MARKETING PROJECT ON SWACH WATER PURIFIER

UNDER THE GUIDANCE OF: MARKETING MANAGEMENT - I PROF. DR. K.C.PRAKASH SUBMITTED BY MAYANK R AGIWAL ENRL NO: 12BSPHH010535 SECTION: N SEAT NO 42

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IND EX
Content Page Nos
1. History of the Product.3-4 2. Major Competitors in the Market..5-6 3. Market Share of Top Players in the Industry..7-8 4. Marketing Mix.9 5. 4Ps Analysis of Tata Swach and its competitors.10-12 6. Competitive Advantage of Tata Swach and its Competitors 13-14 7. Suggested Marketing Strategies..15 8. Bibliography ...16

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HISTO RY
The next World War if ever will not be over land, but on WATER. Globally more than one billion lack access to safe drinking water, nearly all of them in the developing countries, including India. Nearly onethird of the population worldwide live in areas which are water stressed. This figure is expected to increase further by a fold by 2025. Approximately 80% of diseases in India are caused by water borne micro organisms. This is true in rural as well as urban India. However, awareness of health risks linked to unsafe water is still very low among the rural population. The few who treat water resort to boiling or use domestic candle filters. With more & more number people are becoming conscious about contaminated drinking water; the demand for water purifiers is rapidly rising especially in India. In the past few years, Indian water purifier industry has seen an exponential growth of 22% CAGR (Compounded Annual Growth Rate). There are three types of Water Purifiers in the market: Ultra Violet Based Reverse Osmosis Based Chemical Based

TATA SWACH WATER PURIFIER

Tata Chemicals Limited is a global company with interests in chemicals, crop nutrition and consumer products. Established in 1939 at Mithapur (in Gujarat, India), it is a part of the Tata group, with manufacturing facilities in India, UK, the Netherlands, Kenya and USA. Tata Chemicals Limited is the worlds most geographically diversified soda ash company, with an efficient supply chain that can service consumers better and faster across the globe. The company also has extended its operations into the service sector and touches lives through applications in agriculture, animal nutrition, construction, consumer products, glass, metals, pharmaceuticals, soaps and detergents, and textiles and leather industries Tata Chemicals Limited planed to leverage its expertise in chemicals and agri-businesses together with its in-house research capabilities to

develop strengths in new businesses and sustainable technologies. The company set up an Innovation Centre in 2004 to develop world class R&D capability in nanotechnology and biotechnology, and is also working to build a

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significant presence in the biofuels sector. Its Innovation Centre is also working on technologies that can mitigate climate change through "green chemistry" and product offerings that will make a difference like flue gas treatment, carbon absorption and nano glass-coatings for insulation In 1980 Tata Chemicals set up a non-governmental organization Tata Chemicals Society for Rural Development (TCSRD) that works towards holistic community development, including managing water, land and other natural resources, encouraging enterprise development, and promoting health and education. TCSRD's activities have been recognized at a national level Tata Swach has been an example of collaboration between various Tata Group companies. It was an idea that originated with Tata Consultancy Service and was subsequently picked up by Tata Chemicals, thereafter the joint team improved and perfected the technology and made the product meet USEPA (United States Environmental Protection Agency) standards. When the Swach was ready, the team realized that no off-the-shelf production machine or process was available to mass manufacture such a product. The team discovered that another Tata Group company, Titan Industries (makers of watches & other precision instruments) had expertise in supplying automation solutions by using its precision engineering capability arising out of watch manufacturing. Titan developed the special assembly presses to undertake mass production. Thereafter, as Swach was ready for launch, help was sought from Tata Business Support Solutions and Tata Teleservices Ltd to provide call center and toll-free number facilities, as part of after-sales-service backbone for the product. The vision for the Swach is to reduce the incidence of water borne diseases by making safe drinking water accessible to the have-not's. The Swach water purifier was unanimously voted as deserving the overall ICIS Innovation Award, as well as winning the Best Product Innovation category. In the seven years that the ICIS Innovation Awards have been running, no entry has generated as much admiration and acclaim amongst the judges as Tata Chemicals' Swach nanotech water purifier did (Baker, Tata tops the Awards, 2010), they noted that the Swach was well established and deeply embedded in the philosophies of social and corporate responsibility, which characterizes the companys approach to business and innovation. The innovation was judged to cover all bases. It includes a novel use for a readily available natural waste stream rice husk ash; it exploits hi-tech nanotechnology in the active biocidal ingredient silver; and it addresses a huge social problem at an economic cost the provision of safe drinking water in developing areas of the globe. The Tata Swach brings low-cost water purification within the range of millions of people, initially in India, where it is now being marketed (Baker,

Tata tops the Awards, 2010).

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MAJOR COMPETITORS IN THE MARKET

AQUASURE WATER PURIFIER FROM EUREKA FORBES.

PUREIT WATER PURIFIER FROM HINDUSTAN UNILEVER LTD.

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 KENT GOLD WATER PURIFIER FROM KENT RO SYSTEMS LTD.

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MARKET SHARE OF TOP PLAYERS IN WATER PURIFIER INDUSTRY

The Indian Water Purifier Market is on a high growth trajectory. It is estimated at Rs.2000 crore with total sales of about 5 million units for the year 2010-11.

Eureka Forbes has the highest turnover in the segment, estimated at over Rs. 500 crore. It is present in all the three categories RO based, inline/UV based, and offline purifiers through its brand AquaSure. Hindustan Unilever Limited dominates the offline water purifiers market and has some presence in the inline category with Marvella OGT and Autofill purifiers. Its turnover from water purifiers division is estimate turnover of Rs.300 crore. Kent with its focus primarily on the premium RO-based purifiers had a sales turnover of Rs.240 crore in 2010-11. Kent moves ahead with its vision toward making the world a healthy and happy family. Tata Swach launched as a low cost water purifier focuses primarily on BOTTOM OF THE PYRAMID costumers its turnover from water purifier Industry is estimate of Rs. 100 crore. Others Markets consist of Whirlpool, Usha Brita, Bajaj, Zero B water purifiers and these consist of around 42.50% of the market share in the water purifier industry.

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MARKET SHARE OF TOP PLAYERS IN WATER PURIFIER INDUSTRY

Market Share

others, 42.50%

Eureka Forbes , 25.00%

Eureka Forbes PureIT Water purifier Kent Tata Swach others

PureIT Water purifier, 15.00%

Kent, 12.50%

Tata Swach, 5.00%

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MARKETING MIX
4P ANALYSIS
The major marketing management decision can be classified on one of the following four categories. 1. Product 2. Price 3. Place 4. Promotion These variables are known as the marketing mix or 4 Ps of marketing. They are the variables that marketing manager can control in order to best satisfy customers in the target market. Product: - The product is a physical product or service offered to the customer. In the case of physical product, it also refers to any services or conveniences are the part of offering. Product decision includes aspects such as functions, appearance, packaging, service, warranty, etc. Price: - Pricing decision should take into account profit margins and the probable pricing response of competitors. Pricing includes not only the list price, but also discounts, financing, and other options such as leasing. Place: - Place decisions are those associated with channels of distribution that serve as the means for getting the product to the target customers. The distribution system performs transactional, logistical, and facilitating functions. Promotion: - Promotion decisions are those related to communicating and selling to potential consumers. Since these costs can be large in proportion to the product price, a break-even analysis should be performed when making promoting decision. It is useful to know the value of a customer in order to determine whether addition customers are worth the cost of acquiring the m.

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4P ANALYSIS OF TATA SWACH AND ITS MAJOR COMPETITORS IN WATER PURIFIER INDUSTRY

PARAMETER TATA SWACH S PRODUCT Tata Swach Lavita, Tata Swach, Tata Name of Swach Smart. the Product Tata Swach Lavita 18 litres Tata Swach 18 litres. Capacity Tata Swach Smart 15 litres.

EUREKA FORBES AquaSure

HINDUSTAN UNILEVER PUREIT

KENT GOLD WATER PURIFIER Kent Gold Plus, Kent Gold Optima, Kent Gold Cool. Kent Gold Plus 20 litres Kent Gold Optima 10 litres Kent Gold Cool 17 litres. RO: Removes even Dissolved Impurities like Arsenic, Rust, Pesticides, and Fluorides etc. besides removing Bacteria and Viruses. UF: Removes Bacteria and Cysts. UV: For double purification, totally kills remaining

Use of Tata Swach Bulb. Modern Chemistry of Silver Nano Technolog Technology. y Advance Dual function mechanism: 1.Pure Power Indicator 2.Advance auto shut off mechanism

PureIt Intella, PureIt, Amrit Classic, Kitanu PureIt Autofill. AquaSure PureIt Intella 12 Kitanu litres. Magnet 20 PureIt Classic litres. AquaSure 23 litres. Galaxy PureIt Autofill 10NTU -23 litres. AquaSure that It is a 4 Xtra A purifier can stage disinfect purification bacteria and technology virus is base on comprises of the technology microfiber used in space mesh for dirt, shuttles. This compact product was carbon trap for developed in parasite technical & pesticide, collaboration germ kill with US-based processor for Water Security bacteria & Corporation virus removal making it of and a good quality polisher where buyers

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Natural Minerals in the purified water Colour Blue & Green Blu Protect e against water borne diseases caused by bacteria, viruses and cysts. It has been designed keeping in mind the requirements to provide you pure and safe AquaSure Kitanu Magnet Rs. 2499/AquaSure Galaxy Rs. 2199/AquaSure Xtra Rs.1490/Blue & White Meets stringent criteria of Environmental Protection Agency (EPA), USA, for harmful virus & bacteria removal to give you pure drinking water Blue & White Purification by Hollow Fiber Ultra Filtration Membrane (UF

Others

Micro-mesh systems that remove the minutest visible impurities and make water clean and clear. Tata Swach Lavita Rs.2050/Tata Swach Rs. 1199/Tata Swach Smart Rs. 899/-

PRICE

Membrane) removes bacteria as well as cysts. Use of Activated Carbon for better disinfection of Kent Gold Plus PureIt Intella Rs. Rs.900/2600/-. PureIt Classic Kent Optima Rs.2200/Rs.1250/PureIt Autofill Kent Gold Cool Rs.3200/Rs.3200/-

PLACE

Market Reach

Target Segment

Distributi on Distribution through retail through consumer outlets, durable showrooms retail Bottom of Househol Pyramid the (BOP) customers. Households which do not

ds, Industries income group . who cant Initially afford UV or targeted in RO water metro cities,

This product is They make their available by distributors product through a huge and dealers as network of well as huge their present as retail outlets well as new such to lower distributorslower as Big Target to and Target or middle or middle income group which do not have access to safe drinking

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Homes which do towns not have electricityor PROMOTION running water Tata Swach has an army of foot Offline soldiers with one Promotion mission s education and demonstrations carried out Online Promotion s Multimedi a Promotion Other Promotion s

have electricity or running water

Direct Marketing, Door to Door Selling of products,

Direct Marketing, Kiosk, Doctors Clinic. Promotion Promotion through www.pureitwat er. com & www.hul.co.in Commercials Newspapers Direct Marketing, Catalogues, Bill boards. Promotions through www.kent.co.in TV

Promotion through through www.tataswach.c www.eurekaforb om es. com Commercials Commercials, newspapers and newspapers advertisements and magazines Promotion through CSR Activities.

Commercials, and magazines Newspapers, Demonstrations Demonstrations and campaigns. and Campaigns

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COMPETITIVE ADVANTAGE OF TATA SWACH & ITS MAJOR COMPETIT ORS.

TATA SWACH WATER PURIFIER
Tata Swach a product from one of the most trusted business houses the Tatas. Tata Swach Nanotech Water Purifier is the result of dedicated efforts to make a great vision true: Ensuring safe drinking water to the masses. It provides water purifiers to the Bottom of Pyramid (BOP) Population at a low cost. It has an Advanced Technology which removes 1 crore bacteria and 1 crore viruses from 1 litre water. Tata Swach does not use potentially harmful chemicals like chlorine, bromine and iodine and instead uses the power of Modern Chemistry to introduce nano-silver for safe and enhanced purification. Tata Swach is unique in its class for its simple and easy operations. It is effortless to operate, easy to clean and maintain. Tata Swach purifies and stores water; it does not require electricity or running water for its operation.

EUREKA FORBES AQUASURE

Eureka Forbes flagship water purification brand, Aquaguard, is virtually synonymous with pure, safe drinking water and continues to be the undisputed leader in the category. Trusted by over 40 million people, it is one of the largest selling water purifiers in the world. Numerous Indian and international accolades have been conferred on it - Super brand, Best Complete Water Solution Provider (UNESCO-Water Digest), Platinum Brand in Asia (Readers Digest) plus an endorsement by the Indian Medical Association. A one stop shop for water purification an expansive range of technologies and solutions that address every type of water quality and purification conditions, it continues to spearhead the evolution of the category. Indeed, as market leaders, we dont just focus on the top end of the market but have made water purifiers available for everyone. Our AquaSure range of water purifiers provides safe drinking water to homes even

without electricity and running water. To cater to the needs of homes and offices and at different price points, we have water purifiers under the Forbes brand available on the retail shelf too.

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 HINDUSTAN UNILEVERS PUR EIT

Boiling water, as a means of purification, is expensive, energy-intensive, and cumbersome. Available storage and candlebased filters do not ensure safety from harmful germs. Given this context, Unilever embarked on a mission to provide safe and affordable drinking water through in-home water purification. PureIt breaks through the barriers of convenience & affordability by providing water that is as safe as boiled water and ensuring complete protection from water-borne diseases. The Pureit innovation addresses one of the biggest technological challenges of the century that of making safe water accessible & affordable for millions. Pureit provides 4 litres of As safe as boiled" water at a running cost of Rs 1 without the hassles of boiling, without the need of electricity or a continuous tap water supply.

KENT RO MINERAL WATER PURIFIER

World's first and only patented Mineral RO Technology Kent proudly offers double purification of RO followed by UV. Kent's award winning water purifiers are suited for all types of raw water. Kent purifiers are trusted by over 1 million customers spread across the country and have an established track record of over a decade in the water purification industry. Kent has its own offices at over 16 locations across India with over 300 channel partners nationwide. Their service network is present at over 300 locations to make sure that our customers experience a continued and trouble free after sales support on their products. Kent offers varied range of products for any application. Be it entry level purifier to technology driven high capacity commercial purifiers. The products have a wide range to suit varied needs of customers and for different types of end usage. Be it water or air purifiers the range is just endless and is competitively priced to suit every pocket.

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SUGGESTED MARKETING STRATEGY

Product: - Tata should diversify their product portfolio by the introduction of non- electric online water purifier for their product which is available with almost all competitors hence it would help them to increase their market share within the industry. Price: - Tata Swach should provide a complementary Swach bulb along with the main product which the customer needs to replace within approx 8 months. This would act as extra added incentive to the consumer. Place: - Tata Swachs main aim will be to get into the rural Indian market where pure water is still far from reality, and try to do well there. The company has also received queries from other countries, specially Africa is interested in such a low-cost, low- maintenance product which does not require energy or running water to operate. Tata Swach could also explore tying up with UN agencies for the supply of this product worldwide. Promotion: - Tata Swach should introduce a Celebrity as Opinion Leader or the Brand Ambassador of the product who would influence the consumers to buy their product. Also they can increase the distributor margin which in turn will invoke the distributors as well as dealers to promote Tata Swach as compared to the competitors. Tata Swach can also collaborate with NGOs to promote their product, like in the case of HULs PureIt it collaborated with the doctors and the product was promoted through the doctors clinic.

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BIBLIOGRA PHY
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. www.tataswach.com www.tatachemicals.com www.eurekaforbes.com www.hul.co.in www.pureitwater.com www.kent.co.in
http://en.wikipedia.org/wiki/Tata_Swach

www.waterpurifiers.in
http://forbesindia.com/printcontent/27112 http://waterfiltersindia.blogspot.in/2011/04/review-of-tata-swach.html

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