Professional Documents
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MISSION
“We attempt to convey precise and dependable
outcomes in the most ideal pivot time. The
opportunity from water-related issues and true
serenity for good wellbeing through our extensive
variety of human services items that convey
faultless measures of value and administration.”
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INTRODUCTION
PureFirst - Your piece of Trust
• We at PureFirst embrace the beauty of nature through our unique methodology which
involves Sand and Charcoal filtration technique before the process of Reverse Osmosis.
• Our water purification technology consists of charcoal, sand and coconut husk/shell for
purification for water and after that, we have used RO purification method accompanied
with UV and UF with added extra minerals.
• Our product body will be made of Hemp Plastic which is totally natural, eco-friendly and
biodegradable
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NEED FOR PRODUCT DEVELOPMENT
Source:
American Journal of Water Resources, 2015, Vol. 3, No. 1, 17-21 Available online at http://pubs.sciepub.com/ajwr/3/1/3 © Science and
Education Publishing DOI:10.12691/ajwr-3-1-3 6
New Product Development
We are focusing on launching well-equipped products with advanced water purification
technologies. We have done research & development activities to introduce water purifiers
equipped with reverse osmosis, ozone, ultra-violet, ultra-filtration, activated carbon, and
candle filtration technologies which is eco friendly as well smart connected. Moreover,
purifiers are installed with Bluetooth and Wi-Fi technology which will enable us to directly
gather information of the purifier. Our product PureFirst is tangible good with
accompanying services which is smart connected eco-friendly water purifier.
Increasing disposable income, growing industrialization, and high rate of pollution and
population growth in the developing countries boost the growth of the market. Improvement
in standard of living and growing concerns of health & wellness are expected to boost the
demand for water purifier market in future. Therefore, the water purifier market is expected
to witness rapid growth in the developing economies in future. 7
Threat to Us
Increasing Number of Unorganized Players
Several unorganized players operate in the water purifier market. They manufacture,
assemble, and sell water purifiers at competitive rates. These players primarily supply
purified water in the local markets and take benefit of the nonexistence of any certification
or quality norms.
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India Water Purifier Market
The market for water purifiers in India is expected to expand at a CAGR of 14.5% between the forecast
period 2017 - 2025.
• Over the last few decades, India has been facing significant challenge of resolving the issue regarding the
availability of safe and pure drinking water to its huge population, especially when it has only 4% of fresh
water available.
• According to the recent statistics published by the World Bank, over 75% of the communicable diseases
in India are water related. In order to address these challenges, the Indian government is investing
substantial amount in water infrastructure development and taking initiatives to raise the awareness
regarding health risks.
• The water purifiers market in India is highly consolidated. The top 4 manufacturers account for over 66%
of the overall market revenue.
• The Indian market is characterized by the presence of good mix of international and domestic brands.
• India being a price sensitive economy, manufacturers are focusing on developing low-cost variants and
improving their product reach. Thus, low cost water purifiers are making inroads in both urban and rural
markets through either conventional distribution channels or through non-government organizations.
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PESTEL ANALYSIS
Environmental Factors Legal Factors
• Less water wasted in purification process. • Consumer law
• Saves energy and electricity during the process of • Health and Safety law
purification. • Employment law
• Import/Export law.
• ISI mark certification by BIS.
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COMPANY ANALYSIS
Core competence:
• Company is providing smart connected eco-friendly water purifier consists of charcoal,
sand and coconut husk/shell for purification for water and after that, we have used RO
purification method accompanied with UV and added extra minerals.
• Our product body will be made of Hemp Plastic which is totally natural, eco-friendly and
biodegradable
Our water purifier is inbuilt with Bluetooth, which will connect with our PureFirst app
available for Android and iOS which will synchronize data from purifier and through app
any discrepancies will be reported to our customer solution Centre and will be immediately
resolved.
ABOUT COMPANY
Company is engaged in one line of business at present and for financial activities funding
from investors, loan from bank, NBFC and from schemes by government through which
funding are provided to start a business is taken to operate the business
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COMPETITOR ANALYSIS
Competitor Name Kent Aquaguard Hul Pureit
Over 50% water recovery. Save waste The taste modulator lets you set the Adds minerals post purification
Competitive water in different tank taste as per preference
Advantage
Target Market Urban and semi urban areas Urban and semi urban areas Urban and semi urban areas
Pricing and Costs Rs. 8999 to Rs. 22999 Rs. 11999 to Rs. 28999 Rs. 8999 to Rs. 25999
HUL PUREIT Chemical free purification. Separate dispensing tap for hot
and cold water.
CUSTOMER ANALYSIS
• As the population of Patna is 27.79 lakhs so those are our potential customers and that market is our
potential market.
• Water purifier market is segmented on the basis of technology, end-user, channels of distribution and
geography. Segmentation on the basis of technology includes gravity purifier, UV purifier and RO
purifier. RO water purifiers are projected to be the fastest growing segment during the forecast
period, owing to the increase in water pollution and rapid urbanization & industrialization.
Moreover, RO water purifier segment is also expected to exhibit lucrative growth opportunities in
future. Based on the end-user, the segmentation includes commercial and residential users.
• Further, market segmentation on the basis of channels of distribution includes retail stores, direct
sales and online. Geographically, the classification includes Urban, Rural and Semi-urban Area.
• Our primary target audiences are families with young children who are most prone to water-borne
diseases, Hospitals, clinics, schools and government sectors and health care agencies and
industries which use mineral water in manufacturing their goods. Our secondary target audience
Small Children basically infants, teenagers, Shopping Malls and other non-Government sectors.
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CUSTOMER VALUE HIERARCHY
CORE
BENEFIT Purified water
BASIC
PRODUCT
R.O.
EXPECTED
PRODUCT U.V. + U.F.
• User friendly smart connected water purifier (Inbuilt • Limited start-up cost and production capacity
Bluetooth and Wi-Fi) • Limited flexibility in pricing
• Solar charge operating (Photovoltaic cell) • Relatively unknown name in industry having less
• Eco-Friendly Purification (charcoal, sand and coconut market
husk/shell) • Varieties of substitutes, including bottled water
• We are committed to providing a product with good • Late entrant - Reactive to competition
services and good consumer relationship.
• Eco-friendly.
OPPORTUNITIES: THREATS:
• Affiliate relationship with related vendors • Competitors can offer similar products easily
• Rising income, change in lifestyle • Products are already sold by major competitors
• Media exposure to diminishing Water Quality of Patna • People prefer purified water by unorganized
• Increasing impurities in Water players.
• Increased health awareness in our major target • A large number of unorganized players nearly in
audience every region of Patna
• Less number of organized players in the rural market • Introduction of new innovation in technology
• Introduction of new innovation in technology 18
Segmentation :
Water purifier market is segmented on the basis of technology, end-user, channels of
distribution and geography. Segmentation on the basis of technology includes gravity purifier,
UV purifier and RO purifier. RO water purifiers are projected to be the fastest growing segment
during the forecast period, owing to increase in water pollution and rapid urbanization &
industrialization. Moreover, RO water purifier segment is also expected to exhibit lucrative
growth opportunities in future. Based on the end-user, the segmentation includes commercial
and residential users.
Further, market segmentation on the basis of channels of distribution includes retail stores,
direct sales and online. Geographically, the classification includes Urban, Rural and Semi urban
Area.
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Segmentation :
Our market segmentation depends upon factors namely
Technology Segmentation: We mainly focus on the customers who are interested in using smart
connected eco-friendly water purifier, gravity purifier, UV purifier and RO purifier.
Geographic Segmentation : we are looking to sell our product within the radius of Patna.
Demographic Segmentation: PureFirst sells different water purifiers on the basis of classifying
their utility and price affordability. Looking at price sensitiveness of the consumers we are
offering two variants of our product, namely Classic and Neon.
Our value proposition fulfil the need of consumers at affordable price. Having entered the
premium segment with PureFirst Neon, there are chances of it bringing out more upgraded
products with increasing price to cater to higher income group.
TARGETING
Primary Target Audience
• Our main target will families with young children who are most prone to water
borne diseases.
• Hospitals, clinics, Schools and Government sectors and health care agencies
• Industries which use mineral water in manufacturing their goods.
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PRODUCT POSITIONING STRATEGY
High
PureFirst
• RO Filters • RO Filters
• Charcoal Filter • Charcoal Filter Product Depth
• Sand and coconut husk/shell • Sand and coconut husk/shell
Filter Filter
• Sediment Filter • Sediment Filter
• App Connect • App Connect
• Wi-Fi
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Our product Variants:
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Classic Model Neon (Premium Model)
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PRICING STRATEGY
Other
Competitors
Our pricing strategy depends on
PureFirst
Neon Model
We have markup pricing strategy.
We have competitive pricing.
This competitive pricing matches very well Perceived Value
with its superior value and hence the HUL Pureit ₹8999
PureFirst
customers get the right value for money
₹8599
products from PureFirst.
Classic Model
Price varies for a different variant
(Depending on the sizes).
Pricing will be Convenient for every COGS
consumer
Pricing Meter
Variable cost = ₹1000(Per RO)
Fixed cost = ₹1800(Per Filter)
=₹1100(Per extra filter)
Machinery = ₹35,00,000 = ₹2400(Per body)
Building = ₹10,00,000
Outlet + Service Expense = ₹ 5,00,000 Per Piece Variable cost = ₹6300/=
Vehicle = ₹ 4,00,000
₹54,00,000 Unit cost = Variable cost + fixed cost
Promotion = ₹5,00,000 unit sales
= ₹57,00,000
₹ 6300 + ₹570000/10,000
= ₹6870
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Target Return Price
Break-even Volume
= fixed cost/(price – variable cost)
=₹ 57,00,000 / (₹8599– ₹6870)
=3297
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PRODUCT PRICING
PRODUCT DIRECT SALES RETAILERS
Profit earned by us after selling is 20%, profit earned from retailers is 10% and they will earn
a profit of 11.23% after selling product to customer.
Our target return price is ₹ 6894 and our break even volume is 3297 units then we can able to
generate profit for next 6703 units.
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MARKETING CHANNEL
Successful Value Creation Need Successful Value Delivery.
We follow two types of marketing channel, 0-level and 1 & 2-level.
CHANNEL MAP
Manufacturer Manufacturer
Distributor
Through our
Own Service
Retailer
Consumer Consumer
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0-level Marketing Channel
PureFirst Products will be available at our customers through our own service
agent by Online booking or by throughout city at different places.
Every product manufactured by PureFirst are available through our own service
agent (Door to Door selling) but we have selective range of area throughout city.
To avoid local competition and gain profit prices are cut down by directly selling to
consumer rather of travelling the whole supply chain.
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1-level & 2-level Marketing Channel
PureFirst Products will be available at different shops including different mega mart
of city.
Through this channel of marketing we didn’t directly deal with our consumer so we
have distributor and retailers to deliver our product to consumer.
In term of benefit we provide our service agent will look after the installation system,
display sign broads etc.
In this pricing strategy of our products differ as we have to offer some profit to retailers
also. To avoid competitions we focus on increasing customers rather than gaining
profit in initial stage.
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INTEGRATED MARKETING COMMUNICATION
For establishing a good integrated marketing communication we first need to identify the target
audience .
Target Audience :
We have targeted the families with young children who are most prone to water borne diseases,
Schools, Hospitals……
Communication Objective :
Our objective is to fulfil the desire of pure water of our customer.
Our tagline : “Your piece of Trust”.
The Advertisement would be created in a fragmented way to arouse interest of the Customers
so the Customer Curiosity could be targeted and could be converted into information search
about our product.
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Marketing Communication Strategies
Mixed Strategy
Through Rest of
For Primary the Year
Promotion Period
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Advertising Media For PureFirst
Traditional
Advertising Media
Newspapers New
Magazines Advertising Media
Television Internet
Banner ads
Interactive video
Tv shows
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PROMOTION STRATEGY
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Marketing Budget
Item JAN FEB MAR APRIL MAY JUNE JULY AUG SEPT OCT NOV DEC
MARKETING 10000 10000 10000 20000 10000 10000 10000 10000 10000 20000 10000 10000
PROMOTION
Print advertising 5000 5000 10000 10000 10000 10000 10000 5000 20000 20000 10000 5000
Online advertising 5000 3000 3000 3000 3000 3000 3000 3000 3000 8000 8000 3000
TOTAL 50000 43000 37000 164000 54000 54000 44000 28000 63000 198000 49000 24000
Total : ₹8,08,000.00
Estimated Cost
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MARKETING MIX
Product
PureFirst is smart connected eco friendly water purifier. PureFirst embrace the beauty of
nature through unique methodology which involves Sand and Charcoal filtration technique
before the process of Reverse Osmosis. Our water purification technology consists of
charcoal, sand and coconut husk/shell for purification for water and after that, we have used
RO purification method accompanied with UV and added extra minerals. PureFirst water
purifier is inbuilt with Bluetooth and Wi-Fi which will connect with PureFirst app available
for Android and iOS which will synchronize data from purifier and through app any
discrepancies will be reported to our customer solution centre and will be immediately
resolved. Our product PureFirst is tangible good with accompanying services
Price
PureFirst has markup pricing and competitive pricing strategy which is an advantage in its
kitty. This competitive pricing matches very well with its superior value and hence the
customers get the right value for money products from PureFirst. Price varies for a different
variant. Depending on the sizes.
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MARKETING MIX
Place
As we have focused on Patna and its nearby locality, our channel participants would involve:
We will directly sell our product to the consumer through the door to door selling and if
they order directly to us in our promotional events. PureFirst products will be sold
via dealers and installation for the products will be provided by PureFirst service agent.
Products will be also sold via modern retailers as well as through online channel. We will
use push strategy and has strong incentives for any dealer or employee who sells the
maximum. This will ensures that there is always growth in PureFirst.
Promotion
Our sales strategy consists of sales people from door to door to create a strong brand.
Because of personal sales man being present, we will able to handle service very well and
also received many feedbacks for its products. We will also use digital medium of marketing,
as the selling agents faced problems to tap the customer base of gated communities. So we
will give newspaper ads, helpline numbers and TV ads. PureFirst will relies on direct selling
agents as our core strength.
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MARKETING MIX
People
Our Service agent will be well trained for installation to fulfil the requirement for installation.
Our sales agent will be trained to handle customer relationship. We will recruit enough staffs
to handle orders and will train our staffs about our product and installation process and
maintenance so that they become able to provide quality service to the customers.
Process
The idea of PureFirst “Your Piece of Trust” , all the process involved from production to
installation of product will be transparent. All system will be up to date and we will ensure
the consistency of services. We will strictly monitor the whole process of manufacturing to
ensure consistency and quality for the customer through well-planned, well-programmed and
automated processes. For customer relationship management, we will provide a toll-free
number to our consumer. For successful sales management, we will use keep up-to-date
information regarding distribution and motivate our sales agent, installation technician and
channel members to have active participation.
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