Satisfaction towards the products and services of Aiswarya Beverages...Customer Satisfaction towards the products and services of Aiswarya Beverages...
Customer Satisfaction towards the products and services of Aiswarya Beverages...RIBU ALEXANDER
 
Marketing plane
Marketing planeMarketing plane
Marketing planeAl Amin
 
Packaged drinking water industry in UAE
Packaged drinking water industry in UAEPackaged drinking water industry in UAE
Packaged drinking water industry in UAERahul Sharma
 
Bailley Water project_ NK
Bailley Water project_ NKBailley Water project_ NK
Bailley Water project_ NKYasobanta Sahoo
 
A case study on competition in the bottled water industry in 2006
A case study on competition in the bottled water industry in 2006A case study on competition in the bottled water industry in 2006
A case study on competition in the bottled water industry in 2006Aashish Rathod
 
Running head STEELNUTRIDRINK .docx
Running head STEELNUTRIDRINK                                   .docxRunning head STEELNUTRIDRINK                                   .docx
Running head STEELNUTRIDRINK .docxtoltonkendal
 
Bottled water industry analysis India
Bottled water industry analysis  IndiaBottled water industry analysis  India
Bottled water industry analysis IndiaJayesh Gawde
 
Marketing Management AIB MBA (2016)
Marketing Management AIB MBA (2016)Marketing Management AIB MBA (2016)
Marketing Management AIB MBA (2016)Dimithri Wellage
 
New product development(green coconut water jaul)
New product development(green coconut water jaul)New product development(green coconut water jaul)
New product development(green coconut water jaul)Mohammed Razib
 
Country report on EVIAN in the UNITED KINGDOM vs BISLERI in INDIA
Country report on EVIAN in the UNITED KINGDOM vs BISLERI in INDIACountry report on EVIAN in the UNITED KINGDOM vs BISLERI in INDIA
Country report on EVIAN in the UNITED KINGDOM vs BISLERI in INDIAsiva prasad
 
Finalreport Sm
Finalreport SmFinalreport Sm
Finalreport Smsuruchi
 
Fruit2O Advertising Class Plan
Fruit2O Advertising Class PlanFruit2O Advertising Class Plan
Fruit2O Advertising Class PlanCourtney Brown
 
Birds Beverages Description and SWOT AnalysisKeisha .docx
Birds Beverages Description and SWOT AnalysisKeisha .docxBirds Beverages Description and SWOT AnalysisKeisha .docx
Birds Beverages Description and SWOT AnalysisKeisha .docxmoirarandell
 
Sahara q shop project
Sahara q shop projectSahara q shop project
Sahara q shop projectSonu Kumar
 
sahara q shop project Marketing & HR policy
sahara q shop project Marketing & HR  policy sahara q shop project Marketing & HR  policy
sahara q shop project Marketing & HR policy Sonu Kumar
 
Sahara q shop project
Sahara q shop projectSahara q shop project
Sahara q shop projectSonu Kumar
 

Similar to OgleS_M5_A1 (20)

Running Head COMPANY DESCRIPTION AND SWOT ANALYSISCOMPANY DESCR.docx
Running Head COMPANY DESCRIPTION AND SWOT ANALYSISCOMPANY DESCR.docxRunning Head COMPANY DESCRIPTION AND SWOT ANALYSISCOMPANY DESCR.docx
Running Head COMPANY DESCRIPTION AND SWOT ANALYSISCOMPANY DESCR.docx
 
Customer Satisfaction towards the products and services of Aiswarya Beverages...
Customer Satisfaction towards the products and services of Aiswarya Beverages...Customer Satisfaction towards the products and services of Aiswarya Beverages...
Customer Satisfaction towards the products and services of Aiswarya Beverages...
 
Marketing plane
Marketing planeMarketing plane
Marketing plane
 
Hydra Mineral water project
Hydra Mineral water projectHydra Mineral water project
Hydra Mineral water project
 
Packaged drinking water industry in UAE
Packaged drinking water industry in UAEPackaged drinking water industry in UAE
Packaged drinking water industry in UAE
 
Bailley Water project_ NK
Bailley Water project_ NKBailley Water project_ NK
Bailley Water project_ NK
 
A case study on competition in the bottled water industry in 2006
A case study on competition in the bottled water industry in 2006A case study on competition in the bottled water industry in 2006
A case study on competition in the bottled water industry in 2006
 
Running head STEELNUTRIDRINK .docx
Running head STEELNUTRIDRINK                                   .docxRunning head STEELNUTRIDRINK                                   .docx
Running head STEELNUTRIDRINK .docx
 
Bottled water industry analysis India
Bottled water industry analysis  IndiaBottled water industry analysis  India
Bottled water industry analysis India
 
jaul coconut water
jaul coconut waterjaul coconut water
jaul coconut water
 
Book
BookBook
Book
 
Marketing Management AIB MBA (2016)
Marketing Management AIB MBA (2016)Marketing Management AIB MBA (2016)
Marketing Management AIB MBA (2016)
 
New product development(green coconut water jaul)
New product development(green coconut water jaul)New product development(green coconut water jaul)
New product development(green coconut water jaul)
 
Country report on EVIAN in the UNITED KINGDOM vs BISLERI in INDIA
Country report on EVIAN in the UNITED KINGDOM vs BISLERI in INDIACountry report on EVIAN in the UNITED KINGDOM vs BISLERI in INDIA
Country report on EVIAN in the UNITED KINGDOM vs BISLERI in INDIA
 
Finalreport Sm
Finalreport SmFinalreport Sm
Finalreport Sm
 
Fruit2O Advertising Class Plan
Fruit2O Advertising Class PlanFruit2O Advertising Class Plan
Fruit2O Advertising Class Plan
 
Birds Beverages Description and SWOT AnalysisKeisha .docx
Birds Beverages Description and SWOT AnalysisKeisha .docxBirds Beverages Description and SWOT AnalysisKeisha .docx
Birds Beverages Description and SWOT AnalysisKeisha .docx
 
Sahara q shop project
Sahara q shop projectSahara q shop project
Sahara q shop project
 
sahara q shop project Marketing & HR policy
sahara q shop project Marketing & HR  policy sahara q shop project Marketing & HR  policy
sahara q shop project Marketing & HR policy
 
Sahara q shop project
Sahara q shop projectSahara q shop project
Sahara q shop project
 

OgleS_M5_A1

  • 1. INTRODUCTION TO MARKETING BUSINESS PLAN 1 INTRODUCTION TO MARKETING BUSINESS PLAN Natural Spring Granite Filtered Bottled Water Company Stacey Ogle Principles of Marketing | MKT230 A01| December 17, 2014
  • 2. INTRODUCTION TO MARKETING BUSINESS PLAN 2 Table of Contents Page # Executive Summary 2 The Environment Part 1 3 Marketing Research and Targeting Part 2 9 Product & Pricing Part 3 19 Place & Promotion Part 4 29 Personal Selling & Global Markets Part 5 35 _____________________________________________________________________________ Executive Summary The purpose of this report is to evaluate Natural Spring Granite Filtered Bottle Water industry and comprehend out we can develop strategic intent for their business with the internal and external environments. The analysis of the management process will achieve competitiveness and earn better than average returns on investments. It will also identify the target market opportunities with in the US and with global markets along with the threats in those markets that we will overcome by using this plan analysis like SWOT, Marketing Mix, and Product Life Cycles etc. By the end of this report, our future strategy will be mentioned as well as all recommendations about Natural Spring Granite Filtered Spring Water plan into strategic orientation in order to perform better in all business worlds.
  • 3. INTRODUCTION TO MARKETING BUSINESS PLAN 3 Introduction to Marketing Plan: Natural Spring Granite Filtered Spring Water Bottled Company. The Environment Marketing, more than any other business function, deals with customers. Although we will soon explore more-detailed definitions of marketing, perhaps the simplest definition is this one: Marketing is managing profitable customer relationships. The twofold goal of marketing is to attract new customers by promising superior value and to keep and grow current customers by delivering satisfaction. Armstrong, G. & Kotler, P. (2009) Water is a necessity to survive for all of humankind. Water that is from a source that is untreated, for example, bore wells, rivers etc. is not safe for anyone to drink. Water with impurities can cause you to get sick or disease. Therefore, water is purified and bottled for humankind to drink. This bottled water is used every ware you look like offices, schools, restaurants, railway stations, airport, bus stations, hospitals, homes, etc. Kumar, N. (2004-06). Just about every ware you go has some kind of water vending machine available to purchase a bottled water. Marketing Mix Product North Americans have recently begun to drink bottled water, but already the distinction between spring water, mineral water, and filtered tap water is blurred beyond redemption. Kumar, N. (2004-06). Spring water must come from a natural spring with proven purity of contaminants; mineral water must contain 2000 parts per million in minerals and filtered tap water means just that. Kumar, N. (2004-06).
  • 4. INTRODUCTION TO MARKETING BUSINESS PLAN 4 We will offer an assortment of options for purchase to the consumer. The most recent added is the six pack of 5-ounce children size waters that all have the spill proof caps. We will also offer the 12 oz. or the 1-liter, which can come in the individual or the case of 12 or 24. Do not forget about the 3 gallon and 5 gallon refill containers that you can fill up at a number of our refilling stations. Place Since we brought Pepsi into our plan we will be using and implementing their facility to transport the bottled water. We will also purchase a big factory in NH where we are currently located. To get the water bottled and boxed up for transport. Price Price is going to be for the middle class family or single parent homes that want the great test and healthy spring mineral water for their family without the real expensive price. According to the Beverage Marketing Corporation (BMC), the average wholesale price per gallon of domestic non-sparkling bottled water was $1.13 in 2012. From popular retail food product, bottled water is available at many differing price points. International Water Bottled Association. (IBWA). (2014). BMC also notes that research shows consumers most often tend to buy bottled water in bulk from supermarkets or large discount retailers as they often prefer to purchase bottled water in cost-saving volume. International Water Bottled Association, (IBWA) (2014). Where did consumers buy bottled water?  45% Mass Merchandisers, club stores, dollar stores, online (where the price for gallon is generally much lower).  28.5% Grocery stores.
  • 5. INTRODUCTION TO MARKETING BUSINESS PLAN 5  5.7 % Convenience Stores (where the price per gallon is likely to be higher)  3.5% Drug Stores.  NOTE: The remaining 17% is accounted for through vending, food service, and other sales. International Water Bottled Association. (IBWA). (2014). Promotion With every purchase of the a case of 12oz bottles we can promote or coupon a promotion to get a free 5oz six pack of the spill proof caps to market these for parents with small children on the go. We can also offer one time free water container with cap on first purchase of the bottled 3 and 5-gallon refillable containers if purchased more than three of any combination of sizes. For the Social Media promotion, we can have a promo code for the same promotions offered in the stores and add additional promotion codes for discounts on products and or free shipping of products with certain purchases. The social media ads and television ads are going to be specific towards the quality of our brand. It will be all about the natural spring water is pure and really comes from the NH springs. Informing consumers that we are our own company and our core standards are to give the best prices for the healthiest water on the market. Marketing Environment Key success factors: Water is the world’s most attractive beverage category. Demand is increasing day by day in the bottle water industry. The impact of brand is important because of notoriety. People are always more interested in Health and Fitness. Water improved the appearance of skin, gives more energy and water is important for health. De Melo J. (2012, November 20).
  • 6. INTRODUCTION TO MARKETING BUSINESS PLAN 6 The retail sale of bottled water accounts for about 88% of the bottled water market, and is the largest and fastest growing segment of the United States bottled water industry. Consumers generally purchase bottled water in convenient 2 ½ gallon, 1 gallon and smaller sizes – including familiar 16.9 ounce half liter bottles through grocery, club convenience stores and supermarkets and vending machines. International Water Bottled Association. (IBWA). (2014) The home and office delivery portion of bottled water industry accounts for 12% of the bottled water markets. These services involve delivery of three, four, and five-gallon bottles used with water coolers. The segment of the bottled water market has been providing customer s with the safe, quality products for over one-hundred years in the US. Marketing and its relationship with other functional areas of business The vast majority of companies that are in the bottled water markets are small, locally- owned companies, with 60% reporting less than 2 million in annual gross sales and 90% reporting less than 10 million in annual gross sales. These are local family entrepreneurs with deep roots and strong ties with in the communities. International Water Bottled Association. (IBWA). (2014). BMC also notes that research shows consumers most often tend to buy bottled water in bulk from supermarkets or large discount retailers as they often prefer to purchase bottled water in cost-saving volume. International Water Bottled Association. (IBWA). (2014). BMC also notes that research shows consumers most often tend to buy bottled water in bulk from supermarkets or large discount retailers as they often prefer to purchase bottled water in cost- saving volume. International Water Bottled Association. (IBWA). (2014).
  • 7. INTRODUCTION TO MARKETING BUSINESS PLAN 7 Strategic Marketing Planning Process Since 2001, Americans have increased their annual per capita consumption of bottled water by more than 12 gallons. The continued increase per capita consumption indicates that customers see bottled water as a healthy alternative to other packaged beverages. Consistent with this view, sales revenues for the U.S. bottled water market in 2013 were 12.3 billion in wholesale dollars, a 4.0% increase over the previous year. International Water Bottled Association (IBWA). (2014). Differentiation based price based marketing strategy a business that opted for the price route in its competitive battle with enjoy certain flexibilities in matter of its product and used as main competitive level. We will price products to suit the varying competitive demands and it will enjoy cost advantages, which permits it to resort a price based fight. Kumar, N. (2004-06). If the marketer understands consumer needs; develops products and services that provide superior customer value; and prices, distributes, and promotes them effectively, these products will sell easily. Armstrong, G. & Kotler, P. (2009) Today for any business organization to be successful, it has to provide its customer with the differentiated product that is a value buy for them. In order to cater to the changing needs of the customer the business has to continuously come out with the variants of the products so that it can target the maximum segments. Since 2001, Americans have increased their annual per capita consumption of bottled water by more than 12 gallons. The continued increase per capita consumption indicates that customers see bottled water as a healthy alternative to other packaged beverages. Consistent with this view,
  • 8. INTRODUCTION TO MARKETING BUSINESS PLAN 8 sales revenues for the U.S. bottled water market in 2013 were 12.3 billion in wholesale dollars, a 4.0% increase over the previous year. International Water Bottled Association (IBWA). (2014). Strategy Organizational Levels Natural Springs Granite Filtered Bottled Water Company is dedicated to long-term bottle water markets. It will not accept short-term financial gains, as long term is the ultimate goal. We want to be around for hundreds of years as a well-known company that stands behind the company and its product. To do so we have to think of long term goals only. We have a companywide marketing meeting once a month with all department heads to confirm that all departments are doing their part to assist with the marketing strategies set forth for the future advertising campaigns. The departments heads will relay information to the rest of their departments and ensure they are all informed as well. We have a suggestion box for anybody that has any marketing ideas or strategies they want to share with the marketing team and every suggestion will be thoroughly reviewed and response giving to the person that submitted the idea. Higher management, for approval before implemented in the marketing or advertising campaign, will review everything done at the meeting. Goals and Objectives Natural Spring Granite Filtered Bottled Water Company will sub-contracting out a share of the profits of the business to distributer, for return on using their distribution, process. They get a quarter of the profits in the event that our overhead was meat first. Of course, the third party company will have no rights to the actual making of our product and whom we chose as a retailer to sell it.
  • 9. INTRODUCTION TO MARKETING BUSINESS PLAN 9 We will start with just NH for now but plan on expanding too many more states with in the first year. If the company is taking off and sales are up with company making money then we will expand to the rest of the United States within 5 years and move to international sales within 10 years. Planning Gap Ethics in Marketing Natural Spring Granite Filtered Bottled Water Company is actively adding value to our organization and customers. We will adhere to all applicable laws and regulations and embodying high ethical standards in our choices. We will properly advertise all products for their intended and promoted uses. We will embrace, communicate, and practice the fundamental ethical values that will improve consumer confidence and comply with all government regulations and environmentally safe standards. These basic values are intentionally aspirational and include honesty, responsibility, fairness, and respect. Market Research & Targeting Market Research Research Methods & Data Mining One research method used is the online survey, see the survey attached separately. Another research method would be data mining. Data mining would be investigating past sales of the company to see about markets in the past that the company might have sold too like military, medical facilities, and schools, etc. Marketing Research Process
  • 10. INTRODUCTION TO MARKETING BUSINESS PLAN 10 Problem: The vast majority of bottled water companies in the U.S. are small community based companies using local water sources to distribute their products with in an average radius of 300 miles from their bottling facilities. International Water Bottled Association (IBWA). (2014). Opportunity: Be the first company to offer bottled water through out many east coast states and move on the whole United States in the near future. Using a third party distributor for 25% of profits after overhead is meet will gain the access to the trucks and facilities needed to gain more territory. Since the third party distributor has steak in the wellbeing of the company that will ensure they keep up the standards and practices equal to the Natural Spring Bottle Water Companies are. Objectives: We are going to put out a survey that will ask about out buy three get 1 fee of our 24 bottle case of 20 oz. bottled water For the price of only 9.99. This will allow us to do the research needed to see if sales went up because of the coupon and what age, gender, number of people in household or family. Budget: We will used 10 percent in our promotional grand opening for advertisements on TV commercials and online pop up ads. Some will also go to the on line survey being conducted to get more research on how our promotions are doing after the fact. After the initial budget of 10 percent, it will go down to the standard 3 percent of total budget on advertising. Time Table: We are going to put our discounts online and coupons out in ads just after Christmas. This is when people are making New Year’s resolutions to lose weight and get healthy again after the holidays. Water is a big part of that type of heathy lifestyle that people will be back in the mood for come the first of the New Year.
  • 11. INTRODUCTION TO MARKETING BUSINESS PLAN 11 Primary Research: See attachment of example of Survey. Secondary Research: Sales of bottled water grew nearly 7 percent between 2011 and 2012, with consumption reaching a staggering 30.8 gallons per person. Gleick P. (2013, April 25). Gleick, P. (2013, April 25) In addition, we have the market of the Home Delivery Cooler Refill side of the business to keep going in our local market but to also expand our great tasting spring water to even more communities. We are going to expand that coverage to more big cities and these first two expansion cities are going to be metropolitan areas that have our billboard advertisement just before entering the city. Design Research Instruments: You can see that my survey does follow the guidelines set by the Argosy classroom test This information is from the Argosy Online Marketing Principles M2 A2 (n.d.).  Keep it brief and simple  Provide instructions for answering questions.
  • 12. INTRODUCTION TO MARKETING BUSINESS PLAN 12  Graphics are pleasing and easy to read.  Close Ended Questions – Used multiple choice.  Open Ended Questions – Asked to leave a brief comment in own words. Collecting Data US Census Bureau. (2014, August) Beverage Industry Magazine. (2014, July). 2.6 3.4 3.6 5.1 5.7 6.1 6.8 6.5 6.4 6.4 5.4 0 1 2 3 4 5 6 7 8 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 U.S.BillionDollars Year of Product Shipment Values of Bottle Water U.S. productshipmentvalue of bottled water 1.9 0.92 0.9 0.86 0.58 0.6 0.53 0.41 0.32 0.25 0 0.2 0.4 0.6 0.8 1 1.2 1.4 1.6 1.8 2 Private Lable Dasani Nestle Water Pure Life Aquafina Poland Spring Glaceau Smart Water Glaceau Vitamin Water Dear Park Ozarka Fiji U.S.BillionDollars Name of top 10 companies 2014 Leading bottled still water brand sales in the U.S., 2014
  • 13. INTRODUCTION TO MARKETING BUSINESS PLAN 13 Beverage Industry Magazine. (2014, January). Organize and Analyze Data information was also retrieved from the Argosy Online Marketing Principles M2 A2 (n.d.).  Sift for data relevant to your immediate market needs.  Use subjective information only to support the general findings of objective information.  Check for consistency of data. For example, do the customer demographics provided by the local city office agree with your survey results?  Quantify results by grouping all similar responses.  Try combining data from different sources to obtain additional information that may be of use now or later.  Present and Apply Marketing Research Findings. With all of the research done on the bottled water industry, Natural Spring Bottled Water Company will merchandise some mass merchandiser or club stores, for example, Costco and 45.30% 28.50% 5.70% 3.50% 17% Mass Merchandisers / Club Stores Grocery Stores Convenience Stores Drug Stores Vending/Food Service/Other Sales 0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 35.00% 40.00% 45.00% 50.00% DisterbutionChannels Percent of Sales Shareof bottled water sales in United States in 2012 by distribution channel.
  • 14. INTRODUCTION TO MARKETING BUSINESS PLAN 14 Wall Mart. In Addition, to satisfy the needs to get product out to the major grocery’s stores, for example, Safeway, Savemart, and Pack-n-Save would be a few to mention. Since these are the top selling markets per research, we start out with these two distribution channels for our retail side. To get the Natural Spring Bottled Water name into the home of the consumers we are going to have our product launch just after Christmas with the design of our company logo on each bottle sold to create the initial brand awareness you need. We have a marketing campaign on mass media for example TV, Online, and even some Internet surfers that we hired to get our name in the social media. We have also purchased some advertisements next to the casino billboards to ensure that all people that are driving to the casino will also see our product launch. The last this would be to pass out business cards. Word of mouth is always a big source of advertising. The home and office delivery portion of the bottled water industry accounts for about 12% of the bottled water market. These services involve delivery of three to four five-gallon bottles used with water coolers. This segment of the bottled water market has been providing consumers with safe quality products for over one hundred years in the U.S. Bottled Water Industry: Home and Office Delivery (n.d.). Consumer Behavior B2C vs. B2B Consumer purchases are influenced strongly by culture, personal and psychological characteristics according to Armstrong, G., & Kotler, P. in 2009 when they wrote the Ninth Edition Marketing, An Introduction.
  • 15. INTRODUCTION TO MARKETING BUSINESS PLAN 15 For culture, marketers need to spot cultural Shifts in order to discover new products that might be wanted. Under culture, we have Subcultures or groups of people that shared value systems based on common life experiences and saturations. Subcultures also include nationalities, religions, racial groups, and geographic regions. National Spring Bottled Water Company will try to pick one of these categories to assign to part of the marketing team to target that specific type of customer to sell our water. Last, we have social class, which is measured by a combination of occupation, income, education, wealth, and other variables. In addition, Armstrong, G., & Kotler, P. (2009) had this to say about the business buyer’s side of behavior. Business Buyers usually face more complex buying decisions that do consumer buyers. Purchased often involve large sums of money, complex technical and economic considerations, and interactions among many people at many Levels of the buyer’s organization. The business buyers need more time to make decisions. The process also tends to be more formalized then the consumer buying process. Large business purchases usually call for detailed product specifications, written purchase orders, and carful supplier searches and formal approval. Consumer Decision Making Process “The key objectives are to get customers to buy your product and then retain your customers. At the planning stage, organizations usually divide their product offer into several small manageable chunks”. Armstrong, G., & Kotler, P. in (2009).
  • 16. INTRODUCTION TO MARKETING BUSINESS PLAN 16 “When identifying a set of possibilities to satisfy the need, the customer evaluates each option according to specific criteria and the evaluation criteria may consist of price, ease of availability, or relative benefits of certain choices”. Armstrong, G., & Kotler, P. in (2009). The final purchase usually involves the customer interacting with an array of influencing factors. Post purchase, the customer forms opinions about the product, opinions that influence future purchase decisions. As a result, making a simple purchase decision involves complex iterative processes, a host of influencing factors, and several decision criteria. Armstrong, G., & Kotler, P. in (2009). Factors Affecting B2C and B2B Consumer Behavior Understanding customer behavior involves studying how an individual interacts with the marketing mix and the 4Ps of price, place, promotion, and product. Argosy University Classroom. Principles of Marketing (n.d.). The evaluation criteria may consist of price, ease of availability, or relative benefits of certain choices. Argosy University Classroom. Principles of Marketing (n.d.). Each customer's consideration for an offer is influenced by factors such as culture, attitude, previous learning, and personal perception. Using these factors, the customer decides to buy or not, what brand to buy and where to buy that brand from”. Argosy University Classroom. Principles of Marketing (n.d.). An organizations buy activity consists of two parts. First, the buying center that is made up of all the people involved in the buying decision, and the buying decision process. The buying center and the buying decision process are influenced by internal organizational, interpersonal, and individual factors as well as by external environmental factors. Armstrong, G., & Kotler, P. in (2009).
  • 17. INTRODUCTION TO MARKETING BUSINESS PLAN 17 Environmental factors are level of primary demand, economic outlook, and the cost of money. In addition, shortage of key material, many companies now are more willing to buy and hold larger inventories of scarce materials to ensure adequate supply. Organizational Factors would be the buying organizations own regulations, objectives, policies, etc. The marketer must understand the buyer limitations and who they are and how many of them would be involved in the buying decision. Armstrong, G., & Kotler, P. in (2009). Interpersonal factors are how the buying decision group of people influences each other and how the process makes influences these people individually and as a group. Each participant in the business buying decision process brings in personal motives, perception, and preferences”. Armstrong, G., & Kotler, P. (2009). Market Segmentation Market Segmentation Concepts Market Segmentation involves dividing a market into smaller groups of buyers with distinct needs, characteristics, or behaviors that might require separate marketing strategies or mixes. Armstrong, G., & Kotler, P. (2009). For the Natural Spring Bottled Water Company, we have chosen to segment markets based on Family Life Cycle. We are going to market to the family that has young children with the spill proof tops that can make it easy to give a child a water without spilling in the car even if they drop it. This will also include a marketing to the Young mother that might be still trying to get over having the baby with in the past five or so years advertising the value of water in person’s body and how good our Natural Spring Water tastes compared to the filtered bottle waters on the market. The man that works manual labor in construction all day needs to keep rehydrated while working would never go to the job site without his daily consumptions of
  • 18. INTRODUCTION TO MARKETING BUSINESS PLAN 18 natural spring water to quench his thirst and natural minerals the body loses while sweating out the day. This family does not have to be any certain age group just with younger children so we will not be leaving any one out age wise. The kids will like the spill proof tops as much as the parents do and the husband will buy because his wife will put in lunches until he is use to making sure he gets the correct brand if he goes to the store. Segmentation Process Markets consist of buyers, and buyers differ in one or more ways. They may differ in their wants, resources, locations, buying attitudes, and buying practices. Through market segmentation, companies divide large, heterogeneous markets into smaller segments that can be reached more efficiently and effectively with products and services that match their unique needs. Armstrong, G., & Kotler, P. (2009). For the Natural Spring Bottled Water Company, we have chosen to segment markets based on Family Life Cycle. This would be a family that has young children. We can break down that market to targeting to three branches, which is the Mother, Kids, and Father or parents together. This family does not have to be any certain age group just with younger children so we will not be leaving any one out age wise. The kids will like the spill proof tops as much as the parents do and the husband will buy because of the replenishment of the bodies need for hydration. Segmentation Strategies The four major segmentation variables for consumer markets are geographic, demographic, psychographics, and behavioral. Demographic has to do with the world regions, which would not apply to this business plan because it will only be in U.S. markets for now. Demographic would include, age, gender, family size and family life cycle, Income, occupation,
  • 19. INTRODUCTION TO MARKETING BUSINESS PLAN 19 religion, education, race, generation and nationality. Psychographics is social class, lifestyle, and personality. Last, the Behavioral consists of occasions, benefits, user status, user rates, loyalty status, readiness stage, attitude toward product. Armstrong, G., & Kotler, P. (2009). Target Marketing Target marketing consists of evaluating each market segment’s attractiveness and selecting one or more market segments to enter. Armstrong, G., & Kotler, P. (2009). The Natural Spring Granite Filtered Bottled Water Company is will be targeting females (mostly Caucasian) between the ages of 26 to 46 of age with children. There are over 100 million women strong in America and they are well in tuned with maintaining their family health and wellness. They are well-educated, professional career minded and have significate purchasing power since they make an average of 60,000 a year. They are environmentally friendly and have established traditional routines centered on home and family. These women have a strong sense of responsibility with in the community but will take advantage of opportunities for personal growth. Advertising the value of water in person’s body and how good our Natural Spring Granite Filtered Spring Water tastes compared to the filtered bottle waters on the market. Our discounts and promotions will appeal to the cost side of our water with middle class families. Do not forget to market are ecofriendly bottles that we use for our water. We are an eco-friendly company and everyone can appreciate that to stand behind out product and our environment. The Product Product Levels Researching product levels, Kotler has updated the three level model to a five level model that will be used for this business plan so we have the most current information available
  • 20. INTRODUCTION TO MARKETING BUSINESS PLAN 20 to market our natural spring water. The five product levels are, core benefit, basic product, expected product, augmented product, and the potential product. Raab, M. (2010, November 13). Core Benefit - “The most basic level is the core customer value, which addresses the question: What is the buyer really buying? When designing products, marketers must first define the core, problem-solving benefits or services that consumers seek.” Armstrong, G., & Kotler, P. (2011). Naturally-mineral rich crystal clear granite filtered spring water is sourced from natural springs that were made by nature and the water comes from a 40-feet-think to 90-feet-thick clay and granite layers deep below the ground, protecting it from any man-made pollution. Natural Springs granite filtered spring water contains no nitrates; it is naturally free of chemicals. Nicolet Water Quality: Fresh From The Forest. (2014). After water is collected at the springs in NH, it undergoes stringent controls to ensure each drop has been screened for 30x more contaminants than the leading pitcher filter removes. Our testing standards exceed the standards set by the EPA and the FDA. Poland Spring® 100% Natural Spring Water (n.d.). We seal every drop of our natural mineral-rich crystal clear granite filtered spring water in specially designed bottles that are recyclable, regularly tested for safety, and free of BPA* (bisphenol-A) Poland Spring® 100% Natural Spring Water. (n.d.). Basic product – The Marketer has to turn the core benefit to into the basic product. Raab, M. (2010, November 13). The basic product that might satisfy the inner needs of the consumer. On this stage, the product only contains those values that are very necessary for it to function. Koszegi-Nagy, Z. (2014, March 31).
  • 21. INTRODUCTION TO MARKETING BUSINESS PLAN 21 Water is a necessity for every human being to survive. Water helps the body function properly by removing waist products, maintaining physical endurance in adults and transports nutrients to cells. Water is a major component of blood. Water also keeps the body at the correct temperature. Expected product – the properties that the product has and that are necessary for the consumer to think about buying the product. Koszegi-Nagy, Z. (2014, March 31). On average, calories in beverages make up 20% of the total caloric intake in the typical American diet. Replacing one sugared beverage per day with water for a year can trim more than 50,000 calories annually from your diet. Drinking water is a good way to stay hydrated without consuming calories. Beverage Consumption & Sales. (n.d.). The 5oz Spill proof caps will targeted towards the parents whether a family or single parent home. This option appeals to the parents because water is a healthy alternative to the sugary juices and sodas for the whole family. Potential product – it is the final product that is available on the market and that the consumers can buy. This includes all the additional values and augmentations that the company finally included in the product to differentiate it from the competitors’ products. Koszegi-Nagy, Z. (2014, March 31). Natural Spring Granite Filtered Water Bottle Company will offer an assortment of options for purchase to the consumer. The most recent added is the six pack of 5-ounce children size waters that all have the spill proof caps. We will also offer the 12 oz. or the 1-liter bottle with the option of the sport top for adults that can be sold in singles or the cases of 12 and 24. Do not forget about the 3-gallon and 5 gallon Home Delivery or order for the Home Delivery for water cooler.
  • 22. INTRODUCTION TO MARKETING BUSINESS PLAN 22 Augmented product – Attributes of the product that can differentiate it from the competitors’ products and might provide a slight advantage over them for the consumers. These may include the brand name, the design, the packaging, the overall quality, the additional functions (apart from the basic features), the installation, the after-sale service, the warranty, the home delivery, and the possibility to accept credit from the consumers. Koszegi-Nagy, Z. (2014, March 31). Our Brands – Natural Spring Bottled Water Co. is a top performer and our significant investments in our people, facilities, and technology have enabled high-speed manufacturing practices, high-quality products and a low-cost distribution system. Beverage Consumption & Sales. (n.d.). Recycle - We are committed to recycling in our own operations. We are taking steps to reduce the amount of materials we use in every phase of our operations — from the plastic we use in our bottles right down to making sure that we are recycling materials at our in-plant facilities. Through improvements in our in-plant recycling process, in 2009 we were able to recycle 95% of the product waste generated at these facilities. In addition, in some of our administrative offices, we have composting systems in place to also minimize food waste. Beverage Consumption & Sales. (n.d.). We are working to get the Extended Producer Responsibility solution to improving recycling rates, which leads to: Reducing energy and raw materials cost, reducing greenhouse gas emissions, reducing the impact of bottled water and other packaged goods production, and creating more jobs. Beverage Consumption & Sales. (n.d.).
  • 23. INTRODUCTION TO MARKETING BUSINESS PLAN 23 Product Life Cycle Introduction Stage – Need to educate customers regarding the benefits of the product. Focus on the product rather than the brand. Promotional offers to support the product and build demand. The pricing strategies, price skimming and price penetration. Argosy University Classroom. Principles of Marketing (n.d.). Naturally-mineral rich crystal clear granite filtered spring water is sourced from natural springs that were made by nature and the water comes from a 40-feet-think to 90-feet-thick clay and granite layers deep below the ground, protecting it from any man-made pollution. Natural Springs granite filtered spring water contains no nitrates; it is naturally free of chemicals. Nicolet Water Quality: Fresh From The Forest. (2014). After water is collected at the springs in NH, it undergoes stringent controls to ensure each drop has been screened for 30x more contaminants than the leading pitcher filter removes. Our testing standards exceed the standards set by the EPA and the FDA. Poland Spring® 100% Natural Spring Water (n.d.). We seal every drop of our natural mineral-rich crystal clear granite filtered spring water in specially designed bottles that are recyclable, regularly tested for safety, and free of BPA* (bisphenol-A) Poland Spring® 100% Natural Spring Water. (n.d.). Introduction Stage Pricing Strategy Price Skimming involves setting a high price to recover the development costs as soon as possible. Argosy University Classroom. Principles of Marketing (n.d.). Price Penetration involves setting a low price to discourage competitors from entering the market. A low introductory price helps to increase demand for the product allowing the
  • 24. INTRODUCTION TO MARKETING BUSINESS PLAN 24 organization to take advantage of economies of scale. Argosy University Classroom. Principles of Marketing (n.d.). Since we are entering a market that has many competitors, already we are going to enter the market with the best quality brand of water from the best sources and least eco waist for the lowest price. Not many competitors have the granite filtered spring water as a brand for quality for the same prices that would be charged for purified or filtered local water resources. Growth is a period of rapid market acceptance and increasing profits. Armstrong, G., & Kotler, P. (n.d.). We will continue to market to our family theme with our quality water and spill proof caps with the 5oz kids size bottle. In addition, the parents looking to be healthier and stay fit will need sport bottle caps for the workouts or sports activities. Maturity is a period of slowdown in sales growth because the product has achieved acceptance by most potential buyers. Profits level off or decline because of increased marketing outlays to defend the product against competition. Armstrong, G., & Kotler, P. (n.d.). This is when we will launch the home delivery side of the business investing in more of our own distribution channels to delivery water and coolers to people that want our great tasting water in their home. Offering a promotion for first time customers discounts off cooler prices and some water free if purchased more than three of the 5-gallon waters each month. This will help boost sales when the initial launch has started to level out and stop increasing starting the decline stage. Decline stage is the decrease in demand and sharp decrease in sales. Marketer needs to eliminate product or reposition it to extend the life. With the need for water for all human beings
  • 25. INTRODUCTION TO MARKETING BUSINESS PLAN 25 if we can capture just a small percentage of the market, we can make a profit and the product would not go into the decline stage and last many years. BCG Model Here is what was said about the Boston Consulting Group strategies in a journal entry edited by Crumley, C. R. (2007).  Being number one or number two in business is a necessity.  The prevailing management practices in diversified companies should be scrapped and replaced with a real portfolio management.  Competitive strength comes from strategic intent along with macroeconomics and culture.  Beating the competition is more important than beating the last quarter.  Cash flow is pivotal in determining a business's real rate of return.  Regulation can have a devastating effect on market mechanism Services Marketing “External Marketing is the traditional marketing of the Four Ps.” Armstrong, G., & Kotler, P. (n.d.). “Internal Marketing means that the service firm must orient and motivate its customer-contact employees and supporting service people to work as a team to provide customer satisfaction. Marketers must get everyone in the organization to be customer centered.” Armstrong, G., & Kotler, P. (n.d.). “Interactive Marketing means that service quality depends heavily on the quality of the buyer-seller interaction during the service encounter. In product marketing, product quality often depends little on how the product is obtained. Nevertheless, in services marketing, service
  • 26. INTRODUCTION TO MARKETING BUSINESS PLAN 26 quality depends on both the service deliverer and the quality of the delivery. Service marketers, therefore, must master interactive marketing skills.” Armstrong, G., & Kotler, P. (n.d.). Home/Office Delivery We will need to train quality, knowledgeable, and reliable customer service reps and delivery drivers by developing a superior physical environment that our product will be delivered. By using our own distribution system for the Home Delivery portion of our business, we can design a superior delivery process. . Making sure that our dispatch schedule has extra time in case one delivery takes longer than expected so the next customer will not be effected by it. Always have the phones answered by a person and not a recording during business hours will assist with differentiating our service from our competitors. NONE Price Determination and Strategies Price is the sum of all the values that customers give up in order to gain the benefits of having or using a product or service. Historically, price has been the major factor affecting buyer choice. In recent decades, nonprime factors have gained increasing importance. However, price remains one of the most important elements determining a firm’s market share and profitability. Home Delivery Pricing - A survey of the surrounding are in New Hampshire shows that the average price per 5-gallon bottled delivered is $ 6.80. Reference for Business. (1995, April). Since we are trying to compete in this market with many competitors by giving the quality water at the lowest price so we are going to charge only $6.00 per 5-gallon delivered bottle water. Water, bottle, and delivery cost comes to $3.00 per 5-gallon bottle delivered. Charging the customer $6.00 per 5-gallon delivered bottle generates $3.00 in profit per unit for the company.
  • 27. INTRODUCTION TO MARKETING BUSINESS PLAN 27 A survey in the sourunding area of New Hampshire states that the average price per 3- gallon delivered bottle of water is $ 2.10 per 3-gallon delivered bottle of water. Reference for Business. (1995, April). We are going to charge $4.50 per 3-gallon delivered bottle generates $2.40 in profit per unit for the company. We are going to purchase coolers at a cost of $302.00 and rent them to the customers for a fee of 15.00 per month. In just 21 months, each rented cooler will be paid for and generating profit long-term for the company. Reference for Business. (1995, April). Supply & Demand “Building on last year’s growth of 4.7 percent, bottled water will again post significant increases in both sales and consumption for 2014. Reflecting a clear trend of consumers increasingly choosing healthy, convenient, zero-calorie bottled water, BMC reported that over the past five years alone, bottled water has increased its share of the overall beverage market from 14.4 percent in 2009, to 17.8 percent in 2014. BMC now predicts that by 2016 bottled water will be the number one packaged beverage sold in the United States.” Bottled Water. (2014, December 04). “Sales of bottled water are expected to enjoy moderate growth over the forecast period. Off-trade value sales of bottled water are projected to grow by 11% between 2013 and 2018 to reach US $20.1 billion. Off-trade volume sales of bottled water are also projected to increase by 11% to reach 33.1 billion liters over the same time. The healthful profile of most bottled waters gives consumers a reason to purchase bottled water over other soft drinks.” Bottled Water. (2014, December 04).
  • 28. INTRODUCTION TO MARKETING BUSINESS PLAN 28 Gleick, P. (2013, April 25). Competition Beverage Industry Magazine. (2014, January). Objectives and Strategies 1.9 0.92 0.9 0.86 0.58 0.6 0.53 0.41 0.32 0.25 0 0.2 0.4 0.6 0.8 1 1.2 1.4 1.6 1.8 2 Private Lable Dasani Nestle Water Pure Life Aquafina Poland Spring Glaceau Smart Water Glaceau Vitamin Water Dear Park Ozarka Fiji U.S.BillionDollars Name of top 10 companies 2014 Leading bottled still water brand sales in the U.S., 2014
  • 29. INTRODUCTION TO MARKETING BUSINESS PLAN 29 We are going to offer the customer a 30 day free trial of our water coolers to the the customser use to having the cooler nearby. Once the cooler is in place, most customer fine it easier to leave the cooler and order more products or water deliveries to keep the water stocked. After two weeks of the 30-day free trial, we will call customer and provide them with other incentives to keep the water cooler and commit to a rental agreement. We will call the customer after the two 5-gallon bottles are mostly emptied and offer the incentive may involve free bottles of water or a reduced fee for water. Reference for Business. (1995, April). The cost to deliver and place the cooler is minimal, by comparison to the advantage of having a customer essentially locked in to having water delivered by the same company that is renting the cooler to them. Reference for Business. (1995, April). Natural Spring Granite Filtered Bottled Water Company intends to advertise its free trial offers by way of website online, coupons, social media, and word of mouth. Most competitors do not currently invest in advertising, leaving the market wide open. Reference for Business. (1995, April). Place & Promotion Distribution Channels “A company’s channel decisions directly affect every other marketing decision. Pricing depends on whether the company works with national discount chains, uses high-quality specialty stores, or sells directly to consumers via the Web. The firm’s sales force and communications decisions depend on how much persuasion, training, motivation, and support its channel partners need.” Armstrong, G., & Kotler, P. (2011). Integration of channels offline and online strategies are most preferable for multi-channel retailing. Other studies find this as an assumption because retailers are choosing a verity of disparate multi-channel strategies. Müller-Lankenau, C., Wehmeyer, K.,& Klein, S. (2006). Given this variety, we conjecture that there is no single best approach to multi-channel retailing, but
  • 30. INTRODUCTION TO MARKETING BUSINESS PLAN 30 that, depending on the general marketing strategy, different multi-channel strategies can be suitable for retailers. Müller-Lankenau, C., Wehmeyer, K.,& Klein, S. (2006). Direct and Indirect Marketing Direct Marketing has no intermediate levels and the company will sell directly to consumers. Armstrong, G., & Kotler, P. (2011). Although distributors preferred direct channels, market coverage was also important. This is because direct channels could act as a barrier. These channels avoided horizontal expansion and exerted pressure on distributor’s distribution assets and core business specialization. Ouma, D., Ombui, K., & Kagiri, W. A. (2013). Indirect Marketing has on or more intermediaries. Armstrong, G., & Kotler, P. (2011). Length & Width Length - The number of intermediary levels indicates the length of a channel. Armstrong, G., & Kotler, P. (2011). Width - Width of a channel is equal to the number of options used by a company to distribute its products. Argosy University Classroom, Principles of Marketing (n.d.). The Natural Springs Granite filtered water is going to use an indirect marketing channel, which will include distributors and wholesalers. We are going to have a third party distributor for our retail side of the campaign to get the water from our bottling facility in New Hampshire to the retail stores for sale to the consumer. On the retail side of our water business, we are going to sell our water through drug stores and grocers stores, for, example Rite Aid, Wall Mart, Safeway, and Save Mart to name a
  • 31. INTRODUCTION TO MARKETING BUSINESS PLAN 31 few. We are also going to include corner markets, liquor stores, and mom and pop stores located in smaller cities. This is because we have an unlimited supply of water from our granite mountain in New Hampshire. For our Home Delivery and Business Delivery service, we are going to use a direct marketing channel. They will not only be the home delivery to consumers but we can utilize the distribution to service our vending machines in the area. This will be our own drivers, deliveryman, trucks, and sells to customers directly with no intermediate company involved. Vertical & Horizontal Channel Conflict Vertical Channel Conflict - Conflicts between different levels of the same channel, is even more common. Armstrong, G., & Kotler, P. (2011). Selecting channels would include distributors, retailers, franchisees, distribution, and a sales force. Selecting channels also involves making decisions about market coverage, vertical systems, multichannel network, strategic alliances, and a sales force. Ouma, D., Ombui, K., & Kagiri, W. A. (2013). Horizontal Channel Conflict - Two or more companies at one level join together to follow a new marketing opportunity. By working together, companies can combine their financial, production, or marketing resources to accomplish more than any one company could alone. Armstrong, G., & Kotler, P. (2011). Although distributors preferred direct channels, market coverage was also important. This is because direct channels could act as a barrier. These channels avoided horizontal expansion and exerted pressure on distributor’s distribution assets and core business specialization. Ouma, D., Ombui, K., & Kagiri, W. A. (2013).
  • 32. INTRODUCTION TO MARKETING BUSINESS PLAN 32 Promotion Communication Process & Tools “Retailers use any or all of the promotion tools—advertising, personal selling, sales promotion, public relations, and direct marketing—to reach consumers.” Armstrong, G., & Kotler, P. (2011). Our target market is the young family wanting healthier choices for the children and alternative to the sugar drinks. Also good alternative to tap water that has many bad chemicals and sewage that was into our water systems. With every purchase of the a case of 12oz bottles we can promote or coupon a promotion to get a free 5oz six pack of the spill proof caps to market these for parents with small children on the go. We can also offer one time free water container with cap on first purchase of the bottled 3-gallon and 5-gallon refillable containers if purchased more than three of any combination of sizes. We will offer these promotions in weekly mailed ads and out our website. For the Social Media promotion, we can have a promo code for the same promotions offered in the stores and add additional promotion codes for discounts on products and or free shipping of products with certain purchases. The social media ads and television ads are going to be specific towards the quality of our brand. It will be all about the natural spring water is pure and really comes from the NH springs. Informing consumers that we are our own company and our core standards are to give the best prices for the healthiest water on the market. Advantages with using advertising as the main tool are the ability to get our brand and name out to a large number of people at low cost. “Communication can be encoded and
  • 33. INTRODUCTION TO MARKETING BUSINESS PLAN 33 delivered via multiple media, like visual and verbal encoding for television and magazines.” Argosy University Classroom. Principles of Marketing (n.d.). Disadvantages to using advertising are that the communication mode is indirect and impersonal and is sent to various markets and not customized to one pacific market. University Classroom. Principles of Marketing (n.d.). Sales promotions are an advantage because it provides incentives as invitation to purchase which is highly persuasive. Argosy University Classroom. Principles of Marketing (n.d.). Disadvantage to sales promotions is the communication is usually indirect and impersonal and the effect is usually short-term only. Argosy University Classroom. Principles of Marketing (n.d.). Product Life Cycle and Pricing/Promotion Introduction Stage Since we are entering a market that has many competitors, already we are going to enter the market with the best quality brand of water from the best sources and least eco waist for the lowest price. Not many competitors have the granite filtered spring water as a brand for quality for the same prices that would be charged for purified or filtered local water resources. We are going to charge only $6.00 per 5-gallon delivered bottle water. Water, bottle, and delivery cost comes to $3.00 per 5-gallon bottle delivered. Charging the customer $6.00 per 5- gallon delivered bottle generates $3.00 in profit per unit for the company. Of course, if needed in other stages of the life cycle we need more money we could make this promotional offer for just the first year and then the price can go up one to two dollars more per unit.
  • 34. INTRODUCTION TO MARKETING BUSINESS PLAN 34 We are going to purchase coolers at a cost of $302.00 and rent them to the customers for a fee of 15.00 per month. In just 21 months, each rented cooler will be paid for and generating profit long-term for the company. Reference for Business. (1995, April). Growth Stage For the Growth Stages we might have to lower prices when competitors come out with more products like ours for the retail side, which includes our cases of 12oz and 24oz, bottled water in the 12oz size bottles for only 7.99 per case and out 20oz bottles for only 9.99 per case. This will keep us at an advantage of the competition during the growth stage. Maturity Stage Maturity Stage we will already be a house hold name for the great taste and healthy benefits of our water. We would not need any promotions or coupons at this time most consumers are familiar with Granite filtered Water quality and willing to pay for the excellent taste. It will be the new trend and with our prices, no one will be able to compete so we will still be making profits. Decline Stage Decline stage is not going to happen with bottled water because it is every persons need to consumer water. Without tab water, getting worse every day more people will be paying for good natural water. We might see that the market will level off but we will never have to close up shop this company should be around forever if we market the product correctly.
  • 35. INTRODUCTION TO MARKETING BUSINESS PLAN 35 Promotional Strategies Push is going to be our first strategy using the promotions that we discussed we are hoping that the demand for our water will be so high that consumers will ask for it because of our coupons and promotional offers during the introductory stage. The last methods we are using will the fear factor. Giving all of the bad things in Tap water and the fact that you cannot take out all of the pesticides, chemicals, and much more from municipal sources of water, this will make customers think they need to have the best water for their body. This will force the product with the other incentives we have like money back guarantee if do not like water once tasted when purchasing the single 12oz or 20oz bottles. We will also match any competitors prices if found lower than ours did if you bring in the advertisement to show us. Last for the Home Delivery we can do a 30 day trial money back guarantee if decide after 30 days you think our product is not what you desire in your home for any reason. Personal Selling & Global Markets Promotion Mix Advertising The Natural Springs Granite Filtered Water Bottle Company does recognize the different media options available to use for the marketing plan. For example, TV, magazines, internet, radio, newspapers, billboards or banners. Marketing department has chosen the following media outlets for this campaign. Television is the first media we choose and is going to be the most expensive. We are going to run commercials for our ads during NFL football games on Thursdays nights. Thursday night games are televised but have less people watching on TV for the cost is less expensive and
  • 36. INTRODUCTION TO MARKETING BUSINESS PLAN 36 we still reach the million customers that may be watching the game. These potential customers are used to being in the sports type of atmosphere and or could be athletes themselves so being hydrated is important to this targeted market. Internet is the second media we choose. We will have an extensive website built for our B2C & B2B customers to enjoy all of the promotions that we will list for online purchases. It will give the back ground about where are water comes from and a comparison against municipal water sources in regards to how healthy and safe our product is with our guarantees. It will also show how economical we are with our production of the water and how safe are bottles that we put our water into are and the impact of our bottling facility would have on the environment. We will also have hours listed to do an online chat on the website so a customer service rep can answer all questions in real time as the customer is shopping through our products, especially with the B2C customer that want to start the Home Delivery including water cooler rental with us. Website/Survey will offer a promo code for a coupon for after completing the survey so we can get some feedback about our adds so far and make adjustments where needed for future changes in the campaign. Social Media / Internet Surfers – we will have a few employees designated to advertising our water on the social networking sites, blogs, and any internet type of exposure we can get our brand out to the public. Billboard advertisement is the last option. The billboards are going to be next to other advertisements for casinos, which will ensure more people will see our ads since the people driving the route to casino, every day will also see our billboard adds. Personal Selling
  • 37. INTRODUCTION TO MARKETING BUSINESS PLAN 37 “Personal selling consists of interpersonal interactions with customers and prospects to make sales and maintain customer relationships.” Armstrong, G., & Kotler, P. (2011). Sales Cycle overview from the Argosy University Classroom, Principles of Marketing (n.d.). Prospecting and Qualifying – A salesperson would use the prospecting and qualifying stage to follow leads or prospects to identifying potential customers based on several different categories like, volume of business, location, financial ability, growth rate, and product usage. Pre-approach – Salesman will use this step as the market research stage where they will learn as much as possible about the customer before his first approach. Approach – Meeting between salesperson and buyer. Always want to make a good first impression to get the relationship off to a good start. Presentation & Demonstration – Salesman will pitch the product that is for sale showing all of the applications and benefits of the product to the buyer, handling any objections, clarifying customer anxieties. Closure – Review any specifications of product and proposal that was offered, and finally buyer for an order. Follow up – To ensure that buyer is satisfied with the product one delivered, make a phone call to the buyer to confirm happy with the purchase, which can ensure repeat business. Due to the overwhelming cost and the small amount of customers that personal selling reaches the Natural Spring Granite Filtered Spring Water Bottle Company is not going to have any outside salesperson. We will have of course our highly trained and educated customer service team for assistance with ordering online, product questions, stock availability, and Home Delivery Coordinators etc.
  • 38. INTRODUCTION TO MARKETING BUSINESS PLAN 38 Sales Promotion The first sales promotion we are going to do is being a sponsor for one of the NASCAR teams. NASCAR has the most people that attend every race for a single function and they are always televised for more viewers to see our brand on TV. We will have the driver drinking our product after the races and show how important it is to stay hydrated while racing. During a two- or three-hour race, a driver can lose up to 10 pounds of water so drivers have nutritionists who help drivers during races make sure they hydrate with the correct fluids. Moltke, D. (2013, August 3). Another sales promotion is to collaborate with the Granite State Race Services. They keep track of all the bookkeeping for over 200 different races a year that we will sponsor. The races will use our water to sell at the races for the spectators and the runners in the race. We will be featured on the ads for these races in the surrounding areas of the races from Mount Desert Island, Me to St. John, Virgin Islands. This will let our brand get exposure for the quality and value we offer in our water. Teschek, B. (n.d.). Direct Marketing We are going to keep a database of all the emails from customers that completed our survey online out our water and we will then send out as many possible email blasts to each individual customer with our promotional new offers once they are available. We are also going to take the list of runners from the marathons and send a personalized email blast with special promo code for our website for all the runners families witch is exclusive to runners in the marathon only. We will also then send out the same promotion to them by mail so they will see the ad for this promotion twice to make sure they got the coupon and seen the add.
  • 39. INTRODUCTION TO MARKETING BUSINESS PLAN 39 Public Relations Public Relations are going to be intertwined into the Marathon races that we are sponsoring. We are going to have the 20th Year anniversary of the biggest race of the year in Bristol New Hampshire. This is scheduled at the end of Jan. 2015 about one month after our first test run of our product launch in retail stores just after Christmas 2014. We are going to have an educational card or pamphlet that will be passed out with all of the company information, product knowledge, coupon on the card also, etc. Brand Management Branding Strategies Social media falls under the umbrella of promotion, advertising, and public relations. Any organization can use social media to strategically communicate key factors regarding brand associations, evaluate consumer preferences, and adopt content to meet the relationship- marketing goals. Wallace-McRee, L. (2012). To cultivate brand awareness, brand image, brand associations, agenda setting and framing social media has the potential to be used as a communication tool that shapes the perceptions of the public by increasing exposure through generating contact and displaying the media information in favorable way. Wallace-McRee, L. (2012). Emotional Branding “Researchers say full emotional attachment is common to about 25% of consumers and emotionally attached consumers purchase substantially more than regular customers, which frees companies from having to rely on promotions and discounts to keep them buying the brand. Emotional branding creates lifelong bonds.” (2012).
  • 40. INTRODUCTION TO MARKETING BUSINESS PLAN 40 “On the flip side however, while advertisers are eager to create emotional attachments between consumers and their goods, we've found forming these deep feelings can be a difficult task." Emotional branding creates lifelong bonds. (2012). Brand Extension “It is commonly agreed that brand extension is a marketing strategy enabling a firm producing a product with a well-defined image to use the same brand name in a different product category.” Venkatesh, R, MBA, P. (2013). “There is the advantage of increased awareness among consumers of the brand name and greater profitability from offerings in more than one product category but the success of this brand extension depends on how strongly the consumers regard the brand's values and goals.” Venkatesh, R,MBA, P. (2013). Natural Spring Granite Filtered Spring Water Bottle Company is not going to tie its name to any other current product or brand. We are going to make our company a brand that people can refer to as the wholesome brand that always has the great healthy tasting water. Global Markets Opportunities & Challenges The global bottled water market has seen a remarkable and continued annual growth in the past 15 years. For consumers seeking health and wellbeing, bottled water is an alternate to the traditional soft drinks. The media attention on the growing obesity problem in the West, particularly in the European and North American populations, the links made between it and the increased consumption of soft drinks by children has reinforced the growth of bottled water.
  • 41. INTRODUCTION TO MARKETING BUSINESS PLAN 41 GLOBAL BOTTLED WATER MARKET leading countries’ consumption and compound Annual growth rates 2006 – 2011 2011 Millions of Gallons CAGR* Rank Countries 2006 2011 2006/11 1 United States 8,225.0 9,107.3 2.0% 2 China 4,163.3 7,686.4 13.0% 3 Mexico 5,359.9 7,520.7 7.0% 4 Brazil 3,301.6 4,500.9 6.4% 5 Indonesia 2,155.9 3,760.6 11.8% 6 Thailand 1,426.2 3,118.8 16.9% 7 Italy 3,115.5 3,034.7 -0.5% 8 Germany 2,808.9 2,954.2 1.0% 9 France 1,524.0 2,291.0 0.0% 10 Spain 1,524.0 1,514.8 -0.1% Top 10 Subtotal 34,395.6 45,489.3 5.8% All Others 12,606.8 15,880.7 4.7% World Totals 47,002.4 5.5% * compound annual growth rate Beverage Marketing corporation (2012) Retrieved from http://www.bottledwater.org/files/2011BWstats.pdf
  • 42. INTRODUCTION TO MARKETING BUSINESS PLAN 42 Linebac, N., & Gritzner, M. L. (31, October 31). Opportunities and Challenges in the global market Opportunities  Growth in urbanization and population  Increasing level of health awareness  Bottle water is a rapidly growing  Competitive market segments  Rise in income and consumption Challenges  Spurious brands have flooded the bottle water market
  • 43. INTRODUCTION TO MARKETING BUSINESS PLAN 43  Low penetration in rural markets  Possible threat from litigation and public campaigns  Brand and category differentiation  Increasing use of water purifiers. Natural Springs Bottle Water Company is going to choose to adapted global marketing strategy because the same product cannot be marketed in the same way from one culture to the next. Other reasons for the change in the market strategies would be Demographic Characteristics, Geographic Factors, Sociocultural Factors, Economic Factors, and Political/Legal Factors. Because of all these factors, we are going to Adapt Global Marketing. Which is an international marketing strategy for adjusting market strategy and mix of elements to each internal target market, bearing more costs but hoping for a larger market share and return. Armstrong, G., & Kotler, P. (2011). We will also try to collaborate up with a company in these foreign markets to set up some Joint Venturing, which means to enter foreign markets by joining with foreign companies to produce or market a product or service.
  • 44. INTRODUCTION TO MARKETING BUSINESS PLAN 44 REFERENCES Part 1 Armstrong, G. & Kotler, P. (2009). Argosy University MARKETING: An Introduction, 9e. Retrieved from http://digitalbookshelf.argosy.edu/#/books /9780558021122/ pages/48398847 Kumar, N. (2004-06). Analysis of Marketing Strategy of Mineral Water Industry. Retreived from http://www.slideshare.net/ajmerasahil/packaged-drinking-wa?related=1 De Melo, J. (2012), November 20). Bottled Water Case 2006. Retrieved from http://www.slidesshare.net/juliedemelo7/bottled-water-case-2006 International Water Bottled Association (IBWA). (2014). Bottled Water Markets. Retrieved from http://www.bottledwater.org/economics/bottled-water-market Part 2 Argosy University Classroom. Principles of Marketing (n.d.). Unit 2 Module 2, Retrieved November 28, 2014, from http://myeclassonline.com/ International Water Bottled Association (IBWA). (2014). Bottled Water Markets. Retrieved from http://www.bottledwater.org/economics/bottled-water-market International Water Bottled Association (IBWA). (2014). Bottled Water. Retrieved from http://www.bottledwater.org/economics/real-cost-of-bottled-water Gleick, P. (2013, April 25). Bottled Water Sales: The Shocking Reality. Retreived from http://scienceblogs.com/significantfigures/index.php/2013/04/25/bottled-water-sales-the- shocking-reality/ Bottled Water Industry: Home and Office Delivery. (n.d.). Retrieved November 30, 2014, from http://www.bottledwater.org/economics/bottled-water-industry Chart References Gleick, P. (2013, April 25). Bottled Water Sales: The Shocking Reality. Retreived from http://scienceblogs.com/significantfigures/index.php/2013/04/25/bottled-water-sales-the- shocking-reality/ US Census Bureau. (2014, August). Value of U.S. product shipments of bottled water from 2002 to 2012 (in billion U.S. dollars) [Chart]. In Statista. Retrieved from http://www.statista.com/statistics/187287/us-bottled-water-product-shipment-value-since- 2002/ Beverage Industry Magazine. (2014, July). Sales of the leading 10 bottled still water brands of the United States in 2014 (in billion U.S. dollars) [Chart]. In Statista. Retrieved from
  • 45. INTRODUCTION TO MARKETING BUSINESS PLAN 45 http://www.statista.com/statistics/188312/top-bottled-still-water-brands-in-the-united- states Beverage Industry Magazine. (2014, January). Share of bottled water sales in the United States in 2012, by distribution channel [Chart]. In Statista. Retrieved from http://www.statista.com/statistics/252387/share-of-us-bottled-water-sales-by-distribution- channel/ Part 3 Armstrong, G., & Kotler, P. (2011). Chapter 7 Products,Services, and Brands Customers Value. In Marketing: An introduction (9th ed.,p. 200). Boston: Prentice Hall. Raab,M. (2010, November 13). Product levels. Retrieved from http://maryraab.wordpress.com/2010/11/13/product-levels Koszegi-Nagy, Z. (2014, March 31). Marketing all around us - The five levels of the product. Retrieved from http://zsobig.hubpages.com/hub/Marketing-all-around-us-The-five-levels-of-the-product Beverage Consumption & Sales. (n.d.). Retrieved December 4, 2014, from http://www.nestle- watersna.com/en/about-nestle-waters/industry-overview/beverage-consumption-sales Nicolet Water Quality: Fresh From The Forest. (2014). Retrieved from http://www.nicoletwater.com/water-quality/ Poland Spring® 100% Natural Spring Water. (n.d.). Retrieved December 5,2014, from http://www.polandspring.com/#/assured/our_quality Argosy University Classroom. Principles of Marketing (n.d.). Unit 3 Module 3, Retrieved December 5, 2004 from http://myeclassonline.com/ Armstrong, G., & Kotler, P. (n.d.). Argosy University: Chapter 8 New Product Development and Product Life Cycle Strategies. Retrieved December 5, 2014, from https://digitalbookshelf.argosy.edu/#/books/9780558021122/pages/48399594 Crumley, C. R. (2007). The boston consulting group on strategy. Journal of Applied Management and Entrepreneurship, 12(4),91-93. Retrieved from http://search.proquest.com/docview/203899936?accountid=34899 Bottled Water. (2014, December 04). Retrieved from http://www.bottledwater.org/bottled-water-sales- and-consumption-projected-increase-2014-expected-be-number-one-packaged-drink Reference for Business. (1995, April). Retrieved from http://www.referenceforbusiness.com/business- plans/Business-Plans-Volume-04/Bottled-Water-Manufacturer.html Chart References
  • 46. INTRODUCTION TO MARKETING BUSINESS PLAN 46 Gleick, P. (2013, April 25). Bottled Water Sales: The Shocking Reality. Retreived from http://scienceblogs.com/significantfigures/index.php/2013/04/25/bottled-water-sales-the- shocking-reality/ Beverage Industry Magazine. (2014, July). Sales of the leading 10 bottled still water brands of the United States in 2014 (in billion U.S. dollars) [Chart]. In Statista. Retrieved from http://www.statista.com/statistics/188312/top-bottled-still-water-brands-in-the-united-states Part 4 Armstrong, G., & Kotler, P. (2011). CHAPTER 10 Marketing Channels: Delivering Customer Value. Marketing: An introduction (9th ed., p. 294). Boston: Prentice Hall. Argosy University Classroom. Principles of Marketing (n.d.). Unit 4, Module 4, Retrieved December 5, 2004 from http://myeclassonline.com/ Ouma, D., Ombui, K., & Kagiri, W. A. (2013). Efficiency in the kenyan purified bottled water industry: A channel intensity strategy. International Journal of Business and Social Science, 4(3) Retrieved from http://search.proquest.com/docview/1321484316?accountid=34899 Müller-Lankenau, C., Wehmeyer, K.,& Klein, S. (2006). Strategic channel alignment: An analysis of the configuration of physical and virtual marketing channels. Information Systems and eBusiness Management, 4(2),187-216. doi:http://dx.doi.org/10.1007/s10257-005-0031-4 Part 5 Armstrong, G., & Kotler, P. (2011). CHAPTER 13 Communicating Customer Value: Personal Selling and Sales Promotion. Marketing: An introduction (9th ed., p. 385). Boston: Prentice Hall. Argosy University Classroom. Principles of Marketing (n.d.). Unit 5, Module 5, Retrieved December 5, 2004 from http://myeclassonline.com/ Moltke, D. (2013, August 3). Hydration for Race Car Drivers. Retrieved from http://www.stack.com/2013/08/03/race-car-nutrition/ Teschek, B. (n.d.). Granite State Race Services. Retrieved December 17, 2014, from http://www.gsrs.com/index.php Wallace-McRee, L. (2012). Professional sport and facebook: A content analysis of branding, marketing, and communication strategies in the national football league (Order No. 3550858). Available from ProQuest Dissertations & Theses Full Text; ProQuest Dissertations & Theses Global. (1316886671). Retrieved from http://search.proquest.com/docview/1316886671?accountid=34899
  • 47. INTRODUCTION TO MARKETING BUSINESS PLAN 47 Emotional branding creates lifelong bonds. (2012). B & T Weekly, Retrieved from http://search.proquest.com/docview/1220528449?accountid=34899 Venkatesh, R,MBA, P. (2013). BRANDING AND BRAND EXTENSION STRATEGIES. International Journal of Marketing and Technology, 3(4), 49-57. Retrieved from http://search.proquest.com/docview/1412868136?accountid=34899 Netscribes Inc. (2013, September 13). Market Research Report : Bottled water market in india 2013. Retrieved from http://www.slideshare.net/ResearchOnIndia/market-research- report-bottled-water-market-in-india-2013?qid=53ca6313-49c6-4528-9195- f834eb36a174&v=default&b=&from_search=4 Linebac, N., & Gritzner, M. L. (31, October 31). Maps101 - BOTTLED WATER'S TRUE COSTS. Retrieved from http://demo.maps101.com/index.php?option=com_flexicontent&view=items&id=565%3 Abottled-waters-true-costs Armstrong, G., & Kotler, P. (2011). CHAPTER 15 Global Marketing, Marketing: An introduction (9th ed., p. 385). Boston: Prentic