Introduction
The need for natural drinking mineral water caused the need for research.
Students came up with ‘Thirstier’ that would be for office and home use.
Product is packaged in different bottle sizes and costs vary with size.
It will be produced in the retail channels to increase availability of the product.
Due to the demand of the pure water, a group of students carried out research to come up with a natural drinking mineral water to meet Australian population demands.
It will be called Thirstier and will cost from $1.5 a bottle depending on its size.
Product description
Source of water is from crystal clear springs and pristine glaciers.
Scientific scrutiny will be carried out to ensure purity of the water.
Distribution through retail shops will ensure accessibility to all potential customers.
Thirstier mineral water is affordable and of high quality.
Water will be sourced from the untapped forests with pure water. These will include the crystal clear springs and pristine glaciers. The water will also be cleaned using scientifically proven methods. It will be distributed to the retail shops and other smaller shops. The prices will ensure that it is affordable to the population.
Australian market analysis
GSI and other marketing sources show an annual growth of 10% in the consumption of mineral water in the country.
However, there are various substitutes that influence demand for the product.
Annual expansion of 15% is expected with increase in profit margin compound.
Market Size
The market size is estimated at 20 million Australians.
The initial number of customers to be served within the first five years.
It is possible to get more customers with aggressive product promotion.
Information taken from different Geographical Survey Information (GSI) and other marketing sources show that consumption of mineral water is growing countrywide by 10%. This translates to an increase of 100,000 potential customers. Substitutes of the products may negatively influence the demand of the products.
Through the use of GIS information, trade association, customer surveys and financial data, it has been estimated that about 20 million Australians will be reached. The baseline is between two hundred and fifty million in five years. However, the market size is expected to increase.
Growth Rate
Generally, a sigmoid curve represents the type of growth in Mineral Water companies in Australia.
Factors influencing this market include the internal and external factors.
Changes in consumer’s taste and their economic stability are greatly influencing the growth in the industry.
Thirstier Mineral Water is expected to be low during its introduction but later capture the attention of customers and cause their attraction and retention.
Thirstier is expected to follow the sigmoid growth curve just like any other Australian Mineral Company. Certain internal and external factors are expected to influence the business. These include the changes in customer taste and the state of the economy.
Market challenges
Introduction of the product into the market is the first challenge.
Financial implications of launching Thirstier (huge capital).
Managing supply chain in large areas may be challenging.
Market Profitability
The Australian market has been determined to be profitable using the Porter’s Forces.
From the research, marketing mineral water has been determined to be the most profitable.
Several challenges are expected in this initiative:
- Introduction of the product into the market is the first challenge.
- Financial implications of launching Thirstier (huge capital).
- Managing supply chain in large areas may be challenging.
Industrial cost structure
Competitive advantage over the others could be achieved through several ways:
- Inbound Logistics Margin.
- Operations Margin.
- Outbound Logistics Margin.
- Marketing and sales Margin.
- Service Margin.
Distribution Channel
Direct and indirect distribution channels to be used:
- Main stores to serve the retailers.
- Direct delivery upon request.
Competent workforce in delivery and supplying strategies will be required.
Thirstier Mineral Water will have an efficient distribution channel including both direct and indirect distribution channels.
Main stores will be established in major cities where retailers will collect the product. Direct delivery will be conducted upon customer or retailer request.
Success of the delivery system will depend on the competency of workforce in developing delivery and supplying strategies.
Environmental Scan
The decision to venture into the market was due to the fact that it is profitable.
This conclusion was arrived at after applying Michael Porter’s Forces. These include the buyers’ and suppliers’ powers, threats from substitute products, entry barriers and competitor strength.
Population structure of Australia (more younger males) and the packaging of the product (small portable bottles) implies a greater consumption and preference of the product.
Climatic conditions in Australia also favor its consumption.
Current trends in the society also favor its consumption.
Environmental Scan
PESTEL and SWOT analysis were used.
Action plan for marketing Thirstier was also developed.
SWOT analysis used after PESTEL to fill gaps.
Strength and weaknesses were evaluated after application of budgeting data and economic and demographic data.
Both PESTEL and SWOT analysis were used. Action plan for marketing Thirstier was also developed. SWOT analysis used after PESTEL to fill gaps. Strength and weaknesses were evaluated after application of budgeting data and economic and demographic data.
Strengths
- Expected to benefit from 4p’s failures of pioneers.
- Favourable governmental policies and regulations.
- Skilled labour and potential market researches.
- Efficient management system.
- Supportive societal values.
Weaknesses
- Entering into a highly competitive market.
- Challenges in maintaining international trading.
- Challenges in sourcing of raw materials.
- Management challenges due to technological changes.
- Issues in customer retention.
- Purchasing power affected due to economic trends.
- Unfavourable international trading policies.
Thirstier Client Benefits
Due to the use of rigorous scientifically tested procedures, products are of high quality and customers benefit in the following ways:
- Affordable prices.
- Quality products.
- The natural taste is preserved.
- Customer expectation and satisfaction ensured through inquiries.
- Accessibility in most stores.
- Efficient delivery to purchasers.
It can be concluded that Thirstier drinking water will rapidly establish itself in Australia’s major towns and become the preferred choice of mineral water.
The clients will have a lot of benefits since the products have undergone proper treatment using scientifically tested methods. The benefits will include the following:
- Affordability of the products.
- Quality products.
- The natural taste is preserved.
- Customer expectation and satisfaction ensured through inquiries.
- Accessibility in most stores.
- Efficient delivery to purchasers.
