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Running Head; MARKETTING PLAN

Marketing Plan for a New Product

Name

Course

Institution

Date
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MARKETTING PLAN

Introduction and background information of the company

The aim of this study is to prepare a marketing plan for Josephson Water Company for a product

that has been newly introduced in the market. The company is located in India’s capital city,

New Delhi. The flavored bottled pure drinking water sector in India and other parts of the UAE

is continuously growing, with new entrant companies coming into the industry with new

products of bottled water, and different flavors (Luís et al., 2021). In order to remain

competitive, the organization has introduced new product in a bid to differentiate its products

from competitors’ and improve the consumer value by selling at relatively low costs to attract

customers. The product will be named Dani Water, with additional ingredients designed to meet

the need of different consumer segments in the bottled water sector in the UAE.

Product Description

Josephson’s Dani water is a bottled water product designed to satisfy the needs of different

market segments in the bottled water sector in the India. The product is differentiated and unique

compared to other similar bottled water products in the sector, and has additional nutritional

ingredients compared to competitors’. The water product for Josephson will be packaged in glass

containers of variable sizes for convenience from as low as 250ml, 500ml, and in 1 liter capacity.

The product is designed to meet the health needs of the sick consumers under medication, but

also consider suitable for the healthy populations. The target segment for the marketing plan will

be varied.

1.2 Product Profile

Name of the Product: Dani Water

Type of Product: Flavored bottled water with added nutrients

Additional ingredients Ingredients: Vitamin C, Glucose, 10x as much mineral salts

as tap water.

The type of container Reusable Clear glass bottle

Size of container 300ml, 750ml, and 1.5l

Price of the product ($): 250ml for $1.2, 500ml for $1.8, and $1l for

$38

Estimate shelf life 12 months since manufacture date

Type of machine technology Pack Tech Automatic water system—AI

technology, USA.

Slogan of the product Enhancing health in every drop

Market Trends and Analysis

The demand for bottled water products in India is increasingly high. In 2018, the sector is

projected to grow by about $160 billion to $ 403.06 billion in 2025. In 2018 alone, the 1l bottle

occupied 42% of the share of the market, followed by 500ml, and lastly the 250ml. In terms of

the volume, the market is projected to attain about $ 35.53 billion liters in total by 2025,

increasing its CAGR approximated to be about 18.25% between 2018 and 2025.

The projected increase in demand is mainly because for over the last two decades, India

has experienced influx of medical tourists, increasing hospitality and hotel sector, and generally

large urban population. Particularly, in 2019, the population of migrants was estimated to be 7.8

million out of the entire population estimated to be 9.2 million. Considering the working
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population, there was over 80% migrant workers, accounting for more than 90% of the whole

India’s workforce.

The market gap

In a study conducted by Yosri (2021), tourists prefer water that has been bottled, with the

medical tourist preferring water products with additional mineral content and nutrients. The

study reported that the tourism sector was projected to increase by 2025 by 6.7%. The increasing

tourists population and generally high migrant mid class population provides an ideal

opportunity, but focusing on the tourist in hospitality and medical segments. Companies in the

sector focus on packaging attractiveness, but similar water product ingredients—mostly

additional mineral water compared to tap water and flavors (Paluchová., 2017). This does not

fulfill the needs of the medical sector tourists, compelling them to consume the available

products, lacking vitamin C, iron, glucose, and natural flavors. This gap is an opportunity for

Josephson to expand its new product line in the market.

How Dani Water will fulfill the market gap

The products in the market do not fulfill the needs of the medical sector tourists, compelling

them to consume the available products lacking vitamin C, iron, glucose, and natural flavors.

This gap is an opportunity for Josephson to expand its new product line in the market. Our

products will put more efforts on including these ingredients in our products to improve the

dietetic need of the sick, and also enhance health for the healthy population
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Analysis of External environment

PESTEL analysis is the most appropriate tool for analyzing external business environment for a

company to determine external factors it does not have control over (Al Zaidi & Ahmad., 2019).

P Political interference in India and the entire MENA region is limited; this is why the

business regulations in the sector are favorable for bottled water manufacturing.

E The economy of India is generally good, with high and consistently increasing

demand for bottled water products. Also, the UAE in general leads globally as tourist

destination, hence sustaining the economy.

S Demography or the general population of India is Ideal for our product, given that it

comprise of majorly the tourists, the medical tourists, and the general population as

well. The population also understands value of diet, thus increased demand for our

product.

T The technological advancement in the sector still lags behind; our company uses AI

enabled technology hence increasing production to meet the growing demand.

E Out of about 9 million people in India, about 7 million are immigrants, and most of

them are working mid and high class. This suggests higher GDP, and higher

purchasing power.

L The legal sector is favorable for food products in the UAE. For instance, the

government provides incentives for food processing and manufacturing sector in form

of tax exemption. This is an advantage for our firm at economical cost.

Market Segments

Geographic Segmentation
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 Bangalore

 Mumbai

 New Delhi.

 Goa

 Chennai

Demographics:

 Individual medical tourists

 Families

 Business organizations

 Sports personalities

Psycho graphics:

 High income class

 Higher mid income class

 Middle income class

Behavioral:

 Sick population

 Healthy population

 The undecided consumers unsettled on any brand’s product

Target segment and analysis

Considering the evaluations conducted on the above target segments Josephson will sale its new

product as per the product category. The main target segments belong to the medical tourism

sector, the sick populations, the healthy individuals, sports personalities, and families. In order

for our prices to remain competitive, we sale the 250ml bottles at $120, the 250ml bottled at

$180, and the 1 liter bottles for $180. In order to determine the prices, we will first asses the cost

of production, and estimated profits, and then set our prices at par with competitors, but with

improve ingredient content. The demand for our product will be higher because of differentiated

products with additional nutrients, reusable water bottle, and relatively low prices at high

consumer value.

In our analysis, the target population composed of 32% of the healthy population, 43% of the

sick individuals, general consumers at 22%, and tourists at 3%. Our marketing will be

proportional to the demographic proportion, focusing more on highest demographic proportion.

The sick population needs additional nutrients required to improve medical conditions.

Considering the high immigrant population, incidences of lifestyle disease is projected to

increase. This aspect has made more healthy population to prioritize their diet, and thus demand

for our product in the segment will be higher. Tourists also belong to high class, and majority of

them come from high income countries who understand the value of nutrition.

Consumer Needs

Dani Water products aim to fulfill the needs of consumers in terms of value, cost, and

differentiation. Accordingly, we will package our bottled water in different sizes for convenience
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of different market segments. The 250ml products will be sold at lowest price per piece, mainly

in the middle class levels and individuals. The 500ml bottles will target the sick populations and

the tourist segments. Finally, the liter containers will be mainly targeted at families.

Competitive Analysis of the company

The bottled water sector in India is highly competitive. Numerous firms share the available

market. However, the additional ingredients with nutritional value will make our product more

competitive and increase our share of the market. Among the firms in the sector, none has

considered including nutritional ingredients such as vitamin C and ion in bottled water products.

2.3.1 SWOT analysis:

Strengths Weaknesses

 Unique products  The innovation is easy to duplicate

 Low cost of production  Market uncertainty

 High tech production machinery  Small share of market

Threats Opportunities

 Entrant firms with new products  Increasing demand

 Uncertainty of future competitiveness  High population

 Introduction of similar products as time  Increasing awareness for healthy diet

passes
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Competitive advantages

Currently, our company enjoys monopoly because the product is new. However, when the

product begins to gain popularity, other companies will engage in the business. But one

advantage is that the new entrant firms will take time before catching up, until then, our firm will

be a monopolist. Pricing is another strategy we will use, lower the price because of economies of

scale. This will make it hard for competitors to lower theirs as their market share will be small

during entry.

Marketing Mix

Products:

The bottled water sector in India is competitive. In order for our company to retain its market

share, we will focus on fulfilling the consumer needs (Khadra., 2020). For instance, we will add

nutritional ingredients, something never tied by our competitors; this will give use competitive

advantage.

Price

For the process of our products to remain competitive, we have customized the sizes of bottled

for different market segments. In order for the products to fetch high prices, we will allow our

pricing to be market-follower—follow pricing of the sector.

Distribution
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MARKETTING PLAN

Our company prefers direct distribution to the target segments. This will allow us get first had

feedback from consumers on how to improve our products to satisfy their needs.

Promotion

Considering that a majority of our target consumers belong high and mid class, we will partner

with air travel companies and international sporting corporations. This will increase exposure of

our brand and increase demand.

Implementation of the marketing plan

Marketing Organization

Considering that the product is new at the company, and that they need to be designed to meet

the demand of the target segments, we first need to reorganize our organizational culture to align

with new goals. Accordingly, we restructure introducing; a production department to oversee the

production operations and processes; sales and marketing department responsible for promotion

decisions; research and development to manage research purposes to ensure the technology and

ingredients meet the needs of consumers; finance department to manage financial operations,

and transport and logistics department to manage distribution to consumers. This will help

achieve the new goals for the company as per new product goals.
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Activities, Responsibilities, and Timetables

 Date Activity

 On 1st Jan  Create the temporary project

management position to lead the

restructuring of the organization and

planning of the whole process.

 By 5th Jan  Create the position of research and

development to advice on best designs to

determine operations process needs.

 By 30th jan  establish a full functional

organizational structure

 By 5th Feb  assign marketing department to

conduct random survey of target segments

 By 10th Feb  analyze the survey data

 By 15th Feb  make necessary adjustments

 By 20th Feb  design the operations process

 By 25th Feb  develop plan for making the new

product

 By 30th Feb  implement the plan and design new

product

 By 10th March  March match the different product

with market segments and asses satisfaction

 15th march  Evaluate the assessment results

 By 30th march  reestablish the organization’s

objectives as per the assessment results

Performance Standards controls for finance

Comparative financial expenditure will be presented in the plan. The key performance indicators,

standards and financial controls will be included;

 The total budget for implementation alongside objectives will be presented. The cost of

consumer survey will be 60% of the yearly budget of promotion for next year.

 Budget breakdown including 20% for spending on billing cycles, 50% on developing and

implementing new product, 30% on customer surveying consumer market.

 Each of the members of the team will be mandated to report all financial expenses for

their part of the project.

 Offers will be determined on quarterly basis to evaluate the profitability.

 The expenses on developing the new product will be spread over a period of two years,

quarterly and comparison made against total gross income for that period

Monitoring Procedures

In order to determine the effectiveness of the marketing of the company, the real obtained

performance will be compared with respect to objectives of the plan as follows;

 For evaluating the implementation of the plan, project management tools and relevant

concepts are used to determine necessary requirements, budget, finance, and human

resources needed.
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 Consistent comparative reporting on the achieved outcomes against the established

objectives on monthly basis for initial year, and on quarterly basis years following

implementation. The finance department will report their outcomes to the CEO of the

company.

 The members of the organization will each be mandated to track necessary changes to

modify the product, operations processes, or even the outcomes of the survey conducted

on the geographical target segment

Conclusion
The aim was to create a marketing plan for Josephson’s new water product named Dani.

Considering the high competition in the market, the company must prioritize marketing and

promotion of its new product. The product is still new, and thus Josephson enjoys monopoly in

the sector. However, as time passes, new entrants are expected, aspects that will reduce its

market share. Therefore, the management should engage in continuous promotion, and research

and development to ensure no other company reduces its market share.

References

Al Zaidi, S. M., & Ahmad, S. Z. (2019). Tone fitness ladies’ studio: market segmentation or

market mix?. Emerald Emerging Markets Case Studies.

Khadra, W. M. (2020). Authenticity of bottled water chemical composition inferred from brand

labels: example of the Lebanese market. Journal of Food Composition and Analysis, 93,

103609.

Luís, C., Algarra, M., Câmara, J. S., & Perestrelo, R. (2021). Comprehensive insight from

phthalates occurrence: From health outcomes to emerging analytical

approaches. Toxics, 9(7), 157.

Paluchová, J. (2017). 11. Consumer segments in an international context. Consumer trends and

new product opportunities in the food sector, 173.

Yosri, S. (2021). Market Analysis: A study of the Gulf Cooperation Council Members as target

for FinContainer product.