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FOR THE PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE AWARD OF <<Need to fill yourself>>
PROJECT GUIDE:
SUBMITTED BY:
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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.
Name
Designation
Company name
CERTIFICATE TO ORIGIN
This is to certify that Mr. Gagan Sharma, a student of Post Graduate Degree in MBA(200911), 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 (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)
Dharmapal and Satyapal group Company Profile Stirring Saga Of An Enterprise About The Plant
1.4 1.5
2.
Introduction To Mineral Water Industry Of India 2.1 2.2 2.3 2.4 2.5 Bottled Water Industry In India Govt. Failure To Address Basic Services Water Resources Over Exploited? Bottled water? How Safe? Growing Prospective Of Packaged drinking Water Industry
Research Research Methodology Research Process Need and Importance Of Study Data Presentation , Analysis & Interpretation Major Competitors Target market And Major Segments Marketing Strategies Product Range Pricing Strategy
6.3 6.4 7.
Promotion Strategies Distribution Channel Reasons For Companys Lack Of Interest In Mineral water Industry
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.
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.
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:
The study of the overall working of the management of the company was the first stage. Under this stage the operating plans prepared and the study and analysis of the products being done. This phase also constitute the various surveys done regarding that.
A heat resistant latex Rubber thread plant has been set up at Agartala to produce international quality rubber threads. Latex rubber threads are made from natural rubber applying the most sophisticated European technology. Following close behind is a first-of-its kind Steel sheets plant coming up soon in the North East to produce cold rolled sheets, CRCA and galvanized steel sheets. In line with its vision of diversification, DS Group has entered the fast growing Cement Industry. The Project is located at the Khliehriatsub division of District Jaintia Hills in Meghalaya. The capacity of the upcoming plant will be approximately 1 million tons Per Annum and will have a captive power plant based on coal. This will be one of the largest investments 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 international standards of quality. Every stage of manufacturing is monitored with utmost care and attention. The company also has a widespread distribution network supported by dealers and retailers. The group constantly upgrades its strength through dealer network expansion, up -gradation of production facilities and bringing greater consumer orientation, while maintaining its commitments to high quality, innovation and consumer value carried forward in all its diversification endeavours. 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 programmes ranging 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 anddeveloping heritage properties and construction of an eco lodge to beowned and run by the tribal community. While DS Group pursues leadership in its business spheres; it simultaneously endeavors to promote common welfare through multidimensional activities to work towards an all round development tof the society. DS Group makes constant improvisations in all its manufacturing components, leading to the making of a perfect product. Be it the sourcing of raw materials, the process of production, or packaging ofthe 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.
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 food products 7) First to introduce electronically beaten finest malleable silver foils in India. 8) First in India to bottle natural spring water which has been awarded NSF certification from FDA, US : a hallmark of quality and 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 beautiful environment 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.
Unit head
deputy manager
Executives
Supervisor
Workers
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
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 endeavours 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.
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.
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, Tatas, 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 things stand, 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 19911992, it has not looked back, and the demand in 2004-05 was a staggering 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 20-50litre 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.
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 droughtstricken 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.
Parle's $52 million (Rs. 2.5 billion) Bisleri brand has a 40 percent share -- multi-national corporations are not far behind. Nestle and Danone are vying to purchase Bisleri, and Pepsi's Aquafina 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 two years 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 the market. 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.
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.
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
Identifying the Problem Devloping Approach Research Design Data Collection Data Analaysis 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.
Q 1) Are you aware of any of these following Mineral water Brands? A) Bisleri B) Kinley C) Catch D) Aquafina E) All
Popularity of Brand
8.64% 4.94%
7.41% 3.70%
75.31%
All brands
Interpretation:
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 79
B 3
Graphical Representation:
Interpretation:
The graphical representation of the table shows that out of 82 respondents 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 67
B 7
C 8
Information medium
8.53% 9.76%
Interpretation:
The graphical representation of the table shows that out of 82 respondents 82% come to know about these brands through TV ads 8.5% through Print Media 9.5% through Shopkeeper
Graphical Representation:
TV ad
6%
Yes 94% No 6%
94%
Interpretation:
The graphical representation of the table shows that out of 82 respondents 94% seen the TV ad of mineral water 6% havent seen the ad.
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:
A 30
B 4
C 17
D 16
E 15
Graphical Representation:
36.58%
20.73%
19.51%
18.29%
Interpretation The graphical representation of the table shows that out of 82 respondents 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.
Q 6) Rank the following according to the importance you give to them while purchasing Mineral water. Brand Quality Quantity Response as ranked first: Price Packaging
Brand 17
Price 21
Quality 14
Packaging 15
Quantity 15
Graphical Representation:
30.00% Percentage response
25.00%
20.00%
Interpretation The graphical representation of the table shows that out of 82 respondents 21% give importance to the brand of Mineral water while purchaising. 26% for price & 17% go for quality 18% each go for packaging & quantity
During journey 21
Rarely 15
Daily 8
Never 3
25.60% 10.00% 5.00% 0.00% out of station Journey rarely daily 18.29% 9.76% 3.66% never
Responce
Interpretations
The graphical representation of the table shows that out of 82 respondents 43% use when they are out of station 26% on journey 18% rarely consume 10% consume daily Rest never consumed
Q 8) Do you know the difference between mineral water and packaged drinking water? Yes No
Response:
Yes 29
No 53
35.37%
Interpretation
More than 60% of people do not know the difference between packaged &mineral water.
Q 9) Does price of a particular Mineral water brand makes you to shift to others? cant say
Yes
No
Response:
Yes 39
No 31
Cant say 12
Graphical Representation:
50.00% 45.00% 40.00% 35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00%
47.56% 37.80%
14.63%
Yes
No
Can't say
Interpretation The graphical representation of the table shows that out of 82 respondents 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% cant say .
Q 10) You prefer only one brand Brand keeps on changing If change, why? A) Price constraints B) Brand doesnt matter 21 C) Non availability of a particular brand D) New product launched/experiment E) Others 12 19 5 8 A B C D E
Graphical Representation:
1 0.9
Percentage responce
0.8 0.7 0.6 0.5 0.4 23.17% 0.3 0.2 0.1 0 Brand loyal Brand shifts 20.73% 14.63% 9.75% 14.63% 25.60% Price Brand non availability Experiment Others Series 1
Interpretation
The graphical representation of the table shows that out of 82 respondents 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.
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 27
B 16
C 7
D 12
E 5
F 15
Graphical Representation:
Sales
18.29% 32.92% 6.09% Its brand name Display at the shop The company name Its advertisement 14.63% 19.51% 8.53% 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 3) From where did you come to know about these mineral water brands?
A) TV ads
B) Print media
C) Shop keeper
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 Quality Quantity Price Packaging
A) When you are out of station B) During the journey D) Daily C) Rarely 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? cant say
Yes
No
Q 10) You prefer only one brand Brand keeps on changing If changes, why? A) Price constraints B) Brand doesnt 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 Packaged Drinking Water .Bottled water industry, colloquially called, the mineral water industry, is a symbol of new life style emerging in India. The packaged drinking water in India, which is estimated at Rs.850 crores with over 200 brands floating in the market, most of which have restricted territorial distribution. This is a growing market in India as quality consciousness among 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 overtake the soft drinks market soon. Multinationals, Coca-Cola, Pepsi, Nestle and others are trying to grab a significant share of the market. There are more than 180 brands in the unorganized sector. The small players account for nearly 19% of the total market. The per capita consumption 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 25 years ago, Parle Agro with Bailley, Godrej Foods with its Golden Valley, Coca-Cola with Kinley, PepsiCo with Aquafina, Nestle India with Perrier, Mohan Meakins and SKN Breweries 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 has become almost generic with the product. The premium bottled water market in India has brands like Evian, San Pelligrino, Perrier. Bisleri, which pioneered the packaged drinking water business in India, catering to consumers need to have hygienic drinking water while on the move or even at home, is literally changing its colours and going for a makeover. The brand that was till now marketed as packaged drinking water will now be available in a natural avatar. The natural water segment, which accounts for about 5% of the total bottled water segment, is expected to grow by leaps and founds as health awareness and disposable incomes rise. The bottled water industry is worth Rs. 1,000 crore in India and is growing at 40% per annum. It is projected to reach Rs. 5,000 crore by 2010. Thus any entrepreneur may go into this field, will be successful which is attracting various people into this industry thus adding to the competition.
Market share-
Bisleri (40%) Kinley (20-25%) Aquafina (10%) others (20-25%) CATCH (<1%)
Bisleri Of Parley Leads the Market with 40% of the Market shares Bisleris 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 catchs Market Share Are estimated to be about .7%
Marketing Strategy
Market positioningProduct 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) 500 ml (12 bottles per pack) 1000 ml (12 bottles per pack) 1500 ml (9 bottles per pack)
Pricing StrategyIn 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 productCatch 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 strategiesThe company isnt 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 promotionCatch 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 childrens. Buy two get one free offers Coupons Special sale prices Rebates Sweepstakes Give-aways
Distribution ChannelCatch company makes two type of sellingDirect 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 infrastructureFor providing their product in good manner the company has provided infrastructure these includes Vizi coolers Freezers Display racks
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 group this would be most effective. For example, a "better value for the money" may be more appealing to the "family" consumer group while a "wider distribution" would be more attractive to consumers who travel. Remember that different market strategies may appeal to different target markets. Therefore, the collected data ahs to be applied to choose the combinations 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 or regions, 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 product or service that would appeal to consumers who buy for this reason in particular (low cost or easy access, for example). Previous customers: those groups of people should be identified and promoted who have purchased the product before.
The company has very different brand messages for each of their brands. This helps the customers in clearly identifying each brand from the other. When company talk of Catch, its 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, ones dealing with an Indian natural herbal mouth freshener that has no supari, its a grandmothers recipe. A mouth freshener is completely different from a Rajnigandha. It cannot be the same. Rajnigandha has supari while Pass Pass has no supari. So consumers should know exactly what they are consuming. It is a very clear distinction on the basis of content of the product, price points and value that one can derive. This is what we mean by brand buildingholistic communication. Still one may say that water is available everywhere in India. Why should anybody buy water then? Because in India, we all are becoming health conscious and when you are bothered about your well-being, you should not look at Rs 12, you should look at Rs 25. So it is up to you whether you want to invest for that good health. Moreover, company is targeting 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 and people 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 niche segment we had targeted. So target market for these brands is the young and health-conscious people who are moving up with a global perspective.
Strengths Brand famous for its Quality products. Recognised by American First in India to bottle natural spring water which has been awarded NSF certification from FDA, US : a hallmark of quality and 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
STARS
Question marks
Dogs
Reasons for lack of interest in mineral water industryThe 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 its sort of scenario planning. Unlike any other company the DS group has never issued IPOs 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 cycleThe 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 its 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.
POLITICAL VARIABLES Political variables Strongly Effected Effects of government regulations & deregulations Effect of environmental protection laws if any Import and export regulations Effect of changing political conditions Yes Some what Effected No Effect Some what Effected Yes Strongly Effected
NE
NE
As far as the above table is concerned it could be seen that there are very little chances of political variables to effect the catchs production and selling behavior. In the political variables most of the things are related to Governmental activities. So, they dont 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 catchs industry.
ECONOMICAL VARIABLES
Economical Variables
Strongly Effected
No Effect
Do soaring interest rates make business task any harder Any effect due to inflation NE
Conclusion Of Economical Analysis It could be seen that economical variables highly affects the Catchs 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 countrys production point of view. Inflation may increase cost of production but in case of FMCG products it does not effect that much as its a essential good if one is thirsty he has to consume water and has no alternate.
SOCIAL VARIABLES Social variables Strongly Effected Effects of advertisement of Catch on Public popularity How will do Catchs contribution affect charity organizations Has rising consciousness of natural resources in people effected your save environment activities. YES Some what Effected No Effect Some what Effected Strongly Effected
YES
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 programmers ranging 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 and run by the tribal community. While DS Group pursues leadership in its business spheres; it simultaneously endeavors to promote common welfare through multidimensional activities to work towards an all round development of the society DS Group makes constant improvisations in all its manufacturing components, leading to the making 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 and Innovation 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
No Effect
Strongly Effected
Have business innovations effectively promoted your business Has the governments regulations ever hindered in importing technical equipment Does catch help in promoting paperless environment
YES
YES
YES
Conclusion Of Technological Analysis Of course business innovation leaves highly good impacts in the business of Catch. As catch use more advance technology in its production process. It will resulted in increment of their production through out the country. As far as the governmental hindrances are concerned the impacts highly bad on catchs 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, because computers are the basic need of any person now a days. And though its a big industry so it is promoting the trend of paperless environment. And it is giving the way of other industries to come to new technologies and into a new world of business. Through computers catch can increase 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 dont 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 dont 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.
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