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