GROUP MEMBERS

SULEMAN JAVED MUHAMMAD TAHIR ATIF JAMIL ABDULLAH AJAZ BUTT 2526 2532 2530 2505

WATER PURIFICATION MARKETING PLAN

WATER PURIFICATION MARKETING PLAN

Executive Summary
y Pure Life Cycle Industries, Inc. provides the service

of Water Purification for industrial reasons and take advantage of an unsatisfied market need of Pure Water on a portable basis. y The company will primarily focus market of customers who require high-quality Pure Water for their water treatment facilities. y The facility that Pure Life Cycle Industries will utilize is located in Attock, Pakistan and is already in limited production.

Revenue
y Pure Life Cycle Industries will generate gross sales

of Rs17,88,000 in the first year, reaching Rs2.9 million in the second, and Rs4.2 million in the third years. y Keys to success: 1. Good quality control in the factory. 2. Fast response. 3. High-profile allegiances.

Situation Analysis
y Pure Life Cycle Industries as in its first year of

operation will purchased the assets of an existing company. y The basic market need is for portable Water purification units can be leased or purchased. y The market need for leases includes exemplary service levels. This means that when a customer undertakes a lease they are effectively leasing Pure Life Cycle Industries as a service provider.

Market Summary
y Pure Life Cycle Industries possess good

information about the market needs, this information will be used to generate strategies to better y understand the customers, their specific needs, and the most effective ways to communicate with them.

Market Needs
y Pure Life Cycle Industries seeks to fulfill the following

benefits that are important to its customers:  Selection: Pure Life Cycle Industries posses high potential to offer solutions to everyone.  Flexibility Pure Life Cycle Industries must be able to work with each customer's individual needs.  Customer Service: Exemplary customer support is required since purified water is such an important variable for the customer's business.

Market Trends
 One notable trend in industries is to outsource.

Then many large users of Pure Life Cycle Industries will want to set up their own in-house capacity, because the capital costs, maintenance costs, and the costs of dealing with Water Purification waste often make Water Purification a more economical solution.  As now a days industries need high degree of results in an ever-growing market for Life Cycle Industries.

SWOT ANALYSIS
THE OVERALL EVALUATION OF COMPANY STRENGTH, WEAKNESS, OPPORTUNITY AND THREATS ARE KNOWN AS SWOT ANALYSIS.

Strengths

y A very strong service-based company culture. y The ability to meet customer's particular needs. y An already existing customer base.

Weaknesses
y The need for significant capital for equipment. y Capital expenses required for the development of a

comprehensive dealer network. y Difficulty in establishing brand equity.

Opportunities &Threats
y Participation in a growing market. y The huge diversification of potential customers, reducing y y y

risk if there is a downturn in a specific industry. Operating efficiencies that are attainable as the business grows Changes in technology that could effect companies that are heavily invested in current technology. Future/potential competition from a large company that decides to take a more flexible approach to meeting customer's needs. Changes in the regulatory environment (primarily applicable to the higher purity products).

Competition
y The user of pure life cycle industries has little choice

to find out the alternative. y It is Water Purification on a bulk basis only. y Good quality and low price.

Service Offering
y There are no chemicals, nor regenerated waste to be y y y y y

handled or concerned with on-site. Ease of installation. Space is another important factor. . Carbon (used for pre-filtering). The client does not have to incur substantial capital costs to install an in-house Water Purification Plan. The company also saves by not needing experienced technicians to maintain an in-house plant.

Future Product and Services

y Company plans to expand sales of filters and DI

cartridges. y Pure life cycle Industries also has plans to develop a reusable shipping container for its smallest DI exchange tank so that this can also be shipped via UPS. y Pure life cycle Industries plans to offer service contracts to maintain this equipment at the customer's location. y This product will be marketed on a website, as well as through conventional direct mail and yellow page advertising.

Industry Analysis
y y

The company has grown from Rs1 billion to over Rs5 billion in the past six years The industry for providing Water Purification service is dominated by many small companies.

Industry Participants
y Industry participants are varied, as there are several means of

obtaining purified water. There are companies which design and engineer reverse osmosis equipment. This equipment has a sizable share of the water market at the end close to the municipal water inlet. y Some industry participants are primarily engaged in water softening and water filtration for drinking and household purposes. These companies may also utilize green sand to remove iron and magnesium hardness derived from aging municipal piping systems. y In short, there is a full range of industry participants representative mainly involved in private households, to large companies involved in engineering, design, consulting, component manufacturing, waste water treatment, etc.

Keys to Success
Good quality control in the factory. Customers for high purity water have a very low tolerance threshold for flaws. Fast response. In the case of most of pure life cycle Industries' customers, the cost of the water is not a major element in their overall costs, but a very expensive shutdown could result due to poor or slow servicing. High-profile allegiances. Key to overall company success is connected closely with success in achieving the goal of developing a dealership network of serviceoriented water companies.

Critical Issues

y Expand at a rate not for expansion itself, but to

properly serve existing customers.

y Pursue controlled growth that dictates that payroll

expenses will never exceed sales revenue.

Marketing Strategy

PURE LIFE CYCLE INDUSTRIES' MARKETING STRATEGY WILL BE TO EXECUTE AND COMMUNICATE ITS VALUE PROPOSITION OF SERVICE AND MARKET SEGMENTATION ADVANTAGE IN PROVIDING WATER PURIFICATION FACULTIES TO THE CUSTOMERS. THIS WILL BE EXPANDED ON IN UPCOMING SECTIONS.

Mission

 Pure Life Cycle Industries' mission is to segment the

market for pure water by providing products to specialized industry sectors that are otherwise not properly serviced by large pure water suppliers.

Marketing Objectives
y Marketing Objectives  Maintain positive, steady sales growth each quarter.  Achieve increase in market penetration every two

quarters.  Generate brand equity so that Pure Life Cycle Industries becomes a household word within the industry.

Financial Objectives
 Decrease fixed costs by increasing the sales base,

leveraging economies of scale.  Increase profit margin by 2% a year through operating efficiencies that are then passed throughout the organization.  Do not decrease research and development, as a percentage of sales, regardless of the economic climate or market position.

Target Markets
y Hospital Dialysis Units y Electronic Manufacturers y Machine Tools and Parts y Other

Positioning
y Pure Life Cycle Industries' ability to regenerate Pure

Water on For Specific basis, rather than only bulk, is a capability that should provide quick and easy entry into the user market where the highest water purity is needed. y The second most important position statement is Pure Life Cycle Industries' concentration on the Water Purification business. This concentration will force Pure Life Cycle Industries to provide a higher level of service, and more quickly, too..

Strategy Pyramids
y Position itself as the premier service provider of

Water Purification equipment & quickly developing market penetration. y Create customer awareness regarding the products and services that Pure Life Cycle Industries offers. y Build a network of dealers that can assist Pure Life Cycle Industries in the distribution. y Build a large foundation of satisfied, repeat customers.

Marketing Mix
y Pricing:  Pure Life Cycle Industries can charge a higher price

for its High Quality Pure Water.

 Wholesale prices have been established to

encourage the quick formation of a dealership network. Dealers are afforded a 33% discount.

Marketing Mix Con

y Distribution:  It will utilize a network of water service companies.

These companies will be carefully chosen for their quality of service.

 An arrangement will be set up whereby the

distributor will offer Water Purification service along with its other water services.  A 33% discount off the retail price should be adequate to satisfy the distributors.

Marketing Mix Con..

y Advertising and Promotion: y Promotion to Pure Life Cycle Industries end-users. y Promotion to wholesalers. Promotion to wholesalers should

receive primary stress due to the extended reach made possible by the wholesaler network with its existing customer base.

y The first method will be advertisements. The advertisements will be

placed in industry journals, not only the water purification industry, but industry journals of the customers. This will help Pure Life Cycle Industries develop brand awareness. y Another method of communication will be participation in trade shows. Being a part of the trade shows is almost a requirement these days and Pure Life Cycle Industries will have a significant presence. y The last method of communication will be a roving sales force whose task it is to set up a dealership network.

Marketing Mix Con

y Customer Service: y The customer's expectations must be exceeded,

always. The only way the company can succeed is if they ensure all of the customer's needs are being met and the customer leaves the transaction with the feeling that they were truly appreciated.

Marketing Research
y Pure Life Cycle Industries performed comprehensive

amounts of market research before the initiation of these business plans. . y The owners were aware when they entered the industry that at some point in the future they desired to operate their own business instead of working for someone else.

Financial Overview

Break-even point
The break-even analysis indicates that Rs55,686 will be needed in monthly sales to match the total planned expenses

Break-even Analysis

Monthly Revenue Break-even Assumptions: Average Percent Variable Cost Estimated Monthly Fixed Cost

Rs42,151

30% Rs42,121

Sales Forecast
y Sales are expected to be Rs24,000 monthly, exclusive of

rental revenue y Once the 80% capacity utilization level is reached (October 2012), unit sales will grow by 5% in year two and 5% again in year three. This growth can be achieved within the capacity limits of 100 cu. ft. daily (26,000 cu. ft. per annum) without increases in production labor y Direct unit costs for years two and three remain at the level of year one.

Rental Income
y Half of all directly-generated sales will involve rental y y y y

tanks i.e. 534 cu All rentals will be in 12 inch tanks holding 3.6 cu. Rant Rs40 per tank Total direct sales in October = 267 cu. ft October will see rental income of Rs1,480

Tank Sales
y Sales of tanks is assumed at only five percent of the

number of monthly rental tanks

y Sales price of a tank Rs1,200 y Cost of a tank Rs450

Marketing plans

Marketing Budget
Marketing Expense Budget 2014 Advertisements Rs120,000 Tradeshows Rs35,000 Other Rs120,000 2012 Rs96,500 Rs25,000 Rs108,700 2013 Rs110,400 Rs30,000 Rs115,000

---------------Total Sales and Marketing Expenses Rs275,000 Percent of Sales 12.03% Rs230,200 29.20%

-----------Rs255,400 13.44%

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Marketing Activities
Advertising Marketing plan completions Ad campaign #1 Ad campaign #2 Trade show #1 Trade show #2 Trade show #3 Totals Start Date 1/1/2012 2/1/2012 7/1/2012 3/1/2012 6/1/201 9/15/2012 End Date 2/1/2012 6/30/2012 12/30/2012 3/15/2012 26/15/2012 10/30/2012 Budget RS0 Manager Atif Department Marketing Marketing Marketing Marketing Marketing Marketing

Rs39,000 Atif Rs57,500 Atif Rs6,000 Atif Rs9,000 Atif Rs10,000 Atif Rs121,500

Controls
y Revenue: monthly and annual, performance

compared to planned sales projections. y Expenses: monthly and annual, compared to planned expenses. y Research and Development: as a percentage of revenue. y Customer Satisfaction: to result in repeat purchases and generating active customer referals.

Difficulties and Risks

y Problems generating sufficient sales y Overly aggressive and debilitating actions by

competitors
y Barriers developing a large network of supporting

dealers.

Worst Case Risks May Include

y Determining that the business cannot support itself

on an ongoing basis. y Having to liquidate equipment or intellectual property to cover liabilities