DEVELOPMENT OF MARKETING PLAN FOR A NEW BRAND OF PURIFIED WATER

Research Paper On DEVELOPMENT OF MARKETING PLAN FOR A NEW BRAND OF PURIFIED WATER
SUBMITTED TO:
MD. MONIMUL HOQUE RESEARCH SUPERVISOR, BUSINESS ADMINISTRATION DISCIPLINE KHULNA UNIVERSITY

SUBMITTED BY:
FARHANA AFRIN ROLL NO: 990307 BUSINESS ADMINISTRATION DISCIPLINE KHULNA UNIVERSITY

BUSINESS ADMINISTRATION DISCIPLINE SCHOOL OF MANAGEMENT & BUSINESS ADMINISTRATION KHULNA UNIVERSITY, KHULNA - 9208.

DATE OF SUBMISSION 28th SEPTEMBER 2003.

28th September 2003

Mr. Monimul Hoque Assistant Professor Business Administration Discipline Khulna University Khulna-9208.

Dear Sir, I am pleased to submit my research paper on " Development of marketing plan for a new brand of purified water" as you have directed me to prepare it as a prerequisite of my graduation requirement. I have put my honest and sincere effort to give this report a presentable shape and make it informative as possible, considering the constraints. I believe this report will give a scenario on the marketing prospective for a new brand of purified water in Bangladesh. I shall be glad to answer any of your query related to the report.

Sincerely yours Farhana Afrin. .

CONTENTS
Introduction
Part I
1.1 Water in our planet 1.2 Sources of pure water 1.2.1 Physical process of purifying water in home 1.2.2 Chemical process of purifying water in home 1.3 Reasons behind increasing the use of bottled water 1.3.1 Hygienic reason 1.3.2 Non hygienic reason 1.4 Purified bottled water and its classification 1.4.1 Classification on the basis of water treatment process 1.4.2 Classification on the basis of mineral content 1.5 Sources of purified water 1.6 Modern water purification system 1.7 Purification of natural spring water 1.8 World market of bottled water 1.8.1 world market share 1.8.2 Bottled water industry segmentation

1.8.3 Water composition of some renowned spring water 1.8.4 Price of some international brand spring water 1.9 Harmful effects of purified water

PART II
2.1 Presentation of survey data 2.1.1 Data collected from retailer's survey 2.1.2 Data collected from customer's survey 2.2 Findings from retailers survey 2.3 Findings from customers survey 2.4 Trend of tactical mixes of purified water 2.4.1Bottled water 2.4.2 Pricing of purified bottled water 2.4.3 Placing of purified water 2.4.4 Promotion of purified water 2.5 Summary of market survey

PART III
3.1 Newly branded purified water 3.1.1 Portfolio of tactical mixes of Vee purified mineral water 3.1.1.1 Vee purified mineral water 3.1.1.2 Pricing of Vee purified mineral water

3.1.1.3 Placing of Vee purified mineral water 3.1.1.4 Promotion of Vee purified mineral water 3.1.2 Benefits of different types of Vee purified mineral water

3.2 Situation analysis and marketing objectives 3.2.1 Executive summary 3.2.2 Situational analysis 3.2.3 Available competitors 3.2.4 SWOT analysis 3.3.5 Product positioning and segmentation 3.3.6 Promotional campaign

Conclusion Appendix Bibliography

EXECUTIVE SUMMARY
Water is the most vital element for life and all the people in the world look for pure and safe water for drinking. Although most of the city people depends on tap water, but now the confidence on the quality on tap water is decreasing day by day due to presence of different impurities. As a result people increasingly are turning to home water treatment systems or purchasing of bottled water to ensure good quality water for their use. According to the International Bottled Water Association (IBWA) the sales of bottled water have increased by five-fold over the last decade, and consumption per capita has increased 15 fold. The sale of purified water is becoming a booming business in our country. At present more than thirty companies are involved in this promising business. The present purified water market is almost forty crore Taka and the market growth is about 15%. In the present market 'Fresh' is enjoying the highest market share followed by Pran natural mineral water. In respect of safety and purity Duncan has the highest acceptability to the customers. Besides this Aqua, Libra, Yes, Mountain are also doing good in

their business. The sale of purified water is not homogeneous throughout the all area and most of the most of the sales occur mainly in urban area. Although the market is growing rapidly still most of the consumers are not satisfy with the quality of the marketed water. In the present situation it is very difficult to establish a new brand of purified water in the market. In the term paper the marketing plan of Vee mineral water has been described to established it in the market which reveals that to establish a new brand in the market, the parent company must have strong financial background for huge investment, ensure quality water, provide new product features, follow ongoing pricing system, have strong distribution channel, go for well planned promotional strategy.

Introduction
Problem statement Feasibility of introducing a new mineral water brand in the market Origin of the report The research paper has been prepared as a prerequisite of the graduation requirement under the supervision of Mr. Monimul Hoque, Assistant Professor and the Research supervisor. The paper has been authorized on July 13, 2003 and the date of submission is September 28, 2003. Broad objective Development of marketing plan for Vee purified mineral water, newly launched purified bottled water in the market.

Specific objectives 1 To determine the market size, growth, market share of different available brands of purified water. 2 To have an idea about the consumer class and their behavior. 3 To have an analysis of tactical mixes (4Ps) for the purified water. 4 To come up with a complete situational analysis and marketing objectives of this brand with appropriate strategy. Sources of data The report has been prepared with the help of both primary and secondary data. Primary data
For collecting primary data, a questionnaire was prepared for the different wholesalers and retailers of purified water to get a scenario about the present situation. Another questionnaire was prepared for the customer to have idea about the present customer trend. Secondary data

Books, records and other written materials relevant to the purpose and scope of the report have been taken as the source of secondary data. Methodology This study applies an inductive deductive approach. Market and customer survey has been done to get the answers of first and second objectives. Moreover on the basis of primary research and interview second and third objectives has been developed. Both

qualitative and quantitative methods have been adopted in collecting and analyzing information. The qualitative information has been analyzed along with the quantitative information. Instrument Both open ended, close ended and dichotomous types questions were used. It incorporated nominal and interval scale type of questions to elicit the required information. Sampling method Non-probabilistic convenience sampling has been done for both wholesalers/ retailers and customers. Sample size Fifty stores of retailers/wholesalers were taken to have idea about present market situation. Fifty customers (both male and female) were taken for survey to find out the customers trend. Limitation of reports The survey is conducted only in Dhaka city. It may not represent the scenario of whole country. Time constraint was also a limitation for the development of report.

Part I
1.1 WATER IN OUR PLANET
In our world three fourth of the surface is covered with water and 97% of all the water on our planet is in the oceans. The Atlantic, Artic, Antarctic, Indian and Pacific oceans are the major source of the water. About 2% of the earth's water is ice, 0.8% of water

comes from ground water and less than 0.2% from rivers, lakes, clouds and springs. Water is the vital elements for the survival of all living being. The human body contains over 75% water. Water is the transport system, which moves nutrients around the body as well as carrying waste out of the body. Water breaks down food, keeps the body temperature balanced and keeps the skin elastic. People can live for week without food but only a few days without water. 97% of the earth's water is salt water and can only be used if processed by desalination plants, 2% is polluted or part of the ice cap, and there is only less than 1% percent which is actually available for human use.

1.2 SOURCES OF PURE WATER

The human being can't use 99% of the natural water for regular purpose due to saltiness or impurities. For pure and safe water people depend on spring water, well water, tube well and tap water. Expecting safe, drinkable water to flow from household taps once was an unquestioned assumption. This assumption was founded upon various acts of faith in progress, technology, and the local water utility. For many people, however, this comforting assumption no longer holds true. This is because drinking unfiltered tap water can be hazardous for health because of

things like parasite, chlorine, fluorides and dioxins. As a result householders increasingly are turning to home water treatment systems to ensure good quality water in their homes.

The different process by which water can be easily purified in home can be classified broadly into two typesi) Physical process ii) Chemical process

1.2.1 Physical process of purifying water in home Boiling and filtration are two common processes by which water can be purified quickly and easily. Boiling: Vigorous boiling for one minute will kill any disease-causing microorganisms present in water. The flat taste of boiled water can be improved by pouring it back and forth from one container to another, by allowing it to stand for a few hours, or by adding a small pinch salt for each quart of water boiled. Filtration: Activated carbon filters are excellent at removing organic contamination and pesticides from water. They do not remove inorganic chemicals and heavy metals like lead. These require ceramic filters, which can also remove Cryptosporidium and

Giardia as well as rust and dirt. So both filter types should be used.

1.2.2 Chemical process of purifying water in home When boiling and filtration is not practical, chemical disinfections is used. The two chemicals commonly used are Chlorine and Iodine. Chlorine bleach: Common household bleach contains a chlorine compound that will disinfect water. One of the easiest methods is the chlorine tablets treatment. Chlorine tablets containing the necessary dosage for drinking water disinfections can be purchased in a commercially prepared form. This tablet is available from drug and sporting goods stores and should be used as stated in the instructions. After disinfections with chlorine the water possesses chlorine odor. If the treated water has too strong a chlorine taste, it can be made more pleasing by allowing the water to stand exposed to the air for a few hours or pouring it from one clean container to another several times. Iodine treatment Commercially prepared iodine tablets containing the necessary dosage for drinking water disinfections can be purchased from

drug stores. This should be used as stated. The use of iodine as a means of disinfections may not be effective in guarding against exposure to Giardia or Cryptosporidium. Now a days different sophisticated device are available to purify water in home. The purchase frequency of home water treatment device has increased from about 3.4 million in 1991 to an expected sale of 4.7 million in 1996. Sales were expected to reach 6 million by 2000. But the home water treatment system is expensive as well as inconvenient for which the use of bottled water is increasing day by day.

1.3

REASONS

BEHIND

INCREASING

THE

USE

OF

BOTTLED WATER
The water quality awareness among people is increasing day by day. Consumption of bottled water for human drinking purposed is growing enormously all over the world mainly for the following reasons. 1.3.1 Hygienic reason The quality and purity of water is vitally important for the health. People's consciousness about water quality has been raised recently due to several widely reported incidents of public drinking water-endangering health and even causing death. Diarrhea, Cholera, HIV-such water-borne illnesses are more prevalent in those areas where people are not getting quality

water. More than 600 waterborne disease outbreaks have been reported by the US Centers for Disease Control since 1971. In most of the cities of the world chlorine is used for killing bacteria in water. But this chlorine produces powerful carcinogenic residues like dioxin. Studies have shown that the risk of bladder cancer is doubled if someone drinks chlorine treated water. Chlorination also destroys Vitamin E in the body, which can lead to heart problems and has been linked to clog arteries. In many areas there is the tradition to fluoridate them tap water on the pretext that this will protect tooth decay. Fluoride is the most common toxin used in rat poison and a recent study of 156 cancer deaths discovered that fluoride accumulates in the body and may cause cancer and other fatal diseases. But the worst news is that drinking fluoridated water weakens the bones by breaking down the bone collagen- the fabric, which binds the minerals together.

Because of all the publicity, even people in good health, who are unlikely to suffer infection from tap water, now are more concerned about their water quality. Many are considering bottled water and home water treatments options. According to the report of United Nations 1.75 billion people in the world lack adequate drinking water and that more than 3

percent of all deaths in developing countries are directly related to contaminated drinking water. 1.3.2 Non hygienic reason Taste and odor are other reasons for which people like to drink bottle water. In western country some of the company gives light flavor in water, which increases the consumers acceptability. A national poll found that 43% of Americans choose bottle water because they worry about unhealthy tap water, 33% choose it for flavor, and rests cite both reasons. Many people drink bottle water due to fashion. Especially in different occasions it has become tradition to serve bottle water. Portability is another reasons behind increasing the use of bottle water as it offers the opportunity for instant use.

1.4 BOTTLED WATER AND ITS CLASSIFICATION

The International Bottled Water Association (IBWA) defines bottled water as sealed in a sanitary container, to be sold for human consumption. Bottled water has been classified on the basis of water treatment process and mineral content. 1.4.1 Classification on the basis of water treatment process From a processing perspectives bottle water has been classified into two broad categories (a) Purified natural water (b) Purified drinking water

(a) Purified natural water The term natural is usually applied in the bottled water industry when the product receives minimal treatment. Under the International Bottled Water Association (IBWA) definitions, natural water may be bottled spring, artesian or well water, which is derived from an underground formation and is not derived from a municipal system for public water supply. Under the IBWA model bottled water code, natural water cannot be modified by the deletion or addition of dissolved solids. Natural water, whether spring, mineral, artesian or well water, may be of acceptable quality in its untreated state for human consumption. If this is true, mineral filtration and disinfections treatment is typically employed. (b) Purified drinking water Water obtained from a public supply is usually treated by the bottler and is marketed as drinking water. It can't be designated as natural even if the source of the public supply is a spring well of artesian well. Purified drinking water is water with a very low mineral content (less than 10mg/L). So most often minerals are added to it before marketed. 1.4.2 Classification on the basis of mineral content Again on the basis of mineral content bottled water can be classified as(a) Non-mineral water (b) Mineral water

(a) Non-mineral water Purified water in bottle which contains less than 250mg/L (or 250 parts per million) of Total Dissolved Solids (TDS) is known as nonmineral water. It is also known as spring water. The quantity of dissolved solids is technically assessed through a lab test were by a liter of water is evaporated at 180C and the residual quantity of minerals and salts is weighed. This type of water is recommended for newborn babies or people with sensitive kidneys. (b) Mineral water Purified water, which contains more than 250mg/L of Total Dissolved Solids (TDS), is known as mineral water. Mineral water is also classified as followsLight mineral water: The TDS of this water is between 250 to 500 mg/L. Light mineral water is recommend for anybody who wants to compromise the refreshing taste with a moderate replenishment of minerals such as athletes and outdoor workers. Mineral water: The TDS of this water is between 500 to 1000 mg/L. The taste is affected by the chemical physical content of the water. It is recommended for the people for moderate mineral deficiency. Heavy water:

The TDS of this type of water is above 1000 mg/L. It is recommended for the people of stronger mineral deficiency. In some cases use under medical supervision is recommended.

1.5 SOURCES OF PURIFIED WATER

The bottled water companies mainly use the following four sources for collecting and purifying water (i) Spring water (ii) Wells (iii) Artesian wells (iv) Public water (i) Spring water Spring water sources are sources from which water flows naturally (without any manmade assistance) to the earth's surface from an underground formation (ii) Wells Wells are holes bored, drilled or otherwise constructed in the ground, which tap the water of an underground aquifer (iii) Artesian wells Artesian wells are wells, which tap into a confined aquifer in which the water level stands above, thereby creating an artesian head. Because of this head of pressure, water flows of its own accord from the well.

(iv) Public water Public water is water, which is supplied by municipalities or private companies for the general public and is distributed through a system of conduits to the end users. Public water source may infact be springs, wells, artesian wells or surface bodies of water (including sea water which is desalinated). Public water is often subjected to purification or treatment processes prior to distribution, such as sand filtration, carbon filtration and chlorine injection. It is rare that bottled water companies derive their water directly from open surface of world, such as lakes, rivers, or ponds.

1.6 MODERN WATER PURIFICATION SYSTEM

How a company process the water before bottling depends not only on he composition of the source water, but also the actual product the bottler wishes to market. The modern purification technology is a ten-step purification process, which removes all types of impurities and contaminants from water. The result is clean, great-tasting water, which is second to none in terms of purity. Step 1- Sediment filter The complex purification process begins with a simple, pleatedpaper sediment filter. This filter traps relatively large particles, which may be present in the water like dirt, sand, and grit. It is necessary to start the process with this basic step in order to remove these large particles which could foul or clog the more sensitive equipment used at later stages.

Generally the initial sediment filter is rated at 10 microns (a micron is one-millionth of a meter or 1/25000th of an inch.) Step 2- Ion exchange The next step is the removal of various metallic elements through a process known as ion exchange, sometimes referred to as water softening. Ion exchange utilizes large tanks, which are filled with a special, negatively charged resin. The resin serves as a reservoir for large numbers of positively charge potassium ions. As the water passes through the ion exchange system, metallic ions, which carry a strong positive charge, displace the more weakly charged potassium ions. The metallic ions are thus trapped via electromagnetic attraction to the resin particles. The ion exchange beds are then automatically cleansed and exenterated at prescribed intervals based on water volume. Ion exchange provides highly effective removal of the metals responsible for pipe scaling and deposits. The process also removes various heavy metals, such as lead, mercury, iron, and cadmium, which have been associated with well-publicized health concerns. It is important to remove metals early in the purification process to protect the more sensitive technology used in later steps, since high levels of metals can damage this equipment. Step 3- Activated carbon

Once the water passes through the ion exchange system it moves into and oversized granular activated carbon bed. Carbon filtration (also known as charcoal filtration), which utilizes a process known as adsorption, is a particularly effective technique for chlorine removal. Pesticides, herbicides, and other organic contaminants (especially volatile organics) are also removed at this stage. Carbon also does an excellent job of removing thiohalomethanes (THMs) from the water. THMs are a class of chemicals, which results from the interaction of chlorine and decaying organic matter in the public water supply. These chemicals are known carcinogens, and the high levels found in local water supplies have been cause for concern in recent years. Step-4 Five-micron carbon block filter The five-micron carbon block filter is designed to capture extremely small particles present in the water. The five-micron size designation indicates that the filter will capture particles larger than five millionths of a meter. The filter itself is composed of an extruded block of carbon, providing an additional measure of adsorptive capacity for the removal of chlorine and organic contaminants. The extruded carbon block filter is manufactured to very tight tolerances, thereby providing optimal permeability and porosity characteristics for adsorbing and removing contaminants.

Step-5 One-micron carbon block filter The one-micron carbon block filter immediately follows its fivemicron counterpart. At this stage, particles as small as one millionth of a meter are rapped and removed from the water. Filters of this extraordinary small pore size are capable of eliminating responsible event for the Cryptosporidium waterborne cyst, an organism outbreaks. numerous illness

Cryptosporidium in the water supply comes encased in an oocyst, or egg, and egg, which do not hatch until it finds a suitable host, such as the human gastrointestinal tract. It is important to note that one of the biggest concerns with organisms of this type is that they cannot be eradicated via conventional chlorination and sand filtration techniques commonly employed by municipal water systems. However, these oocyst are between 4 and 6 microns in diameter, so they can't pass through the one-micron carbon block filter. Once the water has passed through the one-micron filter, virtually all of the suspended particles have been trapped and removed. However, dissolved substances can still remain in the water. Dissolved solids cannot be removed via conventional filtration. Step 6- Ultraviolet disinfections Two form of chemical free disinfections technology are employed to ensure that the purified water remains absolutely and completely free from any sort of microbiological contamination. Ultraviolet disinfections is the first of these technologies.

At this step of the process, the water passes through a special chamber, which houses a large ultraviolet light source. This ultraviolet light acts as a powerful sterilizing agent. If any bacteria, viruses, or other microbiological contaminants are present in the water, the ultraviolet light at this particular wavelength destroys the genetic material within these organisms, eliminating the possibility of bacterial or viral reproduction and proliferation. The organisms quickly die and are captured and removed during the reverse osmosis purification process. Step 7- Dual pass reverse osmosis Osmosis is a naturally occurring process whereby water passes across a membrane due to pressure differential between one side of the membrane and the other. In reverse osmosis, high pressure is used to force water across a membrane while impurities are left behind. In other words, the high pressure causes the impurities to become more concentrated on one side of the membrane. Only the pure water is able to cross the membrane; even the dissolved impurities, which cannot be removed by conventional filtration, are captured and eliminated by reverse osmosis purification system. Step 8- Ozonation The second phase of chemical-free disinfections is known as ozonation. Ozonation relies on oxygen to ensure that the purified water remains free of any possible microbiological contamination. The ozonation process involves taking basic molecular oxygen

and passing this oxygen through a special chamber in which it is exposed to a high voltage electrical charge. The electricity causes the oxygen molecules to split and recombine in a higher energy form known as ozone. This ozone is then continuously circulated through the purified water. Ozone is a very powerful disinfectant and is capable of oxidizing a very broad range of contaminants. In fact, ozone is highly effective against many types of impurities and organisms, such as Cryptosporidium, that are utterly impervious to chlorination. This process is about 1500 times more effective than chlorine as an oxidant. Ozone is not stable state for oxygen, and over the course of a few minutes it returns to its natural O2 state. This state-of-the-art disinfections system is simple, yet extremely powerful. And best of all, it relies on nothing more than all-natural oxygen -absolutely no strange chemicals or additives. Step 9- Mineralization This process is used to provide crispness and taste to water. The mineral injection system reconstitutes the purified water with food grade minerals so that the crisp taste is put back into the water. The injection formula is usually a concentrate of minerals including calcium, magnesium, sodium, chloride, sulfate, bicarbonate, and carbonate. The mineral content of the water after mineralization is typically between 100 and 200mg/L of total dissolved solids. Step 10- Storage, recirculation and dispensing

After the water has passed through the preceding nine steps it moves into the storage and recirculation pass. This storage and recirculation system has been designated so that water will retain its exceptionally high purity and will not come into contact with any materials or substances, which could in any way compromise the quality of the water. Storage system should entirely of stainless steel. Many people are unaware that brass, a key component of many plumbing systems, can be a primary source of lead contamination. By using only stainless steel, this problem, and the problem of potential interactions with other substances, is completely avoided. When a bottle is filled, the water should be drawn directly from the continuous recirculation loop. Like the water storage system, the water dispensers should utilize stainless steel on all water contact surfaces. As the water passes through the dispenser into the bottle, sufficient ozone should present in the water to effectively resterilize the container.

Fig 1: Steps of water purification technique

1.7 PURIFICATION OF NATURAL SPRING WATER

A typical treatment process is applied to process the spring water in order to meet the FDA compliance. Basically the spring water is filtered and ozonated to avoid sedimentation and bacterial contamination and to eliminate certain tastes and odors. A five-micron, rather than a ten-micron filter, is recommended here to remove Giardia cysts. The activated carbon filtration is optional; however, many bottlers use it as a precaution to remove organic substances, which may affect the taste or odor of the water, and to remove any unexpected contaminants from the

water. A one-micron filter should be used if the threat of Cryptosporidium exists. The ultraviolet disinfections treatment shown is also optional can be used to prevent the activated carbon filter from becoming a breeding ground for microorganisms. It should be noted that bottling plants are generally located close to the water source so that a pipeline may be used to transfer water from the source to the plant. In some cases the water source and the bottling plant are not in the same location and the water must be transported by tanker truck to the plant. This situation is most prevalent in the spring water business since high quality springs are typically located in remote, protected environments, which have not been encroached upon, by civilization and industry. The tanker used to transport the water must be of food grade material such as stainless steel and should de dedicated solely to water transport and storage. It is usually recommended that water transferred by tanker be treated by ozonation prior to loading into the tanker. This will disinfect the spring water and the residual ozone in the water will disinfect the inside of the tanker, thereby assuring that bacteria are not transferred from the spring or the tanker to the bottling plant. Ultraviolet radiation is an alternate disinfections treatment, which may be used at the transfer site.

1.8 WORLD MARKET OF BOTTLED WATER

Whatever the image, the sales of bottled water is a booming

business. The International Bottled Water Association (IBWA), the trade association representing the bottled water industry, says the sales of bottled water have increased by five-fold over the last decade, and consumption per capita has increased 15 fold, with approximately 1 in 15 households using bottled drinking water. About 700 brands are sold in the United States, with consumers spending about $ 2.7 billion on bottled water per year. 1.8.1 World market share The leaders in the bottled water business based on total estimated 1999 dollar sales (at wholesale) according to Beverage Marketing Corporation are: Table 1: Bottled water industry leaders Positi on 1 2 3 4 5 6 7 8 9 10 Company Perrier Group of America Suntory Mckesson Water Products Market share 28.9% 9.2% 7.6%

Company Danone International 7.2% Pepsi-Cola 5.5% Crystal Geyser 2.9% US Filter 2.0% Coca-Cola 1.4% Aberfoyle Springs 1.45 Glacier water 1.1% All Others** 32.7% ** All others make up over 900

brands

Table 2: The leading brands for 1999 Positi on 1 2 3 4 5 6 7 8 9 10 Poland spring Arrowhead Aquafina Evian Sparkletts Zephyrills Ozarka Deer park Crystal springs Alpine spring Brands Sales volume (Million) $406.2 $315.0 $289.0 $219.0 $246.5 $147.5 $144.6 $167.4 $157.4 $151.4 Market share 7.8% 6.0% 5.5% 4.2% 4.7% 2.8% 2.7% 3.2% 3.0% 2.9%

1.8.2 Bottled water industry segmentation Within the bottled water business there are two distinct industries and segmentation. The first one is biggest by volume, the five-gallon or returnable container water business. Companies like Arrowhead, Sparkletts and Hinckley & Schimitt are leaders in this field. Often associated with the office cooler, bottlers also use two and one half as well as one-gallon containers for supermarket distribution. This type of bottled water is sold as an alternative of tap water. The second one is small sized bottle water. Premium bottled waters, such as Evian, Vittel and Perrier, are sold as soft drink

and alcohol alternatives. Packaging range from six ounce to two liters and from custom glass and PET plastic to aluminum cans. 1.8.3 Water constituents of some renowned spring water Table 3: Ice Mountain Natural spring water Sl. no. 1 2 3 4 5 6 7 8 9 Constituent s Bicarbonate Chloride Sulfate Calcium Magnesium Potassium Sodium TDS pH Amount (mg/L) 46.1 1.1 4.7 1.3 1.3 0.8 1.1 19.0 6.98

Table 4: Panna natural Spring water Sl.No Constituent s 1 2 3 4 5 6 7 Calcium Sulphate Magnesium Potassium Bicarbonate Chloride TDS Amoun t (mg/L) 3.6 1.5 1.3 4.1 21.0 2.7 41.0

Table 5:Evian natural spring water

Sl.No

Constituen ts

Amou nt (mg/L) 35.7 2.2 10 78 23 0.75 5.5 5.8 7.18

1 2 3 4 5 6 7 8 9

Bicarbonate Chloride Sulfate Calcium Magnesium Potassium Sodium Nitrate pH

Table 6: Black mountain spring water Sl.No Constituen ts 1 2 3 4 5 6 7 Calcium Sodium Magnesium Potassium Chloride pH TDS Amou nt (mg/L) 25 8.3 0.73 0.67 10 7.2 14

1.8.4 Price of some international brand spring water Here is specially selected quality bottled water across the globe Table 7: Price of some international brand spring water SL. Company/brand Pack size Price

No 1 2

Trinity

24 x 500ml bottles 12x1litre bottles 24x500ml

$31.0 0 $28.5 0 $29.6 5 $32.0 0 $32.5 0 $28.3 0 $29.8 5 $29.9 5

bottles 12x1litre bottles 24x500ml

bottles 12x1litre bottles 24x500ml

Avita artesian springs

bottles 24x500ml bottles

1.9 HARMFUL EFFECTS OF PURIFIED WATER

Drinking unfiltered tap water could be hazardous for health because of things like parasites, chlorine, fluoride and dioxins. Drinking purified water on a regular, daily basis may also be potentially dangerous. Distillation is the process in which water is boiled, evaporated and the vapor condensed. Purified or reverse osmosis water becomes free of dissolved minerals and, because of this, this water has the special property of being able to actively absorb essential minerals from the body and eliminate them. Purified water can be dangerous because of the rapid loss of electrolytes

(sodium,

potassium,

chloride) of

and

trace

minerals heart

like bear

magnesium;

deficiencies

which

can

cause

irregularities and high blood pressure. Cooking foods with purified water pull the minerals out of them and lower their nutrient value. The most toxic commercial beverages that people consume (i.e. cola beverage and other soft drinks) are made from purified water. Studies have consistently shown that heavy consumers of soft drinks (with or without sugar) spill huge amounts of calcium, magnesium and other trace minerals into the urine. The more mineral loss, the greater the risk for osteoporosis, osteoarthritis, hypothyroidism, coronary artery disease, high blood pressure and a long list of degenerative diseases generally associated with premature aging. There is a correlation between the consumption of soft water and the incidence of cardiovascular disease. The longer one drinks purified water, the more likely the development of mineral deficiencies and an acid state.

Purified water is an active absorber and when it comes into contact with air, it absorbs carbon dioxide, making it acidic. The more purified water a person drinks, the higher the body acidity becomes. Those who supplement their purified water intake with minerals are not as deficient but still not as adequately. An ideal water for the human body should be slightly alkaline and this requires the presence of minerals like calcium and magnesium.

Moreover a lot of bottled water comes straight from a tap, most of it not even filtered. Sanitary conditions at the bottling plant are unmonitored, and the bottles arrive at the plant without caps, so they could have been contaminated on the way. Because most bottled water is not chlorinated, any bacteria can breed in the closed bottle.

2.1 PRESENTATION OF SURVEY DATA

2.1.1 Data collected from retailer's survey Table 8: Availability of different brands Brand Fresh Mum Pran Libra Ampang Jiban Aqua Safa Trisna Duncan Mountain Zam zam Frequenc y 31 36 23 28 27 12 19 21 11 26 17 14 Percenta ge 62 72 46 56 54 24 38 42 22 52 17 28

Availability of different brands

100 80 60 40 20 0 Percentege 72 46 56 54 52

62

Fre sh

Mum

Pra n

Libra Am ng Dunca pa n

Company

Fig 2: Most available top brands purified water

Table 9: Highest selling brands Ranking Rank-1 Rank-2 Rank-3 Rank-4 Brand Mum Fresh Pran Libra

Table 10: Highest selling bottle size (ml of water) Serial number 1 2 3 4 5 6 500/600m l 750ml 1000ml 1200ml 1500ml 2000ml Pack size Frequenc y (f) 129 25 151 52 61 81 F=500 Percent age (%) 26 5 30 10 12 17

2000ml 17%

500/600 ml 26%

1500ml 12% 750ml 5% 1200ml 10% 1000ml 30%

Fig 3: Selling percentage of different bottle size

Table 11:Average sales trend of different Shopping stores Unit (bottles) 10-20 20-30 30-40 40-50 Above 50 Frequency 26 15 7 2 0 Percenta ge 52 30 14 4 0

60

52

Percentage

40 30

20

14 4

0
bo ttl es

0
bo ttle s bo ttl es bo ttl es bo ttl es 40 -5 0

20 -3 0

30 -4 0

10 -2 0

ab ov e

50

Fig 4: Average sales trend of different stores

Table 12: Features that preferences consumer to purchase bottle water Features Price Pack-Design Brand-image Others Frequency 14 35 34 10 Percentage (%) 28% 70% 68% 20%

100

Consumers Preference Factor for Purchasing bottle water

Percentage

80 60 40 20 0 Price

70 28

68 20

PackDesign

Brandimage

Others

Factors

Fig 5: Consumers Preference Factor for purchasing bottle water

Table 13: Features that preferences consumer to purchase bottle water Factors to Justify Response Frequency Percentag e Variation of Sale with Season YES 40 80% NO 10 20% Regular customer for purified bottled water YES NO 7 43 14% 86%

Table 14: Frequency of complaints from customer about purified bottle water Measure of Interval Everyday Often Seldom Never Total Frequency 3 12 30 5 50 Percentage (%) 6% 24% 60% 10% 100

Table 15: Breakdown of frequently received complaints from customer about purified bottle water Measure of Interval Leakage Contamination Turbidity Bad Test Others Frequency 16 2 4 20 2 Percentage (%) 32% 4% 8% 40% 4%

Frequently Received Complaints from Customers

100 80 60 40 20 0
ka ge n st ti o rb id i Te Le a in a Ba d O th er s ty

Percentage

32 4 8

40 4

on ta

Fig 6: Frequently received complaints from customers about bottle water Table 13: Retail price of different brands Seri al No
600ml 1200ml 2000ml 500ml 1000ml 1500ml 2000ml 750ml 1000ml 2000ml 600ml 1200ml 600ml 1000ml 500ml 1000ml 1500ml 10 15 18 8 10 15 20 10 12 20 10 15 8 13 8 12 15

Brand name

Tu

Complaints

Pack size

MRP(TK )

2000ml 500ml 1000ml 1500ml 500ml 1200ml 2000ml 500ml 1000ml 1500ml

18 8 14 18 10 20 25 8 15 18

2.1.2 Data collected from customer's survey

Table 14: Frequency of drinking bottled water Once Once Once Once in in in in every week a fortnight a month more than 4% 14% 72% 10%

one month
Above monthly 10%

weekly 4%

Fortnightly 14%

Monthly 72%

Fig 6: Frequency of drinking bottled water Table 15: Purchasing frequency in different situation Situations Total

On journey In occasion (party, birthday etc) Stay in home Stay outside of home (hotels, restaurants, hospitals etc)

points 182 104 58 156

200 150
Points

182 156 104 58

100 50 0
Journey Occassion

In home

Outside home

Fig 7: Purchasing frequency of bottled water in different situation

Table 16:Reasons behind purchasing Bottled water Reasons Taste Purity Fashion
Unavailability of other

Points 42 136 86 36

Reasons behind purchasing bottled water 150 Points 100 50 0

s Ta te r Pu i ty Fa i sh on i la va li bi o ty e th fo

136 86 42 36
r

a Un

Fig 8: Reasons behind purchasing bottled water

Table 17:Decisive factor for purchasing bottled water Decisive factors Price Brand Percentage 68% 32%

Brand 32%

Price 68%

Fig- 9: Decisive factors for purchasing bottled water

Table 18: Satisfaction levels of consumers Highly satisfied Satisfied Moderately satisfied

4% 26% 46%

Poorly satisfied
Poorly satisfied 24% Highly satisfied 4%

24%

Satisfied 26%

Moderately satisfied 46%

Fig 10: Satisfaction level of customers Table 19:Consumer's preference between purified home Water and marketed water Water purified in home Marketed purified bottled water

64% 36%

Marketed water 36%

Home water 64%

Fig 11: Consumers preferences between purified Home water and marketed water

Table 12: Brand reliability of consumers Brand Mum Duncan Fresh Others

Percentage 32% 21% 8% 39%

Mum 32%

Others 39%

Fresh 8%

Duncan 21%

Fig 12: Brand reliability of consumers

Table 12: Customers complaints against available brand of mineral water Complaints Frequency Percentage (%) Leakage 10 20% Contamination 2 4% Turbidity 6 12% Bad Test 28 56% Others 5 10%

Customers complaints against available brand of mineral water

100 Percentage 80 60 40 20 0
io n ity e st ag at Te id ak in rb th O
Very Positive 12%

56 20 4

12

10

Fig 13 : Customers complaints against available brand of mineral water Table 13 : Customers attitude toward glass bottle water concept Attitude Frequency Percentage (%) Very Positive 6 12% Positive 14 28% Indifferent 20 40% Negative 7 14% Very Negative 3 6%

on

Negative 14%

ta

Very Negative 6%

Ba d

Tu

Le

er

Positive 28%

Indifferent 40%

Fig 14 : Customers attitude toward glass bottle water concept

Table 14 : Customers willingness to pay per liter glass bottle water Amount ready to Frequency Percentage (%) Pay Tk 12-15 Tk 15-18 Tk 18-22 Tk 22-25 8 24 6 2 20% 60% 15% 5%

Tk 18-22 15%

Tk 22-25 5%

Tk 12-15 20%

Tk 15-18 60%

Fig 15 : Customers willingness to pay per liter of glass bottle water Table 15 : Customers attitude toward Glass water concept (Sealed one time use plastic glass containing 200 ml pure mineral water) Attitude Frequency Percentage (%) Very Positive 10 20%

Positive Indifferent Negative Very Negative

22 10 8 0

44% 20% 16% 0%

Negative 16%

Very Negative 0%

Very Positive 20%

Indifferent 20%

Positive 44%

Fig 16 : Customers attitude toward Glass water concept (Sealed one time use plastic glass containing 200 ml pure mineral water) Table 14 : Customers willingness to pay per Sealed one time use plastic glass containing 200 ml pure mineral water Amount ready to Frequency Percentage (%) Pay Tk 2-3 Tk 4-6 Tk 7-10 15 27 0 36% 64% 0%

Tk 7-10 0% Tk 2-3 36%

Tk 4-6 64%

Fig 17 : Customers willingness to pay per Sealed one time use plastic glass containing 200 ml pure mineral water

2.2 FINDINGS FROM RETAILERS SURVEY

In Bangladesh more than thirty different companies are involved in purified water business. They are marketing purified water n different names such as mineral water, Purified mineral water, natural water, natural mineral water, purified natural water etc. Form the customer survey the revealed present trends are described below.

Current state of sales by the retailers Purified bottled water is now available in almost all the retail stores. The types of products, volume and selling prices vary considerably according to the type of stores. Most of the large volume sales stores, convenience stores, department stores, small and medium sized retailers are the main vendors of mineral water. Besides these, in different restaurants, hotel, hospitals and fast food shops there is also a large volume sale. Moreover according to the distributors, a large fraction of water is sold in different crowd places e.g. railway, lunch, and bus station by the hawkers. Most of the retailers keep the bottles sizes, which are highly preferred by the consumers. The different available brands are 500ml, 600ml, 750ml, 1000ml, 1200ml, 1500ml, and 2000ml. It has been found that 1000ml size is the most popular to the consumer as it can meet the demand for one or more and almost 30% of the consumer choice this size. The 500 to 600 ml is for single or personal use and enjoying almost 26% share. The 1500 to 2000ml bottle is the family size and also has a good sales trend. Most of the companies are marketing their water in two or more convenient size. Top selling area The sales of purified bottled water are not homogeneous throughout the whole country. Actually bottled water can be regarded as an urban oriented product. Although the water

market is expanding day by day, the sales of bottled water is restricted upto suburban area and in rural area it is not available in the retail shops. The main consumers for purified water are those who live in urban zones, such as metropolitan area and in different city town. Even in the urban area the sales of the water is not also homogeneous. For drinking water almost all the people depends on tap water. The sales trend of water near the residential area comparatively higher than non-residential area. On the other hand the retailers in the crowded place e.g. bus station, railway station, lunch station, near the hospital sell more than the retailers of other areas. In these places the average daily sales of the retailers is above 20 bottles (whatever the size) whereas in other areas it is below twenty. Brand leader and brand image Among all the purified water brands Mum, Fresh, Pran, duncan, Ampang are comparatively doing better. But in respect of availability Mum and Fresh are in the prime position. In the survey it was found almost 72 and 62 percent of retailers keep these two brands respectively. This is due to the strong distribution channel and market promotional strategy of these two companies. Brand image has not yet been established in our country, as regular customers are not available. People generally buy mineral water when they don't have any alternative way to get it. In survey it was found that Mum is the highest selling brand in most

of the stores, occupying the brand leader position. After that Fresh is enjoying the second position whereas Libra and Ampang are competing for the third position. Consumer trend The people purchase purified water when they are compelled. In regular basis, customer of market water is not available. Most of the people depend on municipal water for the daily use. Only in certain restaurants and office there are some domestic and foreign regular customers. Price is the main factor in case of purchasing purified water. In the survey it was found that the people buy the brand, which is cheaper. Although there are some customers who look for established brand but their main focus also remain on the price compliance. According to the retailers seventy five percent of the customers who buys the purified water is solvent. The middle and the lower class of people don not agree to buy the water unless they are bound to buy it. Seasonal variation in sales is not observed in the sales of purified bottled water. Some of the retailers express that the sales increases slightly in summer seasons but its impact on sales is insignificant. Promotional Incentives Basically there is no major promotional incentive trend is

prevailing in this industry. Most of the retailers acknowledged an insignificant amount of incentive received from the company. Some mineral water companies offer one bottle mineral water free with a crate or Tk. 10 off upon purchasing of Tk. 1000 product from them and so on. Though some of the leading companies not even offer those little ones too.

2.3 FINDINGS FORM CUSTOMER'S SURVEY

Purchasing trend Consumers survey revealed that most of the people who use purified water, buy it for drinking purpose. The tradition of using bottled water for preparing food (e.g. tea, coffee others) or for physical use has not developed in our country. For frequency of purchase most common answer was once in a month. In regular basis they do not use bottled water. Most of the time people buy it when they are outside of the home especially on journey, in hotel, restaurants. Most of the people agreed upon that the use of bottled water is increasing in different

occasions(party, seminar etc). Reason behind purchasing water The safety and purity is the main reasons behind using the bottled water. But it was also found that fashion is also another important reason behind it. But taste is comparatively an insignificant consideration for purchasing water and according to the customer's opinion taste of normal tap water is better than that of bottled water. Decisive factors for purchasing water When in the survey people were asked which one is the decisive factor in case of purchasing bottled water whether price or brand image, 68% of the people gave their opinion for price and the rest 32% for brand. Although most of them look for high grade purified and safe water, but it seems that the socio economic conditions of the country is responsible for this opinion. But according to the purchasing trend it seems that they like to buy water of reliable brand in a reasonable price. Most of the buyer wants to stay within certain sorts of brands.

Satisfaction about the quality It was found that those who use purified water only 4% people are highly satisfied with the quality of the water, 26% people are satisfied, 46% are moderately satisfied and the rest 24% are not satisfied or poorly satisfied. Most of them claim that the quality of the water is not maintained properly.

Even when they were asked to choice one between 'water purified in home' and 'purified marketed water' 64% wanted to take water purified in home. This also reveals that people has still doubt about the quality of marketed water. Brand image Although brand image has not been established in our country, it seems that brand image is developing day by day. When people were asked to choice any brand from the market, most of them mentioned any established brand. Among them Mum, Fresh and Duncan are notable. It was observed that although the Mum is brand leader in sales figure, Duncan has the highest acceptability to the consumers in terms of purity and safety. Complaints In contrast to the satisfaction level, existing consumers of purified mineral water also have some complaints against the existing products in the market. Almost 56% complaints can be accumulated under a broad head Bad Test from customers. Most of the complaint givers in this category feel existing bottle mineral water, taste less or bad testing. Water bottle leakage is also a notable complaint from customers attained by 20% of surveyed population. Most of them characterized the leakage problem hidden in lose/bad cap sealing of the bottle. others. A few complaints also accumulated for Contamination, turbidity, and

Glass Bottled Water Concept 60% of surveyed people show an indifferent attitude toward my glass bottled water concept. Whereas 28% population have a positive degree of intension to accept it. More 12% are ready to do advocacy for it. Pay intension matrix shows 60% people are willing to pay Tk. 15-18 for a liter of glass bottled water followed by 15% to pay Tk. 18-22. Glass Water Concept: In contrast to 28% response on glass bottled water concept, 44% of surveyed population shows positive attitude toward Glass Water Concept. This motivating amount of positive response is also followed by subsequently 20% of both Very Positive & Indifferent response. 64% of total Very Positive, Positive, & Indifferent response givers are willing to pay Tk . 4-6 for a 200ml sealed glass packed water. Rests 36% are not ready to give more than Tk. 2-3 for that same glass of water.

2.4 TREND OF TACTICAL MIXES OF PURIFIED BOTTLED WATER MARKET

2.4.1 Bottled water All the purified water companies are marketing their mineral water in the market in different sizes. The constituents of the water vary from company to company. The water composition of some of the common companies is mentioned belowTable 20: Composition of Ampang Natural mineral water Sl.no. 1 2 3 4 5 6 7 7.5 Table 21:Composition of purified Water of Libra Sl.no. 1 2 3 4 5 6 Constituents Bicarbonate Chloride Sulphate Iron Fluoride Manganese mg/L 150 10 5.0 0.3 0.2 0.5 Constituents Calcium Bicarbonate Sodium Chloride Sulphate Magnesium Iron pH mg/L 35 60 20 10 25 30 0.01

7 TDS <300

Nitrate

8.0

pH 6.5-8

Table 22:Composition of Mountain Natural mineral water Sl.no. 1 2 3 4 5 6 7 Constituents Calcium Bicarbonate Sodium Chloride Sulphate Magnesium Iron mg/L 35 60 20 10 25 30 0.01

Table 23:Composition of Samurai Mineral water Sl.no. 1 2 3 4 5 6 pH 6.8 Most of the companies market the water in plastic bottles. But now some of the companies are going for PET bottle packaging with new and exclusive design. Some of the companies bottling the water in glass bottle, so that the bottle can be reused and Constituents Chloride Potassium Calcium salt Magnesium Nitrate Iron mg/L 5.0 0.1 0.2 0.1 0.1 0.03

price can be decreased. But this brand is not popular.

2.4.2 Pricing of purified water The price of the bottled water varies from company to company. From the survey it was observed that the retail price of the water is not written on the bottle. The retailers try to sell the water in high price, so that they can have a good margin. It has been found that most of the retailers have a margin 15-20% of the retail price. The average range of price of different size of bottles is followsAverage MRP of different brands Sl.no . 1 2 3 4 Size 500/600ml 1000/1200ml 1500ml 2000ml MRP (Tk.) 8-10 12-15 15-18 18-25

From the marketing strategy of different company it was observed that reputed and established company (Pran, Fresh, Duncan etc) do not sale their product on credit. On the other hand different small company like Yes, Everest, Mountain, Himalayas etc go for the credit sales. 2.4.3 Placing of purified water Almost all the company promotes bottled water for drinking purpose. It is basically become a consumer product for the rich or

solvent. This is why it is marketed mainly in the city areas. Besides this in different suburban area, hospital, restaurants, stations it is also promoted. Big companies like Fresh, Pran use their own distribution channel for the distribution of the purified water and their distribution channel is very strong. Small companies follow the two level distribution channel through the wholesalers and retailers to the customers.

2.4.4 Promotion of purified water In the competitive purified water market, different companies are taking different strategy for increasing the sales volume as well as the market share. Almost all the companies are involved in sales promotion. They also give different incentives, bonus and gifts on the basis of sales volume of different wholesalers and retailers. The established companies in daily papers and periodicals also do advertising. Recently Pran and some other companies has started to give advertisement in televisions. Personal selling strategy is not common. Most of the company sells the products through retailers by push selling strategy, keeping more margins for them.

2.5 SUMMARY OF MARKET SURVEY

1. The purified water market size is almost forty crore Taka in Bangladesh. 2. The market growth rate is almost 15%. 3. Fresh is the brand leader in this market in terms of sales whereas in respect of purity and brand image Duncan is in first position. 4. Purified water is used in our country mainly for drinking purpose. 5. Regular customer of purified water is not available in our country. 6. Most of the people are not satisfied with the quality of the marketed water and they do not buy water unless they are bound. 7. One liter bottle is the most popular size to the customers. 8. Purified water is not sold in fixed price. 9. Price is the most decisive factor in casing of purchasing purified water. 10. 11. The rich are the main customers of bottled water. The variation of sales is insignificant with seasons.

3.1 NEWLY BRANDED PURIFIED WATER

In present situation the purified water market in Bangladesh is very competitive and in this situation market penetration with a new brand is very tough. This is because all the competitors in the market are very aggressive in their promotion and sincere to increase the market share. Only special product features and exclusive marketing strategy can help to establish a new brand in the present market. In this situation a new brand Dew purified mineral water can be marketed, following the product features and marketing strategy as follows. 3.1.1 Portfolio of tactical mixes of Dew purified mineral water 3.1.1.1 Dew purified mineral water: Dew mineral water will be launched in the market in three different forms as follows(1) Bottle water- This is simple bottle water in which the purified water will be kept in a PET bottle. It will be available as 600ml, 1000ml, and 2000ml bottle. (2)Glass bottle water- Here the purified water also will be filled in a bottle. But the bottle will be specially designed and it will have a small plastic glass which will cover the sealed cap as a secondary protection against contamination as well as also can be used as glass for drinking purpose. From the bottle, water can be poured in the glass so that it can be drunk conveniently. Each

Dew glass bottle water will contain 2000ml of water. (3) Glass water- Here purified mineral water will be marketed in a waxy paper glass. Each of the glass will contain 350 ml of water. Dew bottle water and Dew glass bottle water will be marketed in PET bottle instead of conventional plastic bottle. PET bottle is more acceptable than plastic bottle in case of maintaining the quality of the water, this is because if water is kept in plastic bottle for a long time the pH of water may decreased due to the reaction with water. Besides this the transparency of PET bottle is higher than that of plastic bottle. Moreover due to the higher rigidity of PET bottle it is not distorted easily like plastic bottle. So it is more stable during distribution and storage. Dew bottle water and glass bottle water will be sold to the wholesalers and retailers as carton. For 600ml and 1000ml each carton will contain 12 bottles. For the 2000ml bottle each carton will contain 6 bottles. So the price of each carton will be reasonable and both the small and large retailers can keep the water for sale. The Dew glass water will be sold in small glass of 350ml. This is for one time use. For wholesaler and retailers it will be also promoted as a carton where each carton will contain 24 glasses. The quality of the water will be maintained strictly. For Dew purified water, water will be collected from underground source.

After filtration with micro-filter, high-tech ozonation process will be applied to disinfect the water, which is highly hygienic, and comply the FDA requirements. Chlorine or Fluorine treatment or any other chemical procedure will not be applied which is harmful for the body. After filling the bottle the cap sealing procedure will be strictly monitored so that leakage of water or contamination does not occur. On each and every bottle/glass the manufacturing date and expiry date will be mentioned clearly. Within this time the warranties about quality of water will be assured. If any objection arises from the wholesalers, retailers, customers or if the water is not sold within the shelf life, then product exchange will be allowed.

3.1.1.2 Pricing of Dew purified mineral water The price of Dew bottle water has kept in accordance with the market price i.e. the on going price. If premium price is followed it will be difficult to gain the market share. This is because from the market survey it was found that price is the most decisive factor for buying the bottled water.

Table 24: MRP of Dew purified mineral water Type size 600ml Dew bottle water 1000ml MRP (TK.) 10 14

Dew

glass bottle

2000ml 2000ml 350ml

18 20 5

water Dew glass water

The price of Dew glass bottle water is taka 20 per bottle, which is slightly higher (2 taka) than 2000ml Dew bottle water. This is actually due to the increased packaging cost (glass) and different design of bottle. This price taka 20 per bottle also will be acceptable to the customers because many companies are selling their 2000ml conventional bottle (simple design) at taka 20. Price of glass water is kept taka 5 each. If the price is kept taka 7 or 8 each, then people will shift to other soft drinks like Coke, Virgin, Sprite, Fanta, Orenta, Mirinda, Pepsi etc. Price per glass 5 taka seems reasonable because people will not hesitate to spend this amount to get one glass of pure, aesthetic and fashionable water. The retail price of the Dew purified mineral water must be followed by the retailers. The MRP will be written on the label of bottle so that the consumers do not confuse about the price. As the company wants to establish brand image, so selling the product in fixed price is very important. The gross profit of the retailers will be 20% of the retail price. The gross profit may slightly vary by a buyer's scale, credit rating, annual purchasing or with other promotional policies but the market retail price always be maintained.

3.1.1.3 Placing of Dew purified mineral water Bottled water Glass bottled Glass water

water Customers
People who use People who use - People who use purified water to buy purified purified water buy purified water purified water buy purified water more

- People who wish to - People who wish to - People who wish - People who looks for water convenient People who are bottled water fashionable

- Urban area - Suburban area

Promotional Area - Urban area - Suburban area

Urban

area big

(especially cities)

All

retailers, All

Target place retailers, Fast food shops, hotels, restaurants, Stations, hotels, Medical Stations, Medical pharmacy, Doctors Hospitals, Office,

restaurants, hotels, restaurants, Hospitals, Stations, Hospitals, Office, Medical Office pharmacy, Doctors

pharmacy, Doctors

For distribution company will follow one level channel.

Fig 13: One level distribution channel

For the convenience of the distribution the marketed area will be divide in certain regions. In each region there will be one depot for the control of regional distribution.

3.1.1.4 Promotional strategy As the market is highly competitive and challenging, so proper promotional strategy is very much important to establish Dew purified mineral water as a brand. On the basis of situational analysis the company will have to take positive strategy to promote Dew bottled water. In the market survey it has been observed that different companies are making various sales promotion programme for the distributors, wholesalers and retailers. For the market penetration at the preliminary stage Dew purified mineral water company will also arrange sales promotion for the retailers or wholesalers. On the basis of situation, company can go for price off strategy (i,e. 5% straight discount off the list price on each carton), free goods strategy (e.g. for one carton, one bottle is

free) or can offer gifts to the retailers, wholesalers of customers for purchasing certain amount. The company will also go for advertisement in television and daily papers describing the quality and benefits of the products. Primarily the view of the advertisement will be informative and persuasive. Pestering in crowded places and sticker for retail stores will be prepared for the promotional support. In the preliminary stage direct marketing will help the Dew mineral water for establishment of brand image. Direct marketing strategy for different hotel, restaurant, parties, seminar, conference will describe the customers about the benefit of the Dew water and can easily convince them to purchase the water.

3.1.2 Benefits of different types of Dew purified mineral water: Dew bottle water In the present situation this type of bottled water is only available in the market and highly acceptable to the consumers. All the consumers are habituated to use such bottled water. Moreover this is comparatively cheap and will be available in three different size of 600ml, 1000ml and 2000ml. So consumers can choice the size according to their needs. The main objective of this type of

bottled water is to facilitate the market penetration and snatching market share from competitors brand. Dew glass bottle water In the present market, 2000 ml bottle is mainly used as a family size and this size is enjoying a big share in purified water market. The objective of launching glass bottle water is to convert the customers of family size bottle to this brand by explaining the benefits of this product as follows1 Each bottle contains 2000 ml of water that will meet the need of a family. 2 Due to the presence the drinking will be more comfortable. 3 From conventional bottle spilling of water may wet water when people try to drink water, during drinking dress. But in Dew glass bottle water as the people will drink water from glass, there will have no chance of such problem. 4 For children it is inconvenient to drink water from bottle. But if they get glass it becomes easier for them to drink and they will feel comfort. 5 When more than one-person drink water from same bottle, there is the chance of spreading contagious disease from one to another. But in case of drinking from Dew can drink water in glass and other in bottle. 6 New product features always attract people. This new feature will bring more customers. bottle water, one can wash the glass after using by others or one

Dew glass water: This will be promoted to special segment of customers. The benefits of the products that will be highlighted are1 For drinking water this is most convenience 2 No additional glass is required. 3 As one glass is for one person, so it is very suitable in different occasion e.g. party, picnic, seminars, conference etc. 4 It is elegant to look it 5 As it is for one time use, so there is no chance of drinking contaminated water. But in case of normal bottled water sometimes people keep it after use a portion of the water and later they use the next portion. In between this gap there is the chance of contamination and the bottle remains unsealed and people may drink contaminated water.

3.2

SITUATION

ANALYSIS

AND

MARKETING

OBJECTIVES
3.2.1 Executive summary Product category Growth strategy PLC stage Sales objectives purified water Promotional tools promotion Contribution to sales : Bottle waterGlass bottle waterGlass water3.2.2 Situation analysis The bottled water business in our country is not more than ten years. Only within this short time purified water selling has become a profitable business in our country. The present market size is almost forty crore Taka and the companies are selling about 275 kilolitres of water everyday. The market is growing day by day as the population of the country is increasing and the lifestyle of the people is developing. The present market growth rate is almost 15%. In the present situation the market is very competitive. More than thirty different companies are marketing their product. Moreover 15% 5% 80% : Advertisement, gifts, sales : : : : Purified mineral water Market development Introduction : : To establish the brand To gain 5% market share of To sale Taka two crore

Promotional objectives Market share objectives

some of the world-renowned purified water companies like Evian, Aqua also introducing their quality water in Bangladesh. All the companies are very aggressive for the promotion of their product. To establish a brand in the present market is very tough unless there are any special product advantages. Besides expansion of the market the consumers are becoming more conscious about the quality and price of purified water in the market. Although perfect branding has not been developed but the people are inclining to buy water of any renowned company.

3.2.3 Available competitors 1 Direct s 2 Indirect s Purified Mum, Pran, Yes, Fresh, Libra, Trishna, Ampang, Mountain, Duncan,

competitor water

Mounatain,

company Samurai, Soft

Himalyes, Everest, Mum etc. Coca cola, Sprite, Fanta, Mirinda, Pepsi, Virgin, Mangola, Orenta,

competitor drink

company Bubble-Up, Seven Up, Slice etc.

3.2.4 SWOT analysis Strengths 1 Quality product 2 Specific objectives 3 Well-planned promotional strategy

4 New product features 5 Strong distribution channel 6 Targeted promotion Weakness 1 Late entry in the market. Opportunities 2 Capitalization of the growth of purified water market 3 Price fixing opportunity 4 Sharper brand differentiation by offering different and convenience shape of the packaging materials. 5 Company image regarding quality of many competitors are not satisfactory among the customers.

Threat 1 Competitors are very aggressive in their promotion 2 Better company image of many competitors 3 Strong distribution channel of the competitors 4 Flexible business policy of the competitors allows frequent bonus, discount and personal services. 3.2.5 Product positioning and segmentation Bottled water Glass bottled Glass water

water Customers
- People who use People who use - People who use

purified water to buy

purified water

purified water to buy purified

- People who wish - People who wish to - People who wish purified buy purified water more water - People who looks for water convenient People who are bottled water fashionable

- Urban area - Suburban area

Promotional Area - Urban area - Suburban area

Urban

area big

(especially cities)

All hotels, Stations,

Target place retailers, All retailers, Fast food shops, restaurants, Office hotels, restaurants, Stations, hotels, Hospitals, Medical Stations, Medical pharmacy, Doctors Office, Hospitals, Hospitals,

restaurants,

Office,Medical pharmacy, Doctors

pharmacy, Doctors

3.2.6 Promotional campaign Quality purified mineral water Dew purified water use is produced using that state-of -the -art technology. We micro-filter successfully removes

impurities and toxic metals like Mercury (Hg), Arsenic (As), Lead (Pb), Cadmium (Cd) etc. Moreover disinfections by ozonation

ensure the water is totally free from bacteria, virus or other microorganisms. Completely hygienic and safe for drinking The mineral content of Dew purified water is 150mg/L, which complies with the FDA requirements. Moreover the child lock cap sealing strictly protects it from any type of contamination and leakage, which ensures the safety of Dew purified mineral water. Convenience to drink Dew glass bottle water and Dew glass water offers specially designed glass for drinking purpose, which make the drinking process more comfortable. Especially for the children Dew bottled water is very convenient and suitable.

CONCLUSION
Since water is a basic necessity of life, all citizens should be able to expect a safe and available supply for their needs. The quality and purity of water is vitally important for the health. People's consciousness about water quality has been raised recently due to several widely reported incidents of public drinking waterendangering health and even causing death. The sale of bottled water is increasing day by day due to both the hygienic and nonhygienic (fashion, taste, odor etc) reasons and it is becoming a booming business throughout the world. According to the International Bottled Water Association (IBWA) the sales of bottled water have increased by five-fold over the last decade, and consumption per capita has increased 15 fold. In Bangladesh bottled water selling has become also a promising business. At present the purified bottled water market is almost forty crore Taka having 15% market growth each year. In the present market 'Fresh' is enjoying the highest market share followed by Pran natural mineral water. In respect of safety and purity Duncan has the highest acceptability to the customers. Purified bottled water is purchased in our country mainly for drinking purpose and most of the consumers are from the urban area. Although the market is growing rapidly still most of the consumers doesn't have confidence on the quality of the marketed water.

The new brand Dew purified mineral water will be launched in the market in three different types as Dew bottle water (600ml, 1000ml and 2000ml) Dew glass bottled water (2000ml) Dew glass water (350ml) Special product features of Dew water will make the market

penetration process easier as it will be able to satisfy the customers easily due to the presence of glass and people can drink water conveniently. Moreover the on going price of different types of Dew water is reasonable and will be highly acceptable by the customers. distribution channel Moreover the targeted promotion, strong and quality water can ensure the

establishment of brand image of Dew purified mineral water. At present the purified water market is very competitive. All the available companies are making aggressive proportional strategies to increase their market share. In this situation to establish a new brand in the market the parent company must have strong financial background for huge investment, ensure quality water, provide new product features, follow ongoing pricing system, have strong distribution channel, go for well planned promotional strategy.

Appendix A

The survey is being conducted by a student of BBA, Khulna University. The information given will exclusively be used for academic purpose. Your wholehearted cooperation will be appreciated.

______________________________________________________________________________ Q 1. What are the available brands of purified water in your store? Pran Fresh Mum Libra Ampang Jiban Aqua Safa Orenta Duncan Mountain Zam-Zam Trishna

Q 2. Which are the highest selling brands of purified water in your store? Rank1 Rank2 Rank3 Rank4

Q 3. Which one is the highest selling pack-size in your store? Pack size 500ml 750ml 1000ml 1200ml Number

1500ml 2000ml Q 4. How many bottles of water do sell everyday? (Whatever the pack size) # 10-20 #Above 50 Q 5. What factors do you think get preference for purchasing purified water by the consumer? # Price # Others # Pack -design # Brand image #20-30 # 30-40 # 40-50

Q 6. Does the sale of purified water vary with season? # Yes # No

Q 7. Is there any regular customer of purified water (who takes purifies water everyday)? # Yes # No

Q 8. How frequent do you receive complain about purified water from your customer? # Everyday # Often # Seldom # Never

Q 9. What type of complains do you face from your customer about purified water? # Leakage # Contamination # Turbidity # Bad Test

#Others

Q 10. Which of the following company gives you the credit sale? Pran Fresh Trishna Libra Ampan g Jiban Aqua Safa Orenta Duncan Mountai n ZamZam

Q 12.

Which of the following company gives you the bonus/ discount

/incentives? Brand Mum Pran Fresh Trishna Libra Ampang Jiban Aqua Safa Orenta Duncan Mountai n Others Description incentives of Bonus/ discount /

Name of store___________________________ Address________________________________

Appendix B
The survey is being conducted by a student of BBA, Khulna University. The information given will exclusively be used for academic purpose. Your wholehearted cooperation will be appreciated.

______________________________________________________________________________

Q 1. Do you buy purified bottled water from market?

# Yes # No

Q 2. How often do you buy bottled water? # # # # Every week Once in a fortnight Once in a month Once in more than one months

Q 3. When you most often buy bottled water? (Please give point from 4 to 1 on the basis of Purchasing frequency in the following situation)
Purchasi ng Purchasi ng

frequen

quantit

cy

On journey In occasion (party, birthday etc) Stay in home Stay outside of home (hotels, restaurants, hospitals etc) Q 4. Why do you drink bottled water? (Please give point from 4 to 1 on the basis of importance) Taste Purity Fashion Unavailability other of

Q 5. Which one is the most decisive factor to you in case of purchasing bottled water from market? # Price # Brand

Q 6. How much are you satisfied with the quality of bottled water? # Highly satisfied # Satisfied # Moderately satisfied # Poorly satisfied Q 7. For drinking purpose which one will you choose? # Water purified in home # Marketed purified bottled water Q 8. If you wish to buy bottled water from market which brand will you choice?

Brand name --------------------------------Q 9. What type of complaint/s do you have currently in using available brand of mineral water? # Leakage # Contamination # Turbidity # Bad test Specify (If others)____________________________________ Q 11. How do you see about Glass bottle water concept? # Very Positively # Positively# Indifferent Very Negatively - If your answer is Very Positively /Positively/Indifferent, then how much of amount you are ready to pay for it (Per Liter bottle): # Tk. 12-15 # Tk. 15-18 # Tk. 18-22 # Tk. 22-25 Q 12. How do you see about Glass water concept (Sealed one time use plastic glass containing 200 ml pure mineral water)? # Very Positively # Positively# Indifferent Very Negatively - If your answer is Very Positively /Positively/Indifferent, then how much of amount you are ready to pay for it (Per Glass): # Tk. 2-3 # Tk. 4-6 # Tk. 7-10 # Negatively # # Negatively #

1. MUM BRAND LEADER, FRESH, PRAN, DUNCAN, AMPANG 2.

Name_____________________

Appendix C
TABLES
Table 1: Table 2: Table 3: Table 4: Table 5: Table 6: Table 7: Table 8: Table 9: Table 10: Table 11: Table 12: Table 13: Table 14: Table 15: Table 16: Table 17: Table 18: Table 19: Table 20: Table 21: Table 22: Table 23: Bottled water industry leaders in world market The leading brands for 1999 in world market Ice mountain natural spring water Panna natural spring water Evian natural spring water Black mountain spring water Price of some international brand spring water Availability of different brands Highest selling brands Highest selling bottle size (ml of water) Average sales trend of different shopping store Consumer category of purified water Retail price of different available brands Frequency of drinking bottled water Purchasing frequency in different situation Reasons behind purchasing bottled water Decisive factor for purchasing bottled water Satisfaction levels of consumers Consumers preference between purified home Water and marketed water Composition of Ampang natural mineral water Composition of Purified water of Libra Composition of Mountain natural mineral water Composition of Samurai mineral water

Table 24:

MRP of Vee purified mineral water

Appendix D
FIGURES
Fig-1: Steps of water purification techniques Fig-2: Most available top five brands of purified water Fig-3: Selling percentage of different bottle size Fig-4: Average sales trend of different stores Fig-5: Consumers class of purified water Fig-6: Frequency of drinking bottled water Fig-7: Purchasing frequency of bottled water in different situation Fig-8: Reasons behind purchasing bottled water Fig-9: Decisive factors for purchasing bottled water Fig-10: Satisfaction level of consumers Fig-11: Consumer preference between purified home water and marketed water Fig-12: Brand reliability of consumers Fig-13: One level distribution channel.