Marketing Study on Portable Water Cooler

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Executive Summary

Breeze Waters will introduce a bottled water cooler that is portable and easy to bring outdoors and will provide cool/cold water anytime, anywhere. The product’s main feature is its portability. Bottled water coolers are mostly indoors and are place in a fixed spot in vicinity. Our product will take on the mobility of users as the target market will be professional athletes that are always on the go in their trainings and game tours, and other professionals whose work are mostly on the field and access to a cool/cold water is limited to stores and offices. We are also taking advantage on the health benefits of cold water as a daily human need.

The primary marketing objective is to achieve first year Philippine market share of one percent (1%) with unit sales of 1,000,000. The primary financial objectives are to achieve first year sales revenues of P5 million, keep the first year losses to less than 100000, and break even early in the middle of first year.

I. Situation Analysis

A water cooler is a device that cools water. It is generally broken up in two categories. First is the bottle-less or the point of use (POU) water coolers where the device is hooked to a water supply. Second is the bottled water coolers (BWC) that requires large bottles from vendors. In recent years, with increasing attacks from the environmental movement on bottled water in small plastic disposable bottles, water coolers has emerged an arguably the more environmentally friendly approach to dispensing bottled water.

Market volumes for water coolers are holding steady, despite difficult market conditions. Whilst the overall market was stable, figures showed an increased bias in favor of POU coolers as against BWC. However this decline for BWCs is expected to slow over the coming year. Market value in 2009 had decreased since the peak experienced in 2005 but still showing some growth taking as a whole decade since 2001. Philippines market for water coolers had developed slowly since the 1990s, but aggressive cut-price competition has resulted in very low margins that are insufficient to offer quality delivery service to the consumers. Consumers mostly in the public sector felt it was best for staff working in large offices to have ready access to water and for this reason BWCs can provide a more flexible option. In the private sector, too, smaller companies and those, for example on construction sites, who need ready supply of water, choose the bottled variety. However, current market has not yet considered providing cool/cold water to workers that are always on the go and does not stay in an office for a long period of time, through the use of a BWC. To gain market share, Breeze Waters will focus its efforts on a specific target market bringing in the feature of portability as a value to be created in a growing market of water coolers.

1. Market Summary
Breeze Waters’ market consists of professional fieldworkers (sales representatives, field auditors, surveyors, etc.) and athletes who are always on the go and seldom stay inside an office or a building.After being on a field for a long period of time, these consumers would like a drink of cold water especially during hot and humid temperatures, and would find it more convenient if a cool/cold water is readily available. Exhibit A shows how Breeze Waters addresses some of the most basic needs of the target market in a cost-effective manner. The additional benefits like temperature adjuster, being cordless, and chic design of the product just enhances its appeal to the identified segments.

Bottled water coolers are operated by either thermo-electric or compressor units. Thermo-electric units are silent and the most cost-efficient to operate but are not suitable for use in very hot environments. Compressor units, on the other hand, are extremely powerful and produce colder water, even in the highest temperatures. Both types can dispense cold, or...
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