Imagine this: You're starting a business, but instead of selling water bottles to people, you're giving them away for free. Crazy, right? Well, not so fast. What if I told you that these water bottles could become your canvas for advertising, a unique opportunity to turn them into promotional powerhouses for other brands while building your own success? This ingenious marketing technique flips the script on traditional business models and has proven to be a game-changer in the world of marketing and branding.

The business technique referred to above is often called "promotional marketing" or "promotional products advertising," specifically in the context of using branded merchandise to promote a business or brand. In the example provided, giving out free water bottles with branded spaces for other companies is a form of promotional marketing.

This approach is a form of promotional products advertising because you are essentially using a tangible product (the water bottle) to promote and advertise other brands. It's a win-win situation where the company giving away the free water bottles gains exposure and goodwill from the recipients, while the brands buying the branding space get a cost-effective way to advertise their products or services.

Promotional marketing can be a powerful strategy for increasing brand visibility and building positive associations with a target audience. It's commonly used at events, trade shows, conferences, and even as giveaways in various marketing campaigns.

The business model of distributing free water bottles with branded space has gained popularity in recent years and continues to be a viable option for entrepreneurs and marketers alike.

However, like any business model, there are both advantages and disadvantages to consider:

Advantages:

1. Cost-Effective Advertising: For advertisers, it's a cost-effective way to reach a wide audience. They can get their branding on products without the overhead of producing and distributing those products themselves.
2. Widespread Exposure: The free water bottles or other promotional products can be distributed at various events and locations, providing exposure to a broad and diverse audience.
3. Positive Brand Associations: The brands on the promotional products can benefit from positive associations with the act of giving and promoting sustainability (if using reusable items like water bottles).
4. Reciprocity and Goodwill: Recipients often appreciate receiving free items, which can foster goodwill and increase brand loyalty.
5. Revenue Generation: The business can generate revenue not only from advertisers but also from event sponsorships, partnerships, and collaborations.

Disadvantages:

1. Competition: There may be competition in the promotional products advertising space, making it challenging to stand out and attract advertisers.
2. Distribution Costs: Distributing free products can be costly, especially if targeting a large audience or attending multiple events.
3. Sustainability Concerns: In the case of single-use items, there may be environmental concerns associated with distributing large quantities of disposable products.
4. Logistics: Managing the production, distribution, and tracking of promotional products can be complex and require efficient logistics.
5. Brand Dilution: Associating too many brands on a single product could lead to brand dilution, making it less effective for advertisers.
6. Market Saturation: If many businesses adopt this model in a particular market, it can lead to market saturation and decreased effectiveness.

A US based company, FreeWater io has successfully implemented this business. FreeWater is an innovative advertising platform that utilizes premium spring water as a new type of advertising medium while prioritizing philanthropy and sustainability. Ten cents from each beverage is donated to a charity, WellAware, an Austin based non-profit, that builds water wells in East Africa. Every 150FreeWaters donates enough money to provide one person with a safe water source for the rest of their life. They claim they only need 10% of Americans to choose FreeWater so they can solve the global water crisis permanently.

The world is producing a million plastic bottles per minute and only 9% are being recycled. That's half a trillion bottles annually that will end up in landfills, rivers, lakes, and the ocean. Things have become so bad that scientists predict plastic in our oceans will outweigh fish by 2050. This is why FreeWater never uses plastic bottles, opting for sustainable options such as eco-friendly cans or cartons.

The majority of bottled water is contaminated with the chemical BPA. High levels of BPA have been linked to diseases such as hormonal disruption, diabetes, high blood pressure, infertility, breast cancer, and hazardous effects on the brain and behaviour of infants and young children, which is why FreeWater provides BPA-free premium spring water only.

Its cost depends on several factors:

1. Aluminium bottles or paper cartons
2. The number of units
3. Are they distributing the water or are you distributing the water
4. The location of distribution
5. Do you have a graphic designer on staff or do you need them to design it for you
6. Are you splitting the ad space with someone else?

Aluminium bottles have a MOQ of a pallet which has 1,680 units. You can split the label’s real estate with a total of three brands. The timeframe for delivery is roughly six weeks from design approval and payment. However, you should always place your order as far in advance as possible if you have a time sensitive project.

Paper cartons have a MOQ of 10k units. You can split the label’s real estate with a total of eight brands. The timeframe for delivery was 5 months since the supply chain was negatively affected by the pandemic, however now it is close to eight weeksfrom design approval and payment.

The viability of such a business model in a country like India can depend on various factors. Here are some considerations that can help determine its viability:

1. Market Demand: India's large and diverse population can provide a substantial market for this business model. However, it's essential to assess whether there is a demand for promotional products advertising and if businesses in India are willing to invest in this form of marketing.
2. Cultural Sensitivity: Understanding the cultural and consumer preferences in India is crucial. The success of this business may hinge on how well it aligns with local values, traditions, and environmental concerns.
3. Environmental Considerations: India has been increasingly focusing on sustainability and reducing single-use plastic. Using reusable/eco-friendly water bottles may align with these environmental goals and make the business more acceptable.
4. Demographics: India has seen a massive boom in the number of youths active on social media lately who might still align with the product as compared to the average local for whom it is something completely new. Understanding such dynamics is also crucial before beginning such a business.
5. Competition: Assess the level of competition in India's marketing and advertising industry. If the market is saturated with similar offerings, it may be more challenging to enter and succeed, but given the market is untapped as of now, it is an apt time to start.
6. Brand Engagement: Evaluate the willingness of Indian businesses to invest in brand engagement through promotional products. Understanding the marketing budgets and strategies of potential clients is crucial.
7. Distribution Logistics: Consider the logistics of distributing free water bottles across a vast and geographically diverse country like India. Efficient supply chain management will be essential.
8. Regulatory Compliance: Ensure that the business complies with local regulations related to advertising, branding, and product distribution.

Steps to follow to start this in your city:

1. Choose a target audience or audiences – For example, students, corporate employees, traffic guards and government employees, shoppers etc.
2. Make an estimate of how many bottles you will distribute in a day. E.g. 5000 bottles around the college area.
3. Get the costing of a small bottle of water and your labelling from a local manufacturer. E.g. Rs.3/- per bottle.
4. Add distribution cost of 0.50/-, assuming you will distribute 5000 bottles in one area with two people and one rented can.
5. Now that your costing is Rs.3.50/-, approach brands and charge them about 6.50/- per free bottle given and make a profit of 3/- per bottle or Rs.15000/- for every 5000 distributed. You can do the same for higher numbers and for larger quantities your costing will be lower.

In summary, the viability of this business model in India can be influenced by factors such as market demand, cultural alignment, environmental concerns, competition and so on. If executed strategically and in alignment with local preferences and values, it has the potential to be a viable business in India, offering opportunities for both businesses looking to promote their brands and entrepreneurs seeking to enter the promotional marketing industry. However, thorough market research and a well-thought-out business plan are essential to assess and maximize the chances of success.