Introduction
Due to the demand of the pure water, a research carried a group students have come up with a natural drinking mineral water that will meet many Australian population demands. Our water will be called Thirstier. Thirstier will be introduced in the market for both office and home consumption.
The charges of the product will vary according to the size of the bottle as from $1.5 per one liter bottle. From the research, thirstier drinking water will rapidly established itself in the major Australian towns as well as in the rural areas. Thirstier will be produced under local retail channels to enable all people in Australia to access the product.
Product Description
Thirstier bottle water is sourced from crystal clear springs and pristine glaciers from untapped forests with absolute purity and natural ingredients. Apart from this, the water manufacturing will be carried out under careful scientific scrutiny that results into clean purified bottled water with the natural taste.
Our water will be distributed across our retail shops for further product channeling into the small shops in the villages. Our logistics will allow equitable mineral water accessibility to all our customers in prices as well as geographical accessibility. Our brand name across Australia will remain thirstier mineral water. Our product is aimed at satisfying our customers’ needs with quality and at affordable price.
Australian Market Analysis
Information taken from different Geographical Survey Information (GSI) and other marketing sources has shown that the consumption of mineral water across the country is growing annually at a 10 percent rate. This translates to an increase of one hundred thousand potential customers in every million people who consume mineral water annually.
However, this is never the real picture in the market as the influences of substitute products also play a lot in market demand (Saperstings 47). We expect an annual expansion of fifteen percent in the market with a profit margin compound of 120 percent interest.
Market size
Through the GIS information, trade association, customer surveys and financial data from market operators we gathered our estimate size is to cover 20 million customers in Australia. This figure, however, marks our baseline and we expect to serve above two hundred and fifty million in five years. Past trends show that we will be able to get more customers under aggressive product promotion.
Growth Rate
Mineral water Companies in Australia have shown a sigmoid growth curve in for the past years. This is based on several internal and external factors of in market influencing this market. The changes in consumers’ taste and economic are the major players in the growth of mineral water market. The current economical stability in australia also is a sign higher marketing of highland water.
From the graph, we expect low market at the introduction of thirstier in Australian market. Mostly this will be result from low competitive power of our product and customers conception. After introduction in the market, our product will start developing strong segmentations and customer retentions. Through our quality strategies and promotional system we expect to have a climbing graph through customers’ attraction and retention up to maturity (Saperstings 91).
Market challenges
Thirstier will meet several challenges in the market. Introducing our products into the market is the most eminent challenge. This is because Australian market has strong competitors such as Acquifers, Zech and other soft drinks. Launching thirstier into Australian market will require huge capital for setting its retail outlets and promotions. Finally, managing supply chain in large areas is also an expected challenge with our product (Chernev 112).
Market Profitability
Our decision to venture into Australian market was guided by the profitability nature of this market. We applied Michael Porter forces form to determine the profitability of this market. The factors under the analysis were the buyers and suppliers powers, threats from substitute products, entry barriers and competitors strength. From our research we noticed a positive profiting gap in marketing mineral water than any other product (Porter 152).
Industrial Cost Structure
With the application of Porters Value chain we realized that with proper implementation we can develop competitive advantage and hold a big market share the consideration that were analyzed include (Porter 119):
- Inbound Logistics Margin
- Operations Margin
- Outbound Logistics Margin
- Marketing and Sales Margin
- Services Margin
From this research we projected a cost benefit analysis of our operation over a five years period. As well, we are able to device competitive strategies in positioning ourselves in this market.
Distribution Channel
Thirstier mineral water will have an efficient distribution channel. We will have both direct and indirect distribution channel. Main Stores will be established in the major cities where our retailers will collect the product. Direct delivery will also be created upon customers and retailers request but limited to some quantity. The success of the delivery system, however, will depend on competency of the workforce in developing delivery and supplying strategies (Chernev 101).
From the pyramid, Australia number of energetic working population is higher than that of children and older people. As a result a lot of income is generated by the working class that makes purchasing power to go very. The population is composed of more males than female majorly at youthful age, which will make consumption of thirstier mineral water to be very high.
The consumption rate of our product is also going to be increased following people preferences for natural mineral water in smaller portable bottles. The climatic condition of Australia, additionally will promote consumption of thirstier mineral water especially during summer. Australians lifestyle will be an added advantage for our product (Saperstings 117).
Trends of mineral water consumptions in areas such as wedding and clubs, is also increasing. Since most of our consumers are actively working people, leisure consumption of thirstier is expected to be high over Fridays and weekends. However, this is associated with the youth rather than the older generation (Chernev 118).
Environmental Scan
To develop a viable plan for thirstier, we took a refined research on our internal and external operating environment. This was vital in demonstrating the success of our product in the market. Our environment scanning was carried out using both the PESTEL and SWOT analytical tools.
Action plan for marketing thirstier also was developed using this tool. The tool was useful in giving a whole examination and scanning of thirstier market in Australia.
SWOT analysis was then applied after the PESTELI to fill the necessary gaps (Porter 97).
The information above was carried out with application of inventory procedures that included budgeting data and trends on economic and demographic market data (Porter 66).
From the above analysis we identified the following;
Strengths
- Thirstier Mineral Water has a lot of strengths in this market
- As a follower strategy we expect to benefit from the 4p’s failures of the pioneers
- There exist favorable governmental policies and regulations
- Highland has good skilled labour and potential market researches
- Our management system is very efficient in production
- Customer accessibility of our products both geographically and in price is very efficient
- We have supportive societal values in our operations
Weaknesses
- As a follower marketer we are entering into a highly competitive market
- Maintaining international trading offer a lot of challenges i.e. in coordinating communication system
- Raw material delivery challenges since we rely on outsourcing
- Management challenges especially with ever changing technological system
- Customer retention issues as a result of competition
- Economic trends which affect purchasing power in the market
- Unfavorable international trading policies.
Thirstier Client Benefits
Our clients have a lot of benefits on our products since they are produced under rigorous scientifically tests and quality assurance the most outstanding benefits in consumption of Highland’s thirstier includes;
- Affordable prices
- Quality products
- The natural taste of our water
- Our consistent match to meet customers’ expectations and satisfaction through inquiries
- Accessibility in most stores especially in Australia
- Delivery efficiencies to purchasers
The study shows that thirstier drinking water will rapidly established itself in the major Australian towns as well as in the rural areas. Thirstier will be produced under local retail channels to enable all people in Australia to access the product.
Works Cited
Chernev, Alexander. Strategic Marketing Management, Toronto: Bright Star Media, 2009. Print
Saperstings, Husting. Improve Your Marketing to Grow Your Business: Insights and Innovations that Drive Business and Brand Growth, New Jersey: FT Press, 2010. Print.
Porter, Michael. Competitive Advantage: Creating and Sustaining Superior Performance: With a new Introduction, New York: Simon and Schuster, 1998. Print