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ER
Getting pure drinking water from municipal taps in cities and towns is
ONE
now a luxury. At home most people are forced to either boil water or
INTRO
DUCTI
ON
Water is the
fountain of all
life. Even a
toddler
will
tell you it is a
prime need of
the body. Sixty
percent of our
body weight is
made up of it.
Water can also
be the cause of
much
misery
especially
India,
in
where
contaminated
water
continues
bring
India is the tenth largest bottled water consumer in the world. In 2002, the
to
down
2|Page
Coca-Cola is the most recent entrant (May 2000) with its Kinley, brand and in a controversial
and unsuccessful marketing campaign, it obtained an endorsement from the Federation of Family
Physicians' Association of India (FFPAI), a lesser known body of doctors for its brand.
Estimates show that there are around 100 small regional players in the bottle water market and
the number have been growing at an unbelievable 70%-100% per year, year on year, for the past
four years. This has enticed a number of international brands in the market besides Coca-Cola
and PepsiCo-Nestle (Pure Life), Britannia, Lever, United Breweries and Shaw Wallace. Danone
Pairs launched Evian some time back and even imported hundreds of cases for VIP guests
celebrating the Hindu festival, KumbhMela.
The government has been forced to sit up, take notice and tighten regulations after
comprehensive sample tests were taken by consumer groups and found that a number of the
smaller and more unscrupulous "opportunistic" players were selling little more than tap water.
Until recently the government of had set standards only for mineral water and even the PFA
(Prevention of Food Adulteration Act) and BIS (Bureau of Indian Standards) were deficient
when compared to international markets.
Under the new regulations 48 specifications are to be met for water to become mineral water and
for packaged drinking water there are 43 specifications. But small players are bound to fall out of
the market by April 1, 2001 when the new regulations were supposed to be enforced.
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1.3 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.
Health/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.)
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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.
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6|Page
Playing Safe
Target audience
Personality
Punch Line
Play Safe
USP
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In the case of 20 litre jar they have appointed distributor over the area to reach through the
corporate. But then also they lack in providing better service to the customer.
2. KINLEY
This brand was first introduced in the country in March 1998, when COKE launched Kinley
Soda. The company entered in the business in May00 through its brand, Kinley. The company
tied up with Kothari Beverages, of Yes brand of mineral water, for manufacturing cokes brand at
Yes facilities. Starting with Bangalore, Kinley mineral water was rolled out nationally in a
phased manner.
Positioning: Safety and health oriented
Target audience
Personality
Punch Line
USP
Error: Reference source not foundIn the case of 1 litre and 500ml it directly supplies to the
retailer without any distributor.
In the case of 20 litre jar they have their own distributor.
These above 2 are the top players in the market other brands present are:3. AQUAFINA
Entered the bottled water business in September 1999 by test launching its first in Mumbai and
then in Bangalore. PEPSI with its AQUAFINA brand has backing of a good distribution
channel of 60000 outlets, its refrigerators at retail outlets which stock its cold drinks along with
Aquafina as well. Initially Aquafina was available in just one pack-750 ml and was priced at Rs.
10. Now they also have competing packages of 500ml and 1 ltr ml pack priced at Rs.6 and Rs. 10
respectively. The main target audience for Aquafina is the youth segment. By end 2002 PEPSI
added 7 more to its existing base of 5 plants. Unlike most players, Pepsi is not looking at bulk
buys or in-house consumption at the moment. The focus was thus only on one SKU, that too
8|Page
750ml. Though the company is present only in selected market as of now, it has plans of
increasing share in the market by expanding its SKUs portfolio as well as its distribution reach.
4. NESTLE
With its mass-market product branded PURE LIFE has banked on its distribution network for
chocolate, which are marketed through a large chain of retail outlets. Pure Life is aimed to have a
National presence; the second brand which is being tried for by the company is aimed at
targeting the regional markets. Pure Life is for Mass Market like hotels, restaurants and caf
segment and Perrier for the bars, San Pellegrino for the restaurants, but nestle is not yet into
home & office segment.
The company has priced the Pure Life brand very competitively in the market.
5. THERMAX
A player of Technical Expertise is THERMAX, through a joint-venture with US-based
CULLIGAN WATER TECHNOLOGIES largely into industrial water purification. It has
entered into the household segment with the launch of 20-litre packs of drinking water branded
as Good Water, priced at Rs.60 per pack. GOOD WATEREVERFLO is positioned for
organizations that are actively improving the quality of the workplace for employees and visitors.
It is an ideal solution to those wanting to make pure, safe drinking water available, without
buying and maintaining in-house equipment like purifiers, water coolers etc. However the
company has no plans to introduce smaller package for its product
6. BAILEY
Though a pioneer in this field; Mr. Ramesh Chauhan Chairman- of Parle Bisleri had to contend
with several new entrants in this segment. For starters, his own brother, Mr. Prakash Chauhan
through Brand Bailey has been trying to emulate the Bisleri success through the franchising
route, but Bailey has never been successful in it. The brand is a product of Parle Agro, the
company of Frooti fame. The company presently is the second largest player in the market with
share of 20%. The company has recently extended its Bailey brand name for its soda water. It is
also credited with forming a new segment of 330ml SKU in the market
Target audience
9|Page
Personality
Punch Line
I want my bailey
USP
7. EVIAN
Evian by DANONE INTERNATIONAL is marketed by BRITANNIA INDUSTRIES in India.
The high-priced mineral water from French Alps is clearly targeted at the premium segment of
consumer. Currently Evian has more of an Institutional presence (5 star hotels) than on retail
shelves. With 1 litre bottle being priced a hefty Rs.80
Then, there is GODREJ with AQUAPURE.
Britannia also plans to launch its own branded water very soon.
NATIONAL DIARY DEVELOPMENT BOARD also plans to launch DHARA through its
distribution channel.
New Entrant ATCO with BRILLIANT WATER &DS FOODS with CATCH SPRING water
positioned on the mineral water plant.
Even HLL is said to be firming up plans to enter the market. Apart from these, are other players
which cater to nearly same market as the big players do. Other players in the market with strong
regional presence are: Brilliant, Yes, Hello, Purette, Fountain, Himalayan, Golden Eagle, Prime,
Pure Natural Aqua, Ganga, Florida, Metro etc
10 | P a g e
CHAPTER TWO
BISLERI
2.1 COMPANY PROFILE OF BISLERI
11 | P a g e
Some of the future plans to maintain the top spot that Bisleri commands in
the Indian market are:
Product packaging
To ensure purity of the bottled water, the bottles that are used are blown
and filled at the factory itself, to avoid contamination.
13 | P a g e
2.7 Vision
A
major,
diversified,
transitional,
integrated
consumer
product
Mission
15 | P a g e
17 | P a g e
2006: Bisleri Natural Mountain water will be available in aqua green packaging against the blue
packaging of old and will be available in six sizes.
2007: Parle Bisleri changed the look introduced a new variant (natural mountain water) and
announced its plan to launch the brand in US- a huge market for designer waters.
2008: Bisleri International has decided to register the mango drink brand Maaza in eastern
European countries, and launch the brand through a franchisee operation.
2009: Company plans to concentrate on markets such as Jammu and Kashmir, Kerala, Southern
part of Tamil Nadu and Punjab, which are its weaker links to steer a 40% annual growth in sales.
CHAPTER THREE
LITERATURE REVIEW
3.1 BOTTLED 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.
The casing tube itself is protected with stainless steel mesh to give a preliminary filtration to
the water.
Reverse osmosis membrane has porosity of less than 0.01 micron the process renders water
free of microorganisms and also reduces dissolved solids
www.nrdc.org/water/drinking/
To ensure mineral water is held safe free from contamination, ultraviolet treatment and ionization
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 ionized 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 in-house 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.
Labeling
The Name of the Product shall be the appropriate terms as defined. Water containing carbon
dioxide that emerges from the source and is packaged directly with its entrapped gas or from
which the gas is mechanically separated and later reintroduced at a level not higher than
naturally occurring in the water, may bear on its label the words naturally carbonated or naturally
sparkling. Packaged water which contains carbon dioxide at levels than those naturally occurring
in the source of the product shall be labeled with the words carbonated, carbonation added or
sparkling.
Rules and Regulations
The Bureau of Indian Standards (BIS) has just recently got involved in the process. In September
2000, the Government of India made it mandatory for all bottled water companies to get an ISI
mark, including imported bottled water brands like Evian and Perrier. The Ministry of Health and
Family Welfare had set a deadline of Mar 29, 2001 for complying with the new norms.
www.nrdc.org/water/drinking/
Each of these consumption markets have a number of SKUs under it. Some of the most
consumed SKUs in retail market are 500ml, 1 litre, 1.2 litre, 1.5 litres, 2 litres, and 5 litres.
Recently Bailley has launched 330ml pack targeted against 330ml pack size of soft drinks
especially the aluminum-can drinkers.
The institution market is largely constituted by the hotel industry, caterers, offices, parties, travel,
tourism, hospitals etc. The SKUs that are available in this market are 10 litres and above besides
this we have pack size of 250ml plastic cups.
The market can also be divided on the basis of the price at which this bottled water is available
into three categories:
Presently, Evian of Danone group; Perrier and San-Pellegrino of Nestle belong to super premium
category. Catch, Himalayan, Brilliant etc. belong to premium local natural mineral water
category.
All other brands like Bisleri, Bailley, Kinley, Aquafina etc. belong to popular or plain bottled
water category.
The packaged drinking water market is often categorized as per the clients they have:
Corporate, Theaters, Gymkhanas, College Canteens, Retail Outlets, Hotels and Restaurants and
Occasions.
www.nrdc.org/water/drinking
www.bottledwaterindia.web
www.bottledwaterindia.web
TABLE1
EXPONENTIAL INCREASE IN DEMAND OF BOTTLED DRINKING WATER:
1990-2015
Year
Million Cases
1990-91
2.2
1991-92
2.6
1992-93
3.5
1993-94
4.7
1994-95
6.5
1995-96
8.5
1996-97
11.5
1997-98
15.5
1998-99
20
1999-2000
26
2000-2001
33
2001-02
44.5
2002-03
55.6
2003-04
68.15
2004-05
82
2005-06
97
2006-07
112.85
2007-08
129.85
2008-09
146.8*
2009-10
164.45*
2014-15
265*
Source:indiastat.com
Estimated Projects(Prediction)
After 2005-06 bottled water sales increased in market and it showed growing stage of industry,
because people started using bottled water for status and for health safety. Now in 2008 bottled
water industry grew at a rate of 38% so its sales increased faster as compared to past year so we
can say that the industry came under growth stage. Maintaining existing features and adding new
features to the product was seen here, broader audience was available for industry product.
In India for instance, the bottled water industry, with more than 100 companies, has a turnover of
about US$ 70 million, growing at an average rate of 50% every year. This sector employs 15'000 to
20'000 people in the country (Jose Raphel, 1998).
Ha: 5 ltr and 10 ltr bottles of mineral water are not preferred by the population.
5. Effect of advertising on purchase
Ho: Advertisement doesnt affect purchase decision of Mineral Water.
Ha: Advertisement affects purchase decision of Mineral Water.
6. Size of bottle having higher sales
Ho: Selling of 5 ltr& 20 ltr bottles occur more frequently.
Ha: Selling of 5 ltr& 20 ltr bottles occur less frequently.
7. Reason for growth during the last five years, according to retailers.
Ho: Tremendous growth in mineral water segment is not owing to increased health
consciousness and scarcity of portable drinking water amongst the population.
Ha: Tremendous growth in mineral water segment is due to increased health
consciousness and scarcity of portable drinking water amongst the population.
CHAPTER FOUR
RESEARCH METHODOLOGY
4.1 RESEARCH DESIGN
A research design is purely and simply the framework or plan for a study that guides the
collection and analysis of data. The Survey Research was used in this project, because retailers
and consumers feedback was necessary for obtaining the data. Starting a research project needs a
basic preparation regarding the issues related to the topic selected. For this one needs to do some
deskwork. Deskwork includes:
1. Determining the basic objectives of the study undertaken.
2. Collection of secondary data related to the topic from Internet, magazines & newspapers.
3. Studying the market, which one wants to cover.
4. Analyzing the objective on the basis of information collected by secondary data.
5. All the above activities at the initial stage of the project must be completed & then the main
part follows.
4.2 DATA SOURCES
a) Primary data: These are those data which are collected afresh and for the first time, and thus
happen to be original in character. I have used the structured questionnaires.
b) Secondary data: These are those which have already been collected by someone else and
which have already been passed through the statistical process. I have collected it from the
sources like internet, published data etc.
Sample Size:
I took 100 consumers and 50 retailers as my respondents. They were selected by random
sampling method because in this case systematic sampling is not possible since one cannot say
whether a person is using mineral water or not.
Sampling Technique
Random sampling technique will be used in this research project.
Mode of Survey
The mode of survey for the retailers and consumers was the filling up of the questionnaires.
Analytical Tools
After collection of data another work necessary for any data collector is to correctly analysis that
data. Statistical tools helped me to correctly analyze the data. I used here the software named Ms
Hypothesis Testing
Chi-square test will be used when the set of observed frequencies obtained after experimentation
have to be supported by hypothesis or theory. The test is known as 2 test of goodness of fit and
is used to test if the deviation between observation (experiment) and hypothesis may be
attributed to chance (fluctuations of sampling).2also enables us to explain whether or not two
attributes are associated or related to each other.
To test the goodness of fit: It helps to test goodness of fit by using null and alternate hypothesis.
CHAPTER FIVE
ANALYSIS AND INTERPRETATION
CONSUMER RELATED SURVEY
1. WHICH BRAND DO YOU PREFER WHILE BUYING MINERAL
WATER?
NAME OF BRAND
Bisleri- Most Preferred
Kinley
Aquafina
Others
CONSUMER PREFERENCES
56%
24%
12%
8%
According to the survey conducted in Delhi & its Ncr it was analyzed that 56% of
the users go for Bisleri Water and 24% for Kinley while there are 8% of the
respondents who still go for other packaged drinking water.
Always
Often
Sometimes
28%
27%
36%
Never
9%
According to the survey it was seen that 28% of the users responded as
using mineral water always while 27% agreed to use it often. 36% of
respondents said they used mineral water sometimes while there are 9% of
the respondents who said they never use packaged drinking water.
HYPOTHESIS TESTING
Step1: State Hypothesis:
Ho: Larger Proportion of people always use mineral water.
Preference
Observed
Expected
(O-E)
(O-E)^2
(O-E)^2/E
Always
28
25
0.36
Often
27
25
0.16
Sometimes
36
25
11
121
4.84
Never
25
-16
256
10.24
2=15.6
Interpretation:
As the Chi-square test statistics value 15.6 exceeds the critical value of
7.82 hence null hypothesis is rejected and our alternative hypothesis is
accepted. Hence it can be concluded that that 34% of the mineral water
users go in for an occasional use while there are still 9% of the respondents
who never go for packaged water.
Always
Often
Sometimes
Never
48%
15%
25%
12%
48% respondents agreed to always choosing mineral water over soft drinks
when thirsty while 15% chose it often, 25% agreed to choosing it
sometimes while 12% consumers said they never have mineral water when
thirsty.
HYPOTHESIS TESTING
Step1: State Hypothesis:
Ho: People prefer soft drink when thirsty.
(O-E)^2 (O-E)^2/E
Always
45
25
20
400
16
Often
15
25
-10
100
Sometimes
25
25
Never
12
25
-13
169
6.76
X2=26.76
Interpretation:
As the Chi-square test statistics value 26.73 exceeds the critical value 7.82
hence null hypothesis is rejected and hence we reached at the result that our
alternative hypothesis is accepted. Hence it can be concluded that that 48%
of users always go in for mineral water when they are thirsty.
Brands
Respondents
0-2
40%
3-5
50%
ll
6-10
10%
10 and above
The survey conducted in showed that 40% of the respondents were aware
of 0-2 brands packaged drinking water, 50% of 3-5 brands, 10% were
aware of 6-10 brands while none were aware of more than 10 brands.
HYPOTHESIS TESTING
Step1: State Hypothesis:
Ho: People are aware of all the brands of mineral water.
Ha: People are not aware of all the brands of mineral water.
(O-E)^2 (O-E)^2/E
0-2
40
25
15
225
3-5
50
25
25
625
25
6-10
10
25
-15
225
10 and above
25
-25
625
25
2 =68
Interpretation:
As the Chi-square test statistics value 68 exceeds the critical value of 7.82
hence null hypothesis is rejected and hence we reached at the result that
our alternative hypothesis is accepted. Hence it can be concluded that most
of the people know only about the main brands which are owned by the big
companies and are advertised hugely. Mainly 3 -5 brands only comes to the
minds of the customer in regards to mineral water.
SIZE OF BOTTLES
PREFERENCES
CONSUMER
0.5 ltr
60%
1 ltr
20%
5 ltr
5%
20 ltr
15%
(O-E)^2 (O-E)^2/E
0.5 ltr
60
25
35
1225
49
1 ltr
20
25
-5
25
5 ltr
25
-20
400
16
20 ltr
15
25
-10
100
2 =70
Interpretation:
As the Chi-square test statistics value 70 exceeds the critical value of 7.82
hence null hypothesis is rejected and hence we reached at the result that
our alternative hypothesis is accepted. Hence it can be concluded that that
the 5 Ltr. and 20 Ltr. bottles are usually preferred only during special
occasions such as marriage and Birthday parties. Otherwise the 1 ltr and
500 ml bottles are the most preferred once.
Respondents view
% of Respondents
Yes
42%
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.
No
58%
Response
% of respondents
Strongly Agree
10%
Agree
46%
Strongly Disagree
14%
Disagree
25%
Indifferent
5%
46% agreed to the fact that advertising of packaged drinking water affected
their purchase while 10% strongly agree, 25% of the respondents
disagreed, 14% strongly disagreed, while 5% consumers said they were
indifferent towards it.
HYPOTHESIS TESTING
Step1: State Hypothesis:
Ho: Advertisement doesnt affect purchase decision of Mineral
Water.
Preference Observed
Expected
(O-E)
(O-E)^2
(O-E)^2/E
Strongly
10
20
-10
100
Agree
46
20
26
676
33.8
Strongly
14
20
-6
36
1.8
Disagree
25
20
25
1.25
Indifferent
20
-15
225
11.25
agree
disagree
2=53.1
Interpretation:
As the Chi-square test statistics 53.1 exceeds the critical value of 9.49
hence null hypothesis is rejected and hence we reached at the result that
our alternative hypothesis is accepted. Hence it can be concluded that
advertisements affect purchase decision of Mineral Water.
Good Availability
% of respondents
Yes
51%
No
47%
Cant say
2%
It was seen in the survey that 51% said that their choice of mineral water
was readily available everywhere, whereas 47% disagreed and 2% were
not sure.
Yes
73%
No
27%
The observation shows that most of the population in Delhi & its NCR
agree that Indian are getting Health Conscious now-a-days
Yes
82%
No
18%
The reason for the higher preference for Mineral water considering hygiene
important may be the fact that the normal water which we get is not always
very hygienic and may cause many diseases, also the increase in the
awareness of being fit and people becoming health conscious.
Advertised
35%
Non-Advertised
5%
Both
60%
According to survey, 35% of retailer go in for advertised products and nonadvertised products do not have any weight Around 60% retailer believe in the
combination of both (advertised and non-advertised version).
NAME OF BRAND
Bisleri
Kinley
Aquafina
Others
% OF RETAILERS AGREEIN
62%
26%
4%
8%
According to the survey of retailers 62% said the most sold brand was Bisleri
followed by Kinley to which 26% agreed while 4% said that Aquafina was
sold most and 8% voted for other brands.
Size of bottle
0.5 ltr
% of respondents
60%
1 ltr
28%
5 ltr
20 ltr
4%
12%
According to the survey of retailers 60% said that 500ml bottles were sold
most followed by 1ltr as said by 28% while 4% and 12% said 5lts & 20ltr were
sold the most.
HYPOTHESIS TESTING
Step1: State Hypothesis:
Ho: Selling of 5 ltr& 20 ltr bottles occur more frequently.
Ha: Selling of 5 ltr& 20 ltr bottles occur less frequently.
Preference Observed
Expected (O-E)
(O-E)^2
(O-E)^2/E
0.5 ltr
30
12
18
324
27
1 ltr
14
12
0.33
5 ltr
12
-7
49
0.75
20 ltr
12
36
3
2=31.
08
Interpretation
As the Chi-square test statistics 31.08 exceeds the critical value of 7.82 hence
null hypothesis is rejected and hence we reached at the result that our
alternative hypothesis is accepted. Hence it can be concluded that both 0.5 Ltr
and 1 Ltr version are selling well but 5 Itr are selling less as compared to
others.
Reasons
% of Respondents
48%
10%
14%
26%
2%
Mostly the demand by the customer is the main reason for selling of
particular brand of Packaged Drinking Water and then it comes to
schemes, advertisements and margins. The other reasons included
availability, replacement of leaked bottles etc.
HYPOTHESIS TESTING
Step1: State Hypothesis:
Ho: Demand of the customer is not the main reason for selling of a
particular brand of packaged drinking water.
Preference
Demand by
the customer
Schemes
Observed
24
Expected (O-E)
(O-E)^2
(O-E)^2/E
10
14
196
19.6
10
25
2.5
10
-3
0.9
10
0.9
10
-9
81
8.1
offered by the
companies
Advertisement 7
More margins
Others
13
1
2=32.
00
Interpretation
As the Chi-square test statistics 32 which exceeds the critical value of 9.49
hence null hypothesis is rejected and hence we reached at the result that our
alternative hypothesis is accepted. Hence it can be concluded that demand of
the customer is the main reason for selling of a particular brand of packaged
drinking water.
% of respondents
Bisleri
40%
Kinley
28%
Aquafina
11%
Others
21%
Among the 50 retailers that took part in the survey 40% said that they earn
maximum margins on Bisleri while 28% said Kinley and 11%& 21% said
Aquafina and others respectively.
Health consciousness
38%
Advertisements
32%
Scarcity of water
25%
According to the retailers the growth rate has been very high as 38% think that
the population has become health conscious, 32% say it is due to scarcity of
drinking water and 25% say it is due to increased advertisements while 5% say
that there may be other reasons like higher living standars, more disposable
income etc.
HYPOTHESIS TESTING
Step1: State Hypothesis:
Ho: Tremendous growth in mineral water segment is not owing to
increased health consciousness and scarcity of portable drinking water
amongst the population.
Others
5%
Preference
Observed
Expected
(O-E)
(O-E)^2
(O-E)^2/E
Health
38
12
26
679
56.33
Advertisement
32
12
20
400
33.33
Scarcity of
25
12
13
169
14.33
12
-7
49
4.08
Consciousness
portable
drinking water
Others
2 =108.7
Interpretation:
As the Chi-square test statistics value 108.07 exceeds the critical value of
7.82 hence null hypothesis is rejected and hence we reached at the result
that our alternate hypothesis is accepted. Hence it can be concluded that
Last five year seen a tremendous growth in the mineral water segment.
The growth rate has been very high, owing to increased health
consciousness amongst the population, arising from scarcity of potable
drinking water.
Retailer's prediction
Excellent
Good
Average
Poor
% of retailers
42%
30%
16%
12%
40% of the total respondents said that the future prospects of the mineral
water industry is excellent, 30% said it was good while 16% gave it an
average & 12% said it had a poor future.
Weakness
Lack of brand loyalty as MNC's are entering the market like Nestls
Purelife, Pepsi's Aquafina.
Lack of Global Awareness in brand.
Lack of proper advertising to create brand awareness.
Market coverage is not fully utilized.
Opportunity
Indian bottled water industry is still at growth stage.
Influence of tourists and expatriates.
Bisleri as a daughter company of Parle has a strong presence in India.
Unreliable municipal water quality.
People are becoming health conscious.
Threats
Numbers of players like Kinley and other local players are present in
the market have already captured the market.
Tough competition from MNC's like Coke & Pepsi.
Fluctuation in sales due to seasonality.
Local manufacturers who refill used bottle Hampers the image of the
industry.
Water filters and soft drink industry is a major threat to industry.
Coke and Pepsi are already having strong distribution network in bottle
water industry with their own fleet of trucks & vans.
PEST ANALYSIS
Political Analysis
Government failure to provide safe drinking water.
Laws encouraging ground water exploration.
Environmental regulations.
Economic Environment
Developing Economy.
Better infrastructure:
Social Environment
Scarcity of water.
Technological Environment
Economies of scale
CHAPTER SIX
DISCUSSIONS OF STUDY
100 consumers & 50 retailers were identified in some of major areas in the
city for conducting the survey.
FOLLOWING
INFERENCES
WERE
DRAWN
FROM
THE
FINDINGS....
Brand awareness of the customers is mainly more about the top, more
publicized brands which they also brought more.
Initially we enquired about the numbers of brands that the retailers sell
and most of them specified not more than 3 - 4. This indicates that the
retailers prefer only the main brands.
CHAPTER SEVEN
RECOMMENDATION AND SUGGESTIONS
FOR BISLERI
Hospitality
industries:
Hotels,
restaurant,
Bakers
&
Retail segment: All Panwalas, general store, and Juice & Ice
cream parlors.
CONCLUSION
After analysis of the data & facts we have collected from consumer &
the retailers & matching them with the objectives one can say that
there is very good future for mineral water market. Soft drink
market might be some threat to the mineral water at present but
within few years the scenario is going to change. Trend signifying
increasing health consciousness amongst Indians could also be
observed.
Market has seen a tremendous growth from the early nineties & now
it is increasing by 40% every year so one can easily say there is great
potential in the mineral water market.
It could also be observed that the living standards of the people
improving & as they are becoming health conscious are ready to pay
for water now. On the question of survival of so many companies
government has made policies & restrictions from April 2001 which
will force many manufactures to shut down their factories. But due to
potential in the market companies with quality product will survive.
Finally from the data collected at both primary and secondary level
one can confidently say that Bisleri as packaged water brand is the
current market leader.
CHAPTER EIGHT
LIMITATIONS OF THE STUDY
Any research or study always has some limitations under which this has to
be undertaken. This one too was not an exception. These limitations are
poised by the environment some external and some inherent. This study
has been conducted with utmost consideration to the adequacy of data and
quality of information, though as mention earlier the reliance on the
sources cannot be minimized to zero in context of precision. The limitation
can be enlisted as hereunder:1. The perception level of the respondents. The responses given by
respondents were not always accurate because the respondents gave
the response according to their understanding.
2. Availability of documents as sources of secondary information.
3. Reliability of information collected from various public information
sources such as magazines and website.
4. Respondents are not willing to fill the questionnaire.
5. Very often the respondent do not express their true feelings, in such
case their habit, preference, practice, cannot be assessed correctly.
6. Some of the respondents refuse to give the important information best
known to them.
7. Time was a limiting factor for the study
8. Cost and coverage of survey area
However in spite of these limitations all efforts have been put to make the
report correct, genuine, and fulfilling the objectives of the reports.
CHAPTER NINE
REFERENCES
BOOKS & JOURNALS
Kotler Philip, Marketing Management New Delhi, Prentice Hall
of India, 2003(9th edition)
Kothari C.R, Research Methodology New Delhi, VishwaPrakash,
2003(2nd edition).
S H.W. Boyd, R. Westfall and S.F. Stasch, Marketing ResearchText and Cases (7th Edition)
Britannica Encyclopedia
Mr. Hari Sundar(2008), Indian Packaged drinking water industry,
Advertising Express page no-55
Jaspreet Bhasin Chandok (2003), Strategies for Survival of Indian
FMCGs Journal of Retailing Vol. 68,Pg 34
Catherine Ferrier(2001), Bottled water: Understanding a social
phenomenon , WWF Reports
OTHERS
Internet
Magazines
en.wikipedia.org/wiki/Bisleri
www.finewaters.com/Bottled_Water/India/Bisleri.asp
www.bisleri.com/
www.bottledwaterindia.web
www.nrdc.org/water/drinking/
ANNEXURE
CONSUMER QUESTIONNAIRE
Name of the respondent
__________________________
QUESTIONS
Ql. How often do you consume mineral water?
a) Always
b) Sometimes
c) Often
d) Never
Q2. When feeling thirsty you opt for Mineral water over Soft drink,
juices etc
a) Always
b) Sometimes
c) Often
d) Never
Q3. How many brands of mineral water are you aware of?
a) 0-2
b) 3-5
c) 6-10
d) 10 and above
b) 1 ltr.
d) 20 Itr
Q6. Do you think mineral water is much more hygienic than normal
water?
a) Yes
b)No
Q7. Do you think the price the companies are charging, is worth the
product?
a) Yes
b) No
Q8. Does advertising of this product has any effect on your purchase?
a) Yes
b) No
Q9. Do you think Indians are getting more health conscious day by
day?
a) Yes
b) No
b) Kinley
c) Aquafina
d) other
RETAILER'S QUESTIONNAIRE
QUESTIONS
Q1. How many brands of mineral water do you sell (specify)?
a) 2-3
b)3-5
c) More ___________
Q2. What types of brands do you have?
a) Advertised
c) Both
b) Non-Advertised
b) Aquafina
c) Kinley
d) Others
b) 1 ltr
b) 51tr
d) 20 Itr
______________
b) Aquafina
c) Kinley
d) Others
Q6. Do you feel there is growth in the mineral water market in the last
5 years?
a) Yes
b) No
Q7. If answer to above question is yes, then what do you think is the
reason for this
growth?
a) Increase in Health consciousness of people
b) Increase in Advertisements
c) Scarcity of drinking water
d) Others
Q8. What is the future prospect of this market?
a) Excellent
c) Average
b) Good
d) Poor