Vitaman Water

Marketing Plan For LAUNCH OF

Vitamin Water in Pakistan

MISSION STATEMENT

To establish itself as a health water supplier targeting sports, thrill seeking community and also

for those adults, for whom, vitamin intake becomes a necessity with a span of age or due to

some illness. To establish itself as a health water supplier for young generation & for adults with

vitamin as a daily source of energy

Executive Summary

Purpose of this project is to study the opportunities in Pakistani market for “Vitamin Water”.

Vitamin Water is a world renowned brand. Marketed by a well organized multinational

company which operates almost all over the globe. This is the first effort in Pakistan to market

this product.

Vitamin Water is recognized as a leading health water provider, facing direct competition from

Carbonated Beverages and bottled water. Vitamin Water will position itself in the same

category

An analysis of the soft dink industry was also conducted in Pakistan and world wide also. Global

consumption of soft drinks is rising by 5% a year.

Table of Contents

Titles Page #

1. Introduction 01

2. Mission and vision statement 01

3. Facts about company 02

4. Pepsi in Pakistan 04

5. Product in spot light 09

6. Market analysis of soft drink 10

7. Pakistani soft drink industry 13

8. Industrial SWOT analysis 14

9. External Environmental factors 16

10. Internal Environmental factors 21

11. Pre-marketing Mix 25

12. Marketing Mix strategies 27

13. Conclusion 39

14. Suggestions 40

OBJECTIVE

Vitamin Water by one of the world’s famous brand Glacéau in Flavored or Unflavored water is

being introduced in Pakistan as a health water to increase the market share of bottle water, to

increase the Vitamin intake within the sports, thrill seeking community and also for those

adults, for whom, vitamin intake becomes a necessity. Vitamin water is already available in

many countries of the world, thus entering into a new market like Pakistan would be another

accomplishment by the company and should continue the pace at which the company has

grown.

The reason for introducing this water is to enhance and to enrich the available product line in

Mineral or chemically treated Water in Pakistan. Pakistan already has a lot companies that have

established themselves as a premium quality suppliers of Mineral or chemically treated water.

The concept and need of having clean water aroused when people realized the profusion of

contaminated water available for everyday use while drinking, cooking, etc. This caused lots of

health disruptions especially among the young children.

We are devising a marketing plan for the product that is being introduced in Pakistan for the

first time and is targeted mainly for sports person, youngsters & for patients seeking vitamin

intake in daily diet.

Company History

1996, in New York city, an adventurer, gadabout and humble genius named J. Darius

Bikoff was suffering the one-two punch of raging thirst and low energy. En route to a

yoga class, Bikoff was feeling run-down so he gobbled a vitamin c wafer and chased it

with a swig of water. The combination of the flavor and nourishment inspired Bikoff to

develop Glacéau Vitaminwater®, an enhanced hydration beverage that’s packed with

the nutrients you need throughout the day. Bikoff’s vision gave birth to the enhanced

hydration category, changing the beverage industry forever. The great tasting, nutrient-

enhanced format of Glacéau Vitaminwater® has gained the appeal of consumers who

like something a little different from usual.

Glacéau Vitaminwater® first launched in New York in 2000 and is now hydrating thirsty

people in cities around the world including Los Angeles, London, Paris, Sydney, Mexico

city, toronto, seoul and tokyo! Celebrities, rock stars, fashionistas and other people

drink Glacéau Vitamin Water® because it’s a great-tasting way to get some of the

essential nutrients and vitamins we all need each day. Glacéau Vitaminwater® can be

incorporated into any lifestyle, is a great complement to everyone's less-than-perfect

diet and can help feeling good throughout the 24-hr schedule.

What is Vitamin Water

Vitamin Water is much more than just flavor and refreshment. It works for more responsible

hydration. It is great-tasting, nutrient-packed, an enhanced water with added electrolytes. In

addition to providing a perfect complement to everyone’s less-than-perfect diet, each vitamin-

water variety has a unique combination of nutrients to deliver a specific benefit to get you

through your day. A recently completed clinical study proved what we have known all along:

the vitamins in vitamin-water power-c (dragon fruit) are absorbed by the body equally as well

as those in traditional foods.

Vitamin Water Zero is the perfect low-calorie combination. It is only 10 calories per serving,

naturally sweetened and tastes amazing. It is also packed with vitamin and nutrients you need

throughout the day. Glacéau has leveraged the very best of nature and science to create a

blend of natural sweeteners and nutrients that will forever change the low calorie category.

Glacéau products are specially formulated to help people on the go feel better, perform better

and live healthier lives through better hydration as such, we are proud to partner with athletes,

artists, actors and other individuals who embody the ideal of good health and wellness and who

genuinely incorporate Glacéau products into their healthy lifestyles.

Glacéau continues to lead the industry in innovation with natural, low and zero calorie

beverages, distributed nationwide. The company has experienced triple digit growth for five

straight years and according to industry reports, it is poised to become one of the biggest

brands in the history of beverages.

Some of Glacéau’s partners include 50 cents, Jennifer Aniston, Tom Brady, Shaquille O’Neal,

Tony Parker, Brian Urlacher, David Ortiz and Tracy Mcgrady.

Glacéau products are designed to help people feel better, perform better and live healthier

lives through better hydration, we are proud to partner with athletes, artists, actors and other

individuals who embody the ideal of good health and wellness and who genuinely incorporate

Glacéau products into their healthy lifestyles.

Company Slogan:

“Try it”

“What does your body need?”

“Goodbye to bland water-hello to flavors + vitamins | drink Glacéau Vitamin-water” “Think of Glacéau vitamin water whenever you think of style”

Target Markets

Age: 15 to 40 years

Gender: Male/Female

SEC: A+, A, B

Geographical Location: Top 10 cities

Packaging

Plastic Bottles

500ml

Labeling

Sticker containing ingredients

On the other side USP is defined

Product Variants

The long-awaited Glacéau VVVVitamin itamin itamin itamin water will bring colorful surprises to Pakistanis…. the 500ml bottle will be available in the following six glacéau vitaminvitaminvitaminvitaminwater varieties

o Glacéau vivivivitamintamintamintaminwater® powerpowerpowerpower----c c c c – dragonfruit (c + b’s)

o Glacéau vitaminvitaminvitaminvitaminwater® essentialessentialessentialessential – orange-orange (c + calcium)

o Glacéau vitaminvitaminvitaminvitaminwater® energyenergyenergyenergy – tropical citrus (b +guarana)

o Glacéau vitaminvitaminvitaminvitaminwater® resresresres––––qqqq – green tea (c + green tea extract)

o Glacéau vitaminvitaminvitaminvitaminwater® resresresrestoretoretoretore – fruit punch (b + electrolytes)

Reason To Believe (RTB)

VitaminWater is not just a product, it’s a complete life style.

• Flavored water or beverage, less calories or No calorie water

• Beneficial for health than other beverages

• Great tasting & flavored healthy water

Our products are designed to help people live an active life by adopting a healthier lifestyle. Our

unique product range and the investment we have done in the research and development of

the innovations in portfolio give us an edge over our competitors.

Purchase Decision

The purchase of this product is impulse. 90% of the decisions are made at the outlet level. The

target market looks for convenience. They want this product to be chilled. The product needs to

be very clean.

Segmentation

A segmentation approach is aimed to selectively target niche market. This consists of

celebrities, sportsmen, health conscious adults etc.

It is more targeted towards young generation looking for colors and a life style, along with

health conscious people. It is mainly targeted for people with monthly net income, more than

100,000 PKR who are always willing to pay extra to get added benefit of this product. This

product is targeted more in metropolitan cities where people are looking for energy, trill and

fun.

The target consumers for VitaminWater are people “who want something healthier than the

stuff they’ve been drinking to meet their needs throughout the day.”

� Sportsmen, celebrities & health conscious adults are using this

product

� Lust for energy and health

� Product in hand reflects a particular, healthier lifestyle

� Since our product is a substitute of water, it can be used be any

where any time.

� Product can be used through the available single serve 200 ml

bottle or can be used through 1000 ml multi-serve bottle.

Positioning

For those people who are health conscious, trendy & contemporary in their approach towards

daily life, Vitamin Water is a unique, safe, health and convenient way to revitalize themselves

with available in different variants.

• New Flavored Drinking Water with Safety and Security

• Pure Water Pure Relationship

• Safe and Healthy Flavored Drinking Water

Attitudes

The young generation looks for colors and a life style, along with health conscious peopleThese

people are ready to given extra bucks for any product that satisfies their need. This product is

targeted more in metropolitan cities where people are looking for energy, trill and fun.

The target consumers for Vitamin Water are people “who want something healthier than the

stuff they’ve been drinking to meet their needs throughout the day.”

Current Products

Vitaminwater does not have any direct competition since there is no product with such

properties available in Pakistan.

Current Target Market

All teens and > 40 years of both genders having SEC A +, and A, living in Metro towns of Karachi,

Lahore, and Islamabad.

Current Distributor Network

Distribution would be specifically aimed at availability and visibility standards at all Self Service

Stores, Big Grocery stores, and International Chain Accounts. Distribution through passive

channel i.e., wholesalers would be very thin.

Current Competitors

Although there is no direct completion of Vitaminwater in Pakistan but being a beverage it will

be having competition with available energy drinks (Red Bull & Sting), Carbonated beverages

(Pepsi, Coke, etc) and offcourse the bottled water or the mineral water

Pricing

o Retail Price:

o Trade Price & Discount:

o Distributor Invoice Price & Discount:

o Launch Trade Support

Launch TO of 12 + 1 would be offered on both the SKUs

Distribution

o In terms of distribution special focus would be given to the availability of product at

Modern Trade outlets, Big Grocery stores, and International Chain Accounts. Wholesale

distribution would be patchy. Convenience stores are another channel to be targeted

for the availability.

o Special focus would be making the product available at HoReCa and other Foodservice

accounts.

o Distributors’ orders will be placed twice in a week. The outlets will be served thrice

weekly through proper Order Booking system

o Types of channels used

� Direct - Via sales force

o Level of market coverage

� Exclusive - Restricted availability only on Key Accounts.

o Outlets handling product

� Groceries

� Top 50 Groceries

� Defense, Clifton, Tariq Road & Bahadurabad

o Perceived product positioning

� It is a premium product.

o Distribution costs

� We will use 2 key accounts salesman for distribution of Vitamin water.

Breakup is as under:

• Salesman @ Rs.10,000/month = Rs. 20,000/month

• Sales Van @ Rs. 15,000/month = Rs. 30,000/month

Promotion

o Promotion through ATL targeting the young segment mainly through channels like Geo,

ARY, Geo Sports, Ten Sports, etc.

o Hoardings will be placed specifically in the SEC A+ and A areas throughout the 3 Metro

towns.

o Product will be made available at discounted prices in health clubs like Shapes and

Hotels’ gymnasiums like Avari Gym etc., and also at various clubs.

Media Mix

TVC

Shop

Board

s

LMT

&

IMT

PR

Suppo

rt

Print

Appt.

Activi

ty

Cooki

ng

Shows

Radio

Bill

board

Trade

Push

Banne

rs

Camp

POS

TV

Suppo

rt

Vitamin Vitamin Vitamin Vitamin

WaterWaterWaterWater

Communication Strategy

� Slogan to be finalized based on Brand Positioning

� All communication content and design to be based on Brand Positioning and Target

Market

� Decision regarding communication channels and timings to be based on Target Market

TV Support

� TVC Advertising

� Day Brandings

� Island Breaks

� Break Bumpers

� Scrolls

� Logo

� Linkings

� Fixed Spots Placement

Channel Strategy

Satellite Channels to include

– GEO News and Entertainment

– ARY Digital and One world

– Hum TV

– Dawn News

– Express

– Duniya

– Samaa

Terrestrial Channels to include

– PTV

– ATV

Local Cable Channels to include

– Star Plus

– In house Movie Channels

We will focus on;

– High Viewer ship Programs

– High Viewer ship days

– Heavy frequency

TV support through cable

� Objectives

– To create awareness about the Launch

– To create hype

� Mechanics

– Ads will be placed on all local cable channels operating in the particular zone.

Channels would include

• Star Plus

• In house movie channels

Radio Support

Strategy for Radio

� Utilize high listenership stations with heavy frequency. Radio Stations to include

− FM 89

− FM 100

− FM 105

− FM 91

− FM 106.2

− FM 99

− FM 107

Print Support

� Strategy for Print

– Placement Strategy

• Creative Insertions

– Focus will be on

• All major News Papers

• Selective Magazines

• Center spreads etc

POS at Retail

� Shops will be stormed with

– Posters

– Buntings

– Mobiles

– Shop Banners

– Shelf talkers

Outdoor Support

� Strategy for Outdoor

– IMPACT should be the word for this medium, therefore large format billboard on

size 60x20 and 90x30 will be used.

– Strong presence with strategic locations will be rented for a period of one month

mainly focusing in Strata 1 & 2 towns.

City Pole Banners Support

� This is a high impact media to supplement the overall outdoor campaign.

� Pole banners will only be planned for Karachi and Lahore.

� The campaign duration will be 7 days.

� Only main roads catering to traffic entering from different routes.

� Banner size will be 7x3 ft installed in a frame.

Inflatable Balloons

� 2 Inflatable balloons will be placed one in Karachi and one in Lahore at high traffic

locations.

Public Relations

� Press conferences would be held in Karachi & Lahore through which huge PR coverage

would take place regarding the announcement of this Launch in all the major news

papers as well as TV channels of Pakistan.

Shop Boards

� Shop Boards all over Pakistan will be installed to support the overall promotional

strategy

Promotional Budget

Total Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb

1 Media Production Cost 7,000,000 7,000,000

2 Television Airing 66,000,000 35,000,000 5,000,000 4,000,000 4,000,000 4,000,000 4,000,000 4,000,000 3,000,000 3,000,000

3 Radio Airing 4,000,000 2,000,000 2,000,000

4 Print Advertising 27,000,000 5,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000

6 Billboards/Banners/Backlit Vans 1,500,000 1,500,000

7 Replica on Wheels/Foot 1,000,000 1,000,000

106,500,000 7,000,000 44,500,000 6,000,000 6,000,000 8,000,000 5,000,000

8 Launch Event 2,500,000 2,500,000

9 POS Material; Sales Uniform 6,000,000 1,500,000 500,000 1,000,000 500,000 2,000,000 500,000

10 Merchandising Activity 6,500,000 1,000,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000

11 Distributor Van Branding 1,000,000 1,000,000

12 LMT Visibility; Project Trojan 18,000,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000

13 Store Intercept; Pick & Win 4,000,000 1,000,000 1,000,000 1,000,000 1,000,000

14 Key Accounts listing & Activities 8,000,000 2,000,000 500,000 1,000,000 500,000 1,000,000 500,000 500,000 500,000 1,000,000 500,000

15 Ladies Cooking Shows (7 cities) 6,000,000 1,500,000 1,500,000 1,500,000 1,500,000

16 Branded Bill Books and Pens 400,000 200,000 200,000

17 Trade Schemes 2,000,000 500,000 500,000 500,000 500,000

18 DSR and TSE Incentive 2,000,000 500,000 500,000 500,000 500,000

19 Shop Boards 4,000,000 1,000,000 1,000,000 1,000,000 1,000,000

20 Appartment Activities 4,000,000 1,000,000 1,000,000 1,000,000 1,000,000

21 Wholesale Engagement 4,000,000 1,000,000 1,000,000 1,000,000 1,000,000

68,400,000 16,200,000 9,500,000 3,500,000 8,200,000 4,000,000 4,500,000 8,000,000

174,900,000 7,000,000 60,700,000 9,500,000 9,500,000 6,000,000 8,200,000 4,000,000 12,500,000 8,000,000 5,000,000

Total Below the Line

Grand Total

Total Above the Line

Above the Line

Below the Line

Financials

FOB Price / Bottle $ 0.80

(One Container hold upto 9600 bottles with 12 bottles / carton packing)

1% Federal Excise Duty $ 0.01

35% Import Duty $ 0.28

17% Sales Tax $ 0.14

5% Income Tax $ 0.04

Container Charges / bottle (FOB NY, $2200 / 40Ft) $ 0.23

Shipping Line Expense $ 0.03

Port Charges $ 0.04

Excise Duty = Invoice Value * 0.80% $ 0.006

Clearance = Invoice Value * 3% $ 0.024

$ 1.59

Less Sales and Income Tax Refund $ 0.18

Landed Duty Paid, In House Cost / bottle $ 1.42

Margin

Distributor Margin

125gm 4.00%

Retailer Margin

125gm 9.09%

Volume

Launch Volume 15,096 Kg

KPD (15 Days) 1,006

Split

55% from “PET & B” Shops

37% from Wholesale

6% from “A” Shops

2% from “A+” Shops