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INTRODUCTION TO MARKETING BUSINESS PLAN 1 INTRODUCTION TO MARKETING BUSINESS PLAN Natural Spring Granite Filtered Bottled Water Company Stacey Ogle Principles of Marketing | MKT230 A01| December 17, 2014

Transcript of OgleS_M5_A1

INTRODUCTION TO MARKETING BUSINESS PLAN 1

INTRODUCTION TO MARKETING BUSINESS PLAN

Natural Spring Granite Filtered Bottled Water Company

Stacey Ogle

Principles of Marketing | MKT230 A01| December 17, 2014

INTRODUCTION TO MARKETING BUSINESS PLAN 2

Table of Contents Page #

Executive Summary 2

The Environment Part 1 3

Marketing Research and Targeting Part 2 9

Product & Pricing Part 3 19

Place & Promotion Part 4 29

Personal Selling & Global Markets Part 5 35

_____________________________________________________________________________

Executive Summary

The purpose of this report is to evaluate Natural Spring Granite Filtered Bottle Water

industry and comprehend out we can develop strategic intent for their business with the internal

and external environments. The analysis of the management process will achieve

competitiveness and earn better than average returns on investments.

It will also identify the target market opportunities with in the US and with global

markets along with the threats in those markets that we will overcome by using this plan analysis

like SWOT, Marketing Mix, and Product Life Cycles etc.

By the end of this report, our future strategy will be mentioned as well as all

recommendations about Natural Spring Granite Filtered Spring Water plan into strategic

orientation in order to perform better in all business worlds.

INTRODUCTION TO MARKETING BUSINESS PLAN 3

Introduction to Marketing Plan: Natural Spring Granite Filtered Spring Water Bottled Company.

The Environment

Marketing, more than any other business function, deals with customers. Although we

will soon explore more-detailed definitions of marketing, perhaps the simplest definition is this

one: Marketing is managing profitable customer relationships. The twofold goal of marketing is

to attract new customers by promising superior value and to keep and grow current customers by

delivering satisfaction. Armstrong, G. & Kotler, P. (2009)

Water is a necessity to survive for all of humankind. Water that is from a source that is

untreated, for example, bore wells, rivers etc. is not safe for anyone to drink. Water with

impurities can cause you to get sick or disease. Therefore, water is purified and bottled for

humankind to drink. This bottled water is used every ware you look like offices, schools,

restaurants, railway stations, airport, bus stations, hospitals, homes, etc. Kumar, N. (2004-06).

Just about every ware you go has some kind of water vending machine available to purchase a

bottled water.

Marketing Mix

Product

North Americans have recently begun to drink bottled water, but already the distinction

between spring water, mineral water, and filtered tap water is blurred beyond redemption.

Kumar, N. (2004-06). Spring water must come from a natural spring with proven purity of

contaminants; mineral water must contain 2000 parts per million in minerals and filtered tap

water means just that. Kumar, N. (2004-06).

INTRODUCTION TO MARKETING BUSINESS PLAN 4

We will offer an assortment of options for purchase to the consumer. The most recent

added is the six pack of 5-ounce children size waters that all have the spill proof caps. We will

also offer the 12 oz. or the 1-liter, which can come in the individual or the case of 12 or 24. Do

not forget about the 3 gallon and 5 gallon refill containers that you can fill up at a number of our

refilling stations.

Place

Since we brought Pepsi into our plan we will be using and implementing their facility to

transport the bottled water. We will also purchase a big factory in NH where we are currently

located. To get the water bottled and boxed up for transport.

Price

Price is going to be for the middle class family or single parent homes that want the great

test and healthy spring mineral water for their family without the real expensive price.

According to the Beverage Marketing Corporation (BMC), the average wholesale price per

gallon of domestic non-sparkling bottled water was $1.13 in 2012. From popular retail food

product, bottled water is available at many differing price points. International Water Bottled

Association. (IBWA). (2014).

BMC also notes that research shows consumers most often tend to buy bottled water in

bulk from supermarkets or large discount retailers as they often prefer to purchase bottled water

in cost-saving volume. International Water Bottled Association, (IBWA) (2014).

Where did consumers buy bottled water?

45% Mass Merchandisers, club stores, dollar stores, online (where the price for gallon is

generally much lower).

28.5% Grocery stores.

INTRODUCTION TO MARKETING BUSINESS PLAN 5

5.7 % Convenience Stores (where the price per gallon is likely to be higher)

3.5% Drug Stores.

NOTE: The remaining 17% is accounted for through vending, food service, and other

sales. International Water Bottled Association. (IBWA). (2014).

Promotion

With every purchase of the a case of 12oz bottles we can promote or coupon a promotion

to get a free 5oz six pack of the spill proof caps to market these for parents with small children

on the go. We can also offer one time free water container with cap on first purchase of the

bottled 3 and 5-gallon refillable containers if purchased more than three of any combination of

sizes.

For the Social Media promotion, we can have a promo code for the same promotions

offered in the stores and add additional promotion codes for discounts on products and or free

shipping of products with certain purchases.

The social media ads and television ads are going to be specific towards the quality of our

brand. It will be all about the natural spring water is pure and really comes from the NH springs.

Informing consumers that we are our own company and our core standards are to give the best

prices for the healthiest water on the market.

Marketing Environment

Key success factors: Water is the world’s most attractive beverage category. Demand is

increasing day by day in the bottle water industry. The impact of brand is important because of

notoriety. People are always more interested in Health and Fitness. Water improved the

appearance of skin, gives more energy and water is important for health. De Melo J. (2012,

November 20).

INTRODUCTION TO MARKETING BUSINESS PLAN 6

The retail sale of bottled water accounts for about 88% of the bottled water market, and is

the largest and fastest growing segment of the United States bottled water industry. Consumers

generally purchase bottled water in convenient 2 ½ gallon, 1 gallon and smaller sizes – including

familiar 16.9 ounce half liter bottles through grocery, club convenience stores and supermarkets

and vending machines. International Water Bottled Association. (IBWA). (2014)

The home and office delivery portion of bottled water industry accounts for 12% of the bottled

water markets. These services involve delivery of three, four, and five-gallon bottles used with

water coolers. The segment of the bottled water market has been providing customer s with the

safe, quality products for over one-hundred years in the US.

Marketing and its relationship with other functional areas of business

The vast majority of companies that are in the bottled water markets are small, locally-

owned companies, with 60% reporting less than 2 million in annual gross sales and 90%

reporting less than 10 million in annual gross sales. These are local family entrepreneurs with

deep roots and strong ties with in the communities. International Water Bottled Association.

(IBWA). (2014).

BMC also notes that research shows consumers most often tend to buy bottled water in

bulk from supermarkets or large discount retailers as they often prefer to purchase bottled water

in cost-saving volume. International Water Bottled Association. (IBWA). (2014). BMC also

notes that research shows consumers most often tend to buy bottled water in bulk from

supermarkets or large discount retailers as they often prefer to purchase bottled water in cost-

saving volume. International Water Bottled Association. (IBWA). (2014).

INTRODUCTION TO MARKETING BUSINESS PLAN 7

Strategic Marketing

Planning Process

Since 2001, Americans have increased their annual per capita consumption of bottled

water by more than 12 gallons. The continued increase per capita consumption indicates that

customers see bottled water as a healthy alternative to other packaged beverages. Consistent with

this view, sales revenues for the U.S. bottled water market in 2013 were 12.3 billion in wholesale

dollars, a 4.0% increase over the previous year. International Water Bottled Association (IBWA).

(2014).

Differentiation based price based marketing strategy a business that opted for the price

route in its competitive battle with enjoy certain flexibilities in matter of its product and used as

main competitive level. We will price products to suit the varying competitive demands and it

will enjoy cost advantages, which permits it to resort a price based fight. Kumar, N. (2004-06). If

the marketer understands consumer needs; develops products and services that provide superior

customer value; and prices, distributes, and promotes them effectively, these products will sell

easily. Armstrong, G. & Kotler, P. (2009)

Today for any business organization to be successful, it has to provide its customer with

the differentiated product that is a value buy for them. In order to cater to the changing needs of

the customer the business has to continuously come out with the variants of the products so that

it can target the maximum segments.

INTRODUCTION TO MARKETING BUSINESS PLAN 8

Since 2001, Americans have increased their annual per capita consumption of bottled

water by more than 12 gallons. The continued increase per capita consumption indicates that

customers see bottled water as a healthy alternative to other packaged beverages. Consistent with

this view, sales revenues for the U.S. bottled water market in 2013 were 12.3 billion in wholesale

dollars, a 4.0% increase over the previous year. International Water Bottled Association (IBWA).

(2014).

Strategy

Organizational Levels

Natural Springs Granite Filtered Bottled Water Company is dedicated to long-term bottle

water markets. It will not accept short-term financial gains, as long term is the ultimate goal. We

want to be around for hundreds of years as a well-known company that stands behind the

company and its product. To do so we have to think of long term goals only.

We have a companywide marketing meeting once a month with all department heads to

confirm that all departments are doing their part to assist with the marketing strategies set forth

for the future advertising campaigns. The departments heads will relay information to the rest of

their departments and ensure they are all informed as well. We have a suggestion box for

anybody that has any marketing ideas or strategies they want to share with the marketing team

and every suggestion will be thoroughly reviewed and response giving to the person that

submitted the idea. Higher management, for approval before implemented in the marketing or

advertising campaign, will review everything done at the meeting.

Goals and Objectives

Natural Spring Granite Filtered Bottled Water Company will sub-contracting out a share

of the profits of the business to distributer, for return on using their distribution, process. They

INTRODUCTION TO MARKETING BUSINESS PLAN 9

get a quarter of the profits in the event that our overhead was meat first. Of course, the third

party company will have no rights to the actual making of our product and whom we chose as a

retailer to sell it.

We will start with just NH for now but plan on expanding too many more states with in

the first year. If the company is taking off and sales are up with company making money then we

will expand to the rest of the United States within 5 years and move to international sales within

10 years.

Planning Gap

Ethics in Marketing

Natural Spring Granite Filtered Bottled Water Company is actively adding value to our

organization and customers. We will adhere to all applicable laws and regulations and

embodying high ethical standards in our choices. We will properly advertise all products for their

intended and promoted uses. We will embrace, communicate, and practice the fundamental

ethical values that will improve consumer confidence and comply with all government

regulations and environmentally safe standards. These basic values are intentionally aspirational

and include honesty, responsibility, fairness, and respect.

Market Research & Targeting

Market Research

Research Methods & Data Mining

One research method used is the online survey, see the survey attached separately.

Another research method would be data mining. Data mining would be investigating past sales

of the company to see about markets in the past that the company might have sold too like

military, medical facilities, and schools, etc.

INTRODUCTION TO MARKETING BUSINESS PLAN 10

Marketing Research Process

Problem: The vast majority of bottled water companies in the U.S. are small community

based companies using local water sources to distribute their products with in an average radius

of 300 miles from their bottling facilities. International Water Bottled Association (IBWA).

(2014).

Opportunity: Be the first company to offer bottled water through out many east coast

states and move on the whole United States in the near future. Using a third party distributor for

25% of profits after overhead is meet will gain the access to the trucks and facilities needed to

gain more territory. Since the third party distributor has steak in the wellbeing of the company

that will ensure they keep up the standards and practices equal to the Natural Spring Bottle Water

Companies are.

Objectives: We are going to put out a survey that will ask about out buy three get 1 fee

of our 24 bottle case of 20 oz. bottled water For the price of only 9.99. This will allow us to do

the research needed to see if sales went up because of the coupon and what age, gender, number

of people in household or family.

Budget: We will used 10 percent in our promotional grand opening for advertisements

on TV commercials and online pop up ads. Some will also go to the on line survey being

conducted to get more research on how our promotions are doing after the fact. After the initial

budget of 10 percent, it will go down to the standard 3 percent of total budget on advertising.

Time Table: We are going to put our discounts online and coupons out in ads just after

Christmas. This is when people are making New Year’s resolutions to lose weight and get

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healthy again after the holidays. Water is a big part of that type of heathy lifestyle that people

will be back in the mood for come the first of the New Year.

Primary Research: See attachment of example of Survey. Secondary Research: Sales of

bottled water grew nearly 7 percent between 2011 and 2012, with consumption reaching a

staggering 30.8 gallons per person. Gleick P. (2013, April 25).

Gleick, P. (2013, April 25)

In addition, we have the market of the Home Delivery Cooler Refill side of the business to

keep going in our local market but to also expand our great tasting spring water to even more

communities. We are going to expand that coverage to more big cities and these first two

expansion cities are going to be metropolitan areas that have our billboard advertisement just

before entering the city. Design Research Instruments: You can see that my survey does follow

the guidelines set by the Argosy classroom test This information is from the Argosy Online

Marketing Principles M2 A2 (n.d.).

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Keep it brief and simple

Provide instructions for answering questions.

Graphics are pleasing and easy to read.

Close Ended Questions – Used multiple choice.

Open Ended Questions – Asked to leave a brief comment in own words.

Collecting Data

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 20120

1

2

3

4

5

6

7

8

2.6

3.4 3.6

5.15.7

6.16.8

6.5 6.4 6.4

5.4

U.S. product shipment value of bottled water

Year of Product Shipment Values of Bottle Water

U.S.

Bill

ion

Dolla

rs

US Census Bureau. (2014, August)

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Private Lable

Dasani Nestle Water

Pure Life

Aquafina Poland Spring

Glaceau Smart Water

Glaceau Vitamin Water

Dear Park Ozarka Fiji0

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

1.8

2 1.9

0.92 0.9 0.86

0.58 0.6 0.530.41

0.32 0.25

Leading bottled still water brand sales in the U.S., 2014

Name of top 10 companies 2014

U.S.

Bill

ion

Dolla

rs

Beverage Industry Magazine. (2014, July).

Mass Merchandisers / Club Stores

Grocery Stores

Convenience Stores

Drug Stores

Vending/Food Service/Other Sales

0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 35.00% 40.00% 45.00% 50.00%

45.30%

28.50%

5.70%

3.50%

17.00%

Share of bottled water sales in United States in 2012 by distribu-tion channel.

Percent of Sales

Dist

erbu

tion

Chan

nels

Beverage Industry Magazine. (2014, January).

Organize and Analyze Data information was also retrieved from the Argosy Online Marketing

Principles M2 A2 (n.d.).

Sift for data relevant to your immediate market needs.

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Use subjective information only to support the general findings of objective

information.

Check for consistency of data. For example, do the customer demographics provided

by the local city office agree with your survey results?

Quantify results by grouping all similar responses.

Try combining data from different sources to obtain additional information that may

be of use now or later.

Present and Apply Marketing Research Findings.

With all of the research done on the bottled water industry, Natural Spring Bottled Water

Company will merchandise some mass merchandiser or club stores, for example, Costco and

Wall Mart. In Addition, to satisfy the needs to get product out to the major grocery’s stores, for

example, Safeway, Savemart, and Pack-n-Save would be a few to mention. Since these are the

top selling markets per research, we start out with these two distribution channels for our retail

side.

To get the Natural Spring Bottled Water name into the home of the consumers we are

going to have our product launch just after Christmas with the design of our company logo on

each bottle sold to create the initial brand awareness you need. We have a marketing campaign

on mass media for example TV, Online, and even some Internet surfers that we hired to get our

name in the social media. We have also purchased some advertisements next to the casino

billboards to ensure that all people that are driving to the casino will also see our product launch.

The last this would be to pass out business cards. Word of mouth is always a big source of

advertising.

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The home and office delivery portion of the bottled water industry accounts for about

12% of the bottled water market. These services involve delivery of three to four five-gallon

bottles used with water coolers. This segment of the bottled water market has been providing

consumers with safe quality products for over one hundred years in the U.S. Bottled Water

Industry: Home and Office Delivery (n.d.).

Consumer Behavior

B2C vs. B2B

Consumer purchases are influenced strongly by culture, personal and psychological

characteristics according to Armstrong, G., & Kotler, P. in 2009 when they wrote the Ninth

Edition Marketing, An Introduction.

For culture, marketers need to spot cultural Shifts in order to discover new

products that might be wanted. Under culture, we have Subcultures or groups of

people that shared value systems based on common life experiences and

saturations. Subcultures also include nationalities, religions, racial groups, and

geographic regions. National Spring Bottled Water Company will try to pick one

of these categories to assign to part of the marketing team to target that specific

type of customer to sell our water. Last, we have social class, which is measured

by a combination of occupation, income, education, wealth, and other variables.

In addition, Armstrong, G., & Kotler, P. (2009) had this to say about the business buyer’s

side of behavior.

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Business Buyers usually face more complex buying decisions that do

consumer buyers. Purchased often involve large sums of money, complex

technical and economic considerations, and interactions among many people at

many Levels of the buyer’s organization. The business buyers need more time to

make decisions. The process also tends to be more formalized then the consumer

buying process. Large business purchases usually call for detailed product

specifications, written purchase orders, and carful supplier searches and formal

approval.

Consumer Decision Making Process

“The key objectives are to get customers to buy your product and then retain your

customers. At the planning stage, organizations usually divide their product offer into several

small manageable chunks”. Armstrong, G., & Kotler, P. in (2009).

“When identifying a set of possibilities to satisfy the need, the customer evaluates each

option according to specific criteria and the evaluation criteria may consist of price, ease of

availability, or relative benefits of certain choices”. Armstrong, G., & Kotler, P. in (2009).

The final purchase usually involves the customer interacting with an array

of influencing factors. Post purchase, the customer forms opinions about the

product, opinions that influence future purchase decisions. As a result, making a

simple purchase decision involves complex iterative processes, a host of

influencing factors, and several decision criteria. Armstrong, G., & Kotler, P. in

(2009).

Factors Affecting B2C and B2B Consumer Behavior

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Understanding customer behavior involves studying how an individual interacts with the

marketing mix and the 4Ps of price, place, promotion, and product. Argosy University

Classroom. Principles of Marketing (n.d.). The evaluation criteria may consist of price, ease of

availability, or relative benefits of certain choices. Argosy University Classroom. Principles of

Marketing (n.d.). Each customer's consideration for an offer is influenced by factors such as

culture, attitude, previous learning, and personal perception. Using these factors, the customer

decides to buy or not, what brand to buy and where to buy that brand from”. Argosy University

Classroom. Principles of Marketing (n.d.).

An organizations buy activity consists of two parts. First, the buying center that is made

up of all the people involved in the buying decision, and the buying decision process. The buying

center and the buying decision process are influenced by internal organizational, interpersonal,

and individual factors as well as by external environmental factors. Armstrong, G., & Kotler, P.

in (2009).

Environmental factors are level of primary demand, economic outlook, and the cost of

money. In addition, shortage of key material, many companies now are more willing to buy and

hold larger inventories of scarce materials to ensure adequate supply. Organizational Factors

would be the buying organizations own regulations, objectives, policies, etc. The marketer must

understand the buyer limitations and who they are and how many of them would be involved in

the buying decision. Armstrong, G., & Kotler, P. in (2009).

Interpersonal factors are how the buying decision group of people influences each other

and how the process makes influences these people individually and as a group. Each participant

in the business buying decision process brings in personal motives, perception, and preferences”.

Armstrong, G., & Kotler, P. (2009).

INTRODUCTION TO MARKETING BUSINESS PLAN 18

Market Segmentation

Market Segmentation Concepts

Market Segmentation involves dividing a market into smaller groups of buyers with

distinct needs, characteristics, or behaviors that might require separate marketing strategies or

mixes. Armstrong, G., & Kotler, P. (2009).

For the Natural Spring Bottled Water Company, we have chosen to segment markets

based on Family Life Cycle. We are going to market to the family that has young children with

the spill proof tops that can make it easy to give a child a water without spilling in the car even if

they drop it. This will also include a marketing to the Young mother that might be still trying to

get over having the baby with in the past five or so years advertising the value of water in

person’s body and how good our Natural Spring Water tastes compared to the filtered bottle

waters on the market. The man that works manual labor in construction all day needs to keep

rehydrated while working would never go to the job site without his daily consumptions of

natural spring water to quench his thirst and natural minerals the body loses while sweating out

the day. This family does not have to be any certain age group just with younger children so we

will not be leaving any one out age wise. The kids will like the spill proof tops as much as the

parents do and the husband will buy because his wife will put in lunches until he is use to

making sure he gets the correct brand if he goes to the store.

Segmentation Process

Markets consist of buyers, and buyers differ in one or more ways. They may differ in

their wants, resources, locations, buying attitudes, and buying practices. Through market

segmentation, companies divide large, heterogeneous markets into smaller segments that can be

INTRODUCTION TO MARKETING BUSINESS PLAN 19

reached more efficiently and effectively with products and services that match their unique

needs. Armstrong, G., & Kotler, P. (2009).

For the Natural Spring Bottled Water Company, we have chosen to segment markets

based on Family Life Cycle. This would be a family that has young children. We can break down

that market to targeting to three branches, which is the Mother, Kids, and Father or parents

together. This family does not have to be any certain age group just with younger children so we

will not be leaving any one out age wise. The kids will like the spill proof tops as much as the

parents do and the husband will buy because of the replenishment of the bodies need for

hydration.

Segmentation Strategies

The four major segmentation variables for consumer markets are geographic,

demographic, psychographics, and behavioral. Demographic has to do with the world regions,

which would not apply to this business plan because it will only be in U.S. markets for now.

Demographic would include, age, gender, family size and family life cycle, Income, occupation,

religion, education, race, generation and nationality. Psychographics is social class, lifestyle, and

personality. Last, the Behavioral consists of occasions, benefits, user status, user rates, loyalty

status, readiness stage, attitude toward product. Armstrong, G., & Kotler, P. (2009).

Target Marketing

Target marketing consists of evaluating each market segment’s attractiveness and

selecting one or more market segments to enter. Armstrong, G., & Kotler, P. (2009).

The Natural Spring Granite Filtered Bottled Water Company is will be targeting females

(mostly Caucasian) between the ages of 26 to 46 of age with children. There are over 100 million

women strong in America and they are well in tuned with maintaining their family health and

INTRODUCTION TO MARKETING BUSINESS PLAN 20

wellness. They are well-educated, professional career minded and have significate purchasing

power since they make an average of 60,000 a year. They are environmentally friendly and have

established traditional routines centered on home and family. These women have a strong sense

of responsibility with in the community but will take advantage of opportunities for personal

growth.

Advertising the value of water in person’s body and how good our Natural Spring Granite

Filtered Spring Water tastes compared to the filtered bottle waters on the market. Our discounts

and promotions will appeal to the cost side of our water with middle class families. Do not forget

to market are ecofriendly bottles that we use for our water. We are an eco-friendly company and

everyone can appreciate that to stand behind out product and our environment.

The Product

Product Levels

Researching product levels, Kotler has updated the three level model to a five level

model that will be used for this business plan so we have the most current information available

to market our natural spring water. The five product levels are, core benefit, basic product,

expected product, augmented product, and the potential product. Raab, M. (2010, November 13).

Core Benefit - “The most basic level is the core customer value, which addresses the

question: What is the buyer really buying? When designing products, marketers must first define

the core, problem-solving benefits or services that consumers seek.” Armstrong, G., & Kotler, P.

(2011).

Naturally-mineral rich crystal clear granite filtered spring water is sourced from natural springs

that were made by nature and the water comes from a 40-feet-think to 90-feet-thick clay and

granite layers deep below the ground, protecting it from any man-made pollution. Natural

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Springs granite filtered spring water contains no nitrates; it is naturally free of chemicals. Nicolet

Water Quality: Fresh From The Forest. (2014).

After water is collected at the springs in NH, it undergoes stringent controls to ensure each drop

has been screened for 30x more contaminants than the leading pitcher filter removes. Our testing

standards exceed the standards set by the EPA and the FDA. Poland Spring® 100% Natural

Spring Water (n.d.).

We seal every drop of our natural mineral-rich crystal clear granite filtered spring water in

specially designed bottles that are recyclable, regularly tested for safety, and free of BPA*

(bisphenol-A) Poland Spring® 100% Natural Spring Water. (n.d.).

Basic product – The Marketer has to turn the core benefit to into the basic product.

Raab, M. (2010, November 13). The basic product that might satisfy the inner needs of the

consumer. On this stage, the product only contains those values that are very necessary for it to

function. Koszegi-Nagy, Z. (2014, March 31).

Water is a necessity for every human being to survive. Water helps the body function properly

by removing waist products, maintaining physical endurance in adults and transports nutrients to

cells. Water is a major component of blood. Water also keeps the body at the correct

temperature.

Expected product – the properties that the product has and that are necessary for the

consumer to think about buying the product. Koszegi-Nagy, Z. (2014, March 31). On average,

calories in beverages make up 20% of the total caloric intake in the typical American diet.

Replacing one sugared beverage per day with water for a year can trim more than 50,000 calories

annually from your diet. Drinking water is a good way to stay hydrated without consuming

calories. Beverage Consumption & Sales. (n.d.). The 5oz Spill proof caps will targeted towards

INTRODUCTION TO MARKETING BUSINESS PLAN 22

the parents whether a family or single parent home. This option appeals to the parents because

water is a healthy alternative to the sugary juices and sodas for the whole family.

Potential product – it is the final product that is available on the market and that the

consumers can buy. This includes all the additional values and augmentations that the company

finally included in the product to differentiate it from the competitors’ products. Koszegi-Nagy,

Z. (2014, March 31).

Natural Spring Granite Filtered Water Bottle Company will offer an assortment of

options for purchase to the consumer. The most recent added is the six pack of 5-ounce children

size waters that all have the spill proof caps. We will also offer the 12 oz. or the 1-liter bottle

with the option of the sport top for adults that can be sold in singles or the cases of 12 and 24. Do

not forget about the 3-gallon and 5 gallon Home Delivery or order for the Home Delivery for

water cooler.

Augmented product – Attributes of the product that can differentiate it from the

competitors’ products and might provide a slight advantage over them for the consumers. These

may include the brand name, the design, the packaging, the overall quality, the additional

functions (apart from the basic features), the installation, the after-sale service, the warranty, the

home delivery, and the possibility to accept credit from the consumers. Koszegi-Nagy, Z. (2014,

March 31).

Our Brands – Natural Spring Bottled Water Co. is a top performer and our significant

investments in our people, facilities, and technology have enabled high-speed manufacturing

practices, high-quality products and a low-cost distribution system. Beverage Consumption &

Sales. (n.d.).

INTRODUCTION TO MARKETING BUSINESS PLAN 23

Recycle - We are committed to recycling in our own operations. We are taking steps to

reduce the amount of materials we use in every phase of our operations — from the plastic we

use in our bottles right down to making sure that we are recycling materials at our in-plant

facilities. Through improvements in our in-plant recycling process, in 2009 we were able to

recycle 95% of the product waste generated at these facilities. In addition, in some of our

administrative offices, we have composting systems in place to also minimize food waste.

Beverage Consumption & Sales. (n.d.).

We are working to get the Extended Producer Responsibility solution to improving

recycling rates, which leads to: Reducing energy and raw materials cost, reducing greenhouse

gas emissions, reducing the impact of bottled water and other packaged goods production, and

creating more jobs. Beverage Consumption & Sales. (n.d.).

Product Life Cycle

Introduction Stage – Need to educate customers regarding the benefits of the product.

Focus on the product rather than the brand. Promotional offers to support the product and build

demand. The pricing strategies, price skimming and price penetration. Argosy University

Classroom. Principles of Marketing (n.d.).

Naturally-mineral rich crystal clear granite filtered spring water is sourced from natural

springs that were made by nature and the water comes from a 40-feet-think to 90-feet-thick clay

and granite layers deep below the ground, protecting it from any man-made pollution. Natural

INTRODUCTION TO MARKETING BUSINESS PLAN 24

Springs granite filtered spring water contains no nitrates; it is naturally free of chemicals. Nicolet

Water Quality: Fresh From The Forest. (2014).

After water is collected at the springs in NH, it undergoes stringent controls to ensure

each drop has been screened for 30x more contaminants than the leading pitcher filter removes.

Our testing standards exceed the standards set by the EPA and the FDA. Poland Spring® 100%

Natural Spring Water (n.d.).

We seal every drop of our natural mineral-rich crystal clear granite filtered spring water

in specially designed bottles that are recyclable, regularly tested for safety, and free of BPA*

(bisphenol-A) Poland Spring® 100% Natural Spring Water. (n.d.).

Introduction Stage Pricing Strategy

Price Skimming involves setting a high price to recover the development costs as soon

as possible. Argosy University Classroom. Principles of Marketing (n.d.).

Price Penetration involves setting a low price to discourage competitors from entering

the market. A low introductory price helps to increase demand for the product allowing the

organization to take advantage of economies of scale. Argosy University Classroom. Principles

of Marketing (n.d.).

Since we are entering a market that has many competitors, already we are going to enter

the market with the best quality brand of water from the best sources and least eco waist for the

lowest price. Not many competitors have the granite filtered spring water as a brand for quality

for the same prices that would be charged for purified or filtered local water resources.

Growth is a period of rapid market acceptance and increasing profits. Armstrong, G., &

Kotler, P. (n.d.). We will continue to market to our family theme with our quality water and spill

INTRODUCTION TO MARKETING BUSINESS PLAN 25

proof caps with the 5oz kids size bottle. In addition, the parents looking to be healthier and stay

fit will need sport bottle caps for the workouts or sports activities.

Maturity is a period of slowdown in sales growth because the product has achieved

acceptance by most potential buyers. Profits level off or decline because of increased marketing

outlays to defend the product against competition. Armstrong, G., & Kotler, P. (n.d.).

This is when we will launch the home delivery side of the business investing in more of

our own distribution channels to delivery water and coolers to people that want our great tasting

water in their home. Offering a promotion for first time customers discounts off cooler prices and

some water free if purchased more than three of the 5-gallon waters each month. This will help

boost sales when the initial launch has started to level out and stop increasing starting the decline

stage.

Decline stage is the decrease in demand and sharp decrease in sales. Marketer needs to

eliminate product or reposition it to extend the life. With the need for water for all human beings

if we can capture just a small percentage of the market, we can make a profit and the product

would not go into the decline stage and last many years.

BCG Model

Here is what was said about the Boston Consulting Group strategies in a journal entry

edited by Crumley, C. R. (2007).

Being number one or number two in business is a necessity.

The prevailing management practices in diversified companies should be scrapped

and replaced with a real portfolio management.

Competitive strength comes from strategic intent along with macroeconomics and

culture.

INTRODUCTION TO MARKETING BUSINESS PLAN 26

Beating the competition is more important than beating the last quarter.

Cash flow is pivotal in determining a business's real rate of return.

Regulation can have a devastating effect on market mechanism

Services Marketing

“External Marketing is the traditional marketing of the Four Ps.” Armstrong, G., &

Kotler, P. (n.d.). “Internal Marketing means that the service firm must orient and motivate its

customer-contact employees and supporting service people to work as a team to provide

customer satisfaction. Marketers must get everyone in the organization to be customer centered.”

Armstrong, G., & Kotler, P. (n.d.).

“Interactive Marketing means that service quality depends heavily on the quality of the

buyer-seller interaction during the service encounter. In product marketing, product quality often

depends little on how the product is obtained. Nevertheless, in services marketing, service

quality depends on both the service deliverer and the quality of the delivery. Service marketers,

therefore, must master interactive marketing skills.” Armstrong, G., & Kotler, P. (n.d.).

Home/Office Delivery

We will need to train quality, knowledgeable, and reliable customer service reps and

delivery drivers by developing a superior physical environment that our product will be

delivered. By using our own distribution system for the Home Delivery portion of our business,

we can design a superior delivery process. . Making sure that our dispatch schedule has extra

time in case one delivery takes longer than expected so the next customer will not be effected by

it. Always have the phones answered by a person and not a recording during business hours will

assist with differentiating our service from our competitors. NONE

INTRODUCTION TO MARKETING BUSINESS PLAN 27

Price Determination and Strategies

Price is the sum of all the values that customers give up in order to gain the benefits of

having or using a product or service. Historically, price has been the major factor affecting buyer

choice. In recent decades, nonprime factors have gained increasing importance. However, price

remains one of the most important elements determining a firm’s market share and profitability.

Home Delivery Pricing - A survey of the surrounding are in New Hampshire shows that the

average price per 5-gallon bottled delivered is $ 6.80. Reference for Business. (1995, April).

Since we are trying to compete in this market with many competitors by giving the quality water

at the lowest price so we are going to charge only $6.00 per 5-gallon delivered bottle water.

Water, bottle, and delivery cost comes to $3.00 per 5-gallon bottle delivered. Charging the

customer $6.00 per 5-gallon delivered bottle generates $3.00 in profit per unit for the company.

A survey in the sourunding area of New Hampshire states that the average price per 3-

gallon delivered bottle of water is $ 2.10 per 3-gallon delivered bottle of water. Reference for

Business. (1995, April). We are going to charge $4.50 per 3-gallon delivered bottle generates

$2.40 in profit per unit for the company.

We are going to purchase coolers at a cost of $302.00 and rent them to the customers for

a fee of 15.00 per month. In just 21 months, each rented cooler will be paid for and generating

profit long-term for the company. Reference for Business. (1995, April).

Supply & Demand

“Building on last year’s growth of 4.7 percent, bottled water will again post significant

increases in both sales and consumption for 2014. Reflecting a clear trend of consumers

increasingly choosing healthy, convenient, zero-calorie bottled water, BMC reported that over

INTRODUCTION TO MARKETING BUSINESS PLAN 28

the past five years alone, bottled water has increased its share of the overall beverage market

from 14.4 percent in 2009, to 17.8 percent in 2014. BMC now predicts that by 2016 bottled

water will be the number one packaged beverage sold in the United States.” Bottled Water.

(2014, December 04).

“Sales of bottled water are expected to enjoy moderate growth over the forecast period.

Off-trade value sales of bottled water are projected to grow by 11% between 2013 and 2018 to

reach US $20.1 billion. Off-trade volume sales of bottled water are also projected to increase by

11% to reach 33.1 billion liters over the same time. The healthful profile of most bottled waters

gives consumers a reason to purchase bottled water over other soft drinks.” Bottled Water.

(2014, December 04).

Gleick, P. (2013, April 25).

Competition

INTRODUCTION TO MARKETING BUSINESS PLAN 29

Private Lable

Dasani Nestle Water

Pure Life

Aquafina Poland Spring

Glaceau Smart Water

Glaceau Vitamin Water

Dear Park Ozarka Fiji0

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

1.8

2 1.9

0.92 0.9 0.86

0.58 0.60.53

0.410.32

0.25

Leading bottled still water brand sales in the U.S., 2014

Name of top 10 companies 2014

U.S.

Bill

ion

Dolla

rs

Beverage Industry Magazine. (2014, January).

Objectives and Strategies

We are going to offer the customer a 30 day free trial of our water coolers to the the

customser use to having the cooler nearby. Once the cooler is in place, most customer fine it

easier to leave the cooler and order more products or water deliveries to keep the water stocked.

After two weeks of the 30-day free trial, we will call customer and provide them with other

incentives to keep the water cooler and commit to a rental agreement. We will call the customer

after the two 5-gallon bottles are mostly emptied and offer the incentive may involve free bottles

of water or a reduced fee for water. Reference for Business. (1995, April).

The cost to deliver and place the cooler is minimal, by comparison to the advantage of

having a customer essentially locked in to having water delivered by the same company that is

renting the cooler to them. Reference for Business. (1995, April).

Natural Spring Granite Filtered Bottled Water Company intends to advertise its free trial

offers by way of website online, coupons, social media, and word of mouth. Most competitors do

not currently invest in advertising, leaving the market wide open. Reference for Business. (1995,

April).

INTRODUCTION TO MARKETING BUSINESS PLAN 30

Place & Promotion

Distribution Channels

“A company’s channel decisions directly affect every other marketing decision. Pricing

depends on whether the company works with national discount chains, uses high-quality

specialty stores, or sells directly to consumers via the Web. The firm’s sales force and

communications decisions depend on how much persuasion, training, motivation, and support its

channel partners need.” Armstrong, G., & Kotler, P. (2011).

Integration of channels offline and online strategies are most preferable for multi-channel

retailing. Other studies find this as an assumption because retailers are choosing a verity of

disparate multi-channel strategies. Müller-Lankenau, C., Wehmeyer, K., & Klein, S. (2006). Given

this variety, we conjecture that there is no single best approach to multi-channel retailing, but

that, depending on the general marketing strategy, different multi-channel strategies can be

suitable for retailers. Müller-Lankenau, C., Wehmeyer, K., & Klein, S. (2006).

Direct and Indirect Marketing

Direct Marketing has no intermediate levels and the company will sell directly to consumers.

Armstrong, G., & Kotler, P. (2011).

Although distributors preferred direct channels, market coverage was also important. This

is because direct channels could act as a barrier. These channels avoided horizontal expansion

and exerted pressure on distributor’s distribution assets and core business specialization. Ouma,

D., Ombui, K., & Kagiri, W. A. (2013).

Indirect Marketing has on or more intermediaries. Armstrong, G., & Kotler, P. (2011).

INTRODUCTION TO MARKETING BUSINESS PLAN 31

Length & Width

Length - The number of intermediary levels indicates the length of a channel. Armstrong,

G., & Kotler, P. (2011).

Width - Width of a channel is equal to the number of options used by a company to

distribute its products. Argosy University Classroom, Principles of Marketing (n.d.).

The Natural Springs Granite filtered water is going to use an indirect marketing channel,

which will include distributors and wholesalers. We are going to have a third party distributor for

our retail side of the campaign to get the water from our bottling facility in New Hampshire to

the retail stores for sale to the consumer.

On the retail side of our water business, we are going to sell our water through drug

stores and grocers stores, for, example Rite Aid, Wall Mart, Safeway, and Save Mart to name a

few. We are also going to include corner markets, liquor stores, and mom and pop stores located

in smaller cities. This is because we have an unlimited supply of water from our granite

mountain in New Hampshire.

For our Home Delivery and Business Delivery service, we are going to use a direct

marketing channel. They will not only be the home delivery to consumers but we can utilize the

distribution to service our vending machines in the area. This will be our own drivers,

deliveryman, trucks, and sells to customers directly with no intermediate company involved.

Vertical & Horizontal Channel Conflict

Vertical Channel Conflict - Conflicts between different levels of the same channel, is

even more common. Armstrong, G., & Kotler, P. (2011). Selecting channels would include

distributors, retailers, franchisees, distribution, and a sales force. Selecting channels also involves

INTRODUCTION TO MARKETING BUSINESS PLAN 32

making decisions about market coverage, vertical systems, multichannel network, strategic

alliances, and a sales force. Ouma, D., Ombui, K., & Kagiri, W. A. (2013).

Horizontal Channel Conflict - Two or more companies at one level join together to

follow a new marketing opportunity. By working together, companies can combine their

financial, production, or marketing resources to accomplish more than any one company could

alone. Armstrong, G., & Kotler, P. (2011). Although distributors preferred direct channels,

market coverage was also important. This is because direct channels could act as a barrier. These

channels avoided horizontal expansion and exerted pressure on distributor’s distribution assets

and core business specialization. Ouma, D., Ombui, K., & Kagiri, W. A. (2013).

Promotion

Communication Process & Tools

“Retailers use any or all of the promotion tools—advertising, personal selling, sales

promotion, public relations, and direct marketing—to reach consumers.” Armstrong, G., &

Kotler, P. (2011).

Our target market is the young family wanting healthier choices for the children and

alternative to the sugar drinks. Also good alternative to tap water that has many bad chemicals

and sewage that was into our water systems.

With every purchase of the a case of 12oz bottles we can promote or coupon a promotion

to get a free 5oz six pack of the spill proof caps to market these for parents with small children

INTRODUCTION TO MARKETING BUSINESS PLAN 33

on the go. We can also offer one time free water container with cap on first purchase of the

bottled 3-gallon and 5-gallon refillable containers if purchased more than three of any

combination of sizes. We will offer these promotions in weekly mailed ads and out our website.

For the Social Media promotion, we can have a promo code for the same promotions

offered in the stores and add additional promotion codes for discounts on products and or free

shipping of products with certain purchases.

The social media ads and television ads are going to be specific towards the quality of our

brand. It will be all about the natural spring water is pure and really comes from the NH springs.

Informing consumers that we are our own company and our core standards are to give the best

prices for the healthiest water on the market.

Advantages with using advertising as the main tool are the ability to get our brand and

name out to a large number of people at low cost. “Communication can be encoded and

delivered via multiple media, like visual and verbal encoding for television and magazines.”

Argosy University Classroom. Principles of Marketing (n.d.). Disadvantages to using advertising

are that the communication mode is indirect and impersonal and is sent to various markets and

not customized to one pacific market. University Classroom. Principles of Marketing (n.d.).

Sales promotions are an advantage because it provides incentives as invitation to

purchase which is highly persuasive. Argosy University Classroom. Principles of Marketing

(n.d.). Disadvantage to sales promotions is the communication is usually indirect and impersonal

and the effect is usually short-term only. Argosy University Classroom. Principles of Marketing

(n.d.).

Product Life Cycle and Pricing/Promotion

INTRODUCTION TO MARKETING BUSINESS PLAN 34

Introduction Stage

Since we are entering a market that has many competitors, already we are going to enter

the market with the best quality brand of water from the best sources and least eco waist for the

lowest price. Not many competitors have the granite filtered spring water as a brand for quality

for the same prices that would be charged for purified or filtered local water resources.

We are going to charge only $6.00 per 5-gallon delivered bottle water. Water, bottle, and

delivery cost comes to $3.00 per 5-gallon bottle delivered. Charging the customer $6.00 per 5-

gallon delivered bottle generates $3.00 in profit per unit for the company. Of course, if needed

in other stages of the life cycle we need more money we could make this promotional offer for

just the first year and then the price can go up one to two dollars more per unit.

We are going to purchase coolers at a cost of $302.00 and rent them to the customers for

a fee of 15.00 per month. In just 21 months, each rented cooler will be paid for and generating

profit long-term for the company. Reference for Business. (1995, April).

Growth Stage

For the Growth Stages we might have to lower prices when competitors come out with

more products like ours for the retail side, which includes our cases of 12oz and 24oz, bottled

water in the 12oz size bottles for only 7.99 per case and out 20oz bottles for only 9.99 per case.

This will keep us at an advantage of the competition during the growth stage.

Maturity Stage

Maturity Stage we will already be a house hold name for the great taste and healthy

benefits of our water. We would not need any promotions or coupons at this time most

consumers are familiar with Granite filtered Water quality and willing to pay for the excellent

INTRODUCTION TO MARKETING BUSINESS PLAN 35

taste. It will be the new trend and with our prices, no one will be able to compete so we will still

be making profits.

Decline Stage

Decline stage is not going to happen with bottled water because it is every persons need

to consumer water. Without tab water, getting worse every day more people will be paying for

good natural water. We might see that the market will level off but we will never have to close

up shop this company should be around forever if we market the product correctly.

Promotional Strategies

Push is going to be our first strategy using the promotions that we discussed we are

hoping that the demand for our water will be so high that consumers will ask for it because of

our coupons and promotional offers during the introductory stage.

The last methods we are using will the fear factor. Giving all of the bad things in Tap

water and the fact that you cannot take out all of the pesticides, chemicals, and much more from

municipal sources of water, this will make customers think they need to have the best water for

their body. This will force the product with the other incentives we have like money back

guarantee if do not like water once tasted when purchasing the single 12oz or 20oz bottles. We

will also match any competitors prices if found lower than ours did if you bring in the

advertisement to show us. Last for the Home Delivery we can do a 30 day trial money back

guarantee if decide after 30 days you think our product is not what you desire in your home for

any reason.

INTRODUCTION TO MARKETING BUSINESS PLAN 36

Personal Selling & Global Markets

Promotion Mix

Advertising

The Natural Springs Granite Filtered Water Bottle Company does recognize the different

media options available to use for the marketing plan. For example, TV, magazines, internet,

radio, newspapers, billboards or banners. Marketing department has chosen the following media

outlets for this campaign.

Television is the first media we choose and is going to be the most expensive. We are

going to run commercials for our ads during NFL football games on Thursdays nights. Thursday

night games are televised but have less people watching on TV for the cost is less expensive and

we still reach the million customers that may be watching the game. These potential customers

are used to being in the sports type of atmosphere and or could be athletes themselves so being

hydrated is important to this targeted market.

Internet is the second media we choose. We will have an extensive website built for our

B2C & B2B customers to enjoy all of the promotions that we will list for online purchases. It

will give the back ground about where are water comes from and a comparison against municipal

water sources in regards to how healthy and safe our product is with our guarantees. It will also

show how economical we are with our production of the water and how safe are bottles that we

put our water into are and the impact of our bottling facility would have on the environment. We

will also have hours listed to do an online chat on the website so a customer service rep can

answer all questions in real time as the customer is shopping through our products, especially

with the B2C customer that want to start the Home Delivery including water cooler rental with

us.

INTRODUCTION TO MARKETING BUSINESS PLAN 37

Website/Survey will offer a promo code for a coupon for after completing the survey so

we can get some feedback about our adds so far and make adjustments where needed for future

changes in the campaign.

Social Media / Internet Surfers – we will have a few employees designated to

advertising our water on the social networking sites, blogs, and any internet type of exposure we

can get our brand out to the public.

Billboard advertisement is the last option. The billboards are going to be next to other

advertisements for casinos, which will ensure more people will see our ads since the people

driving the route to casino, every day will also see our billboard adds.

Personal Selling

“Personal selling consists of interpersonal interactions with customers and prospects to make

sales and maintain customer relationships.” Armstrong, G., & Kotler, P. (2011).

Sales Cycle overview from the Argosy University Classroom, Principles of Marketing (n.d.).

Prospecting and Qualifying – A salesperson would use the prospecting and qualifying

stage to follow leads or prospects to identifying potential customers based on several different

categories like, volume of business, location, financial ability, growth rate, and product usage.

Pre-approach – Salesman will use this step as the market research stage where they will

learn as much as possible about the customer before his first approach.

Approach – Meeting between salesperson and buyer. Always want to make a good first

impression to get the relationship off to a good start.

Presentation & Demonstration – Salesman will pitch the product that is for sale

showing all of the applications and benefits of the product to the buyer, handling any objections,

clarifying customer anxieties.

INTRODUCTION TO MARKETING BUSINESS PLAN 38

Closure – Review any specifications of product and proposal that was offered, and

finally buyer for an order.

Follow up – To ensure that buyer is satisfied with the product one delivered, make a

phone call to the buyer to confirm happy with the purchase, which can ensure repeat business.

Due to the overwhelming cost and the small amount of customers that personal selling

reaches the Natural Spring Granite Filtered Spring Water Bottle Company is not going to have

any outside salesperson. We will have of course our highly trained and educated customer

service team for assistance with ordering online, product questions, stock availability, and Home

Delivery Coordinators etc.

Sales Promotion

The first sales promotion we are going to do is being a sponsor for one of the NASCAR

teams. NASCAR has the most people that attend every race for a single function and they are

always televised for more viewers to see our brand on TV. We will have the driver drinking our

product after the races and show how important it is to stay hydrated while racing. During a two-

or three-hour race, a driver can lose up to 10 pounds of water so drivers have nutritionists who

help drivers during races make sure they hydrate with the correct fluids. Moltke, D. (2013,

August 3).

Another sales promotion is to collaborate with the Granite State Race Services. They

keep track of all the bookkeeping for over 200 different races a year that we will sponsor. The

races will use our water to sell at the races for the spectators and the runners in the race. We will

be featured on the ads for these races in the surrounding areas of the races from Mount Desert

INTRODUCTION TO MARKETING BUSINESS PLAN 39

Island, Me to St. John, Virgin Islands. This will let our brand get exposure for the quality and

value we offer in our water. Teschek, B. (n.d.).

Direct Marketing

We are going to keep a database of all the emails from customers that completed our

survey online out our water and we will then send out as many possible email blasts to each

individual customer with our promotional new offers once they are available.

We are also going to take the list of runners from the marathons and send a personalized

email blast with special promo code for our website for all the runners families witch is

exclusive to runners in the marathon only. We will also then send out the same promotion to

them by mail so they will see the ad for this promotion twice to make sure they got the coupon

and seen the add.

Public Relations

Public Relations are going to be intertwined into the Marathon races that we are

sponsoring. We are going to have the 20th Year anniversary of the biggest race of the year in

Bristol New Hampshire. This is scheduled at the end of Jan. 2015 about one month after our first

test run of our product launch in retail stores just after Christmas 2014. We are going to have an

educational card or pamphlet that will be passed out with all of the company information,

product knowledge, coupon on the card also, etc.

Brand Management

Branding Strategies

Social media falls under the umbrella of promotion, advertising, and public relations.

Any organization can use social media to strategically communicate key factors regarding brand

INTRODUCTION TO MARKETING BUSINESS PLAN 40

associations, evaluate consumer preferences, and adopt content to meet the relationship-

marketing goals. Wallace-McRee, L. (2012).

To cultivate brand awareness, brand image, brand associations, agenda setting and

framing social media has the potential to be used as a communication tool that shapes the

perceptions of the public by increasing exposure through generating contact and displaying the

media information in favorable way. Wallace-McRee, L. (2012).

Emotional Branding

“Researchers say full emotional attachment is common to about 25% of consumers and

emotionally attached consumers purchase substantially more than regular customers, which frees

companies from having to rely on promotions and discounts to keep them buying the brand.

Emotional branding creates lifelong bonds.” (2012).

“On the flip side however, while advertisers are eager to create emotional attachments

between consumers and their goods, we've found forming these deep feelings can be a difficult

task." Emotional branding creates lifelong bonds. (2012).

Brand Extension

“It is commonly agreed that brand extension is a marketing strategy enabling a firm

producing a product with a well-defined image to use the same brand name in a different product

category.” Venkatesh, R, MBA, P. (2013).

“There is the advantage of increased awareness among consumers of the brand name and

greater profitability from offerings in more than one product category but the success of this

brand extension depends on how strongly the consumers regard the brand's values and goals.”

Venkatesh, R,MBA, P. (2013).

INTRODUCTION TO MARKETING BUSINESS PLAN 41

Natural Spring Granite Filtered Spring Water Bottle Company is not going to tie its name to

any other current product or brand. We are going to make our company a brand that people can

refer to as the wholesome brand that always has the great healthy tasting water.

Global Markets

Opportunities & Challenges

The global bottled water market has seen a remarkable and continued annual growth in

the past 15 years. For consumers seeking health and wellbeing, bottled water is an alternate to

the traditional soft drinks. The media attention on the growing obesity problem in the West,

particularly in the European and North American populations, the links made between it and the

increased consumption of soft drinks by children has reinforced the growth of bottled water.

GLOBAL BOTTLED WATER MARKETleading countries’ consumption and compound Annual growth rates 2006 – 2011

2011 Millions of Gallons CAGR*Rank Countries 2006 2011 2006/11

1 United States 8,225.0 9,107.3 2.0%2 China 4,163.3 7,686.4 13.0%3 Mexico 5,359.9 7,520.7 7.0%4 Brazil 3,301.6 4,500.9 6.4%5 Indonesia 2,155.9 3,760.6 11.8%6 Thailand 1,426.2 3,118.8 16.9%7 Italy 3,115.5 3,034.7 -0.5%8 Germany 2,808.9 2,954.2 1.0%9 France 1,524.0 2,291.0 0.0%

10 Spain 1,524.0 1,514.8 -0.1% Top 10 Subtotal 34,395.6 45,489.3 5.8% All Others 12,606.8 15,880.7 4.7% World Totals 47,002.4 5.5%

* compound annual growth rateBeverage Marketing corporation (2012)

Retrieved from http://www.bottledwater.org/files/2011BWstats.pdf

INTRODUCTION TO MARKETING BUSINESS PLAN 42

Linebac, N., & Gritzner, M. L. (31, October 31).

Opportunities and Challenges in the global market

Opportunities

Growth in urbanization and population

Increasing level of health awareness

Bottle water is a rapidly growing

Competitive market segments

Rise in income and consumption

Challenges

Spurious brands have flooded the bottle water market

INTRODUCTION TO MARKETING BUSINESS PLAN 43

Low penetration in rural markets

Possible threat from litigation and public campaigns

Brand and category differentiation

Increasing use of water purifiers.

Natural Springs Bottle Water Company is going to choose to adapted global marketing

strategy because the same product cannot be marketed in the same way from one culture to the

next. Other reasons for the change in the market strategies would be Demographic

Characteristics, Geographic Factors, Sociocultural Factors, Economic Factors, and

Political/Legal Factors. Because of all these factors, we are going to Adapt Global Marketing.

Which is an international marketing strategy for adjusting market strategy and mix of elements to

each internal target market, bearing more costs but hoping for a larger market share and return.

Armstrong, G., & Kotler, P. (2011). We will also try to collaborate up with a company in these

foreign markets to set up some Joint Venturing, which means to enter foreign markets by joining

with foreign companies to produce or market a product or service.

INTRODUCTION TO MARKETING BUSINESS PLAN 44

REFERENCES

Part 1

Armstrong, G. & Kotler, P. (2009). Argosy University MARKETING: An Introduction, 9e. Retrieved from http://digitalbookshelf.argosy.edu/#/books /9780558021122/ pages/48398847

Kumar, N. (2004-06). Analysis of Marketing Strategy of Mineral Water Industry. Retreived from http://www.slideshare.net/ajmerasahil/packaged-drinking-wa?related=1

De Melo, J. (2012), November 20). Bottled Water Case 2006. Retrieved from http://www.slidesshare.net/juliedemelo7/bottled-water-case-2006

International Water Bottled Association (IBWA). (2014). Bottled Water Markets. Retrieved from http://www.bottledwater.org/economics/bottled-water-market

Part 2

Argosy University Classroom. Principles of Marketing (n.d.). Unit 2 Module 2, Retrieved November 28, 2014, from http://myeclassonline.com/

International Water Bottled Association (IBWA). (2014). Bottled Water Markets. Retrieved from http://www.bottledwater.org/economics/bottled-water-market

International Water Bottled Association (IBWA). (2014). Bottled Water. Retrieved from http://www.bottledwater.org/economics/real-cost-of-bottled-water

Gleick, P. (2013, April 25). Bottled Water Sales: The Shocking Reality. Retreived from http://scienceblogs.com/significantfigures/index.php/2013/04/25/bottled-water-sales-the-shocking-reality/

Bottled Water Industry: Home and Office Delivery. (n.d.). Retrieved November 30, 2014, from http://www.bottledwater.org/economics/bottled-water-industry

Chart References

Gleick, P. (2013, April 25). Bottled Water Sales: The Shocking Reality. Retreived from http://scienceblogs.com/significantfigures/index.php/2013/04/25/bottled-water-sales-the-shocking-reality/

US Census Bureau. (2014, August). Value of U.S. product shipments of bottled water from 2002 to 2012 (in billion U.S. dollars) [Chart]. In Statista. Retrieved from http://www.statista.com/statistics/187287/us-bottled-water-product-shipment-value-since-2002/

Beverage Industry Magazine. (2014, July). Sales of the leading 10 bottled still water brands of the United States in 2014 (in billion U.S. dollars) [Chart]. In Statista. Retrieved from

INTRODUCTION TO MARKETING BUSINESS PLAN 45

http://www.statista.com/statistics/188312/top-bottled-still-water-brands-in-the-united-states

Beverage Industry Magazine. (2014, January). Share of bottled water sales in the United States in 2012, by distribution channel [Chart]. In Statista. Retrieved from http://www.statista.com/statistics/252387/share-of-us-bottled-water-sales-by-distribution-channel/

Part 3

Armstrong, G., & Kotler, P. (2011). Chapter 7 Products, Services, and Brands Customers Value. In Marketing: An introduction (9th ed., p. 200). Boston: Prentice Hall.

Raab, M. (2010, November 13). Product levels. Retrieved from http://maryraab.wordpress.com/2010/11/13/product-levels

Koszegi-Nagy, Z. (2014, March 31). Marketing all around us - The five levels of the product. Retrieved from http://zsobig.hubpages.com/hub/Marketing-all-around-us-The-five-levels-of-the-product

Beverage Consumption & Sales. (n.d.). Retrieved December 4, 2014, from http://www.nestle-watersna.com/en/about-nestle-waters/industry-overview/beverage-consumption-sales

Nicolet Water Quality: Fresh From The Forest. (2014). Retrieved from http://www.nicoletwater.com/water-quality/

Poland Spring® 100% Natural Spring Water. (n.d.). Retrieved December 5, 2014, from http://www.polandspring.com/#/assured/our_quality

Argosy University Classroom. Principles of Marketing (n.d.). Unit 3 Module 3, Retrieved December 5, 2004 from http://myeclassonline.com/

Armstrong, G., & Kotler, P. (n.d.). Argosy University: Chapter 8 New Product Development and Product Life Cycle Strategies. Retrieved December 5, 2014, from https://digitalbookshelf.argosy.edu/#/books/9780558021122/pages/48399594

Crumley, C. R. (2007). The boston consulting group on strategy. Journal of Applied Management and Entrepreneurship, 12(4), 91-93. Retrieved from http://search.proquest.com/docview/203899936?accountid=34899

Bottled Water. (2014, December 04). Retrieved from http://www.bottledwater.org/bottled-water-sales-and-consumption-projected-increase-2014-expected-be-number-one-packaged-drink

Reference for Business. (1995, April). Retrieved from http://www.referenceforbusiness.com/business-plans/Business-Plans-Volume-04/Bottled-Water-Manufacturer.html

Chart References

INTRODUCTION TO MARKETING BUSINESS PLAN 46

Gleick, P. (2013, April 25). Bottled Water Sales: The Shocking Reality. Retreived from http://scienceblogs.com/significantfigures/index.php/2013/04/25/bottled-water-sales-the-shocking-reality/

Beverage Industry Magazine. (2014, July). Sales of the leading 10 bottled still water brands of the United States in 2014 (in billion U.S. dollars) [Chart]. In Statista. Retrieved from http://www.statista.com/statistics/188312/top-bottled-still-water-brands-in-the-united-states

Part 4

Armstrong, G., & Kotler, P. (2011). CHAPTER 10 Marketing Channels: Delivering Customer Value. Marketing: An introduction (9th ed., p. 294). Boston: Prentice Hall.

Argosy University Classroom. Principles of Marketing (n.d.). Unit 4, Module 4, Retrieved December 5, 2004 from http://myeclassonline.com/

Ouma, D., Ombui, K., & Kagiri, W. A. (2013). Efficiency in the kenyan purified bottled water industry: A channel intensity strategy.  International Journal of Business and Social Science, 4(3) Retrieved from http://search.proquest.com/docview/1321484316?accountid=34899

Müller-Lankenau, C., Wehmeyer, K., & Klein, S. (2006). Strategic channel alignment: An analysis of the configuration of physical and virtual marketing channels.  Information Systems and eBusiness Management, 4(2), 187-216. doi:http://dx.doi.org/10.1007/s10257-005-0031-4

Part 5

Armstrong, G., & Kotler, P. (2011). CHAPTER 13 Communicating Customer Value: Personal Selling and Sales Promotion. Marketing: An introduction (9th ed., p. 385). Boston: Prentice Hall.

Argosy University Classroom. Principles of Marketing (n.d.). Unit 5, Module 5, Retrieved December 5, 2004 from http://myeclassonline.com/

Moltke, D. (2013, August 3). Hydration for Race Car Drivers. Retrieved from http://www.stack.com/2013/08/03/race-car-nutrition/

Teschek, B. (n.d.). Granite State Race Services. Retrieved December 17, 2014, from http://www.gsrs.com/index.php

Wallace-McRee, L. (2012). Professional sport and facebook: A content analysis of branding, marketing, and communication strategies in the national football league (Order No. 3550858). Available from ProQuest Dissertations & Theses Full Text; ProQuest Dissertations & Theses Global. (1316886671). Retrieved from http://search.proquest.com/docview/1316886671?accountid=34899

INTRODUCTION TO MARKETING BUSINESS PLAN 47

Emotional branding creates lifelong bonds. (2012). B & T Weekly, Retrieved from http://search.proquest.com/docview/1220528449?accountid=34899

Venkatesh, R,MBA, P. (2013). BRANDING AND BRAND EXTENSION STRATEGIES.  International Journal of Marketing and Technology, 3(4), 49-57. Retrieved from http://search.proquest.com/docview/1412868136?accountid=34899

Netscribes Inc. (2013, September 13). Market Research Report : Bottled water market in india 2013. Retrieved from http://www.slideshare.net/ResearchOnIndia/market-research-report-bottled-water-market-in-india-2013?qid=53ca6313-49c6-4528-9195-f834eb36a174&v=default&b=&from_search=4

Linebac, N., & Gritzner, M. L. (31, October 31). Maps101 - BOTTLED WATER'S TRUE COSTS. Retrieved from http://demo.maps101.com/index.php?option=com_flexicontent&view=items&id=565%3Abottled-waters-true-costs

Armstrong, G., & Kotler, P. (2011). CHAPTER 15 Global Marketing, Marketing: An introduction (9th ed., p. 385). Boston: Prentic