Marketing and Strategic Consultancy for Water-Bottling Factory

This presentation provides an overview of the Saudi Bottled Water sector landscape, strategic insights, opportunities, and marketing strategies for a water-bottling factory. It includes SWOT analysis, implementation plan, budget, revenue expectations, and recommendations.

Water-Bottling Factory’s Marketing
and Strategic Consultancy
Student Name:
Student ID:

Overview of the Presentation
• Introduction
• #Question 1: A brief assessment of the Saudi Bottled
Water sector landscape. What are the key strategic
insights/ opportunities? Strategic Choice
• #Question 2: Would you advice our client to invest in this
sector?
• #Question 3: What will be your strategic choices (e.g.
which geographic areas, target customer segments,
product category, stages of value chain, distribution
channels, geographical areas will you play in)? Why?
• #Question 4: How do you plan to win (e.g. differentiation
vs cost leadership/ focus, operational excellence-customer
intimacy-product innovation/leadership, etc.)? Why?

Overview of the Presentation
• #Question 5: What will be your marketing strategy (target segment
understanding, 7Ps, communication plan & budget, etc.)?)? Why? What
communication platform would you recommend (e.g. health platform?
Vitality platform? Etc.). Why?
• #Question 6: What will be the implementation plan & what will be the
required budget?
• #Question 7: What will be the expected revenue pursuing the above
strategy?
• #Question 8: If the client does not approve your above strategy because
he does not want to pursue the strategic choices you made, & if he wants
to hear from you an alternative route, how would you change your
strategic choices in question 3? How would your marketing strategy
change? Just highlight the key areas of differences with solid examples,
NO NEED to develop full, alternative marketing strategy.
• Recommendation and Conclusion
• Reference

Introduction
• Setting up water bottling Company in Saudi Arabia offers
immense opportunities.
• Strategic choices for the new Company’s entry needs to
be determined.
• Communication and marketing plan has to be ascertained

Introduction continued….
• The kingdom is the largest consumer of
desalinated water worldwide with sales
increasing during the summer, Ramadan,
aumrah and Haj seasons due the hot
weather at least for the coming five years.
• Bottled water drink consumption per
capita is high.

Introduction continued….
• Bottled water value sales forecast annual
growth is increased due to
▫The growth in the population,
▫Increased awareness of the importance of
drinking clean and safe water

Introduction continued….
• With expected bottled consumption of
water forecasted to rise, more and more
industry players especially from food and
beverage industry is entering this market.
The below graph depicts a rising
consumption pattern of drinkable bottled
water.

#Question 1: A brief assessment of the Saudi Bottled
Water sector landscape. What are the key strategic
insights/ opportunities?
• Political Factors: The government in is supportive of any
businesses that are being established.
▫ limited political intervention allowing businesses to operate
easily.
• Economic Factors: The government is providing impetus for
establishing and promoting growth private business and
entrepreneurship to deal with unemployment related challenges.
• Social Factors: Young population, who can easily be employed,
is present in the country. Once the water bottling plant is
established it can easily attract youth to work at the factory.

#Question 1: A brief assessment of the Saudi Bottled
Water sector landscape. What are the key strategic
insights/ opportunities?
▫Technological Factors: Saudi Arabia is technologically
very advanced.
 The water bottling company can easily extend its products
through online platform once it has established logistics chain.
• Legal Factors: There are labor laws and employment laws in the
country are very stringent and companies needs to adhere to
them.
• Environmental Factors: Environmental consciousness is
increasing within consumers around the world.
 It is necessary that the water sourced for water bottling
company does so in a sustainable manner.
 The Company for its consumers can obtain necessary ISO
certification to conform to environmental norms and standards.

#Question 1: A brief assessment of the Saudi Bottled
Water sector landscape. What are the key strategic
insights/ opportunities?
• Bargaining power of buyers: Presence of large number of
water bottling companies which provides mineral or
drinkable water provides immense choices to buyers.
Bargaining power of buyers is considerably high in Saudi
Arabia.
• Bargaining power of Sellers: Bargaining power of
suppliers is considerably stable in the market. Due to
prevalence of number of suppliers there is relatively less
power exerted. Suppliers comprises of suppliers of parts of
water bottling plant.

#Question 1: A brief assessment of the Saudi Bottled
Water sector landscape. What are the key strategic
insights/ opportunities?
• Threat from New Entrant: Threat from new entrant within the industry is
considerably high due to the attractiveness of the industry. Once a stable retail
chain of business is established, then there is tremendous revenue and
profitability to be gained out of such businesses.
▫Industry Rivalry: Water bottling industry is an extremely competitive
industry throughout the world.
▫ In Saudi Arabia bottled water is consumed by approximately every
household, therefore it comprises being a lucrative business.
▫Presence of international as well as national players make industry sphere
extremely competitive.
•
▫Threat from Substitution: Bottled drinking water substitutes are
drinking beverages and fruit drinks.
▫There is significant substitution power exerted on water bottling business
as innovation in beverage industry is high.
•

Internal Company Assessment
Strength
1. Market Research
2. Financial Capability
Weakness
1. Lack of market
experience
2. Unavailability of ready
supply chains
SWOT
Opportunity
1. Absence of national
stiff competition
2. Prevalent of large
market scopes to
expand business
Threats
1. Presence of large
number of international
competition
2. High cost in attracting
venture capital

#Question 2: Would you advice our client to invest in this
sector?
• Based on the previous analysis:
▫It is prudent to invest in the sector due to existing
demand and expected demand of bottled water.
▫One time investment and lifetime opportunity to
expand the business in various areas or landscape.
▫Availability of disposable income for health
purposes, especially water.
“Analysis of external analysis and industry level analysis provides that the industry
offers tremendous opportunities. In case an entrepreneur makes investment in this
market, then there will be high opportunities of establishing and developing
potential target market. The entrepreneur can reap significant advantages from the
market as water is a basic necessity for life”

#Question 3: What will be your strategic choices (e.g.
which geographic areas, target customer segments,
product category, stages of value chain, distribution
channels, geographical areas will you play in)? Why?
• Bottled drinking water is the most essential product
that is sought after in any part of the world.
• Low levels of salinity in soil levels have given further
impetus for establishing the business.
• Choice of target market must be understood such that
the Company can devise appropriate marketing
strategies for the same.
• The entire area in Saudi Arabia needs to be
segmented so as to be able to understand target
customer market.
• Then only a value chain and appropriate distribution
channel can adequately be a proportioned.

#Question 3: What will be your strategic choices (e.g.
which geographic areas, target customer segments,
product category, stages of value chain, distribution
channels, geographical areas will you play in)? Why?
• Geographic Segmentation –Cities in Saudi Arab will be
targeted as in cities people are greater health conscious
and have greater propensity to spend.
▫ The Company will be based near Riyadh hence it will
have road access to all nearby cities, towns and other
areas.
▫ As the company will be a start-up it will initially focus
on parts of Saudi Arabia itself. Later it might aim at
enhancing its supply to nearby countries by developing
markets.
•

#Question 3: What will be your strategic choices (e.g. which
geographic areas, target customer segments, product
category, stages of value chain, distribution channels,
geographical areas will you play in)? Why?
• Target Customer Segment:
▫Analysing market segment of customer
present, it can easily be understood that all
the big cities of Saudi Arabia can be
targeted initially for the product offering by
the Company.
▫Moreover, retail marketing for the product
across individual households (which
earning more than 2000 USD per month),
offices and commercial spaces needs to be
done.

#Question 3: What will be your strategic choices (e.g.
which geographic areas, target customer segments,
product category, stages of value chain, distribution
channels, geographical areas will you play in)? Why?
▫ The new Company will follow product category similar
to its competitors.
▫ Namely it will start its business by offering packaged
drinking water in 1 liter bottles and 20 liters jars.
▫ Later the Company can use the same plant for bottling
other types of beverages such as flavored drinking
water.

#Question 3: What will be your strategic choices (e.g. which
geographic areas, target customer segments, product
category, stages of value chain, distribution channels,
geographical areas will you play in)? Why?
• Stages of water bottling process:
▫The bottled drinking water will have stages
of process as the following :
Extract
water from
sources
Water
Treatment
Water
Filtration Bottling Distributio
n

#Question 3: What will be your strategic choices (e.g.
which geographic areas, target customer segments,
product category, stages of value chain, distribution
channels, geographical areas will you play in)? Why?
• Stages of Value Chain:
▫ Like most manufacturing companies, the bottled
drinking water Company will have stages of value chain
in two phases namely primary activities and support
activities.
• Technical Skills
• Logistics-Inbound and Outbound
• Coordination between inbound and outbound processes
will be able to generate value for the business.

#Question 3: What will be your strategic choices (e.g. which
geographic areas, target customer segments, product
category, stages of value chain, distribution channels,
geographical areas will you play in)? Why?
• Distribution Channel:
▫The Company will make use of direct sales
technique for marketing and sales of its
products.
▫Will also make use of retail channel sales
technique by keeping available its bottled
water at various shopping complexes.

#Question 4: How do you plan to win (e.g. differentiation
vs cost leadership/ focus, operational excellence-
customer intimacy-product innovation/leadership, etc.)?
Why?
• Cost Leadership of Products
• Best Quality at affordable Price
• This process will allow the company have
brand acceptance.

#Question 5: What will be your marketing strategy
(target segment understanding, 7Ps, communication
plan & budget, etc.)?)? Why? What communication
platform would you recommend (e.g. health platform?
Vitality platform? Etc.). Why?
• Product: 1 liter / 20 liter jars
• Price : SAR 12 / SAR 20
• Promotion: Traditional & Contemporary Approach
• Place-Direct, Retail and Corporate distribution
• People-Highly trained
• Physical Evidence – Office and Plant in latest
state of art
• Process-Six Sigma
• Such mix will allow to attract maximum possible
customers.

#Question 6: What will be the implementation plan & what will be the
required budget?
• KPI: Cost Leadership of 1 liter / 20 liter
jars
• KRA: Marketing and efforts to excel water
filtered qualityBudgetary Heads Amount (SAR)
Land 2,00,000
Plant and Machinery 1,50,000
Employees and Staff 36,000
Trucks and Vehicles 1,00,000
Total 4,86,000

#Question 6: What will be the implementation plan &
what will be the required budget?
TimeLine
3 months 6 months 9 months 12 months 15 months 18 months
Product
Proposal
Fund
Acquisition
Plant
Planning &
Designing
Staff
Acquiring
Product
Testing
Marketing &
Promotions

#Question 7: What will be the expected revenue
pursuing the above strategy?

#Question 8: If the client does not approve your above strategy
because he does not want to pursue the strategic choices you made,
& if he wants to hear from you an alternative route, how would you
change your strategic choices in question 3? How would your
marketing strategy change? Just highlight the key areas of
differences with solid examples, NO NEED to develop full, alternative
marketing strategy.
• Focus Strategy: Focus on suburban of
Saudi Arabia
• Low income group target
• Rural area household target by bringing
awareness

Recommendations
• Promotional Strategy
• Innovative Products
• Market Penetration
• Expand business to international
emerging markets

Conclusion
• Analysis of the business case reveals
prevalence of huge opportunity for water
bottling business in Saudi Arabia.
• Entrepreneur needs to obtain necessary
funds and invest it carefully so as to reap
maximum possible benefits.

Reference Lists
• Baker, M. J. (2014). Marketing strategy and
management. Macmillan International
Higher Education.
• Doole, I., & Lowe, R. (2008). International
marketing strategy: analysis, development
and implementation. Cengage Learning
EMEA.
• Graham, H. (2008). Marketing strategy and
competitive positioning. Pearson Education
India.

Thank You

Any Questions?