Blue Mountain Spring Water has created a three-year marketing plan to obtain additional funding for growth and expansion. Since launching five years ago, Blue Mountain has experienced strong revenue growth in its regional Pennsylvania market but needs to expand into new regions to succeed long-term. The plan outlines goals such as increasing annual revenue 50% each year, expanding product lines and distribution into surrounding states, and improving production facilities to accommodate growth while maintaining sustainability and community values.

1. MP-1
Three Year Marketing Plan—Blue
Mountain Spring Water, Inc.
Executive Summary
Blue Mountain Spring Water’s three-year marketing plan has been created by
its owners to secure additional funding for growth and to inform employees
of the company’s current status and future direction. Since our launch five
years ago, Blue Mountain has experienced excellent revenue growth and
increased market penetration. However, expansion outside our regional
market is vital to Blue Mountain’s future success.
Executive Summary
This three year marketing plan for Blue Mountain Water has been
created by its owners to solidify marketing and expansion objectives with
future growth in mind. Since Blue Mountain’s launch five years ago, the
company has enjoyed larger profit margins than competitor’s—an 8%
increase in growth despite downward market trends in 2008. Although Blue
Mountain products are enjoying growth in the Pennsylvania region,
particularly in high end grocery stores and on college campuses, the brand
would like to continue expansion in surrounding states and target active
parents with children.
To accommodate planned growth and expand distribution, Blue
Mountain will expand its production facilities and look into utilizing a
wholesaler by year three to improve distribution and cut costs of buying and
selling.

2. MP-2
With a goal of 40% profit increases per year, Blue Mountain will
adjust its pricing structure to target different marketing segments while
expanding profits. Incremental cost pricing and the modified breakeven
concept will be utilized to target higher end markets with higher prices and
image based messages of product value, while college markets and newer
regions will have a slightly lower price structure to remain competitive and
introduce the product.
New promotional strategies will involve hiring a few employees to
lead an advertising and marketing effort focused on building the brand, target
marketing, and expanding into new regions. The website will be improved and
redesigned to foster public education and create an interactive consumer base.
Additionally advertising will target regional newspapers, blogs, and high
traffic public spaces with quality ads emphasizing health and value of the
brand. New public relations strategies will include social networking and
buzz marketing on college campuses. Press releases will periodically be sent
focusing on new markets and introducing the brand. Along with the launch of
the new “junior” size, a public education effort will be made in K-8
classrooms educating kids about recycling, spring water, and sustainability
while sampling the product. Eventually, a limited clothing line will be
introduced for promotional efforts. Blue Mountain will seek to maintain core
ethics of sustainability, high value products, and comparatively low prices
during the expansion.

3. MP-3
Company Description
Located in the western Pennsylvania mountain region, Blue Mountain Spring
Water was founded five years ago by entrepreneurs Sam Chambers and Brad
Phillips. Chambers earned an undergraduate marketing degree and worked
several years in the carbonated soft drinks (CSD) industry for a producer of
all-natural, flavored iced teas. Phillips earned an undergraduate degree in
chemistry and worked for companies in the bottling and recycling industries.
Phillips had an opportunity to assume ownership of his family’s 20 acre farm
(known as Blue Mountain Farm), which contains a protected natural spring
with an unlimited supply of spring water. Phillips and Chambers, life-long
friends, agreed to pool their experience, constructed a bottling facility on the
farm and founded Blue Mountain Spring Water, Inc.
Chambers and Phillips incorporated the technologies of micron filtration,
ozonation and the application of ultraviolet light in the bottling process.
Thus, no residue, taste or odor is left in the bottles. This pristine bottling
process and the unique blend of minerals from the natural spring determine
the clean, fresh taste of Blue Mountain Spring Water. These elements created
a bottled spring water product that is delicious, refreshing, and appeals to
healthful consumers of all ages.
Blue Mountain Spring Water is currently sold in 500 ml, 750 ml, 1 liter and 2
liter sizes. Each bottle type is ergonomically shaped for easy carrying and
contains 30% less plastic versus comparable size CSD beverage containers –
which conforms with the company’s goals of being as eco-friendly as
possible, while manufacturing healthful products and contributing to local
conservation programs.
Blue Mountain Spring Water is currently sold at select natural food markets,
gourmet supermarkets and local stores throughout western and central
Pennsylvania, as well as border-state areas. Recent distribution growth
includes college and university campus stores. In order to penetrate these
market segments and maintain its high-quality image, Blue Mountain has
chosen not to distribute to mass-market and discount retailers. Although Blue
Mountain Spring Water appeals to healthful consumers of all ages, we have a
strong following among active consumers between the ages of 18 and 49.
Increased growth is trending in the 65+ age group and with parents of active
children under the age of 18. Our core customers understand the differences
between “purified” and “spring” water, thus appreciating the benefits of
drinking Blue Mountain Spring Water, versus “tap” or “purified” products.
Blue Mountain’s website has promoted these benefits and presented general

4. MP-4
facts about water, in order to educate consumers and retailers. However, the
website could be revised to improve its effectiveness.
With the exception of 2008, Blue Mountain Spring Water has achieved double
digit sales increases in each year since its founding, which are more than
double the increases experienced by the total U.S. bottled water market. The
economic downturn of 2008 affected sales revenues in many industries. But
while the total bottled water market experienced a decrease of 3% in sales,
Blue Mountain Spring Water’s sales increased 7% in 2008. The increase can be
attributed to the loyal customer base that enjoys the high quality and
reasonable price of Blue Mountain Spring Water. Currently, we are working
to achieve increased sales through expanded distribution and new product
applications – which Blue Mountain Spring Water will be able to support in
its current bottling facility. If future bottling capacity is required to meet
future sales demands, the facility can be expanded without acquiring
additional real estate.
Blue Mountain Spring Water is committed to creatively producing and
marketing high quality, reasonably priced spring water products for active
consumers to enjoy. We are also committed to producing our products in an
eco-friendly environment, while exploring improved recyclable or
biodegradable bottles and packaging.
The marketing plan will outline how Blue Mountain Spring Water intends to
introduce new products, expand its distribution, increase its customer base
and give back to the community.
Blue Mountain’s Mission and Goals
Blue Mountain’s mission is to be the leading producer and marketer of
bottled spring water in its (current and future) distribution areas, for health-
conscious, active consumers of all ages. Blue Mountain wants to educate
people about the benefits of drinking its spring water and protecting water as
a natural resource. In addition, Blue Mountain strives to preserve the natural
environment through support of recycling programs and integrating
manufacturing to reduce its carbon footprint.

5. MP-5
Financial Goals
1. Obtain financing to increase customer base, expand distribution, and
introduce (X) new product line(s). [determine value for X]
(X)=”Junior” line (8 oz. bottles), new ergonomic eco-friendly bottles, branded
clothing.
2. Increase revenue by (Y %) per year. [determine value for Y]
(Y)=50 percent per calendar year.
3. Donate $30,000 per year:
 $10,000 to Charity Water- Organization that funds charity water projects
and gives access to clean water for people in developing countries
(http://www.charitywater.org/donate/)
 $10,000 to developing spring water health education initative/school
demonstrations aimed at educating younger demographic about the
eco-conscious and health benefits of spring water while demonstrating
new junior sizes.
 $10,000 to Water Charity- Organization providing sustainability and
education and health resources to those in need.
(http://www.watercharity.org/)
4. [add additional goals as appropriate]
 Expand current facilities to support production growth with ecologically
friendly facilities.
 Devote financial resources to developing and expanding current
advertising and PR efforts throughout the region. This will increase in
house labor costs and ad budget.

6. MP-6
Nonfinancial Goals
1. (Z)=Junior” line (8 oz. bottles), new ergonomic eco-friendly bottles, branded
clothing.
2. Enter new geographic markets –
Expand in border states of Ohio, New York, Connecticut, New Jersey,
Delaware, Maryland, D.C, and West Virginia.
3. Source plastic materials for bottles that further reduce our products’ carbon
footprint.
4. [add additional goals as appropriate]
 Develop successful internet site that builds image and promotes core
values. Expand into social networking sites to foster community and viral
media usage.
 Continue to explore green production technologies and implement when
possible.
 Explore promotional opportunities to connect with communities.
 Develop strong relationships with retailers, and upon expansion,
wholesalers who will distribute our products.
Core Competencies
Blue Mountain will use its core competencies to continue achieving a unique,
sustainable competitive advantage. Currently, Blue Mountain’s core
competencies include: a recognizable, high-quality branded product; a loyal
customer base among active consumers in its current regional market; and a
reputation among retailers as a reliable bottler with excellent customer
service that increases consumer awareness of our products. Blue Mountain
will build on these core competencies through targeted marketing efforts, in
order to achieve company goals.

7. MP-7
Blue Mountain’s core competencies make the brand stand out from
competitors. The brand is known to be extremely high quality because of
micron and UV filtration, and offer a unique high value to consumers in cost
and quality. Proud to be one of the few firms on the marketplace that bottles
from a locally owned natural spring, the company practices sustainability in
production processes and seeks to educate the consumer about eco-conscious
ideals. Consumer education efforts will involve community outreach to
children regarding spring water and sustainability, blogs, social networking,
and frequent in-person promotions and displays.
The brand is highly recognizable to consumers through creative
branding strategies, great partnerships with retailers, and the recognizable
slogan “Blue Mountain is Nature’s Fountain!” Blue Mountain with expound
upon these competencies by increasing the type of products offered (Junior
size, branded clothing line), by expanding distribution and utilizing a
wholesaler within the next 5 years, and by giving back to the community
locally and globally (community education, global water and sustainability
charities).
Situation Analysis
Blue Mountain’s marketing environment presents excellent growth
opportunities, as well as some challenges that the company intends to meet
successfully. Following this discussion is a SWOT analysis of Blue
Mountain’s strengths, weaknesses, opportunities and threats.

8. MP-8
In the five years since its founding, Blue Mountain enjoys significant
strengths while optimistically targeting new opportunities. Our growing,
loyal customer base, strong fiscal management, intense quality control and
unlimited spring water resource, place Blue Mountain in an excellent growth
position. In addition, our founders’ combined experience creates a significant
understanding of both the technical and marketing aspects of the bottled
water industry. But, as Blue Mountain expands distribution and product
lines in new markets, the company must continue recognizing the scope of
our business and guard against market-share erosion from large competitors
in the spring water category. Targeting and educating active consumers that
understand and prefer the benefits of natural spring water will protect Blue
Mountain from encroachment by competitors in the purified water category.
Blue Mountain‘s expansion must also consider our bottling facility. Although
Blue Mountain has an unlimited supply of natural spring water, our current
bottling capacity is finite. Currently, Blue Mountain can triple bottling
capacity without considerable re-tooling of the facility. However, that
capacity would eventually be affected when increasing product lines. Thus,
as Blue Mountain increases distribution and products, we must coordinate
increased bottling capacity with growing production needs. The Blue
Mountain compound has adequate space to build an extension to our
bottling facility, but financial planning must include the possibility of
construction, if required. Based on the current relationship between sales
revenue and bottles produced, Blue Mountain would reach maximum
bottling capacity when approximately $9 million in annual sales are
achieved.
SWOT Analysis
Strengths
 Blue Mountain’s talented founders understand the product and target
market due to their technical and marketing experience.
 Blue Mountain has achieved increased distribution at several levels in
its regional market, while consistently increasing annual revenue.
 Our company has no debt and is poised for significant growth.
 An unlimited water resource and a self-contained, state-of-the-art
bottling facility, ensures excellent quality control.

9. MP-9
Weaknesses
 Blue Mountain’s founders may lose sight of the company’s business
scope as it expands.
 Blue Mountain is relatively unknown outside of its regional market.
 Expansion could potentially create cash flow problems and require
additional employees.
 Blue Mountain’s bottling facility may require physical expansion
when sales eventually exceed capacity.
Competitors in the Bottled Water Market
Bottled water producers sell over $11 billion worth of products in the U.S.
each year. Consumers have demonstrated a strong thirst for bottled water
that will continue in the future. A high level of interest exists for products
that consumers perceive as a healthful alternative to other beverages. In
addition, domestic non-sparkling water is the largest and strongest category,
representing almost 96 % of total volume last year. The retail premium PET
(polyethylene terephthalate) segment - consisting of individual servings of
non-sparkling water in PET bottles - continues to drive the category’s

10. MP-10
development, enjoying more than a 60% share of total bottled water volume
sold.
The U.S. bottled water market is comprised of many competitors in the local,
regional and national markets. National leaders of the purified water
segment include: Pure-Life (Nestlé Waters North America), Aquafina
(PepsiCo) and Dasani (Coca-Cola). However, Nestlé Waters North America
(the nation’s largest producer of bottled water) has purchased - and markets -
several regional brands with strong name recognition. Regionally, with some
geographical overlaps, these brands are: Arrowhead (West); Ice Mountain
(Mid-West); Ozark (Southwest); Deer Park (Mid-Atlantic and South); Poland
Spring (New England); and Zephyrhillis (Florida). Thus, consumers may
believe they are buying from a regional company versus a multinational
corporation that also sells purified water. Blue Mountain’s leading regional
competitors are Poland Spring and Deer Park. Regardless, Blue Mountain
offers consumers the best quality bottled spring water available, at an
affordable price.
Convenience store and supermarket chains that sell their private brand of
spring water influence local markets, but are often limited by the resources of
a variety of suppliers. In addition, some regional bottlers also provide direct
delivery service of 3 and 5 gallon containers (and dispensers) to homes and
businesses. Technological innovations in designing and printing bottle labels
have created growth in a new niche. Namely, some spring water companies
sell their water brand with customized labels for promotional use at
tradeshows, universities and events. With a minimal investment in printing
software, bottlers can, for example, provide an individualized, promotional
product of branded spring water to smaller retailers at an affordable price. As
described above, potential continued growth for the industry continues to
look positive.
While there are many competitors in the industry, Blue Mountain has
achieved success by: targeting consumers that desire spring water versus
purified water; creatively marketing the taste and health advantages of Blue
Mountain Spring Water; educating consumers about recycling and the
environmentally friendly facilities that produce a clean fresh taste; and
expanding distribution through dependable relationships and excellent
customer service.

11. MP-11
Additional competitive factors:
 Blue Mountain’s competitors have the financial resources to
squelch growth into new markets. Two of the largest regional
competitors, Deer Park and Arrowhead, are both owned by Nestle
Waters. In order to compensate for this Blue Mountain will rely on
unique local marketing methods such as grassroots and
educational initiatives. Blue Market will continue to clearly
distinguish and emphasize that it is a local and regional brand,
sourced regionally and focused on purity and health unlike many
of the larger competitors in the industry.
 The bottled water industry is dominated nationally by very few
large brands, as mentioned above. These brands compete with
each other on national stages, and more frequently are competing
on a global level. Blue Mountain will strive to differentiate itself—it
will never be merely a “commodity” available to just about
everyone. It will be a distinct product and marketed and distributed
selectively to distinct eco/health conscious and active individuals
regionally. Blue Mountain’s vision is not necessarily to dominate
nationally, rather to infiltrate select regional markets for growth
with a distinct product.
 New entrants to the bottled water scene will not automatically
enjoy brand loyalty. This must be created through distinct brand
dress, along with a PR and advertising campaign distinguishing
the product.
Target Market
The target market consists of healthful and eco-conscious consumers
aged 18-49 located mostly throughout western and central Pennsylvania.

12. MP-12
Trending groups include those on university campuses, seniors over age 65,
and parents with active children under age 18. As a group they appreciate
high value at low prices, and tend to shop at high end gourmet markets,
natural food markets, local stores, and college and university campuses. As a
group they are very active, and “know the difference between ‘purified’ and
‘spring’ water…appreciating the benefits of … spring water, versus ‘tap’ or
‘purified’ products” (MP 2). Thus in addition to being active, these
customers are interested in the value of natural health based products rather
than modified or purified varieties. As consumers of natural products, they are
typically more conscious of sustainability practices.
Those geographically situated near college campuses may be
considered as one market segment. They are psychographically well educated
and active, and demographically represent a younger population either with
low income or parental support. The college age set will respond to an
interactive internet and social media to complement their busy, technology
based lifestyles (Boone & Kurtz 282). Straightforward messages of
sustainable practices and value will attract the educated and price conscious
college consumer.
Seniors over 65 form another market segment. As the textbook
indicates, this segment “experienced economic hardship during childhood”,
and therefore may also be responsive to messages that emphasize high value
with low prices (Boone & Kurtz 284). They “value hard work”, and may

13. MP-13
therefore respond to messages of hard work inherent in the companies local
recycling and sustainability efforts (Boone & Kurtz 284). They “like to
associate with people of similar backgrounds”, while they are not necessarily
the first to try a new product (Boone & Kurtz 284). Integrating lifestyle
messages that are lifestyle and eco-conscious may make seniors feel they are
integrated into a particular culture group of peers with similar values, and will
make them feel that they are not the first among their peers to try this brand of
water. This group will be more receptive to television and radio messages.
Parents with active children under 18 are a segment largely influenced
by the wants and needs of their school aged children, “particularly in the area
of food” (Boone & Kurtz 282). Spending money on marketing to children,
making smaller portable bottles, and including messages that are fun or
entertaining will influence children and parents to select Blue Mountain Water
over other beverages. Parents will also be interested in purchasing nutritious
products for their children, so further highlighting the health benefits of
natural spring water as opposed to purified varieties will make parents feel
secure in their purchases. These active children will also receive “junior”
bottles designed and marketed especially for them, as they are on-the-go and
will presumably drink smaller quantities.
As Blue Mountain expands the company will continue to target these
same demographics in bordering states of New York, New Jersey, West
Virginia and Ohio. These bordering states will have more urban high traffic

14. MP-14
areas than Maryland and Delaware, where Blue Mountain may decide to
expand at a later date. Cities selected for expansion will initially focus on
urban areas in these states—as buzz marketing and recognition may be more
readily successful there than in rural areas. Initial campuses targeted include
somewhat elite competitive urban universities such as New York University,
Columbia University, Ohio State University University of Pennsylvania, and
Princeton University. In the surrounding geographic cities, the brand will
employ distribution at more select high end grocery stores, utilizing messages
that will attract seniors over 65 along with active parents with children. New
PR efforts will be utilized including buzz marketing, billboards, radio and
television advertisements to develop brand recognition and loyalty.
The Marketing Mix
Details of Blue Mountain’s proposed marketing mix are outlined in the
following discussion.
Product Strategy
Currently, Blue Mountain Spring Water is available in 500 ml, 750 ml, 1 liter
and 2 liter sizes for individual unit sales (e.g. the refrigerated section). The
500 ml bottle is also available in consumer 12 or 24 packs, the 750 ml in 12
packs and the 1 liter bottle may be purchased in consumer 6 packs. Each
bottle type is ergonomically shaped for easy carrying. The 2 liter bottle is
primarily used at home by families. In response to customer suggestions,
Blue Mountain is planning to launch an 8 oz size, designed with kids in
mind. A perfect size for a lunch box or a quick drink on the go, the “Junior”
fits easily in cup holders and has a non-tip design. Retail pack availability for
the “Junior” has not yet been finalized. Additional market research shows
positive reception of a 1.5 liter size and increased inquiries from segmented
retailers about custom labeled products.

15. MP-15
New products will include the introduction of a “junior” size bottle in
packs of eight, to be marketed toward children and their active parents. The
bottles will feature fun facts about physical activities and “green” ideas for
reusing or recycling the bottle. This will be further marketed through the
introduction of an outreach program to promote sustainability utilizing the
junior size bottles for promotions and demonstrations in regional K-8
classrooms.
Other new products will include a promotional line of branded
clothing such as t-shirts and hats. These can be worn by staff and distributed
through online contests and at promotional events. Additionally, buzz
marketing can be utilized on college campuses by employing select students
to wear the clothing and promote the product. This will aid in promoting the
product in the growing college demographic. Children may also receive the t-
shirts in sustainability marketing efforts.
The marketing mix will grow with and further promote the company’s
expansion in the region. Advertising campaigns must expand into new
regions which will include advertising in community newspapers, blogs, and
on billboards in select high traffic public areas. Social networking and
blogging will also expand over the next year to introduce active elements such
as a blog, and community spaces on Facebook and Twitter. In person
demonstrations will take place in growing markets to introduce the product.
As the company grows, Blue Mountain will attend trade shows to market the

16. MP-16
product to wholesalers who will distribute and further market the product
responsibly. In new markets and college markets, the value focus will be cost
based. In health markets and higher end grocery stores, the marketing focus
will focus more heavily on the ethics and intrinsic value of the product itself
compared to similar products, utilizing “value based pricing.”
Distribution Strategy
Blue Mountain Spring Water is currently sold at select natural food markets,
gourmet supermarkets and local stores throughout western and central
Pennsylvania and border-state areas (Ohio, New York and West Virginia).
Recent distribution growth includes college and university campus stores.
Opportunities for increased revenue exist within the regional areas and
through geographic expansion.
INSTRUCTIONS: Complete after receiving feedback for Written Assignment 8,
question 2.
After receiving your mentor’s feedback from your completed written assignment 8,
make any necessary corrections or adjustments and enter your Distribution
Strategy here.
The company is poised for expansion, and according to the SWOT
analysis this “could create some cash flow problems, require additional
employees”…and the “founders may lose sight of the company’s business
scope as it expands.” (MP 7) In order to cut service and distribution costs
while expanding the scope of the company, Blue Mountain will begin using a
longer channel of distribution over time span of three years, involving
wholesalers that practice selective retail distribution at high quality grocery
stores, college area stores, and health markets. The wholesaler can serve as an
“immediate source of funds”, outsourcing the distribution and cutting the cost

17. MP-17
of buying and selling (Boone & Kurtz 421). Blue Mountain will still want to
retain marketing information in order to retain a high quality image, so they
will “hire their own field representatives” who will “service retail accounts
with marketing information” (Boone & Kurtz 421). The wholesalers will
manage “actual sales transactions”, while Blue Mountain will have greater
control over retail relationships and marketing (Boone & Kurtz 421). This
strategy will enable cost reduction and ease the burden of expansion, while
enabling Blue Mountain to exercise agency in terms of marketing and
selective distribution intensity. Moving the goods physically to wholesalers
may present an added cost, but this can be alleviated by utilizing a only a
select few wholesalers who will receive bulk truck deliveries from the
company.
Promotional Strategy
Effectively communicating with consumers and retailers is essential for Blue
Mountain. Information about the company, our products and spring water in
general, is provided via the Internet, direct mailings and personal contact.
Blue Mountain strives to promote the value and benefits of its high-quality
spring water products. Our slogan “Blue Mountain is Nature’s Fountain!”
has received high recognition ratings by consumers and retailers.

18. MP-18
As part of overall trade dress and visual cues, the company will
develop a brand mark pictorial design that will be memorable and distinguish
the product from competitors (Boone & Kurtz 385). The brand mark will tie
together health and eco-conscious themes through the utilization of simple and
effective imagery, which will include an altered version of the universal
recycling symbol encasing a mountain. The recycling symbol is in the public
domain, meaning it is not trademarked and available to be used for this
purpose. The arrows will be blue and look like water, flowing over a blue
mountain lush with greenery, circling back under the mountain as a spring,
and circling back to the top of the mountain. On one side of the brandmark
next to the image of spring water will be the word “health”, on the other side
of the brandmark will be the word “nature”. Both words will be in green.
Underneath the brandmark the slogan” Mountain is Nature’s Fountain!” will
appear (MP 12). This logo will combine interests of health and eco-conscious
markets by further appealing to and promoting concepts of health and
sustainability. The brandmark will represent a cycle that the consumer is
implicated in. The packaging will be a simple light green color to further
emphasize eco-conscious motifs and encourage more attention to be drawn to
the brandmark. A text panel to the right of the word “nature” will state “30%
less plastic versus comparable size CSD beverage containers”, and give a few
facts about how spring water is different from purified and why it is a good
choice for the health conscious consumer (MP 3).

19. MP-19
In terms of packaging, the company will use as little plastic as
possible, and create an ergonomic design convenient and portable for active
adults and those at the gym. The company will consider easy open snap caps
that will save the consumer time and protect from spills, satisfying the first
major objective of packaging—protection from damage. The package will
assist in marketing the product by using as little plastic as possible, and by
stating so. Also it will be ergonomic, fit in traditional drink holders, and
portable, for active consumers. The company will also cater to children with
active parents by producing small portable bottles with reuse ideas on the
packaging, and fun facts for kids about being healthy and eco-conscious.
Blue Mountain will communicate product information to consumers and
retailers with a solid promotional strategy that will continue to promote the
value and benefit of the product and spring water in general. The company
growing company will continue its current effort of internet contact, with the
ultimate objective of developing targeted advertising campaigns, trade
promotions, and public relations efforts. All efforts will feature the brand
mark and endeavor to promote the slogan “Blue Mountain is Nature’s
Fountain!” The campaigns will deliver a cohesive message fusing messages of
health, advantages of spring water, and overall value.
The internet can facilitate both informative and reminder advertising.
Strategic ads in regional newspaper websites, local
health/fitness/sustainability blogs, and on select college students facebook

20. MP-20
pages can inform/remind the target markets that a product exists and create
demand (Boone & Kurtz 532). Blue Mountain’s web page can continue to
offer informative product information and will leverage a blog and social
networking pages to reach target demographics.
Traditional media will also be utilized. Print ads will appear in the
health and community sections of local newspapers, and press releases will
periodically be released to regional media. Strategically placed billboards will
also occupy high traffic community recreation spaces in order to target active
consumers.
It is recommended that due to the “high per reader cost” of direct mail,
that this method only be used to reach newer demographics with special offers
that have a high response rate—such as coupons for college students, or to a
select neighborhood where the product is just being introduced (Boone &
Kurtz 475). Buzz marketing may be utilized on college campuses, by hiring
select students to promote the product. Trade promotions will be periodically
leveraged in community gyms, health centers and specialty stores so that
consumers can try the product and learn about the product in a personal
manner.
As a result of expansion and a decision to use wholesalers, one great
marketing method could be tradeshows where the wholesalers can compare,
learn about, and purchase the product. This will give them a better initial idea
of the product and offer a chance to educate them about the benefits of spring

21. MP-21
water.
Pricing Strategy
As previously described, Blue Mountain offers consumers the best quality
bottled spring water available, at an affordable price, which requires
competitive awareness. Our products are competitively priced, relative to
other premium spring waters, but less than imported spring waters. Blue
Mountain has successfully achieved its goals through carefully planned
growth and by not offsetting high sales volumes with low prices.
Blue Mountain’s pricing will reflect growth objectives while aiming to
remain competitive in the marketplace. Profitability will be a main first
objective—the ability to cover expenses and providing an economic cushion
for the future (Boone & Kurtz 612). Blue Mountain will utilize the
incremental-cost pricing technique, which “which attempts to use only costs
directly attributable to a specific output in setting prices” (Boone & Kurtz
625). As Blue Mountain grows labor hours, manufacturing costs, demand, and
competition may remain variable—incremental-cost pricing will take this into
account and allow pricing contracts to vary in different climates. For
example, Blue Mountain may sell more in the hot summer months, and due to
labor decrease in the winter may charge less to obtain certain contracts—
while still maintaining the ability to breakeven.
The firm will also utilize the modified breakeven concept to sell at
different prices to specific markets, evaluating “consumer demand by

22. MP-22
comparing the number of products that must be sold at a variety of prices to
cover total cost with estimates of expected sales at the various prices” (Boone
& Kurtz 627). A range of profitable prices can target the various markets to
hit the breakeven point and generate profits. This concept will allow the
concept of “value” to mean different things in each market in order to remain
competitive (Boone & Kurtz 615). In markets where value is attributed to low
prices, or where Blue Mountain is a “fighting brand” introducing itself to the
market, the pricing will be lower (Boone & Kurtz 611). These markets may
include college students, and new regions of distribution. By contrast, health
food and natural high-end markets will cater to a demographic with higher
income and looking for non-price value in the product. These customers will
be charged more and be catered to with a “value priced” marketing strategy,
which emphasizes the benefits of the product in comparison to the
competition for a particular quality product (Boone & Kurtz 615). The firm
will seek to adjust volume of production by “maximizing sales within the
profit constraints” of each particular market by using the modified break even
concept—allowing varied marketing and pricing to sell more in each market
(Boone & Kurtz 619).
Blue Mountain seeks to offer the best quality at an affordable price, so
prestige value of the product must be taken into consideration. In all markets
the quality and exclusiveness of the company’s image must be emphasized.
Especially in high-end, value priced markets, the benefits of spring water,

23. MP-23
health, and eco-conscious concerns must dominate the image and be
emphasized even further in order to justify the cost of the product and remain
competitive with similar brands. The possible complexity of this pricing
strategy will be alleviated by creating only two tiers of pricing that are slightly
different from one another—one for the college value based set, and another
for the natural foods/health market consumers.
Budget, Schedule and Monitoring
Since Blue Mountain Spring Water began five years ago, it has enjoyed
consistent annual sales increases. The figures below depict historical sales
revenue and projected sales, including product line expansion, budgeted for
the next three years.
Sales Budget
Historical
2005 2006 2007 2008 2009
$750,000 $1.5 million $2.75 million $2.95 million $3.75 million
Projected
Blue Mountain will aim for a 50% sales increase each year to cover
overhead, expansion, advertising, and eventual cost of a wholesaler
INSTRUCTIONS: Complete as part of Written Assignment 11
Considering the other components of your marketing plan, insert your Projected
Sales for the next three years here.
2010
$ 5.25 million
2011
$ 7.35 million
2012
$ 10.29 million

24. MP-24
Expansion Schedule
The timeline for expanded distribution and the introduction of new products
is described below. Blue Mountain will closely monitor the implementation -
and evaluate the performance - of the following tasks.

25. MP-25
Year 1
 Launch of the “Junior” (8 oz. bottle) in retail packs of 8. This will
correspond with a sustainability effort in K-8 classrooms educating kids
about spring water and health benefits while demonstrating the product.
 Launch of website redesign, entry into social networking and viral marketing
communities.
 Hire 3-5 new employees to handle advertising and public relations efforts.
 Research option of wholesalers for cost reduction and further distribution.
Year 2
 Work with a wholesaler who will distribute to select high end retailers and
near college campuses in bordering states.
 Introduce product in high end grocery stores and college campuses in border
states.
 Launch targeted advertising and promotional campaigns in new regions
utilizing web and print ads, and product demonstrations.
 Expansion of production facilities to support launch into surrounding states.
Year 3
 Launch branded clothing line for promotional use.
 Fully launch product into all target markets in bordering states.
 Send agents into field to gain marketing information and assess future growth
areas.
Based upon industry trends, Blue Mountain anticipates continued growth in
the future and has no plans to exit the market. We are committed to remain
an independently owned private company. Therefore, Blue Mountain will
avoid mergers and public stock offerings. As discussed in this plan, Blue
Mountain intends to increase its market presence with controlled growth.