Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
On
Aava Packaged Natural Mineral Water
Sheelpe Enterprises:
2, China Garden, Netaji Marg,
Mithakhali Circle, Ahmedabad-380006.
Phone : +91-79-26401000/2286027
Fax : +91-79-26405700
Email : info@aavawater.com
Submitted To NRIBA
Prof. Belur Baxi
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CERTIFICATE
This is to certify that the report on the visit to Aava Natural Mineral Water (A Unit
________________
Director
Date :
_________________
Prof. in charge
/ / 2013
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Acknowledgement
I am highly thankful to the management and staff of Aava Natural Mineral
Water. I am especially thankful to Dr. BELUR BAXI for helping me in my Practical
Studies . In addition to allowing me to visit the company and study the Organization, they
provided me with many details which were very useful in preparing this report.
I take this opportunity to thank our Director , Dr. AVANI DESAI , Professor-inCharge Dr. BELUR BAXI for their encouragement and the office staff for providing us all
the facilities for making our visit more learning oriented.
DATE
(Signature)
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INDEX
Sr. No
Ch. 1
1.1
1.2
1.3
1.4
1.5
1.6
1.7
1.8
1.9
1.10
1.11
1.12
Ch 2
2.1
2.2
2.3
2.4
2.5
2.6
2.7
2.8
2.9
2.10
Topic
Pg no
Title Page
Certificate
Acknowledgement
I
II
III
Introduction
Pg 5
Company Profile
Pg 6 13
6
6
7
7
8
9
10
10
11
11
12 - 13
13
Pg 14 - 32
14
14 22
23
23 - 24
24 - 25
25-26
26
27
28
28 29
Ch 3
Findings
Pg 30
Ch 4
Suggestions
Pg 31
Conclusion
Pg 32
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INTRODUCTION
As a part of the course curriculum , the second year (Semester 4) BBA student
are required to prepare the project report. The objective behind preparing this project report is
to relate the management subject taught in the class room to their practical application.
The preparation of this project report is based on finding notes during the
industrial visit , information received from return and published documents and refining by
company executives. The scope of the project report is limited to an analysis of the company
in light of its different departments and lying emphasis on any of the department. In spite of
my best efforts, there may be an error omission and commission , which may please be
excused.
Our main purpose for the visit was learn about the production of Natural Mineral
Drinking water by Aava as it is very unique product as compared to the other packaged
drinking water. Moreover we want to know the Marketing strategies of Aava and various
other tiny bit details about the organization. Moreover we want to understand complete
differentiation between Aavas Natural Drinking Water and other Packaged drinking water.
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Sheelpe Enterprises:
2, China Garden, Netaji Marg,
Mithakhali Circle, Ahmedabad-380006.
Phone : +91-79-26401000/2286027
Fax : +91-79-26405700
Email : info@aavawater.com
Plant Address :
Aava offers Packaged Natural Drinking Water across the country in different sizes
and packaging and mainly deals in B2B marketing with some premium companies in India.
The foremost Vision stated by the Aava is to become on of the most premium
bottled water in India. The brand Aava is to be recognized as most reliable and standard
name in bottled water industry.
The concept of Natural Mineral Water is quite different and mostly people in
India are unaware of it. The packaged drinking water is nothing but processed water sold
in bottle and which does not even resemble the name Mineral Water, However Aava
wants to make people aware of the concept of using Natural Mineral Water rather than
chemically purified Packaged Waters
Vision:
To provide superior water to our consumer
Mission:
To provide the healthy water in order to facilitate people
Slogan:
Water, Water, Everywhere, Not a Drop to Drink (As per Brochure)
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Turnover:
Aavas annual turnover is Rs 15 crores recently.
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awards held at a glittering function under the stained-glass multi-domed ceiling of the
heritage Grand Hotel in Mexico City.
A per the Times of India, the $18 billion DANONE is in parleys with the promoters of
Aava to pick up equity stake and setup a joint venture project in India. However no
lights were shed from either party.
The only licensed mineral water in West, South and Central India.
Aava cover Story describing tips on labeling by Journal of Asia Middle East Bottled
Water Association.
Article in Economic Times Bombay (August 27, 2007) describing Aava as Rising
Water Label also specifies that Aava Natural Water has made a mark and international
leaders are interested in it.
Article in DNA Money (July 24, 2007) about expansion of Aava for distribution in Goa
and South India along with increasing sales to different airlines from six airport bases
across the India.
More often than not, these blue bottles contain water that is processed through
various chemical and other purification processes to make it fit for drinking. Popularly, this
water is known as Packaged Drinking Water.
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On the other hand, Aava Natural Mineral Water is obtained directly from
protected natural sources, thus ensuring that the water is naturally pure. It therefore, need not
to be put through all the chemical and other purification process that Packaged Drinking
Water goes through.
Thus, Aava has brought a Green Revolution to the water world by being 100%
natural.
Let we see the deference :
1.12
Certifications :
I.S.O.14001 : Environmental
Management System Standard. view
certificate
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Travelers
Local Movers
Commercial users, has been made.
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Aava gold is premium bottle packaging which is only designed for the
requirement of specific customer who wants to differentiate from the bottle available in the
market. Moreover the price of the product is remarkably higher.
6) Others :
Aava also distributes two types of dispenser, Normal Dispenser and Hot / Cold
water dispenser. However the company does not manufacture it themselves but buys in bulk
and sells after labeling.
2.2.3.1 Branding :
Branding means giving name, design, logo etc In case of Aava while determining
brand name following aspects have played very important role.
-
Name
Colour
Punch Line
Position or Unique Selling Preposition
Name (Brand Name Philosophy) :The word Aava is similar to the word Aqua which means water. There selection of
the name has been made with specific intention to distinguish from other products.
Besides the name is easy to remember and relates to the product.
Colour :-
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Much more emphasis has been given on sky blue colour and green colour with
intention to create image of natural element included in the product, except for the
case of Aava Gold which describes premium product.
Punch Line :Here the punch line is supporting business philosophy as well as line is
distinguishing Aava from competitors product. The punch line used is Natural
Mineral Water. The word natural is used because the water is available from hill
areas of worlds oldest mountain range, The Aaravalis
2.2.3.3 Packaging :
Packaging is considered as most important function of product management.
Most important aspect Convenience in Use has been emphasized in packing of drinking
water. Packing has been made and developed on the basis of usage of product.
Packaging Differentiation
Product packaging and presentation is one of the main dynamics, which control
the flow of target customers towards the product. Packaging should be in line with the
industrial norms. Packaging may also vary with the understanding of the target market. It
is suggested that the bottles of 0.5 liter and 1.5 liter capacity should be used. Bottles should
be clear. The bottle should give a reflection of light sky blue color, which is considered a
natural symbol of the water. This color also adds a tinge of purity. The water should give a
shiny and a glossy reflection. The opening of the bottle should be large enough to
accommodate outflow and in flow of water. The bottles should be placed in special racks and
strand meant for bottled water at retail outlets, which will be having a unique color and a
unique design. The color and the design will create a positive perception for the new brand.
The wrapper of the bottles provides following information.
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If Innovation was to get a distinct and newer description, the credit would must go
to Aava Natural Mineral Water. It is the first and the only Indian Finalist and Winner of the
Silver Award at the Bottled Water World Awards, held recently in Mexico. On the Aavas
bottle there is information regarding the companys description, Manufacturing Date, Size,
ISO 14001-2004 mark, License Number, Price, etc.
From past few years Aava has not gone for launching of any New Product in the
market. They have just added a Product Variant by adding Aava Gold to their products, which
is nothing but premium packaging for the Bottle which is supplied to specific limited Hotels.
Besides this they also started the square shaped 300 ml bottles on the requirement of certain
airlines company.
During the communication, it was stated that Aava will be increasing their
product range by launching new product variants as per the required area to target different
markets across the country.
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At present the Aava water is between introductory and growth stage due to its late
entry in the Bottled water market, Aava has not established completely in the market and let
as have a look on stages of Bottled Drinking Water in India
Introduction Stage :
Here 1990 is select as a base year and from 1990 sales of Bottled water increase
year by year but not that much level up to 2004-05 so this stage covers under introduction
stage of bottled water industry. And after increase awareness among people and also know
about side effect of non purified water people diverse from tap water to bottled water and this
change increase sales of bottled water in market. In this stage firm focus on branding and
patent for maintain right to produce.
Growth Stage :
After 2005-06 bottled water sales increase in market and it shows growing stage
of the industry, because people are now use bottle water for status and for health safety. Now
in 2008 bottled water industry growing at a rate of 38% so it sales increase faster as
compared to past year so we can say that industry came under growth stage. Maintain
existing features and also add new things in product. Here broader audience available for
industry product.
The above table and details shows that at present the Bottled Water Industry is on
the growth stage and it is not too late for Aava to perform business as the demand for Bottled
water is been increasing notably. However there is heavy attack of competitors which
compels Aava to counterfeit but company is not giving any reaction as their product is
different from others.
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Source of Water
(Aaravali and
underground water
sources)Resources
Labeling Material
Packaging / Bottle
Material
Retailers
Final Consumers
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The first step in production process is to acquire necessary raw material for the
product. The source from where the water is obtained, packaging materials, labeling
materials, etc are to be specified. The primary sources of water are Taranga Hills and
the underground reservoirs.
The raw water obtained from natural sources might contain some impurities like sand
and dust, therefore the water goes under the sand filtration in the plant, where it
becomes edible.
The Bottles are manufactured in plant from a plastic vessel and are shaped according
to design, later bottles are washed to remove any impurities during the manufacturing
process.
The Bottles are further passed through the filling machine which is fully automated
and possess capacity of filling around 200 bottles per minute. No Human involvement
takes places until the bottle is filled and cap is attached.
The bottles are then labeled by manually putting labels on them which passes through
the machine providing enough heat to fix label completely around the bottle.
After completion of production of bottles, they are packed in a plastic sheet which is
surrounded and packed as a box, which is a better, affordable and superior method
than corrugated boxes.
Certain samples are taken from the production to ensure various chemicals to test the
reliability of drinking water and are kept for 48 hours before dispatching the lot.
The bottles are dispatched from the factory after the process of testing is completed
and further sent for the distribution, which is performed by Aava itself without
following any distribution channel.
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There are 77 different chemical, microbiological and other tests. Aava does not go
through certain processes that other Packaged drinking water like
Activated Carbon Filtration, Softening and RO purification. The new Osmosis E-Series
Ozone Generators feature a durable flat plate ceramic cell construction that provides stable
ozone output at higher concentrations (from 6 to 10 per cent by weight), while efficiently
producing up to 3 ppd (57g/hr) of ozone.
The Segmentation is process of creating different target groups in the market for
specific product. However Aava has not gone for any complex segmentation but they have
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created two groups which are organizations and the general public. The main focus of Aava is
to deal with different organizations and cover B2B market. The other less known segments
can be:
-
2.4 Pricing :
Changing the product to reflect the product's life cycle is only part of the essence
of a well balanced marketing mix, and so PRICE enters the second important consideration of
the marketing mix. When setting a price on a range for your products, you need to ensure that
you can recoup any overheads, compete with rival companies and charge a price
your customers are willing to pay. To do this you need to fine tune your pricing policy and
you could achieve this in a number of ways.
Primary distribution :
Direct to institutes like IIM, Abon India, For season ware, multiplex etc.
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Secondary Distribution :
Company sell direct to retailers and retailers to customers.
Like Pan houses, Bakeries, General stores etc.
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2.7 Advertisement :
Advertising is one of the component of integrated marketing which is playing
very important role in creating awareness about the product. Aava is convenient product in
category of packaged drinking water across all the competitors in the market. However
company is lacking in aggressive advertisement. Recently there is no marketing
communication through any media from Aava
The company attempts to capture B2B market to a greater extent as compared
to other markets. Hence company has not gone for any type of advertisement. Company
believes in word to word mouth publicity.
The overall packaged bottled water in India is estimated to touch the Rs 10,000
crores mark in the 2012-13 fiscal, growing at a compound annual growth rate (CAGR) of
19%, says a new report by Ikon Marketing Consultants. Presently, this market is estimated at
Rs 8,000 crores, and could touch Rs15,000 crores by 2015, the report adds. While Bisleri
continues as the top brand with a 36% share among national players, Coca-Cola's Kinley
follows with 25% share, followed by Aquafina at 15%. Other smaller brands include Parle
Agro's Bailey, Kingfisher and McDowells No. 1, according to the report. The global bottled
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water market, which saw an increase of 40-45% over the past five years, is currently valued
at close to US$ 85-90 billion, the report adds.
The domestic market is split between three sets of players -- national brands
with a pan India presence worth around Rs 4,000 crores, local brands manufactured by
registered plants but restricted to regions estimated to have a combined turnover of Rs 2,400
crores and unorganized local brands estimated at Rs 1,600 crores. The report estimates that
there are over 2,500 brands in this category, of which over three-fourths are local. The nontraditional category, or bulk packs, (with over 5 liter capacity) is growing rapidly, and has a
current share of over 40% share. "The rising trend of bulk water consumption in homes and
institutional segments will pave the way for bulk water packs to acquire half of the total
bottled water market within next four-five years," the report adds. According to a nationallevel study, making bottled water is today a cottage industry in the country. Leave alone the
metros, where a bottled-water manufacturer can be found even in a one-room shop, in every
medium and small city and even rural areas there are bottled water manufacturers, While
India ranks in the top 10 largest bottled water consumers in the world, its per capita per
annum consumption of bottled water is estimated to be five liters which is comparatively
lower than the global average of 24 liters. Today it is one of India's fastest growing industrial
sectors. Between 1999 and 2004, the Indian bottled water market grew at a compound annual
growth rate (CAGR) of 25 per cent - the highest in the world. The total annual bottled water
consumption in India had tripled to 5 billion liters in 2004 from 1.5 billion liters in
1999. Global consumption of bottled water was nearing 200 billion liters in 2006
Bottled water is sold in a variety of packages: pouches and glasses, 330 ml
bottles, 500 ml bottles, one and 5-litre bottles and even 20-50-litre bulk water packs. The
bottled water business is divided broadly into three segments in terms of cost: premium
natural mineral water, natural mineral water and packaged drinking water. Premium natural
mineral water includes such imported brands as Evian, San Pellegrino and Perrier
which are priced between Rs 90 and Rs110 a liter. Natural mineral water brands like
Himalayan and the indigenous Catch brand owned by DS Foods Ltd are priced around Rs 20
a liter. Packaged drinking water is the biggest segment and includes brands such as Parle
Bisleri, Coca-Cola's Kinley and PepsiCo's Aquafina which are priced in the range of Rs15-18
a liter.
STRENGTH
Adopting Concept of Natural Mineral Water
Unique Packaging and Design
Premium Brand image
Less Competition (in terms of Natural Mineral Water)
WEAKNESS
Lack of promotion, advertising,
Lack Of Distribution Channel
Lack of proper positioning
No Formal Organization Structure
Poor Customer Relationship Management
OPPORTUNITY
Untapped Market
Change in lifestyle
Increasing Population Growth and literacy rate
Demographical Transformation of India
Awareness on health
Commercialization
Tourism and tourist places
Extraordinary application of product
THREATS
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Government interferences
Pollution norms
Substitutes
Regional Brands
External Factor Evaluation
Source :
Chapter 3 Findings
Natural mineral water is relatively a new concept, hence it requires higher adoption
time as compared to other packaged drinking water products.
Aava product is targeted to upper class or higher class hence pricing is also made
with reference to value positioning.
Aava obtains raw material or water from underground natural water resources which
is created natural and arrived from Aaravali
Aava products is offered in various size but most preferred size is 200 ml bottle
which is supply to various premium customer like G.I.C and M.I.C, sports club.
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company has been very good and reductively cost by packaging whose cost is lower
then corrugated boxes
Company manufactures bottles of all sizes inside the factory hence there is no
transportation cost for bottles. Company followed high standard of quality and
obtained award from different organization
Company is following zero level of distribution system which directly controls over
market. Company following value pricing hence price of the product is little higher
than that price of packaged drinking water
Product is new concept in market it requires few years for complete adoptability
companys attempt for crating awareness about mineral water is very less, which
requires aggressive campaign.
Chapter 4 Suggestions :
Aava has strength of natural mineral water and packaging style. So, they should focus
on their strength. But they are compete with package water. They have no clear
positioning.
Distribution channel play an important role in this kind of product. But Aava does not
have sufficient distribution network. For selling and marketing Aava should improve
their distribution network and trying to cover other area of Gujarat.
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There is lack of Customer Relationship Management. Just like IIM Ahmedabad and
Grand Bhagwati etc many player relationship broken due to improper customer
relationship management. However they were rebuilt again.
Aava is so much concerned about B2B sector that it is not paying much attention on
other sectors.
Tie ups with other organization might work in the favour of Aava as it can increase
the brand and boost the sales of the product.
Aava is creating value perception in the mind of consumers but they need much more
aggressive campaigning as it is tough job to convince the India users.
Conclusion
At the end of this report, I am thankful to the management of Aava waters and
every person of the staff who gave us valuable guidance & immense information for
preparing this report, without which it would have not been possible. Indeed it was a great
pleasure to visit such organization to study in depth the various aspects of business.
Aava waters is not a huge Organization but it has created a positive brand image
and brand value in the market within a short span of time. It is tough time to compete
between other packaged drinking water firms but Aava doesnt seems to compare its product
directly to these brands but only to natural mineral water company like Himalaya waters.
Against which Aava is performing pretty well by acquiring more in B2B business.
The main purpose to visit the organization was to understand the area of
marketing and production. However company is not much into marketing of the product but
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enough knowledge was obtained about production of Natural Mineral Water and differences
of this water from other brands.
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