Masters of Business Administration

Group Assignment: Entrepreneurship & Small Business Management

Title: BUSINESS PLAN OF ALL SPRING WATER

Group ONE members Name

1. Alemadis Sisay Koye

2. Bezawit Mehari Molla
3. Birhanu Mihretu Hunegnaw
4. Dagnaw Tilahun Yesgat
5. Habtamu Alebachew
6. Melat Kebede Abreham

Submitted to Biniyam F. (PHD)

Addis Ababa

Summited date, May 2023

 Business Plan

Table of Contents
1. Executive Summery...........................................................................................................................1

2. Situational Analysis...........................................................................................................................3

2.1 SWOT Analysis.......................................................................................................................3

2.1.1 Strengths..............................................................................................................................3

2.1.2 Weakness.............................................................................................................................4

2.1.3 Opportunities.......................................................................................................................4

2.1.4 Threat...................................................................................................................................4

2.2 Internal Analysis..........................................................................................................................5

2.3 External Analysis.........................................................................................................................5

2.4 Competition.................................................................................................................................6

2.5 Critical Issues..............................................................................................................................6

3. MARKETING STRATEGY.......................................................................................................................7

3.1 Mission........................................................................................................................................7

3.2 Vision..........................................................................................................................................7

3.3 Product Need...............................................................................................................................8

3.4 Sufficient Customer Base............................................................................................................8

3.5 Profitability..................................................................................................................................8

3.6 Management Expertise................................................................................................................8

3.7 Adequate Capitalization...............................................................................................................9

3.8 The target markets.......................................................................................................................9

4. Marketing Objectives........................................................................................................................10

4.1 The marketing mixes.................................................................................................................10

4.2 Product.......................................................................................................................................11

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4.3 Price...........................................................................................................................................11

4.4 Distribution................................................................................................................................11

4.5 Promotion..................................................................................................................................11

4.6 Brand and Product development................................................................................................11

4.7 ASSESSMENT OF RISK………………………………………………………………………………..11

5. FINACIAL PROJECTION............................................................................................................13

5.1 SALES FORECASTS................................................................................................................13

5.2 Budget.......................................................................................................................................16

6. Implementation and Control..........................................................................................................17

7. Contingency plan.............................................................................................................................16

8. References.........................................................................................................................................18

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1. Executive Summery
This is a marketing plan for Natural Mineral Water Branded by the Name of ‘’All-Natural Spring
Water” that will be located in Oromia National Regional State, Oromia Special Zone Sululta
Town.

The drinking –water need for individual vary depending on climate, physical activity and body
culture. But for average consumers it is estimated to be about two to four liters per day. The
growing numbers of cases of water Born diseases, increasing water pollutions, increasing
urbanization, increasing scarcity of pure and safe water have made bottled water business just
like other consumer items.

The SWOT analysis of the company which shows the strength, weakness, opportunities and
threats created by internal factors i.e. company culture and image, organizational structure, staff,
operational efficiency and capacity, brand awareness, financial resources, market and external
Factors (trends, suppliers, partners, customers, competitors, new technology and economic
environment)

In order to win our competitors, such as Yes, Arki, One, Aqua Addis, gold etc., we will use high
technology, efficient distribution and target customers. We have to pay close attention to
promote our new product continuously through TV, Billboards, websites and social media as a
means of advertisement and promotion.

The marketing strategies including target market recycle plastic bottle, positioning and strategies
including product, customer and increase profitability by designing strategy that enables us to
produce and sell the product at lower cost than our competitor through exploiting economies of
scale and hi-technology.

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The marketing Objective deals with the changes that can be brought about to introduce the new
product, packaging, distribution, pricing and communications mix (Product, price, promotion
and placement.)
Total first-year revenue for All bottled water is projected at Birr 80 million, based on sales of
5,200,000 units at an average wholesale price of Birr 10 for ½ litter, 1,500,000 units at an
average wholesale price of Birr 15 for 1 litter and 2,400,000 units at an average wholesale price
of Birr 20 for 2 litters. We anticipate first-quarter sales of Birr 8million, second-quarter sales of
Birr 15 million, third-quarter sales of Birr 20 million, and fourth-quarter sales of Birr 30 million.
These projections assume cumulatively higher business sales and a spike in year-end consumer
sales. Finally, The Company will have the marketing total budget plan of Birr 7.5 million with
the contingency plan of Birr 1 million for any adverse occurrence from the original plan.

Finally, Implementation and control are very important part of our marketing plan for the
successful completion of marketing activities that helps us to achieve our goal. The proper
implementation of the plan will be controlled through measuring marketing budgets, profitability
and market share.

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2. Situational Analysis
A situational analysis often is called the foundation of a marketing plan. A situational analysis
includes a strict examination of internal and external factors affecting a business. It creates an
overview of the organization that will lead to a better understanding of the factors that will
influence its future.

To take advantage of this expanding market for bottled drinking water, All Bottled Water has
been established to supply bottled water to Addis Ababa and the surrounding and all other areas
of Ethiopia. The demand analysis shows that bottle water is a product needed by all age, income
and gender groups. This market plan is based on providing consumers with a high quality, high
content of minerals bottled water. It will be offered in attractive package in different size of ½ Lt,
1Lt, 2Lt and fountain Jar. Our product will be distributed to Supermarkets, Hotels & Restaurants
and retail shops through our sale agents. As a result, our product’s quality and test deliver more
benefits than most competing units. As a new brand creating awareness or imagery in the mind
of consumers might take sometimes. But premium quality product and professional sales forces
along with intensive promotion will play critical role in creating this brand awareness.

2.1 SWOT Analysis

A SWOT profile is used to create goals, strategies and implementation practices. It aids in
decision-making across the organizational board and creates an understanding of the
organization. The four categories are used in relation to one another. For example, a business
may decide to build up a weak area to pursue an upcoming opportunity. A SWOT can be used in
problem solving, future planning, product evaluation, brainstorm meetings, workshop sessions,
etc.

2.1.1 Strengths
 Experienced, talented and professional staff in every aspect of our business.

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 Innovative production methods that provides high quality

 Environmental friendly plastic bottle packaging (it uses recycled bottles)
 Ability to meet customer’s particular needs like home delivery for reasonable
quantity, events delivery like weeding, meeting graduation and etc.
 Latest technology and efficient machineries will be used.

2.1.2 Weakness

 Difficulty in establishing brand equity and awareness

 Lack of experience in distribution system
 Weak cost structure (High cost per bottle at introduction stage of production until
large quantity production begins)

2.1.3 Opportunities

 Large market potential.

 Consumers’ health awareness raised about tap water.
 Rapid growth of cities’ resident and along with it demands for bottle water grows.
 Favorable government investment policy like capital goods imports tax exemption
and tax holiday.

2.1.4 Threat

 Stiff competition from rival water bottling companies.

 Changes in technology that could affect companies that are heavily invested in current
technology.
 Future/potential competition from a large company that decides to take a more flexible
approach to meeting customer's needs.
 Changes in the regulatory environment (primarily applicable to the higher purity
product.
 Increase price of raw material and other related things.

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Matching SWOT Analysis

Strength Weakness

Opportunity We have planned to match our strength We have planned to tackle our
which are expressed as professional staff weakness like lack of having
and innovative production to established brand equity and
opportunities like untapped market share. distribution system by taking
advantage of opportunities.
Threat We have planned to use our strength to We have such a strong plan to
avoid our business threat like stiff minimize our weakness and avoid
competition and frequent technology the threat .
changes.

2.2 Internal Analysis

The internal analysis is a systematic knowledge and understanding of the strengths and
weaknesses within an organization. These factors are seen in company culture and image,
organizational structure, staff, operational efficiency and capacity, brand awareness, financial
resources, etc. Strengths are positive attributes that are within the control of the organization.
Weaknesses are factors that may hinder the achievement of the desired goal.

2.3 External Analysis

Opportunities and threats are measured as part of an external analysis. Both can occur when
things happen in the external environment that may require a change within the business. These
external changes can be attributed but not limited to market trends, suppliers, partners,
customers, competitors, new technology and economic environment. Opportunities present

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themselves as attractive factors that can push or positively influence the organization in some
way. Threats are external factors that could place the organization’s goal at risk. These often are
classified by their level of severity and probability of occurrence.

2.4 Competition

The Competition will be with all the companies exist in the market such as. Yes, eden, Aqua
Addis, one water, Arki, Hiland water, Dega water and other rivals have considerable corporate
resources, high brand recognition, long-standing relations with bottle water consumers as
compare to Brand new product. We have carefully purified water and high technology and
efficient distribution system to meet a bundle of needs not being met by existing water bottling
companies. Rather than compete in the broader bottled water market which focuses on Hotels
and Restaurants, we’ve chosen to make home and office delivery. Instead of having to lug heavy,
bulky bottles all the way from the retail store to home, delivery personnel bring longer-lasting,
10-Liter bottles with water dispenser right inside homes, offices, universities, public gathering
places like Millennium hall and conference centers.

All bottled water will quickly establish itself in the bottled water market as a top-quality provider
of bottled water. The company will do this by emphasizing superior customer service in all
aspects of the company operations. One major component of ensuring that customers are
delighted with our product is the appointment of a talented and outgoing route delivery person
who is responsible for monitoring customer satisfaction and for pursuing new business

2.5 Critical Issues

One issue critical to our success is proper promotion of the All spring water to the potential
consumers through mass media and TV Advertisement. Potential buyers may be skeptical that
the new product will meet their need but business promotion like free sample and free gift to
consumers and an activity like this will eventually promote consumers to change their mind or to
try our product. In the broader marketplace, we have to pay close attention to promote our new
product attentively and to enter the market as business customers like Hotels, Restaurants and

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Supermarkets will have influence on our market by allowing only certain products to be on their
business.

3. MARKETING STRATEGY
Positioning in the market is fundamentally based on superior quality, reliable supply &
distribution and reasonable price. The usage of recycled plastic bottle adds value to our business
as our production being environmentally friend will appeal to buyers who consider
Environmental protection. All age and income groups are potentially our market target. Since
source of our spring water is Sululta Oromia Zone which is closer to Addis Ababa.The planer
market targets Addis Ababa and its surrounding towns.

Using all elements of the marketing mix, supported by service and internal marketing, The planer
will train the market and channel partners about our product’s features and benefits to motivate
purchases by consumers and businesspeople who switch from competing handsets. In addition to
television and radio advertisement, we will use creative messages in social media, in magazines,
on our website, and in other media to reach targeted segments.
Moreover, the planer will closely monitor competitive moves to determine whether and when
changes are needed, especially to the rpricing strategy.

3.1 Mission
All Water Bottling Company is offering superior quality of water from natural spring water that
purified using high-technology from high land of Sululta. Our mission is to produce qualified
water and distribute the products to all the society at a reasonable and affordable price.
Our Environmental Goal is simply to provide a healthier and more sustainable option to
disposable plastic packages. By doing so we can lessen the impact associated with bottled water
on our planet's precious resources.

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3.2 Vision
To be the country’s one of the top providers of high quality drinking water geared towards
environmentally friend, delivering excellent products and services; equipped with competent
professionals imbued with dedication and integrity. We are entering this market having a vision
of being market leader in water bottling market by 2030.

3.3 Product Need

One of the first and most important assumptions here is there is demonstrated need for bottled
water in the market. The market study shows that competitors are exploiting all of the total
market demand and still there is untapped market in the area of bottled water.

3.4 Sufficient Customer Base

Another key assumption is that there is enough consumers demand to our product that we can
generate adequate sales to make a profit for the long run. One justification for this assumption is
the recent consumers’ health conscious about tap water and recent survey in Addis Abebe shows
that more than 50% of hotel and restaurant customers are choosing bottle water instead of tap
water. The other point is that cities are growing and more restaurants café and hotels are coming
to business and sales of bottled water are booming. The other justification for increasing demand
is the national economy is growing rapidly along with that consumer’s purchasing power is
raised.

3.5 Profitability
Every entrepreneur assumes he will be profitable, but that assumption must be supported by
market research, budgeting and sales projections. Profitability does not depend only on sales - it
centers on your cost to make and sell your product. We are assuming here is that our cost
structure is designed in a manner that enables us to produce and sell the product at lower cost
than our competitor through exploiting economies of scale and high-technology.

3.6 Management Expertise

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A product doesn’t make itself, and a company doesn’t run itself. One of the key assumptions of a
business plan is that the professional management team and skillful employees can run a
business profitably. The underlying assumption here is that we are staffed by professional
management team and competent & skillful employees are assigned to different functional units.
Here below mention some management staff members

s.r Professional title qualification experience

no
1 General manager
2 Production manager
3 Distribution manager
4 Laboratory/technical
manager
5 Finance manager
6 Warehouse manager
7 Human resource
management manager
BSC/BA in management 8/10year relevant experience
BSC/BA in management 6/8year relevant experience
BSC/BA in marketing and 6/8year relevant experience
sales management
team BSC/BA in lab technician 6/8year relevant experience
BSC /BA in accounting 6/8year relevant experience
BA in management and 6/8year relevant experience
related fields
BSC/BA in human 6/8year relevant experience
resource management

3.7 Adequate Capitalization

Even when a business starts making a profit from operations, it might still take months or years
to pay off the initial start-up costs. Many small businesses fail because the owner believes he can
fund the operations on sales. Our bottling company has assigned sufficient capital to run the
business until break-even and afterward to save us from capital shortage in short run.

3.8 The target markets

Within the consumer market, our primary target segment is low-income to upper-income citizen
disregard less of their age, gender, educational & social status as clean water is needed by all

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citizens in the country. For the time being our target market is Addis Ababa and the surrounding
towns, nevertheless we have a plan to widen our market coverage across the country in the near
future. Consumers in this segment are all citizens of Ethiopia who can afford to pay a reasonable
price for bottled waters. As clearly stated above we have chosen undifferentiated market segment
for our product as water is life and needed by all citizens.

4. Marketing Objectives

The marketing strategy will be Product development and to some extent that of Diversification.
This would entail the following:

Increase the market share - This can be achieved by a combination of competitive pricing
strategies, advertising, sales promotion and perhaps more resources dedicated to key account
selling Target increased usage by potential customers, e.g. Introducing frequent buyer schemes,
loyalty schemes to drive sales.

Innovative product dimensions or packaging: e.g. offering combo packs, family packs,
increasing pack size. Proper mix of distribution channels, e.g. making it available in
supermarkets, cinema, gym, retail stores, Hotels, college student café, Bus stations, Airports and
event occasions like Trade fair, exhibition and group tours.

Different pricing policies to attract different customers or create new market segments, e.g.
For large quantity buyers like hotels and coffee shops labels shall be fixed to promotes their
business Brand like “specially bottled for Kaldis coffee shop” and offer extra free pack for
frequent buyers.

The plan deals with the changes that can be brought about to introduce the new product,
packaging, distribution, pricing and communications mix to ensure better awareness as well as
capture a significant amount of the target.

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4.1 The marketing mixes

Using all elements of the marketing mix, supported by service and internal marketing, we will
educate the market and channel partners about our product’s features and benefits to motivate
purchases by consumers and businesspeople who switch from competing brands.

4.2 Product
All bottled water is pure spring water collected from protected springs and wells preserve springs
from high land of Suluta and as no additive on it is considered to have the best taste of all
drinking waters. The product will be available on ½, liter, 1 liter, 2liter bottle and 10 liters with
water dispensers.

4.3 Price
The bottled waters will be sold for a suggested retail price of 10 Birr, 15 Birr, 20 Birr , 50 Birr
and 70 for ½ Liter, 1 liter, 2 liter 7 liters and 10-liter jar respectively. We believe that we have
product quality and feature advantages, encouraging the use of a price slightly lower than
competitors. This pricing strategy, coupled with our efficient production methods, aids in
achieving our relatively high market share for a new product entry.

4.4 Distribution
We will introduce All bottled water in the Addis Ababa but within the first six months we shall
start selling to the surrounding towns. Our effort to reach out or to widen our market areas in
other parts of the country will be considered as far as distribution cost is not putting us at higher
cost or at disadvantage. we are distributing our product by using Isuzu car to deliver the products
to the required area such as super markets, hotels, distributers, home users, etc.

4.5 Promotion
Consumers will not know the companies brand unless we promote the product; therefore, the
planer will have to advertise more wisely to achieve brand awareness. Although the long term
goal is to be market share leader by 2030.The planer have to work hard now to enter the market

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through strong business promotion, and have budgeted to promotion seven million birr and this
will help us to use different promotion mix to ease the market entry barriers.

4.6 Brand and Product development.

Private label for bottled water brands already play a large role in Ethiopia as the recent bottled
water growth across the country is rising and competition for market share control is getting
strong. Therefore, we have come to a decision to use our own Brand that can help our business to
be uniquely differentiated in the market and hence our customer can easily differentiate us. The
below picture shows what looks like package of All bottled water and the label which says
‘ALL-NATURAL SPRING WATER “will be fixed. For different size of bottles’, the label and
package appearance will be same.
Samples of our products

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A new report on Bottled Water Packaging Innovation from specialist food and drink consultancy
has highlighted four key themes driving new product development worldwide.
 Cost reduction
 Lower environmental impact
 Brand differentiation
 New niche creation.
Continuous cost reduction has been a primary focus for many recent innovations in bottled
water packaging. These stretch right through production to storage and transport, but are
particularly apparent in bottle light weighting, less material for caps and labels, plus new ideas
for multipacks.

Reducing environmental impact has been the second main driver, extending from
relentless scrutiny of material usage to new plant-based plastics and recycle-
friendly adhesives. The most visible changes, though, are often striking aesthetic
and niche benefit initiatives to differentiate products on the shelf and attract new
customers.

4.7 ASSESSMENT OF RISK

In addition to the explanation determined risks under SWOT

analysis the followings are anticipated risks
 We anticipate the salary expense to rise due to
advancements in economic condition
 We anticipate changes in technology
 We expect the number of competitors will increase attracted
by positive profit we enjoy
 Lack of finance and Customer unsatisfaction.

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5. FINACIAL PROJECTION
The premier element in our financial plan is initiating, maintaining, and improving the factors
that create, stabilize, and increase our cash flow.

5.1 SALES FORECASTS

Total first-year revenue for All bottled water is projected at Birr 81,180,000.00 based on sales of
5,279,000.00 units on average wholesale price of Birr 10 for ½ liter;1,500,000 units. on average
wholesale price of Birr 15 for 1 liter;2,400,000 units on average wholesale price of Birr 20 for 2
liters;1,300,000 units. on average wholesale price of Birr 50 for 7 liters; 45,000 units. on average
wholesale price of Birr 70 for 10 liters’ jar 34,000 units. We anticipate first-quarter sales of more
than Birr 10 million, second-quarter sales of more than Birr 15 million, third-quarter sales of
more than Birr 15 million, and fourth-quarter sales of more than Birr 20 million. These
projections assume cumulatively higher business sales and a spike in year-end consumer sales.
The detail sales forecast is shown as follows

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Time Product Unit Sales Unit Total Revenue
Types Price
½ liter 200,000.00 10 birr 2000,000.00

First
1 liter 300,000.00 15 birr 4,500,000.00
Quarter
8,800,000.00
2 liter 100,000.00 20 birr 2000,000.00

7 liter 8000.00 50 birr 300,000.00

10 liter 5,000.00 70 birr 400,000.00

½ liter 300,000.00 10 birr 3,000,000.00

Second 15,490,000.00
1 liter 500,000.00 15 birr 7,500,000.00
Quarter
2 liter 200,000.00 20 birr 4,000,000.00

7 liter 10,000 50 birr 500,000.00

10 liter 7,000.00 70 birr 490,000.00

½ liter 400,000.00 10 birr 4 000,000.00

Third 1 liter 700,000.00 15 birr 10,500,000.00 23,800,000.00

Quarter
2 liter 400,000.00 20 birr 8,000,000.00

7 liter 12,000.00 50 birr 600,000.00

10 liter 10,000.00 70 birr 700,000.00

½ liter 600,000.00 10 birr 6,000,000.00

Fourth 1 liter 900,000.00 15 birr 13,500,000.00 33,090,000.00

Quarter
2 liter 600,000.00 20 birr 12,000,000.00

7 liter 15,000.00 50 birr 750,000.00

10 liter 12,000.00 70 birr 840,000.00

Total 5,279,000.00 81,180,000.00 81,180,000.00

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Table 1 shows unit forecasts by market and total revenue

Table: First Year Sales Forecasts by quarter:

5.2 Budget
Spending budgets are strategic and tactical. Some companies spend 50% of sales on
marketing, some spend 10%. The goal of our marketing budget plan is to control expenses
and reduce operating costs which can make us competitive in the market.
Marketing Expense Budget 2023/24
Advertising Birr 3,000,000
Catalogs/Billboards Birr 500,000
Websites Birr 500,000
Promotions Birr 1,000,000
Pubic Relation Birr 750,000
Training Birr 1,000,000
Other Birr 750,000
Total Sales and Marketing Expenses Birr 7,500,000

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6. Implementation and Control

Implementation, evaluation and control are like the three legs of a stool; remove one, and the
stool wobbles and crashes to the ground. If you remove one of these items from a marketing
plan, it falls apart, and the plan won't succeed. All three are necessary for the successful
completion of marketing activities that help businesses achieve their strategic goals.

The plan for implementation is to start up by introducing or promoting the bottled water through
advertisement, websites, Billboards, personal selling which includes free trial gift and
promotional prices. Marketing and management teams are responsible for success of the
implementation. During the process of the implementation of our marketing plan managers must
ensure efficient use of capital, human and marketing resources of our company.

Controls are necessary for the evaluation phase. Controls established during the creation of the
marketing plan provide benchmarks to assess how well our plan accomplished its goals. Controls
are like goals; they give the company something to aim for when enacting the plan. Controls may
include measures such as the marketing budgets, profitability, efficiency and market share.

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7. Contingency plan
If the competition increases advertising or our sales are less than expected, we are prepared to
add as much Birr 1,000,000 to our advertising budget. If demand for water is not as planned in
Addis Ababa we shall strive to widen our sale territory to neighboring cities.

8. References
 Philip Kotler- Marketing Management, Millennium edition (2001)
 Philip Kotler- Principles of Marketing (2011)
 Article posted in different website in different periods.
 Philip, Kevin Lep, Marketing Management. 12th edition, (2006)

9. Appendix

 Trade license
 Loan from financial institutions

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