Submitted by: Submitted by eddy92
Views: 157
Words: 3171
Pages: 13
Category: Business and Industry
Date Submitted: 04/19/2014 01:41 PM
Purely Gr. . . 8! Water Company Inc.
Introduction
Purely Gr…8! is a bottled water company that prides itself of its eight step filtration process that removes impurities to 8 ppm. The owners, Henry Reyes and his son Romil, started the company 10 months ago in Toronto. Their primary market is the Filipino community in the GTA. Their current sales are driven by six sales representatives and 12 sales associates. Sales are steady and production is at full capacity. The Reyes are now looking to expand their business and their market. How can Purely Gr…8! increase production capacity and expand their target market while decreasing fixed costs? This is the task that has been given to Sandra Hawken, and she only has one week to prepare her recommendations.
External Analysis
Opportunities:
With current demand high enough to run at full capacity, there is an opportunity to increase the price to determine what value customers are placing on purity and the price ceiling. The commercial market is virtually untapped by competitors. Crystal Clear Springs is the only company mentioned as servicing offices. There are organizations such as the IBWA that hold conferences and give awards within the industry. Third party recognition, such as awards, is a great marketing tool. In 1990, a Metro Works survey showed that 25% of the population didn’t trust the quality of the tap water in Toronto. This information confirms that the need the product addresses goes beyond the Filipino market.
Threats:
There are three companies that dominate 59% of the market and almost 900 others fighting for the other 41% (Appendix 1). The commercial market represents only 10% of the total market. People buying bottled water are not buying based on the level of impurities in the water but rather on image they associate with the brand and its taste. There are other beverage companies, with much larger resources, that could begin using the same water purification process.
Internal...