Marketing Plan for Standard

Water Filter Company.

Course: Marketing Management (MKT 521)

Date of Submission: 4th December, 2009.

Submitted To:
Dr. Belayet Hossain
Professor, Department of Marketing
University of Dhaka.

Accomplished By:
Md. Ehsanul Haque
ID No.: 40713052
EMBA, 13th Batch
Department of Marketing
University of Dhaka
Preamble

This Marketing Plan is prepared as the “Term Paper” for the course “Marketing
Management (MKT 521)”. There was no lack of effort from my part to make study an
impeccable and significant one.

I would like to pay gratitude to our honorable course teacher Dr. Belayet Hossain,
Professor, Department of Marketing, University of Dhaka, for giving me the opportunity
and required guideline to pursue such an interesting analysis. A special thanks to all of my
classmates for the inspiration, suggestion and help they provided throughout the process.

This Marketing Plan is for ‘Standard Water Filter (SWF) Company’, a newly established
company having its head office at House # 364, Road # 27, New DOHS, Mohakhali
(Phone: 8813786-7, Email: swfc@bangla.net). The company is a newcomer in the Home
Water Filter market of Bangladesh. It imports some components of water filters from
China and Korea (especially ceramic filter, cartridge filter and magnetic tap) and
manufactures rest of the components locally. Then the assembled product comes out from
the production facility located at Konabari, Gazipur.

……………………..............
Md. Ehsanul Haque
ID No.: 40713052
EMBA, 13th Batch
Department of Marketing
University of Dhaka
Marketing Plan for Standard
Water Filter (SWF) Company.

Executive Summary
The Standard Water Filter (SWF)
Company is preparing to launch a new
brand of Home Water Filter named
‘SWF’. The current market of domestic
water filter in Bangladesh is growing at a
steady rate. Because of unhygienic and
contaminated water supply, many area of
the country especially the urban area is developing as an attractive market for low price
and small water filters.

Although SWF is a newcomer in this market which is already occupied by strong

competitors like Miyako, Delcol etc., it still can compete because of its unique
combination of features (exterior design and color, flexibility in capacity, warranty) at an
affordable price. Initially we are targeting mostly the consumer market by taking the
opportunity of demand for low price and attractive looking water filters. When the
company will become strong enough financially, we will go for the business market more
rapidly.

The primary marketing objective is to achieve first-year Bangladeshi market share of 5

percent with unit sales of 10,000. The primary financial objective is to achieve first-year
sales revenues of TK 10,000,000, keep first year losses to less than TK 10,00,000 and
break even early in the second year.

Table of Contents

Topic Page No.

Executive Summary 1
Current Market Situation 3
 Target Market 4
SWOT Analysis 5
Objectives and Issues 6
Marketing Strategy 7
Marketing Research 9
Action Program 9
Budget 9
Controls 9

Current Marketing Situation

The scarcity of the pure and hygienic water supply is increasing in our country day by day.
In urban areas water supply authorities (WASA, Municipalities) are continuously failing
to supply clean water. In rural area iron and other types of contaminants are being found
with tube well and pond water. In this circumstance there is a good demand for home
water filters in our country. At present the overall market demand is about 200000 water
filters per year and the market growth rate is more than 10%.

Currently more than fifty water filter companies are running business in Bangladesh.
However all the firms do not ensure high quality product at a reasonable price. They give
no warranty period for their product. Out of these companies “Miyako” is the market
leader. The next are “Eva” “Delcol” and “Nova”.

Target Market
Because of lack of financial strength, initially SWF concentrating mostly on consumer
markets. But some segments of Business market are also in our target.
Targeted Segment Customer Need Corresponding
Feature/Benefit
Higher Income Urban Customers Attractive and Unique Colorful and uniquely shaped
(Consumer Market) Outlook. exterior design.
Middle Income Urban Customers Warranty and Good 1 year replacement warranty
(Consumer Market) Outlook. and smart outlook.
Lower Income Urban Customers Low Price Filter price as low as TK. 790
(Consumer Market) only.
Rural Customers Higher Capacity and Flexibility in water
 (Consumer Market) Good Outlook. containing capacity.
Small Business Organizations High Capacity. Water containing capacity as
(Business Market) high as 38 liter.

SWOT Analysis
Strengths

Unique Features: Our products are unique in design, color and outlook. It gives a smart
look when place in a suitable corner of a home.
High Quality: The quality of our product is very good. The body plastic is made up of
reinforced plastic which will keep the water free from all types of smell. The five steps of
filtering shades are first in Bangladesh and these are incorporated in dice.
Replacement Warranty: We are giving 1 year’s replacement warranty from date of
selling, where competitor brands have no such offering.
Price: We are the most price competitive in the market.

Weaknesses
Later Entrance: SWF enter to market with new products newly. Competitors like Eva,
Nova made a strong position in the market and advantage of first entrance.
Brand Image: Miyako has a strong brand image about their products and they are the
market leader which SWF hasn’t. The SWF brand is not yet to be familiar.
Weak Distributors Channels: It will take time to make strapping distribution channels to
whole country. Miyako has a strong position in that case and they have mass distribution
channels.

Opportunities

Increasing Consciousness of People about Pure Water: People are getting more and
more conscious about the purity of drinking water. They prefer filtered water rather than
contemporary boiled water. So they are more likely to buy water filter.
Increased Sell in rural areas: The rural people are also becoming aware of filtered water.
This segment can be an attractive sales opportunity for our filter.

Threats

Availability of Low Quality Low Priced Filter: There are different types of low quality
filters are available in market and they are very cheap. So a portion of unaware customer is
buying these filters.

Objectives and Issues

SFC has set aggressive but achievable objectives for the first and second year of market
entry.

First-year Objectives
In the first-year we are aiming to win 5 percent market share in Bangladesh by a total unit
sales of 10,000. This will bring first-year sales revenues of TK 10,000,000 and we will
keep first year losses to less than TK 10,00,000.

Second-year Objectives
We are preparing to achieve 8% market share in the second-year. This will bring break-
even for us in the first quarter of the second year.
Issues
The issue regarding implementation of our marketing plan is the highly competitive
situation in the exiting market. Besides as a newcomer we are stating with a weak
distribution channel which may make us vulnerable. So we need to invest heavily to
develop a strong supply chain and good brand image.

Marketing Strategy
The Marketing Strategy of SWF is based on product differentiation. Currently huge
amount of water filters of different brands are available in the market. But they are simple
and almost similar in outlook. Also there is lack of flexibility in water containing capacity.
But we found there is a good demand for impressive looking home water filters which can
add aesthetic appeal to the home interior. Also customers want flexibility in water
containing capacity.

Positioning
Using product differentiation we want to introduce the SWF as a unique and versatile
home water filter brand. We believe we can create a reliable position in consumer market
of water filter.
Product Strategy
Considering the market demand SWF offers both simple and decorative exterior water
filters. Also there is a huge flexibility in water containing capacity ranging from 9 liters to
38 liters. All of out product contain our brand name ‘SWF’.

Pricing Strategy
Since SWF wants to penetrate market, our product price is more reasonable than our
competitors. We fixed our product price base on design and capacity of the filters. The
following table will show the different price range of different types and models of water
filters:

Standard (Simple) Deluxe (Decorative)

9 liters TK. 790 N/A
12 liters TK. 950 N/A

16 liters TK. 1150 TK. 1350

20 liters TK. 1350 TK. 1550
24 liters TK. 1550 TK. 1750
 28 liters TK. 1750 TK. 1950
32 liters TK. 1950 TK. 2150

38 liters TK. 2300 N/A

Distribution Strategy
We think for a product like water filter distribution strategy is very important. And our
dealers are very important stake holder for us. That’s why we want to offer a good amount
of commission on sales to them (20%). Besides we want to develop a good distribution
channel to reach our rural customers because our competitors are still weak in this
segment. For this we want to develop strong dealers in all divisional cities and in
important districts like Narayanganj, Comilla, Rangpur, Coxe’s Bazar, Mymensing etc.

Promotional Strategy

Because of lack of our budget we can not afford to go for extensive promotional activities.
So we are going for selective promotional channels. We feel housewives and family
guardians are the key decision maker for purchasing water filters. So to reach them we
want to use print media like women magazine, daily newspapers. We also want to use
billboards and posters located near market places for advertisement.
Marketing Research
Using research, we are identifying the specific features and benefits that our target market
segments demand. Market feedback will help us to measure and analyze customers’
attitudes toward competing brands and products. Brand awareness research will help us to
determine the effectiveness and efficiency of our message and media. We will also use
customer satisfaction studies to gauge market reaction.

Action Programs
Standard Water Filter Company will carry out its marketing strategy and achieve it’s
objectives through a variety of scheduled program. In January, it plans to initiate trade
sales promotion to educate dealers and generate excitement for the product among them.
In March, it will hire more sales personnel to excel selling. In May, it will go for intensive
advertising. In July, SWF will bring new product model in market. In September, it will
give special discount on purchasing higher volume for dealers. In November, it will
declare special year end discount and gifts for consumers. Also some gift will be offered
for the best performing dealers, sales persons and other employees.

Budgets
Projected 1st year sales volume= 10,000 units
Average wholesale price= TK. 1000 per unit
Projected 1st year sales revenue= TK. 10,000,000
1st year deficit (maximum) = TK. 10,00,000
Fixed cost in the 1st year= TK. 80,00,000 Variable cost pet unit= TK. 300

8000000
Break-even sales = = 11,428 units
1000 − 300

Controls
We are planning tight control measures to closely monitor quality and customer service
satisfaction. This will enable us to react quickly in correcting any problems that may
occur. Besides we are pursuing sales analysis by breaking down total business sales by
market segments to identify strengths and weakness in the different areas of sales.