LASA 1: Product & Price

Marketing Plan: Waters Bottling Company Romeo Joson M1 A3

The Waters Bottling Company (WBC)

Introduction to Marketing

Marketing Mix

The water bottling company is comprised of the following approaches to distribution, pricing, promotion and distribution and the customer service

Pricing: The scheme of pricing is designed greatly to undercut the cost incurred per gallon of the purified water when compared to the bottled water. The pricing will be competitive with other filtration systems that are currently in the market (Halinen, 2012)

Distribution: WBC will be responsible for product distribution of bottled water to the home of the customers. It is the expectation that the route delivery person will have an approximate of 40 deliveries per day or an amount equivalent to 400 per month. One of the delivery people will be added when the number of the monthly deliveries will be required at the start and addition delivery will be added if the monthly deliveries exceed 1600 which is more of anticipation at the end of the four month of the business (Halinen, 2012).

Advertising and Promotion: The business model of marketing will be based on networking. This will rather be done in the context of a diverse community organization that WCB is active in. WCB intends to advertize the free trial offers by radio ads, door hangers, and the coupon packages. The existing competitors do not invest in advertising thus leaving the market open to WCB.

Customer Satisfaction: This element of the marketing mix will be attended to with utmost attention. One premise of the business model is generating sales based on prior actual relationship. Thus, WCB will ensure total customer satisfaction in order to safeguard future sales as well as maintaining a contact. To support customer retention, WCB will offer better products at favorable price (Armstrong, Adam, Denize, & Kotler, 2014).

The Marketing Environment

Following the flood that happened in Munsonville, the water supplies are still suspected making many residents turn to the bottled waters for health reasons. Nevertheless, even before the flooding, the demand for bottled water was growing

Potential Customer: Since the delivered water is relatively inexpensive, any household virtually can afford the bottled water at their homes. The cost of rent cool is $10 per month where an average family drinks about 20 gallons per month which amount to 4 to 5 bottles with a total monthly cost of about $30.

The size of the Market: Bottled water covers an area of about 17,571,067 gallons per year.

Competition: The operational environment of this company aims to counter attack about 12 bottled distributors listed in Willmenia yellow pages. Nevertheless, just seven companies are engaged actively in office and home delivery of the drinking water. The other five companies are the sales equipment of the sales. The three largest competitors are Crystal water, Nakuwell water, and blue spring waters.

Marketing and other functional areas of business

WCB is connected with other bottle companies. WCB depends on Bot bottles entirely on the production of the bottles. The company is in agreement with Bot bottling. Bots’ product liability insurance covers such claims against WCB. WCB will thus carry their insurance that is inclusive of $1 million umbrella liability policy. WCB will offer various water coolers to rent their customer base that is inclusive of a standard floor models or counter top models that offer choices if cold, hot and cold water, cold water only, cold water dispensing and room temperature.

Strategic Marketing

Planning Process

Distilled, spring and purified water is bottled by WCN of Willmenia, who fills the five gallon bottle that is labeled with its sparkling horizon logo. The refillable plastic bottles will be collected from the customers when empty and then returned to WCB biweekly for refilling and cleaning. Plastic is the preferred bottling package since it is unbreakable, lightweight and inexpensive to ship and produce.

In the planning process, the company will operate from approximately 2,500 sq. Ft of the warehouse space in Willmenia with a particular portion of the area being set aside for office space. WCB is presently working with the country officials in order to negotiate and identify the lease on an appropriate site.

Once WCB achieve the customer base of 3,00 or 12,000 deliveries bottles per month, the company will investigate investing in equipment to bottle water house. An investment of $250,000 would be required to purchase the bottling equipment.

The company will have a management team that will make all the decisions pertaining the decision making of the business. In the same regard, WCB is composed of a strong marketing team that plans for the marketing activities, identify new market, distribution and ensure customer satisfaction

The plan is based on leveraging the personal contacts where some will become customers while others will get the interest of joining the organization as a lower level of the networking structure. Having this in mind, WCB will increase their participation in many different organizations.

Strategy

Organizational Levels:

The owner and the founder, Dr. M Waters bring years of experience in bottling water and delivery to the company. His family has operated the business for a while now. The combination of the blue music in advertising is aimed to be inclusive in the adverts

The two key managers have been retained in a bid to enhance expansion and operations. ABI will serve as the operations manager while JEAN WATERs will be the route driver and the crucial position as the point of customer contact. In addition, there are two commission sales associates who will be hired to secure the customers

Goals and Objectives

Goals: Provide the customers with the finest quality water infiltration units. WCB exists to maintain and attract new customers. The goal is that in adhering to this, WCB will be the market leader in bottling water and exceed the expectations of the customers.

Objectives

Marketing Objectives

· Increase the referral of the customers by 4 percent a quarter

· Generate, 11 percent increase of the customers, turned associates per year

Financial Objectives

· 70 percent of the revenue stream to come from the recurring revenues by three

· Then WCN aims to double the digit growth rate for every successful year

Planning Gap

Ethics in Marketing

Despite the efforts of WCB to provide bottled water, there is a need to find ways to get people out of contaminated water. In fact, it is evident that no matter the affordability of the water, many people still use the contaminated water. As much as the company needs to market the products, it is necessary that the people be educated on the consumption of safe waters to reduce the diseases that affect many people. Some people lack water, and we need to find ways of helping them as a corporate social responsibility (CSR). The social contribution of nonprofit brand should be encouraged (Tsalikis & Fritzsche, 2013)

References

Armstrong, G., Adam, S., Denize, S., & Kotler, P. (2014). Principles of marketing. Pearson Australia.

Tsalikis, J., & Fritzsche, D. J. (2013). Business Ethics: A literature review with a focus on marketing ethics. In Citation Classics from the Journal of Business Ethics (pp. 337-404). Springer Netherlands.

Brei, V., & Böhm, S. (2011). Corporate social responsibility as cultural meaning management: a critique of the marketing of ‘ethical ‘bottled water. Business Ethics: A European Review, 20(3), 233-252.

Halinen, A. (2012). Relationship marketing in professional services: a study of agency-client dynamics in the advertising sector. Routledge.