Mermaid Final Project

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A PROJECT REPORT

ON

“Creating Brand awareness for mermaid packaged

drinking water in corporate leading business”

SUBMITEED TO

MUMBAI UNIVERSITY

In partial fulfillment of the requirements for the award of the

Degree of Masters of Management Studies (MMS)

Submitted by:

SWAPNIL KHAWALE

(Roll No.B-88)

Project Guide:

Prof. RESHMA

YMT COLLEGE OF MANAGEMENT

NAVI MUMBAI



DECLARATION

I, Mr. Swapnil Khawalehereby declare that this project work entitled

―Creating brand awareness for Mermaid packaged drinking water in

leading corporate business ” Have been carried out under the guidance

of my faculty guided by Mrs ReshmaGhorpade This reports neither in

full nor in part will ever be submitted for award of any other degree of either this university or any other university.

Swapnil Khawale



CERTIFICATE

This is to certify that Mr. Swapnil Khawale student of YMT

COLLEGE OF MANAGEMENT,KHARGHARhas completed his

field work report at ―Creating brand awareness for mermaid

packaged drinking water in corporate leading business” on the topic

of SALES & PROMOTION and has submitted the field work report in

partial fulfillment of MMS-Marketing (AICTE) of the UNIVERSITY OF

MUMBAI for the academic year 2010-12.

He has worked under our guidance and direction. The said report is based

on bonafide information.

Dr. C BABU Mrs.RESHMA GHORPADEDirector

Guide

Date:- / /2012

Place: -Navi Mumbai



ACKNOWLEDGEMENT

I would like to express our gratitude to all those who gave us the possibility to

complete this Project. I want to thank the Management of YmtCollgeOf Management

for giving us the opportunity to commence this thesis.

I deeply indebted to my Project guide Prof. ReshmaGhorpade



PREFACE

This project deals with the distribution strategies which is very important factor for

any organization because every company‘s aim is to give the better services to satisfy

customer needs and wants.

Satisfaction level is the function of the difference between perceived

performance & expectation. If the performance falls short of expectation the customer

is dissatisfied. If the performance matches the expectation the customer is satisfied. If

the performance exceeds the expectation the customer is highly satisfied or delighted.

Thus, for customer centered companies are both a goal & a marketing

tool. So, this project presents the matter in a precise & convincing manner. The

subject in this project is in a more compact & in logical manner.

I would like to put on record the debt I owe to my parents for their

constant encouragement & support. This project could not have been completed

without the co-operation & assistance of several kind-hearted souls i.e. my close

friends who helped me at various stages by extending their active support.

Last but not the least I am thankful to Mr. HarshilKamble (Business

development executive) without his personal attention this project would have never

seen the light of the day.



INDEX

Sr. No. Contents Page

no.

1 Executive Summary

7

2 Introduction

8

3 Insight of Packaged Drinking Water

13

4 4P‘s & Consumer habit & preference

17

5 Market categorization & segmentation

21

6 Analysis of Key account & Retail Sales

24

7 Research Methodology & competitors

31

8 Questionnaire

36

9 Analysis & Interpretation

39

10 Limitation

50

11 Findings and observation

51

12 Recommendations& Suggestion

52

13 Bibliography

55



Executive Summary

Objective:

The research was conducted for the SKU ‗1‘ liters & 500 ml Key account of Mermaid

Packaged drinking Water. The main objectives of the research were-

To find out the ‗Market Penetration‘ of the packaged drinking water brands in the

Key accounts in the allocated areas.

To create awareness & improve the Mermaid‘s market potential in the New Mumbai &

Some part of the central Mumbai Market in Key account segments.

To determine the user-nonuser status in allocated areas (Bhandup to Vashi).

To ascertain the ‗Buying Behavior‘ of Key account consumers.

To gauge the satisfaction level with the current packaged drinking water brand used.

To assess the ‗Price Sensitivity‘ of the Key account consumers.

A detail understanding of all the competitive brands of Mermaid‘s packaged

drinking water.

Research Methodology:

Technique: Quantitative

Instrument: Structured Questionnaire

Method: Face-to Face Paper Pencil

Areas Covered: Bhandup To Vashi

Sample Size: 290Keys accounts

Duration: 60 days



INTRODUCTION

Now around 100 companies sell an estimated 484 million liters of bottled water

valued at around Rs. 230crore in the country annually. The tradition of bottled water and

mineral water is not very old. Even in western countries the practice of bottled drinking

water started in 1950s. The trend of having mineral water gained grounds in the

market.Since ancient time people have used water from mineral springs, 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 1970s and since then large quantities of bottled water from

mineral springs in France and other European The concept of bottled has been quite

prevalent in western countries due to greater health consciousness and higher awareness

about health and hygiene countries are exported every year.



Dwarka Group Of Companies

Established 15 years ago by our Chairman… And FounderShri.Devprakash Rajput

Genesis

The foundation stone of the group was laid down by ShriDevprakash H. Rajput, the

group‘s founder chairman in the year 1947 by starting a restaurant namely Subhash

Punjab on National Highway No. 4 at Panvel.

Today the group has transformed into a large conglomeration of companies

owning landed assets to the tune of Rs. 100 crore and annual volume of Rs. 350 crore,

having 25 dairy plants in all over Maharashtra. As if now our current employee

strength is 739 which is 178 in Dwarka, 534 in Adecco, 10 in MHPL and 17 people

in Shilpa Beverages.

Dwarka Group is a closely held conglomeration of various companies

primarily active in three verticals:

Liquid Milk and Milk Products

Hotels and Hospitality

Beverages - Packaged Drinking Water



Expansion

Shilpa Beverages Pvt. Ltd., a company formed by the directors namely Mr.

Kapil Rajput and Mr.Mithilesh Rajput is currently in business of Packaged

Drinking Water. The company is operating from its state of the art bottling

plant at New Panvel in Raigad District.

The motive of the company is to provide quality product in all sizes at the best

possible rates and make a unique brand name in the market through high-

grade service and prompt response.

The company began its entry into the packaged drinking water business by

setting up distribution network for its brand ―OXYFRESH CLASSIC‖ in theyear 2005.

In Sep 2010 Company Changes Name OXYFRESH CLASSIC to MERMAID



Vision

With packaged drinking water as its core product, the group also

envisages to venture into large scale manufacturing of the entire gamutof CARBONATED SYNTHETIC DRINK AND NON –

CARBONATED READY TO DRINK FRUIT JUICES.

The company is presently doing business in areas like Mumbai, Navi

Mumbai, Thane, Raigad, Pune and Ratnagiri district. The company has

expansion plans to do the business on state level basis.

The company also plans to setup its RETAIL DIVISION in metro

cities of Mumbai, Navi Mumbai, Thane and Pune as part of its forwardintegration programmed.

Company also envisages setup a manufacturing unit of 20 LITRE

JARS and SMALL CUPS in Mumbai specifically for Mumbai Region

taking into consideration the huge requirement that the product has in

the island city.

Mission

To create employment opportunities in the rural sector and absorbing local

people by training them for required jobs.

To create employment opportunities for educated unemployed youth in Tier I,

Tier II and Tier III Metro cities by installing retail booths in these cities.

To provide value for money to the end consumers by serving them fresh,

unadulterated product that is packed as per International Standards, at

competitive prices.

To create a mega brand and strengthen the group‘s operations in area of

beverage industry through continual development, expansion and profitability.



Values

Integrity

Leadership Teamwork

Co-operation

Quality

Passion

Openness

Transparency

Journey of Dwarka Beverages

The launch of ―OXYFRESH CLASSIC‖ was a phenomenal success due to

strong distribution network and the expertise that the company had acquired.

The company continued to expand the packaged drinking water business by

extending its geographical limits in distribution, capturing town after town,

district after district. Currently the brand is having its presence in Bombay,

New Bombay, Thane, Raigad, Pune, Ratnagiri and Ahmednagar Districts.

By the end of 2006 ―OXYFRESH CLASSIC‖ had substantial presence and a

very good penetration in market. This was the time that the promoters thought

was ripe to venture into backward integration. Sales volumes required for

profitable running of the unit were already there.

The think tank of the company prepared a detailed blue print for the

company‘s journey into backward integration. Together they setup a strongteam of dedicated professionals department wise and thus began their new

endeavor in March 2007.

With all the required skills and people in place, the commissioning work of

the unit began in April 2007 under the supervision of Mr. Mithilesh Rajput.

With all its processes and Standard Operating Procedures tried and

immaculately tested and refined the company achieved its objective of setting

up its first unit well within time in March 2008.



For carrying out such enormous scale of operations, the company has also

created a strong team of professionals carefully chosen and picked up from

their respective fields. These professionals were appointed as their respective

head of departments after due consideration, deliberation and thorough market

research.

The appointment of these professionals has brought in good corporate

governance in the company and has converted it from a family owned

business to a professionally managed organization.

INSIGHT OF PACKAGED DRINKING WATER INDUSTRY IN INDIA

Water everywhere, not a CLEAN drop to drink! Who would have thought that

there will be a day when sanitation of available water would be more of a concern

than availability of water itself? Hygiene is of great concern to everyone today, and

this is evident with the surging rise in the consumption of packaged/bottled water.

India has 16 percent of the world's population, 2.5 percent of the land mass and 4

percent of the world's water resources.

These limited water resources are depleting rapidly while the demands on

them are increasing. Drinking water supplies in many parts of India are intermittent.

Transmission and distribution networks for water are generally old and badly

maintained, and as a result, are deteriorating. India is one of the biggest and mostattractive water markets in the world. The boom time for Indian bottled water industry

is to continue- more so because the economics are sound, the bottom line is fat and

the Indian government hardly cares for what happens to the nation's water resources.

Corporate control over water and water distribution in India is growing rapidly: the

packaged water business is worth $250 million, and it's growing at a huge 40-50%

annually. Around 1,200 bottling plants and 100 brands of packaged water across the

country are battling over the market, overdrawing groundwater, and robbing local

communities of their water resources and livelihoods. Most multi-national (MNC)



companies view India as the next big market with a lot of potential and growth

possibility.

Several MNCs are waiting in the wings to expand a $ 287 billion global watermarket into India. There is a huge market being exploited by the packaged water

industry, and it's growing at 40% per annum. With over a thousand bottled water

producers, the Indian bottled water industry is big by even international standards.

There are more than 200 brands, nearly 80 per cent of which are local. Most of the

small-scale producers sell non-branded products and serve small markets. In fact,

making bottled water is today a cottage industry in the country. There is investment

worthy mid-cap companies in this segment. From being confined to the uppermost

echelons of society, packaged water has now become a commonplace commodity and

almost a necessity in metros. After witnessing historic growth in recent years, it has

become a Rs 3,000-crore industry, one that is slated to only post healthy growth rates

to become a Rs 10,000-crore business in just three years, The bulk water industry, or

water in 12-, 20- and 25-litre packages, has also witnessed a parallel growth of Rs

700-1,000 crore. Basically, the market can be divided into two segments — the retail

consumer market where the pack sizes are 500 ml, one litre, 1.2/1.5/2-litre and five-

litre, and the household and institutional market, where the pack size is usually are

20- or 25-litre. The Bureau of Indian Standards (BIS) is the governing authority on all

quality and production regulations related to natural mineral water as well as

packaged drinking water.

The all-India market for packaged water is between $145 million (Rs. 8

billion) and $21 million (Rs. 10 billion) and is growing at the rate of nearly 40 per

cent per annum. Even though it accounts for only 5 percent of the total beveragemarket in India, branded bottled water is the fastest growing industry in the beverage

sector. While the single largest share in the mineral water market might still belong to

an Indian brand -- Pearle‘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”

How is bottled water different from Tap Water?

Consistent quality and taste are two of the principal differences between bottled

water and tap water. While bottled water originates from protected sources - largely from

underground aquifers and springs - tap water comes mostly from rivers and lakes

Another factor to consider is the distance tap water must travel and what it goes

through before it reaches the tap. In compliance with international regulations, bottled water

is sealed and packaged in sanitary containers. If a bottled water product is found to be

substandard, it can be recalled. This can‘t happen in case of tap water.

According to regulations in the US, when bottled water is sourced from a

community water system the product label must state so clearly. However, if the water is

subject to distillation, de ionization or reverse osmosis, it can be categorized that way, and

does not have to state on its label that it is from a community water system or from a

municipal source

Types of Water

Package waters:

Packaged waters, other than natural mineral waters, are waters for human

consumption and may contain minerals, naturally occurring or intentionally added; may

contain carbon dioxide, naturally occurring or intentionally added; but shall not contain

added sugars, sweeteners, flavoring or other foods.

Artesian water

Bottled water from a well that taps a confined aquifer (a water-bearing

underground layer of rock or sand) in which the water level stands at some height above

the top of the aquifer. Accordingly, drinking water is water that is sold for human

consumption in sanitary containers and contains no added sweeteners or chemical

additives (other than flavors, extracts or essences). It must be calorie-free and sugar-free.



Flavors, extracts or essences may be added to drinking water, but they must comprise less

than one-percent weight of the final product or the product will be considered a soft drink.

Mineral Water:

Bottled water containing not less than 250 parts per million total dissolved solids

may be labeled as mineral water. Mineral water is distinguished from other types of

bottled water by its constant level and relative proportions of mineral and trace elements

at the point of emergence from the source. No minerals can be added to this product.

Spring water

It is water derived from an underground formation from which water flows

naturally to the surface of the earth. Spring water shall be collected at the spring or

through a bore hole tapping the underground formation feeding the spring. There shall be a

natural force causing the water to flow to the surface through a natural orifice. The

location of the spring shall be identifiable.

Glacial (Glacier) water

It is either the runoff directly from the natural melting of ice of glacier or waterobtained from the melting of glacier ice at a bottled water operation.

Prepared water

Prepared water is substantially altered so that its composition is no longer

characteristics of the defined origins. They have been rendered fit for human consumption

or have passed through community water supply or have had the composition significantly

changed.

Purified Water

Water that has been produced by distillation, deionization, reverse osmosis or other

suitable processes can be labeled as purified bottled water. Other suitable product names for

bottled water treated by one of the above processes may include "distilled water" if it is

produce



17

4 P’s

Product Range

.

Mermaid is available in 250 ml bottles, 500 ml bottles, 1 litre bottles, & 2litrebottles.



18

Packaging

The most critical aspect of our bottling process that sets us apart from the rest of

the industry is the fact that our bottles remain untouched right through the rinsing,

filling, capping and labeling operations.

Filling

Bottles are fed by an air conveyor from the blowing unit directly into the

in-feed of the RFC. Our RFC equipment is neck run and it boasts of a monoblock

unit, which means that every bottle is held by the neck automatically while being

inverted, rinsed and sprayed with ozonated water at 2 bar pressure. After draining,

the bottles are re-inverted and transferred to the filler. At the filler these bottles

are straightened up and gradually lifted to the filling valves which open only

when a bottle is placed under them. Filling is then done systematically through

gravity.

Capping

After the filling process the bottles are then transferred to the capping section.

Here ozonated-water rinsed caps are screwed on the bottle with uniform torque.Since our water is ozonated all product contact parts are of 316L grade stainless

steel and the rubber parts are of EPDM. (All components are water lubricated

above the table top.

Labeling

From the capping section the bottles are directly sent to the labeling section. All

Mermaid bottles are labeled on a hot melt reel feed labeling machine. This

machine allows each individual bottles to be spaced out and fed to the labeling

station where precisely cut labels with a strip of hot melt glue at the leading and

trailing edge, get rolled around the bottle. These labels are fed into the machine in

a roll form too



19

Quality Check

From here on, the bottles go through an online check where qualified personnel inspect

each bottle for any leaks or breakages. They are then packed into sturdy cartons which

are dispatched to the market by our fleet of trucks.

Place:

It has its own distribution network as well as its distributors who comprehensively cover

all the route thus making it possible to place Mermaid‘s product in almost all the major

retail & key out outlets. Although it has its reach in most of the outlets but due to

exclusivity there are certain numbers of outlets which do not keep Mermaid products.

Mermaid has more than 35 Distributors vehicles which cover all the major routes

throughout the day & ensure that each & every retail&key outlet has sufficient stock for

at least 2 days over& above demand. The distribution plays a very crucial role in the

success of Mermaid

Promotion:

Mermaid being a generic name in the packaged drinking water segment is startedadvertising on Marathi commercial news channel. The major promotion is done by

Mouth communication. Discounts are offered to the retailers along with their margins so

that they push the product. Also Mermaid has a strong sales force which constantly

strives on the field in an Endeavour to make new clients & place products in new outlets.

The Distributors vehicles are covered by huge hoardings which have Mermaid add

printed on them. These vehicle acts as a tool for outdoor promotion.

Pricing:

When it comes to pricing Mermaid is very rigid especially in 1 litre bottles. The

price of 1 litre is Rs.15/- where as the price of other Sku‘s like 250 ml, 500 ml, & 2litre

is Rs 6, 10,15 & 20 respectively. Huge discounts are offered on both 1 litersbottle as well

as the other Sku‘s only when consumption is in bulk. Of all the SKUs of



20

Consumer habits and practices

Consumers are growing more health conscious and are more careful of their

drinking habits.

Brand loyalty is very low as all the products taste the same so they can buy just any

product which is on Availability in the chilled form and brand awareness is a crucial

role in purchase decisions.

While there is no aversion to consumption of mineral water by any age group, this

product is mainly consumed by the people in the age group of 20-35 years who

have less attraction of soft drinks or other synthetic drinks whereas youngsters look

in for soft drinks and fruit beverages to quench their thirst.

Visibility is another factor that should be taken care of by the companies as

consumers are not very brand loyal and consume whatever is in front of them.

Consumers often drink bottled water as an alternative to tap water. They think it

tastes better (no chlorine taste) and perceive it to be safer and of better quality.

They also look for security: food scandals inindustrialized countries and water-

borne diseases in developing countries greatly influence consumers‘

attitudes.

Consumers buy bottled water to feel well and to lose weight. Bottled water is perceived

as a healthy alternative to other beverages. Thus, for the aerated beverages bottled water

offers a potential threat.

Moreover, increasing urbanization, causing declines in tap-water quality, can also

explain the popularity. Because it is untreated, natural mineral water is perceived as

"natural" by city dwellers looking for genuineproducts.

Higher living standards and auto usage enable people to easily bring home more and

heavier bottles of water. At the office, a bottle of water is now a common sight on the

desk, next to the computer and the telephone. Drinking bottled water is a sign of a

rise in the social scale. Above all, bottled water has become a huge marketing

process



21

Market categorization

The market initially had only one SKU of 1 litre this was followed a by a number of smaller

and bigger SKUs. Base on this SKU we can divide the entire market into two segments

Each of these consumption markets has a number of SKUs under it. Some of ht most

consumed SKUs in retail and key account market 500ml, 1 liter & 2liter

The institution market is largely constituted by the hotel industry, caterers, offices, parties,

travel, tourism etc.

The market can also be divided on the basis of the price at which this bottled water is

available into three categories:

Super premium mineral water

Premium local natural mineral water

Popular or plain bottled water

Presently, Evian of DANONE group; Perrier and San-Pellegrino of Nestle belong to super

premium category. Himalayan, Brilliant etc. belong to premium local natural mineral water

category.

All other brands like Mermaid, Bisleri, Bailey, Kinley, Aquafina etc. belong to popular or plain

bottled water category.

The packaged drinking water market is often categorized as per the clients they have

Theatres / cinema halls / Multiplexes

Caterers

Picnic spots, Clubs, Gymkhanas , Hotels, Resorts

In-flight kitchens



22

College canteens

General Stores etc

The Market Size & Growth Rate The mineral water market is still maintaining the pace at which it has been growing

over past few years.Market is witnessing launch of a number of player with every passing

day. Presently the market is – night operators who enter the market in summers, reap benefits

by packaging tap water and selling as pure mineral water, and then leave once the season is

over. The problem in the market is not with the players but with the consumers. Poverty levels,

illiteracy has led these players to take full advantage of consumers by selling even the tap

water as mineral water. The fault also lies with the government for being lackadaisical insetting up norms for entry into the industry and also for being lackadaisical in taking proper

care of health of its public.

Total bottled market has a size of Rs. 11-12bn of this around Rs. 7bn is in the hands of

organized sector and rest is with unorganized sector. In the organized sector Bisleri is the

market leader with 48% market share.

well distributed among small regional players. The market for the past three years has been

growing at unimaginable rates of more than 80%; this can be explained on account of the

lower base of previous years.

This strong double digit growth rate of the industry has attracted a number of global players in

the market in the recent past some the major players like Coke, PepsiCo have launched their

products in the market. Manymore like Nestle, Britannia, HUL have evinced interest in the

market. With changing consumer preferences from carbonated drinks towards bottled water

the growth rate is expected to stabilize at 25-30 % for next 4-5 years.

The Rs 1,200 crore branded packaged water market, which was once synonymous with

the desiBisleri, is now witnessing intense competition with multinationals entering the fray

and is also reeling under the high input costs.

Genie is out of the bottle! Indeed, the bottled water industry is one of the most thriving sectors in

India.



23

Market Segmentation

The mineral water market is segmented according to the type of consumer

1. Foreign market:

Foreign tourists have been the main consumers of the mineral water as they face a

lot of digestion problems due to different food habits.

2. Domestic Tourists

Domestic tourists have switched to mineral water mainly because of safety and hygiene

factors.

3. Fashion conscious

Like soft drinks, drinking mineral water is also considered fashionable by some

people.The mineral water consumer is mainly in the age Group of 20-35 years and is an

educated middle class person. This is also the segment of fruit drinks, which have usually

been positioned as fun and health drink for young adults.

The mineral water market is also segmented along pack sizes

1. One litre bottle:

This is meant to spell safety and security for consumers. It is positioned on a prestige

platform for the achieversegment - who likes to make a fashion statement by drinking mineral

water. This segment gets the maximum sales.

2. 500ml bottle

This size has been introduced in the market to target the individual and local

travelers.

3. PET bottle

The size of PET bottles varies from 10 to 20liters. These are mainly for

institutional sales (Wedding parties, Hotels, Corporate, etc



24

Retail & Key account Selling

Retail selling:

Retail selling does not include the end users in the transit. Here Mermaid sells its

value offering to the retailers who then sell it to the end users. Retailers play a crucial role

in the success of any product because they are the people who directly communicate and

transact with the end consumers. The end users or the customer‘s decision are often

influenced by the retailers. Hence it is very essential for a manufacturer to keep its

retailer happy and contended. Because he is the one who pushes the product in the

market. Mermaid seeks to satisfy its retailers by giving those justified margins and offers.

In its Endeavour to reach its various customers Mermaid SKU`s to serve the

purpose of its varied customers Mermaid places its offering in more than 2000 outlets in

Mumbai & Navi Mumbai . It has a wide reach in all over Mumbai. The product can be

sighted in most of the outlets in Mumbai Mermaid has to reach to almost all the major

medical outlets. The major promotion that is done by Mermaid for retail selling is POP

merchandise displays. As mentioned earlier retailers are instrumental in the success of a

product as they push the product to the consumers. In the recent years the soft drinks

majors such as Coca Cola & Pepsi who offer packaged drinking water have given tough

competition to Mermaid by Saying monopoly to the retailers. So they tie up with the

retailers to sell their products exclusively. As a part of promotion they offer their

refrigerators and other cooling system to the retailers and are forced to keep only their

products in those freezers. Due to all these hindrances Mermaid faces a toughcompetition from the soft drink majors hence even though the customers demand for

Mermaid they gets something else to quench their thirst.

From last one year Mermaid contribute several new key activation in retail as well

as in Key account area. Hence it slowly and gradually creates awareness in the market.



25

Pre sales Order

This is the order received in advance before the vehicle goes on the route. These

orders are entered into the data base from the consumers which are sent along with the

salesman to the destination.

Ready stock

This is the order received by the salesman on the route wherein he prepared a

manual bill and gives the delivery to the customers.

Analysis of Key account & Retail Sales

For Keyaccount Sales:

Customer

Awareness

Quality Availability Sales Force Pricing

Bisleri E G E G F

Aquafina G G G G F

Kinley G G F G F

Mermaid F G G G G

Local P P P P E

E-Excellent

G-Good

F-Fair

P-Poor



26

Analysis of the above Table:

The above analysis shows that Mermaid is not excellent in any areas due to just

entering in the world but this is again true fact that it was no poor in anywhere. As a

starting stage mermaid achieved satisfactory result within a short period of time . Hence

it need not concentrate in creating customer awareness about its brand as it is already

generic in the segment, but again it has to convey its customers about any new offerings

that they come up with. Also the quality & availability of Mermaid is better than other

local brands, hence it need not worry about it. The only area of concern is the

Relationship and awareness. Hence Mermaid has to first decide who its competitors are.

If it only wants to compete with the branded segment then its pricing strategy &

promotional strategy is at par with others but if it wants to compete with the entire

segment (i.e., branded & unbranded) then it has to come up with a separate Marketing

strategy to tackle the competition.

Recommendation:

As per the research done in the (Vashi to Mulund area) it was found that the

unbranded segment as well as some of the brand in the market having monopoly with

Key account and retailer. Mermaid has a chance to capture that unregimented market as

well when it comes to bulk consumption. This is because these local brands are priced at

much more less than the rate at which Mermaid& some of the other brands are offered.

Mermaid cannot afford to lose this market if they want to stable in the market for long

year. Hence it should come up with an entirely different offering for such consumers who

are more of price conscious than quality conscious.



27

For Retail Selling:

Customer

Awareness

Quality Availability Sales

Force

Pricing

Bisleri E E G G G

Aquafina G G E G E

Kinley G G F G F

Mermaid F G G G E

Local P P P P E

E-Excellent

G-Good

F-Fair

P-Poor

Analysis of the above Table:

The above table shows that Mermaidgood in customer awareness & quality as

well as availability.. The pricing of Mermaid is at Discount with other brands &also the

margin that other brands offer to the retailers is lower than that of Mermaid, this being

the reason that the retailers now move to keepMermaid. Also the brands like Aquafina

&Kinley belong to the cola majors who have an already established distribution network

& due to exclusivity of these brands in many of the outlets Bisleri is not able to place its

product

Consumer Behavior:



28

Market Penetration

The major objective of the survey was to find out the market penetration of the

packaged drinking water brands in the corporate offices at Vashi to Mulund. It would

determine the users & non-users of Mermaid

Information of Market Penetration will help Mermaid to know a measure of the

amount of sales or adoption of a product or service compared to the total theoretical

market for that product or service. The amount of sales or adoption can be an individual

company‘s sale or industry while the theoretical market can be the total population or an

estimate of total potential consumers for the product. It will help the company to know

which all competitors exist in the given area Buying Behavior

The survey was also aimed at ascertaining the buying behavior of corporate

consumers i.e. the basis of preference of a particular brand in the given area. Buying

Behavior will help the company to know the consumption pattern and will also help the

company to know what exactly does the consumer is expecting from the company?

What influences consumers to purchase products or services? The consumer

buying process is a complex matter as many internal and external factors have an impact

on the buying decisions of the consumer.

There are several processes which a consumer goes through before he buys a particular

brand they are:-

1. Problem/Need Recognition

How do you decide you want to buy a particular product or service? It could be

that any existing brand of packaged drinking water which you are using may be

inefficient in providing service or you may be having problem with availability of water

in your corporate offices or so or you may be having problems with price or quality etc

then only you would try and shift to other brand or start of with new service.

2. Information search



29

So we have a problem now? What‘s the solution? Now in the above case the

corporate may look into other offices in his premises which brand they are using? Are

they happy with their service? Or what‘s the price of the Brand they are consuming? And

various other information. He will go through all these information and then come to

conclusion.

3. Evaluation of different purchase options

So what brand of package water do we purchase? Shall it be Bisleri, Mermaid,

Aquafina or Kinley? Consumers allocate attribute factors to certain products, almost like

a point scoring system which they work out in their mind over which brand to purchase.

This means that consumers know what features from the rivals will benefit them and they

attach different degrees of importance to each attribute. Consumers usually have some

sort of brand preference with companies as they may have had a good history with a

particular brand or their friends may have had a reliable history with one, but if the

decision falls between the Mermaid&Kinley then which one shall it be? It could be that

the review the consumer reads on the particular Mermaid product may have tipped the

balance and that they will purchase that brand.

4. Purchase decision

Through the evaluation process discussed above consumers will reach their final

purchase decision and they reach the final process of going through the purchase action

e.g. The process of going to the shop to buy the product, which for some consumers can

be as just as rewarding as actually purchasing the product. Purchase of the product can

either be through the store, the web, or over the phone.

Satisfaction Level

It is very much important to know whether your consumers are happy with your

product or not? Company should try and understand the requirement of their consumers

and then try to satisfy them as per their need then only company will be able to retain its

image in the market. Gauging satisfaction level is the key role of research department.



30

Company should not only try to gauge the satisfaction level of its own brand but also of

its competitors. This will help company to build up further strategies as well.

Price Sensitivity

When it comes to purchasing any product the most important factor which is

considered is Price. Price Sensitivity is the awareness of the consumer to what they

perceive to be the window of cost within which they will buy a particular product or

service. It is imperative that the marketing professional be able to assess price sensitivity

in the target market accurately as missing the window even by a small margin can have

enormous impact upon the company‘s sale.

RESEARCH METHODOLOGY



31

METHODOLOGY

The project was to involve a detail study of the market based on the consumers. The

markets available for the study were the retail shops, hotels and clubs. For estimating the

market potential and our own brand‘s market share different methods of primary data

collection were employed in the form of questionnaire, structured and unstructured

interviews and methods for establishing facts about building marketing insights for

packaging margins etc.

RESEARCH APPROACH:-

There are different research approaches and the research instruments that were

employed during the research work. The common research approach for collecting the

primary data are observations, focus group, surveys and experiments.

In this case, a general survey to gain knowledge about the market, Survey was

undertaken where particularly information was gathered

METHODOLOGY ADOPTED

The success of any event heavily depends upon the way chosen for

its execution. This includes ensures of some basic question to the specific

focus on constraints as well. In other words they can call the methodology

as the backbone of any research. It also includes research or study

method. Thus when they talk of methodology they not only talk of

methodology they not talk of methods but also consider the logic behind

the methods they use in the context of their study

objective and explain way use are using them so that study results are capable

of being evaluated logically.



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Research Design - Descriptive

The Descriptive research is used as the study includes surveys and

fact finding enquiries related to packaged drinking water industry. The major

purpose of Descriptive research is description of the state of affairs as it exists

at present.

Research Approach - General Survey

In this case, a general survey to gain knowledge about the market,

commonly known as the pilot survey was and undertaken where particularly

information was gathered with respect to the brands, people‘s / consumers‘perception so that it serves as a foundation toprepare the questionnaire for

collecting primary data and that it helps in deciding other methods to be

adopted which may be useful in gathering the necessary information.

Research Problem for the present study -

Analyzing the market of Mermaid package drinking water from VashiToMulund.

Data source -

Primary data

- Questionnaire

- Personal interview

(structured/unstructured)

Secondary data



33

- Internet

- Files/document

- Manual of the organization

- Books & Project reports

Data representation technique - Bar graphs & Pie charts

Total sample size -296

Type of sampling - Non- Probability

• Sample Area -Vashi To Mulund

• Sample unit - Hotels/Restaurants

• Respondents - Owners of the shops, salesmen, purchase or food

&beverages managersof different hotels/restaurants

Competitors of Mermaid in given area



34

The bottled water industry effectively competes with both the water-purifiers as

well as the soft drinks industry. The water purifier industry (primarily the Aqua

Guard brand of the Eureka Forbes) is credited to have done the spadework for creating

the safety and health consciousness in water consumption, and is a serious competitor in

the household and institutional consumption market, whereas the soft drinks industry is a

strong competitor in the Key account as well as in retail consumption market.

COCA COLA

The company had entered the business in May 2000 through its extending its soda

water brand, Kinley. The brand is available in pack sizes of 500ml, 1-litre, 1.5-litre, 2-

litre, 5-litre, 20-litre and 25-litre.

PEPSI CO.

The company entered the bottled water business in September 1999 under the

Aquafina brand. The company began by targeting its product towards the youth with a 750-

ml pack. It now retails in conventional retail pack sizes of 500-ml and 1-litre bottles. The

brand has the strong backing of a distribution channel of 60,000 outlet and the

refrigerators at Pepsi‘s retail Outlets, which stock its cold drinks.

BAILLEY

The brand is a product of Parle Agro, the company that launched Frooti (mango

drink in tetra packs). Bailley is credited with creating a new segment of 330ml SKU

(the right quantity to quench the thirst of an adult!) in the market.

OXYRICH

Dhariwal Industries Ltd - Food & Beverages division has one of the mostmodern andcomprehensive packaged drinking water facilities spread across India. The

labels and cartons are also made in the group companies to ensure total control on quality

and processes. Oxyrich (300% more oxygen) is clear, smooth, pure water with a refreshing

boost of extra Oxygen.



35

BISLERI

Mineral Water under the name 'Bisleri' was first introduced in Mumbai in glass

bottles in two varieties - bubbly & still in 1965 by Bisleri Ltd., a company of Italian

origin. This company was started by Signor FeliceBisleri who first brought the idea of

selling bottled water in India.

LOCAL PLAYERS IN MARKET

Life

Apoorva

Oxifresh

Sagar

Aviva

Oxygen

Suman

Questionnaire



36

Organization: ________________________________________________

Name: ________________________________

Designation: ___________________________

Address: ____________________________________________________

____________________________________________________

____________________________________________________

Contact No: _________________________

1. Do you purchase packaged drinking water?

Yes No

If no then why? __________________________________________

2. Which of the following brands do you currently purchase?

Bisleri Kinley Aquafina Others________________

3. Why do you prefer the above brand?

Price Quality Service Others_______________

4. What is the price you are paying for the above brand? ___________________



37

5. How frequently do you buy the above brand?

Daily Alternate Days Weekly

6. In what quantities do you buy the above brand? (no of jars/day) ___________

7. For how long are you using the above brand?

< 1yr 1-5 yrs to 5 yrs 5 yrs and above

8. From whom do you procure the above product?

Company Distributor Retailer

9. How would you relate the overall quality of your relationship with the supplier

considering all of your experience with them?

Excellent Good Fair Poor

10. How satisfied you are with the quality of the water?

Extremely Satisfied Dissatisfied Extremely Dissatisfied

11. Any specific problems faced by you? Please give details.

__________________________________________________________________

__________________________________________________________________

12. Any suggestions would you like to give?



38

ANALYSIS & INTERPRETATION

The questionnaires are interpreted considering the following factors for the locations i.e.

VashiToMulund

Flow of the findings:

Distribution of different Sources of drinking water

Mermaid vs. Competitor position from Vashi to Mulund area

Market share of existing brands(users)

Market share of existing brands(volume)

Selection of mineral water

Basis of preference of a brand

Price paid for the brand



39

Source of Purchase

Preferred Mode

Awareness of Brand

Availability of mineral water

Packaging of mineral water

Quality of mineral water

All the above findings and interpretations are explained with help of statistical data.

Data tabulation analysis & Result

1. Distribution of different Sources of drinking water

Brands No of Key account consumers

Mermaid 58

Competitor 104

Aqua guard 42

BMC Water 56

Closed & no info 38

Total 298



40

Interpretation –

The above data represent consumption trend in given area. The consumption rate

of ―Mermaid‖ in given area is 19 % and the competitors are 35%. The data clearly

indicate that other than packaged drinking water there are many other means of water

supply in given area, i.e Aqua guard 14%, BMC water 19%.

Mermaid vs. Competitor position

Brand Market

Share

(Users)

Market Share

(Volume)

Mermaid 12 19Competitor 88 71

19%

35%14%

19%

13%

Consumption Trend from Vashi to Mulund

Mermaid

Competitor

Aqua guard

BMC Water

Closed & no info



41

Market shares (Users) Market shares (Volume)

1219

7871

Market shares

Mermaid Total Competitor



42

Selection of mineral water is very crucial role for all key accounts & Retailer.

From the above data we can say that Brand awareness is very important for

creating high sales value. Near about 26 % key account purchase mineral as per

the brand name. The key account mostly prefer Branded packaged drinking

water like ― Bisleri‖ , ―Aquafina‖ , Kinely etc.

At the same time consumer prefer packaged drinking water which having good

quality, Reasonable price, & available on the substitute rate on time.

Consumers have option to go for any of the brand which is easily available and

have good market reputation.

As per the study concern the mermaid packaged drinking water have good quality

of water as well as it has a reasonable price. The only thing which backs it is

brand name n packaging.

There is no proper sales promotion for the brand. Most of the key consumers are

not aware about this brand.

Source of Purchase

Distributor 71



43

Company 8

Retailers 57

Sources of Purchase

Interpretation –

Most of the consumer prefer to purchase packaged drinking water from

Distributors & Retailer. If they required bulk quantity of consumption then for heavy

discount they go with company directly.

The distributor channel of ―Mermaid‖ packaged drinking water now reach each and

every area of Navi Mumbai and Mumbai hence it is easy for the consumer to get quick

service and match demand supply position of there business.

Distrubutors52%Retailer

41%

Company

6%

other

1%



44

Preferred mode of Payment

Cash 97

Credit 03

Interpretation –

Most of the consumer in Key account market prefers Cash payment.

97%

3%

Sales

Cash Credit



45

Interpretation –

Awareness ofMermaid mineral water is lesser in comparison of other famous

brands like kinley, oxyrich, bisleri in the key account as well as retail market.

0

10

20

30

40

50

60

70

80

90

100

Bislery Aquafina Kinely Oxirich Bally Mermaid Other

Awareness of Brands



46

Interpretation –

Due to distribution channel Aquafina, Kinley is very easily available in market

whereas Mermaid is little bit difficult to find

0

10

20

30

40

50

60

70

80

90

AquafinaKinely

BisleryMermaid

BallyOthers

Oxirich

Availability of Mineral water



47

Interpretation –

Most of retailers think that the product packaging can attract more customers

0

10

20

30

40

50

60

70

80

90

Oxirich Bisleri Aquafina Kinely Mermaid Others

Product packaging



48

Interpretation –

As per Quality concern, oxyrich is leader in this sector so instead of higher price

customers don‘t hesitate to buy the product .

0

10

20

30

40

50

60

70

80

90

100

Quality of mineral water



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Interpretation –

In Market The quality as well as price of competitive brand as near about

flexible except Bisleri&oxrich. The price of Bisleri 1 Ltr per box (12 bottle ) is Rs: 130

At the same time mermaid 95 Per box, Aquafina, Kinely, OxirichRs 105, 100, & 120

Respectively.

0

20

40

60

80

100

120

140

BisleriOxirich

AquafinaKinely

MermaidOthers

Price Comparison of Mineral water



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LIMITATIONS

Any research or study always has some limitations under which this has to

be undertaken. This one too was not an exception. These limitations are poised by the

environment some external and some inherent. This study has been conducted with

outmost consideration to the adequacy of data and quality of information, though as

mention earlier the reliance on the sources cannot be minimized to zero in context of

precision. The limitation can be enlisted as here under:-

1. The perception level of the respondents.

2. Availability of documents as sources of secondary information.

3. Reliability of information collected from various public information sources such

as magazines and website.

4. Sometimes respondents were not willing to fill the questionnaire.

5. Sometimes the required persons were not available at their place.

6. Very often the respondents do not express their true feelings, in such case their

habit, preference, practice, cannot be assessed correctly.

7. Some of the respondents refuse to give the important information best known to

them.

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



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OBSERVATIONS & FINDINGS

1. Most of Packaged Drinking Water‘s consumer hotels & restaurant use Bisleri,

Aquafina, Kinley and Oxyrich, because these are branded ones and are

trustworthy.

2. Customer says that public does not demand for Mermaid PWD because they are

not aware about the Brand Mermaid.

3. Some customers use MERMAID Packaged Drinking Water because of its

attractive name & packing and due to its rational price.

4. The market penetration of MERMAID Packaged Drinking Water is good after

facing so much challenge in South Mumbai area with their competitors like

Aquafina, Bisleri, Oxyrich, and Kinley.

5. Mermaid Packaged Drinking water is lacking behind because of its quality and

packaging.

6. Very less number of distributers is there in South Mumbai region for Mermaid

Packaged Drinking water.

7. Distributors should have to be specifying with their area of distribution.

8. The company does not provide as many schemes as provided by its competitors to

the dealer and retailers.

9. It was found that among all the areas covered, there were some areas in which the

schemes were not regular.



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RECOMMENDATIONS & SUGGESTIONS

On the basis of this study, the following suggestions have been made to make the

Future Option more effective: -

Quality of Plastic for Packaging must be improved.

Packaging should be standardized & made attractive.

The Taste of the water should be tested neatly to maintain the quality of the water.

Intense Marketing and promotions activities are required to South Mumbai region

for Customer awareness for Mermaid to show its mere presence in the market in

the Packaged Drinking Water Segment.

After sales services should be improved.

Regular visit should be maintained by Area Sales Manager or executives for

proper supply.

More schemes should be launched by the company and organization.

One week credit facility or one bill due system should be introduced.

Sales promotion tools such as pens, banners, racks, note pads, stickers should be

given to the retailers.

Counters outside hospitals, cinema halls should be given special consideration.

Regular checks should be made to see that the salesman introduces the schemesregularly, properly and on time to the retailers, which are introduced by the

company.

The Salesman should at least visit once in a week to those customers who don‘t

stock Mermaid, with some new offers and schemes to increase the market share.



53

Should not depend much on distributors as they doesn‘t introduce schemes,

doesn‘t provide proper service and supply.

The company representative like the area sales manager should visit once in 1

month to the present Key a/c customers for the overall satisfaction of the

customer and to check the performance of the product.

The company should invest in promoting the brand name MERMAID to make it a

WORD OF MOUTH, which ultimately helps in Brand Management.

Salesman should have to build up good repo with Key A/C consumers as they

visit the outlets for supply in order to maintain good customer relation.

Regular meetings should be arranged with the company staff in order to know the

practical problems faced by them and should be resolved suitably.



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CONCLUSION

Since Mermaid Mineral water is new in market so it will take some

time to capture the market.

There is a huge competition in the market in this field.

Need to spend money on sales promotion to attract more and more customers and

retailers.

It has modified its packaging of bottles so now retailers as well as

consumersare giving more response than it was earlier.

Mermaid has good supply chain and availability of staff and team.

Profit margin of the retailers by selling of Mermaid product is more

than the other brand of thePackaged Drinking Water Company in the

market.

Mermaid should give new offers to retailer as well as dealers so that

they would ready to keep stock of Mermaid Packaged Drinking Water.

Since Kingfisher is popular by name of Dwarka Group in the market

so most of the high class families are not responding to the product.



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BIBLIOGRAPHY

Web sites:

www.bottledwaterindia.org

www.bisleri.com

www.dwarkadairy.com

www.shilpabeverages.com

www.bis.org.in

www.newagepublishers.com

Books:

Marketing Management by Philip Kotler (13th Edition)

Kothari C.R., Research Methodology: Methods and Techniques

http://www.newagepublishers.com/



Mermaid Final Project

Documents

Transcript of Mermaid Final Project