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Stream0
Principles of Marketing
Report
Stream 0
Purity - redefined
Stream0
Contents
 Industrial Background
 Introduction
 Mission Statement
 Micro Environment
 Competitors
 Macro Environment
 Market Segmentation
 Consumer Buying Behavoiur
 Product Life Cycle
 New Product Development
 Marketing Mix
 Flavours and Branding
 Pricing
 Place
1. Distribution Channels
 Promotion
 Sales Forecast
 Financial Reports
 Marketing Strategies
 SWAT analysis
 Conclusion
 References to complete the report.
Stream0
INDUSTRIAL BACKGROUND
BOTTLED WATER MARKET IN PAKISTAN:-
“Bottled water is considered as a source of clean water. It is often the consumers’
choice for a healthy beverage that gives them a source of minerals, helps to prevent
obesity, and in so doing, reduces the risk of associated healthcare problems.”
Why Water
Our health depends on many things. One of the most important is water. Pure, safe and
healthy water is vital for maintaining your health and everything around you. It is the
drink of a good wholesome life.
Here are just some of the reasons why you should be drinking lots of water:
• Water makes up to 50-60% of your body!
• Water is vital for the proper functioning of body cells; it regulates body temperature,
transports nutrients, ensures good blood circulation and keeps bowels healthy.
• Water serves as a shock absorber that protects vital organs and acts as a lubricant for
your joints.
• To keep a healthy amount of water in your body you need to drink a certain amount
each day. We're losing water all the time, even simply by breathing, but especially when
we perspire more due to increased physical activity or when it’s hot.
• If you haven’t had enough water you'll find yourself feeling lethargic, tired and
irritable. To keep your body revitalized and maintain energy levels, you must make sure
you're having regular drinks of pure, safe water as you go about your daily activities.
• Water is the best way to get a radiant and clear complexion as it promotes elasticity
while preventing your skin from becoming dry and prone to wrinkles. Not only that, but
water helps keep your breath from getting bad odor.
• If you feel a headache coming on then has water. It helps keep headaches at bay.
• Best of all, it's the only beverage with ZERO calories!
What is Dehydration?
You experience dehydration when your body loses too much fluid due to an increase in
body temperature such as fever, exposure to high temperatures or with prolonged
activity. Your body loses fluids by urination, sweating, vomiting and even diarrhea.
If you experience thirst, dry or parched mouth, headache, irritability, confusion and
difficulty concentrating, then you are dehydrated. You should drink up on pure water at
the first opportunity.
How Much Water?
Stream0
Your body weight and activity level determine the *amount of water you need to maintain
proper hydration. A good rule to follow is to drink at least 8 glasses of water a day and
add on more for each hour of activity. The table below gives a guideline of how much
water to drink, according to age, gender and level of physical activity
:
* Median Daily Total Water Intake for Least Active (no reported leisure time activity) and Most Active (leisure time activity 5 or
more times per week) Persons in the United States, (NHANES III, 1988-1994):
Why Bottled Water
Take a look around you. You'll notice that where once soft drinks were the first choice for
quenching thirst, now more and more people have bottled water in their hands.
You see, it's all about making informed and smart choices. Increasingly people are
becoming aware that pure water is an essential part of a healthy life. Among its
numerous benefits and functions, water revitalizes your body, helps prevent fatigue,
regulates your body's metabolism and also maintains your immune system.
People are becoming more health-conscious and they realize how the increased pollution
is adversely affecting the quality of water. At Stream0 we believe it is particularly
important to ensure that the water you and your family drink is pure, safe and healthy.
However bottled water in Pakistan is not considered a ‘beverage’. Beverage processing
includes carbonated soft drinks where Pakistan has the lowest per capita consumption in
the world, fruit juices, syrups and juice flavored drinks. Drinking water and also bottled
water is not considered an important commodity either. Water supply and prices for
drinking water and bottled water are not considered under the items in the Sensitive
Price Indicator, Consumer Price Index or Wholesale Price Index.
From this perspective, it is obvious that Pakistan has low consumption of bottled water.
The Government of Pakistan described the market for bottled water, with 33 million
liters of consumption per annum in 1999, as small but growing. Furthermore it is
Stream0
estimated that the consumption for 2003, as 70 million liters or 0.5 liters per capita. The
bottled water market in Pakistan has witnessed annual growth rates of 40 percent, and
after the introduction of “Nestlé's Pure Life” it had the fastest worldwide growth in
bottled water in 2000, at 140%. Recent figures estimate a yearly consumption of about 2
liters per person bottled although this is relatively low. But rough figures prove 964
percent consumption increase in five years of bottled water, thus one is able to conclude
that Pakistan is a highly dynamic and lucrative market.
Market expectations are as high in the retail market of bottled water as in the household
and operations sector for bulk water. Besides these market expectations, the production
of bottled water is also considered quite profitable. It is estimated that a bottle of 1.5
liters has production costs of PKR 12.51 (USD 0.22) while it is sold for PKR 22 (USD
0.38). The profit is shared between producing corporations, with PKR 0.66-0.83 (USD
0.011-0.014), and middleman, with PKR 6.66-7.08 (USD 0.116-0.124). By this standard,
the producing corporation makes a profit of 4-5 percent while the middleman makes a
profit of 27-30.55 percent.
In Pakistan’s water market, there are approximately 20 permanent players. Official
figures show an estimated number of 26 corporations, while in summer time, this number
increases up to 70. But from the perspective of quality control, PCRWR (Pakistan
Council of Research in Water Resources) is witnessing a fluctuation in the market of 50
percent, e.g. half of the brands disappear and are replaced by new brands yearly. In
2005, PSQCA (Pakistan Standards & Quality Control Authority) admitted that 200
companies are selling bottled water in Pakistan, but only 27 are registered as
maintaining standards stipulated for the product. Nestlé itself estimates approximately
150 water brands, with only 15 registered under the PSQCA scheme. Regardless of this
data, it is unquestioned that Nestlé controls the majority of the market (over 50 percent)
with its brands “Pure Life”, “AVA” and “Fontalia”.
Stream0
INTRODUCTION:-
Our company “Stream 0” will be incorporated in December 2009. Our plant is situated
in S.I.T.E at Estate Avenue Road in Karachi with the head office at I.I Chundigar Road.
The distinct feature of our company is our unique product which is introduced in
Pakistan for the first time. We have well-equipped and modern plant to ensure strict
monitoring of quality. We practice, conduct, inspect and test all stages of our production.
So our product is strictly in accordance with the quality requirements.
Product availability at all times is our main objective because the best products deserve
the best distribution. Our objective is simply that consumers should have access to our
products when, where and how they want it.
To establish interactive relationships with our customers we bring creativity to our
communication as a complement to more traditional communication opportunities. The
focus of all our communication is to ensure that our product Stream O appeals to today's
consumers, thereby building brand loyalty.
StreamO can be served in parties, functions, exhibitions and educational institutes as a
substitute to cold drinks. It is also a good seasonal drink in the summer. It can be served
there where mothers don’t want their children to have carbonated drinks. It is a very
different kind of product in the local market; therefore, we hope that everybody will try it
at least once.
HEAD OFFICE PLANT
1st
Floor Textile Plaza S.I.T.E Industrial Area.
I.I Chundigar Road Plot# C-23/b, Estates Avenue Road
Karachi Pakistan. Karachi-75160, Pakistan.
Phone no: - 021-5651473 Phone no: - 021-5097847
SITE E-MAIL
www.Stream0.com Stream0@hotmail.com.
Stream0
MISSION STATEMENT
StreamO is the need of the new generation. It is fresh water with fruity
flavors that quenches thirst providing an energetic experience for all.
Our mission is to develop enthusiastically satisfied customers, whose
search for fun and excitement has now come to an end. Stream 0 makes
you feel good, look good and get more out of life. It keeps the heart
young adding colors to your life!
Marketing plan
Marketing plan is a written document that details the necessary actions to achieve one or
more marketing objectives. It can be for a product or service, a brand, or a product line.
Marketing plans cover between one and five years. A marketing plan may be part of an
overall business plan. Solid marketing strategy is the foundation of a well-written
marketing plan. While a marketing plan contains a list of actions, a marketing plan
without a sound strategic foundation is of little use.
It is apparent that a marketing audit can be a complex process, but the aim is simple: "it
is only to identify those existing (external and internal) factors which will have a
significant impact on the future plans of the company." It is clear that the basic material
to be input to the marketing audit should be comprehensive.
Accordingly, the best approach is to accumulate this material continuously, as and when
it becomes available; since this avoids the otherwise heavy workload involved in
collecting it as part of the regular, typically annual, planning process itself - when time is
usually at a premium.
Even so, the first task of this annual process should be to check that the material held in
the current facts book or facts files actually is comprehensive and accurate, and can form
a sound basis for the marketing audit itself.
The structure of the facts book will be designed to match the specific needs of the
organization, but one simple format - suggested by Malcolm McDonald - may be
applicable in many cases. This splits the material into three groups:
1. Review of the marketing environment. A study of the organization's markets,
customers, competitors and the overall economic, political, cultural and technical
environment; covering developing trends, as well as the current situation.
2. Review of the detailed marketing activity. A study of the company's marketing
mix; in terms of the 4 Ps –
Stream0
3. Review of the marketing system. A study of the marketing organization, marketing
research systems and the current marketing objectives and strategies. The last of
these is too frequently ignored. The marketing system itself needs to be regularly
questioned, because the validity of the whole marketing plan is reliant upon the
accuracy of the input from this system, and `garbage in, garbage out' applies with
a vengeance.
 Portfolio planning. In addition, the coordinated planning of the individual
products and services can contribute towards the balanced portfolio.
 80:20 rule. To achieve the maximum impact, the marketing plan must be clear,
concise and simple. It needs to concentrate on the 20 percent of products or
services, and on the 20 percent of customers, which will account for 80 percent of
the volume and 80 percent of the profit.
o 4 P's: Product, Place, Price and Promotion
Micro Environment
The marketing management’s job is to build relationships with the customers by creating
customer value and satisfaction. However marketing managers cannot do this alone. The
figure below shows the major actors in the marketer’s micro environment. Marketing
success will require building relationships with other company departments suppliers,
marketing intermediaries customers, competitors, and various publics which combine to
make up the companies value delivery network
The
company
Suppliers Marketing
Intermediaries
Customers Competitors Publics
The Company:
Marketing
Stream0
In designing marketing plans marketing management takes other company groups into
account groups such as top management finance research and development (R&D)
purchasing, accounts, etc, all these somehow related show work together
Suppliers:
The supply chain that we heavily rely on, to provide us with essential ingredients for
product. Therefore we intend to establish a good and strong relationship with farmers of
orange, lemon strawberry, grapes and mango, make them protect against the buffer stock
by giving them single price which will be applicable in both buffer and shortage
harvesting, this will reduce the fluctuation in their income. In return they will do the
same by giving same price in both cases and this will reduce the variation in profit
margin this may also in the long run help us in getting discounts on purchases and more
relaxed credit terms.
Marketing Intermediaries
Stream0 has opened tenders and has invited different firms to join hands and help us
distribute our products to the most, with this our own company networks would also be
working side by side so that there is no lack of quality in the distribution, and the product
doesn’t falls short at any time. And is visible on shelves at all kinds of big and small
outlets.
Customers
The company needs to study 5 types of customer markets closely.
Consumers Markets: These customers are those customers who directly buy our product
from the retail outlets for personal consumption.
Business markets: Our product is a final product and currently we don’t have any plans
or offers so that our product can be used as a product which can be used in further
processing.
Resellers Markets: Our Company caters the whole sellers as well, if they agree to buy a
bulk quantity and want to serve as marketing intermediaries, and earn while further
reselling. Our company welcomes such customers
Government Markets: Our product is a final product which can be purchased by the
consumer directly so government is not much involved. Although the pricing policies can
be affected as the taxes being imposed every now and then the price of raw materials
increasing can create a problem of low sales for us.
Stream0
International Markets: We have plans to first expand our country wide sales net work
and then by God’s will to first our neighboring countries and then our business plans
consist of Dubai,
Competitors:
StreamO seeks to compete fairly and ethically and within the framework of applicable
competition laws; the company assures that it will not prevent others from competing
with it. We have the pure ingredients with pure water and fresh juice prepared to fulfill
the thrust which its competitor, juice companies couldn’t so it is almost like monopoly,
Our main Competitors in the Market are
NESTLE (Pure Life)

1. PRODUCT
But here, will focus on the bottled waters offered by Nestle. In 1992, Nestlé was the first
company to launch a mineral water, Valvert, in five different countries at once. Nestle
Waters is the world's leading mineral water company by revenues, a key part of the vast
Nestle worldwide portfolio. Although its best-known brands are the two mineral waters
which made up its old name, the company also has a large portfolio of 75 other brands.
Nestlé Waters accounts for almost 10% of the Nestlé Group’s consolidated sales and
manages a portfolio of 77 brands, covering 109 production sites and employing a global
workforce of 27,600.
Pepsi (AQUAFINA)
1. PRODUCT:-
Aquafina is carbonated bottled water produced by PepsiCo.
The water is mainly derived from municipal water supplies that go through an extensive
purification process that includes charcoal filtration, & reverse osmosis.
 And other new players which have entered the water market
 Coca-Cola introduced its drinking water Kinley but its not advertised and
marketed as required.
 Habib Group with its brand First Water and
 Shahi group with its own brand of pure drinking water.
Stream0
INDIRECT COMPETITION
REDBULL ENERGY DRINK
Red Bull is a utility drink to be taken against mental or physical weariness or exhaustion.
Red Bull combines two natural substances and important metabolic transmitters the
amino acid taurine and with stimulating caffeine, vitamins and the energy provided by
carbohydrates. The leader in the energy drinks category.
While our opinion on Red Bull's flavor hasn't changed it is truly painful to drink we will
give Red Bull credit where credit is due. Namely, the brand power that this product has
created is truly amazing. Many people in the industry may hate Red Bull, but without Red
Bull there wouldn't even be a market for the other 150+ products currently crowding the
shelves. However, Red Bull faces some potential bumps in the road. First, the product
has completely oversaturated the market Red Bull is in just about anywhere that you can
fit a mini-cooler as well as mass merchandisers, bike shops, retailers, etc. This could
result in Red Bull becoming passé by removing the "cool" factor that made the brand so
successful.
Finally, given that Red Bull is a one trick pony (compared to others such as Coke and
Pepsi), the party is in serious jeopardy if sales start to slump, a price war starts, or press
over energy drink health concerns start to proliferate (hypothetically speaking). Overall,
it is a tremendous brand power right now.
Publics
The company’s marketing environment also includes various publics. A public is any
group that has a actual or potential interest in or impact on any organization’s ability to
achieve its objectives
1) Financial Publics
The company is mainly self financed by its owners, and stock holders who have a strong
belief in the company. Although a sum of money for the import of the machinery and
international transactions local banks have been involved.
2) Media Publics
All television networks, news papers and radio stations act as media publics for our
company and they are the ones who help build our companies image.
Stream0
3) Government Publics
This means that the company should always account for government rules and
regulations before taking any action, in case the action is against any governmental laws
the company can be fined or shut down depending on the law broken. Therefore the
company has appointed a team of lawyers to handle such issues.
4) Citizen-Action Publics
These groups are such as the human rights groups and the environmental safety groups,
therefore our company has setup a public relations department which helps in all such
regards
5) Local Publics:
These are the people in the neighborhood of the company who represent the area, the
area, issues, meetings, problems etc are discussed by them we have our relations officer
who manages these people and takes part in the societal affairs.
6) General Publics
These are the general people who buy our product, so the company needs to work in all
the above departments so that is has a good image in front of the public and maintains it
so that the people consider their product on the image basis as well.
7) Internal Publics:
These groups include your workers, managers, board of directors and all the employees
of the firm, therefore the company need to keep in mind its force and take all of them
equally. A common way to motivate them is through a monthly newsletter and determine
each and every one, and appreciate them for the good work.
Macro Environment:
Demographic
Factors
Economic
Forces
Natural
Forces
Technological
forces
Political
Forces
Cultural
Forces
Demographic factors
Company
Stream0
These factors include the study of human population in terms of size, density, location,
age, gender, race, occupation and other statistics therefore at strem0 we work for all
such factors and keeps all the demographic factors in mind as our target market.
Economic environment:
The firm believes that profitability is essential for any business to stay in the business.
StreamO believes that this is a measure both of efficiency and the value that the
customers place on Stream0 products and services. Profit is essential to the allocation of
the necessary corporate resources and to support the continuing investment required to
meet consumer needs. Without profits and a strong financial foundation it would not be
possible to fulfill the responsibilities outlined above.
The criteria for investment decisions are not exclusively economic but also take into
account social and environmental considerations and appraisal of the security of the
investment.
Political and Legal environment:
Stream0 acts in a socially responsible manner within the laws of Pakistan in pursuit of its
legitimate commercial objectives. The company does not involve itself in any political
activities of the government but plans to act alongside the government and as a major
stakeholder in many of the government’s long-term and short-term plans. It believes that
this measure would certainly improve the competitive environment of the industry as a
whole and Stream0 would gear up to take this challenge head on.
Cultural environment:
Stream0 is a staunch advocate of having a diverse work force. Its commitment to have a
diverse work force and creating awareness is phenomenal. The company understands
that respecting the Pakistani society and culture is one way of improving trust and loyalty
Stream0
to the company by the employees. The company participates in all the social, cultural and
religious festivals. The company gives holidays on religious festivals.
Technological environment:
StreamO is striving to compete in the dynamic environment. One of its major goals is to
keep pace with the ever-changing technological environment. StreamO is developing new
techniques and implementing new technologies to gain an advantage over its
competitors. To achieve excellence in form of high quality, low waste and less labor
requirement Sream0 has the state of the art reverse Osmosis Systems Installed so that the
water being used is the best water. And the energy level is optimum.
Natural Environment:
StreamO considers that all the ingredients needed for manufacturing our product i.e.
these drinks are readily available at reasonable rates. Another factor that may come to
mind here is that in the recent past there was a problem of interprovincial export of
supplies. We have countered this situation by directly opting for building a strong
relationship with our suppliers.
Market Segmentation
DEMOGRAPHICS AND PSYCHOGRAPHICS
CHARACTERISTICS OF Stream0:-
"The marketer should stop thinking of his customers as part of some massively
homogeneous market. He must start thinking of them as numerous small islands of
distinctiveness, each of which requires its own unique strategies in product policy, in
promotional strategy, in pricing, in distribution methods, and in direct selling
techniques."
T. Levitt
DEMOGRAPHIC CHARACTERISTICS OF StreamO:-
Demographics concern the measurement of the population. Demographic segmentation
involves dividing the market into groups based on demographic variables such as:
Stream0
 Age;
 Gender;
 Family life cycle;
 Income;
 Occupation;
 Education;
 Religion;
 Nationality
In accordance to our product, demographic segmentation entails segmentation based on
age and life cycle, also including gender, income and population based segmentation. All
these methods of segmentation will help us to perceive our target market more effectively,
keeping in mind the markets we will cater to. Since StreamO is an energy drink, let us
look onto its demographic variables:
1. AGE AND LIFE CYCLE :-
We understand the fact that our consumers go through different phases in life and their
choices differ at different stages. Our main target for our product is, however, the
teenagers-the new upcoming generation but also the young adults ranging from 20-28 yrs
of age. For their particular needs, we have introduced water in different flavors in bottles
of different sizes that can be carried comfortably.
Buying is also shaped by the stage of the family life cycle. For example, a young father
(aged 27) with a family of three would prefer water that is more different and refreshing
providing a new different taste giving him a sense of freedom from a life full of
responsibilities.
For our product, the family life we will concentrate on would be:
 young singles
 young married, no children
 married, young children
2. GENDER SEGMENTATION :-
For a product, such as flavored water, it is not necessary to dissect the target market by
gender. Water, is consumed by both males and females alike.
We have to be really vigilant when segmenting because using a single demographic
variable, such as age and/or gender in isolation can be misleading. For example, a 21
year old male could be a full-time student, a professional, or a father with small children
etc. Depending upon their circumstance, they would have quite different needs and
wants. Therefore, a multivariate segmentation approach based on a mixture of variables
Stream0
such as gender, age and family life-cycle (age and lifecycle segmentation) would be far
more useful for segmenting the market for our water product.
3. INCOME SEGMENTATION:-
StreamO has been priced effectively at PKR 20 and 30. We know that a person’s
economic situation will affect his/her product choice. Although our market is mainly
targeted at the upper class but our product is priced such that is can also be conveniently
afforded by middle class and upper middles. This shows that we target consumers with
more modest means.
Income Segments: Rs. 8,000-10,000
Rs. 10,000-15,000
Rs. 15,000-20,000
Rs. 21,000-35,000
Rs. 40,000 and above
Talking about the teenager section of the society, StreamO has been designed keeping
their pockets and needs in mind. Although most teenagers from 12-17 years do not earn
themselves and are solely dependent on their pocket money, StreamO has been priced to
attract them and in a manner that they do not find it over-priced.
4. Occupation
May it be business man fathers, house wife moms, working ladies, students, Stream0 is
meant for all without any restriction of your occupation.
5. Race
Stream0 is for the people, it’s a drink to vitalize you, give you energy in a pure form in
less price, and being natural, its not restricted to any race or a specific group of people.
6. Religion
Stream0 is not restricted to any religion and being a product of a (Muslim) country the
product is purely Halal, (Certified) and all ingredients used are properly tested certified.
And are fit to be used by all kinds of people. Belonging to any religion
GEOGRAPHICAL LOCATION:-
Geo-demographic Techniques-This approach to segmentation combines a number of
variables such as where a customer lives, size of family, and so on. They are particularly
relevant to the location and development of hospitality/tourism operations such as pubs,
restaurants, leisure facilities. One approach to geo-demographic segmentation using,
geographic, cultural, socio economic and other factors is 'A Classification of Residential
Neighborhoods.'
Stream0
StreamO will be introduced in all major cities of Pakistan. They include Karachi, Lahore
and Islamabad. We have selected these cities on the basis of dense population. Due to
high population rates in these areas as compared to cities like Rawalpindi and
Hyderabad, we expect a high return on sales and a substantial feedback from these cities.
These cities are also divided into different areas where StreamO will be available like
KDA, Nazimabad and Defense etc where there is mix blend of elite and upper middles
which are our prime target market
1. Density
Stream0 is a product for all classes races, and all kinds of people, it is a product
substitute to all kinds of liquid drinks, i.e. water, drinks, juices, and still has the purity of
water and the energy of a energy drink. Therefore the product is available to the masses
despite of discriminating it by the Density of Population
2. Location
Location is a very big factor for promoting our product but the company intends to
spread the product country wide, starting large cities such as Karachi Lahore and
Islamabad. And then adjoining small cities and villages, then gradually increasing
distributors in the whole country.
3. Climate
As the drink is a substitute to water and all other drinks the product caters a mass market
of the hot climate areas, although the product would be available in the northern
Pakistan. But initially starting the product campaign it would be targeted to cut down the
heat. And finish your thrust.
Psychographic Factors
1. Life Style
The product is priced very reasonably therefore accessible to all income classes,
therefore people who use Stream0 would have a life style of a normal Pakistani, who
wants to vitalize himself with a premium quality local originated drink.
2. Social Class
As the people would get to know about the product people would refer the product to
others also this way the people living in social classes would start to get to know about
the product and the product would be in the eyes off people
Behavioral Factors.
Occasion: Stream0 has been targeted as a energy drink and as well as a refreshing drink
therefore it can be substituted to soft drinks as well as water. Because of which the
product can be used for parties and festivals and as well as a daily drinking product to
fulfill ones needs
Stream0
BENEFITS OUR TARGET MARKET SEEKS
The target market of Stream0 is teenagers and young adults who form a large market
segment of flavored and energy drinks. Our ideal target market is of people of age 11-
25. People younger than 11 are not mature enough to buy products themselves. They
are mostly fed according to their parents’ choice. Their routine is usually not that
hectic as compared to 11-25 to consume energy drinks.
People aged more than 25 usually do not buy energy drinks as according they do not
need to acquire energy through these artificial means. Another major reason is that
these older people have diseases like heart problems, abnormal blood pressure and
weaker bones. So they have to be very particular about what they eat. Hence the target
market we have chosen of young people is ideal for our product: StreamO!
Consumer Buying Behavior
1. Cultural
“Culture is the most basic cause of a person’s wants and behaviors’”
As Strem0 is a new product and the people would take time to admire it and adopt it this
is a very good time to introduce the product people are getting health cautious day by
day and are avoiding soft drinks and shifting towards other alternative Stream0 being the
second best thing next to water, and being water with flavors is a innovative idea for all
the consumers, so this would bring a cultural change and we expect a large number of
people to get adapted to the product very soon.
2. Social
Social factors include the reference groups you sit in the social clubs you are related to
and the roles and statues therefore at Stream0 we know that the consumer wants only the
best that’s why we have set a up a distribution channel which assures a distribution that
reaches each and every person and every individual gets holds of Stream0 and gets it
where ever they want it.
3. Personal
Personal Influences
Age life Cycle Occupation Economic
Situation
Personality and
Self Concept
Age and Life Cycle.
Stream0
As the product is simple water with added natural flavors there should be no issue for it
to be used by any age limit, although the old people would take a little longer to get
adopted to the product but the product is targeted for all the age groups.
Occupation:
A person’s occupation affects the goods and services bought. Our product is a daily
house hold use product and is priced very reasonably which can be afforded by all kinds
of income groups starting a salary figure of Rs.1000 or even less then that a single bottle
of Stream0 500mg is affordable to anyone who wants to get rid of his thrust
Economic Situation
Economic situation is also a very big factor in choosing the product for this marketers
launch the same product in different sizes to cater all types of markets. But at StreamO
we have initially 2 sizes of our product 500ml and 1L which is going to be sold at a very
reasonable rate and affordable for all income classes
Personality & Self Concept
A person’s personality can be challenging to overcome if a person is not at all in flavors
of bottled water our product is not for such consumers we need a separate marketing
strategy for such consumers. For such customers we need to show the customers that
brands also carry personalities at Stream0 different flavors of stream0 are created to
cater the different personalities and different kinds of people.
Product life cycle
Stream0
The product life cycle goes through multiple phases, involves many professional
disciplines, and requires many skills, tools and processes. Product life cycle (PLC) has to
do with the life of a product in the market with respect to business/commercial costs and
sales measures; whereas product life cycle management (PLM) has more to do with
managing descriptions and properties of a product through its development and useful
life, mainly from a business/engineering point of view. To say that a product has a life
cycle is to assert four things:
 that products have a limited life,
 product sales pass through distinct stages, each posing different challenges,
opportunities, and problems to the seller,
 profits rise and fall at different stages of product life cycle, and
 Products require different marketing, financial, manufacturing, purchasing, and
human resource strategies in each life cycle stage.
The different stages in a product life cycle are:
Stage Characteristics
1. Market
introduction stage
1. costs would be high
2. slow sales volumes to start
3. Little or no competition - competitive manufacturers watch
for acceptance/segment growth losses.
4. demand has to be created
5. customers have to be prompted to try the product
6. makes no money at this stage
2. Growth stage
 costs reduced due to economies of scale
 sales volume increases significantly
 profitability begins to rise
 public awareness increases
 competition begins to increase with a few new players in
establishing market
 increased competition leads to price decreases
3. Mature stage
 costs are lowered as a result of production volumes
increasing and experience curve effects
 sales volume peaks and market saturation is reached
 increase in competitors entering the market
 prices tend to drop due to the proliferation of competing
products
 brand differentiation and feature diversification is
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emphasized to maintain or increase market share
 Industrial profits go down
4. Saturation and
decline stage
 costs become counter-optimal
 sales volume decline or stabilize
 prices, profitability diminish
 profit becomes more a challenge of
production/distribution efficiency than increased sales
Therefore the company knows that we are a new product with a new idea in the market
we will have to promote it a lot and people to use our product,
This way brand awareness would arose and Stream 0 like any other drink would take
over the market and would lead itself to the maturity stage
However we at Stream 0 understand that every brand has decline stage for this we have
planned to renew and bring changes in the stream 0 as required time to time i.e. we plan
to introduce our Water in several other flavors’ and packaging in the near future.
Request for Deviation
In the process of building a product following defined procedure, an RFD is a request for
authorization, granted prior to the manufacture of an item, to depart from a particular
performance or design requirement of a specification, drawing or other document, for a
specific number of units or a specific period of time. ....
Market Identification
A "micro-market" can be used to describe a Walkman, more portable, as well as
individually and privately recordable; and then Compact Discs ("CDs") brought
increased capacity and CD-R offered individual private recording...and so the process
goes. The below section on the "technology lifecycle" is a most appropriate concept in
this context. Most of the context is not in English so you may need a translator.
In short, termination is not always the end of the cycle; it can be the end of a micro-
entrant within the grander scope of a macro-environment. The auto industry, fast-food
industry, petro-chemical industry, are just a few that demonstrate a macro-environment
that overall has not terminated even while micro-entrants over time have come and gone.
Lessons of the product life cycle (PLC)
It is claimed that every product has a life period, it is launched, and it grows, and at
some point, may die. A fair comment is that - at least in the short term - not all products
or services die. Jeans may die, but clothes probably will not. Legal services or medical
services may die, but depending on the social and political climate, probably will not.
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Even though its validity is questionable, it can offer a useful 'model' for managers to keep
at the back of their mind. Indeed, if their products are in the introductory or growth
phases, or in that of decline, it perhaps should be at the front of their mind; for the
predominant features of these phases may be those revolving around such life and death.
Between these two extremes, it is salutary for them to have that vision of mortality in
front of them.
However, the most important aspect of product life-cycles is that, even under normal
conditions, to all practical intents and purposes they often do not exist (hence, there
needs to be more emphasis on model/reality mappings). In most markets the majority of
the major brands have held their position for at least two decades. The dominant product
life-cycle, that of the brand leaders which almost monopolize many markets, is therefore
one of continuity.
In the criticism of the Product life cycle, Dhalla & Yuspeh state:
The PLC is a dependent variable which is determined by market actions; it is not an independent
variable to which companies should adapt their marketing programs. Marketing management
itself can alter the shape and duration of a brand's life cycle.
Thus, the life cycle may be useful as a description, but not as a predictor; and usually
should be firmly under the control of the marketer. The important point is that in many
markets the product or brand life cycle is significantly longer than the planning cycle of
the organizations involved. Thus, it offers little practical value for most marketers. Even
if the PLC (and the related PLM support) exists for them, their plans will be based just
upon that piece of the curve where they currently reside (most probably in the 'mature'
stage); and their view of that part of it will almost certainly be 'linear' (and limited), and
will not encompass the whole range from growth to decline.
Limitations
The PLC model is of some degree of usefulness to marketing managers, in that it is based
on factual assumptions. Nevertheless, it is difficult for marketing management to gauge
accurately where a product is on its PLC graph. A rise in sales per area is not
necessarily evidence of growth. A fall in sales per area does not typify decline.
Furthermore, some products do not (and to date, at the least, have not) experienced a
decline. Coca Cola and Pepsi are examples of two products that have existed for many
decades, but are still popular products all over the world. Both modes of cola have been
in maturity for some years.
Another factor is that differing products would possess different PLC "shapes". A fad
product would hold a steep sloped growth stage, a short maturity stage, and a steep
sloped decline stage. A product such as Coca Cola and Pepsi would experience growth,
but also a constant level of sales over a number of decades. It can probably be said that a
given product (or products collectively within an industry) may hold a unique PLC shape,
and the typical PLC model can only be used as a rough guide for marketing management.
This is why it’s called the product life cycle.
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 New product development
In business and engineering, new product development (NPD) is the term used to
describe the complete process of bringing a new product or service to market. There are
two parallel paths involved in the NPD process: one involves the idea generation,
product design, and detail engineering; the other involves market research and
marketing analysis. Companies typically see new product development as the first stage
in generating and commercializing new products within the overall strategic process of
product life cycle management used to maintain or grow their market share.
The process
1. Idea Generation is often called the "fuzzy front end" of the NPD process
o Ideas for new products can be obtained from basic research using a SWOT
analysis (Strengths, Weaknesses, Opportunities & Threats), Market and
consumer trends, company's R&D department, competitors, focus groups,
employees, salespeople, corporate spies, trade shows, or Ethnographic
discovery methods (searching for user patterns and habits) may also be used
to get an insight into new product lines or product features.
o Idea Generation or Brainstorming of new product, service, or store concepts -
idea generation techniques can begin when you have done your
OPPORTUNITY ANALYSIS to support your ideas in the Idea Screening
Phase (shown in the next development step).
2. Idea Screening
o The object is to eliminate unsound concepts prior to devoting resources to
them.
o The screeners must ask at least three questions:
 Will the customer in the target market benefit from the product?
 What is the size and growth forecasts of the market segment/target market?
 What is the current or expected competitive pressure for the product idea?
 What are the industry sales and market trends the product idea is based on?
 Is it technically feasible to manufacture the product?
 Will the product be profitable when manufactured and delivered to the
customer at the target price?
3. Concept Development and Testing
o Develop the marketing and engineering details
 Who is the target market and who is the decision maker in the purchasing
process?
 What product features must the product incorporate?
 What benefits will the product provide?
 How will consumers react to the product?
 How will the product be produced most cost effectively?
 Prove feasibility through virtual computer aided rendering, and rapid
prototyping
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 What will it cost to produce it?
o Testing the Concept by asking a sample of prospective customers what they
think of the idea. Usually via Choice Modeling.
4. Business Analysis
o Estimate likely selling price based upon competition and customer
feedback
o Estimate sales volume based upon size of market and such tools as the
Fourt-Woodlock equation
o Estimate profitability and breakeven point
5. Beta Testing and Market Testing
o Produce a physical prototype or mock-up
o Test the product (and its packaging) in typical usage situations
o Conduct focus group customer interviews or introduce at trade show
o Make adjustments where necessary
o Produce an initial run of the product and sell it in a test market area to
determine customer acceptance
6. Technical Implementation
o New program initiation
o Resource estimation
o Requirement publication
o Engineering operations planning
o Department scheduling
o Supplier collaboration
o Logistics plan
o Resource plan publication
o Program review and monitoring
o Contingencies - what-if planning
7. Commercialization (often considered post-NPD)
o Launch the product
o Produce and place advertisements and other promotions
o Fill the distribution pipeline with product
o Critical path analysis is most useful at this stage
8. New Product Pricing
o Impact of new product on the entire product portfolio
o Value Analysis (internal & external)
o Competition and alternative competitive technologies
o Differing value segments (price, value, and need)
o Product Costs (fixed & variable)
o Forecast of unit volumes, revenue, and profit
These steps may be iterated as needed. Some steps may be eliminated. To reduce the time
that the NPD process takes, many companies are completing several steps at the same
time (referred to as concurrent engineering or time to market). Most industry leaders see
new product development as a proactive process where resources are allocated to
identify market changes and seize upon new product opportunities before they occur (in
contrast to a reactive strategy in which nothing is done until problems occur or the
competitor introduces an innovation). Many industry leaders see new product
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development as an ongoing process (referred to as continuous development) in which the
entire organization is always looking for opportunities.
For the more innovative products indicated on the diagram above, great amounts of
uncertainty and change may exist, which makes it difficult or impossible to plan the
complete project before starting it. In this case, a more flexible approach may be
advisable.
Because the NPD process typically requires both engineering and marketing expertise,
cross-functional teams are a common way of organizing projects. The team is responsible
for all aspects of the project, from initial idea generation to final commercialization, and
they usually report to senior management (often to a vice president or Program
Manager). In those industries where products are technically complex, development
research is typically expensive, and product life cycles are relatively short, strategic
alliances among several organizations helps to spread the costs, provide access to a
wider skill set, and speeds the overall process.
Also, notice that because engineering and marketing expertise are usually both critical to
the process, choosing an appropriate blend of the two is important. Observe (for
example, by looking at the See also or References sections below) that this article is
slanted more toward the marketing side. For more of an engineering slant, see the Ulrich
and Eppinger, Ullman references below.
People respond to new products in different ways. The adoption of a new technology can
be analyzed using a variety of diffusion theories such as the Diffusion of innovations
theory.
A new product pricing process is important to reduce risk and increase confidence in the
pricing and marketing decisions to be made. Bernstein and Macias describe an
integrated process that breaks down the complex task of new product pricing into
manageable elements.
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MARKETING MIX
PRODUCT
QUALITY OF Stream O:-
Stream O is a unique product; pure and transparent water with a blend of fresh fruity
flavors. It is ideal for quenching thirst and the need of the hour. It is made for the youth
of today who are always on the run and need energy in all fields of their life; be it sports,
studies or party with friends. This product is made with care, ensuring quality at its best.
The process of manufacturing this product involves taking pure water from our plants
which have been imported from Germany and are one of the best in the world and also is
quality certified by the International Standardization Organization (ISO) and then adding
fruity flavors to it from the fresh fruits picked at our own farms.
DESIGN AND PACKAGING OF StreamO:-
StreamO is a unique product with a design which will amaze all. It is a long, cylindrical,
and transparent water bottle with embossed waves on it, depicting energy of our drink. It
will be available in two sizes: of 500 ml and 1.5 liters. 500 ml will be sold mostly in
schools, colleges and universities and 1.5 liters will be available in general stores and
super markets, which can be used at homes. The cap will be undetectable and its color
will be indicating the fruity flavor.
The bottle will contain all the necessary information for the consumers; the name of the
product, its symbol and the tag line. It will enlist the size of the bottle.
Ingredients will also be mentioned on the bottles which are:-
Pure Water
Natural Fruity flavors
Calcium chloride
Magnesium Sulphate
Magnesium chloride
Potassium bicarbonate
Sodium chloride
Natural Fruity flavors
Preservatives
The water bottle will be made of plastic so it can be easily recyclable and its sign will be
shown on the bottle. A symbol of “keep the city clean” of a man throwing litter in the
dustbin will be shown so that this habit is inculcated in the teenagers of our country.
VARIETY OF Stream O:-
Stream0
Stream0 comes in a variety of flavors which have been carefully chosen keeping in mind
the taste of our target market. The fruity flavors offered are strawberry, lemon, grapes,
mango and orange which will cater needs of our consumers having different tastes, likes
and dislikes. Great care is taken to ensure that the freshness and essential vitamins of the
fruits are stored and no good is gone to waste. Even the preservatives added to the water
are laboratory tested and approved by the government to be edible and healthy.
Our Flavors
1. StreamO Original
The Original ( Orange )
2. Stream O Raspberry
Sparkling natural mineral water with Raspberry natural
flavors.
3. StreamO Leachy
Combine the strength of the Stream0 bubbles and the
thrill of natural lemon.
4. StreamO Apple
The perfect combination of bubbly water refreshment and
Apple essence.
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Ingerdients.
 Aqua Pure water
 Natural Fruity flavors
 Calcium chloride
 Magnesium Sulphate
 Magnesium chloride
 Potassium bicarbonate
 Sodium chloride
 Natural Fruity flavors
 Preservatives
500ml
Strem0 Raspberry
Strem0 Ice Cream Soda
Stream0 Apple
Stream0 Leachy
Stream 0
Purity - redefined
Stream 0
Purity - redefined
Stream 0
Purity - redefined
Stream 0
Purity - redefined
Stream 0
Purity - redefined
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BRAND NAME:-
The brand name we have chosen is “StreamO” and our tag line is “Purity redefined”
The name has been thought of after keeping the target market in mind. After looking
through many alternatives which depict the youth’s lifestyle, the name Stream0 was
chosen. Stream symbolizes hip, happening, fashion and funk. It is also feasible as our
drink contains energy which will be provided by our fruit flavored drink. The name
Stream will appeal to everyone, especially teenagers as it is different.
ADDITIONAL FEATURE OF StreamO:-
Stream O is pure and distilled water, considered being 99.99% pure. It has been shown
through a study that majority of mineral water bottles available in Pakistan are not up to
the drinking standards as required by international institutes for health of human beings.
But our product is tested on hygiene levels and is considered to meet the standards of
such institutes.
PRICING
Pricing is a fundamental aspect of financial modeling, and is one of the four Ps of the
marketing mix. The other three aspects are product, promotion, and place. It is also a key
variable in microeconomic price allocation theory. Price is the only revenue generating
element amongst the four Ps, the rest being cost centers. Pricing is the manual or
automatic process of applying prices to purchase and sales orders, based on factors such
as: a fixed amount, quantity break, promotion or sales campaign, specific vendor quote,
price prevailing on entry, shipment or invoice date, combination of multiple orders or
lines, and many others. Automated systems require more setup and maintenance but may
prevent pricing errors.
Promotional pricing refers to an instance where pricing is the key element of the
marketing mix.
Premium pricing (also called prestige pricing) is the strategy of consistently pricing at,
or near, the high end of the possible price range to help attract status-conscious
consumers. A few examples of companies which partake in premium pricing in the
marketplace include Rolex and Bentley. People will buy a premium priced product
because:
1. They believe the high price is an indication of good quality;
2. They believe it to be a sign of self worth - "They are worth it" - It authenticates
their success and status - It is a signal to others that they are a member of an
exclusive group;
3. They require flawless performance in this application - The cost of product
malfunction is too high to buy anything but the best - example: heart pacemaker.
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PRICING STRATEGY:-
For setting the price of our new product we will use the marketing penetration strategy,
where we will keep our prices low to attract early customers. Thus our price will be
similar to the prices of pure mineral water bottles. The total price we will charge for our
product will be:
 500 ml bottle: Rs 15 and retailer margin Rs 5 (Rs. 20) (sales 250,000 bottles).
 Cost of Bottle Rs. 5
 Cost of Water Rs. 3
 Cost of additional flavor Rs. 2
 Cost of packing Rs. 1
 Profit to the company Rs. 4
 Total Cost Rs 15
1000 ml bottle Rs 25 and retailer margin Rs 5 (Rs. 30) (sales 200,000 bottles)
 Cost of Bottle Rs. 7
 Cost of Water Rs. 6
 Cost of additional flavor Rs. 4.5
 Cost of packing Rs. 2.5
 Profit to the company Rs. 5
 Total Cost Rs 25
As our product is new there is no discount, credit terms, allowance and payment period
strategies given yet except in the following cases:-
1) If the order exceeds more than 1000 bottles purchased from the company then Rs.2
discount will be given per bottle.
2) Our retailers can purchase our bottles on 35% credit and 2 months payment period
will be given (without interest) for the payment of the remaining balance. This is done to
attract retailers and wholesalers to buy our product.
3) Advertising discounts would also be offered to retailers so that if they advertise our
product in their shops the discounts would be offered to advertising sizes
4) Training program is also lined up so that all the retailers are trained and informed
about the benefits of Stream0 and that how is it better than other products available in
the market. Therefore they can further inform their customers about the product.
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PLACE
As our product Stream0 is for the masses we will ensure it is available in all localities so
that our customers have easy access to it. After bottling the drink it will be stored in our
company warehouses which will be in the premises of our company.
DISTRIBUTION CHANNELS:-
The product will be initially launched in 3 major cities of Pakistan:-
Karachi
Lahore
Islamabad
In these cities for proper placement of our product first a distribution and transport
department will be set up. The departments will be present in the following areas:-
Karachi: - S.I.T.E
Lahore: - Gulberg
Islamabad: - Sector E,
And then later add on
Quetta: Saddar Bazar
The head office will be situated in Karachi, and 3 subsidiary offices would be set up in
other 3 cities which will be headed by an expert placement manager who will direct the
remaining 3 assistant managers in other cities. Each distribution and transport
department will comprise a team of 20 transport agents and 50 workers and drivers, who
will have the responsibility to transport the product from the company’s warehouse to the
desired location in different cities of the country and evenly distribute it among the
wholesalers and retailers. The transport agents will also be required to keep a check on
the drivers and workers, who will transport, load and unload our product.
Our customers will be given a choice either to purchase our product from the retailers
and wholesalers present or in case of a large order (at least one truck) they can directly
contact the company:-
Contact number for order:-
Karachi 021-5093989
Lahore 042-5751439
Islamabad 051-2254679
Transportation cost of Rs. 10,000 per truck will be charged. (on personal orders.)
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Our drink will be available in all areas just as any other soft drink or mineral water
bottle but more emphasis will be laid on the densely populated areas of each city
In all the localities our product will be available at:-
 Educational institutes.
 In all major super markets.
 Gyms
 Clubs
 Parks
 Restaurants
 Cafes
 Cinemas
 Small retail shops
 Hotels
In super markets and large stores our drink will be placed on eye-level shelves so that it
is easily noticed and purchased by the customers. In addition our company will ensure
that the product is available at all the destinations mentioned above at all times so as to
maintain the goodwill of the company.
PROMOTION
The media vehicles to be used in promoting the Stream0 will be:-
1. Television
2. Radios
3. News Paper
TELEVISION:-
A burst strategy is proposed for the product at the launch.
Burst strategy is when the selected channels are bombarded with advertisement for few
weeks. For our product, it will be for 7 weeks next year, starting from last 2 weeks of
December to 1st week of January because this would be the best time to launch our
product. As our main focus is advertisement on TV so we have selected Shahid Afridi as
our brand ambassador for the product as he symbolizes energy and excitement which
reflects the soul of Stream0.
The channels that we have selected are:
 GEO (to attract a mature buyer)
 MTV PAKISTAN ( to attract the youth)
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 INDUS NETWORK ( to attract the female gender)
 CARTOON NETWORK ( to attract the kids)
 GEO SUPER (to attract the excitement in the youth and the energy)
RADIO:-
All major radio channels are to be advertised on, at the initial period after word the
channels giving us the best deals would remain our media partners and we leave the rest.
HOARDINGS:-
Hoardings will be placed in major areas of each City of Pakistan that’s why we are
targeting the major cities of all the provinces of Pakistan so that we could target a large
market at the same time.
Billboards:
Billboards are a more superior means of advertising for SnacShack®, because not only is
it more cost-effective, but also hard to miss. A television commercial in most cases is
unnoticed or overlooked since most viewers tend to channel surf between their favorite
shows rather than sit and watch all advertisements attentively. A well placed billboard
along well chosen roads can be seen by potential customers sometimes at least once in a
week or at most two to three a day.
SPONSORSHIPS AND PROMOTION:-
The strategies of sponsoring different sporting events those are due to be held in the time
of launch or particularly next year are:
 We are going to sponsor the major event of world cup 2011 and all the channels
will be airing our television commercial. We are going to contact the Pakistan
Cricket Board (PCB) for sponsoring the Pakistan cricket team with our logo on
their kits and to use our water during drink breaks.
 We are going to sponsor different sporting events like our national game hockey,
volley ball, badminton tournaments, etc
 Company on its own will be organizing different events itself i.e. organizing the
bicycle race, swimming, badminton, football matches etc.
By organizing these events we will be creating an image that we are promoting neglected
sports in Pakistan. Other activities promoting societal benefit will also be organized.
DIRECT MARKETING:-
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Our sampling team will be set up in the major three cities of Pakistan and they are going
to give away free samples to people to create awareness of our product.
The emphasis is going to be given to the following:
 Schools/ Colleges
 Universities
 Clubs
 Gymkhana
 Supermarkets like Agha’s, Astras, Ebco, Ami’s, Makro, ,etc.
BTL (BELOW THE LINE ACTIVITIES)
All the major super markets will display our products on their shelves and POS (point of
sales) material and the markets will be decorated so that everyone that enters the store
gets to know what craze2o is all about. Apart from this, our sampling team will be placed
outside the market giving away free samples.
Another thing that the company will give emphasis to will be, SOCIETAL MARKETING
i.e.-The Company will also organize few sporting events for the disabled people like
marathon, blind cricket and other sporting activity.
The company will give away free samples to areas that are very poor and don’t have pure
water to drink.
The company will have around 10% of its promotional budget for societal marketing. The
company will also help the people in earthquake affected areas of Pakistan and if the
product is going to be launched internationally then in every such circumstances of other
countries.
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Sales Forecast for the Next three Years
2010 2011 2011
Sales 250,000 units 300,000 400,000 units
Market Share 10% 12% 15%
Budget for 2010
Projected Sales 900,000
Profit 0
Total expenses: 100% 700,000
Cost of goods Sold 61% 427,000
Administration 39% 273,000
Administration & Marketing 100% 500,000
Administration 14.3% 70,650
Marketing 85.7% 429350
Marketing 100% 400,000
Distribution 23% 92,000
Promotion 77% 308,000
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Promotional Budget
Total Budget 100% 210,000
Sales Promotion 35% 70,000
Advertising 60% 130,000
Contingency 5% 10,000
Advertising Budget 100% 1,000,000
Television 5% 50,000
Outdoor Media (Billboards) 65% 650,000
Mobiles and banners 20% 200,000
Miscellaneous 10% 100,000
DIVERSIFICATION:-
Diversification is a strategy for a company’s growth that involves offering new products
to a complete new market segment. In other words, diversification means setting up a
business outside the company’s current products and markets.
For our product, StreamO, the best marketing strategy would be diversification. As it is a
new product, its customers do not exist and neither does its market. We are not really
diversifying but we are setting up a new business of a new product. This product is first of
its kind in Pakistan. Transparent water with fruity flavors is a new concept in this
country.
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Marketing strategy
Marketing strategy is a method of focusing an organization's energies and resources on a
course of action which can lead to increased sales and dominance of a targeted market
niche. A marketing strategy combines product development, promotion, distribution,
pricing, relationship management and other elements; identifies the firm's marketing
goals, and explains how they will be achieved, ideally within a stated timeframe.
Marketing strategy determines the choice of target market segments, positioning,
marketing mix, and allocation of resources. It is most effective when it is an integral
component of overall firm strategy, defining how the organization will successfully
engage customers, prospects, and competitors in the market arena. Corporate strategies,
corporate missions, and corporate goals. As the customer constitutes the source of a
company's revenue, marketing strategy is closely linked with sales. A key component of
marketing strategy is often to keep marketing in line with a company's overarching Basic
theory:
1. Target Audience
2. Proposition/Key Element
3. Implementation
Tactics and actions
A marketing strategy can serve as the foundation of a marketing plan. A marketing plan
contains a set of specific actions required to successfully implement a marketing strategy.
For example: "Use a low cost product to attract consumers. Once our organization, via
our low cost product, has established a relationship with consumers, our organization
will sell additional, higher-margin products and services that enhance the consumer's
interaction with the low-cost product or service."
A strategy consists of a well thought out series of tactics to make a marketing plan more
effective. Marketing strategies serve as the fundamental underpinning of marketing plans
designed to fill market needs and reach marketing objectives. Plans and objectives are
generally tested for measurable results.
A marketing strategy often integrates an organization's marketing goals, policies, and
action sequences (tactics) into a cohesive whole. Similarly, the various strands of the
strategy , which might include advertising, channel marketing, internet marketing,
promotion and public relations can be orchestrated. Many companies cascade a strategy
throughout an organization, by creating strategy tactics that then become strategy goals
for the next level or group. Each one group is expected to take that strategy goal and
develop a set of tactics to achieve that goal. This is why it is important to make each
strategy goal measurable.
Marketing strategies are dynamic and interactive. They are partially planned and
partially unplanned.
Stream0
Marketing strategies may differ depending on the unique situation of the individual
business. However there are a number of ways of categorizing some generic strategies. A
brief description of the most common categorizing schemes is presented below:
 Strategies based on market dominance - In this scheme, firms are classified based on
their market share or dominance of an industry. Typically there are four types of
market dominance strategies:
o Leader
o Challenger
o Follower
o Nicher
 Porter generic strategies - strategy on the dimensions of strategic scope and strategic
strength. Strategic scope refers to the market penetration while strategic strength
refers to the firm’s sustainable competitive advantage. The generic strategy
framework (porter 1984) comprises two alternatives each with two alternative
scopes. These are Differentiation and low-cost leadership each with a dimension of
Focus-broad or narrow.
o Product differentiation
o Market segmentation
 Innovation strategies - This deals with the firm's rate of the new product development
and business model innovation. It asks whether the company is on the cutting edge of
technology and business innovation. There are three types:
o Pioneers
o Close followers
o Late followers
 Growth strategies - In this scheme we ask the question, “How should the firm grow?”
There are a number of different ways of answering that question, but the most
common gives four answers:
o Horizontal integration
o Vertical integration
o Diversification
o Intensification
Stream0
SWOT ANALYSIS
STRENGTHS
 Good management.
 Abundant and cheap labor.
 Modern machinery.
 Good marketing strategies.
 Product’s uniqueness.
 Convenient transport facilities near our plant.
WEAKNESSES
 New product.
 Price might be too high for the customers.
 Unskilled labor.
 Requirement for training program of labor.
 High labor turnover.
 Monotonous job routines.
OPPORTUNITIES
 Health conscious consumers
 Product launch in summer.
 Vast market.
 No immediate competitors
 Established goodwill of nestle.
 Great profit expectancy.
 Everlasting demand for beverages
THREATS
 Juices, Mineral waters, Red Bull, Nestle, AquaFina etc.
 Well-established market of non-immediate competitors.
 Large scale marketing required to create awareness among consumers.
 Change in government policies
Stream0
CONCLUSION:-
We are launching flavored water in Pakistan for the first time,
which is a risk, but it is said that no business can flourish without
taking a risk and giving it a shot. We have designed our product
very carefully keeping the needs of the upcoming generations in
mind. All the strategies have been designed by putting in an extra
effort and great thought and hard work.
We hope that our product, StreamO, passes the introductory stage
successfully and its maturity and growth stage occupies a long
period, making the product a cash-cow from an initial star with
increasing profits at every mile of the journey. We launch our
product with an aim to make it an internationally-recognized
brand such that our loyal consumers think of fun and energy
whenever they hear the name; StreamO!
Stream0
References and Sources for the completion of this Report
www.google.com. (For images, theory, and other material).
http://en.wikipedia.org/wiki/Marketing_plan
http://www.nestle.pk/pure_life/why-water.aspx
PSQCA (Pakistan Standards & Quality Control Authority)
PCRWR (Pakistan Council of Research in Water Resources)

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Product relaunch drink

  • 2. Stream0 Contents  Industrial Background  Introduction  Mission Statement  Micro Environment  Competitors  Macro Environment  Market Segmentation  Consumer Buying Behavoiur  Product Life Cycle  New Product Development  Marketing Mix  Flavours and Branding  Pricing  Place 1. Distribution Channels  Promotion  Sales Forecast  Financial Reports  Marketing Strategies  SWAT analysis  Conclusion  References to complete the report.
  • 3. Stream0 INDUSTRIAL BACKGROUND BOTTLED WATER MARKET IN PAKISTAN:- “Bottled water is considered as a source of clean water. It is often the consumers’ choice for a healthy beverage that gives them a source of minerals, helps to prevent obesity, and in so doing, reduces the risk of associated healthcare problems.” Why Water Our health depends on many things. One of the most important is water. Pure, safe and healthy water is vital for maintaining your health and everything around you. It is the drink of a good wholesome life. Here are just some of the reasons why you should be drinking lots of water: • Water makes up to 50-60% of your body! • Water is vital for the proper functioning of body cells; it regulates body temperature, transports nutrients, ensures good blood circulation and keeps bowels healthy. • Water serves as a shock absorber that protects vital organs and acts as a lubricant for your joints. • To keep a healthy amount of water in your body you need to drink a certain amount each day. We're losing water all the time, even simply by breathing, but especially when we perspire more due to increased physical activity or when it’s hot. • If you haven’t had enough water you'll find yourself feeling lethargic, tired and irritable. To keep your body revitalized and maintain energy levels, you must make sure you're having regular drinks of pure, safe water as you go about your daily activities. • Water is the best way to get a radiant and clear complexion as it promotes elasticity while preventing your skin from becoming dry and prone to wrinkles. Not only that, but water helps keep your breath from getting bad odor. • If you feel a headache coming on then has water. It helps keep headaches at bay. • Best of all, it's the only beverage with ZERO calories! What is Dehydration? You experience dehydration when your body loses too much fluid due to an increase in body temperature such as fever, exposure to high temperatures or with prolonged activity. Your body loses fluids by urination, sweating, vomiting and even diarrhea. If you experience thirst, dry or parched mouth, headache, irritability, confusion and difficulty concentrating, then you are dehydrated. You should drink up on pure water at the first opportunity. How Much Water?
  • 4. Stream0 Your body weight and activity level determine the *amount of water you need to maintain proper hydration. A good rule to follow is to drink at least 8 glasses of water a day and add on more for each hour of activity. The table below gives a guideline of how much water to drink, according to age, gender and level of physical activity : * Median Daily Total Water Intake for Least Active (no reported leisure time activity) and Most Active (leisure time activity 5 or more times per week) Persons in the United States, (NHANES III, 1988-1994): Why Bottled Water Take a look around you. You'll notice that where once soft drinks were the first choice for quenching thirst, now more and more people have bottled water in their hands. You see, it's all about making informed and smart choices. Increasingly people are becoming aware that pure water is an essential part of a healthy life. Among its numerous benefits and functions, water revitalizes your body, helps prevent fatigue, regulates your body's metabolism and also maintains your immune system. People are becoming more health-conscious and they realize how the increased pollution is adversely affecting the quality of water. At Stream0 we believe it is particularly important to ensure that the water you and your family drink is pure, safe and healthy. However bottled water in Pakistan is not considered a ‘beverage’. Beverage processing includes carbonated soft drinks where Pakistan has the lowest per capita consumption in the world, fruit juices, syrups and juice flavored drinks. Drinking water and also bottled water is not considered an important commodity either. Water supply and prices for drinking water and bottled water are not considered under the items in the Sensitive Price Indicator, Consumer Price Index or Wholesale Price Index. From this perspective, it is obvious that Pakistan has low consumption of bottled water. The Government of Pakistan described the market for bottled water, with 33 million liters of consumption per annum in 1999, as small but growing. Furthermore it is
  • 5. Stream0 estimated that the consumption for 2003, as 70 million liters or 0.5 liters per capita. The bottled water market in Pakistan has witnessed annual growth rates of 40 percent, and after the introduction of “Nestlé's Pure Life” it had the fastest worldwide growth in bottled water in 2000, at 140%. Recent figures estimate a yearly consumption of about 2 liters per person bottled although this is relatively low. But rough figures prove 964 percent consumption increase in five years of bottled water, thus one is able to conclude that Pakistan is a highly dynamic and lucrative market. Market expectations are as high in the retail market of bottled water as in the household and operations sector for bulk water. Besides these market expectations, the production of bottled water is also considered quite profitable. It is estimated that a bottle of 1.5 liters has production costs of PKR 12.51 (USD 0.22) while it is sold for PKR 22 (USD 0.38). The profit is shared between producing corporations, with PKR 0.66-0.83 (USD 0.011-0.014), and middleman, with PKR 6.66-7.08 (USD 0.116-0.124). By this standard, the producing corporation makes a profit of 4-5 percent while the middleman makes a profit of 27-30.55 percent. In Pakistan’s water market, there are approximately 20 permanent players. Official figures show an estimated number of 26 corporations, while in summer time, this number increases up to 70. But from the perspective of quality control, PCRWR (Pakistan Council of Research in Water Resources) is witnessing a fluctuation in the market of 50 percent, e.g. half of the brands disappear and are replaced by new brands yearly. In 2005, PSQCA (Pakistan Standards & Quality Control Authority) admitted that 200 companies are selling bottled water in Pakistan, but only 27 are registered as maintaining standards stipulated for the product. Nestlé itself estimates approximately 150 water brands, with only 15 registered under the PSQCA scheme. Regardless of this data, it is unquestioned that Nestlé controls the majority of the market (over 50 percent) with its brands “Pure Life”, “AVA” and “Fontalia”.
  • 6. Stream0 INTRODUCTION:- Our company “Stream 0” will be incorporated in December 2009. Our plant is situated in S.I.T.E at Estate Avenue Road in Karachi with the head office at I.I Chundigar Road. The distinct feature of our company is our unique product which is introduced in Pakistan for the first time. We have well-equipped and modern plant to ensure strict monitoring of quality. We practice, conduct, inspect and test all stages of our production. So our product is strictly in accordance with the quality requirements. Product availability at all times is our main objective because the best products deserve the best distribution. Our objective is simply that consumers should have access to our products when, where and how they want it. To establish interactive relationships with our customers we bring creativity to our communication as a complement to more traditional communication opportunities. The focus of all our communication is to ensure that our product Stream O appeals to today's consumers, thereby building brand loyalty. StreamO can be served in parties, functions, exhibitions and educational institutes as a substitute to cold drinks. It is also a good seasonal drink in the summer. It can be served there where mothers don’t want their children to have carbonated drinks. It is a very different kind of product in the local market; therefore, we hope that everybody will try it at least once. HEAD OFFICE PLANT 1st Floor Textile Plaza S.I.T.E Industrial Area. I.I Chundigar Road Plot# C-23/b, Estates Avenue Road Karachi Pakistan. Karachi-75160, Pakistan. Phone no: - 021-5651473 Phone no: - 021-5097847 SITE E-MAIL www.Stream0.com Stream0@hotmail.com.
  • 7. Stream0 MISSION STATEMENT StreamO is the need of the new generation. It is fresh water with fruity flavors that quenches thirst providing an energetic experience for all. Our mission is to develop enthusiastically satisfied customers, whose search for fun and excitement has now come to an end. Stream 0 makes you feel good, look good and get more out of life. It keeps the heart young adding colors to your life! Marketing plan Marketing plan is a written document that details the necessary actions to achieve one or more marketing objectives. It can be for a product or service, a brand, or a product line. Marketing plans cover between one and five years. A marketing plan may be part of an overall business plan. Solid marketing strategy is the foundation of a well-written marketing plan. While a marketing plan contains a list of actions, a marketing plan without a sound strategic foundation is of little use. It is apparent that a marketing audit can be a complex process, but the aim is simple: "it is only to identify those existing (external and internal) factors which will have a significant impact on the future plans of the company." It is clear that the basic material to be input to the marketing audit should be comprehensive. Accordingly, the best approach is to accumulate this material continuously, as and when it becomes available; since this avoids the otherwise heavy workload involved in collecting it as part of the regular, typically annual, planning process itself - when time is usually at a premium. Even so, the first task of this annual process should be to check that the material held in the current facts book or facts files actually is comprehensive and accurate, and can form a sound basis for the marketing audit itself. The structure of the facts book will be designed to match the specific needs of the organization, but one simple format - suggested by Malcolm McDonald - may be applicable in many cases. This splits the material into three groups: 1. Review of the marketing environment. A study of the organization's markets, customers, competitors and the overall economic, political, cultural and technical environment; covering developing trends, as well as the current situation. 2. Review of the detailed marketing activity. A study of the company's marketing mix; in terms of the 4 Ps –
  • 8. Stream0 3. Review of the marketing system. A study of the marketing organization, marketing research systems and the current marketing objectives and strategies. The last of these is too frequently ignored. The marketing system itself needs to be regularly questioned, because the validity of the whole marketing plan is reliant upon the accuracy of the input from this system, and `garbage in, garbage out' applies with a vengeance.  Portfolio planning. In addition, the coordinated planning of the individual products and services can contribute towards the balanced portfolio.  80:20 rule. To achieve the maximum impact, the marketing plan must be clear, concise and simple. It needs to concentrate on the 20 percent of products or services, and on the 20 percent of customers, which will account for 80 percent of the volume and 80 percent of the profit. o 4 P's: Product, Place, Price and Promotion Micro Environment The marketing management’s job is to build relationships with the customers by creating customer value and satisfaction. However marketing managers cannot do this alone. The figure below shows the major actors in the marketer’s micro environment. Marketing success will require building relationships with other company departments suppliers, marketing intermediaries customers, competitors, and various publics which combine to make up the companies value delivery network The company Suppliers Marketing Intermediaries Customers Competitors Publics The Company: Marketing
  • 9. Stream0 In designing marketing plans marketing management takes other company groups into account groups such as top management finance research and development (R&D) purchasing, accounts, etc, all these somehow related show work together Suppliers: The supply chain that we heavily rely on, to provide us with essential ingredients for product. Therefore we intend to establish a good and strong relationship with farmers of orange, lemon strawberry, grapes and mango, make them protect against the buffer stock by giving them single price which will be applicable in both buffer and shortage harvesting, this will reduce the fluctuation in their income. In return they will do the same by giving same price in both cases and this will reduce the variation in profit margin this may also in the long run help us in getting discounts on purchases and more relaxed credit terms. Marketing Intermediaries Stream0 has opened tenders and has invited different firms to join hands and help us distribute our products to the most, with this our own company networks would also be working side by side so that there is no lack of quality in the distribution, and the product doesn’t falls short at any time. And is visible on shelves at all kinds of big and small outlets. Customers The company needs to study 5 types of customer markets closely. Consumers Markets: These customers are those customers who directly buy our product from the retail outlets for personal consumption. Business markets: Our product is a final product and currently we don’t have any plans or offers so that our product can be used as a product which can be used in further processing. Resellers Markets: Our Company caters the whole sellers as well, if they agree to buy a bulk quantity and want to serve as marketing intermediaries, and earn while further reselling. Our company welcomes such customers Government Markets: Our product is a final product which can be purchased by the consumer directly so government is not much involved. Although the pricing policies can be affected as the taxes being imposed every now and then the price of raw materials increasing can create a problem of low sales for us.
  • 10. Stream0 International Markets: We have plans to first expand our country wide sales net work and then by God’s will to first our neighboring countries and then our business plans consist of Dubai, Competitors: StreamO seeks to compete fairly and ethically and within the framework of applicable competition laws; the company assures that it will not prevent others from competing with it. We have the pure ingredients with pure water and fresh juice prepared to fulfill the thrust which its competitor, juice companies couldn’t so it is almost like monopoly, Our main Competitors in the Market are NESTLE (Pure Life) 1. PRODUCT But here, will focus on the bottled waters offered by Nestle. In 1992, Nestlé was the first company to launch a mineral water, Valvert, in five different countries at once. Nestle Waters is the world's leading mineral water company by revenues, a key part of the vast Nestle worldwide portfolio. Although its best-known brands are the two mineral waters which made up its old name, the company also has a large portfolio of 75 other brands. Nestlé Waters accounts for almost 10% of the Nestlé Group’s consolidated sales and manages a portfolio of 77 brands, covering 109 production sites and employing a global workforce of 27,600. Pepsi (AQUAFINA) 1. PRODUCT:- Aquafina is carbonated bottled water produced by PepsiCo. The water is mainly derived from municipal water supplies that go through an extensive purification process that includes charcoal filtration, & reverse osmosis.  And other new players which have entered the water market  Coca-Cola introduced its drinking water Kinley but its not advertised and marketed as required.  Habib Group with its brand First Water and  Shahi group with its own brand of pure drinking water.
  • 11. Stream0 INDIRECT COMPETITION REDBULL ENERGY DRINK Red Bull is a utility drink to be taken against mental or physical weariness or exhaustion. Red Bull combines two natural substances and important metabolic transmitters the amino acid taurine and with stimulating caffeine, vitamins and the energy provided by carbohydrates. The leader in the energy drinks category. While our opinion on Red Bull's flavor hasn't changed it is truly painful to drink we will give Red Bull credit where credit is due. Namely, the brand power that this product has created is truly amazing. Many people in the industry may hate Red Bull, but without Red Bull there wouldn't even be a market for the other 150+ products currently crowding the shelves. However, Red Bull faces some potential bumps in the road. First, the product has completely oversaturated the market Red Bull is in just about anywhere that you can fit a mini-cooler as well as mass merchandisers, bike shops, retailers, etc. This could result in Red Bull becoming passé by removing the "cool" factor that made the brand so successful. Finally, given that Red Bull is a one trick pony (compared to others such as Coke and Pepsi), the party is in serious jeopardy if sales start to slump, a price war starts, or press over energy drink health concerns start to proliferate (hypothetically speaking). Overall, it is a tremendous brand power right now. Publics The company’s marketing environment also includes various publics. A public is any group that has a actual or potential interest in or impact on any organization’s ability to achieve its objectives 1) Financial Publics The company is mainly self financed by its owners, and stock holders who have a strong belief in the company. Although a sum of money for the import of the machinery and international transactions local banks have been involved. 2) Media Publics All television networks, news papers and radio stations act as media publics for our company and they are the ones who help build our companies image.
  • 12. Stream0 3) Government Publics This means that the company should always account for government rules and regulations before taking any action, in case the action is against any governmental laws the company can be fined or shut down depending on the law broken. Therefore the company has appointed a team of lawyers to handle such issues. 4) Citizen-Action Publics These groups are such as the human rights groups and the environmental safety groups, therefore our company has setup a public relations department which helps in all such regards 5) Local Publics: These are the people in the neighborhood of the company who represent the area, the area, issues, meetings, problems etc are discussed by them we have our relations officer who manages these people and takes part in the societal affairs. 6) General Publics These are the general people who buy our product, so the company needs to work in all the above departments so that is has a good image in front of the public and maintains it so that the people consider their product on the image basis as well. 7) Internal Publics: These groups include your workers, managers, board of directors and all the employees of the firm, therefore the company need to keep in mind its force and take all of them equally. A common way to motivate them is through a monthly newsletter and determine each and every one, and appreciate them for the good work. Macro Environment: Demographic Factors Economic Forces Natural Forces Technological forces Political Forces Cultural Forces Demographic factors Company
  • 13. Stream0 These factors include the study of human population in terms of size, density, location, age, gender, race, occupation and other statistics therefore at strem0 we work for all such factors and keeps all the demographic factors in mind as our target market. Economic environment: The firm believes that profitability is essential for any business to stay in the business. StreamO believes that this is a measure both of efficiency and the value that the customers place on Stream0 products and services. Profit is essential to the allocation of the necessary corporate resources and to support the continuing investment required to meet consumer needs. Without profits and a strong financial foundation it would not be possible to fulfill the responsibilities outlined above. The criteria for investment decisions are not exclusively economic but also take into account social and environmental considerations and appraisal of the security of the investment. Political and Legal environment: Stream0 acts in a socially responsible manner within the laws of Pakistan in pursuit of its legitimate commercial objectives. The company does not involve itself in any political activities of the government but plans to act alongside the government and as a major stakeholder in many of the government’s long-term and short-term plans. It believes that this measure would certainly improve the competitive environment of the industry as a whole and Stream0 would gear up to take this challenge head on. Cultural environment: Stream0 is a staunch advocate of having a diverse work force. Its commitment to have a diverse work force and creating awareness is phenomenal. The company understands that respecting the Pakistani society and culture is one way of improving trust and loyalty
  • 14. Stream0 to the company by the employees. The company participates in all the social, cultural and religious festivals. The company gives holidays on religious festivals. Technological environment: StreamO is striving to compete in the dynamic environment. One of its major goals is to keep pace with the ever-changing technological environment. StreamO is developing new techniques and implementing new technologies to gain an advantage over its competitors. To achieve excellence in form of high quality, low waste and less labor requirement Sream0 has the state of the art reverse Osmosis Systems Installed so that the water being used is the best water. And the energy level is optimum. Natural Environment: StreamO considers that all the ingredients needed for manufacturing our product i.e. these drinks are readily available at reasonable rates. Another factor that may come to mind here is that in the recent past there was a problem of interprovincial export of supplies. We have countered this situation by directly opting for building a strong relationship with our suppliers. Market Segmentation DEMOGRAPHICS AND PSYCHOGRAPHICS CHARACTERISTICS OF Stream0:- "The marketer should stop thinking of his customers as part of some massively homogeneous market. He must start thinking of them as numerous small islands of distinctiveness, each of which requires its own unique strategies in product policy, in promotional strategy, in pricing, in distribution methods, and in direct selling techniques." T. Levitt DEMOGRAPHIC CHARACTERISTICS OF StreamO:- Demographics concern the measurement of the population. Demographic segmentation involves dividing the market into groups based on demographic variables such as:
  • 15. Stream0  Age;  Gender;  Family life cycle;  Income;  Occupation;  Education;  Religion;  Nationality In accordance to our product, demographic segmentation entails segmentation based on age and life cycle, also including gender, income and population based segmentation. All these methods of segmentation will help us to perceive our target market more effectively, keeping in mind the markets we will cater to. Since StreamO is an energy drink, let us look onto its demographic variables: 1. AGE AND LIFE CYCLE :- We understand the fact that our consumers go through different phases in life and their choices differ at different stages. Our main target for our product is, however, the teenagers-the new upcoming generation but also the young adults ranging from 20-28 yrs of age. For their particular needs, we have introduced water in different flavors in bottles of different sizes that can be carried comfortably. Buying is also shaped by the stage of the family life cycle. For example, a young father (aged 27) with a family of three would prefer water that is more different and refreshing providing a new different taste giving him a sense of freedom from a life full of responsibilities. For our product, the family life we will concentrate on would be:  young singles  young married, no children  married, young children 2. GENDER SEGMENTATION :- For a product, such as flavored water, it is not necessary to dissect the target market by gender. Water, is consumed by both males and females alike. We have to be really vigilant when segmenting because using a single demographic variable, such as age and/or gender in isolation can be misleading. For example, a 21 year old male could be a full-time student, a professional, or a father with small children etc. Depending upon their circumstance, they would have quite different needs and wants. Therefore, a multivariate segmentation approach based on a mixture of variables
  • 16. Stream0 such as gender, age and family life-cycle (age and lifecycle segmentation) would be far more useful for segmenting the market for our water product. 3. INCOME SEGMENTATION:- StreamO has been priced effectively at PKR 20 and 30. We know that a person’s economic situation will affect his/her product choice. Although our market is mainly targeted at the upper class but our product is priced such that is can also be conveniently afforded by middle class and upper middles. This shows that we target consumers with more modest means. Income Segments: Rs. 8,000-10,000 Rs. 10,000-15,000 Rs. 15,000-20,000 Rs. 21,000-35,000 Rs. 40,000 and above Talking about the teenager section of the society, StreamO has been designed keeping their pockets and needs in mind. Although most teenagers from 12-17 years do not earn themselves and are solely dependent on their pocket money, StreamO has been priced to attract them and in a manner that they do not find it over-priced. 4. Occupation May it be business man fathers, house wife moms, working ladies, students, Stream0 is meant for all without any restriction of your occupation. 5. Race Stream0 is for the people, it’s a drink to vitalize you, give you energy in a pure form in less price, and being natural, its not restricted to any race or a specific group of people. 6. Religion Stream0 is not restricted to any religion and being a product of a (Muslim) country the product is purely Halal, (Certified) and all ingredients used are properly tested certified. And are fit to be used by all kinds of people. Belonging to any religion GEOGRAPHICAL LOCATION:- Geo-demographic Techniques-This approach to segmentation combines a number of variables such as where a customer lives, size of family, and so on. They are particularly relevant to the location and development of hospitality/tourism operations such as pubs, restaurants, leisure facilities. One approach to geo-demographic segmentation using, geographic, cultural, socio economic and other factors is 'A Classification of Residential Neighborhoods.'
  • 17. Stream0 StreamO will be introduced in all major cities of Pakistan. They include Karachi, Lahore and Islamabad. We have selected these cities on the basis of dense population. Due to high population rates in these areas as compared to cities like Rawalpindi and Hyderabad, we expect a high return on sales and a substantial feedback from these cities. These cities are also divided into different areas where StreamO will be available like KDA, Nazimabad and Defense etc where there is mix blend of elite and upper middles which are our prime target market 1. Density Stream0 is a product for all classes races, and all kinds of people, it is a product substitute to all kinds of liquid drinks, i.e. water, drinks, juices, and still has the purity of water and the energy of a energy drink. Therefore the product is available to the masses despite of discriminating it by the Density of Population 2. Location Location is a very big factor for promoting our product but the company intends to spread the product country wide, starting large cities such as Karachi Lahore and Islamabad. And then adjoining small cities and villages, then gradually increasing distributors in the whole country. 3. Climate As the drink is a substitute to water and all other drinks the product caters a mass market of the hot climate areas, although the product would be available in the northern Pakistan. But initially starting the product campaign it would be targeted to cut down the heat. And finish your thrust. Psychographic Factors 1. Life Style The product is priced very reasonably therefore accessible to all income classes, therefore people who use Stream0 would have a life style of a normal Pakistani, who wants to vitalize himself with a premium quality local originated drink. 2. Social Class As the people would get to know about the product people would refer the product to others also this way the people living in social classes would start to get to know about the product and the product would be in the eyes off people Behavioral Factors. Occasion: Stream0 has been targeted as a energy drink and as well as a refreshing drink therefore it can be substituted to soft drinks as well as water. Because of which the product can be used for parties and festivals and as well as a daily drinking product to fulfill ones needs
  • 18. Stream0 BENEFITS OUR TARGET MARKET SEEKS The target market of Stream0 is teenagers and young adults who form a large market segment of flavored and energy drinks. Our ideal target market is of people of age 11- 25. People younger than 11 are not mature enough to buy products themselves. They are mostly fed according to their parents’ choice. Their routine is usually not that hectic as compared to 11-25 to consume energy drinks. People aged more than 25 usually do not buy energy drinks as according they do not need to acquire energy through these artificial means. Another major reason is that these older people have diseases like heart problems, abnormal blood pressure and weaker bones. So they have to be very particular about what they eat. Hence the target market we have chosen of young people is ideal for our product: StreamO! Consumer Buying Behavior 1. Cultural “Culture is the most basic cause of a person’s wants and behaviors’” As Strem0 is a new product and the people would take time to admire it and adopt it this is a very good time to introduce the product people are getting health cautious day by day and are avoiding soft drinks and shifting towards other alternative Stream0 being the second best thing next to water, and being water with flavors is a innovative idea for all the consumers, so this would bring a cultural change and we expect a large number of people to get adapted to the product very soon. 2. Social Social factors include the reference groups you sit in the social clubs you are related to and the roles and statues therefore at Stream0 we know that the consumer wants only the best that’s why we have set a up a distribution channel which assures a distribution that reaches each and every person and every individual gets holds of Stream0 and gets it where ever they want it. 3. Personal Personal Influences Age life Cycle Occupation Economic Situation Personality and Self Concept Age and Life Cycle.
  • 19. Stream0 As the product is simple water with added natural flavors there should be no issue for it to be used by any age limit, although the old people would take a little longer to get adopted to the product but the product is targeted for all the age groups. Occupation: A person’s occupation affects the goods and services bought. Our product is a daily house hold use product and is priced very reasonably which can be afforded by all kinds of income groups starting a salary figure of Rs.1000 or even less then that a single bottle of Stream0 500mg is affordable to anyone who wants to get rid of his thrust Economic Situation Economic situation is also a very big factor in choosing the product for this marketers launch the same product in different sizes to cater all types of markets. But at StreamO we have initially 2 sizes of our product 500ml and 1L which is going to be sold at a very reasonable rate and affordable for all income classes Personality & Self Concept A person’s personality can be challenging to overcome if a person is not at all in flavors of bottled water our product is not for such consumers we need a separate marketing strategy for such consumers. For such customers we need to show the customers that brands also carry personalities at Stream0 different flavors of stream0 are created to cater the different personalities and different kinds of people. Product life cycle
  • 20. Stream0 The product life cycle goes through multiple phases, involves many professional disciplines, and requires many skills, tools and processes. Product life cycle (PLC) has to do with the life of a product in the market with respect to business/commercial costs and sales measures; whereas product life cycle management (PLM) has more to do with managing descriptions and properties of a product through its development and useful life, mainly from a business/engineering point of view. To say that a product has a life cycle is to assert four things:  that products have a limited life,  product sales pass through distinct stages, each posing different challenges, opportunities, and problems to the seller,  profits rise and fall at different stages of product life cycle, and  Products require different marketing, financial, manufacturing, purchasing, and human resource strategies in each life cycle stage. The different stages in a product life cycle are: Stage Characteristics 1. Market introduction stage 1. costs would be high 2. slow sales volumes to start 3. Little or no competition - competitive manufacturers watch for acceptance/segment growth losses. 4. demand has to be created 5. customers have to be prompted to try the product 6. makes no money at this stage 2. Growth stage  costs reduced due to economies of scale  sales volume increases significantly  profitability begins to rise  public awareness increases  competition begins to increase with a few new players in establishing market  increased competition leads to price decreases 3. Mature stage  costs are lowered as a result of production volumes increasing and experience curve effects  sales volume peaks and market saturation is reached  increase in competitors entering the market  prices tend to drop due to the proliferation of competing products  brand differentiation and feature diversification is
  • 21. Stream0 emphasized to maintain or increase market share  Industrial profits go down 4. Saturation and decline stage  costs become counter-optimal  sales volume decline or stabilize  prices, profitability diminish  profit becomes more a challenge of production/distribution efficiency than increased sales Therefore the company knows that we are a new product with a new idea in the market we will have to promote it a lot and people to use our product, This way brand awareness would arose and Stream 0 like any other drink would take over the market and would lead itself to the maturity stage However we at Stream 0 understand that every brand has decline stage for this we have planned to renew and bring changes in the stream 0 as required time to time i.e. we plan to introduce our Water in several other flavors’ and packaging in the near future. Request for Deviation In the process of building a product following defined procedure, an RFD is a request for authorization, granted prior to the manufacture of an item, to depart from a particular performance or design requirement of a specification, drawing or other document, for a specific number of units or a specific period of time. .... Market Identification A "micro-market" can be used to describe a Walkman, more portable, as well as individually and privately recordable; and then Compact Discs ("CDs") brought increased capacity and CD-R offered individual private recording...and so the process goes. The below section on the "technology lifecycle" is a most appropriate concept in this context. Most of the context is not in English so you may need a translator. In short, termination is not always the end of the cycle; it can be the end of a micro- entrant within the grander scope of a macro-environment. The auto industry, fast-food industry, petro-chemical industry, are just a few that demonstrate a macro-environment that overall has not terminated even while micro-entrants over time have come and gone. Lessons of the product life cycle (PLC) It is claimed that every product has a life period, it is launched, and it grows, and at some point, may die. A fair comment is that - at least in the short term - not all products or services die. Jeans may die, but clothes probably will not. Legal services or medical services may die, but depending on the social and political climate, probably will not.
  • 22. Stream0 Even though its validity is questionable, it can offer a useful 'model' for managers to keep at the back of their mind. Indeed, if their products are in the introductory or growth phases, or in that of decline, it perhaps should be at the front of their mind; for the predominant features of these phases may be those revolving around such life and death. Between these two extremes, it is salutary for them to have that vision of mortality in front of them. However, the most important aspect of product life-cycles is that, even under normal conditions, to all practical intents and purposes they often do not exist (hence, there needs to be more emphasis on model/reality mappings). In most markets the majority of the major brands have held their position for at least two decades. The dominant product life-cycle, that of the brand leaders which almost monopolize many markets, is therefore one of continuity. In the criticism of the Product life cycle, Dhalla & Yuspeh state: The PLC is a dependent variable which is determined by market actions; it is not an independent variable to which companies should adapt their marketing programs. Marketing management itself can alter the shape and duration of a brand's life cycle. Thus, the life cycle may be useful as a description, but not as a predictor; and usually should be firmly under the control of the marketer. The important point is that in many markets the product or brand life cycle is significantly longer than the planning cycle of the organizations involved. Thus, it offers little practical value for most marketers. Even if the PLC (and the related PLM support) exists for them, their plans will be based just upon that piece of the curve where they currently reside (most probably in the 'mature' stage); and their view of that part of it will almost certainly be 'linear' (and limited), and will not encompass the whole range from growth to decline. Limitations The PLC model is of some degree of usefulness to marketing managers, in that it is based on factual assumptions. Nevertheless, it is difficult for marketing management to gauge accurately where a product is on its PLC graph. A rise in sales per area is not necessarily evidence of growth. A fall in sales per area does not typify decline. Furthermore, some products do not (and to date, at the least, have not) experienced a decline. Coca Cola and Pepsi are examples of two products that have existed for many decades, but are still popular products all over the world. Both modes of cola have been in maturity for some years. Another factor is that differing products would possess different PLC "shapes". A fad product would hold a steep sloped growth stage, a short maturity stage, and a steep sloped decline stage. A product such as Coca Cola and Pepsi would experience growth, but also a constant level of sales over a number of decades. It can probably be said that a given product (or products collectively within an industry) may hold a unique PLC shape, and the typical PLC model can only be used as a rough guide for marketing management. This is why it’s called the product life cycle.
  • 23. Stream0  New product development In business and engineering, new product development (NPD) is the term used to describe the complete process of bringing a new product or service to market. There are two parallel paths involved in the NPD process: one involves the idea generation, product design, and detail engineering; the other involves market research and marketing analysis. Companies typically see new product development as the first stage in generating and commercializing new products within the overall strategic process of product life cycle management used to maintain or grow their market share. The process 1. Idea Generation is often called the "fuzzy front end" of the NPD process o Ideas for new products can be obtained from basic research using a SWOT analysis (Strengths, Weaknesses, Opportunities & Threats), Market and consumer trends, company's R&D department, competitors, focus groups, employees, salespeople, corporate spies, trade shows, or Ethnographic discovery methods (searching for user patterns and habits) may also be used to get an insight into new product lines or product features. o Idea Generation or Brainstorming of new product, service, or store concepts - idea generation techniques can begin when you have done your OPPORTUNITY ANALYSIS to support your ideas in the Idea Screening Phase (shown in the next development step). 2. Idea Screening o The object is to eliminate unsound concepts prior to devoting resources to them. o The screeners must ask at least three questions:  Will the customer in the target market benefit from the product?  What is the size and growth forecasts of the market segment/target market?  What is the current or expected competitive pressure for the product idea?  What are the industry sales and market trends the product idea is based on?  Is it technically feasible to manufacture the product?  Will the product be profitable when manufactured and delivered to the customer at the target price? 3. Concept Development and Testing o Develop the marketing and engineering details  Who is the target market and who is the decision maker in the purchasing process?  What product features must the product incorporate?  What benefits will the product provide?  How will consumers react to the product?  How will the product be produced most cost effectively?  Prove feasibility through virtual computer aided rendering, and rapid prototyping
  • 24. Stream0  What will it cost to produce it? o Testing the Concept by asking a sample of prospective customers what they think of the idea. Usually via Choice Modeling. 4. Business Analysis o Estimate likely selling price based upon competition and customer feedback o Estimate sales volume based upon size of market and such tools as the Fourt-Woodlock equation o Estimate profitability and breakeven point 5. Beta Testing and Market Testing o Produce a physical prototype or mock-up o Test the product (and its packaging) in typical usage situations o Conduct focus group customer interviews or introduce at trade show o Make adjustments where necessary o Produce an initial run of the product and sell it in a test market area to determine customer acceptance 6. Technical Implementation o New program initiation o Resource estimation o Requirement publication o Engineering operations planning o Department scheduling o Supplier collaboration o Logistics plan o Resource plan publication o Program review and monitoring o Contingencies - what-if planning 7. Commercialization (often considered post-NPD) o Launch the product o Produce and place advertisements and other promotions o Fill the distribution pipeline with product o Critical path analysis is most useful at this stage 8. New Product Pricing o Impact of new product on the entire product portfolio o Value Analysis (internal & external) o Competition and alternative competitive technologies o Differing value segments (price, value, and need) o Product Costs (fixed & variable) o Forecast of unit volumes, revenue, and profit These steps may be iterated as needed. Some steps may be eliminated. To reduce the time that the NPD process takes, many companies are completing several steps at the same time (referred to as concurrent engineering or time to market). Most industry leaders see new product development as a proactive process where resources are allocated to identify market changes and seize upon new product opportunities before they occur (in contrast to a reactive strategy in which nothing is done until problems occur or the competitor introduces an innovation). Many industry leaders see new product
  • 25. Stream0 development as an ongoing process (referred to as continuous development) in which the entire organization is always looking for opportunities. For the more innovative products indicated on the diagram above, great amounts of uncertainty and change may exist, which makes it difficult or impossible to plan the complete project before starting it. In this case, a more flexible approach may be advisable. Because the NPD process typically requires both engineering and marketing expertise, cross-functional teams are a common way of organizing projects. The team is responsible for all aspects of the project, from initial idea generation to final commercialization, and they usually report to senior management (often to a vice president or Program Manager). In those industries where products are technically complex, development research is typically expensive, and product life cycles are relatively short, strategic alliances among several organizations helps to spread the costs, provide access to a wider skill set, and speeds the overall process. Also, notice that because engineering and marketing expertise are usually both critical to the process, choosing an appropriate blend of the two is important. Observe (for example, by looking at the See also or References sections below) that this article is slanted more toward the marketing side. For more of an engineering slant, see the Ulrich and Eppinger, Ullman references below. People respond to new products in different ways. The adoption of a new technology can be analyzed using a variety of diffusion theories such as the Diffusion of innovations theory. A new product pricing process is important to reduce risk and increase confidence in the pricing and marketing decisions to be made. Bernstein and Macias describe an integrated process that breaks down the complex task of new product pricing into manageable elements.
  • 26. Stream0 MARKETING MIX PRODUCT QUALITY OF Stream O:- Stream O is a unique product; pure and transparent water with a blend of fresh fruity flavors. It is ideal for quenching thirst and the need of the hour. It is made for the youth of today who are always on the run and need energy in all fields of their life; be it sports, studies or party with friends. This product is made with care, ensuring quality at its best. The process of manufacturing this product involves taking pure water from our plants which have been imported from Germany and are one of the best in the world and also is quality certified by the International Standardization Organization (ISO) and then adding fruity flavors to it from the fresh fruits picked at our own farms. DESIGN AND PACKAGING OF StreamO:- StreamO is a unique product with a design which will amaze all. It is a long, cylindrical, and transparent water bottle with embossed waves on it, depicting energy of our drink. It will be available in two sizes: of 500 ml and 1.5 liters. 500 ml will be sold mostly in schools, colleges and universities and 1.5 liters will be available in general stores and super markets, which can be used at homes. The cap will be undetectable and its color will be indicating the fruity flavor. The bottle will contain all the necessary information for the consumers; the name of the product, its symbol and the tag line. It will enlist the size of the bottle. Ingredients will also be mentioned on the bottles which are:- Pure Water Natural Fruity flavors Calcium chloride Magnesium Sulphate Magnesium chloride Potassium bicarbonate Sodium chloride Natural Fruity flavors Preservatives The water bottle will be made of plastic so it can be easily recyclable and its sign will be shown on the bottle. A symbol of “keep the city clean” of a man throwing litter in the dustbin will be shown so that this habit is inculcated in the teenagers of our country. VARIETY OF Stream O:-
  • 27. Stream0 Stream0 comes in a variety of flavors which have been carefully chosen keeping in mind the taste of our target market. The fruity flavors offered are strawberry, lemon, grapes, mango and orange which will cater needs of our consumers having different tastes, likes and dislikes. Great care is taken to ensure that the freshness and essential vitamins of the fruits are stored and no good is gone to waste. Even the preservatives added to the water are laboratory tested and approved by the government to be edible and healthy. Our Flavors 1. StreamO Original The Original ( Orange ) 2. Stream O Raspberry Sparkling natural mineral water with Raspberry natural flavors. 3. StreamO Leachy Combine the strength of the Stream0 bubbles and the thrill of natural lemon. 4. StreamO Apple The perfect combination of bubbly water refreshment and Apple essence.
  • 28. Stream0 Ingerdients.  Aqua Pure water  Natural Fruity flavors  Calcium chloride  Magnesium Sulphate  Magnesium chloride  Potassium bicarbonate  Sodium chloride  Natural Fruity flavors  Preservatives 500ml Strem0 Raspberry Strem0 Ice Cream Soda Stream0 Apple Stream0 Leachy Stream 0 Purity - redefined Stream 0 Purity - redefined Stream 0 Purity - redefined Stream 0 Purity - redefined Stream 0 Purity - redefined
  • 29. Stream0 BRAND NAME:- The brand name we have chosen is “StreamO” and our tag line is “Purity redefined” The name has been thought of after keeping the target market in mind. After looking through many alternatives which depict the youth’s lifestyle, the name Stream0 was chosen. Stream symbolizes hip, happening, fashion and funk. It is also feasible as our drink contains energy which will be provided by our fruit flavored drink. The name Stream will appeal to everyone, especially teenagers as it is different. ADDITIONAL FEATURE OF StreamO:- Stream O is pure and distilled water, considered being 99.99% pure. It has been shown through a study that majority of mineral water bottles available in Pakistan are not up to the drinking standards as required by international institutes for health of human beings. But our product is tested on hygiene levels and is considered to meet the standards of such institutes. PRICING Pricing is a fundamental aspect of financial modeling, and is one of the four Ps of the marketing mix. The other three aspects are product, promotion, and place. It is also a key variable in microeconomic price allocation theory. Price is the only revenue generating element amongst the four Ps, the rest being cost centers. Pricing is the manual or automatic process of applying prices to purchase and sales orders, based on factors such as: a fixed amount, quantity break, promotion or sales campaign, specific vendor quote, price prevailing on entry, shipment or invoice date, combination of multiple orders or lines, and many others. Automated systems require more setup and maintenance but may prevent pricing errors. Promotional pricing refers to an instance where pricing is the key element of the marketing mix. Premium pricing (also called prestige pricing) is the strategy of consistently pricing at, or near, the high end of the possible price range to help attract status-conscious consumers. A few examples of companies which partake in premium pricing in the marketplace include Rolex and Bentley. People will buy a premium priced product because: 1. They believe the high price is an indication of good quality; 2. They believe it to be a sign of self worth - "They are worth it" - It authenticates their success and status - It is a signal to others that they are a member of an exclusive group; 3. They require flawless performance in this application - The cost of product malfunction is too high to buy anything but the best - example: heart pacemaker.
  • 30. Stream0 PRICING STRATEGY:- For setting the price of our new product we will use the marketing penetration strategy, where we will keep our prices low to attract early customers. Thus our price will be similar to the prices of pure mineral water bottles. The total price we will charge for our product will be:  500 ml bottle: Rs 15 and retailer margin Rs 5 (Rs. 20) (sales 250,000 bottles).  Cost of Bottle Rs. 5  Cost of Water Rs. 3  Cost of additional flavor Rs. 2  Cost of packing Rs. 1  Profit to the company Rs. 4  Total Cost Rs 15 1000 ml bottle Rs 25 and retailer margin Rs 5 (Rs. 30) (sales 200,000 bottles)  Cost of Bottle Rs. 7  Cost of Water Rs. 6  Cost of additional flavor Rs. 4.5  Cost of packing Rs. 2.5  Profit to the company Rs. 5  Total Cost Rs 25 As our product is new there is no discount, credit terms, allowance and payment period strategies given yet except in the following cases:- 1) If the order exceeds more than 1000 bottles purchased from the company then Rs.2 discount will be given per bottle. 2) Our retailers can purchase our bottles on 35% credit and 2 months payment period will be given (without interest) for the payment of the remaining balance. This is done to attract retailers and wholesalers to buy our product. 3) Advertising discounts would also be offered to retailers so that if they advertise our product in their shops the discounts would be offered to advertising sizes 4) Training program is also lined up so that all the retailers are trained and informed about the benefits of Stream0 and that how is it better than other products available in the market. Therefore they can further inform their customers about the product.
  • 31. Stream0 PLACE As our product Stream0 is for the masses we will ensure it is available in all localities so that our customers have easy access to it. After bottling the drink it will be stored in our company warehouses which will be in the premises of our company. DISTRIBUTION CHANNELS:- The product will be initially launched in 3 major cities of Pakistan:- Karachi Lahore Islamabad In these cities for proper placement of our product first a distribution and transport department will be set up. The departments will be present in the following areas:- Karachi: - S.I.T.E Lahore: - Gulberg Islamabad: - Sector E, And then later add on Quetta: Saddar Bazar The head office will be situated in Karachi, and 3 subsidiary offices would be set up in other 3 cities which will be headed by an expert placement manager who will direct the remaining 3 assistant managers in other cities. Each distribution and transport department will comprise a team of 20 transport agents and 50 workers and drivers, who will have the responsibility to transport the product from the company’s warehouse to the desired location in different cities of the country and evenly distribute it among the wholesalers and retailers. The transport agents will also be required to keep a check on the drivers and workers, who will transport, load and unload our product. Our customers will be given a choice either to purchase our product from the retailers and wholesalers present or in case of a large order (at least one truck) they can directly contact the company:- Contact number for order:- Karachi 021-5093989 Lahore 042-5751439 Islamabad 051-2254679 Transportation cost of Rs. 10,000 per truck will be charged. (on personal orders.)
  • 32. Stream0 Our drink will be available in all areas just as any other soft drink or mineral water bottle but more emphasis will be laid on the densely populated areas of each city In all the localities our product will be available at:-  Educational institutes.  In all major super markets.  Gyms  Clubs  Parks  Restaurants  Cafes  Cinemas  Small retail shops  Hotels In super markets and large stores our drink will be placed on eye-level shelves so that it is easily noticed and purchased by the customers. In addition our company will ensure that the product is available at all the destinations mentioned above at all times so as to maintain the goodwill of the company. PROMOTION The media vehicles to be used in promoting the Stream0 will be:- 1. Television 2. Radios 3. News Paper TELEVISION:- A burst strategy is proposed for the product at the launch. Burst strategy is when the selected channels are bombarded with advertisement for few weeks. For our product, it will be for 7 weeks next year, starting from last 2 weeks of December to 1st week of January because this would be the best time to launch our product. As our main focus is advertisement on TV so we have selected Shahid Afridi as our brand ambassador for the product as he symbolizes energy and excitement which reflects the soul of Stream0. The channels that we have selected are:  GEO (to attract a mature buyer)  MTV PAKISTAN ( to attract the youth)
  • 33. Stream0  INDUS NETWORK ( to attract the female gender)  CARTOON NETWORK ( to attract the kids)  GEO SUPER (to attract the excitement in the youth and the energy) RADIO:- All major radio channels are to be advertised on, at the initial period after word the channels giving us the best deals would remain our media partners and we leave the rest. HOARDINGS:- Hoardings will be placed in major areas of each City of Pakistan that’s why we are targeting the major cities of all the provinces of Pakistan so that we could target a large market at the same time. Billboards: Billboards are a more superior means of advertising for SnacShack®, because not only is it more cost-effective, but also hard to miss. A television commercial in most cases is unnoticed or overlooked since most viewers tend to channel surf between their favorite shows rather than sit and watch all advertisements attentively. A well placed billboard along well chosen roads can be seen by potential customers sometimes at least once in a week or at most two to three a day. SPONSORSHIPS AND PROMOTION:- The strategies of sponsoring different sporting events those are due to be held in the time of launch or particularly next year are:  We are going to sponsor the major event of world cup 2011 and all the channels will be airing our television commercial. We are going to contact the Pakistan Cricket Board (PCB) for sponsoring the Pakistan cricket team with our logo on their kits and to use our water during drink breaks.  We are going to sponsor different sporting events like our national game hockey, volley ball, badminton tournaments, etc  Company on its own will be organizing different events itself i.e. organizing the bicycle race, swimming, badminton, football matches etc. By organizing these events we will be creating an image that we are promoting neglected sports in Pakistan. Other activities promoting societal benefit will also be organized. DIRECT MARKETING:-
  • 34. Stream0 Our sampling team will be set up in the major three cities of Pakistan and they are going to give away free samples to people to create awareness of our product. The emphasis is going to be given to the following:  Schools/ Colleges  Universities  Clubs  Gymkhana  Supermarkets like Agha’s, Astras, Ebco, Ami’s, Makro, ,etc. BTL (BELOW THE LINE ACTIVITIES) All the major super markets will display our products on their shelves and POS (point of sales) material and the markets will be decorated so that everyone that enters the store gets to know what craze2o is all about. Apart from this, our sampling team will be placed outside the market giving away free samples. Another thing that the company will give emphasis to will be, SOCIETAL MARKETING i.e.-The Company will also organize few sporting events for the disabled people like marathon, blind cricket and other sporting activity. The company will give away free samples to areas that are very poor and don’t have pure water to drink. The company will have around 10% of its promotional budget for societal marketing. The company will also help the people in earthquake affected areas of Pakistan and if the product is going to be launched internationally then in every such circumstances of other countries.
  • 35. Stream0 Sales Forecast for the Next three Years 2010 2011 2011 Sales 250,000 units 300,000 400,000 units Market Share 10% 12% 15% Budget for 2010 Projected Sales 900,000 Profit 0 Total expenses: 100% 700,000 Cost of goods Sold 61% 427,000 Administration 39% 273,000 Administration & Marketing 100% 500,000 Administration 14.3% 70,650 Marketing 85.7% 429350 Marketing 100% 400,000 Distribution 23% 92,000 Promotion 77% 308,000
  • 36. Stream0 Promotional Budget Total Budget 100% 210,000 Sales Promotion 35% 70,000 Advertising 60% 130,000 Contingency 5% 10,000 Advertising Budget 100% 1,000,000 Television 5% 50,000 Outdoor Media (Billboards) 65% 650,000 Mobiles and banners 20% 200,000 Miscellaneous 10% 100,000 DIVERSIFICATION:- Diversification is a strategy for a company’s growth that involves offering new products to a complete new market segment. In other words, diversification means setting up a business outside the company’s current products and markets. For our product, StreamO, the best marketing strategy would be diversification. As it is a new product, its customers do not exist and neither does its market. We are not really diversifying but we are setting up a new business of a new product. This product is first of its kind in Pakistan. Transparent water with fruity flavors is a new concept in this country.
  • 37. Stream0 Marketing strategy Marketing strategy is a method of focusing an organization's energies and resources on a course of action which can lead to increased sales and dominance of a targeted market niche. A marketing strategy combines product development, promotion, distribution, pricing, relationship management and other elements; identifies the firm's marketing goals, and explains how they will be achieved, ideally within a stated timeframe. Marketing strategy determines the choice of target market segments, positioning, marketing mix, and allocation of resources. It is most effective when it is an integral component of overall firm strategy, defining how the organization will successfully engage customers, prospects, and competitors in the market arena. Corporate strategies, corporate missions, and corporate goals. As the customer constitutes the source of a company's revenue, marketing strategy is closely linked with sales. A key component of marketing strategy is often to keep marketing in line with a company's overarching Basic theory: 1. Target Audience 2. Proposition/Key Element 3. Implementation Tactics and actions A marketing strategy can serve as the foundation of a marketing plan. A marketing plan contains a set of specific actions required to successfully implement a marketing strategy. For example: "Use a low cost product to attract consumers. Once our organization, via our low cost product, has established a relationship with consumers, our organization will sell additional, higher-margin products and services that enhance the consumer's interaction with the low-cost product or service." A strategy consists of a well thought out series of tactics to make a marketing plan more effective. Marketing strategies serve as the fundamental underpinning of marketing plans designed to fill market needs and reach marketing objectives. Plans and objectives are generally tested for measurable results. A marketing strategy often integrates an organization's marketing goals, policies, and action sequences (tactics) into a cohesive whole. Similarly, the various strands of the strategy , which might include advertising, channel marketing, internet marketing, promotion and public relations can be orchestrated. Many companies cascade a strategy throughout an organization, by creating strategy tactics that then become strategy goals for the next level or group. Each one group is expected to take that strategy goal and develop a set of tactics to achieve that goal. This is why it is important to make each strategy goal measurable. Marketing strategies are dynamic and interactive. They are partially planned and partially unplanned.
  • 38. Stream0 Marketing strategies may differ depending on the unique situation of the individual business. However there are a number of ways of categorizing some generic strategies. A brief description of the most common categorizing schemes is presented below:  Strategies based on market dominance - In this scheme, firms are classified based on their market share or dominance of an industry. Typically there are four types of market dominance strategies: o Leader o Challenger o Follower o Nicher  Porter generic strategies - strategy on the dimensions of strategic scope and strategic strength. Strategic scope refers to the market penetration while strategic strength refers to the firm’s sustainable competitive advantage. The generic strategy framework (porter 1984) comprises two alternatives each with two alternative scopes. These are Differentiation and low-cost leadership each with a dimension of Focus-broad or narrow. o Product differentiation o Market segmentation  Innovation strategies - This deals with the firm's rate of the new product development and business model innovation. It asks whether the company is on the cutting edge of technology and business innovation. There are three types: o Pioneers o Close followers o Late followers  Growth strategies - In this scheme we ask the question, “How should the firm grow?” There are a number of different ways of answering that question, but the most common gives four answers: o Horizontal integration o Vertical integration o Diversification o Intensification
  • 39. Stream0 SWOT ANALYSIS STRENGTHS  Good management.  Abundant and cheap labor.  Modern machinery.  Good marketing strategies.  Product’s uniqueness.  Convenient transport facilities near our plant. WEAKNESSES  New product.  Price might be too high for the customers.  Unskilled labor.  Requirement for training program of labor.  High labor turnover.  Monotonous job routines. OPPORTUNITIES  Health conscious consumers  Product launch in summer.  Vast market.  No immediate competitors  Established goodwill of nestle.  Great profit expectancy.  Everlasting demand for beverages THREATS  Juices, Mineral waters, Red Bull, Nestle, AquaFina etc.  Well-established market of non-immediate competitors.  Large scale marketing required to create awareness among consumers.  Change in government policies
  • 40. Stream0 CONCLUSION:- We are launching flavored water in Pakistan for the first time, which is a risk, but it is said that no business can flourish without taking a risk and giving it a shot. We have designed our product very carefully keeping the needs of the upcoming generations in mind. All the strategies have been designed by putting in an extra effort and great thought and hard work. We hope that our product, StreamO, passes the introductory stage successfully and its maturity and growth stage occupies a long period, making the product a cash-cow from an initial star with increasing profits at every mile of the journey. We launch our product with an aim to make it an internationally-recognized brand such that our loyal consumers think of fun and energy whenever they hear the name; StreamO!
  • 41. Stream0 References and Sources for the completion of this Report www.google.com. (For images, theory, and other material). http://en.wikipedia.org/wiki/Marketing_plan http://www.nestle.pk/pure_life/why-water.aspx PSQCA (Pakistan Standards & Quality Control Authority) PCRWR (Pakistan Council of Research in Water Resources)