AN ORGANISATIONAL STUDY ON

LAKSHMI WATER PRODUCTS

INTERNSHIP REPORT

Submitted by

SUCHITRA .M.G

Register No: 108001108045

In partial fulfillment for the award of the degree

Of

MASTER OF BUSINESS ADMINISTRATION

in
DEPARTMENT OF MANAGEMENT STUDIES

HINDUSTHAN INSTITUTE OF TECHNOLOGY

(Affiliated to Anna Universityof technology, Coimbatore)

COIMBATORE-641032

OCTOBER2011
HINDUSTHAN INSTITUTE OF TECHNOLOGY

(Affiliated to Anna University Of technology, Coimbatore)

DEPARTMENT OF MANAGEMENT STUDIES

This is to certify that the internship training report entitled

Consumer behavior towards the mineral water

Is the bonafide record of training work done by

SUCHITRA.M.G

(Reg. no: 108001108045)

Of

MASTER OF BUSINNESS ADMINISTRATION

2011-2012

--------------------------------- ---------------------------------

Guide Head of the Department

Submitted for the Internship Training Viva- Voce Examination held on ----------

--------------------------------- ---------------------------------

Internal Examiner External Examiner

3

DECLARATION

I affirm that the project work titled “Consumer behavior towards mineral
water” being submitted in partial fulfillment for the award of Master of Business
Administration is the original work carried out by me. It has not formed the part
of any other Internship Training Report submitted for award of any degree or
diploma, either in this or any other University.

(Signature of the Candidate)

Name of the Candidate

Register Number
I certify that the declaration made above by the candidate is true

Signature of the Guide,

With Name & Designation

4

ACKNOWLEDGMENT

I first and foremost thank to lord god almighty for giving me grace and knowledge to complete
this training work successfully

My sincere and hearty thanks to Dr.V.RAVICHANDRAN, M.E., Ph.D., The Principal,

Hindustan Institute of Technology, Coimbatore, for giving me opportunity to do the training.

I wish to convey my profuse thanks to Dr.K.SAMUVEL, M.com MBA., M.Phil., Ph.D.,

Head of the Department of MANAGEMENT STUDIES and help throughout the training.

I admit my thanks to Dr. S. KOUSALYA DEVI, M.com., M.phil., MBA., Ph.D., Of

Department of Management Studies, Hindusthan Institute of Technology, Coimbatore, for the
continuous guidance to accomplish my training work. And I thank all the other faculty
members of the Department of Management Studies for their valuable support in my internship
training work.

I am deeply indebted to MR. G. ARUN KUMAR, MANAGING DIRECTOR, of Lakshmi

water products Ltd, Periyamathampalayam for giving me the permission and arranged for the
needful help and enabling me to undertake training in their esteemed and reputed organization.
5

TABLE OF CONTENTS

Chapter No

Description

Page No.

List of Tables

List of Charts
I

Summary of Internship Training Report

1.1

Introduction

1.2

Profile of the Company

11

1.3

Organization Chart

19

1.4

Organization Layout

20

1.5

Purchase Department

21

1.6

Production Department

22

1.7
Personnel Department

30

1.8

Marketing Department

32

1.9

Quality Controller

37

1.10

Finance Department

38

1.11

Learning Experience

39

1.12

Conclusion

40

II

Introduction to the study

2.1 Introduction

41
2.2 Objectives of the Study

42

2.3 Scope of the Study

42

2.4 Research Methodology

43

a) Data Collection Method

43

b) Statistical Tools

44

2.5 Limitations of the study

46

III

Review of Literature

47

IV

Company Overview

51
V

Analysis and Interpretation

53

VI

Findings, Suggestions and Conclusion

70

6.1 Findings

70

6.2 Suggestions

70

6.3 Conclusion

71

6.4 Scope for Future Work

72

Bibliography
Annexures
6

List of Tables

S. No

Title

Page No

5.1

Number of respondents using mineral water frequently

53

5.2

Respondent’s choice amongst mineral water and soft drinks

54

5.3
Customer preference in terms of bottle sizes

55

5.4

Price of mineral water

56

5.5

Affect of advertising on purchase

57

5.6

Basis of selling a particular packaged Drinking Water Brand

58

5.7

Increase in bottled water

59
5.8

Availability Of Packaged Water Brand Of Your Choice

60

5.9

Future prospects of mineral water market

61

5.10

Decision to buy a particular Brand

62

5.11

Mineral water is much more hygienic than normal water

63

5.12

Price the companies are charging, is worth the product

64
5.13

Advertising of this product has any effect on your purchase

65

5.14

What is the response of royal choice mineral water in the market

66

5.15

Changes would the customer like to see in our Brand

67

5.16

Kind of service that they get from company

68

5.17

Is royal choice mineral water in your store

69
7

List of Charts

S. No

Title

Page No

5.1

Number of respondents using mineral water frequently

53

5.2

Respondent’s choice amongst mineral water and soft drinks

54

5.3
Customer preference in terms of bottle sizes

55

5.4

Price of mineral water

56

5.5

Affect of advertising on purchase

57

5.6

Basis of selling a particular packaged Drinking Water Brand

58

5.7

Increase in bottled water

59
5.8

Availability Of Packaged Water Brand Of Your Choice

60

5.9

Future prospects of mineral water market

61

5.10

Decision to buy a particular Brand

62

5.11

Mineral water is much more hygienic than normal water

63

5.12

Price the companies are charging, is worth the product

64
5.13

Advertising of this product has any effect on your purchase

65

5.14

What is the response of royal choice mineral water in the market

66

5.15

Changes would the customer like to see in our Brand

67

5.16

Kind of service that they get from company

68

5.17

Is royal choice mineral water in your store

69
8

CHAPTER I

Summary of Internship Training

1.1 Introduction:

Water is the most important necessity for life. The drinking-water needs for individuals vary
depending on the climate, physical activity and the body culture. but for average consumers it
is estimated to be about two to four litres per day. The growing number of cases of water borne
diseases, increasing water pollution, increasing urbanization, increasing scarcity of pure and
safe water etc. have made the bottled water business just like other consumer items.

Almost all the major international and national brands water bottles are available in Indian
market right from the malls to railway stations, bus stations, grocery stores and even at
panwala's shop. Before few years bottle water was considered as the rich people's choice, but
now it is penetrated even in rural areas. This is done through the small scale companies were
they capture the market share of 20-25 percent.

In that Lakshmi Water Products is one of them they are to Provide 100% Customer Satisfaction
through Providing Pleasant, Tasty and Safe Drinking Water to the People with Good and
Quality around a Clock in order to Create Public Appreciation of Safe Drinking Water.

1.1.1 The Packaged Drinking Water Industry-Overview

India is the tenth largest bottled water consumer in the world. In 2002,the Industry had an
estimated turnover of Rs.10 billion(Rs.1,000crores).Today it is one of India’s fastest growing
industrial sectors. Between 1999and 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 evev in a one-room shop, in every medium and small city and
some prosperous rural areas there are bottled water manufactures.

Despite the large number of small producers, this industry is dominated by the big players –
Parle Bisleri, Coca-Cola, PepsiCo, Parle Agro, Mohan Meakins, SKN Breweries and so on.
Parle was the first major Indian company to enter the bottled water market in the country when
it introduced Bisleri in India 25 years ago. The total annual bottled water consumption in India.

1.1.2 Segmentation

The mineral water market is segmented according to the type of consumers:

9

1.Foreign Tourists

Foreign tourists have been the main consumers of the mineral water as they face a lot of
digestion problems due to different food habits.

2.Domestic Tourists

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

3.Health/Fashion Conscious

Like soft drinks, drinking mineral water is also considered fashionable by some people.The
mineral water consumer is mainly in the age group of 20-35 years and is an educated middle
class person. This is also the segment of fruit drinks, which have usually been positioned as fun
and health drink for young adults.

The mineral water is also segmented along pack size:

One litre bottle:

This is meant to spell safety and security for consumers. It is positioned on a prestige platform
for the achiever segment-who like to make a fashion statement by drinking mineral water. This
segment gets the maximum sales.

500ml bottle:

This size has been introduced in the market to target the individual and local travellers.
PET bottles:

The size of the PET bottles varies from 10 to 20 litres. These are mainly for institutional sales
(Wedding parties, Hotels, Corporate, etc.) DISTRIBUTION

1.1.3 Distribution Channel:

Most producers do not sell their goods directly to the final users. Between them stands a set of
intermediaries performing a varity of functions. These intermediaries constitute a marketing
channel.

"Marketing channel are sets of interdependent organizations involved in the process of making
a product or service available for use or consumption".- ByPhillip Kotler

Marketing channel decisions are among the most critical decision facing management. The
channel chosen intimately affect all the other marketing decisions. Intermediaries normally
achieve superior efficiency in making goods widely available and accessible to target markets.
Through their contacts, experience, specialization, and scale of operation, intermediaries
usually offer the firm more than it Jar achieve its own.
10

According to Stern and El-Ansary ”Intermediaries smooth the flow of goods and services. This
procedure is necessary in order to bridge the discrepancy between the assortment of goods and
services generated by the producer and the assortment demanded by the consumer. The
discrepancy results from the fact that the manufacturer typically produces a large quantity of a
limited variety of goods, whereas consumers usually desire only a limited quantity of a wide
variety of goods.”

M C

M C

M C

Part (a) shows three producers, each using direct marketing to reach three customers. This
system requires nine different contacts.

M
C

C
Part (b) shows the three producers working through one distributors, who contacts three
customers. This system requires only six contacts. In this way, intermediaries reduce the
number of contacts and the work.

M=Manufacturer, C = Customer, D=Distributor

Channel Function And Flows: A Marketing channel performs the work of moving the goods
from producers to the consumers. It overcomes the time, place, and possession gaps that
separate goods and services from those that need or want them. Member of the marketing
channel perform a number of key functions:
11

They gather information about the potential and current customers, competitors, and other
actors and forces in the marketing environment.

They reach agreement on price and other terms so that transfer of ownership or possession Jar
be affected.

They place order with manufactures.

Theyacquire funds to finance investors at different levels in the marketing channel.

They assume risk connected with carrying out channel work.

They provide for buyer’s payment of their bills through banks and other financial institutions.

1.1.4 Level For Distribution:

The make-up of the channels of distribution for consumer products depends upon the no, of
middlemen used. The simplest channel of distribution is ZERO STAGE marketing channel in
which there is direct contact between the producer and the ultimate consumer or user.

The one stage marketing channel contains one selling intermediary who may be retailer in case
of consumer products as a sales agent or broker in case of industrial products.

The two stage marketing channel contains two intermediaries, namely wholesaler and retailers.
The third stage marketing channel contains three intermediaries- agent, wholesaler and
retailers.

Retailer

Manufacturer

Consumer

Wholesaler

Retailer

Agent

Wholesaler

Retailer

(level of distribution)
12

1.1.5 Factors In Choice Of Distribution Channel

Distribution channels are an important part of the 'marketing-mix' of any business enterprise.
Selection of appropriate distribution channel is very important because several elements of
marketing mix like price and promotion are closely interrelated with and inter-dependent on the
distribution channels. A large number of Middlemen are available through which a product Jar
be distributed. Each middleman involves some cost that enters into the price of the product that
the ultimate consumer has to bear. If the wrong choice of distribution in made, it will lead to
increase in the distribution cost, which will lead to either lowering down of profits or
increasing the cost of the product to the customer.

cost
Promotion

Choice of

Distribution

Cost to the

Channel

ProductPrice Customer

Profitability /
Thus, the choice of the appropriate channel of distribution is not a simple job. While taking
decision in this regard, TOP N TOWN has considered the following factors:-

1.Market considerations

2.Product consideration

3.Company considerations

4.Distributors considerations

Market

Product

Company

Distributors

Consideration

Consideration

Considerations

Considerations
Consumer or

Unit Value

Volume of

Availability of

Industrial Market

Product Value

Prduction

DesiredMiddlemen
No. of Potential

Standardized

Financial Resources

Financial Ability

customer

Product

Experience and

Attitude of

Size of order

Technical Nature

competence of

Middlemen
Buying habit of

Management

Sales Potential

Bulk and Weight

customer

Service provided by

Cost

Geographical

Perishability

the channel
Competitiveness

concentration of

Desire for control of

market

channels

and Legal
CHOICE OF CHANNEL OF DISTRIBUTION
13

1.1.6 Intensity Of Market Coverage :

The determination of number of middlemen to be employed or the intensity of distribution is an

important problem after the choice of the channels of distribution. In this respect, a
manufacturer may use anyof the three alternatives, namely;

Intensive Distribution :

A manufacturer following the policy of intensive distribution tries to get maximum exposure
for his product by having it sold in every outlet where final customer might look for it. The
policy of intensive selling is ordinarily adopted for the marketing of convenience goods such as
toothpaste, soap, cosmetics, and food products that the ultimate consumers wish to purchase at
the most convenient locations.

Selective distribution

Selective distribution may be carried on both at the wholesale and retail levels. A manufacturer
following selective distribution policy will choose only a few middlemen to handle his roducts.
He will select only such middlemen who are likely to sell his products in large quantities. This
policy is successfully adopted in case of specialty goods and accessories.

Exclusive distribution :

Exclusive distribution refers to the agreement between the manufacturer and a middleman
under which the manufacturer grants exclusive rights to sell his product in the territory
specified in the agreement to the particular middleman. The middleman acting as the exclusive
dealer agent .

PHYSICAL DISTRIBUTION:
Physical distribution of goods and services is an important element of distribution strategy of
any firm. Physical distribution strategy is concerned with the actual storage of products after
their consumption, and also their transportation to the consumers or actual users.The physical
distribution activities, namely storage, transformation and inventory control are performed by
the producers and the middlemen. These activities must be performed efficiently because of
their heavy weight age in the total costs. The cost of physical distribution rank third in the total
cost of goods and are exceeded only by costs of raw material, and labour.Economies achieved
in physical distribution of goods will go a longway in reducing total costs and increases profits.

1.1.7 Physical Distribution Decisions:

There are several factors that the company has to take into consideration while deciding about
the appropriate mode of distribution.

1. Optimum mode of distribution

The factors to be considered include the relative costs of the alternative modes oftransportation,
speed, reliability and appropriateness, keeping in view the product attributes.
14

2. Mode of distribution

A company may decide to own a fleet of delivery vehicles or appoint an outside transport
company. Alternatives are to be evaluated talking into account the cost of capital in case of
company owned vehicles and the cost of managing the fleet and the charges to be paid to
outside transporter.

3. Location of warehouses

One important consideration in the context is the nature of product being sold.This need a
comprehensive organizational structure involving a number of company depots, field staff and
an elaborate system of physical transportation of delivery vans, either company owned, leased
or contracted out to an outside contractor.

4. Inventory decisions:

Bulk of the total distribution cost, which generally account for ten to twenty-five percent of the
product costs, is incurred on the physical distribution and cost of holding inventories.Thus,
very careful attention has to be paid on how much inventory should be maintained, of what
items and where.

5. External distribution agency:

A firm may decide that because of resource constraints or lack of in- house expertise,it would
like to concentrate on production and leave the task of distribution to an outside agency.
15

1.1.8 Life Cycle Of The Industry

Here 1990 was selected as base year and from 1990 sales in bottled water has increased year by
year but not that much level to 2004-05 so this covers under introduction stage of bottled water
industry. After increase in awareness among people and known side effects of non purified
water, people have moved from tap water to bottled water and this change has increased sales
of bottled water in market. Until 1992, the demand for bottled water in India was mostly
limited to foreign tourists, corporate meetings, conferences, etc. The introduction of bulk
packaging extended the market to new and numerous consumers. In this period firms focus on
branding and patenting for maintaining right to produce played an important role.

Exponential Increase In Demand Of Bottled Drinking Water

1990-2015

Year

Million Cases

1990-91

2.2

1991-92

2.6

1992-93

3.5

1993-94

4.7

1994-95

6.5
1995-96

8.5

1996-97

11.5

1997-98

15.5

1998-99

20

1999-2000

26

2000-01

33

2001-02

44.5

2002-03

55.6

2003-04

68.15

2004-05

82

2005-06

97

2006-07

112.85

2007-08

129.85
2008-09

146.8*

2009-10

164.45*

2014-15

265*

Estimated Project(Prediction)

(Source :india stat.com)

After 2005-06 bottled water sales increased in market and it showed growing stage of industry,
because people started using bottled water for status and for health safety. Now in 2008 bottled
water industry grew at a rate of 38% so its sales increased faster as compared to past year so
that the industry came under growth stage. Maintaining existing features and adding new
features to product was seen here, broader audience was available for industry product .
16

(Source-Advertising express May 2008)

Consumer Habits & Practices

Consumers are growing more health conscious and more careful of their drinking habits.
Brand loyalty is very low as all the products taste the same so they can just any product which
is on the shelf, same as that of soft drinks and fruit beverages.

Availability in the chilled form and brand awareness plays a crucial role in purchase decisions.

While there is no aversion to consumption of mineral water by any age group, this product is
mainly consumed by the people in the age group of 20-35 years who have less attraction of soft
drinks whereas youngsters look in for soft drinks and fruit beverages to quench their thirst.

Visibility is another factor that should be taken care by the companies as consumers are not
very brand loyal and consume whatever is in front of them.

Consumers often drink bottled water as an alternative to tap water. They think it taste better (no
chlorine taste) and perceive it to be safer and of better quality. They also look for security: food
scandals in industrialized countries and water-borne diseases in developing countries greatly
influence consumers’ attitudes. Consumers buy Bottled water to feel well and to lose weight.
Bottled water s perceived as a healthy alternative to other beverages. Thus, for the aerated
beverages bottled water offers a potential threat.

Moreover, Increasing urbanization, causing declines in tap-water quality, can also explain the
popularity. Because it is untreated, natural mineral water is perceived as “natural” by city
dwellers looking for genuine products. Higher living standards and auto usage enable people to
easily bring home more and heavier bottles of water. At the office, a bottle of water is now a
common sight on the desk, next to the computer and the telephone. Drinking bottled water is a
sign of a rise in the social scale. Above all, bottled water has become a huge marketing success.
17

1.1.10 Swot Analysis Of The Indian Packaged Drinking Water Industry

Strengths

The industry is growing @40%

In India the market is huge & untapped

Growing awareness among the people about the importance of mineral water

Weaknesses

Many players entering in the race

Any local person can start manufacturing.

Rural population is not using the packaged water

Not very economical.

Quality not properly maintained.

Opportunities
Sustained market growth increase in coming years.

Literacy rate growing and hence the awareness of safe drinking water to avoid the diseases.

Huge population &untapped market.

Threats

Many substitutes available.

Too many players will dilute the market & the profit margin.
18

1.2 Profile Of The Company

Established in the year 2009, “Lakshmi water products” is one of the growing reputed
manufacturing and supplier of a wide range of Packaged Drinking Water. Besides, they
produce mango fruit juice based on the requirement of the needs. Lakshmi water products is
concentrated only on the dealer marketing, but not on the direct marketing. Their range of
products is procured from reliable and authentic demand of the market. They process these
products using cutting edge technology in order to deliver pure and hygienic products.

With the support of the dexterous and experienced team of professionals, they are able to
provide services related to direct deliver to thedealers. Moreover, theyoffer customized
packaging of our products as per the requirements and to meet their varied expectations. In
addition to this, they select the dealers on the basis of their capability of payments made by
them. They allow various payment options through cash, cheque and DD on varied payment
terms such as D/A and D/P. Owing to the ethical business practices and transparent dealings,
we have been able to establish cordial relationships with all dealers.

Mission

To Provide 100% Customer Satisfaction through Providing Pleasant, Tasty and Safe Drinking
Water to the People with Good and Quality around a Clock. To Create Public appreciation of
Safe Drinking Water.

Vision

Our Vision is a Country Where all People have Access to Safe and Clean Drinking Water.

Quality policy
Lakshmi water products Quality policy is to achieve customer satisfaction and dealers retention
by meeting their requirement in terms of stringent quality standards, hygiene and availability.

To achieve and maintain a level of quality which enhances the Company's reputation among
customers.

We commit to continual improvement in every aspect of our business through better

involvement of our employees and suppliers.

We have created an environment where each employee contributes to all aspects of our
business processes. We are committed to strive for continuous improvement to meet customer
satisfaction.
19

Company’s Quality policy adheres to check on each stage of production from raw material
purchase to finished goods handling.

Each department meticulously adheres to the prescribed tests and inspections. Also each
stage in the production process seeks quality inspection from the Quality Manager to meet
the BIS standards on an monthly and yearly basis.

They have implemented an extensive Quality Management System, supported by

management, to establish and maintain appropriate quality objectives, and to support this
Quality Policy.
20

1.2.1 Company Details

Company Name

Lakshmi Water Products.

Address

1/193,Bilichi

Post,Periyamathampalayam,

Mettupalayam

Road,Coimbatore-641 019

E-mail:

lakshmiwaterproducts@gmail.com

arunkumar1609@gmail.com

Products/services Offered

Royal choice drinking water and mango

fruit

Business Type:

Manufacturing/Supplier

Industry Type:

National

No. Of Employees:

10-22 People

Year Established:

2009

Managing Director:

Mr. G. Arun Kumar

Payment Terms:

D/A, D/P

Payment Mode

Cash, Cheque, DD
Shipment Mode

Road

Brand Name

Royal Choice

Salient Features:

Assured quality

100% pure

Hygienic

Highly nutritious
21

1.2.2 Product portfolio

They are involved in supplying and trading a qualitative range of Packaged Drinking Water .
The packaged drinking water is processed using hi-tech machines and packed in hygienic
packaging material. Apart from this, they also produce mango bottled fruit juice based on the
requirement bases with the brand name “MANGO FRUITY”.

Following are the varieties of products that are manufactured:

Package Bottle varieties:

Factory

Products

20ltr

5ltr

2ltr

1ltr

½ ltr

500ml

water

Bottle
Bottle

Bottle

Bottle

Bottle

Bottle

Pouches

20 litreBottle

They offer a highly purified Distilled Mineral Water with added minerals and oxygen in 20
Liter Jar. Passed under most sophisticated and advanced purification processes, our Distilled
Mineral Water is free from any solid or bacterial contamination. Our 20 liter jars are
extensively used in homes, offices, schools, hospitals and other establishments.

500ml Mineral Water Bottle

These transparent bottles are made of premium qu ality plastic that keep the water safe and are
easy to dispose. Fresh water remains handy with the help of these bottles during journey.
Moreover, these bottles also find use in occasions, functions, meetings, seminars and
conferences. As per the requirement, we can deliver these bottles at clients' end within the
desired time period.
22

And they are engaged in offering a wide range of Packaged Mineral Water (500ml) to our
distinguished clients. Thier range is procured from certified and reliable vendors and is
available at affordable prices. The products are sprayed with ozone water. We also provide
customization services and can alter the bottle sizes as per the client’s specification.

One litre mineral water

Our company offers a wide range of Mineral Water (1ltr) to our esteemed clients. Made in compliance
with international standard, these products are highly appreciated for its hygiene packaging of bottles
and quality of mineral water, Apart from this, our range of product go through UV treatment and RO
process. We offer these products in various sizes according to customer’s requirement at industry
leading prices.

Water Pouches
We are proficient in offering our clients with Water Pouches in the pack of 250ml. These
pouches are extensively used in public places, commercial areas and for personal purposes. The
water in these pouches is apt for drinking and rigorously tested on varied parameters. The
quality packaging material is used to pack the clean water.
23

Mango varities:

Mango

fruity

500

250

200

ml

ml

ml

Advantages of Packaged Drinking Water:

Safe to consume or use without risk of immediate or long term har m.

Useful in preventing dehydration and sustaining health.

Consists of high concentrations of dissolved minerals or electrolytes.

Cleanses the body and rids it of harmful toxins as well as breakdown waste material.

Balances the electrolytes found in the body.

Bureau of International Standards (BIS) Certification offered by BIS under code IS:14543 is
an endorsement to the top quality of our product. We have designed our packaging system in
such a way that it keeps the water preserved for a quiet long tim e. Food graded PET & Poly
Carbonate materials more than 85% transparency is used for packing Royal choice water as per
BIS.

The manufacturing unit has the capacity of producing 500 litres of purified water per day and
the manufacturing unit is handled by professionally skilled chemists, micro-biologists and
experienced technicians.
24

Conformity of packaging materials to Indian standards:

The bureau of Indian standards have formulated standards for packaging materials used in
contact with drinking water.The plastic materials used should conform to the relevant Indian
Standards.The list of the standards is given below:

IS:10146-1982

Specification of Polyethylene for its safe use in contact with food stuff and drinking water.

IS:10141-1982

Positive list of countries of Polyethylene for its safe use in contact with food stuff and drinking
water.

IS:12252-1987

PET(Polyethylene terephthalate)/PBT(Polybutadeine terephthalate) for safe use in contact with

food stuff and drinking water.

IS:12229-1987

Positive list of constituents of PET/PBT for its safe use in contact with food stuff and drinking
water.

IS:10910-1984

PP and its copolymer for its safe use in contact with food stuff and drinking water.
IS:10909-1984

positive list of constitutes of polypropylene in contact with food stuff, pharmaceuticals, and
drinking water.

IS:10148-1982

Poly Vinyl Chloride and its co-polymer for its safe use in contact with food food stuff and
drinking water.

IS:10151-1982

Poly Vinyl Chloride and its co-polymer in contact with foodstuffs, pharmaceuticals and
drinking water.

IS:10142-1989

Styrene polymers for its safe use in contact with food stuff, pharmaceuticals and drinking water.
25

IS:10149-1982

Styrene polymers in contact with ood stuff, pharmaceuticals and drinking water.

IS:12248-1988

Positive list of constituents of Nylon 6 polymers for its safe use in contact with food stuff and
drinking water.

IS:11705-1986

EAA co-polymer, positive list of constituents for safe use with food stuff and drinking water.

IS:9833-1981

List of pigments and colourants for use in plastic in contact with food stuff and drinking water.

The standards basically specify requirements of the basic resin,colours and pigments,catalysts,
emplsifying agents ,residual monomers,antioxidants ,other additives and the overall migration.
26

1.3 Organisation Chart

Manager Director

PRODUCTION

MARKETING

QUALITY

FINANCE

PURCHASE

CONTROLLER

DEPARTMENT

DEPARTMENT
DEPARTMENT

DEPARTMENT

Supervisor

Chemist Microbiologist Accountant

Technical operator Non-Technical operator

27

1.4 Organization Layout

Water purifier area

Filling water

Microlab
Labeling

Tap fitting

Chemical
lab
Finished

office

products
warhouse

Raw

material

warhouse
Water
Tanks
28

1.5 Purchase Department

Operations:

The Company’s Operations department is responsible for Materials Purchase & Production
process.

Materials Purchase:

It is most vital and initial link to the production cycle. It is responsible for the purchase of the
right material at effective cost and of right quality at the right time. The purchase function
begins on the release of the Bill of Material (BOM) from the accounts department and ends
only after the Packaged Drinking Water is fully bottled and dispatched.

Materials purchase

Bill of materials

Operations

Department

Production process
Warehouse
29

1.6 Production Department

Raw materials

Lakshmi water Products is located at the site where require amount of water is available. This
has made the pumping of water for production as made easy.

Production Process

The first step for setting up a water purification plant is the analysis of source of water. After
the chemical analysis, the specifications of the purification plant are set. In the purification
plant, source water is stored in the feed water tank, passes through the sand filter for
preliminary water filtration.

Water then passes through the dosing pump-I where chlorine is added to kill the germs in the
water. After the chlorination, water passes through carbon filter. It helps in the maintenance of
proper odor and taste of the water. It also removes chlorine from water.Water is then passes
from dosing pump-II, where Sodium Meta Bisulphate is added. It helps in dechlorination of
water.

Water is filtered next and passes through dosing pump-III, where anti scallant is added. It
prevents scaling of membrane from calcium, magnesium and biological growth. Water then
passes through reverse osmosis module. This stage of the process makes water clear from all
the contaminations and minute particles. Water then passes through dosing pump-IV, where
minerals are added for taste development.

After this stage, water undergoes Ultra Violet treatment to avoid any contamination from
bacteria and other micro organisms. Water then passes through pipe for washing, filling and
capping plant. Here water is filled into bottles. After filling bottles are taken into the warehouse
ortransported to the dealers. The complete process flow diagram is as under.
30
31

Cost of producing 1 Litre Branded bottled drinking water

Cap cost

Rs 0.25

Bottle cost

Rs 1.5 – Rs 2.5

Treatment cost

Rs 0.1 – Rs 0.25

Label cost

Rs 1.5 – Rs 0.25

Carbon cost

Rs 0.50

Transportation cost

Rs 1.0 – Rs 0.25

Others

Rs 0.50

Total cost(excluding labour,marketing & tax)

Rs 2.85 – Rs 4.25

Selling cost

Rs 10 -12

Stages involved in the Plant are mentioned below:

Bore well Water

Raw Water Storage Tank Chlorine Dosing

Raw Water Pump

Pressure Sand Filter

Activated Carbon Filter Micron Cartridge Filter Antiscalent dosingSystem High Pressure Pump
Reverse Osmosis System 1 micron Filtration

0.5 micron Filtration Storage (SS Tank)

Product Water Transfer Pump Storage (SS Tank)

Ultra Violet (UV) Filtration Ozonation

Water Filling

Capping

Inspection

Labeling Dispatch of Product

32

Bore Well Water

The main raw material for this product is Raw water. This is taken from our own bore well.
And it is transferred from the source to the raw water storage tank. After that this raw water is
under gone for testing of basic parameters like

Total Dissolved solids

Total Suspended Solids

Chlorides

Calcium and

Magnesium etc.

Raw water Storage tank

This is a storage tank made up of HDPE (Sintex) to store the Raw water which is carried from
the source. The capacity of the tank is 5000 litres and 6 nos. ie. 30000 liters of total capacity.

Raw water pump

This pump is used to transfer the raw water from the storage tank to the Pressure sand filter,
Activated carbon filter and micron filter. The operating pressure is 3 – 3.5 Kg/cm2. The flow
rate of the pump is about 6000LPH. The delivery size of the pump is about 11/2”.

Chlorine Dosing System

This chlorine dosing system is carried out to remove the bacterial contamination. For this
Sodium hypo Chlorite will be dosed through the automatic dosing system.
Pressure Sand Filter

This contains various grades of sand. This is used to filter the dirt and suspended solids which
are present in the raw water. After a certain period this sand bed has to backwashed to remove
the dirt and the suspended particles which are filtered during the process.

Activated Carbon Filter

This contains various grades of sand and Activated carbon. This is used to remove the odour,
Free chlorine and colour which are present in the raw water. After a certain period this bed has
to backwashed to remove the dust which is filtered during the process.

Micron Catridge Filter

This is used to filter fine dust which is present in the water. The 5 micron filter is used for this
process.
33

Anti scalent dosing system

This is the system is used to dose the antiscalent chemical to the water. This is the base
component of Sodium Hexa Meta phosphate. This is used to avoid the scaling of membranes
during the process.

High Pressure Pump

This is used to pump the water at high pressure to feed the filter water to Reverse Osmosis
system. By passing the water at high pressure the separation of pure water and salt water
occurs. The operating pressure is about 10 – 15 kg/cms. The operating pressure is depends upon
the nature of the water. The flow rate of the pump is about 6000 LPH. The power consumption
of this pump is about 7.5 HP.

Reverse Osmosis System

This is the main function of the water purification system. The poly amide, spiral wound
membranes were used. The membranes are imported. The recovery of this process is about 70 –
80 % depending upon the quality of the raw water. By passing the water at high pressure the
filtration of the pure water and salt water occurs. The salt water were coming out through reject
port. The pure water is collected in the central port of the membrane and it is coming out from
the product port.

After this process the maximum total dissolved solids will be removed. After that this water is
under gone for testing of basic parameters like

1.Total Dissolved solids 2. Total Suspended Solids 3. Chlorides

4. Calcium and

5. Magnesium etc.
1 micron and 0.5 micron filtration

This is used to filter the pure water as per the ISI norms. Filter cartridges were used during

the process. For this 1 & 0.5 micron filters were used.

Storage tank (SS)

This is used to store the purified water before UV treated. The capacity of the tank is 3000
litres.

Product water Transfer Pump

This is the stainless steel pump which is used to transfer the pure water to the over head tank.
The flow rate of this pump is about 3000LPH. The power is about 3 HP>
34

Storage tank (SS)

This is used to store the purified water before UV treated. It is kept in the 20 feet above the
ground level. This is used to supply the water for UV and filling. The capacity of the tank is
3000 litres.

UV (Ultra violet) filtration

This is the filtration of the pure water to remove the bacterial contamination. As per the ISI
norms we have to install and operate this system. The UV lamp will used to remove the
bacterial contamination.

Ozonation

This is the filtration of the pure water to remove the bacterial contamination. As per the ISI
norms we have to install and operate this system. The Ozone generator will used to remove the
bacterial contamination. By passing the electric the oxygen will be converted into Ozone.

Water filling

The empty can will be collected and washed thoroughly and after inspection these cans will be
filled with water. Before filling to the cans the water will be tested at the laboratory to analyze
the parameters like

1.Total Dissolved solids

Total Suspended Solids

Chlorides

Calcium and

Magnesium

COD – Chemical Oxygen Demand

BOD – Biological Oxygen Demand etc.

Capping

After filling of the cans, the caps arefixed for all thecans.

Inspection

After completion of all the above process, each and every can has to check thoroughly for
physical inspection of the product.
35

Labelling

After filling and capping, the sticker has to be sticked for all cans. This should contains

the name of the brand

where it is manufactured

ISI norms

manufactured date

expire date

Loading and Transportation

After completion of the process the cans will be stored and loaded for the dispatch of the
product to the dealers and customers.
36

Machinery

Manufacturing plant:
Fully automatic form, fill & seal machine with gravity filter system to pack various free flow
liquids like Milk, Mineral water, Butter milk, Juices, Liquor etc. in polyethylene pouches

Features:

High accuracy

Easy to operate

Low power consumption

Filling range : 200ml to 1000ml

Speed :

Mechanical model : 1200 to 2100 Pouches / hour

Pneumatic Model : 2500 to 5000 Pouches / hour

Packing Material: Polyethylene film

37

1.7 Personnel Department

Man power in lakshmi Water Products:

Man power planning may be defined as a strategy for the procurement development allocation
and utilization of an enterprise’s human resources.

The following table shows the overall strength of permanent employees in the company .

Technicians

Accountant

Supervisor

Workers

Chemist

Microbiologist

Packaging

Category of employee

No. Of employee
Technicians

Accountant

Supervisior

Workers

Chemist

Microbiologist

Packaging

2
Recruitment

Recruitment is the process of searching for prospective employees and stimulating encouraging
them to apply for jobs in an organization.

In Lakshmi Water Products, there is no recruitment policy. Recruitment is made based on the
requirement of manpower. It depends upon the work load and the order that they receive based
on that they select the employee in each sections like filling, labeling, packaging.

Recruitment process

Locating and developing the sources of required number and type of employees.

Identifying the prospective employees with required characteristics.

Evaluating the effectiveness of recruitment process.

38

Selection:

Selection means choosing the right employees at the right time. And also selection is the intention
to choose the best qualified and suitable candidates for each unfilled job.

The industry selects the employee based on the ducation qualification and their experience level
in packing mineral water plant.

Selection procedure:

Each and every candidates are selected by the managing director.They are being undergone
training sections based on that suitable candidates are being selected.

Induction:

When a new employee joins an organization, he is completely a stranger to the people work place
and the work environment. Therefore, he is likely to feel insecure, shy and nervous. In the
absence of information and support there is likely to be anxiety and fear in his mind.

After the process it is selection, the candidate is inducted about the general details of the industry
its business activities, standing orders, quality policies, welfare and safety measures and industrial
relations etc. the personnel officers arranges the schedule of induction training which will be sent
to the concerned department and training will be given by them.

Welfare Facilities

Cleanliness:

All the plant is being kept clean and free from all dust and from dirt. It is maintained with proper,
periodical washing of each part of the plant and tested regularly so that the bacteria does not the
area.
Environment:

Lakshmi water products are located in area where the place is fully filled by pleasant air good
atmosphere to work.

S.No

Timings

1.

9.00am to 1.00pm

Working Hours

2.

1.00pm to 2.00pm

Break

3.

2.00pm to 4.30pm

Working Hours
39

1.8 Marketing Department

Marketing is the main functioon of all organisation .It determines the opportunity of the future
business. Lakshmi Water Products is beening Marketed with the Brand name ”ROYAL
CHOICE”.

They follow certain marketingg functions like

Sales Forecasting

Dealers requirement

Market Research

Sales Analysis

Price Analysis

Sales Reporting

Inventory Maintainace

Royal choice packaged bottle are marketing mainly in three districts like Salem, trichy,
Coimbatore. From these places with the help of dealers the products are distributed to
surrounding areas.
MARKETING

SALEM

TRICHY

COIMBA TORE

Mettur

Pattukkotai
Pollachi

Dharmapuri

Thanjavur

Udmalaipettai
Attur

Asoor

Tiru pur

Mettupalayam

Namakkal

Neyveli

Karur
40

The manufacturing unit in Coimbatore, market their products to nearby places like pollachi,
Udumalaipettai, Tirupur, Mettupalayam. These are the some of the main places that the
products are being covered. All these are based on the requirement that are demanded by the
dealers and the consumer.

Marketing Mix

According to Philip kotler “marketing mix is the mixture of controllable marketing variables tat
the firm uses to pursue the so ught level of sales in tha targeted market”

In simple words marketing mix is the combination of four basic elements / ingredients under
one head, 4Ps i.e, Product, place, price, and Promotion.

Marketing mix

Product promotion

Price Place
Product:

Royal Choice values their customers & therefore have developed 7 pack sizes based on the
requirement of the dealers.They presently have 20ltr bottled can, 5ltr bottled can ,2 ltr,1 ltr,1/2
ltr , 500ml bottles and mini water pouches.
41

Quality Assurance:

ROYAL CHOICE Mineral Water contains minerals such as magnesium sulphate and
potassium bicarbonate which are essential minerals for healthy living. They not only maintain
the pH balance of the body but also help in keeping you fit and energetic at all times. The
casing tube itself is protecting with stainless steel mesh to give a preliminary filtration to the
water. Ultra Filtration gives reduction in turbidity and adds sparkle activated carbon purifier to
remove color and odour in water.

Reverse osmosis membrane has porosity of less than 0.01 micron the process renders water free
0 micro organisms and also reduce dissolved solids. To ensure Royal Choice packaged
drinking water is held safe free from contaminations, ultraviolet treatment and ozonisation
process is carried out. Ozone is unstable trivalent oxygen, a very powerful bactericide with no
side effect, as it disintegrates into oxygen within couple of hours.

Sterilization effects of ozonised water continues even after water is packaged, thereby ensuring
safeth of Royal choice up its final packing. To ensure high quality of packing materials,
products are hand tested before they are dispatched for dealers.

Good Manufacturing Practices are stringently followed at all times. Processing is religiously
monitored at every stage. Testing source water, processing parameters, microbial quality,
packaging material integrity and finally, shelf life studies, forms an integral part of quality and
safety assurance plan.

Quality checking:

Quality is checked by sampling method as a batched test at every stage of manufacturing even
quality of bottle is also checked before actually using.

Production: 500 ltr bottles per day.

Price:

Price plays as very important role as it is the only P which helps in getting revenue:

• Firstly one can explain the factors which affect the pricing decision ie.

Price is directly related to

Demand

Competition

Break-even Point.

• Secondly, if there is a novel product or almost no competition, one can go for higher pricein
the beginning, make good profits to face competition and innovations at a later date.
42

However since the competition level for packaged drinking water as been in the increasing rate.
Lakshmi water products are being undergoing skimming price strategy.i.e., at the beginning
stage they are charged less price than the other water local water manufactures.

Per bottle

PRICE(in Rs)

20 litre

60

5 litre

40

2 litre

22

1 litre

15

500 ml

10
pouches

Place:

Distribution Channels followed by LAKSHMIWATER PRODUCTS are :

Manufacture

District

Dealer

Sub

Shop

End

c&f

Dealer

owners

user
From the manufacturing plant the finished bottles are send to the District c&f agent. It means
carrying and forwarding agent, they mainly deal with collecting the products from the
manufacturer and distribute the products to the dealers. Dealers are th ose who act as the
intermediary between the manufacturer and the shop owners. Based on the requirement of the
shop owner they collect the products and deliver it.

Dealers might directly deal with shop owners or they are again divided into sub-dealers. Sub-
dealer come into existence only when there is a need of covering the large areas. At the end
,from the shop owner it goes to the consumer or to the end users.

Promotion:

Positioning : Playing Safe

Target audience : Health and hygiene conscious people

Personality : Guardian, Authoritative, Reliable

43

To keep the company humming and profitable work ,it’s vital to prompt the product to the
consumer and deliver the services. Only through constant exposure will alert potential
consumers who you are and where you are when they need a sign.

Royal choice water bottles are new to the market. They are mainly concentrated in promoting
the products to the nearby places.

Activities:

The only promotional activities done by the Royal Choice is through participating in the Water
expo and the exhibition conducted by various organisation. This is the place where all the
dealers and the companies meet at one place. Comparing to other promotional activities this is
less cost. They have also participated in all types of expo done in national level. Since it is a
dealer marketing. It can be easily done through these activites.

Some of expo that Royal Choice companies have participated in last 2 years are as follows:

WaterExpo 2009- International exhibition& Conference(Mumbai)

Mega Water Expo 2009, Chennai, India.

WaterExpo-Gujrat,2009.

Expo-Conference/water and waste sector 2010.

44

1.9 Quality Controller

Strongly believing in complete customer satisfaction, they offer products with cent percent
quality assurance. They implement effective quality management system throughout the
production process on the basis of which, they are able to manufacture standard quality
products. Moreover, they have established a team of highly qualified and experienced quality
controllers. They contribute in the quality maintenance of products by keeping close eye over
the whole process and also conducting tests for fine-finished products. Every stage of
production is stringently scrutinized under the supervision of quality controllers.

Before the bottle are filled they are sent to lab testing

Chemical lab

Microbiologist
45

1.10 Finance Department

For success of every organization depends upon the effective utilization of its available. It is the
back bone for the business activity. In fact all other department depends upon Finance department
for their successful operation. This department is concerned with the receipt and expenditure of
funds. The finance department is fully computerized using the software like Tally 7.2 version.

Objectives:

Profit maximization is the main objective of this department.

Salary for the staff members wages for the working employees and incentives are calculated and
properly issued by the department members.

They involve in bills to be Tally and data must be entered.

They prepare the Trading A/c, Profit & Loss A/c and Balance Sheet of the Company.

They have the function to the bills payable and receive the bills receivable.

They involve in the budgeting of the purchase and others.

Functions of Accounts Department:

1)Maintaining the records in an orderly manner and chronologically.

Submitting records to the management.

Checking and passing the bills for payment.

Making the payment for wages and salary to staffs and employees.

Records Maintained:

Cash Book and Petty Cash Book.

Bill Record Book.

Purchase Book and Purchase Returns Book.

Sales Book and Sales Returns Book.

Bills Inward Book and Bills Payment Book.

Pass Book and General Book.

46

1.11 Learning Experience

The training experience at Lakshmi water products was very useful and valuable experience for
me. We weretreated in a veryhostile manner, by the employees and also the top level
management of my training organization. They were very tender hearted towards the me, and
provided every material for the project.

Environment was very pleasant for us to carry on our activities, which provided me an
opportunity to understand about the activities that taken place internally and externally in our
concern.

The 6 weeks training at Lakshmi water products also enhanced the knowledge and awareness
to meet the challenges and changes that take place in future.

Instead of getting into theoretical way I had a chance of doing all work in the practical . It gave
me a real feel of managerial skills inside me. It equipped me to cope up with the challenges
faced by the manager in competitive international business.

This study in the organization helped me to understand the organisations changes and culture
and helped me to know the various process in packaged drinking water .
47

1.12 Conclusion

The objective of study in familiar with an organizational environmental and to get an idea
about the function of different departments .It helps me to given an immense knowledge about
the day to day workingactivities of the company.

I learnt the entire processes involved in Packaged drinking water, it was really interesting. I
thank the organization for providing me such an opportunity to undergo my study in their
organization.

The overall analysis is indicating that the company’s progress has mainly attained through
dedication of employees. The effectiveness of its management, their willingness to take
advantage of opportunities and face challenges of changing economic picture, this all
contributes to the very much improved and sound position of company. This is really
appreciable for the devotion and hard work of all the employees of the company.
48

CHAPTER II

Introduction Of Study

Introduction:

Water is the fountain of all life. Sixty percent of our body weight is made up of it. But the

consumption level of mineral water differs based on the age group. One cannot think about life
without water. We are blessed with adequate natural resources of water but increasing
population, alarming rate of global warming and rapid industrialization and 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 and
the result is, scarcity of water. The Water shortage around the world and particularly in the
developing countries has opened new doors for bottled water Industry.

Bottled water is sold in a variety of packages right from 200 ml pouches and glasses, to 330 ml
bottles, 500 ml bottles, to one-liter bottles and even 20- to 50-litre bulk water packs. In terms of
cost the bottled water business in India can be divided broadly into three segments,

1.premium natural mineral water 2.natural mineral water and 3.packaged drinking water

It is obvious to find the bottled water manufacturer in metro cities though it might be running
only in one room or shop, but its surprising to know that at present in many medium and small
villages and even in some of the prosperous rural areas we can find the local manufactures of
bottled water and local brand of bottled water laying with the well known brands on the same
shelf.

Almost all the major international and national brands water bottles penetrated in the Indian
market and are available at right from the malls to railway stations to bus stations to
multiplexes to grocery stores and even at panwala's shop. It has penetrated so deeply in to
market and now it’s become very common to consume bottled water whereas before few years
it was considered as the rich people's choice and fashion to consume bottle 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
49

in rural areas is another significant factor that is likely to play a key role in the development of the
bottled water trade.

2.2 Objectives Of The Study

Through this project my objectives has been to understand the following;

To know about the consumer preference towards the mineral water.

To learn about the various criteria that forces the consumer to change their behavior towards the
bottled water.

To find out which basis dealers ,prefer buying packaged drinking water.

To see whether there is a threat to the mineral water market from water purifiers and soft drinks.

To find the dealers view on the mineral water market and to assess the future prospect of the
market.

Scope Of The Study

In this competitive world, the industrial setting is becoming more profit oriented. The
relation between the customer and the organisation became highly essential. The lack of
customer image and the position about our product in customer’s mind will lead them to
create negative value in market . So it is necessary to find out the negative factors, which
exist in the organization, and then only we would suggest appropriate and relevant solution
in order to overcome the problem of the organization.
50

2.4 Research Methodology Research Design

A research design is purely and simply the framework or plan for a study that guides the
collection and analysis of data. The Survey Research was used in this project, because retailer’s
and consumers feedback was necessary for obtaining the data. Starting a research project needs
a basic preparation regarding the issues related to the topic selected. For this one needs to do
some deskwork. Deskwork includes:

Determining the basic objectives of the study undertaken.

Collection of secondary data related to the topic from Internet, magazines & newspapers.

Studying the market, which one wants to cover.

Analyzing the objective on the basis of information collected by secondary data.

All the above activities at the intial stage of the project must be completed & then the main part
follows.

a) Data Collection Method

Primary data: These are those data which are collected afresh and for the frist time, and thus
happen to be original in character. I have used the questionnaires.

Secondary data: These are those which have already been collected by someone else and
which have already been passed through the statistical process. I have collected it from the
sources like internet, pulished data etc.

Sample Size:
I took 50 consumers as my respondents. They were selected by random sampling method
because in this case systematic sampling is not possible since one cannot say whether a person
is using mineral water or not.

Sample Technique:

Random sampling technique will be used in this research project.

Research Instrument :

For doing the survey research, structure questionnaire with closed-ended and open-ended
questions were used.

Mode of Survey

The mode of survey for the dealers and consumer’s was the filling up of the questionnaires.
51

Preparing the Questionnaire

1.As per the requirement of the project & to achieve the objective both consumer of mineral
water & dealers of mineral water were studied apart from studying about the domestic
packaged drinking water market, Brand Bisleri in detail.

2.For that close and open ended questionnaires for the consumer & for retailer were prepared.

Data Processing

Daily data will be entered into MS-Excel sheets.After the exhaustion of the specified
geographical area this data will be analyzed using simple graphical and tabulation techniques.

Analytical Tools

After collection of data another work necessary for data collector is to correctly analysis that
data. Statistical tools helped me to correctly analyze the data. I used here the software named
Ms EXCEL for analysis of the data. I used following statistical tools:

Hypothesis Testing

Chi-square test will be used when the set of observed frequencies obtained after
2
experimentation have to be supported by hypothesis or theory. The test is known as X test of
goodness of fit and is used to test if the deviation between observation (experiment) and
2
hypothesis may be attributed to chance (fluctuation of sampling).X also enables us to explain
whether ornot two attributes are associated or related to each other.

Statistical Tools

Chi-Square Test Procedure:

1) Set up the null hypothesis that there is no significant difference between the observed and
expected value.

2) We compute the value of CHI- square byusing the formula.

2
CHI-square =X ((O+E)2/E)

O-Observed value

E-Expected value

Degree of freedom=(R-1)(C-1)

Level of significance=5
52

Alignment of primary and secondary data

For the purpose of the market survey, I had designed the research based on primary data. For
the collection of primary data, two structured questionnaire for the dealers and the consumers
were designed.

Secondary data will be used to supplement the primary research and in terms of capacity and
profile of package drinking water industry. We will try to confirm the facts of secondary data
with the primary study related to growth in the industry and lakshmi water products to be
adopted for increasing its sales in the market.

Hypothesis to be tested

An assumption taken to be true for the purpose of argument or investigation is called a

hypothesis. Following are the two types of hypothesis.

Null Hypothesis, Ho – It is an assumption which the researcher tries to disprove ,reject or

nullify.

Alternate Hypothesis, Ha – It is a statement of what a statistical hypothesis test is test is set up

to establish and negate the null hypothesis.

Following are the set of hypothesis established to answer various research problems.
1.Frequency of use of mineral water

Ho: Larger Proportion of people always use mineral water.

Ha: Larger Proportion of people go for an occasional use of mineral water.

Choice of soft drink over mineral water Ho: People prefer soft drink when thristy.

Ha: People like to have mineral water in a thirst condition.

Customer preference in terms of bottle sizes

Ho: 5 ltr and 20 ltr bottles of mineral water are the most preferred once, by the population. Ha: 5 ltr
and 20 ltr bottles of mineral water are not preferred by the population.

Effect of advertising on purchase

Ho: Advertisement doesn’t affect purchase decision of Mineral Water. Ha: Avertisement
affects purchase decision of Mineral Water.
53

2.5 Limitations Of The Study

Any research or study always has some limitations under which this has to be undertaken. This
one too was not an exception. These limitations are poised by the environment some external
and some inherent. This study has been conducted with utmost consideration to the adequacy of
data and quality of information, though as mention earlier the reliance on the sources cannot be
minimized to zero in context of precision. The limitation can be enlisted as hereunder:

The perception level of the respondents. The responses given by respondents were not always
accurate because the respondents gave the response according to their understanding.

Availability of documents as sources of secondary information.

Reliability of information collected from various public information sources such as website
and magazines

Respondents are not willing to fill the questionnaire.

Very often the respondent do not express their true feelings, in such case their habit,
preference, practice, cannot be assessed correctly.

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

Time was a limiting factor for the study

However in spite of these limitations all efforts have been put to make the report correct,
genuine, and fulfilling the objectives of the reports.
54

III CHAPTER

Review Of Literature

Bottled Water

Consistent quality and taste are two of the principal differences between bottled water and tap
water. While bottled water originates from protected sources – largely from underground
aquifers and springs – tap water comes mostly from rivers and lakes.

Another factor to consider is the distance tap water must travel and what it goes through before
it reaches the tap. In compliance with international regulations, bottled water is sealed and
packaged in sanitary containers. If a bottled water product is found to be substandard, it can be
recalled. This can’t happen in case of tap water.

According to regulations in the US, when bottled water is sourced from a community water
system the product label must state so clearly. However, if the water is subject to distillation,
de-ionization or reverse osmosis, it can be categorized that way, and does not have to state on
its label that it is from a community water system or from a municipal source.

Processing methods such as reverse osmosis remove most chemical and microbiological
contaminants.

The Manufacturing Process

Processing and Quality Assurance

The casing tube itself is protected with stainless steel mesh to give a preliminary filtration to
the water.

Ultra filtration gives water reduction in turbidity and adds sparkle.

Activated carbon purifier to remove color and odour in water.

Reverse osmosis membrane has porosity of less than 0.01 micron the process renders water free
of microorganisms and also reduce dissolved solids.

To ensure mineral water is held safe free from contamination, ultraviolet treatment and
ionization process is carried out. Ozone is unstable trivalent oxygen, a very powerful
bactericide with no side effect, as it disintegrates into oxygen within couple of hours.
55

Sterilization effect of ionized water continues even after water is packaged, thereby ensuring
safety of Mineral Water up its final packaging. To ensure high quality of packing materials,
components like caps and bottles are manufactured in-house from resins of quality suppliers.

Good Manufacturing Practices are stringently followed at all times. Processing is religiously
monitored at every stage. Testing source water, processing parameters, microbial quality,
packaging material integrity and finally, shelf life studies, forms an integral part of quality and
safety assurance plan.

Labeling

The Name of the product shall be the appropriate terms as defined. Water containing carbon
dioxide that emerges from the source and its packaged directly with its entrapped gas or from
which the gas is mechanically separated and later reintroduced at a level not higher than
naturally occurring in the water, may bear on its label the words naturally carbonated,
carbonation added or sparkling.

Rules and Regulations

The Bureau of Indian Standards (BIS) has just recently got involved in the process. In
September 2000, the Government of India made it mandatory for all bottled water companies to
get an ISI mark, including imported bottled water brands like Evian and Perrier. The Ministry
of Health and Family Welfare had set a deadline of Mar 29,2001 for complying with the new
norms.

Market Categorisation

The market initially had only one SKU of 1 litre was followed a by a number of smaller and
bigger SKUs. Based on these SKUs we can divide the entire market into two segments:

Retail consumption market

Household & institutional consumption market

The market can also be divided on the basis of the price at which this bottled water is available
into three categories:

Super premium mineral water

Premium local natural mineral water

Popular or plain bottled water

56

Presently, Evian of Danone group; Perrier and San-Pellegrino of Nestle belong to super
premium category. Catch,Himalayan, Brilliant etc. belong to premium local natural mineral
water category.

All other brands like Bisleri, Bailley, Kinley, Aquafina etc. belong to popular or plain bottled
water category.

The packaged drinking water market is often categorized as per the clients they have:
Corporate,Theaters,Gymkhanas, College Canteens, Retail Outlets, Hotels and Restaurants and
Occasions.

India To Face Severe Water Crisis In The Future:

The per capita water availability in india is projected to declne to about 1,140 cubic meters per
year in 2050 from 1820 cubic meters per year recorded in 2001 according to the
Intergovernmental Panel on Climate Change (IPCC).

“ India will see a severe water crsis in 20 years if the government doesn’t change its ways and
clashes are already taking place because the resource is so scarce.” This was the warning by the
World Bank way back in 2005. “Estimates reveal that by 2020, India’s demand for water will
exceed all sources of apply.

All these reports point to just one thing for us now. That we should be on serving water and be
judicious in its use. If water is wasted today then it is our future generation which will suffer
because of it. So everyone needs to make a point from now to save water in any way they can.
If we cannot do that then the future is very clear. Water will be one of the most expensive
commodities and everyone will have to buy water shelling out huge amount of money for the
same. The implications could be worse than these if action is not taken now.

The fastest growth in the consumption of bottled water in the world has been recorded in India
according to a new study conducted by the US based earth policy institute. It even questions the
rising thrist for bottled water with consumption tripling in india over the past five years.

The Big Boom:

The bottle water industry has tin-doubted been one of the fastest growing business sectors in
India. The way it has grown since the early 1990s is indeed astounding.

And the high growth rate is expected to continue into future. Starling from a small base, the
growth was exponential up to early years of current century. Thereafter, there was a decline in
the pace of growth, and now witness a comparatively linear grwth, but nonetheless fairly rapid.
57

The bottle water industry is reported to have growth nine-fold over the past decade from around
15 million cases in 1997-98 to an estimated 130 million eases in 2007 -08 (I case=48 liters) this
traction to a compounded annual growth rate 24% er annum. In same year, the growth rate has
been as high as 40%. The market size is further projectd to increase to 265 million cases by the
year 2014-15 this works out of a projected growth rate of nearly 11% a year. While one has
crossed the exponential growth phase experienced during the industry’s nascent period, there is
lot of untapped potential and the industry would continue to experience double digit growth
rates for several years to come.”

In terms of value, the Indian bottled water segment is estimated currently at Rs.3000cr per
annum and expected to double within the next seven years. The international players currently
see India as the destination with a lot of growth possibility. India already the tenth largest
bottled water consumer in the world.

The demand has been further fueled due to increasing income and changing lifestyle of the
urban middle and upper classes of the population. It is also triggered by advertising and wide-
spread distribution of the product.
58

CHAPTER IV

Company Overview

Lakshmi water products” is one of the growing reputed manufacturing and supplier of a wide
range of Packaged Drinking Water Established in the year 2009. Besides, they produce
mango fruit juice based on the requirement of the needs. Lakshmi water products is
concentrated only on the dealer marketing, but not on the direct marketing.

Package Bottle varieties:

Factory products:

20ltr Bottle

5ltr Bottle

2ltr Bottle

1ltr Bottle

1/2ltr Bottle

500ml Bottle

Water pouches
Mango fruity varities:

500ml

250ml

200ml

Various departments

Purchase department: The purchase function begins on the release of the Bill of Material
(BOM) from the accounts department and ends only after the Packaged Drinking Water is fully
bottled and dispatched.

Marketing Department:

Marketing functions like

Sales Forecasting

Dealers requirement

Market Research

Sales Analysis

Price Analysis

Sales Reporting
Inventory Maintain ace
59

Human Resources Department:

Recruitment

Selection

Induction

Welfare Facilities

Finance Department:

1)Maintaining the records in an orderly manner and chronologically.

Submitting records to the management.

Checking and passing the bills for payment.

Making the payment for wages and salary to staffs and employees.

Quality Controller:

Strongly believing in complete customer satisfaction, they offer products with cent percent
quality assurance. They implement effective quality management system throughout the
production process on the basis of which, they are able to manufacture standard quality
products.
60

CHAPTER V

Analysis And Interpretation

Consumer related survey

Table 5. 1:

Number of respondents using mineral water frequently

Mineral water usage

No of respondents

Percentage

Always

18

36

Often

12

24
Sometimes

15

30

Never

10

Source: Primary Data

Chart5. 1:

Number of respondents using mineral water frequently

40

Per
cen
tag
e

30
 10

20

36

30

24

Per
cen
tag
e

Always
10
Often

Sometimes

Never

Respondents

Interpretation:

Ho: Larger Proportion of peo ple always use mineral water.

According to the survey it was seen that 18% of the users responded as using mineral water
always while 12% agreed to use if it often. 15% of respondents said they used mineral water
sometimes while there are 5 % of the respondents who said they never use packaged drinking
water.

As per the Chi-square test statistics value is 7.83 exceeds the critical valu e of 7.82 hence null
hypothesis is rejected hence it can be concluded that user go for an occasional use of the
mineral water .
61

Table 5.2:

Respondent’s choice amongst mineral water and soft drinks

Mineral water usage

No of respondents

Percentage

Always

20

40%

Often

10

20%

Sometimes

12

24%
Never

16%

Source: Primary Data

Chart5.2:

Respondent’s choice amongst mineral water and soft drinks

35%

Perce
ntage

30%
40%
20%

24%

25%
40%
16%

20% 5%

0%

15% Always

Often

Sometimes

Never

10%

Respondents

Interpretation:

Ho: People prefer soft drink w hen thirsty.

20% respondents agreed to always choosing mineral water over the soft drinks when thirsty while
10% chose it offen. As the Chi-square test statistics value 6.99 lesser than the critical value 7.82
hence null hypothesis is accepted. Hence it can be concluded that 20% of user always go in for
mineral water when they are thirsty.
62

Table 5.3:

Customer preference in terms of bottle sizes

Bottle Size

No of respondents

Percentage

500ml

13

26%

1lit

20

40%

5lit

14%
20lit

10

20%

Source: Primary Data

Chart5.3:

Customer preference in terms of bottle sizes

40%

35%

Per
cen
tag
e

30%
 10%

25%

14%

40 20%
%

5%

20%

0%

15%

26
%

Per 500ml
cen
1lit
tag
e 5lit
20li
t
Respondents

Interpretation:

Ho: 5 ltr and 20 ltr bottles of mineral water are the most preferred ones, by the
population. According to the survey 13% of the respondents preferred to buy 500ml
bottles, 20% preferred 1ltr bottles while 7% & 10% preferred 5ltr and 20ltr
respectively.As the Chi-square test statistics value 7.83 exceeds the critical value of 7.82
hence null hypothesis is rejected. Hence it can be concluded that the 5 ltr and 20 ltr
bottles are usually preferred only during special occasions such as marriage and Birthday
parties.
63

Table 5.4:

Price of mineral water

Price satisfaction

No of Respondent’s

Percentage

Yes

22

44%

No

28

56%

Sources : Primary Data

Chart5.4:

Price of mineral water

 60%

50%

40%

30%

56%

44%

Percentage

20%
Per
cen
tag
e 10%

0%

Yes

No

Respondents

Interpretation:
The observation shows that m ost of the people are not happy paying the price , the
companies are charging for the products. They feel that the price should be a little
lower.
64

Table 5.5:

Affect of advertising on purchase

Advertisement

No of respondents

P rcentage

Strongly Agree

10%

Agree

16

32%

Strongly Disagree

14

28%
Disagree

10

20%

Indifferent

20%

Sources : Primary Data

Chart5.5:

Affect of advertising on purchase

40%

Per 32%
cen
tag
e
 0%

28
%

Strongly

Agree

Strongly

Percentage
20
%

10
% Agree

20
Disagree
% Indifferent

20
%

Disagree
Res
po
nde
nts

Interpretation:

Ho: Advertisement doesn’t affect purchase decision of Mineral Water

16% agreed to the fact that advertising of packaged drinking water affected their purchase
while 5% strongly agree, 10% of the respondents disagreed, 14% strongly disagreed, while
5% consumers said theywere indifferent towards it.

As the Chi-square test statistics 8.2 is lesser than the critical value of 9.49 hence null
hypothesis is accepted. Hence it can be concluded that advertisements doesn’t affects the
purchase decision of Mineral Water.
65

Table 5.6:

Basis of selling a particular packaged Drinking Water Brand

Brand Effects

Respondents

Percentage

Demand by the customer

18

36%

Schemes offered by the companies

12%

Advertisement

14
28%

More margins

12

24%

Sources : Primary Data

Chart5.6:

Basis of selling a particular packaged Drinking Water Brand

30%

Perc
enta
ge

20%

36%

28%

24%

40%
 0%

10%

12%

De mand by Schemes Advertisement More m argins

the customer offered by the

companies

Respondent

Interpretation:

Ho: Demand of the customer is the main reason for selling of a particular brand of packaged
drinking water

Mostly the demand by the customer is the main reason for selling of particular brand of
packaged drinking water and then it comes to schemes, advertisements and margins. The other
reasons included availability replacement of leaked bottles etc.

As the Chi-square test statistics 6.33 which is less than the critical value of 7.82 hence null
hypothesis is accepted . Hence it can be concluded that demand of the c ustomer is the main
reason for selling of a particular brand of packaged drinking water.
66

Table 5.7:

Increase in bottled water

Consumer’s view

Health consciousness

Advertisement

Scarcity of water

Others

No of respondents

22

19

2
Percentage

44

38

14

Sources : Primary Data

Chart5.7:

Increase in bottled water

44

Per
cen
tag
e

45

50
 30

38

25

40

20

14

15

35
 0

10

Health

Advertisement

Scarcity of water

Others

consciousness
Res
po
nd
ent
s

Interpretation:

Ho: Tremendous growth in mineral water segment is not owing to increased health consciousness
and scarcity of portable drinking water amongst the population.

According to observation 22% of bottled water increases due to health conscious, 7% say it is due
to scarcity of drinking water and 19% say it is due to increased advertisements while 2% say there
may be other reasons like higher living standards, more disposable income etc.

As the Chi-square test statistics value 108.07 exceeds the critical value of 7.82 hence null
hypothesis is rejected and hence we reached at the result that our alternate hypothesis is accepted.
Hence it can be concluded that ,the growth in mineral water segment is due to increased in health
consciousness and scarcity of portable drinking water amongst the population.
67

Table 5.8:

Availab ility Of Packaged Water Brand Of Your Choice

Good availability

No of respondents

Percentage

Yes

13

26%

No

27

54%

Can’t say

10

20%

Sources : Primary Data

Chart5.8:

Availab ility Of Packaged Water Brand Of Your Choice

40% 26%

30% Percentage

20%

10%

0%

Per
cen
20%
tag
e

Yes

No

Can’t say

60
%
Respondents

54%
50
%
Interpretation:

It was seen in the survey that 51% said that their choice of mineral water was readily available
everywhere, whereas 47% disagreed and 2 % were not sure.
68

Table 5.9:

Future prospects of mineral water market

Sources
:
Primary
Prediction

Data
Excellen t

Chart5.
Good 9:

Average

No of response

22

10

16

Percentage

44%

20%

32%
Future prospects of mineral water market 20%

20%

15%

45% 16%

40%

10%

35%

44%

Percentage 5%

30%

32%

0%

25%
Respondents

Poor

16%

Percenta
ge

Interpretation:

22% of the total respondents said that the future prospects of the
mineral water industry is excellent, 10 % said it was good while 16%
gave it an average & 8 % said it had a poor future.
69

Table: 5.10

Decision to buy a particular Brand

Customer

Brand Image

Advertising

Price

Availabilit y

size/Package

preference

No of

12

14
15

respondent

Percentage

24%

28%

30%

10%

8%

Sources : Primary Data

Chart: 5.10

Decision to buy a particular Brand

28%

30%

30%

Perc
enta
24%
ge

25%
 8%

20% 5%

15% 0%

10%

Brand Image Advertising

Price

Availability size/Package

10%

Respondents

Interpretation:
12 % of people purchase packaged bottles due to brand image, 14% is based on advertising
remaining 15%, 5%, 4% is based on price, availability/size. Highest respondents purchase
mineral water only based on price.
70

Table 5.11:

Mineral water is much more hygienic than normal water

Respondent’s view

Yes

No

No of Respondent’s

38

12

Percentage

76%

24%
Sources : Primary Data

Chart5.11:

Mineral water is much more hygienic than normal water

80% Yes No

70% Respondents

60%

50% 76%

40%

30%
Perc
enta
ge
20% 24%

10%

0%
Percentage
Interpretation:

38 % people believed that purchasing drinking water is more hygienic than the normal drinking
water. And it is more taster than the normal tap water.
71

Table 5.12:

Price the companies are charging, is worth the produ ct

Respondent’s view

Yes

No

No of Respondent’s

21

29

Percentage

42%

58%
Sources : Primary Data

Chart 5.12:

Price the companies are charging, is worth the produ ct

30%

60% 20%

42%

58%

50%

Per
cen
tag
e

40% 10%
0% Respondents

Yes

No Percentage

Interpretation:

According to customers view price is too high and the customer are not satisfied.
72

Table 5.13:

Advertising of this product has any effect on your purchase

Respondent’s view

Yes

No of Respondent’s

31

29

Percentage

62%

38%

Sources : Primary Data

Chart5.13:

Advertising of this product has any effect on your purchase

50%

62%

Per 40%
cen
tag
e

30%

38%

70% Percentage

60%
20%

10% Yes

No

0% Respondents

Interpretation:

Advertisement is also the main cause that effects the purchase of mineral water brand.
Customer awareness is more required to carry out the business.
73

Table 5.14:

What is the response of royal choice mineral water in the market

prediction

Fair

Good

Average

Very

Excellent

good
No of

11

13

response

Percentage

22%

26%

6%

2%
Sources : Primary Data

Chart5.14:

What is the response of royal choice mineral water in the market

45%

40%

35%

26%

Perc
enta
30%
ge
22%

25%

44%
 2%

20%

15% 0%

6%

10% Fair

Good

Average Very good Excellent

5%

Respondents

Interpretation:

At persent royal choice mineral water running in the fair stage (i.e) 22% of the customer
think that the market for royal choice is good whereas 11% is in good, 13% is at average
and remaining 3% and 1% are very good and excellent.
74

Table 5.15:

Changes would the customer like to see in our Brand

Customer

Good packing

Increase MRP

Increase service

preferences

Respondents

10

25

15
Percentage

20%

50%

30%

Sources : Primary Data

Chart5.15:

Changes would the customer like to see in our Brand

 35%

Per
cen
tag 30%
e
50%

25%

50%

45%

20%

30%

Percentage

40%

15%

20%
 0%

10%

Good packing Increase MRP

Increase

service

5%

Repondents

Interpretation:

25 % of respondents wants to make changes in MRP,15% to increase service and remaining 10 %

needs a good package. These changes in goods might increase their commpany market image.
75

Table 5.16

Kind of service that they get from company

Customer

Regular visit of

On Time

Credit period

All of the above

preferences

Sales executive

Delivery

Respondents

13

15

20

2
Percentage

26

30

40

Sources : Primary Data

Chart 5.16

Kind of service that they get from company

40

Per 35
ce
nta
ge
 Percentage

30

25

10

40

20

30

15

26
 Credit period

All of the

Re Sales executive
gul
Delivery
ar
visi
t of
above
On
Ti
me

Respondent

Interpretation:

In most of the retail shops 13 % there will be a regular visit of sales executives ,15% there will
be on the time delivery of goods,20 credit period extension time and only 2 % of respondents
says that all the services are available.
76

Table 5.17

Is royal choice mineral water in your store

Respondent’s view

Yes

No

No of Respondent’s

44

Percentage

88

Sources : Primary Data

Chart 5.17

Is royal choice mineral water in your store

50

88

90 40

80 30

70

Percentage

60 20
12

10

Interpretatio
n:

Yes

No

Respondents

Percentage

44% of stores there is a prese nce of royal choice mineral water were 6% there is a absents of
this brand.
77

CHAPTER VI

Findings, Suggestions And Conclusion

Findings:

Brand awareness of the consumers is mainly more about the top, more publicized brands which
they also brought more.

Consumer’s answer to which size of bottle they prefer was 500 ml and 1ltr bottles.

Majority consumer also agreed that advertisements affected their purchase decision of a
particular packaged drnkingwater brand.

With the increasing health consciousness of the consumers they prefer packaged drinking water
more to tap water due to hygienic considerations.

Regarding the growth and future prospect of the mineral water market nearly all of the dealers
were optimistic and ranked it as a very rapidly growing excellent market.

Suggestions:

Advertisement to build the brand image that will provide the required ground to establish the
authenticity to the product.

Flavoured water without sugar and artificial ingredients could be introduced so that the
consumers also has a healthy substitute to the soft drinks.

Bulk water delivery to home at no additional cost.

POP (Point of Purchase) displaying the cost of water at Rs. 2 per mlt as the perception of
thepeople is that mineral water cost Rs. 10 per Lt.

Awareness programs at health club , schools & Nursing homes.

To win over the consumer belief and faith over the genuity of the product.

Display of hot and cold dispensers and bottles at places like hotels, clubs and airports Where
upper class group visits as they are the potential customers. Place like departmental stores,
petrol pumps and super bazaars can also be considered.

Mineral water in polybags like milk be more convenient to the consumers.

The company should organise camps at various part of the city also road show to bring about
the difference between mineral water and filter/purified water and to tell the people how
mineral water is more hygienic than filtered water/purified water.

To aware people the cost benefit analysis to the customer of how the mineral water would cost
less and benefit more, because people using purifier system cost too much.

From the study it has been found that majority of the people does not have any brand
preference. The company should establish brand image in mineral water with the help of
advertisement & better service to the customers
78

Buy two bottles get one' like offers can also be introduced by big brands.

Pirated or copied variants of branded water to be stopped.

Plastic quality of bottle can be improved as specially middle class segment don't want to throw
plastic bottles after water consumption and like the same bottle to be used in future or domestic
purposes.

The redressal forum should be located zone wise and the company should see the zonal head
reports every day regarding the grievances of the customers. The company should make proper
arrangements to get away with the grievances of the consumers as soon as possible.

Conclusion

After analysis of the data & facts we have collected from consumer & the retailers & matching
them with the objectives one can say that there is very future for mineral water market. Soft
drink market might be some threat to the mineral water at present but within few years the
scenario is going to change. Trend signifying increasing health consciousness amongst Indians
could also be observed.

Market has seen a tremendous growth from the early nineties & now it is increasing by 40%
every year so one easily say there is great potential in the mineral water market.

It could also be observed that the living standards of the people improving & as they are
becoming health conscious are ready to pay for water now. On the question of survival of so
many companies government has made policies & restrictions from April 2001 which will
force many manufactures to shut down their factories. But due to potential in the market
companies with quality product will survive.
79

6.4 Scope For Future Work

Future Plans:

Royal Choice water bottle is the new brand to the market. They at present concentrated to
capture the customer minds towards this products they are also engaged in making new
changes in the packaged bottle. Some of the future plans of the Lakshmi Water Products are as
follows

New pack sizes in bottles and cups.

Increase the distribution network between the manufacture and the end-user.

Strengthen presence in traditionally weak areas by setting up

Lakshmi Water Products planning to diversifyto increase fruit juice business.

The company plans to cover large area and also in the neighbouringplaces.

The company planning to place their products in large national and international exhibition
sinorder to expand their business.
80

Bibliography

Kotlar, Philip, Marketing Management, Prentice Hall, New Delhi.

Stanton, Etzel, Walker, Fundamentals of Marketing, Tata-McGraw Hill, New Delhi.

Saxena , Rajan ,Marketing Management , Tata-McGraw Hill, New Delhi

Webibliography: http://www.scribd.com/doc/55554735/Summer

http://www.scribd.com/doc/49699571/82/CONSUMER-HABITS-AND-PRACTICES
http://www.scribd.com/doc/30865256/Study-of-the-Market-Scenario-of-Indian-Packaged-
Drinking-Water-Industry-with-Focus
81

ANNEXURE

CONSUMER QUESTIONNAIRE

QUESTIONS

Q1.Do you consume mineral water?

a) Yes b) No

Q2. What’s your age?

a) 20-24 b) 25-34

c) 35-45 d) others

Q3.How often do you consume mineral water?

a) Always c) Sometimes

b) Often d) never

Q4. When feeling thirsty you opt for Mineral water Soft drink, juices etc a) Always b)
Sometimes c) Often d) never

Q5. Is your preferred brand of mineral water easily available?

Yes

No

Can’t Say

Q6.

Which size of bottle do you prefer?

a)

500 ml

b) 1 ltr

c)

5 ltr

d) 20 ltr

Q7.

What influences your decision to buy a particular Brand?

Brand Image

Advertising
o

Price

Availability

Size/Package

Q8.

How many brands do you aware of?

a)Two b) Three c) four d) more

82

Q9. Do you think mineral water is much more hygienic than normal water?

a)

Yes

b) No

Q10.

Do you think the price the companies are charging, is worth the product?

a)

Yes

b) No

Q11.

Does advertising of this product has any effect on your purchase?

a)

Yes

b) No

Q12.

Do you get the order on time from your dealer?

a)

Yes

b) No
RETAIL SHOP QUESTIONNAIRE

1. Which Brands of mineral water you keep in your store?

Brands Tick mark

Aguafina

Bisleri

Royal choice

Kinley

2.On which basis that brand sells more?

Brand Tick mark

Availability

Quality

Price
83

3.Which package size’s sells is more?

a)

500 ml

c) 1ltr

b)

2ltr

sd) 5ltr

4. How many boxes of Packaged Drinking water you sell per week?

a) 5-15 boxes b) 15-25 boxes

c) 25-35 boxesd) 35- above

5. Do you keep royal choice mineral water in your store?

a) Yes b) No

If Yes then what is the response of royal choice mineral water in the market?

Fair

Average

Good
Very good

Excellent

Do you get the order on time from your dealer?

a. Yes b.No

What kind of service you get from company?

Regular visit of Sales executive

On Time Delivery

Credit period

All of the above

What changes would the customer like to see in our Brand?

Good packing

Increase MRP

Increase service
84