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§ Introduction
§ Market Segmentation
§ Porters Model
§ Consistency Analysis
§ Conclusion
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§ Packaged Drinking Water
§ Spring Water
§ Mineral Water
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 India
§ 6ottled water is the fastest growing product in beverages
category with a growth rate of 40%#.
§ There are 215 companies which have been granted license for
manufacturing packaged drinking water and 3 for
manufacturing packaged natural mineral water.

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½oreign 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 have switched to mineral water mainly because of
safety and hygiene factors.

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ëike soft drinks, drinking mineral water is also considered fashionable
by some people.
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This segment is meant to spell safety and security for consumers. It is positioned on a prestige
platform for the achiever - who likes to make a fashion statement by drinking mineral water. This
segment gets the maximum sales.

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This size has been introduced in the market to target the individual and local travelers.

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The size of the PET bottles varies from 10 to 20 litres. These are mainly for institutional sales
(Wedding parties, Hotels, Corporate, etc.)
INDUSTRY STRUCTURE ANAëYSIS
 3  

§ 5 major industry players
§ Coca-cola : Kinley
§ Pepsi : Aquafina
§ Parle : 6isleri
§ Nestle : Pureëife
§ Tata : Himalayan Water
§ ½  



- Compete aggressively on price
- Similar ´Scale & Scopeµ of operation
- Several companies will struggle down to increase market
share and try to survive with new strategies.
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6isleri International
Kinley
Aquafina
Others
   
§ Existence of substitute products
  
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‰ Main threat as there is no Switching Cost involved.
‰ Substitute products become more popular and can be considered as a
threat
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§ 6arriers to entry
  Establish brand names of global industry members
  New entrants need to overcome the tremendous marketing
muscle and market presence of Coke, Pepsi and others.
  Vast beverage distribution systems of Coke and Pepsi enables them
to have intimate relationships with retail channels and would be
able to defend their positions effectively
å Difficult to achieve economies of scale and scope similar to the big
industry players.
 ’   

§ Suppliers to the industry
- Municipal water systems, bottling equipment manufacturers,
deionization, RO, filtration equipment manufacturers, etc.
-Manufacturers of PET and HDPE bottles and plastic caps

§ Secondary packaging suppliers

- Numerous and aggressively competed for the business

‰ Power of suppliers varies due to geographical aspect (inadequate

water sources), technology adopt by supplier & inventory etc.
 J  
§ Principle Channels :
- Retail Stores, Supermarkets, Mass Merchandisers, Vending
machines etc.
§ 6argaining power of buyer is high for retail stores and
supermarkets
  Required to compete aggressively on price to gain access to
shelf space.
§ 6argaining power of buyer is none for vending machines.
§ It majorly depends on consumer preferences,municipal water
quality, market trends such as health and flavor, etc.


 

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6





Weaknesses
 Strengths
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Threats
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 Cap Cost
Rs. 0.25 Carton Cost
Rs. 0.50
6ottle Cost
Rs. 1.25 - 2.50 Transportation Cost
Rs. 0.10 ² 0.25
Water Treatment
Cost
Rs. 0.10- 0.25
Other Costs
ëabel Cost Rs. 0.25
Rs. 0.15- 0.25





 


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Wide Packaging Variety

§ Thompson, Jr., A.A., Strickland III, A.J., and Gamble, J.E.
(2008), Crafting and Executing Strategy ² The Quest for
Competitive Advantage: Concepts and Cases, 16th ed. New
York, NY: McGraw-Hill/Irwin
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