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 Vitamin water will bring colorful surprises to Pakistanis…. the

500ml bottle will be available in the following six glacéau vitaminwater

vitamin varieties

o Glacéau vitamin
vitaminwater®
tamin power-c – dragonfruit (c + b’s)
power-

o Glacéau vitaminwater®
vitamin essential – orange-orange (c + calcium)

o Glacéau vitaminwater®
vitamin energy – tropical citrus (b +guarana)

o Glacéau vitaminwater®
vitamin res–q – green tea (c + green tea extract)
res–
 o Glacéau vitaminwater®
vitamin restore – fruit punch (b + electrolytes)
restore

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
TV
TVC Suppo POS
rt

Shop Banne
Board rs
s Camp

LMT Trade
& Push
Vitamin
IMT Water

PR Bill
Suppo board
rt

Print Radio

Appt. Cooki
Activi ng
ty Shows
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
Above the Line
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

Total Above the Line 106,500,000 7,000,000 44,500,000 6,000,000 6,000,000 8,000,000 5,000,000
Below the Line
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

Total Below the Line 68,400,000 16,200,000 9,500,000 3,500,000 8,200,000 4,000,000 4,500,000 8,000,000

Grand Total 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
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