Project On Aquafina 1d3f5i

Table of Contents 1: ACKNOWLEDGEMENT 2: Introduction Global Bottled Scenario What is Aquafina 3: EXECTIVE SUMMARY 4: HISTORY Launch in Pakistan 5: COMPANY LOGO/Tag line 6: VISION & MISSION STATEMENTS 7: CORE PRODUCT 8: HYDRO-7 PURIFICATION 9: PURIFICATION PROCESS 10: SWOT ANALYSIS 15: STRENGTHS 16: WEAKNESSES & OPPERTUNITIES 17: THREATS 18: MARKETING STRATEGIES 19: PRODUCT STRATEGIES 20: PRODUCT STRATEGIES 21: PRODUCT STRATEGIES 22: PRICE STRATEGIES 23: PRICE STRATEGIES 24: PROMOTION STRATEGIES 26: PLACEMENT STRATEGIES 27: RECOMMENDATIONS

ACKNOWLEDGEMENT I am very thankful to Allah Almighty who has given me the power and ability to think and judge the maters and then to make use of the blessed abilities. I am truly thankful to Madam. Sadaf whose guidance helped me all the way in completing this report.

Introduction: GLOBAL BOTTLED WATER SCENARIO Bottled Water is considered the smallest yet fastest growing and most dynamic segment of the beverage industry. The world bottled water market represents an annual volume of 89 billion liters and is estimated to be worth US$ 22 billion. Western Europeans are the world’s major bottled water consumers with per capita consumption of 85 liters, but the most promising markets are in Asia and the Pacific, with an annual increase of 15% for the period 1999-2001. The average world consumption grows by 7% per annum. The world total bottled water consumption grew from 19.186 billion gallons in 1996 to 30.103 billion gallons in 2001ing a compound annual growth rate of 9.4% during the period. The U.S., Mexico and Western European countries are the leading bottled water consuming countries. 1.2. ASIAN BOTTLED WATER INDUSTRY The bottled water industry is one of the fastest growing industries in Asia. Zenith International, specialist consultants for Asia Bottled Water Association (ABWA) reports stunning growth of 45% since 1998 across 50 countries in Asia, Middle East and North Africa. Total sales reached 25,270 million liters, more than double the level of 1995. The region now represents 23% of global consumption with market value at US$ 4,700 million

What is AQUAFINA: Aquafina is a brand of bottled water products produced by PepsiCo, Inc., consisting of both unflavored and flavored water. Aquafina assures the Refreshing taste of 100% pure, non-carbonated, purified drinking water. The consistent purity and great taste of Aquafina are guaranteed by means of a state-ofthe-art purification process that includes reverse osmosis and carbon filtration.

Executive Summary The current situation of AQUAFINA was analyzed. During this process of analyzing the product I came across some problems and some advantages prevailing in the company. As AQUAFINA is newly launched in Pakistan so its history is not too long. AQUAFINA has taken huge step by entering in the market where a strong competitor in mineral water was holding the market. I am doing this project because I am interested in studying the new entrants of the market and their current problems. The project of AQUAFINA covers the following marketing areas.    

MISSION \VISION OF THE COMPANY Marketing Strategy SWOT Marketing Mix

After this survey we came to that the company is working hard to maintain the standard of pure water. Company is doing cost based pricing and the motive of the company is to attain the maximum share. They are introducing competitive prices with high quality. The company wants to hold the market through heavy distribution.

HISTORY OF AQUAFINA AQUAFINA is a product of PepsiCo. It was launched in America in 1988. It is the top bottled water in America. After doing a good business in the other countries of the world it has recently been launched in Pakistan.

LAUNCHING IN PAKISTAN It was launched in Pakistan on NOV 19, 2005. It was first launched in Lahore and ading areas of Lahore like Qasur, Gujranawala etc. It was launched in further areas in the recent years.

Mission And Vision of the company

Mission “To be the world's premier consumer products company focused on convenient foods and beverages. We seek to produce healthy financial rewards to investors as we provide opportunities for growth and enrichment to our employees, our business partners and the communities in which we operate. And in everything we do, we strive for honesty, fairness and integrity.”

Vision Our vision is put into action through programs and a focus on environmental stewardship, activities to benefit society, and a commitment to build shareholder value by making PepsiCo a truly sustainable company.

AQUAFINA- PRODUCT INFORMATION Enjoy the crisp, refreshing taste of Aquafina – 100% pure, non-carbonated, purified drinking water. The consistent purity and great taste of Aquafina are guaranteed by means of a state-of-the-art purification process that includes reverse osmosis and carbon filtration. Since its debut in 1995, Aquafina has won over consumers with its great taste and purity. AQUAFINA is purified non preserved water. It has a PH scale of 7 which is standard taste of water being used in Pakistan. It has ISO 9000, 9002, 14000 certified. It’s true. Water is good for you. The more you drink, the better you feel and since our state-of-the-art HYDRO 7TM purification system removes substances most other bottled waters leave in, you get pure water and perfect test every time. So make your body happy. Drink more water!

Brand Logo and Tag line

Core Product The core product of AQUAFINA is mineral water. Available bottle sizes 20 oz bottle

24 oz bottle

1 liter bottle

1.5 liter bottle

5 Gallon Can

How Aquafina is so pure? Every bottle of AQUAFINA is produced at one of our water purification centers through the hydro-7 process. That’s how you know you are getting pure water and consistent taste every time you open an AQUAFINA. Anytime, anywhere Since our state of the art HydRO-7 purification system removes substances most other bottled water leave in, you get pure water and perfect taste every time. So, make your body happy with these shapes and sizes. To bring you water as pure as Aquafina, they create the state of the art Hydro-7TM purification system. See 7 step of Aquafina to pure water and perfect taste.

Hydro-7 process

1.Perfiltration

With this first filter, that says Goodbye to tiny-sized particles in water.

2.Polishing Filter

Any smaller particle that gets through this first round of polishing filter will catch them.

High-intensity Light At this stage, a burst of high-intensit light imparts energy to the water stream to protect against naturally occurring organic substances in the water.

1. Reverse Osmosis (R.O.)

Reverse Osmosis uses pressure and a hyperfilter to remove over 98% of the Total Dissolved Solids (TDS) from our water.

2. Charcoal Filtration Time to isolate those trace elements that can affect the taste of water by using a charcoal filter.

Polishing Filter Here’s where every H & O gets a nice polish. Not with a soft cloth. But with a polishing filter that’s designed to make your water crystal clear.

3. Ozonation

Company’s final seals in the purity. By ing purified oxygen molecules are brought together as assurance that unwanted particles are kept away. After they’ve done their job, they revert back to double oxygen molecules ensuring you enjoy pure water and perfect taste with every bottle of Aquafina.

Purity Guaranteed By this process the purity is guaranteed for our customers

SWOT ANALYSIS Strength:  Brands image  Financially sound  Distribution channel/coverage  Technology advancement  Quality  Skilled management  Price competitive  Personnel aspect  Market expertise  International component  High promotional activities

Weakness:  New to the company  Low market share

Opportunities:  Capture the market  New areas  Market potential  Brand awareness  Increase in investment

Threats:  Higher availability of competitors i.

Nestle Pure Life

ii.

Aqua Guard

iii.

Wave Associates

iv.

Nature(Health factory)

v.

Star Traders

vi.

Pure Pak

vii.

Kinley

 Direct competitors are about to enter in Pakistani market.  Technological environment  New in market

4 P’s OF AQUAFINA PRODUCT STRATEGIES DIFFERENTIAL ADVANTAGE: As the brand name of AQUAFINA from PEPSI is itself a differential advantage of the product so it needs nothing else to convert the consumer interest into sales of the product. The Pepsi Co. never compromise on its produce standards, and the quality is taken as the core value for company’s product. Quality is never compromised in the Pepsi Co. for their products. FUTURE PLAN FOR AQUAFINA: The company has introduced the flavored water in abroad but not yet in Pakistan, Company has its intention to introduce the new flavored water in Pakistan, and the company is working in this regard as it needs a good market for the flavored water because people are hesitant to buy such water in Pakistan. And this also needs a good marketing. EXPIRY OF PRODUCT: Expiry of the bottled water is judged by the quality assurance department of the AQUAFINA. The expired water is disposed-off properly because the expiry is printed on the label of the plastic bottle. MAKING OF WATER: In the making stage of the AQUAFINA, the water is properly boiled and sterilized on the state of the art plants, and then some minerals and health nutrition are added in this to make it healthy and pure enough and free from germs drinking water. PRODUCTION TIME: The minimum time is advised to complete a single bottle to follow the economy of state. The time required to complete a single pack of AQUAFINA is approximately 20 seconds. MEASURES BEFORE DISPATCH: Some measures are taken to maintain the quality of the product AQUAFINA, as it is kept in factory for 24 hours before dispatching it to the market to avoid any complaints from the consumer. So it’s necessary to keep the fresh stock in factory for safer marketing. QUALITY INSPECTION: The quality inspection teams not only check the ready water from the factory and from the stores but also from the market as they don’t want the supply of unhealthy water to the consumer as it destroys their credibility. BRAND NAME: The brand name is itself a bigger ment for the AQUAFINA, as its backed by the strong brand PEPSI CO. the name AQUAFINA has two parts. AQUA means WATER and FINA is derived from the word FINE. That means FINA WATER. PACKING OF PRODUCT: The label of the bottled water is so attractive that it’s made of very fine colors, and packing material used in this bottle is also very safe as its closure is made of plastic, and its closure is wrapped by another plastic seal which protects the germs to enter into the bottle. Also the Blue Fine color wrapper is placed on the bottle to make it attractive enough for the consumer.

PRICE STRATEGY

PRICE COMPARISON: The AQUAFINA compares its price with Nestlé PURE WATER as they have good market place in the country, Nestle are the strong competitors of the AQUAFINA, so the AQUAFINA sets its price according to the market situation and also the price is based on the activity of its strong competitor Nestle. AQUAFINA does not compare its price with COCA COLA’s KINLEY as the have not as much market share as the Nestle or AQUAFINA itself has. PRICE MATCHING: AQUAFINA try to match with the Nestlé’s price strategies, as AQUAFINA lower downs its price if the Nestlé is going down in its pricing techniques and vice versa. TARGET MARKET: Target market of AQUAFINA is off course the urban areas as in rural areas no one is interested to drink the bottled water as they think that they have canals and tube wells to suck their own clean and clear water beneath the surface of land. So the marketing in rural areas is almost 10% as compared to the urban areas. NO INTENTIONS TO INCREASE THE PRICE: AQUAFINA has no intentions to increase the prices of their bottled water in the near future even it would be a top of the mind product in future.

Pricing Policy On going rate price 500 ml

Rs. 20

1500ml

Rs.40

PROMOTION STRATEGY SEPARATE DEPARTMENT: AQUAFINA has its separate department for the marketing activities, as it sees the and experience the market, conduct market survey, takes from the people, prints brochures for the people at roads, give samples to people free of cost, takes public opinions through door to door survey, get informed by public interest through mailing and try to adopt every possible action through which it gets the maximum information about the consumer trends. SPONSORSHIPS: AQUAFINA plays an important roll in sponsoring the events in educational institutes like schools, universities and other institutions. Also it conducts its own programs and event, cultural shows, television backhand promotions, sponsors cricket matches and other games, give a necessary contribution to the event held by other organizers. Such promotional activities are at the top of the ment techniques. MEDIA: Both the print and electronic media is used for the AQUAFINA’S promotions. All the ments are run on the televisions. Also they on the web. Although these promotions can increase their cost but good strategic decisions keep the balance between cost and promotions. PROMOTIONAL BUDGET’S LIMITS: Obviously like any other company, the AQUAFINA also bear some limits in its promotional budgets, in the initial stages when the AQUAFINA was launched in Pakistan, heavy promotions were required, because when the company launches a new product it has to spend more on its promotional activities to make the consumer more familiar with the product in comparison with others. So the same was happened with AQUAFINA and the excessive rates were adjusted in the other brands of PepsiCo. And now also the AQUAFINA has its yearly budget for promotional activities.

PLACEMENT / DISTRIBUTION STRATEGIES Main Distributors: The main distributors of AQUAFINA are the Riaz Bottlers Lahore, they are providing the full time services to the Lahore and surroundings by distributing the AQUAFINA water. No. of other Outlets: There are more than 150 outlets of AQUAFINA in Lahore, qusoor and Gujranwala which are providing the bottled water to the consumer for drinking purpose. Placement Time: The company retains its whole fresh stock in the premises of the production plant for 24 hours to avoid any complaints after distribution to the retailers. And the maximum time to retain the bottled water in factory is 3 to 4 weeks, all the stock is distributed in Lahore and surroundings within this time frame. Cities of Distribution: AQUAFINA is supplying its product in major cities of Pakistan like faislabad, Karachi, gujranwala, Lahore, and Peshawar and is aiming to make its distribution more intensive to the other cities of the country by introducing it as safe and healthy drinking water. Domestically Aquafina has covered the following cities:  Karachi  Islamabad  Lahore  Rawalpindi  Murree  Gujranwalla  Faisalabad  Multan  Hyderabad  Sukker  Quetta  Peshawar

No. of Vehicles: AQUAFINA is possessing 135 heavy vehicles for its distribution to the respective areas mentioned above. Through them they are taking the full time advantage of heavy distribution.

Market Survey

Conclusion By this research on the Aquafina I concluded following, The pepsi is well knowned by its name and has a strong place in its market, but the aquafina is not that popular with so many competitors in the market like Nestle, Kinley etc, due to that company did cost based pricing in the start ensuring the quality by using the HDO7 process which ensures the purity. The company is now providing the water at nearly the same price to that of Nestle, and are the competitors in the

Recommendation       

The company should not delay launching in other cities The company should make public aware of the features available in the product by mentioning it in the commercials Company should introduce their product into the other cities of Pakistan as like as Pepsi Brand. Company should maintain the quality of the bottle water Government should reduce taxes on the manufacturing companies. Maintain low cost as they are currently serving the markets of Pakistan. They should place refrigerators of AQUAFINA in the outlets for marketing purpose.

Bibliography met with Sajid Ali ( sales manager ) www.altavista.com www.google.com www.wikipedia.com www.pepsi.com www.pepsiworld.com www.pepsico.com www.aquafina.com www.pepsico.com.pk

www.pakbev.com