1

MARKETING STRATEGY PROJECT OF AQUAFINA

Submitted to: Miss Sadaf Hassan

Submitted by:

Moeen Mansoor

Institute:

Global Institute, Lahore

Final project: Marketing Strategy

Acknowledgement
All praises for almighty Allah. The creator. Whose uniqueness oneness is unchallengeable countless thanks to he the lords of lords who blessed us with the courage and power to complete this report and all respects and regards to Holy Prophet Hazrat Muhmmad (PBUH) for giving us the faith paving us on the right path with the essence of faith in GOD We feel great pleasure in expressing our profound and cordial gratitude to our respected teacher and taught supervisors Sir Jawad Saleem for his admirable cooperation guidance for us and sympathetic attitude which enable us in the formulation of and compilation of report. Our special thanks and favor for our esteemed friends for their ever lasting cooperation and giving us the homely atmosphere. Last but not the least we thank full to our parents and our family members for their cooperation guidance and inspiration throughout the course.

Final project: Marketing Strategy

Executive Summary
The goal of this marketing plan is to outline the strategies, tactics, and programs that will make the sales goals outlined in the AQUAFINA business plan a reality in the year 2008. AQUAFINA is the answer to an increasing demand. Marketing will play a vital role in the success of AQUAFINA. AQUAFINA must build a brand around the services it offers by heavily promoting itself through local television, radio, and print advertising. Marketing efforts are just beginning by the time a potential customer enters AQUAFINA for the first time. A strong emphasis will be put on keeping customers and building brand loyalty through programs focused on staffing, experience, and customer

Final project: Marketing Strategy

TABLE OF CONTENTS

HISTORY OF AQUAFINA......5 HISTORY OF PEPSI7 WORLD WATER MARKET..10 PAKISTANI WATER MARKET ..10 ECONOMIC SURVEY11 MARKET POTENTIAL. 13 INDUSTRIAL SWOT ANALYSIS.14 MARKET ANALYSIS 15 COMSUMER ...16 MARKETING MIX.19 SWOT ANALYSIS OF AQUAFINA..23 MARKET GROWTH OF AQUAFINA.24 BIBLIOGRAPHY25

Final project: Marketing Strategy

HISTORY OF AQUAFINA

Aquafina

Type Manufacturer Country of origin

Water Beverage PepsiCo, Inc. United States

Introduced

1994

Aquafina is a brand of bottled water. It was first distributed in Wichita, Kansas in 1994, and was distributed across the United States, Canada, Turkey Vietnam Pakistan and India. As of 2003, it had become the United States' top-selling bottled water brand in measured retail channels. Aquafina is sold in 12-fluid ounce, 500-milliliter (16.9 fl oz), 20-ounce, 24-ounce, 1liter, and 1.5-liter bottles. Aquafina uses PepsiCo's own purification system, which it calls HydRO-7, that includes charcoal filtration, reverse osmosis and Ozona ion. PepsiCo states in marketing material that this system removes substances that may be in other brands of bottled water. As of July 27, 2007, PepsiCo put a disclaimer stating the water comes from a "public source" on each bottle. Aquafina uses the term "Purified Drinking Water" on its label. In Canada the current 1.5 L bottle of water displays "Dematerialized Treated Water". The bottle also displays that the water is "From the public distribution of Mississauga. ON. Michelle Naught on, a Pepsi-Cola North America spokeswoman said, "If this helps clarify the fact that the water originates from public sources, then it's a reasonable thing to do."
Final project: Marketing Strategy

PepsiCo produces several other products under the Aquafina label:

Aquafina Sparkling carbonated flavored water, available in Berry Blast (Raspberry), and Citrus Twist. Aquafina Flavor Splash, flavored water (without carbonation), and artificially sweetened with Scurrilous, available in Grape, Citrus Blend, Wild Berry, and Raspberry. Aquafina Alive, a low calorie, vitamin-enhanced water beverage, available in Berry Pomegranate, Peach Mango and Orange Lime. Aquafina plus+, a low calorie (120 calories per 591mL bottle), vitamin supplement water beverage available in "Blackberry Grape", "Pomegranate Cherry","Passionfruit Citrus" and "Orange Tangerine".

Aquafina is an official sponsor of Olympus Fashion Week, Sundance Film Festival, Tribeca Film Festival, Carolina Panthers, and the PGA.

Final project: Marketing Strategy

HISTORY OF PEPSI
Pepsi-Cola
Type Cola

Manufacturer

PepsiCo.

Country of origin

United States

Introduced

16 June 1903

History
Origins

Pepsi was first made in New Bern, North Carolina, in the United States in the early 1890s by pharmacist Caleb Bradham. In 1898, "Brad's drink" was changed to "Pepsi-Cola" and later trademarked on June 16, 1903.[1] There are several theories on the origin of the word "Pepsi". The only two discussed within the current PepsiCo website are the following:
1. Caleb Brad ham bought the name "Pep Kola" from a local competitor

and changed it to Pepsi-Cola. 2. Pepsi-Cola" is an anagram for "Episcopal" - a large church across the street from Bradham's drugstore. There is a plaque at the site of the original drugstore documenting this, though PepsiCo has denied this theory.

Final project: Marketing Strategy

The word Pepsi comes from the Greek word "Pepsi" (), which is a medical term, describing the food dissolving process within one's stomach. It is also a medical term that describes a problem with one's stomach to dissolve foods properly. Another theory regarding the name's origins is that Caleb Bradham and his customers simply thought the name sounded good and reflected the fact that the drink had some kind of "pep" in it because it was a carbonated drink. It was made of carbonated water, sugar, vanilla, rare oils, and kola nuts. Whether the original recipe included the enzyme pepsin is disputed.[2][3] In 1903, Bradham moved the bottling of Pepsi-Cola from his drugstore into a rented warehouse. That year, Bradham sold 7,968 gallons of syrup. The next year, Pepsi was sold in six-ounce bottles, and sales increased to 19,848 gallons. In 1924, Pepsi received its first logo redesign since the original design of 1905. In 1926, the logo was changed again. In 1929, automobile race pioneer Barney Old-field endorsed Pepsi-Cola in newspaper ads as "A bully drink...refreshing, invigorating, a fine bracer before a race". In 1929, the Pepsi-Cola Company went bankrupt during the Great Depression- in large part due financial losses incurred by speculating on wildly fluctuating sugar prices as a result of World War I. Assets were sold and Roy C. Mega gel bought the Pepsi trademark. Eight years later, the company went bankrupt again. Pepsi's assets were then purchased by Charles Goth; the President of Loft Inc. Loft was a candy manufacturer with retail stores that contained soda fountains. He sought to replace Coca-Cola at his stores' fountains after Coke refused to give him a discount on syrup. Goth then had Loft's chemists reformulate the Pepsi-Cola syrup formula.

Final project: Marketing Strategy

Aquafina is dealing with the water industry in Pakistan and tend to provide the pure water to the consumer as there is no mineral water bottle company in Pakistan we want to provide the mineral water for the first time in Pakistan as our organizational process is continually improving Reason: When Auafina has been launched by Pepsi in local market their was only few local brands and one multi national brand which is nestle Overall Economic Scenario:

With the population of 180 million (estimated July 2007) Pakistan holds the ninth largest market with 34% urban population Increasing overall population with a significant increase in urban population has resulted in more consumption of consumer goods

Final project: Marketing Strategy

10

WORLD WATER BOTTLED MARKET

Annually consumption

189billion liter

Estimated sales

$ 200 billion

Consumption growth

7 % per year

PAKISTANI BOTTLED WATER

People using bottled water

7 to 8 %

Annually consumption

1.7

billion

liter

water

Estimated sales

RS 20 billion

Consumption growth

1.7 % per year

Final project: Marketing Strategy

11

ECONOMIC SURVEY
Pakistans biggest consumer markets include:

CITES Karachi Lahore Rawalpindi Faisalabad Multan Gujranwala Hyderabad Islamabad peshawar

POPULATION 15 million 9 million 3.0 million 2.6 million 1.6 million 1.3 million 1.3 million 1.3 million 1.0 million

Final project: Marketing Strategy

12

Population and growth:

population Growth rate

180 million 4.09%

Urban population Urban Population growth rate

56 million 2.10%

Size of middle class Middle class growth

82 million 3%

Age structure: Age category 0-14 years 15-64 years 65 YEARS 65 years and over Population 64.5 million 94.5 million 7.0 million %age 39% 57% 4%

AND OVER 4% 15 -64 YEARS 57%

0-14 YEARS 39%

0-14 YEARS 15 -64 YEARS 65 YEARS AND OVER

Final project: Marketing Strategy

13

Market Potential
At an average , a Pakistani consumer spends 42 % of income on food. Retail sales of processed foods are expanding by 10 percent per year.

Consumer often prefer branded food items for both quality and status reasons Demand for packager food is growing Key factors are: Changing lifestyle Influence of foreign media Increase awareness of health principles Advertising is also helping to stimulate demand for branded food items. Per capita real GDP has increased at an average of 5.6 % per annum during the last three years This increase has led to a rise in average income of people and a increase in consumer spending Targeted segment- youth and elders- is health conscious and thus adds to the demand

Final project: Marketing Strategy

14

Industrial SWOT Analysis

Strengths:
The main strength of this industry is the lifestyle of the people is changing and this is reason that some local and multinational companies are entering in this industry. Demand is increasing day by day in the bottled water.

Weaknesses:
Weaknesses in this industry is that the lack of awareness and the poverty. Similarly there is lack of promotion and advertising is also the main weakness. Some time the lack of availability in the remote areas is also the strong reason

Opportunities:
Big competition in this industry is big opportunity in this industry and people are becoming more health conscious

Threats:
Trust of people is the main threats in this industry. So there should not be any complaint in this industry.

Final project: Marketing Strategy

15

Market Analysis:
Major players in this industry are: Nestle Kinley Sufi First Others

Market Share of Different Companies in Pakistan:

3 4% % 7% 16%

n e s tle a q u a fin a 48% kin ley s u fi firs t

22%
Final project: Marketing Strategy

o th e r

16

Nestle is the leader in this industry in Pakistan and the aquafina is the follower.

Consumer Analysis
We did a small research on consumer analysis: When you use bottled water?

25% 40%

on m eal at o ffice or univers ty on travelling

35%

More people using bottled water, when they are on traveling and some people use at office or university and 25 % use at meal.

Final project: Marketing Strategy

17

Why preference you aquafina?

15%

5% quality 45% price availability im age other 10%

25%

The quality of aquafina is increasing day by day, so the people who preference aquafina is 45 % and other prefer on price, availability, image and some people prefer in other reasons.

Final project: Marketing Strategy

18

What is the brand power of Aquafina ?

5% 25 % 3 0% e xcellent g ood a vera g e p oor 40%

Income level of Aquafinas users:

9% 32 % 14% 20 ,0 0 0 20 ,0 0 0 to 50 ,0 0 0 50 ,0 0 0 to 80 ,0 0 0 18% 2 7% 80 0 0 0 to 10 0 ,0 00 ab o ve 1 0 0,00 0

Final project: Marketing Strategy

19

MARKETING MIX
PRODUCT:
VISION: To provide superior water to our consumer MISSION: To provide the healthy water in order to facilitate people SLOGAN: Fina nahi tu Pena nahi

Short term goals

To boost the sales Creating value for customer

Long term goals

Make the brand loyalty As PEPSI Has To give the awareness to use it

Final project: Marketing Strategy

20

Product packaging Plastic bottles

500 ml 1500 ml

Labeling
sticker containing ingredients on the other side USP of the product is specified

USP

purity Taste of Aquafina is taste of. Water.

Final project: Marketing Strategy

21

Pricing Policy
On going rate price Almost the prices of all bottled water is same 500 ML 1500ML 12-14 24-26

DISTRIBUTION
PRIMARY DISTRIBUTION Producer TO distributor SECONDARY DISTRIBUTION Distributor TO retailer TO consumer

Final project: Marketing Strategy

22

PROMOTION
ADVERTISING STRATEGY TV RADIO NEWSPAPER MAGAZINE BILLBOARD BUSINESS TO BUSINESS PROMOTION (YELLOW PAGES)

Final project: Marketing Strategy

23

SWOT ANALYSIS OF AQUAFINA

STRENGTH
Parent brand is PEPSI Distribution channel is strong highly preferable for health conscious people

WEAKNESSES
It is new thing for the user of PEPSI. WEAK in TV commercial

OPPORTUNITY
Apply the experience GOOD MARKET GROWTH Lack of pure drinking water over the country

Threats
High expectation of the consumer is associated with PEPSI If not fulfill the expectation, might effect the reputation of PEPSI Big Leader Nestle already exists.

Final project: Marketing Strategy

24

MARKET GROWTH OF AQUAFINA

25% 20% 15% 10% 5% 0% SHARE SHARE SHARE SHARE IN 2004 NI 2005 IN 2006 IN 2007 11% 14% 17% 20% Series1

The growth of aquafina is increasing day by day. In 2004 it was only 11 % as shown in above diagram and now in 2008 it has been reached at 22 %.

Final project: Marketing Strategy

25

BIBLIOGRAPHY
CONSUMER SURVEY met with Sajid Ali ( sales manager ) www.altavista.com www.google.com www.wikipedia.com

Final project: Marketing Strategy