Final Project on Aquafina by pepsi Pakistan

No.	CONTENTS	Page #
1	DEDICATION	2
2	ACKNOWLEDGEMENT	3
3	AQUAFINA	4
4	EXECTIVE SUMMARY	5
5	ISO CERTIFICATIONS	6
6	HISTRO & LAUNCHING INFO.	7
7	COMPANY LOGO	8
888 8	VISION & MISSION STATEMENTS	9
9	PEPSICO VALUES	10
10	CORE PRODUCT	11
11	HYDRO-7 PURIFICATION	12
12	PURIFICATION PROCESS	13
13	SWOT ANALYSIS	14
14	SWOT EXPLANATION	15
15	STRENGTHS	16
16	WEEKNESSES & OPPERTUNITIES	17
17	THREATS	18
18	MARKETING STRATEGIES	19
19	PRODUCT STRATEGIES	20
20	PRODUCT STRATEGIES	21
21	PRODUCT STRATEGIES	22
22	PRICE STRATEGIES	23
23	PRICE STRATEGIES	24
24	PROMOTION STRATEGIES	25
25	PROMOTION STRATEGIES	26
26	PROMOTION STRATEGIES	27
27	PLACEMENT STRATEGIES	28
28	PLACEMENT STRATEGIES	29
29	PLACEMENT STRATEGIES	30
30	RECOMMENDATIONS	31

“THIS REPORT IS DEDICATED TO ALL BUSINESS STUDENTS AND MY RESPECTED TEACHER”

We like to dedicate this report to all business students who want to become great business professionals and want to be on the height of the “BUSINESS WORLD “. We hope that they would be satisfied from our task and that would help them in their future life.

We at this point shall not forget the fruitful efforts of our teacher Prof. SHEHZAD ALAM without whom we would have been unable to accomplish this.

We are very thankful to Allah Almighty who has given us the power and ability to think and judge the maters and then to make use of the blessed abilities. Our most respectable teacher Prof. SHEHZAD ALAM is the only source who directed us to apply our abilities in the required direction.

First of all we went to the company and gathered the information from there and then we started analyzing about the current situation of AQUAFINA. During this process of analyzing the product we came across some problems and some advantages prevailing in the company.

As AQUAFINA is newly launched in Pakistan so its history is not too long. AQUAFINA has taken huge step by entering in the market where a strong competitor in mineral water was holding the market.

We are doing this project because we are interested in studying the new entrants of the market and their current problems.

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

AQUAFINA is purified non preserved water. It has a PH scale of 7 which is standard taste of water being used in Pakistan. It has ISO 9000, 9002, 14000 certified.

AQUAFINA is a product of PepsiCo. It was launched in America in 1988. It is the top bottled water in America. After doing a good business in the other countries of the world it has recently been launched in Pakistan. That is why its history is too shirt.

It was launched in Pakistan on NOV 19, 2005. It was first launched in Lahore and adjoining areas of Lahore like Qasur, Gujranawala etc. It will be launched in further areas in future.

To be a leading house of FMCG product and service with local dominance & global Prominence.

Pledges to serve its customers with the highest level of integrity and diversity in Product and services at affordable price.

It's true. Water is good for you. The more you drink the better you feel. And since AQUAFINA'S seven-step HydRO-7 purification system removes substances most other bottled waters leave in, you get pure water and perfect taste every time. So make your body happy. Drink more water!

AQUAFINA is purified water, it originates from the public water sources, sever step purification process called HydRO-7. this is the state of the art process that removes things like chloride, salts and other substances that can affect a water’s taste.

Every bottle of AQUAFINA is produced at one of our water purification centers through the hydro-7 process. That’s how you know you are getting pure water and consistent taste every time you open an AQUAFINA. Anytime, anywhere

Since our state of the art HydRO-7 purification system removes substances most other bottled water leave in, you get pure water and perfect taste every time. So, make your body happy with these shapes and sizes.

The SWOT Analysis is an extremely useful tool for understanding and decision making for all situations in an organization. It provides a good frame work for reviewing strategy, position and direction of a company.

As far as AQUAFINA is concerned, there are also strengths, weaknesses, opportunities and threats.

Strengths are company’s positive points which help the company to attain the strong position in the market which provide the company opportunities to offer a better company than its competitors.

Every company have some weaknesses because no one is perfect in this world, as far as AQUAFINA is concerned, it also has some weaknesses.

The company must use best strengths to take advantage of attractive opportunities in the environment.

ü More products of the same category can be introduced in order to target more and more customers

ü Product demand may increase due to changes in Demographics and Psychographics

As the brand name of AQUAFINA from PEPSI is itself a differential advantage of the product so it needs nothing else to convert the consumer interest into sales of the product. The Pepsi Co. never compromise on its produce standards, and the quality is taken as the core value for company’s product. Quality is never compromised in the Pepsi Co. for their products.

The company has introduced the flavored water in abroad but not yet in Pakistan, Company has its intention to introduce the new flavored water in Pakistan, and the company is working in this regard as it needs a good market for the flavored water because people are hesitant to buy such water in Pakistan. And this also needs a good marketing.

Expiry of the bottled water is judged by the quality assurance department of the AQUAFINA. The expired water is disposed off properly because the expiry is printed on the label of the plastic bottle.

In the making stage of the AQUAFINA, the water is properly boiled and sterilized on the state of the art plants, and then some minerals and health nutrition are added in this to make it healthy and pure enough and free from germs drinking water.

The minimum time is advised to complete a single bottle to follow the economy of state. The time required to complete a single pack of AQUAFINA is approximately 20 seconds.

Some measures are taken to maintain the quality of the product AQUAFINA, as it is kept in factory for 24 hours before dispatching it to the market to avoid any complaints from the consumer. So it’s necessary to keep the fresh stock in factory for safer marketing.

The quality inspection teams not only check the ready water from the factory and from the stores but also from the market as they don’t want the supply of unhealthy water to the consumer as it destroys their credibility.

The brand name is itself a bigger advertisement for the AQUAFINA, as its backed by the strong brand PEPSI CO. the name AQUAFINA has two parts. AQUA means WATER and FINA is derived from the word FINE. That means FINA WATER.

The label of the bottled water is so attractive that it’s made of very fine colors, and packing material used in this bottle is also very safe as its closure is made of plastic, and its closure is wrapped by another plastic seal which protects the germs to enter into the bottle. Also the Blue Fine color wrapper is placed on the bottle to make it attractive enough for the consumer.

The AQUAFINA compares its price with Nestlé PURE WATER as they have good market place in the country, Nestle are the strong competitors of the AQUAFINA, so the AQUAFINA sets its price according to the market situation and also the price is based on the activity of its strong competitor Nestle. AQUAFINA does not compare its price with COCA COLA’s KINLEY as the have not as much market share as the Nestle or AQUAFINA itself has.

AQUAFINA try to match with the Nestlé’s price strategies, as AQUAFINA lower downs its price if the Nestlé is going down in its pricing techniques and vice versa.

Target market of AQUAFINA is off course the urban areas as in rural areas no one is interested to drink the bottled water as they think that they have canals and tube wells to suck their own clean and clear water beneath the surface of land. So the marketing in rural areas is almost 10% as compared to the urban areas. In urban

areas also the marketing is limited to some major cities like Lahore, Karachi, Islamabad, Faisalabad, Gujranwala, and Peshawar.

AQUAFINA has a separate department for its price setting, who oversees the all the market trends, take its report through the marketing department to know the market trends. They set a unit price for the convenience of the consumer for the bottled water as people don’t like to give the scattered money like coins to the market.

Offering low prices to the consumer for their product is one of the price strategies of the AQUAFINA WATER. They try their best to offer the comparatively low prices than offered by other companies in the market to enhance the market share.

AQUAFINA has no intentions to increase the prices of their bottled water in the near future even it would be a top of the mind product in future.

AQUAFINA has its separate department for the marketing activities, as it sees the and experience the market, conduct market survey, takes feedback from the people, prints brochures for the people at roads, give samples to people free of cost, takes public opinions through door to door survey, get informed by public interest through mailing and try to adopt every possible action through which it gets the maximum information about the consumer trends.

The AQUAFINA the name of quality keeps the balance between consumer related and sales related techniques, as AQUAFINA know the expected consequences of unnecessary heavy promotions, because it may increase their cost of product. So it does promotional activities only to that extent at which the customer remains satisfied and the product’s cost remains at certain bearable level. So the balance between these two techniques is most important.

AQUAFINA plays an important roll in sponsoring the events in educational institutes like schools, universities and other institutions. Also it conducts its own programs and event, cultural shows, television backhand promotions, sponsors cricket matches and other games, give a necessary contribution to the event held by other organizers. Such promotional activities are at the top of the advertisement techniques.

As it is really a pure, safe and healthy drinking water, and has no bad effects on body, so the promotional statement is also related to its reality i.e. “PURITY GUARANTEED”

Both the print and electronic media is used for the AQUAFINA’S promotions. All the advertisements are run on the televisions. Also they advertise on the web. Although these promotions can increase their cost but good strategic decisions keep the balance between cost and promotions.

Obviously like any other company, the AQUAFINA also bear some limits in its promotional budgets, in the initial stages when the AQUAFINA was launched in Pakistan, heavy promotions were required, because when the company launches a new product it has to spend more on its promotional activities to make the consumer more familiar with the product in comparison with others. So the same was happened with AQUAFINA and the excessive rates were adjusted in the other brands of PepsiCo. And now also the AQUAFINA has its yearly budget for promotional activities.

The main distributors of AQUAFINA are the Riaz Bottlers Lahore, they are providing the full time services to the Lahore and surroundings by distributing the AQUAFINA water.

There are more than 150 outlets of AQUAFINA in Lahore, qusoor and Gujranwala which are providing the bottled water to the consumer for drinking purpose.

If the stock which is returned to the Riaz bottlers by the small distributor is expired then the complete stock is spoiled but if the stockiest of this bottled water refuses to sale the water on the basis of low sales in a particular area then the company dose not hesitate to accept the sales return because the company does not want its retailers and small distributors to be annoyed.

The company retains its whole fresh stock in the premises of the production plant for 24 hours to avoid any complaints after distribution to the retailers. And the maximum time to retain the bottled water in factory is 3 to 4 weeks, all the stock is distributed in Lahore and surroundings within this time frame.

AQUAFINA is supplying its product in major cities of Pakistan like faislabad, Karachi, gujranwala, Lahore, and Peshawar and is aiming to make its distribution more intensive to the other cities of the country by introducing it as safe and healthy drinking water.

AQUAFINA is possessing 135 heavy vehicles for its distribution to the respective areas mentioned above. Through them they are taking the full time advantage of heavy distribution.

AQUAFINA has its own distribution setup that’s why they don’t have to spend more on the outer distribution. And they take their product to the areas of sales very economically.

• The company should introduce 20 liters pet bottles and should also provide the home delivery

• The price of the above mentioned package should be lower as compared to those which are available

• As AQUAFINA has been given good response so AQUAFINA juices should also be introduced in the market in summers

• The company should make public aware of the features available in the product by mentioning it in the commercials

• They should place refrigerators of AQUAFINA in the outlets for marketing purpose.