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Market Planning: Mazu Springs

Mazu Springs Filtered Water Bottle

Group Members: Belen Sabi, Cesar Delgado, Sara Bledsoe, & Kaila Turner

Market Planning Assignment

Business 306 Marketing

December 7, 2014

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Table of ContentsGROUP MEMBERS: BELEN SABI, CESAR DELGADO, SARA BLEDSOE, & KAILA TURNER............1

MARKET PLANNING ASSIGNMENT.............................................................................................................. 1

BUSINESS 306 MARKETING........................................................................................................................... 1

DECEMBER 7, 2014........................................................................................................................................... 1

EXECUTIVE SUMMARY..................................................................................................................................... 4

SITUATIONAL ANALYSIS................................................................................................................................. 4

MARKET SUMMARY.......................................................................................................................................... 6

GEOGRAPHICS.................................................................................................................................................... 7

DEMOGRAPHICS................................................................................................................................................ 7

BEHAVIOR FACTORS/PSYCHOGRAPHICS.................................................................................................8

MARKET NEEDS................................................................................................................................................. 9

MARKET TRENDS........................................................................................................................................... 10

MARKET GROWTH......................................................................................................................................... 10

SWOT ANALYSIS.............................................................................................................................................. 11

COMPETITION.................................................................................................................................................. 13

PRODUCT OFFERING..................................................................................................................................... 14

KEYS TO SUCCESS........................................................................................................................................... 16

CRITICAL ISSUES............................................................................................................................................. 17

MISSION STATEMENT:.................................................................................................................................. 17

MARKETING STRATEGY............................................................................................................................... 17

MARKETING OBJECTIVE............................................................................................................................... 18

IMPLEMENTATION......................................................................................................................................... 18

FINANCIAL OBJECTIVES................................................................................................................................ 18

TARGET MARKETS......................................................................................................................................... 19

DEMOGRAPHICS.............................................................................................................................................. 19

PSYCHOGRAPHICS/BEHAVIORAL FACTORS..........................................................................................21

POSITIONING................................................................................................................................................... 21

STRATEGIES..................................................................................................................................................... 22

MARKETING MIX............................................................................................................................................. 22

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MARKETING COMMUNICATIONS...............................................................................................................23

SALES FORECAST............................................................................................................................................ 24

EXPENSE FORECAST...................................................................................................................................... 25

CONTROLS......................................................................................................................................................... 25

MARKETING RESEARCH............................................................................................................................... 25

MARKETING ORGANIZATION..................................................................................................................... 26

CONTINGENCY PLANNING........................................................................................................................... 27

REFERENCES:................................................................................................................................................... 28

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EXECUTIVE SUMMARY

This report provides a marketing plan for the start up of Mazu Springs. Mazu Springs is

a company that is committed to offering sustainable, social, and environmentally responsible

products. The mission behind the company is to not only providing clean water, but a concern

for helping people. The product Mazu Springs will first focus on is a Reusable Filtered Water

Bottle. In addition to this product, Mazu Springs also commits itself to providing resources

globally for accessible and clean water. A percentage of every bottle sold will go towards the set

up of clean water facilities around the world.

An analyses of similar companies in the market such as CamelBak and Brita, have

provided essential data for the start-up. Mazu offers a similar product to these already successful

companies, but has also an added humanitarian approach. Research shows that consumers are

willing to pay more for products that offer more than simply a product. In addition to

competitors, Mazu Springs has also defined its target market. A survey of 90 participants was

conducted to gather information regarding customer’s interests and lifestyle. Mazu’s target

consumers are college students, mothers, and those who enjoy an active lifestyle. The report

finds the prospects of the company in its current position are positive.

This report also investigates future limitations. At Mazu Springs consumer satisfaction

and loyalty are essential to its success. However, if consumers drew away from being charitable,

due to unfavorable economic conditions in the U.S., Mazu Springs would suffer. Due to the fact

that consumers will be less concerned with social and environmental responsibility and value

price more. The biggest limitation for Mazu is financial. Like most new companies, it will take

years until the company will break even. Mazu Springs forecasts at least three years in the red.

The company’s lack of financial stability will impede on its ability to expand products offerings

to its consumers. With lower sales revenue, the humanitarian aspect of the company is limited.

Mazu’s humanitarian approach is a large component to the companies marketing strategy.

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SITUATIONAL ANALYSIS

Americans consume huge amounts of water each year, gallons upon gallons. It is

estimated that the average American drinks around 28.3 gallons of bottled water a year, second

only to carbonate soft drinks, in terms of consumption (Goldberg, 2011). It is also worth noting

that the average American will use roughly 167 bottles this year, which results in a cost of $11.8

billion (Bottled Water Statistics, 2014). In 2009 roughly 8 billion pounds worth of plastic bottles

were sold in the U.S., with only about 28% of the 8 billion being recycled. These statistics are

important in that they highlight the mass quantity of plastic water bottles used across the United

States every year. They also provide proof that the American people are still huge consumers of

bottled water, which is where the Mazu Springs Corporation comes in.

The company prides itself on its ability to not only provide an efficient and fantastic

product, but an environmentally friendly product as well. The Mazu Filtered Water Bottle is both

convenient and useful; by using it, the use and waste of plastic bottles goes down. Not only will a

consumer help the environment by purchasing a bottle, he or she will save money. With the

purchase of just one bottle, the worries of buying cases upon cases of water bottles will be a

thing of the past.

Mazu Springs is not only concerned with environmental issues and saving customers

money, but it is also interested in spreading awareness of the water problems around the world.

According to statistics, “Seven-hundred and forty-eight million people in the world do not have

access to safe water. This is roughly one in ten of the world's population” (WaterAid America,

2014). By purchasing a bottle, customers can help villages and towns across the world fight

inaccessibility to clean water. Mazu’s primary objective is to fund projects that help those across

the world gain access to much needed water sources.

Countries facing inaccessibility to clean water face the additional issue of sanitation,

which affect populations in many ways, including productivity and population rates. For

example, the organization WaterAid has found:

“Unsafe water and poor sanitation cause diarrheal diseases, which kill over 500,000 people every year and lead to malnutrition; parasitic infections such as bilharzia and hookworm; and water-washed diseases including the eye infection

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trachoma and skin infections such as scabies. Many children are frequently absent from school because they are collecting water or are sick with water-related diseases. Parasitic infections transmitted through unsafe water can hamper children’s learning potential.” (WaterAid America, 2014)

Mazu Springs has recognized the importance of this issue and has taken a humanitarian

approach to combat it. It is projected that, “achieving universal access to safe water and

sanitation would save 2.5 million lives every year” (WaterAid America, 2014). Through buying

our product, consumers will feel a sense of satisfaction knowing they will be helping those less

fortunate around the world.

MARKET SUMMARY

Americans spend a large amount of money on drinking water, mainly by buying large

quantities of bottled water. At Mazu Springs selling convenient portable water filters can both

save consumers money as well as reduce their carbon footprint. Mazu Springs sets itself apart

from competitors by putting an extra emphasis on customer warranties and return policies, as

well as its focus on humanitarian efforts. The sleek and aesthetically pleasing design of the water

bottles (seen in figure 1) will catch the eye of buyers and appeal to a broader consumer base.

It is estimated that the number of water bottles sold in the U.S is around 30 billion, which

is almost enough for 100 bottles for every man woman and child living in the U.S. (Bottled

Water Statistics, 2014). This year alone, water bottle companies will have amassed roughly $60

billion worldwide (Bottled Water Statistics, 2014). By efficiently and effectively educating

consumers, the product will not only help in the goal of reducing plastic in the U.S, but

eventually in other countries.

Two of the markets Mazu Springs will be targeting are college students and active young

adults. The portable, reusable filtered water bottle offers a smart alternative to plastic water

bottles and will prove to be very useful for those who are on the go. College students can fill the

bottles at any water fountain or faucet and instantly receive great tasting purified drinking water.

The bottle is especially convenient for active young adults who engage in activities such as

running, hiking, and other forms of exercise. Young adults are the initial target market; however,

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with the convenience and efficiency of the product, in short time it will eventually be enjoyed by

a larger market.

GEOGRAPHICS

As mentioned previously, the primary consumers being targeted are those who are living

a healthy lifestyle as well as those who are environmentally conscious, especially those who

exercise regularly and those who spend many hours of the day away from home. So the question

is, where is this target market?

Mazu will first categorize by the regions in the U.S.. Research has found that different

regions of the country enjoy different levels of exercise and healthy living. For example, in more

rural areas, specifically the south, people are less likely to exercise (Men’s Health, 2011). In

contrast, those with a healthier lifestyle would be more prone to accept the product. These

individuals can be found in areas of the country that are predominantly near the coast, as well as

near the Rockies (Where Americans Get Enough Exercise, 2014). However, these specific

regions will not be concrete because we can find an active/healthy city or community in an

“unhealthy” state. For example, Atlanta is ranked as the 8th most active city in the United States,

despite being in a region that is considered unhealthy (Men’s Health.com, 2011).

Another geographic target to be considered are cities. Large metropolitan areas offer

Mazu Springs an array of marketing opportunities. In addition, larger cities tend to be the most

“green-minded” (Svoboda, 2008). Mazu Springs will fit nicely in an environmentally conscious

population.

DEMOGRAPHICS

Mazu Springs predominantly markets to young adults with some level of college

education; mothers are also a large focus. The combination of these specific demographics will

allow Mazu Springs to reach a larger market. Mazu Springs is a great product for everyone, but

would be best received by the demographical groups listed previously.

We have conducted a survey to gather information to use in the creation of the company

and its product. 90 participants responded to our survey. When asked if survey participants were

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college educated, results showed 86.5% of respondents were either in college or have graduated

college. Another majority in the survey showed that 89.9% classified themselves as being active.

We know that there is a correlation between overall health and education (HealthyYouth, 2014).

Young adults that make up the millennial generation, ages 21-34, are more likely to be

environmentally conscious when it comes to the products he or she buys, more than generation x

and the baby boomers ("About NMI”, 2013). The same survey found millennials were also more

likely to be a repeat customer to a company that maintained a reputation for environmentally

friendly business practices.

Mothers, predominantly mothers who are actively involved in buying their families

healthy and eco-friendly products, are a focus. Research has found that mothers are more

“motivated” to buy healthy products for their families (Marketing to Socially Conscious

Consumers, 2014). With Mazu Springs’ unique warranty and money back guarantee, our

products will be a great sell for concerned mothers.

BEHAVIOR FACTORS/PSYCHOGRAPHICS

Consumers who have deep concerns about the environment will greatly relate to our

company and product. We found through research that roughly 56% of respondents carried a

water bottle with them every single day; this is significant because it shows that there is a need

for fresh and delicious water. We also discovered that roughly 88.8% of those surveyed

identified themselves as environmentally conscious, this demonstrates that a person who carries

portable water will more times than not be environmentally conscious. By showing consumers

not only the limited ecological impact of our filters, but showing them how Mazu Springs

conducts itself from a business standpoint, we will be able to greatly connect with consumers.

Our survey showed that roughly 80% of respondents identified themselves as charitable.

This statistic shows us that consumers are concerned with helping those in need. The goal is to

reach out to provide clean water to those around the world who lack access. Consumers will find

that this product not only fulfills a practical need, but a means in which they can conveniently

make an impact.

The last target market we will be focusing on is a consumer who exercises. Of those

surveyed, roughly 53% workout more than 4 hours a week. Mazu Spring’s water filter will be

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greatly beneficial to those who are active as they can refill the bottle at their own discretion, from

any reasonable water source.

MARKET NEEDS

The water bottle market is continuously growing and with this growth comes a list of

needs from customers that the market must satisfy. A research study by DDB worldwide found

that, “Seventy-two percent of all respondents said it was important to them that a brand ensures

its business practices are both environmentally and socially responsible” (The Team, 2013).

Customers in this market are looking for companies who value their social and environmental

responsibility in their products. The need for “going green” has also increased this need for

responsibility. Eco-friendly products require companies to look at more than just the recycling

aspect of their products but also the message behind the product and its social effect. This

requires companies to focus a significant amount of attention on environmental factors regarding

product manufacturing and use.

An increasing need in this market is the quality of plastic. This presents a problem

specifically for the typical plastic water bottle; however, reusable water bottles are faced with

this issue as well. (Numbers, from one to seven, measures the plastic variations). Plastic #1 are

what the common water bottles are made out of. These plastic bottles cannot withstand multiple

uses. A significant health concern with this plastic is the bacterial growth that occurs, as it cannot

be easily washed out. Other types of plastic, for example #3, #6 and #7 also cause health

concerns. “Number six (polystyrene), leaches styrene which can cause damaging effects to the

nervous system and liver . Polycarbonate, one type of plastic #7 has been shown to leach

Bisphenol A (BPA), a hormone disruptor that mimics estrogen” (Bosque, 2014). However, these

plastics are widely used for manufacturing because they are recyclable. Lastly, plastic #2, #4,

and #5 are found to be the healthiest of plastics. Unfortunately, only plastic #2 is recyclable

(Bosque, 2014).

The quality of plastic has become increasingly important as the demand for water bottles

without harmful chemicals increases. As these concerns become more prevalent, companies will

have to make the necessary changes. Research shows that, “BPA, as it is commonly known, has

been linked to cancer in lab tests. Major bottle companies like CamelBak and Nalgene quickly

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changed their bottle production techniques to remove this chemical from their bottles” (Bosque,

2014). Mazu Springs produces not only environmentally responsible products, but also shows a

concern for consumer health. All reusable Mazu products are BPA free. The market need has

been identified by companies and is quickly turning into a market trend.

MARKET TRENDS

Other trends are occurring in the water bottle market as well. These trends are closely

associated with the growing need in the market for environmentally and socially responsible

products. These trends include, eco-friendly and plant based packaging, and multiple use

products. Mazu follows these trends, requiring all water bottles to be reusable and to have eco-

friendly packaging. An example of a large corporation following this trend is Starbucks. “In

early January, Starbucks launched a $1 reusable plastic cup to reduce the volume of paper cup

waste. “The tumbler” can be refilled and washed multiple times, and then recycled in the end of

its life cycle” (Rudenko, 2013). Following this shift in the market satisfies customers by

revealing the companies social and environmental concerns.

Another significant trend found in the water market is the water quality. More and more

companies are producing filtered bottles. Similar to Mazu’s idea of giving back clean water,

another company is also thinking along those same lines. “The Sweat Machine by UNICEF

distills people’s sweat into drinkable water. The initiative aimed to promote the accessibility of

clean water to children worldwide.” (Rudenko, 2013) More companies are gravitating towards

donations and providing services beyond their products. Mazu Springs values this concept in

hopes that consumers are more inclined to buy Mazu’s product. Companies in the water bottle

industry are fairly new to this notion, but many companies in other markets have been using this

strategy. This concept will keep Mazu Springs in competition with other companies shifting this

way.

MARKET GROWTH

Research shows that the growth of the water bottle market leans on environmental and

socially responsible products. Measuring quality and sustainability are the two areas in which

this market is growing. It is found that, “Nearly 60 percent of all the businesses had expanded

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their products or services with green offerings and out of those, a majority said their investment

in green products had paid off in terms of a boost in revenues” (Green Product Growth, 2013).

According to a survey from EcoVentures International, Green America, and Association for

Enterprise Opportunity: the greener the product, the more likely it sold (Green Product Growth,

2013). In just the span of a year, the amount of U.S. consumers who are buying green products

and services has increased from 69% to 78% (Green Product Growth, 2014). Of the 90 people

surveyed, we found that 89% said they were environmentally conscious.

SWOT ANALYSIS

Strengths

Producing a filtered water bottle in a market that continues to expand opens opportunities

within the market. A positive attribute within the company is its ability to build and connect with

consumers. The company has used survey data, and other statistical research to better identify

what the public wants and needs from their water companies. Mazu has used this information to

present a superior product that is not only convenient for customers, but easy to use and provides

safe drinking water.

The filtered water bottle is not only cheaper for the consumer but it also helps the

environment. “There are a total number of 2.6 billion water cases sold in the U.S. annually, with

the average cost of one water bottle to be $1.45” (Bottled Water Statistics, 2014). This is a

tremendous amount of water bottles produced, sold, and eventually landing into landfills. Buying

the Mazu Springs reusable filtered bottle acts as an investment from consumers due to its long

term usage. At the same time our product also reduced the amount of trash accumulated by the

2.6 billion cases sold per year. “U.S. landfills are overflowing with 2 million tons of discarded

water bottles alone.” (The Water Project, 2014). Using the Mazu filtered water bottle assists in

decreasing this statistic. In addition, the materials used in the manufacturing of the bottle are

beneficial in the goal of reducing plastic waste and the company's carbon footprint.

Mazu Springs is focused on not only the logistics of providing a great product to a

growing market, but to a much greater goal of helping elevate the quality of life of those less

fortunate. This unified ambition keeps us determined and concentrated in reaching that goal.

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Weakness

Within any business, there will always be some form of weakness; however, when

presenting a new business to a market, those weaknesses can become magnified. Where Mazu

Springs stands, it has no brand recognition and no customer base. Without this brand recognition

it becomes more difficult to introduce a product from the ground up. Customers are not always

so eager to buy into a product that has not yet proven itself in the market.

As stated previously, Americans spend mass amounts of money on large quantities of

bottled water annually. This presents another challenge for the company. The obstacles that will

need to be overcome, are convincing a large market of loyal bottled water drinkers to make the

switch to the filtered bottles. This change for consumers is a market wide challenge.

The Mazu Springs filter has to be replaced every 2-3 months which can be a real drag for

customers. “The short life and frequent replacements necessary for filters is considered a con by

potential customers” (Water Filter Comparisons, 2014). The filter does not indicate when it

needs to be changed; a customer will strictly have to go off of the difference in taste, which can

be seen as an inaccurate means of identifying the need to replace a filter.

Opportunities

Mazu Springs has many external factors that can result in huge advantages for the

company. These external attributes of the company’s environment include market trends, and

customer support of the company’s mission. The first external attribute regards the growing

trends of reusable water bottles in the market. As discussed above in the market trends section of

our analysis, large companies, such as Starbucks, have switched over to reusable products. Mazu

Springs follows this trend by producing reusable filters, with the intention of creating reusable,

environmentally friendly bottles.

In addition to this advantage of market shifts, another external factor is associated with

consumers’ demands. Consumer’s demands, wants and needs, has become more prevalent.

Americans views on consumerism have been changing. Consumers have been placing more

emphasis on environmentally friendly products. “People are caring not only about what and how

they consume, they are questioning their impact on the environment and society: consumerism is

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gradually giving way to mindful lifestyle.”(Rudenko, 2013). This kind of shift in consumerism to

useful and sustainable products is a huge advantage for Mazu Springs. The humanitarian

approach, in helping provide clean water for places in need, demonstrates the company’s social

responsibility. Mazu Springs initiative to increase accessibility to clean water is encouraged by

consumers. The trend of reusable products has been growing as well, which is an advantage for

Mazu.

Threats

One of Mazu Spring's biggest threats is economic uncertainty. If the U.S market were to

slip back into recession the company would be greatly impacted as a result. During tough

economic times a person's charitable nature would most likely get replaced with feelings of

uncertainty and worry. Trying an inventive new product will not be on top of a consumer's

priority list. Uncertain times would most likely not be the best time for a customer to try a new

product or trust a new company.

Another potential threat to the company would be passing of legislation that forbids the

use of certain materials that make up this product. One of the factors that sets the company apart

from other competitors is the unique makeup of Mazu’s ecologically friendly bottle. If Mazu

were to be sent back to the drawing board, it would suffer a major set back.

The last threat worth mentioning is a potential change in the American consumer in terms

of ecologically friendly products. When we examine data we can see that America’s greenhouse

emissions have gone down in previous years. An estimated 10% decrease when comparing 2005

to 2012 (U.S. Greenhouse Gas Inventory Report, 2014). If the “green” market were to become

stagnant or decrease within the upcoming years, the marketing strategy would need to adjust to

the new marketing trends.

COMPETITION

In the broad water market, competitors include: bottled water companies, home and

business water treatment companies, reusable water bottle companies, and filtered water bottle

companies. Of these, bottled water companies and fellow filtered water bottle companies are

considered to be Mazu’s biggest competitors.

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The largest bottled water companies are Dasani and Nestle Pure Life (Leading Bottled

Still Water Brand, n.d.). Both companies are owned by well-known and established brands such

as Coca-Cola (for Dasani) and Nestle. These products have been advertised in commercials,

magazines, billboards, etc. in over 30 different countries, spending over $20 million in

advertising per year (Elliott, 2013). Both companies claim to give customers a crisp, fresh tasting

water to take on the go. What makes these brands incredibly difficult to compete against is that

they are both convenience products, readily available almost anywhere: a stadium, a gas station,

a grocery store, etc..

The two largest filtered water bottle companies are Brita and CamelBak. Just like our

bottled water competitors, these companies have also made a name for themselves. Brita is

owned by Clorox and is not only available on their own website, but also at stores such as Target

and Wal-Mart, where a large portion of our nation shops. Those locations alone give it an

incredible advantage over the rest. Their product variety allows a shopper to decide whether to

buy a filtered water bottle, a pitcher, or a faucet dispenser. All are reasonably priced at around

$15, $35, and $25 respectively (Ditch the Disposable, n.d.). Brita also uses television and print

ads to advertise it’s environmental and money-saving platform.

CamelBak, on the other hand, is marketed as a rugged, sports-recreation product

available in stores such as Dick’s Sporting Goods, Sports Authority, and also Wal-Mart and

Target. Known for its durability, CamelBak has been a trusted brand for active and sporty adults

who like to brave the elements. CamelBak’s inventory of products is quite extensive, offering

several options for carrying water. However, their filtration devices are only targeted toward

customers interested in extreme sports versus targeting a wider range.

PRODUCT OFFERING

The company’s main mission is to help others; to provide for those who are less

fortunate. However, it is still very important for Mazu to produce a product that is superior to the

rest, one that could—even without our humanitarian platform—compete against it’s competitors.

Thus Mazu has strived in producing a product that meets the needs of new buyers while looking

stylish at the same time.

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Figure 1

The Mazu Filtered Water Bottle design can be seen above in figure 1. The bottle will be

manufactured using BPA-free Eastman Tritan, a tough and durable co-polyester material that has

similar properties as common plastics, but has the appearance of glass without the weight (The 7

Most Common Plastics, n.d.). This ensures for a sleek design without sacrificing durability and

also makes our product dishwasher safe. The design of the bottle, with its wide opening, ensures

that it will be easy to clean and convenient to take on the go. Its 22-ounce capacity makes it easy

to carry and stow, whether that be in a cup holder or in a backpack pocket. The shape of the

bottle makes it easy to grasp along with its small, rubber strands to make for a better grip of the

bottle. As for the top of the bottle, it will include an oval mouthpiece design that allows for a

comfortable, clean experience. The lid for this mouthpiece will be twisted onto the bottle, and

attached to a thick, wide strap making sure that it is never lost and also doubling as another easy

way to carry the bottle.

The most important element of the bottle, of course, is the filter (see figure 1). The

product contains a carbon filter; a proven, powerful chemical absorbent that will improve the

taste of water and eliminate chlorine, taste, odor and particulates for about three months or 48

gallons of water (Filter Types and Technology, 2013). This filter allows for an eco-friendly

lifestyle that helps your wallet and your health. Beyond those benefits, this product also includes

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warranties that will be advantageous to customers. Mazu Springs warrants a lifetime guarantee

on its products for the lifetime of the product through normal wear and tear. The company will

repair or replace at its discretion any manufacturing defect in these products free of charge.

Lastly, Mazu will replace a new customer’s first filter, also free of charge.

KEYS TO SUCCESS

In order to gain market share in the water industry, there are key factors that will aid in

Mazu Springs’ success. Firstly, this product offers a way in which buyers can save money. A

moderate water drinker, who drinks one bottle (16 ounces) of water per day, will spend about

$80 on a three-month supply, or 11 gallons, of bottled water (Thau, 2011). With a filtered bottle

or jug, that $80 can supply a year’s worth of filtered tap water (Thau, 2011). The amount of

money Americans spend on water is ridiculous, especially when factoring in the fact that the

Food and Drug Administration only regulates about 30% to 40% of the bottled water sold here in

the U.S. (Thau, 2011). Compare that to the over 90% of water systems in the U.S. that meet the

regulations of the Environmental Protection Agency (Thau, 2011). Of the two, tap water proves

to be a healthier option. Along with the tap water, the filter will greatly improve the water’s

quality and taste.

It’s also important to note the expansion of the “green” market in the U.S.. The green

market has provided untapped potential for eco-friendly products and services. As Americans

become increasingly more aware and educated on the environmental issues, the market will

continue to grow and make way for new products. At the moment, the U.S. ranks 33rd out of 178

nations for its Environmental Performance Index (United States of America, 2014). There is still

plenty of room to grow and a great time to enter into this market.

What separates Mazu from the competition is their humanitarian efforts. A portion of the

proceeds will go toward providing clean water to those around the world who lack access. Mazu

will help villages and towns across the world with solutions tailored to the needs of each

community, whether that be through rainwater harvesting or digging wells.

Everyone deserves access to clean water and Mazu is dedicated to making that a reality.

According to the World Giving Index, the United States is ranked number one in charitable

contributions (The United States, n.d.). This is echoed once again in our own survey as 80% of

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the 90 people surveyed said they consider themselves to be charitable. If Mazu cannot convince

customers to buy its product for its money-saving or eco-friendly attributes, then perhaps it can

convince them to buy it to help others and change the world.

CRITICAL ISSUES

In any business, there are always obstacles that can leave a company vulnerable. One of

the major obstacles Mazu Springs could come against is if the economy were to slip back into a

recession or worse. During times when money is tight, people tend to focus on essential

products. A filter may be viewed as an extravagance or a luxury and therefore will not be

purchased.

The company’s lack of recognition and influence within the marketplace, especially

compared to its more established competitors, may leave it in a very vulnerable position as well.

The company does not have as many connections, finances, and facilities as those it is planning

to compete against. This could stop Mazu in its tracks.

Another issue that can hinder Mazu’s business is if the government decided to regulate

the quality and taste of the country’s water systems. In our survey, we found that 82% cared

about the taste in their water. If the government began regulating the aspects that make Mazu

relevant, then it would be out of business; there would no longer be a need for water filters.

MISSION STATEMENT:

“Our company is committed to helping people, as well as the environment by reducing bottled

water production and continuing the growth of water purification around the world. By offering

a filtered water bottle, Mazu Springs would like to introduce better habits for your health and

your world”

MARKETING STRATEGY

Across multiple demographics, there are billions of active people who rely on freshwater.

In order to capitalize on the health benefits of water, it is essential to draw from a clean source of

water (All About Water, 2004). Mazu Springs’ marketing strategy is to implement the

company’s value proposition and to take advantage of the marketing segmentation.

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Mazu Springs provides a convenient, reusable filtered water bottle that is useful for

consumers on the move. These filtered water bottles are an alternative for using a typical plastic

water bottle. Mazu Springs is positioned to appeal to active young adults who engage in

activities such as running, hiking, and other forms of exercise. At Mazu Springs the company

prides itself in providing a filtered water bottle to improve the quality of water.

MARKETING OBJECTIVE

Nearly 60% of online shoppers said they first review a product prior to purchasing and

40% of online shoppers claimed that they would not even buy a product without seeking reviews

online first (Conversion XL, 2012). It is the goal at Mau Springs is to create high consumer

satisfaction that will lead to word of mouth marketing and online advertising. Mazu Springs

filtered water bottle will have a long product life, as long as the company is fulfilling customers

needs and expectations. These qualities will reassure potential customers about the reliability of

the product. While creating customer satisfaction and applying the marketing communication

strategy, Mazu Springs product is predicted to be successful.

IMPLEMENTATION

To begin the implementation process of Mazu Springs the company must first

manufacture the cap, the bottle, and receive the supplies for the filter. These are the necessary

parts to construct the Mazu Springs Filtered Water Bottle. Once the filtered water bottles are

built they will then go through product testing to ensure that the bottle and filter is functioning to

its highest standards. While the testing is in process, the company will gather a team to market,

find and contact to active consumers.

Mazu Springs will show consumers--through carefully placed advertisements--the filtered

water bottles and the meaningful humanitarian efforts behind the product. Through education,

customers can decide whether this product will be an added benefit to their lives. While

satisfying active consumers, the company will promote testimonials of the product through

online advertising, which includes social media, blogging and possible endorsements.

FINANCIAL OBJECTIVES

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Mazu Springs aims to sell 18,000 filtered water bottles its first year in business, 22,000 in

its second year, and 27,500 its third year. Each bottle Mazu sells will be sold for approximately

$30. With these goals in place, Mazu’s aim is to break even by its third year in business.

TARGET MARKETS

On pages 3-6, it was discussed which target markets would be the best fit for this product.

These decisions were guided by three main criteria: demographics, geographic, and

psychographics/behavior factors.

DEMOGRAPHICS

Demographics includes a myriad of variables to look to, such as: age, life-cycle, gender,

income, occupation, education, religion, ethnicity, and generation. However, only a few of these

components were focused on in the search for the perfect target market.

Education

Although water filtration systems have been available to the general public for around 30

years, they have never been as popular as they are now (Life Source Water System, 2014).

However, there is still much more room to grow in an ever growing market. To do this, Mazu

will be targeting individuals who have or are currently acquiring a college education. Through

research the correlation between education and overall health is obvious (Health and Academics,

2014) as 86.5% of those who were surveyed were in college or have already graduated from

college and 89.9% classified themselves as active individuals.

The eco-friendly market in the United States is still young, with many unaware of the

benefits of choosing eco-friendly products or services. For this product to do well in the market,

educating consumers as to the benefits of making such a purchase as well as educating them on

an the issues that plague our world will have to be implemented. This will be much easier of a

task if the target market (for the most part) is an educated group.

Generation

More than any other generation before them, the millennial generation—those aged

between 21 and 34 years old—are more likely to be environmentally conscious and therefore

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more likely to buy eco-friendly products (“About NMI,” 2013). What’s even greater, the same

survey found that millennials are more likely to be repeat customers to environmentally friendly

businesses. These findings are a goldmine ; it would be very unwise for Mazu to not tap into this

market segment.

Life-Cycle Stage

It’s no secret that in our society “mothers are the gateway to sales” (7 Tips for Marketing

to Moms, n.d.). In the average American household, women make 85% of the purchasing

decisions, and often she is a mother (7 Tips for Marketing to Moms, n.d.). A mother is not

simply buying products for herself, but for her husband, babies, teenagers, and for the entire

soccer team. What’s more is that mothers are becoming more motivated to buy healthy and eco-

friendly products for their families (Marketing to Socially Conscious Consumers, 2014). She’s

not only deciding on what groceries to buy, but also electronics, household items, and vehicles.

Mothers, in this day and age, have access to online tools they use to research products

and to express their thoughts and feelings about those products. Mazu’s product incorporates the

humanitarian aspect of our business as the forefront of what our product provides in terms of

value; because of this, it will be an extra nudge to mothers (who tend to have a soft spot for

matters that tug at the heartstrings) to buy the bottle.

Regions

Through research finds, it has been concluded that different regions of the country enjoy

different levels of exercise, and healthy living. For example, in more rural areas, specifically the

south, people are less likely to exercise, (Men’s Health, 2011). In contrast, those with a healthier

lifestyle would be more prone to accept the company’s product in higher numbers, and through

research we believe we have narrowed down which regions of the country reflect the lifestyle we

are trying to target. The regions that will be the primary focus will be states in the country that

are predominantly near the coast, as well as near the Rockies, (Where Americans Get Enough

Exercise, 2014).

Large Cities

Large metropolitan areas offer Mazu Springs an array of marketing opportunities. In

research conducted, it has been discovered that the larger cities within a state tend to be the most

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“green-minded” (Svoboda, 2008). Mazu Springs will fit nicely in an environmentally conscious

population.

PSYCHOGRAPHICS/BEHAVIORAL FACTORS

Lifestyle

Mazu Springs will be targeting those who live a healthy and active lifestyle. Through our

survey we discovered that 90% of individuals considered themselves to be active persons and

84% considered themselves to be healthy. Among this large percentage of healthy and active

individuals, over 80% of those surveyed carried a water bottle with them (always and

sometimes). It’s obvious from our findings that a person with an active and healthy lifestyle is

more likely to purchase the bottle.

Through our survey we found that 88.8% identified themselves as environmentally

conscious. This statistic along with the fact that about 80% of those we surveyed are part of the

millennial generation seems to coincide with research mentioned earlier: millennials are more

likely to purchase from environmentally friendly companies. This product appeals to those who

are eco-minded and those who see the benefit in investing in a product that is not only good for

your wallet, but for the world as well.

Lastly, the element that differentiates this product from the rest is the humanitarian

efforts. For some consumers, this will be the only benefit from this product that they see.

Although the green market is expanding, many Americans have yet to see the benefit of buying a

green product. For those who don’t see this benefit, perhaps they will still be moved to buy a

Mazu bottle for its goal in helping those around the world. For this reason, Mazu is targeting

potential customers who are charitable. These consumers will find that this product not only

fulfills a practical need, but a means in which they can conveniently make an impact.

POSITIONING

The Mazu Springs Filtered Water Bottle will first and foremost be positioned as a means

in which customers can conveniently aid those who are in desperate need of accessing clean

water. This is the one element that differentiates us from our competitors. All of our competitors

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stand on the same platform: their product will help the wallets of their customers while also

helping the environment by reducing bottled water consumption. A great majority of Mazu’s

competitors also promote a healthy lifestyle. While we will promote all these same components,

the company’s objective is to showcase its humanitarian efforts more prominently so that the

humanitarian aspect will be in the forefront of customers’ minds when purchasing.

Beyond this, this product should be known for its quality. The company has spent many

hours delving through water bottle reviews in an attempt to discover what potential buyers would

like for a water bottle. The company has listened intently and has created a truly superior bottle,

one that without its humanitarian platform could compete against the very best of its competitors.

STRATEGIES

Unfortunately, Mazu Springs does not have the luxury of an established business or

organization and because of this it has concluded that the best option for the company is to

market directly to customers, specifically business-to-consumer via online marketing.

The product requires the company to educate potential customers on the benefits of

purchasing the bottle; therefore, carefully placed online advertising –which leads customers to

Mazu’s site to explore and learn more about the company and the value of its product—will

assist in the goal to grow its business. An online presence along with some public relation events

will aid in getting Mazu’s name out into the public’s mind and building customer relationships.

MARKETING MIX

Pricing

To estimate the pricing of the Mazu Springs Filtered Water Bottle, a focus was made

primarily on what the top competitors charged for their water bottles. Brita and CamelBak’s

filtered water bottles range in price from $10 to $35 (Ditch the Disposable, n.d.). Given the size

and quality of the bottle along with the humanitarian efforts, it has been concluded that

approximately $30 per bottle would be a fair price for our product.

Distribution

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The primary means of distribution will be through the Internet. Currently the Internet

captures 7% of total U.S. retail sales, but influences 48% of purchases (Kotler, 2014). As the

Internet’s capacity grows, it would be the best and most efficient portal for the business to

flourish. Starting off as a click-only company will allow Mazu to build deeper, more

personalized relationships with its customers. This route also allows the company to not only

distribute its product in the U.S., but also abroad. Once Mazu has a substantial foothold in the

market, it will be much easier to expand Mazu Springs to retail stores around the country.

MARKETING COMMUNICATIONS

Online advertising will be Mazu’s primary method of marketing to potential customers.

As a start up business, this is the cheapest and most logical means in which to get recognition.

Social media, blogging, and possible endorsements will all be ways in which the company will

get the product and mission as a company out there for people to see. Carefully placed

advertisements that are targeted toward the target market will communicate the value of

purchasing the bottle. The company has a mission beyond saving the planet, with its platform it

may attract some famous faces to support our cause in trying to help others around the world.

Public relations events will also help boost the company’s credibility as well as build

relationships with individuals. These events would have to be in areas where the target market

would be, such as large farmers markets, environmental rallies, and events that promote

humanitarian efforts.

FINANCIALS

Mazu Springs expects to see losses in the initial roll out of its product. Taking into

consideration, expenses such as rent, maintenance, and other fixed costs. Like most companies

Mazu will see the biggest cost come from salaries. Our estimations for Mazu are around

$400,000 a year. Another big cost for the company is it’s Charity work. They have planned to set

aside a certain percentage of revenue from every month’s sales to help with “water projects”

around the world. This variable cost can fluctuate greatly throughout the company’s lifetime.

The performance of the company is what will determine the amount of money that will be

donated each year. Below you can see an estimation of Mazu’s expenses for the coming year.

23


Figure 2

SALES FORECAST

The first quarter’s sales will be minimal; however, the product will gradually begin to

gain notoriety. As a result, sales will increase as time goes by. The product will be sold directly

to customers via the Internet. It is estimated that the sales for the year 2015 will reach close to

16,000 water bottle filters. Mazu will not have the financial resources to sell to big chains such

as Wal-Mart or Target, at first. It wouldn't be until years down the road until Mazu would be able

sell to big named companies.

Direct sales to customers will be Mazu’s only means of doing business (at this moment in

time). Mazu’s first year will more than likely be in the red. By the third or fourth year they could

possibly experience profit. The company’s stance on humanitarian issues, sustainable products,

and fair prices will eventually catch on to a wider range of consumers.

Figure 3

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EXPENSE FORECAST

In order to reach its marketing objectives of staying low in cost, offering product

warranties, and remaining responsible for the products’ social and environmental effects, Mazu

separates costs by defining aspects as fixed or variable. Fixed costs for Mazu include advertising,

employee salaries, insurance, and rent. These all are essential for the running of the company and

must be included as concrete costs in the expense forecast. Additional costs must be considered,

such as: packaging and printing. These are variable costs for Mazu Springs, but are still essential

aspects to the planning of expenses.

CONTROLS

Controls are established to clearly organize and plan for Mazu Springs start up of the

company and introduction of the new water bottle product. At Mazu Springs three essential

elements will be controlled: customer feedback, target market sales, and budget. All of these

controls will provide Mazu with information that will assist the planning for the new company.

A significant element in Mazu’s control procedures is gaining customer feedback. Being

a new company with new products, customer feedback is essential for Mazu to grow. Feedback

identifies areas of strength and weakness. Additional data used from setting a target for market

sales provides Mazu with goal setting opportunities, as well as tracking the market sales. Market

researched paired with this data, is essential for Mazu’s control. Controls placed within the

management of the budget are essential for the start up of the company. Managing the budget of

advertising will be closely monitored.

MARKETING RESEARCH

Mazu Springs has conducted research using two methods. The first, secondary research is

the collection of existing research or data. Mazu focused on similar companies like CamelBak

and Brita, and researched their methods as well as their weakness/strengths. Although the

evaluation of similar and competitive companies is very valuable, the most valuable secondary

research for Mazu is the data and information collected from researching water and the water

bottle market. Secondly, research was made using a survey of 90 individuals. This survey asked

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vital questions to the formulation of the Mazu Springs company that we used when designing the

product.

MARKETING ORGANIZATION

Mazu Springs will only sell to consumers directly, via the Internet. Mazu Springs will

allow customers to purchase water bottle filters through its website. Since Mazu is an up and

coming company with limited financial, resources we will begin with selling in areas we feel will

be more receptive to the product. The marketing team will be split up to deal with different

segments of the marketing strategy. For example, the company will have a grass roots

department whose job it is to market using tools such as social media. Since the budget will start

out small, the advertising would have to be on a low budget. Mazu Springs hopes to attract

consumers with its unique humanitarian stance. It will devote a certain portion of its time and

money on improving clean water accessibility around the world. A certain number of employees

will be used to not only implement humanitarian plans, but on making sure consumers are aware

of its humanitarian plans. A third marketing strategy that Mazu will be implementing is

customer satisfaction, a 100% customer satisfaction. A customer can simply send products back

if they are unhappy with them. Mazu will create a department to deal with claims and customer

feedback.

Figure 4

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CONTINGENCY PLANNING

Mazu Springs is a new company, and like all other new companies has zero name

recognition. It is also very likely that the company will experience financial loss; in the first few

quarters, perhaps even the first few years. Mazu is entering the water bottle filter business in

hopes that they can grab a big enough piece of the market. They plan to sell to eco-conscious,

health-conscious, and charitable individuals. If our numbers are wrong and the target consumers

don’t care about eco-friendly products, not to mention if consumers begin to care little about

humanitarian efforts, the business would suffer.

The success of the company relies on the fact that consumers need to maintain a positive

image of Mazu Springs. If the company is ineffective in letting consumers know of its

humanitarian efforts, it would almost certainly fail as a company. From a marketing standpoint,

Mazu must not only partake in humanitarian efforts, it must actively let consumers know of the

efforts. It must also stress the fact that the customers’ purchases can make a difference.

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