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Project of the

KHUSH ABB Mineral water

A Project started by UOS in 2009

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PROJECT OF KHUSH AAB MINERAL WATER

SESSION (2012-2016)

PROGRAM

MASTERS IN BUSINESS ADMINSTRATION

SUBMITTED TO:

ABDULLAH IRSHAD SIPRA

SUBMITTED BY:

High Fliers

Group Members:

Maryam Ilyas Roll #03

Zara Ahmad Roll #06

Noshaba Aslam Roll #10

Sana Batool Roll #11

Rabia Ranjha Roll #17

Sheharyar Khan Roll #25

Danyal saleem Roll #27

Shahzad sarwar Roll #46

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DEPARTMENT OF BUSINESS ADMINISTRATION

Table of contents

Sr.No Page No1 Introduction 72 History 73 Plant visit 85 Market Analysis 86 Market of different share brands 107 Promotion strategies 118 Personal Analysis 149 Selling modes 15

10 Suitable selling options 1511 Innovations 15

12 Slogans 1613 SWOT 16

13 Synopsis 1814 Bibliography 2015 Appendix 21

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DEDICATION

We would like to dedicate this project to our vice chancellor and to our respected teacher who give us a chance to work on this project.

ACKNOWLEDGEMENT

We are thankful to Almighty ALLAH “most beneficent and the most Merciful” Who made us able to complete our given project successfully and for giving us much cooperation and supporting parents who has given us this opportunity to study here. We would like to thank sir Abdullah Irshad Sipra for giving us the confidence and opportunity to prove ourselves.

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AIM

Our aim is to make people aware about this product so that a person going to purchase mineral water should have already in his mind that he will buy Khush Abb mineral water.

Khush Aab Mineral Water Project

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Outline of project: Introduction History Plant visit Market Analysis Market of Different Share Brands Promotion Strategies Selling Modes Innovations Slogans SWOT analysis Synopsis Bibliography Appendix glossary

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Introduction of Mineral Water (Khush Aab) A Quality Product of UOS:

In Pakistan more than 80% population has not been provided clean drinking water, due to which many diseases related to water are in higher percentage as compared to other nations. In Sargodha region the underground water is highly polluted due to down flow of salts from the Salt Range as well as other minerals in that area. It is the reason that the maximum percentage of patients at Sargodha are suffering from kidney diseases as well as lever problems. Keeping in view the situation, a project was launched to provide safe and healthy drinking water with the name Khush Aab to the community.

History: Idea of this water plant was given by Dr. Saeed in 2006 and 2007. The basic reason is that the mountains around Sargodha have calcium carbonate in them, because, of this, underground water is contaminated.

The university started this project, they thought, they could carry it out with the available resources. It is situated in University of Sargodha, and it is a department of Pharmaceutical industry, and it is designed to install formulation of pharmaceutical industry in 2008. In 2010 a separate building allotted for this department, and it is takeover by Prof. M. Athar in 2010. Rs. 30 million funds have been allocated for this project, from which the equipments of Rs. 15 million were purchased. In Dec, 2010 Khush Aab was launched after the permission of respected V.C. In 2011 A good response get from the market, and now khush Aab produce 600 liter per hour. If we come to the legal aspect of it, this plant is in Khushab and they have the registration of it. In the main Sargodha no one has the registration certificate.

Plant Visit:

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We visited Khush Aab plant on 3/12/2012. Here we met Mr. Ather who gave us the presentation over the process of water purification. He told us that they use ozone for the purification of water. Their current production scale is 600 litters per hour which is sufficient to meet the present needs of the university area. In this plant they use manual system for the filling of bottles. We also saw the new site which is under construction and it would increase the production to the 5000 litter and would also be increased to the 10000 liter per day on requirement, this new site also include the mechanical system for the filling of bottles it will increase the efficiency and will also save time. He also told that they are not allowed to use free use of electricity as they are using government land and to use more electricity and employ 2nd shift for working they have to establish their own power plant so their plant is still under efficiency and they are not making proper use of the plant.

Market Analysis: For analyzing market first of all we got sample from university cafeteria 600ml bottles. And we went to the market and we visited different types of shops. When we reached stadium road and visited a shop named Rafique shopping center there we met owner of the shop name Muhammad Ejaz. We started questions to him according to Muhammad Ejaz they are selling nestle mineral water.

Shopes Names: Rafique Shoping center near stadium road:

They are selling nestle bottles of 600ml. they are ready to contribute with khush aab mineral water. They have no problem to contract with us for selling khus aab. They also give us order of two packs of 600ml and 1.5 liter. They sale 6 to 7 bottles weekly. They also complained that about one year ago some of university students gave us the supply of Khush Aab water but after that never come back. They also told us the seasonal problem of the shortage of requirement.

Decent sweet bakers in Rehman plaza: The name of owner Adnan shaib Sales nestle 6 pack of 600ml bottles weekly. Also found qurshy mineral water price 15 and sale price is 20. They also discuss us the seasonal problem of the shortage of sales. And they tasted the water of khush aab and liked the good taste of khus aab. They also agreed to contract with us.

Aqub Tuck shop in Rehman Plaza: The name of the owner Muhammad Naseer.

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Sold blu water of Multan purchase price 17 and sale price is 20. They also agreed to contract with us for sale of khush aab. They also gave us an order of one pack of small and large of 600ml and 1.5 liter bottles. The price of 1.5 litters is 29 and sale price is 35. The shopkeeper liked the packing of blu water instead of others.

Rehman marriage hall in Rehman plaza : We met manager Munir. They were not agreed with us. Because they had already contracted with aquafina so they couldn’t take Khush Aab water supply so, there is no market of khush aab.

Shangrila near university road: Here we saw two types of bottles nestle and Sufi mineral water. The Sufi pack is using only 6 litter jars and its price is Rs 90. And nestle bottle of 6 liter has the price of Rs 120. Their weekly sales are 50, 100, 200, and more packs of 600ml and 1.5 liter bottles. They were also agreed to contract with us. But they also told the seasonal problem.

Fri chicks near university road: We met supervisor named Aqab. They have contracted with kinley mineral water. All stock is transferred from the head office of Fri. chicks Lahore to its sub branches.

Cash and Carry:

Its owner Mr. Muhammad Islam said that we used to take the supply of kinley and nestle but we have our own water named crystal water a newly introduced in the city of Sargodha its plant is in old civil line and its price is Rs 17 for 600ml,1.5 liter Rs 30,6 litter Rs 85,He was confident that after few months our mineral water would occupy a distinct market share in Sargodha as they have already introduced extensive promotion schemes so with no time they would be able to capture customers for crystal water and once they have succeeded then they will leave the supply of other brands too.

Analysis:

Above all discussion we can say that there is a huge market of khush aab outside the university area. But only small shop owners are willing to take its supply but other renowned hotel and marriage hall owners are not willing to take it because according to them people don’t know about Khush Aab they only take the supply of famous brands because it’s the matter of their goodwill so first you make it aware to the people of Sargodha then we will be able to take its supply. We can sale and promote the khush aab not only district but also

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division and provisional level. In our market analysis we concluded that Crystal water will give it tough competition because it is also new and local product and have the same price as Khush Aab but they are offering many services and using extensive promotion schemes. We think it needs promotion to make a place in the local market.

Share of Different Brands in Sargodha Mineral Water market:

In the last week we’ve tried to get some information about the share of different mineral water brands available in the Sargodha. We met with Mr. Makhdoom in the Paris Plaza, he is the main distributor of Nestle, he said

Approximately 51% share is with the nestle in Sargodha Rest 49% is for other products This 49% share includes kinley 18%, Aquafina 11.6% And also there is a small share of some local brands like Blu,Sufi,Kisan,sparkle,white

19.4% etc.

51%

18%

12%

19%

market share

nestlekinleyaquafinaother local

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Promotion strategies: First of all as people are not familiar even with the name of the Khush Aab water so, first we should make people aware about it, we should make people aware that it is the product of their own city and a quality product so they should prefer it to other products. We should create a sense of loyalty among them to promote the product of their own city which after reaching the national level would represent their city. For creating awareness we can adopt following tools:

Through arranging business events. Through door to door sampling. Through targeting kids in schools and colleges. Through banners and neon signs. Through social and electronic media. Through Questioners. Through floating messages. Through official website.

Business events:

We have given first priority to the business events; we think that it would prove to be the most appropriate and beneficial for creating awareness among general public, distributors and other shop owners. In such business events you can invite general public and there would be direct contact to them, you can listen to their useful suggestions and can also solve their conflicts if they have any in their minds regarding its cost, quality and authenticity etc. In these events you will be able to answer their queries and can also do sample testing in a better way. For arranging such events we have chosen the three most popular and busiest public places of the Sargodha.

Chen one plaza. Al-Rehman plaza. Model mart.

Chen one plaza

Our group members met with the supervisor of the Chen one plaza Mr. Amjad Bukhari who appreciated us for such an initiative. He asked from us following questions.

What is the nature of the plant?

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Which floor of plaza would you like to choose? What will be the criteria of the event? How many organizers are there would be? What kind of services do you want from us? Sampling will be done or you want to do something else? He said that cost would be Rupees 7000 to 8000 per day but it’s not final.

Al-Rehman plaza

In Al-Rehman plaza he met with the supervisor of the plaza Mr.RanaKhalid. He also asked the above question from him also gave his suggestions that

You should have 400 to 500 bottles for sampling in this event. Only in charge of the project can organize the project but after the permission. If you people want to do advertisement we would also allow it. The cost would be rupees 7000 to 8000 per day but not final.

Model Mart

Model mart is the shopping and recreational place for families. Only in model mart we met with Mr.Naveed Hassan who is the supervisor of the model mart he said that they would provide us security, generator and electricity. Model mart is engaged in providing such services so there cost is very less and services are more than others. Their cost is rupees 300.so it would be the best option for such events.

Door to door sampling:

The best advantage of door to door sampling is that we can take direct feedback from the general public, we can also analyze the current market situation, we can see that which area people have potential to be our product’s regular customers and we can analyze well that where can Khush Aab water create its space in a better way and its future opportunities can also be analyzed but to do all these things a lot of human resources are needed. And also huge amount of investment is needed to distribute free samples.

Through targeting kids in schools and colleges: We think that in khush Aab water promotion campaign you should target kids like safeguard soap, it is just soap and kids are nothing to do with it but they only target kids for the promotion of their campaign and have occupied a distinct position among all soaps. So you can also promote the Khush Aab water by focusing on schools and colleges. In schools and colleges students should be made aware about the importance of using Khush Aab mineral water which is the quality product of their own city and they

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should feel proud of using it. With a little effort they can give a better and positive response.

Through opening their own outlets in Sargodha:

By opening their own outlets in different areas of city they can make a direct and effective contact with customers in these outlets they will just display Khush Aab water in this way they can save the profit which they have to pay the different intermediaries. Through these outlets they can also distribute their product to different retail shops of the city.

Through banners and neon signs:

We also think that its promotion can also be done by banners because in business events and door to door sampling we may not cover as many people as we can in banners and neon signs because these are displayed on the busiest roads where everyday hundreds and thousands of people come cross but it has only disadvantage that there would be no direct contact to general public and people cannot be loyal with using it but as Khush Aab water name is also to recognize among people so we can take it as 2ndoption. We have talked for banners to Al-Rehman plaza organizer he said that

One banner may cost Rupees 5000/- and can be displayed for four weeks.

Promotion through electronic media:

They can do promotion through different electronic media ways media has become so fast now a day so can be the best option to promote anything on a wide scale. You can adopt following electronic media ways on local level.

Radio: As university of Sargodha has its own radio station fm 98.2so can use it for the

promotion of khush Aab water. We have talked to the Mr Asad Munir at FM 98.2 he told us that they have already done 3 or 4 live shows for the promotion of Khush Abb water in the last 2 months and they have also on aired its adds free of cost before few months and now they are working on its promotion campaign which would be like surprise at first level for 15 days then it will be finally introduced. But they should at least once a week conduct regular programs in their prime time show “LOK REHTAL” to aware people and should also take live calls to listen the quarries of general public regarding it. They can also run their ads on the fm.They can conduct road shows for the promotion of

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khushabb water. The cost for the production of an add is Rs 1000 and after that Rs 30 for each 30 sec spot

Through cable network:

Now a day’s cable networks are very common and almost every house in the city avail this option as cable networks already have been involved in promoting many local brands and have done it successfully so it can be a good option to promote khush Aab water they charge Rs2500 per month for one add .

WRAP ADVERTISING:

Wrap advertising is a new concept in recent trends of marketing. (The advertising on the vehicles is called wrap advertising).

SOCIAL ELECTRONIC MEDIA: The most happening marketing trend these days is social electronic media. It includes:

Face book

1.Facebook:

Through facebook we can advertise by making the page of our product by bringing awareness to the people.Facebook profiles are more detailed than Twitter. They allow a product to provide videos, photos, and longer descriptions. Its also famous in Pakistan so can be used for the advertisement of khush Aab. On facebook they can make a page for their product. They Can make a free of cost page and can promote it on facebook.it would also be an effective step for making people aware about Khush Aab water.

Personal analysis:For the promotion of khush Abb water, initially there would be need of huge investment which will give benefits in long run as it is on its first level so it would take time to reach on the provincial or national level may be it would take more than 10 years to compete the international brands like aquafina,kinley and nestle on their level as for local level concerns it is possible to penetrate market within one year but for this a lot of efforts are required like increasing the production from existing level and consistent promotion schemes throughout the town are necessary. And its plant is on government land so they have to face some restrictions to commercialize it, it’s also an obstacle in its promotion.

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Selling Modes: There are two selling modes.

Direct selling mode Indirect selling mode

Direct selling mode:

In Direct selling mode goods are sold directly to customers rather than selling through intermediaries. The main advantages of selling direct are that there is no need to share profit margins and the producer has completed control over the sales process. But this mode of selling is usually suitable for products which have already occupied a market share and hence no need of intermediaries to find the market for the product.

Indirect selling mode:

In indirect selling mode goods are distributed through different intermediaries like wholesalers, retailer, etc.This mode of selling is best for new products as different market intermediaries know best about the market and can anticipate well the market for a new product by making contracts with them a new product can be placed in different areas of market and can get advantage of their experience. After getting much market direct selling mode can be adopted.

Suitable selling option for Khush Aab water: As Khush Aab is new in Sargodha market first they have to make contracts with different market intermediaries who will help in making market for this product they will guide that in which areas Khush Aab water demand can be created. After getting information about market they can choose direct selling mode to save cost and profit. In indirect selling mode they can establish their own outlets for the distribution of khush Aab water.

Innovations: Khush Aab water should introduce innovations, it may change the color of its packing which is blue and looks like nestle and other mineral water brands, it can use the green color of packing for global warming effects and in this way it will also show the social welfare and environment friendly product. It will be an effective step towards innovation and will also distinct Khush Aab water from others. The changed color will easily differentiate it from other

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brands. And the name of Khush Abb should be written in black color for making it more readable.

Slogans

Slogans for a product also indicates its aim and mission.khushAbb water slogan Healthy life for all is a good one but it should be such which would exhibit its auspicious aim of serving students. As university of Sargodha is a self financed university so for the smooth working of university and for providing quality education to its students they have to rely on its different projects, Khush Aab water is also such kind of project which would help students so, they should include their mission of serving students in their slogan for appealing public to use their product because people can be easily convinced if they are realized that it’s all about the quality education of their children. We have suggested following slogans for Khush Aab water.

Let’s help in making the future of students. You serve students, they’ll serve nation. It’s all about the health and future of your child. It will serve your child and hence your nation. Be a part of making the future of the students.

SWOT Analysis Of Khush Aab: Whenever a product is launched, it undergoes some challenges. Such challenges can be internal or external. Internal challenges are our weaknesses while external are the threats from outside environment.

Strengths Weaknesses Opportunities Threats

Strengths: The main strength of khush Aab water is that, this project is being supported

by Govt. Its price is cheaper as compared to other brands, available in the market. Moreover this brand was certified as the best which are available in the

market. Once its quality was challenged by nestle in Karachi, but Khush Aab has proven itself better than nestle.

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It is a local brand and people will support it on behalf of university of Sargodha.

Weaknesses: Its main weakness is that, till now all the work is manual, mechanical system

should be there to fasten the work. It has not taken any primitive measures to aware the people about the

product. Even in Sargodha people are not aware about its name and well-known shops are not willing to place it with the already well-established brands.

No innovations even its packing is similar to other competitors product Low productivity It’s new in market and up till now many of local and international brands have

captured the market. They have to face neck break competition.

Opportunities: Main opportunity this brand has, that they can launch it with the help of

students in the markets of different cities. Higher authorities can also urge other such universities to use their product. They can introduce their brand in the schools and colleges as it’s a venture of

university so student can be motivated to use the product of their city. It has low price but a better quality product.

Threats: Major threat to Khush Aab water project is that, it is a new brand it will take

time to place himself in the market. Secondly other major brands have captured the minds of people, especially

foreign brands, so being local brand it will take time to gain the trust of people.

It has to face tough competition from local brands especially from crystal water because it is also new with same price as Khush Aab but they are promoting it on large scale.

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Synopsis: Khush Aab water being the project of university of sargodha was started in 2009 and up till now they only market university canteens and people only in university can avail it but now our respected vice chancellor wants to commercialize and also interested in exploring a market for Khush Aab water not only in sargodha but also at provincial level, so keeping in view his mission we started work on this project. First if all we all visited plant on 3/12/2012.We met Mr.ather who made a speech on upcoming projects of khush aab water. We asked from him that why he didn’t think of advertising this product because people in Sargodha even don’t know the name of this product he said that according to 4 p’s of marketing product, price, place and promotion first we have to put our concern on first 3 p then we would be able to consider the last p. but we didn’t agree with him, they have production even a new site is also under construction which will doubles the existing production and they have handsome price of their product which is relatively less than other brands and they have placement within the university and according to him they are going to make a contract with national bank and they have also made a contract of selling 100000 bottles and outside university also some shopkeepers are ready to take the supply so they have placement but they are ignoring promotion at all.So in our project we’ve put our main concern on different promotion strategies that how can they make people well aware about the khush Aab water so that people should not buy it as the last option only at the time of need but we wish that a person going to purchase mineral water should have in his mind that he would buy the Khush Aab water.

So for this, first we’ve done market survey and analyzed that shop owners are willing to take its supply but other well established shop and hotel owners are not willing to take it because in their point of view Khush Aab needs to be recognized to the people first then they will be able to take its supply.

In this market survey we’ve come across through new mineral water local brand crystal water its plant is in old civil line Sargodha and they’ve also low price, they have their own outlet cash and carry in PAF and crystal bakery in university road but they are using extensive promotion schemes in which they’ve done free sampling etc.Their adds are running on fm 96 and they are using wrap advertising and bannering. In our point of view Khush Aab water has to face the competition from the crystal water.

But as Khush Aab water is the project of an educational institution so it would also be a positive aspect of their product, its quality is also approved by the PCRWR (Pakistan council of research in water resources) report in July 2011.

It has low price and so can create many opportunities in the city and can approach the common man after launching it properly at commercial level. they should also introduce their product in

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other educational institutes of Sargodha .once the students have been encouraged to use this product then they can be able to make a difference and occupy a distinct place among people and they can also win loyal customers as students in this way .they should also use radio and cable as promotion channel.

For creating difference from other brands we’ve suggested that khush Aab water bottle packing should be of green color it will differential it from other mineral water brands and its slogan which says Healthy life for all should be changed it’s a project of university of Sargodha which is self financed university they are using this project for financing educational activities of their university so they should have such slogan which can exhibit their this auspicious thought it can inspire people and can make a positive space in their mind for using this quality poduct.They can use slogans like

Let us help in making the future of students. you serve students, they’ll serve nation. It’s all about the health and future of your child. It will serve your child and hence your nation. Be a part of making the future of the students.

These are only suggestions which means that your slogan should depict your mission of serving the students.

It was all about our project we did our best to provide you with the best of information in your interest, our purpose was just to aware the people about the Khush Aab so we’ve just given suggestions for this.It was our first experience to work as a group so due to this project we’ve learned how to coordinate and assist each other which has given us ever lasting experience.In last I would like to thank my all group fellows who worked sincerely and did their best to cooperate with me.

Thank you very much.

Regards, Highfliers.

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Bibliography:

Prof. Muhammad Athar (Plant Manager)

http://www.nation.com.pk/pakistan-news-newspaper-daily-english-online/business/11-Jul-2011/PCRWR-declares-16-brands-of-bottled-water-unsafe

Our most of work is brain storming and includes only our suggestions.

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Appendix: In this project we’ve included some information about the PCRWR’s report which is showing khush Aab water as healthy water.Here is the detailed info of this report.

PCRWR declares 16 brands of bottled water unsafe: By: Our Staff Reporter | July 11, 2011 . 0 ISLAMABAD (APP) - Pakistan Council of Research in Water Resources (PCRWR) declared 16 out of 69 brands of bottled water unsafe though a large cross section of citizens was using bottled water due to poor quality of water.Out of these 69, 53 were declared safe. Besides this, number of chemically safe brands was 55 and number of chemically unsafe brands was 14.Due to low quality of water, mushroom growth of bottled water industry in the country is witnessed during the last few years. However, many of the mineral water companies were found selling contaminated water. Besides this, number of microbiologically safe brands was 67 while number of microbiologically unsafe brands was 2.According to official data, the brands which are continuously being sold in market are 35 while the brands which disappeared from market due to contamination are 16 and the number of brands which are available in market with new name is 34.According to officials in PCRWR, drinking water quality is deteriorating continuously due to biological contamination from human waste, chemical pollutants from industries and agricultural inputs.Piped water also gets contaminated because pipes are laid very close to sewerage lines or open drains and cause many serious water borne diseases.It was found that 45pc of infant deaths have been attributed to diarrheal and about 60pc to overall infectious waterborne diseases in Pakistan.According to the World Health Organization (WHO) 25 30pc of the diseases are gastro intestinal in nature. The survey was conducted in 16 cities including Islamabad, Rawalpindi, Lahore, Bahawalpur, Faisalabad, D.G Khan, Multan, Sargodha, Sialkot, Sahiwal, Peshawar, Quetta, Karachi, Nawabshah, These samples were collected by the senior staff members of head office and regional offices of PCRWR from January March, 2011.A set of four bottles of each brand was collected and sealed on site.Identification codes were also allotted to all the brands according to PCRWR Bottled Water Classification System.Brands declared safe by PCRWR were Nestle ,Kinely, Aquafina Springley, Well O, Natural Excellent, Kisan (Better Life), Minra, Khaleej,Aqua RO, Premier, Blu Water, Sufi, Avisa, Aqua Feen,Legend, Aqua Habib, Selina, Vital,Clear,Hydra, Life,Pak zam zam, Spring Fresh , Vey, Sun Lay, Jel, Marjan, Aqua Vie, Liza, A ONE, Tahoor, Aqua Hygienic,First Water, Ab e Hayat, Hydropsy,Kerry, Via,Neble, Khyber Aqua, Natural Aqua, Sparklet,Nectar, Splash Dew, Good Ly, Khush Aab, Gourmet,Morning Mist,Aqua Save and Al Shalal. Furthermore, Isberg, Eco Water, Aqua One were also found safe.