Case Study (osp).docx

OH SO PURE WATER, INC.

Case Study Berato, Lutche Mae L. Pañoso, Mnenosyne O.

I.BACKGROUND OF THE STUDY:

Ali Khan ( A.K. ) established his company, Oh So Pure Water, Inc. (OSP), to market a product design to purify drinking water. The product, branded as the PURITY II Naturalizer Water Unit, is produce by Environmental Control, Inc. a corporation that focuses primarily on water purification and filtering products for industrial markets. Oh So Pure Water is a small but growing business. A.K. started the business with an initial capital of only 💲20,000 which came from his savings and loans from several relatives. A.K. manages the company himself. He has a secretary and six full time salesperson. In addition, he employs two college students part time salesperson, they make telephone calls to prospect to demonstrate the unit in the consumers home. By holding spending to a minimum, A.K. has kept the firm’s monthly operating budget at only 💲4,500- and most of that goes for rent, his secretary's salary, and other necessities like computer supplies and telephone bills.

II. STATEMENT OF THE PROBLEM How can Ali Khan’s current marketing strategy works for the current situation of the company.

III.OBJECTIVE: To meet the demand of the salesperson for higher compensation, reduce turnover and meet the desired quota’s per month.

IV. SWOT Analysis The following SWOT analysis captures the key strengths and weaknesses within the company and describes the opportunities and threats facing the industry. Strengths  

A growing number of customers through the adds in Google and Yahoo. The ability to meet customer's particular needs.



An already existing customer base.



The only PURITY II distributor in Texas region.



Distributor of product to retailer. Weaknesses



The need for salesperson



Capital expenses required to buy media space or time.



Difficulty in establishing brand equity. Opportunities



Participation in a growing market.



The huge diversification of potential customers, reducing risk if there is a downturn in a specific industry.



Operating efficiencies that are attainable as the business grows. Threats



Future/potential competition from a large company that decides to take a more flexible approach to meeting customer's needs.



Competition in other small water purification businesses that will arise in the future.

V. ALTERNATIVE COURSE OF ACTION ACA #1 OSP must target not only the residences like single family homes and apartment, but the unit is also suitable for use in boats and recreational vehicles. And it can be used in taverns and reatuarant, in institution such as schools and hospitals and in commercial and industrial buildings for wider range of market. ACA #2 Ali Khan's must increase the salary of his employees or salesperson in order for them to have the satisfaction in their works and to reduce the salesperson's turnover.

VI. RECOMMENDATION We recommend ACA #1, because by acquiring bigger market the salesperson will gain new customers, this will benefits the salesperson’s commission, meet the desired quota per month, and elevate the company sales.

VII. PLAN OF ACTION Acquiring new and bigger market will benefits the the employee and the company. Ali Khan can also grant the increase commission of the salesperson in order to reduce the turn over. The desired qouta per month which is 40 units will be possible because of the new customer. Retailers will continuously purchase the product from the company because of the new demand. Company websites like Google and Yahoo will also increase an

entrance of a new customers because of the large number of leads due to search adds place in the said website.

VIII. POTENTIAL PROBLEM Because of the wider market OSP will not accommodate all the new customers because of the lack for salesperson for telephone calls and appointment set up, as well as in accomadating new clients in website.

IX. FALLBACK ANALYSIS OSP company will provide the market with a wide range of water purification, but in order to provide and serve the wider market Ali Khan must hired more competitive salesperson so that OSP will fulfill the following benefits that are important to its customers. Selection: This industry has a wide variety of potential uses and OSP company will be able to offer solutions to everyone. Flexibility: OSP must be able to work with each customer's individual needs. Customer Service: Exemplary customer support is required since purified water is such an important variable for the customer's business and personal uses. Customer Care: OSP has been at the market for two years and they are more relevant to the customer base with so much interpretation and analytical