Marketing Strategy of Mum Drinking Water

Chapter – 1

Introduction

As we know that now-a days people of Bangladesh are becoming very health conscious and pure drinking water is one of the main component to become healthy and sound. In that light lot of companies are coming up with different brand of mineral water with different types of package and promotion.  So, there are high responds from the consumer sides on mineral water (Bureau of Statistics). Here my objective is to find out MUM’s Market Penetration Strategy comparing with other mineral water in the market.

Origin of the report

In today’s world academic education is not enough to enable student compete with confidence and reach his/her goal without having experience of the outside world. The report which has given the opportunity to learn about how a particular company sets its Marketing Strategy to launch its product in the market place to satisfy the organizational goal.

Topic of the report

A topic has to be selected for the report. A well-defined topic reveals what is going to be discussed throughout the report. The topic has been assigned “The Marketing Strategy of MUM drinking water in Bangladesh”.

Background of the study

Consumers often judge the quality of a product or a service on the basis of a variety of on formational cues that they associate with the product. Some of these cues are intrinsic to the product or services, others are extrinsic. Either singly or in composite, such cues provide the basis for perception of product and service quality. Cues that are intrinsic concern physical characteristics of the product its self, such as size, color, design etc. In the absences of actual experience with a product, consumers often within “evaluate” quality on the basis of extrinsic cues- cues that are external to the product itself, such as price, brand image, manufacturers, retail sores, or even the country origin.

Partex Beverage Limited (PBL) is one of the risen mineral water company in Bangladesh which serves MUM to the consumer. They have lots of distributors for their distribution who serves their product to the retailers time to time. For the institution most of the time they distribute directly to the end user or that institution.

When the wholesaler sell their product to retailer or institutions, sometimes the wholesalers give them credit facility. Now MUM wants to run out them from this strategy (wholesaler). They want to distribute their product to the retailers or institutions through distributors or directly, not through wholesalers while other competitors like Super Fresh, ACME, Duncan Kinley, Jibon, Pran etc. are selling their product through wholesalers. Super Fresh come up with different types of pack sizes where MUM has only 2 types of pack sizes. Super fresh are offering some kinds promotion to their dealer to promote their product and increase their sales and increase the awareness of their brand. In that concern I have to find out that what MUM should do for their dealer and at the same time for their end user.

Objective of the project

General objective

The general objective of this study is to complete the report. As per requirement of Business Administration Department of ASA University Bangladesh, all students need to prepare a report for the BUS 498 course to acquire practical knowledge about real business operation.

Specific Objective

The report that I have to do as Marketing student, must have some specific objectives. The specific of the report is to explore the Marketing strategy of “MUM” a bottled water product of Partex Beverage Limited (PBL).

Specific objective

• Identifying the market size & market share.
•  Identifying the target consumers according to demographic segmentation social class.
• Identifying marketing & sales objectives according to positioning of the product. i.e. Identifying the product attribute(s) (hygiene, convenience, safety, environmentally responsible etc.) that are highlighted in the communication message.
•  Identifying the perception of quality compare to different mineral water brands.
• Identifying the pricing policies.
•  Identifying the effectiveness of distribution strategy
• Identifying different promotional activities that the company offers like credit facility, discount, occasional gift, incentive etc.
•  Identifying the standardization of the product
•  Identifying the awareness of the consumers regarding the product in percentage.

 Scope of the project

Gathering information

Gathering the information from different places in Dhaka city.

Collect information from different types of age group, habitants etc.

What are the benefits of those consumers who are taking these mineral waters like MUM, Super Fresh, ACME, Pran, Jibon, Duncan, Kinley etc.

Whether consumer prefer different types of pack sizes. Are the consumers satisfied about the quality of MUM? Habit and life style of the consumer who take mineral water. Does advertising play a positive role to increase the awareness of their brand?

Analyzing the information

Analysis the above information from facts gathered and discussed with management of MUM.

Methodology

Sources and methods of data collection

For this study it will require both the Secondary and Primary data.

Secondary Data:

In the report I use both internal and external secondary data.

1.    Internal Secondary Data:

We collected some data (Market share, growth rate etc) from the management of PBL.

2.    External Secondary Data:

To compare some data we collected some information from different organizations and BSTI.

Primary Data:

Primary data is always known as survey data. This type of data is collected from the respondent. For this study we collected the primary data by taking personal interview with the consumer and different types of institution.

Sampling Plan

  i.        Target Population

People from different profession dink mineral water. So those who drink mineral water are our targeted population

 ii.        Sampling frame

60 different outlets where the company serve their products are sampling frame.

iii.        Sampling unit

Every individual who are chosen for questioning are considered as sampling unit.

iv.        Sampling size

The sample size is near about 60for this report.

 v.        Sampling method

As there are so many outlets located in different places in Dhaka city which cost very high to go everywhere, convenient sampling technique is applied.

Limitations of the study

There are some limitations of the study that might have prevented in reaching more faithful result. The limitations are stated below:

Because of unavailability of the information of DPHE, CAB, BBU, it was not possible to make the report as accurate as possible.

Time is one of the constraints of the study. The time duration to prepare the assignment is not enough to learn about the Marketing Strategy of any organization’s product. Besides, some important aspects of the report could not be covered because of time constraint. If more Marketing and other related factors that affects the market potentiality could have been considered, then the result might have contained more validity.

Every organization wants to maintain the confidentiality of the information. Because of this reason, the managers and officers who were interviewed did not disclose much information

Chapter – 2

Literature review

Marketing

A social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and values with others.

Product Life Cycle (PLC)

The course of a product’s sales and profits over its lifetime. It involves four distinct stages: Introduction, Growth, Maturity and Decline stage. The product life cycle stage in which a product’s sales start climbing quickly.

Pull Strategy

A promotion strategy that calls for spending a lot on adverting and consumer promotion to build up the consumer demand. If the strategy is successful, consumers will ask their retailers for the product, the retailers will ask the wholesalers, and the wholesalers will ask the producers.

Push Strategy 

A promotion strategy that calls for using the sales force and trade promotion to push the product through channels. The producer promotes the product to the wholesalers, the wholesalers to retailers, and the retailers promote to consumers.

Packaging

The activities of designing and producing the container or wrapper for a product. Traditionally, the primary function of the package was to maintain and protect the product. In recent years, product safety has also become a major packaging concern.

Product

Anything that can be offered to a market for attention, acquisition, use or consumption that might satisfy a want or need. It include physical objects, services, persons, places, organizations, and ideas.

Price

The amount of money charged for a product or service, or the sum of the values that consumers exchange for the benefits of having or using the product or services.

Distribution

Distribution or place includes company activities that make the product available to target consumers.

Promotion

Promotion means activities that communicate the merits of the products and the persuade target customers to buy it.

Brand Awareness

Brand awareness is the ability of a potential buyer to recognize or recall that a brand is a member of a certain product category. A link between product class and brand is involved

SWOT

Internal analysis to identify the company’s Strengths, Opportunities, Weakness and Threats.

Vertical Marketing System (VMS)

A distribution channel structure I which producers, wholesalers and retailers not as a unified system.

Satisfaction

The extent to which a product’s perceived performance matches a buyer’s expectations. If the product’s performance falls short of expectations, the buyer is dissatisfied. If the performance matches or exceeds expectations, the buyer is satisfied or delighted.

Chapter – 3

Company information and product Marketing Strategy

Company information

Partex Group:

Partex Group is one of the largest companies of our country. It was established in 1962. Partex Group of 17 industries. Net wrth at current market price nearly US $150 million. It has over 350distributor around the nation. There are more than 45,000 outlets it’s products are available. And Partex Group has over 7,000 employees.

Partex Beverage & their aim   

Partex Beverage Limited consists of 2 products – these are RC Cola and MUM. MUM offers a variety in consumer choice; 500 ml as individual and 1500 ml as a family pack size.

The sky is not the limit for them but their expectations are within limits. Their imagination soars beyond conventional barriers. They share their beloved motherland. They want to serve her better in the greater quest for national economic emancipation.

Enterprise is their life. They manufacture quality substitute consumer and industrial products. They offer consumer satisfaction keeping environmental and human factors in mind. It is this thrust that gives their organizational integrity. They treasure their reputation and protect it zealously.

 Company product & its Marketing Strategy

MUM:

1. Producer & Marketer –  Partex Beverage Ltd., units of Partex Group
2. Brand name – MUM
3. Type of the product – Natural drinking water
4. Pack size – 500ml &1500ml
5. Packaging –

Primary packaging – PET (Polyethylene Terepthalate)

Secondary packaging – A tray made of corrugated paper contains 12 bottles which is covered by shrink wrap

6. Product attributes –

Product quality –

Strictly following guideline & standard specification of quality level of WHO, IBWA, ICDDRB, Food and Nutrition Dept. of DU

It is free from adulteration and contamination

Produced under hygienic condition

Obtained BSTI license

Unique packaging feature –

Safe & pure natural

7. Design of the bottle – Crystal clear diamond shape
8. Shelf life – One year
9. Labeling – Attractive bluish label including all necessary information are composed for consumer awareness.
10. Use of the product – To quench thirst people
11.  Pay off line – get the most trusted pure natural drinking water
12. Product positioning – Pure hygienic natural drinking water
13. Target group – Mainly middle class to upper class
14. Use of the product – People of all ages
15. Types of outlets selling MUM-

Retail Market – Grocery shops, Tea stall, Confectionary, Fast foods, Sweet shops, Panaceas, General restaurant, Pastry shops in Bus-train-launch terminals etc.

Institutional Market –  Hospitals, clinics, Chinese restaurant, cafeteria, Luxury Hotels, Govt. & private offices, Banks, Insurance, Office of different ministers, Parliament, UN Bodies, NGOs, National & International Air Services, Social programs, Religious programs, Stadiums, Play ground, EPZ etc.

16. Date of the product launch – Inaugurated in April 28, 2000
17. Classification – Consumer product
18. Advertising media –

Electronic media – Circulating Advertising in TV different channels

Print media – Newspapers, Magazines

POP media – Poster

Outdoor material – Neon sign, Halogen sign, shop board, banner. etc.

Give away item – T-shirt, cap etc.

Market share of MUM

There are about 119 mineral water companies in our country. Currenly all of them are playing a vital role in the market. More or less each and every mineral water brands keep a market share. Among all 119 mineral water brands MUM is holding around 45 % market share.

Production Department

To assist the production department, an office has been set up near the factory, which is in Gazipur. All the manufacturing process is done there. It is headed by a plant manager, who reports to the production director at the head office.

 Product

From the survey report one can assume that MUM has basically a good image in the mineral water market. This product comes with 2 pack sizes 500ml and 1500ml which is greatly appreciated by the consumers. Quality perception is very much high to all the traders, institutions, and consumers. From the survey it is seen that a particular brand influence the purchasing behavior of a consumer and this is MUM. The reasons are, it’s reliability, feature, conformance and features. Mostly these four things of MUM influence the purchasing behavior of a consumer. Perception about the quality of product –

Reliability

For the sake of consumers, MUM makes it’s product with a great reliable mechanism.

It is free from adulteration and contamination.

Produced under hygienic condition

Obtained BSTI license.

Feature

Safe and pure natural drinking water. It is balance for people of all ages

Using price tag, expire date, bar code.

Using attractive packaging, labeling, and liner cap for lucrative get up.

Service

It is also appreciated by the consumers because it’s service is very good. It is available to everywhere. Such as –

 Retail Market – Grocery shops, Tea stall, Confectionary, Fast foods, Sweet shops, Panaceas, General restaurant, Pastry shops in Bus-train-launch terminals etc.

 Institutional Market –  Hospitals, clinics, Chinese restaurant, cafeteria, Luxury Hotels, Govt. & private offices, Banks, Insurance, Office of different ministers, Parliament, UN Bodies, NGOs, National & International Air Services, Social programs, Religious programs, Stadiums, Play ground, EPZ etc.

Conformance

Pure hygienic natural drinking water

People of all ages

Strictly following guideline & standard specification of quality level of WHO, IBWA, ICDDRB, Food and Nutrition Dept. of DU

Price

At first when MUM introduce itself to the market they set market skimming pricing because they had the quality product. They set high price for MUM. But now they are following backward pricing strategy because other brands price was much lower than MUM. As everyone knows that the market is price sensitive that’s why MUM set the price as reasonable as possible. For this reason consumers are also satisfied with their price. If we give a look at the survey data we will see that most of respondents also said that it’s pricing is excellent. Not only this but also most of mineral water brands almost set the similar price for same size. In this case consumers are getting more benefit from MUM by giving the similar amount such as high quality, assurance of purity etc. Yet their quality perception is good enough but they don’t charge the high price for their product.

Channel of Distribution

MUM distributes two pack sizes of mineral water through out Bangladesh. The products are distributed from the factory to the sales depots. They have a strong distribution base with 350 distributors and dealers nationwide and 64 distributors in Dhaka city. Hundreds of eager, energetic and effective sales representatives are working, supported by their dedicated sales and marketing division. To their vast sales and distribution network of dealers, they have 6 sale depots (warehouse) located at strategic points. These are – Dhaka, Chittagong, Rajshahi, Khulna, Sylhet, Barishal. There are 64 districts in Bangladesh and to maintain smooth and efficient distribution, they have mobilized adequate distributors and dealers to serve these regions. Distribution is carried out by their transport fleet supplemented by dealers transport also. They cove approximately 33,000 wholesalers and retail; outlets through this network, covered by 180vehicles of various sizes backed by 540 sales personnel. They are one of the largest distribution organization in Bangladesh. This network makes possible the flow of goods from the producer, through intermediaries to the buyer. The success of any new product in the market place greatly depends on an effective and responsive distribution network, which they ensure.

Promotion

Sometime company gives promotion to the wholesaler or retailer or consumer to increase their sales. In some cases company gives promotion to catch those consumers who are attracted by the other brands. In this case MUM gave promotion to the retailer to increase their sales. They gave 4 bottles free per carton. Then they change their strategy and they started giving 2 bottles free per carton. But the present situation is, MUM gets so popularity that they stopped giving promotion to the retailers. Because their sales is so high that they do not need to give any promotion to the retailer to increase their sales. Once upon a time MUIVI gave some promotion to the consumer also such as T-shirt, cap etc. But right now they don’t give any promotion to the consumer too.

 PLC (Product Life Cycle) of MUM

Through product life cycle any one can know the present situation of a product. Which position a product is in we can be able to know from the PLC graph. From the data and company information we know that at present MIM is in growth stage. Because at present their market share is 45% where in the previous year their market share was 38% and year before previous year their market share was 13%. It means they are in growth stage. If we give a look at the graph we can see the current position of MUM –

As MUM can satisfy the market so they are in growth stage where their sales is climbing quickly. In this situation they are attracted by the opportunities for profit and they started facing new competitors. Where new competitors are coming up with more pack sizes, different typed of promotions, different pricing strategies etc. For this reason the market is expanding and they had to reduce their price slightly.

Push & Pull Strategy

When MUM was at the primary stage they followed push strategy to reach the product to the consumer, to increase their sales. Not only incase of MUM, any type of product usually follow push strategy for the first time. When people get the knowledge about the product and get the high consumer acceptance than the manufacturer do not need to follow push strategy. Incase of MUM such a thing was take place. MUM does not need to follow push strategy right now because the awareness of MUM grows in such a way that everyone knows what MTJM is. MUM does not need push the retailer to pull the consumers for more sales. Consumers come to the retail shop and ask for MUM. Consumers pull the retailers to deliver them the product onetime. MUM creates such an awareness in the consumers mind that maximum consumers when want to purchase they never ask for a mineral water, they look for MUM. In this situation MUM does not need to follow push strategy, they are following pull strategy.

Marketing System

MUM follows two Marketing system to reach their product to the end user. These are :

Horizontal Marketing System

Vertical Marketing System

But they are usually follow Vertical Marketing System

As this case manufacturer and distributor act as a unified system reach the product to the retailer for sale. Fro the factory manufacturer send the product to their distributor, distributor deliver the product to the retailer and at last consumer get the product from the retailer.

SWOT analysis

SWOT is a tool by which we can justify the company’s internal analysis. We need to conduct SWOT to identify Strength, Weakness, Opportunities and Threat to market the product.

Strength

•       Excess production capacity
•       Good transportation facilities
•       Competitive market
•       ISO 9001 certified
•       Holding highest market share in market
•       Market is rapidly growing
•       Company create “Partex standard” to follow only the standard of MUM
•       Attractive advertising media
•       Obtained BSTI license
•       Production under hygienic condition
•       High brand image
•       High consumer perception

Weakness

Do not perform any in any promotional activities

Opportunities

Good product demand as this is a basic need

People are becoming very much health conscious

Threats

Competitors coming with up with variety sizes of bottles.