Heavy industrialization, especially the installation of chemical industries have increased air pollution as well as contaminated water reserves under the surface. Rapid increase in world population has increased the requirement of potable water. Sufi took a brave step and installed a complete high tech plant based on “Reverse Osmosis System” made by GE BETZ S.R.L; Italy and Blow Molding Machine made by Nisei ASB Pte Ltd; & AOKI TECHNICAL LABORATORY INC, Japan at 35-KM Gujranwala Road, Khori Stop, Kamoky.
We are producing the finest quality drinking water in 19 Ltr. 6 Ltr, 1500 ml, 650 ml and 330 ml packing. A full fledged laboratory equipped with experienced Chemists is analyzing quality of water round the clock. We are also getting analysis report of our water from official laboratories in Pakistan as well as known laboratories in Europe. We guarantee quality of this water to the concerns and stand responsible for any deficiency. Our commitment is to provide safe drinking water to our consumers.
Sufi Finest Drinking Water
Sufi Finest Drinking Water, the water with 100% balanced mineral content. Sufi Finest Drinking Water is the healthiest kind of mineral water and drinking this water each day can help you enhance your overall health and well-being.
It gives your body the right amount of nutrients.
With specialized state-of-the-art technology and under strict hygienic conditions it is ensured that the water is pure, crystal clear and odorless with reverse osmosis.
By ozonation it is ensured that the process is totally germ free.
It contains essential minerals such as iron, calcium and magnesium.
Sufi Finest Drinking Water, unlike tap water, is free of added chemicals as well as preservative-free and completely natural.
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Marketing Mix Report.
Product: Sufi (Finest drinking water).
Table of content:
Introduction…………………………………………………………………..…………….…4
Executive summary………………………………………………………….………………...4
Bottled water industry in Pakistan……………………………….……………………………5
Introduction to the company…………………………………...……………………………...6
History of Sufi............................................................................................................................6
Boston consulting group matrix……………………………………………………………….6
Product description……………………………………………………………………………7
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Introduction:
Marketing is the process to collect data and information about customers, competitors and the
market to design a product according to the needs and demands of consumer so that they can
satisfy their customers. Marketing includes putting the right product, on the right place, at the
right time so as to fulfill customer needs. We did a 4 P’s report on the Sufi finest drinking water.
We conducted an interview with the regional manager of Sufi finest drinking water Mr. Akhlaq
Ahmad to get the most useful information regarding the marketing mix of Sufi finest drinking
water and what techniques they use to lure the customers towards their company and also about
the bottled water industry.
Executive Summary:
The bottled water industry in Pakistan has been growing a lot recently. The industry grew by
15% as per the statistics in 2015. Some of the main reasons for this growth include the
unhygienic tap water available in Pakistan, and new companies coming into the bottled water
business and giving the more established companies a tough time.
Some of the bottled water brands in Pakistan are Nestle (pure life), Kinnely, Aquafina,Sufi(finest
drinking water). Nestle being the leader of the market of the companies mentioned. Sufi is one of
the established bottled water company of Pakistan. The most important marketing mix
components for Sufi are their product and distribution strategies, with pricing and promotion
having less importance in the marketing mix of Sufi water. Sufi tries to give the best quality
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product available in the market through its state of the art filtration plant. Sufi design their bottles
in various shapes and sizes, according to the needs of their target market. However, the pricing is
not controlled by Sufi. Whereas, there are not much promotional activities in the bottled water
industry, but some promotions are done through print media. Distribution being the most
important in marketing mix of Sufi, according to the marketing officials of Sufi.
Introduction to the water bottled industry in Pakistan:
Bottled water industry is one of the booming industries in Pakistan, the sales figures recorded at
the end of 2015 show that the industry had grown by 15% in the year. The market of bottled
water comprises of the companies like Nestle, Aquafina, Gourmet, Doce, Kinnely, Sufi,
Springly, New smart Aqua, Coral water etc. The annual consumption of bottled water in Pakistan
is at 1.27 billion liter water and the industry has an estimate sales of Rs. 20 billion. The cities
which consumes the most bottled water in Pakistan are Karachi, Lahore, Rawalpindi, Faisalabad,
Multan, Gujranwala, Hyderabad, Islamabad, and Peshawar respectively. Nestle is the leader of
the market, and since being the leader of the market it sets the prices, raises the product
standards, and has the most promotions in the market, whereas Aquafina comes in at second with
Kinely third, Sufi and Gourmet coming in at fourth and fifth respectively. This industry has been
growing very rapidly due to a number of reasons, top of the list is the unhealthy tap water
available in Pakistan. The people who drink the tap water get diseases like hepatitis, Cholera,
Diarrhea and Typhoid Fever etc, and these people get admitted in the hospital, get awareness
from their doctors not to drink the tap water and go for the bottled water instead. Another factor
of the rapid growth of the industry is that more people are getting educated and thus creating
more awareness amongst themselves regarding which water to drink.
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Introduction to the company:
Sufi Group is one of the largest industrial companies of Pakistan. It has been serving its
customers in the various fields of life and it promises to deliver the best quality product to the
Pakistani people, and make their lives full of best and high quality products. Whether the
products are for washing use eating and drinking purposes, Sufi has always delivered the best
products. Sufi is providing the following products to their customers:
In the industry of home care Sufi is proving detergents and dishwashers, in food and beverage
industry they are providing Semi cooked food, Edible oils, Mineral Water, carbonated Drinks
and other products are soup in the home care industry and poultry.
History of Sufi Group:
Sufi Group has been serving its customers for the last 64 years in many fields of life since it was
founded by Mr. Hadayatullah Sufi (late) in 1952. Since its foundation has been laid Sufi has
become one of the top brands available to the people of Pakistan, and it has worked for the
betterment of the people of Pakistan making their life easier since 1952. It has completed its
journey from getting the first manual production line of soap to the launch of frozen food with
the name of “simply Sufi”. During this time they have launched numerous number of products
with great success and most of this coming from the name Sufi, and from being the customer
oriented firm it is today.
How Sufi water identifies its marketing plans:
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Sufi water tries to plan its marketing strategies and its marketing mix by evaluating where it is
standing according to the Boston consulting matrix, whether they lies in the star bracket,
question mark, dog bracket or cash cow bracket. According to our survey Sufi water lies in the
start bracket of the Boston consulting matrix, the reason being the high industry growth rate of
the bottles water industry in Pakistan recently, and the another reason being the high market
share of Sufi water in the bottled water market. Other Sufi product like Sufi cola lies in the
question mark bracket of Boston consulting matrix, due to its high industry growth rate but its
low market share in the carbonated drinks industry of Pakistan.
Product:
Sufi, the finest drinking water, is designed according to the customer needs. Sufi water is
perfectly mineral balanced and healthy for the consumers. Sufi water is purified and packed
under completely hygienic environment. The water is purified through a special process, which
is a differential advantage for the company. The process includes American filtration plant
through which the water is passed to get purified. The water is drilled out 700 feet under the
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ground. The raw water is poured into a tank which is then sent to a feed pump through pressure
for purification, this water if pumped forward in a tank containing UV light which is used to kill
all the bacteria from the water, and remaining impurities are then taken out through sand and
carbon filter respectively. Then the most important stages of the process takes place that is pre-
reverse osmosis and reverse osmosis itself, through these all the inorganic particles are removed.
Balanced amount of mineral are then added in the water, then the water is passed through a
process known as ozonation which makes sure that no bacteria will ever enter the water and
that’s how Sufi gets the finest drinking water. After this the manufactured bottles are passed
through some sort of special light and makes sue that these bottles are completely germs free.
Right after the bottles is filled with the finest drinking water. These bottles are then closed
through automated capes and will ensure the quality of water. Even after the bottles are filled
with water, the water is again tested in the laboratories. The quality of the product for the
company is their top priority, so that the customer can have the value of their spending. Sufi is
the only company in Pakistan which is certified by ISO. Apart from making their product of the
highest quality Sufi also used their packaging to increase the awareness amongst its buyers, that
Sufi water is the best mineral water available in the market. Sufi gives the following information
on theirs packaging that their water contains calcium potassium, magnesium etc which is
essential for the human body Sufi also uses high quality labeling which gives their product a
different and lucrative identity in the market.
Sufi delivers their water in different shapes and sizes like 500 ml water, which is very easy for an
individual to carry. It is the most preferred size of bottled water in the production line of Sufi.
Other sizes include 1.5 liter and 18.9 liter which is most preferred by the customers at home and
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offices. Sufi provides their customers with a variety of options so that the customers can choose
the best option for themselves.
Product Lifecycle curve:
The product Sufi water is in the growth stage of the product lifecycle curve, the reason for it
being the growth stage is that the bottled water industry is growing very rapidly in Pakistan. Sufi
has a great number of opportunities to grow its product in more areas of Pakistan other than
Lahore and the other areas of Punjab. These increasing opportunities are due to the increase in
the level of awareness amongst the people of Pakistan regarding the diseases caused by
unhygienic water. The people have started to avoid the tap water and have started switching
towards the mineral water or the bottled water brands like Sufi. Sufi is also growing due to its
high quality product and its special techniques to prepare and to prevent its product to the final
consumers. Another reason for the growth of Sufi water is that Sufi is giving the best value to its
customers for the price they are charging, they fully encourage their customers to get the water
tested from any laboratory the customer wants to, which is why the confidence for Sufi in people
is also growing.
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Price:
Pricing is one of the most important and flexible component of the marketing mix but when it
comes to Sufi water it does not have that much importance. Sufi tries to give its customers the
maximum value for the price, it is charging. They are trying to give their customers the best
product for the best price, but Sufi has no contribution in setting the prices in the bottled water
market. The prices are set by the leaders of the market, which is nestle, nestle set the prices and it
does not matter at what price the Sufi is selling their product to the retailers, they sell it to the
final customers at the price of nestle.
Factors effecting prices:
The main factors that can affect prices of Sufi bottled water in Pakistan is government
regulations and the taxes imposed by the government, like if the prices of electricity increases by
the government, it increases cost which results in the increase in price of Sufi water.
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Price list of Sufi for the retailers and the final customers:
Price list for retailers:
500 ml Rs.500/carton Rs.20.83/carton
1500 ml Rs.500/carton Rs.41.66/bottle
5 liter Rs.370/carton Rs.92.5/bottle
Price list for final customers:
500 ml Rs.600/carton Rs.25/carton
1500 ml Rs.540/carton Rs.45/carton
5 liter Rs.440/carton Rs.110/carton
• 500 ml carton = 24 bottles
• 1500 ml carton = 12 bottles
• 5 liter carton = 4 bottles
Distribution:
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The most important component of the marketing mix for Sufi bottled water is distribution. This
means to place the bottles at the right place according to the needs of customers. The availability
is the key in the stimulation of demand. The Sufi water uses an intensive strategy of distribution,
which means they place their bottles at every retailer or departmental stores, to maintain a place
in the market and to compete with the competitors like Nestle, Aquafina, kinnely etc. Besides
retailing Sufi also focusing on institutional sales, they are placing Sufi water bottles in different
universities like University of central Punjab. Sufi distributes their water both directly and
indirectly through different distribution channels. They distribute directly through sales
team/force, which interact directly with the final consumers and spread awareness about the
finest drinking water i.e Sufi. Whereas Sufi also uses indirect distribution network, in which key
account officers distribute Sufi water at different retailing stores which then passed on to the end
users. They give their sales person a small area to distribute Sufi water so that he can place the
water in every retail store. According to the Sufi official if they give their sales team a large area
to distribute, they only place the water in main stores and do not distribute the water to the small
retailers doing their business in the remote market.
Channels of Distribution:
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Target Market:
The main target market for Sufi water is the big cities of Punjab, like Lahore, Islamabad,
Faisalabad etc, but their main focus is in Lahore. Beside general public the target market of Sufi
water is institutional consumers, like universities, hospitals, tobacco shops etc. their regular
customers are UCP, FAST, FC College, and Superior University etc.
Market Segmentation:
Market segmentation is dividing your target market into segmentations. Sufi water is following
geographic segmentation to distribute Sufi water in different areas of different cities. Like when
distributing Sufi water in Lahore they further divides the city into different areas and towns,
which help them distributing the Sufi water at every retail store, university/colleges, hospitals
and tourism places.
Promotion:
Promotion is an essential component of marketing mix for some companies, but when it comes
to Sufi water it is a less important component. Sufi uses three types of promotional techniques,
print media, personal selling and sales promotional techniques. Sufi water does most of its
promotions on print media rather than using electronic media, since using electronic media is not
the trend of the bottled water market, as we see very less advertisements of bottled water on
electronic media. Sufi water uses print media in the forms of newspaper, magazines, flyers and
billboards. Sufi water also uses personal selling techniques, they send their sales teams from door
to door in order to make their target market aware of their product and its benefits. They tell their
target market that how their water is purified and how many mineral are present in their water
14. 14
and how their water is better than their competitors. Sales promotion is another technique used
by Sufi water, which is mostly used during off-seasons. In these sales promotional techniques
Sufi tries to offer their customers something alluring to their customers which may increase the
demand during these off-seasons. Examples are that Sufi water once offered their customers that
the first 18.9 liter bottle they purchase will be given to them without any security amounts
charged, similarly they offered a free 1.5 liter bottle on buying a carton of 1.5 liter bottle.
However the Sufi officials feel that the promotional efforts in the bottled water industry is not up
to the standards of other industries like detergent industries.
SWOT Analysis:
Strength: The strength of Sufi finest drinking water is the high quality product they are
producing in the state of the art plant in which they use the best filtration technique to get the
finest drinking water, and their strong distribution line in the remote areas of Punjab and
especially Lahore is also the strength of Sufi water. The Name Sufi is a strength itself. They are
the only company which is certified by ISO in Pakistan.
Weakness: The weakness of sufi water is that they are not leading the market of the bottled water
industry and they cannot do much about the pricing, since all the pricing is set by the leaders of
the market which happens to be Nestle. Less promotion can also be considered the weakness of
Sufi finest drinking water, since the promotion is only limited to the print media and not on other
sources of media like electronic and social media.
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Opportunities: They can expand their sales in other areas of Pakistan where Sufi’s bottled water
is not so popular. There is a good opportunity for Sufi to expand their sales as the bottled water
industry has been continuously growing in Pakistan.
Threats: the biggest threat to the Sufi finest drinking water is their competitors like Nestle,
Aquafina, Kinnely, and Gourmet. Another threat is the report that came out a few months ago
which stated that many are the bottled water brands are unsafe for drinking, even though Sufi
name was not in the list, it can still cause some distrust amongst the customers of Sufi water.