HISTORY

SR, Inc. is one of the world's largest food and beverage companies. The corporation's principal businesses
include:

 Beverages
 Sports drinks
 Regional juices

SR, Inc. was founded in 2006 through the merger of S and R. Regional was acquired in
mid of 2006. SR’s success is the result of superior products, high standards of
performance, distinctive competitive strategies and the high level of integrity of our
people.

SR brands are available in nearly 20 cities and generate sales at the retail level of about
Rs.50 million.

KR offers product choices to meet a broad variety of needs and preference -- from fun-
for-you items to product choices that contribute to healthier lifestyles.

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INTRODUCTION
At SR, we believe that as a corporate citizen, we have a responsibility to contribute to the
quality of life in our communities. This philosophy is expressed in our sustainability
vision which states: “SR’s responsibility is to continually improve all aspects of the world
in which we operate – environment, social, economic -- creating a better tomorrow than
today.”

At SR Corporation, consumer satisfaction is of utmost importance. In response to

consumer interest, this page is designed to provide ingredient information frequently
requested by our consumers. We are initially providing information on caffeine as set
forth below and we expect to add information in the future about other product
ingredients such as sweeteners and colors.

SR is a world leader in convenient foods and beverages, with 2006 revenues of more than
$12 billion and more than 15,000 employees.

SR DELIVERS:

 Consumer preferred brands

 Equipment that delivers top quality SR- beverages
 Marketing that keeps Beverages sales growing
 Service never down

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VISION & MISSION
Mission

“To be the world's premier consumer products corporation focused on convenient foods
and beverages. We seek to produce healthy financial rewards to investors as we provide
opportunities for growth and enrichment to our employees, our business partners and the
communities in which we operate. And in everything we do, we strive for honesty,
fairness and integrity.”

Vision

Our vision is put into action through programs and a focus on environmental stewardship,
activities to benefit society, and a commitment to build shareholder value by making SR
truly sustainable corporation.

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SPLASH- PRODUCT INFORMATION

Enjoy the crisp, refreshing taste of Splash – 100% pure, non-carbonated, purified
drinking water. The consistent purity and great taste of Splash are guaranteed by means of
a state-of-the-art purification process that includes reverse osmosis and carbon filtration.
Since its debut in 2006, Splash has won over consumers with its great taste and purity.

It’s true. Water is good for you. The more you drink, the better you feel and since our
state-of-the-art HYDRO 7TM purification system removes substances most other bottled
waters leave in, you get pure water and perfect test every time.

INDIVIDUAL SIZES:
 500- ml bottle
 1.5- liter bottle

HOW PURIFY?

To bring you water as pure as Splash, they create the state of the art Hydro-7 TM

purification system. See 7 step of Splash to pure water and perfect taste.

1. Perfiltration

With this first filter, that says

Goodbye to tiny-sized particles
In water.

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2. Polishing Filter

Any smaller particle that gets through,

this first round of polishing filter will
catch them.

3. High-intensity Light

At this stage, a burst of high-intensity

light imparts energy to the water stream
to protect against naturally occurring
organic substances in the water.

4. Reverse Osmosis (R.O.)

Reverse Osmosis uses pressure and a

hyperfilter to remove over 98% of
the Total Dissolved Solids (TDS)
from our water.

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 5. Charcoal Filtration

Time to isolate those trace

elements that can affect the taste
of water by using a charcoal
filter.

6. Polishing Filter

Here’s where every H & O gets a

nice polish. Not with a soft cloth.
But with a polishing filter that’s
designed to make your water
crystal clear.

7. Ozonation

Corporation’s final seals in the

purity. By passing purified oxygen
molecules are brought together as
assurance that unwanted particles are
kept away.
After they’ve done their job, they
revert back to double oxygen
molecules ensuring you enjoy pure

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 water and perfect taste with every
bottle of Splash.

8. Pure Satisfaction

That’s what you get when the only

thing you taste in your water is water.
Pure water, Perfect taste, Splash.

WATER FACTS
What is Splash?

 Splash purifies its water with the HydRO-7 purification system.

TM

 The HydRO-7 purification system delivers water with an average TDS of 4 ppm,
TM

which is 2.5 times lower than the FDA standard of 10 ppm.

 Splash delivers pure water with perfect taste every time.

Who’s hydrated?

 Cities most aware of the health benefits of water consumption are Karachi,
Lahore, Islamabad, Rawalpindi, Faisalabad, Multan, Hyderabad, & Sukker
 Research shows that residents of Karachi drink the most water during the course
of an average day.
 Resident of rural areas consumes least amount of water.

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What’s bottled water?

 Bottled water is regulated under standards set by both the Environmental

protection agency and food & drug administration.
 The food & drug administration total dissolved solids TDS as a measure for
purity.
 TDS is sum of all dissolved solids in water measured in parts per million (ppm)
 All bottled water contains TDS.
 Spring water is delivered from an underground formation from which water flows
to the earth’s surface and is treated to remove bacteria and other organic material.
 FDA regulations mandate a maximum TDS of 500 ppm for spring water.
 Purified water is sourced from EPA regulated water systems that already provide
safe drinking water. FDA regulations mandate a maximum TDS of 10 ppm for
purified water.

HEALTHY HABITS

Keeps the water flowing year round, even during cold months
When it’s cold outside, your body needs extra energy to maintain the right temperature.
Drinking water can do that and help keep you warm.

Make sure your children drink enough water

Children drink water to balance their intake of other beverages- especially during
activities.

Drink plenty of water throughout the day

Make it easy. Carry a bottle of water when you commute to work or run errands.

Don’t substitute caffeinated or alcoholic beverages for water

Have a glass of water with each caffeinated or alcoholic beverage.

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Develop good water drinking habits now
Your “thirst signal” decline with age, so it’s important to develop the habit of drinking
plenty of water even if you’re not thirsty.

Don’t wait until you are thirsty to drink water

By the time you feel thirsty, you’ve probably already lost two or more cups of your total
body water.

Start and end your day with water

Your body losses water when you sleep, so drink a glass of water before going to bed and
again when you wake up

THE IMPORTANCE OF WATER

 Although a person can live without food for several days, a person can live
without water for just a few days.
 At normal activity levels, you lose 2-3 cups of water a day in perspiration. But
during an hour of vigorous exercise, you sweat out approximately a quart of
water.
 Water plays a vital role in regulating your body temperature at a perfect 98.6
degrees, delivering nutrients and oxygen to cells, removing waste, cushioning
joints and protecting organs and tissues.
 Up to 60% of your body is water. Your brain is 75% water, blood is 82% and
lungs are nearly 90% water.
 Water ranks first as the single most abundant substance in the human body.
 Next to oxygen, water is your body’s most important nutrient.

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KEY ACTIVITIES INVOLVED IN NEW PRODUCT DEVELOPMENT
PROCESS AT KR CORPORATION

a) Idea

b) Initial screening

c) Preliminary Investigation

d) Pre development business and financial analysis

e) Product development

f) In house product tests

g) Customer product tests

h) Trail production

i) Precommercialization business analysis

j) Product start-up

k) Market launch

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NEW PRODUCT DEVELOPMENT PROCESS AT KR
CORPORATION

This process starts with the ideation for the new product or innovation in the existing line
of products. Mostly the source of the idea comes through the ongoing marketing planning
and as well as from the ongoing corporate planning. Afterwards the idea passes through
the first gate that is called the initial screen. At this point the idea is matched with the
policies of the corporation that whether it is strategically fit with the corporation’s
policies and approach or not.

1. INITIAL SCREENING

This is the first step after the ideation. The initial screening is a basic rough picture which
is much needed before the launch of any type of new product. Every corporation indulges
this step as a prior to all steps. KR does the same thing at the launch of their new deals.
The Splash water product was already researched as well as launched in North America.
In Pakistan they just imitated the previously launched product; in this they captured new
market; initial screening was the first step toward launching Splash in Pakistan; the below
figure shows the first gate of whole process is initial screening.

Initial Screen

Idea Stage 1
te1 11
a
G
 Ideation Preliminary Investigation

2. PRELIMINARY INVESTIGATION:
This is the first stage of the whole process, this stage thus provide the preliminary market
assessment as well as technical information- at low cost & in as short time- to enable a
cursory and first pass financial analysis as input to gate 2. Because of a limited efforts
and depending on the size of the project, very often stage one can be handled by a team
of just several people perhaps from marketing and from technical group. The below
described preliminary market and technical assessment in KR corporation.

a) PRELIMINARY MARKET ASSESMENT

A preliminary market assessment is one facet of stage 1 and involves a variety of

relatively inexpensive activities; In this stage KR worked for identified market size,
market potential, and the scope of the water project in the Pakistani market, as they
researched that most of the disease start from the water that people drink that is not
favorable for their life; and selected major cities of the Pakistan. The KR mostly in other
countries has done the preliminary market assessment.

This assessment is usually the in-house assessment where we convey message to the
headquarter at North America that there is a demand of drinking water, this assessment is
done by our local managers, we observe that this particular drinking water should be
launched for this particular group, because people need it. There is so many local
companies serving major portion of the Pakistani markets, only nestle corporation was

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providing the better purified water, that’s productivity was not able to meet the demand
for their product. So on that basis market demand for water was high and supply was low,
customers ask for nestles but not available in market they use low quality product. So, we
organize analysis which are rough and that tells us that should we launch this new
product or not.

b) PRELIMINARY TECHNICAL ASSESMENT

It involves a quick & preliminary in-house appraisal of proposed product. In this stage
every corporation like KR think about technical assessment, what technology will be
used to produce the product to satisfy customer’s need. In this process they gather
information related water purification system and they reached at the decision, Splash
purifies its water with the HydRO-7 purification system. This system provides the
TM

customer with quality drinking water as much as nestle provide to their customers.

After this the concepts and things that are developed in the first stage are passed thought
the second gate that is second screen in which the thorough screening is done, e.g. the
technology is to be considered that whether the technology is present in the corporation
or not for the new product. Do the developed concepts strategically fit with the
organizations production process or not? Is there any need of this new idea in the market
or not? The marketing research department does the perceptual mapping.

Second Screen

Stage 1
2 Stage 2
e
at
G

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 Preliminary Investigation Detailed Investigation

2. DETAILED MARKET STUDY

After this gate the second stage of the product process starts that is detailed investigation.
As shown from the name detailed investigation in this stages the commercial viability of
the new product. The financials of the new product are made on the basis of past
experiences and the future estimates. The project evaluation is being done here.

Market study fir this new launch has been done but it is not that detailed as it should be
and as we do in other but few countries, in other countries like North America, China,
Japan etc. Detailed market study was conducted at Pakistan before the launch of Splash.
At that time it was analyzed that Splash would get a success in all market of Pakistan, the
Pakistani market is well judged by the KR Corporation and here basically people want to
change themselves very soon because KR is well known brand worldwide, Splash bottled
water ads written that it’s product of KR Corporation so it make good impression for
consumers.

3. PRE-DEVELOPMENT BUSINESS & FINANCIAL ANALYSIS

There is not much pre-development business practices which they do because they
acquire simple strategy that how much we have to produce, in how much time, are almost
similar to over all their product, process of production is much similar to their other
beverages products so they didn’t faced any problems regarding machinery. Financial
work is completed and there was little risk involved in launching water product (Splash).
We have done several analyses at pre-development stage, which we cannot disclose to all.

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 Decision on Business Case

Stage 2 Stage 3
e3
at
G
Detailed Investigation
(Build Business case) Development

In the third stage gate of the process for proceed further. After that the new product
concept is entered in the phase of development, the third phase of product development
process at KR Corporation.

4. PRODUCT DEVELOPMENT

In the third stage, the development for the new product is done, the product specifications
are made and technicalities are being set for the production. The chief engineer heads the
new product team and played the following role:

 Coordinating broadly, not just in engineering but also production and sales

 Coordinating the entire project from concept to market

 Specification, cost target, layout and major component choices, making sure that
each bottle contained similar minerals as written on the bottle.

 Communicating directly and frequently with designers, top management and

engineers.

Post Development
Preview

Stage 3 Stage 4

e 4
at
G
15
 Development Testing & Validating

Splash has been made for the internal trials and test by the corporation has been done.
This all done in the testing and validation process, the fourth stage, which also includes
the customer tests. The corporation has got the database of their customers so they test
their products by trial test in-house and with customers.

5. IN-HOUSE PRODUCT TEST

The KR Corporation follows high TQM standard as it is certified with the ISO standards,
they maintain their quality they have quality control department, Quality assurance
department, having several laboratories for quality check. Splash product has it’s separate
all of the above written departments, Splash water bottle is certified with ISO 9001
standards. So in this they control their product quality performance every time. Quality
assurance department guarantied that every drop has same test, and quality.

6. CUSTOMER PRODUCT TEST

The fourth stage, which also includes the customer tests. The corporation has got the
database of their customers so they test their products by trial test in-house and with
customers. This was not held at Pakistani market, we as member was the corporation’s
customers testing our product. This type of test held in North America, and Japan. Our
customers are fully aware of our taste; we know what they expect from us and what the
needs of our customers & we are actually providing to them.

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7. TRAIL PRODUCTION

The trial production is also done in this development process, because the main focus of
the corporation at the end of the process is based on three things that are as follows:

a) Customer satisfaction

b) Time to market

c) Cost

In the trial production the production time is being improved. Because the time to reach
the market is important for the corporation. At last the project is again analyzed after the
changes implemented in the development and validation & testing stages.

8. PRECOMMERCIALIZATION BUSINESS ANALYSIS

As far as the commercialization is concerned, all the decisions are made that how it will
work and how we’ll be operating a certain thing. Business analysis are almost done and
financial analysis are also at the last stage and about to complete, as every business took
some time to finalize its decisions.

Precommercialization
Business Analysis

Stage 4 Stage 5
G
at
e5

Testing & Validating Full Production &

Market Launch

In 5 stages the proper and full production process starts and the new products are ready to

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enter in the market

9. PRODUCTION START-UP

Splash water bottles have fully started into production, have good capacity to satisfy
customers demand, still supply meets the market requirement, as soon as we capture
major market share we will enhance our plant.

10. MARKET LAUNCH

For the launch the target market demographic has been studied and through various
channels the new product is launched. Now Splash have covered majors cities of
Pakistan, as in Karachi Splash is available in major stores, such as Aga’s, motas, cannes
mart, and sani’s supper store; we also other small stores, as well as institutes, restaurants,
hotels, etc. The main marketing task for this product is to make availability for customer.

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SWOT ANALYSIS

Strength:

 Brands image

 Financially sound

 Distribution channel/coverage

 Technology advancement

 Quality
 Price competitive

 Personnel aspect

 Market expertise

 International component

 High promotional activities

Weakness:

 New to the corporation

 Low market share

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Opportunities:

 Capture the market

 New areas

 Market potential

 Brand awareness
 Increase in investment

Threats:

 Higher availability of competitors

 Direct competitors are about to enter in Pakistani market.

 Technological environment

 New in market

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4 P’s OF SPLASH

PRODUCT

 In many countries, Splash is preferred by the consumer who likes

quality goods.

 Research shows that residents of Karachi, Islamabad, Rawalpindi,

Lahore, Hyderabad, drinks the most water during the course of an

average day.

 Splash is certified with ISO 9001 standards.

 Splash come with the new opportunity for the corporation to come

into market.

 Splash serves consumer worldwide.

PRICE

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As in Pakistan price allocated for the bottled product is very competitive
as nestle bottle water 500 ml Rs: 15 as Splash 500ml price Rs: 10 only, for
1.5 liters nestle priced Rs: 25, Splash 1.5 liters bottle Rs:20 only. But in
the international market may be higher then the Pakistani market.

PLACE
As KR is a multinational corporation, Splash is one of the good selling brand, has a
proper coverage internationally and as well as domestically.

Domestically Splash has covered the following cities:

 Karachi
 Islamabad
 Lahore
 Rawalpindi
 Murree
 Gujranwalla
 Faisalabad
 Multan
 Hyderabad
 Sukker
 Quetta
 Pishawar

Splash has captured international market as well the following countries where you will
find Splash:

 Australia
 Brazil
 Canada
 China

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  Finland
 France
 Japan
 Malaysia
 Pakistan
 Singapore
 USA

PROMOTION
In Pakistan Splash is advertised only thought the printed media, it
includes, signboards, newspapers ads, magazine ads, and so on. As the
printed media is the easy and less costly step toward publicity of the
product. So Splash is new in the market does not want to spent more on
the TV ads, as internationally they have ads on internationally TV
Channels. The standard of advertising they are maintaining through out
the world.

SUSTAINABLE ADVANTAGE
Three major sustainable advantages give KR a competitive edge as we operate in the
global marketplace:

1. Big, muscular brands;

2. Proven ability to innovate and create
differentiated products; and
3. Powerful go-to- market systems.

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Making it all work are our extraordinarily talented and dedicated people.

When we take these competitive advantages and invest in them with dollars generated
from top-line growth and cost-saving initiatives, we sustain a value cycle for our
shareholders.

In essence, investing in innovation fuels the building of our brands.

This in turn drives top-line growth.

Dollars from that top-line growth are strategically reinvested back into new products and
other innovation, along with cost-savings projects.

Thus, the cycle continues.

CONCLUSION

In this 3 month research study I conclude the following things.

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In Pakistan KR Corporation launched water product, as water product was already
available in the market, the corporation saw in bottle water opportunity to come into the
market by serving people with better quality at low cost. It’s totally new to the
corporation but it’s already in the market.

Splash bottled water serves domestically as well as internationally, domestically they

serve major cities of Pakistan, Includes Karachi, Islamabad, Lahore, Rawalpindi,
Hyderabad, Multan, Faisalabad and some other major cities.

Splash have similar process steps that have written in the new product development book,
I have already discussed those steps in this report.

RECOMMENDATIONS

 Corporation should introduce their product into the other cities of Pakistan

as like as KR Brand.

 Corporation should maintain the quality of the bottle water

 Government should reduce taxes on the manufacturing companies.

 Corporation should be registered

 They should introduce large bottle for family packs, such as 19 liter bottles,

12 liter bottles.

 Maintain low cost as they are currently serving the markets of Pakistan.

 Corporation should have recycled program

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