FOR THE PARTIAL FULFILLMENT OF THE REQUIREMENT

FOR THE AWARD OF

POST GRADUATE PROGRAMME IN PLANNING AND ENTREPRENEURSHIP

UNDER THE GUIDANCE OF: UNDER THE

SUPERVISION OF:

Ms. CHAVI MATHUR Mr.

RAJESH RAO

SUBMITTED BY:

GAGAN SHARMA

(Batch: July 2009-11)

 (GLOBAL SCHOOL OF BUSINESS)

INTERNSHIP REPORT ON
MARKETING STARATEGIES OF
“CATCH”
PROJECT GUIDE: SUBMITTED BY:

Mr.Rajesh Rao Gagan Sharma

(COMPANY GUIDE) MBA Sem-III

Ms. Chavi Mathur BHARTIDASAN UNIVERSITY

(FACULTY GUIDE) (2009-2011)

COMPANY CERTIFICATE
TO
WHOM IT MAY CONCERN

This is to certify that Mr.Gagan Sharma, a student of GLOBAL SCHOOL OF BUSINESS,

FARIDABAD undertook a project on “ Marketing Strategies of DS Group” at Dharampal
Satyapal Ltd from 1ST June to July 15th, 10.

Mr. Gagan Sharma has successfully completed the project under the guidance of Mr. Rajesh
Sarao. He is a sincere and hard- working student with pleasant manner.

We wish all success in his future endeavours.

Signature with date

Name

Designation

Company name
 CERTIFICATE TO ORIGIN

This is to certify that Mr. Gagan Sharma, a student of Post Graduate Degree in MBA(2009-
11), GLOBAL SCHOOL OF BUSINESS, FARIDABAD has worked in Dharampal Satyapal
Group under the able guidance and supervision of Mr. Rajesh Sarao (AGM), Catch
Beverages Raison.

The period for which he was on training was 7 weeks starting from 1st June to 15th July’ 10.
This summer internship report has the requisite standard for the partial fulfilment of the Post
Graduate Degree. To the best of our, knowledge no part of this report has been reproduced
from any other report and the contents are based on the original research.

Signature Signature
(Faculty Guide) (Student)
 ACKNOWLEDGEMENT

I express my sincere gratitude to my industry guide Mr. Rajesh Rao (AGM), Catch
Beverages Raison, for his able guidance continuous support and cooperation throughout my
project, without which the present work would not have been possible.

I would also like to thank the entire team of the Dharampal Satyapal Ltd. For their constant
support and help for the successful completion of the project.

Also I am thankful to my faculty guide Ms. Chavi Mathur of my institute for her continuous
guidance and invaluable encouragement.

Sign
ature

(Stud
ent)
 Table Of Content
Chapter No Topic

1. Dharmapal and Satyapal group

1.1 Company Profile
1.2 Stirring Saga Of An Enterprise
1.3 About The Plant
1.4 Catch Cola, Lemon and Orange
1.5 Mission Vision Statements

2. Introduction To Mineral Water Industry Of

India
2.1 Bottled Water Industry In India
2.2 Govt. Failure To Address Basic
Services
2.3 Water Resources Over Exploited?
2.4 Bottled water? How Safe?
 2.5 Growing Prospective Of Packaged
drinking Water
Industry

3. Research
3.1 Research Methodology
3.2 Research Process
3.3 Need and Importance Of Study
3.4 Data Presentation , Analysis & Interpretation
4. Major Competitors
5. Target market And Major Segments
6 Marketing Strategies
6.1 Product Range
6.2 Pricing Strategy
6.3 Promotion Strategies
6.4 Distribution Channel
7. Reasons For Company’s Lack Of Interest In
Mineral water Industry
7.1 SWOT Analysis
7.2 BCG Matrix
8. PEST Analysis
9. Conclusion
10. Appendix
11. Bibliography

EXECUTIVE SUMMARY

The current management is dealing with the determination, mantainence, control and
monitoring the level of individual performance toward the attainment of future goals.

Need for the study

To identify the difference between mineral and packeted drinking water.

To study the market of catch on big scale in FMCG.

To compare various parameters of marketing strategies, manufacturing process, technology

adopted, production policy, advertising, collaboration, export scenario, future prospect and
government policies.

To study the level of customer satisfaction.

To study customer buying behavior and factors which influence the purchase decision
process.

To study consumer preferences.

To study the consumer trend in the beverage sector.

OBJECTIVE OF THE STUDY

Every organization has to achieve its organization goals. For this it is very essential for an
organization to know about the view of consumers and their competitive products. This
survey research may be also aimed as to estimate potential buyer for the product. The
objective of the study is as under:-

To identify the difference between market performance of catch beverages.

To compare various parameters of marketing strategies, manufacturing process, technology
adopted production policy, advertising, collaboration, export scenario, future prospect and
government policies.

To study customer buying behavior and factors which influence the purchase decision
process.

To know how the company has been successful in encountering the aggressive marketing
strategies of competitors.

SCHEDULE

The complete project was of 7 weeks. The project has been divided into 2 stages with
approximate time period allotted to each stage. Both the stages along with their approximate
timelines are as follows:

STAGE 1 (APPROX 2 WEEKS)

The study of company’s working profile, previous history and its current position were studied on this
phase.

STAGE 2 (APPROX 5 WEEKS)

The study of the overall working of the management of the company was the first stage. Under this stage
the operating plans prepared and the study and analysis of the products being done. This phase also
constitute the various surveys done regarding that.

SCOPE OF THE STUDY

To study the market attractiveness toward beverage industry and to study the marketing
stratergies of catch.

LIMITATIONS

In spite of my continued efforts to make the project as accurate and wide in scope as possible,
certain limitations are becoming evident while implementing the project. These limitations
cannot be removed and have to be accepted as permanent constraints in implementing the
project.

Some limitations, which have been identified, by me are:

1. Generalizations and calculated assumptions had to be made in some areas while analyzing
the market, due to non-availability of complete information.

2. The segment wise and product wise study of the various product segments and units of the
company have been excluded from the scope of the project due to data and time constraints.
 THE DHARAMPAL SATYAPAL GROUP

COMPANY PROFILE
Dharampal Satyapal Group (DS Group) is more than Rs. 1400 crores diversified
conglomerate, which is committed towards high quality products & credited with several
innovations over last seven decades. The sagacity to weave its business around consumer
needs has conferred DS Group with a distinct value. Efficient capital structure, cutting edge
technology, operational discipline and a widespread distribution network, have together
attributed to enhance ‘Brand DS’, and enabled the organization to deliver continued growth
in all areas of operation.

Its undeterred pursuit for ‘Quality & Innovation’ has led the Company to progress on a path
of growth. The Group has consolidated its position into diversified sectors like FMCG,
Packaging, Hospitality, Rubber thread, Cement and other businesses.

Beginning its journey with Tobacco, DS Group successfully ventured into the arena of Foods
& Beverages, alluring the consumers with a wide range of beverages, spices, and ready-to-eat
snacks under the brand ‘Catch’. While ‘Catch’ Natural Spring Water and its variants continue
getting great response from consumers, ‘Catch’ Salt & Pepper tabletop dispensers hold their
supremacy as India’s firs trotatory table top dispensers. Catch Spices excessively continues to
be connoisseurs’ favorites. The latest products to be introduced under catch brand are Catch
Jal Jeera & Catch Nibu Pani.

In the Mouth Freshener Category, non-tobacco, Rajnigandha rules the market as the world’s
largest selling premium pan masala. ‘Pass Pass’ has created a new product category all-
together as India’s firs tever branded ‘all natural’ non supari assorted mouth freshener.
Taking forward the Indian tradition of eating and serving mouth freshener softer meals,
Rajnigandha, the premium mouth freshener brand, has introduced a mild new flavour,
“Meetha Mazaa- the Indian Mouth freshener”. Reinforcing the emphasis on the quality at all
levels,Meetha Mazaa is revitalizing.

Recognizing the immense potential in the Hospitality Segment, DS Group forayed into this
segment with “The Manu Maharani’ at Nainital, in 2001. The Group acquired the Airport
Hotel at Kolkata. The hotel is currently being revamped and renovated and will soon emerg
eas an International standard destination with Five Star Hotel, a budget hotel & large
Convention Centre, in addition to a sprawling Commercial area. The five star hotel building
projects have also commenced inGuwahati and Jaipur. In addition to the above ventures, land
has been acquired in cities like Udaipur, Shimla, Mussorie, Corbett Park, Manali and Goa
with plans to set up hotels & resorts. With a boom in tourism sector, the group is all set to
emerge as one of the leading players inthe hospitality segment.

Further pursuing its quest for diversification, DS Group has launched colossal projects in the
Packaging sector. DS Canpac Ltd., an ecofriendly revolutionary packaging technology, was
launched in India in association with Canpac – a leading Switzerland based packaging major.
A state-of-the-art plant at Noida offers packaging solutions toother FMCG marketers as well
as exporters of food products. The grouphas also commissioned an ultra modern Flexible
Packaging Unit in Bonda.
A heat resistant latex Rubber thread plant has been set up at Agartala to produce international
quality rubber threads. Latex rubber threads are made from natural rubber applying the most
sophisticated European technology. Following close behind is a first-of-its kind Steel sheets
plant coming up soon in the North East to produce cold rolled sheets, CRCA and galvanized
steel sheets.

In line with its vision of diversification, DS Group has entered the fast growing Cement
Industry. The Project is located at the Khliehriatsub division of District Jaintia Hills in
Meghalaya. The capacity of the upcoming plant will be approximately 1 million tons Per
Annum and will have a captive power plant based on coal. This will be one of the largest
investments on new projects, by the Group.

As a significant step in Infrastructure Sector, DS Group has signed a MOA with state Govt.
of Meghalaya to set up a 240 MW Thermal Power Plant, based on coal.

The group has manufacturing units in Noida, Delhi, Baroitwala in HP, Kullu, Assam and
Tripura. DS Group boasts of World Class Facilities spread across the length and breadth of
the country, to execute its manufacturing processes with full adherence to international
standards of quality. Every stage of manufacturing is monitored with utmost care and
attention.

The company also has a widespread distribution network supported by dealers and retailers.
The group constantly upgrades its strength through dealer network expansion, up -gradation
of production facilities and bringing greater consumer orientation, while maintaining its
commitments to high quality, innovation and consumer value carried forward in all its
diversification endeavours.

DS Group constantly nurtures its responsibility as a committed corporate citizen, by

regarding Corporate Social Responsibility as an integral part of its Business Objectives. The
Company has been working in Assam and Tripura, on a wide range of CSR programmes
ranging from education to health and making tribal and ethnic communities self reliant.
Under the CSR initiatives the group is renovating local schools, setting up a State level
College anddeveloping heritage properties and construction of an eco lodge to beowned and
run by the tribal community. While DS Group pursues leadership in its business spheres; it
simultaneously endeavors to promote common welfare through multidimensional activities to
work towards an all round development tof the society.

DS Group makes constant improvisations in all its manufacturing components, leading to the
making of a perfect product. Be it the sourcing of raw materials, the process of production, or
packaging ofthe final product, R&D remains the crux of DS Philosophy. Quality
andInnovation are the two core values that DS Group subsists on.

In its constant effort towards building trust among its audience, the Group works strongly on
the principles of integrity, dedication,resourcefulness and commitment. A wide array of skills
and substantial depth of experience has not only led the Group to maintain its leadership in its
traditional businesses but has also resulted in gradually gaining market in its relatively
nascent forays.

The Stirring Saga of an Enterprise

In the early 20th century, when trade and commerce had not witnessed the advent of brands
and marketing warfare in India, Shri Dharampalji – the founder of DS Group, set up a small
perfumery shopin Chandni Chowk, Delhi in the year 1929. The urge to create abusiness
around consumer tastes and preferences led Dharampalji to innovate quality products. His
sagacity revolutionized the market ofchewing tobacco and the shop in Chandni Chowk
became renowned not only in Delhi but even amongst the connoisseurs of tobacco inother
parts of India and the world. Blending modernity, technology and tradition, Dharampalji’s
son Satyapalji brought the dawn of a new era an era that saw a revolution. Satyapalji
inherited qualities of high virtues, innovation and aspiration for being the best in the business.
His in-depth knowledge of perfumes honoured him the title of “Sugandhi” (perfumer). He is
credited with blending tobacco with various exquisite fragrances. He is also known for
bringing the element of quality and research hitherto unknown in this category. Under the
able stewardship of Satyapalji, the nation’s first ever-branded chewing tobacco BABA was
launched in 1964 which became an instant success and widely popular in its category. And
what followed later was anarray of premium brands like Tulsi and a host of others which
have established their leadership in their own category and created newmarkets in its wake.
Continuing the fervour of innovation and quality, the Group set new benchmarks in Foods &
Beverages. Innovative tabletop sprinklers changed the way Indian households had been
enjoying salt and spices. Be it Catch spices or Catch Beverages, today Catch stands for
international quality and convenience. Mouthfresheners like Rajnigandha and Pass Pass
created new offerings and established new categories. The Group has also ventured into a
rapidly growing hospitality sector with extensive five star properties in thelarger cities and
boutique & heritage properties at tourist destinations.
The Group has also successfully ventured into Packaging, Rubber Thread, Steel in the last
few years. Since the launch of BABA, the Group has never looked back, reaching for
milestones year after year.
Thus, evolving from a single product to multiple brands, DS has successfully woven over
eight decades legend of innovation andenterprise. And the quest for innovation
continues……..

Establishing Benchmarks with Innovative First -

1) First to offer saffron flavoured chewing tobacco in the world.

2) First to launch branded chewing tobacco in India in metal

packaging

3) First and only chewing tobacco company in India to get ISO

9001:2000 certification

4) First to introduce various kinds of spices in one-time use

packaging

5) First to launch free flowing salt in revolutionary table top rotatory

dispensers in India

6) First to introduce 100 per cent biodegradable, composite cans packs which are pilfer proof,
rust proof and leak proof using brine and through vaccum evaporation process for food
products

7) First to introduce electronically beaten finest malleable silver

foils in India.
8) First in India to bottle natural spring water which has been
awarded NSF certification from FDA, US : a hallmark of quality
and purity

9) First to introduce soda processed with natural spring water

10) First to introduce zero calorie tonic water

11) First to launch 100% herbal mouth freshener - Pass Pass

ABOUT PLANT

This plant is situated in the beautiful valley of kullu manali,being surronded by a beautiful
environment brings extra charm to the plant. The plant is situated in Raison near the bank of
river beas, it is 20 km from Kullu airport and is 30 km from Manali. This plant has begun its
working in 1999 since then its providing significant role in the market share of the DS group.

This plant has two units which constitute around 100 sq m of area. Mr Salfraaz Husaain is the
unit head of this plant. Unit- 1 is related to the water segment and Unit-2 is related to the
beverage segment. Catch beverages and water comes in 250ml, 500ml, 1000ml and in
1500ml packings.

The plant has been divided into two units

Unit -1 comprise of water segment whose main product is catch mineral water and rohtang,
catch is the main product of this unit which is being sold in north india, as catch is being
targeted for high class hence Delhi NCR constitute its main market. Where as rohtang is
being restricted inside Himachal Pradesh.

Unit- 2 comprise of catch cola, catch lemon and catch orange this is a growing segment of
catch and its manufacture have begun arround 3 years ago. This segment can be threat for the
established ones in future due to its taste and flavour and various health issue which this plant
provides as the management says.

The hierarchy of catch Company is as follows.

This plant has around 175 employees. As being in the hilly area it is providing employment
to the people which is certainly helping them to improve their living and providing them an
alternate career option too

CATCH COLA, LEMON AND ORANGE

These are the innovation of catch in terms of flavour as these are being prepared by the
mixing of various ingredients. These are the latest product of the catch and have started
sharing space with the established one, as it is being new to the market it has miles to go.

WORKING

Working begins with the manufacture of bottles which consists of following stages;

Bottle phase

1) In first stage pre form is being put into microwave. (Pre form is being brought from
somewhere from Chennai)

2) After this the pre form is being moulded and it depends upon the size of the bottle which
is to be prepared.

3) After this the levelling is being done and after that they are being passed from the heater.

4) In next step bottle is being taken to the filler to be filled by the liquid.

Liquid phase

1) There are two syrup containers for the syrup of 5000lt capacity which consists of sugar and other
ingredients. (Sugar for the syrup is being brought from the kangra and Punjab)

2) Water for the purpose is being filtered by the micron filter.

3) After this the water and syrup is being mixed and is being taken to the filler where it is being
filled in the bottle.

Filler
It is a place where liquid solution is being filled in the bottles.

Sensors

After this the bottles is being passed to the sensors where defects in the bottles is being
detected.

Oven

At last the bottles is being passed to oven where the bottles are finally packed.

VISION
To be a leading quality and innovation driven global conglomerate.

MISSION
We are constantly striving to achieve excellence in all our endeavour’s to create sustainable value for
our stakeholders & the community at large.

OWNERSHIP
This is our company we accept personal responsibilities and accountability to meet business
needs.

PASSION FOR WINNING

We all are leaders in our area of responsibility, with a deep commitment to deliver results.
We are determined to be the best at doing what matters most.

PEOPLE DEVELOPMENT

People are our most important asset. We add value through result driven training , and we
encourage & reward excellence

CONSUMER FOCUS

We have superior understanding of consumer needs and develop products to fulfil them
better.
 TEAM WORK

We work together on the principle of mutual trust & transparency in a boundary less
organization. We are intellectually honest in advocating proposals, includes recognizing
risks.

INOVATIONS
Continuous innovations in products & processes is the basic of our success

INTEGRITY
We are committed to the achievements of business success with integrity. We are honest with
consumers, with business partners and with each other.
INTRODUCTION TO THE BOTTLED WATER
INDUSTRY OF INDIA
Bottled Water Industry in India

Water Shortage and Health Awareness Driving Bottled Water Consumption in

India. The Indian packaged water business is estimated at around Rs 2,500 crore
with a growth rate of close to 35 per cent. While India ranks in the top 10 largest
bottled water consumers in the world, its per capita per annum consumption of
bottled water is estimated to be five litres which is comparatively lower than the
global average of 24 litres. Today it is one of India's fastest growing industrial
sectors. Between 1999 and 2004, the Indian bottled water market grew at a
compound annual growth rate (CAGR) of 25 per cent - the highest in the world.
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. Leave alone the
metros, where a bottled-water manufacturer can be found even in a one-room shop,
in every medium and small city and even some prosperous rural areas there are
bottled water manufacturers.
In Mumbai analyse show that the consumer, product, channel
trends, key growth areas, target groups and the overall market
influences of aqua vita (which some social activists and even film-
makers contend will trigger off the next war between the haves and
the have-nots).

Bottled water or the packaged water category, estimated to be over

Rs 1,500 crore (not including the other smaller regional brands,
which according to the Bureau of Indian Standards are more than
1,800 in number), is "witnessing an unprecedented amount of
action."

In other words, domestic companies Parley, United Breweries,

Tata’s, DS Foods and multinationals PepsiCo and Coca-Cola, the
world's largest aerated drinks maker, are all "battling for leadership"
in the rapidly growing packaged water market in India. As things
stand, food and beverages (not to speak of tobacco) account for the
largest consumption categories (40%) in India, which has emerged
as one of the fastest growing economies in the world with about 8%
annual GDP growth.

Bisleri (the current market leader) was the first-of-its-kind packaged

water brand in the country when it was launched in 1967. It has now
made a foray into packaged natural spring water, a category which
has been witnessing exponential growth, in double digit figures,
over the past couple of years. It must also be noted that India was
the first market outside the US to have PepsiCo's Aquafina launched
in 1999 when the market was just beginning to grow.

Coca-Cola's $4.1 bn global acquisition of the US-based vitamin

water brand Glaceau (formally known as Energy Brands Inc) to
expand its non-carbonated beverage line made headlines, even as
the Tata group which agreed to sell its 30% stake to Coke by the
year end, had cash registers ringing with its acquisition of mineral
water brand, Himalayan. few years back, Tata Tea acquired the
Mount Everest Mineral Water Company that manufactures the
Himalayan brand of spring water ( a 44% stake for Rs 210 crore),
making it the largest acquisition of a packaged water firm in the
domestic market.

In India, the per capita bottled water consumption is still quite low -
less than five litres a year as compared to the global average of 24
litres. However, the total annual bottled water consumption has risen
rapidly in recent times - tripling between 1999 and 2004 - from
about 1.5 billion litres to five billion litres.
 It must also be noted that the rise of the Indian bottled water
industry commenced with the economic liberalisation process in
1991. “The market was virtually stagnant until 1991, when the
demand for bottled water was less than two million cases a year.
Since 1991-1992, it has not looked back, and the demand in 2004-
05 was a staggering 82 million cases."
Bottled water is sold in a variety of packages: pouches and glasses,
330 ml bottles, 500 ml bottles, 1 & 5-litre bottles and even 20-50-
litre bulk water packs.

The bottled water business is divided broadly into three segments in terms of
cost:

Premium natural mineral water,

Natural mineral water and

Packaged drinking water.

Premium natural mineral water includes such imported brands as Evian, San
Pellegrino and Perrier, which are priced between Rs 80 and Rs110 a litre.

Natural mineral water brands like Himalayan and the indigenous Catch brand
owned by DS Foods Ltd are priced around Rs 20 a litre.

Packaged drinking water is the biggest segment and includes brands such as Parle
Bisleri, Coca-Cola's Kinley and PepsiCo's Aquafina which are priced in the range
of Rs10-12 a litre.
The total annual bottled water consumption in India had tripled to billion liters in
2004 from 1.5 billion liters in 1999. Global consumption of bottled water has
crossed the mark of 200 billion liters in 2009.

Bottled water is sold in a variety of packages: pouches and glasses, 330 ml bottles, 500 ml
bottles, 1 & 5-litre bottles and even 20-50-litre bulk water packs.
Government failure to address basic services
Millions of people, both in rural and urban India, suffer from inadequate or no tap water
supply. Even some parts of Mumbai, the country's financial capital, get a mere two hours of
daily water supply. The city's Virar suburb gets 45 minutes. So bottled water is much in
demand by residents - even though the businesses profiting from the sales are thriving from
access to public water sources.
Bottled water fills a void created by government failure to address basic services, Peter
Gleick of the Pacific Institute writes in its World Water report. "In many parts of the world,
tap water is not available or safe to drink," writes . "In these regions, the failure of
governments to provide basic water services has opened the door to private companies and
vendors filling a critical need, albeit at a very high cost to consumers." The institute reasons
that governments should tap into spending on commercial water by consumers to secure
funds to provide safe water at fraction of the cost.
Gigi Kellett, US national director of the Think Outside the Bottle campaign, argues that
demand for bottled water is due to industry creating "a market by casting doubt on the quality
of tap water, when in fact bottled water is subject to far less scrutiny and often comes from
the same source".

Water resources over-exploited

The majority of the bottling plants are dependent on groundwater. They create huge
water stress in the areas where they operate because groundwater is also the main source - in
most places the only source - of drinking water in India.This has created huge conflict
between the community and the bottling plants.
Private companies in India can siphon out, exhaust and export groundwater free because the
groundwater law in the country is archaic and not in tune with the realities of modern
capitalist societies. The existing law says that "the person who owns the land owns the
groundwater beneath". This means that, theoretically, a person can buy one square metre of
land and take all the groundwater of the surrounding areas and the law of land cannot object
to it. This law is the core of the conflict between the community and the companies and the
major reason for making the business of bottled water in the country highly lucrative.
Take for instance the case of Coca-Cola's bottling plant in drought-prone Kala Dera near
Jaipur. Coca-Cola gets its water free except for a tiny cess (for discharging the wastewater) it
pays to the State Pollution Control Board - a little over Rs.5,000 a year during 2000-02 and
Rs.24,246 in 2003. It extracts half a million litres of water every day - at a cost of 14 paise
per 1,000 litres. So, a Rs.10 per litre Kinley water has a raw material cost of just 0.02-0.03
paisa. (It takes about two to three litres of groundwater to make one litre of bottled water.)
On April 7, more than 1,500 villagers defied a police cordon and marched to Coca-Cola's
bottling plant in Mehdiganj village, Varanasi, in Uttar Pradesh state, demanding that the
company immediately shut down its bottling plant. In January, the New Delhi-based Energy
and Resources Institute (TERI) advised Coca-Cola to shut a bottling plant in the drought-
stricken state of Rajasthan. India's Ministry of Water Resources has ranked 80% of ground
water resources in Rajasthan as "over- exploited" and nearly 34% resources as "dark/
critical", the gravest ranking across the country.

Bottled Water: How Safe?

The bottled water industry has spent billions over the past decade to sell you on the idea that
bottled water is better than tap water. Well the short answer is they are both unhealthy. One
of the most ironic parts of the bottled water tragedy is that the water bottling industry gets the
water free, filters it, bottles it and sells it back to us at 1,900% profit. The ironic part is that
tap water is legislated to be 7.0 pH neutral. They first dump a TON of chlorine in the water
to kill off all the bad bacteria, this makes it highly acidic.
In India around 100 companies sell an estimated 424 million litres of bottled water valued at
around Rs 200 crore in the country annually . Most bottlers claim that their water is 100 per
cent bacteria-free and contains minerals
that make it tastier and healthier. But is the water in these bottles really safe to drink? Do they
conform to international or national standards?
To find out, the Ahmadabad-based Consumer Education and Research Society (CERS), an
independent non-profit institution with a sophisticated product-testing laboratory, recently
carried out a detailed study on 13 major brands of bottled water available in the country. The
national brands -- Bisleri (separate samples were taken from their units in Bangalore,
Ghaziabad, Calcutta and Baroda) and Bailley (Mumbai and Surat) -- were selected on the
basis of their dominant position in the overall market. Bisil (Mehsana), Golden Eagle
(Chennai), Aquaspa (Mumbai),Saiganga (Ahmednagar), Nirantar (Thane), Trupthi (Chennai)
and Yes (Nadiad) were included because of their regional popularity. To conform to
international standards for such testing, 21 bottles of each brand were
tested in the CERS laboratory against "analytical" and "sensory" parameters as well as for
"microbiological" contamination. To ensure fairness, the results were sent to the individual
companies for their comments.
So how safe is bottled water? Not that safe, says the CERS survey. As many as 10 of the 13
brands had foreign floating objects in clear violation of norms. None of the brands tested was
free from bacteria although the consolation is that they were not of the harmful kind. Two of
the big brands contained toxic heavy metals much higher than permitted levels. The term
"mineral water" is misleading because our laws do not stipulate the minimum mineral content
level required for water to be labelled as such. All this from a sector that is flourishing
because of the public fear that water supplied by civic bodies is impure.
Growing Prospects for Packaged Drinking Water Industry

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 most attractive 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 water
market 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 beverage market 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 -- Parle'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

RESEARCH
METHODOLOGY
RESEARCH METHODOLOGY

Primary research objective

To determine the factors influencing the consumer decision while buying mineral water.

Secondary research objective

➢ To determine the product attributes influencing purchase decision of mineral

water brands.
➢ To determine the reasons for consuming various mineral water brands.
➢ To determine the most preferred SKU(quantity) in mineral water category.
➢ To determine the most preferred channel in the mineral water category.

Data which research plans to generate

Factors influencing the choice of mineral water over other beverages.

Factors influencing choice of a particular mineral water brand.

Value of Information to Management

This report aims to generate information on various factors influencing consumer decision
while purchasing a mineral water. Companies can utilise this information for identifying the
awareness levels of their respective brands in the mineral water category. Also companies
can evaluate their positioning and promotion strategies based on the factors influencing the
choice of a particular mineral water brand. Companies can also utilise the factors influencing
the choice of SKU for managing their portfolio of different SKUs in the mineral water
category. The information on factors influencing the choice of a channel can be used to focus
on the growing channels and also in managing existing channels. This report also contains
broad based trends on consumer profile, awareness levels, usage patterns and mineral water
category as a whole which can be utilised to make inferences about the future.

Research Methodology Used

Information sources

Information has been sourced from namely newspapers, trade journals, industry portals
and through access to many databases on net.
 Sampling:

It denotes the number of elements to be included in the study. The sample size chosen is 100. The
Questionnaire has been personally filled by the customers in hand to get feedback on the

criticalities.

Measurement and Scaling Procedures:

We have used Itemized rating scales like Likert scale in order to rate the choices for purchase
considerations. Also, we have used rank order method wherein, consumer is asked to rank the
products.

Data Collection

The data used in the research is of two types Primary Data and Secondary Data mentioned as
follows:

a. Primary Data:

Primary data has been collected through interviews and survey method. The data is collected
from the customer point of view, and has been checked for the privacy of the respondents or
confidentiality has been maintained wherever required.

b. Secondary data:

Secondary data will be collected from documentary and multiple sources such as:

➢ Internet articles and web references

➢ Internal data of the company
➢ Various trade journals

Data Analysis Procedure

The analysis methods include the following:

Historical Trend Analysis, Judgmental Forecasting and Cause and Effect Analysis. Usage of SPSS
software has been made for the purpose of drawing tables, analyze the data, graphs etc to depict the
picture of the study under consideration.
 Research Process

Need and importance of the study

Catch is a very well known brand and has a reputation for its quality products. Yet, the catch
beverages are not able to generate the revenue as they should. This may be due to reasons such as less
promotion, high cost, hard competition, or any other factor. The investment on promotional schemes
has been increasing tremendously because it has become the most important factor in driving up the
sales volume and trial of new products. These huge investments in trade promotions need to be
effective. Relatively small improvements in promotion effectiveness can significantly impact
performance, and by truly understanding the drivers and market impact of promotions, consumer
products manufacturers can achieve major competitive advantages.

DATA PRESENTATION, ANALYSIS AND INTERPRETATION

Q 1) Are you aware of any of these following Mineral water Brands?

A) Bisleri B) Kinley C) Catch D) Aquafina E) All

Response of the respondents:

A B C D E

7 4 6 3 62

Interpretation:

The graphical representation of the table shows that out of 82 respondents

➢ 76% were aware of all the brands

➢ 9% were aware of bisleri
 ➢ 5% aware of only kinley
➢ 7% aware of only Catch
➢ 4% aware of Aquafina
Q 2) Are you a consumer of a Mineral water?
A) Yes B) No

Response :

A B

79 3

Graphical Representation:

Interpretation:

The graphical representation of the table shows that out of 82 respondents

➢ 96% were consumer of mineral water

➢ 4% were not consumer of mineral water
Q 3) From where did you come to know about these mineral water brands?

A) TV ads B) Print media C) Shop keeper

Response of the respondents

A B C
67 7 8

Interpretation:

The graphical representation of the table shows that out of 82 respondents

➢ 82% come to know about these brands through TV ads

➢ 8.5% through Print Media
➢ 9.5% through Shopkeeper
Q 4) Have you seen the TV advertisement of mineral water?
A) Yes B) No

Response :

A B

77 5

Graphical Representation:

Interpretation:

The graphical representation of the table shows that out of 82 respondents

➢ 94% seen the TV ad of mineral water

➢ 6% haven’t seen the ad.
Q 5) What do you see in the ad which influence you to buy the product?
A) Price B) Quantity C) Quality D) Brand E) Other factor

Response:

A B C D E

30 4 17 16 15

Graphical Representation:

Interpretation

The graphical representation of the table shows that out of 82 respondents

➢ 36.58% were influenced to buy the product on the Price factor

➢ 4.87% were on Quantity factor
➢ 20.73% were on Quality
➢ 19.53% were on brand
➢ 18.29% on other factors.
Q 6) Rank the following according to the importance you give to them while purchasing
Mineral water.
Brand Price
Quality Packaging
Brand Price Quality Packaging Quantity
Quantity
17 21 14 15 15

Response as
ranked first:
Graphical Representation:

Interpretation

The graphical representation of the table shows that out of 82 respondents

➢ 21% give importance to the brand of Mineral water while purchaising.

➢ 26% for price & 17% go for quality
➢ 18% each go for packaging & quantity

Q 7) when do you consume the Mineral water?

A) When you are out of station B) During the journey

C) Rarely D) Daily E) Never

Response:

When out During Rarely Daily Never

of station journey
 35 21 15 8 3

Interpretations

The graphical representation of the table shows that out of 82 respondents

➢ 43% use when they are out of station

➢ 26% on journey
➢ 18% rarely consume
➢ 10% consume daily
➢ Rest never consumed
Q 8) Do you know the difference between mineral water and packaged drinking water?

Yes No

Response:

Yes No

29 53

Interpretation

More than 60% of people do not know the difference between packaged &mineral water.
Q 9) Does price of a particular Mineral water brand makes you to shift to others?

Yes No can’t say

Response: Yes No Can’t say

39 31 12

Graphical Representation:

Interpretation

The graphical representation of the table shows that out of 82 respondents

➢ 47% change their demand for a brand if they find price to be more than what they want to
pay
➢ 38% do not find price as a factor to change to other brand
➢ 15% can’t say .
Q 10) You prefer only one brand

Brand keeps on changing

If change, why?
A B C D E
A) Price constraints
21 12 19 5 8
B) Brand doesn’t matter

C) Non availability of a particular brand

D) New product launched/experiment

E) Others
Graphical Representation:

Interpretation

The graphical representation of the table shows that out of 82 respondents

➢ 21% are loyal towards their brand

➢ Rest all change their brands from time to time. Out of which 26% change due to price and
23% due to non-availability of the brand which they want.
Q11) What influenced you to purchase the mineral water bottle you last time purchased?

A) Its brand name

B) Display at the shop

C) The company name

D) Its advertisement

E) Packaging

F) Shopkeeper

Response:

A B C D E F

27 16 7 12 5 15

Graphical Representation:
Interpretation

The graphical representation of the table shows that out of 82 respondents

➢ 33% of the total respondents are influenced by the brand

➢ 19% get influenced due to the display at the shops & other 18% are influenced by the
shopkeeper.
➢ 14% by advertisement and rest get influenced by other reasons
 QUESTIONARE

Q 1) Are you aware of any of these following Mineral water Brands?

A) Bisleri

B) Kinley
C) Catch
D) Aquafina
E) All

Q 2) Are you a consumer of a Mineral water?

A) Yes B) No

Q 3) From where did you come to know about these mineral water brands?

A) TV ads B) Print media C) Shop keeper

Q 4) Have you seen the TV advertisement of Mineral water?

A) Yes B) No

Q 5) What do you see in the ad which influence you to buy the product?
A) Price B) Quantity C) Quality D) Brand E) Other factor

Q 6) Rank the following according to the importance you give to them while purchasing
Mineral water.
Brand Price
Quality Packaging
 Quantity
Q 7) when do you consume the Mineral water?

A) When you are out of station

B) During the journey C) Rarely

D) Daily E) Never

Q 8) Do you know the difference between mineral water and packaged drinking water?

Yes No

Q 9) Does price of a particular Mineral water brand makes you to shift to others?

Yes No can’t say

Q 10) You prefer only one brand

Brand keeps on changing

If changes, why?

A) Price constraints

B) Brand doesn’t matter

C) Non availability of a particular brand

D) New product launched/experiment

E) Others

Q11) What influenced you to purchase the mineral water bottle you last time purchased?

A) Its brand name

B) Display at the shop
C) The company name
D) Its advertisement
E) Packaging
F) Shopkeeper
Major Competitors

The categories of bottled water in India are Packaged Natural Mineral Water and Packaged
Drinking Water .Bottled water industry, colloquially called, the mineral water industry, is a
symbol of new life style emerging in India. The packaged drinking water in India, which is
estimated at Rs.850 crores with over 200 brands floating in the market, most of which have
restricted territorial distribution. This is a growing market in India as quality consciousness
among the consumers is on the rise. The bottled water market is growing at a rapid rate of
around 20%.At this growth rate, the Rs 7000million per year market is estimated to overtake
the soft drinks market soon. Multinationals, Coca-Cola, Pepsi, Nestle and others are trying to
grab a significant share of the market. There are more than 180 brands in the unorganized
sector. The small players account for nearly 19% of the total market. The per capita
consumption of bottled water in India is less than half a litre per year, compared to 111 litres
in France and 45 litres in the US. These points to the future potential beyond the high growth.

Major Players with their brands include Parle Export which introduced Bisleri in India 25
years ago, Parle Agro with Bailley, Godrej Foods with its Golden Valley, Coca-Cola with
Kinley, PepsiCo with Aquafina, Nestle India with Perrier, Mohan Meakins and SKN
Breweries entered the market with Golden Eagle and Penguin mineral water, respectively.
Nonetheless, Bisleri and Bailley, both of Parle Origin, enjoy about 50% market share and has
become almost generic with the product. The premium bottled water market in India has
brands like Evian, San Pelligrino, Perrier.
Bisleri, which pioneered the packaged drinking water business in India, catering to
consumers need to have hygienic drinking water while on the move or even at home, is
literally changing its colours and going for a makeover. The brand that was till now marketed
as packaged drinking water will now be available in a natural avatar. The natural water
segment, which accounts for about 5% of the total bottled water segment, is expected to grow
by leaps and founds as health awareness and disposable incomes rise. The bottled water
industry is worth Rs. 1,000 crore in India and is growing at 40% per annum. It is projected to
reach Rs. 5,000 crore by 2010. Thus any entrepreneur may go into this field, will be
successful which is attracting various people into this industry thus adding to the competition.

Market share-
Bisleri Of Parley Leads the Market with 40% of the Market shares Bisleri’s turnover has
multiplied more than 20 times over a period of 10 years and the average growth rate has been
around 40% over this period. Presently the Company Has 8 plants & 11 franchisees all over
India. Overwhelming popularity of 'Bisleri' & the fact that they pioneered bottled water in
India, has made them synonymous to Mineral water & a household name.

Kinley Of Coca Cola International Acquires 20-25% of Market Share Followed by Aquafina
of Pepsico Ltd. All the other Brands enjoy 20-25% of Market Share In which catch’s Market
Share Are estimated to be about .7%

Target market and major Segments

Catch’s target market has basically been the upper segment. Basically
the “high class society“ the elite group of people. It has created its own
segment of consumers which are concerned with quality of the product
rather than its price unlike the buying behavior of the Indian consumers.
The company has never compromised with quality of its products and
plans to provide the best quality. Catch brand has always been known for
its quality products and BAIS has also approved it making “Catch” as the
only mineral water industry to be able to match the American standards
of quality whereas many major players like Major Players like Parle Agro with
Bailley, Godrej Foods with its Golden Valley, Nestle India with Perrier, Mohan Meakins and
SKN with Golden Eagle and Penguin mineral water, respectively etc have not been
able to do so. During my work at the Mineral water unit of this Company I
was astonished by the efforts that the company put into maintenance of
its quality standards. Each bottled passed through various quality checks
to be precise with the quality of their products. Thus when one is buying a
product of catch he can be rest assured that he is buying Quality product
as the company never compromises with the Quality.

Major segments are basically those people those who consume the
products offered by the company regularly and those areas where
demand is higher than the other area .Use of mineral water gradually increase in
India due so shortage of pure hygienic water and also increase the knowledge of water
because pathogenic micro organisms, which are main reason of stomach problem. On this
reason a part of the society stored so use safe drinking water i.e. mineral water. There is
increase full life, major of the working group has to take travel from one place to another
place, by this time they are now habituate to use mineral water. Major of the tourists are only
habituated to take safe drinking waters. Packed bottled mineral water is the only main
resources in our country to safe drinking water. On that base, it can be concluded that scope
of mineral water will be much more increased in the future. As suggested by our market
research also 42.68 %of people that consume mineral water are people living out of station
thus being the major segment of consumers followed by people who travel regularly 25.6%
as shown below

Marketing Strategy
Market positioning-
Product range
Total range of products offered by the company includes-
• Catch mineral water
• Catch soda
• Catch flavored water in peach , black current and green apple flavor
• Catch soft drink in Cola , orange and lemon flavor

And company offers their products in different bottle sizes these includes:

• 200 ml (24 bottles per pack)

• 500 ml (12 bottles per pack)
• 1000 ml (12 bottles per pack)
• 1500 ml (9 bottles per pack)
Pricing Strategy-
In any food business, in order to be competitive, one have to be reasonably priced. No
consumer will pay you for the extra fillers. All the world-class packaging and quality that the
company is providing is value addition to the money the consumer pays. But the consumer
will not compensate for these extra efforts that you take. When company sells water, they are
just not selling bottles for storing in the fridge. The company is starting a new concept in
India to crush and throw used bottles and cans.

Low cost product-

Catch has introduced a new mineral water product in the market named
“Rohtang”. This product has been placed at low price (15 Rs) to compete
with other players like Bisleri, Kinley and Aquafina etc in this segment the
price of catch mineral water has also been brought down to Rs 35 to be
able to increase the sale of the product. As discussed earlier also is this
report that catch brand is focused on providing quality product and has
main focus on the elite group of the society hence it never competes on
price.

Promotion strategies-
The company isn’t spending a lot on promotion of the mineral water industry. Company is
not that much interested to sell catch mineral water yet and has main focus on its Tobacco
industry which has been promoted heavily, the company has been mostly promoting “pass
pass” whose commercials was seen all through the ongoing Asia cup and also during the half
time breaks and pre & post match shows during the soccer world cup 2010 whereas TV
commercials of catch mineral waters are rarely on air and one may say are seen once in a
blue moon.

Trade promotion-

Catch gives incentives to retailers by offering them free samples and good margin by this
way retailers push their products in the market and for this reason its seen most often in the
market and this aids to the good sale in market because as the experts say “Jo dikhta hai who
bikta hai” means product which is seen more in the market is sold more.

Other than TV commercials and trade promotion various promotion strategies of the
company includes –
 • Sponsorships with different colleges and school cafes and sponsors their sports
events and other extra curriculum activities to increase the brand awareness.
• Free samples are being given in various trade fairs in Himachal, Delhi and NCR
region and banners etc are put up during various festivals etc.
• Free gifts are also being given under various schemes of this group which are very
popular among household women and children’s.
• Buy two get one free offers
• Coupons
• Special sale prices
• Rebates
• Sweepstakes
• Give-aways

Distribution Channel-

Catch company makes two type of selling-

Direct selling- In direct selling the company transports their products

directly to the shopkeepers by means of their own transport company
owns 18 trucks for this purpose. In this type of selling the profit margins
are more as no margin is to be given to the distributors.

The company mainly uses direct selling to sell its product to various hotel
chains , restaurants and embassies.

Indirect selling

They have their whole sellers and agencies to cover all areas,
the profit margins lessen due to this but it practically very
difficult for the company to cover all the region by their own so
the company through its whole sellers and distributors ensures
that their product is widely available to the customers.

Facilitating the product by infrastructure-

For providing their product in good manner the company has provided infrastructure these
includes-

• Vizi coolers
• Freezers
• Display racks
Advertisement-

• Print media
• Pos material
• TV commercials
• Billboards and holdings

The company has not been so much involved in selling it through TV commercials as the
company is not that much interested in selling its product yet hence mostly advertising it via.
Putting up big Billboards and holdings mostly during fairs and festivals.

Pos material means point of sales material this includes posters and stickers display in stores
and different areas.

TARGET MARKET
When the marketing strategy is developed, one has to determine with which customer group
this would be most effective. For example, a "better value for the money" may be more
appealing to the "family" consumer group while a "wider distribution" would be more
attractive to consumers who travel. Remember that different market strategies may appeal to
different target markets. Therefore, the collected data ahs to be applied to choose the
combinations that will work best.
The market is defined by different segments. Some examples are:
• Geographic: Specialize products to customers who live in certain neighbour hoods or
regions, or under particular climates.
• Demographic: Direct advertising to families, retired people, or to the occupation of
consumers.
• Psychographic: Target promotion to the opinions or attitudes of the customers
(political or religious, for example).
• Product benefits: marketing should be aimed to emphasize the benefits of the product
or service that would appeal to consumers who buy for this reason in particular (low
cost or easy access, for example).
• Previous customers: those groups of people should be identified and promoted who
have purchased the product before.
The company has very different brand messages for each of their brands. This helps the
customers in clearly identifying each brand from the other. When company talk of Catch, it’s
clearly indicating food and beverages, and not about tobacco or paan masala or for that
matter paan masala containing tobacco. When it comes to Pass Pass, one’s dealing with an
Indian natural herbal mouth freshener that has no supari, it’s a grandmother’s recipe. A
mouth freshener is completely different from a Rajnigandha. It cannot be the same.
Rajnigandha has supari while Pass Pass has no supari. So consumers should know exactly
what they are consuming. It is a very clear distinction on the basis of content of the product,
price points and value that one can derive. This is what we mean by brand building—holistic
communication. Still one may say that water is available everywhere in India. Why should
anybody buy water then? Because in India, we all are becoming health conscious and when
you are bothered about your well-being, you should not look at Rs 12, you should look at Rs
25. So it is up to you whether you want to invest for that good health. Moreover, company is
targeting a different audience altogether with Catch water. The company is targeting
embassies; five-star hotels, resorts and clubs where it matters to be health conscious and
people are ready to pay the price to be healthy. So it is a niche that the company is looking at.
Catch Clear is in great demand and so is Club Soda. These brands are doing well in the niche
segment we had targeted. So target market for these brands is the young and health-conscious
people who are moving up with a global perspective.

Swot Analysis of the company-

Strengths-
• Brand famous for its Quality products.

• Recognised by American First in India to bottle natural spring water which has been
awarded NSF certification from FDA, US : a hallmark of quality
and purity.

• First to introduce soda processed with natural spring water

• Company provides zero calorie tonic water

• The only company to sell flavoured mineral water

• Mineral water has a natural sweetener and has zero calories

Weakness-
• Losses due to transport expenses.
• Less market for mineral water industry at the operating area i.e. Himachal Pradesh
 • Company not that much interested in selling the product yet.
• Un-experienced management and unskilled labour
• Unavailability of other raw materials other than “water”
• Company brand not known to people yet in mineral water industry (unlike catch
masala and Pass- pass)
• Not much efforts put into advertisement
• There is no classification called natural spring water; so, everybody calls it mineral
water.

Opportunities-
• Huge opportunities in Mineral water industry.
• Lesser competition or say lesser or nil Cut throat competition
• Company is still new therefore huge growth opportunities
• Very less company sell mineral water hence huge growth opportunities for company
in this segment.
• Railway, as according to a estimate railways ordered 10,000 cases (of 12 bottles each)
a day in 2009

Threats-
• Tata is an emerging threat in packaged mineral water industry with its purchase of
“Himalaya” mineral water plant.
• Bisleri enjoys the highest market share and is planning to increase it by introducing
flavoured mineral water.
• Aggressive selling by Coke and Pepsi
• Many companies have realised the market potential and are entering into this business
• Local companies are posing a huge threat as they are selling their product at prices
lesser than the market price
• Govt policies and change in taxation and other policies
BCG Matrix for the company

STARS Question marks

• Rajnigandha • Catch mineral water

• Tulsi • Catch cola
• Pass pass

Cash Cows Dogs

• Catch masala •
•
Reasons for lack of interest in mineral water industry-
The packaged drinking water industry is growing and there are huge investment
opportunities in this segment. But still company is not investing that heavily in this segment
and one realises somewhat layback nature of the company in this segment. The reasons
behind these are companies policies and ability to foresee the future it’s sort of scenario
planning. Unlike any other company the DS group has never issued IPO’s hence no external
funds are available to the company one may understand the reasons for this attitude by
applying the basic management concepts of product life cycle and BCG matrix

SATURATION

MATURITY

DECLINE
 GROWTH

INITIAL PHASE

Product life cycle-

The reason why the company is yet not that much interested in investing in its mineral water
industry quite yet can be explained by the product life cycle concept

The company is flourishing and doing well in its tobacco industry and also in its rubber
industry. Both the companies are in their maturity phase and would soon reach its saturation
stage where companies profits would become stable here the companies market shares might
remain stable but there would be no growth stage which would lead to reduction in profits
and the company will reach its decline stage. Like death is inevitable for every living being
likewise Product life cycle is also a inevitable part of every companies life. Hence as we have
seen earlier in the BCG matrix the company may then sell off its tobacco or rubber business
and invest in the other sectors like mineral water industry. This is all a part of companies
policy and planning for the future if the company was to run for a long period.

It allows company to focus and invest properly in one sector as it’s really difficult and risky
also for a company to invest heavily into all of its business. The market for mineral water
industry is also developing in India as Indian consumers are becoming more rational in their
approach towards are product and is also becoming more smart and educated. People are now
becoming more conscious about their health hence the market for catch mineral water will
only grow in the future.
 PEST ANALYSIS OF CATCH
There are four variables, which we will discuss in our report, they are:

POLITICAL VARIABLES

Political variables Strongly Some what No Effect Some what Strongly

Effected Effected
Effected − Effected
++ −
+ −
Effects of government Yes
regulations &
deregulations
Effect of Yes
environmental
protection laws if any
Import and export NE
regulations
Effect of changing NE

political conditions

Conclusion Of Political Analysis:

As far as the above table is concerned it could be seen that there are very little chances of
“political variables” to effect the catch’s production and selling behavior.
 In the “political variables” most of the things are related to Governmental activities. So, they
don’t leave any good or bad impact in the Industry of catch.

And there are some exceptional things like: “environmental protection laws” they some
what effect the industry of Catch. From last four-five years Government has ben really very
much conscious about the environment. But after making the adjustments in plants and
applying the proper way of wastage the chances of being affected by the “protection laws”
are going to be diminished.

So “political conditions” are over all leave neutral effects on catch’s industry.

ECONOMICAL VARIABLES

Economical Variables Strongly Some what No Effect Some what Strongly

Effected Effected
Effected − Effected
++ −−
+ −
Do soaring interest rates YES
make business task any
harder
Any effect due to NE
inflation

Conclusion Of Economical Analysis

It could be seen that “economical variables” highly affects the Catch’s resolution. Economic
factors are those actors who effect the production of any industry. So, Catch is not the out of
question. And inflation is also not a good position for any country’s production point of view.
Inflation may increase cost of production but in case of FMCG products it does not effect that
much as it’s a essential good if one is thirsty he has to consume water and has no alternate.
 SOCIAL VARIABLES

Social variables Strongly Some what No Some what Strongly

Effected Effect Effected
Effected Effected
++ − 
+ −
Effects of advertisement of YES
Catch on Public popularity
How will do Catch’s YES
contribution affect charity
organizations
Has rising consciousness of YES
natural resources in people
effected your “save
environment activities.

CONCLUSION OF SOCIAL ANALYSIS

DS Group constantly nurtures its responsibility as a committed corporate citizen, by

regarding Corporate Social Responsibility as an integral part of its Business Objectives.
The Company has been working in Assam and Tripura, on a wide range of CSR
programmers ranging from education to health and making tribal and ethnic communities self
reliant. Under the CSR initiatives the group is renovating local schools, setting up a State
level College and developing heritage properties and construction of an eco lodge to be
owned and run by the tribal community.
While DS Group pursues leadership in its business spheres; it simultaneously endeavors to
promote common welfare through multidimensional activities to work towards an all round
development of the society
DS Group makes constant improvisations in all its manufacturing components, leading to the
making of a perfect product. Be it the sourcing of raw materials, the process of production,
or packaging of the final product, R&D remains the crux of DS Philosophy. Quality and
Innovation are the two core values that DS Group subsists on.
 In its constant effort towards building trust among its audience, the Group works strongly on
the principles of integrity, dedication, resourcefulness and commitment. A wide array of
skills and substantial depth of experience has not only led the Group to maintain its
leadership in its traditional businesses but has also resulted in gradually gaining market in its
relatively nascent forays.

TECHNOLOGICAL VARIABLES

Technological variables Strongly Some what No Some what Strongly

Effected Effect Effected
Effected Effected
++ + −−
+ −
Have business YES
innovations effectively
promoted your business
Has the government’s YES
regulations ever hindered
in importing technical
equipment
Does catch help in YES
promoting paperless
environment

Conclusion Of Technological Analysis

Of course business innovation leaves highly good impacts in the business of Catch. As catch
use more advance technology in its production process. It will resulted in increment of their
production through out the country.

As far as the “governmental hindrances” are concerned the impacts highly bad on catch’s
production. Ever year when budget in announced government taxes rates always shoot up.
This approach of government decreases the profit margin of Catch.

As the catch helping in promoting “paperless environment” .it impacts good, because
computers are the basic need of any person now a days. And though it’s a big industry so it is
promoting the trend of paperless environment. And it is giving the way of other industries to
come to new technologies and into a new world of business. Through computers catch can
increase the efficiency of its business and can have up –to-date data about their productions.
 Conclusion

Catch company has never wanted to target masses. Catch spring water is the only natural
spring water available in the market (other than himalya) and . The production takes place in
Manali, which raises the logistics cost. We are looking for more resources. We are not
bothered about the market share as we don’t perceive other mineral water players in the
market as our competitors. Most people do not understand the difference between spring
water and mineral water. The issue we are facing in the segment is that even the government
does not acknowledge spring water as a separate category. This is why we are not permitted
to write the words ‘spring water’ on the bottles. But we are happy with the response we have
got so far. The demand for Catch spring water comes from people who value the product and
these constitute mainly institutional sales from hotels and high commissions.

Catch company has never wanted to target masses. Catch spring water is the only natural
spring water avalable in the market (other than himalya) and . The production takes place in
Manali, which raises the logistics cost. We are looking for more resources. We are not
bothered about the market share as we don’t perceive other mineral water players in the
market as our competitors. Most people do not understand the difference between spring
water and mineral water. The issue we are facing in the segment is that even the government
does not acknowledge spring water as a separate category. This is why we are not permitted
to write the words ‘spring water’ on the bottles. But we are happy with the response we have
got so far. The demand for Catch spring water comes from people who value the product and
these constitute mainly institutional sales from hotels and high commissions. The company
has world-class packaging units and has adopted world class technology from Canpac
International AG, Switzerland, this increases the shelf life. Thus world-class technology is
the key to enter the food and beverages. In coming years the demand of packaged drinking
water will be increased very rapidly, so there is a huge scope for company to prosper in
coming years.
Appendices-

Economics and the law

The majority of the bottling plants - whether they produce bottled water or soft drinks - are
dependent on groundwater. They create huge water stress in the areas where they operate
because groundwater is also the main source - in most places the only source - of drinking
water in India. This has created huge conflict between the community and the bottling plants.
Private companies in India can siphon out, exhaust and export groundwater free because the
groundwater law in the country is archaic and not in tune with the realities of modern
capitalist societies.
The existing law says that "the person who owns the land owns the groundwater beneath".
This means that, theoretically, a person can buy one square metre of land and take all the
groundwater of the surrounding areas and the law of land cannot object to it. This law is the
core of the conflict between the community and the companies and the major reason for
making the business of bottled water in the country highly lucrative.
Take for instance the case of Coca-Cola's bottling plant in drought-prone Kala Dera near
Jaipur. Coca-Cola gets its water free except for a tiny cess (for discharging the wastewater) it
pays to the State Pollution Control Board - a little over Rs.5,000 a year during 2000-02 and
Rs.24,246 in 2003. It extracts half a million litres of water every day - at a cost of 14 paise
per 1,000 litres. So, a Rs.10 per litre Kinley water has a raw material cost of just 0.02-0.03
paise. (It takes about two to three litres of groundwater to make one litre of bottled water.)
However, water is not that cheap in the United States, home to Coca-Cola and PepsiCo. The
average cost of industrial water in the U.S. was Rs.21 per 1,000 litres in the late 1990s. It was
Rs.90/1,000 litres in the United Kingdom and Rs.76/1,000 litres in Canada.
Treatment and purification accounts for the next major cost. Even with the state-of-the-art
treatment system with reverse osmosis and membranes, the cost of treatment is a maximum
of 25 paise a litre (Rs.0.25/litre). Therefore, the cost of producing 1 litre of packaged drinking
water in India, without including the labour cost, is just Rs.0.25. In a nutshell, in
manufacturing bottled water, the major costs are not in the production of treated and purified
water but in the packaging and marketing of it.
The cost of a bottle, along with the cap and the carton, is the single biggest cost - between
Rs.2.50 and Rs.3.75 for a one-litre bottle. For water sold in big plastic jars (20-50 litres),
which are also reused, or in pouches, this cost is much lower. It is precisely owing to this that
companies sell water at even Re.1 a litre in a 20-50 litre jar and still make profits. Labour and
establishment and marketing costs are highly variable and depend on the location and size of
companies. Informal discussions with industry members reveal that the gross profit of this
industry can be as much as between 25 and 50 per cent.

Huge real costs

The reason that companies do not have to bear the cost of the main raw material - water - has
made this industry highly profitable. But the real cost of the industry is huge.
The cost of fast-depleting groundwater is incalculable and so is the cost of disposal of plastic
bottles and pouches. These are hidden costs that society and the environment pay and will
pay in the future. The sale of bottled water is therefore not environmentally sound by any
stretch of the imagination.
There are much cleaner ways to access clean and healthy water and for this we will have to
rethink our water paradigm.
Groundwater is the cleanest and cheapest source for all, but we have over-extracted and
polluted it with natural contaminants, agro-chemicals and industrial waste. We will have to
recharge and revive our groundwater bodies and for this the existing archaic law must
change.
Our surface water bodies are in a deplorable condition. We dump our sewage and industrial
waste in rivers and ponds, try to clean them in massive centralised treatment plants and then
supply the water to urban households - to be discharged again as wastewater into the same
water body. This vicious cycle must be cut and stopped. The cost of dirty water is just too
great for society to bear. Bottled water and domestic treatment systems are a cheap as well as
fill-and-forget solution for 30 per cent of the population, but in doing so we have not left any
solution for the 70 per cent of the poor and the marginalised.
Kala Dera Aater Contoversy
Kala Dera, in Rajasthan, was declared a drought area by the Indian Government in
September, following this year’s failed monsoons. But the situation has been worsened by
Coca-Cola’s operations in the region. Their controversial bottling plant draws on the same
groundwater sources as those used by the local community and farmers, with recent data
revealing that groundwater levels plummeted by 5.83 meters in just one year between May
2007 and May 2008 – a huge drop never before witnessed in Kala Dera. Coca-Cola’s use of
the groundwater reaches its peak in the summer months, exactly when water shortages in the
community are at their worst.
‘The Coca-Cola Company is denying our fundamental human right to water by continuing to
extract groundwater from a rapidly falling aquifer. Every drop of water that Coca-Cola
extracts is water taken away from the children, women and men who are unable to meet their
basic water needs, leave alone the farmers who are seeing their crops fail,’ explains Mahesh
Yogi of the Kala Dera Sangharsh Samiti, a local community group that has been opposing the
plant since 2002. ‘Coca-Cola has contributed significantly to the falling water tables and they
must shut down and leave Kala Dera.’
Last year a Coca-Cola-funded study confirmed the concerns being raised by the community,
showing that the company was a significant contributor to the water crisis. But Coke has
refused to follow the study’s recommendations: to relocate the plant or bring in water from
outside the area to meet its needs.
Cost Of Producing One Bottle Of Mineral water
 BIBLIOGRAPHY
• www.DSgroup.com
• www.ask.com
• www.google.com
 • The Financial Express
• www.YahooFinance.com

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