Mineral water- Four P's of Marketing; Product, Price, Place, Promotion


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Identifies the four p's of marketing i.e; price, place, promotion, product through an example of the mineral water

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Mineral water- Four P's of Marketing; Product, Price, Place, Promotion

  1. 2. <ul><li>Sana Khalid 127 </li></ul><ul><li>Kiran Zahra 1550 </li></ul><ul><li>Sobia Akhlaq 1548 </li></ul><ul><li>Nasiba Waris 139 </li></ul><ul><li>Salma Bashir 126 </li></ul><ul><li>Saba Khursheed 1541 </li></ul><ul><li>Sameera Dar 1542 </li></ul>
  2. 3. SANA KHALID-Market research ROLL NO. 127
  3. 4. <ul><li>Market research is the process of systematically gathering, recording and analyzing data and information about customers, competitors and the market . </li></ul>
  4. 5. Market Research - The Process Step One: Define Marketing Problems and Opportunities <ul><li>Launching a new product or service </li></ul><ul><li>Low utilization of company's products or services. A poor company image and reputation </li></ul><ul><li>Low awareness of company and its products or services </li></ul>
  5. 6. Step Two: Set Objectives, Budget, and Timetables <ul><ul><li>Explore the nature of a problem </li></ul></ul><ul><ul><li>Test possible cause and effect relationships </li></ul></ul><ul><ul><li>How much money are we willing to invest in our market research? </li></ul></ul><ul><ul><li>Detailed, realistic time frame </li></ul></ul><ul><li>Step Three: Select Research Types, Methods, and Techniques </li></ul>
  6. 7. <ul><li>Step Four: Design Research Instruments </li></ul><ul><li>Questionnaire </li></ul><ul><ul><li>Open-end questions </li></ul></ul><ul><ul><li>Close-end questions </li></ul></ul><ul><li>Step Five: Collect Data </li></ul><ul><ul><li>Clear </li></ul></ul><ul><ul><li>reliable results </li></ul></ul><ul><ul><li>under direction of </li></ul></ul><ul><ul><li>experienced researchers </li></ul></ul>
  7. 8. Step Six: Organize and Analyze the Data Once our data has been collected, it needs to be cleaned. Cleaning research data involves editing, coding, and tabulating results . <ul><li>Step Seven: Present and Use Market Research Findings </li></ul><ul><li>An organized manner to the decision makers of the business. </li></ul><ul><li>Weigh the cost of gathering more information against its </li></ul><ul><li>potential usefulness </li></ul>
  8. 9. Planning for Marketing Research <ul><li>Step 1: Determine the Research Purpose </li></ul><ul><li>Explanation </li></ul><ul><li>Prediction </li></ul><ul><li>Monitoring </li></ul><ul><li>Discovery </li></ul><ul><li>Hypothesis Testing </li></ul>
  9. 10. <ul><li>Step 2: Identify What is to be Learned </li></ul><ul><li>critical step in the research process </li></ul><ul><li>provides guidance on what must be accomplished </li></ul>
  10. 11. <ul><li>Step 3: Research Design – Methods </li></ul><ul><li>Descriptive Research </li></ul><ul><li>Exploratory Research </li></ul><ul><li>Causal Research </li></ul><ul><li>Step 4: Research Design - Data Collection </li></ul><ul><li>Acquire pre-existing research </li></ul><ul><li>Undertake new research themselves </li></ul><ul><li>Out-source the task of new research to a </li></ul><ul><li>third-party, such as a market research company </li></ul>
  11. 12. <ul><li>Step 5: Evaluate Data </li></ul><ul><li>Incomplete Responses </li></ul><ul><li>Questionable Entry </li></ul><ul><li>Data Entry Error </li></ul><ul><li>Step 6: Analyze Data </li></ul><ul><li>Descriptive Data Analysis </li></ul><ul><li>Inferential Data Analysis </li></ul>
  12. 13. <ul><li>Step 7: Communicate Results </li></ul><ul><li>Report the findings </li></ul><ul><li>An oral presentation </li></ul>
  13. 14. <ul><li>Market Trends </li></ul><ul><li>Customer analysis </li></ul><ul><li>Choice Modeling </li></ul><ul><li>Competitor analysis </li></ul><ul><li>Risk analysis </li></ul>Name of Brands 0.5 liter 1.5 liter 6 liter Nestle, pure life 15 24 60 Atlantis 15 23 57 Aqua Fina, purity guaranteed 15 24 60 Nile, its nature 13 22 55
  14. 15. KIRAN ZAHRA ROLL NO:1550
  15. 16. <ul><li>Target market are a set of buyers sharing common needs or characteristics that the company decides to serve. </li></ul><ul><li>Target marketing involves breaking a market into segments and then concentrating your marketing efforts on one or a few key segments </li></ul>TARKET MARKET
  16. 17. <ul><li>Three of the most common types are </li></ul><ul><li>Geographic segmentation </li></ul><ul><li>Demographic segmentation </li></ul><ul><li>Psychographic segmentation </li></ul>TYPES OF TARGET MARKETING
  17. 18. <ul><li>MARKET SEGMENTATION OF CUSTOMER RETENTION </li></ul><ul><li>Market segmentation is when you divide your potential market into separate categories or segments according to their individual needs. </li></ul><ul><li>Determining your target market </li></ul>
  18. 19. <ul><li>Primarily we are focusing our drive/lunch of marketing NILE (It’s Nature) in Punjab due to the fact that the people in this province are more vulnerable to such sort of inventions/ introductions in terms of </li></ul><ul><ul><li>Taste </li></ul></ul><ul><ul><li>Habits </li></ul></ul><ul><ul><li>Standards of living </li></ul></ul>MARKETING
  19. 20. Geographic Segmentation (Punjab)
  21. 22. MARKETING IN LAHORE <ul><li>As its is evident that we are focusing in the province of Punjab at the moment. Again in this province we are mainly concentrating on big cities but more specifically the city of Lahore firstly to begin with. In this way in view of the total population of Lahore which is approximately 8 millions. </li></ul>
  22. 23. LAHORE IS DIVIDED INTO FUTHER POSH AREAS <ul><li>Lahore is divided in to further posh areas with regard to market segment. These are as follows </li></ul><ul><li>Model Town </li></ul><ul><li>Garden Town </li></ul><ul><li>Faisal Town </li></ul><ul><li>Gulberg ‘ </li></ul><ul><li>Defence </li></ul><ul><li>Cantt </li></ul><ul><li>Iqbal town and Johar town </li></ul>
  23. 25. Graph Showing Statistics
  24. 26. POSH AREAS ESTAMTED <ul><li>As we have estimated the total population of posh areas as above at 8Lac, It may be safely concluded that in view of high, middle, and average income groups of people resident in these location are to be approved and make them realize the purity of Nile (It’s Nature).Thus in this way we have to target the marketing of Nile between 15 to 20% of the residents of these areas’ of all groups to use this pure drinking water. This will further provide us to speed up our marketing plans for profit orientation in future to the manufactures of the product i-e Nile (it’s Nature) </li></ul>
  25. 27. EXCLUSIVE TARGET MARKET LOCATIONS <ul><li>Air ports </li></ul><ul><li>Railvay Stations </li></ul><ul><li>Bus Station </li></ul><ul><li>Hospitals </li></ul><ul><li>Tourism Places </li></ul><ul><li>Universities and College </li></ul>
  26. 29. What is Product? “ In marketing, the term “product” is often used as a catch-all word to identify solutions a marketer provides to its target market. We will follow this approach and permit the term “product” to cover offerings”
  27. 30. Categories of Consumer Products: <ul><li>Convenience Products – These are products that appeal to a very large market segment. They are generally consumed regularly and purchased frequently. Examples include most household items such as food, cleaning products, and personal care products. </li></ul><ul><li>Shopping Products – These are products consumers purchase and consume on a less frequent schedule compared to convenience products. </li></ul><ul><li>Specialty Products – These are products that tend to carry a high price tag relative to convenience and shopping products. Consumption may occur at about the same rate as shopping products but consumers are much more selective. </li></ul>
  28. 31. <ul><li>Emergency Products – These are products a customer seeks due to sudden events and for which pre-purchase planning is not considered. </li></ul><ul><li>Unsought Products – These are products whose purchase is unplanned by the consumer but occur as a result of marketer’s actions. </li></ul>
  29. 32. <ul><li>The categories of consumer products mineral Water and our Product NILE (its Nature) comes under the category of Convenience Product that it is bought on daily basis. It will be used by ever class because of its cheap rate, its pure taste and excellent quality. So we try our best to let the consumers to buy it with warranty of its purity and taste </li></ul>
  30. 33. Categories of Business Products <ul><li>Raw Materials </li></ul><ul><li>Processed Materials </li></ul><ul><li>Equipment </li></ul><ul><li>Basic Components </li></ul><ul><li>Advanced Components </li></ul><ul><li>Product Component </li></ul><ul><li>MRO (Maintenance, Repair and Operating) Products </li></ul>
  31. 35. Components of a Product <ul><li>Core Benefits </li></ul><ul><li>Actual Product </li></ul><ul><li>Augmented Product </li></ul>
  32. 36. <ul><li>NILE (its Nature) .Its attractive bottle, its aqua color and its pure taste will definitely fulfill the need of our customer. We keep our objective in our mind that is to satisfy our customer in every aspect of our product’s nature. we are sure about our product that it will not only compete with other mineral waters successfully but also will let the people to buy it in future with satisfaction and warranty taste,quality,affordable rate. </li></ul>
  33. 37. Key Product Decisions
  34. 38. <ul><li>Consumable Product Features </li></ul><ul><li>Branding </li></ul><ul><li>Packaging </li></ul><ul><li>Labeling </li></ul>
  35. 39. Consumable Product Features: <ul><li>Functional Benefits </li></ul><ul><li>Psychological Benefits </li></ul>
  36. 40. <ul><li>While launching NILE (its Nature) we keep in our mind to fulfill the Functional n Psychological need of our customers. As it is important to open a network at large scale and customers also prefer such products. Among the Competitors that is NESTLE and AQUAFINA . </li></ul><ul><li>NILE (its Nature) can get a good place in the market. Off season launch would make sense as Nestle n even other small competitors would not be expect any new entered. </li></ul>
  37. 41. AVAILABLE SIZES OF NILE ARE: -0.5Liters -1.5Liters -6Liters NILE it's Nature 1.5 Liter
  38. 42. BRANDING: <ul><li>Branding involves decisions that establish an identity for a product with the goal of distinguishing it from competitors’ offerings. In markets where competition is fierce and where customers may select from among many competitive products, creating an identity through branding is essential. </li></ul>
  39. 43. BRANDING STRATEGY <ul><li>Individual Product Branding </li></ul><ul><li>Family Branding </li></ul><ul><li>Co-Branding </li></ul><ul><li>Private or Store Branding </li></ul><ul><li>No-Name or Generic Branding </li></ul><ul><li>Brand Licensing </li></ul>
  40. 44. PACKAGING:
  41. 45. <ul><li>Final Customer Packaging </li></ul><ul><li>Distribution Packaging </li></ul>
  42. 46. New Product Development Process: <ul><li>Purchase the Product </li></ul><ul><li>License the Product </li></ul><ul><li>Purchase Another Firm </li></ul>
  43. 47. Nasiba Waris-Pricing Roll no.139
  44. 48. “ Price is a component of exchange or transaction that take place between two parties and refers to what must be given by one party in to obtain something offered by another party ” PRICE
  45. 49. Importance of price <ul><li>Most flexible marketing mix variable </li></ul><ul><li>Setting the right price </li></ul><ul><li>Important part of sales promotion </li></ul>
  46. 50. PRICE OBJECTIVES <ul><li>Maximize long run profit </li></ul><ul><li>Maximize short run profit </li></ul><ul><li>Company growth </li></ul><ul><li>Increase market share </li></ul><ul><li>Enhance the image of the firm ,brand or ,product </li></ul><ul><li>Increase sales volume </li></ul>
  47. 51. <ul><li>Internal factors </li></ul><ul><li>External factors </li></ul>Factors affecting price decision
  48. 52. Internal factors <ul><li>Company and marketing objectives </li></ul><ul><li>Marketing strategy </li></ul><ul><li>cost </li></ul>
  49. 53. External factors <ul><li>Elasticity of demand </li></ul><ul><li>Customer and channel partner expectations </li></ul><ul><li>Competitive and related products </li></ul><ul><li>Government regulations </li></ul>
  50. 54. <ul><li>Price is not a key factor when purchase is being considered. </li></ul><ul><li>One of several variables </li></ul><ul><li>Value is perceived benefits over per price paid </li></ul><ul><li>Asses product overall value </li></ul>Price vs. value
  51. 55. Price strategies <ul><li>Cover your cost </li></ul><ul><li>Test try offering it a different price points </li></ul><ul><li>Offer the item at different prices to different markets </li></ul><ul><li>Include guarantee </li></ul><ul><li>Offer different payment options </li></ul><ul><li>Create urgency </li></ul>
  52. 56. SALMA BASHIR-pricing ROLL NO. 126
  53. 57. <ul><li>PRICING METHOD </li></ul><ul><li>A pricing method is a mechanical procedure for setting prices on a regular basis </li></ul><ul><li>TYPES of PRICING METHODS </li></ul><ul><li>Cost Oriented Pricing </li></ul><ul><li>Market Oriented Pricing </li></ul><ul><li>Competition Oriented Pricing </li></ul>
  54. 58. Cost Oriented Pricing This is what where the price of a product or service is calculated and a margin is applied to derive a selling pricing .
  55. 59. <ul><li>Market Oriented Pricing </li></ul><ul><li>Initial price is based on analysis of market research in which customer expectations are measured.  </li></ul><ul><li>Types of Market Oriented Pricing </li></ul><ul><ul><li>Premium Pricing </li></ul></ul><ul><ul><li>Penetrartion Pricing </li></ul></ul><ul><ul><li>Skimming Pricing </li></ul></ul><ul><ul><li>Economy Pricing </li></ul></ul>
  57. 61. <ul><li>Competition Oriented Pricing </li></ul><ul><li>The firm fixes the prices of products in relation to the competitors prices </li></ul>
  58. 62. <ul><li>PRICING STRATEGY </li></ul><ul><li>A plan which determines best (at the time of marketing ) price decisions </li></ul><ul><ul><li>Quantity Discounts </li></ul></ul><ul><ul><li>Cash Discounts </li></ul></ul><ul><ul><li>Leader Pricing </li></ul></ul><ul><ul><li>Price lining </li></ul></ul><ul><ul><li>Promotional Pricing </li></ul></ul>
  59. 63. 0.5 liter 1.5 liter 6 liter Only for Rs.55 Only for Rs.22 Only for Rs.13 NILE it's Nature NILE NILE 6 Liter it's Nature 1.5 Liter NILE 0.5 Liter
  60. 64. TOTAL PRICE Weight Retail Prices Tax@21% per unit price No. of units Total Price 0.5 liter 11 2.31 13 30,000 390,000 1.5 liter 18 3.78 22 25,000 550.000 6 liter 45 9.45 55 15,000 825,000 Aggregate Total Price 1765,000
  61. 65. <ul><li>COST TABEL – NILE, its nature </li></ul>Number of bottles produced and sold = 70,000 Expected Sales Rs. 14,59,000 Profit @ 10% Rs. 1,45,900 Total cost Rs.13,13,100 Allocation of Cost Promotion @ 40% Rs.5,25,200 Production @25% Rs. 3,28,300 Pricing @ 15% Rs. 1.96,900 Distribution @ 10% Rs. 1,31,310 Target Market@ 10% Rs. 1,31,310
  62. 66. <ul><li>For Wholesalers </li></ul>SPECIAL OFFERS Woww……..  Boxes purchased in a single order %discount 4m list price Up to 500 0.5 None 600-1500 1.5 liter 15% 1600-2500 1.5 liter 20% 2500-3500 0.5 liter 40% + free dinner in Pearl Continental
  63. 67. <ul><li>For Retailers </li></ul>SPECIAL OFFERS Hmm……......... .  Quantity purchase in a single order % Discount from list price Up to 300 0.5 liter/ 1.5 liter None 400-500 6 liter bottle 15% 600-1000 1.5 liter bottle 25%
  64. 68. SABA KHURSHEED ROLL NO. 1541
  65. 69. <ul><li>DISTRIBUTION: </li></ul><ul><li>IT is the fourth traditional element of </li></ul><ul><li>marking mix. Allow customers to gain </li></ul><ul><li>access and purchase a marketer’s product. </li></ul><ul><li>OBJECTIVE OF DISTRIBUTION : </li></ul><ul><li>Our objective of distribution is to create place utility, the value of having our product where customers wants it & when they want it. </li></ul>
  66. 70. <ul><li>ASPECTS OF DISTRIBUTION: </li></ul><ul><li>There are two aspects of distribution which are </li></ul><ul><li>LOGISTICS: Physical movement of goods </li></ul><ul><li>STRATEGY: Who participate and what they do. </li></ul><ul><li>DISTRIBUTION DECISIONS: </li></ul><ul><li>Our distribution decisions focuses on establishing a </li></ul><ul><li>system that, at its basic level allow our customers to </li></ul><ul><li>gain access & purchase our product because having </li></ul><ul><li>a strong product does little if customer is not able to </li></ul><ul><li>easily obtain it. </li></ul>
  67. 71. <ul><li>OUR distribution decision includes( but limited to): </li></ul><ul><li>Assessing the best distribution channel for getting our product to customers. </li></ul><ul><li>Determining whether a reseller network needed. </li></ul><ul><li>Arranging a reliable ordering system that allow customers to place orders. </li></ul><ul><li>Creating the best delivering or transportation system. </li></ul><ul><li>Establishing facilities for product storage. </li></ul>
  68. 72. <ul><li>TARGET MARKET: Lahore is our target market initially we selected 8 different well known areas of Lahore which are </li></ul><ul><li>1)Model town 2)Faisal town </li></ul><ul><li>3)Garden town 4)Joher town </li></ul><ul><li>5)Allama iqbal town 6)Deffence </li></ul><ul><li>7)Gulberg 8) cantt </li></ul>
  69. 73. <ul><li>CHANNEL OF DISTRIBUTION: The path or route taken by a product as it moves from producer to consumer is called channel of distribution. </li></ul><ul><li>LEVEL OF CHANNELS OF DISTRIBUTION: There are two levels of distribution. </li></ul>
  70. 74. <ul><li>CHANNEL MEMBERS: </li></ul><ul><li>Wholesalers </li></ul><ul><li>Retailers </li></ul><ul><li>Agent </li></ul><ul><li>Direct sales force </li></ul><ul><li>FUNCTIONS OF DISTRI BUTION: The main functions of distribution are </li></ul><ul><li>Information . promotion </li></ul><ul><li>Contact . Matching </li></ul><ul><li>Negotiation . Physical distribution </li></ul><ul><li>Financing . Risk taking </li></ul>
  71. 75. <ul><li>DISTRIBUTION STRATEGIES: </li></ul><ul><li>Refers to how an organization will distribute the </li></ul><ul><li>product or service they are offering to the end </li></ul><ul><li>users at the right place or time. </li></ul><ul><li>There are three types of distribution strategies </li></ul><ul><li>Intensive strategy: used commonly to distribution of low priced or impulse products </li></ul><ul><li>Exclusive strategy: used commonly to distribution of high priced products involves limited distribution to single outlet. </li></ul><ul><li>Selective strategy: In this a small numbers of retail outlets are chosen for distribution of products. </li></ul>
  72. 76. <ul><li>CHANNEL DESIGN DECISION: To design our distribution channels we take different decisions and do bellow mention surveys. </li></ul>
  73. 77. <ul><li>WHOLESALING: </li></ul><ul><li>It is consist of sales & all activities </li></ul><ul><li>directly related to sales, goods,services </li></ul><ul><li>to Business & other org for resale. </li></ul><ul><li>WHOLESALERS : </li></ul><ul><li>He is a trader who purchase goods in large quantities from manufacturers & resells them to retailers in small quantities. </li></ul>
  74. 78. <ul><li>TYPES OF WHOLESALERS: There are 3 types of wholesalers. which are </li></ul>
  75. 79. <ul><li>RETAILING: </li></ul><ul><li>It consist of sales & all activities related to sales,goods, </li></ul><ul><li>services to final consumer for personal & non business </li></ul><ul><li>use. </li></ul><ul><li>RETAILER: He a person who buys products relatively </li></ul><ul><li>in small quantities from wholesalers & sell them in </li></ul><ul><li>small quantities to final consumer. </li></ul><ul><li>RETAIL STORE LOCATIONS: We select our retail store </li></ul><ul><li>location based on following factors, </li></ul><ul><li>Populations of customers </li></ul><ul><li>Competition </li></ul><ul><li>Accessibility </li></ul>
  76. 80. <ul><li>TYPES OF RETAILERS: There are 4 types of retailers which are </li></ul>
  77. 81. <ul><li>DISTRIBUTION COST: </li></ul><ul><li>Total numbers of unit distributed =70,000 units </li></ul><ul><li>UNITS GIVEN TO </li></ul><ul><li>Retailers = 30,000 </li></ul><ul><li>Wholesalers = 40,000 </li></ul>
  78. 82. <ul><li>UNITS DISTRIBUTED TO DIFFERENT AREAS: </li></ul>AREAS MODEL TOWN FAISAL TOWN GARDEN TOWN JOHER TOWN A.IQBAL TOWN DEFFENCE GULBERG CANTT TOTAL UNITS DISTRIBUTED 12,000 units 10,000 units 8000 units 9000 units 14,000 units 3,500 units 6000 units 7,500 units 70,000 units
  79. 83. <ul><li>DISTRIBUTION OF DIFFRRENT SIZES: </li></ul><ul><li>We are distributed 3 different sizes of “NILE” </li></ul>Distributed sizes No.of.units distributed 0.5 ltr 30,000 1.5 ltrs 25,000 6 ltrs 15,000 Total 70,000 units
  80. 84. <ul><li>ESTIMATED DISTRIBUTION COST: </li></ul><ul><li>Total units produced = 100000 units </li></ul><ul><li>Total units distributed = 70000 units </li></ul><ul><li>Total cost of distribution = Rs 131310 </li></ul><ul><li>Per unit cost of distribution = Rs 1.9 </li></ul><ul><li>Share of distribution in total cost = Rs 131310 </li></ul><ul><li>Share of distribution in % of total cost = 10% </li></ul>
  81. 85. <ul><li>Components Of Distribution Cost </li></ul><ul><li>Cost of fuel and oil = 18000 </li></ul><ul><li>Salaries of staff = 43000 </li></ul><ul><li>Van lease or hire = 70310 </li></ul><ul><li>Total Distribution Cost = 131310 </li></ul>
  82. 86. Sameera Dar-Promotion manager ROLL NO. 1542
  83. 87. <ul><li>A form of corporation communication that uses various methods to reach the targeted audience with a certain message to achieve the specific organizational goals. </li></ul>PROMOTION
  84. 88. <ul><li>Advertisement </li></ul><ul><li>Sales promotion </li></ul><ul><li>Public relations </li></ul><ul><li>Personal selling </li></ul>
  85. 89. <ul><li>Print media </li></ul><ul><li>Electronic media </li></ul><ul><li>Mass media </li></ul>ADVERTISING
  86. 90. <ul><li>Form of advertisement which is done before the launch of product to create the curiosity among people. </li></ul>TEASER
  87. 91. <ul><li>Build awareness </li></ul><ul><li>Create interest </li></ul><ul><li>Provide information </li></ul><ul><li>Stimulate demand </li></ul><ul><li>Inducing buyers to </li></ul><ul><li>try our product </li></ul>OBJECTIVES
  88. 92. Official Sponsor ICC Champions Trophy
  89. 93. BUSINESS-TO-BUSINESS Expo-centre, Fortress Stadium Lahore
  90. 94. <ul><li>COST: </li></ul><ul><li>Included in the ‘‘CAPEX’’ </li></ul><ul><li>Duration: </li></ul><ul><li>The period of 2 months </li></ul>