Project Final
Project Final
When it comes to influencing consumers to purchase a product, their perception of the brand
must be taken into account. This perception may vary based on the retail customer or a
certain demographic of retail customer. Retail customer perception can be developed from a
variety of factors, such as their own personal experience or how they have heard other people
experienced the product.
The Internet has transformed how people experience brands and build their perceptions. Social
media and review websites provide access to reviews and details that help retail customers form
their own perceptions about brands and their products.
With a rise in health awareness, increase in tourism and the easy availability of bottled water,
the per capita consumption of bottled water in India is on the increase.
The total market was valued at Rs.60 billion in 2013, of which the top five players accounted
for 67 per cent of the market share. This market is expected to grow at a CAGR of 22 percent,
to reach Rs.160 billion in 2018.
The bottled water industry in India witnessed a boom in the late 1990s soon after Bisleri
launched its packaged drinking water in the country. This significant growth was fuelled by a
surge in advertising by the industry players that "bottled water was pure and healthy".
Today, with a rise in health awareness, poor quality of tap water, and the ease of availability
of bottled water, the per capita consumption of bottled water in India is on the increase.
India's packaged bottled water industry is currently dominated by the top five players, including
Bisleri, PepsiCo, Coca Cola, Dhariwal and Parle. These companies struggle to penetrate the
1
small non-tier cities and towns due to poor infrastructure, thus providing an opportunity for
small regional players to build a presence in regional markets.
According to Shilpa Eguvanti, Team Lead (Consulting) at Value Notes, "Even as the industry
is on a growth path, smaller local players and the unorganized sector are eating into the market
of the established players, often by imitating their trademarks."
Maximum sale of bottled water comes from the retail sector; but this is changing with demand
coming from social functions and corporate events, especially for bulk water or bottled water
cups. With the aim to capture all the segments of society, players have started foraying into
packaged water pouches at low price points, but this is still in the experimental stage.
The Value Notes report, titled Packaged Bottled Water Industry in India: 2013-2018, details
the current market size and growth, the drivers and challenges for growth, the competitive
landscape, an analysis on the industry for investor attractiveness, and Porter's 5 Forces. Key
market trends discussed indicate the opportunities and challenges for industry players.
2
1.1 Outline of the Project:
The bottled water industry in India witnessed a boom in the late 1990s soon after Bisleri
launched its packaged drinking water in the country. This significant growth was fueled by a
surge in advertising by the industry players that "bottled water was pure and healthy".
This study has been undertaken to assess the retail customer perception towards the private
label brands of purified drinking water in Chennai in spite of all the above speculations and
findings from the raids taken place at water plants in Chennai. The major purpose of this project
is to analyze the consumer perception towards private label brands of purified drinking water
in Chennai and identify a long term marketing strategy in this growing area.
The basic need for the study is to analyze the reasons behind the retail customer preferences
for private label brands of purified drinking water in Chennai. The data to be collected will be
helpful to identify the retail customer’s expectations, product awareness, health consciousness,
brand dependence, price affordability, likes and dislikes. Also, these data will be useful to
create a long term marketing strategy for a new brand of packaged drinking water.
Stratified sample has been used for this research. Responses have been collected from 150
respondents using the questionnaire. Target respondents are the retail customer who consumer
purified drinking water of private label brands in Chennai. The data collected has been analyzed
through various statistical tools like Karl Pearson’s Correlation, Chi- square test and One-way
Anova test. Numerous new findings has been derived from this research has helped to provide
few suggestions have been given to the private branded companies involved in purified
drinking water business to improve the overall perception of the retail customers.
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1.1.1 Need and Importance of the Study:
The basic need for the study is to analyze the reasons behind the retail customer
preferences for private label brands of purified drinking water in Chennai. The data
to be collected will be helpful to identify the retail customer’s expectations, product
awareness, health consciousness, brand dependence, price affordability, likes and
dislikes. Also, these data will be useful to create a long-term marketing strategy for a
new brand of packaged drinking water.
.
This study is used to improve the retail customer perception in respect of satisfying
their needs of the retail customer who purchase purified drinking water from private
firms
To create a long-term marketing strategy for a new brand of packaged drinking water
Many upcoming companies can use these results to position their brand in the consumer
market
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1.1.3 PROBLEM DEFINITION:
A joint surprise check conducted by the Central Bureau of Investigation (CBI) and the Bureau
of Indian Standards (BIS) has revealed shocking violations of basic safety parameters in
packaged drinking water units in and around Chennai. A majority of the 300-odd packaged
drinking water plants from where samples were taken up for analysis did not have a laboratory
or microbiologist, mandatory for assessing and certifying the quality of the water. In one of the
plants located in West Mambalam here, CBI sleuths found water from a dirty overhead tank
being manually filtered and packed in sachets and bottles and sold as mineral water.
This study has been undertaken to assess the retail customer perception towards the private
label brands of purified drinking water in Chennai in spite of all the above speculations and
findings from the raids taken place at water plants in Chennai.
PRIMARY OBJECTIVE
To study the retail customer’s perception towards package drinking water with reference to
John Brothers Aqua Cool
SECONDARY OBJECTIVES
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1.1.5 RESEARCH METHODOLOGY:
The type of methodology going to be used in this project is Descriptive research. It is a study
designed to depict the participants in an accurate way. It is used to describe characteristics of a
population or phenomenon being studied. Descriptive research does not answer questions about
how/when/why the characteristics occurred. Descriptive research can be either quantitative or
qualitative.
RESEARCH DESIGN:
A small segment of the market has been covered, so the conclusion cannot be
generalized.
The data collected may have minimal errors, due to incorrect information from some of
the respondents
Accuracy of the study is based upon the respondent’s response.
Lack of time because of which some of the information could not be collected.
Unwillingness & Bias from the part of respondents limits the coverage of the Study.
SAMPLING DESIGN:
SAMPLE SIZE:
Responses have been collected from 150 respondents using the questionnaire. Target
respondents are the retail customer who consumer purified drinking water of private label
brands in Chennai.
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SAMPLING METHOD:
Probability sampling
Probability samples are selected in such a way as to be representative of the population. They
provide the most valid or credible results because they reflect the characteristics of the
population from which they are selected (e.g., residents of a particular community, students at
an elementary school, etc.). There are two types of probability samples: random and stratified.
Primary data:
It is the data observed or collected directly from first-hand experience. An advantage of primary
data is that it is specifically tailored to your research needs.
Health consciousness
Brand Value and Trust on the brand
Quality of the water
Taste of the water
Brand availability
Portability for travelers
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Secondary data:
Secondary data is information that has been collected for a purpose other than your
current research project but has some relevance and utility for your research.
Correlation analysis is the statistical tool used to measure the degree to which two
variables are linearly related to each other. Correlation measures the degree of association
between two variables. The Pearson product-moment correlation coefficient is a measure of
the strength and direction of association that exists between two variables measured on at least
an interval scale. It is denoted by the symbol r.
𝐍∑𝐗𝐘−∑𝐗∑𝐘
𝒓=
√𝐍∑𝐗 𝟐 −(∑𝐗)²√𝐍∑𝐘 𝟐 −(∑𝐘)²
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CHI- SQUARE TEST I – (Ψ2)
A chi-squared test, also referred to as chi-square test or χ2 test, is any statistical hypothesis
test in which the sampling distribution of the test statistic is a chi-squared distribution when
the null hypothesis is true, or any in which this is asymptotically true, meaning that the
sampling distribution (if the null hypothesis is true) can be made to approximate a
chi- squared distribution as closely as desired by making the sample size large enough.
The χ2 test was first used by Karl Pearson in the year 1980. The quantity χ2 describes the
magnitude of the discrepancy between theory and observation.
It is calculated using:
PERCENTAGES
Percentages refer to a special kind of ratio. Percentages are used in making comparison
between two or more series of data. Percentages are used to describe relationships; it is
expressed as.
Percentage = (no of employees/total no of employees) 100
CHARTS:
Charts are graphic displays of data for easy understanding of relative positions that is
not always possible with descriptive words or numbers. Types of charts commonly used in
business data presentation are: Bar and pie.
BAR CHARTS:
The bar chart is commonly used for presentation of qualitative data. The data can be
continuous or discrete data, which are plotted against discrete data intervals. The vertical bar
diagram, also called bar chart where the length or height of bars represent the numerical value
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of the event or measurement. Width or gap between the bars is of no significance to the bar
chart data, but they are uniform in a diagram.
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 Inia is less than half a liter per year, compared to 111 liters in
France and 45 liters 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, A
Pelligrino, Perrier.
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In the market for water purifiers, while Aqua guard from Eureka Forbes, remains the market
leader, several others have made it to the market place. Usha Shriram with its Brita water
Purifier already established, has launched India’s first digital water purifier-the water guard
Digital in collaboration with Brita GmbH of Germany. HLL has also forayed into the water
business, with its water purifier device called Pure.
water Purifiers (residential segment) are growing at 22-25% annually. A high growth rate
indicates a good future potential in these sectors. It is a Rs 5 to 6 billion industry, with Aqua
guard cornering more than 50% of the market. The rest is divided among Kent RO, Pentair,
Ion Exchange and Others.
One cannot think about life without water. We are blessed with adequate natural resources
of water, but increasing population, the alarming rate of global warming and rapid
industrialization coupled with lack of adequate and improved management of the water supply
systems resulted in the increased rate of water consumption, wastage of water and deteriorating
condition of the water supply networks, resulted in the scarcity of water. The Water shortage
around the world and particularly in the developing countries has opened new doors for bottled
water Industry in the current decade.
Currently, bottled water is sold in a variety of packages right from 200 ml pouches and
glasses, 330 ml bottles, 500 ml bottles, one-liter bottles and even 20- to 50-liter bulk water
packs. In terms of cost, the bottled water business in India can be divided broadly into three
segments, premium natural mineral water, natural mineral water and packaged drinking water.
It is obvious to find the bottled water manufacturer in metro cities, might be running
manufacturing in one room or shop, but it’s surprising to know that at present in many medium
and small villages and even in some of the prosperous rural areas, you will find manufacturers
of bottled water and local brands of bottled water laying with the well-known brands on the
same shelf.
Parle was the pioneer Indian company to enter the bottled water market in the country by
introducing Bisleri in India 25 years ago and created “Bisleri” as the synonym of mineral water.
However, that image is getting deteriorated with the entry of major international giants like
Coca cola, Pepsi, Nestle and a noticeable presence of national players like Mount Everest,
Manikchand, Kingfisher. Their distribution network with a professional marketing approach
resulted in capturing the major chunk of the bottled water market, though they are receiving
good fight from the regional players as well. One thing has to be noted in this business is that
the required infrastructure and the distribution network requirements remain same for all the
types of players, whether they are operating at national or regional levels. According to me, the
where they can create the difference is the only marketing and branding part.
Almost all the major international and national brand water bottles penetrated in the Indian
market and are available at right from the malls to railway stations to the bus stations to
multiplexes to grocery stores and even at panwala's shop. It has penetrated so deeply into the
market and now it’s become very common to consume bottled water whereas just before few
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years, it was considered as the rich people's choice and fashion to consume bottled water.
Thanks to low pricing and aggressive marketing strategies adopted by the multinationals. Some
surveys show that truck drivers on highways form a major chunk of bottled water drinkers.
Penetration in rural areas is another significant factor that is likely to play a key role in the
development of the bottled water trade.
The Indian market is estimated at about Rs 1,000 Crore and is growing at a whopping rate of
40 per cent. By 2010, it will reach Rs 4,000 - 5,000 Crore with 33 per cent market for natural
mineral water. According to a national-level study, there are more than 200 bottled water
brands in India and among them nearly 80 percent are local brands. In fact, making bottled
water is today a cottage industry in the country. However, though having the large number of
small and local producers, this industry is dominated by the big players like - ParleBisleri,
Coca-Cola, PepsiCo, Parle Agro, Nestle, Mount Everest, Kingfisher and Manikchand and so
on. These players can be called as the trend setters in the marketing of packaged drinking water.
If we compare the growth and status of Indian Bottled Industry with that of Western or Asian
market, we are far behind in terms of quantum, infrastructure, professionalism & standard’s
implementation. The per capita consumption of mineral water in India is a mere 0.5-liter
compared to 111 liters in Europe and 45-liter in the USA. Also, as per UN study conducted in
122 countries, in connection with water quality, India’s number was dismal 120. In comparison
to global standards India's bottled water segment is largely unregulated. Safe water is rated
with a different yardstick in different countries. In India, the aspect has been overlooked since
long. Indian consumers tend to believe that any bottled water is safe water while this may not
be true.
However, there is no need to be disappointed looking at the global bottled water industry
because our industry data shows that the Indian bottled water industry is one of the most
booming sectors in India and set to become a billion-dollar industry by the end of the current
decade if the growth trajectory remains the same. The factors contributing to such a rapid
growth are increased disposable income of the people, poor public water distribution system
and infrastructure and the Indian government hardly cares for what happens to the nation's
water resources. However, like each industry is facing the challenges the Indian bottled water
industry is also having bottlenecks like poor transportation infrastructure, low entry barriers,
difficulties in brand recognition and sometimes threats from the environment protectors and
social activist against the use of bottled water.
Though ignoring all these hurdles, and only looking at the mentioned growth rate, many bottled
water companies think about their future business plans. For e.g. PepsiCo announced that it
will double the investments in its Indian beverage business in 2009. The company's Indian
beverage investments will be now total $220 million. Mount Everest Mineral Water, a
subsidiary company of Tata will also very soon launch a bottled water brand for the mass
market. Mount Everest presently sells only premium drinking water under the Himalayan
brand.
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The western part of India, which accounts for around 40 percent of the market and Gujarat state
more than 300 local and private companies are there packaging water pouches and bottles in
the state.
If we look at the future of water in India, is very gloomy unless the water management practices
are changed and if not taken any drastic steps towards this direction, then we will face a severe
water crisis within the next two decades and by that time will not leave with enough money
supply to build new infrastructure and also will not be able to satisfy the increasing demand of
water due to the population explosion in India.
Also, World Bank draft report, ‘India's Water Economy: Bracing for a Turbulent Future,' says
by 2020, India's demand for water will exceed all sources of supply unless the country's
management practices are changed. India can still store only relatively small quantities of its
fickle rainfall. Whereas arid rich countries (such as the United States and Australia) have built
over 5,000 cubic meters of water storage per capita, and China can store about 1,000 cubic
meters per capita, India's dams can store only 200 cubic meters per person. Moreover, India
can store only about 30 days of rainfall, compared to 900 days in major river basins in arid
areas of developed countries.
In my view, thanks to all these factors the Indian bottled water industry will be booming in
coming years and do not be surprised if today’s bottles water industry becomes next Oil
industry by 2025. The present Indian entrepreneurs and those who are planning to take the
plunge in the bottled water business are thinking that the industry has reached to its peak point,
and having stiff competition, but need to change their perception. As with the ever-increasing
demand of water, the elephant is already grown and looking at the future of water in India, is
continuously growing and gradually it will turn into mammoth.
With a rise in health awareness, increase in tourism and the easy availability of bottled water,
the per capita consumption of bottled water in India is on the increase.
The total market was valued at Rs.60 billion in 2013, of which the top five players accounted
for 67 per cent of the market share. This market is expected to grow at a CAGR of 22 percent,
to reach Rs.160 billion in 2018.
The bottled water industry in India witnessed a boom in the late 1990s soon after Bisleri
launched its packaged drinking water in the country. This significant growth was fuelled by a
surge in advertising by the industry players that "bottled water was pure and healthy".
Today, with a rise in health awareness, poor quality of tap water, and the ease of availability
of bottled water, the per capita consumption of bottled water in India is on the increase.
13
India's packaged bottled water industry is currently dominated by the top five players, including
Bisleri, PepsiCo, Coca Cola, Dhariwal and Parle. These companies struggle to penetrate the
small non-tier cities and towns due to poor infrastructure, thus providing an opportunity for
small regional players to build a presence in regional markets.
According to ShilpaEguvanti, Team Lead (Consulting) at Value Notes, "Even as the industry
is on a growth path, smaller local players and the unorganised sector are eating into the market
of the established players, often by imitating their trademarks."
Maximum sale of bottled water comes from the retail sector; but this is changing with demand
coming from social functions and corporate events, especially for bulk water or bottled water
cups. With the aim to capture all the segments of society, players have started foraying into
packaged water pouches at low price points, but this is still in the experimental stage.
The Value Notes report, titled Packaged Bottled Water Industry in India: 2013-2018, details
the current market size and growth, the drivers and challenges for growth, the competitive
landscape, an analysis on the industry for investor attractiveness, and Porter's 5 Forces. Key
market trends discussed indicate the opportunities and challenges for industry players.
The common challenges faced by the water bottle company were its supply on demands.
Now a day’s people in middle class family were thinking that supplying water bottle for their
family function and others so that the need of water bottle is in high peak, but the company
faces a large scarcity in their stock of production so that they can’t able to supply the water
bottle at correct time. Some of the people buy water bottle because of the price the company
can low its price but some of the company can’t do it because they were purchasing the raw
materials such as PET bottle caps and sleeve and sticker from other company. So, they can’t
reduce the price beyond some level as many companies were already in the market new
company were facing a large trouble get its name in the market. These were the challenges
faces by the Water Bottle Company.
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1.3 COMPANY PROFILE:
John Brothers Aqua cool packaged drinking Water & Bottles Company is a one-person
company incepted in the year 2017 as a production of water products. This company offering
various type of water plant depends on its use. Water was purified and packed in a hygiene
manner. The ground water is the main source or raw material for this company ground water
were collected from
The water was bringing from the places through Water Lorries and stored in 4000ltr tank in
the company. As this company was new its popularity was not so good.
The company was owned by one-person Mr. John Bosco with his knowledge in business he
was making the company to grow in a successful way one-day company was reach a peak as a
name for water products.
As the ground water was tasty in the locality of the plant or Kanyakumari district, as it was
developing district people now a day using the water bottle for their family functions or in any
places, so the CEO of the company plan to launch a water plant as the beginning of the concern.
As the company was now growing it has only 22 workers the workers were divided in to
groups based on the work. Company sale more than 350ltr water per day and making the
turnover of rupees 1lakh per month. In the company there are two Tata Ace for local
distribution and one Tempo for long distribution. There are 4 machines first one for auto filling
process (200ml,500ml,1ltr), second one is for 20ltr filling, and third one is for washing 20ltr
can and Fourth one is for packing and one conveyer belt for moving the packages for the
loading area. And a area for vehicle maintenance and four helpers, two helpers for vehicle
maintenance and two for machinery maintenance.
This company was big competitor for other water plant companies with in the district of
Kanyakumari.
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LOCATION OF THE PLANT:
JB Brothers Food Product Company was situated in the village called Alanchi. Which is 27km
away from the town of Nagercoil, which is the headquarters of Kanyakumari district. The
village is liked by the National Highway No.79.
42kms away from (west) cape comrin, the southernmost tip of India.
The nearest Airport-Trivandrum (63kms)
The nearest railway station-Palliyadi (10kms)
JB Brothers food products is situated in an eco-friendly atmosphere.
GOAL
“Producing and supplying Hygiene and tasty water for the consumers with in our state “is
the goal of the organization.
OBJECTIVES
Manufacturing of soda.
CERTIFICATION
ISO 9001:2016 certification (QMS) has been given to John Brothers Aqua Cool
Packaged Drinking Water & Bottles. This certification is awarded because of its quality
products and the co-operation and hard work of each and every member in this concern.
ISO 22000:2005 certification (FSMS) has been given to John Brothers Aqua Cool
Packaged Drinking Water & Bottles. This certificate is awarded because of its food and safety
in the organization.
BIS has been given to John Brothers Aqua Cool Packaged Drinking Water & Bottles.,
which is mandatory for the packaging Drinking Water in India.
Pollution Control Board certificate has been given to John Brothers Aqua Cool Packaged
Drinking Water & Bottles., after checking the circumstances and how the waste water was
disposed.
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ASSURANCE
Tested quality
Service unto customer delight.
Adobe of freshness and purity.
Eco-friendly atmosphere.
WATER PROCESS
Ground water was collected and tested under Bacteriological water analysis was
done for checking the water weather the water is affected by bacteria or not.
PH level of the water is checked after RO process and after bottle filling.
Intensive procedures to pressure the quality are undertaken to ensure the purity.
At first the company was started by the company was started by single person who
doesn’t even have any experience in business, but he tried and capture the local
market in the state of Kerala. Then he hires a person for marketing and now capturing
the local market at KanyaKumari district.
The marketing of the product has been commercialized in the stage by organizing
inter -state business in Kerala. The business process is carried out based on providing
quality and tasty water.
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VISION:
The vision of the company is to quality and tasty water to all people. Providing jobs for the
youngsters who were educated and to deliver the water bottle in correct time for the loyal
customers and the customers who ordered the products for their family functions or any other
events.
MISSION:
The mission of the company is to hire more staff for marketing and sales who were loyal to
the company.
QUALITY POLICY:
“Intend to achieve customer delight in selling water and water products and other food
products by having continual improvement in procurement of Filtered water, production of
water products and other food products”.
“Intend to ensure food safety in procuring, processing and selling water, water based
products and other food products free of hazards by implanting international food safety
management system and communicating all levels of the organization, thus continually
improving its effectiveness”.
Lebanto
Bisleri
Aquafina
Aquatra
Bliss
Volga
State of the art infrastructure:
Water collection
Water processing
Water Distribution
There is one processing unit (R.O Process) which is located near the water storage tank. All
the operations of the units are fully monitor in manual way to make sure that the product is
manufactured fast.
The packing unit and transportation facility work hand in hand to make sure that they
deliver the products, with in the stipulated time frame. The entire infrastructure is managed by
a team who were talented and well qualified professionals who are constantly supervised by
their motors.
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Working Hours:
John Brothers Aqua Cool Packaged Drinking Water & Bottles. has 22 workers 15 men and
7 women. The work timing was different for genders. Other than that, each employee has 10
hours of working the working time was given below in the form of table
Details Timing
Details Timing
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The water bottle production unit was working for 18hours it functions based on shifts. It has
three shifts. Shift timing was given below.
SHIFT Timings
1 6:00am – 12:00pm
2 12:00pm – 6:00pm
3 6:00pm – 12:00pm
Working hours of this production unit is divided in to time because the sound came from the
machine have more decibels than that of human hearing even though the company provides ear
plug they make the workers work for only 6hours because of the health consciousness on
workers from the company.
ORGANIZATIONAL CHART
Enterprenaur
Managing
Director
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1.4 PRODUCT PROFILE:
As we know water is the major source of living which contains minerals and iron content,
there are two types of water Raw water and Purified milk
This company manufactures two types of family and they termed it as “Family” the first one
is Aqua Cool family and JB Royal family. Both families doesn’t have much change, bottle
appearance only differ Aqua cool bottle is used in local markets and home function. JB Royal
Family bottle was used in Five-star hotels and three-star hotels.
DIAMOND BOTTLE
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Aqua Cool (250 ml)
It has normal appearance it is the younger one of the Aqua Cool family.
It contains 250 ml of water in it.
It is used by the middle-class people on their family function.
Its price is Rs 10 per pieces.
While it is packed for Exporting or for the market each packet or box contain 24pcs
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Aqua Cool (500ml)
It also has normal appearance it is the elder one of the Aqua Cool Family.
It contains 500ml of water.
It also has the same use as like as the Aqua Cool (250ml)
Its price is Rs 15 per pieces.
While it is packed for Exporting and Marketing each packet or box contain 12pcs.
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Aqua cool (1liter)
24
Aqua cool (2 liter)
It also looks alike the other members of the Aqua Cool Family, but it is the father and
big one of the family.
It contains 2 liters of water.
Its price is Rs20 per pieces.
While it is packed for exporting or market each packet or box contain 12 pieces.
25
JB Royal (250 ml)
26
JB Royal (1liter)
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CHAPTER 2: REVIEW OF LITERATURE
Water is a good solvent and picks up impurities easily. Dissolved solids refer to any minerals,
salts, metals, cat ions or anions dissolved in water. Total dissolved solids (TDS) comprise
inorganic salts (principally calcium, magnesium, potassium, sodium, bicarbonates, chlorides,
and sulfates) and some small amounts of organic matter that are dissolved in water. (Holmes-
Farley R. What is TDS? Reef keeping. 2004, 4. www.reefkeeping.com/issues/2004-
04/rhf/feature/ (accessed Oct 1, 2010).
Arsenic is a highly poisonous metallic element and considered a contaminant in the drinking
water. Arsenic is found naturally in rocks and soil, plants, air and water. Studies show that
exposure to arsenic in the drinking water have found there is a higher risk of cancers of the
bladder, kidney, lung, skin, colon and liver. Studies have found that pregnant woman who
drink water with traces of arsenic may give birth to babies with lung damage, respiratory
infections and babies are at a higher risk for developing lung disease. (W.R. Chappell, C.O.
Abernathy, R.L. Calderon, and D.J. Thomas – Arsenic exposure and health effects V,
Volume 5).
Reverse osmosis (RO) is a water purification process in which water is forced through a semi-
permeable membrane that removes 90-99% of tap water impurities. The result is water that
is free of minerals and other contaminants. Membrane type determines the amount of dissolved
solids a unit is capable of removing. The membrane purification used in reverse osmosis
removes most impurities of the water, including arsenic.
Private label brand purified drinking water companies like Aquafina, Bisleri etc., use the RO
technology to purify the ground water into drinking water and package them under their brand
name. Per capita consumption of bottled water in India is less than half a liter per year compared
28
to 45 liters in US. The bottled water market is growing at a rate of 40% a year. Coke, Pepsi and
nestle are trying to grab a significant share in the market.
George N. Lodorfos, Kate L. Mulvana, John Temperley (2006), examined that the
determinants of consumers’ attitudes and intentions to exhibit brand loyal behavior,
Specifically, this study employed the theory of planned behavior to investigate the antecedent
factors contributing to an individual’s brand choice decision within the insurance market. Price
sensitivity had a significant effect on attitude to repurchase, which in turn affected intention to
repeat purchase, whilst past experience with the brand is critical in determining trustworthiness
beliefs, price sensitivity and purchase behavior.
29
customer revenue does not seem to represent the best management approach to maximize
overall firm profitability. In fact, it could actually result in a negative return on investment.
Therefore, retail customers should first be segmented by their profitability to the firm before
expanding resources to improve retail customer satisfaction.
SUI-HUA YU, National chung cheng university, Taiwan (2008) in his study on “retail
customer satisfaction and the economic return to the firm” has explained the relationship
between retail customer satisfaction and economic returns which received growing attention in
the retail customer satisfaction literature. However, there has been a limited work linking retail
customer satisfaction to retail customer profitability. Specifically, most empirical studies
conduct firm wide tests, but few investigate if individual retail customer satisfaction with
products and services drives their purchase intention and economic contribution to the firm.
The article examines how individual retail customer’s satisfaction with the services impacts
their purchases and profits contribution to the firm. Retail customer satisfaction is found to be
positively associated with retail customer’s repurchase intention and the firm’s reputation. The
impact of overall retail customer satisfaction is largely attributed to the impact of the
responsiveness dimension. While there is no significant and positive relation between retail
customer satisfaction and profitability, retail customer satisfaction does have a positive impact
on retail customer revenue and costs. This finding reveals that higher retail customer
satisfaction leads to higher retail customer revenue and higher retail customer costs at the same
time and thus retail customer remains unaffected.
30
important of the five dimensions for lodging consumers followed, in ranking, by assurance,
responsiveness, tangibles, and empathy (Knutson, Stevens, Wullaert, Patton and Yokoyama,
1990). Subsequently, Knutson, Yokoyama, Patton, and Thompson (1990) analyzed the
statistical methodology itself, comparing the uses of confirmatory analysis versus factor
analysis in index testing and refinement.
Then, in 1992, Knuston, Stevens, Patton, and Thompson studied consumer expectations for
service quality in economy, mid-price, and luxury hotels. Across the three segments, they
found that the five dimensions maintained their same ranking positions and that the higher the
price category, the higher the consumer expectations of service quality. As a next step, Patton,
Stevens and Knutson (1994) translated the instrument into other languages and pilot-tested
LODGSERV in five other cultures. The instrument worked equally well, retaining its high
validity level across each of the five pilot tests.
In 1995, Stevens, Knutson, and Patton drafted DINSERV after adapting the instrument
SERVQUAL to the restaurant industry and using the lessons learned in developing and refining
LODGSERV. The instrument was used to measure consumer expectations for service quality
in three restaurant segments: quick service, casual/theme, and fine dining (Stevens, Knutson,
and Patton, 1995). Like LODGSERV, DINESERV was found to have a high degree of
reliability. The alpha for the total index is .95, while the reliability coefficients (alpha levels)
for the five dimensions range from .89 to .92 (Stevens, Knutson, and Patton, 1995). Results
show that DINESERV is a valid and reliable index by which consumer expectations for service
quality in a restaurant experience can be measured.
In 1999, Wu, Goh, Lin and Chen conducted a study in measuring service quality in a mid-
price multi-unit Chinese restaurant using the DINESERVE instrument. The authors evaluated
the retail customer perceptions of service quality and identified the differences in retail
customer perceived service quality between lunch and dinner and between new retail customers
and regular retail customers (Wu, Goh, Lin, and Chen, 1999). Kim, McCahon, and Miller
(1999) also conducted a study to validate five dimensions of the DINESERV instrument in
Korean casual dining restaurants and explored the differences in perceived service quality by
restaurant. It is also hypothesized that perceived service quality differs based upon
characteristics of the patrons. The present study attempts to evaluate retail customers’
31
perceptions of service quality in a chain-operated steakhouse using modified DINESERV
instrument. Results can be compared to the results of previous studies.
32
CHAPTER 3: DATA ANALYSIS AND INTERPRETATION
2 Bore water 4 3
3 Bubble top 82 55
Domestic RO
4 machine 61 40
50
40
40
30
20
10
2 3
0
Corporation/ Metro Bore water Bubble top Domestic RO machine
water
INFERENCE
The Above table shows that 55 % respondent’s source of drinking water at home is Bubble top
and 40% respondent’s source of drinking water at home is domestic RO machine.
Most of the respondent’s source of drinking water at home is Bubble top
33
TABLE 3.2 REASON FOR CHOSING THE PURIFIED DRINKING WATER
2 Reliable 28 19
Health
75
3 consciousness 50
4 Cost effective 15 10
60
50
50
40
30
21
19
20
10
10
0
Taste of water Reliable Health consciousness Cost effective
INFERENCE
The Above table shows that 50% respondent’s reason for choosing the purified drinking water
is health consciousness and 21% respondent’s reason for choosing the purified drinking water
is Taste of water.
Most of the respondent’s reason for choosing the purified drinking water is health
consciousness.
34
TABLE 3.3 BRAND AFFILIATIONS OF BUBBLE TOPS
Brand No of Percentage
S.No Preference respondents %
Popular
135
1 Brand 90
Any
15
2 Brand 10
100
90
90
80
70
60
50
40
30
20
10
10
0
Popular Brand Any Brand
INFERENCE
The Above table shows that, 90% of respondents who are using bubble tops for purified
drinking water only and they are brand specific. 10% of respondents have no brand.
35
TABLE 3.4 BRAND NAMES
Brand
Preference Respondents Percentage
Bisleri 91 61
Aquafina 54 36
Team 03 2
Others 02 1
70
61
60
50
40 36
30
20
10
2 1
0
Bisleri Aquafina Team Others
INFERENCE
The Above table shows that, 61% of respondents are using Bisleri brand bubble top and 36%
of respondents are using Aquafina brand bubble top.
36
TABLE 3.5 REASONS FOR BRAND PREFERENCE
Brand
S.No Preference Respondents Percentage
1 Brand Name 74 49
2 Availability 43 29
3 Taste 27 18
Affordable 06
4 price 4
60
49
50
40
29
30
20 18
10
4
0
Brand Name Availability Taste Affordable price
INFERENCE
The Above table shows that, 49% of respondents prefer popular brand bubble top for brand
name and 49% of respondents prefer popular brand bubble top for the availability.
Most of the respondents prefer popular brand bubble top for brand name.
37
TABLE 3.6 PRICE OF 20ltr BUBBLE TOP CAN
1 RS 80 16 11
2 RS 75 20 13
3 RS 30 65 43
4 Others 49 33
50
45 43
40
35 33
30
25
20
15 13
11
10
0
RS 80 RS 75 RS 30 Others
INFERENCE
The Above table shows that, 43% of respondents are paying 30 rupees for their 20-liter bubble
top can and 33% respondents are paying other cost for their 20-liter bubble top can.
Most of the respondents are paying 30 rupees for their 20-liter bubble top
38
TABLE 3.7 TYPE OF RO MACHINE
Brand No of Percentage
S.No Preference respondents %
Local
assembled 30
1 brand 20
Popular
120
2 brand 80
70
60
50
40
30
20
20
10
0
Local assembled brand Popular brand
INFERENCE
The Above table shows that, 80% of respondents are using popular brand RO machine and
20% respondents using local assembled brand RO machine.
39
TABLE 3.8 BRAND NAME OF RO MACHINE
Brand Market
No of
S.No Preference Percentage
respondents
1 Aquaguard 95 63
2 Kent 42 28
3 Pureit 10 7
4 Others 3 2
70
63
60
50
40
30 28
20
10 7
2
0
Aquaguard Kent Pureit Others
INFERENCE
The Above table shows that, 63% of respondents are using Aquaguard brand RO machine and
28% of respondents using Kent brand RO machine.
40
TABLE 3.9 REASONS FOR BRAND PREFERENCE
1 Brand Name 65 43
2 Affordable price 46 31
3 Guarantee/Warrantee 24 16
5 Other reasons 9 6
50
45 43
40
35
31
30
25
20
16
15
10
6
4
5
INFERENCE
The Above table shows that, 43% of respondents prefer popular brand RO machine for brand
name and 31% of respondents prefer popular brand RO machine for the affordable price.
Most of the respondents prefer popular brand RO machine for brand name.
41
TABLE 3.10 PRICE OF RO MACHINE
1 Rs.9,000/- 76 51
2 Rs.13,000/- 37 25
3 Rs.16,500/- 9 6
4 Rs.18,500/- 6 4
5 Others 22 14
60
51
50
40
30
25
20
14
10 6
4
0
Rs.9,000/- Rs.13,000/- Rs.16,500/- Rs.18,500/- Others
INFERENCE
The Above table shows that, 51% of respondents are using 9000rs RO machine and 25% of
respondents are using 13000rs RO machine.
Source of No of Percentage
S.No water respondents %
Carry water
1 bottle 28 19
Water
2 Packets 7 5
Mineral
water
3 bottles 115 77
4 Others 0 0
Total 150 100
80 77
70
60
50
40
30
19
20 14
10 5
0
0
Carry water bottle Water Packets Mineral water Others Others
bottles
INFERENCE
The Above table shows that, 77% of respondents are using bottled drinking water during travel
and 19% of respondents are Carry water bottle during travel.
Most of the respondents are using bottled drinking water during travel.
43
TABLE 3.12 REASONS FOR CHOOSING THE MINERAL WATER BOTTLES
2 Taste of water
09 6
3 Easy availability
02 1
4 Chilled water
0 0
5 Others
Total 150 100
60
50
50
43
40
30
20
10
6
1 0
0
Clean & Hygienic Taste of water Easy availability Chilled water Others
INFERENCE:
44
The Above table shows that, 50% of respondents are given clean and hygiene as the reason for
buying bottled waters and 43% of respondents are choosing the mineral water bottles for its
taste.
Most of the respondents are using bottled drinking water during travel
Brand No of
S.No Preference respondents Percentage %
103 69
1 Popular brand
2 Any brand 10 7
3 Amma water 37 24
80
69
70
60
50
40
30
24
20
10 7
0
Popular brand Any brand Amma water
INFERENCE
45
The Above table shows that, 69% of the respondents prefer popular brand mineral water and
37% of the respondents prefer amma water.
2 Aquafina 53 35
3 Bisleri 79 53
4 Kinley 4 2
6 Others 3 2
46
60
53
50
40
35
30
20
10 7
2 1 2
0
Team Aquafina Bisleri Kinley Tata water plus Others
INFERENCE
The Above table shows that, 53% of the respondents are drinking Bisleri brand water bottles
as and 37% of the respondents are drinking Aquafina brand water bottles.
Brand
S.No Preference Count Percentage
Brand
48 32
1 Name
2 Quality 70 47
Cost
11 8
3 effective
4 Availability 20 13
47
CHART 3.15 REASONS FOR BRAND PREFERENCE
50 47
40
32
30
20
13
10 8
1 2
0
Brand Name Quality Cost effective Availability Tata water plus Others
INFERENCE
The Above table shows that, 47% of the respondents are using a popular brand for its quality
rather for brand value and 32% of the respondents are using a popular brand for its brand name.
Most of the respondents are using a popular brand for its quality rather for brand value.
Cost in
S.No Rupees Count Percentage
1 20 83 55
2 30 58 39
3 10 9 6
4 others 0 0
48
60 55
50
39
40
30
20
10 6
0
0
20 30 10 others
INFERENCE
The Above table shows that, 47% of the respondents are saying that the price of a mineral water
bottle is Rs.20 and 30% of the respondents are saying that the price of a mineral water bottle is
Rs.30.
Most of the respondents are saying that the price of a mineral water bottle is Rs.20.
TABLE 3.17 PREFERRED PRICE OF MINERAL WATER BOTTLE
No of
Price in
respondents
S.No Rupees Percentage
1 15 74 49
2 20 27 18
3 10 43 29
4 others 6 4
49
60
49
50
40
29
30
20 18
10
4
0
15 20 10 others
INFERENCE
The Above table shows that, 49% of the respondent’s preferred price of mineral water bottle is
15 RS 29% of the respondent’s preferred price of mineral water bottle is 10 RS.
Most of the respondents are prefer 15 RS as a price for mineral water bottle.
Brand No of Percentage
S.No Preference respondents %
135 90
1 Yes
2 No 15 10
50
10
90
INFERENCE
The Above table shows that, 90% of respondents are satisfied with their favorite brand of water
and 10% of respondents are not satisfied with their favorite brand of water.
Most of the respondents are satisfied with their favorite brand of water.
STATISTICAL TOOLS
Chi-square is the sum of the squared difference observed (o) and the expected (e) data (or the
deviation, d), divided by the expected data in all possible categories.
51
Alternate hypothesis (H1):
Cases
52
source of drinking water at home * Preferred source selected for drinking water Crosstabulation
Health
Taste of Relia consciou Cost
water ble sness effective Total
Bubbletop Count 22 28 32 0 82
53
% of Total 15.4% 19.6 22.4% .0% 57.3
% %
Domestic RO Count 0 0 43 11 54
Machine
% within source .0% .0% 79.6% 20.4% 100.0
of drinking %
water at home
54
Chi-Square Tests
Asymp. Sig.
Value df (2-sided)
= 3*3= 16
55
Calculated value = 87.677
Z=87.677>16.919
INFERENCE:
Since the calculated value is greater than the tabulated value, we accept the
alternate hypothesis and hence there is a relationship between the source of drinking water
at home and Preferred source selected for drinking water.
56
ONE-WAY ANOVA CLASSIFICATION
There is a significance difference between the brand of mineral water prefer and
popular brand.
There is no significance difference between the brand of mineral water prefer and
popular brand.
Descriptives
57
Test of Homogeneity of Variances
Levene
Statistic df1 df2 Sig.
82.909 5 60 .000
ANOVA
Sum of
Squares df Mean Square F Sig.
Total 4.621 65
58
Calculated value = 15.727
INFERENCE:
The calculated value of F is greater than the tabulated value. Hence, we reject the null
hypothesis and conclude that there is no significance difference between the brand of mineral
water prefer and popular brand.
59
ANALYSIS USING KARL PEARSON’S CORRELATION
Correlation analysis is the statistical tool used to measure the degree to which two variables
are linearly related to each other. Correlation measures the degree of association between two
variables.
There is positive relationship between the choice of drinking water when travel and
prefer bottled mineral water.
There is negative relationship between the choice of drinking water when travel
and prefer bottled mineral water.
Correlations
choice of
drinking
water when prefer bottled
travel mineral water
N 150 121
N 121 121
60
𝐍∑𝐗𝐘 − ∑𝐗∑𝐘
𝐫=
√𝐍∑𝐗 𝟐 − (∑𝐗)²√𝐍∑𝐘 𝟐 − (∑𝐘)²
r=.545
INFERENCE:
Since r is positive, there is positive relationship between the choice of drinking water
when travel and prefer bottled mineral water.
61
CHAPTER 4 SUMMARY AND CONCLUSION
4.1 FINDINGS
50% respondent’s reason for choosing the purified drinking water is health
consciousness
90% of respondents who are using bubble tops for purified drinking water only and
they are brand specific
49% of respondents prefer popular brand bubble top for brand name
43% of respondents are paying 30 rupees for their 20-liter bubble top can
Most of the respondents prefer popular brand RO machine for brand name.
Most of the respondents are using bottled drinking water during travel.
Most of the respondents are using bottled drinking water during travel
Most of the respondents are using a popular brand for its quality rather for brand
value.
Most of the respondents are saying that the price of a mineral water bottle is Rs.20.
Most of the respondents are prefer 15 RS as a price for mineral water bottle.
Most of the respondents are satisfied with their favorite brand of water.
62
4.2 SUGGESTION:
1. Private companies involved in mineral water bottle can reduce the price to Rs.15/-.
Special efforts need to be taken to reduce the cost of the mineral water bottles to
improve the overall sales and compete with the Government brand of water
3. Government can subsidize the cost of the RO machine to enable every citizen to get
purified water at their home itself
4. As brand affiliation is more in Central and East Chennai as it has more financially
upper class population, all the branded companies can increase their promotion in
those regions to get more business
5. Bubble tops drinking water cost has to be reduced for the retail customers as they do
for the commercial retail customers. Average cost of 1 bubble top can is only Rs.6 to
8 at the plant. Transportation cost and the profit margin can be reduced to make all the
household retail customers to get the Bubble tops drinking water for less than Rs.20
through mass purchase.
6. Mineral water companies need to implement new technology for machinery installation
and improve their overall technical specifications.
63
4.3 CONCLUSION:
Underrated, yet a priceless and irreplaceable commodity, water could well be the next
big opportunity for investors in emerging markets like India and China. Shrinking supplies of
potable water is a global concern. But global fund houses, which specialise in investments in
the water sector, are betting that countries like India and China — with their rapidly growing
populations — will have to spend heavily in the coming years to ensure clean water for their
citizens
This study has been undertaken to understand the overall retail customer perception
towards the private labeled brands of purified drinking water. For this purpose, responses
from the consumers have been collected and analyzed. Based upon the findings out of the
research, few valuable suggestions like reduce cost, improve technology, more varieties have
been given to the private branded companies involved in purified drinking water business.
64
APPENDICES:
QUESTIONNAIRE
Personal Details
1. Name : ___________________
2. Gender :
o Male
o Female
3. Age : ___________________
4. Educational qualification : ___________________
5. Occupation : ___________________
6. Annual income : ___________________
7. Marital status :
o Married
o Unmarried
8. If married number of children :
9. Place of living :
o Urban
o Rural
10. Address : ___________________
___________________
___________________
___________________
11. Contact number : ___________________
12. Email Id : ___________________
65
Questionnaire
2. Why do you prefer the source selected above for drinking water?
Bisleri Team
Aquafina Others please
specify______________
66
6. What is the Price of your 20 ltr bubble top can?
Rs.80/- Rs.75/-
30 Others please
specify______________
8. If it’s a popular brand, please specify the brand name of your RO machine
Aguaguard Kent
Pure it Others please
specify______________
Rs.13,000/- Rs.16,500/-
Rs. 18,500/- Rs.9,000/-
67
Others, please
specify_______________
14. If it’s a popular brand, then please specify the brand name
Team Aquafina
Bisleri Kinley
Tata water plus Others, please
specify_____________
15. What is the price of 1ltr mineral water bottle you buy?
Rs.20/- Rs.30/-
68
Rs.10/- Others please
specify______________
17. How much would you prefer to spend on a 1ltr bottle of mineral water?
Rs.15/- Rs.20/-
Rs.10/- Others please specify
18. Are you satisfied with your favorite brand of water? Yes / No
Date:
Place: Signature
of the respondent
69
REFERENCES/BIBILIOGRAPHY:
(W.R. Chappell, C.O. Abernathy, R.L. Calderon, and D.J. Thomas – Arsenic exposure
and health effects V, Volume 5: Proceedings of fifth international conference of arsenic
exposure and health effects, July 14 – 18, 2002, San Diego, California).
Nitesh Kumar 2006, “Analysis of marketing strategy of mineral water industry: Research
report Submitted Indraprastha university, elhi”, BLS institute of management, Gaziabad.
Report by Anmol Rohatgi, Gajanan Kulkarni, Heemanish Midde 2008, “Project Report
on Product and Brand management: The Market of Branded Water Bottle Industry with
reference to “BISLERI””, – XIMR, Mumbai.
70