TECHNOLOGICAL UNIVERSITY

FROM PERU

AREQUIPA BRANCH

Faculty of Management and Administration

International Business Administration Degree

Course
DEVELOPMENT OF EXPORT PRODUCTS AND SERVICES

Theme:

SOCOSANI

Belongs to:
José Alonso Cáceres Bustamante (ANI)

Teacher:
Helmut Monzón Rosas

AREQUIPA–PERU
2015
INTRODUCTION

Socosani, characterized by bottling the purest and most natural mineral water. Located at
36kms northwest of the city of Arequipa, surrounded by volcanoes, mountains, and in the middle of the

in the red earth desert, the valley of Socosani is hidden, nestled away.
hideout of inexhaustible water sources, which whimsically spill out to
to get lost in its crystalline river, playfully traversing the ravines and valleys that refresh
this earthly paradise.
CHAPTER I: COMPANY DATA

1. HISTORY

This valley full of vegetation was discovered in 1904 by

a pharmaceutical chemist, of Italian descent,
Marco Aurelio Vinelli, who spotted it from above in
one of his trips, but this story had to have
name and that is how Vinelli named the valley with the
Quechua words that referred to the characteristics of the place
SOCOS or carrizo, which was a hollow cane abundant in the
place and SANI that precisely referred to that
abundance. Thus, the name SOCOSANI is born, which in
indigenous language means 'place of abundance'. It was
precisely when drilling one of the rocks, which he found the
purer and more natural mineral water. Surprised by the
natural mineral properties of the water found, bottled it and sent it to France for
their study, where they said—according to what he recounts in his memoirs—that "they had never tried

something similar and that the discovery was literally a blessing." Thus, it begins a
great business adventure, so he decides to transport sophisticated equipment to the valley for the
time, to implement the first bottled mineral water plant in Peru and
Latin America, far from all pollution. Bottled at its own source, the mineral water
Socosani comes from the melting of the Chachani Volcano (6,075 m above sea level) located in the

city of Arequipa, which traverse underground channels of sedimentary rocks

consolidated limestones, which contain the extraordinary mineral properties that water
it collects along its way and naturally converts it into Socosani Mineral Water, rich in
Magnesium (mg), Calcium (ca), Potassium (k), Sodium (na) and Bicarbonates, which gives it that flavor

unmatched.

On July 2, 1926, Socosani S.A. was founded as a company.

The Socosani Natural Mineral Water is bottled at its source.
to maintain all its health and purity qualities. Benefits of Calcium,
of Potassium and Magnesium. Difference with table water.

1.1. PRODUCTS AND/OR SERVICES

Soda water from Socosani

Soda-free Socosani
Socosani lemon
Energina
Socosani award
Socosani black
Socosani mandarin
Socosani tropical
Esmart
Sofruit
Description

Peru lacked a cocktail that brings together quality ingredients with a natural touch,
healthy and above all delicious; that is Black by Socosani, a different cola, for
the same that is prepared in the Socosani Valley, with very good acceptance in all
ages and especially in the youth audience.

Description

How many times as children, young people, or adults have we enjoyed prizes that have been given to us?

Given various reasons, don't we feel happy when we receive it?...

Socosani, brought you a Grand Prize, Socosani PRIZE: The red soft drink of color
intense, with a delicious strawberry flavor and made with water from the Socosani valley.
Description

The only exclusive carbonated drink with natural mineral water, which is also healthy and
with the exquisite taste of lemon verbena, it has become since 1956 the preferred drink of
the children, youth, and adults of the southern region of Peru. With this drink, you are drinking water

100% Natural Mineral with its exquisite flavor.

Description
It represents life, joy, flavor, that is, how good we feel when we drink this.
Quality product that has the special touch of Peruvian lemon. SOCOSANI LEMON
With its original flavor, it has quickly become the favorite of consumers.
of water in the southern region of the country.
Description
Quality product made with water from the Socosani valley and with the exotic flavor of
a tropical fruit that, besides being a source of health, has dietary properties with the
an extremely important addition of being 0 sugar.

Description

Bottled at its own source, Socosani water is filled with 100% natural minerals.
contributing to the health of its consumers, strengthening bones and teeth through
calcium that contains, relieving stress thanks to magnesium, helping digestion by the
bicarbonate from the water, replenishing the salts and minerals lost due to wear
physical, in addition to being a natural moisturizer that every body needs.

[Link] OF SOCOSANI NATURAL MINERAL WATER

1,463 ppm
89 ppm
Calcium: 140 ppm
Potasio: 16
 Sodio: 225
Bicarbonates: 1,239 ppm

[Link]
Socosani natural mineral water is marketed under two private brands: "Agua Socosani"
with gas and 'Agua Socosani still water', in two presentations each: 0.620 liters and 2.000
liters. These products are leaders in the natural mineral water market in the area.
South of Peru.

In addition to mineral waters, Socosani markets three brands of soft drinks:

“Energina”, “Black de Socosani” y “Premio de Socosani”, en dos presentaciones: 0.500
liters and 2,000 liters and 3,000 liters in Black from Socosani. Being close to continue.
growing in different formats. Likewise, we produce two brands at our Plant
dietary flavored waters, both also successful: 'Socosani Lemon' and 'Socosani'
Pineapple”, in 0.500 liter format.

[Link] CHART
In the company located at Av. Pumacahua 717 Cerro Colorado-Arequipa, there are a total of
150 workers, including administrative staff and plant employees. Among the administrators
The company has 2 majority shareholders.

General Manager

Administrative Manager

Commercial Manager

Sales Area Accounting area HR Department Production area

 [Link] SEGMENTATION

The soft drinks and mineral water from the Socosani company redirected their market,
previously it was considered a drink for lower class people, however
in order to gain ground and expand its market share with the Premium Energina soda,
now aimed at young people and adults with stable economic solvency aged 17 to 50
age of socioeconomic level A/B, C+ and C. With exclusive soft drink with water
natural mineral, which in addition to being healthy has the exquisite flavor of lemon verbena. It is a
sodas for young people and adults who enjoy having a good time with a good
soda.

Since our product can achieve a high level of segmentation, in relation to

The geographical area in which we develop our activity does not have the same acceptance.
not the same purpose in some areas as in others.

For example. In the city of Lima

[Link] SEGMENTATION

The SOCOSANI company reaches the entire southern macro region of the country, such as Ica, Arequipa,

Moquegua, Tacna, Puno, Cusco, Madre de Dios (Puerto Maldonado), Apurímac and Lima
(expanding products in supermarkets).

[Link] POSITIONING

The product has the ability to make people feel true emotions that
they connect the consumer with the brand.

The user and the brand feel identified. SOCOSANI sells more as a brand than
as a product, it is sold as a worldview of life.
CHAPTER II: STRATEGIC PLANNING

2.1. MISSION

To practice and promote the quality of life in the human capital of the company, seeing themselves

reflected in the health commitment to the consumers of our products.

2.2. VISION

To be the best bottling company in Peru and in recognized international markets.

for the quality of our products and services.

2.3. Values

Teamwork
Responsibility
Punctuality
Commitment
Respect
Ethics
Dedication

2.4. GENERAL OBJECTIVE

Produce and market mineral water of optimal quality to position it in new

markets.

2.5. SPECIFIC OBJECTIVES

Keep the source of our waters in optimal conditions, to avoid

pollution in the raw material.
Increase the communication plan for SOCOSANI mineral water.
Achieve growth in the sales of SOCOSANI mineral water at the regional level
Keep the production plant in operational conditions.
Goals

Maximize growth and profitability in order to create value for our

shareholders.
Encourage teamwork in a constructive and communicative environment.
open in day to day.
Increase and promote the level of acceptance regarding the consumption of mineral water
all kinds of audience.

[Link] POLICIES

The company will offer a 20% discount on defective merchandise.

2.- The company will be responsible for collecting payments from customers through collectors, or
also if the client wishes to make a payment before its due date they can do so in the
company offices during the established hours.

3.- Attending to the customer is the responsibility of all members of the company.

4.- The interest for being late on a payment will be 5% on the current balance.

5.- The company will only accept cash payments and credit sales.

[Link] MATRIX
 STRENGTHS WEAKNESSES
F1. Spring of water D1. Weakness of the network of
own distribution
F2. Low prices towards D2. Not recognized at the level
end consumer national
F3. Regional company [Link] activity
recognized in communication
Lack of knowledge in
the difference of water
mineral and table water.

OPPORTUNITIES FO DO
O1. Attend to markets F1.O2. Arrive at D1.O1. Increase the channel of
customer add-ons final consumer with a distribution reaching
O2. Change of lifestyle product capable of new markets.
towards practicality and the preserve your health and D2.O3. Use a
Consumerism being a quality of life. updated benchmarking.
potential for producers F2.O1. Obtain D4O2. Spread
of drinks. loyalty of our specific knowledge
O3. Diversification of target clients. about the product for the
market. F3.O3. Embrace new new consumers
markets. finals.
THREATS FA YES
A1. Change of needs F1.A2. Reduced prices D1.A3. Not having a good
and consumer preferences for low costs. distribution channel no
A2. Price war of the F2.A3. By reducing costs we can reach the customer
competitors we offer alternatives meta.
A3. increase in consumption of cheaper than D4.A1. The lack of
soft drinks and substitute products our products product knowledge
for our consumers substitutes. You can lose clientele.
F3.A1. Offering D3.A2. Does not carry out

healthy products advertising for reduction

adopted to the costs.
needs and tastes of the
consumer.
CHAPTER III: STRATEGIC POSITIONING

3. STRATEGIC POSITIONING

All strategies have a reason for being. Market penetration is one.

constant, not only expansion into new markets but horizontal penetration that
allows greater presence of our products at sales points and greater ease of
that these are found by our customers.

The strategy that the company has developed has been outlined throughout this interview:
diversification, focused on everything that people can drink -except for spirits- and
with a marked emphasis on health and well-being, generating a love for the brand, that
produce unconditional loyalty, for having a high-quality product.

3.1. PROMOTIONAL STRATEGIES.

Advertising.
Sales Promotion.
Personalized sale.

3.2. TYPES OF INFORMATION SYSTEMS

Among the external factors found in the universe or environment are:

The clients
The Regulatory Entities
The suppliers
Competitors
Shareholders

3.3. STRATEGIC SYSTEM

Market expansion
The company has strategically located plants in Arequipa to supply the
Peruvian market.
 Marketing and Sales:

Offering quality at a low price.

Pricing strategy.
Higher performance in high-volume presentations. The development of this type of
presentations have allowed him to reduce production costs, since by not
maintain low-liter presentations use fewer labels and caps.

3.4. BALANCED SCORECARD

It is a tool that continuously shows when a company and its employees

they achieve the results defined by the strategic plan. It is also a tool that
helps the company express the necessary goals and initiatives to meet the
strategy.

To support the strategic planning of our business, we have implemented a

Balanced Scorecard, which evolved from a Management Control Dashboard that
I managed transactional management indicators at three levels. This tool allows for performing
the planning and monitoring of the organization's comprehensive management, showing the
behavior of the management indicators related to the goals and objectives
strategic.

3.5.E-BUSINESS

The E-Business Solution as a connectivity platform seeks to exchange and share.

information with suppliers and service companies, with the aim of optimizing and
reduce costs in the supply and logistics processes.

Having detailed and summarized information from various periods allows for an adequate
analysis, which facilitates a segmented management of the market.

[Link]

Main awards granted to SOCOSANI as the best natural mineral water in Peru
and among the best in the world
Year Prize Institution Country City

1995 Golden Quality Trophy Trophy Buenos Argentina

GOLDEN TROPHY FOR International to the Aires
QUALITY Quality

2005 Golden Trophy for Food and Trade Leaders of Spain Madrid
NEW MILLENNIUM Club Drinks Club of
AWARD Leaders del
Trade

2006 Food and Trade Golden Trophy Leaders of Spain Madrid

NEW MILLENNIUM Club Drinks Club of
AWARD Leaders of
Trade

2007 Gold Trophy of Food and Trade Leaders of Spain Madrid

NEW MILLENNIUM Club Drinks Club of
AWARD Leaders
Commerce

2007 Business Management Award Chamber from Peru Arequipa

of the excellence of the Americas Commerce of the
Americas

2007 ISO QUALITY Award 2007 For Quality PERU Peru Arequipa
Quality, Service, Coverage, Quality Total
Organization and Prestige Way a the
Excellence

2008 Gold Trophy for Technology and Trade

Leaders' France Paris
NEW MILLENNIUM Club Quality Club of
AWARD (Granted only once to Leaders of
 for the 30th anniversary of the event and with Commerce

extraordinary character

CHAPTER IV: THE BRAND

Highlights the authenticity and distinction of the brand, simple and elegant logo.
stylized and a drop that contains the essence of Socosani, the volcanoes of
Arequipa, the valley and its underground springs, executed with a style inspired
in the characteristic embroideries of the Colca Valley
Authentic natural mineral water

4.1. BRAND CONTRACT

High-quality water with intrinsic benefits: 100% pure and natural, which replenishes the
sales and natural minerals lost due to daily physical and mental wear.

4.2. FUNCTION WORD

Socosani sells 'Health' as it provides a pure and natural product, with salts and minerals.
that are important for the proper functioning of the body.

4.3. Value of positive attributes towards the product:

Healthy product

Arequipeño product, Peruvian and economical

 It is different because it is a natural product.

Its competitive advantage over others is that it is a natural mineral water.

It helps to eliminate excess weight, as it contributes to metabolizing the accumulated fat.

Reduces constipation

Increase the level of iron in the body

Ingested with meals, they promote liver and biliary activity.

It is traditional

High demand in the local market

CHAPTER V: DISTRIBUTION CHANNEL

DISTRIBUTORS ACROSS THE SOUTHERN REGION OF PERU

Socosani uses vertical and selective distribution, selling its products to various
wholesalers and retailers (but not through all of them), placing the product in the highest
number of points of sale frequented by our target segment.

That is to say, it is carried out through a direct distribution to the frequented points of sale.
 Manufacturer

Wholesaler Retailers

Consumer

TRANSPORT

The transportation of the Socosani product is done by land using trucks and
Vans on the following map show the destination of the product from Socosani for the
different departments.

CHAPTER VI: ADVERTISING

6. COMMUNICATION STRATEGY

The advertising strategy of Socosani was developed around the following guidelines:

Positioning: Socosani is the authentic mineral water.

Benefit: Socosani is the healthiest way to 'take life.' Natural mineral water.
Socosani is health.

Support: Socosani is the only 100% pure and natural mineral water that replenishes salts and the
minerals lost due to daily physical and mental wear.

Character: Innovative, modern, healthy.

6.1. PROMOTION

One way to promote the socosani product is to go back to its long history of
stay within the market as can be seen in the following text.

Since 1926 until now, the SOCOSANI family is made up of water.

Natural Socosani mineral, the rich Energina, the delicious Black, the refreshing Premio,
the unparalleled Socosani Lemon and this last one: Socosani Pineapple which is a complete explosion of

freshness! .. We invite you to try it!

6.2. ADVERTISING

Television
Social networks
Web page
Youtube
Advertising posters
Within advertising, the Socosani company has decided to categorize its product with
various methodologies such as poster advertising, and
even on the labels of their packaging.

ATL

SOCOSANI announces in media such as television, radio mainly, etc.

BTL

8th beach race on Energina sand 2014 La Punta - Camaná

CONCLUSIONS

Socosani has a very good and immediate acceptance generating a

constant and growing demand.
There is the feasibility of exporting bottled mineral water from Arequipa to the
continuous departments, from which a range of possibilities opens up for
the expansion and diversification of the product portfolio of companies
locales.
Socosani is a Peruvian and Arequipeño product that is well received in the southern market.
from Peru, with great opportunities to be the best at the national level.