WATER PURIFIER

RESEARCH METHODOLGY

ProcessSampling method-Survey via QuestionnaireSample Size-60Population-RuralSample-Village in KarjatType of research-Exploratory/DescriptiveAssumption-General awareness about Water purifierLimitation: Bias in reporting certain data(Income,

willingness to buy etc.)

DRIVERS & CHALLENGES

CURRENT MARKET

Water Purifier market is valued at INR 9 bn in 2009 expected to reach INR 32 bn in 2013

The market is dominated by the organized sectorWater purifiers generally use chemical

purification, ultraviolet treatment and filtration, or reverse osmosis techniques

The market has tremendous growth potential as only 7% of Indians use non manual water purification method

The UV purifier market is estimated to be growing at a lower rate than the chemical based segment

Expensive and not the preferred option in many areas, have a smaller share of the market when compared with UV purifiers and chemical based systems

Chemical based water purifiers are much cheaper than UV and reverse osmosis systems & do not require electricity.

PENETRATION OF HOUSEHOLD WATER PURIFIERS IN INDIA

Source: R S Rajan, vice president, consumer marketing, Ion Exchange India Limited, Mumbai, personal communications, February 20, 2008

MARKET SHARE

UV and Resin based purifiers are the most widely used water purifiers in Urban India

Chemical based purifiers, Aquasure and Pureit, together account for 20% of water purifiers sold

UV water purifier-2/3Reverse osmosis purification systems and

chemical purifiers-1/3

36%

32%

18%

14%

FAMILY INCOME

less than 5k 5k-10k 10k-15k more than 15k

29%

31%

18%

22%

PREFERED RANGE FOR THE PRODUCT

less than 1k 1k-2k 2k-3k more than 3k

72%

28%

WILLINGNESS TO BUY

YES NO

60%

40%

ILLEFFECTS OF UN-PURIFIED WATER

NOT AWARE AWARE

23%

77%

AVAILABILITY OF WATER PURIFIER

YES NO

51%

15%

32%

3%

BRAND AWARENESS

aquaguard kent pure-it others

PRODUCT• BRAND – SHUDH• PRODUCT – Water Purifier• TYPE – Gravity based purifier• LOGO -

PRODUCT FEATURES• SHUDH is an elegantly designed multistage water

purifier with power boiling• Has an Electronic Monitoring system to ensure

pure water or no water• The 3 components, sediment filter, activated

carbon block, and UV chamber ensure pure, safe drinking water

• Auto Power shut off to save unnecessary power consumption

PRODUCT FEATURES• Can be placed on a counter or mounted on a wall• Convenient water filling tray• Do not require Electricity to operate• Purify 3000 litres of water enough for a family of

5 on an average• Water outflow of 2 liter/min• Cost – 1,500 INR• Require a cartridge change costing only 250 INR

MARKETING OBJECTIVE• Generate a 10% increase of customers turned

associates per year• Increase customer referrals by 3% a quarter

FINANCIAL OBJECTIVE• A double digit growth rate for each successive

year• 65% of the revenue stream to come from

recurring revenue

MARKET NEEDS

SHUDH is providing high-quality water filtration systems that are far more affordable than traditional boring waterFollowing benefits to the customers:-• Personal Service: All interactions will be with

the salesperson at a friendly, personal level • High Quality: Only quality products will be sold

SEGMENTATION

DEMOGRAPHIC• SOCIAL CLASS- Middle , Lower

middle class & Lower strata of economy

PSYCHOGRAPHIC• Are cognizant about their

health• Eliminate bacteria and

viruses that cause water-borne disease (polio, hepatitis, diarrhoea, dysentery, cholera, gastroenteritis and typhoid)

GEOGRAPHIC• Rural & Semi-rural market• The immediate

geographic target is Karjat

TARGETING• Rural families with a family income ranging from

less than 5K – more than 15K• Villages in almost all the states across India• A large geographic area is in need of the products

POSITIONINGBRAND – SHUDH

• Cost effective• Customer centric organization servicing the

market need for purified water• The single objective is to position SHUDH as the

premier resource for home water filtration needs.

4 P’s MODEL

PRODUCT/ACCEPTABILITY• Suitable for all type of raw

water• Easy availability nationwide• Many stages of water

purification process• Automatic membrane

cleaning system• No running water

PRICE/AFFORDABILITY• Product price range starts

from 1800 – 2500• Low cost of maintenance &

consumable• Low cost for product• Best price from other

competitors Example: Rs Eureka(aqua flow dx) - 5990 Philips - 6230

4 P’s MODEL OF SHUDH

PROMOTION/AWARENESS• Local newspaper ads • Theater• Promotion through radio• Salesmen

PLACE /AVAILABILITY• Independent dealers• Door-to-door sales force• Haats, Melas

4 A’s MODEL

AVAILABILITY• The main problem is to

reach the retailer.• Logistics.• supply chain.

AFFORDABILITY• survey through

questionnaire.• what price we can sell our

product.• we have priced our product

at reasonable price.

4 A’s MODEL

ACCEPTABILITY• most important theme of

marketing mix is acceptability.

• conducted survey .• Based on the research and

findings we have designed shudh .

AWARENESS• will create awareness about

our product through advertisements, various promotional activities.

• packaging, slogan, name, etc .

• will reach the customers through commercials on media like T.V, radio and outdoor.

• Awareness programs will be held .

SWOT ANALYSIS

STRENGHTS• Direct Sales Strategy• Strong dealer sales network• A wide range of personal

contacts• Focused customer attention• Quality products

WEAKNESSES• Service network in suburbs• Catering to unlimited

customer After sales service• Falling short to serve huge

customer base• Limited by who you know.• Labor intensive to make

initial sales.• Currently a limited product

line

SWOT ANALYSIS

OPPORTUNITIES• By providing very strong

service network in metros, than there will be no space for competitor

• Multi-level business model that generates multiple revenue streams from associates.

• Customers are typically personal contacts with trust bonds already formed.

THREATS• General awareness in

consumer• Competitors• At times source of water• Government policies• Dealers or retailers• A change in public

perception regarding network marketing organizations

COMPETITORS

• Ion Exchange (ZERO-B)• Singer• The Delta -> carbon copy of Aqua guard• Alfa Water Purifiers• Symphony’s Spectrum• The Sam Group -> “Water Doctor” purifier• Batliboi