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CHAPTER 1

ORGANIZATION PROFILE

Organization Name : GAYATHRI MINERAL WATERS (P) LTD
Established from : 2011
Residential address : 462/1 Kalipalayam,
Vellamadai (po)
Vaiyampalayam (via)
Coimbatore 641 010
Proprietor : Mrs. Kavitha Vidhyasagar
No of employees : 20 [including staff]
Product category : Can waters,bottle waters
Phone no : 0422 3229899
E-mail : gayathriminerals@yahoo.com


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1.1 INTRODUCTION

Mans legendary quest for fresh water has led today to the convenience of bottle
water to meet the fast-paced life of modern peoples. Ours is the blue planet, and the hallmark
of life on Earth is water. But where did this colorless, odorless liquid first come from.
10000 BC: Bottled water is born as mankind transports water in primitive vessels and skins
from natural spring sources to their dwellings.
218 BC: Hannibal rests his troops and slakes their thirst at source Perrier.
58 BC: Aqueduct delivered spring water refreshes Nero.
1002: Leif Erickson restocks his longboat with New World natural spring water.
1215: Signers of the Magna Carta toast to liberty with delicious water from local springs.
1805: Napoleon keeps his spring water close at hand.
1845: Poland spring founded when summer visitors to the Maine resort wanted to return home
with the famed spring water.
1863: Perrier first bottled by decree of Napoleon ill for the good of France.

Only three decades ago few knew about mineral or spring water, and fewer still
thought that one day most Canadians would spend a lot of money to buy it! Water forms an
essential part of every human being. After air, water is the most important necessity for life.
Water plays a number of functions for the body. It serves as the bodys transportation system,
it acts as a lubricant, it regulates the body temperature etc .The eulogy for water is an
unending thing. In fact, more than 2/3rd of the human body is made of water. The importance
of water for human body can be well accessed from the fact that if the amount of water is our
body is reduced by just 1-2%, we feel very thirsty. If its reduced by 5%, our skin will shrink
and we will have difficulty moving our muscles and if its reduced by 10%, we will die.


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Moreover with this commodity being a human necessity it makes best sense to
do business in. As a normal human being requires on an average needs 2-3 litres of
water everyday and world population is more than obn (growing at 2-3% annually),
the business opportunity is humongous and the potential is largely untapped .Since ancient
time people have used water from mineral spring, especially hot springs, for bathing due to its
supposed therapeutic value for rheumatism, arthritis, skin diseases, and various other
ailments. Depending on the temperature of the water, the location, the altitude, and the
climate at the spring, it can be used to cure different ailments. This started the trend of using
mineral water for drinking purpose to exploit the therapeutic value of the water. This trend
started gaining momentum in mid 1970sand since then large quantities of bottled water from
mineral springs in France and other European countries are exported every year.

The bottled water industry is estimated to be a whopping Rs 1600 crore business. It
has grown at a rate of 38-40% annually over the past four years. Initially pitched at the well-
heeled, bottled mineral water brands like the French-manufactured Dan one were promoted at
clubs, fitness centers, cinemas, department stores, malls, ice-cream parlors, cafes and retail
sports outlets, besides restaurants, hotels and supermarkets, with a price tag of Rs 70 for a 1
liter bottle. Other brands later began pitching for the larger middle class and lower-middle
class markets.

While the term bottled water is widely used, the term packaged water is perhaps more
accurate. Water sold in countries for consumption can come in cans, laminated boxes and
even plastic bags. However, bottled water is most commonly sold in glass or disposable
plastic bottles. Bottled water also comes in various sizes from single servings to large carboys
holding up to 80 liters. Depending on the climate, physical activity and culture, the drinking-
water needs for individuals vary, but for high consumers it is estimated to be about two liters
per day for a 60 kg person and one liter per day for a 10 kg child. Drinking-water may be
contaminated by a range of chemical, microbial and physical hazards that could pose risks to
health if they are present at high levels. Examples of chemical hazards include lead, arsenic
and benzene.

Microbial hazards, include bacteria, viruses and parasites, such asVibrio choleras,
hepatitis A virus, and Cryptosporidium partum, respectively. Physical hazards include glass
chips and metal fragments. Because of the large number of possible hazards in drinking-
water, the development of standards for drinking-water requires significant resources and
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expertise, which many countries are unable to afford. Fortunately, guidance is available at the
international level. The World Health Organization (WHO) publishes Guidelines for
Drinking-water Quality which many countries use as the basis to establish their own national
standards. The Gu4idelines represent a scientific assessment of the risks to health
from biological and chemical constituents of drinking-water and of the effectiveness
of associated control measures.

WHO recommends that social, economic and environmental factors be taken into
account through a risk-benefit approach when adapting the Guideline values to national
standard. As the WHO Guidelines for Drinking-water Quality are meant to be the scientific
point of departure for standards development, including bottled water, actual standards will
sometimes vary from the Guidelines.

These facts about water added to 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 quite lucrative. In addition with getting
pure drinking water from municipal taps in cities and towns becoming a luxury the scenario
has become so lucrative in business sense that the opportunity is being misused by a number
of companies especially in our country.

Public Opinion and Acceptance
Globally almost every country is accepting the "bottled water culture." Millions of
people get parts or all of their daily water values from bottled water. A study done by Green
Nature suggests that over half of Americans drink bottled water, spending 240-10,000 times
more than tap water. At the University of Wisconsin-Eau Claire, where I attend college, the
"bottled water culture" definitely is in full swing. One cannot glance at a random student or
faculty member book bag without finding a bottle of water stowed inside. Drinking bottled
water is essentially a part of our culture today. We can look at any local, national or
international sporting event and see the prevalence of bottled water.

Apparently regular tap water in a bottle or cup has slowly begun to be looked down
upon. Although many individuals will carry a reusable water bottle such as a Nalgene, most
bottled water containers are thrown away after just one use. This may be due to the
convenience of bottled water, as it is almost more readily available than tap water.

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6

BOTTLED WATER IN INDIA
The overall packaged bottled water in India is estimated to touch the Rs 10,000 crore
mark in the 2012-13 fiscal, growing at a compound annual growth rate (CAGR) of 19%, says
a new report by Ikon Marketing Consultants. Presently, this market is estimated at Rs 8,000
crore, and could touch Rs15,000 crore by 2015, the report adds. While Bisleri continues as the
top brand with a 36% share among national players, Coca-Cola's Kinley follows with 25%
share, followed by Aquafina at 15%. Other smaller brands include Parle Agro's Bailley,
Kingfisher and McDowells No. 1, according to the report. The global bottled water market,
which saw an increase of 40-45% over the past five years, is currently valued at close to US$
85-90.billion.

The domestic market is split between three sets of players -- national brands with a
pan India presence worth around Rs 4,000 crore, local brands manufactured by registered
plants but restricted to regions estimated to have a combined turnover of Rs 2,400 crore and
unorganized local brands estimated at Rs 1,600 crore. The report estimates that there are over
2,500 brands

The non-traditional category, or bulk packs, (with over 5 liter capacity) is growing
rapidly, and has a current share of over 40% share. "The rising trend of bulk water
consumption in homes and institutional segments will pave the way for bulk water packs to
acquire half of the total bottled water market within next four-five years," the report adds.
According to a national-level study, making bottled water is today a cottage industry in the
country. Leave alone the metros, where a bottled-water manufacturer can be found even in a
one-room shop, in every medium and small city and even rural areas there are bottled water
manufacturers.

While India ranks in the top 10 largest bottled water consumers in the world, its per
capita per annum consumption of bottled water is estimated to be five litres which is
comparatively lower than the global average of 24 litres. Today it is one of India's fastest
growing industrial sectors. Between 1999 and 2004, the Indian bottled water market grew at a
compound annual growth rate (CAGR) of 25 per cent - the highest in the world. The total
annual bottled water consumption in India had tripled to 5 billion liters in 2004 from 1.5
billion liters in 1999. Global consumption of bottled water was nearing 200 billion liters in
2006.

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8

TOP PLAYERS IN THE MARKET
The market leader is Bisleri International, which boasts a 40 per cent share. It is
followed by Coca- Cocas Kinley (around 25 per cent) and PepsiCos Aquafina (around 10
per cent). The top players in bottled water industry in India are the major international giants
like Coca cola, Pepsi, Nestle and noticeable presence of national players like Mount Everest,
Manikchand, Kingfisher, Mohan Meakins, SKN Breweries , Indian Railways so on. With
increasing competition, this sector will register a robust growth in 2010, predict industry
analysts.

To take on rivals in this sector, PepsiCo India is drawing up a fresh game plan which
includes investment in capacity enhancement, packaging initiatives and below-the-line
activities to pump up volumes in the over-crowded category. Meanwhile, swadeshi major
Parle Agro is extending the manufacturing facility for Bailley from 29 to 60 plants this year.
While swadeshi major Bisleri International is beefing up its distribution, manufacturing and
marketing operations, Coca-Cola India is sharpening its focus on packaging initiatives
of Kinley to woo new consumes. In essence, the packaged water industry in India will soon
witness a major tussle between swadeshi and videshi players to gain market and mind share.

The western region accounts for 40 per cent of the market and the eastern region just 10.
However, the bottling plants are concentrated in the southern region - of the approximately
1,200 bottling water plants in India, 600 are in Tamil Nadu. But a major problem is southern
India, especially Tamil Nadu, is water starved.

Top multinational players such as Coca-Cola and PepsiCo have been trying for the
past decade to capture the Indian bottled water market. Today they have captured a significant
portion of it. However, Parle Bisleri continues to hold 40 per cent of the market share. Kinley
and Aquafina are fast catching up, with Kinley holding 20-25 per cent of the market and
Aquafina approximately 10 per cent. The rest, including the smaller players, have 20-25 % of
the market share.Millions of people, both in rural and urban India, suffer from inadequate or
no tap water supply. Even some parts of Mumbai, the country's financial capital, get a mere
two hours of daily water supply. The city's Virar suburb gets 45 minutes. So bottled water is
much in demand by residents - even though the businesses profiting from the sales
are thriving from access to public water source.
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Bottled water fills a void created by government failure to address basic services,
Peter Gleick of the Pacific Institute writes in its World Water report. "In many parts of the
world, tap water is not available or safe to drink," writes. "In these regions, the failure of
governments to provide basic water services has opened the door to private companies and
vendors filling a critical need, albeit at a very high cost to consumers." The institute reasons
that governments should tap into spending on commercial water by consumers to secure funds
to provide safe water.

Bottled water has been treated by distillation, reverse osmosis, or other suitable
process and that meets the definition of "purified water". The bottled water treatments
include:
Distillation. In this process, water is turned into a vapor. Since minerals are too heavy to
vaporize, they are left behind, and the vapors are condensed into water again.

Reverse osmosis. Water is forced through membranes to remove minerals in the water.

Absolute 1 micron filtration. Water flows through filters that remove particles larger than
one micron in size, such as "Cryptosporidium", a parasitic protozoan.

Ozonation. Bottlers of all types of waters typically use ozone gas, an antimicrobial agent, to
disinfect the water instead of chlorine, since chlorine can leave residual taste and odor to the
water.
The bottled water industry has spent billions over the past decade to sell you on the idea
that bottled water is better than tap water. Well the short answer is they are both unhealthy.
One of the most ironic parts of the bottled water tragedy is that the water bottling industry
gets the water free, filters it, bottles it and sells it back to us at 1,900% profit. The ironic part
is that tap water is legislated to be 7.0 pH neutral. They first dump a TON of cholrine in the
water to kill off all the bad bacteria, this makes it highly acidic.

In India around 100 companies sell an estimated 424 million litres of bottled water
valued at around Rs 200 crore in the country annually. Most bottlers claim that their water is
100 per cent bacteria-free, safe, tastier and healthier. But is the water in these bottles really
safe to drink? Do they conform to international or national standards.

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To find out, the Ahmedabad-based Consumer Education and Research Society (CERS),
an independent non-profit institution with a sophisticated product-testing laboratory, recently
carried out a detailed study on 13 major brands of bottled water available in the country. The
national brands -- Bisleri (separate samples were taken from their units in Bangalore,
Ghaziabad, Calcutta and Baroda) and Bailley (Mumbai and Surat) -- were selected on the
basis of their dominant position in the overall market. Bisil (Mehsana), Golden Eagle
(Chennai), Aquaspa (Mumbai),Saiganga (Ahmednagar), Nirantar (Thane), Trupthi (Chennai)
and Yes (Nadiad) were included because of their regional popularity. To conform to
international standards for such testing, 21 bottles of each brand were tested in the CERS
laboratory against "analytical" and "sensory" parameters as well as for "microbiological"
contamination.To ensure fairness, the results were sent to the individual companies for their
comments. So how safe is bottled water? Not that safe, says the CERS survey. As many as
10 of the 13 brands.had foreign floating objects in clear violation of norms. Again during a
surprise inspection by the health committee chairman Manjunatha Reddy and team at two
mineral water units in the Bangalore on January 11, 2011, it was found that mineral water
production unit owners were bottling bore well water. The units were also illegally using
several branded labels on the bottles to market the water. The standing committee visited a
mineral water production unit called AM Enterprises and found the owner selling water
without an ISI mark from the Bureau of India Standards. He was found mixing mineral water
with bore well water and selling it in cans to the public.

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BOTTLED WATER LAW IN INDIA
The term "mineral water" is misleading because our laws do not stipulate the
minimum mineral content level required for water to be labelled as such. Ahmedabad-based
Consumer Education and Research Society (CERS), an independent non-profit institution
with a sophisticated product-testing laboratory, recently carried out a detailed study on 13
major brands of bottled water available in the country. As many as 10 of the 13 brands had
foreign floating objects in clear violation of norms found in the survey. The CERS study
indicates that there is an urgent need to revise standards for bottled water.

1.2 MISSION AND VISION OF THE COMPANY

Mission

To be the worlds premier consumer products company focused on convenient foods and beverages.
We seek to produce healthy financial rewards to investors as we provide opportunities for
growth and enrichment to our employees, our business partners and the communities in which
we operate. And in everything we do, we strive for honesty, fairness and integrity.

Vision

Our vision is put into action through programs and a focus on environmental
stewardship, activities to benefit society, and a commitment to build shareholder value by
making a truly sustainable company.

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1.3 ORGANIZATION CHART





















DIRECTORS
MANAGING DIRECTOR
MANAGER
GENERAL MANAGER
ADMINSTRATIVE OFFICER
ACCOUNTANT
OFFICE ASSISTANT
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CHAPTER 2

MICRO AND MACRO ANALYSIS

2.1 Micro Environmental Factors

Micro Environmental Factors is also known as internal environmental factors. They
include factors which are within or close to the company that have a direct impact on the
organisation strategy as follow
i.Top management
ii.Other functions, such as finance and accounting, Research and Development,
manufacturing and purchasing iii.Suppliers
iv.Marketing intermediaries
v.Customers
vi.Competitors
vii.Public

2.2 Macro Environmental Factors
These factors are also known as external environmental factors which relates to larger
forces beyond the company's control. They include the following factors.

1. The company

Top management, finance, research and development, purchasing, operations and accounting
make the internal environment of any company. Top management sets the company's mission,
objectives and polices. Marketing managers must make decisions according to the strategy
and plans made by top management.

2. Customers

Organizations survive on the basis of meeting customer needs and wants and providing
benefits for their customers. Failure to do so will result in a failed business strategy.

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3. Employees

Employing the correct staff and keeping staff motivated is an essential part of an
organization's strategic planning process. Training and development play a critical role in
achieving a competitive edge.

4. Suppliers

Suppliers of Water firm provide minerals and other materials they need to carry out their
business activities. A supplier's behavior will directly impact the business it supplies. If a
supplier provides a poor service this could increase timescales or lower product quality.

5. Competitors

Competitor analysis and monitoring is essential if an organization is to maintain or improve
its position within the market. If a business is unaware of its competitors activities they will
find it very.


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2.3 SWOT ANALYSIS

Strength
Brands image
Financially sound
Distribution channel/coverage
Technology advancement
Quality
Skilled management
Price competitive
Personnel aspect
Market expertise
International component
High promotional activities
Weakness
Low market share
High operating cost
Many competitors
Opportunities
Capture the market
New areas
Market potential
Brand awareness
Increase in investment
Threats
Competitors

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CHAPTER 3
FUNCTIONAL AREAS

1. Production
2. Purchase
3. Sales Department.
4. HR Department.
5. Quality Control.
6. Finance Department.
7. Administration.


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3.1. PRODUCTION

The first process in production is the raw water is taken from the bore well. Then the water
is sent to the purification center. The purification is carried out through R.O. system. The
water which taken from the bore is stored in the 50,000 liter raw water tank. There are two
raw water tanks. Then the water is sent to the R.O. system process.

In the R.O. system process the water is sent through various filters like carbon filter, sand
filter, micron filters. Then it is treated with chemicals to kill the bacteria and germs in the
water. Then the water is sent through four levels of filters with a speed of 500km to 1000km.
then the water is stored in the S.S. tank for filling process. This is the process of water
production.
Then next process is raw materials converted into finished goods. The performs which are
bought will be in the form of test tube. The performs are heated using heater machine which is
specially designed for it.Then the heated performs are blown using the blowing machine, it is
blown with the help of air pressure. The pressure is produced with the help of air compressor
.and the bottles are kept in the stock section.

Next process is the final process in production. The bottles which are blown are sent through
the machine. The machine has a design to hold the bottle. The bottle goes through various
processes. First is cleaned automatically in the machine. It is cleaned using the mineral water.
And the water is filled in the bottles as soon as the water is filled bottles is closed using the
caps. And the bottles come out from the machine and labels are worn in it.

The bottles are loaded in the boxes and the boxes are kept in the dispatch section. Like wise
bottle filling, can filling process also done. 20ltr cans are cleaned and filled using the can
filling machine. With the help of bottle filling machine per hour nearly 100 to 120 boxes can
be produced. And with the help of can filling machine per hour more than 120 cans can be
produced. The cost of bottle filling machine is 40lakhs and the cost of can filling machine is
10lakh.

The other processes which are carried out are, Water test and Air pollution test, chemical
test, Micro Biological Test, Chemical Parameters Tests had been undergone in waters.


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PRODUCTION PROCESS


1. Perfiltration

With this first filter, that says
Goodbye to tiny-sized particles in water.




2. Polishing Filter
Any smaller particle that gets through
this first round of polishing filter
will catch them.



3. High-intensity Light

At this stage, a burst of high-intensit
light imparts energy to the water stream
to protect against naturally occurring
organic substances in the water.






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4. Reverse Osmosis (R.O.)

Reverse Osmosis uses pressure and
a hyperfilter to remove over 98% of the
Total Dissolved Solids (TDS) from our water.




5. Charcoal Filtration

Time to isolate those trace elements
that can affect the taste of water by
using a charcoal filter.




6. Polishing Filter

Heres where every H & O gets a nice polish.
Not with a soft cloth. But with a polishing
filter thats designed to make your water
crystal clear.




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7. Ozonation

Companys final seals in the purity.
By passing purified oxygen molecules
Are brought together as assurance that
Unwanted particles are kept away.
After theyve done their job, they revert
Back to double oxygen molecules ensuring
You enjoy pure water and perfect taste
With every bottle of Varna.


8. Purity Guaranteed

By this process the purity is
guaranteed for our customers



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3.2. PURCHASE SECTION
According to the orders received, purchases on raw materials are done. Many items are
purchased every day. The followings are the main purchases made by the organization.
Pre forms (300ml, 500ml, 1 Lit, 2 Lit).
Pet Caps, B.T.Caps
Handles/ Sleeves, B.T.Sticker, Cello Tape,
Labels, Ink Cartridge, Ink Reservoirs,
Carton Boxes.
Chemicals for Testing.





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3.3. MARKETING DEPARTMENT
Sale of the goods are done through the intermediaries like stockiest, super stockiest, dealers,
sub dealers, etc..
These intermediaries are appointed zonal wise like Salem, Tirupur , Erode, Madurai ,
Tuticorin Thiruchendur, etc..
There are more than 40 stockiest, super stockiest, dealers, sub dealers, etc.
Appointed Zonal wise: - Super Stockiest
Stockiest
Dealers
Sub-Dealers
Marketers
In Marketing Section: - Sales Executives
Sales Representatives
Co-ordinates.

The Sales Representatives, every day visit in their allotted area, and collect the reports from
the dealers, and sub-dealers area and they have the duty of getting the orders from them. And
also help the dealers to promote the sales in their area. They will report to Sales Manager with
the weekly reports, TA/DA (travel allowance and daily allowance).
In every Saturday evening all have to assemble in Head office, with their reports. And their
performance is discussed in the meeting.
Every day morning all are reported to Sale Manager where they are on that day duties. Every
day evening also they will report to their Sales Executives.

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PRICE LIST
VARNA PACKAGED DRINKING WATER


20 Litre each can filling charge Rs.18.00


Details 1 ltr
Each
1 ltr
15 Nos
2 ltr
each
2 ltr
9 Nos.
500 ml
Each
500 ml.
24 Nos.

300 ml
each
300 Ml
50 Nos
Stockiest
Rate
8.00 120.00 13.00 117.00 5.00 120.00 4.50 225.00
Margin 2.00 30.00 3.00 27.00 1.00 24.00 0.50 25.00
Retailer
Rate
10.00 150.00 16.00 144.00 6.00 144.00 5.00 250.00
Retailer
Margin
6.00 90.00 9.00 81.00 2.00 48.00 2.00 100.00
MRP 16.00 240.00 25.00 225.00 8.00 192.00 7.00 350.00
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Terms and Conditions
1. All purchase orders should be accompanied with Demand Draft favouring Gayathri
Mineral Waters Private Limited payable at Coimbatore.
2 .New price list rates mentioned above are Ex-factory.
3. The above said rates are only for full Truck Loads, One Full Truck Load 600 Cases (1
Ltr:-15 Nos, 2 Ltr -9 Nos. 300ML: -50 Nos. 500ML:24 Nos, in Each Box/case Mixed-600
Cases one truck Load Order
4. All damages at the time of unloading should be informed to the office immediately.
5. Accumulated damaged stocks will not be accepted.
6. Delivery within 3 days from the date of receipt of purchase order with Demand Draft.
7. Any change of rates will be intimated in advance which arises due to increase in price of
raw materials.
8. If the agreed target is not completed, another new stockiest will be Considered.
Goods once sold cannot be taken back.
All Disputes subject to Coimbatore Jurisdiction only.

PRODUCT STRATEGIES

Differential Advantage
As the brand name of varna from pepsi is itself a differential advantage of the product so it
needs nothing else to convert the consumer interest into sales of the product. The pepsi co.
Never compromise on its produce standards, and the quality is taken as the core value for
companys product. Quality is never compromised in the pepsi co. For their products.

Future Plan For Varna
The company has introduced the flavored water in abroad but not yet in coimbatore,
company has its intention to introduce the new flavored water in coimbatore, and the
company is working in this regard as it needs a good market for the flavored water because
people are hesitant to buy such water in coimbatore. And this also needs a good marketing.

Expiry Of Product
Expiry of the bottled water is judged by the quality assurance department of the varna. The
expired water is disposed-off properly because the expiry is printed on the label of the plastic
bottle.
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Making Of Water
In the making stage of the varna, the water is properly boiled and sterilized on the state of
the art plants, and then some minerals and health nutrition are added in this to make it healthy
and pure enough and free from germs drinking water.

Production Time
The minimum time is advised to complete a single bottle to follow the economy of state.
The time required to complete a single pack of varna is approximately 20 seconds.

Measures Before Dispatch
Some measures are taken to maintain the quality of the product varna, as it is kept in factory
for 24 hours before dispatching it to the market to avoid any complaints from the consumer.
So its necessary to keep the fresh stock in factory for safer marketing.

Quality Inspection
The quality inspection teams not only check the ready water from the factory and from the
stores but also from the market as they dont want the supply of unhealthy water to the
consumer as it destroys their credibility.

Brand Name
The brand name is itself a bigger advertisement for the varna, as its backed by the strong
brand pepsi co. The name varna has two parts. Aqua means water and fina is derived from the
word fine. That means fina water.

Packing Of Product
The label of the bottled water is so attractive that its made of very fine colors, and packing
material used in this bottle is also very safe as its closure is made of plastic, and its closure is
wrapped by another plastic seal which protects the germs to enter into the bottle. Also the
blue fine color wrapper is placed on the bottle to make it attractive enough for the consumer.


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PRICE STRATEGY

Price comparison
The varna compares its price with nestl pure water as they have good market place in
the country, nestle are the strong competitors of the varna, so the varna sets its price according
to the market situation and also the price is based on the activity of its strong competitor
nestle. Varna does not compare its price with coca colas kinley as the have not as much
market share as the nestle or varna itself has.

price matching
Varna try to match with the nestls price strategies, as varna lower downs its price if the
nestl is going down in its pricing techniques and vice versa.

Target market
Target market of varna is off course the urban areas as in rural areas no one is interested to
drink the bottled water as they think that they have canals and tube wells to suck their own
clean and clear water beneath the surface of land. So the marketing in rural areas is almost
10% as compared to the urban areas.

No intentions to increase the price
Varna has no intentions to increase the prices of their bottled water in the near future even it
would be a top of the mind product in future.

Pricing policy
Ongoing rate price
500 ml rs. 20
1500ml rs.40


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PROMOTION STRATEGY

Separate department
Varna has its separate department for the marketing activities, as it sees the and experience
the market, conduct market survey, takes feedback from the people, prints brochures for the
people at roads, give samples to people free of cost, takes public opinions through door to
door survey, get informed by public interest through mailing and try to adopt every possible
action through which it gets the maximum information about the consumer trends.

Sponsorships
Varna plays an important roll in sponsoring the events in educational institutes like schools,
universities and other institutions. Also it conducts its own programs and event, cultural
shows, television backhand promotions, sponsors cricket matches and other games, give a
necessary contribution to the event held by other organizers. Such promotional activities are
at the top of the advertisement techniques.

Media
Both the print and electronic media is used for the varnas promotions. All the
advertisements are run on the televisions. Also they advertise on the web. Although these
promotions can increase their cost but good strategic decisions keep the balance between cost
and promotions.

Promotional budgets limits
Obviously like any other company, the varna also bear some limits in its promotional
budgets, in the initial stages when the varna was launched in coimbatore, heavy promotions
were required, because when the company launches a new product it has to spend more on its
promotional activities to make the consumer more familiar with the product in comparison
with others. So the same was happened with varna and the excessive rates were adjusted in
the other brands of pepsico. And now also the varna has its yearly budget for promotional
activities.


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PLACEMENT / DISTRIBUTION STRATEGIES

Main distributors
The main distributors of varna are the riaz bottlers avinashi, they are providing the full time
services to the avinashi and surroundings by distributing the varna water.

No. Of other outlets
There are more than 150 outlets of varna in avinashi, qusoor and karamadai which are
providing the bottled water to the consumer for drinking purpose.

Placement time
The company retains its whole fresh stock in the premises of the production plant for 24
hours to avoid any complaints after distribution to the retailers. And the maximum time to
retain the bottled water in factory is 3 to 4 weeks, all the stock is distributed in avinashi and
surroundings within this time frame.

Cities of distribution
Varna is supplying its product in major cities of coimbatore like annur, saravanampatti,
karamadai, avinashi, and thirupur and is aiming to make its distribution more intensive to the
other cities of the country by introducing it as safe and healthy drinking water. Domestically
varna has covered the following cities:


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MARKET & DEMAND ASPECTS

Earlier bottled drinking water was privileged to high class, foreign tourist and highly
health conscious people but the present decade has witnessed increasing popularity among
average consumers, increasing living standards, disposable income, education and awareness
among the consumers domestic and foreign tourist, sophisticated business houses and offices
has increased rapidly the sales of bottled water in recent years.

The growing demand for bottled water speaks volumes of the scarcity of clean
drinking water and the quality of tap water. It has become an icon of healthy lifestyle
emerging in India. Selling safety i.e. pure and simple water has now become one of the
fastest growing industries in India despite the harsh truth it is build on the foundation of bad
governance, inequality and obvious exploitation. However, bottled water provides the 3
distance advantages of convenient packing, consistent quality and is ubiquitous.

This particular industry in India has never looked back after the economic
liberalization process of 1991-92. In fact 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.

According to Bureau of Indian Standards (BIS), there are 1200 bottling plants (out of
which 600 are in the state of Tamilnadu) and 200 brands of packed drinking water across the
country (nearly 80% of which are local) hitting over the markets which thoroughly signifies
the market is big, even by international standards.

These are boom time for the Indian bottled water industry more so because the
economics are sound. India is the tenth largest bottled water consumer in the world. The
consumption of smaller units of 500 ml has increased by around 140% perceptibly. Even
school children are carrying the 500 ml packs in their school bags. The 20 liter bulk water jars
have found phenomenal acceptance in house hold and at workplace. With the growing market
size, one can imagine the employment opportunity being created with the surge in bottled
water industry.
30


3.4 H.R.DEPARTMENT

In this organization there are nearly 50 employees. Which comprises of the staffs in
factory, office and in marketing section.
The staffs will get increment on the basis of their experience in the company.
On festival occasion the employees get bonus and gifts from the organization.
Every employee gets all needful help from the organization.
For every marketing employee mobile phones with cellular network are provided and
even the bill is borne by the organization.

3.4.1 RECRUITMENT
Source
Advertisements are put up in the newspapers and local channel to make the people aware there is a
vacancy in the company and also contact the candidate through phone calls and let them know
about the vacancy in case of the reference.
Policy
Based on the qualification and experience they fit the employees in the job which is vacant. They
will see if the employee has worked somewhere before and try to fill the vacancy according to his
capability.
Process
Candidates are selected by conducting an interview and choose the best. If the selection is for
lower cadre then the HR manager goes on with the recruitment process, if it is for higher level of
the post then the candidate has to go on with an interview along with the Directors to be selected.
The candidates are selected only if they meet the needs of the organization.


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Orientation
One day guidance will be given as to what the work is all about and what type of work is been
given to them and how are they supposed to work. They will have some too guide them for the first
day of the work and let them know about the process.

3.4.2 TRAINING AND DEVELOPMENT
Training
Classes are been conducted for the waiters, captains and all other categories through the theory
classes and videos as to what they must do and what they must not do. They are trained as to how to
welcome the customer, how to take order from the customers and how the food is to be served and
how to have a good presentation in the service.
Development
During their training period only the basic pay is been given to the employee and only if they
perform well the employee will get their increment. The organization will not restrict their
employee in developing them personally, the management encourages and allows the employee to
develop their ability and pay them for their work.



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3.5 QUALITY CONTROL

In mineral water the main work is to maintain the quality and taste.
For maintaining the quality, chemistry lab and microbiology lab is maintained.
Various processes are carried out to maintain the taste and quality of the water.
The quality and taste will only will resemble the product.
So the people in both the labs will keenly watch the quality and taste of the water.
If the people feel that water is not of the required taste and quality the water which is
taken will be let out as raw water.
Every day tests, every hour test, weekly tests, 15hrs test are done in both the labs.
The reports of the test done are maintained and it is sent to the BIS (Bureau of Indian
Standards). They will check the reports and they have to satisfy with the reports.


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3.6 FINANCE DEPARTMENT

All Transaction had done only through Banks.
Finance department maintains the accounts of the company.
Finance department is set up at two places, in factory and in head office.
All the accounts are maintained in the Head office. The copies of all the bills and
vouchers which are given in the factory are sent to the office every day for accounting
and filing.
Finance department also maintains the purchase, sales & expenses.
Every month the Profit and Loss had been made and six month provisional Balance
sheet also sent to bank through auditor, the internal auditing will be carried on every
week end. The Early balance Sheet will be make ready on or May last week. From
April to March.




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3.7. ADMINISTRATION DEPARTMENT

Administration department maintains all section, factory and office, Marketing, banking
section. In factory administration is controlled by Manager and supervisor. The office section
had been controlled by the General Manager through the Director of Company.







35

CHAPTER 4
LEARNINGS

Corporate Culture

I have learnt punctuality, dress code, and planning of work.


Placing Order

I have learnt raising quotations, preparing comparative statement placing order,
receiving the goods, checking for quantity and quality.

Marketing of goods

I have learnt how to promote the consumer product

Accounting

I have learnt day to day accounting of purchases, sales, receipts, payment, and stock
taking.

36

CHAPTER 5
ANNEXURE

1. PREFORMS AND PET BOTTLES

















2.B.T.CAPS:-


37

3.CAPS



4 Bottle filling machine



38

CHAPTER 6

REFERENCES


1. www.google.com
2. www.wikipedia.com
3. www.theinternationaljournal.org
4. www.iosrjournals.org
5. Marketing Management 13
th
Edition by Philip Kotler. Pearson Publication.