INTERNATIONAL MARKETING INTERNATIONAL MARKETING FOR BOTTLED WATER IN INDIA FOR BOTTLED WATER IN INDIA Presented by: Ayyaz Mahmood Presented by: Ayyaz Mahmood Faraz Ahmad Faraz Ahmad M Ali Malik M Ali Malik M Nabeel Ismail M Nabeel Ismail H. Nisar-ul-Mustfa H. Nisar-ul-Mustfa Shoaib Maqsood Shoaib Maqsood
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INTERNATIONAL MARKETINGINTERNATIONAL MARKETING FOR BOTTLED WATER IN INDIAFOR BOTTLED WATER IN INDIA
Presented by: Ayyaz Mahmood Presented by: Ayyaz Mahmood Faraz AhmadFaraz Ahmad M Ali Malik M Ali Malik M Nabeel Ismail M Nabeel Ismail H. Nisar-ul-MustfaH. Nisar-ul-Mustfa Shoaib MaqsoodShoaib Maqsood
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2008 projected profit $40 millions (8.5%)2008 projected profit $40 millions (8.5%)
Total bottled water market growth is 7%Total bottled water market growth is 7%
Operation in European / Middle East MarketOperation in European / Middle East Market
Current Target Market ( INDIA)Current Target Market ( INDIA)
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DEVELOPMENT OF MARKETING STRATEGY DEVELOPMENT OF MARKETING STRATEGY OF PACKAGED WATEROF PACKAGED WATER
MARKETING OBJECTIVESMARKETING OBJECTIVES
Developing marketing strategy to enter into world’s fastest growing Developing marketing strategy to enter into world’s fastest growing Indian bottled water market and establishing brand image and Indian bottled water market and establishing brand image and product quality, efficiently and profitably. product quality, efficiently and profitably.
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INTRODUCTION OF INDIAN MARKETINTRODUCTION OF INDIAN MARKET
Globalisation trend in IndiaGlobalisation trend in India
Market opportunities: 40% growth annually in water marketMarket opportunities: 40% growth annually in water market
Water quality needs in IndiaWater quality needs in India
Only 4% of the world water resourcesOnly 4% of the world water resources
Total annual consumption has risen:Total annual consumption has risen:
- 1.5 billion litres to 5 billion litres between 1990-2004- 1.5 billion litres to 5 billion litres between 1990-2004
By Dr. Uday –lal-pai, investor ideas.com,posted Aug-07-06 By Dr. Uday –lal-pai, investor ideas.com,posted Aug-07-06
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EXTERNAL ANALYSIS (PEST)EXTERNAL ANALYSIS (PEST)
POLITICALPOLITICAL
Democratic governmentDemocratic government
Stable and liberalStable and liberal
Asian Bottle Water Association (ABWA)Asian Bottle Water Association (ABWA)
The Bureau of Indian Standards (BIS)The Bureau of Indian Standards (BIS)
World trade organisation (WTO)World trade organisation (WTO)
16% excise duty16% excise duty
To be reduced by 10% moreTo be reduced by 10% more
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EXTERNAL FACTORS CONT..EXTERNAL FACTORS CONT..
ECONOMICECONOMIC
Mixed economyMixed economy$4.02 trillion GDP$4.02 trillion GDP8% annual GDP growth8% annual GDP growthPackaged water consumption growth-10%-12% annuallyPackaged water consumption growth-10%-12% annuallyConsumption of beverages food and tobacco is 40%Consumption of beverages food and tobacco is 40%Cheap laborsCheap laborsGrowth of disposable income by 8.5%Growth of disposable income by 8.5%Annual growth of departmental stores by 24%Annual growth of departmental stores by 24%
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EXTERNAL ANALYSIS CONT..EXTERNAL ANALYSIS CONT..
SOCIALSOCIAL
Safe drinking packaged waterSafe drinking packaged water
High levels of literacy and awarenessHigh levels of literacy and awareness
Environmental issueEnvironmental issue
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EXTERNAL ANALYSIS CONT..EXTERNAL ANALYSIS CONT..
TECHNICALTECHNICAL
High investment on Information technologyHigh investment on Information technology
Water storage improvementWater storage improvement
Membrane technology and clean environmental technologyMembrane technology and clean environmental technology
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Little control over the Little control over the licensee’s operationlicensee’s operation
Firm gives up profitFirm gives up profit
Little knowledge about Little knowledge about the micro and macro the micro and macro environmental factorsenvironmental factors
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JOINT VENTUREJOINT VENTURE
ADVANTAGESADVANTAGES
Greater control over the Greater control over the marketmarketMaximum utilisation of Maximum utilisation of partner’s networkpartner’s networkBetter understanding of Better understanding of cultural requirementscultural requirementsEase of entry in establishing Ease of entry in establishing local marketlocal marketEase of business set upEase of business set upGain access to Tax Free Zone Gain access to Tax Free Zone (if within the target market)(if within the target market)
DISADVANTAGESDISADVANTAGES
Potential disagreement Potential disagreement between the partnersbetween the partnersGreat capital riskGreat capital riskProfit have to be sharedProfit have to be shared
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ACQUISITION ACQUISITION
ADVANTAGESADVANTAGES
Complete control over Complete control over operationsoperations
All profits remains with the All profits remains with the companycompany
Adapt product for local Adapt product for local requirementsrequirements
- Superior American quality brand- Superior American quality brand
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REFERENCESREFERENCES
Dr. Uday –lal-pai, investor ideas.com,posted Aug-07-06Dr. Uday –lal-pai, investor ideas.com,posted Aug-07-06[ 2] report; boom time ahead for bottled water market in India (ronita, torcato, [ 2] report; boom time ahead for bottled water market in India (ronita, torcato, mombai)mombai)[3] Bureau of India[3] Bureau of India[4,5] Predicted by Dr. Manmohan Krishna, in the scenario (boom time ahead for [4,5] Predicted by Dr. Manmohan Krishna, in the scenario (boom time ahead for packaged water) the Goa -based CEO of Glenmon Distillers & Vinttners (who has packaged water) the Goa -based CEO of Glenmon Distillers & Vinttners (who has worked for MNC and India’s ‘No1 and No2 Alcoholic and beverage companiesworked for MNC and India’s ‘No1 and No2 Alcoholic and beverage companiesWWW.EVIAN.CO.UK WWW.EVIAN.CO.UK Who (WORLD HEALTH ORGANIZATION)Who (WORLD HEALTH ORGANIZATION)Marketing Management & strategy by Peter Doyle.Marketing Management & strategy by Peter Doyle.Strategic Marketing Management (Planning, Implementation, Control) by RICHARD Strategic Marketing Management (Planning, Implementation, Control) by RICHARD M.SWILSONAND COLLIN GILLIGAN WITH DAVID J. PEARSON.M.SWILSONAND COLLIN GILLIGAN WITH DAVID J. PEARSON.WWW. DANONE GROUP.COMWWW. DANONE GROUP.COMErik Peterson ( resource analyst)Erik Peterson ( resource analyst)Spring (hydro-sphere) from (vikipedia), the free encyclopaediaSpring (hydro-sphere) from (vikipedia), the free encyclopaedia
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