Advertising & sales

Sales strategy
Amrit will be served to the consumers using hybrid sales at the beginning. It will not only
reduce the cost but also it will be delivered in short span of time to the needed consumer.
Direct sales will build one to one relationship between consumers and Amrit

The current market scenario of packaged water bottle is in a well-organized sector,

companies like Bislery, Kinely, Bailey, Rail neer(Railways), Brislay(Govt. of India) has a
well-established market. Amrit is also a complete packaged water which is organized and
also provides a complete hygienic water with a higher degree of minerals and does not get
easily contaminated.

Sales and distribution channels table

Channel type: Hybrid channels is used to fetch different types of customer. Shops front will
be occupied so that consumers can easily purchase our product.
Products/services: Amrit is a packaged drinking water with multiple stage treatment
Percentage of sales: 85.93%

The Finances

Price
To make place in the existing market by competitive pricing of the bottled water considering
the fact that there is low demand as the product is new and no customer base we have used
variable cost per bottle which includes packaging, labelling of the bottle in which we will
serve Amrit. It also includes amount of fuel consumption for the van through which water
bottle will be served to multiple locations.
Fixed Cost includes the cost of Van, Water Purification Machines.
Gross profit margin is also taken into account

Total Production = 8hr X 1000 X 24 (days)

= 192000 bottles (assumption)
Total Variable Cost = 192000 X (2+6+2+0.10p)
= Rs. 19,39,200 approx.
Fixed + Variable Cost = Rs. 80,000 + Rs. 19,39,200
= Rs. 20,19,200 approx.
Fixed cost + Variable Cost
Per Unit Cost = ---------------------------------------
Total Production

Rs. 20,19,200
= -----------------------------
192000

Actual cost of one bottle = Rs. 10.51

Gross profit=66.51%
Final price=Rs. 18
Expected sales
Expected sales per day are 5500 packaged day per day throughout Patna. To achieve this
figure it will take 1 month time as our advertisement will make customer aware of our
product and customer loyalty will be build inside customers.
There will not be or minimal seasonal influence as the product is a packaged mineral water.