Marketing Plan

[Date of Submission]

Management Summary

The product we are introducing is Nestle Splash. It is flavored bottled water which will be positioned as a beverage. We aim to fulfil the dietary need of a typical urban youngster in addition to providing them taste. The beverage and the bottled water industry have experienced an upsurge and have become highly competitive especially with the sudden popularity of energy drinks and fruit juices. However, our product is unique. It is nutritious, hip and healthy. We intend to combine the four marketing mix elements to communicate value to the customers. Although the price for this product will be affordable for an average urban youngster but it is a higher value item in the Nestle product line. It would also be in line with soft drinks. The product will be placed at all major general and superstores through the same distribution channels as other products of Nestle. The product will be promoted heavily to familiarize the customer with the new concept of 'Flavored water' and create a strong demand for it.

Economic Projection

The projected sales for year 1 will be 360,000 units, that is 100% approximately, because of its wide consumption nature and taste. Revenue of the first year will be $540,000, in accordance to the assumption of average revenue amount per unit.

The breakeven point is expected to arrive at the sale of 236,250 that is at the revenue of $354,375, the break even volume is expected to be met by the end of the eighth month, if an average of 30,000 units are sold in each month, after the launch of Nestle Splash.

Until the sale of 230,000 units Splash is to encounter losses but as soon as the breakeven point is met that is as mentioned above by the end of the eighth month, the profits are expected to incur.

Market Analysis

Product:

Splash offers its customers with the height of taste satisfaction according to their taste of thirst. It is available in four refreshing flavors for the university students and other teenagers. Splash has an image of purity and taste with the blend of health.

The four flavors can be categorized as:

Market profile, Positioning and positioning map:



Positioning:

Since Nestle is positioned in the minds of the customer as a nutritious and unique brand therefore we aim to position Nestle Splash in conformance to the company's strong brand image. According to the Positioning map, soft drink companies such as both coke and Pepsi are high in prestige and low in health benefits and nutrition. Pepsi has a higher brand image than coke. In the fruit juices category, Barbican has a high image and nutrition while Nestle Splash has a superior brand image worldwide and also conforms to high nutritional value (Wang et. al, 2008).

Pricing

The price will neither be below competition nor premium. It is based upon the going rate pricing strategy. It has been set to position the image of Splash in the minds of the consumers and is in conformance with Nestlé's pricing policy, which is of giving ...