Discuss About The Marketing Plan For Water Social Enterprise?
The ‘thank you water social enterprise’ is found in Melbourne supplying bottled water, food and body care products covering the city and its environs. It is a social enterprise owned by one of the friendship group in Melbourne city founded by Daniel Flynn. The aim of the social enterprise is to provide life changing water and use the100% proceeds for the needy in society. The 50 products offered include; bottled water, baby care products, and cereals and snack bars and others. The bottled water is the main product in Melbourne city and it is sold in wholesale and in retail channels outlets. It distributes about million liters of bottled drinking water in a day through its 55,000 outlets. It is currently worth $600 million a year.
In Australia the bottled water industry is worth $600 million, statistics show that over 5 million Australian drink bottled water in respective of the brand (McDonald & Wilson, 2016). Market is segmented according to the type of water brand purchased. For example the purchase Fiji water brand to be class, and Thank you water to support charity work. Findings show that people have shifted from drinking carbonated drinks and water to bottled water. The bottled water have largest market share of 65%, carbonated water 23%, flavored water 9%, and other drinks 3%. The statistics show there is growing need and a gap to be filled in the water bottle industry. The policy is to use suitable marketing strategies and methodologies in its market plan to fill the gap.
Marketing plan action plan
The market plan employs a social enterprise model to achieve its objectives (Kowalkowski, Windahl, Kindstr?m, & Gebauer, 2015). The objectives of the marketing plan include:
- To increase current market share, brand image and positioning of ‘thank you water social enterprise’ in global market.
- To increase social support and partnership through project activities in helping the needy across the world.
To ensure that the objectives are achieved the organization will apply several marketing strategies and techniques as part of its action plan.
The social enterprise will have to consider more than physical attributes to define the main product offered to its customers. The management will describe the brand, image, its delivery and features that will make a difference in changing customer behavior and decision on the products (Porter, Downy, Scarborough, Sahin & Stewart, 2015). Product offered cover the following categories: water and body care, food products and baby products. Based on the business model any water bottle and body care products purchase will support sanitation, clean water and hygiene facilities project initiatives, food products purchase will support food aid programs and better farming, and any baby products purchased will support immunization and medical supplies to mothers and babies. The main product to be offered is premium bottled water packaged in different sizes. The enterprise will offer a portfolio of different products to be able to market the bottled water supplies.
The ‘thank you water social enterprise’ will rely on evoking emotions of customers towards the different products. The products represent ‘quick selling products’ that can be consumed immediately by the customers. The customers can call anytime to have their supply of precious product done. The purpose of using portfolio of products strategies ensures that the customer can support the project initiative of choice, and be able to know where their money is heading too. 1.2.2. Price
Pricing is a critical component in determining demand and supply of a product in the market (Hollensen, 2015). Before coming up with pricing strategies the organization will consider cost of production, and sustainability of the product in the market. The management will ensure that the ‘thank you water’ product will cost less than the market price. The price will be lower because the cost of production is subsidized by the manufacturing organization that is producing the products and is in support with organization initiative. In addition the amount contributes as donations will be able to meet operational costs thus lowering the cost of production and final product pricing.
The distribution of costs and mark-up is to reduce any price impact and create a positive perception of an affordable product. The enterprise will employ a considerable attractive price tag in conjunction with a higher quality of goods and offered. The purpose of using such pricing strategies is to create a social picture of a charitable organization supporting a worthy cause. Table 1 shows the summary of price of water brand versus the retail market price of other competitors.
Table 1 Price differentials
Brand of the product
Current company retail prices
Market retail prices
300ml spring water
600ml spring water
750ml spring water
1.5 lit spring water
600ml spring pack water
The ‘thank you water social enterprise’ will be seeking to inform customers about the product availability. It will be seeking to educate customers of importance of participating in social responsibility activities. The entire advertising campaign will be guided by the advertising punch line that 100% will support water projects. Adoption of promotion strategies will be guided by three main elements: costs, nature of products and services, and nature of customers engaged. The organization will intend to choose a suitable effective media to cover wider scope. The company will employ different marketing campaigns to create an impact in the market.
Due to emergence of social media (face book, websites, what up) the study will use it to cover a wider scope of customers (Furlong, De Silva, Guthrie, & Considine, 2016). The campaign that will be used in the social will be to ‘make a difference’ by allowing individuals to create innovative video’s that will reach several audiences, will get reviews and comments. The purpose is to attract large supermarket to stock the products in their stores and outlets. The advertisement posted in the social media will be designed in pictorial form, descriptions and allowed to be circulated and shared.
The social media platform will be useful in educating audiences on issues related to importance of sustainable of water solutions. The nature of clarifications and nature of products and services makes direct sales marketing persons to be suitable (Ryan, 2016). The social media will help the consumers to track how their money has been spent. This will be done by developing ‘the track your impact initiative.’ The customer views and comments will be useful in obtaining feedback from customers related to product use and attributes. The combination of the promotion strategies is aimed at covering more audiences, obtain direct feedback, provide social interaction, and accountability among customers.
Shows The Promotion Mix
Place defines the locality, product availability, and provides utility to the customer. It describes clearly how a product and services will be made available to the intended audiences (Chari, Katsikeas, Balabanis & Robson, 2014). The geographical and accessibility of potential customers is important in provision of products and services (Lowe, Lynch & Lowe, 2014). The ‘thank you water social enterprise’ will apply a channel of distribution strategy based on three elements considerations: number of customers targeted, degree of directness to customers, and availability of channel players. The social enterprise will be seeking to have a secure production, distribution and sales channel.
The social enterprise will to work with store chains and outlets to sell the products. The use of social media as a tool to create more awareness is to make large supermarket chains (cools and Woolworth) to stock the products in their outlets.
The social enterprise will be employing a producer to distributor to customer channel (Barrington, Sridharan, Saunders, Souter, Bartram, Shields & Hughes, 2016). The different customers will find the products from the different outlets located near them. The place strategy will not be involving middle persons in providing the products (Patsiaouras, Saren & Fitchett, 2015). The customers are located in different regions in Melbourne city. Because of the nature of the product it requires that consumers buy the direct products to the customers. The social enterprise will ensure that a direct contact with customers is achieved. The channel is suitable in obtaining information and clarifying information to the customers. The channel of distribution will be suitable directly contacting customer needs, cutting down costs and eliminating any potential competitors. The place strategy employed will create a major differential with other players in the market. The distribution channel will also work with communicating directly to the customers using promotional techniques (Worthington, & Higgs, 2014). The link channel adopted will change over time in order to suit changing and future business needs of the organization (Parente & Strausbaugh-Hutchinson, 2014).
People are important resources in ensuring processes and activities are achieved. People represent market demographics fitting organizations objectives and resources required to achieve the objectives (Baron, Warnaby & Hunter?Jones, 2014). The company will employ a lean management structure in which it will have fewer employees. The management structure will involve Daniel Flynn being the managing director and Justin Flynn being the marketing manager. The use of the lean management is useful in reducing leadership and decision making challenges.
The people involve the customers of the organization whom are represented by the population. The demographics in Melbourne are approximated to be more than 8 million individuals consisting of residents and non-residents. The level of water consumption in Melbourne is estimated to be over 350 billion litters annually both for drinking. The demographic characteristics of the population in Melbourne include age, gender and occupations (Lowe, Lynch & Lowe, 2015). The town requires constant supply of clean water for the needs of the consumers to avoid water borne related diseases that can be provided through spring bottled water.
The social enterprise will employ segmentation strategies in order to reach the intend audiences (Fam, Mitchell, Abeysuriya & Lopes, 2014). The demographic segmentation of occupation will be used. The ‘thank you water social enterprise’ will focus on applying differential marketing on both types of consumers. Differential marketing involves using different methods, techniques and media in approaching different persons and institutions. Total consideration of the consumers will be given priority because they are the key stakeholders. Ethical considerations and legislations will be based on the needs of consumers. Quality methodologies and standards will form the basis of providing water services to its consumers.
The process defines how products will be delivered to the consumers. It is more than distribution strategies but it defines nature of services and products being offered (Adapa, Bhullar & de Souza, 2016). Organizations focus on their process to ensure it meets customer needs and standards. The social enterprise will have to employ creativity and initiative to enable success in the organization (Rathnayaka, Maheepala, Nawarathna, George, Malano, Arora & Roberts, 2014). The methodology of obtaining funding from private sponsors through a social support initiative is a creative process and effective. The company is able to ease its production process with support emanating from its customers.
The service charter will describe how quality of services will be achieved and managed to members of public. It will be suited in positions and networks that will make accessibility possible; in addition it will form a basis of communicating. Quality services are critical in service provisions and meeting customer satisfaction. The quality defines safety standards, water quality, trade waste services, and notifications of interruptions. The nature of the services offered is clearly defined by the vision of the social enterprise in its charter and public platforms. The vision is to provide life changing water to its customers. The social enterprise will strive at providing healthy water for life by having innovative and creative methods of delivering it. The social enterprise will have an online service that will focus to provide an alternative means to access information to its customers and community (Armstrong, Kotler, Harker & Brennan, 2015). To ensure that the organization is in line with environmental management globally the social enterprise will tag all bottles reuse after use. The process is to encourage customers to recycle back the used bottles and ensure that environment is managed.
In marketing physical attributes define uniqueness of products that customers can associate or identify with. The product physical attributes is important because it describe product characteristics and features. The product physical attributes is creating product differentials. It is a marketing strategy that creates a distinctive difference in physical attributes of a product either through imaging, branding and packaging. The ‘thank you waters social enterprise’ will design its products according to required standards and organization policies to create a brand image that consumers will be able to identify with. All products will have the organization logo branded on them for company identification (Evans, Pattanayak, Young, Buszin, Rai & Bihm, 2014).
A new technology developed by research team that will make the product to be unique over the others is to have a transparent gripped bottle. The bottles are labeled with a black sticker thank you in different sizes. To make uniqueness of the product the bottled drinking facilities will be colored black while the bottle will be sparkling and colorless to make a clear difference and uniqueness. Any work undertaken will be done according to safety standards stated by occupational health and safety system. Other physical attributes contained is safety precaution outlets, combined customer assurance policies and legislations. The company will be paying great attributes on the products so that they look attractive and pleasing to customers.
Partnership relationship is critical component in ensuring organizations achieve its objectives. The marketing plan objectives can be achieved effectively by employing a partnership social approach with various stakeholders. The social enterprise approach model employed is to lure private donors to support company initiatives than using shareholders and investors. The other stakeholders that need to be collaborated include: city and national government ministries, international and Australian water trusts, international environmental bodies, energy regulatory commission, and citizens of Melbourne city (Angell & Kraemer, 2017).
The relationship with stakeholders will be based on social enterprise partnership which allows sharing of ideas, information, creation of awareness, and providing consultative initiatives (Ferguson, Brown, Frantzeskaki, de Haan, & Deletic, 2013). Partnership with credible organizations will be the key activity of the organization to eliminate bad image reputations. During marketing all brandings will be done showing the partners as part of the sponsorship of the products and services provided (Sahin, Stewart & Porter, 2015). Both parties in one occasion will be involved in decision making process. The social enterprise will only be giving funds to individual projects, partners that align with the vision of the organization. The importance of having stakeholder relationship is to increase confidence among consumers, reduction of risks and conflicts resulting from non-compliance of standards and legislations (Liu, Giurco, Mukheibir, & White, 2016). The social enterprise will employ a direct communication technique to ensure the relationships are maintained (Prevos, 2016).
The management of ‘thank you waters social enterprise’ will need to employ a combination of marketing strategies and methods to ensure that its marketing objectives are achieved. The market plan formulated is important in creating awareness and providing a guideline that organizations can follow to achieve the intended objectives. The aim of organization is providing life change water that can be met by employing suitable strategies to promote awareness of recycled water to its users and support 100% social responsibility in community. The combination of strategies will enable the organization to be competitive in the industry by capturing a larger market share and maintaining customer loyalty. If a clear road map of implementing strategies is done the organization can improve its performance within a shorter time period and it will enable it monopolize on the services and products offered.
From the findings and literature reviewed on marketing strategies and methodologies in the case study the following are recommendations of marketing plan. The impact that the marketing plan created was great according to the case study. It was able to evoke the emotion of a large number of audiences who participated in purchasing the products. The first objective in the marketing plan of increasing market share, brand image and positioning was achieved. That was supported by the following findings found in the case study. The social enterprise reported that it was able to create 1500 new stocks lists once the project plan was implemented. A total of 1551, 000 Australians were reached that contributed to about 7.2 orders per day being done, with 24 new products being developed by the social enterprise. On the second objective in the marketing plan: to increase social support and partnership through project activities in helping the needy across the world. The findings from the case study showed that a total of $1, 439067 were given by the social enterprise to project partners for various social projects to support the needy. That showed that the objective was achieved by the organization.
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