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CHAPTER I Summary of Internship Training 1.1 Introduction: Water is the most important necessity for life. The drinking-water needs for individuals vary depending on the climate, physical activity and the body culture. but for average consumers it is estimated to be about two to four litres per day. The growing number of cases of water borne diseases, increasing water pollution, increasing urbanization, increasing scarcity of pure and safe water etc. have made the bottled water business just like other consumer items. Almost all the major international and national brands water bottles are available in Indian market right from the malls to railway stations, bus stations, grocery stores and even at panwala's shop. Before few years bottle water was considered as the rich people's choice, but now it is penetrated even in rural areas. This is done through the small scale companies were they capture the market share of 20-25 percent. In that Lakshmi Water Products is one of them they are to Provide 100% Customer Satisfaction through Providing Pleasant, Tasty and Safe Drinking Water to the People with Good and Quality around a Clock in order to Create Public Appreciation of Safe Drinking Water. 1.1.1 The Packaged Drinking Water Industry-Overview India is the tenth largest bottled water consumer in the world. In 2002,the Industry had an estimated turnover of Rs.10 billion(Rs.1,000crores).Today it is one of Indias fastest growing industrial sectors. Between 1999and 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 bottledwater manufacturer can be found evev in a one-room shop, in every medium and small city and some prosperous rural areas there are bottled water manufactures. Despite the large number of small producers, this industry is dominated by the big players Parle Bisleri, Coca-Cola, PepsiCo, Parle Agro, Mohan Meakins, SKN Breweries and so on. Parle was the first major Indian company to enter the bottled water market in the country when it introduced Bisleri in India 25 years ago. The total annual bottled water consumption in India. 1.1.2 Segmentation The mineral water market is segmented according to the type of consumers:

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1.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. 2.Domestic Tourists Domestic tourists have switched to mineral water because of safety and hygiene factors. 3.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 is also segmented along pack size: 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 travellers. 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.) DISTRIBUTION 1.1.3 Distribution Channel: Most producers do not sell their goods directly to the final users. Between them stands a set of intermediaries performing a varity of functions. These intermediaries constitute a marketing channel. "Marketing channel are sets of interdependent organizations involved in the process of making a product or service available for use or consumption".- By Phillip Kotler Marketing channel decisions are among the most critical decision facing management. The channel chosen intimately affect all the other marketing decisions. Intermediaries normally achieve superior efficiency in making goods widely available and accessible to target markets. Through their contacts, experience, specialization, and scale of operation, intermediaries usually offer the firm more than it Jar achieve its own.

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According to Stern and El-Ansary Intermediaries smooth the flow of goods and services. This procedure is necessary in order to bridge the discrepancy between the assortment of goods and services generated by the producer and the assortment demanded by the consumer. The discrepancy results from the fact that the manufacturer typically produces a large quantity of a limited variety of goods, whereas consumers usually desire only a limited quantity of a wide variety of goods.

M M M

C C C

Part (a) shows three producers, each using direct marketing to reach three customers. This system requires nine different contacts.

M M M D

C C C

Part (b) shows the three producers working through one distributors, who contacts three customers. This system requires only six contacts. In this way, intermediaries reduce the number of contacts and the work.

M=Manufacturer, C = Customer, D=Distributor

Channel Function And Flows: A Marketing channel performs the work of moving the goods from producers to the consumers. It overcomes the time, place, and possession gaps that separate goods and services from those that need or want them. Member of the marketing channel perform a number of key functions:

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a) They gather information about the potential and current customers, competitors, and other actors and forces in the marketing environment. b) They reach agreement on price and other terms so that transfer of ownership or possession Jar be affected. c) They place order with manufactures. d) They acquire funds to finance investors at different levels in the marketing channel. e) They assume risk connected with carrying out channel work. f) They provide for buyers payment of their bills through banks and other financial institutions. 1.1.4 Level For Distribution: The make-up of the channels of distribution for consumer products depends upon the no, of middlemen used. The simplest channel of distribution is ZERO STAGE marketing channel in which there is direct contact between the producer and the ultimate consumer or user. The one stage marketing channel contains one selling intermediary who may be retailer in case of consumer products as a sales agent or broker in case of industrial products. The two stage marketing channel contains two intermediaries, namely wholesaler and retailers. The third stage marketing channel contains three intermediaries- agent, wholesaler and retailers.

RetailerManufacturer Consumer

Agent

Wholesaler rr Wholesaler

Retailer Retailer

(level of distribution)

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1.1.5 Factors In Choice Of Distribution Channel Distribution channels are an important part of the 'marketing-mix' of any business enterprise. Selection of appropriate distribution channel is very important because several elements of marketing mix like price and promotion are closely interrelated with and interdependent on the distribution channels. A large number of Middlemen are available through which a product Jar be distributed. Each middleman involves some cost that enters into the price of the product that the ultimate consumer has to bear. If the wrong choice of distribution in made, it will lead to increase in the distribution cost, which will lead to either lowering down of profits or increasing the cost of the product to the customer.

Choice of Distribution Channel

cost

Product Price Promotion

Profitability / Cost to the Customer

Thus, the choice of the appropriate channel of distribution is not a simple job. While taking decision in this regard, TOP N TOWN has considered the following factors:1.Market considerations 2.Product consideration 3.Company considerations 4.Distributors considerationsMarket Consideration Product Consideration Company Considerations Distributors Considerations

Considera tionsConsumer or Industrial Market No. of Potential customer Size of order Buying habit of customer Geographical concentration of market Unit Value Product Value Standardized Product Technical Nature Bulk and Weight Perishability Volume of Prduction Financial Resources Experience and competence of Management Service provided by the channel Desire for control of channels Availability of Desired Middlemen Financial Ability Attitude of Middlemen Sales Potential Cost Competitiveness and Legal

CHOICE OF CHANNEL OF DISTRIBUTION

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1.1.6 Intensity Of Market Coverage : The determination of number of middlemen to be employed or the intensity of distribution is an important problem after the choice of the channels of distribution. In this respect, a manufacturer may use any of the three alternatives, namely; Intensive Distribution : A manufacturer following the policy of intensive distribution tries to get maximum exposure for his product by having it sold in every outlet where final customer might look for it. The policy of intensive selling is ordinarily adopted for the marketing of convenience goods such as toothpaste, soap, cosmetics, and food products that the ultimate consumers wish to purchase at the most convenient locations. Selective distribution Selective distribution may be carried on both at the wholesale and retail levels. A manufacturer following selective distribution policy will choose only a few middlemen to handle his roducts. He will select only such middlemen who are likely to sell his products in large quantities. This policy is successfully adopted in case of specialty goods and accessories. Exclusive distribution : Exclusive distribution refers to the agreement between the manufacturer and a middleman under which the manufacturer grants exclusive rights to sell his product in the territory specified in the agreement to the particular middleman. The middleman acting as the exclusive dealer agent . PHYSICAL DISTRIBUTION: Physical distribution of goods and services is an important element of distribution strategy of any firm. Physical distribution strategy is concerned with the actual storage of products after their consumption, and also their transportation to the consumers or actual users.The physical distribution activities, namely storage, transformation and inventory control are performed by the producers and the middlemen. These activities must be performed efficiently because of their heavy weight age in the total costs. The cost of physical distribution rank third in the total cost of goods and are exceeded only by costs of raw material, and labour.Economies achieved in physical distribution of goods will go a longway in reducing total costs and increases profits. 1.1.7 Physical Distribution Decisions: There are several factors that the company has to take into consideration while deciding about the appropriate mode of distribution. 1. Optimum mode of distribution The factors to be considered include the relative costs of the alternative modes of transportation, speed, reliability and appropriateness, keeping in view the product attributes.

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2. Mode of distribution A company may decide to own a fleet of delivery vehicles or appoint an outside transport company. Alternatives are to be evaluated talking into account the cost of capital in case of company owned vehicles and the cost of managing the fleet and the charges to be paid to outside transporter. 3. Location of warehouses One important consideration in the context is the nature of product being sold.This need a comprehensive organizational structure involving a number of company depots, field staff and an elaborate system of physical transportation of delivery vans, either company owned, leased or contracted out to an outside contractor. 4. Inventory decisions: Bulk of the total distribution cost, which generally account for ten to twenty-five percent of the product costs, is incurred on the physical distribution and cost of holding inventories.Thus, very careful attention has to be paid on how much inventory should be maintained, of what items and where. 5. External distribution agency: A firm may decide that because of resource constraints or lack of in- house expertise,it would like to concentrate on production and leave the task of distribution to an outside agency.

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1.1.8 Life Cycle Of The Industry Here 1990 was selected as base year and from 1990 sales in bottled water has increased year by year but not that much level to 2004-05 so this covers under introduction stage of bottled water industry. After increase in awareness among people and known side effects of non purified water, people have moved from tap water to bottled water and this change has increased sales of bottled water in market. Until 1992, the demand for bottled water in India was mostly limited to foreign tourists, corporate meetings, conferences, etc. The introduction of bulk packaging extended the market to new and numerous consumers. In this period firms focus on branding and patenting for maintaining right to produce played an important role. 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 2000-01 33 2001-02 44.5 2002-03 55.6 2003-04 68.15 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2014-15 82 97 112.85 129.85 146.8* 164.45* 265*

Estimated Project(Prediction)

(Source :india stat.com)

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 that the industry came under growth stage. Maintaining existing features and adding new features to product was seen here, broader audience was available for industry product .

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(Source-Advertising express May 2008)

1.1.9 Consumer Habits & Practices 1. Consumers are growing more health conscious and more careful of their drinking habits. 2. Brand loyalty is very low as all the products taste the same so they can just any product which is on the shelf, same as that of soft drinks and fruit beverages. 3. Availability in the chilled form and brand awareness plays a crucial role in purchase decisions. 4. 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 whereas youngsters look in for soft drinks and fruit beverages to quench their thirst. 5. Visibility is another factor that should be taken care 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 taste 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 s 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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1.1.10 Swot Analysis Of The Indian Packaged Drinking Water Industry

Strengths 1. The industry is growing @40% 2. In India the market is huge & untapped 3. Growing awareness among the people about the importance of mineral water Weaknesses 1. 2. 3. 4. 5. Many players entering in the race Any local person can start manufacturing. Rural population is not using the packaged water Not very economical. Quality not properly maintained.

Opportunities 1. Sustained market growth increase in coming years. 2. Literacy rate growing and hence the awareness of safe drinking water to avoid the diseases. 3. Huge population & untapped market. Threats 1. Many substitutes available. 2. Too many players will dilute the market & the profit margin.

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1.2 Profile Of The Company Established in the year 2009, Lakshmi water products is one of the growing reputed manufacturing and supplier of a wide range of Packaged Drinking Water. Besides, they produce mango fruit juice based on the requirement of the needs. Lakshmi water products is concentrated only on the dealer marketing, but not on the direct marketing. Their range of products is procured from reliable and authentic demand of the market. They process these products using cutting edge technology in order to deliver pure and hygienic products. With the support of the dexterous and experienced team of professionals, they are able to provide services related to direct deliver to the dealers. Moreover, they offer customized packaging of our products as per the requirements and to meet their varied expectations. In addition to this, they select the dealers on the basis of their capability of payments made by them. They allow various payment options through cash, cheque and DD on varied payment terms such as D/A and D/P. Owing to the ethical business practices and transparent dealings, we have been able to establish cordial relationships with all dealers. Mission To Provide 100% Customer Satisfaction through Providing Pleasant, Tasty and Safe Drinking Water to the People with Good and Quality around a Clock. To Create Public Appreciation of Safe Drinking Water. Vision Our Vision is a Country Where all People have Access to Safe and Clean Drinking Water. Quality policy a) Lakshmi water products Quality policy is to achieve customer satisfaction and dealers retention by meeting their requirement in terms of stringent quality standards, hygiene and availability. b) To achieve and maintain a level of quality which enhances the Company's reputation among customers. c) We commit to continual improvement in every aspect of our business through better involvement of our employees and suppliers. d) We have created an environment where each employee contributes to all aspects of our business processes. We are committed to strive for continuous improvement to meet customer satisfaction.

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e) Companys Quality policy adheres to check on each stage of production from raw material purchase to finished goods handling. f) Each department meticulously adheres to the prescribed tests and inspections. Also each stage in the production process seeks quality inspection from the Quality Manager to meet the BIS standards on an monthly and yearly basis. g) They have implemented an extensive Quality Management System, supported by management, to establish and maintain appropriate quality objectives, and to support this Quality Policy.

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1.2.1 Company Details

Company Name Address

Lakshmi Water Products. 1/193,Bilichi Post,Periyamathampalayam, Mettupalayam Road,Coimbatore-641 019 E-mail: lakshmiwaterproducts@gmail.com arunkumar1609@gmail.com

Products/services Offered Business Type: Industry Type: No. Of Employees: Year Established: Managing Director: Payment Terms: Payment Mode Shipment Mode Brand Name

Royal choice drinking water and mango fruit Manufacturing/Supplier National 10-22 People 2009 Mr. G. Arun Kumar D/A, D/P Cash, Cheque, DD Road Royal Choice

Salient Features:

Assured quality 100% pure Hygienic Highly nutritious

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1.2.2 Product portfolio They are involved in supplying and trading a qualitative range of Packaged Drinking Water . The packaged drinking water is processed using hi-tech machines and packed in hygienic packaging material. Apart from this, they also produce mango bottled fruit juice based on the requirement bases with the brand name MANGO FRUITY Following are the varieties of products that are manufactured: Package Bottle varieties:

Factory Products 20ltr Bottle 5ltr Bottle 2ltr Bottle 1ltr Bottle ltr Bottle 500ml Bottle water Pouches

20 litre Bottle

They offer a highly purified Distilled Mineral Water with added minerals and oxygen in 20 Liter Jar. Passed under most sophisticated and advanced purification processes, our Distilled Mineral Water is free from any solid or bacterial contamination. Our 20 liter jars are extensively used in homes, offices, schools, hospitals and other establishments. 500ml Mineral Water Bottle

These transparent bottles are made of premium quality plastic that keep the water safe and are easy to dispose. Fresh water remains handy with the help of these bottles during journey. Moreover, these bottles also find use in occasions, functions, meetings, seminars and conferences. As per the requirement, we can deliver these bottles at clients' end within the desired time period.

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And they are engaged in offering a wide range of Packaged Mineral Water (500ml) to our distinguished clients. Thier range is procured from certified and reliable vendors and is available at affordable prices. The products are sprayed with ozone water. We also provide customization services and can alter the bottle sizes as per the clients specification. One litre mineral water

Our company offers a wide range of Mineral Water (1ltr) to our esteemed clients. Made in compliance with international standard, these products are highly appreciated for its hygiene packaging of bottles and quality of mineral water, Apart from this, our range of product go through UV treatment and RO process. We offer these products in various sizes according to customers requirement at industry leading prices.

Water Pouches

We are proficient in offering our clients with Water Pouches in the pack of 250ml. These pouches are extensively used in public places, commercial areas and for personal purposes. The water in these pouches is apt for drinking and rigorously tested on varied parameters. The quality packaging material is used to pack the clean water.

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Mango varities: Mango fruity

500 ml

250 ml

200 ml

Advantages of Packaged Drinking Water:

Safe to consume or use without risk of immediate or long term harm. Useful in preventing dehydration and sustaining health. Consists of high concentrations of dissolved minerals or electrolytes. Cleanses the body and rids it of harmful toxins as well as breakdown waste material. Balances the electrolytes found in the body.

1.2.3 Bureau of International Standards (BIS) Certification offered by BIS under code IS:14543 is an endorsement to the top quality of our product. We have designed our packaging system in such a way that it keeps the water preserved for a quiet long time. Food graded PET & Poly Carbonate materials more than 85% transparency is used for packing Royal choice water as per BIS.

The manufacturing unit has the capacity of producing 500 litres of purified water per day and the manufacturing unit is handled by professionally skilled chemists, micro-biologists and experienced technicians.

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Conformity of packaging materials to Indian standards: The bureau of Indian standards have formulated standards for packaging materials used in contact with drinking water.The plastic materials used should conform to the relevant Indian Standards.The list of the standards is given below: IS:10146-1982 Specification of Polyethylene for its safe use in contact with food stuff and drinking water. IS:10141-1982 Positive list of countries of Polyethylene for its safe use in contact with food stuff and drinking water. IS:12252-1987 PET(Polyethylene terephthalate)/PBT(Polybutadeine terephthalate) for safe use in contact with food stuff and drinking water. IS:12229-1987 Positive list of constituents of PET/PBT for its safe use in contact with food stuff and drinking water. IS:10910-1984 PP and its copolymer for its safe use in contact with food stuff and drinking water. IS:10909-1984 positive list of constitutes of polypropylene in contact with food stuff, pharmaceuticals, and drinking water. IS:10148-1982 Poly Vinyl Chloride and its co-polymer for its safe use in contact with food food stuff and drinking water. IS:10151-1982 Poly Vinyl Chloride and its co-polymer in contact with foodstuffs, pharmaceuticals and drinking water. IS:10142-1989 Styrene polymers for its safe use in contact with food stuff, pharmaceuticals and drinking water.

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IS:10149-1982 Styrene polymers in contact with ood stuff, pharmaceuticals and drinking water. IS:12248-1988 Positive list of constituents of Nylon 6 polymers for its safe use in contact with food stuff and drinking water. IS:11705-1986 EAA co-polymer, positive list of constituents for safe use with food stuff and drinking water. IS:9833-1981 List of pigments and colourants for use in plastic in contact with food stuff and drinking water. The standards basically specify requirements of the basic resin,colours and pigments,catalysts, emplsifying agents ,residual monomers,antioxidants ,other additives and the overall migration.

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1.3 Organisation Chart

Manager Director

PRODUCTION DEPARTMENT

MARKETING DEPARTMENT

QUALITY CONTROLLER

FINANCE DEPARTMENT

PURCHASE DEPARTMENT

Supervisor Chemist Microbiologist Accountant

Technical operator Non-Technical operator

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1.4 Organization Layout

Water purifier area Microlab

Filling water Labeling Tap fitting

Chemical lab office Raw material warhouse Water Tanks Finished products warhouse

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1.5 Purchase Department Operations: The Companys Operations department is responsible for Materials Purchase & Production process. Materials Purchase: It is most vital and initial link to the production cycle. It is responsible for the purchase of the right material at effective cost and of right quality at the right time. The purchase function begins on the release of the Bill of Material (BOM) from the accounts department and ends only after the Packaged Drinking Water is fully bottled and dispatched.Materials purchase

Operations Department

Bill of materials

Production process

Warehouse

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1.6 Production Department Raw materials Lakshmi water Products is located at the site where require amount of water is available. This has made the pumping of water for production as made easy. Production Process The first step for setting up a water purification plant is the analysis of source of water. After the chemical analysis, the specifications of for preliminary water filtration. Water then passes through the dosing pump-I where chlorine is added to kill the germs in the water. After the chlorination, water passes through carbon filter. It helps in the maintenance of proper odor and taste of the water. It also removes chlorine from water.Water is then passes from dosing pump-II, where Sodium Meta Bisulphate is added. It helps in dechlorination of water. Water is filtered next and passes through dosing pump-III, where anti scallant is added. It prevents scaling of membrane from calcium, magnesium and biological growth. Water then passes through reverse osmosis module. This stage of the process makes water clear from all the contaminations and minute particles. Water then passes through dosing pump-IV, where minerals are added for taste development. After this stage, water undergoes Ultra Violet treatment to avoid any contamination from bacteria and other micro organisms. Water then passes through pipe for washing, filling and capping plant. Here water is filled into bottles. After filling bottles are taken into the warehouse or transported to the dealers. The complete process flow diagram is as under. the purification plant are set. In the purification plant, source water is stored in the feed water tank, passes through the sand filter

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Cost of producing 1 Litre Branded bottled drinking water Cap cost Bottle cost Treatment cost Label cost Carbon cost Transportation cost Others Total cost(excluding labour,marketing & tax) Selling cost Rs 0.25 Rs 1.5 Rs 2.5 Rs 0.1 Rs 0.25 Rs 1.5 Rs 0.25 Rs 0.50 Rs 1.0 Rs 0.25 Rs 0.50 Rs 2.85 Rs 4.25 Rs 10 -12

Stages involved in the Plant are mentioned below: Bore well Water Raw Water Storage Tank Chlorine Dosing Raw Water Pump Pressure Sand Filter Activated Carbon Filter Micron Cartridge Filter Antiscalent dosing System High Pressure Pump Reverse Osmosis System 1 micron Filtration 0.5 micron Filtration Storage (SS Tank) Product Water Transfer Pump Storage (SS Tank) Ultra Violet (UV) Filtration Ozonation Water Filling Capping Inspection Labeling Dispatch of Product

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Bore Well Water The main raw material for this product is Raw water. This is taken from our own bore well. And it is transferred from the source to the raw water storage tank. After that this raw water is under gone for testing of basic parameters like 1. Total Dissolved solids 2. Total Suspended Solids 3. Chlorides 4. Calcium and 5. Magnesium etc. Raw water Storage tank This is a storage tank made up of HDPE (Sintex) to store the Raw water which is carried from the source. The capacity of the tank is 5000 litres and 6 nos. ie. 30000liters of total capacity. Raw water pump This pump is used to transfer the raw water from the storage tank to the Pressur sand filter, Activated carbon filter and micron filter. The operating pressure is 3 3.5 Kg/cm2. The flow rate of the pump is about 6000LPH. The delivery size of the pump is about 11/2. Chlorine Dosing System This chlorine dosing system is carried out to remove the bacterial contamination. For this Sodium hypo Chlorite will be dosed through the automatic dosing system. Pressure Sand Filter This contains various grades of sand. This is used to filter the dirt and suspended solids which are present in the raw water. After a certain period this sand bed has to backwashed to remove the dirt and the suspended particles which are filtered during the process. Activated Carbon Filter This contains various grades of sand and Activated carbon. This is used to remove the odour, Free chlorine and colour which are present in the raw water. After a certain period this bed has to backwashed to remove the dust which is filtered during the process. Micron Catridge Filter This is used to filter fine dust which is present in the water. The 5 micron filter is used for this process.

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Anti scalent dosing system This is the system is used to dose the antiscalent chemical to the water. This is the base component of Sodium Hexa Meta phosphate. This is used to avoid the scaling of membranes during the process. High Pressure Pump This is used to pump the water at high pressure to feed the filter water to Reverse Osmosis system. By passing the water at high pressure the separation of pure water and salt water occurs. The operating pressure is about 10 15 kg/cms. The operating pressure is depends upon the nature of the water. The flow rate of the pump is about 6000 LPH. The power consumption of this pump is about 7.5 HP. Reverse Osmosis System This is the main function of the water purification system. The poly amide, spiral wound membranes were used. The membranes are imported. The recovery of this process is about 70 80 % depending upon the quality of the raw water. By passing the water at high pressure the filtration of the pure water and salt water occurs. The salt water were coming out through reject port. The pure water is collected in the central port of the membrane and it is coming out from the product port. After this process the maximum total dissolved solids will be removed. After that this water is under gone for testing of basic parameters like 1.Total Dissolved solids 2. Total Suspended Solids 3. Chlorides 4. Calcium and 5. Magnesium etc. 1 micron and 0.5 micron filtration This is used to filter the pure water as per the ISI norms. Filter cartridges were used the process. For this 1 & 0.5 micron filters were used. Storage tank (SS) This is used to store the purified water before UV treated. The capacity of the tank is 3000 litres. Product water Transfer Pump This is the stainless steel pump which is used to transfer the pure water to the over head tank. The flow rate of this pump is about 3000LPH. The power is about 3 HP> during

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Storage tank (SS) This is used to store the purified water before UV treated. It is kept in the 20 feet above the ground level. This is used to supply the water for UV and filling. The capacity of the tank is 3000 litres. UV (Ultra violet) filtration This is the filtration of the pure water to remove the bacterial contamination. As per the ISI norms we have to install and operate this system. The UV lamp will used to remove the bacterial contamination. Ozonation This is the filtration of the pure water to remove the bacterial contamination. As per the ISI norms we have to install and operate this system. The Ozone generator will used to remove the bacterial contamination. By passing the electric the oxygen will be converted into Ozone. Water filling The empty can will be collected and washed thoroughly and after inspection these cans will be filled with water. Before filling to the cans the water will be tested at the laboratory to analyze the parameters like 1.Total Dissolved solids 2. Total Suspended Solids 3. Chlorides 4. Calcium and 5. Magnesium 6. COD Chemical Oxygen Demand 7. BOD Biological Oxygen Demand etc. Capping After filling of the cans, the caps are fixed for all the cans. Inspection After completion of all the above process, each and every can has to check thoroughly for physical inspection of the product.

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Labelling After filling and capping, the sticker has to be sticked for all cans. This should contains 1. the name of the brand 2. where it is manufactured 3. ISI norms 4. manufactured date 5. expire date Loading and Transportation After completion of the process the cans will be stored and loaded for the dispatch of the product to the dealers and customers.

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Machinery Manufacturing plant:

Fully automatic form, fill & seal machine with gravity filter system to pack various free flow liquids like Milk, Mineral water, Butter milk, Juices, Liquor etc. in polyethylene pouches Features: - High accuracy - Easy to operate - Low power consumption - Filling range : 200ml to 1000ml Speed : Mechanical model : 1200 to 2100 Pouches / hour Pneumatic Model : 2500 to 5000 Pouches / hour Packing Material: Polyethylene film

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1.7 Personnel Department Man power in lakshmi Water Products: Man power planning may be defined as a strategy for the procurement development allocation and utilization of an enterprises human resources. The following table shows the overall strength of permanent employees in the company . Technicians Accountant Supervisor Workers Chemist Microbiologist Packaging Category of employee Technicians Accountant Supervisior Workers Chemist Microbiologist Packaging No. Of employee 2 1 1 2 1 1 2

Recruitment Recruitment is the process of searching for prospective employees and stimulating encouraging them to apply for jobs in an organization. In Lakshmi Water Products, there is no recruitment policy. Recruitment is made based on the requirement of manpower. It depends upon the work load and the order that they receive based on that they select the employee in each sections like filling, labeling, packaging. Recruitment process 1. Locating and developing the sources of required number and type of employees. 2. Identifying the prospective employees with required characteristics. 3. Evaluating the effectiveness of recruitment process.

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Selection: Selection means choosing the right employees at the right time. And also selection is the intention to choose the best qualified and suitable candidates for each unfilled job. The industry selects the employee based on the ducation qualification and their experience level in packing mineral water plant. Selection procedure: Each and every candidates are selected by the managing director.They are being undergone training sections based on that suitable candidates are being selected. Induction: When a new employee joins an organization, he is completely a stranger to the people work place and the work environment. Therefore, he is likely to feel insecure, shy and nervous. In the absence of information and support there is likely to be anxiety and fear in his mind. After the process it is selection, the candidate is inducted about the general details of the industry its business activities, standing orders, quality policies, welfare and safety measures and industrial relations etc. the personnel officers arranges the schedule of induction training which will be sent to the concerned department and training will be given by them. Welfare Facilities Cleanliness: All the plant is being kept clean and free from all dust and from dirt. It is maintained with proper, periodical washing of each part of the plant and tested regularly so that the bacteria does not the area. Environment: Lakshmi water products are located in area where the place is fully filled by pleasant air good atmosphere to work. S.No 1. 2. 3. Timings 9.00am to 1.00pm 1.00pm to 2.00pm 2.00pm to 4.30pm Working Hours Break Working Hours

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1.8 Marketing Department Marketing is the main function of all organisation .It determines the opportunity of the future business. Lakshmi Water Products is beening Marketed with the Brand name ROYAL CHOICE. They follow certain marketing functions like 1. 2. 3. 4. 5. 6. 7. Sales Forecasting Dealers requirement Market Research Sales Analysis Price Analysis Sales Reporting Inventory Maintain ace Royal choice packaged bottle are marketing mainly in Three districts like Salem, trichy, Coimbatore. From these places with the help of dealers the products are distributed to surrounding areas. MARKETING

SALEM

TRICHY

COIMBATORE

Mettur

Pattukkotai

Pollachi

Dharmapuri

Thanjavur

Udmalaipettai

Attur

Asoor

Tirupur Mettupalayam

Namakkal

Neyveli

Karur

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The manufacturing unit in Coimbatore, market their products to nearby places like pollachi, Udumalaipettai, Tirupur, Mettupalayam. These are the some of the main places that the products are being covered. All these are based on the requirement that are demanded by the dealers and the consumer. Marketing Mix According to Philip kotler marketing mix is the mixture of controllable marketing variables tat the firm uses to pursue the sought level of sales in tha targeted market In simple words marketing mix is the combination of four basic elements / ingredients under one head, 4Ps i.e, Product, place, price, and Promotion.

Marketing mix Product promotion

Price

Place

Product: Royal Choice values their customers & therefore have developed 7 pack sizes based on the requirement of the dealers.They presently have 20ltr bottled can, 5ltr bottled can ,2 ltr,1 ltr,1/2 ltr , 500ml bottles and mini water pouches.

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Quality Assurance: ROYAL CHOICE Mineral Water contains minerals such as magnesium sulphate and potassium bicarbonate which are essential minerals for healthy living. They not only maintain the pH balance of the body but also help in keeping you fit and energetic at all times. The casing tube itself is protecting with stainless steel mesh to give a preliminary filtration to the water. Ultra Filtration gives reduction in turbidity and adds sparkle activated carbon purifier to remove color and odour in water. Reverse osmosis membrane has porosity of less than 0.01 micron the process renders water free 0 micro organisms and also reduce dissolved solids. To ensure Royal Choice packaged drinking water is held safe free from contaminations, ultraviolet treatment and ozonisation process is carried out. Ozone is unstable trivalent oxygen, a very powerful bactericide with no side effect, as it disintegrates into oxygen within couple of hours. Sterilization effects of ozonised water continues even after water is packaged, thereby ensuring safeth of Royal choice up its final packing. To ensure high quality of packing materials, products are hand tested before they are dispatched for dealers. 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. Quality checking: Quality is checked by sampling method as a batched test at every stage of manufacturing even quality of bottle is also checked before actually using. Production: 500 ltr bottles per day. Price: Price plays as very important role as it is the only P which helps in getting revenue: Firstly one can explain the factors which affect the pricing decision ie.

Price is directly related to 1. Demand 2. Competition 3. Break-even Point. Secondly, if there is a novel product or almost no competition, one can go for higher price in the beginning, make good profits to face competition and innovations at a later date.

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However since the competition level for packaged drinking water as been in the increasing rate. Lakshmi water products are being undergoing skimming price strategy.i.e., at the beginning stage they are charged less price than the other water local water manufactures.Per bottle 20 litre 5 litre 2 litre 1 litre 500 ml pouches PRICE(in Rs) 60 40 22 15 10 8

Place: Distribution Channels followed by LAKSHMI WATER PRODUCTS are :

Manufacture

Districtc&f

Dealer

Sub Dealer

Shop owners

End user

From the manufacturing plant the finished bottles are send to the District c&f agent. It means carrying and forwarding agent, they mainly deal with collecting the products from the manufacturer and distribute the products to the dealers. Dealers are those who act as the intermediary between the manufacturer and the shop owners. Based on the requirement of the shop owner they collect the products and deliver it. Dealers might directly deal with shop owners or they are again divided into sub-dealers. Subdealer come into existence only when there is a need of covering the large areas. At the end ,from the shop owner it goes to the consumer or to the end users. Promotion: Positioning : Playing Safe Target audience : Health and hygiene conscious people Personality : Guardian, Authoritative, Reliable

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To keep the company humming and profitable work ,its vital to prompt the product to the consumer and deliver the services. Only through constant exposure will alert potential consumers who you are and where you are when they need a sign. Royal choice water bottles are new to the market. They are mainly concentrated in promoting the products to the nearby places. Activities: The only promotional activities done by the Royal Choice is through participating in the Water expo and the exhibition conducted by various organisation. This is the place where all the dealers and the companies meet at one place. Comparing to other promotional activities this is less cost. They have also participated in all types of expo done in national level. Since it is a dealer marketing. It can be easily done through these activites. Some of expo that Royal Choice companies have participated in last 2 years are as follows: WaterExpo 2009- International exhibition& Conference(Mumbai) Mega Water Expo 2009, Chennai, India. WaterExpo-Gujrat,2009. Expo-Conference/water and waste sector 2010.

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1.9 QUALITY CONTROLLER Strongly believing in complete customer satisfaction, they offer products with cent percent quality assurance. They implement effective quality management system throughout the production process on the basis of which, they are able to manufacture standard quality products. Moreover, they have established a team of highly qualified and experienced quality controllers. They contribute in the quality maintenance of products by keeping close eye over the whole process and also conducting tests for fine-finished products. Every stage of production is stringently scrutinized under the supervision of quality controllers. Before the bottle are filled they are sent to lab testing 1. Chemical lab 2. Microbiologist

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1.10 Finance Department For success of every organization depends upon the effective utilization of its available. It is the back bone for the business activity. In fact all other department depends upon Finance department for their successful operation. This department is concerned with the receipt and expenditure of funds. The finance department is fully computerized using the software

like Tally 7.2 version.Objectives: 1. Profit maximization is the main objective of this department. 2. Salary for the staff members wages for the working employees and incentives are calculated and properly issued by the department members. 3. They involve in bills to be Tally and data must be entered. 4. They prepare the Trading A/c, Profit & Loss A/c and Balance Sheet of the Company. 5. They have the function to the bills payable and receive the bills receivable.

6. They involve in the budgeting of the purchase and others.Functions of Accounts Department: 1) Maintaining the records in an orderly manner and chronologically. 2) Submitting records to the management. 3) Checking and passing the bills for payment. 4) Making the payment for wages and salary to staffs and employees. Records Maintained: Cash Book and Petty Cash Book. Bill Record Book. Purchase Book and Purchase Returns Book. Sales Book and Sales Returns Book. Bills Inward Book and Bills Payment Book. Pass Book and General Book.

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1.11 Learning Experience The training experience at Lakshmi water products was very useful and valuable experience for me. We were treated in a very hostile manner, by the employees and also the top level management of my training organization. They were very tender hearted towards the me, and provided every material for the project. Environment was very pleasant for us to carry on our activities, which provided me an opportunity to understand about the activities that taken place internally and externally in our concern. The 6 weeks training at Lakshmi water products also enhanced the knowledge and awareness to meet the challenges and changes that take place in future. Instead of getting into theoretical way I had a chance of doing all work in the practical . It gave me a real feel of managerial skills inside me. It equipped me to cope up with the challenges faced by the manager in competitive international business. This study in the organization helped me to understand the organisations changes and culture and helped me to know the various process in packaged drinking water .

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1.12 Conclusion The objective of study in familiar with an organizational environmental and to get an idea about the function of different departments .It helps me to given an immense knowledge about the day to day working activities of the company. I learnt the entire processes involved in Packaged drinking water, it was really interesting. I thank the organization for providing me such an opportunity to undergo my study in their organization. The overall analysis is indicating that the companys progress has mainly attained through dedication of employees. The effectiveness of its management, their willingness to take advantage of opportunities and face challenges of changing economic picture, this all contributes to the very much improved and sound position of company. This is really appreciable for the devotion and hard work of all the employees of the company.

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CHAPTER II INTRODUCTION OF STUDY 2.1 Introduction: Water is the fountain of all life. Sixty percent of our body weight is made up of it.But the consumption level of mineral water differs based on the age group. One cannot think about life without water. We are blessed with adequate natural resources of water but increasing population, alarming rate of global warming and rapid industrialization and lack of adequate and improved management of the water supply systems resulted in the increased rate of water consumption, wastage of water and deteriorating condition of the water supply networks and the result is, scarcity of water. The Water shortage around the world and particularly in the developing countries has opened new doors for bottled water Industry. Bottled water is sold in a variety of packages right from 200 ml pouches and glasses, to 330 ml bottles, 500 ml bottles, to one-liter bottles and even 20- to 50-litre bulk water packs. In terms of cost the bottled water business in India can be divided broadly into three segments, 1.premium natural mineral water 2.natural mineral water and 3.packaged drinking water It is obvious to find the bottled water manufacturer in metro cities though it might be running only in one room or shop, but its surprising to know that at present in many medium and small villages and even in some of the prosperous rural areas we can find the local manufactures of bottled water and local brand of bottled water laying with the well known brands on the same shelf. Almost all the major international and national brands water bottles penetrated in the Indian market and are available at right from the malls to railway stations to bus stations to multiplexes to grocery stores and even at panwala's shop. It has penetrated so deeply in to market and now its become very common to consume bottled water whereas before few years it was considered as the rich people's choice and fashion to consume bottle water. Thanks to low pricing and aggressive marketing strategies adopted by the multinationals. Some surveys show that truck drivers on highways form a major chunk of bottled water drinkers. Penetration

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in rural areas is another significant factor that is likely to play a key role in the development of the bottled water trade. 2.2 Objectives Of The Study Through this project my objectives has been to understand the following; 1. To know about the consumer preference towards the mineral water. 2. To learn about the various criteria that forces the consumer to change their behavior towards the bottled water. 3. To find out which basis dealers ,prefer buying packaged drinking water. 4. To see whether there is a threat to the mineral water market from water purifiers and soft drinks. 5. To find the dealers view on the mineral water market and to assess the future prospect of the market. 2.3 Scope Of The Study

In this competitive world, the industrial setting is becoming more profit oriented. The relation between the customer and the organisation became highly essential. The lack of customer image and the position about our product in customers mind will lead them to create negative value in market . So it is necessary to find out the negative factors, which exist in the organization, and then only we would suggest appropriate and relevant solution in order to overcome the problem of the organization.

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2.4 Research Methodology 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 intial stage of the project must be completed & then the main part follows. a) Data Collection Method Primary data: These are those data which are collected afresh and for the frist time, and thus happen to be original in character. I have used the questionnaires. 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, pulished data etc. Sample Size: I took 50 consumers 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. Sample Technique: Random sampling technique will be used in this research project. Research Instrument : For doing the survey research, structure questionnaire with closed-ended and open-ended questions were used. Mode of Survey The mode of survey for the dealers and consumers was the filling up of the questionnaires.

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Preparing the Questionnaire 1.As per the requirement of the project & to achieve the objective both consumer of mineral water & dealers of mineral water were studied apart from studying about the domestic packaged drinking water market, Brand Bisleri in detail. 2.For that close and open ended questionnaires for the consumer & for retailer were prepared. Data Processing Daily data will be entered into MS-Excel sheets.After the exhaustion of the specified geographical area this data will be analyzed using simple graphical and tabulation techniques. Analytical Tools After collection of data another work necessary for data collector is to correctly analysis that data. Statistical tools helped me to correctly analyze the data. I used here the software named Ms EXCEL for analysis of the data. I used following statistical tools: 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 X2 test of goodness of fit and is used to test if the deviation between observation (experiment) and hypothesis may be attributed to chance (fluctuation of sampling).X2 also enables us to explain whether or not two attributes are associated or related to each other. b) Statistical Tools 1. Chi-Square Test Procedure: 1) Set up the null hypothesis that there is no significant difference between the observed and expected value. 2) We compute the value of CHI- square by using the formula.CHI-square =X2 ((O+E)2/E)

O-Observed value E-Expected value Degree of freedom=(R-1) (C-1) Level of significance=5

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Alignment of primary and secondary data For the purpose of the market survey, I had designed the research based on primary data.For the collection of primary data, two structured questionnaire for the dealers and the consumers were designed. Secondary data will be used to supplement the primary research and in terms of capacity and profile of package drinking water industry. We will try to confirm the facts of secondary data with the primary study related to growth in the industry and lakshmi water products to be adopted for increasing its sales in the market. Hypothesis to be tested An assumption taken to be true for the purpose of argument or investigation is called a hypothesis. Following are the two types of hypothesis. Null Hypothesis, Ho It is an assumption which the researcher tries to disprove ,reject or nullify. Alternate Hypothesis, Ha It is a statement of what a statistical hypothesis test is test is set up to establish and negate the null hypothesis. Following are the set of hypothesis established to answer various research problems. 1.Frequency of use of mineral water Ho: Larger Proportion of people always use mineral water. Ha: Larger Proportion of people go for an occasional use of mineral water. 2. Choice of soft drink over mineral water Ho: People prefer soft drink when thristy. Ha: People like to have mineral water in a thirst condition. 3. Customer preference in terms of bottle sizes Ho: 5 ltr and 20 ltr bottles of mineral water are the most preferred once, by the population. Ha: 5 ltr and 20 ltr bottles of mineral water are not preferred by the population. 4. Effect of advertising on purchase Ho: Advertisement doesnt affect purchase decision of Mineral Water. Ha: Avertisement affects purchase decision of Mineral Water.

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2.5 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 website and magazines 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 However in spite of these limitations all efforts have been put to make the report correct, genuine, and fulfilling the objectives of the reports.

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III CHAPTER REVIEW OF LITERATURE 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 Manufacturing Process Processing and Quality Assurance 1. The casing tube itself is protected with stainless steel mesh to give a preliminary filtration to the water. 2. Ultra filtration gives water reduction in turbidity and adds sparkle. 3. Activated carbon purifier to remove color and odour in water. 4. Reverse osmosis membrane has porosity of less than 0.01 micron the process renders water free of microorganisms and also reduce dissolved solids. 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.

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Sterilization effect of ionized water continues even after water is packaged, thereby ensuring safety of Mineral Water up its final packaging. 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 its 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, 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. Market Categorisation The market initially had only one SKU of 1 litre was followed a by a number of smaller and bigger SKUs. Based on these SKUs we can divide the entire market into two segments: 1. Retail consumption market 2. Household & institutional consumption market The market can also be divided on the basis of the price at which this bottled water is available into three categories: a) Super premium mineral water b) Premium local natural mineral water c) Popular or plain bottled water

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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. India To Face Severe Water Crisis In The Future: The per capita water availability in india is projected to declne to about 1,140 cubic meters per year in 2050 from 1820 cubic meters per year recorded in 2001 according to the Intergovernmental Panel on Climate Change (IPCC). India will see a severe water crsis in 20 years if the government doesnt change its ways and clashes are already taking place because the resource is so scarce. This was the warning by the World Bank way back in 2005. Estimates reveal that by 2020, Indias demand for water will exceed all sources of apply. All these reports point to just one thing for us now. That we should be on serving water and be judicious in its use. If water is wasted today then it is our future generation which will suffer because of it. So everyone needs to make a point from now to save water in any way they can. If we cannot do that then the future is very clear. Water will be one of the most expensive commodities and everyone will have to buy water shelling out huge amount of money for the same. The implications could be worse than these if action is not taken now. The fastest growth in the consumption of bottled water in the world has been recorded in India according to a new study conducted by the US based earth policy institute. It even questions the rising thrist for bottled water with consumption tripling in india over the past five years. The Big Boom: The bottle water industry has tin-doubted been one of the fastest growing business sectors in India. The way it has grown since the early 1990s is indeed astounding. And the high growth rate is expected to continue into future. Starling from a small base, the growth was exponential up to early years of current century. Thereafter, there was a decline in the pace of growth, and now witness a comparatively linear grwth, but nonetheless fairly rapid.

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The bottle water industry is reported to have growth nine-fold over the past decade from around 15 million cases in 1997-98 to an estimated 130 million eases in 2007 -08 (I case=48 liters) this traction to a compounded annual growth rate 24% er annum. In same year, the growth rate has been as high as 40%. The market size is further projectd to increase to 265 million cases by the year 2014-15 this works out of a projected growth rate of nearly 11% a year. While one has crossed the exponential growth phase experienced during the industrys nascent period, there is lot of untapped potential and the industry would continue to experience double digit growth rates for several years to come. In terms of value, the Indian bottled water segment is estimated currently at Rs.3000cr per annum and expected to double within the next seven years. The international players currently see India as the destination with a lot of growth possibility. India already the tenth largest bottled water consumer in the world. The demand has been further fueled due to increasing income and changing lifestyle of the urban middle and upper classes of the population. It is also triggered by advertising and widespread distribution of the product.

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CHAPTER IV COMPANY OVERVIEW Lakshmi water products is one of the growing reputed manufacturing and supplier of a wide range of Packaged Drinking Water Established in the year 2009. Besides, they produce mango fruit juice based on the requirement of the needs. Lakshmi water products is concentrated only on the dealer marketing, but not on the direct marketing. Package Bottle varieties: Factory products: 20ltr Bottle 5ltr Bottle 2ltr Bottle 1ltr Bottle 1/2ltr Bottle 500ml Bottle Water pouches

Mango fruity varities: 500ml 250ml 200ml Various departments Purchase department: The purchase function begins on the release of the Bill of Material (BOM) from the accounts department and ends only after the Packaged Drinking Water is fully bottled and dispatched. Marketing Department: Marketing functions like 8. Sales Forecasting 9. Dealers requirement 10. Market Research 11. Sales Analysis 12. Price Analysis 13. Sales Reporting 14. Inventory Maintain ace

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Human Resources Department: Recruitment Selection Induction Welfare Facilities Finance Department: 1)Maintaining the records in an orderly manner and chronologically. 2) Submitting records to the management. 3) Checking and passing the bills for payment. 4) Making the payment for wages and salary to staffs and employees. Quality Controller: Strongly believing in complete customer satisfaction, they offer products with cent percent quality assurance. They implement effective quality management system throughout the production process on the basis of which, they are able to manufacture standard quality products.

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CHAPTER V Analysis and interpretation Consumer related survey Table 5. 1: Number of respondents using mineral water frequently Mineral water usage Always Often Sometimes Never Source: Primary Data No of respondents 18 12 15 5 Percentage 36 24 30 10

40 35 30 25 20 15 10 5 0

Percentage

36 24

30 10

Percentage

Always

Often

Sometimes

Never

Respondents

Interpretation: Ho: Larger Proportion of people always use mineral water. According to the survey it was seen that 18% of the users responded as using mineral water always while 12% agreed to use if it often. 15% of respondents said they used mineral water sometimes while there are 5% of the respondents who said they never use packaged drinking water. As per the Chi-square test statistics value is 7.83 exceeds the critical value of 7.82 hence null hypothesis is rejected hence it can be concluded that user go for an occasional use of the mineral water .

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Table 5.2: Respondents choice amongst mineral water and soft drinks Mineral water usage Always Often Sometimes Never Source: Primary Data No of respondents 20 10 12 8 Percentage 40% 20% 24% 16%

40% 40% 35% 30% Percentage 25% 20% 15% 10% 5% 0% Always Often Sometimes Never Respondents 20% 16% 24%

Interpretation: Ho: People prefer soft drink when thirsty. 20% respondents agreed to always choosing mineral water over the soft drinks when thirsty while 10% chose it offen. As the Chi-square test statistics value 6.99 lesser than the critical value 7.82 hence null hypothesis is accepted. Hence it can be concluded that 20% of user always go in for mineral water when they are thirsty.

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Table 5.3: Customer preference in terms of bottle sizes Bottle Size 500ml 1lit 5lit 20lit Source: Primary Data No of respondents 13 20 7 10 Percentage 26% 40% 14% 20%

40% 35% 30% 25% 20% 15% 10% 5% 0%

Percentage

40% 26% 14% 20% Percentage

500ml

1lit

5lit

20lit

Respondents

Interpretation: Ho: 5 ltr and 20 ltr bottles of mineral water are the most preferred ones, by the population. According to the survey 13% of the respondents preferred to buy 500ml bottles, 20% preferred 1ltr bottles while 7% & 10% preferred 5ltr and 20ltr respectively. As the Chi-square test statistics value 7.83 exceeds the critical value of 7.82 hence null hypothesis is rejected. Hence it can be concluded that the 5 ltr and 20 ltr bottles are usually preferred only during special occasions such as marriage and Birthday parties.

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Table 5.4: Price of mineral water Price Yes No Sources : Primary Data No of Respondents 22 28 Percentage 44% 56%

60% 50% Percentage 40% 30% 20% 10% 0% Yes Respondents No 44% 56% Percentage

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

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Table 5.5: Affect of advertising on purchase Advertisement Strongly Agree Agree Strongly Disagree Disagree Indifferent Sources : Primary Data No of respondents 5 16 14 10 5 Percentage 10% 32% 28% 20% 20%

40% Percentage 20% 0% Strongly Agree 10%

32%

28% 20% 20%

Agree

Strongly Disagree Disagree Respondents

Percentage Indifferent

Interpretation: Ho: Advertisement doesnt affect purchase decision of Mineral Water 16% agreed to the fact that advertising of packaged drinking water affected their purchase while 5% strongly agree, 10% of the respondents disagreed, 14% strongly disagreed, while 5% consumers said they were indifferent towards it. As the Chi-square test statistics 8.2 is lesser purchase decision of Mineral Water. than the critical value of 9.49 hence null hypothesis is accepted. Hence it can be concluded that advertisements doesnt affects the

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Table 5.6: Basis of selling a particular packaged Drinking Water Brand Brand Effects Demand by the customer Schemes offered by the companies Advertisement More margins Sources : Primary Data Respondents 18 6 14 12 Percentage 36% 12% 28% 24%

40% Percentage 30% 20% 10% 0% Demand by the customer Advertisement Schemes offered by the companies More margins 36% 12% 28% 24%

Respondent

Interpretation: Ho: Demand of the customer is the main reason for selling of a particular brand of drinking water 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. As the Chi-square test statistics 6.33 which is less than the critical value of 7.82 hence null 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. packaged

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Table 5.7: Increase in bottled water

Consumers view No of respondents Percentage Sources : Primary Data

Health consciousness 22 44

Advertisement 19 38

Scarcity of water 7 14

Others 2 4

50 45 40 35 30 25 20 15 10 5 0

44 38

Percentage

14 4 Health consciousness Advertisement Scarcity of water Others

Respondents

Interpretation: Ho: Tremendous growth in mineral water segment is not owing to increased health consciousness and scarcity of portable drinking water amongst the population. According to observation 22% of bottled water increases due to health conscious, 7% say it is due to scarcity of drinking water and 19% say it is due to increased advertisements while 2% say there may be other reasons like higher living standards, more disposable income etc. 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 ,the growth in mineral water segment is due to increased in health consciousness and scarcity of portable drinking water amongst the population.

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Table 5.8: Availability Of Packaged Water Brand Of Your Choice

Good availability Yes No Cant say Sources : Primary Data

No of respondents 13 27 10

Percentage 26% 54% 20%

60% 50% Percentage 40% 30% 20% 10% 0% Yes No Respondents Cant say 26% 20% Percentage 54%

Interpretation: 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.

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Table 5.9: Future prospects of mineral water market

Prediction No of response Percentage

Excellent 22 44%

Good 10 20%

Average 16 32%

Poor 8 16%

Sources : Primary Data

45% 40% 35% Percentage 30% 25% 20% 15% 10% 5% 0% Respondents 20% 16% Percentage 44% 32%

Interpretation: 22% of the total respondents said that the future prospects of the mineral water industry is excellent, 10 % said it was good while 16% gave it an average & 8 % said it had a poor future.

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Table: 5.10 Decision to buy a particular Brand Customer preference No of respondent Percentage Brand Image 12 24% Advertising 14 28% Price 15 30% Availability 5 10% size/Package 4 8%

Sources : Primary Data

30% 25% Percentage 20% 15% 10% 5% 0%

28% 24%

30%

10%

8%

Brand Image Advertising

Price Respondents

Availability size/Package

Interpretation: 12 % of people purchase packaged bottles due to brand image, 14% is based on advertising remaining 15%, 5%, 4% is based on price, availability/size. Highest respondents purchase mineral water only based on price.

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Table 5.11: Mineral water is much more hygienic than normal water Respondents view No of Respondents Percentage Sources : Primary Data Yes 38 76% No 12 24%

80% 70% 60% Percentage 50% 40% 30% 20% 10% 0% Yes Respondents No 24% 76% Percentage

Interpretation: 38 % people believed that purchasing drinking water is more hygienic than the normal drinking water. And it is more taster than the normal tap water.

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Table 5.12: Price the companies are charging, is worth the product

Respondents view No of Respondents Percentage Sources : Primary Data

Yes 21 42%

No 29 58%

60% 50% Percentage 40% 30% 20% 10% 0% Yes Respondents No 42% 58% Percentage

Interpretation: According to customers view price is too high and the customer are not satisfied.

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Table 5.13: Advertising of this product has any effect on your purchase

Respondents view No of Respondents Percentage Sources : Primary Data

Yes 31 62%

No 29 38%

70% 60% Percentage 50% 40% 30% 20% 10% 0% Yes Respondents No 38% Percentage 62%

Interpretation: Advertisement is also the main cause that effects the purchase of mineral water brand. Customer awareness is more required to carry out the business.

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Table 5.14: What is the response of royal choice mineral water in the market

prediction No of response Percentage

Fair 22 44%

Good 11 22%

Average 13 26%

Very good 3 6%

Excellent 1 2%

Sources : Primary Data

45% 40% 35% 30% 25% 20% 15% 10% 5% 0%

44%

Percentage

22%

26%

6%

2% Excellent

Fair

Good

Average Respondents

Very good

Interpretation: At persent royal choice mineral water running in the fair stage (i.e) 22% of the customer think that the market for royal choice is good whereas 11% is in good, 13% is at average and remaining 3% and 1% are very good and excellent.

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Table 5.15: Changes would the customer like to see in our Brand Customer preferences Respondents Percentage Sources : Primary Data Good packing 10 20% Increase MRP 25 50% Increase service 15 30%

50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0%

Percentage

50% 20% 30% Percentage

Good packing

Increase MRP Repondents

Increase service

Interpretation: 25 % of respondents wants to make changes in MRP,15% to increase service and remaining 10 % needs a good package. These changes in goods might increase their company market image.

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Table 5.16 Kind of service that they get from company Customer preferences Respondents Percentage Regular visit of Sales executive 13 26 On Time Delivery 15 30 Credit period 20 40 All of the above 2 4

Sources : Primary Data

40 35 30 Percentage 25 20 15 10 5 0 Regular visit of Sales executive On Time Delivery Credit period 4 All of the above 26 30 40 Percentage

Respondent

Interpretation: In most of the retail shops 13% there will be a regular visit of sales executives ,15% there will be on the time delivery of goods,20 credit period extension time and only 2 % of respondents says that all the services are available.

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Table 5.17 Is royal choice mineral water in your store

Respondents view No of Respondents Percentage Sources : Primary Data

Yes 44 88

No 6 12

90 80 70 60 50 40 30 20 10 0

Percentage

88 Percentage

12 Yes Respondents No

INTERPRETATION: 44% of stores there is a presence of royal choice mineral water were 6% there is a absents of this brand.

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CHAPTER VI FINDINGS, SUGGESTIONS AND CONCLUSION 6.1 Findings: 1. Brand awareness of the consumers is mainly more about the top, more publicized brands which they also brought more. 2. Consumers answer to which size of bottle they prefer was 500 ml and 1ltr bottles. 3. Majority consumer also agreed that advertisements affected their purchase decision of a particular packaged drnking water brand. 4. With the increasing health consciousness of the consumers they prefer packaged drinking water more to tap water due to hygienic considerations. 5. Regarding the growth and future prospect of the mineral water market nearly all of the dealers were optimistic and ranked it as a very rapidly growing excellent market. 6.2 Suggestions: 1. Advertisement to build the brand image that will provide the required ground to establish the authenticity to the product. 2. Flavoured water without sugar and artificial ingredients could be introduced so that the consumers also has a healthy substitute to the soft drinks. 3. Bulk water delivery to home at no additional cost. 4. POP (Point of Purchase) displaying the cost of water at Rs. 2 per mlt as the perception of the people is that mineral water cost Rs. 10 per Lt. 5. Awareness programs at health club , schools & Nursing homes. 6. To win over the consumer belief and faith over the genuity of the product. 7. Display of hot and cold dispensers and bottles at places like hotels, clubs and airports Where upper class group visits as they are the potential customers. Place like departmental stores, petrol pumps and super bazaars can also be considered. 8. Mineral water in polybags like milk be more convenient to the consumers. 9. The company should organise camps at various part of the city also road show to bring about the difference between mineral water and filter/purified water and to tell the people how mineral water is more hygienic than filtered water/purified water. 10. To aware people the cost benefit analysis to the customer of how the mineral water would cost less and benefit more, because people using purifier system cost too much. 11. From the study it has been found that majority of the people does not have any brand preference. The company should establish brand image in mineral water with the help of advertisement & better service to the customers

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12. Buy two bottles get one' like offers can also be introduced by big brands. 13. Pirated or copied variants of branded water to be stopped. 14. Plastic quality of bottle can be improved as specially middle class segment don't want to throw plastic bottles after water consumption and like the same bottle to be used in future or domestic purposes. The redressal forum should be located zone wise and the company should see the zonal head reports every day regarding the grievances of the customers. The company should make proper arrangements to get away with the grievances of the consumers as soon as possible.

6.3 Conclusion a) 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 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. b) Market has seen a tremendous growth from the early nineties & now it is increasing by 40% every year so one easily say there is great potential in the mineral water market. c) 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.

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6.4 Scope For Future Work Future Plans: Royal Choice water bottle is the new brand to the market. They at present concentrated to capture the customer minds towards this products they are also engaged in making new changes in the packaged bottle. Some of the future plans of the Lakshmi Water Products are as follows 1. New pack sizes in bottles and cups. 2. Increase the distribution network between the manufacture and the end-user. 3. Strengthen presence in traditionally weak areas by setting up 4. Lakshmi Water Products planning to diversify to increase fruit juice business. 5. The company plans to cover large area and also in the neighbouring places.. 6. The company planning to place their products in large national and international exhibition inorder to expand their business.