Water Purification Station is a socially innovative business concept for the community people to improve the people’s health. Social responsibility is a marketing tactic and it has the flavour of socio-entrepreneurship. Social enterprise’s primary purpose is to deliver the common good to the people and its service or products must generate income (Gabrielli & Balboni, 2010). This report highlights the promotional plan and digital marketing communication of Water Purification Station situated in Melbourne, Australia. In the first part of this report, aim, target market and a brief explanation of the chosen product and service are described. The research method is taken as primary data collection method through qualitative analysis. Current value analysis and promotional plan of Water Purification Station are also given in this report.
The main aim of this report is to deliver and communicate better values through a digital promotion for Water Purification Station and to improve community welfare and humanitarian.
Water Purification Station is a place where water is purified removing undesirable chemicals, suspended solids, gases and biological contaminants from water. Water Purification Station will be established in Melbourne, Australia as an innovative product to improve people’s health. The main aim of this service is to provide clean drinking water to the people with low cost.
The target market of Water Purification Station includes the local community of Melbourne and its suburbs, traders in nearby towns and online customers who will try to avail the service and products of water purification station. Millions of people prefer healthy drinking water; therefore, the target market will be based on geographic segmentation and psychographic segmentation. A geographical segment is based on locations and regions near Melbourne, on the other side, psychographic segmentation is about lifestyles, personality, class and attitudes of the people. Customers who have a tendency to purchase and used to of having healthy drinking water will eventually purchase drinking water.
Water Purification Station brand targets its integrity and quality by applying core values of giving the customers healthy and clean drinking water with nutrients. The production cost, the value of the product perceived by the consumers and market value of a product comprises a value of a product (Baron, Brouwer & Garbayo, 2014). The current value of Water Purification Station is high as it provides socially innovative service to the customers at a low price.
Water treatment technologies and its industry hit rapid growth and it was estimated $7 billion in 2016, it may touch $11 in 2020 in global. Market competitors in Australia are Water Treatment Australia Pty, Water Treatment service and Chemtex Speciality Ltd. The market position of this Water Purification Station will be better in a few years as this one will be innovative. In order to create new values, the Water Purification Station needs to understand what drives the customers and they need to identify the segments where they can create more values. The innovation of the organisation is that it can reduce the water waste through recycling and it will contribute to environmental conservation.
There are two types of data collection techniques, primary data collection and secondary data collection. Primary data are raw data that are collected direct through respondents (Mackey & Gass, 2015). Secondary data are collected from secondary data sources. In order to gather market information, the research team has used both primary and secondary data collection techniques. In order to collect data from primary data collection, the research team has used interview and descriptive survey. On the other side, secondary data has been collected through books, journals, online articles, government reports and company reports. Case studies also consider understanding the concept of water purification and water treatment market. In order to gather primary data, focus group has been set and focus group shares common ideas for gathering market information.
Case study explains about strategies used by the organisations and these strategies help in understanding of the values of the customers, brand values of the organisations and value proposition (Taylor, Bogdan & DeVault, 2015). Case study research is a methodological approach to do research in a qualitative manner and in this research; researcher team has conducted case study research method in order to conduct in-depth analysis. The research team has conducted case study involving the research a series of cases. In these cases, the researchers have tried to illustrate a description of a single event and they have done complex analysis of organisational contexts. The research team gathered information from various sources.
In order to conduct descriptive survey of the market, the research team has prepared questionnaires offering standard questions to the target market. This descriptive survey has been conducted to the buyers of the healthy drinking water. In today’s life, people are getting health conscious and their opinions on survey helped in understanding of the brand preferences, customers’ attitudes and competitors’ proposition. The research team has chosen 45 customers of healthy drinking water and the researcher team has prepared 12 questions to during survey. The research team has taken simple random sampling in order to choose the respondents. The descriptive survey has been analysed through qualitative research analysis technique.
The researcher team has conducted interview to project representatives. These interview sessions have helped in gaining the knowledge about new project of water purification. The idea about new project and its future goals have been understood through these interviews. The research team has chosen three project representatives of water purification stations and the research team has prepared 6 open-ended questions to ask during interviews.
Value in marketing is known as customers’ perceived value. This is the difference between costs of one product and prospective customers’ evaluation (Scammell, 2015). There are two terms associated with this, Total Customer Benefit and Total Customer Cost. Total Customer Benefit is associated with the perceived monetary value of the functional, economic, and psychological benefits consumers expect from the market offering. On the other side, Total customer cost is associated with perceived costs of customers’ expectation in obtaining, evaluating and using the market offering. Water Purification Station provides the attributes of healthy water that is germ free and it has nutrient value which may entice the potential customers to choose over the other competitors. Water Purification Station provides value of the personnel as the organisation will provide help to customers through well-trained personnel in having the healthy drinking water and making the water purifiers. Competitors also try to meet the value through giving free distribution of the bottles and containers. Water Purification Station tries to hold a good image in the market and they are doing online marketing to create brand image. Reputation and image can form customers’ expectation. Other competitors are also doing the campaign using the logos and outdoor marketing. Monetary cost is associated with literal cost incurred by the customers in order to gain the products (Tsai & Wang, 2017). Moreover, psychological cost is mental effort created during using and acquiring of the healthy water from the moment it is purchased and from the moment it is consumed.
BCG matrix:
Cash cows: It is in the no-growth industry with large market share. Healthy water is not matured yet. This organisation is new in the market and it distributes water through bottling in many regions and it allows the company to earn good revenue and company needs to invest more to earn more revenue (Suthar & Pradhan, 2014).
Stars: It is in a growing industry and in high market share. This product in the market has the potentiality to gain a good amount of cash in the future. Mineral water and water purification products are ever evolving products. The company needs to expand the purification station in order to fulfil the community demand.
Question mark: It is in the low market share and in high growth rate (Datta, Aliwadi & Van Heerde, 2017). Water Purification Station can carefully evaluate if there is more marketing opportunity associated. Water Purification Station is on the market that is ever expanding and they need to generate more sale volume.
Dog: It is in the flat industry and in low market share. The customers in healthy drinking water can be enticed to purchase the products. Water Purification Station can provide the products and service with heavy discounts as the market has room for growth.
Figure 1: BCG Matrix of Water Purification Station
(Source: Self-developed)
Product life cycle (PLC):
Product life cycle is a significant concept in marketing and it describes stages that a product needs to go through (Smith & Zook, 2016). Water Purification Station offers drinking water and it has established in the market recently.
In the first stage of Introduction, the marketer’s research, develop the products and they launch the product in the market. Water Purification Station offers healthy drinking water in Melbourne after they research about the market.
In Growth stage, the sales of the drinking water in containers and in bottles have been increased at the faster rate. In addition, the competition in this stage is higher.
In the maturity stage, the sales of the pure drinking water are near the highest. In the market, there are other companies that take over the market. Water Purification Station offers drinking water in cold and normal variation. The rate of the growth in this stage will be slowed down. The market saturation will eventually occur and market competition will make the market saturated (Fan, Lau & Zhao, 2015).
In the decline stage, the sale begins to fall and Water Purification Station can opt to take product extension in order to survive the market.
Figure 2: Product life cycle of Water Purification Station
(Source: Self-developed)
The value proposition is the statement through which an organisation specifies why the customers should choose their products. Value positioning statement must convince the potential customers and to add more value (Keller, 2015). Water Purification Station uses the statement in order to target the customers who can be benefited most from using the company’s products. Water Purification Station communicates the reason why a product is best for the customers. Water Purification Station targets mostly the geographical group and psychographic group in communities. Water Purification Station has its website and the value positioning must be displayed over there. The value proposition can have a headline and with the headline, there can be sub headlines also. There are two segments, first one is product segment and it includes benefits, experiences and features. Customer segment includes wants, needs and fears. Substitutes in the market are always present.
Figure 3: Value Proposition Canvas
(Source: Self-developed)
Water Purification Station is going to implement the digital marketing in order to promote the product and service. Australian people are spending an increasing amount of time online and online behaviour has become a source of socialisation and entertainment for people.
|
Advertising Media |
Expenses |
|
Website planning |
|
|
Domain name |
$200 |
|
Software |
$260 |
|
Testing |
$300 |
|
Advanced customisation |
$150 |
|
Copy editing |
$40 |
|
Social media advertising |
|
|
|
$30 (per month) |
|
|
$25 (per month) |
|
|
$30 |
|
YouTube |
$50 |
|
Online Advertising |
|
|
SEO |
$150 |
|
PPC advertising |
$140 |
|
Content writing |
$200 |
|
Total |
AU$1575 |
Table 1: Budget allocation for digital marketing
(Source: Self-developed)
Product:
Water Purification Station provides healthy drinking water to the community people. The main aim of this organisation is to provide socially innovative product and service to the community people. Healthy drinking water with healthy nutrients is the offering of the Water Purification Station. Quality of the product is excellent and packaging of the product is germ-free.
Place:
The organisation is in Melbourne and it offers healthy drinking water to the community people. The water purification station is in Melbourne area. The distribution channel of the organisation is a single way and no such intermediary is associated with this channel (Lambooy 2014). Therefore, the distribution cost of the firm is low and transportation used in this organisation is energy efficient. The transportation is sustainable and the vehicles help to reach the products on time.
Price:
Water Purification Station has spent a large amount of money in setting the water purification station. However, the organisation provides a lower price for selling the products to the community people. Socially innovative products are offering containers and bottles. The organisation has been offering through low price and it may use the discount price to survive in the market.
Promotion:
Water Purification Station is going can take digital marketing to promote their products. In addition, the organisation cannot take out-of-home advertising as it will be the very expensive mode of promotion and for a newly launched organisation, it will not possible to accommodate in this budget. Water Purification Station can use the website for promotion of the business and they can provide a link to the social media platforms in order to increase the website traffic. Online marketing strategies of Water Purification Station are associated with SEO and PPC (Pay-per-click). SEO (Search Engine Optimisation) technique increases the visibility of the brand name in an online platform. PPC technique helps the organisation to increase brand name visibility. In social media, Water Purification Technique can use Instagram, Twitter and Facebook in order to promote their business. Social media platform is cost-effective and management team can handle these very well (Chaffey & Ellis-Chadwick, 2016). The management team of this organisation can use social media analytics in order to utilise these tools simultaneously.
|
|
|
|
|
|
Company brand presence |
Facebook business page |
Profile page |
Profile page |
|
Social media site focus |
Sharing news and content |
Sharing news and stories |
Sharing images and videos |
|
Impact on website traffic |
Direct links from content posted |
Direct content posted |
Link posted and food images |
Table 2: Social media strategy
(Source: Self-developed)
Brand value analysis can be done using four phases’ techniques. In the first phase, brand and customer research are done in order to review all brand messaging. The organisation can review all brand messages to reach the consumers of the brand products. The organisation needs to measure consistency of use and relevance of customers’ expectation. Water Purification Station identifies the core customer groups. Intellectual property value of the organisation needs to evaluate in order to focus on the brand image (Ryan, 2016). Phase two is associated with evaluating the brand relevancy to meet consumers’ market relationship. This organisation has been doing online marketing to make a relationship with the customers. Brand messaging has been done using social media, online platform and website contents. In the phase three, the organisation needs to evaluate all basic features relevant to core target customers. Target customers of Water Purification Station are psychographic segments who like to be healthy and geographic segmentation who live near Melbourne area. Review costs, benefits, value need to be assured through effective reach of the customers (Royle & Laing, 2014). Management needs to check the alternatives in to order to lead integration effort throughout the organisational structure. Value stages of marketing are associated with marketing programme investment, customer mindset, market performance and stakeholder value.
|
Competitors’ names |
Products |
USP |
Marketing |
|
Water Treatment Australia Pty |
Healthy drinking water in bottles and containers |
· The largest market share in bottled water industry · Major player in Australian market |
They take newspaper marketing and out-of-home technique |
|
Water Treatment service |
Water purifiers and mineral drinking water |
· They take competitive strategy · Packaging · They develop 5 unique pack |
They mainly use online marketing |
|
Chemtex Speciality Ltd |
Mineral drinking water in bottles |
· They have bulk water solution system · They provide water in small and large bottles · Distribution channels |
They do not use marketing |
Table 3: Competitors’ analysis
(Source: Self-developed)
Conclusion
Water Purification Station offers innovative product and it contributes improved community welfare. This organisation sets up the water purification station in order to provide packaged drinking water to improve people’s health. Social entrepreneurship strategy has been taken by the firm to provide lower price for the community service. In order to collect the data, case study, descriptive survey and interviews have been conducted. Water Purification Station’s brand value analysis has been conducted through product life cycle (PLC) and BCG matrix technique. In addition, value proposition has been done to show the condition of organisation on competitors. Water Purification Station takes online marketing strategy to promote the service and products to the community people.
Reference List
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