Development and Marketing of Services

Technological environment: currently observed trend in the industry to actively improve the existing production technology of mineral water. The process of modifying the traditional production mechanism, invented more than 100 years ago. The invention ionization fluoridation and iodization of mineral water on the one hand helped increase consumer characteristics of mineral water and on the other hand - to increase its value.
Currently, the main trend in the technology of mineral water is the process of increasing the purification of mineral water, its quality
The natural environment. With regard to mineral water the natural environment has a significant impact, as in the production of mineral water is used rather a lot of natural resources. In addition, global sales of mineral water is dom ...

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OPTION 1. CHOOSE A SERVICE (REAL OR PROTOTYPE) AND PREPARE A MARKETING STRATEGY FOR THIS SERVICE

To perform this task the first option has been selected: «Choose a service (real or prototype) and prepare a marketing strategy for this service.
The chosen company is The BonAqua Company, one of the leading retail operators of the natural drinking water in the world. In the factories of BonAqua there is the unique monitoring system that meets the latest requirements of international and Russian standards. The presence of the certified industrial laboratory equipped with modern analytical instruments, ensure quality control of raw materials, semi-finished products at all stages of production according to the requirements of technical documentation.
The main purposes of activities of the BonAq ua are:
1. Manufacturing and sale:
a. Production and selling of natural drinking water from own artesian well.
b. Production of equipment for water supply.
2. Services:
a. Production of shelving for storage tanks services.
b. Free shipping of natural drinking water in the home, office and country houses.
c. Provision of equipment for water supply in the rent.
The main product range is the mineral water “BonAqua" and fluoridated water "BonAqua" in packages of 10 liters; and mineral carbonated and non-carbonated water in packages of 0.3, 0.5 and 1.5 liters. The new product of the Company is water enriched of oxygen.

f. mutually beneficial relationships with both external and internal partners.
Promotion of products to potential and existing customers in BonAqua Company is carried out by some principles:
a. using of advertising,
b. methods of public relations (PR-activity),
c. methods of sales promotion and personal selling,
d. sales associated to the buyer (eg, insurance companies),
e. organization of business meetings,
f. direct marketing.
Price per unit of production will be composed as follows: the amount of material costs for water production units, labor costs, social taxes, company profit. Thus the cost of one unit should be at a approximate level of similar offers by competitors.
The BonAqua Company uses a unique technology which essence basis on follows. Water enriched with essential components of the body is not at the expense of dissolved salts, and mixing in certain proportions "osmotic water" and water from the well, pre-cleaned and disinfected.
1. Strategic Objective (3 -5 years). To form and strengthen the image of The BonAqua Company, with many years of experience in the production and sales of environmentally friendly products, offering products that meet western standards. Achieve constant proportion in the total amount of consumer customers - 20%.
2. Increase brand awareness of The BonAqua Company - to achieve spontaneous recognition by consumers at 50%, with prompt recognition - 90% of consumers.
3. Increase customer loyalty to the products of The BonAqua Company due to consumer reports information about the strengths of products and companies.
The concept of promotion is to interact with the media, the same for the company. In nationwide publications enough publications have to be provided for informing consumers about new technologies and products offered, secure knowledge of traditional services. Also it is needed to improve the efficiency of the company management system and to optimize the organizational structure.
Area activities of the new product currently includes market of water enriched by oxygen, which can be attributed to the priority markets.
For the company as a whole strategy of further development should be carried out in the following steps:
a. Increase market share.
b. Maintain its leading position in the market
c. Increase sales
d. Cost reduction
Well-developed external communications needs to promote successfully company’s services or products. The main form of advertising using by The BonAqua Company in Russia is billboards. It is the most traditional, effective and cheapest form of outdoor advertising. To draw attention to its products firm uses the following distribution channels:
a. daily newspapers, which have a wide scope of potential customers;
send to potential buyers of services brochures in the mail;
b. road radio that is listened by a large number of consumers in the cars;
c. participation in specialized exhibitions.
Advertising media are chosen to reach effectively the target audience's attention. Moreover, the main criteria when choosing distribution channels of advertising messages is to ensure maximum coverage of the target audience, the cost of compliance with advertising budget and compliance with the nature of the advertising message channel characteristics. In addition, the choice of means of advertising is done in such a way as to provide the necessary geographical coverage of consumers and the desired frequency and form of presentation.
The result can bring only a systematic publicity work, and it is important that emerging contacts were not separated from each other too long intervals of time: the best is the weekly contact. It is important because rare contacts are seen as one-time and have a very low commercial value, so the ads are done weekly.
However, it’s not enough to show consumers the dignity of goods and services. In general, to promote a new product firm uses personal communication channel, considering it has the most effective and efficient effect when working with corporate clients. At the same time, it uses the most quality-based approach and satisfying personal needs of each individual customer.
Communication with clients is carried out by sending:
a. information letters reminding them and proposals for new services;
b. invitation to the exhibition;
c. price list with information about price changes;
d. publication of the price list and presentations of finished projects on its website on the Internet.
OPTION 3. Develop a new service and prepare a marketing strategy
Investigation of marketing strategies devoted a lot of work of world scholars. At the turn of the 1980s and 1990s. many works were published: J. Lamb, G. Asselya, P. Dihson, D. Krevensa. It should be mentioned A. Kotler: textbook "Merketing Management" published in 1997.
Currently, there are many definitions of a marketing strategy, but they all share the concept of strategy as a conscious and well thought-out set of rules and regulations underlying the formulation and adoption of strategic decisions affecting the future state of the enterprise. The famous American scientist A. Chandler said that the strategy - "is to identify the main long-term goals and objectives of the enterprise and approve course of action, the allocation of resources needed to achieve their goals"

This definition is a classic view of the very essence of the strategy. First of all, we should define long-term goals of the firm. These goals must be reasonable and long-term, of course they should be updated taking into account the constant changes taking place in global markets in terms of real market relations.
I. Ansoff gives this definition of strategy: "strategy is a set of rules for decision-making, which the organization is guided in its activities." This definition allows us to come to a very important and significant conclusion - the strategy should be formulated always, but this is especially important if there was or is planned to transform the external or internal environment of the organization.
The scientific literature is known a number of analytical methods and models that are used in the development of portfolio strategy: Diversification, Porter's model, portfolio analysis matrix Boston Consulting Group, McKinsey matrix, PIMS project and others. When using these models, each product must be considered separately company that allows you to compare them with each other and with competitors. The proposed methods use different sets of variables, but in any case - a two-dimensional matrix, in which one axis fixed value of domestic factors, and on the other - external factors.
Michael Porter introduced three of its strategy to strengthen the competitiveness of the company in 1980 in his book "Competitive Strategy". Porter has described its strategy at a time when the positioning concept described Jack Trout and Al Rice only gained its popularity . The main essence of Michael Porter's strategies is that the successful functioning of the company needs to distinguish the competition, not being all things to all in the eyes of consumers that is known like nothing for anyone. To cope with this task, a company must choose the right strategy, which it is going to follow. Professor Porter identifies three types of strategies: cost leadership, differentiation and focus. With the latter further divided into two: focus on differentiation and focus on costs.
1. Cost leadership is very simple strategy. To be successful using this strategy a company must reduce costs and become a leader in this indicator in its segment. Typically, this type of strategy is absolutely clear to all employees of the company, especially if its activities related to the production of any goods. But being the most economical company in the industry is not an easy task. Firstly, it will have to use all the most modern equipment and try to achieve automation of all processes. Accordingly, a company trying to become the leader in cost needs as much as possible quality staff who will do their jobs faster and better.
In order to have lower costs, the company will have to serve a lot of different market segments. This is logical since the greater the scale of production the less it costs. This, according to Michael Porter, is the most important aspect of this strategy. Being a leader on the costs the company have to look constantly for new opportunities to save money, introducing new management techniques, the latest technical developments. Also the principles of differentiation can not be ignored, because there is a possibility that buyers consider the quality of the company's products is not worthy for them. And in fact, we should understand that low costs are not synonymous with poor quality products, and are not even synonymous with cheap products. Nobody interferes with proper positioning to sell goods at the same price as competitors. And due to the low cost company will be able to obtain higher profits.
Cost leadership strategy involves constant monitoring of the current situation. This strategy is very dangerous, because there is a high probability of the fact that sooner or later it will have a competitor which can make your costs even lower.
2. The strategy of differentiation. Earlier the basis of differentiation were unique trade offers. Now this is no longer true. In principle, the company's product can be a typical representative of the industry, but in the minds of consumers it will be special. Differentiation, just and concluded, is to take a unique place in the minds of consumers, operates a unique feature of the product.
Companies adhering to the strategy of differentiation may become victims of such problems as the big difference in costs to the industry leader. This can lead to the situation that the company will be not relevant, non-despite all its positioning. Also, it is likely that the company's product will be copied by competitors. In this way can be gone all differentiating advantage of the company (if it is associated with the product).
3.The strategy of focus is to select the defined segment in the industry, and focus exclusively on it to this definition. Retained group of buyers identified the company from the competition. Respectively, objective of the company is to look attractive for this segment of customers. Michael Porter divides focusing strategy into two parts. First is a focus on costs. Moreover, it is associated with focus on costs in dealing with one company dedicated segments, including the industry. Due to lower costs the company can achieve high competitive advantage in the eyes of their target group.
The problem with this strategy lies in the fact that while working with a small target audience, the company will have higher costs than the one which works on the entire industry. Finally, Michael Porter highlights another important threat - competitors can find a narrow segment of the market in which the company operates, thus seriously complicating her life.
Basic Strategy by Michael Porter is a classic management, and served as the basis for many current strategies.
Marketing Mix 4P – well-known scheme, which should help to develop market-logs of the marketing mix. It specifies in four areas, which should be covered by the program of marketing:
a. Product - anything that can be offered to a market for attention, acquisition, with using or consumption that might satisfy some needs. It may be a physical object, service, person, place, organization or idea.
b. Price - the amount of money or other property that the client changes to the benefits of possession or using of a product or service.
c. Promotion - actions that inform the target group of customers about products or services, its advantages.
d. Place - all activities of the enterprise, aimed at making a product or service available for the target category of clients.
In 1981 Booms and Bitner, developing the concept of marketing in services offered to complement the marketing mix with three additional P:
e. People - all people directly or indirectly involved in the provision of services, e.g., employees and other customers.
f. Process - procedures, mechanisms and action sequences, which ensure the provision of services.
g. Physical Evidence - environment, where services are delivered. Actions to inform the target group of customers about products its advantages and persuaded to buy. Material objects, which help to promote and provide services.
Kotler offers his classification of competitive strategies based on market share belonging to the enterprise:
a. the strategy for the market leader;
b. strategy contender for leadership;
c. strategy of the company successor;