Executive Summary

Package drinking water:

The fountain of all life. Even a toddler will tell you it is a prime need of the body. Sixty per
cent of our body weight is made up of it. Water can also be the cause of much misery.
Especially in India, where contaminated water continues to bring down millions with diseases
such as diarrhea, dysentery, typhoid, jaundice and gastro-enteritis.
Getting pure drinking water from municipal taps in cities and towns is now a luxury. At home
most people are forced to either boil water or install purifiers. While traveling or eating out in
restaurants, buying bottled water has become a necessity. This need has seen an explosion of
companies marketing safe drinking water in bottles across the country.
Now around 100 companies sell an estimated 424 million liters of bottled water valued at
around Rs. 200 crore in the country annually.
The tradition of bottled water and mineral water is not very old. Even in western countries the
practice of bottled drinking water started in 1950s. The trend of having mineral water gained
grounds in the market.
Since ancient time people have used water from mineral springs, especially hot springs, for
bathing due to its supposed therapeutic value for rheumatism, arthritis, skin diseases, and
various other ailments. Depending on the temperature of the water, the location, the altitude,
and the climate at the spring, it can be used to cure different ailments. This started the trend
of using mineral water for drinking purpose to exploit the therapeutic value of the water. This
trend started gaining momentum in mid 1970s and since then large quantities of bottled water
from mineral springs in France and other European The concept of bottled has been quite
prevalent in western countries due to greater health consciousness and higher awareness
about health and hygiene countries are exported every year.
In INDIA with exposure of media and exposure to international life styles, deteriorating
levels of potable water, increase in a number of water borne cases, increase in awareness
about health and hygiene and other related factors led to acceptability of concept of mineral

OBJECTIVE
Through this project my objective has been to understand the following:

To know about the current scenario of bottle water market.

The reasons for a stunted growth in the package drinking water brand

To know how the brand BOOND still rules the bottle water market

To know the marketing strategies applied by BOOND, its manufacturing

process its 4 Ps etc and what is its impact on the consumers

To understand and realize the needs and wants of consumers and how to
fulfill them

How is bottle water different from tap water?

Consistent quality and taste are two of the principal differences between bottled water and
tap water. While bottled water originates from protected sources - largely from underground
aquifers and springs - tap water comes mostly from rivers and lakes.
Another factor to consider is the distance tap water must travel and what it goes through
before it reaches the tap. In compliance with international regulations, bottled water is sealed
and packaged in sanitary containers. If a bottled water product is found to be substandard, it
can be recalled. This cant happen in case of tap water.
According to regulations in the US, when bottled water is sourced from a community water
system the product label must state so clearly. However, if the water is subject to distillation,
de ionization or reverse osmosis, it can be categorized that way, and does not have to state on
its label that it is from a community water system or from a municipal source.
Processing methods such as reverse osmosis remove most chemical and microbiological
contaminants

Competition
The bottled water industry has two other industries as its biggest competitors in from of
Water purifiers industry and the soft drinks industry. Though the water purifier industry
should be credited to have done the spadework, for setting up the foundation of bottled water
industry but still it acts as competitors especially in the household and institutional
consumption market. So the water purifier is a strong competitor in household and
institutional market the soft drinks market is a strong rather very strong competitor in the
retail consumption market.
Bottled water became a product in the West during the 1920s and developed rapidly. Huge
market size, numerous local brands and controlled price mechanism are some of the features
of the market there. Consumers in the West are quality conscious and display brand loyalty.
Indian consumers lack on both the counts.
In Asia, Indonesia is the largest and the oldest market for bottled water. In India, bottled water
is still not perceived as a product for masses though; the scene is changing slowly thanks to
low pricing and aggressive marketing strategy adopted by new entrants. Some surveys show
that truck drivers on highways form a major chunk of bottled water drinkers. Penetration in
rural areas is another significant factor that is likely to play a key role in the development of
the bottled water trade.
In comparison to global standards Indias bottled water segment is largely unregulated. Safe
water is rated with a different yardstick in different countries. In India, the aspect has been
overlooked for long. Indian consumers tend to believe that any bottled water is safe water.
This may not be the case.

Types of Bottled Water

There are several different varieties of bottled water. The product may be labeled as bottled
water, drinking water or any of the following terms.
Artesian Well Water: Bottled water from a well that taps a confined aquifer (a water bearing
underground layer of rock or sand) in which the water level stands at some height above the
top of the aquifer.
Drinking Water: Drinking water is another name for bottled water. Accordingly drinking
water is water that is sold for human consumption in sanitary containers and contains no
added sweeteners or chemical additives (other than flavors, extracts or essences). It must be
calorie-free and sugar- free, Flavors, extracts or essences may be added to drinking water, but
they must comprise less than one-percent- by weight of the final product or the product will
be considered a soft drink.
Mineral Water: Bottled water containing not less than 250 parts per million total dissolved
solids may be labeled as mineral water. Mineral water is distinguished from other types of
bottled water by its constant level and relative proportions of mineral and trace elements at
the point of emergence from the source. No mineral can be added to this product.
Purified Water: Water that has been produced by distillation, deionization, reverse osmosis
or other suitable process can be labeled as purified bottled water. Other suitable product
names for bottled water treated by one of the above processes may include distilled water if
it is produced by distillation, de-ionized water if the water is produced by deionization, or
reverse osmosis water if the process used is reverse osmosis.
Sparkling Water: Water that after treatment and possible replacement with carbon dioxide
contains the same amount of carbon dioxide that it had at emergence from the source.
Spring Water: Bottled water derived from an underground formation from which water
flows naturally to the surface of the earth. Spring water must be collected only at the spring
or through a borehole tapping the underground formation finding the spring.
Well Water: Bottled water from a hole bored drilled or otherwise constructed in the ground,
which taps the water of an aquifer.

Introduction
About Us

Supplier and manufacturer of packaged mineral water

Company Profile

Business Type

: Manufacturer / Supplier

Products
Supplier
Manufacturer

and

: Packaged mineral water

Contact Information
Company
Name Boond Packaging Pvt. Ltd.

Address

INDUSTRIAL AREA, SUBHASH NAGAR, KURAI ROAD, Sagar 470002, Madhya Pradesh, India

Phone No

Fax

91-7582-408910

91-7582-224455

Contact
Person Mr. Manish Jain (Sales Manager)
Mobile

+919755018610

Company Profile
Boond Packaging Private Limited was established in the year 2009. We are Manufacturer and

Supplier of Water Pouches, Fresh Packed Mineral Water, Plastic Water Dispenser etc. Our
team of professionals helps us to achieve accolades in the domestic market. We have
developed a fully fledged manufacturing unit that is well equipped with latest machines to
deliver quality products. We have been meeting ever single need of the clients by offering
them with customized solutions
as per their specification. Apart from manufacturing, we also provide complete attention to
the packaging of the consignments to ensure safe delivery of the products to the clients.
We constantly focus on expanding our expertise in product innovation as well as development
in order to meet the specific requirements of our clients. We have adopted ethical business
practices and values, that are reflected in our business operations. Through strong business
ethics and remarkable quality of product. Our entire workforce offers only the Internationally
acclaimed products to the clients. Our team members are working sincerely to help us in
receiving accolades from a wide range of clients; enabling us to occupy a trustworthy place in
the market. The exclusive ambit of services rendered by our company are executed by highly
professional and expert team. We believe in delivering our products and services with utmost
perfection, and to do so, we collaborate with our clients to completely understand their
requirements.
Quality Assurance
Our consistent efforts to achieve and retain international standards in our products, has
enabled us to carve a niche. Manufacturing top notch quality range is priority of our
organization and stand by this commitment we have imposed stringent quality checks at
various stages of production. Throughout the manufacturing process, our quality control
experts play a vital role in determining high quality of our products. They keep an eye on all
the production activities to ascertain an effective manufacturing process
Our Infrastructure
Our business operations are immensely supported by a sound infrastructural set-up. Our
infrastructure is facilitated with hi-tech manufacturing, designing, quality testing and
packaging facilities. Apart from an effective designing facility, we are empowered with a
sophisticated manufacturing unit. Our competitive range of products is fabricated by using
advanced machines & tools, installed in our manufacturing unit. Our flexible manufacturing
process, provides us an opportunity to alter our production quantities as per the changing
market demands.
Why Us?

Rich experience
Ability to meet clients specifications
User friendly product range
Economical pricing
Stringent quality mechanism
Sturdy infrastructure
Prompt services
Strong business ethics

The journey till now

2000: Introduces the 20-litre container to bring prices down from Rs 10 a litre to Rs 2 a litre.
1998: Introduces a tamper-proof and tamper-evident seal.
2000: BIS cancels BOOND's licence of a water bottling in Delhi [ Images ] since some of the
bottles did not carry ISI label; the licence is restored one-and-a-half months later.
2002: Kinley overtakes BOOND. The national retail stores audit by ORG-MARG show
Kinley's marketshare at 35.1 per cent compared to BOOND's 34.4 per cent.

BOOND TODAY
BOOND values its customers & therefore has developed 8 unique pack sizes to suit the need
of every individual. We are present in 250ml cups, 250ml bottles, 500ml, 1L, 1.5L, 2L which
are the non-returnable packs & 5L, 20L which are the returnable packs. Till date the Indian
consumer has been offered BOOND water, however in our effort to bring to you something
refreshingly new, we have introduced BOOND Natural Mountain Water - water brought to
you from the foothills of the mountains situated in Himachal Pradesh. Hence our product
range now comprises of two variants: BOOND with added minerals & BOOND Mountain
water
It is capturing its market in India as well as other continents. BOOND has been no 1 and is
capturing Indian market by providing best quality over a period of long time. None of the
water products in line are able to compete with BOOND and thus BOOND stand unique in
the market.
BOONDs commitment is to offer every Indian pure & clean drinking water. BISLER water
is put through multiple stages of purification, ozonised & finally packed for consumption. .
Rigorous R&D & stringent quality controls has made BOOND a market leader in the bottled
water

segment.

BOONDS endeavor to maintain strict quality controls each unit purchases performs & caps
only from approved vendors. BOOND produces their own bottles in-house; & have recently
procured the latest world class state of the art machineries that puts them at par with
International standards. This has not only helped them improve packaging quality but has
also reduced raw material wastage & doubled production capacity. You can be rest assured
that you are drinking safe & pure water when you consume BOOND. BOOND is free of
impurities & 100% safe. Enjoy the Sweet taste of Purity !

Manufacturing Process
BOOND manufacturers its own products and has its own manufacturing unit which includes
various machines, the whole manufacturing process is carried on by BOOND at its plant. The
whole manufacturing process is divided into different parts and it consists of different
activities like water purification treatment, blowing of the bottles, filling of the bottles,
packing of the bottles etc.
The manufacturing process of BOOND is carried on in different parts:
Storing Of Water
The water is taken from the boring well and then is stored in huge tanks, BOOND has 6 tanks
of 50,000 litres each, and water is first taken from the boring well and stored in these tanks.

Tanks in which water is Stored

6 STAGES OF WATER TREATMENT PLANT:

1.
2.
3.
4.
5.
6.

OZONATION
FILTERATION
CARBON FILTERATION
RESERVE OSMOSIS SYSTEM
MICRO FILTERATION
OZONE TREATMENT
1) OZONATION:
The process of ozonation ensures that the water remains free from bacteria, so that the
water can have a longer life and the machine used for this process of ozonation is
called ozonator.

2) FILTERATION:
The process of filteration removes suspended particles from the water by sand
filteration.

3) CARBON FILTERATION:
The stage of carbon filteration removes bad odour and colour from water and purifies
it.

4) REVERSE OSMOSIS SYSTEM:

This stage of reserve osmosis system controls all the dissolves solid particles and it
converts hard water into soft water.
5) MICRO FILTERATION:
Under this stage of micro filteration additional safety measures are taked to guarantee
purity of water. In this stage addition of mineral magnesium sulphate and potassium
bicarbonate is processed.
6) OZONE TREATMENT:
The ozone treatment increases the shelf life of water. To ensure mineral water is held safe free
from contamination, ultraviolet treatment and ozonisation process is carried out. Ozone is
unstable trivalent oxygen, a very powerful bactericide with no side effect, as it disintegrates
into oxygen within couple of hours. Sterilization effect of ozonised water continues even after
water is packaged, thereby ensuring safety of Mineral Water up to its final packing. To ensure
high quality of packing materials, components like caps and bottles are manufactured inhouse from resins of quality suppliers.
Good Manufacturing Practices are stringently followed at all times. Processing is religiously
monitored at every stage. Testing source water, processing parameters, microbial quality,
packaging material integrity and finally, shelf life studies, forms an integral part of quality
and safety assurance plan.

BOOND to have own distribution network

BOOND Drinks plans to put up its own distribution network across the country for the
BOOND mineral water brand.
The company will invest approximately Rs. 200 crores to procure 2,000 trucks and hire the
same number of sales people by end-2000 to extend the penetration of the brand.

Mr. Manish Jain , Chairman, Boond Drinks, said he expects an almost 400 per cent growth in
business when the number of trucks transporting BOOND mineral water doubles from the
current 1,000.
Predicting that he expects his company's turnover to touch Rs. 1,000 crores within the next
two years, he said the idea is to ensure that the BOOND brand reaches every nook and cranny
of the country. He said: ``The key to success in any business is the distribution and if you
have that in your control, you have won more than half the battle.''
Meanwhile, Mr. Chauhan, who puts Boond's 1999-2000 turnover at Rs. 350 crores (up from
Rs. 160 crores last fiscal), also plans to grow the market with the five-litre value pack,
targeted mainly at homes and institutions.
This bottle, priced at Rs. 25, essentially makes mineral water available to the consumer at Rs.
5 a litre. The one-litre bottle is available at Rs. 12, while the half-litre one is priced at Rs. 5.
Mr. Manishis now on the look-out for high-quality cups to make the water available in
smaller quantities.

Consumers who buy the five-litre value pack have to pay a Re. 1 deposit to the retailer, which
can be redeemed once the bottle is returned. The five-litre packs, launched last December in
Goa, are currently available in six cities, including Delhi, Bomba y and Bangalore, and sell
over 5,000 bottles a day, according to Mr. Chauhan.
``The company hopes to make the value packs available across India in the next couple of
months,'' he added.
He is, meanwhile, dispatching people to Japan this week to procure a recycling plant for the
PET bottles and said at least two such plants would be set up in Chennai and Delhi at the cost
of Rs. 5 crores each, by the end of the year.
Crushed and compacted bottles from other parts of the country will be transported to the two
plants, Mr. Manishsaid, adding that a better part of the compacted PET will go into the
manufacture of polyester yarn: ``I have already discussed _ with Relian ce and a couple of
other manufacturers _ the possibility of selling the polyester yarn thus manufactured.'' He
hopes to ensure that all used BOOND bottles come back to retailers by offering incentives.
The company plans to double its advertising budget from the Rs. 3 crores of last year to Rs. 6
crores next year, according to Mr. Chauhan, who said it will also promote the five-litre pack
with events and PoP displays.
With business growing exponentially, Mr. Manish is convinced that water is the business to
be in: ``BOOND is almost a generic name, the No. 2 in the business is way behind me, and I
hope to keep it that way.''

BLOWING PROCESS:
A small tube like plastic which is known as PRE-FORM is blown with the help of a
machine called SIDEL which has a temperature of about 80 to 90 degree Celsius, when this
PRE-FORM is put into the SIDEL machine it is blown up by its heat and turns out into a
bottle in a specific shape according to the mould plates available in the SIDEL machines
which gives the bottles a specific shape

PRE-FORM

BLOWING PART
The small tube made from plastic known as PRE-FORM; initially was manufactured but due
to hygienic reasons it was stopped and now it is got from outside and is out sourced. The
SIDEL machine is only used for blowing the empty bottles. Even the caps of the bottles are
outsourced as the manufacturing of the caps would involve a lot of time. So the SIDEL
machine only helps in the blowing of the bottle according to mould plates available in it
which give it a perfect shape and the PRE-FORM and the bottle caps are outsourced.

SIDEL

FILLING PART
Once the empty bottles are made and blown up the water is filled into it. The machine used
for filling the water in the blown bottle is called Dynathronic. The speed of this Dynathronic
machine is that in one minute 110 bottles can be filled.
There are 7 stages to the filling process; they are:
1) The bottle is sterilized with air pressure
2) Then the bottle is filled with water
3) The bottle is sealed with a cap
4) Labeling of the bottle takes place
5) All mandatory information such as marking the batch number, manufacturing date,
expiry date and MRP.
6) Inspection of the bottle such as checking, sealing, printing and filling.
7) Lastly the bottle is packed.

Marketing Mix
According to Philip kotler marketing mix is the mixture of controllable marketing
variables that the firm uses to pursue the sought level of sales in the targeted market
In simple words marketing mix is the combination of four basic elements / ingredients under
one head. The 4Ps ie Product, Place, Price, and Promotion.

PRODUCT
Types of products
BOOND values their customers & therefore have developed 8 unique pack sizes to suit the
need of every individual. They presently have 250ml cups, 250ml bottles, 500ml, 1L, 1.5L
and 2L which are the non-returnable packs & 5L, 20L which are the returnable packs.
Products Produced by BOOND

BOOND with added Minerals BOOND Mineral Water contains minerals such as magnesium
sulphate and potassium bicarbonate which are essential minerals for healthy living. They not
only maintain the pH balance of the body but also help in keeping you fit and energetic at all
times.

Himalayan Water The water that almost descends from the Gods:
The Himalayas, the abode of the Gods, where the earth meets the heavens and where in lies
nature's untouched bounty. White glaciers, snow-capped mountains and a plethora of exotic
herbs and other flora that have therapeutic properties. This is where you'll find a treasure
trove of hidden natural spring water that flows through natural purifying filters, mineral rich
rocks and herbs from which it absorbs many healing properties. We bottle this pristine spring

water directly at source, at the foothills of the Himalayas.

And now the customers, will get every drop of purity, right here, in this bottle. BOOND
Mountain Water is available in 500ml. bottles & 1 litre bottles.
Quality
In endeavor to maintain strict quality controls each unit purchases pre-forms & caps only
from approved vendors. BOOND produces its own bottles in-house; they have recently
procured the latest world class state of the art machineries that put them at par with
International standards. This has not only helped BOOND improve its packaging quality but
has also reduced raw material wastage & doubled production capacity. You can be rest
assured that you are drinking safe & pure water when you consume BOOND. BOOND is free
of impurities & 100% safe. Enjoy the Sweet taste of Purity!
Rigorous Research and Development and stringent quality controls have made BOOND
market leaders in the bottled water segment. BOOND has always been committed to offering
every Indian pure and clean drinking water. Hence BOOND water is put through multiple
stages of purification, Ozonisation and is hygienically packed for final consumption.
The machines which are used for the blowing and filling of the bottles are also cleaned twice
a month. All the tanks are also cleaned by the use of chemicals.
There is an online monitoring system where the batches of bottles are shown and once the
batch crosses a certain limit, an alarm is heard. Everyday almost one lakh bottles are passed
through the monitoring system. Moreover, in case there is a problem regarding the batch for
example, the cap seal of a particular bottle is not there or labeling is not done properly, the
system records that and immediately the production is halted. This is followed as per the
Bureau Standards and if any mistake occurs then the whole batch is discarded.
This shows that the whole batch is replaced and stopped which indicates high quality control.
Even practically every 2 days testing and sampling of the water and its bottles are done in the
market and in their Quality Department to check in case anything is wrong or not. In fact
there is a quality checker under the quality department for the final checking done of the
water before it is entered the market.

There is also a warehouse where the 20 litre bottles are kept for 48 hours to allow the ozone
to settle in it. This helps in prevention of any germs or harmful chemicals and also purifies
the water. The cost of quality undoubtedly is very efficiently taken care of in BOOND, there
are times when the cost of quality increases i.e. in the rainy seasons the cost increases
because the water is purified twice than the normal seasons as sometimes the water might be
dirty due to the rains, BOOND doesnt take any risks and does not compromise with their
quality.
Online Monitoring System

Design
Creativity:
BOOND has a separate creative department which promotes the different sizes of the bottles.
They have introduced new mountain water which is in hexagon shaped bottle and is a new up
gradation done by them. This helps in attracting new customers and creates a new sensation

in the market. Also 2 years ago a new soda bottle was introduced which was named as
BOOND Fizzy bringing a huge demand among customers.
Moreover, the creative department has an expansion scheme which was introduced in
October 2008 which was a compact and ideal gift for the customer. This includes a 20litre
bottle, 2 fridge bottles, 1.5 litre bottle and a 250 ml bottle with a fridge stand .This was
experimented for a month and which resulted in the lot of demand.
Value Engineering is redesigning the product already existing. The redesigning of the bottle
has definitely taken place in BOOND. Earlier they had a blue coloured bottle and then to
bring in a different change, BOOND decided to redesign the bottle to green colour.
Labeling
Labeling plays a very important role BOOND takes good care about the labeling as it tries to
create and come up with an exciting and attractive label as it will attract the customers; also
labeling plays an important role as it gives a lot of information about the product ; like what
are the contents of a bottle how is it made what does it consist etc. Also labeling gives a lot
of information about the product ie the price of the product; manufacturing date; expiry date
etc.
PRICE
Price plays as very important role as it is the only P which helps in getting revenue:

Firstly one can explain the factors which affect the pricing

decision ie.
- Price is directly related to
1. Demand
2. Competition
3. Break-even Point.

Secondly, if there is a novel product or almost no competition, one can

Go for higher price in the beginning, make good profits to face

Competition and innovations at a latter date.

- However if you are entering a competitive market your entry price

should be low to ensure big volumes to earn reasonable profits.
In the beginning BOOND had no competition, so the price of BOOND
was high, gradually the promoters dropped the price.
- Buy Huge quantity at cheap rate, after confirming demand and sell at
cheap price, make them addictive, then gradually increase price)
BRAND

PACKAGINGS

PRICE (in Rs.)

Per bottle

BOOND
20 litre
5 litre
1.5 litre
1 litre
500 ml
330ml
250 ml cup

70
50
22
18
10
8
5

Customer Delight
BOOND is in the business to serve the customer. It deserves the best quality and presentation
at a worth of the price. They have world class quality, at the lowest production & distribution
cost. This makes them unbeatable leaders, and helps them in having satisfied loyal customers.
BOOND values its customers & therefore have developed 8 unique pack sizes to suit the
need of every individual. At present they provide 250ml cups, 250ml bottles, 500ml, 1L,
1.5L, 2L which are the non-returnable packs & 5L, 20L which are the returnable packs. For
the customers BOOND has come up with a new scheme called the REDUMTION scheme
designed specially for the customers. In the Redumtion scheme BOOND provides for Rs 300
a 20lt BOOND bottle, 2 fridge bottles, a 1.5l bottle, a 250ml bottle and a fridge stand.
PLACE
BOOND has a specific distribution channel which they follow:
Distribution Channel

From the manufacturing plant the bottles will come directly to the stockiest. Taking out the
C&F agent from the distribution channel, so as to increase the margin to other elements in
the chain.
The whole MUMBAI area is been divided into 4 zones: SOUTH , WEST , CENTRAL and
NORTH.
Promotion
Positioning

Playing Safe

Target audience

Health and hygiene conscious people

Personality

Guardian, Authoritative, Reliable

Punch Line

Play Safe

To keep your company humming with profitable work, its vital to advertise your services.
Your company is going to require the maximum exposure you can afford. This constant

exposure will alert potential customers who you are and where you are when they need a
sign. By positioning YOUR name at their fingertips and even literally displaying it in front of
their eyes, theyll call YOU for identification products and services.
There are all types of promotion. They range from direct mail, word of mouth, advertising in
newspapers and telephone directories to radio and T.V. spots, cold calls and telemarketing.
Whatever the medium, consider the cost. Advertising will usually is an expense that remains
in your budget.
BOOND follows different promotion strategies and uses different ways to promote their
product like
Advertisements
Advertisements are paid and and electronic way of communication ie to convey the message
to the customers, BOOND comes up with different and attractive advertisements on
televisions and cinema halls to attract customers today advertisements really attract the
customers and by looking at the attractive advertisement people buy the product more.
Direct Mail
Direct mail is an avenue of promotion that targets a definite audience with a specific letter,
brochure, or offer. Different potential customer groups have various needs that can be bullseyed with a distinct service or product. For instance, we can draft a personalized letter to
hotels, gyms, canteens and a different message to offices. In hotels where consumption of
water is more as compare to the office so we can give them additional discount and better
services compare to the office. In the case of the office where we there is less consumption of
water and less availability of space we can promote our 5-litre jar, 10 litres jar and 20 litre
jars.
The brochure or letter should contain information about our product, which we want to target
and which is different and better than other product. In case of bottled water we can
differentiate our product than other through the quality of water, price, packaging, service that
is very important.

In a country like India where religion and festival play an important role in ones life, we can
send post cards or greeting cards to not only our own customer but also to the prospective
customer.
Building and Vehicle Identification
Our OWN signs are an advertisement in them. For example a van or a tempo which is green
in color, than all know that it is BOOND cargo services van or tempo, same in the case of
coca- cola it is red color and blue in case of Pepsi.
Price packs
A banded pack is two related products banded together for example: toothpaste and
toothbrush. In the case of summer where in India the climate is very humid and hot, and
consumption of water is also high, so in that case with the purchase of every one 1 litre bottle
a free cold tissue paper can be provided.
Tie-in-promotions
In this case where two or more brands or companies team up to increase pulling power.
Nowadays there is a craze of Sikkim super lotto so with a purchase of every 20 litre jar the
ticket will be available at RS.5.
But today frankly BOOND is recognized by the punch line PURE N SAFE it has
established itself so well that there is no need of any promotion as whenever a person
goes to buy a bottle of mineral water he says GIVE ME A BOOND and does not say
give me a bottle or mineral water
SEGMENTATION
The mineral water market is segmented according to the type of consumers:
Foreign Tourists
Foreign tourists have been the main consumers of the mineral water as they face a lot of
digestion problems due to different food habits.
Domestic Tourists
Domestic tourists have switched to mineral water mainly because of safety and hygiene
factors.
Fashion Conscious
Like soft drinks, drinking mineral water is also considered fashionable by some people.

The mineral water consumer is mainly in the age group of 20-35 years and is an educated
middle class person. This is also the segment of fruit drinks, which have usually been
positioned as fun and health drink for young adults. The mineral water market is also
segmented along pack sizes:
One litre bottle
This is meant to spell safety and security for consumers. It is positioned on a prestige
platform for the achiever segment - who like to make a fashion statement by drinking mineral
water. This segment gets the maximum sales.
500ml bottle
This size has been introduced in the market to target the individual and local travelers.
PET bottles
The size of the PET bottles varies from 10 to 20 litres. These are mainly for institutional sales
(Wedding parties, Hotels, Corporate, etc.)

CONSUMER HABITS AND PRACTICES

Consumers are growing more health conscious and are more careful of their drinking
habits.

Brand loyalty is very low as all the products taste the same so they can buy just any
product which is on the shelf, same as that of soft drinks and fruit beverages.

Availability in the chilled form and brand awareness plays a crucial role in purchase
decisions.

While there is no aversion to consumption of mineral water by any age group, this
product is mainly consumed by the people in the age group of 20-35 years who have less
attraction of soft drinks or other synthetic drinks whereas youngsters look in for soft
drinks and fruit beverages to quench their thirst.

Visibility is another factor that should be taken care of by the companies as consumers are
not very brand loyal and consume whatever is in front of them.

Consumers often drink bottled water as an alternative to tap water. They think it tastes better
(no chlorine taste) and perceive it to be safer and of better quality. They also look for
security: food scandals in industrialized countries and water-borne diseases in developing
countries greatly influence consumers attitudes. Consumers buy bottled water to feel well
and to lose weight. Bottled water is perceived as a healthy alternative to other beverages.
Thus, for the aerated beverages bottled water offers a potential threat.
Moreover, increasing urbanization, causing declines in tap-water quality, can also explain the
popularity. Because it is untreated, natural mineral water is perceived as natural by city
dwellers looking for genuine products. Higher living standards and auto usage enable people
to easily bring home more and heavier bottles of water. At the office, a bottle of water is now
a common sight on the desk, next to the computer and the telephone. Drinking bottled water
is a sign of a rise in the social scale. Above all, bottled water has become a huge marketing
success.
STRENGTH

1. QUALITY STANDARD:-

Every bottle of BOOND is put through a rigorous Multi stage purification

processes which includes micron filtration and ozonisation.
It acquires 6 stages of purification processes which ensure quality water which is pure and
safe for drinking purpose. Good manufacturing are the strength all the time processing in
religiously monitored at every stage.

2. TRUST FOR BRAND:More than 50 lakhs people trust the BOOND. They buy only BOOND water
because it has became generic name for mineral water. For example: - When people go to buy
the mineral water many of them ask for BOOND, even though they get other brand.

3. LARGE RANGE OF PRODUCTS:BOOND offers a large range of products which attracts consumer of all
categories. For example: - 1 litre or 500 ml pack is useful for individual buyers, 12 litres or
20 litres is useful for organization. Therefore it attracts large number of customer.
4. MARKETING:BOOND is promoted by an aggressive print & TV. TV is backed by a
Hoarding & point of sale material. Every interface with customer is used as an
opportunity to reinforce. For example: - All vehicles used for supply have been painted in
light green, bears the BOOND logo & sport catchy baseline likes drink and drive.
5. DISTRIBUTION SYSTEM.
With little belief in the distributor system, the company leverage its large fleet of
truck to supply bottled water directly to retailers through a system called Route Selling
where the driver of truck is trained to be a service person. This ensures that water supplied is
fresh and bottles are in good shape. BOOND has more than 80,000 outlets in the country.
6. EXPERIENCE OF MR.CHAUHAN (M.D OF BOOND)

From the vast experience of marketing Gold Spot and Thums Up, Mr.
Manishknows that distribution plays a crucial role in the successful marketing of bottled
drinks. He knows that making fresh water available within a particular period of time is
crucial for its success. He is pursuing a multi- pack and multi- price strategy.
7. BULK SEGMENT IS USEFUL FOR HOUSEHOLDS ALSO:Households in certain parts of the country spend a huge amount of money on fuel
in order to purify the water. They are supposed to buy the impure water and then they have to
spend money to purify it.
For instance the water scarce south people spend large some of money to buy water and still
more to purify it. The 12 litre product is hit in various cities of south.
8. GROWING POPULARITY:The popularity of BOOND is increasing rapidly day by day. People in
the market when it comes to mineral water a person goes to any shop and asks for BOOND as
his/her first preference. BOOND is seeing a growth of almost 50% per year. With the small
pack being popular among individuals user its bulk pack is also generating the huge demand
which is capturing the market for BOOND. Today 60-70 % of total income of BOOND
comes from its bulk segment and the company is planning to increase it up to 80%.
9. THE BREAK AWAY SEAL:Keeping in mind the consumers need to recognize a genuine product that cannot
be tempered with. The unique cap has been patented and cannot be duplicated. This technical
strength ensures that the consumer will only get a high safe product when they will drink
BOOND.

MISSION STATEMENT
To provide the highest quality product, keeping in mind all aspect
including freshness purity and safety and making it easy available to the consumer at
very affordable price.

WEAKNESS
1.METHOD ADOPTED FOR DISTRIBUTION:THE ROUTESELLING policy adopted by BOOND for distribution is more
expensive than more commonly followed method of appointing distributors in different
towns. This reduces the profit of

company. The dealer margin is reduced due to this

.therefore not many dealer keeps BOOND in many areas. Indirectly this is reducing the
coverage of BOOND.

2.

REUSE

OF

BOTTLE

BY

LOCAL

SELLERS

AND

ILLEGAL

MANUFACTURERS:Market research conducted by BOOND revealed that the other overriding

concern for this set of buyers is the tampering of seal and the reuse of bottles. Many have
witnessed used bottles being refilled at railway stations. This deteriorates the brand image
of BOOND.
For example: - local sellers fill the bottle of BOOND with impure water and the bottles
are purchased by illiterate customers as BOOND water but they buy water of low quality.
In this way brand of BOOND gets affected.
3. FAULTS IN PRODUCTION:Tests conducted by various authorities shows that it contains pesticides. In
2002 the 2cm long insect was found in the bottle of BOOND. This has affected its sales
and reputation. The license of its two factories one at Noida and other at Bangalore has
been cancelled because of fault in production.

4. PRESSURE BY GOVERNMENT AUTHORITY:After insect was found in the bottles, FDA (Food & Drug Adulteration) has
cancelled the production of BOOND. Afterwards it was allowed to resume it but in this
period its customer were moved towards other products. It is constantly under check by
various authorities.

5. NOT MEETING THE DEMAND OF THE CUSTOMER:In certain parts of south in our country big bottles of BOOND are in huge
demand but the company is unable to meet the demand of the consumers. This is affecting
the demand for the product. So People are forced to use other brands of mineral water.
OPPORTUNITY
1. FAST GROWING FIELD:The best beverage for India in the new millennium seems to be water. In recent
years, the bottled drinking water market has been witnessing high decibel level of
activity, with a host of new entrants. The bottled water market which worth Rs. 1000
crore is expected to be Rs. 5000 crore by 2010. This will increase a lot of scope for
bottled water market.
2. BOOND CAN UTILISE ITS DISTRIBUTION CHAIN:With BOOND becoming a generic name for bottled drinking water. If
company can manage the distribution chain of the product to make it available where the
consumer needs it the most, the company may well succeed in his gamble with water. For
this the company can connect it with dealers and other distributors who will market the
products for them all around the world.
3. EXPANSION IN EUROPE:The launch of BOOND in the European market on 4 th September, 2003 has
created a lot of scope for BOOND in the field. This will also compensate the deterioration
of image; BOOND has suffered after insect was found in the bottle. It will silence the
critics and it will also increase the faith of the customer for the brand. It will create an
international brand image and the quality will increase.

4. LAUNCH OF PREMIUM PACK:The company also has its premium product range. This is prepared keeping
5-star hotels and other premium customer. This pack will be sold at Rs. 20 per litre. This

will give a tough competition to the EVIAN, the biggest player in the premium water
range which sells its 1 litre water at a hefty of Rs.85 per litre.
5. CHANGE OF IMAGE:The company has changed the colour of the product. It has changed from
blue to green. By changing the colour, the company has provided a new product to the
consumers; they will be getting a new and a refreshing product.
6.INCREASE IN PRODUCTION:BOOND is eyeing the Market and is in the process of increasing the
production by setting 4 new plants adding to its 23plants. This will increase the
production capacity of the company.
THREAT
1. ENTERING OF NEW PLAYERS:To get some share in the market many new players are entering in the
market. Among them major names are Godrej, which is launching its product AQUA-PURE
and Tata-Tea is looking forward to but Himalayan, this will increase the competition. Also
Britannia which is distributing EVIAN is planning to launch its own brand. There are also
new entrants ATCO with BRILLIANT water, DS FOODS with CATCH are also coming.
Even Hindustan lever is planning to enter into the market. This is give a tough competition to
the current water brands including BOOND.
2. WATER FILTER MANUFACTURERS:BOOND is not only getting competition from mineral water maker but
is also facing a tough competition from various water filter manufacturers such as Eureka
Forbes (Aqua guard). They have been marketing there purifiers in the market which has
decreased the sales of bottled water supply to homely customers.

3. ILLEGAL MANUFACTURERS:Company is facing a tough competition from illegal manufacturers in

the rural areas. The illegal manufacturers provide water at a very cheaper rate then the
branded manufacturers. There are 1000s of illegal manufacturers which are providing the

water at a very cheaper rate. This is a serious problem for branded manufacturers. This
companies also use the fake name of branded bottled water i.e. BOOND and supply their
products in the market.
4. STRONG DISTRIBUTION CHANNEL OF THE OTHER MANUFACTURERS:Analysts feel that BOONDS break away seal will not at all be
effective the company having strong distribution channel will only survive. This rings the
warning bell for BOOND because among other players Kinley and Aquafina are having a
strong distribution network of Coke and Pepsi. Nestle will be banking on its chocolate
distribution network. Even though the BOOND has a strong networks but its concentration
on bulk segment can lead to improper network.
For example: - A chemist who is selling the 1 litre pack may not sell the 20 litre pack. This
could disturb the network.
5. NEW GOVERNMENT POLICY:For preparing 1 litre of mineral water 3 litre of ground water is
required. Government was not charging tax on the extraction of the ground water. Now by
introducing the new policy government is going to impose tax on the extraction of the
ground water, this will increase the production cost because of which the companies will be
forced to increase the price which all consumers of all categories can not afford. The
companies can compensate the high production cost by reducing their marketing expenses
but this will keep the consumer unaware about the product. This is also effect the quality of
the bottled water.
The Colour of Money
Chauhan claims the changes are already bearing results -- apparently, sales are up 50 per cent
on a month-on-month basis. Equally importantly, the packaging changes have helped Boond
BOOND shave costs.
Earlier, fixing labels on differently shaped bottles -- especially the ones that are tapered at the
neck -- was difficult and time consuming. Labeling round bottles has increased the speed 10
times.
Eight months ago, the company also launched the prototype of a rounded bottle with slightly
wider necks ("Alaska neck", in industry terminology). The change in design meant using 2-3

grams less of plastic in every bottle, which added up to an annual saving of Rs 3 crore (Rs 30
million).
Even the new label helped the company cut costs -- by up to Rs 6 crore (Rs 60 million) a
year. The earlier shrink label has been replaced with one made of superior biaxially-oriented
polypropylene film that can not only take more colours, but costs half of shrink labels.
Now Chauhan is hoping the new bottle design will help improve the output as well. "Earlier,
the quality of the bottles wasn't consistent - some were thicker than others, some were bent
around the bottom and so on. All this hampered our efforts to increase productivity," he says.
With a uniform design for all product sizes, the company aims to double bottling capacity in
its 23 plants, to 200 million cases a day, by the first half of 2007.

CUSTOMER PREFERENCES FOR BOTTLE

SIZE OF BOTTLES

CONSUMER PREFERENCES

0.5 ltr

60%

1 ltr

20%

5 ltr

5%

20 ltr

15%

CUSTOMERS PREFERENCES REGARDING

PRICE WORTH OF MINERAL WATER

Respondents view

Yes

No

% of Respondents

42%

58%

The observation shows that most of the people are not happy paying the price, the
companies are charging for the product. They feel that the price should be a little lower.

36

EFFECT OF ADVERTISING ON PURCHASE

46% agree to the fact with 10%, who strongly agree while 25% of the respondents
disagree to the fact while 14% strongly disagree, while 5% consumers were indifferent
towards it.respondents

37

GROWING HEALTH CONSCIOUSNESS

AMONG INDIANS

Yes

No

73%

27%

The observation shows that most of the population in Delhi & its NCR now a days is
getting Health Conscious. The reason being the knowledge of the fact that the normal
water which we get is not always very hygienic and may cause many diseases.

38

RETAILER RELATED OBSERVATIONS AND FINDINGS

TYPES OF BRANDS RETAILERS KEEP

Advertised

Non-Advertised

Both

35%

5%

60%

According to survey, 35% of retailer go in for advertised products and non-advertised

products do not have any weight Around 60% retailer believe in the combination of
both (advertised and non-advertised version). The survey was based on retailers.

39

SIZE OF BOTTLE SELLING MORE

Size of bottle

0.5 Itr

% of respondents

60%

1 ltr

20%

5 Itr

20 Itr

5%

15%

40

Influences in deciding to buy a particular Brand

Media influence in deciding the Brand

41

others
television

retail outlet
newspaper magazine

The Survey was done in areas of Sagar like Church Gate, Colaba and so on. Many college
going students were asked about their brand preferences and also many people specially
office going people who carry mineral water. Also survey of different shops were done as
different shops sell different brands of water, also survey of different movie theaters were
done as which brand do they sell and also hotels, as different hotels sell different brands.
The survey was done in many parts:
1. Mineral water is famous among youngsters because they buy a lot of packaged water
as its hygienic and as they say it looks cool. Today specially youngsters as brand freak
and want a trendy and a stylish type of bottle and also cool and attractive
advertisements influence them a lot.

CONCLUSION

42

The important increase in India can be easily explained through the growth of the population
and problems of water quality and water supplies. Until 1992, the demand for bottled water in
India was mostly limited to foreign tourists, corporate meetings, conferences, etc. The
introduction of bulk packaging extended the market to new and numerous consumers.
Bottled water is a particularly competitive market, hence companies need to develop diverse
marketing strategies, such as accessing new markets by owning or developing partnership
with regional brands, developing new products (such as flavored water) or by-products (such
as cosmetics) and developing services (home and office delivery of water)
Today more and more companies are coming up in the package drinking water market as
there is a lot of scope in bottle water market as seeing the increase in Indian population.
Today the people of India are very hygienic and only prefer bottle water which increases in
the scope of bottle water market.
By looking at the increasing demand of bottle water companies have to see that they use
modern marketing strategies and also come up with trendy bottles and satisfy the wants of the
consumer.

Questionnaire.
43

Name: _____________________________
Area of Residence: __________________
Occupation: _______________________
Age: _____________________________
1. Which Brands of Mineral water are you aware of?
________________
________________
________________
________________
________________
2. Which Brand/s do you prefer?
________________
3. Why do you prefer this particular Brand?
________________________________________________________
4. What influences your decision to buy a particular Brand?
Brand Image
Advertising
Price
Availability
Size / Package
5. From which media did you come to know about the various brands?
Television
Magazines
Newspapers
Retail outlets
Others
6. Are you aware of the brand BOOND?
Yes
No
7. Have seen any advertisements of BOOND?
Yes
No
8. If yes, where?
9. How do you rate the following brands:
G for Good ----------------A for Average

---------------- P for Poor

Bibliography
Apart from this I visited sites like
44

www.BOOND.com
www.managementcases.com
www.icri.com

45