36803006 Project on Catch

7/30/2019 36803006 Project on Catch

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Project Report



FOR THE PARTIAL FULFILLMENT OF THE REQUIREMENT

FOR THE AWARD OF

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UNDER THE GUIDANCE OF: UNDER THE SUPERVISION OF:

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SUBMITTED BY:

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PROJECT REPORT ON

MARKETING STARATEGIES OF

―CATCH‖



PROJECT GUIDE: SUBMITTED BY:

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COMPANY CERTIFICATE

TO

WHOM IT MAY CONCERN

This is to certify that Mr.Gagan Sharma, a student of GLOBAL SCHOOL OF BUSINESS,

FARIDABAD undertook a project on “ Marketing Strategies of DS Group” at Dharampal

Satyapal Ltd from 1ST June to July 15th, 10.



Mr. Gagan Sharma has successfully completed the project under the guidance of Mr. Rajesh

Sarao. He is a sincere and hard- working student with pleasant manner.

We wish all success in his future endeavours.

Signature with date

Name

Designation

Company name

CERTIFICATE TO ORIGIN

This is to certify that Mr. Gagan Sharma, a student of Post Graduate Degree in MBA(2009-11), GLOBAL SCHOOL OF BUSINESS, FARIDABAD has worked in Dharampal Satyapal

Group under the able guidance and supervision of Mr. Rajesh Sarao (AGM), Catch

Beverages Raison.

The period for which he was on training was 7 weeks starting from 1st June to 15th July‘ 10.

This summer internship report has the requisite standard for the partial fulfilment of the Post

Graduate Degree. To the best of our, knowledge no part of this report has been reproduced

from any other report and the contents are based on the original research.



Signature Signature

(Faculty Guide) (Student)

ACKNOWLEDGEMENT

I express my sincere gratitude to my industry guide Mr. Rajesh Rao (AGM), Catch Beverages

Raison, for his able guidance continuous support and cooperation throughout my project,

without which the present work would not have been possible.

I would also like to thank the entire team of the Dharampal Satyapal Ltd. For their constant

support and help for the successful completion of the project.



Also I am thankful to my faculty guide Ms. Chavi Mathur of my institute for her continuous

guidance and invaluable encouragement.

Signature

(Student)

Table Of Content

Chapter No Topic

1. Dharmapal and Satyapal group

1.1 Company Profile

1.2 Stirring Saga Of An Enterprise

1.3 About The Plant



1.4 Catch Cola, Lemon and Orange

1.5 Mission Vision Statements

2. Introduction To Mineral Water Industry Of

India

2.1 Bottled Water Industry In India

2.2 Govt. Failure To Address Basic Services

2.3 Water Resources Over Exploited?

2.4 Bottled water? How Safe?

2.5 Growing Prospective Of Packaged drinking Water

Industry

3. Research

3.1 Research Methodology

3.2 Research Process

3.3 Need and Importance Of Study

3.4 Data Presentation , Analysis & Interpretation

4. Major Competitors

5. Target market And Major Segments

6 Marketing Strategies

6.1 Product Range

6.2 Pricing Strategy



6.3 Promotion Strategies

6.4 Distribution Channel

7. Reasons For Company’s Lack Of Interest In

Mineral water Industry

7.1 SWOT Analysis

7.2 BCG Matrix

8. PEST Analysis

9. Conclusion

10. Appendix

11. Bibliography

EXECUTIVE SUMMARY

The current management is dealing with the determination, mantainence, control and

monitoring the level of individual performance toward the attainment of future goals.

Need for the study

To identify the difference between mineral and packeted drinking water.

To study the market of catch on big scale in FMCG.



To compare various parameters of marketing strategies, manufacturing process, technology

adopted, production policy, advertising, collaboration, export scenario, future prospect and

government policies.

To study the level of customer satisfaction.

To study customer buying behavior and factors which influence the purchase decision

process.

To study consumer preferences.

To study the consumer trend in the beverage sector.

OBJECTIVE OF THE STUDY

Every organization has to achieve its organization goals. For this it is very essential for an

organization to know about the view of consumers and their competitive products. Thissurvey research may be also aimed as to estimate potential buyer for the product. The

objective of the study is as under:-

To identify the difference between market performance of catch beverages.

To compare various parameters of marketing strategies, manufacturing process, technology

adopted production policy, advertising, collaboration, export scenario, future prospect and

government policies.

To study customer buying behavior and factors which influence the purchase decisionprocess.

To know how the company has been successful in encountering the aggressive marketing

strategies of competitors.

SCHEDULE

The complete project was of 7 weeks. The project has been divided into 2 stages with

approximate time period allotted to each stage. Both the stages along with their approximate

timelines are as follows:

STAGE 1 (APPROX 2 WEEKS)

The study of company‘s working profile, previous history and its current position were studied on thisphase.

STAGE 2 (APPROX 5 WEEKS)



The study of the overall working of the management of the company was the first stage. Under this stagethe operating plans prepared and the study and analysis of the products being done. This phase alsoconstitute the various surveys done regarding that.

SCOPE OF THE STUDY

To study the market attractiveness toward beverage industry and to study the marketingstratergies of catch.

LIMITATIONS

In spite of my continued efforts to make the project as accurate and wide in scope as possible,certain limitations are becoming evident while implementing the project. These limitationscannot be removed and have to be accepted as permanent constraints in implementing theproject.

Some limitations, which have been identified, by me are:

1. Generalizations and calculated assumptions had to be made in some areas while analyzingthe market, due to non-availability of complete information.

2. The segment wise and product wise study of the various product segments and units of thecompany have been excluded from the scope of the project due to data and time constraints.



THE DHARAMPAL SATYAPAL GROUP

COMPANY PROFILEDharampal Satyapal Group (DS Group) is more than Rs. 1400 crores diversifiedconglomerate, which is committed towards high quality products & credited with severalinnovations over last seven decades. The sagacity to weave its business around consumerneeds has conferred DS Group with a distinct value. Efficient capital structure, cutting edgetechnology, operational discipline and a widespread distribution network, have togetherattributed to enhance ‗Brand DS‘, and enabled the organization to deliver continued growth in all areas of operation.

Its undeterred pursuit for ‗Quality & Innovation‘ has led the Company to progress on a pathof growth. The Group has consolidated its position into diversified sectors like FMCG,Packaging, Hospitality, Rubber thread, Cement and other businesses.

Beginning its journey with Tobacco, DS Group successfully ventured into the arena of Foods& Beverages, alluring the consumers with a wide range of beverages, spices, and ready-to-eatsnacks under the brand ‗Catch‘. While ‗Catch‘ Natural Spring Water and its variants continue

getting great response from consumers, ‗Catch‘ Salt & Pepper tabletop dispensers hold their

supremacy as India‘s firs trotatory table top dispensers. Catch Spices excessively continues to be connoisseurs‘ favorites. The latest products to be introduced under catch brand are CatchJal Jeera & Catch Nibu Pani.

In the Mouth Freshener Category, non-tobacco, Rajnigandha rules the market as the world‘s

largest selling premium pan masala. ‗Pass Pass‘ has created a new product category all -

together as India‘s firs tever branded ‗all natural‘ non supari assorted mouth freshener.Taking forward the Indian tradition of eating and serving mouth freshener softer meals,Rajnigandha, the premium mouth freshener brand, has introduced a mild new flavour,―Meetha Mazaa- the Indian Mouth freshener‖. Reinforcing the emphasis on the quality at all

levels,Meetha Mazaa is revitalizing.

Recognizing the immense potential in the Hospitality Segment, DS Group forayed into thissegment with ―The Manu Maharani‘ at Nainital, in 2001. The Group acquired the AirportHotel at Kolkata. The hotel is currently being revamped and renovated and will soon emergeas an International standard destination with Five Star Hotel, a budget hotel & largeConvention Centre, in addition to a sprawling Commercial area. The five star hotel building

projects have also commenced inGuwahati and Jaipur. In addition to the above ventures, landhas been acquired in cities like Udaipur, Shimla, Mussorie, Corbett Park, Manali and Goawith plans to set up hotels & resorts. With a boom in tourism sector, the group is all set toemerge as one of the leading players inthe hospitality segment.

Further pursuing its quest for diversification, DS Group has launched colossal projects in thePackaging sector. DS Canpac Ltd., an ecofriendly revolutionary packaging technology, waslaunched in India in association with Canpac – a leading Switzerland based packaging major.A state-of-the-art plant at Noida offers packaging solutions toother FMCG marketers as wellas exporters of food products. The grouphas also commissioned an ultra modern FlexiblePackaging Unit in Bonda.



A heat resistant latex Rubber thread plant has been set up at Agartala to produce internationalquality rubber threads. Latex rubber threads are made from natural rubber applying the mostsophisticated European technology. Following close behind is a first-of-its kind Steel sheetsplant coming up soon in the North East to produce cold rolled sheets, CRCA and galvanizedsteel sheets.

In line with its vision of diversification, DS Group has entered the fast growing CementIndustry. The Project is located at the Khliehriatsub division of District Jaintia Hills inMeghalaya. The capacity of the upcoming plant will be approximately 1 million tons PerAnnum and will have a captive power plant based on coal. This will be one of the largestinvestments on new projects, by the Group.

As a significant step in Infrastructure Sector, DS Group has signed a MOA with state Govt.of Meghalaya to set up a 240 MW Thermal Power Plant, based on coal.

The group has manufacturing units in Noida, Delhi, Baroitwala in HP, Kullu, Assam and

Tripura. DS Group boasts of World Class Facilities spread across the length and breadth of the country, to execute its manufacturing processes with full adherence to internationalstandards of quality. Every stage of manufacturing is monitored with utmost care andattention.

The company also has a widespread distribution network supported by dealers and retailers.The group constantly upgrades its strength through dealer network expansion, up -gradationof production facilities and bringing greater consumer orientation, while maintaining itscommitments to high quality, innovation and consumer value carried forward in all itsdiversification endeavours.

DS Group constantly nurtures its responsibility as a committed corporate citizen, byregarding Corporate Social Responsibility as an integral part of its Business Objectives. TheCompany has been working in Assam and Tripura, on a wide range of CSR programmesranging from education to health and making tribal and ethnic communities self reliant.Under the CSR initiatives the group is renovating local schools, setting up a State levelCollege anddeveloping heritage properties and construction of an eco lodge to beowned andrun by the tribal community. While DS Group pursues leadership in its business spheres; itsimultaneously endeavors to promote common welfare through multidimensional activities towork towards an all round development tof the society.

DS Group makes constant improvisations in all its manufacturing components, leading to themaking of a perfect product. Be it the sourcing of raw materials, the process of production, orpackaging ofthe final product, R&D remains the crux of DS Philosophy. QualityandInnovation are the two core values that DS Group subsists on.

In its constant effort towards building trust among its audience, the Group works strongly onthe principles of integrity, dedication,resourcefulness and commitment. A wide array of skillsand substantial depth of experience has not only led the Group to maintain its leadership in itstraditional businesses but has also resulted in gradually gaining market in its relativelynascent forays.



The Stirring Saga of an Enterprise

In the early 20th century, when trade and commerce had not witnessed the advent of brandsand marketing warfare in India, Shri Dharampalji – the founder of DS Group, set up a smallperfumery shopin Chandni Chowk, Delhi in the year 1929. The urge to create abusiness

around consumer tastes and preferences led Dharampalji to innovate quality products. Hissagacity revolutionized the market ofchewing tobacco and the shop in Chandni Chowk became renowned not only in Delhi but even amongst the connoisseurs of tobacco inotherparts of India and the world. Blending modernity, technology and tradition, Dharampalji‘s

son Satyapalji brought the dawn of a new era an era that saw a revolution. Satyapaljiinherited qualities of high virtues, innovation and aspiration for being the best in the business.His in-depth knowledge of perfumes honoured him the title of ―Sugandhi‖ (perfumer). He is

credited with blending tobacco with various exquisite fragrances. He is also known forbringing the element of quality and research hitherto unknown in this category. Under theable stewardship of Satyapalji, the nation‘s first ever -branded chewing tobacco BABA waslaunched in 1964 which became an instant success and widely popular in its category. Andwhat followed later was anarray of premium brands like Tulsi and a host of others whichhave established their leadership in their own category and created newmarkets in its wake.Continuing the fervour of innovation and quality, the Group set new benchmarks in Foods &Beverages. Innovative tabletop sprinklers changed the way Indian households had beenenjoying salt and spices. Be it Catch spices or Catch Beverages, today Catch stands forinternational quality and convenience. Mouthfresheners like Rajnigandha and Pass Passcreated new offerings and established new categories. The Group has also ventured into arapidly growing hospitality sector with extensive five star properties in thelarger cities andboutique & heritage properties at tourist destinations.The Group has also successfully ventured into Packaging, Rubber Thread, Steel in the last

few years. Since the launch of BABA, the Group has never looked back, reaching formilestones year after year.Thus, evolving from a single product to multiple brands, DS has successfully woven overeight decades legend of innovation andenterprise. And the quest for innovationcontinues……..

Establishing Benchmarks with Innovative First -

1) First to offer saffron flavoured chewing tobacco in the world.

2) First to launch branded chewing tobacco in India in metal

packaging

3) First and only chewing tobacco company in India to get ISO9001:2000 certification

4) First to introduce various kinds of spices in one-time usepackaging

5) First to launch free flowing salt in revolutionary table top rotatorydispensers in India



6) First to introduce 100 per cent biodegradable, composite cans packs which are pilfer proof,rust proof and leak proof using brine and through vaccum evaporation process for foodproducts

7) First to introduce electronically beaten finest malleable silver

foils in India.

8) First in India to bottle natural spring water which has beenawarded NSF certification from FDA, US : a hallmark of qualityand purity

9) First to introduce soda processed with natural spring water

10) First to introduce zero calorie tonic water

11) First to launch 100% herbal mouth freshener - Pass Pass



ABOUT PLANT

This plant is situated in the beautiful valley of kullu manali,being surronded by a beautifulenvironment brings extra charm to the plant. The plant is situated in Raison near the bank of

river beas, it is 20 km from Kullu airport and is 30 km from Manali. This plant has begun its

working in 1999 since then its providing significant role in the market share of the DS group.

This plant has two units which constitute around 100 sq m of area. Mr Salfraaz Husaain is the

unit head of this plant. Unit- 1 is related to the water segment and Unit-2 is related to the

beverage segment. Catch beverages and water comes in 250ml, 500ml, 1000ml and in

1500ml packings.

The plant has been divided into two units

Unit -1 comprise of water segment whose main product is catch mineral water and rohtang,

catch is the main product of this unit which is being sold in north india, as catch is being

targeted for high class hence Delhi NCR constitute its main market. Where as rohtang is

being restricted inside Himachal Pradesh.

Unit- 2 comprise of catch cola, catch lemon and catch orange this is a growing segment of

catch and its manufacture have begun arround 3 years ago. This segment can be threat for the

established ones in future due to its taste and flavour and various health issue which this plant

provides as the management says.



The hierarchy of catch Company is as follows.

This plant has around 175 employees. As being in the hilly area it is providing employment

to the people which is certainly helping them to improve their living and providing them an

alternate career option too

Unit head

Assistancegeneral manager

deputy manager

Executives

Supervisor

Workers



CATCH COLA, LEMON AND ORANGE

These are the innovation of catch in terms of flavour as these are being prepared by the

mixing of various ingredients. These are the latest product of the catch and have started

sharing space with the established one, as it is being new to the market it has miles to go.

WORKING

Working begins with the manufacture of bottles which consists of following stages;

Bottle phase

1) In first stage pre form is being put into microwave. (Pre form is being brought from

somewhere from Chennai)

2) After this the pre form is being moulded and it depends upon the size of the bottle which

is to be prepared.

3) After this the levelling is being done and after that they are being passed from the heater.

4) In next step bottle is being taken to the filler to be filled by the liquid.

Liquid phase

1) There are two syrup containers for the syrup of 5000lt capacity which consists of sugar and other

ingredients. (Sugar for the syrup is being brought from the kangra and Punjab)

2) Water for the purpose is being filtered by the micron filter.

3) After this the water and syrup is being mixed and is being taken to the filler where it is being

filled in the bottle.

Filler

It is a place where liquid solution is being filled in the bottles.

Sensors

After this the bottles is being passed to the sensors where defects in the bottles is being

detected.

Oven



At last the bottles is being passed to oven where the bottles are finally packed.

VISION

To be a leading quality and innovation driven global conglomerate.

MISSION

We are constantly striving to achieve excellence in all our endeavour‘s to create sustainable value for

our stakeholders & the community at large.

OWNERSHIP

This is our company we accept personal responsibilities and accountability to meet business

needs.

PASSION FOR WINNING

We all are leaders in our area of responsibility, with a deep commitment to deliver results.

We are determined to be the best at doing what matters most.

PEOPLE DEVELOPMENT

People are our most important asset. We add value through result driven training , and we

encourage & reward excellence

CONSUMER FOCUS

We have superior understanding of consumer needs and develop products to fulfil them

better.

TEAM WORK



We work together on the principle of mutual trust & transparency in a boundary less

organization. We are intellectually honest in advocating proposals, includes recognizing

risks.

INOVATIONS

Continuous innovations in products & processes is the basic of our success

INTEGRITY

We are committed to the achievements of business success with integrity. We are honest with

consumers, with business partners and with each other.



INTRODUCTION TO THE BOTTLED WATER

INDUSTRY OF INDIA



Bottled Water Industry in India

Water Shortage and Health Awareness Driving Bottled Water Consumption in

India. The Indian packaged water business is estimated at around Rs 2,500 crore

with a growth rate of close to 35 per cent. 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 litres which is comparatively lower than theglobal average of 24 litres. 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.

With over a thousand bottled water producers, the Indian bottled water industry is

big by even international standards. There are more than 200 brands, nearly 80 per

cent of which are local. Most of the small-scale producers sell non-branded

products and serve small markets. In fact,

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 some prosperous rural areas there are

bottled water manufacturers.

In Mumbai analyse show that the consumer, product, channel trends,

key growth areas, target groups and the overall market influences of

aqua vita (which some social activists and even film-makers contend

will trigger off the next war between the haves and the have-nots).

Bottled water or the packaged water category, estimated to be over

Rs 1,500 crore (not including the other smaller regional brands,

which according to the Bureau of Indian Standards are more than

1,800 in number), is "witnessing an unprecedented amount of

action."



In other words, domestic companies Parley, United Breweries,

Tata‘s, DS Foods and multinationals PepsiCo and Coca-Cola, the

world's largest aerated drinks maker, are all "battling for leadership"

in the rapidly growing packaged water market in India. As thingsstand, food and beverages (not to speak of tobacco) account for the

largest consumption categories (40%) in India, which has emerged

as one of the fastest growing economies in the world with about 8%

annual GDP growth.

Bisleri (the current market leader) was the first-of-its-kind packaged

water brand in the country when it was launched in 1967. It has now

made a foray into packaged natural spring water, a category which

has been witnessing exponential growth, in double digit figures, over

the past couple of years. It must also be noted that India was the first

market outside the US to have PepsiCo's Aquafina launched in 1999

when the market was just beginning to grow.

Coca-Cola's $4.1 bn global acquisition of the US-based vitamin

water brand Glaceau (formally known as Energy Brands Inc) to

expand its non-carbonated beverage line made headlines, even as the

Tata group which agreed to sell its 30% stake to Coke by the year

end, had cash registers ringing with its acquisition of mineral water

brand, Himalayan. few years back, Tata Tea acquired the Mount

Everest Mineral Water Company that manufactures the Himalayan

brand of spring water ( a 44% stake for Rs 210 crore), making it the

largest acquisition of a packaged water firm in the domestic market.

In India, the per capita bottled water consumption is still quite low -

less than five litres a year as compared to the global average of 24

litres. However, the total annual bottled water consumption has risen

rapidly in recent times - tripling between 1999 and 2004 - from

about 1.5 billion litres to five billion litres.

It must also be noted that the rise of the Indian bottled water industry



commenced with the economic liberalisation process in 1991. ―The

market was virtually stagnant until 1991, when the demand for

bottled water was less than two million cases a year. Since 1991-

1992, it has not looked back, and the demand in 2004-05 was astaggering 82 million cases."

Bottled water is sold in a variety of packages: pouches and glasses,

330 ml bottles, 500 ml bottles, 1 & 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 80 and Rs110 a litre.

Natural mineral water brands like Himalayan and the indigenous Catch brand

owned by DS Foods Ltd are priced around Rs 20 a litre.

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 Rs10-12 a litre.

The total annual bottled water consumption in India had tripled to billion liters in

2004 from 1.5 billion liters in 1999. Global consumption of bottled water has

crossed the mark of 200 billion liters in 2009.

Bottled water is sold in a variety of packages: pouches and glasses, 330 ml bottles, 500 ml

bottles, 1 & 5-litre bottles and even 20-50-litre bulk water packs.



Government failure to address basic services

Millions of people, both in rural and urban India, suffer from inadequate or no tap water

supply. Even some parts of Mumbai, the country's financial capital, get a mere two hours of

daily water supply. The city's Virar suburb gets 45 minutes. So bottled water is much in

demand by residents - even though the businesses profiting from the sales are thriving from

access to public water sources.

Bottled water fills a void created by government failure to address basic services, Peter

Gleick of the Pacific Institute writes in its World Water report. "In many parts of the world,

tap water is not available or safe to drink," writes . "In these regions, the failure of

governments to provide basic water services has opened the door to private companies and

vendors filling a critical need, albeit at a very high cost to consumers." The institute reasons

that governments should tap into spending on commercial water by consumers to secure

funds to provide safe water at fraction of the cost.

Gigi Kellett, US national director of the Think Outside the Bottle campaign, argues that

demand for bottled water is due to industry creating "a market by casting doubt on the quality

of tap water, when in fact bottled water is subject to far less scrutiny and often comes from

the same source".

Water resources over-exploited

The majority of the bottling plants are dependent on groundwater. They create huge

water stress in the areas where they operate because groundwater is also the main source - in

most places the only source - of drinking water in India.This has created huge conflict

between the community and the bottling plants.

Private companies in India can siphon out, exhaust and export groundwater free because the

groundwater law in the country is archaic and not in tune with the realities of modern

capitalist societies. The existing law says that "the person who owns the land owns the

groundwater beneath". This means that, theoretically, a person can buy one square metre of

land and take all the groundwater of the surrounding areas and the law of land cannot objectto it. This law is the core of the conflict between the community and the companies and the

major reason for making the business of bottled water in the country highly lucrative.

Take for instance the case of Coca-Cola's bottling plant in drought-prone Kala Dera near

Jaipur. Coca-Cola gets its water free except for a tiny cess (for discharging the wastewater) it

pays to the State Pollution Control Board - a little over Rs.5,000 a year during 2000-02 and

Rs.24,246 in 2003. It extracts half a million litres of water every day - at a cost of 14 paise

per 1,000 litres. So, a Rs.10 per litre Kinley water has a raw material cost of just 0.02-0.03

paisa. (It takes about two to three litres of groundwater to make one litre of bottled water.)

On April 7, more than 1,500 villagers defied a police cordon and marched to Coca-Cola'sbottling plant in Mehdiganj village, Varanasi, in Uttar Pradesh state, demanding that the



company immediately shut down its bottling plant. In January, the New Delhi-based Energy

and Resources Institute (TERI) advised Coca-Cola to shut a bottling plant in the drought-

stricken state of Rajasthan. India's Ministry of Water Resources has ranked 80% of ground

water resources in Rajasthan as "over- exploited" and nearly 34% resources as "dark/

critical", the gravest ranking across the country.

Bottled Water: How Safe?

The bottled water industry has spent billions over the past decade to sell you on the idea that

bottled water is better than tap water. Well the short answer is they are both unhealthy. One

of the most ironic parts of the bottled water tragedy is that the water bottling industry gets the

water free, filters it, bottles it and sells it back to us at 1,900% profit. The ironic part is that

tap water is legislated to be 7.0 pH neutral. They first dump a TON of chlorine in the water

to kill off all the bad bacteria, this makes it highly acidic.In India around 100 companies sell an estimated 424 million litres of bottled water valued at

around Rs 200 crore in the country annually . Most bottlers claim that their water is 100 per

cent bacteria-free and contains minerals

that make it tastier and healthier. But is the water in these bottles really safe to drink? Do they

conform to international or national standards?

To find out, the Ahmadabad-based Consumer Education and Research Society (CERS), an

independent non-profit institution with a sophisticated product-testing laboratory, recently

carried out a detailed study on 13 major brands of bottled water available in the country. The

national brands -- Bisleri (separate samples were taken from their units in Bangalore,

Ghaziabad, Calcutta and Baroda) and Bailley (Mumbai and Surat) -- were selected on the

basis of their dominant position in the overall market. Bisil (Mehsana), Golden Eagle

(Chennai), Aquaspa (Mumbai),Saiganga (Ahmednagar), Nirantar (Thane), Trupthi (Chennai)

and Yes (Nadiad) were included because of their regional popularity. To conform to

international standards for such testing, 21 bottles of each brand were

tested in the CERS laboratory against "analytical" and "sensory" parameters as well as for

"microbiological" contamination. To ensure fairness, the results were sent to the individual

companies for their comments.

So how safe is bottled water? Not that safe, says the CERS survey. As many as 10 of the 13

brands had foreign floating objects in clear violation of norms. None of the brands tested wasfree from bacteria although the consolation is that they were not of the harmful kind. Two of

the big brands contained toxic heavy metals much higher than permitted levels. The term

"mineral water" is misleading because our laws do not stipulate the minimum mineral content

level required for water to be labelled as such. All this from a sector that is flourishing

because of the public fear that water supplied by civic bodies is impure.



Growing Prospects for Packaged Drinking Water Industry

Water everywhere, not a CLEAN drop to drink! Who would have thought that there will be aday when sanitation of available water would be more of a concern than availability of wateritself? Hygiene is of great concern to everyone today, and this is evident with the surging risein the consumption of packaged/bottled water. India has 16 percent of the world's population,

2.5 percent of the land mass and 4 percent of the world's water resources. These limited waterresources are depleting rapidly while the demands on them are increasing. Drinking watersupplies in many parts of India are intermittent. Transmission and distribution networks forwater are generally old and badly maintained, and as a result, are deteriorating. India is one of the biggest and most attractive water markets in the world. The boom time for Indian bottledwater industry is to continue- more so because the economics are sound, the bottom line is fatand the Indian government hardly cares for what happens to the nation's water resources.Corporate control over water and water distribution in India is growing rapidly: the packagedwater business is worth $250 million, and it's growing at a huge 40-50% annually. Around1,200 bottling plants and 100 brands of packaged water across the country are battling overthe market, overdrawing groundwater, and robbing local communities of their water

resources and livelihoods. Most multi-national (MNC) companies view India as the next bigmarket with a lot of potential and growth possibility. Several MNCs are waiting in the wingsto expand a $ 287 billion global water market into India. There is a huge market beingexploited by the packaged water industry, and it's growing at 40% per annum. With over athousand bottled water producers, the Indian bottled water industry is big by eveninternational standards. There are more than 200 brands, nearly 80 per cent of which arelocal. Most of the small-scale producers sell non-branded products and serve small markets.In fact, making bottled water is today a cottage industry in the country. There is investmentworthy mid-cap companies in this segment. From being confined to the uppermost echelonsof society, packaged water has now become a commonplace commodity and almost anecessity in metros. After witnessing historic growth in recent years, it has become a Rs

3,000-crore industry, one that is slated to only post healthy growth rates to become a Rs10,000-crore business in just three years, The bulk water industry, or water in 12-, 20- and25-litre packages, has also witnessed a parallel growth of Rs 700-1,000 crore. Basically, themarket can be divided into two segments — the retail consumer market where the pack sizesare 500 ml, one litre, 1.2/1.5/2-litre and five-litre, and the household and institutional market,where the pack size is usually are 20- or 25-litre. The Bureau of Indian Standards (BIS) is thegoverning authority on all quality and production regulations related to natural mineral wateras well as packaged drinking water. The all-India market for packaged water is between $145million (Rs. 8 billion) and $21 million (Rs. 10 billion) and is growing at the rate of nearly 40per cent per annum. Even though it accounts for only 5 percent of the total beverage marketin India, branded bottled water is the fastest growing industry in the beverage sector. Whilethe single largest share in the mineral water market might still belong to an Indian brand --



Parle's $52 million (Rs. 2.5 billion) Bisleri brand has a 40 percent share -- multi-nationalcorporations are not far behind. Nestle and Danone are vying to purchase Bisleri, and Pepsi'sAquafina and Coke's Kinley brands have been extremely successful in edging out many of the small and medium players to buy-outs and exclusive licensing deals. In less than twoyears since its launch, Aquafina has cornered 11 percent of the market and Kinley has almost

a third of the market. News reports indicate that other MNCs like Unilever are also eying themarket. DEMAND OF WATER WOULD NEVER GO DOWN… & WATER WOULD

NEVER BE OUT OF BUSINESS

RESEARCH

METHODOLOGY



RESEARCH METHODOLOGY

Primary research objective

To determine the factors influencing the consumer decision while buying mineral water.

Secondary research objective

To determine the product attributes influencing purchase decision of mineralwater brands.

To determine the reasons for consuming various mineral water brands. To determine the most preferred SKU(quantity) in mineral water category. To determine the most preferred channel in the mineral water category.

Data which research plans to generate

Factors influencing the choice of mineral water over other beverages.

Factors influencing choice of a particular mineral water brand.

Value of Information to Management

This report aims to generate information on various factors influencing consumer decisionwhile purchasing a mineral water. Companies can utilise this information for identifying theawareness levels of their respective brands in the mineral water category. Also companies canevaluate their positioning and promotion strategies based on the factors influencing the

choice of a particular mineral water brand. Companies can also utilise the factors influencingthe choice of SKU for managing their portfolio of different SKUs in the mineral watercategory. The information on factors influencing the choice of a channel can be used to focuson the growing channels and also in managing existing channels. This report also containsbroad based trends on consumer profile, awareness levels, usage patterns and mineral watercategory as a whole which can be utilised to make inferences about the future.

Research Methodology Used



Information sources

Information has been sourced from namely newspapers, trade journals, industry portals

and through access to many databases on net.

Sampling:

It denotes the number of elements to be included in the study. The sample size chosen is 100. The

Questionnaire has been personally filled by the customers in hand to get feedback on the

criticalities.

MMeeaassuurreemmeenntt aanndd SSccaalliinngg PPrroocceedduurreess::

We have used Itemized rating scales like Likert scale in order to rate the choices for purchase

considerations. Also, we have used rank order method wherein, consumer is asked to rank the

products.

Data Collection

The data used in the research is of two types Primary Data and Secondary Data mentioned as

follows:

a. Primary Data:

Primary data has been collected through interviews and survey method. The data is collected

from the customer point of view, and has been checked for the privacy of the respondents or

confidentiality has been maintained wherever required.

b. Secondary data:

Secondary data will be collected from documentary and multiple sources such as:

Internet articles and web references

Internal data of the company

Various trade journals

Data Analysis Procedure

The analysis methods include the following:



Historical Trend Analysis, Judgmental Forecasting and Cause and Effect Analysis. Usage of SPSS

software has been made for the purpose of drawing tables, analyze the data, graphs etc to depict the

picture of the study under consideration.

Research Process

Need and importance of the study

Catch is a very well known brand and has a reputation for its quality products. Yet, the catch

beverages are not able to generate the revenue as they should. This may be due to reasons such as less

Identifying the Problem

Devloping Approach

Research Design

Data Collection

DataAnalaysis

Report



promotion, high cost, hard competition, or any other factor. The investment on promotional schemes

has been increasing tremendously because it has become the most important factor in driving up the

sales volume and trial of new products. These huge investments in trade promotions need to be

effective. Relatively small improvements in promotion effectiveness can significantly impact

performance, and by truly understanding the drivers and market impact of promotions, consumer

products manufacturers can achieve major competitive advantages.

DATA PRESENTATION, ANALYSIS AND INTERPRETATION

Q 1) Are you aware of any of these following Mineral water Brands?

A) Bisleri B) Kinley C) Catch D) Aquafina E) All

Response of the respondents:

Interpretation:

A B C D E

7 4 6 3 62

8.64% 4.94%

7.41%

3.70%

75.31%

Popularity of Brand

Bislery

Kinley

Catch

Aquafina

All brands



The graphical representation of the table shows that out of 82 respondents

76% were aware of all the brands

9% were aware of bisleri

5% aware of only kinley 7% aware of only Catch

4% aware of Aquafina

Q 2) Are you a consumer of a Mineral water?

A) Yes B) No

Response :

A B

79 3

Graphical Representation:

Interpretation:

Consumers of

mineral water

96%

non-consumers

4%

consumers & non cosumers




96% were consumer of mineral water

4% were not consumer of mineral water



Q 3) From where did you come to know about these mineral water brands?

A) TV ads B) Print media C) Shop keeper

Response of the respondents

A B C

67 7 8

Interpretation:


82% come to know about these brands through TV ads

8.5% through Print Media

9.5% through Shopkeeper

81.71%

8.53% 9.76%

Information medium

TV 81.71%

Print Media 8.53%

Shopkeeper 9.76%



Q 4) Have you seen the TV advertisement of mineral water?

A) Yes B) No

Response :

A B

77 5


Interpretation:


94% seen the TV ad of mineral water

6% haven‘t seen the ad.

94%

6%

TV ad

Yes 94%

No 6%



Q 5) What do you see in the ad which influence you to buy the product?

A) Price B) Quantity C) Quality D) Brand E) Other factor

Response:


Interpretation


36.58% were influenced to buy the product on the Price factor

4.87% were on Quantity factor

20.73% were on Quality

19.53% were on brand

18.29% on other factors.

36.58%

4.87%

20.73%19.51% 18.29%

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

Price Quqantity Quality Brand other factors

A B C D E

30 4 17 16 15



20.73%

25.60%

17.01%18.29% 18.29%

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

Brand price Quality Packaging Quantity

Percentage response

Q 6) Rank the following according to the importance you give to them while purchasing Mineral

water.

Brand Price

Quality Packaging

Quantity

Response as ranked first:


Interpretation


21% give importance to the brand of Mineral water while purchaising.

26% for price & 17% go for quality

18% each go for packaging & quantity

Brand Price Quality Packaging Quantity

17 21 14 15 15



Q 7) when do you consume the Mineral water?

A) When you are out of station B) During the journey

C) Rarely D) Daily E) Never

Response:

When out

of station During

journey Rarely Daily Never

35 21 15 8 3

Interpretations


43% use when they are out of station

26% on journey

18% rarely consume

10% consume daily

Rest never consumed

42.68%

25.60%

18.29%

9.76%

3.66%0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

45.00%

out of station Journey rarely daily never

Responce



Q 8) Do you know the difference between mineral water and packaged drinking water?

Yes No

Response:

Yes No

29 53

Interpretation

More than 60% of people do not know the difference between packaged &mineral water.

64.63%

35.37%

No 64.63%

Yes 35.37%



Q 9) Does price of a particular Mineral water brand makes you to shift to others?

Yes No can’t say

Response:


Interpretation


47% change their demand for a brand if they find price to be more than what they want to

pay

38% do not find price as a factor to change to other brand

15% can‘t say .

47.56%

37.80%

14.63%

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

45.00%

50.00%

Yes No Can't say

Yes No Can’t say

39 31 12



Q 10) You prefer only one brand

Brand keeps on changing

If change, why?

A) Price constraints

B) Brand doesn’t matter

C) Non availability of a particular brand

D) New product launched/experiment

E) Others


Interpretation


21% are loyal towards their brand

Rest all change their brands from time to time. Out of which 26% change due to price and

23% due to non-availability of the brand which they want.

20.73%

9.75%

14.63%

23.17%

14.63%

25.60%

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Brand loyal Brand shifts

Price

Brand

non availability

Experiment

Others

Series 1

P e r c e n t a g e r

e s p o n c e

A B C D E

21 12 19 5 8



Q11) What influenced you to purchase the mineral water bottle you last time purchased?

A) Its brand name

B) Display at the shop

C) The company name

D) Its advertisement

E) Packaging

F) Shopkeeper

Response:

A B C D E F

27 16 7 12 5 15


32.92%

19.51%

8.53%

14.63%

6.09%

18.29%

Sales

Its brand name

Display at the shop

The company name

Its advertisement

Other factors

Shopkeeper



Interpretation


33% of the total respondents are influenced by the brand

19% get influenced due to the display at the shops & other 18% are influenced by the

shopkeeper.

14% by advertisement and rest get influenced by other reasons



QUESTIONARE

Q 1) Are you aware of any of these following Mineral water Brands?

A) Bisleri

B) Kinley

C) Catch

D) Aquafina

E) All

Q 2) Are you a consumer of a Mineral water?

A) Yes B) No

Q 3) From where did you come to know about these mineral water brands?

A) TV ads B) Print media C) Shop keeper

Q 4) Have you seen the TV advertisement of Mineral water?

A) Yes B) No

Q 5) What do you see in the ad which influence you to buy the product?

A) Price B) Quantity C) Quality D) Brand E) Other factor

Q 6) Rank the following according to the importance you give to them while purchasing

Mineral water.

Brand Price

Quality Packaging

Quantity



Q 7) when do you consume the Mineral water?

A) When you are out of station

B) During the journey C) Rarely

D) Daily E) Never

Q 8) Do you know the difference between mineral water and packaged drinking water?

Yes No

Q 9) Does price of a particular Mineral water brand makes you to shift to others?

Yes No can‘t say

Q 10) You prefer only one brand

Brand keeps on changing

If changes, why?

A) Price constraints

B) Brand doesn‘t matter

C) Non availability of a particular brand

D) New product launched/experiment

E) Others

Q11) What influenced you to purchase the mineral water bottle you last time purchased?

A) Its brand name

B) Display at the shop

C) The company name

D) Its advertisement

E) Packaging

F) Shopkeeper



Major Competitors

The categories of bottled water in India are Packaged Natural Mineral Water and PackagedDrinking Water .Bottled water industry, colloquially called, the mineral water industry, is asymbol of new life style emerging in India. The packaged drinking water in India, which isestimated at Rs.850 crores with over 200 brands floating in the market, most of which haverestricted territorial distribution. This is a growing market in India as quality consciousnessamong the consumers is on the rise. The bottled water market is growing at a rapid rate of around 20%.At this growth rate, the Rs 7000million per year market is estimated to overtakethe soft drinks market soon. Multinationals, Coca-Cola, Pepsi, Nestle and others are trying tograb a significant share of the market. There are more than 180 brands in the unorganizedsector. The small players account for nearly 19% of the total market. The per capitaconsumption of bottled water in India is less than half a litre per year, compared to 111 litres

in France and 45 litres in the US. These points to the future potential beyond the high growth.

Major Players with their brands include Parle Export which introduced Bisleri in India 25years ago, Parle Agro with Bailley, Godrej Foods with its Golden Valley, Coca-Cola withKinley, PepsiCo with Aquafina, Nestle India with Perrier, Mohan Meakins and SKNBreweries entered the market with Golden Eagle and Penguin mineral water, respectively.Nonetheless, Bisleri and Bailley, both of Parle Origin, enjoy about 50% market share and hasbecome almost generic with the product. The premium bottled water market in India hasbrands like Evian, San Pelligrino, Perrier.

Bisleri, which pioneered the packaged drinking water business in India, catering toconsumers need to have hygienic drinking water while on the move or even at home, isliterally changing its colours and going for a makeover. The brand that was till now marketedas packaged drinking water will now be available in a natural avatar. The natural watersegment, which accounts for about 5% of the total bottled water segment, is expected to growby leaps and founds as health awareness and disposable incomes rise. The bottled waterindustry is worth Rs. 1,000 crore in India and is growing at 40% per annum. It is projected toreach Rs. 5,000 crore by 2010. Thus any entrepreneur may go into this field, will besuccessful which is attracting various people into this industry thus adding to the competition.



Market share-

Bisleri Of Parley Leads the Market with 40% of the Market shares Bisleri‘s turnover has

multiplied more than 20 times over a period of 10 years and the average growth rate has been

around 40% over this period. Presently the Company Has 8 plants & 11 franchisees all over

India. Overwhelming popularity of 'Bisleri' & the fact that they pioneered bottled water in

India, has made them synonymous to Mineral water & a household name.

Kinley Of Coca Cola International Acquires 20-25% of Market Share Followed by Aquafina

of Pepsico Ltd. All the other Brands enjoy 20-25% of Market Share In which catch‘s Market

Share Are estimated to be about .7%

Bisleri (40%)

Kinley (20-25%)

Aquafina (10%)

others (20-25%)

CATCH (<1%)



Target market and major Segments

Catch’s target market has basically been the upper segment. Basically the “high class

society“ the elite group of people. It has created its own segment of consumers which are

concerned with quality of the product rather than its price unlike the buying behavior of theIndian consumers. The company has never compromised with quality of its products and

plans to provide the best quality. Catch brand has always been known for its quality

products and BAIS has also approved it making “Catch” as the only mineral water industry to

be able to match the American standards of quality whereas many major players like Major

Players like Parle Agro with Bailley, Godrej Foods with its Golden Valley, Nestle India with

Perrier, Mohan Meakins and SKN with Golden Eagle and Penguin mineral water,

respectively etc have not been able to do so. During my work at the Mineral water unit of

this Company I was astonished by the efforts that the company put into maintenance of its

quality standards. Each bottled passed through various quality checks to be precise with thequality of their products. Thus when one is buying a product of catch he can be rest assured

that he is buying Quality product as the company never compromises with the Quality.

Major segments are basically those people those who consume the products offered by the

company regularly and those areas where demand is higher than the other area .Use of

mineral water gradually increase in India due so shortage of pure hygienic water and also

increase the knowledge of water because pathogenic micro organisms, which are main reason

of stomach problem. On this reason a part of the society stored so use safe drinking water i.e.

mineral water. There is increase full life, major of the working group has to take travel from

one place to another place, by this time they are now habituate to use mineral water. Major of

the tourists are only habituated to take safe drinking waters. Packed bottled mineral water is

the only main resources in our country to safe drinking water. On that base, it can be

concluded that scope of mineral water will be much more increased in the future. As

suggested by our market research also 42.68 %of people that consume mineral water are

people living out of station thus being the major segment of consumers followed by people

who travel regularly 25.6% as shown below



Marketing Strategy

Market positioning-

Product range

Total range of products offered by the company includes-

Catch mineral water

Catch soda

Catch flavored water in peach , black current and green apple flavor

Catch soft drink in Cola , orange and lemon flavor

And company offers their products in different bottle sizes these includes:

200 ml (24 bottles per pack)




Pricing Strategy-

In any food business, in order to be competitive, one have to be reasonably priced. No

consumer will pay you for the extra fillers. All the world-class packaging and quality that the

company is providing is value addition to the money the consumer pays. But the consumer

will not compensate for these extra efforts that you take. When company sells water, they are

just not selling bottles for storing in the fridge. The company is starting a new concept in

India to crush and throw used bottles and cans.

Low cost product-

Catch has introduced a new mineral water product in the market named “Rohtang”. This

product has been placed at low price (15 Rs) to compete with other players like Bisleri,

Kinley and Aquafina etc in this segment the price of catch mineral water has also been

brought down to Rs 35 to be able to increase the sale of the product. As discussed earlier

also is this report that catch brand is focused on providing quality product and has main

focus on the elite group of the society hence it never competes on price.



Promotion strategies-

The company isn‘t spending a lot on promotion of the mineral water industry. Company is

not that much interested to sell catch mineral water yet and has main focus on its Tobacco

industry which has been promoted heavily, the company has been mostly promoting ―pass

pass‖ whose commercials was seen all through the ongoing Asia cup and also during the half

time breaks and pre & post match shows during the soccer world cup 2010 whereas TV

commercials of catch mineral waters are rarely on air and one may say are seen once in a blue

moon.

Trade promotion-

Catch gives incentives to retailers by offering them free samples and good margin by this

way retailers push their products in the market and for this reason its seen most often in the

market and this aids to the good sale in market because as the experts say ― Jo dikhta hai who

bikta hai‖ means product which is seen more in the market is sold more.

Other than TV commercials and trade promotion various promotion strategies of the

company includes –

Sponsorships with different colleges and school cafes and sponsors their sports

events and other extra curriculum activities to increase the brand awareness.

Free samples are being given in various trade fairs in Himachal, Delhi and NCR

region and banners etc are put up during various festivals etc. Free gifts are also being given under various schemes of this group which are very

popular among household women and children‘s.

Buy two get one free offers

Coupons

Special sale prices

Rebates

Sweepstakes

Give-aways

Distribution Channel-

Catch company makes two type of selling-

Direct selling- In direct selling the company transports their products directly to the

shopkeepers by means of their own transport company owns 18 trucks for this purpose. In

this type of selling the profit margins are more as no margin is to be given to the

distributors.

The company mainly uses direct selling to sell its product to various hotel chains ,restaurants and embassies.



Indirect selling

They have their whole sellers and agencies to cover all areas, the profit

margins lessen due to this but it practically very difficult for the company to

cover all the region by their own so the company through its whole sellers and

distributors ensures that their product is widely available to the customers.

Facilitating the product by infrastructure-

For providing their product in good manner the company has provided infrastructure these

includes-

Vizi coolers

Freezers

Display racks

Advertisement-

Print media

Pos material

TV commercials

Billboards and holdings

The company has not been so much involved in selling it through TV commercials as the

company is not that much interested in selling its product yet hence mostly advertising it via.

Putting up big Billboards and holdings mostly during fairs and festivals.

Pos material means point of sales material this includes posters and stickers display in stores

and different areas.



TARGET MARKET

When the marketing strategy is developed, one has to determine with which customer groupthis would be most effective. For example, a "better value for the money" may be moreappealing to the "family" consumer group while a "wider distribution" would be more

attractive to consumers who travel. Remember that different market strategies may appeal todifferent target markets. Therefore, the collected data ahs to be applied to choose thecombinations that will work best.

The market is defined by different segments. Some examples are:

Geographic: Specialize products to customers who live in certain neighbour hoods orregions, or under particular climates.

Demographic: Direct advertising to families, retired people, or to the occupation of consumers.

Psychographic: Target promotion to the opinions or attitudes of the customers(political or religious, for example).

Product benefits: marketing should be aimed to emphasize the benefits of the productor service that would appeal to consumers who buy for this reason in particular (lowcost or easy access, for example).

Previous customers: those groups of people should be identified and promoted whohave purchased the product before.

The company has very different brand messages for each of their brands. This helps thecustomers in clearly identifying each brand from the other. When company talk of Catch, it‘s clearly indicating food and beverages, and not about tobacco or paan masala or for that matter

paan masala containing tobacco. When it comes to Pass Pass, one‘s dealing with an Indiannatural herbal mouth freshener that has no supari, it‘s a grandmother‘s recipe. A mouthfreshener is completely different from a Rajnigandha. It cannot be the same. Rajnigandha hassupari while Pass Pass has no supari. So consumers should know exactly what they areconsuming. It is a very clear distinction on the basis of content of the product, price pointsand value that one can derive. This is what we mean by brand building — holisticcommunication. Still one may say that water is available everywhere in India. Why shouldanybody buy water then? Because in India, we all are becoming health conscious and whenyou are bothered about your well-being, you should not look at Rs 12, you should look at Rs25. So it is up to you whether you want to invest for that good health. Moreover, company istargeting a different audience altogether with Catch water. The company is targeting

embassies; five-star hotels, resorts and clubs where it matters to be health conscious andpeople are ready to pay the price to be healthy. So it is a niche that the company is looking at.Catch Clear is in great demand and so is Club Soda. These brands are doing well in the nichesegment we had targeted. So target market for these brands is the young and health-consciouspeople who are moving up with a global perspective.



Swot Analysis of the company-

Strengths-

Brand famous for its Quality products.

Recognised by American First in India to bottle natural spring water which has beenawarded NSF certification from FDA, US : a hallmark of qualityand purity.

First to introduce soda processed with natural spring water

Company provides zero calorie tonic water

The only company to sell flavoured mineral water

Mineral water has a natural sweetener and has zero calories

Weakness-

Losses due to transport expenses.

Less market for mineral water industry at the operating area i.e. Himachal Pradesh

Company not that much interested in selling the product yet.

Un-experienced management and unskilled labour

Unavailability of other raw materials other than ―water‖

Company brand not known to people yet in mineral water industry (unlike catch

masala and Pass- pass)

Not much efforts put into advertisement There is no classification called natural spring water; so, everybody calls it mineral

water.



Opportunities-

Huge opportunities in Mineral water industry.

Lesser competition or say lesser or nil Cut throat competition

Company is still new therefore huge growth opportunities

Very less company sell mineral water hence huge growth opportunities for company

in this segment.

Railway, as according to a estimate railways ordered 10,000 cases (of 12 bottles each)

a day in 2009

Threats-

Tata is an emerging threat in packaged mineral water industry with its purchase of ―Himalaya‖ mineral water plant.

Bisleri enjoys the highest market share and is planning to increase it by introducing

flavoured mineral water.

Aggressive selling by Coke and Pepsi

Many companies have realised the market potential and are entering into this business

Local companies are posing a huge threat as they are selling their product at prices

lesser than the market price

Govt policies and change in taxation and other policies



BCG Matrix for the company

STARS

Rajnigandha

Tulsi

Pass pass

Question marks

Catch mineral water

Catch cola

Cash Cows

Catch masala

Dogs



Reasons for lack of interest in mineral water industry-

The packaged drinking water industry is growing and there are huge investment

opportunities in this segment. But still company is not investing that heavily in this segment

and one realises somewhat layback nature of the company in this segment. The reasons

behind these are companies policies and ability to foresee the future it‘s sort of scenario

planning. Unlike any other company the DS group has never issued IPO‘s hence no external

funds are available to the company one may understand the reasons for this attitude by

applying the basic management concepts of product life cycle and BCG matrix

SATURATION

MATURITY

DECLINE

GROWTH

INITIAL PHASE



Product life cycle-

The reason why the company is yet not that much interested in investing in its mineral water

industry quite yet can be explained by the product life cycle concept

The company is flourishing and doing well in its tobacco industry and also in its rubber

industry. Both the companies are in their maturity phase and would soon reach its saturation

stage where companies profits would become stable here the companies market shares might

remain stable but there would be no growth stage which would lead to reduction in profits

and the company will reach its decline stage. Like death is inevitable for every living being

likewise Product life cycle is also a inevitable part of every companies life. Hence as we have

seen earlier in the BCG matrix the company may then sell off its tobacco or rubber business

and invest in the other sectors like mineral water industry. This is all a part of companies

policy and planning for the future if the company was to run for a long period.

It allows company to focus and invest properly in one sector as it‘s really difficult and risky

also for a company to invest heavily into all of its business. The market for mineral water

industry is also developing in India as Indian consumers are becoming more rational in their

approach towards are product and is also becoming more smart and educated. People are now

becoming more conscious about their health hence the market for catch mineral water will

only grow in the future.



PEST ANALYSIS OF CATCH

There are four variables, which we will discuss in our report, they are:

POLITICAL VARIABLES

Political variables Strongly

Effected

Some what

Effected

No Effect

Some what

Effected

Strongly

Effected

Effects of government

regulations &

deregulations

Yes

Effect of

environmental

protection laws if any

Yes

Import and export

regulations

NE

Effect of changing

political conditions

NE

Conclusion Of Political Analysis:

As far as the above table is concerned it could be seen that there are very little chances of

―political variables‖ to effect the catch‘s production and selling behavior.

In the ―political variables‖ most of the things are related to Governmental activities. So, they

don‘t leave any good or bad impact in the Industry of catch.

And there are some exceptional things like: “environmental protection laws” they some

what effect the industry of Catch. From last four-five years Government has ben really very

much conscious about the environment. But after making the adjustments in plants and

applying the proper way of wastage the chances of being affected by the ―protection laws‖

are going to be diminished.

So “political conditions” are over all leave neutral effects on catch‘s industry.



ECONOMICAL VARIABLES

Economical Variables StronglyEffected

Some what

Effected

No Effect

Some what

Effected

StronglyEffected

Do soaring interest rates

make business task any

harder

YES

Any effect due to

inflation

NE

Conclusion Of Economical Analysis

It could be seen that “economical variables” highly affects the Catch‘s resolution. Economic

factors are those actors who effect the production of any industry. So, Catch is not the out of

question. And inflation is also not a good position for any country‘s production point of view.

Inflation may increase cost of production but in case of FMCG products it does not effect that

much as it‘s a essential good if one is thirsty he has to consume water and has no alternate.



SOCIAL VARIABLES

Social variables Strongly

Effected

Some what

Effected

No

Effect

Some what

Effected

Strongly

Effected

Effects of advertisement of

Catch on Public popularity

YES

How will do Catch‘s

contribution affect charity

organizations

YES

Has rising consciousness of natural resources in people

effected your ―save

environment activities.

YES

CONCLUSION OF SOCIAL ANALYSIS

DS Group constantly nurtures its responsibility as a committed corporate citizen, by

regarding Corporate Social Responsibility as an integral part of its Business Objectives.

The Company has been working in Assam and Tripura, on a wide range of CSR programmersranging from education to health and making tribal and ethnic communities self reliant.Under the CSR initiatives the group is renovating local schools, setting up a State level

College and developing heritage properties and construction of an eco lodge to be owned andrun by the tribal community.

While DS Group pursues leadership in its business spheres; it simultaneously endeavors topromote common welfare through multidimensional activities to work towards an all rounddevelopment of the society

DS Group makes constant improvisations in all its manufacturing components, leading to themaking of a perfect product. Be it the sourcing of raw materials, the process of production,or packaging of the final product, R&D remains the crux of DS Philosophy. Quality andInnovation are the two core values that DS Group subsists on.

In its constant effort towards building trust among its audience, the Group works strongly on

the principles of integrity, dedication, resourcefulness and commitment. A wide array of

skills and substantial depth of experience has not only led the Group to maintain its

leadership in its traditional businesses but has also resulted in gradually gaining market in its

relatively nascent forays.



TECHNOLOGICAL VARIABLES

Technological variables Strongly

Effected

Some what

Effected

No

Effect

Some what

Effected

Strongly

Effected

Have business

innovations effectively

promoted your business

YES

Has the government‘s

regulations ever hindered

in importing technical

equipment

YES

Does catch help in

promoting paperless

environment

YES

Conclusion Of Technological Analysis

Of course business innovation leaves highly good impacts in the business of Catch. As catchuse more advance technology in its production process. It will resulted in increment of theirproduction through out the country.

As far as the “governmental hindrances” are concerned the impacts highly bad on catch‘s

production. Ever year when budget in announced government taxes rates always shoot up.This approach of government decreases the profit margin of Catch.

As the catch helping in promoting “paperless environment” .it impacts good, becausecomputers are the basic need of any person now a days. And though it‘s a big industry so it is

promoting the trend of paperless environment. And it is giving the way of other industries tocome to new technologies and into a new world of business. Through computers catch canincrease the efficiency of its business and can have up – to-date data about their productions.



Conclusion

Catch company has never wanted to target masses. Catch spring water is the only natural

spring water available in the market (other than himalya) and . The production takes place in

Manali, which raises the logistics cost. We are looking for more resources. We are not

bothered about the market share as we don‘t perceive other mineral water players in the

market as our competitors. Most people do not understand the difference between spring

water and mineral water. The issue we are facing in the segment is that even the government

does not acknowledge spring water as a separate category. This is why we are not permitted

to write the words ‗spring water‘ on the bottles. But we are happy with the response we have

got so far. The demand for Catch spring water comes from people who value the product and

these constitute mainly institutional sales from hotels and high commissions.

Catch company has never wanted to target masses. Catch spring water is the only natural

spring water avalable in the market (other than himalya) and . The production takes place in

Manali, which raises the logistics cost. We are looking for more resources. We are not

bothered about the market share as we don‘t perceive other mineral water players in the

market as our competitors. Most people do not understand the difference between spring

water and mineral water. The issue we are facing in the segment is that even the government

does not acknowledge spring water as a separate category. This is why we are not permitted

to write the words ‗spring water‘ on the bottles. But we are happy with the response we have

got so far. The demand for Catch spring water comes from people who value the product and

these constitute mainly institutional sales from hotels and high commissions. The company

has world-class packaging units and has adopted world class technology from Canpac

International AG, Switzerland, this increases the shelf life. Thus world-class technology is

the key to enter the food and beverages. In coming years the demand of packaged drinking

water will be increased very rapidly, so there is a huge scope for company to prosper in

coming years.



Appendices-

Economics and the law

The majority of the bottling plants - whether they produce bottled water or soft drinks - aredependent on groundwater. They create huge water stress in the areas where they operatebecause groundwater is also the main source - in most places the only source - of drinkingwater in India. This has created huge conflict between the community and the bottling plants.

Private companies in India can siphon out, exhaust and export groundwater free because thegroundwater law in the country is archaic and not in tune with the realities of moderncapitalist societies.

The existing law says that "the person who owns the land owns the groundwater beneath".This means that, theoretically, a person can buy one square metre of land and take all thegroundwater of the surrounding areas and the law of land cannot object to it. This law is thecore of the conflict between the community and the companies and the major reason formaking the business of bottled water in the country highly lucrative.

Take for instance the case of Coca-Cola's bottling plant in drought-prone Kala Dera nearJaipur. Coca-Cola gets its water free except for a tiny cess (for discharging the wastewater) itpays to the State Pollution Control Board - a little over Rs.5,000 a year during 2000-02 andRs.24,246 in 2003. It extracts half a million litres of water every day - at a cost of 14 paise

per 1,000 litres. So, a Rs.10 per litre Kinley water has a raw material cost of just 0.02-0.03paise. (It takes about two to three litres of groundwater to make one litre of bottled water.)

However, water is not that cheap in the United States, home to Coca-Cola and PepsiCo. Theaverage cost of industrial water in the U.S. was Rs.21 per 1,000 litres in the late 1990s. It wasRs.90/1,000 litres in the United Kingdom and Rs.76/1,000 litres in Canada.

Treatment and purification accounts for the next major cost. Even with the state-of-the-arttreatment system with reverse osmosis and membranes, the cost of treatment is a maximumof 25 paise a litre (Rs.0.25/litre). Therefore, the cost of producing 1 litre of packaged drinkingwater in India, without including the labour cost, is just Rs.0.25. In a nutshell, in

manufacturing bottled water, the major costs are not in the production of treated and purifiedwater but in the packaging and marketing of it.

The cost of a bottle, along with the cap and the carton, is the single biggest cost - betweenRs.2.50 and Rs.3.75 for a one-litre bottle. For water sold in big plastic jars (20-50 litres),which are also reused, or in pouches, this cost is much lower. It is precisely owing to this thatcompanies sell water at even Re.1 a litre in a 20-50 litre jar and still make profits. Labour andestablishment and marketing costs are highly variable and depend on the location and size of companies. Informal discussions with industry members reveal that the gross profit of thisindustry can be as much as between 25 and 50 per cent.



Huge real costs

The reason that companies do not have to bear the cost of the main raw material - water - hasmade this industry highly profitable. But the real cost of the industry is huge.

The cost of fast-depleting groundwater is incalculable and so is the cost of disposal of plasticbottles and pouches. These are hidden costs that society and the environment pay and willpay in the future. The sale of bottled water is therefore not environmentally sound by anystretch of the imagination.

There are much cleaner ways to access clean and healthy water and for this we will have torethink our water paradigm.

Groundwater is the cleanest and cheapest source for all, but we have over-extracted andpolluted it with natural contaminants, agro-chemicals and industrial waste. We will have torecharge and revive our groundwater bodies and for this the existing archaic law mustchange.

Our surface water bodies are in a deplorable condition. We dump our sewage and industrialwaste in rivers and ponds, try to clean them in massive centralised treatment plants and thensupply the water to urban households - to be discharged again as wastewater into the samewater body. This vicious cycle must be cut and stopped. The cost of dirty water is just toogreat for society to bear. Bottled water and domestic treatment systems are a cheap as well asfill-and-forget solution for 30 per cent of the population, but in doing so we have not left anysolution for the 70 per cent of the poor and the marginalised.

Kala Dera Aater Contoversy

Kala Dera, in Rajasthan, was declared a drought area by the Indian Government inSeptember, following this year‘s failed monsoons. But the situation has been worsened by

Coca-Cola‘s operations in the region. Their controversial bottling plant draws on the same

groundwater sources as those used by the local community and farmers, with recent datarevealing that groundwater levels plummeted by 5.83 meters in just one year between May2007 and May 2008 – a huge drop never before witnessed in Kala Dera. Coca-Cola‘s use of the groundwater reaches its peak in the summer months, exactly when water shortages in thecommunity are at their worst.

‗The Coca-Cola Company is denying our fundamental human right to water by continuing toextract groundwater from a rapidly falling aquifer. Every drop of water that Coca-Colaextracts is water taken away from the children, women and men who are unable to meet their

basic water needs, leave alone the farmers who are seeing their crops fail,‘ explains Mahesh

Yogi of the Kala Dera Sangharsh Samiti, a local community group that has been opposing the plant since 2002. ‗Coca-Cola has contributed significantly to the falling water tables and theymust shut down and leave Kala Dera.‘

Last year a Coca-Cola-funded study confirmed the concerns being raised by the community,showing that the company was a significant contributor to the water crisis. But Coke has

refused to follow the study‘s recommendations: to relocate the plant or bring in water fromoutside the area to meet its needs.



Cost Of Producing One Bottle Of Mineral water



BIBLIOGRAPHY

www.DSgroup.com

www.ask.com www.google.com

The Financial Express

www.YahooFinance.com

Companies Old records And Files

http://www.dsgroup.com/

http://www.ask.com/

http://www.google.com/

http://www.yahoofinance.com/

http://www.yahoofinance.com/

http://www.google.com/

http://www.ask.com/

http://www.dsgroup.com/

Documents

36803006 Project on Catch