experiences and skills

Product Lifecycle, SWOT and Tactics

Choose a product of your choice and do a product life cycle with the right explanation.

Product
Mineral water

Brand
AQUA


AQUA was established since 1973 by PT AQUA Golden Mississippi. At the first it distributed to the market, the sales of AQUA was steadily rose and the brand was steadily known by local people. Then in 1998, after DANONE group merged with AQUA, it caused AQUA brand became more booming in Indonesia. The growth then doubled and became “Star” in Indonesia market. Today, AQUA has already reached 45% of market share and becomes market leader.

Though it has many competitors now, such as ADES (main competitor), AQUA still becomes number one mineral water in Indonesia. We can say that, it is already at Cash Cow position in BCG or maturity position in PLC, where it has many loyal consumers and the positioning in the market is also strong.

Milestone
1973
PT AQUA Golden Mississippi was established as a pioneer in the bottled mineral water industry in Indonesia. The first factory was built in Bekasi.

1974
AQUA’s first product was launched in the form of 950 ml glass bottles from its Bekasi factory at a price of Rp.75 per bottle.

1984
AQUA’s second factory was established in Pandaan, East Java, as an effort to get closer to its customers in that area.

1985
AQUA developed 220 ml PET packaging for its bottled water, making AQUA products better quality and safer for consumption.

1993
Introduced the AQUA Peduli (AQUA Cares) program as a step toward recycling plastic AQUA bottles for reutilization.

1995
AQUA became the first mineral water producer to apply the in-line production system at its Mekarsari factory. This process allowed the simultaneous production of AQUA water processing and packaging. This system results in the direct filling of newly produced bottles, so that the production process is more hygienic.

1998
The merging of the AQUA and DANONE groups on September 4, 1998, constituted an important step toward improving the quality of AQUA products and has placed AQUA in the position of the largest bottled mineral water producer in Indonesia.

2000
Right at the change of the millennium, AQUA launched its AQUA-DANONE product label.

2001
On March 21, DANONE raised the number of its shares in PT. Tirta Investama from 40% to 74%, and became the majority shareholder of AQUA group. On November 1, AQUA launched a new design for the 380 ml glass bottle.

2002
AQUA was awarded “The Indonesian Best Brand Award”. 0n June 1, AQUA started implementing The “Kesepakatan Kerja Bersama” (KKB 2002-2004) program.

2003
AQUA increased its production capacity by establishing a new factory in Klaten. AQUA also started implementing the System Application System and Products (SAP) for data processing and the Human Resources Information System (HRIS), which allow for better integration of the company’s work process.

2004
AQUA launched a new logo. AQUA also launched its new product, AQUA Splash of Fruit with the essences of strawberry and orange-mango flavors in it. The launching of AQUA Splash of Fruit helped strengthen AQUA’s position in the beverage category.

2005
Danone AQUA lent a hand to tsunami victims in Aceh. AQUA initiated the first production of MIZONE, a nutritional drink from DANONE, which comes in orange, lime and passion fruit flavors, on September 27.

Do a SWOT analysis for the chosen product

1. Strength
· Strong positioning in the market (Aqua has strong brand power)
· Aqua is a market leader in this business (it dominates more than 45% market share)
· To sell Aqua product is not difficult, because it is a daily consumption product and customers know about its quality.
· Aqua is available in various size and packaging but still with competitive prices (which means people from all segments can buy Aqua)

2. Weakness
· Aqua is only a pure water (there is no variant favors)

3. Opportunities
· Large market of distribution
· Majority of the public know AQUA
· Many events that can be sponsored by AQUA as the media promotions

4. Threat
· Lack of clean water resources
· Tight competition
· Aqua is sabotaged (reproduced or distributed by unauthorized people)
· Refill water depots in local area that offer cheaper price
· Economy Crisis
· Natural Disasters

Choose one strategy that you would do for the next one year on your chosen product

Strategy
Become the most qualified mineral water in Indonesia, which means qualified in cleanness, composition, and safety.

With Marketing Mix of your choice, what are the tactics to achieve the strategy

1. Physical evidence
· Create a new seal which is safer and difficult to be harmed.
· Adding hologram on the packaging and seal to show the genuine product.

2. Price
· Prices should be competitive
· For supplier or partner we cooperate with, we will give special price in charge they only sell AQUA

3. Process
· Tighten the security in production, packaging, and distributions to avoid the product imitations (sabotage).
· Allow factory visit by public who wants to see the process of AQUA production. It can proof to the public that AQUA is safe to be consumed and can be trusted.

4. Promotion
· Promote the new packaging of AQUA by any promotion tools.
· Sponsor sports events
· Hold special program, like our current program which is “AQUA untuk anak Indonesia” where for every 1 liter of AQUA from the specially labeled 600 ml and 1500 ml products sold, AQUA will help to provide 10 liters of clean water that can be used for cooking, bathing etc. Additionally this program will also be complemented with hygiene promotion and capacity building activities aimed at empowering communities.

5. People
· Hired qualified and responsible people as the employees
· Use expert endorsement to educate public about the advantages of consuming AQUA
· Provide hotline customers services
· Improve the quality of management through training and seminar

6. Place
· Must be available at every kind of location, such as school, hospital, cafĂ©, gym, etc
· Especially for particular program (like “AQUA untuk anak Indonesia”), it should reached villages, like NTT and Irian Jaya which have problem in water supply.

7. Product
· Change the main function of product. We can produce AQUA for different needs with different quality, such as for consumption and beauty care we provide high quality, for washing rice, vegetable or fruit we provide standard quality, and for washing clothes and dish we provide clean quality.
Renold Sutadi - MKT 11-1C - LSPR.
Renold Sutadi

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