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Water Industry In India: Observations & Suggestions

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Water Industry

The culture of bottled water and mineral water is now not very old. Even in western countries the exercise of bottled ingesting water started solely in 1950s. Since historical time human beings have used water from mineral springs, in particular warm springs, for bathing due to its supposed therapeutic fee for rheumatism, arthritis, skin diseases, and a number different ailments. Depending on the temperature of the water, the location, the altitude, and the local weather at the spring, it ought to be used to cure exclusive ailments. This started the fashion of the usage of mineral water for consuming purposes in order to make the most its therapeutic value.

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Since mid1970s massive quantities of bottled water from mineral springs in France and different European international locations commenced to be exported. The idea of bottled water is highly profitable in western countries due to larger health consciousness. The worldwide standards related to bottled water are so stringent that for a specific manufacturer of water to be licensed as bottled water, in most countries, multiple tiers of approvals are required. For example, in the United States, the EPA (Environment Protection Agency) regulates public water systems. The FDA of US has additionally set requirements for bottled water.

India has the world’s greatest populace barring get entry to to clean drinking water. Not surprisingly, sales of bottled water have been soaring here.The boom of this category—19% between 2016 and 2017 in India—outpaced these in any other main global market, a March 22 be aware from research company Mintel said. “This growth is being pushed by means of rising incomes, customer issues over hygiene, and convenience needs, mainly when out of the home,” stated Alex Beckett, accomplice director for meals and drinks at Mintel.

Between 2012 and 2017, Rs9,010 crore ($1.38 billion) really worth of bottled water used to be sold in the country, growing at 184%, according to information from research company Euromonitor. For comparison, fizzy drink sales grew 56% from Rs9,100 crore ($1.4 billion) to Rs14,200 crore ($2.1 billion) throughout the equal period.Meanwhile, quantity increase stood at over 150% from 5.3 billion liters in 2012 to 13.3 billion liters in 2017, Euromonitor estimates.So, who’s shopping for all this bottled water? It was ordinarily city Indian buyers with greater disposable earnings but going through an acute scarcity of potable water, in accordance to Mintel’s research.

For years, consumers in warm and humid India drank copious amounts of colas and home-made beverages. However, recent developments have proven a marked shift. Over the previous few years, people in Asia’s third-largest economic system have turn out to be greater sophisticated and health-conscious. This has resulted in merchandise like packaged juices, ethnic drinks, and bottled water developing at a faster clip. The government, too, chipped in these days by imposing higher taxes on sugary drinks, citing health concerns.

Competitors Of Kingfisher In India

The bottled water enterprise efficiently competes with each the water-purifiers as properly as the tender drinks industry. The water purifierindustry (primarily the Aqua Guard company of the Eureka Forbes) is credited to have finished the spadework for creating the safety and fitnesscognizance in water consumption and is a serious competitor in the household and institutional consumption market, whereas the gentle drinks industry is a strong competitor in the retail consumption market.

Coca Cola

The business enterprise had entered the business in May 2000 thru its extending its soda water brand, Kinley. The manufacturer is handy in pack sizes of 500 ml, 1-litre, 1.5-litre, 2-litre, 5-litre, 20-litre. With the developing market, Coca-Cola is planning to scale up its bottling capacity, up from the 15 existing plants. Coca Cola has recognized 10 to 15 sites for extra flowers for setting up a mixture of company-owned plants, franchisee operations and contract packers.

Pepsi Co

The corporation entered the bottled water commercial enterprise in September 1999 beneath the Aquafina brand. The organization began through concentrated on its product toward the youth with a 750-ml pack. It now retails in traditional retail pack sizes of 500-ml and 1-litre bottles. The company has the sturdy backing of a distribution channel of 60,000 outlet and the fridges at Pepsi’s retail Outlets, which inventory its bloodless drinks. Though the business enterprise is existing solely in selected market as of now, it has plans of growing share in the market by way of increasing its SKUs portfolio as well as its distribution reach. Sources say PepsiCo India has been investing in additional potential at its flora in Bangalore and Chennai for the bulk water.

Bailley

The manufacturer is a product of Parle Agro, the corporation that launched Frooti (mango drink in tetra packs). Bailley is credited with growing a new segment of 330ml SKU (the right extent to quench the thirst of an adult!) in the market.

Nestle

Multinational Nestle has already began making forays into the bottled water enterprise with its manufacturer Pure Life. Nestle is a large player in the mineral water market internationally, with brands like Perrier and San Pellegrino in its stable.Nestle has set-up two bottling flowers in Mumbai and New Delhi, to provider the markets in these regions. It plans originally to faucet solely the massive market for bottled water in large cities and towns.

Bisleri

Mineral Water under the title ‘Bisleri’ used to be first introduced in Mumbai in glass bottles in two types – bubbly & nevertheless in 1965 by way of Bisleri Ltd., a enterprise of Italian origin.This employer was once started out by means of Signor Felice Bisleri who first brought the thought of promoting bottled water in India.Parle bought over Bisleri (India) Ltd. In 1969 & started bottling Mineral water in glass bottles under the brand title ‘Bisleri’. Later Parle switched over to PVC non-returnable bottles & finally advanced to PET containers.

Marketing Strategy

Marketing structure of the Ice Berg food Ltd (Customer Relation Management)Delhi and NCR markets are divided in five parts that are north, west, east, south Delhi region and NCR region (Noida, Gurugram, Faridabad, Sonipat, Panipat, Rohtak). Each area is leaded by there respective sales manager. Each area majorly have two Types of customer:

  • Residential Customer
  • Area sales manager and his team vists in each residential area mostly societies residential flats, colonies and establish a health relation with society incharge, ward commissioner and local Leaders, and residential retail outlet also example:- Kalka ji, Vasant Kunj, Sarita Vihar, NFC, Defense Colony, Shanti Niketan, Vasant Vihar, Shalimar Bagh, Vikas Puri, Janak puri, Laxmi Nagar

  • Corporate customer
  • There are two types of corporate customer public sector corporate customer and Private sector corporate customer. All area sales manager and his team including Business development team also Visit in Corporate and establish relation purchase manager, administrative manager and Director company always looks forward for providing better services to the private corporate customer, for company understands and examine there needs and provides best possible schemes and services accordingly for maintain a better and long-lasting relation with there consumers.

Advertising Process

Company has provided dealership sign board, wall paintings, stickers, banner. company also participates in various events of different societies, schools, half marathon and medical campaign programs to spread awareness of their product.

Impact Of Marketing Strategy On Consumer Buying Intention

In water industries Transportation is also a major factor that affects sales. On time delivery of the orders is the most important to maintain a healthy relation with the potential customers, for that company heavily ensures that the orders should be shipped and must reach to our buyers on correct time, so that no one remains thirsty.

Observations & Findings

  1. Most of Mineral Water’s consumers use Bisleri, Kinley and Aquafina because these are branded ones and are trustworthy.
  2. Consumers use Kingfisher’s Mineral Water because of its brand name of UB group and its rational price.
  3. Kingfisher is Third largest selling brand in Delhi city after Bisleri, Aquafina.
  4. The market share of kingfisher Mineral Water is growing rapidly.
  5. There is around 60% of positive market potential for Kingfisher Mineral Water due to price advantage and good brand image.
  6. Very large number of distributers is there in Delhi region for kingfisher’s Mineral water.
  7. 10% of the retailers say due to the bad service provided by Kingfisher they get demotivated to continue it.
  8. It was found that among all the areas covered, there were some areas in which the schemes were not regular.

Conclusions & Recommendation &suggestions

  • Since Kingfisher’s Mineral water is none the less unknown to so many potential consumers it will take some time to accumulate them all.
  • There is a large opposition in the market in this field.
  • Need to spend cash on sales promoting to attract greater and more clients and retailers.
  • It has modified its packaging of bottles so now shops as properly as consumers are giving greater response than it used to be earlier.
  • Kingfisher has exact furnish chain and availability of staff and team.
  • Profit margin of the retailers by means of promoting of Kingfisher product is more than the other brand of the Packaged Drinking Water Company in the market.
  • Kingfisher should give new gives to retailer as nicely as sellers so that they would ready to maintain inventory of Kingfisher Packaged Drinking Water.
  • Quality of Plastic for Packaging ought to be improved.
  • Packaging have to be standardized & made attractive.
  • Intense Marketing and promotions activities are required to Delhi vicinity for Customer focus to show its major presence in the market in the Mineral Water segment.
  • After sale offerings ought to be improved.
  • Regular go to be maintained for proper supply.
  • More schemes be launched by the corporation and organization.
  • Sales promoting equipment such as key chains, pens, banners, racks, notepads, stickers ought to be given to the retailers.
  • Counters backyard hospitals, cinema halls, at bus stands & at the travelers areas must be given unique consideration.
  • Regular exams should be made to see that the salesman introduces the schemes regularly, appropriate and on time to the retailers, which are added via the company.
  • The Salesman have to at least go to as soon as in a susceptible to these retailers which doesn’t stock Kingfisher, with some new presents and schemes to amplify the market share.
  • Should now not rely a good deal on distributors as they doesn’t introduce schemes, doesn’t supply proper provider and supply.
  • The outlets which purchase identical volume ought to be given equal schemes in order to dispose of biasness.
  • The agency representative like the location income manager have to visitas soon as in 2 months to the present retail clients for the ordinary delight of the retailer and to test overall performance of the product.
  • The enterprise ought to invest in promotion the manufacturer identify Kingfisher to make it a WORD OF MOUTH, which in the end helps in Brand Management.
  • Regular meetings have to be arranged with the corporation workforce in order to know the practical troubles faced by them and must be resolved suitably.

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